Human Resource Management
It is the design of formal system in an organization that ensure the effective and efficient use of human capital to accomplish organization goals.
Administrative Role
This role of HR focuses on dealing with compliance issue and record keeping, often via Human Resource Information Systems (HRIS).
Operational Role
This role of HR involves those day to day tasks necessary to run an organization and consists of many of the traditional activities of HR- recruiting for current job openings,resolving employee complaints, communicating with employee,consult on specific i
Strategic Role
This role of HR requires a global, long-term and forward thinking activities.
Enterprise Management
Tool that enables more timely access to shared data throughout the organization.
Which HR functions can be outsourced
Not necessarily considered HR core function like benefits plan administration,payroll administration, and background checks,etc.
Characteristic that separate a profession from occupation
1 National Organization
2 Code of ethics
3 Research
4 Body of knowledge
5 Credentialing
Dimension of change in HR profession
1 Workforce/workplace change
2 Globalization
3 Ethics
4 Flexible organizational boundaries
5 Increased Accountability
Supply Chain
A network that delivers products and services from raw material to end users.
Off shoring
It refers to relocation of processes or functions from a home country to another country and it appeals to organization for cost saving.
Off shoring
A plant or service department is moved to another country. Although separated geographically, the off shored entity remains part of the organization, and workers are still employees of the organization.
Outsourcing
A process or function previously performed by an organization is transferred to a separate entity. The workers now performing this function are not employees of the organization but they are employees of entity to whom the work is given.
Ethical Behavior
Adhering to set of governing principles whether the philosophy is one of fairness, individual rights, avoiding conflicts of interest or another philosophical grounding.
Extended Organization
Business remain separate entities but may appear to outsiders as one entity. Commonly formed through the use of outsourcing.
Merger and Acquisition Process
1 Preparation
2 Due Diligence
3 Planning integration of the business entities
4 Implementation, monitoring and measurement
Due Diligence
Refers to an intensive investigation of all factors surrounding a business decision to ensure that all risks are understood.
Business Case
It describes a project in detail and shows how it will contribute value to the organization and provides sufficient information about how the project will be designed, implemented, and measured to enable the organization's leaders to make informed decisio
Management Functions
1 Planning
2 Organizing
3 Directing
4 Controlling
Planning
Studying the future and arranging the means for dealing with it, which encompass forecasting, selling goals, and determining actions. eg: Forecasting future staffing needs.
Organizing
Designing a structure to assist in goal accomplishment that effectively relates human and nonhuman resources to the tasks of enterprise.Eg : Designing an interview process.
Directing
Engaging in those activities that ensure effective operation, including leadership and motivation pf employee action towards goals. eg : Scheduling and conducting interview.
Controlling
Ensuring that everything is carried out according to the plan. Eg: Measuring recruiting efforts and effectiveness.
Critical Management Skills of HR Professionals
1 Managing Change
2 Managing Technology
3 Managing third party contractors
4 Managing Projects
Project Management
It is a skill that involves organizing and overseeing a project from start to finish.
Project
It is a series of tasks and activities that has a stated goal and objectives, a schedule with defined start and end dates, and a budget.
Characteristic of Project
1 Stated goal and objective
2 Schedule
3 Resource Budget
Project Management Phases
1 Define problem and gain support
2 Plan Project
3 Implement Project
4 Monitor,control and adapt
5 Evaluate Outcomes
Project Sponsor
Is an individual from senior management whose role is to support the project efforts in order to ensure success.
His responsibilities include reporting to all senior management about the progress of the project.
Champion
Can be considered as cheer leader of the project. Main function is to communicate the benefits of the project to
the organization.
Business Case
It describes an organizational challenge and possible alternative solutions, presenting evidence in support of
a proposed solution. They are effective way to compete for limited resources.
Internal Benchmarks
Internal Benchmarks establish levels of current performance of a particular tasks, such as cost per hire.
External Benchmarks
They are often based on industry best practice.
Purpose of benchmarks
1 They can help to identify improvements in an organization's performance that can be attributed to the projects
2 They can suggest appropriate targets for improvement to be included in project objectives.
Project Management Roles
1 Interpersonal
2 Informational
3 Decisional
Interpersonal
In this role, the project manager is a leader and a liaison. The top priorities are building team norms and fostering harmony.
Informational
In this role, the manager is a spokesperson who gathers and disseminates information and is responsible for helping team members communicate effectively across all areas of the organization.
Decisional
In this role the manager allocates resources, negotiates differences, and encourages project progress.
