Part 1 The Nature of Staffing

Part 1 The Nature of Staffing
Chapter 1: Staffing Models and Strategy

Staffing Models and Strategy
CHAPTER ONE Staffing Models and Strategy Screen graphics created by: Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region

Staffing Organizations Model
Vision and Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management

Chapter Outline Nature of Staffing Staffing Models Staffing Models
The Big Picture Definition of Staffing Implications of Definition Staffing System Examples Staffing Models Staffing Quantity: Levels Staffing Quality: Person/Job Match Staffing Quality: Person/Organization Match Staffing Models Staffing System Components Staffing Organizations Staffing Strategy Staffing Levels Staffing Quality Staffing Ethics Plan for Book

The Big Picture Organizations are combinations of physical, financial, and human capital Human capital Knowledge, skills and abilities of people Their motivation to do the job Scope of human capital Employee costs are over 25% of revenues for most organizations Organizations that capitalize on human capital have a strategic advantage over their competitors

Nature of Staffing Definition Implications of definition
“Process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness” Implications of definition Acquire, deploy, retain Staffing as a process or system Quantity and quality issues Organization effectiveness

Nature of Staffing: Importance to Organizational Effectiveness
Quotes from organization leaders Staffing is absolutely critical to the success of every company Gail Hyland-Savage, COO, Michaelson, Connor, & Bowl The new economy, very much the Internet and the entrepreneurial opportunities it created intensified the competition for outstanding people. Rajat Gupta, Managing Director, McKinsey and Company I think about this in hiring, because our business all comes down to people…In fact, when I’m interviewing a senior job candidate, my biggest worry is how good they are at hiring. I spend at least half the interview on that. Jeff Bezos, CEO, Amazon

Discussion Questions What would be the potential problems with a staffing process in which vacancies were filled: On a lottery basis from among job applicants? On a first come-first hired basis? What would be the advantages of using one of the above processes?

Staffing Models Staffing Quantity: Levels
Staffing Quality: Person/Job Match Staffing Quality: Person/Organization Match Staffing System Components Staffing Organizations

Exh. 1.2: Staffing Quantity
Projected Staffing Requirements Overstaffed Fully Staffed Understaffed Compare Projected Staffing Availabilities

Exh. 1.3: Person/Job Match Job HR Outcomes Person Attraction
Requirements Rewards Attraction Performance Retention Attendance Satisfaction Other HR Outcomes Match Impact Person KSAOs Motivation

Concepts: Person/Job Match Model
Jobs are characterized by their requirements and rewards Individuals are characterized via qualifications (KSAOS) and motivation Likely degree of fit between job characteristics and person Implied consequences for every match Concepts are not new Matching process involves dual match KSAOs to requirements Motivation to rewards Job requirements expressed in terms of both Tasks involved KSAOs necessary for performance of tasks Job requirements often extend beyond task and KSAO requirements

Exh. 1.4: Person/Organization Match
Organization Values New Job Duties Multiple Jobs Future Jobs Job Requirements Rewards Attraction Performance Retention Attendance Satisfaction Other HR Outcomes Match Impact Person KSAOs Motivation

Concepts: Person/Organization Match Model
Organizational culture and values Norms of desirable attitudes and behaviors for employees New job duties Tasks that may be added to target job over time “And other duties as assigned “ Multiple jobs Flexibility concerns - Hiring people who could perform multiple jobs Future jobs Long-term matches during employment relationship

Discussion Questions Would it be desirable to hire people only according to the person/job match, ignoring the person/organization match? Why? Would it be desirable to hire people only according to the person/organization match, ignoring the person/job match? Why?

Exh. 1.5: Staffing System Components
Applicant (Person) Organization (Job) Employment (decision making and final match) Selection (assessment and evaluation) Recruitment (identification and attraction)

Exh. 1.6: Staffing Organizations Model

Components of Staffing Organizations Model
Organizational strategy Mission and vision Goals and objectives HR strategy Involves key decisions about size and type of workforce to be Acquired Trained Managed Rewarded Retained May flow from organizational strategy and/or May directly influence formulation of organization strategy

Components of Staffing Organizations Model (continued)
Staffing strategy An outgrowth of the interplay between organization and HR strategy Involves key decisions regarding acquisition, deployment, and retention of organization’s workforce Guide development of recruitment, selection, and employment programs Support activities Serve as foundation for conduct of core staffing activities Core staffing activities Focus on recruitment, selection, and employment of workforce Staffing and retention system management

What is Staffing Strategy?
Definition Requires making key decisions about acquisition, deployment, and retention of a company’s workforce Involves making 13 key decisions Decisions focus on two areas Staffing levels Staffing quality

Exh. 1.7: Strategic Staffing Decisions
Staffing Levels Acquire or develop talent Lag or lead system External or internal hiring Core or flexible workforce Hire or retain National or global Attract or relocate Overstaff or understaff Hire or acquire Staffing Quality Person/Job or Person/Organization match Specific or general KSAOs Exceptional or acceptable workforce quality Active or passive diversity

Plan of the Course & the Book
Part 1: Nature of Staffing (Ch. 1) Part 2: Support Activities (Ch. 2, 3, 4) Part 3: Staffing Activities: Recruitment (Ch. 5, 6) Part 4: Staffing Activities: Selection (Ch. 7, 8, 9, 10) Part 5: Staffing Activities: Employment (Ch. 11, 12) Part 6: Staffing System & Retention Management (Ch. 13, 14)

Ethical Issues Issue 1 Issue 2
As a staffing professional in the human resources department or as the hiring manager of a work unit, explain why it is so important to represent the organization’s interests, and what are some possible consequences of not doing so? Issue 2 One of the strategic staffing choices is whether to pursue workforce diversity actively or passively. First suggest some ethical reasons for the active pursuit of diversity, and then suggest some ethical reasons for a more passive approach.

Part 2 Support Activities
Chapter 2: Legal Compliance Chapter 3: Planning Chapter 4: Job Analysis McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Legal Compliance CHAPTER TWO Screen graphics created by:
Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region

Chapter Outline The Employment Relationship Laws and Regulations
EEO/AA Laws: General Provisions and Enforcement EEO/AA Laws: Specific Staffing Provisions EEO/AA and Best Practices Other Staffing Laws Legal Issues in Remainder of Book

The Employment Relationship
Employer-employee Most prevalent form of employment relationship Involves an agreement between employer and employee on terms and conditions of employment Results in an employment contract Independent contractors Are not considered employees, in a legal sense, of employer Temporary employees Do not have special legal stature

Terms and conditions (employment contract)
Exh. 2.1: Matching Process, Employment Contract, and Employment Process Employer (job) Requirements Rewards Offer and agree Establish Modify Terminate Employment relationship Terms and conditions (employment contract) Employee (person) KSAOs Motivation Offer and agree

Laws and Regulations Need for laws and regulations
Balance of power Protection of employees Protection of employers Exh. 2.2: Sources of Laws and Regulations Common law Constitutional law Statutory law Executive order Agencies

EEO / AA Laws: General Provisions and Enforcement
Exh. 2.3: Major Federal/AA Laws: General Provisions Civil Rights Act (1964, 1991) Age Discrimination in Employment Act (1967) Americans With Disabilities Act (1990) Rehabilitation Act (1973) Executive Order (1965) Enforcement EEOC OFCCP

Disparate Treatment Involves allegations of intentional discrimination where employer knowingly discriminated on basis of specific characteristics Evidence May be direct May consist of a mixed motive May be inferred from situational factors 1. Person belongs to a protected class 2. Person applied for, and was qualified for, a job employer was trying to fill 3. Person was rejected despite being qualified 4. Position remained open and employer continued to seek applicants as qualified as person rejected

Disparate / Adverse Impact
Focuses on effect of employment practices, rather than on motive or intent underlying them As a result of a protected characteristic, people are adversely affected by an employment practice Evidence -- Involves use of statistics Exh. 2.5: Types of Disparate Impact Statistics Applicant flow statistics Four-fifth’s rule - An employment practice has disparate impact if hiring rate for minority group is less than four-fifths (or 80%) of hiring rate for majority group Stock statistics Concentration statistics

Types of Discrimination
Disparate Treatment - Yes - Member of protected group - Show BFOQ - Reason a pretext - Compensatory/punitive - McDonnell Douglas v. Green Hopkins v. Price Waterhouse - No - Statistical disparity - Show job relatedness - Other ways exist - Equitable relief - Griggs v. Duke Power Wards Cove v. Atonio Disparate Impact - Show intent? - Prima facie case - Employer’s defense - Plaintiff’s rebuttal - Damages - Key litigation

Litigation Process - EEOC
Disparate treatment Disparate impact Show intent? Yes No Prima facie case Disparate treatment - intentional practice Disparate impact - effect of practice Employer’s rebuttal Nondiscriminatory reason(s) for practice or show BFOQ Practice job-related and consistent with business necessity Plaintiff’s rebuttal Reason is a pretext for discrimination Practice not job-related; employer will not adopt practice causing less adverse impact Remedies Consent decree; compensatory and punitive damages Consent decree; equitable relief, i.e. back pay

Enforcement by EEOC: Initial Charge and Conciliation
Charge filed Investigation to determine “reasonable cause” If “reasonable cause” found, conciliation is pursued Voluntary settlement process Preferred method of settlement If EEOC decides not to pursue a claim, a “right to sue” letter is issued to complaining party Complementing conciliation is mediation Neutral, third-party mediates dispute to obtain agreement to resolve dispute

Litigation and Remedies: Exh. 2.7: Basic Litigation Process - EEOC

Enforcement by OFCCP Enforcement mechanisms differ from those of EEOC
Covered employers required to develop and implement written AA plans Enforcement involves Off-site desk audits/reviews of employers’ records and AA plans On-site visits/compliance reviews of employers’ AA plans Employers found in noncompliance urged to change practices through conciliation If conciliation is unsuccessful, employers subject to penalties affecting their status as federal contractors

EEO / AA Laws: Specific Staffing Provisions
Unlawful employment practices Establishment of disparate impact Disparate treatment Mixed motives Bona fide occupational qualification (BFOQ) Testing Test score adjustments Seniority or merit systems Employment advertising Preferential treatment and quotas Civil Rights Acts (1964, 1991)

Prohibited age discrimination BFOQ Factors other than age Seniority systems Employment advertising Age Discrimination in Employment Act (1967)

Prohibited discrimination Definition of disability - Physical and mental impairments substantially limiting a major life activity EEOC clarifications 1. Impairment - “A physiological disorder affecting one or more of a number of body systems or a mental or psychological disorder.” 2. Expanded major life activities include “sitting, standing, lifting, and mental and emotional processes such as thinking, concentrating, and interacting with others.” 3. Whether an impairment is substantially limiting depends on its nature and severity, duration or expected duration, and its permanency or long-term impact. 4. To be substantially limiting, impairment must prevent/significantly restrict a person from performing a class or broad range of jobs in various classes. Americans With Disabilities Act (1990)

