Twin Cities Human Resources Association
SHRM Certification Preparation Course
Glossary of Terms: Employee and Labor Relations
and Strategic Business Management Practices Modules
4/5ths or 80% Rule A ‘rule of thumb’ followed by the EEOC in determining Adverse Impact for use in
enforcement proceedings. The Rule or concept implies that discrimination generally is considered to occur if
the selection rate for a protected group (defined by race, sex, or ethnic origin) is less than four-fifths or 80% of
the group’s representation in the relevant labor market or less than 80% of the selection rate for the majority
group. The questioned procedure is considered discriminatory unless it is justified by a business necessity.
Abeyance The condition of being undetermined. To hold in abeyance is to place a pending motion (e.g.
grievance) outside the time limits until some future time when it may be taken up and processed.
Ad hoc A Latin phrase meaning "for this," as in for this special purpose. An ad hoc committee, for instance, is
not a permanent or standing committee, but exists only as long as the committee's special job remains to be
done.
Ad Hoc Arbitrator An arbitrator jointly selected by the parties to serve in a single arbitration. The arbitrator
may hear more than one case in one arbitration setting.
Administrative Law Judge (ALJ) Official who conducts hearings and makes recommendations to the NLRB
or other government agency.
Adverse Impact See Disparate Impact.
Agency Shop Clause Requires employees who refuse to join the union to pay equivalent amounts (service fee)
equal to union dues and fees for the union’s representative services.
Affirmative Action A process in which employers identify problem areas, set goals, and take positive steps to
guarantee equal employment opportunities for people in protected class.
Ally Doctrine Occurs when a struck employer effectively uses the employees of a neutral employer as
strikebreakers.
Alter Ego A Latin phrase meaning another self. An alter ego company may result when the same owner and
manager of one company shuts down operations and reopens with a new name, when it is actually the same
business.
Alter Ego Doctrine Used to determine whether an employer is secondary or neutral in a labor dispute.
Alternative Dispute Resolution (ADR) Term applied to different types of employee complaint or disputeresolution procedures.
American Arbitration Association A privates, non-profit organization founded to foster the study of arbitration, and to perfect the techniques of this voluntary method of dispute settlement, administering arbitration in
accordance with the agreement of the parties. It maintains panels from which arbitrators may be selected and
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provides administrative personnel and procedures for cases being arbitrated under the rules of the AAA. There is
a charge for this service. The American Arbitration Association's main address is 140 West 51st Street, New
York, N.Y. 10020.
Amicus Curiae A Latin phrase meaning a friend of the court. A person who has no right to appear in a suit but
is allowed to introduce argument or evidence, usually in the form of a brief, to protect his interests.
Animus, Anti-union Animus is a Latin term meaning mind, attitude, intention or disposition. Anti-union
animus is the official term for anti-union sentiments that may affect various management actions and result in
union organizers, members or representatives being harassed.
Arbitrary A phrase describing an action or decision, which is made without cause or without consideration of
an objective standard, and is fundamentally random in nature
Arbitration, Grievance A means by which disputes arising from different interpretations of a labor contract are
submit to an impartial third party to make a decision, whose decision is generally final and binding on both
parties.
Assessment Center Process by which individuals are evaluated as they participate in a series of situations,
instruments, and exercises that resemble what they might be called upon to handle on the job designed to
diagnose a person’s development needs.
At-will SEE Employment-at-Will (EAW).
Authorization Card Card signed by an employee to designate a union as his, or her collective bargaining agent
for the purpose of negotiating with the employer over wages, hours, and working conditions. Requires 30%
participation to effect a representation of interest.
Availability Analysis An analysis that identifies the number of protected-class members available to work in
the appropriate labor market in given jobs.
Avoidance See Negative Reinforcement.
Balance-Sheet Approach An approach to international compensation that provides international employees
with a compensation package that equalizes cost differences or purchasing power between the international
assignment and the same assignment in the home country.
Balanced Scorecard A management tool designed for organizational development that provides a succinct
picture of the organization in four quadrants: financial goals, customer perspective, internal processes as well as
learning and innovation. All metrics should link back to key success factors and represent a balance among all
stakeholders.
Bargaining Unit All employees eligible to select a single union to represent and bargain collectively for them.
Employees are to be represented if the union wins a representation election and who may vote in the election is
initially proposed by the union starting the campaign. If the employer disagrees, the Board (NLRB, NMB,
FLRA or other State Labor Board as appropriate) may have to investigate and conduct a hearing to determine
the coverage by job classifications of the unit in question. In the private sector, the NLRB usually determines
the bargaining unit when the employees file for an election.
Behavior Modification Technique that operates on the principle that behavior that is rewarded, or positively
reinforced, will be exhibited more frequently in the future, whereas behavior that is penalized or unrewarded
will decrease in frequency.
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Behavior Observation Scale (BOS) A behavioral approach to performance appraisal that measures the levels
of performance and also measures the frequency of observed behavior.
Behaviorally Anchored Rating Scale (BARS) A behavioral approach to performance appraisal that consists of
a series of vertical scales, one for each important dimension of job performance - hence measuring levels of
performance.
Benchmark Job Job found in many organizations and performed by several individuals who have similar duties
that are relatively stable and that require similar KSAs (Knowledge, Skills, and Abilities).
Benchmarking An organizational change and/or informational collection process directed toward continuous
improvement. It is a search for best practices among recognized leaders that lead to superior performance.
Binding Arbitration Occurs when a dispute is submitted to an arbitrator, and the decision is mandatory and
must be accepted by both parties.
Blacklist A list of names or persons or firms to be discriminated against, either in employment or patronage.
Bona fide A Latin phrase meaning "good faith." Normally it is used to mean real, actual or genuine; not
feigned.
Bona Fide Occupational Qualification (BFOQ) A suitable defense or characteristic providing a legitimate
reason against a discrimination charge where age, religion, sex, or national origin is an actual qualification for
performing the job or bases of consideration.
Boycott The refusal to deal with, buy, supply or handle the products of a business as a means of exerting
pressure in a labor dispute. See also Secondary Boycott.
Bumping A contractual right whereby employees scheduled for layoff are permitted to displace less senior
employees in other jobs for which they are qualified.
Broadbanding The replacement of a salary schedule or pay classification system that has numerous salary
grades or levels with one that has only a few "bands" that each carry wider pay-range spreads.
