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Title: If employers want to go the astrology route, they need


1
Staffing Organizations
  • Prof. John Kammeyer-Mueller
  • MGT 6366

2
Staffing
  • What does staffing entail?
  • Figuring out how many people you need to hire
  • Deciding whether to make or buy talent
  • Understanding whom you need to hire
  • Maintaining consistency with legal requirements
  • Developing recruiting plans
  • Selecting the best employees from those who apply
    and show interest
  • Retaining existing employees

3
Goals for the Course
  • Learn how staffing fits into the organization
  • Strategy leads to staffing choices
  • Staffing leads to strategic choices
  • Learn how to learn about staffing
  • Statistical techniques
  • Implementation techniques and practices
  • Learning about staffing will help you
  • (A) learn how to succeed in your careers and
  • (B) help the organizations where you work
    succeed.

4
A quick quiz on staffingTrue or false?
  • You can legally refuse to hire someone based on
    their zodiac symbol.
  • Legally, companies can only give name, position
    title, and years of employment to companies who
    are asking for references.
  • The most valid employment interviews are designed
    around each candidates unique background.
  • Surveys that directly ask employees how important
    pay is to them are likely to overestimate pays
    true importance in actual decisions related to
    employment.
  • Although there are integrity tests that try to
    predict whether someone will steal, be absent, or
    otherwise take advantage of an employer, they
    dont work in practice because people lie on
    them.
  • On average, applicants who answer job
    advertisements are likely to have higher turnover
    than those referred by other employees.
  • On average, conscientiousness is a better
    predictor of job performance than is
    intelligence.
  • Companies that screen job applicants for values
    have higher performance than those that screen
    for intelligence.

5
Science vs. common sense An object lesson
  • You can legally refuse to hire someone based on
    their zodiac symbol.
  • TRUE
  • Companies can only give name, position title, and
    years of employment to companies who are asking
    for references.
  • FALSE
  • The most valid employment interviews are designed
    around each candidates unique background.
  • FALSE (70 of HR managers get this right)
  • Surveys that directly ask employees how important
    pay is to them are likely to overestimate pays
    true importance in actual decisions related to
    employment.
  • FALSE (35 of HR managers get this right)

6
Science vs. common sense An object lesson
  • Although there are integrity tests that try to
    predict whether someone will steal, be absent, or
    otherwise take advantage of an employer, they
    dont work in practice because people lie on
    them.
  • FALSE (32 of HR managers get this right)
  • On average, applicants who answer job
    advertisements are likely to have higher turnover
    than those referred by other employees.
  • TRUE (49 of HR managers get this right)
  • On average, conscientiousness is a better
    predictor of job performance than is
    intelligence.
  • FALSE (18 of HR managers get this right)
  • Companies that screen job applicants for values
    have higher performance than those that screen
    for intelligence.
  • FALSE (16 of HR managers get this right)

7
Just how bad is staffing in some companies?
  • Psychics Add New Dimension in Recruitment
  • Hy Kaplan and Phyllis Schwartz, principals of
    Advisor Associates in Cherry Hill, N.J., offer a
    unique service to help companies make the best
    hiring decisions. Theyre psychic consultantsThe
    psychics never meet the applicants they do
    readings on they dont see any photographs.
  • The only information they need to conduct a
    psychic reading is name, age, gender, the
    city/town where the person lives and the job
    position for which he or she is being hired. For
    example, if they were given only the name and
    town of Robert Smith, they could obtain psychic
    information on any one of at least a dozen Robert
    Smiths living there. To conduct the reading,
    Kaplan and Schwartz mentally focus on the five
    pieces of information. They sit together in their
    office, close their eyes and talk out loud as
    they receive their psychic information.
  • Have they ever been wrong? Kaplan says if they
    have, hes not aware of it. In fact, he claims an
    accuracy rate of 93 and would claim 100 if he
    had received results back from all their clients.
    But 93 is enough for Kaplan to feel justified in
    charging companies 1,000 or more per assessment.
    Thats very cheap, he says.
  • From HRFOCUS

