Business Management and Strategy

Flashcards by jkim05, updated more than 1 year ago
Created by jkim05 over 6 years ago


PHR (Business Management & Strategy) Flashcards on Business Management and Strategy, created by jkim05 on 01/18/2015.

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Name some External Business Environment factors (5) 1.) Technological Developments 2.) Industry Changes 3.) Economic Environment 4.) Labor Pool 5.) Legal/Regulatory Activity
Internal Org: Sole Proprietorships Single owner who is the final authority for all business decisions. All profits and liability owned by owner.
Internal Org: Partnerships Owned by two or more people who share final authority and are jointly liable for business. Profits are split according to ownership shares.
Internal Org: General Partnership (GP) Partners share responsibility for managing business
Internal Org: Limited Partnership (LP) aka Limited Liability Partnership (LLP) Partners are involved as investors and have little input into daily operations (i.e. law firms, medical clinics)
Internal Org: Joint Venture (JV) Similar to a GP but is formed to manage a specific project or for a limited time frame.
Internal Org: Corporations Entities defined by: 1.) Liability is limited to assets owned by corporation. 2.) Life of corporation can extend beyond life of original owner 3.) There is a central mgmt structure 4.) Ownership transferred freely by selling stock
Internal Org: Limited Liability Company (LLC) Cross between GP and Corporation. Provides owners with liability protection with fewer operating restrictions. *must have only 2 of 4 corporation characteristics
Org. Functions: Production & Operations Production: process by which businesses create product or service. Operations: encompasses all activities necessary to product goods/services.
Production & Operations: Capacity How much product/service can we produce with materials, labor, and equipment (aka input).
Production & Operations: Production Layout Way in which goods/services will be produced (i.e. assembly design or plan for audit)
Production & Operations: Scheduling Schedule to make products/services available during times of peak customer demand
Production & Operations: Inventory Management Cost of inventory and need to fill orders promptly. Just in time (JIT) inventory - order smaller more frequently
Production & Operations: All Activities 1.) Capacity 2.) Production Layout 3.) Scheduling 4.) Quality Mgmt 5.) Inventory Mgmt 6.) Technology 7.) Facility Location 8.) Cost Control
Org. Functions: Sales & Marketing Sales: near term to transfer goods/service from business to customer. Marketing: Long term function to promote/distribute products.
Org Functions: Marketing 4 P's 1.) Product - purpose, look, customer service reqs 2.) Price - right price point 3.) Placement - where to sell 4.) Promotion - how to advertise/sell
Org. Functions: Research & Development (R&D) Team that designs new product offerings and tests.
Org. Functions: Finance & Accounting Team that manages flow of money in and out of organization. Finance: Analyze financial needs/info Accounting: Record financial transactions
Org. Functions: Information Technology (IT) Team managing voicemails, computer networks, software, websites, and Internet
Org. Life Cycle: Startup Phase - Lack of funding - EEs wear many hats - Little training - Lower comp - Outsourcing - Close mgmt to EE relationships
Org. Life Cycle: Growth Phase - More mgmt personnel - Competitive comp & benefits - Lack of Infrastructure - Decreased mgmt to EE relationships *A lot of firms acquired by others or collapse in this phase
Org. Life Cycle: Maturity Phase - Ample resources - More bureaucracy - Reduced hiring - Training & development for EEs - Better comp & benefits for Executives
Org. Life Cycle: Decline Phase - Inefficiency & bureaucracy - Workforce reduction / close facilities - Cost cutting *need to reinvigorate by new products or redesign *many firms close or get acquired
Strategic Planning Systematic way of setting direction of firm and developing tactics and operational plans.
What period of time do Long-Range, Mid-Range, and Short-Range plans cover? Long-Range: 3-5 yrs Mid-Range: 1-3 yrs Short-Term - 12 months
What are the 5 steps involved in strategic planning? 1.) Pre-planning 2.) Environmental Scan 3.) Formulate Strategy 4.) Implement Strategy 5.) Evaluate Strategy & Make Adjustments
What should the executive team do to help guide the long term development of the organization. Create a vision and core values statement 1.) Vision Statement - goal, clients 2.) Mission Statement - how to achieve goal 3.) Core Competencies - things we do best 4.) Corporate Values - firm standards
What is the purpose of developing corporate goals? To describe how the organization will achieve goals set forth by the vision and mission statement.
