Manager judgment is an important method for staffing in

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STAFFING ORGANIZATIONS 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 MHID 1-259-75655-6

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Pangloss Industries 4130 Mountview Road Columbus, OH 43220 judge.56@osu.edu

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 customer services division of McGraw- Hill Education at 800-338-3987.

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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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mailto://judge.56@osu.edu
https://lccn.loc.gov/2017054981
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Dedication To Susan, Jill, and Mia

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AUTHOR PROFILES

Herbert G. Heneman III is the Dickson-Bascom Professor Emeritus in the Management and Human Resources Department, School of Business, University of Wisconsin–Madison. He also serves as a senior researcher at the Wisconsin Center for Educational Research. Herb has been a visiting faculty member at the University of Washington and the University of Florida, and he was the University Distinguished Visiting Professor at The Ohio State University. His research is in the areas of staffing, performance management, compensation, and work motivation. He is currently investigating the design and effectiveness of teacher performance management and compensation systems. Herb was on the board of directors of the Society for Human Resource Management Foundation and served as its director of research. He is the senior author of three other textbooks on human resource management. Herb is a Fellow of the Society for Industrial and Organizational Psychology, the American Psychological Association, and the Academy of Management. He is also the recipient of career achievement awards from the Human Resources Division of the Academy of Management and from the Society for Human Resource Management.

Timothy A. Judge is the Joseph A. Alutto Chair in Leadership Effectiveness and executive director of the Fisher Leadership Initiative in the Department of Management and Human Resources, Fisher College of Business, The Ohio State University. Tim is also the director of research for Stay Metrics, a start-up company in Notre Dame’s Innovation Park. Prior to receiving his PhD at the University of Illinois, Tim was a manager for Kohl’s department stores. Tim has served on the faculties of Cornell University, University of Iowa, University of Florida, and University of Notre Dame. Tim’s teaching and research interests are in the areas of personality, leadership and influence behaviors, staffing, and job attitudes. Tim is a former program chair for the Society for Industrial and

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Organizational Psychology and a past chair of the Human Resources Division of the Academy of Management. He has also served on the Academy of Management Board of Governors. Tim is a Fellow of the American Psychological Association, the Society for Industrial and Organizational Psychology, the American Psychological Society, and the Academy of Management.

John D. Kammeyer-Mueller is the Curtis L. Carlson Professor of Industrial Relations in the Department of Work and Organizations, Carlson School of Management, University of Minnesota. John’s primary research interests include the areas of organizational socialization and employee adjustment, personality and the stress process, employee retention, and career development. He has taught courses related to organizational staffing at the undergraduate, master’s, and doctoral levels. His research work has appeared in Academy of Management Journal; the Journal of Applied Psychology; Personnel Psychology; the Journal of Management; and the Journal of Organizational Behavior, among other outlets. He serves on the editorial boards of the Journal of Applied Psychology; Personnel Psychology; and Organizational Research Methods. In addition to his scholarly work, John has performed consulting work in the areas of employee satisfaction, retention, and workplace safety and health for 3M Corporation, Allegiance Healthcare, Allina Healthcare, and the State of Minnesota. He has also worked with the Florida Nurses Association and the Florida Bar on research projects of interest to their professional membership.

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PREFACE

here has been a continual effort to incorporate strategic organizational concerns into every edition of the textbook. The ninth edition of Staffing Organizations develops these concepts

significantly. Based on ideas from leading human resources thinkers, new discussions describe how to incorporate organizational strategy into every part of the staffing process. This material not only underlines the importance of strategic thinking for students, but provides specific guidance for specific actions that staffing decision makers can take to improve talent management.

This edition has been the beneficiary of major restructuring and updating to ensure continuing alignment of the material with current in-the-field business practices. The changes range from small inclusions of new standards to major chapter revisions. The new structure will make it easier for students to see how each part of the staffing process proceeds from beginning to end, and it will also help them see how the topics fit together to create a cohesive staffing management system.

The human resources landscape continues to be transformed by technology, and this edition of the textbook reflects this influence. The use of human resources information systems for tasks like recruitment, selection, and forecasting is now thoroughly integrated into all sections. The role of social media, the Internet, and other information management tools is emphasized in several chapters, and new examples from companies keep the application of concepts fresh and current.

The changes for this edition reflect the integration of technology into core staffing functions. Many of the previous headings related to web-based topics have thus been eliminated to reflect that these are no longer novel add-ons to staffing management but an integral part of the process.

