What is strategic management?
a process, an approach to addressing the competitive challenge an organization faces.
What are the 2 phases for the strategic management process?
- 1. strategy formulation
- 2. strategy implementation
What is strategy formulation? (5)
- 1.organization's mission
- 2. goals
- 3. external analysis
- 4. internal analysis
- 5.strategic choice
What is strategy implementation?
- constructing and allocating resources to enact the strategy a company has chosen
- HR needs, HR practices, HR capability, HR actions, firm performance
What are 2 organizational strategies?
What are 2 startegies for different types of employees?
cost (seeks efficiancy) and differentiation (risk takers)
What is the legal system in the US?
- 1. legislative: develop laws
- 2. executive: passes laws
- 3. judicial:
What are three theories of discrimination?
- 1. disparate treatment: diff treatments given based on race, color, religion, sex, nationality, disbility (–Bona fide occupational qualifications (BFOQ)
- 2. disparate impact: facially neutral employment practices disproportionately excludes group
- 3. reasonable accommodation: accessible for disability/religion
What is the EEOC and its 3 responsibilities?
- equal employment opportunity commission, responsible for enforcing most LEO laws
- 1. investigating and resolving discrimination complaints
- 2. gathering info
- 3. issuing guidelines
What is the OFCCP and its 3 components?
- office of federal contract complience programs - enforcing executive orders that cover business with fed. gov.
- 1. utilization analysis: comparison of employers workforce with that of available labor supply.
- 2. goal and timetables: written plan that specifies percentage
- 3. action steps: written plan of what an employer plans to do
What is the work flow analysis?
- 1. analyzing work outputs: product/service/info provided by a work unit
- 2.analysis work process: activities that workers engage in to produce a given output
- 3.analysis work inputs: identify the inputs used in the development of the work unit's product (raw materials, equipment, and human skills/resources)
focuses attention on both identifying work-unit outputs and specifying the levels of required performance for diff levels of effectiveness. (work outputs)
What are 2 organizational structures?
- 1. dimensions: centralization (decision-making authority resides at the top of the organization) & departmentalization (work units are group based on functional similarity or similarity of work flow)
- 2. structural configurations: functional structure & divisional structure
What is functional structure/deparmentalization (structural configuration)?
they identify with their department and cant always be relied on to make decisionsthat are in the best interests of the organization as a whole.
What is a divisional structure (structural configuration)?
almost like a seperate, self-sufficient, semi-autonomus organization.
What are the 4 work-flow design approaches?
- 1. mechanistic approach: focuses on –task specialization, skill simplification, repetition
- 2. motivational: the psychological meaning (job complexity: job enlargement, job enrichment, the construction of jobs around sociotechnical systems)
- 3.biological: physical demands, ergonomics, work conditions
- 4. perceptual: focuses on human mental capabilities and limitations
What is ergonomics?
the interface between individuals' phycological characteristics and the physical work environment.
What are the 3 forecasting HR needs?
- 1. Determining Labor Demand: –external in nature
- 2. Determining Labor Supply: - internal movements caused by transfers, promotions, turnover, retirements, etc
- 3. determening labor surplus or shortage
What is transitional matrix (determining labor supply)?
shows the proportion or number, of employees in different job categories at different times and how people move from one job to another in the organization and how many people enter and leave the organization
What are the 3 strategies to deal with the current HR levels and needs?
- employing temporary workers
- outsourcing and offshoring (special case of outsourcing where the jobs that move actually leave one country and go to another)
What are the 6 sources of recruitment?
- 1.Internal vs External: employees are well known and are knowledgeable about the organization and jobs. (not enough)
- 2. Direct Applicants and Referrals: apply for a vacancy without prompting from an organization (low cost)
- 3. Advertisements in newspapers and periodicals: large volume, low quality recruits and is more expensive.
- 4. Electronic Recruiting
- 5. Public and Private Employment Agencies: Agencies will
- search their computerized inventory of individuals searching for work for an organization at no charge.
