Kaiser nyman v first choice telemarketing settlement

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.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. (FROM A DECLARATION OF PRINCIPLES JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS.)

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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

www.mhhe.com

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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 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 Com pany 421

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Contents xvii

Developing a Lawful Application Blank 422

Endnotes 424

C H A P T E R N I N E External Se lection 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 for mance Tests and Work

Samples 453 Situational Judgment Tests 456 Integrity Tests 459 Interest, Values, and Preference

Inventories 464 Structured Interview 466 Se lection 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 Se lection

Procedures 488 Se lection 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

C H A P T E R T E N Internal Se lection 513 Learning Objectives and Introduction 515

Learning Objectives 515 Introduction 515

Preliminary Issues 516 The Logic of Prediction 516 Types of Predictors 517 Se lection 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 Se niority and Experience 526 Job Knowledge Tests 527 Per for mance 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 Se lection 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

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xviii Contents

PA R T F I V E

Staffing Activities: Employment 553

C H A P T E R E L E V E N 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 Pro cess 572 Consequences of Cut Scores 573 Methods to Determine Cut Scores 574

Methods of Final Choice 579 Random Se lection 579 Ranking 579 Grouping 580 Ongoing Hiring 580

Decision Makers 581 Orga nizational Leaders 581 Human Resource Professionals 582 Man ag ers 583 Coworkers 583

Legal Issues 584 Uniform Guidelines on Employee Se lection

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

Endnotes 591

C H A P T E R T W E LV E Final Match 595 Learning Objectives and Introduction 597

Learning Objectives 597 Introduction 597

Employment Contracts 598 Requirements for an Enforceable

Contract 598 Parties to the Contract 599 Form of the Contract 600 Disclaimers 602 Contingencies 603

Job Offers 603 Strategic Approach to Job Offers 604 Job Offer Content 606

Job Offer Pro cess 615 Formulation of the Job Offer 615 Pre sen ta tion of the Job Offer 622 Timing of the Offer 623 Job Offer Ac cep tance and Rejection 623 Reneging 624

New Employee Orientation and Socialization 626

Orientation 627 Socialization 627 Long- Term Adjustment 631 Examples of Programs 632

Legal Issues 633 Employment Eligibility Verification 633 Negligent Hiring 634 Employment- at- Will 635

Summary 635 Discussion Questions 636 Ethical Issues 637 Applications 637

Making a Job Offer 637

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Contents xix

Evaluating a Hiring and Variable- Pay Plan 639

Endnotes 641

PA R T S I X

Staffing System and Retention Management 647

C H A P T E R T H I R T E E N Staffing System Management 649 Learning Objectives and Introduction 650

Learning Objectives 650 Introduction 650

Design and Administration of Staffing Systems 651

Defining the Mission of Staffing 651 Orga nizational Arrangements 652 Policies and Procedures 655 Human Resource Information

Systems 657 Outsourcing 660

Evaluation of Staffing Systems 663 Staffing Pro cess 663 Staffing Pro cess Results 666 Calculating Staffing Metrics 672

Legal Issues 673 Rec ord Keeping and Privacy 673 EEO Report 675 Legal Audits 675 Training for Man ag ers and

Employees 677 Dispute Resolution 678

Summary 680 Discussion Questions 681 Ethical Issues 681 Applications 681

Learning About Jobs in Staffing 681 Evaluating Staffing Pro cess Results 682

Endnotes 683

C H A P T E R F O U R T E E N Retention Management 687 Learning Objectives and Introduction 689

Learning Objectives 689 Introduction 689

Turnover and Its Causes 690 Nature of the Prob lem 690 Types of Turnover 690 Causes of Turnover 692

Analy sis of Turnover 695 Mea sure ment 695 Reasons for Leaving: Self- Report 697 Reasons for Leaving: Predictive

Analytics 699 Costs and Benefits 700

Retention Initiatives: Voluntary Turnover 707

Desirability of Leaving 708 Ease of Leaving 713 Alternatives 714 Current Practices and Deciding to Act 715

Retention Initiatives: Discharge 720 Per for mance Management 720 Progressive Discipline 725

Retention Initiatives: Downsizing 726 Weighing Advantages and

Disadvantages 726 Staffing Levels and Quality 727 Alternatives to Downsizing 728 Employees Who Remain 728

