SHRM Flashcards
1
Q
Remuneration surveys
A
Used to collect information on prevailing market compensation and benefits practices, and allows an organization to check its remuneration structures against global and local trends.
2
Q
Pay compression
A
Occurs when there is only a small difference in pay between employees regardless of their experience, skills, or seniority.
3
Q
Gap Analysis
A
Compares organizational needs, employee needs, and the existing set of benefits to identify the benefits that best match the needs of the organization and its employees.
4
Q
Utilization Review
A
An audit of benefits used and charges to identify which benefits are used and to make certain that costs are appropriate.
5
Q
Perquisites
A
Special incidental payments, benefits, or privileges given to individuals over and above their regular rewards. Often awarded to senior-level positions, “perks” may extend to furnished housing, luxury transportation, and membership in exclusive clubs.
6
Q
External equity
A
Employees’ perceptions that they are being fairly compensated in terms of what employers in the same labor market would offer.
7
Q
Internal equity
A
perceptions of fair compensation in terms of the work for the employer. Strategic and cultural alignment are objectives for compensation systems.
8
Q
Nonqualified Deferred Compensation Plans
A
Allows organizations to provide additional benefits to a select group of key executives, which motivates them to stay with the organization.
9
Q
Market-based Approach
A
Looks at external data to form the basis for market pricing.
10
Q
Differential Piece Rate System
A
The employee receives one piece-rate up to the standard and then a higher rate once the standard has been exceeded. This type of system provides employees with a pay basis but then links the attainment of certain productivity goals or achievements directly to their pay.
11
Q
Gap Analysis
A
Compares organizational needs, employee needs, and the existing set of benefits to identify the benefits that best match the needs of the organization and its employees.
12
Q
Pay Compression
A
Compares organizational needs, employee needs, and the existing set of benefits to identify the benefits that best match the needs of the organization and its employees.
13
Q
Performance Bonus Approach
A
An advantage to the organization because other wages and benefits linked to the base rate, such as overtime, shift premium, sick pay, and life insurance, are not impacted.
14
Q
3 Major areas of HR’s Involvement in Strategy
A
- Participating in creating the organizational goals
- Combining HR’s functional strategy with the organizational strategy
- Supporting other functions as they work to fulfill their own strategic goals.
15
Q
4 P’s of Marketing
A
- Price (how much to charge)
- Product (what to offer)
- Promotion (how to reach potential customers)
- Place (where or how to sell).
16
Q
Human Capital Value
A
Shows the productivity of retained employees, due perhaps to HR processes such as training for employees and supervisors and compensation strategies.
17
Q
Co-sourcing
A
Locates contractors within the HR organization so there’s managerial control over the contractor.
Arrangement in which an enterprise and a vendor share different tasks within a larger complex, often strategic responsibility.
18
Q
Participative Organizational Cultures
A
The organization’s members embrace collaborative problem solving and decision-making.
19
Q
Market Oriented Culture
A
Might pay less attention to the people aspects of the change and more attention to operational and financial results.
20
Q
Organic Cultures
A
Have fewer job boundaries, decision-making levels, and rules
21
Q
Authoritarian Culture
A
Only the top leaders are involved in decision-making.
22
Q
Compliance Audits
A
Focus on response to regulatory requirements
23
Q
Research & Development
A
Responsible for new product design and development, and sales of those products/services will create future revenue.
24
Q
HR audit
A
A systematic and comprehensive evaluation of an organization’s HR policies, practices, procedures, and strategies.
25
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.
26
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.
27
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.
28
Center of Excellence
An organizational structure that leverages staff expertise in certain areas to improve the entire organization's strategic performance.
29
Service Level Agreement
Part of a service contract where the service expectations are formally defined.
30
Chain of Command
Line of authority within an organization.
31
RACI matrix
Defines roles in terms of whether a person or group is responsible for performing a task, accountable to management for the performance, consulted for input into the activity, or informed of progress.
32
Numerical Rating
A quantifiable measure of desired customer service goals, and it serves as a baseline to measure performance.
33
Departmentalization
Describes the way an organization groups its tasks and then aligns those groups for better effectiveness and efficiency.
34
Organizational Development
Interventions aimed at improving the overall short- and long-term performance of an organization.
35
Gap Analysis
Seeks to identify reasons for a discrepancy between goals and actual performance.
36
Strategic planning
Process of setting goals, objectives, and action plans.
37
Organizational Intervention
Focuses on change at the organizational rather than team or individual level, and sets measurable objectives so that the effectiveness of the intervention can be assessed.
