1	Organizational values		_____	Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay
2	Mission statement		_____	Process of measuring and evaluating an employee's adherence to performance standards and providing feedback to the employee
3	Pay compression		_____	Tools, activities, and processes that an organization uses to manage, maintain, and/or improve the job performance of employees
4	Pay for performance (P4P, PfP)		_____	Pay systems in which employee characteristics, rather than the job, determine pay
5	Pay grades		_____	Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range
6	Pay ranges		_____	Beliefs and principles defined by an organization to direct and govern its employees' behavior
7	Performance appraisal		_____	Occurs when there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority; also known as salary compression
8	Performance bonus		_____	Set the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade
9	Performance management		_____	Concise outline of an organization's strategy, specifying the activities it intends to pursue and the course its management has charted for the future
10	Performance standards		_____	Learning/development programs offered initially in a controlled environment with a segment of the target audience
11	Performance-based pay		_____	Behaviors and results as defined by an organization to communicate the expectations of management
12	Person-based pay		_____	One-time payment made to an employee; also called a lump-sum increase (LSI)
13	Pilot programs		_____	Training provided to employees at the work site utilizing demonstration and performance of job tasks
14	On-the-job training (OJT)		_____	Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay