1. © 2001 by Prentice Hall 5-1 5 Recruiting, Selecting, and Socializing Employees

2. © 2001 by Prentice Hall 5-2 Challenges  Understand the supply and demand of human resources.  Weigh the advantages and disadvantages of internal and external recruiting.  Distinguish among the major selection methods and use the most legally defensible of them.  Make staffing decisions that minimize the hiring and promotion of the wrong people.  Provide reasonable job expectations to new recruits.  Understand the legal constraints on the hiring process.

3. © 2001 by Prentice Hall 5-3 Human Resource Planning Product Demand Labor Productivity Internal Labor Market External Labor Market Labor DemandLabor Supply Conditions and Select Responses 1. Labor Demand Exceeds Labor Supply Training or retraining Promotion from within Recruitment from outside Use of part-timers or temporary workers 2. Labor Supply Exceeds Labor Demand Pay cuts Reduced hours Voluntary early retirements Inducements to quit (for example, severance pay) Succession planning Subcontracting Use of overtime Layoffs Work Sharing 3. Labor Demand Equals Labor Supply Replacement of quits from inside or outside Internal transfers and redeployment © 2001 by Prentice Hall

4. 5-4 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated as Column A ÷25) C Projected 2003 Labor Demand for 32 Hotels (Calculated as Column B x 32) Key Positions General Manager Resident Manager Food/Beverage Dir. Controller Asst. Controller Chief Engineer Director of Sales Sales Manager Convention Mgr. Catering Director Banquet Manager Personnel Director Restaurant Mgr. Executive Chef Sous Chef Exec. Housekeeper Total 25 9 23 25 14 24 25 45 14 19 15 49 24 25 379 1.00.36.92 1.00.56.96 1.00 1.80.56.76.60 1.96.96 1.00 32 12 29 32 18 31 32 58 18 24 19 63 31 32 486

5. © 2001 by Prentice Hall 5-5 Examples of Predicting Labor Supply and Required New Hires for a Hotel Chain A % Quit B # of Present Emp. C Proj. Turnover by 2003 Key Positions General Manager Resident Manager Food/Beverage Dir. Controller Asst. Controller Chief Engineer Director of Sales Sales Manager Convention Mgr. Catering Director Banquet Manager Personnel Director Restaurant Mgr. Executive Chef Sous Chef Exec. Housekeeper Total 38 77 47 85 66 81 34 68 90 74 60 43 89 70 92 63 25 9 23 25 14 24 25 45 14 19 15 49 24 25 379 10 7 11 21 9 16 9 30 13 14 12 6 44 17 22 16 257 D Emp. Left by 2003 15 2 12 4 5 8 16 15 1 5 7 9 5 7 2 9 122 32 12 29 32 18 31 32 58 18 24 19 63 31 32 486 17 10 17 28 13 23 16 43 17 19 17 10 58 24 29 23 364 E Proj. Labor Demand in 2003 F Proj. New Hires in 2003 Supply AnalysisSupply-Demand Comp.

6. © 2001 by Prentice Hall 5-6 Quantitative Methods of Forecasting HR Demand Moving average Exponential smoothing Trends projections Averages data about HR demand from recent periods and projects them into the future Forecasters can vary weights for HR demand assigned to different past time periods used to project future HR demand. Numbers of people hired or requested placed on one axis; time is placed on the other axis. A straight line is plotted from past to future to predict HR demand. Simplicity. Data easily available. May be used to take into account factors ignored by the moving average method (for example, cyclical patterns). Easily explained to managers. Easily prepared by HR planners. Simplicity. Data easily available. May be used to take into account factors ignored by the moving average method (for example, cyclical patterns). Easily explained to managers. Easily prepared by HR planners. Method DescriptionAdvantagesDisadvantages

