Staffing Exam 2

some recruiting sources are:

-faster or cheaper -better at acquiring people who fit the corporate culture and work processes -better at acquiring high-quality people -better at acquiring people less likely to leave; with previous work experience -better at generating large numbers of hires; professional hires -better for long term needs -need to be flexible and creative

possible ratios for ratio analysis

-production to employees -revenue per employee -managers to employee -inventory levels to employees -number of customers or customer orders to employees -labor costs to all production costs -percent utilization of production capacity to employees

types of business activity forecasts

-seasonal -interest rate (project likelihood that the organization will need to build new plants and increase production rate in near future) -currency exchange -competitors -industry and economic -increase or decrease in consumer spending -unemployment rate

forecasting labor demand

identify minimal and optimal staffing levels when analyzing labor demand demand for labor depends on its forecasted business activity and its business needs (depends on business strategy) most important: for positions and skills that will be central to organization's intended strategic direction

internet data mining 1. boolean searches

internet search technique that allows a search to become narrowed by using special terms before the keywords use operators AND, NOT, OR

internet data mining 5. networking sites

leveraging your personal connections to generate applicants social media; linkedin

subjective measures

contain items for which the score can be influenced by the attitudes, biases, and personal characteristics of the person doing the scoring

staffing planning 3. how much time will it take to hire?

continuous recruiting can shorten the hiring timeline batch recruiting: recruiting a new applicant pool each time

random error

error that is not due to any consistent cause

systematic error

error that occurs because of consistent and predictable factors sources include time of day; day of week

contamination error

error that occurs when other factors unrelated to whatever is being assessed affect the observed scores

deficiency error

error that occurs when you fail to measure important aspects of the attribute you would like to measure

transition probability matrix

likelihood of people staying in their position or transferring usually the transition interval is less than 2 years predicted shortages and surpluses can be easily calculated by subtracting current employee counts from estimated employee counts

correlation coefficient

"pearson's r" "bivariate correlation" single number that ranges from -1 to +1 that reflects the direction (positive or negative) and magnitude (strength) of the relationship between two variables **correlation: strength of a linear relationship between two variables

create a sourcing plan 2. perform ongoing recruiting source effectiveness analyses by tracking

-where applicants discovered the vacancy -where top candidates discovered the vacancy -what were the demographic characteristics of the recruits from each source -recruiting yield analysis: tracks recruiting sources that produced each applicant and evaluates each source on basis of relevant criteria -promotion rates by source

types of job seekers

1. active job seekers: people who . need a job and are actively looking for information about job openings 2. semi-passive job seekers: people who are interested in a new position but only occasionally look actively for one 3. passive job seekers: currently employed and are not actively seeking another job, but could be tempted by the right opportunity

creating an assessment system

1. conduct a job analysis to identify important KSAOs and competencies required of a successful employee 2. identify reliable and valid methods of measuring these KSAOs and competencies, and create a system for measuring and collecting the resulting data 3. examine the data collected from each measure to ensure that it has an appropriate mean and standard deviation 4. use correlation or regression analysis to evaluate any redundancies among the measures and to assess how well the group of measures predicts job success 5. consider adverse impact and the cost of the measures in evaluating each measure 6. after the final set of measures are identified, develop selection rules to determine which scores are passing 7. periodically reevaluate the usefulness and effectiveness of the system to ensure that it is still predicting job success without adverse impact

using existing assessment methods

1. examine available validation evidence supporting using the measure for specific purposes 2. identify the possible valid uses of the measure 3. establish the similarity of the sample group(s) on which the measure was developed with the group(s) with which you would like to use the measure 4. confirm job similarity 5. examine adverse impact evidence

workforce planning process

1. identify business strategy--vision, mission, and strategy affects staffing requirement 2. articulate the firm's talent philosophy and strategic staffing decisions 3. conduct a workforce analysis--forecast labor demand and supply and identify gaps 4. develop and implement action plans--to address gaps; consistent with firm's talent philosophy 5. monitor, evaluate, and revise the forecasts and action plans--for effectiveness

