This document contains Chapters 4 to 5 CHAPTER 4 WORK ANALYSIS AND DESIGN Chapter Objectives After reading this chapter, you should be able to Understand what work analysis is and what its major products are. Explain the purposes and uses for work analysis data. Compare and contrast methods for collecting data. Describe commonly used and newer methods for conducting work analysis, including O*NET. Describe the process of competency modeling and compare this method to others forms of work analysis Explain how work analysis information is applied to job design efforts. CHAPTER 4 - SUMMARY Overview Work analysis is the foundation for HR systems. Work analysis leads to products to create and sustain organizational capability. Effective work analysis increases the probability that HR deliverables will meet the requirement of customers, both internal and external. What is Work Analysis? Work analysis is a systematic process of gathering information about work, jobs and the relationships among jobs. The major steps in conducting a work or job analysis. What are the required outputs and how do we measure them? What are the essential tasks, activities, behaviors required to meet or exceed the output requirements? What is the relative importance, frequency, and essentiality of these tasks for achieving measures at step output requirements? How do the tasks relate to one another? What are the raw inputs that are required for the outputs and what specific equipment is necessary? What are the necessary knowledge, skills, abilities, and other characteristics or competencies required to perform the activities at step 2? How should jobs/work be defined? Where does the work get done to maximize efficiency/ effectiveness? Do we use individual jobs, work teams, independent contractors, full-time/ part-time? Do we outsource? KASOC’s Knowledge - an organized body of information Ability - a demonstrated competence to perform a behavior Skill - a competence to perform a learned psychomotor act Other characteristics - personality factors, attitudes, etc What Are the Major Goals for Work Analysis? Describe the observables/desired outcomes Describe work behavior independent of worker personal characteristics Produce data that is verifiable and reliable Do We Really Need All the Specificity in Formal Job Analysis? There is a strong trend to reduce the specificity in job descriptions In Japan job descriptions are perceived to be harmful for team building; focus is on training and job rotation In Europe, highly detailed job descriptions are frequently required by regulation union agreement. Job descriptions can be aggregated to the unit or functional level, defining job specifications at the team level, and defining team member competencies. Organizations can retrieve general job descriptions from the Internet (e.g., O*NET). There are situations where great detail in the job description and job specifications may be required and helpful, particularly in response to legal action. What Is the Legal Significance of Work Analysis? EEO legislation and relevant court rulings have created greater interest in and need for work/job analysis. Griggs v. Duke Power and Albemarle Paper Company v. Moody – must demonstrate “job relatedness” of employer selection systems if adverse impact is found; one method is a thorough work analysis ADEA challenges focus on job analysis data related to BFOQs Job analysis can be used to provide justification of cut-off scores ADA may require identification of “essential functions” and redesign of jobs for “reasonable accommodations” Job analysis, particularly PAQ, can be useful to comply with FLSA What Are the Major Work Analysis Products and Purposes? Job Descriptions outline the job's content and scope (i.e. duties, tasks, activities, behaviors, and/or responsibilities). Job Specifications consists of KASOCs, experience, and special educational requirements, degrees, licenses needed to carry out job tasks. often contested in court because they cause “adverse impact” against protected classes (e.g., 80% rule violations) Unnecessary specifications can inflate wages and contribute to the glass-ceiling effect The statistical relationship between job specifications and effectiveness on the job should be assessed. Is used to redesign jobs and to determine how jobs relate to one another. Determine compensation both for individual jobs and for team competencies Used to develop performance appraisal systems Additional products and purposes can be reviewed in Figure 4-3 (p. 108). What Are the Major Methods of Work Analysis? See Figure 4-4, p. 109 for overview of methods and their advantages & disadvantages Common job analysis data collection methods. Observation. Performing the job. Interviews Critical incidents Diaries Background/personnel records Questionnaires 3. The data collected should be correlated to relevant organizational data directly relevant to the job in question (e.g., personnel performance data) What Are the Dimensions on Which Work Analysis Methods May Vary? Types of Information. Task/job -oriented methods indicate the tasks or duties required Person/Worker-oriented methods collect information on the KASOCs. Trait-oriented approaches detail the job specifications necessary (i.e. threshold traits analysis) The Form of Job Information Qualitative or narrative descriptions (e.g. CIT) Quantitative or numerical descriptions (e.g. PAQ, MPDQ) The Standardization of the Work Analysis Content HRM professionals have created uniform or consistent methods for work/job analysis The quantitative approaches are more standardized Response formats can vary Many questionnaires are now completed online Sources of Job Information Cameras Recording devices Trained job analysts, incumbents, customers, supervisors, subordinates Use of multiple sources increases the probability of capturing all facets of a job III. What Are the Most Useful Work Analysis Methods? Best source of information: Job Analysis Handbook for Business, Industry, and Government that describes many different job analysis approaches used today Position Analysis Questionnaire (PAQ). 