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Strategic human Resources Planning > Final Exam > Flashcards

Final Exam Flashcards

1
Q

What is succession mgmt

A

The systematic process of determining critical roles with the organization, identifying and evaluating possible successors, and developing them for these roles.

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2
Q

Why do organizations have succession mgmt programs?

A
  1. improve internal candidate pools
  2. assure business continuity
  3. reduce skill gaps
  4. retain employees
  5. help individuals realize their career plans within the company
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3
Q

What is replacement planning?

A

The process of identifying short-term and long-term emergency backups to fill critical positions

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4
Q

What are the advantages of internal candidates and advantages of external candidates?

A

Advantages of internal:
1. organizations have more and better info about internal candidates
2. organizations that offer career development and opportunities to internal candidates increase commitment and retention among their employees.
3. Internally developed leaders preserve corporate culture.
Advantages of external:
1. may have better skills to lead the organization through a major transformation or change in strategy
2. The external candidate brings new knowledge and skills to the organization and prevents the organization from becoming inbred and stale

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5
Q

What is the succession mgmt process?

A
  1. Align succession mgmt plans with strategy
  2. Identify the skills and competencies needed to meet strategic objectives
  3. Identify high-potential employees
  4. provide developmental opportunities and experiences
  5. monitor succession mgmt
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6
Q

In the past succession planning only focused on the CEO, now it focuses on what three roles?

A
  1. CEO
  2. Senior mgmt (executives)
  3. Critical roles based on long-term value
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7
Q

Replacement planning has evolved into succession mgmt by:

A
  • Broadening the focus
  • expanding the time horizon
  • creating a talent pool of replacements
  • improving the evaluation system
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8
Q

What happens in step 1 of succession mgmt: align succession mgmt plans with strategy?

A
  • organizations must start with the business plans and strategies
  • using environmental scanning, managers will try to predict where the org will be in 3, 5 or 10 years
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9
Q

What happens in step 2 of succession mgmt: identify the skills and competencies needed

A

the skills and competencies of managers must be identified using the 1. job based approach and 2. company based approach

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10
Q

What is the job based approach?

A

Focus on duties, skills, job experiences and responsibilities required to perform the job

Sometimes not adequate due to rapidly changing jobs.

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11
Q

What is the competency based approach?

A

Focus on measurable attributes that differentiate successful employees from those who are not

produces more flexible individuals

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12
Q

What are some types of competencies?

A
  1. core competancies
  2. role or specific competancies
  3. unique or distinctive competencies
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13
Q

what are core competencies?

A

characteristics, such as thinking skills, that every member of the organization is expected to possess.

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14
Q

What are role or specific competencies

A

characteristics, such as business knowledge, shared by different positions within an organization.

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15
Q

What are unique or distinctive competencies?

A

characteristics, such as expertise in media relations, that apply only to one specific positions within an organization

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16
Q

What happens in step three of succession mgmt: identify high potential employees?

A

Organizations use several approaches to identify managerial talent, including:

  • temporary replacements
  • strategic replacement
  • replacement charts
  • talent mgmt culture
  • replacement tables
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17
Q

What are some mgmt development methods?

A
  • promotions
  • job rotations
  • special assignment and action learning
  • formal training and development
  • mentoring and coaching
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18
Q

What is a promotion?

A

An employees upward advancement in the hierarchy of an organization

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19
Q

What is a job rotation?

A

A process whereby am employees upward advancement in the hierarchy of an organization is achieved by lateral as well as vertical moves.

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20
Q

Moe effective training and development techniques include:

A
  • role playing
  • case studies
  • behavior modelling
  • action learning
  • experiental learning
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21
Q

What are mentors

A

Executives who coach, advise and encourage junior employees

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22
Q

What happens in step 5 of succession mgmt: monitor succession mgmt?

A
  • corporations with successful succession mgmt are higher performers in revenue, growth, profitability and market share
  • HR metrics can be used to help monitor succession mgmt
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23
Q

Some HR metrics for succession mgmt include:

A
  • increased engagement score
  • increse positive perceptions of development opportunities
  • high potential employees perceptions of the succession mgmt process
  • higher participation in developmental activities
  • greater numbers involved in the mentoring process
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24
Q

What are HR metric lag measures

A

Only useful in they are compared to benchmarks from the previous year:

  • increased avg number of candidates
  • reduced avg # of positions having no identified successors
  • increased % of managers with replacement plans
  • increased % of key positions filled according to plans
  • increased ratio of internal hired to external hires in key positions
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25
Q

What are the employees roles in succession mgmt?

