Human Resource Glossary for HR Terms

360-degree FeedbackIs an instrument to get performance ratings and feedback from subordinates, peers, customers, and/or supervisors ....CONTINUE READING

Abilene ParadoxRefers to a situation when a group makes a collective decision that is counter to the thoughts and feelings of an individual ....CONTINUE READING

Absconding Is an action on the part of the employee, where he/she just leaves the organization without informing their employee....CONTINUE READING

Absolute RatingsA rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual ....CONTINUE READING

Absenteeism Policy A policy about attendance requirements, scheduled and unscheduled time off, and measures for dealing with absenteeism ....CONTINUE READING

Agile HR It refers to the way of working and organizing of the HR function that facilitates responsiveness .... CONTINUE READING

Applicant tracking systemIt is a type of recruiting software that helps streamline the hiring process for an organization from beginning to end ....CONTINUE READING

AppraisalAre meetings set up by the employer that allow the employer to discuss the performance of their employee ....CONTINUE READING

Appraisal LetterAre written by the HR department to notify specific employees to praise their work performance during a calendar year ....CONTINUE READING

ApprenticeshipIs a training program for individuals who desire to become recognized in a specific trade or craft ....CONTINUE READING

Assessment CentresParticipants undertake a wide range of tasks and activities designed to assess their suitability for a particular organisation ....CONTINUE READING

Attendance PolicyIs a set of rules related to the attendance of employees. It includes rules related to sick leaves, casual leaves ....CONTINUE READING

AttritionA term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result ....CONTINUE READING

Background CheckA process by which a person or company uses to verify that a person is who they claim to be ....CONTINUE READING

Background VerificationIs a process many organizations carry out in order to verify the information provided by the candidate during hiring ....CONTINUE READING

Balanced ScorecardA strategic planning and management system that is used to tie business activities to the vision and mission statement ....CONTINUE READING

Basic SalaryBasic salary refers to the amount of money that an employee receives prior to any extras being added or payments ....CONTINUE READING

Behavioral competencyBehavioral competency is essentially an evaluation of the character traits of an employee ....CONTINUE READING

Behaviorally Anchored Rating ScaleAn appraisal that requires raters list important dimensions of a particular job and collect information regarding ....CONTINUE READING

Bell CurveBell curves, also called Gaussian distributions and normal distributions, are so-called because the line ....CONTINUE READING

BenchmarkingIt is a process of measuring the performance of an organization or team through a variety of metrics ....CONTINUE READING

BonusIs a financial compensation that is above and beyond the normal paycheck of the recipient ....CONTINUE READING

BumpingGiving long-standing employees whose positions are to be eliminated the option of taking other positions within the org....CONTINUE READING

Business Process OutsourcingIt is a method of subcontracting various business-related operations to third-party vendors ....CONTINUE READING

Career BreakA career break is an agreed period of time off from employment, either for family reasons or for personal reasons ....CONTINUE READING

Career PathCareer Path basically means the various positions an employee moves on one by one as he grows in an organization ....CONTINUE READING

Change managementIt is a structured approach to transitioning individuals or organisations from the current state to the desired state ....CONTINUE READING

Churn RateIt is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions ....CONTINUE READING

CoachingGenerally follows the format of individual guidance that is focused on job performance and aimed at one person ....CONTINUE READING

Compensation And BenefitsIt is a sub-discipline of human resources, focused on compensating employee and policy-making ....CONTINUE READING

Compensatory Offis an entitled leave that an employee can take on a working day as a compensation for working on a holiday or weekend ....CONTINUE READING

CompetencyIt is a set of demonstrable characteristics and skills that enable, and improve the efficiency of, performance of a job ....CONTINUE READING

Competency-based PayCompetency based pay is a compensation system that recognises employees for the depth, breadth, and types of skills ....CONTINUE READING

Confidentiality agreementThis is an agreement between an employer and employee in which the employee may not disclose patented information ....CONTINUE READING

