Glossary Chapter 13 360-degree feedback a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and co-workers, and the employees themselves assessment centres a series of managerial simulations, graded by trained observers, that are used to determine applicants’ capability for managerial work background checks procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants behavioural observation scales (BOS) rating scales that indicate the frequency with which workers perform specific behaviours that are representative of the job dimensions critical to successful job performance biographical data (biodata) extensive surveys that ask applicants questions about their personal backgrounds and life experiences cafeteria benefit plans (flexible benefit plans) plans that allow employees to choose which benefits they receive, up to a certain dollar value cognitive ability tests tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude commission a compensation system in which employees earn a percentage of each sale they make compensation the financial and nonfinancial rewards that organizations give employees in exchange for their work downsizing the planned elimination of jobs in a company dysfunctional turnover loss of high-performing employees who voluntarily choose to leave a company early retirement incentive programs (ERIPs) programs that offer financial benefits to employees to encourage them to retire early employee separation the voluntary or involuntary loss of an employee employee stock ownership plans (ESOPs) a compensation system that awards employees shares of company stock in addition to their regular compensation employee turnover loss of employees who voluntarily choose to leave the company employment benefits a method of rewarding employees that includes virtually any kind of compensation other than wages or salaries employment references sources such as previous employers or co-workers who can provide job-related information about job candidates external recruiting the process of developing a pool of qualified job applicants from outside the company flexible benefit plans plans that allow employees to choose which benefits they receive, up to a certain dollar value functional turnover loss of poor-performing employees who voluntarily choose to leave a company hostile work environment form of sexual harassment in which unwelcome and demeaning sexually related behaviour creates an intimidating and offensive work environment human resource information systems (HRIS) computerized systems for gathering, analyzing, storing, and disseminating information related to the HRM process human resource management the process of finding, developing, and keeping the right people to form a qualified work force human resource planning (HRP) using an organization’s goals and strategy to forecast the organization’s human resource needs in terms of attracting, developing, and keeping a qualified workforce internal recruiting the process of developing a pool of qualified job applicants from people who already work in the company interviews selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job job analysis a purposeful, systematic process for collecting information on the important work-related aspects of a job job description a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job job evaluation a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it job specifications a written summary of the qualifications needed to successfully perform a particular job needs assessment the process of identifying and prioritizing the learning needs of employees objective performance measures measures of job performance that are easily and directly counted or quantified outplacement services employment-counselling services offered to employees who are losing their jobs because of downsizing performance appraisal the process of assessing how well employees are doing their jobs personality tests tests that measure the extent to which applicants possess different kinds of job-related personality dimensions piecework a compensation system in which employees are paid a set rate for each item they produce profit sharing a compensation system in which a percentage of company profits is paid to employees in addition to their regular compensation quid pro quo sexual harassment form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to sexual harassment rater training training performance appraisal raters in how to avoid rating errors and increase rating accuracy recruiting the process of developing a pool of qualified job applicants reliability the degree to which a measure (test) is free from random error and is consistent selection the process of gathering information about job applicants to decide who should be offered a job sexual harassment form of discrimination in which unwelcome sexual advances, requests for sexual favours, or other verbal or physical conduct of a sexual nature occur while performing one’s job specific ability tests (aptitude tests) tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well stock options a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price structured interviews interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioural, background, and job-knowledge questions subjective performance measures measures of job performance that require someone to judge or assess a worker’s performance training developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance trait rating scales a rating scale that indicates the extent to which a worker possesses particular traits or characteristics validation the process of determining how well a selection test or procedure predicts future job performance. The better or more accurate the prediction of future job performance, the more valid a test is said to be. validity the degree to which a measure (selection technique) is shown to accurately predict what it is expected measure (job performance) work sample tests tests that require applicants to perform tasks that are actually done on the job workforce forecasting the process of predicting the number and kind of workers with specific skills and abilities that an organization will need in the future wrongful dismissal a legal doctrine that requires employers to have a job-related reason to terminate employees