1. CHAPTER 8: STAFFING Copyright © 2005 South-Western. All rights reserved.

2. 1–21–2 StaffingStaffing StaffingStaffing –Process of recruiting & selecting prospective employees –Has significant impact on organization’s bottom line Requires staffing process to become strategically focusedRequires staffing process to become strategically focused –Recruitment & selection activities offer organization numerous choices to find & select new employees –Staffing decisions need to ensure employees fit organization’s culture StaffingStaffing –Process of recruiting & selecting prospective employees –Has significant impact on organization’s bottom line Requires staffing process to become strategically focusedRequires staffing process to become strategically focused –Recruitment & selection activities offer organization numerous choices to find & select new employees –Staffing decisions need to ensure employees fit organization’s culture

3. Copyright © 2005 South-Western. All rights reserved.1–31–3 RecruitingRecruiting Temporary versus permanent employeesTemporary versus permanent employees –Increase headcount temporarily or permanently should be strategically-driven –Basis for decisions is HR forecast –Temporary employees less costly –Temporary headcount increases can be obtained from specialized agencies –Headcount increases can be avoided by subcontracting work Temporary versus permanent employeesTemporary versus permanent employees –Increase headcount temporarily or permanently should be strategically-driven –Basis for decisions is HR forecast –Temporary employees less costly –Temporary headcount increases can be obtained from specialized agencies –Headcount increases can be avoided by subcontracting work

4. Copyright © 2005 South-Western. All rights reserved.1–41–4 Exhibit 8-1 Advantages & Disadvantages of Internal & External Recruiting

5. Copyright © 2005 South-Western. All rights reserved.1–51–5 RecruitingRecruiting When & how extensively to recruitWhen & how extensively to recruit –When do recruiting efforts need to begin? –How large an applicant pool needed? –Data from past recruiting efforts utilized To answer questions where feasibleTo answer questions where feasible Adjust for changed conditionsAdjust for changed conditions Yield ratiosYield ratios –Offer information on how many applicants eliminated/remain at each step in recruitment process –Can determine proper or necessary size of applicant pool When & how extensively to recruitWhen & how extensively to recruit –When do recruiting efforts need to begin? –How large an applicant pool needed? –Data from past recruiting efforts utilized To answer questions where feasibleTo answer questions where feasible Adjust for changed conditionsAdjust for changed conditions Yield ratiosYield ratios –Offer information on how many applicants eliminated/remain at each step in recruitment process –Can determine proper or necessary size of applicant pool

6. Copyright © 2005 South-Western. All rights reserved.1–61–6 Exhibit 8-2 Recruiting Pyramid

7. Copyright © 2005 South-Western. All rights reserved.1–71–7 Exhibit 8-3 Recruiting Timeline

8. Copyright © 2005 South-Western. All rights reserved.1–81–8 Methods of Recruiting Informally or formallyInformally or formally Internally or externallyInternally or externally Targeted advertising in selected mediaTargeted advertising in selected media Recruiting on InternetRecruiting on Internet Outsourcing to staffing agenciesOutsourcing to staffing agencies Private Industry Councils (PICs)Private Industry Councils (PICs) Executive search firmsExecutive search firms On-campus recruitingOn-campus recruiting Informally or formallyInformally or formally Internally or externallyInternally or externally Targeted advertising in selected mediaTargeted advertising in selected media Recruiting on InternetRecruiting on Internet Outsourcing to staffing agenciesOutsourcing to staffing agencies Private Industry Councils (PICs)Private Industry Councils (PICs) Executive search firmsExecutive search firms On-campus recruitingOn-campus recruiting

