H1: Gaining a competitive advantage

Competitiveness A companys ability to maintain and gain market share HRM Policies, practices and systems that influence employees behavior, attitudes and performance Self-service Giving employees online access to HR information Outsourcing 1. he practice of having another company provide service !. An organi"ations use of an outside organi"ation for broad set of services Evidence-based HR #emonstrating that human resource practices have a positive influence on het companys bottom line or key stakeholders Sustainability he ability of a company to survive in a dynamic environment. $ased on an approach to organi"ational decision making that considers the long%term impact of strategies on stakeholders Stakeholders he various interest groups &ho have relationships &ith, and conse'uently, &hose interests are tied tot het organi"ation. Intangible assets A type of company asset including human capital, customer capital, social capital and intellectual capital no!ledge !orkers (mployee &ho o&n the intellectual means of providing a product service Empo!ering Giving employees responsibility and authority to make decisions "earning organi#ation (mployees are continually trying to learn ne& things $sychological contract 1. ()pectations of employee contributions and that &hat the company &ill provide in return !. he e)pectations that employers and employees have about each other Employee engagement he degree to &hich employees are fully involved in their &ork and the strength of their *ob and company commitment %lternative !ork arrangements

+ndependent contractors, on%call &orkers, temporary &orkers and contract company &orkers &ho are not employed full%time by the company &alanced scorecard A means of performance measurement that gives managers a chance to look at their company from the perspectives of internal and e)ternal customers, employees and shareholders. 'otal (uality management )'*M, A cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve 'uality and productivity Si+ sigma process -ystem of measuring, analy"ing, improving and controlling processes once they meet 'uality standards. Internal labor force .abor force of current employees E+ternal labor market Persons outside the firm &ho are actively seeking employment Off shoring ()porting *obs from developed to less developed countries On shoring ()porting *obs tot rural parts of the /High-performance-!ork systems 0ork systems that ma)imi"e the fit bet&een companys social system and technical system ,irtual teams eams that are separated by time, geographic distance, culture and1or organi"ational boundaries and rely e)clusively on technology for interaction bet&een team members Electronic HRM )e-HRM, he processing and transmission of digiti"ed information used +n HR2 Human Resource Information System )HRIS, A system used to ac'uire, store, manipulate, analy"e, retrieve and distribute HR information HR -ashboard HR metrics such as productivity, absenteeism that are accessible by employees and managers through the company intranet of HR+-

H2: Strategic HRM

Strategic HRM )SHRM. A pattern of planned HR deployments and activities intended to enable an organi"ation to achieve goals.

Strategy formulation he process of deciding on a direction by defining a companys mission and goals, its e)ternal opportunities and treats, and its internal strengths and &eaknesses Strategy implementation he process o devising structures and allocating resources tot enact strategy a company had chosen /oals 0hat an organi"ation hopes to achieve in the medium% to long term future E+ternal analysis ()amining het organi"ations operating environment to identify strategic opportunities and treats Internal analysis he process of e)amining an organi"ations strengths and &eaknesses Strategic choice he organi"ation strategy, the &ays an organi"ation &ill attempt to fulfill its mission and achieve its long%term goals 0ob analysis he process of getting detailed information about the *obs 0ob design he process of defining the &ay &ork &ill be performed and the tasks that &ill be re'uired in a given *ob Recruitment he process of seeking applicants for potential employment Selection he process by &hich an organi"ation attempts to identify applicants &ith 3-A and other characteristics that &ill help it achieve its goals 'raining A planned effort to facilitate the learning of *ob%related 3- and behavior by employees -evelopment he ac'uisition of kno&ledge, skills and behaviors that improve an employees ability to meet changes in *ob re'uirements and in client and customer demands $erformance management he means trough &hich managers ensure that employees activities and outputs are congruent &ith the organi"ations goals Role behaviors $ehaviors that are re'uired of an individual in his or her role as an *obholder in a social &ork environment E+ternal gro!th strategy An emphasis on ac'uiring vendors and suppliers or buying business that allo& a company to e)pand into ne& markets

Concentration strategy A strategy focusing on increasing market share, reducing costs or creating and maintaining a market niche for products and services Internal gro!th strategy A focus on ne& market and product development, innovation and *oint ventures -o!nsi#ing he planned elimination of large numbers of personnel designed to enhance organi"ational effectiveness

H4: the analysis and design of work

Centrali#ation #egree of &hich decision%making authority resides at the top of the organi"ational chart 0ob description A list of the tasks, duties and responsibilities that a hob entails 0ob specification A list of 3-A and other characteristics 43-A5, that an individual must have to perform a *ob 0ob redesigned he process of changing the tasks or the &ay &ork is performed in an e)isting *ob Ergonomics he interface bet&een individuals physiological characteristics and the physical &ork environment

