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Strategic Management Module q. What is Strategic Management? q. Is there such a thing Strategic Management Module q. What is Strategic Management? q. Is there such a thing as Non-Strategic Management? q. More about the Management of Company Competitive Position than People Management © SHRM 1 -1

Synonyms for Strategic Long term Big Picture Competitive Positioning © SHRM 1 -2 Synonyms for Strategic Long term Big Picture Competitive Positioning © SHRM 1 -2

Why is this module important? 12% PHR (27 questions) 29% SPHR (65 questions) © Why is this module important? 12% PHR (27 questions) 29% SPHR (65 questions) © SHRM 1 -3

Topics • 1. 1 The role of HR in organizations (Bit of a miscellaneous Topics • 1. 1 The role of HR in organizations (Bit of a miscellaneous category) • 1. 2 The strategic planning process • 1. 3 Assessing the Internal Environment • 1. 4 Environmental Scanning • 1. 5 Evaluating HR’s Strategic Contributions • 1. 6 Ethical issues affecting HR • 1. 7 HR and the Legislative/Regulatory Environment

HR Roles Historical: • Advice • Service • Control Current: • Strategic • Operational HR Roles Historical: • Advice • Service • Control Current: • Strategic • Operational • Administrative 1. 1. 1 Evolving Role of the HR Professional in Response to Today’s More Strategic Focus © SHRM 1 -5

Which role does HR play when it anticipates the effects of changes in the Which role does HR play when it anticipates the effects of changes in the organization’s products and delivery channel? A. B. C. D. Strategic Operational Service Administrative Answer: A © SHRM 1 -6

1. 1 The role of HR in organizations THE SHRM www. shrm. org q. 1. 1 The role of HR in organizations THE SHRM www. shrm. org q. Founded as ASPA in 1948 q. Now the world’s largest association devoted to HRM representing more than 200 thousand members. © SHRM 1 -7

1. 1 The role of HR in organizations The SHRM Mission q. Serving the 1. 1 The role of HR in organizations The SHRM Mission q. Serving the HR professional – Providing essential and comprehensive resources q. Unified Force in Advancing the HR profession – Ensuring that HR is an essential and effective partner in executing organizational strategy © SHRM 1 -8

1. 1 The role of HR in organizations HR as a Profession Characteristics of 1. 1 The role of HR in organizations HR as a Profession Characteristics of a profession include: q A national organization. q A code of ethics. q Ongoing research. q A body of knowledge/aka best practices. q Credentialing. © SHRM 1 -9

1. 1. 3 Dimensions of Change HR q Workforce composition q Globalization q Emphasis 1. 1. 3 Dimensions of Change HR q Workforce composition q Globalization q Emphasis on ethics q Flexible organizational boundaries q Require: – Strategic HR perspective – Alignment of human capital and corporate strategy – Technology

1. 1. 4 KEY TRENDS in HR q. Downsizing/Offshoring/Globalization q. Mergers, Acquisitions & Divestitures 1. 1. 4 KEY TRENDS in HR q. Downsizing/Offshoring/Globalization q. Mergers, Acquisitions & Divestitures

Key Trend: Offshoring SPHR only • Domestic HR challenges – Displaced workers – Increased Key Trend: Offshoring SPHR only • Domestic HR challenges – Displaced workers – Increased HR workload – Decline in employee morale – Shortage of employees in positions vulnerable to offshoring © SHRM • International HR challenges – Recruiting, managing, and motivating the new workforce – Communication and coordination across time zones − Cultural issues 1 -12

Key Trend: Mergers, Acquisitions, and Divestiture SPHR only 1. Identify issues, form and train Key Trend: Mergers, Acquisitions, and Divestiture SPHR only 1. Identify issues, form and train teams, and prepare for change. 2. Investigate cultural, structural, technological, financial, and legal risks. 3. Develop plans to address key issues. 4. Measure activity of new organization against benchmarks. © SHRM 1 -13

Management Functions 1. 1. 5 HR Management Functions Planning Forecast Set goals © SHRM Management Functions 1. 1. 5 HR Management Functions Planning Forecast Set goals © SHRM Organizing Design Assist Directing Schedule Implement Controlling Measure 1 -14

1. 1. 6 Critical Skills for HR Professionals Managing Projects Change Third Party Contractors 1. 1. 6 Critical Skills for HR Professionals Managing Projects Change Third Party Contractors (Outsourcing) Technology © SHRM 1 -15