8
Just how bad is staffing in some companies?
  • Whats Your Sign? Companies Use Otherworldly
    Assessment Methods to Choose Right Employees
  • Martha E. Ramsey, an astrologer and American
    Federation of Astrology research member from
    Arizona, knows several astrologers who counsel
    business executives looking for additional
    information on future employees. If employers
    want to go the astrology route, they need a
    birthdate, birthplace, and time of birth for an
    astrologer to make the applicants chart. On each
    chart are three elements which dictate the
    personality type the sun, the moon and the
    ascendant.
  • Those searching for a more scientific approach
    to hiring may want to consider handwriting
    assessments.
  • From PERSONNEL JOURNAL

9
Another quick quizWhat do you think are
effective methods?
  • Application blank (e.g., years of work
    experience, education, schools attended)
  • Biodata inventory (e.g., life activities)
  • Cognitive ability test (like an IQ test)
  • Conscientiousness personality test
  • Integrity test
  • Reference check
  • Unstructured interview
  • Work sample

10
Just how bad is staffing in some companies?
11
Just how bad is staffing in some companies?
12
Just how bad is staffing in some companies?
13
HR Metrics
  • There has been a growing push to quantify HR
  • If HR cannot answer questions about the costs and
    benefits of their programs, they lack credibility
  • If companies cannot assess returns on investments
    on HR programs, they will not choose optimal
    solutions
  • HRIS makes quantifying HR much easier
  • Major types of HR metrics
  • Services
  • Costs
  • Attitudes
  • Performance

14
A Structural Model of Staffing and Firm
Performance
  • Staffing methods
  • Recruiting good candidates
  • Selecting for skills abilities
  • Selecting motivated people
  • Organization outcomes
  • Stock prices
  • Lower admin. costs
  • Revenues
  • Customer service
  • Work outcomes
  • Improved coordination
  • Reduced turnover
  • Higher productivity
  • Employee development
  • Learning new skills
  • Developing career tracks
  • Performance management
  • Measuring outcomes
  • Rewarding performance

The links in this model have all been empirically
substantiated
15
Staffing is Associated with Real Results
  • Human capital focused HR is associated with
    product quality and employee productivity
  • Selection sophistication and profit r0.48.
  • Use of cognitive ability tests, structured
    interviews, and validation studies is
    significantly correlated with organizational
    profit and profit growth
  • A 1 SD increase in HPWP is associated with a
    profitability increase of 3,814 per employee
  • Discrimination lawsuit losses leads to a
    2-for-1 dollar of settlement reduction in firm
    stock price

16
Staffing is Associated with Real Results
  • Companies that initiate commitment-oriented human
    resources systems have lower turnover rates
  • Companies that engage in information sharing,
    internal staffing, and other participation
    methods have lower turnover rates (about 7 lower
    for each SD change in HPWP)

17
Staffing can be a unique source of competitive
advantage
  • Competitive advantage
  • Something you have that other companies dont
    have
  • Sustained competitive advantage occurs when you
    have something that is difficult to imitate
  • Staffing is contingent
  • Each step in the staffing process depends on all
    other elements and they may not apply to all
    situations
  • Isomorphic pressures due to industry and
    occupation dictate some HR practices
  • Less obvious examplesHR systems have complex
    elements that need to work together

18
Discussion Questions
  • What would be the potential problems with a
    staffing process in which vacancies were filled
  • On a lottery basis from among job applicants?
  • On a first come-first hired basis?
  • What would be the advantages of using one of the
    above processes?
  • This is not an abstract question, HR magazine
    covered healthcare companies that engage in
    quick decision hiring recently because their
    turnover rates are too high to use traditional
    hiring

19
Nature of Staffing
  • Definition
  • Process of acquiring, deploying, and retaining a
    workforce of sufficient quantity and quality to
    create positive impacts on the organizations
    effectiveness
  • Implications of definition
  • Acquire, deploy, retain
  • Staffing as a process or system
  • Quantity and quality issues
  • Organization effectiveness

