Shared Flashcard Set

Details

HUMAN RESOURCES FINAL
Note cards fro human resources final
97
Other
Undergraduate 2
04/25/2011

Additional Other Flashcards

 


 

Cards

Term
Considerations for Compensation Decisions
Definition
Which factors determine salary ranges for jobs

Best ways to determine how much employees should be paid

How much pay should be guaranteed and how much based on incentive
Term
Total Compensation
Definition
Monetary rewards
Direct compensation includes hourly wages, salaries, incentives, merit raises, bonuses, and commissions
Nonmonetary rewards
Indirect compensation includes health care benefits, vacations, lunches, training, etc.

“Total Rewards” equals the total compensation package employees receive
Term
Equity Theory
Definition
Employees compare their input (work effort) and outcomes (wages) to others in similar situations

Employees are motivated to work harder when compensation is at the right level for the work performed

When employees are faced with “inequity” they will try to resolve it by:
Stop working as hard as they once did
Rationalizing why there is inequity
Quit their jobs

Inequity can exist within a labor market or within the firm itself
Term
Internal Alignment
Definition
Each job in a company is valued appropriately relative to every other job
Relative worth hierarchy is established
Pay rates are assigned to jobs
Process is done through job evaluation:
Job ranking
Job classification
Point factor
Factor comparison
Term
Job Ranking
Definition
Reviewing job descriptions and listing jobs in order from highest to lowest worth to company

Fairly hard to do in a large company

Need to create a framework to process the information found in all the job descriptions

Largely subjective
Term
Job Classification
Definition
Developing broad descriptions for groups of jobs that are similar in terms of tasks, duties, responsibilities and qualifications

Wage range is attached to each classification reflecting relative worth of the job in that classification

Sometimes managers want to reclassify jobs to give a particular employee a higher salary
Term
Point Method
Definition
Quantitative approach that uses a point value scheme resulting in a score for each job

Begins with identifying a set of factors for which the company is willing to pay—called “compensable factors”

Point manual contains description of each factor and what each degree of the factor represents

Job grade – grouping jobs with comparable points together to reflect the hierarchy of jobs within a firm
Term
Benchmark Job
Definition
A job that represents the range of the types of jobs in the company. These jobs need to be:
Stable over time in terms of their responsibilities
Well known and recognized
Clearly and concisely described
Accepted in the external labor market for setting wages
Currently at an appropriate wage rate

Scores for these jobs enable the company to compare other jobs to the benchmark jobs and determine which should be paid more or less
Term
Factor Comparison
Definition
Ranking benchmark jobs in relation to each other on factors like mental or physical requirements, skill, responsibility, and working conditions

Combines job ranking and the point method

Monetary rates are included, so as the market changes, it needs to be updated
Term
External Competitiveness
Definition
Ensures jobs are valued appropriately relative to similar jobs in the external labor market

Affects how attractive the firm is to potential employees

Also affects attitude and motivation of current employees
Term
Salary Surveys
Definition
Provides a systematic way to collect information about wages in the external labor market

Companies can conduct their own surveys or purchase survey data

Should look at companies in same industry and other industries that might be competing with you for employees

Should come from appropriate geographic labor market
Term
Job Pricing
Definition
Systematic process of assigning monetary rates to jobs so that internal wages are aligned with external wages in the marketplace

Begins with plotting results of salary survey for benchmark jobs

Market line, also know as wage curve, is drawn to represent relationship between job evaluation points and salaries paid for jobs

Plot actual salaries paid for benchmark jobs and compare them to results from market
Term
Company Pay Policy
Definition
If company’s wage curve is below or above the market wage curve, decisions have to made about whether to move wages or leave them as is

Firms can pay at the market level (follow), above the market (lead), or below the market (lag)

Companies paying below market will have a harder time attracting employees
Term
Pay Grades and Ranges
Definition
Jobs are grouped into job grades associated with a pay range

