CHAPTER 8: STAFFING Copyright © 2005 South-Western. All rights reserved. Staffing • Staffing – Process of recruiting and selecting prospective employees – Has significant impact on organization’s bottom line • Requires staffing process to become strategically focused – Recruitment and selection activities offer organization numerous choices to find and select new employees – Staffing decisions need to ensure that employees fit the organization’s culture Copyright © 2005 South-Western. All rights reserved. 1–2 Recruiting • Temporary versus permanent employees – Increase headcount temporarily or permanently should be strategically-driven – Basis for decisions is HR forecast – Temporary employees less costly – Temporary headcount increases can be obtained from specialized agencies – Headcount increases can be avoided by subcontracting work Copyright © 2005 South-Western. All rights reserved. 1–3 Exhibit 8-1 Advantages and Disadvantages of Internal and External Recruiting Copyright © 2005 South-Western. All rights reserved. 1–4 Recruiting • When and how to recruit extensively: – When do recruiting efforts need to begin? – How large an applicant pool needed? – Data from past recruiting efforts utilized • To answer questions where feasible • Adjust for changed conditions • Yield ratios – Offer information on how many applicants eliminated/remain at each step in recruitment process – Can determine proper or necessary size of applicant pool Copyright © 2005 South-Western. All rights reserved. 1–5 Exhibit 8-2 Recruiting Pyramid Copyright © 2005 South-Western. All rights reserved. 1–6 Exhibit 8-3 Recruiting Timeline Copyright © 2005 South-Western. All rights reserved. 1–7 Methods of Recruiting • Informally or formally • Internally or externally • Targeted advertising in selected media • Recruiting on Internet • Outsourcing to staffing agencies • Private Industry Councils (PICs) • Executive search firms • On-campus recruiting Copyright © 2005 South-Western. All rights reserved. 1–8 Recruiting on Internet • One of the fastest-growing recruitment methods • More cost-effective than newspaper advertising • Low cost, speed, and ability to target applicants with technical skills • Allows applicants to assess interests and needs with employer’s offerings • Global exposure to potential applicants • Can cut search process time by as much as 75% – Question: Disadvantages? Copyright © 2005 South-Western. All rights reserved. 1–9 Recruiting on the Internet • Some potential challenges – Ensuring security – Viruses – Access to unauthorized areas – Concerns about disparate impact against certain protected classes – Can complicate reporting of data related to compliance with federal and state laws Copyright © 2005 South-Western. All rights reserved. 1–10 Selection Process Issues • Reliability – Consistency of measurement – Screening criteria should elicit same results in repeated trials across time and evaluators – Reliability influenced by criterion deficiency and contamination errors – Reliability is prerequisite for validity Copyright © 2005 South-Western. All rights reserved. 1–11 Selection Process Issues • Validity – Degree to which what is assessed is related to actual performance – Ability to establish job-related validity is crucial to employers in defending themselves in discrimination allegations – Content validity illustrates that measure or criterion is representative of actual job content or knowledge – Criterion-related (empirical) validity demonstrated by relationship between screening criteria and job performance Copyright © 2005 South-Western. All rights reserved. 1–12 Interviewing Process Issues • Who should be involved? – Prospective supervisors, peers, subordinates • Which interview format? – Individual or group interviews – Situational versus behavioral/experienced-based • Common interviewer errors – Similarity errors – Contrast errors – First impression – Halo errors – Personal biases Copyright © 2005 South-Western. All rights reserved. 1–13 Behavioral Interviewing • Used with experienced and inexperienced applicants • Asks about situations candidate is likely to face on job • Candidates can present real-life situations they were involved in, and how they handled them Copyright © 2005 South-Western. All rights reserved. 1–14 Testing • Work sample tests – Ask applicant to complete representative sample of actual work • Trainability tests – Measure • Aptitude in certain areas • Ability to understand critical job components that firm will teach new hires Copyright © 2005 South-Western. All rights reserved. 1–15 Testing • Realistic job previews – Make applicants aware of both positive and negative aspects of job – Decrease likelihood new employees will become dissatisfied – Increase likelihood of candidate’s self-selecting out of position • Personality testing – Used in an effort to anticipate how applicants might behave, if hired Copyright © 2005 South-Western. All rights reserved. 1–16 Exhibit 8-4 The Big Five Personality Dimensions Personality Dimension Characteristics of Person Scoring Positively on Dimension 1) Extraversion Outgoing, talkative, social, assertive 2) Agreeableness Trusting, good-natured, cooperative, soft-hearted 3) Conscientiousness Dependable, responsible, achievement-oriented, persistent 4) Emotional stability Relaxed, secure, unworried 5) Openness to experience Intellectual, imaginative, curious, broad-minded Copyright © 2005 South-Western. All rights reserved. 1–17 Other Testing Methods • Personality testing – Useful to anticipate how applicants likely to behave – Few, if any, jobs require specific personality type – Have been successfully challenged in court • Physical testing – Restricted under ADA to testing only for specific critical job-related physical performance requirements Copyright © 2005 South-Western. All rights reserved. 