CBA Collective Bargaining Agreement; also known as "Labor Agreement" or "Union Contract".
Capricious A phrase describing an action or decision which is made without cause or without consideration of
an objective standard, and is totally subject to the whim or pleasure of the person or party in power.
Captive Audience Meetings Meetings held by employers with their employees on work time, during a union
organizing drive. Employees are required to attend these meetings, at which the employer explains why they
should vote against the union. They may or may not be allowed to speak.
Card Check Agreement An agreement by an employer to recognize a union provided a majority of the
employees have signed cards authorizing the union to represent them.
Career The sequence of work-related positions a person occupies throughout life.
Career Plateau Situation in which for either organizational or personal reasons the probability of moving up the
career ladder is low.
Central Tendency Error Performance-rating error of rating all employees in a narrow band in the middle of
the rating scale.
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Centralization The degree to which the authority to make decisions is restricted to higher levels of
management.
Checklist Refers to an appraisal method in which an appraiser is given a list of statements or words and checks
the items, which describe the characteristics and performance of an employee.
Checkoff An arrangement under which an employer deducts from the pay of employees the amount of union
dues they owe and turns over the proceeds directly to the treasurer of the union.
Class Action A lawsuit in which the plaintiffs proceed not only on their own behalf, but also on behalf of all
others similarly situated or affected. Class action status can only be accorded by a court after certain
requirements have been met.
Closed Shop Requires individuals to join a union before they can be hired. The closed shop provision - requiring
union membership at hiring is a violation of the Labor-Management Relations Act – Taft-Hartley (1947).
Coalition Bargaining Occurs when more than one employer negotiates with the union.
Coercion Economic or other pressure exerted by an employer to prevent the free exercise by employees of their
right to self-organization and collective bargaining; also, intimidation by a union or fellow workers to compel
affiliation with the union.
Collective Bargaining The process whereby representatives of management and workers negotiate over wages,
hours, and other terms and conditions of employment.
Color of Law The appearance of semblance, without the substance, of legal right. Misuse of power, possessed
by virtue of state law and made possible only because wrongdoer is clothed with authority of state, is action
taken under "color of state law."
Common Law The body of laws and legal principles derived from English legal history that was accepted and,
therefore, served as the framework for early American law. Different from any specific law enacted by the
government, common law justice derives its authority from the usages and customs of immemorial antiquity.
Compa-Ratio Pay level divided by the mid-point of the pay range.
Common Situs Picketing Occurs when lawful picketing of a primary employer affects a secondary employer
who occupies common premises.
Comparable Worth The concept that male and female jobs that are dissimilar, but equal in terms of value or
worth to the employer, should be paid the same. NOT the same concept as Equal Pay!
Compensatory Time Off Time off given in lieu of payment for extra time worked.
Compressed Workweek Workweek in which a full week’s work is accomplished in fewer than five days.
Compulsory Arbitration Occurs when the law requires the parties’ situation to be submitted to arbitration.
Concerted Activity Legally protected activity taken by an employee or employees (generally on behalf of
fellow-workers) in order to improve their working conditions or benefits (wages, hours, or working conditions,)
with or in the absence of union recognition by their employer. Bargaining law considers this type of activity
protected from retaliation or reprisal.
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Consent Agreement In an organizing campaign, this is an agreement (NLRB Form 651) between the employer
and the union that they will be bound by the decision of the NLRB's Regional Director and waive the right to
appeal to the NLRB in Washington. See also Stipulation for Certification.
Consent Decree An agreement worked out under the guidance and with the help of the NLRB which, therefore,
has the effect of a court order on both labor and management parties.
Concurrent Validity The extent to which test scores (or other predictor information) match criterion data
(performance ratings) obtained at about the same time from current employees.
Conflict of Interest An opposition between the private interests and the public or work-related obligations of a
person in an official position.
Consent Election NLRB election option where the petition to hold a representation election is not contested by
either the employer or the union. An agreement to waive the pre-election hearing.
Conspiracy An agreement between two or more people to commit a crime.
Constructive Discharge In some cases, a resignation provoked by management harassment so unbearable that
the resignation may be construed by the court or an arbitrator as a form of discharge, restoring the employee's
right to grieve or hold the employer liable for violating the employee's due process rights.
Content Validity The extent to which a selection instrument, such as a test, adequately samples the knowledge
and skills needed to perform a particular job.
Construct Validity The extent to which a selection tool measures a theoretical construct or trait.
Consumer Picketing Picketing used by the union to inform customers; it consists of activities such as
distributing handbills, carrying placards, and urging customers not to purchase products from the business.
Contract-bar Rules Rules applied by the labor board which prevent or bar a union representation election for
the period of time during which an existing contract between a union and the employer is in effect, or for one
year after a valid election has taken place.
Contrast Error Occurs when an employee’s rating is based on how the employee compares to another
employee instead of on objective performance standards.
Coordinated Bargaining Occurs when an employer bargains with several unions simultaneously, but
separately.
Criterion-Related Validity The extent to which a selection tool predicts, or significantly correlates with,
important elements of work behavior.
Cross-Training Training of employees in jobs in areas closely related to their own.
Culture Shared attitudes and perceptions in an organization – can be written or unwritten.
Cumulative Trauma Disorders (CTDs) Muscle and skeletal injuries that occur when workers repetitive use
the same muscles to perform tasks.
Damages Cash, which may be recovered in the courts by any person who has suffered a loss or injury as a
result of another's unlawful or negligent act or omission. See also Liquidated damages, Punitive damages, and
Tort.
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De Minimis Short for the Latin phrase, de minimis non curat lex, which means the law does not concern itself
about trifles. This phrase may be used to describe a violation of law, which is so small that it is not worth
litigating.
De Novo Latin for anew or afresh. An appeal hearing is de novo when all evidence and proof considered at the
prior hearing must be reintroduced and reconsidered.
Deauthorization Procedure whereby the employees can rescind their bargaining representative’s authority to
enter into and enforce a union security agreement with their employer.
Decertification The withdrawal by the Board of a union's designation as exclusive representative usually as a
result of the loss of an election called for by employee petition.
Decentralization The extent to which decision-making authority is dispersed downward through the
organization.
Defamation Occurs when slanderous (oral) or libelous (written) statements harm the reputation or credibility of
another person.
Deficiency Error Occurs when a performance-measuring device doesn’t adequately measure all the important
aspects of a job.
