HR Planning - Definitions Flashcards
1
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Emergent Strategy
A
Subtly redirecting strategy to respond to changes in the business environment
2
Q
Turnaround Strategy
A
An attempt to increase the validity of an organization by making an organization profitable again
3
Q
Divestuture
A
The sale of a division or part of an organization
4
Q
Liquidation
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The termination of a business and sale of its assets
5
Q
Incremental Growth
A
Involves expanding the product base, distribution networks or new technology
6
Q
International Growth
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Involves seeking new customers or markets by expanding internationally
7
Q
Mission Statement
A
An articulation of the purpose of the organization and the value it creates for the customer
8
Q
Vision Statement
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A clear and compelling goal that unites an organization’s efforts
9
Q
Values
A
The basic beliefs that govern individual and group behaviour
10
Q
Hard Goals
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Include a measurable way to assess the goal
11
Q
Soft Goals
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Define targets for the social conduct of the business
12
Q
Competitive Advantage
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The characteristics of a firm that enable it to earn higher rates of profit than its competitor
13
Q
Core Competencies
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Resources and capabilities that serve as a firm’s competitive advantage
14
Q
Dynamic Capabilities
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The ability to adapt and renew competencies in accordance with the changing business environment
15
Q
Value Proposition
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A statement of the fundamental benefits of the products or services being offered in the marketplace
16
Q
Overreaching HR philosophies
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Philosophy that specify the values that inform an organization’s policies and practices
17
Q
Formal HR Policies
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Policies that direct and partially constrain the development of specific practices
18
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Strategic HRM
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The interrelated philosophies, policies and practices that facilitate the attainment of the organizational strategy
19
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Human Capital Theory
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The human capital of an organization is a resource that requires investment
20
Q
Environmental Scanning
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The systematic monitoring of the major factors influencing the organization to identify trends that might affect the formulation and implementation of both organizations and HR strategies
21
Q
Stakeholders
A
Groups of people who have an interest in the projects, policies or outcomes of an organization’s decisions
22
Q
Outsourcing
A
A contractual relationship for the provision of business services by an external provider. In HR it means transferring high volume transactional work from the HR department to an outside contractor (Human Resources Offshoring)
23
Q
Downsizing Strategy
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A strategy to improve an organization’s efficiency by reducing workforce, redesigning the work, or changing the systems of the organization
24
Q
Survivors (of Downsizing)
A
Employees remaining with an organization after downsizing
25
Downsizing
Activities undertaken to improve the organizational efficiency, productivity, and/or competitiveness that affect the size of the workforce, its costs, and its work processes
26
Workforce Reduction
Cutting the number of employees through programs such as attrition, early retirement or voluntary severance packages, layoffs and terminations
27
Work Redesign
Organizations focus on work processes and asses whether specific functions, products and/or services should be changed or eliminated
28
Systematic Change
Changing the organization’s culture, attitudes, and employee values with the goal of reducing costs and enriching quality
29
Portfolio Restucturing
Changes to the organizations business portfolio
30
Financial Restructuring
The financial changes to an organization, like reducing cash flows or increasing debt levels
31
Organizational Restructuring
A reconfiguration of an organization’s administrative structure associated with an intentional management change
32
Outplacement
Providing a program of counselling and job search assistance for workers who have been terminated.
33
Inplacement
Reabsorbing excess or inappropriately placed workers into a restructured organization
34
Procedural Justice (Downsizing)
The procedures or rules used to determine which employees were downsized, and which stayed
35
Interactional Justice (Downsizing)
The type of interpersonal treatment employees receive during the implementation of the downsizing decision
36
Distributive Justice (Downsizing)
The fairness of the downsizing decision
37
Serial Downsizer
When there are 2+ downsizes in a 5 year period
38
Rightsizing
Establishing a shared vision of the organization and a clearly stated strategy supported by management, understood by employees, and involving a new sense of ownership by members of the firm
39
Strategic International HR Planning
Projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish global competence pools within companies.
