SHRM CP Functional Areas

Functional Area 1: HR Strategy - developing, implementing, managing and evaluating the strategic direction to achieve organizational success and create value

How an Organization creates Value

  • Value Chain (Michael Porter)- maximize value for the least possible cost - Primary activities create the majority of the value for customers; secondary activities provide services to the primary functions

  • Freeman Stakeholder Concept - many stakeholders like Government, Community, Media, etc.

The Strategy Process (last 3 steps are for SHRM-SCP only)

  • Formulation of the Strategy

  • Development of the STrategy

  • Implmentation

  • Evaluation

Formulation

  • Gathering data

  • PESTLE analysis - political, economic, social, technological, legal, environmental

  • SWOT analysis - strengths, weaknesses, opportunities and threats

  • Industry analysis

    • Lifecycle of a business

      • Introduction

      • Growth

      • Maturity

      • Decline

  • Porter’s Five Forces

    • Threat of new entrants

    • Threat of substitutes (knock offs)

    • Bargaining power of customers

    • Bargaining power of suppliers

    • Industry rivalry

  • Growth Share Matrix (Boston Box)

    • Market Growth (x axis), Market Share (y axis)

  • GE-McKinsey Nine Box Matrix

    • The attractiveness of the industry vs the competitive strength of the business unit

  • Define the Mission (reason of existence), Vision (looks forward, aspirational) and Values (core principles)

  • Setting Goals

    • SMARTER - Specific, Measurable, Attainable, Realistic, Timed, Evaluated, Revised

Developing Strategy - strategy is HOW we are going to get things done

Functional Area 2: Talent Acquisition- identifying, attracting, and building a workforce that meets the needs of the organization

Social Media is the primary source of job candidates

Employee Value Proposition (EVP) - the unique set of benefits that an employee receives in return for the skills, capabilities, and experience they bring to a company

Criteria for Selecting and Evaluating Selection Methods - for Assessing Job Candidates

  • Validity - the extent to which the assessment can accurately predict the job behavior (EEOC requires this)

  • Adverse impact - the extent protected groups score lower than majority groups

  • Cost

  • Applicant reactions - the extent applicants respond positively rather than negatively

Job Selection - Decision Process

  • Summarize Information

  • ID and rank candidates

  • Collect additional information

  • Make an offer

Functional Area 3: Employee Engagement and Retention - retaining talent, solidifying and improving the relationship between employees and the organization, creating a thriving and energized workforce and developing effective strategies to address appropriate performance expectations

Understanding Employee Engagement

  • Trait Engagement - personality based elements

  • Stage Engagement - Influence of the workplace

  • Behavioral Engagement - Individual effort creates satisfaction

Organizational Culture in Engagement

  • Culture is a system of shared assumptions, values and beliefs that govern how people behave in organizations

  • 4 drivers of engagement

    • The work itself

    • Stability and confidence in leadership

    • Rewards and recognition

    • Flow of communication

  • Leadership Practices that support employee performance

    • Transformational leadership

    • Authentic leadership

    • Supportive leadership

Using Motivation Theories to Increase Engagement

  • Maslow’s Hierarchy of Needs (Physiological, Safety, Belonging and love, Esteem, Self Actualization)

  • Herzberg’s Motivation-Hygiene Theory - 2 categories of needs - hygiene /extrinsic and motivational/intrinsic

  • Theory X, Y, and Z

    • X - authoritative management style

    • Y - participative management style

    • Z- stable employment, high productivity and high employee morale and satisfaction (job for life), Japanese management style

  • Skinner’s Behavioral Reinforcement Theory

    • Positive reinforcement

    • Negative reinforcement

    • Punishment

    • Extinction - no response

  • Intrinsic motivation - behavior driven by internal rewards

Performance Management

  • Systematic process that helps improve organizational effectiveness by providing feedback on performance results and improvement needs

  • Methods for rating performance

    • Narrative - time consuming but can be the most meaningful

    • Management by objectives (MBO)

    • Behaviorally anchored ratings (BARS)

    • Category rating scales (1-5)

      • Graphic

      • Checklist

      • Forced Choice

    • Comparative rankings with others

Functional Area 4: Learning and Development - enhance the Knowledge, Skills, Abilities and Other Characteristics (KSAOs) and competencies of the workforce

