12-1
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.
12-2
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
12-3
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
12-4
Employment ContractsEmployment Contracts
Requirements for enforceable contract Parties to contract Form of contract Disclaimers Contingencies Other employment contract sources Unfulfilled promises
12-5
Employment ContractsEmployment Contracts
Requirements for enforceable contract
Offer
Acceptance
Consideration
Parties to contract
Employee or independent contractor
Third parties
Employment
contract
12-6
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
12-7
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
12-10
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)
12-11
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
12-12
Job Offer ProcessJob Offer Process
Formulation of job offer
Presentation of job offer
Job offer acceptance and rejection
Reneging
12-13
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
12-14
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
12-15
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
12-16
Strategies for presenting initial offer
Lowball
Competitive
Best shot
Formulation of Job OfferFormulation of Job Offer(continued)(continued)
12-17
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
12-18
Exh. 12.7: Example of aExh. 12.7: Example of aSales Approach to Job OffersSales Approach to Job Offers
12-19
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
12-20
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
12-21
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
12-22
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.
12-23
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.