Human Resource planning and recruitment 10/26/16 3:26 AM Effective Human Resource Planning Six Steps of HRP • Environmental scanning- identify and anticipate sources of threats and opportunities, scanning the external environment and internal environment • LaIf you want to learn more check out What is the structural-functionalist approach?
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bor demand analysis- project how business needs will affect HR needs, using qualitative methods and quantitative methods • Labor supply analysis- project resource availability from internal and external sources • Gap analysis- reconcile the forecast of labor supply & demand • Action programming- implement the recommended solution from the gap analysis • Control & Evaluation- monitor the effects of the HRP by defining and measuring critical criteria Work force diversity --- no questions on percentages but know if its growing or shrinking • In the U.S it is very strong so there are concerns. o Fast growing labor force group is 55 and older INC o Workers aged 25-34 will DEC o Minorities are up there with majority o Women will constitute 47 percent of labor force by 2016 o Hispanics is 16%, 27 MILLION-INC o African Americans 12%- staying the same o Worse for Hispanic women, black women move faster then black men o Hispanic businesses INC o Women business owners INC o Black are INC dramatically o Service industries have the most jobs 88% Labor Demand Forecast – Qualitative methods: • Centralized approach- HR department examines the current business situation and determines staffing requirements for the firm • Decentralized approach- each unit manager derives his own staffing needs and the projections are aggregated to create an overall composite forecast for the firm. Push down to individual managers and ask them to say what are staffing needs – no consistency, then mangers need more staff, diff to have staffing needs • Delphi technique- formalized problem-solving method avoids face to face group discussion by use of an intermediary and utilizes several rounds of estimates by experts to create a forecast- send things out • Nominal group technique- formalized problem-solving method similar to Delphi method however experts meet face-to-face (group votes) Quantitative methods: • Trend analysis- project changes in the business factor and or the productivity ratio in order to forecast changes in the labor demand • Regression analysis- look at the past to predict future Labor supply forecast internal • Individual currently available within the firm • Can track through… o HRIS o Skills inventories o succession planning- more and more people are trying to do this to forecast who can replace people that leave o Markov analysis (figure 5-7) – NOT TESTED ON THIS • Important to control privacy and security of electronic databases External: - looking at people outside of the from that may be good fit for the company that you may want to hire • Look at: o Skills needed determine the relevant labor market o The labor market will determine the recruitment strategy Immigration issues: • Despite penalties, employment of illegals is rampant in some U.S. industries • Competition on price • Savings in wages, benefits, social security • E-verify Immigration reform and control act – 1986 • Form of control of labor supply • Deter illegal immigration• Employers are required to verify the identity and work authorization of every new employee • Employees must sign I-9 form • Criminal penalties are possible • Financial penalties for employers who knowingly hire undocumented workers • Increase enforcement at us borders Gap Analysis – reconcile the forecast of labor demand and supply • Prepare for future events, shortages, surpluses Strategies for effective downsizing • Re-engineering can improve competitive advantage • Downsize with customer focus • Strategic planning can minimize need to downsizing • Virtue in stability • Seek employee input • Implement a fair process • Communicate • Manage diversity issues Alternative solutions to downsizing • Use of temporary employees • Job sharing • Telecommuting Research on Downsizing • Not effective for bottom-line • Cost-saving measures may be more effective • Negative effects on effectiveness and performance for some firms Control and evaluation • Monitoring the effectiveness of HR plans overtime o Long range planning requires meeting short-range goals o Deviations are seen and action is taken o Progress is measured through feedback Recruitment • Action plan when demand is higher than supply • Recruitment and other HR activities are interdependent • Technology impact • DIFFICULTY:o Economy o Supply and demand o Hr. policies o Organizations reputation Essential steps for recruitment planning • Work analysis- job descriptions and job specification • Time lapse data- time that elapses between points of decision making • Yield Ratios- reflect the ratio of applications to hires o Future recruiting tool o Evaluate recruiting methods o Estimate # of applicants necessary Recruitment measuring effectiveness • Time taken to fill position, retention, turnover, cost per hire, number of