Human Resource Staffing and Performance Management MANA 5341 Dr. George Benson benson@uta.edu Human Resource Management Employee Relations Compensation Performance Management Planning and Job Design Recruiting and Selection Training and Development HR Staffing Legal Compliance Determining HR needs Projecting staffing levels Job analyses Managing competencies Identifying and recruiting employees Evaluating candidates Selection tests Interviewing Managing retention Performance Management Performance management systems Timing, forms, and outcomes Managing for employee motivation Goal setting Pay for performance Providing performance feedback Corporate Strategy Simplified 1. Core Competencies “An area of specialized expertise” C.K. Prahalad and Gary Hamel (1990) Harvard Business Review Competitive advantage Something you do better than competitors 2. Efficiency vs. Innovation Differentiation Cost Leadership Better Products Cheaper Prices Staffing and Strategy Performance requires HR practices that: Match the business strategy Are internally consistent Fit with organizational values and beliefs Some Examples: Self-managed teams (e.g. Whole Foods) Talent acquisition (e.g. Cisco, Texas Instruments) Rapid expansion (e.g. Starbucks) Low cost (e.g. Wal-Mart) Staffing and Performance Labor is the single most significant cost of doing business: payroll and replacement costs. Business strategies require specific skills and behaviors to be successful. Employees provide customer service, create value, and execute strategy. HR practices can be crafted to support certain types of skills and encourage behaviors. “How do we hire the right people?” “How do we hire the right people?” Job Requirements Rewards Match Person KSA’s Motivation Traditionally staffing has focused on the match between an applicants skills and experience and the job requirements. Person/Job Match Job HR Outcomes Requirements Rewards Match Person KSA’s Motivation Impact Performance Extra Effort Retention Satisfaction Commitment Task Flexibility Job Requirements Rewards Career Progression Values/Culture Organization Person/ Organization Match Match Person KSA’s Motivation ATTITUDE Impact HR Outcomes Performance Extra Effort Retention Satisfaction Commitment Southwest Airlines Southwest Airlines Recruiters speak in the same near-spiritual terms. What's he looking for in a candidate? "An attitude -- a genuineness -- a sense of what it takes to be one of us." “It takes a special individual to become a Customer Service Agent, and we look for folks who are eager, who are “quick on their feet” with “outside the box” thinking and who have caring, friendly natures. Because we operate almost around the clock (including holidays), Customer Service Agents work unusual hours and are on their feet eight hours a day. Yet, almost all of these Employees will tell you how much they LUV their jobs.” Colleen Barrett President and Chief Operating Officer Wanted: Customer Service Agent 1. Submit a resume. 2. Attend a Group Information/Screening Session. 3. Attend a one-on-one interview & complete an application. 4. Background check. 5. Drug screening. 6. Job offer - Start date determined Training scheduled. "Coat of Arms" Applicants fill out and read aloud a questionnaire in which applicants complete statements such as: • One time my sense of humor helped me was….. • A time I reached my peak performance was……. • My personal motto is…… “Fallout Shelter” Applicants are told to imagine they are a committee charged with rebuilding civilization after a just-declared nuclear war. They're given a list of 15 people from different occupations: nurse, teacher, allsport athlete, biochemist, pop singer. They have 10 minutes to make a unanimous decision about which 7 can remain in the only available fallout shelter. “Fallout Shelter” The answers don’t matter.... The test is about the interaction... As the candidates debate, evaluators watch from across the room and grade each person on a scale from "passive" to "active" to "leader." Support Business Strategy Southwest’s reputation for service and “Fun Place to Work” • More than 34,000 total Employees • Southwest received 202,357 resumes and hired 908 new Employees in 2003 • Hires about .5% of applicants – that is they hire 4.4 per 1000 applicants. Become a SWA Customer Service Agent? • All SWA Employees and their family members have FREE UNLIMITED travel anywhere Southwest Airlines flies! • As a SWA Employee you will receive Profit Sharing . . . and Southwest Airlines has had 31 consecutive years of profit! • FABULOUS Medical, Dental and Vision plans for all Employees! Dollar for dollar match in 401K - up to 7.3%! • Casual uniform environment, which means you can wear tennis shoes! • The Southwest Airlines University offers Career Development classes! • Chili Cookoffs, Holiday Celebrations, Deck Parties, Golf Tournaments and more for all SWA Employees and their family members. Entry Level Jobs at SWA Customer Service Agents First Year $9.00/hr Second Year $10.00/hr Flight Attendants 1st 6 Months $14.67/Trip* 2nd 6 Months $14.90/Trip* 2nd Year $17.34/Trip* *one trip = 243 miles Results • 31 consecutive profitable years. • Southwest has ranked number one in fewest Customer complaints for the last 13 consecutive years as published in the DoT’s Air Travel Consumer Report. • Among all industries in 2003, FORTUNE has listed Southwest Airlines as number two among America’s Top Ten most admired corporations. • According to the April 2003 issue of FORTUNE, Southwest is an employer of choice among college students. Southwest’s HRM Practices • • • • • • Employment Security Selectivity in Recruiting Incentive pay Employee Ownership Information Sharing Participation & Ownership • Self-Managed Teams • Training & Development • Cross-Utilization & Cross-Training • Symbolic Egalitarianism • Wage Compression • Promotion From Within • Taking the Long View • Measurement of Practice • Overall Philosophy Staffing, Strategy and Performance Value at Southwest Airlines is: 1. Created through satisfaction of employee needs. 2. Converted to customer and share holder value via organizational capabilities (the design of specific operating processes). 3. Captured by SWA as competitive advantage through lower costs and superior service (productivity) in relation to its competitors. Staffing and Strategy Performance requires HR practices that: Match the business strategy Are internally consistent Fit with organizational values and beliefs HR Alignment Employee Relations Planning and Job Design INTERNAL FIT Compensation Performance Management Recruiting and Selection Training and Development Next week….. Legal Compliance HRS Chapter 2 DOL Chapter 2