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HUMANRESOURCE
MANAGEMENT
An Asian Perspective • Second Edition

GARY DESSLER • CHWEE HUAT TAN

PRENTICE HALL

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Preface xxi
Acknow ledgments xxix

Part l Introduction 3

1. Intr od uction to Hu man Reso urc e Management 3

2. Equal O pp o rtu nit y and the Law 33
3. Strateg ic HRM and the H R Sco recard 51

Part 2 Recruitment and Placement 75

4. Job Ana lys is 76

5. HR Plann ing and Recr uitin g 101
6. Em ployee Tes tin g and Selection 136
7. In te rview ing Ca ndid ates 157

Part 3 Training and Development 185

8. Traini ng and Deve lopin g Emplo yees 185

9. Per form ance Management and Appraisa l 221
10. Manag ing Ca reers 257

Part 4 Compensation 285

11. Establ ishin g Strateg ic Pay Plans 285

12. Pay for Performance and Financia l Incenti ves 319
13. Benefit s and Serv ices 351

Part 5 Employee Relations 377

14. Ethics, Justice, and Fair Treatment in HR Manageme nt 377

15 . Employment Relat ions and Co llect ive Barga ini ng 411
16. Employee Safety and Health 443
17. Manag ing Globa l Hum an Reso urc es 469

Photo Cred its 499

Glossa ry 501
A uth o r Ind ex 509
Subj ect Ind ex 513
r.

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t
l

BLANK
Prefa ce xxi
Ack n ow ledg ments xxix

PART1 INTRODUCTION 3

Chapter 1 Introduction to Human Resource Management 3

Human Resource Management At Work 4
Wh at is Ma nagemen t? 4
Wh at is Human Reso ur ce Ma na ge ment? 4
Why is H RM Im po rtant to Mana gers? 4
Line and Staff Aspects of HRM 5
Line Manager's HR Dut ies 5
HR Manager's Duti es 6
Size o f HR Departm ent 6
Coope rative Line and Staff HR Manage men t: Some Examples 8
The Cha n g ing Environment Of HRM 9
Globa liza t ion and Its Im p licat io n 9
Technologica l Advances 10
Chan ges in th e Nature of Work 10
Chan ges in Workforce Demograp hi cs 10
The C han g ing Ro le Of HRM 10
Wha t is Strategic Planning? 10
Wha t is Str ategic HRM ? 10
Creating High-Performa n ce Work Syste ms 11
Outso ur cing H R Act iv ities 11
High -Perform ance Work Sys tems 11
Measur ing HRM Tea m 's Performanc e 12
Managing w ith HR Scoreca rd 12
Profic ie n c ies O f A HR Manager 13
HRM And Profess iona lism 14
HR Certification 14
Is HR a Profess ion ? 15
Profess ional Institutes 15
Qual ification and Leve l of Me mbership 15
Workplace Ch allenge for the HR Professio n als 16
HR And Cu ltura l Values 16
Sun Tzu 's Art of War 16
H an Fei Tzu: Rewa rd and Punis h ment 17
HR and Relig iou s Values 17
tvjulticultu ral Workforce in Ma lays ia 18
Nat ional Values 19
Plan Of This Book 20
Basic Themes of this Book 20
Topics are Inte rrelated 22
 Contents

Chapt er Summa ry 22
Key Terms 22
sHRe wd 23
Di scus s ! 23
Int er act! 23
U se Your HR Ski lls!: Is Th e re a Need for a HR Departm en t? 23
Expe rie nce HR!: H RM as a Strateg ic Pa rtne r 24
Kw ik & Klee n La undr y : A Co ntinuin g Case 25
HR Today : Major HR Professional Institutes In The Asia Pacific 27

Chapter 2 Equal Opportunity and the Law 33

Equal Emp loyment O p portunity In The United States 34
Th e C iv il Rig ht s Act 35
Bona Fid e Occ up ational Qualificatio n 35
Divers ity Management And Affirmat ive Act io n 36
Man ag in g Dive rs ity 36
Equa l Empl oy m e nt Opportunity ve rsus Affi rmativ e Ac tio n 37
Discrimina tion Laws In The Asia Pac ific 38
Austra lia 38
H o ng Kon g 38
Indone s ia 39
Jap a n 39
Singapor e 39
So u th Kor ea 40
Prot ec tio n Aga in s t Sex ual H ara ss m e nt 41
Chapt er Sw111nar_11 4 1
Key Terms 4 1
sHRewd 42
Di scu ss ! 42
Int erac t! 42
Use Your HR Skill s!: A Case of Sex ual Disc rimin a tion 42
Expe rie nc e HR! : Retir e m en t at 62 43
Kw ik & Klee n Laundr y Co mp a ny : A Co ntinuin g Case 43
HR Today : Co d e Of Responsible Employment Pract ic e s 45
HR Today : Age-Friend ly Empl oyment Pract ices -A Guid e For Business 48

Chapter 3 Strategic HRM and the HR Scorecard 51

Strategic M an a gemen t Process 52
Seve n Steps in Str a teg ic Man age m en t 52
Type s of Strategies 54
Co rpora te Strategy 54
Co mp etiti ve Strat egy 54
Functiona l Str a tegy 55
HRM 's Ro le in Creating Competitive Advantag e 55
Str ategic H RM 56
HRM 's Stra tegic Roles 57
St rat egy Exec ut ion Ro le 57
Stra tegy Form ul at ion Rol e 57
Creating A Stra tegic HRM System 57
Hi g h -Pe rfo rm a n ce Work System 58
Mea surin g HR 's Effect ive ness 58
Tran s latin g Str at egy in to HR Po licy and Pr ac tice 59
 Contents

C/rnpler S11111111nry
61
K,:y Ter111s 6.1
sHRew d 62
Discuss ! 62
Interact! 62
Use Your HR Skills!: Siem ens Builds a Strategy-Or ien ted HR System 62
Experience HR!: Developing HR Strategy for Starbuc ks 63
Kwik & Klee n Lau ndr y Company: A Continu in g Case 63
HR Today : Using The HR Scorecard Process 65
V ideo C ases: Part l 72

PART2 RECRUITMENTAND PLACEMENT 75

Chapter 4 Job Analysis 75

Bas ics Of J o b Ana lysis 76
What Type of Information is Collected? 76
Uses Of Job Ana lys is Information 77
Cornpensat ion 77
Trninin g 77
Performance App raisa l 77
Steps In Job Analys is 77
Methods For Co llecting J ob Analy sis Information 78
Th e Interview 78
Que stionn aire 79
Observat ion 82
Partic ipant Diary 82
Writing Job Descriptions 82
Job Summar y 86
Re lati onsh ips 86
Res ponsibi lities and Duti es 86
Sta nd a rds of Performance and Working Condition s 86
Writing Job Specifications 87
Spec ifications Based on Judgment 87
Job Spec ification s Based on Stat istica l Ana lysis 87
Job Ana lys is In A "Jobless " World 88
From Specialized to Enlarged Jobs 88
Why Manage rs are "Dejobbing" their Co mp an ies 88
Flatter O rga niza tion 89
Self-Managing Work Team 89
Re-eng inee ring 89
Co mp ete ncy-Base d Job Analysis 90
What are Competenc ies? 90
Reasons to Use Compe tency Ana lys is 91
How to Write a Competencie s-Based Job Descript ion 91
Self-Managed Teams In Asia 91
Clrnpter S1111111rnr_1194
Key Tm11s 94
sHRewd 95
Discus s! 95
In teract! 95
Use Your HR Skills!: Typhoon Alice 95
 Exp e ri en ce HR!: The In s tru ctor 's Jo b De sc ript ion 96
Kwik & Kleen Laundr y Co mp an y: A Co ntinuin g Case 96
The HR Scorecard : Strategy And Results-Hotel International 97

Chapter 5 HR Planning and Recruiti ng 10 1

Recruitm e nt And Selection Process l 02
Planning And Forecas ting l 02
Forecasting HR Needs l 03
Trend Ana lys is 104
Ratio Analysis 104
Scat te r Plot 104
Com put er Forecast 105
Managerial Jud g m en t 105
Forecasting The Supply Of Internal Candidates l 05
Manua l Sys te m s a n d Replacement C h arts 106
Perso nnel Re pl ace m en t C h a rt s 106
Co mput er ized Inform ati on Syste m s 106
Matter of Privacy 107
Fore cas ting The Supply Of Externa l Candidates 108
Effecti ve Rec ruit ing 108
Cons is tent w ith Co mp an y's Strategy 108
Th e Recr u iting Yie ld Pyramid 108
Internal Sourc es Of Candidates 109
Finding Int e rn a l Ca ndi dates 110
Re- hirin g 110
Succession Planning 110
Sources Of Externa l Candidates 111
Advert is in g 111
Emplo ymen t Agencie s 112
Us in g an Agency 113
Te mp Agencies a nd A lte rnati ve Staffi n g 113
Exec uti ve Recruiters 113
Campus Recruiting 114
Ca mpu s Recruit in g Goa ls 115
O n -Site Vis its 115
Int e rn s hip 116
Referral 116
Wa lk-In 116
Recruiting By The Internet 116
A n Effective Web A d 116
Developing And Using Application Form s 117
A p p licatio n Forms (Comp ly in g w ith US Emp loyme nt Law s) 117
Recruitment Practices In Asia 118
Recruitment in Chin a 119
Rec ruitm en t in Hong Kong 120
Recr ui tme n t in Ind ones ia 120
Recruitment in Malay s ia 12 1
Rec ruitm e n t in th e Ph ilipp in es 122
Rec ruitment in Sin ga p ore 122
Rec ruitment in So uth Ko rea 124
Recruitment in Th a iland 125
Rec ruitm en t in Viet nam 126
 Contents

Chnpter S11111111nry127
Key Tams 127
sHRewd 128
Disc uss! 128
Int e ract! 128
Expe rience HR!: Th e Nur sing Sho rtage 128
Kw ik & Klee n La undr y Co mp any : A Co n tinuin g Case 129
The HR Sc o rec a rd : Strategy And Results-Hotel Int e rnationa l 130

Chapter 6 Employee Testing and Selection 136

Employee Testing And Selection 136
Why Ca refu l Selection Is Imp ortant 136
Pro tect ion Aga inst Neg lige nt Hi ring '136
Ba sic Test ing Concepts 136
Re liabi lity 136
Valid ity 137
How To Validate A Test 138
Types Of Tests 141
Tests of Menta l Ab ilities 141
Tests o f Phys ica l Ab ilities 142
Meas ur ing Pe rso na lity and Inte rests 142
Int e res t Inve nt ories 142
Achi eve ment Tes ts 143
Wor k Sampl e 143
Management Assessmen t Cente r 144
Miniature Job Training And Evaluation Approach 145
Other Selec tion Methods 145
Backgro und In form at ion and Refe rence Check 145
Med ica l Exami na tion 147
Co m p ly ing w ith Im m ig rat ion Law 147
Testing And Selection Practices In Asia 148
Hong Kong 148
Japa n "148
Malays ia 148
Singapore 148
South Korea 149
Thailand: Co m pa rin g Am er ica n, Japanese, and Th ai Companies 149
Vietn am 150
Clinpter S111111
11ary 150
Key Terms 150
sHRewd 15 1
Discuss ! 151
Inte ract! 151
Use Your HR Skills!: Where Is O ur Sw immin g Tea m? 151
Exper ience HR!: A Test for a Rese rvat ion C lerk 152
Kwi k & Klee n Laun dry Co m pany: A Co ntinu ing Case 152
The HR Sco recard : Strategy And Results-Hotel International 153

Chapter 7 Interviewing Candidates 157

Basic Features Of Interviews 158
Types Of Inte rviews 158
Struct ur ed ver sus Uns truct u red Interv iew 158
 ,~ #":"-~-~~- ~-?~ ~~~~~~ . ::-
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l
Administering The Interview 162
I.ndi vi du a l Interv iew 162
Sequent ial Int erv iew 162
Panel Inter v iew 163
Te leph o ne Jnte rv iew 163
Co mput e ri zed Int e rv iew 163
A re Int e r v iews U sef ul ? 164
Common Interview M istakes 164
Fir st Impressio n 164
Poor Kn ow led ge of th e Job 165
Ca ndid ate-O rd er Erro r 165
Pre ssur e to Hi re 165
Im pre ssio n o f No n- ve rb al Beh av io r 165
Effec t o f Perso n a l C har acteristic s 165
ln ter v ievver Beh av io r 165
Design And Conduct An Effective Int e rview 165
The Stru ctu red Sit u ational Int e rv iew ·165
How To Condu c t A More Effective Intervi e w 167
Prepa re for the Inter v iew 170
Specific Factors to Lo o k fo r in th e Interv iew 17l
Co nductin g the Int e r v iew- H ave a Pl an 171
Matc h th e Ca n d id ate to th e Job 17 1
Chnp ter S11l11111ary173
Key Terms 173
sHRewd 174
D iscu ss! 174
In teract! 174
Use You r HR Sk ill s!: The O ut- of-Co n tro l Inte rv iew 174
Exper ienc e HR! : The Most Imp o r tan t Per so n You W ill Eve r Hir e 175
Kw i k & Kl een Laundr y Co mpan y: A Co n tinuin g Ca se 176
The HR Scorecard : Strategy And Results-Hotel International 177
HR Today : Guidelines For Interviewees 180
Vid e o Ca ses : Part 2 182

PART3 TRAINING AND DEVELOPMENT 185

Chapter 8 Training and Developing Employees 185

Orienting Employees 186
The Training Process 186
Th e Fi ve-S tep T ra inin g Proce ss 187
Tra inin g, L ea rnin g, and Mot i va tin g 187
Training Methods 189
On-t he-Job Tra inin g 190
A p p renti ceship Tr a inin g 19 1
L ec tu res 192
Programm ed Learn in g 192
Au di ov isu al -Based T ra inin g 192
Simul ated Tra inin g 193
Co mpu ter-Based Tr a inin g 193
D i stan ce and In terne t-Base d Tr ain i ng 193
Teletr ai n ing 193
 Contents

Management Development 194

Suc cess io n Planning 194
Ma n ager ial On -the -Job Trainin g 194
Off -th e-Job Manag e m e nt Training 195
Organizational Development 196
Hum a n Pro cess Application s 197
Techno- structur a l Int e rve nti on 198
Human Reso ur ce Management App lication 198
S tr a tegic OD App lication 199
Eva luating Training Programs 199
Desi g n the Stud y 199
M eas urin g Training O ut co m e 200
Training And Development In Asia 200
C hin a 200
H o ng Kong 202
India 202
In done s ia 203
Ja pa n 204
Malay s ia 204
Ph ili ppin es 206
S in gapo re 207
South Korea 209
Tai wa n 209
Thailand 210
Vie tn a m 211
Regional Management Organizations 21 l
The As ian Assoc iat ion of Ma na ge m e nt Orga ni zat ion s 211
Th e A ssoc iati o n of Sou th eas t Asian In stitut es of Hi gher Lea rnin g 211
A ssoc ia tion o f Dea ns of So uthea s t Asian Grad ua te Schoo ls o f Management 212
Chapter S11111111nry
212
Key Ter111
s 212
sHRewd 213
D iscu ss ! 213
Int eract! 213
Use Your HR Sk ills !: Reinve ntin g th e Wh ee l at Apex D oor Compan y 213
Ex perienc e HR!: Fly in g the Friend lie r Sk ies 214
Kwik & Kl ee n Laundry Company: A Conti nuin g Case 214
The HR Sco rec ard : Strategy And Results-Hotel Internationa l 215

Chapter 9 Performance Management and Appraisal 221

Purpose Of This Chapter 222
Bas ic Concepts In Performance Management And Appraisal 222
Defin in g the Empl oyee's Goa ls an d Work Standard s 223
Introduct ion To Appra ising Performance 223
Th e Sup e rv iso r' s Role 223
HR' s Role 223
Steps In Apprais in g Performance 224
Appraisal Methods 224
G rap hi c Ratin g Sca le Method 224
A lte rn a tion Rankin g Me thod 230
Pai red Compa riso n Me thod 230
Forced Di stributi on Method 230
 I ,
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. . . .. - . . ._ ..

