360-degree Feedback
Is an instrument to get performance ratings and feedback from subordinates, peers, customers, and/or supervisors ....
Human Resource Glossary for HR Terms
HR Glossary
This comprehensive glossary of human resource (HR) terms defines words and phrases frequently used by HR professionals. We would like to encourage you to share and make use of this library. If you have any suggestions of terms we have missed or neglected please contact us & we will include it in our next update.
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−A−
Abilene Paradox
Refers to a situation when a group makes a collective decision that is counter to the thoughts and feelings of an individual ....
Absconding
Is an action on the part of the employee, where he/she just leaves the organization without informing their employee....
Absolute Ratings
A rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual ....
Absenteeism Policy
A policy about attendance requirements, scheduled and unscheduled time off, and measures for dealing with absenteeism ....
Agile HR
It refers to the way of working and organizing of the HR function that facilitates responsiveness ....
Applicant tracking system
It is a type of recruiting software that helps streamline the hiring process for an organization from beginning to end ....
Appraisal
Are meetings set up by the employer that allow the employer to discuss the performance of their employee ....
Appraisal Letter
Are written by the HR department to notify specific employees to praise their work performance during a calendar year ....
Apprenticeship
Is a training program for individuals who desire to become recognized in a specific trade or craft ....
Assessment Centres
Participants undertake a wide range of tasks and activities designed to assess their suitability for a particular organisation ....
Attendance Policy
Is a set of rules related to the attendance of employees. It includes rules related to sick leaves, casual leaves ....
Attrition
A term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result ....
−B−
Background Check
A process by which a person or company uses to verify that a person is who they claim to be ....
Background Verification
Is a process many organizations carry out in order to verify the information provided by the candidate during hiring ....
Balanced Scorecard
A strategic planning and management system that is used to tie business activities to the vision and mission statement ....
Basic Salary
Basic salary refers to the amount of money that an employee receives prior to any extras being added or payments ....
Behavioral competency
Behavioral competency is essentially an evaluation of the character traits of an employee ....
Behaviorally Anchored Rating Scale
An appraisal that requires raters list important dimensions of a particular job and collect information regarding ....
Bell Curve
Bell curves, also called Gaussian distributions and normal distributions, are so-called because the line ....
Benchmarking
It is a process of measuring the performance of an organization or team through a variety of metrics ....
Bonus
Is a financial compensation that is above and beyond the normal paycheck of the recipient ....
Bumping
Giving long-standing employees whose positions are to be eliminated the option of taking other positions within the org....
Business Process Outsourcing
It is a method of subcontracting various business-related operations to third-party vendors ....
−C−
Career Break
A career break is an agreed period of time off from employment, either for family reasons or for personal reasons ....
Career Path
Career Path basically means the various positions an employee moves on one by one as he grows in an organization ....
Change management
It is a structured approach to transitioning individuals or organisations from the current state to the desired state ....
Churn Rate
It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions ....
Coaching
Generally follows the format of individual guidance that is focused on job performance and aimed at one person ....
Compensation And Benefits
It is a sub-discipline of human resources, focused on compensating employee and policy-making ....
Compensatory Off
is an entitled leave that an employee can take on a working day as a compensation for working on a holiday or weekend ....
Competency
It is a set of demonstrable characteristics and skills that enable, and improve the efficiency of, performance of a job ....
Competency-based Pay
Competency based pay is a compensation system that recognises employees for the depth, breadth, and types of skills ....
Confidentiality agreement
This is an agreement between an employer and employee in which the employee may not disclose patented information ....
Confirmation Letter
It is an official letter handed over to the employee confirming his employment at the organisation ....
CTC
It indicates the total amount of expenses an employer (organization) spends on an employee during one year ....
Cost-Per-Hire
The costs linked to hiring talent. These costs can include advertising, agency fees, relocation costs, and training costs ....
Cross-functional team
It is a group in an organization that is made up of members from different departments or different specializations ....
−D−
Deferred compensation
It is a compensation plan that allows employees to defer compensation earned in one tax year to a future tax year ....
Delayering
It is the process of removing layers of hierarchy between the highest and lowest levels in an organisation ....
Disciplinary Procedure
A procedure carried out in the workplace in the event of an employee committing some act contrary to the agreement ....
Disciplinary Action
Disciplinary action is the step taken by the organization against employees that do not comply with certain ....
