Organization Flashcards
HR’s strategic role
Participation in creating the organization’s strategy.
Aligning the HR strategy with the organization’s strategy.
Supporting other functions in their strategic roles
Push/Pull Strategy (Marketing/Sales Function)
A “push” strategy focuses on getting products/services in front of customers. For example, companies may have showrooms or create a strong point-of-sales presence at the retail level.
A “pull” strategy attracts customers to the product. An example of this is the carbonated drinks industry, which invests heavily in advertising and promotion to create brands and boost sales.
HR Administrative Role
The HR focus in this role is twofold: managing compliance issues and record keeping. Often referred to as “transactional activities,
How HR supports marketing & Sales
marketing works focuses on teh creation of brand identity. Hr can ensure that its activities are aligned with the identity that marketing is creating and use this brand identity to attract future employees
sales might have hr design compensation systems that motivate sales behavior.
How HR supports research and development
R&D thrives on cutting-edge employee skills and knowledge. HR is a partner in sourcing good job candidates and creating attractive compensation packages. HR’s efforts to create inclusive and diverse cultures are also important to R&D. HR can protect the organization’s investment in R&D by ensuring that contracts protect intellectual property rights
How HR supports operations
Operations managers may have complex workforce planning needs that can be addressed through HR’s ability to analyze historical data and predict and creatively manage gaps in resources.
Compliance issues are greater in this function, and HR helps prepare managers and supervisors for these responsibilities and performs many compliance activities, such as delivering and documenting safety training and reporting and documenting workplace accidents and conditions.
Outsourcing
Process by which an organization contracts with third-party vendors to provide selected services/activities instead of hiring new employees
HR audit
Systematic and comprehensive evaluation of an organization’s HR policies, practices, procedures, and strategies.
Shared services HR model
HR structural alternative in which centers with specific areas of expertise develop HR policies in those areas; each unit can then select what it needs from a menu of these services.
Center of excellence (COE)
An organizational structure that leverages staff expertise in certain areas to improve the entire organization’s strategic performance.
Dedicated HR
HR structural alternative that allows organizations with different strategies in multiple units to apply HR expertise to each unit’s specific strategic needs.
Functional HR
HR structural alternative in which headquarters HR specialists craft policies and HR generalists located within divisions or other locales implement the policies, adapt them as needed, and interact with employees.
HR’s Focus
People: acquiring, developing, and retaining talent.
Executive management (often referred to as the C-suite) is ultimately responsible for what
all of the core business functions and their effect on the organization’s performance. The primary responsibilities of executive management are to:
Develop and communicate strategy to the organization’s components.
Monitor and control implementation of strategic and operational activities through control of financial resources.
Be the primary interface with the organization’s stakeholders, from investors and regulators to customers and communities.
Lead the organization through a shared vision and the values they model in all interactions.
How does HR interact with executive managment
HR contributes to the development of organizational strategy, advising on the human capital implications of strategic decisions. It may work directly with the board to advise on executive compensation and matters of governance
How HR Interacts with Finance and Accounting
HR collaborates with finance and accounting to:
Plan and monitor annual functional and special project budgets
Manage relationships with suppliers
HR supports governance by:
Providing governance and ethics training to board members and employees
Participating in risk prevention programs (e.g., screening job applicants, fraud investigations)
Supporting external and internal audits
4 P’s of marketing
price, product, promotion, and place.
How HR Supports Marketing and Sales
HR can ensure alignment with marketing’s brand identity by:
Using the brand identity to attract future employees
Collaborating with marketing to create teams and team cultures that embody brand characteristics (e.g., customer service, awareness of and use of cutting-edge technologies)
Sales may rely on HR to:
Design compensation systems that motivate sales behavior
Provide skills and knowledge training
what does marketing work focus on?
brand identify
in a commercial enterprise, what is research and development (R&D) or new product design and development is responsible for
future revenue.
