Unit 1.1 - Strategic HR Management

Question 1

What is corporate governance and the principles (5)?

Answer 1

Rules, practices, regulations and policies, procedures, and processes that govern organizational activities and guide individual and organizational conduct.

Principles of Corporate Governance:
* Compliance - org should comply with all laws (including the Sarbanes-Oxley Act of 2002)
* Integrity & ethical behavior - org should have code of conduct
* Rights & responsibilities - org should define what these are for each person
* Interests of stakeholders - org should ensure the rights of stakeholders
* Oversight and control - org should establish systems to monitor compliance with the rules, policies, and practices

Question 2

List and describe the HR functions (7)?

Answer 2

Staffing (planning, recruitment, selection), performance evaluation, compensation & benefits, training & development, employee relations, Health, Safety, & Security, and HR research

Question 3

What are the major purposes of having HR policies?

Answer 3

Policies provide direction and a standard and expectations for members or an organization to follow and understand.

• To reassure employees that they will be treated fairly and objectively
• To help managers make rapid and consistent decisions
• To give managers the
  confidence to resolve problems and defend their decisions

Question 4

What are employee handbooks and the topics typically covered in them?

Answer 4

The purpose of an employee handbook is that it provides a central information
source explaining what employees
need to know about the company, mission statement, culture, pay, PTO, clarification that it’s not a legal document

Question 5

What are the three classifications of HR positions?

Answer 5

• General HR manager or executive
  
  • Broad understanding of all functions
• HR specialists
  
  • Specialty focus on an HR function
  • Reports to a higher manager
  • May cross-function with other HR specialists
• Supporting positions
  
  • Administrative in nature
  • Support a managerial role
  • Entry level position

Question 6

List and describe the 4 HR management roles. Who identified them?

Answer 6

Role 1: firm infrastructure (advisory/counseling, service, and control)
Role 2: employee contributions
Role 3: strategic HR
Role 4: transformational change

Dave Ulrich coined this, along with the 2x2 model.

Question 7

What is the 2x2 model and who coined it?

Answer 7

The 2x2 model -

Examines the 4 HR roles with a focus on:
- Process vs. People
- Future strategic issues vs. Day-to-day operational issues

Role #1 (firm infrastructure) is day-to-day operational focus & organizational processes
Role #2 (employee contributions) is day-to-day operational focus & people
Role #3 (strategic HR) is future strategic focus & organizational processes
Role #4 (transformational change) is future strategic focus & people

Dave Ulrich

Question 8

What are the 9 HR competencies of Dave Ulrich’s model (HRCS)? Describe the skills and abilities associated with each.

Answer 8

The HRCS model (HR competency study by Dave Ulrich)

3 core competencies:
1. Strategic - having a knowledge of business context and strategy & application
2. Credible - have trust & influence with key people
3. Paradox navigator - figure out/help with organizational tensions; ex. leaders who are long-term vs. short-term focused

6 competencies that enable the 3 above competencies are:

Strategic -
1. Culture & change
2. Human capital
3. Total rewards

Tactical -
1. Technology & media
2. Analytics
3. Compliance

Question 9

What are 3 types of financial statements? +

Answer 9

• Balance sheet - statement of financial position (ex. end of year); liability + equity = assets
• Income statement - reports profit & loss over a certain period of time
• Cash flow statement - reports the flow of cash in and out of a company

Question 10

What is a budget?

Answer 10

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

Can contain a lot of things, such as resource allocation, assigning responsibilities, setting performance goals

Question 11

Some commonly used methods of budgeting (6)?

Answer 11

• Incremental budgeting - previous budget is basis for new budget; incremental allocation is added to (or subtracted from) the budget (usually a percentage)
• Top-down budgeting
• Bottom-up budgeting
• Activity-based budgeting - org determines which activities need to take place to meets its goals
• Formula-based budgeting - calculated using a pre-determined formula; often used in higher education
• Zero-based budgeting - budgets start from zero and managers are required to justify the expenses