SHRM exam
reaction, learning, behavior, results
Kirkpatrick's evaluation model
Unfreeze the current state, Move toward the new state and then Refreeze the new state.
Kurt Lewin Model of change
a theory that says that specific and difficult goals, with feedback, lead to higher performance
Goal-Setting Theory
propose that the effectiveness of a particular style of leader behavior depends on the situation. Leaders can flex their behaviors to meet the needs of the situation.
Situational Theories
Perceiving emotion Using emotion to facilitate thought understanding emotion regulating emotion
- Peter Salovey and John D. Mayer's 4 branches of emotional intelligence:
form of program evaluation that occurs before a program begins and determines whether the program is needed. First step= conduct a job/position analysis
needs analysis
A group decision-making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion.
nominal group technique
Activity ratio that measures the efficiency of debt collection. A higher ratio is preferable, but a ratio that is too high could indicate excessively tight credit policies that could hurt sales. Net credit sales/ Avg accounts receivable
Accounts Receivable Turnover
· Provides a format that is flexible and relatively comfortable for discussion · Allows for group brainstorming, decision making, and prioritization · Can provide group consensus · Enables HR to learn about employee needs, attitudes, and opinions in a direct format Gives employees direct input
Advantages of Focus Groups
Provides firsthand and immediate data rather than self-reported data, which can be affected by memory and selectivity. Is time-efficient for subjects.
Advantages of Observation
Safer, confidential environment may generate significant information. Comments can suggest direction for further group research (focus groups and surveys).
Advantages of interviews
Provides additional insight into cultural issues can be observed without the help of those being observed
Advantages of using artifacts
Eliminates the effects of observation and involvement and possible bias of facilitator/interviewer/observer Rich, multi-perspective source of data
Advantages of using existing data
Profitability ratio showing the percentage of total sales revenue after incurring the direct costs of producing goods and services sold. The higher the percentage, the more the company retains on each dollar of sales to service its other costs and obligations. Total cases- COGS/total sales
Gross margin
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
Balance Sheet
Leadership involves managing: People Tasks. 5 types of Managers -country club managers (low task, high relationship) -Impoverished leader (low task, low relationship) -Authoritative leader (High task, low relationship) - Middle-of-the-road (midpoint on both task& relationship) -Team leaders (High task, High relationship)
Blake-Mouton Theory
The ability to understand and apply information with which to contribute to the organization's strategic plan. ex- reviewing the exit interview information to understand why employees have left for competitors.
Business Acumen competency
The approach relies on a top-down sequence with complete change at each level. Change at one level or unit high up in the organization eventually transforms the units and levels beneath it.
Cascade approach
Can be time-intensive Requires experience to extract key data May require ingenuity to find data
Challenges of existing data
The presence of a role model within an individual employee's sphere of influence makes change real and demonstrates, in real time, that change is possible. Many role models (in addition to managers and executives) need to be present throughout the organization to keep the message of change alive until it becomes part of the way the organization operates.
Consistent role models
The ability to provide guidance to organizational stakeholders. ex-obtaining feedback directly from the employees to provide to the leadership team. By obtaining the feedback from the focus groups, more in-depth questions can be asked and clarification can be provided.
Consultation competency
Group discussion is critical to identifying all relevant costs and benefits.
Cost-Benefit Analysis (CBA)
Having a good understanding of the job is a critical piece of training design. Conduct a job analysis for all management positions to ensure that job descriptions and specifications are appropriate.
First steps in a needs analysis
- Coercive: The leader imposes a vision or solution on the team and demands that the team follow this directive. Authoritative: The leader proposes a bold vision or solution and invites the team to join this challenge - Affiliative: The leader creates strong relationships with and inside the team, encouraging feedback. The team members are motivated by loyalty. - Democratic: The leader invites followers to collaborate and commits to acting by consensus. - Pacesetting: The leader sets a model for high performance standards and challenges followers to meet these expectations. - Coaching: The leader focuses on developing team members' skills, believing that success comes from aligning the organization's goals with employees personal and professional goals.
Daniel Goleman's Leadership
he believes that we have something called "emotional intelligence," which is the knowledge and ability to manage our emotions, respond appropriately to situations, and the ability to make sound emotional decisions. - Self awareness -self regulation -empathy -social skills -motivation
Daniel Goleman's views on emotional intelligence
total liabilities/total equity Leverage ratio reflecting how an organization is funding its growth. This varies by industry and strategy type.
Debt to Equity Ratio
Leverage ratio reflecting the amount of exposure to risk from debt that an organization has assumed. A number greater than 1 indicates that an organization has more debt than assets. total liabilities/total assets
Debt to asset ratio equation
A decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.
