HRCI PHR – Business Management and Strategy – The HR Functions and Roles Part 2

11. Managing Organizational Change (6)

Now that we have completed this topic, see if you can answer these questions. Organizational change management is a systematic approach and involves the application of knowledge and resources to manage change effectively. There are several guiding principles of change management identify key principles change leaders can apply during the change management process.

Here you have the options ensure information is inspiring, regular, timely and through several channels engage all employees in the process support desired behaviors by providing coaching and counseling, reward exemplary behaviors and celebrate short term wins. Assess an organization’s culture before change of course and reward employees only after reaching long and arduous goals to keep them focused. This is the answer for you to compare. Option One this option is correct.

Communicating the need and vision for change is a key principle of change management that ensures everyone understands the need of the reasons for the change, which makes it more likely the change will be accepted. Communication should be regular and timely and done through several different channels, so an inspiring vision is created. Option Two this option is correct. Ensuring employee participation and ownership is a guiding principle of change management that helps to win trust and acceptance and creates ownership involving employees at every level of the organization.

The change process, from the conceptual stage to its implementation instills a sense of ownership among employees rather than a passive acceptance of the change. Option Three this option is correct. Addressing the people issues and facilitating change with the help of communication and encouragement can remove potential resistance to change. Change leaders should support desired behaviors by providing necessary coaching and counseling so that employees understand exactly what is expected of them. Option Four this option is correct. It is important to reward exemplary behaviors and celebrate short term twins in the change process.

As sometimes the change process is long and arduous. Periodic motivation and reward is an important change management principle that can help to keep those involved focused on the goal. Option Five this option is obviously correct. Assessing an organization’s culture before change occurs helps identify potential difficulties and conflicts before they emerge. This also helps incorporate the change into the organization’s culture. Option Six this option is incorrect.

You need to reward and motivate employees periodically during a long and arduous change process. By celebrating short term wins and rewarding exemplary behavior, you can help keep those involved in focused on the process. Match phases of the change management process with the activities that take place during that phase. Each phase is used more than once. Here are the options pre change phase, change phase and post change phase. And here we have the targets identify issues, define the strategy and prepare the team.

Develop a change management and communication plan communicate a vision and plan for change and secure commitment involve people and implement the plan monitor and evaluate the change process and sustain the change and make it part of the organization’s culture. And here we have the answer. Effective organizational change requires preparation. The organization must recognize the need for change and be capable of changing. Only then can the change be implemented effectively and smoothly. The pre change phase involves determining what needs to change, creating a vision for it, assessing change readiness, and defining your change management strategy. The pre change phase involves keeping the vision in mind to create a change management and communication plan.

Possible resistance to change is identified and the strategy to overcome the resistance is also worked out in this phase. The change. Phase of the change management process involves managing the change and includes communicating a vision and plan by describing the origin of the need and the risk of not implementing the change. Answer questions about the change honestly. And secure commitments for the change by describing the effects of the change and clarifying the goals and benefits to the organization and individual employees. Managing change in the change phase can take the form of mentoring and coaching employees and developing individual action plans to engage them.

It might also be necessary to provide training, but in all cases, managing the change schedule by identifying barriers and removing them quickly are important activities. The post change phase is all about reinforcing the change. This is done by monitoring and evaluating the change process, using reviews, collecting data, analyzes of employee feedback, and conducting a root cause analysis on the change process.

Sustaining the change is key in the post change phase and can be done by getting the support of leaders, adapting organizational structure, and implementing a system of accountability. It is important to with the change into the organization’s culture by making connections between the new way and success and providing encouragement and continuous communication. HR professionals support change management initiatives before, during and after the change. Which examples demonstrate the role that HR plays in supporting management during the change process?

Here you have the options participating in developing change management strategy, ensuring management communicates with employees regularly, ensuring leaders are supportive and visible during the change, advising senior management about employee expectations, ensuring the organizational culture doesn’t become overly flexible, and ensuring management receives employee feedback on the change process only after being approved by HR. And this is the answer for you to compare. Option one. This option is correct.

One aspect of HR professionals helping to develop organizational change management strategy is being involved with planning the new initiative. You can also help by developing initiatives or incentive plans that help motivate employees about the change. Option Two this option is correct HR professionals are involved with the human management side of change caused by an organization wide implementation.

