MGTO 324 Recruitment and Selections Kin Fai Ellick Wong Ph.D. Department of Management of Organizations Hong Kong University of Science & Technology

Prologue Do you remember the key concepts of Recruitment? What is recruitment? How is it different from selection? What do we want to get from recruitment? Broad vs. Specific meaning of recruitment…

Prologue Need more memory refreshment? Name some recruitment sources External sources Internal sources Evaluation of different sources Evaluation on cost Evaluation on time Evaluation on performance

Prologue See also Chapter 13 (Exhibit 13.6, p. 640)

Prologue Good, after warming up, let’s move to the next STAGE

Overview

Part I: External Recruitment External recruitment is a multiple-stage process Stage 1: Planning Stage 2: Strategy formation Stage 3: Communicating to applicants Stage 4: Evaluation

Part I: External Recruitment So, what do we need to plan? Stage 1: Planning Stage 2: Strategy formation Stage 3: Communicating to applicants Stage 4: Evaluation

Part I: External Recruitment Stage 1: recruitment planning Organizational issues In-house vs. external recruitment agency Individual vs. cooperative recruitment alliances Centralized vs. decentralized recruitment Administrative issues Requisition Number of contacts Types of contacts Budget Recruiters

Part I: External Recruitment Stage 2: Strategy formation Stage 1: Planning Stage 2: Strategy formation Stage 3: Communicating to applicants Stage 4: Evaluation

Part I: External Recruitment Stage 2: Strategy formation Open vs. targeted recruitment Recruitment sources “Buy” skills  referrals, network, advertisements, employment agencies “Develop” skills  college recruitment, mass recruitment Person-job fit  no specific sources Person-organization  referrals, ex-workers Not all sources are equally useful, there are trade-offs…

Part I: External Recruitment

Part I: External Recruitment Stage 3: Communication Stage 1: Planning Stage 2: Strategy formation Stage 3: Communicating to applicants Stage 4: Evaluation

Part I: External Recruitment Stage 3: Communication To let the applicant be aware of the opening To attract good candidates Traditional messages Hiding the negative attributes, exaggerating the positive attributes (隱惡揚善) Realistic preview message Realistic job preview, realistic cultural preview, etc. Telling the truth by presenting both +ve and –ve attributes

Part I: External Recruitment Stage 3: Communication Research update 1: What determines the attractiveness of the job attributes? People exhibit “preference reversal” when the job attribute information is presented in different ways E.g., Bazerman, Loewenstein, & White (1992, Administrative Science Quarterly, see also Hsee et al., 1999, Psychological Bulletin) showed some interesting findings

Mode type preference reversals Job A: $600 for you; $800 for neighbor Job B: $500 for you; $500 for neighbor

Mode type preference reversals Job A: $600 for you; $800 for neighbor Job B: $500 for you; $500 for neighbor Joint Evaluation Mode: Two options are presented simultaneously Job A is favored more than Job B

Mode type preference reversals Job A: $600 for you; $800 for neighbor Job B: $500 for you; $500 for neighbor Joint Evaluation Mode: Two options are presented simultaneously Job A is favored more than Job B Separate Evaluation Mode Job A and Job B are independently evaluated by two groups of people Job B is favored more than Job A

Part I: External Recruitment Stage 3: Communication Research update 2: How to make the attributes more attractive? Conventional wisdom: Positive correlation between firm attractiveness and how familiar the firm is to the public This wisdom is not totally (in)correct Brook, Highhouse, Russell, & Mohr (2003, Journal of Applied Psychology) showed some interesting findings The presentation of attribute information should be carefully selected, depending on the organization’s familiarity to applicants.

Part I: External Recruitment

Part I: External Recruitment

Part I: External Recruitment Stage 3: Communication To let the applicant be aware of the opening To attract good candidates Traditional messages Hiding the negative attributes, exaggerating the positive attributes (隱惡揚善) Realistic preview message Realistic job preview, realistic cultural preview, etc. Telling the truth by presenting both +ve and –ve attributes

Part I: External Recruitment Stage 4: Evaluation Stage 1: Planning Stage 2: Strategy formation Stage 3: Communicating to applicants Stage 4: Evaluation

Overview

Part II: Internal Recruitment It consists of a four-stage process that is similar to the external recruitment Planning Slightly different from External Recruitment Strategy formation Similar to that in External Recruitment, with the recruitment sources being different Communicating to applicants Very easy to understand… Evaluation An issue that does not matter too much in External Recruitment

Part II: Internal Recruitment It consists of a four-stage process that is similar to the external recruitment Planning Slightly different from External Recruitment Strategy formation Similar to that in External Recruitment, with the recruitment sources being different Communicating to applicants Very easy to understand… Evaluation An issue that does not matter too much in External Recruitment

Part II: Internal Recruitment Recruitment Planning The major issue is Mobility Paths Note, “mobility” is not equal to “promotion” The path is not necessarily describing a promotion path Traditional mobility paths vs. Innovative mobility paths

Exhibit 6.1 Traditional Mobility Paths Nonexempt Employees Exempt Employees Technical Specialists Staff Employees Leadperson Vice president Senior consulting engineer Vice president Journeyperson Manager Consulting engineer Corporate manager Division manager Apprentice Supervisor Senior engineer Specialist Generalist Helper Representative Engineer Trainee

Exhibit 6.2 Innovative Mobility Paths Parallel Tracks Lattice Tracks Vice president engineering Senior consulting engineer Training manager Division personnel manager Manager engineering Consulting engineer Recruitment supervisor Compensation supervisor Supervising engineer Senior engineer Recruiter Compensation specialist Engineer Lateral Track Production manager Project manager International sales Sales manager

Part II: Internal Recruitment It consists of a four-stage process that is similar to the external recruitment Planning Slightly different from External Recruitment Strategy formation Similar to that in External Recruitment, with the recruitment sources being different Communicating to applicants Very easy to understand… Evaluation An issue that does not matter too much in External Recruitment

Part II: Internal Recruitment Evaluation Why it is a big issue? The problem of justice… We have learned the consequences of injustice in MGTO 121 Low job commitment High turnover Low job satisfaction Low OCB See exhibit 6.8 for details about the survey collecting employees reaction or responses to internal recruitment

Part II: Internal Recruitment Evaluation So what determines the justice perception in internal recruitment Distributive Justice Which we cannot change or manipulate Procedure Justice Reduces the negative effects of non-favorable outcome (i.e., when distributive justice is low E.g., see Brockner & Wiesenfeld (1996, Psychological Bulletin) for a review

Part II: Internal Recruitment Evaluation