Project Management Steps Project Management Roles Interpersonal • Leader Informational • Communicator Decisional • Project Management Steps Project Management Roles Interpersonal • Leader Informational • Communicator Decisional • Conflict resolver • Liaison • Information disseminator • Resource allocator © SHRM 1 -16

Project Planning Tool: Gantt Chart • Gantt Chart Also known as horizontal bar chart, Project Planning Tool: Gantt Chart • Gantt Chart Also known as horizontal bar chart, milestone chart, or activity chart. • Plots the sequential steps of a project against time. © SHRM 1 -17

Project Planning Tool: PERT Chart • PERT NETWORK: An arrow diagram or road map Project Planning Tool: PERT Chart • PERT NETWORK: An arrow diagram or road map identifying all major events • Shows how much time is needed to complete a project. © SHRM 1 -18

Change Management Model HR challenge: To maintain the level of intensity and consistency of Change Management Model HR challenge: To maintain the level of intensity and consistency of effort throughout the change process © SHRM 1 -19

A company must immediately downsize its workforce by 15% due to shrinking markets. What A company must immediately downsize its workforce by 15% due to shrinking markets. What important role will HR play during the process? A. Form new work teams based on the gaps created by the layoffs. B. Summarize industry trends and communicate them to employees. C. Ensure that top management regularly communicates with employees. D. Launch a new quality initiative to preserve customer satisfaction. Answer: C © SHRM 1 -20

The Outsourcing Process 1. Analyze needs and define goals. 2. Define budget. 3. Create The Outsourcing Process 1. Analyze needs and define goals. 2. Define budget. 3. Create RFP. 4. Send RFPs to contractors. 5. Evaluate contractor proposals. © SHRM 6. Choose contractor. 7. Negotiate contract. 8. Implement and monitor. 9. Evaluate. 1 -21

Managing Technology Trends Business process integration E-procurement Electronic signatures © SHRM Electronic record keeping Managing Technology Trends Business process integration E-procurement Electronic signatures © SHRM Electronic record keeping Application service providers (ASPs) 1 -22

Strategic Planning Process • Defines where the organization is now, where it wants to Strategic Planning Process • Defines where the organization is now, where it wants to be, and how it will get there. • Gathers internal and external information. • Develops alternative strategies. • Selects appropriate strategies. • Implements a plan. • Evaluates and revises the plan as needed. © SHRM 1 -23

Phase 1: Strategy Formulation • Develop vision and mission statements. • Define organizational values. Phase 1: Strategy Formulation • Develop vision and mission statements. • Define organizational values. © SHRM Must understand: • What business the company is in. • When to change the mission and alter strategy. • How and when to communicate the mission. 1 -24

Phase 2: Strategy Development • Conduct a SWOT analysis, including environmental scan. • Establish Phase 2: Strategy Development • Conduct a SWOT analysis, including environmental scan. • Establish long-term objectives (three to five years). • Identify corporate, unit, and functional strategies. © SHRM S = Internal strengths W = Internal weaknesses O = External opportunities T = External threats 1 -25

Phase 3: Strategy Implementation • Establish short-term objectives (six months to a year). • Phase 3: Strategy Implementation • Establish short-term objectives (six months to a year). • Develop action plans. • Allocate resources. • Motivate employees. © SHRM Resources needed to achieve objectives: • Financial • Physical • Human • Technological 1 -26

Phase 4: Strategy Evaluation • Review strategies at planned intervals. • Measure performance. • Phase 4: Strategy Evaluation • Review strategies at planned intervals. • Measure performance. • Take corrective action. • Assess strategies by noting changes in: – Internal strengths and weaknesses. – External opportunities and threats. • Take corrective action when changes have occurred. © SHRM 1 -27

Which of the following activities best prepares HR to participate in the strategic planning Which of the following activities best prepares HR to participate in the strategic planning process? A. Evaluating a new HRIS system B. Restructuring HR’s recruiting system C. Training line managers on interviewing techniques D. Reviewing the company’s key financial data Answer: D © SHRM 1 -28

Understanding the Internal Environment • Understand the perspective of your business partners. • Create Understanding the Internal Environment • Understand the perspective of your business partners. • Create communication and collaboration. • Identify internal needs and emerging issues. © SHRM 1 -29

Finance and Accounting • Finance helps business units with financial needs. – Pricing products Finance and Accounting • Finance helps business units with financial needs. – Pricing products – Creating financial models • Accounting balances the checkbook of the company. – Accounts receivable – Accounts payable © SHRM 1 -30

