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HR

Compendium

For SIP Preparation









Compiled by
Team HRidhaan, IIM Raipur

ORGANISATIONAL BEHAVIOUR -
Introduction

What is an Organization?
Organization is a consciously coordinated social unit, composed of a group of people, which
functions on a relatively continuous basis to achieve common goal or a set of goals.

Meaning of Organizational behavior
Organizational behavior is the systematic study of human behavior, attitudes and
performance within an organizational setting.

Basic approaches of Organizational behavior
The four basic approaches of OB are:
Human Resources (supportive) approach- Employee growth and development
toward higher levels of competency, creativity and fulfillment are encouraged and
supported because people are the central resource in any organization and society.
Contingency approach-Different managerial behaviours are required by different
environments for effectiveness.
Results-oriented approach-Outcomes of organizational behavior programs are
assessed in terms of their efficiency. Systems approach- All parts of an organization
interact in a complex relationship.
Systems approach takes an across- the board view of people in organizations and
analyses issues in terms of total situations and as many factors as possible that may
affect peoples behaviour.

Framing the study of Organizational behavior
The study of OB involves

A. The Organizations Environment
Forces present in the environment outside the organization like needs of the society,
demands of customers or clients, legal and political constraints, economic and
technological changes and developments interact with the organization and the
management of an organization must respond appropriately to it.
B. The Individual in the Organization
Individual performance forms the basis of organizational performance. The four key
influences on individuals behavior and motivation are:
a. Individual characteristicse.g., personality, attitudes, perceptions, values.
b. Individual motivationinteracts with ability to work to determine individual
performance.
c. Rewards/punishmentuse of behavior modification techniques to enhance
performance and control misbehavior.
d. Stress.
C. Interpersonal Influence and Group Behavior
Interpersonal influence and group behavior affect organizational performance in the
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following way:
a. Group Behaviorthe dynamics of formal groups (created by managerial decisions)
and informal groups (developing around members' common interests and friendship)
have an impact on the functioning of the organization
b. Intergroup Behavior and Conflictgroups can cooperate and/or compete with each
other in organizations; conflict resulting from competition may be either functional or
dysfunctional, depending on the organization.
c. Power and Politicsthe dynamics and effects of power, authority and politics in the
organization.
D. Organizational Processes, Structure and Design
A formal pattern of activities and interrelationship among the various subunits of the
organization. It includes:
a. Organizational Structurethe components of the organization and how these
components fit together.
b. Job Designthe processes managers use to specify the contents, methods, and
relationships of jobs and specific task assignments.
c. Organizational Processesfour behavioral processes that contribute to effective
organizational performance are:
1. Leadershipimportant for obtaining individual, group and organizational
performance. Defined by some in terms of specific traits and behaviors; the
combination of those behaviors; or dependent upon the specific situation in
which the leading is occurring.
2. Communication Processlinks the organization to its environment and
links parts within the organization to each other.
3. Decision-Making Processthe dynamics, variety and techniques of both
individual and group decision-making.
4. Organizational Change and Development Processesplanned attempts to
implement change that will improve overall individual, group, and
organizational performance. It involves the study of Organizational structure
and Design and Managing change and Innovation.
















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Models and Theories of Organizational Behaviour


Models of Organizational Behaviour constitute the belief system that dominates
managements thought and affects managements actions in each organization. It is very
important for the managers to recognize the nature, significance and effectiveness of their
own models as well as the models of others around them.

1. Theory X and Theory Y by Mc Gregor (1957)



2. 5 models of Organisational Behaviour

Managerial decision making



Categories of Decisions :

1. Programmed Decisions-Situations occurred often enough to enable decision rules to be
developed and applied in the future Made in response to recurring organizational
problems
2. Nonprogrammed Decisions in response to unique, poorly defined and largely
unstructured, and have important consequences to the organization.

Certainty, Risk, Uncertainty, Ambiguity

Certainty
all the information the decision maker needs is fully available

Risk
decision has clear-cut goals
good information is available
future outcomes associated with each alternative are subject to chance

Uncertainty
managers know which goals they wish to achieve
information about alternatives and future events is incomplete
managers may have to come up with creative approaches to alternatives

Ambiguity
by far the most difficult decision situation
goals to be achieved or the problem to be solved is unclear
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alternatives are difficult to define


information about outcomes is unavailable

Decision Making Models



1. Classical Rational Approach- Logical decision in the organizations best
economic interests
Assumptions
Decision maker operates to accomplish goals that are known and
agreed upon
Decision maker strives for condition of certainty gathers
complete information
Criteria for evaluating alternatives are known
Decision maker is rational and uses logic
Normative = describes how a manager should make and provides
guidelines for reaching an ideal decision for the organization

2. Bounded Rationality Model- Decision makers (irrespective of their level
of intelligence) have to work under three unavoidable constraints:
(1) only limited, often unreliable, information is available regarding
possible alternatives and their consequences,
(2) human mind has only limited capacity to evaluate and process the
information that is available, and
(3) only a limited amount of time is available to make a decision.

3. Satisficing Model- It means choosing a satisfactory solution which is
acceptable or reasonable over the optimal (best) solution because
reaching the optimal solution would cost much more time, effort or
resources, while the satisfactory solution suffices because it achieves an
acceptable level of performance
4. Impulsive decision making It is not, in and of itself, believed to be a
personality trait. It is, however, thought to be a tendency that flows
from the trait of impulsivity.






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INIVIDUAL BEHAVIOUR AND PROCESSES



Motivation
Internal and external factors that stimulate desire and energy in people to be continually
interested and committed to a job, role or subject, or to make an effort to attain a goal.
Motivation results from the interaction of both conscious and unconscious factors.

Intrinsic Motivation -- the self-generated factors which influence people to behave
in a particular way or to move in a particular direction. These factors include
responsibility, freedom to act, scope to use and develop skills and abilities,
interesting and challenging work and opportunities for advancement.
Extrinsic Motivation -- what is done to or for people to motivate them. This includes
rewards such as increased pay, praise or promotion; and punishments, such as
disciplinary action, withholding pay or criticism.

Theories of Motivation

1. Content theories -- Human needs and how people with different needs may respond
to different work situations
I.
Maslows Need Hierarchy Theory




For employees at different rankings / positions different means of motivation



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II.

Herzbergs Two Factor Theory


III.


IV.

Alderfers ERG Theory


McClelland Need Theory

2. Process theories -- How people give meaning to rewards and make decisions on
various work-related behaviors.
I.

Vroom's expectancy theory


II.

Porter-Lawler Extension of Expectancy Theory


III.

Equity Theory
Equity is an individuals belief that the treatment he or she receives is fair
relative to the treatment received by others


IV.

Goal Setting Theory


There are five goal setting principles that can improve our chances of success:
Clarity
Challenge.
Commitment.
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Feedback.
Task complexity.
3. Reinforcement Theory

Personality
A relatively enduring pattern of thinking, feeling and acting that characterizes a persons
response to her or his environment.

1. Trait Theory


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2. Jungian and Myers-Briggs personality type indicators


VALUES
Values are guiding principles that determine individual morality and conduct. Values that are
important to people tend to affect the types of decisions they make, how they perceive their
environment, and their actual behaviors

Schwartzs Values Circumplex



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Glossary of HR Terms

Absenteeism
The rate of occurrence of unscheduled employee absences from the workplace.
Absenteeism can also happen for legitimate reasonspersonal illness or family issues or be
caused by other factors such as a poor work environment, bad management, poor
motivation or employees who are not committed to their jobs.

Absolute
Ratings

A rating method for employees performance. In absolute rating, the rater assigns a specific
value on a fixed scale to the work behavior or job performance of an individual instead of
assigning ratings based on comparisons with other individuals.

Affirmative
Action (also Positive Discrimination)

A policy or a program, which aims to redress past or present discrimination through active
measures to ensure equal opportunity for all citizens. In India, the focus has mostly been on
undoing the ills suffered by some groups due to caste discrimination and in South Africa or
USA, on race-based discrimination. Examples of affirmative action can be found in
education, employment or representation in decision-making bodies. Typical groups
targeted for affirmative action are characterized by race, gender, ethnicity or disability
status.

