Exam Flashcards
How is succession management different than succession planning?
-broader in focus: development plans for employees are based on strategic goals, not which position will need replaced, where succession planning just looks at the position that needs replaced and backups for it)
-time horizon: looks at longer time horizon than planning, planning more short term
-talent pools: management involves developing a larger group of employees who could advance in the organization at some point instead of just developing a couple star performers
- developing competences and skills
what is talent management?
Talent management consists of everything done to recruit, retain, develop, reward and make people perform as the organization needs.
Talent management must be linked to the business strategy.
What are 3 reasons to manage talent/succession from an employer’s perspective
- if you can identify the KSAs needed in the future for the organization, you’ll have time to develop them
-developing people inside the workforce creates candidate pools
- allows you to develop employees into key workforce categories
What is 1 reason to manage talent/succession from an employee’s perspective
Enhances employee commitment to organization
What are some reasons a firm would not manage talent and succession
- don’t have the budget for it
- don’t have the HR competency to do it
- lack of interest (senior management doesn’t have an interest in it only look at short-term horizon)
What are the 4 main typologies from the sonnenfeld & Peiperl article
club: hire from internal people and make the decision based on their contributions to the group, like a club encouraging good people to stick around and reward loyalty
baseball team: look externally to get the best people they can get at any stage in their career, and look at their individual contributions
academy: prefer to hire from within, get people early in careers very specialized and based on individual contributions
Fortress: when they have key management or critical positions, they hire externally. When they look at contributions they look at team. Bc the org more likely to be in difficult stakes. HR department operating like a fortress. People don’t expect to stick around a long time
Which of the 4 talent management typologies would do succession management
club and academy
Which of the 4 talent management typologies would not do succession management
baseball team and fortress
Which of the 4 organizational strategies correspond to each of the talent management strategy
defender: club
prospector: baseball team
analyzer: academy
reactor: fortress
T or F, organizations will modify the approach they use as the corporate strategy changes
true
T or F different parts of the organization you might have different approach for succession management for different area
true example St mikes: on admin side it might be more club based, but on physician side operating like an academy)
what are the 4 criteria for effective succession management
- program has stated goals
- program has formal operating policy and procedures
- program is linked to other hr and organizational processes
- program has feedback mechanism
What are the 5 steps in the succession management process
- align succession management plan with organization’s strategy
- establish key positions for succession and skills and competencies to me strategic objectives
- assess relevant employees for performance and potential
- provide developmental opportunities
- monitor/evaluate program
What are the 2 approaches to establish key positions
job based and competency based
What is the difference between performance and potential
performance is behaviour that is relevant to the organization’s goals that can be measured in terms of contributions to the goals
potential means who has the potential to do more
what are 3 ways to evaluate performance
employee performance summary for past year
employee judgement evaluation
employee strengths, areas for improvement
What are 4 ways to evaluate potential
psychological and cognitive capacity (ability to learn faster than peers)
willingness to develop and perform on higher level
significant emotional intelligence
ability to take on new challenges and master them
what are 6 ways to identify potential
from the manager and their direct reports
employee records
industrial psychologists
private consulting firms and public university assessment centres
360 degree feedback
work samples
which 2 domains does a 9 cell table measure and what are the 5 names for how to classify people
performance (low medium high) and potential (low medium high)
future star
current star
ok
dilemma
Bad fit/hire
What are 5 ways to develop high potential performers
job rotations
formal training
mentoring
coaching
promotion
what are 4 issues to succession management
- Fairness
- Equity
- Aging workforce
Changing expectations
what are 4 challenges to succession management
- Assessing potential
- Delivering effective programs
- Maintaining programs through tough economic times
Keeping techniques & tools current & fresh
define merger
the combination of two organizations to create a third organization
what is the difference between a horizontal and vertical merger
horizontal merger merger of two competitors
vertical merger the merger of a buyer and seller or supplier
what is a conglomerate merger
merger of two organizations competing in different markets
what is the target and the buyer in merger/acquisitions
a firm (all or part, stock or certain or all assets and or liabilities) which is the subject of a merger or acquisition attempt and the buyer is the individual or firm who seeks to acquire another
what is a raid in merger/acquisition
buyer swoops in to acquire the target, they may not want to sell under the terms the buyer is offering but they might not be able to fight them at that time
what is a rescue in merger/acquisition
saves a client from trouble
what is a contested situation in merger/acquisition
senior management and the owners disagree on whether to sell merge or other aspect of the deal
what are the 5 reasons do buyers have for a merger
to grow
to produce economies of scale and scope
reduce cost and increase profit
improve operating margins
improve distribution channels
what are the 7 reasons do buyers have for an acquisition
- To grow
- To remove competition
- To get access to new market
- To get “best” product when competitor has better product
- To diversify
- Increase product offerings
- Strengthen sales via staff, relationships, markets
what are 5 reasons a small and medium size private sector organization would sell/merge?
want to stop battling the competition and join them instead
financial hardship
opportunity to capitalize
selling the firm always part of the plan
owner retires
what are 3 reasons an organization in the broader public sector or not for profit would sell/merge?