Business Case
It establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost-efficiency, and probability of success.
Parts of Business Case
1 Statement of the problem.
2 Objectives.
3 Description of potential solution.
4 Project Time line.
5 Project Metrics.
Project Planning Tools
1 Gantt Charts
2 PERT Charts
Gantt Charts
Also known as horizontal bar chart, a milestone chart or an activity chart. It graphically displays activities of project in sequential order and plots them against time. The step of the project and their anticipated sequence and duration must be known to
Program Evaluation and Review Technique (PERT) Charts
This chart is used to schedule, organize, and coordinate tasks within a project. these charts are used for very large, complex projects with a high degree of intertask dependency. There are number of circle or rectangle that represent project milestone. T
Benefits Of PERT charts.
1 Identify the minimum length of time needed to complete a project.
2 Identify which tasks can be delayed if resources need to be reallocated to catch up on critical tasks.
Disadvantage of PERT charts
1 The relation of tasks to time may not be as immediately obvious as with gantt charts.
2 This makes the PERT chart more difficult to understand for someone who is not familiar with the technique.
Organizational Concern during Project Management
1 Continuous Communication
2 Identification of success factors
3 Use of established methodology
4 Use of contractors
Model
It is an abstract tool that represents the basic steps or components of a process.
Vendor Selection Process
1 Analyze needs and define goals
2 Define budgets
3 Create a request for proposal
4 Send request for proposal to the chosen vendors
5 Evaluate vendor proposal
6 Choose a vendor
7 Negotiate a contract
8 Implement the project and monitor the schedule
9 Eval
Request for proposal (RFPs)
It is a written request asking vendors to propose solutions and prices that fits customer's requirements.
Purpose of request for proposal (RFPs)
To ensure that responses actually meet hr's needs and consistency among responses so they may be easily compared.
Structure of RFPs
1 Executive summary
2 Company Information
3 Deliverable
4 Project Team/Resources
5 References
6 Outlined development process
7 Cost
Technology tools for HR professional
Human Resource Information System (HRIS)
Human Resource Information System (HRIS)
It is a systematic tool for gathering, storing,maintaining,retrieving, and revising HR data.
Strategic Planning
It is a process not just written project plan that helps an organization focus on how to succeed in the future. It answers questions like
where the company is now?
where does the company want to go?
How will the company get there?
Strategic Planning Phase
1 Strategy Formulation
2 Strategy Development
3 Strategy Implementation
4 Strategy Evaluation
Strategy Formulation
1 Vision and mission
2 Value Statement
Strategy Development
1 SWOT analysis and environmental scanning
2 Long term objectives
3 Strategies to achieve these objectives are defined
Strategy Implementation
1 Short term objective
2 Action plan to achieve these objective
3 Allocating resources
4 Motivating employees to manage the plan.
Strategy Evaluation
1 Strategies are reviewed
2 Performance towards objective is measured
3 Corrective action is taken
Vision Statement
It is a vivid, guiding image of the organization's desired future. It is the ultimate picture of what leadership envisions for the organization.
Mission Statement
It specifies what activities the organization intends to pursue and what course of management has charted for the future. It provides general outline of how the organization will achieve the vision. It includes who the company is, what the company does, w
Value Statement
It describes what is important to an organization and often dictate employee behavior. They are the heart of the culture of an organization.
SWOT Analysis
It is simple and effective process for collecting information on the organization's current state. It answers four basic question.
Environmental Scanning
It is a systematic process of gathering and analyzing all relevant data about external opportunities (emerging marketplace,additional capabilities provided through new technology.) and threats (emerging competition,shifts in marketplaces. )
Long term Objectives
These objectives are generally achieved within 3 to 5 years. Establishing these objectives provides direction, synergy and aids in establishing guidelines for evaluation.
Strategies at three levels
1 Organizational Strategy
2 Business unit strategy
3 Functional Strategy
Short term Objectives
They represent milestones that must be achieved in order to reach the long term objectives. They are usually within 6 months to a year.
SMART
S - Specific
M - Measurable
A - Attainable
R - Realistic
T - Timely
Action Plan
These are the detailed steps a unit,department, or team will take in order to achieve the short term objectives.
Resources
1 Financial
2 Human
3 Physical
4 Technological
Mid term Objectives
Serve the purpose similar to short term objectives but are completed in 1 to 3 years.
Emergent Strategy
New ideas should not be dismissed simply because they originated at a grassroots level. Business innovations developed under these circumstances will create new objectives or modify existing ones and create an overlay of new direction compared to what was
Balance Sheet
The balance sheet is one indicator of the organization's financial health. It is a statement of the organization's financial position at a particular time.
