People- HR STRATEGY Flashcards
Strategic Planning
Process of setting goals and designing a path toward a competitive position.
Strategic Management
Actions that leaders take to move their organizations towards the goals set in strategic planning and to create value for all stakeholders
What does Strategic Management provide an organization
1) Consistent Long term goals
2) Consistent decision making by leaders
3) Better Competitive and external vision
4) Better internal vision
Strategic Planning and Management Process steps
1)Formulation
2)Development
3)Implementation
4) Evaluation
Systems Thinking
Recognizing that organizations are composed of interacting and sometimes interdependent parts that together create a dynamic internal environment.
Environmental Scanning
Defined as a process of systematically surveying and gathering data from both internal and external sources, that can be analyzed to identify opportunities and threats and to strengthen strategic plans and goals
PESTLE Analysis
Type of Environmental Scan. Examples
P - Political. (Tax policies , govt legislation)
E - Economic . (Business forecast, household income)
S - Social, (values, housing patterns)
T- Technological (unequal access to tech)
L- Legal (trends in patent law , increased civil litigation)
E - Environmental (Increased use of alternative fuel Vehicles)
SWOT Analysis
Process for assessing an organizations strategic capabilities in comparison to threats and opportunities during environmental scanning.
S- What is organizations internal strengths
W - What are the organizations external weaknesses
O- What external opportunities are there
T- What external threats are there
Growth Share Matrix
The growth-share matrix is a tool that helps companies prioritize their products and services. It’s used to analyze a company’s portfolio and decide how to allocate resources.
The matrix is a table divided into four quadrants.
The x-axis represents market share, and the y-axis represents market growth rate.
Products are plotted in the matrix based on their market share and growth rate.
The matrix helps companies decide which products to keep, invest in, or sell.
The quadrants
Stars
High growth and high market share. Stars generate a lot of cash, but they also consume a lot of cash.
Cash cows
Low growth and high market share. Cash cows generate more cash than they consume.
Question marks
High growth and low market share. Question marks consume a lot of cash, but they don’t generate much cash.
Dogs
Low growth and low market share. Dogs are cash traps because they have little potential.
Scenario Analysis
Scenario analysis is a process that evaluates potential future events and their possible outcomes. It’s a tool used in finance and economics to make projections and help with decision-making.
Identify uncertainties: Consider what could change in the future
Consider possible outcomes: Think about what could happen in each scenario
Evaluate likelihood: Consider how likely each outcome is
Create scenarios: Develop scenarios that represent different possibilities
Analyze scenarios: Predict the results of each scenario
Make decisions: Use the results to plan and make decisions
Mission Statement
Specifies what activities the organizations intends to pursue and what course management has charted for the future - a concise statement of the organizations strategy.
Vision Statement
a vivid guiding image of the organizations desired future that it hopes to attain
Balanced Scorecard
A balanced scorecard (BSC) is a management tool that helps companies measure their performance and improve their strategy. It’s used to track how well an organization is executing its activities and achieving its goals. Looks at KPI’s
Finance, Customers, Internal business process, learning and growth
Benchmarking
Compares performance levels and/or processes of one entity with those of another to identify performance gaps and set goals aimed at improving performance
Strategic Fit
the consonance or compatibility of an organizations strategy with its external and internal environments
A low-cost airline like Southwest prioritizing efficiency and affordability to cater to budget-conscious travelers
Apple focusing on design and innovation to align with its customer base seeking high-quality aesthetics and user experience
A retail chain optimizing its supply chain to match consumer demand patterns, minimizing waste and maximizing operational efficiency
Porters competitive Strategies
Cost Leadership - aim at capturing markets share within industry with lowest price
Differentiation - aim for being able to charge higher price by offering something different from competitors in market
Strategic Alliance
A strategic alliance is a partnership between two or more businesses that work together to achieve mutual goals. Each company remains its own separate business entity.
