Posted: February 26th, 2023

HRMN 495-Week 1:Strategic HR

Please see the attached documents and let me know if any questions arise. The resource links are added to each class resource. 

Learning Topic

The Role of HR in the

The role of HR in the organization is to develop strategy for human

resources that aligns with the larger business strategy, to contribute to

the creation of the business strategy, and to help other business functions

in their strategic roles. There are many internal and external factors that

influence the role of HR, such as globalization, changes in the workforce

and in the workplace, increased accountability, and increased focus on


Within an organization, HR may fall under Finance or Management, or it

may be a department of its own.

Let’s take a look at some of the other functions in an organization:

In general, executive management is responsible for the overall

organizational performance.

Finance and accounting departments plan for, account for, document, and

distribute financial resources according to the organizational strategy.

Marketing helps to bring in information about customers, sales, and

competitors, as well as to guide the organization’s position in the market.

Management, or operations, is responsible for logistics, planning and

distributing resources.

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Resource Link:

IT makes business intelligence available and manages systems for

effectiveness and efficiency.

HR is a cross‐functional role that serves as a bridge between the different

functions, helps align human capital with business strategies, and

manages the life cycle of employees.

• Functional Areas of Business (/content/umuc/tus



© 2023 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the

validity or integrity of information located at external sites.


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Functional Areas of Business

What you’ll learn to do: Identify the primary
functional areas within a business and describe
their contribution to the organization

The decisions about how best to use the factors of production to provide

the goods or services of the business require a team of people working in

a variety of jobs. As businesses grow larger and their products and

services become more complex, the number of functional areas within a

business grows. Each functional area makes specific and valuable

contributions to the organization as a whole. In this section we will

explore some of the most common functional areas in a business and how

each contributes to the overall success

of the business.

Learning Outcomes

• Identify the primary functional areas within a business

• Identify key people and explain the activities within each

functional area


Learning Resource

Functional Areas of Business

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Resource Link:

Just as different functions in the human body are performed and

regulated by different organs, different functions within a business are

performed and controlled by different parts of the business. One of the

reasons for separating business operations into functional areas is to

allow each to operate within its area of expertise, thus building efficiency

and effectiveness across the business as a whole. The key functional

areas of a business are the following:







The primary role of managers in business is to supervise other people’s

performance. Most management activities fall into the following


• Planning: Managers plan by setting long‐term goals for the business,

as well short‐term strategies needed to execute against those goals.

• Organizing: Managers are responsible for organizing the


of a business in the most efficient way, enabling the business to use

its resources effectively.

• Controlling: A large percentage of a manager’s time is spent

controlling the activities within the business to ensure that it’s on

track to achieve its goals. When people or processes stray from the

path, managers are often the first ones to notice and take corrective


• Leading: Managers serve as leaders for the organization, in practical

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as well as symbolic ways. The manager may lead work teams or

groups through a new process or the development of a new product.

The manager may also be seen as the leader of the organization

when it interacts with the community, customers, and suppliers.


Operations is where inputs (factors of production) are converted to

outputs (goods and services). Operations is like the heart of a business,

pumping out goods and services in a quantity and of a quality that meets

the needs of the customers. The operations manager is responsible for

overseeing the day‐to‐day business operations, which can encompass

everything from ordering raw materials to scheduling workers to produce

tangible goods.


Marketing consists of all that a company does to identify customers’

needs and design products and services that meet those needs. The

marketing function also includes promoting goods and services,

determining how the goods and services will be delivered, and developing

a pricing strategy to capture market share while remaining competitive. In

today’s technology‐driven business environment, marketing is also

responsible for building and overseeing a company’s Internet presence

(e.g., the company website, blogs, social media campaigns, etc.). Today,

social media marketing is one of the fastest growing sectors within the

marketing function.


