Copyright © Houghton Mifflin Company. All rights reserved. 6–16–1

6–26–2 What is Human Resource Planning? HR Planning is forecasting the supply and demand for labor in a firm or unit, and planning programs to assure that supply matches demand in the future. Who Is Planned For? –Aggregate level (total headcount, headcount in job or job family) –Individual positions (managerial succession planning) When Is Planning Done? –At least annually –Time horizons vary

Copyright © Houghton Mifflin Company. All rights reserved. 6–36–3 Figure 3.1 A Model for Human Resource Planning

Copyright © Houghton Mifflin Company. All rights reserved. 6–46–4 Figure 3.4: Planning Human Resource Programs

Copyright © Houghton Mifflin Company. All rights reserved. 6–56–5 Managerial Succession Planning Identify high potential individuals and plan to prepare them for higher level management positions. May use replacement charts to identify successors for specific jobs, or May focus on creating pools of qualified candidates to service a number of positions.

Copyright © Houghton Mifflin Company. All rights reserved. 6–66–6 Figure 3.5 Replacement Chart

Copyright © Houghton Mifflin Company. All rights reserved. 6–76–7 Job Analysis The Job Analysis Process –Phase 1: The Scope of the Job Analysis –Phase 2: The Methods of Job Analysis –Phase 3: Data Collection and Analysis –Phase 4: Assessing Traditional Job Analysis Methods

Copyright © Houghton Mifflin Company. All rights reserved. 6–86–8 The New Strategic View of Job Analysis Job Analysis Methods Should Be: –Future-oriented –Linked to key strategic issues –More generic in their approach

Copyright © Houghton Mifflin Company. All rights reserved. 6–96–9 The New Strategic View (cont’d) Competency Modelling –Task competencies –Results competencies –Outcome competencies –Knowledge, skill, and attitude competencies –Superior performer differentiators –Attribute bundles

Copyright © Houghton Mifflin Company. All rights reserved. 6–10 Job Analysis Adding Value? Dollar costs versus dollar benefits Non-dollar costs versus non-dollar benefits Dollar and non-dollar costs/benefits difficult to assess Critical issue is does job analysis help employees perform better Does is help you better understand needs?

Copyright © Houghton Mifflin Company. All rights reserved. 6–11 Recruitment & Selection Overview of the Recruitment Process Strategic Issues in Recruiting Internal Recruiting External Recruiting The Applicant’s Point of View Evaluation and Benchmarking of Recruitment

Copyright © Houghton Mifflin Company. All rights reserved. 6–12 Figure 6.1a Overview of the Recruitment Process — Organization

Copyright © Houghton Mifflin Company. All rights reserved. 6–13 Figure 6.1b Overview of the Recruitment Process — Applicant

Copyright © Houghton Mifflin Company. All rights reserved. 6–14 Recruitment Philosophy Internal or External Sources? Fill current vacancies or hire for long term potential? How important is diversity? Are applicants commodities or customers? What recruitment practices are unethical?

Copyright © Houghton Mifflin Company. All rights reserved. 6–15 Advantages and Disadvantages of Internal Sources + Ability of candidate is known + Internal promotion motivates employees + Training and socialization time is less - Internal sources may be insufficient for growth - Ripple effect, cumbersome procedures - Inbreeding, loss of flexibility

Copyright © Houghton Mifflin Company. All rights reserved. 6–16 Advantages and Disadvantages of External Sources + Import new ideas and skills + Avoid ripple effect + May be necessary in turnaround situation - Expensive - Time consuming - More difficult to evaluate candidates

Copyright © Houghton Mifflin Company. All rights reserved. 6–17 If the applicant pool is too small... Recruit in a larger geographical area Improve or change inducements Target underutilized labor pools Sponsor immigration of skilled employees Acquire a company with desired human resources Use temporaries or employee leasing Outsource the function

Copyright © Houghton Mifflin Company. All rights reserved. 6–18 Internal Recruiting –Job Posting and Bidding Employees self-nominate for open positions –Search HRIS/Skills Inventory for internal candidates –Managers nominate candidates –Succession plans are consulted

Copyright © Houghton Mifflin Company. All rights reserved. 6–19 Planning for External Recruiting Liaise with hiring manager to understand job requirements Calculate yield ratios Calculate days-to-hire Determine when to begin, how extensively, and where to recruit Prepare to track applications manually or with résumé-tracking software

Copyright © Houghton Mifflin Company. All rights reserved. 6–20 Informal External Recruitment Methods Unsolicited applications, walk-ins, gate hires Rehire former employees or co-op students Ask employees to refer potential candidates Consider referral bonuses