Adult Learning

  • Self concept

  • Experience

  • Readiness to learn

  • Orientation to learning (problem focused)

  • Motivation to learn

Learning styles - auditory, visual, kinesthetic

Active Learning and Retention

  • Lecture - 5 percent retention

  • Reading

  • A/V

  • Demonstration

  • Discussion

  • Practice

  • Teaching Others (90%)

Obstacles to Learning

  • Situational

  • Institutional

  • Dispositional

Learning curves take into account the person’s motivation, prior knowledge, the specific knowledge to be learned and the persons aptitude and attitude

Training Design and Development

  • ADDIE - Analyze, Design, Develop, Implement and Evaluate

Evaluating Training Programs - Kirkpatrick’s Four Levels

  • Reaction

  • Learning

  • Behavior

  • Results

HR Roles in Career Development

  • Coach

  • Appraiser

  • Advisor

  • Referral agent

Functional Area 5: Total Rewards - compensation systems and benefit packages

Total Rewards includes

  • Compensation

  • Benefits

  • Work-Life effectiveness

  • Recognition

  • Performance Management

  • Talent Development

Total Rewards Strategy

  • Assessment- surveys

  • Design

  • Implementation

  • Evaluation

Organization approaches to total rewards

  • Entitlement Oriented - fairness/family oriented

  • Contribution Oriented - performance based

Objectives to total rewards

  • Pay Equity - equal pay for different but equivalent work

  • Internal Equity - performance fairly determines pay OR relative difficulty results in appropriate pay differences in pay rates between jobs (skill, effort, responsibility and working conditions)

  • External Equity - comparisons with other competitive pay structures

Pay strategies

  • Lag market - pay less

  • Match Market - stay current

  • Lead Market - pay more

  • Lead-lag Market - depends on value to org

Global Staffing

  • Ethnocentric - tight control

  • Polycentric - subsidiary treated as own entity

  • Regiocentric - operations managed regionally

  • Geocentric - single international enterprise with global strategic plan

Must Address/Consider

  • PESTLE factors

  • Employee lifecycle

Compensation Systems

  • Single or Flat Rate - Stipend

  • Time Based Step Rate - pay increases on a predetermined schedule

  • Performance Based Merit System - more popular pay method in US

  • Person Based - capabilities rather than performance

Organization

Functional Area 6: Structure of the HR Function - people, processes, theories and activities involved in the delivery of HR related services that create and drive organizational effectiveness

Every organization’s basic business functions

  • Marking and sales

  • Operations

  • Information technology

  • Finance and accounting

Four approaches to budgeting

  • Zero-based

  • Incremental

  • Formula

  • Activity based - using cost driver data

Designing Your Organizational Structure

  • Departmental - functional, divisional or matrix

  • Chain of Command

  • Span of Control (flat organization)

  • Work Specialization (vs. rotation of jobs)

  • Formalization (rigid or loose rules)

  • Centralized or Decentralized decision-making authority

Functional - grouping based on the type of work you do

Divisional - groupings based on the product, service or geographic area

Matrix - 2 direct supervisors

RACI Matrix - Responsible, Accountable, Consulted, Informed - used to better define roles

Flat organization - workers are skilled and require little supervision

Measuring HR Value

  • KPI’s - key performance indicators are used to measure value

  • Balanced scorecard (CLIF)

    • Customers

    • Learning and growth

    • Internal processes

    • Financial

Functional Area 7: Organizational Effectiveness and Development (OED) - concerns the overall structure and functionality of the organization, measurement of effectiveness and growth

Organizational Gap Development

  • Isolating an area of interest

  • Identify the benchmark or industry standard

  • Implementation plans

    • Documenting goals and actions to achieve

    • Meeting with employees to discuss the new vision

    • Soliciting employee support

    • Implementing your change

    • Measuring the results

OED Initiatives

  • ADDIE model (Analysis, Design, Development, Implementation, Evaluation)

Group Decision Making

  • Teams and groups are different

  • Brainstorming

  • Dialectical Inquiry - debate pros and cons

  • Nominal Group Technique - structured process, compose list of ideas

  • Delphi technique - successive rounds of ideas, etc.