Accountants provide managers with information needed to make

decisions about the allocation of company resources. This area is

ultimately responsible for accurately representing the financial

transactions of a business to internal and external parties, government

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agencies, and owners/investors. Financial accountants are primarily

responsible for the preparation of financial statements to help entities

both inside and outside the organization assess the financial strength of

the company. Managerial accountants provide information regarding

costs, budgets, asset allocation, and performance appraisal for internal

use by management for the purpose of decision‐making.


Although related to accounting, the finance function involves planning

for, obtaining, and managing a company’s funds. Finance managers plan

for both short‐ and long‐term financial capital needs and analyze the

impact that borrowing will have on the financial well‐being of the

business. A company’s finance department answers questions about how

funds should be raised (loans vs. stocks), the long‐term cost of borrowing

funds, and the implications of financing decisions for the long‐term health

of the business.

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Answer the following questions to see how well you

understand the topics covered in this chapter. This short

quiz does not count toward your grade in the class, and you

can retake it as many times as you wish.

Use this quiz to decide whether to study the chapter

further or move on.

Choose the BEST answer.

Question 1

What business function is responsible for making sure that

organizational strategies and goals are aligned with staffing





Question 2

InfoTech is a computer application firm based in Silicon

Valley and has been responsible for introducing some of

the highest rated applications available for personal

productivity. Two brothers originally founded the company,

but they quickly realized they needed to convert the

Check Your Knowledge


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business into a corporation and establish functional areas

within the company to handle various aspects of

operations. The company is now considering expanding

operations by building a production facility in another

country. The Board of Directors has approved this move,

and now it will become the responsibility of which

functional area to secure the necessary funding for the





Question 3

What function is responsible for ensuring that products and

services, which are produced or provided, meet high quality





Licenses and Attributions



Functional Areas of Business…

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Introduction to Functional Areas (

/wmopen‐introbusiness/chapter/functional‐areas/) from Introduction

to Business by Linda Williams and Lumen Learning is available under

a Creative Commons Attribution 4.0 International

( license. UMGC has

modified this work and it is available under the original license.

Functional Areas of Business (


from Introduction to Business by Linda Williams and Lumen Learning is

available under a Creative Commons Attribution 4.0 International

( license. UMGC has

modified this work and it is available under the original license.

© 2023 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the

validity or integrity of information located at external sites.

Functional Areas of Business…

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Learning Topic

SHRM Body of Competency and

SHRM Body of Competency and Knowledge

The SHRM Body of Competency and Knowledge (SHRM BoCK) is based

on the SHRM Competency Model. This competency model identifies the

knowledge areas, skills, and abilities that are essential for HR

professionals to succeed in the field. Beginning in 2011, this list of skills

and competencies was developed through research and consultation with

a broad range of HR professionals (Society for Human Resource

Management, n.d.). In addition to listing key behavioral competencies and

knowledge areas, the SHRM BoCK provides information about the

structure and content of SHRM’s certification examinations, including the

SHRM Certified Professional (SHRM‐CP) exam.

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The SHRM BoCK has two main sections: business competencies and HR

functional areas of expertise. This combination of active behaviors and

conceptual knowledge is key to this competency model because

successful HR practitioners go beyond theory to skilled application.

Through SHRM BoCK’s core areas, HR professionals can facilitate a

strategic mindset, influence individual performance, and help achieve

successful business outcomes (Society for Human Resource Management,


As you prepare for the SHRM‐CP exam, you may find it valuable to use

this SHRM‐CP Exam Study Guide (/content/dam/course‐content


CP%20Exam%20Study%20Guide x) to make note of what you

already know and what you need to revisit in each of the competency

areas. As you review the study material and conduct your own research,

you can use the final column to capture notes of what you learn along the

way. (/content/dam/course‐content/tus/hrmn/hrmn‐495/document

/SHRM‐CP%20Exam%20Study%20Guide x)

The following information and resources provide additional details about

the SHRM BoCK, including how to use the framework as a study resource

for the SHRM‐CP exam:

SHRM BoCK Behavioral Competencies

SHRM Body of Competency and Knowledge…

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The first cluster, or grouping of behavioral

competencies, includes two sub‐

competencies: (1) leadership and navigation

and (2) ethical practice. This cluster

emphasizes the HR professional’s ability to

act as a leader within an organization and

influence the strategic direction and culture

of the organization. A successful HR

professional balances a keen strategic

mindset with a commitment to promoting

high ethical standards.