Qualified individual with a disability Essential job functions Reasonable accommodation and undue hardship Selection of employees Medical exams for job applicants and employees Affirmative action Americans With Disabilities Act (1990)

Prohibited discrimination Affirmative action Rehabilitation Act (1973) Prohibited discrimination Affirmative action Executive Order (1965)

EEO / AA Best Practices: Criteria
Complies with the law Promotes EEO and addresses one or more barriers that adversely affect EEO Manifests management commitment and accountability Ensures management and employee communication Produces noteworthy results Does not cause or result in unfairness

EEO / AA Best Practices: Examples
SPLENDID Study Plan Lead Encourage Notice Discussion Inclusion Dedication Exh. 2.9: Examples of EEO Program Best Practices

Other Staffing Laws: Immigration Reform and Control Act (1986)
Purpose To prohibit employment of unauthorized aliens To provide civil and criminal penalties for violations Prohibited discrimination Employment verification system -- I-9 form Employer must verify individual is not an unauthorized alien and is legally eligible for employment Individuals must offer proof of identity Temporary foreign workers Enforcement Enforced by Department of Justice Noncompliance may result in fines up to $10,000

Other Staffing Laws: Employee Polygraph Protection Act (1988)
Purpose Prevent most private employers from using a polygraph on job applicants or employees Prohibited practices Requiring applicants or employees to take a polygraph Using results of a polygraph for employment decisions Discharging or disciplining individuals for refusal to take a polygraph Examples of instances where polygraph may be used Enforcement Enforced by Department of Labor Noncompliance may result in fines up to $10,000

Other Staffing Laws: Fair Credit Reporting Act (1970)
Purpose Regulates organization’s acquisition and use of consumer reports on job applicants Required compliance Before obtaining a report, organization must Give applicant notice in writing a report may be obtained Obtain written authorization from applicant If an “adverse action” is taken, organization must Notify (written, oral, electronic) applicant of adverse action Provide information of consumer reporting agency to applicant Provide notice of applicant’s rights to applicant Enforcement Enforced by Federal Trade Commission Noncompliance may result in fines up to $1,000

Other Staffing Laws: State and Local Laws
EEO / AA laws Often patterned after federal laws Basic provisions vary from state to state Often provide protections beyond those contained in federal laws and regulations Other state laws Employment-at-will Workplace torts Examples of other covered areas Criminal record inquiries by employer, polygraph and “honesty” testing, drug testing, AIDS testing, employee access to personnel records

Other Staffing Laws: Civil Service Laws and Regulations
Merit principles and staffing practices Merit principles relevant to staffing To recruit, select, and promote employees on the basis of their KSAOs To provide for fair treatment of applicants and employees without regard to political affiliation, race, color, national origin, sex, religion, age, or handicap To protect privacy and constitutional rights of applicants and employees as citizens To protect employees against coercion for partisan political purposes Principles codified in civil service laws and regulations

Other Staffing Laws: Civil Service Laws and Regulations (continued)
Comparisons with private sector Notable differences exist between public and private sectors Examples of public sector staffing practices Open announcement of all vacancies, along with content of selection process to be followed Large numbers of applicants due to applications being open Legal mandate to test applicants only for KSAOs directly job-related Limits on discretion in final hiring process, such as number of finalists, ordering of finalists, and AA considerations Rights of applicants to appeal hiring decision, testing process, or actual test content and method

Legal Issues in Remainder of Book
Exhibit 2.10: Legal Issues Covered in Other Chapters

Ethical Issues Issue 1 Assume that you’re the staffing manager in a company that informally, but strongly, discourages you and managers from hiring people with disabilities. The company’s rationale is that people with disabilities are unlike to be high performers or long term employees, and are costly to train, insure, and integrate into the work unit. What is your ethical assessment of the company’s stance; do you have an ethical obligation to try to change the stance, and if so, how might you go about that?

Ethical Issues Issue 2 Assume the company you work for practices strict adherence to the law in its relationships with employees and job applicants. The company calls it “staffing by the book.” But beyond that, it feels that “anything goes” in terms of tolerated staffing practices. What is your assessment of this approach?

Planning CHAPTER THREE Screen graphics created by:
Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter Outline External Influences Human Resource Planning
Economic Conditions Labor Markets Labor Unions Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities External and Internal Environmental Scanning Reconciliation and Gaps Action Planning Staffing Planning Staffing Planning Process Core Workforce Flexible Workforce Legal Issues AAPs Legality of AAPs Diversity Programs EEO and Temporary Workers

Exh. 3.1: Examples of External Influences on Staffing
Economic Conditions Economic expansion and contraction Job growth and job opportunities Internal labor market mobility Turnover rates Labor Markets Labor demand: Employment patterns, KSAOs sought Labor supply: Labor force, demographic trends, KSAOs available Labor shortages and surpluses Employment arrangements Labor Unions Negotiations Labor contracts: Staffing levels, staffing quality, internal movement Grievance systems

General Economic Conditions, Job Growth, HR Movement Impacts
Product markets Labor markets Inflation Interest rates Foreign exchange rates Government regulations Job Growth Positive = Expansion Neutral = Stagnation Negative = Contraction HR Movement Impacts New labor force entrants Current labor force Unemployed Employed Promotion Transfer Demotion New hires Internal labor market Exit Out of labor force To new job

Labor Markets: Demand for Labor
Employment patterns Demand for labor is a derived demand Job growth projections Employment growth projections KSAOs sought KSAO requirements Education levels Manufacturing sector - Survey of skill deficiencies Managerial skills - Critically required skills

Labor Markets: Supply of Labor
Trends in supply of labor Quantity of labor - Exh. 3.2: Labor Force Statistics Labor force trends relevant to staffing Growth KSAOs Demographics Other trends ??? KSAOs available Educational attainment Literacy Motivation

Labor Markets: Other Issues
Labor shortages and surpluses “Tight” labor markets “Loose” labor markets Employment arrangements Full-time vs. part-time Regular or shift work Alternative employment arrangements Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers

Labor Unions Trends in union membership
Percentage of labor force unionized Private sector unionization rate Public sector unionization rate Contract clauses affecting staffing Impacts on staffing “Spillover effects”

Labor Unions: Contract Clauses Affecting Staffing
Management rights Jobs and job structure External staffing Internal staffing Job posting Lines of movement Seniority Grievance procedure Guarantees against discrimination

What is Human Resource Planning (HRP)?
Involves activities to Forecast an organization’s Labor demand -- Requirements Internal labor supply -- Availabilities Compare projections to determine employment gaps Develop action plans to addressing the gaps Staffing planning

Overview: Human Resource Planning
Process and example Initial decisions Forecast HR requirements Forecast HR availabilities External and internal environmental scanning Reconciliation and gaps Action planning

Exh. 3.4: The Basic Elements of Human Resource Planning
(3) Conduct Environmental Scans (1) Forecast Labor Requirements Compare (4) Determine Gaps (5) Develop Action Plans (2) Forecast Labor Availabilities

HRP: Process and Example
1. Determine future HR requirements 2. Determine future HR availabilities 3. Conduct external and internal environmental scanning 4. Reconcile requirements and availabilities - determine gaps 5. Develop action plans to close projected gaps Exh. 3.6: Operational Format and Example for HRP

HRP: Initial Decisions
Comprehensiveness of planning Plan-based HRP Special projects HRP Population-based HRP Planning time frame Job categories and levels Head count - current workforce Ignores scheduled time worked by each employee relative to a full workweek - FTEs Ignores vacancies Roles and responsibilities

HRP: Forecasting HR Requirements
Statistical techniques Exh. 3.6: Examples of Statistical Techniques to Forecast HR Requirements Judgmental techniques “Top-down” approach “Bottom-up” approach

HRP: Forecasting HR Availabilities
Approach Determine head count data for current workforce and their availability in each job category/level See Exh. 3.6 Statistical techniques Markov analysis Exh. 3.8: Use of Markov Analysis to Forecast Availabilities Limitations of Markov analysis

HRP: Forecasting HR Availabilities (continued)
Replacement and Succession Planning Replacement planning Exh. 3.9: Replacement Chart Example Succession planning Exh. 3.10: Succession Plan Example

HRP: External Environmental Scanning
External scanning involves Tracking trends and developments in external environment, Documenting implications for management of human resources, and Ensuring implications receive attention Exh. 3.11: Example of Environmental Scan

HRP: Internal Environmental Scanning
Internal scanning involves Informal discussions with key managers Conducting employee attitude surveys Monitoring key indicators Employee performance Absenteeism Turnover Accidents Identifying nagging personnel problems Assessing managerial attitudes regarding HR

HRP: Reconciliation and Gaps
Phase involves Coming to grips with projected gaps Likely reasons for gaps Assessing future implications Exhibit 3.12: Format and Example for Human Resource Planning (HRP)

HRP: Action Planning Set objectives Generate alternative activities
Assess alternative activities Choose alternative activities

Staffing Planning Process
Staffing objectives Quantitative objectives Exh. 3.14: Setting Numerical Staffing Objectives Qualitative objectives Generate alternative staffing activities Exh. 3.15: Staffing Alternatives to Deal with Employee Shortages and Surpluses Assess and choose alternatives Exh. 3.16: Organizations’ Responses to Staffing Strategies Survey

Exh. 3.14: Staffing Alternatives to Deal with Employee Shortages and Surpluses

Staffing Planning: Core Workforce
Advantages Disadvantages Staffing philosophy Internal vs. external staffing Exh. 3.17: Internal vs. External Staffing EEO / AA practices Applicant reactions Staffing flows Organization staffing flowchart Exh. 3.18: Staffing Flowchart for Medium-Sized Printing Company

Exh. 3.15: Internal vs. External Staffing

Staffing Planning: Flexible Workforce
Advantages Disadvantages Two categories Temporary employees Staffing firms Exh. 3.16: Factors to Consider When Choosing a Staffing Firm Independent contractors

Legal Issues Affirmative Action Plans (AAPs) Legality of AAPs
Exh. 3.20: Example of AAP: Essential Components Affirmative Action Programs Regulations Legality of AAPs Guidelines for AAPs Diversity programs EEO and temporary workers

Does an organization have any ethical responsibility to share with all of its employees the results of its forecasting of HR requirements and availabilities? Does it have any ethical responsibility not to do this? Issue 2 Identify examples of ethical dilemmas an organization might confront when developing an affirmative action plan (AAP).