internal cost per hire

1. internal advertising costs 2. travel and interview costs 3. relocation costs 4. internal recruiter costs

types of measurement

1. nominal (numbers are assigned to discrete labels or categories) 2. ordinal (attributes are ranked by assigning numbers in ascending or descending order) 3. interval (distance between scores on an attribute has meaning) 4. ratio (distance between scores has meaning and includes a true meaningful zero point)

factors influencing recruiter effectiveness

1. organization's characteristics 2. characteristics of the job 3. hiring managers 4. coworkers 5. the labor market (shortages and surpluses can have impact on how effective recruiters are)

recruiter training

1. recruiter knowledge 2. interpersonal skills (tailor pitches to individuals) 3. presentation skills 4. cultural skills (cultural sensitivity and understand cues) 5. organizational goals and recruiting objectives 6. legal issues (screening systems; quotas are illegal) 7. multiple assessments 8. applicant attraction (passive job seeker)

recruitment consistency--recruiting guide

a formal document that details the process to be followed in recruiting for an open position addresses both internal and external recruiting processes clarifies company policies and procedures relating to appropriate budgets, activities, timelines, responsible staff, legal issues, and the specific steps to be taken in recruiting for the position

organizational image

a general impression based on both feelings and facts --what elements matter to you? the more favorable a company's image, the more people are likely to consider the organization attractive as an employer and state a willingness to respond to its recruitment advertisements differs across subgroups of individuals

normal curve

a symmetrical, bell-shaped curve representing the distribution of a characteristic variability: "spread" of data around the midpoint normal distribution: distribution of scores under the normal curve central tendency: midpoint of data (mean, median, mode--always the same if normal distribution) percentile score: raw score that has been converted into expression of % of people who are at or below the score

recruiting

activities that convert the leads generated during sourcing into job applicants, generate interest in a company and its jobs, and persuade candidates to accept extended job offers can be done by recruiters, hiring managers, or employees help employ a talented group of employees who contribute to firm's business strategy so firm can achieve competitive advantage

forecasting business activity

an organization's product demand directly affects its need for labor locate reliable, high-quality information sources within and outside of the organization to forecast business activity forecasting constructs estimates as a range

why do organizations conduct assessments despite these errors?

appropriately using professionally developed measures enables organizations to make more effective staffing decisions than does the use of simple observations or random decision making, even if they are not perfect *whole-person approach: practice of using a variety of measures and procedures to more fully assess people

ratio analysis

assumes there is a relatively fixed ratio between the number of employees needed and certain business metrics need consistent historical trends to calculate ratios (establishes reasonable range)

employer image

attitudes toward and perception of the organization as an employer employer brands reinforce the employer image

procedural fairness

beliefs that the policies and procedures that resulted in the hiring or promotion decision were fair respect applicants' privacy, avoid delays, use job-related assessments, give fair opportunity to perform applicants react negatively when there are delays in recruitment process

global sourcing 3. local employment agencies

can be useful source of guidance in terms of information on the characteristics of the local labor force

forecasting labor supply

combining current staffing levels with anticipated staffing gains and losses results in an estimate of the supply of labor for the target position at a certain point in the future anticipated gains and losses can be based on historical data combined with managerial estimates of future changes external labor market: people who do no currently work for a firm *start in-house* already have performance evaluations; thinking about it from succession planning perspective

standard scores

converted raw scores that indicate where a person's score lies in comparison to a referent group --indicates how many units of standard deviations the individual's score is above or below the mean of referent group negative when the target individual's raw score is below the referent group's mean positive when the target individual's raw score is above the referent group's mean

statistical significance

degree to which the observed relationship is not likely due to sampling error minimum requirement for establishing a meaningful relationship correlation is statistically significant if it has less than a certain probability of being due to a sampling error --does not guarantee a predictor is useful

