GLOSSARY

What Is the Definition of Total Annual Income? Annual Income: The total earnings an individual receives from all income sources over a 12-month period. Gross Annual Income: Total earnings before t

What Does Absent Without Leave (AWOL) Mean? Absent Without Leave (AWOL) refers to a situation where an employee is absent from work without informing or obtaining prior approval from their employer.

An appointment letter is a formal document issued by an employer to a candidate who has accepted a job offer. It confirms the candidate’s employment and outlines the key terms and conditions of thei

Attendance regularisation helps employees to correct or rectify their attendance data. At times, employees might have technical issues with the biometric system. They might end up forgetting to lock t

An attendance policy includes a set of rules for the locking attendance of employees. It includes various employee attendance rules for factors like the number of leaves allowed, number of options lea

Appraisal is a regular evaluation process for gauging employees’ performance and justifying the milestones they achieved for raising their gross pay. Mostly, the appraisal is annual. The performance

Absconding is when an employee has taken an unauthorised absence for a couple of days together. The person has failed to inform their manager, peers, HR, or any other staff about their absence from wo

Absenteeism is a situation referred to frequently planned or unplanned employee absence from the organisation.  Planned absenteeism refers to the time-off from the business for the period that the e

What Is Bereavement Leave? Bereavement leave is a type of leave granted to employees following the death of a close family member or loved one. It allows employees time to grieve, attend funeral or m

What is a Balanced Scorecard? Meaning & Definition As per the standard Balanced Scorecard meaning, it is a framework that transforms traditional business strategies into operational ones to drive

Buddy System Meaning | What is the Buddy System? A buddy system is a way to onboard new employees into the organisation with familiarity and acquaintance from day one. New employees get a mentor or a

What is a Blended Workforce Meaning? A blended workforce setup in an organisation can include a mix of: Freelancers Part-timers Gig workers Consultants Temporary staff Remote workers Contrac

What is a Bell Curve in Performance Appraisal? A Bell Curve in Performance Appraisal is a performance evaluation method that uses a normal distribution curve to classify employees into different perf

Basic salary is the fixed minimum salary that an employee draws from the organisation. This salary is mostly credited every month. Some companies offer it directly at the end of the month. At the same

When you are searching for what is biometric, it means it is a device that reads or analyses the biological measurements of a person standing before the device. For instance, fingerprint mapping, reti

A Confirmation Letter is an official document issued by an employer to confirm an employee’s successful completion of the probation period and continuation of employment. It formally establishes tha

What is Cess? A cess is a form of tax imposed by the government for a specific purpose, such as funding education, healthcare, infrastructure, or social welfare initiatives. Unlike general taxes, the

Define Commission  Commission is a performance-linked, variable component of employee compensation paid when predefined targets—such as sales volume, revenue, profit, or successful closures—are

What is Casual leave?  Casual Leave (CL) is a type of short-term leave granted to employees to manage personal matters, emergencies, or unforeseen events that require their immediate attention. Unli

What is CTC (Cost to Company)? Cost to Company (CTC) is the sum of money a company spends on an employee on a yearly basis. It covers all direct &  indirect elements, and savings that lead to th

What is the Meaning of Compensatory Off? A comp off is leave the employer grants the employee for working extended hours or on a holiday. For example, an employee can work for some hours on a Sunday

Definition  Dearness Allowance (DA) is a cost-of-living adjustment paid to employees, mainly government employees and pensioners, to help offset the impact of inflation. It is calculated as a percen

Employee welfare refers to the services, facilities, benefits, and workplace initiatives provided by an organisation to support employees' physical, mental, social, and financial wellbeing. It covers

What Is Employees' State Insurance Corporation (ESIC)? The Employees' State Insurance Corporation (ESIC) is a statutory body established by the Government of India under the Employees' State Insuranc

What Is an Employee Orientation? Employee orientation is the process of introducing new hires to an organization, its culture, policies, values, people, and work environment. It helps employees under

What is Employee Induction? Employee induction is the process of introducing new employees to an organization, its culture, policies, work environment, and job responsibilities. It is usually conduct

An employee grievance refers to a formal complaint or concern raised by an employee regarding workplace issues that affect their job satisfaction, working conditions, or professional relationships. Th

What is the Financial Year (FY)? A Financial Year (FY) is a 12-month period used by individuals, businesses, and governments to record income, expenses, investments, payroll, taxes, and other financi

What Is a Floating Holiday? A floating holiday is an optional paid day off that employees can use at their discretion, subject to the organization's leave policy and manager approval. Unlike fixed pu

What is Form 19? Form 19 is an EPFO claim form used for the final settlement and withdrawal of an employee’s Provident Fund (PF) balance. Employees can submit this form after leaving a job, retirin

What is Form 10C? Form 10C is an Employees’ Provident Fund Organisation (EPFO) form used to claim benefits under the Employee Pension Scheme (EPS). Employees who leave their job before completing p