187 items in six categories Information input requirements Mental processing Work output needs Relationships with other people Job context Other relevant job characteristics PAQ results can identify selection tests for job being analyzed Only job analysis method which specifically identifies tests with estimated validities (see Figure 4-6, page 115). Extensive research using the PAQ makes it one of the most useful tools; useful for Title VII cases to support argument of job relatedness Taylor v. James River Corporation- PAQ was used and a cognitive ability test was suggested. The test was used by the company, use of the test resulted in adverse impact. PAQ results helped support the argument of job relatedness in the use of the. Organizations should conduct their own studies of validity of employment test as soon as technically feasible, and not simply rely on PAQ recommendations PAQ results need to be understood relative to organizational context. Incumbents have a tendency to exaggerate the requirements for jobs. C. Management Position Description Questionnaire (MPDQ). Developed to analyze managerial jobs (see Figure 4-7, p. 117) 274-Item questionnaire contains 15 sections Asks significance of each item to position Data can be used in hiring, training and staff development Does not tell whether a particular job specification is necessary for a given position. Competency Modeling Focused more on how objectives are accomplished than on what is accomplished Concentrated on managerial positions and should be closely linked to business goals and strategies Attempts to identify and define the individual competencies that are common or core for an occupational group or the organization as a whole versus distinctions between jobs. Most commonly used to derive performance management and training programs. Competency – an “underlying characteristic of a person which results in effective and/or superior performance on the job” or as a “cluster of related knowledge, skills and attitudes that affects a major part of one’s job (a role or responsibility), that correlates with performance on the job, that can be measured against well-accepted standards.” (p. 118) An estimated 75% of companies have some form of competency-based application. One popular, two-level competency model distinguishes “can-do competencies” (skills and knowledge derived from education and experience) and “will-do competencies” (personality and attitudinal characteristics that reflect an individual’s willingness to perform). Define individual competencies that are core for the company. Usually does not help determine what specific job specifications to require for a particular job or assignment, such as education requirements. Used for training and development programs Three difference between traditional job analysis and competency modeling are Competency modeling focuses on KASOCs versus tasks or behaviors Competency modeling tends to be more qualitative Competency modeling tends to be future oriented and driven by the strategic plans of the organization Because the process is more qualitative, the inferential leap from competency to performing a job effectively can cause legal problems Core competency is a critical, underlying attribute necessary for successful performance Usually does not help determine what specific job specifications to require for a particular job or assignment, such as education requirements. Due to availability of related software, competency modeling is being used to evaluate the performance of managers. The problem with this is that it is difficult to distinguish between competencies and psychological traits such as spontaneity Boeing uses competency modeling to develop structured interviews and training and development, and during RIF Microsoft has used the models for career discussion U.S. Department of State uses the models to guide promotion panels Used for training and development programs. The Occupational Information Network (O*NET) (http://www.onetcenter.org/overview.html) A Department of Labor automated database for collecting, describing, and presenting reliable and valid occupational information Primary government source of information about occupations Uses ‘generalized work activities” i. Descriptors include tasks, behaviors, abilities, skills, knowledge, styles, and work content Content Model’s six domains (Figure 4-10 pg. 123) Experience Requirements Worker Requirements Worker Characteristics Occupational Characteristics Occupational Specific Requirements/machines, tools, equipment Occupational Requirements/General work activities 5. The most comprehensive data base for describing occupations and workers i. Useful for developing hiring procedures ii. Basic job descriptions can be retrieved iii. Occupational data (i.e. salary) iv. Great place to start for detailed job descriptions and job specifications F. Critical Incident Technique (CIT) Qualitative approach to job analysis used to obtain specific, behavioral focused descriptions of work or