9. Copyright © 2005 South-Western. All rights reserved.1–91–9 Recruiting on Internet One of fastest-growing recruitment methodsOne of fastest-growing recruitment methods More cost-effective than newspaper advertisingMore cost-effective than newspaper advertising Low cost, speed, & ability to target applicants with technical skillsLow cost, speed, & ability to target applicants with technical skills Allows applicants to assess interests & needs with employer’s offeringsAllows applicants to assess interests & needs with employer’s offerings Global exposure to potential applicantsGlobal exposure to potential applicants Can cut search process time by as much as 75%Can cut search process time by as much as 75% One of fastest-growing recruitment methodsOne of fastest-growing recruitment methods More cost-effective than newspaper advertisingMore cost-effective than newspaper advertising Low cost, speed, & ability to target applicants with technical skillsLow cost, speed, & ability to target applicants with technical skills Allows applicants to assess interests & needs with employer’s offeringsAllows applicants to assess interests & needs with employer’s offerings Global exposure to potential applicantsGlobal exposure to potential applicants Can cut search process time by as much as 75%Can cut search process time by as much as 75%

10. Copyright © 2005 South-Western. All rights reserved.1–10 Recruiting on Internet Some potential challengesSome potential challenges –Ensuring security –Viruses –Access to unauthorized areas –Disparate impact against certain protected classes –Can complicate reporting of data related to compliance with federal & state laws Some potential challengesSome potential challenges –Ensuring security –Viruses –Access to unauthorized areas –Disparate impact against certain protected classes –Can complicate reporting of data related to compliance with federal & state laws

11. Copyright © 2005 South-Western. All rights reserved.1–11 Selection Process Issues ReliabilityReliability –Consistency of measurement –Screening criteria should elicit same results in repeated trials across time & evaluators –Reliability influenced by criterion deficiency & contamination errors –Reliability is prerequisite for validity ReliabilityReliability –Consistency of measurement –Screening criteria should elicit same results in repeated trials across time & evaluators –Reliability influenced by criterion deficiency & contamination errors –Reliability is prerequisite for validity

12. Copyright © 2005 South-Western. All rights reserved.1–12 Selection Process Issues ValidityValidity –Degree to which what is assessed is related to actual performance –Ability to establish job-related validity is crucial to employers in defending themselves in discrimination allegations –Content validity illustrates that measure or criterion is representative of actual job content or knowledge –Criterion (empirical) validity demonstrated by relationship between screening criteria & job performance ValidityValidity –Degree to which what is assessed is related to actual performance –Ability to establish job-related validity is crucial to employers in defending themselves in discrimination allegations –Content validity illustrates that measure or criterion is representative of actual job content or knowledge –Criterion (empirical) validity demonstrated by relationship between screening criteria & job performance

13. Copyright © 2005 South-Western. All rights reserved.1–13 Interviewing Process Issues Who should be involved?Who should be involved? –Prospective supervisors, peers, subordinates Which interview format?Which interview format? –Individual or group interviews Common interviewer errorsCommon interviewer errors –Similarity errors –Contrast errors –First impression –Halo errors –Personal biases Who should be involved?Who should be involved? –Prospective supervisors, peers, subordinates Which interview format?Which interview format? –Individual or group interviews Common interviewer errorsCommon interviewer errors –Similarity errors –Contrast errors –First impression –Halo errors –Personal biases

14. Copyright © 2005 South-Western. All rights reserved.1–14 Behavioral Interviewing Used with experienced & inexperienced applicantsUsed with experienced & inexperienced applicants Asks about situations candidate is likely to face on jobAsks about situations candidate is likely to face on job Candidates can present real-life situations they were involved in & how they handled themCandidates can present real-life situations they were involved in & how they handled them Used with experienced & inexperienced applicantsUsed with experienced & inexperienced applicants Asks about situations candidate is likely to face on jobAsks about situations candidate is likely to face on job Candidates can present real-life situations they were involved in & how they handled themCandidates can present real-life situations they were involved in & how they handled them

