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Job Evaluation: Job evaluation means systematically determining relative worth of jobs to

create job structure.

Point Method: Raters assign numerical values to specific job components, and the sum of

these values provides a quantitative assessment of a job’s relative worth.

Classification Method: A job evaluation method by which a number of classes or grades are defined

to describe a group of jobs is known as Classification method.

Ranking Method: Raters examine the description of each job being evaluated and arrange the

jobs in order according to their value to the company.

EAPs: Specific programs designed to help employees with personal problems.

Positive Reinforcement: Applying a valued consequence that increases the likelihood that the person

will repeat the behavior that led to it is termed as positive reinforcement.

Punishment: Punishment means administering an aversive consequence.

Merit Pay: A pay increase given to employees based on their level of performance as

indicated in the appraisal.

Equity: Workers’ perceptions that they are being treated fairly. Compensation must be

fair to all parties concerned and be perceived as fair

External Equity: Exists when a firm’s employees are paid comparably to workers who perform

similar jobs in other firms.

Internal Equity: Exists when employees are paid according to the relative value of their jobs

within an organization.

Compensation: The total of all rewards provided employees in return for their services.

Job Pricing: Job pricing means placing a dollar value on the worth of a job.

Flextime: The practice of permitting employees to choose, with certain limitations, their

own working hours.

Capitation: Typically, the reimbursement method used by primary care physicians is an

approach to health care where providers negotiate a rate for health care for a

covered life over a period of time.

Disability protection: Workers’ compensation protects employees from job-related accidents and

illnesses. Some firms, however, provide additional protection that is more


(ESOP): A defined contribution plan in which a firm contributes stock shares to a


Gain sharing: Plans that are designed to bind employees to the firm’s performance by

providing an incentive payment based on improved company performance

Scanlon plan: Provides a financial reward to employees for savings in labor costs that result

from their suggestions.

Telecommuting: Telecommuting is a work arrangement whereby employees are able to remain

at home, or otherwise away from the office, and perform their work over

telephone lines tied to a computer

Autonomy: The extent of individual freedom and discretion employees have in

performing their jobs.

Pay for Performance Pay for performance refers to any compensation method that ties pay to the

quantity or quality of work the person produces

Empowerment Empowerment means giving employees the authority, tools, and information

they need to do their jobs with greater autonomy

Extinction withdrawing or failing or failing to provide a reinforcing consequence.

Punishment Administering an aversive consequence.

Positive Reinforcement applying a valued consequence that increases the likelihood that the person

will repeat the behavior that led to it.

Motivation Motivation is the inner drive that directs a person’s behavior toward goals.


Safety Involves protecting employees from injuries due to work-related accidents.

Health Refers to the employees’ freedom from physical or emotional illness.

Safety Involves protecting employees from injuries due to work-related accidents.

Health Refers to the employees’ freedom from physical or emotional illness.

Stress Stress is the body’s nonspecific reaction to any demand made on it.

Burnout The total depletion of physical and mental resources caused by excessive

striving to reach an unrealistic work-related goal.

Hypnosis An altered state of consciousness that is artificially induced and characterized

by increased receptiveness to suggestions.

Constraints Constraints are barriers that keep us from doing what we desire.

Demands desires that are backed by the purchasing power or affordability.

Biofeedback A method of learning to control involuntary bodily processes, such as blood

pressure or heart rate.

Transcendental Meditation A stress-reduction technique in which an individual, comfortably seated,

mentally repeats a secret word or phrase provided by a trained instructor.

Burnout: An incapacitating condition in which individuals lose a sense of the basic

purpose and fulfillment of their work

Communication Exchange of information between people; it occurs when one person

understands the meaning of a message sent by another person, and responds

to it.

Noise All factors that interfere with and distort communication.

Encoding Process by which sender puts a message in a certain format to send to the


Feedback Information about some behavior and its effect.

Decoding Process by which the receiver translates the sender's message into an

understandable form.

Grievance procedure A formal, systematic process that permits employees to complain about

matters affecting them and their work.

Collective bargaining The process through which representatives of management and the union

meet to negotiate a labor agreement

Mediation A process whereby a neutral third party enters a labor dispute when a

bargaining impasse has occurred.

Boycotts An agreement by union members to refuse to use or buy the firm’s products.

Arbitration The process that allows the parties to submit their dispute to an impartial third

party for resolution.

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