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Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Management A to Z Topic Keyword Definition Human A Resource Ability to Pay This term is found in labor negotiations and refers to the ability of an organization to afford a wage or benefit cost increase. Management Human This is when a right to a benefit is transferred from one person to another. (An example is the ownership of a life insurance A Resource Absolute Assignment Management policy or the right to retirement benefits). Human A rating method where the rater assigns a specific value on a fixed scale to the behavior or performance of an individual A Resource Absolute ratings instead of assigning ratings based on comparisons between other individuals. Management Human A Resource Accelerated Life This is when benefit payments from life insurance or long-term benefit plans are increased to cover expenses for a chronically Insurance Benefits ill individual. Management Human Accidental Death and A Resource This describes common group benefit plan coverage where insurance pays for a covered individual's permanent Management Dismemberment disfigurement, loss of a body part, or permanent loss of use of a body part or function of the body, or death. Human Accidental Death andAn addition to a Life Insurance Policy, it provides these benefits as a supplement to basic death insurance coverage. Typically, A Resource Dismemberment this additional amount is payable only if the insured dies in an accident or loses any two limbs or his/her eyesight in an Management (AD&D) Rider accident. (Some riders are third party administered). Page 1 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Accidental Death and An insurance plan that provides benefits in the event of loss of life, limbs, or eyesight as the result of an accident. As costed in A Resource Dismemberment ERI's Benefit Assessor software (and as sold), it is priced as U.S. cents ($.01) per $1,000 of coverage on a monthly basis. Management Insurance (AD&D) Human A Resource Accounting PrincipleThis Board published rules by which United States CPAs conducted their accounting. The Financial Accounting Standards Board (APB) Board (FASB) replaced it in 1974. Management Human Accounting Research A Resource These were the bulletins published in the U.S. before 1960, which stated the generally accepted accounting principles. Management Bulletin (ARB) Human In accounting, this is the method where expense items and income are recognized as incurred or earned, even if they have not A Resource Accrual Basis yet been received or paid. This is also called ACCRUAL METHOD. It is the opposite of CASH BASIS. Management Human In pension (defined benefit) plans, it is the accumulation and counting of pension credits for years of experience, age, and A Resource Accrual of Benefits earnings. In profit sharing plans (defined contribution), it is the vesting of funds accumulated in personal accounts. Management Human A Resource Accrual of Vacation This is the counting of vacation time due. Usually accumulation is by the number of hours or days worked. For example, after Pay two years of service, an employee would have the right to two weeks of paid vacation. Management Human The value of a pension plan's promised benefits calculated by an actuary (actuarial valuation), taking into account a set of A Resource Accrued Liability investment and benefit assumptions to a certain date. Management Page 2 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Accumulated BenefitThe value of a Pension Plan's vested and non-vested promised benefits using a formula (or formulae) typically based upon A Resource Obligation (ABO) employees' years of service. Management Human A Resource Accumulated Cost ofThis basic value reflects the cost of a single payment (premium) at the end of a term necessary to provide benefits to the Insurance insured that would have collected during that term. Management Human Accumulated FundingIn the United States, this is the amount by which the accumulated promises of a Pension Plan, as compared to the funds A Resource Management Deficiency available, do not meet certain minimum funding standards. Human A Resource Accumulated Value In profit sharing plans, this is the amount of money available in an individual account, including earnings. Management Human A life insurance term where dividends are left in a policy so that they can earn tax-free interest. Sometimes called Accumulated A Resource Accumulation OptionInterest Option. Management Human A Resource Accumulation PeriodA Deferred Annuity period in which premiums are payable. Management Human A ratio used by financial analysts where the available assets (cash, marketable securities, and account receivables) are divided A Resource Acid Test by the current liabilities (Current Assets/Current Liabilities). Also called the Quick Ratio. Management Page 3 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human When one organization purchases another, with the surviving organization being the purchaser. (As opposed to a Merger, where both organizations might change forms.) Acquisitions may be of two types - purchase of assets or purchase of stock. A Resource Acquisition The latter includes purchase of all liabilities, including retirement and welfare plans. The former often does not include these Management liabilities (although union fund retirement plan obligations are not escaped with an asset only purchase). Human A Resource Acquisition Expenseshese are costs associated with and caused by one organization purchasing another. Also called Acquisition Costs. Management Human Across-the-board General increase amount given to all eligible employees; may be either a flat amount or a percentage of base rate, sometimes A Resource Management Increase referred to