MGTO 324 Recruitment and Selections

Staffing model, strategy, & planning

Prologue

• The idea of staffing has been very salient in Indian histor

y and culture
– “Recruitment” was a highly valued activity in our History
– Recruitment = assessing moral standard but not others

– Recruitment = assessing relevant knowledge and skills, regardless of moral

– Relevant knowledge
» Those with relevant skills and knowledge will be selected
Outline
Outline
Part I: Staffing Model

• Defining “staffing”
– “the process of acquiring, deploying, and retaining,
a workforce of sufficient quantity and quality to create
positive impacts on the organization’s effectiveness”
• Acquiring: external staffing, new blood
• Deploying: internal staffing (promotion, transfer)
• Retention: turnover, compensation, etc.
Part I: Staffing Model

• Can “good” staffing lead to better organizational eff

ectiveness?
– Yes, strongly supported by research findings
• Youndt et al., (1996, Academy of Management Journal)
– Selectivity +ve  organizational performance
• Greer et al. (2001, Journal of Business Research)
– Countercyclical hiring +ve  organizational performance 2 years lat
er
• Russell (2001, Journal of Applied Psychology)
– Using the effective selection system used by a Fortune 500 organiza
tion resulted in more profits.
Part I: Staffing Model

• The Basic Model

Staffing = counting
• Considering quantity but not quality
• The simplest model
• Exhibit 1.1
Exhibit 1.1 Staffing Quantity

Projected Staffing Requirements

Overstaffed
Compare Fully Staffed
Understaffed

Projected Staffing Availabilities

Part I: Staffing Model

• The person/job match model

– Staffing = counting + the person-job match
• Job characteristics x individual characteristics
– Designers: create new items
» Creative, imaginative
– Social workers: help people with problems
» Empathetic, not selfish
– Researchers: discover new knowledge
» Hardworking, curious to knowledge
Exhibit 1.2 Person/Job Match

Job

Requirements
Rewards HR Outcomes
Attraction
Performance
Match Retention
Impact Attendance
Satisfaction
Person Other

KSAOs
Motivation
Part I: Staffing Model

• The person/organization match model

– Staffing = counting + the person-job match
• Job characteristics x individual characteristics x organization
al contexts
– Organization values, culture, career development
Exhibit 1.3 Person/Organization Match

Organization New Job

Values Duties
Job
Requirements
Rewards

Multiple Future
Jobs Jobs HR Outcomes
Attraction
Performance
Match Retention
Impact Attendance
Satisfaction
Person
Other
KSAOs
Motivation
Part I: Staffing Model

• Relationship between applicants and job

– Depending on the economy
• At times, organization may be the dominant player
• At other times, the applicant may be the aggressor
– Depending on demand / supply
• For jobs that the supply is more than the demand
– Organization becomes dominant
» E.g., The demand of IT jobs dropped significantly in and after 20
01
• For jobs that the demand is less than the supply
– Applicants become dominant
» E.g., hiring good professors in business school
Exhibit 1.4 Staffing System Components

Applicant Organization
(person) (job)

Recruitment
(identification and attraction)

Selection
(assessment and evaluation)

Employment
(decision making and final match)
Part I: Staffing Model

• Staffing Organizations Model

– Strategic Human Resource Management
• Organizational Strategy  HR (Staffing) strategy
• Staffing becomes part of the overall organization strategy
• Core staffing activities are carefully “calibrated” to match the
organization strategy
Exhibit 1.5 Staffing Organizations Model

Organization
Missions
Goals and Objectives

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Support Activities Core Staffing Activities

Legal compliance Recruitment: external, internal

Planning Selection: measurement, external, internal
Job analysis Employment: decision making, final match

Staffing System and Retention Management

Outline
Part II: Staffing Strategy
Part II: Staffing Strategy
Part II: Staffing Strategy

• Staffing Levels
– Acquire or develop talent
– Lag or lead system
– External or internal hiring
– Core or flexible workforce
– Hire or retain
– National or Global
– Attract or relocate
– Overstaff or understaff
– Hire or acquire
Part II: Staffing Strategy
Part II: Staffing Strategy

• Staffing Quality
– Person/job or person/organization match
– Specific or General KSAOs
• Knowledge, Skills, Abilities, and Other characteristics
– Exceptional or Acceptable Workforce Quality
– Active or passive diversity
Outline
Part III: Human Resource Planning

• Defining “Human Resource Planning”

