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Names: Heneman, Herbert G., III, 1944– author. | Judge, Tim, author. | Kammeyer-Mueller, John, author.
Title: Staffing organizations / Herbert G. Heneman III, University of Wisconsin-Madison, Timothy A. Judge, Ohio State University, John D. Kammeyer-Mueller, University of Minnesota.
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AUTHOR PROFILES
Herbert G. Heneman III is the Dickson-Bascom Professor Emeritus in the Management and Human Resources Department, School of Business, University of Wisconsin–Madison. He also serves as a senior researcher at the Wisconsin Center for Educational Research. Herb has been a visiting faculty member at the University of Washington and the University of Florida, and he was the University Distinguished Visiting Professor at The Ohio State University. His research is in the areas of staffing, per for mance management, compensation, and work motivation. He is currently investigating the design and effectiveness of teacher per formance management and compensation systems. Herb was on the board of directors of the Society for Human Resource Management Foundation and served as its director of research. He is the senior author of three other textbooks on human resource management. Herb is a Fellow of the Society for Industrial and Organizational Psychology, the American Psychological Association, and the Academy of Management. He is also the recipient of career achievement awards from the Human Resources Division of the Academy of Management and from the Society for Human Resource Management.
Timothy A. Judge is the Joseph A. Alutto Chair in Leadership Effectiveness and executive director of the Fisher Leadership Initiative in the Department of Management and Human Resources, Fisher College of Business, The Ohio State University. Tim is also the director of research for Stay Metrics, a start-up company in Notre Dame’s Innovation Park. Prior to receiving his PhD at the University of Illinois, Tim was a manager for Kohl’s department stores. Tim has served on the faculties of Cornell University, University of Iowa, University of Florida, and University of Notre Dame. Tim’s teaching and research interests are in the areas of personality, leadership and influence behaviors, staffing, and job attitudes. Tim is a former program chair for the Society for Industrial and Organizational Psychology and a past chair of the Human Resources Division of the Academy of Management. He has also served on the Academy of Management Board of Governors. Tim is a Fellow of the American Psychological Association, the Society for Industrial and Organizational Psychology, the American Psychological Society, and the Academy of Management.
John D. Kammeyer-Mueller is the Curtis L. Carlson Professor of Industrial Relations in the Department of Work and Organizations, Carlson School of Management, University of Minnesota. John’s primary research interests include the areas of organizational socialization and employee adjustment, personality and the stress process, employee retention, and career development. He has taught courses related to organizational staffing at the undergraduate, master’s, and doctoral levels. His research work has appeared in Academy of Management Journal; the Journal of Applied Psychology; Personnel Psychology; the Journal of Management; and the Journal of Organizational Behavior, among other outlets. He serves on the editorial boards of the Journal of Applied Psychology; Personnel Psychology; and Organizational Research Methods. In addition to his scholarly work, John has performed consulting work in the areas of employee satisfaction, retention, and workplace safety and health for 3M Corporation, Allegiance Healthcare, Allina Healthcare, and the State of Minnesota. He has also worked with the Florida Nurses Association and the Florida Bar on research projects of interest to their professional membership.
PREFACE
There has been a continual effort to incorporate strategic organizational concerns into every edition of the textbook. The ninth edition of Staffing Organizations develops these concepts significantly. Based on ideas from leading human resources thinkers, new discussions describe how to incorporate organizational strategy into every part of the staffing process. This material not only underlines the importance of strategic thinking for students, but provides specific guidance for specific actions that staffing decision makers can take to improve talent management.
This edition has been the beneficiary of major restructuring and updating to ensure continuing alignment of the material with current in-the-field business practices. The changes range from small inclusions of new standards to major chapter revisions. The new structure will make it easier for students to see how each part of the staffing process proceeds from beginning to end, and it will also help them see how the topics fit together to create a cohesive staffing management system.
The human resources landscape continues to be transformed by technology, and this edition of the textbook reflects this influence. The use of human resources information systems for tasks like recruitment, selection, and forecasting is now thoroughly integrated into all sections. The role of social media, the Internet, and other information management tools is emphasized in several chapters, and new examples from companies keep the application of concepts fresh and current.
