Staffing
Chapters 1 – 4
Chapter 1 – The Nature of Staffing

The Big Picture
 55%
of all worksites are fewer than 100
employees
 Total costs for employees is 25% of an
organization’s revenue
Chapter 1 – The Nature of Staffing

Valuing Human Capital
 Human
capital is intangible, but value can be
estimated:
 Organization’s
Stock value – Organization’s
tangible assets ($) = Human Capital Value
Chapter 1 – The Nature of Staffing

Staffing
 Process
of acquiring, deploying and retaining
a workforce of sufficient quantity and quality to
create positive impacts on the organization’s
effectiveness
The Nature of Staffing

Acquire – planning for positions, recruiting,
selection, etc.

Deploy – placing new hires into jobs

Retention – manage flow of employees out
of the organization
The Nature of Staffing

Work with your team members to
complete the case “Staffing your own job”
on page 33.
The Nature of Staffing

Staffing Models
– concerned with positions and
requirements
 Quantity
– concerned with aligning individuals
with jobs (person/job match) or organizations
(person/organization match)
 Quality
The Nature of Staffing

Staffing Models
 Quantity

Projected staffing requirements compared to
projected staffing availabilities

Determine overstaffing, understaffing or fully
staffed
The Nature of Staffing

Staffing Models
 Quality

Job, organizational values, all possible jobs now
and in the future

Person (KSAOs, motivation)

To attain HR outcomes: attraction, performance,
retention, attendance, satisfaction, etc.
The Nature of Staffing

Strategic Decisions in Staffing (Exhibit 1.7)
 Levels
Aquire v. Develop
 Lag v. Lead

 Quality
Person/job v. Person/organization
 Specific v. general KSAOs

The Nature of Staffing

Group Discussion
 Are
some of the 13 strategic decisions more
important than the others?
 Which
ones and why?
Chapter 2 – Legal Compliance

Employee-Employer relationship
 At-will
employment
 Independent contracting
 Temporary employees
 Out-sourced employees
Legal Compliance

Law and regulations to balance power and
protect employees and employers

Based on common law, constitutional and
statutory law, executive orders and
agencies (Exhibit 2.2)
Legal Compliance

EEO – Equal Employment Opportunity
 Facially

neutral practices
AA – Affirmative Action
 Remedy

effects of past discrimination
Quotas
 Focus
on staffing results; voluntary unless court
ordered as part of AA planning
Legal Compliance
Claims of discrimination require evidence or
proof. Effects can be shown by:
Disparate Treatment
 Disparate Impact

Legal Compliance
Disparate Treatment: (page 56)
1. person belongs to protected class
2. person was qualified
3. person was rejected
4. position remained open and applicants
as qualified were recruited
Legal Compliance
Disparate Impact: (page 57)
Applicant flow statistics
Stock statistics
Concentration statistics
Legal Compliance
Application Flow Statistics
Significant differences in selection rates
between groups
 Applicants
 50
men
 45 women
Hired
25
5
Selection Rate
#hired/#app
25/50 = 50%
5/45 = 11%
Legal Compliance
Application Flow Statistics – Adverse Impact
4/5ths rule or 80% rule
The hiring rate for the protected class
must be at least 80% of the hiring rate for
the non-protected class
Legal Compliance
 Applicants
 50
men
 45 women


Selection Rate
Hired
#hired/#app
25
25/50 = 50%
5
5/45 = 11%
.80(50) = 40
11% is less than 40%, therefore, there may be
adverse impact
Legal Compliance
Your Turn…

Recently ABC, Inc. advertised for
computer programmers. Seventy minority
and 80 non-minority applicants applied for
the positions. ABC hired 55 non-minority
and 7 minority applicants. Is there
disparate impact?
Legal Compliance
 Applicants
 80
Non-minority
 70 Minority
 .80(68)
Hired
55
7
Selection Rate
#hired/#app
55/80 = 68%
7/70 = 10%
= 54%
 10% is less than 54%, therefore, likely that
there is adverse impact.
Legal Compliance
Your Turn…

At Heneman and Judge, Inc. a recent
recruiting campaign was conducted to hire
several new entry level managers. There
were 200 male and 220 female applicants.
Twelve men and 32 women were hired. Is
there disparate impact?
Legal Compliance
 Applicants
 200
men
 220 women
 See
Hired
12
32
Selection Rate
#hired/#app
12/200 = 6%
32/220 = 14%
page 57 (top), “…protected
characteristic…”
Legal Compliance

Stock Statistics
 Underutilization
of women and minorities
relative to their availability in the relevant*
population
 *relevant
= qualified, interested, geographic
Legal Compliance

Stock Statistics

Hired
Men
90%
Women 10%
100%

Available
70%
30%
100%
Disparity between 10% hired and 30% available
Legal Compliance

Your Turn…


Hired

Minority
Non-minority

Disparity? Explain.

20%
80%
Available
40%
60%
Legal Compliance

Concentration Statistics
 Concentration
of women and minorities in
certain job categories
Legal Compliance

Concentration Statistics
 Clerical


% men
% women
3
97
Production
85
15
Sales
45
55
Managers
95
5
Is there Disparity within certain job categories?
Legal Compliance

Your Turn…
 Clerical


% minority
20
% non-minority 80
Production
90
10
Sales
25
75
Managers
15
85
Is there Disparity within certain job categories?
Legal Compliance

Major Federal EEO/AA laws:
 Title

Race, color, religion, sex, national origin
 Age

VII of the CRA (1964, 1991)
Discrimination in Employment Act (ADEA) (1967)
40 or over
 Americans

with Disabilities Act (ADA) (1990)
Qualified individual with a disability
Legal Compliance

Major Federal EEO/AA laws enforced by the
OFCCP (Office of Federal Contract Compliance
Programs) v. EEOC (Equal Employment
Opportunity Commission) for federal contracts:
 Rehabilitation Act (1973)
 Individual with a handicap (OFCCP, Office of Federal
Contract Compliance Programs)
 Executive Order 11246 (1965)
 Race, color, religion, national origin, sex
Legal Compliance

To rebut charges of adverse/disparate
impact, employers must show staffing
practices are job-related and consistent
with business necessity.

Exception: business necessity can’t be
used to justify intentional discrimination
Legal Compliance

Employers can use:
– sex, religion, national origin, age (not
race or color)
 Testing (no score adjustments)
 Seniority
 BFOQ
Legal Compliance

Work in your groups to complete the case “Age
Discrimination in Promotion?” on page 80.

Odd-numbered groups and named groups (e.g.,
Aces, 3s, 5s, etc.) complete question #1 only.
Even-numbered groups complete question #2
only.

Legal Compliance

Uniform Guidelines on Employee
Selection Procedures (UGESP)
 www.eeoc.gov/regs
Legal Compliance

EEO best practice criteria: (page 71)
 Complies with the law
 Promotes EEO
 Manifests management
commitment/accountability
 Ensures management and employee commitment
 Produces noteworthy results
 Does not cause or result in unfairness
 See
SPLENDID on page 71 for EEO programs
Legal Compliance

Become more aware of your field
requirements:
 PIHRA (Professionals
in HRM) www.pihra.org
 SHRM (Society for HRM) www.shrm.org
 Both
have student memberships ($30 & $35)
Legal Compliance

Become more aware of your field
requirements:
 Certification
for HRM professionals
PHR (Professional in HRM)
 SPHR (Senior Professional in HRM)
 GPHR (Global Professional in HRM)

 Finance
– the language of business
Chapter 3 - Planning

External influences on staffing:
 Economic
conditions
 Labor markets
 Labor unions
Planning

Five Steps of Human Resource Planning (HRP):

1. determine future HR requirements
2. determine future HR availabilities
3. conduct ext. and int. environmental scan
4. determine gaps (required v. available)
5. develop action plan to close the gap




Planning

Forecasting HR requirements
Statistical techniques
 Judgmental techniques

Planning

Statistical techniques
 Ratio Analysis
– people to $sales
$sales / 1 FTE
If we can currently do $2,000,000 in business with 10
full-time equivalent employees (or $200,000 sales per
1 FTE), then for every additional $200,000 in
business we would expect to hire one FTE.
Planning

Statistical techniques
– prediction of an
outcome based on several factors
 Regression Analysis
 Why
do we hire new people?
Planning

Regression Analysis
For example based on our projection of new
customers and sales volume:
Y
= a + b1x + b2x + b3x …bnx
Where Y = dependent on x, and x is
independent (changing)
Planning

Regression Analysis
We can predict needed FTEs depending upon
projected sales of $1,000,000 and 300 new
customers:
Y
= a + b1x + b2x + b3x …bnx
FTEs = 7 + .0004(1,000,000) + .03(300)
= 413 new hires or FTEs
Planning

Judgmental technique
 Decision-makers
gather information and
subjectively evaluate it.
 Who
should the “decision-makers” be?
Planning

We just saw that statistical techniques
such as regression and ratio analysis can
be used to predict HR requirements, now
we turn to HR Availability.
Planning

Forecasting HR Availabilities

Statistical techniques
 Markov Analysis – count # employees in each job/category at
time T (past) and where there are in time T+1 (now)

#employees in job at T+1 / #employees in job at T

If 240 employees in job A now, but 400 in that job in the past,
240/400 = .60 (transition probability)
Planning
Markov Analysis

Sales clerk (S1)
Senior sales clerk (S2)
Sales supervisor (S3)
T+1
T
80
60
20
120
55
18
Exit
20
2
0
For T+1, S1: 20 people quit, 20 people were promoted
to S2, and 0 people were promoted to S3
Planning
Markov Analysis

