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HR Terminologies

This is a document with a list of HR Terminologies:

  1. Attrition: It is a psychological process in which people are motivated for the cause of their actions and behavior. This individual explains their behavior and the effect based on external and internal factors.
  2. Balanced Scorecard: This is a tool used by managers to track and monitor staff activities and manage the consequences arising in the organization.
  3. Change Management: This is defined as change that an organization brings in them both internally and externally and how the organization implements them and monitors their employees before and after the change. 
  4. Exit Interview: It is a process of taking an interview with an employee who is about to leave an organization to discuss the reasons for leaving and their experience in an organization
  5. Onboarding: Onboarding is a process of introducing new joiners or employees who are newly hired into an organization. It is an important process in which they are demonstrated about the company, mission, vision, business model, company rules and regulation, job roles and duties, etc. 
  6. Retention: Employee retention is the complete strategy of an organization to retain its best employees. An organization can succeed by practicing several employee retention strategies. Employee retention should be the major focus area of the human resources department in any organization. Retention of the best employees who are very positive and dedicated towards their work is very important for the organization's success. High employee business raises the expenses. Executing an employee retention strategy is an operative way of making sure that the key employees remain employed while matching and maintaining job performance and productivity.
  7. Succession Planning: Succession Planning is the strategy for identifying and developing future leaders at companies who can replace old leaders when they leave the company, retire or die.
  8. KRA: KRA is the Key Responsibility Area of a job. KRA is the important activities that must be performed well by individuals or groups to achieve the organizational or departmental objectives.
  9. KPI: KPI means Key Performance indicator as it measures how a company can reach its business goals. It shows that how much HR is contributing. It shows the success of the company at every level. 
  10. Employee Experience: one of the HR terms that coined more and more often is employee experience.  Employee experience is how employees feel about what they encounter throughout their employee journey at an organization employee experience offers a somewhat new perspective to doing HR. where employee engagement is seen as employee outcome. Employee experience is the way HRM is perceived. It is thus seen as a driver of employee and organizational outcomes.
  11. Benchmarking: The process by which they work and the performance of an organization or the team are measured. It can be done by a variety of tools and can be measured by several varieties. Benchmarking can be done to make the comparison of the internal environment with the external environment to check the improvement.
  12. Bumping: In this process, the experienced and senior employees are eliminated from their position and are asked to take one position down to maintain and retain institutional knowledge and experienced workers.
  13. Orientation: It is referred to as introducing the selected employees to their superiors, subordinates, and colleagues, and introducing them to the rules and policies of the organization.
  14.  Performance Appraisal: It is a job performance review of each employee towards organization goals. Generally performance appraisal reviews on an annual basis. Skills growth, initiatives, achievements against goals sets are taken into consideration at the time of review of each employee. This is done to decide the percent at which employee should be appraised
  15. Employee Engagement: It is the extent to which employees feel passionate about their jobs, is committed to the organization, and put effort into their work. Engaged employees boost productivity and enhance the company's culture.
  16. Nepotism: Nepotism refers to the practice of preferential hiring of relatives and friends, even though others might be more qualified for those positions. This favoritism is generally shown by the individuals in senior authority positions such as CEO, managers, or supervisors.
  17. Emotional Intelligence:- This refers to the ability to know, access, and manage one's own emotions and other emotions too. EI helps HR to better understand and motivate people they supervised. HR can also create an emotionally intelligent workforce by offering training to improve emotional competence and hire high emotional intelligence people.
  18. Hiring Manager:- An employee of an organization management team often in Human Resource, who is responsible for the entirety or majority of the hiring process.
  19. Compensation:- The sum of all remuneration and benefits to an employee for work rendered. Compensation usually includes a monetary value but also often includes non-monetary perks and benefits such as paid-time-off membership etc.
  20.  Behaviorally Anchored Rating Scale (BARS):- it is a scale to rate the performance and behavioral pattern of the employees. It helps to improve the organization's performance as it provides a clear standard upon which employees are appraised.
  21. Fringe benefit:- Employer grant some additional benefits to the employees that have a monetary value and which does not affect their stated salary like health insurance, medical leave, etc.   
  22.  Flexible working hours:- It is the arrangement which is made by the employer for the employee to provide with some degree of choice in terms of how many hours they will work for.
  23.  Job description:- It is a written document where we describe the nature of the job responsibilities that one has to perform. It also describes the role of the person with his or her duties and what other skills are required to perform the specific role.
  24. Payroll: Managed by an organization's accounting or HR department, payroll is a list of employees who get paid by the particular organization for a set period or on a particular date.
  25. Training & development: It refers to certain activities within an organization to enhance the knowledge and skills of employees they need to do that job as well as providing them learning opportunities for their further growth.
  26. Gross misconduct: This is action on a very serious note that it can immediately eliminate an employee from the duty. Physical violence and intoxication at work mainly come under this.
  27. Freedom of association: This is the right to the employee according to which they are free to be associated or leave any group or team. These groups can take any action in interest to the members of the group.
  28. Heading Statement: Term used to identify the topmost paragraph starting of resume. A heading Statement usually uses in either a resume summary or in a resume objective.
  29. Layoff: A discharge of employees from a company often temporary and often due to financial reasons or restructuring. Layoffs differ from firing because usually the layoff position was terminated.
  30. Fringe benefits: Employment compensation other than wages or salary, including, for example, annual and sick leave, medical insurance, life insurance, retirement benefits, profit sharing, and bonus points.
