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BUSINESS ACUMEN, are the KSAOs needed to understand the organization’s…

- - - - INCREMENTAL
        
        known as line-item budgeting
        
        Based on prior budget with certain % of increase/decrease
        :green_cross: Less time-consuming than other methods
        :red_cross:does not recognize changes in business circumstances or practices that could affect spending.
      - ZERO-based
        
        Start at 0, priority ranking
        
        5 funds in order base on raking
        :red_cross: can be time-intensive at first but becomes more efficient with experience
        :check: Tends to reduce wasteful spending practices that can go unchallenged in traditional budgets.
      - ACTIVITY-based
        
        Fund based on strategic significance of the activities
        :green_cross: gives leaders more control over spending decisions.
      - FORMULA-based
        
        Different percentage for each unit
    - - OPERATIONAL COST = HR essential service e.g. TA, L&D
        OVERHEAD COST = not directly contribute to HR e.g. maintenance, utility
        ONE-TIME PROJECT COST = support HR strategic & goals e.g. salary review
      - The first thing HR leaders must do in the process of allocating resources to strategic activities is to compare previous/current activities and budget allocations with what will be needed to support the proposed organizational strategy
  - - - Executive Summary (condition)
        
        The purpose of the project. (What is the problem...)
        
        The conditions or change... (Why need to do? Buz opportunities)
      - Recommended Solution (objectives)
        
        Define ideal solution = initiative (How can we address the problem? ) Options available to implement solution
        
        Define desirable outcomes of an ideal/chosen solutions
      - Risks & Opportunities
        
        What are risks associated with each option?
        
        What risk if not doing?
        
        Opportunities = outcomes which require action
      - Estimated costs & Time frame
        
        Define the budget & timeline
        
        Propose Project charter (Project members, objectives, key milestones and forecast budget)
        
        Incl. all foreseeable elements (labor, equipment, fees, travel, and so on) + a reserve phòng hờ for the unforeseeable based on the project’s risk
  - - - ASSET= what an organization owns. (Account receivable)
        LIABILITIES *nợ phải trả= what an organization owes (Accounts payable)
        EQUITY vốn chủ sở hữu*= what a company owes to either its owner(s) or its shareholders.
      - Every financial transaction is an exchange => reflect assets,
        liabilities, or equity
        
        Only transactions measurable in money are recorded.
    - - NEGATIVE CASHFLOW = TOO LOW SALES and/or TOO HIGH PRODUCTION COST
        
        suggest that the organization is not continuing to invest in itself to develop new skills and products.
        :check: for HR
        poor cash flow => fewer resources will be available for HR programs, but there may also be opportunities for HR to use its expertise to improve the cash flow situation, which will make the company more attractive to investors => HR might, for example, work with operations to introduce a leaner manufacturing process (which will decrease inventory) or with sales and marketing to create an incentive system (which will increase net income).
      - POSITIVE CASHFLOW = ability to repay debt and meet expenses
  - - - CURRENT RATIO = Current asset/ current liabilities
        
        Liquidity ratio that indicates level of working capital.
        
        Creditors prefer a higher current ratio.
      - DEBT TO ACCESS RATIO = Total liabilities/total assets
        
        Leverage ratio reflecting the amount of exposure to risk from debt that an organization has assumed.
        
        >1 means organization has more debt than assets.
      - DEBT TO EQUITY RATIO= Total Debt/ Shareholder’s equity
        
        Leverage ratio reflecting how an organization is funding its growth. This varies by industry and strategy type.
      - ACCOUNT RECEIABLE TURNOVER = Net credit sales/ Average account receivable
        
        Activity ratio that measures the efficiency of debt collection.
        
        A higher ratio is preferable, but a ratio that is too high could indicate excessively tight credit policies that could hurt sales.
      - GROSS MARGIN = (Total sales – COGS)/ Total sales
        
        Profitability ratio showing the percentage of total sales revenue after incurring the direct costs of producing goods and services sold
        
        The higher the percentage, the more the company retains on each dollar of sales to service its other costs and obligations.
      - Earnings before interest, taxes, depreciation khấu hao ts hữu hình, and amortization khấu hao ts vô hình (EBITDA) margin = EBITD/Total sales
        
        Profitability ratio often used as measure of management performance.
      - PROFIT MARGIN = [Total sales- total costs]/ Total sales
        
        Profitability after all expenses have been deducted, expressed as a percentage of revenue (sales).
      - Return on investment (ROI) = [Gain from investment- Cost of investment]/ Cost of investment
        
        Profitability ratio for a specific investment, such as a capital expense project. It is usually used to compare the economic costs and gains of options.
        
