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P A R T 4 CH 12 Managing Human Talent
E The Strategic Role of HRM Is to
S After studying this chapter, you should be able to:
Drive Organizational Performance
E 1. Explain the strategic role of human resource management.
IN The Strategic Approach
IV 2. Describe how federal legislation and societal trends influence TL T
Building Human Capital to Drive human resource management. U C Performance
JE 3. Explain what the changing social contract between
O The Impact of Federal Legislation B
organizations and employees means for workers and human on HRM resource managers. O
TER The Changing Social Contract
4. Describe tools and techniques managers use to determine
P The End of Lifetime Employment
their future staffing needs and to recruit and select the right
A Leading-Edge HR Practices employees. H NING
C Finding the Right People
R 5. Describe how organizations develop an effective workforce Human Resource Planning A
through training and performance management. E Recruiting
L 6. Explain how organizations maintain a workforce through the Selecting
administration of rewards, benefits, and terminations. Developing Talent Training and Development Performance Management
Maintaining an Effective Workforce Rewards Benefits Termination
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 1
Getting the Right People on the Bus1
INSTRUCTIONS: As a manager, how much emphasis will you give to getting the right people on your team? Find INTRODUCTION
out by responding to the following statements based on your expectations and beliefs for handling
the people part of your management job. Indicate whether each item is Mostly True or Mostly False 2 for you. Mostly True Mostly False
1. I will readily fire someone who isn’t working out for the interests of the organization. __________ __________
2. Selecting the right people for a winning business team is as
important to me as it is to a winning sports team. __________ __________ ENVIRONMENT
3. I expect to spend 40 to 60 percent of my management time on
issues such as recruiting, developing, and placing people. __________ __________ 3
4. I will paint a realistic picture of negative job aspects that will help
scare off the wrong people for the job. __________ __________
5. My priority as a manager is first to hire the right people, second to
put people in the right positions, and third to decide strategy and vision. __________ __________ PLANNING
6. With the right people on my team, problems of motivation and
supervision will largely go away. __________ __________
7. I expect that hiring the right people will be a lengthy and arduous process. __________ __________ 4
8. I view firing people as helping them find the place where they belong
so that they can find fulfillment. __________ __________
SCORING AND INTERPRETATION: Most managers are shocked at the large amount of time, effort, and skill
required to recruit, place, and retain the right people. In recent years, the importance of “getting the ng
right people on the bus” has been described in popular business books such as Good to Great by Jim ORGANIZING
Collins and Execution: The Discipline of Getting Things Done by Larry Bossidy and Ram Charan. The rganizi
right people can make an organization great; the wrong people can be catastrophic. O
Give yourself 1 point for each item you marked as “Mostly True.” If you scored 4 or less, you may 5
be in for a shock as a manager. People issues will take up most of your time, and if you don’t handle
people correctly, your effectiveness will suffer. You should learn how to get the right people on the bus
and how to get the wrong people off the bus. The faster you learn these lessons, the better a manager
you will be. A score of 5 or more suggests that you have the right understanding and expectations for
becoming a manager and dealing with people on the bus. LEADING
Faced with soaring demand for deliveries and mass employee absences in its ware-
houses during the COVID-19 pandemic, Amazon hired 80,000 new workers in SNAPSHOT 6
just a few weeks in March 2020 and had plans to add at least 20,000 more. This
massive challenge was compounded by growing pressure from warehouse employees and
other hourly workers for the company to do more to protect them as the coronavirus
continued to spread. Amazon implemented a variety of new procedures, including check-
ing employees’ temperatures daily, providing masks and gloves at all its warehouse facili-
ties, separating tables and chairs in break rooms, and eliminating the meetings between CONTROLLING
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 408 PART 4 ORGANIZING
employees and managers that typically occur before each
shift. Managers also put new human resource (HR) poli-
cies into effect, including expanded paid sick leave, higher
wages, and unlimited unpaid time off for a certain period of time.2
The COVID-19 pandemic dramatically altered labor ty Images
market conditions and human resource practices in the
United States and around the world in 2020. Many com-
panies’ HR departments had to temporarily lay off employ- CON/AFP/Get
ees, and some companies shut their doors for good. HR
departments in a few organizations, such as Amazon, faced
the opposite problem, needing to scale up hiring to meet ALERIE MA V
increased demand for their products or services and manage
the chal enge of keeping workers safe in a COVID-19 world.
Like all aspects of management, HR issues are continually shifting. All managers, no
matter their hierarchical level or functional area, deal with these kinds of challenges, such
as finding and training the right people, evaluating performance fairly, and sometimes firing
people for the good of the team or organization.
This chapter explores the topic of human resource management in detail. The term
human resource management (HRM) refers to the design and application of formal
systems in an organization to ensure the effective and efficient use of human talent to
accomplish organizational goals.3 It includes activities undertaken to attract, develop, and
maintain an effective workforce. Managers have to find the right people, place them in
positions where they can be most effective, and develop them so that they contribute to
company success. Imagine the challenge Amazon faced in hiring 80,000 qualified employees
in a short period of time, and you can see why HRM is a critical skill for both business and nonprofit organizations.
12-1 The Strategic Role of HRM Is to
Drive Organizational Performance
Managers around the world often cite human capital as the top factor in maintaining
competitive success, which reflects the critical role of managing talent. Talent manage-
ment has emerged as a central topic of concern not only for human resource managers
but for all managers searching for ways to keep their organizations thriving in the fast-
changing, competitive environment of the early twenty-first century.4 Smart managers
know that employees are the company—if they don’t perform well, the company doesn’t
stand a chance of succeeding. Human capital refers to the economic value of the com-
bined knowledge, experience, skills, and capabilities of employees.5 Exhibit 12.1 shows
the top three factors cited by CEOs as contributing to organizational success, based
on a survey of more than 1,700 top executives from around the world. Human capital
ranked far higher than assets such as technology, physical resources, and access to raw materials.6
12-1A THE STRATEGIC APPROACH
HRM has shed its old “personnel” image and gained recognition as a vital participant in
formulating and carrying out corporate strategy.7 The best HR departments not only
support strategic objectives, but also actively pursue an ongoing, integrated plan for
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 409
E X H I B I T 12.1 Top Three Factors for Maintaining Competitive Success
Percentage of CEOs reporting these factors as important for competitive success: Human Capital 71% Customer Relationships 66% Product and Service 52% Innovation
SOURCE: “Leading Through Connections: The IBM 2012 Chief Executive Officer Study,” reported in Eric Lesser
and Carl Hoffman, “Workforce Analytics: Making the Most of a Critical Asset,” Ivey Business Journal (July–August
2012), www.iveybusinessjournal.com/topics/strategy/workforce-analytics-making-the-most-of-a-critical-asset (accessed August 27, 2012).
