Staffing

Chapters 1 – 4

Chapter 1 – The Nature of Staffing

The Big Picture

55% of all worksites are fewer than 100 employees

Total costs for employees is 25% of an organization’s revenue

Chapter 1 – The Nature of Staffing

Valuing Human Capital

Human capital is intangible, but value can be estimated:

Organization’s Stock value – Organization’s tangible assets ($) = Human Capital Value

Chapter 1 – The Nature of Staffing

Staffing

Process of acquiring, deploying and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness

The Nature of Staffing

Acquire – planning for positions, recruiting, selection, etc.

Deploy – placing new hires into jobs

Retention – manage flow of employees out of the organization

The Nature of Staffing

Work with your team members to complete the case “Staffing your own job” on page 33.

The Nature of Staffing

Staffing Models

Quantity – concerned with positions and requirements

Quality – concerned with aligning individuals with jobs (person/job match) or organizations (person/organization match)

The Nature of Staffing

Staffing Models

Quantity Projected staffing requirements compared to

projected staffing availabilities

Determine overstaffing, understaffing or fully staffed

The Nature of Staffing

Staffing ModelsQuality

Job, organizational values, all possible jobs now and in the future

Person (KSAOs, motivation)

To attain HR outcomes: attraction, performance, retention, attendance, satisfaction, etc.

The Nature of Staffing

Strategic Decisions in Staffing (Exhibit 1.7)Levels

Aquire v. Develop Lag v. Lead

Quality Person/job v. Person/organization Specific v. general KSAOs

The Nature of Staffing

Group Discussion

Are some of the 13 strategic decisions more important than the others?

Which ones and why?

Chapter 2 – Legal Compliance

Employee-Employer relationship

At-will employment Independent contractingTemporary employeesOut-sourced employees

Legal Compliance

Law and regulations to balance power and protect employees and employers

Based on common law, constitutional and statutory law, executive orders and agencies (Exhibit 2.2)

Legal Compliance

EEO – Equal Employment Opportunity Facially neutral practices

AA – Affirmative Action Remedy effects of past discrimination

Quotas Focus on staffing results; voluntary unless court

ordered as part of AA planning

Legal Compliance

Claims of discrimination require evidence or proof. Effects can be shown by:

Disparate Treatment Disparate Impact

Legal Compliance

Disparate Treatment: (page 56)

1. person belongs to protected class2. person was qualified3. person was rejected4. position remained open and applicants as qualified were recruited

Legal Compliance

Disparate Impact: (page 57)

Applicant flow statistics

Stock statistics

Concentration statistics

Legal Compliance

Application Flow Statistics

Significant differences in selection rates between groups

Selection RateApplicants Hired #hired/#app50 men 25 25/50 = 50%45 women 5 5/45 = 11%

Legal Compliance

Application Flow Statistics – Adverse Impact

4/5ths rule or 80% rule

The hiring rate for the protected class must be at least 80% of the hiring rate for the non-protected class

Legal Compliance

Selection Rate Applicants Hired #hired/#app 50 men 25 25/50 = 50% 45 women 5 5/45 = 11%

.80(50) = 40 11% is less than 40%, therefore, there may be

adverse impact

Legal Compliance

Your Turn…

Recently ABC, Inc. advertised for computer programmers. Seventy minority and 80 non-minority applicants applied for the positions. ABC hired 55 non-minority and 7 minority applicants. Is there disparate impact?

Legal Compliance

Selection RateApplicants Hired #hired/#app80 Non-minority 55 55/80 = 68%70 Minority 7 7/70 = 10%

.80(68) = 54%10% is less than 54%, therefore, likely that

there is adverse impact.

Legal Compliance

Your Turn…

At Heneman and Judge, Inc. a recent recruiting campaign was conducted to hire several new entry level managers. There were 200 male and 220 female applicants. Twelve men and 32 women were hired. Is there disparate impact?

Legal Compliance

Selection RateApplicants Hired #hired/#app200 men 12 12/200 = 6%220 women 32 32/220 = 14%

See page 57 (top), “…protected characteristic…”

Legal Compliance

Stock Statistics

Underutilization of women and minorities relative to their availability in the relevant* population

*relevant = qualified, interested, geographic

Legal Compliance

Stock Statistics

Hired Available

Men 90% 70%

Women 10% 30%100% 100%

Disparity between 10% hired and 30% available

Legal Compliance

Your Turn…

Hired Available

Minority 20% 40% Non-minority 80% 60%

Disparity? Explain.

Legal Compliance

Concentration Statistics

Concentration of women and minorities in certain job categories

Legal Compliance

Concentration Statistics

Clerical Production Sales Managers

% men 3 85 45 95 % women 97 15 55 5

Is there Disparity within certain job categories?

