Day 12 Function of Management PDF

# Function of Management The 4 functions of management are: * Planning * Goals & objectives * Plans * Monitoring * Comparisons * Action * Organizing * Organization design * Culture * Social networks * Leading * Leadership * Communication * Group behavio...

# Function of Management The 4 functions of management are: * Planning * Goals & objectives * Plans * Monitoring * Comparisons * Action * Organizing * Organization design * Culture * Social networks * Leading * Leadership * Communication * Group behavior * Motivation * Controlling * Systems/Processes * Strategic human resources # Inductive Reasoning vs Deductive Reasoning ## Question "It was a union member who filed the ULP we are currently grappling with -this validates my premises that it is always union members who file ULPs". This statement best describes: * a. grievance * b. inductive reasoning * c. violation of the fair representation doctrine * d. deductive reasoning ## Answer **b. inductive reasoning** Inductive reasoning uses a specific observation to draw a general conclusion. **Example:** "Harold is a grandfather. Harold is bald. Therefore, all grandfathers are bald." ## Deductive reasoning Deductive reasoning starts out with a generalization that follows a process to reach a specific, logical conclusion. **Example:** "All men are mortal. Harold is a man. Therefore, Harold is mortal." # Delphi Technique vs NGT ## Delphi Technique * Participants are anonymous, physically distant, never meet * Communication is by written questionnaires, with feedback from the monitoring staff ## NGT * Participants become acquainted, meet face-to-face around a table * Communication is direct between participants # Span of Control, Chain of command and Capacity ## Span of control This refers to the number of individuals who report to a supervisor. ## Chain of command This is the official hierarchy of authority that dictates who is in charge of whom and of whom permission must be asked. ## Capacity An organization’s ability to yield output and produce with available materials. # Business Case A business case provides justification for undertaking a project, program or portfolio. It evaluates the benefits, costs, and risks of alternative options and provides a rationale for the preferred solution. # Line units and Staff units ## Line Units Work groups that conduct the major business of an organization. Examples - Production, Operation, Sales and Marketing. ## Staff units Work group that supports the line units. Examples include HR, Finance, Admin. # Key Strategic Decision for HR ## Question What is the key strategic decision HR must help global organizations make? * a. Determine which of the Perlmutter EPRG model to be implemented for organizational expansion * b. Considerations on push factors and pull factors to enter into new markets * c. Balance between global integration and local responsiveness. * d. Determine how challenges of entering international businesses can be solved by company structures ## Answer **c. Balance between global integration and local responsiveness.** The key strategic decision HR must help global organizations make is to find a balance between global integration (which leads to standardization and consistency) and local responsiveness (which leads to flexibility and adaptability). # Shared Value and Triple Bottom Line ## Shared Value This is in the context of social responsibility: Policies and practices that enhance the competitiveness of a company while also advancing the economic and social conditions of the communities in which it operates. Shared value focuses on connections between societal and economic progress. ## Triple bottom line What are the components of the Triple Bottom Line? * Financial * Social * Environmental performance (People, Planet, Profit) # Strategic Drift Strategic Drift is a gradual decline of competitive ability that results in the failure of an organization to recognize and respond to changes in the business environment. # Corporate Social Responsibility vs Creating Shared Value ## Corporate Social Responsibility (CSR) * Addressing societal needs and challenges by giving back + doing no/less harm * Discretionary or in response to external pressures, no relation with competitiveness * Separate from profit maximizing, philanthropy * Agenda determined by external factors and often personal or departments' preference * No real influence on innovation, other than incremental * Operational and tactical issue * Scalable, but from cost perspective * Seen as costs and legitimization of operations for investors ## Creating shared value (CSV) * Addressing societal needs and challenges with a business model * Doing well by doing good * Integral to competing: propels competitive advantage in new, unlocked markets * Integral to profit maximizing * Agenda company, sector and market specific * Initiates radical innovation and incremental innovation at scale * Strategical priority, at the heart of business * Scalable, with profit increasing * Seen as commercial opportunities for investors # Short-term goal example ## Question The HR Department of an oil and gas corporation intends to create short-term goals. An example of a short-term goal is all of the following except? * a. Action plan * b. SMART tactical goal * c. Work instruction * d. Human capital management plan ## Answer **d. Human capital management plan** A human capital management plan refers to the development of strategies to recruit the best available talent, develop career plans for employees, mentor and coach the employees, motivate employees to deliver their best at all times, and develop performance management strategies. It is HR’s strategic plan. **Note** that SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic, and Timely. It is used to guide goal-setting for short-term goals as well as long-term goals. # Matrix Organizational Structure ## Question A typical matrix organizational structure? ## Answer Groups employees into two ways simultaneously to maximize the rate at which different kinds of products can be developed # Matrix Structures Group activities vertically by function and horizontally by product or project. # Pitfalls of a Differentiation Strategy ## Question Which of the following is a potential pitfall of a differentiation strategy? * a. Lack of parity on differentiation. * b. The opportunity for revenue growth through brand extensions. * c. Too high a price premium. * d. Uniqueness that is not easily imitated. ## Answer **c. Too high a price premium.** A differentiation strategy is an approach where businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. The main objective of implementing a differentiation strategy is to increase competitive advantage # Board of Director's Roles ## Question Members of the board of directors are supposed to be agents for? ## Answer **Stockholders** ## Question Which of the following is a major function of the board of directors of a company? ## Answer Aligning corporate strategy with stockholder interests. # Offshore Outsourcing ## Question The Tepid corporation has made a corporate decision to outsource a number of services to an offshore location. The services are supply chain management, accounting, customer support, marketing, and payroll. Which of the following is an appropriate action for HR to recommend to guarantee due diligence in the outsourcing process? * a. Confirm the business case to outsource these services has sufficient evidence of corporate benefits in comparison with risk elements. * b. Determine an ideal methodology (positional view or resource-based view) based on corporate strategy and legal compliance requirements. * c. Carry out an environmental scan inclusive of a SWOT analysis and PESTLE analysis of the offshore company and its location. * d. Take a transnational approach that balances the need for standardization with the benefits of local responsiveness. ## Answer **a. Confirm the business case to outsource these services has sufficient evidence of corporate benefits in comparison with risk elements.** Offshore Outsourcing is a strategic practice in which a business hires a third-party supplier to perform work in a nation other than the one in which the hiring business primarily conducts its operations. **Note:** that it is imperative a business case is utilized as it provides decision makers with a management tool for evidence-based and transparent decision making. *A business case provides justification for undertaking a project or program. It evaluates the benefit, costs and risks of alternative options and provides a rationale for the preferred solution.* # Human Resource in Organisation Life Cycle ## Question In which phase of the organization life cycle would a human resource professional be more likely to hire a less experienced personnel? ## Answer **Maturity stage.** # Resource-based theory of the firm The resource-based theory of the firm claims that an organization's competitive advantage is determined by its? **Core capability** # Project Management Processes What are Project Management processes? * Initiating * Planning * Executing * Monitor and controlling * Closing # Competition and Resource based views ## Competition View of Strategy vs. Resource Based Views * Positioning * A firm should think about positioning itself in its industry is a way that enables it to achieve competitive advantage. * Strategy can be seen as the search for strategic fit with the business envipperrent. * Porter's 5 Forces * Core Competencies * The possession of valuable, rare, inimitable, and non-substitutable resources is a more reliable key to competitive success. * Competitive advantage of an organisation is explained by the distinctiveness of its capabilities. ## Resource-based View of the Firm * **Resource-based View** * Firm as a bundle of resources and capabilities. * Distinct resources and capabilities underpin competitive advantage. * Specific combination and coordination of resources critical. * Strategy based on skilled diagnosis and creative solutions. * **Market-based View** * Firm as a unit in a market. * Distinct position in