New Chapter 8

CHAPTER 8:STAFFING

Copyright © 2005 South-Western. All rights reserved.

Copyright © 2005 South-Western. All rights reserved. 1–2

StaffingStaffing

• StaffingStaffing– Process of recruiting & selecting prospective Process of recruiting & selecting prospective

employeesemployees– Has significant impact on organization’s bottom line Has significant impact on organization’s bottom line

• Requires staffing process to become strategically Requires staffing process to become strategically focusedfocused

– Recruitment & selection activities offer organization Recruitment & selection activities offer organization numerous choices to find & select new employeesnumerous choices to find & select new employees

– Staffing decisions need to ensure employees fit Staffing decisions need to ensure employees fit organization’s cultureorganization’s culture


RecruitingRecruiting

• Temporary versus permanent employeesTemporary versus permanent employees– Increase headcount temporarily or permanently Increase headcount temporarily or permanently

should be strategically-drivenshould be strategically-driven– Basis for decisions is HR forecastBasis for decisions is HR forecast– Temporary employees less costly Temporary employees less costly – Temporary headcount increases can be obtained Temporary headcount increases can be obtained

from specialized agenciesfrom specialized agencies– Headcount increases can be avoided by Headcount increases can be avoided by

subcontracting work subcontracting work


Exhibit 8-1Exhibit 8-1Advantages & Disadvantages of Internal & Advantages & Disadvantages of Internal &

External RecruitingExternal Recruiting


RecruitingRecruiting

• When & how extensively to recruitWhen & how extensively to recruit– When do recruiting efforts need to begin?When do recruiting efforts need to begin?– How large an applicant pool needed?How large an applicant pool needed?– Data from past recruiting efforts utilized Data from past recruiting efforts utilized

• To answer questions where feasible To answer questions where feasible • Adjust for changed conditionsAdjust for changed conditions

• Yield ratiosYield ratios– Offer information on how many applicants eliminated/remain Offer information on how many applicants eliminated/remain

at each step in recruitment process at each step in recruitment process – Can determine proper or necessary size of applicant poolCan determine proper or necessary size of applicant pool


Exhibit 8-2Exhibit 8-2Recruiting PyramidRecruiting Pyramid


Exhibit 8-3Exhibit 8-3Recruiting TimelineRecruiting Timeline


Methods of RecruitingMethods of Recruiting• Informally or formallyInformally or formally• Internally or externallyInternally or externally• Targeted advertising in selected mediaTargeted advertising in selected media• Recruiting on InternetRecruiting on Internet• Outsourcing to staffing agenciesOutsourcing to staffing agencies• Private Industry Councils (PICs)Private Industry Councils (PICs)• Executive search firmsExecutive search firms• On-campus recruitingOn-campus recruiting


Recruiting on InternetRecruiting on Internet

• One of fastest-growing recruitment methodsOne of fastest-growing recruitment methods• More cost-effective than newspaper advertisingMore cost-effective than newspaper advertising• Low cost, speed, & ability to target applicants Low cost, speed, & ability to target applicants

with technical skillswith technical skills• Allows applicants to assess interests & needs with Allows applicants to assess interests & needs with

employer’s offeringsemployer’s offerings• Global exposure to potential applicantsGlobal exposure to potential applicants• Can cut search process time by as much as 75%Can cut search process time by as much as 75%


Recruiting on InternetRecruiting on Internet

• Some potential challenges Some potential challenges – Ensuring securityEnsuring security– VirusesViruses– Access to unauthorized areasAccess to unauthorized areas– Disparate impact against certain protected Disparate impact against certain protected

classesclasses– Can complicate reporting of data related to Can complicate reporting of data related to

compliance with federal & state lawscompliance with federal & state laws


Selection Process IssuesSelection Process Issues

• ReliabilityReliability– Consistency of measurement Consistency of measurement – Screening criteria should elicit same results Screening criteria should elicit same results

in repeated trials across time & evaluatorsin repeated trials across time & evaluators– Reliability influenced by criterion deficiency & Reliability influenced by criterion deficiency &

contamination errorscontamination errors– Reliability is prerequisite for validityReliability is prerequisite for validity


Selection Process IssuesSelection Process Issues

• ValidityValidity– Degree to which what is assessed is related to actual Degree to which what is assessed is related to actual

performanceperformance– Ability to establish job-related validity is crucial to employers Ability to establish job-related validity is crucial to employers

in defending themselves in discrimination allegations in defending themselves in discrimination allegations – Content validity illustrates that measure or criterion is Content validity illustrates that measure or criterion is

representative of actual job content or knowledge representative of actual job content or knowledge – Criterion (empirical) validity demonstrated by relationship Criterion (empirical) validity demonstrated by relationship

between screening criteria & job performancebetween screening criteria & job performance


Interviewing Process IssuesInterviewing Process Issues

• Who should be involved?Who should be involved?– Prospective supervisors, peers, subordinatesProspective supervisors, peers, subordinates

