Chapter 2 Flashcards
Define strategy
A plan in organization follows for how to compete successfully, survive, and grow
Define strategic planning
The process of defining organizational strategy, or Direction, and allocating resources towards its achievement
Define organizational mission
The core reason for the existence of the organization and what makes it unique
Define strategic HR management
The appropriate use of HR management practices to gain or keep a competitive advantage
What are the five human resource contributions to strategy?
Having a seat at the Strategic table: companies must include HR Professionals in discussions about strategy and encourage them to provide input.
Being knowledgeable about business operations: Understanding how the business works and knowing the need for certain strategies are important components.
Focusing on the future: Strategic planning requires leaders to think about the future based on past experiences.
Prioritizing business goals: Efforts that have the greatest impact on the business and its objectives are emphasized first.
Understanding what to measure: Metrics are a vital part of assessing success, which means identifying the right metrics that are linked to business goals.
Define multinational corporation MNC
an organization that has facilities and other assets in at least one country other than its home country
Define offshoring
a company’s relocation of a business process or operation from one country to another
Define ethnocentric policy
Managers from headquarters staff key positions
ensures control over subsidary location operations
easy transfer of policies from headquarters to subsidiary
Define polycentric policy
host country Nationals staff key positions enter reduces cultural mishaps and misunderstanding
coordination with headquarters may be problematic
Define Regio Centric policy
Key positions are filled by individuals in the region of subsidary
capitalizes on cultural and language similarities within the region
Define Geocentric policy
An international Cadre of skilled managers are assigned to Global subsidiaries regardless of nationality
leverages technical and managerial expertise
Define human resource planning
the process of analyzing and identifying the need for an availability of people so the organization can meet its strategic objectives
Define environmental scanning
the assessment of external and internal environmental conditions that affect the organization
Define succession planning
the process of identifying a plan for the orderly replacement of key employees
What does SWOT mean?
Strengths: intellectual Capital, loyal committed employees, Innovative adaptive employees, high performance practices
Weaknesses: lack of skilled employees, lack of leadership pipeline, outdated talent management practices
Opportunities: Market position, unexplored markets, Global expansion, technology advances
Threats: legal mandates and restrictions, competitor power, economic uncertainty, Talent Shortage
What variables does HR need to consider when discussing a changing Workforce?
Aging of the workforce
growing diversity of workers
female workers and work-life balance concerns availability of contingent workers
Outsourcing possibilities
Define forecasting
Using information from the past and present to predict future conditions
What is a short range forecast?
The most commonly used planning period Is 6 months to a year.
What is intermediate range forecasting?
Intermediate-range forecasting plans usually project 1 2 3 years into the future.
What is long range forecasting?
Long range forecast scene is extension of Beyond 3 years
How can HR manage a Talent Surplus?
Reduce employee work hours or compensation
Attrition
Hiring Freezes
Vouluntary separation programs
Workforce downsizing/reduction in force (RIF)
How can HR manage a Talent Shortage?
Increase employee wokrhours trhough overtime Outsource to a third party Implement alternative work arrangements Use Contingent workers (temporary) Reduce employee turnover
Define Severance Benefits:
Temporary paymetns made to laid-off employees to ease the fincanial burden of unemployement
What is the order for overcoming Talent Shortage?
- Use Overtime
- Outsource work
3 Try Alternative work arrangements
4Bring back recent retirees
5 increas contingent workers
6 reduce turnover
Define outsourcing:
Transfering the managemrnt and performance of a business function to an external service provider
Define Alternate work arrangements
Nontraditional schedules that provide flexibility to employees
Define Due diligence
A comprehensive assessment of all aspects of the business being acquired.
What is HR’s role in a Merger and Aquistion before the deal?
Conduct due diligence
Assess risks
Identify possible conflicts
What is HR’s role in a Merger and Aquistion during intergration?
Address key HR processes
Retain key talent
Recognize cultural differences
What is HR’s role in a Merger and Aquistion post intergration?
Optimize workforce
Identify and establish new culture
Define Effectiveness
The ability of a program, project, or task to produce a specific desired effect or result that can be measured
Define Efficeincy
The degree to which operations are carried out in an economical manner.
Define HR Metrics
Specific measures of HR practices
Define HR analytics
An evidence-based approach to making HR decisions on the basis of quantitative tools and models
Define Benchmarking
The process of comparing an organization’s business results to industry standards or best practices.
What is HR Staff and Expenses in HR Metrics?
HR-to-employee ratio
Total HR staff
HR expenses per FTE
What is Compensation in HR Metrics?
Annual Wage and salary increases
Payroll as a percentage of operating expenses
Benefit costs as a percentage of payroll
What is Retention and Quality in HR Metrics?
Average tenure of employees
Percentage of new hires retained for 90 days
Performance quality of employees in first year
What is Staffing in HR Metrics?
Number of positions filled
Time to fill
cost per hire
annual turnover rate
What is Training in HR Metrics?
Hours of training per employee
total costs for training
percventage of employees participating in tuition reimbursment program
What is Development in HR Metrics?
Positions filled internally
Percentage of employees with career plan
Define Benchmarking
The process of comparing an organization’s business results to industry standards or best practices.
Define a Balanced Scorecard
A framework organizations use to report on a diverse set of performance measures.
What are the four areas a Balanced Scorecard measures?
Financial Resources: Profit and Loss, operating margins, utilization of capital, ROI
Internal Business processes: Product and service quality, efficiency and productivity, conformance with standards, cycle times to run smoothly
Customer relations: Customer satisfaction, loyalty, and retention
Learning and growth activities: Employee training and developement,mentoring programs, succession planning, and knowledge creation
Define Return on Investment
Calculation showing the value of investments in human capital
Define Human Capital Value Added (HCVA)
Calculated by subtracting all operating expenses except labor expenses from revenue and dividing by the total full-time headcount
Define Human capital return on investment (HCROI)
Directly shows the amount of profit derived from investments in labor
Define Human economic Value Added (HEVA)
Wealth created per employee
Define HR Audit
A formal research effort to assess the current state of an organization’s HR practices
What are the 5 different types of audits?
Compliance Audit: Record keeping on state and Federal documentation
Benefit Programs Audit: Reviews regulatory complaince
I-9 Audit: Reviews compliance with immigration
Specific program audit: Reviews specific HR subareas like compensation
Ful HR audit: Reviews all of the above plus any other HR functions
