What is the single most important What is the single most important managerial responsibility?managerial responsibility?

StaffingStaffing the organization with the right the organization with the right people.people.

The staffing process: recruitment, The staffing process: recruitment, selection, hiringselection, hiring

Quotes from the book authorsQuotes from the book authors

““Selecting those who will be successful in Selecting those who will be successful in an organization remains one of the greatest an organization remains one of the greatest challenges to management today.”challenges to management today.”

““The costs to a company which does a poor The costs to a company which does a poor job of selecting employees are staggering.”job of selecting employees are staggering.”

What critical staffing mistakes do What critical staffing mistakes do managers make?managers make?

Hiring someone based on what “feels right” Hiring someone based on what “feels right” rather than using objective criteriarather than using objective criteria

Starting to recruit when someone leaves Starting to recruit when someone leaves rather than establishing an ongoing rather than establishing an ongoing recruiting programrecruiting program

How does good selection How does good selection promote cost savings?promote cost savings?

It reduces both the It reduces both the directdirect and and indirectindirect costs costs incurred when a poor selection is made.incurred when a poor selection is made.

Direct costs – recruiting, training, selling Direct costs – recruiting, training, selling expenses, supervision costsexpenses, supervision costs

Indirect cost – Lost sales (sales someone Indirect cost – Lost sales (sales someone better could have made)better could have made)

How does good selection ease How does good selection ease other managerial tasks?other managerial tasks?

It makes training easier.It makes training easier. Less motivation is required.Less motivation is required. Supervision is less difficult.Supervision is less difficult. It leads to less turnover and improved It leads to less turnover and improved

performance.performance.

Nondiscrimination vs. Nondiscrimination vs. Affirmative ActionAffirmative Action

Nondiscrimination—The hiring process is Nondiscrimination—The hiring process is conducted so that it eliminates all conducted so that it eliminates all discriminatory practices and conditions, discriminatory practices and conditions, whether they are intentional or whether they are intentional or unintentional.unintentional.

Affirmative Action—The hiring process Affirmative Action—The hiring process includes additional efforts to recruit, includes additional efforts to recruit, employ, or promote persons formerly employ, or promote persons formerly excluded or in the minority.excluded or in the minority.

Is is Is is illegalillegal to discriminate on the to discriminate on the basis of:basis of:

Race, color, religion, sex, nationalityRace, color, religion, sex, nationality Age, physical or mental disabilityAge, physical or mental disability

Steps in the Staffing ProcessSteps in the Staffing Process

1. Decide who is to be responsible for 1. Decide who is to be responsible for recruiting and selection.recruiting and selection.

2. Determine how many people need to be 2. Determine how many people need to be hired.hired.

3. Conduct a thorough job analysis.3. Conduct a thorough job analysis. 4. Prepare the job description.4. Prepare the job description. 5. Determine the hiring qualifications.5. Determine the hiring qualifications.

Staffing Process (continued):Staffing Process (continued):

6. Identify sources for recruiting.6. Identify sources for recruiting. 7. Select the sources to be used on this 7. Select the sources to be used on this

occasion.occasion. 8. Contact the recruits.8. Contact the recruits.

Who does recruiting and hiring?Who does recruiting and hiring?

In small companies:In small companies: The company president; the top sales The company president; the top sales

managermanager In large firms:In large firms: Lower level sales managers with help from Lower level sales managers with help from

the HR department in recruiting and the HR department in recruiting and screeningscreening

Hiring ToolsHiring Tools

Job AnalysisJob Analysis StudyingStudying a job carefully to clearly identify all the a job carefully to clearly identify all the

tasks involved; requires extensive observation and tasks involved; requires extensive observation and interviewinginterviewing

Job DescriptionJob Description A A written detailed explanationwritten detailed explanation of the job and what of the job and what

is to be done on the jobis to be done on the job QualificationsQualifications A listing of the personal characteristics needed to A listing of the personal characteristics needed to

successfully perform the jobsuccessfully perform the job

Key Parts of the Job Description:Key Parts of the Job Description:

Job TitleJob Title Reporting RelationshipReporting Relationship Types of products/services soldTypes of products/services sold Types of Customers called onTypes of Customers called on Job Duties and ResponsibilitiesJob Duties and Responsibilities Demands of the JobDemands of the Job Hiring QualificationsHiring Qualifications

Why is it difficult to set job Why is it difficult to set job qualifications?qualifications?

