CH-4-6 Designing Productive and Satisfying Work – Human Resource Management: Linking Strategy to Practice : Chapter Notes

This Document Contains Chapters 4 to 6 Chapter 4 Designing Productive and Satisfying Work Chapter 4 Learning Objectives 1. Describe how the design of work tasks and roles can align with overall HR strategy. 2. Explain the steps in the process of job analysis. 3. Explain how to translate job analysis results into knowledge, skill, and ability lists that can be used to guide other HR practices. 4. Describe various approaches to job design, including the motivational, biological, mechanistic, and perceptual perspectives. 5. Identify practices that make jobs more compatible with family demands. Chapter 4 Outline 4.1 How Is Work Design Strategic? • Developing Autonomy  Autonomy concerns the extent to which individual workers are given the freedom and independence to plan and carry out work tasks.  Greater autonomy provides two potential benefits to organizations.  Information: Those closer to products and customers often able to make rapid changes if something in production process shifts or if customers’ needs vary.  Increased motivation. ° More autonomous employees are less likely to shirk their responsibilities. ° High-level managers with greater autonomy in both the United States and Europe report greater job satisfaction and less chance of leaving their current employer.  Problems ° High autonomy can create coordination problems. ° Employee with great deal of freedom to change work process might make changes that are troublesome when the work process is carefully planned in advance. • Developing Interdependence  Interdependence: extent individual’s actions and outcomes are influenced by others.  When interdependence is low, people work mostly by themselves.  Greater interdependence often corresponds with improved performance.  Sequential processing takes place when work tasks are organized in an assembly line.  Reciprocal interactions occur when people work together in a team without carefully prescribed plans for completing work tasks. • Linking Autonomy and Interdependence to HR Strategy  Efficiency is accomplished by combining low autonomy and sequential processing.  Bargain Laborer: Standardization and specialization.  Loyal Soldier: Sequential interdependence.  HR strategies focusing on innovation – new approaches create new products.  Free Agent: Experimentation and broad responsibilities.  Committed Expert: High autonomy and reciprocal interdependence. CONCEPT CHECK 1. What is autonomy and how does it influence work performance? Autonomy concerns the extent to which individual workers are given the freedom and independence to plan and carry out work tasks. Employees are more motivated and often able to make rapid changes if something in the production process shifts or if customers’ needs vary. 2. What are the different forms of interdependence? Sequential processing takes place when work tasks are organized in an assembly line. Reciprocal interactions occur when people work together in a team without carefully prescribed plans for completing work tasks. 3. How do autonomy and interdependence link to overall HR strategy? Bargain Laborer: Standardization and specialization; Loyal Soldier: Sequential interdependence; Free Agent: Experimentation and broad responsibilities; Committed Expert: High autonomy and reciprocal interdependence. 4.2 How Do Employees Know What They Are Supposed to Do? • The Job Analysis Process  The process of systematically collecting information about work tasks.  The process involves obtaining information from experts to determine:  Importance of job analysis  Knowing what tasks need to be completed helps managers select people with appropriate knowledge and skills.  Provides important information for planning training programs.  Helps guide decisions about pay.  Helps ensure that HR practices comply with legal guidelines.  Steps for good job analysis  Step 1: Getting Organized  Step 2: Choosing Jobs  Step 3: Reviewing Knowledge  Step 4: Selecting Job Agents  Step 5: Collecting Job Information  Step 6: Creating a Job Description  Step 7: Creating Job Specifications • Specific Methods of Collecting Job Analysis Information  Task Analysis Inventory  Job agents provide ratings concerning a large number of tasks. o Usually require responses for at least 100 different task statements. o Task statements usually begin with action verb that describes specific activity. o Most task analyses require job agents to rate: frequency and importance.  Yields information consistently across different raters at different times.  Seems to work best when job incumbents are relatively new to position, provide ratings of frequency and importance.  Fairly specific to a particular category of jobs.  Critical-Incidents Technique  Identifies good and bad on-the-job behaviors.  Job agents are asked to generate a number of statements that describe behaviors they consider particularly helpful or harmful for accomplishing work.  Statements are then analyzed to identify common themes.  Position Analysis Questionnaire (PAQ)  A specific questionnaire marketed by one company.  Structured questionnaire that assesses work behaviors required for job.  Collects information about characteristics people must have to do job well.  Includes 187 items that relate to job activities or the work environment. o These items assess characteristics along six dimensions:  Information input—where and how worker obtains needed information.  Mental processes—reasoning and decision-making activities.  Work output—physical actions and tools or devices used.  Relationships with other persons—interactions and social.  Job context—physical and social surroundings.  Other job characteristics—important activities, conditions, or characteristics not contained in other five dimensions. o Questions on the PAQ are rated on scales according to what is being measured. o Few items are simply rated as ‘‘does not apply’’ or ‘‘does apply.’’  Advantage is its usefulness across many different jobs.  Disadvantage is its lack of task information, which limits its usefulness for creating job descriptions or guiding performance appraisal practices. CONCEPT CHECK (Note: The following questions are found on page 135 of text.) 1. What are the seven steps involved in job analysis? Getting Organized, Choosing Jobs, Reviewing Knowledge, Selecting Job Agents, Collecting Job Information, Creating a Job Description, and Creating Job Specifications. 2. What are major differences between task analysis inventories, the critical-incidents technique, and the Position Analysis Questionnaire? Task Analysis Inventory: Job agents respond to at least 100 different task statements. Task statements usually begin with action verb and require job agents to provide at least two ratings for each task statement: frequency or time spent and importance. Critical-Incidents Technique: Job agents are asked to generate a number of statements that describe behaviors they consider particularly helpful or harmful for accomplishing work. Position Analysis Questionnaire (PAQ): A specific questionnaire marketed by one company. Structured questionnaire that assesses work behaviors required for job and collects information about characteristics people must have to do job well. Includes 187 items that relate to job activities or the work environment. 3. These items assess characteristics along six dimensions: Information input, Mental processes, Work output, Relationships with other persons, Job context, and Other job characteristics (important activities, conditions, or characteristics not contained in other five dimensions). Questions rated on scales according to what is being measured. 4.3 Translating Job Descriptions into Job Specifications • The result of most job analysis techniques is a list of duties.  This information must then be translated into job specifications, which are required for purposes such as employee selection.  Translation into job specifications is usually done by job agents highly familiar with the job and what it takes to perform it well.  Job specifications provide a foundation for many other HR practices.  Managers can use the list of worker characteristics as a ‘‘shopping list’’ when they begin identifying the type of workers they want to hire.  Carefully prepared job specifications guide selection practices so that appropriate tests identify who has desirable characteristics.  Areas in which employees lack necessary skills can be established as training priorities. • Job Analysis and Legal Issues  Practices grounded in good analysis are most likely to result in good decisions about how to hire, evaluate, and pay employees.  Legal considerations are good for job analysis.  Help many organizations determine whether they are complying with requirements of the Americans with Disabilities Act (ADA).  Court decisions have confirmed importance of using good job analysis procedures. • Competency Modeling  Describes jobs in terms of competencies – characteristics and capabilities people need in order to succeed at work.  Competencies include both ‘‘can-do’’ and ‘‘will-do’’ characteristics.  Typical steps for competency modeling  Step 1: Determine Data Collection Method  Step 2: Collect Data  Step 3: Direct Observation of Incumbents  Step 4: Develop an Interim Model  Step 5: Test the Interim Model  Step 6: Validate the Model  Goals  Seek to develop links between work activities and organizational strategy.  Tailor solutions to purposes and uses. ° Analysis that will be used for compensation decisions may be different from one used for determining type of job candidate to recruit. ° Competencies tend to be somewhat broader and less specifically defined than the activities assessed in job analysis.  Typical competencies might include skill in presenting speeches, ability to follow through on commitments and proficiency  Competencies can be rated in terms of current importance, future importance, and frequency.  Job analysis v. competency modeling  Competency modeling is more likely to link work analysis procedures and outcomes to business goals and strategies.  Competency modeling procedures are often not documented as clearly as job analysis procedures and may be less rigorous.  Research concluded that combined approach is better than either approach alone. CONCEPT CHECK 1. What can an organization do to make sure its job analysis procedures comply with legal guidelines? Analysis results should be in writing, method used to analyze the job should be clearly described, expert job analysts should collect data from several up-to-date sources, data should be collected from enough people to be sure the results are accurate, and tasks, duties, and activities must be identified and included in the job analysis. 