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2. What is Human Resource Planning?
HR Planning is forecasting the supply and demand for labor in a firm or unit, and planning programs to assure that supply matches demand in the future.
Who Is Planned For?
Aggregate level (total headcount, headcount in job or job family)
Individual positions (managerial succession planning)
When Is Planning Done?
At least annually
Time horizons vary
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3. Figure 3.1 A Model for Human Resource Planning
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4. Figure 3.4: Planning Human Resource Programs
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5. Managerial Succession Planning
Identify high potential individuals and plan to prepare them for higher level management positions.
May use replacement charts to identify successors for specific jobs, or
May focus on creating pools of qualified candidates to service a number of positions.
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6. Figure 3.5 Replacement Chart
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7. Job Analysis The Job Analysis Process
Phase 1: The Scope of the Job Analysis
Phase 2: The Methods of Job Analysis
Phase 3: Data Collection and Analysis
Phase 4: Assessing Traditional Job Analysis Methods
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8. The New Strategic View of Job Analysis
Job Analysis Methods Should Be:
Future-oriented
Linked to key strategic issues
More generic in their approach
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9. The New Strategic View (cont’d)
Competency Modelling
Task competencies
Results competencies
Outcome competencies
Knowledge, skill, and attitude competencies
Superior performer differentiators
Attribute bundles
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10. Job Analysis Adding Value?
Dollar costs versus dollar benefits
Non-dollar costs versus non-dollar benefits
Dollar and non-dollar costs/benefits difficult to assess
Critical issue is does job analysis help employees perform better
Does is help you better understand needs?
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11. Recruitment & Selection
Overview of the Recruitment Process
Strategic Issues in Recruiting
Internal Recruiting
External Recruiting
The Applicant’s Point of View
Evaluation and Benchmarking of Recruitment
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12. Figure 6.1a/b Overview of the Recruitment Process — Organization & Applicant
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13. Recruitment Goals & Priorities
Attract large numbers of candidates?
Attract highly qualified candidates?
Attract candidates who will accept offers?
Fill vacancies quickly?
Fill at minimal cost?
Hire high performers?
Hire people who stay?
Generate positive perceptions, feelings, spillovers?
Are recruitment activities/philosophy matched to business strategy?
Internal or external labor markets?
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14. Recruitment Philosophy
Internal or External Sources?
Fill current vacancies or hire for long term potential?
How important is diversity?
Are applicants commodities or customers?
What recruitment practices are unethical?
Are recruitment activities/philosophy matched to business strategy?
Internal or external labor markets?
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15. Recruitment Choices/Behaviors
Plans
Timing
Methods
Sources
Successful +
Cost Effective
Are recruitment activities/philosophy matched to business strategy?
Internal or external labor markets?
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16. Advantages and Disadvantages of Internal Sources
+ Ability of candidate is known
+ Internal promotion motivates employees
+ Training and socialization time is less
- Internal sources may be insufficient for growth
- Ripple effect, cumbersome procedures
- Inbreeding, loss of flexibility
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17. Advantages and Disadvantages of External Sources
+ Import new ideas and skills
+ Avoid ripple effect
+ May be necessary in turnaround situation
- Expensive
- Time consuming
- More difficult to evaluate candidates
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18. If the applicant pool is too small...
Recruit in a larger geographical area
Improve or change inducements
Target underutilized labor pools
Sponsor immigration of skilled employees
Acquire a company with desired human resources
Use temporaries or employee leasing
Outsource the function
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19. Internal Recruiting Job Posting and Bidding
Employees self-nominate for open positions
Search HRIS/Skills Inventory for internal candidates
Managers nominate candidates
Succession plans are consulted
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20. Planning for External Recruiting
Liaise with hiring manager to understand job requirements
Calculate yield ratios
Calculate days-to-hire
Determine when to begin, how extensively, and where to recruit
Prepare to track applications manually or with résumé-tracking software
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21. Informal External Recruitment Methods
Unsolicited applications, walk-ins, gate hires
Rehire former employees or co-op students
Ask employees to refer potential candidates
Consider referral bonuses
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22. Formal External Recruiting Methods
Recruitment Advertising
Internet Recruiting
Employment Agencies
Public Job Service Agencies
Private, For-Profit Agencies
Executive Search Firms
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23. Table 6.2 Effectiveness of Recruitment Methods
Source: Based on a survey of 303 HR Professionals, from HR Magazine, December 1996, p. 53. Data on Internet
recruiting is from HR Focus,May 2000, p. 8
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24. Recruiting Targeted Groups
