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Attracting, Selecting, and

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Title: Attracting, Selecting, and


1
Chapter 11
  • Attracting, Selecting, and
  • Developing Employees

2
Staffing
  • Staffing involves bringing new people into the
    organization and then moving them through, and
    perhaps out of, the firm.
  • Staffing consists of three stages
  • recruiting
  • selection and hiring
  • placement
  • These staffing activities are coupled with the
    training and development function to match the
    abilities of the job candidate with the needs of
    the firm.

3
Staffing or Training?
  • Should a firm hire people who are ready to step
    into their jobs, or should it groom them
    through training programs?
  • With selection and placement, new employees have
    proven skills and can begin work immediately.
  • With training and development, people can be
    hired at lower rates of pay if they come to the
    firm untrained, and training and development can
    be tailored exactly to the companys needs.

4
The Staffing/Training Balancing Act(Figure 11-1)
5
Recruiting
  • Recruiting is the first of staffings three
    stages.
  • Recruiting refers to all activities involved in
    finding interested and qualified applicants for a
    job opening.
  • The greater the number of applicants and the
    better their qualifications, the more likely it
    is that the firm will build a solid personnel
    base.

6
The Gillette International Graduate Trainee
Program
  • The program grooms local talent in the countries
    where the firm has business operations.
  • Training includes an 18-month term at the
    companys Boston headquarters, followed by an
    entry-level position in the home country.
  • At headquarters, an executive mentor is
    responsible for overseeing the trainees training
    and education in Gillettes operations.
  • About half the trainees have moved into executive
    positions, and many have returned to the U.S. or
    moved to other countries to pursue international
    careers.

7
Global Staffing at Colgate-Palmolive
  • Almost 70 of Colgate-Palmolives 7 billion in
    sales come from overseas. 60 of its employees
    operating outside their home countries come from
    places other than the U.S.
  • Two of the last four CEOs were from outside the
    U.S.
  • All top executives must speak at least two
    languages, and important meetings take place all
    over the globe.
  • In 1991 a global team of Colgate human resource
    leaders and senior-level managers began a
    year-long quest to develop global HR policies
    that would mesh with business goals.
  • These efforts culminated in a Global Human
    Resources conference, with more than 200 HR
    leaders from more than 35 countries in attendance.

8
Sources of Applicants (Figure 11-3)
9
Sources of Applicants (Figure 11-3)(Continued)
10
Internet Recruiting
  • The Internet is the hottest tool for recruiting.
  • Search engines such as Yahoo! and Excite as well
    as bulletin boards and news groups provide job
    information.
  • Job Banks include Americas Job Bank, the Monster
    Board, and others.
  • Cisco Systems gets 500,000 hits a month on its
    Internet job pages. It hires 1,200 people every
    three months, making 66 of its hires from the
    Net.

11
Merits of Internal and External Recruiting Sources
  • Merits of internal methods
  • Employees are familiar with the organization.
  • Recruiting and training costs are relatively low.
  • Enhance employee morale and motivation since they
    send a signal that the organization offers
    opportunities for advancement.
  • Merits of external methods
  • Introduce new ideas and approaches.
  • Provide knowledge and skills that are not
    currently available in the organization.
  • Permit new hires to start with clean slates.
  • Reduce political infighting for promotions.

12
The Outsourcing Alternative
  • In the face of increasing demand, evolving needs,
    or cost considerations firms may use outside
    parties to perform tasks that would otherwise be
    performed in house.
  • This is a popular, rapidly-growing option.
  • In 1996, American firms spent over 100 billion
    in outsourced business activities.
  • By outsourcing some activities, firms can
    concentrate their resources on their core
    competencies, the things that they do
    particularly well.

13
The Realistic Job Preview (RJP)
  • Most companies present a rosy picture of
    themselves and their job openings in order to
    attract job applicants.
  • As a result, many new employees experience entry
    shock and are dissatisfied when they learn the
    truth about the company.
  • The aim of realistic job preview (RJP) is to give
    the recruit an accurate picture of what the
    company and the job are like.
  • RJPs lead to higher levels of employee
    satisfaction and lower levels of turnover. They
    dont appear to reduce job acceptance rates.

