1. MGTO 324 Recruitment and Selections Staffing model, strategy, & planning Kin Fai Ellick Wong Ph.D. Department of Management of Organizations Hong Kong University of Science & Technology

2. Prologue The idea of staffing has been very salient in Chinese history and culture –“Recruitment” was a highly valued activity in our History East Han Dynasty ( 東漢 ), –Recruitment = assessing moral standard but not others –Filial piety x integrity ( 察舉孝廉 ) Wei Dynasty in the three-kingdom period ( 魏 ) –Recruitment = assessing relevant knowledge and skills, regardless of moral –Relevant knowledge » 唯才是舉，吾得而用之 > »Those with relevant skills and knowledge will be selected

3. Outline Class 2: Staffing model, strategy, & planning Part I: Staffing Model Part II: Staffing Strategy Part III: Human Resource Planning

4. Outline Class 2: Staffing model, strategy, & planning Part I: Staffing Model Part II: Staffing Strategy Part III: Human Resource Planning

5. Part I: Staffing Model Defining “staffing” –“the process of acquiring, deploying, and retaining, a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness” Acquiring: external staffing, new blood Deploying: internal staffing (promotion, transfer) Retention: turnover, compensation, etc.

6. Part I: Staffing Model Can “good” staffing lead to better organizational effectiveness? –Yes, strongly supported by research findings Youndt et al., (1996, Academy of Management Journal) –Selectivity +ve  organizational performance Greer et al. (2001, Journal of Business Research) –Countercyclical hiring +ve  organizational performance 2 years later Russell (2001, Journal of Applied Psychology) –Using the effective selection system used by a Fortune 500 organization resulted in more profits.

7. Part I: Staffing Model The Basic Model –Staffing = counting Considering quantity but not quality The simplest model Exhibit 1.1

8. Exhibit 1.1 Staffing Quantity Projected Staffing Requirements Projected Staffing Availabilities Compare Overstaffed Fully Staffed Understaffed

9. Part I: Staffing Model The person/job match model –Staffing = counting + the person-job match Job characteristics x individual characteristics –Designers: create new items »Creative, imaginative –Social workers: help people with problems »Empathetic, not selfish –Researchers: discover new knowledge »Hardworking, curious to knowledge

10. Exhibit 1.2 Person/Job Match Job Requirements Rewards Person KSAOs Motivation Match HR Outcomes Attraction Performance Retention Attendance Satisfaction Other Impact

11. Part I: Staffing Model The person/organization match model –Staffing = counting + the person-job match Job characteristics x individual characteristics x organizational contexts –Organization values, culture, career development East Han Dynasty

12. Exhibit 1.3 Person/Organization Match Job Requirements Rewards Person KSAOs Motivation Match HR Outcomes Attraction Performance Retention Attendance Satisfaction Other Impact Organization Values New Job Duties Multiple Jobs Future Jobs

13. Part I: Staffing Model Relationship between applicants and job –Depending on the economy At times, organization may be the dominant player At other times, the applicant may be the aggressor –Depending on demand / supply For jobs that the supply is more than the demand –Organization becomes dominant »E.g., The demand of IT jobs dropped significantly in and after 2001 For jobs that the demand is less than the supply –Applicants become dominant »E.g., hiring good professors in business school

14. Exhibit 1.4 Staffing System Components Applicant (person) Organization (job) Recruitment (identification and attraction) Selection (assessment and evaluation) Employment (decision making and final match)

15. Part I: Staffing Model Staffing Organizations Model –Strategic Human Resource Management Organizational Strategy  HR (Staffing) strategy Staffing becomes part of the overall organization strategy Core staffing activities are carefully “calibrated” to match the organization strategy

16. Exhibit 1.5 Staffing Organizations Model Organization Missions Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Legal compliance Planning Job analysis Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match Staffing System and Retention Management Core Staffing Activities

17. Outline Class 2: Staffing model, strategy, & planning Part I: Staffing Model Part II: Staffing Strategy Part III: Human Resource Planning

18. Part II: Staffing Strategy Staffing Strategy Staffing Levels: Getting sufficient no. of staff Staffing Quality: Getting qualified staff

19. Part II: Staffing Strategy Staffing Strategy Staffing Levels: Getting sufficient no. of staff Staffing Quality: Getting qualified staff

20. Part II: Staffing Strategy Staffing Levels (think about HKUST) –Acquire or develop talent –Lag or lead system –External or internal hiring –Core or flexible workforce –Hire or retain –National or Global –Attract or relocate –Overstaff or understaff –Hire or acquire

21. Part II: Staffing Strategy Staffing Strategy Staffing Levels: Getting sufficient no. of staff Staffing Quality: Getting qualified staff

