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Human Resources Study Notes > Strategy > Flashcards

Strategy Flashcards

1
Q

Definition of Strategy

A

The formation of organizational objectives, scopes and action plans for gaining advantage.
(Defines the organizations intent)

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2
Q

What is Strategy Formulation?

A

The process of conceptualizing the organizations mission, identifying it’s strategy and developing long range organization performance goals.

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3
Q

What is Strategy Implementation?

A

The act of putting long (can span 8 years), mid (can span 5 years) and short (1-2 years) range of plans in place. Ex: how performance goals will be achieved, activities managers and employees undertake, etc

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4
Q

What is the Emergent Strategy?

A

The plan that changes incrementally due to environmental changes.

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5
Q

What is the Intended Strategy?

A

The formulated plan.

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6
Q

What is the Realized Strategy

A

The implemented plan.

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7
Q

What is the Discarded Strategy?

A

Deemed inappropriate due to changing circumstances.

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8
Q

Stakeholders of Strategy

A

owners, shareholders, leaders, managers, employees, candidates, union, etc

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9
Q

What are the main Strategic Types

A

Restructuring Strategies
Growth Strategies
Stability Strategies

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10
Q

Definition of a Corporate Strategy

A

Organizational-level decisions that focus on long term survival

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11
Q

What are the types of Restructuring Strategies?

A
  1. Turnaround strategy: an attempt to increase the viability of an organization. (ex. layoffs, getting rid of unprofitable products, making the organization more efficient).
  2. Divestiture: The sale of a division or part of an organization.
  3. Liquidation: the termination of a business and sale of it’s assets.
  4. Bankruptcy: A formal procedure in which an appointed trustee in bankruptcy takes possession of a businesses assets and disposes of them in an orderly fashion.
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12
Q

What are the types of Growth Strategies?

A
  1. Acquisition: the purchase of one company by another
  2. Merger: 2 organization combine resources and become one
  3. Incremental Growth: can be achieved by expanding client base, increasing products and services, changing the distribution network, etc.
  4. International growth: seeking new customer markets.
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13
Q

What is a Business Strategy?

A

Focuses on one line of business. Concerns itself with how to build a strong competitive position.

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14
Q

What is the Strategic Planning Process?

A
  1. Establish the mission, vision and values.
  2. Develop objectives.
  3. Analyze the external environment.
  4. Identify the competitive advantage.
  5. Determine the competitive position.
  6. Implement the strategy.
  7. Evaluate the performance.
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15
Q

What is a mission statement?

A

An articulation of the purpose of the organization and the value it creates to its customers.

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16
Q

What is a vision statement?

A

Defines an organizations long term goals.

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17
Q

What are values?

A

The basic beliefs that govern individual and group behaviour in an organization.
Conveys a sense of identity for employees

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18
Q

What is a Competitive Advantage?

A

The characteristics of a firm that enable it to earn higher rates of profit than its competitors.

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19
Q

What are 2 types of goals when developing objectives?

A
  1. Soft Goals: Ex: better leaderships or defining corporate social responsibility
  2. Hard Goals: Ex: achieving 10% net assets by the end of the year
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20
Q

What method is used to analyze the environment?

A

SWOT - Strengths, Weaknesses, Opportunities & Threats

  1. External Environment: Threats and Opportunities (Ex: are there employees being laid off from another company that we can hire to meet our growth strategy.)
  2. Internal Environment: Strengths and Weaknesses (Ex: Are we good at learning and development?, Good at securing customers or old ones?)
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21
Q

What are Tangible Assets?

A

Assets that have substance and can be consumed. Include raw materials, finished goods, property and buildings.

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22
Q

What are Intangible Assets?

A

Assets that are not concrete such as reputation and goodwill. Include the perception and reputation of the company. Goodwill is the premium placed on the value of the organization - based on good customer and employee relations for example. Can be the difference between what was paid and what the company was estimated to be worth. For example, paid 3 billion to merge and acquire and the company was work 2.5 billion, the difference would be the Goodwill.

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23
Q

What are Capabilities?

