Chapter 11

1. Chapter 11 Attracting, Selecting, and Developing Employees

2. Staffing • Staffing involves bringing new people into the organization and then moving them through, and perhaps out of, the firm. • Staffing consists of three stages: • recruiting • selection and hiring • placement • These staffing activities are coupled with the training and development function to match the abilities of the job candidate with the needs of the firm.

3. Staffing or Training? • Should a firm hire people who are ready to step into their jobs, or should it “groom” them through training programs? • With selection and placement, new employees have proven skills and can begin work immediately. • With training and development, people can be hired at lower rates of pay if they come to the firm untrained, and training and development can be tailored exactly to the company’s needs.

4. Training and Development Recruitment, Selection, and Placement Fitting New Employee and Job Together Making Sure That Employees Grow with Their Jobs The Staffing/Training Balancing Act(Figure 11-1)

5. Recruiting • Recruiting is the first of staffing’s three stages. • Recruiting refers to all activities involved in finding interested and qualified applicants for a job opening. • The greater the number of applicants and the better their qualifications, the more likely it is that the firm will build a solid personnel base.

6. The Gillette International Graduate Trainee Program • The program grooms local talent in the countries where the firm has business operations. • Training includes an 18-month term at the company’s Boston headquarters, followed by an entry-level position in the home country. • At headquarters, an executive mentor is responsible for overseeing the trainee’s training and education in Gillette’s operations. • About half the trainees have moved into executive positions, and many have returned to the U.S. or moved to other countries to pursue international careers.

7. Global Staffing at Colgate-Palmolive • Almost 70% of Colgate-Palmolive’s $7 billion in sales come from overseas. 60% of its employees operating outside their home countries come from places other than the U.S. • Two of the last four CEOs were from outside the U.S. • All top executives must speak at least two languages, and important meetings take place all over the globe. • In 1991 a global team of Colgate human resource leaders and senior-level managers began a year-long quest to develop global HR policies that would mesh with business goals. • These efforts culminated in a Global Human Resources conference, with more than 200 HR leaders from more than 35 countries in attendance.

8. Sources of Applicants (Figure 11-3)

9. Sources of Applicants (Figure 11-3)(Continued)

10. America’s Job Bank The Monster Board Internet Recruiting • The Internet is the hottest tool for recruiting. • Search engines such as Yahoo! and Excite as well as bulletin boards and news groups provide job information. • Job Banks include America’s Job Bank, the Monster Board, and others. • Cisco Systems gets 500,000 hits a month on its Internet job pages. It hires 1,200 people every three months, making 66% of its hires from the Net.

11. Merits of internal methods Employees are familiar with the organization. Recruiting and training costs are relatively low. Enhance employee morale and motivation since they send a signal that the organization offers opportunities for advancement. Merits of external methods Introduce new ideas and approaches. Provide knowledge and skills that are not currently available in the organization. Permit new hires to start with clean slates. Reduce political infighting for promotions. Merits of Internal and External Recruiting Sources

12. The Outsourcing Alternative • In the face of increasing demand, evolving needs, or cost considerations firms may use outside parties to perform tasks that would otherwise be performed in house. • This is a popular, rapidly-growing option. • In 1996, American firms spent over $100 billion in outsourced business activities. • By outsourcing some activities, firms can concentrate their resources on their core competencies, the things that they do particularly well.

13. The Realistic Job Preview (RJP) • Most companies present a rosy picture of themselves and their job openings in order to attract job applicants. • As a result, many new employees experience “entry shock” and are dissatisfied when they learn the “truth” about the company. • The aim of realistic job preview (RJP) is to give the recruit an accurate picture of what the company and the job are like. • RJPs lead to higher levels of employee satisfaction and lower levels of turnover. They don’t appear to reduce job acceptance rates.