apps generated by sources Internal recruiting- Seeking applications for positions from among the ranks of those already employed • Adv.: better assessment of candidates, reduces training time, faster, cheaper, motivates employees, HPWS o Succession planning reduces turnover o Is creativity stifled by internal recruitment • Problems: o Escalation bias (could get better lets keep them), o Unit raiding, o Politics, - o Peter principle- Rob peter to pay Paul o Increases vacancies, stifles diversity, insufficient supply External Recruiting- seeking applicants for positions from outside the organization • Adv.: increases diversity, facilitates growth, shorten training time, theory that you get new/ novel problem solving • Dis: expensive, slower, less reliable data, stifles upward movement of personnel Sources: • Walk-ins/ unsolicited applicant files • Referrals• Advertising • Employment agencies • Search firms • Campus visits • Electronic recruiting on the world wide web Recruitment evaluation – *don’t need to know • Biggest- how long it takes to fill the position Recruitment Philosophy • Use realistic job previews (RJPS) • Job app can evaluate the compatibility of what the job entails with their own work preferences • Reduce turnover • Self selection Strategies for recruiting the millennial • Put more emphasis on employee referrals • Offer job internships and job tryouts • “Talk 2 Them” While face-to-face communication is important for workers of any age, electronic communications become an essential supplement for Generation Y workers. • Offer flexible work arrangements • Offer sabbatical sand time off for community / volunteer service • Offer pay packages EEO and recruitment practices • Referrals • Advertising • Internet- digital divide Multinational corporations- relation between HRP and strategic planning for overseas ventures is weaker than for domestic ventures • Major challenges: • Identifying managerial talent • Identifying criteria for success • Motivating employees for take overseas assignment • Establishing stronger link between HRP and strategic plan Three sources of candidates • U.s candidates • Candidates form host country• Candidates from all nationalities10/26/16 3:26 AM Yield Ratio: Qualified divided by number of applicants then times by 100% So 200/1200 X 100% Next step 150/200 Then 100/150 And 50/100 Example: New Hires= 7 Offers made- 9 Candidates Interviewed = 75 Candidates invited- 100 Leads Generated- 238 Yield ratio at each level and Overall YR 7/9 X 100%= 77.8% 9/75 X 100%= 12% 75/100 X100%= 75% 100/238 X 100%= 42% Overall Yield Ratio= 7/238 X 100% = 2.9% Wonderlic Cognitive Ability Test- know what it measures • Intelligence, aptitude, and problem solving A.PS.IPersonal selection 10/26/16 3:26 AM Selecting new employees Selection is the process of choosing the best-qualified applicant recruited for a job. Quantifiable Measures • Reliability- consistency; refers to whether specific technique, applied repeatedly to the same result each time • Validity- really measuring what it says its measuring • Utility- concerns the economic gains derived from using a particular selection method Poor selection process results: • Wasting time and money, reduced productivity, negligent hires (company is liable) Looking for “fit • Personality-job fit – personality affects how people work • Ability-job fit- individuals physical and intellectual skills affect how they work o Certain requirement and skills • Person-organization fit- how individuals fit within the organization’s structure and culture affects how well they work o The culture Legal issues: • The uniform guideline on employee selection procedures (EGESP) – how to avoid discrimination • In uniform guidelines- what qualifies as an employment test? o Must be useful for that decisions- test used as a basis for any employment decision. o Firing, hiring, promoting etc. • To be non-discriminatory, employment tests must be: o Valid o Reliable Applications and Preliminary Screening • Applications and resumes- biographical data Application Blanks and biographical data • Weighted application blankso Objective weighting system based on an empirical research study o Responses are statistically related to one or more important criteria such that the critical predictive relationships can be identified • Biographical information blanks o More personal and experiential-based on personal background and life experiences • Accomplishment records- limits explanation to accomplishments what you accomplished- weighted in terms of challenges similar to job challenges Application and preliminary screening • Pre-employment inquiries- all information requested on job applications and during interviews must be non-discriminatory Employment testing and legal issues • The EEOC- investigates complaints about an employment test Testing: • Polygraph tests- employee polygraph protection act- Illegal to use two exceptions like FBI • Genetic testing- genetic information nondiscrimination act GINA protects people from discrimination by health insurers and employers on the basis of their DNA • Drug testing- for workplace safety and productivity must