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Trend and Ratio Analysis
Year Business Factor (sales in millions)
Labor Productivity (annual sales per
employee)
HR Demand (number of employees)
1
2
3
4
5
6
$3.613
$3.748
$3.880
$4.095
$4.283
$4.446
$11,120
$11,120
$12,520
$12,520
$12,520
$12,520
325
337
310
327
342
355
Determines the relationship between two variables.
2-1© SHRM
Trend Analysis
Plots the number of employees for the last six years and projects the trend out for two more years.
2-2© SHRM
Turnover Analysis
• Most often expressed using an annualized formula.
• Calculated by dividing the number of separations per year by the average number of employees per month.
• 65 separations per year ÷ 225 average employees per month = 28.9% turnover.
• May also be calculated quarterly and used to project the annual turnover.
2-3© SHRM
Flow Analysis
CurrentStaff
Transfers 5Promotions 4New hires 15Recalls 10
Total 34
Inflow Outflow
Promotions 5Resignations 13Demotions 0Retirements 4Terminations 3Layoffs 15
Total 40
Projects future movement.
2-4© SHRM
Demand Analysis Techniques
Project the number of employees and the types of skills needed for the future.
SPHR only
2-5© SHRM
Organizational Approach to International Business
SPHR only
Ethnocentric Polycentric Regiocentric Geocentric
Four terms describe how a firm manages its international operations.
2-6© SHRM
International Employees
TCNs
Inpatriates
Localnationals
Expatriates
Employee Types
Employee Types
SPHR only
2-7© SHRM
Employeejob
Jobanalysis
Job description
Job specifications
Job competencies
Job Analysis and Employee Jobs
2-8© SHRM
Job Analysis
2-9© SHRM
Job Analysis Methods
• Observation
• Interview
• Open-ended questionnaire
• Highly structured questionnaire
• Work diary or log
2-10© SHRM
Job Analysis Uses
Career paths/succession planning
Legal defense
Training
Organizationaldesign
Performance standards
Performanceappraisals
Time management/goal setting
Recruiting
Affirmative action plan
Compensationadministration
Jobanalysis
2-11© SHRM
Which of the following would MOST likely be an essential job function?
A. Devotes approximately 8% of time to direct customer contact
B. Regularly reviews engineering design documents
C. As time permits, participates in an ongoing employee committee assignment
D. May delegate template preparation to administrative support
Answer: B2-12© SHRM
Job Descriptions
2-13© SHRM
Job Specifications
2-14© SHRM
Job Competencies
• Job competencies are the knowledge, skills, abilities, and personal characteristics that work together to produce outstanding performance.
• They are the critical success factors needed to perform in a job or functional area.
• Core competencies are aligned with key business objectives and/or values and contribute to organizational success.
2-15© SHRM
The FIRST step in determining which candidates are qualified for an open position is a(n)
A. review of the job description.
B. assessment of the company’s ability to pay.
C. review of the candidates’ résumés.
D. evaluation of internal candidates.
Answer: A2-16© SHRM
Internal Recruitment Sources
2-17© SHRM
External Recruitment Sources
Former employees, previous applicants, and walk-ins
Labor unions and third-party sources
The Internet
Educational recruiting
Trade and professional associations
Media advertising
School-to-work programs
Employee databases
Minority recruiting
Nontraditional labor pools
2-18© SHRM
Employment Branding
• Positions the company as an “employer of choice” in the labor market.
• Must be aligned with strategic plan, vision, mission, and values.
• Uses the same tools used to market the product to create an image of what it is like to work for the company.
2-19© SHRM
Recruitment Effectiveness
• Short-term– Time to recruit
applicants– Selection and
acceptance rates– Cost per applicant
hired– Quantity and quality
of applicants– EEO implications
• Long-term– Performance of hires– Turnover– Absenteeism per hire– Training costs
2-20© SHRM
Evaluating Recruitment Sources
YieldRatios
Qualified applicants 100
= 33%Total applicants 300
Minority applicants 80
= 27%Total applicants 300
Female applicants 185
= 62%Total applicants 300
Offers extended 5
= 33%Qualified applicants 15
Offers accepted 3
= 60%Offers extended 5
Offers extended 5= 50%
Final interviews 10
2-21© SHRM
A company made 30 offers, and 18 were accepted. What is the yield ratio of acceptance to offers?
A. 35%
B. 45%
C. 55%
D. 60%
Answer: DCalculation: 18 ÷ 30 = 60%
2-22© SHRM
Flexible Staffing
• Uses alternative recruiting sources and workers who are not regular employees.
• The choice of arrangement depends on:– The function.
– Level of supervision required.
– Time constraints.
– Financial constraints.
– Legal risks and liability.
2-23© SHRM
Co-Employment
• Organization and alternative staffing supplier share joint responsibility for alternative workers.
• Agreement summarizes:– Legal relationship.
– Rights and obligations.
• Potential liability varies depending on the nature of the agreement.
2-24© SHRM
Selection Process
2-25© SHRM
Step 1: Analyzing Application Forms
2-26© SHRM
Step 2: Interviewing
• Prescreening• In-depth interviews
– Structured– Patterned– Stress– Directive– Nondirective– Behavioral– Situational– Group
Questions should be job-related and nondiscriminatory.