other activities. Originally focused on training needs assessment and performance appraisal Four characteristics or CIT Be specific Focus on observable behaviors Describe the context in which the behavior occurred Indicate the consequences of the behavior 3. Requirements of a well-written critical incident report It must be sufficiently detailed There should be no mention of traits There should be no judgmental inferences 4. Uses of the CIT Applicable to a variety of jobs (e.g., airline pilots, dentists, etc.) To develop performance appraisal systems To develop customer satisfaction instruments G. Personality-Based Job Analysis 1. Popular in making hiring and promotional decisions 2. Agreement that personality characteristics can be predictors of job performance, and that the Five-Factor Model is most useful 3. The Five Factors include i. emotional stability ii. extroversion/introversion iii. openness to experience iv. agreeableness v. conscientiousness 4. The results do not serve as a “substitute for a user’s professional judgment” as to the suitability of an individual for a job Fleishman Job-Analysis Survey (F-JAS) System for describing jobs and tasks in terms of abilities, skills, knowledge and social-interpersonal attributes One of the most thoroughly researched formal JA methods Links characteristics of job and tasks to requirements people need to perform those jobs and tasks An individual’s attributes profile can be compared to the requirements of a job Pro’s of this method web-based system cost effective link results to tests easy to use instant scoring and interpretation I. Job Compatibility Questionnaire (JCQ) Gathers broad information on factors of work related to performance, absenteeism, turnover, and job satisfaction JCQ theory is that the greater the compatibility in preferences for particular job characteristics, they will be more effective and have longer job tenure 200 items that incumbents complete Incumbent responses are used to develop the profile of the job Incumbents indicate the extent to which a JCQ item is descriptive of the job using a 5 point scale Useful for Predicting retention/turnover for low wage jobs redesign jobs choosing selection tools prediction of retention of low wage job correlation with turnover, and job performance a) Tenneco found responses indicated strong preference for a pay for performance system, and a more stable work schedule. These characteristics were changed and turnover was reduced by 14% J. Work Analysis for Job Design Reflects an orientation towards creating or changing the manner in which work gets done Requires a thorough understanding of how jobs relate to one another/organizational structure Enriching jobs through more meaningful work, greater responsibility, and greater work autonomy to increase motivation and job satisfaction The Job Characteristics Model states motivation¸ satisfaction, lower absenteeism and turnover is possible if workers: Believe their work is meaningful. Have responsibility for their outcomes. Receive feedback on their results. Job Diagnostic Survey (JDS) used to measure work characteristics Much criticism of the JDS and the Job Characteristics Model Work Design Questionnaire (WDQ) is superior method Used to study the relationship between work design variables and important work outcomes such as job satisfaction Figure 4-14 (p 131) lists the 18 work characteristics from the WDQ Most effective predictor of job satisfaction: autonomy and social support What is Strategic Job Analysis? Intended to forecast what a job may be like in a new environment with new strategic goals, new technologies, increased customer contact, or expanded duties Steps to conducting a strategic job analysis Job analysis or subject matter experts (SMEs) and customers describe job based on strategic plan and standardize description. Incumbents or SMEs discuss how changes such as new technology affect the job Detailed description and KASOCs are generated including expected changes New analysis compared to current to note differences. Comparison provides information relevant to developing performance standards, training content, KASOCs, etc. Requires widespread involvement to increase probability of predicting changes. Should include a variety of functional areas, customers, and technologists Autonomous Work Groups (AWG) or Self-Managing Teams Employees with a high degree of decision making responsibility and control Leadership, external to the team, act as facilitators rather than supervisors Teams may be involved in setting team goals, resolving internal conflict, and making task assignment Application of Job Characteristics Model To be effective, training is critical The effectiveness of AWGs or Self-Managing Work Teams is mixed. Team members and managers need to be patient. It can take up to 2 years to see positive effects Use of AWG’s can lead to higher job satisfaction V. Rating Source Matters: Potential Biases in Work Analysis Data A. The rating source, the purpose for the data, and type of ratings will impact results and accuracy of data B. Incumbents assign more importance to their jobs than supervisors and trained analysts C. External job analysis experts are the best source of unbiased data D. Incumbents maybe the best source of information E. Because work analysis methods involve human judgment, the results are subject to bias F. Best to have large number of experts from a variety of sources, (customers, clients, incumbents, managers) rating KASOCs and job specifications VI. How Do You Choose the Best Job Analysis Method?