Ways to Address Quality

  • Systems theory - success relies on synergy, interrelations and interdependence between different subsystems

  • ISO Quality standards

    • Terminology

    • Recruitment

    • Human Governance

    • Workforce Planning

  • Quality control Tools

    • Cause and effect diagram - fishbone - 5 whys

    • Check sheet

    • Control Chart

    • Histogram

    • Pareto chart

    • Scatter diagram

    • Stratification

  • Theory of Constraints - chain is no stronger than the weakest link

  • Six Sigma - variation in a process creates waste and errors

Measuring OED

  • Lagging indicators

  • Leading indicators

  • Cultural assessment - identify current and desired culture (OCAI tool)

    • Internal focus and integration vs external focus and differentiation (product, relationship and price)

    • Stability and control vs flexibility and discretion

  • Four organizational culture types

    • Clan - family

    • Adhocracy - creative, innovation

    • Market - results oriented

    • Hierarchy - formal, structured

Functional Area 8: Workforce Management - development, productivity, staffing and effectiveness initiatives

Forecasting - identifying job openings before they exist; part time vs full time jobs available, # of full time equivalent (FTE) people

6 Elements of Organizational Structures

  • Departmental - functional, divisional or matrix

  • Chain of Command

  • Span of Control (flat organization)

  • Work Specialization (vs. rotation of jobs)

  • Formalization (rigid or loose rules)

  • Centralized or Decentralized decision-making authority

Phases of the M&A process (merger and acquisition)

  • Preparation

  • Due Diligence Production

  • Integration Planning

  • Implementation, Measurement, and Monitoring Results

Workforce Planning - balance between the work to be done and the workers available to do it

  • Supply analysis - where your workforce is and what KSAs and competencies they possess

  • Trend and Ratio Analysis Projection

    • Trend - compares historical results with current and identifies what may happen in the future

    • Ratio - compares current or historical points in time

  • Flow analysis - how processes operate

  • Demand analysis - best determination of staffing needs for the future

  • Gap analysis - Measuring the distance between where you are and want to be

  • Solution Analysis - identifying potential solutions

Employee Development

  • Job rotation, job enlargement, job enrichment, apprenticeship programs, higher education tuition reimbursement, wellness training, stress management, and work-life balance (work, family, friends, self)

Measuring Talent Management Effectiveness

  • Overall talent retention rate

  • Cost to hire

  • Revenue per FTE

  • Time it takes to hire

  • Time to full productivity

  • Diversity stats

  • Impact of loss rates on revenue

  • Average tenure

  • Number of senior positions and bench strength

  • Number of internal promotions

Knowledge Management - retention and distribution of organizational knowledge

  • Knowledge assets are both explicit (documented processes) and tacit (org specific know how)

Functional Area 9: Employee and Labor Relations - interactions between the organization and it’s employees regarding the terms of employment

  • Alternative Dispute Resolution (ADR)

  • Approaches to retaliation prevention (open door, whistleblower protection, etc.)

An Employee is - a person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is performed

Employer Rights

  • EEO - can make employment decisions on factors that are job related

  • Expected to give workers more consideration the longer they have served the employer

  • All workers are due fair treatment

  • Employers are generally owners of the work products created by their employees

Employee Rights

  • Given the benefit of the doubt in complaints/discipline

  • Restrictions to an employers termination without cause (civil service, constitutional protections, discrimination protections, whistleblowing proctections)

  • Oral contracts are valid and enforceable

International Labor Rights

  • International Labor Organization

    • Right to collective bargaining

    • No forced labor

    • No child labor

    • No discrimination

  • Org for Economic Co-operation and Development (OECD) - economic data

  • World Trade Org (WTO) - global rules for trade

  • Treaties - formal contracts

  • Trade agreements - administrative arrangements

Handling Grievances/Complaint Procedure

  • Written complaint

  • Supervisor level discussion

  • Management or HR level discussion

  • Senior Management

  • Mediation or arbitration

HR’s role in Managing Conflicts

  • Howard Guttman’s 5 roles

    • Custodian of team alignment

    • Drive/monitor accountability

    • Assess conflict-management behavior

    • Ensure the right capability set on teams

    • Work to make sure teams are high performers

  • Leader’s 5 Step Guide to Conflict Resolution

    • Affirm the relationship

    • Seek to understand

    • Seek to be understood

    • Own responsibility by apologizing

    • Seek agreement

  • Encourage employees to files complaints internally, formal external complaints often mean the employer can no longer speak with the employee about the issue

