Seattle University Business Management & Diversity Discussion

ارا
12
304
Part 4 Organizing
searching for ways to
the company—if they
environment of the e
Human capital refer
and capabilities of er
to
organiza
around the world. E
and acces
Discover Your
Management Approach
Will You Get the Right People on the Bus?
Instructions: As a new manager, how much emphasis will you give to getting the right people
handling the people part of your management job. Please answer whether each item is Mostly True
your team? Find out by answering the following questions based on your expectations and beliefs for
tributing
on
resources,
9-1a The
The Str:
Mostly True
Mostly False
or Mostly False for you.
out for the interests of
11
HRM has shed it
strategy. The bes
an ongoing, intes
that effective HI
tion have a posit
financial results
Tesla Motos
а
team.
1. I’ll readily fire someone who isn’t working
the organization.
2. Selecting the right people for a winning business team is as
important to me as it is to a winning sports
3. I expect to spend 40 percent to 60 percent of my management
time on issues such as recruiting, developing, and placing people.
To complete and score the entire assessment, visit MindTap.
. and Others Don’t (New York: Harper Business, 2001).
-Based on ideas presented in Jim Collins, Good to Great:Why Some Companies Make the Leap
Exhibit 9.1
SOURCE: “Leadi
Most of a Critica
(accessed Augu
area,
When was the last time you called in sick to work? What was your reason? According to
when they actually felt fine increased to 38 percent in 2015, up 10 percentage points from
CareerBuilder’s annual survey, the percentage of employees admitting that they called in sick
the previous year. The excuse given to supervisors most often was a doctor’s appointment, but
CareerBuilder also found some much more interesting reasons people gave for why they couldn’t
come to work. One employee said she was stuck under the bed, for example. Another told her
manager that she had to go to the beach because her doctor said she needed more Vitamin D.
How about the employee who said he broke his arm while trying to catch a falling sandwich, or
the one who poked herself in the eye while combing her hair? Perhaps they were a bit luckier
than the guy who claimed his grandmother had poisoned him with ham.
As these humorous examples show, there can be some interesting challenges in the area of
managing human resources. All managers, no matter their hierarchical level or functional
deal with human resource issues, such as finding and training the right people,
evaluating perfor-
mance 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 orga-
nization to ensure the effective and efficient use of human talent to accomplish organizational
goals.? This 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. Hot-button issues such as executive
compensation, changing government regulations, and the frequency of mergers and acquisitions
make HRM a critical skill for both business and nonprofit organizations.
Su
Sio
ir
С
C
9-1 The Strategic Role of HRM Is to Drive
Organizational Performance
*****
Managers around the world often cite human capital as the top factor in maintaining competi-
tive success, which reflects the critical role of managing talent. Talent management has emerged
as a central topic of concern not only for human resource managers but for all managers
searching for ways to
Chapter 9 Managing Human Talent and Diversity
305
keep their organizations thriving in the fast-changing, competitive
organizational
tributing
to
resources,
success based on a survey of more than 1,700 top executives from
e on
efs for
True
environment of the early twenty-first century. Smart managers know that employees are
the company—if they don’t perform well, the company doesn’t stand a chance of succeeding.
and capabilities of employees. Exhibit 9.1 shows the top three factors cited by CEOs as con-
Human capital refers to the economic value of the combined knowledge, experience, skills,
and access to raw materials.6
around the world. Human capital ranked far higher than assets such as technology, physical
The Strategic Approach
HRM has shed its old “personnel” image and gained recognition as a vital player in corporate
2 ongoing, integrated plan for furthering the organization’s performance. Research has found
t effective HRM and the alignment of HR strategies with the organization’s strategic direc-
tion have a positive impact on performance, including higher employee productivity and stronger
9-1a
alse
7
an
that
financial results.
Tesla Motors has been on a
hiring spree to help the car company meet its strategic goals.
Exhibit 9.1 Top Three Factors for Maintaining Competitive Success
01).
Percentage of CEOs reporting these factors as important for
competitive success:
Human Capital
71%
ng to
sick
Customer Relationships
66%
Product and Service
Innovation
52%
from
but
ldn’t
her
>
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
D.
(accessed August 27, 2012).
–
or
Kier
of
ea,
r-
Sunny
Side Up
Tesla Motors Inc.
