HR Glossary

Flexible staffing: The practice of utilizing temporary employees, independent contractors or part-time employees to fill vacancies instead of hiring a traditional full-time permanent employee workforce.
• Flextime: Variable work hours requiring employees to work a standard number of core hours within a specified period of time, allowing employees greater flexibility in their starting and ending times.
• Focus group: A small group of individuals who are interviewed through structured facilitator-led discussions in order to solicit opinions, thoughts and ideas about a particular subject or topic area.
• Forced-choice: In test construction, used to define multiple-choice tests or questionnaires requiring the testee to choose an answer from a collection of possible answers. Also refers to a performance appraisal strategy where the appraisal is divided into several sections, and the rater is then provided with a few performance descriptors for each section and asked to select the most and least characteristic statement.
• Forced distribution: An appraisal rating method intended to prevent rater errors by requiring the rater to force ratings into a bell-shaped curve.
• Forced ranking: A performance appraisal system where raters are asked to identify a certain percentage of employees who are top performers ready for advancement and those employees falling into the bottom percentage who must improve or leave the organization.
• Forecasting: A business analysis conducted in order to assess what future trends are likely to happen, especially in connection with a particular situation, function, practice or process that is likely to affect the organization’s business operations.
• Fractional bargaining: Bargaining that takes place at a department or unit level which may lead to an unwritten consensus to ignore certain provisions of a collective bargaining agreement.
• Freedom of Information Act (FOIA) of 1966: A federal law providing guidelines for access and disclosure of government documents and materials to the general public.
• Fringe benefit: Employment benefits granted to employees in addition to their current base salary or wages (i.e., cash, merchandise, services, health insurance, pension plans, holidays, paid vacations, etc.).
• Full-time equivalent (FTE): A value assigned to signify the number of full-time employees that could have been employed if the reported number of hours worked by part-time employees had been worked by full-time employees instead.
• Fully insured plan: A benefit plan where the employer contracts with another organization to assume financial responsibility for the enrollees’ medical claims and for all incurred administrative costs.
• Functional team: A group of employees who are responsible for a particular function within the organization.
• Gag clause: Refers to the employment contract restrictions used as a means of protecting the organization’s trade secrets or proprietary information.
• Gain sharing plan: A group incentive plan used to enhance productivity by sharing with a group a percentage of the gains the organization realizes from specific group efforts.
• Garnishment: A court order requiring an employer to withhold a certain percentage from an employee’s pay in order to settle a debt with a creditor.
• Generalist: An individual who possesses the capabilities to perform more than one diversified function, rather then specializing in or having responsibility for one specific function.
• Generation I: The term used to describe children born after 1994 who are growing up in the Internet age.
• Generation X: The term used to describe individuals born between 1965 and 1980.
• Generation Y: The term used to describe individuals born between 1985 and the present.
• Genetic-based discrimination: The practice of requesting or requiring genetic testing information during the hiring process or using genetic testing information to base any other employment decisions or actions.
• Geographical differential: The variance in pay established for same or comparable jobs based on variations in labor and costs of living among other geographic regions.
• Glass ceiling: Used to describe the invisible barrier keeping women from advancing into executive-level positions.
• Glass Ceiling Act of 1991: An act meant to raise public awareness regarding the underutilization of females and minorities in certain positions within the U.S. workforce and eliminate barriers preventing advancement.
• Globalization: The term used to describe increasingly mobile organizations that are performing their operations in foreign countries.
• Global compensation: Pay practices relating to employees who are working on assignments in international locations. A service premium and additional incentives are often included in the compensation package to offset differences in taxes and cost of living.
• Global relocation: The process of transferring an individual’s residence from the United States to a foreign country for the purpose of completing an international job assignment.
• Goal: A statement outlining the long-term results, accomplishments or objectives an organization seeks to attain.
• Goal setting: The process of setting and assigning a set of specific and attainable goals to be met by an individual, group or organization.
• Gold-collar employee: The term used to describe individuals such as scientists, engineers and other highly s****ed employees who are in high demand and short supply.
• Good -faith bargaining: The principles applied to conducting negotiations where two parties meet and confer at reasonable times with open minds and the intention of reaching an agreement.
• Good faith effort: The effort and action an organization puts forth to correct goals and specific problem areas.
• Graded vesting: A schedule used for vesting purposes, in which the vesting occurs over a period of five to 15 years.
• G****vine: An informal communication channel used to transmit information or rumors from one person to another.
• Green card: A card issued in accordance with immigration laws to an alien granting him or her the right to become a lawful permanent resident of the United States, including the right to work legally.
• Greenfield Operation: A new operation that is built from “the ground up”.
• Grievance: A formal complaint or allegation by an employee or group of employees made to unfair treatment or violation of a union contract.
• Grievance procedures: The process and guidelines to be followed by employees, management or the union when resolving differences or conflicts.
• Gross product margin: The difference between the price a certain product is sold at and the cost of producing the product.
• Group dynamics: The social manner in which people interact with each other within a group.
• Group interview: An interviewing method where a prospective employee is interviewed by a small group of his or her peers.
• Group outplacement: Used as a cost-cutting measure, it incorporates the same principles as individual outplacement benefits (i.e., providing job counseling, training and other services to displaced employees) with the exception that counseling is performed on a group vs. individual basis.