The changes for this edition reflect the integration of technology into core staffing functions. Many of the previous headings related to web-based topics have thus been eliminated to reflect that these are no longer novel add-ons to staffing management but an integral part of the process.
Listed below are updates to each chapter.
Chapter One: Staffing Models and Strategy
• Updated workforce growth statistics throughout the chapter
• Updated list of companies that are intensively hiring
• Updated material on Gore’s position as one of Fortune magazine’s 100 Best Companies to Work For
• New material on person-job match and person-organization fit
• New material based on a recent report on the current talent shortage in the IT, skilled trades, and sales industries
• Added material on the distinction between the labor force size and the labor force participation rate
• Updated definition of staffing ethics from the Society for Human Resource Management
Chapter Two: Legal Compliance
• New material on classifying individuals as either employees or independent contractors based on criteria from the Internal Revenue Ser vice and the Department of Labor
• Guidance from the Equal Employment Opportunity Commission (EEOC) on defining discrimination based on the meaning of race/color, national origin, sex, religion, disability, age, pregnancy, and genetic information
• Updated information on the protected characteristics of sexual orientation and gender identity
Chapter Three: Planning
• Increased emphasis on organizational culture in the planning process
• New material on executive buy-in during human resources planning
• Updated discussion of workforce skills demand and employment patterns
• Revised exhibit showing labor force statistics trends
• New material on trends in labor force participation and work hours
• Streamlined discussion of forecasting techniques
• Comprehensive review of research on flexible workforce quality
• New material reviewing research on when to use outsourcing
• Updated information regarding affirmative action for veterans and qualified individuals with disabilities
Chapter Four: Job Analysis and Rewards
• Greater emphasis on implementing competency-based job analysis
• New figure showing the process of job requirements job analysis
• New figure showing the process of competency-based job analysis
• New figure outlining the distinctions among knowledge, skills, abilities, and other characteristics and their workplace relevance
• Streamlined discussion of O*NET models
• Revised end-of-chapter cases
• Revised information on the types of evidence of essential job functions
Chapter Five: External Recruitment
• New material on integrating in-house recruitment with external vendors
• Integration of online recruitment techniques across topic areas
• Comprehensive review of research on applicant reactions to the external recruitment process
• Increased discussion of social media effects on recruitment
• Revised and updated presentation of recruitment messages
• Increased treatment of targeted recruitment techniques
• New discussion of the transition from recruitment to selection
• Updated discussion regarding policies about written job applicants
• Revised material on best-practice recruitment ideas from the EEOC
• Updated information on recruitment using social media and job advertisements
Chapter Six: Internal Recruitment
• New material describing best practices in the strategic policy development process
• Revised and updated presentation of recruitment messages
• Revised and updated discussion of replacement and succession plans
• New discussion of the transition from recruitment to selection
• New material on best-practice promotion ideas from the EEOC
• New discussion of barriers to upward mobility and improving upward mobility
Chapter Seven: Measurement
• Updated example of the nominal level of measurement
• New material on biases in subjective measurement and rater training
• Revised percentiles example
• New discussion of the role of biases and contextual factors in interrater reliability
• New material on how construct-, content-, and criterion-related validation evidence should be amassed and interpreted together
• New material on the situational appropriateness of predictive versus concurrent validation designs
• Revised definition and discussion of content validity
• Updated illustrative study of the Maryland Department of Transportation
• New material reviewing the meta-analytic work on prior validity generalization and the gaps in our current understanding
• New example using insights from Glassdoor to highlight practical considerations in staffing
• New discussion of mobile and Internet-based test administration
Chapter Eight: External Selection I
• New material on applicant reactions toward per for mance tests and the validity of such tests
• Updated discussion of video résumés
• New material on the adverse impact of résumés, letters of recommendation, credit checks, and biodata
• New discussion of the “double jeopardy” effect
• New discussion of the usefulness of a college education and quality of school as educational requirements, including examples
• New material on how studying abroad leads to an expanded cultural intelligence, an area of extracurricular activities that may be impor tant for staffing
• New material on how experience is multidimensional, with many characteristics and levels of analysis
• New discussion of “Ban the Box” legislation
• New material on initial impressions as bias in initial interviews
• Updated material on applicant reactions and attraction from meta-analytic research
• Updated list of states that currently limit the use of credit information in staffing
• New material on social media screening and safeguards
• New discussion of bona fide occupational qualification claims and their justification
Chapter Nine: External Selection II
• Updated Big Five stability and heritability estimates with the most recent meta-analytic research