The second cluster includes three

competencies specific to interpersonal

dynamics: relationship management,

communication, and global and cultural

effectiveness. This grouping of

competencies focuses on the HR

professional’s ability to build strong

relationships among members of the

organization, navigate conflict,

communicate with clarity and empathy, and

promote diversity and inclusion in the


SHRM Body of Competency and Knowledge…

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The final cluster of behavioral competencies

includes three sub‐competencies: business

acumen, consultation, and critical

evaluation. These competencies require HR

professionals to understand business and

operational best practices, work

collaboratively within the organization, use

data to identify opportunities for growth,

facilitate change management, and garner

support from key stakeholders.

SHRM BoCK Knowledge Competencies


The first area of HR knowledge, People,

includes five functional areas: HR strategic

planning, talent acquisition, employee

engagement and retention, learning and

development, and total rewards. These

areas are united in their emphasis on

identifying, retaining, and engaging high‐

quality employees. HR professionals play a

central role in defining the strategy that

helps businesses achieve these goals. As the

champion for the employees, it is essential

that an HR professional has deep

knowledge of the activities and best

practices associated with each of these

functional areas.

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The second domain within the HR

knowledge competencies is Organization.

The five functional areas in this domain

focus on the structure and procedures

deployed by HR professionals to help

support the functioning of the business.

They are the structure of the HR function,

organizational effectiveness and

development, workforce management,

employee and labor relations, and

technology management.


The final area within the knowledge

competencies is Workplace. There are five

functional areas in this domain: HR in the

global context, diversity and inclusion, risk

management, corporate social responsibility

(CSR), and US employment law and

regulations. Successful HR professionals

must have a strong knowledge of the laws,

regulations, ethical principles, and cultural

dynamics that play a role in business and

employee relations. This knowledge,

combined with the behavioral

competencies, equips HR professionals to

be champions for justice, equality, and

inclusivity within the workforce.

SHRM Body of Competency and Knowledge…

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Society for Human Resource Management. (n.d.). The SHRM Body of

Competency and Knowledge.


• SHRM BoCK Model (

/certification/Documents/SHRM‐BoCK‐FINAL )

• SHRM HR Competency Model



• 2021 SHRM Certification Handbook












© 2023 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the

validity or integrity of information located at external sites.


SHRM Body of Competency and Knowledge…

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Common Organizational Structures

Organizations can be structured in various ways. The structure of an

organization determines how it operates and performs.

Functional Structure

Key Terms

• silo—in business, a unit or department in which communication

and collaboration occur vertically, with limited cooperation

outside the unit

• departmentalization—organization into groups by function,

geographic location, or other factors

Organizations commonly use a functional structure, which divides people

into smaller groups by areas of specialty such as IT, finance, operations,

and marketing. Some refer to these functional areas as silos because they

are operate vertically and are disconnected from each other. In a

functional organizational structure, the company’s top management team

typically consists of several functional heads, such as the chief financial

officer and the chief operating officer. Communication generally occurs

within each department and is transmitted across departments through

the department heads.

Learning Resource

Common Organizational Structures

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Resource Link:

Functional structures appear in a variety of organizations across many

industries. They may be most effective within large corporations that

produce relatively homogeneous goods. Smaller companies that require

more adaptability and creativity may feel confined by the silos that

functional structures tend to produce.

Advantages of a Functional Structure

Functional Structure at FedEx

This organizational chart shows a broad functional structure at FedEx. Each function—

such as HR, finance, and marketing—is managed from the top down via functional

heads (CFO, CIO, vice presidents, etc.).