14
Bottom Line The Recruiting Process
Identify a Job Opening
15
Selection
  • The role of selection is to evaluate each
    candidates qualifications and pick the one whose
    skills and interests best match requirements of
    the job and company.
  • Some firms use informal selection procedures,
    such as reviewing application blanks and resumes.
    Others use formal procedures, such as tests and
    assessment centers.
  • Careful selection procedures can be time
    consuming and costly. They are worthwhile if
  • the costs of a wrong decision are high
  • there are many applicants and few openings
  • selection tools are accurate

16
Focus on Management Selection at Toyota
  • When Toyota Motor Corp. wanted to fill positions
    at its new Kentucky auto assembly plant, it
    received 90,000 applications from 120 countries
    for its 2,700 production jobs and thousands more
    for the 300 office jobs.
  • The company wanted to select workers who would
    conform to its emphasis on teamwork, loyalty, and
    versatility.
  • In addition to physical exams and drug tests,
    applicants had to spend as much as 25 hours
    completing written tests, workplace simulations,
    and interviews.
  • Only 1 of 20 applicants made it to the interview.

17
Application Forms
  • The application form is the first source of
    information about a potential employee.
  • It provides the hiring firm with information
    about educational background, work experience,
    and outside interests.
  • Much of this information is especially useful for
    screening purposes.

18
Problems with Application Forms
  • The information provided by the applicant may not
    be relevant to job performance.
  • Job applicants may provide incorrect or
    misleading information.
  • The law places many restrictions on what can and
    cannot be asked on a job application.

19
Some Unfair Pre-Employment Inquiries(Excerpted
from Figure 11-4)
  • Any inquiry that implies a preference for people
    under 40 years of age
  • Whether applicant is a citizen any inquiry into
    citizenship than tends to divulge applicants
    lineage, ancestry, national origin, descent, or
    birthplace
  • All inquiries relating to arrests
  • Request that applicant submit a photograph
  • Gender
  • Any inquiry concerning race or color of skin,
    hair, eyes, etc.
  • Any inquiry concerning religious denomination,
    affiliations, holidays observed, etc.

20
Lighten Up Rotten Resumes
  • I am extremely loyal to my present firm, so
    please dont let them know of my immediate
    availability.
  • Note Please dont misconstrue my 14 jobs as job
    hopping. I have never quit a job.
  • Marital status Often. Children Various.
  • Wholly responsible for two (2) failed
    institutions.
  • Terminated after saying, It would be a blessing
    to be fired.
  • I am writing to you, as I have written to all
    Fortune 1000 companies every year for the past
    three years, to solicit employment.
  • Its best for employers that I not work with
    people.
  • Excellent memory strong math aptitude excellent
    memory effective management skills and very
    good at math.

21
Interviews
  • In an interview, a representative of the hiring
    firm asks the candidate a series of questions.
  • The goal of the interview is to determine how
    well the candidates skills and interests match
    the job requirements.
  • In a structured interview, all candidates are
    asked the same list of questions in the same
    order. This gives each applicant the same chance
    as others, makes it easier to compare candidates,
    and makes it less likely the firm will be sued
    for discrimination in hiring.
  • In an unstructured interview, there is a looser
    exchange between the interviewer and job
    candidate. This may result in a more complete
    picture.

22
Advantages of Interviews
  • It is easier to ask a series of questions than to
    develop a test.
  • Interviewing makes the selection process more
    personal and gives the interviewer an overall
    idea as to whether the applicant is right for the
    job.
  • The interview may be used to give the applicant
    information about the job and company.
  • Interviews may be used to sell the company to
    the applicant.
  • Interviews may be be used to complete the
    information about job candidates.
  • Good candidates may be unwilling to consider a
    job seriously unless they had the change to ask
    questions and gather information.

23
Problems with Interviews
  • Interviewers
  • show many biases
  • disagree with one another
  • ignore much of the information available
  • The success of an interview in identifying the
    best candidate for the job depends on the skill
    and good judgment of the individual interviewer.
  • There are severe legal restrictions on what can
    be asked in interviews.

24
Guidelines for Improving Interviews
  • Interviewers should prepare for interviews by
    making a list of specific topics to be covered
    and/or specific questions to be asked.
  • Interviewers should be trained in preparing
    questions that relate to job requirements,
    probing for details, listening carefully, and
    avoiding discriminatory questions.
  • Interviewers should use behavioral and
    situational questions.
  • Written records of the interview should be kept.
  • Whenever possible, multiple interviewers should
    be used.
  • Interviews should be used along with other
    selection tools.