Executive search firms
Campus Recruiting
Older Workers
Disabled Workers
Disadvantaged Workers
Minorities
Passive Job Seekers
Family-Friendly Policies
Job sharing
Flextime
Telecommuting/working (allows access to new labor markets)
Provide employee and employer benefits
SPELL OUT the expectations
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25. Non-Traditional Approaches
Innovative
- Telecruitin
- Direct mail
- Point of sale messages
- Talent scout cards
- Posters
- Door janges
- Radio/TV, billboards
- Hotlines/800 #
- Info seminars
- Referral programs
- Outplacement firms (layed off people)
- Event recruiting
- Re-recruiting former employees
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26. Figure 6.6 Factors Affecting Applicants’ Job Choice
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27. Realistic Job Preview Reduces early turnover and dissatisfaction via:
Self-Selection out if the job doesn’t fit
Increased Commitment to an Informed Decision
Lowered Expectations, less gap with reality
Improved Coping with job difficulties
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28. Evaluation and Benchmarking of Recruitment
Measures of Recruitment Success
Satisfaction of Internal Clients
Cost per Hire
Time to Fill
Quality of Hires
Differential Quality of Recruiting Sources
Yield Pyramid
Yield ratio…
Resume tracking software
Hiring management systems
Informal vs formal methods of recruitment
- Walk ins
- Referral
Posting
Advertising
Internet
Job agencies
Public job service agencies
Search firms
Unions
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29. Review Overview of the Recruitment Process
Strategic Issues in Recruiting
Internal Recruiting
External Recruiting
The Applicant’s Point of View
Evaluation and Benchmarking of Recruitment
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30. Case 6.2 - Recruiting at Health Source
How would you go about locating and recruiting the 50 employees needed for the new stores?
What are your options?
How do the recruiting methods you considered compare with one another in terms of cost, and how effective do you think it will be?
How long will it take?
What if:
Health Source plans no further expansion after these two new stores; or
Health Source plans to pursue an aggressive expansion policy for several years?
Health Source owns four drugstores in Houston and will open two more in the next year--one in suburban Houston, one in Dallas. Each start requires 25 employees:
5 pharmacists
4 cosmeticians
1 manager
1 assist. Manager
Numerous clerks
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32. Assessing Job Candidates: Tools for Selection
The Selection Process
Application Blanks and Biodata
Tests
Interviews
Physical Testing
Reference and Background Checks
Selecting Managers
Criteria for Choosing Selection Devices
Strategy drives HR OR
HR drives strategy?
= Hiring the best people one can find, rather than hiring those who fit a specific job or strategy that exists today--but may be gone tomorrow.
Some may be in HR
Some may be in the department, office, area that makes the final decision
HR has to be an effective executor--but also educator and facilitator (as some of the important work is done by the hiring department or manager)
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33. Benefits of Careful and Strategic Selection
Tradeoff with training/socialization
Hire more carefully, less training may be needed
Hire less carefully, train more afterwards
Improved performance
Effective strategy implementation
Hire the kind of people needed to implement strategy
Sustainable competitive advantage
Match strategy to the unique human resources you have
ISSUE:
Cost of hiring the WRONG person are HIGH
Hiring the RIGHT person SAVES MONEY, TIME & ENERGY
Understanding your VALUE PROPOSITION to your customers
If you know (accurately) what value you provide, you must also know they type of people it requires to deliver it….
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34. Figure 8.1 The Process of Selection
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35. Application Questions
Problematic Questions:
Age, gender, religion, all handicaps, all arrests/convictions, photo, birthplace
Any questions that indirectly get at the above.
Acceptable Questions:
Job-relevant characteristics, qualities, and abilities
Bona fide Occupational Qualifications
Beware: FRAUD = need for outside verification
APPLICATION BLANKS/INTERVIEW QUESTIONS
- Cannot discriminate based on age, race, color, sex/gender, religion, national origin
- Can’t act on this information in a discriminatory fashion
General rule: AVOID SUCH QUESTIONS unless they are CLEARLY JOB RELATED
“Would this question impact any group in a disproportionate fashion?”
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36. Biodata
Biodata is any personal history information, from WAB, biodata questionnaire, or experience/accomplishment record
May be valid because:
verifiable, non-fiction
only relevant items are weighted
point-to-point correspondence with job demands
may reflect job-relevant personality traits/values
assesses both cognitive and non-cognitive attributes
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37. Tests
A test is a standardized sample of behavior, allowing candidates to be compared easily.
Cognitive ability tests are often highly valid predictors of job performance.
Tests are legal if they produce no adverse impact OR validly predict job performance.
Created or purchased
Know what you are looking for
Know how to measure it
Reliability (or repeat measurement)
Internal consistency (multiple measures of a concept)
Over time (test/retest)
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38. Work Sample and Trainability Tests
Work sample tests are used to select individuals who already must know how to perform critical job tasks.
Trainability tests are used when candidates are not expected to know the job, to assess their aptitude for learning it.