Ensuring management regularly communicates with employees throughout the process is a way you can support the change process. Option Three this option is correct HR helps overcome resistance to change by ensuring visibility and supportiveness of organizational leadership for the change. Option Four this option is correct employees have intimate knowledge of the day to day task of the organization and their input into the change process can be invaluable. Promoting employee participation helps to create buy in for change, which is supporting management, but it also helps employees to understand and handle the change, which is supportive of employees. Option Five this option is incorrect. HR should help create an organizational culture that welcomes change, and it’s flexible enough to incorporate change. Option Six this option is incorrect.

Employees have an intimate knowledge of the day to day tasks of the organization, and their input can be very valuable. Ensuring management regularly communicates with employees and receives direct employee feedback on the change process is important. Now, which options show how HR supports employees during the change process? Here we have the options educating employees about the need for the change, anticipating resistance and finding ways to deal with it promoting employee participation in the change process, ensuring employees are not too involved in the process, and or understanding that most employees will know how to implement the change. This is the answer for you to compare. Option One this option is correct.

HR most important function before and during change is communication, which helps overcome resistance to change by communicating to employees the need for change and the organization’s vision for the change. Option Two this option is correct. You can support employees by accepting that some resistance is inevitable and thinking about ways to deal with resistance before it happens. One preventive measure is to help create an organizational culture that welcomes change and is flexible enough to incorporate change. Option Three this option is correct promoting employee participation helps to create buyin for change and helps employees understand and handle the change. Option for this option is incorrect. Promoting employee participation helps to create buyin for change and helps employees understand and handle the change and option Five this option is incorrect. Educating employees about the change and the various aspects of the change will help overcome resistance.

12. Establishing Relationships and Alliances (1)

In topic three Establishing Relationships and Alliances we will explore the value HR strategic, internal and external relationships brings to organizational decision making and the achievement of organizational goals and objectives. There are several stakeholders inside and outside analysis organization and these stakeholders directly and indirectly interact with the HR function and HR professionals on a regular basis. Some examples of internal stakeholders are executives, managers and employees from several functional areas.

These areas include operations, finance and accounting, It and sales and marketing. Establishing strategic relationships with key individuals in these functional areas will help HR professionals facilitate and influence organizational decision making, and it also allows AHR to support the unit while keeping an organization wide perspective. External stakeholders include customers, lenders, suppliers and in some cases, unions. In addition, other groups which are part of the larger business environment are critical to the organization in general and the HR function in particular. This include members of the community, government, regulators and competitors.

Building external alliances and relationships among these groups may assist HR relationships and professionals in achieving some of the organization’s strategic goals and objectives such as corporate social responsibility and community partnerships. So HR is linked externally to customers, stakeholders, unions and suppliers. HR has relationship internally with finance and accounting, It, sales and marketing, research and development, and operations and strategic leadership. Groups in the larger business environment that are critical to the HR function include the community, government, regulators and competitors.

13. Establishing Relationships and Alliances (2)

Aligning human resources with a strategic plan can’t be done without HR professionals developing working relationships with key individuals in groups inside and outside the organization. In addition to building rapport and trust internally, a good working relationship between HR and the other functionality US will provide you with a broader perspective on the company. That perspective helps you understand the needs of each functional area as they relate to the entire organization. That, in turn, will assist you in making recommendations that are strategic and appropriate. Internal relationships are built over time as the HR function builds credibility with the executive team as well as with the managers and employees throughout the company. Trust and credibility is established when you provide information and solutions to issues at all levels. And relationships between various functional units and the HR function are strongest when they are built on strategic, administrative, and operational foundations. So these are the HR and their internal functions. HR is made up of administrative, operational, and strategic foundations. HR is linked to customers, shareholders, unions, and suppliers.