A
  • participating to replace the top-down approach
  • employee commitment and ownership to the plans
  • employees have a voice in the process
  • employees must realize their relationship within the organization is not static
  • the implied employment contract once thought to protect employees is no longer valid
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26
Q

What are risks to the organization in the talent mgmt process?

A
  1. vacancy risk
  2. readiness risk
  3. transition risk
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27
Q

What is a vacancy risk?

A

Organizations that are unable to fill key vacant positions quickly with effective leaders may suffer business losses and/or an inability to move forward on strategic goals

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28
Q

What is readiness risk?

A

HR must develop employees so that when opportunities arise, there are qualified and motivated personnel in place

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29
Q

What is a transition risk?

A

In addition to preparing employees for key roles, HR must develop programs to retain key employees, and to monitor competitors and other to be able to quickly identify candidates.

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30
Q

What is information technology(IT)?

A

All of the hardware and software, including networking and communication technologies

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31
Q

What is E-learning?

A

The process of learning contents distributed in digital format via computers over the internet or other network.

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32
Q

What are enterprise portals?

A

Knowledge communities that allow employees from a single or multiple companies to access and benefit from specialized knowledge associated with tasks.

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33
Q

What is self-service?

A

A technology platform that enables employees and managers to access and modify their data via a web browser from a desktop or centralized kiosk

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34
Q

What is business intelligence?

A

The applications and technologies for gathering, storing, analyzing, and providing access to data to help users make better business decisions

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35
Q

What is workforce analysis

A

Statistical modelling and software for gathering information about employees and work in order to optimize the use of human resources in the organization

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36
Q

What are some uses of workforce analytics?

A
  • predicting the probable success of a candidate
  • identifying and quantifying the physical risks to employees
  • identifying work force characteristics that contribute to fraud
  • measuring employee engagement and predicting turnover
  • identifying obsolete departments and or positions
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37
Q

What is the definition of Human resources information system (HRIS)

A

A comprehensive across-the-board software system for HRM that includes subsystems or modules

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38
Q

What are specialty products?

A

Software solutions for specific specialized applications that may or may not interface with the main database

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39
Q

What is the definition of Enterprise resource planning (ERP)

A

Commercial software systems that automate and integrate many or most of a firms business processes

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40
Q

What is rational database?

A

A database that can share information across multiple tables or files, which allows the same information to exist in multiple files simultaneously

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41
Q

What is cloud computing?

A

Storing and accessing data and progress over the internet instead of a computers hard drive.

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42
Q

What are the advantages for HR using cloud solutions?

A
  1. economies of scale and therefore reduced costs are achieved through many users and standardizations
  2. staff training is simplified. access to the cloud is through the web browser and updates occur automatically. the provider answers questions and offers support through videos and chats
  3. Scalability is possible; a regular IT department may not be able to handle rapid changes, such as surges in hiring cycles. The cloud can handle normal day to day transactions as well as peaks in demand
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43
Q

What are the stages of HR technology adoption?

A
  1. companies simply codify employee data such as name, job, compensation, etc.
  2. the basic data is supplemented by data pulled from other sources, such as performance ratings and training outcomes
  3. employees are given access to their data and can update or edit their profiles. they can also access career trajectories, and indicate career preferences
  4. data mining stage. organizations use stats, such as turnover data by occupation to predict employee behaviour, and link it to organizational outcomes
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44
Q

What is a scripted demo?

A

An in person demonstration of the product that follows a clear agenda that you have prepared for the vendors

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45
Q

What is business process re-engineering?

A

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

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46
Q

What is technology acceptance?

A

Extent to which users intend or actually use technology as a regular part of their job

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47
Q

What is knowledge management

A

a systematic and organizationally specified process for acquiring, organizing, and communicating both tacit and explicit knowledge so that employees may make use of It to be more effective and productive in their work

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48
Q

What can IT do for HRM

A
  • Can help project supply and demand for HR
  • can support succession planning and career development plans
  • provides powerful storage and retrieval capabilities
  • provides tools for workforce analysis
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49
Q

What are typical HR functions with high IT support

A
  • data storage: wages, vacations, sick time
  • transferring data from HR to payroll
  • generating organizational charts
  • posting job openings
  • tracking labour costs
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50
Q

What are some typical HR functions with low IT support?

