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1 Human Resource Management
4/21/2017 Human Resource Management Chapter Five Workforce Planning Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

2 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Steps in Recruitment and Selection Process The best way to envision recruitment and selection is as a series of hurdles as shown in Figure 5-1. The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5–2

3 Importance of Workforce Planning
4/21/2017 Importance of Workforce Planning Having the right number of employees with the right skill sets will enable a firm to take advantage of business opportunities Excess staffing is an inefficient use of financial resources A company’s effectiveness is directly affected by the quality of workforce planning decisions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

4 Definition of Workforce Planning
Making sure individuals with the right skills sets are where they need to be at the right time to meet current and future needs Labor demand— number and types of employees the company needs Labor supply— current or potential employees to perform jobs Labor shortage— when demand for labor exceeds available supply Labor surplus—when supply of labor is greater than demand Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

5 Workforce Planning Internal Considerations Turnover Employee Movement
Productivity Company performance Strategic direction External Considera- tions Turnover Economic conditions Industry trends Workforce Planning Labor Surplus Tactics Layoffs Attrition and Hiring Freezes Early Retirement Promotions, Transfers, Demotions Status Quo –Maintain the firm’s employment levels Labor Shortage Tactics Overtime Contingent Labor Employe retention Promotions, Transfers, Demotions New Hires Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6 Forecasting Labor Supply & Demand: Internal Factors
Turnover: voluntary and involuntary termination of employees Creates stress on co-workers who must pick up the slack Adds costs and time demands associated with filling open positions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

7 Internal Factors (cont’d)
Employee Movements: Promotions—moving to higher level positions Transfers—moving to jobs with similar responsibility Demotions—moving to lower-level positions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

8 Tracking Employee Movements
Replacement charts—identifying potential replacement employees for positions that could open up within the organization Succession planning—identifying employees who might be viable successors for top managerial positions Transition matrix—model for tracking movement of employees throughout the organization to plan for the future Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

9 Replacement Card Sample
4/21/2017 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Transition Matrix Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

11 Employee Productivity
Productivity is the level of a firm’s output (products or services) relative to inputs (employees, equipment, materials, etc.) O/I Productivity ratio—the number of employees needed to achieve a certain output level Managers can calculate the number of employees needed once they have productivity ratios Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

12 Tactics for Labor Shortages
Overtime—quick solution for short duration but will be costly and may lead to stress, burnout, turnover Outsourcing—sending work to other companies (payroll, cafeteria, maintenance) Contingent labor—hiring employees on a temporary or contractual basis Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

13 Tactics for Labor Shortages (cont’d)
Numerical flexibility—adjusting number of employees quickly to meet seasonal demands Functional flexibility—modifying composition of workforce by using workers with different knowledge and skills Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Employee Retention Lowering turnover lowers a firm’s costs of recruiting, selecting, and training new employees Employee satisfaction is a key predictor of turnover Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Labor Surplus Tactics Layoffs—quickly reducing the number of workers employed Used to quickly adjust the size and composition of the workforce Focused on short-term cost containment Can produce feelings of job insecurity and lead to lower commitment and higher turnover Attrition—decision not to fill vacant positions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

16 Labor Surplus Tactics (cont’d)
Hiring Freeze— ban on all hiring for a period of time Early Retirement—financial incentive to have employees retire early (can result in mass exodus) Promotions, transfers, demotions—can move people to other areas of the firm facing shortages Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

17 Company Characteristics and Workforce Planning
Companies focused on cost will deal with labor surplus quickly (layoffs) Companies focused on differentiation may have more ability to absorb costs of surplus and will be reluctant to outsource certain positions Smaller companies will feel a greater impact of shortages or surpluses Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

18 Who Conducts Workforce Planning
Larger companies use HR department and technology to track labor force Smaller companies look to managers and supervisors Companies in early development often require managers to “wear many hats” Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

19 Stress and Work/Life Balance
Layoffs create stress on employees who lose jobs but also on families and communities where they live Current employees have to work harder, put in more hours or work in new areas and feel insecure Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