be either random or universal o Types of testing- urinalysis or hair o Linked to counterproductive work behavior o Legal for pre-employment and on the job testing o Spend a lot of money on it • Written tests: o Skill tests- apply knowledge o Personality tests- measure traits o Interest tests- motivation o Cognitive ability tests- intelligence o Honesty/integrity tests- written Employee Theft: 400 billion, tests have gone up • Validity evidence is strong, no adverse impactPhysical tests- capable of performing jobs • Physical skills tests: o Work samples o Assessment centers o Simulations • Physical exams- should be directly related to the essential functions of the job Performance testing- behavior responses required by test takers that are similar to responses required on the job • Situational judgment tests • Simulations • High validity for managerial positions • More defensible in court Selection Interviews • Interviews are generally the most heavily weighted and on of the last steps o Allows candidates to learn about the job o Allows managers to find out about candidate and check accuracy Types of interviews** Structured interviews- asked same list of prepared questions Semi structured interview-list but also unplanned questions Unstructured interview no preplanned questions or sequence of topics (most discrimination) Types of questions Closed ended- limited yes/no Open ended- detailed Hypothetical- what they do Probing- deeper into answer Employee interview Bias • First impression, stereotypes, lack of job info Improving Validity • Training• Match questions • Structured interview • Consistent rating standards • 3 independent interviewers Reference checks and background checks • Verify info • Lawsuits for fraud • Positive letters • Job related Fair Credit Reporting Act (FCRA) • Regulates how agencies provide investigative consumer reports o Employer must: give notice in writing, provide candidate with summary of right, certify with company to comply, provide copy of report Selecting: • Multiple hurdle selection model- pass one test to go to next- cost effective • Compensatory selection model- do bad on one test, but take the nextCh. 7 Performance Management and Appraisal 10/26/16 3:26 AM 7.4 performance appraisal 709 Definition of performance- record of outcomes produced on job function during a specified time period Job performance = sum of performance on the major job function or activities Uses of performance data • Performance improvement • Compensation o Pay for performance • Staffing o Promotion, retention, termination decisions o Most lawsuits involving PA concern staffing decisions • Training needs assessment • Research and Program Evaluation o Validation of staffing methods o Assessment of HRM programs or activities • Performance data • Legal issues: o Appraisal data is subject to legal scrutiny o Perception of bias o Seek relfed through ▪ Title VII of the civil rights act ▪ Age discrimination in employment act ▪ Equal pay act of 1963 ▪ American with disabilities act of 1990 o Violation of the 80% rule indicator of negative employer o Focus on excessive subjectivity Avoiding legal issues • 1. Audit personnel decision from PA data • 2. Ensure a fair formal standardized format and process • Use objective/ quantifiable measurement of behavior and outcomes • 4. Allow for formal appeal when rate and rater disagreeThe design of an appraisal system • What points should be considered? o Measurement content o Measurement process o Who should rate performance o Level of performance to rate o Delivering feedback Designing an appraisal system measurement content o Consider the objectives then define performance through a record of outcomes • 6 performance outcomes o Quality, quantity o Timeliness o Cost-effectiveness o Need for supervision o Interpersonal impact/ contextual or citizenship performance Methods and Formats The measurement process • Three basic comparisons methods for raters o 1. Among ratees performance ▪ Forced distribution- level in all categories and it has to have middle. (Bad) o 2. Among anchors or standards ▪ Forced choice o 3. Of individuals performance to anchors ▪ Behaviorally anchored rating scales (BARS) ???? What behavior has to take place to be on that format ▪ Summated rating scales (BOS) (skip this one) ▪ Comparison Among rates • Paired comparisons- rater compares all possible pairs of ratees on overall job performance • Straight ranking- rater ranks employees on overall job performance from best to worse o All points and put in orderForced distribution – love it or leave it; rater is forced to place rates in categories- limited in each category • GE no longer uses this system • Microsoft sopped as well • Ford – lawsuit on case • Estimated 20% of companies use some type of forced dis • Research not favorable • Helps decide layoffs • Not favorable method- al dislike the method The measurement process: Computer adaptive rating scales- level of performance; presented raters with pairs of behavior statements reflecting different levels of performance on the same performance dimension Forced choice- eliminate intentional rating bias • Raters