Functional departments arguably permit greater operational efficiency,

because employees with shared skills and knowledge are grouped

together. Each group of specialists can therefore operate independently.

Management acts as the point of cross‐communication between

functional areas. This arrangement enables specialization.

Disadvantages of a Functional Structure

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A disadvantage of this structure is the tendency for functional groups to

not communicate with one another, potentially decreasing flexibility and

innovation. Functional structures may also be susceptible to tunnel vision,

with each function perceiving the organization only from its group’s frame

of reference. Recent trends to mitigate these disadvantages include using

cross‐departmental teams and promoting cross‐functional


Divisional Structure

Key Terms

• parent company—an entity that owns or controls another entity

• division—a section of a large


• subsidiary—a company owned by a parent company or holding


A divisional structure groups organizational functions into divisions by

product or region. Each division contains all the necessary resources and

functions to support a particular product line or geography (e.g., its own

finance, IT, and marketing departments). Product and geographic

divisional structures may be characterized as follows:

• Product departmentalization. A divisional structure organized by

product departmentalization means that the various activities related

to the product or service are under the authority of one manager. If

the division builds luxury sedans or SUVs, for example, the SUV

division will have its own sales, engineering, and marketing

departments distinct from the departments within the luxury sedan


• Geographic departmentalization. Geographic departmentalization

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involves grouping activities based on geography, such as an

Asia/Pacific or Latin America division. Geographic

departmentalization is particularly important if tastes and brand

responses differ across regions, as it allows for flexibility in product

offerings and marketing strategies (an approach known as


A common legal structure known as the multidivisional form (M‐form)

also uses the divisional structure. In this form, a parent company owns

subsidiary companies, each of which uses its brand and name. The whole

organization is ultimately controlled by central management; however,

most decisions are left to autonomous divisions. This business structure is

typically found in companies that operate worldwide—for example, Virgin

Group is the parent company of Virgin Mobile and Virgin Records.

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US Department of Energy Organizational Chart

DOE divisions are organized under three undersecretaries. Each DOE division has a

specific responsibility: nuclear security, science, or energy.

Advantages of a Divisional Structure

Generally, divisions work best for companies with wide variance in

product offerings or regions of geographic operation. The divisional

structure can be useful because it affords the company greater

operational flexibility. In addition, the failure of one division does not

directly threaten the others. In the multidivisional structure, subsidiaries

benefit from the use of the brand and capital of the parent company.

Disadvantages of a Divisional Structure

Some disadvantages of this structure include operational inefficiencies

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from separating specialized functions—for example, finance personnel in

one division not communicating with those in other divisions.

Disadvantages of the multidivisional structure can include increased

accounting and tax implications.

Matrix Structure

The matrix structure is a type of organizational structure in which

individuals are grouped by two different operational perspectives

simultaneously. This structure has both advantages and disadvantages but

is generally best employed by companies large enough to justify the

increased complexity.

In matrix management, the organization is grouped by two perspectives

the company deems most appropriate. Common organizational

perspectives include function and product, function and region, or region

and product. In an organization grouped by function and product, for

example, each product line will have management that corresponds to

each function. If the organization has three functions and three products,

the matrix structure will have nine (3 × 3) potential managerial

interactions. Thus, matrix structures are inherently more complex than

other more linear structures.

Advantages of a Matrix Structure

Proponents of matrix management suggest that it allows team members

to share information more readily across task boundaries, countering the

tendency to construct silos within functional management. Matrix

structures also allow for specialization that can both increase depth of

knowledge and assign individuals according to project needs.

Disadvantages of a Matrix Structure

A disadvantage of the matrix structure is the increased complexity in

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chain of command when employees are assigned to both functional and

project managers. The higher manager‐to‐worker ratio that sometimes

results can increase costs or lead to conflicting employee loyalties. It can

also create a gridlock in decision making if a manager on one end of the

matrix disagrees with another manager. Blurred authority in a matrix

structure can reduce agility in decision making and conflict resolution.