• Halo/horn effect: A form of interviewer bias, occurring when the interviewer rates or judges an individual based on the individual’s positive or strongest traits, allowing their overall perception of the person to overshadow any negative traits. Referred to as the “halo effect” when it works in the candidate’s favor or the “horn effect” when it works against the candidate.
• Handicapped individual: Based on the definition provided by the Rehabilitation Act of 1973, Section 504, an individual is "handicapped" if he or she has: a mental or physical impairment which substantially limits one or more of such person's major life activities; has a record of such; is regarded as having such impairment. The Americans with Disabilities Act of 1990 amended this definition to exclude individuals who are currently engaged in the use of illegal drugs. Individuals who are rehabilitated drug users or engaged in a supervised drug rehabilitation program and are no longer using drugs are also covered by the definition. The term “individual with handicaps” does not include any individual whose current use of alcohol prevents such an individual from performing the duties of the job in question or whose employment, by reason of such current alcohol abuse, would constitute a direct threat to property or the safety of others.
• Harassment: Conduct or actions, based on race, religion, ***, national origin, age, disability, military membership or veteran status, severe or pervasive enough to create a hostile, abusive or intimidating work environment for a reasonable person. State laws may further define harassment to include additional protections, such as ***ual orientation, marital status, trans***ualism or cross-dressing, political affiliation, criminal record, prior psychiatric treatment, occupation, citizenship status, personal appearance, "matriculation," tobacco use outside work, Appalachian origin, receipt of public assistance or dishonorable discharge from the military.
• Hawthorne effect: A term produced as a result of an experiment conducted by Elton Mayo whereby he concluded that expressing concern for employees and treating them in a manner that fulfills their basic human needs and wants will ultimately result in better performance.
• Hazard Communication Standard of 1988: An occupational safety and health standard intended to comprehensively address the issue of evaluating the potential hazards of chemicals and communicating information concerning hazards and appropriate protective measures to employees. Such communication may include, but is not limited to: developing and maintaining a written hazard communication program for the workplace, including lists of hazardous chemicals present; labeling of containers of chemicals in the workplace, as well as of containers of chemicals being shipped to other workplaces; preparation and distribution of material safety data sheets to employees; and development and implementation of employee training programs regarding hazards of chemicals and protective measures.
• Hazard pay: A special payment made in addition to an individual’s salary for accepting assignments at locations where there is threat of physical danger or for performing positions that are hazardous to the individual’s health and well-being.
• Head count: Refers to average number of people employed directly by the company on a full-time and part-time basis.
• Health Insurance Portability and Accountability Act (HIPAA )of 1996: The Act was enacted to make health insurance more "portable" from one employer to another. The law mandates procedures for both new hires and for existing employees who are leaving the company. Employees who are new to a company can use evidence of previous health care coverage that is provided by their former employer to reduce or eliminate the new employer's preexisting condition requirements. Employees who are leaving a company must be provided a certificate of prior creditable health care coverage to use for this purpose. The law includes other provisions regarding restrictions on preexisting conditions, special enrollment rights and privacy rights and protections.
• Health care flexible spending account (FSA): A benefit plan designed to allow employees to set aside pre-tax dollars to pay for eligible medically related expenses, such as medical, vision or dental exams, copays and deductibles, as well as other out-of-pocket expenses.
• Health savings accounts (HSA): A tax-free account that can be used by employees to pay for qualified medical expenses. Contributions do not have to be spent the year they are deposited. Money in the account earns interest and accumulates tax free, so the funds can be used now and in the future. If an employee leaves the job, he or she can take the account with him or her and continue to use it to pay for qualified healthcare expenses. To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not eligible for Medicare and can’t be claimed as a dependent on someone else’s tax return.
• Hidden disabilities: Disabilities which are not of a visible nature, such as learning disorders, alcohol abuse, depression, etc.
• Hierarchy of needs: A psychology theory ascribed to Abraham H. Maslow, in which he proposed that people will constantly seek to have their basic needs (sleep, food, water, shelter, etc.) fulfilled and that such needs ultimately determine behavior.
• Highly compensated employee: For the purposes of retirement plans, a highly compensated employee is defined by the IRS as an employee who owns 5% or more of a company or receives compensation in excess of a predetermined amount. To qualify for tax advantages, retirement plans cannot be overly favorable to highly compensated employees. The definition of HCE is crucial in determining whether plan benefits are allocated to HCEs in a discriminatory manner compared to non-highly compensated employees.
• Home-based worker: An employee who works from a home office rather than at a physical workspace at the employer’s location.
• Honesty/integrity testing: Tests used to assess an individual’s propensity for dishonest conduct or behavior (i.e., stealing or lying).
• Horizontal integration: Also known as job rotation, it is a job enlargement method whereby employees are shifted between various comparable jobs in an effort to prevent boredom and boost morale.
• Horizontal organization: A flat organizational structure that consists of fewer hierarchal levels. Such organizational structures often rely on the use of cross-functional teams.
• Hostile environment harassment: ***ual or other discriminatory conduct that is so severe and pervasive that it interferes with an individual’s ability to perform the job, creates an intimidating, offensive, threatening or humiliating work environment or causes a situation where a person’s psychological well-being is adversely affected.