Best Method(s)
Job description PAQ O*NET
Job Design PAQ WDQ
Job Classification PAQ, O*NET
Job Evaluation PAQ, O*NET
Selection Tests PAQ, JCQ
Performance Appraisal CIT
Job Related Interviews CIT
Training Program CIT, O*NET
Legal Compliance No Method ideal
Job Specification Use Own Data to validate If available
A. Multiple methods of data should be used whenever feasible B. O*NET has a wealth of information to accomplish most of major purposes C. Organizations should use their own data whenever possible to determine whether particular job specifications are correlated with critical criteria Summary A. Work analysis is one of the most important competencies and tools of HR professionals B. Work analysis identifies differences among jobs to identify selection methods that are linked to job success C. Work analysis helps to ensure that HR systems will be professionally sound, and legally defensible D. Comprehensive and multiple source/ method data collection produce the most effective deliverables E. Work analysis facilitates group performance through the clear definition of responsibilities and tasks, and an understanding of working relationships CHAPTER 4 - IMPORTANT TERMS Ability refers to a demonstrated competence to perform an observable behavior or a behavior that results in an observable product. Autonomous Work Groups are self managing work teams that are given a high degree of decision-making responsibility and behavioral control for completing their work. Competency is an “underlying characteristic of a person which results in effective and/or superior performance on the job” Competency Modeling provides “underlying characteristic of a person which results in effective and/or superior performance on the job” or as a “cluster of related knowledge, skills and attitudes that affects a major part of one’s job (a role or responsibility), that correlates with performance on the job, that can be measured against well-accepted standards.” Competency Modeling is more focused on how objectives are accomplished rather than what is accomplished. Core Competency- is judged to be a critical and underlying attribute related to successful performance Critical Incident Technique (CIT)- is a qualitative approach for obtaining specific, behaviorally focused descriptions of work or other activities. DOT- is the Dictionary of Occupational Titles. Essential Functions- Critical parts of jobs identified pursuant to ADA. Fleishman Job Analysis Survey (F-JAS) a system for describing jobs and tasks in terms of the ability, skills, knowledge and social-interpersonal attributes required for the job. Job Characteristics Model- Developed by J. R. Hackman and G. R. Oldham as a popular job enrichment model and process. The model posits that the psychological dimension of the job (meaningful work, responsibility for outcomes, feedback on results) can be measured through skill variety, task identity, task significance, autonomy and feedback from job. Job Compatibility Questionnaire (JCQ) - gathers information on all characteristics of job to derive test for determining job compatibility. Scores on the JCQ are correlated with job tenure for low wage jobs. Job descriptions- Describes the job in terms of its content and scope. Includes information on job duties and responsibilities, an identification of critical internal and external customers, equipment to be used on the job, working conditions, relationships with coworkers, and the extent of supervision required Job Diagnostic Survey (JDS) - is an instrument designed to measure the five key elements of the Job Characteristic Model. Job Enrichment- efforts provide more meaningful work, greater responsibility, and greater worker autonomy Job design- deals with the allocation and arrangement of organizational work activities and tasks Job specifications- Consists of the KASOCs needed to carry out the job tasks and duties. May include specific educational requirements or years of experience KASOCs- are critical knowledge, abilities, skills, and other characteristics necessary to perform the work or job tasks. Knowledge- refers to an organized body of information, usually of a factual or procedural nature applied directly to the performance of a function. Management Position Description Questionnaire (MDPQ) - is a standardized job analysis instrument for management jobs. Occupational Information Network (O*NET) - provides automated database for collecting describing and presenting reliable and valid occupational information (http://online.onetcenter.org/) Organizational Structure- is the network of relationships or the connections among the various jobs of an organization. Other personal characteristics- include various personality characteristics, attitudes, or physical or mental competencies needed to perform the job. Performance appraisal- describes how well individuals do their jobs. Person or worker oriented methods- collects information based on KASOCs or behaviors to perform the tasks satisfactorily. Personality-based Job Analysis- based on the idea that personality is an important predictor of job performance. It uses the Five-factor Model of personality. Position Analysis Questionnaire (PAQ) - standardized questionnaire that assess activities using 187 items in six categories. PAQ analysis identifies specific selection tests. Quantitative methods- provide descriptions in numeric form (PAQ, MPDQ). Qualitative methods- are narrative, non-numerical (CIT). Skill- is a competence to perform a learned, psychomotor act, and may include a manual, verbal, or mental manipulation of data, people or things. Strategic Job Analysis- forecasts what a job may be like in a new environment with new strategic goals, new technologies, increased customer contact or expanded duties. Task or Job Oriented Methods- indicate the tasks or duties required to perform a job. Trait-oriented methods- focus on latent traits (mental physical of personality) that a person has in order to perform to get specific results. Work analysis- is the systematic process of gathering information about work, jobs, and the relationship between jobs. Work Design Questionnaire (WDQ) - expands the knowledge of work design; studies the relationship between work design variables and important work outcomes. LEGAL CASES Griggs v. Duke Power Company and Albemarle Paper Co. v. Moody - Emphasized importance