38
Product Structure
Have separate divisions for different products, and each division has its own functional departments.
39
Group Think
Occurs when members value a shared identity so much that innovation and creative problem solving (which may entail disagreement) is hampered.
40
Formalization
Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.
41
Span of Control
Refers to the number of individuals who report to a supervisor.
42
Organizational Development
Process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions.
43
Geographic Structure
Organizational structure in which geographic regions define the organizational chart.
44
Functional Structure
Organizational structure in which departments are defined by the services they contribute to the organization's overall mission, such as marketing and sales, operations, and HR.
45
Matrix Structure
An organizational structure that combines departmentalization by division and function to gain the benefits of both; results in some employees reporting to two managers rather than one, with neither manager assuming a superior role.
46
Line Units
Workgroups that conduct the major business of an organization.
47
Staff Units
Workgroups that assist line units by providing specialized services, such as HR.
48
Product Structure
Organizational structure in which functional departments are grouped under major product divisions.
49
Kenneth Benne and Paul Sheats proposed that there are 3 basic types of roles individuals play within groups.
1. Task roles help get the work done.
2. Social roles help maintain relationships and positive group function.
3. Dysfunctional roles weaken the group and reduce its productivity.
50
Workforce Analysis
Allows HR to mine employee data, evaluate the internal environment, and forecast future external conditions. HR professionals can use the analysis to support and sustain organizational objectives and strategies.
51
Managed services, or outsourcing
Allows an outside organization to fully run and staff the department.
52
Knowledge Management Systems
These systems facilitate access and exchange of information, expertise, and learning throughout the organization.
53
4 Steps of Workforce Planning
1. Supply Analysis (Where are we now?)
2. Demand Analysis (Where do we want to be?)
3. A Gap Analysis (What is lacking?)
4. Solution Analysis (What can we afford?).
54
Job Sharing
The practice of having two different employees perform the tasks of one full-time position.
55
On-Call Workers
Employees who report to work only when needed.
56
Seasonal Workers
Work only when needed to fulfill the ebb and flow of seasonal demands.
57
Contract Workers
Used for long-term projects
58
Simulations
Representations of real situations; give organizations the opportunity to speculate as to what would happen if certain courses of action were pursued.
59
Talent Management
Development and integration of HR processes that attract, develop, engage, and retain the knowledge, skills, and abilities of employees that will meet current and future organizational needs.
60
Knowledge Management
Process of creating, acquiring, sharing, and managing knowledge to augment individual and organizational performance.
61
Joint Employment
The situation in which an organization shares responsibility and liability for their alternative workers with an alternative staffing supplier; also known as co-employment.
62
Due Diligence
Process of investigating a decision thoroughly before finalizing it to identify all potential factors that could affect the positive and negative impacts of the decision.
63
Turnover Rate
An annualized formula that tracks the number of separations and the total number of workforce employees per month.
64
Downsizing
Termination of employment of individual employees or groups of employees for reasons other than performance, for example, economic necessity or restructuring; also known as a reduction in force (RIF).
65
Workforce Planning
Activities needed to ensure that workforce size and competencies meet current and future organizational and individual needs.
66
Workforce Management
All activities needed to ensure that workforce size and competencies meet the organization's strategic needs.
67
Judgemental Forecasts
Use of information from past and present to predict future conditions.
68
Restructuring
Act of reorganizing the legal, ownership, operational, or other structures of an organization.
69
Turnover
Act of replacing employees leaving an organization; attrition or loss of employees.
70
Succession Planning
Process of implementing a talent management strategy for identifying and fostering the development of high-potential employees or other job candidates who, over time, may move into leadership positions of increased responsibility.
71
Workforce Analysis
A systematic approach to anticipate human capital needs and data HR professionals can use to ensure that appropriate knowledge, skills, or abilities will be available when needed to accomplish organizational goals and objectives.
72
Replacement Planning
"Snapshot" assessment of the availability of qualified backup for key positions. This helps meet short-term goals.
73
Workforce Analysis Process
1. Supply analysis - Where are we now? What do we have?
2. Demand analysis - Where do we want to be?
3. Gap analysis - What is lacking. what knowledge, skills, or abilities currently exist and are needed in the future?
4. Solution analysis.- What can we afford?
74
Freedom of Association
Freedom of association is the right of workers to join (or not join) an organization of their choosing without prior authorization by their employer.
75
Wildcat strikes
Work stoppages that are neither sanctioned nor stimulated by the union, although union officials may be aware of them.
76
An Unfair Labor Practice (ULP)
A violation by an employer or a union of a country's labor laws.
