Fluent Essays

BE VERY KEEN ON INSTRUCTIONS BEFORE YOU START HANDLING THE PAPER and REVIEW VERY KEENLY The Staffing Function Learning Objectives After completing this chapter, you should be able to: • View staffing as an organization-wide activity taking place in a complex legal environment. • Design jobs and plan for future human resource requirements. • Conduct employee placement in a manner that leads to quality hires. • Maintain an effective work force through compensation policies and other staffing activities. • Explain how staffing is related to building careers and working with unions. 4 Shekhardino/iStock/Thinkstock Introduction Chapter 4 4.1 Introduction In Chapter 1, we defined management as the process that consists of a collection of techniques used to lead the human resources in an organization to become productive. Notice that a key element of that definition is the human resource component. The people who work in an organi- zation are its most valuable resource, because they convert raw materials into finished products and services, which help generate profits for the business. People also design products and make decisions about when and how products and services are distributed to maximize organizational effectiveness. People are often the most valuable asset of the organization. At the same time, people can be the most expensive part of running a business and often pose the greatest chal- lenges to effective management (Mathis & Jackson, 1997). M A N A G E M E N T I N P R A C T I C E Zappos.com—Strategic Staffing Shoe stores lose one out of every three sales because the customer’s size is not in stock. This factor explains some of the success and growth of online shoe sales. The online shoe market share has reached over $3 billion. Zappos.com, which is an adaptation of the Spanish word for “shoe,” has captured a 20\% share of the overall shoe market. The organization has moved into sales of various products beyond footwear, increasing sales and market awareness. New product lines include cloth- ing, electronics, and accessories. Nick Swinmurn founded Zappos.com in 1999 after spending a day walking in a mall looking for a pair of shoes and being unable to find the pair he wanted. His first business concept was to create an inventory so large that the odds of the customer finding exactly the right pair would be very high. Zappos.com now maintains more than 4 million pairs of shoes in its inventory. The Zappos. com business model dictates that key customer contacts are made via the phone center. If a cus- tomer cannot locate the exact pair of shoes he or she wants, the center’s service representative will direct the person to two or three other companies that might have the item. Each phone operator is required to exhibit a consistently friendly, upbeat, and helpful demeanor. Zappos.com represents a prime example of a company that effectively completes the staffing function. The overall mission for the organization combines employee sat- isfaction with customer satisfaction. The quality of the company’s service begins with the company’s culture. The company’s recruiting and selec- tion processes reflect a commitment to the overall mission. Employees are carefully selected, and only those who show positive, customer- oriented attitudes are chosen. New employees are required to enroll in a four-week training session that prepares them to work in the call center. During the training, company (continued) Fuse/Thinkstock ▲▲ An effective organization combines employee satisfaction with customer satisfaction. Introduction Chapter 4 The Nature of Staffing Staffing is the achievement of organizational goals through the effective and efficient deployment of people. Staffing deals with people as a resource in the organization. It is more than a depart- ment called human resources. The typical human resources department deals with the design of formal systems to assist and support managers in the staffing function. But staffing is a distributed function of management itself. All managers are responsible for staffing within the organization and not just in one depart- ment. No matter what process the organization uses, managers make hiring and termination decisions, conduct training or supervise it, evaluate worker performance, assess worker suitabil- ity for advancement, discipline workers when necessary, and prepare the annual labor budget. In almost all cases, the organization has a manager who is responsible for maximizing the worker’s efficiency and achieving the highest grade of work output the worker is capable of (Taylor, 1911). This is the essence of the staffing function. CEO Tony Hsieh personally offers to “buy out” the trainees with a cash payment (up to $2,000) that allows each person to quit the company with money in his or her pocket. Those who remain consistently remind other employees of the importance of excellent customer service. Many are placed in non-phone-related jobs such as order fulfillment, inventory control, or finance. The training process ends with a graduation ceremony during which graduates recite the Zappos.com 10 core values, which include phrases such as “Deliver WOW,” “Create fun,” “A little weirdness,” “Pursue growth,” “Be passionate,” and “Be humble.” The employee environment reflects the company’s culture. Employees can personalize their cubicles. An abundance of free food is available every day. Employees are encouraged to be spontaneous, energetic, and have fun. In contrast to the free-flowing and short-lived dot-coms of the 1990s, Zappos.com employees are well trained, and they are constantly reminded that the customer is their top priority. Meeting customer needs is also part of the