Appraisal
(also Performance Planning)

Performance appraisal is the process of reviewing employee performance, setting new
performance objectives, documenting the review, and also possibly delivering the review
verbally in a face-to-face meeting. Annual performance reviews are typically intended to
give mutual feedback on performance to the employee and often also to the supervisor, set
new performance objectives and justify personnel decisions, e.g. compensations and
benefits.

Attrition

Attrition is the reduction in staff and number of employees in a company through natural
means such as retirement or resignation. This method for a company to decrease labour
costs is considered better for company morale than labour-reduction techniques, such as
mass layoffs. Some claim involuntary attrition, a synonym for laying-off and firing employees
to be a form of attrition.

Autocratic
Leadership

A form of corporate leadership. A leader determines the policy of the organization and
instructs members what to do. In this subjective style, the leader solves the problem or
makes the decision using information available to the leader at the time.

Balanced
Scorecard

A strategic management and measurement system. Balanced Scorecard is a popular
strategic management concept developed in 1992 by Robert Kaplan and David Norton. It
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enables organizations to clarify their vision and strategy and translate them into action. The
goal of the balanced scorecard is to link business performance with organizational strategy
by measuring results in four areas: financial performance, customer knowledge, internal
business processes, and learning and growth.
Base
Payroll

The sum of annual salaries and/or wages (base rates) paid at the opening of business on the
first day of the plan year or last day of prior year (e.g., Dec. 31) before any increase.

Base
Salary

Pay received for a given work period, as an hour or week, but not including additional pay,
as for overtime work. It is used as the basis for calculating other allowances and benefits.

Behaviourally
Anchored Rating Scale (BARS)

BARS is a performance appraisal technique developed by Smith and Kendall (1963).
Behaviourally Anchored Rating Scales combines a graphic rating scale with the critical
incident method of rating. A description of important job behaviours is used to anchor the
scale. The evaluator is asked to select the description which best matches actual behaviour
on a specific job dimension during the rating period. The scale used is usually a 3-Point or 5-
Point scale but could also be narrative.

Behavioural
Based Interview

An interview technique, which focuses on a candidates past experiences, behaviours,
knowledge, skills and abilities rather than on nominal qualifications. Information is obtained
by asking the candidate to provide specific examples of when they have demonstrated
certain behaviours or skills. In this interview method, the best predictor of future
performance is considered past performance under similar circumstances. Behavioural
interviews may also be referred to as behavioural event (BEI) or descriptive (BDI) interviews.

Behavioural
Competency

Behavioural competencies refer to personal attributes or characteristics (i.e. motives,
attitudes, values) that describe HOW a job or task is performed as opposed to the
particulars of the job or task. Behavioural competency measurement and appraisal attempts
to determine if the behaviours actually shown by an employee are those identified by job
analysis/competency profiling as those contributing to team and/or organizational success.

Benchmarking (also Best Practice Benchmarking or Process Benchmarking ) is a process used
in management and particularly strategic management, in which organizations evaluate
arious aspects of their processes in relation to best practice, usually within their own sector
or industry. This allows organizations to develop plans for adopting and adapting such best
practice for increasing their performance. Benchmarking is considered a continuous process
in which organizations should continually seek to challenge and improve their practices.

Benefits
of Benchmarking

Some see benefits as a form of supplement paid by employers to employees over and above
the amount of pay specified as cash compensation. For others, benefits are a portion of a
total compensation package or total rewards for employees. A comprehensive, common set
of benefits could include many components e.g., career development, support for work-life
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balance, personal security, pension schemes, health insurance, life insurance, PTO or paid
time off.

Bereavement
Leave

Bereavement leave is paid leave that an employee is entitled to following the death of an
employees spouse, parent, child grandparent or in-law so that the employee may attend
funeral proceedings, etc. An employee may be granted additional paid working days to
attend or arrange funeral services out-of-state.

Bereavement
Policy

A bereavement policy is the companys practice for allowing paid and unpaid employee time
off when a family member, relative, or partner dies. Bereavement time is granted for
making funeral arrangements, attending the funeral and burial, paying respects to the family
at a wake or visitation, dealing with the deceaseds possessions and will, and other matters
that employees must address when a loved one dies.

Bonus

An after-the-fact reward or payment (may be either discretionary or nondiscretionary)
based on the performance of an individual, a group of workers operating as a unit, a division
or business unit, or an entire workforce. Payments may be made in cash, shares, share
options or other items of value. In the context of sales compensation, a defined, pre-
established amount of money to be earned for achieving a specified performance goal.
Planned bonus amounts commonly are expressed as a percent of the incumbent's base
salary, salary range midpoint, percentage of target cash compensation or incentive
compensation, or a defined dollar amount.

Bonus
Pay

A bonus is compensation over and above the amount of pay specified as a base salary or
hourly rate of pay. The base amount of compensation is specified in the employee offer
letter, in the employee personnel file, or in a contract. A bonus can be distributed randomly
as the company can afford to pay a bonus, or the amount of the bonus can be specified by
contract.

Branding

The whole process of identifying and differentiating an organizations products, processes or
services
from another organization by giving it a unique name, phrase,

shape or other distinguishing mark or for creating an image in the consumers mind.
Branding
allows a company to differentiate themselves clearly from the competition

in order to bond with their customers and to create customer loyalty.

Brand
management

The application of marketing techniques to a specific product, product line or brand in order
to manage the tangible and intangible aspects of the brand. Brand management seeks to
increase the products perceived value to the customer and increase brand equity. It can
also be said to be the process for optimising the Marketing Mix of a brand.


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Broadbanding

In a broadband pay structure, the numbers of salary grades are reduced, but the differential
between one grade and the next is increased. Broadbanding evolved as organizations began
to flatten their hierarchies and move decision-making closer to the point where competence
and knowledge exists in organizations. In flattened organizations, the broadbanding
structure allows more manoeuvrability for pay increases and career growth without actual
promotion.

Bullying

Bullying is the act of intentionally either directly or indirectly causing harm to others,
through verbal harassment, physical assault, or other more subtle method of coercion like
manipulation or threat of


social exclusion. Bullying in the workplace may not be defined or deemed illegal in many
countries but some US states have laws against workplace bullying. It is also referred to as
peer abuse.

Bumping

The practice of allowing more senior level employees, whose positions have been marked
for elimination, the option of accepting another position within the organization, for which
they may be qualified to perform and which is currently occupied by another employee with
less seniority. Bumping rights are often defined in collective bargaining agreements.

Change
management

Change management is a structured approach for handling change in individuals, teams,
organizations and societies and overseeing the transition from a current state to a desired
future state. Typically the term is used in a business context where it refers to the planned
effort of an organization to anticipate change and to manage this introduction,
implementation, and consequences. Change management typically provides a
comprehensive framework for managing the people side of these changes in addition to
focusing on the new process, technology or public policy.

Coaching

Coaching is a learning process to facilitate the professional development of an individual or
a team in a business context. Personal Coaching is a relationship, which is designed and
defined in a relationship agreement between a coach and a client and centres around the
clients interests, goals and objectives. A Personal Coach typically uses questions, reflection
and discussion to help clients identify personal and/or business and/or relationship goals,
develop strategies, relationships and action plans for achieving those goals.

Collective
Agreement

A Collective agreement is a labour contract between an employer and one or more unions
about the terms and conditions of employment of employees. Typical issues are salaries and
wages, hours of work, working conditions and grievance-procedures and the rights and
responsibilities of trade unions.


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Collective
Bargaining

The process by which an employer negotiates employment contracts and working
conditions with one or more unions collectively for all employees. In some countries
employers organizations can negotiate on behalf of several employers.

Comparable
Worth

The concept by which women who are usually paid less than men may claim that men in
comparable though not strictly equal jobs are paid more.

Compensable
Factors

Some job evaluation methods, primarily point-factor methods, evaluate jobs in terms of
"compensable factors", which are skill, effort, responsibility and working conditions.

Compensation

The methods and practices of maintaining balance between interests of operating an
organisation within the fiscal budget and attracting, motivating, developing, retaining, and
rewarding employees with desired skill sets through wages and salaries which are
competitive with the prevailing rates for similar employment in the same labour markets.
Typically compensation includes base elements such as wages and salaries and variables
such as bonus and incentives.

