Understanding the Environment Flashcards
People Management
process of acquiring, training, appraising and compensating employees
Talent management
end-to-end process of planning, recruiting & onboarding, leadership development, succession, performance management, career development, training, employee collaboration, knowledge management, & compensation
Global Talent Management
assess (talent, workforce planning), acquire (talent sourcing, labor procurement, selection, onboarding), align (reporting, goal management), develop (career planning, performance management, leadership and succession)
From talent to people management
integrated processes/systems people management (focus on culture, engagement, environment, leadership, empowerment)
Strategic people management
formulating and executing HR policies/practices that produce employee competencies and behaviors the company needs to achieve its strategic aims
actions of strategic people management
Set firms strategic aims –>pinpoint employee skills/behaviors needed to achieve goals –>decide which HR practices will let us produce these behaviors/skills
Globalization
a process in which companies in countries around the world are increasingly linked by their activities and the opportunities they provide each other.
Human Resource activities
the formal hr policies developed by a company as well as the actual ways these policies are implemented in the daily practices of supervisors and managers.
Human Resource Certification Institute (HRCI)
the best-known certification provider for HR professionals.
Human Resource code of ethics
a code that states that hr professionals must regard the obligation to implement public objectives and protect the public interest as more important than an employer’s preferences. • to exhibit professional/ethical behavior in relationships with others, assist in developing/enforcing code of ethics, provide ethic training for employees
Human Resource Management (HRM) system
a system developed by an organization to understand, create, coordinate, align, and integrate all of their policies and practices.
Human resources
all of the people who currently contribute to doing the work of an organization, as well as those people who potentially could contribute in the future and those who have contributed in the recent past.
Intangible human assets
an organization’s assets, comparatively social in nature, that include such organizational characteristics as an employer-of-choice reputation, the depth of employee talent and loyalty, and the ability to innovate and change
Multinational corporations (MNC’s)
firms with operations in multiple countries.
Social media
a set of technologies and communication channels targeted at forming and enabling a potentially massive community of participants to productively collaborate.
Society of Human Resource Management (SHRM)
an association for HR professionals in the united states that has local chapters in most cities as well as many student chapters.
stakeholders
individuals or groups with interests, rights, or ownership in an organization and its activities.
Sustainable competitive advantage
a company’s advantage in the market that would be difficult for competitors to understand and copy.
Tangible assets
an organization’s assets that are relatively easy to measure such as inventory, equipment, real estate, and financial assets
World Federation of Personnel Management Associations (WFPMA)
a federation that links country- and region-specific professional associations around the world
External Environment
local, national and multinational conditions – political landscape, labor markets, country cultures, legal institutions, unions, economic globalization
Organizational environment
technology conditions within organization, company culture, strategy
Role of HR Triad
• Line managers
o Stay informed, support new HRM tech, understand new structures, develop new skills
• HR Professionals
o Stay informed, educate organization, keep others informed about implications for skills development, career management
• Employees
o Stay informed, take responsibility for self dev, help employees, be prepared for disruptions
economic globalization
competing on cost vs competing on knowledge= diverse product & service offerings, world wide operations, regional trade zones
Change in labor markets
slow growth, immigrants, multi-generational workforce, competition for employees, skill shortage
• Global labor market factors: where the skills are, labor costs, health issues
Country cultures
how companies are managed, work is designed, employees expect to be treated, managers style –>need for HR practices to be congruent with country culture to enable global success
• Assertiveness, future orientation, gender differentiation, uncertainty avoidance, power distance, performance
Technology
process of making & using tools/equipment plus knowledge used in the process
HR Information Management System (HRIM)
when computer technologies are used to gather, analyze and distribute information about job applications/employees
• Expert systems capture & store data for employee’s development plans, can be used to develop long term planning, communicates company’s values/strategies, facilitates worldwide coordination
Company culture
shared assumptions, values and norms that shape the socialization, activities, language, symbols and ceremonies of people in the organization
• Leadership’s role in shaping company culture: defining mission, upholding values, creating its vision
Company subculture
exist when assumptions, values and norms are shared by some but not all org. members
Business strategy
set of integrated and coordinated commitments and actions intended to achieve stated business goals
competitive strategies
particular business unit’s plan for competing against direct rivals who offer same product- customer service, innovation, quality, cost
Strategy map
shows cause and effect relationships that ultimately determine firm performance
Competitive strategy
describes how a particular business competes against direct rivals who offer same product
Mergers/acquisitions
provide firms efficiency, profitability, flexibility, adaptability
3 stages of mergers/acquistions
o Precombination
Identify reasons for M&A, search for partners, develop HR practices that support rapid learning and knowledge transfer
o Combination
Implement transition teams, create new structure for leadership, retain key employees, manage change process, facilitate establishment of new culture
o Vertical integration- solidification and assessment
Assess new culture & problems, participate in stakeholder satisfaction
implications of mergers/acquisition
- Societal level: globalization opens new markets- need to be socially sensitive
- Strategic level: gaining global competitive advantage depends on effective HR practices
- Workforce level: heightened need for diverse teams, managers who can motivate and innovate, global mindsets/competencies needed
Asia-Pacific Economic Cooperation (APEC)
- a business and trade forum that has 21 member countries bordering on the Pacific Ocean, including the United States, Japan, India, and China.