20 Perceptions of Justice
It is important that employees understand the rationale behind the decisions (distributive justice) Even if employees agree with decision, they may disagree with how the practice is implemented (procedural justice) Key is open lines of communication to maximize employee involvement and acceptance Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

21 Labor Force Trends and Workforce Planning
Stay current on emerging labor force trends that affect company (occupational and demographic trends) Many companies are increasingly competing with other companies for limited supply of workers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

22 Selecting Tactics to Use
Actively retain employees to prepare for labor shortages Modify the nature of the job Actively recruit older employees Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

23 Determining Number of Employees Needed
Automation—machines performing tasks that could otherwise be performed by people Technological improvements help companies redesign processes and improve productivity ratios Technology also changes types of skills employees need to service customers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

24 Workforce Planning Forecasts
Companies can track skill sets of employees and identify potential matches for jobs Succession planning increases ability to identify and track future replacements Globalization has fueled trend toward offshoring and global opportunities (IT jobs, call centers) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Globalization Benefits include access to a large labor supply Wages are a fraction of what they are in the United States Opportunities to operate a firm “24/7” without any downtime Risks include maintaining product and service quality Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

26 Case Study: East Cost Bank
Paula Mason’s position is created to provide administrative support for the regional manager in charge of the southwest region. Each region has 8 to 12 bank branches Each branch consists of 4 primary positions Branch managers Assisstant managers Loan officers Tellers/customer service agents On average, each bank has 1 Branch manager 3 Assisstant managers 4 Loan officers 15 Tellers/customer service agents Questions Based on the transition matrix for ECB which positions are experiencing a labor surplus or a labor shortage? What tactics would you use to address the labor shortages? Why? What tactics would you use to address the labor surpluses? Why? Do you see any areas that are of particular concern? What plan would you recommend for the future to prevent excess surpluses and shortages? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

27 Transition Matrix for Southwest Region
2009 2008 Branch Managers Assistant Managers Loan Officers Tellers/Cust Srv Agts Exit the Company 8 Branch Managers 6 (75 %) 2 (25 %) 24 Assistant Managers 2 (8 %) 16 (67 %) 1 (4 %) 4 (17 %) 36 Loan Officers 2 (6 %) 26 (72 %) 8 (22 %) 120 Tellers/Customer Srv. Agents 14 (12 %) 2 (2 %) 64 (53 %) 40 (33 %) Anticipated Labor Supply 8 32 29 65 26 % (54 out of 204) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

28 Human Resource Management
4/21/2017 Human Resource Management Chapter Six Recruitment Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-1

29 Purpose of Recruitment
4/21/2017 Purpose of Recruitment Activities that will identify potential employees, communicate job and organizational attributes to them and convince them to apply Key to success is finding qualified individuals who have knowledge, skills and abilities (competencies) to do the job Effective recruiting will free managers to spend more time and effort on other management activities Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-2

30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Recruitment Process Decide on the objective for the recruiting process (quick hiring with few applicants or recruit a large number of applicants for best match) Identify the best sources for recruitment Craft the recruitment message Familiarize oneself with the job duties and requirements of the position In small business, managers are involved in all stages. In large businesses, recruiters take the lead 6-3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Internal Recruitment Gives opportunities for promotion to employees Word of mouth is simplest, but not always most effective Job posting is most common formal method: posting note on bulletin board, note in company newsletter, or on company intranet Succession planning and replacement charts Rehiring Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-4

32 Other Methods of Sourcing Internal Candidates
Performance appraisals or supervisor feedback on candidates Special programs like Deloitte’s Career Connections provide Information about other job and career opportunities internally Intranet based one-on-one career coaching and development information Career management tools, self assessments, a resume builder, information on seeking jobs internally Program provided savings about $ 14 millions in few years. 6-6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

33 Pros and Cons of Internal Recruitment
Most cost-effective Existing employees already familiar with company and its culture Employees motivated by opportunities for advancement Managers have access to applicants’ past performance Cons: Sometimes companies want new ideas Need for diversity 6-7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