Budgeting Methods Incremental Formula Zero-based © SHRM • Prior budget and newly identified needs Budgeting Methods Incremental Formula Zero-based © SHRM • Prior budget and newly identified needs are the basis for funding. • Usually stated as a percentage of increase or decrease to general funding. • All objectives and operations are ranked and funds are allocated according to rank. • Budgets start at zero; all expenses must be justified. 1 -31

Balance Sheet Summarizes the firm’s financial position. • Basic form of the sheet is: Balance Sheet Summarizes the firm’s financial position. • Basic form of the sheet is: Assets = Liabilities + Equity. • Every financial transaction is an exchange, and both sides are recorded. • Only records transactions measured in money. © SHRM 1 -32

Balance Sheet Assets Current assets Fixed assets Investments Total assets $310, 000 $70, 000 Balance Sheet Assets Current assets Fixed assets Investments Total assets $310, 000 $70, 000 $20, 000 $400, 000 Liabilities and equity Current liabilities Equity Total liabilities and equity © SHRM $145, 000 $255, 000 $400, 000 1 -33

Income Statement Explains revenues, expenses, and profits over a specified period of time. • Income Statement Explains revenues, expenses, and profits over a specified period of time. • Basic form of the statement is: Revenues – Expenses = Net income. • Some expenses are never cash outflows (depreciation). • Some expenses may be paid partly in one period and partly in another (cost of goods sold). • Owner withdrawals are distributions, not operating expenses. © SHRM 1 -34

Income Statement Gross sales Less cost of goods sold Gross profit Less expenses: Salaries Income Statement Gross sales Less cost of goods sold Gross profit Less expenses: Salaries Rent Utilities Depreciation Interest Income less expenses Income tax expense Net income © SHRM $360, 000 $240, 000 $120, 000 $50, 000 $20, 000 $18, 000 $7, 200 $1, 800 $3, 000 $70, 000 $28, 000 $42, 000 1 -35

Marketing and Sales Marketing: Plan, price, promote, and distribute goods and services. Product Promotion Marketing and Sales Marketing: Plan, price, promote, and distribute goods and services. Product Promotion Key elements Price © SHRM Place Sales: Sell the organization's product to the marketplace. 1 -36

Operations Capacity Standards Control Key concepts Inventory © SHRM Scheduling • Goal: To provide Operations Capacity Standards Control Key concepts Inventory © SHRM Scheduling • Goal: To provide goods and services to customers. • Focuses on productivity, quality, cost, delivery, and performance. • Affected by supply chain management. 1 -37

A company commits to answering all phone calls within 15 seconds. Which operational concept A company commits to answering all phone calls within 15 seconds. Which operational concept deals with observing and documenting actual results? A. B. C. D. Capacity Inventory Scheduling Control Answer: D © SHRM 1 -38

Information Technology Enables an organization to use information to support its strategic objectives. • Information Technology Enables an organization to use information to support its strategic objectives. • Strategic information systems are designed to achieve competitive superiority. − Airline reservation systems • Operational systems focus on reducing costs or improving productivity. − Remote access systems that allow telecommuting © SHRM 1 -39

Employees Engagement • Employees’ willingness to “go the extra mile” • How employees describe Employees Engagement • Employees’ willingness to “go the extra mile” • How employees describe the organization • Whether employees choose to remain • How employees work © SHRM Human Capital • Combined knowledge, skills, and experience of employees • Leads to creativity and competitive advantage. 1 -40

1. 3. 3 Evolution (Life Cycle Influences) of Organizations and HR Emphasis © SHRM 1. 3. 3 Evolution (Life Cycle Influences) of Organizations and HR Emphasis © SHRM 1 -41

Evolution of Organizations © SHRM 1 -42 Evolution of Organizations © SHRM 1 -42

1. 3. 4 Competitive Advantage Strategies Cost Leadership Focus Differentiation Human Capital Customer Intimacy 1. 3. 4 Competitive Advantage Strategies Cost Leadership Focus Differentiation Human Capital Customer Intimacy © SHRM 1 -43

Cost Leadership Strategy Goal: To be the low-cost producer • Requires: – Exploitation of Cost Leadership Strategy Goal: To be the low-cost producer • Requires: – Exploitation of all sources of cost advantage. – Efficiency and productivity. – Sharing of information. – Centralized decision making. – Cross-training and job rotation. – Process improvements. © SHRM 1 -44

