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269 Cards in this Set
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HR core business functions |
Executive management Finance and Accounting Marketing and Sales Research and Development Operations Information Technology Human Resources |
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Executive management responsibilities |
Develop and communicate strategy to the org’s components Monitor and control implementation of strategic and operational activities Primary interface with stakeholders, investors, customers Lead the org through a shared vision and the values they model in all interactions |
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Finance and accounting roles |
Process, document, and account for the financial resources of the organization. Report to the Chief Financial Officer (CFO) |
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4 commonly used budgeting methods |
Zero based Incremental Formula Activity based |
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Zero based budgeting |
All objectives and operations are given a priority ranking. Each unit or goal is ranked, and available funds are given in order. All expenditures must be justified for each to period, and budgets start at zero. |
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Incremental budgeting |
Line item budgeting. Prior budget is the basis for the next budget but increased by a set %. Additional funds must be requested based on need and objectives. Like installing new computer equipment. |
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Formula budgeting |
Different units review varying % of the budget. General funding is changed by a specific amount and the unit budgets are adjusted. The % increase is spread among its units. |
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Activity based budgeting |
Interrelationships among various activities required to create value in an organization. How much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities |
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Marketing and sales |
Part of the organization that brings in revenue. Managing 4 Ps (price, product, promotion, and place) |
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Research and development |
In a commercial enterprise, R&D or new product design and development is responsible for future revenue. Depends heavily on talent acquisition and management. |
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Operations |
Develops, produces, and delivers the company’s products and services to customers. Responsible for building the products and services that marketing and R&D define and that sales monetizes. Source of the revenue for the enterprise. |
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Information Technology |
Managed the storage, access, exchange, and analysis of information across the enterprise through hardware and software systems. Oversees networks used for voice and data comms and hardware components and supports data storage and processing needs throughout the organization |
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IT challenges |
Systems grow over time Charged with maintaining the security and reliability of the org’s data. Secure against internal and external tampering Manage the system for efficiency as well as security |
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HR |
Core function is to deliver the talent and services required by other functions and well positioned to serve as a cross functional bridge. |
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Organizational design |
Work specialization Decision making authority Layers of hierarchy Formalization |
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Work specialization |
The degree to which tasks are performed as separate job. Can result in boredom and lack of quality. Hamper collaboration and innovation. |
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Decision making authority |
Describes his decisions are made within the organization. Authority relates to the scope of responsibilities that the define area in which a manager or supervisor is empowered to make decisions |
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Layers of hierarchy |
Chain of command and span of control. Aim for a flatter more efficient organization with fewer staff support positions. |
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Formalization |
The extent to which rules, policies, and procedures govern the behavior of the employees in the organization |
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Departmentalization |
The way an organization group it’s jobs and aligns efforts |
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Functional structure |
Departments are defined by the services they contribute to the organization’s overall mission, such as marketing and sales, operations, and HR. |
Easy to understand Weak grasp of broader organizational issues |
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Product structure |
Functional departments are grouped under major product divisions. A car company, for example, may have separate divisions for cars, trucks and SUVs and each division will have its own marketing, sales, manufacturing and finance functions |
Product team culture Product expertise More people Weak customer focus |
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Geographic structure |
Similar to product structure, with the exception that geographic regions rather than products define the org chart. Each region has its own complete and self sufficient set of functions |
Proximity to customer More people Potential quality control |
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Hybrid structures |
Combine elements of the functional, product and geographic structures. A common use of hybrid structure occurs when an organization first goes global. |
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Front-back structure |
Organization divided into two types of functions. Front functions defined by geographic locations or customer types. Back functions defined by product or business unit |
High level of customer focus Possible conflict between front and back |
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Matrix structure |
Combines departmentalization by division and function to gain the benefits of both. It creates a dual rather than a single chain of command. Employees report to 2 managers rather than 1 with neither manager assuming a supervisor role |
Unclear lines of authority Availability of best global talent |
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Responsible, Accountable, Consult, and Inform (RACI) matrix |
For any given activity, individuals will be assigned a certain role. A responsible member will perform the activity. Accountable member is in charge of the activity and answers to management. Consulting members provide advice or information to perform the task. Members to be informed receive comms about the activities but do not perform or consult. |
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Large organizations |
Create HR structures that are decentralized but locate centers of excellence at a corporate level. |
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Composition of an HR Team |
Leaders Managers Specialists Generalists |
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HR leaders |
Have a strategic role. Typically part of the senior leadership team and often report directly to the CEO or COO. Bring information about strengths, weaknesses, opportunities and threats to the organization’s strategy to other leaders and participate in the development of overall strategy. |
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HR Managers |
Responsible for units within the HR functions, such as employee relations, talent acquisition, and organizational development |
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HR Specialist |
Functional experts and have expertise in specific areas such as compensation and benefits design, talent management, workforce relations. Role is to apply best practices in their discipline to advance the HR strategy |
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HR Generalist |
HR practitioners and jack of all trades. 1st point of contact for employees and managers for all HR related issues. Work closely with their specialist coworkers. |
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4 types of HR structures |
Centralized vs decentralized Functional vs dedicated Shared services Centers of excellence (COE) |
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Centralized vs decentralized HR |
Centralized HR has all HR personnel locate within the HR department and from there delivering services to all parts of the organization. Decentralized HR is where each part of the organization controls its own HR issues. Strategy and policy may still be made at HQ. |
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Shared services vs COE |
Frequently used in organizations with multiple business units. Rather than having to develop its own expertise in every area, each unit can supplement its resources by selecting what it needs from the menu of shared services. COE: an independent department that provides services within a focused area to internal clients. Most common services are planning and administration of employee development programs |
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Shared services model HR |
Frequently used in organizations with multiple business units. Rather than having to develop its own expertise in every area, each unit can supplement its resources by selecting what it needs from the menu of shared services. |
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Third party contractors |
Outsourcing- 3rd party vendor provides selected activities Cosourcing: 3rd party provides dedicated services to HR, often locating contractors within HR’s organization. HR activities that are not strategic but are resource-intensive or require specialized expertise are candidates for outsourcing or cosourcing. |
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Balanced scorecard |
