MGT 340 CH 5-6 Planning, Recruiting, and Selecting Employees

CHAPTER 5 Planning for and Recruiting Human Resources

Discuss how to plan for HR needed to carry out the org strategy

• the first step in HR planning is personal forecasting. Thru trend analysis and good judgement, the planner tried to determine the supply and demand for various HR

• based on whether a surplus or a shortage is expected, the planner sets goals and creates a strategy for achieving those goals

• the org then implements its HR strategy and evaluates the results

Determine the labor demand for workers in various job categories

• The planner can look at leading indicators, assuming trends will continue in the future.

• Multiple regression can convert several leading indicators into a single prediction of labor needs.

• Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.

• Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.

• To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting. Also, the organization may lose some of its best employees.

• Transferring employees and requiring them to share work are also fast methods, and the consequences in human suffering are less severe.

• A hiring freeze or natural attrition is slow to take effect but avoids the pain of layoffs.

• Early-retirement packages may unfortunately induce the best employees to leave and may be slow to implement; however, they, too, are less painful than layoffs.

• Retraining can improve the organization’s overall pool of human resources and maintain high morale, but it is relatively slow and costly.

• To avoid a labor shortage, requiring overtime is the easiest and fastest strategy, which can easily be changed if conditions change. However, overtime may exhaust workers and can hurt morale.

• Using temporary employees and outsourcing do not build an in-house pool of talent, but they quickly and easily modify staffing levels.

• Transferring and retraining employees require investment of time and money, but can enhance the quality of the organization’s human resources; however, this may backfire if a labor surplus develops.

• Hiring new employees is slow and expensive, but it strengthens the organization if labor needs are expected to expand for the long term. Hiring is difficult to reverse if conditions change.

• Using technology as a substitute for labor can be slow to implement and costly, but it may improve the organization’s long-term performance. New technology also is difficult to reverse.

LO 5-4 Describe recruitment policies organizations use to make job vacancies more attractive.

• Internal recruiting (promotions from within) generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.

• Lead-the-market pay strategies make jobs economically desirable.

• Due-process policies signal that employers are concerned about employee rights.

• The Internet provides opportunities for an organization to align its image with the actual experience of working for the company with photos, videos, and stories on the company’s website, as well as direct engagement with workers via social media.

LO 5-5 List and compare sources of job applicants.

• Internal sources, promoted through job postings, generate applicants who are familiar to the organization and motivate other employees by demonstrating opportunities for advancement. However, internal sources are usually insufficient for all of an organization’s labor needs.

• Direct applicants and referrals tend to be inexpensive and generate applicants who have self-selected; this source risks charges of unfairness, especially in cases of nepotism.

• External recruiting, such as job search and networking platforms, gives organizations access to both people looking for jobs and those who may not be actively looking for work.

• Although they still play a role in recruiting, job boards have evolved to offer more than an online space for advertisements. They now allow job seekers to set up profiles and alert them when job openings are posted that match their search criteria.

• Public employment agencies are inexpensive and typically have screened applicants.

• Private employment agencies charge fees but may provide many services.

• Another inexpensive channel is schools and colleges, which may give the employer access to top-notch entrants to the labor market.

LO 5-6 Describe the recruiter’s role in the recruitment process, including limits and opportunities.

• Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated.

• Applicants tend to perceive job experts as more credible than recruiters who are HR specialists.

• Applicants tend to react more favorably to recruiters who are warm and informative.

• Recruiters should not mislead candidates. Realistic job previews have only a weak association with reduced turnover, but given their low cost and ease of implementation, employers should consider using them.

• Recruiters can improve their impact by providing timely feedback, avoiding behavior that contributes to a negative impression of the organization, and teaming up with job experts.

