SHRM Study Guide

visual learners
people who learn best by relying other sense of sight

weighted average
average of data that takes other factors such as the number of incumbents into account

physical, psychological, and social aspects of employee health

process of providing knowledge, skill, and abilities (ksa’s) specific to a task of job

transfer of learning
effective and continuing on-the-job application of the knowledge and skills gained through a training experience

balance sheet
statement that reports the financial position of the organization at a specific point in time, shows assets, liabilities, and shareholder equity

process that compares performance levels and/ or processes of one entity with those of another to identify performance gaps and set goals aimed at improving performance

blue ocean strategies
strategies that create competitive advantage by creating a new market arena in which there are no other competitors

business intelligence
ability to gather and analyze data from inside and outside the organization so that information is available for decision makers

cash flows statement
incoming and outgoing cash in areas of operations, investments and financing and remaining cash reserves; reflects an organizations ability to meet its current and short- term obligations

critical path
describes the shortest amount of time required to complete a project, taking into account all project task relationships

income statement
statement that reports revenues, expenses, and net income (profit) for a specific period- quarterly/ annually

lagging indicator
a metric that describes an activity that has already occurred

leading indicator
a metric that describes an activity that can change future performance and indicate higher degree of success in achieving strategic goals

mission statement
statement that specifies what activities an organization intends to pursue and what course management has charted for the future; a concise statement of its strategy

organizational culture
the basic beliefs and customs shared by members of an organization that contribute to an organizations sense of its identity

organizational values
beliefs that are important to an organization and often dictate employee behavior

stakeholder concept
concept that proposes that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities

strategic fit
a state in which an organizations strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities

strategic management
the actions that leaders take to move their organizations toward those goals and create value for all stakeholders

strategic planning
the process of setting goals and designing a path toward a competitive position

trend analysis
statistical method that studies the way in which a variable may change over time

the benefit created when an organization meets its strategic goals

value chain
the process by which an organization creates the product or service it offers to the customer

value drives
actions, processes, or results that are needed to deliver a desired value

variance analysis
statistical method that identifies the degree of difference between planned and actual performance

vision statement
vivid, guiding image of an organizations desired future, the future it hopes to attain through its strategy

ADDIE model
five- step instructional design process that governs the development of learning programs

study of how adults learn

relates to technical skills training; often a partnership between employers and unions

behavioral interview
type of interview that focuses on how applicants previously handled real situations

payment or services provided to employees to cover issues such as retirement, health coverage, sick pay/ disability schemes, life insurance, and paid time off

blended learning
planned approach to learning that includes a combination of instructor-led training, self-directed study, and/or on-the-job training

brain drain
exit of educated and skilled citizens from emerging and developing countries for better-paying jobs in developed countries

combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread

career management
preparing, implementing, and monitoring employees career paths, with a primary focus on the goals and needs of the organization

career planning
actions and activities that individuals perform in order to give direction to their work lives

pay rate divided by the midpoint of the pay range

all financial returns (beyond any benefits, payment or services) including salary and allowances

clusters of highly interrelated attributes, including knowledge, skills, and abilities (ska) that give rise to the behaviors needed to perform a given job effectively

competency based interview
questions are asked based on competencies for the position- candidates asked to provide examples of times when they demonstrated the competencies

contrast effect
error that occurs when strong candidates who interview after weak one appear even more qualified than they actually are because of contrast

core competencies
skills, knowledge, and abilities that employees must possess in order to successfully perform job functions that are essential to business operations

cost of living adjustment
periodic compensation payment given to eligible employees regardless of their performance or organizational profitability; usually linked to inflation

cultural noise
failure to recognize responses of a candidate that are socially acceptable rather than factual

developmental activities
activities that focus on preparing employees for future responsibilities while increasing their capacity to perform their current jobs

differential pay
pay rates that are affected by where or when an employee works

dual carrer ladders
career development programs that identify meaningful career paths for professional and technical people whose preferences may be outside traditional management roles

