Examples of Predicting Labor Demand for a
Hotel Chain with 25 Hotels
A
B
C
Number Ratio of Employees/
Projected 2003 Labor
of
Hotels (Calculated
Demand for 32 Hotels
Employees as Column A ÷25) (Calculated as Column B x 32)
Key Positions
25
General Manager
9
Resident Manager
Food/Beverage Dir. 23
25
Controller
14
Asst. Controller
24
Chief Engineer
25
Director of Sales
45
Sales Manager
14
Convention Mgr.
19
Catering Director
19
Banquet Manager
15
Personnel Director
49
Restaurant Mgr.
24
Executive Chef
24
Sous Chef
Exec. Housekeeper 25
379
Total
© 2001 by Prentice Hall
1.00
.36
.92
1.00
.56
.96
1.00
1.80
.56
.76
.76
.60
1.96
.96
.96
1.00
32
12
29
32
18
31
32
58
18
24
24
19
63
31
31
32
486
5-1
Examples of Predicting Labor Supply and
Required New Hires for a Hotel Chain
A
% Quit
Key Positions
General Manager
Resident Manager
Food/Beverage Dir.
Controller
Asst. Controller
Chief Engineer
Director of Sales
Sales Manager
Convention Mgr.
Catering Director
Banquet Manager
Personnel Director
Restaurant Mgr.
Executive Chef
Sous Chef
Exec. Housekeeper
Total
© 2001 by Prentice Hall
38
77
47
85
66
81
34
68
90
74
60
43
89
70
92
63
Supply Analysis
B
C
# of
Proj.
Present Turnover
Emp.
by 2003
25
9
23
25
14
24
25
45
14
19
19
15
49
24
24
25
379
10
7
11
21
9
16
9
30
13
14
12
6
44
17
22
16
257
Supply-Demand Comp.
D
E
F
Emp. Proj. Labor
Proj.
Left by
Demand New Hires
2003
in 2003
in 2003
15
2
12
4
5
8
16
15
1
5
7
9
5
7
2
9
122
32
12
29
32
18
31
32
58
18
24
24
19
63
31
31
32
486
17
10
17
28
13
23
16
43
17
19
17
10
58
24
29
23
364
5-2
Recruitment
Recruitment is the process of generating
a pool of qualified candidates for a
particular job. The firm must announce
the job’s availability to the market and
attract qualified candidates to apply. The
firm may seek applicants from inside the
organization, outside the organization,
or both.
© 2001 by Prentice Hall
5-3
Recruitment Sources
 Internal Sources

Faster, cheaper, more certainty
 External Sources

New ideas and approaches
 Direct applicants and referrals

Self-selection, low cost
 Newspaper advertising
 Public employment agencies

Blue-collar jobs
 Private employment agencies

White-collar jobs
 Colleges and Universities
 Online recruiting

Internet has transformed how U.S. Ers find and hire Ees – Internet
produced about half of all new hires in 2005 (includes Er’s web site,
general job boards, etc.) (Source: HRNews Online, 2/21/06)
© 2001 by Prentice Hall
5-4
Attributes Impacting Recruiter
Evaluations of MBA Programs
Attribute
% Very Important
Communication and interpersonal skills
89%
Ability to work well within a team
87
Personal ethics and integrity
86
Analytical and problem-solving skills
84
Work ethic
83
Fit with the corporate culture
75
Success w/ past hires
74
Leadership potential
73
– Source: Wall Street Journal, 9/20/06
© 2001 by Prentice Hall
5-5
Attributes Impacting Recruiter
Evaluations of MBA Programs
 “We need a combination of strong analytical and
interpersonal skills, plus an ability to cope with
ambiguity and remain composed in uncomfortable,
stressful situations. A key question for us is can the
candidate be comfortable working and
communicating with a range of people at the
company, from top executives down to assembly-line
workers?”
– Recruiter from Electronic Data Systems
 “Budding MBAs tend to be overly confident. [At USC]
our biggest single problem is convincing them they
don’t have the skills needed to communicate well in a
corporate environment.”
– Source: Wall Street Journal, 9/17/03
© 2001 by Prentice Hall
5-6
Selection
Selection is the process of making a
“hire” or “no hire” decision regarding
each applicant for a job. The process
typically involves determining the
characteristics required for effective job
performance and then measuring
applicants on those characteristics. The
characteristics required for effective job
performance are typically based on a job
analysis.
© 2001 by Prentice Hall
5-7
Selection Process
 Toyota staffing process for new Tundra truck
assembly plant near San Antonio