Association of Southeast Asian Nations (ASEAN)
a trade association that strives to “accelerate the economic growth, social progress, and cultural development in the regions through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations.” Business strategy - a set of integrated and coordinated commitments and actions intended to achieve stated business goals.
Central American Free Trade Agreement (CAFTA)
an agreement that establishes free trade among the United States, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica.
economic cycle
the fluctuations in economic activity that occur over long periods of time in developed market economies
Electronic human resource management (e-HRM)
the use of IT for conducting HRM activities and for social networking among employees
European Union (EU)
a complex array of formal institutions designed to create a united Europe.
External environment
the local, national, and multinational conditions that confront an organization.
Human resource information system (HRIS)
an organization’s use of computer technologies to gather, analyze, and distribute information about job applicants and employees.
International Labor Organization (ILO)
the international organization responsible for drawing up and overseeing international labor standards, bringing together representatives of governments, employers, and workers to jointly shape policies and programs.
Mission statement
a company’s clear view of what it is trying to accomplish.
Multicultural organization
an organization having a workforce that represents the full mix of cultures found in the population at large, along with a commitment to utilize fully these human resources.
North American Free Trade Agreement (NAFTA)
an agreement designed to allow for free trade among Canada, the United States, and Mexico. Organizational environment - a set of conditions within an organization.
Social Accountability International (SAI)
an organization that promotes socially responsible approaches to conducting business and administers a certification process called Social Accountability 8000 (SA 8000).
Strategy map
a means of documenting the cause-and-effect relationships that ultimately determine firm performance.
values
the strong enduring beliefs and tenets that a company holds dear and that help to define and differentiate it from other companies
Virtual workforce
an organization’s members who perform their jobs anywhere and anytime, often on an as-needed basis
Vision
top management’s view of the kind of company that it is trying to create, or a best-case scenario of where the company will be in the future
World Trade Organization (WTO)
the most inclusive international trade organization, and the only global body able to enforce decisions through its own court.
HRM
process of managing human talent to achieve an organization’s objectives
• Why study HRM? Great business plans/products can easily be copied, great personnel cannot
Words to describe how important people are to organizations: human resources, human capital, intellectual assets, talent management
Human capital
knowledge, skills and capabilities of individuals that have economic value to an organization – intangible and cannot be managed the way organizations manage other things- capital is based on company-
• specific skills, gained through long term experience, can be expanded through development
Stakeholders
individuals/group that have interests, rights or ownership in an organization
Primary stakeholders
those whose concerns organization must address in order to ensure its own survival
o society- legal compliance, legitimacy and community support, public opinion and expectations (community relations), social responsiveness (type of employees company chooses to hire), compensation practices
o owners and investors
o organization members – employee pay and benefits, quality of work life, employability
o other organizations – suppliers, unions, alliance partners
o customers -engaged employees can have direct impact on customer satisfaction, understanding customer’s perspective
Tangible assets
Investors focus on measuring tangible assets in order to determine a firm’s value. -Inventory, equipment, real estate, financial assets
New economy
Investors recognize that intangible assets can be just as valuable as tangible assets. -Reputation as an employer-of-choice, depth of employee talent and loyalty, and the firm’s ability to innovate and change.
Gaining and sustaining a competitive advantage
core employees who are added value, employees who are rare, culture that can’t be copied
Organizational characteristics that shape HRM practices
- top management’s leadership approach
- company culture
- business strategy
- technology
External environment
- globalization of business
- labor market conditions and trends
- economic/political trends
- laws/regulations
- cultural differences
- unions
HRM activities
firm’s formal HRM policies as well as the actual ways these policies are implemented in the daily practices of supervisors and managers
Formal policies
statements of expectations/aspirations, modified and influenced by daily practices
Key roles for HR department and leader
business partner, innovator, consultant, employee champion, change master
Key competencies for HR professionals
strategic management, workforce planning/employment, employee labor relations, risk management, total reward, hr development
HR challenges
teams, multicultural workforce, globalization, ethics, metrics
Managing globalization: exporting, overseas manufacturing, transnational firms- challenge: developing an approach to managing HR that works at home as well as abroad
Managing with metrics
measure contribution of HR activities to success of organization- employee satisfaction, employee performance, accident/injury rates