S1
S2
S3
S1
80/120
S2
20/120
S3
0/120
Exit
20/120
Planning
Markov Analysis
S1
S2
S3
S1
.66
S2
.16
S3
0
Exit (Total)
.16 (.98 rounding)
Current Workforce # for S1 =76. So, 76 * .66 = 50 will probably
stay in S1; 12 will probably be promoted to S2; and 12 will
probably exit
If we require 110 people in job S1 there is a shortage (110 – 50 =
60), etc.
Planning
Limitations of Markov Analysis:
- Should have 20 or more employees in each
group; otherwise, results are misleading
- Only shows movement at 2 times, not all
moves employees make
- Must define meaningful, specific job categories
(categories such as “managers” lose meaning
as the numbers may represent many
organizational units)
Planning

Other ways to forecast HR Availability:
reviews – small group of people
focus on movement within/outside exec group
 Succession planning – replacing execs
 Vacancy analysis – per person analysis of
likely movement through organization
 Executive
Planning

Internal and External Scanning
– knowledge of internal labor force
issues, problems, attitudes, etc.
 Internal
– knowledge of consumer market,
economy, labor market, etc.
 External
Planning

Compare Requirements with Availabilities
(Reconciliation and Gaps)
 Develop
action plan to close gap by filling
shortages, promoting or transferring people
when there are surpluses, etc.
Planning

HR Planning provides information on
Staffing flow
Helps to set or support staffing philosophy (e.g., internal
or external staffing)
Supports developing an affirmative action plan and
diversity management
Planning

Case on Flexible Staffing
Planning

Affirmative Action Plans (AAP)
 Do AA goals
represent quotas?
 AA originally designed to overcome past
harm; now a part of diversity programs
 Legal based on the Supreme Court opinion
 (See guidelines for acceptable AAPs, P. 128)
Note:

You will need a calculator for the first exam.

Cell phones and other electronic devices other
than a calculator are not allowed during the
exam.

You may not share a calculator with another
student during the exam.
Chapter 4 – Job Analysis

Job analysis – systematically gathering
information about jobs
 Job

Family (HR, Marketing, etc.)
Job Category (Manager, clerk, analyst, etc.)

Job (definition of a group of tasks to perform)
 Position (definition of tasks for a single employee)
Chapter 4 – Job Analysis

Job analysis – studying jobs…
Dimension – similar types of tasks (decisionmaking, maintenance, supervising, etc.)
 Task
– grouping of elements to define a work activity
(arrange schedules, develop reports, manage
projects)
 Task
– smallest unit into which work can be
divided (develop income statement)
 Element
Chapter 4 – Job Analysis

Application #1 – Conducting a job
requirements or job rewards analysis
Chapter 4 – Job Analysis

Job analysis
 Job
Requirements Matrix and Task Statements
 Specific
Task
 Task Dimension
 %Time
 KSAOs
 Importance of KSAOs to task (time, necessity to
performance of a task, specialized training, etc)
Chapter 4 – Job Analysis

Job analysis
 Task
Statements
 Sentence Analysis
Technique
Verb
Direct Object Output
Equipment, Material, Process…
 Arrange team meetings to develop product ideas using brainstorming and other
decision-making techniques


(note: this is an excellent way to phrase your resume)
Chapter 4 – Job Analysis

Write two task statements for a familiar
job. Be prepared to share your results
with the class.
Chapter 4 – Job Analysis

KSAOs (Exhibits 4.6, 4.7, 4.8, and 4.9)
 Knowledge

Theoretical or conceptual awareness of a body of work such
as mathematics, business, etc.
 Skill

Observable behavior or completed action based on
experience and practice
 Ability

Underlying trait or characteristic such as cognitive,
psychomotor, physical, and sensory
Chapter 4 – Job Analysis

Job requirements matrix
 With
your group, create a job requirements
matrix for one job using Exhibit 4.3 as your
guide.
 Be
prepared to share your results.
Chapter 4 – Job Analysis

Application # 2 – Maintaining job
descriptions
Chapter 4 – Job Analysis

Collecting Job requirements information:
 Prior
information
 Observation
 Interviews
 Questionnaires
Chapter 4 – Job Analysis

Source of information:
 Job
analyst
 Job incumbents
 Supervisors
 Subject matter experts
Chapter 4 – Job Analysis

Process of Job Analysis
 Agree
on purpose
 Set the scope of the project
 Decide on internal experts or consultants
 Name project manager and determine roles
 Set work and time frame
 Analyze, synthesize, and correct, etc.
information
Chapter 4 – Job Analysis

Focus of Job Analysis
analysis – focus on
underlying characteristics such as leadership,
adaptability, technical expertise, creativity, etc.
 Job Rewards analysis – focus on extrinsic
and intrinsic rewards of a job such as
bonuses, flexible work schedule, etc.
 Competency-based
Chapter 4 – Job Analysis

Why is job analysis so important
 Effectiveness
in hiring, training and promotion
 Job description development and
maintenance
 Legal compliance and job relatedness, (see
essential job functions beginning on p. 189)
Chapter 4 – Job Analysis

Putting it all together.
 Try
a job analysis exercise.