HR Expertise: People Flashcards

Question

Michael Porter’s Five Forces Model of Competition: potential entrants

Answer 1

new entrants can threaten existing companies by providing additional production capacity and shifting the market supply, resulting in less demand and price cuts.

Answer 2

1. Define the organization’s mission and objectives 2. Analyze the external environment for prospective opportunities or threats 3. Analyze the organization’s resources for internal strengths or weaknesses 4. Combine both the external and internal analysis and formulate a stable strategy 5. Establish trust in leadership and encourage involvement from all levels of the organization to implement the new strategy 6. Evaluate and monitor organizational results to preserve the competitive advantage

Answer 3

Political – changes made by the government can affect a business in the form of tariffs, tax policy, and fiscal policy Economic – changes to inflation, interest rates, and foreign exchange rates Social – cultural trends affect consumer purchases Technological – technology used in a business Legal – external laws and internal policies Environmental – climate, weather, and geographic location

Answer 4

A process in which a company figures out how it ranks among its competitors so that it can find a way to differentiate to gain a competitive advantage.

Answer 5

Makes assumptions about what the future will look like, anticipates how the future will affect the company, and creates a strategic plan to address that impact. Subjective Not meant to be a stand-alone strategic planning method

Answer 6

1. Forecast upcoming major societal, political, economic, and technological shifts 2. Choose two of the most pertinent driving forces to work with 3. Create a conceivable range of potential situations it may face based on the selected driving forces 4. Assess potential impacts of those situations and create a new business strategy that accounts for them.

Answer 7

Long-term planning tool used to evaluate a company’s products/services to determine if the company should continue investing in them. Graph: - X axis: market share - Y axis: market growth Four quadrants: - Stars: Top left, high market share/high growth - Question marks: top right, low market share/high growth - Dogs: lower right, low market share/low growth - Cash cows: lower left, high market share/low growth

Answer 8

1. SWOT Analysis 2. PESTLE Analysis 3. Industry Analysis 4. Scenario Planning 5. Growth-Share Matrix

Answer 9

1. Job competencies 2. Job specifications 3. Job description

Answer 10

A detailed list of all broad skills and traits (such as leadership ability) needed for a particular position.

Answer 11

Are details descriptions of all specific qualifications (such as experience or education) an individual must have to perform the role.

Answer 12

Detailed written breakdown of all tasks that a worker in that role must complete as the job competencies and job specifications required to be qualified for that role.

Answer 13

Requires that employers not only notify applicants that they administer background checks, but applicants must also sign a written release consenting that the employer may receive their personal information. Applicants must also have the opportunity to contest or explain adverse results before officially being turned down for employment.

Answer 14

Invitation of employment to candidate No legal commitment Includes:  Start date  Position title  Position duties  Whom to report to  Work location  Hours  Salary  Benefits or waiting periods  At-will employment statement – disclaimer of indefinite period of employment subject to termination with or without cause

Answer 15

Legally binding – will include legal language to determine the length and terms of employment Usually specified a start/end date  Sometimes there could be a shorter time period so both the employer and the employee could determine fit Restrictive covenants – protect the employer  E.g. non-compete or non-solicitation agreements Severance Agreements Dispute resolutions Change of Control

Answer 16

Past behaviors Reliable & valid data

Answer 17

aptitude test In-box test

Answer 18

An examination designed to determine if an individual has the basic knowledge to perform the tasks associated with a particular position.

Answer 19

The individual must determine the appropriate way to handle particular problems.

Answer 20

A standardized system of tests designed to gauge candidates’ knowledge, skills, abilities, and behaviors in relation to the position for which they are being considered. May include: o Interviews o Psychological tests o Simulations of scenarios typical to the role

Answer 21

construct, content, criterion

Answer 22

Assesses the specific traits shown to indicate success for a particular position. It must test for specific characteristics shown to be indicators of job performance. Is the test measuring what it claims to test?

Answer 23

Assesses the skills and knowledge necessary to perform the tasks associated with a particular position. Relates to the questions. How do the questions help to create the construct?

Answer 24

Used to predict how an individual will behave in the workplace based on written or verbal test scores Two types: 1. Concurrent validity – indicates that the individual currently possesses the desired trait or will behave in the desired fashion. * E.g. a test might be considered valid if test scores indicate the individual remains calm in stressful situations, as indicated by a stressful situation the organization places the individual into at the time of the test. 2. Predictive validity – indicates that the individual will possess the desired trait or will behave in the desired fashion at some point in the future.