How HR Supports R&D
HR supports R&D by:
Sourcing good job candidates with cutting-edge skills and knowledge
Creating attractive compensation packages
Promoting inclusive and diverse cultures, which are important to R&D
Protecting the organization’s investment in R&D by ensuring contracts protect intellectual property rights
HR can consult with R&D on designing processes that:
Support a culture of collaboration and innovation
Create career development paths for non-managers
Revise job descriptions to reduce bureaucratic burdens on R&D employees
Design systems and processes that support agile decision-making
What is operations for
This part of the organization is responsible for:
Developing, producing, and delivering products and services to customers
The operations function:
Builds the products and services defined by marketing and R&D
Supports sales in monetizing these products and services
Serves as the source of revenue for the enterprise
“Products” can include a wide range, such as:
Tangible products (e.g., automobiles)
Intangible products (e.g., software)
Services (e.g., consulting engagements)
HR Team member List
Leader, Managers, Specialist, Generalist & HR Business Partners
HR Team Member Leader
HR has a strategic role within the organization:
Typically part of the senior leadership team
Ideally reports directly to the CEO or COO
This structure allows HR to:
Bring insights on strengths, weaknesses, opportunities, and threats to the organization’s strategy
Participate in the development of overall strategy
HR leaders are responsible for:
Developing and directing the strategy, priorities, and focus for the HR team
HR Team Member Manager
HR managers are responsible for units within the HR function, such as:
Employee relations
Talent acquisition
Organizational development
HR managers:
Plan, direct, and coordinate activities for their unit
Provide input to the HR leader for HR strategy
HR Team member Specialist
HR specialists (also known as functional experts) have expertise in specific areas, including:
Compensation and benefits design
Talent management
Metrics
IT
Occupational health and safety
Organizational development
Workforce relations
Their role is to:
Apply best practices in their discipline
Advance the HR strategy
HR Team member Generalist
HR generalists (also known as HR practitioners) are familiar with all of HR’s varied services:
May have expertise in one or more specialty areas of HR
Generally proficient enough in each area to provide sound advice and direction to employees and managers
HR generalists:
Work closely with HR specialists to ensure information and programs are accurate and complete
May be embedded within countries or business units
HR business partner
Here’s the information in bullet points:
HR business partners are more experienced generalists, assigned to represent HR services directly to other business functions
HR business partners:
Use a deeper understanding of the business (both the organization and the function) to help functions achieve their goals
Require competencies such as:
Business Acumen
Consultation
Relationship Management
Communication
HR business partners can be key to demonstrating HR’s value throughout the organization
What are advantages and disadvantages of Centralized HR model
Advantages: Provides more control and consistency across organization.
Disadvantages: Can inhibit flexibility and responsiveness; can decrease effective communication.
What are advantages and disadvantages of deCentralized HR model
Advantages: Allows for more direct contact between HR and other functions and facilitates communication and responsiveness.
Disadvantages: Lack of consistency among HR policies and standards.
What are advantages and disadvantages of Functional HR model
Advantages: Facilitates consistency between headquarters policy and practices and implementation in business units.
Disadvantages: Can isolate headquarters HR from business realities perceived by all staff and employees.
What are advantages and disadvantages of Dedicated HR mode
Advantages: Promotes strategic alignment between headquarters and units.
Disadvantages: Isolation of dedicated HR units and loss of shared knowledge and experience; may lead to duplications and inefficiencies.
What are advantages and disadvantages of SHared Services HR mode
Advantages: Offers expertise efficiently, reducing load of transactional activity in favor of value-creating activity.
Disadvantages: Risks underuse of service centers when their existence is not widely known.
What are advantages and disadvantages of center of excellence HR model
Advantages: Takes advantage of digital communications to create networks of experts in the organization.
Disadvantages: Similar to shared services, risks underuse when its existence is not widely known
What are advantages and disadvantages of Business partners HR model
Advantages: Allows business partners to acquire a deeper understanding of the business and enables HR to better support organizational efforts.
Disadvantages: Can be difficult to define roles and responsibilities for business partners, who may become a scapegoat from employees in both areas for issues that occur.
