SPHR All Topics Flashcards
1
Q
What is the ideal picture of the company in the future?
A
Vision
2
Q
The company’s reason to exist, values, direction, and business statement.
A
Mission statement - how to accomplish vision
3
Q
What are the steps in formulating strategy?
A
Identify mission, complete environmental scan (internal & external), implement plan (goals, budget, and actions) and evaluate results.
4
Q
What do Porter’s 5 Forces analyze?
A
An industry’s Suppliers, Buyers, Rival firms (type & level of competition), Substitutes/Alternative products, New entrants/new competitiors
5
Q
What does a PEST analysis examine?
A
Factors in the general environment: Political, Economic, Social, Technological
6
Q
A snapshot of financial results, such as revenue, cost to produce, overhead, profit & loss
A
Balance Sheet (or P & L)
7
Q
Where money came from and how it was used
A
Statement of cash flows
8
Q
GAAP & FASB
A
Generally Accepted Accounting Principles: Standards for recording financial transactions developed by Financial Accounting Standards Board
9
Q
Revenue - Cost of goods sold
A
Gross profit
10
Q
Basing current budget on last year’s budget, such as increasing prior year’s by a flat %
A
Historic budgeting. Also incremental budgeting, which factors in historic data plus new needs
11
Q
Starting a budget from scratch
A
Zero based budgeting. Opportunity to evaluate programs for added value
12
Q
Practice that evaluates effectiveness of HR department, compliance, risk management, and value creation
A
HR audit
13
Q
Cost of acquiring human capital: recruiting, selecting, training, developing
A
Outlay cost
14
Q
Individual’s expected contribution to firm’s net income. Net present value on individual’s future services
A
Human resource value
15
Q
Revenue factor
A
Revenue factor = Revenue/Total Number FT ees
16
Q
HR expense factor
A
HR expense factor = HR expense/Total ees
17
Q
HR cost as a % of revenue
A
HR cost as a % of revenue = HR cost/revenue
18
Q
HR cost as a % of total operating costs
A
HR cost as a % of total operating costs = HR cost/operating expense
19
Q
[Revenue - (Operating expense - (Compensation cost + Benefit cost) )] / (Compensation + Benefits)
A
Human Capital ROI
20
Q
[Revenue - (Operating expense - (Compensation cost + Benefit cost) )] / Total number of FT ees
A
Human Capital Value Added
21
Q
Method of tying outcomes of each department into one measurement system. Recognizes multiple stakeholders.
A
Balanced Scorecard
22
Q
What 4 areas are measured in a balanced scorecard?
A
Financial results, Customer satisfaction, Internal business processes, Employees (hiring & training)
23
Q
What is the difference between efficiency and effectiveness?
A
Efficiency is how well a company creates a product from materials. Effectiveness is the entire cycle, from obtaining materials to selling the product.
24
Q
What are the characteristics of product departmentalization?
A
Well defined, separate products. Duplication of activities exists. Decentralized or centralized.
25
What are the characteristics of functional organization?
Single product line. Specialization. Eliminates duplication of effort. Centralized.
26
What are divisional structure characteristics?
Responsibility is by market or industry (not geography). Decentralized
27
Which function makes decisions about operations?
Line function
28
Which function is an advisory role to operations?
Staff function
29
What function ensures strategies, tactics, and plans are followed?
Controlling function
30
What are traits of a matrix organization?
Each department reports to 2 managers: functional and product. Can create new products quickly. Requires high level of trust. Can increase stress due to role ambiguity and decreased unity of command.
31
What are the 4 basic business structures?
Sole proprietor, Partnership, Corporation, Limited Liability Company.
32
What are the characteristics of a Corporation?
Ownership through stock, liability limited to company's assets, central management, may outlast its founder.
33
What does KSA stand for?
Knowledge, Skills, Abilities
34
What is a high context culture?
One where people take their cues from nonverbals and relationships
35
What is a low context culture?
One where people take cues from what is said
36
What is resources based theory?