Copyright © Houghton Mifflin Company. All rights reserved. 6–21 Formal External Recruiting Methods Recruitment Advertising Internet Recruiting Employment Agencies –Public Job Service Agencies –Private, For-Profit Agencies Executive Search Firms

Copyright © Houghton Mifflin Company. All rights reserved. 6–22 Source: Based on a survey of 303 HR Professionals, from HR Magazine, December 1996, p. 53. Data on Internet recruiting is from HR Focus,May 2000, p. 8 Table 6.2 Effectiveness of Recruitment Methods

Copyright © Houghton Mifflin Company. All rights reserved. 6–23 Recruiting Targeted Groups Campus Recruiting Older Workers Disabled Workers Disadvantaged Workers Minorities Passive Job Seekers

Copyright © Houghton Mifflin Company. All rights reserved. 6–24 Non-Traditional Approaches

Copyright © Houghton Mifflin Company. All rights reserved. 6–25 Figure 6.6 Factors Affecting Applicants’ Job Choice

Copyright © Houghton Mifflin Company. All rights reserved. 6–26 Realistic Job Preview Reduces early turnover and dissatisfaction via: –Self-Selection out if the job doesn’t fit –Increased Commitment to an Informed Decision –Lowered Expectations, less gap with reality –Improved Coping with job difficulties

Copyright © Houghton Mifflin Company. All rights reserved. 6–27 Evaluation and Benchmarking of Recruitment Measures of Recruitment Success –Satisfaction of Internal Clients –Cost per Hire –Time to Fill –Quality of Hires Differential Quality of Recruiting Sources

Copyright © Houghton Mifflin Company. All rights reserved. 6–28 Review Overview of the Recruitment Process Strategic Issues in Recruiting Internal Recruiting External Recruiting The Applicant’s Point of View Evaluation and Benchmarking of Recruitment

Copyright © Houghton Mifflin Company. All rights reserved. 6–29 Case Recruiting at Health Source Health Source owns four drugstores in Houston and will open two more in the next year--one in suburban Houston, one in Dallas. Each start requires 25 employees: –5 pharmacists –4 cosmeticians –1 manager –1 assist. Manager –Numerous clerks How would you go about locating and recruiting the 50 employees needed for the new stores? What are your options? How do the recruiting methods you considered compare with one another in terms of cost, and how effective do you think it will be? How long will it take? What if: –Health Source plans no further expansion after these two new stores; or –Health Source plans to pursue an aggressive expansion policy for several years?

Copyright © Houghton Mifflin Company. All rights reserved. 6–30 Assessing Job Candidates: Tools for Selection The Selection Process Application Blanks and Biodata Tests Interviews Physical Testing Reference and Background Checks Selecting Managers Criteria for Choosing Selection Devices

Copyright © Houghton Mifflin Company. All rights reserved. 6–31 Benefits of Careful and Strategic Selection Tradeoff with training/socialization –Hire more carefully, less training may be needed –Hire less carefully, train more afterwards Improved performance Effective strategy implementation –Hire the kind of people needed to implement strategy Sustainable competitive advantage –Match strategy to the unique human resources you have

Copyright © Houghton Mifflin Company. All rights reserved. 6–32 Figure 8.1 The Process of Selection

Copyright © Houghton Mifflin Company. All rights reserved. 6–33 Application Questions Problematic Questions: –Age, gender, religion, all handicaps, all arrests/convictions, photo, birthplace –Any questions that indirectly get at the above. Acceptable Questions: –Job-relevant characteristics, qualities, and abilities –Bona fide Occupational Qualifications

Copyright © Houghton Mifflin Company. All rights reserved. 6–34 Figure 8.2 Constructing a Weighted Application Blank (WAB)

Copyright © Houghton Mifflin Company. All rights reserved. 6–35 Developing a Weighted Application Blank

Copyright © Houghton Mifflin Company. All rights reserved. 6–36 Biodata Biodata is any personal history information, from WAB, biodata questionnaire, or experience/accomplishment record May be valid because: –verifiable, non-fiction –only relevant items are weighted –point-to-point correspondence with job demands –may reflect job-relevant personality traits/values –assesses both cognitive and non-cognitive attributes

Copyright © Houghton Mifflin Company. All rights reserved. 6–37 Tests A test is a standardized sample of behavior, allowing candidates to be compared easily. Cognitive ability tests are often highly valid predictors of job performance. Tests are legal if they produce no adverse impact OR validly predict job performance.