1
In late 2015, Tesla Motors CEO Elon Musk put out an urgent
call on Twitter for “hard-core software engineers” to wor
on Tesla’s autonomous car project, known as Autopilot.
“This is a super-high priority,” Musk tweeted.
The need is intense as Tesla’s strategy is based on
large-scale growth through the end of the decade. Tesla is
competing for engineering talent with a growing number
of companies working to develop electric and self-driving
vehicles. Start-ups such as China’s Faraday Future Inc.,
Karma Automotive Inc., and Atieva Inc. have been luring
employees away from Tesla for their car projects. Traditional
automakers such as Ford and Toyota are fighting for talent
in Silicon Valley to help them create the software and other
components of electric and autonomous vehicles and fend
off the threat from Apple and Alphabet’s Google as those
companies work to create a self-driving car.
To meet its ambitious growth goals, Tesla needs to
add people faster than smaller start-ups do. The company
expanded from only 899 employees at the end of 2010 to
more 14,000 by the end of 2015, and Musk has plans to
add 4,500 more in California alone over the next four years.
He personally interviews engineers for Autopilot, reflecting
the importance of each new hire for meeting the com-
pany’s long-term goals.
All of
skills and
306
Part 4 Organizing
This c
pilots and
trated in
inside a
the entir
the need
environ
set of skills is
one of the most urgent concerns for today’s organizations.
11
involved
not
Tesla Motors and other automakers aren’t the only firms fighting for talent. Airlines, for
example, are facing a severe pilot shortage as the retirement of thousands of airline pilots collides
with an increase in air travel and new FAA rules requiring expanded training for new
retirements in 2012. Hiring and keeping high-quality employees with the right
analysts predict more than 2,600 pilot retirements at major airlines in 2020 compared with 560
longer rest times for pilots of passenger airlines. The problem isn’t going away anytime soon, as
to HRM recognizes three key elements. First, all managers are i
The strategic approach
mented effectively without the right people to put it into action. Employees,
in managing human resources. Second, employees are viewed as assets. No strategy can be imple-
the organization’s strategy and goals with the correct approach to
Hiring the right people to become more competitive on a global basis
Hiring the right people for improving quality, innovation, and customer service
Knowing the right people to retain after mergers, acquisitions, or
Hiring the right people to apply new information technology (IT) for mobile business
Hiring the right people is important for smaller businesses as well, even
described in the “Sunny Side Up” box.
buildings and
the org
The
the rig
and m
a
to managing human capital.12
“If each of us hires
people who are
smaller than we are,
we shall become a
company of dwarfs.
But if each of us hires
people who are bigger
than we are, we shall
become a company of
giants.
-DAVID OGILVY
(1911-1999), FOUNDER
OF THE OGILVY & MATHER
ADVERTISING AGENCY
9-1b
downsizing
.
17
In m
mat
mad
as c
.
Yoga studios, as
Upper West Side Yoga and Wellness (UWS Yoga)
for
tra
dc
th
co
Sunny
Side Up
S
a
“Running a Yoga studio is a business not unlike managing
a dance or even a martial-arts studio,” said Stephan Kolbert,
who owns UWS Yoga with his wife and business partner,
Ingrid Marcroft. Their goal is to offer high-quality classes
to students and support their overall health and wellness.
Along with their teaching responsibilities, they also have
to manage the studio well to make ends meet. Currently,
they have 21 teachers, though fewer than 70 percent are
active in any single pay period, as well as their four part-
time front desk staff.
Students choose Yoga classes largely based on teach-
ers, according to a multiyear industry study, so the reputa-
tion of the teacher is a magnet to healthy class sizes. When
choosing a new teacher, Kolbert and Marcroft look for a
high-quality teacher who is sensitive to students’ vary-
ing needs, someone who gets along with people in the
studio, and someone who is reliable. Because UWS Yoga
is considered a small-to-medium size studio, the owners
rely on subcontractor teachers to do about two-thirds of
the teaching, while Marcroft and Kolbert do the rest. They
strictly adhere to Department of Labor Standards regard-
ing the way they work with independent contractor teach-
ers and their desk staff. According to Kolbert, some studios
blur this boundary of labor and have teachers greet stu-
dents, take cash, or clean up, but UWS Yoga asks them only
to teach because the desk staff (or Marcroft and Kolbert)
do those other tasks.
a healthy stream of new people to choose from when
a teacher position opens. UWS Yoga does not have a
teacher-training program, so Kolbert says the studio
finds teachers through word of mouth, and if he and
Marcroft hear of a really good teacher, they’ll attend
that person’s class. “We used to get to know someone
personally and then have that person teach for us, but
we’ve learned we need to see someone sample teach
a regular class first.”Some studios hold an “open call” to
look for new teachers, not unlike the audition in
A Chorus Line, but Kolbert said he and Marcroft had
found that too competitive and dispiriting and prefer a
more personal approach to recruitment. They also often
ask regular students to provide them with feedback on
substitute teachers to see if they are a good fit for the
studio.