Provide a concise yet overall picture of an organization’s performance. Used to measure the effectiveness of specific initiatives, entire departments, or entire organization |
Includes performance metrics on financial, customers, internal business processes, and learning and growth |
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HR audit |
An organization’s HR policies, practices, procedures, and strategies undergo a systematic and comprehensive evaluation. Ensure they are adequate, legal, and effective. Identify gaps in HR practices for corrective actions |
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Types of HR audits |
Compliance- focused on how well the organization is complying with current employment laws and regulations Best practices- helps org maintain or improve a competitive advantage Strategic- focuses on strengths and weaknesses of processes and see if they align with strategic plan Function specific- focuses on specific area like payroll |
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Organizational development |
The process of enhancing the effectiveness and efficiency of an organization and the wellbeing of its members through planned interventions. |
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HR responsibilities for OED interventions |
Acquiring the right workforce Acquiring and developing the right leaders Creating the right culture Creating the right structure |
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Proactive OED |
Actively build seasoned, diverse leaders and management teams Speed up decision making Prioritize strategic decisions Prepare their ecosystem to act quickly Invest in and make more use of data and analytics to run the business |
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Remedial OED |
Diminished capacity, capability, and agility Misaligned organizational structure Broken business processes Declining Broken business processes Declining workforce engagement |
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System theory |
Widely applied in OED interventions and is essential to the quality movement. A system composed of interacting parts that work together to achieve an objective. |
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OED Model |
Define problem Design and implement a solution Measure effectiveness of the solution and the initiative Sustain improvement |
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Define a problem |
Collects data to define the gap between desired and actual performance and identify possible causes for the gap. |
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Design and implement a solution |
Objectives are defined and an appropriate tactic for development is chosen. |
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Measure effectiveness of the solution and the initiative |
The solution’s effects are measured to determine if the initiative’s objectives have been met and if change has had the desired strategic impact |
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Sustain improvement |
The team monitors activity and provides guidance to leaders about ways in which new values, attitudes, or practices can become institutionalized |
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Project management principles |
Coordination and integration Importance of stakeholders Planning Control and quality assurance Communications |
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Project tasks |
The tool of decomposition is used to break down the final deliverable into the most basic tasks. Work breakdown structure. |
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Project timeline |
Gantt chart to show all the start and end dates of all the project tasks against a fixed calendar. The critical path describes the shortest amount of time required to complete a project, taking into account all project task relationships |
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Project control and quality |
Variance analysis is used to study the differences between what had been planned and what is being achieved. Root cause analysis. |
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Data gathering and sorting skills to collect useful data |
Interviews Focus groups Surveys and questionnaires Observations Unobtrusive measures (data that already exists like financial data, industry benchmarks, or correspondence. |
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Interview uses |
Offer the opportunity for follow up questions. Useful in identifying topics that can be explored in focus groups or surveys Can focus on specific information like exit interviews Interviews are rarely the sole form of gathering data from those involved because of the amount of time and labor required to conduct them. |
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Interview advantages |
Safer, confidential environment may generate significant information Comments can suggest direction for further group research |
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Interview challenges |
Can be time sensitive Requires strong relationship building skills Requires vigilance to avoid bias from influencing questions and interpretation of answers |
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Focus groups |
A small group invited to actively participate in a structured discussion with a facilitator. It lasts from 1-3 hours. Focus groups collect qualitative data that enriched quantitative survey results. Planning is important Context in which a focus group might occur Facilitator is important |
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Focus group considerations |
It’s intended to provide a microcosm of the population being studied. Ideally random selection should be used Voluntary participation Designated note taker to record comments |
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Focus group advantages |
Provide a format that is flexible and relatively comfortable for discussion Faster and less costly to complete than surveys Allow for group brainstorming, decision making, prioritization Can provide group consensus Enables HR to learn about employee needs, attitudes, and opinions in a direct format Give employees direct input |
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Focus groups challenges |
Tends to foster group think May be difficult to control Generally don’t allow for deep discussions Can provide skewed or biased results if participants are not representative |
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Facilitator techniques to sort data |
Mind mapping: begins the discussion with core ideas and members add related ideas and indicate logical connections, eventually grouping similar ideas Nominal group technique: rounds in which participants each suggest ideas until no further ideas as proposed. Discusses items, eliminates redundancies and items considered irrelevant, and agrees on the importance of the remaining items. Delphi technique: progressively collects information from a group on a preselected issue |
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Surveys and questionnaires |
Relatively inexpensive way to gather a large amount of data from a large and dispersed group of subjects. |
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Survey/questionnaire advantages |
Efficient way to gather a lot of data from a large and dispersed group Easier to quantify data for analysis and reporting |
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Survey/questionnaire advantages |
Efficient way to gather a lot of data from a large and dispersed group Easier to quantify data for analysis and reporting |
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Survey/questionnaire challenges |
Can be difficult to obtain an acceptable response rate Difficult to follow up on data from anonymous sources Relies on self reporting, which can be biased Requires time and statistical expertise to assess sample and compile and analyze data |
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Observation |
The team may gather data by observing the workplace and work processes. |
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Observation advantages |
Provides firsthand and immediate data rather than self reported data, which can be affects by memory and selectivity Is time efficient for subjects |
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Observation challenges |
Requires skill to be unseen. When the group is very aware of the observer, the data becomes less reliable Requires vigilance to remove personal bias from observations Requires experience to note significant behaviors Observations may not be representative of entire body of data |
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Advantages of Using existing data |
Eliminates the effects of observation and involvement and possible bias of facilitator/ interviewer / observer Rich, multi perspective source of data |
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Challenges of using existing data |
Can be time sensitive Requires experience to extract key data May require ingenuity to find data |
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Analyzing data |
Sort data into categories Plot statistical data Conduct a root cause analysis Determine if data is trending in a certain direction |
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Providing feedback |
Relevance: focus on those issues that are related to the internal client’s original direction Influenceable or manageable: feedback will target conditions that can realistically be changed Fact based and objective: problem should be described neutrally Selective: recommend areas of focus, prioritizing data findings by frequency and impact Sufficient and specific |
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Greiner’s 5 phases of organizational growth |
Creativity Direction Delegation Coordination Collaboration |
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5 revolutions in organizational growth |
Leadership- leaders have emerged from the entrepreneurial chaos of creativity to provide direction and allow the organization to reap the rewards of its creativity Autonomy- leaders must begin delegating decisions and responsibilities Control- organizations must decide whether they want to step back and centralize authority or find some way to coordinate these centers of power Reaction to the movement toward control and coordination. Processes that once created order now discourage action and innovation. Organizations that survive this stage move towards collaborative and more flexible structures |
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How HR can support change |
Involving everyone- ineffective change initiatives often begin and end with leadership and top level managers. Effective change recognizes that people are more likely to accept what they themselves have participated in creating. Using their communication competency- use organization’s comms channels to make sure information is delivered truthfully and completely and is fully understood Recognizing emotional reactions to change- people cannot be hurried through the change process Creating a vision- providing examples of how the change will improve the organization and employees’ own situation Building support- finding champions for change and influential allies Making sure that the change is fair Building requires performance- change is rooted in behavior. For permanent change employees need to begin to perform as required. Confidence in the change and in the organization’s and employees’ ability to survive will come through performing in the new environment |
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OED interventions are divided in 3 categories |
Individual- directed at improving individual skills and performance Team or unit- focus on processes and interactions within and between teams Organization- how the design, structure, and/or culture of the organization is helping or hindering its strategic progress |
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Culture change |
Describe the current culture- observing the language and leadership and decision making styles. Identify the aspirational culture- researched existing data and interview key leaders to define the desired cultural traits Identify gaps and conflicts Develop change initiatives |
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Changing organizational structure and design |
Org structure refers to the way in which work groups are related. Org design refers to elements that support an organization’s functioning. |
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Quality strategic initiatives |
Focused on implementing quality values and processes such as organizational redesign or improving organization’s efficiency. |
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Six sigma |
A quality approach that can produce significant benefits and is applicable to many industries and processes |
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Six sigma improvement processes |
Existing processes use DMAIC: define, measure, analyze, improve, control New processes use DMADV: define, measure, analyze, design, verify |
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Talent development interventions |
Identify the talent needs of the business and what is essential to meet the business objectives Develop existing staff Build bench strength |
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Merger and acquisition |
An expansion strategy that uses merger and acquisition will require multiple interventions to address the multiple cultures and systems in the merged entity and possible redundant or inefficient structures. |
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Efficiency strategies for interventions |
Most performance or productivity problems fall into the following categories: Behavioral- comms problems, lack of collaboration between people and groups, performance quality issues Cognitive- deficiencies in knowledge or skills Technological- problems with equipment, materials, and information used to perform work Process related- problems with how the work is done, outdated processes Cultural- problems within the workplace environment, employee satisfaction, leadership styles |
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SWOT analysis |
Tool used to identify strengths, weaknesses, opportunities and threats associated with an action or an entity. It is a qualitative analysis and does not provide a numerical score. |
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Strengths (SWOT) |
Strengths the team currently possesses that could help ensure a positive outcome. |
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Weaknesses (SWOT) |
Inherent weaknesses that would prevent the team from properly implementing this decision |
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Opportunities (SWOT) |
Additional opportunities that would be available to the team if they pursued this path |
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Threats (SWOT) |
New external threats they might meet as a result of taking this step |
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Multi criteria decision analysis (MCDA) |
The team determines critical characteristics of a successful decision. A matrix is used to score each alternative and compare results |
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Cost benefit analysis |
The quantifiable and non-quantifiable benefits are divided by the direct and indirect costs of implementing each alternative. Need to capture all costs, especially indirect costs and to value non-quantifiable benefits accurately. |
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Force field analysis |
Used to process some issues raised during a brainstorming session. Designed to analyze the forces favoring or opposing a particular change. Factors that could influence an outcome in either a negative or positive manner are listed and then assigned weights to indicate their relative strengths. Group can decide to pursue or avoid change based on the scores. |
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Communication pitfalls |
Leadership does not get involved The wrong messengers are used Communication is too sudden Communication is too late Communication is not aligned with business realities Communication is too narrow |
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Demonstrating values |
Sample returns: average value of increased production or service units, increased quality of units, proficiency, reduced occurrence of errors Sample investments: finances, costs of delivery and lost opportunities, time invested CS time spent, reputation |
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Workforce planning |
The process of analyzing the organization’s workforce and determining steps required to prepare for future needs. It strategically aligns an organization’s human capital with its business direction. |
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Workforce analysis |
Examines the current and future workforce needs and helps provide answers to questions that shape an organization’s staffing strategy |
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Workforce analysis examines what 4 areas? |
Supply analysis Demand analysis Gap analysis Solution analysis First 3 areas combine to provide a workforce profile, a picture of the current state of the organization’s workforce as well as of future requirements. The last area looks at potential ways to fill current gaps and provide for the future. |
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Supply analysis |
Where are we now? What do we have? Do we have the right mix of talent to enable the organization to achieve its short and long term business goals? What KSA are lacking? Do we need to expand our workforce levels to meet business demand? What internal redeployment, development, and cross training will meet our supply need? |
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Demand analysis |
Where do you want to be? What do we need? Are we retrenching or growing? How fast? In what areas? If the organization is moving in a new direction, does the current staff have the needed KSA to be successful? Does the organization need to redefine job descriptions to achieve long term goals? How many employees are needed on each job area? |
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Gap analysis |
What is lacking? What KSA currently exists and are needed in the future? Where are the KSA gaps in our current supply? What competencies currently exist in the organization? What competencies will be needed in the future? Where are the gaps? What are the current labor costs? What are the projected labor costs? |
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Solution analysis |
What can we afford? How will we get what we need? How much money will he allocated to staffing future KSA? Should we build, buy or borrow the talent? Will we look internally or externally to fill vacancies? What sources should we use? What are the costs vs the benefits of the recruitment strategy? |
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Trend and ratio analysis projections |
Use statistics to determine whether relationships exist between two variables. |
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Turnover analysis |
Turnover must be analyzed and factored in when estimating human capital requirements. Turnover is a metric that is normally expressed using an annualized formula that tracks the number of separations and the total number of workforce employees per month. |
Divide the total # of employees for the year by 12 to get the average monthly workforce. Then divide the # of separations for the year by the average # of employees per month. |
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Flow analysis- 3 methods |
Analyze the career development plans for employees on an aggregate basis by job function, division, or other organizational classification. Using the target positions for employees and their rating of readiness for the positions, the availability of talent for positions can be projected. Obtain estimates from each division of transfers and promotions into, out of, and within the divisions. Project future movement through statistical analysis. Models of employee flows project the number of employees who will remain in an organizational classification based on past transition rates. |
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Demand analysis |