15. Copyright © 2005 South-Western. All rights reserved.1–15 TestingTesting Work sample testsWork sample tests –Ask applicant to complete representative sample of actual work Trainability testsTrainability tests –Measure Aptitude in certain areasAptitude in certain areas Ability to understand critical job components that firm will teach new hiresAbility to understand critical job components that firm will teach new hires Work sample testsWork sample tests –Ask applicant to complete representative sample of actual work Trainability testsTrainability tests –Measure Aptitude in certain areasAptitude in certain areas Ability to understand critical job components that firm will teach new hiresAbility to understand critical job components that firm will teach new hires

16. Copyright © 2005 South-Western. All rights reserved.1–16 TestingTesting Realistic job previewsRealistic job previews –Make applicants aware of both positive & negative aspects of job –Decrease likelihood new employee will become dissatisfied –Increase likelihood of candidate’s self-selecting out of position Personality testing is useful in anticipating how applicants are likely to behavePersonality testing is useful in anticipating how applicants are likely to behave Realistic job previewsRealistic job previews –Make applicants aware of both positive & negative aspects of job –Decrease likelihood new employee will become dissatisfied –Increase likelihood of candidate’s self-selecting out of position Personality testing is useful in anticipating how applicants are likely to behavePersonality testing is useful in anticipating how applicants are likely to behave

17. Copyright © 2005 South-Western. All rights reserved.1–17 Exhibit 8-4 The Big Five Personality Dimensions Personality Dimension Characteristics of Person Scoring Positively on Dimension 1) Extraversion Outgoing, talkative, social, assertive 2) Agreeableness Trusting, good-natured, cooperative, soft-hearted 3) Conscientiousness Dependable, responsible, achievement-oriented, persistent 4) Emotional stability Relaxed, secure, unworried 5) Openness to experience Intellectual, imaginative, curious, broad-minded

18. Copyright © 2005 South-Western. All rights reserved.1–18 Other Testing Methods Other Testing Methods Personality testingPersonality testing –Useful to anticipate how applicants likely to behave –Few, if any, jobs require specific personality type –Have been successfully challenged in court Physical testingPhysical testing –Restricted under ADA to testing only for specific critical job-related physical performance requirements Personality testingPersonality testing –Useful to anticipate how applicants likely to behave –Few, if any, jobs require specific personality type –Have been successfully challenged in court Physical testingPhysical testing –Restricted under ADA to testing only for specific critical job-related physical performance requirements

19. Copyright © 2005 South-Western. All rights reserved.1–19 Other Testing Methods Honesty testingHonesty testing –Declined since passage of Polygraph Protection Act in 1988 Drug testingDrug testing –Challenged in courts as invasion of privacy ReferencesReferences –Little information available due to former employer fears of liability for libel, slander & defamation Honesty testingHonesty testing –Declined since passage of Polygraph Protection Act in 1988 Drug testingDrug testing –Challenged in courts as invasion of privacy ReferencesReferences –Little information available due to former employer fears of liability for libel, slander & defamation

20. Copyright © 2005 South-Western. All rights reserved.1–20 Selection for International Assignments Reasons for failure on international assignmentsReasons for failure on international assignments –Interpersonal & acculturation abilities –Rarely technical skills Test employees’ adaptability, open- mindedness, ability to tolerate uncertainty & ambiguity & independenceTest employees’ adaptability, open- mindedness, ability to tolerate uncertainty & ambiguity & independence Interview & screen family members who would accompany employeeInterview & screen family members who would accompany employee Reasons for failure on international assignmentsReasons for failure on international assignments –Interpersonal & acculturation abilities –Rarely technical skills Test employees’ adaptability, open- mindedness, ability to tolerate uncertainty & ambiguity & independenceTest employees’ adaptability, open- mindedness, ability to tolerate uncertainty & ambiguity & independence Interview & screen family members who would accompany employeeInterview & screen family members who would accompany employee