Delphi Technique
the point of entry for a user into an information system. The system does not need to be web-hosted. It may provide access to the system's search engine, but it is not a search engine. It may be customized to users.
Information system portal
· Tends to foster "group think" conformity · May be difficult to control; can become a forum where participants go off on tangents · Generally don't allow for deep discussions, depending on time constraints and the number of participants Can provide skewed or biased results if participants are not representative
Disadvantages of Focus Groups
Can be time-intensive. Requires strong relationship-building skills. Requires vigilance to avoid bias from influencing questions and interpretation of answers.
Disadvantages of interviews
Requires researcher to understand the principles of culture Can create misunderstandings if the researcher is not familiar with the culture
Disadvantages of using artifacts
The profitability ratio often used as a measure of management performance. Earnings before interest, tax and depreciation/ total sales
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin
Profitability ratio used by equity holders as a standard expression of earnings. Net income/ number of outstanding shares
Earnings per share (EPS)
Leaders are not appointed but emerge from the group, which chooses the leader based on interactions.
Emergent Theory
the ability to perceive, understand, manage, and use emotions
Emotional intelligence
a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform. A shared data base
Enterprise Resource Planning (ERP)
being able to apply the results of data gathering and analysis to make better business decisions. The first step in EBDM is to ask the question that will guide the subsequent search for relevant data. What problems are we trying to solve?
Evidence based decision making (EBDM)
effort increases in relation to one's confidence that the behaviors will result in a positive outcome
Expectancy Theory
Leaders change the situation to make it more more "favorable", more likely to produce good outcomes. "situation favorableness" occurs when: - leader-member relationships are strong -task structure and requirements are clear -the leader can exert the necessary power to reach a group's goals
Fielder's Contingency Theory
Financial reports that summarize the financial condition and operations of a business
Financial Statements
Type of analysis in which factors that can influence an outcome in either a negative or positive manner are listed and then assigned weights to indicate their relative strengths.
Force Field Analysis
- The formal aspects of an organization are usually documented in the organization's charts, policies and in announcements and handbooks, and in the org's reports to stakeholders. They are easier to see and can be slower to change than elements of an org's informal structure.
Formal organization features
The growth phase is characterized by change and expansion in terms of facilities, marketing, and people. These resources are needed to keep up with the demand for products or services. This phase is often accompanied by backlogs and scheduling problems while the organization adjusts to increased demands.
Growth
Success or failure can be attributed to internal factors (e.g., skills, diligence) or external factors (e.g., available resources, market events). Internal factors may be under the employee's control (e.g., the employee can work harder or be more careful), but external factors are probably beyond the employee's control.
Heider, Weiner
Leaders adapt their behaviors to meet the evolving needs of their team. -considers talks and relationship behavior -includes: telling, selling, participating, and delegating
Hershey and Blanchard's Situational Leadership
Behavior is driven by intrinsic factors (innate desires) and extrinsic factors (workplace hygiene). Intrinsic factors: challenging work, meaningful impact of work, recognition Extrinsic factors: job security, pay, conditions Satisfying hygiene factors can remove some areas of discontent that interfere with motivation, but satisfactory workplace conditions are not enough in themselves to create motivation. Motivation is created by appealing to individual desires or needs.
Herzberg
while good workplace conditions do not positively affect motivation, unacceptable conditions will lead to job dissatisfaction and can make a motivated employee look for another job. Hygiene factor levels must be acceptable in order for the motivation factors to become operative
Herzberg's motivation-hygiene theory
helps strategists understand the competitive forces at work in their industries so that they can assess the strengths and weaknesses of their own competitive position.
How is Porter's "Five Forces" framework used in developing strategies?
"Bureaucratic black belts"- know the system well and how to make things happen. "Tugboat pilots" -have good political instincts "Benevolent bureaucrats"- are willing to partner but have their own agendas "Wind surfers"-are willing to partner but only to share in any successes.
Kelly and Medina's ally theories
A financial statement showing the revenue and expenses for a fiscal period.
Income Statement
- Learned by observing how people behave, communicate and interact with each other. - Example: Who people interact with and the nature of their interactions. - Often based on interpersonal relationships that are complex and subtle and can change frequently.
Informal organization features
Revenue is low because there is little market awareness (of the new industry, organization, products, services or processes) and because of the market resistance to change. Entrants (new industries, organizations or products) must create an identity with customers and develop a value proposition, This takes imagination, business acumen and leadership.
