Module 3 Flashcards
entails acknowledging employees as crucial assets aligning HR practices with business objectives and planning for the long term sustainability of the organization by cultivating a skilled and engaged workforce
strategic human resource management
relevant in skilled and engaged business environment
strategic human resource management
establishing objectives for the organization and providing clear direction and motivation
goal setting
outlines necessary steps and actions to achieve goals in goal setting
planning process
the planning process:
- setting objectives
- make basic objective planning forecasts
- review alternative courses of action
- evaluate best options
- choose and implement the plan
T/F. planning is sometimes goal-directed
false. it is always goal-directed
executive who sets long-term strategic goals at the highest level
president
executive who establish goals then align with and contribute to overall organizational objectives
vice president
company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain competitive advantage
strategic plan
course of action the company can pursue to achieve its strategic aims
strategy
process of identifying and executing the organization’s strategic plan, by company’s capabilities with demands of its environment
strategic management
the strategic management process (hint: Dear Perry, Form Trends For Immunity Evolvement)
- Define current business goals
- Perform external and internal audits
- Formulate new direction
- translate mission to strategic goals
- Formulate strategies to achieve the strategic goals
- Implement the strategies
- Evaluate performance
stage to assess the products sold, locations for selling them and how the products or services differ from competitors
define current business goals
conducting both external and internal audits to evaluate organization’s alignment with intended direction
perform external and internal audits
serves as a tool for evaluating company’s strengths, weaknesses, opportunities and threats
SWOT chart
entails deciding on the products to be sold, choosing the locations to sell them, outlining how our products or services will set them apart
formulate a new direction
serves as a general declaration of the firm’s intended direction, what they aspire to be
vision statements
statement of what business should be
vision statement
statement of what company’s main tasks at present
mission statement
step where it involves defining specific objectives that align with the company’s mission and vision
translate mission to strategic goals
involves selecting courses of action that will enable company to reach objectives
formulate strategies to achieve the strategic goals
involves the practical implementation of strategies into action
strategy execution
means company’s managers bring strategies to life
implement the strategies
evaluating performance and acknowledging outcomes may deviate from initial plans
evaluate performance
types of strategies
- corporate-wide strategic planning
- business unit strategic planning
- functional strategic planning
five strategies under corporate stregy
- concentration strategy
- diversification strategy
- vertical strategy
- consolidation strategy
- geographical expansion
strategy that focuses on a single product or product line within a specific market
concentration strategy
strategy where a company continually expands its product line
diversification strategy
involves venturing into unrelated products or markets
conglomerate diversification
strategy where companies may choose to vertically integrate by handling aspects such as raw material production or direct product sales
vertical strategy
strategy that involves reducing company’s size to enhance efficiency and focus
consolidation strategy
strategy where companies pursue growth by entering new territorial markets
geographic expansion
determining the basis on which each business competes
competitive strategy
defined as any element enabling a company to distinguish it products or services, increasing market share
competitive advantage
standard competitive strategies
cost leadership, differentiation, focusers
involves becoming low cost leader within an industry
cost leadership
company aspires to be distinctive within its industry in dimensions highly valued by consumers
differentiation
adopt a market niche approach that caters to a specific segment of customers with unique needs or preferences
focusers
instrumental in outlining the overarching directives for each department
functional strategy
top manager’s role in strategic planning
- company business portfolio
- geographical scope
- competitive principles
departmental manager’s strategic planning roles
- assist top managers
- develop functional and departmental plans aligned with overarching strategic objectives
- oversee execution of plan
strategic planning roles
- engaging strategic planning
- formulating functional and departmental strategies
- implementing plans
factors affecting merger and acquisition
- employee resistance,
- significant departures of high-quality staff and
- erosion of morale and productivity
involves meticulous reviews to ascertain the nature of venture
due diligence