Cr iti cal Incid ent Method 230

Na rra tive For m s 232
Beh avio ra lly Anc hored Rating Sca les 2
33
Managemen t By Object ives 235
Prob le m s wit h MBO 236
Comp u te rized and Web-based Performan A .
Mi x ing th e Methods 236 ce pp ra1<
sa l 236
Appraising Performance : Problems And Solutions
237
Potential Rating Sca le App raisal Probl em s
237
H ow to Avo id Appra is al Pr ob lems 238
Who Should Do The Appraising? 239
Direct Superv iso r 239
Pee r Appra isals 239
Rating Commit tee 239
Self-rating 239
Appraisa l by Subordina tes 240
360- Degree Feedback 240
The Appraisal Interview 240
Ty p es of In te rviews 240
How to H a nd le a Defe n s ive Subor din ate 2 42
How to Cr iticize a Subordinat e 243
H ow to Ens ur e the Int erv iew Lead s to Better Pcr·f .
. o r rnance 243
H ow to H and les a Fo r ma l Wri tten Warn ing 2 43
Creating The Total Performance Management Process
243
Performance Appraisal In Asia 244
C hin a 244
Hong Kong 245
Sin gapo re 246
Sou th Korea 246
Thailand 247
Viet n am 247
Chapter Summary 249
Key Terms 249
sHRewd 250
D isc u ss ! 250
Int eract ! 250
Use You r HR Ski lls !: App rais in g th e Sec ret aries at C ity Uni ve rsity 250
Exp er ience HR! : Grad in g th e Pro fessor 251
Kw ik & Kle e n La undr y Com pan y: A Cont in u in g Case 252
The HR Sco recar d : Strategy And Resul ts-H o te l Inte rn a tio n al 253

Chapter 1O Managing Careers 257

Purpose Of This Chapte r 258
The Basics Of Career Management 258
Careers Tod ay 258
Roles In Career Development 259
Innovative Corporate Career Development Initiat ives 26 l
Managing Your Career 26 l
Id entif y You r Ca ree r Stage 26 1
Ide n tify Occupa tional Or ientation 263
Ident ify Your Sk ills 264
Id entif y Your Caree r Anc hors 265
 Contents

Manag ing Pro m o ti o n A nd Transfe r 26 7

Mak in g Prom ot ion Decisio n s 267
H a ndlin g Tra n sfe rs 268
Care e r Ma n age m ent And Emp loyee C omm itt m en t 268
Th e New Psy cho log ica l Co ntra ct 269
Co mmitm e nt- o rie nt ed Ca ree r Deve lo pm e nt Effo r ts 269
C a ree r-o rie nt e d Appr a isa l 269
Re tire me nt 269
Confucia n C ultur a l Pe rspecti ve s On Work A nd Caree r 27 0
Care e r Man a ge m e nt In Asia 27 1
C hin a: Lea d e rsh ip Be ha v io r a nd Em p loyee Turn over 27 1
Ca ree rs of Ho ng Ko ng Mana ge rs 272
C ar ee rs of Ja pan ese Ma n age rs 272
Car ee rs o f Ma nage rs in Ta iv.,an 272
Th a i Cu ltur a l Va lues a nd Ca ree r 273
Clinpte r S11111111nry 274
Key Ter111 s 274
sHRewd 275
Di sc u ss ! 275
Int e ra ct! 275
Kw ik & Klee n La undr y Co mp a ny : A Co nt in uin g Case 275
The HR Sco recard : Stra tegy An d Result s-Hot e l Inte rnation a l 276
HR Today: Writ ing Your Re su me 279
Video Ca ses : Part 3 282

PART 4 COMPENSATION 285

Chapter 11 Establishing Strategic Pay Plan 285
De t e rmi n in g Pay Rates 286
Corp o ra te Po licy, Co mp e titi ve St ra tegy, a n d Co mp e nsat io n 286
Equ ity A nd Its Impac t O n Pay Rate s 287
Fo ur Fo rm s o f Equit y 287
Dea lin g w ith Equi ty Iss ues 287
Estab lishin g Pay Rat es 288
Th e Sa la ry Sur vey 288
Job Eva lu a tio n 289
G roup Simil a r Jobs In to Pay Gra d es 294
Pric e Eac h Pay G ra de- Wage C ur ves 294
Fin e- Tun e Pay Rates 295
Pric in g Ma n age ria l A nd Profess iona l Jobs 296
Co mp e nsat ing Ma nage rs 297
Wh a t Rea lly De termi nes Exec uti ve Pa y? 297
Man age rial Job Eva lu a tio n 298
compe nsa tin g Profess io nal Emp loyees 298
Compe te ncy -Based Pay 298
Wh a t is Co m pe tency- base d Pay? 298
Wh y Use Co m pete ncy-b ased Pay? 299
Co m pe te ncy -based Pay in Prac tice 300
Co ff1pe te ncy- based Pay: P ro s, Co ns, a nd Res u lts 300
C ompe nsat io n Trend-Broadb a ndin g 300
Why Broa d ba nd ? 300
 Government Gu idel in es On Wages 301
Minimum Wage 302
Ch in a 302
Ind o nes ia 302
Ja p a n 303
Lao s 303
Phili p pin es 303
Sing ap o re 303
So u th Ko rea 303
Th a ila nd 303
Vie tn a m 304
C/1ap ter Summa ry 304
Key Terms 305
sHRe wd 306
D isc u ss ! 306
In te rac t! 306
Exp e r ie nc e HR!: Ran ki ng the Co llege's Adm 1· .
n1st rato . 30
Kw ik & Klee n Laundr y Co mp a ny : A Co nt ·,n . is 6
uin g C 30 7
The HR Sc or ec a rd : Strategy And Results-Hotel lnte a~c
HR Tod a y : Quantitative Job Eva luation Methods 3 ~~ational 307

Chap te r 12 Pay for Performance and Financial 1 .

ncenhves 319
Purpose Of This Chapter 320
Money And Motivation 320
Pe rfo rm a nce a n d Pay 320
In d iv idu a l Diff e ren ces 320
Psyc h o log ica l Needs an d Mot ivato rs 321
Ins tr u m e n ta lity a nd Rew a rd: Vroo m 's Theo ry 321
Types Of Incentive Plans 322
Indi vid ual Employee Incen ti ve And Recognition Program s
323
Piecewo r k Plan 323
Me ri t Pay 323
Recog ni t io n- Base d Awar d s 325
Sales Compensa tio n Plans 325
Sa la ry Pla n 325
Com m iss io n Pla n 325
Combi n at ion Plan 326
Set t in g Sa les Q u ota s 326
Team Incentive Plans 328
H ow to Des ig n Tea m In ce n t ives 328
Team Ince nt ive Pla n s 328
Pros a nd Cons o f Tea m In ce n tives 328
O rgan izat ion -Wide Variable Pay Plans 328
Pr o fit-Sh ar in g P la n 329
Em p loyee Stoc k Owne rsh ip Plan 330
Sca nl o n Pla n and Ot he r Ca in sh a rin g Plan s 330
Executive Inc e ntive Compensat ion Programs 33 1
Sh o rt -Ter m In ce nt ive s : Th e A nnu a l Bo nu s 332
Lo n g-Te rm Incen t ives 333
Develop ing Effective Incentive Plans 334
W h y Incen ti ve Pl a n s Fa il 335
H ow to Imp leme n t In ce n t ive Pla ns 335
 Contents

In ce ntiv e Program s In Asia 336

Pay And In ce ntiv e Practices In Asia 337
C hin a: Wage Refor m 337
H ong Kong: Use of Sur vey Findin gs 337
In d ia 338
In dones ia 338
Japa n : Sprin g Labo r Offe ns ive 338
Kor ea : M ixe d Syste m 338
Ma laysia 339
Phili ppines 340
Sin gapo re 340
Ta iwa n 340
Thai land 340
Vie tn a m 34 1
CJ,np l er S1111111,nry 342
Key Ter111 s 342
sHRewd 343
D isc u ss ! 343
Int e ract! 343
Use Your HR Sk ills!: In se rtin g th e Tea m Co m pensation-or No t 343
Exper ien ce HR!: Motivating th e Sa lesfo rce at Express Auto 344
Kw ik & Kleen Laundr y Compa ny: A Con tinuin g Case 345
The HR Scorecard: Strategy And Res ult s- Hot e l Int e rnati ona l 346

Chapter 13 Benefits and Services 351

Purpose Of This C hapt e r 352
Benefits 352
Pay fo r Ti m e Not Wo rked 352
In su ra n ce Benefits 354
Re tir e m e nt Bene fits 355
Se rv ices a nd Fami ly -Friend ly Be n e fits 355
Flexible Benefits Program 357
The Cafe te ria Approach 357
Flex ibl e Program s: P ros a nd Co n s 358
Flex ibl e Work Arrang e m e nt s 359
Flext im e 359
Co m p resse d Workweek 359
Job Sh a rin g 359
Te lewo rkin g 359
Benefit Programs : Some Asian Exa mpl es 360
Types of Ben efits and Se rv ices 360
Flexible Be ne fits 36 1
O bjec ti ve of Flex ibl e Benefits P lan 36 1
Advan tages of Flex ibl e Ben efits 36 1
Reas on s fo r No t In troducing Fle xible Benefi ts 36 1
Typic a l Flex ib le Be ne fits P lan 36 1
In tr o ducing a Flex ib le Ben efits Plan 362
Survey on Empl oyee Benefi ts 363
MOM Su rvey o n Staff Leave and We lfare Benefit s 364
Practices In So m e Asian Co untri es 365
Chin a 365
India 365
 Japa n 365
Malay sia 366
Sin ga pore 366
South Korea 367
Thailand 367
Vietnam 367
Chapt er Summary 368
Key Terms 368
sHRe wd 369
Di scuss! 369
In teract! 369
Use Your HR Skill s!: Rev isin g the Benefits Package 369
K w ik & Kl een Laundr y Co mp any: A Co ntinuin g Case 370
The HR Scorecard : Strate g y A nd Res ults-Hot e l Int e rn a tional 370
Vide o C as e s: Part 4 374

PART 5 EMPLOYEE RELATIONS 377

Chapter 14 Ethics, Justice, and Fair Treatment in HR Management 377

Ethics And Fair Trea tm ent At Work 3 78
G ift-g i v in g and Exc hange of Favor 379
Cor rup tion and C uan x i 379
Eth ics and the L aw 380
Protecting Whist leb lowers 380
Ethi cs, Fair Treat men t, and Jus ti ce 380
What Affects Ethical Behavior At Work? 38 0
O rgan iza ti ona l Factor s 381
Societal, C ultur al, and Reli gio us Facto rs 381
Supe rst it io n and Traditional Beli efs 385
The Ethi cs Co d e 386
O r ga ni za ti onal Cultur e 386
Th e Ma nager's Role 386
The Role Of HR In Ethics And Fair Treatment 38 7
HR Ethi cs Ac ti v iti es 387
Building Two -Way C ommun icati ons 388
Employee Discipline 38 9
Rul es and Reg u lat io ns 389
A Syste m of Prog ressi ve Penalti es 389
An Appe al Pr ocess 389
M ana g ing Dismissal 390
Reasons for Di smi ssal 390
Avo idin g Wro ngf ul D ischarge Sui ts 391
The Terminat ion Int erv iew 391
Layoff 393
Dealing With Discipline A nd Dismissal In Asia 394
Di scip lin e in Mala ys ia and Sin ga pore 394
Termination Of Employment In A sia 396
Cambod ia 396
Ch ina 396
Hon g Kong 397
In do nesia 398
 Contents

Jap an 398
Ma lays ia 398
Philippin es 399
Sin ga p o re 399
So uth Korea 400
Th a ila nd 400
Vietnam 401
Chapt er Sw11111nr y 402
Key Ter111s 402
sHRewd 403
Di sc u ss ! 403
Int era ct! 403
Use Your HR Sk ills!: Fir e My Best Sa les per so n ? 403
Experie nce HR! : Fly in g th e Fr iendli e r Sk ies 404
Kwik & Klee n La undr y Com p a ny: A Cont inui ng Case 405
The HR Sc o re c a rd : Strategy And Results-Hotel International 406

Chapter 15 Collective Bargaining and Employment Relations 411

What Is A Trad e Union? 4 12
Objectives o f a Tra d e Uni on 412
Typ es Of Unions 413
C raft o r Occupation Uni on 413
Ge ne ra l Uni on 413
Sta ff Un ion 413
Indu str y Union 413
H ou se Uni o n 41 3
Why Workers Join Unions 414
Collective Bargaining 415
Definit ion of Co llec tive Barg a inin g 415
Re pr es entation 415
Co nt e nt s for Bar gaining 415
Advantages of Co llective Ba rga inin g 415
Pe rspectives Of Collective Bargaining 415
Beh av iora l Pe rs pec ti ve 415
Economic P e rs pec ti ve 416
Leg a l Pe rsp ec tiv e 416
Conditions For Successful Bargaining 416
Freedo m of Associat ion 416
Sta bility of th e Union s 416
Recog nition of Uni o n by Emp loyer 416
Good Fa ith 416
Mutu a l Res p ec t 417
Suppo rti ve Lega l Sys te m 417
Negotiations 41 7
Typical Nego ti ati on Proc ess 417
Ste ps in Nego ti ati on 418
Ways To Settle Disputes 419
Conc ilia tion 419
M ed iat ion 419
A rbi tra tion 420
Collect ive Agreemen t 420
Nat u re Ag ree m e nts 420
Type s of Ag ree me n ts 420
 --=