Assets
What an organization owns. Tangible (cash or cash equivalents, inventory of finished product or materials, property and equipment) or intangible (copyrights and patents, software, propriety knowledge)
Accounts receivable
The money an organization customers owe the organization.
Current Asset
It includes items that can be easily liquidated or converted into cash, such as cash deposits, inventory of finished and in-process products and accounts receivable.
Liabilities
What an organization owes.
Accounts Payable
It is the money an organization owes its vendors and suppliers.
Income Statement
It compares revenues, expenses and profits over a period of time usually a year or quarter.
Gross profit ratio
This ratio tells you hoe much of each sales dollar you can expect to use to cover your operating expenses and generate profit.
Cash Flow Statement
It shows how money is flowing into and out of the organization over a defined period of time.
Debt
Total liabilities divided by Total Assets
Gross Profit Margin
Gross Profit divided by Net Sales
Net Profit Margin
Net Profit divided by Net Sales
Operating Profit Margin
Operating Profit divided by Net Sales
Return On Investment
Final Value - Initial value divided by Initial value
Dividend Yield
Dividend per share divided by Net market price per share
Price earning
Market price of single share divided earning per share
Types of Budgeting
1 Incremental Budgeting
2 Formula Budgeting
3 Zero Based Budgeting
Incremental Budgeting
The prior budget is the basis for funding allocation. New funds requested based on need and objectives, which result in incremental adjustments form the prior year's total number.
Formula Budgeting
A specific cost is applied to calculate funding. This method applies an average cost to comparable expenses, and general funding is changed by a specific amount.
Zero Based Budgeting
Budget starts at zero and all expenditures must be justifies for each new period even those that repeat from the prior budget.
Marketing
It is the process of planning, pricing, promoting, and distributing goods and services to satisfy organizational objectives.
Customer Relationship Marketing (CRM)
Building lasting relationship with both customers and suppliers is the goal of marketing departments.
Sales
This function is responsible for selling the organization's product to the marketplace.
Marketing 4 P's
1 Product - what the organization sells to make a profit. Tangible object or service.
2 Place - refers to how a product or service will be made available for the purchase by the customer.
3 Price - Represents a key decision in the marketing plan.
4 Promot
Marketing Mix
The choices made through the 4 Ps : Product,Price,Place and Promotion are what makes a product or service unique. This is distinctive blend of marketing decision.
Research and Development (R&D)
It is to fill an organization's pipeline products at various stages in development that are being readied for sale.
Operations
The central focus of the department is the provision of goods and services to the customer. Basically this department must ensure that the product/service is produced and delivered to the customer.
Methodologies Of Operations
1 Capacity
2 Standards
3 Scheduling
4 Inventory
5 Control
Capacity
It is the ability to yield output.
Standards
They are the detailed time estimates that permit planning or capacity requirements. They provide the yardstick by which the amount and quality of output are measured.
Scheduling
It is essentially the act of detailed planning, and it is based upon incoming orders, order history, and forecasts of future demand.
Inventory
It is after physical buildings and equipment, an organization's asset.
Control
It is an after the fact evaluation of the organization's ability to meet its own specifications and its customer's needs.
Strategic Information Systems
Information systems with a charter to achieve competitive superiority.
Business Life Cycle Phases
1 Introduction
2 Growth
3 Maturity
4 Decline
Introduction
The organization relies on high energy and creativity. Attempts to develop products and services, decision may be made to use experiences staff so training is not an integral part of this phase. may meet or exceed the standard pay range to recruit talent.
Growth
Often accompanied by backlogs and scheduling problems while the organization adjusts to increase demands. Policies,procedures and rules should begin to be formalized as organization needs increased structure during this phase to operate effectively. Recru
Maturity
scheduling problems are largely resolved, and staffing and organizational culture begin to stabilize. Policies, procedures and rules are formalized and communicated to all employees. Training gains added emphasis in this phase to maintain flexibility and
Decline
Organization become entrenched in rules and policies and leadership become resistant to change. series of efforts to turn the tide such as product enhancement or cost reduction programs. If unsuccessful in these then will focus on reducing workforce throu
Porters Competitive Strategies
1 Cost Leadership
2 Differentiation
3 Focus
Cost Leadership
To achieve cost advantage, an organization has to be the low cost producer in its industry.The finished products of low cost producers are sold at prices that beat the competition. These industries depend on volume to provide profit and is less brand loya
Differentiation
These strategies attempt to set the product or service apart form its competition by giving it unique characteristic that customers value and for which they will be willing to pay a premium price.