furthering the organization’s performance.8 Research has found that effective HRM and
the alignment of HR strategies with the organization’s strategic direction have a posi-
tive impact on performance, fostering both higher employee productivity and stronger financial results.9
Four Seasons Hotels and Resorts provides a clear illustration of how aligning HR
strategies with the firm’s strategic direction positively influences performance. As we
described in Chapter 8, corporate strategy at Four Seasons focuses on defining luxury SNAPSHOT
as great service rather than as grand architecture and luxurious décor. Four Seasons’
HR strategy plays a crucial role in creating the company’s competitive advantage.
Rather than treating frontline labor as a cost to be minimized, Four Seasons treats
its frontline employees like gold. The standard hotel HR strategy accepts turnover of
frontline employees as inevitable, so executives focus their selection, development, and 4
retention efforts primarily on general managers. In contrast, the Four Seasons HR
strategy is to view frontline employees as key personnel and focus strongly on hiring,
training, motivating, developing, and rewarding them in ways that encourage them to
provide exceptional service to hotel customers and see their entry-level jobs as
the starting point of a long-term career. Taking a strategic approach to HRM ng
gave Four Seasons happier, more loyal, and more capable frontline employees, “If each of us hires ORGANIZING
enabling the company to deliver superior service and charge higher prices than people who are rganizi
many of its competitors.10 O
The strategic approach to HRM recognizes three key elements. First, all smaller than we are,
managers are involved in managing human resources. Second, employees are
viewed as assets. No strategy can be implemented effectively without the right we shall become a
people to put it into action. Employees—not buildings and machinery—give a company of dwarfs.
company its competitive edge. Third, HRM is a matching process, integrating the
organization’s strategy and goals with the correct approach to managing human But if each of us
capital.11 Some current strategic issues of particular concern to managers include hires people who are the following: bigger than we are,
• Hiring the right people to become more competitive on a global basis
• Hiring the right people for improving quality, innovation, and customer service we shall become a
• Knowing the right people to retain after mergers, acquisitions, or downsizing company of giants.”
• Hiring the right people to apply new information technology (IT) to HRM
—DaviD Ogilvy (1911–1999), processes FOUNDER OF THE OGILVY & MATHER ADVERTISING AGENCY
All of these strategic decisions determine a company’s need for skills and employees.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 410 PART 4 ORGANIZING Concept Connection
Lowe’s 310,000 employees help cus-
tomers with remodeling, building, and
gardening ideas at its 2,002 stores. They
cut lumber, blinds, pipe, and chains;
thread pipes; assemble items; provide
computer project design and landscape
garden design; match paint colors; teach
how-to clinics; and offer many other
services. Managers know that provid- ty Images
ing superior customer service depends
on human capital, so they invest in
finding the best people and helping them k Djansezian/Get
develop and apply their combined knowl- evor K
edge, skills, experience, and talent.
This chapter examines the three primary goals of HRM, as illustrated in Exhibit 12.2.
HRM activities and goals do not take place inside a vacuum, but rather occur within the
context of issues and factors affecting the entire organization, such as globalization, chang-
ing technology, the need for rapid innovation, quick shifts in markets and the external
environment, societal trends, government regulations, and changes in the organization’s
culture, structure, strategy, and goals.
The three broad HRM activities outlined in Exhibit 12.2 are to find the right people,
manage talent so that people achieve their potential, and maintain the workforce over the long term.12
E X H I B I T 12.2 Strategic Human Resource Management Find the Right People HRM planning Job analysis Forecasting Recruiting Selecting Company Strategy Maintain an Effective Workforce Manage Talent Wages and salary Benefits Training Labor relations Development Terminations Appraisal
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 411
12-1B BUILDING HUMAN CAPITAL TO DRIVE PERFORMANCE
In many organizations, especially those that rely more on employee information, creativity,
knowledge, and service rather than on production machinery, success depends on the abil-
ity to manage human capital, as described earlier. To build human capital, HRM develops
strategies for finding the best people, enhancing their skills and knowledge with training
programs and opportunities for personal and professional development, and providing com-
pensation and benefits that support the sharing of knowledge and appropriately reward
people for their contributions to the organization.13
The importance of human capital for business results is illustrated in Exhibit 12.3,
which shows a portion of a framework developed by Accenture and used by software and
services company SAP. Managers at SAP needed a way to evaluate and revise the com-
pany’s human capital processes to shift to a new strategy that called for stronger customer
focus and greater individual employee accountability. The idea is to show how investments
in human capital contribute to stronger organizational performance and better financial
results. At the bottom of the framework (level 3), managers assess internal processes such
as workforce planning, career development, performance appraisal, and so forth. Managers
use these activities to increase human capital capabilities that then drive higher performance
in key areas such as innovation or customer service (level 2). Improvements in key perfor-
mance areas, in turn, lead to improved business results (level 1).14
E X H I B I T 12.3 The Role and Value of Human Capital Investments Level 1 4 Revenue Total Return to Growth ROIC or ROE Shareholders Business Results ng Level 2 ORGANIZING rganizi O Productivity Quality Innovation Customer Service Key Performance Drivers Level 3 Career Human Capital Development Strategy Recruiting Rewards and Performance Workforce Recognition Appraisal Planning Human Capital Processes
SOURCE: Adapted from Susan Cantrell et al., “Measuring the Value of Human Capital Investments: The SAP Case,” Strategy & Leadership 34, no. 2 (2006): 43–52.
