SHRM Competency Flashcards
Accounts payable
Money an organization owes its vendors and suppliers
Accounts receivable
Money an organization’s customers owe the organization
Affinity diagramming
Data-sorting technique in which a group categorizes and subcategorizes data until relationships are clearly drawn.
Assets
Financial, physical, and sometimes intangible properties an organization owns.
Balance sheet
Statement of an organization’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity
Bribery
Exchange of anything of value to gain greater influence or preference
Business case
Presentation to management that establishes that a specific problem exists and argues for a proposed solution. `
Business intelligence
Ability to use information to gain a deeper understanding of an organization and make sound business decisions
Cash flow statement
Statement of an organization’s ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing.
Civil law
Legal system based on written codes (laws, rules, or regulations).
Code of conduct
Principles that guide decision making and behavior in an organization.
Common law
Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.
Confidentiality
Treatment of personal information that has been disclosed to another person or organization.
Cultural intelligence
Capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts
Culture
Basic beliefs, attitudes, values, behaviors, and customs shared and followed by members of a group, which give rise to the group’s sense of identity`
Delphi technique
Technique that progressively collects information from a group of anonymous respondents.
Due process
Concept that laws are enforced only through accepted, codified procedures.
Emotional intelligence (EI)
Ability to be sensitive to and understand one’s own and others’ emotions and impulses.
Equity
Amount of owners’ or shareholders’ portion of a business.
Extraterritoriality
Extension of the power of a country’s laws over its citizens outside that country’s sovereign national boundaries.
Focus group
Small group of invited persons (typically six to twelve) who actively participate in a structured discussion, led by a facilitator, for the purpose of eliciting their input`
Global mindset
Ability to take an international perspective, inclusive of other cultures’ views.
Gross profit margin
Ratio of gross profit to net sales
High-context cultures
Societies or groups characterized by complex, usually long-standing networks of relationships; members share a rich history of common experience, so the way they interact and interpret events is often not apparent to outsiders.
Income statement
Statement that reports revenues, expenses, and profits for a specified period of time, for example, quarterly or annually
Jurisdiction
Right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions
Liabilities
Organization’s debts and other financial obligations
Low-context cultures
Societies in which relationships have less history; individuals know each other less well and don’t share a common database of experience, so communication must be very explicit.
Mean
Average score or value
Median
Middle value in a range of values.
Mind mapping
Data-sorting technique in which group members add related ideas and indicate logical connections, eventually grouping similar ideas.
Mode
Value that occurs most frequently in a set of data.
Motivation
Factors that initiate, direct, and sustain human behavior over time.
Negotiation
Process by which two or more parties work together to reach agreement on a matter.
Net profit margin
Ratio of net income (gross sales minus expenses and taxes) to net sales.
Networking
Process of developing mutually beneficial contacts through the exchange of information.
Nominal group technique (NGT)
Technique in which participants each suggest ideas through a series of rounds and then discuss the items, eliminate redundancies and irrelevancies, and agree on the importance of the remaining items.
Online analytical processing (OLAP)
Processing applications that store data in a multidimensional “cube,” which enables users to analyze data quickly in a variety of different ways
Ratio analysis
Comparing the sizes of two variables to produce an index or percentage; commonly used to analyze financial statements.
Regression analysis
Statistical method used to predict a variable from one or more predictor variables.
Reliability
Extent to which a measurement instrument provides consistent results.
Root-cause analysis
Type of analysis that starts with a result and then works backward to identify fundamental cause.
Rule of law
Concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws.
Scenario/what-if analysis
Statistical method used to test the possible effects of altering the details of a strategy to see if the likely outcome can be improved.
Social intelligence
Ability to create connections or rapport with others
Stakeholder concept
Concept that proposes that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities.
Transparency
Extent to which an organization’s agreements, dealings, information, practices, and transactions are open to disclosure and review by relevant persons
Trend analysis
Statistical method that examines data from different points in time to determine if a variance is an isolated event or if it is part of a longer trend
Unweighted mean
Raw average of data that gives equal weight to all values, with no regard for other factors.
Validity
Extent to which a measurement instrument measures what it is intended to measure.
Value
The benefit created when an organization meets its strategic goals; measure of usefulness, worth, or importance.
Value chain
The process by which an organization creates the product or service it offers to the customer.
Variance analysis
Statistical method for identifying the degree of difference between planned and actual performance or outcomes
Weighted mean
Average of data that adds factors to reflect the importance of different values