• Updated website links and test information throughout the chapter
• New material and discussion on the “too much of a good thing” effect with conscientiousness
• New material and discussion on the “trivial validities” of personality, including updated meta-analytic research and additional personality frameworks
• New material and meta-analytic evidence on personality test faking
• New material and discussion on when socially desirable behavior is not desirable for job per for mance
• Updated Exhibits 9.2 and 9.13 based on new evidence
• Updated evaluation of cognitive ability tests with newest meta-analytic research on organizational citizenship behavior and counterproductive work behavior
• Revised adverse impact evidence for cognitive ability tests
• New material on how “star applicants” can become offended by having to take cognitive ability tests
• New material and discussion on physical abilities tests that draw from the most recent meta-analytic estimates
• New material and discussion on performance-based emotional intelligence measurement and emotional intelligence validity
• Updated meta-analytic validity estimates of work sample tests
• New material and discussion on the “situational” perspective on situational judgment tests
• New material on integrity test validity and faking
• New material on vocational congruence and attained vocational aspirations
• Updated meta-analytic research and other material for interviews, including structured interview characteristics, behavioral and situational interview comparisons, validity, and interviewer characteristics
• New material on the National Football League (NFL) and how OCBs matters less to outsiders (e.g., external consultants) than to insiders in team selection
• Updated statistics and figures on drug testing
• Revised material on the Uniform Guidelines on Employee Selection Procedures
• New discussion of marijuana and other drug testing
Chapter Ten: Internal Selection
• Updated peer assessment section with meta-analytic results
• New material on the impact of self-assessments on biased promotion judgments
• New material on the impact of biases such as political skill on promotability ratings
• New meta-analytic material on the characteristics of assessment centers
• New material and discussion on solutions for the assessment center construct validity dilemma
• Revised the validity ranges to match traditional standards
Chapter Eleven: Decision Making
• New section on predictive analytics
• New section describing the interface between organizational leaders and HR representatives based on best practices in the field
• New material covering techniques for assessing economic impact
• New exhibit reviewing techniques for assessing links between economic impact analysis and other functional areas of the business
• New exhibit covering the role of decision makers in selection
• New section covering differential weighting techniques for predictors
• Updated and revised discussion of choosing among weighting schemes
• Streamlined discussion of test score banding
Chapter Twelve: Final Match
• New section on long-term adjustment and the process of new hire onboarding over time
• Updated and revised discussion of specific onboarding practices
• Increased discussion of expatriate adjustment in staffing
• Updated and revised discussion of the strategic approach to job offers, with increased linkages to decision making and system management
• Streamlined discussion of pay policies
• Streamlined discussion of employment contracts
• Revised material on negligent hiring and minimizing its occurrence
Chapter Thirteen: Staffing System Management
• New section describing the design and administration of staffing systems
• Emphasis on strategic fit between staffing systems and organizational goals and processes
• Incorporation of strategic management research regarding HR systems
• New exhibit contrasting hierarchical and participative staffing systems
• Review of techniques for defining the mission of staffing
• Updated and revised material on organizational arrangements
• New EEO-1 report
• New discussion of incorporating implicit (hidden) bias material into EEO training
• New and revised material on internal and external dispute resolution procedures
Chapter Fourteen: Retention Management
• Enhanced review of techniques for analyzing turnover
• Comprehensive update and reorganization of material related to retention initiatives
• New section on predictive analytics in retention management
• New exhibit contrasting hire, quit, and layoff differences across industries
• New exhibit demonstrating how to use turnover breakout results
• Updated exhibit describing guidelines for increasing satisfaction and retention of employees
• Updated and revised discussion of causes of turnover
• Updated and revised discussion of the costs and benefits of turnover
In preparing previous editions, we have benefited greatly from the critiques and suggestions of numerous people whose assistance was invaluable. They helped us
identify new topics, as well as clarify, rearrange, and delete material. We extend our many thanks to the following individuals:
• Amy Banta, Franklin University
• Fred Dorn, University of Mississippi
• Hank Findley, Troy University
• Diane Hagan, Ohio Business College
• Mark Lengnick-Hall, University of Texas–San Antonio
We wish to extend a special note of thanks to the McGraw-Hill Education publishing team—in par ticular, Michael Ablassmeir, Laura Spell, Melissa Leick, and Jane Beck—for their hard work and continued support of the number-one staffing textbook in the market. Thanks also to the staff at Westchester Publishing Services for their dedicated work in this collaborative undertaking. We wish to thank Dr. David R. Glerum for his hard work on manuscript revisions, editing, and preparation. Finally, we wish to thank you—the students and faculty who use the book. If there is anything we can do to improve your experience with Staffing Organizations, please contact us. We will be happy to hear from you.