12
As for retaining good teachers and desk staff, both
Marcroft and Kolbert practice bringing the principles of
Yoga into their business. Yoga is about balancing physical
energy and mental clarity. “We treat our teachers and staff
with a lot of respect, compassion, and professionalism, and
don’t look to micromanage them. We hear other studio
owners complain about teachers or staffing issues but,
overall, we’ve had excellent experiences with the human
resources side of the business. Teachers and staff have also
told us that they love working with us because we’walk
the talk.”
Most Yoga studios do teacher-training programs as
a way of increasing their income, and this gives them
SOURCE: Stephan Kolbert, personal communication, March 2018.
Chapter 9 Managing Human Talent and Diversity
and employees.
skills
g for new
LOURES
talent. Airlines, for
airline pilots collides
pilots and
ay anytime soon, as
compared with 560
right set of skills is
inside
the entire organization, such as
globalization, changing technology,
environment,
Tagers are involved
egy can be imple-
not buildings and
ocess, integrating
human capital.12
Kevork Djansezian/Getty Images
owing:
9-16
service
cing
All of these strategic decisions determine a company’s need for
307
This chapter examines the three primary goals of HRM, as illus-
trated in Exhibit 9.2. HRM activities and goals do not take place
e a vacuum, but within the context of issues and factors affecting
the need for rapid innovation, quick shifts in markets and the external
societal trends, government regulations, and changes in
the organization’s culture, structure, strategy, and goals.
The three broad HRM activities outlined in Exhibit 9.2 are to find
and maintain the workforce over the long term. 13
the right people, manage talent so that people achieve their potential,
Performance
Building Human Capital to Drive
Concept Connection
Lowe’s 265,000 employees help customers with remod-
eling, building, and gardening ideas at its 1,840 stores.
In many companies, especially those that rely more on employee infor-
They cut lumber, blinds, pipe, and chains; thread pipes,
mation, creativity, knowledge, and service rather than on production
assemble items; provide computer project design and
landscape garden design; match paint colors; teach
s described earlier. To build human capital, HRM develops strategies
how-to clinics; and offer many other services. Managers
for finding the best people, enhancing their skills and knowledge with
know that providing superior customer service depends
training programs and opportunities for personal and professional
on human capital, so they invest in finding the best
people and helping them develop and apply their com-
and providing compensation and benefits that support
the sharing of knowledge and appropriately reward people for their
bined knowledge, skills, experience, and talent.
The importance of human capital for business results is illustrated in Exhibit 9.3, 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 human capital processes
bile business
machinery, success
ga studios, as
depends on the ability to manage human capital,
development,
Yoga)
contributions to the organization. 14
hen
Ра
O
d
Exhibit 9.2 Strategic Human Resource Management
пе
ut
h
to
a
Find the Right
People
• HRM planning
• Job analysis
• Forecasting
• Recruiting
Selecting
en
13
Company
Strategy
Maintain an
Effective Workforce
Wages and salary
• Benefits
• Labor relations
• Terminations
Manage Talent
• Training
Development
• Appraisal
.
308
Part 4 Organizing
workforce planning,
employee accountability. The idea is to show how investments in human capital contribute
to shift to a new strategy that called for stronger customer focus and greater individual
at the bottom (level 3) by assessing internal processes such as
to stronger organizational performance and better financial results. The framework begins
development, performance appraisal, and so forth. Managers use these activities to increase
customer service (level 2). Improvements in key performance areas, in turn, lead to improved
human capital capabilities that drive higher performance in key areas such as innovation or
business results (level 1).15
career
Exhibit 9.3 The Role and Value of Human Capital Investments
Level 1
Total Return to
Shareholders
ROIC or ROE
Revenue
Growth
Business Results
Level 2
Customer
Service
Innovation
Productivity
Quality
Key Performance Drivers
Level 3
Career
Development
Human Capital
Strategy
Recruiting
Rewards and
Recognition
Performance
Appraisal
Workforce
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.