Listed below are updates to each chapter.

Chapter One: Staffing Models and Strategy

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Updated workforce growth statistics throughout the chapter Updated list of companies that are intensively hiring Updated material on Gore’s position as one of Fortune magazine’s 100 Best Companies to Work For New material on person-job match and person-organization fit New material based on a recent report on the current talent shortage in the IT, skilled trades, and sales industries Added material on the distinction between the labor force size and the labor force participation rate Updated definition of staffing ethics from the Society for Human Resource Management

Chapter Two: Legal Compliance

New material on classifying individuals as either employees or independent contractors based on criteria from the Internal Revenue Service and the Department of Labor Guidance from the Equal Employment Opportunity Commission (EEOC) on defining discrimination based on the meaning of race/color, national origin, sex, religion, disability, age, pregnancy, and genetic information Updated information on the protected characteristics of sexual orientation and gender identity

Chapter Three: Planning

Increased emphasis on organizational culture in the planning process New material on executive buy-in during human resources planning Updated discussion of workforce skills demand and employment patterns Revised exhibit showing labor force statistics trends New material on trends in labor force participation and work hours Streamlined discussion of forecasting techniques Comprehensive review of research on flexible workforce quality New material reviewing research on when to use outsourcing Updated information regarding affirmative action for veterans and qualified individuals with disabilities

Chapter Four: Job Analysis and Rewards

Greater emphasis on implementing competency-based job analysis New figure showing the process of job requirements job analysis New figure showing the process of competency-based job analysis New figure outlining the distinctions among knowledge, skills,

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abilities, and other characteristics and their workplace relevance Streamlined discussion of O*NET models Revised end-of-chapter cases Revised information on the types of evidence of essential job functions

Chapter Five: External Recruitment

New material on integrating in-house recruitment with external vendors Integration of online recruitment techniques across topic areas Comprehensive review of research on applicant reactions to the external recruitment process Increased discussion of social media effects on recruitment Revised and updated presentation of recruitment messages Increased treatment of targeted recruitment techniques New discussion of the transition from recruitment to selection Updated discussion regarding policies about written job applicants Revised material on best-practice recruitment ideas from the EEOC Updated information on recruitment using social media and job advertisements

Chapter Six: Internal Recruitment

New material describing best practices in the strategic policy development process Revised and updated presentation of recruitment messages Revised and updated discussion of replacement and succession plans New discussion of the transition from recruitment to selection New material on best-practice promotion ideas from the EEOC New discussion of barriers to upward mobility and improving upward mobility

Chapter Seven: Measurement

Updated example of the nominal level of measurement New material on biases in subjective measurement and rater training Revised percentiles example New discussion of the role of biases and contextual factors in interrater reliability New material on how construct-, content-, and criterion-related validation evidence should be amassed and interpreted together New material on the situational appropriateness of predictive versus concurrent validation designs Revised definition and discussion of content validity

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Updated illustrative study of the Maryland Department of Transportation New material reviewing the meta-analytic work on prior validity generalization and the gaps in our current understanding New example using insights from Glassdoor to highlight practical considerations in staffing New discussion of mobile and Internet-based test administration

Chapter Eight: External Selection I

New material on applicant reactions toward performance tests and the validity of such tests Updated discussion of video résumés New material on the adverse impact of résumés, letters of recommendation, credit checks, and biodata New discussion of the “double jeopardy” effect New discussion of the usefulness of a college education and quality of school as educational requirements, including examples New material on how studying abroad leads to an expanded cultural intelligence, an area of extracurricular activities that may be important for staffing New material on how experience is multidimensional, with many characteristics and levels of analysis New discussion of “Ban the Box” legislation New material on initial impressions as bias in initial interviews Updated material on applicant reactions and attraction from meta- analytic research Updated list of states that currently limit the use of credit information in staffing New material on social media screening and safeguards New discussion of bona fide occupational qualification claims and their justification

Chapter Nine: External Selection II

Updated Big Five stability and heritability estimates with the most recent meta-analytic research Updated website links and test information throughout the chapter New material and discussion on the “too much of a good thing” effect with conscientiousness New material and discussion on the “trivial validities” of personality, including updated meta-analytic research and additional personality frameworks

