Business Management Chapter 24 Vocabulary

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Employee Turnover
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the extent to which people enter and leave employment in a business during a year.
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Exit Interview
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a formal interview with an employee who is leaving a company to determine the person’s attitudes and feelings about the company’s policies and procedures, management, and operations.
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Compensation
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the money and other benefits people receive for work.
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Wage
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compensation paid on an hourly basis.
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Salary
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compensation paid on other than an hourly basis, such as weekly or monthly.
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Commission Plan
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a compensation plan in which employees are paid a percentage of the volume for which they are responsible.
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Piece-rate Plan
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a compensation plan that pays the employee a fixed rate for each unit of production.
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Combination Plan
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a pay plan that provides each employee a small wage or salary and adds incentive pay based on the person’s performance.
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Bonus
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money paid at the end of a specific period of time for performance that exceeds the expected standard.
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Employee Benefits
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all forms of compensation and services the company provides to employees in addition to salaries and wages.
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Profit-sharing Plan
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a benefit plan that pays employees a small percentage of the company’s profits at the end of the year.
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Pension Plan
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a company sponsored retirement plan that makes regular payments to employees after retirement.
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401k Plan
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a company-sponsored retirement plan in which employees may choose to have a percentage of their pay contributed to one of several alternative investment plans selected by the employer.
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IRA Plan
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a retirement plan that is not company-sponsored, in which employees contribute a percentage of their pay, up to a specified legal limit, in any investment plan of their choice.
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Keogh Plan
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a retirement plan designed for self-employed people, who may contribute an amount of their earnings into an investment fund managed by an investment company.
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Flextime
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a plan that lets employees choose their own work hours, within specified limits.
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Job Sharing
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an employment plan that allows two people to share one full-time job.
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Cafeteria Plan
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a benefit program in which employees can select the benefits that meet their personal needs.
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Human Resources Management (HRM)
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all activities involved with acquiring, developing, and compensating the people who do the company’s work.
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360-degree Feedback
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a method of performance evaluation that uses performance feedback gathered from a broad range of people with whom the employee works, both inside and outside the organization.
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Employee Assistance Programs
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provide confidential personal problem-solving, counseling, and support services for employees.
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Job Description
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a list of the basic tasks that make up a job.
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Job Specification
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a list of the qualifications a worker needs to do a job.
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Promotion
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1) providing information to consumers that will assist them in making a decision to purchase a product or service. 2) the advancement of an employee within a company to a position with more authority and responsibility.
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Transfer
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the assignment of an employee to another job in the company that involves the same type of responsibility and authority.
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Discharge
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the release of an employee from the company due to inappropriate work behavior.
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Layoff
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a temporary or permanent reduction in the number of employees resulting from a change in business conditions.

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