3 - Organization: Structure of HR (From Study Group) Flashcards
1
Q
HR’s Strategic Role in the Organization
A
- Participate in creating organization’s strategy
- Align HR strategy with organization’s strategy
- Support other functions in their strategic roles
2
Q
HR’s Administrative Roles
A
- Use technology to capture and analyze data, reduce transactional time
- Focus on core capabilities
3
Q
HR’s Operational Roles
A
- Knowledge management
- Talent acquisition and development
- Incentive systems
- Employee engagement programs
4
Q
Developing an HR Service Culture
A
All aspects of the HR function must be examined:
- Strategy, how HR will create value for the organization
- Shared values, how a commitment to service is communicated
- Structure, how HR can be more efficient and innovative
- Systems, what tools are needed
- Staff, what performance will be rewarded
- Skills, what capabilities are needed to deliver service
- Style of leadership, how leaders model customer service values
5
Q
Core Business Functions
A
6
Q
Executive Management
A
The C-suite is ultimately responsible for all of the core business functions and their effect on the organization’s performance.
- Develop and communicate strategy.
- Monitor and control implementation of strategic and operational activities through control of financial resources.
- Be the primary interface with the organization’s stakeholders.
- Lead the organization through a shared vision and the values they model.
7
Q
Finance
A
- Supports operations and strategic initiatives through the creation and monitoring of operating and capital expenditure budgets.
- Provides financial analysis used in strategic planning.
- Manages the organization’s “treasury.”
8
Q
Accounting
A
Focuses on tracking financial transactions and reporting financial information to finance and to external stakeholders.
9
Q
Marketing Strategies
A
- “Push” - getting products/services in front of customers.
- “Pull” - attracting customers to the product.
10
Q
Sales Strategies
A
- Heavily influenced by an industry’s customary distribution practices and the company’s marketing strategy.
- Affects HR needs, including talent acquisition and compensation.
11
Q
Research and Development
(R&D)
A
- Generates future revenue through new product design and development.
- May be conducted in a centralized manner (for example, with a globalized strategy) or implemented in business units so that projects stay focused on customer needs.
12
Q
Operations
A
- Develops, produces, and distributes products/ services.
- Concerned with efficient use of resources, quality, environmental impact, worker health and safety.
- Requires complex logistics and sophisticated planning.
13
Q
IT
A
- Manages storage, access, exchange, and analysis of organizational data through hardware and software systems.
- Supports integration of data across enterprise through ERPs.
- Maintains security and reliability of data.
14
Q
HR Team
A
- Leaders
- Managers
- Specialist
- Generalists
- HR Business Partners
15
Q
Centralized
A
- All HR personnel are located within the HR department.
- Headquarters makes all HR policy and strategy decisions and coordinates all HR activities and programs.
- Helps ensures standardized HR policies and processes.
- Creates efficiencies in delivery of services.
16
Q
Decentralized
A
- Each part of the organization controls its own HR issues.
- Strategy and policy may still be made at headquarters, but HR staff within each function, business unit, or location carries out the required activities.
17
Q
Functional
A
- Headquarters HR specialists craft policies.
- HR generalists (e.g., located within divisions or other locales) implement these policies, adapt them as needed, and interact with employees.
18
Q
Dedicated
A
- HR function at headquarters and separate HR functions located (or “embedded”) in separate business units.
- Corporate HR articulates basic HR values, develops tools to be used by the organizational-level HR functions, and creates programs (e.g., global literacy and leadership skills).
- Business unit HR staff develops local policies and practices
19
Q
Shared Services
A
- Centers with specific areas of expertise develop HR policies in those areas and then offer the service to all units.
- Frequently used in organizations with multiple business units.
- Units select what they need from a menu of shared services (usually transactional).
20
Q
Third-Party Contractors
A
Successful outsourcing/cosourcing depends on:
- Choosing the right activities to outsource/cosource.
- Alignment of vendor’s performance objectives with strategic requirements.
- Confirmation of vendor’s reliability, capacity, expertise, and ethical behavior.
21
Q
Outsourcing Process
A
- Analyze needs and define goals
- Define budget
- Create RFP
- Send RFPs to chosen contractors
- Evaluate proposals
- Choose contractor
- Negotiate contract
- Implement project and monitor schedule
- Evaluate project
22
Q
Demonstrating HR’s Value
A
Benefits of measuring and reporting results include:
- Reinforcing HR’s role in strategic development by measuring the effectiveness of HR strategies and senior management’s implementation of those strategies.
- Identifying opportunities for redirection and improvement through periodic measurement of progress on strategic objectives.
- Strengthening HR’s relationship with internal business partners.
- Supporting future investment in HR programs.
23
Q
Evaluating HR Performance
A
Balanced scorecards help support clear line of sight from strategic goals to strategic performance.
Effective balanced scorecards:
- Contain accountability and measurable results.
- Are valid (e.g., understandable measures, metrics, and targets that are aligned to an objective and supported by solid data).
- Contain only measures that are most important to the objective and the organization’s strategic plan (e.g., measures must result in actionable items).
- Focus on results.
- Are carefully planned and executed.
24
Q
HR Metrics
A
- Absence rate
- Accruals
- Applicant yield ratio
- Cost per hire
- Human capital return on investment
- Human capital value added
- Key talent retention
- Promotion pattern
- Success ratio
- Training return on investment
- Transfer
- Turnover costs
- Turnover ate
- Vacancy costs
25
Q
HR Audits
A
- Compliance
- Best Practice
- Strategic
- Function-Specific
26
Q
HR Audit Process
A
- Determine scope and audit type
- Develop audit questionnaire
- Collect data
- Benchmark findings
- provide results feedback
- Develop action plans
- Foster continuous improvement