A
  • employee career development
  • employee ergonomic assessments
  • measuring diversity needs and results
  • self service or menu-driven employee benefits
  • online delivery of employee assistance programs (EAPs)
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51
Q

What is web based HR

A
  • allows service delivery that pushes employees and manages into making transactions
  • self service is an important web based service delivery model such as online access to
  • e-recruiting and learning are highly visible applications
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52
Q

What HR planning functions does IT support?

A
  • workforce analytics
  • workforce management and scheduling
  • forensic reporting
  • skills inventories
  • replacement charts
  • succession management
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53
Q

What is forensic reporting

A

A detailed technical anlaysys of data that leads to conclusions about why certain behaviours occur within the HR function.

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54
Q

What are skills inventories

A

Typically contain a personal record or skills profile of each member of the workforce

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55
Q

What are replacement charts

A

support the process of finding replacements for key managerial positions

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56
Q

What is the typical information on a replacement chart

A
  • predicted departure dates
  • shortlist of possible successors
  • performance appraisal information
  • how ready successors mightt be as replacements
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57
Q

How can IT be used in succession mgmt

A

the process relies on intensive information like competancies, talent pools, developmental plans, performance assessments, and developmental opportunities

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58
Q

HRIS includes subsystems or modules such as:

A
  • recruitment and selcetion
  • time and attendance mgmt
  • payroll
  • training and development
  • pension administration
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59
Q

What are the steps to select HRM technology solutions

A
  1. conduct a needs analysis
  2. explore the marketplace
  3. request for proposal
  4. evaluate vendors and products
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60
Q

Typical questions for a needs analysis include:

A
  • Is the HR dept. spending too much time on manual processing
  • Are there data security risks?
  • Is the current HRM system obsolete?
  • Are we mining redundant info?
  • Are we managing our human capital strategically?
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61
Q

What is a scripted demo used for?

A

To evaluate both the vendor and the software product

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62
Q

What are some IT implementation pitfalls?

A
  • Size and complexity of project
  • lack of technical knowledge
  • lack of knowledge on new technologies
  • project no longer needed
  • unrealistic expectations
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63
Q

What are the rules when it comes to ensuring data security?

A

Rule 1: Info should only be used for the purpose for which it was obtained or compiled
Rule 2: Only authorized persons should have access to employee data

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64
Q

How do companies know if the IT is contributing to competitive advantage?

A
  1. Develops firm-specific competencies
  2. Produces complex social relationships
  3. Generates tacit organizational knowledge
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65
Q

What are some sample technology effectiveness items?

A
  • Attitude
  • usefulness
  • information satisfaction
  • system satisfaction
  • information quality
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66
Q

What is the definition of an open system?

A

A system that receives inputs from its external environment

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67
Q

What is single loop learning

A

the attempt to solve a problem using a single strategy, without examining the validity of the problem itself

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68
Q

What is double loop learning?

A

A method of learning that involves questioning current assumptions, examining a problem from different perspectives, and questioning the validity of the problem

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69
Q

What is the model of change?

A
  1. recognize the need to change
  2. diagnose what needs to change
  3. plan and prepare for change
  4. implement the change
  5. sustain the change
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70
Q

Define social networks?

A

The networks of ties that an individual has with other individuals

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71
Q

Define force field analysis

A

A framework for analyzing a problem that seeks to identify all the relevant factors and stakeholders that are acting to either sustain the current state or to move away from the current state

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72
Q

What are the fore field analysis steps?

A
  1. describe the current state and why it must be changed
  2. describe the desired future state
  3. identify the forces that are supporting or driving toward increasing team coherence as well as the forces that are restraining or preventing increased team coherence.
  4. examine the valence of each of these forces. which are the strongest and weakest
  5. develop strategies to reduce the strength of the restraining forces and strategies to amplify the driving forces.
  6. implement the strategies developed in strep 5
  7. develop strategies to stabilize the driving and restraining forces into a new state of quasi-equilibrium
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73
Q

Define action research

A

An iterative trial-and-error process of discovery that involves diagnosing a problem, planning a solution, acting on the solution, evaluating the results of the actions, learning from the outcomes, and asking new questions

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74
Q

Define unfreezing

A

As the initial stage of organizational change, unfreezing involves the development of a shared understanding among stakeholders that a particular change is necessary

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75
Q

What three conditions does unfreezing require to unfreeze current behaviours?

