Staffing OrganizationsProf. John Kammeyer-MuellerMGT 6366

StaffingWhat does staffing entail?Figuring out how many people you need to hireDeciding whether to make or buy talentUnderstanding whom you need to hireMaintaining consistency with legal requirementsDeveloping recruiting plansSelecting the best employees from those who apply and show interestRetaining existing employees

Goals for the CourseLearn how staffing fits into the organizationStrategy leads to staffing choicesStaffing leads to strategic choicesLearn how to learn about staffingStatistical techniquesImplementation techniques and practicesLearning 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 lessonYou can legally refuse to hire someone based on their zodiac symbol.TRUECompanies can only give name, position title, and years of employment to companies who are asking for references.FALSEThe 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 lessonAlthough 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 RecruitmentHy 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 EmployeesMartha 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 testIntegrity testReference checkUnstructured interviewWork sample

- From Judge, T.A. (1997). From both sides now: The impact of I/O Psychology (edited by Allan Church). The industrial organizational psychologist, 35, 108-110.

Just how bad is staffing in some companies?

- From Judge, T.A. (1997). From both sides now: The impact of I/O Psychology (edited by Allan Church). The industrial organizational psychologist, 35, 108-110.

Just how bad is staffing in some companies?

- From Judge, T.A. (1997). From both sides now: The impact of I/O Psychology (edited by Allan Church). The industrial organizational psychologist, 35, 108-110.

Just how bad is staffing in some companies?

- From Judge, T.A. (1997). From both sides now: The impact of I/O Psychology (edited by Allan Church). The industrial organizational psychologist, 35, 108-110.

Discussion QuestionsWhat 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 StaffingDefinitionProcess of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organizations effectivenessImplications of definitionAcquire, deploy, retainStaffing as a process or systemQuantity and quality issuesOrganization effectiveness

Changes in the Market for HR ProfessionalsOutsourcingMuch of the core HR work is now done by firms with a specific organizational focusServices include recruiting message development, developing of selection test batteries, employee talent management systems, benefits packagesTechnologyHR is become more quantitative because of an increased capability to integrate disparate pieces of dataMany core HR tasks like payroll have been automatedSome software designs even allow companies to determine their legal compliance

The Staffing Components ModelApplicant(person)Organization(job)Recruitment(identification and attraction)Selection(assessment and evaluation)Employment(decision making and match)

University of Florida - From Heneman and Judge, 4th Ed., p. 17

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

Staffing is ContingentExamples of VariationsPolice department staffing example (Madison, WI)Thirty position openingsPolice recruited 1,284 initial applicantsThose with drivers license, vision correctable to 20/20 and no felony record took a testOf the 900 minimally qualified, 200 of the best test performers were selected for physical ability testOf the 68 who passed the physical test, 40 passed a background check and panel interviewOf those who passed this stage, the final 30 individuals were individually selected by the police chief

University of Florida - From Heneman and Judge, 4th Ed. p. 28-30.

Staffing is ContingentExamples of VariationsAutomobile plant staffing exampleToyotas assembly plant in Georgetown, Kentucky has received over 200,000 applications for 7,500 assembly jobs since 1986Applicants go through an initial assessment testThose who remain go to a simulated work day by screwing bolts, inspecting parts, and take some written testsSome self-select out of the applicant pool after of the simulated day of workInterviews follow for those who remain

University of Florida - From Heneman and Judge, 4th Ed. p. 28-30.

Staffing is ContingentExamples of VariationsUniversity staffingInitial placement of a position description through professional groups and the Chronicle of Higher EducationIndividuals submit application materials including samples of their work, an academic vitae, and professional referencesThe hiring committee reviews these applications and invites a set of 5-10 individuals to discuss job opening at professional conferencesA final set of three individuals are flown to the university for a day of interviews and a job talkFinal hiring is done through a consensus of all members of the academic department

Staffing is ContingentExamples of VariationsAchievement Plus directorNew position, never been staffed before.The position is shared between two existing organizationsa school district and a charitable foundationCommittee of individuals within the foundation and representatives from the school district developed a list of principlesThey solicited applicants, including school administrators, civic leaders, and education expertsRsums of internal and external individuals were reviewed jointly, together with statements of intentLarge committee interviews and several ongoing one-on-one interviews were conducted in the final stage

HR MetricsThere has been a growing push to quantify HRIf HR cannot answer questions about the costs and benefits of their programs, they lack credibilityIf companies cannot assess returns on investments on HR programs, they will not choose optimal solutionsHRIS makes quantifying HR much easierMajor types of HR metricsServicesCostsAttitudesPerformance

A Structural Model of Staffing and Firm PerformanceStaffing methodsRecruiting good candidatesSelecting for skills & abilitiesSelecting motivated peopleEmployee developmentLearning new skillsDeveloping career tracksPerformance managementMeasuring outcomesRewarding performanceWork outcomesImproved coordinationReduced turnoverHigher productivityOrganization outcomesStock pricesLower admin. costsRevenuesCustomer serviceThe links in this model have all been empirically substantiated

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

- Yount, M.A., Snell, S.A., Dean, J.W., & Lepak, D. P. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal, 39, 86-863. - Dimick, D.E., & Murray, V.V. (1978). Correlates of substantive policy decisions in organizations: The case of human resource management. Academy of Management Journal, 21, 611-623. - Terpstra, D.E., & Rozell, E.J. (1993). The relationship of staffing practices to organizational level measures of performance. Personnel Psychology, 46, 27-48.

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

- Arthur, J. B. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management Journal, 37, 670-687. - Huselid, M.A. (1995). The impact of human resource management practice on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672.

Staffing can be a unique source of competitive advantageCompetitive advantageSomething you have that other companies dont haveSustained competitive advantage occurs when you have something that is difficult to imitateStaffing is contingentEach step in the staffing process depends on all other elements and they may not apply to all situationsIsomorphic pressures due to industry and occupation dictate some HR practicesLess obvious examplesHR systems have complex elements that need to work together

University of Florida - Oliver, SMJ, 1997University of Florida - Oliver, SMJ, 1997

Exh. 1.7: Strategic Staffing DecisionsStaffing LevelsAcquire or develop talentLag or lead systemExternal or internal hiringCore or flexible workforceHire or retainNational or globalAttract or relocateOverstaff or understaffHire or acquireStaffing QualityPerson/Job or Person/Organization matchSpecific or general KSAOsExceptional or acceptable workforce qualityActive or passive diversity

Components of StaffingOrganizations Model (continued)Staffing strategyAn outgrowth of the interplay between organization and HR strategyInvolves key decisions regarding acquisition, deployment, and retention of organizations workforceGuide development of recruitment, selection, and employment programsSupport activitiesServe as foundation for conduct of core staffing activitiesCore staffing activitiesFocus on recruitment, selection, and employment of workforceStaffing and retention system management

HR configurations: Matching Sets of HR PracticesConsider two idealized types of HR practicesInternal marketInternal promotion, training, pay for time-in-position, commitmentExternal marketAlmost all external hiring, almost no training, pay only for performance

Images of the Labor MarketsLabor market of new college graduatesLabor market of experienced assistant managersLabor market of experienced managersManagement traineeAssistant managerHead managerTeam leaderAssistant managerHead managerInternal labor marketExternal labor market

Contemplating the MarketsAdvantages of internalCommitmentStabilityConsistencySave on hiringAdvantages of externalFlexibilitySpeedLearn best practicesSave on retention

Internal Market SummaryThe underlying themeUse internal markets for jobs with lots of firm specific human capitalUse external markets for jobs with low levels of firm specific human capitalImportant points to rememberThere is no one best way to manage the internal/external labor market questionMost companies use internal markets for some jobs, external markets for others

Core or Flexible WorkforceCore workforceEmployees who add considerable value to the organizationPerform jobs that cannot be replacedHiring is long term and high commitmentFlexible workforceEmployees who perform peripheral functions that dont address the organizations strategic advantageHired through external firms or on a contingency/contract basis

Growth of the Temporary Employee Labor Market

The Logic of PredictionPredictor Measure XPredictor ConstructCriterion Measure YCriterion ConstructPredictor: Some feature of the person you are hiringCriterion: Some organizationally relevant outcomeConstruct: Some outcome youd like to achieveMeasure: The actual score you observe

- Binning, J.F., & Barrett, G.V. (1989). Validity of personnel decisions: A conceptual analysis of the inferential and evidential bases. Journal of Applied Psychology, 74, 478-494.

The Logic of PredictionScore on a test of IQProblem solving abilityRevenues from team projectsSuccessful team leadershipProblem solving ability is the predictor constructIQ test score is an actual measure of PSASuccessful team leadership is the criterion constructRevenues from projects is an actual measure of success

Challenges Arising from the Logic of PredictionDeveloping a theoryWhat constructs should I examine?Why do I think theyd be related?Finding good measuresDo they capture the whole outcome?Are they too difficult to collect?Do they have any stability?Proving relationshipsRelationships between measuresRelationships between measures and constructs

Ways of Matching: Fit with Organization, Group, and JobOrganizationGroupCulture and valuesReward systemsAuthority/decision makingJobWork preferencesPersonalityDemographyTask requirementsRewards for this jobAuthority for this job

Concepts: Person/OrganizationMatch ModelOrganizational culture and valuesNorms of desirable attitudes and behaviors for employeesNew job dutiesTasks that may be added to target job over timeAnd other duties as assigned . . . Multiple jobsFlexibility concerns - Hiring people who could perform multiple jobsFuture jobsLong-term matches during employment relationship

Major Cultural Dimensions of OrganizationsThink 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 perspectivePeople accept jobs based on rewardsEmployees are concerned mostly with meeting their desiresValues congruence indirectly affects need fulfillment through rewards offered and desiredSocial identity perspectivePeople classify themselves based on group membership and wish to associate with groups that match their identityCongruence is more important than need fulfillmentResearch has shown that its not an either-or thing, both of these perspectives matter

Exh. 1.3: Person/Job Match

Concepts: Person/Job Match ModelJobs are characterized by their requirements and rewardsIndividuals are characterized via qualifications (KSAOS) and motivationLikely degree of fit between job characteristics and personImplied consequences for every matchConcepts are not newMatching process involves dual matchKSAOs to requirementsMotivation to rewardsJob requirements expressed in terms of bothTasks involvedKSAOs necessary for performance of tasksJob requirements often extend beyond task and KSAO requirements

Exh. 1.4: Person/Organization Match

Discussion QuestionsWould 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 FitJob 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 floorCoordinating meetings schedulesDeveloping a marketing strategyJob specification: The qualifications that are required to perform the job.Knowledge of spreadsheet software programsSkill in the repair of copiersAbility to work cooperatively in small groups

What Do We Measure in Job Analysis?Tasks, duties and responsibilitiesThe actual things that people do on the jobObjectively observableKSAOsKnowledge: declarative (whats a spreadsheet)Skills: procedural (how do I run a spreadsheet)Abilities: capacity to develop new knowledge and skillsOther traits: personality characteristics

Job Requirements Matrix

Competency-Based Job AnalysisNature of competenciesan underlying characteristic of an individual that contributes to job or role performance and to organizational successUsage reflects a desire to:connote job requirements that extend beyond the specific job itselfdescribe and measure the organizations workforce in more general termsas a way of increasing staffing flexibility in job assignments

KSAOs or Competencies?Similarities between competencies and KSAOsBoth reflect an underlying ability to perform a jobDifferences between competencies and KSAOsCompetencies are much more generalMay contribute to success on multiple jobsContribute not only to job performance but also to organizational success

Examples of Competencies

Organization UsageOrganizations are experimenting withDeveloping competencies and competency models andUsing them as underpinnings of several HR applicationsThree strategic HR reasons for doing competency modelingCreate awareness and understanding of need for change in businessEnhance skill levels of workforceImprove teamwork and coordinationEmphasis -- Establishing general competencies

The Great Eight CompetenciesLeading: initiates action, gives directionSupporting: shows respect, puts people firstPresenting: communicates and networks effectivelyAnalyzing: thinks clearly, applies expertiseCreating: thinks broadly, handles situations creativelyOrganizing: plans ahead, follows rulesAdapting: responds to change, copes with setbacksPerforming: focuses on results, shows understanding of organization

Discussion QuestionsWould 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 CasebookYes, I did write the case myselfTanglewood department stores conceptRetail is a high visibility industryThe core problems are similar to most customer service companies faceYou act as an external consultant with new and unique skills to offer themAll information will be posted on the web and updated regularly

Ethical IssuesIssue 1As 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 2One 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 TimeRead the first case in the casebookAnswer questions regarding the company and its strategic staffing choices

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.This is from Delery and Doty.

The more obvious example is the simple personnel economics comparison of organizations that use high versus low value added human capital and both are able to survive in the same niche. Those using the higher value added human capital will tend to have less training, lower paid workers.This is from Delery and Doty.

The more obvious example is the simple personnel economics comparison of organizations that use high versus low value added human capital and both are able to survive in the same niche. Those using the higher value added human capital will tend to have less training, lower paid workers.This is from Delery and Doty.

The more obvious example is the simple personnel economics comparison of organizations that use high versus low value added human capital and both are able to survive in the same niche. Those using the higher value added human capital will tend to have less training, lower paid workers.