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Human Resource Management

Staffing Exam # 1 Study Guide- October 1 Ch. 1 Strategic Staffing  Why Is Staffing Important? o Staffing outcomes determine who will work for and represent the firm, and what its employees will be willing and able to do o Staffing influences the success of future training, performance management, and compensation programs, as well as the organization’s ability to execute its business strategy o Strategic Staffing- the process of staffing an organization in future-oriented and goal- directed ways that support the organization’s business strategy and enhance organizational effectiveness.  How Strategic Staffing Differs from Traditional Staffing o Strategic staffing systems incorporate  Longer-term planning  Alignment with the firm’s business strategy  Alignment with the other areas of HR  Alignment with the labor market  Targeted recruiting  Sound candidate assessment on factors related to job success and long-term potential  The evaluation of staffing outcomes against pre-identified goals o Traditional Staffing  Less tied to strategy  More reactive and more likely to be done in response to an opening  Lacks continuous improvement effort  Seven Components of Strategic Staffing o Workforce Planning: strategically evaluating the company’s current lines of business, new businesses it will be getting into, businesses it will be leaving, and the gaps between the current skills in the organization and the skills it will need to execute its business strategy  Usually involves both the hiring manager and a staffing specialist  Can be short-term and focus on an immediate hiring need  Can be long-term and focus on the organization’s needs in the future. Workforce planning is better strategically the more it addresses both the firm’s short and long-term needs o Sourcing Talent: locating qualified individuals and labor markets from which to recruit  Sourcing identifies people who would be good recruits o Recruiting Talent: making decisions and engaging in practices that affect either the number or types of individuals willing to apply for and accept job offers  Recruiting activities entice them to apply to the organization and accept job offers, if extended o Selecting Talent: assessing job candidates and deciding who to hire  Operates in a strong legal context o Acquiring Talent: putting together job offers that appeal to chosen candidates, and persuading job offer recipients to accept those job offers and join the organization  Negotiations usually result in employment contracts o Deploying Talent: assigning people to appropriate jobs and roles in the organization to best utilize their talents  Succession planning and career development enhance deployment options  Socializing the process of familiarizing newly hired and promoted employees with their job, workgroup, and organization as a whole o Retaining Talent: keeping successful employees engaged and committed to the firm  Succession management and career development are effective tools  Turnover of high performers can be expensive  Turnover of low performers can be beneficial  Retention saves money in recruiting and hiring replacements for those leaving  Staffing Goals o Process goals- during the hiring process  Attracting sufficient numbers of appropriately qualified applicants  Complying with the law and organizational policies  Fulfilling any affirmative action obligations  Meeting hiring timeline goals  Staffing efficiently o Outcome Goals- after hire  Hiring successful employees  Hiring individuals who will be eventually promoted  Reducing turnover rates among high performers  Hiring individuals for whom the other HR functions will have the desired impact  Meeting stakeholders needs  Maximizing the financial return on the firm’s staffing investment  Enhancing employee diversity  Enabling organization flexibility  Enhancing business strategy execution o Goals should be aligned with improving the strategic performance of the staffing system o The primary staffing goal is to match the competencies, styles, values, and traits of job candidates with the requirements of the organization and its jobs o Strategic staffing goes even further and enables the organization to better execute its business strategy and attain its business goals o Staffing goals should be consistent with the goals and needs of all stakeholders in the staffing process, including applicants and hiring managers  Questions to Ask in Setting Staffing Goals o Is it more important to fill the position quickly or fill it with someone who closely matches a particular talent profile? o What levels of which competencies, styles, values, and traits are really needed for job success and to execute the business strategy? o What is the business’s strategy and what types of people will it need 1, 5, and 10 years from now? o What talents must new hires possess rather than be trained to develop? o What are the organization’s long-term talent needs? Is it important for the person hired to have the potential to assume leadership roles in the future?  