MNGMT 4020- SMITH Exam 1

Management Process

planning, organizing, staffing, leading, and controlling

HR Management

The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

Management

process of reaching a company's goals and objectives by working with and through people, and utilizing other organizational resources; department responsible for the management process.

Why is HRM important to all managers?

Avoid personnel mistakes,

Improve profits and performance,

Preparation for a possible rotation into or responsibility over HR,

And you wear many hats in the entrepreneurial role that deal with HR

Line and Staff Aspects of HRM

Line= managing other people, making decisions about goals and objectives, schedules, trained properly, pay and promotions, etc.

=Direct Labor

Ex: General Motors

Staff= more support, advise, counsel, procedures, etc.

=Support to the line functions

Ex: IT

Line Authority

gives managers the right to issue orders to other managers or employees.

Line authority creates a superior (order giver)-Subordinate (order receiver) relationship.

Line Manager

A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization's tasks.

Usually associated with managing departments (like sales or production) that are crucial for the company's survival.

Staff Authority

gives a manager the right to advise other managers or employees.

Creates an advisory relationship.

Staff Manager

A manager who assists and advises line managers.

Generally run departments that are advisory or supportive, like purchasing and HR Management.

Assist and advise line managers in areas like recruiting, hiring, and compensation.

Coordinative functional role

Plan for and coordinate policies, procedures, new initiatives associated with HR support and services throughout the company.

New Approaches for organizing HR:

Functional Structure, Transactional HR, Corporate HR, Embedded (business partner) HR, Centers of Expertise, New/Emerging "Distributive" HR

Functional HR

HR structural alternative in which headquarters HR specialists craft policies and HR generalists located within divisions or other locales implement the policies, adapt them as needed, and interact with employees.

Transactional HR

High volume activity, weekly. Organize department with large transactions(volume/activity) and small transactions(volume).

Time off-high volume

Pay- high transaction

Benefits/claims processing- high volume

Corporate HR

These assist top management in top-level issues such as developing the personnel aspects of the company's long-term strategic plan.

working on the future plans of the company, how is each department doing? What can we improve on in the next 2-10yrs?

Embedded (business partner)

Aligned to a business unit. Key decision makers.

Assigned to functional departments like sales and production. They provide the employee selection and other assistance the departments need.

Centers of Expertise

Are basically specialized HR consulting firms within the company. For example, one might provide specialized advice in areas such as organizational change to all the company's various units.

New/Emerging Distributive HR

Push some activity out to other departments/people.

Examples of things that might be pushed out:

Training in a particular department

EMPLOYEE PERFORMANCEfstrategy

trends shaping HRM and trends shaping the nature of work

HRM: Digital and social media tools are changing how people look for jobs, and how companies recruit, retain, pay, and train employees.

Nature of work: workforce demographic trends, trends in jobs people do, technological trends, and globalization and economic trends.

Workforce and Demographic Trends

(recall the aging population, for instance) make finding, hiring, and motivating employees more challenging, while at the same time more high-tech jobs means employers must excel at managing employees' knowledge, skills, and expertise (human capital). Furthermore, as we've seen, technological trends including mobile and social media are changing how employers recruit, select, train, appraise, and motivate employees. In a sense, a new human resource management is emerging, one built on six main components or pillars.

Human Resource Management

The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns

Line (function and authority)

Gives managers the right to issue orders to other managers or employees

-creates a superior (order giver)-Subordinate (order receiver) relationship

Staff (function and authority)

gives a manager the right to advise other managers or employees.

Creates an advisory relationship.

Globalization

refers to companies extending their sales, ownership, and/or manufacturing to new markets abroad.

talent Management

the goal oriented and integrated process for planning, recruiting, developing, managing and compensating employees.

Strategic HRM

formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Strategic Management Process

(1) ask, "What business are we in now?"; (2) evaluate the firm's internal and external strengths, weaknesses, opportunities, and threats; (3) formulate a new business direction; (4) decide on strategic goals; and (5) choose specific strategies or courses of action. Steps (6) and (7) are to implement and then evaluate the strategic plan.

Different types of Strategies

Corporate-Level Strategic planning, Business Unit (or Competitive) strategic planning, and functional (or departmental) strategic planning

corporate-level strategic planning

Answers the question: What business will we be in?

The corporate level strategy identifies the portfolio of business that, in total, comprise the company and how these businesses relate to each other.

Concentration (Ex: WD-40)

Diversification (Ex: GE, Pepsi)

Vertical Integration (Ex:

Consolidation (Ex:

Geographic Expansion (Ex: Pepsi, Target)

business unit (or competitive) strategic planning

Answers the question: On what basis to compete

A strategy that identifies how to build and strengthen the business' long-term competitive position in the market place.

Cost Leadership (Ex: Aldi)

Differentiation (Ex: Volvo, Papa Johns)

Focus(ers)-niche market (Ex: Ferrari)

Functional (or Departmental) Strategic Planning

A strategy that identifies the broad activities that each department will pursue in order to help the business accomplish its competitive goals.

