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STAFFING ORGAN IZATIONS Ninth Edition

Herbert G. Heneman III University of Wisconsin– Madison

Timothy A. Judge The Ohio State University

John D. Kammeyer- Mueller University of Minnesota

Pangloss Industries Columbus, OH

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STAFFING ORGANIZATIONS, NINTH EDITION

Published by Pangloss Industries, Inc., 4130 Mountview Road, Columbus, OH 43220, in collaboration with McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2019 by Pangloss Industries, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2015, 2012, and 2009. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of the publisher, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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ISBN 978-1-259-75655-9 (bound edition) MHID 1-259-75655-6 (bound edition) ISBN 978-1-260-14133-7 (loose-leaf edition) MHID 1-260-14133-0 (loose-leaf edition)

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Note to the Instructor: Pangloss and McGraw-Hill Education have combined their respective skills to bring Staffing Organizations to your classroom. This text is marketed and distributed by McGraw-Hill Education. For assistance in obtaining information or supplementary material, please contact your McGraw-Hill Education sales representative or the cus- tomer services division of McGraw-Hill Education at 800-338-3987.

Dedication

To Susan, Jill, and Mia

Compositor: Westchester Publishing Services

Address editorial correspondence to: Timothy A. Judge Pangloss Industries 4130 Mountview Road Columbus, OH 43220 judge.56@osu.edu

Library of Congress Cataloging-in-Publication Data 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. Description: Ninth edition. | Columbus, OH : Pangloss Industries, [2019] Identifiers: LCCN 2017054981 | ISBN 9781259756559 (hardcover : alk. paper) Subjects: LCSH: Employees—Recruiting. | Employee selection. Classification: LCC HF5549.5.R44 H46 2019 | DDC 658.3/11—dc23 LC record available at https://lccn.loc.gov/2017054981

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iii

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 se nior 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 motiva- tion. He is currently investigating the design and effectiveness of teacher per for- mance 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 se nior author of three other textbooks on human resource management. Herb is a Fellow of the Society for Industrial and Orga- nizational Psy chol ogy, the American Psychological Association, and the Acad emy of Management. He is also the recipient of career achievement awards from the Human Resources Division of the Acad emy 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 com- pany in Notre Dame’s Innovation Park. Prior to receiving his PhD at the University of Illinois, Tim was a man ag er 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 be hav iors, staffing, and job attitudes. Tim is a former program chair for the Society for Industrial and Orga nizational Psy chol ogy and a past chair of the Human Resources Division of the Acad emy of Manage- ment. He has also served on the Acad emy of Management Board of Governors. Tim is a Fellow of the American Psychological Association, the Society for Indus- trial and Orga nizational Psy chol ogy, the American Psychological Society, and the Acad emy of Management.

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iv Author Profiles

John D. Kammeyer- Mueller is the Curtis L. Carlson Professor of Industrial Rela- tions in the Department of Work and Organ izations, Carlson School of Man- agement, University of Minnesota. John’s primary research interests include the areas of orga nizational socialization and employee adjustment, personality and the stress pro cess, employee retention, and career development. He has taught courses related to orga nizational staffing at the undergraduate, master’s, and doc- toral levels. His research work has appeared in Acad emy of Management Journal; the Journal of Applied Psy chol ogy; Personnel Psy chol ogy; the Journal of Manage- ment; and the Journal of Orga nizational Be hav ior, among other outlets. He serves on the editorial boards of the Journal of Applied Psy chol ogy; Personnel Psy chol ogy; and Orga nizational 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 proj ects of interest to their professional membership.

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v

PREFACE

There has been a continual effort to incorporate strategic orga nizational con-cerns into every edition of the textbook. The ninth edition of Staffing Organ-izations develops these concepts significantly. Based on ideas from leading human resources thinkers, new discussions describe how to incorporate orga- nizational strategy into every part of the staffing pro cess. 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 tal- ent 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 prac- tices. 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 pro cess 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 infor- mation systems for tasks like recruitment, se lection, and forecasting is now thor- oughly 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 staff- ing 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 manage- ment but an integral part of the pro cess.

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

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vi Preface

• 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 in de pen- dent 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 ge ne tic information

• Updated information on the protected characteristics of sexual orientation and gender identity

Chapter Three: Planning

• Increased emphasis on orga nizational culture in the planning pro cess • 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 Analy sis and Rewards

• Greater emphasis on implementing competency- based job analy sis • New figure showing the pro cess of job requirements job analy sis • New figure showing the pro cess of competency- based job analy sis • 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

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Preface vii

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 recruit-

ment pro cess • Increased discussion of social media effects on recruitment • Revised and updated pre sen ta tion of recruitment messages • Increased treatment of targeted recruitment techniques • New discussion of the transition from recruitment to se lection • 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 pro cess

• Revised and updated pre sen ta tion of recruitment messages • Revised and updated discussion of replacement and succession plans • New discussion of the transition from recruitment to se lection • New material on best- practice promotion ideas from the EEOC • New discussion of barriers to upward mobility and improving upward mobility