Remember This
• Human resource management (HRM) refers to the
design and application of formal systems to ensure
the effective and efficient use of human talent to
accomplish organizational goals.
• HRM includes activities undertaken to attract, select,
develop, and maintain an effective workforce.
• HR managers are vital players in corporate strategy
because no strategy can be effective without the
right people to put it into action.
• Human capital refers to the economic value of the
combined knowledge, experience, skills, and capa-
bilities of employees.
The
310
Provisions
Part 4 Organizing
Prohibits age discrimination and restricts mandatory
operati
in whic
lenges.
media
made
retirement.
Year
1967
(amended
in 1978 and
1986)
1964
Federal Law
Age Discrimination in
Employment Act (ADEA)
Prohibits discrimination in employment
of race, religion, skin color, sex, or national origin.
on the basis
Civil Rights Act, Title VII
(
Compensation/Benefits
Laws
Health Insurance Portabil-
ity and Accountability Act
(HIPAA)
1996
when changing jobs and get the new coverage
Allows employees to switch health insurance plans
group plans from dropping a sick employee.
regardless of preexisting health conditions, prohibits
leave for childbirth, adoption, or family emergencies.
Requires employers to provide up to 12 weeks unpaid
Prohibits sex differences in pay for substantially equal
1993
Family and Medical Leave
Act
Equal Pay Act
1963
work.
2010
Health/Safety Laws
Patient Protection and
Affordable Care Act
(PPACA)
if the government subsidizes their employees’ health
care coverage; prevents insurers from denying Cov-
erage based on preexisting conditions or charging
by employee) following termination.
Requires continued health insurance coverage (paid
women more than men.
9
1985
Consolidated Omnibus
Budget Reconciliation Act
(COBRA)
Occupational Safety and
Health Act (OSHA)
Establishes mandatory safety and health standards in
1970
organizations.
employ-
a
16
17
Failure to comply with EEO legislation can result in substantial fines and penalties for
ers. 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. Changes in the workplace have
brought about shifts in the types of complaints being seen. Complaints of sexual harassment by
men against both male and female bosses, for example, have increased in recent years. In addi-
tion, fewer complaints are related to blatant harassment and more are related to bosses who make
sexually charged comments and send inappropriate e-mail or text messages. Sexual harassment
will be discussed later in the chapter.
Exhibit 9.4 also lists major federal laws related to compensation and benefits and health
and safety issues. This is only a sampling of the federal laws that HR managers must know
and understand. 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.18 Businesses and managers may
agree or disagree with these laws depending on how the laws affect the recruitment and treat-
ment of their employees. In 2016, the governor of Mississippi signed a controversial “religious
freedom bill” that would allow religious groups and some private businesses to refuse to serve
gay customers based on personal faith. The Mississippi Religious Freedom Restoration Act
was set to become law on July 1, 2016. In the case of this state law, many corporations dis-
agreed. Companies such as Nissan, Tyson Foods, MGM Resorts, and Toyota, which employ
large numbers of people in the state, have denounced the new bill, as have the Mississippi
HOT
TOPIC
Manufacturers Association, the Mississippi Economic Council, and other groups that represent
smaller businesses. 19
wa
DAM
why
311
restricts mandatory
in
lenges.
The scope of HR legislation is increasing
Chapter 9 Managing Human Talent and Diversity
at federal, state, and municipal levels. Companies
operating internationally also have to be aware of laws related to HRM in the various countries
which they do business. In addition, social and technological changes bring new legal chal-
. In 2011, the National Labor Relations Board (NLRB) filed its first lawsuit related to social
media when it filed suit on behalf of Dawnmarie Souza, who was fired because of a comment she
Facebook. Since then, the NLRB has been involved in a steady stream of similar cases.
made
on
ment on the basis
national origin.
20
Remember This
insurance plans
w coverage
litions, prohibits
ployee.
2 weeks unpaid
emergencies
stantially equal
• HR managers have to understand and apply a
variety of federal laws that prohibit discrimination,
to provide certain benefits.
establish safety standards, or require organizations
• Discrimination means making hiring and promo-
tion decisions based on criteria that are not job
• Affirmative action requires that employers take posi-
tive steps to guarantee equal employment opportu-
nities for people within protected groups.