as general increase. Human The employment of a nonconstraint resource for the sake of keeping busy unrelated to whether it is useful in supporting A Resource activation system throughput. Management Human Actively at Work Should an employee's health insurance coverage be scheduled to commence and that employee is absent from work for A Resource Provision certain specified reasons, the coverage will not commence until the employee returns to work. Management Human A Resource Activities of DailyActivities of daily living include getting in and out of bed, dressing, bathing, eating, and generally getting around inside the Living (ADL) home. Management Human A Resource Actual Hours The number of hours worked during a pay period, as compared to the scheduled hours. Management Page 4 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Actuarial These are assumptions made by actuaries regarding mortality, morbidity, interest, expense and other forecasts. In insurance, A Resource Assumptions they are used to set insurance reserves. In retirement plans, they are used (along with salary levels and turnover) to determine Management the annual contribution deemed necessary to a pension plan. Human A Resource Actuarial Cost One of many mathematical approaches by which an actuary determines the annual amount a Pension or Benefit Plan Sponsor Method should contribute. Management Human A Resource Actuarial Departmenthe department, within an insurance company, that determines the reserves needed for liabilities. Management Human An alternative form of a benefit equal in value. For example, a Lump Sum payout of a benefit rather than smaller monthly A Resource Actuarial Equivalenpayments. Management Human In a pension or a benefit plan trust, this is the total amount needed to meet promised benefits. This set of mathematical procedures typically calculates the value of benefits to be paid, the funds available, the annual contribution required, and the A Resource Actuarial Valuation Management amount of expense that an organization can take on for accounting and tax purposes. Human A Resource Actuarially Sound This is a description of when a Voluntary Employee Beneficiary Association Plan (VEBA) or pension plan has the amounts of funds necessary to meet liabilities. Management Human In life insurance, this is a professional who calculates mortality rates, morbidity rates, lapse rates, premium rates, policy A Resource Actuary reserves and other values. In pension work, a professional who applies these and other principles to calculate retirement plan Management obligations. Page 5 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human ADEA (Age In the United States, the Age Discrimination in Employment Act of 1967 protects employment rights of individuals age 40 and A Resource Discrimination in over. 1978 amendments raised the minimum mandatory retirement age to 70 years of age for most employees. Management Employment Act) Human A Resource Adjustable Life A variable life insurance contract where a person can change his or her annual premiums and the amount of coverage Insurance Policy provided. Management Human Administrative Common to health welfare plans, where an organization employs an outside organization to provide administrative services for A Resource self-funded plans. The ASO Contract or provider provides claim and policy administration, but the purchasing organization Management Services Only (ASO) retains financial responsibility. ASO providers are also called THIRD-PARTY ADMINISTRATORS. Human An organization designated under the legal terms of the contract, plan, or trust to operate and direct a Benefit Plan. This is A Resource Administrator almost always a corporation, rather than an individual or the Plan Sponsor. Management Human In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. Also called an A Resource Admitted Reinsurer AUTHORIZED REINSURER. Management Human A Resource Advance Funding An organization deposits funds in a plan in advance of the time when funds will be distributed. Management Human Advanced This is the insurance industry's misnomer for the main company's home office department that provides technical and A Resource Underwriting marketing assistance to agents in the field. Management Department Page 6 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human This is where a not obviously discriminatory practice affects a protected group of employees. This term is used in salary A Resource Adverse Impact administration, retirement, and benefit discrimination tests, as well as in general human resource practices. Management Human A Resource Adverse Selection Occurs when an employee or group of employees purchase or select coverage with a greater than likely loss at the expense of an insurance company (or the organization if it is self-insured). This is also called ANTI-SELECTION. Management Human A Board of Directors member who is not a current employee, but who may be either a retired employee or one who does A Resource Affiliated Director Management business with the organization on which he/she serves as a member. Human An Internet term related to the sharing of links. In some cases, two sites link to each other on a reciprocal basis. The term A Resource Affinity Provider partner is not used. Management Human Carried out on behalf of women and disadvantaged groups and members of such groups are placed in dominant positions. A Resource Affirmative action Management Human A Resource Age Discrimination In the United States, an employer is prohibited from treating individuals over age 40 differently because of their age. Management Human A Resource Age of Majority The legal term used for when an individual can enter into and be bound by a legal contract. Management Page 7 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Several definitions: 1) A service or business authorized to act on the behalf of others. (For example, an employment agency Human that refers employees to organizations for a fee.)