construct-related validation

demonstrating that a measure assesses the construct, or characteristic, it claims to measure established by pattern of correlations among items within a measure

content-related validation

demonstrating that the content of a measure assesses important job-related behaviors

criterion-related validation

demonstrating that there is a statistical relationship between scores from a measure and the criterion, usually some aspect of job success

nature of the recruiting message

different type of recruiting materials are used to attract the attention of potential applicants and induce them to apply message content should appeal to the goals and values of the targeted recruits non-compensatory screening factors should be communicated to facilitate self-selection --job's location, type of job, pay

permanent employee surplus

early retirement incentives, layoffs, and not filling vacated positions can reduce an employer's headcount--with a cost action plans to address a persistent employee surplus--reassignments, hiring freezes retraining employees to fill other jobs in the firm don't lose senior talent (institutional knowledge and culture)

why is proper measurement important?

effective measurement and data analytics can result in a competitive edge improperly assessing and measuring candidate characteristics can lead to --systematically hiring the wrong people --offending and losing good candidates --exposing your company to legal action

forecasting internal labor market

estimate the competency levels and number of employees likely to be working for the company at the end of the forecasting period to forecast internal talent resources for a position--subtract anticipated losses from the number of employees in the target position at the beginning of the period -anticipated losses due to promotions, demotions, transfers, resignations -anticipated gains from promotions, transfers are added to internal labor supply forecast analyze company's demographic mix and current turnover rates help managers forecast how many current employees are likely to still be in company's workforce at given date

return on investment analysis

estimate the return on investment from adding a new position based on the costs and outcomes resulting from that new hire

interactional fairness

fairness of the interpersonal treatment and amount of information received during the hiring process -honesty, respect, recruiter warmth, and informativeness companies have control over how applicants perceive interactional fairness

networking and social media

generate leads to passive job candidates potential for discrimination due to amount of personal information available recruiters can post to twitter--can be retweeted for a wider audience

applicant reactions

goal of recruiting: give every applicant a positive feeling about the organization organizational and individual perspectives are both relevant -effective recruitment requires considering the applicant's perspective and needs -both parties are pursuing a business relationship -"fit" with the business and people in the organization

graphing correlations: scatter plots

graphical illustration of the relationship between two variables each point on the chart corresponds to how a person scored on a measure and how he or she performed on the job negative correlations just as useful as positive correlation

temporary talent shortage

hiring inducements that last only as long as the talent shortage does are often better companies turn to more expensive recruiting methods such as search firms, or lower their hiring standards so more recruits are considered qualified offer hiring incentives such as sign-on bonuses and retention bonuses recruit people already working for the company

reliability

how dependably or consistently a measure assesses a particular characteristic measurement error influences reliability --error can be random or systematic

creating a source plan 1. profile desirable employees to identify promising sources

identify what desirable talent and successful current employees in targeted jobs like to do and how you might reach them if you were to try to recruit them now using surveys or focus groups, ask where do they like to go, what media they use refine where you target message

sourcing

identifying and locating high potential recruits done for internal and external job candidates involves the analysis of different possible sources of recruits to identify those best able to meet the firm's staffing goals finding the right kind of candidate (quality over quantity)

internet data mining 3. flipping or flip searching

identifying people who link to a web site

temporary employee surplus

if slowdowns are cyclical or happen frequently--use contingent workers who are first to be let go when business slows can help to provide a buffer around key permanent workers temporary layoffs may need to last more than 6 months to be cost effective across-the-board salary cuts; reduction in work hours; reallocating workers to expanding areas of the business

signaling

in absence of objective information, people may rely on recruiter's traits and behaviors as signals of aspects of both the company and job opportunity ((demographic minority recruiter may signal firm's demographic diversity)) recruiter behaviors affect applicant attraction indirectly through influencing applicant perceptions of job and organizational attributes