HR has relationships with finance and accounting, It sales and marketing, research and development and operations, and strategic leadership. It is critical that HR be viewed as a key contributor to the development and implementation of the organization’s strategic plan. But that won’t happen unless and until we are viewed as a partner in the process. An equal occupying one of the much sought after seat at the Table remember my dining room table analogy? I used it in a different section. The first critical component is picking and understanding all the languages of business, all the languages used in your company. But that’s not all. You’ll also need to increase your knowledge of the organization in all of the functional areas. So facilitate crossfunctional cooperation with the goal of realizing the organization’s objective standard edit to identify internal needs and emerging issues in each of the functional units. Continually increase your HR’s department’s credibility both inside and outside the organization. Provide ongoing education to managers and employees and the values of HR and making powerful contribution to the strategic direction of the business.

14. Establishing Relationships and Alliances (3)

In addition to the high level relationships HR builds through its strategic, administrative and operational roles, there are other alliances to be built and nurtured. For example, assisting the sales and marketing teams in recruiting high performing employees is an important role of HR. Then, helping them motivate and retain good employees with competitive compensation and incentive programs will further expose your value. And also promoting crosscut functional knowledge and relationships will cement your position as a true partner in their success.

One of the basic areas where HR and It collaborate is in ensuring the company’s compliance with many employment and privacy related laws and regulations. HR often collaborates with It to distribute and implement company policies, processes and procedures. HR can provide expertise in assessing the impact of new technologies on employees, such as cloud computing, and we can also identify potential risk and compliance issues related to the lightning fast changes in technologies. In many cases, HR needs to quickly respond to new technologies with legally compliant policies which protect both the company and the employees from potential risk. As HR professionals, we often work closely with finance and accounting professionals. This is a vital relationship which benefits both groups.

However, in order for an Asian professional to provide expert advice and insight on activities that support the organization’s financial goals, he or she must have a broad perspective on the company’s financial position. Here, not only speaking the language of finance is important, but also reading and understanding the language is vital. The three key financial documents for HR to read and understand are the balance sheet, the income statement, and the statement of cash flow. With the information found in these reports, you can understand the financial and economic issues driving management decisions. As you know, knowledge is power. Having company financial knowledge will help you develop and drive strategic HR initiatives that will benefit the company and the employees. Another important area where HR professionals interact closely with finance and accounting is in preparing budgets. Workforce cost forecast, administrative cost analysis, and vendor and third party cost data are valuable tools provided by HR in the budgeting process.

15. Establishing Relationships and Alliances (4)

In many companies, the Operations function is a core activity responsible for most of the business-related cost and revenues. Apart from its general activities, HR supports the Operations Function by assisting with short-term labor needs, arranging for skills training required by new technology and processes, developing a reward system linking employee performance with quality and productivity requirements, consulting on potential union organizing activities and in unionized environments working with unions on Grievances and to introduce new work requirements. HR often collaborates with a research and development function on strategic issues. Research and development generally needs to recruit individuals with a higher level of education, experience, and specific skill sets. Often, significant investments are necessary to hire and retain these employees because of the potential business opportunities they may create.

HR works very closely with the managers in the Research and Development Department to identify the talent needed and to attract and hire the most suitable candidates. In addition, HR and Research and Development Function often collaborates with the Legal Department or outside legal counsel to protect intellectual property created by the Research and Development Department. Important HR activities in this area include developing and delivering awareness training, which explains employee rights and obligations with respect to the organization’s intellectual property. Building relationships outside the company can provide HR professionals and their companies with a number of benefits. These relationships provide a broad base of resources that can be key to identifying external opportunities and threats to the organization, as well as being a source of information. HR can turn to external contacts for information on needed service providers, to find employees with critical skills, and to build partnerships that add value to both parties.

Many companies believe it is important to give back to the communities where they are located, and they often do this in a way that’s not directly related to the business. Providing financial resources to community based programs, promoting employee volunteer activities, and providing business and management expertise are some of the ways companies give back. Corporate philanthropy also has a life cycle. Organizations may go through four phases in the process. First is reactive corporate philanthropy. Here are a number of small charitable donations, and those are made in response to requests by employees, managers, and organizations seeking the donations.

In other cases, senior management may recommend support of one or more specific causes. The second phase is strategic partnership. This involves providing strategic financial support in areas where long term business benefits are likely and where the external corporate image or reputation may be enhanced. Third is mainstream involvement. This focuses on integration with the community, with immediate operational business concerns and stakeholder support in mind, and finally, corporate accountability. A few companies reach this stage here. Open, comprehensive, long term engagement with our communities is part of the organization’s values and mission shop.