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New material and meta-analytic evidence on personality test faking New material and discussion on when socially desirable behavior is not desirable for job performance Updated Exhibits 9.2 and 9.13 based on new evidence Updated evaluation of cognitive ability tests with newest meta-analytic research on organizational citizenship behavior and counterproductive work behavior Revised adverse impact evidence for cognitive ability tests New material on how “star applicants” can become offended by having to take cognitive ability tests New material and discussion on physical abilities tests that draw from the most recent meta-analytic estimates New material and discussion on performance-based emotional intelligence measurement and emotional intelligence validity Updated meta-analytic validity estimates of work sample tests New material and discussion on the “situational” perspective on situational judgment tests New material on integrity test validity and faking New material on vocational congruence and attained vocational aspirations Updated meta-analytic research and other material for interviews, including structured interview characteristics, behavioral and situational interview comparisons, validity, and interviewer characteristics New material on the National Football League (NFL) and how OCBs matters less to outsiders (e.g., external consultants) than to insiders in team selection Updated statistics and figures on drug testing Revised material on the Uniform Guidelines on Employee Selection Procedures New discussion of marijuana and other drug testing

Chapter Ten: Internal Selection

Updated peer assessment section with meta-analytic results New material on the impact of self-assessments on biased promotion judgments New material on the impact of biases such as political skill on promotability ratings New meta-analytic material on the characteristics of assessment centers New material and discussion on solutions for the assessment center construct validity dilemma

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Revised the validity ranges to match traditional standards

Chapter Eleven: Decision Making

New section on predictive analytics New section describing the interface between organizational leaders and HR representatives based on best practices in the field New material covering techniques for assessing economic impact New exhibit reviewing techniques for assessing links between economic impact analysis and other functional areas of the business New exhibit covering the role of decision makers in selection New section covering differential weighting techniques for predictors Updated and revised discussion of choosing among weighting schemes Streamlined discussion of test score banding

Chapter Twelve: Final Match

New section on long-term adjustment and the process of new hire onboarding over time Updated and revised discussion of specific onboarding practices Increased discussion of expatriate adjustment in staffing Updated and revised discussion of the strategic approach to job offers, with increased linkages to decision making and system management Streamlined discussion of pay policies Streamlined discussion of employment contracts Revised material on negligent hiring and minimizing its occurrence

Chapter Thirteen: Staffing System Management

New section describing the design and administration of staffing systems Emphasis on strategic fit between staffing systems and organizational goals and processes Incorporation of strategic management research regarding HR systems New exhibit contrasting hierarchical and participative staffing systems Review of techniques for defining the mission of staffing Updated and revised material on organizational arrangements New EEO-1 report New discussion of incorporating implicit (hidden) bias material into EEO training New and revised material on internal and external dispute resolution procedures

Chapter Fourteen: Retention Management

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Enhanced review of techniques for analyzing turnover Comprehensive update and reorganization of material related to retention initiatives New section on predictive analytics in retention management New exhibit contrasting hire, quit, and layoff differences across industries New exhibit demonstrating how to use turnover breakout results Updated exhibit describing guidelines for increasing satisfaction and retention of employees Updated and revised discussion of causes of turnover Updated and revised discussion of the costs and benefits of turnover

In preparing previous editions, we have benefited greatly from the critiques and suggestions of numerous people whose assistance was invaluable. They helped us identify new topics, as well as clarify, rearrange, and delete material. We extend our many thanks to the following individuals:

Amy Banta, Franklin University Fred Dorn, University of Mississippi Hank Findley, Troy University Diane Hagan, Ohio Business College Mark Lengnick-Hall, University of Texas–San Antonio

We wish to extend a special note of thanks to the McGraw-Hill Education publishing team—in particular, Michael Ablassmeir, Laura Spell, Melissa Leick, and Jane Beck—for their hard work and continued support of the number-one staffing textbook in the market. Thanks also to the staff at Westchester Publishing Services for their dedicated work in this collaborative undertaking. We wish to thank Dr. David R. Glerum for his hard work on manuscript revisions, editing, and preparation. Finally, we wish to thank you—the students and faculty who use the book. If there is anything we can do to improve your experience with Staffing Organizations, please contact us. We will be happy to hear from you.

