A skills matrix is basically what it sounds like, a grid showing skills with a grading scale to determine what level the employee is at. Normally, the skills list would be specific to a certain part of the business, with some generic skills included for global comparison purposes. One of the biggest HR management problems associated with a skills matrix is the interpretation of the ratings system and dealing with subsequent irregularities. These irregularities can then cause misleading reports to be produced. A skills matrix though can be an excellent HR management tool if administered properly.

Succession planning is used for a number of HR management development reasons. Primarily HR management uses it to ensure that a replacement incumbent is available from within the organisation should a position become vacant. The other reason HR management uses it is to direct an employee's training and development within the organisation. For instance, if an employee shows the correct aptitude for a different position and openly expresses their desire to eventually occupy that position, HR management can focus the employee's development toward that role. The benefits are two-fold. The company has an immediate successor for that position, should it suddenly become vacant and, the employee can see a development path for their immediate future.

This is a very delicate HR management process involving the full documentation of all incidents leading up to the need to terminate the employee's employment. If industrial relations are involved HR management must be able to prove that termination was fair and reasonable to win their case. Once again, it is very important that employment agreements and procedures contain as much information as possible about terminatable offences to cover the employer against subsequent allegations of unfair dismissal.

Term used to describe the actual cost of employing an employee. This can include the cost of their office, equipment used, development costs, etc.

This term describes a grouping of management development courses or steps to achieve very particular skills or qualifications. It could involve several courses on the same subject, but with differing skill levels being attained upon the completion of each e.g. introductory, advanced etc. Many HR management development plans will have "fast track" developmental processes to rapidly promote the most able of graduate intake.