HR Strategy Flashcards
People
Quantifiable measures of performance used to gauge progress toward strategic objectives or agreed standards of performance.
Key performance indicators (KPIs)
Plan of action for accomplishing an organization’s overall and long-range goals
Strategy
Process of setting goals and designing a path toward a competitive position
Strategic planning
Concise outline of an organization’s strategy, specifying the activities the organization intends to pursue and the course its management has charted for the future
Mission statement
Description of what an organization hopes to attain and accomplish in the future, which guides it toward that defined direction
Vision statement
Performance management tool that depicts an organization’s overall performance, as measured against goals, lagging indicators, and leading indicators
Balanced scorecard
Process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats and to assess how these factors affect the organization currently and how they are likely to affect the organization in the future
Environmental scanning
Type of metric describing an activity that can change future performance and predict success in the achievement of strategic goals
Leading indicator
State in which an organization’s strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities
Strategic fit
Actions, processes, or results that are needed to deliver a desired value
Value drivers
System of actions that leaders take to drive an organization toward its goals and objectives
Strategic management
Process by which an organization identifies performance gaps and sets goals for performance improvement by comparing its data, performance levels, and/or processes against those of other organization
Benchmarking
Beliefs and principles defined by an organization to direct and govern its employees’ behavior
Organizational values
Type of metric describing an activity or change in performance that has already occurred
Lagging indicator
Process for understanding how seemingly independent units within a larger entity interact with and influence one another
Systems thinking
Method for assessment of an organization’s strategic capabilities through use of the environmental scanning process, by which internal and external factors affecting achievement of organizational goals are identified and considered
SWOT analysis
Scanning process that searches for environmental forces in political, economic, social, technological, legal, and environmental categories
PESTLE analysis
Which is the most effective means of communicating the results of a strategic management initiative?
Prepare a summarized conclusion which is supported by data.
Effective communication works to efficiently and effectively make a point. The best strategy is to create a narrative that is supported bye the data instead of letting the data drive the content of the report. Avoid overwhelming audiences by presenting excessive amounts of data via spreadsheet or PowerPoint
The intended beneficiaries of a project to improve inclusion and diversity include the organization itself and individual employees. Due to the sensitivity of this issue and the need to find lasting solutions with few unintended consequences, the director of HR wants the project to be conducted with a project methodology that uses iterative methods to gain a deep, empathetic understanding of the underlying problems and the in-depth requirements of stakeholders. Which is the best methodology listed for this situation?
Design thinking
Design thinking places the customer at the center of the project by understanding the in-depth requirements of the project’s intended end user or beneficiary. It focuses on empathy in order to ensure that the intended stakeholder receives value from the project. The first step in the iterative process involves understanding the needs, followed by gaining an understanding of the problem that is being addressed.
HR is committed to maintaining the strength of a business division that is being sold in order to preserve its sales value. Which strategy offers the best opportunity to reduce resignations by key talent once the divestiture is announced?
Offer generous severance protection
The best answer is to provide employees with insurance against possible severance after the sale. Such severance protection may include cash, benefits, and perquisites.
When communicating strategic results, what poses a challenge?
The high amount of available data
The plethora of data available when communicating strategic results poses challenges when communicating. Efficiently and effectively communicating data as a narrative is the best approach.
For the first time in its history, a small, privately held consulting company decides to create and implement a strategic plan. During the process, the team disagrees over whether the organization should add a new division responsible for providing HR services, in addition to its core accounting services, to its clients. Which action should the leadership take to resolve this disagreement?
Conduct internal and external research to assess needs
Strategic planning often cannot be completed in one session. New ideas that are proposed, particularly those that require a substantial commitment of resources, require more research. In this case, more external and internal research is required. Benchmarking may eventually be used to ensure that the company’s services are competitive, but this will follow internal and external research.
An organization is struggling to create and implement a strategic management plan. Multiple divisions have been involved in the creation of the plan from the start, which has lead to infighting over how major portions of the plan will benefit certain divisions. What should HR ensure is being done during the planning process to correct this situation and ensure that the plan is successfully created and implemented?
