5 © 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama X Chapter Objectives After studying this chapter, you should be able to Explain the advantages and disadvantages of external recruitment. Explain the advantages and disadvantages of recruiting from within the organization. Discuss how job opportunities can be inventoried and employee potential assessed. Explain how career management programs integrate the needs of individual employees and their organizations. Describe the conditions that help make a career management program successful. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–2 X Chapter Objectives (cont’d) After studying this chapter, you should be able to Explain why diverse recruitment and career development activities are important to companies. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–3 Recruiting Talent Externally • Labor Market Area from which applicants are to be recruited. Tight market: high employment, few available workers Loose market: low employment, many available workers • Factors determining the relevant labor market: Skills and knowledge required for a job Level of compensation offered for a job Reluctance of job seekers to relocate Ease of commuting to workplace Location of job (urban or nonurban) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–4 1 Marriott’s Recruitment Principles 1. Get It Right the First Time • Hire friendly, train technical 2. Money Is a Big Thing, But . . . • Work-life balance, leadership, advancement 3. A Caring Workplace Is a Bottom-Line Issue • 15 minutes/day reviewing basic values 4. Promote from Within • Passing soul of it’s business—corporate culture 5. Build the Employment Brand • Take care of associates and they will take care of customers! © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–5 Outside Sources of Recruitment • Advertisements • Labor unions • Unsolicited applications and resumes • Public employment agencies • Internet recruiting • Private and temporary employment agencies • Employee referrals • Employee leasing • Executive search firms • Educational institutions • Professional associations •Employers with great reputations don’t have to advertise much. •In US, unemployed must apply for jobs every week to draw pay— whether qualified or not. •HR gets loads of resumes for every decent position. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–6 Increasing the Effectiveness of Employee Referrals Employee referrals is the most effective source for recruitment (关系, guānxi, networking/relationships) • Up the ante. • Pay for performance. • Tailor the program. • Increase visibility. • Keep the data. • Rethink your taboos. • Widen the program. • Measure the results. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–7 FIGURE 5.1 Steps for Strengthening a Firm’s On-Campus Recruiting Relationships • Invite professors and advisers to visit your office and take them to lunch. • Invite them to bring a student group to the office. • Send press releases and newsletters by mail or e-mail to bring them up to date on the firm’s latest news and innovations. • Provide guest speakers for classes. • Conduct mock interviews, especially in years when not interviewing for full-time or internship positions. • Provide scholarships to students. • Attend the campus career fair, even when the firm is not going to be hiring, so that its name becomes known by the faculty and students. • Offer job-shadowing programs for students. • Provide tutors from your company. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–8 X FIGURE 5.2 Largest Temporary Help Agencies in the United States © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–9 The Global Labor Market • Why Recruit Globally? To develop better products via a global workforce To attract the best talent wherever it may be • International Recruiting Issues Local, national, and international laws Different labor costs Different preemployment and compensation practices Cultural differences Security Visas and work permits © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–10 X Improving the Effectiveness of External Recruitment Calculate Yield Ratios Training Recruiters External Recruitment Realistic Job Previews © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–11 External Recruitment Considerations • Yield Ratio Percentage of applicants from a recruitment source that make it to the next stage of the selection process. 100 resumes received, 50 found acceptable = 50% yield. • Cost of Recruitment (per employee hired) SC AC AF RB NC H H SC AC AF RB NC H = source cost = advertising costs, total monthly expenditure (example: $32,000) = agency fees, total for the month (example: $21,000) = referral bonuses, total paid (example: $2,600) = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0) = total hires (example: 119) Cost to hire one employee = $467.23 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–12 External Recruitment Considerations (cont’d) • Sources of Organizational Recruiters Professional HR recruiters HR generalists Work team members • Requirements for Effective Recruiters Knowledge of the recruited job’s requirements and of the organization Training as an interviewer Personable and competent to represent the organization © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–13 Improving the Effectiveness of External Recruitment (cont’d) • Realistic Job Previews (RJP) Informing applicants about all aspects of the job, including both its desirable and undesirable facets. Positive benefits of RJP Improved employee job satisfaction Reduced voluntary turnover Enhanced communication through honesty and openness Realistic job expectations In job interview, the organization is interviewing the applicant, but the applicant should also be interviewing the corporation—both directions looking for “fit” © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–14 FIGURE 5.3 Warning Signs of a Weak Talent “Bench” 1. It takes a long time to fill key positions. 