Job Analysis and Rewards
CHAPTER FOUR Job Analysis and Rewards Screen graphics created by: Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter Outline Types of Jobs Job Requirements JA Competency-Based JA
Overview Job Requirements Matrix Job Descriptions and Job Specifications Collecting Job Requirements Information Competency-Based JA Nature of Competencies Collecting Competency Information Job Rewards Types of Rewards Employee Value Proposition Collecting Job Rewards Information Legal Issues Job Relatedness and Court Cases Essential Job Functions

Types of Jobs Traditional Evolving Flexible Idiosyncratic Team-Based
Exh. 4.1: Terminology Commonly Used in Describing Jobs Evolving Flexible Idiosyncratic Team-Based Classification of teams Staffing implications Extent to which a team member performs one job vs. multiple jobs Degree of task interdependence among team members Telework

Job Requirements Job Analysis: Overview
Definition Process of studying jobs to gather, analyze, synthesize, and report information about job requirements Two major forms Job requirements Specific KSAOs for the job Competency based General KSAOs for all applicants Has different degrees of relevance to staffing activities Support activity for staffing activities Provides foundation for successful staffing systems

Job Requirements Job Analysis
Overview Exh. 4.3: Job Requirements Approach to JA Job requirements matrix Job descriptions and job specifications Collecting job requirements information

Exh. 4.3: Job Requirements Approach to Job Analysis

Job Requirements Matrix
Exh. 4.3: Portion of Job Requirements Matrix for Job of Administrative Assistant Task statements Task dimensions Importance of tasks / dimensions KSAOs KSAO importance Job context

Task Statements Definition
Objectively written descriptions of behaviors or work activities engaged in by employees to perform job Exh. 4.4: Use of Sentence Analysis Technique for Task Statements

Exh. 4.5: Use of Sentence Analysis Technique for Task Statements

Characteristics of Task Statements
Requirements: Task Statements Suggestions: Effectively Writing Task Statements What employee does, using a specific verb at start of statement To whom or what employee does what he/she does What is produced, indicating expected output What materials, tools, procedures, or equipment used Use specific action verbs, having only one meaning Focus on recording tasks, not elements (15-25) Do not include trivial activities Ensure list of tasks is content valid and reliable Analysts should include manager and an incumbent Accuracy of statements cannot be evaluated against external criterion

Task Dimensions Definition Characteristics
Involves grouping sets of task statements into dimensions, attaching a name to each dimension Other terms -- “duties,” “accountability areas,” “responsibilities,” and “performance dimensions” Characteristics Creation is optional Many different grouping procedures exist Guideline - 4 to 8 dimensions Grouping procedure should be acceptable to organizational members Empirical validation against external criterion is not possible

Importance of Tasks/Dimensions
Involves an objective assessment of importance Two decisions Decide on attribute to be assessed in terms of importance Decide whether attribute will be measured in categorical or continuous terms Exh. 4.5: Examples of Ways to Assess Task/Dimension Importance Relative time spent Percentage (%) time spent Importance to overall performance Need for new employee training

KSAOs What are KSAOs? KSAO importance Job context
Knowledge - Exh. 4.6: Knowledges Contained in O*NET Skill - Exh. 4.7: Skills Contained in O*NET Ability - Exh. 4.8: Abilities Contained in O*NET Other Characteristics - Exh. 4.9: Examples of Other Job Requirements KSAO importance Exh. 4.10: Examples of Ways to Assess KSAO Importance Job context Exh. 4.11: Job Context Contained in O*NET

Job Descriptions and Job Specifications
Describes tasks, task dimensions, importance of tasks / dimensions, and job context Includes Job family, job title, job summary Task statements and dimensions Importance indicators Job context indicators Date conducted Job specifications Describes KSAOs Exh. 4.12: Example of Combined Job Description / Specification

Collecting Job Requirements Information
Methods Sources to be used Job analysis process

Collecting Job Requirements Information: Methods
Prior information Observation Interviews Questionnaire Combined methods Criteria for choice of methods Exh. 4.13: Criteria for Guiding Choice of JA Methods

Collecting Job Requirements Information: Sources
Job analyst Job incumbents Supervisors SMEs Combined sources

Collecting Job Requirements Information: JA Process
Purpose Scope Internal staff or consultant - See Exh. 4.14 Organization and coordination Communication Work flow and time frame Analysis, synthesis, and documentation Maintenance of system Example of JA process - See Exh. 4.15

Competency-Based Job Analysis
Nature of competencies Competency example Organization usage Collecting competency information

What is a Competency? Definition Similarities to KSAOs
An underlying characteristic of an individual contributing to Job or role performance and Organizational success Similarities to KSAOs Differences between competencies and KSAOs May contribute to success on multiple jobs Contribute not only to job performance but also to organizational success

Exh. 4.16: Examples of Competencies

Organization Usage Organizations are experimenting with
Developing competencies and competency models and Using them as underpinnings of several HR applications Three strategic HR reasons for doing competency modeling Create awareness and understanding of need for change in business Enhance skill levels of workforce Improve teamwork and coordination Emphasis -- Establishing general competencies

Collecting Competency Information
Techniques and processes are in their infancy General competencies at the organizational /strategic level are established by top management Guidelines for establishing general competency requirements Organization must establish its mission and goals prior to determining competency requirements Should be important at all job levels Should have specific, behavioral definitions, not just labels

Job Rewards Exh. 4.17—Extrinsic rewards Exh. 4.18—Intrinsic rewards
Direct compensation: base pay and variable pay Indirect compensation: benefits Hours of work Career advancement Job security Exh. 4.18—Intrinsic rewards

Job Rewards: Collecting Information
Within the organization Interviews with employees Surveys with employees Outside the organization SHRM survey Organizational practices

Legal Issues Job relatedness and court cases Essential job functions
Recommendations -- Establishing job-related nature of staffing practices Essential job functions What are essential functions? P. 190 Evidence of essential functions - P. 190 Role of job analysis - See Exh. 4.23

Recommendations: Establishing Job-Related Nature of Staffing Practices
Job analysis must be performed and must be for the job for which the selection instrument is to be utilized Analysis of job should be in writing Job analysis should describe in detail the procedure used Job data should be collected from a variety of current sources by knowledgeable job analysts Sample size should be large and representative of jobs for which selection instrument is used Tasks, duties, and activities should be included in analysis Most important tasks should be represented in selection devise Competency levels of job performance for entry-level jobs should be specified Knowledge, skills, and abilities should be specified, particularly if content validation model is followed

It has been suggested that “ethical conduct” be formally incorporated as a general competency requirement for any job within the organization. Discuss the pros and cons of this suggestion. Issue 2 Assume you are assisting in the conduct of job analysis as an HR department representative. You have encountered several managers who want to delete certain tasks and KSAOs from the formal job description having to do with employee safety, even though they clearly are job requirements. How should you handle this situation?

Part 3 Staffing Activities: Recruitment
Chapter 5: External Recruitment Chapter 6: Internal Recruitment McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Staffing Activities: External Recruitment
CHAPTER FIVE Staffing Activities: External Recruitment Screen graphics created by: Jana F. Kuzmicki, PhD Troy State University-Florida and Western Region

Chapter Outline Recruitment Planning Strategy Development Searching
Organizational Issues Administrative Issues Recruiters Strategy Development Open vs. Targeted Recruitment Recruitment Sources Choice of Sources When to Look Searching Communication Message Communication Medium Applicant Reactions Transition to Selection Legal Issues Definition of Job Applicant Targeted Recruitment Electronic Recruitment Job Advertisements Fraud and Misrepresentations

Recruitment Planning Organizational issues Administrative issues

Recruitment Planning: Organizational Issues
In-house vs. external recruitment agency Many companies do recruiting in-house Recommended approach for large companies Smaller companies may rely on external recruitment agencies Individual vs. cooperative recruitment alliances Cooperative alliances involve arrangements to share recruitment resources Centralized vs. decentralized recruitment

Recruitment Planning: Administrative Issues
Requisitions Exh. 5.1: Personnel Requisition Number of contacts Yield ratio - Relationship of applicant inputs to outputs at various decision points Types of contacts Qualifications to perform job must be clearly established Consideration must be given to job search and choice process used by applicants

Exh. 5.1: Personnel Requisition

Recruitment Planning: Administrative Issues (continued)
Recruitment budget Exh. 5.2: Example of a Recruitment Budget for 500 New Hires Development of a recruitment guide Exh. 5.3: Recruitment Guide for Director of Claims Process flow and record keeping Selecting recruiters Training recruiters Rewarding recruiters

Considerations Related to Recruiters: Selection
Desirable characteristics of recruiters Strong interpersonal skills Knowledge about company, jobs, and career-related issues Technology skills Enthusiasm Various sources of recruiters HR professionals Line managers Employees

Considerations Related to Recruiters: Training and Rewards
Traditional areas of training Interviewing skills, job analysis, interpersonal skills, laws, forms and reports, company and job characteristics, and recruitment targets Nontraditional areas of training Technology skills, marketing skills, working with other departments, and ethics Rewards Performance must be monitored and rewarded Effective recruiter behaviors End results

Strategy Development Open vs. targeted recruitment Recruitment sources
Choice of sources When to look

Open vs. Targeted Recruitment
Open recruitment Targeted recruitment Key KSAO shortages Workforce diversity gaps Passive job seekers Former military personnel Employment discouraged Reward seekers Former employees Reluctant applicants

Recruitment Sources Unsolicited Employee referrals and networks
Advertisements Recruiting online Colleges and placement offices Employment agencies Executive search firms Professional associations and meetings State Employment services Outplacement services Community agencies Job fairs Co-ops and internships

Approaches to Recruiting Online
Job postings on Internet job boards Searching Web-based databases Exh. 5.4: List of Recruiting Web Sites Job postings on organization’s Web site Mining databases

Innovative Recruitment Sources
Religious organizations Interest groups Realtors Senior networks

Strategy Development: Criteria Affecting Choice of Sources
Sufficient quantity and quality Cost Past experience with source Impact on HR outcomes Satisfaction Performance Retention

Effectiveness of Recruitment Sources
Involves assessing impact of sources on increased employee satisfaction, performance, and retention Research results Most effective Referrals, job postings, rehiring of former employees Least effective Newspaper ads, employment agencies

Strategy Development: When to Look
Lead time concerns Goal -- Minimize delay in filling vacancies Effective planning requirements Establishment of priorities for job openings Prepared recruiters Time sequence concerns Staffing flowchart Time-lapse statistics

Searching: Communication Message
Job requirements and rewards matrices Type of messages Realistic recruitment message -- RJP Exh. 5.5: RJP for Elementary School Teachers Branding Targeted messages Choice of messages Nature of labor market Vacancy characteristics Applicant characteristics Traditional message Job applicant may be given relatively little concrete or accurate info. Unlimited growth opportunities Realistic recruitment message RJP - Job applicants are given a “vaccination” by being told what the actual job is really like Tells it like it is Great deal of research has been conducted on effectiveness of RJPs

