HR Expertise: Organization Flashcards
(36 cards)
Centralized HR
aka corporate HR. The function resides at the corporate level, where department members set consistent policies and standards for the entire firm. The main drawback is that it can be too rigid and not account for the nuances of individual company locations.
Decentralized HR
when the HR function is housed at the local level. Because each site will be able to create policies and standards that work best for them, there will be little consistency among locations.
Leading indicators
Anticipate, precede, and predict future performance. For example, a leading indicator could be foreseeing the amount of time to fill key role vacancies to ensure a qualified and efficient workforce.
Lagging indicators
Measure the result of a process or change and often gain more consideration because they analyze revenues that executives use to measure success.
Balanced scorecard
Reflects the vision and strategy for this success from the financial outlook, customer perspectives, and internal business processes.
Propinquity or proximity theory
based on geography
Exchange or benefit theory
based on rewards
Balance theory
based on similar attitudes or interests
Activity theory
based on occupational task
Three types of formal groups
Command groups – departments on an organizational chart
Task groups – working collaboratively toward a common task
Functional groups – created to accomplish specific goals and objectives for an unspecified period of time.
Group development stages (5)
Forming – this entails superficial introductions and determining boundaries of acceptable behavior
Storming – this is the most difficult stage. The team must work through conflicts related to authority, vision and values, personality, and cultural differences. The amount of work often seems overwhelming at this point, and team members struggle to listen to the opinions and experiences of others. If quality improvement processes are implemented and there is good communication, however, these barriers can become beneficial later on.
Norming – this entails greater cooperation and more cohesion as the team establishes norms for assignment completion, decision-making, and conflict resolution. There are three parts to norming: reducing conflicts as the team becomes more relaxed; developing a routine through scheduled events, such as meetings; and facilitating cooperation through team-building events.
Performing – this involves effective and unified team performance as the team addresses its objectives. Conflicts are mostly resolved, and the team has a clear purpose and structure.
Adjourning – this is the process of ending the group. Group members say goodbye to each other. Good closure is important.
Task cohesion
defines how well a group works together to accomplish goals
Social cohesion
defines the sense of belonging held by members of the group.
Five types of Organizational Design Structures
- Customer Organizational Structure
- Functional Organizational Structure
- Divisional Organizational Structure
- Matrix Organizational Structure
- Geographic Organizational Structure
Customer Organizational Structure
Often seen in health care, this structure is utilized by firms that provide a service. It organizes departments to provide specialized solutions to different customer segments.
Can provide exemplary customer care, but can also pose problems for the organization. Each customer division will have its own rules and processes that can lead to duplication of efforts or conflicting systems.
Functional Organizational Structure
Organizes firm departments based on their function or what they do for the company.
Promotes the development of experts in their fields, ensures employees work in their areas of expertise, and is easy to understand. However, there is little cross-department collaboration and enacting change may be difficult.
Divisional Organizational Structure
Vertical/similar to functional structure.
Some collaboration within each division, making the structure less siloed. Faster decision-making. Could also lead to duplication of efforts, hoarding of resources by each division, and potential competition for customers.
Matrix Organizational Structure
Combines functional and product departmentalization. Employees ore departments will report to both product and functional managers that are responsible for performance. One manager may be more administrative focused on a core business unit (e.g. HR, IT, or finance) whereas the other is typically involved with product, service, customer, or location.
Best for uncertain environments that deal with constantly changing products and/or a strong focus on the customer experience.
o Pros: support functional and divisional partnership. Technical expertise is paired with marketplace responsiveness.
o Cons: reporting relationships may cause confusion, resulting in increased stress and lower performance levels.
Geographic Organizational Structure
The firm organizes their business functions or departments based on their geographic location.
Five designs influencing organizational structure
- Departmentalization
- Delegation of authority
- Span of control
- Division of labor
- Coordinating mechanisms
Markov Analysis
An example of probabilistic forecasting. Tracks the movement of employees among different job classifications to forecast the movement among departments, operating units, salary levels, or from one category to another.
Delphi Technique
Consists of having experts provide their best estimates of future needs based on questionnaires and interviews. An intermediary will collect results and provide a summary or report to the experts. If an expert feels differently than the findings of the group, he or she is asked to justify his or her views so the intermediary can revise and redistribute reports.
Four analytical steps in workforce planning
- Supply model analysis – reviews an organization’s current labor supply
- Demand model analysis – estimates future business plans and objectives
- Gap analysis – compares the variances in the supply and demand models to identify skill surpluses and deficiencies
- Solution analysis – focuses on how to tackle gaps in current and future staffing needs through recruiting, training and development, contingent staffing, or outsourcing.
Steps for joining two companies (7)
- Develop a workforce integration project plan
- Conduct a HR due diligence review
- Compare benefits programs
- Compare the compensation structures
- Develop a compensation and benefits strategy for integrating the workforce. Any reduction in pay or benefits must be explained and justified relative to the strategy or economic conditions. It’s best to minimize changes and act quickly.
- Determine leadership assignments.
- Eliminate redundant functions. The best people should be retained, and the remainder should be laid off, with careful consideration given to avoid adverse impact and WARN Act violations.