A

The collective skills, abilities and expertise, and core competencies. Represent the human capital assets to take advantage of to secure themselves in the environment.

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24
Q

What is the definition of Value Proposition?

A

A statement of the benefits your products or services provide in the marketplace. Customers want something valuable based on their needs and preferences. This is also true for Employees. Important to note the tangible and intangible benefits the employees receive. Results in increased employee retention. An employee value proposition defines the competitive position of your employment brand.

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25
Q

What are Core Competencies?

A

Resources and capabilities that serve as a firm’s competitive advantage.

26
Q

What are Dynamic Capabilities?

A

The ability to adapt and renew competencies in accordance with changing business environment.

27
Q

What are Porter’s Model: 5 Competitive Strategies

A
  1. Lower-cost leader strategy: Overall low-cost provider of a product/service that appeals to a broad range of customers (Ex. Walmart or Sam’s Club). In HR, a low-cost environment for an organization would have training and benefits at a low cost.
  2. Broad differentiation strategy:** Differentiate the product offerings from rival’s that appeal to a broad range of buyers (Ex. Whole foods). Quality and customer service are 2 ways in which Whole Foods wants to differentiate themselves (means different training, etc)
  3. Best-cost provider strategy: More value for the money by emphasizing both low cost and upscale difference (Ex. Ikea). It may not be a low cost product but give a consumer more bang for their buck.
  4. Focused or market-niche strategy: based on differentiation (Ex. Rolls Royce)
  5. Focused or market-niche strategy: based on lower cost (Ex. Maybelline vs. Chanel)
    • Both of these focus on a niche market.
28
Q

What is Strategic Implementation?

A

The operational planning process consisting of programs, budgets and procedures

29
Q

What is a Budget?

A

The financial resources needed to accomplish the goal.

30
Q

What are Programs?

A

The steps or activities necessary to accomplish a goal.

31
Q

What are Procedures?

A

The steps that are required to get a job done.

32
Q

What are some errors in Strategic Planning?

A
  • Not involving key people - this can be detrimental. Excluding different skill sets or keeping key people out of the loop can cause many issues. Accountability matrix (Racy chart?). Having these key people also helps make sure everything is kept on track and will be accepted by the organization.
  • Failing to use the plan you developed in the strategic planning process as a guide - also planning a guide and not following that plan or deviating from the plan can cause more detrimental issues.
  • Failing to align incentives, other HR programs and policies to the achievement of strategy - Ex: not redesigning the sales compensation plan to reflect a shift in the market will not change the behaviour of the team to get those sales. Shouldn’t be offering new expensive benefits if you’re in the process of being acquired.
33
Q

What is Governance and HR?

A
  • Governance establishes who has power, who makes decisions, who is accountable for carrying out those decisions and how others are heard. Starts with the board of directors.
    • It ensures decisions are made in line with the organization’s policies, guidelines, philosophies, and cultural norms;
    • It guards against conflicts of interest; and
    • It ensures everyone has access to due process
    • Says who has authority to decide on certain policies, practices, etc.
34
Q

What are some Key Challenges withInternational Human Resource Management?

A
  1. Workforce Diversity - must consider integration and accommodation of older workers, cultural differences, gender differences and diversity of different markets from other organizations in other countries.
  2. Employment Legislation - when crossing international borders, there will be different legislations. This can all be diverse even within a radius of a few km.
  3. The Role of the HR Function - very important to help support corporate objectives and seen to be integral. For organization expansion plans to succeed, HR can help with greater employee engagement, a smooth process and budget effectively.
35
Q

What is Strategic International HRM?

A

“The examination, creation and management of HR management issues, functions, policies, and practices that result from the strategic activities of a multinational enterprise and that affect the international concerns and goals of that enterprises.”