Employment Relation s 42 1
D u nlap's Mod el 422
Br unei 423
Cambod ia 423
China 424
Hon g K ong 424
Indi a 426
Indon esia 426
Japan 427
Laos 428
Ma laysia 428
Mya nm ar 430
Phi lip p in es 431
Singapore 431
Sou th Korea 432
T hailand 433
Vietnam 434
C/l(lp fer Swnmnry 435
Key Ter111 s 435
sHRewd 436
Discu ss! 436
I ntera ct! 436
Use Your HR Sk ill s!: D iscipl inary A cti on 436
Experi ence HR! : Formin g a Uni o n 437
Kw i k & K leen Laund ry Co m pa ny : A Co n tinuin g Case 437
The HR Scor e ca rd : Strategy And Results-Hotel Internationa l 438

Chapter 16 Employee Safety and Health 443

Purpose Of This C hapte r 444
Safety And Heal th At The Workplace 444
Management Com mitm ent 444
What Ca uses Acciden ts? 44 5
Chan ce Occ u rre nces 445
Uns afe Condi ti ons 445
W hat Ca uses U nsafe Acts? 446
How To Preve nt Accidents 446
Reduc ing Un safe Co nd it io ns 446
Red ucing U nsafe Act s by Emp hasi zing Safety 448
Redu cing Un safe A cts Thro ugh Selectio n 448
Redu cin g Un safe Act s Throu g h Tr ain ing 448
Red ucing Un safe Act s Throu g h Motivation 449
Behav ior-Based Safety 449
Use Emp loyee Partic ip ati o n 449
Co nduct Safety I nspec tions 449
Job Stress 450
Reducing Job Stress 451
Burnout 452
AIDS And The Workplac e 454
Co m pute r-Related Heal th Prob lems 454
Safety And Hea lth Issue s In Asia 455
Ch ina 455
H ong Kong 456
 Conte nts

In dones ia 456
Japan 456
Ma lays ia 456
S in gapore 457
South Kor e a 457
Thai land 458
Chapter S1111111ra ry 458
Key Teri/IS 458
sHRe wd 459
Discuss! 459
Int eract! 459
Use Your HR Ski lls !: Learning.Com 459
Exper ience HR!: H ow Safe is My Sc ho o l? 460
Kwik & Kle e n Laundr y Company: A Cont inuin g Case 463
The HR Scorecard: Strategy A n d Results - Hote l Internat ional 464

Chapter 17 Managing Global Human Resources 469

Purpose O f This Chap t er 470
HR A n d The Int e rn a ti ona lizat ion Of Business 470
How Inter -Coun tr y Differe n ces Affect HRM 470
Cultura l Factors 470
Eco n o mi cs Systems 471
Lega l an d Empl oy m ent Re latio ns 472
G loba l Differences And Similarities In HR Practices 472
HR Se lectio n Procedure s 472
P urp ose of Performance App rai sa l 472
Tra inin g and Dev e lopment Practice s 472
Imp o rt a n ce of Pay Incent ive s 472
How To Imp lement A Globa l HR System 473
Make th e G lobal HR System M o re Acceptab le 473
Develop a More Effec ti ve G loba l HR System 474
Impl eme ntin g the G loba l HR Sys tem 474
Staffing The G loba l Organ ization 474
Int e rn at io nal Staffin g : H ome o r Local? 476
Offshor in g 476
Valu es and Int e rnation a l Staffi n g Polic y 476
Why Int e rn a tiona l A ss ig nm en ts Fa il 477
Se lect in g In ternat iona l Mana gers 478
Tra inin g And Ma inta in in g Expa tri ate Emp loy ees 479
Trainin g Emplo yees o n Int e rnation a l Ass ig nment 479
Trend s in Expatr iate Tra inin g 480
Compe nsa tin g Expatriate s 480
The Bala nce Shee t Approac h 481
In ce nti ves 482
Appra is in g Expat riate Ma nagers 482
Int e rnationa l Employme nt Relation s 483
Te rrori sm, Safety, a nd G loba l HR 483
Repa tr iatio n : Prob lem s a nd So lu tions 483
A Fina l Word: Aud itin g th e HR Fun ction 483
Int e r-Co untry Lab o r Flow 484
Brun e i Da ru ssa lam 484
C hin a 485
 Hong Kong 485
Indo n es ia 486
Japa n 48 7
Ma lays ia 487
Phi lippi nes 488
Singapor e 488
So uth Korea 489
Th ailan d 489
Vietnam 490
Implicat ion For HR Managers 490
Clrapter Summa ry 49 1
Key Terms 491
sHRewd 492
D iscuss! 492
In terac t ! 492
Use You r H R Sk ills !: "Bo ss, I Th ink We H ave a Problem"
492
Exp erienc e H R !: A Tax ing Prob lem for Exp atriate Empl oyees 493
Kw ik & Kleen Laun dry Co m pan y : A Cont inu ing Case 493
The HR Sco re c ard : Strategy A nd Resu lts- Hotel Interna tiona l 494
Vid e o Ca ses: Part 5 498

Photo Cred its 499

Glossary 501
Aut h or Inde x 509
Subj ec t Inde x 513
Hu111n11 Resour ce Mn11nge 111 e11f: An Asin 11 Per spect i ve (Seco n d Ed itio n ) is a n As ian
adaptat io n of th e 11t h e di tio n of D ess le r 's bes t se llin g Amer ica n text Hu111n11Resource
Mn11nge111e11t.It is w ri tten to he lp st u de n ts ga in a co m pr eh e ns ive in trod u ction to
hu ma n reso ur ce ma n age m ent (H RM) fro m a uni q u e ly A s ian per sp ec tive . It is w ritt e n
in an easy-to -read and easy -t o-un der sta nd fo rm . Th e text h as bee n rev ise d wit h a
s tron g u se of v is u a l learn ing a id s, to impro ve s tude nt s' un der s ta n d in g o f esse ntia l
H RM co ncept s a n d tec hni q u es. T hi s book is for a ll stud e n ts of m anagement , not
ju st tho se w h o w ill so me d ay h old th e title H um a n Re so u rce Mana ger. Th is book
foc u ses on prac tical app lications that a ll m a nagers n eed to dea l wit h their HR-r e lated
respo n s ib ili ties . Thi s pu b lica tion is de s igned to prov ide acc u rate and a u thoritative
infor m at ion in regard to th e s ubjec t m a tt er covered, bu t it is not in tended to be a
so ur ce of lega l o r ot her prof ess ion a l adv ice for a ny purpo se .
Eve ry o ne in vo lved in creat in g th is book- not ju s t we as th e a u thor s, but a lso th e
m a n y peop le o n th e Pea rson ed itor ia l, sa les a nd product io n tea m s- is ve ry proud of
w h at we h ave ac hi eved. H1111in11Resour ce Mn11nge 111 e11t is one of the top se llin g books
in thi s m ark e t, a n d as yo u read it s tude n ts arou n d the world are us in g it in m a n y
la ng u ages, incl u d in g Fre n ch, Span ish, In do nes ian , Ru ss ian and bo th traditional
a n d s imp li fied C hi nese . Since its fir s t ed itio n, th is A s ian adaptat io n ha s ga in ed
p o p u la rity amo ng re ad e rs in So u th eas t a n d East As ia . The Asian adaptat ion reta in s
the ba sic fea tu res of Dess le r' s tex t. In add ition, it conta in s material s on HR practices
in East a nd So uth eas t As ian co un tr ies . Exa mp les from other countries su ch as In dia
a n d Austra lia ar e occa s iona lly me n tion e d. T h e A s ian exa mp les a re ba sed on st ud ies
don e b y academics a n d researchers. Th e or ig in a l so u rce s are g ive n at the e nd of
eac h ch ap te r.
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

In this edition, you will find that we have :

Refreshed and updated the content and presentation to make it more

lively and engaging for you .
Carefully selected interesting discussion questions , case studies and role-
play scenarios to give you a well-rounded learning experience.
Added new features such as "HR in Action" and "How It Works in Asia"
to show students how theory turns into practice with real life examples of
HRM .
Improved the instructor's resources to help make lesson planning that
much easier.
 A Lively and Engaging
Presentation
The d es ign of Human Resourc e Manag ement: A11 Asian Perspective (Second Edition) ha s been
carefully developed to hei ghten your st udent 's understanding and int e rest in H RM by
providin g th em w ith an engaging and clear learn in g ex p er ience.

