Chapter 2 - HR Strategy and Planning Flashcards
Define “Strategy”.
-A plan an organization follows for how to compete successfully, survive, and grow.
Page 36
Define “Strategic Planning.”
-The process of defining organizational strategy, or direction, and allocating resources toward its achievements.
Page 36
Define “Organizational Mission”.
-The core reason for the existence of the organization and what makes it unique.
Page 36
Define “Organizational Core Values”.
-Principles that create the operating philosophy for organizational decisions.
Page 37
Define the acronym “VUCA”.
-Volatile
-Uncertain
-Complex
-Ambiguous
Page 37
Define “Triple Bottom Line”.
It considers the organization’s impact on three major areas: -economic -social -environmental Page 37
Define “Strategic HR Management”.
-The appropriate use of HR management practices to gain or keep a competitive advantage.
Page 40
Define “Multinational Corporation” (MNC).
-An organization that has facilities and other assets in at least one country other than its home country.
Page 42
Define “Offshoring”.
-A company’s relocation of a business process or operation from one country to another.
Page 42
Define “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.
Page 44
Define “Environmental Scanning”.
-The assessment of external and internal environmental conditions that affect the organization.
Page 45
Define “Succession Planning”.
-The process of identifying a plan for the orderly replacement of key employees.
Page 46
Define “Forecasting”.
-Using information from the past and present to predict future conditions.
Page 49
What are the lengths of time for short range, intermediate range, and long range forecasting plans?
-Short range: 6-12 months
-Intermediate range: 1-3 years
-Long rang: over 3 years
Page 49
What are the two types of forecasting methods?
-Qualitative and quantitative
Page 49
What are five effective ways that can make layoffs effective?
- Identify core jobs
- Identify KSAs needed for business strategy
- Protect bottom line and corporate brand
- Constantly communicate with employees
- Pay attention to the survivors
Page 54
Define “Severance Benefits”.
-Temporary payments made to laid-off employees to ease the financial burden of unemployment.
Page 54
Define “Outsourcing”.
-Transferring the management and performance of business function to an external service provider.
Page 56
Define “Alternative Work Arrangements”.
-Nontraditional schedules that provide flexibility to employees.
Page 56
What does the abbreviation “M&A” stand for?
-Mergers and Acquisitions
Page 56
Define “Due Diligence”.
-A comprehensive assessment of all aspects of the business being acquired.
During M&A integration, what are four important factors in changing culture?
- Define the desired behavior
- Deploy role models
- Provide meaningful incentives (for role models, etc.)
- Provide clear and consistent messages (Do what you say you’ll do)
Page 57
Define “Effectiveness”, with relevance to measuring HR and human capital.
-The ability of a program, project, or task to produce a specific desired effect or result that can be measured.
Page 58
Define “Efficiency”.
-The degree to which operations are carried out in an economical manner.
Page 58
What does the abbreviation “KPI” stand for?
-Key performance indicators
Page 58
Define “HR Metrics”.
-Specific measures of HR practices
Page 58
Define “HR Analytics”.
-An evidence-based approach to making HR decisions on the basis of quantitative tools and models.
Page 59
Define “Benchmarking”.
-The process of comparing an organization’s business results to industry standards or best practices.
Page 61
Define “Balanced Scorecard”.
-A framework that organizations use to report on a diverse set of performance measures.
Page 61
What four areas of performance do balanced scorecards measure?
- Financial measures
- Internal business processes
- Customer relations
- Learning and growth activities
Page 61
Define “TCOW”.
-“The Total Cost of Work”
-A comprehensive measure that takes into account the full cost for all people that contribute work to the organization.
Page 62
With regard to TCOW, what formula is used to calculate revenue per employee?
Revenue / head count (FTE)
Page 62
What formula is used to calculate Return on Investment?
ROI = C / A+B
A = Operating costs for a new or enhanced sys. for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period
Page 62-63
What is “HCVA”?
What is it used to calculate?
What is the formula used to calculate it?
-Human Capital Value Added
-Used to calculate operating profit per FTE
Revenue - (Operating expenses [Compensation + Benefit costs]) / FTE
Page 63
What is HCROI?
What does it calculate?
How is it calculated?
-Human Capital Return on Investment
-Used to calculate the amount of profit derived from investments in labor.
Revenue - (Operational expenses - [compensation + benefit costs]) / (compensation + benefit costs)
Page 63
What does “HEVA” stand for?
What is it used to calculate?
What is the formula used to calculate it?
-“Human Economic Value Added”
-Used to calculate wealth created per employee
Net profit after taxes - Cost of capital / FTE
Page 63
Define “HR Audit”.
-A formal research effort to assess the current state of an organization’s HR practices.
Page 63
What are some types of HR audits?
-Compliance audit
-Benefit programs audit
- I-9 audit
-Specific program audit
-Full HR audit
Page 64