Defined-Benefit Plan A pension plan in which the amount an employee is to receive upon retirement is
specifically set forth, generally based on age and service.
Defined-Contribution Plan A pension plan that establishes the basis on which an employer will contribute to
the pension fund, generally an annual payment to an employee’s pension account.
Delphi Technique Process by which a group of experts provides independent forecast assumptions via
questionnaires – however, the group never meets; the forecasts are revised until a composite emerges that
incorporates many of the participants assumptions.
Directed Election Occurs if two parties do not agree on pre-election issues, and an NLRB Regional Director
schedules a hearing to resolve the dispute.
Disabled Individual Any person who (1) has a physical or mental impairment that substantially limits one or
more of such person’s major life activities, (2) has a record of such impairment, or (3) is regarded as having
such an impairment.
Disparate (or Adverse) Impact A concept that refers to the rejection of a significantly higher percentage
(discriminatory impact) of a protected class for employment, placement, or promotion when compared with the
successful, non-protected class. Occurs when a decision, practice, or policy has a disproportionately negative
effect on a protected group. Adverse Impact may be unintentional.
Disparate (or Adverse) Treatment Situation in which protected-class members receive unequal (deliberate
illegal discrimination) treatment or are evaluated by different standards.
Distributive Bargaining Takes place when the parties are in conflict over an issue, and the outcome represents
a gain for one party and a loss for the other; it usually occurs over items such as wages and premium pay. Also
known as Win – Lose Bargaining.
Double Breasting Occurs when commonly owned companies (most often a construction contractor) perform
similar work with separate but almost identical operations – one union and one not.
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Due Process The constitutional guarantee that no person shall be deprived of his life, liberty or property
without due process of law, meaning ordinarily the right to a fair and objective hearing, or trial by jury as
provided by whatever rules or laws are governing.
Dues Checkoff An arrangement under which an employer deducts from the pay of employees the amount of
union dues they owe and turns over the proceeds directly to the treasurer of the union.
EEO-1 Report An employer information report that must be filed annually by employers of 100 or more
employees (except state and local government employers) and government contractors and subcontractors to
determine an employer’s workforce composition.
Employee Assistance Programs (EAPs) Services provided by employers to help workers cope with a wide
variety of problems that interfere with the way they perform their jobs.
Employee Engagement A measurable degree of an employee's positive or negative emotional attachment to
their job, colleagues and organization which influences their willingness to learn and perform at work".
Employee Engagement is distinctively different from employee satisfaction, motivation and organizational
culture. Increasing Employee Engagement correlates directly with a positive impact on key business metrics.
Employee Involvement (EI) A planned and orderly attempt to find the shared interests of the employee and the
organization for their mutual benefit.
Employee Stock Ownership Plan (ESOP) A plan whereby employees gain stock ownership in the
organization for which they work.
Employment-at-Will (EAW) Principle A common-law doctrine, this phrase describes the relationship between
employer and employee that exists without a written contract or other agreement guaranteeing job security.
Employers have the right to hire, fire, demote, or promote whomever they choose, without reason or cause –
unless there is a law or contract to the contrary. An at-will employee may be terminated at the will of the
employer without reason or cause – with limited exceptions. Additionally, the employer is not required to
provide a reason for the separation and the employee has the right to quit when they choose. See also Wrongful
Termination, Arbitrary and capricious, and just cause.
Environmental Scanning Process that systematically surveys, identifies, and interprets relevant events and
conditions that may affect the organization.
Equal Pay The Equal Pay Act of 1963 prohibits employers from paying workers of one sex less than the rate
received by those of the opposite sex for jobs substantially similar or identical in skill, effort, and
responsibility and performed under similar work conditions. NOT the same concept as Comparable Worth!
Equity Theory A motivation theory that is based on the belief that people want to be treated fairly.
Ergonomics An interdisciplinary approach to designing equipment and systems in the work environment to
address the physical demands experienced by employees.
Essay Performance Appraisal Method A trait approach to performance appraisal that requires the rater to
compose a statement describing employee behavior.
Essential Job Functions The fundamental job duties of the employment position that an individual with a
disability holds or desires; they do not include marginal functions of the position.
Ethnocentric Staffing An international staffing approach by which key jobs are both domestic and foreign
operations are held by headquarters’ management personnel, and subsidiaries are managed by expatriates from
the home company.
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Excelsior List A list filed by the employer within seven days after a union election has been directed by the
NLRB, stating the names and addresses of all eligible bargaining unit employees.
Executive Order An order issued by the U.S. President, which has the force and effect of law.
Exempt Employees Employees classified as Executive, Administrative, Professional, or Outside Sales, to whom
employers are not required to pay overtime under the Fair Labor Standards Act.
Exit Interview An interview in which those leaving the organization are asked to identify the reasons for their
departure and observations on their employment experience.
Expatriate or Home-Country Nationals (HCN) An employee working in a unit or plant who is not a citizen of
the country in which the unit or plant is located, but is a citizen of the country in which the organization is
headquartered.
Expectancy Theory A motivational theory that is based on people’s beliefs that their actions will lead to certain
outcomes or rewards.
Fact-Finding A method of resolving an impasse through investigation by a neutral third party who issues
recommendations for settlement.
Featherbedding Controversial practices which tend to limit productivity and create an increased demand for
workers, such as demanding payment for work no longer performed by workers because of automation or
robotification. Occurs when the union requires the employment of more workers than is necessary.
Flexible Benefits Plan Benefits plan that allows employees to select the benefits they prefer from groups of
benefits established by the employer.
Flexible Spending Account Account that allows employees to contribute pretax dollars to buy additional
benefits.
Flextime A scheduling arrangement in which employees work a set number of hours per day but vary starting
and ending times.
Federal Mediation and Conciliation Service (FMCS) A service established as an independent agency of the
Federal government under Title 11 of the Labor Management Relations Act 1947, to mediate and conciliate
labor disputes in any industry affecting commerce other than those occurring in the railroad and air transport
industries. The Service also provides panels from which arbitrators may be selected. Many union contracts
provide for arbitration under the rules of the FMCS. There is no charge for this service.
Fiduciary Obligation The obligation or trust imposed by law on officials of an organization making them
liable for the proper use and disbursement of the organization's money, funds and property. As applied to a
pension fund trustee or a union officer, the duty to act exclusively for the benefit of the plan participants, or
union members, respectively.
