Human Resource Glossary
for HR Terms

ABCDEFGHIJKLMNOPQRSTUVWXYZ#

A

Abilene Paradox

The Abilene Paradox is a state wherein a collective decision is made by a group that contradicts...

Read More

Absconding

In simple terms, absconding is a situation where an employee leaves the organization without any...

Read More

Absenteeism Policy

Absenteeism policy is a list of rules and processes to help employers minimize their employee’s...

Read More

Absolute Ratings

Absolute rating is a method used for determining the employee’s performance appraisals. During...

Read More

Agile HR

Agile HR refers to structuring the HR functions to facilitate the quick adaption of situations...

Read More

Applicant Tracking System

ATS, an abbreviation for "Applicant Tracking System," is a type of recruiting software that helps...

Read More

Appraisal

An “Appraisal” is an act that measures the employee’s performance based on the predefined goals...

Read More

Appraisal Letter

Appraisal letters are written by the HR managers specifically to praise the employees for their...

Read More

Apprenticeship

Apprenticeship is the period of training for aspiring individuals who wish to master the skills...

Read More

Assessment Centres

An assessment centre is a process used by the organization for candidates training or development...

Read More

Attendance Policy

The attendance policy’s objective is to put forth the company’s policies and procedures to handle...

Read More

Attrition

Attrition literally means the reduction in the workforces strength of an organization as a result...

Read More

B

Background Check

Background check is a process by which an organization verifies the validity of the candidate who...

Read More

Background Verification

Background verification is the practice of verifying the authenticity of the candidate’s identity...

Read More

Balanced Scorecard

A balanced scorecard is a management system of measuring organizational strategies with performance.

Read More

Basic Salary

Basic salary is defined as the amount an employee earns before making any addition or deduction to..

Read More

Behavioral Competency

Behavioral competency is a kind of evaluation an employer makes while hiring, based on the...

Read More

Behaviorally Anchored Rating Scale

BARS is a framework mainly designed to consider the benefits of qualitative and quantitative data...

Read More

Bell Curve

Performance assessment using a bell curve demands groups of people to be classified as poor, ...

Read More

Benchmarking

Benchmarking is a process wherein certain important and key parameters that drive an organization...

Read More

Bonus

Bonuses are a kind of statutory pay offered to the employees as per the Bonus Act. It is offered...

Read More

Bumping

Bumping is a practice followed by many organizations to reserve the talent pool when it goes...

Read More

Business Process Outsourcing

Business Process Outsourcing, also known as BPO which means to allow a part of the business’s ...

Read More

C

Career Break

A career break is a period of time off from employment that is mutually agreed upon by the...

Read More

Career Path

A career path is an employee’s professional progression towards career goals that include a series..

Read More

Change Management

Change management is a systematic approach to the transition of organizations from the present...

Read More

Churn Rate

Churn rate, also known as attrition rate, refers to the customers’/employees’ discontinuation of...

Read More

Coaching

Coaching is generally the guidance towards unlocking an individual’s potential and offering help...

Read More

Compensation And Benefits

Compensation and benefits include the salary or other monetary and non-monetary benefits offered...

Read More

Compensatory Off

Compensatory off is a time off entitled to an employee for working on paid holiday or a week off ...

Read More

Competency

The combination of observable and measurable attributes that contribute to enhanced employee ...

Read More

Competency-based Pay

Competence-based pay is an organization’s pay system, wherein the payment is determined based on...

Read More

Confidentiality Agreement

An agreement signed between an employer and employee wherein the employee agrees not to share...

Read More

Confirmation Letter

An official letter offered to a new employee confirming the employment upon completing the...

Read More

Cost-per-hire

Cost-Per-Hire refers to the total cost incurred in hiring a new employee to the company...

Read More

Cross-functional Team

A cross-functional team is a group that is made up of members from different departments of an...

Read More

CTC

CTC stands for “Cost To Company,” which is a commonly used HRM terminology. It’s the total spend...

Read More

D

Deferred Compensation

Deferred compensation is a compensation plan that allows employees to defer compensation earned...

