People Flashcards
What are the 3 levels of strategy?
Organizational level (vision)
Business unit level (how & where to focus)
Operational level (activities & actions)
What is strategy?
The planning of long-range goals and actions to obtain those goals.
What are some concepts for the creation and management of strategy?
Aligning effort
Controlling drift
Focusing on core competencies (knowing what the org. is good at)
Systems thinking
Using both culture and structure as a strategic level
With HR, which strategy level will be the main focus to support the organization?
The operational level
The end goal of this model by Porter is to create maximum value for the least possible cost.
Value Chain
What is the biggest role HR has in defining and creating value?
Knowing the workforce
What are the 4 basic stages of the strategy process?
Formulation
Development
Implementation
Evaluation
What does PESTLE stand for?
Political
Economic
Social
Technological
Legal
Environmental
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
What are the 4 phases in a business lifecycle?
Introduction
Growth
Maturity
Decline
What are Porter’s Five Forces that influence competitiveness?
Threat of new entrants
Threat of substitutes
Bargaining power of customers
Bargaining power of suppliers
Industry rivalry
What are 2 strategic investment tools?
Growth Share Matrix
GE-McKinsey Nine-Box Matrix
What does the Growth Share Matrix do?
Helps corporations analyze their product lines by comparing market share and market growth. When both increase, the companies are great. When both are low, it’s bad.
When growth is high but share is low, companies are questionable for investment. When share is high, but growth is low, companies can be good cash cows.
What does the GE-McKinsey Nine-Box Matrix do?
Offers a systematic approach for the decentralized corporation to determine where best to invest its cash by looking at 2 factors: the attractiveness of the relevant industry and the unit’s competitive strength within that industry.
A concise explanation of the organization’s reason for existence, purpose and overall intention.
Mission
Looks forward and creates a mental image of the ideal state the the organization wants to achieve, is inspirational.
Vision
The core principles that guide and direct the organization and its culture.
Values
What does SMARTER stand for?
Specific
Measurable
Attainable
Realistic
Timed
Evaluated
Revised
What are 6 ways to differentiate your product or service?
Product differentiation
Service differentiation
Channel differentiation
Relationship differentiation
Reputation/image differentiation
Price differentiation
What are Porter’s 4 primary competitive strategies?
Cost leadership
Differentiation
Cost focus
Differentiation focus
What is the opposite of merger?
Divestiture
A written or oral presentation that identifies a problem, analyzes various possible solutions, and makes a recommendation for implementing one of them.
Business Case
What are the steps in a business case?
Executive summary
Definition of the problem
Objectives
Possible solutions
Recommended solution
Implementation plan
Support documents
This is a type of project management tool that identifies in chronological bar graph order what needs to occur first and simultaneously in a step fashion. Visual monitoring.
Gantt Chart
What 4 roles does SHRM suggest HR professionals must play in change management?
Leader
Educator
Advisor
Demonstrator (LEAD)
What is the systematic process of measuring one’s performance against recognized leaders for the purpose of determining best practices?
Benchmarking
The quantitative investigation of the difference between actual and planned behavior.
Variance Analysis
Technique for isolating which factors really have an impact on the issue you’re studying.
Regression Analysis
Process of comparing business data over time to identify any consistent results or trends.
Trend Analysis
What are the 5 key emotional intelligence skills associated with successful leaders?
Self-awareness
Self-regulation
Motivation
Empathy
Social Skills
What are the 3 primary leadership theories?
Trait theory
Behavioral School
Situational (Contingency) School
This leadership theory focuses primarily on attributes that differentiate leaders from non-leaders.
Trait theory
What are the 5 traits of a leader identified in Trait theory?
Intelligence
Dominance
Self-Confidence
High levels of energy and vitality
Task or technical relevance knowledge
This leadership theory focuses on a leader’s ability to manage the performance and contribution of those they manage.
Behavioral School
McGregory’s Theory X suggests which management style?
Authoritative
McGregory’s Theory Y suggests which management style?
Participative
What are the 9 leadership styles identified by Blake-Mouton under the Behavioral School theory?
Impoverished - low concern for people and production
Country club - high concern for people, low for production
Produce or Perish - high concern for production, low for people
Middle-of-the-road - some concern for both people and production
Team - high concern for both
Opportunistic - adopt whatever benefits them
Paternalistic - praise and support but discourage challenges to their thinking
The Hershey-Blanchard situational leadership theory rests on what 2 fundamental concepts?
Leadership style
Individual or group’s maturity level
What are the 4 levels of maturity identified in the Hersey-Blanchard situational leadership theory?
M1 - employees lack skills and unable to unwilling to do the job (Telling)
M2- employees unable to take on responsibility for the job but are willing (Selling)
M3 - have skills to do the job but unwilling (Participating)
M4 - able and willing (Delegating)
Five primary dimensions to differentiate cultures.
Power distance
Individualism
Uncertainty avoidance
Masculinity
Long-term orientation
What are the 3 most common negotiation methods?
Soft - focus on value of relationship
Hard - focus on win over lose at all costs
Principled - focus on mutual gain
The departure of educated or professional people away from an employer to another one for better pay or conditions.
Brain Drain
What are the 5 employee lifecycles?
Recruitment and selection
Onboarding and orientation
Training and development
Performance management
Transition
Cost of Hire Formula - determines overall cost per person hired during any given time period
Cost per Hire = (External Costs) + (Internal Costs)/(Total # of Hires in Time Period)
Recruitment Cost Ratio (RCR) Formula - tells you how much you spent recruiting for every dollar of 1st year compensation paid to new hires. Lower the percentage, the better.