Answer 25

Total days elapsed since job posted / number of hires

Answer 26

(External costs + Internal costs) / Number of hires

Answer 27

1. Authoritarian 2. Mechanistic 3. Participative 4. Learning 5. High Performance

Answer 28

Extremely focused on efficiency and productivity. * Employees product out of fear or anticipation of rewards * Characterized by micromanagement * Can be appropriate during times of uncertainty (when one strong leader takes the helm and makes all of the decisions) * Can result in low morale as employees have zero input, autonomy, or ability to be creative

Answer 29

Characterized by organization, specialization, and strong guidance from leadership. * Focused on productivity (well-oiled machine) * Decision making can be bogged down by an overly bureaucratic structure * Can result in low morale - does not foster collaboration or creativity

Answer 30

Features open communication and shared power. * Democratic decision-making (employees may have the opportunity to voice opinions, give input, or take ownership of decisions completely). * Characterized by training, collaboration, empathy, and empowerment * Morale may be high * Could be hard to get anything accomplished quickly

Answer 31

Aims to use knowledge, abilities, and innovation to adapt to an ever-changing business environment. * Characterized by creativity, initiative, experimentation, and collaboration * Lots of resources for training and development * Failure is not feared * Encourages employees to solve problems and improve workflows whenever they see an opportunity to do so.

Answer 32

Promotes goal achievement by setting clear objectives, clearly spelling out employee responsibilities, encouraging continuous development, and fostering trust. * Characterized by innovation, collaboration, communication, leadership support, and accountability * Promotes employee wellness so that workers can continue to operate at their best.

Answer 33

1. Norms – not always defined or obvious but often inferred by specific situations (e.g. punctuality and professionalism) 2. Values – Collective beliefs, ideals, and feelings of the members of an organization construct 3. Artifacts – tangible traits that portray core beliefs such as behaviors, language, and symbols 4. Assumptions – reveal the basis of how people think.

Answer 34

1. Conduct a culture audit by performing interviews to identify current values and beliefs. 2. Assess the need for change by evaluating whether the current culture is appropriate for the company’s size and mission. Determine whether it solves or creates problems for the firm. 3. Unfreeze the current culture. This often happens during times of extreme events, such as the loss of a partner, a merger, or the announcement of drastic operational or technological changes. Modifications to the culture are often most successful when the need is well communicated, and organizational members believe the changes are important. 4. Encourage support from the leadership team; they establish the code of conduct and are the culture elite of an organization 5. Implement an intervention strategy that might include frequent communications, revised training policies, revised rewards programs, restructuring or defining new roles, team-building and involvement activities, or even announcing a new slogan or mission statement. 6. Monitor and evaluate the transitional change process over an extended period of time.

Answer 35

(number of employees who were employed for entire measurement period / number of the employees at start of measurement period) x 100

Answer 36

(number of employees who left during the measurement period / average number of employees during the measurement period) x 100

Answer 37

Individuals tend to feel satisfied and report fair conditions when they perceive a state of equity.

Answer 38

1. Altering inputs, such as time effort, hard work, loyalty, commitment, and trust 2. Altering outcomes, such as salary, benefits, recognition, and achievement 3. Cognitively manipulating inputs or outcomes by rationalizing or self-justification 4. Distorting the inputs or outcomes of others 5. Changing objects of comparison 6. Leaving the field

Answer 39

Involves redesigning roles so that they have more meaning, are less monotonous, and are more challenging to employees. It provides employees with greater opportunity for autonomy, responsibility, recognition, achievement, and advancement. Makes current responsibilities more interesting.

Answer 40

Adding more duties to the role that are at the same level of difficulty as the employee’s current tasks.

Answer 41

1. Guide human resource decisions – performance data is required for supporting and justifying promotion or termination decisions. 2. Reward and motivate employees – pay rate, status, and recognition should be based on performance 3. Promote personal development – performance feedback will help employees identify strengths and improve weaknesses. 4. Identify training needs – a well-designed appraisal process establishes necessary skills and abilities for each role and identifies individuals, areas, or departments that could benefit from additional training.

Answer 42

1. Progress toward goals set at the last appraisal meeting 2. Completion of normal job duties 3. Organizational behaviors, such as cooperation, innovation, motivation, and attitude 4. Any notable achievements

Answer 43

* Self-Appraisals – Most beneficial when used for personal development and identifying training needs but less beneficial when they are used as a basis for the formal evaluation process. * Supervisor appraisals – typically required as at least one major component of the overall performance appraisal process. * 360 Degree Appraisal – considers feedback from everyone the employee interacts with (managers, peers, clients, and subordinates)

Answer 44

1. Straight ranking – involves listing all employees in order with number one being the best, number two being second best, etc. 2. Alternate ranking – entails choosing the best and worst from a list of all employees, removing these names from the list, and repeating until there are no names left. 3. Paired comparison – consists of evaluating only two employees at a time, deciding which is better, and continuing until each employee has been paired against every other employee.