  • Ex: if an organization needs to respect over 200 employment laws in over 200 countries, it must respond to the cultural values within each country and look at standardization and customization for the policies, procedures and practices where and when it makes sense.
36
Q

What are the Stages of Growth

A
  1. Domestic Growth Strategy: Companies become international by exporting their goods abroad as a means of seeking new markets. They still focus on local domestic markets and don’t change the look or feel of their product for foreign customers. May hire someone such as an export manager to control foreign sales.➡️ Domestic HR Strategy
  2. Multi-domestic Growth Strategy: Resulting in subsidiaries. Producing within the market where goods are sold. Making products specifically for that market. Commonplace to have a local HR approach and practices. Done because local managers would have more knowledge of their approaches. Local manager may not understand the culture or product (concern)➡️ Adaptive HR Strategy
  3. Multinational Growth Strategy: Standardizing the products and services around the world to gain efficiency. Usually due to increased competition. A price sensitive perspective is popular and cultural differences is less emphasized. The local environment will not be considered in that system (ex training laws, succession management) Keep transaction costs low - HR at HQ will have a knowledge in the HR system problem is that local employees may go unnoticed.➡️ Exportive HR Strategy
  4. Global Growth Strategy: Introduces culturally-sensitive products in chosen countries with the least amount of cost. Resources and materials within regional branches are relocated globally to make all the products at the lowest cost.➡️ Integrative HR Strategy - combine home HR practices with local practices and select as appropriate.
37
Q

What are some International Recruitment Options?

A
  1. Host-country nationals (HCNs): Individuals from the subsidiary country who know the foreign cultural environment well.
  2. Parent-country nationals (PCNs): Individuals from headquarters who are highly familiar with the firm’s products and services, as well as with its corporate culture.
  3. Third-country nationals (TCNs): Individuals from a third country who have extensive international experience and know the corporate culture from previous working experience with corporate branches in the third country.
  4. Expatriate: Any individual who gives up residence in his/her home country to take up residence in a foreign country either temporarily or permanently.
38
Q

What are the Compensation Policy Options?

A
  1. Home Based Policy: Links the base salary to the salary structure of the home country and also retains the home country’s salary structure for other international supplements, such as housing, schooling, etc. Ex: if you are in Canada with a salary of 100,000 then you would still get that salary elsewhere. The company is looking to retain local standard of living. The idea is that they may come back.
  2. Host Based Policy: Links the base salary to the salary structure of the host country, but retains the home country’s salary structure for other international supplements. Ex: If a Torontonian went to France, they would get paid in the same manner as the French are but they may get supplements such as healthcare that would be similar to the home country.
  3. Region Based Policy: Compensates expats based on the “region” where they are assigned”. Ex: People working overseas may receive a premium vs someone working across the border in the US.
39
Q

What are the Major Environmental factors?

A
  1. Economic Climate: the economy definitely affects HRM. Analyze unemployment rates, value of Canadian dollar. Factors that influence their ability to compete (ex. trade barriers, inflation) (Think global but act local - Philosophy)
  2. Globalization: growth of trade and financial capital across borders. The spread of economic ventures from one country to another. Affects jobs, social legislation, wages, etc.
  3. Political and Legislative Factors: refer to the arena in which organizations and interest groups compete for attention and resources and laws & regulations guiding these interactions. How do org try to influence the law when it comes to taxation, health and safety etc.
  4. Technological Factors: impacts how work is done and what work is done. Advanced technology has made a shift from touch labour to knowledge workers. How can a company take new ideas and knowledge and translate them into new products, processes and materials. Encompasses change we see in the environment with technology (cell-phones, computers). Increasing use of e-learning systems, software, performance issue software, HRIS systems.
  5. Demographic Factors: one of the biggest challenges. Study of population statistics (race, culture, age, economic status, labour markets, religion). Most monitored is labour market. Labour market statistics include graduation rates, migration rates, etc. Generational differences are important to see the practices that attract and retain individuals from different ages.
  6. Social/Cultural Factors: Ex: what is the social attitude for flexible work arrangements/work life balance and how does this influence a recruitment managers view of a candidate. Or visible body piercings/tattoos. Increasing environmental awareness, increasing number of people without children, expanding senior market for certain goods and services. Assess the impact this will have on employment practices.
40
Q

What are the Three Types of Resources/Inputs used to produce goods and services

A

Land, Capital and Labour

41
Q

How can we align the HR Strategy?

