Structure of the HR function Flashcards
Center of excellence (COE)
An organizational structure that leverages staff expertise
in certain areas to improve the entire organization’s
strategic performance.
Cosourcing
Arrangement in which an enterprise and a vendor share
different tasks within a larger complex, often strategic
responsibility.
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
HR audit
Systematic and comprehensive evaluation of an
organization’s HR policies, practices, procedures, and
strategies.
Outsourcing
Process by which an organization contracts with third-party vendors to provide selected services/activities
instead of hiring new employees.
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.
Balanced scorecard
Performance management tool that depicts an
organization’s overall performance, as measured against
goals, lagging indicators, and leading indicators.
Benchmarking
Process by which an organization identifies performance
gaps and sets goals for performance improvement by
comparing its data, performance levels, and/or processes
against those of other organizations
Environmental scanning
Process that involves a systematic survey and
interpretation of relevant data to identify external
opportunities and threats and to assess how these
factors affect the organization currently and how they are
likely to affect the organization in the future.
Key performance indicators (KPIs)
Quantifiable measures of performance used to gauge
progress toward strategic objectives or agreed standards
of performance.
Lagging indicator
Type of metric describing an activity or change in
performance that has already occurred.
Leading indicator
Type of metric describing an activity that can change
future performance and predict success in the
achievement of strategic goals.
Mission statement
Concise outline of an organization’s strategy, specifying
the activities the organization intends to pursue and the
course its management has charted for the future.
Organizational values
Beliefs and principles defined by an organization to direct
and govern its employees’ behavior
PESTLE analysis
Scanning process that searches for environmental forces
in political, economic, social, technological, legal, and
environmental categories.
Strategic fit
State in which an organization’s strategy is consistent
with its external opportunities and circumstances and its
internal structure, resources, and capabilities.
Strategic management
System of actions that leaders take to drive an
organization toward its goals and objectives.
Strategic planning
Process of setting goals and designing a path toward a
competitive position.
Strategy
Plan of action for accomplishing an organization’s overall
and long-range goals.
SWOT analysis
Method for assessment of an organization’s strategic
capabilities through use of the environmental scanning
process, by which internal and external factors affecting
achievement of organizational goals are identified and
considered.
Systems thinking
Process for understanding how seemingly independent
units within a larger entity interact with and influence one
another.
Value drivers
Actions, processes, or results that are needed to deliver
a desired value.
Vision statement
Description of what an organization hopes to attain and
accomplish in the future, which guides it toward that
defined direction.
A graphic designer is leaving a technology consulting firm after five years. Can the designer use copyrighted materials to launch a start-up company?
Yes, the firm and the designer share ownership of the work.
Yes, the work belongs to the graphic designer
Maybe. Mediation is needed to determine ownership
No, the work is the property of the employer
No, the work is the property of the employer
A manager has lost several staff members to a competitor in the last quarter, however, continues to meet team targets. Which type of report can HR share to ease this manager’s dismay over losing staff members?
Human capital value added
This shows the productivity of retained employees, due perhaps to HR processes such as training for employees and supervisors and compensation strategies. This metric will increase since revenue will be divided by a smaller number of employees.
Which function has the highest potential to increase future revenue?
Information Technology
Marketing and Sales
Research and development
Operations
Research and development
HR generalists, who may be located within divisions or other locales, implement policies, adapt them as needed, and interact with employees. Which type of HR structure is this?
Centralized
Dedicated
Functional
Decentralized
Functional
Which part of the organization is responsible for assembling products?
Information technology
Sales
Operations
Product Design
Operations
An organization’s HR department receives pressure from multiple different areas in the organization. Which HR structural alternative would work best for this organization?
Centralized
Global resrouces
Matrix
Center of Excellence
Matrix
Which administrative task should an HR manager delegate to an HR assistant?
Ensuring compliance with laws and regulations
Creating career development plans
Reconciling benefits
Conducting interviews
Reconciling benefits
In a sales and marketing environment, what are the 4Ps of marketing?
Price, Product, Promotion and Place
A global company with a dedicated HR structure has locations on several continents. A new labor law in one of thiese locations impacts the company’s overtime rules. What should HR in that location do first to address the change.