Copyright © Houghton Mifflin Company. All rights reserved. 6–38 Work Sample and Trainability Tests Work sample tests are used to select individuals who already must know how to perform critical job tasks. Trainability tests are used when candidates are not expected to know the job, to assess their aptitude for learning it. Both have face validity, content validity, and usually predictive validity.

Copyright © Houghton Mifflin Company. All rights reserved. 6–39 Personality Tests Can predict non-cognitive aspects of job success with low to moderate validity May have incremental validity over cognitive tests

Copyright © Houghton Mifflin Company. All rights reserved. 6–40 “Big Five” Personality Dimensions 1. Extraversion --- introversion 2. Friendliness, agreeableness --- hostility, non-compliance 3. Neuroticism --- emotional stability 4. High conscientiousness --- low conscientiousness 5. High openness to experience --- low openness to experience

Copyright © Houghton Mifflin Company. All rights reserved. 6–41 The Interview Interrater reliability of interviews may be low Validity of interviews depends on structure –Unstructured interviews are least valid –Semi-structured interviews have some pre-planning and some tailoring to the candidate –Structured interviews (same questions asked of each candidate) based on a job analysis are most valid

Copyright © Houghton Mifflin Company. All rights reserved. 6–42 Interviewer Errors and Biases –Similarity Error –Contrast Error –Overweighting of Negative Information –Race, Sex, and Appearance Bias –First Impression Error –Halo Error –Nonverbal Factors –Faulty Listening and Memory

Copyright © Houghton Mifflin Company. All rights reserved. 6–43 Figure 8.7 Cone Method of Semistructured Interviewing

Copyright © Houghton Mifflin Company. All rights reserved. 6–44 Effective Structured Interview Formats Situational Interview –What would you do if two of your subordinates were having a conflict? Behavior Description Interview –Tell me about a time two of your subordinates were having a conflict. What did you do? How well did it work? What else did you try?

Copyright © Houghton Mifflin Company. All rights reserved. 6–45 Improving the Interview Base questions on a thorough job analysis Use a more structured format Use situational and/or behavior description questions Have interview conducted by a trained panel of interviewers Assess only qualities that are visible in interviews

Copyright © Houghton Mifflin Company. All rights reserved. 6–46 Physical Testing The Physical Examination –May not be required until after a conditional job offer is made –Often not as reliable or valid as strength and fitness testing based on verified job demands. –May be used for placement or to allow accommodation if unable to perform a “marginal” job function.

Copyright © Houghton Mifflin Company. All rights reserved. 6–47 Drug Testing Drug use is NOT a handicap under ADA Drug tests can be done prior to a conditional offer, also randomly during employment Tests are reliable but expensive and invasive Advisable in safety-sensitive jobs Perceived fairness is essential

Copyright © Houghton Mifflin Company. All rights reserved. 6–48 Obtaining Reference/Background Information Written references or phone interviews may be used Ask nominated referees for additional people to contact Ask job-related questions of referees Disclose to applicant that you are seeking reference information or doing a background check

Copyright © Houghton Mifflin Company. All rights reserved. 6–49 Validity and Legality of Reference Information Validity may be low Check references to avoid “negligent hiring” and because résumé fraud is common Beware defamation suits when giving reference information

Copyright © Houghton Mifflin Company. All rights reserved. 6–50 Selecting Managers Assessment Centers –Multiple assessees –Multiple assessors –Multiple exercises: In-basket test, leaderless group discussion, interview, tests Valid but expensive

Copyright © Houghton Mifflin Company. All rights reserved. 6–51 Criteria for Choosing Selection Devices Validity Utility –Cost, Base Rate of Success, Selection Ratio, Incremental Validity, etc. Legality/Likelihood of legal challenge Acceptability to Managers Applicant Reactions Societal Impact

Copyright © Houghton Mifflin Company. All rights reserved. 6–52 Table 8.9 Average Validity and Incremental Validity of Selection Devices Source: Data from F.L. Schmidt and J.E. Hunter, “The Validity and Utility of Selection Methods in Personnel Psychology: Practical and Theoretical Implications of 85 Years of Research Findings,” Psychological Bulletin, Vol.124, 1998, pp Note that the correlations in the second column are correct upwards to account for restriction in range and unreliability in the measurement of performance.

Copyright © Houghton Mifflin Company. All rights reserved. 6–53 Review T Selection Process Application Blanks and Biodata Tests Interviews Physical Testing Reference and Background Checks Selecting Managers Criteria for Choosing Selection Devices