Each range has a midpoint, a minimum, and a maximum

Midpoints represents an employee who is fully qualified and functioning at an acceptable level of performance

Ranges will have overlap—the less overlap the more difference between jobs in each grade
Term
Broadbanding
Definition
Consolidates a large number of pay grades into a few “broad” bands, usually 3 to 10
Maximum pay for a particular band can be as much as 100-400% above the band’s minimum pay
Bands are usually wide enough that changes in the market don’t require adjustments as often
Term
Pay for Individual Performance
Definition
Initial pay based on person’s previous experience, education and negotiating skills

Increases can be tied to meeting goals, providing higher levels of service or results of performance appraisal

Red circled job — person being paid above the maximum wage for grade

Green circled job — person being paid below minimum of grade

Manager can adjust salary, reclassify or reevaluate the job
Term
Skill Based Pay and Knowledge Based Pay
Definition
Require employees to acquire certain skills or knowledge to receive an increase

Makes it clear what employees have to do to increase pay

May have more employees at higher levels of mastery than needed
Term
Competency Based Pay
Definition
Identify the competencies (attitudes, behaviors, abilities) employees need to master for pay raises

Managers need to outline valid process to determine achievement of competencies

Can lead to higher labor costs or employee frustration if they do not use additional training
Term
Direct Market Pricing
Definition
Collecting salary information from external labor market rather than starting with internal structure based on value of jobs
Works well as long as data is accurate
Term
Administering Compensation
Definition
Anyone making employee pay decisions needs to receive training
How pay rates are set and raises are determined
How frequently they are reviewed
What can and cannot be communicated to employees
Closed system — details about individual pay rates not made public except as required by law (high-ranking executives)
Open system — pay information is public (school districts with published pay scales)
Communication will enhance employees’ perceptions of equity and justice
Term
Organizational Demands and Compensation
Definition
Internal value of jobs — strategy will determine tasks, duties, and responsibilities a firm considers most valuable in achieving its goals
Ways to increase employee base pay:
Cost-of-living adjustments (COLAs) — keep salaries from lagging behind external market and to offset rise in prices of goods and services (uses CPI)
Merit increases — salary increase based on how well employee has performed
Variable pay — includes bonuses, commissions, and stock options
Term
Company Characteristics and Compensation
Definition
Company’s strategy will determine the mix of base and variable pay as well as monetary and nonmonetary awards

Small firms may pay less-than-market wages

Established firms have more resources to pay at or above market

Whether a job is a core job or a support position affects pay decisions
Term
Company Characteristics and Compensation (Continued)
Definition
Larger companies have more resources and more complex pay systems

Company culture establishes the priorities for the pay policy (i.e., if firm values teamwork, teamwork will be rewarded)

Managers need to communicate pay decisions and know what types of rewards are valued by employees
Term
Equity Versus Equality
Definition
Not all jobs require equal knowledge, skills, and abilities or have equal levels of responsibility

Employees need to understand the process (procedural justice) and believe the outcomes (distributive justice) of compensation decisions are fair

Employees’ perceptions of fairness in compensation is also impacted by relationship with manager

Salary compression — occurs when pay for jobs in external market rise faster than pay inside the organization (affected by shortage of workers)
Term
Environmental Influences
Definition
Labor supply — when market is tight, companies have to pay higher wages to attract and retain employees

Pay philosophy — decision to follow, lead, or lag the market
Leading the market helps a firm attract more qualified workers
A firm may lead the market in certain critical jobs

Pay practices need to match employee pay preferences

Technology enables easier collection of salary data
Term
Using Technology
Definition
Access or conduct online salary surveys
Simplify job evaluation and maintain compensation records
Collect timesheets and interface with payroll systems
Term
Globalization
Definition
Decisions need to be made about centralized or decentralized approach to compensation
Employees in companies with centralized approach are more satisfied
Employees see link between results and rewards and more internal and external equity