16. Establishing Relationships and Alliances (5)

Okay, before we move to the next topic, try answering some review questions. Relationships between various functional departments and the HR function are built on the three key roles it plays in the organization strategic, administrative, and operational. Match each role with activities HR undertakes to collaborate with internal partners. Each role is used more than once. Here are the options strategic, administrative, operational and here we have the target as its goal and action plan development. Involve employees to support strategy, deal with compliance issues, maintain employee records, maintain a productive work environment, and identify and recruit for workforce needs. And this is the answer. In its strategic role, the HR department teams up with all other functional areas to develop tactical goals and action plans. HR should be viewed as an expert in strategic human resource planning arena. HR collaborates strategically by involving employees to support corporate strategy and achieve the organization’s strategy goals. Trust and credibility is established when we provide information and solutions to organizational workforce problems at all levels.

In the administrative role, you deal with compliance issues related to government regulations. A broader perspective helps you represent the needs of the entire organization and make recommendations that are appropriate for the entire organization. Administrative collaboration includes keeping employee records as well as benefit records. HR is also responsible for making sure the employee records and information are maintained regularly and kept confidential. Operational collaboration involves looking after the employee relations and recruiting functions and maintaining a productive work environment. At the operational level, you help identify reliable and high quality service providers for organization workforce needs, such as recruiting agencies, insurers, outsourcing, vendors, and suppliers with expertise in areas of importance to the organization. Establishing strategic relationships with key individuals in each functional area of the organization can help you facilitate and influence organizational decision making.

the functional areas with activities that you can undertake to collaborate with them. Here are the options sales and Marketing It finance and accounting operations research and development and here we have the targets provide customer training to improve customer facing skills, assess opportunities and risks associated with a new technology use financial statements to understand issues that drive management decisions device reward systems for linking performance with quality initiatives. Design awareness programs with respect to organizational intellectual property this is the answer for you to compare. HR collaborates with sales and marketing to improve employees customer facing skills or help create training to help employees understand the products and services they sell and the needs of other functional areas. In addition, HR can help sales and marketing managers redesign their compensation and incentives programs.

Within the broad organizational policy framework, HR often isn’t in a good position to collaborate with It to assess opportunities and risk associated with a new technology or ensure compliance of employee privacy and the rights of communication. HR and It can also be deeply interconnected with the deployment of strategic information systems that support workforce planning, training and recordkeeping. HR collaborates with finance and accounting to become familiar with financial statements that drive decision making. HR also interacts with finance and accounting to prepare a budget for their own department and to help forecast workforce costs across all functions for general budgeting purposes, HR collaborates with operations to help the organization achieve strategic goals apart from its regular HR related role. HR provides support by helping meet its shortterm human resource requirements, providing training for skills required by new technologies and processes, and devising a reward system for linking workers performance with quality and productivity initiatives. Research and development and HR collaborate by identifying, attracting, and retaining suitable talent and developing training and mentoring for research and development employees. As well, HR and R and D collaborate with the legal department to design an awarded program for all employees around employee rights and obligations with respect to an organization’s intellectual property.

Corporate social responsibility is about how corporate citizens manage their businesses and their interrelationship with all the stakeholders in order to produce an overall positive impact on society. In which areas does HR build alliances with external stakeholders to support society at large? Here we have the options economic, legal, ethical, voluntary, and philanthropic, administrative and operational. And here you have the answer to compare. Option One this option is correct. HR builds alliances with external stakeholders to ensure the organization earns profits from owners, pays its employees and lenders, and pays corporate taxes. Option Two this option is correct. HR builds alliances with external stakeholders and ensure the organization complies with laws and regulations. Option Three this option is correct. HR builds alliances with external stakeholders by ensuring their organization is not just driven by profit that does what is right, just, and fair.

Option Four this option is correct. HR builds alliances with external stakeholders by promoting human welfare and goodwill at large for everyone in this society and community, by contributing to the community, and by contributing to everyone’s quality of life. Option Five this option is incorrect. In the administrative role, HR deals with organizations internal issues relating to compliance, employee records, and benefit records. In option Six, this option is incorrect. Building operational analysis is a role that HR plays to support internal relationships. Organizations, often represented by HR professionals, provide support for causes that align with organizations own values and also benefit these communities. What are the phases that organizations may go through when partnering with the community? Here you have the options reactive corporate philanthropy, strategic partnership, mainstream involvement, corporate accountability, economic responsibility, and or operational affiliation. And this is the answer for you to compare. Option One this option is correct.