20
Changes in the Market for HR Professionals
  • Outsourcing
  • Much of the core HR work is now done by firms
    with a specific organizational focus
  • Services include recruiting message development,
    developing of selection test batteries, employee
    talent management systems, benefits packages
  • Technology
  • HR is become more quantitative because of an
    increased capability to integrate disparate
    pieces of data
  • Many core HR tasks like payroll have been
    automated
  • Some software designs even allow companies to
    determine their legal compliance

21
The Staffing Components Model
Applicant (person)
Organization (job)
Recruitment (identification and attraction)
Selection (assessment and evaluation)
Employment (decision making and match)
22
Staffing for your jobHow did it happen?
  • Recruitment
  • Why did you apply for this job?
  • What did you do to make yourself attractive?
  • Selection
  • How did you learn about the jobs requirements and
    rewards?
  • How did you assess your fit to these?
  • Employment
  • Why did you accept the job?
  • Recruitment
  • How did they identify you as an applicant?
  • How did they make the job attractive to you?
  • Selection
  • What techniques were used to learn about your
    knowledge, skills, and abilities?
  • Employment
  • Why do you think the company stayed with you?
  • What did the final offer look like?

23
Staffing is ContingentExamples of Variations
  • Police department staffing example (Madison, WI)
  • Thirty position openings
  • Police recruited 1,284 initial applicants
  • Those with drivers license, vision correctable
    to 20/20 and no felony record took a test
  • Of the 900 minimally qualified, 200 of the best
    test performers were selected for physical
    ability test
  • Of the 68 who passed the physical test, 40 passed
    a background check and panel interview
  • Of those who passed this stage, the final 30
    individuals were individually selected by the
    police chief

24
Staffing is ContingentExamples of Variations
  • Automobile plant staffing example
  • Toyotas assembly plant in Georgetown, Kentucky
    has received over 200,000 applications for 7,500
    assembly jobs since 1986
  • Applicants go through an initial assessment test
  • Those who remain go to a simulated work day by
    screwing bolts, inspecting parts, and take some
    written tests
  • Some self-select out of the applicant pool after
    of the simulated day of work
  • Interviews follow for those who remain

25
Staffing is ContingentExamples of Variations
  • University staffing
  • Initial placement of a position description
    through professional groups and the Chronicle of
    Higher Education
  • Individuals submit application materials
    including samples of their work, an academic
    vitae, and professional references
  • The hiring committee reviews these applications
    and invites a set of 5-10 individuals to discuss
    job opening at professional conferences
  • A final set of three individuals are flown to the
    university for a day of interviews and a job talk
  • Final hiring is done through a consensus of all
    members of the academic department

26
Staffing is ContingentExamples of Variations
  • Achievement Plus director
  • New position, never been staffed before.
  • The position is shared between two existing
    organizationsa school district and a charitable
    foundation
  • Committee of individuals within the foundation
    and representatives from the school district
    developed a list of principles
  • They solicited applicants, including school
    administrators, civic leaders, and education
    experts
  • Résumés of internal and external individuals were
    reviewed jointly, together with statements of
    intent
  • Large committee interviews and several ongoing
    one-on-one interviews were conducted in the final
    stage

27
Exh. 1.7 Strategic Staffing Decisions
  • Staffing Levels
  • Acquire or develop talent
  • Lag or lead system
  • External or internal hiring
  • Core or flexible workforce
  • Hire or retain
  • National or global
  • Attract or relocate
  • Overstaff or understaff
  • Hire or acquire
  • Staffing Quality
  • Person/Job or Person/Organization match
  • Specific or general KSAOs
  • Exceptional or acceptable workforce quality
  • Active or passive diversity

28
Components of StaffingOrganizations Model
(continued)
  • Staffing strategy
  • An outgrowth of the interplay between
    organization and HR strategy
  • Involves key decisions regarding acquisition,
    deployment, and retention of organizations
    workforce
  • Guide development of recruitment, selection, and
    employment programs
  • Support activities
  • Serve as foundation for conduct of core staffing
    activities
  • Core staffing activities
  • Focus on recruitment, selection, and employment
    of workforce
  • Staffing and retention system management