Legal Issues 730 Separation Laws and Regulations 730 Per for mance Appraisal 730

Summary 731 Discussion Questions 733 Ethical Issues 733 Applications 734

Managerial Turnover: A Prob lem? 734 Retention: Deciding to Act 735

Endnotes 737

Name Index 743 Subject Index 753

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STAFFING ORGANIZATIONS Ninth Edition

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The Staffing Organizations Model

Organization

Mission Goals and Objectives

Organization Strategy

seitivitcA gniffatS eroCseitivitcA troppuS

HR and Sta�ng Strategy

Sta�ng Policies and Programs

Sta�ng System and Retention Management

Legal compliance Planning Job analysis and rewards

Recruitment: external, internal Selection: measurement, external, internal Employment: decision making, final match

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PART ONE

The Nature of Staffing

C H A P T E R O N E Staffing Models and Strategy

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CHAPTER ONE

Staffing Models and Strategy

Learning Objectives and Introduction Learning Objectives Introduction

The Nature of Staffing The Big Picture Definition of Staffing Implications of Definition Staffing System Examples

Staffing Models Staffing Quantity: Levels Staffing Quality: Person/Job Match Staffing Quality: Person/Or ga ni za tion Match Staffing System Components Staffing Organ izations

Staffing Strategy Staffing Levels Staffing Quality

Staffing Ethics

Plan for the Book

Summary

Discussion Questions

Ethical Issues

Applications Staffing for Your Own Job Staffing Strategy for a New Plant

Endnotes

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6 PART ONE The Nature of Staffing

LEARNING OBJECTIVES AND INTRODUCTION

Learning Objectives

• 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 organ izations model and how its vari ous 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 orga nizational function concerned with the acquisition, deploy­ ment, and retention of the organ ization’s workforce. As we note in this chapter and throughout the book, staffing is arguably the most critical function under lying orga­ nizational effectiveness, because “the people make the place,” labor costs are often the highest orga nizational 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 vari ous facets of staffing. The first model shows how projected workforce head­ count requirements and availabilities are compared to determine the appropriate staffing level for the organ ization. The next two models illustrate staffing quality, which refers to match­ ing a person’s qualifications with the requirements of the job or organ ization. The person/job match model is the foundation of all staffing activities; the person/ or ga ni za tion match model shows how person/job matching could extend to how well the person will also fit with the organ ization. The core staffing components model identifies recruitment, se lection, and employment as the three key staff­ ing activities, and it shows that both the organ ization and the job applicant inter­ act in these activities. The final model, staffing organ izations, provides the entire framework for staffing and the structure of this book. It shows that organ izations, human resources (HR), and staffing strategy interact to guide the conduct of staff­ ing support activities ( legal compliance, planning, and job analy sis) and core staff­ ing activities (recruitment, se lection, and employment); employee retention and staffing system management are shown to cut across both types of activities.

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CHAPTER ONE Staffing Models and Strategy 7

Staffing strategy is then explored in detail by identifying and describing a set of 13 strategic staffing decisions that confront any organ ization. Several of the deci­ sions 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 con­ duct 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 pres­ sures are also made.

Fi nally, 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

Organ izations 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 organ­ ization’s human capital. The organ ization’s workforce is thus a stock of human capital that it acquires, deploys, and retains in pursuit of orga nizational outcomes such as profitability, market share, customer satisfaction, and environmental sus­ tainability. Staffing is the orga nizational function used to build this workforce through such systems as staffing strategy, HR planning, recruitment, se lection, employment, and retention.

At the national level, the collective workforces of US organ izations 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 pro cess 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, service­ providing 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 se lection and assessment, staffing is big business for both organ izations and job seekers.2

For most organ izations, a workforce is an expensive proposition and cost of doing business. It is estimated that an average organ ization’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 organ izations in

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8 PART ONE The Nature of Staffing

labor­ intensive industries— the service­ providing as opposed to goods­ producing industries— such as retail trade, information, financial ser vices, professional and business ser vices, education, health care, and leisure and hospitality. Since service­ providing industries now dominate our economy, matters of employee cost and whether the organ ization is acquiring a high­ quality 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 organ ization. Organ izations that deliver superior customer ser vice, much of which is driven by highly knowledgeable employees with fine­ tuned customer ser vice skills, have a definite and hopefully long­ term advantage over their competi­ tors. The competitive advantage derived from such human capital has impor tant financial implications.