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The Kitchen Aid division of Whirlpool Corporation provides an example of how SNAPSHOT
investing in human capital pays off. Jennifer Hanna started working at Kitchen Aid right
out of high school in the early 1990s, saying she “wanted to find a company that would
invest in me at the age of 18.” The company helped pay Hanna’s way through community
college and Ohio’s University of Findlay, later encouraged and supported her pursuit of
an MBA, and eventually added her to the top leadership team. Today’s employees are
finding the same support. “It’s not a dead-end job anymore,” said one employee who
started at Whirlpool as a teenager and now works as a manager. Whirlpool and Kitchen
Aid managers know that without people coming to work every day and performing at
their best, the work comes to a halt.15 Remember This
• Human resource management (HRM) refers to the
• Four Seasons Hotels and Resorts takes a strategic
design and application of formal systems to ensure the
approach to HRM, achieving competitive advantage by
effective and efficient use of human talent to accomplish
focusing on hiring, training, motivating, developing, and organizational goals.
rewarding frontline employees in ways that encourage
• HRM includes activities undertaken to attract, select,
them to provide exceptional service.
develop, and maintain an effective workforce.
• Human capital refers to the economic value of the
• HR managers are vital players in corporate strategy
combined knowledge, experience, skills, and capabilities
because no strategy can be effective without the right of employees. people to put it into action.
Creating a Greener World
The “You” in Sustainability “You are our
sustainability edge!” is the new slogan intended to
bring employees on board for sustainability at HSBC
Bank. HSBC carried employee involvement to a new
level by promoting individual projects through its
Climate Champions Program. It paved the way for this
initiative by partnering with powerful environmental
organizations, including the Smithsonian Institution,
Earthwatch, and the Climate Group. Working along-
side Earthwatch scientists, HSBC employees complete k.com
climate-related business projects, gaining skills and oc st ter
developing methods that can be transferred to the
workplace. In addition, HSBC offers environmental ong/Shut
awareness training programs to all employees. Its Cli- W or
mate Champions program has ignited employee curi- . Vict
osity and excitement. The program tells participants, Dr
“You own this project. You are our sustainability edge.”
Sources: Michelle Man Suet Law, Peter Hills, and Billy Chi Hang Hau, “Engaging Employees in Sustainable Development: A Case Study of
Environmental Education and Awareness Training in Hong Kong,” Business Strategy and the Environment 26 (2017): 84–97; and Matthew
Gitsham, “Experiential Learning for Leadership and Sustainability at IBM and HSBC,” Journal of Management Development 31, no. 3 (2012): 298–307.
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 413
12-2 The Impact of Federal Legislation on HRM
Managing HR effectively is a complex challenge for managers. It is critically important that
managers understand and apply a variety of federal laws that have been passed to ensure
equal employment opportunity (EEO). Some of the most significant legislation and execu-
tive orders are summarized in Exhibit 12.4. The point of these laws is to stop discrimina-
tory practices that are unfair to specific groups and to define enforcement agencies for
these laws. EEO legislation attempts to balance the pay given to men and women (though
E X H I B I T 12.4 Historically Important Federal Laws Related to Human Resource Management Federal Law Year Provisions Equal Opportunity/ Discrimination Laws Civil Rights Act 1991
Provides for possible compensatory and punitive (Amendment)
damages, plus traditional back pay, for cases of intentional
discrimination brought under Title VII of the 1964 Civil
Rights Act. Shifts the burden of proof to the employer. Americans with 1990
Prohibits discrimination against qualified individuals by Disabilities Act (ADA)
employers on the basis of disability and demands that
“reasonable accommodations” be provided for disabled
employees to allow performance of duties. Vocational Rehabilitation 1973
Prohibits discrimination based on physical or mental Act
disability and requires that employees be informed about 4 affirmative action plans. Age Discrimination in 1967 (amended in
Prohibits age discrimination and restricts mandatory Employment Act (ADEA) 1978 and 1986) retirement. Civil Rights Act, Title VII 1964
Prohibits discrimination in employment on the basis of
race, religion, skin color, sex, or national origin. ng Compensation/ Benefits Laws ORGANIZING rganizi Health Insurance 1996
Allows employees to switch health insurance plans when O Portability and
changing jobs and get the new coverage regardless of Accountability Act
preexisting health conditions; prohibits group plans from (HIPAA) dropping a sick employee. Family and Medical Leave 1993
Requires employers to provide up to 12 weeks unpaid Act (FMLA)
leave for childbirth, adoption, or family emergencies. Equal Pay Act 1963
Prohibits gender-based differences in pay for substantially equal work. Health/Safety Laws Patient Protection and 2010
Imposes a fee on firms with 50 or more employees if Affordable Care Act
the government subsidizes their employees’ health care (PPACA)
coverage; prevents insurers from denying coverage based on
preexisting conditions or charging women more than men. Consolidated Omnibus 1985
Requires continued health insurance coverage (paid by Budget Reconciliation Act
the employee) following termination. (COBRA) Occupational Safety and 1970
Establishes mandatory safety and health standards in Health Act (OSHA) organizations.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 414 PART 4 ORGANIZING
current statistics show that women are still paid only 82 percent of what men are paid for
similar work); provide employment opportunities without regard to race, religion, national
origin, and gender identity; ensure fair treatment for employees of all ages; and avoid dis-
crimination against disabled individuals. Working as an HR manager often requires keeping
detailed records to document compliance with federal laws and regulations. The legal and
regulatory environment is constantly changing, and HR managers have to stay on top of
issues that might have legal consequences. As one example, in mid-2020, the U.S. Supreme
Court ruled that Title VII of the Civil Rights Act of 1964, which prohibits discrimination
“because of sex,” would also prohibit discrimination against gay, lesbian, and transgender employees.
The Equal Employment Opportunity Commission (EEOC) created by the Civil Rights
Act of 1964 initiates investigations in response to complaints concerning discrimination.
Discrimination occurs when hiring and promotion decisions are made based on criteria
that are not job-relevant. For example, refusing to hire a Black applicant for a job that he
is qualified to fill and paying a woman a lower wage than a man for the same work are dis-
criminatory acts. When discrimination is found, remedies include providing back pay and
taking affirmative action. Affirmative action requires that an employer take positive steps
to guarantee equal employment opportunities for people within protected groups.