34 Locating Outside Candidates
4/21/2017 External Recruitment Locating Outside Candidates 1 6 2 3 Recruiting via the Internet 7 8 College Recruiting 4 Advertising Referrals and Walk-ins 5 Employment Agencies Sourcing Temp Agencies and Alternative Staffing Executive Recruiters Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
External Recruitment Source should be dictated by nature of the job, location, and skill level needed Relevant labor market: location in which one can reasonably expect to find a sufficient supply of qualified applicants Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-8

36 External Recruitment: Recruiting via the Internet
4/21/2017 External Recruitment: Recruiting via the Internet Kariyer net etc. Company Web sites may contain a “Careers” link design and content of these sites are important because they convey information about the culture of the organization. Detail job descriptions, information about career paths lead to favorable perceptions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

37 Outstanding Employer Web Site
State Farm® Career Center FOUND: A great place to work! You have the skills. We have the opportunity, character, and strength you demand. Let's talk about your future with State Farm® Meet Our People Shyam, Actuarial Analyst Learn More Diversity At State Farm, diversity isn't a program, it's a state of mind. Learn More Provide information about Career paths Sample interview questions List of recruiting events Benefits, work/life balance, compensation Recruiter link Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-10

38 External Recruitment: Recruiting via the Internet
Advantages Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation Disadvantages Excessive number of unqualified applicants Personal information privacy concerns of applicants Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

39 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
4/21/2017 Advertising The Media Choice Selection of the best medium depends on the positions for which the firm is recruiting. Should use multiple sources and keep them up-to-date Newspapers (most popular): local and specific labor markets (Sunday vs. weekday) Downside is expense On-line job posting on bulletin boards at colleges, or professional organizations Trade and professional journals: specialized employees Internet job sites: global labor markets Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
College Recruiting Sending recruiters to college campuses to attract employees right out of college Recruiters usually have multiple openings May speak to student organizations or alumni groups Internships are sometimes offered to evaluate performance and allow student to get to know organization Business- College joint projects 6-11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

41 Employment Agencies and Search Firms
May benefit small HR departments to make recruiting process more efficient Public employment agency???? Private employment agencies provide job search assistance for a fee Contingency recruiting agencies are paid a fee or percentage of new hire’s salary (% 20 – 30)upon completion of search and placement. 90 days to one year guarantee is given 6-12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

42 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Search Firms (cont’d) Retained agencies paid a retainer by employer to conduct job search (also called executive search firms or headhunters). There is upfront payment and the rest is paid at different times On-demand recruiting services charge based on time spent (weekly, monthly) recruiting rather than per hire for large number of recruitment needs 6-13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

43 Other Recruitment Sources (cont’d)
Temporary Employees may often become permanent employee (temp to hire) Employee Referrals—employees can receive a bonus if their referral is hired and many referrals tend to have lower turnover and greater job satisfaction 6-15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

44 Pros and Cons of External Recruitment
More costly than internal recruitment May upset existing employees if internal applicants don’t get the job Give firm the opportunity to bring in employees with fresh perspective Allows company to target specific competencies that current employees may not possess 6-17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

45 Preparing Recruitment Advertisements
Creating a value proposition will help applicants differentiate one company from another Recruitment value proposition should include: Information about job’s duties, working environment, rewards Company’s corporate image and values Level of compensation and leadership development opportunities Social responsibility Helps an applicant understand what day-to-day life in the firm will be like 6-18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

46 Writing the Recruitment Message
Starting point is to answer “why a highly talented person would want to work at the company?” Individuals are attracted to jobs for which they have more information Little information in the ads imply that company does not value its employees highly enough Convey the value proposition and company-related information Include brief description of job and its minimum requirements Gear a high quality message to target audience Effective Ads Create attention, interest, desire, and action (AIDA). Create a positive impression of the firm. 6-19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

