MANG 4469 Exam 2

Global Sourcing

Integration Differentiation Local employment agencies

Who Should Recruit?

Internal recruiters External recruiters Employees Hiring managers Recruiter profiles The recruiter should be able to relate to a targeted recruit and persuade him or her to apply and/or accept a job offer

Boolean searches

Internet search technique that allows a search to be narrowed by using special terms before the key words

Forecasting Labor Demand

It is a good idea to identify minimal as well as optimal staffing levels when analyzing labor demand. An organization's demand for labor depends on its forecasted business activity and its business needs, which depend on its business strategy.

Workforce Planning Process Step 5

Monitor, evaluate, and revise the forecasts and action plans. As the environment changes, forecasts and action plans may need to change as well.

Later in the recruiting process

More detailed information about the job's requirements, responsibilities, authority level, advancement potential, job and company stability, and the firm's values and culture Job offer details and company benefits

Neuroticism

is the personality trait of being emotional.

Conscientiousness

is the personality trait of being honest and hardworking. High scorers tend to follow rules and prefer clean homes. Low scorers may be messy and cheat others.

Extroversion

is the personality trait of seeking fulfillment from sources outside the self or in community. High scores tend to be very social while low scorers prefer to work on their projects alone.

Openness to Experience

is the personality trait of seeking new experience and intellectual pursuits. High scorers may day dream a lot. Low scorers may be very down to earth.

Networking sites

leveraging your personal connections to generate applicants

What resources do we need?

Workload-driven forecasting Staffing efficiency driven forecasting

Internal Recruiting sources

locate people who currently work for the company who would be good recruits for other positions

Internal Labor Market Forecasting Methods

- Judgment - Talent inventories - Replacement charts - Employee Surveys - Labor supply chain management

The Prince - Summary principles

- The life of a change oriented person is particularly challenging - Thus, it is particularly important for the change agent to establish themselves as powerful - Unfortunately, many leaders will have a difficult time during periods of change - Such is the cruel reality of life

The Prince - Summary principles

- Very action oriented - Do it by whatever means necessary - But "look" good while you are doing it - Make others dependent on you - But do not become dependent on any one else or leave anyone in position to challenge you - This does not mean you should be cruel - However, it does not mean you should strive to be loved - You can not isolate yourself from others but must pick your confidants carefully

The Prince - A historical background

- Written in 1513 (long time ago) - He had been a bureaucrat/advisor to rulers - Suddenly found himself without a job - Wrote The Prince and dedicated it to Lorenzo the Magnificent of the Medicis - Setting the stage for long-term power of a KING - Guaranteed never to be employed again - Even if following advice, could not admit it

Staffing Planning

1. How many people should we recruit? 2. What resources do we need? 3. How much time will it take to hire?

Workforce Planning Process Step 2

Articulate the firm's talent philosophy and strategic staffing decisions.

Creating a Sourcing Plan

1.) Profile desirable employees to identify promising sources 2.) Perform ongoing recruiting source effectiveness analyses by tracking 3.) Prioritize recruiting sources based on staffing goals and employee profiles

Transition Analysis

A quantitative technique used to analyze internal labor markets and forecast internal labor supply. A simple but often 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 as well as in workforce planning. Can also forecast the number of people who currently work for the organization likely to still be employed in various positions at some point in the future. The analysis is best performed for a limited number of jobs at a time to keep it easily interpretable.

Problem solving

Ability to accurately assess a problem and effectively arrive to an excellent solution: solve problems, find solutions or identify creative ideas. Employers are looking for analytical skills, critical thinking.

Interpersonal skills

Ability to get on with other people and work with them efficiently is considered as a key competency. Most jobs require employees to work in a team and/or have interactions with other peoples (client, colleague, directors,...).

Organizational skills

Ability to organize the work depending constraints (time, results, objectives, money, resources).

Ratio Analysis

Assumes that there is a relatively fixed ratio between the number of employees needed and certain business metrics. - Using historical patterns within the firm helps to establish a reasonable range for these ratios. - This process can be used for either justifying new positions or demonstrating the need for layoffs. Need consistent historical trends to calculate ratios.

Temporary Talent Shortages

Because higher salaries cost the organization more money throughout the new hire's tenure with the company, hiring inducements that last only as long as the talent shortage does are often better. Companies often turn to more expensive recruiting methods such as search firms, or lower their hiring standards so that more recruits are considered qualified. - Neither of these strategies is guaranteed to work - More expensive recruiting methods may quickly drain a recruiting budget without resulting in an acceptable hire - Lowering hiring standards decreases the quality of the company's workforce, which may not be acceptable Options include offering hiring incentives such as sign-on bonuses and retention bonuses such as stock options or cash to be paid after the employee has successfully worked with the company for a certain period of time.