Failure to comply with EEO legislation can result in substantial fines and penalties
for employers. Suits for discriminatory practices can cover a broad range of employee
complaints. One issue of growing concern is sexual harassment, which is also a violation
of Title VII of the Civil Rights Act. The EEOC guidelines specify that behavior such as
unwelcome advances, requests for sexual favors, and other verbal and physical conduct
of a sexual nature becomes sexual harassment when submission to the conduct is tied to
continued employment or advancement or when the behavior creates an intimidating,
hostile, or offensive work environment.16 Sexual harassment will be discussed in more detail in Chapter 13.
Exhibit 12.4 also lists major federal laws related to compensation and benefits and
health and safety issues. This is just a sampling of the federal laws that HR managers
must understand and comply with. In addition, many states and municipalities have
their own laws that relate to HR issues. California, for example, requires that companies
with 50 or more employees provide sexual harassment training for all employees every
two years.17 Businesses and managers may agree or disagree with these laws depending
on how the laws affect the recruitment and treatment of their employees. In 2016, the SNAPSHOT
governor of Mississippi signed the controversial Mississippi Religious Liberty Accom-
modations Act, which would allow religious groups and some private businesses to
refuse to serve gay customers based on personal faith. In the case of this state law,
many corporations and government entities disagreed. Several state, city, and county
governments restricted travel by their employees to Mississippi. Companies such
as Nissan, Tyson Foods, MGM Resorts, and Toyota, which employ large numbers
of people in the state, denounced the new bill, as did the Mississippi Manufactur-
ers Association, the Mississippi Economic Council, and other groups that represent smaller businesses.18
The scope of HR legislation is increasing at federal, state, and municipal levels. Com-
panies operating internationally also must be aware of laws related to HRM in the various
countries in which they do business. In addition, social and technological changes bring
new legal challenges. Nearly a decade ago, the National Labor Relations Board (NLRB)
filed its first lawsuit related to social media when it brought suit on behalf of Dawnmarie
Souza, who was fired because of a comment she made on Facebook. Since then, the NLRB
has been involved in a steady stream of similar cases.19
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 415 What Is Your Focus?20
INSTRUCTIONS: This questionnaire will give you an idea of your natural orientation toward systematic recordkeeping.
Think about your underlying motivations when doing tasks on a typical day at school or work. Respond
to each of the following statements based on whether it is Mostly True or Mostly False for you. There
are no right or wrong answers, so answer honestly to receive accurate feedback. Mostly True Mostly False
1. I feel a sense of relief when I do well on a project or exam. __________ __________
2. I focus on getting the details of my work done correctly. __________ __________
3. I feel it is very important to carry out obligations placed on me. __________ __________
4. I always try to make my work as accurate and error-free as possible. __________ __________
5. For me, it is important not to do things wrong. __________ __________
6. I think about and focus mostly on achieving positive outcomes in my life. __________ __________
7. I like to finish a lot of work in a short amount of time. __________ __________
8. I frequently imagine how I will achieve my hopes and aspirations. __________ __________
9. I feel a sense of joy when I do well on a project or exam. __________ __________
10. I am typically oriented toward accomplishing things mostly 4
for my growth and satisfaction. __________ __________
SCORING AND INTERPRETATION: These questions represent two types of mental regulatory focus during your
work and school life, called promotion and prevention. Give yourself one point for each “Mostly True” answer. ng ORGANIZING
1. Prevention Focus: Sum the points for questions 1–5: __________ rganizi O
2. Promotion Focus: Sum the points for questions 6–10: __________
Your Regulatory Focus Score (subtract the Promotion Focus score from the Prevention Focus score): __________
Regulatory focus differentiates between internal motivation for promotion versus prevention. Promotion
means a mental focus on winning desired outcomes and success, whereas prevention is a focus on avoiding dif-
ficulties and failure. If your regulatory focus score is negative, you are likely a promotion-oriented person who
is motivated by positive outcomes and winning and who pursues goals to satisfy your hopes and wishes. If your
score is positive, you are likely a prevention-oriented person who focuses on not losing rather than on win-
ning, and who seeks to avoid failure and mistakes and to meet obligations and commitments. A positive score
(prevention) may be associated with success in an HR department, which involves routine procedures and legal
recordkeeping. A negative score (promotion) would more likely be associated with work in sales and marketing departments.
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 416 PART 4 ORGANIZING Remember This
• HR managers must understand and apply a variety of
• Affirmative action requires that employers take positive
federal laws that prohibit discrimination, establish safety
steps to guarantee equal employment opportunities for
standards, or require organizations to provide certain
people within protected groups. benefits.
• Nearly a decade ago, the National Labor Relations Board
• Discrimination occurs when hiring and promotion
(NLRB) filed its first suit related to social media; it has been
decisions are based on criteria that are not job
involved in a steady stream of social media–related cases relevant. since then.
12-3 The Changing Social Contract
Another current issue is the changing nature of careers and a shift in the relationship
between employers and employees.
12-3A THE END OF LIFETIME EMPLOYMENT
In the old social contract between organization and employee, the employee could contrib-
ute ability, education, loyalty, and commitment and expect in return that the company would
provide wages and benefits, work, advancement, and training throughout the employee’s
working life. Then along came globalization, outsourcing, hyper-competition, and other
volatile changes in the environment. Consider the following list found on a bulletin board
at a company undergoing major restructuring:
• We can’t promise how long we’ll be in business.
• We can’t promise that we won’t be acquired.
• We can’t promise that there’ll be room for promotion.
• We can’t promise that your job will exist when you reach retirement age.
• We can’t promise that the money will be available for your pension.