A
  1. Create and HR Strategy based on the existing business strategy (input from all areas of the organization)
  2. Create the business strategy based on the required HR Strategy (dynamics of the labour force that shape the organizations strategy. Used when number or types of employees available have a huge impact on location or future direction of the organization)
  3. Use and iterative approach to develop the HR and business strategies simultaneously, recognizing a “reciprocal interdependency” between the two. (in industries where human capital have high value)
42
Q

What are the Benefits of Strategy Formulation

A
  1. Clarity of purpose
  2. Coordination across the various parts of the organization
  3. Efficiency
  4. Incentives, ensuring the right things are being accomplished
  5. Change, helping to identify when change is needed
  6. Career Development
43
Q

What is wrongful dismissal?

A

Terminating an employee without just cause or without giving the employee reasonable notice or compensation in lieu of notice.

44
Q

What is Just cause?

A

Legal grounds for termination such as employee misconduct or incompetence

45
Q

What is constructive dismissal?

A

a major change in the terms of the employment contract that results in an employee resigning. Ex: demotion, forced transfer

46
Q

What is the Wallace Effect?

A

Decision of the Supreme Court. Resulted in the awarding of extended periods of notice in a wrongful dismissal cases where the employer acted in a callous manner.

47
Q

What is Job Specifications?

A

Written statement that explains what a job demands of job holders and the human skills and factors required

48
Q

What is a competency?

A

a knowledge, skill, ability or characteristic associated with successful job performance.

49
Q

What is Job Design?

A

identification of job duties, characteristics, competencies, and sequences taking into consideration technology, workforce, organization character and environment

50
Q

What is a Relational Database?

A

A relational database is a type of database that stores and provides access to data points that are related to one another

51
Q

What is a Hierarchical Database?

A

A hierarchical database is a data model in which data is stored in the form of records and organized into a tree-like structure

52
Q

What is a Networked Database?

A

Network database is based on a traditional hierarchical database, except it allows each object to have multiple parents instead of a single parent. This allows you to model more complex relationships. Network databases can be represented as a graph instead of a tree structure.

53
Q

What is the line function?

A

A line function is one that directly advances an organization in its core work. This always includes production and sales, and sometimes marketing.

54
Q

What is the staff function?

A

Staff function involves assisting the line function with specialist advisory and expertise such as research, training, etc., to meet the business objectives

55
Q

What is the support function?

A

These functions provide a level of service that is essential for the excellence of operational teams and the company’s overall efficiency, through human resources, communication, legal, IT, management control, accounting or general services. Some examples of Support function jobs:

56
Q

What is the overhead function?

A

This measure calculates overhead and other cost of the HR function per function full-time equivalent employee (FTE). Overhead cost refers to expenses that an organization cannot identify as direct costs of performing a process.

57
Q

What is a quality circle?

A

Quality circle is a small group of employees in the same work area or doing similar type of work who voluntarily meet regularly for about an hour every week to. identify, analyze & resolve work related problems, leading to improvement in their total performance & enrichment of their work life

  • Front-line employees working autonomously to improve quality
58
Q

What is selection bias?

A

selection bias occurs when recruiters and hiring managers make decisions based on irrelevant factors, leading to the favouring of certain candidates over others, often unintentionally

59
Q

What is the 9-box approach to assessing employees?

A

The nine-box consists of three performance categories: low, moderate, and high.

  • It measures performance and potential.
60
Q

What is Job Analysis?

A

The process of collecting information about jobs.
- doesn’t refer to a single methodology but rather a range of techniques
- is a formal, structures process carried out under a set of guidelines.
- breaks down a job into constituent parts.

61
Q

What is a work-oriented job analysis?

A

emphasize work outcomes and descriptions of the various tasks performed to accomplish those outcomes.

62
Q

What is a worker-oriented job analysis?

A

emphasize general aspects of jobs, describing perceptual, interpersonal, sensory, cognitive and physical activities.

Human Resources Study Notes (9 decks)

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