• Hostile takeover: A leveraged purchase of a company that goes against the wishes of the target company's management and board of directors.
• Hot-desks: A method of saving office space in which workers do not have their own desk but share the same desk at different times during the day or week.
• Hoteling: The practice of not assigning offices on a permanent basis to individuals who telecommute. Instead, offices are assigned by calling in and reserving an office or workstation in advance.
• Huddle group: A training method whereby participants are divided into small groups, given a specific problem to handle within a short period of time (typically less then 10 minutes) and then report their findings back to the larger collective group.
• Human capital: The collective knowledge, s****s and abilities of an organization’s employees.
• Human resources: The function dealing with the management of people employed within the organization.
• Human resource auditing: The process of assessing HR programs and services to determine effectiveness or efficiency.
• Human resource development: A set of planned activities intended to provide the organization with the s****s it requires to meet current and future business demands.
• Human resource information system (HRIS): A computer database used to gather, store, maintain and retrieve relevant employee and HR-related information.
• Human resource management: The formal structure within an organization responsible for all the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people.
• Human resource management system: A software application combining various human resource functions, such as benefits, payroll, recruiting, training, etc., into one package.
• Human resource metrics: Measurements used to determine the value and effectiveness of HR strategies. Typically includes such items as cost per hire, turnover rates/costs, training and human capital ROI, labor /productivity rates and costs, benefit costs per employee, etc.
• Human resource planning: The process of anticipating future staffing needs and ensuring that a sufficient pool of talent possessing the s****s and experience needed will be available to meet those needs.
• Hybrid organization: An organization whose structure is comprised of both vertical and horizontal models.
• Hygiene theory: Studies conducted by Frederick Hertzberg used to better understand employee attitudes and motivation and what factors cause job satisfaction and dissatisfaction. Also referred to as the Motivation-Hygiene theory.
• Icebreaker: A beginning exercise, game or simulation used as a means to reduce tension and create a more relaxed atmosphere during training programs.
• Identity theft: Regulated by federal and state statutes, identity theft occurs when a person fraudulently obtains and uses another person's personal information, such as name, Social Security number, credit card number, etc., without that person’s authorization, consent or knowledge.
• Illegal immigrant/alien: An individual who is not a U.S. citizen and who has entered the United States without proper documentation and without complying with legally required U.S. immigration and naturalization procedures.
• Image consulting: The practice of counseling and advising individuals regarding items such as personal appearance, dress, manner of speaking or style.
• Immigration Reform and Control Act (IRCA) of 1986: The Immigration Reform and Control Act (IRCA) prohibits the employment of individuals who are not legally authorized to work in the United States or in an employment classification that they are not authorized to fill. The IRCA requires employers to certify (using the I-9 form) within three days of employment the identity and eligibility to work of all employees hired. IRCA also prohibits discrimination in employment-related matters on the basis of national origin or citizenship.
• Impairment: A physical or mental condition resulting from injury or illness, which diminishes an individual’s faculties such as ability to hear, see, walk, talk, etc.
• Impatriate: Foreign nationals who are hired by U.S. employers under the H1-B visa program to fill highly s****ed vacancies due to a labor shortage of s****ed U.S. applicants.
• Incentive pay: Additional compensation used to motivate and reward employees for exceeding performance or productivity goals.
• Incentive pay plan: A plan providing additional compensation intended to serve as an incentive for excellent performance, exceeding productivity goals or standards, as well as other contributions in accordance with prescribed goals or standards.
• Incentive stock option: An employee stock option plan that allows options to be granted or exercised on a tax-deferred basis. All gains on options are taxed only when the holder sells the stock.
• Incidence rate: Indicates the number of workplace injuries/illnesses and the number of lost work days per 100 employees.

• In-company/in-house counseling: An EAP program which is conducted by a trained professional counselor hired as an employee by the employer to handle all aspects of the company’s EAP.
• Independent contractor: A self-employed individual who performs a service for an employer under an express or implied agreement and who is not subject to the employer's control, or right to control, regarding the method and means in which the service is performed.
• Indirect compensation: Compensation that is not paid directly to an employee and is calculated in addition to base salary and incentive pay (i.e., health/dental/vision insurance, vacation, retirement benefits, educational benefits, relocation expenses, etc.).
• Indirect costs: Expenses, such as fringe benefits, overhead, utilities, rent or equipment, that have been incurred for the purpose of common general activities and cannot be identified or charged directly to the production of a specific project.
• Indirect labor: Used to define labor that is necessary to support the manufacturing of a product, but is not directly involved with the actual process of manufacturing the product.
• Induction program: Programs designed to introduce and acclimate newly hired employees into the organization.
• Industrial democracy: The involvement and empowerment of employees in decision-making within the organization by such methods as joint labor-management committees, work teams, quality circles, employee task forces, etc.
• Industrial psychology: Applied psychology concerned with the study of human behavior in the workplace and how to efficiently manage an industrial labor force and problems encountered by employees.
• Industrial rehabilitation: Programs designed to get employees who have been injured on the job back into the workforce and off workers’ compensation.
• Informed consent: An individual’s agreement to allow something to transpire subsequent to the individual having been informed of associated risks involved and alternatives.
