CH 1 - Strategy

Question 1

What question does strategy answer?

Answer 1

What do we do better than anyone else, where are we going as a company and what do we need to do to get there? (pg 28)

Question 2

Intended Strategy

Answer 2

Formulated at the beginning of the year (pg 29)

Question 3

Emergent Strategy

Answer 3

Formulated in response to an unexpected event (pg 29)

Question 4

Realized Strategy

Answer 4

Implemented, which could be the intended strategy or an emergent strategy (pg 29)

Question 5

Corporate Strategy

Answer 5

Focused on overall strategy for the company including mission, values, and plan to achieve. Focus on the long term.

Question 6

Corporate Strategy typically focus on three options..

Answer 6

Growth, Restructuring and Stability (maintenance) (pg 29)

Question 7

Growth Strategy

Answer 7

Focus is to be come more competitive. Impacts HR as creates job opportunities for exiting and future employees.

Question 8

Types of Growth Strategy

Answer 8

1) Organic or incremental growth: expanding the product or service offerings and/or changing the distribution channels 2) Global or international growth: seeking new markets through international expansion 3) Mergers and acquisitions

Question 9

Restructuring Strategies

Answer 9

1) Turnaround: refocusing efforts on existing products/services or by . launching a new product or service. Could choose to downsize, stop selling unsuccessful products aka “retrenchment” strategy
2) Divestiture: selling a division or part of the organization that creates a certain product or service to another org. Brings much-needed capital to focus on profitable parts of the business
3) Liquidation: selling assets at bargain prices, closing businesses and laying off employees aka stop further losses quickly. Some capital gained, but unlike divestiture, liquidation does not add significant value
4) Bankruptcy: closing business and selling assets to pay off creditors. Bankruptcy and Insolvency Act and the Company’s Creditors Arrangement Act both provide a proposal regime to allow the debtor to reorganize and reach compromises with its creditors.

Question 10

Maintenance or Stability Strategies

Answer 10

Some orgs may choose stability, particularly during difficult economic conditions. Small organizations and gov’t departments may choose to maintain current service levels. Less impact on HR than growth or restructuring strategies.

Question 11

Competitive Positing Strategies

Answer 11

Competitive position describes how an org may differentiate itself from it’s competitors. “How should we compete?”

Question 12

Michael Porter’s generic Strategies combines with Gamble, Peteraf and Thompson

Answer 12

Low-cost provider strategy: pricing product or service lower than competitors while appealing to a broad range of customers

Broad Differentiation strategy: differentiating in ways tha will appeal to a borad range of customers

Best-cost provider strategy: giving customers more value by emphasizing low-cost product with upscale differentiation

Focused or market niche based on lower cost: offering low-cost service or product to a select group of customers

Focused or market niche based on differentiation: Offering product or service customized to the tastes and requirements of a very narrow market segment, such as luxury goods or services

Porters model, competitive position is defined by product (cost, quality, variety etc) and market scope (size, geo, demo, income )

Question 13

Vision statement answers the question

Answer 13

Where are we going? Clear and compelling picture of a desired future and serves to unite an organization’s effort. Long-term direction of the organization.

Question 14

Mission Statement answers the question

Answer 14

Why do we exist. Describes the purpose of the org and the value it creates for customers.

Question 15

Steps in the strategic planning process

Answer 15

1) Establish the mission, values and vision
2) Develop objectives
3) Analyze the external environment
4) Identify the competitive advantage
5) Determine the competitive position
6) Implement the strategy
7) Evaluate the performance

Question 16

Values

Answer 16

Describe behaviors that enable the org to accomplish its mission. The values describe the basic beliefs that govern individual and group behaviour

Question 17

Analyzing the external environment

Answer 17

Assessment of political, economic, societal, technological and demographic trends. The political, economic, social, technological and demoraphic (PESTD) analysis framework

Question 18

Why is PESTD analysis useful

Answer 18

1) Enables the org to identify opportunities and be warned of significant threats
2) Reveals significant changes within the organization’s environment and allows the org to develop strategies to deal with those opportunities/threats rather then react
3) Helps avoid putting resources into projects that may . no longer achieve their benefits
4) Helps break the unconscious assumptions in the org as it moves into new markets, develops new products/services.

Question 19

PESTD - What does the “P” stand for?