• The National Labor Relations Board (NLRB) filed its
first suit related to social media in 2011 and has
been involved in a steady stream of social media-
related cases since then.
relevant
employees
yees’ health
nying cov-
charging
9-3 The Changing Social Contract
age (paid
employers and employees.
Another current issue is the changing nature of careers and a shift in the relationship between
ndards in
9-3a The End of Lifetime Employment
In the old social contract between organization and employee, the employee could contribute
ability, education, loyalty, and commitment and expect in return that the company would provide
Then along came globalization, outsourcing, hypercompetition, and other volatile changes in
and benefits, work, advancement, and training throughout the employee’s working life.
the environment. Consider the following list found on a bulletin board at a company undergoing
wages
employ-
ne issue
Rights
sexual
when
navior
have
at by
ddi-
ake
major restructuring:
.
.
.
.
We can’t promise how long we’ll be in business. boston boor
We can’t promise that we won’t be acquired. nebentconnaio 2
promotion.
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. bu
We can’t expect your undying loyalty, and we aren’t even sure we want it.21
ent
.
th
W
O
2
This list reflects a somewhat negative view of the new employer-employee relationship, but
there are 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 meet the needs of the organization at the same time managers
give employees the chance to develop their skills and advance their careers. Employees help the
company become more adaptable, while the company helps the employee become more employ-
able. 22 Many young people don’t have any desire to stay with one company throughout their
careers. They like the expectations of responsibility, learning, growth, and mobility embedded in
the new social contract. CEO Reed Hastings of Netflix says of his company: “We’re a team; not a
23
family.” Workplace expert Lynda Gratton says that building trust is more important than loyalty
today
, when “serial career monogamy” is the order for many young employees who are continually
evaluating whether their work is meaningful and challenging and fits with their lives.24
312
Part 4 Organizing
e responsible for develop-
concept of employability rather than lifetime employment. Individuals are
Exhibit 9.5 lists some elements of the new social contract. The new contract is based on the
ing their own skills and abilities and demonstrating their value to the organization. The employer,
employable when the company no longer needs their services. This means
in turn, invests in creative training and development opportunities so that people will be more
important challenge for HRM is revising performance evaluation,
work assignments, opportunities to participate in decision making, and access to information and
resources. In addition, an
including KPMG International, IBM, Microsoft, and Lockheed Martin, have set
pensation, and other practices to be compatible with the new social contract. Many organizations,
and the industry.25 McKinsey & Company has operated an alumni network since the 1960s.26
networks” so that people who have left the organization can keep in touch with former colleagues
product,
branding
candidat
branding
what R
Merrill
One sto
local cl
offering challenging
com-
up
on reci
“alumni social
Howe
AT&
Fast 1
high
grow
9-3b Innovative HR Practices
branding the company as an employer of choice, fast track hiring, and acquiring companies to
The field of HRM is constantly changing. Some important HR issues today are blind hiring,
obtain talent.
ing
emp
hiris
a Sa
or r
Old Contract
a fc
bad
Employee
mc
tic
Exhibit 9.5 The Changing Social Contract
New Contract
• Employability, personal responsibility
Partner in business improvement
• Learning; skill development
Creative development opportunities
Lateral career moves; incentive
compensation
• Challenging assignments
Information and resources; decision-making
authority
Job security
A cog in the machine
Knowing
Standard training programs
Traditional compensation package
• Routine jobs
Limited information and authority
sn
Employer
.
.
W
.
A
1
Careers Es based on Louisa Wah, “The New Workplace Paradox,” Management Reviews Samvinne 1998; 32. Douglas T. Hall and Jonathan E. Moss, “The New Protean
Contract: Helping Organizations Employees Adapt,” Organizational Dynamics (Winter ): 22–37.
a
Blind Hiring When symphony orchestras began using anonymous auditions, employing a cur-
tain to shield auditioning musicians from the view of the evaluating committee, some interest-
ing 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 at major
U.S. orchestras are women, a dramatic increase from the days before curtains were used. 27 Cor-
porations, small businesses, and other types of organizations have picked up on the concept of
anonymous auditions with a trend called blind hiring that focuses managers on an applicant’s
job skills and performance rather than educational credentials, appearance, or prior experience.