of demonstrating job relatedness of employee selection systems. Job analysis may be necessary to establish job relatedness. Americans with Disabilities Act (ADA) - Specifies that employers must make "reasonable accommodations" that would allow qualified people with disabilities to perform a given job. Job analysis may be necessary to establish essential functions of the job. Taylor v. James River Corporation- The PAQ can used to establish “job relatedness” CHAPTER 5 HUMAN RESOURCE PLANNING AND RECRUITMENT Objectives. After reading this chapter, you should be able to Understand the importance of human resource planning (HRP) to the organization. Identify the six steps in the HRP process. Explain the methods by which an organization can develop forecasts of anticipated personnel demand and understand labor markets. Understand how an organization can stay apprised of and evaluate its personnel supply and, if necessary, implement a downsizing program. Determine which recruitment methods are best for given situations, including the role of the E-recruiting. Understand the pros and cons of internal versus external recruiting. Know the most important features of recruitment strategy. Know the legal implications of recruitment and planning. CHAPTER 5- SUMMARY I. Overview A. HR should be an integral part of the strategic planning process B. HR planning (HRP) should be an integral part of creating competitive strategy C. One important element of HRP today is the consideration of outsourcing to reduce costs D. Employers’ goals are to keep labor costs low while meeting (or exceeding) customer demands E. Two of the most important aspects of staffing HRM planning: forecasting HR needs in the context of strategic business planning. Recruitment: Process of attracting applicants for the positions needed HRM activities are interdependent. For instance changes in compensation will have an impact on recruitment. Data driven decisions with regard to HRP will increase effectiveness II. Effective Human Resource Planning Step One: Environmental Scanning 1. External and internal environmental scans identify sources of SWOT and reduce ambiguity Proactively turn a potential threat into an opportunity Frame of reference for scanning should always be on strategic goals with customer focus Be aware of legislation affecting your industry WARN- provides protection to workers by requiring employers to give at least 60 day advance notice of covered plant closings and layoffs 2. Understanding the Labor Market a) Number and types of available candidates Whether the market is loose (abundant recruits) or tight The relevant labor market is defined by Occupation Geography Employer competition “Acqhiring” hiring top talent through the acquisition of start-ups to ‘hire’ the engineers who work at the start-up The Global Labor Market Technology and communications is revolutionizing the relationship between geography and labor supply (e.g., Indian call enters) Skilled labor is being off-shored to lower-paid, overseas workers (e.g.. IT, analysis, tax preparation) See Figure 5-3 for most attractive countries (India is #1). Technology has made workers from all over the world accessible to US firms, resulting in Lower labor costs Greater profits Offshoring of US jobs Stagnation of middle-class wages Labor costs can be 80% of operating expenses. Managing labor costs is important to the ability to compete on price/cost Greatest growth in future offshoring will be for services requiring higher skill levels. No effective mechanisms for gauging true economic gains from outsourcing Companies lose customers due to quality issues Loss of good employees and institutional knowledge due to downsizing takes a toll Greatest outsourcing risks: Increased managerial complexity Reduced operational effectiveness Failure rate is high (51% dissatisfaction in one study) Lower quality output 4. Affirmative Action/Diversity Programs and the Law: A Problem, Threat or Opportunity? a) Government regulation considerations i) Requires companies to pay close attention to decision making with regard to protected classes ii) Executive Order 11246 – requires Federal contractors and subcontractors to take affirmation action to ensure all individuals have an equal opportunity for employment iii) Civil Rights Acts Section 706(G) – allows a judge to order an affirmation action program in the event illegal discrimination is present b) Hiring to promote a diverse workforce (see Figure 5-5) i) Complicated because of confusing state of EEO case law ii) Safest to actively recruit females and minorities for the qualified pool of candidates, and then ignore the race and gender of the individuals iii) Despite legal confusion regarding EEO, organizations are continuing their efforts to promote diversity in their workforces (70% of Fortune 500 companies consider race in hiring decisions) B. Step Two: Labor Demand Forecast; derived from a projection of how business needs will affect HR 1. Qualitative Methods. a) Centralized approaches i) Examines current business situation and determines staffing requirements for the rest of the firm ii) Simple but inaccurate b) Decentralized approaches. i) Each unit or functional manager subjectively derives his/her own staffing needs. ii) Aggregated to create an overall composite forecast for the organization iii) The preferred approach c) Formalized problem-solving methods i) Delphi ii) Nominal group technique 2. Quantitative Methods a. Trend analysis. i) Incorporates certain business factors and a productivity ratio ii) Six steps (see pg 150) iii) Use of the appropriate factors is critical to success b. Regression analysis i) Uses information from the past relationship between the organizations employment level and some important success criterion known to be related to employment. ii) Influenced by the learning curve iii) Possible to forecast demand under various scenarios c. Quantitative methods improve accuracy by incorporating operational constraints C. Step Three: Labor Supply Forecast 1. Internal Supply a) Consists of the individuals and jobs currently in the firm. i) HRIS systems provide data to make projections into the future based on current trends ii) Data from skills inventories are used source internal candidates, control cost, aid employee morale iii) Succession planning and replacement charts identify qualified