SHRM-SCP Exam Study Prep

SHRM-SCP Exam Study Prep Shareholder (Workplace) - ANS An owner of shares in a company. A person who invests in a corporation by buying stock and is a partial owner. Stakeholder (Workplace) - ANS Stakeholder is Everyone. Someone other than a stockholder or creditor who potentially has a claim on the cash flows of the firm. A person or organization with an interest in a particular place or issue. Strategy (Workplace) - ANS A long term plan. Are long term, are things that are long term goals. Strategies Do Not change that much. A plan of action or policy designed to achieve a major or overall aim. Plan of action for accomplishing an organization's overall and long-range goals. Strategy ~Larger, overall plan that can comprise several tactics. ~Broad, "big picture" ~Over time, long periods of time, future-oriented. ~A year of advertising and marketing plans for a company Stakeholder theory - ANS A theory that holds that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation. Tactics (Workplace) - ANS Short term steps on the way to long term plan/objectives. Are short term. Are the companies short term goals. Changes are made often. An action or strategy carefully planned to achieve a specific end. The methods and actions taken to accomplish strategies. Tactic ~Plans, tasks, or procedures that can be carried out; may be part of a larger strategy. ~Narrow, "close-up" ~Soon or present. ~One of the ads from the planned marketing strategy. The difference between a strategy and a tactic: (Workplace) - ANS A strategy is a larger, overall plan that can comprise several tactics, which are smaller, focused, less impactful plans that are part of the overall plan. Engaging and Preparing Stakeholder - ANS -SWOT -Multi Criteria -Cost benefit -Force field analysis Compa-ratio - ANS Pay rate divided by the midpoint of the pay range. i.e. Given a pay range with a minimum of $16.00 per hour and a maximum of $20.00 per hour, the midpoint is $18.00 per hour. The Compa Ratios for employees A, B, C, and D would be as follows: $16/$18 = .89 or 89% - Employee A earns $16. $16.50/$18 = .92 or 92% - Employee B earns $16.50 $18/$18 = 1.00 or 100% - Employee C earns $18.00 $19/$18 = 1.06 or 106% - Employee D earns $19 Yield Ratio - ANS a ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. Yield ratio in HR shows the percentage of candidates from the recruitment sources that were selected for the next stage of a hiring process. In simple words yield ratios show the efficiency of the certain recruitment method. Information about yield ratio allows HR. KPI-Key Performance Indicator Yield ratio = Number of leads from Recruitment Method/Number of candidates invited to interview x 100% Qualified Applicants/Total Applicants Female Applicants/Total Applicants Offers Extended/Final Interviews Minority Applicants/Total Applicants ROI - ANS Return on investment Gain from Investment - Cost of Investment/Cost of Investment ROI ex: Loaned $250.00 $500 - $250 = $250.00 You made 50% ROI Profitability ratio for a specific investment, such as a capital expense project. Its usually used to compare options. ROI - ANS Globalization (Workplace) - ANS Status of growing interconnectedness and interdependency among countries, people, markets and organizations worldwide. The process by which businesses or other organizations develop international influence or start operating on an international scale. Growth to a global or worldwide scale. Globalization (Workplace) - ANS Actions or processes that involve the entire world and result in making something worldwide in scope. The process by which businesses or other organizations develop international influence or start operating on an international scale. Others characterize the dimensions of globalization as a web of interconnectedness of the movement of people (labor) and knowledge (technology) across borders. Thomas L. Friedman calls it Globalization 3.0, when PESTLE, political, economic, social, technological, legal and environmental all converged. Global organization (Workplace) - ANS A global organization is one whose every process, action, and decision is firmly rooted in a carefully conceived global strategy. The new global enterprise may be a corporation, a governmental agency, a nongovernmental organization, a nonprofit, an association or an educational institution. An organization that chooses to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage. An organization that operates and competes in more than one country. A global HR professional from a low power distance culture is planning to conduct a needs assessment in a high power distance country. What is the global HR professional likely to discover? (HR Competencies) - ANS Skill deficiencies may not be discussed openly. Culture will play a key role in the needs assessment. In a high power distance country, individuals may be reluctant to share skill deficiencies for fear of losing face. Needs analyses may be less effective if conducted participatively, and decisions regarding who should participate in training may be based on group membership. Which growth strategy is commonly used to accelerate the path to globalization? (Workplace) - ANS Alliances Alliances, partnerships, and acquisitions are vehicles that can accelerate the path to globalization. Alliances (Workplace) - ANS An agreement between 2 or more countries to help each other out in war. Alliances, partnerships, and acquisitions are vehicles that can accelerate the path to globalization. Which growth strategy is commonly used to accelerate the path to globalization? - ANS Alliances Pull factors (Workplace) - ANS Factors that induce people to move to a new location/another location. Positive conditions and perceptions that effectively attract people to new locales from other areas. Which of the following is a "push factor" for global expansion? (Workplace) - ANS Need for new markets Organizations are pushed toward globalization in reaction to changes in the business environment (such as limited market opportunities in their home countries). The other factors listed here are "pull factors." Organizations are pulled toward globalization through the promise of achieving greater organizational value. Which of the following is considered a "pull factor" in attracting organizations toward globalization? (Workplace) - ANS Greater strategic control A "pull" globalization factor is an attribute of globalization that an organization wants to achieve--in this case, greater control over strategic goals. The other factors are "push" factors, ones that oblige an organization to go global to remain competitive. An employee has been selected for an international assignment. This first-time assignment is expected to last two to three years and involves full relocation. Why is a well-crafted global letter of assignment a key part of the assignment plan? (Workplace) - ANS It addresses the terms and conditions of the assignment. A letter of assignment evolves from the assignment plan and addresses the business aspects of the assignment as well as compensation, benefits, and local work rules. Taking the time to ensure that the information provided is clearly articulated, thorough, consistent, and unambiguous sets clear and reasonable expectations between the employer and the employee. In turn, this information sets the stage for a successful first-time international assignment. A letter of assignment does not address culture shock or repatriation specifics (although it may include information about termination policies). Third-party vendors may still be needed through various phases