Differentiation Strategy Goal: Attempt to set the product apart from its competition by giving Differentiation Strategy Goal: Attempt to set the product apart from its competition by giving it unique characteristics for which customers will pay a premium price • Requires: – – © SHRM Reduced costs in areas not related to differentiation. Strong research and development and marketing. Product knowledge and quality training. Decentralized decision making for quicker speed to market. 1 -45

Other Strategies Focus Human capital advantage Customer intimacy © SHRM • Emphasis on a Other Strategies Focus Human capital advantage Customer intimacy © SHRM • Emphasis on a buyer group, a segment of the product line, or a specific market • Investment in people • Emphasis on understanding customer needs and helping them get the most out of their products 1 -46

1. 3. 5 Organizational Structural Dimensions Specialization Departmentation Authority and Reporting Issues Centralization vs 1. 3. 5 Organizational Structural Dimensions Specialization Departmentation Authority and Reporting Issues Centralization vs Decentralization © SHRM 1 -47

Specialization and Departmentalization • Specialization: Degree to which processes are divided into tasks and Specialization and Departmentalization • Specialization: Degree to which processes are divided into tasks and grouped into jobs – Balances need for productivity with employee satisfaction • Departmentalization: The way an organization groups jobs so work can be coordinated – Functional, divisional, or matrix © SHRM 1 -48

Functional Structure © SHRM 1 -49 Functional Structure © SHRM 1 -49

Divisional Structure © SHRM 1 -50 Divisional Structure © SHRM 1 -50

Matrix Structure © SHRM 1 -51 Matrix Structure © SHRM 1 -51

Authority and Reporting Issues Chain of Command Span of Control • Line of authority Authority and Reporting Issues Chain of Command Span of Control • Line of authority within an organization • Defines the boundaries within which a manager can make decisions • Number of individuals who report to a supervisor © SHRM – Narrow span (“tall” organization) – Wide span (“flat” organization) 1 -52

Centralization and Decentralization Formalization: Degree of discretion individuals have over the way in which Centralization and Decentralization Formalization: Degree of discretion individuals have over the way in which they do their jobs. © SHRM 1 -53

1. 4 Environmental Scanning (The OT for SWOT) © SHRM 1 -54 1. 4 Environmental Scanning (The OT for SWOT) © SHRM 1 -54

Environmental Scanning • Interprets data related to external opportunities and threats. • Prepares HR Environmental Scanning • Interprets data related to external opportunities and threats. • Prepares HR to participate in strategic planning. • Examines seven key factors: – – © SHRM Demographic Economic Employment International – Political – Social – Technological 1 -55

Demographic Factors • Age • Gender • Generational differences • Population shifts • Ethnicity Demographic Factors • Age • Gender • Generational differences • Population shifts • Ethnicity © SHRM • Unskilled labor • Nontraditional labor force 1 -56

Economic Factors GDP Interest rates CPI Economic Factors Inflation © SHRM Disposable income 1 Economic Factors GDP Interest rates CPI Economic Factors Inflation © SHRM Disposable income 1 -57

Employment Factors • Attitude toward careers • Immigration • Occupational and industry shifts • Employment Factors • Attitude toward careers • Immigration • Occupational and industry shifts • Recruitment © SHRM • • Unions Unemployment Turnover Relocation 1 -58

International Factors • • European Union Wage comparisons Trade agreements International labor law • International Factors • • European Union Wage comparisons Trade agreements International labor law • Globalization © SHRM 1 -59

Other Factors Social Political • Legislation and regulatory guidelines © SHRM • Changing definition Other Factors Social Political • Legislation and regulatory guidelines © SHRM • Changing definition of families • Strain on health-care systems Technological • Advances • Skills • “Digital divide” • Process changes 1 -60

Stopping Point © SHRM st 1 Night 1 -61 Stopping Point © SHRM st 1 Night 1 -61

1. 5 Evaluating HR’s Strategic Contributions © SHRM 1 -62 1. 5 Evaluating HR’s Strategic Contributions © SHRM 1 -62

ROI Measures the economic return on a project or investment. ROI = © SHRM ROI Measures the economic return on a project or investment. ROI = © SHRM 1 -63

Cost-Benefit Analysis • Determines the financial impact that programs have on company profitability. • Cost-Benefit Analysis • Determines the financial impact that programs have on company profitability. • Presents data as a ratio. © SHRM 1 -64