- 6. Colleges and universities: increase effectiveness, internship programs.
What are the 6 standards for selection methods?
- 1. reliability: the degree to which a measure of physical or cognitive abilities, or traits, is free from random error
- 2. validity: the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance.
- 3.content: test demonstrating that the items, questions, or problems posed by a test are a representative sample
- of what occur on the job.
- 4. generalizability: the degree to which the validity of a selection method established in one context extends to other contexts.
- 5. utility: is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations.
- 6. legality: conform to existing laws and legal precedents
What are the 3 contexts for generalizability?
–different samples of people
–different time periods
What is the correlation coefficient (reliability)?
measure of the degree to which two sets of numbers are related
What is criterion-related validation?
- a method used for validity.
- 2types: predictive (prior) & concurrent (already on job)
What are the majority of suits filed by job applicants (legality)?
ADA, Cival rights act 1991, Age discrimination (over 40)
What are the 6 types of selecting methods?
- 1. interviews
- 2. References, Biographical data, and Application Blanks: gather background information on candidates.
- 3. physical ability tests
- 4. cognitive ability: mental rather than physical capacities.
- 5. personal inventories: personality characteristics
- 6. work samples: simulate the job in miniaturized form.
What are 3 types of cognitive ability tests?
verbal, quantitative (speed), reasoning
What are the 3 organizational needs assessment?
- 1. organizational analysis: determining the business appropiateness of training
- 2. personal analysis: who needs training and if ready
- 3. task analysis: tasks, knowledge, skills, and behaivor for training
What are the 2 types of training methods?
- hands-on methods: On-the-job training, Self-directed learning, Simulations, Business games and case studies, Behavior modeling, Interactive video, E-learning
What are the 5 training evaluation designs?
- Posttest only: (low cost, time, &strength)
- Pretest/Posttes: (low cost & time, med strength)
- Posttest only with comparison Group: (med cost, time, & strength)
- Pretest/Posttest with Comparison Group: (low cost, time & high strength)
- Time series: med
What are the 5 approaches to performance management?
- comparative: ranking, forced distribution (ranked in groups), paired comparison
- attribute: graphic rating scales (5-point rating scale), mixed-standard scale (good, average, and poor)
- behavioral: critical incidents (keep record of specific effective and ineffective performance), BARS (specific levels of performance), Behaivor Observation Scale (rate of frequency/more scales), Organizational Behavior Modification (behavioral feedback and reinforcement), Assessment centers( multiple raters evaluate employees’ performance on a number of exercises)
- result: management by objectives (top management pass down goals), ProMES (motivate to higher productivity)
- quality: Process-flow analysis (idntifies action/decision necessary), Cause-and-effect diagrams, Pareto chart (highlights cause of problem), Control chart (multiple points in time), Histogram (large sets of data), Scattergram (shows relationship)
What are the 4 sources of performance info?
managers, peers, subordinates, self, customers
What are the 4 forms of rater errors?
- similar to me: judge those who are similar to us more highly
- contrast: compare
- distributional errors: result of using only one part of the rating scale
- halo/horns: posivite/negative
Training vs. Development
- development: formal education, job experiences, relationships, and assesment of personality and abilities that help in future
- training : focuses on current perfomance job
What are forms of training and development?
job experiences: job enlargement, job rotation, transfer, promotion, and downward move
What are the 4 steps of alternative dispute resolutions?
- (does not rely on legal system)
- 1. open-door policy: attempt at settlement together
- 2. peer review: same level peers attempt to help arrive at a settlement
- 3. mediation: 3rd party outside of organization, non binding process, helps arrive at settlement
- 4. arbitration: pro resolves unilaterally by rendering a specific decision or award
What is are the 3 processes of job withdrawal?
- 1. behavioral change (whistle-blowing - making grievances public by going to the media or government)
- 2. physical job withdrawal
- 3. psychological job withdrawal
What are the 5 causes of job dissatisfaction?