  31. Behavioral Interview Question: Questions asked during an interview about past work experience and how a candidate has to control certain situations or scenarios in the past. This process indicates that past behavior predictions future behavior.
  32.  Human Resources: It is a set of people who makes up the workforce of an organization, business sector, industry, or economy. The department is responsible for managing the employee life cycle, i.e., recruiting, hiring, onboarding, training, firing employees, and administering employee benefits.
  33. Letter of Recommendation: A letter sent to an employer according to their work, skills, and capabilities can also help them join any other firm or any job according to their work experience and interest to give their best.
  34. Promotion: This is usually given to a candidate as of higher rank and responsibilities as compared to their present position although this comes with more work, responsibility, compensation, and benefits.
  35. Diversity in the organization: In an organizational context, diversity refers to equality of opportunity and employment without any biased decisions.
  36.  Job satisfaction: Job satisfaction describes as any mixture of psychological, physiological, and environmental conditions that cause an employee to honestly say that they are satisfied with a job.
  37. Power and Politics: Power and Politics Influenced In Organizational Behavior. Personalities in organizations practice their power to satisfy their common need or get what they want.  Groups or organizations use power and politics to control their members and employees to obtain and maintain to complete their goals.
  38. Leadership: Leadership can be defined as the ability of the management to make sound decisions and inspire others to perform well.
  39. Strength: Skills and abilities a candidate may have that are available in greater quantity and quality than other candidates. Interviewers look for strengths that fit their company’s needs and often will ask interviewees."What is your strength" during interviews. 
  40. Transferable skill: Skills and abilities a candidate has learned and built from one work environment that can be used in another work environment.
  41. A confidentiality agreement: This is an agreement between an employer and employee in which the employee may not reveal branded, patented, or close information. A confidentiality agreement serves as legal protection.
  42. Distributive bargaining: Distributive bargaining is the conciliation between opposite parties that involves the supply of a finite resource. One party prevails, to the detriment of the other.
  43. Incentive pay: Incentive pay is the remuneration given to the employees to motivate them to go above and beyond the expected work outcome. 
  44. Job Evaluation: it is the way to determine the worth of a job for other jobs. It starts with an analysis of the job and ends with knowing the worth of the job. it is a tool for the management to improve the manpower in an organization. 
  45. Virtual HR: it is a process for providing a range of options to the employees in certain HR services through different technology methods. It includes functions like recruiting, training and on-boarding.    
  46. 401(k) Plans: Named for the section of the Revenue Act of 1978 approving them, this cash or deferred plan (CODA) allows staff to agree to a reduction in salary in exchange for the employer’s equal contribution to a tax-qualified trust. Employees thus can accumulate capital for retirement purposes and defer income tax on both contributed and plan income until retirement.
  47. Absenteeism: Absenteeism is the failure to show up for scheduled work. This is distinguished from tardiness or lateness, which indicates a failure to report for work on time, and turnover, which indicates a permanent leave from work where the ex-employee is replaced.
  48. Background Check: Investigation into the truth of a prospective candidate’s statements from their submitted application and/or resume. A background check may include additional research into a potential employee’s criminal history, social media presence, and more.
  49. Combination: A resume format for those who want to show off their skills before jumping into their work experience. It’s a top resume format for career changers, high-level professionals, and job seekers with employment gaps. 
  50. Psychometrics: Psychometrics is a field of study concerned with the theory and technique of psychological measurement. The field is concerned with the objective measurement of skills and knowledge, abilities, attitudes, personality traits, clinical constructs, mental disorders, and educational achievement.
  51. Maslow's hierarchy of needs: It is a theory of motivation which states that five categories of human needs dictate an individual's behavior. Those needs are physiological, safety needs, love and belonging needs, esteem needs, and self-actualization needs.
  52. Motivational Theories: Abraham Maslow developed one of the first theories on what motivates individuals. According to Maslow, human beings have needs that are organized into a hierarchy, illustrated by a pyramid.
  53. Theories of Performance: HR theories aim to achieve two primary outcomes: more efficient and effective job performance and increased worker motivation or commitment. One efficiency theorist, Henri Fayol, argued that workers function more efficiently when management is more efficient.
  54. Annual Leave: A period of paid time off or holidays, most commonly accrued at 4 working weeks per annum, (pro-rata for part-time employees). Annual leave is usually only accrued by full- and part-time staff (not casual employees)
  55. Human Capital Management: The role of HR to manage and retain the best employees in the business by offering exceptional work conditions, exemplary culture, and attractive benefits and remuneration.
  56. Social HR: The use of social networking by HR departments to create opportunities or offer services to employees, (such as using Facebook to coordinate staff events).
  57. Induction: Induction is the process of introducing a new employee to the company culture and processes to bring them up to speed as quickly as possible and make them feel socially comfortable and aware of their professional responsibilities. Companies will typically have an induction program in place and follow the same processes for all new hires, although the induction process may vary depending on the industry, the job role, and the seniority of the new hire.
  58. Job Rotation: It is the movement of employees in different job roles which enriches their skills, ability to work on different roles, and experience. It is a useful HR strategy to create awareness among employees about all types of jobs performed in their vertical.
  59. Organization Culture: It is the movement of employees in different job roles which enriches their skills, ability to work on different roles, and experience. It is a useful HR strategy to create awareness among employees about all types of jobs performed in their vertical.
  60. Recruitment request form: It is a document submitted by the departments to the human resource department to relay their intent for the need to recruit new people to have an additional workforce for the specific department. 

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