Plant initially employs ~1,800 production Ees


(Princeton plant staffed up to 4,300)
Over 100,000 applications expected

Not unusual for high paying world class manufacturing Co to
have 50+ applicants for every position
• Harley-Davidson’s new Kansas City plant hired 200 from 9,000 apps
• As of January 2002, TMMI had received 62,000 applications and hired
2,600


Ratio may be even greater for some staff positions
Visteon: Hired 7 percent of applicants, 2/3 failed test adding
fractions
© 2001 by Prentice Hall
5-8
“Inside the Head of an Applicant”
 89 of Fortune 100 use Myers-Briggs
Personality Type Indicator in hiring and
promoting
 Experts
concede test seems to capture
valid aspects of personality, but say it’s too
‘blunt’
 “Most
© 2001 by Prentice Hall
people are blends”
5-9
“Inside the Head of an Applicant”
 Minnesota Multiphasic Personality Inventory (MMPI)
widely used for substance abuse, other symptoms of
social maladjustment

Psychologists say test has value, but tends to flag otherwise
normal test takers as pathological (false positives)

60% of U.S. police depts use it, as do industries ranging from
banking to retail
• Note Target case (combination of MMPI and California Personality
Inventory)

In June 2005, 7th Circuit Court of Appeals ruled in class-action
suit that Rent-A-Center violated ADA by requiring applicants to
take MMPI – “likely had the effect of excluding employees with
(mental) disorders from promotions”
• In 1996, test measuring trustworthiness withstood claim against BorgWarner Protective Services, as judge ruled test was not medical
examination under ADA
© 2001 by Prentice Hall
5-10
“Inside the Head of an Applicant”
 More accurate generation of personality tests has
now hit market, derived from empirical studies about
how types of people behave in certain situations

Unlike MMPI, designed to measure normal personalities
 Scientists digging even deeper, focusing on genetic
and neural predictors of personality

Brain scans have shown people differ profoundly in their
brain ‘wiring’
 EEOC guidelines indicate er can use construct
validity studies as evidence that specific test
measures personality traits identified as important to
performance of specific job

Hiring consultants also recommend concurrent validation
– Source: Newsweek, 2/21/05; Workforce Management, 9/05
© 2001 by Prentice Hall
5-11
“Why I cut 48 resumes from a
stack of 62”
 OD consultant did first pass for client
 Took two hours (< 2 minutes per
resume)
 14 made cut (< 25%)
8
had no chance
 Other 40 could have made cut, but
applicants sabotaged their chances
© 2001 by Prentice Hall
5-12
“Why I cut 48 resumes from a
stack of 62”
 Why the might be’s became no’s
 Objective
didn’t fit position
Be sure objective aligns with available job
 May be better to leave off resume, address in cover letter

 Overly

favorable representation of themselves
“good communication skills” good, “extraordinarily skilled
communicator” may be overboard
 Resume
lacked sufficient information as to kind of
work done previously

Job titles wo/responsibilities problematic
 Typographical

errors
(McGuire’s “certified pubic accountant” candidate)
– Source: Roanoke Times & World News, 7/18/02
© 2001 by Prentice Hall
5-13
The Nine Don’ts of
Interviewing
 Don’t ask applicants if they have children, plan to have
children, or what child-care arrangements they have made.
 Don’t ask an applicant’s age.
 Don’t ask whether or not the candidate has a physical or
mental disability that would interfere with doing the job.
 Don’t ask for such identifying characteristics as height or
weight on an application.
 Don’t ask a female candidate for her maiden name.
 Don’t ask applicants about their citizenship.
 Don’t ask applicants about their arrest records.
 Don’t ask if a candidate smokes.
 Don’t ask a job candidate if he or she has AIDS or is HIVpositive.
© 2001 by Prentice Hall
5-14
Some Issues with The Nine
Don’ts
 Misleading to some extent and in some
instances wrong
 For example, even criminal convictions can
create adverse impact (see subsequent slide)
 Can lawfully refuse to employ smokers in
some states (not IL, IN, KY)
 Partridge presentation in ASBE 401 will
elucidate
© 2001 by Prentice Hall
5-15
Employment Inquiries and Privacy

