Business Acumen Flashcards
Balance Sheet
Presents the company’s assets, liabilities, and shareholders’ equity during a specific period in time.
HR Context - HR indirectly effects the Balance Sheet:
- Salaries & benefit costs affect Net Income, influencing Retained Earnings.
- Employee Training & development affect intangible assets and long-term performance.
Employee turnover costs - affect operating expenses and net income.
- Accrued vacation or bonuses are a liability on the balance sheet.
Income Statement
a financial document that shows a company’s revenues and expenses during a specific period.
HR Context:
- Salaries & benefits affect operating expenses
- Efficiency and effectiveness of training & development, talent acquisition, etc. can all show up on the income statement.
Cash Flow Statement
Statement showing the cash inflows and outflows during a specific period of time.
HR Context:
- Operating Activities
- Investing Activities
- Financial Activities
Effective HR management can positively impact cash flows by optimizing workforce efficiency, managing turnover costs, and strategically investing in employee development.
Balanced Scorecard Framework
A valuable tool for measuring HR performance and its alignment with overall organizational goals. Helps organizations align their activities with their vision and strategy.
- Financial - Cost Efficiency (cost per hire), and Return on Investment (ROI)
- Customer Perspective - Employee Satisfaction & Service Quality
- Internal Processes - Time-to-Fill, Employee Retention/Turnover
- Learning & Growth - Participation and progress in skills growth
Key Performance Indicators (KPIs)
Quantifiable measures that evaluate performance. Provide a way to track progress, assess effectiveness, and make informed decisions.
HR Context - Time-to-Hire, Absenteeism Rate, Benefit Utilization Rate, Employee Net Promotor Score, etc, etc.
HR Compliance Risks in new markets
- Labor laws
- Industry regulations
- Legal
- Reputational
HR Strategic Risks in new markets
- New markets
- Talent acquisition
HR Operational Risks in new markets
- Inefficiencies
- Timely pay
- Employee records
Benefits of SWOT Analysis
Internal: Strengths, Weaknesses
External: Opportunities & Threats
Helps employees make informed decisions and develop strategic effective strategies.
DEI
Diversity, Equity & Inclusion
Ethical Implications of A.I.
Security risks, accountability & liability, job displacement
Innovation Labs
Dedicated spaces or teams where employees can collaborate, explore innovative concepts, and test prototypes.
Context - Contributes to idea generation and cross-functional collaboration.
Hackathons
Events where individuals, often from diverse backgrounds and skill sets, come together to collaboratively work on solving problems or developing innovative solutions, typically within a short timeframe
Context - Intense, rapid, diverse product development acceleration.
Scenario Planning
preparing for and responding to potential future events, changes, or challenges that may impact the workforce and the organization as a whole.
HR Context - enables HR to proactively address challenges, seize opportunities, and contribute to the organization’s resilience and long-term success.
Cost-Benefit Analysis (CBA)
- Identify all costs (salaries, software, etc.) Consider opportunity costs, legal implications and other hidden costs.
- Quantify benefits (turning qualitative factors into monetary value)