Downshifting
It refers to social behaviors whereby individuals reduce the responsibility and complexity in their lives ....
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E-Recruitment
Web-based software that handles the various processes included in recruiting and on-boarding job candidates ....
Employee Assessments
Employee assessments are performance appraisals or reviews used to evaluate employees' performance ....
Employee benefits administration
It means determining and managing the benefits offered to the employees at a company ....
Employee Clearance
Also known as full and final settlement that happens when an employee resigns, is expelled or retires from the job ....
Employee Database
Think of it as a digital filing cabinet to store employee data including name, job position, salary, hire date ....
Employee Empowerment
It is a management philosophy that emphasizes the importance of allowing employee to make independent decision ....
Employee Engagement
It is a workplace method designed to improve an employee’s feelings and emotional attachment ....
Employee Lifecycle
Every employee goes through a series of stages from the day they apply for a job right through to the day they leave ....
Employee Net Promoter Score
It is a scoring system designed to identify how likely your employees are to recommend your organisation as a great place to work. ....
Employee Onboarding
Is the process of onboarding new hires into an organization. Sometimes used synonymously with new hire orientation ....
Employee Orientation
Is the process of introducing new hires to their jobs, co-workers, responsibilities, and workplace ....
Employee Referral Program
refers directly to the hiring process, where an existing employee refers a potential candidate for an opening in the organisation ....
Employee Relations
Refers to an organization’s efforts to create and maintain a positive relationship with their employees ....
Employee Retention
A function of the HR department tasked with reducing the number of employees leaving the company ....
Employee Satisfaction
Is the extent to which an individual is happy with their job and the role it plays in their life ....
Employee Self Service
It is a feature available in HR software that allows workers to perform tasks normally conducted by the HR function ....
Employee Turnover
Employee turnover is the measurement of the number of employees who leave an organization during a year ....
Employment History
An employment history includes a record of all the previous jobs of an applicant ....
Employer Branding
A strategy designed to make an organization appealing as a good place to work ....
Employer Value Proposition
A unique set of offerings, associations and values to positively influence target candidates and employees ....
Enterprise Resource Planning (ERP)
It is a powerful HR software that allows leaders to manage, manipulate and analyse key business information ....
Equity Theory
Based on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will ....
Exit interview
It is an activity that allows a departing employee and their organization to exchange information ....
Expatriate
An employee who is transferred to work abroad on a long-term job assignment. Expats usually earn more ....
EDLI
EDLI stands for Employee Deposit Linked Insurance Scheme.It came into being in the year 1976. The intent of the government behind ....
Employee Assistance Program
The Employee Assistance Program (EAP) is a program offered at workplaces that provides aid to the employees from ....
Ex Gratia Payment
Ex Gratia means “by virtue of grace”. It is a form of voluntary compensation that organizations pay to ....
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Factor Comparison
A systematic and scientific comparison, that instead of ranking complete jobs, ranks according to a series of factors ....
Five Factor Model
It is a theory based upon the Big Five personality traits, identified as openness to new experiences ....
Floating Holidays
Are paid holidays you give to your employees, but they aren’t tied to specific dates like federal holidays are ....
Forced Ranking
This is a system of work performance evaluation in which employees are compared against each other ....
Functional Job Analysis
Functional job analysis is a method of gathering specific and detailed job information ....
Form 12B
Form 12B is an income tax form issued by the Income Tax Department of India which is to be submitted by ....
Form 12C
Form 10C is a document issued by the Income-tax Department of India which is to be filled in order to ....
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Gamification
Gamification refers to a process of making systems, processes or other employment-related activities more enjoyable ....
Gender Divide
Differences between women and men in society, used in a range of fields including sociology, politics and economics ....
Generation X
A demographic cohort born after the post-war baby boomers, tend to use birth dates from the early 1960s to the early 1980s ....
Generation Z
A demographic cohort containing individuals born between the early 2000s and the present day ....
GIG Economy
A gig economy is an economy where organisations rely more on freelancers and independent contractors instead of ....
Golden handcuffs
These are contractual clauses that provide financial and non-financial benefits to executives that are forfeited ....
Gratuity
Is given by the employer to his/her employee for the services rendered by him during the period of employment ....
Grievance
A grievance is a complaint brought forward by an employee about an alleged violation of law or dissatisfaction with work ....
