Staffing & Human Resource Planning

HRLB314 – Strategies for Selection Decision Making

Dr. Mohd Nur Ruzainy bin Alwi
Learning Outcomes
1. Discuss the characteristics of Selection
Decision
2. Discuss Employment Contract
3. Propose strategic approach for
employment
 Staffing Organizations Model
Organization
Mission
Goals and Objectives

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Support Activities Core Staffing Activities
Legal compliance Recruitment: External, internal
Selection:
Planning Measurement, external, internal
Employment:
Job analysis Decision making, final match
Staffing System and Retention Management
 Characteristics of Selection
Decision
• The objective of staffing is to get the right
number of people with the right KSAOs at the
right time to support the organization’s
objectives.

• There are many methods that were discussed

in the earlier topics with regards on how to
achieve this objective.

• The key to implement a successful staffing

drive is through a sound understanding of
which method is best for which situation.
Characteristics of Selection Decision
• A smart manager will always look into the
need of different situation in order to suggest
the right set of selection methods to be used.

• One key to get this done is through

understanding of factors that affect the
selection process itself.

• Here are some factors that need to be

considered:
– Type of position
– HR budget
– Time needed to fill up vacancy
 Employment Contracts
• The establishment and enforcement of
employment contract is very complex. However
complex it is, it is very crucial to understand the
elements that compose a legally enforceable
contract and to be able to identify the people
involved in the contract developing and
implementation process.

There are three basic elements required for a

contract to be legally binding and enforceable:
 Offer – Made by the employer
 Acceptance – Acceptance by employee must
be based on agreeing to the terms in the
contract offered by the employer
 Consideration – entails the exchange of
something of value. Labor versus Salary
 Form of contract
• Written contract

• Oral contract

Disclaimers
Oral or written statement explicitly limiting an
employee right and reserving that right for
employer

Contingencies
Extending a job offer contingent on certain
conditions being fulfilled by offer receiver
 Recommendations in Developing Disclaimer

• They should be clearly stated and conspicuously

placed in appropriate documents
• The employee should acknowledge receipt and
review of the document and the disclaimer
• The disclaimer should state that it may be
modified only in writing and by whom
• The terms and conditions of employment,
including the disclaimer, as well as limits on their
enforceability, should be reviewed with offer
receivers and employees.
 Employment Contracts
• Unfulfilled promises
 Organizational HR issues
• Do not make promises unwilling to keep
• Be sure promises made are kept

 Potential legal claims

• Breach of contract
• Promissory estoppel
• Fraud
Strategic Approach to Job Offers
 Job Offer Content
• Starting date • Special hiring inducements
• Duration of contract – Hiring bonuses
• Compensation – Relocation assistance
 Starting pay – Hot skill premiums
• Flat vs. differential rates – Severance packages
• Exh. 12.2: Example of Starting • Restrictions on employees
Pay Policies • Other terms and conditions
 Variable pay • Acceptance terms
• Short term
• Long term
 Benefits - Ex. 12.3
• Hours
 Idiosyncratic Deals
Category Examples
Tasks and work  An engineer in a technology firm with an interest and
responsibilities that are background in marketing will participate in marketing
specially tailored to the meetings
employee's unique KSAOs
 A salesperson who is especially familiar with a certain
product line will be given paid time to share expertise
with other workers

 A customer service provider interested in management

will be paid to attend skill development workshops
 Idiosyncratic Deals
Category Examples
Flexible schedules to  An employee will be allowed to come in later in the
accommodate individual day and leave later to accommodate childcare needs
employee needs
 An employee whose spouse works a non-standard
workweek will be given a Tuesday to Saturday
schedule

 A non-exempt employee will have variable hours per

week
 Idiosyncratic Deals
Category Examples
The ability to work outside  A virtual private network or cloud-based servers will be
of the main office used to allow employees to access work data remotely
 
 Provide mobile devices like tablet computers or
smartphones and pay for connectivity fees for an
employee who travels frequently with her family
 Idiosyncratic Deals
Category Examples
Financial incentives that  Compensate an especially productive research
are particular to the developer based on patent applications
employee and match his or
her unique contribution to  Designate an employee with well-developed social
the organization networks a “rainmaker” and pay for each new client he
brings in to other salespeople

 Pay a bonus to a manager with strong developmental

skills for each person she successfully mentors
 Job Offer Process
• Formulation of job offer

• Presentation of job offer

• Job offer acceptance and

rejection

• Reneging
 Formulation of Job Offer
 Knowledge of competitors
– Labor demand issues
• Who are the competitors?
• What terms and conditions are they offering
for
the job for which the hiring organization is
staffing?
– Labor supply issues
• Offers need to attract number of staff
required
• Offers need to consider KSAOs of each offer
receiver and the worth of the KSAOs
 Formulation of Job Offer (continued)
 Applicant truthfulness
– Minimal evidence exists on degree of applicant
truthfulness
– To combat deceit, organizations are pursuing
verification of all applicant information

 Likely reactions of offer receivers

– Approaches to assess reactions to offers
• Gather information about various preferences from
offer receiver during recruitment/selection process
• Conduct research on why offer receivers accept or
decline job offers
 Formulation of Job Offer (continued)
 Policies on negotiations and initial
offers
– Job offers occur for both external /
internal staffing
– Consider costs of job offer being
rejected by candidate
– Candidates may be receiving
counteroffers from current employer
– Currently employed candidates incur
costs for leaving and expect a “make
whole” offer
 Decision Makers
• Role of human resource professionals
– Determine process used to design and manage
selection system
– Contribute to outcomes based on initial
assessment methods
– Provide input regarding who receives job offers

• Role of managers
– Determine who is selected for employment
– Provide input regarding process issues

• Role of employees
– Provide input regarding selection procedures
and who gets hired, especially in team
approaches
 Formulation of Job Offer (continued)

 Strategies for presenting initial offer

– Lowball
• offering the lower bounds of terms and
conditions to the receiver

– Market matching
• an offer that is “on the market,” neither too
high nor too low

– Best shot
• gives a high offer, one right at the upper
bounds of feasible terms and conditions
 Presentation of Job Offer
 Mechanical approach
– Relies on one-way-communication
– Highly efficient and inexpensive
– All applicants treated the same for legal
purposes

 Sales approach
– Active interaction with applicant
– Allows organization to respond to
concerns
– Much higher chance of offer acceptance
 Job Offer Process:
Acceptance, Rejection, Reneging

 Acceptance – must come in a

written form
 Rejection
– By organization
– By offer receiver

 Reneging
 Reneging
• To lessen the occurrence of Reneging
– Extend offers only for positions known to exist and be vacant
– Require top management approval of all reneging
– Conduct thorough assessments of finalists prior to job offer
– Honor outstanding offers but make no new ones
– Discourage offer receiver from accepting offer
– Defer starting date and provide partial pay in interim
– Keep offer open but renegotiate or reduce salary and other
economic items
– Stagger new hire starting dates to smooth out additions to
payroll
 Reneging
• To handle Reneging
- Communicate honestly and quickly with offer
receiver
- Provide consolation or apology package (e.g. hiring
bonus, three months’ salary)
- Pay for any disruption costs (e.g. relocation)
- Hire as consultant (independent contractor),
convert to employee later
- Guarantee priority over other applicants when
future vacancies occur