2. How is competency modeling different from job analysis? One area of difference is that competency modeling tends to link a broader set of characteristics to work success. 4.4 How Do We Determine the Tasks Associated with Each Job? • Job analysis: provides information about who does what, but not how the tasks were combined into jobs in the first place. • Job design  Focuses on determining what tasks will be grouped together to form employee jobs.  Important when companies are first created and when opening new plants or stores.  Important for existing companies that are looking to improve. • Job redesign  Decide which tasks will be grouped together to define job duties of job position.  Existing companies use job redesign to reorganize tasks so that jobs are changed. • Work Design Methods  Main objective of any work design method is to separate and combine work tasks in the ways that make the most sense.  Depends on the overall objective of the organization.  Driven by strategic choices.  Mechanistic Approach  Engineers apply concepts from science and mathematics to design efficient methods for creating goods and services. ° Approach job design from the perspective of creating an efficient machine that transforms labor inputs into goods and services. ° Use principles of scientific management to create jobs that eliminate wasted effort so that organizations can produce goods and services quickly.  Basic goal of mechanistic approach is to simplify work tasks. ° Reduce worker autonomy and create sequential processing. ° Use analyses designed to find the work methods that take the least time. ° Tasks are automated and each job is highly specialized.  Loyal Soldier or Bargain Laborer HR strategies emphasize mechanistic approach. ° Everyone is taught the most efficient methods for completing standardized tasks. ° Helps reduce costs and creates value to customers.  Motivational Approach  Aimed at increasing employees’ enjoyment of work, increasing their effort. ° Organizational psychology emphasizes designing work to fulfill needs of workers. ° Seeks to design work so that it is complex and challenging.  Job characteristics model focuses on building intrinsic motivation. ° Intrinsic motivation exists when employees do work because they enjoy it, not necessarily because they receive pay and other rewards. ° Workers are intrinsically motivated when perceive work to have: • Meaningfulness.  Able to use many different skills.  Their inputs lead to the completion of a specific service or product.  They see tasks as having an important impact on other people. • Responsibility: have autonomy and freedom to make decisions. • Knowledge of results: receive feedback about effectiveness of work.  Perceptual Approach  Job designers using this approach group tasks together in ways that help workers to process information better.  Basic objective is to simplify mental demands on workers and decrease errors.  Most commonly found in Loyal Soldier or Bargain Laborer HR strategies.  Biological Approach  Emphasize the physical stresses and demands placed on workers. ° Ergonomics – methods of designing work to prevent physical injury. ° Task demands are assessed in terms of strength, endurance, and joint stress. ° Work processes designed to eliminate movements that can lead to physical injury or excessive fatigue. ° Workers taught principles regarding good posture and excessive wrist movement.  Basic goal is to eliminate discomfort and injury.  Guides work design specialists so assembly-line processes do not harm workers.  Helps organizations with Bargain Laborer or Loyal Soldier HR strategies.  Combining Work Design Approaches  Research found trade-offs between the motivational and mechanistic approaches. ° Motivational approach increases job satisfaction; may result in reduced efficiency. ° Mechanistic approach improves efficiency; job satisfaction may decline.  Jobs can be designed simultaneously from mechanistic and motivational approaches. ° Combining both sets of principles leads to jobs that are efficient and satisfying. ° In many instances, primary consideration will be either efficiency or motivation. ° Strategic objectives of organization should drive work design. • Mechanistic approach is most relevant for cost strategies. • Motivational approach provides guidance for differentiation strategy. CONCEPT CHECK 1. What are four different approaches to designing jobs in organizations? Mechanistic, Motivational, Perceptual, and Biological. 2. How does the mechanistic approach differ from the motivational approach? Mechanistic approach involves engineers applying concepts from science and mathematics to design efficient methods for creating goods and services. Use principles of scientific management to create jobs that eliminate wasted effort so that organizations can produce goods and services quickly. Motivational approach is aimed at increasing employees’ enjoyment of work, increasing their effort. Seeks to design work so that it is complex, challenging, and intrinsically satisfying. 4.5 How Can Work Be Designed to Improve Family Life? • One area of increasing importance for job design is conflict between work and family.  Stress encountered at home or work can result in work-to-family conflict.  Causes  Psychological effort required to cope in one area takes away from resources needed to cope in the other.  Structuring work in ways that help decrease conflict between work and family roles. ° Appears to translate into higher organizational performance. ° Firms perform better when they incorporate family-friendly policies and procedures. • Flextime provides freedom to decide when to arrive at and leave work.  Problems  Difficult to coordinate with coworkers on different schedules.  Supervision can be problem if no supervisor is present.  Benefits  Higher productivity  Increased satisfaction among workers  Lower absenteeism  Less turnover • Compressed Workweek enables employees to have full-time positions but work fewer than five days a week – typically four 10-hour days. • Alternative Work Locations  Many organizations allow employees to work at locations other than company facilities.  Researchers evaluating telework suggest how to improve its effectiveness.  Use care in choosing the employees who are allowed to do telework.  Should be limited to jobs where most appropriate (e.g., word processing, web design).  These jobs have clear performance objectives and methods for measuring outputs.  Telework is consistent with motivational approach to job design. CONCEPT CHECK 1. How do flextime and compressed work weeks make organizations more family friendly? Flextime provides freedom to decide when employees arrive at and leave work. Compressed Workweek enables employees to have full-time positions but work fewer than five days a week – typically four 10-hour days. 2. What are advantages and disadvantages of allowing employees to complete their work tasks at alternative locations? Advantages include substantial autonomy, employees work independently to complete meaningful tasks, appropriate for differentiators. Disadvantages include difficult to supervise, organizations cannot focus on work processes, and requires clear goals and performance measures (which may be difficult to establish). Chapter 4 Teaching Notes The following presents suggestions designed to help you utilize the special features and cases found in Human Resource Management: Linking Strategy to Practice. Concept Checks Answers to each of the four sets of Concept Checks are presented at the appropriate points in the chapter outline. The pre- and post-quiz questions also address the Concept Checks. Tables and Figures The table and figures presented in the chapter help illustrate the concepts of the chapter. They should be brought to the attention of the students and, perhaps, included in the exams. A Manager’s Perspective, What do you think?, And A Manager’s Perspective Revisited The chapter starts with a short scenario where Steve (supervisor) is thinking about how to improve the work process of his teams. Five true/false questions related to this scenario and the chapter topics are noted on page 117 and answered on page 145. Discussion of the chapter could start by posing these questions and asking for the class to vote on which questions are true through a show of hands, thumbs-up/thumbs-down, clickers, or paper copies of the questions. To keep student interest, the methods for identifying true answers should be varied. The activity could be repeated near the end of the chapter discussion. At that time, students could be asked if they agree with the answers. The students also could be asked to identify what additional questions Steve should ask. During the discussion of the chapter material, you could refer to the questions noting that a certain section or discussion point addresses one or more of the questions. For some chapters, you may wish to address the questions at the end of discussing the chapter. In this case, you may want to bring the students’ attention to these questions, informing the students that they will be asked to answer the questions near the end of the chapter discussion. At that time, students (individually or in groups) could be asked to explain why the answers are true or false. Students also could add questions to the list and briefly explain why they think a new question should be asked. This could be done as a class or in smaller groups. If done in smaller groups, each group could be asked to briefly report on an aspect of their discussion. Of course, one or more of the questions or more detailed versions of the questions could be included in an exam. If included in an exam, students should be warned that these questions might be part of the exam. Building Strength through HR: W.L. Gore & Associates This special feature (page 120) highlights several issues noted in this opening case regarding W.L. Gore and Associates (refer to pages 118-19). This case illustrates how strategic work design can benefit a differentiator. The inset box (refer to page 120) presents some of the HR practices mentioned in the case but not all. Therefore, you could ask the students what else they might do to facilitate the teamwork and motivation (e.g., telecommute, compressed work week). You may want to explore what the students think about everyone being called “associate.” Students could discuss the benefits and risks involved and if that truly would work for everyone. You could have the students comment on the question posed by the authors: Would this evolutionary process be successful elsewhere? The authors state that few other organizations appear willing to try this process, inferring that this technique might not fit other organizations. What do the students think? For what industries, types of employees and managers, strategies, etc. might