14. Determine Job Requirements and Employee Qualifications Needed Identify Appropriate Recruiting Sources and Methods Evaluate Recruiting Process Generate Applicant Pool Implement Recruiting Strategy Bottom Line: The Recruiting Process Identify a Job Opening

15. Selection • The role of selection is to evaluate each candidate’s qualifications and pick the one whose skills and interests best match requirements of the job and company. • Some firms use informal selection procedures, such as reviewing application blanks and resumes. Others use formal procedures, such as tests and assessment centers. • Careful selection procedures can be time consuming and costly. They are worthwhile if: • the costs of a wrong decision are high • there are many applicants and few openings • selection tools are accurate

16. Focus on Management: Selection at Toyota • When Toyota Motor Corp. wanted to fill positions at its new Kentucky auto assembly plant, it received 90,000 applications from 120 countries for its 2,700 production jobs and thousands more for the 300 office jobs. • The company wanted to select workers who would conform to its emphasis on teamwork, loyalty, and versatility. • In addition to physical exams and drug tests, applicants had to spend as much as 25 hours completing written tests, workplace simulations, and interviews. • Only 1 of 20 applicants made it to the interview.

17. Application Forms • The application form is the first source of information about a potential employee. • It provides the hiring firm with information about educational background, work experience, and outside interests. • Much of this information is especially useful for screening purposes.

18. Problems with Application Forms • The information provided by the applicant may not be relevant to job performance. • Job applicants may provide incorrect or misleading information. • The law places many restrictions on what can and cannot be asked on a job application.

19. Some Unfair Pre-Employment Inquiries(Excerpted from Figure 11-4) • Any inquiry that implies a preference for people under 40 years of age • Whether applicant is a citizen; any inquiry into citizenship than tends to divulge applicant’s lineage, ancestry, national origin, descent, or birthplace • All inquiries relating to arrests • Request that applicant submit a photograph • Gender • Any inquiry concerning race or color of skin, hair, eyes, etc. • Any inquiry concerning religious denomination, affiliations, holidays observed, etc.

20. Lighten Up: Rotten Resumes • I am extremely loyal to my present firm, so please don’t let them know of my immediate availability. • Note: Please don’t misconstrue my 14 jobs as ‘job hopping.’ I have never quit a job. • Marital status: Often. Children: Various. • Wholly responsible for two (2) failed institutions. • Terminated after saying, “It would be a blessing to be fired.” • I am writing to you, as I have written to all Fortune 1000 companies every year for the past three years, to solicit employment. • It’s best for employers that I not work with people. • Excellent memory; strong math aptitude; excellent memory; effective management skills; and very good at math.

21. Interviews • In an interview, a representative of the hiring firm asks the candidate a series of questions. • The goal of the interview is to determine how well the candidate’s skills and interests match the job requirements. • In a structured interview, all candidates are asked the same list of questions in the same order. This gives each applicant the same chance as others, makes it easier to compare candidates, and makes it less likely the firm will be sued for discrimination in hiring. • In an unstructured interview, there is a looser exchange between the interviewer and job candidate. This may result in a more complete picture.

22. Advantages of Interviews • It is easier to ask a series of questions than to develop a test. • Interviewing makes the selection process more personal and gives the interviewer an overall idea as to whether the applicant is right for the job. • The interview may be used to give the applicant information about the job and company. • Interviews may be used to “sell” the company to the applicant. • Interviews may be be used to complete the information about job candidates. • Good candidates may be unwilling to consider a job seriously unless they had the change to ask questions and gather information.

23. Problems with Interviews • Interviewers: • show many biases • disagree with one another • ignore much of the information available • The success of an interview in identifying the best candidate for the job depends on the skill and good judgment of the individual interviewer. • There are severe legal restrictions on what can be asked in interviews.

24. Guidelines for Improving Interviews • Interviewers should prepare for interviews by making a list of specific topics to be covered and/or specific questions to be asked. • Interviewers should be trained in preparing questions that relate to job requirements, probing for details, listening carefully, and avoiding discriminatory questions. • Interviewers should use behavioral and situational questions. • Written records of the interview should be kept. • Whenever possible, multiple interviewers should be used. • Interviews should be used along with other selection tools.

25. Develop Behavioral and Situational Interview Questions Develop an Interview Rating Form Start Each Interview by Putting the Interviewee at Ease Complete Interview Rating Form Immediately After the Interview Probe Interviewee Responses and Explore Related Issues Ask the Same Questions of Each Interviewee -- Do Not Make Snap Judgments The Bottom Line: The Job Interviewing Process Determine Job Requirements and Employee Qualifications Needed

26. Testing • A test is a systematic and standardized procedure for obtaining information about individuals. • Testing is a relatively objective way to determine how well a person may do on the job. • Many human resource experts and human resource managers believe testing is the single best selection tool. • Tests yield more information about a person than does a completed application form, and they are generally less biased than interviews.