- Stakeholder pressure
- Increasing competition
- Financial difficulties – decreasing revenues
what are the 3 main benefits for mergers and acquisitions
strategic benefits: growth through strengthen competitive position or access to new customer market
financial: increase owner’s wealth
Ego: meet the management’s needs for power and influence
What is the investment Canada act
regulated foreign purchase of Canadian firms
what is the competition act
allows the government to prevent merger/acquisitions if it would create a monopoly or big reduction in competition
what is the United Nations act/special economic measure act
sanctions Canadians from purchasing foreign firms
what are 3 reasons its important to know about mergers and acquisitions for HR
- a lot of Canadian organizations go through M And A
- increasing level of Canadian firms buying foreign firms
- the more knowledge your HR department has of M and A, the more successful the merger
what are 4 reasons a M and A usually fail
- Organizational culture
- Interpersonal dynamics
- Personal status issues
- Lack of attention to post merger integration
What are 4 reasons M and A more likely to succeed?
when large org absorbs a small one
stock only deals, when they just buy the company shares but leave the operation alone
organizations that comes together that are already similar
when there is an affective plan for integrating the organizations
What are the 4 stages to mergers
stage 1: pre deal
stage 2: due diligence
stage 3: integration planning
stage 4: integration implementation
What is involved in the first stage of the merger: pre-deal
finding compatible business ventures and partners
what is involved in the second stage of merger: due-diligence
ensuring the deal is sound, looking for hidden or potential problems in the target organization
what is involved from an HR perspective in the second stage of merger: due-diligence
going through each HR system (tangible parts of HR) that exists in the target organization
and also the intangible parts like the organizational culture and people factors like roles and attitudes
What are some potential side effects of a lack of due diligence
large loss of talent after deal is announced
long term attrition issue
decrease in productivity
What does stage 3 of the merger process involve: integration planning
planning on how they will integrate the 2 HR systems and also determine how they will deal with culture side, will the target assimilate into the buyer’s culture or 2 separate cultures
What should managers and staff who are involved in mergers/acquisitions have
-strong project management skills
-good decision making skills
-change management experience
What are 4 common issues in the stage 4: integration implementation stage?
- high stress level
-role ambiguity - limited shared history
-culture shock
What are the 6 planning considerations for M and A?
process vs event
time frame
management competencies (making sure HR has the experience and are seen as critical members of senior management)
HR experience
consequences of failures
goals and activities for all phases of merger, pre, during and post
what are some common challenges for mergers and acquisitions
performance decreases
staff resist integration (us vs them mentality)
conflicts arise from job assignments, resources allocation, etc.
What is an HRMS
integrated technology systems that is used to gather, store and analyze information about an organization’s Human Resources
What are some things an HRMS helps HR professional to do
automate and simply tasks
reduce admin and record keeping
keep info up to date
what are the 3 key functions of an HRMS
planning and delivering HR activities
ensuring compliance with laws and regulations
supporting organizational decision making with data analysis
what is involved in the function of planning and delivering Hr activities of an HRMS
staffing (R and s), training, performance managmenets, compensation and benefits
What would be included in the function of ensuring compliance in the HRMS functions
delivering reports for OHS, labour code, pay equity, employment equity etc.
what would be included in the function of data analysis with HRMS
developing scenarios and contingency plans
propose changes to HR policies and programs
what is the evolution of the HRMS
paper based system
basic personnel system
augmented HR systems
comprehensive and interactive HRMS
What are the 3 types of HRMS?
stand alone systems for just HR don’t attach to anything else
HR speciality software for individual HR functions
Enterprise systems: ERP (enterprise resource planning) that integrate HR components with all other aspects of the business
What are 3 trends we are seeing with HRMS
increase use of the cloud and intranets
heightened needs for HR data security
enhanced focus on workforce analytics
What is ESS and MSS
employee self service allows employees to access and manage personal information directly to reduce HR operational cost
management self service * Provides managers direct access to information on employees who report to them, not as popular as ESS
What is an HR surplus
An internal organizational situation that occurs when internal HR supply is greater than internal HR demand; may be permanent or short-term/temporary
define Workforce reduction
Activities that reduce the size of the organization’s workforce (the number of employees or workers) in order to balance HR supply and demand
define downsizing
HR practices that reduce the number of employees
define restructuring
Initiatives that change the structure or design of the organization in response to changes in strategy and/or the external environment
What are 4 reasons for permanent reductions
- demand for company’s products or services has gone down
-the firm has merged with another organization
- the company has decided to outsource a function
-the organization has decided to sell a division or branch of the organization
What are 4 options to permanently reduce the workforce
terminations/permanent layoff
incentives for employees to exit (like early retirement incentives)
attrition without replacement (hiring freeze)
Redeploy to another part of the organization if it is large and demand for it
What are some types of support an employee who is victim to permanent workforce reductions may receive
-everything in the ESA which includes notice or pay in lieu, severance pay which is determined in the individual contact or the collective agreement
-career and job search support
- access to their EAP
- continued access to some of their benefits
what are some examples of how to deal with an employee who is not terminated in a permanent workforce reduction (survivor)
communicate the news early
show respect for employees who are part of reduction
address job security concerns honestly
What are the 9 HR implications with permanent workforce reductions
- Increased need to communicate with employees
- More/different management training
- Increased costs for separation, severance, etc.
