Strategic Human Resource Management
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1. Stretegic Management: Taking the right steps to reach the goals fo the organization
2. Strategic Human Resource Management: The process by which Human Resources should align
with the organization's strategy and goals
3. What determines an organization's success?: It is determined by the decisions its employees
make and behaviors in which they engage
4. Where does competitive advantage of an organization come from?: From having
the appropriate systems for attracting, motivating and managing the organization's human resources
5. What does a strategic view of HR entail?: It involves considering employees as human assets and
developing appropriate policies and programs in order to invest in employees to increase their value to the organization
and the marketplace
6. Is Human resources and asset or a cost? (answer based on the HR value
chain): If the organization invests in its employees the employee outcomes which are attitudes and behaviors would
be toward working for the benefit of the company in order to meet goals which therefore increases the productivity of
these workers and also the quality of them. By having these top talents the expenses of the company would decrease
because they are meeting the goals of the company and revenues and profitability will increase. Also, by investing in
these employees the company would get top talents and this gives them a competitive advantage which increases the
stock price of the company
7. What are the sources of employee value:
8. What is employee value: Characteristics that can make a candidate more attractive in the marketplace
9. What are examples of employee value?: -Knowledge
-Skills (be specific what type of skills)
-Commitment and motivation
-Attitude and characteristics
-Be able to work in teams
-Experience
10. Why is it important to have an investment perspective toward HR/assets?: -
Because other physical assets can be easily imitated by competitors but your Human capital in a way that employees
, Strategic Human Resource Management
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become the company's competitive advantage. So, to have a competitive advantage you need to invest in your
employees
11. What is a critical thing that an organization has todo with the knowledge that
the employees have developed in their organization?: It needs to come up with strategies
to retain its employees and their knowledge bases until the new knowledge becomes owned by the organization itself
through diffusion throughout the organization rather than by the employee
12. What is a disadvantage of an organization not investing in their employees?-
: The organization might become less attractive to potential employees and may have a more difficult time retaining
current employees which causes inefficiency in the sense of downtime to recruit, hire and train new employees and
weakening of the organization's competitive position
13. What is a disadvantage of investing in employees?: They become more attractive in the
marketplace which has the risk that companies who are able to pay them more can take them away with all the
knowledge that you have invested in them because they do not have to invest the things that your company already
invested
14. What does the valuation of human assets have an impact on?: It has implications
for compensation, advancement, opportunities and retention strategies as well as how much should be invested in
each area for each employee
15. Which are the 5 main types of assets that organizations can use to aid in
performance and add value to operations?: 1. Financial assets/capital
2. Physical assets/capital
3. Market assets/capital
4. Operational assets/capital
5. Human assets/capital
16. What does financial assets include?: Equity, securities and investments and accounts receivable
17. What does physical assets include: Plant, land, equipment and raw materials
18. What does market assets include?: Goodwill, branding, customer loyalty, distribution networks,
product lines and patents, trademarks and copyrights
19. What does operational assets include?: Management practices, the structure of work and the
use of technology
20. What does human assets include?: Employee education levels, knowledge, skills, competencies,
work habits and motivation and relationships with coworkers, customers, suppliers, regulators and lenders
, Strategic Human Resource Management
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21. What does the organization's survival and renewal rely on?: The right size and mix of
human capital and a balance of short-term needs to reduce or restructure costs with a clear strategy for the future
22. What are HR practices directly related to?: Profitability and market value
23. What is the primary reason for profitability?: Effective management of human capital
24. The HR value chain:
25. What is one problem with metrics regarding human capital?: There are no "standard"
metrics or measures of human capital
26. What are some common HR metrics?: -Absence rate
-Cost per hire
-Health care costs per employee
-Human capital return on employee
-Profit per employee
-Training return on investment
-Turnover costs
-Turnover rate
-Vacancy cost
27. What are the calculations of Human Capital Measures?:
28. HR operations on the basis of three metrics:: -Employee retention and turnover
-Corporate morale
-Employee satisfaction
29. What is the mercer model of measuring HR impact?: -Identify problem HR can impact
-Calculate actual cost of problem
-Choose HR solution that addresses problem
-Calculate cost of solution
-Calculate value of improvement 6 to 24 months after implementation
, Strategic Human Resource Management
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-Calculate specific return on investment
-ROI in human assets often not realized until some time in the future
30. What are the factors influencing an organization's investment orientation?-
: -Management values
-Attitude toward risk
-Nature of employee skills
-Utilitarianism
-Availability of outsourcing
31. What are the characteristics of an investment-oriented organization?: -Sees
people as central to mission & strategy
-Mission statement & strategic objectives espouse value of human assets in achieving goals
-Management philosophy encouraging development & retention of human assets
-Does not treat human assets in same ways as physical assets
32. Investment orientation factors: -Senior management values & actions
*Managers need "investment orientation" toward
people
-Attitude toward risk
*Investment in human resources inherently riskier
*Human assets never absolutely "owned"
-Nature of skills needed by employees
*The more marketable employee skills, the riskier the
firm's investment in skill development
-Utilitarian
*Attempt made to quantify employee worth through
cost-benefit analysis
*"Soft" benefits of HR programs difficult to objectively
quantify
-Availability of outsourcing