Formal Consent Agreement Occur when a preliminary investigation uncovers major ULPs. They include a
written statement of facts underlying the charge, a waiver of the right to a public hearing, and consent to the
issuance of a formal NLRB order.
Forced Distribution Performance appraisal method in which ratings of employees’ performance are distributed
along a bell-shaped curve.
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Forced-choice Method A trait approach to performance appraisal that requires the rater to choose from
statements designed to distinguish between successful and unsuccessful performance. An example would be in
which the appraiser is required to check two of four statements: one that the employee is “most like” and one
that the employee is “least like.”
Free Riders A term used by unions to designate non-members within the bargaining unit who obtain, without
cost, the benefits of a contract gained through the efforts of the dues-paying members.
Front Pay A remedy sometimes awarded by the courts to victims of discrimination where it is impractical to
order reinstatement. A front pay award leaves the incumbent in place and orders the employer to pay the
discriminatee an amount equivalent to what it is reasonable to estimate he or she would otherwise have earned in
future employment.
Gainsharing Plans Programs under which both employees and the organization share the financial gains
according to a predetermined formula that reflects improved productivity and profitability, generally greaterthan-expected gains in profits and/or productions.
Garnishment A procedure, usually resulting from court action, whereby a portion of an employee's wages is
deducted and paid directly to a creditor.
Geocentric Staffing An international staffing method that ignores nationality in favor of ability and seeks the
best people for key jobs.
Golden Parachute A severance benefit that provides protection and security to executives in the event that they
lose their jobs or their firms are acquired by other firms and they are negatively affected.
Good Faith Bargaining A legal requirement arising out of Section 8(d) of the National Labor Relations Act on
both the Union and the Employer (where the Union is certified as the exclusive representative). Enforced by the
National Labor Relations Board the parties are required: "To bargain collectively .... to meet at reasonable times
and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the
negotiation of an agreement or any question arising there under, and the execution of a written contract
incorporating any agreement reached if requested by either party, but such obligation does not compel either
party to agree to a proposal or require the making of a concession..."
Grandfather An exception provided in a contract article that either exempts or continues a prior benefit to
those covered employees who were employed prior to the negotiation of that article.
Graphic Rating-Scale Method A trait approach to performance appraisal whereby each employee is rated
according to a scale of characteristics on a continuum.
Green-Circled Rate A rate paid to an individual that is below the range set for a particular job.
Grievance A specific, formal notice of employee dissatisfaction expressed through an identified procedure. A
claim based upon the occurrence of a happening or a condition alleged to affect a member of the Bargaining
Unit or which creates a question as to the interpretation or application of any provision in the Collective
Bargaining Agreement. The method for dealing with grievances is through a grievance procedure negotiated in
the union contract. If a grievance cannot be settled at the supervisory level, it can be appealed to higher levels
of management, and finally to arbitration if so provided.
HR Audit A formal research effort that evaluates the current state of HR management or activities in a
particular function or organization.
Halo Rating Error Rating a person high or low on all items because of one positive characteristic.
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Hay Profile Method Job evaluation technique using three factors – knowledge, problem solving (mental
activity), and accountability – evaluate executive and managerial positions.
Health Maintenance Organizations (HMOs) Organizations of physicians and health care professionals that
provide a wide range of serves to subscribers and dependents on a prepaid basis.
Horn Rating Error Rating a person low on all items because of one negative characteristic.
Home-Country Nationals (HCN) See Expatriate.
Host-Country National Native of the host country.
Hostile Environment A form of harassment that occurs when sexual conduct unreasonably interferes with an
individual’s performance and creates an offensive work environment.
Hot Cargo Goods or products that come from a plant or production facility where there is a labor dispute in
progress.
Hot Cargo Clauses Past agreements between an employer and a union that permitted union members to refuse
to handle goods made by nonunion labor or a struck plant.
Hostile Environment Continuous, low level discriminatory remarks or behaviors that cumulatively 'poison' the
workplace for the aggrieved victim enough to alter the terms, conditions or privileges of the workplace, and are
commonly considered by the courts and the EEOC as equivalently unlawful to more overt forms of
discrimination.
Human Resource Information System (HRIS) An integrated system designed to track and provide
information used in HR decision-making.
Impasse A deadlock in labor-management negotiations.
Improshare Gainsharing program under which bonuses are based upon the overall productivity of the work
team.
Independent Contractors Workers who perform specific services on a contract basis.
Informational Picketing Picketing aimed at informing the general public that the pickets' employer is unfair in
treatment of workers or refuses to employ members of a particular or any union, etc. Also, sometimes called
consumer picketing.
Injunction An order of a court or agency requiring a person to do or not do a certain act. Failure to abide by the
terms of a court injunction may result in the court arresting and jailing the person for contempt of court.
Integrative Bargaining Takes place when there is more than one issue to be resolved.
Interest Arbitration The arbitrator, instead of interpreting and applying the terms of an agreement to decide a
grievance, is authorized to determine what provisions the parties are to have in their collective bargaining
agreement.
Job A group of related activities and duties.
Job Analysis A systematic process of obtaining information about jobs by determining what the duties, tasks, or
activities of jobs are and the context in which jobs are performed.
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Job Classification System System of job evaluation by which jobs are classified and grouped according to a
series of predetermined wage grades.
Job Description Statement of the tasks, duties, and responsibilities of a job to be performed.
Job Design Outgrowth of job analysis that improves jobs through technological and human considerations in
order to enhance organization efficiency and employee job satisfaction.
Job Enlargement Broadening the scope of a job by expanding the number of different tasks to be performed.
Job Enrichment Increasing depth of a job by adding more meaningful responsibilities, tasks and duties
(planning, organizing, controlling, and evaluating) to make the work more rewarding or satisfying.
Job Evaluation Systematic process of determining the relative worth of jobs in order to establish which jobs
should be paid more than others within the organization.
Job Posting and Bidding Posting vacancy notices and maintaining lists of employees looking for positions.
Job Ranking System Simplest and oldest system of job evaluation by which jobs are arrayed on the basis of
their relative worth.
Job Specialization or Job Simplification Involves standardizing work procedures and employing people in
clearly defined and specialized tasks.
Job Specification Statement of the needed knowledge, skills, and abilities of the person who is to perform the
job.
