SHRM People Domain

Notes from the SHRM Learning System People book

Strategy

A plan of action for accomplishing an organization's long range goals to create value

Organizational, Business Unit, and Operational

What are the three levels of strategy?

Organizational Strategy

Focuses on the future of the organization as a single unit -  a general vision of the future it seeks and its long-term goals

Business Unit Strategy

Addresses questions of how and where the organization will focus to create value

Operational Strategy

Reflects the way in which organizational and business unit strategies are translated into action at the functional level through functional strategies

Strategic Planning

The process of setting goals and designing a path toward a competitive position; helps create a brand image and set the stage for how the organization will work to achieve its strategic goals

Strategic Management

Includes the actions that leaders take to move their organizations towards the goals set in strategic planning and to create value for all stakeholders

Systems Thinking

Process for understanding how seemingly independent units within a larger entity interact with and influence one another

Environmental Scanning

Process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats and to assess how these factors affect the organization currently and how they are likely to affect the organization in the future

SWOT Analysis

Method for assessment of an organization's strategic capabilities through use of the environmental scanning process, by which internal and external factors affecting achievement of organizational goals are identified and considered

Strengths and Weaknesses

Which parts of SWOT analysis refer to the internal environment?

Opportunities and Threats

Which parts of SWOT analysis refer to the external environment?

Mission Statement

Concise outline of an organization's strategy, specifying the activities the organization intends to pursue and the course its management has charted for the future

Vision Statement

Description of what an organization hopes to attain and accomplish in the future, which guides it toward that defined direction

Organizational Values

Beliefs and principles defined by an organization to direct and govern its employees’ behavior

Value Driver

Actions, processes, or results that are needed to deliver a desired value

Balanced Scorecard

Performance management tool that depicts an organization's overall performance, as measured against goals, lagging indicators, and leading indicators

Finance, Customers, Internal Business Processes, and Learning and Growth

What KPIs are identified in a balanced scorecard?

Leading Indicator

Predictive in that action in this area can change future performance and help achieve success

Lagging Indicator

Describes effects that have already occurred and cannot be changed

Specific, Measurable, Achievable, Relevant, Time-Based, Evaluated, and Revised

SMARTER Goals

Benchmarking

Process by which an organization identifies performance gaps and sets goals for performance improvement by comparing its data, performance levels, and/or processes against those of other organizations

Strategic fit

State in which an organization’s strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities

Cost Leadership and Differentiation

What are Porter’s two basic types of competitive advantage strategies?

Cost Leadership

Aim at capturing market share within the respective industry by virtue of lowest price

Differentiation

Aim for being able to charge a higher price by offering something different or by offering the same thing in a different way from competitors in their industry or market -  or by creating the perception that a product is different through superior marketing

Strategic Alliance

Companies agree to share assets to accomplish a goal. The relationship may have varying degrees of tightness and formality. Some involve customers, partners, or competitors

Joint Venture

Two or more companies invest together in forming a new company that is jointly owned

Equity Partnership

One firm acquires partial ownership through purchase of shares. The relationship may be General or limited. Partnership agreements define such issues as leadership and division of profits and losses

Merger/Acquisition

A firm purchases the assets of the local firm outright, resulting in expanding the acquiring company's employee base and facilities. Integration of acquired companies often involves significant cultural, systems, and management challenges. Data privacy can be a big issue

Franchising

A trademark, product, or service is licensed for an initial fee and ongoing royalties. A low risk entry strategy. Control over behavior is greater

Licensing

A local firm is granted the rights to produce or sell a product. A low risk entry strategy; avoids tariffs and quotas imposed on exports. There is little control of the activities and results

Contract Manufacturing

A firm arranges for a local manufacturer to produce components of products as a means of lowering labor costs

Management Contract

Another company is brought in to manage and run the daily operations of the local business. Decisions about financing and ownership reside with the host country owners

Turnkey Operation

 An existing facility and its operations are acquired and run by the purchaser without major changes

Greenfield Operation

A company builds a new location from the ground up. This represents a major task and a commitment to completely staff and equip the new location

Brownfield Operation

A company repurposes, through expansion or redevelopment, an abandoned, closed, or underutilized industrial or commercial property

Greenfield Operation

What is the toughest growth strategy for talent acquisition?

Lean Project Management

Which alternative project management strategy focuses on eliminating waste?

Six Sigma Project Management

Which alternative project management strategy refers to a level of quality so high that very few errors occur?