this approach work? A student could be asked/assigned to report on additional information found on the W.L. Gore website (http://www.gore.com/en_xx/). In particular, brief information is found by accessing “About us” and “corporate culture.” The above discussion could be accomplished through guided class or group discussion or briefly mentioned in a mini-lecture to show relevance of the chapter topics. Additional ways to address the opening cases could include individual students or teams of students presenting the main points and how the case answers the opening question of that section. These opening cases also could be used as topics for a more comprehensive assignment due later in the term. How Do We Know? Do People Work Best in Groups or as Individuals? This inset box (on page 122) is briefly mentioned in the chapter. Most students have experience in group work whether through school or work. Therefore, you could ask who of the students has experience in the three types of groups (i.e., low-interdependence, high-interdependence, and hybrid-interdependence). For each type of group in which the students have experience, you could ask what worked, what went wrong, and for them to speculate as to the reasons for what went right and wrong. Ask the students if their collective experiences (and the discussion) verify what is discussed in the inset box. Other ways to address this information could be through a short written assignment or a more in-depth research paper on the topic. Building Strength Through HR: Purolator As noted on page 126 of this chapter, this inset box (refer to page 125) illustrates how Purolator uses job analysis to determine the physical demands of job tasks and match job demands to the capabilities of workers. You could briefly mention this inset as an example of how job analysis provides Purolator with information about jobs that injured workers can do while they are recovering. Because this is the main focus of this inset box, students could be asked how job analysis could help reduce injuries from occurring in the first place. Students could explain how the mechanistic, motivational, biological, and perceptual approaches could help. You also could ask them what other methods Purolator could use to encourage safety and reduced injuries on the job. How Do We Know? What Happens When Employees Burn Out? The inset box on page 136 summarizes two studies investigating emotional exhaustion, organizational commitment, and intent to quit. The researchers conclude that employees who are burned out are less committed to the organization, which leads to lower job performance and stronger intentions to quit. You could ask the students to define burn out and what aspects of a job can stress people to the point of burn out. They could suggest how job design/analysis might reduce the changes of job-related burn out. You could use the PAQ categories as a guide for this discussion adding legal issues (e.g., discrimination). You also could have students discuss if everyone in the same job burns out at the same time and why or why not. The information reported in the inset box could be part of a lecture or class or group discussion. If you organize the discussion into the PAQ categories (and legal), groups of students could discuss different categories and report out at the end of ten or more minutes of discussion. A web-based activity is described at the end of this chapter in the Instructors’ Manual. Building Strength Through HR: Leicester Royal Infirmary As noted prior to the inset box (refer to page 138), Leicester effectively applies the mechanistic approach to work design. You could briefly mention how they streamlined their processes, reduced patient waiting times, and improved patient satisfaction. If you want to spend more time on this approach, you could ask the students to list what the infirmary had done and why those methods were effective. Students also could be asked how nurses benefited and if these outcomes are important when considering the mechanistic approach. You may want to ask the students if the methods used to plan the changes in work design (e.g., involving nurses, clinical teams) influence the success of the changes in work design. You may want to have the students discuss whether this approach to change is typical of the mechanistic approach. Building Strength Through HR: International Business Machines Corporation As noted prior to the inset box (refer to page 142), IBM is an example of organizations that try to minimize work-family conflict. In a mini-lecture, you could bring students’ attention to this inset box and encourage them to consider if they would value these programs. Of course, you could ask the students to list what is offered by IBM and why these programs might reduce work-family conflict. You and the students also could explore the reasons why IBM and other organizations might go to all of this trouble to reduce work-family conflict. Technology in HR: Allowing Employees to Work from Home This inset box (refer to page 144) describes how telework is fundamental to the success of many of today’s organizations. Some benefits and obstacles to allowing employees to work from home also are presented. The brief information presented in this box could be referred to during a lecture. Students can be asked for their experiences with working from home (e.g., what went well and what made it difficult for employee and/or managers to manage). If nobody has experience, students could be asked what types of jobs, employees, and organizations might allow this work option. You and the students also could address the risks involved in telework and how those risks could be reduced. You may want to personalize the topic more by asking the students if they would want (or not want) a teleworking job. The topics in this box could provide topics to be researched by students. KEY TERMS Autonomy Competencies Competency modeling Compressed workweek Critical-incidents technique Differentiation Ergonomics Family-to-work conflict Flextime Integration Interdependence Job Job analysis Job analysis interview Job analysis observation Job analysis questionnaire Job characteristics model Job description Job design Job redesign Job specifications Occupational Information Network Position Analysis Questionnaire (PAQ) Reciprocal processing Scientific management Sequential processing Task analysis inventory Telework Work design Work-to-family conflict Chapter 5 Recruiting Talented Employees Chapter 5 Learning Objectives 1. Explain how overall HR strategy guides recruiting practices. 2. Describe the key elements of HR planning. 3. Explain important characteristics and search patterns of different types of people looking for jobs. 4. Describe the characteristics of organizations that attract recruits. 5. List various recruiting sources and be able to describe their strengths and weaknesses, as well as their linkage with strategic recruiting practices. 6. Explain various approaches for evaluating the effectiveness of recruiting. Chapter 5 Outline 5.1 How Is Employee Recruiting Strategic? • Recruiting: process of getting people to apply for work with specific organization. • Broad Versus Targeted Skill Scope  Broad Scope  Focuses on attracting a large number of applicants.  Most often used by organizations with cost leadership strategies.  Optimal for organizations with internal and external forms of cost strategy.  Targeted Scope  Represents a set of skills that only a few people have.  Most often pursued by differentiators.  Skill Scope and Geography  Broad skill scope recruiting can be done in small geographic areas near where new employees will work.  Targeted recruiting frequently covers wide geographic areas. • Internal Versus External Sourcing  Internal Sourcing  Seeks to fill job openings with current employees. ° The risks associated with internal recruiting are relatively low. ° Fundamental part of Loyal Soldier and Committed Expert HR strategies.  Expatriates ° Many organizations use internal sourcing to identify people who can fill international assignments. ° Expatriates move to a foreign country to take a work assignment.  External Sourcing  Seeks to fill job openings with people from outside the organization.  Essential part of recruiting practices for Bargain Laborer or Free Agent HR strategies.  Realistic Messaging  Sharing positive information and information about problems and weaknesses. ° Used to increase likelihood that employees will stay with organization. ° Realistic job previews share complete picture of working for organization.  Goal is to help new recruits develop accurate expectations about organization.  HR strategies: Appropriate for Loyal Soldier or Committed Expert HR strategies.  Idealistic Messaging  Excludes negative information and paints positive picture of organization.  Not effective for building a long-term relationship.  HR strategies: Bargain Laborer and Free Agent HR strategies. CONCEPT CHECK 1. How does broad scope recruiting differ from narrow scope recruiting? Broad scope focuses on attracting a large number of applicants, most often used with cost leadership strategies, and can be done in small geographic areas near where new employees will work. Targeted Scope focuses on a set of skills that only a few people have, most often pursued by differentiators, and frequently covers wide geographic areas. 2. Why would an organization tell job applicants negative information about the position? Helps new recruits develop accurate expectations about organization and reduces turnover. 5.2 How Does HR Planning Facilitate Recruiting? • Fail to take advantage of available talent when begin recruiting only after job is vacant. • The Planning Process  The process of forecasting employment needs.  Basic steps of HR planning ° Step 1: Assess Current Employee Levels ° Step 2: Predict Future Needs ° Step 3: Predict Employee Movement ° Step 4: Plan External Hiring Needs  Information and strategies developed through HR planning process are only estimates and usually not totally accurate. • Batch and Flow Approaches  Batch approach  Recruiting activities that bring new employees into the organization in groups.  Helpful for tracking career development and training that may be needed.  Reduce average time positions are open from 60 to 35 days.  Flow approach  Sustained recruiting activities to meet ongoing need for new employees.  New employees frequently added even before specific openings.  Continually seeks top recruits and brings them onboard when they are available. • Centralization of Processes  HR department is responsible for recruiting activities.  Benefits  Cost savings.  Recruiting done by members of HR department.  HR professionals develop relationships with other businesses (e.g., newspapers).  