What is the SMART model? Method for determining corporate goal. - Specific - details - Measurable - method for determining success - Action-Oriented - actions to be taken - Realistic - achievable goal - Time-based - include time frame
What are the 2 steps that need to be developed during the Strategy Implementation stage? 1.) Develop tactical goals - what will be accomplished to achieve goal 2.) Develop action plan - break down tactical goals by individual, team, group
What does HCMP stand for? Human Capital Management Plan
What purpose does the HCMP serve and what 4 questions need to be answered to aid successful results? Provide strategic planning for HR. 1.) Where are we now? 2.) Where do we want to be? 3.) How will we get there? 4.) How will we know when we arrive?
What are the 5 steps in developing an HCMP plan? 1.) HR statement of strategic direction 2.) Desired results or goals 3.) Objectives 4.) Action plans 5.) Communication plan 6.) Measurement
What is Human Capital Projecting? Budgetary activity in which HR attempts to measure value of resources considering below factors: - Skills of workforce - Plan development - In-house vs. outsourcing - Implementation costs - ROI in HR
What is a Centralized Organization? When decision making is concentrated at higher levels of organization.
What is Decentralized Organization? When decision making authority is delegated to lower levels.
What is the difference between Line and Staff Functions? 1.) Line = business functions that make decisions about operating needs 2.) Staff = HR & Finance, teams that advise line managers
What is Span of Control? The number of employees that one manager directly supervises.
What are the 4 basic management functions to ensure strategies and plans are implemented? 1.) Planning 2.) Organizing - structure for EEs to complete work 3.) Directing - build relationships with EEs 4.) Controlling - mgrs ensure plans are implemented.
What is the purpose of a Strategic Relationship? To develop corporate buy-in between Stakeholders (employees) and Shareholders (managers) and HR that will help HR achieve goals.
What is an Internal Relationship? Relationships developed with stakeholders and shareholders in the firm.
What is an External Relationship? A network of individuals whose work influences or intersects with an organization's goals. (ie. brokers, recruiting firms)
What is an HR BPO? A Business Process Outsource provider that provides an HR service to a firm. (ie payroll, benefits admin)
What is Corporate Responsibility? A business behavior focused on building external strategic relationships.
What is Sustainability? A behavior that doesn't deplete resources used to achieve an outcome.
What is Change Management? Method of managing impact of change to an organization.
What are 5 examples of structural changes to an organization? 1.) Re-engineering - simplify processes 2.) Corporate Restructuring - change units 3.) Workforce Expansion 4.) Workforce Reduction - aka Reductions in Force (RIF), Downsizing, Rightsizing 5.) Mergers and Acquisitions
What is a Merger? When two or more organizations are combined into a single entity with the goal of leveraging assets of both into a more successful entity.
What is an Acquisition? When one organization, generally a corp, purchases or trades stock to gain controlling interest in another.
What information do HR professionals provide during the due diligence process of an M&A? 1.) Documents 2.) Compensation 3.) Policies and procedures 4.) EEO Compliance 5.) Legal Compliance
What is a Divestiture? When a Company Asset such as a product line, division or another part of the organization is sold or disposed of.
What is Offshoring? The process of moving production or service process to other countries in an effort to reduce costs.
What is an ERM? Enterprise Risk Management. Practice of forecasting possible risks to the organization and taking steps to mitigate impact.
What is the purpose of HR Audit? To identify areas that may be out of compliance with legal requirements or are in need of updating.
What HR information should be audited? - Hiring Statistics - Recruiting Sources - Data Security - I9 Forms - Harassment Claims
What does an EPLI policy provide coverage against? Sexual harassment, discrimination, wrongful discipline, etc. claims.
What purpose does an Employee Handbook serve? Protect employer from risks pertaining to sexual harassment, safety, wages, etc.