emotional intelligence
ability of an individual to be sensitive to and understanding of the emotions of others and to manage their own emotions and impulses

employment engagement
employees commitment to an organization; willingness to put in effort that promotes the effective functioning of the organization

employee life cycle
activities associated with an employees tenure in an organization

employment branding
process of positioning an organization as an ’employer of choice’ in the labor market

essential functions
primary job duties that a qualified individual must be able to perform either with or without reasonable accommodation

external equity
situation in which an organizations compensation levels and benefits are similar to those of other organizations that are in the same labor market and compete for the same employees

first impression error
type of interviewer bias in which interviewer makes snap judgments and lets first impression (positive or negative) cloud the interview

flat rate pay
provides the incumbent of a job with the same rate of pay regardless of performance or seniority; also known as single rate pay

focus group
small group (6 to 12) invited to actively participate in a structured discussion with a facilitator

general pay increase
pay increase given to employees based on local competitive market requirements; awarded regardless of employee performance

green circle rates
situations in which an employees pay is below the minimum of the range

halo effect
occurs when an employee is extremely competent in one area and is therefore rated highly in all categories

head count
number of people on an organizations payroll at a particular moment in time

horn effect
occurs when an employee receives an overall low rating because of one weakness

incentive pay
form of direct compensation where employers pay for performance beyond normal expectations to motivate higher performance

payments in return for the achievement of specific, time-limited, targeted objectives

internal equity
situation in which employees feel that performance of job differences result in corresponding differences in rewards that are fair

intrinsic motivation
desire to do things because they matter, because we like it, because they’re interesting, or because they are part of something important

job analysis
study of jobs to determine what activities and responsibilities they include, personal qualifications necessary for performance of the jobs, the conditions under which the work is performed, and the reporting structure

job classification
job evaluation method in which descriptions are written for each class of jobs,individual jobs are then put into the grade that best matches their class description

job description
written description of a job and its requirements, including required tasks, knowledge, skills, abilities, responsibilities, and reporting structure

job enlargement
broadening the scope of a job by expanding the number of different tasks to be performed

job enrichment
increasing the depth of a job by adding responsibilities such as planning, organizing, tracking, land completing reports

job evaluation
process that determines the value and price of a job in order to place and compare it within an organization as well as attract and retain employees in a competitive environment

job ranking
job evaluation method that involves establishing a hierarchy of jobs from lowest to highest based on each job’s overall value to the organization

job rotation
movement between different jobs

job specifications
written statements of the necessary qualifications for the job incumbent

job- content- based job evaluation
job evaluation method in which the relative worth and pay opportunities of different jobs are based on an assessment of their content and their relationship to other jobs within the organization

kinesthetic learners
people who learn best through a hands-on approach; also called tactile learners

knowledge management
process of creating, acquiring, sharing, and managing knowledge to augment individual and organizational performance

ability of an individual to influence a group or another individual toward the achievement of goals and results

leadership development
training and professional development programs targeted to assist management- and executive level employees in developing the skills, abilities, and flexibility required to deal with a variety of situations

learning management system
system that holds course content information and has the capability of tracking and managing employee course registrations, career development, and other employee development activities

learning organization
organization characterized by a capability to adapt to changes in environment

lump-sum increase
one-time payment made to an employee; also called performance bonus

market based job evaluation
job evaluation method in which the relative worth and pay opportunities of different jobs are based on their market value or the going rate in the marketplace.