• Injunction: A court-issued order requiring a party to either do or refrain from doing a certain act.
• Inpatriate: A foreign national transferred to the United States on a long-term assignment.
• In placement counseling: A form of employee counseling geared toward acclimating recently promoted or transferred employees into their new positions or providing current employees guidance on the steps they need to take to be considered for promotion or transfer to alternative positions.
• In sourcing: Refers to the process of internally administering employee benefit plans or other programs, as opposed to utilizing the services of a third-party provider.
• Instructor-to-trainee ratio: The maximum number of trainees assigned per trainer.
• Intangible rewards: Nonmonetary reinforcing, such as praise, given to an employee in recognition of a job well done or a particular achievement.
• Integrity testing: A pre-employment psychological assessment tool used to gauge an applicant’s honesty.
• Intellectual property: Property which is protected under federal law, including trade secrets, confidential or proprietary information, copyrightable or creative works, ideas, patents or inventions.
• Intelligence quotient (IQ): The measure of an individual’s cognitive abilities, as measured by an intelligence test.
• Intermittent/reduced schedule leave: Under FMLA, intermittent and reduced schedule leave is used to describe leave that is not taken on a consecutive basis but rather taken in increments of days or hours.
• Internal audit: The process of conducting an in-house examination of one or more of an organization’s processes, functions, programs, etc.
• Internal recruitment: The practice of assessing the employer’s current workforce to determine whether or not current employees possess the required s****s or qualifications to fill specific vacancies either through promotion or transfer.
• Internal temporary pool employee: A pool of former employees who are called upon and hired to fill temporary staffing needs on an as-needed basis.
• Internship: A partnership between an organization and an educational institution, whereby students are hired by an employer for a specified period of time into a professional or technical position that correlates with their area of study in order to provide them with hands-on experience and prepare them for the workforce.
• Interpersonal communications: Refers to the process of communicating with another person or group to express feelings, thoughts or information by means of physical gestures or verbal exchanges.
• Interpretive Guidelines on ***ual Harassment: EEOC issued guidelines defining ***ual harassment and the employer’s responsibility for maintaining a workplace environment which is free from ***ual harassment or intimidation.
• Intersectional discrimination: Discrimination not just because of one protected trait (e.g., race), but also because of the intersection of two or more protected bases (e.g., race and ***), i.e., Title VII prohibits discrimination against African American women even if the employer does not discriminate against White women or African American men.
• Interview: Used during the selection process, an interview is a face-to-face meeting with an individual or group, which involves asking questions to elicit information from the applicant to determine whether or not an applicant is suitable for a position of employment.
• Interview to offer ratio: The ratio of the numbers of individuals interviewed to actual offers extended.
• Intrinsic reward: A reward given to an employee for achievement of a particular goal, objective or project.
• ISO 9000: Developed by the International Organization for Standardization (ISO), it is a set of standards for quality management systems that is accepted around the world. Organizations that conform to these standards can receive ISO 9000 certification. The standard intended for quality management system assessment and registration is ISO 9001. The standards apply uniformly to organizations of any size or description.
• Job Accommodation Network (JAN): A service of the Office of Disability Employment Policy (ODEP) of the U.S. Department of Labor. JAN's mission is to facilitate the employment and retention of workers with disabilities by providing employers, employment providers, people with disabilities, their family members and other interested parties with information on job accommodations, self-employment and small business opportunities and related subjects.
• Job aids: A document consisting of information or instructions used to guide the user on how to perform a task correctly.
• Job analysis: The systematic process of gathering and examining and interpreting data regarding the specific tasks comprising a job.
• Job bank: Refers to pools of retired employees who are used by employers to fill part-time or temporary position needs.
• Job classification: A method of evaluation used for job comparisons, which groups jobs into a prearranged number of grades, each having a class description and a specified pay range.
• Job codes: Identification numbers assigned to specific jobs or job tasks.
• Job description: A written description of a job which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.
• Job displacement: Occurs when an employee’s position is eliminated.
• Job enlarging: A method used to keep workers motivated, the process involves adding new tasks which are of the same level of s**** and responsibility to a job.
• Job enrichment: The practice of adding tasks to a job as a means of increasing the amount of employee control or responsibility.
• Job evaluation: Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job.
• Job grade: The group into which jobs of the same or similar worth are placed for determining appropriate rates of pay.
• Job offer letter: A formal written document that is provided by an employer to a candidate selected for employment which outlines information regarding the employment terms, such as the date employment is to commence, the position the individual is being hired to perform, the agreed upon salary, benefits to be provided, etc. The employer usually requires the candidate to sign and return the letter as a formal acceptance of employment.
• Job posting: The method of advertising for vacancies internally by posting a notice of the opening on a bulletin board, etc.
• Job pricing: The process of determining pay rates for jobs within the organization by analyzing industry or regional salary survey data in order to establish appropriate job pay rates.
• Job ranking: The process of ranking all jobs within the organization in order of importance or worth.
• Job redesign: The process of restructuring a job by adding, changing or eliminating certain tasks or functions in order to make the job more satisfying or challenging.
• Job reference immunity statutes: Laws enacted in several states meant to provide employers with protection from liability when disclosing information regarding current or former employees. Typically for an employer to be immune from liability the reference provided must be factual and truthful, based on documented information and not be given with malicious intent.
