(Chapter 1) Business Strategy & Ethics Flashcards
1
Q
What federal act mandates employee safety?
A
Occupational Safety and Health Act of 1970 (OSHA)
2
Q
The HR function that strengthens the employer-employee relationship through measuring job satisfaction, maintaining employee engagement, and resolving workplace conflicts or grievances
A
Employee Relations
3
Q
Which HR professionals have a broad range of responsibilities in one or more of the HR functional areas?
A
HR generalists, HR managers, HR business partners
4
Q
Which HR professionals have tehcnical knowledge and skills in a specific HR function?
A
HR specialists
5
Q
What ensures consistent messages and administration throughout an organization?
A
HR policies & procedures
6
Q
What is the primary reason that employee handbooks should be reviewed carefully and continually updated?
A
They create an enforceable contract
7
Q
Speaking the language of business, understanding the multiple functions of an organization, and being able to show the value of HR to the organization
A
Business Acumen
8
Q
The ongoing process of creation, research, reassessment, and development that successful business leaders use to stay competitive
A
Strategic Management
9
Q
When HR balances the strategies of the business with the needs of employees and the requirements of laws and legislation
A
Strategic Alignment
10
Q
5 critical components of strategic alignment from the HR perspective
A
- Workforce planning
- Organizational capability assessment
- Organizational development and structure
- Diversity and inclusion
- Change management
11
Q
What 2 tools does HR use to make strategic decisions?
A
- Analytics
- Business intelligence
12
Q
What are some examples of external forces in the environment that HR must remain keenly aware of and respond strategically to with HR solutions?
A
economy, consumer demand, laws & regulations, technology, the labor force
13
Q
What external factors does a PESTLE analysis analyze?
A
Political factors
Economic factors
Social factors
Technological factors
Legal factors
Environmental factors
14
Q
According to Porter’s Five Forces, what 5 forces should HR/organizations access to proactively develop strategic initiatives?
A
- competition/rivalry
- the potential threat of new entrants to an industry
- the power of suppliers
- the power of consumers
- the threat of substitute products
15
Q
What do statistical models do?
A
Analyze data to uncover trends affecting the organization
16
Q
Analyzes external and internal conditions that impact an organization
A
Environmental scan
17
Q
What does a SWOT Analysis look at?
A
an organizations internal Strengths, Weaknesses, Opportunities, & Threats
18
Q
In a SWOT analysis, what are always external and cannot be controlled?
A
Opportunities and threats
19
Q
In a SWOT analysis, what are internal and can be controlled?
A
Strengths and weaknesses
20
Q
What 2 things should KPIs be?
A
- Relevant to the business
- Impacting profitability
21
Q
An electronic platform for data entry, tracking and reporting HR information
A
Human Resource Information System (HRIS)
22
Q
Provides company the data to track and analyze applicants, employees, and former employees
A
Human Resource Information System (HRIS)
23
Q
A platform with one location for the creation, distribution, and record retention of training and development within the organization
A
Learning Management System (LMS)
24
Q
The process of defining and organization’s overall purpose and goals and how these goals will be achieved
A
Strategic planning
25
What 4 questions does strategic planning answer about the organization?
1. Where are we now?
2. Where do we want to be in __ years?
3. How will we get there?
4. How will we know when we are there?
26
Strategic planning method that focuses on the organization's mission, vision, and values
Goals-based planning
27
Strategic planning method that focuses on the issues facing the organization and determines the steps needed to address them
Issues-based planning
28
Strategic planning method that focuses on a common vision and values and identifying best practices and methodologies in the organization
Organic planning
29
5 general steps of the strategic planning process
1. Plan the process
2. Study the environment (SWOT, PESTLE, Porter's 5 Forces, etc.)
3. Formulate a strategy
4. Implement the strategy
5. Evaluate the strategy
30
Defines the organization's purpose, what it offers, whom it serves, and where it operates
Mission statement
31
Statement that outlines an organization's goals
Vision statement
32
Frames an organization's perspective and guides its actions
Core values
33
What is the strategic HR plan called?