determinant of effectiveness: 3. applicant reactions

including the perceived job relatedness and fairness of the assessment method

alternate or parallel form reliability

indicates how consistent scores are likely to be if a person completes two or more forms of the same measure estimated by correlation between two (or more) administrations of different forms that are supposed to measure the same construct to the same population

inter-rater reliability

indicates how consistent scores are likely to be if the responses are score by two or more raters using the same item, scale, or instrument

internal consistency reliability

indicates the extent to which items on a given measure assess the same construct based on correlation among the items comprising a measure high coefficient indicates items on a measure function in a similar manner

spillover effects

indirect or unintended consequences of an action many firms treat job candidates as if they should feel privileged the firm is even considering them for a position, and treat rejected candidates as if that was the end of their relationship--NOT THE CASE effects of an organization's actions and reputation on applicant attraction begin before an organization ever advertises an open position and continue after the position is filled

criterion data

information about important outcomes of the staffing process includes all outcome information relevant to the evaluation of effectiveness of the staffing system against its goals

predictive data

information about measures used to make projections about outcomes can come from any part of the hiring process includes information on sourcing qualities, traits, etc.

employee survey

internal labor market forecasting method identify the potential for increased turnover in the future

talent inventories

internal labor market forecasting method summarize each employee's skills, competencies, and qualifications

labor supply chain management

internal labor market forecasting method the basic foundation of any supply chain model is to have the right product, in the right volume, in the right place, at the right time, with the right quality

replacement charts

internal labor market forecasting method visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs developed for high-level positions

who should recruit?--making and establishing a relationship with potential employee

internal recruiters (assign to line managers rather than HR professionals--recruiters better to answer broad questions) external recruiters (must provide continuous feedback; extensive network of candidates) employees hiring managers

internal recruiting sourcers

locate people who would be good recruits for other positions 1. succession management: ongoing process of recruiting, evaluating, developing, and preparing employees to assume other positions in the firm 2. talent inventories 3. employee development: training of employees to extend their capabilities and prepare them to assume jobs in the future 4. internal job posting systems 5. employee referrals

standard error of measurement

margin of error that you should expect in an individual score because of the imperfect reliability of the measure represents the spread of scores you might have observed had you tested the same person repeatedly lower the standard error, the more accurate the measurements

staffing ratio

mathematical way of calculating the number of employees a firm needs to produce certain levels of output

criterion-referenced measures

measures in which the scores have meaning in and of itself standards based assessments

norm-referenced measures

measures in which the scores have meaning only in comparison to the scores of other respondents

validity coefficient

number between 0 and +1 that indicates the magnitude of the relationship between a predictor (such as test scores) and the criterion (such as a measure of actual job success) absolute value of the correlation between the predictor and criterion rarely exceed 0.4 the higher the coefficient, the more beneficial it is to use the measure

data

numerical outcomes of measurement

selection errors

occur when you fail to hire someone who would have been successful at the job (false negatives) or you hire someone who is not successful at the job (false positive) cannot be completely avoided in any assessment program or method, but they can be reduced

recruiter goals and feedback

organization usually has specific goals for recruiter activities including --employer branding --candidate screening --generating candidate's interest

for a recruiter to pursue the organization's goals:

organization's goals must be known by the recruiter and be consistent with the recruiter's personal goals **the recruiter must receive feedback in relation to these goals ---new hire job performance ---new hire failure rate (fired) ---turnover of new hires (leaving the org within a year) ---manager and new hire satisfaction ---time to productivity (training success)

top-down judgmental forecasting

organizational leaders rely on their experience and knowledge of their industry and company to make predictions about what future staffing levels will need to be top managers' estimates then become staffing goals for the lower levels in the organization

creating a sourcing plan 3. prioritize recruiting sources based on staffing goals and employee profiles

