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Staffing

Staffing. Chapters 1 – 4. Chapter 1 – The Nature of Staffing. The Big Picture 55% of all worksites are fewer than 100 employees Total costs for employees is 25% of an organization’s revenue. Chapter 1 – The Nature of Staffing. Valuing Human Capital

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Staffing

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  1. Staffing Chapters 1 – 4

  2. Chapter 1 – The Nature of Staffing • The Big Picture • 55% of all worksites are fewer than 100 employees • Total costs for employees is 25% of an organization’s revenue

  3. Chapter 1 – The Nature of Staffing • Valuing Human Capital • Human capital is intangible, but value can be estimated: • Organization’s Stock value – Organization’s tangible assets ($) = Human Capital Value

  4. Chapter 1 – The Nature of Staffing • Staffing • Process of acquiring, deploying and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness

  5. The Nature of Staffing • Acquire – planning for positions, recruiting, selection, etc. • Deploy – placing new hires into jobs • Retention – manage flow of employees out of the organization

  6. The Nature of Staffing • Work with your team members to complete the case “Staffing your own job” on page 33.

  7. The Nature of Staffing • Staffing Models • Quantity – concerned with positions and requirements • Quality – concerned with aligning individuals with jobs (person/job match) or organizations (person/organization match)

  8. The Nature of Staffing • Staffing Models • Quantity • Projected staffing requirements compared to projected staffing availabilities • Determine overstaffing, understaffing or fully staffed

  9. The Nature of Staffing • Staffing Models • Quality • Job, organizational values, all possible jobs now and in the future • Person (KSAOs, motivation) • To attain HR outcomes: attraction, performance, retention, attendance, satisfaction, etc.

  10. The Nature of Staffing • Strategic Decisions in Staffing (Exhibit 1.7) • Levels • Aquire v. Develop • Lag v. Lead • Quality • Person/job v. Person/organization • Specific v. general KSAOs

  11. The Nature of Staffing • Group Discussion • Are some of the 13 strategic decisions more important than the others? • Which ones and why?

  12. Chapter 2 – Legal Compliance • Employee-Employer relationship • At-will employment • Independent contracting • Temporary employees • Out-sourced employees

  13. Legal Compliance • Law and regulations to balance power and protect employees and employers • Based on common law, constitutional and statutory law, executive orders and agencies (Exhibit 2.2)

  14. Legal Compliance • EEO – Equal Employment Opportunity • Facially neutral practices • AA – Affirmative Action • Remedy effects of past discrimination • Quotas • Focus on staffing results; voluntary unless court ordered as part of AA planning

  15. Legal Compliance Claims of discrimination require evidence or proof. Effects can be shown by: • Disparate Treatment • Disparate Impact

  16. Legal Compliance Disparate Treatment: (page 56) 1. person belongs to protected class 2. person was qualified 3. person was rejected 4. position remained open and applicants as qualified were recruited

  17. Legal Compliance Disparate Impact: (page 57) Applicant flow statistics Stock statistics Concentration statistics

  18. Legal Compliance Application Flow Statistics Significant differences in selection rates between groups Selection Rate • ApplicantsHired#hired/#app • 50 men 25 25/50 = 50% • 45 women 5 5/45 = 11%

  19. Legal Compliance Application Flow Statistics – Adverse Impact 4/5ths rule or 80% rule The hiring rate for the protected class must be at least 80% of the hiring rate for the non-protected class

  20. Legal Compliance Selection Rate • ApplicantsHired#hired/#app • 50 men 25 25/50 = 50% • 45 women 5 5/45 = 11% • .80(50) = 40 • 11% is less than 40%, therefore, there may be adverse impact

  21. Legal Compliance Your Turn… • Recently ABC, Inc. advertised for computer programmers. Seventy minority and 80 non-minority applicants applied for the positions. ABC hired 55 non-minority and 7 minority applicants. Is there disparate impact?

  22. Legal Compliance Selection Rate • ApplicantsHired#hired/#app • 80 Non-minority 55 55/80 = 68% • 70 Minority 7 7/70 = 10% • .80(68) = 54% • 10% is less than 54%, therefore, likely that there is adverse impact.

  23. Legal Compliance Your Turn… • At Heneman and Judge, Inc. a recent recruiting campaign was conducted to hire several new entry level managers. There were 200 male and 220 female applicants. Twelve men and 32 women were hired. Is there disparate impact?

  24. Legal Compliance Selection Rate • ApplicantsHired#hired/#app • 200 men 12 12/200 = 6% • 220 women 32 32/220 = 14% • See page 57 (top), “…protected characteristic…”

  25. Legal Compliance • Stock Statistics • Underutilization of women and minorities relative to their availability in the relevant* population • *relevant = qualified, interested, geographic

  26. Legal Compliance • Stock Statistics • HiredAvailable Men 90% 70% Women 10% 30% 100% 100% • Disparity between 10% hired and 30% available

  27. Legal Compliance • Your Turn… • HiredAvailable • Minority 20% 40% • Non-minority 80% 60% • Disparity? Explain.

  28. Legal Compliance • Concentration Statistics • Concentration of women and minorities in certain job categories

  29. Legal Compliance • Concentration Statistics • ClericalProductionSalesManagers • % men 3 85 45 95 • % women 97 15 55 5 Is there Disparity within certain job categories?

