SHRM Flashcards
Remuneration surveys
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.
Pay compression
Occurs when there is only a small difference in pay between employees regardless of their experience, skills, or seniority.
Gap Analysis
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.
Utilization Review
An audit of benefits used and charges to identify which benefits are used and to make certain that costs are appropriate.
Perquisites
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.
External equity
Employees’ perceptions that they are being fairly compensated in terms of what employers in the same labor market would offer.
Internal equity
perceptions of fair compensation in terms of the work for the employer. Strategic and cultural alignment are objectives for compensation systems.
Nonqualified Deferred Compensation Plans
Allows organizations to provide additional benefits to a select group of key executives, which motivates them to stay with the organization.
Market-based Approach
Looks at external data to form the basis for market pricing.
Differential Piece Rate System
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.
Gap Analysis
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.
Pay Compression
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.
Performance Bonus Approach
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.
3 Major areas of HR’s Involvement in Strategy
- 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.
4 P’s of Marketing
- Price (how much to charge)
- Product (what to offer)
- Promotion (how to reach potential customers)
- Place (where or how to sell).
Human Capital Value
Shows the productivity of retained employees, due perhaps to HR processes such as training for employees and supervisors and compensation strategies.
Co-sourcing
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.
Participative Organizational Cultures
The organization’s members embrace collaborative problem solving and decision-making.
Market Oriented Culture
Might pay less attention to the people aspects of the change and more attention to operational and financial results.
Organic Cultures
Have fewer job boundaries, decision-making levels, and rules
Authoritarian Culture
Only the top leaders are involved in decision-making.
Compliance Audits
Focus on response to regulatory requirements
Research & Development
Responsible for new product design and development, and sales of those products/services will create future revenue.
HR audit
A 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.
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.
Center of Excellence
An organizational structure that leverages staff expertise in certain areas to improve the entire organization’s strategic performance.
Service Level Agreement
Part of a service contract where the service expectations are formally defined.
Chain of Command
Line of authority within an organization.
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.
Numerical Rating
A quantifiable measure of desired customer service goals, and it serves as a baseline to measure performance.
Departmentalization
Describes the way an organization groups its tasks and then aligns those groups for better effectiveness and efficiency.
Organizational Development
Interventions aimed at improving the overall short- and long-term performance of an organization.
Gap Analysis
Seeks to identify reasons for a discrepancy between goals and actual performance.
Strategic planning
Process of setting goals, objectives, and action plans.
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.
Product Structure
Have separate divisions for different products, and each division has its own functional departments.
Group Think
Occurs when members value a shared identity so much that innovation and creative problem solving (which may entail disagreement) is hampered.
Formalization
Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.
Span of Control
Refers to the number of individuals who report to a supervisor.
Organizational Development
Process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions.
Geographic Structure
Organizational structure in which geographic regions define the organizational chart.
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.
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.
Line Units
Workgroups that conduct the major business of an organization.
Staff Units
Workgroups that assist line units by providing specialized services, such as HR.
Product Structure
Organizational structure in which functional departments are grouped under major product divisions.
Kenneth Benne and Paul Sheats proposed that there are 3 basic types of roles individuals play within groups.
- Task roles help get the work done.
- Social roles help maintain relationships and positive group function.
- Dysfunctional roles weaken the group and reduce its productivity.
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.
Managed services, or outsourcing
Allows an outside organization to fully run and staff the department.
Knowledge Management Systems
These systems facilitate access and exchange of information, expertise, and learning throughout the organization.
4 Steps of Workforce Planning
- Supply Analysis (Where are we now?)
- Demand Analysis (Where do we want to be?)
- A Gap Analysis (What is lacking?)
- Solution Analysis (What can we afford?).
Job Sharing
The practice of having two different employees perform the tasks of one full-time position.
On-Call Workers
Employees who report to work only when needed.
Seasonal Workers
Work only when needed to fulfill the ebb and flow of seasonal demands.
Contract Workers
Used for long-term projects
Simulations
Representations of real situations; give organizations the opportunity to speculate as to what would happen if certain courses of action were pursued.
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.
Knowledge Management
Process of creating, acquiring, sharing, and managing knowledge to augment individual and organizational performance.
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.
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.
Turnover Rate
An annualized formula that tracks the number of separations and the total number of workforce employees per month.
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).
Workforce Planning
Activities needed to ensure that workforce size and competencies meet current and future organizational and individual needs.
Workforce Management
All activities needed to ensure that workforce size and competencies meet the organization’s strategic needs.
Judgemental Forecasts
Use of information from past and present to predict future conditions.
Restructuring
Act of reorganizing the legal, ownership, operational, or other structures of an organization.
Turnover
Act of replacing employees leaving an organization; attrition or loss of employees.
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.
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.
Replacement Planning
“Snapshot” assessment of the availability of qualified backup for key positions. This helps meet short-term goals.
Workforce Analysis Process
- Supply analysis - Where are we now? What do we have?
- Demand analysis - Where do we want to be?
- Gap analysis - What is lacking. what knowledge, skills, or abilities currently exist and are needed in the future?
- Solution analysis.- What can we afford?
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.
Wildcat strikes
Work stoppages that are neither sanctioned nor stimulated by the union, although union officials may be aware of them.
An Unfair Labor Practice (ULP)
A violation by an employer or a union of a country’s labor laws.
A Chosen Officer Alternative Dispute Resolution (ADR) System
Allows employees to select an arbiter from a list of managers/officers.
Works Councils
Composed of workers and management representatives. Their purpose is to promote communication between management and employees on issues that affect workers’ interests.
Single Designated Officer Approach
Designates and empowers a specific individual within the organization to investigate and resolve disputes.
Constructive Discipline
Gives employees an opportunity to understand expectations and change behavior. This demonstrates organizational support of performance improvement.