25
The Bottom Line The Job Interviewing Process
Determine Job Requirements and Employee Qualificat
ions Needed
26
Testing
  • A test is a systematic and standardized procedure
    for obtaining information about individuals.
  • Testing is a relatively objective way to
    determine how well a person may do on the job.
  • Many human resource experts and human resource
    managers believe testing is the single best
    selection tool.
  • Tests yield more information about a person than
    does a completed application form, and they are
    generally less biased than interviews.

27
Types of Tests
  • Ability tests measure whether the applicant has
    certain skills needed to perform the job tasks.
  • Personality tests measure the strength or
    weakness of personality characteristics that are
    considered important for good performance on the
    job.
  • Interest tests measure a persons likes or
    dislikes for various activities.
  • Work sample tests measure how well applicants
    perform selected job tasks.

28
Types of Tests (Continued)
  • Integrity tests measure an applicants honesty.
  • Drug and impairment tests measure abuse of
    alcohol or other drugs.
  • Genetic testing applies the science of genetics
    to the testing of workers.

29
Forms of Ability Tests
Ability Tests
30
Integrity Tests
  • A polygraph (lie detector) test is an
    electronic device used to detect lying. Due to
    concerns about validity and invasion of privacy,
    a 1988 federal law outlawed most private uses of
    pre-employment polygraph tests aimed at assessing
    employee honesty.
  • Written honesty or integrity tests contain
    items concerning ones attitudes toward theft and
    other forms of dishonesty. These may be less
    valid than the polygraph tests they replace, and
    may cause resentment.
  • Many firms use credit checks to judge applicant
    integrity. There are legal restrictions
    regarding credit checks.

31
Drug and Impairment Tests
  • Drug and impairment tests measure abuse of
    alcohol and other drugs.
  • Drug tests may involve examination of body
    fluids, such as urine and blood, or hair, or of
    reaction of the pupil to light.
  • In response to concerns about violation of rights
    of privacy and errors in the testing process,
    many firms instead use impairment testing. This
    involves use of activities similar to a video
    game to measure an employees ability to work.
  • Impairment tests detect impairment due to things
    such as illness, sleep deprivation, and emotional
    preoccupation that would be missed by drug tests.

32
Genetic Testing
  • Genetic testing takes two forms
  • genetic monitoring involves periodically testing
    groups of employees to see whether they are
    showing any alarming chromosomal abnormalities
    that might have been caused by their environment.
  • genetic screening is a one-time analysis of DNA
    taken from blood or other bodily fluids. It is
    aimed at finding genetic markers that indicate
    that a person may be especially susceptible to
    harm from a particular substance.
  • Genetic monitoring has the approval of most
    observers since it provides an early warning of
    dangers from the work environment, but genetic
    screening is controversial.

33
Focus on Management Too Smart forthe New London
Police Department
  • The city of New London, Connecticut refused to
    grant Robert Jordan a job interview because he
    scored too high on a pre-employment test.
  • The citys rationale was that employees who are
    too smart are likely to be bored in patrol jobs
    and thus to leave the force.
  • Jordan sued the department, but a federal judge
    ruled that the practice of excluding too-bright
    applicants was constitutional.

34
Test Validity
  • Validity is the degree to which predictions from
    the selection device are supported by evidence.
  • Valid tests are expensive to develop.
  • Some jobs, such as those of top management, are
    hard to describe, and the abilities and interests
    required may be all but impossible to predict on
    the basis of test results.
  • In general, ability tests and work sample tests
    are more valid than other selection tools.

35
Graphology
  • Graphology, or handwriting analysis, is sometimes
    used to predict performance.
  • The theory behind graphology is that handwriting
    reflects personality.
  • Graphology is very popular in western Europe
    most French companies require applicants to
    submit handwritten letters.
  • While graphology is difficult to fake, there is
    no solid evidence that it predicts job
    performance.

