PHR study materials
PHR study resources

PHR key terms

PHR · Get comfortable with the vocabulary.

Strategic planning

The process of setting long-term goals for the organization, analyzing internal and external conditions, and deciding how people, money, and other resources will be allocated to reach those goals.

Related: SWOT analysis, Balanced scorecard, Key performance indicator
SWOT analysis

A structured review of an organization's internal strengths and weaknesses plus its external opportunities and threats, used to focus strategy, priorities, and resource decisions.

Related: Strategic planning, Benchmarking
Balanced scorecard

A measurement framework that tracks results across financial, customer, internal process, and learning and growth perspectives so leaders monitor strategy execution rather than financial results alone.

Related: Strategic planning, Key performance indicator
Key performance indicator

A quantifiable measure selected because it signals how well the organization or a function is achieving a critical objective; good indicators are few in number and tied directly to strategy.

Related: Balanced scorecard, Benchmarking
Benchmarking

Comparing an organization's practices, processes, or results against peers or recognized leaders in order to spot gaps and set improvement targets.

Related: Key performance indicator, Market pricing
Human resource information system

Software that stores and processes employee data such as personnel records, payroll inputs, benefits enrollment, and compliance reporting, giving HR one source for workforce information.

Related: Key performance indicator
Change management

A planned approach to moving people from current practices to a desired future state through communication, stakeholder support, training, and reinforcement so the change holds over time.

Related: Transfer of training, Strategic planning
Job analysis

The systematic gathering of information about a job's duties, tasks, working conditions, and required worker characteristics; it underpins job descriptions, pay decisions, and selection criteria.

Related: Job description, Competency model, Job evaluation
Job description

A written summary of a job's essential duties, reporting relationships, and minimum qualifications, usually derived from job analysis and used in recruiting, screening, and accommodation decisions.

Related: Job analysis, Competency model
Competency model

A defined set of knowledge, skills, abilities, and behaviors that predict success in a role or organization, used to structure hiring, development, and performance management.

Related: Job analysis, Structured interview, Workforce planning
Workforce planning

Forecasting how many employees and which capabilities the organization will need, then comparing that demand with the supply of talent available internally and in the external labor market.

Related: Competency model, Succession planning
Succession planning

Identifying and preparing internal candidates for key roles so replacements are ready when vacancies occur, typically through competency assessment, mentoring, and developmental assignments.

Related: Workforce planning, Competency model, Mentoring
Structured interview

A selection interview in which every candidate receives the same predetermined questions and is scored on a consistent rating scale, reducing bias and improving the accuracy of hiring decisions.

Related: Criterion validity, Adverse impact
Adverse impact

A substantially lower selection, promotion, or retention rate for a protected group compared with a reference group; it can trigger legal scrutiny even when no discriminatory intent exists.

Related: Four-fifths rule, Structured interview
Four-fifths rule

An enforcement guideline stating that a protected group's selection rate falling below 80 percent of the highest group's rate is evidence of adverse impact and warrants employer justification.

Related: Adverse impact
Criterion validity

The degree to which scores on a selection tool correspond to a measure of job performance, such as supervisor ratings or output, showing the tool predicts who will succeed.

Related: Structured interview, Job analysis
Training needs assessment

A review of organizational, task, and individual factors to determine whether a performance gap is best addressed by training and, if so, what content learners actually require.

Related: Learning objective, Competency model
Learning objective

A specific, measurable statement of what participants should be able to do after training, describing observable behavior along with the conditions and standard of acceptable performance.

Related: Training needs assessment, Kirkpatrick's four levels
ADDIE model

A five-phase instructional design process - analysis, design, development, implementation, and evaluation - used to build training that addresses a clearly identified performance need.

Related: Training needs assessment, Learning objective
Kirkpatrick's four levels

An evaluation framework that measures training through participant reactions, learning gained, behavior change on the job, and results such as productivity, quality, or retention improvement.

Related: Transfer of training, Learning objective
Transfer of training

The extent to which learners actually apply what they learned in training back on the job; it depends on manager support, practice, and real opportunities to use the new skills.

Related: Kirkpatrick's four levels, Coaching
Mentoring

A developmental relationship in which a more experienced person advises, guides, and advocates for a less experienced colleague over time, supporting career growth and knowledge transfer.

