Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

SHRM-CP > Business Acumen > Flashcards

Business Acumen Flashcards

1
Q

Value chain & its primary activities

A

aka “business model”
process by which an organization creates the product or service it offers to the customer.

R&D–>Operations–>Marketing/Sales–>Fulfillment–>Customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is HR’s key contribution to value chain?

A

Quality and availability of talent pool

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Global value chain

A

Multiple organizations producing parts of a good or service across geographical regions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

HR and Organizational/Product Life Cycle: Introduction

Characteristics

How HR can help

A

Revenue is low because of little market awareness and market resistance to change. The new industry/product/organization must create an identity with customers and develop a value proposition.

Characteristics: little structure; vision, innovation, and energy critical

HR: talent acquisition, culture creation in line with founder’s ideals, EL compliance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

HR and Organizational/Product Life Cycle: Growth

Characteristics

How HR can help

A

As time proceeds (the horizontal axis), revenue begins to increase.

Characteristics: awareness of market trends, strategic discipline of managers to stay on track, demands for innovation

HR: buildup of talent, helping leaders redefine their roles, change management, job descriptions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

HR and Organizational/Product Life Cycle: Maturity

Characteristics

How HR can help

A

market is saturated with competitors and growth occurs only through introduction of new products or customer groups

Characteristics: need for greater control leads to formalization of decision making

HR: retaining workforce, succession planning for strong leadership, improving communication, maintaining culture of workplace

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

HR and Organizational/Product Life Cycle: Renewal

Characteristics

How HR can help

A

Organization changes offerings, where/how they compete. If they succeed, revenues rise.

Characteristics: attempts to re-engage with customers, re-envision product, restructure company if necessary

HR: changes in leadership, RIF to right-size, streamlining of policies and job descriptions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

HR and Organizational/Product Life Cycle: No Growth

Characteristics

How HR can help

A

Organization takes no action and accepts continued low revenue.

Characteristics: company is static in compensation, revenue. Few opportunities for EE advancement

HR: maintain engaged workforce and deliver HR with fewer resources; deal with increased turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

HR and Organizational/Product Life Cycle: Decline

Characteristics

How HR can help

A

Characteristics: org shrinks in size, return to more autocratic control

HR: manage RIF, help remaining EEs cope with stress, attract new talent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Macroenvironment

A

all the factors that exist outside the organization that could influence an organization’s strategic decisions

Examples: industry/market conditions, events/trends in society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Porter’s Five Forces - definition

A

Every industry and its members face similar competitive challenges that affect the business model or how it will create value.

Diagram: 4 forces (bargaining power of buyers/suppliers, and threat of entry/substitution) all point inward toward 5th force: “rivalry among competitors”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Porter’s Five Forces - Threat of Substitution

A

Competitor taking customers with similar product

HR must focus on cost efficiency (price war) or entrepreneurialism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Porter’s Five Forces - Threat of Entry

A

New competitor entering industry

HR must allow for rapid decision making/response if this were to happen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Porter’s Five Forces - Bargaining power of suppliers

A

Assesses the threat that suppliers could have on an industry - for ex.: what if a main supplier went out of business or was bought by a competitor?

If their bargaining power is high, HR must make sure JDs include training for negotiation, managing risks, ethical practice, relationship management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Porter’s Five Forces - Bargaining power of buyers

A

How vulnerable are organizations to actions by customers looking for the lowest price or large customers who can greatly affect sales and revenue

HR should align compensation practices to encourage marketing/sales to support these clients.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Porter’s Five Forces - Rivalry among existing competitors.

A

All of the other forces have the potential to increase the intensity of competition within the industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Business Intelligence

A

The ability to see how the whole organization and its parts are performing (through business metrics) and to make sound business decisions that are grounded in relevant rather than assumptions or “gut feelings.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

3 main components of business intelligence

A

Data gathering
Data warehousing
Query and reporting capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Dashboard analytics

A

Focus on current data that measures performance in key areas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Advanced analytics

A

use historical and current data to get a better sense of the future and even to shape the future.

Can also take advantage of machine learning, the ability of an information system to make its own decisions based on the data it is receiving.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Enterprise resource planning (ERP) system

A

Integrates current data from across an organization’s functional areas, while a stand-alone system would require a customized bridge to access the ERP database.

Allows for shared, current database across all departments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Incremental (line-item) budget

A

The previous year’s budget determines the current year’s budget. Additional funds are requested as needed.

Function leaders are told that they may increase/decrease by a certain percentage. This is less time-consuming, but it does not recognize changes in business that could affect spending.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Zero-based budget

A

Budget starts at 0 - no funds promised. All objectives are given a ranking, and then available funds are given out in order.