Vis u a l le a rnin g aid s s u ch ,1~ ~pider

diagr a m s and flow c hart s m.:ike i l m u ch
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concept s by br e akin g comp lic<1lc d idc<1s
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 ~~A Well-Rounded
----------=
~~~ Lea ning Experience
Human Resourc e Management: An Aszan · · p erspect·ive (Second Editio n) ad ds new di111cn s1·ons to
stud yin g HRM by focusing on three areas: _experience, a ppli cation , and inte ractio n . Wi th _an
incr ease d array of inter es tin g di scu ssion _ques tions, activities, case studie s, and role-p lay scenari~:
for yo u to choose fro m, yo ur stude nt s w ill be able to under stand HRM fro m differ en t app ro ach
and p erspec tive s .

- ----------------------------"""-----~ ~..,_: : .::~\fl~' g C(llt?Ot

,,d~
--- - -
l • lntrOdl:ttton tv H ~n

Students can use the Disc uss ion Qu es tio ns ewd

provided at th e end of th e cha pt e r to
revise what they have lea rnt a nd DISCU~S! tcs to th e mJnagcmcnt process
thci r rec.:iII of key concepts . 1. Exp lain wha t HR management 1sJnd how h re 1a h all managers can use
1
2. Give exam ples of HRMconcepts and tcchntqu:!f~ ~anagcrs n,peut i'IC ad"antagt J
3. lll u matc the HRM respom.1b1ht1csof hnc and snvert their hum,,n ,t:..•ources into .'.'Ico

.. .... ..... ... . .. . .. ..... . .. .. . . .. . .. .. ... ..

4. Why 1sit impo rtant for compances t od,)Y to co
Explain ho w HR can contr ibu te to doing this . .......
.,,,Mo«e dlvenl
I
INTERACT lo outlines to show how uends lik~~ollc9corun~
ACTIVITY 1 Wo1klng Indivi dually or In groups, dev~ t ~e not ure of woik haveoffcctcd t h
tech nolog ical innovation, globalization, Jn d chJ ng c s
you arc anendlng now. Pcesent In class. ks A'ikthe HR man,gl
Ge t y our stud e nt s ac tive ly in vo lved in act HRm ;ma g crsor 5ome local ban · , goals.. Sack indl
ACTIVITY2 Working ind ividually or in groupS ,~~ ~tan resources , given t he ba n k's str at e<J1
learn in g about HRM th rough a var ie ty of how the y work as strateg ic partners t o manage
discuss the ccsponscs of th e diffc ,en t HR managers . d on t h .lt inte rv iew, writ
indi vidua l a nd gro up act iv iti es sp ecially Inter view J n HR ma n ager. Base .
ACTIVITY3 Working individually or In grou~s·. 1ding m ore competitive organizJtions .
d es ig n ed to he lp th em app ly th e ir shor t presentation regar ding HR's role today In us s thC:Asian \\'all$!
kn ow led ge and impro ve under s ta ndin g . . seve ral b usiness publica tions suc~t,at HRManagffl
ACTIVITY4 Working individually o r Ingro :s~~r;~21r contents , compile a list en t itled
Journal, Bu siness Week, Fortune to class. Bas

.........................................
Depa rtments Do Today: • • • • • • • •'

USEYOUR HR SKILLS! d ced to• '

tmenP . intro u
Is the re a Nee d 101 a HR Oopor · . f local bank. He was bein 9d h·rn tha t "S<>m
1
Nik beca me a new membe r of the boa rd of d ir~~t~;; ici: :he supervi'ior ,n charge t ~ hig h. Sho rt ly aft
em ployees in t he mai~ office. At one of t~~ ~~a;ai ned thai employee t u rnover waJ ~ian s t o b<' made, \ti
Application cases requir e was wrong ; but she d id not know wh at. S ncd With so ma ny cu 'it omers to see 3 n
emplo yee started work, anot her one res,g s ~hey came and went. . c ,nain office 0t'
analv/.:e and evaluate a litt le t ime t o work wi th the new empt~yces a lo yces directly .withou t info,m ing t 1:~ t o n~pl3ce the;,·
All branch sup ervisors hired th eir ow n em~rvi,;o r 1ried to find a suitab le emplt~,cm. H e ,vond ett<
scen~r io by app lying w hat they ha ve lea rnt. br a nches. Whenever there was a vacancy, t:: !~d found slm1lar problems in m,,nJ ~s ~ well -run institutiC
who had qui 1. Nik visited all the 22 br~nchhe should tak e . The bank was rcga ,de hou g ht abou t t h e O\l ti
Th i<-.aid<-. greater recal l of t he import a n t the main office should do or what acu on ti e pas t eig h t years . The more N,k t
HRVI principle~ and concepts . had grow n from 27 to 191 em ployee s d uu~g ;and the cause of the problem .
more puu led he became . t-te cou ld no t un ers

, . . l" and b,cJnches7

Que st ions . f the prob lems in the h an k s main offic ti n t h e m ain office7
O
1. What do you thin k ,s causmg some d b y set ting up ,Hi HA departmen . wou ld then beu r
I
2. Ooyou think th e p,~blem woul d beH~:;:par tment ca rry o ut ? What HA func tio"s
3. What specific func11ons~hould t~~ e,,;.1
out by ~uper visors and line man i 9 ·
 Preface

~ ~ Com ~

Continuing Case A CONTINU ING CASE IN EVERY CHAPTtR . ..

T h is book -long case s tud y he lp s student s

to look at a com p a n y' s l-lRM problem s
and iss u es from a w id e r, more ho lis tic
pcr s pcc li vc . Sl u de n ls lea rn h ovv to exa min e
p rob le m s in co nt ext of o ther re lated
iss ue s, a n d g.:iin a m o re co mprehensive
und e rsta nd ing of h ovv va rio u s aspect s of . . . . .. .. .. . . .... .. ...... ..
H RM tic in toget h e r. End notes
I
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~ER IENCE H R!
\-ias a Strateg ic Partner
~Se
~l;ll.Jrposeof this exercise is to id entify trends important to HR today , and to understand their impact on an
t'\iiatlon 's HR practices .
Th e experie n tial exercise is aimed at
1
~1red understanding
Oro ughly fam ihar with the material in th is chapter .
in c reas in g yo u r stude n ts' exposure
-._to set up the ex ercise
to rea lis ti c situatio n s in develop in g,
t)lvldc the class Into teams of thfee to four stud ents. p lan nin g and execut ing HR M
!\~ad this:
You are a strategic planning task force at your university. You must ident ify trends and how they will st rateg ies . In doi n g so, your students
affect the un iversity .1nd Its human resource needs. The team has already ldentifled a part ial list of
trends (see following tabl e ). wi ll gain a deeper and rnore personal
l~p and the list of "Critical Issues· and complete the other two columns In the table . und erstand in g of the different facets
~r esent your leam's con clusion s to the class.
\vhen th e teams have had time to di scuss the ir respon ses, consider the follow ing questions: of H RM.
~- Which environmenta l trend would have the greatest impact on the human resource needs of the
university?
b. What environmental change will be the most difficult for your HR group to manage?
t. Overall , how will thi s combination of tren ds affect yow univer sity?

Crttlca l Issues Effect on Existing Employees Pot ential HR Role(s)

(Example) (Example) (Example)
t . Distan ce learn ing Need for better computer skills Provide more train ing
technology
2. Government reduction In
funding to higher
education
3. Greater workforce diversity
4 . More International
students
11
S. High percentage of faculty
,, to ret ire over next decade
6 . A local large business is
developing its own
corporate university
7. Continu ing educat ion and
\ non -traditional degree
~ programs arc
Increasing In popularity
 TurningTheory into
Practice: New Features
One of any in s tructor s' key priorities is to make sur e that st ud en ts ar e we ll-pr e pa red for HRM
in the real wo rld. Human_ ~e source Mana~ern1:nt: An As ian Perspective (Seco nd Ed ition) h~5
coverage of key HRM polici es and laws in different As ian countri es. Together w ith " HR 111
Action", yo ur s tud ent s w ill be able to ga in va lu ab le ins ig ht into how HRM is pr acticed in rea l
life, in an As ian geog raphic al con tex t that is relev ant to th em.

Highlight s o f key HRM po lic ies and

e mplo y m e nt laws in As ia n regio ns like Hon g ~ ..,,,..,_,
'""''""""""d
'~
'° ""lm.J .... ~
Kong , Taiwa n, Ma lays ia, a nd Sing apo re wi ll ..,~ f,0,,I
......... , .... 1(:-.J
O ('f"'rf

he lp yo u r student s to gai n a hi g h ly rele va nt

under~ta n ding of the reg io n.

P.., I

Mulocul tu.ral Workfare• in Mauyiiiil

ln\1.&.t1-...i.d'r J. 'llTIIR,ll"ll~~1~ \ u&.i, Olhrr,.ffldudrQ.,-,c.~...t
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w,,n,~

. ·c
Rea l L'x a m ple ~ of 11RM ~trall' gic s a n ti po I 1c 1
--+ -- from in tl' rn ,1tion al ,ind A -,i.111()r g ,111i/, 1tio n s ar
fea tu red herL', ,ind p rm ·ide y o u r st u d cn'. s w itl
pra ctica l knowled ge pf h tn '\· 11IUvl i~ c.1rricd ot1
aro un d t lw v,·or ld .
 Preface

Improved
ctor's ort
A compreh e n s ive rang e of resource s is ava ilab le to h elp yo u wit h effec tive cour se preparation a nd
less o n p la nnin g.

Test Item File C rea tin g cu stom ize d tes ts for yo ur st u d e nt s is a b ree ze ,,v ith thi s test
ba nk o f ove r 1,800 mu ltip le ch o ice, tru e / fa lse, sh ort an swe r and
essay -t y p e qu es tio n s . Su gges ted an swe rs, difficu lty rati n gs, AACSB
ca ll-o u ts an d p age nun,b e r refere n ces a re includ ed for all qu estions.

·t .nstru~tor's
.... . manual T h e in s tructor 's manua l in clu des a cou rse planning guide and
ch apte r g ui des for eac h ch ap te r in the text. C h apt e r gu id es include
a ch ap te r o ut lin e, lec tur e not es, a n swe rs to di scu ss ion que s tion s,
add itio n a l d iscu ss io n qu es tion s, definiti on s to key term s, and
re fe rences to the fig ur es, table s, ca ses a nd PPT s in th e tex t. ln
add itio n, lin ks to th e video s in clud ed w ith the US ed ition of H 11111 n 11
Ri:.-;011rccMa11ng c111c11t a re ava ilab le for y o ur ea sy a ccess .

PowerPoint slides Bas ic HRM ou tlin es a nd key p oi nt s are brou g ht to g e th er in

a v is u a lly en gag in g yet co n ve n ie n t set of Pm ,ve rPoint s lid es
de sig n ed fo r easy cu sto mi sa tio n a nd sh a rin g .

Companion website A ll th e a bo ve in s tru cto r' s reso ur ces, as we ll as det ail ed co untr y -
sp ec ific HR M reg u latio ns, can foun d ea s ily o n our co n1pa nion
we bs ite: h ttp: // www. p ea rso ned -a s ia.com / dc ss lcr hrn.
BLANK
Ga ry Dess ler wo uld like to thank severa l peo pl e for their ass istance. Th is includ es fir st,
the faculty who rev iewed th e 11th and 10th ed ition s of H11111n11 Resource Mn11nge111 e11t:

Sco tt Boyai~ Univ ersity of South Alabama

Cy nthia F. Cohen, Uni ve rsity of South Florida
Larr y Dionn e, Rob ert Morris Coll ege
Kim Gowe 1~ Virginia Commonwea lth Univ ersity
G undar s Kaup in s, Boise State Uni ve rsity
P. C. Smith, Uni ve rsity of Tulsa

For th e seco nd ed ition of Hu111n11 A11 Asin11Perspective, the

Resource Mn11nge111e11t:
authors are also grateful for the use ful feedback from facu lty and other prof ess ional s
w ho ha ve rea d the Asian book. Durin g the man y yems of o ur associat ion w ith Pearson
Pre nti ce Hall , we ha ve a lways bee n able to count on the continu in g support of its
sta ff. We are espec ially indeb ted to Joy Tan and Monica Gupta for th e ir advic e and to
Iva n Lee a nd Lo Hwei Shan for th e ir hard work at the Singapore office.
We a lso w ish to acknowled ge the contribution of th e numerou s w rit ers of art icles
a nd research pap ers from which much inform a tion on Asia ha s bee n extracted.

Gary Dessler n11d Tn11Chwee H11at

 •
ie tives
After studying this chapter, you should be able
to do the following:
1. Explain what HRM is and how it relates to
the management pro cess.
2. Discuss how all managers can use HRM
concepts.
3. Compare the HR responsib ilities of line and
staff managers.
4. Explain the chang ing role of HR manag ers.
5. Discuss the chang ing environ ment of HRM.
6. Discuss HRM as a profession.
7. Explain how HR practices are influenced by
cultural and religiou s values.
8. Know the plan of this book.

Chapter l
Introduction to Human
Resource Management
fter China opened its market to foreign
A investors, many western hotels began
conducting business in big cities such as
Beijing and Shanghai.
Several years ago, the standard of service
atThe Portman Ritz-Carlton Hotel in Shanghai
was good but not excellent. Employee satis-
faction rating was only 75 percent, and the
hotel 's financial performance was average.
When The Ritz-Carlton Hotel Company took
over managing the hotel in January 1998,
its general manager decided to make The
Portman Ritz-Carlton a hotel that provides
excellent service. He knew that employees
part
-:....
:,
a
a.
C
....
0
-·
0
were very important if the hotel wanted to
improve its service."We are a service business,
:::,
and service comes only from people:' He
introduced The Ritz-Carlton Hotel Company's
human resource system. The effort produced
excellent results. In the past few years, The
Portman Ritz-Carlton, Shanghai was named
the "Best Employer in Asia:' Employee satis-
faction rating went up to 95 percent. 1
This short opening case serves as a brief
introduction to human resource management
(HRM). It shows the importance of human
resources in managing an excellent hotel.
The main emphasis of this book is on HRM.
 Part 1 u Introduction
Staff
Figure 1.1
Functions and Activities of a Manager
Human resource ----
management (HRM)
Policies and practice s on the
" people" or H R aspects of
manag em ent : recruit , train ,
appr aise, and reward .
Q.uickQ.uiz
0 Explain th e five functions of
management.
0 Are th ese funct ions equally
important ?
O Do managers of different
departm ents (e.g .. product ion,
marketing, finance) perform all the
five functions?
O Give at least eight examples of
HRMconcept s.
e Explain how managers can
use th em.
Human Resource Management At Work
What is Management?
As sho w n in Figure 1.1, mana ge rs perform five basic funct ions. They p lan, orga nize,
s taff, lea d, and control.
Control
Setstandards
Compareperformance O rganize
Takecorrective
action o Grveeach subordinate a specifictask
Plan o Delegateauthority
e Set goals and standards
o Develop rules and procedures t o Set up channels of communication
o Coordinatework of subordina
tes
Lead
o Get subordinatesto do the work
Recruit,select
, andtrainstaff
Evaluateperformance
Rewardstaff
of staff +- -+ () Maintain morale
e Motivatesubordinates
What is Human Resource Management?
In thi s book , we focus on one of these five functi ons- the staffin g or HRM fun ction.
HRM is the proce ss of recruitin g, training, ap pr aising, and rewa rdin g em plo yees.
This book provides you w ith concep ts that yo u need to perform the "peop le"
aspect s of your management job. They includ e the follow ing:
u Cond uct job analyses
u Plan manpo wer needs, recruit, and select job app licants
u Orient and train new emplo yees
u Manage wages, incenti ves, and benefits
u Appraise performance
u Interview, counse l, and discipline empl oyees
u Build em ployee commitment
u Und ersta nd em ploy ment laws
u Know emp loyee health and sa fety issues
u H andl e grievances and empl oyment relat ions.
Why is HRM Important to Managers?
Why are HRM concepts important to all managers? It is eas ier to answer this
question by listin g some of the p ersonn el mistakes yo u do not want to mak e whi le
managing a compan y.
For exa mpl e, you do ·not wa nt to:
u hir e the wro ng perso n for the job
u hav e a high empl oyee turnov er probl em
v find that yo ur peop le are not doing their be st
u wa ste tim e wit h useless interview s
u have your company sued for discrim inatory actions
u have your company fined for un safe pr actices
t-1 hav e so me emplo yees think that their sa la ries are un fair w hen compared to
those of others
u allow a lack of training to affect yo ur comp any' s performance
v com mit any unfai r emp loyme nt practices.
 1 ., Introduct ion to Human Resource Management

HRmanagersneed to understand
HRMconceptsto ensureeachstaff in a
Judge I, " Well. he is typing reoJ/9 quic,k/9 ..." companyis performing at the optimum
Judge .)., 'Yes . but does he k.now who! he 's .supposed to be doing?" level.

Thi s book will help yo u to avoid these mistakes. You can do everything else