Answer 45

uses a bell curve in which the majority of employees will receive an average score and a small group will receive extremely high or extremely low performance scores.

Answer 46

* Checklist method – series of statements describing a certain level of performance. The performance evaluator can then check a box next to the statement that best describes the individual’s performance in each performance area. * Rating method – rates an individual’s performance on a point scale with lower numbers representing poor performance and higher numbers representing superior performance.

Answer 47

1. Management by objectives 2. Behaviorally Anchored Rating Scales (BARS) 3. Behavior observation scales

Answer 48

Behaviorally based technique of appraisal Proactive rather than reactive. Focuses on predicting and shaping the future of the company, accomplishing results rather than simply following directions, improving competence and effectiveness, as well as increasing participation and engagement of employees.

Answer 49

Behaviorally based technique of appraisal Assign numerical values to performance based upon a given range, for example, five-star systems or scales from 1-10. The BARS method analyzes the job description and identifies the tasks that must be performed for the organization to function effectively. Once the tasks are identified, a determination is made about the specific way the individual should behave to perform each task. A series of statements that are ranked is then designed that describe how effectively the individual performed. Performance appraisers can then choose the statement that best describes the employee’s behavior. The key benefits of behaviorally anchored rating systems are that they create agreement by being less subjective and more based upon observations, whereas characteristics are more carefully considered.

Answer 50

Behaviorally based technique of appraisal Similar to BARS but with greater focus on frequency of behavior than on quality of performance (e.g. a sliding scale of always, sometimes, and never)

Answer 51

1. Critical incident method – documents each performance problem related to an employee occurring during a set period so the evaluator can discuss problems with the employee at the end. 2. Essay method – requires performance evaluators to write a short essay about each employee describing the employee’s performance during the performance period. 3. Field review method – a method in which an individual other than the employee’s direct supervisor or manager performs the appraisal and write down a series of assessments and observations about that particular employee’s performance

Answer 52

1. Personal mastery – the discipline of having an area of expertise and the ability to increase their knowledge in that area 2. Mental models – all the assumptions and beliefs affecting perception and acts based on those perceptions 3. Shared vision – the discipline of creating a culture that encourages employees to work toward a common goal. 4. Team learning – refers to the idea that a team must be able to openly exchange ideas and put in as much effort as possible to achieve its goals. 5. Systems thinking – the discipline of seeing problems as parts of broader systems instead of looking at each problem in isolation.

Answer 53

Coaching in business is a method of training in which an experienced individual provides an employee with advice to encourage his or her best possible performance and career. Typically used in performance management, can be used in a number of different ways (e.g. preparing for new assignments, improve behavior, conquer obstacles, and adapt to change). Mentoring is a career development method in which a new or less experienced employee is paired with an experienced leader for guidance.

Answer 54

1. Intern – individuals who are continuing learning under the supervision of experienced professionals 2. Independent contributors – autonomous workers whose success is based upon how well they take initiative, meet objectives, and exceed expectations. 3. Mentors – have displayed their ability to perform, supervise, and coach others. 4. Sponsors – make strategic decision while providing organizational guidance, influence, and accountability.

Answer 55

1. Exploration – describes individuals who are just beginning their careers, often between the ages of 15-24, who are still working on trade programs or courses and who may be prone to frequently changing positions while trying to explore interests and abilities against job demands. 2. Establishment – individuals (often 25-44) who are striving to create a more stable position within their chosen occupation to establish work and build a reputation. 3. Maintenance – individuals (often 45-64) who are concerned with job security and survival 4. Decline – older than 65, entering retirement

Answer 56

1. Literacy Training – basic education programs offered by companies such as a ESL training 2. Competency Training – teaching skills, abilities, and behaviors essential for executing responsibilities effectively and successful performance 3. Mentoring – when a more experienced individual teaches valuable job skills and provides encouragement or emotional support 4. Attitude change – group communications through lectures, video presentations, or similar methods to accomplish increased customer service, diversity training, ethical behavior, or harassment training.