21. Copyright © 2005 South-Western. All rights reserved.1–21 Exhibit 8-4 Strategic Issues in Staffing

22. Copyright © 2005 South-Western. All rights reserved.1–22 Reading 8.1 Hiring for Organization, Not Job New model of selection geared toward hiring “whole” person who fits into organization’s cultureNew model of selection geared toward hiring “whole” person who fits into organization’s culture “Strong situation”“Strong situation” –Intensity of situation suppresses variation in behavior attributable to person “Weak situation”“Weak situation” –Allows range of employee responses to work requirements In organizations that are “weak situations”In organizations that are “weak situations” –More important to do good job of hiring right people New model of selection geared toward hiring “whole” person who fits into organization’s cultureNew model of selection geared toward hiring “whole” person who fits into organization’s culture “Strong situation”“Strong situation” –Intensity of situation suppresses variation in behavior attributable to person “Weak situation”“Weak situation” –Allows range of employee responses to work requirements In organizations that are “weak situations”In organizations that are “weak situations” –More important to do good job of hiring right people

23. Copyright © 2005 South-Western. All rights reserved.1–23 Reading 8.1 Hiring Process for Person-Organization Fit Assess overall work environmentAssess overall work environment –Job analysis –Organizational analysis Infer type of person requiredInfer type of person required –Technical knowledge, skills & abilities –Social skills –Personal needs, values & interests –Personality traits Assess overall work environmentAssess overall work environment –Job analysis –Organizational analysis Infer type of person requiredInfer type of person required –Technical knowledge, skills & abilities –Social skills –Personal needs, values & interests –Personality traits

24. Copyright © 2005 South-Western. All rights reserved.1–24 Reading 8.1 Hiring Process for Person-Organization Fit Design “rites of passage” for organization entry that allow both organization and applicant to assess their fitDesign “rites of passage” for organization entry that allow both organization and applicant to assess their fit –Tests of cognitive, motor & interpersonal abilities –Interviews by potential coworkers & others –Personality tests –Realistic job previews, including work samples Reinforce person-organization fit at workReinforce person-organization fit at work –Reinforce skills & knowledge through task design & training –Reinforce personal orientation through organization design Design “rites of passage” for organization entry that allow both organization and applicant to assess their fitDesign “rites of passage” for organization entry that allow both organization and applicant to assess their fit –Tests of cognitive, motor & interpersonal abilities –Interviews by potential coworkers & others –Personality tests –Realistic job previews, including work samples Reinforce person-organization fit at workReinforce person-organization fit at work –Reinforce skills & knowledge through task design & training –Reinforce personal orientation through organization design

25. Copyright © 2005 South-Western. All rights reserved.1–25 Reading 8.1 Potential Benefits & Problems with Hiring for Person-Organization Fit Potential benefitsPotential benefits –More favorable employee attitudes –More desirable individual behaviors –Reinforcement of organizational design Potential problemsPotential problems –Greater investment of resources in hiring process –Relatively undeveloped & unproven supporting selection technology –May be difficult to use full model where payoffs are greatest –Lack of organizational adaptation Potential benefitsPotential benefits –More favorable employee attitudes –More desirable individual behaviors –Reinforcement of organizational design Potential problemsPotential problems –Greater investment of resources in hiring process –Relatively undeveloped & unproven supporting selection technology –May be difficult to use full model where payoffs are greatest –Lack of organizational adaptation