Introduction
Data gathering, data warehousing, query and reporting
Key components of a Business Intelligence System (BIS)
- Employees' ability to make decisions that affect their work - Employees' sense of responsibility to the organization or team - The standards employees seek to meet or exceed. - Employees' belief that they will be rewarded for their work - An understood mission and shared values - A feeling of commitment to a shared goal.
Leadership styles affect:
Physiological Needs, (basic needs for survival Safety and Security, Relationships, Love and Affection, Self Esteem, Self Actualization (the need to fulfill one's potential A lower-level need must be satisfied to meet a higher level need, although no need will ever be fully satisfied.
Maslow's Hierarchy of Needs
- The market is saturated with competitors and growth occurs only through introduction of new products or customer groups (which starts new cycles for those entrants) or through acquisitions. Profit margins become narrower and efficiency becomes more important. This means greater formalization and perhaps bureaucracy.
Matuirty
Individuals are motivated by 3 basic desires: Affiliation Achievement Power
Mclelland
-Factors that initiate, direct and sustain human behavior over time. Understanding why people change behave the way they do helps leaders influence behavior by appealing to the right needs in the right way. The perception of the role of motivation in organizations has changed over time. Motivation is seen as more central to the role of leaders and more complex.
Motivation
During the second state, the focus is on getting people to accept the new, desired state.
Moving towards a new state
Decision-making tool in which a team determines critical characteristics of a successful decision; a matrix is used to score each alternative and compare results.
Multi-criteria decision analysis (MCDA)
Individuals are motivated by a desire to satisfy certain needs. Understanding these needs allows leaders to offer the right incentives and create the most motivational external environments. Common factors are achievement, a desire for social connection, and some degree of control.
Needs Theory
Requires skill to be unseen. When the group is very aware of the observer, the data becomes less reliable. Requires vigilance to remove personal bias from observations. Requires experience to note significant behaviors. Observations may not be representative of the entire body of data (i.e., the totality of every meeting, every work process, every transaction).
Observation Challenges
Manipulation of information to create business intelligence in support of strategic decision making. Because of the way the data is stored, OLAP applications can analyze data faster and, in more ways, than traditional relational databases. ·An OLAP application uses a server sited between user and the organization's database. The OLAP server takes the data from the database and stores it in a compact, multidimensional "cube". Each dimension (employees) contains all the attributes in the data base (gender, age, function, pay grade, promotion, education, source of recruitment). The OLAP tool can quickly find all the varied intersections of the dimensions.
Online Analytical Processing (OLAP)
This method relies on independent centers and multiple origins of the change within the organization. Points of origin can be at any level. Organic change radiates out unevenly but accelerates when top leadership support local change and local leaders.
Organic Approach
Introduction- revenue is low because there is little market awareness. Early Growth- as time proceeds, revenue begins to grow Maturity- The market is saturated with competitors and growth occurs only through introduction of new products or customer groups Decline- Eventually demand will decrease, either because the need no longer exists, or it is satisfied more effectively by something or someone new.
Organizational life cycle
This theory emphasizes the leader's role in coaching and developing follower's core competencies. The leader performs the behavior needed to help employees stay on track towards their goals. This involves addressing different employee needs: Directive—Help the employee understand the task and its goal. Supportive—Try to fulfill employee's relationship needs. Achievement—Motivate by setting challenging goals. Participative—Provide more control over work and leverage group expertise through participative decision making.
Path-Goal Theory
analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Threat of substitutes Threat of entry Bargaining power of suppliers Bargaining power of buyers Rivalry among existing competitors
Porter's 5 Forces Model
Market value ratio that indicates market confidence in the organization's ability to maintain or increase earnings. Stock price per share/ Earnings per share
Price to earnings (P/E)
Profitability after all expenses have been deducted, expressed as a percentage of revenue (sales). Total sales- total cost/ total sales
Profit margin
In this model, the change originates at the top and is broadcast to the entire organization. Individuals slowly change with added information, and the change becomes uniform across business units.
Progressive Approach
While this need may seem obvious, it is often overlooked. Training is much more efficient and effective method than trial and error for equipping people with the knowledge and skills to be successful.
Skills required for change
Once the change has been implemented and generally accepted, the focus should be on making the new idea a regular part of the organization.
Refreezing the new state
Structures, management to processes and encouragement, measurement, communication, and other critical support factors must be present and congruent with desired change initiatives.
Reinforcement systems
- Eventually demand will decrease, either because the need no longer exists, or it is satisfied more effectively by something or someone new. Organizations can: o Renew themselves by completely changing their offerings, where they compete, or how they compete. If they succeed, revenues rise. Organizations must return to their innovative roots. o Take no action and accept continued low revenue. As time goes on, organizations and products have few resources to take advantage of opportunities that might deliver growth. o Take no action and experience a decline in revenue that will make it impossible to compete or operate.