Focus
These strategy requires that organizations focus on a particular buyer group, segment of the product line or geographical market within an industry. It is build around serving particular target to the exclusion of others.
Blue ocean Strategy
Organization that follow this approach are not competing in an established market. They see themselves as a creating entirely new value. This strategy values innovation, creativity and rule breaking.
Organization Structure
1 Work Specialization
2 Departmentalization
3 Chain of Command
4 Centralization and Decentralization
5 Formalization
Work Specialization
It refers to the degree to which processes are divided into separate tasks that are then divided into specific jobs.
Departmentalization
It is the way an organization groups jobs so that work can be coordinated. In general tasks should be divided
into separate duties, with similar people ans resources grouped together.
Functional
Departments are defined by what services they contribute to the organization's overall mission, such as marketing and sales, operations and HR.
Divisional
This structure is generally more decentralized because the divisions are separated on the basis of product, customer or market or region.
Matrix
It combines departmentalization by division and function to gain benefits of both. It creates dual rather than single chain of command. As a result employee report to two managers rather than one, with neither manager assuming a superior role.
Chain of Command
It refers to a line of authority within an organization.
Centralization
It is the degree to which decision making authority is restricted to higher levels of management. It is recommended under foll condition:
- operating units have conflicting goals and strategies.
- Organization level decisions provide needed economy of sca
Line Units
They are work groups that conduct the major business of the organization such as production or marketing function.
Staff Units
They assist the line units by providing specialized services and support for the organization such as accounting and HR.
Authority
It refers to the scope of responsibilities that define the area in which a manager or supervisor is empowered to
make decision.
Decentralization
It is the degree to which decision making authority is given to lower levels in an organization hierarchy. Usually leads to lean, flat structure and recommended in foll condition:
- Tasks are unique to the operating units product and market.
- Operating u
Formalization
It is logical extension of centralized organization.
Span of Control
Refers to the number of individuals who report to a supervisor.
Flat Organization
Organizations in which many subordinates report to few supervisor.
Wider Span of control
The desire for subordinates to communicate directly with their ultimate supervisor and decision maker.
Large Span of control
can slow an organization, making it difficult for supervisor to make decision quickly.
Narrow span of control
Create more hierarchical structure or tall structure, they are typically used when more supervision is required when tasks are complex or subordinates are poorly trained and inexperienced.
Environmental scanning
It is the process that involves a systematic survey and interruption 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 fu
Factors that affect external environment
1 Demographic Factors
2 Economic Factors
3 Employment Factors
4 International Factors
5 Political Factors
6 Social Factors
7 Technological Factors
Demographic Factors
1 Age
2 Gender
3 Generational Difference
4 Geographic shifts in population
5 Ethnicity
6 Unskilled Labor
7 Non traditional labor force
Generational Difference
1 Traditional Generation
2 Baby Boom Generation
3 Generation X
4 Generation Y
Economic Factors
1 Interest Rates
2 Gross Domestic Product (GDP)
3 Consumer Price Index (CPI)
4 Disposable Income
5 Inflation
Employment Factors
1 Attitudes towards career
2 Immigration
3 Occupational and industry skills
4 Recruitment
5 Unions
6 Unemployment
7 Turnover
8 Relocation
International Factors
1 Global Economy
2 Wage comparison
3 Trade Agreement
4 International Labor Law
Technological Factors
1 Advances in technology
2 Technological skills
3 The digital divide
4 Process changes
Gross Domestic Product (GDP)
It is an estimate of the total value of goods and services produced in a country in a given year.
Consumer Price Index (CPI)
It is a measure of the average change over time in the prices paid by consumers for goods and services.
Disposable Income
It is the amount of money (adjusted for inflation) that consumers have to spend after taxes are paid.
Explain Generational Difference in detail
pending
Financial Measures
1 Cost Benefit Analysis
2 Return On Investment
3 Breakeven Analysis
4 Financial Statement Analysis
Performance Measures
1 Balance Scorecard
Primary Research
It involves data that is gathered firsthand for the specific evaluation being conduced.
Secondary Research
It uses data already gathered by others and reported in various sources.
