People - HR Strategy (Formulation) Flashcards
Which specific and measurable strategic aspect serves as the basis for implementation decisions?
Answer: Objectives
Objectives tie to strategic goals, which in turn relate to the mission statement. Objectives are the most specific and measurable of the strategic statements.
Wrong Answers:
Mission Statement
Strategic Goals
Value Statement
Strategy Formulation
An organization hires only experienced people who tend to stay with the organization at least five years. Where would this information be identified in a SWOT analysis?
An organization completes a SWOT analysis to analyze internal strengths and weaknesses and external threats and opportunities.
The organization’s experienced, loyal workforce would be considered a strength.
The key wording here is “Strength”. Strengths and Weaknesses are internal (loyal workforce).
Opportunities and threats are external.
Strategy Formulation
At what stage of the strategic planning process is a SWOT analysis performed?
Formulation
The strengths, weaknesses, opportunities, and threats (SWOT) analysis is done during the strategy formulation stage to test the advisability of different potential strategies.
Stages:
Formulation
Development
Implementation & Evaluation
A company has achieved excellent results through perceptive market timing and aggressive marketing but still has problems with back orders. Slow shipments and shipping errors are largely due to interdepartmental communication lapses.
How would this finding be classified in a SWOT analysis?
As a weakness
In the SWOT technique, a weakness is an element internal to an organization that is holding the organization back from meeting its strategic goals. Communication issues between departments can weaken productivity and inhibit performance toward organizational goals.
The key wording here is “Weakness”. Strengths and Weaknesses are internal (loyal workforce).
Opportunities and threats are external.
Which is an example of a demographic factor that is examined during an environmental scan?
When examining demographic factors during an environmental scan, organizations should examine age, gender, generational differences, geographic shifts in population, ethnicity, unskilled labor, and the nontraditional labor force. The other items should be considered while examining other factors during the scan.
Which sections of the balanced scorecard include two types of measures that directly impact financial results?
Customer and operations
Operations measures lead to customer or external measures, which in turn relate to financial results.
The former measures are leading indicators; financial results are lagging indicators.
A service organization determines that it has limited international experience and knowledge and that this is preventing it from delivering services to those in need on a global basis.
What does this exemplify?
Weakness
This is an example of an internal problem or weakness. In a SWOT analysis, strengths and weaknesses reflect the internal environment of the organization and opportunities and threats pertain to the external environment.
Which is an example of an external factor that is considered in a SWOT analysis?
Local legal policies
Local legal policies exist outside an organization and are an external factor. The other factors are internal.
Internal factors could include (but not limited too)
- Organization structure
- Company Culture
- Strategy
How must HR strategy account for political factors?
Answer: By adjusting organizational policies to comply with varying environmental regulations in different locations
Explained: Environmental regulations are an example of regulations that vary from location to location and may change as the political environment shifts.
Labor availability and costs refers to an economic force, innovative technology refers to a technological force, and employment laws refer to a legal force.
In a growth-share analysis which business would be considered a question mark?
Business line with steady growth in new market segment
A question mark in the growth-share matrix may be a winner or a loser with an unclear future. As this business line is showing growth in a new market, it would be a question mark. There is an uncertain future in the new market.
Which best describes how an organization should use a growth-share matrix?
Answer: To prioritize investment in and allocation of resources
Explanation: The growth-share matrix and similar tools are used to prioritize investment by identifying where in the organization the greatest value lies. The assumptions are that a growth trend (rather than stasis or decline) predicts greater value and a larger market share indicates a stronger competitive position.
How can HR provide the most value in the strategic planning process?
Answer: By identifying the HR implications of the company’s strategy
Explained: HR can provide the most value by ensuring that all HR implications are identified and fully considered. To do this, HR must be involved in the early stages of strategy development so they can be aware of and influence the organizational goals. HR also brings knowledge of the internal and external environments in which the company operates.
How does the use of benchmarking improve the creation of an organizational strategy?
Answer: It allows for an understanding of best practices.
Explained: Benchmarks are aspirational in that they are intended to improve performance. They must, therefore, be based on best practices drawn from the activities and achievements of organizations. Performance can be affected by culture. Even statistics can be culturally biased. For example, in some cultures statistics such as health-care cost per employee or employee tenure may not be meaningful. Benchmarks often address values, such as customer service, ethical behavior, or quality. They are goals and do not replace financial measures, which provide valuable snapshots of performance.
How can HR involve employees in supporting the organization’s goals and mission?
Answer: Have individuals and departments develop goals that link to those of the company.
Explained: Once the strategic direction of the organization has been determined, groups or individuals can meet with management to discuss their related goals and formulate strategies and tactics to achieve them. This type of participatory involvement will allow employees to make valuable contributions to the strategic plan, and employees will be more motivated to achieve their goals.
What is the primary advantage of a balanced scorecard approach to measuring organizational performance?
Answer: It allows organizations to assess intangibles.
Explained: A balanced scorecard approach focuses on finance, customers, internal processes, and learning and growth. Therefore, it goes beyond a traditional financial approach to managing the organization. It takes into consideration such intangibles as whether a business process has been improved or employees have learned new skills. It can be used in a single department or throughout the organization.