company’s compensation system. Employees who stay with Zappos.com receive excellent compensation, full health insurance, and dental benefits. Why doesn’t the company relocate the call center to somewhere cheaper? “We don’t think you’re going to give great customer service by outsourcing it,” Tony Hsieh calmly states. Hsieh, who already made a fortune with another Internet company, receives compensation from Zappos.com of about $36,000 per year. He works in a small cubicle at the center of the plant. Most of Zappos.com sales come from online purchases. Each order is shipped at no cost to the cus- tomer, who also can return it at no cost if necessary. Customers receive their purchase within just a few days of placing their order. Shoes that do not fit can be returned for full credit up to one year after the original purchase date. Why don’t other companies follow this business model, including the staffing system? Tony Hsieh speculates that it’s because “You don’t really see the payoff right away.” Building a company in this way takes time. On the other hand, 75\% of Zappos’ business comes from repeat customers. Most would agree that Zappos.com fulfills its mission: To Live and Deliver WOW (Clow & Baack, 2010, p. 255; Durst, 2007; ABC News Nightline, 2008). Discussion Questions 1. How has Zappos.com managed to capture 20\% of the overall shoe market? 2. In what way does the Zappos.com mission contribute to its success? 3. How does CEO Tony Hsieh’s staffing function model differ from those used by other companies? Introduction Chapter 4 Strategic Human Resource Management The organization’s strategic plan establishes the foundation of staffing. People are the most criti- cal asset in building and maintaining organizational capability. In principle, “Building organiza- tional capability requires very specific talent or competencies” (Christensen, 1997). Staffing the organization must be viewed by managers “in the same context as financial, technological, and other resources that are managed in organizations” (Mathis & Jackson, 1997, p. 199). To do other- wise does not appropriately align organizational resources to meet future operational demands. Strategic human resource management (SHRM) may be defined as a process in which all staffing activities are fully integrated into a program designed to help the overall organization achieve its strategic objectives. This perspective suggests that the human resources department should contribute to every aspect of a company’s operations and lead to a higher level of competi- tive advantage within the industry or environment. The “strategic best-fit” perspective regarding SHRM suggests that the human resources department should seek to match each specific func- tion or activity with the firm’s overall business strategy. A “configurational” approach to SHRM argues that “bundles” of HR practices should be managed collectively to improve business perfor- mance. Such bundles must be designed to fit various industries and specific business conditions. The “resource-based” perspective argues that the focus of SHRM should be to acquire, train, use, and retain the most competent employees, thereby helping the organization to achieve (Fisher, Schoenfeldt, & Shaw, 2006). What sets SHRM apart from earlier, more traditional, views of staffing is the long-term, strategic perspective. It suggests that human resources departments play vital roles in every aspect of a firm’s operations rather than simply performing a set of rote functions, such as recruiting, selec- tion, training, and collecting and maintaining employee records. A strategic human resource manager is charged with monitoring the external environment and developing strategies and tactics that mesh internal operations with the demands and contingencies of that external envi- ronment. At the same time, the human resources department still is expected to carry out its basic functions and activities. Thus SHRM contains practical, hands-on elements as well as more general theoretical and integrated views of the company. Staffing Functions As just noted, human resource management continues to carry out basic organizational func- tions; at the very least, they engage in the following major activities or functions: • job design • human resource planning • recruiting • selection • orientation • employee development • compensation management • performance assessment • employee discipline systems • workplace safety • career development • labor–management relations Introduction Chapter 4 Before evaluating these activities, however, we review the legal environment surrounding the staffing function and the conduct of the overall business organization. Legal Aspects of Staffing The staffing function takes place in a complex and changing environment. Social trends, shift- ing demographics, and legal regulation influence the employment process. As the population becomes more diverse and new legal issues arise, a key part of effective staffing involves adapting to these trends and rulings. The organization’s policies and work rules, combined with a myriad of national, state, and local laws and regulations, govern the workplace. Although this is not a law textbook, here we address the most significant and recent areas of concern to managers. Employment at Will One of the most significant and misunderstood legal doctrines affecting the employment rela- tionship is that of “at will” employment. In essence, it means that workers are free to sell their labor services to any employer, and employers may employ whomever they prefer and terminate that employment arrangement at any time and for any reason. But the application of employ- ment at will has limitations. Laws restrain