What is Form 15G? Form 15G is a self-declaration form submitted by eligible individuals to ensure that Tax Deducted at Source (TDS) is not deducted on specific types of income, such as interest from

Fixed pay refers to the guaranteed portion of an employee’s salary that remains consistent regardless of performance, incentives, or company profits. It is the stable component of compensation that

What is a Group Interview? A group interview is a recruitment method in which multiple candidates are interviewed simultaneously for one or more job positions. Instead of interviewing candidates indi

What is Grapevine Communication? Grapevine communication refers to the informal, unofficial flow of information within an organization. It spreads through casual conversations, social interactions, a

Definition Generation Z, also known as Gen Z or Zoomers, refers to the demographic cohort that follows Millennials (Generation Y) and precedes Generation Alpha. They are typically born between 1997 a

What is an HR Audit? A Human Resource Audit (HR Audit) is a systematic and comprehensive evaluation of an organisation’s HR policies, processes, practices, records, and systems. It assesses whether

HR compliance refers to an organisation’s adherence to applicable employment laws, labour regulations, workplace policies, and statutory requirements. It helps ensure that HR practices related to hi

Define Human Resource Human Resources (HR) is the organisational function responsible for managing people across the entire employee lifecycle—from talent acquisition and onboarding to performance

Definition  House Rent Allowance (HRA) is a component of an employee’s salary paid to help meet rental housing expenses. Under the Income Tax Act, a portion of HRA received can be partially or ful

What Is an Internship and How Does It Work? Internship: A temporary work experience program that provides practical industry exposure and professional skills. Intern: An individual who works under

What is Interview Scheduling? Interview scheduling is the process of coordinating interview dates, times, interviewers, candidates, meeting formats, and other logistics required to conduct a job inte

ITR filing refers to the process of submitting an Income Tax Return (ITR) to the government, declaring an individual’s or organization’s income, deductions, taxes paid, and tax liabilities for a s

Definition Induction, also known as employee onboarding, is the process of formally welcoming and integrating new employees into an organization. It helps them understand the company’s values, cult

What is Job Evaluation? Job evaluation is a systematic process used by organizations to determine the relative worth of different jobs within a company. It helps employers compare roles based on resp

Definition  Job Analysis is a systematic process of collecting, examining, and documenting information about a job. It defines what the job involves, how it is performed, and the skills, responsibil

Define Knowledge Transfer  Knowledge Transfer (KT) is a structured and intentional process through which critical skills, expertise, workflows, and organizational know-how are shared from one employ

Define KRA Key Responsibility Areas (KRAs) define the primary outcome areas an employee is accountable for in their role. Unlike task lists, KRAs focus on what must be achieved rather than how the wo

What does 'layoff' mean? Layoff: The temporary or permanent separation of employees from their jobs due to business-related reasons rather than individual performance or misconduct. Workforce Redu

What is Loss of Pay (LOP)? Loss of Pay (LOP), also called Loss of Pay Leave or unpaid absence in many organisations, refers to a salary deduction made when an employee is absent from work for a perio

What is Leadership Development? Leadership development is the process of improving an individual’s ability to lead, guide, motivate, and influence others within an organization. It focuses on build

What is Leave Encashment? Leave encashment is a policy-driven benefit that allows employees to convert their unused or accumulated leave balance into monetary compensation. Instead of availing time o

What Is the Formal Definition of Malicious Compliance in an Organizational Context? Malicious Compliance: Following workplace instructions or policies literally to expose flaws or create unintended

What is a Muster Roll? A Muster Roll is an official record used by an organisation to maintain details of employees or workers, particularly their attendance, working days, leave, and other employmen

What is a Mock Interview? A mock interview is a practice interview session designed to simulate a real job interview experience. It helps candidates prepare for actual interviews by practicing common

What is Maternity Leave? Maternity leave is a statutory leave granted to women employees to support them during pregnancy, childbirth, and postnatal recovery. It ensures that employees can take time

What is a Non-Disclosure Agreement (NDA)? A Non-Disclosure Agreement (NDA) is a legally binding contract that protects confidential information shared between two or more parties. It prevents individ

Define Notice Period  A notice period is the formally defined time an employee is required to continue working after submitting a resignation or receiving a termination notice. This period serves as

What is On-Roll Payroll? On-roll payroll refers to employees who are directly employed by a company and are part of its official payroll. These employees receive salaries, benefits, and are governed

Definition Organization Development (OD) is a systematic, research-based process aimed at improving an organization’s effectiveness, health, and performance through planned interventions in its pro

Paid Time Off (PTO) is an employer-provided benefit that allows employees to take approved time away from work while continuing to receive their regular pay. PTO policies can combine different types o

What are Professional Fees? Professional fees are payments made to an individual or organisation for specialised, professional, technical, advisory, or consultancy services. These payments are genera