• We can’t expect your undying loyalty, and we aren’t even sure we want it.21
This list reflects a somewhat negative view of the new employer–employee relationship,
but the evolving social contract has some positive aspects as well. In a sense, companies and
employees become allies helping one another grow stronger. Companies today expect and
encourage employees to take control of their own careers, but in successful organizations
managers and employees work together to actively create opportunities that simultaneously
meet the needs of the organization and give employees the chance to develop their skills
and advance their careers. In such environments, employees help the company become more
adaptable, while the company helps the employee become more employable.22
Exhibit 12.5 lists some elements of the new social contract’s aspirations. This new con-
tract is based on the concept of employability rather than lifetime employment. Individuals
are responsible for developing their own skills and abilities and demonstrating their value
to the organization. The employer, in turn, invests in creative training and development
opportunities so that people will be more employable when the company no longer needs
their services. This means offering challenging work assignments, opportunities to partici-
pate in decision making, and access to information and resources. In addition, an important
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 417
E X H I B I T 12.5 The Changing Social Contract
New Contract Aspirations Old Contract Employee
• Employability; personal • Job security responsibility
• Partner in business improvement
• A cog in the machine
• Learning; skill development • Knowing Employer
• Creative development • Standard training opportunities programs
• Lateral career moves; incentive
• Traditional compensation compensation package
• Challenging assignments • Routine jobs
• Information and resources;
• Limited information and decision-making authority authority
SOURCES: Based on Louisa Wah, “The New Workplace Paradox,” Management Review (January 1998): 7;
and Douglas T. Hall and Jonathan E. Moss, “The New Protean Career Contract: Helping Organizations and
Employees Adapt,” Organizational Dynamics (Winter 1998): 22–37.
challenge for HRM is revising performance evaluation, compensation, and other practices
to be compatible with the new social c.ontract.
The new social contract places more of the risk associated with changing economic
conditions on employees than was traditionally the case. An extreme case illustrating the
shift in the social contract is the emergence of the gig economy in the early 2010s, where
people could sign up for jobs quickly and easily with little more than a smartphone. A “gig”
implies a job that lasts for a specified period of time and a short-term commitment. As
the United States began pulling out of the 2008–2009 recession, job hunters flocked to
online platforms like car hire services Uber and Lyft, meal delivery firms GrubHub and 4
DoorDash, and odd-job service TaskRabbit. The number of active Uber drivers in the
United States grew from almost zero in 2012 to more than 460,000 at the end of 2015, for
instance.23 However, research indicates that most online-platform workers earn relatively
small amounts from their gigs, suggesting that people use gig work to supplement their
income from other jobs or tide them over between regular jobs that provide stable income.24 ng
Even outside of gig work, contract and contingent work, in which people are employed
only on an as-needed basis, has become a growing part of HR strategy for many com- ORGANIZING rganizi
panies. For example, Alphabet, the parent company of Google, has more contingent O
workers than regular full-time employees. In March 2019, Alphabet had 102,000 full- SNAPSHOT
time employees, but they were outnumbered by the roughly 121,000 temporary work-
ers (temps) and contractors with whom the company worked around the world.25 The
outsourcing of jobs such as security guards, call-center operators, and other lower-skilled
work began decades ago—but in recent years, higher-level jobs have been outsourced as
well. Contingent workers, sometimes referred to as the shadow workforce, are freelancers
who are typically paid less than regular employees and receive no benefits. One estimate
is that contingent workers make up 40 to 50 percent of the workforce at most technology
companies, and another expert suggests that the shadow workforce makes up from 20 to
50 percent of any large corporation’s total workforce.26
Despite the apparent disadvantages of gig or contingent work, some Millennials and
Gen Z employees don’t have any desire to work with one company or stay with one employer
throughout their careers. They like to work remotely to achieve a better work–life bal-
ance, and they appreciate the expectations of responsibility, learning, growth, and mobility
embedded in the new social contract. Indeed, the work-from-home aspect of the new social
contract received a big boost during the COVID-19 pandemic and became a permanent
fixture of work life for many employees.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 418 PART 4 ORGANIZING
Within the new social contract, employees are no longer treated as children to be cared
for by the company. As CEO Reed Hastings of Netflix says of the relationship with SNAPSHOT
employees in his company, “We’re a team; not a family.”27 Workplace expert Lynda Grat-
ton notes that building trust is more important than creating loyalty today, when “serial
career monogamy” is the order for many young employees, who are continually evaluat-
ing whether their work is meaningful and challenging and fits with their lives.28 However,
the rapid rise of gig employment and shadow workforces raises questions about whether
employers are truly fulfilling their part of the new social contract.
12-3B LEADING-EDGE HR PRACTICES
The field of HRM is constantly changing. Some important HR-related issues today
are blind hiring, branding the company as an employer of choice, and algorithm-based hiring. Blind Hiring
When symphony orchestras began using anonymous auditions, in which a curtain shields SNAPSHOT
the auditioning musician from the evaluating committee’s view, some interesting results
occurred. With the use of curtains, the likelihood that female musicians advanced to
further tryout rounds increased by 50 percent. Today, almost 40 percent of musicians
in major U.S. orchestras are women, a dramatic increase from the days before curtains were used.29
Corporations, small businesses, and other types of organizations have picked up on the
concept of anonymous auditions with a trend called blind hiring, which focuses managers
on an applicant’s job skills and performance rather than on educational credentials, appear-
ance, or prior experience. Some companies don’t even ask for résumés, and managers in
other companies are using a variety of new tools to help them avoid potential bias.30 These
can clear résumés of information that might contain cues that bias readers, such as an
applicant’s name, gender, alma mater, or other identifying data. Some companies use voice
modulation software to make it impossible to discern the gender of an applicant during a phone interview.
With blind hiring, people are usually asked to complete a project or assignment that
relates to the type of work they will be doing if hired. Google, Dolby, and the ad agency SNAPSHOT
Wieden+Kennedy have all used a recruitment platform called GapJumpers, where job
candidates complete skills-based challenges tailored to the open position. GapJumpers
analyzed data on 1,200 blind tests it performed for clients and found that the method
increased the proportion of qualified candidates who are not White, male, and from elite
schools from about 20 percent to 60 percent.31 Other proponents of blind hiring agree that
it contributes to better, more diverse hiring.32 Levenson Group, a Dallas-based advertis-
ing firm, used blind hiring to bring in a new junior copywriter. After asking the 50 or
so applicants to create an Instagram campaign for a specific product, Levenson hired a
young woman just out of college who hadn’t studied marketing and had no experience.