29
HR configurations Matching Sets of HR Practices
  • Consider two idealized types of HR practices
  • Internal market
  • Internal promotion, training, pay for
    time-in-position, commitment
  • External market
  • Almost all external hiring, almost no training,
    pay only for performance

30
Images of the Labor Markets
Internal labor market
External labor market
Labor market of experienced managers
Head manager
Head manager
Labor market of experienced assistant managers
Assistant manager
Assistant manager
Labor market of new college graduates
Team leader
Management trainee
31
Contemplating the Markets
  • Advantages of internal
  • Commitment
  • Stability
  • Consistency
  • Save on hiring
  • Advantages of external
  • Flexibility
  • Speed
  • Learn best practices
  • Save on retention

32
Internal Market Summary
  • The underlying theme
  • Use internal markets for jobs with lots of firm
    specific human capital
  • Use external markets for jobs with low levels of
    firm specific human capital
  • Important points to remember
  • There is no one best way to manage the
    internal/external labor market question
  • Most companies use internal markets for some
    jobs, external markets for others

33
Core or Flexible Workforce
  • Core workforce
  • Employees who add considerable value to the
    organization
  • Perform jobs that cannot be replaced
  • Hiring is long term and high commitment
  • Flexible workforce
  • Employees who perform peripheral functions that
    dont address the organizations strategic
    advantage
  • Hired through external firms or on a
    contingency/contract basis

34
Growth of the Temporary Employee Labor Market
35
The Logic of Prediction
Predictor Construct
Criterion Construct
Predictor Measure X
Criterion Measure Y
  • Predictor Some feature of the person you are
    hiring
  • Criterion Some organizationally relevant outcome
  • Construct Some outcome youd like to achieve
  • Measure The actual score you observe

36
The Logic of Prediction
Problem solving ability
Successful team leadership
Score on a test of IQ
Revenues from team projects
  • Problem solving ability is the predictor
    construct
  • IQ test score is an actual measure of PSA
  • Successful team leadership is the criterion
    construct
  • Revenues from projects is an actual measure of
    success

37
Challenges Arising from the Logic of Prediction
  • Developing a theory
  • What constructs should I examine?
  • Why do I think theyd be related?
  • Finding good measures
  • Do they capture the whole outcome?
  • Are they too difficult to collect?
  • Do they have any stability?
  • Proving relationships
  • Relationships between measures
  • Relationships between measures and constructs

38
Ways of Matching Fit with Organization, Group,
and Job
Organization
Culture and values Reward systems Authority/decisi
on making
Group
Job
Work preferences Personality Demography
Task requirements Rewards for this job Authority
for this job
39
Concepts Person/OrganizationMatch Model
  • Organizational culture and values
  • Norms of desirable attitudes and behaviors for
    employees
  • New job duties
  • Tasks that may be added to target job over time
  • And other duties as assigned . . .
  • Multiple jobs
  • Flexibility concerns - Hiring peoplewho could
    perform multiple jobs
  • Future jobs
  • Long-term matches during employment relationship

40
Major Cultural Dimensions of Organizations
Think about your own preferences for a minute and
how this might relate to your experiences in the
world of work.
41
Person-Organization FitWhy Does it Matter?
  • Employment relationship perspective
  • People accept jobs based on rewards
  • Employees are concerned mostly with meeting their
    desires
  • Values congruence indirectly affects need
    fulfillment through rewards offered and desired
  • Social identity perspective
  • People classify themselves based on group
    membership and wish to associate with groups that
    match their identity
  • Congruence is more important than need
    fulfillment
  • Research has shown that its not an either-or
    thing, both of these perspectives matter

42
Exh. 1.3 Person/Job Match
43
Concepts Person/Job Match Model
  • Jobs are characterized by their requirements and
    rewards
  • Individuals are characterized via qualifications
    (KSAOS) and motivation
  • Likely degree of fit between job characteristics
    and person
  • Implied consequences for every match
  • Concepts are not new
  • Matching process involves dual match
  • KSAOs to requirements
  • Motivation to rewards
  • Job requirements expressed in terms of both
  • Tasks involved
  • KSAOs necessary for performance of tasks
  • Job requirements often extend beyond task and
    KSAO requirements

44
Exh. 1.4 Person/Organization Match
45
Discussion Questions
  • Would it be desirable to hire people only
    according to the person/job match, ignoring the
    person/organization match? Why?
  • How are staffing activities influenced by
    training or compensation activities?