Considers the model organization of the future and its human capital needs. Once the supply model is developed, data can be compared to the demand analysis projections and gaps can be identified, including the number of employees and gaps in skills. |
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Environmental scanning |
Examining of external opportunities and threat. |
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Judgmental forecasts |
Apply expert judgment to information from the past and present to predict future conditions and staffing needs and to understand opportunities and threats that can affect the staffing plan. |
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Regression analysis |
Simple linear regression: a projection of future demand based on a past relationship between employment level and a simple variable related to employment. Multiple linear regression: operates like simple linear, except that several variables are utilized to project future demand. |
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Simulations |
Representations of real situations in abstract form, they are often referred as “what if” scenarios. Opportunity to speculate as to what would happen if certain course of action are pursued. |
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Gap analysis |
Process of comparing the supply analysis to the demand analysis to identify the differences in staffing levels and KSA needed for the future. May identify deficiencies in staffing needs as well as any surplus of staffing levels in certain jobs and/or KSA. |
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Criteria for Prioritizing gaps |
Permanence- does the problem identified in the gap analysis occur on an ongoing basis or is it due to some temporary factor that may be resolved without taking any action? Impact- how significant is the impact of this gap on the business compared to other identified gaps? Control- to what extent is the problem reflected in this gap controllable with reasonable expenditure of resources or is the solution likely to be more expensive than the problem itself? Evidence- how certain is the quality of the data? Does the evidence provide a clear indication that the gap is a serious problem or is more evidence needed? Root cause- to the extent that the gap indicates a problem that needs to be addressed, is it the root cause of the problem? Or is there a deeper problem that must be fixed to eliminate this gap permanently? |
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Goals vs objectives |
Goals are broader and longer term endpoints and they do not state a specific plan for reaching the desired endpoint. Objectives address a specific plan and are quantifiable statements of future expectations that include a deadline for completion. Hence tactical. |
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Solution analysis |
Final stage in the workforce analysis process. An examination of how the organization can get what it needs to meet the tactical objectives within budget constraints. Decide whether to: Build- redeploying as well as training and developing the current workforce to meet future needs of the organization Buy- recruiting and hiring new people Borrow- outsourcing, leasing and contracting with others to get the job done |
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Staffing plan |
It turns workforce analysis data and tactical objectives into reality. It describes how the tactical objectives are going to be achieved through the delegation of tasks and the application of resources. |
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Staffing plan elements |
Statement of purpose- establishes the goals and targets for the staffing plan Stakeholders- identifies key decision makers and others who should be involved in the development of the plan Activities and tasks- need to be carried out and the time line for completion Team members- identifies all of the people who have been assigned or volunteered to work on specific activities, tasks and deliverables Resources- documents financial and non financial resources required for implementation Communication plan- notes specific tactics and responsibilities for communicating initial details about the plan Continuous improvement- set up a process to review the extent to which tactical objectives are achieved; identifies ways to continuously improve the plan |
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Stakeholders |
These are the people that will be affected by the implementation of the staffing plan or whose support will be needed for its success. Success of the staffing plan will require the support of those expected to carry out its implementation. It’s best to involve a variety of people in the planning process. |
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Activities and tasks |
Focused on the objectives of the plan. Categorized in terms of: Talent acquisition- process by which the organization generates a pool of qualified candidates Selection- the process followed to interview and evaluate candidates to select those best qualified for targeted position Relocation- the process of moving people throughout the organization Orientation and on boarding- process in which employees become familiar with a new location, job or culture and longer term, become a committed member of the organization team Redeployment- the process by which an organization moves an employee out of a position |
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Team members |
Those who will participate in the planning, implementation and evaluation of the staffing plan. People who are expected to contribute to the implementation of the plan must understand exactly what is required of them and what they will be accountable for. |
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Resources |
Budgetary funds and time frame for completion. Non budgeted time requirements of those who must implement or support the plan Knowledge required to shape the plan to specific stakeholders Equipment, facilities, and materials Internal and external knowledge resources Logistical support |
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Communication plan |
It is essential for the plan’s long term success. It begins during the development of the specific tactics, continues as the plan finalized, and used to support the plan’s implementation. |
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Communication components |
Audience: who requires the information Objectives: what are the specific outcomes Required information: exactly what information must be communicated Modes of communication: what type of communication will be most effective Resources: what financial and non financial resources Timing: what schedule is required to achieve the objectives of the communication plan Responsibility and accountability: who will actually develop and deliver the required communication |
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Continuous improvement |
It’s to identify opportunities for improvement as soon as possible, to document lessons learned from the experience and to ensure that they are used to enhance ongoing and future staffing initiatives. |
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Flexible staffing administration by the organization |
Temp assignments: employees hired to work on a specified job to supplement the regular workforce Temp employees: employees hired to work directly on the organization’s payroll on a short-term basis or specific period of time On-call workers: employees who report to work only when needed Part-time employees: employees scheduled to work less than a regular workweek Job sharing: having two different employees performing the tasks of one full-time position Seasonal workers: part time or casual workers hired to perform seasonal work in a variety of industries Phased retirement: any work arrangement that falls somewhere in between full time retirement and working full time |
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Flexible staffing administration outsourced |
Finite temp help: workers who are recruited, screened and employed by a temporary help firm Temp-to-hire programs: workers hired on a temporary basis with the understanding that they may be offered regular employment if they perform competently for a specified time Contract workers: highly skilled workers supplied for long term projects; under contract between the organization and a technical services firm |
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Independent contractors |
They are self employed individuals hired on a contract basis for specialized services. Employers’ legal relationship with the independent contractors can be subtle and affected by local laws. |
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Service arrangement - payrolling |
An organization needing help identifies specific people and refers them to a staffing firm, which employs them to work at the organization: arrangement is usually at the lower cost than traditional (finite) temp help |
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Service arrangement - employees leasing or professional employer organization |
In an explicit joint venture, an organization transfers all or substantially all employees at a discrete site or facility to the payroll of an employee leasing firm. |
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Temp to lease programs |
An organization contracts with two staffing firms generally a temp service and a PEO |
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Outsourcing or managed services |
An independent organization with expertise in operating a specific function contracts with an organization to assume full operational responsibility for the function |
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Agreement guidelines |
Be cautious of preprinted or standard forms- you must understand and agree to everything in the agreement Ensure clarity- simple and straight forward Negotiate competitive pricing Consider including an alternative dispute resolution (ADR) provision Include an simple opt-out procedure Negotiate clear and precise provisions for what happens when the agreement expires or the relationship ends |