prioritize recruiting sources based on staffing goals and the results of the recruiting source sourcing nontraditional applicant pools (workers with disabilities; older workers; welfare recipients)

recruiter profiles

profile of skills, characteristics, and backgrounds of most effective recruiters for different positions (track applicant reactions to different recruiting styles and messages) recruiter should be someone who can relate to a targeted recruit and persuade him or her to apply and/or accept a job offer

realistic job preview

provide both positive and potentially negative information to job candidates strive to present an honest and accurate picture goal: provide objective information that job candidates can use to self-assess their fit with the job and the organization

transition analysis

quantitative technique to analyze internal labor markets and forecast internal labor supply simple but effective technique for analyzing an organization's internal labor market, which can be useful in answering recruits' questions about promotion paths and the likelihood of promotions in workforce planning can also forecast number of people who currently work for the organization likely to still be employed in various positions at some point in future does not account for multiple moves assumes employees have equal likelihood of moving (based on raw data)

desirable recruiter characteristics

recruiter is one of most important player in hiring process--setting standard for talent for company -familiarity with the job and organization -good listening skills -good communication skills -good social skills -intelligence -self confidence -extroversion -enthusiasm about the job and company -credibility

persistent talent shortage

reduce demand for talents that will be in short supply -by increasing their use of automation and technology -by redesigning jobs so that fewer people with the desired talent are needed and/or increase the supply of the qualifications it needs business process outsourcing: relocating an entire business function to an independent service provider

validity

refers to how well a measure assesses a given construct and the degree to which you can make specific conclusions or predictions based on observed scores will tell you how useful a measure is for a particular situation (accuracy)

objectivity

refers to the amount of judgment or bias involved in scoring an assessment measure scoring of objective measures is free of personal bias

test-retest reliability

reflects the repeatability of scores over time and the stability of the underlying construct being measured estimated by the correlation between two (or more) administrations of the same measure across different time or location on the same sample

employer brand

reflects what a company offers as an employer and helps manage internal and external perceptions of what it's like to work there

judgmental forecasting

relies on the experience and insights of people in the organization to predict future needs

confidence interval

represents the degree of confidence that a person's "true" score lies within their earned score plus or minus the standard error measurement, given some level of desired confidence

internet data mining 2. X-raying

searching for pages that are all on the same host

scatter plots

show graphically how two different variables are related what staffing levels should be changed as the factor changes correlation coefficients and regression analysis

external cost per hire

six basic elements account for 90% of the costs to hire to calculate the cost of external hiring 1. advertising expenses 2. agency and search firm fees 3. employee referral bonuses 4. recruiter and applicant travel costs 5. relocation costs 6. company recruiter costs (prorated salary and benefits if the recruiter performs duties other than staffing)

geographic targeting

sourcing recruits based on where they live -can focus on local labor market -can target individuals likely to find the firm's location attractive lower-level positions in an org are typically filled from the local labor market, and geographic boundaries tend to widen as the position moves up in org's hierarchy

staffing planning 1. how many people should we recruit?

staffing yields: the proportion of applicants moving from one stage of the hiring process to the next (reasonably consistent from year to year) hiring yield: the percent of applicants ultimately hired generate more applicants that number of positions open

multiple regression

statistical technique that predicts an outcome using one or more predictor variables --identifies the ideal weights to assign each predictor to maximize the validity of a set of predictors --analysis is based on each predictor's correlation with the outcome and the degree to which the predictors are themselves intercorrelated examines the effect of each predictor variable after statistically controlling for the effects of other predictors in the equation

face validity

subjective assessment of how well it seems to be related to the requirements of the job important to job applicants who tend to react negatively to assessment methods if they perceive them to be unrelated to the job or not face valid

future recruits

system can be valid but if the system is too long or onerous then applicants, particularly high-quality applicants, are more likely to drop out of consideration