internal candidates iv) Markov analysis more complicated and is used for long-range forecasts in large firms b) Electronic databases come with inherent privacy and security concerns External Supply The skills needed determine the relevant labor market The labor market will drive the choice of recruitment strategy Immigration Reform and Control Act (IRCA) of 1986 requires that every U.S. employer verify the an employees authorization to work in the US Regardless of penalties, use of illegals is rampant in some US industries. Companies use illegals to compete on price Savings in hourly wage, workers’ compensation, social security, and other benefits. E-Verify is available to determine work eligibility. Free, internet based program run by the Federal government. Employers with federal contracts must use E-Verify In Chamber of Commerce v. Whiting the Supreme Court supported state law sanctioning employers for knowingly hiring illegal workers, and requiring employers to use E-Verify Criminal prosecutions more common against workers and employers Several legal immigration options for US employers: H-1B visas for highly skilled workers (tight legal limit) L-1 Intra-company Transferee classifications, controversial D. Step Four: Gap Analysis 1. Used to reconcile the forecasts of labor demand and supply 2. Decision making process: a) Search for alternative solutions b) Evaluate alternatives c) Choose solution Is There an Optimal Way to Downsize? a) Effective reengineering can improve competitive advantage through restructuring, overhead reduction and more effective performance management with constant focus on the core competencies of the company and the current and/or future customer base b) Downsizing needs to be done with a customer focus c) Strategic planning can minimize downsizing threat d) Virtue in stability e) Enhancing the effective of restructuring & downsizing (Figure 5-9 p 155) f) Outplacement may reduce threat of legal action 4. What Are Some Alternative or Additional Solutions? Brainstorming or a qualitative approach can identify alternatives Some of the factors to consider are How does each job relate to the strategic plan Are there alternative to a full-time job that can accomplish the same objectives Projected costs of each job What impact will job have on critical and clearly defined effectiveness criteria 5. What Is the Role of Temporary Employment? a) Growth rate of 30% b) Employee leasing can save costs but employers have less control c) Permanent part-time employees can save costs and may help retain and recruit capable people d) Independent contractors i) Considerable cost savings is possible by classifying workers as independent contractors - low wages and no benefits for some jobs ii) 4 critical questions determine if an employee should be classified as a contractor: control or work and benefits, contracts, and continuation of the relationship e) Internships typically involve the hiring of college students, either paid, or unpaid. 60% of internships result in a job offer 6. What is Job Sharing? a) Divides a single job into two or more workers. b) Success of the arrangement depends on a good partnership 7. Telecommuting Alternative work arrangement allowing workers to work at home or in some other location other than the employer’s physical premises Technology allows work to be done from almost anywhere Strong evidence of effectiveness and efficiency Companies are able to attract and retain effective workers with considerable cost savings 8. Is There a Conflict between Downsizing and Diversity Goals? a) Evaluate past performance or even potential performance without even considering a protected class characteristic b) Avoid preferential treatment in downsizing c) Test for adverse impact and evaluate job-relatedness E. Step Five: Action Programming 1. Plans out a sequence of events to be executed 2. There are two aspects of programming: a) Internal Programming i) The HRP solutions for actions inside the firm ii) Training, career planning, promotions, compensation design iii) Consider changes to organizational design b) External Programming i) Solutions that are related to constituencies in the environment ii) Necessary when plans require drastically different competences from what employees currently possess and or the time frame for change is quite short F. Step Six: Control and Evaluation 1. Monitor HRP programs over time 2. Deviations from a plan are identified and actions are taken 3. Extent of objectives met identified by feedback resulting from the outcomes such as performance or productivity data III. The Recruitment Function: Putting HRP into Action Is demand is greater than supply. Moving from HRP to recruitment is essentially a process of translating broad strategies into operational tasks Conflict between HR and line managers occur when their priorities diverge, for example time to hire, versus quality of the hire Recruitment, Other HR Activities, & Organizational Attractiveness Recruitment and other HR Activities are interdependent Technology allows employers many more options for getting job done Geography is not the limiting factor with regard to knowledge-based, service work Manufacturing options more limited Manufacturing returning to the U.S- “reverse globalization” World wide wages are changing, minimum wage in China increased 32% since 2004 Difficulty of recruitment efforts determined by number of factors: Economy Supply and demand of KASOCss HR policies Organization’s reputation- “socially responsible” employers C. The Three Essential Steps for Recruitment Planning Work Analysis required to create accurate job descriptions, and job specifications Necessary to identify the critical skills needed for recruitment, as well as determine outsourcing, job sharing, etc. Directly affects the effectiveness of any recruiting and planning effort Can determine where the work can be done for maximum efficiency Critical for web-based recruiting to reduce number of unqualified candidates Time-Lapse Data (TLD) Average time that elapses between points of decision-making in recruiting Automated recruiting has reduced some organizations TLD Yield Ratios Ratio of applicants to hires at each step in the selection process Used as the basis for evaluating recruitment sources and options Can estimate the number of applicants will be necessary to fill a certain