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Flashcards in SMO414 Final Deck (85):
1

what is environmental scanning?

scanning the external environment (ie competitors, regulations) and internal environment (strategy, technology culture)
identifying and anticipating problems, threats and opportunities

2

what is labour demand forecast

projecting how business needs will affect HR needs using qualitative methods and quantitative methods

3

What are examples of qualitative methods of labour demand forecast

delphi
expert

4

what are examples of quantitative methods of labour demand forecast

trend analysis
simple/multiple linear regression analysis

5

What is Delphi

send out problem to consulting experts for them to analyze and send response back to management - consultants work individually and management sees if theres a consensus

6

What is the Nominal Group Technique

group meets face to face and interact but only after individual written work has been done and idea generation written on a flip chart

7

what is labour supply and forecast

project resource available from internal and external sources

8

what is gap analysis

reconcile the forecast of labour supply and demand - surplus or shortage?

9

what is action programming

implement the recommended solution

10

what is control and evaluation

monitor the effects of the human resource planning by defining and measuring critical criteria (ie turnover costs, break even costs, recruitment costs, performance outcomes, staff shortages etc)

11

what are the steps of trend analysis?

1. determine business index that relates to the size of the workforce
2. plot the historical record (min. 5 years) of the factor to the size of the workforce
3. compute the average employee requirement ratio
4. forecast the amount of the business index in the future
5. divide the forecasted business index by the average employee requirement ratio to calculate estimated number of employees required in the future

12

what is regression analysis

presupposed a linear relationship exists between one or more independent variables which affects the dependent variables

13

what kind of things should be recorded for skills inventory?

education and training
certifications and licenses
professional associations
work experience - dates and position
performance appraisals
career asperiations
volunteer work and hobbies

14

what are the uses of skills inventory

internal placements ie promotions, reassignments
career counselling and development
training needs assessment
transfers
lay offs
demotions
creating competency profiles

15

what are replacement charts

succession planning

16

what are the uses of replacement charts?

succession planning
career planning and development
internal or external recruiting
identifies impact of internal movement on other positions

17

how to inventory and forecast external supply?

general economic conditions - ie is economy expanding or contracting
activities of competitors
unemployment rates
educational enrolments
Canadian occupational projection systems (COPS)
Alberta short term employment forecast

18

what is the Markov Model

a forecasting model that uses rates of movement between various job levels based on historic patterns

19

what are the five options of movement according to the Markov Model?

1. remains in current job
2. promotion
3. lateral transfer
4. exit
5. demotion

20

what does the markov model have great value for determining?

-number of personnel who move annually and over -specified time periods between job levels
-number of external hires required by org
-expected duration and movement patterns in jobs associated with career progression patterns
-number and percentage of starts at a particular job level who will attain future target job level by specified period

21

what are the shortage strategies

develop profile - who is a good worker and who stays
review compensation as a whole - benefits too
employee referrals
overtime
expand recruiting channel
lower standards and training
utilize internal resources
non traditional labour
telecommuting
post retirement recruiting
contract out
adjust pay and rewards

22

what are surplus strategies?

hiring freeze and attrition
reduce hours, part time, job share
voluntary severance
transfer and demotion
roll back pay and benefits
temporary layoff
permanent layoff

23

what is succession planning

process of ensuring there's a pool of qualified employees trained and available to meet the strategic objectives of the company

24

what is the importance of succession planning

baby boom retirement wave
20% of senior management and 25% of mid management positions will become vacant
but only 25% of companies have a succession plan in place

25

why is succession planning important in family business?

2/3 of family businesses don't have a succession plan in place
just handing the business down to family fails 50% of the time
3 generational arc - riches to rags in 3 generations
can you hire better than you sire

26

why insider?

motivation for employees
retention of employees
train and develop to specifications
familiar with culture and ways of doing things
shorter adaptation period
insider more familiar with staff, organizational issues
lower recruiting and learning costs

27

why outsider?

reduces internal politicking and infighting
may want new knowledge and experience
want to change culture and habits
part of turnaround strategy

28

what are the succession management steps?

1. align succession plan with strategy
2. identify competencies required
3. identify internal members who have potential
4. development of potential candidates
5. evaluation and selection

29

what are examples of developmental activities

movement through promotion
job rotations
special work assignments
formal training and development
formal education
mentoring and coaching

30

what is the 70/20/10 suggesstions

70% hands on experiences and work assignment
20% mentoring and coaching
10% formal education, seminars

31

what is the impact of relay succession

firms that used relay succession outperformed by return on sales, ROA, ratio of market to book values

32

what steps can you take to make an easier transition in succession? concerning the HR systems

job analysis
competencies
selection criteria/recruiting
training needs assessment/program development
compensation revised based on new job requriement
lay offs - who goes, severance, outplacement
evaluation