Confirmation LetterIt is an official letter handed over to the employee confirming his employment at the organisation ....CONTINUE READING

CTCIt indicates the total amount of expenses an employer (organization) spends on an employee during one year ....CONTINUE READING

Cost-Per-HireThe costs linked to hiring talent. These costs can include advertising, agency fees, relocation costs, and training costs ....CONTINUE READING

Cross-functional teamIt is a group in an organization that is made up of members from different departments or different specializations ....CONTINUE READING

Deferred compensationIt is a compensation plan that allows employees to defer compensation earned in one tax year to a future tax year ....CONTINUE READING

DelayeringIt is the process of removing layers of hierarchy between the highest and lowest levels in an organisation ....CONTINUE READING

Disciplinary ProcedureA procedure carried out in the workplace in the event of an employee committing some act contrary to the agreement ....CONTINUE READING

Disciplinary ActionDisciplinary action is the step taken by the organization against employees that do not comply with certain ....CONTINUE READING

DownshiftingIt refers to social behaviors whereby individuals reduce the responsibility and complexity in their lives ....CONTINUE READING

E-RecruitmentWeb-based software that handles the various processes included in recruiting and on-boarding  job candidates ....CONTINUE READING

Employee AssessmentsEmployee assessments are performance appraisals or reviews used to evaluate employees' performance ....CONTINUE READING

Employee benefits administrationIt means determining and managing the benefits offered to the employees at a company ....CONTINUE READING

Employee ClearanceAlso known as full and final settlement that happens when an employee resigns, is expelled or retires from the job ....CONTINUE READING

Employee DatabaseThink of it as a digital filing cabinet to store employee data including name, job position, salary, hire date ....CONTINUE READING

Employee EmpowermentIt is a management philosophy that emphasizes the importance of allowing employee to make independent decision ....CONTINUE READING

Employee EngagementIt is a workplace method designed to improve an employee’s feelings and emotional attachment ....CONTINUE READING

Employee LifecycleEvery employee goes through a series of stages from the day they apply for a job right through to the day they leave ....CONTINUE READING

Employee Net Promoter ScoreIt is a scoring system designed to identify how likely your employees are to recommend your organisation as a great place to work. ....CONTINUE READING

Employee OnboardingIs the process of onboarding new hires into an organization. Sometimes used synonymously with new hire orientation ....CONTINUE READING

Employee OrientationIs the process of introducing new hires to their jobs, co-workers, responsibilities, and workplace ....CONTINUE READING

Employee Referral Programrefers directly to the hiring process, where an existing employee refers a potential candidate for an opening in the organisation ....CONTINUE READING

Employee RelationsRefers to an organization’s efforts to create and maintain a positive relationship with their employees ....CONTINUE READING

Employee RetentionA function of the HR department tasked with reducing the number of employees leaving the company ....CONTINUE READING

Employee SatisfactionIs the extent to which an individual is happy with their job and the role it plays in their life ....CONTINUE READING

Employee Self ServiceIt is a feature available in HR software that allows workers to perform tasks normally conducted by the HR function ....CONTINUE READING

Employee TurnoverEmployee turnover is the measurement of the number of employees who leave an organization during a year ....CONTINUE READING

Employment HistoryAn employment history includes a record of all the previous jobs of an applicant ....CONTINUE READING

Employer BrandingA strategy designed to make an organization appealing as a good place to work ....CONTINUE READING

Employer Value PropositionA unique set of offerings, associations and values to positively influence target candidates and employees ....CONTINUE READING

Enterprise Resource Planning (ERP)It is a powerful HR software that allows leaders to manage, manipulate and analyse key business information ....CONTINUE READING

Equity TheoryBased on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will ....CONTINUE READING

Exit interviewIt is an activity that allows a departing employee and their organization to exchange information ....CONTINUE READING

ExpatriateAn employee who is transferred to work abroad on a long-term job assignment. Expats usually earn more ....CONTINUE READING

EDLIEDLI stands for Employee Deposit Linked Insurance Scheme.It came into being in the year 1976. The intent of the government behind ....CONTINUE READING