Answer 19

Political factors - changes to government laws and regulations that impact the economy. Tax law, regulations and policy; labour legislation etc.

Is there an election soon? How could a change in government result in a change in policy?

Question 20

PESTD - What does the “E” stand for?

Answer 20

Economic factors - that can affect the availability and cost of capital through interest rates, exchange rates, and inflation rates.

Question 21

PESTD - What does the “S” stand for?

Answer 21

Social Factors.. include changes in the issues that society pays attention to. Ex, w/ regard to work/life balance for flexible work arrangements. No social tolerance for goods produced in with child labour is used.

Question 22

PESTD - What does the “T” stand for?

Answer 22

Technology Factors - the rate and type of advances in technology. Increase a competitors advantage, decrease the need for labour, decrease the need for levels of mgmt, require the org to outsource actives or restructure.

Question 23

PESTD - What does the “D” stand for?

Answer 23

Demographic factors - balance of gender, age ethnicity, spoken languages, disabilities, mobility, religious belief, culture and tradition, living standards, and income level.

Question 24

Generation X

Answer 24

Aprox 1965-1978… Want to building a portable career

Question 25

Generation Y

Answer 25

Aprox 1979-2000 aka Millennials.. Want to build parallel (multiple) careers

Question 26

Baby Boomers

Answer 26

1946-1694.. Want to build a stellar career

Question 27

Traditionalists

Answer 27

1925-1945.. Want to build legacy

Question 28

Competitive advantage

Answer 28

Orgs characteristics that enable it to earn higher rates of profits than its competitors.

Question 29

Tangible Assets

Answer 29

Things that the org owns that can be converted into economic value. Appear on Balance Sheet. Ex: Land, machinery, raw materials, buildings, inventory, stock price and cash.

Question 30

Intangible Assets

Answer 30

Not consumed and may even grow in value. Do not depreciate like tangible assets but can gain valule over time. Ex: Reputation/goodwill, customer lists, brands, trademarks/patents.

Question 31

Capabilities

Answer 31

Complex combination of skills/abilities and process that represent the orgs capacity to exploit resources. For capabilities to be "competitive" advantage, they must be valuable, rare inimitable and organized.

Question 32

Core Compentencies

Answer 32

Resources and capabilities that enable an organization to produce products and services in a consistent and ongoing manner. Ex. Pixar has consistently produced films that delight both the consumer and the investor

Question 33

Strategic Implementation

Answer 33

Process by which a strategy is put into action. Mgmt always seeks to balance the application of the orgs capabilities to achieve the demands of the short term w/ the orgs long-term goals. Ex. Pixar as an org has consistently grown in size, with diversity of products increasing its market value

Question 34

Program

Answer 34

projects or activities implemented to achieve the orgs strategic goals.

Question 35

Procedures

Answer 35

standard operating procedures, codify the way in which the org deals with problems or opportunities. Free up organizational capacity to focus on unique problems and opportunties w/o having to invest in new capacity.

Question 36

Corporate governance

Answer 36

Way in which an Org is governed, directed and administered

Question 37

Corporate structure

Answer 37

3 important components: Shareholders, Directors, Officers

Question 38

Shareholders/stockholders

Answer 38

Owners or a corporation, who hold shares of stock, which bestows certain rights.

Question 39

Board of Directors

Answer 39

Groups elected by shareholders to handle the overall management of a corporation..

Question 40

Officers

Answer 40

Hired by the board, are the top management and include the president and CEO, VP, Treasurer, Secretary, CFO, CIO, COO. They are responsible for achieving corporate goals and policies

Question 41

Ensuring the basis for an effective corporate governance framework

Answer 41

Corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law, clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.

Question 42

Rights and equitable treatment of shareholders and key ownership functions

Answer 42

Corporate governance framework should protect and facilitate shareholders rights and ensure the equitable treatment of all shareholders

Question 43

Institutional investors, stock markets, and other intermediaries

Answer 43

Corporate governance framework should provide.. Sound incentives throughout the investment chain and provide for stock markets to function in a way that contributes to good corporate governance.

