Chapter 4 Flashcards
Explain the strategic importance of HR planning for alignment and change
As the environment changes, HR activities need to be correctly aligned with these changing conditions
strategic alignment
The state where an organization’s HRM system supports and facilitates the behaviors and competencies needed for organizational success
Vertical alignment
Exists when the HRM system fits with all other elements of the organizational environment - the culture, strategy, technology, etc
Horizontal alignment
Exists when all of the HR policies and practices that comprise the HRM system are consistent with each other and so present a coherent message to employees concerning how they should behave while at work
radical change
May be required when organizations make major adjustments in the ways they do business
incremental change
an ongoing process of gradual evolution, during which many small changes occur routinely
Reactive change
occurs when an organization is forced to change in response to an unanticipated event in the external or organizational environment
anticipatory change
when an organization takes action in anticipation of upcoming events or early in the cycle of a new trend
learning organization
continually finds new ways to satisfy customers and other stakeholders by skillfully integrating the resources of information, technology, and people to produce and the effectively use new knowledge
State the roles and responsibilities of the HR triad in HR planning
Responsibility for the planning process typically rests in the hands of line managers and HR professionals
Describe three major HR planning activities and their typical sequence
The HR planning phases include assessing the global and organizational environment, specifying HR objectives and metrics for change, and developing specific HR plans and timetables
HR planning
refers to the activities associated with scanning and assessing the environment; specifying the objectives to be achieved by HR activities, along with the measures to be used to asses thee achievement of those objectives and developing specific plans for HR policies and practices along with timetables for implementing the plans
HR objectives
state in quantitative or qualitative terms what is to be achieved with regard to the firm’s human resources
HR metrics
the measurements that are used to assess progress against HR objectives
HR plans
can the thought of as blueprints for action; they specify who needs to do what, where, and how.
Timetables
specify when each planned activity will be completed
Discuss how to scan and assess the external and organizational environments
To make sure the HR actions for change/alignment are appropriate, it is necessary to determine what needs to be done. Essential in this determination is scanning and assessing the qualities of the external and organizational environments
organizational analysis
An assessment of the external and internal environments
HR forecasts
estimates the firm’s future HR needs
Judgemental forecasts
rely on the opinions of informed experts (usually managers), who provide their estimates of current and projected productivity levels, market demand, and sales, as well as current staffing levels and mobility information
statistical forecasts
rely heavily on objective data and formal models
scenario planning
begins with information about the changes likely to occur in the external environment, such as the characteristics an size of the labor force, new government regulations, and competitors’ actions
Give several examples of HR objectives and metrics used to guide and monitor change
Organizations must keep two things in mind when determining HR objectives and metrics:
1) The HR objectives must be tied to strategic business objectives
2) The metrics must match the specified HR objective
HR ROI
Revenue - (Operating expense - [Compensation cost + Benefit cost])
__________________________
Compensation Cost + Benefit Cost
HR Value added
Revenue - (Operating expense - [Compensation cost + Benefit Cost])
__________________________
Total number of full-time equivalent employees (FTEs)
HR expense ratio
Total of all HR expenses
___________________
Total operating expenses
HR revenue ratio
Total revenue
___________
Total number of FTEs
Explain how to develop HR plans and timetables
If an organization is structured along functional departments, then each department develops a strategic plan; if it is organized by region, then plans for each region are developed
succession planning
to ensure that the organization is prepared to fill key positions when the incumbents leave for any reason
talent pool
a list of employees who have been identified as having high potential for advancement , usually because they are top performers in their current positions
replacement chart
the titles of key jobs in the organization are displayed along with the names of both the incumbents and the employees who might be used to fill potential vacancies (i.e: the most appropriate employees from the talent pool)
Describe how to implement HR action plans
Organizations can do a number of things when implementing HR action plans to improve their effectiveness. These include involving employees, establishing accountability, managing resistance to change and showing respect in difficult times
Explain the importance of reviewing, revising, and refocusing change efforts
Tracking progress in creating change is essential to success. Metrics that reflect the objectives of change should be monitored. If the initiatives undertaken to create change do not have the desired results, new plans and new change initiatives may be needed
Discuss two current issues in HR planning
Two current issues of increasing concern today are global talent management and socially responsible corporations. Both reflect the reality of the global environment for organizations and employees, and we all have a stake in how well they are managed
