MODULE 1 - Strategic HR Management Flashcards Preview

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Flashcards in MODULE 1 - Strategic HR Management Deck (84):
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Acquisition

Market entry strategy that results in expansion of company's employee base and facilities.

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Assignees

Employees who work outside their home countries.

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Authority

Relates to the scope of responsibilities that define the area in which a manager or supervisor is empowered to make decisions.

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Balanced scorecard

Measurement tool to evaluate organizational strategies; looks at financial, customer, operations, and learning and growth measures.

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Benchmarks

Best practices extracted from the activities and achievements of organizations throughout a sector.

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Brownfield operation

Market entry strategy in which a company repurposes, through expansion or redevelopment, an abandoned, closed, or underutilized industrial or commercial property.

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Center of excellence

HR organizational alternative established as an independent department that provides services within a focused area to internal clients.

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Chain of command

Refers to a line of authority within an organization.

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Civil law

Legal system based on written codes (laws, rules, or regulations).

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Common law

Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.

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Contract manufacturing

Market entry strategy that involves contracting for the manufacture of components or products as a means of lowering labor costs.

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Corporate social responsibility (CSR)

Recognition of the impact a corporation has on the lives of its stakeholders (including shareholders, employees, communities, customers, and suppliers) and the environment; can include corporate governance, corporate philanthropy, sustainability, and employee rights and workplace safety.

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Cosourcing

Arrangement in which an enterprise and a vendor share different tasks within a larger complex, often strategic responsibility.

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Culture

Shared system of values, beliefs, and attitudes.

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Data mining

Process of searching through large databases to identify relationships and trends.

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Dedicated HR

HR organizational alternative that allows businesses with different strategies in multiple units to apply HR expertise to each unit's specific strategic needs.

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Dilemma reconciliation

Process of charting a course through cultural differences.

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Due diligence

Process of investigating and evaluating the details of a business decision that may affect its outcome before mergers, acquisitions, partnerships, alliances, and outsourcing.

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Due process

Agreed procedures through which a government's written and publicly disclosed laws are enforced.

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Environmental scan

Survey of external environment to identify potential opportunities and threats.

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Equity partnership

Market entry strategy that involves acquiring partial ownership through purchase of shares; maybe general (sharing proportionally in control, profits, and liabilities) or limited (no managerial authority, liability limited to investment).

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Ethnocentrism

Approach to managing operations in which headquarters maintains tight control over international operations by staffing key positions and subsidiaries with headquarters personnel.

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Extraterritorial laws

Laws that extends certain legal requirements of a home country to the activities of its citizens traveling abroad and it's entities (for example, corporations and parentheses operating in host countries.

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Extraterritoriality

(1) state of being beyond the jurisdiction of local laws; (2) extension of the power of the country's laws over its citizens outside the country's sovereign national boundaries.

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Foreign corrupt practices act (FCPA), US

US law that prohibits bribery of foreign government officials by US persons and firms, including their non-US subsidiaries and third-party agents (for example, supply-chain partners).

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Foreign direct investment (FDI)

Investment of foreign assets into domestic structures, equipment, and organizations.

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Formalization

Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.

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Forum shopping

Situation in which a plane to bring suit in a jurisdiction more likely to be sympathetic to his or her claims; also known as jurisdiction shopping.

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Franchising

Market entry strategy in which a trademark, product, or service is licensed for an initial fee and ongoing royalties.

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Front-back structure

Organizational structure that divides an organization into "front" functions, which focus on customers or market groups, and "back" functions, which design and develop products and services.

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Functional HR

HR organizational alternative in which headquarters HR is staffed with specialists to craft policies; HR generalist may be located within divisions or other locales to implement these policies, adapt them as needed, and interact with employees.

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Functional structure

Organizational structure in which departments are defined by the services they contribute to the organization's overall mission, such as marketing and sales, operations, and HR.

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Geocentrism

Approach to managing operations in which management talent can come from any location and the enterprise.

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Geographic structure

Organizational structure in which geographic regions to find organizational chart.

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Global integration (GI)

Strategy that emphasizes consistency of approach, standardization of processes, and the common corporate culture across global operations.

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Global organization

Type of organization that views the world as a single, global market and offers global products that have little or no national variation or that have been designed with customizable elements.

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Globalization

Growing interconnectedness and interdependency of countries, people, and companies

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Glocalization

Characteristic of an organization with a strong global image but an equally strong local identity.

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Governance

Rules and processes and organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct.

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Greenfield operation

Market entry strategy in which a company builds a new location from the ground up.

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High-context culture

Culture that is characterized by complex networks of relationships, which are as important as work and often blur the line between business and social lives; rules are implicit and often applied flexibly.

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Hybrid structure

Organizational structure that mixes elements of the functional, products, and geographic structures.

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Insourcing

Transferring a previously outsourced function back in-house.

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International Emergency Economic Powers Act (IEEPA), US

US law that clarifies and restricts executive powers to block international transactions and freeze for the assets.

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International organization

Type of organization that is beginning to export products or services to foreign countries; may open production facilities or service centers, but products/services, processes, and strategies are developed in the home country.