Renewal/no growth/decline
A valid test accurately reflects the content of the job. The skills and aptitudes required for successful test performance are aligned with the skills and aptitudes required for successful job performance.
Validity
Profitability ratio for a specific investment, such as a capital expense project. It is usually used to compare the economic costs and gains of options. A good investment generally has an ROI above 1. Analyses showing negative ROIs may then proceed to consider factors whose economic impact is more difficult to measure (e.g., improved employee motivation). Gain from investment- cost of investment/ cost of investment
Return on investment (ROI)
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
SWOT analysis
Individuals are motivated by innate needs, such as competence (McClelland's achievement) and relatedness (McClelland's affiliation) but also by needs for: Autonomy, or the need to feel that one has control over one's life. Purpose, or the sense that one's actions have effects beyond the individual or the workplace.
Self-determination
If people believe in the overall purpose of and reason for the change, they will make a legitimate effort to change themselves. Those leading a change initiative should communicate how proposed changes are necessary to achieve the organization's strategic goals and/or values.
Shared Purpose
the distribution channel through which a product or service flows from the producer to the customer R&D-Operations- Marketing&Fulfillment- customer
Value Chains
The activities and processes that increase the worth of a product or service. An organization's success of meeting its goals.
Value Creation
Sees motivation as absolutely irrelevant theory of motivation holding that people are naturally lazy and uncooperative
Theory X
sees motivation as absolutely critical in the workplace The assumption that employees like work, are creative, seek responsibility and can exercise self-direction.
Theory Y
a leadership theory that suggests that leaders have innate qualities and characteristics that others cannot acquire. sometimes referred to as the "great man theory"
Trait Theory
legitimate, reward, coercive, expert, referent
Types of power
The purpose of this step is to get people to accept that the change will occur. Reducing factors that work against change is critical at this stage
Unfreezing the current state
The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual Expectancy (with reasonable effort, the employee will succeed) Instrumentality (success will result in a reward) Valence (the reward will be meaningful to the employee)
Vroom's Expectancy Theory
allocates resources as if each budget was brand new In an organization using zero-based budgeting, each function, including HR, begins with zero funds and must justify the strategic importance of each item in its budget. Funds are not carried over. Budgets are not necessarily frozen or decreased but could increase, especially if new projects are deemed strategically important.
Zero-Based Budget
Effort increases in relation to one's confidence that the behavior will result in a positive outcome and reward.
attribution theory
A business case is a request for the allocation of resources to implement a solution to a problem or a plan to take advantage of an opportunity. Strong business cases are aligned with the organization's strategy and include a cost-benefit analysis of alternative solutions to the problem or opportunity, including taking no action. The business case usually includes discussion of risks. A cost-benefit analysis is not a business case but is an important part of a business case. Market research may be an input into the business case analysis. A scenario-based test would project the results of a business plan under differents sets of variables (e.g., supply prices, market share).
business case approach
-Likely to get immediate results. -Damages team members' motivation and self-direction over time.
coercive power
current assets / current liabilities Liquidity ratio that indicates level of working capital. Creditors prefer a higher current ratio.
current ratio
-Can improve a team's efforts by offering advice and guidance. Can win respect for the team and its work throughout the organization. - Can create dependency and weaken team members' initiative or discourage their own contributions. Effect will weaken if the individual is a weak team leader.
expert power
Incremental or line-item budgeting uses the previous year's budget. The prior budget is simply increased by a set percentage. Additional funds are requested based on need and objectives.
incremental budgeting
o Created formally- through a title or position in the hierarchy that is associated with the rights of leadership. can save time in decision making and focus on goals May be insufficient if leader is not also competent and effective at leading.
legitamate power
-Appeals to social needs of individuals, the desire for affiliation -Will weaken if leader is not competent, effective, and fair.
referent power
Can appeal to team members' individual motivators. Is useful only when leader has access to and can extend to team members meaningful rewards
reward power
those parts of the economy involved in the processing of raw materials derived from primary activities and in altering or combining materials to produce -Management -finance -legal -supply management -HR management -technology
secondary activities
OLAP allows the analyst to sort data quickly in different ways, according to different and multiple variables. A conventional relational database would be sufficient to identify a trend in one factor or numbers in different departments. A cost-effectiveness analysis could be done on a spreadsheet.
type of analytical task would be best served by online analytical processing (OLAP)?