Seek an exemption from the new law from local authorities
Inform corporate HR of the new law
Adjust local labor policy to align with the new law
Await instruction from corporate HR on how to proceed.
Inform corporate HR of the new law
What does an HR audit measure the effectiveness and efficiency of?
Policies, practices, procedures, and strategies to support HR’s goals.
HR’s contribution to the organization’s financial status
Transparency and accountability in the use of the HR budget
Internal customer satisfaction with HR services and quality of delivery.
Policies, practices, procedures and strategies to support HR’s goals.
Which task should HR consider for outsourcing?
Benefits management and administration
Design of management compensation
Attendance at disciplinary meetings
Long-range HR strategic planning
Benefits management and administration.
To reduce its manual workload, an HR department implements a system that allows employees access to information related to earnings, taxes, benefits, and vacation leave balances. The system also allows employees to update information for their tax withholding, direct deposits, and retirement fund allocations. What aspect of HR’s role will be reduced?
Transformational
Strategic
Operational
Administrative
Administrative
Which part of the organization has primary responsibility for generating revenue?
Research and development
Operations
Marketing and Sales
Information Technology
Marketing and Sales
Which activity most effectively conveys HR’s value as a strategic business partner?
Providing information to internal stakeholders which demonstrates HR’s impact on the business operations.
Presenting HR’s training initiatives to the company’s executive team
Ensuring that all employee background checks are conducted as required by law
Conveying how the company’s marketing strategy could be adjusted to further penetrate its targeted market
Providing information to internal stakeholders which demonstrates HR’s impact on the business operations
Which best describes HR’s involvement in the strategic planning process of their organization?
Focusing on accurately representing the needs of the HR department to the manager
Assuming sole responsibility for making decisions on matters related to HR
Acting as a consultant to leadership and other functions on HR issues
Critiquing and assessing the input and contributions of strategic planning participants
Acting as a consultant to leadership and other functions on HR issues
The chief financial officer is primarily responsible for which two functions?
Accounting and Finance
How can HR add the most value in the strategic planning process?
By recruiting other personnel to take part in the process
By identifying the HR implications of the company’s strategy
By critiquing the finished plan for alignment with corporate goals
By serving as the facilitator for the planning sessions
By identifying the HR implications of the company’s strategy
Which metric would most accurately show the effect of the investment in an HR change initiative to increase employee productivity?
Human capital value added
What is a direct result of HR’s evolving strategic role?
Increased knowledge of employment law, compliance issues, and record-keeping
Redesign of incentive systems to reward increased customer satisfaction
More employee engagement programs to smooth generational differences in the workforce
Required competence to develop talent through career development and succession planning.
Required competence to develop talent through career development and succession planning.
Which activity is considered a strategic HR responsibility?
Ensuring that transactional tasks are processed correctly
Establishing common goals of an organization’s core business functions
Identifying enhancements to an HRIS
Recommending outsourcing opportunities to reduce an organization’s overhead costs.
Establishing common goals of an organization’s core business functions
Which is the best rationale for ensuring a new HR team member confirms with the manager that an employee issue has been resolved?
It ensures a request is not officially closed until notification is confirmed
It provides a second check that the request was successfully handled
It reinforces HR’s service and value to its internal business partners
It allows the manager a chance to monitor the team member’s performance.
It reinforces HR’s service and value to its internal business partners
HR management creates a shared services center for career development counseling. Several months later, management notes high turnover in HR offices throughout the organization. Which is the most likely reason for the outcome?
Natural elimination of redundant positions
Strategic workforce management
Poor management of the extended effects of an organizational change
Weak organizational communication
Poor management of the extended effects of an organizational change
In the balanced scorecard approach to strategic management, which action does the customer value most?
Monitoring processes to ensure satisfactory outcomes
Analyzing employee ability to accomplish goals
Designing clear long-range objectives
Providing quality goods and services
Providing quality goods and services
Which is the most desired outcome of an HR audit?
Confirmation that adequate controls have been established
Increase in the organization’s efficiency
Identification of areas of the function where performance could be improved
Recognition of HR’s role as a credible business partner.
Identification of areas of the function where performance could be improved