Recruitment Cost Ratio= (External Costs + Internal Costs)/Total 1st Year Compensation of Hires in Time Period)
Recruitment Yield Ratio (RYR) Formula
RYR = # of hires/# of interviews
Types of Interview Biases
Stereotyping
Inconsistency in questioning
First-impression error
Negative emphasis
Halo/horn effect
Nonverbal Bias
Contrast effect
Similar-to-me error
Cultural noise
What are the 3 types of professional HR engagement?
Trait engagement (personality)
Stage engagement (workplace environment)
Behavioral engagement (individual effort)
This theory by Herzberg asserts that employees have 2 categories of needs.
Herzberg’s Motivation-Hygiene Theory
Motivation - Intrinsic
Hygiene - Extrinsic
What are the 5 basic human needs in Maslow’s Hierarchy of Needs?
Physiological
Safety
Belonging and love
Esteem
Self-actualization
What are the 4 intervention strategies in Skinner’s Behavioral Reinforcement Theory?
Positive reinforcement
Negative reinforcement
Punishment
Extinction
This type of appraisal involves multiple people (peers, management, colleagues).
360-degree
Three types of category rating scales?
Graphic scale
Checklist
Forced choice
Four types of narrative evaluations?
Essay format
Critical incident
Behaviorally anchored rating scale (BARS)
Self-assessment
Errors in Performance Appraisal
Halo/Horn
Bias
Recency
Primacy
Strictness
Leniency
Central
Contrast
(these can be avoided with narrative methods)
Three obstacles for adult learners
Situational (environment)
Institutional (practices/procedures that discourage adults from learning)
Dispositional (attitudes/self-perception)
Kirkpatrick’s Four Levels of evaluation of trainings
Reaction
Learning
Behavior
Results
What does ADDIE stand for?
Analyze
Design
Develop
Implement
Evaluate
What are the 4 roles for managers in career development?
Coach (listen)
Appraiser (feedback)
Advisor (suggestions/recommendations)
Referral agent (consulting/linking to resources)
What 6 elements are included in Total Rewards?
Compensation
Benefits
Work-life effectiveness
Recognition
Performance management
Talent Development
Equal pay for different but equivalent work
Pay Equity
Performance fairly determines the pay for everyone with a certain job or that relative difficulty results in appropriate differences in pay rates between jobs.
Internal Equity
Comparisons with other competitive pay structures.
External Equity
Perlmutter’s 4 GLOBAL Headquarters Orientation strategies
Ethnocentric
Polycentric
Regiocentric
Geocentric
Tight control of international operations, benefits developed at headquarters and rolled out globally. Believes home country is best.
Ethnocentric
Subsidiaries treated as its own entity, local policies and practices. Believes businesses best run locally.
Polycentric
Operations managed regionally (like Africa). High communication within regions but less outside of it.
Regiocentric
Organization seen as single enterprise. Strategic plan that is global in operation.
Geocentric
The process of collecting and tabulating data.
Measures
Performance parameters based on the relationship between 2 or more measures.
Metrics
Converting a metric into a decision-supporting insight.
Analytics
The process of collecting information about a job.
Job Analysis
The systematic determination of the relative worth of jobs in an organization.
Job Evaluation
What are 2 methods of quantitative job evaluation?
Point-factor and factor comparison (often used in union negotiations)
What are 2 methods of non-quantitative job evaluations?
Job ranking and job classification
What are 3 ways to make survey date more accurate?
Aging
Leveling
Geography
A listing of grouped data from lowest to highest.
Frequency distribution
Range Spread Calculation
Maximum - Minimum/Minimum
Compa-Ratio
Indicators of how wages match, lead, or lag the midpoint - reflects market value.
Compa-ratio = Pay rate/Midpoint
Base Pay Compensation Systems
Single or Flat-Rate (everyone paid the same)
Time-Based Step Rate (seniority)
Automatic Step Rate (public sector/union)
Step Rate w/variability (performance considered)
Combo of Step Rate & Performance (anything above step rate requires superior performance)
Performance-Based Merit
Productivity-Based Compensation Systems
Straight Piece Rate (base rate of pay and awarded additional for output)
Differential Piece Rate (base rate up to production standard and higher rate when standard is exceeded)
Person-Based Compensation Systems
Knowledge-based (lawyers)
Skill-based (heavy equip operators)
Competency-based
A retirement plan in which the company contributes to the plan either its stock or money to buy its stock for the benefit of the company’s employees. Shares vest over time and employees never buys or holds the stock until terminated.
ESOP - Employee stock ownership plan
The right to purchase a share of stock in the future at a price predetermined at the grant.
ISO - Incentive Stock Options
A company-run program in which participating employees can purchase company shares at a discounted price and contribute through payroll deductions.
ESPPs - Employee stock purchase plans
An employee benefit plan that gives selected employees (sr. mgt.) many of the benefits of stock ownership w/o actually giving them stock.
Phantom stock plan (shadow stock)
Compensation offered by an employer to an employee in the form of company stock and receives it on a vesting schedule after achieving required performance/length milestones.
RSU - Restricted stock unit
Public companies can benefit from linking stock-based compensation to organizational performance.
Performance grants
Total company compensation expense formula
Pay + OT + Benefits + Bonuses/Total Costs
Four types of workers’ compensation wage replacement benefits
Income
Medical
Death
Burial
Two types of retirement plans
Defined benefit plan (DBP)
Defined contribution plan (DCP)