Competency-Based
Pay (also Skill-Based Pay and Knowledge-Based Pay )

Competency based pay is a compensation system that recognizes employees for the depth,
breadth, and types of skills they obtain and apply in their work rather than for the position
they hold. This approach to compensation attempts to address organizational needs to
motivate employees and support organizational strategies.

Competence

Competence can be defined as the ability to perform a particular activity to a prescribed
standard. Competence is an acquired personal skill that is demonstrated in an employees
ability to provide a consistently adequate level of performance in a specific job function.
Competence should be distinguished from competency, although in general usage the terms
are used interchangeably. There tends to be a focus in the United Kingdom on competence,
whereas in the United States, the concept of competency is more popular.

Competency

Competencies are the knowledge-skills and the attitude needed by any individual employee
to carry out their job effectively. Another way to define competency is an underlying
characteristic of a person motive, trait, skill, aspect of ones self-image or social role,
experience or a body of knowledge.

Competitive
Advantage

The strategies, skills, knowledge, resources or competencies that differentiate a business
from its competitors. A competitive advantage is an advantage over competitors gained by
offering consumers greater value, either by means of lower prices or by providing greater
benefits and service that justifies the value proposal like higher prices.

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Confidentiality Agreement ( also Non-Disclosure Agreement or Confidential Disclosure


Agreement)

An agreement restricting parties to the agreement (typically an employee, partner, service
provider or a consultant) from disclosing confidential or proprietary information. A non-
disclosure agreement (NDA), also called a confidential disclosure agreement (CDA),
confidentiality agreement or secrecy agreement, is a legally binding contract between the
parties. The contract outlines confidential materials or knowledge the parties wish to share
with one another for certain purposes, but wish to restrict third parties from accessing
these.

Consent

In a HR context, consent means permission given towards certain ends, e.g. an employee
formally gives access to personal information or performance records.

Constructive
Dismissal

A constructive dismissal occurs when an employee resigns due to their employers
behaviour. The employee must prove that the behaviour was unfair that the employers
actions amounted to a fundamental breach of contract or the law. In the UK, Employment
Rights Act 1996, s. 95(1) provides that there is a dismissal if: the employee terminates the
contract under which he is employed (with or without notice) in circumstances in which he
is entitled to terminate it without notice by reason of the employers conduct. Examples of
constructive dismissal in UK: Reduction in Pay, Demotion, and Workplace Abuse.

Contingency
Models

Leadership style models in organisational theory. Behavioural models do not fully explain
leadership styles as the situation in which the group operates also determines the adopted
style of leadership. There are several models, which attempt to understand the relationship
between style and situation, four of which are commonly seen:
Fiedlers Contingency Model.
Hersey-Blanchard Situational Theory.
Path-Goal Theory.
Vroom-Yetton Leadership Model

Contingent
Workers

Contingent workers are employed when the employer needs them, without any job security
or long-term commitments. Part-time workers, temporary and contract workers, self-
employed workers and independent contractors are examples.

Contract
for Services

An agreement with an independent contractor whereby the Contractor agrees to perform
services in accordance with the terms agreed upon at the prices agreed upon. Contract for
services is distinct from contract of service or employment contract. If a contract does not
contain a requirement for personal service or there is insufficient control or there is a lack of
mutuality of obligations (i.e., an obligation to offer and an obligation to accept future work)
the contract is unlikely to be seen as a contract of employment.

Contract
of Service

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Employment agreement. An agreement between an employer and an employee at the time


the employee is hired. The contract outlines the precise nature of their business relationship
specifically what compensation the employee will receive in exchange for what specific work
performed and often prescribing how such performance could be measured. Contracts of
service have implied terms (assumed, unspoken, essential terms), as well as explicit terms
(typically in writing). Contracts also contain clauses for termination of employment, by
either party, and include notice period, reasons, and compensation arrangements etc. In
some countries verbal contracts are also recognised, but written contracts are the norm.

Core
Competencies

Core Competencies are the set of the most strategically significant and value-creating skills
in a job, within a discipline or field, or in an organization. These are the skills, knowledge and
abilities, which employees must possess in order to successfully perform job functions. Core
competencies are strategic business capabilities that provide a company with a marketplace
advantage by distinguishing superior performance.

Core
Labour Force

A small group of permanent employees, who are strategically vital for the organisation.

Corporate Mission

The aims and objectives of an organization. Sometimes this is formulated into a mission
statement.

Cost-of-living
Allowance

Compensation designed to protect the expatriates standard of living from cost of living
differences
between the host country and the home country and to offer some

protection against exchange rate fluctuations.

Cost
Leadership

A strategy of trying to become the lowest-cost producer in the industry the organisation
operates in.

Cyclical
Unemployment

A form of unemployment. Cyclical unemployment rises in times of economic recession and
reduces in times of general economic prosperity.

Decision
Tree Model

A decision tree model is a decision support tool, which uses tree-like graphs of decisions and
their consequences, resource costs and utility as well as chance events. One of the four
Contingency theories of leadership developed by Vroom and Yettor (1973). See
Contingency Models above.

Deregulation

Is the process by which governments remove, reduce or simplify restrictions on businesses
and individuals with the aim of attracting outside investment, encouraging efficiency or
overall optimism. Deregulation in an economy is justified by arguing that fewer and simpler
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regulations will cause higher levels of competitiveness, increasing productivity and bringing
more efficiency, which lead to lower prices overall.

Distance
Learning

The methods of delivering educational, training or instructional programs to students at
locations away from a classroom. Typically this happens by using technology such as video
or audio-conferencing, computers connected over the Internet, web-based applications or
other multimedia applications.

Disciplinary
Procedure

An employment management procedure carried out in the workplace in the event of an
employee behaving in a manner contrary to the terms of the employment agreement. If the
behaviour is regarded as Gross Misconduct this may lead to Summary Dismissal . Example of
Disciplinary Procedure: Employee is given a written warning for being under the influence of
alcohol at work.

Discretionary
Bonus

A plan in which management determines the size of the bonus pool and the amounts to be
allocated to specific individuals after a performance period. These have no predetermined
formula or promises, and are not guaranteed.

Discrimination

The making of a distinction in favour of or against, a person based on the group, class,
gender, ethnicity, sexual preferences, religion or category to which that person belongs
rather than on individual performance or merit. Discriminating between employees on the
grounds of merit is generally lawful and common in most democracies but discrimination on
grounds such as skin colour, sexuality, ethnicity, language or religion is illegal in most
countries.

Dismissal

Involuntary termination of employment by employer. Distributive Bargaining ( also
Competitive Bargaining) Distributive bargaining is the approach to bargaining or negotiation
that is used when the parties are trying to divide something up. It contrasts with integrative
bargaining in which the parties are trying to make more of something, which already exists.

Downsizing

The process of reducing the number of people working for an organisation by terminations,
retirements and spinoffs.

Dual
Labour Markets

The Dual labour market theory divides the economy into two parts, called the primary and
secondary sectors. Workers in the primary sectors are highly skilled and enjoy high wages,
good benefits, and employment security, and they are often unionized. Workers in the
secondary sectors are low skilled or even unskilled, have low wages, high turnover, job
insecurity, and little chance of promotion. The model is also reflected in organizations when
they operate with a small Core Labour Force and a Peripheral Labour Force.

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Due
Diligence

A critical practice in mergers and acquisitions. The due diligence process is a method of
investigating and evaluating the condition of a particular investment or purchase or a
potential partner. Typically the financial, legal, labour, tax, IT, environment and
market/commercial situation of the company is investigated. Often intellectual property,
real and personal property, insurance and liability coverage, debt instrument review,
employee benefits and labour matters, immigration, and international transactions are also
looked into.

Emotional
Intelligence

Describes the mental ability an individual possess enabling him/her to be sensitive and
understanding to the emotions of others as well as the capacity for being able to manage
their own emotions and impulses. More precisely, it includes the abilities to accurately
perceive emotions, to access and generate emotions so as to assist thought, to understand
emotions and emotional knowledge, and to reflectively regulate emotions so as to promote
emotional and intellectual growth.

Employee
Advocacy

The responsibility of HR for clearly defining how management should be treating employees,
making sure that employees have mechanisms to contest unfair practices, and representing
the interests of employees within the framework of HRs primary obligation to senior
management.

