SPHR All Topics Flashcards
What is the ideal picture of the company in the future?
Vision
The company’s reason to exist, values, direction, and business statement.
Mission statement - how to accomplish vision
What are the steps in formulating strategy?
Identify mission, complete environmental scan (internal & external), implement plan (goals, budget, and actions) and evaluate results.
What do Porter’s 5 Forces analyze?
An industry’s Suppliers, Buyers, Rival firms (type & level of competition), Substitutes/Alternative products, New entrants/new competitiors
What does a PEST analysis examine?
Factors in the general environment: Political, Economic, Social, Technological
A snapshot of financial results, such as revenue, cost to produce, overhead, profit & loss
Balance Sheet (or P & L)
Where money came from and how it was used
Statement of cash flows
GAAP & FASB
Generally Accepted Accounting Principles: Standards for recording financial transactions developed by Financial Accounting Standards Board
Revenue - Cost of goods sold
Gross profit
Basing current budget on last year’s budget, such as increasing prior year’s by a flat %
Historic budgeting. Also incremental budgeting, which factors in historic data plus new needs
Starting a budget from scratch
Zero based budgeting. Opportunity to evaluate programs for added value
Practice that evaluates effectiveness of HR department, compliance, risk management, and value creation
HR audit
Cost of acquiring human capital: recruiting, selecting, training, developing
Outlay cost
Individual’s expected contribution to firm’s net income. Net present value on individual’s future services
Human resource value
Revenue factor
Revenue factor = Revenue/Total Number FT ees
HR expense factor
HR expense factor = HR expense/Total ees
HR cost as a % of revenue
HR cost as a % of revenue = HR cost/revenue
HR cost as a % of total operating costs
HR cost as a % of total operating costs = HR cost/operating expense
[Revenue - (Operating expense - (Compensation cost + Benefit cost) )] / (Compensation + Benefits)
Human Capital ROI
[Revenue - (Operating expense - (Compensation cost + Benefit cost) )] / Total number of FT ees
Human Capital Value Added
Method of tying outcomes of each department into one measurement system. Recognizes multiple stakeholders.
Balanced Scorecard
What 4 areas are measured in a balanced scorecard?
Financial results, Customer satisfaction, Internal business processes, Employees (hiring & training)
What is the difference between efficiency and effectiveness?
Efficiency is how well a company creates a product from materials. Effectiveness is the entire cycle, from obtaining materials to selling the product.
What are the characteristics of product departmentalization?
Well defined, separate products. Duplication of activities exists. Decentralized or centralized.
What are the characteristics of functional organization?
Single product line. Specialization. Eliminates duplication of effort. Centralized.
What are divisional structure characteristics?
Responsibility is by market or industry (not geography). Decentralized
Which function makes decisions about operations?
Line function
Which function is an advisory role to operations?
Staff function
What function ensures strategies, tactics, and plans are followed?
Controlling function
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.