of deployment, repatriation, or redeployment. What critical role does HR need to assume in light of today's globalization forces? (Workplace) - ANS Balancing policy standardization to reflect an organization's global strategy with policy localization to reflect national cultures and laws Globalization has made the role of HR more critical and more complex. In developing and implementing global strategies, global HR must constantly balance standardization of policies influenced by the organization's values and global strategy with the need to localize these policies through programs and practices that reflect organizational and national cultures and local laws. What impact an organization's Local Responsiveness (LR) globalization strategy have on the HR staffing strategy? - ANS More emphasis on mentoring and talent management. An LR strategy commits an organization to greater reliance on local expertise. This would call for increased in vestment in developing local talent and a new class of local leaders. What HR task is typically required by a multidomestic corporation? (Workplace) - ANS Coordinating HR activities between the home and host countries. A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities with the goal of consistency while remaining flexible with local law and culture. A global task force is behind schedule on its project. Members from different regions and disciplines seem unable to understand one another's perspectives or priorities. Which component of emotional intelligence can best help the team leader understand the root problem? (HR Competencies) - ANS Empathy Empathy enables one to acknowledge and understand others' emotions. In a diverse organization, where one person's emotional response may be inexplicable to someone with a very different background, this is a critical skill. The other components listed can be of help in arriving at and implementing a solution, but empathy is the starting point for determining the problem. What is one thing an organization can do to help ensure a global assignment's success for both the individual and the organization? (Workplace) - ANS Provide well-planned, ongoing training and support. Ongoing training and support is critical throughout the assignment, not just before. Both expatriation and repatriation require equal attention. Assignments should be viewed as a process, not an activity. All criteria, not just functional and communication skills, should be considered in candidate selection. A Taiwanese manufacturer of electronic components for major global brands has sites in several emerging economies, including Vietnam, Turkey, and Mexico, and in the U.S. What offshoring trend does this exemplify? - ANS Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies. The motivations for offshoring, and, consequently, where it is taking place and which firms are adopting it as a global strategy, are changing as a result of new globalization forces, principally the shift from developed to emerging economies. The flow of offshoring jobs is now going in both directions or, rather, in many directions at once. KNOW THESE TERMS: - ANS What critical role does HR need to assume in light of today's globalization forces? (Workplace) - ANS Balancing policy standardization to reflect an organization's global strategy with policy localization to reflect national cultures and laws. Globalization has made the role of HR more critical and more complex. In developing and implementing global strategies, global HR must constantly balance standardization of policies influenced by the organization's values and global strategy with the need to localize these policies through programs and practices that reflect organizational and national cultures and local laws. Which company illustrates a geocentric global orientation as described by Perlmutter? (Workplace) - ANS Senior management personnel from all countries are considered to be part of a single global resource pool. In a geocentric global orientation, the organization is viewed as a single international business with a global orientation. Global assignments based on business strategy - ANS *Domestic:* - none *Multi-Domestic:* - average performer/home country national (expatriate) to transfer technology/maintain control; no job back home *Multinational:* - best performer/expatriate sent abroad; inpatriate brought to headquarters -highly integrated but learn little about local culture -re-entry a bit easier *Global:* - transpatriates who understand world; organizational development is key -experience helps career! Global assignments - ANS Based on business strategy How has the sustainability movement changed organizations' relation to their stakeholders? (Workplace) - ANS Organizations now consider a broader range of stakeholders and give them a more active role in shaping their policies and goals. Sustainability has expanded both who the significant stakeholders are and how the organization interacts with them. Instead of just those with a direct financial stake in the organization, "stakeholders" now also includes those affecting or affected by an organization's social and environmental value. Sustainability also expands the ways in which the organization interacts with its stakeholders, who now play a more active role in helping it define and implement everything from individual projects to larger corporate social responsibility strategy and goals. What HR task is typically required by a multidomestic corporation? (Workplace) - ANS Coordinating HR activities between the home and host countries. A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities with the goal of consistency while remaining flexible with local law and culture. Four-Layer Model of Diversity (Gardenswartz & Rowe) (Workplace) - ANS FOUR LAYERS OF DIVERSITY ORGANIZATIONAL DIMENSIONS (Outer layer) -Functional level/Classification -Work content/Field -Division/Department Unit/Group -Seniority -Work location -Union Affiliation -Management status EXTERNAL DIMENSIONS (Third layer) -Geographic Location -Income -Personal habits -Recreations habits -Religion -Educational background -Work Experience -Appearance -Parental Status -Marital Status INTERNAL DIMENSIONS (Second layer) -Age -Gender -Sexual orientation -Physical ability -Ethnicity -Race PERSONALITY (Middle/Center) What is the underlying rationale for devising the four-layer model of diversity? (Workplace) - ANS It provides a framework for understanding the range and complexity of diversity issues. Gardenswartz and Rowe's model attempts to provide a thorough, inclusive definition of diversity. It offers a useful framework for understanding the range and complexity of the issue of diversity. Perhaps the greatest benefit of this model is that it underscores the fact that we are all multidimensional. In the four-layer model of diversity, which layer consists of the results of life experiences and choices? (Workplace) - ANS External dimensions Are the effects of diversity on an organization's branding efforts most likely to be positive or negative? (Workplace) - ANS Either positive or negative. The positive image of being a diverse, global, inclusive organization can in and of itself be a marketing advantage and selling point, helping the organization to connect and identify a brand with diverse markets. However, targeted marketing efforts that attempt to focus on specific diversity identity groups can, over time and by cumulative effect, start to blur the core brand image. ADDIE model (People) - ANS Analysis Design Development Implementation Evaluation Five-step instructional design process that governs the