Question 44

Role of stakeholders in corporate governance

Answer 44

Corporate governance framework should .. Recognize rights of stakeholders established by law or through mutual agreements and encourage active co-operation b/w corps and stakeholders

Question 45

Strategic HR Managment

Answer 45

The management of HR philosophies, policies, and practices to enable to the achievement of the organizational strategy. The overall direction the company wishes to take to achieve it's goals through people. Human and intellectual capital is a major source of competitive advantage and it is ppl who are in the end implementing the strategic plan.

Question 46

3 Fundamental aims of Strategic HRM

Answer 46

1) To generate strategic capability by ensuring the orga has the skilled, committed and engaged employees it needs to achieve sustained competitive advantage 2) Develop plans of intent that means to achieve ends; and 3) To focus on the long-term allocation of organizational resources that match those resources and capabilities to the external environment.

Question 47

Objective of strategic HRM

Answer 47

Provide a sense of direction so that business needs and individual and collective needs can be met. Ex: The development and implementation of coherent and practical HR policies, programs and structures.

Question 48

Strategic HR Planning - 3 Important Purposes

Answer 48

3 Important purposes: 1) Ensure adequate HR to meet the goals and operational plans or an org - "the right ppl w/ the right skills at the right time" 2) Keep current with the working environment and social, economic, legislative and technological trends that impact the orgs HR 3) Maintain flexibility so that the org can manage change

Question 49

Strategic HR Planning seeks to..

Answer 49

Predict the future HR management needs of the org through analysis of the orgs current HR, external labour market, and the future HR environment

Question 50

3 approaches to linking HR strategy with corporate strategy

Answer 50

1) Corporate strategy leading to HR strategy: results int he org's strategy being developed first, HR strat second 2) HR competencies leading to business strat: starts with the identification of HR competencies, then lead to corporate strategies. 3) Reciprocal interdependency between HR strategy and business strategy: resulting HR strat influencing bus strat and bus strat influencing HR strat

Question 51

Responding strategically to changes in the local and global market

Answer 51

When orgs expand, relocate, merge or acquire other orgs, HR professionals face having to provide recommendations. Applies knowledge of Six Sigma, re-engineering, downsizing, outsourcing and change management are the core competencies required to respond to these challenges.

Question 52

Monitoring global economic changes that impact HR practices

Answer 52

Global economy has impact on the suppy/demand for labour and types of work available in any domestic economy. Competing for people and recruting globally raises issues how orgs employ in different countries.

Question 53

Establishing and contributing to the achievement of social responsibility and sustained goals

Answer 53

Global economy = enhancement of working conditions for workers in developing countries. Developing countries are sensitive to purchasing products that do not respect the rights of workers. CSR and environmental stability have become competitive advantages for orgs.

Question 54

Achieving success with automation and technology

Answer 54

Technology continues to affect the types and level of skills required of workers as well as the systems required to manage and measure an effective workforce. Collaborative software = employees anywhere to interface w/ others also shapes where and how work is preformed.

Question 55

Containing costs

Answer 55

Strategies that enhance productivity either though greater efficiencies or decreased costs have a significant impact on an orgs workforce. Downsizing, furloughing, outsourcing, offshoring and employee leasing are all effective HR strategies focused on containing costs.

Question 56

Responding to changing demographics

Answer 56

Multicultural, gender, and age perspective orgs cultures must be robust enough to engage all types of workers. This challenge is one likely has the greatest direct impact on he immediate management of HR.

Question 57

Adapting to educational and cultural shifts affecting the workforce

Answer 57

Diverse workforce = need to accomodate various customs and employee priorities. Cultural attitudes, employee rights, concern for privacy, the changing nature of work, changing attitudes towards work, increased desire for work/life balance

Question 58

Employee enagagement

Answer 58

Connection people feel to their work that results in higher levels of performance, commitment and loyalty

Question 59

Leadership Theories

Answer 59

3 Main Categories 1) Classical - People only have economic and physical needs and therefore pay much less attention to any social or emotional needs 2) High involvement approach - work quality and efficiency improve when employees are empowered to take ownership of their processes and make decisions relating to their work 3) HR approach - People have social needs and respond well when they re part of a supportive team with opportunities to learn and grow.

Question 60

Great Man Theory

Answer 60

Leaders are born and not made. Great leaders will arise when there is a great need. Mythic domain, aristocracy were leaders, gender issues not on table when this was proposed by Thomas Carlyle

Question 61

Trait Theory

Answer 61

People are born with inherited traits. Some traits are suited to leadership. Ppl who make good leaders have the right combo of traits.