  30. Legal Compliance • Your Turn… • ClericalProductionSalesManagers • % minority 20 90 25 15 • % non-minority 80 10 75 85 Is there Disparity within certain job categories?

  31. Legal Compliance • Major Federal EEO/AA laws: • Title VII of the CRA (1964, 1991) • Race, color, religion, sex, national origin • Age Discrimination in Employment Act (ADEA) (1967) • 40 or over • Americans with Disabilities Act (ADA) (1990) • Qualified individual with a disability

  32. Legal Compliance • Major Federal EEO/AA laws enforced by the OFCCP (Office of Federal Contract Compliance Programs) v. EEOC (Equal Employment Opportunity Commission) for federal contracts: • Rehabilitation Act (1973) • Individual with a handicap (OFCCP, Office of Federal Contract Compliance Programs) • Executive Order 11246 (1965) • Race, color, religion, national origin, sex

  33. Legal Compliance • To rebut charges of adverse/disparate impact, employers must show staffing practices are job-related and consistent with business necessity. • Exception: business necessity can’t be used to justify intentional discrimination

  34. Legal Compliance • Employers can use: • BFOQ – sex, religion, national origin, age (not race or color) • Testing (no score adjustments) • Seniority

  35. Legal Compliance • Work in your groups to complete the case “Age Discrimination in Promotion?” on page 80. • Odd-numbered groups and named groups (e.g., Aces, 3s, 5s, etc.) complete question #1 only. • Even-numbered groups complete question #2 only.

  36. Legal Compliance • Uniform Guidelines on Employee Selection Procedures (UGESP) • www.eeoc.gov/regs

  37. Legal Compliance • EEO best practice criteria: (page 71) • Complies with the law • Promotes EEO • Manifests management commitment/accountability • Ensures management and employee commitment • Produces noteworthy results • Does not cause or result in unfairness • See SPLENDID on page 71 for EEO programs

  38. Legal Compliance • Become more aware of your field requirements: • PIHRA (Professionals in HRM) www.pihra.org • SHRM (Society for HRM) www.shrm.org • Both have student memberships ($30 & $35)

  39. Legal Compliance • Become more aware of your field requirements: • Certification for HRM professionals • PHR (Professional in HRM) • SPHR (Senior Professional in HRM) • GPHR (Global Professional in HRM) • Finance – the language of business

  40. Chapter 3 - Planning • External influences on staffing: • Economic conditions • Labor markets • Labor unions

  41. Planning • Five Steps of Human Resource Planning (HRP): • 1. determine future HR requirements • 2. determine future HR availabilities • 3. conduct ext. and int. environmental scan • 4. determine gaps (required v. available) • 5. develop action plan to close the gap

  42. Planning • Forecasting HR requirements • Statistical techniques • Judgmental techniques

  43. Planning • Statistical techniques • Ratio Analysis – people to $sales $sales / 1 FTE If we can currently do $2,000,000 in business with 10 full-time equivalent employees (or $200,000 sales per 1 FTE), then for every additional $200,000 in business we would expect to hire one FTE.

  44. Planning • Statistical techniques • Regression Analysis – prediction of an outcome based on several factors • Why do we hire new people?

  45. Planning • Regression Analysis For example based on our projection of new customers and sales volume: Y = a + b1x+ b2x + b3x …bnx Where Y = dependent on x, and x is independent (changing)

  46. Planning • Regression Analysis We can predict needed FTEs depending upon projected sales of $1,000,000 and 300 new customers: Y = a + b1x+ b2x + b3x …bnx FTEs = 7 + .0004(1,000,000) + .03(300) = 413 new hires or FTEs

  47. Planning • Judgmental technique • Decision-makers gather information and subjectively evaluate it. • Who should the “decision-makers” be?

  48. Planning • We just saw that statistical techniques such as regression and ratio analysis can be used to predict HR requirements, now we turn to HR Availability.

  49. Planning • Forecasting HR Availabilities • Statistical techniques • Markov Analysis – count # employees in each job/category at time T (past) and where there are in time T+1 (now) • #employees in job at T+1 / #employees in job at T • If 240 employees in job A now, but 400 in that job in the past, 240/400 = .60 (transition probability)

  50. Planning Markov Analysis • T+1 T Exit Sales clerk (S1) 80 120 20 Senior sales clerk (S2) 60 55 2 Sales supervisor (S3) 20 18 0 For T+1, S1: 20 people quit, 20 people were promoted to S2, and 0 people were promoted to S3

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