Ex: P&G to make Olay skincare products a top-tier brand

Whats the difference between a strategy, a vision, and a mission?

Strategy: a course of action the company can pursue to achieve its strategic aims.

Vision Statement:

Where we want to be (not always clear)

Mission Statement:

How are we going to get there?

How will we achieve the vision

strategy

a course of action the company can pursue to achieve its strategic aims.

Cite an example of where "human capital" is a competitive advantage

For example, here is how a former vice president of human resources at the Toyota Motor Manufacturing facility in Georgetown, Kentucky, described the importance of human capital as a competitive advantage:

"People are behind our success. Machines don't have new ideas, solve problems, or grasp opportunities. Only people who are involved in thinking can make a difference. . . . Every auto plant in the United States has basically the same machinery. But how people are utilized and involved varies widely from one company to another. The workforce gives any company its true competitive edge."

Managers typically adopt one or more of three standard competitive strategies—cost leadership, differentiation, or focus—to achieve competitive advantage.

List examples of organizational metrics and HR metrics

Organizational Data

Revenue

Revenue per FTE

Net Income Before Taxes

Net Income Before Taxes per FTE

Positions Included Within the Organization's Succession Plan

HR Department Data

Total HR Staff

HR-to-Employee Ratio

Percentage of HR Staff in Supervisory Roles

Percentage of HR Staff in Professional/Technical Roles

Percentage of HR Staff in Administrative Support Roles

Reporting Structure for the Head of HR

Types of HR Positions Organizations Expect to Hire in this year

Benchmarking

a process by which a company compares its performance with that of high-performing organizations

Strategic Planning Process

the establishment of an organization's major goals and objectives and the allocation of resources to achieve them

Strategic Management

a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

vision

an encompassing explanation of why the organization exists and where it's trying to head

Where we want to be (not always clear)

mission

How are we going to get there?

How will we achieve the vision

Values

Beliefs, what we stand for. Not going to change anytime soon.

Human Resource Metrics

The quantitative gauge of a HRM activity, such as employee turnover, hours of training per employee, or qualified applicants per position

Strategy

a course of action the company can pursue to achieve its strategic aims.

strategic plan

is the company's overall plan for how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.

Strategy maps

A strategic planning tool that shows the "big picture" of how each department's performance contributes to achieving the company's overall strategic goals.

Strategic HR management

means formulating HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic goals.

HR Audit

an analysis of the completeness, efficiency, and effectiveness of the organization's HR functions, including its HR policies, practices, processes, and relevant metrics.

HR Scorecard

A process for assigning financial and non-financial goals or metrics to the human resource management-related chain of activities required for achieving the company's strategic aims and for monitoring results.

Digital Dashboard

Presents the manager with desktop graphs and charts, and shows a computerized picture of where the company stands on all those metrics from the HR scorecard process.

Talent Management process

Decide the positions to fill (analysis, planning, forecasting),

Build a pool of qualified applicants,

Have an effective application and screening process,

Use effective selection tools,

Decide whom to hire,

Orient, train, and develop employees,

Manage performance (appraise employees),

Reward and compensate; motivate workers

The basics of job analysis and how used

The study of jobs that is necessary for identifying successful job candidates and leading to succesful job performance.

Used for:

Writing job descriptions

Writing job specifications

Job Re-design and the types

Movement from highly specialized and repetitive work to broader skill sets and tasks, and task variety. Experts typically suggest three ways to redesign specialized jobs to make them more challenging:

-Job enlargement

-Job Rotation

-Job enrichment

the methods for collecting job analysis information

Interviews

Questionnaires

Observation

Activity and Time Log

Quantitative Techniques

-Position analysis questionnaire (PAQ)

-Internet-based job analysis

competency-based job descriptions

Job analysis

The procedure through which you determine the duties of the position and the characteristics of the people to hire for them. It provides a foundation for most personnel decisions.

Job descriptions

A list of a job's duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities- one product of a job analysis.

Job specifications

A list of a job's "human requirements," that is, the requisite education, skills, personality, and so on- another product of a job analysis.

job re-design

Movement from highly specialized and repetitive work to broader skill sets and tasks, and task variety

Job Rotation

Move from one job to another, e.g. accounting, tax, audit, etc.

Organizational Chart

a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication

Process Chart

a workflow chart that shows the flow of inputs to and outputs from a particular job

Job Enlargement

same level, but more tasks, (horizontal tasks)

Job Enrichment

Vertical growth in skills, more rewarding tasks.

Contributes to their career

Workflow Analysis

is a detailed study of the flow of work from job to job in one identifiable work process (such as processing a mortgage application)

Position Analysis Questionnaire (PAQ)

a questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs

Business Process Reengineering (BPR)

A radical redesign of a business process that improves its efficiency and effectiveness, often by beginning with a "clean sheet" (from scratch).

Standard Occupational Classifications (SOC)

is used by Federal statistical agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data. - 821 detailed occupations according to their occupational definition - To facilitate classification, detailed occupations are combined to form: - broad occupations (job categories) - minor groups - major groups.

O*NET (Occupational Information Network)

Is home to the nation's primary source of occupational information.