HR Expertise: Organization

Question 1

Centralized HR

Answer 1

aka corporate HR. The function resides at the corporate level, where department members set consistent policies and standards for the entire firm. The main drawback is that it can be too rigid and not account for the nuances of individual company locations.

Question 2

Decentralized HR

Answer 2

when the HR function is housed at the local level. Because each site will be able to create policies and standards that work best for them, there will be little consistency among locations.

Question 3

Leading indicators

Answer 3

Anticipate, precede, and predict future performance. For example, a leading indicator could be foreseeing the amount of time to fill key role vacancies to ensure a qualified and efficient workforce.

Question 4

Lagging indicators

Answer 4

Measure the result of a process or change and often gain more consideration because they analyze revenues that executives use to measure success.

Question 5

Balanced scorecard

Answer 5

Reflects the vision and strategy for this success from the financial outlook, customer perspectives, and internal business processes.

Question 6

Propinquity or proximity theory

Answer 6

based on geography

Question 7

Exchange or benefit theory

Answer 7

based on rewards

Question 8

Balance theory

Answer 8

based on similar attitudes or interests

Question 9

Activity theory

Answer 9

based on occupational task

Question 10

Three types of formal groups

Answer 10

 Command groups – departments on an organizational chart

 Task groups – working collaboratively toward a common task

 Functional groups – created to accomplish specific goals and objectives for an unspecified period of time.

Question 11

Group development stages (5)

Answer 11

 Forming – this entails superficial introductions and determining boundaries of acceptable behavior
 Storming – this is the most difficult stage. The team must work through conflicts related to authority, vision and values, personality, and cultural differences. The amount of work often seems overwhelming at this point, and team members struggle to listen to the opinions and experiences of others. If quality improvement processes are implemented and there is good communication, however, these barriers can become beneficial later on.
 Norming – this entails greater cooperation and more cohesion as the team establishes norms for assignment completion, decision-making, and conflict resolution. There are three parts to norming: reducing conflicts as the team becomes more relaxed; developing a routine through scheduled events, such as meetings; and facilitating cooperation through team-building events.
 Performing – this involves effective and unified team performance as the team addresses its objectives. Conflicts are mostly resolved, and the team has a clear purpose and structure.
 Adjourning – this is the process of ending the group. Group members say goodbye to each other. Good closure is important.

Question 12

Task cohesion

Answer 12

defines how well a group works together to accomplish goals

Question 13

Social cohesion

Answer 13

defines the sense of belonging held by members of the group.

Question 14

Five types of Organizational Design Structures

Answer 14

1. Customer Organizational Structure
2. Functional Organizational Structure
3. Divisional Organizational Structure
4. Matrix Organizational Structure
5. Geographic Organizational Structure

Question 15

Customer Organizational Structure

Answer 15

Often seen in health care, this structure is utilized by firms that provide a service. It organizes departments to provide specialized solutions to different customer segments.

Can provide exemplary customer care, but can also pose problems for the organization. Each customer division will have its own rules and processes that can lead to duplication of efforts or conflicting systems.

Question 16

Functional Organizational Structure

Answer 16

Organizes firm departments based on their function or what they do for the company.

Promotes the development of experts in their fields, ensures employees work in their areas of expertise, and is easy to understand. However, there is little cross-department collaboration and enacting change may be difficult.

Question 17

Divisional Organizational Structure

Answer 17

Vertical/similar to functional structure.

Some collaboration within each division, making the structure less siloed. Faster decision-making. Could also lead to duplication of efforts, hoarding of resources by each division, and potential competition for customers.

Question 18

Matrix Organizational Structure

Answer 18

Combines functional and product departmentalization. Employees ore departments will report to both product and functional managers that are responsible for performance. One manager may be more administrative focused on a core business unit (e.g. HR, IT, or finance) whereas the other is typically involved with product, service, customer, or location.

Best for uncertain environments that deal with constantly changing products and/or a strong focus on the customer experience.

o Pros: support functional and divisional partnership. Technical expertise is paired with marketplace responsiveness.
o Cons: reporting relationships may cause confusion, resulting in increased stress and lower performance levels.

Question 19

Geographic Organizational Structure

Answer 19

The firm organizes their business functions or departments based on their geographic location.

Question 20

 Five designs influencing organizational structure

Answer 20

1. Departmentalization
2. Delegation of authority
3. Span of control
4. Division of labor
5. Coordinating mechanisms

Question 21

Markov Analysis

Answer 21

An example of probabilistic forecasting. Tracks the movement of employees among different job classifications to forecast the movement among departments, operating units, salary levels, or from one category to another.