(2) A government's administrative section. (3) A legal term describing the A Resource Agency relationship between two parties -- a principal and his or her agent, representing the principal in business transactions with a Management third party. Human A Resource Agency Agreement A contract that describes an agent's authority. Management Human A distribution system whereby insurance companies use their own commissioned agents to sell and deliver insurance policies. Resource Agency System The agency system is the most common system for distributing individual life insurance products and includes the branch A office distribution system and the general agency distribution system. Also called the ordinary agency system. See also branch Management office distribution system, brokerage distribution system, and general agency distribution system. Human A Resource Agent An individual who sells insurance policies as either a Direct Writer or Independent Agent. Also services insurance policies for clients. Management Human A Resource Agent of Record The agent or broker who is recognized by the insurer as the person to whom commission is to be paid. Management Human The portion of the insurance application in which the agent reports anything he or she knows or suspects about the proposed A Resource Agent's Statement Management insured that is not reported by the applicant or proposed insured. Human Aggregate Funding A method of accumulation of money for a pension plan, where an actuary determines the present value of all future payments A Resource Method(s) of benefits and deducts from this value any funds that may be on hand with trustee or with the insurance company and Management distributing the balance as a cost over the future. Page 8 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Aggregate MortalityA type of mortality table that shows total statistics for the probability of living and dying throughout a person's entire life cycle. It A Resource Table is based on the combined statistics of both the Ultimate Mortality Table and the Select Mortality Table. Management Human The practice of increasing market survey data by an assumed percentage, which is representative of wage movement, to bring A Resource Aging Survey Data the data to a consistent point in time. Also known as 'advancing' or 'trending' the data. Management Human A contract under which one party provides something of value to another party in exchange for a conditional promise. This Resource Aleatory Contract promise is that the other party will perform a stated act if a specified, uncertain event occurs. Insurance contracts are aleatory A (dependent on chance) because the policy owner pays premiums to the insurer, and in return the insurer promises to pay Management benefits if the event insured against occurs. Human A Resource Alien Corporation A company that is incorporated under the laws of another country. Compare to DOMESTIC CORPORATION and FOREIGN CORPORATION. Management The assignment of a plan participant's benefits to an individual other than the participant. In the United States, ERISA generally Human A Resource Alienation of Benefitshibits such alienation of benefits, although exceptions to this rule exist and include the use of a participant's vested benefit Management as collateral for a loan. The ERISA prohibition on alienation of benefits prevents creditors from attaching an individual's pension benefits. Human All-Causes In the context of health insurance, this is a deductible that must only be satisfied once during a given period of time. If the A Resource period of time is a calendar year, as it usually is, then this type of deductible is known as a calendar year deductible. Contrast Management Deductible with a PER CAUSE DEDUCTIBLE. Human A method of funding a pension plan whereby a portion of the total plan funds is allocated to each participant. This type of A Resource Allocated Funding funding is often achieved through the purchase of annuities or insurance contracts for each participant. Contrast with Management unallocated funding. Page 9 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Allowance Payments such as those for hardship, relocation, or the education of dependent children. It is distinguished from differential, A Resource Supplemental which is a payment to offset differences in costs between the home and assignment locations. Management Human A Resource All-Salaried Work A pay policy that makes exempt/nonexempt status 'invisible' to workers. Under this policy, all employees are paid on a salaried Force basis and all pay is defined in the same terms, such as a monthly or annual salary. Management This is an IRS mechanism created to ensure that corporations, trusts, high-income individuals, and estates all pay at least Human Alternative Minimumsome minimum amount of tax, regardless of deductions, exemptions or credits. The AMT is triggered when there are large A Resource Management Tax (AMT) numbers of personal exemptions on state and local taxes paid, by Incentive Stock Option (ISO) plans, or large numbers of miscellaneous itemized deductions or medical expenses. Human American Council of A Resource Life Insurance (ACLI) organization that collects and disseminates data on life insurance markets in the United States. Management Human American Stock An organization overseeing the buying and selling of publicly owned shares of stock listed on the exchange. A Resource Exchange (AMEX) Management Human Americans With A Resource Disabilities Act ofThis law creates non-discrimination protection for people with disabilities, similar to the Title VII of the Civil Rights Act of 1964 extended to other minorities. Under the law, employers may not refuse to hire a person due to his or her disability. Management 1990 (ADA) Human American-Style A stock option contract that can be exercised at any time between the date of purchase and the expiration date. Most A Resource exchange-traded options are American-Style options vs. European-style options, which may only be exercised during a Management Option specified period of time just prior to expiration. Page 10 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human 1) The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such A Resource Amortization payments must be sufficient to cover both principal and interest. 