Paul McEnany, Levenson’s chief product officer, says that, based on her résumé, he’s “not
even certain we would have interviewed her in the first place.”33 Algorithm-Based Hiring
Today’s managers are also applying artificial intelligence (AI) algorithms to reduce bias in
hiring decisions. With its relentless focus on facts, AI seems to overcome a typical manager’s
prejudices. However, AI can have its own biases, such as favoring job candidates who have
characteristics similar to those the software has seen before. As one example, in an effort
to overcome bias, a major company built a job-applicant screening program that ended up
automatically rejecting most women’s résumés.34 Managers and developers must take care
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 419
and consciously think about racial and gender differences to avoid building subtle uncon-
scious biases into AI algorithms.35
IBM uses an algorithm-based tool called Watson Recruitment that helps avoid bias by
prioritizing résumés for recruiters without considering personal details like age or gender. SNAPSHOT
The company’s AI platform called Watson Candidate Assistant can then deduce specific skill
sets from the roles listed on a candidate’s résumé. If someone lists work on an advertising cam-
paign over the past year, for example, Watson infers that the work involved digital marketing
skills. Watson continually learns from the three million job applications IBM receives annu-
al y. The technology knows the specifics of IBM’s jobs in 170 countries, understands the skil s
needed for each, and maps that knowledge onto the data coming in from job applicants.36
Other companies are using AI tools to assess appli-
cants’ personality characteristics that reflect soft skills
important to the company, such as curiosity, the ability
to learn, risk tolerance, and emotional intelligence. Pieter
Schalkwijk, head of Kraft Heinz’s talent acquisition for
Europe, the Middle East, and Africa, received more
than 12,000 applications for 40 to 50 job openings.
He turned to AI for help, asking applicants to play a
series of games designed to assess personality traits. To k.com
measure appetite for and approach to risk, for example, oc st ter
players were asked to inflate balloons by tapping their
keyboard space bar, collecting fake money for each hit eiss/Shut
until they chose to cash in—or until the balloon burst,
destroying the payoff. The results of this and other Jonathan W
games, measured against those of games played by 250
top-performing Kraft Heinz employees, helped Schalkwijk identify the applicants whose
traits most closely matched the type of employee the company wants.37 SNAPSHOT 4
Branding the Company as an Employer of Choice
Managers in many industries often find that the most skilled and knowledgeable employ-
ees are in short supply and great demand.38 Both small and large companies are using
employer branding to attract desirable job candidates. An employer brand is similar to a ng
product brand, except that rather than promoting a specific product, its aim is to make the
organization seem like a highly desirable place to work. Each year, Fortune and its partner ORGANIZING
Great Place to Work publish a list of the “100 Best Companies to Work For,” reflecting the rganizi O
interest that organizations have in making their companies stand out. Recently, the firms
collaborated to create a list of the “100 Best Workplaces for Millennials.” Based on surveys
of more than 4.5 million people, the following companies ranked at the top of the list:39 1. Ultimate Software 6. Edward Jones 2. Hilton 7. Power Home Remodeling 3. Salesforce 8. Red Hat 4. Workday 9. Cisco 5. Kimley-Horn 10. Hubspot
Employer-branding campaigns are like marketing campaigns to “sell” the company and
attract the best job candidates. At RMS (Risk Management Solutions), HR executive Ame-
lia Merrill used employer branding after she discovered that few people in Silicon Valley, SNAPSHOT
where the firm is based, had a clue what RMS was. To attract the kind of high-quality
technology professionals that RMS needed, Merrill’s team began selling the company in
the same way that its salespeople sold its services.40 However, many large, well-known
companies, including PepsiCo, General Electric (GE), AT&T, and Credit Suisse Group,
are also using employer branding as companies both large and small fight for top talent.41
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 420 PART 4 ORGANIZING Remember This
• The new social contract between employers and
• Some companies are using blind hiring by doing without
employees is based on the notion of employee
résumés or by redacting some information on résumés
employability and personal responsibility rather than
and asking applicants to complete assignments, focusing
lifelong employment by an organization.
on the applicant’s job skills and performance rather than
• Contract and contingent workers, sometimes referred
educational credentials or prior experience.
to as gig workers and the shadow workforce, are
• Today’s managers are applying artificial intelligence (AI)
employed only on an as-needed basis, and have
algorithms for recruiting and selecting employees.
become a growing part of workforce strategy for many
• An employer brand is similar to a product brand but companies.
promotes the organization as a great place to work, rather
• Contingent workers typically are paid less than regular
than promoting a specific product or service.
employees and receive no benefits.
• The top three companies on a recent list of “100 Best
• Alphabet, the parent company of Google, has more
Workplaces for Millennials” were Ultimate Software, Hilton,
contingent workers than regular full-time employees. and Salesforce. 12-4 Finding the Right People
Now let’s turn to the three broad goals of HRM: finding, developing, and maintaining an
effective workforce. The first step in finding the right people is human resource planning,
in which managers or HRM professionals predict the need for new employees based on the
types of vacancies that exist, as illustrated in Exhibit 12.6. The second step is to use recruit-
ing procedures to communicate with potential applicants. The third step is to select from
the applicants those persons believed to be the best potential contributors to the organiza-
tion. Finally, the new employees are welcomed into the organization.
Underlying the organization’s effort to attract employees is a matching model. With the
matching model, the organization and the individual attempt to match the needs, interests,
and values that they offer each other.42 For example, a small software developer might require
long hours from creative, technically skilled employees. In return, it can offer freedom from
bureaucracy, tolerance of idiosyncrasies, and potentially high pay. A large manufacturer can
offer employment security and stability, but it might have more rules and regulations and
require a greater ability to “get approval from the higher-ups.” The individual who would
thrive working for the software developer might feel stymied and unhappy working for a large
manufacturer. Both the company and the employee are interested in finding a good match.
12-4A HUMAN RESOURCE PLANNING
Human resource planning is the forecasting of HR needs and the projected matching of
individuals with expected vacancies. Human resource planning begins with several big- picture questions:
• What new technologies are emerging, and how will these affect the work system?
• How much is the volume of the business likely to change in the next five to ten years?
• What is the turnover rate, and how much turnover, if any, is avoidable?
