PHR Module 1: Strategic Management

Regulation

Rule or order issued by a government agency: often has the force or law.

Primary Search

Involves data that is gathered firsthand for a specific evaluation.

Normal Distribution

Expected distribution given a random sampling of people across a large population.

Qualitative Analysis

Based on research that uses open ended interviewing to explore and understand attitudes, opinions, feelings, & behavior.

HR Audit

Process to measure the effectiveness and efficiency of HR programs & positions.

Virtual Organization

Short term alliance between independent organizations in a potentially long term relationship to design, produce, and distribute a product.

Code of Ethics

Principles of conduct within an organization that guide decision making behavior.

Inventory

To an operations department, an organizations major assets after physical buildings and equipment.

Matrix Structure

Organizational structure that combines departmentalization by division and function to gain benefits of both.

Strategic Management

Processes and activities used to formulate HR objectives, practices, and policies.

Standard Deviation

Measure that indicates how much scores in a set of data are spread out around a mean or average.

Income Statement

Statement explaining revenues, expenses, and profits over a specified period of time, usually a year or a quarter.

Standards

For an operations department, provides the yardstick by which the amount and quality of output are measured.

Span of Control

Refers to the number of individuals who report to a supervisor.

Capacity

To an operations department, the ability to yield output.

Experiment

Research in which the researcher controls and manipulates elements of the research environment to measure the impact of each variable.

Short Term Objective

Milestones that must be achieved, usually within 6 months-1 year, in order to reach long term objectives.

Deductive Reasoning

Involves applying specific premises to a given situation to develop certain predictions about or understanding of the situation (Outside In).

Product

What an organization sells to make a profit.

Sample

Portion of a population to draw conclusions regarding an entire population.

Population

Group of persons or objects or a complete set of observations or measurements about which one wishes to draw a conclusion.

Gantt Chart

Project planning tool that graphically displays activities of a project in sequential order and plots them against time.

Mean

Average Score or value in a set of data.

Staff Units

Work groups that assist line units by performing specialized services, such as HR.

Public Comment Period

Time allowed for the public to express its views and concerns regarding an action of a regulatory agency.

Environmental Scanning

Process that surveys and interprets relevant data to identify external opportunities and threats.

Long-Term Objectives

Specific results, accomplished in 3-5 years, that an organization seeks to achieve in pursuing a mission.

Hypothesis

Specific, testable prediction that is derived from a theory and describes a relationship between two variables.

Validity

Ability of an instrument to measure what is intended to measure (accuracy).

Scheduling

To an operations department, the act of detailed planning; based upon incoming orders, order history, and forecast of future demand.

Strategic Planning (4 Phases) (FDIE)

Art and science of formulating, developing, implementing, and evaluation of cross-functional decisions that enable an organization to achieve its objectives. (F)ormulation, (D)evelopment, (I)mplementation, (E)valuation

Cost-Benefit Analysis (CBA)

Ratio that allows management to determine the financial impact particular activities and programs will have on a company's profitability.

Values

Describe what is important to an organization, dictate employee behavior, and create the organizations culture.

Secondary Research

Uses data already gathered by others and reported in various sources.

Ethics

System of moral principles and values that establish appropriate conduct.

Off shoring

Relocation of processes or functions from a home country to another country.

PERT Chart (PERT)

Project management tool used to schedule, organize, and coordinate tasks within a project. (P)rogram, (E)valuation, (R)eview, (T)echnique

Decentralization

Degree to which decision making authority is given to lower levels in an organization's hierarchy.

Amendment

Modification of the constitution of a law; may be either formal (written) or informal (unwritten).

Action Plan

Detailed steps a unit, department, or team will take in order to achieve short-term objectives.

Mission Statement

Specifies what a company does, who its customers are, and the priorities it has set in pursuing its work.

Zero Based Budgeting

Form of budgeting that requires that expenditures be justified for each new period and in which budgets start at zero.

Promotion

Techniques for communicating information about products to consumers.

Generation X

Group of people born roughly between the years of 1965 and 1980.

Liabilities

An organizations debts and other financial obligations.

Bill

Proposal presented to a legislative body for possible enactment as a law.

Human Resources Information Systems (HRIS)

Systematic tool for gathering, storing, maintaining, retrieving, and revising HR Data.

Balanced Scorecard (FCILG)

Measurement approach that provides an overall picture of an organization's performance as measured against goals in finance, customer service, internal business processes, and learning and growth.

Quantitative Analysis

Seeks to obtain easily quantifiable data on a limited number of measurement points.