47 Minimum Requirements for a Job Ad
Content Job title Brief description of duties Minimum education, experience and skill levels required Special criteria like extensive tavel or relocation Brief overview of the company Benefits provided Writing Start with an attention-getter (Looking for a great place to work?) Use proper grammer and punctuation Minimize the use of abbreviations Keep it focused Avoid discriminatory language (young and energetic employees sought) Applying How to apply Where to apply Deadline Privacy promise Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

48 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Ineffective and Effective Web Ads The best Web ads don’t just transpose newspaper ads to the Web. Figure 5-8 shows both an example of an ineffectively recycled print ad and an effective Web ad. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5–48 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5–48

49 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Help Wanted Ad that Draws Attention Figure 5-9 shows an ad from one classified section. Why does this ad attract attention? The phrase “next key player” certainly helps. Employers usually advertise key positions in display ads like this. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5–49 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 5–49

50 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Recruiters Includes professional recruiters and managers involved in identifying and attracting employees Personality of recruiter (warmer) and knowledge about job and company are important Need to be trained on value proposition, and issues about false representation 6-20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

51 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Realistic Job Preview Balanced recruitment (both favorable and not favorable) message will have the best long-term results Realistic job preview (RJP) will enable applicants to screen themselves out of application process RJP will help decrease turnover and increase satisfaction of new hires Shadowing (observing someone doing the job) can be used as an effective RJP 6-21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

52 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Recruitment Follow Up Maintaining communication with prospective employees conveys your company’s interest in them The way you communicate affects company image Let each applicant know their status by sending a personalized letter Measure effectiveness of recruitment effort with yield ratio (ratio of number selected to number applied)cost-per-hire, time to fill, and managers’ feedback 6-22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

53 Content of Recruitment Message
Advantages of working for the organization Competencies sought Positive “story” about why employees would want to work for company Cost leadership strategy: message may focus on efficiencies and cost reductions (BİM) Differentiation strategy: message may focus on customer experience (Tiffany & Co.) 6-23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

54 Choice of Recruitment Methods
Word-of-mouth (employee referrals) is low-cost Trade publications and Web sources target individuals with specific backgrounds or skills More established firms have more formal recruitment processes 6-24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

55 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing Recruitment Smaller companies require managers take lead in recruitment process Larger companies will have staffing departments Companies should focus on specific job information, reputation of company, and compensation and benefits package Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

56 Internal vs. External Recruiting
Many companies attempt to fill position internally before recruiting externally Too much focus on internal recruiting may make the company too insular Too much focus on external recruiting will make employees feel less valued and lead to turnover 6-26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

57 Appeal of the Recruitment Message
Not all applicants will focus on same things when seeking a new job: Company’s culture Development of their careers Opportunities to create innovative products Values of work/life balance Tasks of the job itself Benefits and compensation level 6-27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

58 Value Proposition Offered
Fortune’s list of 100 best companies to work for include: those that stress work/life balance and corporate social responsibility 6-31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

59 Challenges to Truth-in-Hiring
Employers trying to aggressively attract employees in tight labor market may mislead Employees who are terminated may seek recourse against former employers Job candidates may be lured away from existing job with promises that fail to materialize 6-32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

60 Ethics and Regulatory Issues
Code of ethics should be shared with applicants during recruitment process Poaching (taking employees from competitors) may backfire when new employees leave for the next best offer Recruitment activities cannot discriminate, firms should use multiple sources for applicants Recruiters should be trained on behavior and what questions to ask job applicants Careful attention to recordkeeping of resumes and applications 6-34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

61 Classwork: Writing an Ad
Find or write a job description for a job of interest to you and prepare a recruitment message and recruitment plan: Write the advertisement Where would you place the ad and why? What aspect of the ad do you think is most important? Discuss your decision. What information other than the job description would you use to decide what to include in the ad? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

62 Human Resource Management
4/21/2017 Human Resource Management Chapter Seven Selection Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