Employee Assistance ProgramThe Employee Assistance Program (EAP) is a program offered at workplaces that provides aid to the employees from ....CONTINUE READING

Ex Gratia PaymentEx Gratia means “by virtue of grace”. It is a form of voluntary compensation that organizations pay to ....CONTINUE READING

Factor ComparisonA systematic and scientific comparison, that instead of ranking complete jobs, ranks according to a series of factors ....CONTINUE READING

Five Factor ModelIt is a theory based upon the Big Five personality traits, identified as openness to new experiences ....CONTINUE READING

Floating HolidaysAre paid holidays you give to your employees, but they aren’t tied to specific dates like federal holidays are ....CONTINUE READING

Forced RankingThis is a system of work performance evaluation in which employees are compared against each other ....CONTINUE READING

Functional Job AnalysisFunctional job analysis is a method of gathering specific and detailed job information ....CONTINUE READING

Form 12BForm 12B is an income tax form issued by the Income Tax Department of India which is to be submitted by ....CONTINUE READING

Form 12CForm 10C is a document issued by the Income-tax Department of India which is to be filled in order to ....CONTINUE READING

GamificationGamification refers to a process of making systems, processes or other employment-related activities more enjoyable ....CONTINUE READING

Gender DivideDifferences between women and men in society, used in a range of fields including sociology, politics and economics ....CONTINUE READING

Generation XA demographic cohort born after the post-war baby boomers, tend to use birth dates from the early 1960s to the early 1980s ....CONTINUE READING

Generation ZA demographic cohort containing individuals born between the early 2000s and the present day ....CONTINUE READING

GIG EconomyA gig economy is an economy where organisations rely more on freelancers and independent contractors instead of ....CONTINUE READING

Golden handcuffsThese are contractual clauses that provide financial and non-financial benefits to executives that are forfeited ....CONTINUE READING

GratuityIs given by the employer to his/her employee for the services rendered by him during the period of employment ....CONTINUE READING

GrievanceA grievance is a complaint brought forward by an employee about an alleged violation of law or dissatisfaction with work ....CONTINUE READING

Gross misconductGross misconduct is an action so serious that it calls for the immediate dismissal of an employee ....CONTINUE READING

Gross SalaryGross salary can be defined as the amount of money paid to an employee before taxes and deductions are discounted ....CONTINUE READING

Hawthorne effectthe concept is that employee motivation can be influenced by how aware they are of being observed ....CONTINUE READING

Hierarchy of NeedsA theory proposed by American psychologist Abraham Maslow that categorises human desires ....CONTINUE READING

HR AuditA periodic measurement of human resources effectiveness, conducted by internal staff or ....CONTINUE READING

HR Business PartnerThey are HR professionals who work closely with an organisation’s senior leaders in order to develop an HR strategy ....CONTINUE READING

HR ConsultingSpecialist advice and services provided by a third-party to help businesses maximize the efficiency of their HR operations ....CONTINUE READING

HR GeneralistIt is a professional who oversees the human resources responsibilities and activities of an organisation ....CONTINUE READING

HR SoftwareIt is a software packages designed to automate many of the common HR tasks and free up resources ....CONTINUE READING

Human Capital ManagementThe challenge of recruiting and retaining qualified candidates, and helping new employees fit into an organization ....CONTINUE READING

Human Resources AnalyticsIs 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. ....CONTINUE READING

Human Resource Information SystemIt is a software that is used for carrying out HR processes such as data tracking, self-service for employees, analyzing data ....CONTINUE READING

Human Resource ManagementThe management of an organisation’s workforce with overall responsibility for every aspect of human capital including ....CONTINUE READING

Human Resource Management SystemHRMS refers to a suite of software that organizations use to manage internal HR functions ....CONTINUE READING

Human Resource OutsourcingA contractual agreement between an employer and an external third-party provider whereby the employer ....CONTINUE READING