Problems  Increases distance between new recruits and people with whom they will work.  Managers blame HR department when new recruits don’t become good employees. CONCEPT CHECK 1. What are the basic steps in human resource planning? Assess current employee levels, predict future needs, predict employee movement, and plan external hiring needs. 2. How do the batch and flow approaches to recruiting differ? The batch approach includes recruiting activities that bring new employees into the organization in groups; whereas the flow approach involves continually seeking top recruits and brings them onboard when they are available. 3. What benefits and problems are associated with centralization of employee recruiting? Benefits include reduced costs, recruiting is done by members of HR department who are experienced in recruiting techniques, and HR professionals develop relationships with other businesses (e.g., newspapers advertising departments). Problems include increased distance between new recruits and people with whom they will work and managers might blame HR department when new recruits don’t become good employees. 5.3 Who Searches for Jobs? • New Workforce Entrants  Most people enter full-time workforce when they graduate from high school or college.  Job search activities of new workforce entrants typically follow a sequence.  Stage One: intense, broad search of formal sources of information about opportunities.  Stage Two: focused on explicit information about small number of possibilities. • Unemployed Workers  Research shows importance of social support.  Are more successful when take proactive approach, set goals, and actively look for jobs.  Helping individuals regain sense of self-worth and confidence can communicate interest and caring.  Organizations with a Bargain Laborer HR strategy may benefit. • Workers Currently Employed  People who search for alternative jobs while employed tend to be intelligent, agreeable, open to new experiences, and less prone to worry.  Dissatisfaction with current job is important reason for leaving current job.  Organizations can increase success in recruiting people already employed by other firms.  Direct recruiting efforts to those who recently experienced negative work changes.  Recruiters should help potential employees to form positive attitudes about a new job by clearly communicating that organization provides superior work environment.  Recruiters can take steps to minimize hassle of changing jobs.  Talent wars.  Occur when competitors ‘‘poach,’’ or steal, employees from one another.  Back-and-forth negative tactics often are dysfunctional for both organizations. CONCEPT CHECK 1. What are three types of jobseekers and how does each type differ from the others? New Workforce Entrants: Most people enter full-time workforce when they graduate from high school or college. Typically go through two stages: (1) intense, broad search of formal sources of information about opportunities, and (2) focus on explicit information about small number of possibilities. Unemployed Workers: They get depressed easily. They experience decreased mental and physical health, less life satisfaction, and increased marital and family problems. They are more successful when take proactive approach, set goals, and actively look for jobs. Workers Currently Employed: People who search for alternative jobs while employed tend to be intelligent, agreeable, open to new experiences, and less prone to worry. Dissatisfaction with current job is important reason for leaving current job. 2. What can an organization do to attract new workforce entrants? Because people entering the workforce search broadly in the beginning, organizations can benefit from finding ways to share positive messages that set them apart from other potential employers. The objective is to build positive impressions that influence attitudes and thereby guide future goals and actions. Normal marketing channels such as television and newspaper advertisements are helpful in this way. Organizations seeking to recruit should provide methods of sharing informal information with people who have entered the second stage of the search process. In this second stage, potential employees benefit from contact with current employees, who can share information that helps them decide whether a specific job is right. 5.4 What Characteristics Make an Organization Attractive? • Generally Attractive Characteristics  Job applicants often base choices on characteristics such as familiarity, compensation, certain organizational traits, and recruiting activities.  Familiarity  Most prefer searching for jobs in companies that are somewhat familiar. ° Much of this familiarity comes from corporate advertising. ° Familiar firms have better reputations because people remember positive things. ° People respond to recruiting efforts by companies with strong reputations. ° Job seekers more likely to obtain additional information about these organizations and make formal job applications.  Image enhancing activities ° Familiar organizations don’t benefit much from image-enhancing activities because people already have a generally positive image of familiar organizations, and such activities are not necessary. ° Less well-known organizations can benefit from sponsorships, advertising, etc.  Compensation and Similar Job Features  Compensation affects people’s attitudes about an organization.  People want to work for organizations that pay more.  People prefer pay to be based primarily on their own work outcomes.  Most people prefer organizations that offer better and more flexible benefits.  Most people prefer greater opportunities for advancement and job security.  Organizational Traits  Organizations have certain traits that make them more desirable employers. ° Friendliness, sincerity, kindness, trust and family-like atmosphere. ° Innovativeness. ° Competence (i.e., people want to work for successful organization).  Recruiting Activities  Obtain endorsements from people.  Recruiters’ interpersonal skill influences attitudes about organization.  Long delays tend to decrease organizational attractiveness. • Fit Between People and Organizations  Studies suggest that people with different characteristics are likely to be attracted to different types of organizations.  Some prefer to work for large firms, while others prefer small firms.  Some people care more about money than others. ° People with high need to achieve prefer pay to be based on performance. ° Individuals who have high confidence prefer to work in organizations that base rewards on individual rather than group performance.  Men more likely to be attracted to innovative and decisive organizations.  Women tend to prefer detail-oriented organizations.  People like organizations whose characteristics are similar to their own. ° Conscientious people seek to work in organizations that are outcome oriented. ° Agreeable people like organizations that are supportive and team-oriented. ° People characterized by openness to experience prefer innovative organizations.  Same desire for similarity is found in the realm of values. ° People who value fairness seek out organizations seen as fair. ° People with high concern for others prefer organizations that show concern. ° People who value high achievement prefer a place with an air of success. CONCEPT CHECK 1. What characteristics make some organizations more attractive workplaces than others? Job applicants often base their choices on characteristics such as familiarity, compensation, certain organizational traits, and recruiting activities. Organizations also have certain traits that make them more desirable employers: friendliness, sincerity, kindness, trust, family-like atmosphere, innovativeness, and competence. 2. What are some ways that organizations differ? What type of person prefers which type of organization? Some prefer to work for large firms, while others prefer small firms. People with high need to achieve prefer pay to be based on performance. Individuals who have high confidence prefer to work in organizations that base rewards on individual rather than group performance. Men are more likely to be attracted to innovative and decisive organizations whereas women tend to prefer detail-oriented organizations. People also like organizations whose characteristics and values are similar to their own. 5.5 What Are Common Recruiting Sources? • Job Posting  Internal recruiting is normally done through job posting.  Uses company communication channels to share information about job vacancies with current employees.  Effective job posting clearly describes nature of job duties and needed qualifications.  Job posting is most appropriate when adopting internal recruiting strategies.  For Loyal Soldier HR strategy, job postings should be shared with a large number of people to facilitate movement among a variety of positions.  For Committed Expert HR strategy, posting should be targeted specifically to those who have expertise needed to move into relatively specialized roles. • Employee Referrals  Current employees get friends and acquaintances to apply for positions.  All organizations and job seekers rely on referrals to some extent.  In many organizations, about one-third of new employees are referred.  Majority of HR professionals believe employee referrals are most effective method.  Referrals are thought to have at least four primary strengths: ° Represent a relatively inexpensive method of recruiting. ° Quicker than many other forms of recruiting. ° People hired through referrals tend to become better employees who are less likely to leave the organization. ° Employees become more committed to firm when successfully refer someone.  Informal nature of referrals makes effective method for identifying best candidates.  Current employees generally have accurate, first-hand knowledge of the potential applicant’s skills and motivation. Information can improve hiring decisions.  Feelings of responsibility make it likely that employees will refer people they think will succeed; they don’t want to refer someone who will make them look bad.  Informal information that employees share with people they have referred serves as realistic job preview.  Referrals are effective for organizations pursuing any HR strategy. • Print Advertising  Employment advertisements are a major part of almost all newspapers.  Newspaper advertising can reach large number of people for relatively low cost.  Newspaper advertising works well for broad recruiting associated with Bargain Laborer HR strategy.  General advertising in newspapers can help build positive reputation for organization.  Focused recruiting messages can be placed in more specialized publications.  Openings in technical fields can be advertised in trade journals.  