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CHAPTER TWELVECHAPTER TWELVE

Final MatchFinal Match

Screen graphics created by:Jana F. Kuzmicki, PhD

Troy State University-Florida and Western Region

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

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Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection:Measurement, external, internalEmployment:Decision making, final match

OrganizationVision and Mission

Goals and Objectives

Staffing Organizations ModelStaffing Organizations Model

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Chapter OutlineChapter Outline

Employment ContractsRequirements for

Enforceable ContractParties to ContractForm of ContractDisclaimersContingenciesOther Employment

Contract SourcesUnfulfilled Promises

Job OffersStrategic Approach to

Job OffersJob Offer Content

Job Offer Process Formulation of Job Offer Presentation of Job Offer Job Offer Acceptance and

Rejection Reneging

New Employee Orientation & Socialization

Legal Issues

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Employment ContractsEmployment Contracts

Requirements for enforceable contract Parties to contract Form of contract Disclaimers Contingencies Other employment contract sources Unfulfilled promises

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Employment ContractsEmployment Contracts

Requirements for enforceable contract

Offer

Acceptance

Consideration

Parties to contract

Employee or independent contractor

Third parties

Employment

contract

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Employment ContractsEmployment Contracts(continued)(continued)

Form of contractWritten contract

SuggestionsOral contract

One-year rule Parole evidence Suggestions

DisclaimersOral or written statement explicitly limiting an

employee right and reserving that right for employerRecommendations for enforcement

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Employment ContractsEmployment Contracts(continued)(continued)

ContingenciesExtending a job offer contingent on certain

conditions being fulfilled by offer receiver

Other employment contract sourcesEmployee handbooks

Oral statements made by employer representatives

12-8

Employment ContractsEmployment Contracts(continued)(continued)

Unfulfilled promises

Organizational HR issues

Do not make promises unwilling to keep

Be sure promises made are kept

Potential legal claims

Breach of contract

Promissory estoppel

Fraud

12-9

Job OffersJob Offers

Strategic Approach to Job Offers

Job offer content

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Exh. 12.1: Strategic Approach to Job OffersExh. 12.1: Strategic Approach to Job Offers

Labor Market ConditionsSupply availabilityTightness

Organization NeedsShort and Long Term OutcomesCost Control

Applicant NeedsRewards SoughtWillingness to Leave Job

Legal IssuesContract LanguageEEO/AA Goals

Job Offer

(Employee Value Proposition)

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Job Offer ContentJob Offer Content

Starting date Duration of contract Compensation

Starting pay Flat vs. differential rates Exh. 12.2: Example of

Starting Pay Policies

Variable pay Short term Long term

Benefits - Exh. 12.3 Hours

Special hiring inducements

Hiring bonuses Relocation assistance Hot skill premiums Severance packages

Restrictions on employees Other terms and

conditions Acceptance terms Sample job offer letter

Exh. 12.4

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Job Offer ProcessJob Offer Process

Formulation of job offer

Presentation of job offer

Job offer acceptance and rejection

Reneging

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Formulation of Job OfferFormulation of Job Offer

Knowledge of competitors

Labor demand issues

Who are the competitors?

What terms and conditions are they offering forthe job for which the hiring organization is staffing?

Labor supply issues

Offers need to attract number of staff required

Offers need to consider KSAOs of each offer receiver and the worth of the KSAOs

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Formulation of Job OfferFormulation of Job Offer(continued)(continued)

Applicant truthfulnessMinimal evidence exists on degree of applicant

truthfulnessTo combat deceit, organizations are pursuing

verification of all applicant information Likely reactions of offer receivers

Approaches to assess reactions to offers Gather information about various preferences from offer

receiver during recruitment/selection process Conduct research on why offer receivers accept or decline

job offers

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Formulation of Job OfferFormulation of Job Offer(continued)(continued)

Policies on negotiations and initial offersJob offers occur for both external / internal staffingConsider costs of job offer being rejected by

candidateCandidates may be receiving counteroffers from

current employerCurrently employed candidates incur costs for leaving

and expect a “make whole” offerCandidates are sophisticated in presenting their

demands

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Strategies for presenting initial offer

Lowball

Competitive

Best shot

Formulation of Job OfferFormulation of Job Offer(continued)(continued)

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Presentation of Job Offer Presentation of Job Offer

Two approaches

Mechanical approach

Sales approach

Exh. 12.7: Example of a Sales Approach to Job Offers

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Exh. 12.7: Example of aExh. 12.7: Example of aSales Approach to Job OffersSales Approach to Job Offers

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Job Offer Process:Job Offer Process:Acceptance, Rejection, Reneging Acceptance, Rejection, Reneging

Acceptance

Rejection

By organization

By offer receiver

Reneging

Exh. 12.8: Organization Actions to Dealwith Reneging

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New EmployeeNew EmployeeOrientation and SocializationOrientation and Socialization

OrientationExh. 12.9: New Employee Orientation Program

Suggestions Socialization

Content People Performance proficiency Organization goals and values Politics Language History

Delivery

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Legal IssuesLegal Issues

Authorization to work Under IRCA, company is prohibited from

hiring or continuing to employan alien not authorized to work in U.S.

Negligent hiring Workplace torts issue involving claims by an injured

plaintiff that plaintiff was harmed by an unfit employee who was negligently hired by company

Employment-at-will Involves right of either employer or employee to

unilaterally terminate employment relationship

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Ethical IssuesEthical Issues

Issue 1 A large financial services organization is thinking of adopting

a new staffing strategy for entry into its management training program. The program will provide the trainees all the knowledge and skills they need for their initial job assignment after training. So the organization has decided to do college recruiting at the end of the recruiting season, hiring those who have not been fortunate enough to receive any job offers, paying them a salary of 10% below market, and providing no other inducements such as a hiring bonus or relocation assistance. The organization figures this strategy and employee value proposition will yield a higher percentage of offers accepted, low cost per hire, and considerable labor cost savings due to below market salaries. Evaluate this strategy from an ethical perspective.

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Ethical IssuesEthical Issues

Issue 2An organization has a staffing strategy in which it

over-hires by 10% the number of employees it will actually need in any job category in order to ensure it meets its hiring needs. It reasons that some of the new hires will renege on the accepted offer, and that the organization can renege on some of its offers if need be to end up with the right number of new hires. Evaluate this strategy from an ethical perspective.