Human capital plan
34
6 general components of a Human Capital Plan
1. Strategic direction
2. Human capital goals
3. Strategies for accomplishing goals
4. Implementation plan
5. Communications plan
5. Accountability system
35
When leadership examines processes for redundancy within the entire organization or in certain departments or teams and simplifies operations to improve efficiency and reduce costs
restructuring/reengineering
36
When an organization grows teams by creating new positions and hiring additional personnel
Expansion in force
37
When an organization decreases personnel expenses by eliminating positions or departments
Reduction in force/downsizing
38
When a company's product line, service, or business unit is spun off or sold
Divestiture
39
What are the 4 basic structures that all businesses operating in the US are formally organized into?
1. Sole proprietorship
2. Partnership
3. Corporation
4. Limited Liability Company (LLC)
40
Business structure in which the business owner operates alone as the sole responsible party for the business
Sole proprietorship
41
Business structure in which two or more people share ownership of the business
Partnership
42
Business structure in which the business is a legal entity owned by shareholders in the form of stock or equity
Corporation
43
Business structure that is a hybrid of a partnership and a corporation
Limited Liability Company (LLC)
44
What is the difference between an LLC and a C-Corp?
LLC does not pay taxes (they pass through the member's personal taxes); C-Corps are subject to taxes and are taxed separately from the owners/shareholders
45
Core business function responsible for acquiring resources (inputs) and delivering final products to customers
Procurement, logistics, & distribution
46
Core business function responsible for designing, revising, and improving products or services offered to the marketplace
Product or service development
47
Core business function responsible for organizing raw products and production processes to create a final product or service
Operations
48
Core business function responsible for targeting prospective clients, developing and maintaining relationships with existing customers, and promoting and advertising products and services through multiple channels
Marketing and sales
49
Core business function responsible for supporting customers who buy products or services, resolving problems and complaints, and answering questions about products or services
Customer service
50
Support business function responsible for overseeing corporate governance, accounting, facilities, management, and administrative support
General Management
51
Support business function responsible for overseeing the recruitment, hiring, training, compensation, and termination of employees
Human resources
52
Support business function responsible for maintaining, automating, and designing the technical infrastructure of the organization, including equipment, hardware, and software
Information Technology
53
What are 5 common approaches to organizational design that help decision-makers group people together in the organization?
1. Functional structure
2. Divisional structure
3. Matrix structure
4. Team structure
5. Network structure
54
Organizational design structure that groups positions into departments or units based on similar tasks, expertise, skills, and resources
Functional structure
55
Organizational design structure that groups business units according to a type of output
Divisional structure
56
Organizational design structure that mixes functional and divisional structure; people work in teams that integrate disparate expertise
Matrix structure
57
Organizational design structure that integrates separate functions into a group based on a particular goal or objective
Team structure
58
Organizational design structure that involves external entities performing certain functions on a temporary or contractual basis
Network structure
59
Organizational decision-making structure that depends on one individual (or group of executives) to make decisions and provide direction
Centralized
60
What is 1 benefit and 1 weakness of centralized decision-making?
1. Quick, efficient decision-making
2. Can become bureaucratic due to hierarchy of management
61
Organizational decision-making structure that has several individuals responsible for management decisions
Decentralized
62
What is a weakness of decentralized decision-making?
Reaching consensus can be challenging and slow down progress toward objectives
63
What 3 methods do organizations use to coordinate labor?
1. informal communication (face-to-face interaction, email, & conference calls)
2. Formal hierarchy (gives authority to individuals at certain levels of the org, who then direct work processes & allocate resources)
3. Standardization (development of routine processes, measured ouputs, and required trainings/competencies)
64
Describes the extent of a manager's authority; the number of employees reporting to them
Span of control
65
What is a tall organization?
An organization with a narrow span of control (few employees reporting to each manager); lengthy hierarchical structure
66
What is a flat organization?
An organization with a wide span of control (many employees reporting to each manager)
67
What are the 4 stages of an organization's life cycle according to Richard L. Daft?