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 421
E X H I B I T 12.6 Attracting an Effective Workforce HR Planning Choose Recruiting Select the Welcome Retirements Sources Candidate the New Growth Want ads Application Employee Resignations Headhunters Interview Internet Tests Company’s Needs Matching Model Employee Contributions Strategic goals Ability
Current and future competencies Education and experience Market changes Match with Creativity Employee turnover Commitment Corporate culture Expertise and knowledge Company Inducements Employee’s Needs Pay and benefits Stage of career Meaningful work Personal values Match with Advancement Promotion aspirations Training Outside interests Challenge Family concerns
The responses to these questions are used to formulate specific questions pertaining to
HR activities, such as the following:
• What types of engineers will we need, and how many? 4
• How many administrative personnel will we need to support the additional engineers?
• Can we use temporary, part-time, or virtual workers to handle some tasks?43
By anticipating future HR needs, the organization can prepare itself to meet com-
petitive challenges more effectively than organizations that react to problems only as ng they arise. ORGANIZING rganizi 12-4B RECRUITING O
Recruiting is defined as “activities or practices that define the characteristics of applicants to
whom selection procedures are ultimately applied.”44 Today, recruiting is sometimes referred
to as talent acquisition to reflect the importance of the human factor in the organization’s success.45
Although we frequently think of campus recruiting as a typical recruiting activity,
many organizations use internal recruiting, or promote-from-within policies, to fill their
high-level positions.46 Internal recruiting has two major advantages: It is less costly than
an external search, and it generates higher employee commitment, development, and
satisfaction because it offers opportunities for career advancement to employees rather
than to outsiders. Frequently, however, external recruiting—recruiting newcomers from
outside the organization—is advantageous. Applicants are obtained by a variety of
outside sources, including advertising, state employment services, online job boards
and social media, private employment agencies (headhunters), job fairs, and employee referrals.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 422 PART 4 ORGANIZING
Assessing Job Requirements
Basic building blocks of HRM include job analysis, job descriptions, and job specifications.
Job analysis is a systematic process of gathering and interpreting information about the
essential duties, tasks, and responsibilities of a job, as well as about the context within which
the job is performed.47 To perform job analysis, managers or specialists ask about work
activities and work flow, the degree of supervision given and received in the job, knowledge
and skills needed, performance standards, working conditions, and so forth. The man-
ager then prepares a written job description, which is a clear and concise summary of
the specific tasks, duties, and responsibilities, and a job specification, which outlines the
knowledge, skills, education, physical abilities, and other characteristics needed to perform the job adequately.
Job analysis helps organizations recruit the right kind of people and match them to
appropriate jobs. For example, to drive success in today’s banking industry, Singapore- SNAPSHOT
based DBS Bank identified seven significant skills it wants in employees, as illustrated
in Exhibit 12.7. DBS wants all employees to have skills in digital communications,
teamwork, risk management, use of digital and collaborative work technologies, people-
focused intention, data-driven decision making, and taking a broad digital business view.
Not every employee is expected to be an expert in every skill, but DBS wants every
employee to have the capacity to develop skills in these areas and adapt them for differ-
ent aspects of the business.48 Realistic Job Previews
Job analysis also enhances recruiting effectiveness by enabling the creation of realistic job
previews (RJPs), which give applicants all pertinent and realistic information—positive
and negative—about the job and the organization.49 RJPs contribute to greater employee
E X H I B I T 12.7 DBS Bank’s Vital Skills for a Digital World Digital Digital Communications Business View People-Focused Teamwork Intention Data-Driven Using Digital Decision Making Work Technologies Risk Management
SOURCE: Based on “Vital Skills for a Digital World,” table in Abbie Lundberg and George Westerman,
“Transformer CLO,” Harvard Business Review (January–February 2020): 84–88.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 423
satisfaction and lower turnover because they facilitate matching individuals, jobs, and
organizations. People have a better basis on which to determine their suitability to the
organization and “self-select” into or out of positions based on full information. Concept Connection Nationwide Insurance uses the
realistic job preview (RJP) to
help reduce turnover among customer
service representatives. Nationwide’s
RJP is an automated video process that
asks candidates 10 multiple-choice ques-
tions and gives them an opportunity to k.com oc st
see what working as a CSR involves. The ter
trial run allows both the applicant and
Nationwide’s staff to determine whether rafin/Shut og
the job candidate is a good fit for this ot challenging work environment. genturf A Virtual Recruiting
Managers do much of their recruiting today in the virtual world. Virtual recruiting uses
social media’s video and chat features, virtual job fairs, and recruitment software to iden-
tify desired candidates. For example, Amazon once recruited MBAs for its management
ranks by sending people to campuses of top-ranked U.S. business schools for face-to-
face meetings with students. Recently, to increase the diversity of its recruiting efforts, SNAPSHOT 4
the company scaled back on these campus visits and put a stronger emphasis on virtual
recruiting. The management consulting firm A. T. Kearney conducted 43 percent of
its college recruiting virtually in 2019 and planned to increase that share to at least 50 percent in 2020.50
Other companies that had experimented with virtual recruiting in the past temporarily ng
shifted to 100 percent virtual recruiting in the midst of the COVID-19 pandemic in 2020.
Charter Communications, for example, was hiring about 25 percent of its employees ORGANIZING rganizi
virtually in February 2020 but went to 100 percent virtual in mid-March, hiring 3,000 O
new employees with a completely virtual recruiting and selection process. Branches of the
U.S. Armed Forces also had to adapt to pandemic conditions, recruiting through social
media and digital job forums rather than via in-person recruiting stations. “The ground-
work was set before the coronavirus,” said Staff Sgt.
