CH 2

development

-Acquiring knowledge, skills, and behavior that improve employees' ability to meet challenges of existing jobs or jobs that do not yet exist

job design

-Addresses what tasks should be grouped into a particular job

Strategic Management

-Having the goal to deploy and allocate resources for competitive advantage -Integrally involving the HRM function -Using a business model to create value for customers

training

-Planned effort to facilitate the learning of job-related knowledge, skills, and behavior

selection

-Process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics to help it achieve its goals

recruitment

-Process through which the organization seeks applicants for potential employment

two main concepts of strategic management

-Strategy formulation: •Strategic planning groups decide on strategy -Strategy implementation: •Organization follows through on strategy

concentration strategy

: A strategy focusing on increasing market share, reducing costs, or creating and maintaining a market niche for products and services

Internal Growth Strategy

A focus on new market and product development, innovation, and joint ventures.

job analysis

Process of getting detailed information about jobs

Which of the following is true of two-way linkages?

The strategic planning function and the human resource management function are interdependent.

Intended strategies are the result of the rational decision-making process used by top managers. Emergent strategies

emergent strategies evolve from the grassroots of the organization.

strategy (micheal porter)

explains how an organization, faced with competition, will achieve superior performance

Companies engaged in a cost strategy require employees to

have a high concern for quantity.

In which of the following integration levels is a company's HRM functions built right into the strategy formulation and implementation processes?

integrative linkage

The new focus on strategic HRM has tended to be primarily on ________ strategies that are the result of the rational decision-making processes used by top managers.

intended

KRJ Corporation competes within the publishing industry by focusing on market development, product development, innovation and joint ventures. This is an example of a(n) ________ strategy.

internal growth strategy

Strategic Human Resource Management (SHRM)

is a process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will help a company achieve its goals

strategy (robert grant)

it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization

GreenWorks, a company that produces eco-friendly cleaning solvents, recently introduced a new line of floor cleaners. The company wants all of its employees to be familiar with the features of the new product line as well as its restrictions. Which of the following HRM practices will help GreenWorks' employees acquire the knowledge and skills needed to make their eco-friendly cleaning products a success?

training and development

Companies have used four possible categories of directional strategies to meet objectives.

»Concentration »Internal growth »Mergers and acquisitions »Downsizings

-Four levels of integration between HRM and strategic management function:

•Administrative linkage •One-way linkage •Two-way linkage •Integrative linkage

Performance Management

•Ensures employees' activities and outcomes are congruent with organization's objectives

•Pay structure, incentives, and benefits

•High pay and/or benefits relative to competitors can help company attract and retain high-quality employees •Might have negative impact on overall labor costs •Tying pay to performance can elicit specific activities and levels of performance from employees

talent

•Individuals who can have a disproportionate (positive or negative) impact on the firm •Key groups of employees who are critical to driving value in the value chain that drives value to the customer

5 major components of strategy formulation

•Mission •Goals •External analysis •Internal analysis -External analysis and internal analysis combined constitute SWOT analysis •Strategic choice

porters view on strategy

•STRATEGY > OPERATIONAL EFFECTIVENESS -Performing different activities from rivals or performing them in a different way -Choosing the right configuration of activities, incentives, systems -Making the right trade-offs •Strategy is NOT Operational effectiveness (which organization performs similar activities than rivals)

business model

•Story of how firm will create value for customers and how it will do so profitably.

How Does HRM Relate to Strategy Implementation

•Then, HR is responsible for figuring out how to allocate and deploy the human capital necessary to execute strategy effectively and efficiently

organizational culture

•a complex set of values, beliefs, assumptions, and symbols that define the way in which a firm conducts its business." •Helps define relevant stakeholders (employees, customers, suppliers, and competitors) and how to interact with them. Both strategy and culture need to be aligned with the value they provide to customers.

Five important variables determine success in strategy implementation:

•organizational structure; task design; the selection, training, and development of people; reward systems; and types of information and information systems.