maturity curves
correlate pay with time spent in a professional field such as teaching or research

middle point above and below which 50% of scores in a set of data lie

developmentally oriented relationship between two individuals

merit pay
situation where an individuals performance is the basis for the amount and timing of pay increases; also called performant-based pay or pay for performance

value that occurs most frequently in a set of data

factors that initiate, direct, and sustain human behavior over time

negative emphasis
type of interviewer bias that involves rejecting a candidate on the basis of a small amount of negative information

programs that help employees develop positive working relationships with coworkers; encompass orientation as well as the first months of an employees tenure in a position

on-the-job training
training provided to employees at the work site utilizing demonstration and performance of job tasks

organizational learning
certain types of learning activities or processes that may occur at any one of several levels in an organization

process in which a new employee becomes familiar with an organization as well as his or her department, coworkers, and the job

paired comparison
job evaluation method in which each job is compared with every other job being evaluated; the job with the largest number of ‘greater than’ rankings is the highest- ranked job, etc.

pay compression
occurs when there is only a small difference in pay between employees regardless of their skills, experience, or seniority; also known as salary compression

pay equity
fairness of compensation and benefits paid to employees

pay grades
used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range

pay ranges
set the upper and lower bounds of possible compensation for individuals whose jobs fall in a pay grade

study of the education of children

specific point in a distribution of data that has given percentage of cases below it

performance based pay
individuals performance is the basis of the amount and timing of pay increase

special incidental payments, benefits, or privileges given to individual employees, over and above their regular rewards.

person based pay
pay systems in which employee characteristics, rather that the job, determine pay

pilot programs
learning/ development programs offered initially in a controlled environment with a segment of the target audience

point factor system
job evaluation method that looks at compensable factors (skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the job

payments in return of rt. achievement of specific, time- limited, targeted objectives

productivity based pay
pay based on the quantity of work and outputs that can be accurately measured

realistic job preview
part of the selection process that provides an applicant with hones and complete information about a job and work environment

reasonable accommodation
modifications or adjustments to a job or job application process that accommodate persons with disabilities bt do not impose a disproportionate or undue burden on the employer

process of encouraging candidates to apply for job openings

red circle rates
situations in which employees pay is above the range maximum

ability of an instrument to measure consistently

remuneration surveys
surveys that collect information on prevailing market compensation and benefits practices, including starting wage rates, base pay, pay ranges, other statutory and market cash payments, variable compensation, and time off

ability to keep talented employees int eh organization

process of vetting the most suitable candidate for a position

selection interviews
interviews designed to probe areas of interest to the interviewer in order to determine how well a job candidate meets the needs of the organization

selection screening
analyzing candidates application forms, curriculum vitae, and resumes to locate the most qualified candidates for an open job

system that shows preference to employees with the longest service

assessment tools that provide candidates a wide range of leadership situations and problem solving exercises, including in-basket tests, financial or business data analysis, leaderless group discussions, interview simulations, role plays and psychological

business acumen
the ability to understand and apply information with which to contribute to the organizations strategic plan

the ability to effectively exchange information with stakeholders

the ability to provide guidance to organizational stakeholders

critical evaluation
the ability to interpret information with which to make business decisions and recommendations

ethical practice
the ability to integrate core values, integrity, and accountability throughout all

global & cultural effectiveness
the ability to value and to consider the perspectives and backgrounds of all parties in global business

HR expertise/ knowledge
the knowledge of principles, practices, and functions of effective human resource management

leadership & navigation
the ability to direct and contribute to initiatives and processes within the organization

relationship management
the ability to manage interactions to provide service and to support the organization

single rate pay
provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay

situation judgement tests (SJT’s)
assessment tools that present prospective leaders with sample situations and problems they might encounter in a work environment

social media
variety of online internet technology platforms and communities that people use to communicate and share information and resources

process of generating a pool of qualified job applicants

HR function that acts on the organizational human capital needs identified through workforce planning and attempts to provide an adequate supply of qualified individuals to complete the body of work necessary for the organizations financial success.