36
Test Fairness
  • Everyone agrees that a test should be fair, but
    few agree on a definition of fairness.
  • To some people, a test is unfair if it includes
    questions about things that might be unfamiliar
    to some people because of their race or ethnic
    origin.
  • To other people, a test is unfair if it measures
    things that arent needed on the job but that
    block some people from being hired.
  • In the eyes of the law, a fair test is one that
    does not overpredict or underpredict performance
    of one group of employees relative to another.

37
Assessment Centers
  • An assessment center is a collection of
    systematic procedures to approach the selection
    process systematically.
  • The centers employ psychologists and other
    experts on human behavior as well as providing
    tests, interviews, group discussions, and other
    approaches for evaluating job candidates.
  • Assessment centers may use role playing and
    in-baskets.
  • Assessment centers have additional uses,
    including early detection of management talent
    and skill development for assessors.
  • While expensive, assessment centers are quite
    valid and are seen by employees as offering a
    fair chance to show abilities.

38
Selecting for Teams
  • As organizations rely more heavily on teams, they
    must carefully screen team candidates for their
    ability to work with other team members.
  • In putting together a self-directed team, Delta
    Dental Plan
  • spent more than 6 months recruiting and selecting
    team members.
  • used a personality test to find members with
    complementary personality types.
  • selected some bilingual team members.
  • selected members from both inside and outside the
    company.
  • assessed candidates interpersonal skills with
    interviews by members of the HR department and
    others.

39
The Bottom Line The Selection Process
Identify Selection Methods Based on Job
Requirements and Desired Employee Qualifications
40
Placement
  • Placement means fitting people and jobs together
    after the people have become employees of the
    firm.
  • It includes everything from helping new employees
    feel at home in the firm to promoting them to
    positions of greater responsibility or demoting
    them to less demanding position when necessary.

41
Orientation
  • Orientation involves introducing new employees to
    their jobs and to the company.
  • Orientation
  • reduces uncertainties, makes company policies and
    expectations clear, and provides a good idea of
    what the firm, plant, and coworkers are like.
  • sends a signal that the new employee has an
    important role to play in the organization.
  • offers a bonding opportunity, ensuring that new
    hires dont feel alienated and helping to instill
    in them a sense of pride and opportunity.

42
Lateral Move
  • A lateral move is sideways rather than up or
    down.
  • One type of lateral move, job rotation, may be
    used to build worker skills and provide a more
    solid base for later promotions.
  • Employees may welcome the change of pace and
    duties of job rotation, and may develop a greater
    sense of pride and self-worth as they learn new
    skills.
  • Lateral moves are sometimes dictated by
    organizational changes, such as reorganizations.

43
Lateral Moves at W. R. Grace
  • W. R. Grace Company, a chemical and consumer
    products company, has been using lateral moves
    for years.
  • Purposes include
  • assignment to special projects for the companys
    future
  • to fill slots at locations far from their current
    posts
  • to newly created jobs in other countries
  • The companys VP for corporate administration
    reports that, They get new challenges, and we
    get broadened managers -- something a global,
    decentralized company must have.

44
Promotion
  • A promotion is a move up, generally to a new
    title, more responsibility, and greater financial
    rewards.
  • Promotions are valued by employees, and move
    competent employees to positions with greater
    impact on the firms success.
  • Promotions also demonstrate to other employees
    that good performance and potential are rewarded,
    thus serving as a motivating device.
  • Promotions must be handled carefully since jobs
    at different levels may require different skills.
    If not, the Peter Principle may occur.
  • Some firms have instituted fallback positions for
    employees who are unhappy with their promotions.

45
Demotion
  • A move down in the organizational hierarchy to a
    lower title, less responsibility, and lower
    salary is called a demotion.
  • Demotions are stressful to employees and may be
    resisted by unions.
  • Demotions may be necessary. A firm may, for
    instance, demote rather than fire a
    poorly-performing employee. Also, especially
    during economic downturns, employees may prefer
    demotions to unemployment.
  • Some firms have experimented with demoting
    employees temporarily so they can relate better
    to their subordinates.

46
Termination
  • Sometimes firings are necessary because employees
    have continued to perform poorly or because they
    have been unmotivated or uncooperative.
  • Firings are traumatic for the terminated
    individual and costly for the firm. For
    instance, the firm will have to bear the costs of
    recruiting and training a replacement.
  • Employees who are performing below standards
    should be counseled and given written performance
    goals and plans for meeting them.
  • Those employees should have a probationary period
    and should receive regular feedback over that
    period.