What is the federal legislative process? 1.) Member of Congress sponsors bill and presents to House & Senate 2.) Committee reviews bill 3.) Bills deemed likely to pass are reviewed by subcommittee 4.) Subcommittee makes changes (marking up bill) if they deem necessary
What is the federal legislative process? (cont.) 5.) Subcommittee votes to return bill to full committee, if not it dies 6.) Committee votes on whether to present to full body 7.) Full written report must be prepared 8.) Members present, debate & vote
What is the federal legislative process? (cont.) 9.) If fully body passes bill, bill must be sent to other body for same process 10.) If bill passes second body, differences between two bills are reconciled at conference 11.) President receives bill to sign, veto, or fail to sign.
What is the federal legislative process? (cont.) Congress can override veto by 2/3 vote of quorum in each house. If failure to sign, bill can become law in 10 days if Congress is in session. If Congress adjourns before 10 day period, the bill won't become law (pocket veto)
What are 3 types of Administrative Laws that impact the HR profession? 1.) Agency rules & regulations 2.) Agency orders 3.) Executive orders
What is OSHA and why was it developed? Occupational Safety and Health Administration develops and enforces safety of workplaces.
What does Congress' legislation require and empower federal agencies to do? Develop enforcement regulations.
What is the Federal Register and how is it used? Official daily publication for rules, proposals, notices of federal agencies and Office of the President. Publication method for new rules/regulations. Public has opportunity to comment. Upon completion of comment period, rules take effect no less than 30 days.
What federal agencies have the power to order compliance with federal laws in courts known as administrative law courts? NLRB and EEOC
What is an ALJ? Administrative Law Judge
What do ALJ's do? Preside over cases brought to them by the NLRB and EEOC. Decisions are published in Federal Register.
What is an Executive Order? Type of administrative law issued by the President and become law after being published in Federal Register for 30 days.
What is Lobbying? An activity in which anyone can participate to influence new laws and regulations.
What does the legislative affairs committee (LAC) do for SHRM? Monitor and provide information on proposed changes to employment related legislation and regulation as well as coordinate lobbying efforts.
What is Corporate Governance? Various influences and processes that impact the way a corporation is managed and the relationship among stakeholders, shareholders, board of directors, and management.
What are Shareholders? Owners of a corporation.
What are a Board of Directors? Members are elected by shareholders to represent shareholders' interests with management. Inside director: Operational responsibilities Outside director: not employed
What is Fiduciary Responsibility? An obligation to actin the best interests of the shareholders by making decisions that benefit the organization over decisions that benefit them personally.
What's the SOX and when was it established? Sarbanes-Oxley Act 2002
What did the SOC establish? - Public Company Accounting Oversight Board (PCAOB) - New standards to ensure independence of auditors - Standards for corporate responsibility - Required CEOs and CFOs to reimburse company for incentive/equity based compensation - Prohibited insider trading during pension fund blackout periods - Established ethical requirements for sr. financial officers - Established criminal penalties for officials that defraud shareholders - Protect employees who report misconduct
What is a Code of Ethics? Statement of ideal standards that an organization is committed to uphold in its business practices.
What is a Code of Conduct? Statement of behaviors that the organization expects from employees.
What are the 4 elements to a Prima Facie violation? 1.) Employee engaged in protected activity 2.) Employer knew or suspected that employee was engaged in protected activity 3.) Employee suffered unfavorable employment action 4.) Sufficient circumstances existed to infer that a contributing factor to the unfavorable action was the employee's participating in the protected activity
What is the process for filing Retaliation Complaints? 1.) File within 90 days of retaliatory action 2.) If OSHA fails to issue final order within 180 days of filing, employee may file suit with US district court. 3.) OSHA seeks to reach a settlement 4.) OSHA can order reinstatement, back pay, benefits, and other actions (ie attorney's fees and other costs)
What purpose does an Ethics Officer serve? Responsible for ensuring ethical business. Prepares report to executive team on ethical issues in organization.
What is a Balanced Scorecard? Developed by Robert Kaplan and David Norton Management tool tying outcomes of departments together in one measurement system.
What are 4 tactical accountability measures for HR in business? 1.) HR expenses as a % of operation expenses 2.) HR expenses as % of total revenue 3.) Ratio of total employees to HR staff 4.) HR dept expenses per employee
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