F

Factor Comparison Method

A job evaluation method that involves ranking jobs in terms of each compensable factor and then pricing the job based on the rankings in relation to known wage rates for benchmark jobs.

Fair Credit Reporting Act (1970)

An act that regulates the process of obtaining and using credit and other types of information on employees.

Fair Labor Standards Act (1938)

The major federal legislation covering compensation; the act covers minimum wage, overtime, child labor provisions, and equal pay.

Family and Medical Leave Act (1993)

Generally referred to as FMLA, the legislation provides for up to 12 weeks of unpaid leave for birth or adoption of a child, for care for an immediate family member experiencing a serious health condition, and for recuperation of the employee from a serious health condition.

Faragher v. City of Boca Raton (1998)

The Supreme Court ruling that establishes the basis for employer affirmative defense.

Federal Mediation and Conciliation Service (FMCS)

A federal agency created by the Taft-Hartley Act. FMCS is responsible for assisting in the resolution of contract-bargaining disputes.

Federal Labor Relations Authority (FLRA)

A federal agency created by the Civil Service Reform Act of 1978 to administer its provisions.

Fee-for-Service Plan

The traditional health insurance indemnity plan incorporating deductibles and coinsurance. This type of plan provides maximum flexibility, but typically costs more.

Fiedler’s Contingency Theory

A theory of leadership that proposes leadership effectiveness is based on a match between the leader’s leadership style and the contingencies of the workplace.

Financial Accounting Standards Board (FASB)

A private entity that derives its authority from the federal Security and Exchange Commission, which issues rules to be followed by the accounting profession as to how certain transactions are to be recorded and how financial information is to be reported to stockholders and the public.

Financial Management

Those activities designed to account for and control the organization’s resources so that it can achieve its goals and objectives.

Financial Ratios

The statistical measures used to evaluate the financial performance of the organization, especially in relationship to other organizations in its particular industry.

Fitness for Duty Examination

A medical examination required by the employer to determine whether the employee is physically or mentally able to perform the essential functions of the job.

Force Field Analysis

A model of organizational change that proposes organizations can be modified by altering the equilibrium of change-driving and change-resisting forces.

Forecasts

An outcome of the environmental-scanning process that attempts to predict how a particular measure will change in the future.

Formalization

The extent to which work assignments in an organization are standardized.

Formula Budget

A type of incremental budgeting in which a specific percentage increase (or, less likely, decrease) is applied to the whole budget.

Function

With respect to organization design and structure, the grouping together of jobs that perform similar work, require similar skills, and produce similar specific products or services.

Fundamental Accounting Equation

Assets = Liabilities + Owners’ Equity