Agile Project Management

Which alternative project management strategy is used when the assumptions on which a project is based are unclear or may evolve as project work proceeds?

Critical Chain Project Management

Which alternative project management strategy is used when resources cannot be increased to meet deadlines?

Kaizen

A systematic approach for business improvement, requiring that all people and processes in an organization work to continuously improve. Based on five principles 1) Know your customer, 2) Let it flow, 3) Go to Gemba, 4) Empower people, 5) Be transparent

Employment Branding

Process of positioning an organization as the “employer of choice” in the labor market

Employee Value Proposition (EVP)

Employees’ perceived value of the total rewards and tangible and intangible benefits they receive from the organization as part of employment, which drives unique and compelling organizational strategies for talent acquisition, retention, and engagement; Know why people want to work for you and why people want to stay

Job Description

Document that describes a job and its essential functions and requirements (including tasks, knowledge, skills, abilities, responsibilities, and reporting structure)

Job Specifications

Written statements of the minimum qualifications for the job incumbent

Job Analysis

Process of systematically studying a job in order to identify the activities/tasks and responsibilities it includes, the personal qualifications necessary to perform it, and the conditions under which it is performed

Sourcing

Process by which an organization generates a pool of qualified job applicants

Head Count

Number of people on an organization's payroll at a particular moment in time

Attrition

Generally refers to the loss of employees due to reasons other than firing and other employee initiated events; typically it's due to a boss

Job Enlargement

Process of broadening a job’s scope by adding different tasks to the job

Job Enrichment

Process of increasing a job's depth by adding responsibilities to the job

Job Rotation

Movement between different jobs

Employee Life Cycle (ELC)

Activities associated with an employee's tenure in an organization; typically includes recruitment, integration, development, and transition phases

Realistic Job Preview (RJP)

Tool used to provide a job applicant with honest, complete information about a job and the work environment; a clear picture of what a job will be like if the applicant is hired

Performance Management Systems

Tools, activities, and processes that an organization uses to manage, maintain, and/or improve the job performance of employees

Performance Appraisal Systems

Process of measuring and evaluating an employee’s adherence to performance standards and providing feedback to the employee

360-Degree Feedback

In some organizational cultures and environments, peers and subordinates may be asked to provide input on an individual’s performance, in addition to the direct supervisor

Push Training

Generally used for required training such as compliance related subjects; content delivered based on training department’s schedule

Pull Training

Linked to acquiring skills, abilities, knowledge, and competencies needed to better perform one's job; content is easily accessible anywhere and anytime

Learning Organization

Organization characterized by a capability to adapt to changes in environment

Systems Thinking

Process for understanding how seemingly independent units within a larger entity interact with and influence one another

Needs Analysis/Assessment

Process used to identify, articulate, and document the organization's developmental needs

Bloom’s Taxonomy

Learning objectives proceed in a hierarchical manner, starting with the lowest level. Levels include knowledge, recognition of learning content, application of learning, using learning to analyze causes or outcomes, making judgments about the value, using learning content to create new solutions

Learning Management Systems (LMS)

System that holds course content information and has the capability of tracking and managing employee course registrations, career development, and other employee development activities

Career Development

Progression through a series of employment stages characterized by relatively unique issues, themes, and tasks

Career Management

Preparing, implementing, and monitoring employees’ career paths, with a primary focus on the goals and needs of the organization

To develop leaders, engage in challenging assignments 70%, developmental relationships 20%, and course work and training 10%

70-20-10 Rule

Remuneration

Another word for compensation and benefits or total rewards

Job Evaluation

Process of determining a job's value and price for the purpose of attracting and retaining employees by comparing the job against other jobs within the organization or against similar jobs in competing organizations

Benchmarking

Process by which an organization identifies performance gaps and sets goals for performance improvement by comparing its data, performance levels, and or processes against those of other organizations

Pay Grades

Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range

Pay Ranges

Set the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade

Compa-ratio

Pay rate divided by the midpoint of the pay range

Performance-Based Pay

Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or pay for performance

Pay Compression (Salary Compression)

Occurs when there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority

Red-circle Rates

Employee pay rates above the range maximum

Green-circle Rates

 An employee's pay is below the minimum of the range

Employer bears investment risk

Who bears the risk in a defined benefit retirement plan?

Employee bears investment risk

Who bears the risk in a defined contribution retirement plan?