The reactive corporate philanthropy phase is characterized as making a variety of small charitable donations to a popular, social or governmental initiative and illegalist involvement with the community. Option Two this option is correct. The strategic partnership phase involves enhancing the corporation’s reputation by providing strategic financial support in selective sectors that result in long term business benefits. This is not extreme involvement in the community. Option Three this option is correct. In the mainstream involvement phase, the organization is better integrated with the community. In view of immediate operational business concerns. This phase is concerned with winning support of internal and external stakeholders, with involvement broadened to include cash donations as well as Inkind resources. Option for this option is also correct.

The corporate accountability phase is an open, comprehensive and long term engagement with our communities as part of the organization’s values and mission. Though rare, it is the ideal coexistence of communities and corporations. Option Five this option is incorrect. Economic responsibility is an area in which HR builds alliances with external stakeholders to support the community, not to face companies experience when partnering with the community and option Six this option is incorrect. HR builds internal relationships by playing a role in operations, but this is not a phase organizations go through when partnering with a community.

17. Participating in Enterprise Risk Management (1)

In topic four participating in Enterprise Risk Management. We will wrap up the course with a look at how HR can contribute to enterprise risk management through well-developed policies and procedures. Risk management is the identification, evaluation, and control of risk that may negatively affect the company, and it’s the potential negative impact that makes it important to include risk management in the strategic planning process. From an HR perspective, risk is a complex enterprise wide concern that has potential ramifications in all areas that HR touches business management and strategy, workforce planning and employment, human resource development, compensation and benefits, and employee and labor relations. HR is involved in risk management because business risk involves people.

While there are several ways HR can be involved in the risk management responsibilities, the key point is that risk management should be top of mind and handled as part of the strategic planning process. This will ensure the company’s best chance at reaching its business and strategic goals. Companies face several types of risks, both internal and external, on a daily basis. Potential external risk factors include financial risks, such as fluctuations in interest rates and other economic factors strategic risks, like competition and changes related to customers and the industry.

Hazard risks include contract issues, supplier problems, and natural and environmental issues and operational risks, such as lawsuits and legal and regulatory changes. Potential internal risk factors include financial risk like monetary losses, internal fraud, and the lack of liquidity and poor cash flow. Strategic risks include merger and acquisition, integration and loss of patents and intellectual property. Internal hazard risk are things like employee actions. And finally, internal operational risk are things like it system failures, viruses, base Alofts, supply chain disruptions, and sabotage.

18. Participating in Enterprise Risk Management (2)

Enterprise risk management broadly refers to an organizational process, often initiated and led by senior management, that guides the strategic planning process. Enterprise risk management is designed to identify potential risks, manage that risk, and do it with a predefined acceptable limits. The key characteristics of enterprise risk management can be summarized as an ongoing organization wide process. It’s one that’s designed to identify potential risk. It’s an integral part of strategic planning, and it’s applied in the strategy formulation phase. It’s initiated and led by the organization’s. Top management applies across the enterprise at every level and unit, and put into practice by employees at every level of the organization. And finally, it supports the organization in achieving its objectives through risk avoidance, risk reduction, risk transfer, and risk acceptance.

An enterprise risk management framework combines systems, policies and processes for the proactive assessment and management of organizational risk. The most important aspect for building this framework is establishing organizational risk management priorities and securing senior management support. Developing an enterprise risk management framework typically involves assessing the organization’s risk profile, developing risk management systems and implementing risk management programs, developing control and monitoring systems, and regularly evaluating and modifying risk management plans. So building Enterprise Risk Management Framework this is a cycle that that includes assessing organization’s risk profile, developing risk management system, implementing risk management programs, developing monitor and control systems, and evaluating and modifying risk management plans.