        >1 means a good investment generally
        
        Analyses showing negative ROIs may then proceed to consider factors whose economic impact is more difficult to measure (e.g., improved employee motivation).
      - Earnings per share (EPS) = Net income/ Number of outstanding shares
        
        Profitability ratio used by equity holders as a standard expression of earnings.
      - Price to earnings (P/E) = Stock price per share/ Earnings per share
        
        Market value ratio that indicates market confidence in the organization’s ability to maintain or increase earnings.
  - - - IDENTIFY LEAD
        Through campaigns, public relations, and other promotional activities, customers are exposed to the organization and the products or services it offers. This stage is sometimes referred to as prospecting thăm dò.
      - GATHER INFORMATION
        Investigate prospective customers to ensure that they are viable khả thi leads. In other words, can you meet their needs, can they afford it, are they a legitimate organization?
      - CREATE PROPOSAL
        After it is determined that a lead is legitimate hợp pháp, a proposal is drawn up detailing why and how the product or service meets their needs or requirements
      - NEGOTIATE
        After receipt of the proposal, a prospective buyer might come back with a counterproposal đề xuất đối ứng. Sometimes, they may ask for a demonstration to ensure that the product or service does indeed meet their needs. Any counteroffer *hoàn giá should be examined closely to ensure that *it makes financial sense.
      - CLOSE SALE
        After the terms have been agreed upon, final details are ironed out được giải quyết, and questions are answered. A contract is sent out and signed by both parties, and payment is received.
      - MONITOR
        After a sale is completed, the customer should be monitored regularly in order to provide high levels of service. Depending on how the account is performing, opportunities to cross- or up-sell other products and services might arise
- - - - 1. INTRODUCTION
        
        Revenue is low (Little market awareness/market’s resistance to change)
        
        Entrants (new industries, organizations, or products) must create an identity with customers and develop a value proposition.
      - 2. GROWTH
        
        Revenue begins to grow
        
        The focus shifts to creating Increase efficiency without stifling innovation
      - 3. MATURITY hết kỳ hạn
        
        Competitors and growth only through introduction of new products or customer groups or through acquisitions
        
        Profit margins become narrower and efficiency becomes more important
        
        This means greater formalization and perhaps bureaucracy
      - 4. RENEWAL/NO GROWTH/DECLINE: Demand decrease:
        
        RENEW: change their offerings  if success  revenue rise. Organization must return to their innovative roots
        
        NO GROWTH: Take no action & accept continued low revenue. Few resources to take advantage of opportunities
        
        DECLINE: Take no action & experience a decline in revenue that will make it impossible to compete or operate
    - - INTRODUCTION characteristic
        
        Vision, innovation, and energy are critical.
        
        There is little structure and no formal policies.
        
        There may not be a dedicated HR function; it may be outsourced to a consultant or performed by a top manager.
        :check: HR strategy
        
        TA, finding the resources needed to build a foundation for the enterprise
        
        Helping to define and create a culture in keeping with the founders’ values.
        
        Controlling risks associated with HR (for example, compliance with laws, stress management).
      - GROWTH characteristic
        
        Need for greater control emerges
        
        This often results in more formalization and complex reporting and decision-making structures. Top management plans; lower-level management implements
        
        There can be a loss of connection with the organization’s strategy
        :check: HR Strategy
        
        Building and retaining a productive workforce to meet a high level of demand.
        
        Establishing stable leadership through succession planning.
        - Implementing policies.
        
        Communicating and reinforcing organizational culture in policies and practices.
        
        Improving channels of communication so that strategy can be understood and aligned at all levels and in all areas.
        
        Making sure that formalization does not make the organization less agile and innovative.
        
        Consulting to other parts of the organization to solve problems that affect productivity
        
        Modeling awareness of external influences. HR can be a champion of environmental scanning.
      - MATURITY characteristic
        
        Keen *sâu sắc awareness of markets and customers *make the difference
        
        Managers must be strategically disciplined and maintain focus
        
        There are competing demands for innovation and efficiency.
        
        :check: HR strategy
        
        Tactical buildup of talent. The right talent must be acquired and/or built in-house.
        
        Tactical increase in complexity of structure and policies. Changes must weigh cân nhắc improvements in efficiency against impact on culture
        
        Helping leaders redefine their roles and share leadership with others
        
        Formalization of job descriptions
        
        Managing changes caused by the organization’s growth and increased formalization
      - RENEWAL characteristic
        
        The organization attempts to reconnect with or find new customers or missions.
        
