Shield Grounding
This is connecting the braided shield around an analogue signal cable to the reference point at one end only. On the GS740-3P the shield is connected to the green wire that carries the potentiometer GND. Connecting the shield at both ends can cause current to circulate between chassis points and corrupt the signal even further.
The shield's job is to isolate the weak signal inside the cable from electromagnetic interference coming from outside. To be able to do that, the shield must be connected to a reference; the noise it collects drains away by that path.
The reason for the single-end rule is this: there is always a small voltage difference between two different chassis points on a vehicle or a machine. If the shield is connected at both ends, this difference drives a current through the shield; the resulting current comes back as interference on the very signal you wanted to protect. For this reason the shield is connected at a single point on the control side, and the other end is insulated and left free.
In practice, watch three points: do not run the signal cable in the same bundle as power cables, do not leave the shield braid bare at the end, and if the distance between the cab and the engine is long, do not leave the cable excessively long and coiled. These three precautions eliminate most complaints of unstable speed originating from the potentiometer before they start.
Context in which this term is used: Electronic speed and throttle control on a diesel engine