market underpins competitive advantage. * Detailed knowledge of market and competitive conditions critical. * Strategy based competitive analysis and appropriate value creation. # Restructuring, Corporate governance and Professional Employee Organization (PEO) ## Restructuring What is an example of restructuring? * A corporation is examining internal business units to find redundancies that can be eliminated. ## Corporate Governance Define corporate governance? * It refers to the systems by which an organization is administered, directed, and controlled. ## Professional Employee Organization (PEO) The primary advantage of using a Professional Employee Organization (PEO) is? * Human resource functions can be outsourced and performed more capably. # BLS and Leading Indicators ## Bureau of Labor Statistics (BLS) What is the Bureau of Labor Statistics (BLS)? * It is a federal agency that collects and disseminates various data about the U.S. economy and labor market. * It's reports include the Consumer Price Index (CPI) and the Producer Price Index (PPI), both of which are considered to be important measures of inflation. ## Leading Indicators What is the most useful measure for making managerial decisions, and why? * Leading Indicators, because they predict future performance. # Human resource departments for staffing Why has the responsibility to most human resource departments for staffing activities increased? * Because of laws prohibiting discrimination. # Risk Management ## Question The Quell organization has rolled out an expansive range of operative risk management programs, enterprise-wide. These include avoidance, loss prevention, loss reduction, separation, duplication, and diversification. Which advantage is most likely to be realized when the Quell organization implements these risk management techniques? * a. It will promote continuous improvement and foster higher levels of assurance among stakeholders. * b. It will align the interests of all stakeholders with the interests of the owners of the organization. * c. It will increase assurance in the ability of the organization to maintain a conservative culture that fosters the achievement of its strategic goals and objectives. * d. It will create opportunities for elasticity and variability as an enterprise-wide response to organizational exposures and risks. ## Answer **a. It will promote continuous improvement and foster higher levels of assurance among stakeholders.** Organizations that implement effective risk management techniques promote continuous improvement, support the effective use of the company's resources, and encourage and protect company specific goals and objectives. **Note** that stakeholders are both internal and external – and it is not practicable to align the interests of ALL stakeholders to that of shareholders. *A conservative culture and variable responses are not necessarily benefits of risk management.* # SHRM Quick Questions and Answers <start_of_image> ええっと、SHRM は、Society for Human Resource Management の略で、人材マネジメントの専門家のための協会です。人材マネジメントの専門家になると、この協会の資格を取得する場合があります。 * **Cultural Determinism** - It is the belief that the culture in which we are raised determines who we are at emotional and behavioral levels. * **Cultural Relativism** - It is the principle that an individual human's beliefs and activities should be understood by others in terms of that individual's own culture. * **Safe-Harbour Provision** - Prevents an employer from losing the FLSA overtime exemption for improper pay deductions if the employer has "a clearly communicated” policy and makes a good-faith effort to comply in the future. * **Transactional engagement** - Type of undesirable engagement where employees appear engaged, for example, by working longer hours but do not actually feel or think in an engaged way. It can be seen as undesirable because it is associated with negative well-being outcomes. * **Risk Appetite** - Understanding the organization's risk appetite. Identifying and analyzing risks is most effectively performed after risk managers understand the risk appetite and tolerance of the organization. * **BRICS countries** - Brazil, Russia, India, China, South Africa * **Diversity value** - Broader perspectives which lead to increased innovation. * **Risk position and risk appetite** - Risk position refers to desired gain or loss; Risk appetite refers to amount of uncertainty organization is willing to pursue for goals. * **Risk matrix** - Used during risk assessment to define the level of risk by considering the category of probability against the severity of the risk. * **ISO risk definition** - According to ISO 31000, risk is the “effect of uncertainty on objectives" and an effect is a positive or negative deviation from what is expected. * **Benchmark job** - A job that has a standard and consistent set of responsibilities from one organization to another and for which data is available in valid and reliable salary surveys. * **FMLA Leave elegibility** How long does someone need to be employed at a company before they are eligible for FMLA leave? 