Resource based theory states that competitive advantage results from ownership and control of rare, non-tradable, non-substitutable resources that are valued by the market and difficult to imitate.
37
The Blake & Mouton Managerial Grid is based on what factors?
The level of Concern for People and the Concern for Results.
38
What is the least effective management style according to Blake & Mouton?
"Impoverished Management – Low Results/Low People
This leader is mostly ineffective. He/she has neither a high regard for creating systems for getting the job done, nor for creating a work environment that is satisfying and motivating. The result is disorganization, dissatisfaction and disharmony." (from MindTools.com)
39
What is the most effective management style according to Blake & Mouton?
"Team Leadership – High Production/High People
These leaders stress production needs and the needs of the people equally highly. The premise here is that employees understand the organization's purpose and are involved in determining production needs. When employees are committed to, and have a stake in the organization’s success, their needs and production needs coincide. This creates a team environment based on trust and respect, which leads to high satisfaction and motivation and, as a result, high results" (from MindTools.com)
40
What is the significance of Situational or Contingency leadership theory?
Situational leadership takes into consideration variables such as characteristics of the group and nature of the task to be performed
41
What is the application of Hersey & Blanchard's leadership theory?
It shows how to consider "maturity" of the workers (their ability and willingness) to determine leader behaviors. Low maturity means leader tells workers what to do, High maturity means leader can delegate.
42
How did Fiedler's Contingency Theory explains leadership?
"Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale" (from MindTools). How you rank that coworker on the scale describes your style. Also considers structured vs unstructured tasks, power position of the leader
43
What is the Path Goal Model of leadership?
Path Goal Theory : Choose the most appropriate leadership style based on characteristics of the follower & environment.
44
What are the styles of Path Goal leadership?
Supportive- Considering the needs of the follower, showing concern for their welfare and creating a friendly working environment. Best when the work is stressful, boring or hazardous.
Directive leadership-Telling followers what needs to be done and giving appropriate guidance along the way.
This may be used when the task is unstructured and complex and the follower is inexperienced.
Participative leadership-Consulting with followers and taking their ideas into account when making decisions and taking particular actions. This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it.
Achievement-oriented leadership-Setting challenging goals, both in work and in self-improvement (and often together). This approach is best when the task is complex
45
What is Vroom's Expectancy Theory?
Expectancy Theory states that individuals choose actions that they think will give them a reward or reduce the likelihood of pain. Under this theory the ultimate goal is not important to the individual; what matters to the individual is the impact that achieving the goal will have on them.
46
What is the point to Vroom & Yetton's Normative Decision Making?
Making decisions as a leader depends on: how well workers accept goals of the organization, whether they will accept the decision without participating, whether the decision will be controversial. Leader is autocratic, participative or allows group to decide.
47
Which is the X axis, and what does it represent?
X axis is the independent variable (horizontal). The Independent variable (age) causes a change in the Dependent (flexibility)
48
Which is the Y axis, and what does it represent?
Y is the vertical axis, the dependent variable. The Dependent Variable is changed by the Independent.
49
What is deontology?
Position that judges the morality of an action based on the action's adherence to a rule or rules. It is sometimes described as "duty" or "obligation" or "rule"-based ethics
50
What is teleology?
Ethics based on consequences.Teleological analysis of business ethics leads to consideration of the full range of stakeholders in any business decision: management, staff, customers, shareholders, country, humanity and environment.
51
Who is affected by Sarbanes Oxley? Why?
Publicly traded companies. SOX requires that companies demonstrate corporate responsibility for accurate numbers & practices. Enforced by SEC
52
What is Section 406 of SOX?
Requires a code of ethics for executive officers designed to deter fraud and promote financial integrity. Ethics officer may be in HR
53
What is Section 806 of SOX? Who enforces it?
Section 806 is whistle blower protection, enforced by OSHA. To have protection, a retaliation complaint must be filed within 90 days
54
What is required by SOX Section 404?