Question 22

Delphi Technique

Answer 22

Consists of having experts provide their best estimates of future needs based on questionnaires and interviews. An intermediary will collect results and provide a summary or report to the experts. If an expert feels differently than the findings of the group, he or she is asked to justify his or her views so the intermediary can revise and redistribute reports.

Question 23

Four analytical steps in workforce planning

Answer 23

1. Supply model analysis – reviews an organization’s current labor supply
2. Demand model analysis – estimates future business plans and objectives
3. Gap analysis – compares the variances in the supply and demand models to identify skill surpluses and deficiencies
4. Solution analysis – focuses on how to tackle gaps in current and future staffing needs through recruiting, training and development, contingent staffing, or outsourcing.

Question 24

Steps for joining two companies (7)

Answer 24

1. Develop a workforce integration project plan
2. Conduct a HR due diligence review
3. Compare benefits programs
4. Compare the compensation structures
5. Develop a compensation and benefits strategy for integrating the workforce. Any reduction in pay or benefits must be explained and justified relative to the strategy or economic conditions. It’s best to minimize changes and act quickly.
6. Determine leadership assignments.
7. Eliminate redundant functions. The best people should be retained, and the remainder should be laid off, with careful consideration given to avoid adverse impact and WARN Act violations.

Question 25

Steps for conducting a layoff or reduction in force (7)

Answer 25

1. Select employees for layoff using seniority, performance, job classification, location, or skill.
2. Ensure selected employees do not affect a protected class to avoid adverse or disparate impact.
3. Review compliance with federal and state WARN Act regulations
4. Review compliance with the Older Workers Benefit Protection Act
5. Determine if severance packages including salary continuation, vacation pay, employer-paid COBRA premiums, outplacement services, or counseling might be available to affected employees.
6. Be empathetic, have tissues, ensure that all required documentation is available to the employee, and review all information in detail when conducting meetings with employees.
7. Inform the current workforce by communicating sustainability concerns, methods used to determine who would be selected for the reduction in force, and commitment to meeting company goals and objectives to maintain morale and productivity.

Question 26

Three types of labor unions

Answer 26

1. Local Unions
2. National or International Unions
3. Federation of Unions

Question 27

Business representative in a union

Answer 27

performs a critical role in contract negotiations, grievance proceedings, and managing union headquarters.

Question 28

Union steward in a union

Answer 28

represents member interests and relations with a company

Question 29

5 union practices considered unfair by the Taft-Hartley Act (or the Labor Management Relations Act - LMRA)

Answer 29

1. It’s unfair for a union to force an employee to join or take part in a union or force an employee to accept a particular representative.
2. It is unfair for a union to refuse to bargain with the representative of an employer or restrict the ability of an employer to negotiate a contract and enforce that contract.
3. It is unfair for a union to call for an employer to discriminate against employees that are not part of a particular union or that speak out against a union.
4. It is unfair for a union to encourage individuals outside the organization to take part in a secondary boycott or encourage employers to enter into a hot cargo agreement.
5. It is unfair for a union to charge unreasonably high membership fees.

Question 30

Conspiracy doctrine

Answer 30

used when employers charge that labor unions are illegally conspiring in restraint of trade. Court findings have ruled that labor unions may be found guilty of conspiracy if objectives or the methods used to achieve objectives are illegal, but the actions of collectively striking or bargaining to raise wages are not illegal.

Question 31

Court injunctions

Answer 31

judge-issued orders against a person or group of people to cease the pursuit of a particular action, often to protect property rights from irreparable damages.

Question 32

Yellow-dog contracts

Answer 32

written statements employers required workers to sign during the application process to confirm that individuals were not members of a union, that they accepted the company as a nonunion employer, and that they would not encourage or join in union-related activities.

Question 33

Sherman Antitrust Act of 1890

Answer 33

established to oppose oppressive business practices associated with monopolies or cartels and made it illegal to form a contract or trust that interfered with free trade.

Question 34

Four key stages of collective bargaining:

Answer 34

1. Opening presentation of demands
2. Analyzing demands
3. Compromises
4. Informal settlement or ratification

Question 35

Three categories of bargaining issues

Answer 35

1. Illegal items – e.g. trying to instate a closed shop
2. Mandatory items – e.g. wages, the grievance procedure, and how seniority is handled
3. Voluntary items – permissive subjects such as dress code

Question 36

Three main styles of mediation

Answer 36

1. Facilitative mediation – focuses on helping parties find a solution through a series of inquiries
2. Evaluative mediation – formal procedure in which mediators are often legal professionals and focused on protecting rights more than the interests of parties
3. Transformative mediation – attempts to resolve conflicts by validating worth and feelings