A
  1. Disconfirmation of the validity of the status quo
  2. Inducing survival anxiety
  3. Creating psychological safety
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76
Q

Explain disconfirmation of the validity of the status quo

A

Essentially this means that stakeholder myst be convinced that the current modes of behaviour and way of doing things are no longer successful paths to achieving goals.

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77
Q

explain inducing survival anxiety

A

Individuals and groups must develop a sense of survival anxiety, or pressure to change, in order to overcome resistance and to move away from current behaviours and toward new learning and new beahviours

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78
Q

explain creating psychological safety

A

Psychological safety is the belief that an individual can take certain risks and openly discuss workplace issues without fear of reprisal or threat to mental well-being

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79
Q

Define moving

A

As the second stage of a change process, the moving stage involves the trial-and-error process of taking action to move the firm through the intended change

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80
Q

Define refreezing

A

The third and final stage of a change initiative, refreezing involves putting policies, practices, and structures in place to establish new norms around the change

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81
Q

Define the chaos theory

A

Complex systems are based on some form of order, but can behave in unpredictable ways. The unpredictability of these systems results from the many interactions of the system variables and the consequences of differences in the initial states of those variables

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82
Q

Define organizational learning

A

An approach to learning that applies double loop learning and an attempt to understand how the entire system may be affected by change. Organizational learning allows knowledge from any individual in the organization to become incorporated into the firms culture and processes

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83
Q

Define personal mastery

A

The understanding of ones purpose and the development of a personal vision

84
Q

Define mental model

A

An internal representation of the way things work. Mental models influence the causal attributions that we make

85
Q

Define team learning

A

The interaction of individual ideas and efforts toward a team objective that result in outcomes that exceed the capabilities of any individual on the team

86
Q

Define systems thinking

A

Systems thinking views change issues within the framework of the entire organization. This view helps to understand the underlying causes of problems and the potential outcomes of change initiatives

87
Q

Why is organizational change important?

A

It lies at the heart of the planning process and organizations are dynamic, constantly growing or contracting and responding to changes

88
Q

Why is there an increasing pace of change in todays business environments?

A
  • Higher levels of uncertainty
  • competitive advantage
  • important mgmt role is to create a direct strategy and manage change
89
Q

Define an organizational level of change

A

Occurs in response to societal, industrial and firm level developments

90
Q

define societal level change

A

Economic and environmental issues are strong drivers of change

91
Q

Define Industrial levels of change

A

Change typically follows an S-curve pattern

92
Q

Define a firm level change

A

Occurs largely as a result of demands from stakeholders

93
Q

What % of organizational change fails

A

70

94
Q

What is the importance of feedback

A

Open systems are input throughout output systems so they take or receive inputs from their environment, transform or convert those inputs, and output the finished products or services back to the envrionment

95
Q

Define negative feedback

A

Information that tells whether the system is achieving its goal

96
Q

Define positive feedback

A

Info that a system used to determine if its purpose is suited for its environment

97
Q

Explain single loop learning

A

Identifying and correcting errors, can impede change efforts particularly when change requires new or different goals

98
Q

Explain double-loop learning

A

Encourages participation in decision making and open expression of conflicting views, using valid information, and widespread and open testing of evaluations

99
Q

What is the success of organizational change dependant on?

A
  • Methods of feedback that organizations use
  • validity of info gathered and shared
  • alignment of foals to the organizations purpose and to the change implementation
  • extent to which double-loop learning is fostered
100
Q

explain Step 1 of the model of change: recognizing the need for change and starting the process

A

One of the most difficult stages. requires that a need to change is identified. also that the need is broadly felt among all participants. Without full buy-in from all stakeholders, change efforts are likely to fail.

