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2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated as Column A ÷25) C Projected 2003 Labor Demand for 32 Hotels (Calculated as Column B x 32) Key Positions General Manager Resident Manager Food/Beverage Dir. Controller Asst. Controller Chief Engineer Director of Sales Sales Manager Convention Mgr. Catering Director Banquet Manager Personnel Director Restaurant Mgr. Executive Chef Sous Chef Exec. Housekeeper Total 25 9 23 25 14 24 25 45 14 19 19 15 49 24 24 25 379 1.00 .36 .92 1.00 .56 .96 1.00 1.80 .56 .76 .76 .60 1.96 .96 .96 1.00 32 12 29 32 18 31 32 58 18 24 24 19 63 31 31 32 486

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Page 1: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-1

Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels

ANumber

ofEmployees

BRatio of Employees/Hotels (Calculated as Column A ÷25)

CProjected 2003 Labor Demand for 32 Hotels

(Calculated as Column B x 32)Key PositionsGeneral ManagerResident ManagerFood/Beverage Dir.ControllerAsst. ControllerChief EngineerDirector of SalesSales ManagerConvention Mgr.Catering DirectorBanquet ManagerPersonnel DirectorRestaurant Mgr.Executive ChefSous ChefExec. HousekeeperTotal

259

2325142425451419191549242425

379

1.00.36.92

1.00.56.96

1.001.80.56.76.76.60

1.96.96.96

1.00

32122932183132581824241963313132

486

Page 2: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-2

Examples of Predicting Labor Supply and Required New Hires for a Hotel Chain

A% Quit

B# of

PresentEmp.

CProj.

Turnoverby 2003

Key PositionsGeneral ManagerResident ManagerFood/Beverage Dir.ControllerAsst. ControllerChief EngineerDirector of SalesSales ManagerConvention Mgr.Catering DirectorBanquet ManagerPersonnel DirectorRestaurant Mgr.Executive ChefSous ChefExec. HousekeeperTotal

38774785668134689074604389709263

259

2325142425451419191549242425

379

107

1121

916

930131412

644172216

257

DEmp.

Left by2003

152

12458

1615

15795729

122

32122932183132581824241963313132

486

17101728132316431719171058242923

364

EProj. Labor

Demandin 2003

FProj.

New Hires in 2003

Supply Analysis Supply-Demand Comp.

Page 3: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-3

Recruitment

Recruitment is the process of generating a pool of qualified candidates for a particular job. The firm must announce the job’s availability to the market and attract qualified candidates to apply. The firm may seek applicants from inside the organization, outside the organization, or both.

Page 4: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-4

Recruitment Sources Internal Sources

Faster, cheaper, more certainty External Sources

New ideas and approaches Direct applicants and referrals

Self-selection, low cost Newspaper advertising Public employment agencies

Blue-collar jobs Private employment agencies

White-collar jobs Colleges and Universities Online recruiting

Internet has transformed how U.S. Ers find and hire Ees – Internet produced about half of all new hires in 2005 (includes Er’s web site, general job boards, etc.) (Source: HRNews Online, 2/21/06)

Page 5: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-5

Attributes Impacting Recruiter Evaluations of MBA Programs

Attribute % Very ImportantCommunication and interpersonal skills 89%Ability to work well within a team 87Personal ethics and integrity 86Analytical and problem-solving skills 84Work ethic 83Fit with the corporate culture 75Success w/ past hires 74Leadership potential 73

– Source: Wall Street Journal, 9/20/06

Page 6: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-6

Attributes Impacting Recruiter Evaluations of MBA Programs

“We need a combination of strong analytical and interpersonal skills, plus an ability to cope with ambiguity and remain composed in uncomfortable, stressful situations. A key question for us is can the candidate be comfortable working and communicating with a range of people at the company, from top executives down to assembly-line workers?”

– Recruiter from Electronic Data Systems

“Budding MBAs tend to be overly confident. [At USC] our biggest single problem is convincing them they don’t have the skills needed to communicate well in a corporate environment.”

