CHAPTER 3-HUMAN RESOURCE MANAGEMENT

- Human resources: people a company employs, from its CEO and top managers, the middle
managers throughout its functions, to its nonmanagerial employees.
- Human resource management: set of activities designed to recruit high-quality employees and
then improve their skills and capabilities.
- Recruitment: the process of identifying and attracting a pool of qualified applicants.
- Selection: creating the set of job and company specific criteria that determines which job
applicants are the best match for a particular job and company.
- Human resource planning: process of forecasting the type and number of employees a company
will require in the future to meet the objectives of its business model.
- Job analysis: the process of obtaining detailed information about the tasks and responsibilities
involved in each job in a company.
- Job description: list of the specific tasks, duties, and responsibilities that make up a particular job.
- Job specifications: written list of the required skills, abilities, and knowledge needed to do a
particular job.
- Internal recruitment: a policy of promoting employees who already work for a company.
- External recruitment: a policy of filling advanced job positions with applicants from outside the
company.
- Structured interview: all applicants are asked a series of standard questions.
- Nondirective interviews: questions are open ended to give applicants ample opportunity to reveal
skills, abilities, strengths, and weaknesses.
- Training and Development: the process through which companies increase their employees’ work
skills and knowledge to improve their job performance.
- Training-needs analysis: method of identifying the kinds of employee training that will result in the
greatest performance gains.
- Training gap: a specific type training an employee needs to acquire.
- On-the-job training: training employees receive while doing their Jobs.
- Performance appraisal: process of evaluating the contributions an employee has made toward a
company’s functional and corporate-wide goals.
- Performance feedback: the communication of performance appraisal information to employees to
influence their future performance levels.
- 360-degree performance appraisal: process of using multiple sources of information to appraise
an employee’s performance.
- Formal appraisals: appraisals conducted on a regular basis to provide employees with ongoing
performance feedback.
- Informal appraisals: appraisals that take place as managers and subordinates meet from time to
time to discuss important work issues.
- Pay: monetary rewards, such as wages, bonuses, and salaries, associated with a particular job.
- Benefits: monetary rewards, such as paid health care, life insurance, sick and vacation pay, and
pensions, employees receive because they are a member of a company.
- Pay structure: the relative pay and benefits received by employees doing different types of jobs or
jobs at different levels in a company’s hierarchy.
 CHAPTER 3-HUMAN RESOURCE MANAGEMENT

- Pay level: the average salary a company pay its employees compared to other companies in its
industry.
- Incentive pay: the extra rewards employees receive when they achieve specific work goals.
- Piecework plans: pay plans that link the pay employees receive to the number of units of a
product an employee makes.
- Commission systems: pay plans that link the pay employees receive to the amount of revenue
they earn by selling a company’s products.
- Merit pay: a pay system that links superior performance directly to higher permanent rewards,
such as a certain percentage increase in salary.
- Bonus pay: a one-time reward employees receive for accomplishing a specific goal.
- Profit sharing plans: pay plans that reward employees based on the profit a company earns in a
particular period.
- Employee stock ownership plan: plan that allows employees to buy a company’s shares at below-
market prices.
- Organization bonus systems: the one-time rewards employees receive if a company achieves cost
savings, quality increases, and so on, in a specified time.
- Labor relations: process of establishing rules and practices between a company and its employees
that specify how human resources should be employed and rewarded.
- Trade unions: organizations that represent the interests of employees who hold similar types of
jobs in a particular industry.
- Industrial conflict: - the clash that occurs when workers and unions attempt to obtain a greater
share of a company’s profits at the expense of other stakeholders.
- Working-to-rule: workers perform their jobs exactly as specified in their employment contracts
but not more.
- Lockout: when managers decide to shut down a company’s operations until workers are willing to
accept the employment conditions being offered to them.
- Strike: situation that arises when workers refuse to do their jobs in an attempt to bring the work
process to a halt.
- Collective bargaining: process through which union representatives and managers negotiate a
binding labour agreement over work-related issues, such as pay, benefits, and grievance
procedures.
- Integrative bargaining solution: a “win-win” solution that allows both parties to benefit from the
labour contract agreed upon.
- Attitudinal structuring: the attempt by negotiators on each side to influence each other’s attitudes
during the bargaining process
- Grievance procedures: labour-contract rules used to resolve labour disputes between companies
and their employees.
- Mediation: a conflict resolution method that involves the use of a neutral third party, or mediator,
to help labour and management resolve their differences and reach an agreement.
- Arbitration: a conflict resolution method that involves the use of a third party to negotiate and
impose a binding agreement on labour and management