This more focused approach helps reduce the costs associated with sending recruiting messages to people who are obviously unsuitable for the job.  Advertising in specialized journals is potentially most helpful for organizations that pursue Free Agent HR strategy.  Print advertising has decreased in recent years, with many of the advertisements now appearing online. • Electronic Advertising  Electronic advertising uses modern technology to send recruiting messages.  Popular Web sites, such as Monster.com and Careerbuilder.com, include thousands of job postings that can be sorted in a variety of ways.  Job seekers can post their resumes online.  Most large companies have a career Web site. ° Relatively inexpensive. ° Controlled to provide information that conveys clear recruiting message.  Effectiveness  Some are very basic and provide only a list of job openings.  More advanced web sites include search engines for locating particular types of jobs and sending e-mail messages notifying when certain types of jobs appear.  Most sites have information about work environment, benefits, and diversity.  Advantages ° Decreased cost. ° Faster than most other forms of recruiting. ° Information can be changed and updated easily. ° Identification of better job candidates. ° Almost guarantees job candidates are familiar with modern technology.  Disadvantages ° Yields a large number of applicants who are not qualified for advertised jobs. ° Computer screening could eliminate applicants who could do job. • Employment Agencies  Public Agencies  Each state in U.S. has public employment agency which is government bureau that helps match job seekers with employers. ° Local offices normally post information about local jobs on bulletin boards. ° Provide testing and other services. ° Many offices help employers screen job applicants. ° Maintain websites for recruiting and linked with America’s Job Bank website.  Help people transition from unemployment.  Focus on helping young people move from high school into workforce.  Almost all services free to both organizations and job seekers.  Most helpful for companies engaged in broad skill recruiting.  Private employment agency  Professional recruiting firm that helps organizations identify recruits for specific job positions for a fee.  Executive recruiters are known for efforts to develop and maintain broad networks of people not actively seeking new jobs but might be willing to move.  Private agencies target people who have the specific skills for the job.  Makes search process more efficient.  Helpful for Free Agent HR strategy. • Campus Recruiting  Campus recruiting usually involves a number of activities.  Organizations work to build strong reputation among students, faculty, and alumni.  Relationships built through talks to student organizations and job fairs.  Most widely recognized aspect of campus recruiting is job posting and interviewing.  Internships represent major component of most campus recruiting programs.  Give students opportunity to gain important work experience.  Students who were interns take less time to find first position, receive higher pay, and generally have greater job satisfaction.  Internships help organizations develop relationships with potential recruits.  Provides realistic preview of job which helps individual and organization to determine whether there is a good fit.  Campus recruiting is well suited for Committed Expert HR strategy CONCEPT CHECK 1. What are different sources that organizations can use to find job applicants? Sources include job postings, employee referrals, print and electronic advertising, public and private advertising, and campus recruiting. 2. What are some advantages & disadvantages of using electronic communication to recruit employees? Advantages: Decreased cost, faster than most other forms of recruiting, information can be changed and updated easily, identification of better job candidates, and responding through electronic means almost guarantees some level of familiarity with modern technology. Disadvantages: Tendency to yield a large number of applicants who are not qualified for the advertised jobs and could eliminate some applicants who could actually do the job. 5.6 How Is Recruiting Effectiveness Determined? • Organizations use recruiting as tool for ensuring they have best possible employees. • Effective recruiting is essential part of good HRM. • Common Measures  Common measures of recruiting effectiveness include assessments. ° Costs include advertising fees, agency fees, referral bonuses, travel expenses.  Time ° During this period, position and important tasks are not done. ° Performance of other employees suffers because they spend time on activities that new employee would perform if position were filled. ° Important objective of recruiting is to fill positions as quickly as possible.  Quantity ° Number of applicants or hires generated through recruiting activities. ° Measures include number of inquiries, job applicants, and job acceptances.  Quality ° Extent to which recruiting activities locate and gain interest of people capable of performing the job. ° Measuring quality may be more important than quantity. ° Typical measures • assessments of how many applicants are qualified for the job. • measures of turnover and performance of the people hired.  Most frequently used measures of recruiting success combine cost and quantity.  Cost per hire – divide total cost of particular search by number of hires provided.  Cost per applicant – divide cost of method by number of responses. ° Assess the relative value of different methods of recruiting. ° Are efficiency measures.  More advanced methods of evaluation. ° Assessments of quality. ° Proportion of interviewees who were offered a job. ° Proportion who accepted a job if it was offered.  Quality measures do better job of determining whether right kinds of people are being identified through recruiting. • Differences Among Recruiting Sources  Some methods considered better than others at attracting different people.  Some methods may provide better information about job and organization.  Research does not support idea that some methods are superior to others.  Methods are more appropriate in various situations.  Recruiting practices most successful when aligned with organization’s HR strategy.  Bargain Laborer HR strategy identifies large number of job candidates.  Loyal Soldier HR strategy recruits those who fit culture and will stay for long time.  Committed Expert HR strategy recruits people with specialized skills who will stay long.  Free Agent HR strategy seeks employees with specialized skills. CONCEPT CHECK 1. How can an organization assess the effectiveness of recruiting sources? Common measures of recruiting effectiveness include assessments of cost, time, quantity, and quality. 2. Why might using the least expensive recruiting sources actually cost an organization money? Reasons include that least expensive sources might not attract qualified candidates or be aligned with the HR strategy. Chapter 5 Teaching Notes The following presents suggestions designed to help you utilize the special features and cases found in Human Resource Management: Linking Strategy to Practice. Concept Checks Answers to each of the four sets of Concept Checks are presented at the appropriate points in the chapter outline. The pre- and post-quiz questions also address the Concept Checks. Tables and Figures The table and figures presented in the chapter help illustrate the concepts of the chapter. They should be brought to the attention of the students and, perhaps, included in the exams. A Manager’s Perspective, What do you think?, And A Manager’s Perspective Revisited The chapter starts with Susan thinking about recruiting. She remembers the process through which she was recruited and why she decided on this organization. She wants to learn more about recruiting employees so that she can contribute to her team that will recommend better ways to recruit new employees. Five true/false questions related to this scenario and the chapter topics are noted on page 155 and answered on page 186. Discussion of the chapter could start by posing these questions and asking for the class to vote on which questions are true through a show of hands, thumbs-up/thumbs-down, clickers, or paper copies of the questions. To keep student interest, the methods for identifying true answers should be varied. The activity could be repeated near the end of the chapter discussion. At that time, students could be asked if they agree with the answers. The students also could be asked to identify what additional questions Susan should ask. During the discussion of the chapter material, you could refer to the questions noting that a certain section or discussion point addresses one or more of the questions. For some chapters, you may wish to address the questions at the end of discussing the chapter. In this case, you may want to bring the students’ attention to these questions, informing the students that they will be asked to answer the questions near the end of the chapter discussion. At that time, students (individually or in groups) could be asked to explain why the answers are true or false. Students also could add questions to the list and briefly explain why they think a new question should be asked. This could be done as a class or in smaller groups. If done in smaller groups, each group could be asked to briefly report on an aspect of their discussion. Of course, one or more of the questions or more detailed versions of the questions could be included in an exam. If included in an exam, students should be warned that these questions might be part of the exam. Building Strength through HR: McDonald’s This special feature (page 157) highlights several issues noted in this opening case regarding McDonald’s (refer to pages 156-8). This case describes how McDonald’s engages in strategic recruiting. The inset box (refer to page 157) presents some of the recruiting practices noted in the case but not all. Therefore, you could ask the students what other recruiting practices appeared to contribute to McDonald’s recruiting success (e.g., offers flexible work schedules, important bonuses to employees, constantly communicating with potential employees, employees receive bonuses for referrals). Most students will be familiar with McDonald’s and can comment on what comprises the family-like atmosphere that helps make McDonald’s an attractive place to work. Some may have applied for a job with McDonald’s (or know some one who has) and some may have worked for them. They all can comment on what types of workers McDonald’s attracts. Furthermore, they can discuss other things McDonald’s does to attract the type of employees they need to be successful. This discussion could be supplemented with information found on McDonald’s webpage: www.mcdonalds.com/ If internet access is available in the classroom, you may want to access McDonald’s webpage at www.mcdonalds.com/ during class to further illustrate how they try to attract future employees. (This would be especially motivational for the students if you have assigned the website activity found at the end of this Instructor’s Manual chapter.) The website is colorful and the “Work @ McDonald’s” link has informative links including success stories, job openings, Hamburger University (training), company history, social responsibility, and diversity. There are also job descriptions for openings, interviewing tips, and other helpful advice provided through the links. Job descriptions are not listed for all jobs, but most states have job descriptions for Restaurant Manager. One or more students could review this website prior to class and mention a few other aspects that help McDonald’s recruit. You should inform the students of any school policies that address contacting organizations. A web-based activity regarding recruiting-related aspects of McDonald’s website is described at the end of this chapter in the Instructors’ Manual. How Do We Know? Do Realistic Job Previews Reduce Employee Turnover? This inset box (on page 163) is briefly mentioned before the box. Several researchers conducted a study to learn whether realistic job previews reduce the likelihood that nurses will quit a job. As described in the inset box, the findings of their studies revealed that nurses who received a realistic preview were less likely to quit than those who received the traditional brochure (9% vs. 21%, respectively). They also found that the realistic preview worked because it indicated the organization was honest and was concerned for the nurses. The class could be encouraged to read the details in the inset box. During the lecture or class discussion of the chapter, the study and conclusions could be summarized. This could be accomplished through your lecture (asking for student input) or by assigning the box to an individual student. You or the student could lead a brief class discussion after presenting the facts. Regardless of who presents the information, the students could discuss how one could prepare a realistic job preview for nurses or some other job. Guide the students to address who should be involved, what should be included, how should it be done, and what should be the result or medium (book, video, verbal, etc.). The students also could discuss whether realistic job previews are appropriate for all types of jobs, organizations, industries, etc. (For example, a formal form is more appropriate for more complex jobs and informal forms such as a conversation are appropriate for small businesses.) Students could be asked if realistic previews presented in written or video form are more effective than more informal methods (e.g., conversation). Other ways to address this information could be through a short written assignment or a more in-depth research paper on the topic. Building Strength Through HR: WellPoint Health Network As noted on page 166 of this chapter, this inset box (refer to page 167) illustrates how WellPoint builds competitive strength through their database of employee skills and abilities, filling job openings internally, and predicting future job vacancies. You could ask if anyone has experience with a database. Most students will not have experience but may be aware of their use. You could ask the following questions: what types of information should be included for the database to be useful and what should not be included for legal and ethical purposes; can too much information be included; how can the information be gathered; and who should have access to the database and why. How Do We Know? What Influences Job Searching for Employed Managers? The research findings reported in this inset box (found on page 172) indicate that managers look for new jobs when they are dissatisfied with their current jobs. You could ask if the students agree with this conclusion and if this would be the most important reason for the students to quit a job. You also could ask whether this reason would also be the most important reason for non-supervisory employees. If not, what might be more popular reasons? The students could discuss why it might be important to know why people are likely to leave a job and what an organization might do to keep high performing employees and managers. Finally, the students could discuss if all turnover is dysfunctional and for which HR strategies is turnover an expected part of the strategy. How Do We Know? What Influences People to Apply for a Job? This inset box (on page 175) is briefly mentioned before the box. Christopher Collins and Cynthia Stevens asked 133 students graduating with engineering degrees about organizations’ recruiting activities. They concluded that publicity, word of mouth, and advertising were positively related to attitudes about an organization. Those organizations that used all three activities had a stronger impact on potential job candidates. The class could be encouraged to read the details in the inset box. During the lecture or class discussion of the chapter, basic information about the study and conclusions could be summarized. This could be accomplished through your lecture (asking for student input) or by assigning the box to an individual student. You or the student could lead a brief class discussion after presenting the facts. Regardless of who presents the information, the students could be asked the following questions: (1) what types of information should be included in these techniques? (2) what medium should be used for each technique to be effective for graduating college students? (3) would these three techniques be effective for all types of job seekers or only for new workforce entrants? (4) might these results also be relevant to non-engineering graduates (say new business graduates)? (5) what other methods or messages might be useful to attract other types of job searchers (and is it important to attract a variety of job searchers)? and (6) what can small businesses and lesser known businesses do to attract quality new college graduates and other job searchers if these techniques are too costly? Technology in HR: Staying in Touch with Recruits This inset box (refer to page 179) briefly addresses how two organizations (i.e., Shell Oil and the New York City Police Department) effectively use e-mail during recruiting. The brief information presented in this box could be mentioned during a mini-lecture encouraging students to read the information on their own. You may want to address some of the issues in more detail. For example, is e-mail the most effective way to keep in touch with all potential job candidates, what are other ways to keep in touch with potential job applicants, and how would an organization determine what is appropriate content for such communications? You could address the measures mentioned in the box by asking the students whether the percent of people who open the newsletter (i.e., Shell Oil) and visits to the NYPD website are appropriate measures of effectiveness and what might be (additional) ways to measure the effectiveness of these methods? The topics in this box could provide topics to be researched by students. KEY TERMS Batch approach Broad skill scope Contingent workers Cost measures Cost per applicant Cost per hire Electronic advertising Employee recruiting External sourcing Flow approach Human resource planning Idealistic messaging Independent contractors Internal sourcing Job posting Private employment agency Public employment agency Quality measures Quantity measures Realistic job preview Realistic messaging Talent wars Targeted skill scope Temporary workers Time measures Chapter 6 Selecting Employees who Fit Chapter 6 Learning Objectives 1. How employee selection practices can strategically align with overall HR strategy. 2. What makes a selection method good, and be able to apply the concepts of reliability, validity, utility, legality and fairness, and acceptability to appropriately evaluate different employee selection methods. 3. Describe several commonly used selection methods, evaluate their strengths and weaknesses, and explain how they link with particular employee selection strategies. 4. Explain how to combine scores from several different selection methods to arrive at a final selection decision. Chapter 6 Outline 6.1 How can strategic employee selection improve an organization? • Employee selection is the process of choosing people to bring into an organization. • Effective selection provides many benefits in that it can improve effectiveness of other human resource practices, reduce disciplinary problems, and diminish costs related to replacing employees 6.2 How is employee selection strategic? When it ensures the right people are in the right places at the right times • HR strategies vary by internal or external labor orientation and compete through cost or differentiation • Aligning talent and HR strategy  Four general categories:  Short-term generalists: hired to produce general labor inputs for short time period  Long-term generalists: hired to perform a variety of jobs over long time period  Long-term specialists: hired to develop specific expertise and establish a lengthy career within organization  Short-term specialists: hired to provide specific labor inputs for short time period  Another way to examine how organizations make employee selection decisions focuses on two primary factors which balance between Job- vs. Organization-based fit and Achievement vs. Potential. • Matching an employee’s characteristics to the general culture of the organization.  Bargain Laborer HR strategies: seek short-term generalists and neither form nor fit  Loyal Soldier HR strategy: seek long-term generalists and require organization fit  Committed Expert HR strategy: seek long-term specialists require both job- and organization-based fit  Free Agent HR Strategy: seek short-term specialists and require job fit • Balancing achievement and potential  Achievement emphasizes existing skills and past accomplishments  Potential emphasizes broad characteristics that foreshadow capability to develop future knowledge and skill; critical for organizations with long-term staffing strategies  Bargain Laborer HR Strategies seek short-term generalists and hire for potential  Committed Expert HR Strategy focuses on assessing potential to become highly skilled in a particular area.  Free Agent HR Strategies focus on achievement in similar positions • Gaining competitive advantage from alignment  Organizations with closer alignment between their overall HR strategies and specific selection practices tend to be more effective.  