CONTENTS
PART ONE
The Nature of Staffing 3
CHAPTER ONE
Staffing Models and Strategy 5
Learning Objectives and Introduction 6
Learning Objectives 6
Introduction 6
The Nature of Staffing 7
The Big Picture 7
Definition of Staffing 10
Implications of Definition 10
Staffing System Examples 13
Staffing Models 15
Staffing Quantity: Levels 15
Staffing Quality: Person/Job Match 16
Staffing Quality: Person/Organization Match 18
Staffing System Components 20
Staffing Organizations 23
Staffing Strategy 27
Staffing Levels 27
Staffing Quality 32
Staffing Ethics 33
Plan for the Book 36
Summary 37
Discussion Questions 38
Ethical Issues 38
Applications 38
Staffing for Your Own Job 38
Staffing Strategy for a New Plant 40
Endnotes 41
PART TWO
Support Activities 45
CHAPTER TWO
Legal Compliance 47
Learning Objectives and Introduction 49
Learning Objectives 49
Introduction 49
The Employment Relationship 50
Employer–Employee 50
Independent Contractors 53
Temporary Employees 54
Unpaid Interns and Trainees 55
Laws and Regulations 55
Need for Laws and Regulations 55
Sources of Laws and Regulations 56
EEO/AA Laws: General Provisions and Enforcement 58
General Provisions 58
Enforcement: EEOC 61
Enforcement: OFCCP 67
EEO/AA Laws: Specific Staffing Provisions 69
Civil Rights Acts (1964, 1978, 1991) 69
Age Discrimination in Employment Act (1967) 72
Americans With Disabilities Act (1990, 2008) 73
Genetic Information Nondiscrimination Act (2008) 77
Rehabilitation Act (1973) 78
Executive Order 11246 (1965, 1967, 2014) 78
Other Staffing Laws 79
Federal Laws 79
State and Local Laws 82
Civil Ser vice Laws and Regulations 83
Legal Issues in Remainder of Book 85
Summary 85
Discussion Questions 86
Ethical Issues 86
Applications 87
Age Discrimination in a Promotion? 87
Disparate Impact: What Do the Statistics Mean? 88
Endnotes 89
CHAPTER THREE
Planning 91
Learning Objectives and Introduction 93
Learning Objectives 93
Introduction 93
Internal and External Influences 94
Organizational Strategy 94
Organizational Culture 95
Labor Markets 97
Technology 102
Human Resource Planning 103
Process and Example 103
Initial Decisions 105
Forecasting HR Requirements 108
Forecasting HR Availabilities 111
Reconciliation and Gaps 119
Staffing Planning 121
Staffing Planning Process 121
Core Workforce 124
Flexible Workforce 125
Outsourcing 128
Diversity Planning 130
Demography of the American Workforce 130
Business Case for Diversity 131
Planning for Diversity 132
Legal Issues 134
Affirmative Action Plans 134
Legality of AAPs and Diversity Programs 139
AAPs for Veterans and Individuals With Disabilities 142
EEO and Temporary Workers 142
Summary 143
Discussion Questions 144
Ethical Issues 144
Applications 145
Markov Analysis and Forecasting 145
Deciding Whether to Use Flexible Staffing 145
Endnotes 147
CHAPTER FOUR
Job Analysis and Rewards 153
Learning Objectives and Introduction 155
Learning Objectives 155
Introduction 155
The Need for Job Analysis 156
Types of Job Analysis 156
The Changing Nature of Jobs 157
Job Requirements Job Analysis 159
Overview 159
Job Requirements Matrix 160
Job Descriptions and Job Specifications 168
Collecting Job Requirements Information 169
Competency-Based Job Analysis 177
Overview 179
Nature of Competencies 179
Collecting Competency Information 182
Job Rewards 185
Types of Rewards 185
Employee Value Proposition 185
Collecting Job Rewards Information 186
Legal Issues 193
Job Relatedness and Court Cases 193
Essential Job Functions 194
Summary 195
Discussion Questions 196
Ethical Issues 197
Applications 197
Conducting a Job Requirements or Job Rewards Job Analysis 197
Maintaining Job Descriptions 198
Endnotes 199
PART THREE
Staffing Activities: Recruitment 203
CHAPTER FIVE
External Recruitment 205
Learning Objectives and Introduction 207