Laws and norms of countries will affect certain pay practices
Term
Globalization (continued)
Definition
Paying PCNs (parent country nationals) typically are kept “whole”
Use balance sheet approach—making adjustments for hardship, dangerous, or primitive assignments

U.S. companies have been criticized for paying low wages relative to American wages

Cost of living and minimum wage laws have to be taken into consideration to do comparison
Term
Ethics and Compensation
Definition
“What gets rewarded, gets done”

Sort-term goals that are easily manipulated will tempt employees to engage in unethical behavior

Living wage — providing a fair wage so that basic living needs can be met

Employers must pay the mandated minimum wage
Term
Equal Pay
Definition
Comparable worth — eliminating gender inequity in wages because jobs held by women have traditionally been underpaid relative to similar jobs held by men

Jobs that require similar levels of education and experience and have other characteristics in common should be paid a similar wage

Equal Pay Act requires equal pay for jobs that are substantially the same
Term
Compensation Regulations
Definition
Davis-Bacon Act — requires contractors of Federal government to pay workers wages and benefits equal to local prevailing wages and benefits

Walsh-Healey Act — requires contractors to pay federal minimum wage and 1.5 times the minimum over 40 hours worked in the week

Fair Labor Standards Act (FLSA) — regulates use of child labor, defines which workers must be paid the minimum wage, and stipulates pay rate for overtime work
Term
Regulations (continued)
Definition
Minimum wage — Federal minimum is $7.25 an hour as of July 2009, but each state has option of setting its own minimum www.dol.gov/esa/minwage/america

Exempt employees — do not receive overtime for hours worked in excess of 40 in a workweek
FairPay Overtime Initiative (2006) clarified which employees were eligible to be exempt and many jobs were reclassified
Term
Child Labor
Definition
Youth under the age of 16 can work on restricted basis

Youth 16 and older have no work-hour restrictions, but cannot work in hazardous jobs if they are under 18 including driving a motor vehicle, doing wrecking and demolition, or being exposed to radioactive substances
Term
Record Keeping
Definition
Employers must keep certain information on nonexempt employees including:
Name, address and Social Security Number
Birth date, gender, occupation
Hours worked
Rate of pay and overtime earnings
Additions and deductions from pay
Wages, (by pay period, dates, etc.)
Term
Motivation Theories
Definition
Reinforcement theory — people are likely to repeat actions that resulted in positive consequences

Goal setting theory — employees are likely to achieve challenging, specific, and attainable goals that they have set for themselves
Term
Motivation Theories (continued)
Definition
Expectancy theory — employees will make decisions about work actions based on which behaviors will lead to rewards
Expectancy — the degree to which employees believe they will be able to achieve the objective
Instrumentality — employees believe that achieving the objective will be rewarded
Valence — the degree of value employees place on different rewards

Agency theory — managers motivate their employees to act in certain ways by aligning their interest with the firm’s other stakeholders (e.g. the owners)
Term
Types of Incentive Plans Individual
Definition
Merit Pay Programs — employees receive a compensation adjustment based on results of their performance evaluation
Permanently raises base salary and company’s costs
Rewards employees for past performance
Might appear insignificant when spread out over 52 paychecks

Lump-Sum Merit Bonuses — one-time payment for performance not rolled into employees’ salaries
Term
Types of Incentive Plans Individual (Continued)
Definition
Piecework Incentive Plans — reward employees for future performance
Straight piecework plan —receive a certain rate of pay for each unit produced
Differential piecework plan —the pay received per unit produced changes at certain levels of output
Employees may focus only on aspects of job that get rewarded
Term
Spot Awards
Definition
Used to encourage employees to work toward specific outcomes

Manager gives awards “on the spot” when they see certain behaviors exhibited by employees

Can be cash or non-cash like merchandise, gift certificates, paid time off, etc.