The Role of Judgement

Because historical trends and relationships can change, it is usually best to supplement the more mechanical ratio, scatter plot, and trend forecasting methods with managerial judgment. The more mechanical methods can be used as a starting point and managerial input then used to modify the estimates.

Signaling

Because people often have limited information about organizations and jobs, in the absence of objective information they may rely on the recruiter's traits and behaviors as signals of aspects of both the company and the job opportunity. - A CEO involved in recruiting may signal a job's importance - A demographic minority recruiter may signal the firm's demographic diversity Recruiter behaviors affect applicant attraction indirectly through influencing applicant perceptions of job and organizational attributes.

Internet Data Mining

Boolean searches Flipping or slip searching Web crawlers Networking sites

Earlier in the recruiting process

Broad information about the job and company Information about the candidate's potential fit with the job duties and company

Return on Investment Analysis

Compare this amount with the value your company will gain to determine the return on the investment of adding the new position.

Workforce Planning Process Step 3

Conduct a workforce analysis.

How much time will it take to hire?

Continuous recruiting Batch recruiting

With SJTs, recruiters can measure the following dimensions

Decision making Problem Solving Interpersonal Skills Organizational skills

Workforce Planning Process Step 4

Develop and implement action plans. Develop action plans to address any gaps between labor demand and labor supply forecasts. - The action plans should be consistent with the firm's talent philosophy, and can include recruiting, retention, compensation, succession management, and training and development. - Action plans can be short-term or long-term, depending on the firm's needs and the predictability of the environment.

Three Types of Fairness

Distributive Procedural Interactional

Permanent Employee Surplus

Early retirement incentives, layoffs, and not filling vacated positions can all reduce an employer's headcount, but with a cost. - Early retirement programs can result in the most skilled and productive employees leaving the organization. - Layoffs can damage workforce morale and hurt the firm's reputation as an employer. - Not filling open positions can leave key positions in the organization vacant or understaffed. Action plans to address a persistent employee surplus may also involve reassignments, hiring freezes, and steering employees away from careers in that position to reduce the need for future layoffs. Retraining employees to fill other jobs in the firm can help bring labor supply and demand into balance.

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.

Big 5 Personalities

Extroversion (E) Agreeableness (A) Conscientiousness (C) Neuroticism (N) Openness to Experience (O)

Return on Investment Analysis

First assign dollar values to the benefits you expect from a new hire for the period of time most appropriate for the position and your organization. - How much revenue during the period will be directly generated as a result of this position? - How much money per period will this position save your organization in terms of increased efficiency, and how much value will it add in greater productivity, quality, or customer service?

Workforce Planning Process Step 1

Identify the business strategy.

Persistent Talent Shortage

If it is likely that a worker shortage will last a number of years, an organization must: Reduce its demand for the talents that will be in short supply - By increasing their use of automation and technology, and by redesigning jobs so that fewer people with the desired talent are needed. And/or increase the supply of the qualifications it needs - This is not a fast or practical solution for most organizations.

Temporary Employee Surplus

If slowdowns are cyclical or happen frequently, using temporary or contingent workers who are the 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 six months to be cost-effective due to severance costs, greater unemployment insurance premiums, temporary productivity declines, and the rehiring and retraining process. - Losing the investments the organization has already made in hiring and training the laid off workers can also be costly. Alternatives to layoffs include across-the-board salary cuts or a reduction in work hours, or reallocating workers to expand other areas of the business.

Decision making

In all jobs, employees are forced to take decisions. Sometimes, it can be difficult decisions, often under time pressure and/or stress. Employers need to know that the people they hire are competent enough to take good decisions in all situations.

Judgemental Forecasting

Relies on the experience and insights of people in the organization to predict future needs. - Top down - Bottom up

Web Crawlers

Sites that continually search for people with desirable talents and sell access to recruiters

Situational Judgment Tests

Situational Judgment Tests (also abbreviated SJT or SJTs) are a type of aptitude/psychometric test that measures behaviors and attitude of a person in work related situations. This type of test presents candidates challenging situations that they might experience in the job for which they are applying, to measure decision making skills. For each situation, several possible actions are presented and candidates have to identify the most and the least effective answers to solve the problem described

How many people should we recruit?