– Source: Wall Street Journal, 9/17/03

Page 7: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-7

Selection

Selection is the process of making a “hire” or “no hire” decision regarding each applicant for a job. The process typically involves determining the characteristics required for effective job performance and then measuring applicants on those characteristics. The characteristics required for effective job performance are typically based on a job analysis.

Page 8: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-8

Selection Process

Toyota staffing process for new Tundra truck assembly plant near San Antonio Plant initially employs ~1,800 production Ees

(Princeton plant staffed up to 4,300) Over 100,000 applications expected

Not unusual for high paying world class manufacturing Co to have 50+ applicants for every position

• Harley-Davidson’s new Kansas City plant hired 200 from 9,000 apps• As of January 2002, TMMI had received 62,000 applications and hired

2,600 Ratio may be even greater for some staff positions

Visteon: Hired 7 percent of applicants, 2/3 failed test adding fractions

Page 9: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-9

“Inside the Head of an Applicant”

89 of Fortune 100 use Myers-Briggs Personality Type Indicator in hiring and promoting Experts concede test seems to capture

valid aspects of personality, but say it’s too ‘blunt’

“Most people are blends”

Page 10: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-10

“Inside the Head of an Applicant”

Minnesota Multiphasic Personality Inventory (MMPI) widely used for substance abuse, other symptoms of social maladjustment Psychologists say test has value, but tends to flag otherwise

normal test takers as pathological (false positives) 60% of U.S. police depts use it, as do industries ranging from

banking to retail• Note Target case (combination of MMPI and California Personality

Inventory) In June 2005, 7th Circuit Court of Appeals ruled in class-action

suit that Rent-A-Center violated ADA by requiring applicants to take MMPI – “likely had the effect of excluding employees with (mental) disorders from promotions”

• In 1996, test measuring trustworthiness withstood claim against Borg-Warner Protective Services, as judge ruled test was not medical examination under ADA

Page 11: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-11

“Inside the Head of an Applicant”

More accurate generation of personality tests has now hit market, derived from empirical studies about how types of people behave in certain situations Unlike MMPI, designed to measure normal personalities

Scientists digging even deeper, focusing on genetic and neural predictors of personality Brain scans have shown people differ profoundly in their

brain ‘wiring’ EEOC guidelines indicate er can use construct

validity studies as evidence that specific test measures personality traits identified as important to performance of specific job Hiring consultants also recommend concurrent validation

– Source: Newsweek, 2/21/05; Workforce Management, 9/05

Page 12: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-12

“Why I cut 48 resumes from a stack of 62” OD consultant did first pass for client Took two hours (< 2 minutes per

resume) 14 made cut (< 25%)

8 had no chance Other 40 could have made cut, but

applicants sabotaged their chances

Page 13: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-13

“Why I cut 48 resumes from a stack of 62” Why the might be’s became no’s

Objective didn’t fit position Be sure objective aligns with available job May be better to leave off resume, address in cover letter

Overly favorable representation of themselves “good communication skills” good, “extraordinarily skilled

communicator” may be overboard Resume lacked sufficient information as to kind of

work done previously Job titles wo/responsibilities problematic

Typographical errors (McGuire’s “certified pubic accountant” candidate)

– Source: Roanoke Times & World News, 7/18/02

Page 14: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-14

The Nine Don’ts of Interviewing Don’t ask applicants if they have children, plan to have children, or

what child-care arrangements they have made. Don’t ask an applicant’s age. Don’t ask whether or not the candidate has a physical or mental

disability that would interfere with doing the job. Don’t ask for such identifying characteristics as height or weight on

an application. Don’t ask a female candidate for her maiden name. Don’t ask applicants about their citizenship. Don’t ask applicants about their arrest records. Don’t ask if a candidate smokes. Don’t ask a job candidate if he or she has AIDS or is HIV-positive.