Searching: Communication Medium
Recruitment brochures Videos and videoconferencing Advertisements Types of ads Classified ad Classified display ad Display ad Online ad Telephone messages Organizational Web sites Radio

Applicant Reactions Reactions to recruiters
Influence of recruiter vs. job characteristics Influence of recruiter on attitudes and behaviors Demographics of recruiters Influential recruiter behaviors Reactions to recruitment process Relationship of screening devices to job Delay times in recruitment process Funding of recruitment process Credibility of recruiter during recruitment process

Transition to Selection
Involves making applicants aware of Next steps in hiring process Selection methods used and instructions Expectations and requirements

Legal Issues Definition of job applicant Affirmative Action Programs
Definition according to EEOC and OFCCP Importance of establishing written application policies Affirmative Action Programs Guidelines of OFCCP for recruitment actions Electronic recruitment Usage may create artificial barriers to employment opportunities Job advertisements Fraud and misrepresentation

Many organizations adopt a targeted recruitment strategy. For example, Home Depot has targeted workers 50 and above in its recruitment efforts, which include advertising specifically in media outlets frequented by older individuals. Other organizations target recruitment messages at women, minorities, or those with desired skills. Do you think targeted recruitment systems are fair? Why or why not? Issue 2 Most organizations have in place job boards on their web page where applicants can apply for jobs online. What ethical obligations, if any, do you think organizations have to individuals who apply for jobs online?

Internal Recruitment CHAPTER SIX Screen graphics created by:

Chapter Outline Recruitment Planning Strategy Development Searching
Organizational Issues Administrative Issues Strategy Development Closed, Open and Targeted Recruitment Recruitment Sources Choice of Sources Searching Communication Message Communication Medium Applicant Reactions Transition to Selection Legal Issues Affirmative Action Programs Regulations Bona Fide Seniority Systems The Glass Ceiling

Recruitment Planning Organizational issues Administrative issues

Recruitment Planning: Organizational Issues
Mobility paths Traditional mobility paths: Exh. 6.1 Innovative mobility paths: Exh. 6.2 Mobility policies Development Eligibility criteria

Exh. 6.1: Traditional Mobility Paths

Exh. 6.2: Innovative Mobility Paths

Examples: Ways to Make Work Meaningful
Alternative reward systems Team building Counseling Alternative employment

Characteristics of a Mobility Path Policy
1. Intent of policy is clearly communicated 2. Policy is consistent with philosophy and values of top management 3. Scope of policy is clearly articulated 4. Employees’ responsibilities and opportunities for development are clearly defined 5. Supervisors’ responsibilities for employee development are clearly stated 6. Procedures are clearly described 7. Rules regarding compensation and advancement are included 8. Rules regarding benefits and benefit changes are included

Recruitment Planning: Administrative Issues
Requisitions Coordination between internal and external efforts Establish internal staffing specialist positions (placement/classification professionals) to ensure consideration of internal candidates Create policies specifying number and types of candidates sought both internally and externally Budget Recruitment Guide Exh. 6.3: Internal Recruitment Guide

Strategy Development Closed, open, and targeted recruitment
Recruitment sources Choice of sources

Strategy Development: Closed Recruitment
Definition Employees are not informed of job vacancies Exh. 6.4: Closed Internal Recruitment System Advantages Disadvantages

Exh. 6.4: Closed Internal Recruitment System
Manager notifies HR of vacancy HR searches files for candidates List of candidates given by HR to manager Manager interviews candidates Position filled by manager

Strategy Development: Open Recruitment
Definition Employees are informed of job vacancies Exh. 6.5: Open Internal Recruitment System Advantages Disadvantages

Exh. 6.5: Open Internal Recruitment System
Manager notifies HR of vacancy HR posts job opening HR receives bids from interested applicants HR screens candidates List of candidates given by HR to managers Manager interviews candidates Manager fills position

Strategy Development: Targeted Recruitment
Definition Both open and closed steps are followed at same time Advantages Thorough search is conducted People have equal opportunity to apply for postings Hidden talent is uncovered Disadvantages Very time-consuming and costly process

Criteria for Choice of System
A closed system is the least expensive, but may lead to high legal costs if minorities and women do not have equal access to jobs Managers want a person to start work immediately when they have a vacancy; a closed system offers the quickest response An open system is more likely than a closed system to identify more candidates, and hidden talent is likely to be overlooked Some openings may require a narrow and specialized KSAO set A closed system may be able to identify these people quickly An open system may be cumbersome An open system may motivate migration of employees from critical and difficult to fill jobs Whatever system is specified in a labor contract must be followed since a contract is a legally binding agreement An open system enhances perceptions of fairness

Strategy Development: Recruitment Sources
Job posting Exh. 6.6: Example of Bidding Form Skills inventory Exh. 6.7: Sample Elements in Skills Inventory Nominations Employee referral In-house temporary pools Replacement and succession plans Intranet and intraplacement

Strategy Development: Criteria Affecting Choice of Sources
Quantity of labor Quality of labor Budget constraints Contractual or legal obligations

Strategy Development: When to Look
Lead time concerns Difference between internal and external recruitment Essential an organization do HR planning along with internal recruitment Time sequence concerns Coordination between internal and external recruitment activities is essential Issues Time frame of internal search Whether external recruitment can be done concurrently with internal recruitment Who will be selected if both an internal and external candidate are identified with relatively equal KSAOs

Searching: Communication Message
Job requirements and rewards matrices Type of messages Realistic recruitment message - RJP Targeted messages Branded Traditional message Job applicant may be given relatively little concrete or accurate info. Unlimited growth opportunities Realistic recruitment message RJP - Job applicants are given a “vaccination” by being told what the actual job is really like Tells it like it is Great deal of research has been conducted on effectiveness of RJPs

Searching: Communication Medium
Job posting Other written documents Brochures Videocassettes Diskettes Potential supervisors and peers Informal systems

Applicant Reactions Minimal research regarding reactions of applicants to internal recruitment process Perceived fairness Distributive justice - Perceived fairness of actual decision Procedural justice - Perceived fairness of process (policies and procedures)

Transition to Selection
Involves making applicants aware of Next steps in hiring process Selection methods used and instructions Expectations and requirements

Legal Issues Affirmative Action Programs Regulations
Suggestions to ensure equal opportunity for females and minorities Bona fide seniority systems Law permits use of seniority systems if they are not the result of an intention to discriminate Issues Law does define term “seniority system” Absent discriminatory intent, a seniority system is likely to be bona fide, even if it causes adverse impact

Legal Issues: Glass Ceiling - Overcoming Barriers
Exh. 6.8: Ways to Improve Advancement for Women and Minorities Examine the organizational culture Drive change through management commitment Foster inclusion Educate and support women in career development Measure for change

Let’s say a company called MDN Inc. is considering two employees for the job of senior manager. An internal candidate, Julie, has been with MDN for 12 years and received very good performance evaluations. The other candidate, Raoul, works for a competitor, and has valuable experience in the product market into which MDN wishes to expand. Do you think MDN has an obligation to hire Julie? Why or why not? Issue 2 Do organizations have an ethical obligation to have a succession plan in place? If no, why not? If so, what is the ethical obligation and to whom is it owed?

Part 4 Staffing Activities: Selection
Chapter 7: Measurement Chapter 8: External Selection I Chapter 9: External Selection II Chapter 10: Internal Selection McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Measurement CHAPTER SEVEN Screen graphics created by:

Chapter Outline Importance and Use of Measures Key Concepts
Measurement Scores Correlation Between Scores Quality of Measures Reliability of Measures Validity of Measures Validation of Measures in Staffing Validity Generalization Collection of Assessment Data Testing Procedures Acquisition of Tests Professional Standards Legal Issues Disparate Impact Statistics Standardization and Validation

Importance and Use of Measures
Methods or techniques for describing and assessing attributes of objects Examples Tests of applicant KSAOs Job performance ratings of employees Applicants’ ratings of their preferences for various types of job rewards

Importance and Use of Measures (continued)
Summary of measurement process (a) Choose an attribute of interest (b) Develop operational definition of attribute (c) Construct a measure of attribute as operationally defined (d) Use measure to actually gauge attribute Results of measurement process Scores become indicators of attribute Initial attribute and its operational definition are transformed into a numerical expression of attribute

Key Concepts Measurement Scores Correlation between scores

Measurement: Definition
Process of assigning numbers to objects to represent quantities of an attribute of the objects Attribute/Construct - Knowledge of mechanical principles Objects - Job applicants

Exh. 7.1: Use of Measures in Staffing
Choose and define attribute General Process Develop measure of attribute Measure attribute Determine number / score Make evaluation Make decision Knowledge of mechanical principles Example: Maintenance Mechanic Develop objective paper-and-pencil test Administer test to job applicants Determine test scores using scoring key Evaluate scores relative to job requirements Make hiring decisions

Measurement: Standardization
Involves Controlling influence of extraneous factors on scores generated by a measure and Ensuring scores obtained reflect the attribute measured Properties of a standardized measure Content is identical for all objects measured Administration of measure is identical for all objects Rules for assigning numbers are clearly specified and agreed on in advance

Measurement: Levels Nominal Ordinal Interval Ratio
A given attribute is categorized and numbers are assigned to categories No order or level implied among categories Ordinal Objects are rank-ordered according to how much of attribute they possess Represents relative differences among objects Interval Objects are rank-ordered Differences between adjacent points on measurement scale are equal in terms of attribute Ratio Similar to interval scales - equal differences between scale points for attribute being measured Have a logical or absolute zero point

Measurement: Differences in Objective and Subjective Measures
Objective measures Rules used to assign numbers to attribute are predetermined, communicated, and applied through a system Subjective measures Scoring system is more elusive, often involving a rater who assigns the numbers Research results

Scores Definition Central tendency and variability Percentiles
Measures provide scores to represent amount of attribute being assessed Scores are the numerical indicator of attribute Central tendency and variability Exh. 7.2: Central Tendency and Variability: Summary Statistics Percentiles Percentage of people scoring below an individual in a distribution of scores Standard scores

Correlation Between Scores
Scatter diagrams Used to plot the joint distribution of the two sets of scores Exh. 7.3: Scatter Diagrams and Corresponding Correlations Correlation coefficient Value of r summarizes both Strength of relationship between two sets of scores and Direction of relationship Values can range from r = -1.0 to r = 1.0 Interpretation - Correlation between two variables does not imply causation between them Exh. 7.4: Calculation of Product-Movement Correlation Coefficient