In addition to direct bottom­ line implications, an organ ization’s focus on cre­ ating an effective se lection system also has indirect implications for a competi­ tive advantage by enhancing employees’ well­ being and retention. One recent study showed that employees who perceive that their com pany uses effective se lection practices such as formal se lection tests and structured job interviews (practices that we will discuss in this book) are more committed to their organ­ izations. In turn, those higher levels of commitment lead to more helping or citi­ zenship be hav iors on the part of employees, as well as stronger intentions to remain employed, both of which ultimately contribute to an organ ization’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 pro cess. 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., simulation­ based training and serious games); and the advanced scoring and report­ ing of assessments (e.g., electronic scoring and reporting). Although these changes are often financially sound and efficient benefits for organ izations, this new para­ digm in staffing is not without its limitations, including the potential threat of reduced effectiveness due to decreased face­ to­ face 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 “tech­ nology effect” suggests that certain technological advancements may be viewed with rose­ colored glasses, even without proper evaluation of their effectiveness.6

Thus, organ izations are increasingly recognizing the value creation that can occur through staffing. Quotes from several orga nizational leaders attest to this, as shown in Exhibit 1.1. Of course, it should also be noted that effective staffing involves a series of trade­ offs in practice, such as between customization and con­ sistency or wide reach and coherence.7

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CHAPTER ONE Staffing Models and Strategy 9

“Staffing is absolutely critical to the success of every company. To be competitive in today’s economy, companies need the best people to create ideas and execute them for the organization. Without a competent and talented workforce, organizations will stagnate and eventually perish. The right employees are the most important resources of companies today.”a

Gail Hyland- Savage, chief operating officer Michaelson, Connor & Boul—real estate and marketing

“At most companies, people spend 2% of their time recruiting and 75% managing their recruiting mistakes.”b

Richard Fairbank, CEO Capital One

“I think about this in hiring, because our business all comes down to people. . . . In fact, when I’m interviewing a senior job candidate, my biggest worry is how good they are at hiring. I spend at least half the interview on that.”c

Jeff Bezos, CEO Amazon.com—Internet merchandising

“We missed a really nice nursing rebound . . . because we just didn’t do a good job hiring in front of it. Nothing has cost the business as much as failing to intersect the right people at the right time.”d

David Alexander, president Soliant Health—health care

“Organization doesn’t really accomplish anything. Plans don’t accomplish anything, either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.”e

Gen. Colin Powell (Ret.) Former US secretary of state

EXHIBIT 1.1 The Importance of Staffing to Organizational Leaders

aG. Hyland- Savage, “General Management Perspective on Staffing; The Staffing Commandments,” in N. C. Burkholder, P. J. Edwards, Jr., and L. Sartain (eds.), On Staffing (Hoboken, NJ: Wiley, 2004), p. 280. bJ. Trammell, “CEOs Must Own Recruiting: 10 Rules for Building a Top-Notch Function,” Forbes, Apr. 17, 2013 (www.forbes.com/sites/joeltrammell/2013/04/17/ceos-must-own-recruiting-10-rules-for -building-a-top-notch-function). cG. Anders, “Taming the Out- of-Control In- Box,” Wall Street Journal, Feb. 4, 2000, p. 81. dJ. McCoy, “Executives’ Worst Mistakes in Staffing,” Staffing Industry Review, Sept. 2010, pp. 1–2. eC. Powell, “A Leadership Primer: Lesson 8,” Department of the Army (www.think-energy.net/Colin -Powell-on-Leadership.pdf ).

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10 PART ONE The Nature of Staffing

Definition of Staffing

The following definition of staffing is offered and will be used throughout this book:

Staffing is the pro cess of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organ ization’s effectiveness.

This straightforward definition contains several implications that are identified and explained next.

Implications of Definition

Acquire, Deploy, Retain An organ ization’s staffing system must guide the acquisition, deployment, and retention of its workforce. Acquisition activities involve external staffing systems that govern the initial intake of applicants into the organ ization. These involve planning for the numbers and types of people needed, establishing job require­ ments in the form of the qualifications or knowledge, skills, abilities, and other characteristics (KSAOs) needed to perform the job effectively, establishing the types of rewards the job will provide, conducting external recruitment campaigns, using se lection tools to evaluate the KSAOs that applicants possess, deciding which applicants are the most qualified and will receive job offers, and putting together job offers that applicants will hopefully accept.