Recognition programs like employee-of-the-month can also be used
Term
Sales Incentive Plans
Definition
Straight commission plan — pays an employee a percentage of the total sales they generate

Straight salary plans — employees receive a set compensation (employees may not be as motivated to sell as much as they can)

Mixed salary/commission plan —employees receive a lower base salary (50%) and the remaining is commission based
Term
Team Incentive Plans
Definition
All members are rewarded when team reaches or exceeds its target objectives

Potential for “free riders” who do not work as hard as others

Gain sharing plans —designed to help increase a company’s efficiency by rewarding teams that exceed productivity levels with a share of the gains realized
Term
Examples of Gain Sharing Plans
Definition
Scanlon plan — employees make suggestions for how to improve a firm’s productivity and the gains of that efficiency are shared with employees

Improshare plan — based on number of hours a firm expects to reach a certain level of output. If employees reach target in less hours, they receive an equal share of the savings
Term
Profit Sharing Plans
Definition
Company profits are shared with employees:
Deferred profit sharing — incentive money paid to employees is put into retirement account for them

Encourages collaboration and teamwork

Paid only when a company is doing well

May take a while for employees’ efforts to translate into profits
Term
Ownership Plans
Definition
Stock option plans — provides employees the right to purchase shares of their company stock at some established price for period of time

Broad-based stock option — plans that apply widely to a firm’s employees

Employee stock ownership plan (ESOP) —company contributes shares of its stock to a trust set up for its employees
Term
Ownership plans (Continued)
Definition
Leveraged ESOP — the trust borrows against the company’s future earnings and as debt is repaid, employees receive shares of stock from the trust

Mixed-level plans — multiple incentives that maximize the benefits of each plan and minimize the downsides of each
Term
How to make incentive plans effective
Definition
Link plan to firm’s strategic objectives

Have clear standards—predetermined levels of performance

Sample the full performance domain—all aspects of the job

Be attainable

Be easy to understand

Provide meaningful incentives

Evaluate regularly
Term
Strategy and Incentives
Definition
Affects what is rewarded
Focus of company should influence which tasks or behaviors are targeted
Low cost strategy may target efficiency for example

Which incentive plans are used
Strategy that requires cooperation and teamwork—group incentive may be appropriate
Cost-focused strategy may use gain sharing plan

May use multiple plans to motivate different employees
Term
Company Characteristics and Incentives
Definition
Stage of development and size of a company impact its incentive plans

Small firm may not have high merit pay but use incentives like profit sharing or bonuses to link individual performance to company performance

Incentive plan should be consistent with company values and culture
Term
Employees Acceptance of Incentives
Definition
If inconsistencies exist between the plan and company culture, it may result in decreased motivation

Extent to which employees are willing to embrace risks of incentives is influenced by cultural values of company

Perceptions of fairness are affected by standards of incentive plan (how realistic standards are)

Group incentives are impacted by “social loafing”—individuals exert less effort when their actions are combined with others on team
Term
Labor Force Trends and Incentives
Definition
Rewarding employees in ways that support and embrace a diverse workforce — spot awards given to managers who recruit and retain diverse employees

Types of rewards may prove more or less valuable depending on age of employees

Some individuals value non-financial incentives like time off or flexible scheduling

Learning and growth are more attractive than money for some employees
Term
Technology and Incentives
Definition
Technology influences management of incentives

Use of e-mail notices and administration of plans improves speed of recognition

Technology can reduce costs and enable firms to put more money into programs
Term
Virtual Workforce and Incentives
Definition
In order to more effectively track virtual employees, employers may rely on outcome-oriented incentive plans

Plans can be individual or team based
Term
Globalization and Incentives
Definition
Different units around the globe may have different objectives
Incentive targets may depend on a country’s infrastructure or social norms
Plans may be customized to fit different regions or countries
Term
Ethics Behavior and Incentives
Definition
Incentive systems must be designed to encourage ethical behavior

Plans should include “what” is achieved as well as “how” it is achieved

Sometimes short-term financial performance may encourage unethical behavior

Manager behavior must set an example for employees to follow
Term
Regulatory issues and incentives
Definition
Members of protected classes need to have equal access to incentives