don’t like this method • Scoring key is not known to the rater • Requires the rater to compare performance statements and select one or more as the most descriptive • Ex: pick two statements that’s most descriptive of instructor – 2/4 show effectiveness from ineffectiveness performers Performance level anchors – poor to excellent • Graphic rating scales-use objectives/ numbers as anchors to rate someone • Behavioral anchored rating scales- BARS- graphics rating scales with specific descriptions as anchors instead of adjectives Performance distribution assessment – opp to performance • Measurements with situational constraints *** is important • Situational- out of your control which may prevent you from doing good Performance Distribution Assessment – PDA- ratings made based on context of opportunities to perform • Incorporates measurement of situational constraints Management by objective MBO- trickle down objectives to lowest employee then evaluate • Many challenges, what if anyone reaches and get raises • Specific goals are determined by manager and worker at beg then revisited at the end Summated scales- most popular method- but Alonso doesn’t think so Possible situation constrains on performance • Absenteeism or turnover of the personnel • Inadequate clerical support • Shortage of supplies • Ant hire needed staff • … Etc. Rating errors • Leniency/ severity- rated at the high end (leniency) or low end (severity) across all performance categories • Halo-horns effect o Rater allows high (halo) or low (horns) rating on one performance category to influence others • Central tendency- rate toward center • Fundamental attribution error/ actor-observer bias • Representativeness- making judgments based on similarities of others • Availability- make judgments on what’s available to us • Anchoring- the tendency to insufficiently alter a judgment from an initial judgment Control of rating errors • Overcoming Unintentional errors o Rater training o Frame of reference training • Overcoming intentional errors o Leniency/severity related to elements of the five factor model o Hidden scoring keys o Forced distribution o Cross-checks or reviews or rating by other people o Multi-rater systems o Training raterso Accountability Defining the raters • Single individual • Supervisor • Peers • Clients or customers/mystery shoppers • Higher-level managers • Multirater or 360 systems o Beneficial for improved accuracy, few biases, perceptions of fairness & fewer legal issues o High performance work practice • Work group or business unit • Division of organization • Organization wide Assess performance on aggregate level when • 1. High work group cohesiveness • 2. Difficult in identifying individual contributions Match the level of appraisal with the objective being appraised Benchmarking- process of measuring internal practices against an external reference • Most often used at the aggregate level • Trop management support critical Shaping- process to facilitate gradual, sustained improvement based on benchmark idea Administration considerations • Frequency • Timing • Rating/ data collection methods o Hard coopt/ computer • Training program • Feedback methods Performance appraisal process • 1. Preparation • 2. Encourage self-evaluation – anchoring• 3. Set convenient time and place for uninterrupted meeting • 4. Provide feedback- beware of errors • 5. Evaluate yourself as a manager Delivering Feedback • Provide specific & timely feedback • Be descriptive & job related • Supportive feedback provides motivation • Greater precision leads to improved performance • Performance cues support performance • Train raters to give negative feedback • Employees to read, review & sign-off on performance appraisals • Provide opportunity for comments & appeal Training and Development 10/26/16 3:26 AM Training and Employee Development • Training is a High Performance Work Practice • Effective training & development contribute to the bottom line • Exceptional training is a characteristic of companies identified as the “best” to work for • Training should be aligned with other High Performance Work Practices Trends impacting need for training • Ethics • Economic changes • Technological changes • Increased workforce diversity • Changing concept of work • Increased need for flexibility • Increased pressure to compete BEST organizations common characteristics • Learning has an enterprise wide role • Learning has value in the organization’s culture • Link between learning & performance • Investment in learning & performance initiatives Training— any attempt to improve employee performance on the job, usually includes changes in knowledge, skills, or abilities of the trainee Development— broadly covers anything that helps employees grow. This includes job-related training, career planning, & general personal development such as assertiveness training. • Training is exceptionally popular in the US, A multi-billion dollar industry, & falls under the Larger umbrella of employee development Training and Competencies The type of training offered is based on the competencies employees need to have in order to perform their