Staffing Organizations

1. Staffing Organizations Prof. John Kammeyer-Mueller MGT 6366

2. Staffing What does staffing entail? Figuring out how many people you need to hire Deciding whether to �make� or �buy� talent Understanding whom you need to hire Maintaining consistency with legal requirements Developing recruiting plans Selecting the best employees from those who apply and show interest Retaining existing employees Use this as a method to introduce the course and the course web page.Use this as a method to introduce the course and the course web page.

3. Goals for the Course Learn how staffing fits into the organization Strategy leads to staffing choices Staffing leads to strategic choices Learn how to learn about staffing Statistical techniques Implementation techniques and practices Learning about staffing will help you: (A) learn how to succeed in your careers and (B) help the organizations where you work succeed. Use this as a method to introduce the course and the course web page.Use this as a method to introduce the course and the course web page.

4. Introduction to the Course Casebook Yes, I did write the case myself Tanglewood department stores concept Retail is a high visibility industry The core problems are similar to most customer service companies face You act as an external consultant with new and unique skills to offer them All information will be posted on the web and updated regularly

5. A quick quiz on staffing:True or false? You can legally refuse to hire someone based on their zodiac symbol. Legally, companies can only give name, position title, and years of employment to companies who are asking for references. The most valid employment interviews are designed around each candidate�s unique background. Surveys that directly ask employees how important pay is to them are likely to overestimate pay�s true importance in actual decisions related to employment. Although there are �integrity tests� that try to predict whether someone will steal, be absent, or otherwise take advantage of an employer, they don�t work in practice because people lie on them. On average, applicants who answer job advertisements are likely to have higher turnover than those referred by other employees. On average, conscientiousness is a better predictor of job performance than is intelligence. Companies that screen job applicants for values have higher performance than those that screen for intelligence.

6. Science vs. common sense: An object lesson You can legally refuse to hire someone based on their zodiac symbol. TRUE Companies can only give name, position title, and years of employment to companies who are asking for references. FALSE The most valid employment interviews are designed around each candidate�s unique background. FALSE (70% of HR managers get this right) Surveys that directly ask employees how important pay is to them are likely to overestimate pay�s true importance in actual decisions related to employment. FALSE (35% of HR managers get this right)

7. Science vs. common sense: An object lesson Although there are �integrity tests� that try to predict whether someone will steal, be absent, or otherwise take advantage of an employer, they don�t work in practice because people lie on them. FALSE (32% of HR managers get this right) On average, applicants who answer job advertisements are likely to have higher turnover than those referred by other employees. TRUE (49% of HR managers get this right) On average, conscientiousness is a better predictor of job performance than is intelligence. FALSE (18% of HR managers get this right) Companies that screen job applicants for values have higher performance than those that screen for intelligence. FALSE (16% of HR managers get this right)

8. Another quick quiz�What do you think are effective methods? Application blank (e.g., years of work experience, education, schools attended) Biodata inventory (e.g., life activities) Cognitive ability test (like an IQ test) Conscientiousness personality test Integrity test Reference check Unstructured interview Work sample

9. Just how bad is staffing in some companies?

10. Just how bad is staffing in some companies?

11. Just how bad is staffing in some companies?

12. And what is the point of these trick questions? There are many myths and inaccurate beliefs regarding the efficacy of various staffing practices Empirical research on staffing can help to dispel these myths and put us on a firmer ground from which to make decisions

13. HR Metrics There has been a growing push to quantify HR If HR cannot answer questions about the costs and benefits of their programs, they lack credibility If companies cannot assess returns on investments on HR programs, they will not choose optimal solutions HRIS makes quantifying HR much easier Major types of HR metrics Services Costs Attitudes Performance

14. A Structural Model of Staffing and Firm Performance

15. Staffing is Associated with Real Results Human capital focused HR is associated with product quality and employee productivity Selection sophistication and profit r=0.48. Use of cognitive ability tests, structured interviews, and validation studies is significantly correlated with organizational profit and profit growth A 1 SD increase in HPWP is associated with a profitability increase of $3,814 per employee Discrimination lawsuit losses leads to a $2-for-$1 dollar of settlement reduction in firm stock price

16. Staffing is Associated with Real Results Companies that initiate commitment-oriented human resources systems have lower turnover rates Companies that engage in information sharing, internal staffing, and other participation methods have lower turnover rates (about 7% lower for each SD change in HPWP)

17. Staffing can be a unique source of competitive advantage Competitive advantage Something you have that other companies don�t have Sustained competitive advantage occurs when you have something that is difficult to imitate Staffing is contingent Each step in the staffing process depends on all other elements and they may not apply to all situations Isomorphic pressures due to industry and occupation dictate some HR practices Less obvious examples�HR systems have complex elements that need to work together

18. 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? This is not an abstract question, HR magazine covered healthcare companies that engage in �quick decision� hiring recently because their turnover rates are too high to use traditional hiring

19. Nature of Staffing 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

20. Changes in the Market for HR Professionals Outsourcing Much of the core HR work is now done by firms with a specific organizational focus Services include recruiting message development, developing of selection test batteries, employee talent management systems, benefits packages Technology HR is become more quantitative because of an increased capability to integrate disparate pieces of data Many core HR tasks like payroll have been automated Some software designs even allow companies to determine their legal compliance

21. The Staffing Components Model

22. Staffing for your job:How did it happen? Recruitment Why did you apply for this job? What did you do to make yourself attractive? Selection How did you learn about the jobs requirements and rewards? How did you assess your fit to these? Employment Why did you accept the job? Recruitment How did they identify you as an applicant? How did they make the job attractive to you? Selection What techniques were used to learn about your knowledge, skills, and abilities? Employment Why do you think the company stayed with you? What did the final offer look like?

23. Staffing is Contingent�Examples of Variations Police department staffing example (Madison, WI) Thirty position openings Police recruited 1,284 initial applicants Those with driver�s license, vision correctable to 20/20 and no felony record took a test Of the 900 minimally qualified, 200 of the best test performers were selected for physical ability test Of the 68 who passed the physical test, 40 passed a background check and panel interview Of those who passed this stage, the final 30 individuals were individually selected by the police chief

24. Staffing is Contingent�Examples of Variations Automobile plant staffing example Toyota�s assembly plant in Georgetown, Kentucky has received over 200,000 applications for 7,500 assembly jobs since 1986 Applicants go through an initial assessment test Those who remain go to a simulated work day by screwing bolts, inspecting parts, and take some written tests Some self-select out of the applicant pool after of the simulated day of work Interviews follow for those who remain

25. Staffing is Contingent�Examples of Variations University staffing Initial placement of a position description through professional groups and the Chronicle of Higher Education Individuals submit application materials including samples of their work, an academic vitae, and professional references The hiring committee reviews these applications and invites a set of 5-10 individuals to discuss job opening at professional conferences A final set of three individuals are flown to the university for a day of interviews and a job talk Final hiring is done through a consensus of all members of the academic department

26. Staffing is Contingent�Examples of Variations Achievement Plus director New position, never been staffed before. The position is shared between two existing organizations�a school district and a charitable foundation Committee of individuals within the foundation and representatives from the school district developed a list of principles They solicited applicants, including school administrators, civic leaders, and education experts R�sum�s of internal and external individuals were reviewed jointly, together with statements of intent Large committee interviews and several ongoing one-on-one interviews were conducted in the final stage

27. Exh. 1.7: Strategic Staffing Decisions Staffing Levels Acquire or develop talent Hire yourself or outsource External or internal hiring Core or flexible workforce Hire or retain National or global Attract or relocate Overstaff or understaff Short- or long-term focus Staffing Quality Person/Job or Person/Organization match Specific or general KSAOs Exceptional or acceptable workforce quality Active or passive diversity

28. Ways of Matching: Fit with Organization, Group, and Job

29. Concepts: Person/OrganizationMatch 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 peoplewho could perform multiple jobs Future jobs Long-term matches during employment relationship

30. Person-Organization Fit:Why Does it Matter? Employment relationship perspective People accept jobs based on rewards Employees are concerned mostly with meeting their desires Values congruence indirectly affects need fulfillment through rewards offered and desired Social identity perspective People classify themselves based on group membership and wish to associate with groups that match their identity Congruence is more important than need fulfillment Research has shown that it�s not an either-or thing, both of these perspectives matter

31. Exh. 1.3: Person/Job Match

32. 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

33. Exh. 1.4: Person/Organization Match

34. Discussion Questions Would it be desirable to hire people only according to the person/job match, ignoring the person/organization match? Why? How are staffing activities influenced by training or compensation activities?

35. Job Analysis: Tools to Improve Person-Job Fit Job analysis: the process of gathering information related to the activities performed on a job. Job description: The tasks and duties which are performed on the job. Emptying all garbage cans on the 2nd floor Coordinating meetings schedules Developing a marketing strategy Job specification: The qualifications that are required to perform the job. Knowledge of spreadsheet software programs Skill in the repair of copiers Ability to work cooperatively in small groups

36. What Do We Measure in Job Analysis? Tasks, duties and responsibilities The actual things that people do on the job Objectively observable KSAOs Knowledge: declarative (what�s a spreadsheet) Skills: procedural (how do I run a spreadsheet) Abilities: capacity to develop new knowledge and skills Other traits: personality characteristics

37. Job Requirements Matrix

38. Competency-Based Job Analysis Nature of competencies an underlying characteristic of an individual that contributes to job or role performance and to organizational success Usage reflects a desire to: connote job requirements that extend beyond the specific job itself describe and measure the organization�s workforce in more general terms as a way of increasing staffing flexibility in job assignments

39. KSAOs or Competencies? Similarities between competencies and KSAOs Both reflect an underlying ability to perform a job Differences between competencies and KSAOs Competencies are much more general May contribute to success on multiple jobs Contribute not only to job performance but also to organizational success

40. Examples of Competencies

41. 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

42. The �Great Eight� Competencies Leading: initiates action, gives direction Supporting: shows respect, puts people first Presenting: communicates and networks effectively Analyzing: thinks clearly, applies expertise Creating: thinks broadly, handles situations creatively Organizing: plans ahead, follows rules Adapting: responds to change, copes with setbacks Performing: focuses on results, shows understanding of organization

43. Ethical Issues Issue 1 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.

44. For Next Time Read the first case in the casebook Answer questions regarding the company and its strategic staffing choices