Plans must be based on performance not on criteria that is illegal or discriminatory

Managers must take steps to ensure all employees have the opportunity to excel

Stock option backdating —potential problem when companies pick a date when stock is priced low to guarantee profits to executives
Term
Mandatory Benefits
Definition
Social Security

Workers’ compensation

Unemployment compensation

Family and medical leave
Term
Social Security
Definition
First social insurance program implemented in 1937

Purpose is to provide retired workers with continuous income after retirement

Later added provision to cover dependents and survivors, disabled workers, and health insurance for the elderly and disabled

Funded by payroll taxes shared by employer and employee (FICA)
Term
Unemployment Insurance
Definition
Provides temporary financial assistance to eligible workers who lose jobs through no fault of their own

Employers are required to pay taxes based on number of claims filed against them

Public employment offices pay out compensation up to 26 weeks

Unemployed workers are required to demonstrate that they are actively seeking reemployment
Term
Workers Comp
Definition
Provides cash benefits and medical care to workers when they suffer injuries or illnesses related to employment

Also provides survivor benefits to dependents of workers who die in work-related incidents

Covers medical care, permanent partial or permanent total disability, rehabilitation and training for new jobs

In most states, employers must have coverage regardless of number of people employed
Term
Voluntary Benefits
Definition
Health and Wellness
Life Management
Retirement
Term
Healthcare plans
Definition
Cost of health care benefits continues to increase as individuals live and work longer

Costs are often passed along to employees or result benefits cut

Traditional Plans — include fee for service, employees meet a deductible before plan pays for services

Managed Care Plans (HMOs) — third-party payers negotiate health care options for employee
Term
Healthcare (continued)
Definition
Preferred Provider Organizations (PPOs) — an employer negotiates with a network of health care providers for discounts

Point-of-service plan (POS) — employee can decide whether to use a managed plan, or go outside the plan and pay a higher deductible

Consumer-driven health plans (CDHPs) — employees can select a plan with a higher deductible, choose providers, and put money into health savings plan
Term
Healthcare 3
Definition
High-deductible health plans (HDHPs) —designed to cover major medical problems. Plans are less costly for employers and employees

Health savings accounts (HSAs) — provides a way for employees to pay for immediate health care expenses on a tax-free basis
Term
Health Reimbursement Accounts
Definition
Employer sets aside money for HRAs and can deduct costs on their taxes

Accounts are not portable, they remain with employer

Sometimes offered in conjunction with a high deductible health plan to control costs
Term
Self Funded Plans
Definition
Employers avoid having to pay premiums, taxes on premiums, and some of the state requirements for benefits

Employers use services of a third-party administrator to oversee plan

Plans offer employers more flexibility
Term
Prescription Drug Benefits
Definition
Companies usually offer a three-tier system: brand-name drugs, generic drugs, and drugs on a formulary list (drugs the insurance company has decided are the most cost-effective)

Another way to cut costs is through a mail-order service
Term
Vision and Dental Insurance
Definition
Dental coverage usually includes basic and major restorative care and orthodontia

Vision insurance provides network of optometrists and ophthalmologists usually for eye exams, glasses or contact lenses
Term
Employee Assistance Programs
Definition
Designed to help employees cope with mental health issues, substance abuse, and life challenges

Many now include legal services, child-care and elder-care options, budgeting and family counseling
Term
Disability Insurance
Definition
Short-term disability plans will pay half to two-thirds of employee’s salary for 13-26 weeks

Long-term disability begins after specified number of days (30-90) from time of a disability and pays a portion of employee’s salary until retirement age

Return-to-work programs get employees back on the job as soon as possible
Term
Other Benefits
Definition
Accidental death and dismemberment insurance (AD&D) — compensates employees or their families for loss of a body part or death

Life Management Benefits — helps employees achieve balance between home and work responsibilities (child-care, financial planning, paid time off, flexible work schedules, etc.)