Ex. A department would need to justify its entire budget and show how its funding helps the organization meet its goals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Activity based budget

A

Funding allocated based on strategic significance of activity

Mentality is “how much does it cost to perform these important activities” vs. “how do we divide up this predetermined sum of money”

Ex. An organization asks functions what resources they will need to produce specific outputs or levels. More resources are transferred from lower-priority areas or areas with excess capacity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Formula based budget

A

Different business units receive different percentages of the budget.

General funding changed by specific amount and different business units’ budgets are adjusted proportionally.

Ex. A government agency could experience a system-wide 5% budget decrease, which would be spread among its units according to different percentages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Capital costs

A

one-time investments in physical assets such as buildings, land, equipment, software.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What does HR budget include?

A

Ongoing operational costs - directly related to staffing and expenses

One-time project costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is first thing HR should do in redoing strategic budget?

A

Compare previous/current activities and budget allocations with what will be needed to support the proposed organizational strategy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is included in a business case?

A

Statement of need. This is the condition or change impelling the function’s action.

Recommended solution.

Risks and opportunities

Estimated costs and timeframe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Balance sheet

A

statement of the organization’s financial position—its assets, liabilities, and equity—at a particular time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Balance sheet formula

A 
Assets = Liability + Equity
Assets = what you own
Liability = what you owe
Equity = what you owe to owners/shareholders
32
Q

Income statement

A

indicates an organization’s net income, which is often referred to as the “bottom line” and provides key information about the organization’s performance.

Also known as P & L (profit and loss)

33
Q

Net income equation

A

Net income = Revenues – Expenses

34
Q

SWOT Analysis

A

Strengths, Weaknesses, Opportunities, Threats - agree on a numerical value for each

Strengths and weaknesses: come from internal environment
Opportunities and threats: come from external environment

35
Q

Multi-criteria decision analysis (MCDA)

A

For any initiative, a team determines critical characteristics/elements for it to be successful, as well as alternatives to that element.

Matrix created to assign a point rating to each alternative, and from there prioritize results.

36
Q

Cost benefit analysis (CBA)

A

Group discussion is critical to identifying all relevant costs and benefits.

Create a benefit/cost ratio (divide) for each idea, and selecting highest

37
Q

Force-field analysis

A

identifies and weights factors that could influence an outcome in either a negative or positive manner according to their possible impact. The group then uses these factors to score different opportunities.

group can decide to pursue opportunities with scores showing favorability for change or avoid changes that face very strong resistance.

Diagram: planned change/opportunity in the middle, forces for/against change are on left/right side and assigned a point value.

38
Q

Critical evaluation - definition and what it includes

A

refers to examining an idea, a process, or an event with an open, objective, and inquiring mind.

Includes: data advocacy
data gathering
data analysis
evidence-based decision making (EBDM)

39
Q

Steps in Evidence-based Decision Making

A

Ask - phrase the problem as a question
Acquire - gather info from varied sources
Appraise - determine validity, reliability
Aggregate - combine and organize
Apply - use data to draw conclusions
Assess - monitor implemented solution

40
Q

How to become an HR Data Advocate

A

Gather data on continuous basis
Use evidence when communicating with stakeholders
Institutionalize the competency in the HR function

Ensure all HR activities are measured!!

41
Q

Interviews as Data Source

A

Positives:
Rarely sole form of gathering data
Useful to ID topics to use in surveys/focus groups
Confidential environment, intimate conversation
Opportunities for follow-up questions

Negatives:
Can be time consuming
Require consistency and vigilance to avoid bias

42
Q

Focus Groups as a Data Source - Pro/Con

A

Positives:
Need to have skilled facilitator
Provides flexible format
Allow for group brainstorming and decision making

Negatives:
Can be difficult to control
Data can be less reliable if participants don’t contribute equally/are not included equally

43
Q

Mind mapping and affinity diagramming

A

Focus group technique
Mind mapping begins with generating core ideas (sometimes generated w/ sticky notes)

followed by Affinity diagramming - group categorizes and subcategorizes the ideas found in mind mapping to make connections

44
Q

Nominal group technique

A

Group goes around suggesting ideas until there are no new ideas. Then use process of elimination and agree on remaining items.

Ex. employee council

45
Q

Delphi technique

A

Meant to avoid groupthink - performed individually but anonymously and is therefore not performed face to face.
Participants anonymously suggest ideas and then build off of previous ideas

46
Q

Surveys as Data Source

A

Positive: efficient way to gather data from large group
Easier to quantify data for analysis

Negative: Can be difficult to obtain response rate
Relies on self reporting
Difficult to follow up on

47
Q

Observation as Data Source

A

Positives: Provides firsthand and immediate data rather than self-reported data
Is time-efficient for subjects.