1. Birth
2. Youth
3. Mid-life
4. Maturity
68
What stage of an organization's life cycle is characterized by: small size, one person doing many jobs, single leader, informal environment, no rules?
Birth
69
What stage of an organization's life cycle is characterized by: Medium size, basic departments, a few leaders, some rules, some basic processes?
Youth
70
What stage of an organization's life cycle is characterized by: Large-size, many departments, departmental leaders, many formal rules, complex processes and systems?
Mid-life
71
What stage of an organization's life cycle is characterized by: very large size, very specific jobs, many middle managers, detailed rules and procedures, focus on future needs
Maturity
72
What are the 5 growth phases of an organization, according to Larry E. Greiner?
Growth through
1. Creativity
2. Direction
3. Delegation
4. Coordination
5. Collaboration
73
According to Greiner's 5 growth phases, each organizational growth phase is a period of _____ years, followed by a period of _______.
4-8 years; organizational crisis
74
What is the resulting organizational crisis of the growth through creativity phase?
Crisis of leadership
75
What is the resulting organizational crisis of the growth through direction phase?
Crisis of autonomy
76
What is the resulting organizational crisis of the growth through delegation phase?
Crisis of control
77
What is the resulting organizational crisis of the growth through coordination phase?
Crisis of bureaucracy
78
What is the resulting organizational crisis of the growth through collaboration phase?
No formal crisis, but employees may grow exhausted by teamwork and pressure
79
What 3 criteria indicate an organization has reached maturity?
1. Has resources to plan for the future
2. Formalized policies & procedures
3. A solid infrastructure in which it operates
80
What causes a mature organization to begin to decline?
A high level of inefficiency and bureaucracy; products/services may become outdated and sales may decline due to a lack of innovation
81
How can leaders revive an organization that is in decline?
Innovate by developing new or refined products/services that meet the demands of the marketplace
82
What should HR do before an M&A to identify possible conflicts and address any problems?
risk assessment
83
What 2 major things should HR evaluate about the other company when considering a merger or acquisition?
1. the other company's culture and how the 2 cultures will integrate
2. the other company's compensation structures & benefits plans to identify compatibility
84
The process of maximizing an organization's resources to achieve optimum performance
Workforce optimization
85
Refers to the set of systems, principles, and processes that guide everything a company does, including the relationships between its stakeholders (board of directors, management, and others)
Corporate governance
86
Who does the Board of Directors typically consist of, and who elects the Board of Directors?
Inside directors (who work for the organization) and outside directors (who do not work for the org). Elected by the shareholders.
87
What legal act ensures that stakeholders in public corporations appropriately maintain and uphold their fiduciary responsibilities and enforces penalties for violations?
Sarbanes-Oxley Act of 2002
88
According to the Sarbanes-Oxley Act, who is held accountable for the accuracy of filings with the Securities and Exchange Commission?
The organization's Chief Executive
89
What is an organization's ideals/what it wants to do when conducting business?
Code of Ethics
90
What outlines what an organization expects from employees and how those who violate the code will be disciplined?
Code of Conduct
91
What arises when an employee might personally benefit from the action of the organization?
Conflict of Interest
92
Under the Sarbanes-Oxley Act, violations of securities laws or a breach of fiduciary duty must be reported to who?
The Chief Legal Officer or CEO of the organization
93
What are people who report violations, assist those reporting violations, and help with investigations called?
Whistleblowers
94
What 2 bodies are whistleblower protections regulated by?
1. Department of Labor
2. Occupational Safety and Health Administration (OSHA)
95
What type of organizations are subject to the Sarbanes-Oxley Act?
those that are publicly traded
96
Under what regulations is an employer prohibited from taking adverse action against whistleblowers, including termination of employment, reducing pay, etc.?
Occupational Safety and Health Administration (OSHA)
97
Who is the appointed person at an organization that advises all employees on their obligations to maintain an ethical workplace, including acceptable and unacceptable conduct?
Ethics Officer
