Chapter 2 The Role of Human Resource Management in Business Flashcards
Organizational culture
the norms, values, and assumptions of organizational members
reinforced by things such as logos, ceremonies, dress codes, and even office decorations and furniture placement
“the way we see and do things around here”
What can be reinforced or undermined by its fit with the organization’s business strategy?
a. values
b. approach
c. culture
d. strategy
culture
high-performance work systems (HPWS)
enable high performance through employees
also called high-involvement or high-commitment
Structure so that individuals at the lowest level in the organization not only perform work but also are responsible for improving work methods and procedures, solving problems on the job, and coordinating their work with that of others
Ethics
the standards of moral behavior that define socially accepted behaviors that are right as opposed to wrong
honesty, tolerance, and responsibility
utilitarian standard
the ethical action best balances good over harm by doing the most good or doing the least harm (cutting pay rather than laying people off)
right standard
the ethical action is the one that best respects and protects the moral rights of everyone affected by the action
the right to privacy, to be told the truth, or to be safe
the fairness standard
the ethical action treats all people equally, or at least fairly, based on some defensible standard
common good standard
the ethical action shows respect and compassion for everyone, especially the most vulnerable
not employing child labor
virtue standard
the ethical action is consistent with certain ideal virtues including civility, compassion, and benevolence
quickly recalling a product that you know is defective
What ethical action is associated with balancing the most good and the least harm
a. rights standard
b. common good standard
c. fairness standard
d. utilitarian standard
utilitarian standard
Which ethical action is the one that best respects and projects the moral rights of everyone affected by the actions?
a. fairness standard
b. rights standard
c. utilitarian standard
d. common good standard
the rights standard
Which ethical action treats all people equally - or at least fairly - based on some defensible standard?
fairness standard
What are the five types of ethical standards
utilitarian, rights, fairness, common good, and virtue
What are the three types of systematic errors organizations can make?
omission errors, remission errors, and commission errors
omission errors
a lack of written rules
remission errors
pressure to make unethical choices
commission errors
a failure to follow sound, established operational and ethical practices
common ethical issues
privacy issues, staffing (nepotism), layoffs and downsizing, rewards, safety, performance appraisal, labor practices
codes of conduct
specify expected and prohibited actions in the workplace and gives example of appropriate behavior
code of ethics
a decision-making guide that describes the highest values to which an organization aspires
specifies the company’s ethical rules regarding what employees should and should not do
Six basic elements to a complete ethics and compliance program
- written standards for ethical conduct
- ethics training
- providing a way for seeking ethics-related advice or information
- providing a mechanism for anonymously reporting misconduct
- disciplining employees who violate the law or the standards of the organization
- evaluating ethical behavior as part of an employee’s regular performance appraisals
corporate social responsibility
when businesses show concern for the common good and value human dignity
community involvement, charity, how you treat your employees
stakeholder perspective
considers the interest and opinions of all people, groups, organizations, or systems that affect or could be affected the organization’s actions supports social responsibility
Common changes managed by HRM
- New production process
- Opening a new location
- Rolling out a new benefits program
- Implementing a new human resources information system (HRIS) or upgrading the current HRIS system
- Expanding international operations
What should employees change in order to support an organizational change effort?
behaviors and goals
Which of the following is a first step of a change initiative?
Identify key goals
One of the most important factors in successfully creating organizational change is the creation of a culture of _____?
trust
Five dimensions that tend to distinguish cultures across countries
- power distance
- individualism
- masculinity
- uncertainty avoidance
- long-term orientation
power distance
the amount of inequality that exists and that is accepted among people with and without power
high power distance is associated with more hierarchical companies that have large gaps in authority and compensation
low power distance is reflected in flatter organizations in which employees and supervisors are considered and treated more equally
individualism
the strength of the ties people have with others in their community
higher individualism is reflected in greater valuation of people’s time and need for freedom with an emphasis on individual and extrinsic rewards
lower individualism is reflected in placing a high value on harmony rather than honesty with an emphasis on intrinsic and collective rewards
masculinity
how much a society values and exhibits traditional male and female roles
highly masculine culture men are expected to be assertive and be the sole provider for the family
higher masculinity is reflected in a distinction between men’s and woman’s work
lower masculinity is reflected in equal employment opportunity often supported with legislation
uncertainty avoidance
the degree of anxiety felt in uncertain or unfamiliar situations
higher uncertainty avoidance is associated with a need for structure and very formal and rule-driven business conduct
lower uncertainty avoidance is associated with an informal business culture, greater acceptance of risk, and more concern with long-term performance than with daily events
long-term orientation
a focus on long-term planning, delivering on social obligations, and avoiding losing face
longer-term orientation is reflected in a strong work ethic and placing high value on education and training
shorter-term orientation is characterized by higher individualism, creativity and equality
What sometimes attracts companies to acquire other companies?