A key for effective staffing is to balance job fit and organization fit, as well as achievement and potential, in ways that align staffing practices with HR strategy. 6.3 What makes a selection method good? • Reliability is the degree to which a selection method yields consistent results.  Test-retest method compares scores on a single test obtained at different times.  Alternate-forms method compares scores on different versions.  Split-halves method compares scores on two parts of a selection assessment.  Inter-rater method compares assessment scores provided by different raters.  All four methods rely on correlation coefficient.  Correlation coefficients range from a low of 0 to a high of 1 which indicates a perfect relationship; Correlation coefficients can be negative  Good rule of thumb is that a correlation coefficient of .85 or higher suggests adequate reliability for test-retest, alternate-forms, and split-halves estimates.  Interrater reliability estimates are often lower because they incorporate subjective judgment  The first question to ask about any selection procedure is whether it is reliable.  Information about reliability should be available from vendors  Validity: does test accurately predict who will perform the job well?  Once reliability has been established, turn to a selection method’s validity.  Content validation strategy - process of estimating validity that uses expert raters to determine if a test assesses skills needed to perform a certain job  Criterion-related validation strategy - process of estimating validity that uses a correlation coefficient to determine whether scores on tests predict job performance  Predictive validation strategy - form of criterion-related validity estimation in which selection assessments are obtained from applicants before they are hired.  Concurrent validation strategy - form of criterion-related validity estimation in which selection assessments are obtained from people who are already employees  Neither predictive nor concurrent strategy is optimal in all conditions;  Validity coefficients are lower than reliability coefficients.  Generalizability  Situational specificity: evidence of validity in one setting does not support validity in other settings.  Validity generalization: evidence of validity in one setting can be evidence of validity in other settings. • Utility addresses the method’s cost effectiveness. All other things being equal, selection methods with higher validity also have higher utility.  Can generate more money when hiring procedures improve for jobs filled frequently.  Higher when people remain in their jobs for long periods of time.  Increases when a smaller proportion of applicants are hired.  Increases when there is a lot of variation in how well people do the job.  Increases when both fixed and variable costs are low.  Decreases when test is given to many people and the cost for each test given is high.  Estimates are more likely to be accepted by managers when they are presented in a less complex manner and framed as opportunity costs. • Legality and fairness  Fairness goes beyond legality and includes an assessment of potential bias or discrimination associated with a given selection method.  The number of people who are unfairly eliminated decreases as validity increases, meaning that more valid tests are usually more fair. • Acceptability concerns how applicants perceive the technique.  Applicants see selection methods as indicators of an organization’s culture; can influence decisions to join firm and subsequent feelings of job satisfaction and commitment.  Perceptions of fairness differ among countries.  Evidence that applicants react more positively to a particular assessment when they believe they will do well on it. 6.4 Commonly used selection methods • Testing  Cognitive ability testing assesses a person’s capability to learn and solve problems.  Research suggests that general mental ability, which is represented by a summation of the specific measures, is the best predictor of performance in work contexts.  High reliability; predict performance across jobs and across cultures  Validity is higher for cognitive ability tests than for any other selection methods; results in substantial utility when combined with relatively low cost  High validity generalization  A concern is that people from different racial groups score differently  Because of their strong link with job performance, cognitive tests can be used legally in most settings.  Beneficial for organizations seeking long-term generalists and specialists.  Acceptability: managers see cognitive ability as one of the most important predictors of work performance.  Utility: Cognitive ability tests are good, inexpensive predictors of job performance.  Personality testing assesses traits that show consistency in behavior  Personality testing measures patterns of thought, emotion, and behavior and personality testing is now seen as a relatively effective method of selection.  Agreeableness is important for interpersonal relationships and corresponds with high performance in teams and service jobs with frequent interaction with customers.  Conscientiousness: Conscientious employees set goals and work hard to accomplish tasks, tend to be absent from work less frequently; exhibits validity generalization.  Emotional stability does not relate as strongly to performance as conscientiousness; captures aspects of motivation and demonstrates validity generalization.  Extraversion corresponds with a desire to get ahead and receive rewards; useful predictor for performance in sales and leadership positions.  Openness to experience is seldom related to performance; recent research suggests it can increase performance in jobs requiring creativity and adaptation to change.  The five personality dimensions can be accurately measured in numerous languages and cultures, making the tests useful for global firms. Patterns of relationships with work performance are similar across national boundaries.  Physical ability testing assesses muscular strength, cardiovascular endurance, and coordination.  These tests are useful for predicting performance in many manual labor positions and in jobs that require physical strength.  Physical ability tests can be particularly important in relation to the Americans with Disabilities Act.  Physical ability tests have high reliability.  Validity and utility are high for positions that require physical inputs, such as police officer, firefighter, utility repair operator, and construction worker.  Validity generalization is supported for positions where job analysis has shown work requirements to be physically demanding.  As long as job analysis has identified need for physical inputs, physical ability testing presents few legal problems except they demonstrate adverse impact for gender.  Integrity testing assesses the likelihood that applicants will be dishonest or engage in illegal activity.  Two types of integrity tests: overt and covert  Assessment uses  Likelihood that an individual will be dishonest  Useful for organizations seeking short-term generalists  Predict counterproductive behavior and absenteeism and overall performance  Research evidence generally supports the reliability and validity of integrity tests.  Integrity tests show no adverse impact for minorities and provide relatively inexpensive screening method.  Drug testing  Drug testing normally requires urine sample that is tested for illegal substances  Testing is quite common in the United States (8% of workforce use illegal drugs)  Illegal drug use linked to absenteeism, accidents, and likelihood of quitting  Reliable and valid  Administration costs can be high; basic tests are modestly priced (moderate utility)  Drug testing can be useful for firms that hire most types of talent.  Work sample testing assesses performance on tasks that represent specific job actions.  In most cases, these tests have excellent reliability and validity, are relatively inexpensive, and involve few legal problems.  Assessment center - work sample test for the complex job of manager that includes multiple measures obtained from multiple applicants across multiple days  Assessment centers have good reliability and validity.  Validity improves when evaluators are trained and exercises are specifically tailored to fit relevant job activities; can be very expensive.  Most common in organizations with long-term staffing strategies, particularly those seeking specialists. • Information gathering  Application forms and resumes – required for many entry-level jobs  Frequently used as early screening devices because generally inexpensive.  In terms of legality and fairness, measures of education and experience have some adverse impact.  Biographical data - focus on previous events and experiences in an applicant’s life  Questions address historical events that have shaped a person’s behavior and identity.  Objective scoring methods improve the reliability and validity of biodata (adequate reliability and good validity but validity generalization is questionable).  Some human resource specialists express concern about legality and fairness issues.  Biodata measures can benefit organizations whatever their staffing strategies.  Reference checking - contact applicant’s previous employers, teachers, or friends  One of the most common selection methods, but may not be generally valid.  Legal issues of defamation of character and negligent hiring make reference checking particularly troublesome and affect validity.  Interviewing - most frequently used selection method  Validity varies for different types of interviews.  Determine whether people ‘‘fit’’ with the job, workgroup, or organization.  Time spent interviewing can be costly and interviews can be discriminatory.  Using structured interviews  Incorporates multiple raters, common questions, and standardized evaluation  Situational questions address what applicant would do in a hypothetical situation  Behavioral questions focus on past behavior 6.5 How are final selection decisions made? • Predictor weighting: multiplying scores on selection assessments by different values to give more important means greater weight • Minimum cutoffs approach the process of eliminating applicants who do not achieve an acceptable score on each selection assessment.  In practice, many organizations use minimum cutoffs to identify a pool of people who meet at least the minimum requirements in a number of areas.  