Chapter 2 Flashcards
external environment
encompasses local, national, and multinational conditions that confront an organization
organizational environment
conditions within the organization itself
economic cycles
used to describe the fluctuation in economic activity that occurs over long periods of time in developed market economies
North American Free Trade Agreement (NAFTA)
an historic agreement approved in 1993, by the Canadian Parliament, the U.S.Congress, and the Mexican Congress, designed to allow for eventual free trade month these three countries
Central American Free Trade Agreement (CAFTA)
Establishes free trade month the United States, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica
European Union (EU)
complex array of formal institutions designed to create a united Europe
The Association of Southeast Asian Nations (ASEAN)
Strives to accelerate the economic growth, social progress, and cultural development in the regions through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations
Asia-Pacific Economic Cooperation (APEC)
Has 21 member countries bordering on the Pacific Ocean, including the United States, Japan, India, and China
International Labor Organization (ILO)
the international organization responsible for drawing up and overseeing international labour standards and it brings together representatives of governments, employers and workers to jointly shape policies and programs
Social Accountability International (SAI)
Promoters socially responsible approaches to conducting business and administers a certification process called Social Accountability 8000 (SA 8000)
World Trade Organization (WTO)
the most inclusive international trade organization, it is the only global body able to enforce decisions through its own court
Technology
refers to the process of making and using tools and equipment plus the knowledge used in the process
human resource information system (HRIS)
the system that results from computer technologies being used to gather, analyze, and distribute information about job applicants and employees
electronic human resource management (e-HRM)
refers to the use of IT for conducting HRM activities and for social networking among employees
company culture
the unique pattern of shared assumptions, values, and norms that shape the socialization activities, language, symbols, and ceremonies of people in the organization
vision
top management’s view of the kind of company that it is trying to create. It can be thought of as a best-case scenario of where the company will be in the future
mission statement
defines a company’s business and provides a clear view of what the company is trying to accomplish
values
the strong enduring beliefs and tenets that the company holds dear and that help to define and differentiate it from other companies
company subculture
exists when assumptions, values, and norms are shared by some - but not all- organizational members
multicultural organization
has a workforce representing the full mix of cultures found in the population at large, along with a commitment to utilize fully these human resources
business strategy
a set of integrated and coordinated commitments and actions intended to achieve stated business goals
strategy map
shows the cause-and-effect relationships that ultimately determine firm performance
competitive strategy
describes how a particular business or business unit competes against direct rivals who offer the same products and services
What is the strategic importance of understanding external and organizational environments?
Continuous change in the external environment means that adjustments often are needed in the organizational environment. For a firm to gain a competitive advantage, all of these elements must be aligned internally and fit the conditions in the external environment
What are the role and responsibilities of the HR Triad for understanding the external and organizational environments?
As organizations strive to adjust to changes in their environments, they often must develop new approaches to managing their human resources
What are implications of economic globalization for managing human resources?
In high-wage countries companies find it hard to compete by keeping labor costs low. Instead, they often pursue business strategies that emphasize innovation and require employees with high levels of skill and knowledge
What are three aspects of the political landscape that influence the managing of human resources?
As government administrations flux, businesses must constantly analyze the implications of their philosophies and policies. Trade policies and military conflicts can have enormous consequences. Many international nongovernmental organizations (NGOs) are concerned with labor issues
Describe the US and global labor markets
The US Labor market is expected to see slowed growth, a decrease in skill availability, greater competition for employees, and an increased dependence on immigrants. The labor forces in Europe and Japan are declining. In Africa, Latin America, North America and Asia the labor forces are growing. Employers make decisions about where to place their operations considering factors such as labor costs, skill level and health issues.
What are several ways in which country cultures differ and can influence the way organizations manage human resources?
Cultural differences in how work is designed, employees’ expectations for how they will be treated, and management styles all influence how the organizations manage their human resources
What is the relationship between technology and managing human resources?
Technology makes new forms of organizing work possible as well as changing e-HRM activities
What are the components of company cultures?
A strong culture provides clear guidelines for how people in the organization should behave. Components include leadership, vision, mission statement, and company values.
How do business strategies influence the managing of human resources?
Among the competitive strategies a firm might use are ensuring high quality, keeping costs low, being innovative, and providing the best customer service. A firm’s competitive strategy can have many implications for the competencies and behaviors needed from employees, so HR policies and practices should be tailored to fit the strategy
What are two current issues in understanding the external and organizational environments
Two current issues they must address are M&As as well as the HR implications of MNCs.