77
A Chosen Officer Alternative Dispute Resolution (ADR) System
Allows employees to select an arbiter from a list of managers/officers.
78
Works Councils
Composed of workers and management representatives. Their purpose is to promote communication between management and employees on issues that affect workers' interests.
79
Single Designated Officer Approach
Designates and empowers a specific individual within the organization to investigate and resolve disputes.
80
Constructive Discipline
Gives employees an opportunity to understand expectations and change behavior. This demonstrates organizational support of performance improvement.
81
A Policy
A broad statement that reflects an organization's philosophy, objectives, or standards concerning a particular set of management or employment activities.
82
Peer Review Panels
Trained panels of employees (or employees and managers) that hear and resolve employee complaints.
83
Industrial actions
Various forms of collective employee actions taken to protest work conditions or employer actions.
84
Non-disclosure statements
A common form of post-employment agreement, especially in knowledge industries, in which employee agrees not to discuss knowledge gained during employment.
85
Arbitration
Method of dispute resolution by which disputing parties agree to be bound by the decision of one or more impartial persons to whom they submit their dispute for final determination.
86
Intellectual Property
Ownership of innovation by an individual or business enterprise; includes patented, trademarked, or copyrighted property.
87
Lockout
The action of an employer to shut down operations to prevent employees from working.
88
Alternative dispute resolution (ADR)
Umbrella term for the various approaches and techniques, other than litigation, that can be used to resolve a dispute.
89
Grievance procedure
Orderly way to resolve differences of opinion.
90
Project labor agreement (PLA)
The agreement requires specific contractors to accept certain conditions in project contracts, such as paying a fair wage and contributing to health insurance, pension, and training funds.
91
Labor Union
Group of workers who coordinate their activities to achieve common goals in their relationship with an employer or group of employers; also called trade union.
92
Picketing
Positioning of employees at a place of work targeted for the action for the purpose of the protest.
93
Constructive Discipline
Form of corrective discipline that implements increasingly severe penalties for employees.
94
Secondary Action
An attempt by a union to influence an employer by putting pressure on another employer, for example, a supplier.
95
Employment-At-Will
Principle of employment in the U.S. that employers have the right to hire, fire, demote and promote whomever they choose for any reason unless there is a law or contract to the contrary and that employees have the right to quit a job at any time.
96
Conciliation
Method of nonbinding dispute resolution by which a neutral third party tries to help to dispute parties reach a mutually agreeable decision; also called mediation
97
Sit-down Strike
Refusal by workers to work; also refusal by workers to leave their workstations, making it impossible for the employer to use replacement workers.
98
Work-to-Rule
The situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions.
99
Trade Union
Group of workers who coordinate their activities to achieve common goals in their relationship with an employer or group of employers; also called labor union.
100
Non-compete agreement (NCA)
A common form of post-employment agreement that prevents employees from leaving to work for one of employer's competitors.
101
Mediation
Method of nonbinding dispute resolution by which a neutral third party tries to help disputing parties reach a mutually agreeable decision; also called conciliation.
102
Codetermination
Form of corporate governance that requires a typical management board and a supervisory board and that allows management and employees to participate in strategic decision making.
103
Collective Bargaining
The process by which management and union representatives negotiate the employment conditions for a particular bargaining unit for a designated period of time
104
Sympathy Strike
Action taken in support of another union that is striking the employer.
105
Industrial Actions
Various forms of collective employee actions taken to protest work conditions or employer actions.
106
The International Labour Organization
| (ILO) has identified eight core labor standards
1. Freedom of Association and Protection of the Right to Organize
2. Right to Organize and Collective Bargaining
3. Forced Labor
4. Abolition of Forced Labor
5. Minimum Age
6. Worst Forms of Child Labor
6. Equal Remuneration, requiring equal pay and benefits for men and women
7. Discrimination
107
Business Case
Outlines the allocation of organizational resources to strategic initiatives (such as applicant tracking systems).
108
Data analytics
The process of studying data to detect patterns and relationships that can be used to make predictions and improve decisions. The challenge of data analytics for HR is to identify what data should be captured and how to use the data to model and predict capabilities so the organization gets an optimal return on investment on its human capital.
109
Software as a Service
Software that is owned, delivered, and managed remotely by one or more providers and is delivered over the Internet.
110
What are the three requirements of Big Data?
1. Volume - the ability to store massive amounts of data
2. Velocity - the ability to refresh data rapidly
3. Variety - Importing, storing, and integrating data in different formats
111
Self-service Technology
Relieves HR of many data entry/revision tasks; managers and employees can perform these transactions themselves.
