Staffing Organizations

Prof. John KammeyerMueller MGT 6366

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

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.

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 candidates unique background. Surveys that directly ask employees how important pay is to them are likely to overestimate pays 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 dont 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.

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 candidates 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 pays true importance in actual decisions related to employment.
FALSE (35% of HR managers get this right)

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 dont 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)

Just how bad is staffing in some companies?

Psychics Add New Dimension in Recruitment Hy Kaplan and Phyllis Schwartz, principals of Advisor Associates in Cherry Hill, N.J., offer a unique service to help companies make the best hiring decisions. Theyre psychic consultantsThe psychics never meet the applicants they do readings on; they dont see any photographs. The only information they need to conduct a psychic reading is name, age, gender, the city/town where the person lives and the job position for which he or she is being hired. For example, if they were given only the name and town of Robert Smith, they could obtain psychic information on any one of at least a dozen Robert Smiths living there. To conduct the reading, Kaplan and Schwartz mentally focus on the five pieces of information. They sit together in their office, close their eyes and talk out loud as they receive their psychic information. Have they ever been wrong? Kaplan says if they have, hes not aware of it. In fact, he claims an accuracy rate of 93% and would claim 100% if he had received results back from all their clients. But 93% is enough for Kaplan to feel justified in charging companies $1,000 or more per assessment. Thats very cheap, he says. From HRFOCUS

Just how bad is staffing in some companies?

Whats Your Sign? Companies Use Otherworldly Assessment Methods to Choose Right Employees Martha E. Ramsey, an astrologer and American Federation of Astrology research member from Arizona, knows several astrologers who counsel business executives looking for additional information on future employees. If employers want to go the astrology route, they need a birthdate, birthplace, and time of birth for an astrologer to make the applicants chart. On each chart are three elements which dictate the personality type: the sun, the moon and the ascendant. Those searching for a more scientific approach to hiring may want to consider handwriting assessments. From PERSONNEL JOURNAL

Another quick quizWhat 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

Just how bad is staffing in some companies?

Selection method
Integrity test Reference check

Validity rank

Use rank

Application blank
Work sample Conscientiousness test Unstructured interview Cognitive ability test Biodata inventory

Just how bad is staffing in some companies?

Selection method
Work sample Cognitive ability test Biodata inventory Integrity test Conscientiousness test Unstructured interview Reference check Application blank

Validity rank
1 (0.54) 2 (0.53) 3 (0.37) 4 (0.34) 5 (0.31) 6 (0.23) 7 (0.16) 8 (0.10)

Use rank

Just how bad is staffing in some companies?

Selection method
Work sample Cognitive ability test Biodata inventory Integrity test Conscientiousness test Unstructured interview Reference check

Validity rank
1 (0.54) 2 (0.53) 3 (0.37) 4 (0.34) 5 (0.31) 6 (0.23) 7 (0.16)

Use rank
4 (15-20%) 6 (15-20%) 8 (10-15%) 7 (10-15%) 5 (15-20%) 2 (90+%) 3 (80+%)

Application blank

8 (0.10)

1 (90+%)

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

A Structural Model of Staffing and Firm Performance

Staffing methods
Recruiting good candidates Selecting for skills & abilities Selecting motivated people

Employee development
Learning new skills Developing career tracks

Work outcomes
Improved coordination Reduced turnover Higher productivity

Organization outcomes
Stock prices Lower admin. costs Revenues Customer service

Performance management
Measuring outcomes Rewarding performance

The links in this model have all been empirically substantiated

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

Staffing is Associated with Real Results

Companies that initiate commitmentoriented 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)

Staffing can be a unique source of competitive advantage

Competitive advantage
Something you have that other companies dont 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 examplesHR systems have complex elements that need to work together

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

Nature of Staffing
Definition
Process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organizations effectiveness

Implications of definition
Acquire, deploy, retain Staffing as a process or system Quantity and quality issues Organization effectiveness

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

The Staffing Components Model

Applicant
(person)

Organization
(job)

Recruitment
(identification and attraction)

Selection
(assessment and evaluation)

Employment
(decision making and match)

Staffing for your job: How did it happen?

Recruitment
Why did you apply for this job? What did you do to make yourself attractive?

Recruitment
How did they identify you as an applicant? How did they make the job attractive to you?

Selection
How did you learn about the jobs requirements and rewards? How did you assess your fit to these?

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?

Employment
Why did you accept the job?

Staffing is ContingentExamples of Variations

Police department staffing example (Madison, WI)
Thirty position openings Police recruited 1,284 initial applicants Those with drivers 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

Staffing is ContingentExamples of Variations

Automobile plant staffing example
Toyotas 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

Staffing is ContingentExamples 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

Staffing is ContingentExamples of Variations

Achievement Plus director
New position, never been staffed before. The position is shared between two existing organizationsa 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 Rsums 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

Exh. 1.7: Strategic Staffing Decisions

Staffing Levels
Acquire or develop talent Lag or lead system External or internal hiring Core or flexible workforce Hire or retain National or global Attract or relocate Overstaff or understaff Hire or acquire

Staffing Quality
Person/Job or Person/Organization match Specific or general KSAOs Exceptional or acceptable workforce quality Active or passive diversity

Components of Staffing Organizations Model (continued)

Staffing strategy
An outgrowth of the interplay between organization and HR strategy Involves key decisions regarding acquisition, deployment, and retention of organizations workforce
Guide development of recruitment, selection, and employment programs

Support activities
Serve as foundation for conduct of core staffing activities

Core staffing activities

Focus on recruitment, selection, and employment of workforce

Staffing and retention system management

HR configurations: Matching Sets of HR Practices

Consider two idealized types of HR practices

Internal market
Internal promotion, training, pay for time-in-position, commitment

External market
Almost all external hiring, almost no training, pay only for performance

Images of the Labor Markets

Internal labor market Labor market of experienced managers
Labor market of experienced assistant managers Labor market of new college graduates

External labor market

Head manager

Head manager

Assistant manager

Assistant manager

Management trainee

Team leader

Contemplating the Markets

Advantages of internal
Commitment Stability Consistency Save on hiring

Advantages of external
Flexibility Speed Learn best practices Save on retention

Internal Market Summary

The underlying theme
Use internal markets for jobs with lots of firm specific human capital Use external markets for jobs with low levels of firm specific human capital

Important points to remember

There is no one best way to manage the internal/external labor market question Most companies use internal markets for some jobs, external markets for others

Core or Flexible Workforce

Core workforce
Employees who add considerable value to the organization Perform jobs that cannot be replaced Hiring is long term and high commitment

Flexible workforce
Employees who perform peripheral functions that dont address the organizations strategic advantage Hired through external firms or on a contingency/contract basis

Growth of the Temporary Employee Labor Market

The Logic of Prediction

Predictor Construct Criterion Construct

Predictor Criterion Measure X Measure Y 1. Predictor: Some feature of the person you are hiring 2. Criterion: Some organizationally relevant outcome 3. Construct: Some outcome youd like to achieve 4. Measure: The actual score you observe

The Logic of Prediction

Problem solving ability Successful team leadership

Score on a test Revenues from of IQ team projects Problem solving ability is the predictor construct IQ test score is an actual measure of PSA Successful team leadership is the criterion construct Revenues from projects is an actual measure of success

Challenges Arising from the Logic of Prediction

Developing a theory
What constructs should I examine? Why do I think theyd be related?

Finding good measures

Do they capture the whole outcome? Are they too difficult to collect? Do they have any stability?

Proving relationships
Relationships between measures Relationships between measures and constructs

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

Organization Group Work preferences Personality Demography Culture and values Reward systems Authority/decision making

Job

Task requirements Rewards for this job Authority for this job

Concepts: Person/Organization Match 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 people who could perform multiple jobs

Future jobs
Long-term matches during employment relationship

Major Cultural Dimensions of Organizations

Dimension Change vs. consistency Performance vs. process Support vs. independence Cultural values Innovation, experimentation, risk taking Stability, rule orientation, secure Outcome orientation, action oriented, aggressive Process orientation, bureaucratic, predictable Respect for people, collaborative, team oriented Respect for ideas, independent, individual-oriented

Think about your own preferences for a minute and how this might relate to your experiences in the world of work.

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 its not an either-or thing, both of these perspectives matter

Exh. 1.3: Person/Job Match

Job
Requirements Rewards

HR Outcomes
Attraction Performance Retention Attendance Satisfaction Other

Match

Impact

Person
KSAOs Motivation

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

Exh. 1.4: Person/Organization Match

Organization Values New Job Duties

Job
Requirements Rewards
Multiple Jobs Future Jobs

HR Outcomes
Attraction Performance Retention Attendance Satisfaction Other

Match
Person
KSAOs Motivation

Impact

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?

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

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 (whats a spreadsheet) Skills: procedural (how do I run a spreadsheet) Abilities: capacity to develop new knowledge and skills Other traits: personality characteristics

Job Requirements Matrix

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 organizations workforce in more general terms as a way of increasing staffing flexibility in job assignments

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

Examples of Competencies

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

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

Discussion Questions
Would it be desirable to hire people only according to the person/job match, ignoring the person/organization match? Why? Would it be desirable to hire people only according to the person/organization match, ignoring the person/job match? Why?

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

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 organizations 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.

For Next Time

Read the first case in the casebook Answer questions regarding the company and its strategic staffing choices