27. Types of Tests • Ability tests measure whether the applicant has certain skills needed to perform the job tasks. • Personality tests measure the strength or weakness of personality characteristics that are considered important for good performance on the job. • Interest tests measure a person’s likes or dislikes for various activities. • Work sample tests measure how well applicants perform selected job tasks.

28. Types of Tests (Continued) • Integrity tests measure an applicant’s honesty. • Drug and impairment tests measure abuse of alcohol or other drugs. • Genetic testing applies the science of genetics to the testing of workers.

29. Mental Ability Tests Psychomotor Ability Tests Mechanical Ability Tests Forms of Ability Tests Ability Tests

30. Integrity Tests • A polygraph (“lie detector”) test is an electronic device used to detect lying. Due to concerns about validity and invasion of privacy, a 1988 federal law outlawed most private uses of pre-employment polygraph tests aimed at assessing employee honesty. • Written “honesty” or “integrity” tests contain items concerning one’s attitudes toward theft and other forms of dishonesty. These may be less valid than the polygraph tests they replace, and may cause resentment. • Many firms use credit checks to judge applicant integrity. There are legal restrictions regarding credit checks.

31. Drug and Impairment Tests • Drug and impairment tests measure abuse of alcohol and other drugs. • Drug tests may involve examination of body fluids, such as urine and blood, or hair, or of reaction of the pupil to light. • In response to concerns about violation of rights of privacy and errors in the testing process, many firms instead use impairment testing. This involves use of activities similar to a video game to measure an employee’s ability to work. • Impairment tests detect impairment due to things such as illness, sleep deprivation, and emotional preoccupation that would be missed by drug tests.

32. Genetic Testing • Genetic testing takes two forms: • genetic monitoring involves periodically testing groups of employees to see whether they are showing any alarming chromosomal abnormalities that might have been caused by their environment. • genetic screening is a one-time analysis of DNA taken from blood or other bodily fluids. It is aimed at finding genetic “markers” that indicate that a person may be especially susceptible to harm from a particular substance. • Genetic monitoring has the approval of most observers since it provides an early warning of dangers from the work environment, but genetic screening is controversial.

33. Focus on Management: Too Smart forthe New London Police Department • The city of New London, Connecticut refused to grant Robert Jordan a job interview because he scored too high on a pre-employment test. • The city’s rationale was that employees who are too smart are likely to be bored in patrol jobs and thus to leave the force. • Jordan sued the department, but a federal judge ruled that the practice of excluding too-bright applicants was constitutional.

34. Test Validity • Validity is the degree to which predictions from the selection device are supported by evidence. • Valid tests are expensive to develop. • Some jobs, such as those of top management, are hard to describe, and the abilities and interests required may be all but impossible to predict on the basis of test results. • In general, ability tests and work sample tests are more valid than other selection tools.

35. Graphology • Graphology, or handwriting analysis, is sometimes used to predict performance. • The theory behind graphology is that handwriting reflects personality. • Graphology is very popular in western Europe; most French companies require applicants to submit handwritten letters. • While graphology is difficult to fake, there is no solid evidence that it predicts job performance.

36. Test Fairness • Everyone agrees that a test should be fair, but few agree on a definition of fairness. • To some people, a test is unfair if it includes questions about things that might be unfamiliar to some people because of their race or ethnic origin. • To other people, a test is unfair if it measures things that aren’t needed on the job but that block some people from being hired. • In the eyes of the law, a fair test is one that does not overpredict or underpredict performance of one group of employees relative to another.

37. Assessment Centers • An assessment center is a collection of systematic procedures to approach the selection process systematically. • The centers employ psychologists and other experts on human behavior as well as providing tests, interviews, group discussions, and other approaches for evaluating job candidates. • Assessment centers may use role playing and in-baskets. • Assessment centers have additional uses, including early detection of management talent and skill development for assessors. • While expensive, assessment centers are quite valid and are seen by employees as offering a fair chance to show abilities.

38. Selecting for Teams • As organizations rely more heavily on teams, they must carefully screen team candidates for their ability to work with other team members. • In putting together a self-directed team, Delta Dental Plan: • spent more than 6 months recruiting and selecting team members. • used a personality test to find members with complementary personality types. • selected some bilingual team members. • selected members from both inside and outside the company. • assessed candidates’ interpersonal skills with interviews by members of the HR department and others.

