ch.2 How Human Resources Fits into an Organization – 702

30 vocabulary flashcards summarizing key terms and concepts from Chapter 2: How Human Resources Fits into an Organization.

Line Department

An organizational unit that creates the product or service and directly generates revenue.

Staff Department

A unit that facilitates or supports line departments; rarely generates revenue itself.

Chain of Command

The formal line of authority that extends from the lowest employee up to the CEO.

HR Line Authority

Authority limited to directing and supervising only employees within the HR department.

HR’s Reason for Existing

To serve the organization by providing advice, guidance, assistance, and other people-related services.

Traditional HR Models

Historic approaches to HR—clerical, counseling, industrial relations, control, and consulting—most of which are reactive.

Clerical Model

HR stereotype focused on paperwork, record keeping, tracking statistics, and administering benefits.

Counseling Model

HR acts as employee advocate and manager resource, resolving disputes while stressing privacy, training, and development.

Industrial Relations Model

Union-oriented HR where activities are contract-driven, emphasizing grievances and arbitration with little flexibility.

Control Model

Uncommon model in which HR holds substantial power; many managerial decisions require HR clearance, creating rigidity.

Consulting Model

HR serves as on-demand expert resource in large organizations; services are delivered reactively where needs are identified.

Alternative HR Models

Late-1980s frameworks—alternative clerical, legal, finance, management, humanism, and behavioral science—chosen to match mission.

Alternative Clerical Model

HR concentrates on data, records, compliance, and supplying a steady labor pool; viewed as passive and weak.

Legal Model (HR)

Emphasizes controlling human-resource costs, especially indirect compensation; risks putting finances above employee relations.

Management Model (HR)

Decentralizes HR tasks to line managers, risking inconsistent HR practices and weak strategic involvement.

Humanistic Model

Focuses on human values, individual development, and enhancing employees’ work lives to improve organizational effectiveness.

Behavioral Science Model

Bases HR activities on disciplines like psychology and sociology; used for appraisals, incentives, surveys, and development.

HR Generalist

An HR professional who handles a broad range of HR functions, common in smaller organizations.

HR Specialist

An HR professional with deep expertise in a specific area such as benefits, training, or labor relations.

CEO Attitude Toward HR

The CEO’s view of HR sets its organizational standing, influence, and the respect it receives.

Expectations of CEOs for HR

Typical duties include recruitment, compensation, records, advice on personnel issues, and labor-relations monitoring.

HR Staffing Implications

HR headcount and expertise mirror CEO expectations and expanding legal requirements.

Technological Change (HR)

Advances that alter work processes, creating employee stress and requiring HR adaptation.

Financial Change (HR)

Budget pressures or payment reforms that affect staffing and benefits, impacting HR policies.

Social Change (HR)

Shifts in workforce demographics or norms that influence HR programs and employee expectations.

HR Outsourcing

The practice of contracting external providers to perform some or all HR functions.

HR Influence vs. Authority

HR typically advises and recommends rather than commands, relying on influence outside its department.

Staff vs. Line Revenue Impact

Line departments generate income, while staff departments like HR support operations and seldom earn revenue directly.

HR Reporting Relationship

HR ideally reports to the CEO (rather than COO) to preserve independence and limit conflicts.

Organizational Friction (HR)

Tension that can arise because HR influences employees without having direct authority over them.