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Strategic Management

This chapter is from the book

Chapter Summary

Functioning effectively requires a number of areas of knowledge and expertise, all of which could be grouped into three critical categories: knowing our business (organization), knowing our profession (craft), and knowing our customers. Though simply stated, much goes into mastering these three areas, if they are to be performed at a highly efficient and effective level.

This chapter addressed some of the specific areas of knowledge with which HR professionals need to become fluent. It is intended as a starting point, not an ending point. Strategic management is also an area that many HR professionals will more fully understand, appreciate, and excel at as they gain experience and expertise within their organization, as well as within their craft as they move toward the ranks of the SPHR.

Key Terms

  • Strategic management
  • Industrial relations
  • Personnel
  • Human resources
  • Administrative HR functions
  • Strategic HR functions
  • Operational/tactical HR functions
  • Henri Fayol
  • Planning function
  • Organizing function
  • Coordinating function
  • Directing function
  • Controlling function
  • Project management
  • Initiating processes
  • Planning processes
  • Executing processes
  • Controlling processes
  • Closing processes
  • Project manager
  • Project sponsor
  • Project charter
  • Project team
  • Project plan
  • Project schedule
  • Work breakdown structure (WBS)
  • Gantt chart
  • Program evaluation and review technique (CHART) charts
  • Change management
  • Outsourcing
  • Offshoring
  • Request for proposal (RFP) (see Chapter 2)
  • Third party vendor
  • HRIS
  • Globalization
  • Technology
  • Safety and security
  • Terrorism
  • Aging workforce
  • Multi-generational workplaces
  • Work/life balance
  • Changing technology—and not losing relations
  • Contingent workforce
  • Strategic planning
  • Vision
  • Mission
  • Values
  • SWOT analysis (strengths, weaknesses, opportunities, threats)
  • Environmental scanning
  • Capacity
  • Standards
  • Scheduling
  • Inventory
  • Control
  • The 4 P's:
    • Product
    • Place
    • Price
    • Promotion
  • Budgeting:
    • Incremental budgeting
    • Formula budgeting
    • Zero-based budgeting
    • Activity based budgeting
  • Assets
  • Liability
  • Equity
  • Accounts payable
  • Accounts receivable
  • Balance sheet
  • Income statement
  • Gross profit margin
  • Statement of cash flows
  • Financial ratios:
    • Business activity ratios
    • Profitability ratios
    • Debt ratios
  • Liquidity
  • Current ratio
  • Acid test
  • Gross profit margin
  • Balanced scorecard
  • Learning and growth perspective
  • Business process perspective
  • Customer perspective
  • Financial perspective
  • Organizational lifecycle
  • Introduction/birth
  • Development/growth
  • Maturity
  • Decline
  • Organizational structure
  • Formalization, or formal authority
  • Departmentalization ("departmentation")
  • Functional structure
  • Division structure
  • Matrix structure
  • Chain of command
  • Span of control
  • Centralization
  • Decentralization
  • Simple structure organization model
  • Bureaucratic organization model
  • Virtual organization model
  • Boundaryless organization model
  • Mechanistic organizations
  • Organic organizations
  • Concentrated structures
  • HR audits
  • Return on investment (ROI)
  • Cost-benefit analysis
  • Break-even analysis
  • Research
  • Primary research
  • Scientific method
  • Secondary research
  • Ethics
  • Business ethics
  • Bills
  • Joint resolutions
  • Concurrent resolutions
  • Simple resolutions
  • Lobbying

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