righ t as a man age r- have exce llent plan s, d raw clea r orga niz ation char ts, set up
mod ern assembl y lines, and use th e best accountin g controls. But yo u ma y fail as
a mana ger becau se yo u h ave hir ed the wro ng peopl e or yo u do not know ho w to
motivate yo ur em ployees.
On the other hand, so me man age rs are successf ul eve n w ithout good pl ans or
controls. The y are successf ul becau se they hav e hir ed the right peopl e for the righ t
jobs. Th ey moti vate, apprai se, and dev elop these peop le.

Line and Staff Aspects of H RM

All manage rs are, to som e ex tent, HR managers. Th ey recruit , train, app raise, Authority - --- - ~
and rewa rd their empl oyees. Yet, m any compan ies also have a HR department The right co make decisions
w ith a HR manag er. Are the duti es of HR mana ge rs differ ent from those of "line" and give orders.
man age rs? We can answer this qu estio n by discus sing th e differe nce between line
Line authority
and s taff auth ority. The auth ority of managers
Authorit y is the right to mak e decision s and to tell oth ers what to d o. Th ere are co direct peopl e in their
two ty pes of auth or ity: line and staff. department .
Lin e authorit y g ives manager s the right to tell sub ord inat es what wor k they
shou ld d o. lt creates a sup erior -subordina te relation ship . Staff authorit y gives Staff authority
m anage rs th e right to adv ise other managers or empl oyees. It crea tes an adv isory Staff author ity gives the
relation shi p. Line manage rs hav e line authorit y. Staff mana gers hav e staff authority HR manager the right to
advise other mana gers or
but they also have line authorit y w ithin their own d epar tment s.
employees.
HR managers are sta ff manage rs. They assist and ad vise line mana gers in area s
like recru iting, trainin g, apprai sing, and rewa rdin g . Howeve1~ line man age rs also
h ave HR duti es.

Line Manager's HR Duties

Dealin g wit h peop le is an impor tan t part of every line manager's duties, from the
chief execu tive down to the supervi so rs. A line manager 's respo nsib ilities include
the follow ing:
v Place the right per so n on the right job
v Ori ent ate new empl oyees
v Train em ployees for jobs tha t are new to th em
v Improv e the job perfor mance of each per so n
 Part 1 u Introduction

u Develop good working relationship s amon g

employees
u Interpret the company's policies and proced ures
v Control costs
v Develop the abilities of each person
u Maintain employee morale
v Protect emp loyees' health and phys ical cond ition.
In small organizations, line manage rs may carry ou t all these
HR dutie s. But as the organization grows, line mana gers
need the spec ialized knowledge and adv ice of a separate HR
department.

HR Manager's Duties
The HR manag er carries out three distinct fun ctions as shown
in Figure 1.2:
u Line func tion
v Coordinati on function
v Staff function.

Lineau1hori1ygives !he manager 1he

right to issue orders.

HR Manager 's Functions

Line function Coord ination function Staff function

Direct activities in own department and
in service-relatedareas(e.g., cafeteria)
Havestaffauthority over other
departmentsin employment-related
issues
o Coordinates HR act ivities and HR-related Advise and assist CEO and other
issues managers to und erstand HR issues (e.g.
o (e.g., health and safety practices) hiring employee, comply with safety
rules)

Figure 1.2
HRManager'sFunctions

Size of HR Department
The size of the HR d epa rtment depe nds on the size of the comp any. A very large
comp any will have an organ ization chart like the one in Figure 1.3. It has a full
ran ge of specialists for each HR function. At the other extreme, the HR team for a
sma ll comp any may have only a few persons, as show n in Fig ure 1.4.
As shown in Table 1.1, in a large compa ny, there are various HR spec ialists
perfo rming specific duti es.

ManagerHuman Resource

Figure 1.4
HROrganization Chart (Small Company) Human resourcecoordinator _ _.__ Officer generalist
 Administrative
Operations
AndreaDickson
e.R 2 ~ ::o~-
~V"I OJ :C -n
Executive
VicePresident :f :x~ ~ S>c:::
~ ~ ~ ~~ ""'t
g Q.~ S' ~- ct>
v,3!::,01.0"' _.
Clifford
A.Brown ~ ~ t ~-g. w
InterimAssociateVicePresident ~0B
C""
~::,
-e =:. r,
HumanResources 2. g~ g ~
~ :--,-J~ ;:i
CalandraE.Jackson
SecretaryIll ':C
~-~a
-g_~ Q
::, 0

[~
CT ti
I'
CooperativeInitiative
\_I
HumanResourcesPolicy
ll
HumanResourcesDivision
'<
cl
~-g.
...
i:::
e Academic personnel Standards& StrategicPlanning 2.~
~.
tl Equalopportunity ~-
0
e Laborrelations ::,

e Payroll
0 Risk management

Jacqueline Foster i:

l
I
Brett Green I MarkHansknecht QueenF.McMiller Mildred 5. Jett
Manager Director ITManager Director Manager
Policy Develo
&Admin
pmentandAnalysis
istrativeSupport
TotalCompensation&Wellness
r I
SystemSupport and Data
Integrity
Employment
ServiceCenter Organization andEmployee
Development ... ¢

::,
,....
Medical, Dental & LifePlan I l HumanResources
Consulting
HRCommunications I ,, Administration
I

DeskTopSupport I ' Leadership Development 0

Q.
C
Personnel
TransactionAudit/
r ~
o·
Research
, PolicyDevelopment
and Coordination l
Retirement Plan
Administration l -- HRReport:__]
r-
Processing
-,___
Career and Professional
Development
_., 0
::,
,...,.
I

Compensation
l Support j
Technica
DataEntry I C
3
'- I Progression and Successi
on Q)
:::i
Collective
Bargaining
Support ! Administration
I
WebsiteManagemen
t I
• Call/Self
ServiceCenter ,_
Planning
1 -- ::::0
(D
V,
0
C
...,
Classification 1 -'-- OrganizationalDevelopment (')
(D
Administration
BudgetandAdministrative
Services I T
Project Managementof
IT Project
--
ClericalTesting
~
Consulting

I
___,,J
$
Q)
:J
Disability Management I
I On-LineHiring lr Technical Training and
"'-i
,
DJ
\0

l __J (D
HRDataIntegrity L_ Development 3
Initiatives
I ~
ProcessImprovement/
~ l
(D
,....
:::i

Workflow 1
Self-Service Tools/Employee
Development

__ j
 Part 1 u Introdu ction

Table 1.1 Duties of HR Specialists

DUTY JOB SCOPE
Training specialist 0 Plan, organize, and direct training
O Advise man agers on training
Job analyst 0 Collect informa t ion about jobs
O Prepare job descripti on
Recruiter o Collect informationabou t jobs
O Interview and recommend suitable cand idates
EEO coordinator e Investiga te EEOgrievances
e Ex amine HR practices fo r potent ial violat io ns
Compensation manager o Develop compensation p lans
o Handle employe e benefits prog ram
Employment relations e Advise managers on ERissues
specialist e Negotia te wi th unio ns

Cooperative Line and Staff HR Management:

Some Examples
As both line managers and HR managers have HR dut ies, it is usefu l to ask, "Exactly
which HR duties are carried out by line manage rs and which by the HR man ager?"
There is no standard rule that we can ap ply in all organizations, but there are some
commo n practices as shown in Figur e 1.5.

Line and Staff Line and Staff

Involvement in Recruiting Involvement in Training
-1, ,J;

0 Linemanagerdescribes thequalifications o Linemanagers describe what they expect

andskillsthatemployees needto fill the trainees to be able to do.
specificposition.
o HRteam designs a training program and
HRpeopletakeover.Theyinterview, helps line managers to administer,
short-listapplicants,
andadminister the
appropriate tests.Thentheyreferthe
bestapplicants to thelinemanagers.
Figure 1.5 Linemanagers interviewandselectthose
applicants whomtheywant.
line and StaffInvolvementin Recruiting

HR in ACTION

Quick Q,uiz
u Compa re the HR responsibilities of
line and staff (HR) managers.
u Why are line managers involved in
HR dut ies?
u Give ~ome examp les of how HR
and line managers coopera te in
these dutie s.
In its report, the Singapore Human Resources Institute (SHRI)focused on the new
roles of HR prof essionals. It has made the following sugg estions for the CEO of the
organizat ion:
0 Hold HR professionals accounta ble fo r outcomes
· 0 Communicate th e vision of the organization w ith HR dimens ion
e Introduce HR as a strateg ic partner
e Facilitate the multiple roles of HR.
Line managers also have a role to play. The Institute has made the following
sugg estions for lin e manage r?,
e Integrat e line managemen t with HR processes arid procedur es
o Put HR in the line management
o Enhanc e added value of HR roles in line management
E; Play a proactive role in employee relatio ns.-
 1 .., Introduction to Huma n Resource Ma nagement

The ChangingEnvironmentOf HRM

Cha nges are happ enin g eve ry d ay. HR mana gers mu st be ab le to respo nd to these Globalization -- -- ~
changes . The majo r changes or trend s are as follows: Th e te nd ency of companies
to extend sales, ow ner ship ,
v Glo bali zation
or production to other
v Techn o log ica l ad va nces countries abroad.
u Cha nges in th e natur e of wo rk
v Changes in workforce d emog raphi cs.

Globalization and Its Implication

G lobalization is the tend ency of comp anies to extend their sa les,
ow ne rship , or produc tion to new market s in other countri es .
Compa nies a re g loba lizing their product ion by taking adva ntage
of local faci lities. Toyo ta produc es cars in Chin a, Thail and , and
many oth er countri es . In 2000, Hai er became the firs t Chin ese
compan y to set up a facto ry in the Uni ted States to produce
refr ige rato rs .2
In 2004, Chin a's Leno vo paid US$ 1.75 billion to take over
IBM's Thinkpad personal computer bu siness . Pea rl Rive r Piano
Company prod uces 100,000 pianos a yea r and control s 40 pe rcent
of th e US market. Another compan y, Ga lan z, m akes mor e than
half of the wo rld 's mi crowave ove ns.3
Globalizatio n mean s m ore comp etition, and
m ore competit ion mean s more pre ss ur e
to be "wo rld-clas s" -t o lowe r costs, to make empl oyees Increasingglobalization meansthat
it is now commonfor companiesshih
mor e produ ctive, and to improve qua lity eve n productionto other countries.Here,
further . For bu siness ow ners, globa lizin g mea ns Toyota operatesa plant in India.
ben efits like reachin g mi llion s of new consum ers,
but it a lso po ses the thr ea t of facing new g lobal
compet itor s in th eir home coun trie s.

As a result of globalization,companiesfaceincreased
competition and
morepressureto be "world-class."

HR in ACTION

South Korean shipb uilder Hanj in Heavy Indu stries and Construction Corp will bu ild
the Philipp ines' bigg est shipy ard o n Mi ndanao Island in the southern part of the
- co untr y. The US$2 billion yard, to be called Misamis Oriental Shi pbuilding Com plex,
will cover 442 hectares.The Philippi nes has agg ressively courted Hanjin with generous
financial incentives such as du ty-free imp ort of capital equipmen t and tax holidays.
This.w ill be Hanjin's second shipyard in the Philippin es. It already has a US$1.68
billion yard at Subic Bay. Since it was set up in 2006, the Subic yard has received 3S
new bui ldi ng orde rs wor th US$3 billion:

Wipro Opens Cebu Out sou(cing Center

In 2007, Wipro, Ind ia's th ird biggest softwa re producer ope ned an outsourdng cente r
in the Phil ippines as higher costs and a shortage of do mestic tale nt bega n to ·d rive
lnoian IT co m panies to prospect ove rseas. The c.9m pany cited t he availabilit y of
skilled professionals and lowe r costs as among the ad vantages offe red by Cebu. The
center wil l provid e custo mer service as well as technical and financia l accounting
support to Wipro's g loba l ope rations. ·
 10 . Part 1 ° Introduction
Q.uic kQ.uiz
e What are the major trends in the
bu siness wor ld?
e Howdo these trendsaffect HR
managers?
Many blue-collar workers no
longer do hard physicallabor with
dangerousmachinerylike this. They
use computerizedmachines.
Human capital -----..
The knowledge, education,
skill, and expert ise of a
company's workers.
Strategi c plan
A strategic plan is the
company's plan to match
its internal strengt hs and
weaknesses with external
opportu nities and threats
to maintain a comp etitive
advantage.
Strategic HRM
Strategic HRM means
formulating HR policies
that produce employee
compe tencies and behaviors
that the compan y needs to
achieve its strategic aims.
Technological Advances
The Internet and information communi cation technology (ICT) has enabled
comp anies to become more competitive in the global marketplace. Few compani es
do business toda y the way they did a decade ago. Managers use pe rsonal digital
ass istant s (PDAs) or hand phones to communi cate with their office, and plan trips,
ma nage money, and do business online. Technology has also enabled compani es to
out source their non-cor e activities to other countri es where costs arc lower.
Changes in the Nature of Work
Technolo gy is also chang ing the natur e of work. Many factory jobs have been
autom ated .
Th ere is a sh ift from manufact uring jobs to service jobs. There is also a shift
to use "non-traditional" workers . They includ e those vvho hold multi ple
jobs, or who are part-time wor kers. In some companies, peop le wo rk und er
alternative work arran gements such as telewo rking and flexitime.
Changes in Worldorce Demographics
Workforce demograph ics are changing. In many cou ntri es, their vvorkforce
has become more di verse, that is, their emp loyees arc of d ifferent race,
religion, nationality, gende1~age, and cultur e.
Divers ity management is a big challenge for HR manage rs as we ll as line
mana ge rs in Asia. They have to deal with worke rs from man y coun tries.5
At const ructi on sites in Hong Kong and Singapore, there are wo rkers
from countr ies such as Banglades h, China, Ind ia, Indonesia, Pakistan, and
Thail and. At wo rksites in Thailand, it is comm on to find wo rkers from Laos,
Myanm ar, and Vietnam.
The Changing
RoleOf HRM
Today, trends in g lobalization, technological ad vances, and changes in the natu re
of work mean that HR managers have to take on new respo nsibilities. Empl oyers
now expect their HR functions to be more strategic.
What is Strategic Planning?
A s trate g ic p lan is the compa ny's plan to match its inte rnal st rengths and
weak nesses with externa l oppo rtuni ties and threats to maintain a compet itive
advantage. In strategic plannin g, comp anies ask themselves these que stion s:
t Where are we now as a business?
u Where do we wa nt to be?
How should we get there?
Manage rs then formu late specific depart ment strateg ies to take the company
from where it is now to where they wa nt it to be.
What is Strategic HRM?
Strat egic HRM means formulating HR policies and introducin g pract ices that
prod uce emp loyee competencies and behavi ors that the company need s to achieve
its strateg ic goa ls.
 1 I.;, Introduction to Human Resource Management

For example, at compa ni es like Ritz-Car lton, HR m ana ge rs team up w ith

top manager s in both designing and execu tin g their company strategie s. The
company' s focus on co mp et itiven ess implie s th at HR m a nager s mu st show res ult s
in mea surable te rm s . Top management is eve r keen on finding out, precise ly, how
the HR manager ' s p la ns can con tribut e to the com pan y's profit by impro ving
work ers' sk ills and pe rfor m a nce.

Creating High-Performance Work Systems

As w e noted above, global izat ion mean s m ore compet ition, a nd m ore comp e tit ion
mcc"lnsmore p res sur e to lower costs and to make emplo yees m ore product ive . Mo st
HR profe ss iona ls recogn ize the need to focus on perfo rm a nce.
We w ill see in thi s book that effecti ve HRM pract ices ca n imp rove performance
in thr ee main way s:
u Through the use o f technology
v Throu g h effect ive HR practice s (such as testin g a nd tra inin g)
l:j In trod u cing high-performance \Nork system s.

Outsourcing HR Activities
Mor e companie s are in sta lling comput er -based sy s tem s for imp rov in g H R Outsourcin g -----
To let outside vendors