H5: HR planning and recr itment

1orecasting he attempts to determine the supply of and the demand for various types of HR to predict areas &ithin the organi"ation &here there &ill be future labor shortages or surpluses "eading indicator An ob*ective measure that accurately predicts future labor demand 'ransitional matri+ 2atri) sho&ing the number of employees in different *ob categories at different times HR recruitment he practice or activity carried on by the organi"ation &ith the primary purpose of identifying and attracting potential employees Employment 2 at 2 !ill policies Policies &hich state that either an employer or an employee can terminate the employment relationship at any time, regardless of cause

-ue process policies Policies by &hich a company formally lays out the steps an employee can take to appeal a termination decision -irect applicants People &ho apply for a *ob vacancy &ithout prompting from the organi"ation Referrals People &ho are prompted to apply for a *ob by someone &ithin the organi"ation

H!: selection and placement

Reliability he consistency of a performance measure, the degree to &hich a performance measure is free from random error ,alidity he e)tent to &hich a performance measure assesses all the relevant 6 and only the relevant% aspects of *ob performance Criterion-related validity A method of establishing the validity of a personnel selection method by sho&ing a substantial correlation bet&een test scores and *ob%performance scores $redictive validity A criterion% related validity study that seeks to establish an empirical relationship bet&een applicants test scores their eventual performance on the *ob Concurrent validation A criterion%related validity study in &hich a test is administered to all people currently in a *ob and then incumbents scores are correlated &hit e)isting measures of their performance on the *ob Content validation A test%validation strategy performed by demonstrating that the items, 'uestions, of problems posed by a test are a representative sample of the kinds of situation or problems that occur on the *ob /enerali#ability he degree to &hich the validity of a selection method established in one conte)t e)tends to other conte)ts. 3tility he degree to &hich the information provided by selection methods enhances the effectiveness of selecting personnel in real organi"ations Situational intervie! An intervie& procedure &here applicants confronted &ith specific issues, 'uestions of problems that are likely to arise on the *ob Cognitive ability tests

ests that include 7 dimensions8 verbal comprehension, 'uantitative ability and reasoning ability ,erbal comprehension Refers to a persons capacity to understand and use &ritten and spoken language *uantitative ability 9oncerns the speed and accuracy &ith &hich one can solve arithmic problems of all kind Reasoning ability Refers to a persons capacity to invent solutions to many diverse problems %ssessment center A process in &hich multiple raters evaluate employees performance on a number of e)ercises

H": enkel concepten it slides

E 2 learning +nstruction and delivery of training by computers through the internet of company intranet E+patriate (mployee sent by the company to manage operations in a different country Cross-cultural preparation the process of educating employees &ho are given an assignment in a foreign country Repatriation he preparation of e)patriates for return to the parent company and country from a foreign assignment

H#: $erformance Management

$erformance management he means through &hich managers ensure that employees activities and outputs are congruent &ith the organi"ations goals $erformance appraisal he process through &hich an organi"ation gets information on ho& &ell an employee is doing his or her *ob $erformance feedback he process of providing employees information regarding theirs performance effectiveness $erformance $lanning and evaluation )$$E. System Any system that seeks to tie the formal performance appraisal process to the companys strategies at the beginning of het evaluation period the types and level of performance that must be accomplished in order to achieve the strategy

Strategic congruence he e)tent to &hich the performance management system elicits *ob performance that is consistent &ith the organi"ations strategy, goals and culture %cceptability he e)tent to &hich a performance measure is deemed to be satisfactory or ade'uate by those &ho use it Specificity he e)tent to &hich a performance measure gives detailed guidance to employees about &hat is e)pected of them and ho& they can meet these e)pectations 3p!ard feedback 1. 2anagerial performance appraisal that involves subordinates evaluations of het managers behavior and skills !. A performance appraisal process for managers that includes subordinates evaluations 456-degree appraisal A performance appraisal process for managers that includes evaluations from a &ide range of persons &ho interact &ith the manager. he process includes self%evaluation ad &ell as evaluations from the managers boss, subordinates, peers, and customers %ppraisal politics A situation in &hich evaluators purposefully distort ratings to achieve personal or company goals Marginal employee An employee performing at a barely acceptable level because of lack of ability and1or motivation to perform &ell, not poor &ork conditions