• Which interview format?Which interview format?– Individual or group interviewsIndividual or group interviews

• Common interviewer errorsCommon interviewer errors– Similarity errorsSimilarity errors– Contrast errorsContrast errors– First impressionFirst impression– Halo errorsHalo errors– Personal biasesPersonal biases


Behavioral InterviewingBehavioral Interviewing

• Used with experienced & inexperienced Used with experienced & inexperienced applicantsapplicants

• Asks about situations candidate is likely to Asks about situations candidate is likely to face on jobface on job

• Candidates can present real-life situations Candidates can present real-life situations they were involved in & how they handled they were involved in & how they handled themthem


TestingTesting• Work sample tests Work sample tests

– Ask applicant to complete representative sample of Ask applicant to complete representative sample of actual workactual work

• Trainability tests Trainability tests – Measure Measure

• Aptitude in certain areas Aptitude in certain areas • Ability to understand critical job components that Ability to understand critical job components that

firm will teach new hiresfirm will teach new hires


TestingTesting• Realistic job previewsRealistic job previews

– Make applicants aware of both positive & negative Make applicants aware of both positive & negative aspects of jobaspects of job

– Decrease likelihood new employee will become Decrease likelihood new employee will become dissatisfieddissatisfied

– Increase likelihood of candidate’s self-selecting out Increase likelihood of candidate’s self-selecting out of positionof position

• Personality testing is useful in anticipating Personality testing is useful in anticipating how applicants are likely to behavehow applicants are likely to behave


Exhibit 8-4Exhibit 8-4The Big Five Personality DimensionsThe Big Five Personality Dimensions

Personality DimensionPersonality DimensionCharacteristics of Person Scoring Characteristics of Person Scoring Positively on DimensionPositively on Dimension

1) Extraversion1) Extraversion Outgoing, talkative, social, assertiveOutgoing, talkative, social, assertive

2) Agreeableness2) Agreeableness Trusting, good-natured, cooperative, Trusting, good-natured, cooperative, soft-heartedsoft-hearted

3) Conscientiousness3) Conscientiousness Dependable, responsible, Dependable, responsible, achievement-oriented, persistentachievement-oriented, persistent

4) Emotional stability4) Emotional stability Relaxed, secure, unworriedRelaxed, secure, unworried

5) Openness to experience 5) Openness to experience Intellectual, imaginative, curious, Intellectual, imaginative, curious, broad-mindedbroad-minded


Other Testing MethodsOther Testing Methods

• Personality testingPersonality testing– Useful to anticipate how applicants likely to behaveUseful to anticipate how applicants likely to behave– Few, if any, jobs require specific personality typeFew, if any, jobs require specific personality type– Have been successfully challenged in courtHave been successfully challenged in court

• Physical testingPhysical testing– Restricted under ADA to testing only for specific Restricted under ADA to testing only for specific

critical job-related physical performance critical job-related physical performance requirementsrequirements


Other Testing MethodsOther Testing Methods

• Honesty testingHonesty testing– Declined since passage of Polygraph Protection Declined since passage of Polygraph Protection

Act in 1988Act in 1988

• Drug testingDrug testing– Challenged in courts as invasion of privacyChallenged in courts as invasion of privacy

• ReferencesReferences– Little information available due to former employer Little information available due to former employer

fears of liability for libel, slander & defamationfears of liability for libel, slander & defamation


Selection for International Selection for International AssignmentsAssignments

• Reasons for failure on international Reasons for failure on international assignments assignments – Interpersonal & acculturation abilities Interpersonal & acculturation abilities – Rarely technical skills Rarely technical skills

• Test employees’ adaptability, open-Test employees’ adaptability, open-mindedness, ability to tolerate uncertainty mindedness, ability to tolerate uncertainty & ambiguity & independence& ambiguity & independence

• Interview & screen family members who Interview & screen family members who would accompany employeewould accompany employee


Exhibit 8-4Exhibit 8-4Strategic Issues in StaffingStrategic Issues in Staffing


Reading 8.1Reading 8.1Hiring for Organization, Not JobHiring for Organization, Not Job

• New model of selection geared toward hiring New model of selection geared toward hiring “whole” person who fits into organization’s “whole” person who fits into organization’s cultureculture

• ““Strong situation” Strong situation” – Intensity of situation suppresses variation in behavior Intensity of situation suppresses variation in behavior

attributable to personattributable to person

• ““Weak situation” Weak situation” – Allows range of employee responses to work requirementsAllows range of employee responses to work requirements

• In organizations that are “weak situations” In organizations that are “weak situations” – More important to do good job of hiring right peopleMore important to do good job of hiring right people


Reading 8.1Reading 8.1Hiring Process for Person-Hiring Process for Person-

Organization FitOrganization Fit• Assess overall work environmentAssess overall work environment