Learning Objectives 207
Introduction 207
Strategic Recruitment Planning 208
Defining Strategic External Recruitment Goals 209
Open Versus Targeted Recruitment 211
Organization and Administration 213
Applicant Reactions 219
Reactions to Job and Organizational Characteristics 220
Reactions to Recruiters 220
Reactions to the Recruitment Process 221
Reactions to Diversity Issues 222
Communication 223
Communication Message 223
Communication Media 229
Strategy Implementation 236
Individual Recruitment Sources 236
Social Recruitment Sources 239
Organizational Recruitment Sources 242
Recruitment Metrics 248
Transition to Selection 251
Legal Issues 252
Definition of a Job Applicant 252
Affirmative Action Programs 254
Electronic Recruitment 254
Job Advertisements 257
Fraud and Misrepresentation 257
Summary 258
Discussion Questions 259
Ethical Issues 259
Applications 260
Improving a College Recruitment Program 260
Internet Recruitment 262
Endnotes 263
CHAPTER SIX
Internal Recruitment 269
Learning Objectives and Introduction 270
Learning Objectives 270
Introduction 270
Strategic Recruitment Planning 271
Defining Strategic Internal Recruitment Goals 271
Mobility Paths and Policies 271
Closed, Open, and Hybrid Recruitment 276
Organization and Administration 279
Timing 280
Applicant Reactions 283
Communication 284
Communication Message 284
Communication Media 285
Strategy Implementation 286
Recruitment Sources 286
Recruitment Metrics 292
Transition to Selection 295
Legal Issues 295
Affirmative Action Programs 296
Bona Fide Seniority Systems 296
The Glass Ceiling 298
Summary 301
Discussion Questions 302
Ethical Issues 302
Applications 302
Recruitment in a Changing Internal Labor Market 302
Succession Planning for a CEO 304
Endnotes 304
PART FOUR
Staffing Activities: Selection 309
CHAPTER SEVEN
Measurement 311
Learning Objectives and Introduction 313
Learning Objectives 313
Introduction 313
Importance and Use of Measures 314
Key Concepts 315
Measurement 315
Scores 319
Correlation Between Scores 322
Quality of Measures 327
Reliability of Measures 328
Validity of Measures 336
Validation of Measures in Staffing 339
Validity Generalization 348
Staffing Metrics and Benchmarks 351
Collection of Assessment Data 351
Testing Procedures 352
Acquisition of Tests and Test Manuals 354
Professional Standards 354
Legal Issues 355
Determining Adverse Impact 355
Standardization 358
Best Practices 358
Summary 359
Discussion Questions 361
Ethical Issues 361
Applications 361
Evaluation of Two New Assessment Methods for Selecting Telephone Customer Ser vice Representatives 361
Conducting Empirical Validation and Adverse Impact Analysis 364
Endnotes 367
CHAPTER EIGHT
External Selection I 371
Learning Objectives and Introduction 372
Learning Objectives 372
Introduction 372
Preliminary Issues 372
The Logic of Prediction 373
The Nature of Predictors 374
Development of the Selection Plan 376
Selection Sequence 376
Initial Assessment Methods 379
Résumés and Cover Letters 379
Application Blanks 383
Biographical Information 391
Reference and Background Checks 396
Initial Interview 402
Choice of Initial Assessment Methods 404
Legal Issues 409
Disclaimers 410
Reference Checks 410
Social Media Screening 411
Background Checks: Credit and Criminal 412
Preemployment Inquiries 415
Bona Fide Occupational Qualifications 417
Summary 420
Discussion Questions 420
Ethical Issues 421 Applications 421
Reference Reports and Initial Assessment in a Start-Up Company 421
Developing a Lawful Application
Blank 422
Endnotes 424
CHAPTER NINE
External Selection II 431
Learning Objectives and Introduction 432
Learning Objectives 432
Introduction 432
Substantive Assessment Methods 433
Personality Tests 433
Ability Tests 442
Emotional Intelligence Tests 450