Exh. 7.3: Scatter Diagrams and Corresponding Correlations

Significance of the Correlation Coefficient
Practical significance Refers to size of correlation coefficient The greater the degree of common variation between two variables, the more one variable can be used to understand another variable Statistical significance Refers to likelihood a correlation exists in a population, based on knowledge of the actual value of r in a sample from that population Significance level is expressed as p < value Interpretation -- If p < .05, there are fewer than 5 chances in 100 of concluding there is a relationship in the population when, in fact, there is not

Quality of Measures Reliability of measures Validity of measures
Validity of measures in staffing Validity generalization

Quality of Measures: Reliability
Definition: Consistency of measurement of an attribute A measure is reliable to the extent it provides a consistent set of scores to represent an attribute Reliability of measurement is of concern Both within a single time period and between time periods For both objective and subjective measures Exh. 7.6: Summary of Types of Reliability

Exh. 7.6: Summary of Types of Reliability

Measurement error Actual score = true score + error Deficiency error: Occurs when there is failure to measure some aspect of attribute assessed Contamination error: Represents occurrence of unwanted or undesirable influence on the measure and on individuals being measured Exh Sources of Contamination Error and Suggestions for Control

Procedures to calculate reliability estimates Coefficient alpha Should be least .80 for a measure to have an acceptable degree of reliability Interrater agreement Minimum level of interrater agreement - 75% or higher Test-Retest reliability Concerned with stability of measurement Level of r should range between r = .50 to r = .90 Intrarater agreement For short time intervals between measures, a fairly high relationship is expected - r = .80 or 90%

Implications of reliability Standard error of measurement Since only one score is obtained from an applicant, the critical issue is how accurate the score is as an indicator of an applicant’s true level of knowledge Relationship to validity Reliability of a measure places an upper limit on the possible validity of a measure A highly reliable measure is not necessarily valid Reliability does not guarantee validity - it only makes it possible

Quality of Measures: Validity
Definition: Degree to which a measure truly measures the attribute it is intended to measure Accuracy of measurement Exh. 7.9: Accuracy of Measurement Accuracy of prediction Exh. 7.10: Accuracy of Prediction

Exh. 7.9: Accuracy of Measurement

Exh. 7.10: Accuracy of Prediction

Validity of Measures in Staffing
Importance of validity to staffing process Predictors must be accurate representations of KSAOs to be measured Predictors must be accurate in predicting job success Validity of predictors explored through validation studies Two types of validation studies Criterion-related validation Content validation

Criterion-Related Validation
Components of criterion-related validation Exh. 7.11: Criterion-Related Validation Validation designs Predictive design Concurrent design Exh. 7.12: Concurrent and Predictive Validation Designs

Exh. 7.11: Criterion-Related Validation

Exh. 7.12: Concurrent and Predictive Validation Designs

Content Validation Content validation involves
Demonstrating the questions/problems (predictor scores) are a representative sample of the kinds of situations occurring on the job Criterion measures are not used A judgment is made about the probable correlation between predictors and criterion measures Used in two situations When there are too few people to form a sample for criterion-related validation When criterion measures are not available Exh. 7.14: Content Validation

Exh. 7.14: Content Validation

Validity Generalization
Degree to which validity can be extended to other contexts Contexts include different situations, samples of people and time periods Situation-specific validity vs. validity generalization Exh. 7.16: The Logic of Validity Generalization Distinction is important because Validity generalization allows greater latitude than situation specificity More convenient and less costly not to have to conduct a separate validation study for every situation

Exh. 7.16: The Logic of Validity Generalization

Recommendations for Staffing Practices
1. At a minimum, all predictors should routinely be subject to content validation. 2. When feasible, criterion-related validation studies should be conducted unless there is sufficient validity generalization evidence available to support use of a predictor without prior validation. 3. Any claims of validity or validity generalization that are based on no criterion-related validity studies, or only a small number of them, should be suspect. 4. A predictor’s validity is specific to the criterion against which it was validated, and the predictor’s validity should not be extended to other criteria without validation evidence for those criteria. 5. Organizations should become involved in cooperative arrangements devoted to validation research to explore the extent to which validity may be generalized.

Collection of Assessment Data
Testing procedures Paper and pencil measures PC- and Web-based approaches Applicant reactions Acquisition of tests and test manuals Professional standards

Legal Issues Disparate impact statistics Standardization Validation
Applicant flow statistics Applicant stock statistics Standardization Lack of consistency in treatment of applicants is a major factor contributing to discrimination Example: Gathering different types of background information from protected vs. non-protected groups Example: Different evaluations of information for protected vs. non-protected groups Validation If adverse impact exists, a company must either eliminate it or justify it exists for job-related reasons (validity evidence)

Do individuals making staffing decisions have an ethical responsibility to know measurement issues? Why or why not? Issue 2 Is it unethical for an employer to use a selection measure that has high empirical validity but lacks content validity? Explain.

External Selection I CHAPTER EIGHT Screen graphics created by:

Chapter Outline Preliminary Issues Initial Assessment Methods
Logic of Prediction Nature of Predictors Development of the Selection Plan Selection Sequence Initial Assessment Methods Resumes and Cover Letters Application Blanks Biographical Information Initial Assessment Methods References and Background Checks Handwriting Analysis Literacy Testing Genetic Testing Initial Interview Choice of Methods Legal Issues

Preliminary Issues Logic of prediction Nature of predictors
Development of the selection plan Selection sequence

Logic of Prediction: Past Performance Predicts Future Performance
Previous job(s) Current job Nonjob Past Situations New Situation (job) Attraction Performance Satisfaction Retention Attendance HR Outcomes Person KSAOs Motivation Sample Predict

Nature of Predictors Content
Sign: A predisposition thought to relate to performance (e.g., personality) Sample: Observing behavior thought to relate to performance Criterion: Actual measure of prior performance Form Speed vs. power: How many versus what level Paper / pencil vs. performance: Test in writing or in behavior Objective vs. essay: Much like multiple-choice vs. essay course exam questions Oral vs. written vs. computer: How data are obtained

Development of the Selection Plan: Steps Involved
1. Develop list of KSAOs required for job KSAOs are provided by job requirements matrix 2. For each KSAO, decide if it needs to be assessed in the selection process 3. Determine method(s) of assessment to be used for each KSAO

Exh. 8.3: Selection Sequence
Initial Assessment Method Substantive Discretionary Contingent Applicant Flow Stage Applicants Candidates Finalists Offer Receivers New Hires

Resumes and Cover Letters
Information provided is controlled by applicant Information needs to be verified by other predictors to ensure accuracy and completeness Major issues Large number received by organizations Falsification and misrepresentation of information Lack of research exists related to Validity or reliability Costs Adverse impact

Overview of Application Blanks
Areas covered Educational experience Training Job experience Key advantage -- Organization dictates information provided Major issue -- Information requested should Be critical to job success and Reflect KSAOs relevant to job Sample application blank - Exh. 8.4

Sample Application for Employment
(Continued)

Sample Application for Employment (cont)

Application Blanks Areas of special interest
Educational requirements Level of education GPA Quality of school Major field of study Extracurricular activities Training and experience requirements Licensing, certification, and job knowledge Weighted application blanks Evaluation --> ŕ = .10 to ŕ = .20

Biographical Information / Biodata
Personal history information of applicant’s background and interests “Best predictor of future behavior is past behavior” Past behaviors may reflect ability or motivation Measures Exh. 8.5: Examples of Biodata Items Exh. 8.6: A Taxonomy of Biodata Items Development of a biodata survey Choose the criterion Identify criterion groups Select items to be analyzed Specify item response alternatives Weight items Cross-validation Develop cutoff scores

Biographical Information: Accomplishment Records
Survey past accomplishments of candidates as they relate to dimensions of work that are part of effective performance Includes written statement of accomplishment, when it took place, any recognition, and verification Emphasis on achievements rather than activities Exh. 8.7: Scoring Key Excerpt for an Accomplishment Record

Evaluation: Biographical Information / Biodata
Test-retest reliability can be high: .77 to .90 Predictive validity moderate: to .37 Issues Generalizability beyond first group? Although predictive validity exists, it is not clear what these inventories assess Falsification can be a big problem Suggestions to reduce faking? Applicant reactions?

Reference Reports: Letters of Recommendation
Problems Inability to discern more-qualified from less-qualified applicants Lack of standardization Why are these of such limited use? Suggestions to improve credibility Use a structured form Use a standardized scoring key Other suggestions?

Reference Reports: Reference Checks
Approach involves verifying applicant’s background via contact with Prior immediate supervisor(s) or HR department of current of previous companies Roughly 8 of 10 companies conduct reference checks Problems Same as problems with letters of recommendation Reluctance of companies to provide requested information due to legal concerns Exh. 8.9: Sample Reference Check

Reference Reports: Background Testing
Method involves assessing reliability of applicants’ behavior, integrity, and personal adjustment Type of information requested Criminal history Credit information Educational history Employment verification Driver license histories Workers’ compensation claims Key issues Limited validity evidence Legal constraints on pre-employment inquiries

Evaluation of Reference Reports
Predictive validity limited: .16 to .26 Validity depends on source providing information HR department, coworker, or relative Supervisors What sources do you think work best? Cost vs. benefit of approach must be considered

Initial Assessment Methods
Handwriting analysis Literacy testing Genetic screening Discuss the value & limits of these methods

Initial Interview Characteristics Video and computer interviews
Begins process of necessary differentiation -- “rough cut” Purpose -- Screen out most obvious cases of person / job mismatches Limitation -- Most expensive method of initial assessment Video and computer interviews Offers cost savings

Evaluation of Initial Interview
Minimal evidence exists regarding usefulness Guidelines to enhance usefulness Ask questions assessing most basic KSAOs Stick to basic, fundamental questions suitable for making rough cuts rather than subjective questions Keep interviews brief Ask same questions of all applicants

Choice of Initial Assessment Methods
Criteria Use Cost Reliability Validity Utility Applicant reactions Adverse impact Evaluate the following Education level GPA Quality of school Major field Extracurricular activity Training & experience Licensing/certification Weighted app. Blanks Biodata Letters of recommendation Reference checks Background testing Resumes, cover letters Initial interviews

Legal Issues Disclaimers - Organization clearly identifies rights it wants to maintain Employment-at-will Verification consent False statement warning Reference checks Preemployment inquiries - PIs Federal laws and regulations EEOC Guide to Preemployment Inquiries ADA regulations State laws and regulations - Exh. 8.11

Legal Issues Bona fide occupational qualifications - BFOQs
Discrimination based on sex, religion, or national origin, but not race or color, is permitted if it can be shown to be a BFOQ “reasonably necessary to the normal operation” of the business Employer justifications Inability to perform Same-sex personal contact Customer preference Pregnancy or fertility

Is it wrong to “pad” one’s résumé with information that, while not an outright lie, is an enhancement? For example, would it be wrong to term one’s job “maintenance coordinator” when in fact one simply emptied garbage cans? Issue 2 Do you think employer have a right to check into applicants’ backgrounds? Even if there is no suspicion of misbehavior? Even if the job poses no security or sensitive risks? Even if the background check includes driving offenses and credit histories?