– A process and set of activities undertaken to forecast
an organization’s labor demand and internal labor s
upply (availabilities)
– Key steps
1. determine future human resource demands
2. determine future human resource availabilities
3. conduct external & internal environment scanning
4. determine gaps between demands and availabilities
5. develop action plans to close the projected gaps
 Exhibit 3.13 Operational Format and Example for
Human Resource Planning (HRP)

Organizational Unit: Sales and Customer Service

Forecast for Workforce—

One Year
Job Category and Current Reconciliation
Level Workforce Requirements Availabilities and Gaps Action Planning
A1 (Sales) 100 110 71 -39 (shortage) Staffing activities
Recruitment
A2 (Sales manager) 20 15 22 +7 (surplus) Selection
Employment
Other HR activities
B1 (Customer service 200 250 140 -110 (shortage) Compensation
representative) Training and
B2 (Customer service development
15 25 22 -3 (shortage)
manager)
335 400 255 -145 (shortage)
Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

• Step 1: forecasting the demands

– Use of statistical techniques
• Project the past to the future
– Ratio analysis
» $1000 sales per each salesmen; I need 20 salesmen for $20,00
0 sales
– Multiple regression analysis
» The concepts are relatively complex
Part III: Human Resource Planning

• Step 2: forecasting HR (within organization) availabilities

– Use of statistical techniques
• It is a simple probability calculation
• Four job positions
– Sale team: A1 (Sale manager); A2 (Account manager)
– Support team: B1 (Executive officer); B2 (Clerk)
• List all possible movements
– Job stability (remain in A1, A2, B1, and B2)
– Promotion (A2  A1; B2  B1)
– Demotion (A1  A2; B1  B2)
– Exit (leaving the organization)
• This information enables us to know the availability of each position
– Markov Analysis
Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

• Step 2: forecasting HR (within organization) availa

bilities
– Use of statistical techniques
• It is a simple probability calculation
• Four jobs
– Sale team: A1 (Sale manager); A2 (Account manager)
– Support team: B1 (Executive officer); B2 (Clerk)
• List all possible movements
– Job stability (remain in A1, A2, B1, and B2)
– Promotion (A2  A1; B2  B1)
– Demotion (A1  A2; B1  B2)
– Exit (leaving the organization)
Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

• Step 3: Environment Scanning

– External scanning
• Process of tracking trends and developments in the outside world
– More and more females decide not to have children, which implies that the pr
ojected supply of female workforce in the future years may have been under
estimated
– Government significantly increases no. of undergraduate students
– The government plans to recognize the diploma and degree offered by some
mainland universities
– Internal scanning
• Understanding the organization’s internal environment
– Nagging personnel problems
» High turnover rates, difficult in getting new qualified employees
» Any conflict between the values and attitudes of managers and the curr
ent business plan?
Environment scanning

• Economic situation: Boom /recession

• Legislative measures: Eg. Amendment in ID Act, e
nabled org to retrench upto 1000 employees witho
ut prior approval.
• Labour market scenario: competition in labour mar
ket and recruitment strategy of rival organziations
• Technological advancements
Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

• Step 4: Determining the gaps

– Surplus
• The availabilities will be more than the demands
– Slowing down promotion
– Early retirement
– Shortages
• The demands will be more than the availabilities
– Increasing transfer
– External staffing
 Exhibit 3.13 Operational Format and Example
for Human Resource Planning (HRP)
Organizational Unit: Sales and Customer Service

Forecast for Workforce—

One Year
Job Category and Current Reconciliation
Level Workforce Requirements Availabilities and Gaps Action Planning
A1 (Sales) 100 110 71 -39 (shortage) Staffing activities
Recruitment
A2 (Sales manager) 20 15 22 +7 (surplus) Selection
Employment
Other HR activities
B1 (Customer service 200 250 140 -110 (shortage) Compensation
representative) Training and
B2 (Customer service development
15 25 22 -3 (shortage)
manager)
335 400 255 -145 (shortage)
Part III: Human Resource Planning

Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans

Part III: Human Resource Planning

• Step 5: Action plans

– Set objectives
• Set clear additions or subtractions of head count on each of the possible
movements (e.g., new hires, promotions, transfers, demotions, and exits)
– Generating alternatives
• How to solve the shortage of 39 account managers?
– Long-term vs. short-term solutions
– Alternative 1: +20 new hires, +20 promotions, +20 transfers, 0 demotions, an
d -21 exits
– Alternative 2: +40 new hires, + 0 promotions, +0 transfers, 0 demotions, and
-1 exits
– Alternative 3: hiring more part-time account managers, encouraging overtime
working, outsourcing, etc.