39. Administer Selection Methods to Applicant Pool Generated by the Recruiting Process Assess Person-Job Fit Assess Person- Organization Fit Evaluate the Process Extend Job Offers and Negotiate Terms with Candidate(s) Reduce Applicant Pool to “Short List” of Top 3-5 The Bottom Line: The Selection Process Identify Selection Methods Based on Job Requirements and Desired Employee Qualifications

40. Placement • Placement means fitting people and jobs together after the people have become employees of the firm. • It includes everything from helping new employees feel at home in the firm to promoting them to positions of greater responsibility or demoting them to less demanding position when necessary.

41. Orientation • Orientation involves introducing new employees to their jobs and to the company. • Orientation: • reduces uncertainties, makes company policies and expectations clear, and provides a good idea of what the firm, plant, and coworkers are like. • sends a signal that the new employee has an important role to play in the organization. • offers a bonding opportunity, ensuring that new hires don’t feel alienated and helping to instill in them a sense of pride and opportunity.

42. Lateral Move • A lateral move is sideways rather than up or down. • One type of lateral move, job rotation, may be used to build worker skills and provide a more solid base for later promotions. • Employees may welcome the change of pace and duties of job rotation, and may develop a greater sense of pride and self-worth as they learn new skills. • Lateral moves are sometimes dictated by organizational changes, such as reorganizations.

43. Lateral Moves at W. R. Grace • W. R. Grace & Company, a chemical and consumer products company, has been using lateral moves for years. • Purposes include: • assignment to special projects for the company’s future • to fill slots at locations far from their current posts • to newly created jobs in other countries • The company’s VP for corporate administration reports that, “They get new challenges, and we get broadened managers -- something a global, decentralized company must have.”

44. Promotion • A promotion is a move up, generally to a new title, more responsibility, and greater financial rewards. • Promotions are valued by employees, and move competent employees to positions with greater impact on the firm’s success. • Promotions also demonstrate to other employees that good performance and potential are rewarded, thus serving as a motivating device. • Promotions must be handled carefully since jobs at different levels may require different skills. If not, the Peter Principle may occur. • Some firms have instituted fallback positions for employees who are unhappy with their promotions.

45. Demotion • A move down in the organizational hierarchy to a lower title, less responsibility, and lower salary is called a demotion. • Demotions are stressful to employees and may be resisted by unions. • Demotions may be necessary. A firm may, for instance, demote rather than fire a poorly-performing employee. Also, especially during economic downturns, employees may prefer demotions to unemployment. • Some firms have experimented with demoting employees temporarily so they can relate better to their subordinates.

46. Termination • Sometimes firings are necessary because employees have continued to perform poorly or because they have been unmotivated or uncooperative. • Firings are traumatic for the terminated individual and costly for the firm. For instance, the firm will have to bear the costs of recruiting and training a replacement. • Employees who are performing below standards should be counseled and given written performance goals and plans for meeting them. • Those employees should have a probationary period and should receive regular feedback over that period.

47. Termination (Continued) • Firing should only be used if corrective efforts fail, as a last resort. • In recent years, many employees have been fired as a result of things having little to do with their motivation or performance, such as technological changes, restructuring, mergers, changes in strategy, and foreign competition. • In some cases, firms hire outplacement companies to assist those who are affected. • There are increasing legal restrictions on firing.

48. Guidelines for Effective Termination • Give as much warning as possible for mass layoffs. • Be sure the employee hears of the termination from a manager, not from a colleague. • Sit down one-on-one in a private office with the individual to be terminated. • Tell the individual in the first sentence that he or she is terminated; leave no room for confusion. • Express appreciation for the employee’s past accomplishments if appropriate.

49. Guidelines for Effective Termination (Continued) • Complete the firing session within 15 minutes. Make the session brief and to the point, not an opportunity for debate. • Keep the conversation professional, avoiding personal comments. • Briefly explain how much severance pay will be provided and for how long; provide written explanations of severance benefits. • Unless security is an issue, don’t rush the employee off site.

50. Training and Development • Training and development helps the firm meet its immediate human resource needs. • Over the long run, training and development ensures that the firm’s employees are ready to meet future challenges. • Training and development takes many forms. • Firms in the U.S. spend an estimated $30 billion annually to train employees.