MGTO 324 Recruitment and Selections Staffing model, strategy, & planning Kin Fai Ellick Wong Ph.D....

MGTO 324 Recruitment and Selections

Staffing model, strategy, & planning

Kin Fai Ellick Wong Ph.D.

Department of Management of Organizations

Hong Kong University of Science & Technology

Prologue

• The idea of staffing has been very salient in Chinese history and culture– “Recruitment” was a highly valued activity in our History

• East Han Dynasty ( 東漢 ), – Recruitment = assessing moral standard but not others

– Filial piety x integrity ( 察舉孝廉 )

• Wei Dynasty in the three-kingdom period ( 魏 )– Recruitment = assessing relevant knowledge and skills, regardless of moral

– Relevant knowledge

» 唯才是舉，吾得而用之 << 三國志，魏書，武帝操 >>

» Those with relevant skills and knowledge will be selected

Outline

Class 2: Staffing model, strategy, & planning

Part I: Staffing Model

Part II: Staffing Strategy

Part III: Human Resource Planning


• 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.


• Can “good” staffing lead to better organizational effectiveness? – 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.


• The Basic Model – Staffing = counting

• Considering quantity but not quality• The simplest model• Exhibit 1.1

Exhibit 1.1 Staffing Quantity

Projected Staffing Requirements

Projected Staffing Availabilities

Compare

Overstaffed

Fully Staffed

Understaffed


• 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

RequirementsRewards

Person

KSAOsMotivation

Match

HR Outcomes

AttractionPerformanceRetentionAttendanceSatisfactionOther

Impact


• The person/organization match model– Staffing = counting + the person-job match

• Job characteristics x individual characteristics x organizational contexts

– Organization values, culture, career development

• East Han Dynasty

Exhibit 1.3 Person/Organization Match

Job

RequirementsRewards

Person

KSAOsMotivation

Match

HR Outcomes

AttractionPerformanceRetentionAttendanceSatisfactionOther

Impact

OrganizationValues

New Job Duties

MultipleJobs

FutureJobs


• 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

2001

• 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(person)

Organization(job)

Recruitment(identification and attraction)

Selection(assessment and evaluation)

Employment(decision making and final match)


• 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

OrganizationMissions

Goals and Objectives

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Support Activities

Legal compliancePlanningJob analysis

Recruitment: external, internalSelection: measurement, external, internalEmployment: decision making, final match

Staffing System and Retention Management

Core Staffing Activities

Outline






Staffing StrategyStaffing Strategy

Staffing Levels:Getting sufficient no. of staff


Staffing Quality:Getting qualified staffStaffing Quality:Getting qualified staff


• Staffing Levels (think about HKUST)– 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


Staffing StrategyStaffing Strategy



Staffing Quality:Getting qualified staffStaffing Quality:Getting qualified staff


• Staffing Quality (again, think about HKUST)– 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






• Defining “Human Resource Planning”– A process and set of activities undertaken to forecast

an organization’s labor demand and internal labor supply (availabilities)

– Key steps1. 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

Level

Current

Workforce Requirements Availabilities

Reconciliation

and Gaps Action Planning

A1 (Sales) 100 110 71 -39 (shortage) Staffing activities

Recruitment

Selection

Employment

Other HR activities

Compensation

Training and

development

A2 (Sales manager) 20 15 22 +7 (surplus)

B1 (Customer service

representative)200 250 140 -110 (shortage)


manager) 15 25 22 -3 (shortage)

335 400 255 -145 (shortage)


Step 1: Forecasting HR demands

Step 2: Forecasting HR availabilities

Step 3: Environment scanning

Step 4: Determining gaps

Step 5: Action plans


• 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 $20,000 sales

– Multiple regression analysis » The concepts are relatively complex» Some techniques will be introduced in Workshop 6


• 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 (Workshop 2)


• Step 2: forecasting HR (within organization) availabilities– 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)


• 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

projected supply of female workforce in the future years may have been underestimated

– HK 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 manages and the

current business plan?


• 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

Level

Current

Workforce Requirements Availabilities

Reconciliation

and Gaps Action Planning

A1 (Sales) 100 110 71 -39 (shortage) Staffing activities

Recruitment

Selection

Employment

Other HR activities

Compensation

Training and

development

A2 (Sales manager) 20 15 22 +7 (surplus)


representative)200 250 140 -110 (shortage)


manager) 15 25 22 -3 (shortage)

335 400 255 -145 (shortage)


• 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, and -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.

MGTO 324 Recruitment and Selections Staffing model, strategy, & planning Kin Fai Ellick Wong Ph.D....

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