Term
| Study by the Gallup Organization - employee satisfaction and profitable, productive workplace |
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Definition
| 12 beliefs and outcomes such as profits, productivity, employee retention, and customer loyalty. Work groups that have positive attitudes are 50% more likely to achieve customer loyalty and 44& to produce above avg. profitablity. |
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Term
| Foundation for workforce measurement: LAMP model |
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Definition
Logic
Analytics
Measures
Process
= four critical components of a measurement system that drives strategic change and organizational effectiveness. |
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Term
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Definition
| The "story" that connects numbers and outcomes. EX: service-value profit framework |
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Term
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Definition
| Drawing Appropriate Conclusions from Data |
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Term
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Definition
| Getting the numbers right |
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Term
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Definition
| Creating Actionable Insights (influence process, education) |
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Term
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Definition
| actual costs (such as the accumulated, direct cost of recruiting) |
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Term
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Definition
| Does not deal directly with cost (usually expresssed in terms of time, quantity, or quality. In many cases indirect measures can be turned into direct measures. ex: time per interview into cost per interview. |
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Term
| Costs: Behavior costing, controllable costs, and uncontrollable |
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Definition
1. Behavior costing - An approach to assessing hr systems that focuses on dollar estimates of the behaviors of employees, measuring the economic consequences of their behaviors. (ASSIGNING DOLLAR AMTS/COSTS)
2. Controllable costs - Turnover cost due to "better salary" or "greater career development".
3. Uncontrollable costs - "death" or "poor health" or "spouse transfer" |
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Term
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Definition
Internal states that focus on particular aspects in the environment.
Cognition, Emotion, and Action |
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Term
| Attitude: Job satisfaction |
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Definition
| Attitudes towards pay, promotions, coworkers, supervision, and work itself |
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Term
| Attitude: Organizational Commitment |
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Definition
| A bond or linking of an individual to the organization that makes it difficult to leave. |
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Term
| Sears: Behavior costing using LAMP model |
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Definition
Top leadership believed there was a connection btwn. retail store employees attiudes and financial results but had no hard data to demonstrate it...
Created logic: based on the proposed connections btwn. employee attitudes, behaviors, customer responses, and financial outcomes.
Analytics & Measure: to test & refine the logic.
Process: Communicating results to business leaders & employees, holding store managers accountable, & continuing to measure and refine the model. |
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Term
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Definition
| failure of an employee to report for or to remain at work as scheduled. |
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Term
| Why are employees absent? |
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Definition
1. Personal illness
2. Family-related
3. Personal Needs
4. Entitlement Mentality
5. Stress |
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Term
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Definition
| (# of turnover incidents per period/Avg. workforce size) x 100% |
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Term
| Controllable turnover (avoidable) |
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Definition
voluntary on part of employee
-result of poor selection decisions
-result of failure to address job satisfaction/dissatisfaction issues |
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Term
| Uncontrollable turnover (unavoidable) |
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Definition
| involuntary (due to death, performance, spouse transfer, retirement). |
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Term
| turnover may be FUNCTIONAL |
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Definition
| employee's departure produces a benefit for the organization ex: low performers |
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Term
| Turnover may be DYSFUNCTIONAL |
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Definition
| Departing employee is someone the org. would like to retain ex: high performers |
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Term
| 3 categories of cost in turnover |
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Definition
1) Separation costs
2) Replacement costs
3) Training costs |
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Term
| Turnover costs: 1) SEPARATION COSTS (elements) |
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Definition
1) Exit interviews
2) Admin. functions related to termination (ex: payroll, termination of benefits)
3. Separation pay
4. Increased unemployment tax |
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Term
| Turnover costs: REPLACEMENT COSTS (elements) |
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Definition
1. Preemployment admin. functions (checking references)
2. Entrance interview
3. Testing
4. Staff meetings
5. Travel & moving expenses |
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Term
| Turnover costs: TRAINING COSTS (elements) |
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Definition
1. Informational literature (handbook)
2. Instruction in a formal training program
3. On-the-job training |
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Term
| Measuring reduced productivity in the learning period? |
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Definition
| Not possible to calculate accurately the dollar value of losss in productivity durign the learning period. |
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Term
| Cost of additional overtime to cover vacancy = |
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Definition
| Wages + Benefits X # of hrs. overtime |
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Term
| Cost of additional temp help = |
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Definition
| Wages + Benefits X Hrs. paid |
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Term
| Purpose of measuring total cost of turnover... |
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Definition
| is to improve mgmt decision-making. |
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Term
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Definition
| employer-sponsored benefit or working condition that helps an employee to balance work and non-work demands ex: child care benefits, maternity leave |
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Term
| Who adopts work-life programs? |
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Definition
| Larger organizations tend to adopt more policies related to individual support. |
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Term
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Definition
| IBM actively promotes flexibilty as a strategy for talent mgmt, employeee commitment (human capital outcomes), and boost financial/operational performance. |
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Term
| stock market outcomes to work-life initiatives (Working Mother 100 Best companies) |
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Definition
| Results reflect ASSOCIATIONS, not causation btwn. firms that adopt family-friendly work practices outperform in financial and stock market outcomes. |
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Term
| Indirect measures of training outcomes |
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Definition
| More common than direct measures. Converted into estimates of the dollar impact on traing...method known as utility analysis. |
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Term
| Training programs evaluated |
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Definition
| 18 programs where 8 used a control-group design: training was provided by 1 group and not provided to a second group. Remaining 10 program relied on pretest-posttest only design: control group was not used and performance of the trained group alone was evaluated before and after the training program. |
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Term
| Direct measures of training outcomes |
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Definition
value of training program expressed in terms of objective meausres of performance.