26. Copyright © 2005 South-Western. All rights reserved.1–26 Reading 8.2 Reasons for Expatriate Early Departure Not performing job effectively48.4%Not performing job effectively48.4% Received other, more rewarding offer (other co.)43.7%Received other, more rewarding offer (other co.)43.7% Expatriate or family not adjusting36.6%Expatriate or family not adjusting36.6% Expatriate or family missing home31.0%Expatriate or family missing home31.0% Received more rewarding offer (current co.)17.2%Received more rewarding offer (current co.)17.2% Unable to adjust to deprived living standards10.3%Unable to adjust to deprived living standards10.3% Concerned with problems of safety & health10.3%Concerned with problems of safety & health10.3% Believed children’s education was suffering 7.1%Believed children’s education was suffering 7.1% Feared assignment would slow career advance 7.1%Feared assignment would slow career advance 7.1% Spouse wanted career 6.1%Spouse wanted career 6.1% Compensation package inadequate 0.0%Compensation package inadequate 0.0% Not performing job effectively48.4%Not performing job effectively48.4% Received other, more rewarding offer (other co.)43.7%Received other, more rewarding offer (other co.)43.7% Expatriate or family not adjusting36.6%Expatriate or family not adjusting36.6% Expatriate or family missing home31.0%Expatriate or family missing home31.0% Received more rewarding offer (current co.)17.2%Received more rewarding offer (current co.)17.2% Unable to adjust to deprived living standards10.3%Unable to adjust to deprived living standards10.3% Concerned with problems of safety & health10.3%Concerned with problems of safety & health10.3% Believed children’s education was suffering 7.1%Believed children’s education was suffering 7.1% Feared assignment would slow career advance 7.1%Feared assignment would slow career advance 7.1% Spouse wanted career 6.1%Spouse wanted career 6.1% Compensation package inadequate 0.0%Compensation package inadequate 0.0%

27. Copyright © 2005 South-Western. All rights reserved.1–27 Reading 8.3 Frequently Mentioned Obstacles to Global Staffing System Legal requirements across countries/regionsLegal requirements across countries/regions Education system across countries/regionsEducation system across countries/regions Economic conditions across countries/regionsEconomic conditions across countries/regions Ability to acquire & use technologyAbility to acquire & use technology Labor market variationsLabor market variations Value differences across culturesValue differences across cultures Availability of off-the-shelf translated toolsAvailability of off-the-shelf translated tools Legal requirements across countries/regionsLegal requirements across countries/regions Education system across countries/regionsEducation system across countries/regions Economic conditions across countries/regionsEconomic conditions across countries/regions Ability to acquire & use technologyAbility to acquire & use technology Labor market variationsLabor market variations Value differences across culturesValue differences across cultures Availability of off-the-shelf translated toolsAvailability of off-the-shelf translated tools Level of HR experience varies across regionsLevel of HR experience varies across regions Role of HR in hiring varies across regionsRole of HR in hiring varies across regions Familiarity with a tool or practice variesFamiliarity with a tool or practice varies Misperceptions that something is a cultural differenceMisperceptions that something is a cultural difference Limited local resources for implementationLimited local resources for implementation Beliefs about whether a global system is US-centric or imposedBeliefs about whether a global system is US-centric or imposed

28. Copyright © 2005 South-Western. All rights reserved.1–28 Reading 8.3 Frequently Mentioned Benefits to Global Staffing System Global database of qualified talentGlobal database of qualified talent Quick identification of candidates to meet needs of specific locationQuick identification of candidates to meet needs of specific location Provision of consistent message about company to candidates worldwideProvision of consistent message about company to candidates worldwide Quality of all hires is ensuredQuality of all hires is ensured Better understanding of country/regional needs by all HRBetter understanding of country/regional needs by all HR Global database of qualified talentGlobal database of qualified talent Quick identification of candidates to meet needs of specific locationQuick identification of candidates to meet needs of specific location Provision of consistent message about company to candidates worldwideProvision of consistent message about company to candidates worldwide Quality of all hires is ensuredQuality of all hires is ensured Better understanding of country/regional needs by all HRBetter understanding of country/regional needs by all HR Global succession planning is enabledGlobal succession planning is enabled Global HR personnel have access to the latest versions of products/toolsGlobal HR personnel have access to the latest versions of products/tools Shared vision of HR globallyShared vision of HR globally Comparisons of staffing results across locationsComparisons of staffing results across locations Global database as internal benchmark of achievement in different parts of worldGlobal database as internal benchmark of achievement in different parts of world