2. Key positions can be filled only by hiring from the outside. 3. Vacancies in key positions cannot be filled with confidence in the abilities of those chosen for them. 4. Replacements for positions often are unsuccessful in performing their new duties. 5. Promotions are made on the basis of whim, favoritism, or nepotism. All of this may be caused by lack of initiative by the hiring manager. No planning, no training, no mentoring, no foresight, etc. What do you do if you find two qualified people for critical jobs? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–15 Recruiting Talent Internally • Advantages of a promotion-from-within policy: Capitalizes on past investments (recruiting, selecting, training, and developing) in current employees. Rewards past performance and encourages continued commitment to the organization. Signals to employees that similar efforts by them will lead to promotion. Fosters advancement of members of protected classes within an organization. (May be a huge legal advantage.) Culture continuation. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–16 Recruiting Talent Internally (cont’d) • Disadvantages of a promotion-from-within policy: Current employees may lack the knowledge, experience or skills needed for placement in the vacant/new position. This is a hiring manager problem. The hazards of inbreeding of ideas and attitudes (“employee cloning”) increase when no outsiders are considered for hiring. Can be avoided by effective leaders and managers. The organization has exhausted its supply of viable internal candidates and must seek additional employees in the external job market. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–17 Methods for Identifying Qualified Candidates • Inventorying Management Talent Information systems containing skills inventories of employees that can be used: To screen candidates for an internal job opening To predict career paths To support succession planning • Job Posting and Bidding Posting vacancy notices and maintaining lists of employees looking for upgraded positions. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–18 Identifying Talent through Performance Appraisals • Managers are concerned about the actual current performance and potential performance of employees. • 9-box Grid A comparative diagram that includes appraisal and assessment data to allow managers to easily see an employee’s actual and potential performance. • Tough to do because performance appraisals are rarely realistic. Employees want to know how they did Employers want to know how they will do in the future © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–19 XFIGURE 5.4 An Example of a 9-Box Grid © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–20 Using Assessment Centers • Assessment Center A process by which individuals are evaluated as they participate in a series of situations that resemble what they might be called on to handle on the job. In-basket exercises Leaderless group discussions Role playing Behavioral interviews © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–21 X The Career Management Goal: Matching Individual and Organizational Needs The Employee’s Role The Organization’s Role Career Management Individual and Organizational Goals © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–22 XFIGURE 5.5 HR’s Role in Career Management © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–23 The Organization’s Role: Establishing a Favorable Career Development Climate • Management Participation Provide top management support Provide collaboration between line managers and HR managers Train management personnel Not designing career plans for employees © 2010 South-Western, a part of Cengage Learning. All rights reserved. • Setting Goals Plan human resources strategy • Changing HR Policies Provide for job rotation Provide outplacement service • Announcing the Program Explain its philosophy 5–24 FIGURE 5.6 Balancing Individual and Organizational Needs “Linking” is probably a better word than “Balancing” © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–25 Identifying Career Opportunities and Requirements • Competency Analysis Measures three basic competencies for each job: know-how, problem solving, and accountability. • Job Progressions The hierarchy of jobs a new employee might experience, ranging from a starting job to jobs that require more knowledge and/or skill. • Career Paths Lines of advancement in an occupational field within an organization. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–26 X FIGURE 5.7 Typical Line of Advancement in HR Management © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–27 X 2 Career Path of Jeffrey Immelt, CEO, General Electric 1982 Enters GE’s Commercial Leadership Program 1983 Manager of Business Development/GTX Product Management, GE Plastics 1984 Manager of Dallas District Sales, GE Plastics 1986 General Manager of Western Region Sales, GE Plastics 1987 General Manager of New Business Development and Marketing Development, GE Plastics 1989 Vice President of Consumer Service, GE Appliances 1991 Vice President of Worldwide Marketing and Product Management, GE Appliances 1992 Vice President of Commercial Division, GE Plastics Americas 1993 Vice President and General Manager, GE Plastics Americas 1997 President and CEO, GE Medical Systems 2000 President, GE 2001 CEO, GE © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–28 Recognize Lots of Possibilities for Career Development • Promotion A change of assignment to a job at a higher level in the organization. Principal criteria for determining promotions are merit, seniority, and potential. “Potential” should be far more important than “merit” or “seniority.” • Transfer The placement of an individual in another job for which the duties, responsibilities, status, and remuneration are approximately equal to those of the previous job. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–29 Alternative Career Moves Promotion Exit Career Moves Transfer Demotion All of these may be good for both the organization and the individual depending on the long-term plan! © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–30 Career Change Organizational Assistance • Relocation services Services provided to an employee who is transferred to a new location: Help in moving, in selling a home, in orienting to a new culture, and/or in learning a new language. • Outplacement services Services provided by organizations to help terminated employees find a new job. How you treat displaced employees will have a profound effect on those employees who remain. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–31 X FIGURE 5.8 Human Capital Profiles for Two Different Careers © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–32 XFIGURE 5.9 Stages of Career Development © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–33 The Plateauing Trap • Career Plateau (高原, gāoyuán) Situation in which for either organizational or personal reasons the probability of moving up the career ladder is low. • Types of Plateaus Structural plateau: end of advancement Content plateau: lack of challenge Life plateau: crisis of personal identity • Managers must keep a close eye on productivity and psychological impression on others of “plateaued” employees! © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–34 FIGURE 5.10 Career Plateau Questions 1. Do I accept high visibility assignments? 2. Do I continue to advance my education, both formal and vocational? 3. Am I recognized by other leaders in my organization? 4. Am I routinely promoted? 5. Am I known as a versatile employee? 6. Do I continue to get larger-than-normal raises? 7. Do I rate at the high end of the performance ratings? 8. Do I have a plan with measurable objectives, and have I updated it recently? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–35 Successful Career-Management Practices • • • • Placing clear expectations on employees. Giving employees the opportunity for transfer. Providing a clear and thorough succession plan Encouraging performance through rewards and recognition. • Giving employees the time and resources they need to consider short- and long-term career goals. • Encouraging employees to continually assess their skills and career direction. Who does this??? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–36 Internal Barriers to Career Advancement • Lack of time, budgets, and resources for employees to plan their careers and to undertake training and development. • Rigid job specifications, lack of leadership support for career management, and a shortterm focus. • Lack of career opportunities and pathways within the organization for employees. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–37 Career Development Initiatives: Developing Talent over Time • Career Planning Workbooks Stimulate thinking about careers, strengths/limitations, development needs • Career Planning Workshops Discuss and compare attitudes, concerns, plans • Career Counseling Discuss job, career interests, goals © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–38 Determining Individual Development Needs • Fast-track Program A program that encourages young managers with high potential to remain with an organization by enabling them to advance more rapidly than those with less potential. • Career Self-Management Training Helping employees learn to continuously gather feedback and information about their careers. Encouraging them to prepare for mobility. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–39 Mentoring • Mentors Executives who coach, advise, and encourage individuals of lesser rank. Often “grooming” for advancement. • Mentoring functions Functions concerned with the career advancement and psychological aspects of the person being mentored. • E-mentoring Brings experienced business professionals together with individuals needing counseling. • Official or unofficial • Show reality of the organization. • Tough on women. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–40 FIGURE 5.12 Mentoring Functions © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–41 Forming a Mentoring Relationship 1. Research the mentor’s background. 2. Make contact with the mentor. 3. Request help on a particular matter. 4. Consider what you can offer in exchange. 5. Arrange a meeting. 6. Follow up. 7. Ask to meet on an ongoing basis. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–42 Career Networking Contacts • Your college alumni association or career office networking lists • Your own extended family • Your friends’ parents and other family members • Your professors, advisors, coaches, tutors, clergy • Your former bosses and your friends’ and family members’ bosses • Members of clubs, religious groups, and other organizations to which you belong • All of the organizations near where you live or go to school • (关系, guānxi, networking/relationship) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–43 Career Advice based on Luthans’ Research Bert: “Successful” is not the same as “effective”. For promotion, it comes down to who you know—networking (关系, guānxi). Source: Based on F. Luthans, R.M. Hodgetts, and S.A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988). 1–44 Developing a Diverse Talent Pool • Recruiting and Developing Women Growth of women in the workplace Increase in females in management roles Stereotyping and gender conflicts • Recruitment of Minorities Educational and societal disadvantages Retention in organizations Affirmative action © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–45 Recruitment and Development of Women • The “Glass Ceiling” Artificial barriers based on attitudinal or organizational bias that prevent qualified women from advancing upward in their organizations into management level positions. • Eliminating Women’s Barriers to Advancement Development of women’s networks Online e-mentoring for women Diminishing stereotyping of women Presence of women in significant managerial positions Accommodating families © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–46 International Push for Female Executives • Norway—40% of board members in major companies are women Mandated by 2002 law One study shows stock drop, but may be due to lack of experience rather than gender • Spain requires that by 2015 40% of board members be female • Italy, France, and Belgium considering similar laws • In US, only 15% of board members at top companies are female Studies show those companies are doing better Unlikely to establish quotas • 9.7% in European Union • <5% in Asia © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–47 Glass-Ceiling Audits • Glass ceiling audit factors: Upper-level management and executive training Rotational assignments International assignments Opportunities for promotion Opportunities for executive development programs at universities Desirable compensation packages Opportunities to participate on high-profile project teams Upper-level special assignments © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–48 Recruiting and Developing of Minorities • Career development for minorities is advanced by: Organizational support for the advancement of minorities to significant management positions Provision of internships to attract minorities to management careers Organization of training courses to foster the development of minority’s managerial skills and knowledge. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–49 Other Important Talent Concerns • Recruitment of the Disabled Increasing numbers of disabled in the workforce Stereotyping of the disabled versus their superior records for dependability, attendance, motivation and performance Accommodations for physical and mental disabilities Others with less publicized disadvantages • Recruitment of Older People Increasingly returning to the workplace Have valued knowledge, experience, flexibility and reliability as employees © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–50 Dual-Career Couples • Dual-Career Partnerships Couples in which both members follow their own careers and actively support each other’s career development. Flexible work schedules Adaptive leave policies Work-at-home On-premises day care Job sharing © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–51 Retention in China • Employee turnover for international companies operating in China is very high (20-30%) No reason for loyalty to new companies Opportunities are plentiful for trained, experienced employees • International companies need a good strong reputation as great employers Working environment, policy, and procedures Internal promotions, professional career development Pay and benefits Values © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–52 assessment center mentors career counseling nepotism career networking 9-box grid career paths outplacement services career plateau promotion dual career partnerships realistic job preview (RJP) employee leasing relocation services fast-track program transfer job posting and bidding yield ratio job progressions © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–53 Discussion Questions (page 234) •#5 Why leave an organization for career advancement? •#7 Explain value of Realistic Job Previews •#8 What are advantages/disadvantages of hiring internally? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–54 Case Study •Page 236, #1 Nike Hiring Technology •Page 242, Caterpillar Career Competencies © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–55 Team Assignment (page 235) •Interview each other on career goals from early stages to present then to future goals. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–56 X FIGURE 5.A1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–57 X FIGURE 5.A2 Twelve Steps for Starting a New Business © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5–58