External Selection II CHAPTER NINE Screen graphics created by:

External Selection II Outline
Substantive Assessment Methods Personality Tests Ability Tests Job Knowledge Tests Performance Tests and Work Samples Integrity Tests Interest, Values, and Preference Inventories Structured Interview Constructing a Structured Interview Assessment for Team and Quality Environments Clinical Assessments Choice of Substantive Methods Discretionary Assessment Methods Contingent Assessment Methods Collection of Assessment Data Legal Issues

Overview of Personality Tests
Historical role of personality tests in selection e.g., MMPI Validity Misuse: intended for identifying psychological disorders Current role of personality tests e.g., role of Big Five Describe behavioral, not emotional or cognitive traits May capture up to 75% of an individual’s personality Big Five factors (Personality Characteristics Inventory etc.) Conscientiousness: persistent, planner, can be counted on Emotional stability: hard to annoy, hard to hurt feelings Extraversion: likes meeting new people, takes charge Openness to experience: likes new ideas, tries new things Agreeableness: forgives easily, sees good side of people Which of the Big 5 most likely to predict performance?

Measures of Personality Tests
Surveys Personal Characteristics Inventory (PCI) Exh. 9.1: Sample Items for PCI NEO Personality Inventory Hogan Personality Inventory (HPI) Projective tests Interviews Assessment of reliability and validity

Predictive Validity of Personality Tests
Big Five factors Conscientiousness (broadly promising) Valid across almost all occupational groups; r = .31 Emotional stability (promising) Valid for many groups especially sales, management, & teaching Extraversion (some promise) Most valid for salespeople Openness to experience (virtually no predictive ability) Agreeableness (virtually no predictive ability) Limitations of using personality tests to predict?

Exh. 9.2: Possible Factors Explaining Importance of Conscientiousness in Predicting Job Performance

Overview of Ability Tests
Definition -- Measures that assess an individual’s capacity to function in a certain way Two types Aptitude - Assess innate capacity to function Achievement - Assess learned capacity to function 15--20% of organizations use ability tests in selection Four classes of ability tests Cognitive: perception, memory, reasoning, verbal, math, expression Psychomotor: thought/body movement coordination Physical: strength, endurance, movement quality Sensory/perceptual: detection & recognition of stimuli Give an example where each ability might predict

Evaluation of Cognitive Ability Tests
Validity approaches .50 Research findings Among the most valid methods of selection Often generalizes across organizations, job types, and types of applicants Can produce large economic gains for organizations and provide major competitive advantage Validity is particularly high for jobs of medium and high complexity but also exists for simple jobs A simple explanation for validity: those with higher cognitive ability acquire and use greater knowledge

Limitations of Cognitive Ability Tests
Concern over adverse impact and fairness of tests Cognitive ability tests are equally accurate predictors of job performance for various racial & ethnic groups, but blacks and Hispanics score lower than whites Why might blacks & Hispanics score lower? Is it OK to use cognitive ability tests if we monitor adverse impact closely? Is it OK to use differential prediction? Applicants’ perceptions Reactions to concrete vs. abstract test items

Other Types of Ability Tests
Psychomotor ability tests Valid predictors for jobs that require such abilities with validity coefficients as high as .50 Physical abilities tests Valid predictors for jobs that require such abilities with validity coefficients as high as .40 to .80 Sensory/perceptual abilities tests Valid predictors for jobs that require such abilities with validity coefficients as high as .40 but may not add to general cognitive ability prediction Note: Increasingly, ability tests are being computer administered

Job Knowledge Tests Two types
Assess knowledge of duties involved in a particular job (i.e., test the knowledge level) Level of experience with, and knowledge about, critical job tasks and tools necessary to perform a job (i.e., test the amount of experience with the knowledge areas) Evaluation Validity can be as much as .45 Higher validities found for complex jobs Job knowledge measures add little to prediction beyond that provided by cognitive ability tests but can help filter out those clearly not qualified

Performance Tests and Work Samples
Definition -- Assess actual performance (e.g., fix a car, teach a class, type a document) Types of tests (should focus on relevant KSAOs) Performance test vs. work sample (all or some) Motor vs verbal work samples (action or thought) High- vs. low-fidelity tests (level of realism) Computer interaction performance tests vs. paper-and-pencil tests including simulations (e.g., The Manager’s Workshop) Situational judgment tests (combinations of above) All the above can have good validity (.50+) & acceptance Discuss potential limitations of each of the above

Integrity Tests Two types Clear purpose / overt
General purpose / veiled purpose Use of integrity tests in selection has grown dramatically during past decade Construct of integrity not well understood Validity can be useful Clear purpose as high as .55 predicting bad behaviors General purpose as high as .32 predicting bad behaviors Can predict performance as well (as high as .30) Why would these predict general performance? Discuss limitations of integrity tests

Interest, Values, and Preference Inventories
Assess activities individuals prefer to do on & off the job; do not attempt to assess ability to do these Not often used in selection Can be useful for self-selection into job types Types of tests Strong Vocational Interest Blank (SVIB) Myers-Briggs Type Inventory (MBTI) Evaluation Unlikely to predict job performance directly May help assess person-organization fit & subsequent job satisfaction, commitment & turnover

Typical Unstructured Interviews
Relatively unplanned and “quick and dirty” Questions based on interviewer “hunches” or “pet questions” to assess applicants Casual, open-ended, or subjective questions Often contains obtuse questions Often contains highly speculative questions Interviewer often unprepared Validity typically very low (.20 at best) Discuss sources of error in unstructured interviews

Structured Interviews
Questions based on job analysis Same questions asked of each candidate Response to each question numerically evaluated Detailed anchored rating scales used to score each response Detailed notes taken, focusing on interviewees’ behaviors Validity may be .30 or better

Structured Interviews (continued)
Situational - Assess applicant’s ability to project his / her behaviors to future situations. Assumes the person’s goals/intentions will predict future behavior (validity averages .35) Experience-based - Assess past behaviors that are linked to prospective job. Assumes past performance will predict future performance (validity averages .28) Note: Individual interviews usually more valid than panel interviews

Constructing a Structured Interview
Consult job requirements matrix Develop the selection plan Exh. 9.14: Partial Selection Plan for Job of Retail Store Sales Associate Develop structured interview plan Exh. 9.15: Structured Interview Questions, Benchmark Responses, Rating Scale, and Question Weights Select and train interviewers Evaluate effectiveness

Assessment for Quality Environments
Companies with TQM missions often seem to ignore selection systems Issues to be addressed in selection process Types of skills may differ Specificity of skills may differ Process of making selection decisions may differ Lack of research on staffing in quality environments Validation of selection process is important

Assessment for Team Environments
Establish steps for selection in team-based environments Determine necessary KSAOs for teamwork Exh. 9.17: Knowledge, Skill, and Ability (KSA) Requirements for Teamwork Interpersonal KSAs Self-management KSAs Example Exh. 9.18: Example Items Assessing Teamwork KSAs Who should make the hiring decision? Critical to ensure proper context is in place

Clinical Assessments Psychologist makes a judgment about suitability of a candidate for a job Typically used for selecting people for middle- and upper-level management positions Judgments based on Interview Personal history form Ability test Personality test Feedback to company -- Narrative description of candidate, with or without a recommendation Can be valid but depends on the psychologist and his/her process Discuss pros and cons of this approach

Discretionary Assessment Methods
Used to separate people who receive job offers from list of finalists (assumes each finalist is considered fully qualified for position) Often very subjective, relying heavily on intuition of decision maker Factors other than KSAOs are evaluated Assess person/organization match Assess motivation level Assess people on relevant organizational citizenship behaviors Should involve organization’s staffing philosophy regarding EEO/AA commitments

Contingent Assessment Methods
“We offer you this job contingent upon ….” Contingent methods not always used Depends on nature of job and legal mandates Might involve confirmation of Degree Valid license Security clearance approval Drug test results Medical exam results

Drug Testing Alcohol & drug abuse costs U.S. $60 billion/year
Drug testing used by over 80% of major companies Characteristics and effectiveness Types of tests: body fluids, hair analysis, pupillary reaction, performance tests U.S. Dept. of Health/Human Services sets guidelines Drug tests can be accurate & reduction of drug use saves money and lives Smoking may be banned at work place but 1/2 of states prohibit off-job smoking discrimination

Example of a Drug Testing Program

Medical Exams Identify potential health risks in job candidates
Must ensure medical exams are required only when a compelling reason exists Ensures people with disabilities unrelated to job performance are not screened out Use is strictly regulated by ADA to ensure disabilities not job related are not screened out Usually lack validity as procedures vary by doctor Not always job related Often emphasize short- rather than long-term health New job-related medical standards are specific, job related, and valid

Legal Issues: Uniform Guidelines on Employee Selection Procedures (UGESP)
General principles Technical standards Documentation of impact and validity evidence Definitions Makes substantial demands of a staffing system Ensures awareness of possibility of adverse impact in employment decisions If adverse impact is found, mechanisms provided to cope with it

Legal Issues: ADA and Drug Testing
Selection under the Americans with Disabilities Act (ADA) General principles Access to job application process Reasonable accommodation to testing Medical examinations Drug testing UGESP Drug testing is permitted to detect illegal drug use and discipline/termination if found is OK

Medical Exams Identifies potential health risks in job candidates
Important to ensure medical exams are required only when a compelling reason exists Ensures people with disabilities unrelated to job performance are not screened out Use is strictly regulated by ADA Lack validity as procedures vary by doctor Not always job related Often emphasizes short- rather than long-term health New approach -- Job-related medical standards

Do you think it’s ethical for employers to select applicants on the basis of questions such as, “Dislike loud music” and “Enjoy wild flights of fantasy,” even if the scales that such items measure have been shown to predict job performance? Explain. Issue 2 Cognitive ability tests are one of the best predictors of job performance, yet they have substantial adverse impact against minorities. Do you think it’s fair to use such tests? Why or why not?