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CONTENTS

PART ONE

The Nature of Staffing 3

CHAPTER ONE Staffing Models and Strategy 5 Learning Objectives and Introduction 6

Learning Objectives 6 Introduction 6

The Nature of Staffing 7 The Big Picture 7 Definition of Staffing 10 Implications of Definition 10 Staffing System Examples 13

Staffing Models 15 Staffing Quantity: Levels 15 Staffing Quality: Person/Job Match 16 Staffing Quality: Person/Organization Match 18 Staffing System Components 20 Staffing Organizations 23

Staffing Strategy 27 Staffing Levels 27 Staffing Quality 32

Staffing Ethics 33 Plan for the Book 36 Summary 37 Discussion Questions 38 Ethical Issues 38

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Applications 38 Staffing for Your Own Job 38 Staffing Strategy for a New Plant 40

Endnotes 41

PART TWO

Support Activities 45

CHAPTER TWO Legal Compliance 47 Learning Objectives and Introduction 49

Learning Objectives 49 Introduction 49

The Employment Relationship 50 Employer–Employee 50 Independent Contractors 53 Temporary Employees 54 Unpaid Interns and Trainees 55

Laws and Regulations 55 Need for Laws and Regulations 55 Sources of Laws and Regulations 56

EEO/AA Laws: General Provisions and Enforcement 58 General Provisions 58 Enforcement: EEOC 61 Enforcement: OFCCP 67

EEO/AA Laws: Specific Staffing Provisions 69 Civil Rights Acts (1964, 1978, 1991) 69 Age Discrimination in Employment Act (1967) 72 Americans With Disabilities Act (1990, 2008) 73 Genetic Information Nondiscrimination Act (2008) 77 Rehabilitation Act (1973) 78 Executive Order 11246 (1965, 1967, 2014) 78

Other Staffing Laws 79 Federal Laws 79 State and Local Laws 82 Civil Service Laws and Regulations 83

Legal Issues in Remainder of Book 85 Summary 85 Discussion Questions 86 Ethical Issues 86

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Applications 87 Age Discrimination in a Promotion? 87 Disparate Impact: What Do the Statistics Mean? 88

Endnotes 89

CHAPTER THREE Planning 91 Learning Objectives and Introduction 93

Learning Objectives 93 Introduction 93

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

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

Staffing Planning 121 Staffing Planning Process 121 Core Workforce 124 Flexible Workforce 125 Outsourcing 128

Diversity Planning 130 Demography of the American Workforce 130 Business Case for Diversity 131 Planning for Diversity 132

Legal Issues 134 Affirmative Action Plans 134 Legality of AAPs and Diversity Programs 139 AAPs for Veterans and Individuals With Disabilities 142 EEO and Temporary Workers 142

Summary 143 Discussion Questions 144 Ethical Issues 144 Applications 145

Markov Analysis and Forecasting 145 Deciding Whether to Use Flexible Staffing 145

Endnotes 147

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CHAPTER FOUR Job Analysis and Rewards 153 Learning Objectives and Introduction 155

Learning Objectives 155 Introduction 155

The Need for Job Analysis 156 Types of Job Analysis 156 The Changing Nature of Jobs 157

Job Requirements Job Analysis 159 Overview 159 Job Requirements Matrix 160 Job Descriptions and Job Specifications 168 Collecting Job Requirements Information 169

Competency-Based Job Analysis 177 Overview 179 Nature of Competencies 179 Collecting Competency Information 182

Job Rewards 185 Types of Rewards 185 Employee Value Proposition 185 Collecting Job Rewards Information 186

Legal Issues 193 Job Relatedness and Court Cases 193 Essential Job Functions 194

Summary 195 Discussion Questions 196 Ethical Issues 197 Applications 197

Conducting a Job Requirements or Job Rewards Job Analysis 197 Maintaining Job Descriptions 198

Endnotes 199

PART THREE

Staffing Activities: Recruitment 203

CHAPTER FIVE External Recruitment 205 Learning Objectives and Introduction 207

Learning Objectives 207 Introduction 207

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Strategic Recruitment Planning 208 Defining Strategic External Recruitment Goals 209 Open Versus Targeted Recruitment 211 Organization and Administration 213

Applicant Reactions 219 Reactions to Job and Organizational Characteristics 220 Reactions to Recruiters 220 Reactions to the Recruitment Process 221 Reactions to Diversity Issues 222

Communication 223 Communication Message 223 Communication Media 229

Strategy Implementation 236 Individual Recruitment Sources 236 Social Recruitment Sources 239 Organizational Recruitment Sources 242 Recruitment Metrics 248

