HR Strategy

Question 1

What is strategy?

Answer 1

Long-range plans to achieve defined goals

Question 2

What are the four parts of a strategic management process?

Answer 2

FDIE-
Formulation-gather info and define mission

Develop- how and where. Translating data
Implementation-allocate resources
Evaluation-assess and adapt

Question 3

What is essential for strategic success?

Answer 3

Alignment of effort across the organization (alignment of structure and culture)

Question 4

What are strategic levers and constraints and what is the primary lever?

Answer 4

Levers and constraints make strategy more or less difficult to achieve;primary lever is the employees

Question 5

What is organizational culture?

Answer 5

Shared assumptions and beliefs

Question 6

What is the role of HR in strategy?

Answer 6

Supporting the needs of stakeholders and building pivotal talent pools

Question 7

What are the four phases of an organization’s life cycle and what is generally HR’s focus in each

Answer 7

1. Introduction =energy and vision
2. Growth=standardization
3. Maturity =efficiency and disciplined risk taking
4. Decline=right sizing and change management

Question 8

What is environmental scanning and what good does it do?

Answer 8

Identifying external threats and opportunities;lessens randomness of information and provides early warnings of changing external conditions

Question 9

What is PEST

Answer 9

The search for environmental forces: political, economic,social,and technological

Question 10

What is SWOT

Answer 10

The use of data obtained through PEST to identify levers and constraints: strengths,weaknesses,opportunities,and threats

Question 11

How does clarity of mission help an organization?

Answer 11

It is a guide during crisis,and reflects culture,and helps with branding

Question 12

What is the difference between strategic goals and objectives?

Answer 12

BHAG’S(big hairy audacious goals)strategic goals are long-term and transformational

• The objectives are for each activity and the objectives are tied to value drivers (specific impacts)

Question 13

What is the good of a balanced scorecard?

Answer 13

Provides balanced,strategy-focused perspective not focused solely on finance but also customers, learning and growth, and internal business processes; can show leading and lagging indicators

Question 14

What are leading and lagging indicators?

Answer 14

Leading indicators =affects that impact the future (example:engagement survey results)

Lagging indicators =events that have already occurred (example:turnover)

Question 15

What are SMART objectives?

Answer 15

Specific 
Measurable 
Attainable 
Relevant 
Timebound objectives

Question 16

What is benchmarking and why should we be cautious about it?

Answer 16

• Benchmarking is the comparison of an entity’s performance to another, but beware of cultural bias.

Question 17

What are balance sheets ,income statements , and cash flow statements?

Answer 17

Balance sheet=assets,liabilities, and equity at one point in time(only money)
Income statement =revenues,expenses,and profits (show bottom line)
Cash flow statement =cash in and out of the organization

Question 18

What might a negative cash flow in operations, and in finance mean?

Answer 18

Sales are to low or cost of production is to high; and to much borrowing

Question 19

What is gross profit margin?

Answer 19

It is the gross profit divided by net sales which = a % of every sales dollar to cover the cost

Question 20

What is net profit?

Answer 20

It is net income divided by net sales=shows efficiency

Question 21

What is the danger of excessive use of financial measures?

Answer 21

It can overemphasizes short-term results

Question 22

What is strategic fit?

Answer 22

The compatibility of strategy with internal and external environments

Question 23

What are Porter’s competitive strategies of cost leadership, differentiation, and focus?

Answer 23

Cost leadership = lowest price
Differentiation =unique
Focus =segment/niche

Question 24

Explain the following growth strategies:
Strategic alliance 
Joint venture 
Equity partnership 
Merger/Acquisition 
Franchising 
Licensing 
Contract manufacturing 
Management contract 
Turnkey operations 
Greenfield operations 
Brownfield operations

Answer 24

• Strategic alliance =share assets
• Joint venture =jointly owned
• Equity partnership =partnership agreement
• Merger/Acquisition =concern for data privacy
• Franchising =low risk entry
• Licensing =no control over license
• Contract manufacturing =lower cost when other company manages operations
• Management contract =other company does things except financing and ownership
• Turnkey operations =acquire with no change
• Greenfield operations=new from the ground up
• Brownfield operations = repurposed

Question 25

What are HR’s main roles in alliance/joint ventures and divestitures?

Answer 25

Alliance/joint ventures =HR’s role is to focus on people and cultural fit (communication)

Divestitures=HR’s role is to try to not to lose good talent(communicate) and learn lessons

Question 26

What does due diligence attempt to reduce?

Answer 26

Uncertainty

Question 27

What does a strategic budget do as opposed to an operations budget?

Answer 27

A strategic budget funds and manages a project with line of sight goals as opposed to an operations budget which funds ongoing activities

Question 28

What are two tools used to prioritize investment?

Answer 28

Growth share matrix and nine-box matrix

Question 29

Why develop horizon strategies?

Answer 29

To spread out the risk, and work on lower levels of uncertainty first, and to keep production going

Question 30

What is a business case and what are its four aspects!

Answer 30

• Description of problem and proposed solution
• statement of need
• recommended solution, risks and opportunities
• estimated costs and time frame

Question 31

What makes for good communication?

Answer 31

Two-way,leaders support, flows across silos, connects to strategy

Question 32

Measures must show what two things to help with strategic implementation?

Answer 32

Activities and results

Question 33

How do you evaluate success?

Answer 33

Based on agreed metrics that have been communicated, and they are measurable, and strategically valuable