Employee
Relations

A broad term, which is used to refer to the general management and planning of activities
related to developing, maintaining, and improving employee-management relationships
typically by communicating with employees, processing grievances/disputes, etc.

Employee
Retention

Systematic effort by employers to create and foster an environment that encourages
current employees to remain employed by having organizational policies and practices in
place to address their diverse needs effectively.

Employee
Value Proposition (EVP)

The term is a key concept in Employer Branding and used to show the balance measurement
between what an employee receives from their employer in return for their performance on
the job. EVP is increasingly seen as critical to attracting, retaining and engaging quality
employees.


Employer
Branding

The process of creating a desired image of the organization as a great place to work in the
mind of current employees and key stakeholders in the external market (potential
candidates, clients, customers and other key stakeholders).


Empowerment

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In an organisational context, it is the process of enabling or authorizing an individual to


think, behave, take action, and control work and decision-making in autonomous ways. In a
societal or political context, it is used to ameliorate the conditions of previously
disadvantaged populations.

Enterprise
Risk Management (ERM)

Enterprise risk management (ERM) is the process of planning, organizing, leading, and
controlling
the activities of an organization in order to minimize the effects of

risk on an organization's capital and earnings, as well as financial, strategic, operational, and
other risks.

Equity
Theory

The notion that employees wish to be treated fairly and will compare their own efforts and
the rewards of others in the organization with a view to judging the fairness of their
treatment.

Executive
Coaching

Executive coaching is usually a one to one form of coaching where a high potential
employee is teamed with a coach. The purpose here is to elevate the employees value
within
the company.

Often executive coaching addresses work-life balance issues, also guiding the employee
through barriers within an organization and also with their personal life.

Exit
Interview

An exit interview is a meeting between an employee who is leaving the organisation and a
representative of the organisation, usually from the Human Resources department. The
purpose is to get feedback about the reasons for leaving, the job the employee held, the
work environment, and the organisation; especially what the employee would like to
change. Should not be carried out by employees immediate superior.

Expatriate
Package

The total compensation and benefits given to personnel on a foreign assignment. Typically
includes base salary, cost-of-living allowance or foreign service premium, hardship
allowance, housing assistance, education allowance, relocation allowance and other special
allowances and benefits associated with a foreign assignment.

Extrinsic
Rewards

Work-related rewards received for performance with value measurable in monetary or
financial terms

Fixed
Term Employment

An employee and an employer may agree that the employment contract of the employee
will terminate on a specified date or at the end of a period or on the occurrence of a
specified event or at the conclusion of a specified project.


Freedom
of Association

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In an organisational context, it is the right to belong to a union. Overall it is the right to get
together with other employees for a legal common cause or purpose without interference.
Freedom of religion is a part of the freedom of association.

Functional
Job Analysis

A method of job analysis that produces standardized occupational information specific to
the performance of a particular job.

Goal
Setting

The systematic process of setting and assigning a set of specific and attainable goals to be
met by an individual, group or organization.

Good
Faith Bargaining

A duty to conduct negotiations where two parties meet and confer at reasonable times on
matters
within the scope of their representation, with open minds and with the

intention of reaching an agreement.

Grievance

In a HR context, a grievance is a complaint brought by the employee or the organisation to
an employment contract against another party.

Group
Dynamics

The social manner in which people interact with each other within a group in contrast with
one to one interpersonal behaviour. Also a branch of social psychology, which studies
problems involving the structure of a group.

Gross
Misconduct

An act committed by an employee, which is so serious even at first occurrence that it
justifies instant or Summary Dismissal . Examples may be: stealing, workplace violence.

Group
Think

The practice of reasoning or decision-making by a group, especially characterized by
uncritical acceptance or conformity to a certain or a prevailing point of view. Groupthink
prevents considering differing opinions and viewpoints, critically testing ideas, analyzing and
evaluating them.


Halo
Effect

In the selection and recruitment process, it is the situation that can arise when an applicant
is perceived to have one of the characteristics required for the position, and, because of
this, the interviewer or interviewing panel, wrongly infer that he or she has the other
characteristics required. In performance appraisals, a supervisors rating of a subordinate on
one trait biases the rating of that person on other traits.

HR
Audit
A method for assessing the effectiveness of human resource functions. Can be carried out
internally or by engaging external HR audit systems.
22


Hawthorne
Effect

The Hawthorne Effect describes the observation that subjects improve an aspect of their
behaviour, which is being measured simply as a response to the fact that they are being
observed and not because of any external influences. The term comes from the factory,
Hawthorne Works near Chicago, Illinois, USA where a study was made from 1924 to 1932 to
see if workers became more productive in higher or lower levels of light.

Hierarchy
of Needs

A human motivation theory proposed by the American psychologist Abraham H. Maslow
(1908-1970). He proposed a needs-based framework of human motivation where humans
are motivated by unsatisfied needs such that lower needs must be satisfied before higher
needs can be addressed.

Human
Capital

From an organisation point of view - the collective knowledge, competencies, health and
vigour, skills and abilities of all the organizations employees. Human capital, unlike
structural capital, in not reflected in financial statements and can walk out when employees
leave
unless it is systematically recorded in the organisations procedures and systems.

From an individual point of view the set of skills an employee acquires on the job, through
experience and training, which increases the employees value in the job market.

Incentive
Compensation

Compensation that is linked to performance by rewarding employees for actual results
achieved instead of seniority or hours worked.

Incentive
Pay

Additional financial compensation used to motivate and to reward employees for reaching
and/or exceeding standard performance or productivity goals.

Independent
Contractor

A person who works as an entrepreneur but has a contract for services with another
person/organization but is not an employee.

Individual
Employment Agreement

An individual employment agreement is a contract under which a natural person, called
employee, undertakes to perform the work for and under the authority of an employer,
natural or legal person, against an agreed upon remuneration.

Induction

Induction is the process through which a new employee is integrated into the organisation,
learning about its corporate culture, policies and procedures, and the specifics of their new
job. Induction should be treated as an extension of the selection process and the beginning
of a continuing staff development programme.


Industrial
Relations

23

In the narrow meaning, industrial relations includes the relationship and interaction
between employers and employees. In the wider meaning, industrial relations covers all
aspects of the employment relationship, including human resource management, employee
relations, and union-management (or labour) relations. Since the 1950s, the term deals with
unionized employment relationships, especially the study and practice of collective
bargaining, trade unionism, and labour-management relations, while human resource
management is a separate, largely distinct field that deals with non-union employment
relationships and the personnel practices and policies of employers.

Intrinsic
Rewards

Rewards that are associated with the job itself, such as the opportunity to perform
meaningful work, complete cycles of work, see finished products, experience variety,
receive professional development training, enjoy good relations with co-workers and
supervisors and receive feedback on work results.

Involuntary
Attrition

A synonym for laying-off and firing people, used when the organization desires to avoid
using either in order to minimise bad publicity.

ISO
9000
A family of standards and guidelines for quality in the manufacturing and service industries
from the International Organization for Standardization (ISO). ISO, a non-governmental
organization that forms a bridge between the public and private sectors, is the world's
largest developer and publisher of International Standards with a network of the national
standards
institutes of 161 countries.

ISO 9000 defines the criteria for what should be measured. ISO 9001 covers design and
development. ISO 9002 covers production, installation and service, and ISO 9003 covers
final testing and inspection. ISO 9000 certification does not guarantee product quality but
ensures that the processes that develop the product are documented and performed in a
quality manner.

Job
Analysis
Job analysis is a systematic study of a job to determine what activities and responsibilities
are included, their relationships with other jobs, the personal qualifications necessary for
performance of the jobs, and the conditions under which work is performed. Job analysis
usually results in a job description as well as recruiting plans.


Job
Description
A written description of a job based on a job analysis, which includes information about the
nature of the work to be performed, specific responsibilities and duties, and the employee
skills and characteristics required to perform the job, scope and working conditions, job title
and the name of the person to whom the person holding the job reports.

Job
Evaluation
Job evaluation is a system for analyzing and comparing different jobs and placing them in a
ranking order according to the overall demands of each one. The objective is to assess which
24

jobs should get more pay than others. There are two kinds of job evaluation programs: non-
analytical and analytical. Non-analytical programs compare a job with others. In an
analytical program, a job is split up into a number of different aspects and each factor is
measured separately. Different analytical programs are factor comparison, point-factor
rating, competency-based programs, and the profile method. Job evaluations assess the
content of a job, not an individuals performance of that job.