What are advantages and disadvantages of Matrix partners HR model
Advantages: Works well when pressures originate from multiple areas or when the work is complex (such as setting benefit policies equitably between employee groups in different locations).
Disadvantages: Blurred reporting relationships, time constraints, and increased workload may result. Opportunity for conflict between senior management of HR and business areas.
what are advantages and disadvantages of Global resources HR model
Advantages: Helps HR consider all areas when making decisions by avoiding the tendency to consider only local issues.
Disadvantages: Can increase the opportunities for miscommunication or failure to recognize particular cultural norms if not done carefully.
first step in measuring and reporting results
Define Key performance indicators
What is a balance scorecard do
A balanced scorecard for HR:
Links clearly defined department objectives and performance to the company’s strategic business goals
Focuses HR staff on activities that support the company’s goals
Demonstrates HR’s strategic value by defining and measuring HR’s contribution in concrete, clearly understood terms
For a balanced scorecard to be effective it must:
Contain accountability and measurable results.
Be valid. The measurement system must contain understandable measures, metrics, and targets that are aligned to the objective and can be supported with solid data.
Contain only those measures that are most important to the objective and the organization’s strategic plan; that is, the measures must result in actionable items.
Focus on results. Simply measuring turnover or time to fill is ineffective if no action is taken as a result. More meaningful measures that are aligned clearly with the organization’s strategic plan include productivity and retention.
Be carefully planned and executed.
what is absence rate and give a use (Hr Metric)
Ratio of lost days to number of employees
To reflect benefits of a change in workplace conditions
What is accruals and give a use (HR metric)
Comparison of budget to actual assignee costs
To monitor expense accruals and make sure that assignment budget and financial goals are met
Hr Metric. what is applicant yield ratio and give use
Percentage of applicants who proceed to the next step of the selection process
To demonstrate effectiveness of recruiting methods
HR Metric. HR staff per full-time employee
Ratio of the number of HR staff retained to number of overall full-time staff retained
To show if HR is adequately staffed to support the needs of the workforce
HR Metric . Human capital return on investment
Ratio of employment-related expenses to revenue minus nonemployment expenses
To demonstrate value of HR programs
HR Metric
Human capital value added
Revenue minus nonemployment expenses divided by number of full-time employees
Used comparatively to indicate increase in employee productivity as the result of HR activities
HR Metric. Key talent retention
Percentage of key talent retained
To demonstrate effectiveness of employee development and reward strategies
HR Metric: Promotion Pattern
Percentage of internal promotions
To demonstrate effectiveness of development programs and strong culture
HR Metric: Success ratio
Proportion of selected applicants who are later judged to be successful on the job
To indicate effectiveness of recruiting, selection, and orientation methods
HR Metric: Training return on investment
Economic benefit of enhanced performance minus costs of developing, producing, and delivering training
To demonstrate value of strategic choice to invest in training
HR Metric: Vacancy costs
Costs of substitute labor (temporary workers, contractors, outsourcing partners) minus wages and benefits not paid because vacant
To support decision to outsource function or area and decrease internal head count
Types of HR Audits list
Compliance, Best Practices, Strategic, Function-specific
HR Audit: Compliance
Focuses on how well the organization is complying with current employment laws and regulations
HR Audit. Best practices
Helps the organization maintain or improve a competitive advantage by comparing its practices to those of employers identified as having exceptional HR practices
HR Audit: Strategic
Focuses on the strengths and weaknesses of systems and processes to determine whether they align with the HR departmental and/or the organizational strategic plan
HR Audit. Function-Specific
Focuses on a specific area in the HR function (such as payroll, performance management, records retention, etc.)
List the audit process
Determine the scope and type of audit
Develop the audit questionnaire
Collect the data
Benchmark the findings
Provide feedback about results
Develop action plans
Foster a climate of continuous improvement
what is OED
Organizational effectiveness and development (OED) focuses on the structure and functionality of the organization to increase the long- and short-term effectiveness of people and processes.
organizational development (OD)
refers to an organizational management discipline used to maintain and grow organizational effectiveness and efficiency through planned interventions.
what is a proactive intervention
Proactive OED interventions:
Identify and correct potential problems before they affect performance.