Gross misconduct
Gross misconduct is an action so serious that it calls for the immediate dismissal of an employee ....
Gross Salary
Gross salary can be defined as the amount of money paid to an employee before taxes and deductions are discounted ....
−H−
Hawthorne effect
the concept is that employee motivation can be influenced by how aware they are of being observed ....
Hierarchy of Needs
A theory proposed by American psychologist Abraham Maslow that categorises human desires ....
HR Audit
A periodic measurement of human resources effectiveness, conducted by internal staff or ....
HR Business Partner
They are HR professionals who work closely with an organisation’s senior leaders in order to develop an HR strategy ....
HR Consulting
Specialist advice and services provided by a third-party to help businesses maximize the efficiency of their HR operations ....
HR Generalist
It is a professional who oversees the human resources responsibilities and activities of an organisation ....
HR Software
It is a software packages designed to automate many of the common HR tasks and free up resources ....
Human Capital Management
The challenge of recruiting and retaining qualified candidates, and helping new employees fit into an organization ....
Human Resources Analytics
Is a field of analytics that refers to implementing an analytics process in an organisation's in the hope of improving employee performance and return on investment. ....
Human Resource Information System
It is a software that is used for carrying out HR processes such as data tracking, self-service for employees, analyzing data ....
Human Resource Management
The management of an organisation’s workforce with overall responsibility for every aspect of human capital including ....
Human Resource Management System
HRMS refers to a suite of software that organizations use to manage internal HR functions ....
Human Resource Outsourcing
A contractual agreement between an employer and an external third-party provider whereby the employer ....
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Incentive Pay
refers to giving employees bonuses or other forms of compensation in exchange for going beyond their normal duties ....
Induction
Induction is the process of introducing a new employee to the company culture and processes with the aim of bringing ....
Informal Communication
Informal communication in the workplace is communication that takes place outside the formal, communication structures ....
Internship
Are training programs aimed at younger workers, from school-age students to post-graduates ....
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Job Analysis
A process aimed at codifying the nature of a job role to help organisations understand the types of people they need ....
Job Board
An online location that provides an up-to-date listing of current job vacancies in various industries ....
Job Classification
A process that aims to classify a job in a standardized scale by its responsibilities, duties and the competencies required ....
Job Description
A written statement that explains the responsibilities and qualifications of a given job, based on a job analysis ....
Job Evaluation
A systematic, formal process that allows organisations to compare jobs to others across the company and the industry ....
Job Rotation
It is movement of employees in different job roles which enriches their skills, ability to work on different roles and experience ....
Johari Window
The Johari Window model is a disclosure / feedback model of self awareness, an information processing tool ....
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Key Performance Indicators
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is ....
Key Result Areas
Refers to general areas of outcomes or outputs for which a role, or a combination of roles, is responsible ....
Knowledge Management
Knowledge management is the conscious process of defining, structuring, retaining and sharing the knowledge ....
KSAs
Refers to knowledge, skills and abilities, often used in the context of the KSAs candidates need to perform a job role ....
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Labor Union
Labor unions, often called worker unions or trade unions, are groups of employees who have joined forces to achieve common goals ....
Lateral Recruitment
We can define the lateral recruitment process phase as the process of hiring a "skilled and professional candidate" for ....
Layoff
A layoff is the suspension or permanent termination of employment of workers by their employer ....
Leadership Development
Leadership development refers to activities that improve the skills, abilities and confidence of leaders ....
Learning and Development
Learning and development, a subset of HR, aims to improve group and individual performance by increasing ....
Learning Management System
A software platform for businesses and organizations designed to train and educate employees ....
−M−
Management by Objective
management by objectives is a results-driven process that aims to define objectives within an organisation ....
Management Styles
Management styles are the principles that underlie the methods, abilities and techniques managers use in ....
Management Training
It is a training activity that focuses on improving an individual’s skills as a leader and manager ....
Matrix Organization
Businesses in which employees work in both traditional siloed departments as well as in cross-departmental teams ....
Mean wage
The mean wage is the average wage that employees receive for the same work performed during a given period of time ....
Mentoring
Mentoring is a system of semi-structured guidance whereby one person shares their knowledge, skills and experience ....
Merit Pay
Merit pay is a system,where one is paid on the basis of the achievement of targets by an individual ....