jobs successfully. Competency models – identify the knowledge, skills, and abilities (KSA) needed in order to perform a particular job in the organization and the types of training a new employee or one who changes jobs will need.When is Training Needed? New employee orientation – the process of introducing new employees to the organization and their jobs. For new job requirements or processes. Remediation - the correction of a deficiency or failure in a process or procedure. Employee development for advancement. Steps in the training process • 1. Assess needs for training and development • 2. Select how to shape behavior through training • 3. Design the training • 4. Deliver the training • 5. Assess the training Challenges to the Training Process • Unprepared workforce – many people being hired are ill prepared in educational basics. • Return on Investment/Cost Justification – training is time consuming and expensive. • Resistance to change and employee insecurity. • Strategic congruence – justifying the training by ensuring that it furthers the strategic goals of the organization. • Scheduling – timing training to minimize problems. Employee Readiness • Ability – do employees feel they are able to participate in the training process? • Self-efficacy – do the employees believe they have the capability to do something or attain a particular goal? • Willingness –are the employees willing (motivated) to learn what's being taught in a training program? Learning Trainers must understand how people learn so they can shape or change employee behavior effectively. Learning is a response that results in a change in the way someone acts.• Classical Conditioning – stimulus-response; results in direct, involuntary, learned behaviors. • Operant Conditioning – learning is a result of desiring rewards and avoiding punishment; direct, voluntary learned behavior. • Social (Vicarious) Learning – watching the actions of another person and consequences of their actions; indirect, voluntary learned behavior. On-The-Job Training (OJT) Is done at the work site with the resources the employee uses to perform the job. • Job Instructional Training – is a successful OJT four-step model: o Preparation of the trainee. o Presentation of the task by the trainer. o Performance of the task by the trainee. o Follow-up. On-The-Job Training Advantages • People learn best by doing • Training can be immediately transferred to the job. • Training occurs on the actual job site • The training environment is interactive, with feedback • The trainer is typically highly competent in doing the job. • The instructor can customize the training to the trainees needs. On-The-Job Training Disadvantages • One-to-one training is expensive. • Trainers may not know how to teach, unmotivated or unable • The training may be inconsistent • If the equipment is expensive, it may be dangerous • Often disrupts the work environment. Classroom Training Advantages • Provides consistent knowledge to a large # of people about a topic. • Many students can be trained at the same time. • Info provided to trainees is typically more consistent than OJT. • Instructors are usually professional trainers. • Less expensive than OJT due because it's one-to-many training. • Question and answer sessions are somewhat interactive. • Does not disrupt the actual work environment.Classroom Training Disadvantages • Often a passive environment, where the learner absorbs the info • Pace of the training may be too fast/slow for some students • It is difficult to cater to different learning styles in a classroom setting Distance or E-Learning • Synchronous distance learning – all trainees sign in to website where instructor interacts with the students and teaches the topics • Asynchronous distance learning – trainees can sign in to the training site at any point in time and materials are available Distance or E-Learning Advantages • Training may be available 24/7/365. • Students can learn at their own pace. • No need for a physical classroom, or for an instructor • No time lost due to commuting. • Providing multiple media can enhance the learning process • Reasonably low cost method to train over time. • Does not disrupt the actual work environment. Distance or E-Learning Disadvantages • Trainees require self-discipline. • Trainer may not respond directly to student needs and questions. • Often lacks immediate feedback on trainee success/failure. • High initial start-up costs due to the need to create materials. • Student dishonesty is difficult to identify, testing is open book. • Lack of social interaction can inhibit learning in some fields. Simulations Advantages • Low risk method of training individuals on how to react to a complex situation. • Realism allows convincing emulation of actual physical situations. • Allows students to try out experimental solutions to a problem; if the solution fails, the simulation can be reset. • Results of students’ actions can be analyzed post hoc to determine whether are not different actions may have been more successful. • Does not disrupt the actual work environment. Simulations Disadvantages • Can become ‘a video game’ and not be taken seriously. • Systems may be very expensive to create and/or maintain.