        If the organization has become slowed by its size and held back by complex structures and too many policies, it will need to restructure.
        
        Vision and innovation, strong leadership, motivation, and communication are vital.
        :check: HR strategy
        
        Reductions in workforce to right-size the organization as it rebuilds.
        
        A change in leadership and workforce requirements.
        
        A streamlining *hợp lý hóa of *structures and policies.
        
        Added responsibilities to JD and remaining staff
      - NO GROWTH characteristic
        
        Revenue and workforce remain static or decline.
        
        Fewer opportunities for employee advancement arise
        
        Compensation is static [unchanged]
        :check: HR strategy
        
        Maintaining engaged workforce with fewer resources.
        
        Dealing with increased turnover rate.
        
        Delivering HR services with shrinking budget.
      - DECLINE characteristic
        
        The organization shrinks in size and assets.
        
        In-fighting increases.
        
        There may be a swing back to more autocratic chuyên quyền control by leaders.
        :check: HR strategy
        
        Reducing the workforce size.
        
        Helping the organization’s members manage constant stress and workplace changes necessary to survive.
        
        Attracting necessary talent. Reduced assets and prospects demand greater creativity in talent acquisition.
  - - - POLITICAL Governmental and other political forces that can exert influence on the economy or a specific industry
      - ECONOMIC Market and other economic conditions
      - SOCIAL
        Events and trends in society that can affect the present and future availability of talent, compliance requirements, and employee needs
      - TECHNOLOGICAL
        Changes in technological capabilities and availability that can affect an organization’s ability to produce and provide goods and services
      - LEGAL
        Laws and regulations that can affect an organization’s operations
      - ENVIRONMENTAL
        Geographic and climate changes
    - - Regularly reading the business press to monitor the latest business philosophies and trends
      - Staying current with the latest academic HR research
      - Analyzing the organization’s performance. Review the organization’s financial reports and strategic goals and understand the stories they are telling
      - Monitoring the performance of other organizations, including competitors and major employers in your communities of operation which can affect employer branding, compensation, engagement, and diversity strategies.
      - Becoming regular users of third-party information from government agencies e.g., labor and trade departments), international bodies, associations…
      - Scanning annual reports from businesses or groups with comparable markets and workforces. Annual reports can provide insight into the issues other organizations are wrestling with and the solutions they have tried.
    - - Keep track of current events & trends that affect the workplace (belonging to professional network
      - Being an advocate for workplace issues, focus on issues that affect the business decisions of major employers & on wage and benefit issues.
      - Help shape developing policies on issues
- - - - TRANSLATING the vision
        BS must include accountability & measurable results => tailor its efforts to best serve achieving these results.
      - COMUNICATING and LINKING
        clear idea of overall objective => departments’ objectives aligned with long- term strategies (HR: talent acquisition will serve the overall strategy)
      - BUSINESS PLANNING
        Organizational goals => departments own plans (HR ensure resources allocation to workforce management.
      - FEEDBACK and LEARNING
        provide with more opportunities to learn from ongoing performance (=> HR adjust its strategies based on real-time feedback & modify activities)
  - - - TREND ANALYSIS (BACKWARD): Analyze historical data to extrapolate ngoại suy future labor demands
        
        DASHBOARD (CURRENT): Measure performance in key areas
        
        PREDICTIVE ANALYTICS (FORWARD)
        
        use historical & current data  future’s sense
        
        Apply formular & algorithms to data warehouses to predict outcomes
      - offer some valuable applications to HR professionals
        :check: Identifying objective performance and engagement metrics, used to identify top-performing employees, and culture fit
        :check: Facilitating retention and succession planning, by tracking success indicators and factors that might point to potential flight risks (The latter should be approached cautiously.)
        :check: Enhancing TA processes by identifying the best hiring sources and potential future high-performing employees and helping to determine the effectiveness of diversification efforts
        :check: Improving the chances of fraud gian lận detection through pattern recognition
    - - “what if” planning can help organizations mitigate giảm thiểu the severity mức độ nghiêm trọng of potential risks in the future :check: HR can take information gathered from past experiences and events and use them to devise plans to confront đối chiếu possible challenges in the future
      - QUESTION:
        :question: Did the organization have appropriate employee supports in place (technological, health)?
        :question: What preparations are in place to make adjustments to remote or hybrid work conditions?
        :question: Was the organization able to locate and repatriate trở về tổ quốc employees who were overseas?
        :question: After the crisis ended, was the organization able to meet any new staffing needs?