Ensure that the efforts of all divisions are properly aligned
It is crucial that everyone is aligned in their efforts and works to ensure that departmental goals are aligned with the overarching organizational goal. Divisions should not be concerned about securing specific benefits for themselves during the strategic planning process. Instead they should ensure that their divisional goals fall in line with the strategic plan and help the organization move toward its goal.
As a strategic HR practitioner, how would you approach the task of aligning HR’s goals to the organization’s strategy?
Identify where new skills are needed
As part of its strategic management, HR creates strategies to achieve goals aligned with the organization’s strategy. Identifying where new skills are needed is an example of this strategy.
As a strategic HR practitioner, how would you approach the task of aligning HR’s goals to the organization’s strategy?
Employee census for the subsidiary that includes current roles and total current compensation
The value of the workforce that has been selected for divestiture is useful information that HR can provide as the organization is considering target buyers. A total head count along with the current cost of each employee will be needed. This occurs as the second step of the divestiture process, after the candidate for divestiture is identified.
Which action should an HR director take to complete a project with a tight deadline?
Use critical path analysis to develop a project schedule that fits the time constraints
By using critical path analysis, the HR director will be able to find the most efficient way to complete the project. This can help ensure that the project deadline will be met. Strategically aligning project objectives and establishing strong communication channels may help complete the project more efficiently but will not necessarily allow the HR director to determine if the deadline will be met. Lean project management is a specialized approach, and it may not be the most time-efficient option depending on the scope and focus of the project.
A company announces that it intends to capture another 20% of market share by opening ten more stores within three years in key locations. What is being communicated?
Strategic objective
A strategic objective outlines specific, time-based results that an organization seeks to achieve in pursuing its strategy
What issue identified during an environmental scan for a small, family-owned grocery store represents a threat to its competitive strategy?
A gas station on the next block has expanded to include a new convenience store
In the SWOT analysis, threats are an indication of possible danger, harm, or menace. When considering competitive strategy, a similar business nearby that offers additional and differentiated value to customers is a direct threat that must considered in strategic planning. Even though it is close, the ethnic foods grocery store is appealing to different customers or customer needs. The fee and rate increases apply to all similar competitors.
Which approach should HR take to measure organizational performance, identifying strategic aspects while avoiding being overwhelmed by data?
Reevaluating current measures and then determining what changes may be needed based on internal and external factors
Since new or evolving strategies may require new types or levels of performance, targets for measurement should be reviewed regularly and revised as needed. This is the primary purpose of adding the E (evaluated) and R (revised) components to the SMART acronym, thus making it SMARTER. Additionally, only strategically significant aspects of performance should be measured to avoid being overwhelmed with data. Measures should be mindful of both past and future performance, and data should be shared to stimulate performance improvement.
What is crucial when utilizing systems thinking?
Feedback
Because of the interconnected nature of systems, the role of feedback is extremely important as it is essential for the efficient, continued functioning of the system
An organization is embarking on the creation of a new strategic plan for the next five years. Just before the process starts, the HR VP becomes aware of widespread discussions between lower-level managers on how to use the strategic planning process to advance pet projects. How should the HR VP ensure that the strategic planning process is successful without it being abused for personal gain by those involved in the process?
Focus on organizational core competencies to drive the process
The HR VP should ensure that the strategic planning process is focused on core competencies. By doing so, the organization will focus on key areas. By not involving lower-level managers, the HR VP would risk less involvement in the process and the organization might miss out on worthy concepts originating from the lower levels. Using third-party consultants may jeopardize the adoption of the strategic plan throughout the organization, including both senior and junior management levels. Attempting to identify the parties is an inefficient use of time and resources.
Which HR action is most predictive of successful strategic outcomes in an organization?
Focusing on the organization’s core competencies in each business unit to evaluate and employ change as needed
Organizations that are successful at strategy master the skills of alignment of effort across all business units, controlling drift by evaluating and correcting course when necessary. In addition, strategic organizations are aware and focused on their core competencies to ensure that the efforts support areas of strength.