number of positions Used as the basis for planning future recruitment efforts Few companies collect data needed for evaluation of TLD and yield ratios The Two Source of Recruiting Internal and External Advantages and Disadvantages of Internal and External Recruitment Internal recruiting is one component of high-performance work practice (HPWP) Succession Planning reduces turnover No solid research supporting the idea that internal recruitment stifles creativity Possible problems with internal recruitment: escalation bias, Unit raiding, politics, and peter principle Job posting system enhances the effectiveness of internal recruiting Figure 5-11 p 164 Recruitment Advantages Disadvantages Internal Better assessment of candidates Creates vacancies Reduces training time Stifles diversity Faster Insufficient supply of candidates Cheaper Motivates employees External Increases diversity Expensive Facilitates growth Slower Can save training time Less valid data New/novel problem solving Stifles upward movement of personnel External Recruitment Sources 1. Seek employees from outside the firm. 2. What Methods Are Available for External Recruiting? a) Walk-ins/Unsolicited Applicant Files-linked to company’s reputation. Software matching job specs with resumes increases effective use of this source of candidates b) Referrals from current employees, family and friends– increase job tenure, decrease voluntary turnover. EEOC v. Edison: need to be aware of diversity of candidates sourced c) Advertising includes newspapers, TV, trade or professional journals. Ads on the web are now the norm. Need to ensure you provide relevant facts about the job for this to be effective d) Employment Agencies, both public and private e) Search firms, specialized firms for specific occupations. Research on effectiveness is mixed f) Campus Visits: this can be an expensive method, good source for interns 3. Electronic Recruiting on the World Wide Web Reduces costs and time, and results in large number of applicants Nearly 100% of Fortune 500 companies now post jobs on their websites Many general and specialty sites available Resumes can be turned into a virtual recruiter/selection system to help sort out and rank order job applicants The digital divide is a concern related to sourcing diverse candidates What Method of Recruiting Is Most Effective? Few studies have compared the effects of different methods A study found i) Largest sources of new employees: on line job boards, search firms, family & friend info, networking, career fairs, newspapers ii) 5 least helpful methods per job seekers: networking at social events, professional assoc ad, social networking sites, direct resumes, notice posted in a store. EEO definition of an applicant employer acts to fill a position person followed employer’s standard procedures for submitting application person indicated interest in particular position The Discrepancy between Research and Practice Few studies have compared recruitment methods Most companies do not know the best or the most cost effective recruitment method for long term and most effective employees Informal recruitment methods may lead to longer tenure than the more formal methods Recruiters are generally rewarded based on the quantity not quality of recruiting Attraction outcomes measure quality of applicant pool as function of recruitment source Recruitment success can be linked to characteristics of the recruiter, including interpersonal skills, knowledge of the organization, and enthusiasm for the organization, job and the candidate What Are the Effects of the Internet? Digital divide could decrease access to minority candidates Resume overload-too many unmotivated applicants Growing number of companies doing online applicant screening Online recruitment should be a supplement not a replacement to traditional methods On-line applications that include biographical information blanks that can be scored in a valid manner result in better decision making in staffing Two Philosophies of Recruiting: Flypaper versus Matching. Selection ratio. The proportion of job openings to applicants Lower SRs are better (low SRs for key positions is HPWP characteristic) Realistic Job Preview (RJPs) results in lower turnover, higher job satisfaction but reduction in the number of job acceptances. JCQ matches preferences and job characteristics Reduces turnover in high turnover jobs Use of selection methods such as RJPs and JCQs require larger applicant pool I. Understanding the Recruits 1. Best to rely on research such as that presented in Figure 5-18, p. 178, rather than the “hunches” of recruiters J. Human Resource Planning and Recruitment for Multinational Corporations The relationship between HRP and strategic planning for overseas ventures is weaker than for domestic ventures Efforts are being made to enhance the recruiting and success of expatriates Major challenges for overseas HRP a) Identifying managerial talent. b) Identifying criteria for success c) Motivating employees to take overseas assignments d) Establishing a stronger link between HRP and strategic plan Repatriation policies are not adequate to meet the needs of returning expatriates U.S. firms recruit and select from three sources a) Pool of U.S. candidates who would become expatriates b) Pool of candidates from the overseas country c) Candidates from all nationalities. Policy for selecting executives for overseas assignments i) Ethnocentrism- using only home country executives for assignments ii) Geocentric – hire the best regardless of nationality iii) Balance between expatriates and host or third country nationals IV. Summary HRP attempts to place the right employees in the right jobs at the right time at the lowest possible cost HRP improves ability to create and sustain competitive advantage and to cope with challenges arising from environmental change HRP forecasts personnel demand, assess supply, and reconciles the two Reengineering and downsizing programs need to be well managed Recruitment is finding and attracting applicants who are interested and qualified The evaluation of recruiting programs should focus on quality over quantity CHAPTER 5 - IMPORTANT TERMS Action programming - Final step of HRP model: takes adopted solution and lays out the sequence of events that need to be executed to realize the plan. “Acqhiring”- hiring top talent