Judicial Review A case brought before a court to determine if the decisions made by a labor board or other
government agency are legal.
Jurisdiction 1. The boundaries or kuleana of a union's representation as determined usually by the type of work
an employee performs. In construction organizing, for example, the question arises whether the work being done
by a laborer more properly belongs to a carpenter or an electrician. 2. The boundaries or authority of a given
court of law, which govern, for instance, where a suit or a claim should properly be filed.
Just Cause A "due process" provision commonly negotiated into a collective bargaining agreement that
requires the employer to demonstrate proof of an employee's guilt before taking disciplinary action like
suspension, or termination. Without such a protection, common law generally allows employers to terminate
employees "at-will" (without cause). See also Arbitrary and Capricious, and At-will.
Jurisdictional Strike see Strike, Jurisdictional
Knowledge, Skills, and Abilities (KSAs) Include education, experience, work skill requirements, personal
requirements, mental and physical requirements, and working conditions and hazards.
Labor Relations Process Logical sequence of four events: 1) workers desire collective representation, 2) union
begins it organizing campaign, 3) collective negotiations lead to a contract, and 4) the contract is administered.
Leafleting A union-organizing strategy in which pamphlets stating the union’s cause are passed out to
employees.
Leniency or Strictness Error Performance-rating error in which the appraiser tends to give employees either
unusually high or unusually low ratings.
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Lie Detector Tests See Polygraph Tests.
Liquidated Damages A court award available under some laws (Equal Pay Act) where the employer's
violation was either willful or in reckless disregard of the law or the employee's rights there under. Such award
generally provides for attorney fees and an amount equal to and in addition to the lost wages and benefits.
Lockout Shutdown of a worksite by the employer to discourage union membership or activity or to force
employees to meet the demands or economic terms of the employer.
Lump-sum Increase (LSI) A one-time payment of all or part of a yearly pay increase.
Management by Objectives (MBO) Philosophy of management that rates performance on the basis of
employee achievement of goals set by mutual agreement of employee and manager. Specifies the performance
goal that an individual hopes to attain within an appropriate length of time.
Management forecasts The opinions (judgments) of supervisors, department managers, or others
knowledgeable about the organization’s future employment needs.
Management Rights See Reserved Rights Doctrine.
Mandatory Issues Those issues that are identified specifically by labor laws or court decisions as being subject
to bargaining. These items must be negotiated at the request of either party and include pay, benefits, seniority,
and working conditions.
Material Safety Data Sheets (MSDS) Documents that contain vital information about hazardous substances.
Matrix Structure Organizational structure that reflect both a functional and a divisional reporting orientation;
they usually create a dual rather than a single chain of command.
Mediation The attempt by an impartial third party, called a mediator, to bring the parties in a dispute together
and assist them to voluntarily agree when there is a dispute, or when impasse is eminent; in the private sector,
mediation services are provided by the Federal Mediation and Conciliation Service, which tracks the progress of
negotiations in its jurisdiction. The mediator, however, has no power to force or award a settlement but works
instead to persuade the parties to reach agreement.
Mediator Third party in a labor dispute who meets with one party and then the other in order to suggest
compromise solutions or to recommend concessions from each side that will lead to an agreement.
Mentors Individual who coach, advise, and encourage individuals of lesser rank.
Mission Statement A statement that specifies who the company is, what the company does, and where the
company is headed.
Multinational Corporation (MNC) Firm with independent business units operating in multiple countries.
National Labor Relations Act (NLRA) The federal labor relations law which governs union organizing and
collective bargaining in the private sector.
National Labor Relations Board (NLRB) The National Labor Relations Board administers the provision of
the National Labor Relations Act.
Narrative Appraisal Refers to written, narrative appraisal methods such as essay, critical incidents, and field
review.
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National Emergency Strike A strike that would affect an industry or a major part of it such that the national
health or safety would be impeded.
Negative Reinforcement (or Avoidance) When an individual works to avoid an undesirable reward.
Negligence Failure to provide reasonable care where acts by employee who should not have been hired based on
past history, and such failure results in injury to consumers or other employees.
Neutrality Agreement An agreement by an employer to remain neutral during a union organizing drive.
No-lockout Clause An agreement in which the company agrees not to lock out workers during the duration of
the contract.
No-strike Clause An agreement in which the union agrees not to strike during the duration of the contract.
Non-directive Interview An interview in which the applicant is allowed the maximum amount of freedom in
determining the course of the discussion, while the interviewer carefully refrains from influencing the
applicant’s remarks.
Non-contributory Plan Pension plan in which all the funds for pension benefits are made solely by the
employer.
Non-exempt Employees Employees who must be paid overtime according to the Fair Labor Standards Act.
Nominal Group Technique Uses a variety of individuals to forecast ideas and assumptions; the group meets
face-to-face and a composite is compiled.
On-the-Job Training (OJT) Method by which employees are given hands-on experience with instructions
from their supervisor or other trainer.
Open-Door Policy Policy of settling grievances that identifies various levels of management above the
immediate supervisor for employee contact.
Open Shop A bargaining unit in a company or workplace at which the workers, though represented by a dulyelected union, are NOT required to pay the union dues or service fees for representation which the union is
nevertheless legally required to provide.
Organizational Culture See Culture.
Organizational Picketing Picketing not directed against an employer but aimed at persuading coworkers to
join a particular union.
Orientation Formal process of introducing and familiarizing new employees with the organization, their jobs,
and their work units.
Outplacement Services provided by organizations to help terminated employees find a new job – and to reduce
the stress of job loss.
Outsourcing Contracting outside the organization to have work done that formerly was done by internal
employees.
Paired Comparison An appraisal method in which each employee is paired with every other employee and
compared, one at a time, using the same scale for performance.
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Past Practice A particular working condition, benefit or custom that has been in existence and deeply ingrained
over a period of time such that it is regarded as a part of the whole agreement and, therefore, enforceable by
arbitrators.
Pattern Bargaining Bargaining in which unions negotiate provisions covering wages and other benefits that are
similar to those provided in other agreements existing within the industry or region.
Pay compression Situation in which pay differences among individuals with different levels of experience and
performance in the organization become small.
Pay-for-Performance Standard Standard by which managers tie compensation to employee effort and
performance.
Pay Equity The concept that the pay for jobs requiring comparable knowledge, skills, and abilities should be
similar even if actual duties and market rates differ significantly.