employers from termination for reasons of discrimina- tion, retaliation for whistle-blowing, service in the military (e.g., called to duty in the reserves or National Guard), and jury service. In other instances, employers and employees are able to sever the employment relationship as long as both employer and employee comply with applicable laws. Fair Labor Standards Act The Fair Labor Standards Act (FLSA) was signed into law by Franklin D. Roosevelt in 1938. The law provides for a minimum wage ($7.25 effective July 24, 2009), overtime pay for hours worked in excess of 40 hours in the workweek for nonexempt (hourly) employees, workweek standardiza- tion, child labor restrictions, and standardized record keeping. The primary purpose of FLSA is to protect workers, but these standards help managers plan and budget work schedules and pro- vide clear guidelines for supervising employees. In 2012, President Obama proposed an increase to the minimum wage following his reelection; however, no action had been taken by the close of the 2013 legislative session. The Civil Rights Act of 1964 and EEOC The Civil Rights Act was signed into law during the Lyndon B. Johnson administra- tion with the express purpose of eliminating discrimination. It defined such discrimi- nation to include race, creed, color, sex, and national origin. In addition to mak- ing discrimination illegal in a variety of life experiences, the act specifically defines what constitutes illegal discrimination in employment relationships. The act also created the Equal Employment Opportunity Commission (EEOC). No other regulatory area has more impact on staffing, or more influence over organizations and managers, than the EEOC. All aspects of employment management are affected, including hir- ing, recruiting, training, compensating, disciplining, and terminating. Courtesy Everett Collection ▲▲ President Lyndon Johnson, watched by Martin Luther King Jr., signed the Civil Rights Act in 1964. Introduction Chapter 4 Sexual Harassment and Sexual Discrimination Sexual harassment is defined as Unwelcome sexual advances, requests for sexual favors, and other verbal or physical con- duct of a sexual nature constitute sexual harassment when this conduct explicitly or implic- itly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment. (U.S. EEOC, 2013b) It is a form of discrimination as defined in the Civil Rights Act of 1964 and EEOC regulations. There are numerous types of sexual harassment, but the two most widely recognized are sum- marized in Table 4.1 (Weitzer, 2002). Table 4.1 Forms of sexual harassment Quid pro quo Sexual advances or sexual favors are exchanged for favorable treatment, including • Better job assignments • Undeserved performance evaluation ratings • Promotions • Pay raises Hostile environment Work environment is characterized by the following: • Sexual innuendos in language, including jokes and sexual references • Inappropriate comments about appearance and dress • Unwanted touching • Signage (“girlie” calendars, cartoons) • Conduct toward the other gender or those with a different sexual orientation suggesting a discrepancy in how people are treated The Latin term quid pro quo literally means “this for that.” In the work environment, quid pro quo occurs when a subordinate’s job benefits are directly tied to his or her submission to unwelcome sexual advances. Hostile working environments are created in various ways that lead to impaired job satisfaction. While impairment could be a subtle or significant condition, the employee has a right to be free from such acts in the work environment. The Age Discrimination in Employment Act This 1967 federal statute is intended to protect workers over the age of 40 against discrimina- tion based on age. The EEOC defines age discrimination as “discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, train- ing, fringe benefits, and any other term or condition of employment” (U.S. EEOC, 2013a). The law also specifies that harassment based on a person’s age (if over 40) is illegal, although off- hand comments and isolated incidents by themselves do not constitute harassment that creates a “severe or offensive environment.” Still, the intended effect of the law is to create an age-protected class of workers and so to prevent older workers from being subjected to employment actions based on age status. As the work force continues to become older, you can expect that the Age Discrimination in Employment Act will more frequently apply to workplace decisions regarding senior employees. Job Design and Human Resource Planning Chapter 4 The Americans with Disabilities Act of 1990 (ADA) The Americans with Disabilities Act (ADA) is designed to protect individuals with disabilities from being discriminated against by employers. The law does not provide protection from short- term conditions or temporarily disabling injuries, but from long-term conditions that signifi- cantly impair an individual. The ADA requires employers to make reasonable accommodation for such disabilities in employment staffing arrangements unless providing such an accommodation would place an undue hardship on the employer. Family and Medical Leave Act In 1993, Congress enacted the Family and Medical Leave Act (FMLA) to cover circumstances in which various events disrupt an employee’s ability to perform effectively. The law requires larger employers to provide employees job-protected unpaid leave due to a serious health condition that makes the employee unable to perform his or her job, or to care for a sick family member, or to care for a new child (either natural-born or adopted). The law also covers caring for an injured member of the armed services. 