Per formance Tests and Work Samples 453
Situational Judgment Tests 456
Integrity Tests 459
Interest, Values, and Preference
Inventories 464
Structured Interview 466
Selection for Team Environments 475
Choice of Substantive Assessment Methods 477
Discretionary Assessment Methods 481
Contingent Assessment Methods 481
Drug Testing 482
Medical Exams 488
Legal Issues 488
Uniform Guidelines on Employee Selection Procedures 488
Selection Under the Americans With Disabilities Act 489
Marijuana and Other Drug Testing 493
Summary 494
Discussion Questions 495
Ethical Issues 496
Applications 496
Assessment Methods for the Job of Human Resources Director 496
Choosing Among Finalists for the Job of Human Resources Director 498
Endnotes 499
CHAPTER TEN
Internal Selection 513
Learning Objectives and Introduction 515
Learning Objectives 515
Introduction 515
Preliminary Issues 516
The Logic of Prediction 516
Types of Predictors 517
Selection Plan 517
Initial Assessment Methods 518
Talent Management/Succession Systems 518
Peer Assessments 519
Self- Assessments 521
Managerial Sponsorship 521
Informal Discussions and Recommendations 523
Choice of Initial Assessment Methods 525
Substantive Assessment Methods 525
Seniority and Experience 526
Job Knowledge Tests 527
Per formance Appraisal 528
Promotability Ratings 530
Assessment Centers 531
Interview Simulations 538
Promotion Panels and Review Boards 539
Choice of Substantive Assessment Methods 539
Discretionary Assessment Methods 541
Legal Issues 541
Uniform Guidelines on Employee Selection Procedures 541
The Glass Ceiling 542
Summary 543
Discussion Questions 544
Ethical Issues 544
Applications 544
Changing a Promotion System 544
Promotion From Within at Citrus Glen 545 Questions 546
Endnotes 547
Staffing Activities: Employment 553
CHAPTER ELEVEN
Decision Making 555
Learning Objectives and Introduction 557
Learning Objectives 557
Introduction 557
Choice of Assessment Method 558
Validity Coefficient 558
Correlation With Other Predictors 560
Adverse Impact 560
Hiring Success Gain 560
Economic Gain 563
Determining Assessment Scores 566
Single Predictor 566
Multiple Predictors 566
Hiring Standards and Cut Scores 571
Description of the Process 572
Consequences of Cut Scores 573
Methods to Determine Cut Scores 574
Methods of Final Choice 579
Random Selection 579
Ranking 579
Grouping 580
Ongoing Hiring 580
Decision Makers 581
Organizational Leaders 581
Human Resource Professionals 582
Managers 583
Coworkers 583
Legal Issues 584
Uniform Guidelines on Employee Selection Procedures 584
Diversity and Hiring Decisions 585
Summary 586
Discussion Questions 587
Ethical Issues 587
Applications 587
Utility Concerns in Choosing an Assessment Method 587
Choosing Entrants Into a Management Training Program 589
• Define staffing and consider how, in the big picture, staffing decisions matter
• Review the five staffing models presented, and consider the advantages and disadvantages of each
• Consider the staffing system components and how they fit into the plan for the book
• Understand the staffing organizations model and how its various components fit into the plan for the book
• Appreciate the importance of staffing strategy, and review the 13 decisions that staffing strategy requires
• Realize the importance of ethics in staffing, and learn how ethical staffing practice is established
Introduction
Staffing is a critical organizational function concerned with the acquisition, deployment, and retention of the organization’s workforce. As we note in this chapter and throughout the book, staffing is arguably the most critical function underlying organizational effectiveness, because “the people make the place,” labor costs are often the highest organizational cost, and poor hiring decisions are not easily undone.