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Co-employment or joint employment |
A situation in which an organization shares responsibility and liability for their alternative workers with the alternative staffing supplier. |
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Restructuring |
The act of reorganization legal, ownership, operational, or other organizational structures. |
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Redistribution of decision making authority |
Decision making authority may move downward in the organization toward line managers and outward from headquarters to field |
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Extended organization |
Businesses remain separate entities but may appear to the outsiders as one entity. Extended organizations are formed through the use of outsourcing, strategic alliances and partnerships |
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Merger and acquisition and divesture |
Organizations may try to enhance their productivity and competitiveness by adding to the value of the firm through merger and acquisition or by shedding assets that do not contribute to the bottom line through divestiture |
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Downsizing |
When an organization is facing financial pressures or changing marketplace conditions, it may downsize by reducing staff, eliminating departments, or otherwise restructuring |
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Talent development |
The development and integration of HR processes that attract, develop, engage, and retain the KSA of employees that will meet current and future business needs. It should be perceived as a long term and continuous process that requires effective alignment of business strategies and HC objectives to support long term achievement of organizational goals |
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Talent pools |
The creation and management of formal talent pools is critical aspect of an organization’s talent management strategy. Members of a specific talent pool are employees who meet a set of formal identification. They typically receive specialized development and enrichment experiences above those associated with traditional employee development |
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Measuring talent management effectiveness |
Evaluating the % of positions for which there are internal successors Comparing the # of external hires to internal promotions Evaluating the differentiation of pay between performance levels Identifying high potential employees and reviewing their corresponding retention rates Tracking retention and turnover rates at all levels of the organization |
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Performance management |
The process of maintaining or improving employee job performance. It involves the use of performance assessment tools. When skill gaps are identified by an employee’s manager, that information is provided to HR, who can conduct a gap analysis and advise on appropriate intervention strategies. |
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Performance management system |
Organizational values and goals Performance management standards Employee performance/behaviors Measurement and feedback Business results and employee growth |
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Performance standards |
The expectations of management translates into two elements that employees can deliver |
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Behaviors |
What the organization wants the employees to do |
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Results |
What the organization wants the employees to produce or deliver |
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Measures of employee performance include: |
Quality - how well the work is performed and/or how accurate or how effective the final product is Quantity - how much work is produced Timeliness - how quickly, when, or by what date the work is produced Cost effectiveness - dollar savings to the organization or working within a budget |
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Employee performance |
Managers need to help translate the organization’s business goals, objectives and performance standards to individual employee goals. Interactions and feedback from managers, whether employees feel personally connected to the work and the culture of the organization |
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Performance appraisals |
Measures the degree to which an employee accomplished work requirements |
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What to performance appraisals accomplish? |
Provide feedback and counseling Help in allocating rewards and opportunities Help in determining employees’ aspirations and planning development needs |
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Performance appraisals can: |
Improve productivity through constructive feedback Identifying training and development needs Communicate expectations Foster commitment and mutual understanding |
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Individual Appraisals |
1) observe employee performing the job 2) identify and record strengths and areas of improvement 3) rate employee on progress toward previously stated objectives 4) provide reinforcement and corrective feedback on employee performance 5) set goals for performance improvement |
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Appraisal methods |
Category rating method (Graphic scale, Checklist, Forced choice) Comparative methods (ranking, paired comparison, forces distribution) Narrative methods (essay, critical incidents, field review) Management by objectives Behaviorally anchored rating scale |
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Category rating methods |
The least complex means of appraising performance. The appraiser marks an employee’s level of performance on a designated form. Graphic scale- appraiser checks the appropriate place on the scale for each task (1-5 scale) with a comment section Checklist - appraiser is given a list of statements or words and checks the items on the list that describes the characteristics and performance of the employee Forced choice - variation of the checklist method. Appraiser is required to check two or four statements. One that the employee is most like and one that the employee is least like |
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Comparative methods |
Compares the performance of each employee with that of others. Ranking - appraiser lists all employees from the highest to lowest. Paired comparison- each employee is paired with every other employee and compared, one at a time, using the same scale for performance Forced distribution- employees are rated and placed at different % points along a bell-shaped curve |
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Narrative methods |
Appraiser submits written narrative performance appraisals. Essay- appraiser writes a short essay describing the performance of each employee during the eating period Critical incidents- a record of employee actions is kept in addition to actual ratings. Both positive and negative actions are recorded for the entire rating period. Time consuming Field review- supervisor and HR professional cooperate in this method. The HR professional interviews the supervisor and takes notes concerning the performance of each employee. |
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Management by objectives (MBO) |
The employees help set objectives for themselves, defunding what they intend to achieve within a specified time period. The objectives are based on overall goals and objectives for the organization |
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Behaviorally anchored rating scale (BARS) |
Designed to overcome the problems of category rating by describing examples of desirable and undesirable behavior. More accurate gauge Clearer standards Feedback Independent dimentions |
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Comparative methods |
Compares the performance of each employee with that of others. Ranking - appraiser lists all employees from the highest to lowest. Paired comparison- each employee is paired with every other employee and compared, one at a time, using the same scale for performance Forced distribution- employees are rated and placed at different % points along a bell-shaped curve |
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Narrative methods |
Appraiser submits written narrative performance appraisals. Essay- appraiser writes a short essay describing the performance of each employee during the eating period Critical incidents- a record of employee actions is kept in addition to actual ratings. Both positive and negative actions are recorded for the entire rating period. Time consuming Field review- supervisor and HR professional cooperate in this method. The HR professional interviews the supervisor and takes notes concerning the performance of each employee. |
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Management by objectives (MBO) |
The employees help set objectives for themselves, defunding what they intend to achieve within a specified time period. The objectives are based on overall goals and objectives for the organization |
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Behaviorally anchored rating scale (BARS) |
Designed to overcome the problems of category rating by describing examples of desirable and undesirable behavior. More accurate gauge Clearer standards Feedback Independent dimentions |
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Advantages of appraisal tools |
Graphic scales- simple and provide quantitative rating for each employee Ranking- simple Forced distribution- predetermined number of people into each group Critical incidents- helps specify what is right and wrong about employee’s performance and forces supervisor to evaluate on an ongoing basis MBO- tied to jointly agreed upon performance objectives BARS- behavioral anchors are very accurate |
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Disadvantages of appraisal tools |