Answer 57

1. Job-instruction training 2. E-Learning 3. Apprenticeships 4. Internships 5. Job rotation and cross training 6. Coaching and counseling

Answer 58

1. Independent study 2. Corporate universities 3. Vestibule training (similar to on-the-job training but occurs in a separate training area identical to the actual production area) 4. Lecture

Answer 59

Analysis – gather data and identify problems, needs, or discrepancies between current capacities and desired performance. Design – determine learning objectives and goals, decide course content or exercises, and plan delivery methods. Development – create training materials or purchase materials, and modify them to meet objectives. Implementation – deliver the training program tools to the target audience and observe changes. Evaluation – compare training program results of knowledge and behavior to the course objectives.

Answer 60

Reaction: measures how people react to the training, often a survey upon completion that asks for feedback or satisfaction levels on the subject, the material, the instructor, and so on. Learning: measures what objectives people have learned from the training program Behavior: measures how far the performance or behavior of people that received the training has changed and observes how they apply what has been learned to their environment. Results: analyzes noticeable effects of training, such as changes in production, efficiency, and quality.

Answer 61

Training – can be described as the more narrow acquisition of specific knowledge or skills. Most training programs try to teach students how to perform a particular activity for a specific job. Education – is broader and attempts to provide students with general knowledge that may be applied to a variety of settings.

Answer 62

Explicit knowledge: can be formalized, communicated, or found in job specifications and manuals. Tacit knowledge: is personal, based upon past experience, and is more difficult to explain to others.

Answer 63

1. Stimulus – should be easily perceived and meaningfully organized in a local or systematic way 2. Response – providing students with opportunities for practice and repetition 3. Motivation – reinforcements to facilitate extrinsic rewards, intrinsic satisfaction, and active participation 4. Feedback – performance feedback is necessary for learning, change, and knowledge of results 5. Transfer – occurs when students can apply the knowledge and skills learned to their jobs

Answer 64

Reflected as a pyramid containing six domain levels. 1. Knowledge forms the base of the pyramid and is the stage in which learners can recall previously learned facts. 2. Comprehension – where they are able to grasp the meaning of the material. 3. Application – learners can apply information to solve problems in new situations. 4. Analysis – learners are capable of understanding the context and structure of the material. 5. Synthesis – learners are capable of drawing from existing knowledge or sources and processing to form conclusions. 6. Evaluation – learners are capable of judging the value of materials.

Answer 65

1. Motivation – learners are internally motivated to learn by understanding why they need to learn 2. Self-Concept – learners want to direct their own learning 3. Adult experience – learners want to apply what they already know as they learn and use their experience to help others learn 4. Readiness – learners are willing to learn if what they learn will help them in some way 5. Orientation – learners learn so they can apply knowledge to current rather than future problems

Answer 66

1. Motivation – they are externally motivated to learn due to other’s expectations 2. Self-Concept – they want teachers, parents, and so on to guide their learning 3. Child’s experience – they learn more effectively by being taught because they do not have enough knowledge yet to apply it 4. Readiness – they are willing to learn because society tells them to learn 5. Orientation – they learn to be able to apply the information in the future

Answer 67

Monetary compensation – any tangible reward provided as payment for work  Includes salary, wages, paid sick days, paid vacation time, retirement plans, and stock options. Nonmonetary compensation – and tangible reward provided to encourage an individual to perform work  Including better assignments, employee-of-the-month awards, flexible scheduling, and special privileges.

Answer 68

Entitlement philosophy – issues rewards based on the length of time a particular employee has been with the organization (seniority) Performance-based philosophy – issues rewards for good performance

Answer 69

Competitive environment – the effect competition has on the ability to allocate resources to the total rewards program. Economic environment – the effect the economy has on the cost of labor. Labor market – the availability of skilled employees Legal environment – taxes and regulations

Answer 70

Pay levels (or bands) – roles are broken out based upon job duty and skill level and placed within a certain range of pay based on their value to the organization.  Important to recognize whether the company tends to lead, lag, or match current market rates. Broadbanding - a type of pay structure design in which an organization creates a small number of broadly defined pay grades into which all jobs are separated (e.g. general staff, management, and executives).  Organizations usually choose to use a broadbanding approach to encourage teamwork and eliminate problems arising from perceived differences in status between different pay grades. The focus is on performance rather than activities related to achieving promotions.

Answer 71

1. Nonquantitative techniques (whole job methods) – used to evaluate the skills and abilities associated with a particular position and assign it a value based on whether it requires more or less skill than other jobs within the organization. 2. Quantitative techniques (nontraditional techniques or factor-based techniques) – techniques of assigning a specific value to each factor in a series of compensable factors identified as important. The organization can then evaluate each position, determine how many compensable factors are required for the position, and can assign a value to the position by using a mathematical formula.