type of interviewer bias that involves forming generalized opinions about how people of a given gender, religion, or race appear, think , act, feel or respond

stress interview
type of interview in which interviewer assumes an aggressive posture to see how a candidate responds to stressful situations

structured interview
type of interview in which interviewer asks every applicant the same questions; also called a repetitive interview

talent management
development and integration of HR processes that attract, develop. engage, and retain the knowledge, skills and abilities of employees that will meet current and future business needs

time based step-rate pay
system in which pay is based on longevity in the job and pay increases occur on a predetermined schedule

total rewards
direct and indirect remuneration approached that employers use to attract, recognize, and retain workers

total rewards strategy
plan or method implemented by an organization that provides monetary, benefits inkind, and developmental rewards to employees who achieve specific business goals

unweighted average
raw average of data that gives equal weight to all factors, with no regard to individual factors such as the number of incumbents or organizations

ability of an instrument to measure what it is intended to measure

well being
physical, psychological, and social aspects of employee health

alternative dispute resolution (ADR)
umbrella term used to describe a number of problem solving and grievance resolution approaches

tools that convert metrics to be used for decision support by adding context or further sub classifying comparison groups

procedure in which disputes are submitted to one or more impartial persons for final determination

at will employment
common law principal; stating that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary and employees have the right to quit a job at any time

balanced scorecard
measurement approach that provides an overall picture of an organizations performance as measured against goals in finance, customers, internal business processes, and learning and growth

occurs when an appraiser’s values, beliefs, or prejudices distort performance ratings

big data
high volume, high velocity, and high variety information assist that require innovative forms of information processing for enhanced insight and decision making

broadcast style communications that enable authors to publish articles, opinions, product or service reviews, etc. on a web page

business case
presentation to management that establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost efficiency and probability of success

cause and effect diagram
diagram that maps out a list of factors that are thought to affect a problem or a desired outcome

center of excellence (COE)
HR structural alternative established as an independent department that provides services within a focused area to internal clients

central tendency error
error that occurs when an appraiser rats all employees within a narrow range, regardless of differences in actual performance.

check sheets
simple visual tools used to collect and analyze data

cloud compluting
style of computing in which scalable IT enabled capabilities are delivered as a service using internet technologies

form of corporate governance that requires a typical management board and supervisory board and that allows management and employees to participate in strategic decision making

collective bargaining
process by which management and union reps negotiate the employment conditions for a particular bargaining unit for a designated period of time

method of nonbonding dispute resolution involving a third party who tries to help disputing parties reach a mutually agreeable decision; also know as mediation

constructive discipline
form of corrective discipline that implements increasingly severe penalties for employees; also called progressive discipline

americans with disabilities act covering the definition of individuals regarded as having a disability, mitigating measures, and other rules of construction to guide the analysis of what constitutes a disability

adverse impact
type of discrimination that results when a neutral policy has a discriminatory effect; also known as disparate impact

age discrimination in employment act (ADEA)
act that prohibits discrimination in employment from persons age 40 and older

americans with disabilities act (ADA)
Act that prohibits discrimination against a qualified individual wiht a disability because of their disability

employees who work outside their home countries

bona fide occupational qualification (BFOQ)
situation in which religion, sex, or national origin is reasonably necessary to carrying out a particular job function in the normal operations of an organization

burlington industries inc, v. ellerth
court ruling that distinguished between supervisor harassment that results in tangible employment action and supervisor harassment that does not

civil law
legal system based on written codes (laws, rules, or regulations)

civil rights act of 1964
first comprehensive US law makning it illegal to discriminate on the basis of race, color, religion, sex, or national origin

civil rights act of 1991
act that expands the possible damage awards available to victims of intentional discrimination to include compensatory and punitive damages; gives plantiffs in cases of alleged discrimination the right to a jury trial

code of conduct
principles of conduct within an organization that guide decision making and behavior; also known as code of ethics

common law
legal system in which each case is considered in therms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.