Read More

Delayering

Delayering is the process of eliminating the layers of an organization’s hierarchy between the...

Read More

Disciplinary Procedure

A good disciplinary procedure is one that every professionally run organization possesses as a...

Read More

Downshifting

Downshifting, in a workplace context refers to the attempts of an employee to find an appropriate...

Read More

E

E-recruitment

E-recruitment is a term used for electronic-based hiring and its management. The software used...

Read More

Employee Assessments

Employees’ assessment or evaluation is the process of measuring an employee’s job performance...

Read More

Employee Benefits Administration

Employee benefits are considered to be a component of reward management. They are also known as...

Read More

Employee Clearance

Employee clearance is the initial part of the FNF (Full & Final) settlement process that occurs...

Read More

Employee Database

An employee database is a software where all the critical information of the employees is stored...

Read More

Employee Empowerment

A philosophy that emphasizes the importance of granting employees a certain level of autonomy to...

Read More

Employee Engagement

The level of dedication and enthusiasm employees experience towards their job and company is...

Read More

Employee Lifecycle

The different stages an employee goes through in an organization, from recruitment to retirement...

Read More

Employee Net Promoter Score

The measurement system undertaken to identify the satisfaction level of employees and how willing...

Read More

Employee Onboarding

The process of assisting the new hires onboard into an organization is called employee onboarding...

Read More

Employee Orientation

The process of Introducing the new hire to the workplace is called employee orientation. It’s...

Read More

Employee Referral Program

An organized activity wherein the employer asks the company’s employees to refer candidates for...

Read More

Employee Relations

Creating, practicing, and maintaining a positive relationship between the employee and the...

Read More

Employee Retention

The strategy which helps in retaining and attracting the existing employees of an organization is...

Read More

Employee Satisfaction

Employee satisfaction is one of the broad terms commonly used in organizations. It is the extent...

Read More

Employee Self Service

Employee self-service is a feature that allows the employees to perform certain tasks on their...

Read More

Employee Turnover

Employee turnover is a term that refers to the cycle of hiring and firing that takes place within...

Read More

Employee Value Proposition

The promise of rewards and benefits an employer makes to the employee in return for their...

Read More

Employer Branding

The process of managing the organization's reputation from the potential employer's perspective...

Read More

Employment History

A record that includes all the previous job information of the applicant is referred to...

Read More

Enterprise Resource Planning (ERP)

A system that’s designed around a single and defined data structure, which has a common database,...

Read More

Equity Theory

Equity theory at the workplace states that employees wish to maintain a fair ratio between their...

Read More

Exit Interview

An exit interview is an activity conducted with an employee, generally on their last working day...

Read More

Expatriate

Expatriate is the term used for employees who are sent by the company to live and/or work in a...

Read More

F

Factor Comparison

A systematic method of evaluating a job based on various factors instead of evaluating the job as...

Read More

Five-factor Model

Five factor model is a theory based on the concept called ‘Big Five Personality Traits.’ The five...

Read More

Floating Holidays

Floating holidays are a kind of paid vacation offered to employees by the company. The employees...

Read More

Forced Ranking

Forced ranking is a method to measure and rank the employees’ performance by comparing them with...

Read More

Functional Job Analysis

A method used by the HR department to assess the job roles in an organization is called...

Read More

G

Gamification

HR gamification is a process of applying the behavioral and motivational techniques of games into...

Read More

Gender Divide

The gender divide refers to the differences in treating men and women in the workplace...

Read More

Generation X

Generation X comprises all those born between 1965 to early 80s. It is essential for the HR...

Read More

Generation Z

Generation Z, also called post-millennials, iGeneration, etc., comprises all those born between...

Read More

Gig Economy

An economy wherein a company relies on independent contractors or freelancers more than full-time...

Read More

Golden Handcuffs

A special provision of financial or non-financial benefits offered to employees who contribute...

Read More

Gratuity

Gratuity is offered to the employees who have served the company for the number of years...

Read More

Grievance

A grievance is when the employees are dissatisfied with the company’s policies, working...

