Unit 1: Business Management/Leadership & Strategy

Question 1

Balance Sheet

Answer 1

A statement of financial position that reports a company’s assets, liabilities, and equity as of a specific point in time, such as the end of the company’s fiscal year.

Question 2

Baby Boom

Answer 2

The period of time following World War II when there was a significant increase in the birthrate in the United States.

Question 3

Advisory Role

Answer 3

Exists when the relationship between the human resource department and the line managers is one of providing advice and counsel and when the authority for deciding what to do is shared.

Question 4

Balanced Scorecard

Answer 4

A strategic management performance tool that assesses how well an organization is meeting its goals by evaluating both financial and non-financial key performance indicators.

Question 5

Birth Dearth

Answer 5

The decline in the birthrate that occurred during the Great Depression.

Question 6

Birthrate

Answer 6

The number of live births per 1,000 population OR the number of live births per 1,000 adult females.

Question 7

BLS

Answer 7

Bureau of Labor Statistics. An agency in the Department of Labor that collects and publishes information about the labor market.

Question 8

Born Global

Answer 8

Organizations that are formed as global firms from the outset.

Question 9

Budget

Answer 9

A plan that describes expected income and expenses over a period of time.

Question 10

Cash Flow Statement

Answer 10

A report of the flow of cash in and out of a company, showing changes in the balance sheet and how those changes affect the availability of cash.

Question 11

Centralized Authority

Answer 11

A characteristic of organizations in which the authority to make organizational decisions is retained by top managers within the central office.

Question 12

Change Agent Role

Answer 12

The role of HR managers when they supervise or guide an organizational development intervention.

Question 13

Civilian Labor Force

Answer 13

All employed or unemployed persons 16 years of age and older who are not military personnel nor inmates of penal or mental institutions, or homes for the aged, infirm, or needy.

Question 14

Code of Ethics

Answer 14

A set of rules that identifies the values that members of the organization, and especially its leaders, consider to be important.

Question 15

Competitive Advantage

Answer 15

A position of relative advantage over one’s competition.

Question 16

Competitor Analysis

Answer 16

An analysis of each organization with which a company directly competes.

Question 17

Conflict of Interest

Answer 17

A situation where a person who has a responsibility to act in the best interests of a company may receive direct personal benefit from his or her actions at the expense of the company.

Question 18

Control Role

Answer 18

Exists when the human resource department has the authority to make decisions regarding personnel policies and procedures that line managers are required to follow.

Question 19

Corporate Governance

Answer 19

The systems by which an organization is administered, directed, and controlled.

Question 20

Cooptation

Answer 20

A strategy of bringing outside people into the organization and making them feel obligated to contribute because of their organizational involvement.

Question 21

Core Competency

Answer 21

Unique skills or resources that give an organization a competitive edge.

Question 22

CPS

Answer 22

Current Population Survey. A survey of about 60,000 households that is conducted by the Bureau of Labor Statistics. Personal interviews are conducted monthly to determine participation in the workforce, unemployment, and reasons for not working or for only working part-time.

Question 23

Cultural Artifacts

Answer 23

The visible symbols and objects that are unique to an organization and that suggests the kinds of shared beliefs and expectations of members.

Question 24

Cultural Values

Answer 24

The social values shared among the members of an organization that tend to regulate their individual behaviors and induce collective conformity.

Question 25

Decentralized Authority

Answer 25

A characteristic of organizations in which authority to make organizational decisions is delegated to lower-level managers and supervisors.

Question 26

Division of Labor

Answer 26

The process of dividing work into specialized jobs that are performed by separate individuals.

Question 27

Effectiveness Versus Efficiency

Answer 27

Efficiency refers to how well an organization creates products from the materials and energy used to produce them - it is a ratio of inputs to outputs. Effectiveness refers to the entire cycle of obtaining inputs, transforming them into useful products, selling them, and obtaining more inputs.

Question 28

Emotional Intelligence

Answer 28

An individual's ability to monitor his or her own emotions and the emotions of others and to use emotional information appropriately.

Question 29

Employment Exchange

Answer 29

An agreement in which an individual agrees to provide labor in exchange for rewards offered by an organization.

Question 30

Empowerment

Answer 30

Providing the conditions that stimulate followers to act in a committed, concerned, and involved way in doing their work.

Question 31

Enterprise Resource Planning

Answer 31

A computer-based system that integrates the various processes throughout a business, such as inventory control, order management, production, customer service, accounting, and human resources.

Question 32

Environmental Scanning

Answer 32

Examining the demographic and social forces influencing the long-term composition of the labor force and the future availability of employees.