Answer 72

Classification method – separates positions into categories based on tasks. Each category is then listed in order of its importance and assigned pay based on its importance. Pricing method (slotting method) – assigns a value to a position equal to the value of a similar position or category that already exists. Ranking method – ranks each position from lowest to highest based on how the skills and abilities required to perform the position compare with those associated with other positions.

Answer 73

Factor comparison method – identifies a series of compensable factors and establishes a ranking system to measure how much of a particular compensable factor, such as education, is required for a particular position. Each factor ranking is assigned a specific dollar value, and the value of the position is determined by adding the total dollar value for the rank of each factor required for the position. Point factor method – assigns a point value to each factor instead of a dollar value, and the pay for the position is determined by comparing the total amount of points to a chart.

Answer 74

occurs when an employee is hired at the same or higher wage than existing employees with more experience already in that position. It can also occur when line level employees earn close to what management earns.

Answer 75

mathematical formula used to compare a specific employee’s pay with the pay at the middle of the pay range. Base salary / midpoint salary = compa-ratio.

Answer 76

calculate the amount of compensation an employee receives for conducting a specified unit of work.

Answer 77

when a worker makes different pieces at different rates and overtime pay needs to be calculated. Add the earnings from one piece to the earnings of the other piece and divide by the number of hours worked to find their “base hourly pay” and calculate overtime accordingly.

Answer 78

any compensation that is paid out at a specified future date or during retirement E.g. nonqualifying pensions, retirement plan accounts, or employee stock option plans.

Answer 79

Involve funds that are withheld and may be invested to be paid out at a later time for tax advantages and potential capital gains. Must adhere to the Employee Retirement Income Security Act and IRS limits.  E.g. 401k, 403b, 503c, Individual Retirement Accounts (IRA) or Savings Incentive Match Plans for Employees (SIMPLE).

Answer 80

employees receive their regular pay and a share of the company’s profits

Answer 81

employees receive bonuses based upon improved productivity as opposed to profits.

Answer 82

Scanlon Plans – most popular in union environments and combine gainsharing with an employee recommendation system. These plans establish a standard ration of labor costs as a percentage of revenue. Rucker Plans – employee gains are based upon production. These plans establish a ration of labor costs as a percentage of value added or the sales value of output minus the cost of materials. Improshare Plans – broken down as improved productivity through sharing, provide bonuses to employees based on the amount of time saved.

Answer 83

created by establishing a trust into which the business makes contributions of cash or stock that are tax deductible. Employees are then granted with the ability to purchase stock or allocate funds to individual employee accounts.

Answer 84

allow employees to decide what services they need from any provider; fees are paid by both the employee and the employee’s benefits plan through deductibles and co-insurance.

Answer 85

allow insurers to contract with providers of the employees choosing with lower fees and better coverage for providers within the organization; fees are paid by deductibles, co-insurance, and co-payments.

Answer 86

emphasize preventative care through fixed costs regardless of the number of visits, but primary care physicians (PCPs) must refer others, and no other providers are covered; fees are paid by deductibles, co-insurance, and co-payments.

Answer 87

similar to PPO plans with certain elements of HMO plans (PCP referrals); fees are paid by deductibles, co-insurance, and co-payments.

Answer 88

provide tax-favored accounts, such as an FSA or an HAS, to pay for medical expenses, and may allow employees to see any provider of their choosing. However, these plans carry high deductibles and may have low or no co-insurance after deductible is reached.

Answer 89

a special account in which an individual can put money in to pay for certain out-of-pocket, non-covered health care costs. FSA users don’t have to pay taxes on this money.

Answer 90

funds can be deposited by both the employee and employer. The funds added to this account are then used to pay medical expenses not covered by the high deductible health plan (HDHP), including the deductible.

Answer 91

a defined employer plan providing participants the opportunity to receive certain benefits on a pretax basis. Qualified benefits might include the following:  Medical healthcare coverage  Dental coverage  Dependent care  Short-term disability  Long-term disability  Group-term life insurance and accidental death or dismemberment

Answer 92

total compensation / total operating expense x 100

Answer 93

total benefits cost / total operating expense x 100

Answer 94

the total cost to employ someone, taking into consideration pay, benefits, and taxes

Answer 95

an audit to ensure the accuracy of the healthcare provider’s billing

HR Expertise: People Flashcards

(119 cards)