Graphic scales- standards may be unclear Ranking- cause disagreements among employees and maybe unfair if all employees are excellent Forced distribution- depend on the adequacy of the original choice of cutoff points Critical incidents- difficult to rate or rank employees relative to one another MBO- time consuming to implement BARS- difficult to develop |
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Errors in performance appraisals |
Halo/horn effect - employee is extremely competent in one area and is therefore rated high in all categories and vice versa Recency- gives more weight to recent occurrences and discounts or minimizes the employee’s earlier performance during the appraisal period Primacy- appraiser gives more weight to the employee’s earlier performance and discounts recent occurrences Bias- appraiser’s values, beliefs or prejudices distort ratings Strictness- reluctant to give high ratings. Appraiser has higher expectations than appraiser of the same performance in other departments Leniency- appraisers who do not want to give low scores Central tendency- appraiser rates all employees within a narrow range Contrast- employee’s rating is based on how their performance compares to other employees instead of an objective performance standard |
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Succession planning |
An important talent management strategy to help identify and foster the development of high potential employees. Focus on positions that are critical to the future needs of the organization. |
12-36 months Candidate with the best development potential |
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Career management |
Succession plans help to ensure that individuals in specific talent pools obtain the insights, awareness, and field experience necessary to make ongoing contributions to the organization |
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Replacement planning |
Concentrated on immediate needs and a snapshot assessment of the availability of qualified backups for individuals in key positions |
0-12 months Best candidate available |
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Knowledge management |
Process of creating, acquiring, sharing and managing knowledge to augment individual and organizational performance Focused on: expertise sharing and organizational learning and knowledge retention and the reduction of knowledge loss due to employee attrition |
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Knowledge management informal system |
Arises as employees and teams gain experience and develop the ability to recognize and identify critical information, best practices and experiences. Tend to be based on personal networks and consist heavily of personal contact information |
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Knowledge management formal system |
Characterized by a structured, formal procedure for capturing information and specific repository for the information that is gathered |
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Employee relations |
A trend associated with human resource management— a movement toward an employer-employee relationship that is marked by trust, respect and employee empowerment |
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Radicalism |
A belief that management-labor conflict is an inherent characteristic of capitalism and can be resolved only with a change in the economic system |
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Pluralist |
There are multiple forces at work in the labor relationship, each with its own agenda. Employers who must coordinate their business strategies with unions, employee groups, and government bodies are operating in a pluralist framework |
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Unitarist |
A belief that employers and employees can act together for the common good. |
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Intellectual property |
The ownership of innovation by an individual or business enterprise. In an enterprise, IP is the product of employee creativity and enterprise resources. IP includes patented, trademarked or copyrighted property such as inventions and processes, graphical images and logos, names, indications of geographic origin, architectural designs, and literacy and artistic works. |
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International Labor Organization (ILO) |
ILO standards serve as the foundation for the vast majority of employment laws and acceptable management practices throughout the world, and they should, therefore, play a key role in business decision making. |
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Employment contracts |
Employer and employee rights and responsibilities are defined and agreements may be documented through employment contracts. Norm in many countries. Must be formally amended. |
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Employee at will |
In the US, unlike other countries, most employees work on an at-will basis. The employers have the right at any time, with or without prior notice, to fire, demote, or promote whomever they choose for no reason or any reason. |
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Public policy exemption to EAW |
Employees may NOT be fired without cause if this would violate state or federal laws. So terminations that can be proven to be in violation of a federal anti-discrimination law would not be protected under the at-will doctrine. |
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Union acceptance |
Unions may be a fact of life in some countries, something over which employers have little control. By involving unions, employers may lower employees’ resistance to necessary changes and implement change initiatives more easily. |
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Data privacy |
Legitimacy- necessity of data collection and employee consent to its collection Proportionality- collection of only relevant and sufficient data Finality- used for a stated purpose Notice to employees of collection and use of data Accuracy and retention- currency of information and maintained only Security of collected data Access by employees to their own data |
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7 approaches to managing the workforce relationship that global enterprises may develop |
Hands off- the workforce relationship is entirely locally managed Monitor- HQs tracks local management decisions and demonstrates its interest and concerns, but leaves decision to be made locally Guide and advise- HQs offers more advice and tries to apply global policies to local practices, but still leaves decisions at the local level Strategic planning- employee relations strategy is developed with an understanding of variation among workforces throughout the enterprise Set limits and approve exceptions- some local adaptations may be made but only after review and approval by HR Integration of HQs and line management in field- labor decisions are made jointly Manage locally from HQs- in the centralized or standardized alternative, local HR staff simply implement, without change, HQs developed HR policies and practices |
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UN Global Compact |
Adopted by the UN General Assembly in 2000, it is a policy framework designed to help business develop, implement, and disclose policies and practices that meet sustainable goals in the areas of human rights, labor, environment and anti corruption |
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International Labor Organization |
Grants representation to governments, employers, and worker groups. These constituents shape policies and programs related to four strategic objectives: fundamental principles and rights at work, greater opportunities for men and women to decent employment and income, effective of social protections for all. |
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Organisation for Economic Co-operation and Development (OECD) |
Help both member and nonmember countries address globalization issues by researching and promoting changes in environmental, social and economic policy. |
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World Trade Organization (WTO) |
Open trade opportunities and to facilitate resolution of trade disputes. Form of negotiated agreements. Freedom of association, no forced labor, no child labor and no discrimination at work. |
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Data privacy |
Maintaining the privacy of personal data has become a workplace issue and the subject of regulation due to processes becoming automated, the collection and storage of data ha increased. |
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European Union directive 95/46/EC |
Privacy is a basic right that the government is expected to protect. Legitimacy, proportionality, finality, notice to employees of collection and use of data, Accuracy and retention, security of collected data, access by employees to their own data |
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Separation of employment |
Includes termination of the employment relationship due to voluntary reasons and involuntary reasons. Considered high risk activity by HR. |
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Dismissals of employees may include? |
Reduction in force (RIF) /Workforce reductions (WFR)- permanent reductions in employee head count Layoffs- intended as temporary employment separation. Employees may be recalled to work. |
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Independent contractors |
Gain greater workplace flexibility or manage uncertainty associated with entering a new market. These workers may be seen as employees in some countries’ laws. |
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Characteristics of a sustainable workforce |
Trust Respect Well-Being Communication Rewarding Focused on improvement Employee involvement |
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3 levels of employee involvement |