Barry Harris of the U.S. Army, which helped smooth
the transition. The Army had put a heavy focus on
virtual recruiting for some time before the pandemic
hit, operating 43 virtual recruiting stations, so the
organization was able to use that infrastructure
plus remote recruiters as physical stations were shut
down temporarily during the pandemic.51
Retailers that must quickly find thousands of sea- o
sonal workers for the holiday rush have found social k Phot oc
media to be an effective approach. Crate & Barrel and y St
children’s clothing chain Carter’s consider tweeting to
be a good way to reach prospective hires. At BevMo!, ylak/Alam
online applications for seasonal jobs increased 66 k L Nic
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 424 PART 4 ORGANIZING
percent after the California-based chain began posting job ads on social media alongside SNAPSHOT
cocktail recipes and product promotions.52 Companies in China have become particularly
adept at using social media for recruiting because traditional online recruiting boards in
China attract far too many unqualified candidates to make them valuable. As an alternative,
managers have turned to social media such as Weibo and WeChat to build a community of
potential candidates. China’s Lenovo Group reports finding 70 good candidates during a
three-month recruiting surge via social media, including LinkedIn and Weibo.53 Internships
Another popular use of social media is to find people to serve as either paid or unpaid
interns at the organization. An internship is an arrangement whereby an intern (usually
a high school or college student) exchanges free or low-cost labor for the opportunity to
explore whether a particular career is appealing or to gain valuable work experience in a
particular field.54 Companies are increasingly viewing internships as a valuable recruiting
tool because they provide a way to “test-drive” a potential employee, as well as allow the
intern to evaluate whether the job and the company make a good fit.
For example, Nationwide sends teams of executives to events such as the National SNAPSHOT
Black MBA Association conference and the National Society of Hispanic MBA confer-
ence, where Nationwide executives conduct interviews and often hire full-time employees
as well as interns on the spot. Nearly half of all interns at Nationwide join the company
on a full-time basis at the end of their internships.55 Interns aren’t always offered a job
with the company, but one career development expert says that internships are more closely
tied to permanent hiring today than ever before.56
Online video game and entertainment media company IGN takes an innovative
approach to recruiting via internships. The recruitment ad for IGN’s first Code Foo chal- SNAPSHOT
lenge read: “Flipping burgers to scrape together enough cash to buy Portal 2? Blow our
minds while you’re here and we’ll hire you.” Code Foo is a no-résumés-required program
designed to find exceptional software engineers, designers, and product managers. For
the first Code Foo challenge in 2011, only half of applicants had college degrees in a
technical field, and some didn’t have degrees at all. Once accepted into the program,
interns spend eight weeks working at IGN, getting paid a small amount while working
on real engineering projects. Adam Passey, for example, spent his summer coding unique
features for a hub for mobile games. IGN’s engineers were impressed, and Passey was
offered a job. IGN found the Code Foo recruiting strategy so effective that it has offered
the challenge every year since. Unfortunately, the 2020 Code Foo internships were can-
celled due to uncertainty surrounding the COVID-19 pandemic.57 Remember This
• Finding the right people starts with human resource
• Job analysis is the systematic process of gathering and
planning, which refers to the forecasting of HR needs and
interpreting information about the essential duties, tasks,
the projected matching of individuals with anticipated job and responsibilities of a job. vacancies.
• Managers prepare a job description for each open
• The matching model is an HR approach in which the
position, which is a concise summary of the specific tasks
organization and the individual attempt to match each
and responsibilities of that job.
other’s needs, interests, and values.
• A job specification outlines the knowledge, skills,
• Recruiting refers to activities or practices that define the
education, physical abilities, and other characteristics
desired characteristics of applicants for specific jobs.
needed to perform a specific job adequately.
C O N T I N U E D
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CHAPTER 12 MANAGING HUMAN TALENT 425
• Managers use realistic job previews (RJPs) in recruiting
• Internships are an increasingly popular approach to
to give applicants all pertinent and realistic information—
recruiting because they provide a way to “test-drive” a
both positive and negative—about a job and the potential employee. organization.
• An internship is an arrangement whereby an intern
• Many of today’s organizations use virtual recruiting,
exchanges his or her services for the opportunity to gain
including social media such as Twitter, Weibo, LinkedIn,
work experience and see whether a particular career is and Facebook. appealing.
• The U.S. Army operates 43 virtual recruiting stations and
• IGN’s Code Foo challenge has been used for nine years to
temporarily shifted to 100 percent virtual recruiting during
find interns, some of whom are offered full-time jobs with the COVID-19 pandemic. the company. 12-4C SELECTING
In the selection process, employers assess applicants’ characteristics in an attempt to deter-
mine the “fit” between the job and applicant characteristics. The most frequently used selec-
tion devices are the application form, interview, and employment test. In general, the greater
the skill requirements and work demands of an open position, the greater the number and
variety of selection tools the organization will use.58 Application Form
The application form is used to collect information about the applicant’s education, previ-
ous job experience, and other background characteristics. Research shows that biographical
information inventories can be valid ways to predict future job success.59 Today’s hiring
managers are finding that applicants with backgrounds in making or playing online games
often have strong online collaboration and problem-solving skills needed in the workplace. 4
“Gamers are the kind of people you give a set of instructions to and they’ll just figure it
out,” said Mike Hetisimer, manager of customer service at Truno, a maker of technol- SNAPSHOT
ogy for grocery workers. Hetisimer recently hired three employees who were avid gam-
ers. Companies in all industries are increasingly interested in extracurricular activities
such as playing video games that reflect an applicant’s ability to learn and adapt. Justin ng
Foehner, a big fan of role-playing games, got a job with General Electric using virtual- ORGANIZING
reality technology to train robots that inspect oil rigs, nuclear power plants, and other rganizi dangerous areas.60 O
One pitfall to be avoided is the inclusion of questions that are irrelevant to job success.
In line with EEO guidelines, the application form should not ask questions that will create
an adverse impact on protected groups unless the questions are clearly related to the job.61
For example, employers should not ask whether the applicant rents or owns his or her own
home because (1) an applicant’s response might adversely affect his or her chances at the job,
(2) people of color and women may be less likely to own a home, and (3) home ownership is
probably unrelated to job performance. By contrast, passing the CPA exam is relevant to job
performance in a CPA firm; thus, it is appropriate to ask whether an applicant for employ-
ment has passed the CPA exam, even if only one-half of all female or minority applicants
have done so, versus nine-tenths of White male applicants. Interview
Some type of interview is used as a selection technique in almost every job category in nearly
every organization. This is another area where the organization can get into legal trouble if
the interviewer asks questions that violate EEO guidelines. Exhibit 12.8 lists some examples
of appropriate and inappropriate interview questions.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.