• Job-relatedness: The requirement that an employer be able to demonstrate that a particular action, policy or job requirement is related to the actual job.
• Job rotation: The practice of transferring employees for temporary periods of time between varying jobs within an organization. Often used as a training and development method.
• Job sampling: During the selection process, the term refers to the practice of observing and measuring how an applicant actually performs certain selected job tasks.
• Job satisfaction: Used to define how an employee feels regarding their job, work environment, pay, benefits, etc.
• Job shadowing: A temporary, unpaid work experience opportunity where students learn about a particular job (typically in a field of interest) by walking through the work day as a shadow to an employee.
• Job sharing: The practice of two different employees performing the tasks of one full-time position.
• Job title: A specific name given to a particular job which is used to distinguish that job from other jobs within the organization.
• Johari Window: A leadership disclosure and feedback model which can be used in performance measurement and features the four quadrants (windows) of “knowing”. Quadrant I – represents the area of free activity or public area, refers to behavior and motivation known to self and known to others. Quadrant II – represents the blind area, where others can see things in ourselves of which we are unaware. Quadrant III – represents the avoided or hidden areas, represents things we know but do not reveal to others, (e.g., a hidden agenda, or matters about which we have sensitive feelings). Quadrant IV - represents the areas of unknown activity, in which neither the individual nor others are aware of certain behaviors or motives.
• Joint employment: The relationship between a Professional employer organization or employee leasing firm and an employer, based on a contractual sharing of liability and responsibility for employees.
• Joint/labor management committee: A panel comprised of management and union representatives whose purpose is to address problems, resolve conflicts and build on relationships.
• Just cause: A legal term used as the guiding principle utilized by employers whenever engaging in some form of corrective action or discipline for employees. Just cause is determined by examining the reasonableness of the discipline according to a set of guiding principles (i.e. was the employee adequately forewarned that the particular behavior would result in discipline or termination; management conducted a fair and objective investigation of the facts prior to administering any discipline; rules, orders, and disciplinary action must be applied in a consistent and non-discriminatory manner; discipline must be reasonably related to the seriousness of the offense and the employee’s past work record, etc.)
• Key employee: Under FMLA statutes, a key employee is defined as a salaried employee who is among the highest-paid 10% of all workers employed by the employer within a 75-mile radius. Under ERISA, a key employee is defined as a plan participant who is a highly compensated officer or company owner.
• Key performance indicators (KPI): Key Performance Indicators are quantifiable, specific measures of an organization’s performance in a certain area(s) of its business. . The purpose of KPI’s is to provide the company with quantifiable measurements of things it has determined are important to the organizational or business long-term goals and critical success factors . Once uncovered and properly analyzed, KPI’s can be used to understand and improve organizational performance and overall success. Also referred to as Key success indicators.
• Key result areas: Used to establish standards and objectives, key result areas are the chief tasks of a job identified during the job evaluation process.
• Knowledge assets: The parts of an organization’s intangible assets that relate specifically to knowledge, expertise, information, ideas, best practices, intellectual property and other capabilities.
• Knowledge-based pay: A salary differentiation system that bases compensation on an individual’s education, experience, knowledge, s****s or specialized training. Also referred to as s****-based pay.
• Knowledge broker: The individual who facilitates the creation, sharing and use of knowledge in an organization by linking individuals with providers.
• Knowledge Integration: Knowledge integration is broadly defined as the assimilation, extraction, transformation and loading of information from disparate systems into a single more unified, consistent and accurate data store used for evaluating, manipulating and reporting information.
• Knowledge management: The process of creating, acquiring, sharing and managing knowledge to augment individual and organizational performance.
• Knowledge mapping: A process used to create a summation of the knowledge an organization will need in order to support its overall goals, objectives, strategies and missions.
• Knowledge, s****s and abilities (KSA’s): The attributes required to perform a job; generally demonstrated through qualifying experience, education or training.
• Knowledge worker: Employees whose job functions are primarily of an intellectual nature.
• Labor certification: Labor certification is a statement from the U.S. Department of Labor (DOL) that a particular position at a particular company is "open" because no U.S. workers who satisfy the minimum requirements for the job are available. Alien labor certification programs are generally designed to assure that the admission of aliens to work in the United States on a permanent or temporary basis will not adversely affect the job opportunities, wages and working conditions of U.S. workers.
• Labor force: The number of employed individuals in the civilian workforce and armed services.
• Labor law posting: Federal and state regulations requiring employers to post in conspicuous places a variety of labor law posters, including, but not limited to, information regarding employee rights under EEO, FMLA, OSHA, ADA, FLSA, as well as other labor laws.
• Labor-management contract: A binding agreement governing wages, benefits, representation rights and other working conditions between a labor union and management.
• Labor productivity: The correlation between a given output and the percentage of labor time used to produce the output.
• Layoff: A temporary termination of employees, or the elimination of jobs, during periods of economic downturn or organizational restructuring.
• Leadership: The process, by which an individual determines direction, influences a group and directs the group toward a specific goal or organizational mission.
• Leadership development: Formal and informal training and professional development programs designed for all management and executive-level employees to assist them in developing the leadership s****s and styles required to deal with a variety of situations.
