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Principles of Management

Key Terms

Principles of ManagementKey Terms

Key Terms

360 assessment
An evaluation tool that collects feedback from manager, peers, direct reports, and customers.
9-box
A matrix tool used to evaluate an organization’s talent pool based on performance and potential factors.
Competencies
A set of defined behaviors that an organization might utilize to define standards for success.
Employee life cycle
The various stages of engagement of an employee—attraction, recruitment, onboarding, development, retention, separation.
Employer-employee relationship
The employment relationship; the legal link between employers and employees that exists when a person performs work or services under specific conditions in return for payment.
Human capital
The skills, knowledge, and experience of an individual or group, and that value to an organization.
Human resource management
The management of people within organizations, focusing on the touchpoints of the employee life cycle.
Human resources compliance
The HR role to ensure adherence to laws and regulations that govern the employment relationship.
Merit matrix
A calculation table that provides a framework for merit increases based on performance levels.
Pay-for-performance model
The process and structure for tying individual performance levels to rewards levels
Performance management
The process by which an organization ensures that its overall goals are being met by evaluating the performance of individuals within that organization.
Society for Human Resource Management
The world’s largest HR professional society, with more than 285,000 members in more than 165 countries. It is a leading provider of resources serving the needs of HR professionals.
Succession planning
The process of identifying and developing new leaders and high-potential employees to replace current employees at a future time.
Talent acquisition
The process of finding and acquiring skilled candidates for employment within a company; it generally refers to a long-term view of building talent pipelines, rather than short-term recruitment.
Talent development
Integrated HR processes that are created to attract, develop, motivate, and retain employees.
Talent review calibration process
The meeting in which an organization’s 9-box matrix is reviewed and discussed, with input and sharing from organizational leadership.
Total rewards strategy
As coined by World at Work, includes compensation, benefits, work-life effectiveness, recognition, performance management, and talent development.
Training, stretch assignments, individual assessments, individual development plans

These are tools that may be used in talent development:

Training—a forum for learning in person or online

Stretch assignments—challenge roles for high-potential employees

Individual assessments—personality and work style inventories of employees

Individual development plans—documents that highlight an individual employee’s opportunities for growth and path of action

War for talent
Coined by McKinsey & Company in 1997, it refers to the increasing competition for recruiting and retaining talented employees.
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