Read More

Gross Misconduct

Gross misconduct is a situation wherein an employee’s negative behavior or action contradicts the...

Read More

Gross Salary

Gross salary refers to the total amount an employee earns before any deductions such as tax, PF,...

Read More

H

Hawthorne Effect

Hawthorne Effect is an approach brought forth by Elton Mayo. This approach in HR functions...

Read More

Hierarchy Of Needs

Hierarchy of Needs is a theory proposed by Abraham Maslow. It's a five-tier model of human needs,...

Read More

HR Audit

An HR Audit is the process of evaluating the HR department’s performance, activities, and...

Read More

HR Business Partner

A professional who has expertise in the HR field and works closely with the board of directors...

Read More

HR Consulting

Seeking advice, suggestions, and guidance from the third-party firm or individual experts for the...

Read More

HR Generalist

A professional who looks after the overall activities of a company’s human resources is known as...

Read More

Human Capital Management

A set of practices a company uses for recruiting, managing, and developing employees is called...

Read More

Human Resource Information System

HRIS is a system that automates and eases all HR activities with enhanced accuracy. It also...

Read More

Human Resource Management

Human resource management is a strategic and comprehensive approach to manage the people,...

Read More

Human Resource Management System

An HRMS is a system that helps HR in managing and streamlining the employee-related functions...

Read More

Human Resource Outsourcing

The process of transferring certain HR-related tasks to a third party on a contractual basis is...

Read More

Human Resources Analytics

HR analytics refers to the data-driven process of improving return on investment, employee...

Read More

I

Incentive Pay

A type of variable pay offered to the employees as a reward for accomplishing the set performance...

Read More

Induction

Induction refers to the process of introducing the new employee to the company’s culture,...

Read More

Informal Communication

The casual communication among the coworkers in the company is called informal communication. It...

Read More

Internship

A professional on-the-job learning experience offered to the students for practical knowledge is...

Read More

J

Job Analysis

Job analysis is the process of gathering all the necessary information about the requirements for...

Read More

Job Board

A job board is an online website used by employers to advertise their job vacancies, while job...

Read More

Job Classification

Job classification is a process of comparing a job using predefined standards. It is done to...

Read More

Job Description

A job description is an informative factor that describes the duties, tasks, scope, and...

Read More

Job Evaluation

Job evaluation is a process of determining a job’s worth compared to the other jobs in an...

Read More

Job Rotation

Job rotation is a process of shifting the employees to different roles within an organization...

Read More

Johari Window

Johari Window is a psychological technique that describes the relationship and mutual...

Read More

K

Key Performance Indicators

Key Performance Indicators are a measurable value that describes the effectiveness of an employee...

Read More

Key Result Areas

KRAs are the strategic internal and external areas that a company identifies to be its strength...

Read More

Knowledge Management

Knowledge management is an integrated approach that promotes identifying, capturing, evaluating,...

Read More

KSAs

KSA, which stands for Knowledge, Skills, and Abilities, describes the candidate's qualifications...

Read More

L

Labor Union

Labor unions, also called trade unions, is a formal group formed by the workers in an...

Read More

Lateral Recruitment

Lateral recruitment refers to filling the higher-level vacant position with employees who have...

Read More

Layoff

A situation wherein the employer terminates the employees either permanently or temporarily due...

Read More

Leadership Development

Leadership development is the series of activities undertaken by the company to improve the...

Read More

Learning And Development

Learning and development is a crucial sub-function of HR for the company’s workforce development...

Read More

Learning Management System

A learning management system is a platform wherein all the learning initiatives of an...

Read More

M

Management By Objective

MBO is a strategic management model that strives to improve an organization’s performance by...

Read More

Management Styles

The principles of leadership a manager adopts to perform his job and handle situations in the...

Read More

Management Training

An activity undertaken to enhance the managerial skills of an individual leader or manager is...

Read More

Matrix Organization

An organizational structure where there is more than one line of reporting manager is known as a...

Read More

Mean Wage

An employee's average salary in the given period of time is called a mean wage, and it is often...

Read More

Mentoring

A more holistic approach taken towards career development beyond one’s current performance is...