Page 15: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-15

Some Issues with The Nine Don’ts Misleading to some extent and in some

instances wrong For example, even criminal convictions can

create adverse impact (see subsequent slide) Can lawfully refuse to employ smokers in

some states (not IL, IN, KY) Partridge presentation in ASBE 401 will

elucidate

Page 16: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-16

Employment Inquiries and Privacy Text statement that “privacy and discrimination laws

prohibit inquiries into an applicant’s personal, non-work-related activities” (p. 174) is over-broad… While EEOC guidelines encourage inquiries to be job-

related… No Constitutional right to privacy, except as created by

US SCt re: some governmental action (CA contrary) E.g., 1965 case held that CT law prohibiting sale of

contraceptives was unconstitutional invasion of privacy (of married persons); 2003 case held that TX law prohibiting sex between persons of same sex was unconstitutional invasion of privacy

Privacy Act regulates some governmental action Discrimination laws prohibit discrimination on basis of

specified characteristics There is the common law of torts (e.g., defamation) Bottom line: questions that are invasive are not

necessarily unlawful (but may still result in litigation)

Page 17: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-17

“For Some, Online Persona Undermines Resume” When small Chicago consulting Co was looking to hire summer

intern, Co president went online to check on promising candidate who had just graduated from U of Illinois At Facebook, found web page that described candidate’s interests

as “smokin’ blunts,” shooting people, and obsessive sex, all described in vivid slang

Candidate was done “What kind of judgment does this person have?”

Orgs looking for ‘red flags’– Source: New York Times, 6/11/06

USI mngt major, Jr., 3.1 GPA Facebook picture shows student holding a beer with two beer cans

balanced on her head Interests: “going to bars, drinking beer, drinking whiskey,

drinking any alcohol, partying with my friends, going to the haute, beer pong, beer bonging, edward 40 hands, drinking games with cards or any we make up randomly, so pretty much anything that involves drinking”

Page 18: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-18

“For Some, Online Persona Undermines Resume” According to survey of 3,100 Ers by CareerBuilder.com, 22% of hiring

Ers say they use Web sites such as Facebook and MySpace to research job candidates

Double the percentage in 2006 Of the respondents who used a social networking site to check

candidates, 34% said they found information that caused them to remove candidate from consideration

Candidate posted information about drinking or using drugs, provocative or inappropriate pictures or information, poor communication skills, bad-mouthed former Er or co-worker, used discriminatory remarks, screen name was unprofessional, was linked to criminal behavior, revealed confidential information about previous Ers

24% of hiring managers said they found content that gave candidate an edge

Great communication skills, person was good fit for Co’s culture, personal site illustrated professional image, showed wide range of interests, personal profile was creative

– Source: WorldatWork, 9/12/08

Page 19: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-19

“As Background Checks Proliferate, Ex-Cons Face a Lock on Jobs” More businesses using criminal-background checks

to guard against negligent-hiring lawsuits, theft of company assets, even terrorism About 80% of big Ers in U.S. now do such checks (up from

56% in 1996) Some 630,000 people get out of state and federal prisons

each year w/ criminal records Almost 30% of adult Americans had state criminal arrest record

in 2003 Ethical and legal implications

Minorities in particular could experience adverse impact Black males incarcerated at five times rate of white males,

Hispanics two times Blacks w/ criminal records pay bigger penalty in job market (see

research cited in Understanding Equal Opportunity and the Legal Environment)

– Source: Wall Street Journal, 8/26/04; MSNBC.com, 8/14/05

Page 20: © 2001 by Prentice Hall 5-1 Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels A Number of Employees B Ratio of Employees/ Hotels (Calculated

© 2001 by Prentice Hall 5-20

Reference Checking

36 states (including IN) have laws that grant ers some form of civil immunity when they disclose information about current or past ee in response to request for reference But, suggested that many state laws contain

loopholes that plaintiff lawyers can attack when pursuing defamation lawsuit

Although truth is a defense, ers must still be careful about what information is provided and how

There is both a duty to be accurate and a duty not to misrepresent information

– Source: HR News, 6/24/05