12 months (does not have to be consecutive). * **COBRA health benefits** - COBRA states that a company must provide a defined amount of health benefits for its employees, if it employs at least how many employees? Twenty (20). * **Employer actions when employees begin to unionize** - Employers may explain fact-based problems with unionization to employees. The employer cannot threaten, interrogate, promise or spy (TIPS) on employees to prevent unionization. * **Human resource professional risk areas** - Workplace privacy, legal compliance, safety and health, and business continuity. * **Human resource audit purpose** - To consider overall improvements that can be made within the HR function. * **UGESP testing focus** - The Uniform Guidelines on Employee Selection Process (UGESP) requires that testing be focused on what? Reliability & Validity. * **Reliability and validity purpose** - What is the purpose of establishing required qualities of reliability and validity? To avoid discrimination against protected classes. * **Organization Development Intervention categories** - What are the four categories of Organization Development intervention, according to Cummings and Worley? Techno-structural, Human Resource Management, Human Process, and Strategic. * **Meyers-Briggs Type Indicator use** - In the workplace, the Meyers-Briggs Type Indicator is primarily used for what? It is primarily used as a personality test. * **ADDIE instructional design acronym** - What does the ADDIE instructional design acronym stand for? Analysis, Design, Development, Implementation, and Evaluation. * **Strategy vs Tactic** - What is the key difference between a strategy and a tactic? A strategy is a larger, overall plan that can comprise several tactics, while tactics are smaller, focused, less-impactful plans that are part of the overall plan. * **Risk scorecard** - Assessments of risk regarding event probability, speed of onset, existing mitigation, and severity. * **Multidomestic strategy** - Companies with a ------- strategy have as their aim to meet the needs and requirements of the local markets worldwide by customizing and tailoring their products and services extensively. * **Answer:** Multidomestic * **HR role regarding offshoring and outsourcing** - What is HRs role regarding offshoring and outsourcing in a global company? Due diligence. * **Standardization and localization hybrid** - What is it called when an organization is a hybrid of standardization and localization? Dilemma reconciliation. * **Cultural synergy creation** - How do you start to create cultural synergy? Support managers with global mindset with practice and exposure. * **Secondary risk** - What is secondary risk? Actions taken to reduce one kind of risk increases another. * **Residual risk** - What is residual risk? Uncertainty that exists when all risk management has been exhausted. * **Totalization agreements** - What are totalization agreements? Agreements that prevent double taxation. They eliminate dual Social Security taxation, the situation that occurs when a worker from one country works in another country and is required to pay Social Security taxes to both countries on the same earnings. * **Diversity vs Inclusion** - What is the difference between diversity and inclusion? Diversity is about who is brought into the organization; inclusion is whether they feel welcome and valued and not just assimilated. * **Covering** - Covering occurs when employees manage or downplay their differences. Covering can prevent the worker from bringing their authentic selves to work and hinder an organization from creating a true culture of inclusion. * **4 "T's" to influence managers regarding Diversity and Inclusion** - What are the 4 "T's" to influence managers regarding Diversity and Inclusion? Travel, Teams, Training, Transfers. * **Crisis Management vs Business Continuity** - What is the difference between crisis management and business continuity? Crisis management secures employee health and safety while business continuity keeps critical business processes going. * **Affiliation** - A form of covering that occurs when individuals avoid behaviors associated with their identity group, such as culture, ethnicity, etc. * **Global company** - companies offer a standardized product worldwide, are highly centralized and subsidiaries are often very dependent on the Headquarters. * **Answer:** Globalized * **Reduction in Force (RIF)** - Termination of employment of individual employees and groups of employees for reasons other than performance, for example, economic necessity or restructuring. * **Branding** - A marketing function that identifies products and differentiates them from all other products. * **Electromation v. NLRB **- a US labor law case related to employer domination of labor organizations, where the employer was found to have created an unlawful company union which is an Unfair Labor Practice (ULP). * **Licensing** - A type of international business where the licensor (i.e. the firm with the technology or brand) provides their