Legal Compliance

Your Turn…

Clerical Production Sales Managers

% minority 20 90 25 15 % non-minority 80 10 75 85

Is there Disparity within certain job categories?

Legal Compliance

Major Federal EEO/AA laws:

Title VII of the CRA (1964, 1991) Race, color, religion, sex, national origin

Age Discrimination in Employment Act (ADEA) (1967) 40 or over

Americans with Disabilities Act (ADA) (1990) Qualified individual with a disability

Legal Compliance

Major Federal EEO/AA laws enforced by the OFCCP (Office of Federal Contract Compliance Programs) v. EEOC (Equal Employment Opportunity Commission) for federal contracts:

Rehabilitation Act (1973) Individual with a handicap (OFCCP, Office of Federal

Contract Compliance Programs) Executive Order 11246 (1965)

Race, color, religion, national origin, sex

Legal Compliance

To rebut charges of adverse/disparate impact, employers must show staffing practices are job-related and consistent with business necessity.

Exception: business necessity can’t be used to justify intentional discrimination

Legal Compliance

Employers can use:

BFOQ – sex, religion, national origin, age (not race or color)

Testing (no score adjustments)Seniority

Legal Compliance

Work in your groups to complete the case “Age Discrimination in Promotion?” on page 80.

Odd-numbered groups and named groups (e.g., Aces, 3s, 5s, etc.) complete question #1 only.

Even-numbered groups complete question #2 only.

Legal Compliance

Uniform Guidelines on Employee Selection Procedures (UGESP)

www.eeoc.gov/regs

Legal Compliance

EEO best practice criteria: (page 71)

Complies with the law Promotes EEO Manifests management commitment/accountability Ensures management and employee commitment Produces noteworthy results Does not cause or result in unfairness

See SPLENDID on page 71 for EEO programs

Legal Compliance

Become more aware of your field requirements:

PIHRA (Professionals in HRM) www.pihra.orgSHRM (Society for HRM) www.shrm.org

Both have student memberships ($30 & $35)

Legal Compliance

Become more aware of your field requirements:

Certification for HRM professionals PHR (Professional in HRM) SPHR (Senior Professional in HRM) GPHR (Global Professional in HRM)

Finance – the language of business

Chapter 3 - Planning

External influences on staffing:

Economic conditionsLabor marketsLabor unions

Planning

Five Steps of Human Resource Planning (HRP):

1. determine future HR requirements 2. determine future HR availabilities 3. conduct ext. and int. environmental scan 4. determine gaps (required v. available) 5. develop action plan to close the gap

Planning

Forecasting HR requirements

Statistical techniques Judgmental techniques

Planning

Statistical techniques Ratio Analysis – people to $sales

$sales / 1 FTE

If we can currently do $2,000,000 in business with 10 full-time equivalent employees (or $200,000 sales per 1 FTE), then for every additional $200,000 in business we would expect to hire one FTE.

Planning

Statistical techniquesRegression Analysis – prediction of an

outcome based on several factors

Why do we hire new people?

Planning

Regression Analysis

For example based on our projection of new customers and sales volume:

Y = a + b1x + b2x + b3x …bnxWhere Y = dependent on x, and x is

independent (changing)

Planning

Regression Analysis

We can predict needed FTEs depending upon projected sales of $1,000,000 and 300 new customers:

Y = a + b1x + b2x + b3x …bnx

FTEs = 7 + .0004(1,000,000) + .03(300)

= 413 new hires or FTEs

Planning

Judgmental technique

Decision-makers gather information and subjectively evaluate it.

Who should the “decision-makers” be?

Planning

We just saw that statistical techniques such as regression and ratio analysis can be used to predict HR requirements, now we turn to HR Availability.

Planning

Forecasting HR Availabilities

Statistical techniques Markov Analysis – count # employees in each job/category

at time T (past) and where there are in time T+1 (now)

#employees in job at T+1 / #employees in job at T

If 240 employees in job A now, but 400 in that job in the past, 240/400 = .60 (transition probability)

Planning

Markov Analysis T+1 T Exit

Sales clerk (S1) 80 120 20

Senior sales clerk (S2) 60 55 2

Sales supervisor (S3) 20 18 0

For T+1, S1: 20 people quit, 20 people were promoted to S2, and 0 people were promoted to S3

Planning

Markov Analysis S1 S2 S3 Exit

S1 80/120 20/120 0/120 20/120

S2

S3

Planning

Markov Analysis S1 S2 S3 Exit (Total)

S1 .66 .16 0 .16 (.98 rounding)S2 S3

Current Workforce # for S1 =76. So, 76 * .66 = 50 will probably stay in S1; 12 will probably be promoted to S2; and 12 will probably exit

If we require 110 people in job S1 there is a shortage (110 – 50 = 60), etc.