112
An Integrated Information System
Allows functions throughout the organization to access the same data in a timely manner and analyze it to gain insight and test solutions.
113
Big Data
Provides real-time information. Data is updated continuously, providing instant access to information needed for timely decisions.
114
Information System (IS)
A way to collect, organize, store, analyze, and share data.
115
Presentation Tier
The point at which the user can enter requests and receive responses.
116
Cloud Computing
Style of computing in which scalable IT-enabled capabilities are delivered as a service using Internet technologies.
117
Firewalls
Software and/or hardware that filters incoming and outgoing communication according to preset rules.
118
Human resource information system (HRIS)
Information technology framework and tools for gathering, storing, maintaining, retrieving, revising, and reporting HR data.
119
Social Engineering
In a computer context, tricking a user into sharing information that can then be used to access systems.
120
Applicant Tracking System
A software application that automates organizations' management of the recruiting process (such as accepting application materials, screening applicants, etc.).
121
Hacking
Act of deliberately accessing computer data without permission.
122
Artificial Intelligence
The ability of a computer to imitate human thought and behavior.
123
Information system (IS)
Way to collect, organize, store, analyze, and share data.
124
Social Networks
Online clustering of individuals in groups with common or shared interests.
125
Encryption
Conversion of data into a format that protects or hides its natural presentation or intended meaning.
126
Localization
Enables an organization to place greater emphasis on local customers, products, partners, and labor sources. It also enables an organization to meet specific legal and cultural requirements and become a part of local networks.
127
Polycentric Approach
A subsidiary's cultural norms are more likely to be understood. Local compensation and benefits policies, programs, and practices are more likely to be implemented.
128
Transnational Corporation
Builds strong local and global identities. Ideas flow not only from headquarters to the subsidiaries but among subsidiaries and to headquarters. Localized processes and practices meet cultural and legal requirements in each market, and knowledge and experience are shared globally.
129
Hyperconnectivity
Increasing digital interconnection of people and things-anytime and anyplace. It is the purely digital/virtual aspect of globalization's "accelerating interconnectedness.
130
International organizations
They export their products or services to foreign countries. While they may open production facilities or service centers in those countries, the products/services, processes, and strategies are developed in the home country.
131
Globalists
Spend their entire careers in international assignments, moving from one locale to another.
132
Work Permit
The official document giving a foreigner permission to take a job in a country.
133
Geocentric Global Orientation
The organization is viewed as a single international business. Headquarters and subsidiaries work together as one team.
134
Upstream/Downstream Model
Where an organization keeps strategy at the corporate or upstream level since it does not require local adaptations.
135
Offshoring
The practice of relocating processes or production to another country.
136
Geocentric Organization
An international company is seen as a team, with management talent coming from any location in the enterprise. The strategic plan is to balance the global strategy with local culture and regulations.
137
Letter of Assignment
It evolves from the assignment plan and addresses the business aspects of the assignment as well as compensation, benefits, and local work rules. Taking the time to ensure that the information provided is clearly articulated, thorough, consistent, and unambiguous sets clear and reasonable expectations between the employer and the employee. In turn, this information sets the stage for a successful first-time international assignment.
138
Ethnocentric Orientation
Follows the strategies, policies, and practices of the headquarters.
139
"Pull" Factors
Those attractions to globalization that support what an organization wants to achieve—in this case, greater control over strategic goals.
140
"Push" Factors
Ones that oblige an organization to go global to remain competitive.
141
Near-shoring
Practice of contracting a part of business processes or production to an external company in a country that is relatively close (e.g., within the same own region).
142
Multinational enterprises (MNEs)
Organizations that own or control production or service facilities in one or more countries other than the home country.
143
Globalization
Status of growing interconnectedness and interdependency among countries, people, markets, and organizations worldwide.
144
Local responsiveness (LR)
Globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems
145
Identity alignment
The extent to which diversity is embraced in the management of people, products/services, and branding
146
Onshoring
Relocation of business processes or production to a lower-cost location inside the same country as the business.
147
Offshoring
The method by which an organization relocates its processes or production to an international location through subsidiaries or third-party affiliates.
148
Outsourcing
The process by which an organization contracts with third-party vendors to provide selected services/activities instead of hiring new employees.
149
Redeployment
The process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country.
150
Global integration (GI)
Globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.
151
Reverse innovation
Innovations created for or by emerging-economy markets and then imported to developed-economy markets.
152
Repatriation
The process by which employees returning from international assignments reintegrate into their home country's culture, conditions, and employment.
153
Assignees
Employees who work outside their home countries.