- unsafe work conditions (link financial bonuses)
- personal dispositions (negative affectivity)
- tasks and roles (job rotation)
- supervisors and coworkers
- pay and benefit
product market vs. labor market
- Product-market comparisons will be more important when: Labor costs represent a large share of total costs, Product demand is elastic, The supply of labor is inelastic, Employee skills are specific to the product market
- Labor-market comparisons will be more important when: Attracting and retaining employees is difficult, The costs of recruiting are high.
What is rate rages?
different employees in the same job that may have different pay rates
key jobs vs. non key jobs
- Key jobs are benchmark jobs that have relatively stable content and are common to many organizations so that market-pay survey data can be obtained.
- Nonkey jobs are unique to organizations and cannot be directly valued or compared through the use of market surveys.
What is job structure?
- relative worth of various jobs in the organization, based on internal comparisons.
- job evaluation (composed of compensable factors)
What is pay structure?
- market survey approach
- pay-policy line (relationship between a job’s pay and its job evaluation points)
- pay grades (Grouping jobs of similar worth or content together for pay administration purposes)
What are the 3 employee motivational theories?
- reinforcement theory: a response followed by a reward is more likely to recur in the future
- expentancy theory: motivation is a function of valence, instrumentality, and expectancy
- agency theory: the interests of the principals (owners) and their agents (managers) may no longer converge.
What are 3 types of cost of agency theory?
- •attitudes towards risk
- •decision-making horizons
What are 6 forms of employee compensation?
- 1. merit pay: annual pay increase
- 2. individual incentitives: performance is usually measured as physical output rather than by subjective ratings
- 3. profit sharing: payments are based on a measure of organization profits.
- 4. ownership: stock options, ESOPs
- 5. gain sharing: sharing productivity gains with employees
- 6. skill based
What is ESOPs?
employee ownership plans that give employers certain tax and financial advantages when stock is granted to employees
What are the various forms of employee benefits? (5)
- 1. social security: old-age insurance, unemployment insurance, survivors' insurance, disability insurance, hospital insurance, and supplementary medical insurance.
- 2.private group insurance: medical insurance (COBRA), disability insurance (long/short term plans)
- 3. retirement: defined benefit (guarantees specific; PBGC, ERISA), defined contribution (no gurantee; small companies), cash balance plans, funding/communication/vesting requirements
- 4. pay for time not worked: sick leave no more than 26 wks
- 5. family-friendly policies: family and medical leave act, child care
What are the 4 major objectives of unemployemnt insurance?
- 1. offset lost income
- 2. help find new job
- 3. provide incentive for employers to stabilize employment
- 4. perserve investment
What does COBRA require?
requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as termination
What are 3 types of defined contribution plan?
- money purchase plan
- employee stock ownership plan
- profit-sharing plan
What are 6 forms of union security?
- 1. checkoff provision: automatic deduction of union dues from an employee's paycheck
- 2. closed shop: person must be a union member
- 3. union shop: requires certain length of time after beginning employment
- 4. agency shop: requires pay but not to join
- 5. maintenance of membership: must remain members through the life of the current contract
- 6. right-to-work law: states may decide to make mandatory union membership/fees illegal
What are the 4 forms of negotiation (of labor management process)?
- 1.Distributive bargaining: focuses on dividing a fixed economic "pie".
- 2.Integrative bargaining: has a win‑win focus; it seeks solutions beneficial to both sides.
- 3.Attitudinal structuring: refers to the relationship between labor and management negotiators.
- 4.Intraorganizational bargaining: focuses on the conflicting objectives of factions within labor and management
What are the 4 factors of HRM international market?
- 1. culture
- 2. education/human capital
- 3. economic system
- 4. political/legal system
What are the levels of globalization?
domestic, international, multinational, and global
What are the types of international employees?
- Third Country Nationals