101
Q

Explain step 2 of the change model: Diagnosing what needs to be changed

A

Examining: the leadership of the change process, overall purpose of the change, and degree of planning involved in the change process

102
Q

Explain step 3 of the change model: Planning and preparing for change

A

Change intervention that is most successful depends on:

  • organization culture
  • leadership
  • timeline available for the change to be implemented
  • purpose of the change
103
Q

Explain step 4 of the change model: implementing the change

A

successful change leaders use complex social networks and their political skills to achieve their desired outcome

104
Q

Define political skills

A

The ability to persuade, manipulate, and negotiate to achieve a particular outcome

105
Q

Explain step 5 of the change model: sustaining the change

A
  • must fit within the organizational culture
  • must be incorporated into existing mental models of how things work in the organization
  • sustaining change require measures to provide feedback
106
Q

What is the planned model of change?

A
  • Kurt Lewin developed 3 step model in 1940’s
  • 4 elements:
  • field theory
  • group dynamics
  • action research
  • The three-step model
107
Q

What is the element field theory in Lewin model of change?

A

An attempt to understand and change perceptions or behaviours by understanding what forces act upon those individual. Forces being what Lewin calls life-space which are their needs, goals and intentions. Change can be made by altering these forces in the life space.

108
Q

what is the purpose of the force-field analysis in Lewis model?

A

to anlayze a condition and to plan corrective actions

109
Q

Explain group dynamics in Lewis change model.

A

Groups can be random or formed for specific purposes but it is show that they form norms that specify what kinds of behaviours are expected or permitted in the group and people put aside their individual norms to fit into the group

110
Q

Explain action research

A

change is most likely to succeed when stakeholders are involved. 3 steps of change are:

  • unfreezing
  • moving
  • refreezing
111
Q

What is emergent change?

A

considers the chaotic nature of change by applying chaos theory to models of organizational change because not all change is initiated at the top of the org or planned

112
Q

What are the elements of organizational learning?

A
  • personal mastery
  • mental models
  • building a shared vision
  • team learning
  • systems thinking
113
Q

Define shared vision

A

“what do we want to create”

114
Q

Define flexibility

A

The ability to respond to various demands from a dynamic competitive environment

115
Q

What are the key challenges HR managers face when their organization expands across national borders

A
  • Workforce diversity
  • employment legislation
  • the role of the HR function
  • flexibility
  • security
116
Q

Define strategic international HR planning

A

Projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish global competence pools with companies

117
Q

Define strategic international HRM

A

Human resources management issues, functions, policies, and practices that result from the strategic activities of multinational enterprises and that affect the international concerns and goals of those enterprises

118
Q

Define fit

A

The degree to which the needs, demands, goals, objectives, and/ or structure of one component are consistent with the need, demands, goals, objectives, and/ or structure of another component

119
Q

Define domestic strategy

A

Internationalizing by exporting goods abroad as a means of seeking new markets

120
Q

Define multi domestic strategy

A

A strategy that concentrates on the development of foreign markets by selling to foreign nationals

121
Q

Define adaptive IHRM approach

A

HRM systems for foreign subsidiaries that will be consistent with the local economic, political, and legal environment

122
Q

Define multinational strategy

A

standardizing the products and services around the world to gain efficiency

123
Q

Exportive IHRM approach

A

Transferring home HRM systems to foreign subsidiaries without modifying or adapting to the local environment

124
Q

Define global strategy

A

Introducing culturally sensitive products in chosen countries with the least amount of cost

125
Q

Define integrative IHRM approach

A

Combining home HR practices with local practices and selecting the most qualified people for the appropriate positions no matter where these candidates come from

126
Q

Define home country nationals (HCNs)

A

Individuals from the subsidiary country who know the foreign cultural environment well

127
Q

Define parent-country nationals (PCNs)

A

Individuals form head-quarters who are highly familiar with the firms products and services, as well as with its corporate culture

128
Q

Third-country nationals (TCNs)

A

Individuals from a third country who have intensive international experience and know the corporate culture from previous working experience with corporate branches in a third country

129
Q

Define trainability

A

An individuals ability to acquire certain skills to a desired level of performance

130
Q

What five points should be empathized for effective pre-assignment training

A
  1. Assess and evaluate the needs of training for expatriates
  2. Clarify the purpose and goals of training that are relevant and applicable to participants daily activities
  3. plan and design the training programs to meet training goals
  4. implement the training plan
  5. use several techniques to increase the effectiveness of training programs
131
Q

Define repatriation

A

the process of PCN’s, TCNs or even HCNs returning to their home headquarters or home subsidiaries

132
Q

Workforce diversity issues in Canada include:

A
  • Increased number of older workers
  • employees with disabilities
  • gender issues
  • ethnic cultural differences among employees
133
Q

Why is employment legislation an issue for HR managers when crossing national borders?