Question 62

Behavioral theory - managerial grid* important

Answer 62

Assumes: Leaders can be made, rather than are born. Successful leadership is based in definable, learnable behavior. Managerial grid - tool used for identifying leadership style as a combination of "concern for people" and "concern for task" (also referred to as "relationship" and "productivity").

Question 63

Participative Leadership - Lewin's leadership styles

Answer 63

3 Different Styles of Leadership (1939) Autocratic, Democratic, Laissez-Faire

Question 64

Likert's leadership styles

Answer 64

4 Main styles of leadership Exploitive authoritative - leader has low concern for ppl and uses methods as threats / fear based to achieve conformance. Benevolent authoritative - Leader adds concern for ppl to an authoritative position. Uses rewards to encourage appropriate performance and listens more to concerns lower down the organization.. although almost all major decision s are still made centrally. Consultative - Upward flow of info here is still cautious, although the leader is making genuine efforts to listen carefully to ideas. Major decisons are still largely centrall made Participative - leader makes maximum use of participative methods, engaging ppl lower down in the org in decision making. Ppl across org are psychologically closer together and work well.

Question 65

Situational Leadership - Heresy and Blanchard

Answer 65

Notion that the most appropriate stye to be adoped by a leader depends on the situation.

Question 66

4 Classic Styles - Situational Leadership Heresy and Blanchard

Answer 66

1) Directing - leader defines the roles and tasks of the "follower" and supervises them closely. Appropriate when leading employees who have little ability - skill and confidence. 2) Coaching - leader still defines roles and tasks but seeks input from the follower. Communication is much more two way (selling). Appropriate when leading employees who have some ability but little confidence. 3) Supporting - leaders passes day-to-day decisions, to the follower. Facilitates and takes part in decisions but responsibility for taking actin is with the follower (participating.) Appropriate when leading employees who have the ability and experience to performance the job. 4) Delegating: Leader is still involved but control is wit the follower. Follower decides when/how the leader will be involved (delegating). Appropriate when leading employees who have the ability, experience, confidence, and motivation to perform the job well.

Question 67

Path-goal leadership

Answer 67

Similar to situational, suggests that the leader will take a particular path of action that will lead to the desired result through a) determining the employee and environmental characteristics b) choosing a leadership style c) focusing on the motivational factors that will help the employee succeed.

Question 68

Contingency Leadership

Answer 68

Takes into consideration situational dynamics: 1) Leader-employee relationship: Trust, the relationship is positive (good); lack of trust, the relationship is negative (poor) 2) Task structure: a measure of clarity regarding the task, how it can be performed, and the outcome that is expected. 3) Positional power: degree and type of influence the leader has over the group

Question 69

Contingency Leadership - Least Preferred Co-Worker

Answer 69

Scale, which measures the leader's preference for working with different types of ppl. High score = leader is ppl orientated, low score = likely to be task-orientated. Underlying assumption is that a task orientated leader is more dissatisfied with his/her least preferred worker than a ppl orientated leader, will always gain some level of interpersonal satisfaction from interactions with ppl regardless of the work's performance level.

Question 70

Styles of Leadership

Answer 70

Autocratic - characterized by taking control over all decisions with little imput from other Laissez-faire: a leader who is "hands off" Democratic - shares leadership with group Charismatic - Personal characteristics that enable them to inspire/motivate others Bureaucratic - hierarchical leader who focuses on formal channels of communication and rules as a means of control.

Question 71

Power Dynamics - Referent Power

Answer 71

Result of earning respect and loyalty

Question 72

Power Dynamics - Informal Power

Answer 72

Gained from having info or the ability to create info that others do not have

Question 73

Power Dynamics - Expert Power

Answer 73

Derived from having a valuable expertise

Question 74

Power Dynamics - Coercive POwer

Answer 74

Based on threats or punishment to achieve followershiop

Question 75

Power Dynamics - Legitimate Power

Answer 75

Formal power inherent in one's postion or rant within an organization

Question 76

Power Dynamics - Reward

Answer 76

Derived from the provision of rewards to achieve follership

Question 77

Organization Development (OD) aka Change Management or Comployee-centered management