Question 33

Environmental Uncertainty

Answer 33

The degree of predictability in an organization's environment as determined by the complexity of the environment and how rapidly it changes.

Question 34

Expatriate

Answer 34

An employee who is assigned to work in a foreign country.

Question 35

Fertility Rate

Answer 35

The average number of children born to a woman during her lifetime. The fertility rate of 2.1 represents zero population growth.

Question 36

Field Experiment

Answer 36

A research study that occurs in an organization's natural setting where an independent variable is manipulated to determine its effects on dependent variables.

Question 37

Field Survey

Answer 37

A research study in which variables in an actual organization are measured and correlated; sometimes called a correlational study.

Question 38

Functional Authority

Answer 38

The authority exercised by the human resource department when it is authorized to establish policies and procedures and monitor compliance with them.

Question 39

Functional Departmentalization

Answer 39

An organizational structure where jobs are assigned to units or departments by function.

Question 40

Gap Analysis

Answer 40

A method which consists of comparing the current situation to the desired situation in order to identify the changes required to reach the desired state.

Question 41

Global Firm

Answer 41

An organization with strategic corporate units in multiple countries that interact with the headquarters and with each other.

Question 42

Global Outsourcing

Answer 42

When an organization contracts with a foreign company to perform one or more of its processes.

Question 43

HR Competencies

Answer 43

Skills and abilities that all human resource managers ought to possess, including strategic contribution, personal credibility, HR delivery, business knowledge, and mastery of HR technology.

Question 44

HR Dashboard

Answer 44

The process of collecting HR metrics and presenting them to managers in a useful format. Sometimes referred to as an HR scorecard.

Question 45

HR Metrics

Answer 45

Specific indicators that are used to measure progress or achievement.

Question 46

HR Scorecard

Answer 46

The process of collecting HR metrics and presenting them to managers in a useful format. Sometimes referred to as an HR dashboard.

Question 47

HRIS

Answer 47

A collection of information about the people working for an organization, usually stored in a computer-based system.

Question 48

HRMS

Answer 48

A computer-based system that performs a large number of human resource activities, such as payroll, performance management, and attendance tracking.

Question 49

Human Capital ROI

Answer 49

[Revenue - (Operating Expense - (Compensation Cost + Benefit Cost))} / (Compensation Cost + Benefit Cost)

Question 50

Human Capital Value Added

Answer 50

[Revenue - (Operating Expense - (Compensation Cost + Benefit Cost))] / Total Number of FTE

Question 51

Human Resource Accounting

Answer 51

Identifying and measuring the value of a firm's human resources using standard accounting practices and communicating this information to interested parties, especially investors and managers.

Question 52

Human Resource Audit

Answer 52

An evaluation by members of a firm, especially supervisors and managers, regarding how well the human resource department is performing its responsibilities and objectives.

Question 53

Human Resource Business Partner

Answer 53

An employee who consults with top-level managers and collaborates with the HR department to ensure that HR policies and procedures are in line with and support the strategy and objectives of the organization.

Question 54

Human Resource Generalist

Answer 54

A human resource manager who is required to understand all of the major personnel functions and how they interact with other business functions.

Question 55

Human Resource Specialists

Answer 55

Members of a department who specialize in a particular human resource function, such as staffing, compensation, or employee relations.

Question 56

Human Resource Value

Answer 56

The expected financial contribution to a firm's net income for individuals at various levels in the firm. A measure proposed in human resource accounting to assess the value of a firm's human resources.

Question 57

Income Statement

Answer 57

A report of a company's income, expenses, and profits over a certain period of time.

Question 58

Inducements-Contributions Balance

Answer 58

The balance achieved in an employment exchange where the rewards offered by an organization are roughly equivalent to the contributions that an employee is required to make.

Question 59

Laboratory Experiment

Answer 59

A research study that is conducted in a controlled environment where outside influences can be eliminated or controlled.

Question 60

Lagging Indicator

Answer 60

A measure of the results of a process or a change, such as sales, profits, and customer service levels.

Question 61

Leading Indicator

Answer 61

A measure that precedes, anticipates, or predicts future performance.

Question 62

Line Authority

Answer 62

The authority to make decisions and to direct the performance of subordinates in production, sales, or finance-related activities.

Question 63

Local National

Answer 63

Workers who are hired by a multinational company to work in their own country. Also called host country nationals.

Question 64

Matrix Structure

Answer 64

A combination of two different forms of departmentalization, usually functional and product departmentalization. Matrix structures create dual accountabilities in which workers report to two supervisors, usually a functional leader and a product manager.

Question 65

MNE

Answer 65

Multinational enterprise. A global firm that has corporate units located in foreign countries.