Peer Appraisal Performance appraisal doe by one’s associate employees, generally on forms that are compiled
into a single profile for use in the performance interview conducted by the employee’s manager.
Pension Plans Retirement benefits established and funded by employers and employees.
Performance Appraisal (PA) The process of determining how well employees do their jobs compared with a
set of standards and communicating that information to those employees.
Performance Criteria Standards commonly used for testing or measuring performances.
Permanent Arbitrator An arbitrator who is selected to serve under the terms of a collective bargaining
agreement for the life of the contract or a specified period of time. The specific functions and responsibilities of
the office of the permanent arbitrator are determined by the contract.
Permissive Subjects For collective bargaining are voluntary subjects for negotiation. They include retirement
benefits and managerial control.
Perquisites Special or selected benefits provided to organizational executives; often referred to as perks.
Picketing An exercise of the right to free speech and usually involves the positioning of employees at the place
of work affected by a labor-management dispute.
Piece-Rate System A productivity-based compensation system in which an employee is paid for each unit of
production.
Plaintiff The one who sues. The moving party in a civil law suit who is bringing the complaint against a
defendant.
Point Factor System Quantitative job evaluation procedure that determines the relative value of a job by the
total points assigned to it.
Policy Broad statement that reflect an organization’s philosophy, objectives, or standards concerning a
particular set of management or employee activities.
Polycentric Staffing An international staffing method in which multinational corporations treat each subsidiary
as a distinct national entity with some decision-making autonomy and appoint host country nationals as
managers.
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Polygraph Tests (or “Lie Detector” Tests) Measure a person’s respiration, blood pressure, and perspiration
while they are asked a series of questions to determine if the responses are true.
Positional Negotiation A type of contract negotiation in which the following outcomes occur: 1) people lock
themselves into positions and find it difficult to move away, 2) parties lose sight of the underlying problems to
be resolved, and 3) emphasis is placed on winning the position.
Precedent An adjudged case or decision of a court of justice, considered as furnishing an example or authority
for an identical or similar case arising later. A lower court is expected to follow the precedents set in the higher
courts.
Preemption The right of one law over another in circumstances where the rights or remedies of the one law
conflict with the other. Generally, federal laws preempt state laws.
Pre-Experiment A type of scientific research that utilizes one-shot case designs and one-group pretests /
posttests to collect data.
Predictive Validity Validity measured when test results of applicants are compared with subsequent
performance, for example, applicants’ test scores match criterion data obtained from those applicants/employees
after they have been on the job for some indefinite period.
Preferred Provider Organization (PPO) A group of physicians who establish an organization that guarantees
lower health care costs to the employer.
Preponderance A greater weight of evidence, or evidence, which is more believable and convincing in
comparison to that, which has been presented by the other party in a suit or grievance.
Presumption An advantage of proof legally accorded to one side in a suit or trial that in the absence of any
evidence or without convincing evidence to the contrary that party's argument or version of the facts shall be
accepted as true, and the burden of proof rests with the opposite side.
Pretext A legal excuse to do something which otherwise would be illegal. In discrimination cases, for instance,
it may be shown that the apparently innocent motive behind an action may conceal a discriminatory intention.
Prima facie Latin term for ‘on first view’ or ‘on the surface’; utilized in EEOC cases, when a plaintiff presents
evidence of a Prima facie case, the employer must articulate a legitimate, nondiscriminatory business reason for
the decision.
Principled Negotiation A type of contract negotiation based on four premises: 1) separate the people from the
problem, 2) focus on interests, not positions, 3) invent options for mutual gain, and 4) insist on objective criteria.
Procedure Detailed, step-by-step description of the customary methods of handling activities.
Productivity A measure of the quantity and quality of work done, considering the cost of the resources it took
to do the work.
Portability A pension plan feature that allows employees to move their pension benefits from one employer to
another.
Profit Sharing Any procedure by which an employer pays, or makes available to all regular employees, in
addition to base pay, special current or deferred sums based upon the profits of the enterprise.
Progressive Discipline Application of corrective measures by increasing degrees.
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Programmed Instruction A method of presenting new subject matter to students in a graded sequence of
controlled steps.
Protected Class Anti-discrimination laws only regard unequal or unfair treatment as unlawful discrimination
when the victim is a member of a defined group known as a protected class. The first civil rights laws protected
only race and color. As the principle of discrimination evolved over the years more laws were passed and more
groups were added. Federal protected classes now include race, color, national origin, religion, sex (or gender),
age (over 40), and disability.
Punitive Damages A Monetary award made by the court that goes beyond simple reimbursement for losses
suffered (actual or compensatory damages) and, in the manner of a fine, assesses the defendant an amount of
cash designed to punish the defendant for his evil behavior or to make an example of him/her.
Quality Circle A small group of employees who monitor productivity and quality and suggest solutions to
problems.
Quid Pro Quo A Latin phrase meaning “what for what” or “this for that”; generally refers to sexual
harassment issue(s) that occur when an employee is forced to choose between an employer’s sexual demands or
forfeiting an economic benefit. "Quid pro quo sexual harassment, for example, is the most overt form of
harassment in which the harasser makes it clear that failure to submit to the sexual demands will result in loss of
employment or some other right, opportunity or benefit.
Quasi-Experiment A type of scientific research that collects information at two or more points in time in order
to study trends, cycles, and stability of data.
Ranking Listing of all employees from highest to lowest in performance.
Rater Bias Error that occurs when a rater’s values or prejudices distort the rating.
Ratification The internal voting process for the formal approval of the contract negotiated by a union.
Reasonable Accommodation A modification, adjustment, or attempt by employers -- without undue hardship,
to adjust a job, the working conditions or schedules of a qualified individual with a disability to enjoy equal
employment opportunity. Generally for employees with disabilities or religious preferences.
Recency Error Performance-rating error in when a performance appraiser gives more weight to recent
occurrences and discounts the employees’ earlier performance during the appraisal period rather than on
behavior through the appraisal period.
Recognition The employer's acknowledgment of a union as the exclusive bargaining agent for the employees,
given either voluntarily upon evidence of an employee petition, or by legal requirement after an election
conducted by the government.
Recognition Picketing Done to obtain the employer’s recognition of the union as the bargaining representative
of its employees.
Red-Circled Rate An incumbent who is paid above the range set for the job.