productivity. Tech nology a lso m ake s it ea s ie r to out source HR activ ities to provide services .
specialist se rvice providers by g ivin g these provider s access to the co mp an y' s HR
in for m ati o n diltaba se. High-performance
Exa mpl es of so m e out so urc ed HR task s are payro ll, benefits, applicant testin g work system
a nd scree nin g, we lln ess programs, a nd e mpl oyee tra inin g. A high-pe rformance work
system is an integrated
set of hum an resource
High-Performance Work Systems managem ent pol icies and
pract ices that together
Successfu l compan ies do we ll part ly beca use th ey have hi gh-p erfo rn1anc e wo rk produce super ior em ployee
system s. A hi g h-perfo rm ance work sys tem is a n int egrated set of HRM policie s and performa nce.
practices that produce exce llent e mpl oye e performance.
While there is no fixed ru le about w hat compri ses hi gh- performance w ork
syste m s, m ost orga ni zat ion psycho log ists wo uld ag ree that they include th es e
p rac tices:6
u Empl oyme nt secur ity
u Se lect ive hiring
u Exten siv e tra ining
v Se lf-m ana ged teams and decentralized decision m aking
v Red uced stat u s disti nctions betwee n managers and wo rkers
u Information sh arin g among manager s
v Pay-for -p erfo rm ance rewards
u Empha sis on hig h-qua lity work.

HR in ACTION

In 2004, Singapo re ~ irlines retrenched 130 of its ITstaff and ano the r 70 from its finance
depar tment. The ITemployees were from its Data Center, End User Compute r Support,
and the Help Desk.These people were contracted out to IBM·to whom SIAhas ·
outsourced its _I
T infrastructure maintenance . SIA would write. off $ 10 million in one -off
costs associated with the staff redundancy exercise, but would benefit from expected
cost sayings of about $ 15 million a year.7
 Part 1 _, Introduction
Metr ics -- --------..
A set of quantitat ive
performance measures that
HR managers use to assess
their operat ions.
Quic kQuiz
O Whatare HRmetrics?
0 Whyarethese measurements
important to HR managers?
HR Scorecard - --- - Managers can lin k these metrics together to provide a mor
Measures the HR function's
effectiveness and efficiency
in prod ucing employee
behaviors needed to achieve
the company's strategic
goals.
Measuring HRM Team's Performance
In today 's performanc e-based environment, employers expect their H RM teams to
pro vide measur able proof of the effectiveness of their prog rams. For exam ple, they
want answers to these qu estions:
o How much will that new testing program redu ce the compan y emp loyee
turnover?
u How much more prod uctive will our employee s be if we introdu ce that new
training prog ram?
u How productive is our HR team, in terms of HR staff per empl oyee,
compared to our competi tors?
To evaluate, HR managers need the numbe rs. Specifically, they need quanti tative
performance measures (metr ics) (see Table1.2).
Table1.2 Some Sample HR Metr ics
What it Measures and
HR Metric How to Calculate How to Use it
Absence rate [(#days absent during month) Measures absenteeism
Shows whether company
(Average# of employees during month) has an absenteeism
X (# of workdays))X 100 problem
Cost per hire (Ad.+agency fees Costs involved in
+ employee referrals recruiting new employees
+ travelcosts of applicantand staff
+ relocationcosts
+ recruiter pay and benefits)
Dividedby
Numberof hires
Time to fill Total days elapsed to fillrequisition # days from job requisition
to new hire start date
Numberhired
HRexpenses HRexpenses
HRexpenses in relation to
Totaloperating expenses total expense of company
Sour ce: Adapt ed from Dessler, G. 2008 Human Resour ce M ana gement , 1led F"
·· 1gure 1-S, p. 16
Managing with HR Scorecard
. .
For mo st HRM activities one can map out the c e meanm gful p icture.
c ' ause-and-eff ti· k f I HR
activity, to the empl oyee behavior, and to the corn ec 111 s, rom t ,e
pany perfo 1·
For examp le, (for a hotel} the following met . ma nee.
performance of all three: ncs could he lp gauge the
u Increased use of incentive plan s
u Impro ved hotel employee customer service rat·
111
u More satisfied hot el guests 8S
v Imp roved hotel profit.
 1 u Introduct ion to Human Resource Management

The HR Scorecard is a concise simpl e mea sur ement sys tem. Compa nies
use it to meas ur e:
u HR activi ties (such as test ing, train ing, comp ensat ion, and safety)
v Emp loyee behavior s res ulting from these activities
u Orga niza tional outcomes of those empl oyee behaviors (such as
higher perform ance, and compan y profit).
The sco recard shows the causal link s betwee n the HR activit ies,
the emerge nt emplo yee beh av iors, and the resul ting ou tcome s and
performanc e. Chapter 2 shows how to create and use an HR Scorecard.

ProficienciesOf A HR Manager
Th e work of a HR manager toda y is cha llenging. As shown in Figure 1.6,
it requ ires quite a nu mber of profic iencie s.

Businessproficiency TheHRmanage
r's proficienc
ies
HR proficiency Skillsin strategicplanningproduction,
Knowledgeand skills in areas marketing.finance
suchasemployeeselection, ExplainHR activitiesin financialterms
training, andcompensation suchasretunon investment

r ~

Leadersh
ip proficiency Learningproficiency
Skillsto lead other manag
ers Learn and apply newtechnologies
and workasa group affectingthe professio
n
"-
...

Figure 1.6
Proficienc
iesof a HRManager

HR in ACTION
V From Backroorn to B!)ardroorn
HRprofessionalsin 9ther parts of the world have been sitting inside the boardroom
for years.To earn their seats next to other directors in the boardroom, HR
professionals must have the following competen~ies:8 •

e Prove HR'sworth by having more thiJn just technical know ledge . .

· 0 Show how HRcan help in terms of key business areas and demonstrate that HR
interventions produce a positive return on investment
o Make HRcont ributions measurable in the eyes of senior management. e.g., in
terms of reduction of turnover and reteQtion pf key staff .
o Gain in-depth understanding of the industry in general and the business in
particular. · ·
 Part 1 v Introduction

HRM And Professionalism

HR Certification
The grow ing comp lexity of the HR manage r's tas ks is causing HRiVIto become
more profe ssional. Every year, thousands of HR p ractitioners sit for exa minations
and seek profe ssional certification. These examinatio ns tes t know ledge on all
aspects of HRiVI, includ ing management practices, staff ing, HR deve lopm ent,
comp ensation, employment relations, health, and safe ty. Figur e 1.7 summ arizes
the body of know ledge in the SHRiVI(US) certi fication prog rc1m.

Module 1: Strategic Management Module 4: Compensation and Benefits

c, The Role of Human Resourcesin
Organizations
c., The Strategic Planning Process
c:, Scanning the External Environment
Organizational Structure and Internal
HR Partners
c, Measuring Human Resource
Effective ness
o Ethical Issues Affecting Human
Resources
u Human Resources and the Legislative
Environment
u Key Legislation
u Total Compensation and the Strateg ic
Focus of the Organ ization
c., Pay Administration
u Com pensation Systems
o Introduction to Benefit Programs
o Government -Manda ted Benefits
u Volunta ry Benefits
o Compensation and Benefit Programs for
Em ployees
u Evaluatin g the Total Compe nsation
System and Commu n icat ing It to
Employees

Module 2: Workforce Planning and Module 5: Employee and Labor Relation

Employment
o Key Legislation Affect ing Employee
Rights
u Key Legislation Affecting Privacy
and Consume r Protection
o Equal Employment Opportunity/
Affirmative Action
u Gender Discrimination and
Harassment in the Workplace
o Organ ization Staffing Requirements
o Job Analysis and Documentat ion
o Recruitment
o Flexible Staffing
o Selection
& Employment Practices
o Organizational Exit
o Employee Records Management
u Key Legislation Affecting Employee and
Labor Relations
o Employee Relations and Organ izationa l
Culture
o Employ ee Involvement Strateg ies
o Positive Employ ee Relat ions
u Work Rules
o Effec tive Communication of Laws,
Regulat ions, and Organizationa l Policies
u Discipline and Formal Complai nt
Resolution
o Union Organizing
u Unfair Labor Practices
o Collec t ive Bargaining
u Strikes and Secondary Boycott s
v Public-Sector Labor Relat ions
o Internat iona l Employee and Labor
Relations

Module 3: Human Resource Module 6: Occupational Health, Safety,

Development and Security
o Key Legislation e Key Legislation
e Human Resource Developmen t and the o Safety
Organization o Health
o Adult Learning and Mot ivat ion o Security
o Assessment of HRD Needs
u HRD Progress Design and Development
Figure 1.7 o HRD Program Implementat ion
2004 SHRM Learning System o Evaluating HRD Effectiveness
J•/lodulr Descriptions o Career Development
,ource· Reprinted by perm1ss1on o Developing Leaders
1f '>onery f01 Human Resource u Organizational Development Initiatives
Man;igemem via Copy right u Performance Manageme nt
l Je;irantP r en1e1
 1 "' Introduction to Human Resource Ma nagement

Is H R a Profession?
By s trict d efiniti on, doctors, de n tists, archit ects, lawye rs, accoun tant s, and
seve ral o th ers are recog ni zed as prof ess ion als . There are laws th at specify th eir
qu alificat ions and gove rn th eir pr actices. These prof ess ional s have formed their
ow n in stitut es to ensur e compli ance of the law, and formu lated code of ethic s to
g uid e the ir me mb ers. They set rules and reg ul ation s and take di sciplinar y ac tio n
aga ins t dev ian ts.
Is HR a prof ess ion? The answe r to this qu estion w ill become clea rer if we look
at the following se t o f cr iteria in Figure 1.8 and comp are them wit h th ose of ot her
prof ess ions.9

Criteria for a Profession

J J
Contents
o Is there a defined scope of activities
in HRM?
o Is there a specialized pool of knowledge
or set of professional skills?
o Is th ere uniformity in th e practices of
HR to create some sense of identity?
l
Support Contribution
o Do practitioners supp ort the professional o What is the major contr ibution of th e
institute by becoming members? profession to society?
o Is there exchange of ideas or sharing of o Is the profession accepted by related
experience among members? professions?
o Is there a code of conduct or rules? o Can the profession influence national policies?
o !s the profession responding to changes
o Can the institute enforce discipline rules?
In SOClety?
o Is th e institute upgrading skills of members?
o Is the institute researching new products?

Figure 1.8
Criteriafor a Profession

Professional Institutes
Membe rship in many pro fess ional inst itu tes beg ins w ith shared edu cational
quali ficat ions an d exa mina tions. Howeve 1~ in some cases, members hip is also open
to those w ith man y yea rs of professio nal ex per ience.
In ad dition to trainin g and educati on, a pro fess ional institute shou ld
pro v ide u p-to -d ate kn ow ledge and in form ation to its memb ers. This is don e
throu g h news letters, journ als, sur vey repo rts, con du ctin g cour ses, and holdin g
conferences. A national profess ional institut e sh ould also m aint ain link s w ith
simil ar orga n izat ions in other cou n tries. It shou ld p lay an active role in regional
assoc iat ions and tak e part in intern ational con ferences . HR Today on page 27
prov ides d eta iled in formation abou t HR prof ess ional inst itutes in th e Asia Pacific .

Qualification and Level of Membership

A profe ssional institu te should also have the authority to specify the qua lification of
its member s . For exampl e, member shi p of the Aust ra lian Human Resources Institute
(AHRJ, formerly the Institute of Personn el Ma nage ment of Austra lia or IPMA) is only
ava ilab le to persons who have compl eted an accred ited deg ree or post-degree course.
Persons who have compl eted a certificate, associate dip loma, or dipl oma cour se w ill
be eligib le for sub-prof essional memb ersh ip in the grade of Senior Assoc iate (subject
to th e comp letion of the expe rience requirements). 10
In Asia, most HR profess ional institut es accept persons w ith in terest in HR to
join as assoc iate or ord ina ry memb ers. Fellows are me mb ers w ho have achieved
en, inence or have mad e di st inguished contributi on to HR M. Hono rary life
memb ers arc pe rso ns w ho have rendere d di stingui shed se rvic e to the institu te and
the communit y.
: .{
',,_'.; 16 Part 1 " Introduction
.j, -.. . . ...

Worl<place Challenge for the HR Professionals

HR professio nals hav e a spec ial respo nsibility to balance the needs of the company
w ith the intere sts of emplo yees. They also have to promot e cultur a l va lues at the
workp lace. They mu st ne~o r~ with co1~1m~:1it y gro up s and be ab le to exp lain how
HR pro fessionals are contnbutm g to society.

HR And CulturalValues
HR practices in a company are influence~ by the cul~ura~ valu~s of the country in
which it operates. for exam~le, many Asian com_ra111 cs (1nclud111g _those in China,
Japan , and Korea) have been mfluenc ed by the Chmcse sage Con fucius (55·1-479 BC)
and his teachin gs . . .
Confuc ian values include harm o111 ous mter personal relationship s, mutual
13
obligations, hie rarchy, and social order Y·
In South Korea, Confucian values guid e da ily life, w ith the soc ia l mor es and
mod es of conduct centered on family life, hierarchy, seniority, and traditi ons.1-1
Jn Taiwan, the Confu cian values of hard_work, family, and kinship a re imp ortant
at the workp lace. They influence the des ign of HRM sys tem s. For exa mpl e, the
valu e of har mon y encoura ges tea':'work and part icipation in p rog rams such as
quali ty circles. It promot es cooperation betwee n manage ment and the emplo yees.is

Confucianvaluesemphasize
harmoniousinterpersonal
relationships,mutual obligations,
hierarchy,and socialorder.
Sun Tzu's Art of War
The most popular anc ient manag ement book read by mana ge rs in Japan and other
East Asian countri es is Sun Tzu's Art of War, wr itten 2,500 yea rs ago by a ge ne ral in
anc ien t Chin a. His war strategi es, exp lained in 13 short chapt ers, have been app lied
in bu siness by Japanese compan ies to expand th eir over seas ma rke ts. The book
explained theories of organ izat ion, plannin g, lead ership , and stra teg ies .16· 17
Human factors are imp ortant in Sun Tzu's w innin g strateg ies. He emph asized
the importan ce of training, disciplin e, and loyalty of the soldiers. An a rmy that has a
set of strin gent rules and admini sters reward and puni shm ent in an enlightened way
w ill boost mor ale amon g the men. When the men are puni shed before th eir loya lty
is secured, they will become di sobedi ent. When they are disobedient , it is d ifficu lt to
comm and them. If the loyalty of the men is secured but puni shm en ts are not fair, this
w ill res ult in low mora le amo ng the men.18
 1 " Introduction to Hum an Resource Management

Han Fei Tzu: Reward and Punishment

A lesse r known ancient m ana gement thinker was Han Fei Tzu (280-333 BC). His
55-chapter book was written for imperia l rulers, emph as izing management by
st rict ru les and contro l. He sugge sted that a leader should:
u Find talen ted subordinate s
v Set up a syste m of rules
u Exp lain these rules to subordinates
u Mot ivate them w ith rewa rd and puni shm ent
u Str ictly adm inister reward and puni shment.
In his ch apt er on "Way of th e Leader" Han Fei Tzu su mmari zes the role of a
leader as show n in Figure 1.9.

Receive propo sals Punish those who

from subordinates fail to pe rform Figure 1.9
Roleof a Leade
r

In other chapter s, Han Fei Tzu recomme nd ed meritocracy and cautioned against
nepoti sm. If a person merit s a reward, no matt er how far he may be aw ay from the
leader in the hierarch y, he should be reward ed. If a person mak es a mistake, no