Job
Grading
Jobs are assigned a job grade based on the job value determined during the job evaluation.
Jobs are classified into a grade/category structure or hierarchy. Each job is assigned to a
specific grade/category. Jobs are placed with other jobs of similar requirements, duties, and
responsibilities. The higher the job grade, the greater the level of responsibility and the
higher the salary range.

Job
Specification
Is a document, derived from job analysis, which outlines the basic purpose of a job, nature
of work, examples of typical duties and minimum requirements of employee skills and
qualifications for doing that particular job.

Key
Performance Indicators

Key Performance Indicators or KPIs are quantifiable measurements, agreed to beforehand,
which reflect the critical success factors and organizational goals of an organization. They
differ
according to the nature and the field of the organization.

From a performance management point of view, KPIs measure how tasks agreed between
an employee and the person to whom the employee reports, have been carried out in the
agreed time and manner.

Knowledge
Management

Knowledge management refers to a range of practices used by an organisation to identify,
create, categorise, represent, distribute, store insights and experiences as well as enable
their adoption. Such knowledge can be embodied in individuals, organisational processes or
prevailing practice. KM typically focus on improving performance, foster innovation, create
competitive advantage, sharing lessons learnt as well as on continually improving the
organisation and its parts.

KPIs
Key Performance Indicators, which measure the performance of an employee.

KSAs
Knowledge, skills and abilities the personal attributes that a person requires to perform
the job.

Labour
Market

A geographical or economic area of economic exchange in which workers seek jobs and
employers seek workers. Labour markets can be primary labour markets, which provide
secure employment with good benefits and good working conditions or secondary labour
markets, which are occupations with insecure jobs, little benefits and low wages.
25


Labour Permit
Provisional status given by the government to immigrants, allowing them to work legally in
that country, of which they are not citizens, for a stated period of time. The term Work
permit is most commonly used.

Leadership
Development

Formal and informal training and professional development programs designed for
management and executive level employees to assist them develop the leadership skills and
styles required to deal with a variety of situations.

LIFO

In the event of a redundancy situation occurring, the system of last in first out is one
method of choosing those who should be made redundant.

Long-Term
Bonus

Usually a form of deferred compensation that establishes an income stream in the form of a
bonus over time, typically at a predetermined age or upon retirement.

Lump
Sum Payment

In a HR Context, a fixed negotiated payment, which is not typically included in an
employees annual salary but given in place of regular pay increases.

Matrix
Organization

A matrix shaped multifunctional team organizational structure, where vertical hierarchy is
overlaid by some form of lateral authority and where employees from different functional
disciplines (e.g. accounting, marketing, engineering) report to more then one manager or
supervisor without being removed from their respective positions.

Mediation
Services

In a HR context, a system of alternative dispute resolution or the process of intervention by
an independent specialist in an employment dispute.

Mentoring

A one-to-one systematic interaction process between an employee and a senior or more
experienced individual, who acts as an advisor, counsellor or guide. The mentor provides
support and gives feedback to facilitate learning.

Milk
Round

The term Milk round is commonly used in the UK to describe the phenomenon of companies
touring universities and learning institutions each year, in order to advertise their
opportunities and recruit students directly through interviews. Called recruiting
presentation or on-campus presentation is the USA.

Minimum
Wages

The lowest hourly rate an employer can pay an employee. In some countries (e.g. USA) the
government sets this rate by law, while in other countries (e.g. UK) the minimum wages are
26

fixed by the wage council of different industries.



Mission Statement
Is a brief written description of a companys core purpose and focus, which normally
remains unchanged, whereas business strategies and practices may frequently change to
adapt to the changing circumstances. Also called company mission, corporate mission or
corporate purpose.

Motivation

The reason(s) why a person works at a particular job, in a particular role or manner and for a
particular organization. Motivation consists of internal and external factors that stimulate
desire and energy in people to be continually interested in and committed to a job, role, or
subject, and to continue exerting persistent effort.

Motivational
Theories

An attempt to explain how people are motivated, in the form of work behaviour and
performance as a part of the psychological discipline that attempts to describe why people
behave as they do solely in terms of internal needs that drive behaviour. E.g. Acquired
Needs Theory, Consistency Theory, Goal-Setting Theory etc.

Myers-Briggs
Type Indicator

The Myers-Briggs Type Indicator (MBTI) assessment is a psychometric questionnaire
designed to measure psychological preferences in how people perceive the world and make
decisions extrapolated from the typological theories originated by Carl Gustav Jung. The
indicators indicate psychological preferences and not ability, e.g., for performing at a certain
level in a certain function.

Negotiation

Is a process by which the involved parties resolve matters of dispute by holding discussions
and coming to an agreement, which can be mutually agreed by them.

Nepotism

In a business context, nepotism is the practice of showing favouritism toward one's family
members or friends in economic or employment terms. Employing friends and relatives,
without regard to merit, might be considered nepotism.


Non-Discretionary
Bonus

A plan in which management determines the size of the bonus pool and the amounts to be
allocated to specific individuals after a performance period. These use a predetermined
formula and promises.

Observation
Interview

The process of observing employees while they perform their jobs or tasks. It is used to
collect data regarding specific jobs or tasks.

Onboarding

27

Onboarding is the process of integrating employees into their new work environment. A
relatively new term, it is slightly more comprehensive than orientation as it links new
employees with team members very early in the employment process and continuing after
the traditional orientation program ends.

OSH

Occupational safety and health There are laws relating to the health and safety of
personnel at work.

Organizational
Culture

The specific collection of values and norms that are shared by people and groups in an
organization and that control the way they interact with each other and with stakeholders
outside the organization.

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.

Outplacement

The process of facilitating a terminated employee's search for a new job by providing
professional services, such as job counselling, training and assistance paid for by the former
employer as a benefit.

Outsourcing

Outsourcing is the process in which a company delegates some of its in-house
operations/processes to a third party. Outsourcing is different from contracting. In
contracting, generally the ownership or control of the operation/process being contracted
lies with the parent company, whereas in outsourcing the control of the process is with the
third party and not with the parent company. In a HR context, 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.

Peer
Appraisal

A performance appraisal strategy, where an employee is reviewed by his/her peers, who
have sufficient opportunity, scope and expertise to examine the individuals job
performance.

Performance
Improvement Plan

Performance Improvement Plan is a tool to monitor and measure the deficient work
processes and/or behaviours of a particular employee or an unit in order to improve
performance or modify behaviour. It is used when a performance problem (usually of an
employee) has been identified and ways to improve the performance of an employee are
being searched.

Performance
Management

28

A process of identifying, evaluating and developing the work performance of employees in


an organization, in order that organizational objectives are more effectively achieved and
understood by employees. In its broader scope, Performance management is the process of
creating a work environment or setting in which people are enabled to perform to the best
of their abilities. Performance management begins when a job is defined as needed and
ends when an employee leaves the organization.

Performance
Planning

A total approach to managing performance, which involves setting performance aims and
expectations for the organization, departments and individual employees. The performance
plan describes the employees or units preferred results, how results tie back to the
organization's results, weighting of results, how results will be measured and what
standards are used to evaluate results.

Personal
Grievance

Any grievance that an employee may have against the current employer or former
employer. The most common types of personal grievance are dismissals, or threats of
dismissal, sexual harassment, racial harassment, duress, and discrimination. Raising a
Personal Grievance is the main way an employee can get compensation for unfair treatment
at work, or for being unfairly dismissed.

Position
Analysis

A questionnaire used in an organisation to collect quantifiable data about the
responsibilities and requirements of jobs in that particular organisation.

Pre-retirement
Counselling

Counselling provided by employer to employees who are about to retire on matters of
benefits, possibilities of second careers and part-time work etc.

Probation
Period

When hiring new employees, many employers use probationary employment periods to
ascertain whether the new workers will be able to handle the duties and challenges
associated with their new job. Also called trial period. Probation or probationary eriods,
which can be from two weeks to three months (depends on the law of the land), helps the
employer evaluate the employee before making the employment permanent.

Probationary
Arrangements

Where the parties to an employment agreement agree that an employee will serve a period
of probation or trial after the commencement of the employment.