Reengineering Fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in cost, quality, service and speed.
Regiocentric Staffing An international staffing method in which organizations utilize a wider pool of managers
spread over regional areas and provide them with a degree of regional autonomy.
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Regression Analysis Allows a person to predict one variable from knowledge about another.
Reinforcement A concept based on the law of effect, which states that people tend to repeat responses that give
them some type of positive reward and avoid actions that are associated with negative consequences.
Reliability The consistency with which a test measures an item. The degree to which interviews, tests, and
other selection procedures yield comparable data over time and alternative measures.
Repatriation The process of bringing expatriates home from an international assignment.
Repetitive Motion Injuries Injuries involving tendons of the fingers, hands, and arms that become inflamed
from repeated stresses and strains.
Replacement Charts Listings of current job-holders and persons who are potential replacements if an opening
occurs.
Reserved Rights Doctrine (or Management Rights) The concept that management’s authority is supreme in
all maters except those it has expressly conceded to the union in the collective agreement – particularly in the
area to manage, direct, and control its business; including to hire, suspend, or discharge employees and establish
policy. Often a contract clause that lists certain management’s rights, prerogatives, or authority.
Retaliatory Discharge Occurs when an employer punishes an employee for engaging in a protected activity,
such as filing a discrimination charge or opposing unlawful employer practices.
Retrenchment Adoption of a smaller scale of operations in an organization, often resulting in layoffs as part of
the effort to reduce the work force.
Reverse Discrimination Act of giving preference to members of protected classes to the extent that unprotected
individuals believe they are suffering discrimination.
Rights Arbitration The appeal of an unresolved grievance to an impartial arbitrator for final and binding
determination. Sometimes called "grievance arbitration." The arbitrator determines the meaning of the
contract/MOU and clarifies and interprets its terms. Arbitration, where it is available, is usually the last step in
the grievance procedure.
Rucker Share of Production Plan A program whereby certain cost savings resulting from an employee's effort
will be shared with all employees. Incentive pay plans focusing on efficiency or cost reduction involve defining
a standard or normal cost and then rewarding employees on a schedule that is achieved at less than this standard
cost.
Rule Reflects management decisions that actions be taken or avoided in a given situation.
Salting Refers to an organizing tactic employed by labor unions. To start the process, a union targets a
nonunionized company and either encourages some of its members or has a ‘paid’ union organizer to seek
employment at the targeted organization Once these “salts” have been hired, they initiate efforts to organize
nonunion workers from within the company.
Scab A union term generally applied to a worker who refuses to join coworkers in a strike. Sometimes applied
to members of a non-striking union who pass through a striking union's picket line.
Scanlon Plan Bonus incentive plan using employee and management committees to gain cost-reduction
improvements.
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Scientific Method A systematic method for diagnosing problems, finding solutions, and evaluating the
effectiveness of activities.
Secondary Boycott An Unfair Labor Practice by which a union attempts to strike a neutral third-party in order
to put pressure on the company – generally involved in a certification or decertification action. See also Boycott
and Hot cargo.
Selection Ratio The number of job applicants compared with the number of persons hired.
Self-Efficacy An aspect of motivation that refers to the judgments people make about their abilities to handling
prospective situations.
Self-directed Work Team An organizational team composed of individuals who are assigned a cluster of tasks,
duties, and responsibilities to be accomplished.
Sexual Harassment Unwelcome advances, requests for sexual favors, and other verbal of physical conduct of a
sexual nature in the working environment that subject the worker to adverse employment conditions or creates a
hostile work environment.
Similar-to-me Error Performance-rating error in which an appraiser inflates the evaluation of an employee
because of a mutual personal connection.
Situational Interview An interview in which an applicant is given a hypothetical incident and asked how he or
she would respond to it.
Skill-Based Pay Pay based on how many skills employees have or how many jobs they can perform.
Slowdowns Partial or intermittent strikes that are not protected and which may result in discipline or discharge
of the workers involved.
Solomon Four-Group Design See True Experiments.
Solicitation Asking; selling. An employer may have a "no solicitation" rule to prohibit employees from union
organizing at work, but the rule may not be valid if the employer allows other forms of solicitation such as fundraising ticket sales, etc.
Statute of Limitations The provisions in any law or laws that limit the time when a plaintiff may bring suit or
the time before which the defendant may be liable for losses or damages.
Specialization (also Vertical Specialization) A hierarchical division of labor that distributes formal authority
and establishes how critical decisions will be made.
Stipulation An agreement between the parties to mutually accept some facts or evidence as true and
undisputed.
Stipulation Election NLRB election option where the parties seek settlement of representation questions such
as the NLRB’s jurisdiction or the appropriate employees to be included in the bargaining unit.
Stipulation for Certification In an organizing campaign, this is an agreement (NLRB Form 652) between the
union and the employer that the NLRB's Regional Director merely investigates challenges or objections and
makes recommendations to the Board in Washington D.C., but the NLRB then makes the final decision. See
also Consent Agreement.
Straight Piecework Incentive plan under which employees receive a certain rate for each unit produced.
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Strategic planning An organization's process of defining its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is
necessary to understand its current position and the possible avenues through which it can pursue a particular
course of action.
Stress Any adjustive demand caused by physical, mental, or emotional factors that requires coping behavior.
Strike Work stoppage in which union members refuse to work in order to put pressure on an employer.
Strike, Jurisdictional Refers to a concerted refusal to work undertaken by a union to assert its members’ right
to particular job assignments and to protest the assignment of disputed work to members of another union or to
unorganized workers.
Structured Interview An interview in which a set of standardized question having an established set of answers
is used for all job applicants.
Subpoena A process document issued out of court requiring a witness to attend. A subpoena duces tecum
further requires the witness to bring relevant books or records.
Substance Abuse The use of illicit substances or the misuse of controlled substances, alcohol, or other drugs.
Substantial Evidence A considerable weight of relevant evidence that a reasonable mind would accept as
adequate to support a conclusion
Succession Planning The process of identifying, developing, and tracking key individuals and talent to meet
organizational needs – generally 24+ months into the future.
Supplemental Unemployment Benefits (SUBS) A plan that enables an employee who is laid off to draw, in
addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund
created for this purpose.
Surveillance An unfair labor practice in which a company focuses its surveillance efforts on union activity.
Sweetheart Contracts Were outlawed by the Taft-Hartley Act and prohibited employers from establishing
company-sponsored labor organizations.