*Behavior-modeling program was positive effect on turnover. Contributed to cost savings and increased sales. |
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Term
| Best managers share 4 key behaviors |
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Definition
1) Select for talent: managers select talent needed for position and then find ppl. who fit the role.
2) Define the right outcomes
3) Focus on strengths
4) Find the right fit |
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Term
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Definition
| Length of time an observed training effect would need to be maintained in order to recover the cost of the training program. |
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Term
| How do we measure the impact of HR practices? |
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Definition
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Term
Cost control (doing it cheaper): increase operational activity
NAME TWO & EXAMPLES |
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Definition
DIRECT: capital, equipment, salary, benefits, training
INDIRECT: dept of equip, Overhead, lost productivity, Quality of work, new hire.. |
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Term
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Definition
| Doing things better ex: rewards (supports improved performance, better training, select better ppl.) |
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Term
| Attitudes: why should you care? |
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Definition
| Attitudes leads to your behavior |
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Term
| Behavioral costing at SEARS: Are employees attitudes related to customer behavior & co. profits? |
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Definition
-Customer service: ppl. who are more satisfied deliver better
-Turnover: More org. commitment
-Positive Recommendations
-Role in co. strategy |
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Term
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Definition
| Employee-customer-profit chain: as long as investment is less than the cost..you should do it! |
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Term
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Definition
-Started looking at long term incentives on TPI (total performance index)
-Not just profits but also employee perf. and attitudes
-Would this work in all types of org?
NO some have tried but need to use LAMP model |
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Term
History of HRM:
-1910s
-1920s
-1930s
-1940s
-1950s
-1970s
-1980s
-1990s |
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Definition
-1910s: Scientific Mgmt. (Federick Taylor: timed workers + selecting for efficiency)
-1920s: HR movement (Elton Hawthorne Studies: effects on lighting..work of productivity increased when lighting changed)
-1930s: Unions
-1940s: Selection Tests (US army)
-1950s: Personnel Depts.
-1970s: Record Keepers
-1980s: Strategic HRM
-1990s: Metric driven HRM |
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Term
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Definition
| Explicitly considering HR in the formulation and implementation of organizational strategies |
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Term
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Definition
1. Situation analysis
2. Forecasting demand for employees
3. Analysis of the supply for HR
4. Development of action plans |
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Term
Measuring Impact of HR practices (Metrics)?
-Employemnt
-Learning & Development
-Benefits
-Compensation
-Fair employment
-Labor relations
-Safety&Health
-Overall |
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Definition
1. Employemnt
-Cost per hire; orientation costs
2. Learning & Development
-Cost per employee
3. Benefits
-Healthcare costs
4. Compensation costs
5. Fair employment
-cost per complaint/litigation
6.Labor relations
7.Safety&Health
-Accident costs
-Citations/fines
8.Overall
-Turnover costs |
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Term
| What situation is Charlotte Health System facing (case)? |
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Definition
They must prove that they are a profit center through metrics.
-NEED clear direct measureable costs
---->start with direct and indirect
(How much does turnover cost an org?)
Visible:
-Training
-Separation
-Selection
-Relocation
-Bonuses
-Vacancy (temps)
Invisible/Reduced Prduction:
-Lost of productivity of vacant position
-Loss of tacit knowledge
-Other employee attitudes suffers (lost of productivity of other employees during vacancy)
-Loss of image/referals |
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Term
| Total Turnover cost can easily surpass annual salary |
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Definition
41% annaual salary of frontline employee
176% annual salary of IT professional
241% of middle manager |
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Term
| Total Turnover cost can easily surpass annual salary |
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Definition
41% annaual salary of frontline employee
176% annual salary of IT professional
241% of middle manager |
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Term
| Business Strategy vs. HR strategy |
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Definition
| Provides overall direction and focus for the organization as a whole whereas HR strategy is a set of priorities a firm uses to align its resources, policies, and programs with bus. plan |
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Term
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Definition
Differentiation from the market (strategy)
-Better customer service
-Making a case: VP of Finance
-Create HR scorecard: matching co's objective and is focused
-IMplement |
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Term
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Definition
1. Define business strategy
2. Demonstrate that HR is a strategic asset
3. Create strategy map
4. Identify what HR needs to do in order to support the strategy
5. Make sure hierarchy supports theh deliverables
6. Design measurment system (write up scorecard)
7. Implement |
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Term
| What 4 key metrics are used to access the performance of each operating company? |
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Definition
1. customer
2. operations
3. Human capital
4. Financial |
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