• Complex computer-based simulations = expensive processor • Some processes cannot be simulated successfully, lack of knowledge Assessing Training To evaluate whether or not the training achieved the shaped behavior identified through the needs assessment. Assessment Methods • Four-Level Evaluation Method – measures: • Reaction – how the individual responds to the training process. • Learning – what knowledge was gained, whether new skills have been learned, and whether attitudes towards the person’s knowledge or skill set have changed. • Behaviors – whether the trainee’s on-the-job behaviors changed. • Results – whether individual behavioral changes have improved organizational results. Talent Management and Development Development programs follow the same five steps in the training process. • Career Development – firms make career paths and career counseling available so employees: o Can achieve personal goals over the course of their career. o Are more motivated, which can lead to improved productivity and job satisfaction, and lower absenteeism and turnover. Common Methods of Employee Development Formal Education – courses and degree programs. • Experience – job-related experiences, e.g., job rotation. • Employee assessments – reveal how employees think, interact with others, and manage their own actions and emotions. • Psychological assessments – reveal the employee’s style of thinking, interacting with others, management and leadership. • Emotional intelligence assessments – reveal how employees identify, understand and use their emotions and others’ to promote working relationships. 10/26/16 3:26 AM For test- only 4/5 questions on ch 9 A career has two components • Internal focus – your view of your career • External focus – your actual job & positions you fill Career Planning - becoming more aware of one’s own skills, values, opportunities, & constraints Involves making & constantly updating career goals & plans to achieve those goals Career Management - organizational process of preparing, implementing & monitoring career plans Career Development Systems Benefits Managers/supervisors • Increased skill in managing own careers • Better communication between manager & employee • Greater understanding of the organization Employees • Helpful assistance with career decisions • More realistic goals & expectations • Greater personal responsibility for career Organizational • Better use of employee skills • Dissemination of information • Greater retention of valued employees • Expanded public image Self-Assessment Tools – exercises & tests to determine interests, skills, & preferences • Career planning workshops • Career workbooks Individual Counseling –good for one-on-one, intense career work • To be effective counselors must o Build trust o Support the employee’s learning by asking him or her about the actions he or she has taken & how successful they were o Help the employee to work toward easier career goals firsto Help employee write out scripts & role-play possible scenarios o Provide positive feedback as employees take relevant career actions Career Information Services • Job posting systems • High Performance Work System Practice • Ensure all employees have access to postings • Postings list minimum job requirements • Inform applicants of the process • Skills Inventories • Career ladders & career paths • Career resource centers • Can also include newsletters, flyers, etc. Organizational assessment programs – Methods for evaluating an employee’s potential for growth & development • Assessment centers – predictive of advancement criteria • Psychological testing- Myers-Briggs • Promotability forecasting – early identification of employees with high levels of potential • Succession Planning – usually restricted to executive level management • o Creates a talent “pipeline” o Critical for long term success of small businesses o Examination of short & long term goals o Develops increased commitment & retention Developmental Programs- skills assessment & training • Job Sampling • Mentoring & E-mentoring o Establishing relationships between junior & senior colleagues or peers o Formal mentoring – arranged by the company; try & match people based on values, career aspirations, etc. Those involved with the programs often increase career aspirations in the company, job satisfaction, performance, & promotability o Informal mentoring – arranged by individuals based on similarities between themselves & others Fast-track employees – must be identified early & given constant feedback, training, & counseling Outplacement programs – assisting terminated employees in finding a position with another organization Entrenched employees – taking steps to motivate employees who are a part of the organization because they have to be (vested, need the health insurance, etc.), but do not want to be Supervisors – provide training for supervisors to be coaches, mentors, advisors, appraisers, & tools of reference Executive coaching – used to improve performance or refine behavior of executives in a company