by buying start-ups to acquire the engineers who work there Centralized approach to projecting labor demand - HR department examines current business situation and determines staffing requirements for rest of firm. Computer modeling - uses mathematical formulas to help compute future resource needs. Decentralized approach to projecting labor demand - Each unit or functional manager subjectively derives his or her own staffing needs. Delphi technique - In the context of this chapter, experts take turns at presenting a forecast statement and assumptions for labor market forecasts. The experts make revisions independently and anonymously. An intermediary then pools and summarizes the judgments and gives them to the experts. This process is continued until a consensus forecast emerges or until the intermediary concludes that more than one perspective must be presented. E-Verify - A voluntary program in which employers can check workers names & work status against databases kept by the Social Security Administration and Department of Homeland Security. Environmental scanning - Helps planners identify and anticipate sources of SWOTs. Escalation bias- to irrationally stay committed to an initial course of action, particularly if you initiated the action Ethnocentrism - The policy of using only home-country executives for oversea assignments. External environment - Denoted by SWOTs arising outside the organization External supply - The external supply consists of individuals in the labor force that are potential recruits of the firm (including those working for other firms). Gap analysis - Reconciles forecasts of labor demand and supply. Geocentric - Policy of hiring the best person regardless of nationality for oversea assignments. H-1B Visa- allows employers to hire highly skilled or specialized foreign workers for temporary jobs in the United States High Performance Work Practices (HPWP) – a policy of internal recruiting is a component of HPWP Human resource planning - Assures that the right people in the right jobs at the right time and at the lowest possible cost HRIS- an electronic data base that serves as a repository of information on employees including competency or skill inventory Internal supply - Internal supply consists of individuals and jobs currently available within the firm. Job Sharing- two employees share the responsibilities, accountability and compensation of one full time job L-1 classification- allows foreign companies to transfer employees into the United States Labor market - what is available in qualified applicants. Loose vs. tight labor markets - In loose labor market, qualified recruits are abundant. Markov analysis- A transition model used by large companies to make long-term forecasts. It uses historical information from personnel movements of the internal labor supply to predict what will happen in the future. Nominal group technique - Similar to Delphi Technique, but differs in that experts join at a conference table and independently list their ideas in writing. The experts then share their ideas with the group in turn. As the ideas are presented, a master list of the ideas is compiled so that everyone can refer back to them. The ideas are discussed and ranked by member vote. Outplacement services - are used by some companies when downsizing. Outsourcing- is the relocation of a business process from one country to another. Peter Principle- states that we are promoted to our level of incompetence Personnel skills inventory - used to determine internal supply of candidates Realistic job previews - Present the characteristics of the job to applicants so that they can evaluate the compatibility of this realistic presentation of the job with their own work preferences. Recruitment- the process of attracting applicants for the positions needed Regression analysis- the statistical relationship using company’s historical data with company’s employment level Selection Ratio - the proportion of job openings to job applicants Strategy - A process through which the basic mission and objectives of the organization are set and a process through which the organization uses its resources to achieve its objectives. Telecommuting - Alternative work arrangement allowing employees to work at home or in some other location other than the employer’s physical premises Time-lapse data - average time it takes between decision points in recruiting. Trend analysis - Based on assumption that future is an extrapolation from the past...incorporates certain business factors (e.g., units produced, revenues, and a productivity ratio) and a productivity ratio. Workers Adjustment Retraining Notification Act - 1988 Act requires employers to give 60-day advance notice of plant closings and mass layoffs that result in employment losses. Yield ratios - The ratio of applicants to hires at each step in the selection process. Important Cases Chamber of Commerce v. Whiting - Federal law does not prevent Arizona from revoking the business licenses of state companies that knowingly hire undocumented workers, or from requiring employers in that state to use a federal electronic system to check that their workers are authorized to work in the United States. EEOC v. Detroit Edison – practice of relying on referrals by predominantly white workforce rather than seeking new employees in the marketplace for jobs was discriminatory. Executive Order 11246 – requires Federal contactors and subcontractors ($10,000 or more) to take affirmation action to ensue that all individuals have an equal opportunity for employments, without regard to race, color, religion, sex, national origin, disability, or status as a Vietnam era or special disabled veteran. Immigrations Reform and Control ACT (IRCA) of 1986 - requires the labor pool should be a legal pool. Section 706G of the Civil Rights Act – allows a judge to order an affirmative action program if the employer is found guilty of intentional discrimination. Worker Adjustment and Retraining Notification Act (WARN) - Provides protection to workers, their families and communities by requiring employers to give at least 60 days advance notice of covered plant closings and covered mass layoffs. Instructor Manual for Human Resource Management John H. Bernardin, Joyce E. A. Russell 9780078029165, 9780071326186
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