PHRi flashcards

34 cards. Read the term and the definition here. The deck at the top of this page is optional.

Balanced Scorecard

A strategic performance framework measuring four perspectives: financial, customer, internal process, and learning and growth. HR measures such as training hours and engagement typically appear in the learning-and-growth perspective.

Contribution margin per unit

Selling price per unit minus variable cost per unit. It shows how much each unit sold contributes to covering fixed costs and generating profit, and it is the denominator in break-even volume.

Lewin change model

A three-stage model of organizational change: unfreezing existing behavior, moving to a new state, and refreezing so the new behavior becomes the norm. It emphasizes readiness and reinforcement.

PESTLE analysis

A macro-environment scan covering Political, Economic, Social, Technological, Legal, and Environmental factors. HR uses it to anticipate labor law changes, demographic shifts, and skills shortages affecting workforce plans.

Stuck in the middle

Porter's term for a firm that pursues neither clear cost leadership nor clear differentiation, leaving it without competitive advantage. Such firms typically earn below-average returns because they cannot defend either position.

Turnover rate

Separations divided by average headcount for the period, multiplied by 100. Analysts separate voluntary from involuntary and regrettable from non-regrettable turnover before drawing conclusions.

Cost per hire

Total internal and external recruiting costs divided by the number of hires in the period. The standard formula is codified in ANSI/SHRM 06001 and supports benchmarking across requisitions and business units.

Four-fifths rule

A guideline stating adverse impact may exist when a protected group's selection rate is less than 80 percent of the highest group's rate. It is a screening indicator, not a legal finding by itself.

Yield ratio

The percentage of candidates advancing from one recruiting stage to the next, such as applications to interviews or offers to hires. It helps forecast how many applicants are needed to fill a requisition.

Job specification

The portion of job analysis output listing the knowledge, skills, abilities, and other characteristics a worker needs to perform the job. It supports recruiting criteria and selection test design.

9-box grid

A talent matrix plotting performance against potential, producing nine cells from low to high. Organizations use it to identify high potentials, plan succession, and target development investments.

Criterion-related validity

The degree to which a selection measure predicts job performance, shown by correlating scores with a performance criterion. Predictive designs test applicants over time; concurrent designs compare current employees.

Kirkpatrick levels

Four evaluation levels for training: reaction, learning, behavior, and results. Behavior requires on-the-job application, and results link training to business outcomes such as productivity or retention.

ADDIE model

An instructional design cycle of Analysis, Design, Development, Implementation, and Evaluation. It is iterative, and evaluation findings feed back into later analysis and redesign.

Needs assessment levels

Training needs are analyzed at three levels: organizational (where gaps matter), task or operational (what must be taught), and individual or person (who needs the training).

70-20-10 model

A learning framework attributing roughly 70 percent of development to challenging experience, 20 percent to relationships and coaching, and 10 percent to formal courses. It guides blended development design.

Spaced practice

Distributing practice sessions over time with rest intervals. Compared with massed practice, it produces slower initial gains but markedly better long-term retention and transfer.

Onboarding four Cs

Compliance covers rules and policies, clarification covers role expectations, culture covers norms and values, and connection covers relationships. Effective onboarding addresses all four in the first months.

Compa-ratio

Employee base pay divided by the midpoint of the assigned pay range. A value of 1.00 means pay at midpoint; values below 0.80 typically signal pay near or below range minimum.

Range penetration

Employee pay minus range minimum, divided by the difference between range maximum and minimum. It expresses an individual's position within a grade as a percentage of the range.

Point-factor job evaluation

A method assigning points to compensable factors such as skill, effort, responsibility, and working conditions. Total points determine job worth and grade assignment, making the method the most defensible.

Broadbanding

Collapsing many narrow pay grades into a few wide bands. It supports lateral moves and skill development but requires stronger market data and manager discipline to control pay growth.

Market positioning policy

The chosen relationship between pay and market data: lead (about 75th percentile), match (about 50th), or lag (about 25th). Lag policies usually offset lower base pay with variable pay or benefits.

Salary basis test

An FLSA requirement that exempt employees receive a predetermined, fixed salary not reduced for quality or quantity of work. It must be met along with a duties test for exemption.

eNPS

Employee Net Promoter Score, calculated as the percentage of promoters minus the percentage of detractors on a likelihood-to-recommend question. It ranges from minus 100 to plus 100.

Herzberg two-factor theory

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate. Motivators such as achievement, recognition, and responsibility create genuine satisfaction and engagement.

Psychological contract

The unwritten mutual expectations between employee and employer beyond the formal contract. Perceived breach lowers engagement, trust, and discretionary effort, and raises turnover intention.

Acquiescence bias

A response tendency to agree with survey statements regardless of content. Mixed item direction and reverse-scored items help detect and reduce it in engagement surveys.

Just cause seven tests

A framework for discipline review: notice, reasonable rule, investigation before discipline, fair investigation, proof, equal treatment, and penalty proportionate to the offense and record.

Mandatory bargaining subjects

Wages, hours, and other terms and conditions of employment that the parties must negotiate in good faith. Refusing to bargain these to impasse can constitute an unfair labor practice.

Progressive discipline

A graduated response to misconduct or performance problems, typically verbal warning, written warning, suspension, then termination. Each step requires documentation, consistency, and an opportunity to improve.

Full-time equivalent

Total scheduled hours of all employees divided by the hours of one full-time schedule. FTE normalizes headcount so part-time and full-time staffing can be compared and budgeted.

Role-based access control

Assigning system permissions by job role rather than by individual, following least privilege. Combined with audit logs, it limits exposure of HR data and supports compliance reviews.

Data minimization

A privacy principle limiting collection and retention of personal data to what is necessary for a stated purpose. It reduces breach exposure and supports compliance with regimes such as GDPR.