external recruiting sourcers

target people from outside the firm 1. employee referrals 2. in-house recruiters: employees who rely on their own contacts and org's database of potential applicants 3. written advertisements 4. job and trade fairs 5. observation: watching people working similar jobs for other companies to evaluate potential fit with the organization 6. resume databases 7. career sites 8. online job boards 9. search firms 10. raiding competitors--poaching

measures relevant to staffing are those that assess:

the characteristics of the job (enables the creation of job requirements and job rewards matrices) aspects of the staffing system (number of days a job posting is run, where it is run, and the recruiting message) the characteristics of job candidates (ability or personality) staffing outcomes (performance or turnover)

global sourcing 1. integration

the coordination of a single global staffing strategy with the organization retaining adequate controls over local operations

validation

the cumulative and ongoing process of establishing the relatedness of a measure

validity generalization

the degree to which evidence of validity obtained in one situation can be generalized to another situation without further study based on meta-analysis no guarantee that the same validity will be found in an y specific workplace

global sourcing 2. differentiation

the need to acknowledge and respect the diversity of local country cultures and expectations and thus giving some latitude to local managers to tailor the strategy to meet the needs of their location

practical significance

the observed relationship is large enough to be of value in a practical sense irrelevant unless relationship is also statistically significant

distributive fairness

the perceived fairness of the hiring or promotion outcome will be low--not everyone will get the job or promotion they want

measurement

the process of assigning numbers according to some rule or convention to aspects of people, jobs, job success, or aspects of the staffing system

scoring

the process of assigning numerical values during measurement

Workforce Planning

the process of predicting an organization's future employment needs and the availability of current employees and external hires to meet those employment needs and execute the organization's business strategy foundation of strategic staffing--identifies and addresses future challenges to a firm's ability to get the right talent in place at the right time to execute it's business strategy goal--enable organization to attain its business goals and execute its strategy

raw scores

the unadjusted scores on a measure do not provide much information by itself

forecasting the external labor market

through their own observations and experiences (are the quality and quantity are applicants responding to job announcements improving or getting worse?) by monitoring labor market statistics generated by others

to evaluate a measure's reliability, consider:

type of measure type of reliability estimate reported context in which the measure will be used

benchmarkig

useful to compare an organization's staffing data with other similar organizations

trend analysis

uses past employment patterns to predict future needs any employment trends that are likely to continue can be useful in forecasting labor demand rarely used by itself in making labor demand forecasts

bottom-up judgmental forecasting

uses the input of lower-level managers in estimating staffing requirements based on supervisors' understanding of the business strategy, each level provides an estimate of their staffing needs to execute the strategy estimates are consolidated and modified as they move up the organization's hierarchy until top management formalizes the company's estimate of its future staffing needs into staffing goals

organization's time and cost

valid assessment system can have an unacceptably long time to fill or cost per hire

applicants

valid assessment system can result in adverse impact

current employees

valid assessment system may favor external applicants or not give all qualified employees an equal chance of applying for an internal position

sampling error

variability in sampling correlations due to chance address sampling error through statistical significance testing procedures

internet data mining 4. web crawlers

web sites that continually search for people with desirable talents and sell access to the sties to recruiters

determinant of effectiveness: 2. return on investment

whether the assessment method generates a financial return that exceeds the cost associated with it

determinant of effectiveness: 1. validity

whether the assessment method predicts the relevant components of job success

determinant of effectiveness: 5. adverse impact

whether the method can be used without discriminating against members of a protected class

determinant of effectiveness: 6. selection

whether the method has a low selection ratio selection ratio: the number of people hired divided by the number of applicants low selection ratio = lower % of applicants are hired

determinant of effectiveness: 4. usability

willingness and ability of people in the organization to use the method consistently and correctly

staffing planning 2. what resources do we need?

workload-driven forecasting: based on historical data on the average number of hires typically made per recruiter staffing efficiency driven forecasting: the total cost associated with the compensation of the newly hired employees