• Learning Style: Learning styles are defined, classified, and identified in various ways. Broadly speaking, they are overall patterns that provide direction to learning and teaching. Learning style can also be described as a set of factors, behaviors, and attitudes that facilitate learning for an individual in a particular situation.
• Leave sharing: A leave program allowing employees to donate unused sick leave to a coworker who has exhausted all available sick leave and is out due to a long-term illness or injury.
• Leave stacking: Used to define the practice of scheduling leave under FMLA in such a manner that the employee’s leave allowance for two consecutive calendar years is uninterrupted. Typically occurs when an employer uses the calendar-year method for determining the 12-month period under FMLA.
• Libel: Defaming or harming an individual’s reputation in writing.
• Litigation: A legal proceeding occurring in a federal or state court of law to determine and enforce legal rights.
• Living wage: A wage rate that is sufficient for a worker and his or her family to exist comfortably.
• Localization: The strategy of applying locale-specific terminology and data to a specific product or application in order to meet the language, cultural and other requirements of a specific market.
• Lockout/tagout rule: An OSHA standard helping safeguard employees from hazardous energy while they are performing service or maintenance on machines and equipment. The standard identifies the practices and procedures necessary to shut down and lock out or tag out machines and equipment, requires that employees receive training in their role in the lockout/tagout program and mandates that periodic inspections be conducted to maintain or enhance the energy control program.

• Long-term care insurance: An insurance plan that provides coverage for individuals with long-term illnesses or disabilities by paying in whole or in part for long-term medical and non-medical care services.
• Lost workdays: Refers to the particular number of days an employee is absent from work due to an injury or illness or the number of days which the employee is on restricted duty.
• Lump-sum payment: A fixed negotiated payment that is not typically included in an employee’s annual salary; often times given in lieu of pay increases.
• Malcolm Baldridge National Quality Award: The Baldridge Award is given by the President of the United States to businesses—manufacturing and service, small and large—and to education and health care organizations that apply and are judged to be outstanding in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; human resource focus; process management; and results.
• Management by Objective (MBO): A performance appraisal strategy in which subordinates determine and set goals for themselves based on the overall goals and objectives for the organization.
• Management consultant: An individual who works independently to assist and advise clients with managerial responsibilities regarding various organizational issues.
• Management development: Training and developmental programs designed to provide new managers and existing managers with the resources needed to become more effective in their roles.
• Mandatory Retirement Age Law of 1978: A statute which prohibits (with the exception of exempted employees and positions) employers from having policies or practices that call for mandatory retirement of employees under the age of 70.
• Manpower planning: The process of assessing an employer’s current workforce content and composition in order to anticipate future staffing requirements needed to meet business goals and requirements.
• Material safety data sheet (MSDS): Required by OSHA, an MSDS is a detailed description of each hazardous chemical located in the workplace, which includes information regarding potential health risks, symptoms and treatment measures to be taken if exposure occurs.
• Matrix organization: An organizational structure where employees report to more than one manager or supervisor.
• Mean wage: The average wage for a worker in a specified position or occupation, which is determined by adding together the total wages for all incumbents in a specific position or occupation and then dividing it by the total number of incumbents.
• Median: The middle value in a series of values arranged in rank order.
• Median wage: The margin between the highest paid 50 percent and the lowest paid 50 percent of workers in a specific position or occupation.
• Mediation: A private negotiation and decision-making process in which a mediator assists individuals or groups in finding a resolution to a particular issue or conflict.
• Medical savings account (MSA): A savings account funded by employees through pre-tax contributions; can be used to pay for co-payments, deductibles or medical expenses not covered by a health insurance benefit plan.
• Medical examinations/testing: A medical evaluation conducted on a post-offer basis by a company physician or an independent physician to ascertain whether or not a candidate is able to perform the physical requirements of a particular job.
• Medical savings accounts (MSA): Savings accounts designated for out-of-pocket medical expenses. In an MSA, employers and individuals are allowed to contribute to a savings account on a pre-tax basis and carry over the unused funds at the end of the year. One major difference between a Flexible Spending Account (FSA) and a Medical Savings Account is the ability under an MSA to carry over the unused funds for use in a future year, instead of losing unused funds at the end of the year. Most MSAs allow unused balances and earnings to accumulate. Unlike FSAs, most MSAs are combined with a high-deductible or catastrophic health insurance plan.
• Medicare: A health insurance program administered by the Social Security Administration which is broken into two distinct categories: 1) Medicare Part A helps with hospital costs; and 2) Medicare Part B requires a monthly fee and is used to pay medical costs for people 65 years of age and older, some disabled people under 65 years of age and people with end-stage renal disease (permanent kidney failure treated with dialysis or a transplant).
• Mental Health Parity Act (MHPA) of 1996: Prohibits group health plans and insurance companies that offer mental health benefits from setting annual or lifetime limits on mental health benefits that are lower than those limits set for any other condition.
• Mentoring: A career development method whereby less experienced employees are matched with more experienced colleagues for guidance either through formal or informal programs.
• Merger: The joining of two or more different organizations under one common owner and management structure.
• Metrics: A measure used to determine the effectiveness and value of implemented HR programs in increasing performance and profits.