7. © 2001 by Prentice Hall 5-7 Quantitative Methods of Forecasting HR Demand (cont.) Regression Linear programming Actuarial models Mathematical formula used to relate staffing to several variables (for example, output, product mix, per capita productivity). Assesses required staffing level that matches desired output levels, subject to certain constraints (for example, budget, cost). Relate turnover to such factors as age and seniority. Can include many variables. Efficient use of all available data. Assesses what should be in the future, not what probably will be. Reflect past. Mathematical complexity. Requires large sample sizes. Relies on past data. Managers are skeptical of highly sophisticated methodology. Numerous assumptions must be made. May not be accurate in individual cases. Method DescriptionAdvantagesDisadvantages

8. © 2001 by Prentice Hall 5-8 Quantitative Methods of Forecasting HR Demand (cont.) Uses scenarios to test the effect of various personnel policies. Define “states” in the organization—such as strategy levels, performance ratings. Identify time period. Multiply number of people in each job category by the probability of movement between job/position categories. Model assumes that current job/position category is the chief determinant of movement. Useful for considering alternative HR programs. Help identify career patterns. Help perform turnover analysis. Adequate for considering alternative effects of various HR strategies. Accuracy varies. Require some mathematical sophistication. Accuracy varies. Not adequate for long- term forecasts. Requires mathematical sophistication. Method DescriptionAdvantagesDisadvantages Simulations Probability matrixes First-order Markov model

9. © 2001 by Prentice Hall 5-9 Quantitative Methods of Forecasting HR Demand (cont.) Same as first-order Markov model except that probability of movement is determined by (1) job/position category and (2) the individual’s length of stay in the job class. More inclusive than a first-order Markov mode. Not very useful for considering alternative effects of various HR strategies. Requires mathematical sophistication. Method DescriptionAdvantagesDisadvantages Semi-Markov model

10. © 2001 by Prentice Hall 5-10 Qualitative Methods of Forecasting HR Demand or Supply A group of experts exchanges several rounds of estimates of HR demand or supply, normally without meeting face to face. Feedback from other experts is used by each individual to “fine-tune” his or her independent estimate. A small group of experts meets face to face. After a procedure that involves open discussion and private assessments, the group reaches a judgment concerning future HR demand or supply. Can involve key decision makers in process. Can focus on what is expected or desired in future. Not bound to the past. Same as for Delphi technique. Group discussions can facilitate exchange of ideas and greater acceptance of results by participants. Highly subjective. Judgments may not efficiently use objective data. Same as for Delphi technique. Group pressure may lead to less accurate assessments that could be obtained through other means. Method DescriptionAdvantagesDisadvantages Delphi technique Nominal group technique

11. © 2001 by Prentice Hall 5-11 The Hiring Process Recruitment Selection Socialization

12. © 2001 by Prentice Hall 5-12 Recruitment Recruitment is the process of generating a pool of qualified candidates for a particular job. The firm must announce the job’s availability to the market and attract qualified candidates to apply. The firm may seek applicants from inside the organization, outside the organization, or both.

13. © 2001 by Prentice Hall 5-13 Sources of Recruiting  Current employees u Transfers u Referrals  Former employees  Print advertising  Schools  Professional associations  Internet u Ads u Web sites  Employment Agencies  Temporary agencies  Other stakeholders

14. © 2001 by Prentice Hall 5-14 Recruiting in a Tight Labor Market  What is the scope of the shortage? u Company, local, region, nation, world? u How severe is the shortage? u How long is it expected to last?  Non-traditional labor pools  Innovative techniques/incentives  Develop the labor pool

15. © 2001 by Prentice Hall 5-15 Other Recruitment Considerations  External versus internal candidates  Recruiting protected classes  Planning the recruiting effort u Best source (yield/cost=value) u Number of applicants desired u Timing

16. © 2001 by Prentice Hall 5-16 Selection Selection is the process of making a “hire” or “no hire” decision regarding each applicant for a job. The process typically involves determining the characteristics required for effective job performance and then measuring applicants on those characteristics. The characteristics required for effective job performance are typically based on a job analysis.