47
Termination (Continued)
  • Firing should only be used if corrective efforts
    fail, as a last resort.
  • In recent years, many employees have been fired
    as a result of things having little to do with
    their motivation or performance, such as
    technological changes, restructuring, mergers,
    changes in strategy, and foreign competition.
  • In some cases, firms hire outplacement companies
    to assist those who are affected.
  • There are increasing legal restrictions on firing.

48
Guidelines for Effective Termination
  • Give as much warning as possible for mass
    layoffs.
  • Be sure the employee hears of the termination
    from a manager, not from a colleague.
  • Sit down one-on-one in a private office with the
    individual to be terminated.
  • Tell the individual in the first sentence that
    he or she is terminated leave no room for
    confusion.
  • Express appreciation for the employees past
    accomplishments if appropriate.

49
Guidelines for Effective Termination (Continued)
  • Complete the firing session within 15 minutes.
    Make the session brief and to the point, not an
    opportunity for debate.
  • Keep the conversation professional, avoiding
    personal comments.
  • Briefly explain how much severance pay will be
    provided and for how long provide written
    explanations of severance benefits.
  • Unless security is an issue, dont rush the
    employee off site.

50
Training and Development
  • Training and development helps the firm meet its
    immediate human resource needs.
  • Over the long run, training and development
    ensures that the firms employees are ready to
    meet future challenges.
  • Training and development takes many forms.
  • Firms in the U.S. spend an estimated 30 billion
    annually to train employees.

51
Training and DevelopmentNeeds Assessment
  • In general, training and development should
    follow a systematic needs assessment.
  • The needs assessment should consider three sets
    of factors
  • The organization. What is the environment for
    training in terms of the organizations goals,
    resources, and climate for training?
  • The task. What is the work to be performed and
    what are the conditions under which it will be
    performed?
  • The person. What personal capabilities are
    needed to do the job, and what are the people
    like who will do the job?

52
On-the-Job Training
  • On-the-job training is conducted while employees
    perform job-related tasks. Employees are not
    taken out of the workplace or put in a classroom.
  • Employees learn the job by doing it, with
    coaching and feedback from a supervisor or more
    experienced employees.
  • On-the-job training is the most direct approach
    to training and development and offers quick
    returns in terms of improved performance.
  • Job rotation, regular coaching by a supervisor,
    committee assignments to involve individuals in
    decision-making activities, and staff meetings to
    broader employee understanding of company
    activities outside their immediate areas are
    examples.

53
Off-the-Job Training
  • It is often necessary to train employees away
    from the workplace.
  • Such off-the-job training may take place
    elsewhere within the firm or outside the company.
  • There are many popular off-the-job training
    techniques.

54
Forms of Off-the-Job Training
Off-the-Job Training
55
Training in Japan
  • Workers in the U.S. often receive far less
    training than their Japanese counterparts.
  • New production workers in Japan receive 380 hours
    of training, and new workers in Japanese-owned
    plants in the U.S. receive 370 hours.
  • In contrast, new workers in U.S.-owned plants in
    North America receive only 47 hours of training,
    or one-eighth as much.

56
Corporate Universities
  • Corporate universities are educational
    organizations established and run by a
    corporation to educate employees, customers, and
    suppliers.
  • There were an estimated 1,600 corporate
    universities in 1999, up from 400 in 1998.
  • Dow Chemical -- which has training expenditures
    of more than 90 million annually -- is
    developing online learning over its companys
    intranet.
  • In the first nine months, Dow developed 31
    classes, and over one-quarter of its employees
    completed one or more courses.

57
Virtual Reality
  • Virtual reality immerses the trainee in a
    simulated setting through the use of computer
    peripherals and stereographic imaging.
  • Although virtual reality techniques are
    expensive, they typically cost much less than
    training on real equipment.
  • Using a specialized display system called a
    haptic interface, virtual reality can now
    simulate touch.