- Potential shift from innovation to protectionism
- Reduction in labour/employee relations climate
- Greater staff & manager stress + health issues: Increased use of EAPs, benefit programs, sick leave
- Potential reduced employee morale & engagement ; staff quit & staff
- Financial goals not guaranteed
decline in organizational reputation
When planning permanent workforce reduction, what are some things we should consider?
consider if there is an alternative to termination and lay offs
consider legal consequences (what the ESA states/collective agreement)
if you have to terminate/layoff people identify which jobs will be let go, how many, and which employees
make a schedule for plans and announcement, prepare materialsand brief the management team
treat employees humanely by communicating, providing assistance for displaced workers, and the emotional needs of survivors
What are some reasons for temporary workforce reduction
the operations are seasonal with regular patterns of high and low customer volume
operations is irregular because the business is in a highly volatile market
operations are dependent on suppliers who have weak inventory
operations side of business shutting down temporarily so new machinery can be included on the assembly line
What are 3 options to deal with temporary short term workforce reduction
temporary layoff of a unit or group of employees
reduced work week where each employee works less hours and are paid less, so that the total hours worked equates to a number of FTEs that will make the the hr supply equal demand
Work sharing: 2 or more employees share 1 position
If the firm is looking to temporarily reduce costs with their workforce what does that mean and what are 4 options they can do?
means they want to maintain the size of their workforce but reduce the costs of them
4 options:
-implement pay cut
-encourage employees to take unpaid leave of absence
-remove incentive pay
-cut hours for employees and their pay
What is organizational restructuring
a change process that focuses on redesigning the structure of the organization and may involved elimination the hierarchy or combining functions or roles
What are 3 reasons for restructuring
change in organizational strategy
belief that team member performance will adapt to change and group performance will increase
desire to make organization more innovative or reduce costs
What is the possible impact restructuring could have on HR
new jobs, changing current jobs, new reporting relationships
new job descriptions
new/higher staff performance expectations
less managers, less employees
different KSAs
different training and development
what is outsourcing
when one firm contract with another firm to provide services or products which reduces the number of workers on permanent payroll
What are 2 other names for outsourcing
business process outsourcing (BPO)
and alternative service delivery (ASD)
What are 4 examples for things that could be outsources
payroll
telemarketing
housekeeping
foodservices
what are the 7 reasons for outsourcing
- Strategic focus
- Financial savings
- HR shortage
- Access to advanced technology
- Improved service levels
- Access to specialized expertise
- Organizational politics
What are the 2 HR planning implications of outsourcing
- creates internal HR surplus
* If reason is cost savings & function is currently provided by org employees
If reason is service improvement & service currently provided by organization employees
- solves internal HR shortage
* If reason is expertise and org cannot source, manage, develop, retain employees with expertise
If reason is long term, widespread external shortage of required HR supply and organization cannot source, manage, retain employees with necessary KSAs locally
When an organization chooses to outsource for strategic focus what is their focus on
core competencies
what is a core competence
an internal activity critical to organizational success, which creates a competitive advantage and influences future growth
what are 5 characteristics of core competencies
- Vary according to organization’s mission and vision
- Combination of collective knowledge, technology & management
- Difficult to imitate
- Activities critical to organizational success
- Activities that create current or potential competitive advantage
Does an organization always achieve financial savings through outsourcing
no, ~30% don’t renew a outsourcing contract because they don’t save money, and 40% report higher costs
if a firm chooses to outsource due to an HR shortage, what is the problem they are trying to solve
there is a shortage of certain KSAs in the organization or potentially even in the external labour market, the cost or expense is not the problem
what 2 reasons an organization might outsource because of technology
when the organization cannot retain or find technical talent
when organization cannot afford capital costs of technology
what are the risks and limitations of outsourcing
Cost might out weigh benefits, might end up costing more
short and long term effect on employee morale
might reduce the value of the organization if u outsource too much
What are 4 examples of commonly outsourced HR functions and what could it depend on
depends on strategy, size, history of the firm
examples:
training program delivery
recruitment search
pension and benefits plan
selection: background checks and reference checks
What are the immediate and ongoing HR implications for outsourcing
Immediate:
- Changes to organization structure, authority, reporting relationships
- Often creates internal HR surplus
- Potential negative impact on morale, engagement
Ongoing:
- Manage productivity and effectiveness of outsourced function
- Address team issues re insiders vs outsiders
- Manage organizational culture