4.2 Job Design and Human Resource Planning Staffing has a close connection with the organizing function. The first step of organization, job design, results from the collaboration between functional managers and the human resources department. Individual jobs require analysis of the tasks to be completed as well as identification of skills and talents needed to complete those tasks. After company managers have assigned the jobs, they can then begin the process of planning for current and future personnel needs. Job Design As noted in Chapter 3, job design occurs when managers determine the tasks needed to be done, who will do them, and the selection criteria to be used to choose employees and place them on the job. This means that job design is the process of “organizing tasks, duties, and responsibilities into a productive unit of work” (Mathis & Jackson, 1997). Job design involves identifying appropriate, job-related knowledge, skills, and abilities to ensure that assigned work can be completed successfully. Designers consider the work, the environment, and the impact of the work on employees. The standard approach to job design involves three steps: job analysis, job description, and job specification. Job Analysis The process of assigning tasks to jobs, or job analysis, is conducted by the human resources department working in conjunction with departmental managers. Three forms of commonly employed job analysis are comparison with other companies, experimentation, and reflective planning. Comparison with other companies can result from something as simple as a phone call to a friend in another firm to ask how that company defines duties for a particular job. For example, the posi- tion of administrative assistant varies widely, depending on the industry. Someone assigned to manage a new walk-in emergency health care facility might call leaders of similar organizations for advice. Comparisons can also take place more formally. This process normally involves using a resource such as the Dictionary of Occupational Titles (U.S. Department of Labor, 1977). Job Design and Human Resource Planning Chapter 4 Experimentation methods begin with simply trying various methods to learn which is most effec- tive and efficient for performing a job. This process allows managers to evaluate workload to aid the organization of workflow. For instance, if employees cannot keep up with their job respon- sibilities, some tasks can be removed; if an employee is bored, additional tasks may be assigned. One form of experimentation, the time-and-motion study designed by Frank Gilbreth, studies jobs as they are performed by using a stopwatch and sometimes even filming specific tasks. The goal is to eliminate wasted motion and create an efficient set of job tasks by having them carried out in various ways to find the most efficient approach. As an example, a UPS truck driver might try numerous routes while seeking the optimal pattern for loading, delivering, and unloading items. This effort would be a form of experimentation and a quasi time-and-motion approach. Reflective planning requires that managers think about how jobs should be designed. In some organizations, the public relations function is performed by specialists trained in media relations and writing. Those jobs are clearly defined as being more managerial. In other companies, a job in the public relations department is more of a marketing activity that centers on finding sponsor- ships with charities and other groups to generate positive publicity. The job title stays the same, but the job itself is quite different. Therefore, to determine the goals of particular jobs before deciding which employees are most qualified, managers must spend time in reflection. Most recently, many organizations have begun to create positions associated with monitoring and responding to what appears in social media and on the Internet. When Taco Bell’s monitor- ing group discovered visual images of an employee licking the shells of tacos, the organization was able to respond immediately, thereby limiting harm to the company’s image. Without the design of a social media monitor job, which may be created through a reflective planning process, the damage to Taco Bell’s image might have been much worse (Kim, 2013). Job analysis is a vital first step in the design of an organization. Consider, for example, the differ- ences between designing jobs in various occupations: sales, production/manufacturing, research and development, accounting, finance, quality control, purchasing, servicing, marketing, and public relations. Each job type must be tailored to the organization, including accounting for differences between profit-seeking companies, nonprofits, and governmental agencies. Then, jobs must match various industries. Selling intangible items such as life insurance differs dramatically from selling cars or heavy equipment. Marketing programs vary widely; some emphasize adver- tising while others feature a strong element of pricing and price discounting. Servicing depart- ments for brick-and-mortar retail stores are substantially different from those offering products online or over the phone, and so forth. Individual department managers should work carefully with those in human resources departments to clearly spell out which tasks are involved, how they will be completed, and the types of skills needed to do the job effectively. Only after a thor- ough job analysis can a quality job description be created for use in recruiting and selecting the proper individuals. Job Description When the manager and human resource specialist have agreed on the tasks that belong to each job, the next organizational step in job design takes