Internal Selection CHAPTER TEN Screen graphics created by:

Chapter Outline Preliminary Issues Initial Assessment Methods
Logic of Prediction Types of Predictors Selection Plan Initial Assessment Methods Skills Inventory Peer Assessments Self-Assessments Managerial Sponsorship Informal Discussions and Recommendations Choice of Methods Substantive Assessment Methods Seniority and Experience Job Knowledge Tests Performance Appraisal Promotability Ratings Assessment Centers Interview Simulations Promotion Panels and Review Boards Choice of Methods Discretionary Assessment Methods Legal Issues

Preliminary Issues Logic of prediction Types of predictors
Selection plan

Logic of Prediction HR Outcomes Previous job(s) Current job Nonjob
Past Situations Attraction Performance Satisfaction Retention Attendance HR Outcomes New Situation (job) Person KSAOs Motivation Sample Predict

Preliminary Issues Logic of prediction Types of predictors
Similarities exist between internal and external selection in terms of effectiveness of selection methods Advantages of internal over external selection - Data often provide greater depth, relevance, and verifiability Types of predictors Content - Greater depth and relevance of data available on internal candidates Greater emphasis can be placed on samples and criteria rather than signs Selection plans need to be clearly communicated

Skills inventory Peer assessments Self-assessments Managerial sponsorship Informal discussions and recommendations

Skills Inventory Traditional Upgraded Customized
List of KSAOs held by each employee Upgraded Managers systematically enter latest skills acquired by employees in database as soon as they occur Customized Specific skill sets are recorded for specific jobs SMEs identify skills critical to job success Exh. 10.1: Customized Skill Inventory

Peer Assessments Methods include peer ratings, peer nominations, peer rankings Exh. 10.2: Peer Assessments Methods Strengths Rely on raters who presumably are knowledgeable of applicants’ KSAOs Peers more likely to view decisions as fair due to their input Weaknesses May encourage friendship bias Criteria involved in assessments are not always clear

Self-assessments Job incumbents asked to evaluate own skills to determine promotability Exh. 10.3: Self-Assessment Form Managerial sponsorship Higher-ups given considerable influence in promotion decisions Exh. 10.4: Employee Advocates Informal discussions and recommendations May be suspect in terms of relevance to actual job performance

Choice of Initial Assessment Methods
Exh. 10.5: Evaluation of Initial Assessment Methods Effectiveness of initial internal methods Skills inventories and informal methods used extensively Peer assessments methods very promising in terms of reliability and validity

Substantive Assessment Methods
Seniority and experience Job knowledge tests Performance appraisal Promotability ratings Assessment centers Interview simulations Promotion panels and review boards

Overview of Seniority and Experience
Definitions Seniority - Length of service with organization, department, or job Experience - Includes not only length of service but also kinds of activities an employee has undertaken Among the most prevalent methods of internal selection Why so widely used? Direct experience in a job content area reflects an accumulated stock of KSAOs necessary to perform job Information is easily and cheaply obtained Protects employee from capricious treatment and favoritism Promoting senior or experienced employees is socially acceptable -- viewed as rewarding loyalty

Evaluation of Seniority and Experience
Relationship to job performance Seniority is unrelated to job performance Experience is moderately related to job performance, especially in the short run Experience is a more valid method than seniority Experience is better suited to predict short-term rather than long-term potential Experience is more likely to be content valid if past or present jobs are similar to the future job Employees typically expect promotions will go to most senior or experienced employee Experience is unlikely to remedy initial performance difficulties of low-ability employees

Job Knowledge Tests Job knowledge includes elements of both ability and seniority Measured by a paper-and-pencil test or a computer Holds promise as a predictor of job performance Reflects an assessment of previous experiences of an applicant and an important KSAO - Cognitive ability

Performance Appraisal
A possible predictor of future job performance is past job performance collected by a performance appraisal process Advantages Readily available Probably capture both ability and motivation Weaknesses Potential lack of a direct correspondence between requirements of current job and requirements of position applied for “Peter Principle” Validity of using performance appraisal depends on several factors Exh. 10.6: Questions to Ask in Using Performance Appraisal as a Method of Internal Staffing Decisions

Promotability Ratings
Assessing promotability involves determining an applicant’s potential for higher-level jobs Promotability ratings often conducted along with performance appraisals Exh. 10.7: Promotability Rating Form Useful for both selection and recruitment Caveat When receiving separate evaluations for purposes of appraisal, promotability, and pay, an employee may receive mixed messages

Overview of Assessment Centers
Elaborate method of employee selection Involves using a collection of predictors to forecast success, primarily in higher-level jobs Objective Predict an individual’s behavior and effectiveness in critical roles, usually managerial Incorporates multiple methods of assessing multiple KSAOs using multiple assessors Exh. 10.8: Selection Plan for an Assessment Center

Characteristics of Assessment Centers
Length of assessment - 2 to 5 days Exh. 10.9: Assessment Center Program Schedule Participants take part in several exercises In-basket exercise Leaderless group discussion Case analysis Trained assessors evaluate participants’ performance Participants are usually managers being assessed for higher-level managerial jobs Participants are evaluated by assessors at conclusion of program Exh : Sample Assessment Rating Form

Evaluation of Assessment Centers
Validity Average validity --> ŕ = .37 Validity is higher when Multiple predictors are used Assessors are psychologists rather than managers Peer evaluations are used Possess incremental validity in predicting performance and promotability beyond personality traits and cognitive ability tests Research results “Crown prince/princess” syndrome Participant reactions

Other Substantive Assessment Methods
Interview simulations Role-play: candidate must play work related role with interviewer Fact finding: candidate needs to solicit information to evaluate an incomplete case Oral presentations: candidate must prepare and make an oral presentation on assigned topic Promotion panels and review boards: use multiple raters, which can improve reliability and can broaden commitment to decisions reached

Choice of Substantive Assessment Methods
Exh : Evaluation of Substantive Assessment Methods Effectiveness of substantive methods No single best method to narrow down candidate list to finalists Job knowledge, promotability ratings, and assessment centers are strong in terms of reliability and validity Interview simulations appear to be a promising technique for public contact jobs

Discretionary Assessment Methods
Narrows list of finalists to those who will receive job offers Decisions often made on basis of Organizational citizenship behavior and Staffing philosophy regarding EE0 / AA Differences from external selection Previous finalists not receiving job offers do not simply disappear Multiple assessors generally used

Legal Issues Uniform Guidelines on Employee Selection Procedures (UGESP) Shattering the glass ceiling Employ greater use of selection plans Minimize use of casual, subjective methods and use formal, standardized, job-related assessment methods Implement programs to convey KSAOs necessary for advancement to aspiring employees

Given that seniority is not a particularly valid predictor of job performance, do you think it’s unethical for a company to use it as a basis for promotion? Why or why not? Issue 2 Vincent and Peter are both sales associates, and are up for promotion to sales manager. In the last five years, on a 1=poor to 5=excellent scale, Vincent’s average performance rating was 4.7 and Peter’s was 4.2. In an assessment center that was meant to simulate the job of sales manager, on a 1=very poor to 10=outstanding scale, Vincent’s average score was 8.2 and Peter’s was 9.2. Assuming everything else is equal, who should be promoted? Why?

Decision Making CHAPTER ELEVEN Screen graphics created by:

Chapter Outline Choice of Assessment Method
Validity Coefficient Correlation with Other Predictors Adverse Impact Utility Determining Assessment Scores Single Predictor Multiple Predictors Hiring Standards and Cut Scores Description of Process Consequences of Cut Scores Methods to Determine Cut Scores Professional Guidelines Methods of Final Choice Random Selection Ranking Grouping Decision Makers HR Professionals Managers Employees Legal Issues

Choice of Assessment Method
Validity coefficient Correlation with other predictors Adverse impact Utility

Validity Coefficient Practical significance Statistical significance
Extent to which predictor adds value to prediction of job success Assessed by examining Sign Magnitude Validities above .15 are of moderate usefulness Validities above .30 are of high usefulness Statistical significance Assessed by probability or p values Reasonable level of significance is p < .05 Face validity

Correlation With Other Predictors
To add value, a predictor must add to prediction of success above and beyond forecasting powers of current predictors A predictor is more useful the Smaller its correlation with other predictors and Higher its correlation with the criterion Predictors are likely to be highly correlated with one another when their content domain is similar

Adverse Impact Role of predictor Issues
Discriminates between people in terms of the likelihood of their job success When it discriminates by screening out a disproportionate number of minorities and women, Adverse impact exists which may result in legal problems Issues What if one predictor has high validity and high adverse impact? And another predictor has low validity and low adverse impact?

Utility Analysis Expected gains derived from using a predictor
1. Hiring success gain from using a new predictor (relative to current predictor): Uses Taylor-Russell Tables Focuses on proportion of new hires who turn out to be successful Requires information on: Selection ratio: Number hired / number of applicants Base rate: proportion of employees who are successful Validity coefficient of current and “new” predictors 2. Economic gain from using a predictor (relative to random selection): Uses Economic Gain Formula Focuses on the monetary impact of using a predictor Requires a wide range of information on current employees, validity, number of applicants, cost of testing, etc.

Utility Analysis: Taylor-Russell Tables
If base rate = .30, impact of validity and selection ratio If base rate = .80, impact of validity and selection ratio Selection Ratio Validity .10 .70 .20 43% 33% .60 77% 40% Selection Ratio Validity .10 .70 .20 89% 83% .60 99% 90%

Utility Analysis: Economic Gain Formula
∆U = (T * N * rxy * SDy * Zs) – (N * Cy) Where: ∆U = expected $ increase to org. versus random selection T = tenure of selected group (how long new hires are expected to stay) N = number of applicants selected rxy = correlation between predictor and job performance value SDy = standard deviation of job performance Zs = average standard predictor score of selected group N = number of applicants Cy = cost per applicant Apply the formula above. Assume the following estimates are reasonable: T = 3; Ns=50; r = .35; 40% of pay = $15,000; Zs = .7; N = 200; C = $200 Discuss the issues involved in estimating gain in this example

Limitations of Utility Analysis
1. While most companies use multiple selection measures, utility models assume decision is Whether to use a single selection measure rather than Select applicants by chance alone 2. Important variables are missing from model EEO / AA concerns Applicant reactions 3. Utility formula based on simplistic assumptions Validity does not vary over time Non-performance criteria are irrelevant Applicants are selected in a top-down manner and all job offers are accepted

Determining Assessment Scores
Single predictor Multiple predictors - 3 approaches Compensatory model - Exh. 11.3 Clinical prediction Unit weighting Rational weighting Multiple regression Choosing among weighting schemes - Exh. 11.4 Multiple hurdles model Combined model - Exh. 11.5: Combined Model for Recruitment Manager

Relevant Factors: Selecting the Best Weighting Scheme
Do decision makers have considerable experience and insight into selection decisions? Is managerial acceptance of the selection process important? Is there reason to believe each predictor contributes relatively equally to job success? Are there adequate resources to use involved weighting schemes? Are conditions under which multiple regression is superior satisfied?