46
Job Analysis Tools to Improve Person-Job Fit
  • Job analysis the process of gathering
    information related to the activities performed
    on a job.
  • Job description The tasks and duties which are
    performed on the job.
  • Emptying all garbage cans on the 2nd floor
  • Coordinating meetings schedules
  • Developing a marketing strategy
  • Job specification The qualifications that are
    required to perform the job.
  • Knowledge of spreadsheet software programs
  • Skill in the repair of copiers
  • Ability to work cooperatively in small groups

47
What Do We Measure in Job Analysis?
  • Tasks, duties and responsibilities
  • The actual things that people do on the job
  • Objectively observable
  • KSAOs
  • Knowledge declarative (whats a spreadsheet)
  • Skills procedural (how do I run a spreadsheet)
  • Abilities capacity to develop new knowledge and
    skills
  • Other traits personality characteristics

48
Job Requirements Matrix
49
Competency-Based Job Analysis
  • Nature of competencies
  • an underlying characteristic of an individual
    that contributes to job or role performance and
    to organizational success
  • Usage reflects a desire to
  • connote job requirements that extend beyond the
    specific job itself
  • describe and measure the organizations workforce
    in more general terms
  • as a way of increasing staffing flexibility in
    job assignments

50
KSAOs or Competencies?
  • Similarities between competencies and KSAOs
  • Both reflect an underlying ability to perform a
    job
  • Differences between competencies and KSAOs
  • Competencies are much more general
  • May contribute to success on multiple jobs
  • Contribute not only to job performance but also
    to organizational success

51
Examples of Competencies
52
Organization Usage
  • Organizations are experimenting with
  • Developing competencies and competency models and
  • Using them as underpinnings of several HR
    applications
  • Three strategic HR reasons for doing competency
    modeling
  • Create awareness and understanding of need for
    change in business
  • Enhance skill levels of workforce
  • Improve teamwork and coordination
  • Emphasis -- Establishing general competencies

53
The Great Eight Competencies
  • Leading initiates action, gives direction
  • Supporting shows respect, puts people first
  • Presenting communicates and networks effectively
  • Analyzing thinks clearly, applies expertise
  • Creating thinks broadly, handles situations
    creatively
  • Organizing plans ahead, follows rules
  • Adapting responds to change, copes with setbacks
  • Performing focuses on results, shows
    understanding of organization

54
Discussion Questions
  • Would it be desirable to hire people only
    according to the person/job match, ignoring the
    person/organization match? Why?
  • Would it be desirable to hire people only
    according to the person/organization match,
    ignoring the person/job match? Why?

55
Introduction to the Course Casebook
  • Yes, I did write the case myself
  • Tanglewood department stores concept
  • Retail is a high visibility industry
  • The core problems are similar to most customer
    service companies face
  • You act as an external consultant with new and
    unique skills to offer them
  • All information will be posted on the web and
    updated regularly

56
Ethical Issues
  • Issue 1
  • As a staffing professional in the human resources
    department or as the hiring manager of a work
    unit, explain why it is so important to represent
    the organizations interests, and what are some
    possible consequences of not doing so?
  • Issue 2
  • One of the strategic staffing choices is whether
    to pursue workforce diversity actively or
    passively. First suggest some ethical reasons for
    the active pursuit of diversity, and then suggest
    some ethical reasons for a more passive approach.

57
For Next Time
  • Read the first case in the casebook
  • Answer questions regarding the company and its
    strategic staffing choices
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