Text statement that “privacy and discrimination laws
prohibit inquiries into an applicant’s personal, nonwork-related activities” (p. 174) is over-broad…


While EEOC guidelines encourage inquiries to be jobrelated…
No Constitutional right to privacy, except as created by US
SCt re: some governmental action (CA contrary)





© 2001 by Prentice Hall
E.g., 1965 case held that CT law prohibiting sale of
contraceptives was unconstitutional invasion of privacy (of
married persons); 2003 case held that TX law prohibiting sex
between persons of same sex was unconstitutional invasion
of privacy
Privacy Act regulates some governmental action
Discrimination laws prohibit discrimination on basis of
specified characteristics
There is the common law of torts (e.g., defamation)
Bottom line: questions that are invasive are not
necessarily unlawful (but may still result in litigation)
5-16
“For Some, Online Persona
Undermines Resume”
 When small Chicago consulting Co was looking to hire summer
intern, Co president went online to check on promising
candidate who had just graduated from U of Illinois

At Facebook, found web page that described candidate’s interests
as “smokin’ blunts,” shooting people, and obsessive sex, all
described in vivid slang


Candidate was done
“What kind of judgment does this person have?”
 Orgs looking for ‘red flags’
– Source: New York Times, 6/11/06
 USI mngt major, Jr., 3.1 GPA


Facebook picture shows student holding a beer with two beer cans
balanced on her head
Interests: “going to bars, drinking beer, drinking whiskey,
drinking any alcohol, partying with my friends, going to the
haute, beer pong, beer bonging, edward 40 hands, drinking
games with cards or any we make up randomly, so pretty
much anything that involves drinking”
© 2001 by Prentice Hall
5-17
“For Some, Online Persona
Undermines Resume”

According to survey of 3,100 Ers by CareerBuilder.com, 22% of hiring
Ers say they use Web sites such as Facebook and MySpace to
research job candidates


Of the respondents who used a social networking site to check
candidates, 34% said they found information that caused them to
remove candidate from consideration


Double the percentage in 2006
Candidate posted information about drinking or using drugs, provocative or
inappropriate pictures or information, poor communication skills, bad-mouthed
former Er or co-worker, used discriminatory remarks, screen name was
unprofessional, was linked to criminal behavior, revealed confidential information
about previous Ers
24% of hiring managers said they found content that gave candidate an
edge

Great communication skills, person was good fit for Co’s culture, personal site
illustrated professional image, showed wide range of interests, personal profile
was creative
–
© 2001 by Prentice Hall
Source: WorldatWork, 9/12/08
5-18
“As Background Checks Proliferate,
Ex-Cons Face a Lock on Jobs”
 More businesses using criminal-background checks
to guard against negligent-hiring lawsuits, theft of
company assets, even terrorism


About 80% of big Ers in U.S. now do such checks (up from
56% in 1996)
Some 630,000 people get out of state and federal prisons
each year w/ criminal records

Almost 30% of adult Americans had state criminal arrest record
in 2003
 Ethical and legal implications

Minorities in particular could experience adverse impact


Black males incarcerated at five times rate of white males,
Hispanics two times
Blacks w/ criminal records pay bigger penalty in job market (see
research cited in Understanding Equal Opportunity and the
Legal Environment)
– Source: Wall Street Journal, 8/26/04; MSNBC.com, 8/14/05
© 2001 by Prentice Hall
5-19
Reference Checking
 36 states (including IN) have laws that grant
ers some form of civil immunity when they
disclose information about current or past ee
in response to request for reference
 But,
suggested that many state laws contain
loopholes that plaintiff lawyers can attack when
pursuing defamation lawsuit
 Although truth is a defense, ers must still be
careful about what information is provided and
how

There is both a duty to be accurate and a duty not to
misrepresent information
– Source: HR News, 6/24/05
© 2001 by Prentice Hall
5-20