CH 2: Strategic HR Management Flashcards
Strategy
A plan an organization follows for how to compete successfully, survive, and grow.
Strategic Planning
The process of defining organizational strategy, or direction, and allocating resources toward its achievement.
HR strategic planning process involves what several sequential steps?
- Organizational Mission
- SWOT Analysis
- Establish Goals and Objectives
- Formulate Organizational Strategy
- Formulate Supporting Functional Strategies
- Implement
- Evaluate and Reasses
Organizational Mission
The core reason for the existence of the organization and what makes it unique.
Strategic HR Management
The appropriate use of HR management practices to gain or keep a competitive advantage.
Multinational Corporation (MNC)
An organization that has facilities and other assests in at least one country other than its home country.
Offshoring
A company’s relocation of a business process or operation from one country to another.
Human Resource Planning
The process of analyzing and identifying the need for and availability of people so that the organization can meet its strategic objectives.
Environmental Scanning
The assessment of external and internal environmental conditions that affect the organization.
Succession Planning
The process of identifying a plan for the orderly replacement of key employees.
Forecasting
Using information from the past and present to predict future conditions.
Severance Benefits
Temporary payments made to laid-off employees to ease the financial burden of unemployment.
Outsourcing
Transferring the management and performance of a business function to an external service provider.
Alternate Work Arrangements
Nontraditional schedules that provide flexibility to employees.
Due Diligence
A Comprehensive assessment of all aspects of the business being acquires.
Effectiveness
The ability of a program, project, or task to produce a specific desired effect or result that can be measured.
Efficiency
The degree to which operations are carried out in an economical manner.
HR Metrics
Specific measures of HR practices.
HR Analytics
An evidence-based approach to making HR decisions on the basis of quantitative tools and models.
Benchmarking
The process of comparing an organization’s business results to industry standards or best practices.
Balanced Scorecard
A framework orfanizations use to report on a diverse set of performance measures.
Return on Investment (ROI)
Calculation showing the value of investments in human capital.
Human Capital Value Added (HCVA)
Calculated by subtracting all operating expenses except labor expenses from revenue and dividing by the total full-time head count.
Human Capital Return On Investment (HCROI)
Directly shows the amount of profit derived from investments in labor.
Human Economic Value Added (HEVA)
Wealth created per employee
HR Audit
A formal research effort to assess the current state of an organization’s HR practices.
