Chapter 2: Strategic HR Planning Flashcards
(T/F) The environmental scanning stage of HR planning can directly inform the design of compensation and benefits packages to attract and retain the right employees.
True
__________ are set by an organization to address its position in relation to its competitors.
Strategic plans
Expectations and unwritten rules about the relationship and exchange between employers and employees make up the:
psychological contract
One difference between corporate and business unit strategies is that:
a. corporate strategies may concentrate on a particular geographic location or profit center, while business unit strategies focus on goals such as product development.
b. corporate strategies focus on a shorter time span than business unit strategies.
c. corporate strategies outline the big picture of the whole organization, while business unit strategies focus on a particular segment.
d. corporate strategies are broad, while business unit strategies focus on short-term, day-to-day operations.
c. corporate strategies outline the big picture of the whole organization, while business unit strategies focus on a particular segment.
__________ occurs when two organizations become a single entity, combining resources and unifying their objectives and goals.
Merger
Which of the following is NOT a way in which strategic human resource planning can be challenging?
a. Many HR managers rely on their intuition and their years of experience and are resistant to a more systematic approach.
b. Strategic HR planning uses an extremely detail-oriented approach and requires 100% accuracy.
c. There is rarely a systematic method for HR managers to assess the accuracy or relevance of information.
d. Things change so quickly that information may no longer be useful once it is incorporated into the strategic plan.
b. Strategic HR planning uses an extremely detail-oriented approach and requires 100% accuracy.
(T/F) The economic value added method measures strategic performance factors such as internal business processes, customer service, as well as learning and growth in order to align organizational activities, including HR, with its strategic objectives.
False
Expectations and unwritten rules about the relationship and exchange between employers and employees make up the _________.
psychological contract
(T/F) The environmental scanning stage of HR planning can directly inform the design of compensation and benefits packages to attract and retain the right employees.
True
__________ are set by an organization to address its position in relation to its competitors.
Strategic plans
Which of the following is NOT true about the quantitative method used to forecast labor demand?
a. It takes a centralized approach.
b. It uses market patterns.
c. It is known as trend analysis.
d. It extrapolates past trends.
a. It takes a centralized approach.
Which of the following is NOT true about the quantitative method used to forecast labor demand?
a. It takes a centralized approach.
b. It uses market patterns.
c. It is known as trend analysis.
d. It extrapolates past trends.
a. It takes a centralized approach.
a measure of organizational performance used to assess HR investments in their own right or in comparison to alternative investments to maximize shareholder value
Economic value added (EVA)
EVA = (operating profit) - (cost of capital)
**in order for an organization to create wealth for shareholders, must add value beyond the cost of capital.
quantitative measures of HR performance and effectiveness
HR metrics
What are some examples of HR metrics?
return on investment
economic value added (EVA)
balanced scorecard
benchmarking
HR audits
What are HR metrics used for?
to assess the efficiency and effectiveness of HR functions
financial measure that evaluates the efficiency of an investment.
return on investment (ROI)
ROI = (actual and prospective cost of benefits)/(total value of costs)
**can be used to measure the costs of HR activities and the length of time needed for these activities to pay off
measures the organization’s financial performance and other strategic performance factors.
the purpose is to align organizational activities with strategic objectives (3rd party
balanced scorecard
the practice of comparing organizational performance metrics against those of other organizations
benchmarking
limitations: Benchmarking can require extensive investments of time, labor, and capital, and costs for a large program can run into the hundreds of thousands of dollars, and the firm is always “playing catchup”
a tool for organizations to diagnose the current status of HRM through assessingHR policies and the degree to which they fit organizational strategies.HR policies are assessed by evaluating the organizational impact ofHR activities in each of theHR areas, which include staffing, compensation, performance management, and training and development.
HR audit