development of learning programs. Analysis/Assessment - First phase of ADDIE is analysis or assessment, data is collected to identify gaps between actual and desired organizational performance. A needs analysis assesses and identifies developmental needs at three levels: organizational, task and individual. Design- Second phase of ADDIE is design. During this important phase broad goals and objectives are developed and broad plans for the treatment of the content and the strategy for implementation are made. The outcome of the design phase is an architecture or rough sketch of what the final program will look like. Development - Third phase is the development phase, during this phase materials are created, purchased or modified to meet the stated objectives. Existing or old materials both need either minor modifications or to be developed. Case studies; Round robin; Role plays; Structured exercises; Simulations; Fishbowl activities; T-groups. Implementation - Is the phase of ADDIE where the program is delivered to the target audience. Pilot programs, revisions to content, announcements and launch events, participant scheduling, and preparation of the learning environment, are done during implementation. Evaluation - The final phase of ADDIE involves measuring the effectiveness of the training. Evaluation consists of comparing the program results to the established objectives to determine whether the original needs were met. Evaluation methods: Donald Kirkpatrick's Four Levels at which training can be evaluated: Reaction (Level 1) Learning (Level 2) Behavior (Level 3) Results (Level 4) Instructional systems design framework consisting of five steps that guide the design and development of learning progra D&I Strategic Process - ANS 1) Executive commitment 2) Preliminary assessment 3) Infrastructure creation 4) System changes 5) Training 6) Measurement/evaluation 7) Evolution and integration Kirkpatrick identified four levels at which training can be evaluated. At which level would you be evaluating return on investment? (People) - ANS Results. In a targeted effort to attract more diverse talent, a global organization is sponsoring after-school training that prepares any at-risk student for entry-level internships. Which potential dynamic is the most likely to work against this initiative? (Workplace) - ANS Majority backlash from parents of students who are not at risk. Because this is a targeted effort to attract at-risk students, students who are not at risk will not qualify and their parents may feel their children should not be excluded from the benefits of this initiative. Since at-risk students are the target audience, similarity bias doesn't apply; neither does bias-based exclusion. Although students (rather than parents) might engage in "covering" behavior, it is not the dynamic most likely to work against this initiative. HR has been assigned the task of designing and implementing the training and development component of an organization's diversity and inclusion strategic initiative. What should be the primary goal of the courses HR designs for management? (Workplace) - ANS Helping them manage diverse teams effectively and foster an inclusive work environment. The key goal of management-directed training is helping executives learn to manage more effectively. Diversity awareness courses aimed at the entire organization (another key training component) will focus on their ability to better understand minorities and their own attitudes toward them (and to not believe they have "limitations to overcome"). What functions within an organization are most likely to experience increased costs due to increased diversity? (Workplace) - ANS Training and recruitment. Diversity can increase costs for training in cultural awareness, communication, and team building, and it can increase costs and time frames for recruitment efforts, since a broader diversity-based talent search often requires new resources, procedures, and validation measures. HR has four tools at its disposal in influencing managerial practices and developing new managerial skills, often referred to as the 4 Ts. Travel, training, and transfers are three of them. What is the fourth T, and what is its purpose? (Workplace) - ANS Teams. Working on global teams and international projects helps executives develop cross-cultural management skills. The 4 Ts are travel, teams, training, and transfers. They can be valuable strategies for creating a global mindset and enhancing the multicultural awareness of leaders and senior managers. In regard to teams, managers can be trained to form all their teams with an eye toward diversity and inclusion (gender, generational, cultural, etc.), not just for its own sake but for the problem-solving and innovation advantages of more-diverse teams. 4Ts (Workplace) - ANS Travel, teams, training and transfers. Strategies for creating a global mindset and enhancing multicultural awareness of leaders and senior management. An organization launched its first diversity and inclusion initiative roughly five years ago. In recent months, there has been an increase in younger people leaving the organization. In exit interviews, these employees complain about being ignored by management. Which kind of data should HR collect to help measure inclusion? (Workplace) - ANS Data reflecting how these employees were treated and how they feel they were treated. To help measure inclusion, HR should collect data reflecting how the departing employees were treated and how they feel they were treated by management. This requires both objective and subjective data. The employees' participation on work-related committees doesn't necessarily reflect a feeling of inclusion, especially if they feel their views are ignored. Customer feedback about branding isn't relevant to employee inclusion. Demographic representation just addresses numbers of people in a category, not how included those people feel. What is one key purpose of the preliminary assessment stage of the diversity and inclusion strategic process? (Workplace) - ANS To identify current needs in order to set corresponding priorities, goals, and objectives. A successful strategy must start with a detailed assessment of the organization's current state. The purpose is twofold: (1) to identify current needs in order to set corresponding priorities, goals, and objectives and (2) to provide benchmarks against which the success or failure of subsequent diversity and inclusion strategies can be measured. An HR director has been assigned to develop a program to support the opening of new retail stores. Which step in the ADDIE process identifies the behavioral results of the program? (People) - ANS Design Assessment DESIGN Development Evaluation Design is the Second phase of ADDIE. During this important phase broad goals and objectives are developed and broad plans for the treatment of the content and the strategy for implementation are made. The outcome of the design phase is an architecture or rough sketch of what the final program will look like. Gaps between actual and desired performance are best identified in which phase of the ADDIE process? (People) - ANS Assessment ASSESSMENT Design Development Implementation Evaluation Training gaps are best identified during the assessment phase of training. The design and development of the training program and evaluation tools are based on the performance gap analysis. An HR task force has determined that storms that could interfere with the ability of critical personnel to reach work occur with moderate frequency in a particular area. Forecasting has