Suggestion involvement- allows employees to suggest but not enact changes. This is the most commonly used form of employee involvement and is seen in organizational structures such as quality circles, safety committees, or employee participation groups to make recommendations for action to management. Job involvement- allows employees control over their daily work. The use of self-managIng teams. High involvement- allows employees to participate in managing the organization. This requires that employees have the power to make decisions, but it also requires more transparency. |
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Examples of feedback/ communication mechanisms |
Attitude (climate) and opinion surveys Skip-level interviews- managers spend time with employees two levels below them on an annual basis. Facilitates upward communication Open-door/person-to-person meetings- meetings initiated by an employer or employee and can be held in locations other than the superior’s office Department/unit communication meetings- often used of regular upward communication. Employees within a particular unit are asked to meet with the manager to discuss current developments and seek areas of improvement |
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Best definition of sustainable employee relationship |
Employers are able to operate profitably and offer full employment for the foreseeable future |
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Major challenge for global organizations in establishing sustainable employee relationships |
Balancing standardization and localization |
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Labor or trade union |
A group of workers who coordinate their activities to achieve common goals (better wages, hours or working conditions) |
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Unions have responded to globalization by: |
Increasing formal international of unions Pressing for national and international compliance with labor laws Implementing international framework agreements Forming networks and alliances |
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World Federation of Trade Unions (WFTU) |
Previously composed of unions from Communist countries but now focuses on unionizing in developing countries. Holds consultative status with the OECD. |
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International Trade Unions Confederation (ITUC) |
The world’s largest union federation. It focuses on promoting international cooperation among trade unions and global campaigning and advocacy within global institutions. |
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UNI Global Union |
Founded in 2000 to represent service-sector employees around the world. It includes 900 affiliated unions located in 150 countries. |
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International Framework Agreements |
They are negotiated between unions, global union federations (GUFs), and multinational enterprises. The enterprises commit to core labor standards, the GUFs can help maintain the agreement by negotiating proactively or calling public attention to the violation. |
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Work councils |
Permanently bodies composed of workplace members that represent employees, generally on a local or firm level. Primary purpose is information and consultation to receive from employers and to convey to employees information that might affect the workforce and health of the enterprise. |
No work councils in the US violation of section 8(a)(2) of the National Labor Relations Act |
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Work councils structures |
Both management and worker representatives Only worker representatives who are overseen by a member of management Only worker representative with no management oversight |
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Code termination |
A form of corporate governance that requires a two tiered corporate board structure. A typical management board and a supervisory board that allows management and employees to participate in strategic decision making. |
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3 models of code determination |
Dual system- a management board and supervisory board. Half of the supervisory board members may be workers. Single tier system- there is only one board of directors, but employee representatives are included as members Mixed system- employee representatives are included, but they are only advisors |
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Collective bargaining |
The process by which management and union representatives negotiate the employment conditions for a particular bargaining unit. |
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Mediation (conciliation) |
A method of non binding dispute resolution involving a third party who tries to help the disputing parties reach a mutually agreeable decision. |
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Arbitration |
A negotiated procedure in which labor and management agree to submit disputes to an impartial third party and abide by the arbitrator’s decision. It’s more informal than court proceedings. |
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Arbitration |
A negotiated procedure in which labor and management agree to submit disputes to an impartial third party and abide by the arbitrator’s decision. It’s more informal than court proceedings. |
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Collective bargaining agreement (CBA) |
When negotiations are successful and result in a contract. CBA governs the day-to-day relationship of the employer and the employees in the bargaining unit for the period of time it specifies. |
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Formal grievance procedure |
Provides an orderly way to resolve the inevitable differences of opinion in regard to the union contract that develop during the life of the agreement. |
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Union density |
Percentage of workers that belong to a union |
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Primary function of a work councils |
Facilitating exchange of information and consultation |
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Industrial action |
A term from British usage and includes various forms of collective employee actions (concerted activities) taken time protest work conditions or employer actions. |
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Examples of industrial actions |
General strike- work stoppage Sit-down strike- refusal by workers to work or leave their workstations Sympathy strike- support of another union striking an employer Wildcat strike- work stoppages at union contract operations that have not been sanctioned by the union Secondary action or boycott- attempt by a union to influence an employer by putting pressure on another employer Work-to-rule- situation In which workers slow processes by performing tasks exactly to specification Picketing- positioning of employees at the place of work targeted for the action for the purpose of protest. |
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Lockout |
An employer may also voluntarily stop work at an operation though a lockout. A lockout occurs when an employer shuts down operations to prevent employees from working |
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Unfair labor practices (ULP) |
A violation of employer or employee rights under labor law. ULPs can occur with or without the presence of a union. |
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3 models in conflict resolution |
Direct confrontation- forcing resolution, appeals more to individualistic cultures Regulative- appeals to cultures that value rules like Germany Harmony- avoids direct confrontation either from passivity or concern for others, common approach to conflict resolution in collectivist societies. |
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One on one resolution |
Technique focuses on training employees to resolve their own conflicts and managers/supervisors to listen and focus on problem solving. |
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Third party resolution |
AkA alternate dispute resolution in some countries. Have a varying degrees of neutrality and formality as well as complexity. |
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Workplace retaliation |
Retaliation in the workplace is defined as when an employer, employment agency or labor organization takes an adverse action against an employee often as a result of a conflict or complaint. |
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How to prevent retaliation? |
Adopt and disseminate a strong anti-retaliation policy Inform employees about the process for reporting alleged retaliation Train managers on retaliation Remind supervisors of the organization’s policy Monitor the treatment of employees Investigate allegations and take corrective action if necessary |
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Conducting an investigation |
Ensure confidentiality Provide protection- interim protection against continued harassment or retaliation Select the investigator Create a plan- for gathering evidence and conducting interviews Develop interview questions Conduct interviews Make a decision Close the investigation Develop written summary investigation results
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Organizations can take preventive measures such as: |
Review codes of conduct before implementing them Set clear expectations Behave consistently Establish a climate of communication Maintain an open door policy |
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Constructive discipline also called progressive discipline |
A form of corrective discipline that implements increasingly severe penalties each time an employee is disciplined for any of the following during a defined period, such as: The same work rule violation A similar work rule violation A serious work rule violation A series of frequent but dissimilar work rule violations Help defend the employer against costly civil suits charging unfair behavior. |
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Sequence of constructive disciplinary actions |
1) problem solving session and open dialogue 2) first formal warning 3) 2nd warning 4) final warning 5) discharge or termination |
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Unfair labor practice (ULP) |
Violation of a labor law |