  • Conducting investigations

    • Obtain a written complaint

    • Conduct interviews (employee, supervisor, witnesses and document)

    • Make a determination

    • Give feedback (to the employee)

  • Disciplining Employees

    • Oral warning

    • Written warning

    • Suspension

    • Termination

    • Policies should be based on circumstances so you’re not locked in

  • Best prevention is great communication

  • Don’t fire on the spot, send employees home so you can investigate first

Functional Area 10: Technology Management - the use of existing, new and emerging technologies to support the HR function and the development and implementation of policies governing the use of technologies in the workplace

Developing workplace policies

  1. Identify the need for a policy

  2. Identify who will take the lead responsibility for this policy development

  3. Gather infomation

  4. Draft the policy

  5. Consult with stakeholders

  6. Finalize and approve the policy

  7. Consider whether procedures will be required to implement the policy

  8. Implement the policy

  9. Monitor the policy’s success and the review and revisit it if necessary

Steps for developing Employee Handbooks

  1. Review and make revisions to current policies

  2. Create an outline of what to include

  3. Create summarized versions of each policy

  4. Add each summary statement in the appropriate sections according to the outline

  5. Review the handbook

  6. Provide a finalized version to legal counsel for review

  7. Select a means of publication

  8. Distribute the handbook

  9. Update as necessary

Functional Area 11: Managing a Global Workforce

The Global Context

A multitude of forces contribute to globalization

  • Economic influences

  • Investment trading markets

  • Enviromental forces

  • Political forces

  • Global insecurity

  • Refugee crises

Three Precepts of Global Force Interconnectedness

  • PESTLE factors help us better understand it

  • Forces may be global, but impacts can be uniquely felt locally

  • We need to distinguish between large-scale forces and trends and more immediate events and “trendy” phenomena

Moving Work

  • Outsourcing (not payroll)

  • Offshoring (on payroll but out of country)

  • Onshoring (lower cost location)

  • Near-shoring (other country is relatively close)

When moving work HR should research…

  • Talent pool

  • Sociopolitical environment

  • Risk levels

  • Cost and quality

Creating a global strategy

  • Guarded Globalization - slow moving, selective, with nationalism and regionalism

  • “Push” factors

    • Saturation of domestic demand; new markets needed

    • Shortfalls in natural resources and talent supply

    • Trade agreements

    • Technological revolution

    • Globalized supply chain

    • Domestic recession

    • Cost pressures and competition

    • Gov’t policies and regulation

    • Improving company’s image

    • Strategic vision

  • “Pull” factors - make foreign markets attractive

    • Gov’t policies

    • Strategic control

    • Growth opps

    • Declining trade and investment barriers

  • Approaches to Strategic Globalization

    • New org in a foreign country - green field

    • Acquiring a subsidiary - turnkey

    • New partnership

    • Outsourcing

    • Repurposing a disused facility - brown field

    • Offshoring to add capacity

  • Must weigh Global Integration vs. Local Responsiveness

    • Ex. chemicals are standard regardless of the country they are used in - global integration

    • Ex. Making adjustments for local taste to Coke - local responsiveness

  • Upstream - decisions are made at headquarters

  • Downstream - decisions are made at the local level

  • The GI-LR Matrix

    • High-low Global Integration and high-low Local Responsiveness

    • LL - interational strategy

    • LH - multidomestic strategy

    • HL - global strategy - minimal customization

    • HH - Transnational strategy - knowledge and practices are shared; HQ is responsible for advertising and strategies

  • Perimutter’s Headquarters Orientations - alternative global management orientations (EPRD model)

    • Ethnocentric - “we know best”, few adaptations, little research in international

    • Polycentric - each country is unique, best run locally, little attempt to use good ideas or best practices from other markets

    • Regiocentric - similarities in large geographic regions and communication within the defined region