Incentive Payrefers to giving employees bonuses or other forms of compensation in exchange for going beyond their normal duties ....CONTINUE READING

InductionInduction is the process of introducing a new employee to the company culture and processes with the aim of bringing ....CONTINUE READING

Informal CommunicationInformal communication in the workplace is communication that takes place outside the formal, communication structures ....CONTINUE READING

InternshipAre training programs aimed at younger workers, from school-age students to post-graduates ....CONTINUE READING

Key Performance IndicatorsA Key Performance Indicator is a measurable value that demonstrates how effectively a company is ....CONTINUE READING

Key Result AreasRefers to general areas of outcomes or outputs for which a role, or a combination of roles, is responsible ....CONTINUE READING

Knowledge ManagementKnowledge management is the conscious process of defining, structuring, retaining and sharing the knowledge ....CONTINUE READING

KSAsRefers to knowledge, skills and abilities, often used in the context of the KSAs candidates need to perform a job role ....CONTINUE READING

Management by Objectivemanagement by objectives is a results-driven process that aims to define objectives within an organisation ....CONTINUE READING

Management StylesManagement styles are the principles that underlie the methods, abilities and techniques managers use in ....CONTINUE READING

Management TrainingIt is a training activity that focuses on improving an individual’s skills as a leader and manager ....CONTINUE READING

Matrix OrganizationBusinesses in which employees work in both traditional siloed departments as well as in cross-departmental teams ....CONTINUE READING

Mean wageThe mean wage is the average wage that employees receive for the same work performed during a given period of time ....CONTINUE READING

MentoringMentoring is a system of semi-structured guidance whereby one person shares their knowledge, skills and experience ....CONTINUE READING

Merit PayMerit pay is a system,where one is paid on the basis of the achievement of targets by an individual ....CONTINUE READING

MicromanagementMicromanagement is a negative term that refers to a management style characterised by ....CONTINUE READING

Millennialsalso known as Generation Y or the Net Generation, are the demographic cohort that directly follows Generation X ....CONTINUE READING

NepotismFavouritism to relatives due to the blood relationship rather than making decisions based on standard metrics such as ....CONTINUE READING

Net SalaryIt is also known as take-home salary, is the amount of money that you will receive after all deductions ....CONTINUE READING

Nondisclosure AgreementA contract restricting an employee from disclosing confidential or proprietary information ....CONTINUE READING

Occupational StressThe physiological and physical effects of negative activity in the workplace as a result of many factors including ....CONTINUE READING

Offer LetterIt is used to formally offer a position to a candidate, and provide important information including start date ....CONTINUE READING

OffshoringIt is the process of relocating a business or business process to another country in order to benefit from reduced labour ....CONTINUE READING

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....CONTINUE READING

OnboardingAlso known as organisational socialisation, onboarding is the process by which new hires are emotionally, physically and ....CONTINUE READING

Organizational ChangeOrganisational change refers to the alteration of structural relationships and roles of people in the organization ....CONTINUE READING

Organizational CultureThe values, attitudes, beliefs and behaviors that characterize an organization. It is the unwritten workplace ethos that ....CONTINUE READING

Organizational DevelopmentProcesses and activities that aim to make improvements at the organisational level. Organisational Development is an ....CONTINUE READING

OrientationOrientation is the process of bringing employees up to speed on organisational policies, job roles and responsibilities ....CONTINUE READING

OutsourcingOutsourcing is the business practice of hiring a party outside a company to perform services and create goods ....CONTINUE READING

PayrollDocumentation created and maintained by the employer containing such information as hours worked, salaries ....CONTINUE READING

Payroll SoftwarePayroll software is an application that manages, organizes and automates employee payment ....CONTINUE READING

People Analyticsis the use of employee and candidate's data to understand their impact on business goals and assess the effectiveness of hiring and HR initiatives ....CONTINUE READING

People Operationsis the management of employees, labour and talent in the organisation. It focuses on developing and retaining top talent in the organisation ....CONTINUE READING