2) Writing off an intangible asset investment over the Management projected life of the assets. Human A Resource Amortization Basis The process of paying off an interest-bearing liability through a series of installment payments. Management Human analytic workplace Design based on established physical and behavioral concepts, including the known working habits of people. Produces a A Resource Management design workplace environment well within the range of human capacity and does not generally require modification or improvement. Human The date used in some merit-pay systems at which a review of the employee's salary occurs. It may be the anniversary of A Resource Anniversary Date hiring, last pay increase, promotion or some other reference point. Management Human The 12-month period following an employee's date of hire or date of re-employment (after a one-year break in service), and A Resource Anniversary Year each succeeding 12-month period. Management Annual Benefits Statements Under Human A Resource The Employee Employers are required to provide participants in qualified plans specific information about the status of their projected pension Retirement Income income or account balances. Management Security Act of 1974 (ERISA) Human Usually a lump-sum payment (cash, shares, etc.) made once a year in addition to an employee's normal salary or wage for a A Resource Annual Bonus fiscal or calendar year. Generally nondiscretionary and not based on predetermined performance criteria or standards. Management Page 11 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human A plan in which each year, usually at the end of the year, employees become eligible for an additional amount of money or A Resource Annual Bonus Plans other reward. Management Human A Resource Annual Budget A 12-month operating budget ending on the last day of the calendar year (i.e. December 31 of that year). Management Human Usually a lump-sum payment (cash or stock) made in addition to an employee's normal pay for a fiscal or calendar year, based A Resource Annual Incentive Management on performance (individual, business unit and/or company). May also be called an annual bonus. Human Annual Information In Canada, a report containing financial and other information that pension plans must file annually with the appropriate A Resource Return provincial or federal government. Management Human Annual Lease Enables Employers, in a number of ways, to determine the value of a worker's personal use of a company car. A Resource Valuation Management Automobiles Human Annual Renewable A Resource Term Life InsuranceLife insurance that allows an individual to continue the coverage at the end of the year for a specified number of years. This coverage is also called YEARLY RENEWABLE TERM INSURANCE (YRT). Management (ARTLI) Human Annual Report Form In the United States, a detailed report of membership and financial information pertaining to the operation of a pension plan. A Resource This report must be filed annually with the Internal Revenue Service. Management 5500 Page 12 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human An accounting report that insurers must file each year with the appropriate regulatory agency. This report contains detailed A Resource Annual Statement accounting and statistical data that regulators use to evaluate a life and health insurance company's solvency and its Management compliance with insurance laws. Annualized Increase Human A Resource Percent (also, Salary increase that is expressed as an annual rate of increase, calculated by dividing the number of months since the last Equivalent Annual increase (the dominator) into 12 (the numerator) and multiplying the result by the increase percent. Management Percent Increase) Human Annually Renewable A Resource Term (ART) See yearly renewable term (YRT) insurance. Management Insurance Human Annuities and AnnuiAn annuity is a contract for the payment of specified or objectively determinable periodic payments over a specified period of A Resource Contracts time or over the lifetime of the recipient. Management Human A calculation of probability of dying at each age. Used by actuaries to calculate premiums and reserves for annuities in which Annuity Mortality benefits are paid only if a designated person is alive. Annuity mortality tables usually project lower rates of mortality than do A Resource Table Management mortality tables that are used for life insurance. See also MORTALITY TABLES. Human A Resource Anti-Selection Occurs when an employee or group of employees purchase or select coverages with a greater than likely loss at the expense of an insurance company (or the organization if it is self-insured). This is also called Adverse Selection. Management Human When a principal (client who hires an agent) suggests to a third party that the agent may act on the principal's behalf. The third A Resource Apparent Authority party believes in the authority of the agent, but that authority was not expressly conferred; it is implied. Management Page 13 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human The person who has applied to a job