2-27© SHRM
Interviewer Biases
StereotypingFirst-impression and similar-to-me errors
Contrast effect
Nonverbal bias
Questioninginconsistencies
Negative emphasis
Halo/horn effect
Cultural noise2-28© SHRM
An interviewer assumes that a woman will do poorly in a job that requires math and analytical skills. This interviewing bias is known as
A. horn effect.
B. cultural noise.
C. stereotyping.
D. negative emphasis.
Answer: C2-29© SHRM
Step 3: Testing andBackground Investigation
• Tests– Cognitive ability– Personality– Aptitude– Psychomotor– Assessment centers– Honesty/integrity– Polygraph– Substance abuse
• Background checks– Work reference– Verification of academic
credentials– Credit history– Motor vehicle– Criminal background
2-30© SHRM
Selection Reliability
• Ability to measure or predict behavior with consistency.
– Example: Scores for a test that is taken twice should be similar.
• The following errors may create inconsistent results:
– Failure to measure an important attribute
– Irrelevant questions in an interview
– Different time limits for people taking a test
– Rater bias in evaluating candidates
2-31© SHRM
Selection Validity
• Content validity– Degree to which a test measures knowledge, skills, and
abilities that are part of the job
• Construct validity– Degree to which a test measures a trait such as
intelligence
• Criterion-related validity– Correlation of test results to job performance
• Predictive
• Concurrent
2-32© SHRM
Criterion-Related Validity
Predictors Criterion Variable
Completed application form
Résumé data
Interview answers
Test scores
Performance evaluations
Productivity
Absenteeism
The greater the overlap between predictors and variables, the better the predictor.
Complete correlation = +1 or –12-33© SHRM
Approaches to Establishing Criterion-Related Validity: Concurrent Validity
Correlate two sets of numbers.
Test employees on key attribute.
Measure employees' job performance.
2-34© SHRM
Approaches to Establishing Criterion-Related Validity: Predictive Validity
Obtain correlation between these two numbers.
Measure all applicants on attribute.
Hire and wait for some time period.
Measure performance of newly hired employees.
2-35© SHRM
Realistic Job Previewing
• Helps a candidate make an informed decision.
• Allows the organization to objectively portray the job.
• Examples of job preview techniques may include:– Job telephone information line.
– Job simulations.
– Video presentations.
– Workplace tours.
– Interviews with job incumbents.
2-36© SHRM
Step 4: Contingent Job Offer
A conditional job offermay depend on:
• Verification of IRCA documents.
• A medical exam (if job-related and consistent with business necessity).
2-37© SHRM
Step 5: Employment Offer
• Formally communicated through an offer letter.
• Clearly states terms of the offer.• Avoids language that implies a contract
(states that employment is at will).• Clarifies contingencies (physical exam).• Clarifies acceptance details and deadline.
2-38© SHRM
Employment Contracts
• Agreement between employer and employee that explains the employment relationship.– Express contract is based on oral or written
words.
– Implied contract results from actions or conduct.
• Employment-at-will is presumed if a written employment contract does not exist.
2-39© SHRM
Which type of employment situation would MOST likely warrant a written employment contract?
A. A full-time telecommuter
B. A salesperson
C. A graphic artist
D. A department manager
Answer: B
2-40© SHRM
Retention
2-41© SHRM
Organizational Exit
• Manages the way people leave an organization.
• Layoffs or RIFs are based on:
– Skills.
– Work record.
– Seniority.
– Disparate impact implications.
– EEO/legal considerations.
• Management should document the criteria used to make layoff decisions.
• Separation should be considered a termination if there is no chance of a recall.
• Severance packages are not required by federal law.
2-42© SHRM
A firm is laying off 15% of its workforce due to declining global markets. What can HR do to help the remaining employees through the transition?
A. Run a series of regional focus groups with mid-level managers.
B. Publicize that exit interviews were conducted with all separated employees.
C. Regularly communicate with employees about ongoing business challenges.
D. Hold a corporate-wide teleconference to address rumors.
Answer: C2-43© SHRM
Wrongful Terminations
2-44© SHRM
Voluntary Retirement
• Management must:− Identify what units of the company are eligible to
participate in a voluntary program.
− Communicate that the plan is voluntary.
• The plan must comply with the Older Worker’s Benefit Protection Act.− Voluntary waivers or claims under ADEA are valid
only when waivers are “knowingly and voluntarily” made.
2-45© SHRM
The OWBPA requires that employees signing a waiver of their ADEA rights must
A. be given at least 14 days to consider the agreement.
B. receive severance pay or something of value.
C. consult an attorney prior to signing the waiver.
D. have at least three days to revoke the agreement after it is signed.
Answer: B2-46© SHRM
Exit Interviews
• Gain candid information from departing employees.
• Are conducted most often when terminations are voluntary.
• Are conducted by a neutral party.
• Exit form may be used to collect information.
• Comments are typically kept confidential.
• Assurance may be given that remarks will not be shared with a supervisor.
2-47© SHRM
Records Management
• Requirements may depend on:– Federal and state statutes.
– Status as a government contractor or subcontractor.
– Number of employees or purpose of record keeping.
– Industry, location, or customers.
2-48© SHRM