become very good (but not perfect) at providing accurate advanced warning. The group is using a PAPA model to decide appropriate risk management strategies. What approach are they likely to take for this risk? (Workplace) - ANS Prepare. It is best to prepare for events that unfold quickly (even with warning) and are moderately probable. A highly probable and fast-moving event might cause the organization to maintain capabilities that can be initiated immediately (e.g., redundant offices in other locations). This would be an Act strategy. Adapt strategies are for slow-moving events, such as foreseeable demographic changes. Park strategies are for rare events that unfold slowly. PAPA-Prepare Act Park Adapt (Workplace) - ANS Evaluating Risks - Risk prioritization matrix, PAPA model Vertical axis the speed of change-Slow to Fast. Horizontal axis access the degree of likelihood-Low to High. P A P A Prepare events are not likely to happen but will materialize quickly if they do occur. That means contingency plans must be in place and early indicators defined. Act events are both highly probable and fast moving. These threats and opportunities require immediate responses in terms of enhancing the chances for opportunities and decreasing the chances of a threat occurring or creating significant damage. Park events are slow-moving and unlikely. They merit monitoring for changes in their characteristics but not investment in mitigation or contingencies. Adapt events are actually slowly materializing trends that may affect the organization significantly. Unions and Strikes - ANS Union is an association of workers, formed to bargain for better working conditions and higher wages. Union Strikes - ANS When people will refuse to work in order to receive certain benefits, such as more pay, longer hours, and other benefits. When a strike occurs HR must implement contingency plans, deliver training and arrange payment to replacement workers. Examples of Industrial Actions: (Organization) - ANS General strike - Work stoppage. Sit-down strike - Refusal by workers to work Sympathy strike - Action taken in support of another union that is striking the employer. Wildcat strike - Work stoppage at union contract operations that have not been sanctioned by the union. Secondary action or Boycott - Attempt by a union to influence an employer by putting pressure on another employer. Work-to-rule - Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions. (Slow down strike) Picketing - Positioning of employees at the place of work targeted for the action for the purpose of protest. (Huge Rat in front of your workplace) Picketing can be used the same as a strike but no work stoppage. Lockout - ANS A company tool to fight union demands by refusing to allow employees to enter its facilities to work. An employer may also voluntarily stop work at an operation through a lockout. A lockout occurs when an employer shuts down operations to prevent employees from working. The HR director and the management team of a small resort hotel are developing a strategy to remain union-free. A union's representatives are talking with the employees. What action should management take? (Organization) - ANS Present the company's position and the union's strategy to the employees honestly. Be honest with the employees. Being dishonest will play into the union's potential future organizing campaign. Unfair labor practice (ULP) - ANS Violation of employee rights under a country's labor-relations statutes. Alternate Dispute Resolution (Organization) - ANS Negotiation, mediation, arbitration A process by which the parties to a dispute resolve it through a mechanism other than litigation in court; includes arbitration, negotiation, and mediation. Recognizing that employees have different levels of knowledge, skills, and abilities as it relates to technology, what is the human resource director's first step in the training process? (People) - ANS A. Contact the smartphone vendor to determine the types of training programs and support they offer and provide this information to employees who are first-time users. B. Conduct a needs assessment to determine the knowledge, skills, and abilities of each of the employees. C. Distribute the phones to employees during a company meeting and provide optional web-based training. D. Provide the phones and instruction manuals to the supervisors to distribute to the employees. The employees should read the instruction manual, and, if they have any questions, they should contact the human resource director. B is the best answer. The first step in the ADDIE model is to conduct an assessment to identify gaps and to determine the training that needs to be provided. A is incorrect. This would not be the first step, although it may be an option for additional training if needed. C is incorrect. A needs assessment would need to be conducted prior to determining whether this is a viable approach. D is incorrect. This may be an option for employees who have the knowledge, skills, and abilities but not for the employees who have never used a smartphone. Forms of ADR-Alternate Dispute Resolution (Organization) - ANS Open-door policy; Ombudsperson; Single designated officer; Chosen officer; Peer review; Mediation; Arbitration. An organization refers cases of serious employee infractions to a group of employees who are trained in due process. What alternate dispute resolution technique is the organization using? (Organization) - ANS Peer review. Peer review is Establishes a panel of employees, or employees and managers, trained to work together to hear and resolve employee complaints. The panel may be led by an HR Professional. Peer review, may not change organization policy but may recommend changes are made to the policy. Peer review is sometimes limited to discharges and suspensions. What is a characteristic of alternative dispute resolution (ADR)? (Organization) - ANS ADR does not preclude litigation. ADR does not prevent disputes from winding up in court or in formal arbitration, but it can result in fewer cases going to trial. It is generally used in union-free organizations. While some ADR systems do include peer review, it is not a requirement. Similarly, some systems may bring in neutral third parties from outside the organization, but that also is not an ADR requirement. What action during the termination process might violate an employee's due process? (Organization) - ANS Failure to offer an opportunity for the employee to explain actions. Employees may claim violation of due process if they are not allowed a chance to question evidence and defend themselves. Due process does not necessarily involve ADR or peer review. Warnings are not required in terminations for summary offenses. After investigation and hearing, an employee can be terminated immediately for a summary offense. After a workplace survey showed that it was not perceived as "employee-friendly," an organization decides to implement alternative dispute resolution (ADR). Which type of ADR would be most appropriate? (Organization) - ANS Chosen officer. A chosen officer ADR system allows employees to select an arbitrator from a list of managers/officers. This provides a greater sense of empowerment and control over the situation. An ombudsperson can mediate but not resolve disputes. This may not substantively increase the quality of the workplace. A single designated officer system, in which management designates the arbitrator, probably will not increase employee trust if the officer does not already have credibility or if the employee is intimidated and made to feel at a