Chapter 2

Question 1

Strategic Planning

Answer 1

Procedures to make decisions about organization’s long-term goals and strategies.

Question 2

Human Resources Planning (HRP)

Answer 2

Anticipating and providing for the movement of people into, within, and out of an organization.

Question 3

Strategic human resources management (SHRM)

Answer 3

Identifying and analyzing patterns of human resources deployments and activities that enable an organization to achieve its strategic goals (Combination of Strategic Planning & Human Resources Planning)

As the commoditization of products becomes increasingly focused on price, talents are what differentiates what companies are successful or not.

Question 4

What is High-performance work systems? What factors add into HPWS?

Answer 4

HPWS is a system that emphasizes the involvement of employees and commitment rather than one side of control.

1. Involving an employee’s personal stake to actualize a company’s vision.
2. Ensure that they attract, select, and train the best talent
3. Employee empowerment
4. Aligning leaders to make sure their focus aligns with the organization

Question 5

Strategic Formulation

Answer 5

HRP depicts what is possible based on the statistics to make decisions on strategic planning.

Question 6

Strategic implementation

Answer 6

HR’s role in strategic implementation:
1. Determine how many human resources demanded
2. Determine how many human resources are available in the labour market

Question 7

Steps in establishing strategic planning

Answer 7

1. Establish vision, mission, and values.
2. External analysis
3. Internal analysis
4. Strategy formulation
5. Strategy implementation
6. Evaluation

Question 8

Attrition

Answer 8

Natural turnover rates in an organization.

Usually are accompanied by other methods such as hiring freeze

Question 9

What is balanced scorecards?

Answer 9

framework that helps managers translate strategic goals into operational objectives

Question 10

Benchmarking

Answer 10

identifying “best practices” in a given area and then comparing your practices and performance to those of other companies.

Question 11

Core capabilities

Answer 11

Bundles of people, processes, and systems that integrate. It distinguishes an organization from its competitors in order to deliver a unique value for the customers.

Question 12

Core Values

Answer 12

Beliefs and principles that the company uses as foundations for its decision-making processes (underlying parameters).

Question 13

Cultural Audits

Answer 13

Analyzing values, assumptions, and expectations of their workforce.

Question 14

What is environmental scanning?

Answer 14

Systematic monitoring of the major external forces influencing the organization.

Question 15

What is Hiring Freeze

Answer 15

Temporary disable of the entire recruitment, selection, and training processes. Firms are not accepting new employees.

Question 16

Human Capital Readiness

Answer 16

Evaluating the availability of critical talent inside of the company and comparing it to the supply available. Identify the gap that exists between companies’ demand and firm’s or market supply.

Question 17

Management Forecasts

Answer 17

the opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs.
(Qualitative)

Question 18

Markov Analysis

Answer 18

A method to track the pattern of employee movements in a company. For example, a company can predict how many employees they will need in the next year by the result of this analysis, which will predict how many employees will exit their organization or get promoted to a different position, therefore leaving vacant spots.

Question 19

Mission

Answer 19

basic purpose of organizations

Question 20

Organizational capability

Answer 20

Capacity of organization to act and change in pursuit of sustainable competitive advantage.

1. Coordination flexibility: rapid reallocation of resources to new or changing methods.
2. Resource flexibility: having people that can do many different things in different ways.

Question 21

Quality of fill

Answer 21

How well new employees are performing on the job.

Question 22

Replacement charts

Answer 22

lists current jobholders and people who are potential replacements if an opening occurs.

Question 23

Severance pay

Answer 23

payment that are given to the employees prior to the employer-initiated termination

Question 24

Skill inventories

Answer 24

List each employee’s

1. Education
2. Work experience
3. Vocational interests
4. Specific abilities and skills
5. Compensation history
6. Job tenure

Question 25

Staffing tables

Answer 25

Graphic representation of all organization’s jobs with the number of employees occupying those jobs and future employment requirements

Question 26

Stakeholders

Answer 26

Key people that have an interest in a firm’s activities. They can affect and be affected by the firm.

Question 27

Strategic vision

Answer 27

Depiction on what the company will become and where it will be in the future.

Question 28

SWOT analysis

Answer 28

comparison of strength, weakness, opportunities, and threats for strategy formulation purposes.

Question 29

Termination

Answer 29

Permanent separation.
reduce the size of the workforce and thereby save money.

Question 30

Trend analysis

Answer 30

firm’s employment requirements are forecasted on the basis of some organizational index. Relies on a single factor (i.e. sales) to predict future employment needs.

Question 31

Value creation

Answer 31

Process of creating value that would differentiate a company’s product from its competitors. It is the amount of benefits provided by a product and/or service subtracted by costs to produce them.

Question 32

Classification of workers

Answer 32

Strategic knowledge workers:
Unique skills
High Value
Engaged in knowledge work
Bound in a long-term commitment by the companies
- Computer scientists, petroleum engineers, etc.

Core employees:
Skills that are valuable, but are not unique.
Replaceable
Transferable skills
- Sales people or truck drivers.

Supporting workers:
Less strategic value and are widely available in the labor market.
Hired on a contract basis to support core and strategic knowledge workers.
- Maintenance workers, clerical workers, etc.

External partners:
Lawyers & Consultant
Cannot be internally employed, indirect link to strategy.
Specialized skills
Investment is made to exchange information and knowledge.
Companies establish long-term relationship w/ firms.

Question 33

succession planning

Answer 33

Identifying, developing, and tracking key individuals for executive positions.

Question 34

4 types of companies culture

Answer 34

• “Clan culture”: employees are closely knit and have great concern for one another and the customers
  Starbucks & many MSMEs.
• “Adhocracy”: risk-taking, innovation, and entrepreneurship -> google.
• “Market”: competitive, result-oriented behavior
  investment banks.
• “Hierarchical”: formal structures and procedures, efficiency are greatly valued.
  Utility-type companies such as railroads