A Performance Development Plan (PDP) is a structured plan that helps employees improve their capabilities, strengthen job performance, and work toward defined professional goals. It connects an employ

What Is a Pay Cycle? A pay cycle is the recurring schedule an employer follows to calculate, process, and distribute employee salaries. It determines how often employees are paid, such as weekly, bi-

Define Performance Improvement Plan (PIP) A Performance Improvement Plan (PIP) is a structured, formal document used by organizations to help employees improve performance that is below expected stan

Table of Content Types of Organisations That Offer Probation Periods Why Is It Important to Complete the Probation Period? What are the Benefits of the Probationary Period Employment Laws on P

What is Peers in HR? Peers are individuals who work at a similar level within an organisation or share comparable roles, responsibilities, experience, or status. In the workplace, peers are not d

Definition: A promotion is the advancement of an employee to a higher position, grade, or role within an organization, often accompanied by increased responsibilities, higher status, and better compe

What is Provident Fund(PF)? Provident Fund (PF) is a social security scheme and a government-imposed scheme which is meant to provide workers with monetary stability and retirement benefits. Monthly,

What Is Quality of Work Life (QWL)? Quality of Work Life (QWL) refers to the overall quality of an employee's work experience, encompassing job satisfaction, workplace environment, work-life balance,

What is the formal definition of a requisition in business procurement? Requisition: A formal request made by an employee or department to obtain goods, services, equipment, or resources. Purchase

A Right-to-Work State is a U.S. state where employees generally cannot be required to join a labor union or pay union dues as a condition of employment. These laws primarily regulate the relationship

What Is a Restricted Holiday? A Restricted Holiday (RH) is an optional holiday that employees can choose to take based on their religious, cultural, or personal preferences. Unlike gazetted or mandat

Definition Roles and Responsibilities define what an employee is expected to do within an organization — their specific duties, decision-making authority, and contribution toward achieving business

Definition: Rewards and Recognition (R&R) is a structured system implemented by organizations to acknowledge, appreciate, and motivate employees for their achievements, contributions, skills, or

Definition: Remuneration refers to the total compensation or payment that an employee receives from an organization in return for their work, skills, and services. It includes not only the basic sala

What is Reimbursement? Reimbursement is the process through which an employer reimburses an employee for compensation due to business related expenses incurred in the process of carrying out the job.

Introduction Succession planning is an essential human resource management strategy that helps organizations prepare for future leadership transitions and maintain business continuity. It involves id

What is Situational Leadership and how does the Hersey-Blanchard model define it? Situational Leadership: A leadership approach in which managers adapt their leadership style according to an employ

A Salary Increment is an increase in an employee’s existing salary or compensation offered by an employer. It is commonly provided during annual compensation reviews or when an employee takes on add

What Is Staffing? Staffing is the HR process of identifying workforce requirements, recruiting, selecting, hiring, training, and retaining employees to ensure an organization has the right people in

Table of Content What is the Purpose of Providing Stipends Who Is Eligible for a Stipend? How Does a Stipend Work? How to Calculate Stipends What are the Types of Stipends Pros and Cons of R

What is Suspension ? Suspension in HR and employment law is a term used to mean the temporary withdrawal of an employee of active duties and responsibilities in the organization. It is not an end of

What are TRACES? TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform of the Income Tax Department of India used to manage, reconcile, and administer Tax Deducted

What is Total Quality Management (TQM)? Total Quality Management (TQM) is a management approach focused on continuously improving the quality of products, services, processes, and overall organizatio

Talent acquisition refers to the strategic process of identifying, attracting, evaluating, and hiring skilled individuals to meet an organization’s workforce needs. Unlike traditional hiring, talent

What is Unconscious Bias? Unconscious bias refers to automatic judgments, assumptions, or stereotypes that individuals form about people without being consciously aware of them. These biases are infl

What is a Universal Account Number (UAN)? The Universal Account Number (UAN) is a unique 12-digit identification number assigned to every employee contributing to the Employees’ Provident Fund (EPF

What is a Voluntary Provident Fund? A Voluntary Provident Fund (VPF) is a voluntary savings scheme available to salaried employees who are already contributing to the Employees’ Provident Fund (EPF

What is Variable Pay? Variable pay is a component of an employee’s compensation that fluctuates based on performance, business results, or predefined targets. Unlike fixed salary, it is not guarant

Introduction White-collar and blue-collar workers represent two broad categories of employees, distinguished by the nature of their job responsibilities, work environments, and skill requirements. Wh

A Warning Letter is a formal written communication issued by an employer to an employee when there is a concern regarding performance, conduct, attendance, policy violations, or other workplace expect

Definition: Work From Home (WFH) is a flexible work arrangement where employees perform their job responsibilities remotely, usually from their residence, instead of commuting to a physical office. W

What is an X-Ray Search? X-Ray Search is an advanced recruitment sourcing technique used by recruiters to find candidate profiles and information from external websites through search engines like Go