A retail sales manager of a bank sees a commercial for a local competitor advertising low rates for a home equity loan. The next day, the manager develops a promotion offering a lower rate than the competitor’s. What conventional business strategy is this?
Red ocean
Red ocean strategies seek to obtain market share through lower cost or differentiation. Blue ocean strategies create competitive advantage through innovation, typically by creating a completely new arena. A growth strategy is simply the way in which an organization tends to grow. Focus strategies apply cost leadership or differentiation within narrow industry segments.
Which is considered a threat for a company that wants to build a chemical-producing factory in a small town?
Community resistance
A threat comes from an environment that is external to the company. In this case, local citizen resistance to a chemical plant may be an external threat to the organization’s plans
Because change is constant and brings new risks, HR is reviewing the current context for risk management. Which assessment will provide information on changing internal and external risk elements?
SWOT analysis
A SWOT analysis will reveal internal and external sources of risk that have changed and require consideration for the risk management plan. The other assessments offer information too limited to provide a general sense of new risks that need management.
Which is the most likely advantage of starting a greenfield operation?
The company can start fresh with new technology, workforces, and practices
Greenfield operations require more time and probably more resources but provide more control and strategy
Which action best demonstrates HR’s understanding of an organization’s decision to adapt a differentiation strategy based upon innovative product design?
Analysis of the skill set of employees in product development to benchmark current and future needs
A focused analysis of skill sets of employees in research and development or product development would demonstrate HR’s understanding of the need for talent to support innovation and creativity in product design. A review of the current and future state needed to support the strategy best demonstrates an understanding of what is needed now and for the future. Recruiting strategies focused on unique skill sets may or may not be in alignment with the actual skill sets needed to support the strategy of innovative product development. A communication plan that outlines the plan to adopt the differentiation strategy and implications across the business does not demonstrate HR’s understanding of how to best support the new strategy. Sharing the information with the others is dissemination of the information only. Collaborating with business leaders to roll out the strategy will be a part of the implementation process. However, it does not reflect the HR actions that support an understanding of what is needed to support the new direction.
Which sequence should HR advise the VP of operations to take in consolidating job functions?
Define strategically aligned project objectives; set the timeline; determine the budget; establish quality control; measure progress; evaluate project results
The sequence of steps in the project management process is 1. define the project objectives, 2. set the schedule and budget, and 3. evaluate whether the project yielded the desired results.
Which is a key benefit of defining an organization’s values?
They guide employee behavior and decision making
An organization’s values state what is important to the organization and how employees should conduct themselves
An HR organization has committed resources to implementing a manager self-service portal. To measure the effectiveness of the initiative, the HR director created a dashboard that tracked the number of transactions managers completed without assistance and hours HR spent in support. Seeing this data, management proposes decreasing HR headcount. This would seriously disrupt the director’s strategic vision for HR. How might this have been avoided?
Included measures showing the impact of redirecting HR staff time from transactions to consultation
The best answer would have been to measure acceptance by line managers, time savings for both HR and line functions, and the number of strategically and operationally focused support engagements HR was able to deliver because of decreased transactional obligations. Projects should be planned to measure important outcomes.
During a strategic planning meeting, the planning team develops its three- to five-year objectives. Which is the primary value of setting such objectives?
The objectives provide focus and direction for the organization
Long-term objectives (such as these three- to five-year objectives) provide a focus for the organization and enable corporate, unit, and functional levels of the organization to develop strategies that support those objectives.
An HR department has had an unusual degree of turnover in its leadership in the past three years. What challenge is the function most likely to encounter in fulfilling strategic plans?
Inconsistent decision making
Of the possible answers, inconsistent decision making is the most likely, since each new leader may interpret priorities differently. The change in leadership may deter the improvement of core competencies but should not cause staff to become less competent. The HR team will not be able to use trust in their leader to help overcome resistance, but the level of resistance depends on many other factors. The staff’s ethical behavior has also been shaped by many factors other than leadership, many of those factors personal. There is no reason to expect a sudden shift in this behavior across the entire staff.