Joint Venture
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
Equity Partnership
An equity partnership is a business where partners own a share of the company and share in its profits and losses. Equity partners are part-owners of the business and are usually involved in decision-making and management
Merger/Acquisition
A merger and acquisition (M&A) is a business transaction that involves the consolidation of two or more companies, or their assets.
Mergers
Franchising
Franchising is a business model where a person or group buys the right to sell a company’s products or services. The company that grants the license is called the franchisor, and the person or group that buys the license is called the franchisee.
Licensing
a local firm is granted the rights to produce or sell a product. A low-Risk entry strategy; avoids tariffs and quotas imposed on exports. However there is little control of the licensee’s activities and results
Contract Manufacturing
a firm arranges for a local manufacturer to produce components or produces as a means of lowering labor costs
Management Contract
Another company is brought in to manage and run the daily operations of the local business. Decisions about financing and ownership reside with the host-county owners
Turnkey Operation
A turnkey operation is a project or business that is ready to use as soon as it’s purchased. The term “turnkey” implies that the buyer can start using the product or business immediately, without the need for additional work.
greenfield operation
A greenfield operation is a new project or business that starts from scratch, without constraints from existing infrastructure or systems. The term comes from real estate, where a greenfield site is undeveloped land.
A company repurposes, through expansion or redevelopment, an abandoned, closed or underutilized industrial or commercial property
Specialized Project Management Approaches
Lean Project management: - Focus on eliminated waste
Six Sigma - Six Sigma views all work as processes that can be defined, measured, analyzed, improved, and controlled. Processes are a series of steps that take various inputs and produce outputs such as a product or a service. Understanding the relationship between the inputs and outputs is a key concept in Six Sigma. By controlling the inputs, you can control the outputs.
Agile project management: Agile project management is a project management approach that focuses on delivering a project in iterations, with a focus on customer feedback. It’s a flexible approach that allows teams to adapt to change.
Critical chain project management. Critical chain project management (CCPM) is a project management technique that helps teams complete projects efficiently by prioritizing tasks and monitoring resources. It’s a useful strategy for projects that are prone to delays or budget overruns.
Kaizen: Kaizen is an approach to creating continuous improvement based on the idea that small, ongoing positive changes can reap significant improvements. Typically, it is based on cooperation and commitment and stands in contrast to approaches that use radical or top-down changes to achieve transformation
Three levels of strategy
Organizational- future of org as a single unit
Business unit - ask questions on how and where business creates value
Operational- reflects how strategy works at functional level
What is job description
A job description is a written explanation that outlines the essential responsibilities and requirements for a vacant position. Job descriptions should be thorough, clear, and concise and include:
A brief introduction to the company and its mission.
An overview of the job responsibilities.
The necessary skills, competence levels, knowledge, and qualifications relevant candidates should have.
Testing that the company may require.
Working conditions and location. It should also cover whether the role is office-based, remote, or hybrid.
Job Competencies
Job competencies are the skills and abilities that an individual needs to perform their job well. They include technical skills, behavioral traits, and intellectual capabilities.
Job Specification
minimum qualification to do the job
essential functions
essential functions are the core duties of a job that an employee must be able to perform with or without reasonable accommodation They are fundamental to the job’s purpose and cannot be delegated to others.
Job analysis
Job analysis is the process of studying a job to understand its responsibilities, qualifications, and working conditions. It’s a useful tool for developing job descriptions, training programs, and performance management.
Sourcing
a precursor to actual recruitment. generates a pool of qualified and diverse applicants
Recruiting sources
Referrals (internal)
Job Posting ( internal n external)
Career fairs (external_
Cost of Hire
Cost of hire = Total hire/Number of new hires
cost per hire
CPH = sumexternalcost + suminternal cost/total # hires in time period
Time to fill
Time to fill is a metric that measures how many days it takes to fill a job opening. It’s calculated from the day a job requisition is posted to the day a new hire accepts the position.
Attrition
loss of employees due to reason other than firing and other employer - initiated events