products, services, brand or technology to a licensee via an agreement. This agreement will allow the licensor affordable and low risk entry to a foreign market while the licensee can gain access to the competitive advantages and unique assets of the licensor. * **Blended learning** - A planned approach to learning that includes a combination of instructor-led training, self-directed study, and on-the-job training. It is the use of multiple training methods to achieve optimal learning. * **Six Sigma process** - A quality-control data-driven methodology intended to improve business processes by greatly reducing the probability that an error or defect will occur. * **Dual career ladders** - A career development plan that allows upward mobility for employees without requiring that they be placed into supervisory or managerial positions. * **Turnkey operation** - A for-profit operation that is ready to use as-is the moment it is purchased by a new owner or proprietor. The term “turnkey” is based on the concept of only needing to turn the key to unlock the doors to begin operations, or to put the key in the ignition to drive the vehicle. * **Green Field** - Investors construct new facility. * **Brown Field** - Redevelops existing facility. * **Transnational company** - Companies often try to create economies of scale upstream in the value chain, and be more flexible and locally adaptive in downstream activities such as marketing and sales. * **Answer:** Transnational * **Service-Level Agreement (SLA)** - A part of a service contract where the service expectations are formally defined. * **Unfair Labor Practice (ULP)** - Unfair labor practice in US labor law refers to certain actions taken by employers or unions that violate the National Labor Relations Act and other legislations. Such acts are investigated by the National Labor Relations Board. * **Database Management System (DBMS)** - Variety of software applications that electronically manage stored data. * **Independent contractors** - Self-employed individuals hired on a contract basis for specialized services. * **Organizational development** - The process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions * **Picketing** - A form of protest in which people congregate outside a place of work or location where an event is taking place. * **Constructive discipline** - Form of corrective discipline that implements increasingly severe penalties for employees; also called progressive discipline. * **Enterprise resource planning (ERP)** - Business management software, usually a suite of integrated applications, that a company can use to collect, store, manage and interpret data from many business activities. * **Cost-benefit analysis (CBA)** - Approach to determining the financial impact of an organization's activities and programs on profitability, through a process of comparing the benefit created against the cost of creating that benefit. * **International Strategy** - Strategy is often referred to as an exporting strategy. * **Answer**: International * **International company** - An international company has little need for local adaption and global integration. The majority of the value chain activities will be maintained at the headquarters. This strategy is also often referred to as an exporting strategy. Products are produced in the company's home country and sent to customers all over the world. Subsidiaries, if any, are functioning in this case more like local channels through which the products are being sold to the end-consumer. * **Groupware** - Umbrella term for specialized collaborative software applications. * **Talent management** - System of integrated HR processes for attracting, developing, engaging, and retaining employees who have the knowledge, skills, and abilities to meet current and future business needs. * **Co-sourcing** - Co-sourcing is similar to hiring a consultant or contractor on a continuing basis. With co-sourcing, you obtain an external resource that becomes an integral part of your team, working side-by-side with your on-site personnel. * **HR Audit** - The systematic and comprehensive evaluation of an organization's HR policies, practices, procedures, and strategies to identify needs for improvement and enhancement of the HR function. * **Work-to-rule** - Follow official working rules and hours exactly in order to reduce output and efficiency, especially as a form of industrial action. * **Intellectual property** - Ownership of innovation by an individual or business enterprise; includes patented, trademarked, or copyrighted property). * **Employment-at-will** - Principle of employment in the U.S. that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary, and that employees have the right to quit a job at any time. * **Workforce planning** - Strategic process by which an organization analyzes its current workforce and determines the steps required to prepare for its future needs. * **Reverse innovation** - Innovations created for or by emerging-economy markets and then imported to developing-economy markets. * **Cloud