Professional
Development Plan

The Professional Development Plan outlines how the professional capabilities of the
employee will be developed over a defined period. This plan may include formal training,
participation in work related activities (projects or committees), access to coaching,
mentoring or any other opportunities for experience to enhances the skills, knowledge or
personal attributes of the employee.

29

Quality
Management

Quality management is a method or system for ensuring that all the activities necessary to
design, develop and implement a product or service are effective and efficient with respect
to the system and its performance and conform to certain standards. Quality management
has three main components: quality control, quality assurance and quality improvement.
Some examples of quality management systems are: ISO 9000, Six Sigma, Kaizen, Quality
Circles, Taguchi Methods, Total Quality Management etc.

Random
Testing

In an HR context, drug and alcohol tests administered by an employer, which selects
employees to be tested at work in order to detect drug or alcohol usage, on a random basis.

Recruitment


The process of bringing into an organization personnel who will possess the appropriate
education, qualifications, skills, competence and experience for the post offered.

Redundancy

The act of terminating an employment when the requirements for employees to perform
work of a specific type or to conduct it at the location in which they are employed have
ceased or diminished.

Re-Enlistment
Bonus

A payment to encourage expatriates to remain in an assignment beyond the originally
agreed-upon duration. Common in the U.S. military services, where many former military
personnel are employed by U.S. multinationals.

Replacement
Charts

Replacement charts are a human resource forecasting technique or tool, which describes a
firm's organization structure in terms of individuals who occupy various managerial and
professional positions. For each position the incumbent and potential replacements are
identified along with information such as potential for advancement, experience or skills
needed to qualify for next position, gender (for aid in diversity planning), and age (only for
retirement planning). Replacement charts are used in succession planning.

Replacement
Planning

Replacement planning is a process for identifying a potential candidate to replace core
individual employees either known to be leaving the firm at some point in the future and/or
whose sudden departure would pose a risk to the operation of the firm.

Replacement planning is a form of succession planning but more limited in scope as it
assumes that the organization structure remains intact by having back-ups for key people.

Restrictive
Covenant

In a HR context it is a contract clause in the employment agreement requiring key personnel
or other highly skilled employees to refrain from employment with competitor organizations
in a specific geographical region or in a specific business area or from becoming an
30

entrepreneur and competing for a specified period of time after the termination of
employment with the current employer. Some restrictive covenants may be so unfair,
however, that a court may make them legally enforceable.

Rsum
(CV)

A document setting out in brief a persons education, training, professional history, skills,
competences and job qualifications, which is used typically when applying for a job. The
term CV (Curriculum Vitae) is nowadays more common. The term Bio-data is used is a South
Asian context (India, Bangladesh, Nepal, Pakistan).

Retention

Effective employee retention is a systematic effort by employers to create and foster an
environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs.

Return on Investment (ROI)
A ratio of the benefit or profit derived from a specific investment compared to the cost of
the investment itself. ROI measures a companys profitability by dividing a
fiscal
years income by common stock and preferred stock equity plus long-term debt.

The higher ROI, the more efficient the company is in producing profits. In a HR context, it is
usually derived from the actual results or expected performances divided by the sum of
salary and total human resource development investment.

Right
to Manage

The right of management, in most legislation, to make decisions and to run an
organization, determine the organisations mission, strategy and budget without
interference from external or internal forces. Operational rights such as to assign work,
direct, and hire and fire employees are also within the right to manage.

Risk
Management

The policies, procedures and practices used in identification, analysis, assessment, control,
minimization and avoidance or elimination of unacceptable risks by the organisation.
Organisation typically use risk assumption, risk avoidance, risk retention, risk transfer or a
combination of strategies in an effort to minimize an organizations exposure to liability in
the event a loss or injury occurs. "HR risk management" is an integral part of the process of
overall business risk management where HR professionals adopt the techniques of risk
management for managing the value of human capital assets within their organizations.

Severance Pay
A one-time payment given by employers when terminating an employment.

Sexual
Harassment

Unwelcome sexual advances, requests for sexual favours, and other verbal or physical
conduct of a sexual nature constitutes sexual harassment when submission to or rejection of
this conduct explicitly or implicitly affects an individual's employment, interferes with an
individual's work performance or creates an intimidating, hostile or offensive work
environment. Sexual harassment can occur in a variety of circumstances, including but not
31

limited to the following: The victim as well as the harasser may be a woman or a man. The
victim does not have to be of the opposite sex. The harasser can be the victim's supervisor,
an agent of the employer, a supervisor in another area, a co-worker, or a non-employee.

Skill
Based Pay

A person-based compensation system based on the repertoire of skills an employee can
perform, rather than the specific skill that the employee may be using at a particular time.
Pay increases generally are associated with the addition and/or improvement of the skills of
an individual employee, as opposed to better performance or seniority within the system.

Spinoff

An independent company created out of an existing company by distributing new shares,
sale or through a divestiture.

Spot
Bonus

A spontaneous incentive given to an employee for an accomplishment, which is not
measured by a standard.

Stock
options

The right to purchase stock of the employer at a given price at some designated time in the
future. Stock Options usually come in two types: Incentive stock options (ISOs) in which the
employee is able to defer taxation until the shares bought with the option are sold.
Nonqualified stock options (NSOs) in which the employee must pay income tax on the
'spread' between the value of the stock and the amount paid for the option.

Strategic
HRM

Strategic HRM is a general approach to aligning the strategic management of human
resources with the intentions, goals and objectives of the organisation in order to improve
business performance. It is concerned with longer-term people issues and macro-concerns
about structure, quality, culture, values, commitment and matching resources to future
needs.

Strategic
Planning

The process of identifying an organizations long-term goals and objectives and then
determining the best approach for achieving those goals and objectives. Examples of
business analysis techniques used in strategic planning are SWOT analysis (Strengths,
Weaknesses, Opportunities, and Threats), PEST analysis (Political, Economic, Social, and
Technological analysis) or STEER analysis (Socio-cultural, Technological, Economic,
Ecological, and Regulatory factors) and EPISTEL analysis (Environment, Political, Informatic,
Social, Technological, Economic and Legal).

Succession
Planning

Succession planning is a process for identifying potential candidates to replace core
individual employees either known to be leaving the firm at some point in the future and/or
whose sudden departure would pose a risk to the operation of the firm. Succession planning
differs from replacement planning, as it is much broader in scope. The aim is to ensure
organisational stability by identifying critical skill sets and developing methods such as job
32

sharing, job trading, mentoring, coaching, cross training to maintain and develop these skill
sets across the organisation.

Summary
Dismissal

In a HR context, Summary Dismissal is immediate termination of the employment by an
employer for gross misconduct (e.g., stealing or violence at work) and usually means that an
employee will not receive any pay in lieu of notice.

Suspension

A form of disciplinary action resulting in an employee being sent home with or without pay
and forbidden to come to work for a specified period of time.

Tacit
Knowledge

Highly experiential, difficult to document in any detail, ephemeral, transitory knowledge
internalized by an employee over a long period of time. The process of transforming tacit
knowledge into explicit knowledge, known as codification or articulation is very difficult.

Tangible
Rewards

Rewards to employee for performance, distinct from regular pay, which can be easily
attributed and linked to behaviour or performance. Tangible rewards usually exhibit trophy
value and can be appreciated and benchmarked in terms of monetary value and features
(e.g., theatre tickets with spouse or gift voucher).

Target
Compensation

The expected pay for a position, including both base pay and at-risk pay. The variable
portion of target compensation is based on what the employee ought to earn on average,
given satisfactory performance. High performers will exceed target earnings and poor
performers will fall short of the target.

Termination
Interview

The situation when the employee is officially told that his/her employment is being
terminated.


Total
Compensation

The total cash remuneration plus the valued perquisites and benefits awarded employees
on an annual basis. In valuing perquisites and benefits, values to facilities provided to
employees that have to be claimed before being paid, and also the value of long-term
benefits
are usually included.

Typical items included are medical expenses, vacation tickets, childrens education, terminal
benefits (gratuity, provident fund, social security), share purchase plans, club memberships
etc. Also known as total remuneration.

Total
Direct Compensation

In executive compensation, total annual cash compensation plus the annualized value of
long-term incentives.

