Unit 1:HR Operations

Overall Exam Weight: 38 %

HR ROLESHR Roles in the Organization

Organizational Processes People

Day-To-DayOperational

Focus

Role #1:Management of Firm

Infrastructure

Role #2:Management of EE

Contributions

Future Strategic Focus

Role #3:Management of Strategic HR

Role #4:Management of Change

Pg. 8

When HR managers are called upon to guide an organizational development intervention, they are filling the role of A) Employee championA) Employee champion

B) Change agentB) Change agent

C) Talent ManagerC) Talent Manager

D) StrategistD) Strategist

KNOWLEDGECHECK

FINANCIAL KNOWLEDGEFinancial StatementsBalance Sheet Assets = Liabilities + Owner’s

Equity over a specified period of time.

Income Statement Profit and loss statement;reporting income, expenses and profits over a specified period of time.

Cash Flow Statement Display changes of the balance sheet and fluctuations of cash availability

Pg. 10

Zero Based Budgeting

Budgets are a tool to plan and continually asses the finances of a project and the departments

expenditures.

BudgetsFINANCIAL KNOWLEDGE Pg. 11

Congratulations, you have

completed the section

02

LESSON

Organizational Strategy

Differentiate between vision statement and mission statement.

Define and demonstrate the role of the strategy.

Examine the six steps within the strategic management process.

LEARNINGOBJECTIVES

ORGANIZATION’S MISSION

Strategy is defined as goals and set of policies designed to achieve competitive advantage in

a particular marketplace.

COMPETITIVE ADVANTAGE: The ability to transform inputs into goods and services at a maximum profit on a

sustained basis, better than the competitors.

Pg. 13

VISION STATEMENT

Describes the future of the company as a successful organization.

Pg. 13

MISSION STATEMENT

Explains the essence of an organization -why it exists, what it wants to be, who it serves,

and why it should continue.

Pg. 13-14

Example of Mission and Vision:

A statement that explains why an organization exists, how it contributes to society, and which values guide its actions is called

A) An organizational policyA) An organizational policy

B) A public releaseB) A public release

C) A strategyC) A strategy

D) A mission statementD) A mission statement

KNOWLEDGECHECK

WRITING MISSION STATEMENTS

Explains the essence of an organization -why it exists, what it wants to be, who it serves,

and why it should continue.

Purpose Statement

Business Statement

Values Statement

Pg. 14

ROLE OF THE STRATEGYStrategy involves the combination of goals and plans to achieve competitive advantage and the methods of

implementing them.

Characteristics of Generic Strategy •Promote the mission and goals the organization is striving to achieve.• Long-term focus that extends beyond the immediate time horizon.• Define the action plans the organization intends to follow to achieve its mission and goals.• Recognize explicitly the impact of the external environment, especially the reactions of competitors.

Pg. 15

STRATEGY FORMULATIONStrategic Management Process

① Identify the Organization’s Mission & Objectives

②Analyze Environment:Opportunities & Threats

③ Analyze Resources:Strengths & Weaknesses

④ Formulate Strategy

⑤ Implement Strategy

⑥ Evaluate and Monitor Results

Pg. 16

WRITING A BUSINESS PLANBusiness Plan is a blue print of how the company plans to

compete successfully within it’s industry.

Pg. 18

In the strategic management process, which of the following should be done FIRST?

A) Identify the organization’s mission and objectives.A) Identify the organization’s mission and objectives.

B) Evaluate and monitor results.B) Evaluate and monitor results.

C) Formulate a strategy.C) Formulate a strategy.

D) Analyze the environment. D) Analyze the environment.

KNOWLEDGECHECK

Congratulations, you have

completed the section

03

LESSON

Effective HR Management

Define and describe HR metrics.

Identify key performance indicators (KPI).

Recognize value-add of HR technology and varieties in innovation.

LEARNINGOBJECTIVES

Primary metrics :• Revenue Factor – Revenue ÷ Total # FTE• Revenue per Labor Costs – Revenue ÷ Total Labor Costs• Human Capital ROI – [Revenue- (Operating Expense – (Compensation cost + Benefit Cost))] ÷

(Compensation cost + Benefit cost)• Human Capital Value Added – [Revenue – (Operating Expense – (Compensation cost + Benefit Cost ))] ÷

Total # FTE• HR Expense Factor – HR Expenses ÷ Total Employees• Absence Rate – [(# days absent in the month) ÷ (Avg # employees during month) x (# workdays) x 100• Turnover Rate – [# separations during the month ÷ Avg # employees during month] x 100• Cost per Hire – (External Costs + Internal Costs ) ÷ # hires• Turnover Costs per Employee – (Separation Costs + Replacement costs + Training Costs + Lost

Performance) ÷ # replacements• Time to Fill – Total days elapsed to fill requisitions ÷ # hired• Training Investment Factor – total Training Costs ÷ Headcount• Health Care Costs per Employee – Total cost of health care ÷ Total employees• Employee Benefits as a Percent of payroll – Total employer benefits payments ÷ Total gross payroll• HR-to-Employee Ratio – (Total # HR FTEs ÷ Total # FTEs in the Organization) x 100

HR METRICS Pg. 21

A metric is a quantifiable measure used to track, monitor and assess the success or failure of business processes.

Primary metrics :• HR Expense Factor – HR Expenses ÷ Total Employees• Turnover Rate – [# separations during the month ÷ Avg #

employees during month] x 100• Cost per Hire – (External Costs + Internal Costs ) ÷ # hires• Time to Fill – Total days elapsed to fill requisitions ÷ # hired• Health Care Costs per Employee – Total cost of health care ÷

Total employees

HR METRICS Pg. 21

A metric is a quantifiable measure used to track, monitor and assess the success or failure of business processes.

OUTSOURCINGHuman Resources Outsourcing (HRO) is a means of outsourcing specialists to

perform human resources functions.

HRO Options• Professional Employer Organization (PEO)• Employee Leasing

Pg. 24

HR TECHNOLOGY

New technologies has dramatically changed the way many HR practices are performed.

Pg. 25

The primary advantage of using a professional employee organization is

A) It provides inexpensive consulting advice.A) It provides inexpensive consulting advice.

B) Human resource functions can be outsourced and performed more capably.B) Human resource functions can be outsourced and performed more capably.

C) The company reduces its exposure to illegal discrimination.C) The company reduces its exposure to illegal discrimination.

D) The company saves the money it would have spent on employee benefits and services.D) The company saves the money it would have spent on employee benefits and services.

KNOWLEDGECHECK

Congratulations, you have

completed the section