computing** - The on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. * **Gamification** - Selective use of game design and game mechanics to drive employee engagement in business scenarios. * **Workforce management** - All activities needed to ensure that the knowledge, skills, abilities, and other characteristics of the workforce meet current and future organizational and individual needs. * **Wildcat strike** - Work stoppages at union contract operations that have not been sanctioned by the union. * **Secondary action/boycott** - Attempt by a union to influence an employer by putting pressure on another employer, for example, a supplier. * **Ethnocentric Model** - This occurs when a company follows the strategy of choosing only from the citizens of the home country to work in host countries. These companies believe that the home country is superior and make few adaptations to their products and undertake little research in the international markets. * **Polycentric Model** - This occurs when a company adopts the strategy of limiting recruitment to the nationals of the host country (locality). It is based on the belief that locals of the host country know their culture better and should run the business. This means that the head office places little control on the activities in each subsidiary, and each subsidiary develops its unique business and marketing strategies in order to succeed. * **Regiocentric Model** - This is when a company sees similarities and differences in a world region, and designs strategies around regions. For example, an American company, which focuses on countries included in the North American Free Trade Agreement (NAFTA)- i.e. the United States, Canada, and Mexico, has a region-centric orientation. Also, if companies of ASEAN member countries focus only on South East Asia, then they are said to have a regiocentric orientation. * **Geocentric Model** - When a company adopts the strategy of recruiting the most suitable persons for the positions available, irrespective of their nationalities, it is utilizing a geocentric model. Geocentric companies, are truly global players who view the world as a potential market, and seek to utilize this effectively. It displays the “think global, act local" ideology. It combines ethnocentrism and polycentricism into a 'world view' that sees similarities and differences in markets and countries, and seeks to create a global strategy that is also responsive to local needs and wants. * **Hacking** - Act of deliberately gaining of unauthorized access to data in a system or computer. * **Restructuring** - Act of reorganizing the legal, ownership, operational, or other structures of an organization, such as mergers, acquisition, divestitures etc. * **Multi-criteria decision analysis (MCDA)** - Decision-making tool in which a team determines critical characteristics of a successful decision; a matrix is used to score each alternative and compare results. * **Alternative dispute resolution (ADR)** - Umbrella term for the various approaches and techniques, other than litigation, that can be used to resolve a dispute. Examples include arbitration, mediation, conciliation, peer review panel. * **Joint employment** - Situation in which an organization shares responsibility and liability for their alternative workers with an alternative staffing supplier; also known as co-employment. * **Center of excellence (COE)** - HR structural alternative established as an independent department that provides expert services within a focused area to internal clients and provides a leading-edge knowledge and competency in that area. * **Turnover** - Act of replacing employees leaving an organization; attrition or loss of employees. * **Attrition** - A gradual voluntary reduction of employees who are not then replaced. * **Theory of Constraints** - A system (the chain) is a collection of interrelated, independent processes that work together to turn inputs into outputs in the pursuit of some goal. A chain always has one weakest link. If one applies force to the chain at an increasing rate, it eventually breaks at the weakest link. Therefore, the weakest link is the constraint that prevents the system (chain) from doing any better at achieving its goal. After strengthening one constraint, the system is stronger. However, the system does not become infinitely stronger. The constraint simply migrates to a different component of the system. Some other link is now the weakest, and all the other links are nonconstraints. * **Goal Incongruence** - When organizational members don't agree on what the goals of the organization are or should be, it is known as -------. * **Answer:** goal incongruence * **Push Factors** - Where companies are driven into globalization by competitive factors such as: * A need for a new market * Increased cost pressures and competition * Shortfalls of natural resources and talent supply * Government policies * Trade agreements * Globalized supply chain * **Pull Factors** - Attractions to globalization that support organizations' aspirations