Some companies, such as Compose Inc., a cloud storage company recently acquired by IBM,
don’t ask for résumés, which may contain cues that bias readers. Others redact information such
as an applicant’s name, alma mater, or other identifying data, so managers won’t be subconsciously
influenced. With blind hiring, people are usually asked to complete a project or assignment that
relates to the type of work they’ll be doing if hired. Proponents of blind hiring say it contributes to
better, more diverse hiring.28 Levenson Group, a Dallas-based advertising 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.”29
a
30
Branding the Company as an Employer of Choice Managers in many industries often find
that the most skilled and knowledgeable employees are in short supply and great demand.”
Both small and large companies are using employer branding to attract desirable job candidates.
An employer brand is similar to a product brand, except that rather than promoting a specific
a
WAY
branding campaigns
Chapter 9 Managing Human Talent and Diversity
313
Merrill’s team
are like marketing campaigns to “sell” the company and attract the best job
ct is based on the
sible for develop-
n. The employer,
Sle will be more
ing challenging
formation and
-aluation, com-
organizations,
“alumni social
colleagues
1960s.2
began selling the company in the same way that its salespeople sold its services.
ner
on
е
lind hiring,
mpanies to
Or
product, its aim is to make the organization seem like a highly desirable place to work. Employer-
candidates. At Risk Management Solutions (RMS), HR executive Amelia Merrill used employer
branding after she discovered that few people in Silicon Valley, where the firm is based, had a clue
what RMS was. To attract the kind of high-quality technology professionals that RMS needed,
One step was to rent San Francisco’s popular “Bacon Bacon” food truck for a day and set it up at a
z recruiting efforts, as people in the IT industry become more familiar with the company name.
local cloud-computing exposition. Merrill says employer branding is having a slow but sure effect
AT&T, and Credit Suisse Group, are also using employer branding as companies fight for talent.32
However, many large, well-known companies, including PepsiCo, General Electric (GE), Nokia,
high of almost 29 days. However, with the fast pace of today’s business environment and the
Fast Track Hiring In 2015, the average time it took for companies to hire reached an all-time
growing need for employees, some managers are experimenting with a fast track approach, fill-
ing open jobs in a matter of days or even hours. Chipotle, for example, hired 1,800 entry-level
employees in a single day. Return Path Inc., a global data solutions company, uses a single-day
hiring process for entry-level marketers, salespeople, and account managers. At AppDynamics,
r rejection in less than a week. Each promising candidate is interviewed twice by phone within
a San Francisco-based software company, applicants typically go from application to acceptance
back-to-back interviews with AppDynamics employees. The interviewers and the hiring manager
a few days of applying. Those who pass that round come into the office for six to seven hours of
meet for 15 minutes after the final interview and decide whether to offer the candidate a posi-
tion. Fast track hiring is being used particularly in high-tech industries. “The best candidates get
who has helped companies implement one-day hiring.’
snagged quickly,” says John Sullivan, a professor of management at San Francisco State University
Acquiring Start-Ups to Get the Talent Another approach companies use to get talented
employees quickly is to acquire start-ups. Andrea Vaccari created Glancee as a mobile app to
help people find others with similar interests. But just as the company was taking off, he and his
cofounders faced a tough decision-accept an acquisition bid from Facebook or go for broke?
was that Vaccari was already almost broke, living in a closet at a friend’s
apartment.
primarily to recruit them to work at the larger company.”
common in the tech world. Established companies such as Facebook, Google, Yahoo, LinkedIn,
and Salesforce.com buy early-stage start-ups, often shutting them down, simply to acquire their
engineering talent. Yahoo bought 52 start-ups in less than three years, partly to acquire the talent.