• Merit pay: A compensation system whereby base pay increases are determined by individual performance.
• Minimum qualifications: The attributes of a job description which establishes a baseline for meeting the qualifications for a particular position.
• Minimum wage: The smallest hourly wage that an employee may be paid for all hours worked, as mandated by federal or state law.
• Minority business enterprise: A small business enterprise that is at least 51 percent owned by one or more minorities or, in the case of a publicly owned business, at least 51 percent of all classes or types of the stock is owned by one or more minorities and whose management and daily business operations are controlled by one or more minorities.
• Mission statement: A statement illustrating what the company is, what the company does and where the company is headed.
• Moonlighting: Working one or more full- or part-time jobs in addition to an individual’s regular full-time job.
• Myers-Briggs Type Indicator: A psychological test used to assess an individual’s personality type.
• North American Free Trade Agreement (NAFTA): An agreement reached by the United States, Canada and Mexico that instituted a schedule for the phasing out of tariffs and eliminated a variety of fees and other hindrances to encourage free trade between the three North American countries.
• National Labor Relations Act (NLRA) of 1947: The National Labor Relations Act (NLRA), passed in 1935, provides that all employees have the right to form, join and assist labor organizations and to bargain collectively with their employers.
• Naturalization: The process by which an alien is made a citizen of the United States of America and relinquishes citizenship to any other country.
• Needs analysis: A method of analyzing how employee s**** deficits can be addressed through current or future training and professional development programs, as well as determining the types of training/development programs required and how to prioritize training/development.
• Negligent hiring: A claim made against an employer based on the premise of an employer’s obligation to not hire an applicant the employer knew or should have known was unsuitable and likely to behave inappropriately toward other employees.
• Negligent referral: Negligent referral is defined as the failure of an employer to disclose complete and factual information about former or current employee to another employer.
• Negligent retention: The act of failing to take appropriate disciplinary action (i.e., termination) against an employee the employer knew or should have known was unsuitable.
• Nepotism: Favoritism shown to relatives by individuals in a position of authority, such as managers or supervisors.
• Netiquette: Refers to Internet use rules of conduct, involving respecting others' privacy and not doing anything online that is offensive, annoying or frustrating to other people.
• Newborns’ and Mothers’ Health Protection Act (NMHPA) of 1996: Requires a minimum length of hospital confinement in conjunction with childbirth. This requirement applies to health plans and health insurance companies that provide hospital stays for childbirth in their policies. The law provides that coverage for a hospital stay following a normal delivery may not be limited to less than 48 hours for both the mother and newborn, and for a cesarean section not less than 96 hours.
• Nominal group technique: A consensus planning tool used to identify the strengths of an organization, department or division, whereby participants are brought together to discuss important issues, problems and solutions.
• Non-compete agreement: A contract restricting an employee from obtaining employment with a competitor within a specified industry, distance and/or time frame.
• Nondisclosure agreement: A contract restricting an employee from disclosing confidential or proprietary information.
• Nondiscrimination: The practice of not discriminating against members of disadvantaged or protected groups in hiring practices, policies, benefits or conditions of employment.
• Nonexempt employee: An employee who does not meet any one of the Fair Labor Standards Act exemption tests and is paid on an hourly basis and covered by wage and hour laws regarding hours worked, overtime pay, etc.
• Nontraditional employment: Used to define occupations or specific fields where women typically comprise less than 25 percent of the workforce.
• Normative forecasting: A method of projecting future needs in order to determine what developments will be required to meet those needs.
• Notice: In wrongful discharge cases, this doctrine is used to determine whether or not an employer gave an employee adequate advanced notice of the potential consequences if a specific behavior or conduct was not improved upon.
• Objective: A specification of what is to be accomplished, the timeframe in which it is to be accomplished and by whom.
• Observation interview: The process of observing employees while performing their respective jobs or tasks, used to collect data regarding specific jobs or tasks.
• Occupational illness/disease: Defined by OSHA as "any abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to factors associated with employment."
• Occupational groups: Used to classify specific occupations into a specific category, such as professionals, technical/hi-tech, administrative/clerical, sales, service, retail, etc.
• Occupational injury: An injury sustained during the course of employment, which results in the employee requiring medical treatment other then minor first aid and which results in the employee being absent from work as a result of such injury for one or more work days or results in work restrictions.
• Occupational Safety and Health Act (OSHA) of 1970: A law setting forth standards that employers must comply with in order to provide working conditions that are safe and free from any health hazards for all employees. Additionally, the law also requires employers to provide employees with protection against workplace hazards that could result in illness, injury or death to an individual, as well as to communicate to employees the information on hazardous materials or chemicals they may be required to handle.
• Occupational Safety and Health Administration: A Department of Labor office responsible for overseeing and assuring the safety and health of America's workers by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual improvement in workplace safety and health.
• Off-duty hours: Used to define the periods of time during which an employee is totally and completely relieved of any and all job duties and is free to attend to his or her own personal activities.
• Off-shoring: The practice of relocating business processes, such as production/manufacturing, to a lower cost international location.
• Older Workers Benefit Protection Act (OWBPA) of 1990: OWBPA amended the ADEA prohibiting all employers from age discrimination in employee benefits programs by either providing equal benefits for older and younger workers or by spending an equal amount on benefits for both groups. It also provides specifications on the requirements for ADEA waivers.