A matrix structure should generally only be used when the operational

complexity of the organization demands it. A company that operates in

various regions with various products may require interaction between

product development teams and geographic marketing specialists

—suggesting a matrix may be applicable. Generally, larger companies with

a need for a great deal of cross‐departmental communication benefit

most from this model.

Team‐Based Structure

The team structure is considered a newer structure for large

organizations. It is less hierarchical, less structured, and more fluid than

traditional structures like functional or divisional organization. A team is a

group of employees—ideally with complementary skills and synergistic

efforts—working toward a common goal. Teams are created by grouping

employees in a way that generates a variety of expertise and addresses a

specific operational component of an organization. These teams can

change and adapt to fulfill group and organizational objectives.

Some teams endure over time, while others—such as project teams—are

disbanded when a project ends. Teams that include members from

different functions are known as cross‐functional teams. Although teams

are described as less hierarchical, they typically still include a

management structure.

Critics argue that using the word team to describe modern organizational

structures is a fad, and that some teams are not really teams at all but

rather groups of staff. That said, team‐building is now a frequent practice

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of many organizations and can include activities such as bonding

exercises and even overnight retreats to foster team cohesion. To the

extent that these exercises are meaningful to employees, they can be

effective in improving employee motivation and company productivity.

Integration With Other Structures

One aspect of team‐based structures that will likely persist indefinitely is

the integration of team cultures within a broader structure (e.g., a

functional structure with teams interspersed). Such integration allows for

the authority and organization of a more concrete structure while at the

same time capturing the cross‐functional and projected‐oriented

advantages of teams.

For example, imagine Procter & Gamble brings together a group of

employees from finance, marketing, and research and development—all

representing different geographic regions. This newly created team is

tasked with creating a laundry detergent that is convenient, economical,

and aligned with the company’s manufacturing capabilities. The project

team might be allocated a certain number of hours a month to devote to

team objectives; however, members of the team would still be expected

to continue with their responsibilities within their functional departments.

Network Structure

Key Terms

• synergistic—cooperative, working together, interacting,

mutually stimulating

• hierarchical—classified or arranged according to various criteria

into successive ranks or grades

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In the network structure, managers coordinate and control both internal

and external relationships with their firm. The network structure is a

newer type of organizational structure often viewed as less hierarchical

(i.e., more flat), more decentralized, and more flexible than other

structures. Managers coordinate and control relations that are both

internal and external to the


The concept underlying the network structure is the social network—a

social structure of interactions. At the organizational level, social

networks can include intraorganizational or interorganizational ties

representing either formal or informal relationships. At the industry level,

complex networks may include technological and innovation networks

that may span several geographic areas and organizations. From a

management perspective, the network structure is unique among the

other structures in that it focuses on the internal dynamics within the


A network organization sounds complex, but it is a simple concept. Take,

for example, a T‐shirt design company. Because the company is mainly

interested in design, it may not want to get too heavily involved in either

manufacturing or retail—both necessary aspects of the business. So,

although the company may rent retail space, it may purchase production

capabilities from partner organizations with manufacturing facilities.

While the core company focuses mainly on designing products and

tracking finances, this network of partnerships enables much more than

just a design operation.

Advantages of a Network Structure

Proponents argue that the network structure is more agile compared to

other structures (functional, division, and even some team structures).

Silos are minimized and communication flows freely, possibly opening up

more opportunities for innovation. Because the network structure is

decentralized, it has fewer tiers in its organizational makeup, a wider span

of control, and a bottom‐up flow of decision making and ideas.

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Disadvantages of a Network Structure

On the other hand, this more fluid structure can lead to more complex

relationships in the organization. For example, lines of accountability may

be less clear, and reliance on external vendors can be quite high. These

potentially unpredictable variables essentially reduce the core company’s

control over operational success.