154
Process alignment
The extent to which underlying operations such as IT, finance, or HR integrate across locations.
155
Diversity Council
A management-level task force established to define and promote an organization's diversity and inclusion initiatives.
156
Risk Appetite
Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.
157
Risk Control
Action taken to manage a risk.
158
Residual Risk
Amount of uncertainty that remains after all risk management efforts have been exhausted.
159
Contingency Plan
The protocol that an organization implements when an identified risk event occurs.
160
Conflict of interest
The situation in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes.
161
Risk Position
Organization's desired gain or acceptable loss in value.
162
Risk tolerance
Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.
163
Whistleblowing
Reporting of an organization's violations of policies and processes by employees.
164
Hazard
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
165
Single loss expectancy (SLE)
Expected monetary loss every time a risk occurs; calculated by multiplying asset value by exposure factor.
166
Risk
The uncertainty that has an effect on an objective, where outcomes may include opportunities, losses, and threats.
167
Principal-agent problem
The situation in which an agent (e.g., an employee) makes decisions for a principal (e.g., an employer) potentially on the basis of personal incentives that may not be aligned with the principal's incentives.
168
Annualized loss expectancy (ALE)
Expected monetary loss for an asset due to a risk over a one-year period; calculated by multiplying single loss expectancy by an annualized rate of occurrence.
169
Moral hazard
The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.
170
Key risk indicators (KRIs)
Metrics that provide an early signal of increasing risk exposures for an enterprise.
171
Risk scorecard
The tool used to gather individual assessments of various characteristics of risk (e.g., frequency of occurrence; degree of impact, loss, or gain for the organization; degree of efficacy of current controls).
172
Risk management
System for identifying, evaluating, and controlling actual and potential risks to an organization.
173
Duty of care
The principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.
174
After-action Report
Examines what happened, why it happened, what was done at the time, and what could have been done better.
175
Moral Hazard
Exists when someone takes risks because he or she will not be affected by losses or damages that occur as a result.
176
Risk tolerance
Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.
177
Duty of care
Principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.
178
Annualized loss expectancy (ALE)
Expected monetary loss for an asset due to a risk over a one-year period; calculated by multiplying single loss expectancy by annualized rate of occurrence.
179
Single loss expectancy (SLE)
Expected monetary loss every time a risk occurs; calculated by multiplying asset value by exposure factor.
180
Risk position
Organization's desired gain or acceptable loss in value.
181
Risk scorecard
The tool used to gather individual assessments of various characteristics of risk (e.g., frequency of occurrence; degree of impact, loss, or gain for the organization; degree of efficacy of current controls).
182
Contingency plan
The protocol that an organization implements when an identified risk event occurs.
183
Residual risk
Amount of uncertainty that remains after all risk management efforts have been exhausted.
184
Hazard
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
185
Risk
The uncertainty that has an effect on an objective, where outcomes may include opportunities, losses, and threats.
186
Whistleblowing
Reporting of an organization's violations of policies and processes by employees.
187
Risk control
Action is taken to manage risk.
188
Key risk indicators (KRIs)
Metrics that provide an early signal of increasing risk exposures for an enterprise.
189
Risk appetite
Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management goals.
190
Moral hazard
The situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.
191
Risk management
System for identifying, evaluating, and controlling actual and potential risks to an organization.
192
Principal-agent problem
The situation in which an agent (e.g., an employee) makes decisions for a principal (e.g., an employer) potentially on the basis of personal incentives that may not be aligned with the principal's incentives.
193
3 Spheres of Sustainability
Environmental, economic, and social
194
Corporate social responsibility (CSR)
Varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses; includes such areas as philanthropy, volunteerism, corporate-sponsored community programs, social change, sustainability, corporate governance, employee rights, and workplace safety.
195
Ethics
Set of behavioral guidelines that an organization expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards.
196
Sustainability
The practice of purchasing and using resources wisely by balancing economic, social, and environmental concerns, with the goal of securing the interests of present and future generations.
197
Compliance
State of being in accordance with all national, federal, regional, and/or local laws, regulations, and/or other government authority requirements applicable to the places in which an organization operates.
198
Triple bottom line
Economic, social, and environmental impact metrics used to determine an organization's success.
199
Governance
System of rules and processes set up by an organization to ensure its compliance with local and international laws, accounting rules, ethical norms, internal codes of conduct, and other standards.
200
Immigration Reform and Control Act (IRCA
U.S. act prohibits discrimination against job applicants on the basis of national origin or citizenship and establishes penalties for hiring undocumented workers.