19. Participating in Enterprise Risk Management (3)

There is an important distinction that you should keep in mind. The Enterprise Risk Management Framework is an ongoing, strategic, organization wide process, and it includes the appropriate policy guidelines. A risk management process focuses on specific risk or risk categories and involves five steps. First, the development of the organization’s strategic objectives next, risk assessment, which includes risk analysis and risk evaluation third, risk reporting and communication fourth, risk response decisions and fifth, monitoring and reviewing. An HR professional’s role is to participate in risk management by assessing risk and creating HR policies to prevent or mitigate risk and ensure business continuity and growth.

Organization risk assessment involves two sub processes risk analysis and risk evaluation. Critical risks are analyzed by identifying those risks, describing and presenting them in a structured format, and then estimating their potential impact. After all the critical risks are analyzed, it’s necessary to evaluate the estimated risk against predetermined risk criteria. This may include cost and benefits, legal requirements, socioeconomic and environmental factors, and the concerns of stakeholders.

Risk evaluation is used to make decisions about the significance of the risk and how to respond to specific risk. Once organizational risk has been analyzed and evaluated, then it should be reported to internal and external stakeholders. Different levels within the organization have different risk information needs. For example, the board and senior management may need information on the most significant risk facing the organization and their possible effects.

Business levels and department managers should be aware of risks which fall into the area of responsibility and the possible impact this may have on other areas and the consequences other areas may face. External stakeholders should know the processes used to identify risk and how the response mechanism works. Also, the control systems that are in place to manage significant risk and the monitoring and review systems in place. Decisions concerning how to respond to important risk will improve. Will involve selecting and implementing the most appropriate measures and restriction includes strategies such as risk avoidance, risk reduction, risk transfer, and risk acceptance.

20. Participating in Enterprise Risk Management (3)

There is an important distinction that you should keep in mind. The Enterprise Risk Management Framework is an ongoing strategic organizationwide process, and it includes the appropriate policy guidelines. A risk management process focuses on specific risk or risk categories and involves five steps. First, the development of the organization’s strategic objectives next, risk assessment, which includes risk analyzes and risk evaluation third, risk reporting and communication fourth, risk response decisions and fifth, monitoring and reviewing. An HR professional’s role is to participate in risk management by assessing risk and creating HR policies to prevent or mitigate risk and ensure business continuity and growth.

Organization risk assessment involves two sub processes risk analysis and risk evaluation. Critical risks are analyzed by identifying those risks, describing and presenting them in a structured format, and then estimating their potential impact. After all the critical risks are analyzed, it’s necessary to evaluate the estimated risk against predetermined risk criteria. This may include cost and benefits, legal requirements, socioeconomic and environmental factors, and the concerns of stakeholders.

Risk evaluation is used to make decisions about the significance of the risk and how to respond to specific risk. Once organizational risk has been analyzed and evaluated, then it should be reported to internal and external stakeholders. Different levels within the organization have different risk information needs. For example, the board and senior management may need information on the most significant risk facing the organization and their possible effects.

Business levels and department managers should be aware of risks which fall into the area of responsibility and the possible impact this may have on other areas and the consequences other areas may face. External stakeholders should know the processes used to identify risk and how the response mechanism works. Also, the control systems that are in place to manage significant risk and the monitoring and review systems in place. Decisions concerning how to respond to important risk will improve. Will involve selecting and implementing the most appropriate measures and restrictment includes strategies. Strategies such as risk avoidance, risk reduction, risk transfer, and risk acceptance.

21. Participating in Enterprise Risk Management (4)

So here’s the next set of review questions. It is important for you to be involved in risk management activities. Match each internal risk category to its example. Here we have the options financial, strategic, hazard, and operational. And here we have the targets. Cash flow is limited when a large supply order is placed. The company incurs unanticipated cost in integrating the company. It acquired a 40 electrical circuit cost file at the company’s manufacturing plant and virus has damaged a company’s strategic information system. This is the answer you can compare with it. Limited cash flow is an example of an internal financial risk. Other internal financial risk include financial losses, internal fraud and insolvency integration challenges and cost of mergers and acquisitions are examples of internal strategic risk. Other internal strategic risks include loss of patents and intellectual property.