Deployment refers to the placement of new hires in the actual jobs they will hold, something that may not be entirely clear at the time of hire, such as the specific work unit or geographic location. Deployment also encompasses guiding the movement of current employees throughout the organ ization through internal staffing systems that handle promotions, transfers, and new proj ect assignments. Internal staffing systems mimic external staffing systems in many re spects, such as planning for promotion and transfer vacancies, establishing job requirements and job rewards, recruiting employees for promotion or transfer opportunities, evaluating employees’ qualifications, and making job offers to employees for new positions.

Retention systems seek to manage the inevitable flow of employees out of the organ ization. Sometimes these outflows are involuntary on the part of the employee, such as through layoffs or the sale of a business unit to another organ­ ization. Other outflows are voluntary in that they are initiated by the employee, such as leaving the organ ization to take another job (a potentially avoidable turn­ over by the organ ization) or leaving to follow one’s spouse or partner to a new geo­ graphic location (a potentially unavoidable turnover). Of course, no organ ization can or should seek to completely eliminate employee outflows, but it should try to minimize the types of turnover in which valued employees leave for greener

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CHAPTER ONE Staffing Models and Strategy 11

pastures elsewhere— namely, voluntary­ avoidable turnover. Such turnover can be very costly to the organ ization, as can turnover due to employee discharges and downsizing. Through vari ous retention strategies and tactics, the organ ization can combat these types of turnover, seeking to retain those employees it thinks it can­ not afford to lose.

Staffing as a Pro cess or System Staffing is not an event, as in, “We hired two people today.” Rather, staffing is a pro­ cess that establishes and governs the flow of people into the organ ization, within the organ ization, and out of the organ ization. Organ izations use multiple inter­ connected systems to manage the people flows. These include planning, recruit­ ment, se lection, decision making, job offer, and retention systems. Occurrences or actions in one system inevitably affect other systems. If planning activities show a forecasted increase in vacancies relative to historical standards, for example, the recruitment system will need to gear up for generating more applicants than previ­ ously, the se lection system will have to handle the increased volume of applicants needing to be evaluated in terms of their KSAOs, decisions about job offers may have to be sped up, and the job offer packages may have to be sweetened to entice the necessary numbers of new hires. Further, steps will have to be taken to retain the new hires and thus avoid having to repeat the above experiences in the next staffing cycle.

Quantity and Quality Staffing the organ ization requires attention to both the numbers (quantity) and the types (quality) of people brought into, moved within, and retained by the organ­ ization. The quantity ele ment refers to having enough people to conduct business, and the quality ele ment refers to having people with the requisite KSAOs so that jobs are performed effectively. It is impor tant to recognize that it is the combina­ tion of sufficient quantity and quality of labor that creates a maximally effective staffing system.

Orga nizational Effectiveness Staffing systems exist and should be used to contribute to the attainment of orga­ nizational goals such as survival, profitability, and growth. A macro view of staff­ ing like this is often lost or ignored because most of the day­ to­ day operations of staffing systems involve micro activities that are procedural, transactional, and routine in nature. While these micro activities are essential for staffing systems, they must be viewed within the broader macro context of the positive impacts staffing can have on orga nizational effectiveness. There are many indications of this critical role of staffing.

Leadership talent is at a premium, with very large stakes associated with new leader acquisition. Sometimes leadership talent is bought and brought from the

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12 PART ONE The Nature of Staffing

outside to hopefully execute a reversal of fortune for the organ ization or a busi­ ness unit within it. For example, in 2012, Yahoo brought in Marissa Mayer, a for­ mer executive at Google, to turn around the aging tech giant. Organ izations also acquire leaders to start new business units or ventures that will feed orga nizational growth. The flip side of leadership acquisition is leadership retention. A loom­ ing fear for organ izations is the unexpected loss of a key leader, particularly to a competitor. The exiting leader carries a wealth of knowledge and skill out of the organ ization and leaves a hole that may be hard to fill, especially with someone of equal or higher leadership stature. The leader may also take other key employees along, thus increasing the exit impact.