Read More

Merit Pay

A payment made to an employee for achieving the specified target or objective is called merit pay...

Read More

N

Nepotism

A term used to describe the unfair practice wherein the one in power favors an individual...

Read More

Net Salary

Net salary is the amount paid to the employee after all the necessary deductions are made from...

Read More

Nondisclosure Agreement

NDA is an agreement signed by the employee and the company, agreeing not to disclose any...

Read More

O

Objectives And Key Results (OKR)

A framework that helps organizations implement and execute goal management strategies with...

Read More

Occupational Stress

Occupational stress is a scenario wherein an employee experiences undesired physical and...

Read More

Offer Letter

An offer letter is a written document offered to a candidate once he/she is selected for the...

Read More

Offshoring

The process of either relocating the business or outsourcing its operations to a different...

Read More

Onboarding

Onboarding is a process of introducing the newly hired employee to the company. It is an...

Read More

Organizational Change

Organizational change refers to the modification of various components of the company for its...

Read More

Organizational Culture

The shared values, beliefs, attitudes, vision, or behaviors, developed over time and identified...

Read More

Organizational Development

Organizational development focuses on increased communication to influence employees to bring...

Read More

Orientation

A program designed to provide the new employee with sufficient information about the company to...

Read More

Outsourcing

The practice of giving a part of the company’s work/process to a third party is called...

Read More

P

People Analytics

A data-driven study of employees’ processes, functions, opportunities, and challenges at work is...

Read More

People Operations

A strategic business function that prioritizes the employees’ role by improving their engagement,...

Read More

Performance Appraisal

A regular periodic review and evaluation of employees’ job performance and contribution to the...

Read More

Performance Improvement

Performance improvement is a strategy initiated to help low-performing employees meet the...

Read More

Performance Improvement Plan

A planned opportunity offered to the employees to succeed in their performance is called a...

Read More

Performance Management

Performance management is an activity wherein the manager monitors and evaluates the employee’s...

Read More

Performance Management Cycle

The performance management cycle is an essential factor that depicts the different stages of...

Read More

Performance Planning

Performance planning is the first stage of performance management that provides a clear and...

Read More

Probationary Arrangements

An agreement between the employers and new employees wherein the latter agrees to work for the...

Read More

Probationary Period

A probationary period is a defined trial or experimental period to identify if the new employee...

Read More

Psychometric Test

A scientific method of testing employed by the organizations to analyze the behavioral aspect of...

Read More

Q

Quality management

Quality management is an approach practiced to ensure that the company’s product or service meets...

Read More

Queen Bee Syndrome

A scenario in an organization where women in higher authority tend to ill-treat their women...

Read More

R

Recruitment

The process of analyzing the job requirements, attracting, screening, identifying, and hiring...

Read More

Recruitment Software

Software that automates and optimizes an organization’s hiring process, such as identifying the...

Read More

Redundancy

A scenario wherein an employer decides to reduce the workforce by terminating some employees is...

Read More

Relieving Letter

A formal letter offered to the employees as they leave the company, denoting that their...

Read More

Remuneration

Remuneration is defined as the total earnings of the employee in return for his/her work. Along...

Read More

Request For Proposal

A document that the companies use to collect information regarding the product/service from a...

Read More

Restricted Holidays

Restricted holidays, aka optional holidays, are the holidays for which the employees have on...

Read More

Retention Strategy

The practices deployed by the companies to reduce its employee turnover rate and increase its...

Read More

Reverse Mentoring

A workplace initiative wherein the senior employees are mentored by the younger employees is...

Read More

Rewards And Recognition

A practice wherein the performance of the employees is acknowledged, appreciated, awarded, and...

Read More

Right To Manage

The authority or mandate offered to the managers to govern the organization in a way that fits...

Read More

Risk Management In HR

HR risk management is an approach to identifying the potential risks the employees pose and...

Read More

Roster Management

Roster management refers to a practice of listing out the information related to the employees’...

Read More

Rotational Training

Rotational training is a kind of strategy wherein the employees are provided an opportunity to...