comparable worth
concept that states that jobs requiring comparable skills, effort, responsibility, and working conditions filled primarily by women should have the same job classification and salary as similar jobs filled by men

compliance program
system for ensuring that policies and procedures addressing issues identified in the code of conduct are presented to and understood and acted on by everyone in the organization and for evaluating the results of those efforts

conflict of interest
situation in which a person or organization has the potential to be influenced by tow opposing sets of incentives

consolidated omnibus budget reconciliation act (COBRA)
act that provides individuals and dependents who may lose medical coverage with opportunity to pay to continue coverage

contingency plan
protocol that an organization implements to respond to an unplanned but identified risk event

corporate social responsibility (CSR)
reconition of the impact a corporation has on the lives of its stakeholders (including shareholders, employees, communities, customers, and suppliers) and the environment;

cultural relativism
concept that argues that ethical behavior is determined by local culture, laws, and business practices

set of beliefs, attitudes, values, and behaviors shared by members of a group and passed down from one generation to the next

dilemma reconciliation
process of charting a course through cultural differences

physical or mental impairment that substantially limits major life activities

disparate impact
type of discrimination that results when a neutral policy has discriminatory effect; also known as adverse impact

differences in characteristics of people; can involve personality, work style, race, age, ethnicity, gender, religion, education, functional level at work. etc.

diversity council
task force created to define a diversity and inclusion initiative and guide the development and implementation process

diversity dimensions
framework for understanding the range and complexity of diversity; includes for layers (personality, internal dimensions, external dimensions, and organization dimensions); also known as identity group

diversity of thought
concept describing the presence of different types of cognitive processes in a workplace; opposed to ‘group think’, or similarity of thought processes and opinions

ADA amendments act (ADAAA)
amendments to Americans with disabilities act covering the definition of individuals regarded as having a disability, mitigating measures, and other rules of construction to guide the analysis of what constitutes a disability

drug free workplace act
requires federal contractors with contracts of $100,000 or more as well as recipients of grants from federal government to certify they are maintaining a drug free workplace

due process
concept that laws are enforced only through accepted, codified procedures

duty of care
principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well being of employees and protect them from foreseeable injury

employee polygraph protection act (EPPA)
act that generally prevents employers engaged in or affecting interstate commerce from using lie detector tests either for preemployment screening or during the course of employment, with certain exemptions

employment resource group (ERG)
voluntary group for employees who share a particular diversity dimension (race, religion, ethnicity, sexual orientation) also known as affinity group or network group

employee retirement income security group (ERISA)
act that established uniform minimum standards for employer- sponsored retirement and health and welfare benefit programs

individuals who exchange work for wages or salary; in the US workers are covered by Fair Labor Standards Act regulations as determined by the IRS

employment practices liability insurance
type of liability insurance covering an organization against claims by employees, former employees, and employment candidates alleging that their legal rights in the employment relationship have been violated.

equal employment opportunity act
1972 act that amended Title VII and gave the equal employment opportunity commission authority to implement its administrative findings and conduct its own enforcement litigation

equal pay act (EPA)
act that prohibits wage discrimination by requiring equal pay for equal work

ethical universalism
concept that argues that there are fundamental ethical principles that apply across cultures

set of behavioral guidelines by which all directors, managers, and employees of an organization are expected to behave to ensure appropriate moral and ethical business standards, typically beyond the letter of the law

exempt employees
employees who are excluded from FLSA minimum wage and overtime pay requirements

extension of the power of a country’s laws over its citizens outside that country’s sovereign national boundaries

fair and accurate credit transactions act (FACT)
act that provides some relief to employers using third parties to conduct workplace investigations

fair credit reporting act (FCRA)
act that protects privacy of background information and ensures that information supplied is accurate

fair labor standards act (FLSA)
act that regulates employee status, overtime pay, child labor, minimum wage, record keeping, and other administrative converns

family medical leave act
act that provides employees with up to 12 weeks of unpaid leave to care for family members or because of serious health condition of the employee

faragher v city of boca raton
court ruling that distinguished between supervisor harassment that results in tangible employment action and supervisor harassment that does not

refers to the socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women

general duty clause
statement in occupational safety and health act that requires employers subject to OSHA to provide employees with a safe and healthy work environment