Integration with other areas of HR o Training o Performance management o Compensation o Succession planning o Career development o Recruitment impacts selection activities and the likelihood of successfully identifying good hires Ch. 2 Business & Staffing Strategies  Resource-Based View of the Firm o Focuses attention on the quality of the skills of a company’s workforce at various levels, and on the quality of the motivational climate created by management o HRM is valued not only for its role in implementing a given competitive scenario but also for its role in generating strategic capability. o Staffing has the potential to create organizations that are more intelligent and flexible than their competitors, and that exhibit superior levels of cooperation and operation  Five Requirements of Competitive Advantage o The resource must be valuable to the firm by exploiting opportunities and/or neutralizing threats in an organization’s environment o The resource must be rare among the company’s current and future competition o The resource must not be easily imitated by other firms o The resource must not be easily substituted or replaced with another resource o The company must be organized to be able to exploit the resource  Competitive Advantage o Anything that gives a firm an edge over rivals in attracting customers and defending itself against competition  To have a competitive advantage a company must be able to give customers superior value for their money (combination of quality, services, and acceptable price) o Sources of Competitive Advantage  Innovation- develop new products, services, and markets and improving current ones  Cost- provide the best customer support before, during, or after the sale  Quality- provide the highest-quality product or service  Branding- develop the most positive imagine  Distribution- dominate distribution channels to block competition  Speed- excel at getting your product or service to consumers quickly  Convenience- be the easiest for customers to do business with  First to market- introduce products and services before competitors  Business Strategy o Cost Leadership strategy  Strive to be the lowest cost producer for a particular level of product quality  Operational excellence o Differentiation strategy  Developing a product or service that has unique characteristics valued by customers  Product innovation o Specialization strategy  Focus on a narrow market segment or niche and pursue either a differentiation or cost leadership strategy within that market segment  Customer intimacy o Growth strategy  Expand the organization organically or through mergers and acquisitions  Staffing Implications of Different Sources of Competitive Advantage o Operational excellence (low cost)  Description:  Focus is on the efficient production and delivery of products and/or services  Objective is to lead industry in both price and convenience  Staffing implications  Efficiency focus  Adaptable  Trainable  Willing to follow standardized procedures o Product Leaderships (Innovation)  Description:  Provide a continuous stream of new cutting-edge products and services  Objective is the fast commercialization of new ideas  Staffing Implications  Top research talent  Entrepreneurial mind-set  Creativity  High tolerance for ambiguity  Interested in and motivated by learning and discovery o Customer Intimacy (customization)  Description:  Tailor and shape products and services to fit each customer’s needs  Objective is long-term customer loyalty and long-term customer profitability  Staffing Implications:  Adaptable  Learning oriented  Networking skills  Customer relations skills  Emotional resilience o Growth  Description:  Expand the company to either increase the firm’s sales or allow the company to achieve economies of scale  Staffing Implications:  Fit with company culture  Future oriented  Flexible (willing to assume multiple roles)  Willing to take controlled risks  Organizational Life Cycle and Strategy Choice o Strategy during growth phase  New and growing firms often pursue innovation or differentiation strategies to distinguish themselves from their competition o Strategy during maturity phase  The focus shifts to maintaining or obtaining further market share through cost leaderships, often by streamlining operations and focusing on efficiency  Because mature companies have a larger pool of internal talent from which to draw, the talent focus becomes more internal o Strategy during decline phase  Can pursue a cost-leadership strategy and allow the decline to continue until the business is no longer profitable  Can try to make changes to revive the product or service  Talent Philosophy o Talent philosophy- a system or beliefs about how employees should be treated o HR Strategy- linkage of the entire HR function with the firm’s business strategy in order to improve business strategy execution o Staffing Strategy- constellation of priorities, policies, and behaviors used to manage the flow of talent into, through, and out of an organization over time  Nine Elements of Staffing Strategy o Do we want a core or flexible workforce? o Do we prefer to hire internally or externally? o Do we want to hire for or train and develop needed skills? o Do we want to replace or retain our talent? o What levels of which skills do we need where? o Will we staff proactively or reactively? o Which jobs should we focus on? o Is staffing treated as an investment or a cost? o Will staffing be centralized or decentralized?  Competitive Talent Advantage o Human capital advantage: acquiring a stock of quality talent that creates a competitive advantage  Hiring and retaining outstanding people produces a stock of exceptional talent o Human process advantage: superior work processes that create a competitive advantage Ch. 3: The Legal Context  Complying with Employment Laws o Enhances hiring quality o Enhances the firm’s reputation and image as an employer o Promotes fairness perceptions among job candidates o Reduces spillover effects  Ex. Rejected applicants not becoming customers or discouraging others from applying for jobs o Reinforces an ethical culture o Enhances organizational performance by ensuring that people are hired or not hired based on their qualifications, not biases o Promotes diversity, which can enhance an organization’s ability to appeal to a broader customer base  Types of Employment Relationships o Employee:  someone hired by another person or business for a wage or fixed payment in exchange for personal services, and who does not provide the services as part of an independent business o Independent Contractor:  Performs services wherein the employer controls or directs only the result of the work o Contingent workers:  Any job in which an individual