17. © 2001 by Prentice Hall 5-17 Selection Measures  Reliability-consistency of measurement across time and judges  Validity-results predict level of actual job performance

18. © 2001 by Prentice Hall 5-18 Selection Tools  Letters of recommendation  Application forms  Ability tests u Cognitive u Physical u Work sample  Personality tests  Psychological tests

19. © 2001 by Prentice Hall 5-19 Selection Tools (continued)  Interviews—more later  Assessment centers  Drug tests  Honesty tests  Reference checks

20. © 2001 by Prentice Hall 5-20

21. © 2001 by Prentice Hall 5-21 Structured Interview The structured interview is based directly on a thorough job analysis. It applies a series of job-related questions with predetermined answers consistently across all interviews for a particular job.

22. © 2001 by Prentice Hall 5-22 Examples of Structured Interview Questions TypeExample Situational Job Knowledge Worker Requirements You’re packing things into your car and getting ready for your family vacation when it hits you that you promised to meet a client this morning. You didn’t pencil the meeting into your calendar and it slipped your mind until just now. What do you do? What is the correct procedure for determining the appropriate oven temperature when running a new batch of steel? Some periods are extremely busy in our business. What are your feelings about working overtime?

23. © 2001 by Prentice Hall 5-23 Unusual Job Interview Behaviors Based on a nationwide survey of 200 executives conducted by Accountemps, the world’s largest temporary personnel service for accounting, bookkeeping, and information technology, the interview behavior of some jobseekers today can only be described as bizarre. Here are some of the more unusual behaviors respondents witnessed or heard of happening during a job interview: “Left his dry cleaner tag on his jacket and said he wanted to show he was a clean individual.” “After a difficult question, she wanted to leave the room momentarily to meditate.” “Applicant walked in and inquired why he was here.” “Said that if I hired him, I’d soon learn to regret it.” “Said if he was hired, he’d teach me ballroom dancing at no charge, and started demonstrating.” “Arrived with a snake around her neck. Said she took her pet everywhere.”

24. © 2001 by Prentice Hall 5-24 Hiring for Teamwork: What to Look For  Effective team members should be able to: u Recognize and resolve conflict u Participate and collaborate in problem solving u Communicate openly and supportively u Coordinate and synchronize activities  Effective team members usually have the following personality characteristics: u Conscientiousness u Agreeableness

25. © 2001 by Prentice Hall 5-25 The Nine Don’ts of Interviewing  Don’t ask applicants if they have children, plan to have children, or what child-care arrangements they have made.  Don’t ask an applicants age.  Don’t ask whether or not the candidate has a physical or mental disability that would interfere with doing the job.  Don’t ask for such identifying characteristics as height or weight on an application.  Don’t ask a female candidate for her maiden name.  Don’t ask applicants about their citizenship.  Don’t ask applicants about their arrest records.  Don’t ask if a candidate smokes.  Don’t ask a job candidate if he or she has AIDS or is HIV- positive.

26. © 2001 by Prentice Hall 5-26 Sources for Recruiting Minorities When the Hospital Council of Southern California wanted to recruit among teens and second-career adults in Los Angeles minority communities, it printed ads in English and Spanish and posted them in metro-area buses over a six- month period. The ad said, “if you would like to earn $25,000-$50,000 a year after only 2-6 years of education, consider health care —a career that never goes out of style,” and featured a “take-one” card with a toll-free number. The council got 929 calls, 329 of which were from Latinos. State Fair Employment Agency Regional Equal Employment Opportunity office Small Business Administration Local chamber of commerce Community organizations City council office County human rights commission State department of rehabilitation Historically black colleges and universities Hispanic Association of Colleges and Universities Professional associations Student associations Alumni associations Church organizations

27. © 2001 by Prentice Hall 5-27 Socialization Socialization involves orienting new employees in the organization and to the units in which they will be working. It is important that new employees become familiar with the company’s policies, procedures, and performance expectations. Socialization can make the difference between a new worker’s feeling like an outsider and feeling like a member of the team.