Break-Even Analysis Determines the point in time at which total revenue associated with an Break-Even Analysis Determines the point in time at which total revenue associated with an HR program is equal to the total cost of the program. * Time = The period of time for which the return is being analyzed. © SHRM 1 -65

HR is launching a company-wide training initiative. How can HR determine when the anticipated HR is launching a company-wide training initiative. How can HR determine when the anticipated revenue return will exceed the cost of developing the program? A. B. C. D. Calculate gross margin. Calculate return on investment. Conduct a cost-benefit analysis. Conduct a break-even analysis. Answer: D © SHRM 1 -66

Balanced Scorecard Customers Finance Mission Vision Values Learning and growth © SHRM Business processes Balanced Scorecard Customers Finance Mission Vision Values Learning and growth © SHRM Business processes • Aligns business function measures with organizational strategies. • Measures the effectiveness of a department or the entire company. • Considers perspective of all stakeholders. 1 -67

For a balanced scorecard system to be implemented effectively, it should A. be introduced For a balanced scorecard system to be implemented effectively, it should A. be introduced simultaneously to all divisions and departments. B. start at the bottom of the organization and work its way to the top. C. focus on specific measures that support business strategies. D. concentrate on tracking and reporting financial results. Answer: C © SHRM 1 -68

HR Audit • Analyzes effectiveness and efficiency of HR programs. • Keeps executives current HR Audit • Analyzes effectiveness and efficiency of HR programs. • Keeps executives current on HR activities. • Allows HR managers to cut or enhance programs and address noncompliance. • Conducted by HR staff or a third-party contractor. © SHRM 1 -69

Other Measurement Methods • Organization’s most important issues (e. g. , dollar sales per Other Measurement Methods • Organization’s most important issues (e. g. , dollar sales per employee or percentage of workforce that is unionized) • Human capital ROI • Turnover cost • Compensation as a percentage of operating expense © SHRM • Training investment factor • Time to start • Cost per hire 1 -70

Inductive and Deductive Reasoning • Inductive (from specific to general) – Looks at a Inductive and Deductive Reasoning • Inductive (from specific to general) – Looks at a set of observations and designs a rule. – Joe, John, and Mary are top salespeople and have accounting backgrounds. Therefore, for this job accounting background indicates success. © SHRM • Deductive (from general to specific) − Starts with a general rule and deduces specific instances. − Research shows that units led by controlling managers have decreased morale. John is a controlling manager. His unit will suffer morale problems. 1 -71

Primary and Secondary Research Primary (data gathered firsthand) • • Secondary (data gathered by Primary and Secondary Research Primary (data gathered firsthand) • • Secondary (data gathered by others) Experimental Pilot projects Surveys Interviews Focus groups Direct observation Testing © SHRM • • • Secondhand reports Historical data Purchased data Professional publications Benchmarking Best-practices reports 1 -72

Scientific Method 1 • Problem analysis 2 • Hypothesis formulation 3 • Experimental design Scientific Method 1 • Problem analysis 2 • Hypothesis formulation 3 • Experimental design 4 • Data collection 5 © SHRM • Data analysis 1 -73

Step 1: Problem Analysis • State the problem as a question. • Identify key Step 1: Problem Analysis • State the problem as a question. • Identify key factors that contribute to the problem. – “Why are there so many voluntary terminations? ” © SHRM 1 -74

Step 2: Hypothesis Formulation • Restate problem as a testable prediction. – “Voluntary terminations Step 2: Hypothesis Formulation • Restate problem as a testable prediction. – “Voluntary terminations are high because of low job satisfaction. ” • State the relationship between two factors that can be tested. © SHRM 1 -75

Step 3: Experimental Design (Classic) • Subjects are randomly assigned to two equal groups. Step 3: Experimental Design (Classic) • Subjects are randomly assigned to two equal groups. • Experimental group is exposed to the variable; control group is not exposed to the variable. Experimental group O Control group © SHRM R R O X O O 1 -76

Step 3: Experimental Design (Quasi-Experimental) • Subjects are not assigned at random. • Experimental Step 3: Experimental Design (Quasi-Experimental) • Subjects are not assigned at random. • Experimental group is exposed to the variable; control group is not exposed to the variable. Experimental group Control group © SHRM O O X O O 1 -77

Steps 4 and 5: Data Collection and Analysis Step 4: Data Collection • Data Steps 4 and 5: Data Collection and Analysis Step 4: Data Collection • Data is gathered through primary and secondary research methods. Step 5: Data Analysis • Data is analyzed and placed into a useful context. – Quantitative analysis: Based on facts and statistics – Qualitative analysis: Based on attitudes, opinions, and feelings © SHRM 1 -78