This chapter begins with a look at the nature of staffing. This includes a view of the “big picture” of staffing, followed by a formal definition of staffing and the implications of that definition. Examples of staffing systems are given.
Five models are then presented to elaborate on and illustrate various facets of staffing. The first model shows how projected workforce headcount requirements and availabilities are compared to determine the appropriate staffing level for the organization. The next two models illustrate staffing quality, which refers to matching a person’s qualifications with the requirements of the job or organization. The person/job match model is the foundation of all staffing activities; the person/ organization match model shows how person/job matching could extend to how well the person will also fit with the organization. The core staffing components model identifies recruitment, selection, and employment as the three key staffing activities, and it shows that both the organization and the job applicant interact in these activities. The final model, staffing organizations, provides the entire framework for staffing and the structure of this book. It shows that organizations, human resources (HR), and staffing strategy interact to guide the conduct of staffing support activities (legal compliance, planning, and job analysis) and core staffing activities (recruitment, selection, and employment); employee retention and staffing system management are shown to cut across both types of activities.
Staffing strategy is then explored in detail by identifying and describing a set of 13 strategic staffing decisions that confront any organization. Several of the decisions pertain to staffing levels and the remainder to staffing quality.
The ethics of staffing— the moral princi ples and guidelines for acceptable practice—is discussed next. Several pointers that help guide ethical staffing conduct are indicated, as are some of the common pressures to ignore these pointers and compromise one’s ethical standards. Suggestions for how to handle these pressures are also made.
Finally, the plan for the remainder of the book is presented. The overall structure of the book is shown, along with key features of each chapter.
THE NATURE OF STAFFING
The Big Picture
Organizations are combinations of physical, financial, and human capital. Human capital refers to the knowledge, skill, and ability of people and their motivation to use these successfully on the job. The term “workforce quality” refers to an organization’s human capital. The organization’s workforce is thus a stock of human capital that it acquires, deploys, and retains in pursuit of organizational outcomes such as profitability, market share, customer satisfaction, and environmental sustainability. Staffing is the organizational function used to build this workforce through such systems as staffing strategy, HR planning, recruitment, selection, employment, and retention.
At the national level, the collective workforces of US organizations total over 121 million (down from a peak of nearly 140 million in 2005), with employees spread across nearly 7.5 million work sites. The work sites vary considerably in size, with 24% of employees in work sites with fewer than 20 employees, 54% in work sites with 20–500 employees, and 21% in work sites with more than 500 employees.1 Each of these work sites used some form of a staffing process to acquire its employees. Job creation has continued to expand since job growth recovery from the Great Recession was achieved in April 2014; since then, nearly 4.6 million jobs have been added as of December 2015. Among the industries contributing to this job growth, serviceproviding industries such as hospitality, leisure, health care, and professional ser vices have been leading the way. Given the steadily increasing job growth over the last five years, as well as the boon in professional ser vices such as selection and assessment, staffing is big business for both organizations and job seekers.2
For most organizations, a workforce is an expensive proposition and cost of doing business. It is estimated that an average organization’s employee cost (wages or salaries and benefits) is over 22% of its total revenue (and generally a higher percentage of total costs).3 The percentage is much greater for organizations in
laborintensive industries—the serviceproviding as opposed to goodsproducing industries—such as retail trade, information, financial ser vices, professional and business ser vices, education, health care, and leisure and hospitality. Since serviceproviding industries now dominate our economy, matters of employee cost and whether the organization is acquiring a highquality workforce are of considerable concern.