Question 66

Off-Shoring

Answer 66

When an organization relocates one or more of its processes to another country, usually to save on costs.

Question 67

Organizational Capabilities

Answer 67

Organizational capabilities refer to what the organization is able to do with the collection of skills, talents, technology, training, and experience possessed by the members of a firm.

Question 68

Organizational Climate

Answer 68

The characteristics describing an organization that are relatively visible and stable, but amenable to change.

Question 69

Organizational Culture

Answer 69

The shared beliefs and expectations among the members of an organization that are relatively enduring and resistant to change.

Question 70

Organizational Myths

Answer 70

Significant stories that are told about an organization's earlier years that impact the way members think about its history even if they are not true.

Question 71

Outlay Cost

Answer 71

A human resource accounting measure that represents the costs of recruiting, selecting, and training the present employees.

Question 72

Outsourcing

Answer 72

The practice of contracting with outside specialists to perform selected human resource functions.

Question 73

Participation Rates

Answer 73

The percentage of a particular group, such as males or females, who are participating as employees in the labor force.

Question 74

PEO

Answer 74

Professional employer organization. Companies that contract with employers to manage human resource functions and employer liability by contractually assuming employer rights and responsibilities.

Question 75

PEST

Answer 75

An analysis that examines the political, economic, social, and technological factors in an organization's environment.

Question 76

Product Departmentalization

Answer 76

An organizational structure where jobs are assigned to units or departments by product.

Question 77

Productivity

Answer 77

An index that is calculated by dividing the total output of goods and services produced in society by the total number of employee hours required to produce them.

Question 78

Regression Analysis

Answer 78

A statistical technique for predicting the value of one dependent variable by a weighted combination of other independent variables.

Question 79

Reliability

Answer 79

Repeatability or consistency of measurement.

Question 80

Replacement Cost

Answer 80

A human resource accounting measure that estimates how much it would cost to replace a firm's existing employees in current dollars.

Question 81

RFP

Answer 81

A formal, standardized document that explains the scope of a project and asks for a bid from vendors.

Question 82

Service Roles

Answer 82

When the human resource department provides assistance to line managers according to their requests.

Question 83

Shared Assumptions

Answer 83

The core beliefs that impact how people think about and respond to organizational events, but which are mostly subconscious.

Question 84

Shared Norms

Answer 84

The common expectations that guide the behavior of organizational members.

Question 85

Simple Random Sample

Answer 85

The method of placing all employees in the sample population and drawing the sample at random. The probability of any one person being selected is exactly the same as for every other person.

Question 86

SOX

Answer 86

Sarbanes-Oxley Act. This law requires publicly traded companies and their independent auditors to demonstrate that their numbers are accurate and that they have processes in place to ensure accurate reporting. Several sections of the law have important implications for human resource activities.

Question 87

Span of Control

Answer 87

The number of subordinates assigned to a supervisor.

Question 88

Staff Authority

Answer 88

The right and responsibility to advise and assist those who possess line authority.

Question 89

Stratified Random Sample

Answer 89

The method of categorizing employees into specified groups according to relevant characteristics, such as job classification or organizational level. Individuals are then selected randomly within each group according to the group size.

Question 90

SWOT Analysis

Answer 90

A popular approach to strategy development which stands for Strengths, Weaknesses, Opportunities, and Threats.

Question 91

Third Country National

Answer 91

Third-Country NationalEmployees who are citizens of neither the home nor the host country.

Question 92

Time to Fill

Answer 92

Total days elapsed to fill requisitions / Number hired

Question 93

Transactional Leadership

Answer 93

A style of leadership that focuses on accomplishing work by relying on contingent rewards, task instructions, and corrective actions.

Question 94

Transformational Leadership

Answer 94

A style of leadership that focuses on communicating an organizational vision, building commitment, stimulating acceptance, and empowering followers.

Question 95

Turnover Rate

Answer 95

[Number of separations during the month / Average number of employees during month] x 100

Question 96

Unemployed

Answer 96

Persons who are not employed but who are available for work and are seeking employment.

Question 97

Unobtrusive Measures

Answer 97

Data collected in such a way that it does not influence how an employee behaves. For example, data obtained from files or archives.

Question 98

Validity

Answer 98

The quality of a measurement, referring to its ability to actually measure or predict what it intends to measure or predict.

Question 99

Value Chain

Answer 99

A strategic concept showing the relationships between organizations, were each firm represents a link in a chain of value that receives inputs from suppliers, adds value to them, and passes them on to buyers.

Question 100

Virtual Expatriate

Answer 100

An expatriate manager who lives at home and works long distance instead of relocating.