SWOT Analysis A method of systematic group or individual reflection of an organization. SWOT is an
acronym, which stands for Strengths, Weaknesses, Opportunities, and Threats.
Sympathy Strike A strike that expresses one union’s support for another involved in a dispute, even through
the first union has no disagreement with the employer.
Task A distinct identifiable work activity composed of motions.
Task Analysis Process of determining what the content of a training program should be on the basis of a study
of the tasks and duties involved in the job.
Task Force A temporary grouping of personnel and resources for the accomplishment of a specific objective.
Task Significance The extent to which the job has a substantial impact on other people.
Tax Equalization Plan Compensation plan used to protect Expatriates from negative tax consequences.
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Team or Group Incentive Plan Compensation plan where all team members receive an incentive bonus
payment when production or service standards are met or exceeded.
Telecommuting The use of microcomputers, networks, telecommunications equipment and other technology to
do work remotely that is traditionally done in the workplace.
Third-Country Nationals (TCN) An employee who is a citizen of one country, working in a second country,
and employed by an organization headquartered in third country. Natives of a country other than the home
country or the host country.
Threat of Reprisal Any threat that is intended to intimidate or coerce employees to act in a certain way.
Total Quality Management (TQM) A comprehensive set of management processes, principles and practices
whose core ideas include understanding customer needs, doing things right the first time, and striving for
continuous improvement.
Tort A wrongful act that violates a person's private or civil rights and creates a liability under which the victim
of the violation may sue the person or persons responsible in civil court.
Transfer Placement of an individual in another job for which the duties, responsibilities, status, and
remuneration are approximately equal to those of the previous position.
Transactional Leadership A leadership approach that offers the promise of reward or the threat of discipline to
motivate employees.
Transformational Leadership A leadership approach that motivates employees by inspiring them to join in a
mutually satisfying achievement.
Trend Analysis A quantitative approach to forecasting labor demand based on an organizational index such as
sales.
Tripartite Panel A three-member arbitration, which one member represents management, one member
represents the union, and one member is neutral who is selected by the parties to act as chair.
True Experiments are the most common design is the Pretest-Posttest Group Design with random assignment.
This design is used so often that it is frequently referred to by its popular name: the "classic" experimental
design. In a true experimental design, the proper test of a hypothesis is the comparison of the posttests between
the treatment group and the control group. Solomon Four-Group Design is more sophisticated in that four
different comparison groups are used.
Twenty-Four Hour Rule Employers and Unions are prohibited from making election speeches on company
time to massed assemblies of employees within 24 hours before the scheduled time for conducting an election.
Unfair Labor Practices (ULPs) An action that violates provisions of national (NLRA) or state labor relations
acts that deny employees their rights and benefits under labor law. Both unions and employers may be guilty of
Unfair Labor Practices.
Uniform Guidelines on Employee Selection Procedures Procedural document published in the Federal
Register to assist employers in complying with federal regulations against discriminatory actions.
Union A formal association of workers that promotes the interests of its members through collective action.
Union Shop A bargaining unit in a company or workplace in which all the workers whom the union is legally
required to represent must either pay the union dues or a service fee for its representation. Provision of the labor
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agreement that requires employees to join the union as a requirement for their employment, usually 30 to 90
days after being hired.
Unlawful Circumvention Occurs when an employer’s attempts at direct communication with employees begin
at the same time (or before) as contract negotiations.
Validity The extent to which a test actually measures what it says it measures.
Vesting A contractual right or guarantee by which an employee, after a designated period of employment, has
accrued benefits to participate at retirement age, regardless of their employment status at that time – either a
‘Cliff’ or ‘Step’ schedule.
Voluntary Arbitration Occurs when both parties agree to submit their differences to arbitration.
Voter Eligibility Determined by whether or not an employee is on the payroll before the date of the election.
Waiver The intentional (knowing) and voluntary relinquishment of a known right.
Wage-Rate Compression Compression of differentials between job classes, particularly the differential
between hourly workers and their managers.
Weingarten Rule or Rights The right to representation during a Company interrogation(s). In NLRB v. J.
Weingarten, Inc., 420 US 251 (1975), the United States Supreme Court upheld the National Labor Relations
Board's (NLRB's) determination that "Section 7 [of the National Labor Relations Act (NLRA)] creates a
statutory right in an employee to refuse to submit without union representation to an interview which he
reasonably fears may result in his discipline." In July 2000 the NLRB ruled that non-unionized employees, like
their unionized counterparts, also have the right to be represented by a coworker at any investigatory interview
conducted by an employer, if the employee reasonably believes the interview could lead to disciplinary action
against the employee.
In 2004, the NLRB again decided that non-union employees are not entitled to ‘Weingarten Rights’ under the
National Labor Relations Act, reversing what had been the NLRB’s position on the issue since 2000. Given the
NLRB’s history on this issue, the law in this area will likely change again with future changes in the
membership of the NLRB. For now, however, an employer is free to deny the request of a non-union employee
for the presence of a co-worker during an investigatory interview.
Whistle Blowing Occurs when an employee exposes illegal employer conduct to a person or organization that
can take corrective action.
Wildcat Strikes Work stoppages that occur during the life of the collective bargaining agreement without
approval of union leadership, in violation of a no-strike clause, and of short duration.
Without prejudice Used when a case or grievance is being dismissed this phrase means that the right or
privilege of the complainant to sue again on the same cause of action is not thereby lost or waived. The phrase is
used expressly to prevent the dismissal from operating as a bar to a subsequent suit or grievance.
Workers’ Compensation Insurance Federal or state-mandated insurance provided to workers to defray the
loss of income and cost of treatment due to work-related injuries or illness.
Writ A process (document) of a court ordering a public officer or a private person to do a certain act.
Wrongful Termination A civil action or lawsuit brought by a discharged employee against the employer,
alleging that the termination violated or breached a statutory right, express public policy, or an employment
contract.
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Yellow Dog Contracts Unlawful contracts that force employees to agree not to join a union or participate in any
union activity as a condition of employment.
Yield Ratio The percentage of applicants from a recruitment source that make it to the next phase of the
selection process.
Zipper Clause A contract clause in which both parties waive the right to demand bargaining on any matter not
dealt with in the contract, whether or not that matter was contemplated when the contract was negotiated or
signed.
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