HR Planning & Organizational Effectiveness Flashcards
The formulation of organizational missions, goals, objectives and action plans for achievement that explicitly recognize the competition and the impact of outside environmental forces
Strategy
The collective sum of employees attributes, experience, knowledge, and commitment invested in the organization
Human capital theory
ROI can be calculated as
Total revenue -(operating expenses- total compensation costs) / total compensation cost
Behavioural Theory suggests
Different HR strategies are required to influence the diverse behaviours of employees
Eg. via recruitment, selection, training, compensation and performance
Resource based view theory suggests
That the management of resources and capabilities will lead to competitive advantage resulting in superior performance and value creation
Resource based view resources and capabilities include
Resources :
1) Human Resources
2) Proprietary Knowledge
3) Reputation
Capabilities:
1) Adaptability
2) Flexibility
3) Speed if bringing new products to market
Human capital theory economists view the organization as having control over 3 types of resources in the production of goods and services including:
Land
Labour
Capital
Characteristics of an effective Hr strategy include:
External fit & Internal fit
HR programs must Align with or fit the overall strategy of the organization
External fit
HR must fit with other functional areas such as marketing and among HR programs
Internal Fit
Aligning HR strategy with business strategy can be done in one of 3 ways:
1) start with organizational strategy then create HR strategy
2) start with HR competencies the craft corporate strategies
3) combination of both in a form of reciprocal relationship **best method
Strategy formulation
The entire process of conceptualizing the mission of an organization, identifying the strategy and developing long range performance goals
Strategy Implementation
Those activities that employees and managers of an organization undertake to enact the strategic plan, to achieve the performance goals
Pepsi co Canada has expanded to 7 countries in South America. All managers are Canadian citizens. The company relies on ?
Home country national
Jim upon of Korea has been sent by Hyundai to the USA to head their finance department. He is considered?
Expatriate or home country national
Richard johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company’s subsidiary in Uganda, Africa. Richard is a _____?
Parent Country National
When an American company employs a Mexican citizen for its subsidiary in Mexico this is an example of ?
Host country national
A cluster of competencies related to using the levers available to HR professionals to maximize the performance of organizations, teams, and individuals within the context of executing the organizations strategy
Organizational Effectiveness
Environmental Factors
Economic change Globalization Political and legislative factors Technological factors Demographic factors Social/cultural factors
Corporate strategy
Organizational level decisions that focus on long term survival
3 corporate strategies
Restructuring
Growth
Stability
Restructuring strategies include (4)
Turnaround strategy
Divestiture
Liquidation
Bankruptcy
An attempt to increase the viability of an organization
Turnaround strategy
The sale of a division or part of an organization
Divestiture
The termination of a business, plants are closed and the sale of its assets
Liquidation
A formal procedure in which an appointed trustee in bankruptcy takes possession of a business’s assets and disposed of them in an orderly fashion
Bankruptcy
Perceptions of justice (3)
Procedural justice
Interactional justice
Distributive justice
Procedural justice
Procedures or rules used to determine which employees will be downsized
Interactional justice
The interpersonal treatment employees receive during the implementation of the downsizing decision
Distributive justice
The fairness of the downsizing decision
4 growth strategies
Incremental growth
International growth
Acquisition
Merger
Can be attained by expanding the client base, increasing products/services, changing the distribution networks or using technology
Incremental growth
Can be attained by seeking new customers or markets by expanding internationally
International growth
The purchase of one company by another
Acquisition
Merger
Two organizations combine resources and become one
Stability strategies
These are maintenance strategies where companies do not wish to see their company grow - called status quo, neutral, do nothing strategies
HRM 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
Strategic IHRM
4 stages of growth as multinationals evolve
1) Domestic Strategy
2) Multidomestic Strategy
3) Multinational Strategy
4) Global Strategy
Host country nationals
Individuals from the subsidiary country who know the foreign cultural environment well
Parent country nationals
Individuals from headquarters who are highly familiar with the firms products and services as well as with its corporate culture
Third country nationals
Individuals from a third country who have intensive international experience and know the corporate culture from previous working experience with corporate branches in the third country
Expatriate / Home country national
Any individual who gives up residence in his/her home country to take up residence in a foreign country either temporarily permanently
7 steps of strategic planning process
1) Mission, vision, values
2) develop objectives
3) analyze external environment
4) competitive position
5) competitive advantage
6) implement strategy
7) evaluate
A clear and compelling long term goal that serves to unite an organizations efforts
Vision statement
An articulation of the purpose of the organization and the value it creates for customers
Mission statement
Basic beliefs that govern individual and group behaviour in the organization
Value statement
Soft goals
Targets for social conduct - be ethical or environmentally responsible
Hard goals
Hard data, facts, #’s. Eg. to increase profitability in 2022 by 7%
External environment vs internal environment
External =threats and opportunities
Internal = strengths and weaknesses
Overall low cost provider of a product/service that appeals to a broad range of customers
Low cost leader strategy
Eg McDonalds/Burger King
Differentiate the product offerings from rivals that appeal to a broad range of buyers
Broad differentiation strategy
Eg. The whopper with frills or the McRib
Niche members a product / service customized to their tastes/requirements
Focused or Market niche strategy based on differentiation. ( Burger from the keg they make it with sirloin) or Rolls Royce
More value for the money by emphasizing both low cost and upscale difference
A best cost provider strategy
Eg. East side Mario’s burger comes with fries, salad and service or Honda
Concentrating on a narrow buyer segment and out competing rivals on the basis of lower cost
A focused or niche market strategy : lower cost
Eg. Red lobster
Getting rid of unprofitable products, imposing layoffs, making the organization more efficient or attempting to reposition it with new products is an example of which restricting strategy ?
Turnaround Strategy
Getting rid of unprofitable products, imposing layoffs, making the organization more efficient or attempting to reposition it with new products is an example of which restricting strategy ?
Turnaround Strategy
What are the four designated groups
People of aboriginal decent
Women
Persons with disabilities
Members of visible minorities