CHAPTER 6 Selecting Employees and Placing Them in Jobs

Identify the elements of the selection process

• selection typical begins with a review of candidates’ employment applications and resumes

• the org administers tests to candidates who meet basic requirements

• qualified candidates undergo one or more interviews

• org check references and conduct background checks to verify the accuracy of information provided by candidates

• a candidate is selected to fill each vacant position

• candidates who accept offers are placed in the positions for which they were selected

Define ways to measure the success of a selection method

• One criterion is reliability, meaning free from random error, so measurements are consistent

• a selection method should also be valid, meaning that performance on the measure (such as a test score) is related to what the measure is designed to assess (such as job performance)

• Criterion-related validity shows correlation between test scores and job performance scores

• Content validity establishes that the test actually measures a specified construct, such as intelligence or leadership ability, which is presumed to be associated with success on the job

• A selection method also should be generalizable, or applicable to more than one specific situation

• each selection method should have utility, meaning it provides economic value greater than it costs

• each selection method should have utility, meaning it provides economic value greater than its cost

• selection methods should meet the legal requirements for employments decisions

Summarize the governments requirements for employee selection

• the selection process must be conducted in a way that avoids discrimination and provide access to persons with disabilities

• selection methods must be conducted in a way that avoids discrimination and provides access to persons with disabilities

• Questions may not gather info about a persons membership in a protected class , such as race, sex, or religion, nor may the employer investigates a person’s disability status

• employers must respect candidates’ privacy rights and ensure that they keep personal information confidential

• Employers must obtain consent before conducting background checks and notify candidates about adverse decisions made as a result of background checks

Compare the common methods used for selecting HR

• Nearly all organizations gather information through employment applications and résumés. Today, most applications can be found online, either on a company website or a job search engine platform like Indeed or ZipRecruiter. These methods are inexpensive, and an application form standardizes basic information received from all applicants. The information is not necessarily reliable, because each applicant provides the information. These methods are most valid when evaluated in terms of the criteria in a job description.

• References and background checks help verify the accuracy of applicant-provided information.

• Employment tests and work samples are more objective. To be legal, any test must measure abilities that are actually associated with successful job performance. Employment tests range from general to specific. General-purpose tests are relatively inexpensive and simple to administer. Tests should be selected to be related to successful job performance and avoid charges of discrimination.

• Interviews are widely used to obtain information about a candidate’s interpersonal and communication skills and to gather more detailed information about a candidate’s background. Structured interviews are more valid than unstructured ones. Situational interviews provide greater validity than general questions. Interviews are costly and may introduce bias into the selection process. Organizations can minimize the drawbacks through preparation and training.

Describe major types of employment tests

• -Physical ability tests measure strength, endurance, psychomotor abilities, and other physical abilities. They can be accurate but can discriminate and are not always job related.

• Cognitive ability tests, or intelligence tests, tend to be valid, especially for complex jobs and those requiring adaptability. They are a relatively low-cost way to predict job performance but have been challenged as discriminatory.

• Job performance tests tend to be valid but are not always generalizable. Using a wide variety of job performance tests can be expensive.

• Personality tests measure personality traits such as extroversion and adjustment. Research supports their validity for appropriate job situations, especially for individuals who score high on conscientiousness, extroversion, and agreeableness. These tests are relatively simple to administer and generally meet legal requirements.

• Organizations may use paper-and-pencil honesty or integrity tests, which can predict certain behaviors, including employee theft. Organizations may not use polygraphs to screen job candidates.

• Organizations may also administer drug tests (if all candidates are tested and drug use can be an on-the-job safety hazard).

• Passing a medical examination may be a condition of employment, but to avoid discrimination against persons with disabilities, organizations usually administer a medical exam only after making a job offer.

Discuss how to conduct effective interviews

• interviews should be narrow, structured, and standardized.

• interviewers should identify job requirements and create a list of questions related to the requirements

• interviewers should be trained to recognize their own personal biases and conduct objective interviews

• panel interviews can reduce problems related to the interviewers bias

• interviewers should put candidates at ease in a comfortable place that is free of distractions. Questions should ask for descriptions of relevant experiences and job related behaviors

• the interviews also should be prepared to provide information about the job and the org

Explain how employers carry oput the process of making the selection decision

• the org should focus on the objective of finding the person who will be the best fit with the job and organization. this includes an assessment of ability and motivation

• decision makers may use a multiple-hurdle model in which each stage of the selection process eliminates some of the candidates from consideration at the following stages. At the final stage, only a few candidates remain, and the selection decision determines which candidates is best fit.

• an alternative is a compensatory model, in which all candidates are evaluated with all methods. a candidate who scores poorly with one method may be selected if they score a very high on another measure.