33

what steps can you take to make an easier transition in succession? concerning communication plan

identify key stakeholders
communicate new vision and strategy - there is a future
timeline - how HR plan will be implemented
communication media
train managers and supervisors how to respond
must consider employee interests

34

what is downsizing

activities undertaken to improve organizational efficiency, productivity, and competitiveness that affect the size of the firm's workforce

35

why downsize?

cost cutting due to competitive pressures or economic downturn
production process redesign/new technology
merger and acquisitions
organizational change, redesign
strategic reorientation, dropping product lines

36

what is the impact of downsizing relating to profits and productivity

less than 35% increased productivity
less than 45% increased operating profits
33% productivity declined
less than 1/3 of companies achieved productivity and profitability goals
stock price increased when layoffs due to strategic re-position but layoffs due to cost cutting didn't add any value
companies who cut by over 10%, share prices declined by 38%

37

what are the negative impacts of downsizing on employees

decline in motivation, work effort, trust
increases in fatigue, stress, resentment
retiring on the job
voluntary turnover

38

what is the impact of downsizing in a high involvement workplace (differentiator strategy)

suffer more from layoffs than firms with fewer high involvement practices
lower productivity
lower morale and motivation
high voluntary turnover
violation of psychological contract

39

what mitigates the negative effects of downsizing?

investment in high involvement practices:
training
flexible job design
incentives
information sharing
procedural justice

40

what are the key lessons associated with downsizing?`

strategic vs cost cutting
careful choice of who goes
be careful how you terminate

41

what is some criteria with deciding who should be laid off when downsizing

seniority
position or department
salary/wage level
voluntary severance
early retirement
relationships with customers
performance ratings
skills/qualifications assessment
future HR needs

42

what is the criteria funneL?

1. competencies, skills
2. qualifications for future jobs
3. performance ratings
(use seniority as a tie breaker unless collective agreement suggests otherwise)

43

what are the steps in downsizing

1. how does downsizing support/interfere with strategy
2. how will it impact on short and long term HR plans
3. determine criteria for who goes
4. develop outplacement resources and severance packages
5. don't forget support systems for survivors
6. evaluate results

44

what kind of support should you have for the survivors?

set vision for survivors
ongoing career planning and development
training for new job duties
adjust compensation and rewards
two way communication
employee surveys
employee assistance programs

45

why mergers and acquisitions?

more rapid expansion
remove competition
acquire desirable assets and human resources
exploit synergies
gain control over resources or distribution channels
lower dependency on limited markets/product lines
empire building

46

what are the types of mergers

horizontal - two companies that used to be competitors joined forces
vertical - acquiring raw materials/parts/manufacturers/distributors/retail operations
conglomerate - merger of two organizations competing in different markets

47

what are the two types of a conglomerate merger

related diversification - some relationship between products and services ie Walt Disney
unrelated diversification - all different products ie Virgin

48

bad record of mergers?

only 20% successful
60% doesn't meet organizational goals and objectives
20% complete failures

49

why do mergers fail

inadequate evaluation of target
large debt load taken on
cultural differences make it hard to integrate
management systems hard to integrate
new management doesn't understand acquired business
reduced morale after downsizing

50

what does management have a due diligence to do when merging?

cultural audit - problems and challenges of integrating both companies' cultures
HR systems audit - problems and challenges of integrating HR systems

51

what is included in a HR systems audit

employee contracts and collective agreements
pay structure and rewards
job design
work rules and policies
retirement policies and pensions
benefit packages
promotion policies
communication mechanisms and complaint procedures

52

steps in merging cultures

conduct audit
what are the similarities and differences
map out a new system that fits with shared goals and objectives
use acculturation strategies - team building, mentoring, coaching, goal setting

53

what are the steps in merging HR?

transition committee
communication plan - initial and ongoing
job analysis and competency profiles
HR planning
selection process design
severance and outplacement
training program
compensation adjusted
evaluation mechanisms

54

what is outsourcing

contractual relationship for provision of business services by an external firm
one firm pays another company to perform some work for it

55

why outsource?

reduce costs
technical expertise
specialized skills required
temporary uptick in business ie seasonal
refocus on core business activities

56

what are the core activities that you shouldn't outsource

related to business success/bottom line
create firm's competitive advantage
influence growth or rejuvenation

57

what are the non core activities that you can outsource

routine
easily standardized
easily duplicated

58

what HR functions should you outsource?

payroll, benefits, pension admin
training
recruiting
exit interviews
termination/out-placement
employee assistance programs

59

what HR functions should you keep in house

orientation
career development
performance management
final hiring decision
succession planning
change management

60

what are the effects of outsourcing

didn't achieve goals of cost cutting and focused HR on strategic competencies
instead:
hidden costs came to light
HR spent too much time managing the relationships
loss of control over quality
loss of knowledge and expertiese
harder to integrate and coordinate HR activities