Transition to Selection 251 Legal Issues 252

Definition of a Job Applicant 252 Affirmative Action Programs 254 Electronic Recruitment 254 Job Advertisements 257 Fraud and Misrepresentation 257

Summary 258 Discussion Questions 259 Ethical Issues 259 Applications 260

Improving a College Recruitment Program 260 Internet Recruitment 262

Endnotes 263

CHAPTER SIX Internal Recruitment 269 Learning Objectives and Introduction 270

Learning Objectives 270 Introduction 270

Strategic Recruitment Planning 271 Defining Strategic Internal Recruitment Goals 271 Mobility Paths and Policies 271 Closed, Open, and Hybrid Recruitment 276 Organization and Administration 279

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Timing 280 Applicant Reactions 283 Communication 284

Communication Message 284 Communication Media 285

Strategy Implementation 286 Recruitment Sources 286 Recruitment Metrics 292

Transition to Selection 295 Legal Issues 295

Affirmative Action Programs 296 Bona Fide Seniority Systems 296 The Glass Ceiling 298

Summary 301 Discussion Questions 302 Ethical Issues 302 Applications 302

Recruitment in a Changing Internal Labor Market 302 Succession Planning for a CEO 304

Endnotes 304

PART FOUR

Staffing Activities: Selection 309

CHAPTER SEVEN Measurement 311 Learning Objectives and Introduction 313

Learning Objectives 313 Introduction 313

Importance and Use of Measures 314 Key Concepts 315

Measurement 315 Scores 319 Correlation Between Scores 322

Quality of Measures 327 Reliability of Measures 328 Validity of Measures 336 Validation of Measures in Staffing 339 Validity Generalization 348 Staffing Metrics and Benchmarks 351

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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 Service Representatives 361

Conducting Empirical Validation and Adverse Impact Analysis 364 Endnotes 367

CHAPTER EIGHT External Selection I 371 Learning Objectives and Introduction 372

Learning Objectives 372 Introduction 372

Preliminary Issues 372 The Logic of Prediction 373 The Nature of Predictors 374 Development of the Selection Plan 376 Selection Sequence 376

Initial Assessment Methods 379 Résumés and Cover Letters 379 Application Blanks 383 Biographical Information 391 Reference and Background Checks 396 Initial Interview 402 Choice of Initial Assessment Methods 404

Legal Issues 409 Disclaimers 410 Reference Checks 410 Social Media Screening 411 Background Checks: Credit and Criminal 412 Preemployment Inquiries 415 Bona Fide Occupational Qualifications 417

Summary 420

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Discussion Questions 420 Ethical Issues 421 Applications 421

Reference Reports and Initial Assessment in a Start-Up Company 421 Developing a Lawful Application Blank 422

Endnotes 424

CHAPTER NINE External Selection II 431 Learning Objectives and Introduction 432

Learning Objectives 432 Introduction 432

Substantive Assessment Methods 433 Personality Tests 433 Ability Tests 442 Emotional Intelligence Tests 450 Performance Tests and Work Samples 453 Situational Judgment Tests 456 Integrity Tests 459 Interest, Values, and Preference Inventories 464 Structured Interview 466 Selection for Team Environments 475 Choice of Substantive Assessment Methods 477

Discretionary Assessment Methods 481 Contingent Assessment Methods 481

Drug Testing 482 Medical Exams 488

Legal Issues 488 Uniform Guidelines on Employee Selection Procedures 488 Selection Under the Americans With Disabilities Act 489 Marijuana and Other Drug Testing 493

Summary 494 Discussion Questions 495 Ethical Issues 496 Applications 496

Assessment Methods for the Job of Human Resources Director 496 Choosing Among Finalists for the Job of Human Resources Director 

498 Endnotes 499

CHAPTER TEN Internal Selection 513

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Learning Objectives and Introduction 515 Learning Objectives 515 Introduction 515

Preliminary Issues 516 The Logic of Prediction 516 Types of Predictors 517 Selection Plan 517

Initial Assessment Methods 518 Talent Management/Succession Systems 518 Peer Assessments 519 Self-Assessments 521 Managerial Sponsorship 521 Informal Discussions and Recommendations 523 Choice of Initial Assessment Methods 525

Substantive Assessment Methods 525 Seniority and Experience 526 Job Knowledge Tests 527 Performance Appraisal 528 Promotability Ratings 530 Assessment Centers 531 Interview Simulations 538 Promotion Panels and Review Boards 539 Choice of Substantive Assessment Methods 539