– Job analysisJob analysis– Organizational analysisOrganizational analysis

• Infer type of person requiredInfer type of person required– Technical knowledge, skills & abilitiesTechnical knowledge, skills & abilities– Social skillsSocial skills– Personal needs, values & interestsPersonal needs, values & interests– Personality traitsPersonality traits


Reading 8.1Reading 8.1Hiring Process for Person-Hiring Process for Person-

Organization FitOrganization Fit• Design “rites of passage” for organization entry Design “rites of passage” for organization entry

that allow both organization and applicant to that allow both organization and applicant to assess their fitassess their fit

– Tests of cognitive, motor & interpersonal abilitiesTests of cognitive, motor & interpersonal abilities– Interviews by potential coworkers & othersInterviews by potential coworkers & others– Personality testsPersonality tests– Realistic job previews, including work samplesRealistic job previews, including work samples

• Reinforce person-organization fit at workReinforce person-organization fit at work– Reinforce skills & knowledge through task design & trainingReinforce skills & knowledge through task design & training– Reinforce personal orientation through organization designReinforce personal orientation through organization design


Reading 8.1Reading 8.1Potential Benefits & Problems with Potential Benefits & Problems with Hiring for Person-Organization FitHiring for Person-Organization Fit

• Potential benefitsPotential benefits– More favorable employee attitudesMore favorable employee attitudes– More desirable individual behaviorsMore desirable individual behaviors– Reinforcement of organizational designReinforcement of organizational design

• Potential problemsPotential problems– Greater investment of resources in hiring processGreater investment of resources in hiring process– Relatively undeveloped & unproven supporting selection Relatively undeveloped & unproven supporting selection

technologytechnology– May be difficult to use full model where payoffs are greatestMay be difficult to use full model where payoffs are greatest– Lack of organizational adaptationLack of organizational adaptation


Reading 8.2Reading 8.2Reasons for Expatriate Early Reasons for Expatriate Early

DepartureDeparture• Not performing job effectivelyNot performing job effectively 48.4%48.4%• Received other, more rewarding offer (other co.)Received other, more rewarding offer (other co.) 43.7%43.7%• Expatriate or family not adjustingExpatriate or family not adjusting 36.6%36.6%• Expatriate or family missing homeExpatriate or family missing home 31.0%31.0%• Received more rewarding offer (current co.)Received more rewarding offer (current co.) 17.2%17.2%• Unable to adjust to deprived living standardsUnable to adjust to deprived living standards 10.3%10.3%• Concerned with problems of safety & healthConcerned with problems of safety & health 10.3%10.3%• Believed children’s education was sufferingBelieved children’s education was suffering 7.1% 7.1%• Feared assignment would slow career advanceFeared assignment would slow career advance 7.1% 7.1%• Spouse wanted careerSpouse wanted career 6.1% 6.1%• Compensation package inadequateCompensation package inadequate 0.0% 0.0%


Reading 8.3Reading 8.3Frequently Mentioned Obstacles to Global Frequently Mentioned Obstacles to Global

Staffing SystemStaffing System• Legal requirements across Legal requirements across

countries/regionscountries/regions• Education system across Education system across

countries/regionscountries/regions• Economic conditions across Economic conditions across

countries/regionscountries/regions• Ability to acquire & use Ability to acquire & use

technologytechnology• Labor market variationsLabor market variations• Value differences across Value differences across

culturescultures• Availability of off-the-shelf Availability of off-the-shelf

translated toolstranslated tools

• Level of HR experience varies Level of HR experience varies across regionsacross regions

• Role of HR in hiring varies Role of HR in hiring varies across regionsacross regions

• Familiarity with a tool or Familiarity with a tool or practice variespractice varies

• Misperceptions that something Misperceptions that something is a cultural differenceis a cultural difference

• Limited local resources for Limited local resources for implementationimplementation

• Beliefs about whether a global Beliefs about whether a global system is US-centric or system is US-centric or imposedimposed


Reading 8.3Reading 8.3Frequently Mentioned Benefits to Global Frequently Mentioned Benefits to Global

Staffing SystemStaffing System• Global database of qualified Global database of qualified

talenttalent• Quick identification of Quick identification of

candidates to meet needs of candidates to meet needs of specific locationspecific location

• Provision of consistent Provision of consistent message about company to message about company to candidates worldwidecandidates worldwide

• Quality of all hires is ensuredQuality of all hires is ensured• Better understanding of Better understanding of

country/regional needs by all country/regional needs by all HRHR

• Global succession planning is Global succession planning is enabledenabled

• Global HR personnel have Global HR personnel have access to the latest versions of access to the latest versions of products/toolsproducts/tools

• Shared vision of HR globallyShared vision of HR globally• Comparisons of staffing results Comparisons of staffing results

across locationsacross locations• Global database as internal Global database as internal

benchmark of achievement in benchmark of achievement in different parts of worlddifferent parts of world

Documents

New Chapter 8