genetic information nondiscrimination act (GINA)
act that prohibits discrimination against individuals on the basis of their genetic information in both employment and health insurance

global integration strategy
globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations

global mindset
ability to take an international multidimensional perspective that is inclusive of other cultures, perspectives, and views

global remittances
monies sent back home by migrants working in foreign countries

characteristic of an organization with a strong global image but an equally strong local identity

system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and its own codes of conduct

griggs v duke power
1971 case that recognized adverse impact discrimination

potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness

high-context culture
society or group where people have close connections over a long period of time and where many aspects of behavior are not made explicit, because most members know what to do and think from years of interaction

hostile environment harassment
occurs when sexual or other discriminatory conduct is so severe and pervasive that it interferes with an individual’s performance; creates an intimidating, threatening, or humiliating work environment; or perpetuates a situation that affects the employee’s psychological well-being

identity alignment
extent to which diversity is embraced in management of people, products/ services, and branding

immigration reform and control act (IRCA)
act that prohibits discrimination against job applicants on the basis of national origin or citizenship; establishes penalties for hiring illegal aliens and requires employers to establish each employee’s identity and eligibility to work

extent to which each person in an organization feel welcomed, respected, supported, and valued as a team member

independent contractors
self- employees individuals hire on a contract basis for specialized services

transferring a previously outsourced function back in-house

intercultural wisdom
capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts; also called cultural intelligence

right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions

key risk indicators (KRI)
metrics that provide an early warning of increasing levels of uncertainty in a particular business area

labor management relations act
act that provides balance of power between union and management by designation certain union activities as unfair labor practices; also known as Taft-Hartley Act

labor management reporting and disclosure act
act that protects the rights of union members from corrupt or discriminatory labor unions; also known as Landrum- Griffin Act

Lechmere v NLRB
1992 case in which the US Supreme court ruled that an employer cannot be compelled to allow non employee organizers onto the business property

ledbetter v goodyear tire
2007 case in which the US Supreme court ruled that claims of sex discrimination in pay under Title VII were not timely because discrimination charges were not filled with the EEOC within the required 180 day time from

lilly ledbetter fair act pay
act that creates a rolling time frame for filing wage discrimination claims and expands plaintiff field beyond employee who was discriminated against

local responsiveness strategy
globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems

low context culture
society in which people tend to have many social connections but of shorter duration and where behavior and beliefs may need to be described explicitly so that those coming into the cultural environment know how to behave

moral hazard
situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will assume any resulting loss

national defense authorization acts
acts that expanded FMLA leave fro employees with family members who are covered members of the military

national federation of independent business v sebelius
supreme court ruling that PPACA requirement that individuals purchase health insurance was constitutional but that requirement that states expand Medicaid was not

national labor relations act (NLRA)
act that protects the rights of employees to organize unhampered by management; also known as Wagner Act

national origin
refers to the country (even those that no longer exist) of one’s birth or ancestors birth

NLRB v weingarten
landmark 1975 labor relations case that dealt with the right of unionized employee to have another person present during certain investigatory interviews

nonexempt employees
employees covered under FLSA regulations, including minimum wage and overtime pay requirements

occupational illness
medical condition or disorder other than one resulting from an occupational injury, caused by exposure to environmental factors associated with employment

occupational injury
injury that results from a work- related accident or exposure involving a single incident in the work environment

occupational safety and health act
act that established the first national policy for safety and health and continues to deliver standards that employers must meet to guarantee the health and safety of their employees

occupational safety and health administration
agency that administers and enforces the occupational safety and health act of 1970

situation in which a company relocates processes or production to an international location by means of subsidiaries or third party affiliates

older workers benefit protection act
act that amended ADEA to include all employee benefits; also provided terminated employees with time to consider group termination or retirement programs and consult an attorney

required for nonexempt workers under FLSA at 1.5 times there regular rate of pay for hours over 40 in a workweek