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Peer review |
An organization refers cars of serious employee infractions to a group of employees who are trained in due process. |
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What is the current state of resolution of employee complaints through 3rd parties such as labor tribunals and agencies? |
Attitudes of 3rd parties can be pro-employer in some countries and pro-employee in others |
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Information management |
Use of technology to collect, process, and condense information with a goal of efficient management of information as an organizational resource. IM evaluates the kinds of data/information an organization requires in order to function and progress effectively. |
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Business process integration |
Business-to-business (B2B) e-commerce is any activity or program conducted between businesses through the use of a computer network connection instead of an intermediary. B2B will become the dominant model as organizations fully develop enterprise application integration. |
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E-procurement |
Use of the electronic communications and transaction processing when buying supplies and services. The numerous flexible features of e-procurement web-based technologies streamline the processes and increases efficiency and compliance by using intuitive pages and powerful search capabilities to guide requesters through the steps of procurement. |
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Electronic signatures |
ESIGN facilitates the legal use of electronic signatures, or e-signatures in the U.S. The act enables organizations to legally use e-signatures on electronic documents. |
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Electronic record keeping |
Numerous challenges in complying with legal requirements for employer record keeping and retention of employee files and other employment related records. |
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Software as a service (SaaS) |
Software that is owned, delivered, and managed remotely by one or more providers. The software is delivered over the Internet, rather than installed on a computer, to contracted customers at any time, on a pay to use basis or as a subscription based on use metrics. |
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Cloud computing |
A broader term for a style of computing in which scalable IT-enabled capabilities are delivered as a service using Internet technologies. Cloud repositions software as a service to be confused, not a product to be managed. |
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License |
Client buys a license and implements and customizes software. Client owns both data and application. |
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SaaS |
Built for multiagency—all clients share one instance of software. Client owns data, vendor owns application. |
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Outsourcing |
Entire business process is managed by vendor. Client owns data, vendor owns application. |
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Mobile learning |
Digitized instructional content delivered to wireless mobile devices. It facilitates learning with materials and resources that learners can access wherever and whenever they choose. |
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Bring your own device |
Policy of permitting employees to bring their own computing devices to the workplace and to use those devices for connectivity on the organization’s secure network. |
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Bring your own device |
Policy of permitting employees to bring their own computing devices to the workplace and to use those devices for connectivity on the organization’s secure network. |
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Gamification |
Premise that doing and playing enhances learning, gamification is the selective use of game design and game mechanics to drive employee engagement in non-gaming business scenarios. |
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Workplace engagement of the future |
The impact technology will have over the actual space where people work. Working from home. |
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Tools for collaboration and information sharing |
Workplace trend toward greater collaboration among employees and the use of teams means that organizations’ technologies must support information sharing, virtual meeting technology, and wikis. |
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Blogs |
A broadcast-style communication that enables authors to publish articles, opinions, product or service reviews, etc. can be delivered through stand-alone websites, emails, feed syndication systems and social networks. |
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Social media |
Term for an online environment in which content is created, promoted, distributed, or shared for purposes that are primarily related to communities and social activities. |
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Social networking |
Enables individuals to connect to their social communities. Members share experiences, interests, opinions and present information and personal content. |
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Self service human resource systems |
Allows employees to handle many job related tasks such as updating personnel data using technology. |
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HRIS |
Type of technology that supports HR functions and enables HR to gather, store, maintain, retrieve and revise HR data. Great potential to increase efficiency, improve results, and lower costs. |
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HRIS is a valid consideration if there are organizational needs to: |
Free HR time for more strategic work Have employees take charge of their own HR activities Replace a legacy system |
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Build HRIS |
Two primary conditions that favor in-house development are: The organization has a unique business need Functional and technical skills are available in-house to develop the technology |
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Customize HRIS |
A customized off the shelf system (COTS) is a practical selection when the business requirements are standard and there is functional expertise in-house. |
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Outsourcing HRIS |
Procuring a system from an external vendor is a consideration if there are organizational requirements for a robust solution and functional and technical skills are not available in-house. |
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On premise |
The organization purchases and installs hardware and software on internal machines, supported by internal IT staff. |
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Hosted |
Applications are purchased and installed for the organization, but they are located at the vendor’s site and supported by external IT staff. |
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Software as a service |
The firm does not purchase or install any software. Instead, the organization subscribed to software that is developed and deployed remotely over the Internet and accessed via web browser. |
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HR portals |
Provide a single, targeted, and often customized entry point via the internet for each employee to access resources, applications, and data relevant to his or her own personal situation. |
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Employee self service (ESS) |
Provide employees access to their personal HR data and the ability to handle many questions and job related transactions that otherwise would fall to management or administrative staff. |
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Employee self service (ESS) |
Provide employees access to their personal HR data and the ability to handle many questions and job related transactions that otherwise would fall to management or administrative staff. |
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Manager self service (MSS) |
Tools that are also largely accessed via a portal. Allows supervisors to handle many HR transactions online and receive HR reports in real time. |
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Decision maker access |
To create reports and to support managerial decision making. Data warehouses and data mining tools also provide capabilities to support strategic decision making. |
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Dashboard |
Reporting mechanism that aggregate and display metrics and KPIs, providing a quick overview before further investigation using additional business analytics tools. |
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Best of breed |
Organization works with multiple vendors to supply its HRIS functionality. For example, recruiting, time and attendance, and payroll applications come from three different vendors. |
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Telepresence |
The best groupware to simulate the human experience of being fully present at a meeting remotely |
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Groupware |
An umbrella term for specialized collaborative software applications. Teleconference- application that delivers a simultaneous presentation to multiple sites distributed via audio Videoconferencing- uses interactive telecommunications technologies to simulate a face to face communication or meeting without having to be in the same location. Web-conferencing- facilitates real time interactions that take place over the Internet using integrated audio and video, chat tools, and application sharing. Multifaceted groupware- relies on VoIP and presentation software and social media Telepresence- highly integrated, multi monitor, multi microphone, and multi channel speaker systems that present interactive video and audio between locations with near life like audio quality and with bear life size video images. |
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