a. diversity
b. culture and diversity
c. culture
d. talent and skills
d. talent and skills
HRM metrics
measurements which can identify where the HRM system can be improved and help the HRM best meet the needs of the organization and its stakeholders
absence rate
number of employee absences/(average number of employees during the period x the number of workdays)
cost per hire
recruitment costs/(cost of compensation + benefits)
customer service ratings
average customer ratings of employee customer services performance
engagement
level of employee satisfaction or engagement with the company
health care cost per employee
total cost of employee health care/number of covered employees
innovation
percent of sales coming from products introduced in the last five years
job offer acceptance rate
number of job offers accepted/number of job offers extended
percent of performance goals met or exceeded
number of individual or group performance goals met or exceeded/total number of performance goals
profit per employee
profit/total number of employees
Return on investment ROI
[{value of a program or intervention’s benefits - total cost)/total cost] x 100
revenue per employee
revenue/total number of employees
tenure
average years of service at the organization
time to fill
days to fill a position
turnover rate
number of employees leaving/average number of employees during the same period
workers’ compensation cost per employee
total annual worker’s compensation cost/average number of employees
What should companies review before making decisions tied to business goals?
a. vacancy
b. revenue
c. rates
d. metrics
d. metrics
What are the four broad types of organizational culture?
a. administrative, bureaucratic, consensual, directional
b. entrepreneurial, bureaucratic, consensual, directorial
c. entrepreneurial, bureaucratic, consensual, competitive
d. administrative, bureaucratic, consensual, competitive
c. entrepreneurial, bureaucratic, consensual, competitive
entrepreneurial organizational culture
emphasizes creativity, innovation, and risk taking
bureaucratic organizational culture
emphasizes formal structures and the correct implementation of organizational procedures, norms, and rules; associated with consistency and high ethical standards
consensual organizational culture
loyalty and tradition, and encourages employees to stays with the organization for a long time; promotion is generally from within
competitive organizational culture
competitive advantage and market superiority; produce a large amount of stress
people - oriented culture
investing in your employees, good pay, training them well, customer oriented employees
Rolling out a new benefits program is one of the most common_______managed by HRM
a. concepts
b. strategies
c. changes
d. theories
c. changes
Which ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc?
a. fairness standard
b. virtue standard
c. utilitarian standard
d. rights standard
b. virtue standard
Which ethical action shows respect and compassion for all others, especially the most vulnerable?
a. common good standard
b. utilitarian standard
c. rights standard
d. fairness standard
a. common good standard
The standards of moral behavior that define socially acceptable behaviors as right or wrong are known as ______
a. ethics
b. policy
c. strategies
d. laws
a. ethics
A(n) ________culture that stifles innovation and risk taking is thought to have contributed to Noikia’s declining market share
a. performance
b. bureaucratic
c. competitive
d. entrepreneurial
b. bureaucratic
Starbucks is a good example of a(n)_______ culture.
a. entrepreneurial-oriented
b. people-oriented
c. competitive- oriented
d. consensually-oriented
b. people-oriented
Restaurants that schedule their highest performing servers during the busiest shifts are focused on ________ culture
a. competitive
b. consensual
c. entrepreneurial
d. performance
d. performance
Sports teams like the New York Yankees and Pittsburg Steelers consistently excel because of their strong _______ culture
a. entrepreneurial
b. competitive
c. performance
d. consensual
c. performance
performance culture
focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results
_______ is the glue that keeps employees committed to the organization and focused on making the efforts to change successful
a. ethics
b. trust
c. performance
d. diversity
b. trust
Effective _______ planning is essential to the success of a merger or acquisition.
a. succession
b. performance
c. diversity
d. talent
d. talent