33

Total
Rewards

The monetary and non-monetary compensation provided to employees in exchange for
their time, talents, efforts and results. Total rewards include key elements that effectively
attract, motivate and retain the talent required to achieve desired business results. Total
rewards can be seen to include compensation, benefits, work-life balance, career
development, recognition programmes.

Total
Rewards Statement

An annual statement issued individually to each employee of an organization that quantifies
the total value of his or her rewards received in the previous calendar year. Statement
includes income from all compensation sources as well as the cash value of all benefits and
work experience elements received. The objective of the statement is to communicate the
value of employer expenditures on behalf of each employee.

Training
Needs Analysis

A method of analyzing how employee skill deficits can be addressed through current or
future
training and professional development programs, as well as determining the

types and frequency of training/development programs required, and how to prioritize
training/development.

Turnover

In a HR context, turnover is the number of employees hired to replace those who left or
were fired during a 12-month period.

Unions
Groups of workers who have joined to form incorporated associations relating to the type of
work that they perform in order to protect their common interests and improve their
working conditions.

Unjustifiable
Dismissal

The act of terminating an employees employment for a reason that can be regarded as
statutorily (legally) unjustifiable or the dismissal has been carried out in an unfair way. Many
countries in the world offer statutory protection against an unjustified dismissal. In England,
the term used is unfair dismissal. Other terms used elsewhere are: unfair dismissal ,
dismissal without just cause or excuse, harsh, unjust and unreasonable dismissal .

Wage
Curve

In a HR context, it depicts pay rates currently being paid for each job within a pay grade in
relation with the rankings awarded to each job during the job evaluation process. In
economics, wage curve is the term used to describe the micro-econometric association
between the level of pay and the local unemployment rate.

Wage
Drift

The gap between the basic pay often based on collective agreement rate and the total
remunerations actually paid. This difference is usually caused by overtime pay, bonuses,
profit-share and performance-related pay.

34

Whistle
Blower

A person who reveals wrongdoing within an organization to the public or to those in
positions of authority. In some countries, whistle blower protection is contained in law e.g.,
the Protected Disclosures Act 2000 in the USA.

Work-Life
Balance

Work-life balance is a concept for prioritizing between career and ambitions and family,
leisure, pleasure and spiritual development. Work-life balance is not the same for everyone
as people have different priorities in life.

360-degree
Feedback

A performance appraisal process, where an employee is rated on his/her performance by
people who are directly connected with his/her work. Peers, supervisors, managers,
customers or clients, familiar with the employees work can be included in the feedback
process. Typically used for assessing competence development needs and succession
planning in the organisation rather than for determining pay or promotions. Also called
multi-rater assessment, multi-source assessment or multi-source feedback.




















35

50 Tough Interview Questions



You and Your Accomplishments

Tell me a little about yourself.

Because this is often the opening question, be careful that you dont run off at the mouth.
Keep your answer to a minute or two, and consider four topics:
Early Years
Education
Work History
Recent Career Experience


2. What can you do for us that some else cant?

Here you have every right and perhaps obligation to toot your own horn and be a bit
egotistical.
Talk about your record of getting things done.
Mention specifics from your resume or inventory of accomplishments
Say that your skills and interests, combined with history of getting things done, makes
you valuable.

Mention ability to set priorities, identify problems, and use your experience and ability to
solve them.


3. Why should we hire you?

Create your answer by thinking in terms of your ability, your experience, and your energy. See
Question 2 for more detail.

4. What do you look for in a job?

Keep you answer oriented toward the opportunities at the organization.
Talk about desire to perform and be recognized for contributions
Orient your answer toward opportunities rather than personal security


5. How long would it take you to make a meaningful contribution to our firm?

Be realistic.
Say that, while you would expect to meet pressing demands and pull your own weight from
the first day, it might take six months to a year before you could expect to know the
organization and its needs enough to make a major contribution.


6. Did you change the nature of your job?

Tell how you improved it.

7. Can you work under pressure and deal with deadlines?



Observe that both are facts of business life.
36

Take examples from your list of accomplishments to show how you have dealt
successfully with pressure and deadlines in the past.

8. In your present (last) position, what problems did you identify that had previously been
overlooked?

Be brief and dont brag. Indicate the positive changes your suggestions or leadership
resulting in.

9. If you could start your career over again what would you do differently?

The best answer is, Not a thing.
You should try to present yourself as a person who is happy with his or her life.
Youve enjoyed its ups and learned from its downs.
You would not, as a result, want to change things that brought you to where you are
today.
Mention that it is the past, after all, that has prepared you for this position.


10. What career options do you have at this moment?

You should try to identify three areas of interest, one of which includes this company and job.
The other two should be in related fields.


11. How would you define success?

Think in terms of a sense of well-being.
Consider opportunity and responsibility as components of success.

12. How successful do you think youve been so far?



Say that, all in all, youre happy with the way you career has progressed.
Given the normal ups and downs of life, you feel that youve done quite well and expect to
continue to succeed in the future.
Present a positive and confident picture of yourself, but dont overstate your case. An
answer like, Everything is wonderful; Im overjoyed! is likely to make an
interviewer wonder whether youre trying to fool him or yourself. The most convincing
confidence is quiet confidence.



Our Organization

13. What do you know about our organization?

You should be able to discuss the following:


Production Services
Revenues
Reputation
Image

Goals
Management Style
People
History and Philosophy

However, dont act as if you know everything about the place.


Let answers show that you have taken the time to do some research, but dont overwhelm
37

the interviewer.
Make it clear that you wish to learn more.
Give answers in a positive tone. Dont say, Well, everyone tells me the companys in a heap
of trouble, and thats why Im here even if it is why youre there.

14. Tell us why you want to work for us?



The deadliest answer you can give is Because I like people. What else would you like
animals? Here and throughout the interview, a good answer comes from having done your
homework so you can speak in terms of the companys need.
You might say your research has shown that the company is doing things you would like to
be involved with, and that its been doing them in ways that interest you.

If the company is known for strong management, your answer should be you would like to be
part of that team.
If the company puts a great deal of emphasis on research and development emphasize the fact
that you want to create new things and you know this is a place where inventiveness is
encouraged.
If the organization stresses financial controls, your answer should mention a reverence for
numbers.

If you feel that you have to concoct an answer to this question, then you probably shouldnt be
taking the interview, because you probably shouldnt be considering a job with that
organization. Your homework should include learning enough about the company to avoid
approaching places where you wouldnt be able or wouldnt want to function.


15. Please give me the definition of (the position for which you are being interviewed).

Keep you answers brief and task oriented.
Think in terms of responsibilities and accountability.
Make sure that you really do understand what the position involves before you attempt an
answer.
If you arent sure, ask the interviewer, he or she may answer the question for you.


16. Do you prefer staff or line work?

Say that it depends of the job and its challenge.


17. Dont you think you might be better suited for a different size company? To a different type
company?

Tailor you answer to the job being discussed.
Say that your preferences for the size or type of company generally depend on the job in
question.
Note that your research has shown you that this organization and this job meet you
criteria.

18. If you could choose any company, where would you go?

Talk about the job and the company for which you are being interviewed.

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19. What other jobs are you considering?



Restrict your answer to fields similar to the one in which this company operates.


20. What are your long-range goals?

Refer back to the self-assessment phase of your career continuation efforts. Dont answer, I
want the job youve advertised.
Relate your goals to the company youre interviewing for: In a firm like yours, I would like
to .

21. What do you find most attractive about this position? What seems least attractive about it?

List three or four attractive features of the job, and mention a single, minor, unattractive
item.

22. In your current (last) position, what features do (did) you like the most? The least?

Be careful and be positive. Describe more features that you liked than disliked.
Dont site personality problems.
If you make your last job sound terrible, an interviewer may wonder why youve remained
there until now, or whether you have an attitude problem that would be likely to show up
on a new job, too.


23. In your current (last) position, what have been (were) your five most significant
accomplishments?

Have specific examples ready.
If you are asked for five examples, dont cite ten.
If you want to show that you were responsible for more than five achievements, you can say,
Ive given you five that seem the most important to me. There are others, if youd like to
hear about some other area of my work Then if the interviewer asks for additional
accomplishments, you can give them without appearing to boast.

24. How long will you stay with us?



Say that you are interested in a career with the organization, but admit that you would have to
continue to feel challenged to remain with an organization. Think in terms of, As long as we
both feel achievement oriented.