such as: * Greater strategic control * Government policies that promote outward foreign investment * Trade agreements * **Global Integration (GI)** - Emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations. * **Local Responsiveness (LR)** - Emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems. * **Upstream and Downstream Strategy** - Decisions focused on strategy and coordination and standardization of processes are made at the headquarters' level (workforce alignment, org development). Decisions aimed to adapt strategic goals and plans to local realities are made at the local level (alignment with local cultural practices and legal requirements). * **Identity Alignment and Process Alignment** - Diversity and differences among people, products/services, branding is embraced. Underlying operations such as IT, Finance, or HR integrate across locations. * **GI-LR Matrix** - Matrix containing four strategic options: international, multidomestic, global, transnational. * **International Strategy** - Low in Gl, low in LR. These are companies with strong global brand identity, specialized products or services, are mainly importers and exporters, and have little or no investment outside of their home country. * **Multidomestic Strategy** - Low in Gl, high in LR. Though the headquarters may exert some control, the subsidiaries are managed as separate markets. HR's focus in a multidomestic strategy is providing services to a large number of assignees, training on legal and cultural issues, ensuring the local culture is accommodated in the practices and policies of headquarters. * **Global Strategy **- High in Gl, low in LR. These companies emphasize volume, cost management, efficiency, and economies of scale. HR's focus in companies with a global strategy is to develop standardized policies. * **Transnational Strategy **- High in Gl, high in LR. These companies have their value chain activities located wherever it is most beneficial. They practice "glocalization", which is having a strong global image but an equally strong local identity. Each location adds to the total "value picture" and knowledge and expertise is freely shared between locations. * **Globalist** - These employees spend their entire careers in international assignments, moving from one locale to another. * **Local hires** - These employees are host-country nationals; hired locally in subsidiary countries. * **Short-term assignees** - These employees are on assignment for less than a year but longer than a few weeks. * **International assignees** - These are traditional expatriates on full relocation assignments lasting from one to three years. * **Just-in-time expatriates** - These are ad hoc, or contract workers hired for a single assignment. * **Zipper Clause** - A zipper clause in the collective bargaining contract means that both parties waive the right to bargain during the term of the contract. * **Contract Bar Doctrine** - The contract bar doctrine provides that once a contract is executed, the National Labor Relations Board (NLRB) will not permit a representation election in the bargaining unit covered by the contract until the contract expires up to a 3-year limit. * **Union Security Clause** - A union security clause is a provision in a union contract that requires employees, as a condition of employment, to maintain union membership or pay union dues, e.g. union shop. Note that union security clauses are illegal in right-to-work states. * **Escalator Clause** - An escalator clause provides for an increase in wages when the Consumer Price Index (CPI) rises or when inflation increases. Such wage increases are called Cost-Of-Living Adjustments (COLA). * **Construct Validity** - Construct validity means the test measures the candidate's skills or abilities that are correlated to success on the job. * **Content Validity** - Content validity, on the other hand, means the test or assessment measures the job content. * **Employment Practices Liability Insurance (EPLI)** - Employment Practices Liability Insurance (EPLI) provides coverage to employers against claims made by employees on employment-related issues such as discrimination, wrongful termination, harassment etc. * **Department of Justice and Federal Trade Commission (FTC)** -The Department of Justice and Federal Trade Commission (FTC) (collectively, the federal antitrust agencies) jointly enforce the U.S. antitrust laws, which apply to competition among firms to hire employees. * **Disparate Impact** - Disparate impact occurs when employment processes that seem neutral on its face, result in adverse impact on members of protected classes. It is unintentional discrimination against members of a protected class. * **Non-Core Function Outsourcing**- A business will not outsource its core functions but will outsource non-core functions. Non-core functions or activities are considered to be outside of business activities or operations that are the main revenue source of the business. Non-core functions are not critical to the overall success of a business but still