advertised or someone who has submitted their CV for inclusion on the searchable A Resource Applicant database. Management Human A paper or electronic form that must be completed by an employee who desires a certain benefit. Information provided by the A Resource Application individual allows the insurance carrier or employing organization the information necessary to enroll (or not enroll) the Management individual. Human Resource Appraisal See Performance planning. A Management Human Approval Type An agreement issued along with a conditional premium receipt that provides temporary life insurance coverage as of the date A Resource Temporary Insurancethe insurer approves the proposed insured as a standard risk. See also insurability conditional premium receipt and temporary insurance agreements. Compare to insurability type temporary insurance agreement. Management Agreement Human A Resource Arbitration For collectively bargained single employer plans, the bargaining agreement's grievance and arbitration procedure may double Management as a claims procedure. Several definitions: 1) Allowance paid to compensate expatriate employees for medium-term cultural and hardship factors Human present in his or her country of assignment as compared to the base country. (This is also known as a hardship allowance.) (2) A Resource Area Differential Management Allowance paid to domestic employees in some geographic areas, which is based on different average pay levels and or cost of living. Human These are standard survey formats used across geographic boundaries so that consistent reporting can illustrate the same A Resource Area Wage Surveys jobs and their different pay in various geographic areas. Management Page 14 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Arithmetic Mean (as defined by the U.S. DOL) is the rate of wages to be determined, to the extent feasible, by adding the A Resource Arithmetic Mean wages paid to workers similarly employed in the area of intended employment and dividing the total by the number of such Management workers. This computation usually produces a Weighted Average. Human The process of conducting In Process Reviews (IPRs) and After Action Reviews (AARs). IPRs help to determine initial expectations, ascertain strengths and weakness of both employees and the organization, and identify key issues and A Resource assessing organizations whose willing support is needed to accomplish the mission. AARs determine how well the goals are being Management accomplished, usually by identifying areas to sustain and improve. Human Resource Assessment Center A method for assessing aptitude and performance; applied to a group of participants by trained assessors using various A aptitude diagnostic processes in order to obtain information about applicants' abilities or development potential. Management Human A Resource Assessment Method An early method of funding life insurance where members of the plan were charged in advance for the amount of money that the administrators estimated would be needed to pay each year's death claims. Also called the pre-death assessment method. Management Human A Resource Assessor Series Geographic, Salary, Benefit, Relocation and Executive Compensation software and databases designed to assist the Management compensation and benefits analyst and manager with his/her research. Human An asset is anything of value that is owned by an organization or an individual. Examples are cash, computer equipment, and A Resource Asset investments. Assets can be any percentage of real property or of personal property that can be liquidated in order to pay debts. Management Assets are shown on the balance sheet of a company's Annual Statement. Human Asset Investment The periodic review of the actions of the asset manager(s) who are investing a qualified pension plan's assets. The plan A Resource Performance administrators of such plans have a fiduciary responsibility to conduct this review regularly. Management Page 15 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human A transaction whereby the purchaser only acquires title to certain identified assets and or liabilities of the seller, with no A Resource Asset Sale obligation for any non-identified liabilities or assets. (A buyer may, for example, acquire only one line of product from a seller.) Management Human A Resource Asset Share A method of calculating that imitates the way in which the assets of a particular block of policies should grow, depending on Calculation certain assumptions about future interest rates, morbidity, mortality, expenses and so on. Management Human Asset-Liability The process of investing, purchasing, selling and otherwise adjusting an insurance company's asset holdings so that cash is A Resource Management Matching available when it is needed to cover the company's liabilities. Human A Resource Assignee The party to whom all or certain contractual rights are transferred under an absolute or collateral assignment. Management Human Several definitions: 1) The transfer of ownership rights in a life insurance policy or other type of contract from one party to another. (2) The document that causes the transfer of ownership rights to go into effect. See also ABSOLUATE ASSIGNMENT A Resource Assignment Management and COLLATERAL ASSIGNMENT. Human A Resource Assignment LocationThe country in which an expatriate lives and works during an assignment. Management Human Assignment of An authorization directing an insurer to make payment directly to a provider of benefits, such as a physician or dentist, rather A Resource than to the insured. Management Benefits Page 16 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human A Resource Assignor The person or party who transfers certain contractual rights under an absolute or collateral assignment. Management