H%: &mployee development

$rotean career A career that is based on self%direction &ith the goal of psychological success in ones &ork $sychological success he feeling of pride and accomplishment that comes from achieving life goals Career management system A system to retain and motivate employees by identifying and meeting their development needs 1ormal education programs (mployee development programs, including short courses offered by consultants or universities, e)ecutive 2$A programs and university programs 'uition reimbursement he practice of reimbursing employees costs for college and university courses and degree programs

%ssessment 9ollecting information and providing feedback to employees about their behavior, communication style and skills Myers-&riggs 'ype Indicator )M&'I. A psychological test used for team building and leadership development that identifies employees preferences for energy, information gathering, decision making and lifestyle "eaderless group discussion Process in &hich a team of : 6 ; employees solves an assigned problem together &ithin a certain time period Intervie! (mployees are 'uestioned about their &ork and personal e)perience, skills and career plans In-basket A simulation of the administrative tasks of a managers *ob Role plays A participant taking the part or role of a manager or other employee 0ob e+perience he relationship problems, demands, tasks, and other features that employees face in their *obs 0ob enlargement Adding challenges or ne& responsibilities to an employees current *ob 0ob rotation he process of systematically moving a single individual from one *ob to another over the course of tome. he *ob assignment may be in various functional areas of het company of movement may be bet&een *obs in a single functional area or department. 'ransfer he movement of an employee to a different *ob assignment in a different area of the company $romotions Advances into positions &ith challenge more responsibilities and more authority than the employees previous *ob -o!n!ard move A *ob change involving a reduction in an employees level of responsibility an authority

E+ternship 0hen a company allo&s an employee to take a full%time operational role at another company

Sabbatical A leave of absence from the company to rene& or develop skills Mentor An e)perienced, productive senior employee &ho helps develop a less e)perienced employee Career support 9oaching, protection, sponsorship and providing challenging assignments, e)posure and visibility $sychosocial support -erving as a friend and role model, providing positive regard and acceptance, and creating an outlet for a prot<g< to talk about an)ieties and fears /roup mentoring program A program pairing a successful senior employee &ith a group of =%> less e)periences prot<g<s Coach A peer or manager &ho &orks &it an employee to motivate her, help her develop skulls and provide reinforcement and feedback /lass ceiling A barrier to advancement to higher%level *obs in the company that adversely affects &oman and minorities. he barrier may be due to lack of access to training programs, development e)periences or relationship Succession planning he identification and tracking of high%potential employees capable of filling higher% level managerial positions High-potential employees (mployees the company believes are capable of being successful on high%level management positions

H11: pay str ct re decisions

$ay structure he relative pay of different *obs 4*ob structure, and ho& much they are paid 4pay level, $ay level he average pay, including &ages, bonuses of *obs in an organi"ation 0ob structure he relative pay of *obs in an organi"ation Efficiency !ages A theory stating that &ages influence &ork productivity &enchmarking

9omparing an organi"ations practices against those of the competition Rate range #ifferent employees in the same *ob may have different pay rates ey 7obs $enchmark *obs, used in pay surveys, that have relatively stable content and are common to many organi"ations 8onkey 7obs ?obs that are uni'ue to organi"ations and that cannot be directly valued or compared through the use of market survey 0ob evaluation An administrative procedure used to measure internal *obs &orth Compensable factors he characteristics of *obs that an organi"ation values and chooses to pay for $ay policy line A mathematical e)pression that describes the relationship bet&een *obs pay an its *ob evaluation points $ay grades ?obs of similar &orth or content grouped together for pay administration purposes Range spread he distance bet&een the minimum and ma)imum amounts in a pay grade Compa%ratio An inde) of het correspondence bet&een actual and intended pay -elayering Reducing the number of *ob levels &ithin an organi"ation Skill-based pay Pay based on the skills employees ac'uired and are capable of using

H12: Recogni'ing employee contri( tions with pay

$rincipal +n agency theory, a person 4an o&ner, &ho seeks to direct another persons behavior %gent +n agency theory, a person 4a manager, &ho is e)pected to act on behalf of a principal 4an o&ner, Merit increase grid A grid that combines an employees performance rating &ith the employees position in an pay range to determine the si"e an fre'uency of his or her pay increase $rofit sharing A compensation plan &ith payments are based on a measure of organi"ation performance 4profits, and do not become part of the employees base salary

Stock options An employee o&nership plan that gives employees the opportunity to buy the companys stock at a previously fi)ed price Employee stock o!nership plan )ESO$, An employee o&nership plan gives employers certain ta) and financial advantages &hen stock is granted to employees /ainsharing A form of compensation based on group or plant performance 4rather than organi"ation &ide profits, that does not become part of the employees base salary

