Part 5 Staffing Activities: Employment Chapter 09: Decision Making & Final Choice McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Staffing System and Retention Management Support Activities Legal compliance Planning Job analysis Core Staffing Activities Recruitment: External, internal Selection: E xternal, internal Employment: Decision making & final match Organization Mission Goals and Objectives Staffing Organizations Model 11-2

11-3 Chapter Outline Methods of Final Choice Random Selection Ranking Grouping Decision Makers HR Professionals Managers Employees Employment Contracts Requirements for Enforceable Contract Parties to Contract Form of Contract Disclaimers Contingencies Other Employment Contract Sources Unfulfilled Promises Job Offers Strategic Approach to Job Offers Job Offer Content Job Offer Process Formulation of Job Offer Presentation of Job Offer Job Offer Acceptance and Rejection Reneging New Employee Orientation & Socialization Orientation Socialization Examples of Programs

11-4 Discussion Questions for This Chapter Your boss is considering using a new predictor. The base rate is What are the advantages of ranking as a method of final choice over random selection? What roles should HR professionals play in staffing decisions? Why?

11-5 Methods of Final Choice Random selection Each finalist has equal chance of being selected Ranking Finalists are ordered from most to least desirable based on results of discretionary assessments Grouping Finalists are banded together into rank-ordered categories

11-6 Ex. 11.8: Methods of Final Choice

11-7 Decision Makers Role of human resource professionals Determine process used to design and manage selection system Contribute to outcomes based on initial assessment methods Provide input regarding who receives job offers Role of managers Determine who is selected for employment Provide input regarding process issues Role of employees Provide input regarding selection procedures and who gets hired, especially in team approaches

11-8 Discussion Questions What are the advantages of ranking as a method of final choice over random selection? What roles should HR professionals play in staffing decisions? Why?

11-9 Final Match

11-10 Employment Contracts Requirements for enforceable contract Parties to contract Form of contract Disclaimers Contingencies Other employment contract sources Unfulfilled promises

11-11 Employment Contracts Requirements for enforceable contract Offer Acceptance Consideration Parties to contract Employee or independent contractor Third parties

11-12 Employment Contracts (continued) Form of contract Written contract Does the company mean to be held to this? Where appropriate, avoid using words that imply binding commitment. Make sure all related documents are consistent with one another. Always have a second person review what another has written. Look at the entire hiring procedure. Oral contract One-year rule Parole evidence Suggestions

11-13 Employment Contracts (continued) Disclaimers Oral or written statement explicitly limiting an employee right and reserving that right for employer Recommendations for enforcement Clearly stated and conspicuously placed in appropriate documents. Employee should acknowledge receipt and review of the document and the disclaimer. Should state that it may be modified only in writing and by whom. The terms and conditions of employment, including the disclaimer, as well as limits on their enforceability, should be reviewed with offer receivers and employees.

11-14 Employment Contracts (continued) Contingencies Extending a job offer contingent on certain conditions being fulfilled by offer receiver Other employment contract sources Employee handbooks Oral statements made by employer representatives

11-15 Employment Contracts (continued) Unfulfilled promises Organizational HR issues Do not make promises unwilling to keep Be sure promises made are kept Potential legal claims Breach of contract Promissory estoppel Fraud

11-16 Discussion questions If you were the HR staffing manager for an organization, what guidelines might you recommend regarding oral and written communication with job applicants by members of the organization?

11-17 Job Offers Strategic Approach to Job Offers Job offer content

11-18 Ex. 12.1: Strategic Approach to Job Offers

11-19 Job Offer Content Starting date Duration of contract Compensation Starting pay Flat vs. differential rates Exh. 12.2: Example of Starting Pay Policies Variable pay Short term Long term Benefits - Ex Hours Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages Restrictions on employees Other terms and conditions Acceptance terms Sample job offer letter- Ex. 12.4

11-20 Job Offer Process Formulation of job offer Presentation of job offer Job offer acceptance and rejection Reneging

11-21 Formulation of Job Offer Knowledge of competitors Labor demand issues Who are the competitors? What terms and conditions are they offering for the job for which the hiring organization is staffing? Labor supply issues Offers need to attract number of staff required Offers need to consider KSAOs of each offer receiver and the worth of the KSAOs

11-22 Formulation of Job Offer (continued) Applicant truthfulness Minimal evidence exists on degree of applicant truthfulness To combat deceit, organizations are pursuing verification of all applicant information Likely reactions of offer receivers Approaches to assess reactions to offers Gather information about various preferences from offer receiver during recruitment/selection process Conduct research on why offer receivers accept or decline job offers

11-23 Formulation of Job Offer (continued) Policies on negotiations and initial offers Job offers occur for both external / internal staffing Consider costs of job offer being rejected by candidate Candidates may be receiving counteroffers from current employer Currently employed candidates incur costs for leaving and expect a “make whole” offer Candidates are sophisticated in presenting their demands

11-24 Formulation of Job Offer (continued) Strategies for presenting initial offer Lowball offering the lower bounds of terms and conditions to the receiver Competitive an offer that is “on the market,” neither too high nor too low Best shot gives a high offer, one right at the upper bounds of feasible terms and conditions

11-25 Presentation of Job Offer Two approaches Mechanical approach Sales approach

11-26 Job Offer Process: Acceptance, Rejection, Reneging Acceptance Rejection By organization By offer receiver Reneging Exh. 12.6: The messy process of reneging

11-27 Discussion questions If the same job offer content is to be given to all offer receivers for a job, is there any need to use the strategic approach to job offers? Explain. What are the advantages and disadvantages to the sales approach in the presentation of the job offer?

11-28 New Employee Orientation and Socialization Orientation Exh. 12.8: New Employee Orientation Program Suggestions Socialization Content People Performance proficiency Organization goals and values Politics Language History Delivery

11-29 Discussion questions What are examples of orientation experiences you have had as a new hire that have been particularly effective (or ineffective) in helping to make the person/job match happen?

11-30 Ethical Issues Issue 1 A large financial services organization is thinking of adopting a new staffing strategy for entry into its management training program. The program will provide the trainees all the knowledge and skills they need for their initial job assignment after training. So the organization has decided to do college recruiting at the end of the recruiting season, hiring those who have not been fortunate enough to receive any job offers, paying them a salary of 10% below market, and providing no other inducements such as a hiring bonus or relocation assistance. The organization figures this strategy and employee value proposition will yield a higher percentage of offers accepted, low cost per hire, and considerable labor cost savings due to below market salaries. Evaluate this strategy from an ethical perspective.