Read More

S

Sabbatical Leave

A leave facility offered to the employees to undergo special training, higher education, or skill...

Read More

Sensitivity Training

Sensitivity training is a development technique undertaken by organizations to improve employees'...

Read More

Situational Leadership

Situational Leadership refers to a management theory which states that the leadership’s...

Read More

Skill Gap

Skill gap refers to the scenario wherein the skills that the employees’ possess don’t meet the...

Read More

Social Collaboration

An HR practice that enables interaction among the employees belonging to different departments is...

Read More

Social HR

The practice of using social media channels such as Linkedin, Facebook, Twitter, Instagram, etc,...

Read More

Social Networking

Social networking is the practice of building online communities and relationships among...

Read More

Social Recruitment

Social recruitment is the practice concerned with sourcing candidates for job vacancies through...

Read More

Software as a service (SaaS)

A way of delivering applications as services to the clients through a third-party provider over...

Read More

Staffing

Staffing is the process of screening, reviewing, identifying the right candidates, and developing...

Read More

Strategic HRM

Strategic HRM is a proactive management process of the employees. A good Strategic HRM demands...

Read More

Strategic Planning

Strategic HR planning is a strategy businesses implement to redefine HR values, identify the...

Read More

Succession planning

The process of identifying high potential employees capable of taking up top management positions...

Read More

Summary Dismissal

A scenario wherein an employee is immediately terminated from work due to behavioral misconduct...

Read More

Suspension

Suspension is a scenario wherein an employee, although employed in an organization, is asked not...

Read More

System Changeover

System changeover refers to enabling a smooth shift from one way to another way of doing things...

Read More

Systemic discrimination

Systematic discrimination is a kind of discrimination that often occurs in the organization on...

Read More

T

Talent Acquisition

Talent acquisition refers to a systematic process of identifying and hiring skilled workers to...

Read More

Talent Management

A strategic process of identifying vacant positions, attracting, hiring, retaining the employees,...

Read More

Talent Management Software

A software deployed by companies to automate all the employee-related processes right from their...

Read More

Tangible Rewards

A kind of materialistic reward offered to the employees in the form of cash, or any other form...

Read More

Tax

An involuntary fee paid by the companies and individuals to the government for its activities is...

Read More

Taxable Income

The income amount upon which tax amount is calculated is referred to as taxable income. Generally...

Read More

Team Building

Team building refers to a wide range of activities specially designed to improve the team’s...

Read More

Total Quality Management

A process involved in ensuring continuous improvements in the quality of the product or service...

Read More

Total Remuneration

A complete package that an employer sets in place for an employee in return for his/her...

Read More

Training And Development

A structured program organized by the company for the employees’ educational activities and...

Read More

Training Needs Analysis

The process of identifying the employees’ current need for training to enhance job effectiveness...

Read More

Transformational Leadership

A leadership style that inspires, encourages and motivates subordinates or followers is referred ...

Read More

Turnover

The total income generated by a company from its core business activities in the specified period...

Read More

U

Unconscious Bias

A kind of bias expressed unintentionally, based on common attitudes and stereotypes concerning...

Read More

V

Variable Pay

Variable pay is offered to the employees based on the performance and accomplishment of specified...

Read More

Virtual HR

The practice of providing a range of options for the employees to connect with the HR systems...

Read More

W

Wage Drift

A situation wherein there is a difference between the wages negotiated by the company and what is...

Read More

Wellness Programs

An initiative was taken by the employers to ensure the maintenance of employees’ physical and...

Read More

Work-life Balance

The practice of creating a fine balance between employees’ personal and professional life is...

Read More

Workforce Management

A combined set of processes that companies use to optimize the employees’ productivity at the...

Read More

Workforce Planning

A continuous process of analyzing, identifying, and organizing employees according to the...

Read More

Workplace Bullying

The negative behavior of an employee or a group of employees intending to hurt or abuse another...

Read More

Wrongful Termination

A scenario wherein an employee is fired or let go for no/illegal reason, violating the company’s...

Read More

#

360-degree Feedback

A 360-degree survey is a process that solicits feedback on employee performance from several...

Read More