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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

Learn how to learn about staffing

Strategy leads to staffing choices


Staffing leads to strategic choices
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.

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.

TRUE

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.

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 (32% of HR managers get this right)

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

Validity
rank

Use rank

Just how bad is staffing in some


companies?
Selection method

Validity
rank

Work sample

1 (0.54)

Cognitive ability test

2 (0.53)

Biodata inventory

3 (0.37)

Integrity test

4 (0.34)

Conscientiousness test

5 (0.31)

Unstructured interview

6 (0.23)

Reference check

7 (0.16)

Application blank

8 (0.10)

Use rank

Just how bad is staffing in some


companies?
Selection method

Validity
rank

Use rank

Work sample

1 (0.54)

4 (15-20%)

Cognitive ability test

2 (0.53)

6 (15-20%)

Biodata inventory

3 (0.37)

8 (10-15%)

Integrity test

4 (0.34)

7 (10-15%)

Conscientiousness test

5 (0.31)

5 (15-20%)

Unstructured interview

6 (0.23)

2 (90+%)

Reference check

7 (0.16)

3 (80+%)

Application blank

8 (0.10)

1 (90+%)

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

Organization

(person)

(job)

Recruitment
(identification and attraction)

Selection
(assessment and evaluation)

Employment
(decision making and match)

Staffing for your job:


How did it happen?

Recruitment

Selection

Why did you apply for


this job?
What did you do to make
yourself attractive?
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

Selection

How did they identify you


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

Staffing is Contingent
Examples 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 Contingent
Examples 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 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

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
Rsums of internal and external individuals were
reviewed jointly, together with statements of intent
Large committee interviews and several ongoing one-onone interviews were conducted in the final stage

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

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

Support activities

Serve as foundation for conduct of core staffing activities

Core staffing activities

Guide development of recruitment, selection, and employment


programs

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

External labor market

Head manager

Labor market of
experienced
managers

Head manager

Assistant
manager

Labor market of
experienced
assistant
managers

Assistant
manager

Management
trainee

Labor market of
new college
graduates

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/contra
ct basis

Growth of the Temporary


Employee Labor Market

The Logic of Prediction


Predictor
Construct

Criterion
Construct

Predictor
Measure X

Criterion
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

Finding good measures

What constructs should I examine?


Why do I think theyd be related?
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

Culture and values


Reward systems
Authority/decision
making

Group

Job

Work preferences
Personality
Demography

Task requirements
Rewards for this job
Authority for this job

Concepts:
Person/Organization
Match Model

Organizational culture and values

New job duties

Tasks that may be added to target job over time


And other duties as assigned . . .

Multiple jobs

Norms of desirable attitudes and behaviors for


employees

Flexibility concerns - Hiring people


who could perform multiple jobs

Future jobs

Long-term matches during employment relationship

Major Cultural Dimensions of


Organizations
Dimension Cultural values
Change vs. Innovation, experimentation, risk taking
consistenc Stability, rule orientation, secure
y
Performan
ce vs.
process

Outcome orientation, action oriented,


aggressive
Process orientation, bureaucratic,
predictable

Support
for people,
collaborative,
team
Think about yourRespect
own preferences
for a minute
and how this might
relate
vs. to your experiences
orientedin the world of work.
independe Respect for ideas, independent,
nce
individual-oriented

Person-Organization Fit:
Why Does it Matter?

Employment relationship perspective

Social identity 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
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

Match

Person
KSAOs
Motivation

HR Outcomes

Impact

Attraction
Attraction
Performance
Performance
Retention
Retention
Attendance
Attendance
Satisfaction
Satisfaction
Other
Other

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

HR Outcomes

Future
Jobs

Match
Person
KSAOs
Motivation

Impact

Attraction
Attraction
Performance
Performance
Retention
Retention
Attendance
Attendance
Satisfaction
Satisfaction
Other
Other

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

Three strategic HR reasons for doing


competency modeling

Developing competencies and competency models


and
Using them as underpinnings of several HR
applications

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