disadvantage by the structure and process of a formal arbitration. Leadership Approaches (HR Competencies) - ANS -trait -functional -styles -situational -transformational Functional structure - ANS People with similar occupational specialties are put together in formal groups. An organizational structure composed of all the departments that an organization requires to produce its goods or services. Functional Structure Advantages - ANS Encourages learning from others doing similar jobs. Easy for managers to monitor and evaluate workers. Allows managers to create the set of functions they need in order to scan and monitor the competitive environment. Leadership Approaches (HR Competencies) - ANS Organizations create their own models of leadership, a set of traits or behaviors that are believed to be well-aligned to the organization's mission, strategy, and culture. Organizations are deeply interested in identifying the type of leadership that is most effective in their workplaces. Solo leader gets involved and interferes in everything. Sets objectives. Directs team members activities. Team leader delegates team roles to others. Creates vision on which others act. Develops team members growth. Authentic Leadership or Transformational leadership (HR Competencies) - ANS A style in which the leader is true to himself or herself while leading. Leadership now is seen as associated with an organizational or group role, and models now place greater value on different behaviors. Leadership Approaches (HR Competencies) - ANS Coercive -Leader imposes a vision or solution. Authoritative -Leader proposes a solution and invites team to join this challenge. Affiliative - Leader creates strong relationships and encourages feedback. Democratic - Leader invites followers to collaborate and acts by consensus. Pacesetting - Leader models high performance standards. Coaching - Leader develops team members skills. Influencing (HR Competencies) - ANS Effective leaders are able to influence others to engage their support or collaboration or to resolve conflicts. Influence relies on using one's power to change others perceptions or actions. The process of a leader communicating ideas, gaining acceptance of them, and motivating followers to support and implement the ideas through change. How to change people's perceptions? (HR Competencies) - ANS Influence relies on using one's power to change others perceptions or actions. Using power effectively in this manner requires understanding types of power. John French and Bertram Raven found 5 ways in which leaders can create power: - ANS Types of Power 1) Legitimate power Created formally through a title or position 2) Reward Created when followers receive something they value in exchange for commitment (i.e. compensation, bonus, promotions) 3) Expert Created when a leader possesses great intelligence, insight or experience (IT professionals have expert power) 4) Referent Created by the force of the leader's personality (Based on their power) 5) Coercive Created when the leader has the power to punish nonfollowers. (Leader will punish people that do not follow them) Emotional intelligence (HR Competencies) - ANS The ability to reason about emotions and to use emotions to enhance reasoning. It enables people with very different backgrounds and perspectives to work productively with one another. 4 branches of Emotional Intelligence, Salovey & Mayer: - ANS 1) Perceiving emotion-Identifying your own and others' emotions and controlling your own 2) Using emotion to facilitate thought-Decision making, problem solving, etc., within the context of emotions. (i.e. Boss not in a good mood so you should not ask for a raise) 3) Understanding emotion-Interpreting complex emotions and understanding their causes 4) Regulating emotion-Detaching from emotions when they get in the way. (Put it aside, detaching from others emotions) Daniel Goleman's views on emotional intelligence quotient: (HR Competencies) - ANS Goleman's views on EIQ suggests the qualities that an organization's upper management and HR management will need to be able successfully promote EI throughout the organization. Emotional intelligence- knowledge/ability to manage emotions, respond appropriately to situations, and ability to make sound emotional decisions- argues this intelligence is more important in life than traditional math/verbal kind of intelligence that schools glorify The capacity to understand and manage your own emotional experiences and to perceive, comprehend, and respond appropriately to the emotional responses of others. (Goleman stated that people tend to lack the ability to manage their own emotions) Goleman's 5 components of Emotional Intelligence Quotient: - ANS 1) Self-awareness-Becoming aware of your emotions and needs and their effect on work relationships. 2) Self-regulation-Learning to control and accommodate one's emotions 3) Motivation-Possessing a passion for the job or current objective 4) Empathy-Being aware and accepting of the importance and legitimacy of others' emotions (for team building) 5) Social skills (social intelligence)-Being able to create connections or rapport with others. (Telling a person they have to work this weekend then saying you have Monday or Tuesday off) Social intelligence (HR Competencies) - ANS Social intelligence entails seeing and interpreting the impact of one's behavior on others and altering behavior to increase other people's level of comfort and trust. The know-how involved in comprehending social situations and managing oneself successfully. Social intelligence (HR Competencies) - ANS The know-how involved in comprehending social situations and managing oneself successfully Motivation (HR Competencies) - ANS Defined as factors that initiate, direct and sustain human behavior over time. Understanding why people behave the way they do helps leaders influence behavior by appealing to the right needs in the right way. A need or desire that energizes and directs behavior. Motivation is seen as more complex and central; irrelevant What motivates one person may not motivate another employee. - ANS People are motivated by different things Theory X - Bad - People don't want to do anything; leaders believe that people must be strictly controlled and forced to work. Theory Y - Good - People want to do a good job; leaders believe that employees dislike rigid controls and inherently want to accomplish something. Wants rigid control and likes to com to work and Produce. Leaders have to understand what motivates people. Maslow's Hierarchy of Needs (HR Competencies) - ANS Pyramid in ascending order, from bottom to the top, from 1 to 5: (level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Belonging and Love; Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization A lower level need must be relatively satisfied in order for a higher level need to emerge or serve to motivate. No need is ever totally satisfied. The theory's main strength is recognition and identification of individual needs for the purpose of motivating behavior. Maslow's Hierarchy of Needs (HR Competencies) - ANS Pyramid in ascending order, from bottom to the top, from 1 to 5: (level 1) Physiological Needs ~ the need to meet basic physical needs or drives (level 2) Safety and Security ~ the need to feel secure and free from threats, to feel that the world has some order so that one can cope with events (Freedom from war, pollution off the job/Working conditions, employment security, compensation and benefits on the job) (level 3) Belonging and Love; Relationships, Love and Affection ~ the need to belong, to be respected, to