63 Selection and Performance
4/21/2017 Selection and Performance Hiring manager has ultimate responsibility for selection of employees, not HR manager Performance of company is directly correlated to employees hired and the competencies they bring to the job Employees who are not a good fit tend to make mistakes and/or leave often resulting in lost customers and money Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

64 Why Careful Selection is Important
4/21/2017 Human Resources Management 12e Gary Dessler Why Careful Selection is Important Organizational performance Costs of recruiting and hiring The Importance of Selecting the Right Employees Legal obligations and liability Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6–64

65 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Selection Systematic process of deciding which applicants to hire, promote or move to other jobs Prediction—selecting an applicant that can do the job or learn to do it well Internal selection is moving current employees into vacant positions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

66 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Person-Job Fit A good match between applicant’s KSAs and interests with those of the job Satisfied employees tend to be more productive A strong fit maximizes the benefits for employees and the organizations for which they work Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

67 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Selection Methods Initial screening involves reviewing the information provided by applicants to decide which applicants are worthy of consideration Review application form answers and resumes Conduct screening interviews Final screening is taking a more in-depth look at applicants. Final screening narrows down number of candidates to enable final selection Use employment tests Conduct interviews Conduct reference and backgroud checks Use “assessment centers” Drug tests, medical examinations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

68 Guidelines for Application Questions
Applications and resumes are important to determine which applicants meet minimum job requirements (education, previous experience, etc.) Guidelines for application questions: Keep questions job related Ask questions about relevant past work experience, skills, abilities, education, goals and interests Don’t ask personal questions. Even the following questions are regarded as personal in US Are you married? What year did you graduate from high school? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

69 Tips for Screening Resumes
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

70 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Screening Interviews Calling applicant and conducting a short telephone interview Confirms person is still looking for a job Provides clues about person’s oral communication skills Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

71 Use of Tests in Selection Process
Use tests as supplements Check the reliability and validity of the test in Turkish Culture Ask other firms who uses these tests for referance before you start to use one Use a certified people or rather a psychologist for personality inventories Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

72 Basic Testing Concepts
4/21/2017 Human Resources Management 12e Gary Dessler Basic Testing Concepts Reliability Describes the consistency of scores obtained by the same person when retested with the identical or alternate forms of the same test. Are test results stable over time? Validity Indicates whether a test is measuring what it is supposed to be measuring. Does the test actually measure what it is intended to measure? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6–72

73 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Types of Tests Aptitude Tests Motor and physical abilities Personality and interests What Different Tests Measure Current achievement Basic talents & abilitis Personality traits & characteristics Endurance, strength or general fitness Current knowledge or skill level Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6–73

74 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Types of Tests Cognitive abilities Work sample test Knowledge tests What Different Tests Measure Combined tests Reasoning, memory, comprehension Sample of work representative of the job Mastery of subject matter Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6–74

75 Measuring Personality
Most common method: self-reporting surveys Problems: Easy to fake deliberately Social desirability bias Two dominant frameworks used to describe personality(primary traits that govern behavior): Myers-Briggs Type Indicator (MBTI®) Big Five Model Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

76 The Myers-Briggs Type Indicator
Most widely used instrument in the world. Participants are classified on four axes to determine one of 16 possible personality types, such as ENTJ. Extroverted (E) Introverted (I) Sensing (S) Intuitive (N) Thinking (T) Feeling (F) Judging (J) Perceiving (P) Sociable Assertive Outgoing Quiet and Shy Unconscious Processes Big Picture Practical Orderly Routine Uses Values & Emotions Use Reason and Logic Flexible and Spontaneous Want Order Structure& Control Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

77 The Big Five Model of Personality Dimensions
Five basic dimensions underlie all others Research has shown Big Five to be a better framework. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

78 The Big Five Model of Personality Dimensions
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

79 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Graphology - use of handwriting analysis to determine the writer’s basic personality traits. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6–79

80 When to Use Employment Tests
Current selection process does not result in quality of employees desired Turnover or absenteeism is high Current selection methods do not meet professional or legal standards Productivity is low Errors made by employees could have safety, health, or financial consequences Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

