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Copyright © Houghton Mifflin Company. All rights reserved. 6–1
Copyright © Houghton Mifflin Company. All rights reserved. 6–2
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
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Figure 3.1 A Model for Human Resource Planning
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Figure 3.4: Planning Human Resource Programs
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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.
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Figure 3.5 Replacement Chart
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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
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The New Strategic View of Job Analysis
• Job Analysis Methods Should Be:– Future-oriented– Linked to key strategic issues– More generic in their approach
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The New Strategic View (cont’d)
• Competency Modelling– Task competencies– Results competencies– Outcome competencies– Knowledge, skill, and attitude
competencies – Superior performer differentiators – Attribute bundles
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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?
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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
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Figure 6.1a Overview of the Recruitment Process — Organization
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Figure 6.1b Overview of the Recruitment Process — Applicant
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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?
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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
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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
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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
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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
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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
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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
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Formal External Recruiting Methods
• Recruitment Advertising
• Internet Recruiting
• Employment Agencies– Public Job Service Agencies– Private, For-Profit Agencies
• Executive Search Firms
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Source: Based on a survey of 303 HR Professionals, from HR Magazine, December 1996, p. 53. Data on Internetrecruiting is from HR Focus,May 2000, p. 8
Table 6.2 Effectiveness of Recruitment Methods
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Recruiting Targeted Groups
• Campus Recruiting
• Older Workers
• Disabled Workers
• Disadvantaged Workers
• Minorities
• Passive Job Seekers
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Non-Traditional Approaches
QuickTime™ and a decompressor
are needed to see this picture.
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Figure 6.6 Factors Affecting Applicants’ Job Choice
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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
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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
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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
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Case 6.2 - 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?
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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
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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
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Figure 8.1 The Process of Selection
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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
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Figure 8.2 Constructing a Weighted Application Blank (WAB)
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Developing a Weighted Application Blank
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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
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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.
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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.
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Personality Tests
• Can predict non-cognitive aspects of job success with low to moderate validity
• May have incremental validity over cognitive tests
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“Big Five” Personality Dimensions
1. Extraversion --- introversion2. Friendliness, agreeableness ---
hostility, non-compliance3. Neuroticism --- emotional stability4. High conscientiousness ---
low conscientiousness 5. High openness to experience --- low
openness to experience
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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
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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
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Figure 8.7 Cone Method of Semistructured Interviewing
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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?
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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
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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.
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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
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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
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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
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Selecting Managers
• Assessment Centers– Multiple assessees– Multiple assessors– Multiple exercises: In-basket test,
leaderless group discussion, interview, tests
• Valid but expensive
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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
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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. 262-274. Note that the correlations in the
second column are correct upwards to account for restriction in range and unreliability in the measurement of performance.
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Review
• T Selection Process• Application Blanks and Biodata• Tests• Interviews• Physical Testing• Reference and Background Checks• Selecting Managers• Criteria for Choosing Selection Devices