Discretionary Assessment Methods 541 Legal Issues 541

Uniform Guidelines on Employee Selection Procedures 541 The Glass Ceiling 542

Summary 543 Discussion Questions 544 Ethical Issues 544 Applications 544

Changing a Promotion System 544 Promotion From Within at Citrus Glen 545 Questions 546

Endnotes 547

PART FIVE

Staffing Activities: Employment 553

CHAPTER ELEVEN

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Decision Making 555 Learning Objectives and Introduction 557

Learning Objectives 557 Introduction 557

Choice of Assessment Method 558 Validity Coefficient 558 Correlation With Other Predictors 560 Adverse Impact 560 Hiring Success Gain 560 Economic Gain 563

Determining Assessment Scores 566 Single Predictor 566 Multiple Predictors 566

Hiring Standards and Cut Scores 571 Description of the Process 572 Consequences of Cut Scores 573 Methods to Determine Cut Scores 574

Methods of Final Choice 579 Random Selection 579 Ranking 579 Grouping 580 Ongoing Hiring 580

Decision Makers 581 Organizational Leaders 581 Human Resource Professionals 582 Managers 583 Coworkers 583

Legal Issues 584 Uniform Guidelines on Employee Selection Procedures 584 Diversity and Hiring Decisions 585

Summary 586 Discussion Questions 587 Ethical Issues 587 Applications 587

Utility Concerns in Choosing an Assessment Method 587 Choosing Entrants Into a Management Training Program 589

Endnotes 591

CHAPTER TWELVE Final Match 595 Learning Objectives and Introduction 597

Learning Objectives 597

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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 Process 615 Formulation of the Job Offer 615 Presentation of the Job Offer 622 Timing of the Offer 623 Job Offer Acceptance 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 Evaluating a Hiring and Variable-Pay Plan 639

Endnotes 641

PART SIX

Staffing System and Retention Management 647

CHAPTER THIRTEEN Staffing System Management 649 Learning Objectives and Introduction 650

Learning Objectives 650

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Introduction 650 Design and Administration of Staffing Systems 651

Defining the Mission of Staffing 651 Organizational Arrangements 652 Policies and Procedures 655 Human Resource Information Systems 657 Outsourcing 660

Evaluation of Staffing Systems 663 Staffing Process 663 Staffing Process Results 666 Calculating Staffing Metrics 672

Legal Issues 673 Record Keeping and Privacy 673 EEO Report 675 Legal Audits 675 Training for Managers and Employees 677 Dispute Resolution 678

Summary 680 Discussion Questions 681 Ethical Issues 681 Applications 681

Learning About Jobs in Staffing 681 Evaluating Staffing Process Results 682

Endnotes 683

CHAPTER FOURTEEN Retention Management 687 Learning Objectives and Introduction 689

Learning Objectives 689 Introduction 689

Turnover and Its Causes 690 Nature of the Problem 690 Types of Turnover 690 Causes of Turnover 692

Analysis of Turnover 695 Measurement 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

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Alternatives 714 Current Practices and Deciding to Act 715

Retention Initiatives: Discharge 720 Performance 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 Performance Appraisal 730

Summary 731 Discussion Questions 733 Ethical Issues 733 Applications 734

Managerial Turnover: A Problem? 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

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PART ONE

The Nature of Staffing

CHAPTER ONE 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/Organization Match Staffing System Components Staffing Organizations

Staffing Strategy Staffing Levels Staffing Quality

Staffing Ethics

Plan for the Book

Summary

Discussion Questions

Ethical Issues

Applications Staffing for Your Own Job

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Staffing Strategy for a New Plant

Endnotes

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 organizations model and how its various components fit into the plan for the book Appreciate the importance of staffing strategy, and review the 13 decisions that staffing strategy requires Realize the importance of ethics in staffing, and learn how ethical staffing practice is established

Introduction Staffing is a critical organizational function concerned with the acquisition, deployment, and retention of the organization’s workforce. As we note in this chapter and throughout the book, staffing is arguably the most critical function underlying organizational effectiveness, because “the people make the place,” labor costs are often the highest organizational cost, and poor hiring decisions are not easily undone.

This chapter begins with a look at the nature of staffing. This includes a view of the “big picture” of staffing, followed by a formal definition of staffing and the implications of that definition. Examples of staffing systems are given.