provide a valuable contribution. Note that what is “core” for one business may be “non-core” for another. * **Ascription** - Ascription is the cultural tendency of assigning social status on the basis of birth, such as monarchies, caste systems, and traditions where societal roles are determined by birth. In Ascriptive cultures, titles, rank and hierarchy are important in and of themselves. Often these titles are bestowed upon individuals not because of any achievement of their own, but because of a family's rank and status in the society. A good example is Prince Charles of England – his role is ascriptive. On the other hand, a culture of achievement values a merit-based assignment of social status where members earn their positions based on their decisions, education, hard work etc. * **Decentralized HR Structure** - In a Decentralized HR structure, HR administration, proses and practices are determined at the business unit or local level while Headquarters HR is responsible for the overal HR strategy and policy. In this structure, there are separate HR functions housed in business units delineated by product, geography or location. * **BCG Growth-share Matrix** - The BCG growth-share matrix provides a strategy for analyzing products according to market growth and market share. The matrix helps companies gain insights on what products would best increase market share, offer growth opportunities and give a competitive advantage. * **Acquired Needs Theory** - According to the acquired needs theory by David McClelland, achievement-oriented individuals seek attainment of realistic and reasonably-challenging goals. They have a strong need for feedback, recognition and a feeling of accomplishment. Power or authority motivated individuals neither seek recognition nor approval from others – only compliance and control. * **Particularism** - Particularism is the belief that circumstances dictate how ideas and practices should be applied, i.e. relationships over rules. Universalism is the belief that ideas and practices can be applied everywhere without modification, i.e. rules over relationships. * **Low uncertainty avoidance culture**- Low uncertainty avoidance societies are more tolerant of change and display a greater ease towards uncertainty. These cultures accept and feel comfortable in unstructured situations and try to have as few rules as possible. * **Defined Benefit Plan** - A defined benefit (DB) pension plan is a type of pension plan in which an employer promises a specified pension payment, on retirment that is predetermined by a formula based on the employee's earnings history, tenure of service, and age, rather than depending directly on individual investment returns. A defined benefit plan means the pension benefit is defined and known in advance. * **Electrician Exempt Status** - An electrician earns a total annual compensation of $120,000. Не directs the activities of a machinist, and provides a report on his performance at the close of business. Which of the following is true, regarding the electrician's exempt status? * **Answer:** Не is not exempt. * **Overtime Pay** - Overtime is calculated as one and half of regular pay not twice the regular pay. Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek. * **Management By Objectives (MBO)** - MBO or Management By Objectives is defined as a comprehensive managerial system that integrates many key managerial activities in a systematic process and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives. The first step in the MBO process is to define the organization's goals. The next step is option C which is to define employee objectives at the beginning of the performance period. # Global-local models and the GI-LR Matrix ## Global-Local Models: 1. **Upstream and Downstream Strategy** - Decisions focused on strategy, coordination, and standardization of processes are made at the headquarters' level (workforce alignment, organization development). Decisions aimed at adapting strategic goals and plans to local realities are made at the local level (alignment with local cultural practices and legal requirements). 2. **Identity Alignment and Process Alignment** - Diversity and differences among people, products/services, and branding are embraced. Underlying operations such as IT, Finance, or HR integrate across locations. 3. **The GI-LR Matrix** - Matrix containing four strategic options: international, multidomestic, global, transnational. ## The Global Integration – Local Responsiveness Matrix (GI-LR Matrix) – International, Multidomestic, Global, Transnational Strategy Options: * **International Strategy** - Low in Global Integration, low in Local responsiveness. These are companies with strong global brand identity, specialized products or services, are mainly importers and exporters, and have little or no investment outside of their home country. * **Multidomestic Strategy** - Low in Global Integration, high in Local responsiveness. Though the headquarters may exert some control, the subsidiaries are managed as separate markets. HR's focus