Key Terms
Human resource management (HRM)
The management of people within organizations, focusing on the touchpoints of the employee life cycle.
Human capital
Skills, knowledge, and experience; their value to an organization. Merit matrix: table linking annual pay increases to p
Employee life cycle
All stages of engagement from attraction through separation. Employer-employee relationship: legal link between employer
HR compliance
Ensuring the organization adheres to laws and regulations governing the employer-employee relationship.
Noncompliance risk
Financial penalties, legal liability, and reputational damage.
Performance management
The process by which an organization ensures its overall goals are being met by evaluating the performance of individual
Deloitte survey
58% of executives said their current performance management approach drives neither employee engagement nor high perform
What organizations want instead
Nimble, real-time, individualized, forward-focused processes.
CEB Global finding
9,000+ managers and employees said having NO performance evaluations is worse than having them. Employees accept undesir
Rewards system
The framework HR creates to ensure employee performance is reciprocated with rewards (monetary or other) that drive cont
Pay-for-performance
The process of tying individual performance levels directly to rewards levels.
Update compensation processes
Design merit matrix, short-term and long- term bonus structures. 5.
Merit matrix
A calculation table that ties annual pay increases to performance levels.
Drive to acquire
We want scarce goods; this drive is relative and insatiable.
Drive to bond
We extend connections beyond individuals to organizations and communities.