• Ombudsperson: A neutral third party that helps individuals or groups in conflict resolve disputes by mediating, coaching and facilitating communication between the parties and recommending an appropriate resolution.
• On-call pay: Additional compensation awarded to employees who are required to remain on call during off-duty hours.
• On-call time: Used to define periods of time when an employee is off duty but is required to remain on or close to the company premises or to respond to a call or page within a specified period of time, resulting in the employee being unable to effectively use such time to attend to his or her own personal activities.
• O*Net (Occupational Information Network): Administered and sponsored by the U.S. Department of Labor's Employment and Training Administration, the Occupational Information Network--O*NE--is a database that replaced the Dictionary of Occupational Titles (DOT) as the nation's primary source of occupational information.
• On-the-job training: Training provided to employees by managers and supervisors; conducted at the actual worksite utilizing demonstration and actual performance of job tasks to be accomplished.
• Open-book management: A management strategy emphasizing employee empowerment by making the organization’s financial data available to all employees. The goal of this type of management program is to make employees view themselves as more of a business partner and increase their awareness of how their actions and decisions affect the organization’s bottom line.
• Open enrollment period: The period of time designated by the employer’s health or other benefit plan when employees may enroll in new benefit plans or make changes to existing benefit plans.
• Open shop: An organization that hires workers without regard to their membership in a labor union.
• Operating budget: A detailed projection of all projected income and expenses during a specified future period.
• Opinion letter: A written document issued by government agencies used to provide a ruling on a particular issue.
• Opinion survey: A tool used to solicit and assess employee opinions, feelings, perceptions and expectations regarding a variety of managerial and organizational issues.
• Opt-out provision: An employer benefit plan provision that offers cash, extra benefits or additional credits in return for an employee reducing the level of benefits he or she selects under a flexible benefit/cafeteria-style program or providing extra cash compensation to those employees who choose not to elect any benefit coverage.
• Oral reprimand: A verbal warning given to an employee by a manager or supervisor as a means of correcting inappropriate behavior or conduct.
• Organizational behavior modification theory: A motivational theory suggesting that an individual will behave in a manner that helps him or her avoid potential negative outcomes and achieve agreeable outcomes.
• Organizational transformation: Refers to organization-wide changes, such as restructuring operations, introducing new technologies, processes, services or products, implementing new programs, re-engineering, etc.
• Organization chart: A graphic representation outlining how authority and responsibility are distributed within an organization.
• Organization culture: An organization’s attitude and values regarding itself, employees, customers and the general public. It encompasses the manner things are done within the organization based on defined policies and practices.
• Organizational design: The process of establishing and arranging the elements of an organization’s structure.
• Organization development: A planned organization-wide effort to improve and increase the organization’s effectiveness, productivity, return on investment and overall employee job satisfaction through planned interventions in the organization's processes.
• Organization planning: The process of transforming an organization’s goals, objectives, philosophy and mission into practices and policies.
• Organizational structure: The design of an organization that identifies the organization’s hierarchal reporting and authority relationships.
• Organization survey: The process of evaluating and analyzing an organization’s structure and other major components to determine whether they are suitably meeting the organization’s current and future needs.
• Orientation: The introduction of employees to their jobs, co-workers and the organization by providing them with information regarding such items as policies, procedures, company history, goals, culture and work rules.
• Outcomes assessment: A strategy used to evaluate and measure the results of an instructional method or program.
• Outplacement: A benefit offered by the employer to displaced employees that may consist of such services as job counseling, training and job-finding assistance.
• Outsourcing: A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management for certain HR, benefit or training-related functions or services to the external provider.
• Outreach programs: A method of keeping employees informed of company programs and services available to them by utilizing such things as postings, newsletters, memos or meetings.
• Overtime: In accordance with the Fair Labor Standards Act (FLSA), it is the term used to define work that is performed in excess of 40 hours per week.
• Paid leave bank: A benefit program granting employees a bank consisting of a specific number of paid days that can be used for absences related to sickness, vacation or personal reasons.
• Paid time off (PTO): A benefit program granting employees a specific number of vacation or personal days off which that are paid by the employer. The number of days is generally based on the employer’s policy for accrual of paid time off.
• Paired comparison: A form of rating, in which the rater compares, one by one, the performance of each member in a group with the performance of every other member in the group.
• Parental leave: A benefit designed to provide employees with approved paid or unpaid time off following the birth or adoption of a child or to care for a dependent.
• Pareto chart: A bar graph used to rank in order of importance information such as causes or reasons for specific problems, so that measures for process improvement can be established.
• Partial disability: An illness or injury that prevents an individual from performing one or more functions of his or her job.
• Participative management: A management style, developed by Motorola, that involves employees in the decision-making process.
• Part-time employee: An individual who continually works less than 40 hours per week (standard workweek hours are based on individual employer policy, therefore, a 40-hour workweek is only a guideline; this number could be higher or lower).
• Paternity leave: A benefit designed to provide fathers of newborn children with paid or unpaid time off from work following the birth of the child.
• Pay adjustment: Any change made to the pay rate of an employee, such as an increase or decrease to the rate of pay.