25. Your resume suggests that you may be overqualified or too experienced for this
position. What do you think?

Emphasize your interest in establishing a long term association with the organization, and say
that you assume if you perform well in this job, new opportunities will open up for you.
Mention that a strong company needs a strong staff.
Observe that individuals are always at a premium
Suggest that because you are so well qualified, the company will get a fast return on
investment.
Say that a growing, growing, energetic company can never have too much talent.
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Management Style

26. What is your management style?



You should know enough about the companys style to know that your management style will
compliment it. Possible styles include:
Task oriented (Problem solving)
Results oriented (Effect on bottom line)
Participative style (open-door method motivating people and delegating)


27. Are you a good manager? Can you give me some examples? Do you feel that you have top
management potential?

Keep your answer achievement and task-oriented.
Rely on examples from your career to support your statements.
Stress your experience and your energy.


28. What do you think is the most difficult thing about being a manager or an executive?

Mention planning, execution, and cost control.
The most difficult task may be to motivate and manage employees to get tasks routinely
planned and completed on time and within budget.

29. Do you consider yourself a leader?

Take examples from your work experience.


30. What do you look for when you hire people?

Think in terms of skills, initiative, and adaptability to work comfortably and productively with
others.
Mention that you like to hire people who appear capable of moving up in an
organization.

31. Have you ever had to fire people? What were the reasons, and how did you handle the
situation?

Admit that the situation wasnt easy, but say that it worked out well, both for the company
and, you think for the individual or individuals involved.
Show that, like anyone else, you dont enjoy unpleasant tasks, but that you can resolve
them efficiently and, in the case of firing someone, humanely.




Industry Trends

32.




What important trends do you see in our industry?


Be prepared with two or three trends that illustrate how well you understand your industry.
You might consider technological challenges or opportunities
Economic conditions
Current competitive situation
Regulatory demands related to the direction in which your business is heading.
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33. What are the frontier or cutting-edge issues in our industry?



Be prepared with two or three key issues.




Reasons for Your Search (or Why You Are Out of Work)

34. Why are you leaving (did leave) your present (last) position?

Be brief, to the point, and as honest as you can without hurting yourself.
Refer back to the planning phase of your job search, where you considered this topic as you
thought about reference statements.
If you were laid off in a staff reduction, say so
Otherwise indicate that the move was your decision, the result of your desire to advance
your career.

Dont mention personality conflicts.



The interviewer may spend some time probing you on this issue, particularly if its clear that
you were terminated. Be as positive and honest as you can. The We agreed to disagree
approach suggested earlier may be useful.

Dont fabricate a story for an interview; even in todays reference-shy climate, your story may
be checked.


35. Why havent you found a job before now?

Say that finding a job isnt difficult, but that finding the right job deserves time and demands
careful planning.

36. Did you think of leaving your present position before? If so, what do you think held you there?

You might say that the challenge of the job held you in the past but, as that seemed to
diminish; you reached the decision to investigate new opportunities.


37. What do you think of your (former) boss?

Be as positive as you can.
A potential boss will anticipate that you might talk about him or her in similar terms at
some point in the future.


38. Will you be out to take your bosss job?

Say that while you certainly hope to win additional responsibility in the organization, youve
always focused on getting the current job done.



Strengths and Weaknesses

39. Would you describe a few situations in which your work was criticized?

Be specific. Dont be emotional.
Think in terms of constructive criticism

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Show that you responded positively and benefited from that criticism.

40. If I spoke with your (former) boss, what would he or she say are your greatest strengths and
weaknesses?

Name three or four strengths and only one weakness. Be honest but not negative.

41. What are your strong points?



Present at least three.
Use concrete, work-related examples to illustrate them.
Try to relate your answer to the interviewing organization and the specific job opening.


42.



What are your weak points?


Dont say you have none. But try to make a negative sound like a strength carried a bit to far.
I sometimes get impatient and become deeply involved when a project is running late.
Dont offer a list of weaknesses
A good interviewer may press you a bit by saying, Is there anything else? You might
answer No, I dont think so on that topic.
If the interviewer persist, come up with a second weakness, but only if you are asked for it.
Dont offer negative information unnecessarily.
If the interviewer continues and asks for a third weakness, say politely that you really
cant think of anything else.
Finally, show that you are working to correct your weaknesses.


Salary-Related Questions

43. Why arent you earning more at your age?



Say that is one reason youre conducting this job search. Dont be defensive.

44. What do you feel this position should pay?



Salary
is a delicate topic.

We suggest that you defer tying yourself to a precise figure for as long as you can do it
politely.
You might say, I understand that the range for this job is between $X and $Y. That seem
appropriate for the job as I understand it.
You might answer the question with a question. Perhaps you can help me on this one. Can
you tell me if there is a range for similar jobs in the organization?
If youre asked the question during an initial screening interview, you might say that you feel
you need to know more about the responsibilities involved before giving a meaningful answer.
Here too, either by asking the interviewer or doing research during your investigation of the
company, you can try to find out whether there is a salary grade attached to the job. If there
is, and if you can live with it, say that the range seems right to you.
If the interviewer continues to probe, you might say, You know I am making $X now. Like
everyone else, Id like to improve on that figure, but my major interest is in the job itself.
Remember the act of taking a new job does not, in and of itself, make you worth more money.
If no price range is attached to the job, and the interviewer continues to press the subject, then
42

you will have to respond with a number. You cant leave the impression that it doesnt really
matter, that youll accept what ever is offered. If youve been making $96,000 annually, you cant
say that a $42,000 figure would be fine without sounding like you are giving up on yourself. (If
you are making a radical career change, however, a substantial disparity may be more
reasonable and understandable)
Dont sell yourself short, but continue to stress the fact that the job itself is the most important
thing in your mind. The interviewer may be trying to determine just how much you want the job.
Dont leave the impression that money is the only thing important to you. Link questions of
salary to the work itself.
If a search firm is involved, your contact there may be able to help with the salary question.
A search firm representative may even be able to run interference for you. If, for instance,
this person tells you what the position pays, and you respond that you are earning that
amount now and would like to do a bit better, he or she might go back to the employer and
purpose that you be offered an additional ten percent.
But, whenever possible, say as little as you can about salary until you reach the final
stage of the interviewing process. At that point, you know the company is genuinely
interested in you and is more likely to be flexible in salary negotiations.




Personality Traits

45. Do you have any objection to psychological tests?



Say you would feel comfortable taking them.

46. Do you speak to others before they speak to you?

The interviewer is probably trying to determine your ability to deal with unstable or
unanticipated situations.
Say that your actions depend on specific circumstances.
While you wouldnt normally start a conversation with a stranger on the street, for
example, you feel comfortable initiating discussions with people you dont know in
normal business or social settings.

47. What was the last book you read? Movie you saw? Sporting event you attended?

Try to show that you lead a balanced life when answering questions about outside activities.

48. Are you creative?

Be prepared with work related examples of creativity.

49. How would you describe your own personality?



It may be wise to say you are the proud owner of a balanced personality.




When Can You Start?

50. When could you start?



Be prepared to give a date or commit to a time and date that you can commit to a start date.
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Are you offering the position to me now? might be a good response if an offer has not yet
been made.




VIDEOS:

http://www.youtube.com/watch?v=Fa8E3tCDIpo&list=PL613588E03E0E3744

http://www.youtube.com/watch?v=kB06Fjd-ZKY

http://www.youtube.com/watch?v=gV1_n4Ni6Fg

http://nptel.ac.in/courses/110105033/

SOME MORE READINGS:


http://corehr.wordpress.com/2013/08/21/current-trends-in-human-resource-management/

http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Trade+Union/
https://www.boundless.com/management/human-resource-management--2/current-
topics-in-human-resource-management/

BLOGS: Ramkumar and HBR


http://www.shrmindia.org/knowledge-center/strategic-hrm/hr-strategy/workplaces-arenot-
retreats-create-happiness-says-k-ramkumar

http://theotherview.in/

http://forbesindia.com/blog/author/k-ramkumar/

http://hbsp.harvard.edu/list/hbr-case-study#HR
Books:

Human Resource Proposition by Dave Ulrich


Human resource Champion by Dave Ulrich

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