matter how close he is to the leader, he mu st be punished. With such a sys tem, the
former will do his best and the latter will not be comp lacent. 19

HR and Religious Values

Manager s in a workplace with emplo yees believ ing in d ifferent religions shou ld
be aware of their relig ious val ue s. For exampl e, people in Thai land are influ enced
by their Buddhist approach to life. As exp lained by Siengthai and Vadhana sindhu
Buddh ists hav e to consid er the following facto rs:20
u Self-realization (know yo ur stren gths an d w ea kne sses, and who you are)
u Knowing ot hers (know whom you are d ea ling with and ho w to deal w ith
them)
v Causa lity (know th e cause and effect of what yo u are doin g)
u Appropriate tim e and place (know the right time and pl ace to dea l with
problems)
v Potential (know you r ab ility and lim itation).

HR practices a re affected by certain un ique Thai cultura l values such as:21

u kre11g jni (social harmo ny)
v bu11k/n111 (exchange of favor s)
v jni-ye11-ye11 (tak e-it-easy)
v 111aipen mi (never mind)
u sm111k (fun)
1,a111-jni
(thoughtfu l, ge nerou s, and kind).
 Part 1 v Introduction

In Ind ones ia a nd Ma lays ia, ma ny peop le a re Mu slim s. As ex pl a ined by Tayeb,

th e ir relig io n Isla m e m ph as izes th at the nat ur e o f the ir re lat ionsh ip is ega litar ia n
a n d ur ges lea d ers to co nsult th eir followe rs in m anc1g in g th e ir affa irs. It m ea ns
tha t a t th e workp lace, th ere should be consul ta ti ve dec isio n-m a kin g c1nd a di ffu sed
p ower st ru ctu re. With va lues such as se lf-d iscip lin e, ho nesty, c1n d loyc1lty, m a nage rs
sh oul d trus t the ir sub ordin a tes ' jud gm ent a nd in teg rit y. T he re s ho ul d be teamwo rk
an d m ut u a l s u p port .22

Multicultural Workforce in Malaysia

ln Ma lays ia, the do min ant ethni c group is Malay. O th ers include C hi nese, Ind ian, and
Eur as ian . Th e Ma lay cultur e is a coop erative society based on kn111po11g (v illage) and
goto11groyo11g (mutu al help) va lues. The un ity of the Ma lay communi ty rests on nrlnt
resn111 (social custo ms) whi ch includ e goto11g royo11g,and the concep t of 1111111,n/1
(Islamic
re ligious communi ty) and mnlu (self-res pect). 23

So m e com m on cul tur a l va lues have also bee n id entifi ed in a mul ticul tur a l
Mal ays ian wor kfo rce. We ca n see th ese in Table 1.3.

Table 1.3 Malaysian Cultural Values

Cultural Value --~-- Influence on Behaviour
Collectivity Malaysians are group-oriented . They desire a strong suppor t system in the form of a "big
brother " or "big sister"from whom they can seek advice.
Relatio nship-oriented Malaysians focus on relationship s more than the task. Relationships are often personalized,
based on an unw ritte rn code governing relatio ns, differentiat ing peers, superiors, and
subord inates.
Respect for elders and auth ority Malaysias respect their elders and people in positions of author ity
Loyalty and care Em ployees are loyal to their companies. In return, managers have a moral obl igatio n to
care for the subordinates.
Hierarchy Malaysians respect social hierarchy and status. Honorifics are used for indi vidua ls w ith
aut hority and status.
Religion Most Malaysiansidentify with a specific religion-a belief in a Supreme Being.
Contentme nt is obtaine d thro ugh religious and spiritual pursuits. Malaysians tend to be in
harmony w ith natu re.Their behaviour tends to be reactive rather than proactive.
Harmony Malaysians respect harmony an avoid open conflict. Negative opin ions are seldom
expressed in publ ic.
Face Preserving another person'sdig nity (or face) is co nsidered good manners. A person should
not be embarrassedor humiliated in pub lic.
Source: Asma Abdu llah 1992 . 11- 14.
Sim ila r views have bee n exp resse d by anothe r res ea rche r w h o su gge sts th e
follow in g g uid e line s (see Figure 1.10) for m a nage rs to m oti va te a mul ticultur al
wor kforce:

Understandthe
person

Promotefeelings ~
of togetherness ~ Buildtrust

Be humbleand Providerecognition
Figure 1.10 and reward
Guidelines to Motivate a Multicultural Workforce apologetic
 1 " Introduction to Human Resource Management

In Malaysia, the dominance of lslam poses cultur al challenges for non-Islamic

ethni c groups in the workforce. Manage rs mu st know how each group is motivated
and hm-v the values of each group affect business relationships.24
In a mu lticultur al wo rkpl ace, manage rs shou ld be awa re of sensitivities that are
specific to each e thni c group. For exampl e, Muslims do no t ea t pork and w ill not
use utensils tha t have been contaminated by pork. Even for ot her types of meat,
they mu st be halal, or pr epared in an acceptab le Mt'.sli1~ vvay. Most Indi ans are
Hindu s and do not eat beef and some may be vegeta rian.

Managers shouldbe awareof ethnic

sensitivit iesin the workplace.For
example, Muslimswill not useutensils
that havebeencontaminatedbypork.

National Values
In some countr ies, peop le are guid ed by a set of na tional values. For examp le,
Indo nesia has Pn11casiln, Malaysia has Ruku11
egnrn, and Singapor e has its Na tional
Shar ed Values (see Table 1.4).

Tabl e 1.4 National Values in some Southea st Asian Countri es

Indonesia (Poncasilo) e Beliefs in the one Supreme Being

o Just and civilized humanity
a Nationalism
o Democracy
e Social justice

Malaysia (Rekunegoro) e Belief in a Supreme Being

o Loyal to Kingand country
o Upholding the Constitution
e Ruleof law
e Good Behavior and Moralty

Singapore (National Shared o Nation before community and society

Values) before self
o Family as the basic unit of society
o Community support and respect for the
individual
e Consensus, not conflict
o Racial and religious harmony
Part 1 ~ Introduction

The PlanOf This Book

Basic Themes of this Book
In this boo k, we use several themes to emph as ize im portant iss u es, and to pro v ide
continuit y from chap ter to chapter.
u HR m anage ment is the responsibility of eve ry m anage r-n ot ju st those
of HR man age rs. Thi s book emph asi zes on p rac tica l m aterial th at you
as a manager w ill need to perform yo ur day-to -day man age ment work.
In fact, even if you a re a sup erviso r in a large com pany faced w ith so me pe rso nn el
task (like interview ing a job cand idate), yo u may find that yo u nee d more
support than you r HR d epartme nt provid es. We have therefo re includ ed, in each
chapter, s pecial HR in ACTION bo xed featu res. These show yo u in
pr act ical term s h ow the managers or s mall bu siness ow ne rs wh o arc "o n their
ow n" can accomp lish so me of the chapt er 's key empl oyee- related tasks .
u Int ense comp etit ion today mea ns HR manag ers mu st pr ove that th ey
can contr ibut e in meas urabl e terms. Chap ter 3 exp lains how to u se the
HR Scoreca rd to measure perform ance. Each chapt er includ es a metrics
or ient ed case stud y using Hotel Int erational to se t the s tage
ti All m anage rs are invo lved in compan y s trat eg ies. Thi s boo k the refo re
di scusses s trategic HR planning fully in Chap ter 3, and in end -of- chapt e r Hotel
In ternation al cases.

Table 1.5 Chapte r Content Overview

Part Chapter Content

1 Int rodu ction 1 Introduct ion to o The manager's HR responsib ilities

HRM o Global and compe titive trends
o How managers use tech nology and
HR measurement
a Professional institutes
e HR and cultural values
2 Equal Opportunity e Equal opport un ity laws as they relate
and the Law to HRM activities
3 Strategic HRM and e Strategic planning
the HRScorecard e High-pe rformance wo rk system
o Strategic HR
e The HR Scorecard

2 Recruitme nt 4 Job Analysis o How to analyze a job

an d Place me nt e How to de term ine th e HR
requirements of the job
o Specific duties and responsibili ties of
the j ob
5 Personnel Planning e HR plann ing and planning systems
and Recruiting a Determi ning w hat kind of people to
recruit
6 Employee Testing o Selection techniques fo r hiring t he
and Selection right people
7 Interview ing o Interview techniq ues for hiring the
Candidates right pe rson for the right j ob
 1 u Introduction to Human Resource Management

Part Chapter Content

3 Training and 8 Training and e Provide trainin g so that emplo yees

Development Developing have the necessary know ledge
Employees and skills
a Concepts and tech niqu es for
develop ing capable emp loyees,
managers, and organizations
9 Performance e Techniqu es to appra ise performance
Management and e Techniques to link performance w ith
Ap praisal the organization 's goals
10 Managing Career e Career planning and promotion to
help emp loyees to achieve their
pot ential

4 Compensat ion 11 Establishing o Develop equita ble pay p lans

Strategic
Pay Plans
12 Pay-for o Pay-for-perfor mance plans such as
Performance and financial incentives, merit pay,
Financ ial Incentives and incentives that lin k performance
to pay
13 Benefits and e Provide benefits to show that the
Services compa ny treats emp loyees as long
term investments
o Provide services and welfare programs

5 Employ ee 14 Ethics, Justice, and o Ensure ethical and fair treatment

Relati on s FairTreatment through discipline, grievance, and
career management process.
15 Employment o Concepts and techniques about
Relations and relations between unions and
Collective management
Bargaining o Deal with unions and negotiate
collective agreement
o Managing the collective agreement
and the gr ievance process
16 Employee Safety o Know the causes of accidents
and Health o Maintain a safe workplace
o Know the laws about employee
safety and health
17 Managing Global o Know the growing importance of
Human Resources internat ional business
e HR's role in managing the personnel
side of multinational operations
 Part 1 .., Introducti on

Topics are Interrelated

When u sing thi s book, read ers should know that the seve n lec n chapter s are
int er related. Each topic int eract s with and affect s the others, and a ll sh o uld fit
w ith the emp loyer' s strategic plan . Figure 1.11 summ arizes how th e cha p ter s are
int errelated.
Figure 1.11 CHAPTER
3
Strategyand the BasicHRM Process
Compa ny's Strategic Plan
> o What business are you in? <

r 1
o On what basis will you compete?

Develop Recruit
o How do you plan to expand?

"'
Interview
~
Train
! Appraise Reward
personnel plans candidates and select employees employees employees
and job employees basedon job
descriptions requirements
u u 0 u
Chapter 4 Chapter 5 Chapters 6, 7 Chapter 8 Chapters 9, 10 Chapt ers 11, 12, 13

t ~ ~
_j
L Conform to ethical standards and EEOC and other HR-related laws
CHAPTERS
2, 14,15, 16

CHAPTER SUMMARY
1. All managers perform five basic functions - plan, organize , staff, lead, and control.
2. HRM invol ves recruiting, selecting, training, compensating, appraising, and developi ng emp loyees.

\ 3.
4.
HR m anagement is a part of every manager's responsibi lit ies.
The HR department carries out four main functions
t:1 exert line authority in their department and staff authority in other departments in the company
c, ensure that the company's HR objectives and po licies are coordinated and implemented
1::1 provid e various staff services to line management
t:1 partner w ith the CEO in designing the company's strategy .

5. Globalization and technology innovation mean that companies must be more competitive.
6. Oth er tr ends are wo rkforce diversity and changes in the nature of work
7. Management expects the HR depa rtment to provide measurable evidence rega rding its effective ness.

KEY TERMS
authority , 5 management process, 21
cultural values, 16 metrics, 12
globalization , 9 mult i-cultura l workforce, 18
Han Fei Tzu, 17 outsourc ing, 11
high-performance w ork system, 11 prof essional institute, 15
HR Scorecard, 12 staff authority, 5
human capita l, 1O staff manager, 5
human resource management (HRM), 4 strategic human resou rce management, 10
line authority, 5 strategic plan , 10
lin e manager , 5

[
SunTzu'sArtofWar , 16
 1 u Introduction to Human ResourceManagement

DISCUSS!
1. Exp lain w hat HR management is and ho w it relat es to the management process.
2. Give examp les of HRM concepts and techni q ues th at all managers can use.
3. Illustrate the HRM responsibilities of line and staff managers.
4. Why is it important for companies toda y to convert their human resources int o a competitive adva ntag e?
Exp lain ho w HR can contribute to doing this .

• •••• ••••••••••••••••••••••••••••••• ••••••••••••• •••

INTERACT !
ACTIVITY 1 Working individually or in groups, develop outlines to show how trend s like wo rkfor ce diversity,
techno logica l inno vation , globalization, and changes in the natur e of wo rk have affected the col lege or uni ve rsity
you are attending now. Present in class.

ACTIVITY 2 Working individually or in grou ps, contact HR managers of some loca l banks. Ask the HR managers
how they work as strategi c partners to manage human resources, given the bank's strategic goals. Back in class,
di scuss the responses of th e diff erent HR managers.

ACTIVITY 3 Working indi v idu ally or in groups, inter view an HR manager. Based on that int erv iew, w rit e a
short presentation regarding HR's role today in bui lding more compet it ive organizations.

ACTIVITY 4 Working individually or in groups, bring severa l business publi cat ions such as the Asian Wall Street
Journal, Business Week, Fortun e to class. Based on their contents, compile a list ent itl ed "What HR Managers and
Departments Do Today."

••••••••••••••••••••••••••••••••••••••••••••••••••••
USE YOUR HR SKILLS!
Is there a Need for a HR Department?
Nik became a new memb er of the board of directors for a local bank. He was being introduced to all t he
emp loyees in the mai n office . At o ne of th e branch offices, the sup ervisor in charge told him that "somet hin g
was wrong;' but she did not know w hat. She expla in ed t hat empl oyee turn ove r was too hi gh. Shortly afte r one
empl oyee started work, anot her on e resigned . With so many customers to see and lo ans to be made , she had
littl e t ime to work wit h the new emp loyees as they came and we nt.
All branc h superv isors hired their own employees directly w ith out informin g th e main office or other
b ranches . Wheneve r there was a vaca ncy, the supervisor t ried to find a suitable emp loyee to repl ace the worke r
who had quit. Nik v isited all th e 22 branches and found simil ar problems in many of them. He wo ndered what
the main office should do or w hat act ion he should take . Th e bank was regarded as a we ll-ru n institut io n that
had grown from 27 to 191 employees during th e past eight years. The m ore Nik thought abo ut th e matter, the
more puzzled he became. He cou ld not und erstan d the cause of the problem .

Questions
1. What do yo u think is causing some of the problems in the bank 's main off ice and branches?
2 . Do you think the prob lem wou ld be so lved by sett in g up an HR department in the main off ice?
3 . Wh at spec ifi c funct ions shou ld th e HR department carry ou t ? What HR function s w o uld th en be carri ed
out by supe rv isors and lin e managers?

(Source: Claude S. George, 1985. Adapted by permission of Prentice Hall)

 Part 1 u Introduction

EXPERIENCEHR!
HRM as a Strategic Partner
Purpose
The purpose of this exerc ise is to identify trends important to HR today, and to understand their im pact on an
organization's HR practices.

Required understanding
Be thoroughly fam ili ar with the material in this chapter.

How to set up the exercise

1. Divide the class into teams of three to four students.
2. Read this:
You are a strategic planning task force at you r university. You must identify trends and how they will
affect the university and its human resou rce needs. The team has already identified a partia l list of