Paid Time Off (PTO) — all paid time (vacation, sick days, personal leave, holidays) are grouped as one category—PTO
Educational Assistance — reimburses employees for tuition for approved classes if they achieve certain grades (up to a maximum amount)

Long-Term Care Benefits — provide assistance to aging, disabled, or ill persons for extended period of time

Life Insurance — provides financial protection for employee’s family upon their death

Financial Planning — educates employees on how to manage finances, save for retirement, etc.

Legal Services — provide employees with access to attorneys for assistance with estate planning, adoption, or for legal representation
Term
Retirement Benefits
Definition
Retirement benefits are protected by Employee Retirement Income and Security Act of 1974 (ERISA) which requires private employers to have written plans documenting benefits they provide, who is eligible, and how plans can be terminated
Pension Benefit Guaranty Corporation — not-for-profit organization created by federal government that insures defined benefit plans
Vesting — time required before employees own part or all of their retirement funds

Contributory plan — employer and employee both put money into retirement account

Noncontributory plan — employer puts funds into employee’s account

Defined benefit pension plan — provides annuity to eligible employees upon retirement
Defined contribution plans — amount of retirement income is based on how well the employee invested the money

401(k) plans — employees contribute to plan in pretax dollars and funds accumulate tax free until person retires

Cash balance plans — define the benefit a person receives upon retirement in terms of cash payout. “Credits” are based on a percentage of employee’s compensation

Pension Protection Act of 2006 — tightened rules on funding, administering, and terminating pension funds
Term
Other issues in benefits
Definition
Many companies are eliminating or limiting health benefits for retirees

Firms are doing a better job of communicating and educating their employees about benefits

Flexible benefit plans (cafeteria plans) —allow employees to choose which benefits they want from a menu based on a set amount of money or credits each employee receives
Term
OSHA (Occupational Safety and Health Act)
Definition
OSHA covers private-sector employers with its mission to “send every worker home whole and healthy every day”

Enforces safety and health regulations and provides education and compliance assistance

Has right to inspect businesses, issue citations and fines

Employers are responsible for following standards, notifying employees about them and handling complaints
Term
OSHA programs
Definition
Inspect imminently dangerous situations, fatalities and catastrophes, complaints, and high-hazard industries, in that order

Recognize employers who are committed to safe and healthy workplaces

Voluntary Protection Programs focus on establishing a relationship between OSHA and companies that have comprehensive safety and health programs
Term
Workplace Violence
Definition
Homicide is fourth-leading cause of fatal occupational injuries

Leading causes—contact with public, delivery of passengers, services, goods, working alone or in small groups, exchanging money, working with unstable/volatile persons
Term
Ergonomics
Definition
Designing workplace for safe and efficient completion of tasks

Includes height of chairs, visual distance from computer, lifting heavy objects

Guidelines developed for industry and task-specific activities
Term
Strategy and Total Compensation Package
Definition
Firms with low-cost strategy will minimize the amount spent on non-direct compensation

Firms with differentiation strategy offer higher levels of benefits

Smaller companies may offer more flexibility in benefits package

Government employees receive the highest level of benefits followed by employees working in education and large nonprofit sector
Term
What Benefits to Offer
Definition
Younger workers will have different benefit expectations like education and child-care

Older workers may be interested in long-term care insurance and retirement

Wellness programs and education may improve strength and flexibility of workers to prevent injuries
Term
Axioms for Effectively Managing Employees
Definition
No two companies are the same

There is no one best way to manage employees

Using the wrong practice, or using the right practice poorly, can cause more harm than good
Term
High Performing HR Systems
Definition
External alignment —managers select HR activities that help company meet its organizational demands, cope with environmental factors and comply with regulatory issues

Internal alignment —focuses on how well a firm’s employee management practices support one another
Term
External Alignment
Definition
Company’s strategy influences:

How jobs are designed

Workforce planning tactics

Recruitment and selection practices

Types of training and development

Performance evaluation methods

Decisions concerning compensation and benefits

Safety and wellness plans
Term
Internal Fit of HR Practices
Definition
Each decision influences other choices companies make about managing employees
Synergies occur when combined with other HR practices
Powerful connections occur when practices support and reinforce each other
Term
Aligning HR Systems with Employees’ Contributions
Definition
Gives the firm a competitive advantage
Companies need to understand how their employees add value
Term
Managing Employment Portfolio
Definition
HR systems may target a variety of employee contributions like:
Customer service
Productivity
Creativity
Quality
Safety
Term
Strategic Value
Definition
Employees contribute different things to their firms

As the strategic value of an employee’s contributions decreases, the potential return from his/her contributions diminishes

This is often when employers turn to external sources (outsourcing)
Term
Uniqueness
Definition
The extent to which contributions employees make are specialized or unique to a company and not readily available in the open market

Employers are more willing to invest in employees to realize those contributions

Transactional relationships — economic relationships that focus on both parties meeting the terms of the agreement they have with each other

Relational relationships — Involve much greater commitment to the individual by the company and vice versa
Term
Employment Portfolio
Definition
Strategic value of certain positions influences the following types of HR systems:

Commitment-based
Productivity-based
Compliance-based
Collaborative-based
Term
Core Employees (High Uniqueness – High Strategic Value)
Definition
Most likely to contribute directly to a firm’s core competencies based on their knowledge

Companies use a commitment-based HR system to manage these employees and invest in them for their long-term success

Firms may invest extensively in developing their competencies and empower them
Term
Job-Based Employees (Low Uniqueness – High Strategic Value
Definition
Do not contribute in a unique manner and are likely to be from the external labor market

Companies use a productivity–based HR system that involves standardized jobs and select people who can immediately contribute in these jobs

Focus is on efficiency and productivity improvements
Term
Contract Workers (Low Uniqueness – Low Strategic Value)
Definition
External workers who perform tasks that are neither strategically valuable nor unique

Companies use a compliance-based HR system that consists of preset rules, regulations, and/or procedures. The focus is on short-term productivity and efficiency.

Compensation of these workers are likely to be hourly wages
Term
Alliance Partners (High Uniqueness – Low Strategic Value)
Definition
Individuals who make unique contributions of limited value in terms of strategic impact

Companies use a collaborative-based HR system and turn to external labor on a long-term basis

Example of this type of employee is a consultant
Term
The HR Scorecard
Definition
Offers a way to evaluate your HR systems

To create an HR scorecard you need to:
Identify your firm’s strategic performance drivers
Evaluate your firm’s external alignment
Evaluate your firm’s internal alignment
Term
Identify Strategic Performance Drivers
Definition
Activities that enable a company to realize its source of competitive advantage
Low-cost leadership
Operational excellence
Increased productivity

Translate a firm’s strategic objectives into actionable activities—strategic performance drivers
Term
Evaluate Firm's External Alignment
Definition
Align primary HR activities with the source of firm’s competitive advantage
Translate strategic performance drivers into HR deliverables (how HR systems create value for a company)
Term
Evaluate Firm's Internal Alignment
Definition
Determine whether practices used for primary HR activities are helping or hurting the achievement of firm’s HR deliverables
When misalignments occur, managers can look for ways to improve company's HR deliverables
Term
Building a High Performing Organization
Definition
Continually assess the ability of your HR system to meet company’s changing needs

Reassess and redesign the practices used to manage employees

Customize an HR scorecard to be consistent, specific, and provide follow up

Identify the source of company’s competitive advantage
Term
High Performing Organization (Continued)
Definition
Determine which HR deliverables are necessary to achieve strategic performance drivers

Ensure all practices reinforce rather than counteract each other

Employees need a clear understanding of what they need to do to help their company succeed

Follow up will dramatically increase success
Supporting users have an ad free experience!