*Given availability of cost-effective outsourcing,
Study online at https://quizlet.com/_93msoc
1. Stretegic Management: Taking the right steps to reach the goals fo the organization
2. Strategic Human Resource Management: The process by which Human Resources should align
with the organization's strategy and goals
3. What determines an organization's success?: It is determined by the decisions its employees
make and behaviors in which they engage
4. Where does competitive advantage of an organization come from?: From having
the appropriate systems for attracting, motivating and managing the organization's human resources
5. What does a strategic view of HR entail?: It involves considering employees as human assets and
developing appropriate policies and programs in order to invest in employees to increase their value to the organization
and the marketplace
6. Is Human resources and asset or a cost? (answer based on the HR value
chain): If the organization invests in its employees the employee outcomes which are attitudes and behaviors would
be toward working for the benefit of the company in order to meet goals which therefore increases the productivity of
these workers and also the quality of them. By having these top talents the expenses of the company would decrease
because they are meeting the goals of the company and revenues and profitability will increase. Also, by investing in
these employees the company would get top talents and this gives them a competitive advantage which increases the
stock price of the company
7. What are the sources of employee value:
8. What is employee value: Characteristics that can make a candidate more attractive in the marketplace
9. What are examples of employee value?: -Knowledge
-Skills (be specific what type of skills)
-Commitment and motivation
-Attitude and characteristics
-Be able to work in teams
-Experience
10. Why is it important to have an investment perspective toward HR/assets?: -
Because other physical assets can be easily imitated by competitors but your Human capital in a way that employees
, Strategic Human Resource Management
Study online at https://quizlet.com/_93msoc
become the company's competitive advantage. So, to have a competitive advantage you need to invest in your
employees
11. What is a critical thing that an organization has todo with the knowledge that
the employees have developed in their organization?: It needs to come up with strategies
to retain its employees and their knowledge bases until the new knowledge becomes owned by the organization itself
through diffusion throughout the organization rather than by the employee
12. What is a disadvantage of an organization not investing in their employees?-
: The organization might become less attractive to potential employees and may have a more difficult time retaining
current employees which causes inefficiency in the sense of downtime to recruit, hire and train new employees and
weakening of the organization's competitive position
13. What is a disadvantage of investing in employees?: They become more attractive in the
marketplace which has the risk that companies who are able to pay them more can take them away with all the
knowledge that you have invested in them because they do not have to invest the things that your company already
invested
14. What does the valuation of human assets have an impact on?: It has implications
for compensation, advancement, opportunities and retention strategies as well as how much should be invested in
each area for each employee
15. Which are the 5 main types of assets that organizations can use to aid in
performance and add value to operations?: 1. Financial assets/capital
2. Physical assets/capital
3. Market assets/capital
4. Operational assets/capital
5. Human assets/capital
16. What does financial assets include?: Equity, securities and investments and accounts receivable
17. What does physical assets include: Plant, land, equipment and raw materials
18. What does market assets include?: Goodwill, branding, customer loyalty, distribution networks,
product lines and patents, trademarks and copyrights
19. What does operational assets include?: Management practices, the structure of work and the
use of technology
20. What does human assets include?: Employee education levels, knowledge, skills, competencies,
work habits and motivation and relationships with coworkers, customers, suppliers, regulators and lenders
, Strategic Human Resource Management
Study online at https://quizlet.com/_93msoc
21. What does the organization's survival and renewal rely on?: The right size and mix of
human capital and a balance of short-term needs to reduce or restructure costs with a clear strategy for the future
22. What are HR practices directly related to?: Profitability and market value
23. What is the primary reason for profitability?: Effective management of human capital
24. The HR value chain:
25. What is one problem with metrics regarding human capital?: There are no "standard"
metrics or measures of human capital
26. What are some common HR metrics?: -Absence rate
-Cost per hire
-Health care costs per employee
-Human capital return on employee
-Profit per employee
-Training return on investment
-Turnover costs
-Turnover rate
-Vacancy cost
27. What are the calculations of Human Capital Measures?:
28. HR operations on the basis of three metrics:: -Employee retention and turnover
-Corporate morale
-Employee satisfaction
29. What is the mercer model of measuring HR impact?: -Identify problem HR can impact
-Calculate actual cost of problem
-Choose HR solution that addresses problem
-Calculate cost of solution
-Calculate value of improvement 6 to 24 months after implementation
, Strategic Human Resource Management
Study online at https://quizlet.com/_93msoc
-Calculate specific return on investment
-ROI in human assets often not realized until some time in the future
30. What are the factors influencing an organization's investment orientation?-
: -Management values
-Attitude toward risk
-Nature of employee skills
-Utilitarianism
-Availability of outsourcing
31. What are the characteristics of an investment-oriented organization?: -Sees
people as central to mission & strategy
-Mission statement & strategic objectives espouse value of human assets in achieving goals
-Management philosophy encouraging development & retention of human assets
-Does not treat human assets in same ways as physical assets
32. Investment orientation factors: -Senior management values & actions
*Managers need "investment orientation" toward
people
-Attitude toward risk
*Investment in human resources inherently riskier
*Human assets never absolutely "owned"
-Nature of skills needed by employees
*The more marketable employee skills, the riskier the
firm's investment in skill development
-Utilitarian
*Attempt made to quantify employee worth through
cost-benefit analysis
*"Soft" benefits of HR programs difficult to objectively
quantify
-Availability of outsourcing
*Given availability of cost-effective outsourcing,