following merger and acquisition which includes selection of top management, effective communication of changes to employees and employee retention
interrogation stage
stages for merger and acquisition
- due diligence stage
- merger and acquisition stage
- interrogation stage
alignment of human resource practices with an organizations strategic goals, emphasizing proactive planning, talent management and workforce optimization
SHRM/strategic human resource management
HR aligns workforce with goals:
Policies
- fairness
- legality
- diversity
HR aligns workforce with goals:
Key aspects
- alignment
- flexibility
- communication
HR aligns workforce with goals:
Challenges
- globalization
- tech integration
- well-being
example of an HR system
Ritz Carlton’s HR System
diverse solutions designed to align HR practices with organizational goals
Strategic Human Resource Management Tools
examples of Strategic Human Resource Management Tools
performance management systems and HR analytics
Strategic Human Resource Management Tools
- strategy map
- HR scorecard
- digital dashboard
comprehensive overview of how each department’s performance contributes to the company’s strategic goals
strategy map
tool that allows employers to quantify and computerize the activities outlined in strategy map
HR scorecard
Key features of HR Scorecard
Quantification Process and Computerized Approach
involves the quantification of financial and nonfinancial goals and metrics related to HR activities in strategy map
HR Scorecard: Quantification Process
special scorecard software to faciliate the computerized scorecard process
HR Scorecard: Computerized Approach
purpose of HR scorecard
link HR activities to strategic outcomes
benefits of HR scorecard
strategic decision making and enhanced accountability
integral tool of SHRM that provide a visual snapshot of key metrics derived from HR scorecard
digital dashboard
key points of digital dashboard
visual representation
real-time monitoring
benefits of digital dashboard
timely decision-making
proactive problem solving
uses both quantitative and qualitative data to make comparisons between and within organizations
HR benchmarking
Example of Type of Metrics
- time to hire
- cost per hire
- early turnover
- time since last promotion
- revenue per employee
- performance and potential
- engagement rating
- cost of HR per employee
- ratio of HR professionals to employee
- billable hours per employee
- ratio of HR business partners
- turnover
- effectiveness of HR scorecard
- absenteeism
means comparing the practices of high performing companies to your own
benchmarking
KPI used to measure the progress and success of an organization’s strategic plan
strategy-based performance metrics
examples of strategy-based metrics
- market share
- net promoter score (NPS)
- return on investment (ROI)
- employee engagement (EE)
- time to market
calculates the percentage of the total market that an organization controls
market share
measure of customer likelihood to recommend an organization to others
net promoter score
measures an organization’s return on its investment in a particular project or initiative
return on investment
measures employee satisfaction and commitment to the organization
employee engagement
measures the time it takes and organization to bring a product or service to the market
time to market
analysing data for hiring
workforce/talent analytics
process of using statistical analysis and machine learning to discover hidden patterns, correlations and anomalies within large datasets
data mining
aid in predictive modelling
data mining
technique used to categorize data into predefined classes or categories based on the features or attributes of the data instances
classification
employed to predict numeric or continuous values based on the relationship between input variables and a target variable
regression
six types of talent management questions answered using talent analytics (hint: HAHWTT)
- human capital facts
- analytical HR
- human capital investment analystis
- workforce forecasts
- talent value model
- talent supply chain
generally involves (1) reviewing the functioning of most aspects of the company’s human resource function (2) guaranteeing that the employer is abiding the government regulations and company policies
HR audit
an analysis where an organization calculates where it stands at the moment and determines what it has to achieve to make its HR function better
HR audit
areas covered by HR audits
- roles and headcount
- legal issues
- recruitment and selection
- compensation
- mandated benefits
- group benefits
- payroll
- documentation and record-keeping
- training and development
- employee communications
- employee relations
- internal communications
- termination and transition policies and practices
use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research studies to support human resource management proposals
evidence-based human resource management
two steps in scientific HRM
- collect evidence
- experimentation
set of strategic human resource management initiatives that help companies decentralize decision-making to improve firm performance and profitability
high-performance work system