A shift is gradually occurring from viewing employees as just a cost of doing business to valuing employees as human capital that creates a competitive advantage for the organization. Organizations that deliver superior customer ser vice, much of which is driven by highly knowledgeable employees with finetuned customer ser vice skills, have a definite and hopefully longterm advantage over their competitors. The competitive advantage derived from such human capital has impor tant financial implications.
In addition to direct bottomline implications, an organization’s focus on creating an effective selection system also has indirect implications for a competitive advantage by enhancing employees’ well being and retention. One recent study showed that employees who perceive that their company uses effective selection practices such as formal selection tests and structured job interviews (practices that we will discuss in this book) are more committed to their organizations. In turn, those higher levels of commitment lead to more helping or citizenship behaviors on the part of employees, as well as stronger intentions to remain employed, both of which ultimately contribute to an organization’s bottom line.4
This renewed focus on establishing a competitive advantage in staffing has also been revolutionized by advancements in technology that have changed the way employees are assessed during the staffing process. These include changes in the delivery of assessments (e.g., computerized adaptive testing [CAT] and mobile assessment); novel ways of assessing applicant knowledge, skill, and ability (e.g., simulationbased training and serious games); and the advanced scoring and reporting of assessments (e.g., electronic scoring and reporting). Although these changes are often financially sound and efficient benefits for organ izations, this new paradigm in staffing is not without its limitations, including the potential threat of reduced effectiveness due to decreased facetoface contact in assessment and a potential for the cognitively demanding nature of electronic assessments to adversely affect members of the applicant pool.5 Interestingly, this recent “technology effect” suggests that certain technological advancements may be viewed with rosecolored glasses, even without proper evaluation of their effectiveness.6
Thus, organizations are increasingly recognizing the value creation that can occur through staffing. Quotes from several organizational leaders attest to this, as shown in Exhibit 1.1. Of course, it should also be noted that effective staffing involves a series of tradeoffs in practice, such as between customization and consistency or wide reach and coherence.7
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single chamber is preferable, and perhaps necessary There are so many difficulties to be surmounted, so many prejudices to be conquered, so many sacrifices to be made, such old habits to root out, so great a power to control; in a word so much to destroy, and almost all to create anew. This moment, gentlemen, which we are so happy as to have seen, of which it is impossible a description can be given when private characters, orders of men, and provinces, are vying with each other, who will make the greatest sacrifices to the public good when all press together at the tribune, to renounce voluntarily, not only odious privileges, but even those just rights, which appear to you an obstacle to the fraternity and equality of all the citizens. This moment, gentlemen, this noble and rich enthusiasm which hurries you along, this new order of things which you have begun all this most assuredly, could never have been produced but from the union of all persons, of all opinions, and of all hearts.’
27. ‘It is worthy of remark, that the divine right of tithes was never insisted on, ’ says a french writer, ‘ even by the clergy, during this debate. Yet the year before, when the same question was brought forward in the irish house of parliament, great stress was laid on this gothic idea of their origin.’
28. It is observable, that the satisfaction of the people was by no means equal to the discontent manifested by the privileged orders.
29. See the article 10. ‘No man ought to be molested on account of his opinions, not even on account of his religious opinions, provided his avowal of them does not disturb the public order established by law.’
30. Calonne.
31. In Holland almost all the taxes are collected in the shape of excise.
In France, formerly, the taxes were generally internal; but, since the mode established of making a revenue of 300,000,000 l. by the land and house tax part of the 580,000,000 l. estimated to be the peace establishment, it appears, that this was too great a proportion to be obtained in that way. Hence the revenue of France has lately failed in a great degree.
In America the taxes of the federal government have been lately established solely on the customs, that is to say, on goods imported. These operate two ways; encouraging home manufactures, and discouraging the manufactures of other countries.
Great Britain has levied her revenue on customs both inwards and outwards; on excise, principally internal; on stamps, which operate both internally and externally; and on fixed objects, as well as internal consumption, (as salt).
32.
‘O Richard, O mon roi, L’univers t’abandonne!’
33. They used to lie to be owned in a conspicuous part of the city.
34. There are upwards of thirty scattered throughout the city.
35. I use this word according to the french acceptation, because we have not one to express so forcibly the same signification.
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