Title: If employers want to go the astrology route, they need
1Staffing Organizations
- Prof. John Kammeyer-Mueller
- MGT 6366
2Staffing
- 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
3Goals 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.
4A 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.
5Science 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)
6Science 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)
7Just 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
8Just 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
9Another 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
10Just how bad is staffing in some companies?
11Just how bad is staffing in some companies?
12Just how bad is staffing in some companies?
13HR 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
14A 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
15Staffing 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
16Staffing 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)
17Staffing 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
18Discussion 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
19Nature 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
20Changes 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
21The Staffing Components Model
Applicant (person)
Organization (job)
Recruitment (identification and attraction)
Selection (assessment and evaluation)
Employment (decision making and match)
22Staffing 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?
23Staffing 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
24Staffing 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
25Staffing 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
26Staffing 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
27Exh. 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
28Components 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
29HR 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
30Images 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
31Contemplating the Markets
- Advantages of internal
- Commitment
- Stability
- Consistency
- Save on hiring
- Advantages of external
- Flexibility
- Speed
- Learn best practices
- Save on retention
32Internal 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
33Core 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
34Growth of the Temporary Employee Labor Market
35The 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
36The 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
37Challenges 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
38Ways 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
39Concepts 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
40Major 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.
41Person-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
42Exh. 1.3 Person/Job Match
43Concepts 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
44Exh. 1.4 Person/Organization Match
45Discussion 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?
46Job 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
47What 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
48Job Requirements Matrix
49Competency-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
50KSAOs 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
51Examples of Competencies
52Organization 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
53The 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
54Discussion 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?
55Introduction 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
56Ethical 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.
57For Next Time
- Read the first case in the casebook
- Answer questions regarding the company and its
strategic staffing choices