THIS DOCUMENT IS MEANT TO HELP YOU STUDY FOR YOUR UPCOMING EXAM. IT IS NOT MEANT TO BE AN EXHAUSTIVE GUIDE TO EVERYTHING THAT WILL BE COVERED ON THE TEST. PLEASE STUDY YOUR POWERPOINTS, TEXTBOOK, AND LEARNING OBJECTIVES AND USE THIS GUIDE ONLY AS A SUPPLEMENT TO YOUR STUDYING.

Challenges of HRM

1. Briefly explain the difference between Outsourcing and Offshoring.
Outsourcing: wanting to focus an organizations activities on what they do best, people are working more on contract base or part-time. Has been one of the most prominent HR trends of the last 10 years; contracting outside the organization to have work done that formerly was done by internal employees

Offshoring: the business practice of sending jobs to other countries. “global sourcing”; Cost reductions are among the key motivators, especially among labor costs. Workers are highly educated and work for half the cost; the business practice of sending jobs to other countries

2. Globalization is defined as the trend towards opening up foreign markets to international trade and investment. What are two (2) of the main impacts of globalization? * approximately 70%-85% of the US economy is affected by international competition * about 10% of what Americans produce every year, dollar wise is sold abroad
1. “anything, anytime, anywhere” markets
2. partnerships with foreign firms
3. lower trade and tariff barriers

3. What is the difference between Human Capital and Human Resources Management?

Human Capital: the knowledge, skills, and capabilities of individuals that have economic value to an organization; it is intangible and cannot be managed the way organizations manage jobs, products, and technologies
-based on company specific skills
-gained through long-term experience
-can be expended through development
Human Resources Management: the process of managing human