Chapter 2 Flashcards
Strategic Planning
Procedures to make decisions about organization’s long-term goals and strategies.
Human Resources Planning (HRP)
Anticipating and providing for the movement of people into, within, and out of an organization.
Strategic human resources management (SHRM)
Identifying and analyzing patterns of human resources deployments and activities that enable an organization to achieve its strategic goals (Combination of Strategic Planning & Human Resources Planning)
As the commoditization of products becomes increasingly focused on price, talents are what differentiates what companies are successful or not.
What is High-performance work systems? What factors add into HPWS?
HPWS is a system that emphasizes the involvement of employees and commitment rather than one side of control.
- Involving an employee’s personal stake to actualize a company’s vision.
- Ensure that they attract, select, and train the best talent
- Employee empowerment
- Aligning leaders to make sure their focus aligns with the organization
Strategic Formulation
HRP depicts what is possible based on the statistics to make decisions on strategic planning.
Strategic implementation
HR’s role in strategic implementation:
1. Determine how many human resources demanded
2. Determine how many human resources are available in the labour market
Steps in establishing strategic planning
- Establish vision, mission, and values.
- External analysis
- Internal analysis
- Strategy formulation
- Strategy implementation
- Evaluation
Attrition
Natural turnover rates in an organization.
Usually are accompanied by other methods such as hiring freeze
What is balanced scorecards?
framework that helps managers translate strategic goals into operational objectives
Benchmarking
identifying “best practices” in a given area and then comparing your practices and performance to those of other companies.
Core capabilities
Bundles of people, processes, and systems that integrate. It distinguishes an organization from its competitors in order to deliver a unique value for the customers.
Core Values
Beliefs and principles that the company uses as foundations for its decision-making processes (underlying parameters).
Cultural Audits
Analyzing values, assumptions, and expectations of their workforce.
What is environmental scanning?
Systematic monitoring of the major external forces influencing the organization.
What is Hiring Freeze
Temporary disable of the entire recruitment, selection, and training processes. Firms are not accepting new employees.
Human Capital Readiness
Evaluating the availability of critical talent inside of the company and comparing it to the supply available. Identify the gap that exists between companies’ demand and firm’s or market supply.
Management Forecasts
the opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs.
(Qualitative)
Markov Analysis
A method to track the pattern of employee movements in a company. For example, a company can predict how many employees they will need in the next year by the result of this analysis, which will predict how many employees will exit their organization or get promoted to a different position, therefore leaving vacant spots.
Mission
basic purpose of organizations
Organizational capability
Capacity of organization to act and change in pursuit of sustainable competitive advantage.
- Coordination flexibility: rapid reallocation of resources to new or changing methods.
- Resource flexibility: having people that can do many different things in different ways.
Quality of fill
How well new employees are performing on the job.
Replacement charts
lists current jobholders and people who are potential replacements if an opening occurs.
Severance pay
payment that are given to the employees prior to the employer-initiated termination
Skill inventories
List each employee’s
- Education
- Work experience
- Vocational interests
- Specific abilities and skills
- Compensation history
- Job tenure
Staffing tables
Graphic representation of all organization’s jobs with the number of employees occupying those jobs and future employment requirements
Stakeholders
Key people that have an interest in a firm’s activities. They can affect and be affected by the firm.
Strategic vision
Depiction on what the company will become and where it will be in the future.
SWOT analysis
comparison of strength, weakness, opportunities, and threats for strategy formulation purposes.
Termination
Permanent separation.
reduce the size of the workforce and thereby save money.
Trend analysis
firm’s employment requirements are forecasted on the basis of some organizational index. Relies on a single factor (i.e. sales) to predict future employment needs.
Value creation
Process of creating value that would differentiate a company’s product from its competitors. It is the amount of benefits provided by a product and/or service subtracted by costs to produce them.
Classification of workers
Strategic knowledge workers:
Unique skills
High Value
Engaged in knowledge work
Bound in a long-term commitment by the companies
- Computer scientists, petroleum engineers, etc.
Core employees:
Skills that are valuable, but are not unique.
Replaceable
Transferable skills
- Sales people or truck drivers.
Supporting workers:
Less strategic value and are widely available in the labor market.
Hired on a contract basis to support core and strategic knowledge workers.
- Maintenance workers, clerical workers, etc.
External partners:
Lawyers & Consultant
Cannot be internally employed, indirect link to strategy.
Specialized skills
Investment is made to exchange information and knowledge.
Companies establish long-term relationship w/ firms.
succession planning
Identifying, developing, and tracking key individuals for executive positions.
4 types of companies culture
- “Clan culture”: employees are closely knit and have great concern for one another and the customers
Starbucks & many MSMEs. - “Adhocracy”: risk-taking, innovation, and entrepreneurship -> google.
- “Market”: competitive, result-oriented behavior
investment banks. - “Hierarchical”: formal structures and procedures, efficiency are greatly valued.
Utility-type companies such as railroads