Once this pool of people is identified, then weighted predictors are used to make the final hiring decision. • Multiple hurdles approach: only allow those who achieve minimum score on any one test to take next assessment; can increase utility of the overall process • Banding approach: process of treating people as doing equally well when they have similar scores on selection test; can help meet affirmative action goals; could have decreased utility Teaching Notes The following presents suggestions designed to help you utilize the special features and cases found in Human Resource Management: Linking Strategy to Practice. Concept Checks Answers to each of the four sets of Concept Checks are presented at the appropriate points in the chapter outline. The pre- and post-quiz questions also address the Concept Checks. Tables and Figures The table and figures presented in the chapter help illustrate the concepts of the chapter. They should be brought to the attention of the students and, perhaps, included in the exams. A Manager’s Perspective: What do you think? And A Manager’s Perspective Revisited The chapter starts with a short scenario where Javier has been authorized to hire a new member for his customer service team. Five true/false questions are asked on page 197 and answered on page 231. Discussion of the chapter could start by posing these questions and asking for the class to vote on which questions are true through a show of hands, thumbs-up/thumbs-down, clickers, or paper copies of the questions. The instructor could refer to the questions during the discussion of the chapter material noting that a certain section or discussion point addresses one or more of the questions. The activity could be repeated near the end of the chapter discussion. At that time, students could be asked if they agree with the answers. The students also could be asked to identify what additional questions should Javier ask. Of course, one or more of the questions could be included in an exam. If included in an exam, students should be warned that these questions might be part of the exam. Building Strength through HR This special feature (page 198-200) highlights several issues noted in this opening case regarding The Home Depot, Inc. This case provides an excellent opportunity to illustrate the strategic nature of Home Depot’s selection decisions. This activity could be a written assignment or accomplished through in-class groups. Although the latter is described below, the written paper would address the same concepts. Refer the students to the short list of main issues found in the inset box on page 199. In groups, students address strategic issues by identifying Home Depot’s mission (or main purpose), categorizing case information into a SWOT, explaining how Home Depot resolved main issues (i.e., weaknesses and threats) and capitalized on strengths and opportunities, and identifying current, continuing challenges. The students could speculate on how Home Depot might address these challenges by applying concepts from the chapter. If class time does not allow in-class discussions of the strategic aspects of the case, various students or teams of students could present the main points and how the case answers the opening question: How Can Strategic Employee Selection Improve an Organization? More directly, one or more students could select or be assigned to tell the class how The Home Depot’s selection process fits with their strategies. An out-of-class activity would involve having a student or groups of students access Home Depot’s website https://careers.homedepot.com/cg/ and report on what they find in regard to selection. For example, a search of several job positions reveals that their selection tests can include application forms, drug tests, background checks, “validated selection tests.” Students could be asked to suggest which selection tests might be appropriate for one or two of the job descriptions and briefly explain why. How Do We Know? Do Recruiters Really Assess Fit? This inset box (on page 203) is briefly mentioned in the chapter. This gives a good reason to elaborate on the information presented in the box. Professor Amy Kristof-Brown conducted two studies (Personnel Psychology, 2000) addressing fit with specific jobs and organizations. As described in the inset box, the findings of her studies revealed that recruiters’ base their decisions about a candidate’s job-based fit and organization-based fit on different criteria. The first study showed that the recruiters used measures of specific knowledge, skills, and abilities to assess job-based fit, while they focused on values and personality traits to foretell organization-based fit. Although recruiters perceived both types of fit to be important to consider when deciding whom to hire, their perceptions of fit may be based on their personal beliefs. The class could be encouraged to read the details in the inset box or read more by accessing the 2000 article. During your lecture or class discussion of the chapter, these studies, conclusions, and recommendations could be summarized. This could be accomplished through your lecture (asking for student input) or assign the box to an individual student. You or the student could lead a brief class discussion after presenting the facts and his or her speculations to the class. Regardless of who presents the information, the recommendations (e.g., identifying the most accurate recruiters and training the others) and pitfalls (e.g., each recruiter’s personal beliefs influence his or her hiring decision) should be stressed. Either way, the students could be asked to speculate as to why and how the criteria used to predict job-based fit and organization-based fit support what the text authors noted about each type of fit Other ways to address this information could be through a short written assignment or a more in-depth research paper on the topic. How Do We Know? What Characteristics Do Recruiters Look For In Job Applicants? The section on Testing starts with a reference to this inset box (found on page 214). The results of the 1995 study described in this box found that managers prefer to hire people who are smart, good problem solvers, goal-driven, and organized. While these characteristics correlate with performance on the job, managers may be unaware of how they decide whom to hire. The information reported in the inset box could be part of a lecture or class discussion. Students could be asked if these are universal characteristics that are needed for all levels and types of jobs. They also could discuss the implications for managers not knowing on what criteria they are basing their hiring decisions. Technology in HR: Administering Tests On The Internet This inset box (refer to page 219) describes a large study that compared responses of a paper-and-pencil and web-based versions of the same test. The computer test had higher reliability and less evidence of faking. This supports results of other studies. Furthermore, in many instances, computer-based tests have less adverse impact and are seen as more fair by applicants from minority groups. The brief information presented in this box could be referred to during a lecture. Students could give their experiences with computer-based tests and why they think computerization might lead to higher reliability and reduce faking. The information in this box could provide a topic to be researched by students. The extensive reference list found in the box provides the students with some of the sources that they could use to write a longer research paper. Building Strength Through HR: Service Providers The success of selection tests used by three service providers is described in this inset box (refer to page 222). All three use tests that measure customer service skills. One organization adds an honesty test and the third organization measures the likelihood that the candidate will stay with the organization. Students could speculate what might contribute to the millions of financial benefits (high utility) that the organizations have experienced. They also could be asked if the selection tests provide a type of realistic messaging or realistic job previews (discussed in Chapter 5) regarding the nature and importance of customer service in each organization. If content validity is not addressed during the discussion, students should be asked if the tests have content validity and why. This could be addressed by the following group exercise or individual written paper. In small groups or as a written assignment, students could explain how 2-3 other selection techniques could help identify job candidates who have the potential to provide excellent customer service. They could also be asked to explain how to determine reliability and content and criterion validity for the techniques they identify. The above exercise could be accomplished with or without asking the students to access the websites for the three organizations. A web-based activity is described at the end of this Instructors’ Manual chapter. How Do We Know? Can Training Improve Interview Skills? The benefits of coaching job candidates on interviewing skills are described in the inset box found on page 228. Job candidates can learn to improve their interviewing skills and learn how to answer situational questions about a specific job. The students could be asked to consider a typical situation where some candidates were coached on interviewing skills and others were not. Now assume that a person who was coached was hired. The students could discuss the implications that such a scenario has on the criteria that are used to determine whether employee selection methods: reliability, validity, utility, legality and fairness, and acceptability. After this discussion, or as an alternative to the above proposed activity, the students could identify the pros and cons of an interviewer asking candidates if they’ve been coached in interviewing skills. The question could be asked as to how this information could be used by the organization or if the fact that that the interviewers knew who had been coached provide a basis for lawsuit. A related question could be to ask if coaching might have the same effect if the interview were unstructured? KEY TERMS Acceptability Achievement Alternate-forms method Assessment center Banding approach Behavioral Interview Biographical data Cognitive ability testing Concurrent validation strategy Content validation strategy Correlation coefficient Criterion-related validation strategy Defamation of character Employee selection Fairness Integrity testing Inter-rater method Job-based fit Long-term generalists Long-term specialists Minimum cutoffs approach Multiple hurdles approach Negligent hiring Organization-based fit Personality testing Potential Predictive validation strategy Predictor weighting Reliability Short-term generalists Short-term specialists Situational interview Situational specificity Split-halves method Structured interviews Test-retest method Utility Validity Validity generalization Work sample testing Instructor Manual for Human Resource Management: Linking Strategy to Practice Greg L. Stewart, Kenneth G. Brown 9780471717515