OS 352 3/4/08 I. Exam I feedback / Strategy Review II. Selection Interviews III. Validity IV. Downsizing & Outsourcing

Three HRM Strategy Theories Contingency perspective Best practices Resource-based

Contingency Perspective Organizations will be most successful when strategies “fit” environments. Organizations will be most successful when HR strategies “fit” organizational strategies. Firms should tailor HR activities.

Diagram of the Contingency Perspective Organizational Strategies Organizational Strategies Organizational Characteristics Organizational Characteristics Organizational Capabilities Organizational Capabilities Environment HR Strategies Consistency Improved Firm Performance Improved Firm Performance Fit Fit Fit Fit

How to Interpret the Diagram Contingency Perspective says that firms that match their HR activities / strategies to the 4 boxes (organizational strategies, environment, organizational characteristics, organizational capabilities) will be more successful than those that do not.

Best Practices Approach Some practices work better than others (e.g., variable pay bonuses for managers). Some practices are more progressive than others (e.g., paid family leave). Firms should imitate HRM leaders.

Workforce Diversity Management Includes policies and procedures that support the view that all employees’ views and cultures are to be valued and respected. Cross-cultural training; sensitivity training Team training Work/life programs (e.g., elder care) Top management commitment to diversity Equal employment opportunity efforts Diversity scorecards External diversity advisory panel

Workforce Diversity Management: What is Most Effective? A study by Kalev, Dobbin, & Kelly (2006) of 708 establishments over 30 years found that … Diversity training aimed at reducing subtle biases was the least effective approach to increasing the diversity of a firm’s managers Mentoring and networking programs were somewhat effective in diversifying a firm’s managerial ranks Establishing responsibility for diversity outcomes was the most effective approach to increasing the diversity of a firm’s managers Affirmative action Diversity committees Diversity staff

Interview Types Nondirective Interviewer has great discretion in choosing questions; conversation may be open-ended. Structured Consists of a predetermined set of questions to be asked in a predetermined order. Questions are based upon a thorough job analysis.

Structured Interviews: Behavioral Situational question: interviewer describes a situation likely to arise on the job, then asks the candidate what s/he would do in that situation. Behavior description question: interviewer asks the candidate to describe how he or she handled a type of situation in the past.

Your Turn (please do in JD groups) For the job analyzed in the job description exercise: Write 3 interview questions that you would ask in interviews of applicants for this position. Make sure at least two questions pertain to applicant behaviors. How would you validate the behavioral questions using the 3 types of validity just discussed?

Demonstrating the Job-Relatedness (Validity) of Selection Methods Employer must document that the selection method(s) are related to performance in specific jobs and/or work roles. Job analysis or substitute. Validation. KSAs that can be easily learned during a brief training program should not be used as screening criteria. KSAs required in future jobs or roles can be used provided that a majority of individuals reach these jobs. already discussed today

Reliability The extent to which a measurement is free from random error. Example: A vision test that provides a person with the same results 3 days in a row is reliable. A vision test that provides vastly different results is unreliable. Note: must have reliability to have validity.

Validity The extent to which performance on a measure (such as a test score) is related to what the measure is designed to assess (such as job performance). Example: The extent to which student performance on OS 352 Exam I is related to students’ degree of learning in the course.

Validation: Evidence that selection method(s) are job-related 3 Types: 1) Criterion-related validity A measure of validity based on showing a substantial correlation between test scores and job performance scores. 2) Construct validity - The selection method measures the KSAOs required by the job and excludes KSAOs not required by the job. 3) Content validity - Consistency between the test items and the kinds of situations or problems (i.e., tasks and duties) that occur on the job.

Criterion-Related Validity

Face Validity Extent to which a selection test or device makes sense or seems fair to the applicants. Example: questions about one’s political opinions may appear invalid to applicants for a chef job.

Turnover When the ee leaves the firm, either voluntarily (ee initiates and er would prefer to retain) or involuntarily (er initiates). Downsizing represents involuntary turnover in the form of a firm eliminating large numbers of jobs with the goal of enhancing the firm’s performance.

Downsizing Considerations Amount of suffering for “survivors” and employees who are downsized. Speed – downsizing is a quick method. Impact on “survivor” productivity and firm reputation. Downsizing costs: severance packages, HR and supervisor time, lost productivity, unemployment insurance hikes.

Workers’ Adjustment Retraining and Notification Act (WARN) Requires 60 days’ notice to employees in firms with more than 100 employees whose closing or mass layoffs will affect at least 50 full-time employees. Plant closing Mass layoff of 30-days or more if 550+ ees of ees if 1/3 or more of workforce laid off Sale of business combined w/ closing or layoff – there is always an er responsible for notice.

Organizational Justice and Downsizing Outcome fairness – ees perceive that the outcome of who gets downsized and who does not is fair. Procedural justice – ees perceive that fair methods were used to determine who was downsized and who was not. Interactional justice – ees perceive that the firm considered ees’ feelings when they implemented the downsizing

Examples of Insensitivity (low interactional justice) in Downsizing Inacom laid off 5,000 ees by having them call an 800 number recording that told them they were laid off immediately. Chrysler workers learned that they were laid off when their ID badges no longer operated the entrance gates. Amazon.com announced job cuts by sending s to ees’ homes.

Outsourcing Contracting with another organization to perform a broad set of services. Example: Clarkson outsources its food services and OIT operations to other firms. The ees of these firms work on the Clarkson campus.

Off-Shoring A firm locates its jobs in a country different from its headquarters or primary location, usually to save on labor costs. Example: In 2004, EDS, headquartered in Texas, offshored approximately 15,000 jobs, primarily programmers, to countries with cheaper labor costs than the U.S. Off-shoring may or may not be combined with outsourcing.

Terms You Should Know Structured interview Generalizability Turnover Downsizing Outsourcing Off-shoring Interactional justice WARN

You Should be Able To … Generally assess the fairness, reliability, and validity of various selection processes for particular jobs. Understand how to make a downsizing process fair and effective.