61

what are the risks of outsourcing

costs exceed expectations ie extra fees
loss of control over quality or service
poor morale and performance
risk to privacy
risk to intellectual property
difficulties in coordinating activities
loss of expertise

62

how to manage outsourcing

identify needs and goals - impact on strategy
specific responsibilities/extra fees
set detailed performance standards
spell out consequences for non performance
reporting system
consider growth needs

63

why go international

expand market
economies of scale
acquire resources
synergies - more effective than apart
avoid tariff barriers

64

what are the stages of going international

1. export stage (domestic) internationalizing by exporting goods abroad to seek new markets
2. sales subsidiary stage (multi-domestic) - concentrates on development of foreign markets by selling to foreign nationals
3. foreign production stage (international) - standardizing productions around world to gain efficiency
4. multi-subsidiary stage (multi-national) - going to other countries rather than just north america

65

what is the global network stage

locate different aspects of your operations different places

66

what are the international staffing options

1. parent country national - send someone from host country to maintain corporate culture
2. host country national - recruit and hire someone from that country
3. third country national - familiar of business practices there

67

what are the different IHRM approaches

adaptive IHRM - design HR systems that are consistent with local economic/cultural/legal/political conditions
exportive IRHM - transfer home HRM systems without modification/adaptation to local environment
integrative IHRM - combine both home HRM practices and local HRM practice - best of both worlds

68

what is the criteria for staffing an international assignment

1. knowledge requirements - language and culture, business practices, laws and regulations
2. personality traits - give big personality traits - correlates with success
3. skills and abilities - KSAOCs in job description, self maintenance, impersonal. perceptual, cultural adaptability and flexilbity
4. family situation - willingness to relocated, adaptability, cultural awareness

69

what are some support mechanisms for employee going international?

pre-assignment training - language, culture
orientation
family support
career planning and development
compensation and benefits - home based approach, host based approach, region based
repatriation

70

why is there a speculated demise of HR?

hr doesn't always prove its value to the firm
many HR functions can be outsourced
technology and software programs/applications can walk managers through HR problems
HR doesn't really understand the business

71

what are the roles and responsibilities of HR

Strategic Partner:
 HR planning
 Culture and HR branding
Change Agent:
 Staffing and talent management
 Organizational design
 Performance management
 Training and development
Administrative Expert
 Compensation and benefits
 HRIS
 Legal compliance
Employee relations expert:
 Labour relations
 Safety and worker’s compensation
 Diversity and employment equity

72

what is the 5C model of HR impact

1. compliance (legal/ethics)
2. client satisfaction
3. culture management
4. cost/efficiency
5. contribution

73

who are the HR clients

employees
managers
union representation
job applicants
independent contractors
outsourcing vendors
shareholders

74

how to measure satisfaction and attitudes

informal feedback
focus groups
surveys
exit interviews

75

what should a performance management survey include

goal setting
feedback on performance
sufficiency of resources
recognition
rewards

76

employee attitudes can infuence

turnover
absenteeism
performance/quality
willingness to take on extra responsibility
willingness to contribute ideas and suggestions

77

key drivers of engagement

managing performance
work processes
resources
employer reputation
career opportunities
recognition
work tasks

78

what are the three psychological states and how do they impact employee behaviour

satisfaction - commitment, punctuality, attendance
motivation - good performance in assigned duties
organizational identification - engagement, lead, mentor, volunteer

79

how does employee engagement affect profit

high employee engagement in companies had 3x higher profit margins
2/3 of employees not fully engaged/frustrated by lack of support they received
companies with low engagement had higher turnover, higher inventory shrinkage, more accidence
companies with high engagement had higher productivity and higher profitability

80

what are efficiency measures

time ie time to fill vancy
volume ie number of employees trained
costs ie cost per hire

81

what is the Fanciscan Alliance Metrics

focuses on performance metrics:
% of performance goals met/exceeded
% of top performers paid above average salary
% of employees who move up at least 1 performance rating in the year - progression, work done by management
% of turnover in key jobs

82

what are career planning and development metrics

1. succession planning rate - number of internal candidates ready to move up / total positions
2. promotion rate - number of positions filled internally / total positions filled
3. external hire rate - number of positions filled with external hires / total positions filled

83

what is revenue per full time equivalent (FTE)

measure of organization's productivity and performance
if ratio declining - revenue declining - maybe overstaffed
if ratio increasing - eventually be understaffed

84

common HR practices of Fortune 100 best

significant resources devoted to training and development
free or low cost health care
health and wellness facilities, cafeterias etc
stock options for all employees instead of just top management
recognition of excellent performance
open book management

85

what is return on investment

(gain from investment - cost of investment) / cost of investment