Answer 77

Use of behavioral science concepts principles and research in conjunction with analytical, decision-making and problem-solving techniques to undertake planned organizational interventions aimed at improving performance, organizational health and employee well being

Question 78

Action Research

Answer 78

Gathering inputs from a range of organizational sources (surveys, focus groups, and performance data) developing behavioral science based change programs

Question 79

In OD, (3) key attitudes are considered.... also these attitudes are define "employee engagement"

Answer 79

Job satisfaction: attitude one has towards the job or workplace Work motivation: attitude one has towards good job performance Organizational identification: attitude one has towards a sense of shared goals and values aka membership or belongingness

Question 80

In OD, a cornerstone concept is..

Answer 80

Employee involvement/participation - freedom of employees to take action without permission, to provide input and suggestions (ie have a "voice") to investigate and design new initiatives, to directly measure and track performance, or to simply form a social committee. Aim to to assume ownership

Question 81

Job Design

Answer 81

process of redesigning work so that there is greater skill variety or challenge, increased task identity and significance to the worker, greater levels of autonomy.

Question 82

Job enrichments

Answer 82

OD strategy aims to enhance employee motivation. Uses the notion of "vertical loading" increased responsibility, control, variety, learning and opportunity for achievement are built into work/job.

Question 83

Process improvement teams

Answer 83

cross-functional or cross-occupational teams formed to examine a process for the purpose of recommending improvements.

Question 84

John Kotters Change Process

Answer 84

1) Establish a sense of urgency 2) Build a guiding coalition w/ power to effect change 3) Form a clear vision and initiatives 4) Enlist others by sharing the vision 5) Enable people to clear the obstacles to change 6) Sustain and accelerate the change 7) Generate success by having short-term gains 8) Institute the changes

Question 85

Kurt Lewin's Change Process

Answer 85

3 Stage Theory - aka "Unfreeze, change, freeze" All systems seek equilibrium; otherwise, a system would deteriorate into chaos. Org has to be destablized before it change be changed. Then needs to be stabilized, so doesn't become chaos.

Question 86

Kurt Lewin's Change Process - Unfreezing and Force Field Analysis

Answer 86

Getting ready to change. Point of understanding that change is necessary and getting ready to move away from our current comfort zone. Getting motivated for the change, weighing pros and cons, before you take any action. This is "Force filed analysis" which highlights the driving and resisting factors related to the change

Question 87

Kurt Lewin's Change Process - Change

Answer 87

A process, not an event. Transition period, ppl go through a state of confusion and make adjustments in reaction to the change. This stage is the hardest as ppl are unsure about hte change and fearful of outcome

Question 88

Kurt Lewin's Change Process - Freezing

Answer 88

aka "refreezing", establishing stability once the changes have been made. Changes are accepted and become the new norm.

Question 89

Change Agent

Answer 89

OD practitioner, who is tasked with managing the change initative

Question 90

Paradigm Shift

Answer 90

Occurs when the fundamental assumptions underlying n aspect of org life are challenged.

Question 91

Reaction to Change

Answer 91

Reaction of organization members, whereby they go through the following stages. Denial, resistance, exploration and commitment OD activities are directed to reducing the negative aspects of the first two stages and heightening the impact of the last two stages

Question 92

Division of Labour

Answer 92

Degree of specialization (from high to low) of jobs

Question 93

Departmentalization

Answer 93

Grouping of jobs within an org.

Question 94

Delegation of authority

Answer 94

Degree of athority vested in others. Related to the degree of centralization and decentralization in the org

Question 95

Span of Control

Answer 95

Number of jobs or direct reports falling under one area of responsibility. Dependent upon required contact, level of subordinate education and training and ability to communicate.

Question 96

Simple organizational structure

Answer 96

Samm orgs where the decision making is centralized with the owner. Typically a flat structure

Question 97

Modular Org

Answer 97

Very flexible, divide org units into small business units

Question 98

Hierarchiacal or bureucratic

Answer 98

Many levels of authority with narrow spans of control. Op-down mgmt, many levels of communication and career paths, highly specialized jobs. Command and control management style

Question 99

Flat orgs

Answer 99

Few levels of authority with large spans of control.