A

Mgmt is faced with a complex legislation framework, when crossing national borders, Canadian HR managers encounter additional, host-country employment legislation.

134
Q

Why is the role of the HR function an issue when HR mgmt crosses national borders

A

Because HR departments are often understaffed, underfunded and limited to a supporting role with little key decision-making power so the increased complexity of the HR function requires HR managers to redefine their role and outsources some of their responsibilities to specialistsand consultant ( international employment lawyers)

135
Q

Why is security an issue for HR managers when crossing national borders?

A

Business environments are becoming increasingly unsafe and so it is important to consider the security of employees overseas.

136
Q

SIHRM policies should include:

A
  • Risk assessments
  • precautionary measures
  • safety procedures
  • contingency plans for employees and their families
137
Q

What are essential Canadian government representatives to establish a relationship with?

A
  • embassies
  • chambers of comerce
  • consulates
  • high commissions
138
Q

Define internal fit

A

Focuses on organziation

139
Q

Define external fit

A

focus on local environment

140
Q

What are the four corporate international business strategies

A
  1. Domestic strategy
  2. Multidomestic strategy
  3. Multinational strategy
  4. Global strategy
141
Q

Define expatriate

A

Any individual who gives up residence in his/her home country to take up residence in a foreign country either temporarily or permanently

142
Q

What is the selection criteria of global managers?

A

The five-factor personality model includes:

  1. emotional stability
  2. extraversion
  3. openness
  4. agreeableness
  5. conscientiousness
143
Q

What are other personal characteristics of global managers?

A
  1. self-maintenance competencies: deal with alienation and isolation
  2. relationship competencies: capabilities to develop and maintain relationships with HNCs
  3. Perceptual competenciesL capacity to understand why foreigners behave the way they do
144
Q

What is cross-cultural training (CCT)

A

Part of the pre-assignment training process, positively influences expatriate self-developments, interpersonal skills, and cross-cultural perception

145
Q

Define reverse culture shock

A

Feelings of anxiety, uncertainty, and disorientation upon reintegration into ones home country and culture

146
Q

What are the two primary issues related to career development for global managers?

A
  1. The international assignment is ONLY one step in the career development plan
  2. With subsequent assignment, it is important to make use of the KSAO’s developed internationally
147
Q

Post-assignment performance appraisal should be developed prior to the assignment and is based on what two broad categroies

A
  1. technical/staff specialist

2. managerial

148
Q

What are some special considerations for performance appraisals post-assignment

A
  • know the extent of the interaction the position requires
  • know the differences in accounting between countries
  • know the volatility of the foreign labour market
  • know the common problems with telecommunications and transportation
149
Q

International compensation typically includes:

A
  • expenses of expatriates and their families
  • goods and services
  • housing
  • income taxes
  • reserve
  • shipment and storage
150
Q

What are the international rates of unionization:

A 
Sweden: 68%
Denmark: 67%
Canada: 27%
Germany 17.7%
Japan: 17.8%
United States: 10.8%
151
Q

What are the different types of unions in a country

A

Industrial
Craft
Conglomerate
General

152
Q

define horizontal merger

A

the merging of two competitors

153
Q

define vertical merger

A

the merger of a buyer and seller or supplier

154
Q

define conglomerate merger

A

the merger of two organizations competing in different markets

155
Q

define consolidation

A

the joining of two or more organizations to form a new organization

156
Q

define takeover

A

one company acquiring another company

157
Q

define operating strategy

A

the cost reductions achieved by economies of scales produced by a merger or acquisition

158
Q

define vertical integration

A

the merger or acquisition of two organizations that have a buyer-seller relationship

159
Q

define horizontal integration

A

the merger or acquisition of rivals

160
Q

what are the financial benefits of a merger

A
  • organizations need to reduce the variability and risk of their cash flow
  • organizations often use “cash cows” to fun “star” operation
  • all growth strategies have different tax implications
161
Q

What are some reasons for failures of mergers and acquisitions?