    • Geocentric - recongizes similarities and differences, think global act local, best talent and practices regardless

Becoming a Multicultural Organization

Schein’s Model - levels of org culture

  • Artifacts and symbols

  • Espoused values

  • Basic underlying assumptions

Geert Hofstede - 6 cultural dimensions

  • Power distance - how a culture accepts or rejects power inequality

  • Individualism vs. collectivism

  • Masculinity vs. femininity - preference for achievement competition and materialism vs. teamwork, harmony and empathy

  • Uncertainty avoidance - response to ambiguity

  • Long term orientation vs. short term orientation - look to innovate or look to the past

  • Indulgence vs. restraint

Hall’s Theory of High- and Low-Context Cultures - direct and indirect communication

  • High context need direct explicit communication

  • Low context use indirect communication since the participants know one another well

Dilemma Theory - both sides have something to learn from each other

Cross Cultural Challenge

  • Cultural synergy - bringing 2+ cultures together to form an org based on combined strengths, concepts and skills

Managing Global Assignments

  • Technical Assignments

  • Developmental Assignments

  • Strategic Assignments

Global Assignment Guidelines

  • Posts are giving to generate and transfer knowledge, to develop their global leadership skills or both

  • Technical skills must be matched or exceeded by their cross-cultural abilities

  • Repatriation process at end

5 Stages of Global Assignment Process

  • Assessment and Selection

  • Management and Assignee Decision

  • Pre Departure Preparation

  • On Assignment

  • Completing the Assignment

Functional Area 12: Risk Management

2 Philosophies

  • Identifying and protecting things of value (insurance)

  • Nothing ventured nothing gained

The Context of Risk

  • Laws, hazards, safety plans, job descriptions

Definition of Risk - the effect of uncertainty on objectives

Risk Management - identify anticipated risks

Kaplan and Mike’s 3 categories of risk

  • Preventable - illegal, unethical - require active prevention

  • Strategic - identified and accepted, reduce the probability of occurence

  • External - cannot be prevented - how to handle

DHS Risk Management Variables

  • Goals and Objectives

  • Policies and Standards

  • Scrope and criticality of the decision

  • Decision makers and Stakeholders

  • Deciison time frame

  • Risk management capabilities and resources

Risk Identification Approaches

  • Brainstorming

  • Delphi Technique - anonymous questionnaire followed by comments

  • Interviewing

  • Root cause analysis

  • Checklist analysis

  • Assumption Analysis

  • Diagramming techniques - cause/effect, flow charts

  • SWOT analysis

  • Expert judgment

US Army Material Systems Analysis Activity Reliability Scorecard

  • Reliability requirements and planning

  • Training and Development

  • Reliability analysis

  • Reliability testing

  • Supply chain management

  • Failure tracking and reporting

  • Verification and validation

  • Reliability improvements

Managing Risks

  • Eliminate Uncertainty

  • Redefine Ownership

  • Increase or Decrease Effect

  • Take No Action

Types of Risks

  • Safety Risks

  • Equipment Risks

  • Facility

  • Employment

  • Employee as Agent

  • Buisiness

  • Natural Disaster

  • Interational

Functional Area 13: Corporate Social Responsibility - operate ethically and contribute to economic development while improving quality of life for workforce and community

Sustainability is a big part of CSR - conscious of how business impacts communities, employees and environments

  • Triple bottom line - “Three P’s” - people, planet, profit

  • Ex. program - reentry program for stay at home parents; green initiatives, pto volunteerism policy

Employee Volunteerism

  • Be clear if paid or not

  • Volunteering cannot be required

Functional Area 14: US Employment Laws and Regulations

Key concepts

  • Employment and authorization to work

  • Compensation

  • Employee relations

  • Job safety and health

  • Equal employment opportunity

  • Leave and benefits

  • Miscellaneous

Records Management

  • Employees can examine their personal employment records

  • However they are not universally guaranteed copies

  • When asked by outside orgs to confirm info, confirm only the info your employees have authorized you to release

Medical File

  • Separate certain medical files - health insurance application form, life insurance application form, request for medical leave, personal accident reports, worker’s comp report, OSHA

Investigation File- same security provisions as medical records