Any source of potential damage, harm or adverse health effects for employees is a hazard risk. Other internal hazards might involve property, products and services. Computer virus damage is an example of an internal operational risk. Other internal operational risk might involve system failures, data loss, supply chains, espionage, and sabotage. HR professionals are usually involved in various aspects of risk management. Match each external risk category to each example. Here you have the options financial, strategic, hazard, and operational. And here we have the targets. Higher debt repayment due to an increase in interest rates. Decreasing profit margins due to matching the competition’s retail price, unexpected cleanup costs for farmers due to a chemical spill in the area and stricter emissions standards. Increased production cost for an automaker.

And this is the answer for you to compare. A fluctuation in interest rate is an example of an external financial risk. Other external financial risk might involve foreign exchange rate or other economic factors. Profit losses due to competition is an example of an external strategic risk. Other external strategic risk include customerrelated changes and industry changes. Having a negative effect on the environment is an example of an external hazard. Other external hazards might involve contracts, suppliers, or natural events. A regulation change is an example of an external operational risk. Other external operational risks include policy changes, lawsuits, and other legal requirements. A risk management process focuses on specific risk or risk categories.

Which steps are involved? Here you have the options reviewing and analyzing the organization’s goals. Analyzing and evaluating risk informing internal and external stakeholders of risk taking action against risk as needed ensuring controls and adjustments occur when needed. Responding to each risk after it has been analyzed and auditing risk management policies that have become ineffective and here we have the answer to compare. Option One this is the correct option. The risk management process begins with reviewing and analyzing an organization’s strategic goals and objectives. The organization’s goals and objectives set the broad guidelines for identifying and responding to risks that are most critical to the organization. Option Two this is the correct option.

Risk Assessment the second step involves analyzing risk by identifying, describing, and presenting them in a structured format. Risk assessment also involves deciding which risks are significant by evaluating estimated risk against predetermined risk criteria that might include cost and benefits, environmental factors, or concerns of stakeholders. Option Three this is a correct Option risk reporting and communication. The third step involves reporting risk to internal stakeholders and stating how they affect top and departmental responsibilities. Risk are also reported to external stakeholders to explain the process used to identify them and how they will be managed. Option Four this is a correct option Deciding how to respond to risk is the fourth step. The main four strategies for risk treatment or risk avoidance risk reduction, risk transfer, and risk acceptance.

Option Five this is the correct option an effective risk management process requires good monitoring and review systems to ensure controls and adjustments in the process occur when needed. A regular audit of risk management policy and compliance standards should be carried out and other reports reviewed to identify opportunities for improvement. Option Six this is an incorrect Option some identify risks won’t have a significant impact on the organization. The decision to accept the risk without taking any measures to prevent loss might be the best one.

On the other hand, other identify risk might require treatment or avoidance and option Seven it’s an incorrect option. Don’t wait until risk management policies have become ineffective before you audit them. Regular audits of risk management policies and compliance standards should be carried out, and audit reports should be reviewed to identify opportunities for improvement. The dynamic environment in which businesses operate call for periodically analyzing and appropriately adjusting risk, risk management processes and policies.

22. Business Management and Strategy – HR Functions and Roles

Business management and strategy AGR functions. Congratulations. You just finished this course. This course examines many of the important functions and roles that HR professionals play in an organization. Key management functions include planning, organizing, directing, and controlling various strategies and operational activities. HR professionals also play an important role in developing and executing strategies related to organizational change management. Establishing and nourishing strategic relationships inside and outside the organization helps solidify our reputation as a subject matter expert and consensus builder. And finally, our participation in enterprise risk management helps ensure organizational risk are identified, analyzed, handled effectively, and monitored on a regular basis. So in topic one, key management functions, the important management functions of planning, organizing, directing and controlling were explained.

Change is inevitable. In topic II, Managing Organizational Change, the role HR plays in developing, influencing, and executing organizational change management strategy was discussed. Internal and external stakeholders are critical to the HR function. In topic three, Establishing Relationships and Alliances, we explore the value HR strategic, internal and external relationships bring to organizational decision making and the achievement of organizational goals and objectives.

Risk is a complex, enterprise wide concern that has potential ramifications in all areas that HR touches. In topic four, participating in Enterprise Risk Management, we wrap up the course with a look at how HR can contribute to enterprise risk management to well-developed, policies and procedures. That’s it. Thank you for watching and see you in the next course.

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