Human Association A Resource Organization Organization insurance extended to the members of a trade, professional, or other association. Management Insurance Human Assumption A reinsurance agreement by which one company permanently transfers (cedes) full responsibility for a block of policies to A Resource Management Reinsurance another company. After the cession, the ceding company is no longer a party to the insurance agreement. Human The current age of the insured. Also refers to the age of the insured at the time the insured's policy was issued, plus the A Resource Attained Age number of years elapsed since the policy was issued. Management Human Attained Age The changing of a life insurance policy from one form of insurance to another (such as from term life insurance to whole life A Resource Conversion insurance) at a premium rate that is based on the age the insured person has reached at the time the change takes place. Management Human Attendance Bonuses are provided to employees who have maintained perfect attendance for a period of time, typically a full A Resource Attendance Bonus quarter or year. These bonuses are usually provided in the form of a flat cash amount, additional paid time off, or gift awards upon completion of the period of perfect attendance. Management Human Attending PhysicianA written statement from a physician who has treated, or is currently treating, a proposed insured or an insured for one or more A Resource conditions. The statement provides the insurance company with information relevant to underwriting a risk or settling a claim. Management Statement (APS) Page 17 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human A Resource attributes Characteristics or qualities or properties. Attributes of the leader fall into three categories: mental, physical, and emotional. Management Human A Resource Attrition A term used to describe voluntary and involuntary terminations, deaths, and employee retirements that result in a reduction to the employer's physical workforce. Management Human authoritarian A style of leadership in which the leader tells the employees what needs to be done and how to perform it without getting their A Resource Management leadership advice or ideas. Human In the United States, this is a corporation that is licensed to accept reinsurance in a state or territory. They are often also called A Resource Authorized Reinsurean Admitted Reinsurer. Management Human Leader determines policy of the organization, instructs members what to do/make, subjective in approach, aloof and A Resource Autocratic leadershimpersonal. Management Human A Resource Automatic Dividend For a specific life insurance policy, this is the dividend option that applies in the event that the policy owner does not choose an Option option. See DIVIDEND OPTIONS. Management Human Automatic For a specific life insurance policy, a specified nonforfeiture benefit that automatically becomes effective when a renewal A Resource premium is not paid by the end of the grace period and the policy owner has not elected another nonforfeiture option. See also Management Nonforfeiture Optiononforfeiture options. Page 18 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Automatic Premium A life insurance nonforfeiture option that allows the insurer to pay overdue premiums on a policy by establishing a loan against A Resource Loan (APL) the policy's cash value. See also NONFORFEITURE OPTIONS. Management Human A reinsurance agreement in which the reinsurer agrees, for a stipulated type of risk, to accept each risk or a portion of each A Resource Automatic risk submitted by the ceding company, up to a certain limit, provided the ceding company insures up to its usual retention limit. Reinsurance Treaty Management In this agreement, the ceding company assumes full underwriting responsibility for all cases reinsured. Human Automatic Wage A Resource Automatically increasing or decreasing wages according to a specific plan formula. Management Adjustment Human Automatic Wage Automatically increasing wages after specified periods of service, until the employee reaches the top of his or her salary range. A Resource Progression Automatic wage progression often is achieved through an automatic step-rate pay system. Management Human An allowance to an employee for the use of his/her own automobile, which may or may not be taxable. A Resource Automobile Benefits Management Human A Resource Automobile Insuranceompanies that maintain a fleet of cars for the use of employees who require transportation for business purposes may purchase insurance for automobiles and drivers of the automobiles. Management Human The average is the result of dividing the sum of two or more quantities by the number of quantities. Example: (a + b + c)/3 = the A Resource Average average. See also mean. Management Page 19 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Average Frequency Normally calculated on a department-wide or company-wide basis. It is determined by summing up the months between A Resource (Of Salary Increases)ncreases granted for the employee groups and dividing by the number of increases and employees. Management Human A Resource Average Hourly Hourly pay determined by dividing hours worked per period into the total wages earned for that period. Earnings Management Human Average Indexed In the United States, this is the figure on which social security disability, retirement and other benefits are based. The figure is A Resource an average of the monthly earnings on which a worker has paid Social Security tax. The figure is indexed, that is, adjusted to Management Monthly Earnings compensate for inflation. Human Average Percent Calculated by dividing the sum of salary increase amounts for all eligible employees by the eligible payroll. Both the numerator