Ch 2 - Janine *done*

Question 1

Strategic HRM (Def)

Answer 1

The interrelated philosophies, policies, and practices that facilitate the attainment of organizational strategy.

Question 2

HRM can be viewed as an umbrella term for all the following:

Answer 2

HR philosophies that inform organization’s policies and practices;
HR policies that direct and constrain the development of specific practices;
Specific HR practices.

Question 3

Resource Based View (def)

Answer 3

The theory that suggests that management of resources and capabilities will lead to competitive advantage resulting in superior performance and value.

Question 4

Resource Based View Criteria for Competitive Advantage

Answer 4

1. Employees who have superior performance because of skills, commitment, or flexibility are valuable.
2. The “exact recipe” of HR systems (training, compensation, performance, appraisal, and culture) is difficult for competitors to imitate.
3. Quality talent is rare.
4. HR department that develops a system that will facilitate and stimulate innovative thinking processes are hard to substitute.

Question 5

Resource Based View Typical Resources

Answer 5

HR, Proprietary knowledge, Reputation.

Question 6

Resource Based View Typical Capabilities

Answer 6

Adaptability, Flexibility, Speed of bringing new products to market.

Question 7

The Contingency Perspective

Answer 7

Businesses that implement a low-cost strategy may not benefit as much from high-performance HR practices as businesses that follow other strategies. IE. Each type of strategy requires different HR practices to shape the type of human capital and employee behaviours.

Question 8

Human Capital Theory (def)

Answer 8

The sum of employees’ knowledge, skills, experience, and commitment invested in the organization. This is one of the three types of resources (Land, Capital, Labour) that economists view firms have control over.

Question 9

Human Capital Includes

Answer 9

Knowledge
Education
Vocational qualifications
Professional certifications,
Work-related Experience
Competence of employee

Question 10

What are the investment costs in human capital?

Answer 10

Training, motivating, compensating, and monitoring.

Question 11

Equation for estimating human capital investment

Answer 11

Total revenue - (operating expenses - total compensation cots) / Total compensation costs
ie. ea dollar a company invests generates this number in return.

Question 12

Behavioural Theory (def)

Answer 12

Different stages require not only different human capital, but also different behaviour of employees because behaviour of employees effects organizational outcomes.

Question 13

In behavioural theory, where should HR focus their practices?

Answer 13

Behaviour objective practices such as employee involvement, participation in decision making, voice and grievances, performance feedback, teamwork, and job enrichment. Ie. development of innovation, speed, and accountability behaviours.

Question 14

HR offeres a competitive advantage when:

Answer 14

Orgs manage HR strategically and are matched with the org’s strategy.

Question 15

How can HRM improve an organization’s performance goals?

Answer 15

By:
Aligning all HR strategies with overall strategies;
Focusing employees behaviours on org mission and goals;
Developing HR practices that support and improve org’s strategy implementation

Question 16

The Risks associated with HR Planning

Answer 16

The costs associated:
time and energy in making decisions
potential informatory overload 
impossible commitments to employees
over-concern with employee reactions
potential job loss
myopia developed from commitment to one strategy
inability to see and adapt to changes in environment

Question 17

Ways that organizations can align HR strategy with business strategy

Answer 17

1. Start with org strategy then create HR strategy
2. Start with HR competencies the craft corporate strategies
3. Do a combo of both in reciprocal relationship.

Question 18

A traditional view of strategy alignment

Answer 18

Corporate strategy leads to HR strategy.

ie. low-cost strategy needs low-cost labour strategy.

Question 19

Current view of strategy alignment

Answer 19

organizations can’t implement a strategy if it doesn’t have the human capital. Small businesses are in tune with this view.

Question 20

HR Competencies lead to

Answer 20

Business strategies.

Skills determine strategy but may lead to over-reliance on employee capabilities instead of environmental analysis.

Question 21

Labour Hording

Answer 21

An unusual North American strategy where key employees are retained during economic downturn. Retains human capital.

Question 22

HR becomes a business partner when

Answer 22

HR professionals by applying their financial, forecasting, problem solving and entrepreneurial skills play a more strategic role.

Question 23

Characteristics of an effective HRM strategy

Answer 23

External fit - HR and org strategies are aligned
Internal fit - HR programs are linked with other functional areas
Focus on results - measured and tracked.

Question 24

Before any HR program what needs to be introduced?

Answer 24

Development of this chain:

HR program –> employee human capital and behviours –> org strategy –> org outcome.