Negatives: Requires skill to be unseen, remove personal bias, experience noting significant behaviors

48
Q

Existing Data as Data Source

A

Positives: Eliminates the effects of observation and involvement and possible bias of facilitator
Rich, multi-perspective source of data

Negatives: Can be time-intensive
Requires experience to extract key data
May require ingenuity to find data

49
Q

Artifacts as Data Source

A

Positives: Provides additional insight into cultural issues
Can be observed without the help of those being observed

Negatives: Requires researcher to understand the principles of culture
Can create misunderstandings if the researcher is not familiar with the culture

50
Q

Reliability

A

ability of an instrument or tool to provide consistent results

Ex. all testing is done at the same time with the same questions each day

51
Q

Validity

A

ability of an instrument to measure intended attributes

ex. A checklist used to rate suppliers’ proposals results in selection of suppliers who meet expectations

52
Q

Statistical sampling

A

Used when sample size is very large or data cannot be obtained from the entire population.

Sample must be representative- it must accurately reflect the key characteristics of the entire population being studied.

53
Q

Sampling bias

A

a sample may not represent an entire population

Ex.: a sample contains a higher proportion of older workers than what truly exists in the organization

54
Q

Selection bias

A

Participants are not randomly assigned to control/variable groups, or only certain types of participants are selected

Ex.: only enrolling high performing employees in a study

55
Q

Response bias

A

A representative group of participants is invited to a study, but the participants who volunteer are not representative.

ex. all employees are sent a survey, but only young parents respond

56
Q

Performance bias

A

people know they are being watched so they perform differently

Ex. measuring the effect of factory conditions on worker productivity, and team only increases in productivity due to the design of the experiment. The workers appreciated the increased attention to their welfare.

57
Q

Measurement bias

A

Raters are measuring incorrectly whether due to lack of training or personal bias

58
Q

Weighted average (mean)

A

takes into consideration how frequently each number comes up

used when some data in the dataset have more significance or effect than other data.

Useful where there are significant outliers in the spread of data

HR could use weighting in assessing job candidates when some of the requirements—like certain degrees or credentials—are considered to be more important than others

59
Q

Unweighted average

A

All values added together

useful when all the values are relatively close together and when they represent volume, as opposed to numerical order or numerical preference

60
Q

Frequency distributions

A

Used to sort data into groups according to some factor, such as years of employment.

61
Q

Quartiles and percentiles

A

describe dispersion across a group of ranked data. Quartiles divide a data set into quarters. A percentile indicates the proportion of the dataset at a certain percentage.

62
Q

Interquartile Range

A

The interquartile range applies the concept of quartiles to measures of central tendency. It includes all of the data values in Q2 and Q3,
OR
25% of the values above the midpoint and 25% of the values below the midpoint.

used to indicate a range of confidence in an estimate.

63
Q

Standard Deviation

A

represents the distance of any data point from the center of a distribution when data is distributed in a “normal” or expected pattern (often shown as a bell curve)

64
Q

Variance analysis

A

identifies the degree of difference between planned and actual performance

Usually used for objective baselines like schedules and budgets

Once the variance is identified, would want to use another data analysis tool to understand the variance

65
Q

Ratio analysis

A

comparing the change in a ratio over time - yields a percentage

turnover rate (comparing the number of terminations or resignations in a time period with the average number of employees in that period).

66
Q

Trend analysis

A

examines data from different points in time to determine if a variance is an isolated event or if it is part of a longer trend

Trend analyses are important tools in discovering recurring peaks or troughs in an activity.

67
Q

Regression analysis

A

used to determine whether a relationship exists between variables and the strength of the relationship.

Data points are plotted on a scattergram - shape of the line formed by the data suggests if there is a correlation

might help determine the most significant indicators of success in a given job, testing variables such as recruitment source, education, job experience, personality type, and so on against job performance ratings.

68
Q

Scenario analysis / “what if” analysis

A

The outcome of a particular situation is projected, using different inputs to see what changes have the most profound effects. This analysis is greatly aided with software applications and models.

This can be helpful when analysts fear that historical patterns may not hold in the future.

69
Q

Root cause analysis

A

Start at the end with what actually happened, and keep asking “why” to get back to the root cause

70
Q

Pie chart usage

A

High level information about data distribution

71
Q

Histogram

A

Bar graph

Shows data as relative sizes, supports rapid comparison

72
Q

Trend diagram

A

plots data points over time, connect points to show tend

Plots data points on two axes. The horizontal axis usually represents time, while the vertical axis represents volume.

73
Q

Pareto principle

A

80% of problems come from 20% of causes

Looks like a fish - one end goes up while other goes down - always adds up to 100%

74
Q

Scatter diagram

A

Plots data points against variables. Used to show relationships between two variables (regression analysis)

75
Q

Online analytical processing (OLAP)

A

Allows the analyst to sort data quickly in different ways, according to different and multiple variables.

SHRM-CP (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions