McGraw-Hill/Irwin Principles of Management

Chapter

12

Staffing and Developing Diverse Workforce

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Learning Objectives

1.

2.

3.

4.

5.

6.

7.

8.

Outline the human resource staffing process.

Explain how human resource planning is connected to corporate strategic planning.

Describe the steps followed in human resource planning.

Discuss the importance of diversity in organizational settings.

Explain the value of the employer brand in recruitment.

Identify ways to improve the validity of employment interviews.

Describe several selection methods for hiring employees.

Outline training methods and what managers should do to maximize their effectiveness.

12 - 3

Human Resource Staffing Process

Organizational strategy and planning Plan human resource needs Recent job applicants Select job applicants Develop employees

12 - 4

Maintain a diverse workforce

12 - 5 Human Resource Planning Process STEP 1

Conduct job analysis

Step 2

Estimate Future HR demand

Step 3

Document current HR supply

Step 4

Estimate future Internal HR supply

Step 5

Estimate future External HR supply

Step 1: Conduct Job Analysis

• The systematic investigation and documentation of duties, tools, equipment, conditions, and competencies • Results in a job description • Includes list of required competencies for the job (job specifications) • Allows managers to categorize work so HR planning can identify needs more specifically

12 - 6

Step 2: Estimate Human Resource Demand

• Predict how many people with what competencies are required at some point in the future • It relies on organizational strategy, operational plans, and estimates of future demand for the organization’s products or services

12 - 7

Step 3: Document Current HR Supply

• Estimate how much staff will still be employed by the future dates • Examine the stock of employees and their credentials and competencies

12 - 8

12 - 9 Step 4: Estimate Future Internal HR Supply

• It can occur on a macro level, micro level, or combination of both levels -

Macro level:

Managers use estimates of past flows of people through and out of the organization -

Micro level

: Managers predict and plan for replacement of specific individuals based on their knowledge of those people

Question

If an organization wants to be effective, it should rely on the internal HR supply because it maintains the cultural values. Do you agree? Explain.

12 - 10

Step 5: Estimate Future External HR Supply

• Employees quit, retire, and move into different jobs, so invariably managers depend on the external labor market for new recruits • Due to every companies dependence on external labor market, managers must anticipate and adjust their strategies accordingly

12 - 11

Top Ten Employers for New College Grads

1.

Disney 2.

Lockheed Martin 3.

Deloitte & Touche 4.

Goldman Sachs 5.

Enterprise Rent-A-Car 6.

State Department 7.

Raytheon 8.

General Electric 9.

JP Morgan 10.

Abbott Labs

12 - 12

Source: Business Week, September 18, 2006

Workforce Diversity

• Diversity in the workforce is differences in the demographic, cultural, and personal characteristics of employees -

Surface-level diversity –

observable demographic or physiological differences in people -

Deep-level diversity –

differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes

12 - 13

Importance of Diversity

12 - 14

• Diversity makes good business sense • Companies with the highest representation of women in their top management teams experiences significantly better financial performance • Teams with some diversity make better decisions about complex problems • Diverse workforce is more likely to understand and respond to the needs of equally diverse customers

U.S. Equal Opportunity Laws

12 - 15

• Equal Pay Act of 1963 • Civil Rights Act of 1964 • Age Discrimination in Employment Act of 1967 • Americans with Disabilities Act of 1990 • Rehabilitation Act of 1973 • Civil Rights Act of 1991 • Family/Medical Leave Act of 1993

Question

Which of these laws prohibits employment discrimination based on race, color, religion, sex, or national origin?

a.

Rehabilitation Act of 1973 b.

Civil Rights Act of 1963 c.

Americans with Disabilities Act of 1990 d.

Family/Medical Leave Act of 1993 Does Korea have something like this?

12 - 16

Myths of Recruiting

•

Myth #1:

Companies should attract as many job applicants as possible

Myth #2:

Companies should focus recruitment on people with the highest credentials

Myth #3:

Companies should appear as attractive as possible during recruitment

12 - 17

Activities that Support an Employer Brand

• Identify and develop positive differentiating features • Raise the company’s public profile • Use consistent messages in recruiting and marketing • Earn third-party recognition

12 - 18

Attracting the Best

• Don’t fudge the sales pitch • Let them have a life • No time clocks, please • Give them responsibility • Feedback, and more feedback • Giving back matters Source: Business Week, September 18, 2006

12 - 19

Recruiting Channels

•

Internal

Job postings Weekly company newspaper Company intranet •

External

Employee referrals Advertising Campus visits Agencies • •

Online recruiting (e-recruiting) Guerilla recruiting 12 - 20

Selection

• The process of deciding which job applicants will make the most suitable employees • Runs along side the recruiting process • In order to know which selections methods to use, management needs to consider the following: What constitutes a “suitable” candidate?

How well the selection method measures or predicts that suitability?

12 - 21

Popularity and Validity of Selection Methods Selection Method

Application forms, resumes, reference checks Work sample tests Unstructured employment interviews Patterned behavior description interview Ability tests Personality tests

Popularity

High Moderate Very high Moderate Moderate Moderately low

Validity

Moderate

12 - 22

Moderately high Low to moderate Moderately high Moderate Low to moderate

Employers’ Hiring Mistakes

12 - 23

• Do not pre-screen candidates • Fail to prepare the candidates • Fail to prepare the interviewers • Rely on the interview to evaluate the candidate • Do nothing but talk during an interview • Evaluate personality, not job skills and experience • Fail to differentiate the critical job skills • Develop a small candidate pool Source: humanresources.about.com

Application Forms, Resumes, and Reference Checks 12 - 24

• Usually the first information received • 25% to 50% of application forms contain false information • Reference checks are used to minimize false information on application forms

Employee Orientation

• The organizations systematic process of helping new employees make sense of and adapt to the work context • Process of communicating work-related information beginning with recruiting continuing through the beginning of employment • Realistic job preview (RJP) – giving job applicants a balance of positive and negative information about the job and work context

12 - 25

Training Methods

Training Method

Lectures, reading, discussions Job rotation Audiovisual materials Simulations and role playing Computer-based training Action learning Coaching/mentoring

12 - 26

12 - 27

Supporting the Training Process

•

Is the trainee ready to learn?

Managers need to determine if trainees have the prerequisite knowledge •

Is the training practice well designed?

Important principle of learning – active practice is usually more effective than passive learning •

Is the trainee’s transfer of learning supported?

Relapse prevention – teaching employees to anticipate and overcome obstacles in the workplace that might make it difficult to practice their new skills

Trained Employees?

50 45 40 35 30 25 20 15 10 5 0 Strongly Agree Undecided Strongly Disagree My employees have the training they need to best do their jobs

Source: Business Week, July 31, 2006

12 - 28

HR: How to Do Right

• Say the right thing • Measure the right thing • Get rid of the “social workers” • Serve the business • Make value, not activity

12 - 29

Source: Fast Company, August 2005