Primary Research
1 Experiments
2 Pilot Projects
3 Surveys/questionnaires
4 Interviews (exit,panel,individual)
5 Focus group
6 Direct observation
7 Testing
Secondary Research
1 Historical Data (HR records, census records)
2 Benchmarking and best practices reports
3 Purchased Data ( Gallup or Roper data)
4 Professional Journals, Books, and other media
5 Secondhand reports (grapevine reports)
Quantitative Analysis
It is based on numeric data that is analyzed with statistic method.
1 Descriptive Statistic
2 Inferential Statistic
Descriptive Statistic
1 Charts and graphs
2 Measures of central tendency
3 Measures of variation
4 Measures of association
Inferential Statistic
1 Population
2 Sample
3 Normal Distribution
Descriptive Statistic
They are used to condense and summarize large quantities of data for quick understanding.
Measure of central Tendency
These measures try to describe group of things or events by how much of certain characteristic they have in common. Three measures are mean,median and mode.
Mean
It is the average score or value
Mode
It is the value that occurs most frequently
Median
It is the middle point above and below which 50% of the score lie.
Measure of variation
It provides an indicator of variation around central tendency values. Its measures are range, percentile and standard deviation.
Range
It is the distance between the highest and lowest scores.Numerically it is high score minus low score.
Percentile
It is a specific point in a distribution that has a given percentage of cases below it.
Standard Deviation
It shows how much the score are spread out around the mean or average.
Measures of association
It show the extent (magnitude) to which two or more factors (variables) are related and the nature (direction) of the relationship. Its measures are scatter diagram, correlation,regression analysis
Scatter Diagram
It shows the relationship between data items using x ad y axes
Correlation
It is a measure of the relationship between two variables. When one variable increases as other increases the correlation is positive i.e +1 and when one decreases and other increases the correlation is negative i.e -1. The absence of correlation is repre
Correlation coefficient
It is measured on a scale that varies from +1 through 0 to -1.
Regression Analysis
It refers to a statistical method used to predict a variable from one or more predictor variables.
Inferential Statistic
It allows for forming a conclusion about a characteristic of a population by studying a sample taken form that population. Three concepts in this statistic are population,sample and normal distribution.
Population
It is a group of persons or objects or a complete set of observations or measurements about which one wishes to draw conclusions.
Sample
HR professional often do not or cannot use an entire population to test a hypothesis. Instead they draw conclusions about the population based on a part of the population.
Normal Distribution
It is expected distribution given a random sampling across large population.
Qualitative Analysis
It is based on research that supplies non numeric data. It is best used for depth rather than breadth of information. It is better for discovering underlying motivations, feelings, values, attitudes, and perceptions of individuals or group of individuals.
Individual or panel interview
A interview involving asking a carefully planned, structured series of questions in face to face setting.
Observational
Technique in which the person being observed is not aware that his or her behavior,production,or responses are being recorded.
Reliability
It is the ability of an instrument to measure consistency. It is also defined as the ability to repeat an experiment and obtain similar results.
Reliability can be measures by following:
1 Parallel forms
2 Test/retest
3 Internal consistency
4 Rater agreement
Validity
It is the ability of an instrument to measure what it is intended to measure. It answers two questions:
1 what does the instrument measure?
2 How well does the instrument measure?
Parallel Forms
This method uses two tests that are identical in format and general content but in actual items use different ways of expressing the same question.
Ethics
It is a system of moral principles and values that establish appropriate conduct.
Code of Ethics
It can be defined as principles of conduct within an organization that guide decision making and behavior.
Laws
Law refer to actions passed by legislative bodies such as congress and state legislature and by local government units such as cities and countries.
Passage of Bill
1 Referral to a committee
2 Committee action
3 Subcommittee review
4 Mark up
5 Committee action report to a bill
6 Publication of a written report
7 Scheduling of floor plans
8 Debate
9 Voting
10 Referral to other chamber
11 Conference committee action
12
The Rule making Process
1 The rule is proposed
2 Public comment is invited
3 The final rule is issued
Amendment
The modification of the constitution or a law. Modification may be formal (written) or informal (unwritten).
Bill
A proposal presented to a legislative body for possible enactment as a law.
Public comment period
The time allowed for the public to express its views and concerns regarding an action of a regulatory agency.
Quorum
The number of members of an organization that have to be present before official business may be conducted.
Regulation
A rule or order issued by a government agency,often has the force of law. Interpretive bulletins distributed by government agencies are helpful in deciphering regulatory developments.
Resolution
A legislative measure limited in effect to either the congress or one of its chambers.
Veto
Action of cancelling or postponing a decision or bill.
Strategic business management
Processes and activities used to formulate HR objectives, practices, and policies.