Exh. 11.5: Combined Model for Recruitment Manager

Hiring Standards and Cut Scores
Issue -- What is a passing score? Score may be a Single score from a single predictor or Total score from multiple predictors Description of process Cut score - Separates applicants who advance from those who are rejected Consequences of cut scores Exh. 11.6: Consequences of Cut Scores

Exh. 11.6: Consequences of Cut Scores

Hiring Standards and Cut Scores (continued)
Methods to determine cut scores Exh. 11.7: Use of Cut Scores in Selection Decisions Minimum competency Top-down Banding Professional guidelines Exh. 11.8: Professional Guidelines for Setting Cutoff Scores

Exh. 11.7: Use of Cut Scores in Selection Decisions

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

Decision Makers Role of human resource professionals Role of managers
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

Legal Issues Legal issue of importance in decision making
Cut scores or hiring standards Uniform Guidelines on Employee Selection Procedures (UGESP) If no adverse impact, guidelines are silent on cut scores If adverse impact occurs, guidelines become applicable Choices among finalists

Do you think companies should use banding in selection decisions? Defend your position. Issue 2 Is clinical prediction the fairest way to combine assessment information about job applicants, or are the other methods (unit weighting, rational weighting, multiple regression) more fair? Why?

Retention Management CHAPTER FOURTEEN Screen graphics created by:

Chapter Outline Turnover and Its Causes Analysis of Turnover
Nature of Problem Types of Turnover Causes of Turnover Analysis of Turnover Measurement Reasons for Leaving Costs and Benefits Retention Initiatives: Voluntary Turnover Retention Initiatives: Discharge Retention Initiatives: Downsizing Legal Issues

Turnover and Its Causes
Nature of problem Types of turnover Causes of turnover

Nature of the Problem Employee retention can contribute to organizational effectiveness Turnover is not only costly but may be beneficial Focus of retention strategies Number of employees retained and Who is retained Turnover is inevitable Approach to retention management Gather and analyze employees’ reasons for leaving

Types of Turnover Exhibit 14.1: Types of Employee Turnover Voluntary
Avoidable - Could be prevented Try to prevent for high value employees Do not try to prevent for low value employees Unavoidable - Could not be prevented Involuntary Discharge Downsizing

Avoidable (could prevent) Unavoidable (could not prevent)
Exhibit 14.1: Types of Employee Turnover - Voluntary -- Employee Initiated Avoidable (could prevent) Unavoidable (could not prevent) Try to Prevent: High-Value Employees High performance Strong KSAOs Valued intellectual capital High promotion potential High training investment High experience Difficult to find replacement Do not Prevent: Low-Value Employees Low performance Weak KSAOs Little intellectual capital Low promotion potential Low training investment Low experience Easy to find replacement No attempt to Prevent: Regardless of Value Retirement Dual career New career Health Child care or pregnancy Elder care Return to school Leave country Take a break

Exhibit 14.1: Types of Employee Turnover - Involuntary -- Organization Initiated
Discharge Downsizing Discipline Poor performance Permanent layoff Temporary layoff Site or plant closing, relocation Redundancy due to merger or acquisition

Causes of Turnover: Voluntary
Exhibit 14.2: Causes of Voluntary Turnover Behavior of leaving preceded by intention to quit Factors affecting intention to quit Perceived desirability of leaving Often results from a poor person/job or Person/organization match Perceived ease of leaving Represents lack of barriers to leaving and Of being able to likely find a new job Available alternatives Depends on other job options both within and outside organization

Exhibit 14.2: Causes of Voluntary Turnover
Desirability of Leaving Low job satisfaction Shocks to employee Personal (nonjob) reasons + Ease of Leaving Favorable labor market conditions General, transferable KSAOs Low cost of leaving + Intention to Quit + Quit Alternatives Internal: New job possibilities External: Job offers +

Causes of Turnover: Discharge and Downsizing
Discharge turnover Mismatch between job requirements and KSAOs Employee fails to follow rules and procedures Unacceptable job performance Downsizing turnover Mismatch in staffing levels which leads to an overstaffing situation Factors related to overstaffing Lack of forecasting and planning Inaccuracies in forecasting and planning Unanticipated changes in labor demand and/or supply

Analysis of Turnover Measurement Reasons for leaving
Costs and benefits

Measurement of Turnover: Formula
Turnover rate Number of employees leaving  average number of employees x 100 Data and decisions Identify time period of interest Determine type of employees that count Determine method to calculate average number of employees over the time period

Measurement of Turnover: Breakouts and Benchmarks
Analysis of turnover data aided by deciding on categories of data Type of turnover Type of employee Job category Geographic location Benchmarks Internal - Trend analysis External - Compare internal data with external data Exh. 14.3: Data from job openings and labor turnover survey

Measurement of Turnover: Reasons for Leaving
Important to ascertain, record, and track reasons why employees leave Tools Exit interviews Formal, planned interviews with departing employees Postexit surveys Surveys sent to employees soon after their last day Employee satisfaction surveys Surveys of current employees to discover sources of dissatisfaction which may become reasons for leaving Results can provide information to pre-empt turnover Require substantial resources

Guidelines: Conducting Exit Interviews
Interviewer should be a neutral person who has been trained in how to conduct exit interviews Training issues How to put employee at ease and explain purpose How to follow structured interview format and take notes How to end interview on positive note Structured interview format should contain questions about unavoidable and avoidable reasons for leaving Exh. 14.4: Examples of Exit Interview Questions Interviewer should prepare by reviewing interview format and interviewee’s personnel file Interview should be conducted in private, before employee’s last day Interviewee should be told interview is confidential

Measurement of Turnover: Costs and Benefits
Costs and benefits can be estimated for each of the three turnover types Types of costs Financial Nonfinancial Some costs and benefits can be estimated financially Nonfinancial costs and benefits may outweigh financial ones in importance and impact

Costs and Benefits for Types of Turnover
Voluntary turnover Exh. 14.5: Voluntary Turnover: Costs and Benefits Exh. 14.6: Example of Financial Cost Estimates for One Voluntary Turnover Discharge Exh. 14.7: Discharge: Costs and Benefits Downsizing Exh. 14.8: Downsizing: Costs and Benefits Costs Benefits

Retention Initiatives: Voluntary Turnover
Current practices and deciding to act What do organizations do? Exh. 14.9: Retention Initiatives: Usage and Effectiveness Exh : Retention Initiative Examples Decision process Exh : Decision Process Desirability of leaving Exh : Guidelines for Increasing Job Satisfaction and Retention Ease of leaving Alternatives

Guidelines for Increasing Job Satisfaction and Retention
Extrinsic rewards Rewards must be meaningful and unique Rewards must match individual preferences Link rewards to retention behaviors Link rewards to performance Intrinsic rewards Assign employees to jobs that meet their needs for work characteristics Provide clear communication with employees Design fair reward allocation systems Ensure supervisors provide a positive environment

Exh. 14.11: Decision Process for Retention Initiatives
Do We Think Turnover Is a Problem? How Might We Attack the Problem? What Do We Need to Decide? Should We Proceed? How Should We Evaluate the Initiatives?

Ease of Leaving Two points of attack
Provide organization-specific training Should organization invest in training to provide general or organization-specific KSAOs? Combine training strategy with a selection strategy focused on assessing and selecting general KSAOs Increase cost of leaving by providing Above-market pay and benefits Deferred compensation Retention bonuses Desirable location of company’s facilities

Alternatives Approaches to make internal alternatives more desirable than outside alternatives Internal staffing Encourage employees to seek internal job opportunities Provide attractive internal options outside of traditional internal staffing system Responding to external job offers entails developing appropriate policies Decide whether to provide counteroffers or not Determine types of employees to provide counteroffers Decide who will develop counteroffer and nature of approval process

Retention Initiatives: Discharge
Performance management Exh : Performance Management Process Manager training and rewards Progressive discipline Five requirements of a progressive discipline system - P. 701 Actions to take Exh : Progressive Discipline Examples: Misconduct and Penalties

Exh. 14.12: Performance Management Process
Organization Strategy Work-Unit Plans (1) Performance Planning Goals Competencies (4) Decisions Pay Training/career plans Performance problems Retention (2) Performance Execution Resources Coaching Feedback (3) Performance Appraisal Goal attainment Competency ratings Written comments Feedback

Retention Initiatives: Downsizing
Weigh advantages and disadvantages See Exh. 14.8 Staffing levels and quality View retention in two ways Balance a financial quick fix against unlikely return of downsized employees if economic conditions improve Approach reductions in selective or targeted terms, rather than across the board Determine who should be retained, if cuts are made Retain most senior employees Make performance-based decisions Retain “high-value employees” and layoff “low-value employees”

Retention Initiatives: Downsizing (continued)
Alternatives to downsizing No layoff or guaranteed employment policy Layoff minimization programs Exh : Layoff Minimization Examples Employees who remain Potential results of ignoring survivors Increased stress levels Critical appraisals of downsizing process Examples of “survivor sickness” Provide programs to meet needs of survivors Enhanced communication programs Morale-boosting events Promotion of EAPs Stress-related training

Legal Issues Separation laws and regulations Performance appraisal

Legal Issues: Separation
Basic tenet of employee separation Fair and consistent treatment of employees Laws and regulations governing separation process Public policy restrictions on employment-at-will Employment discrimination laws and regulations Affirmative action requirements Employment contract principles Labor contract provisions Civil service laws and regulations Negligent supervision and retention Advanced warning about plant closings

Legal Issues: Suggestions for Performance Appraisal Systems
Appraisal criteria should be job-related, specific, and communicated in advance Manager/rater should receive training in overall performance appraisal process and how to avoid rating errors Manager should be familiar with employee’s job description and actual performance Agreement should exist among different raters in evaluating an employee’s performance Evaluations should be in writing Employee should be able to review evaluation and make comments before it becomes final Employee should receive timely feedback about the evaluation and an explanation for any outcome decision Provide upward review of employee’s appraisal Provide appeal system for employees dissatisfied with their evaluations

Ethical Issues Issue 1 Consider a circumstance where your organization is doing exit interviews and has promised confidentiality to all who respond. Your supervisor has asked you to give the name of each respondent so she can assess the information in conjunction with the person’s supervisor. What obligation to corporate HR employees have to keep information confidential in such circumstances?

Ethical Issues Issue 2 There are numerous negative organizational consequences to firing employees, including the discomfort of the supervisor who delivers the termination information, conflict or sabotage from the departing employee, and the potential for a lawsuit. In response, many supervisors provide problem employees unpleasant work tasks, reduced working hours, or otherwise negatively modify their jobs in hopes that the problem employees will simply quit. What are the ethical issues raised by this strategy?

Part 1 The Nature of Staffing

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