patient protection and affordable care act
2010 law that requires all citizens and legal residents to have min health coverage and employers with 50 FT employees to provide health benefits or pay a penalty

pension benefit guaranty corporation
set up by ERISA to insure payment of benefits in the event that a private sector defined benefit pension plan terminates with insufficient funds to pay the benefits

phillips v martin marietta corp
1971 case that stated that an employer may not, in the absence of business necessity , refuse to hire women with preschool aged children while hiring men with such children

portal to portal act
act that defines what is included as hours worked and is therefore compensable and a factor uncalculating overtime

principal agent problem
when an employee makes a decision for the employer potentially on the basis of personal incentives that are not aligned with the employers incentives

process alignment
underlying operations such as IT, HR and finance integrate across locations

protected class
people who are covered under a particular US federal or state anti discrimination law

prudent person rule
states that an ERISA plan fiduciary has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonable knowledgeable, prudent investor would under similar circumstances

quid pro quo harassment
sexual harassment when an employee is forced to choose between giving into a supervisors sexual demands and forfeiting an economic benefit such as pay, promotion, or continued employment

process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, different global location or a new location or position in current host country

reintegrating employees back into the home country after an assignment; includes adjustment to the new job and readjustment to the home culture and conditions

residual risk
among of uncertainty that remains after all risk management efforts have been exhausted

reverse innovation
innovations created for or by emerging economy markets and then imported to developed economy markets

the effect of uncertainty on objectives; outcomes may include opportunities or threats

risk appetite
amount of risk the organization of function is will ing to pursue or accept to attain its goals

risk control
ac action taken to manage a risk

risk management
identification, evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies

risk position
an organizations desired gain or acceptable loss in value

risk scorecard
tool used to gather individual assessments of various characteristics of risk

risk tolerance
amount of uncertainty an organization is wiling to pursue or to accept to attain its risk management goals

rule of law
concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws

all those affected by an organizations social, environmental, and economic impact- shareholders, employees, customers, suppliers, regulators, and local communities

practices that balance economic, social, and environmental interests to secure the interests of present and future generations

triple bottom line
economic, social, and environmental impact metrics used to determine an organizations success

uniformed services employment and reemployment rights act (USERRA)
act that protects the employment, reemployment, and retention rights of persons who served in the uniformed services

process by which a retirement benefit becomes nonforfeitable

vicarious liability
legal doctrine under which a party can be held liable for the wrongful actions of another party

weingarten rights
union employees’ rights to have a union representative or coworker present during an investigatory interview

worker adjustment and retraining notification act
act that requires some employers to give a minimum of 60 days’ notice if a plant is to close or if mass layoffs will occur

168 hours (7x 24 hours)

pareto chart
vertical bar graph

contrast error
error that occurs when an employees rating is based on how their performance compares to that of another employee

cost benefit analysis
ration of value created to cost of creating that value- allows management to determine the financial impact particular activities and programs have on an organizations profitability

delphi technique
forecasting technique that progressively collects information from a group without physically assembling the contributors

functional HR
HR in headquarters craft policies and the HR generalists within the divisions implement them

dedicated HR
allows businesses with different strategies in multiple units to apply HR expertise to each units specific needs

industrial actions
various forms of collective employee actions taken to protest work conditions or employer action

multinational enterprise
organization that owns or controls production or services facilities in one or more countries other than the home country

multiple linear regression
statistical method that can be used to project future demand; more that one variable is utilized

nominal group technique
group of individuals who meet face to face to forecast ideas and assumptions and prioritize issues

organizational development
process of enhancing the effectiveness and efficiency of an organization and the well being of its members through planned interventions

type of labor environment in which multiple forces are at work, each with its own agenda, and conflict is overcome through negotiation

shared services HR model
HR structural alternative in which centers with specific areas of expertise develop HR policies in those areas; each unit can then select what it needs from the menu of services

SWOT analysis
process for assessing an organizations strategic capabilities in comparison to threats and opportunities identified during environmental scanning