A Resource Increase and the denominator include those who were eligible and participated but received no increase. Management Human Average Straight- Hourly pay determined by dividing the hours worked per period into the total straight-time earnings for the period (excluding A Resource Time Hourly Earningsovertime). Management Human Awards, prizes and gifts are a traditional way for employers to recognize and reward employees for their contributions to the A Resource Awards company. Such contributions may comprise long years of service, a cost-saving suggestion, a good safety record, or outstanding performance. Management Human B Resource Baby boomers Those born between 1946 and 1964, when birth rates rose sharply, and now a popular target group for marketers. Management Page 20 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human The amount of lost earnings accruing between the time a plaintiff terminates employment and a subsequent measuring date. B Resource Back Pay Like Front Pay, it is not subject to the Civil Rights Act of 1991 $300,000 liability cap. Each can be awarded over and above any Management compensatory or punitive damages. Human A life insurance policy (usually a universal life insurance policy) in which most of the expense charges occur when the policy owner surrenders the policy or makes cash withdrawals from the policy. Such charges are usually highest in the early policy B Resource Back-Loaded Policy years and are often eliminated at the end of a certain number of years. See also front-loaded policy and universal life Management insurance. Human Resource Back-Loading The practice of providing a higher accrual of pension benefits during a participant's later years of employment. The practice is B designed to encourage and reward long service. Management Human B Resource Backup Withholding Refers to withholding 20% of payments for federal income taxes unless the payee has a correct Social Security number on file with the employer, or is otherwise not subject to withholding. Management Human B Resource Bail Out An acquisition transaction (usually initiated by the seller) in which the seller is in poor financial condition and another company Management purchases the financially troubled company and improves their financial condition. Human A financial statement of a company or other entity, showing what it owns (assets), what it owes (liabilities), and the owner's B Resource Balance Sheet Management investment (shareholders equity) at a point in time such as the end of the fiscal year. Human Balance Sheet An accounting term that describes a situation where debits and credits must match. The balance sheet approach is used to set B Resource Approach expatriate compensation. There the goal is to protect or equalize an expatriate's purchasing power while on assignment Management abroad. Its primary objective is to ensure equity among expatriates and their home or base country peers. Page 21 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) A popular strategic management concept developed in the early 1990's by Drs. Robert Kaplan and David Norton, the balanced Human scorecard is a management and measurement system which enables organizations to clarify their vision and strategy and B Resource Balanced Scorecard translate them into action. The goal of the balanced scorecard is to tie business performance to organizational strategy by Management measuring results in four areas: financial performance, customer knowledge, internal business processes, and learning and growth. Human B Resource Band Grading The grouping of life insurance policies according to death benefit amounts for the purpose of calculating loading or expense charges. Management Human A standard bankruptcy liquidates a business or individual. Then, subject to specific exemptions, assets of the bankrupt are B Resource Bankruptcy Management collected and paid to creditors. Human B Resource Bar Chart A graph displaying data in a frequency distribution represented by horizontal or vertical bars. Management Human Base Country or In international compensation, this is the country upon which an expatriate's compensation is based. It is usually the B Resource Home Country expatriate's home country or the country in which the employee's headquarters is located. Management Human B Resource Base Pay Base pay is the salary that would be paid for a position on the basis of its level. For expatriate's it is the stated home country salary before any addition of differentials, allowances or incentives for Foreign Service or required contributions. Management Human Determined by the sum of annual salaries and or wages (base rates) paid at the opening of business on the first day of the B Resource Base Payroll plan year or last day of prior year, e.g., Dec. 31, before any increase. Management Page 22 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Base Rate or Base The rate of pay set for a unit of work before anything extra is added. This rate does not include things like shift differentials, B Resource Wage Rate benefits, overtime, incentive premiums or any other pay element other than the base rate. Management Human B Resource Base Salary or Wage The basic rate of pay (excluding overtime pay). Management Human Base wage rate (or The hourly rate or monthly salary paid for a job performed. Does not include shift differentials, benefits, overtime, incentive B Resource Management base rate) premiums, or any pay element other than the base rate. Human The death benefit according to the terms of the original, basic contract of a life insurance policy. The basic death benefit does B Resource Basic Death Benefit not include the benefit for any supplementary riders, such as an accidental death benefit (ADB) rider. For policies whose death Management benefit remains constant, the basic