place—creating a job description. A job description includes a formal task list that is used in two main ways. First, job descriptions are part of the recruiting process that allows applicants to review what exactly a job entails. Second, job descriptions often appear in a company manual, handbook, or on an organizational website. Managers and employees can then refer to the listing to see which employee is responsible for any given task. Writing clear job descriptions is an essential part of organizing a business. Job Design and Human Resource Planning Chapter 4 Job Specification Once job descriptions are created, organizers generate a list of requirements that applicants must have to be considered for a particular job. This list, a job specification, identifies the eligibil- ity requirements or qualifications needed to perform a job. Table 4.2 presents a standard set of specifications. Table 4.2 Components of job specifications Qualification Examples Level of education High school diploma, associate’s degree, college degree, MBA, PhD Amount and types of experience Number of years, job experience Special skills—physical Ability to lift heavy weights, work outdoors Special skills—technical Ability to use software programs Personality characteristics Outgoing, self-starter, confident, effective public speaker Legal requirements Meet with current laws for employment Job specifications are often posted on company websites and in publications associated with the recruiting process. The usual order of operations at this level of organizational development is as follows: First, specifications are published online—and in some cases, in print media, most nota- bly newspapers and trade journals. Second, job specifications are published in particular employ- ment markets where pools of employers and job seekers meet, such as LinkedIn, Career Finder, and Monster.com. This step helps streamline the application process. Third, specifications may be sent to a trade show for those in a particular industry. Impact on Employees To understand the impact of job design on employees who will actually carry out the work, Hackman and Oldham (1976) explain the potential motivating factors of a job for a worker. The five dimensions used in the analysis are described in Table 4.3. Table 4.3 Core job dimensions Skill variety The number and degree of skills, abilities, and talents used in performing the job Task identity The degree to which the job includes a complete and identifiable piece of work Task significance The personal impact on other people through human interaction Autonomy The amount of freedom, independence, and working without supervision involved in the job Feedback Performance-related knowledge and information These five elements combine to reinforce three factors. Experienced meaning fulness expresses whether the employee sees the job as important, valuable, and worthwhile. Experienced respon- sibility measures the degree to which the employee feels personally accountable for outcomes. Job Design and Human Resource Planning Chapter 4 Knowledge of results suggests whether the person readily knows whether the job has been done well (Nadler, Hackman, & Oldham, 1979). Note Hackman and Oldham’s basic premise: “The more, the better.” These authors believed that increasing amounts in each of the five core job dimensions would dramatically increase the “motivating potential” of the job itself, regardless of pay, benefits, or other employment circum- stances. Others have challenged this assertion, suggesting instead that these factors have positive impact on only some, but not all, employees (Baack, 2012). Once jobs have been designed and staffed, managers track job success, review job content and growth, and conduct ongoing job analysis to redefine or refine jobs and ensure that they continue to meet expectations. One of the final acts of this process is to develop a job or position descrip- tion incorporating all job-related information. Thus managers have a tool kit at their disposal to recruit, select, train, compensate, and evaluate worker performance. Recent Trends in Job Design Over the past half century, job design has undergone many changes. Beyond the development and implementation of laws seeking to protect workers from various managerial actions, addi- tional trends have emerged. The most notable impact results from the continual evolution of workplace technologies. Such improvements change the methods by which jobs are performed and other aspects of everyday work. The Internet and newly developed communication systems affect many jobs. For example, in the past, a salesperson would expect to be constantly traveling to establish face-to-face relationships with customers. Now, however, the use of programs such as Skype makes it possible to visit with people across the company without leaving the sales office. Travel and the salesperson’s time can be scheduled more efficiently. Job descriptions have changed as a result. Further, telecommuting jobs have risen dramatically. These jobs are designed to enable an employee to live in an entirely different location and only rarely travel to the actual workplace. Telephones, Internet and satellite transmissions, instant messaging, and email make it pos- sible for a person to work at home or in a remote location. Some major companies that fea- ture telecommuting jobs as a significant part of the work force include Cisco, Accenture, Intel, PricewaterhouseCoopers, and American Fidelity Insurance (CNN Money, 2012). Other job design changes result from com- puterization and increasing use of robotics in manufacturing systems. Job descriptions include the use of computer skills when con- ducting tasks in …