Management is responsible for: 1) an "adequate" internal control structure, and 2) an assessment by management of the effectiveness of the control structure. HR implication: Accuracy of Compensation, Pension, Payroll processes, etc
55
What is covered by SOX Section 306?
Insider trading is prohibited. It requires a 30 day notice of blackout periods (origin: Enron employees were unable to sell plummeting stock during a change in benefit providers)
56
What are the components of building a business case?
1. Problem statement 2. Objectives 3. Potential solutions 4. Timeline showing impact on cash flows, cost reductions 5. Metrics, quantify costs & benefits
57
What are the 5 steps of project management?
1. Define problem. 2. Plan project. 3. Implement plan. 4. Monitor, control, adapt. 5. Evaluate outcomes.
58
What are the roles of a project manager?
Interpersonal (leader, liason), Informational, Decisional (conflict resolution, resource allocation)
59
What is HR's role in strategic planning?
Serve the organization and its functions, not just HR.
Position HR as expert in workforce planning. Create and maintain a motivated, participative workforce. Understand every function’s role and processes.
60
How does an HR professional become strategic?
Build partnerships across the organization and relationships inside and outside the organization.
Learn about your industry. Support ideas with facts and data. Help the organization measure its strategic success.
61
Basing a budget on a general % increase
Formula budgeting
62
What are the 5 Ps of marketing?
Product, placement, pricing, promotion
63
What is covered in the Dodd Frank Act?
The Dodd-Frank Wall Street Reform and Consumer Protection Act enacted on July 21, 2010, includes three sections that add whistle-blower protections, and it also amended the Sarbanes-Oxley Act (SOX) and False Claims Act to expand their whistle-blower protections.
64
How does Dodd Frank interact with FCRA?
An amendment offers greater consumer protection and requires notice to an applicant if adverse action is taken as a result of credit scores
65
What does the Walsh Healey cover?
The Walsh-Healey Public Contracts Act (PCA) applies to contractors with contracts in excess of $10,000 -Covered contractors must pay employees on the contracts the federal minimum wage ($7.25) and overtime
66
What does the Norris LaGuardia Act do?
The Norris-LaGuardia Act gave the right organize, outlawed yellow-dog contracts (pledges by workers not to join a labor union) and further restricted the use of court injunctions in labor disputes against strikes, picketing, and boycotts
67
What is the significance of the Lilly Ledbetter Fair Pay Act?
Lilly Ledbetter Fair Pay Act amends the Civil Rights Act of 1964 clarify at which points in time discriminatory actions (unfair compensation) qualify as an “unlawful employment practice.”
68
What is the time limitation for a claim under Lilly Ledbetter?
individuals may receive back pay as compensation for discrimination that occurred up to two years preceding the filing of a charge. -
69
Who is covered by Davis Bacon and for what?
All contractors and subcontractors performing on federal contracts in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits. (Construction)
70
What protection is provided by the NLRA (aka Wagner Act)?
Prohibits certain types of employer and union misconduct (ULP)and have the right to attempt to form a union where none currently exists. - Established NLRB
71
What is covered by the Taft Hartley Act (LMRA)?
The activities and power of unions. Outlawed closed shops (contract requiring an employer to hire only union members) and hot cargo. Requires unions to represent all in bargaining unit. Balances power of unions & mgmt
72
What is the Landrum Griffin Act?
The Labor-Management Reporting and Disclosure Act (LMRDA) — aka Landrum-Griffin Act — provides bill of rights for union, allows closed shop for construction only, prohibits discrimination against non-union emps.
73
Why was Washington v. Davis significant?
The court ruled that although a test had a disproportionate effect on a minority group, it did not prove discrimination due to the skills measured by the test.
74
How did the Sherman Anti-trust Act affect unions?
It was directed at monopolies and provided for injunctions issued against union activities
75
What did the Clayton Act do?
It legalized peaceful strikes, pickets and boycotts
76
Why is the Railway Labor Act relevant?
It gave railway workers the rights to organize unions. it still applies to railway workers and airline employees