Performance Appraisalis a regular review of an employee's job performance and overall contribution to a company ....CONTINUE READING

Performance ImprovementPerformance improvement is a strategy under the umbrella of performance management to help employees ....CONTINUE READING

Performance Improvement PlanIt is also known as a performance action plan, is a tool to give an employee with performance deficiencies ....CONTINUE READING

Performance ManagementIt is a process of linked activities that aim to ensure goals are being met in the most efficient and productive way possible ....CONTINUE READING

Performance Management CycleThis performance management cycle is a cyclical phenomenon in which employees are evaluated throughout the year ....CONTINUE READING

Performance PlanningIt is a sub-area of performance management and is concerned with providing a clear, structured ....CONTINUE READING

Probationary ArrangementsIs terms set between an employer and a new hire. When an employer hires a new person to the company, it would ....CONTINUE READING

Probationary PeriodProbationary periods are defined periods of time that employees are exempt from certain contractual items ....CONTINUE READING

Psychometric Testare designed by psychologists to test a person's mental state, personality and thought processes ....CONTINUE READING

Quality managementA system to make sure that a product or service meets standards of excellence, and that the process by which ....CONTINUE READING

Queen Bee SyndromeIt is defined as a situation where high ranking women in positions of authority treat the women who work ....CONTINUE READING

RecruitmentIt refers to the process of identifying, attracting, interviewing, selecting, hiring and on-boarding employees ....CONTINUE READING

Recruitment SoftwareIt is software tools used by recruiters, talent acquisition professionals, and hiring managers to streamline ....CONTINUE READING

RedundancyTermination of employees for business reasons, such as poor economic conditions. Redundancy can be force or voluntary ....CONTINUE READING

Relieving Letteris a formal letter that is issued to an employee at the time of leaving an organization ....CONTINUE READING

RemunerationThis is the pay or other financial compensation and benefits provided in exchange for an employee's ....CONTINUE READING

Request for proposalis a document that companies use to gather information about services from a potential supplier or vendor ....CONTINUE READING

Restricted HolidaysRestricted holiday means a holiday that is optional, and it is the discretion of the employee whether ....CONTINUE READING

Retention strategyRetention strategies are policies and plans that organisations follow to reduce employee turnover and ....CONTINUE READING

Reverse MentoringAn initiative in the workplace where older employees are mentored by younger employees ....CONTINUE READING

Rewards and RecognitionThis is a system where people are acknowledged for their performance in intrinsic or extrinsic ways ....CONTINUE READING

Right to ManageA ‘right to manage’ is a discretion of managers or leaders to govern a company in the way they see fit ....CONTINUE READING

Risk ManagementRisk management is a process whereby organisations identify and analyse potential business risk and ....CONTINUE READING

Roster ManagementThis refers to schedule management. Schedule is also known as rota or roster. Managing a roster typically includes ....CONTINUE READING

Rotational TrainingRotational training aims to diversify an individual’s understanding, knowledge and skills by rotating them between ....CONTINUE READING

Sabbatical leaveSabbaticals are prolonged absences from the workplace of people to achieve their life goals. ....CONTINUE READING

Sensitivity TrainingA type of emotional training designed to help people become more aware of their intrinsic judgement and prejudices ....CONTINUE READING

Situational LeadershipA management theory stating that effective leadership varies, but is task-relevant, and the most successful ....CONTINUE READING

Skill GapThis is the difference in the skills required on the job and the actual skills possessed by an employee ....CONTINUE READING

Social CollaborationSocial collaboration is the joined-up efforts of multiple stakeholders in pursuit of a common goal ....CONTINUE READING

Social HRThe use of online social media platforms to fulfill HR functions, most notably recruitment, but also including ....CONTINUE READING

Social NetworkingThe building of online communities of people who have common interests. LinkedIn, Facebook and MySpace ....CONTINUE READING

Social RecruitmentThis is concerned with sourcing candidates for jobs via social media channels and social media networks ....CONTINUE READING