58
Web Wise The Virtual Environment Technology
Laboratory (VETL)
  • The Virtual Environment Technology Laboratory is
    a joint enterprise of the University of Houston
    and NASA/Johnson Space Center.
  • It performs research and development focused on
    virtual environments for training, education, and
    scientific/engineering data visualization.
  • www.vetl.uh.edu/

59
Training for Tolerance
  • In addition to techniques such as sensitivity
    training which may be used to enhance tolerance
    toward minority group members, firms are adopting
    many other approaches.
  • At Hoechst Celanese the top 26 officers are each
    required to join two organizations in which they
    are a minority.
  • IBMs Systems Storage Division in San Jose,
    California (a city where 33 languages are spoken)
    launched an annual diversity day in 1993.
  • Firms are providing training to integrate sexual
    orientation into their ongoing diversity efforts.
  • Many firms are gender training to promote
    tolerance between the sexes.

60
The Bottom Line The Training Process
Conduct a Training Needs Analysis
61
Performance Appraisal
  • Performance appraisal is the process of measuring
    employee performance against established goals
    and expectations.

62
Why Appraise Performance?
Performance Appraisal
63
Guidelines for Improving Performance Appraisals
  • Ensure that the performance appraisal measure is
    reliable and valid.
  • Provide training for raters.
  • Involve employees in the process.
  • Make sure the performance ratings are discussed.
  • Develop an action plan based on the discussion.
  • Attempt to link merit increases to performance
    ratings.
  • Integrate performance evaluation into the broader
    process of day-to-day performance management.

64
Types of Performance Measures
  • With trait approaches, employees are rated on
    such traits as friendliness, efficiency, and
    punctuality. The assumption is that these traits
    are related to performance. Trait approaches
    suffer from a variety of problems, and should
    never be used alone.
  • With behavioral approaches, such as the critical
    incidents method and behaviorally anchored rating
    scales, employees are rated on specific actions.
  • With outcome approaches, employees are rated on
    what they are supposed to accomplish on the job.

65
Performance Reviews at Northern States Power
  • Northern States Power Company is committed to
    achieving the benefits of workplace diversity.
  • Its annual performance reviews now include an
    assessment of how well an individual creates an
    environment that cultivates workforce diversity.
  • The reviews also measure each persons active
    participation in meeting departmental diversity
    goals.

66
360o Feedback
  • Many firms are now using 360-degree feedback.
  • With 360-degree feedback, the employee receives
    feedback from four sources the supervisor,
    subordinates, peers or coworkers, and
    self-ratings.

Self
67
The Bottom Line The Performance Appraisal Process
Communicate Performance Expectations to Employees
68
Job Analysis, Job Specification, Job Description,
and Performance Standards
  • Job Analysis is the systematic study of a job to
    determine its characteristics.
  • A job specification is a summary of the
    qualifications needed in a worker for a specific
    job.
  • A job description is a short summary of the basic
    tasks making up a job.
  • Performance standards define the goals to be
    achieved by a worker over a specified period of
    time.

69
Pay Systems
  • Seniority Pay is linked to years of service.
    The idea is that seniority reflects loyalty to
    the company as well as valuable experience.
  • Individual performance Individual employees are
    paid on the basis of how well they do on the job.
    With a piece-rate system, total wages are tied
    directly to output. These have strong
    motivational effects.
  • Group performance How much each person makes is
    based on how well the group as a whole does.
    Such systems encourage cooperation, and may give
    group members an incentive to push slow workers
    to do better.

70
Guidelines for Basing Pay on Individual or Group
Performance
  • Appropriately link pay to performance.
  • Use pay-for-performance as part of a broader
    human resources management system.
  • Build employee trust and promote the belief that
    performance makes a difference.
  • Use multiple layers of rewards.
  • Increase employee involvement.
  • Include nonfinancial incentives.

71
Pay Systems (Continued)
  • Plantwide or company productivity Employee pay
    rates are based in part on the productivity of
    the entire plant or organization. One form is
    the Scanlon Plan, in which groups of employees
    suggest to management how productivity might be
    improved and are given bonuses if the suggestions
    help.
  • Organization-based These include plans such as
    profit-sharing plans, under which employees get a
    bonus if company profits are high, and employee
    stock option plans (ESOPS), which reward
    employees with company stock. Organization-based
    plans give companies flexibility to make payments
    when they can be afforded and may result in
    positive employee attitudes toward the company,
    but have little impact on individual performance.

72
The Wage Determination Process(Figure 11-6)
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