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CHAPTER TWELVE

CHAPTER TWELVE. Final Match. 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. Organization. Vision and Mission Goals and Objectives. Organization Strategy.

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CHAPTER TWELVE

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  1. CHAPTER TWELVE Final Match 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.

  2. Organization Vision and Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Organizations Model 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

  3. Employment Contracts Requirements for Enforceable Contract Parties to Contract Form of Contract Disclaimers Contingencies Other Employment Contract Sources Unfulfilled Promises Job Offers Strategic Approach to Job Offers Job Offer Content Job Offer Process Formulation of Job Offer Presentation of Job Offer Job Offer Acceptance and Rejection Reneging New Employee Orientation & Socialization Legal Issues Chapter Outline

  4. Employment Contracts • Requirements for enforceable contract • Parties to contract • Form of contract • Disclaimers • Contingencies • Other employment contract sources • Unfulfilled promises

  5. Employmentcontract Employment Contracts • Requirements for enforceable contract • Offer • Acceptance • Consideration • Parties to contract • Employee or independent contractor • Third parties

  6. Employment Contracts(continued) • Form of contract • Written contract • Suggestions • Oral contract • One-year rule • Parole evidence • Suggestions • Disclaimers • Oral or written statement explicitly limiting an employee right and reserving that right for employer • Recommendations for enforcement

  7. Employment Contracts(continued) • Contingencies • Extending a job offer contingent on certain conditions being fulfilled by offer receiver • Other employmentcontract sources • Employee handbooks • Oral statements made by employer representatives

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

  9. Job Offers • Strategic Approach to Job Offers • Job offer content

  10. Exh. 12.1: Strategic Approach to Job Offers Labor Market Conditions Supply availability Tightness Organization Needs Short and Long Term Outcomes Cost Control Job Offer (Employee Value Proposition) Applicant Needs Rewards Sought Willingness to Leave Job Legal Issues Contract Language EEO/AA Goals

  11. Starting date Duration of contract Compensation Starting pay Flat vs. differential rates Exh. 12.2: Example of Starting Pay Policies Variable pay Short term Long term Benefits - Exh. 12.3 Hours Special hiring inducements Hiring bonuses Relocation assistance Hot skill premiums Severance packages Restrictions on employees Other terms and conditions Acceptance terms Sample job offer letter Exh. 12.4 Job Offer Content

  12. Job Offer Process • Formulation of job offer • Presentation of job offer • Job offer acceptance and rejection • Reneging

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

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

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

  16. Formulation of Job Offer(continued) • Strategies for presenting initial offer • Lowball • Competitive • Best shot

  17. Presentation of Job Offer • Two approaches • Mechanical approach • Sales approach • Exh. 12.7: Example of a Sales Approach to Job Offers

  18. Exh. 12.7: Example of aSales Approach to Job Offers

  19. Job Offer Process:Acceptance, Rejection, Reneging • Acceptance • Rejection • By organization • By offer receiver • Reneging • Exh. 12.8: Organization Actions to Dealwith Reneging

  20. New EmployeeOrientation and Socialization • Orientation • Exh. 12.9: New Employee Orientation Program Suggestions • Socialization • Content • People • Performance proficiency • Organization goals and values • Politics • Language • History • Delivery

  21. Legal Issues • Authorization to work • Under IRCA, company is prohibited fromhiring or continuing to employan alien not authorized to work in U.S. • Negligent hiring • Workplace torts issue involving claims by an injured plaintiff that plaintiff was harmed by an unfit employee who was negligently hired by company • Employment-at-will • Involves right of either employer or employee to unilaterally terminate employment relationship

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

  23. Ethical Issues • Issue 2 • An organization has a staffing strategy in which it over-hires by 10% the number of employees it will actually need in any job category in order to ensure it meets its hiring needs. It reasons that some of the new hires will renege on the accepted offer, and that the organization can renege on some of its offers if need be to end up with the right number of new hires. Evaluate this strategy from an ethical perspective.

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