Software as a service (SaaS)Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications ....CONTINUE READING

StaffingStaffing is an umbrella term that describes the recruitment, on-boarding, training and positioning of workers within ....CONTINUE READING

Strategic HRMIt refers to aligning human resource management (HRM) with the strategic goals of an organisation ....CONTINUE READING

Strategic PlanningA coherent planning strategy whereby businesses define their values, objectives and needs and then allocate ....CONTINUE READING

Succession planningThis refers to procedures and processes designed to develop internal talent for the purpose of filling leadership ....CONTINUE READING

Summary DismissalSummary dismissal is the immediate termination of an employment contract due to an employee’s behavior ....CONTINUE READING

SuspensionThis is when an employee is sent home from work, usually while receiving full pay. Employers are entitled to suspend ....CONTINUE READING

System ChangeoverSystem changeover is concerned with the smooth shift from one way of doing things to another ....CONTINUE READING

Systemic discriminationThis is also called institutionalized discrimination, refers to a method of discrimination which occurs ....CONTINUE READING

Talent AcquisitionThis refers to the process of identifying and acquiring skilled workers to meet your organisational needs ....CONTINUE READING

Talent ManagementTalent management is a unified strategy designed to help organisations make the best possible use of their human capital ....CONTINUE READING

Talent Management SoftwareTalent management software refers to an integrated tool that focuses on different components of managing HRM....CONTINUE READING

Tangible rewardsMaterial or monetary incentives, or incentives that can be easily translated into a cash value ....CONTINUE READING

TaxAre involuntary fees levied on individuals or corporations and enforced by a government entity ....CONTINUE READING

Taxable IncomeIs the amount of income used to calculate how much tax an individual or a company owes to the government ....CONTINUE READING

Team buildingA philosophy of job design which fosters teamwork to create a work culture that values collaboration ....CONTINUE READING

Total CompensationTotal Compensation is the complete pay package for employees, beyond just salary. This includes all forms of money & perks ....CONTINUE READING

Total Quality ManagementTotal quality management is a method and set of beliefs aimed at continuous improvement of product ....CONTINUE READING

Total RemunerationRefers to a total sum of an employee’s annual compensation package, including both basic pay aka salary ....CONTINUE READING

Training and DevelopmentTraining and development describes the formal, ongoing efforts that are made within organizations to improve ....CONTINUE READING

Training Needs AnalysisIs concerned with addressing skills gaps at the organisational level, group level and the individual level ....CONTINUE READING

Transformational LeadershipTransitional leadership is a style of leadership focused on energy, vision and transformation ....CONTINUE READING

TurnoverIs the percentage of employees in a workforce that leave during a certain period of time ....CONTINUE READING

Unconscious BiasAre social stereotypes about certain groups of people that individuals form outside their own conscious awareness ....CONTINUE READING

Variable PayIs the portion of sales compensation determined by employee performance. It is provided as a type of bonus....CONTINUE READING

Virtual HRRefers to a range of options that connect employees directly with HR systems, allowing them to input data directly ....CONTINUE READING

Voluntary BenefitsVoluntary benefits are employee benefits paid for by the employee rather than the employer ....CONTINUE READING

Wage DriftThe difference between an individual’s basic pay and their total compensation, the latter of which includes financial benefit ....CONTINUE READING

Wellness ProgramsPrograms offered by an employer that are designed to promote health or prevent disease ....CONTINUE READING

Work-life BalanceRefers to the level of prioritization between personal and professional activities in an individual life ....CONTINUE READING

Workforce ManagementIs a term that encompasses all of the processes that a contact center undertakes in order to have the right number of staff ....CONTINUE READING

Workforce PlanningThe assessment of the current workforce in order to predict future needs. This can consist of both demand planning ....CONTINUE READING

Workplace BullyingIn general it is unreasonable or aggressive behavior aimed at a specific group or individual ....CONTINUE READING

Wrongful TerminationIs a situation in which an employee's contract of employment has been terminated by the employer ....CONTINUE READING