H1): employee (enefits

Marginal ta+ rate he percentage of an additional dollar of earnings that goes to ta)es Consolidated omnibus budget reconciliation act )CO&R%. he 1@A: act that re'uires employers to e)tend their health insurance coverage at group rates for up to 7> months follo&ing a 'ualifying event, such as a layoff $ension benefit guaranty corporation )$&/C. he agency that guarantees to pay employees a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce employee pension benefits Employee retirement income security act )ERIS%, he 1@;= act that increased the fiduciary responsibilities of pension plan trustees, established vesting rights and portability provisions and established the P$G9 Cash balance plan Retirement plan in &hich the employer sets up an individual account for each employee and contributes a percentage of the employees salary, the account earns interest at a predefined rate Summary plan description )S$-. A reporting re'uirement of the (R+-A that obligates employers to describe the plans funding, eligibility re'uirements, risks and so forth &ithin @B days after an employee had entered the plan 1amily and medical leave act he 1@@7 act that re'uires employers &ith :B or more employees to provide up to 1! &eeks of unpaid leave after childbirth or adoptions, to care for seriously ill parent or for an employees o&n serious illness Health maintenance organi#ation )HMO. A health care plan that provides benefits on a prepaid basis for employees &ho are re'uired to use only H25 medical service providers $referred provider organi#ation )$$O. A group of health care provides &ho contract &ith employers, insurance companies and so forth to provide health care at a reduced fee

1inancial accounting statement )1%S .965 he rule issued by the financial accounting standard board in 1@@7 re'uiring companies to fund benefits provided after retirement on an accrual rather than a pay% as%you%go basis and to enter these future cost obligations on their financial statements

H15: Managing h man reso rces glo(ally

Individualism 2 collectivism 5ne Hofstedes cultural dimensions, describes the strength of the relation bet&een an individual and other individuals in a society $o!er distance 5ne of Hofstedes cultural dimension, describes ho& a culture deals &ith hierarchical po&er relationships 3ncertainty avoidance 5ne of Hofstedes cultural dimension, describes ho& a culture seek to deal &ith an unpredictable future Masculinity 2 femininity dimension 5ne of Hofstedes cultural dimension, describes the division of roles bet&een the se)es &ithin a society "ong-'erm 2 short-term orientation 5ne of Hofstedes cultural dimension, describes ho& a culture balance immediate benefits &ith future re&ards $arent country he country in &hich a companys corporate head'uarters is located Host country he country in &hich the parent country organi"ation seeks to locate or has already located a facility 'hird country A country other than a host or parent country Host-country nationals )HC8s. (mployees &ho &ere born and raised in het host, not the parent country 'hird-country nationals )'C8s. (mployees born in a country other than the parent or host country $arent-country nationals )$C8s. (mployees &ho &ere born and live in a parent country 'ransnational scope A companys ability to make HR2 decisions from an international perspective 'ransnational representation Reflects the multinational composition of a companys managers

'ransnational process he e)tent to &hich a companys planning and decision%making processes include representatives and ideas from a variety of cultures

H1!: strategically managing the HRM f nction

%udit approach ype of assessment of HR2 effectiveness that involves revie& of customer satisfaction or key indicators 4lie turnover rate or average days to fill a position, related to an HR2 functional area 4such as recruiting or training, %nalytic approach ype of assessment of HR2 effectiveness that involves determining the impact or the financial cost and benefits of a program or practice Reengineering Revie& and redesign of &ork processes to make them more efficient and improve the 'uality of the end product or service 8e! technologies 9urrent applications of kno&ledge, procedures and e'uipment that have not been previously used. /sually involves replacing human labor &ith e'uipment, information processing or some combination of the t&o 'ransaction processing 9omputations and calculations used to revie& and document HR2 decisions and practices -ecision support systems Problem%solving systems &hich usually include a C&hat ifD features that allo&s users to see ho& outcomes change &hen assumptions or data change 8et!ork A combination of desktop computers, computer terminals and mainframes or minicomputers that share access to databases and a method to transmit information throughout the system Client-server architecture 9omputer design that provides a method to consolidate data and applications into a single host system 4client, Relational database A database structure that stores information an separates files that can be linked by common elements Imaging A process for scanning documents, storing them electronically and retrieving them /roup!are -oft&are that enables multiple users to track, share and organi"e information and &ork on the same database or document simultaneously

Investors people +s a voluntary assessment scheme. he scheme aims to improve organi"ational performance through better planning, implementation and evaluation of learning and development programmes, across organi"ations of all si"es and sectors.