The Ultimate HR Glossary
for Indian businesses
The Ultimate HR Glossary
Easy-to-grasp definitions for claims, coverage, and policy terms.
Abilene paradoxWhen a group agrees on a decision no one actually wants, because each member assumes the others do.People
AbscondingWhen an employee leaves work without notice or formal resignation.Compliance
AbsenteeismRules outlining how unplanned absences are tracked and managed.Compliance
Appointment letterOfficial document confirming joining details, role, and conditions of employment.Hiring
AppraisalPeriodic review of employee performance, growth, and pay revision.People
ApprenticeshipStructured on-the-job training for new entrants to learn a trade or skill.Hiring
Basic salaryFixed core component of pay, before allowances and bonuses.Payroll
Bereavement leavePaid time off taken after the death of a close family member.Leave
BonusExtra pay over salary, given for performance, festivals, or milestones.Payroll
Buddy SystemPairing a new hire with an experienced colleague to help them settle in.People
Employee engagementThe level of commitment, motivation, and connection employees feel toward their work and organisation.People
Employee net promoter scoreMetric showing how likely employees are to recommend their workplace.People
Employee Provident FundMetric showing how likely employees are to recommend their workplace.People
Employment basicsCore legal terms and conditions governing an employment relationship.Compliance
Enterprise resource planningSoftware that integrates HR, finance, and operations into one system.People
EquityOwnership stake offered to employees, usually as shares or stock options.Payroll
Facilitative leadershipLeadership style that empowers teams to reach their own solutions rather than issuing direct instructions.People
Factories ActIndian law regulating working conditions, safety, and welfare of factory workers.Compliance
Financial yearTwelve-month period used for accounting, taxation, and statutory reporting in India.Compliance
Hiring strategyA company’s plan for attracting, sourcing, and recruiting the right talent.Hiring
House rent allowanceSalary component paid to employees to cover rented accommodation costs.Payroll
Human Resource Management System (HRMS)Software that manages payroll, attendance, leave, and employee records in one place.People
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