Question 100

Boundaryless Orgs

Answer 100

Joint ventures with customers, suppliers and/or competitors

Question 101

Matrix Orgs

Answer 101

Type of flat structure whereby individuals with functional expertise are grouped into organizational units focused on the accomplishment of a project or program.

Question 102

Risk Managment

Answer 102

Process of identifying and evaluating risks and selecting and managing techniques to adapt to risk exposure. An organization must reduce its risk and potential liability wherever possible. Although this includes corporate risk management, it also involves protecting employees from risks such as violence in the workplace and employing emergency planning for unforeseeable emergencies.

Question 103

Managing Workplace Violence

Answer 103

An employer can be held liable for any and all harm caused by or to an employee. Any act which a person is abused, threatened, intimidated, or assaulted in their employment. Violence could include aggression, harassment, emotional abuse, bullying, incivility and/or unwanted sexual attention or coercion. Domestic violence may follow a victim to work, making it a workplace issue.

Question 104

Workplace Violence - 4 Main Types

Answer 104

1) Criminal Intent - member of the public (no relationship to the org), engaging in a criminal act. Ex. bank robber 2) Customer/Client - Member of the pubic who receives a service or product from the organization. 3) Worker-on-Worker 4) Personal Relationship - Spouse or partner of employee

Question 105

Steps that Employers can take to Manage the risk of Workplace Violence

Answer 105

1) Identify jobs with a hih risk of violence: predictors include working with the public, working late, working alone, working in a period of intense organization change 2) Institute a workplace violence policy: develop, support, and communicate the policy to employees ex. Handbook 3) Crate a healthy working environment 4) Heighten security measures: improving external lighting, use of drop safes to min cash on hand, silent alarms, increased staff etc 5) Provide workplace violence training 6) Improve employee screening

Question 106

Emergency Planning and Management

Answer 106

Practical emergency plan in place to minimize damages to people or property from sudden or unexpected situations. Emergency plan will provide guidance in case of emergency, enable discovery of previously unknown hazardous conditions (lac of resources, promote safety awareness)

Question 107

Emergency Plan Generally Contains the Following Objectives

Answer 107

Prevent fatalities and injuries Reduce damage to buildings, stock and equipment Protect the environments and community Accelerate the resumption of normal operations

Question 108

Development of the Emergency Plan begins with..

Answer 108

Vulnerability assessment. Identifies hazards and: - How likely situation is to occur - Means are available to stop or prevent situation - Necessary for given situations

Question 109

Emergency Plan components

Answer 109

Objective - purpose and which staff put the plan into action Organization - appointment of emergency coordinator, specific duties, responsibilities, authority and resources Procedures - pre-emergency preparation and provisions for altering and evacuating staff, handling casualties, and containing the danger Testing and revision: exercises and drills

Question 110

Financial risk

Answer 110

potential for loss or chance that an investment will not achieve the expected level of return.

Question 111

Crisis Management include the following phases

Answer 111

1) Signal detection - signs potential crisis could occur 2) Preparation and prevention - proactive steops tow ard off that criss 3) Damage containment - addressing the crisis in ways that restrict it from spreading or mitigate the damage tha tit poses 4) Business recovery - short and long term plans to resume business 5) Learning - goal of improving for future

Question 112

Effective Implementation of Risk Managment

Answer 112

- Not eliminating risk but ensuring that risks are understood, management and communicated. - Enterprise wide approach - Board should review and provide guidance about the alignment of corporate strategy with risk appetite - Needs to be independent of profit centers - Process should be appropriately disclosed.

Question 113

Which strategy is an attempt to increase the viability of an organization?

Answer 113

Turnaround strategy

Question 114

What is Lewin’s model for managing change based on?

Answer 114

Force field analysis

Question 115

Which term is defined as the systematic, regular monitoring of major external forces that influence the organization?

Answer 115

Environmental scanning

Question 116

What is the primary challenge when dealing with Generation Y employees?

Answer 116

Their pervasive feeling of boredom

Question 117

the action of adding more challenging responsibilities to an individual’s job?

Answer 117

Increasing job enrichment

Question 118

Which workplace characteristics are typical of baby boomers?

Answer 118

High achieving

Question 119

What does the managerial grid measure?

Answer 119

A manager’s concern for production and relationships

Question 120

What does a mission statement describe?

Answer 120

What we do

Question 121

Why do change efforts fail

Answer 121

1) Not