22. Part II: Staffing Strategy Staffing Quality (again, think about HKUST) –Person/job or person/organization match –Specific or General KSAOs Knowledge, Skills, Abilities, and Other characteristics –Exceptional or Acceptable Workforce Quality –Active or passive diversity

23. Outline Class 2: Staffing model, strategy, & planning Part I: Staffing Model Part II: Staffing Strategy Part III: Human Resource Planning

24. Part III: Human Resource Planning Defining “Human Resource Planning” –A process and set of activities undertaken to forecast an organization’s labor demand and internal labor supply (availabilities) –Key steps 1.determine future human resource demands 2.determine future human resource availabilities 3.conduct external & internal environment scanning 4.determine gaps between demands and availabilities 5.develop action plans to close the projected gaps

25. Exhibit 3.13 Operational Format and Example for Human Resource Planning (HRP) Organizational Unit: Sales and Customer Service Forecast for Workforce— One Year Job Category and Level Current WorkforceRequirementsAvailabilities Reconciliation and GapsAction Planning A1 (Sales) 10011071 -39(shortage) Staffing activities Recruitment Selection Employment Other HR activities Compensation Training and development A2 (Sales manager) 201522 +7(surplus) B1 (Customer service representative) 200250140-110(shortage) B2 (Customer service manager) 15 25 22 -3(shortage) 335400255-145(shortage)

26. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

27. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

28. Part III: Human Resource Planning Step 1: forecasting the demands –Use of statistical techniques Project the past to the future –Ratio analysis »$1000 sales per each salesmen; I need 20 salesmen for $20,000 sales –Multiple regression analysis »The concepts are relatively complex »Some techniques will be introduced in Workshop 6

29. Part III: Human Resource Planning Step 2: forecasting HR (within organization) availabilities –Use of statistical techniques It is a simple probability calculation Four job positions –Sale team: A1 (Sale manager); A2 (Account manager) –Support team: B1 (Executive officer); B2 (Clerk) List all possible movements –Job stability (remain in A1, A2, B1, and B2) –Promotion (A2  A1; B2  B1) –Demotion (A1  A2; B1  B2) –Exit (leaving the organization) This information enables us to know the availability of each position –Markov Analysis (Workshop 2)

30. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

31. Part III: Human Resource Planning Step 2: forecasting HR (within organization) availabilities –Use of statistical techniques It is a simple probability calculation Four jobs –Sale team: A1 (Sale manager); A2 (Account manager) –Support team: B1 (Executive officer); B2 (Clerk) List all possible movements –Job stability (remain in A1, A2, B1, and B2) –Promotion (A2  A1; B2  B1) –Demotion (A1  A2; B1  B2) –Exit (leaving the organization)

32. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

33. Part III: Human Resource Planning Step 3: Environment Scanning –External scanning Process of tracking trends and developments in the outside world –More and more females decide not to have children, which implies that the projected supply of female workforce in the future years may have been underestimated –HK government significantly increases no. of undergraduate students –The government plans to recognize the diploma and degree offered by some mainland universities –Internal scanning Understanding the organization’s internal environment –Nagging personnel problems »High turnover rates, difficult in getting new qualified employees »Any conflict between the values and attitudes of manages and the current business plan?

34. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

35. Part III: Human Resource Planning Step 4: Determining the gaps –Surplus The availabilities will be more than the demands –Slowing down promotion –Early retirement –Shortages The demands will be more than the availabilities –Increasing transfer –External staffing

36. Exhibit 3.13 Operational Format and Example for Human Resource Planning (HRP) Organizational Unit: Sales and Customer Service Forecast for Workforce— One Year Job Category and Level Current WorkforceRequirementsAvailabilities Reconciliation and GapsAction Planning A1 (Sales) 10011071 -39(shortage) Staffing activities Recruitment Selection Employment Other HR activities Compensation Training and development A2 (Sales manager) 201522 +7(surplus) B1 (Customer service representative) 200250140-110(shortage) B2 (Customer service manager) 15 25 22 -3(shortage) 335400255-145(shortage)

37. Part III: Human Resource Planning Step 1: Forecasting HR demands Step 2: Forecasting HR availabilities Step 3: Environment scanning Step 4: Determining gaps Step 5: Action plans

38. Part III: Human Resource Planning Step 5: Action plans –Set objectives Set clear additions or subtractions of head count on each of the possible movements (e.g., new hires, promotions, transfers, demotions, and exits) –Generating alternatives How to solve the shortage of 39 account managers? –Long-term vs. short-term solutions –Alternative 1: +20 new hires, +20 promotions, +20 transfers, 0 demotions, and -21 exits –Alternative 2: +40 new hires, + 0 promotions, +0 transfers, 0 demotions, and -1 exits –Alternative 3: hiring more part-time account managers, encouraging overtime working, outsourcing, etc.