40
Strategic International Human Resources Management (SIHRM)
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
41
Domestic Strategy
Internationalizing by exporting goods abroad as a means of seeking new markets
42
Multi-domestic Strategy
A strategy that concentrates on the development of foreign markets by selling to foreign nationals
43
Multinational Strategy
Standardizing the products and services around the world to gain efficiency due to other MNC entering the same market
44
Exportive IHRM Approach
Transferring home HRM systems to foreign subsidiaries without modifying or adapting to the local environment
45
Integrative IHRM Approach
Combining home HR practices with local practices and selecting the most qualified people for the appropriate positions no matter where these candidates come from
46
Frequent Flyers
Employees who make frequent trips to the Host Country (HC)
47
International Commuters
Employeers who work in the Host Country (HC), but live in the home country
48
Short-Term Assignment
When an employees lives in the Host Country (HC) for less than a year, and may or may not bring their family with them for the assignment
49
Permanent Transfer
Where the employee is permanently moved to the Host Country (HC)
50
Host Country National (HCN)
Individuals from the subsidiary country who know the foreign cultural environment well
51
Parent Country Nationals (PCN)
Individuals from headquarters who are highly familiar with the firm’s products and services, as well as with its corporate culture
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Third-Country Nationals (TCN)
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
53
Self-Maintenance Competency: (Cross Cultural Competencies)
The capability to substitute sources of reinforcement when necessary and deal with alienation and isolation
54
Relationship Competencies (Cross Cultural Competencies)
The capability to develop and maintain relationships with home-country nationals (HCNs)
55
Perceptual Competencies (Cross Cultural Competencies)
The capacity to understand why foreigners behave the way they do, to make correct attributions about the reasons or causes of HCNs’ behaviour, and to correct those attributions when they prove incorrect
56
Repatriation
The process of PCNs, TCNs, or even HCNs returning to their home headquarters or home subsidiaries
57
Merger
The consolidation of two organizations into a single organization.8 There are three categories of mergers
58
Horizontal Merger
The merging of two competitors, which combine to increase market power
59
Vertical Merger
When a buyer and a seller (or supplier) merge to achieve the synergies of controlling all factors affecting a company’s success, from the production of raw goods to manufacturing to distribution and retail sales
60
Conglomerate Merger
When one company merges with another but the two companies have no competitive or buyer–seller relationship
61
Consolidation
When two or more companies join together and form an entirely new company
62
Takeover
When one company seeks to acquire another company—usually a hostile transaction (but can mean a friendly merger as well) . A hostile takeover involves acquisition of a company against the wishes of its management
63
Vertical Integration (Merger)
The merger or acquisition of two organizations that have a buyer–seller relationship
64
Horizontal Integration (Merger)
The merger or acquisition of rivals
65
Friendly Merger
Management of one company contacts another and the BOD are informed and approve the merger
66
Hostile Takeover
A dramatic and complex process. Involves the targeted company pushing for “poison pills” and seeking “white knights”
67
Poison Pill (Merger)
The right of key players to purchase shares in the company at a discount—around 50 percent—that makes the takeover extremely expensive
68
White Knight (Merger)
Buyers who will be more acceptable to the targeted company
69
Pac-Man Scenario (Merger)
Where the targeted firm makes a counteroffer for the bidding firm
70
Cultural Pluralism (M&A Culture)
The two company's cultures co-exist
71
Cultural Integration (M&A Culture)
The two company's blend cultures together
72
Cultural Assimilation (M&A Culture)
One company culture absorbs the other
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Cultural Transformation (M&A Culture)
The partner companies abandon key elements of their current cultures and adapt new norms
74
Due Diligence
A process through which a potential acquirer evaluates a target firm for acquisition. HR has a role to evaluate compensation data
75
HR Forecasting
The process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future
76
HR Gaps
A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirement
77
HR Surpluses
A situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirement
78
HR Demand
The organizations projected requirements for human capital
79
HR Supply
The source of human capital to meet demand requirements, obtained either internally or externally
80
Generic Human Capital
The knowledge, skills, and abilities that are held by employees and that are useful to the firm. It is called generic human capital because these types of skills are of equal value to most any company, and so this value can be priced in the labour market
81
Firm-Specific Human Capital
The skills that employees have based on their tacit knowledge and learned from experience in the firm and through mentorship
82
Human Capital Stock
The amount of human capital within the firm at any given time
83
Human Capital Flow
How human capital stock changes over time
84
Demand Forecasting
The process of determining the organization’s requirement for specific forms of human capital
85
Supply Forecasting
The process of determining the organization’s requirement for specific forms of human capital
86
Envelope (HR Forecasting)
Projections or multiple-predictor estimates, of future demand for personnel predicated on a variety of deferring assumptions about how future organizational events will unfold
87
Employee Segments
The grouping of employees based on characteristics that are relevant to the employee experience such as career preferences, demographics, work–life preferences, or benefit
88
Skills Gap
A situation in which the supply of a particular form of human capital available to the firm is inadequate to address the demand
89
Skills Inventory
An individualized personnel record held on each employee except those currently in management or professional position
90
Management Inventories
An individualized personnel record for managerial, professional, or technical personnel that includes all elements in the skills inventory with the addition of information on specialized duties, responsibilities, and accountabilities
91
Markov Model
A model that determines the pattern of employee movement using a set of mutually exclusive states for movement into or out of a particular job. It produces a series of matrices that detail the various patterns of movement to and from the wide variety of jobs in the organization.
