Key Concepts in Strategic Human Resource Management

bankruptcy

A legal status of a person or entity that cannot repay the debts it owes to creditors.

business strategy

A plan to achieve competitive advantage and meet business goals.

capabilities

The skills and abilities that an organization possesses.

competitive advantage

An attribute that allows an organization to outperform its competitors.

core competencies

Unique strengths that provide a competitive edge.

corporate strategy

The overall plan for managing a portfolio of businesses.

divestiture

The process of selling off a subsidiary or business unit.

dynamic capabilities

The ability of an organization to adapt and renew its competencies.

emergent strategy

A strategy that develops over time in response to unexpected opportunities and challenges.

intended strategy

The planned strategy that an organization aims to implement.

liquidation

The process of closing a business and selling its assets.

merger

The combination of two companies into one.

mission statement

A formal summary of the aims and values of a company.

procedures

Established methods for carrying out tasks.

program

A planned series of events or activities.

realized strategy

The actual strategy that is implemented and followed.

strategy

A plan of action designed to achieve a long-term or overall aim.

strategy implementation

The process of executing a strategy.

turnaround strategy

A plan to reverse a company's decline and restore profitability.

value proposition

The promise of value to be delivered to customers.

values

Core principles that guide an organization's actions.

vision statement

An aspirational description of what an organization aims to achieve in the future.

human capital

The economic value of an employee's skill set.

strategic HRM

Aligning human resource management with strategic goals.

competitive intelligence

The gathering of information about competitors to inform business strategy.

demographics

Statistical data relating to the population and particular groups within it.

environmental scanning

The process of gathering information about external factors that could impact an organization.

stakeholders

Individuals or groups that have an interest in the outcome of a project or business.

attrition

The reduction in the workforce through voluntary resignations.

contingency plans

Plans devised for unexpected events.

demand forecasting

The process of estimating future customer demand.

designated groups

Specific groups identified for special consideration in employment.

envelope

A method used to group and analyze data.

firm-specific human capital

Skills and knowledge that are valuable to a specific firm.

generic human capital

Skills and knowledge that are transferable across firms.

HR forecasting

The process of predicting future human resource needs.

HR gap

The difference between current HR capacity and future HR needs.

HR surplus

An excess of human resources compared to demand.

human capital flow

The movement of human capital in and out of an organization.

human capital stock

The total amount of human capital available in an organization.

human resources demand

The number of employees needed to meet organizational goals.

human resources supply

The availability of qualified candidates for employment.

job sharing

A work arrangement where two or more employees share the responsibilities of one job.

KSAOs

Knowledge, Skills, Abilities, and Other characteristics required for a job.

prediction

A statement about what will happen in the future based on current data.

projection

An estimate of future trends based on historical data.

scenarios

Hypothetical situations used for planning and analysis.

supply forecasting

The process of estimating future availability of human resources.

Delphi technique

A method for reaching a consensus among experts through a series of questionnaires.

HR budgets

Financial plans for human resource expenditures.

nominal group technique (NGT)

A structured method for group brainstorming.

ratio analysis

A quantitative method for comparing financial data.

regression analysis

A statistical method for estimating the relationships among variables.

scenario planning

A strategic planning method used to make flexible long-term plans.

simulation

The imitation of a real-world process or system over time.

staffing table

A tool used to visualize the staffing needs of an organization.

structural equation modelling (SEM)

A statistical technique that allows for the analysis of complex relationships.

trend analysis

The practice of collecting information and attempting to spot a pattern.

bullwhip effect

A phenomenon where small changes in demand cause larger fluctuations in supply chain.

employee segmentation

The process of dividing employees into groups for analysis.

external supply

The availability of candidates from outside the organization.

internal supply

The availability of candidates from within the organization.

linear programming

A mathematical method for determining a way to achieve the best outcome.

management inventory

A comprehensive assessment of management resources.

Markov model

A statistical model that predicts future states based on current states.

mass customization of HR

Tailoring HR practices to meet the needs of individual employees.

movement analysis

The study of employee movement within an organization.

skills gap

The difference between the skills required for a job and those possessed by employees.

skills inventory

A database of employee skills and qualifications.

transitional probability

The likelihood of moving from one state to another in a Markov model.

vacancy, renewal, or sequencing model

A framework for understanding employee turnover and replacement.

job rotations

The practice of moving employees between different jobs to enhance skills.

mentors

Experienced individuals who provide guidance and support to less experienced employees.

promotion

The advancement of an employee to a higher position.

replacement planning

The process of identifying and developing internal personnel to fill key positions.

succession management

The process of ensuring that there are qualified employees ready to fill key positions.

distributive justice

The perceived fairness of the distribution of outcomes or resources.

downsizing

The process of reducing the number of employees in an organization.

downsizing strategy

A plan to reduce workforce size while maintaining organizational effectiveness.

inplacement

The process of placing employees in new roles within the organization.

interactional justice

The perceived fairness of the interpersonal treatment received during the implementation of procedures.

outplacement

Support services provided to employees who are leaving the organization.