Descriptive Statistics: Measures of Central Tendency © SHRM 1 -79 Descriptive Statistics: Measures of Central Tendency © SHRM 1 -79

Given the following data, what is the mode? 2 A. B. C. D. 3 Given the following data, what is the mode? 2 A. B. C. D. 3 3 4 5 5 5 6 6 3 4 5 6 Answer: C © SHRM 1 -80

Descriptive Statistics: Measures of Variation • Provide an indicator of variation around central tendency Descriptive Statistics: Measures of Variation • Provide an indicator of variation around central tendency values. – Range: Distance between highest and lowest scores. – Percentile: Specific point that has a given percentage of cases below it. – Standard deviation: How much scores are spread out around a mean. © SHRM 1 -81

Descriptive Statistics: Measures of Association—Correlation Shows the relationship between two variables. © SHRM 1 Descriptive Statistics: Measures of Association—Correlation Shows the relationship between two variables. © SHRM 1 -82

Descriptive Statistics: Measures of Association—Regression • Refers to the effect of one variable on Descriptive Statistics: Measures of Association—Regression • Refers to the effect of one variable on another. • If two variables are related and one changes, the second will change. • This relationship is represented by a regression equation. • Regression equation is used to construct a regression line (usually a straight line) on a scatter diagram. © SHRM 1 -83

Inferential Statistics • Form a conclusion by studying a sample of the population. – Inferential Statistics • Form a conclusion by studying a sample of the population. – Population: Entire group (all employees). – Sample: Part of the population (20 random employees). – Normal distribution: Expected distribution given a random sampling of a large population. © SHRM 1 -84

Qualitative Analysis • Most useful for: – Depth of information. – Brainstorming and idea Qualitative Analysis • Most useful for: – Depth of information. – Brainstorming and idea generation. – Discovering underlying motivation, feelings, values, attitudes, and perceptions. © SHRM • Gathered from: – Interviews. – Surveys and questionnaires. – Observation, file studies, testing. 1 -85

Reliability • Ability of an instrument to measure consistently. • Test A scores are Reliability • Ability of an instrument to measure consistently. • Test A scores are more consistent. • This test is considered reliable. Test A Candidate Test B Form 1 Form 2 1 92 87 95 2 89 90 79 86 3 © SHRM 90 92 94 81 93 1 -86

Validity • Ability of an instrument to measure what it is intended to measure. Validity • Ability of an instrument to measure what it is intended to measure. • Answers the questions: – What does the instrument measure? – How well does it measure it? • A reliable instrument is not always valid. • A valid instrument is always reliable. © SHRM 1 -87

Ethics • System of moral principles and values that establish appropriate conduct. – Ethics Ethics • System of moral principles and values that establish appropriate conduct. – Ethics is not synonymous with legality. • HR assumes a key role in creating an ethical organization by: – – © SHRM Participating in the creation of an ethics policy. Determining supportive procedures and training. Creating a culture that values ethics. Conducting investigations and applying discipline. 1 -88

Which of the following would NOT be an ethical violation for an HR manager? Which of the following would NOT be an ethical violation for an HR manager? A. Recommending a qualified friend for an open position B. Telling a friend in private that layoffs will occur C. Having ownership in an outside firm under contract to the organization D. Allowing surveillance of locker room areas Answer: A © SHRM 1 -89

Ethical Issues • Board of directors’ training • Workplace privacy • Whistleblowing • Conflict Ethical Issues • Board of directors’ training • Workplace privacy • Whistleblowing • Conflict of interest • Bribes, payoffs, and kickbacks • Organizational abuse © SHRM • • Insider trading Cultural clashes Copyrights Corporate responsibility 1 -90

Legislative and Regulatory Environment • Laws are actions passed by Congress and state legislatures. Legislative and Regulatory Environment • Laws are actions passed by Congress and state legislatures. • Regulations reflect how laws will be implemented and often have the force of law. – Regulatory agencies may issue guidelines that interpret how regulations will be enforced. © SHRM 1 -91

Rule-Making Process Laws are made by legislatures, and rules are made by agencies. The Rule-Making Process Laws are made by legislatures, and rules are made by agencies. The public may comment via public hearings, conversation, e-mail, or letter for a specified time period. © SHRM 1 -92