PlanningLimitations of Markov Analysis:

- Should have 20 or more employees in each group; otherwise, results are misleading

- Only shows movement at 2 times, not all moves employees make

- Must define meaningful, specific job categories (categories such as “managers” lose meaning as the numbers may represent many organizational units)

Planning

Other ways to forecast HR Availability:

Executive reviews – small group of people focus on movement within/outside exec group

Succession planning – replacing execsVacancy analysis – per person analysis of

likely movement through organization

Planning

Internal and External Scanning

Internal – knowledge of internal labor force issues, problems, attitudes, etc.

External – knowledge of consumer market, economy, labor market, etc.

Planning

Compare Requirements with Availabilities (Reconciliation and Gaps)

Develop action plan to close gap by filling shortages, promoting or transferring people when there are surpluses, etc.

Planning

HR Planning provides information on

Staffing flow

Helps to set or support staffing philosophy (e.g., internal or external staffing)

Supports developing an affirmative action plan and diversity management

Planning

Case on Flexible Staffing

Planning

Affirmative Action Plans (AAP)

Do AA goals represent quotas?AA originally designed to overcome past

harm; now a part of diversity programsLegal based on the Supreme Court opinion(See guidelines for acceptable AAPs, P. 128)

Note:

You will need a calculator for the first exam.

Cell phones and other electronic devices other than a calculator are not allowed during the exam.

You may not share a calculator with another student during the exam.

Chapter 4 – Job Analysis

Job analysis – systematically gathering information about jobsJob Family (HR, Marketing, etc.)

Job Category (Manager, clerk, analyst, etc.)

Job (definition of a group of tasks to perform)

Position (definition of tasks for a single employee)

Chapter 4 – Job Analysis

Job analysis – studying jobs… Task Dimension – similar types of tasks (decision-

making, maintenance, supervising, etc.)

Task – grouping of elements to define a work activity (arrange schedules, develop reports, manage projects)

Element – smallest unit into which work can be divided (develop income statement)

Chapter 4 – Job Analysis

Application #1 – Conducting a job requirements or job rewards analysis

Chapter 4 – Job Analysis

Job analysis Job Requirements Matrix and Task Statements

Specific Task Task Dimension %Time KSAOs Importance of KSAOs to task (time, necessity to

performance of a task, specialized training, etc)

Chapter 4 – Job Analysis

Job analysis Task Statements

Sentence Analysis Technique Verb Direct Object Output Equipment, Material, Process… Arrange team meetings to develop product ideas using brainstorming and other

decision-making techniques

(note: this is an excellent way to phrase your resume)

Chapter 4 – Job Analysis

Write two task statements for a familiar job. Be prepared to share your results with the class.

Chapter 4 – Job Analysis

KSAOs (Exhibits 4.6, 4.7, 4.8, and 4.9) Knowledge

Theoretical or conceptual awareness of a body of work such as mathematics, business, etc.

Skill Observable behavior or completed action based on

experience and practice

Ability Underlying trait or characteristic such as cognitive,

psychomotor, physical, and sensory

Chapter 4 – Job Analysis

Job requirements matrix

With your group, create a job requirements matrix for one job using Exhibit 4.3 as your guide.

Be prepared to share your results.

Chapter 4 – Job Analysis

Application # 2 – Maintaining job descriptions

Chapter 4 – Job Analysis

Collecting Job requirements information:Prior informationObservation InterviewsQuestionnaires

Chapter 4 – Job Analysis

Source of information:Job analystJob incumbentsSupervisorsSubject matter experts

Chapter 4 – Job Analysis

Process of Job AnalysisAgree on purposeSet the scope of the projectDecide on internal experts or consultantsName project manager and determine rolesSet work and time frameAnalyze, synthesize, and correct, etc.

information

Chapter 4 – Job Analysis

Focus of Job AnalysisCompetency-based analysis – focus on

underlying characteristics such as leadership, adaptability, technical expertise, creativity, etc.

Job Rewards analysis – focus on extrinsic and intrinsic rewards of a job such as bonuses, flexible work schedule, etc.

Chapter 4 – Job Analysis

Why is job analysis so important

Effectiveness in hiring, training and promotionJob description development and

maintenanceLegal compliance and job relatedness, (see

essential job functions beginning on p. 189)

Chapter 4 – Job Analysis

Putting it all together.

Try a job analysis exercise.