Chapter Seven: Mea sure ment

• Updated example of the nominal level of mea sure ment • New material on biases in subjective mea sure ment 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 evi-

dence should be amassed and interpreted together • New material on the situational appropriateness of predictive versus concur-

rent validation designs • Revised definition and discussion of content validity • Updated illustrative study of the Mary land Department of Transportation • New material reviewing the meta- analytic work on prior validity generaliza-

tion and the gaps in our current understanding • New example using insights from Glassdoor to highlight practical consider-

ations in staffing • New discussion of mobile and Internet- based test administration

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viii Preface

Chapter Eight: External Se lection I

• New material on applicant reactions toward per for mance tests and the valid- ity 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 intelli-

gence, an area of extracurricular activities that may be impor tant for staffing • New material on how experience is multidimensional, with many characteris-

tics and levels of analy sis • 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 Se lection 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, includ-

ing 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 be hav ior is not desir-

able 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

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Preface ix

• 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 mea sure ment 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 com- parisons, validity, and interviewer characteristics

• New material on the National Football League (NFL) and how OCBs matters less to outsiders (e.g., external con sul tants) than to insiders in team se lection

• Updated statistics and figures on drug testing • Revised material on the Uniform Guidelines on Employee Se lection Procedures • New discussion of marijuana and other drug testing

Chapter Ten: Internal Se lection

• 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 po liti cal 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 orga nizational 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

analy sis and other functional areas of the business • New exhibit covering the role of decision makers in se lection • New section covering differential weighting techniques for predictors • Updated and revised discussion of choosing among weighting schemes • Streamlined discussion of test score banding

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x Preface

Chapter Twelve: Final Match

• New section on long- term adjustment and the pro cess 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 orga nizational goals

and pro cesses • 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 orga nizational 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 reor ga ni za tion 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

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Preface xi

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 pub- lishing team—in par tic u lar, 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 Ser- vices 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 prepa- ration. Fi nally, 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 Organ izations, please contact us. We will be happy to hear from you.

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xiii

CONTENTS

PA R T O N E

The Nature of Staffing 3

C H A P T E R O N E 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/Or ga ni za tion

Match 18 Staffing System Components 20 Staffing Organ izations 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

PA R T T WO

Support Activities 45

C H A P T E R T W O Legal Compliance 47 Learning Objectives and Introduction 49

Learning Objectives 49 Introduction 49

The Employment Relationship 50 Employer– Employee 50 In de pen dent 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

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xiv Contents

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 Ge ne tic 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

C H A P T E R T H R E E Planning 91 Learning Objectives and Introduction 93

Learning Objectives 93 Introduction 93

Internal and External Influences 94 Orga nizational Strategy 94 Orga nizational Culture 95 Labor Markets 97 Technology 102

Human Resource Planning 103 Pro cess and Example 103 Initial Decisions 105 Forecasting HR Requirements 108 Forecasting HR Availabilities 111 Reconciliation and Gaps 119

Staffing Planning 121 Staffing Planning Pro cess 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 Analy sis and Forecasting 145 Deciding Whether to Use Flexible

Staffing 145 Endnotes 147

C H A P T E R F O U R Job Analy sis and Rewards 153 Learning Objectives and Introduction 155

Learning Objectives 155 Introduction 155

The Need for Job Analy sis 156 Types of Job Analy sis 156 The Changing Nature of Jobs 157

Job Requirements Job Analy sis 159 Overview 159 Job Requirements Matrix 160 Job Descriptions and Job

Specifications 168 Collecting Job Requirements

Information 169 Competency- Based Job Analy sis 177

Overview 179

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Contents xv

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 Analy sis 197

Maintaining Job Descriptions 198 Endnotes 199

PA R T T H R E E

Staffing Activities: Recruitment 203

C H A P T E R F I V E 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 Organ ization and Administration 213

Applicant Reactions 219 Reactions to Job and Orga nizational

Characteristics 220 Reactions to Recruiters 220 Reactions to the Recruitment Pro cess 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 Orga nizational Recruitment Sources 242 Recruitment Metrics 248

Transition to Se lection 251 Legal Issues 252

Definition of a Job Applicant 252 Affirmative Action Programs 254 Electronic Recruitment 254 Job Advertisements 257 Fraud and Misrepre sen ta tion 257

Summary 258 Discussion Questions 259 Ethical Issues 259 Applications 260

Improving a College Recruitment Program 260

Internet Recruitment 262 Endnotes 263

C H A P T E R S I X 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 Organ ization 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 Se lection 295 Legal Issues 295

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xvi Contents

Affirmative Action Programs 296 Bona Fide Se niority 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

PA R T F O U R

Staffing Activities: Se lection 309

C H A P T E R S E V E N Mea sure ment 311 Learning Objectives and Introduction 313

Learning Objectives 313 Introduction 313

Importance and Use of Mea sures 314 Key Concepts 315

Mea sure ment 315 Scores 319 Correlation Between Scores 322

Quality of Mea sures 327 Reliability of Mea sures 328 Validity of Mea sures 336 Validation of Mea sures 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 Analy sis 364

Endnotes 367

C H A P T E R E I G H T External Se lection 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 Se lection Plan 376 Se lection Sequence 376

Initial Assessment Methods 379 Résumés and Cover Letters 379 Application Blanks