be accepted and receive love (Family, friends, community groups off the job/Work groups, clients, coworkers, supervisors on the job) (level 4) Self Esteem ~ the need for respect and esteem in the eyes of oneself and others (Approval of family, friends, community off the job/Training, recognition, high status, increased responsibilities on the job) (level 5) Self Actualization ~ the need to fulfill one's potential, to be the best one can be (Education, religion, personal growth-off the job/Opportunities for growth development, problem solving, creativity on the job) Maslow's Hierarchy of Needs Theory (HR Competencies) - ANS A motivation theory that suggests that human needs fall into a hierarchy and that as each need is met, people become motivated to meet the next-highest need in the pyramid. Individuals are motivated by a desire to satisfy certain needs. Task conflict (constructive conflict) - ANS A type of conflict in which people focus their discussion around the issue while showing respect for people who have other points of view. Personal conflict - ANS Conflict that arises out of personal differences between people, such as differing values, personal goals, and personalities. Climate - ANS Organization climate: Employee attitudes affect ability to retain and motivate employees. Local climate is what you should be focused on. Know about the outer shell so you can get to the inner shell. Overall weather in an area over a long period of time. Some have viewed culture to that of viewing an Iceberg. We see only the visible tip of the culture, the language, food, style of dress, and architecture, sometimes also the lifestyle and behavior. Hidden below are the beliefs and values. Climate changes due to rising levels of carbon dioxide and other gases do not recognize political borders. Collaborate (HR Competencies) - ANS To work together, on a project; cooperate in an effort. Collaborate (or confront) is the best way for Conflict Resolution. The leader and those in conflict accept the fact that they disagree and look for a third way, a new solution to the problem of the conflict. The goal is a Win-Win solution. Conflict resolution in a multicultural organization will be more challenging. Culture (HR Competencies) - ANS The enduring behaviors, ideas, attitudes, values, and traditions shared by a group of people and transmitted from one generation to the next. Set of beliefs, attitudes, values and perspectives shared by members of a group and passed down from one generation to the next. -Nations -Geographical regions -Organizations -Industries -Smaller divisions of these groups In large companies there are cultures in organizations. Layers of Culture - Schein's Diagram (HR Competencies) - ANS Basic Assumptions (implicit culture - core beliefs), Norms and Values (right and wrong) and Artifacts and Products (explicit culture - food, dress etc.) Rule of Law (HR Competencies) - ANS No one is above the law. Authority is exercised only in accordance with written and publicly disclosed laws. Laws are enforced through due process procedures. Government is thereby restrained from abusing power. Implicit Culture - ANS Implicit culture deals with attitudes and beliefs, not tangible things like language, dress, and food. The view toward power is an example of implicit culture. Explicit culture - ANS Cultural practices and knowledge that people can easily talk about, such as clothing styles, respect, behavior, and appropriate greetings. Due Process (HR Competencies) - ANS Following established legal procedures. (law) the administration of justice according to established rules and principles. Jurisdiction (HR Competencies) - ANS The right of a legal body to exert authority over a territory, subject matter or persons/institutions. The official power to make legal decisions and judgments. Conflicts of Law (HR Competencies) - ANS Two or more laws that differ. Rules of law the courts use to determine that substantive law applies when there is an inconsistency between laws of different states or countries. Forum or Jurisdiction Shopping (HR Competencies) - ANS Taking complaints to jurisdiction; lawyers take the case to another city/county where they think the case will go better/their way. Occurs when plaintiffs seek to bring their suit in a jurisdiction more likely to be sympathetic to their claims. Levels of law - ANS Analyzing laws by their areas of control; national, subnational, extraterritorial, supranational, international Within a nation -National laws -Subnational laws (i.e., Zoning laws, municipalities, etc.) Between/amongst nations -Extraterritorial (i.e., U.S. employment related laws-ADA or Sarbanes-Oxley, IRS Taxation, etc.) -Regional/supranational -International Extraterritorial laws extend the power of a country's laws over its citizens outside that country's sovereign national boundaries. Role of Global HR (Workplace) - ANS Leaders must develop strategies that align the organization's objectives and resources with different countries operational, legal, and cultural requirements. The global HR professional will play a major role in supporting strategic management by: Role of Global HR 1) Help create the Organizations global strategy 2) Align HR processes and activities with that strategy -Attracting and retaining leaders and employees -Developing an organizational awareness -Implementing processes to increase integration and exchange of knowledge 3) Enhance communication between the organization and its stakeholders 4)Ensure that HR can fulfill its role and demonstrate its value 5) Adapt to the cultural and legal contexts of each area of the global organization. HR's Role in Managing Change - ANS -Identify impact of change on people and departments. -Assess ripple effect across the organization. -Consult with leadership about ways to support the acceptance and institutionalization of the change. -Stakeholder knowledge to negotiate solutions and develop initiatives. -Communicate quickly and often. -Measure effectiveness in implementing the change. -Track issues and follow up to deliver superior service to HR's internal customers. Sometimes Leaders need to change. To fulfill its role in change management, HR management must ensure that he HR group possess the appropriate change management and leadership skills. Push factors (HR Competencies) - ANS A factor that causes people to leave their homelands and migrate to another region. Pull factors (HR Competencies) - ANS A factor that draws or attracts people to another location. Which of the following is a "push factor" for global expansion? (Workplace) - ANS Need for new markets. Organizations are pushed toward globalization in reaction to changes in the business environment (such as limited market opportunities in their home countries). The other factors listed here are "pull factors." Organizations are pulled toward globalization through the promise of achieving greater organizational value. Upstream (Workplace) - ANS Firm's suppliers, suppliers' suppliers, processes for managing relationships with them. Set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream (Workplace) - ANS The direction in which a stream is flowing. According to the upstream/downstream strategic model, what HR activities are most likely to be placed at headquarters? (Workplace) - ANS Workforce alignment. This model considers it useful to localize downstream HR activities (compensation, benefits, and labor relations) closer to HR customers. Upstream functions (strategic planning, workforce alignment) should be closer to corporate headquarters. Learning Styles (People) - ANS Kinesthetic = Touch Visual = Seeing Auditory = Hearing The ways people think and learn. What is a characteristic of an adult learner? (People) - ANS Focus on "real-world" issues Return on investment (ROI) (People) - ANS Net profit after taxes divided by total assets ROI% = Net program benefits/Total incurred costs x 100 Return on investment is a traditional business tool for both projecting the value of a proposed action and assessing the attained value at completion. Computing the return on investment of training involves: 1. Isolating the effects of the training 2. Converting these effects, benefits, into monetary values 3. Calculating the costs of the training 4. Comparing the value of the effects to the incurred costs. Say Stay Strive - ANS Employee Engagement SAY Diversity & Inclusion and Talent & Staffing Hire great talent that will contribute Include people with Diverse opinions and backgrounds. STAY Career opportunities and Rewards & Recognitions Outline career paths with timeliness and requirements Recognize contributions and values. STRIVE Performance management and Enabling Infrastructure Provide line of sight between individual and organizational goals Enable development of Ideas and new skills. Job enlargement (People) - ANS increasing the number of different tasks in a given job by changing the division of labor. Occurs when the employee is given additional, different tasks within the same job. Job enrichment (People) - ANS Increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work. -Performance and Career Management -Practices to increase engagement -Learning and Development -Strategic Compensation Increases the depth of a job by adding related responsibilities such as planning, organizing, tracking and completing reports. Difference between Job enlargement and Job enrichment (People) - ANS Job enlargement is adding tasks to the role. Job enrichment is adding responsibilities to the role. What term is used to describe the situation in which an employee is given additional, different tasks within the same job? (People) - ANS Job enlargement Employee surveys (People) - ANS Instruments used to collect and assess employee perceptions about the work environment. to identify the potential for increased turnover in the future. Employee surveys provide formal documentation on important organizational issues. -Employee attitude surveys -Employee opinion surveys -Employee engagement surveys Benefits of conducting Employee Surveys: -Provide a direct means of assessing employee attitudes that would otherwise go unreported -Improve employee relations by signaling to employees that their views are considered important. -Increase levels of employee trust -Improve the satisfaction levels of customers-happy employees can turn into/translate to happy customers. -Detect early warning signs of workforce problems and/or sources of conflict. Surveys are a critical part of the communication process between employers and employees. Job bidding - ANS Internal recruiting method that allows employees to indicate an interest in a position before one becomes available. Job posting - ANS The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees Job Bidding & Job Posting-the Differences - ANS Bidding -Allows employees to tell you they are interested in a type of job (future) Posting - internally posting available job. Corporate Social Responsibility Maturity Curve - ANS CSR Maturity Curve B Corporation - ANS Also know as a benefit corporation, in which the company is legally required to adhere to socially beneficial practices, such as helping consumers, employees, or the environment. Appraisal Methods: When should you use one: (People) - ANS Category rating methods -Graphic scale -Checklist -Forced choice Comparative methods -Ranking -Paired comparison -Forced distribution Narrative methods -Essay -Critical incidents -Field review Appraisal tools - Advantages and Disadvantages: (People) - ANS Appraisal tools for good qualitative research in systematic reviews The appraisal method most commonly relied upon in residential lending is the: (People) - ANS Appraisal Methods - ANS - Management by objectives (MBO)- involves setting specific, measurable objectives with an employee and then periodically reviewing the employee's performance - Comparative standards- a form of performance appraisal where one employee's performance is compared to or ranked against the performance of another employee - Absolute standards- a method of performance appraisal involving the independent evaluation of an employee's performance by their manager - Critical incidents- method of appraisal involving the appraiser/manager recording observations or events of good or poor employee performance Performance Appraisal Methods - ANS Executive Compensation Plan - ANS Executive compensation - ANS Executive compensation is a governance mechanism that seeks to align managers' and owners' interests through all of the following EXCEPT a. bonuses. b. long-term incentives such as stock options. c. salary. d. penalties for inadequate firm performance. Common Compensation Metrics - ANS TA-Talent Acquisition - ANS Process of finding and hiring high-quality talent needed to meet the organization's workforce needs Management by objectives (MBO) (People) - ANS A four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment BARS (behaviorally anchored rating scale) (People) - ANS Method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance The Receptionist example is: - ANS Kurt Lewin's Field Theory - ANS Personality is dynamic and constantly changing; can be divided up into ever-changing "systems" that function in an integrated fashion under optimal conditions but are diffused when person is under anxiety or tension. Unfreezing, changing, refreezing - ANS The three stages of change presented in the textbook are: Lewin's Model of Change Process The What-Follow Lewin's steps Unfreeze the current state Move toward the new Transition state Refreeze the new state KSAOs - ANS Knowledge, Skills, Abilities and Other Characteristics. The knowledge, skills, abilities, and other characteristics that are required for successful job performance. Balance Scorecard - ANS Performance management tool that depicts an organization's overall performance, as measured against goals, lagging indicators and leading indicators. a system of performance measures, including nonfinancial measures, used to assess company and division manager performance. Four perspectives: 1. Customer: what do customers think of us? 2. Internal processes: which of our ops are critical to meeting customer needs? 3. Innovation and learning: how can we improve? 4. Financial: what do our owners think of us? Lagging indicators (People) - ANS Indicators that seem to lag behind changes in overall business activity. Lagging indicators help a company improve its staffing efforts midstream. Type of metric describing an activity or change in performance that has already occurred. Leading indicators (People) - ANS Objective measures that accurately predict future labor demand. Type of metric describing an activity that can change future performance and predict success in the achievement of strategic goals. Engagement Metrics - ANS Workers Compensation Incident Rate = Employee Absence Rate = Monthly Voluntary Turnover Rate = Revenue per Employee = Yield Ratio = Low Turnover = Higher Engagement No specific calculation - but can tie investments made to employee engagement; Reduce absenteeism was goal? Calculate employee absence rate before and after engagement plan. Environmental scanning (People) - ANS 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. The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. Maturity curves (People) - ANS Correlate pay with time spent in a professional field such as teaching or research. Pay for Performance (P4P) (People) - ANS Performance-oriented incentives for hospitals and physicians to improve the quality of patient healthcare. 