Micromanagement
Micromanagement is a negative term that refers to a management style characterised by ....
Millennials
also known as Generation Y or the Net Generation, are the demographic cohort that directly follows Generation X ....
−N−
Nepotism
Favouritism to relatives due to the blood relationship rather than making decisions based on standard metrics such as ....
Net Salary
It is also known as take-home salary, is the amount of money that you will receive after all deductions ....
Nondisclosure Agreement
A contract restricting an employee from disclosing confidential or proprietary information ....
−O−
Occupational Stress
The physiological and physical effects of negative activity in the workplace as a result of many factors including ....
Offer Letter
It is used to formally offer a position to a candidate, and provide important information including start date ....
Offshoring
It is the process of relocating a business or business process to another country in order to benefit from reduced labour ....
Objectives And Key Results (OKR)
OKR methodology is a goal setting framework that helps teams and organisations achieve their goals through identifiable and measurable outcomes....
Onboarding
Also known as organisational socialisation, onboarding is the process by which new hires are emotionally, physically and ....
Organizational Change
Organisational change refers to the alteration of structural relationships and roles of people in the organization ....
Organizational Culture
The values, attitudes, beliefs and behaviors that characterize an organization. It is the unwritten workplace ethos that ....
Organizational Development
Processes and activities that aim to make improvements at the organisational level. Organisational Development is an ....
Orientation
Orientation is the process of bringing employees up to speed on organisational policies, job roles and responsibilities ....
Outsourcing
Outsourcing is the business practice of hiring a party outside a company to perform services and create goods ....
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Payroll
Documentation created and maintained by the employer containing such information as hours worked, salaries ....
Payroll Software
Payroll software is an application that manages, organizes and automates employee payment ....
People Analytics
is the use of employee and candidate's data to understand their impact on business goals and assess the effectiveness of hiring and HR initiatives ....
People Operations
is the management of employees, labour and talent in the organisation. It focuses on developing and retaining top talent in the organisation ....
Performance Appraisal
is a regular review of an employee's job performance and overall contribution to a company ....
Performance Improvement
Performance improvement is a strategy under the umbrella of performance management to help employees ....
Performance Improvement Plan
It is also known as a performance action plan, is a tool to give an employee with performance deficiencies ....
Performance Management
It is a process of linked activities that aim to ensure goals are being met in the most efficient and productive way possible ....
Performance Management Cycle
This performance management cycle is a cyclical phenomenon in which employees are evaluated throughout the year ....
Performance Planning
It is a sub-area of performance management and is concerned with providing a clear, structured ....
Probationary Arrangements
Is terms set between an employer and a new hire. When an employer hires a new person to the company, it would ....
Probationary Period
Probationary periods are defined periods of time that employees are exempt from certain contractual items ....
Psychometric Test
are designed by psychologists to test a person's mental state, personality and thought processes ....
−Q−
Quality management
A system to make sure that a product or service meets standards of excellence, and that the process by which ....
Queen Bee Syndrome
It is defined as a situation where high ranking women in positions of authority treat the women who work ....
−R−
Recruitment
It refers to the process of identifying, attracting, interviewing, selecting, hiring and on-boarding employees ....
Recruitment Software
It is software tools used by recruiters, talent acquisition professionals, and hiring managers to streamline ....
Redundancy
Termination of employees for business reasons, such as poor economic conditions. Redundancy can be force or voluntary ....
Relieving Letter
is a formal letter that is issued to an employee at the time of leaving an organization ....
Remuneration
This is the pay or other financial compensation and benefits provided in exchange for an employee's ....
Request for proposal
is a document that companies use to gather information about services from a potential supplier or vendor ....
Restricted Holidays
Restricted holiday means a holiday that is optional, and it is the discretion of the employee whether ....
Retention strategy
Retention strategies are policies and plans that organisations follow to reduce employee turnover and ....
Reverse Mentoring
An initiative in the workplace where older employees are mentored by younger employees ....
Rewards and Recognition
This is a system where people are acknowledged for their performance in intrinsic or extrinsic ways ....
Right to Manage
A ‘right to manage’ is a discretion of managers or leaders to govern a company in the way they see fit ....
Risk Management
Risk management is a process whereby organisations identify and analyse potential business risk and ....