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Joint venture

Market entry strategy that is the product of an agreement between two or more parties to create a new economic entity to produce a product or service together; all parties contribute equity and share in revenues, expenses, and control.

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Jurisdiction

Authority of a legal body to banister justice within a certain geographical territory or subject matter.

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Jurisdiction shopping

Situation in which a plaintiff bring suit and a jurisdiction more likely to be sympathetic to his or her claims; also known as forum shopping.

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Licensing

Market entry strategy in which a firm in the host country is granted the rights to produce or sell a product.

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Line units

Workgroups that conduct the major business of an organization, such as the production or marketing functions.

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Local responsiveness (LR)

Strategy that emphasizes adapting to the needs of local market; allow subsidiaries to develop products, structures, and systems.

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Low-context culture

Culture in which relationships tend to have less history; individuals know each other less well and don't share a common database of experience, so communication must be very explicit.

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Management contract

Market entry strategy in which a foreign company is brought into manage and run the daily operations of the business; decisions about financing and ownership reside with the host-country owners.

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Matrix structure

Organizational structure that has ties to both products and geographic divisions and attempts to balance local needs with global efficiencies and economies of scale; employee participating in the project may have two bosses: one from the product side and one from the geographic side.

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Mission statement

Concise expression of the essential purpose and value a company provides.

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Multi-domestic organization

Type of organization that is a decentralized portfolio of subsidiaries; goals and strategies are developed locally because of competitive demand, and knowledge is shared on a local rather than global level.

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Offshoring

When a company relocates processes or production to a lower-cost, international location in the form of subsidiaries or third-party affiliates.

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Open sourcing

Way of eliciting innovative ideas from non-employees or contractors; term derives from the software development realm, in which certain ideas and tools are freely shared in the programming community; practice has now been applied to product and service development.

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Organizational structure

Way in which an organization arranges its lines of authority and communication; the way its component parts are differentiated and linked.

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Outsourcing

When a company contract with the third-party vendor for the supply of products, services, or component parts.

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Polycentrism

Approach to managing operations in which host-country nationals usually staff and manage the local subsidiary; these employees do not usually get promoted to headquarters positions.

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Product structure

Organizational structure in which functional departments are grouped under major product divisions.

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Prosecutorial Remedies and Other Tools to End the Exploitation of Children Today (PROTECT) Act, US

US law that authorizes fines and/or imprisonment for US citizens or residents who commit sexual offenses against minors in foreign countries abroad; applies to liaison with child prostitutes and prohibits possession and distribution of child pornography.

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Regiocentrism

Regional approach to managing operations; communication and coordination are high within the region but not as high between the region and headquarters.

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Rule of law

Concept that stipulates that no individual is beyond the reach of the law and that government exercises its authority only in accordance with written and publicly disclosed laws that are enforced through agreed procedures.

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Sarbane-Oxley (SOX) Act, US

US law that covers issues such as responsibility of boards and senior management to provide accurate and complete financial reports and conflict of interest by auditors and stock analysts; requires administrators of defined contribution plans to provide notice of covered blackout periods and provides whistleblower protection for employees.

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Shared services HR

HR organizational alternative in which each country or unit, rather than having to develop its own expertise in every area, can supplement its resources by selecting what it needs from a menu of shared services.

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Sharia

Body of Islamic religious law; affects a broad spectrum of behaviors: religious, commercial, and manners and morals.

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Social media

Web-based tools and technologies used to share information and turn communication into interactive dialogue with internal or external audiences.

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Span of control

Refers to the number of individuals who report to a supervisor.

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Staff units

Work groups that assist an organization's line units by performing specialized services such as accounting or HR.

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Stakeholder concept

Theory that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities.

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Strategic alliance

Market entry strategy that involves a number of companies loosely are tightly joint for a variety of purposes, including manufacturing, marketing, or sale; companies will collaborate and contribute resources (but not equity) toward achieving a defined goal.

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Strategic planning

Process of positioning the company for the future; involves four stages: formulation, development, implementation, and evaluation.

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Strategy

Plan of action for accomplishing a goal or set of goals and objectives; details separate activities (tactics) that must be coordinated over time.

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Supply chain management (SCM)

Process of planning, implementing, and controlling operations, from acquisition of raw materials to customer delivery and support.

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Sustainability

Practices that balance economic, social, and environmental interests to secure the interests of present and future generations.

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SWOT analysis

Type of analysis used to discover distinctive competencies an organization possesses that provide strategic advantage and identify potential problem areas that must be addressed; looks at strengths, weaknesses, opportunities, and threats.

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Transnational corporation (TNC)

Type of organization in which production or service processes become more globally dispersed and interconnected; strategies developed globally, and innovation and best practices are freely exchange among countries.

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Turnkey operation

Market entry strategy in which a company acquires and operates an existing facility without making major changes.

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Value

Represents how well an organization has been able to accomplish its strategic goals.

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Value chain

Process by which an organization creates the product or service that offers to the customer.

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Values statement

Statement that describes what an organization believes in and how it will behave; provides a "moral compass" for the organization's members.

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Vision statement

Statement that describes the organization as it would appear in the future if it is successful and its mission; purpose is to inspire and motivate.