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 performance-based pay. Point-factor system (People) - ANS Job evaluation method that looks at compensable factors (such as skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the job. Stay interviews (People) - ANS Structured conversations with employees for the purpose of determining which aspects of a job (e.g., satisfaction, engagement, culture, organization, leadership, etc.) encourage employee retention, or may be improved to do so. Strategic Fit - ANS A state in which an organization's strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities. Strategic Management - ANS A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals Strategic (management) planning - ANS The managerial process of developing and maintaining a match between an organization's resources and its market opportunities Strategy (People) - ANS A plan of action or policy designed to achieve a major or overall aim. What is the difference between a mission statement and a vision statement? (People) - ANS A mission statement provides an organization's future course, and a vision statement is a guiding image for success. A vision statement is a vivid, guiding image of the organization's success. A mission statement specifies what course the organization intends to pursue. If a strategic plan is the blueprint for an organization's work, then the vision statement is the artist's rendering of the plan. The mission statement provides a general outline of how the organization will achieve the vision. Mission Statement (People) - ANS A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions. Vision Statement (People) - ANS Vision statements are used to create a better understanding of the organization's overall purpose and direction. A formal articulation of an organization's vision or mission. Benefits of Engagement - ANS Online surveys - ANS A method of administration that relies on the Web for completing the survey. ADVANTAGES: -Higher response rates -Quicker results -No interviewer bias DISADVANTAGES: -The biggest problem with online surveys is representativeness of respondents. -Computer access -Pilot testing-small sample of the population What are the drivers in an organization? - ANS Positive reinforcement - ANS Increasing behaviors by presenting positive stimuli, such as food. A positive reinforcer is any stimulus that, when presented after a response, strengthens the response. Negative reinforcement - ANS The reinforcement of a response by the removal, escape from, or avoidance of an unpleasant stimulus. Behaviorist B.F. Skinner demonstrated that behavior could be changed by events that happened afterward, a phenomenon known as: - ANS Selection process - ANS the screening of job applicants to hire the best candidate. screening job applicants to ensure that the most appropriate candidates are hired. Selection Process Steps - ANS 1. screening applications and resumes 2. testing and reviewing work samples 3. interviewing candidates 4. checking references and background 5. making a selection KPI (Key Performance Indicator) - ANS a measure of achievement that can be attributed to an individual, team, or department Balance Scorecard (BSC) - ANS A goal-setting and reward system that translates the organization's vision and mission into specific, measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes. Balance scorecard is a sort of HR Metric. PESTLE - ANS Political, Economic, Social, Technological, Legal, Environmental PESTLE analysis - ANS A tool used by businesses to look at the external environment they face and issues that may arise from the global marketplace they operate in. Broadbanding - ANS Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread. Basic function of Finance - ANS SWOT analysis (People) - ANS Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) How do you interact with Finance? - ANS Audit Steps - ANS 1. Define Audit Objectives 2. Define Audit Scope 3. Conduct Audit 4. Refine Audit Process/Lessons Learned HR audits - ANS HR audits typically review a firm's recruiting, testing, and training methods to ensure compliance with government and organization regulations. Compliance - I-9 Audit Best practices - Competitive Advantage Strategic - Strengths & Weaknesses Function - Specific Outsourcing - ANS Obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source. Outsourcing Process - ANS 1. Analyze current operations, id potential for improvement and define goals 2. Consider alternatives for achieving the goals in terms of projected cost benefits 3. Develop and issue a RFP 4. Evaluate responses in terms of compliance with RFP 5. Chose a contactor and negotiate the contract 6. Implement , administer and monitor contract 7. Evaluate outsourcing strategy against original goals. Select target system, establish logical requirements, develop a request for proposal, evaluate RFP and choose vendor, test and accept solution, monitor and evaluate. Which things should not get Outsourced? - ANS Employment at will doctrine - ANS Says an employee may quit and an employer may fire an employee at any time and for any reason. There are many exceptions to the at-will doctrine, but it is the most basic U.S. employment law. Codetermination - ANS As related to international labor relations, a practice in which employees have a role in the management of a company that includes worker representatives with voting rights on the corporate board of directors. Due Process - ANS Fair treatment through the normal judicial system, especially as a citizen's entitlement. (law) the administration of justice according to established rules and principles. Leadership Theories - ANS Trait Theory, Behavioral Theory, Participative Theory, Contingency Theories, Situational Leadership Summary of Leadership Theories - ANS Trait - Leaders are identified through certain innate characteristics that followers do not posses and cannot acquire such as physical characteristics and personality traits. Great Man theory. Behavioral - Leaders influence group members through certain behaviors. Blake-Mouton theory Impoverished manager (low task, low consideration) Authoritarian (high task, low consideration) Middle of the road manager (middle point) Country Club manager (low task, high consideration) Team leader (high task, high consideration, this is the one Everyone strives for) Situational Theories- Leaders can flex behaviors to meet the needs of unique situations, employing both task with employees. Hersey-Blanchard Situational Leadership Theory (Change style to the situation) Telling Selling Participating Delegating A leader is most effective when the leader's skills match the needs of the situation - both task and team. Fielder's Contingency Theory (Change the situation but not the style) Leader-member relationships are strong. Task structure and requirements are clear. The leader can exert the necessary power to reach the group's goal. Unfavorable situations must be changed to improve group and leader effectiveness. Path-Goal Theory (Provide a Path through situation) Leader performs the behavior needed to help employees stay on track toward their goal. Different types of employee needs: Directive-help the employee understand the task and its goal. Supportive-try to fulfill employ