92
Transitional Probabilities
The likelihood that an individual in a specific job will be promoted, terminated, moved laterally, be demoted, or stay in the job, normally one year into the future
93
Linear Programming (HR Supply)
Determines an optimum or best-supply mix solution to minimize costs or other constraints (such as staffing ratios)
94
Movement Analysis
A technique used to analyze the chain or ripple effect that promotions or job losses have on the movements of employees
95
Bullwhip Effect
When errors in estimating the supply of human capital are amplified along the supply chain, resulting in large overestimates of hiring needs
96
Vacancy Model
Analyzes the flows of employees throughout the organization by examining inputs and outputs at each hierarchical or compensation level
97
HRIS
A comprehensive across-the-board software system for HRM that includes subsystems or modules
98
Enterprise Resource Planning (ERP)
Commercial software systems that automate and integrate many or most of a firm’s business processes
99
HR Metrics
Summary measures of HR outcomes that are relevant to the performance of the HR function
100
HR Dashboard
Summary measures of HR outcomes that are relevant to the performance of the HR function
101
Key Performance Indicators
A snapshot measure of system performance that demonstrates the success of strategy implementation in terms of cost, quality, or time
102
Succession Management
The systematic process of determining critical roles with the organization, identifying and evaluating possible successors, and developing them for these roles. The first priority of any succession management program is to have a plan to replace its leaders
103
Replacement Planning
The process of identifying short-term and long-term emergency backups to fill critical positions
104
Promotion
An employee’s upward advancement in the hierarchy of an organization
105
Job Rotation
A process whereby an employee’s upward advancement in the hierarchy of an organization is achieved by lateral as well as vertical moves
106
Open System (Organizational Change)
A system that receives inputs from its external environment
107
Single-Loop Learning (Organizational Change)
The attempt to solve a problem using a single strategy, without examining the validity of the problem itself
108
Double-Loop Learning (Organizational Change)
A method of learning that involves questioning current assumptions, examining a problem from different perspectives, and questioning the validity of the problem
109
The Planned Model of Change (Organizational Change)
Change that comprises four elements in total:
- Field theory
- Group dynamics
- Action research
- The three-step model
110
Field Theory (Planned Model of Change)
An approach to understanding and changing individual or group perceptions and behaviours by seeking to understand the interdependent forces that act on individuals or groups and that motivate them toward certain courses of action and restrain them from others
111
Action Research (Planned Model of Change)
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
112
Three-Step Model (Planned Model of Change)
1. Unfreezing
2. Moving
3. Refreezing
113
Unfreezing (Three-Step Model)
As the initial stage of organizational change, unfreezing involves the development of a shared understanding among stakeholders that a particular change is necessary
114
Moving (Three-Step Model)
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
115
Refreezing (Three-Step Model)
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
116
Chaos Theory
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
117
Organizational Learning
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 firm’s culture and processes
118
Personal Mastery (Organizational Learning)
The understanding of one’s purpose and the development of a personal vision
119
Mental Models (Organizational Learning)
An internal representation of the way things work. Mental models influence the causal attributions that we make
120
Team Leading (Organizational Learning)
The interaction of individual ideas and efforts toward a team objective that results in outcomes that exceed the capabilities of any individual on the team
121
Systems Thinking (Organizational Leardning)
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
122
Workforce Analytics
How HR metrics, such as turnover and employee engagement, are used to describe the workforce
123
HR Analytics
An evidence-based approach for making better decisions about employees and HR policies, using a variety of tools to report HR metrics and to predict outcomes of HR programs
124
Business Strategy
Plans to build a competitive focus on one line of the business
125
HR Forecasting
Ascertaining the net requirement for personnel by determining the demand for, and the supply of human resources, both now and in the future
126
Transaction-Based Forecasting
Ascertaining the net requirement for personnel by determining the demand for, and the supply of human resources, both now and in the future
127
Event-Based Forecasting
Forecasting that is concerned with changes in the external environment.
128
Process-based Forecasting
Focuses on the processes used that impact the flow of work