age
ty
The problem
Protean
a
a
The co-founders decided to accept Facebook’s offer
, even though they knew that it was made
-acqui-
ir-
st-
to
r
Sunny
Side Up
Yahoo
a
Nick D’Aloisio wasn’t even born when Yahoo was founded, Among the numerous acqui-hires still at Yahoo in early
but he sold his news aggregation service Summly to the 2016 were Jeff Bonforte, who now runs mail and messag-
company for $30 million in 2013 when he was 17 years ing products; Simon Khalaf, who oversees Yahoo’s home
old, making him one of the richest high school students in page; and Arjun Sethi, who works with a team building a
Great Britain. D’Aloisio then tested out of his last year of high new mobile-messaging product. Yahoo has added about
school and went to work in Yahoo’s London office (he left 15 3,000 employees through acquisitions since 2012. Jacque-
Yahoo in late 2015 to focus on his schoolwork at Oxford). line Reses, Yahoo’s chief development officer who oversees
Summly is one of 52 start-ups Yahoo CEO Marissa Mayer has acquisitions, says, “If you actually look at the achievements
acquired for around $2.1 billion to replenish and reinvigo- of some of the people who have been acquired at Yahoo,
rate Yahoo’s workforce and gain the talent needed to try to you would argue (this strategy] has been wildly successful
keep Yahoo relevant as the technology world changes. in order to help change the products.”35
Exhil
The acqui-hiring strategy makes sense for companies such as
Yahoo, Google, and Facebook
314
Part 4 Organizing
because the larger companies get teams of talented engineers who are accustomed to
together. However, working in a larger, bureaucratic company rather than a nimble start-up can
a few times each year for the entrepreneurs who have sold their start-ups to the larger company
be difficult for some acqui-hires. To try to retain these valuable employees, Yahoo holds dinners
and still work there. The dinners give them a chance to share tips with one
opportunity to voice their frustration directly with the CEO.36
another, as well as the
a
Remember This
• The new social contract between employers and
employees is based on the notion of employability
and personal responsibility rather than lifelong
employment at an organization.
• Some companies are using blind hiring by doing
without résumés or by redacting some informa-
tion on résumés and asking applicants to complete
assignments, focusing on the applicant’s job skills
and performance rather than educational creden-
tials or prior experience.
• An employer brand is similar to a product brand
except that it promotes the organization as a great
place to work rather than promoting a specific
product or service.
• Rather than spending weeks making hiring deci-
sions, companies such as Return Path Inc., Chipotle,
and AppDynamics are using fast track hiring to
bring on new employees in a matter of days or even
hours.
• Acqui-hiring means buying an early-stage start-up
(and usually shutting it down) in order to obtain its
creative talent.
• Yahoo acquired 52 start-ups in less than three
years, adding about 3,000 acqui-hires.
9-4 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 man-
agers or HRM professionals predict the need for new employees based on the types of vacancies
that exist, as illustrated in Exhibit 9.6. The second step is to use recruiting procedures to com-
municate with potential applicants. The third step is to select from the applicants those
persons
believed to be the best potential contributors to the organization. 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. 37 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.
.
a
9-4a Human Resource Planning
Human resource planning is the forecasting of HR needs and the projected matching of individ-
uals 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 5 to 10 years?
?
What is the turnover rate, and how much, if any, is avoidable?
Exhil
The acqui-hiring strategy makes sense for companies such as
Yahoo, Google, and Facebook
314
Part 4 Organizing
because the larger companies get teams of talented engineers who are accustomed to
together. However, working in a larger, bureaucratic company rather than a nimble start-up can
a few times each year for the entrepreneurs who have sold their start-ups to the larger company
be difficult for some acqui-hires. To try to retain these valuable employees, Yahoo holds dinners
and still work there. The dinners give them a chance to share tips with one
opportunity to voice their frustration directly with the CEO.36
another, as well as the
a
Remember This
• The new social contract between employers and
employees is based on the notion of employability
and personal responsibility rather than lifelong
employment at an organization.
• Some companies are using blind hiring by doing
without résumés or by redacting some informa-
tion on résumés and asking applicants to complete
assignments, focusing on the applicant’s job skills
and performance rather than educational creden-
tials or prior experience.
• An employer brand is similar to a product brand
except that it promotes the organization as a great
place to work rather than promoting a specific
product or service.
• Rather than spending weeks making hiring deci-
sions, companies such as Return Path Inc., Chipotle,
and AppDynamics are using fast track hiring to
bring on new employees in a matter of days or even
hours.
• Acqui-hiring means buying an early-stage start-up
(and usually shutting it down) in order to obtain its
creative talent.
• Yahoo acquired 52 start-ups in less than three
years, adding about 3,000 acqui-hires.
9-4 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 man-
agers or HRM professionals predict the need for new employees based on the types of vacancies
that exist, as illustrated in Exhibit 9.6. The second step is to use recruiting procedures to com-
municate with potential applicants. The third step is to select from the applicants those
persons
believed to be the best potential contributors to the organization. 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. 37 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.
.
a
9-4a Human Resource Planning
Human resource planning is the forecasting of HR needs and the projected matching of individ-
uals 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 5 to 10 years?
?
What is the turnover rate, and how much, if any, is avoidable?

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