Roster Management
This refers to schedule management. Schedule is also known as rota or roster. Managing a roster typically includes ....
Rotational Training
Rotational training aims to diversify an individual’s understanding, knowledge and skills by rotating them between ....
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Sabbatical leave
Sabbaticals are prolonged absences from the workplace of people to achieve their life goals. ....
Sensitivity Training
A type of emotional training designed to help people become more aware of their intrinsic judgement and prejudices ....
Situational Leadership
A management theory stating that effective leadership varies, but is task-relevant, and the most successful ....
Skill Gap
This is the difference in the skills required on the job and the actual skills possessed by an employee ....
Social Collaboration
Social collaboration is the joined-up efforts of multiple stakeholders in pursuit of a common goal ....
Social HR
The use of online social media platforms to fulfill HR functions, most notably recruitment, but also including ....
Social Networking
The building of online communities of people who have common interests. LinkedIn, Facebook and MySpace ....
Social Recruitment
This is concerned with sourcing candidates for jobs via social media channels and social media networks ....
Software as a service (SaaS)
Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications ....
Staffing
Staffing is an umbrella term that describes the recruitment, on-boarding, training and positioning of workers within ....
Strategic HRM
It refers to aligning human resource management (HRM) with the strategic goals of an organisation ....
Strategic Planning
A coherent planning strategy whereby businesses define their values, objectives and needs and then allocate ....
Succession planning
This refers to procedures and processes designed to develop internal talent for the purpose of filling leadership ....
Summary Dismissal
Summary dismissal is the immediate termination of an employment contract due to an employee’s behavior ....
Suspension
This is when an employee is sent home from work, usually while receiving full pay. Employers are entitled to suspend ....
System Changeover
System changeover is concerned with the smooth shift from one way of doing things to another ....
Systemic discrimination
This is also called institutionalized discrimination, refers to a method of discrimination which occurs ....
−T−
Talent Acquisition
This refers to the process of identifying and acquiring skilled workers to meet your organisational needs ....
Talent Management
Talent management is a unified strategy designed to help organisations make the best possible use of their human capital ....
Talent Management Software
Talent management software refers to an integrated tool that focuses on different components of managing HRM....
Tangible rewards
Material or monetary incentives, or incentives that can be easily translated into a cash value ....
Tax
Are involuntary fees levied on individuals or corporations and enforced by a government entity ....
Taxable Income
Is the amount of income used to calculate how much tax an individual or a company owes to the government ....
Team building
A philosophy of job design which fosters teamwork to create a work culture that values collaboration ....
Total Compensation
Total Compensation is the complete pay package for employees, beyond just salary. This includes all forms of money & perks ....
Total Quality Management
Total quality management is a method and set of beliefs aimed at continuous improvement of product ....
Total Remuneration
Refers to a total sum of an employee’s annual compensation package, including both basic pay aka salary ....
Training and Development
Training and development describes the formal, ongoing efforts that are made within organizations to improve ....
Training Needs Analysis
Is concerned with addressing skills gaps at the organisational level, group level and the individual level ....
Transformational Leadership
Transitional leadership is a style of leadership focused on energy, vision and transformation ....
Turnover
Is the percentage of employees in a workforce that leave during a certain period of time ....
−U−
Unconscious Bias
Are social stereotypes about certain groups of people that individuals form outside their own conscious awareness ....
−V−
Variable Pay
Is the portion of sales compensation determined by employee performance. It is provided as a type of bonus....
Virtual HR
Refers to a range of options that connect employees directly with HR systems, allowing them to input data directly ....
Voluntary Benefits
Voluntary benefits are employee benefits paid for by the employee rather than the employer ....
−W−
Wage Drift
The difference between an individual’s basic pay and their total compensation, the latter of which includes financial benefit ....
Wellness Programs
Programs offered by an employer that are designed to promote health or prevent disease ....
Work-life Balance
Refers to the level of prioritization between personal and professional activities in an individual life ....
Workforce Management
Is a term that encompasses all of the processes that a contact center undertakes in order to have the right number of staff ....
Workforce Planning
The assessment of the current workforce in order to predict future needs. This can consist of both demand planning ....
Workplace Bullying
In general it is unreasonable or aggressive behavior aimed at a specific group or individual ....
Wrongful Termination
Is a situation in which an employee's contract of employment has been terminated by the employer ....