There is no general profile of characteristics There is no general profile of characteristics that leads to sales success.that leads to sales success.

The ability to perform is job specific.The ability to perform is job specific. Age, sex, and personality traits are poor Age, sex, and personality traits are poor

predictors of performance.predictors of performance. Education and experience do little to Education and experience do little to

explain performance.explain performance.

Generally Desirable TraitsGenerally Desirable Traits

Knowledge, technology skillsKnowledge, technology skills Punctuality, organization, and follow-Punctuality, organization, and follow-

throughthrough Energy, empathy, and honestyEnergy, empathy, and honesty Ability to work on a teamAbility to work on a team

How to Determine Job How to Determine Job Qualifications:Qualifications:

Deduce them from carefully studying the Deduce them from carefully studying the job description.job description.

Systematically analyze a sampling of the Systematically analyze a sampling of the job histories of present and past employeesjob histories of present and past employees

Proactive RecruitingProactive Recruiting

The best time to recruit is before you have The best time to recruit is before you have an opening.an opening.

Recruiting should be done continuously, Recruiting should be done continuously, even when no immediate need exists.even when no immediate need exists.

Recruiting Sources:Recruiting Sources:

Inside ReferralsInside Referrals Outside ReferralsOutside Referrals Educational InstitutionsEducational Institutions AdvertisementsAdvertisements Employment AgenciesEmployment Agencies The InternetThe Internet Computerized DatabasesComputerized Databases

Recruits from within:Recruits from within:

Are less costly to recruitAre less costly to recruit Are more familiar with the company Are more familiar with the company

products and policiesproducts and policies Are less costly to trainAre less costly to train Have lower turnoverHave lower turnover Yield more long-run profit for the companyYield more long-run profit for the company

Should we advertise our job Should we advertise our job openings?openings?

Newspapers and trade journals are most Newspapers and trade journals are most widely used; journals are more selective widely used; journals are more selective than newspapers.than newspapers.

Ads produce many applicants but their Ads produce many applicants but their overall quality is lower.overall quality is lower.

Job details and hiring qualifications can Job details and hiring qualifications can help readers to “self-screen.”help readers to “self-screen.”

Diversity in Hiring:Diversity in Hiring:

The % of women and minorities in outside The % of women and minorities in outside sales is well below average.sales is well below average.

The outside sales force usually has the The outside sales force usually has the lowest % of minorities of any dept. in the lowest % of minorities of any dept. in the company.company.

Women are grossly underrepresented in Women are grossly underrepresented in outside sales jobs and in outside sales outside sales jobs and in outside sales management.management.

Why don’t African-Americans Why don’t African-Americans get outside sales jobs?get outside sales jobs?

African-Americans don’t apply for these African-Americans don’t apply for these jobs at the same rates as whites.jobs at the same rates as whites.

There aren’t enough African-American There aren’t enough African-American recruiting sources.recruiting sources.

Understanding “Protected Understanding “Protected Classes”:Classes”:

The federal govt. has ruled that minorities, The federal govt. has ruled that minorities, veterans, and handicapped persons are “protected” veterans, and handicapped persons are “protected” in hiring.in hiring.

Rejected applicants may file lawsuits.Rejected applicants may file lawsuits. A low proportion of these groups in a company A low proportion of these groups in a company

may be enough to prove discrimination.may be enough to prove discrimination. Discrimination may result from the sources used Discrimination may result from the sources used

to recruit (e.g. hiring only from within).to recruit (e.g. hiring only from within).

Legal Considerations:Legal Considerations:

The EEOC Act (1972) says firms with 25 or The EEOC Act (1972) says firms with 25 or more employees are required to comply more employees are required to comply with the Civil Rights Act.with the Civil Rights Act.

The EEOC investigates more than 30,000 The EEOC investigates more than 30,000 cases of racial discrimination per year.cases of racial discrimination per year.

The EEOC can force companies to pay stiff The EEOC can force companies to pay stiff fines and implement diversity programs.fines and implement diversity programs.