Staffing yields Hiring Yields

Internal Recruiting Sources

Succession management Talent inventories Employee development Internal job posting systems Employee referrals

Components of Emotional Intelligence

The ability to diagnose and recognize your own emotions. The ability to control your own emotions. The ability to recognize and diagnose the emotions of others. The ability to respond appropriately to emotional cues.

Labor Supply Chain Management

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 - Businesses use multiple suppliers so that they can quickly change and scale to meet changing business needs. - Supply chain management principles of inventory management, planning, and optimization can be easily applied to people. - Software and services allow companies to match employees' expertise and knowledge to business needs and deploy the right people just as assets would be deployed in a supply chain.

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.

Return on Investment Analysis

Then compare this amount with the cost of adding the new hire. - Compute the cost of hiring, including advertising the position, interviewing, screening, travel, relocation, and training expenses. - Add this to the compensation for the new position during the time period to get your initial investment.

Trend Analysis

Uses past employment patterns to predict future needs. - For example, if a company has been growing five percent annually for the last eight years, it might assume that it will experience the same five percent annual growth for the next few years. Any employment trends that are likely to continue can be useful in forecasting labor demand. Because so many factors can also affect staffing needs, including competition, the economic environment, and changes in how the company gets its work done (e.g., automation might improve productivity), trend analysis is rarely used by itself in making labor demand forecasts.

Organizational Image

a general impression based on both feelings and facts. - What comes to mind when you think of Nieman-Marcus, Goldman Sachs, and Tiffany's? - 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. - Organizational images differ across subgroups of individuals.

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

Employer Image

attitudes toward and perceptions of the organization as an employer - Employer brands reinforce the employer image - Newer or lesser-known organizations with weak or nonexistent images among job seekers may have greater difficulty attracting recruits using passive recruitment sources such as newspaper advertisements, than organizations that are more widely known and favorably thought of.

Workload-driven forecasting

based on historical data on the average number of hires typically made per recruiter

Procedural

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

Local Employment Agencies

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

Continuous recruiting

can shorten the hiring timeline

Passive Job seekers

currently employed and are not actively seeking another job, but could be tempted by the right opportunity - Many high-quality candidates are usually in this group, although it may be difficult to find them and interest them in your job opportunity

Interactional

fairness of the interpersonal treatment and amount of information received during the hiring process - Honesty, respect, recruiter warmth, and effectiveness of information

Sourcing

identifying and locating high potential recruits Done for internal as well as external job candidates Involves the analysis of different possible sources of recruits to identify those best able to meet the firm's staffing goals

Flipping or Flip searching

identifying people who link to a web site E.g., link:microsoft.com AND (url:resume OR title:resume)

spillover effect

indirect or unintended consequences of an action Most job candidates do not get the job or promotion - so what happens next? - If they were forced to wait extended periods for pre-scheduled interviews, met unprepared and distracted interviewers, found the selection process unfair, and were not made to feel important or welcome, will they still buy your products? Apply for another job with you in the future? Tell their friends how impressed they were with your firm and influence them to become customers or applicants?

top-down approach

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. - In some cases, particularly when companies are facing financial difficulties or restructuring, budgets may determine these headcount numbers.

Semi-passive job seekers

people who are interested in a new position but only occasionally look actively for one

Active Job seekers

people who need a job and are actively looking for information about job openings

Distributive

perceived fairness of the outcome - Did you get the job or promotion?

Realistic Job Previews

provide both positive and potentially negative information to job candidates.

Batch recruiting

recruiting a new applicant pool each time

Agreeableness

reflects much individuals adjust their behavior to suit others. High scorers are typically polite and like people. Low scorers tend to "tell it like it is."

Geographic Targeting

sourcing recruits based on where they live - Can focus on the local labor market - Can focus on labor markets in locations similar to the organization's location in terms of city size, cost of living, climate, recreational opportunities, etc. - Can target individuals likely to find the firm's location attractive Lower-level positions in an organization are typically filled from the local labor market, and the geographic boundaries tend to widen as the position moves up the organization's hierarchy

Talent Inventories

summarize each employee's skills, competencies, and qualifications

External recruiting sources

target people outside the firm

Integration

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

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

Hiring Yields

the percent of applicants ultimately hired (also called selection ratios)

Staffing Yields

the proportion of applicants moving from one stage of the hiring process to the next

Staffing efficiency driven forecasting

the total cost associated with the compensation of the newly hired employee

Employee Surveys

to identify the potential for increased turnover in the future

Bottom-up approach

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. The 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.

Replacement Charts

visually shows each of the possible successors for a job and summarizes their present performance, promotion readiness, and development needs