EXAM 1 HUMAN RESOUR Flashcards
The proposition an organization follows for how to compete successfully and thereby survive and grow
Strategy
The process of defining organization strategy and allocating resources toward its achievement
Strategic Planning
What are the steps in the strategic planning process?
- Organizational Mission
- SWOT Analysis
- Establish Goals and Objectives
- Formulate Organizational Strategy
- Formulate Supporting Functional Strategies
- Implement
- Evaluate and Reassess
Definition: The guiding force and core reason for existence of the organization and what makes it unique
Organizational Mission
Definition: The design of formal systems in an organization to manage human talent for accomplishing organizational goals.
Human Resource Management
Organizations must manage four types of assets to be successful:
- Physical Assets
- Financial Assets
- Intellectual Property Assets
- Human Assets
Definition: The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
Human Capital aka Intellectual Capital
To contribute in the strategic planning process, HR professionals provide their perspective and expertise to operating managers by doing the following:
- Understanding the business: Knowing the financials and key drivers of business success is important to understanding the need for certain strategies.
- Focusing on the key business goals: Programs that have the greatest relevance to business objectives should get priority.
- Knowing what to measure: Metrics are a vital part of assessing success, which means picking those measures that directly relate to the business goals.
- Preparing for the future: Strategic thinking requires preparing for the future, not focusing on the past—except as a predictor of the future.
Definition: A corporation that has facilities and other assets in at least one country other than its home country.
Multinational Corporation
Relocation of a business process or operation by a company from one country or another
Offshoring
Definition: Entails providing input into organizational strategic planning and appropriate use of HR management practices to gain competitive advantage.
Strategic HR Management
Definition: The process of analyzing and identifying the need for and availability of people so that the organization can meet its strategic objectives.
Human Resource Planning
Definition: The assessment of external and internal environmental conditions that affect the organization.
Environmental Scanning
Definition: The process of identifying a plan for the orderly replacement of key employees.
Succession Planning
When scanning the potential and future workforce, it is important to consider a number of variables, including:
- Aging of the workforce
- Growing diversity of workers
- Female workers and work–life balancing concerns
- Availability of contingent workers
- Outsourcing possibilities
Definition: Using information from the past and the present to identify expected future conditions.
Forecasting
HR forecasting should be done over three planning periods:
short range, intermediate range, and long range.
What are the steps in the HR Planning Process?
- Review Organizations Environmental Analysis/Strategic Plans
- Assess External & Internal Workforce
- Compile HR Planning Forecasts
- Develop HR Staffing Plan and Actions
Definition: Temporary payments made to laid-off employees to ease the financial burden of unemployment.
Severance Benefits
Definition: Transferring the management and performance of a business function to an external service provider.
Outsourcing
Definition: Nontraditional schedules that provide flexibility to employees.
Alternate Work Arrangements
Definition: A comprehensive assessment of all aspects of the business being acquired.
Due Diligence
Four Important Factors In Changing Culture:
- Define the Desired Behaviors
- Deploy Role Models
- Provide Meaningful Incentives
- Provide Clear and Consistent Messages
Factors Affecting External Pool of Employees
- Economic and Governmental Factors
- Geographic/Competitive Evaluations
- Changing Workforce Considerations
Definition: The ability to produce a specific desired effect or result that can be measured.
Effectiveness
Definition: The degree to which operations are done in an economical manner.
Efficiency
Definition: Specific measures of HR performance indicators.
HR Metrics
Definition: An evidence-based approach to making HR decisions on the basis of quantitative tools and models.
HR Analytics
Definition: Comparing the business results to industry standards.
Benchmarking
What are the 4 measures of a balanced scorecard?
- Internal Business Processes
- Customer Relations
- Financial Measures
- Learning and Growth Activities
Formula for ROI
C / (A+B)
A = Operating costs for a new or enhanced system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period
Calculation showing the value of an investment.
Return on Investment
is an adjusted operating profitability figure calculated by subtracting all operating expenses except for labor expenses from revenue and dividing by the total full-time head count.
Human Capital Value Added
Formula for Human Capital Value Added
(Revenue - (Operating Expense - (Compensation + Benefit Costs)))
/
Full-time Head Count
directly shows the amount of profit derived from investments in labor, the leverage on labor cost. The formula for HCROI uses the same adjusted operating profitability figure as for HCVA, but it is divided by the human capital cost:
Human Capital Return on Investment
What is the formula for Human Capital Return on Investment
(Revenue - (Operating Expense - (Compensation + Benefit Costs)))
/
(Compensation + Benefit Costs)
The supply pool from which employers attract employees.
Labor markets
All individuals who are available for selection if all possible recruitment strategies are used.
Labor Force Population
A subset of the labor force population that is available for selection using a particular recruiting approach
Applicant population
All persons who are actually evaluated for selection.
Applicant pool
Image of the organization that is held by both employees and outsiders.
Employment brand
Employment agencies that focus their efforts on executive, managerial, and professional positions.
Headhunters
System in which the employer provides notices of job openings and employees respond by applying for specific openings.
Job posting
Seeking out former employees and recruiting them again to work for an organization.
Rerecruiting
Cost of recruiting equation
total recruiting costs
/
number of recruits hired
Comparison of the number of applicants at one stage of the recruiting process with the number at the next stage.
Yield ratio
Percentage hired from a given group of candidates.
Selection rate
Percent of applicants hired divided by total number of applicants offered jobs.
Acceptance rate
Consideration of the following recruiting activities should be done to make recruiting more effective:
resume mining applicant tracking employer career website internal mobility realistic job previews responsive recruitment
A longer-term measure of recruiting effectiveness is the _____
success rate of applicants.
The process of choosing individuals with the correct qualifications needed to fill jobs in an organization.
Selection
The investment of time and effort in selecting the right people for jobs will make managing them as employees much less difficult because many problems are eliminated.
Hire hard, manage easy.
When people without the appropriate aptitudes are selected, employers will have difficulty training them to do those jobs that they do not fit.2
Good training will not make up for bad selection.
Fitting a person to the right job.
Placement
Matching the KSAs of individuals with the characteristics of jobs.
Person/job fit
The congruence between individuals and organizational factors.
Person/organization fit
Job candidates are attracted to and selected by firms where similar types of individuals are employed and individuals who are different quit their jobs to work elsewhere.
Attraction-selection-attrition (ASA) theory
Characteristic that a person must possess to successfully perform work.
Selection criterion
Measurable or visible indicators of selection criteria.
Predictors of selection criteria
Index number that gives the relationship between a predictor variable and a criterion variable.
Correlation coefficient
Measured when an employer tests current employees and correlates the scores with their performance ratings.
Concurrent validity
Measured when test results of applicants are compared with subsequent job performance.
Predictive validity