Related: Coaching, Succession planning
Coaching

A short-term, goal-focused process in which a coach helps an employee build specific skills or improve performance through observation, feedback, and structured practice.

Related: Mentoring, Transfer of training
Total rewards

The combined value employees receive from pay, benefits, recognition, and development opportunities, managed as one package intended to attract, retain, and engage talent.

Related: Variable pay, Market pricing
Job evaluation

A systematic method for determining the relative internal worth of jobs using factors such as skill, effort, responsibility, and working conditions, producing a defensible pay structure.

Related: Pay range, Market pricing, Job analysis
Market pricing

Setting pay levels by collecting and analyzing compensation data for comparable jobs in relevant labor markets, then positioning the organization's pay relative to that market data.

Related: Job evaluation, Pay range, Benchmarking
Pay range

The minimum, midpoint, and maximum pay established for a job or grade, allowing differences in experience and performance while controlling internal equity and cost.

Related: Compa-ratio, Job evaluation
Compa-ratio

An employee's or group's salary divided by the midpoint of the applicable pay range, expressed as a percentage, showing how actual pay compares with the structure's target.

Related: Pay range, Market pricing
Variable pay

Compensation that changes with performance or results, such as bonuses, commissions, and gainsharing, rather than being guaranteed as part of an employee's base wages.

Related: Total rewards, Compa-ratio
Defined contribution plan

A retirement plan such as a 401(k) in which the employer contributes a set amount and the employee bears investment risk; the retirement benefit depends on the account's value.

Related: Total rewards, Vesting
Vesting

The process by which an employee earns a nonforfeitable right to employer-provided retirement or benefit contributions, usually according to a schedule based on years of service.

Related: Defined contribution plan
Exempt employee

An employee who meets federal salary and duties tests and is therefore not entitled to overtime pay under the Fair Labor Standards Act.

Related: Job analysis
Employee engagement

The degree to which employees are committed to the organization and invest discretionary effort in their work; engagement is linked to retention, productivity, and customer outcomes.

Related: Total rewards, Progressive discipline
Progressive discipline

A graduated response to performance or conduct problems - typically verbal warning, written warning, suspension, then termination - giving the employee notice and a chance to correct.

Related: Just cause, Grievance procedure
Just cause

A standard requiring that discipline rest on sufficient evidence, be applied consistently, fit the seriousness of the offense, and follow fair notice and an opportunity to respond.

Related: Progressive discipline, Collective bargaining
Grievance procedure

A formal, step-by-step process through which employees or their union raise complaints about contract or policy violations and seek resolution, often ending in binding arbitration.

Related: Just cause, Collective bargaining
Collective bargaining

Negotiation between an employer and a union over wages, hours, and other terms and conditions of employment, producing a contract that governs the represented bargaining unit.

Related: Grievance procedure, Just cause
At-will employment

An employment relationship either party may end at any time for any lawful reason, subject to contracts, collective agreements, and laws prohibiting unlawful discrimination or retaliation.

Related: Progressive discipline, Just cause
Occupational Safety and Health Administration

The federal agency that sets and enforces workplace safety and health standards and requires most employers to record certain work-related injuries and illnesses.

Related: Recordable incident rate, Risk assessment
Workers' compensation

A no-fault insurance system providing medical care and partial wage replacement to employees injured on the job, in exchange for limits on their ability to sue the employer.

Related: Return-to-work program, Occupational Safety and Health Administration
Risk assessment

The process of identifying workplace conditions or practices that could cause harm and estimating how likely and how severe the resulting injury or loss would be.

Related: Hierarchy of controls, Occupational Safety and Health Administration
Hierarchy of controls

A ranked approach to reducing hazards: eliminate the hazard, substitute something safer, apply engineering controls, then administrative controls and personal protective equipment.

Related: Risk assessment, Occupational Safety and Health Administration
Return-to-work program

A structured plan that brings injured or ill employees back to productive work as soon as medically appropriate, often with modified duties, shortening disability duration and controlling costs.

Related: Workers' compensation, Employee assistance program
Employee assistance program

A confidential employer-sponsored benefit offering short-term counseling, referral, and support services for personal problems that may affect attendance, safety, or job performance.

Related: Return-to-work program, Employee engagement