Adaptation (to the organization)- the process by which new employees learn the values of
and what it’s like to work for a hospitality organization during initial on-job experiences.
Orientation- the process of providing basic information about the hospitality organization that
must be known by all staff members in every department.
Mission statement- a strategic statement that indicates (provides an overview of) what the
hospitality organization wants to accomplish and how it intends to do so.
Orientation kit- a package of written materials given to new employees to supplement the oral
information provided during the orientation session.
Induction- the process of providing new employees with basic information that everyone in their
department must know that is unique to their department.
Mentoring- a formal or informal relationship in which an experienced staff member provides
advice and counsel to a less-experienced staff member.
Career ladder- a progression of increasingly more responsible positions within an organization
Cross-functional team- a group of staff members comprising representatives from different
departments (functional areas) that address a common concern.
Ethics- a set of rules or principles that define what is right and what is wrong as decisions are
made that affect others.
Business ethics- refers to the practice of ethical judgment by managers as they make
decisions affecting the organization.
Behavior ethical- actions in concert with generally accepted social concerns relating to the
impact of decisions on others.
Behavior unethical- actions not in concert with generally accepted social concerns relating to
the impact of decisions on others.
Code of ethics- a statement used by a hospitality organization to outline broad concepts to
guide ethical decision making.
Corporate (social) responsibility- relates to an organization’s efforts to address its
commitments to all of its constituencies, including guests, employees, other businesses
including suppliers, investors, and society, and the community-at-large.
Stakeholders- groups, individuals, and organizations that are affected by an organization; also
Publicity- free-of-charge information in the media that attracts attention to an organization. CHAPTER 8:
Compensation- the amount of money and other items of value (e.g. benefits, bonuses, perks)
given in exchange for work performed.
Compensation package- the sum total of the money and other valuable items given in
exchange for work performed.
Extrinsic rewards- financial, as well as nonfinancial, compensation granted to a worker by
others (usually the employer).
Intrinsic rewards- Self-initiated compensation (e.g., pride in one’s work, a sense of
professional accomplishment, or enjoying being part of a work team).
Compensation management- the process of administrating an organization’s extrinsic and
intrinsic reward system.
Pay range- the lower and upper limit of hourly wages or salary paid for a specific job. For
example, the pay range for an entry-level room attendant in a hotel may be between $7.50 and
$8.50 per hour to start.
Local wage rate- the prevailing pay range for distinct job categories in a specific community or
Salary survey- a comprehensive review of local wage rates and pay ranges paid for one or
more individual job categories (e.g., the average local wage rate, or range, paid to hotel
bartenders, room attendants, or groundskeepers).
Merit pay system- a compensation program that links increases in pay to measurable job
performance. Under such a system, those workers who perform better receive proportionally
larger percentage pay increases.
Minimum wage- the least amount of wages that employees covered by the FLSA or state law
may be paid by their employers.
Living wage- the minimum hourly wage necessary for a person to achieve some subjectively
defined standard of living. In the context of developed countries such as the United States, this
standard is generally considered to require that a person working 40 hours per week, with no
additional income, should be able to afford a specified quality or quantity of housing, food,
utilities, transportation, and health care
Salary- pay calculated on a weekly, monthly, or annual basis rather than at an hourly rate.
Exempt (employee)- an employee who is not subject to the minimum wage or overtime
provisions of the Fair Labor Standards (FLSA).
Nonexempt (employee)- an employee who is subject to the minimum wage or overtime
provisions of the Fair Labor Standards (FLSA). Hourly wages- money paid or received for work performed during