death benefit is equivalent to the face amount. Human Basic Earnings Per The net earnings available to common shareholders of an organization divided by the weighted average of total shares B Resource Share outstanding. No consideration is given in this calculation for common stock equivalents such as stock options. Management Human B Resource Basic Mortality Table mortality table without a safety margin. Also called a basic experience table. See also mortality table and safety margin. Management Human Basic Plan with MajoA medical insurance plan that provides for coverage of almost all hospital and surgical charges and some other medical B Resource expenses, up to a specified amount without a deductible. Management Medical Page 23 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Commonly covered items on an insurance policy (e.g. Dental procedures specified in a dental insurance plan such as B Resource Basic Services diagnostic, preventive, and routine restorative dental services). Management Human Several definitions: 1) From an investment point of view, this is a provision that allows insurance companies to invest a small percentage of their assets generally without regard to statutory restrictions. (2) From an accounting point of view, this is a B Resource Basket Clause clause that permits life, and health insurers to hold a specified amount of their assets as nonauthorized assets, which are not Management restricted in the same way as authorized assets. Human Resource Behavior Based Any performance assessment system that concentrates on the behaviors of those being rated (such as behavioral expectation B Appraisal scales, behaviorally anchored rating scales, or behavioral observation scales). Management Human An interview technique which focuses on a candidates past experiences, behaviors, knowledge, skills and abilities by asking B Resource Behavioral based the candidate to provide specific examples of when they have demonstrated certain behaviors or skills as a means of interview predicting future behavior and performance. Management Human The behavior of the employee which is the subject of measurement and appraisal in terms of whether or not the behaviors B Resource Behavioral shown by an employee are those identified by job analysis/competency profiling as those contributing to team and/or Management competency organizational success. Human Behaviorally An appraisal that requires raters list important dimensions of a particular job and collect information regarding the critical B Resource anchored rating scalehaviors that distinguish between successful and unsuccessful performance. These critical behaviors are then categorized Management (BARS) and appointed a numerical value which is used as the basis for rating performance. Human B Resource beliefs Assumptions and convictions that a person holds to be true regarding people, concepts, or things. Management Page 24 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human Below Market Rate This is a compensation-related loan. It is any loan bearing a below-market interest rate made in connection with performance B Resource Employee Loans of services directly or indirectly between an employer and employee. Management Human B Resource Benchmark job A standard job used to make pay comparisons, either within the organization or to comparable jobs outside the organization, to develop or validate a job-worth hierarchy. Pay data for these jobs are readily available in purchased surveys. Management Human B Resource Benchmark Job Data Market and company data for surveyed jobs. Management Human A set of measurements (metrics) that is used to establish goals for performance improvements. These are often derived from B Resource benchmark measures other firms that display "Best In Class" performance. Management Human A technique using quantitative or qualitative data to make comparisons between different organizations or different sections of B Resource Benchmarking the organizations. Management Human The person designated to receive the benefits resulting from the death of an employee, such as the proceeds of a life or B Resource Beneficiary accidental death insurance policy or benefits from a pension plan. See also Contingent Beneficiary, Irrevocable Beneficiary, Primary Beneficiary, and Revocable Beneficiary. Management Human Beneficiary Specific to Canada, an insurance policy beneficiary designation that is made in a separate written document after the B Resource insurance policy has been issued. Management Declaration Page 25 of 333 Powered by www.drawpack.com; All rights reserved. Encyclopedia Human Resource Management (2289 Terms) Human For insurance purposes this is the amount of money paid when an insurance claim is approved. Also known as the policy B Resource Benefit benefit. Management Human B Resource Benefit of A term used to describe the fact that annuity payments will be made as long as the designated recipient is alive at the time the Survivorship payment is due. This concept is used in the calculation of amounts due under life insurance settlement options. Management Human Benefit Plans - Health B Resource The two types of health care benefit programs are indemnity programs and health maintenance organizations. Management Care Human Benefit Plans - A Retirement Plan is an agreement on the part of management to provide a vehicle for the retirement income needs of B Resource Retirement employees. Such plans may be qualified or non-qualified for tax purposes. Management Human A cost-containment measure utilized by an organization to reduce its expenses through reduction in benefit coverage (e.g. B Resource Benefit Reductions increase in medical plan deductibles, increase in employee contributions, reduction in annual limits in den
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