81 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Interviews Panel interview—several people interviewing applicant at the same time Unstructured interviews—interviewer will ask job-related questions but without defined format and uses different questions with different applicants Structured interview—more accurate means of comparing responses across applicants, same questions asked to all applicants Situational interview—interviewer poses hypothetical situations and asks how candidate would respond Behavioral interview—interviewer asks how candidate has handled a situation in the past Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

82 Human Resources Management 12e Gary Dessler
4/21/2017 Human Resources Management 12e Gary Dessler Examples of Questions Situational Questions 1. Suppose a more experienced coworker was not following standard work procedures and claimed the new procedure was better. Would you use the new procedure? 2. Suppose you were giving a sales presentation and a difficult technical question arose that you could not answer. What would you do? Past Behavior Questions 3. Based on your past work experience, what is the most significant action you have ever taken to help out a coworker? 4. Can you provide an example of a specific instance where you developed a sales presentation that was highly effective? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 7–82

83 Biases and Errors of Interviewers
4/21/2017 Human Resources Management 12e Gary Dessler Biases and Errors of Interviewers Impression management -self promotion, ingratiation Applicant’s personal characteristics (gender, attractiveness etc.) Interviewer’s inadvertent behavior (demographic similarity, playing the psychologist etc.) Factors Affecting An Interview’s Usefulness Halo effect- first impressions affect the other attributes Interviewer’s misunderstanding of the job Contrast Effect – Candidate order affects the evaluation Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 7–83

84 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Assessment Centers Put candidates through a series of simulations designed to assess their ability to perform aspects of job they are seeking (example: communication, decisiveness, delegation, planning, etc.) In-basket—candidates sort through and respond to letters, memos, reports within a specified time frame Leaderless group discussion—candidates are given a problem to solve Role plays—candidates play out job-related situations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

85 Other Screening Techniques
Reference checks—potential employer can contact applicant’s references to verify information (applicants should sign release form granting permission) Background checks—verifying information provided during the application process or to obtain additional information (education, criminal check, credit reports) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

86 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Drug and Medical Tests Drug testing is used extensively in some countries Medical exams can only be required after an offer of employment has been made Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

87 Choosing Among Selection Methods
Compensatory approach - a process for deriving a final score for each candidate in the selection process by weighting outcomes on multiple selection measures differentially so that some items are “weighted” more heavily than others and a high score on one part can offset a low score on another part Multiple-hurdle—applicants have to successfully pass each step (hurdle) to continue on in the selection process Multiple-cutoff—applicants have to reach a minimum score on each measure to remain in the running for a particular job Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

88 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Selection in Practice Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

89 Factors Affecting Selection Practices
Company’s strategy and core competencies required of all employees Low-cost strategy might focus on efficiency and productivity using simple application, short interview Differentiation might focus on customer service using role plays, situational interviews, etc. Larger companies use more formal and extensive selection process, smaller companies very informal, simplified process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

90 Factors Affecting Selection Practices (cont’d)
Person-Organization fit—how well a person fits within the broader organizational culture (values) Promotion-from-within policy—extent to which a company tends to promote current employees rather than look outside the organization Efforts to reduce bias and treat applicants in fair and consistent manner Labor market including skills of applicants and willingness of applicants to accept jobs Globalization and need to modify selection process for language differences Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

91 Technology and Selection
4/21/2017 Technology and Selection Applications are completed at a computer kiosk Computer based personality or situational judgment questionnaire used for screening interview Applicants call in to respond to questions Reference and background checking may now be done by companies online Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

92 Globalization and Selection
Hiring increasingly large numbers of international employees to work domestically Selecting internal candidates to send to other countries Hiring host-country nationals to work in host countries Hiring international employees to work for company abroad Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

93 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Privacy Concerns Selection methods like background checks, credit reports, drug tests should be used only when job related and less invasive alternatives are not available Rationale should be explained to applicants Reliability and validity should be established Think through what information is ethical and responsible to divulge to applicants Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


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