Percentile

Specific point in a distribution of data that has a given percentage of cases below it.

Scientific Method

Research method in which certain factors or variables are manipulated and the results are examined.

Mid-Term Objectives

Serve a purpose similar to short-term objectives but are completed in one to three years.

Equity

Amount of owner's or shareholder's portion of a business.

Resolution

Legislative measure limited in effect to either the Congress or one of its chambers.

Sales

Business function responsible for selling an organizations product to the marketplace.

Incremental Budgeting

Form of budgeting in which the prior budget is the basis for allocation of funds.

Correlation

Measure that indicates the relationship between two variables.

Due Diligence

Process of conducting an intensive investigation of a corporation as one of the first steps in a pending merger or acquisition.

Scatter Diagram

Measure that indicates the relationship between data items using X & Y axes.

Supply Chain

Global network that delivers raw materials to end customers through an engineered flow of information, physical distribution, and cash., Global network used to deliver products and services from raw materials to end customers through an engineered flow of

Human Capital (KSE)

Combined knowledge, skills, and experience of a company's employees.

Reliability

Ability of an instrument to measure consistently.

Veto

Action of canceling or postponing a decision or bill.

Control

To an operations department, an after-the-fact evaluation of a company's ability to meet its own specifications and its customer's needs.

SWOT Analysis

Vehicle for collection information on an organization's current strengths, weaknesses, opportunities, and threats (within a company).

Functional Structure

Organizational structure that defines departments by what services they contribute to the organization's overall mission.

Assets

Financial, physical, and sometimes intangible properties an organization owns.

Quorum

Number of members of an organization that have to be present before official business may be conducted.

Marketing (4 P's)

Process of planning, pricing, promoting, and distributing goods and services to satisfy organizational objectives. Product, Price, Promotion, Place.

Break-Even Analysis

Analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the program.

Median

Point below which 50% of scores in a set of data lie.

Line Units

Work groups that conduct the major business of an organization.

Foreign Corrupt Practices Act (FCPA)

Prohibits American companies from making corrupt payments to foreign officials for the purpose of obtaining or keeping business.

Range

Distance between highest and lowest scores in a set of data.

Accounts Receivable

Money an organization's customers owe the organization.

Formula Budgeting

Form of budgeting in which an average cost is applied to comparable expenses and general funding is changed by a specific amount.

Gross Profit Margin

Measures the difference between what it cost to produce a product and the selling price.

Generation Y

Group of people born after 1980.

Human Resource Management (HRM)

Design of formal systems in an organization that ensure the effective and efficient use of human talent to accomplish organizational goals.

Divestiture

Sale by a company of an asset that is not performing well, that is not core to the company's business, or that is worth more as a separate entity.

Divisional Structure

Organizational structure in which divisions are separated by product, customer, market, or region.

Accounts Payable

Money an organization owes its vendors and suppliers.

Inductive Reasoning

Involves looking at a set of observations and designing a rule that characterizes or explains a pattern underlying the observations (Inside Out).

Gross Domestic Product

Estimate of the total value of goods and services produced in a country in a given year.

Mode

Value that occurs most frequently in a set of data.

Project (5 phases, CSPCE)

Series of task and activities that has a stated goal and objectives, a schedule with defined start and end dates, and a budget that sets limits on the use of monetary and human resources., series of tasks and activities that has a stated goal and objectiv

Centralization

Degree to which decision-making authority is restricted to higher levels of management in an organization.

Vision Statement

Vivid, guiding image of an organization's desired future.

Sandwich Generation

Portion of silent and baby boom generations that is simultaneously caring for their own children and one or more elderly family members.

Strategies

Provide the direction that enables an organization to achieve its long-term objectives.

Balance Sheet

Statement of a firm's financial position at a particular time.

Request for Proposals (RFP)

Written request asking contractors to propose solutions and prices that fit customer's requirement.

Regression

Measure that refers to the causal effect of one variable upon another.

Return on Investment (ROI)

Calculation that measures the economic return on a project or investment., Calculation that compares the money earned (or lost) on an investment to the amount of money being invested.

Organization's 4 Stages (IGMD)

Introduction, Growth, Maturity, Decline.

Mergers & Aquisitions (4 Steps) PDPI

Prepare, Due Diligence, Plan, Implement.

Worker's Adjustment Retraining Notification(WARN)

In the event of a lay-off, must give employees 60 day notice (required for companies with 100+ FT workers, or 50+ employees affecting 33% workforce)