1–18 Other Testing Methods • Honesty testing – Polygraph testing has declined since passage of Employee Polygraph Protection Act in 1988 – Paper-and pencil tests have increased greatly • Drug testing – Challenged in courts as an invasion of privacy • References – Little information available due to former employer fears of liability for libel, slander and defamation Copyright © 2005 South-Western. All rights reserved. 1–19 WI Statutes, Chapter 895.487 Civil liability exemption; employment references 1(c) "Reference" means a statement about an employee's job performance or qualifications for employment and includes a statement about an employee's job performance or qualifications for employment provided pursuant to the settlement of a dispute between the employer and employee or provided pursuant to an agreement between the employer and employee relating to the termination of the employee's employment. 2 An employer who, on the request of an employee or a prospective employer of the employee, provides a reference to that prospective employer is presumed to be acting in good faith and, unless lack of good faith is shown by clear and convincing evidence, is immune from all civil liability that may result from providing that reference. The presumption of good faith under this subsection may be rebutted only upon a showing by clear and convincing evidence that the employer knowingly provided false information in the reference, that the employer made the reference maliciously or that the employer made the reference in violation of s. 111.322. Source: http://www.legis.state.wi.us/rsb/Statutes.html Copyright © 2005 South-Western. All rights reserved. 1–20 Selection for International Assignments • Reasons for failure on international assignments – Interpersonal and acculturation abilities – Often not based on technical skills • Test employees’ adaptability, openmindedness, ability to tolerate uncertainty, ambiguity, and independence • Interview and screen family members who would accompany employee (carefully!) Copyright © 2005 South-Western. All rights reserved. 1–21 Exhibit 8-4 Strategic Issues in Staffing Copyright © 2005 South-Western. All rights reserved. 1–22 Reading 8.1 (Bowen et al.) Hiring for Organization, Not Job • New model of selection geared toward hiring “whole” person who fits into organization’s culture • “Strong situation” – Intensity of situation suppresses variation in behavior attributable to person • “Weak situation” – Allows range of employee responses to work requirements • In organizations that are “weak situations” – More important to do good job of hiring right people Copyright © 2005 South-Western. All rights reserved. 1–23 Reading 8.1 Hiring Process for Person-Organization Fit • Assess overall work environment – Job analysis – Organizational analysis • Infer type of person required – – – – Technical knowledge, skills and abilities Social skills Personal needs, values and interests Personality traits Copyright © 2005 South-Western. All rights reserved. 1–24 Reading 8.1 Hiring Process for Person-Organization Fit • Design “rites of passage” for organization entry that allow both organization and applicant to assess their fit – – – – Tests of cognitive, motor and interpersonal abilities Interviews by potential coworkers and others Personality tests Realistic job previews, including work samples • Reinforce person-organization fit at work – Reinforce skills and knowledge through task design and training – Reinforce personal orientation through organization design Copyright © 2005 South-Western. All rights reserved. 1–25 Reading 8.1 Potential Benefits & Problems with Hiring for Person-Organization Fit • Potential benefits – More favorable employee attitudes – More desirable individual behaviors – Reinforcement of organizational design • Potential problems – Greater investment of resources in hiring process – Relatively undeveloped & unproven supporting selection technology – May be difficult to use full model where payoffs are greatest – Lack of organizational adaptation Copyright © 2005 South-Western. All rights reserved. 1–26 Reading 8.2 (Insch & Daniels) Reasons for Expatriate Early Departure • • • • • • • • • • • Not performing job effectively Received other, more rewarding offer (other co.) Expatriate or family not adjusting Expatriate or family missing home Received more rewarding offer (current co.) Unable to adjust to deprived living standards Concerned with problems of safety & health Believed children’s education was suffering Feared assignment would slow career advance Spouse wanted career Compensation package inadequate Copyright © 2005 South-Western. All rights reserved. 48.4% 43.7% 36.6% 31.0% 17.2% 10.3% 10.3% 7.1% 7.1% 6.1% 0.0% 1–27 Reading 8.3 (Wiechmann et al.) Frequently Mentioned Obstacles to Global Staffing System • Legal requirements across countries/regions • Education system across countries/regions • Economic conditions across countries/regions • Ability to acquire & use technology • Labor market variations • Value differences across cultures • Availability of off-the-shelf translated tools Copyright © 2005 South-Western. All rights reserved. • Level of HR experience varies across regions • Role of HR in hiring varies across regions • Familiarity with a tool or practice varies • Misperceptions that something is a cultural difference • Limited local resources for implementation • Beliefs about whether a global system is US-centric or imposed 1–28 Reading 8.3 Frequently Mentioned Benefits to Global Staffing System • Global database of qualified talent • Global succession planning is enabled • Quick identification of candidates to meet needs of specific location • Global HR personnel have access to the latest versions of products/tools • Provision of consistent message about company to candidates worldwide • Shared vision of HR globally • Quality of all hires is ensured • Global database as internal benchmark of achievement in different parts of world • Better understanding of country/regional needs by all HR Copyright © 2005 South-Western. All rights reserved. • Comparisons of staffing results across locations 1–29