Modular Structure

Key Terms

• disaggregation—division or breaking up into constituent parts,

particularly categories which have been lumped together

• modular—consisting of separate units, especially where each

unit performs a specified function and can then be mixed and

matched with other units to connect, interact, or exchange


In the modular structure, an organization focuses on developing

specialized and relatively autonomous strategic business units (SBUs). The

modular structure divides a business into small, tightly knit SBUs that

focus on specific elements of the organizational process. Interdependence

among the units is limited because the focus of many SBUs is more

inward than outward, and loyalty within SBUs tends to be very strong.

The term modularity is widely used in studies of technological and

organizational systems. Product systems are deemed modular when they

can be broken down into a number of components that can then be

mixed and matched to connect, interact, or exchange resources.

Modularization leads to disaggregating the traditional form of hierarchical

governance into relatively small, autonomous organizational units, or

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modules. Modules are not generally interdependent, so the modular

organization is extremely flexible.

For example, a firm that employs contract manufacturing rather than in‐

house manufacturing is using an independent organizational component.

The organization can switch between different contract manufacturers

that perform different functions (and the contract manufacturer can

similarly work for different companies). Another modular model, one that

is more internally focused, involves various consumer services catering to

dramatically different needs or demographics. In health care, for example,

the surgery unit may interact with various other hospital departments at

different times for different reasons.

Advantages of a Modular Structure

One advantage of the modular structure is that loosely coupled structures

can enable organizations to be more flexible and restructure more easily.

For example, a company using a modular structure can respond more

quickly to different market needs. An organization can also fill its internal

corporate needs by creating a new modular department that operates

interdependently with the whole.

Disadvantages of a Modular Structure

On the other hand, more internalization and more tightly coupled

structures can produce better communication and intellectual property

gains. As a result, critics of the modular organization argue that a firm’s

modularity should be limited to the extent that its flexible nature affords

gains. Various degrees of modularity are possible but not necessarily

useful if the pros do not outweigh the cons. Managers must carefully

consider whether or not a modular structure would be useful, either

entirely or partially, for their own organizations.

Licenses and Attributions

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Common Organizational Structures (


from Boundless Management by Lumen Learning, originally published by, is available under a Creative Commons Attribution‐

ShareAlike 4.0 International (‐

sa/4.0/) license. UMGC has modified this work and it is available

under the original license.

© 2023 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the

validity or integrity of information located at external sites.

Common Organizational Structures…

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– Please use APA (7th edition) formatting 

– All questions and each part of the question should be answered in detail (Go into depth)

– Response to questions must demonstrate understanding and application of concepts covered in class, 

– Use in-text citations and at LEAST 2 resources per discussion from the school materials that I provided to support all answers. Include at least 2 references and include in-text citations.

– Responses MUST be organized (Should be logical and easy to follow)

Minimum 1.5 Pages

Discussion 1 – Strategic HR

Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace. Let’s look at a fictitious example of strategic decision making:

ABC Corporation has an organizational objective to implement new technologies to streamline various processes. HR notices a trend toward applicants with excellent customer service skills but without the technical skills that align with this organizational goal. Given this information, HR might inform senior management of this gap in skills an offer the strategic solution to hire these candidates, but also provide them with technical training to give them the skills necessary to serve the organizational objective.

Questions 1:

Post an example of how HR might use knowledge of external and/or internal forces to inform strategic decision making in an organization, including the following:

· Choose an external or internal force that affects HR – for example, changing demographics, globalization, technology  

· Identify an organizational goal that relates to that force.

· Identify a potential challenge related to that goal that HR may face.

· Assess the gap between the force you’ve chosen and the relevant organizational goal.

· Suggest an approach to bridging that gap.

· Include in-text citations to support your post


Questions 2:

Describe an example of an organizational structure in use and explain how the structure aligns with the mission and vision of the organization.  

· Include in-text citations to support your post

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