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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
Recruiting and
Selecting Employees
Chapter 5
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
HR Supply and Demand The Hiring Process Challenges in Hiring Process Meeting the Challenges of Effective Staffing
The Recruitment Process The Selection Process Legal Issues in Staffing
Chapter 5 OverviewChapter 5 Overview
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
Process used to ensure that an org has the “right” people when needed Right number With right skills
Human Resource PlanningHuman Resource Planning
Failure to plan has sig. financial costs Forecast future labor demand Forecast future labor supply Compare forecasted supply and demand
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
Human Resource Supply and Human Resource Supply and DemandDemand
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
The Hiring ProcessThe Hiring Process
Three components in hiring process:
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Copyright ©2010 Pearson Education, Inc. publishing
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Above average employee worth about 40% more than average employee
Costs of TurnoverCosts of Turnover
Turnover costs about 25% of salary Costs both direct and indirect Major costs include:
Separation Recruitment Selection Hiring Productivity
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What characteristics most important?
Challenges in the Hiring Challenges in the Hiring ProcessProcess
How do you measure the characteristics? How do you account for motivation?
Performance = ability x motivation Context dependent
Who makes the hiring decision?
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as Prentice Hall
A “sales activity”
RecruitmentRecruitment
Sources of recruiting Current employees (ILM) Referrals from current employees Former employees Former military Customers
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
RecruitmentRecruitment
Sources of Recruiting (continued)Print and radio advertisements Internet advertising and career sitesEmployment agenciesTemporary workersCollege recruitingNontraditional Recruiting
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Copyright ©2010 Pearson Education, Inc. publishing
as Prentice Hall
Internal vs. External Recruiting External—fresh perspectives
o Is learning curve associated with new hires Internal—less costly
o Signals opportunity to workforceo May not have as many new ideas
RecruitmentRecruitment
Evaluating recruiting sources Cost of sources? How long do employees recruited
from different sources stay?
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Planning recruitment efforts Should be tied to HRP How many candidates to attract? Depends on Yield ratios
o Applicant to Interviewo Interview to Offero Offer to Acceptance
RecruitmentRecruitment
Recruiting protected classes Target potential recruits through
media that focuses on minorities
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Reliability—consistency of measurement Across time and judges Almost always involves “noise”
SelectionSelection
Validity—does the device do what you want? Content—degree which selection device
measures actual job content Empirical—measures relationship between
selection device and job performance
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Copyright ©2010 Pearson Education, Inc. publishing
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Letters of recommendation Poor predictors of job performance Look at traits instead of tone
Application forms Ability tests
Cognitive and Physical ability tests Work Sample
Honesty tests Psychology tests
Selection ToolsSelection Tools
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as Prentice Hall
Selection ToolsSelection Tools
Personality tests Extroversion Agreeableness Conscientiousness Emotional stability Openness to
experience
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Interviews
Selection ToolsSelection Tools
Structured Interview
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Assessment centers Usually for managerial positions In basket exercise
Selection ToolsSelection Tools
Drug tests Reference checks Background checks Handwriting analysis
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Reactions to Selection Devices
SelectionSelection
Applicant reactions to selection devices Prefer job simulations and interview Dislike personality and cognitive ability
tests Manager reaction to selection systems
Little research Need devices that are quick, easy to
administer and easy to interpret
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Legal Issues in StaffingLegal Issues in Staffing
Discrimination Laws Develop clear policies for Hiring, disciplining and dismissing employees
Affirmative Action Not just for govt. and govt. contractors Can apply if guilty of discrimination
Negligent Hiring Learn as much as possible about past
work-related behavior
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Copyright ©2010 Pearson Education, Inc. publishing
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HR Planning is essential
Summary and ConclusionsSummary and Conclusions
Hiring process—3 activities and all impt. Many challenges in the hiring process Each step of hiring process must be managed
Recruiting—look everywhere! Best selection tools both reliable and valid
If not job-related, don’t ask