Prepare the organization to take advantage of anticipated opportunities.
Example of OED interventions for organizations in a rapidly changing marketplace:
Develop communication networks that allow critical information to be exchanged quickly, free of hierarchical structures that slow communication.
Create structures that allow employees to make decisions quickly and independently.
What are Remedial interventions
Remedial interventions:
Make changes that bring an organization back on course toward its strategic goals.
Typically designed to resolve a current or newly discovered problem.
Aim to bring about a long-term positive impact on the organization and its function.
Success is often assessed by whether the problem or issue was resolved.
Five ways remedial interventions can impact an organization:
Increase efficiency.
Reduce employee burnout.
Improve product performance.
Shift from reactive to more proactive strategy.
Address budget deficits.
Reasons why OED interventions fail
Leadership not involved.
the wrong messengers are used
communication is too sudden/late and or not aligned with organizational realities
communication to narrow
Characteristics of effective OED interventions
Strategically Aligned
collaborative
supported by top management
producing sustainable results
supporting continuos improvement
using common tools
using common language
When are organizational interventions
The organization is failing to meet its strategic objectives because its structure is inefficient and no longer suits its needs.
As it shifts competitive strategies, the organization must realign its design to develop new skills and respond to market changes effectively.
Structural characteristics in organizational design
Work Specialization
Decision Making Authority
Layers of hierarchy
Formalization
What is span of control
Span of control refers to the number of individuals who report to a supervisor. Executives, managers, supervisors, and subordinates are hierarchically connected.
spans of control that are too large can slow an organization, making it difficult for supervisors to make decisions quickly. Many decisions must flow to the top, and the decision queue can become crowded. Flat organizations can be nimbler. When decisions are made, they can be communicated and implemented quickly.
What is formalization
Formalization refers to the extent to which rules, policies, and procedures govern the behavior of employees in the organization. The more formal the organization, the greater the written documentation, rules, and regulations. Some organizations are more loosely structured than others.
It can, however, restrict employees’ abilities to respond to unusual situations or customer needs as well as stifle creativity and innovation.
Departmentalization
Departmentalization refers to the way an organization groups its jobs and aligns effort.
Four common structures of departmentalization
functional, product, geographic, and matrix
Functional structure (departmentalization)
In a functional structure, departments are defined by the services they contribute to the organization’s overall mission, such as marketing and sales, operations, and HR. Traditionally, this has been the most common organizational structure.
product structure (departmentalization)
In a product structure, functional departments are grouped under major product divisions, each with its own marketing, sales, manufacturing, and finance functions.
This structure requires more employees but is compensated by the accumulated experience and expertise within each division.
geographic structure - departmentalization
A geographic structure is very similar to a product structure, with the exception that geographic regions or countries—rather than products—define the organizational chart.
Matrix structures
A matrix structure combines departmentalization by division or program and function to gain the benefits of both.
The matrix structure creates a dual rather than single chain of command. As a result, some employees report to two managers rather than one, with neither manager assuming a superior role.
advantages/disadvantages of functional structure
Easy to understand
Specializations develop
Economies of scale
Easier communication within functions
Clear career paths
Weaker customer or product focus
Potentially weak communication among functions
Weak grasp of broader organizational issues
Advantages/Disadvantages of product strucutre
Economies of scale
Product team culture
Product expertise
Cross-functional communication
Regional or local focus
Weak customer focus
Advantages/Disadvantages of Geographic structure
Proximity to customer
Adapted to local practices
Quicker response time
Cross-functional communication
Fewer economies of scale
Potential issues with consistency across regions (for example, practices, values, strategic focus)
Advantages/Disadvantages of Matrix structure
Combination of cross-disciplinary capabilities and perspectives
Availability of best global talent
Flexibility and agility
Complex reporting structures
Potential for conflicts between functions and projects over resources
Potential cultural conflicts on teams
what is a RACI matrix
RACI stands for responsible (R), accountable (A), consult (C), and inform (I). For any given activity, individuals will be assigned a certain role.