A
  • Integration difficulties
  • inadequate evaluation of target
  • large or extraordinary debt
  • inability to achieve synergy
  • too much diversification
162
Q

What is the impact on HR during, before or after a merger?

A
  • Lower productivity
  • sabotage
  • stress and anxiety
  • survival tactics
  • higher turnover
163
Q

define culture

A

the set of important beliefs that members of an organization share

164
Q

What are the four M&A culture options

A
  • cultural pluralism: the partners co-exist
  • cultural integration: the partner organizations blend current cultures together
  • cultural assimilation: one company (usually the acquirer) absorbs the other
  • cultural transformation: the partner companies abandon key emergents of their current cultures and adopt new norms
165
Q

What steps should be taken to merge two cultures

A
  • Deploy role models: those in highly visible positions of authority should exemplify the new and desired behaviours
  • Provide meaningful incentive: shower the role models and employees who replicate the desired behaviours with quick and visible rewards
166
Q

What are the HR planning steps in a M&A

A
  1. The contingency plan
  2. HR due diligence
  3. Transition team
167
Q

From an HR perspective, the due diligence would include a review of what?

A
  • collective agreements
  • employment contracts
  • benefit plans and policies
  • incentive, commission and bonus plans
  • pension plans and retirement policies
168
Q

Why is a transition team necessary for a M&A?

A

Urgency of the M&A situation, the information gaps and the employee stress

169
Q

After reviewing each companies HR policies there may be three types of situations:

A
  • Complimentary: one company might focus on career development, while the other focuses on benefits
  • duplicated: both companies have identical human resources information systems
  • Contradictory: one organization used the performance management system for career development while the other uses its system to support incentive pay programs, by measuring employee productivity to determine bonuses or merit pay
170
Q

Employees who stay with the newly acquired or merged company face several fates:

A
  • demotion: under the new organizational structure, some employees are given less responsibility, less territory or fewer lines due to amalgamation
  • competition for the same job: some companies force employees to compete for their old jobs by having to apply as new candidates for a position
  • termination: if not successful in the competition, employees are then let go
171
Q

Define acquisition

A

the purchase of an enitre company or a controlling interest in a company

172
Q

What are the needs of the CEO or managing team

A
  • managers may pursue their personal interests at the expense of stockholders
  • often the motives of executives can be deemed unconcious
173
Q

What are some merger methods?

A
  • Hostile takeovers: dramatic and complex; one company takes over control of another
  • poison pills: refers to the right of key players to purchase shares in the company at a discount, making the takeover extremely expensive
  • white knights: buyers who will be more acceptable to a targeted company
  • pac-man: a defensive manoeuvre where the targeted company makes a counteroffer for the bidding firm
174
Q

What is the success rate of mergers??

A

15%

175
Q

What is the financial impact of M&A?

A
  • esitmated financial returns are rarely realized
  • many mergers fail bc the buyer overextends itself financial with high debt loads and then must apply cost-cutting measures to service the debt
  • some forecast Economies of scale are never achieved
176
Q

What are some cultural clarification activity questions

A
  • How do we view our organizations culture?
  • How do we view the other sides culture?
  • How do we think the other side views our culture?
177
Q

What should the contingency plan include?

A
  • should identify the contact person and the merger coordinator
  • should outline the chain of command, communication methods, procedures, and negotiation skills training
178
Q

What are the goals of the transition team?

A
  • retain talent
  • maintain productivity (both quality and quanitity)
  • select individuals for the new organizations
  • integrate HR programs
  • begin the process of integrating cultures
179
Q

What functions of HR do mergers affect?

A
  1. selection
  2. compensation
  3. performance appraisal
  4. training and development
  5. labour relations
180
Q

How do mergers affect the selection process?

A
  1. retention
  2. reduction
    cuts to the workforce result in greater work overload and stress
181
Q

What are the compensation decisions for the merged company?

A
  1. Merge compensation systems?
  2. Adopt a new compensation system?
  3. Create a ew compensation system?
182
Q

Post merger performance appraisal can be modelled into what three categories?