does not have a contract for long-term employment  Temporary workers  Leased workers  Part-time and seasonal workers  Unionized workers  Leased workers  Outsourced work  Employment at Will o Either party can terminate the employment relationship at any time, for just cause, no cause, or any cause that is not illegal, with no liability as long as there is no contract for a definite term of employment o Exceptions to employment at will  Retaliatory discharge  prohibited by EEO laws  Implied employment contract  When an employer’s personnel policies or handbooks indicate that an employee will not be fired except for good cause or specify a procedural process for firing  Implied covenant of good faith and fair dealing  Firing an employee to prevent their vesting in the pension plan next month  Federal or state discrimination protection  Labor Unions o Labor unions: legally represent workers, organize employees and negotiate the terms and conditions of union members’ employment o The conditions of employment are contained in a contract called a collective bargaining agreement or a collective employment agreement o 4 Union Models:  Closed shop: exclusively employs people who are already union members.  Union shop: employs both union and non-union workers, but new employees must join the union within a specified time limite  Agency shop: requires non-union workers to pay a fee to the union for its services in negotiating their contract  Open shop: does not discriminate based on union membership in employing or keeping workers. Some workers benefit from a union or the collective bargaining process despite not contributing to the union  Improper Interview Questions: What NOT to ask! o How many children do you have? o What is your native language o What clubs/organization do you belong to? o Height/weight?  EEO, AA, and Quotas o Equal Employment Opportunity: employment practices are designed and used in a “facially neutral” manner o Affirmative Action: the proactive effort to eliminate discrimination and its effects, and to ensure nondiscriminatory results in employment practices in the future  An affirmative action plan describes in detail the actions to be taken, procedures to be followed, and standards to be adhered to, when it comes to establishing an affirmative action program. o Staffing Quotas: establish specific requirements that certain percentages of disadvantaged groups be hired to equalize their proportional representation of underrepresented groups in the company’s workforce with their proportions in the organization’s relevant labor market  Equal Employment Opportunity Commission (EEOC) o Enforces the following federal statutes:  Title VII of the Civil Rights Act of 1964  The Age Discrimination in Employment Act of 1967 (ADEA)  Pregnancy Discrimination Act of 1978  Title I and V of The Americans with Disabilities Act (ADA) of 1990  Sections 501 and 503 of the Rehabilitation Act of 1973  Sections 102 and 103 of The Civil Rights Act of 1991  The Equal Pay Act of 1963  The Genetic Information Nondiscrimination Act of 2008 (GINA) o The EEOC encourages and facilitates voluntary compliance through tailored programs to meet the needs of employers and through programs to educate the public on EEO laws  The Office of Federal Contract Compliance Programs (OFCCP) o Responsible for administering and enforcing three equal employment opportunity programs that apply to federal contractors and subcontractors:  Executive Order 11246  Section 503 of the Rehabilitation Act of 1973  The affirmative action provisions of the Vietnam Era Veteran’s Readjustment Assistance Act of 1974 o Ensures that federal contractors with at least 50 employees and who receive $50,000 or more in grants, goods, and services take affirmative action to promote equal employment opportunity and annually file appropriate affirmative action plans  Who is an Applicant? o Only applicants may establish a prima facie case of unlawful discrimination regarding hiring decisions under state and federal discrimination statutes o Employers must determine who qualifies as an “applicant” in order to identify the gender and race of all applicants to evaluate whether its hiring practices have an adverse impact on men, women, or minorities o The question of who is an applicant is critical to establishing the proportions of the applicant pool belonging to different legally protected groups o Understanding the definition of an applicant can help employers minimize risk and protect themselves from costly audit defense.  How the OFCCP defines applicant o A person applying via the internet and related technologies to be an applicant if all four of the following criteria are satisfied:  The individual submits an expression of interest in employment through the internet or related electronic data technologies  The contractor considers the individual for employment in a particular position  The individuals expression of interest indicates the individual possesses the basic qualifications for the position and  The individual at no point in the contractors selection process prior to receiving an offer of employment from the contractor, removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position  Bases for Employment Lawsuits o Disparate treatment (intentional discrimination) is evidence by employer statements or written policies o Adverse (disparate) impact (unintentional discrimination) might occur with educational requirements or high or weight restrictions that may exclude large numbers of certain groups.  Disparate Treatment o Disparate treatment: the intentional discrimination based on a person’s protected characteristic  Can be direct- resulting from company’s policy to not hire old people  Can be inferred- situation factors or result from a combination of permissible and prohibited factors o To establish disparate treatment, the plaintiff must show: 
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