Five models are then presented to elaborate on and illustrate various facets of staffing. The first model shows how projected workforce head- count requirements and availabilities are compared to determine the appropriate staffing level for the organization. The next two models illustrate staffing quality, which refers to matching a person’s qualifications with the requirements of the job or organization. The person/job match model is the foundation of all staffing activities; the person/organization

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match model shows how person/job matching could extend to how well the person will also fit with the organization. The core staffing components model identifies recruitment, selection, and employment as the three key staffing activities, and it shows that both the organization and the job applicant interact in these activities. The final model, staffing organizations, provides the entire framework for staffing and the structure of this book. It shows that organizations, human resources (HR), and staffing strategy interact to guide the conduct of staffing support activities (legal compliance, planning, and job analysis) and core staffing activities (recruitment, selection, and employment); employee retention and staffing system management are shown to cut across both types of activities.

Staffing strategy is then explored in detail by identifying and describing a set of 13 strategic staffing decisions that confront any organization. Several of the decisions pertain to staffing levels and the remainder to staffing quality.

The ethics of staffing—the moral principles and guidelines for acceptable practice—is discussed next. Several pointers that help guide ethical staffing conduct are indicated, as are some of the common pressures to ignore these pointers and compromise one’s ethical standards. Suggestions for how to handle these pressures are also made.

Finally, the plan for the remainder of the book is presented. The overall structure of the book is shown, along with key features of each chapter.

THE NATURE OF STAFFING

The Big Picture

Organizations are combinations of physical, financial, and human capital. Human capital refers to the knowledge, skill, and ability of people and their motivation to use these successfully on the job. The term “workforce quality” refers to an organization’s human capital. The organization’s workforce is thus a stock of human capital that it acquires, deploys, and retains in pursuit of organizational outcomes such as profitability, market share, customer satisfaction, and environmental sustainability. Staffing is the organizational function used to build this workforce through such systems as staffing strategy, HR planning, recruitment, selection, employment, and retention.

At the national level, the collective workforces of US organizations total over 121 million (down from a peak of nearly 140 million in 2005), with employees spread across nearly 7.5 million work sites. The work sites vary considerably in size, with 24% of employees in work sites with fewer than 20 employees, 54% in work sites with 20–500 employees, and 21% in work

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sites with more than 500 employees.1 Each of these work sites used some form of a staffing process to acquire its employees. Job creation has continued to expand since job growth recovery from the Great Recession was achieved in April 2014; since then, nearly 4.6 million jobs have been added as of December 2015. Among the industries contributing to this job growth, service-providing industries such as hospitality, leisure, health care, and professional services have been leading the way. Given the steadily increasing job growth over the last five years, as well as the boon in professional services such as selection and assessment, staffing is big business for both organizations and job seekers.2

For most organizations, a workforce is an expensive proposition and cost of doing business. It is estimated that an average organization’s employee cost (wages or salaries and benefits) is over 22% of its total revenue (and generally a higher percentage of total costs).3 The percentage is much greater for organizations in labor-intensive industries—the service- providing as opposed to goods-producing industries—such as retail trade, information, financial services, professional and business services, education, health care, and leisure and hospitality. Since service- providing industries now dominate our economy, matters of employee cost and whether the organization 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 organization. Organizations that deliver superior customer service, much of which is driven by highly knowledgeable employees with fine-tuned customer service skills, have a definite and hopefully long-term advantage over their competitors. The competitive advantage derived from such human capital has important financial implications.

In addition to direct bottom-line implications, an organization’s focus on creating an effective selection system also has indirect implications for a competitive advantage by enhancing employees’ well-being and retention. One recent study showed that employees who perceive that their company uses effective selection practices such as formal selection tests and structured job interviews (practices that we will discuss in this book) are more committed to their organizations. In turn, those higher levels of commitment lead to more helping or citizenship behaviors on the part of employees, as well as stronger intentions to remain employed, both of which ultimately contribute to an organization’s bottom line.4

This renewed focus on establishing a competitive advantage in staffing has also been revolutionized by advancements in technology that have changed the way employees are assessed during the staffing process. These

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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 reporting of assessments (e.g., electronic scoring and reporting). Although these changes are often financially sound and efficient benefits for organizations, this new paradigm 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 “technology effect” suggests that certain technological advancements may be viewed with rose-colored glasses, even without proper evaluation of their effectiveness.6

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

EXHIBIT 1.1 The Importance of Staffing to Organizational Leaders

“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