Delphi Technique
the Delphi technique is a structured group communication method used in HR to gather expert opinions on a specific issue through multiple rounds of questionnaires, anonymized feedback, and iterative refinement, aiming to reach consensus and improve decision-making
Force-Field Analysis
Force field analysis, a decision-making tool developed by Kurt Lewin, helps HR professionals and organizations understand the dynamics of change by identifying and evaluating the driving and restraining forces that influence a decision or initiative.
4 stages of team formation process according to Bruce Tuckerman
Forming, storming, norming, performing
Forming stage of team formation
Individuals come together around common activity and shared goals. Members are polite, but there is little sense of trust, shared experience, or common values.
storming stage of team formation
Storming. Individuals move past politeness, and there may be higher levels of discord as perspectives, styles, and agendas clash. This may be painful, but valuable communication is occurring.
Norming stage of team formation
Over time, effective groups build trust and establish relationships. They create rules that guide behavior. They begin to establish a group identity and to identify “outsiders.” This can sometimes take a negative form; “group think” can impel members to adopt the same positions and reject outside views. This can dampen innovation and creative problem solving.
Performing stage of team formation
The group becomes fully productive, collaborative, and mutually supportive.
three ways team structure can be shaped
diversity of skill, dispersion of authority, and longevity or permanence.
Team structure criteria: skill diversity
Skill diversity refers to the differences in knowledge, skills, and abilities among team members.
Teams with low skill diversity, like merchandisers, have interchangeable roles, while high skill diversity, such as in cross-functional teams, includes a wide range of expertise across various functions.
Team structure criteria: Authority dispersion.
Authority dispersion refers to where decision-making power is concentrated within a team, with low dispersion having a clear leader with final authority.
In teams with high authority dispersion, decision-making is shared and based on group consensus, with no single individual having overriding power.
Team Structure criteria: Permanence.
Permanence refers to the typical longevity of a team, with core functions like HR and marketing having high permanence.
Teams with low permanence, such as task forces, are assembled for specific issues and may only last for a short time
where does group dynamics occur (2 levels)
intergroup and intragroup
what is intragroup dynamics
dynamics between members of a group
what is intergroup dynamics
intergroup dynamics are between two different groups.
what are the three basic types of roles that people place within groups
Task roles, social roles and dysfunctional.
social - help maintain relationships and positive group
Task roles - help get stuff done
Dysfunctional: weaken group and reduce productivity
What is workforce managment
encompasses all activities needed to ensure that workforce size and competencies meet the organizations strategic needs
what is workforce planning
Workforce planning is the first step in the workforce management process, ensuring workforce size and competencies meet current and future needs.
It strategically aligns an organization’s human capital with its business direction by assessing the current workforce and future goals.
During workforce planning, the current workforce state is defined, gaps in size and competency are identified, and steps to prepare for future needs are developed.
“How can an organization align its workforce capabilities with its strategic plans, and what role does identifying the gap between required and existing competencies play in managing learning needs and budgets?”
An organization’s strategic plans should outline the workforce capabilities needed to execute business strategy, with a monetary value assigned to each capability based on its importance to generating revenue or reducing costs.
Employers should compare the required competencies with their current workforce to identify gaps, similar to managing a supply chain.
Identifying the gap between ideal and actual competencies helps align learning needs and budgets, ensuring focus on the skills necessary for executing the strategy.
what is a workforce analysis
A workforce analysis gathers data about the current workforce and forecasts future workforce needs. This information is analyzed to provide the data to support the organization’s staffing strategy.
six strategic areas of workforce analysis
strategic focus, supply analysis, demand analysis, gap analysis, solution analysis, and evaluating workforce planning impact.