A
  1. not knowing: remedied by communication
  2. not able: solution is training
  3. not willing: a strong case for performance management through feedback incentives
183
Q

How does merging affect training and development?

A

Mgmt and peers may need additional training in the role of coach and counsellor to deal with post merger behaviours
-employees need training for stress reduction and relaxation techniques

184
Q

How do mergers affect labour relations

A
  • At a minimum the collective agreement must be read to determine what provisions exist for job security and what the notification periods are for layoffs and terminations
  • collective agreements need to be renegotiated to protect the rights of employees or management that belong to unions
  • early union participation helps the merger process go more smoothly because unions make valuable contributions
185
Q

Define outsourcing

A

a contractual relationship for the provision of business services by an external provider

186
Q

What should an organization outsource?

A
  • rule based activities
  • repetitive activities
  • frequently undertaken activities
  • predictable activities
  • able to fully or partly be automated by technology activities
187
Q

What are some HR functions that may be outsourced?

A
  • compensation
  • training
  • recruitment and selection
  • Health and safety
188
Q

How are core functions defined?

A
  • Activities traditionally performed internally
  • activities critical to business success-core work contributes directly to the bottom line non-core work doesn’t
  • activities creating current or potential competitive advantage
  • activities that will influence future growth or rejuvenation
189
Q

What are the steps in preparing for outsourcing?

A
  • Develop meaningful benchmarks and data
  • develop change mgmt skills
  • develop contract and performance mgmt
  • develop communication channels and skills
190
Q

How does an organization select a vendor for outsourcing?

A
  • Inform the staff of the affected function
  • Prepare a request for proposal (RFP)
  • Invite internal and external bids
  • Establish a team to evaluate these bids
191
Q

Define request for proposal (RFP)

A

Describes the responsibilities to be outsourced and invites potential providers to present their proposal for carrying out the job

192
Q

What is the criteria for evaluating potential outsourcers

A
  • HR process expertise
  • Prior experience and track record
  • financial stability
  • service-level agreements in the contracts and compatibility of standardization
  • leading-edge technology and commitment to invest in more
193
Q

What are the most frequent causes of outsourcing problems?

A
  • Poor service definition

- Weak mgmt processes

194
Q

What is HRO or HR offshoring?

A

Occurs when outsourcing is done in a foreign country

195
Q

What are the six major reasons for outsourcing?

A
  1. financial savings
  2. strategic focus
  3. access to advanced technology
  4. improved service levels
  5. access to specialized expertise
  6. organizational politics
196
Q

What are the financial savings from outsourcing?

A
  • cost reduction from 10 to 20%
  • economies of scale from specialized outsources who are more efficient
  • cost control
  • decreased capital commitments
197
Q

What is the strategic focus of outsourving

A

decision to focus on specific core competencies
move secondary functions or (non-core work) to firms that do these things well (they are core competencies for the outsourced firm)

198
Q

What is the rationale for advanced technology for outsourcing

A
  • technolonfy has been a main drive of outsourcing

- technology enables a company to reduce transaction time

199
Q

What does it mean by improved service when outsourcing?

A

Outsource companies are excellent performers

-improves response time, performance and confidentiality

200
Q

What are some outsourcing risk and limitation questions to consider

A
  1. what are the anticipated benefits realized?
  2. what are the risks to service levels?
  3. what is the effect on employee morale?
  4. does outsourcing reduce the value of the organization?
201
Q

What are the projected benefits vs actual benefits of outsoruving

A
  • not as cost effective and problem free as expected
  • 50% fourd more expensive to outsource
  • about 30% of outsourcing contracts are not renewed
202
Q

What is the fear of outsourcing from a view of employee morale?

A
  • losing their jobs
  • being forced to work for a vendor
  • fear that mgmt believes outsiders are more competent
203
Q

How will outsourcing be managed

A
  • Selecting the vendor
  • negotiating the contract
  • monitory the arrangement
204
Q

What happens in negotiating the contract?

A
  • establish benchmarks for service expectations:
  • response time
  • response cost
  • customer satisfaction ratings
205
Q

How do companies monitor the arrangement?

A
  • establish a relationship with the outsourcer
  • check their references
  • demand frequent and accurate reporting
  • conduct internal and external client satisfaction surveys

Strategic human Resources Planning (2 decks)

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