Both have face validity, content validity, and usually predictive validity.
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39. Personality Tests, etc.
Can predict non-cognitive aspects of job success with low to moderate validity
May have incremental validity over cognitive tests
EQ versus IQ (emotional intelligence)
Integrity tests
Overt
Attitudes re: theft, past dishonesty
Personality-oriented
Dependability, rule following, impulse control, conscientiousness
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40. “Big Five” Personality Dimensions
1. Extraversion --- introversion
2. Friendliness, agreeableness --- hostility, non-compliance
3. Neuroticism --- emotional stability
4. High conscientiousness --- low conscientiousness
5. High openness to experience --- low openness to experience
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41. The Interview Interrater reliability of interviews may be low
Validity of interviews depends on structure
Unstructured interviews are least valid
Semi-structured interviews have some pre-planning and some tailoring to the candidate
Structured interviews (same questions asked of each candidate) based on a job analysis are most valid
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42. Interviewer Errors and Biases
Similarity Error
Contrast Error
Overweighting of Negative Information
Race, Sex, and Appearance Bias
First Impression Error
Halo Error
Nonverbal Factors
Faulty Listening and Memory
- Similarity: liking someone like you
- Contrast: comparing one with the previous candidate, not compared to absolute standard
Overweighting: searching for negative or swaying from good to bad impression, but not opposite
Sex: women preferring men and vice versa
First impression: based on relatively little data; resistant to change
Halo/traits rated: impression of single dimension overtakes others (pro and con)
Nonverbal: clothing, eye contact, smile, animation, speaking fluently, voice, etc.
Differences between interviewers (inter-rater reliability)
- Different criteria and weights
- Different definitions of job, candidate attributes/skills
- Different rapport building abilities
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43. Figure 8.7 Cone Method of Semistructured Interviewing
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44. Effective Structured Interview Formats
Situational Interview
What would you do if two of your subordinates were having a conflict?
Behavior Description Interview
Tell me about a time two of your subordinates were having a conflict.
What did you do?
How well did it work?
What else did you try?
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45. Improving the Interview
Base questions on a thorough job analysis
Use a more structured format
Use situational and/or behavior description questions
Have interview conducted by a trained panel of interviewers
Assess only qualities that are visible in interviews
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46. Physical Testing The Physical Examination
May not be required until after a conditional job offer is made
Often not as reliable or valid as strength and fitness testing based on verified job demands.
May be used for placement or to allow accommodation if unable to perform a “marginal” job function.
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47. Drug Testing Drug use is NOT a handicap under ADA
Drug tests can be done prior to a conditional offer, also randomly during employment
Tests are reliable but expensive and invasive
Advisable in safety-sensitive jobs
Perceived fairness is essential
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48. Obtaining Reference/Background Information
Written references or phone interviews may be used
Ask nominated referees for additional people to contact
Ask job-related questions of referees
Disclose to applicant that you are seeking reference information or doing a background check
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49. Validity and Legality of Reference Information
Validity may be low
Check references to avoid “negligent hiring” and because résumé fraud is common
Beware defamation suits when giving reference information
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50. Selecting Managers Assessment Centers Valid but expensive
Multiple assessees
Multiple assessors
Multiple exercises: In-basket test, leaderless group discussion, interview, tests
Valid but expensive
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51. Criteria for Choosing Selection Devices
Validity
Utility
Cost, Base Rate of Success, Selection Ratio, Incremental Validity, etc.
Legality/Likelihood of legal challenge
Acceptability to Managers
Applicant Reactions
Societal Impact
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52. Table 8.9 Average Validity and Incremental Validity of Selection Devices
Source: Data from F.L. Schmidt and J.E. Hunter, “The Validity and Utility of Selection Methods in Personnel Psychology: Practical and Theoretical Implications of 85 Years of Research Findings,” Psychological Bulletin, Vol.124, 1998, pp Note that the correlations in the second column are correct upwards to account for restriction in range and unreliability in the measurement of performance.
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53. Review Selection Process Application Blanks and Biodata Tests
Interviews
Physical Testing
Reference and Background Checks
Selecting Managers
Criteria for Choosing Selection Devices
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54. Ex. 8.2 - Hiring at Health Source
How will you go about selecting clerks?
What legal considerations will affect your decisions?
How many selection devices will you use? What order? Cost? Validity?
How could you use work sample tests? Trainability tests?
How would you deal with integrity and drug use in selection?
How will applicants react to the selection process?
Opening new stores in Houston & Dallas
Each requires 15 clerks
You:
Are HR director
Have done job analysis
Attracted 100 applicants
Need clerks who:
Can learn cash register
Provide customer relations
Don’t have drug problems or theft histories
Recommend a complete selection system…
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