tr ends (see following tab le).
3. Expand the li st of "Critical Issues" and complete the other two column s in the table.
4. Present your team 's conc lusions to the class.
5 . When the teams have had time to discuss their responses, consider the following question s:
a. Wh ich environmenta l trend wou ld have the greatest impact on the human resource needs of the
university?
b. What env ironm enta l change wi ll be the most difficult for your HR group to manage?
c. Overall, how w ill this comb inati o n of trends affect your university?

Critical Issues Effect on Existing Employees Potential HR Role(s)

(Examp le) (Exampl e) (Example)
1. Distance learning Need for better computer skills Provide more training
technology
2. Government red uction in
funding to higher
education
3. Greater workforce div ersity
4. More int ernation al
students
5. High percentage of fac ulty
to retire ove r next d ecade
6. A lo cal large business is
dev eloping its own
corporate university
7. Continuing educat ion and
non -t raditional deg ree
programs are
in creasing in popularity
 1 v Introduction to Human ResourceManagement

- ~n Laundry Company

A CONTINUING CASEIN EVERYCHAPTER

•••
Introduct ion
The main theme of this book is that HR management-activities like recruiting, selecting, training, and
rewarding employees-is not just the job of some cent ral HR department. It is also a job that every
manager must do. To illustrate the lin e manager's HR role, throughout this book we use a continuing case,
based on an actual sma ll business. Each case will show how the owner -manager Jak Ko faces and solves
HR problems by app lying the concepts discussed in that chapter. Here is the background information
you need to answer questions that arise in subsequent chapters.

KK's Consu lting Manager

Jen Ko graduated from City University in 2005. After cons id ering several job offers, she decided to go
into business with her father , Jak Ko. KK's Founder Jak Ko opened his first laundry store in 1995 and had
expanded to six by 2005. The main business was drycleaning and pressing of clothes. Each store had its own
on-site manager and about seven emp loyees.
Jen's understanding with her fath er was that as KK's Consulting Manager, she would serve as a
troubleshooter or adviser with the aim of both learning the business and introdu cing modern
management co ncepts for solving the company 's problems.

Questions
1. Make a list of fiv e specific HR prob lems yo u think KK Laundry had to deal with.
2. Wha t wou ld you do fir st if you we re Jen Ko?
3. Compare your answers with those of another student.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Endnotes
1. Yeung, Arthur. 2006. "Setting Up for Success:How
the Portman Ritz-Carlton Hotel Gets the Best From
its Peopl e:·Human Resource Management, 45, no. 2:
67-75.
2. Fitzpatrick, Paul. 2004. "Haier's Human Resource
Strategy." Human Capital October, p. 31-32.
3 Williamson, Peter. 2007. "Dragons at t he Door: A
HR Response to China's Emerging Multinationals :'
July, World Federation of Personnel Management
Associations (WFPMA).(Reprint ed in Human Cap ital ,
November-December 2007, 30-32.)
4. Almazan, Alec. 2008. "Hanjin to Invest US$2 billion
in Philipp ines' Biggest Shipyard:' Straits Times
January 17, p. 19.
5. Debrah, Yaw and Budhwar, Pawan.2004. "HRM
Challenges in the Asia Pacific Region: Agenda
for Future Research and Policy:•In Managing Human
Resources in Asia-Pacific, ed. Pawan S.Budhwar,
269-79. London: Routledge.
6. Zacharatos, Anthea et al. 2005. "High Performan ce
Work Systems and Occupation al Safety:·Journal of
Applied Psychology, 90, no. 1: 77-93.
7. Sreenivasan, Ven. 2004. "SIAto Shed 130 IT job s as It
Outsources Work:' Business Times September 25.
8. Viswanathan, Meenakshi, 2006. "Earnin g a Seat
at the Executive Table:· Human Resources,
October, 24-27
9. Tan, Chwee Huat. 1982."Human Resource
Management in a Changing Environment:
Professionalism in Personnel Management. "
Singapore Inst itute of Personnel Management Review
May-June, 10-11.
10. Clark, R. 1991.Australian Hum an Resou rces
Management. Sydney: McGraw Hill.
11. Kochan, Thomas. 2004. "Restoring Trust in the
Human Resource Management Profession:' Asia
Pacific Journal of Human Resources 42, no. 2: 132-46 .
Part 1 v Introduction
12. Oh, Tai. 1983. "A Comparat ive Study of the Influ ence
o f Confucianism on Jap an ese, Korean and Ch inese
Managem ent Practices :' Proc eed ings of th e
Aca demy of Int ernational Busin ess, Asia-Pacifi c
Dimen sion s of Int ernationa l Busin ess, Dece mb er
18- 22, Hon o lulu .
13. Haley, George, Tan , Chin Tion g, and Hailey, Usha.
1998. New Asian Emperors. Oxfo rd: Butterw o rth
H ei nemann .
14 . Rowle y, Chris and Bae, Johng seok. 2003. "Cultur e
and Manag e m ent in South Korea:· In Culture and
Management in Asia, ed. M. Warner, 187-2 09.
London: Routl edge Cur zon.
15. Wu , Pei-Chua n. 2004. "H RM i n Taiwa n '.' In Manag ing
Human Resources in Asia-Pacific, ed. Pawan S.
Bu dh war, 93- 11 2. London: Routledge.
16. Wee, Chow Hou , Lee, Khai Sheang , and Hidajat ,
Barn b ang. 199 1. Sun Tzu: War and Managem ent.
Singapore: Addi so n Wesley.
17. Foo , Check Teck a nd Grinye r, Peter. 1995. Sun Tzu on
Management. Sin gapo re: Butt erwo rth Hein emann
Asia.
18. Wee, Chow Hou, Lee, Khai Sheang , and Hidaj at,
Barn b a ng. 199 1. Sun Tzu: War a nd Management.
Singapor e: Ad di so n Wesley.
19. Tan , Chwee Hua t . 1986. "The Management
Thought s of Han Fei Tzu:' In Proceedings of the
Academy of International BusinessSoutheast Asian
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ••••••••••••
Regional Conference, 16-28 Jun e, ed . R. Hsieh and
S. Scherlin g, 12- 21. Taip ei: Nationa l Chiao Tong
University.
20. Siengthai , Sununt a and Vadhan asindhu ,
Pakpachong . 1991. " Ma nage m ent in a Buddhi st
Society: Thail and'.' In Management: An Asian Co~text,
ed. Joseph Putti , 222 38. Singapor e: McGraw Hill.
2 1. Siengthai, Sununt a, Bech ter, Clem ens, and
Sin g leton , Helen. 2005. " Human Reso~rc e
Management in Thail and." In Perspectives on Human
Resource Managem ent in th e Asia Pacific, ed. Alan
R. Nankervis, Samir Chatt erj ee, and Jane Coffey,
201-3 0. Sydney: Pearson Educat io n , Austr ali a.
22 . iayeb, Mo nir. 1997 . " Islam ic Reviva l i n Asia and .
Human Resource Managem ent ." Emp loyee Relations
19, no . 4: 352- 64.
23. Me llahi, Kamel and Wood, Geof fr ey T. 2004. " HR~
in Malaysia:· In Managing Hum an Resources in As,a-
Pacific, ed. Pawa n S. Budhw ar, 201 - 220. Lo ndo n:
Rout ledge.
24. Teh, Elaine. 2005 . " Human Reso urc e Manag ement
in Mal aysia:; In Perspectives on Human Resource
Managem ent in the Asia Pacific, ed. Alan R.
Nankervis, 5am ir Chat terjee, and Jane Coffey,
157-78. Sydney: Pearson Education Aust ralia.
25. Thong , Grego ry T.S. 199 1. "Managing Process
in Bumiputra Society:' In Manag ement: An Asian
Context, ed . Joseph Putt i, 159-76. Singa por e:
McGraw Hill.
•••
 1 v Introducti o n to Hum an Resource Manage ment

any HR professiona l in stitute s have been formed at both the national as we ll as internat iona l
leve ls in the Asia Pacific region. It is important as a HR professional to be aware of these
institutions as it wi ll help you go a long way in navig at in g the HR land scape regiona lly. Some of
the institutions are given below:

u 1994: San Francisco, USA

World Federation of Personnel
Management Associations
www.wfpma.com
At the int erna ti ona l level, the Wor ld Federat ion of
Personnel Management Associations (WFPMA) is the
larg est organ ization for HR professionals.
Found ed in 1976, it is a globa l network of HR
professiona ls. Its members are continental federations
that are made up of more than SO nati ona l personne l
associations representing over 300,000 profess ionals. Its
secretariat is based at the Charte red Institute of Personnel
and Developm ent in London, England.
These four cont inent al federation s are:
v Asia Pacific Federat ion of Human Resource
Managem ent
u Europ ean Association for Personn el Mana ge ment
v Inter -American Federation of Personn el
Adm ini strat ion
u North Amer ican Human Resource Managem ent
Associatio n
The main objec ti ves of WFPMA are to:
u Improve the effec tiven ess of personne l
manageme nt, as we ll as t he importance of its role
in all organizatio ns.
u Assist in the deve lopment of regional and national
personnel manage ment associations.
v Maintain contact s with all its memb er associations
as wel l as w ith other simil ar organizat ion s.
v Support (and represent if request ed) personnel
management associations in their contact with
wor ld organizations such as ILO, UNESCO,and UN.
u Und ert ake research activ it ies on personne l issues
wor ldwid e.
The WFPMA World Cong ress is held every two years:
v 1986: Washington DC, USA
u 1988: Sydney Austra lia
v 1990: Buenos Aires, Argent ina
v 1992: Madrid, Spain
u 1996: Hong Kong
u 1998: Caracas, Venezuela
u 2000: Paris, France
u 2002: Mexico City, Mexico
u 2004: Rio de Janeiro, Brazil
u 2006: Singapore
WFPMA membership now represents about sixty nati onal
personne l associat ions and 1S0,000 professionals across
five cont inents. Each continent has a federat ion serving
coun tr ies on that continent. The Asia Pacific Federation of
Human Resource Management is the umbrella organ izat ion
for Asia-Pacific countries.
Asia Pacific Federation of Huma n
Resource Management
Th e Asia Pacific Federat ion of Human Resource
Management (APFHRM) has the following in sti tuti onal
members :
v Australia (Australian Human Resources Institute ,
AHRI) (www.ahri.com.au)
" Bangladesh (Institute of Personnel Management,
Banglade sh)
w Hong Kong Institute of Human Resource
Management (www.hkihrm.org .hk)
\1 India (Nationa l Insti tut e of Personnel Manag ement ,
India) (www20.brinkster.com/nipm)
"' Indon esia (Perhimpunan Man aj eme n Sumberdaya
Manusia , PMSM)
u Japan (Japan Society for Human Resource
Manageme nt, JSHRM) (www.i shrm.org)
.., Malaysia (Malaysian Institut e of Human Resource
Management, MIHRM)
u New Zealand (Human Resources Institut e of New
Zealand) (www.hrin z.org.nz)
u Papua New Guinea (Papua New Guinea Human
Resources Institute, PNGHRI)
., Philippines (Personnel Management Associat ion of
the Philippin es, PMAP) (www.pmap.org.ph)

'
I
-- --- ---- -~- - - - - ---- - -- --- ~ ----
Part 1 '-' Introduction
.., Singapore (Singapore Human ResourcesInstitute,
SHRI)(www.shri.o rq.sg)
u Sri Lanka (Institut e of Personnel Management Sri
Lanka, IPMSL)(www.iI2._msl.org)
~ Taiwa n (Chinese Taipei-Ch inese Human Resource
Management Association (www.chrma.orq.tw)
w Thailand (Personnel Management Association of
Thailand, PMAT)
ASEAN Human Resource Management
Federation
In 1991, several HRM associatio ns from Indonesia, Malaysia,
Philippines, Singapore, and Thailand became the founder
memb ers of the ASEAN Human Resource Management
Federation. The new organization was formed with the
suppo rt of the WFPMA and the Asia Pacific Federation for
Human Resource Management (APFHRM).The Federation's
secretariat is rot ated am ong member in stit utions. Since
its form ation, the Federation has been holding regular
conferences in the region.
Professional Institutes in Ch ina
After China introduced its "open door " policy, many
fo reign investors have set up operat ions in the Special
Economi c Zones and maj or citi es such as Beijing, Shanghai,
Guangzhou, and Tianjin. HR function s are usually delegated
to local deputy managers who are more fami liar with
Chinese HR practices.
During the past decades, several prof essional
association s have been formed. Some examples are:
u Human Resources Association in Foreign
Enterpr ises, Beijing (www.bihr .org)
• Guangzh ou Labour Manag ement Association
(www.Slabour.com)
TEDA Association of Human Resource
Management (Tianjin) (www. tedahrm.org)
Professional Institutes in Hong Kong
In Hong Kong Special Adm inistrative Region, the major
professiona l institut es are:
Hong Kong Institute of Human Resource
Management
Institute for Training and Development
Civil Service Trainin g and Development Institute
Hong Kong Institute of Human Resource
Management www.hkihrm.org
The Hong Kong Institute of Human Resource Management
(former ly Hong Kong Instit ute of Personne l Management)
was found ed in 1977 and has about 3,500 members. It
offers a range of courses from very short specific courses
(on topics such as labor legislation ) to lon ger programs
for HR practitioners. It also conducts surveys on pay and
organizes seminars on current HR issues.
In 1996, it hosted the World Congress on Personnel
Management, the first world congress to be held in Asia. It
was organized in conjunction with the WFPMA.The them e
was: Global Challenges and Country Practices in People
Management.
The Institute of Developme nt and Training
The Institute of Developme nt and Training (IDT) was
founded in 1964 (as the Institute ofTra ining Officers) in the
United Kingdom and the Hong Kong branch was formed in
1974.TheIDToffers a certificate in training and development
(in conjunction with the Hong Kong Technic al Teachers
College) that qualifies students for associate membe rship in
the institut e. Its diplom a in training manage ment qualifies
students for corporate membership in the institute. These
dip lomas have been offered in cooperation wi th both
the Chinese University of Hong Kong and the Asia-Pacific
International University (formerly University of East Asia) in
Macau.
Civ il Service Training and Deve lo p me nt Institute
www.info.gov.hk/cstdi
In Hong Kong, the Civil Service Training and Development
Institute (CSTDI) is the tra ining agency of the HKSAR
government. It provides training and consultancy services
to the public sector.
Professiona l Institutes in Japan
Japan Society for Human Re sourc e
Management (JSHRM) www.;shrm.org
The Japan Society for Human Resource Management was
formed in Apri l 2000. It is a relatively new organization
whe n com pared to others in Asia. Its mission is to impro ve
the compe tency of HR practitioners and provide them
wi th global views in respect of their capabi lities of linking
management and employment strategi es.
Japan Institute of Labour www.iil .go.ip
The present Japan Institute of Labo ur (JIL) was form ed
with the merger of the former Japan Institute of Labour
(established in 1958) and the Nationa l Institute of
Employment and Vocati onal Research (established in 1969).
The JIL has pub lished many research reports and bulletins
that provide useful informat ion on labor and HR issues.
 1 v
Professional Institutes in Malaysia
In Malaysia, the major HR-related professional institutes
are:
" Malaysian Institute of Human Resource
Management
" Institute ofTraining and Development
" lnstitutTadbiran Awam Negara
M a laysian Institute of Human Resource
Ma nag e ment www.mihrm.com.my
The Malaysian Institute of Human Resource Management
(MIHRM) was started in 1975 as the Malaysian Institute of
Personnel Management. Its major events include National
HR Awards and HR Managers Summit. In addition to its
main office in Petaling Jaya, it has branches in Johor Bahru,
Penang,and Sabah. It conducts numerous courses related to
HRM.Its diploma in personnel management was introduced
in 1987 in conjunction with the Faculty of Management of
the National University of Malaysia (Universiti Kebangsaan
Malaysia). In 1996, MIPM signed a memorandum of
understanding with the University of Portsmouth to launch
a Masters programme in HRM.1
Institute of Train ing and Develo pment
www.itd.com.my
The Institute of Training and Development (ITD) was
formed in 1974. It provides a wide range of management
programs.
lnstitut Tadbiran Awam Negara
The lnstitut Tadbiran Awam Negara (popu larly known
as INTAN or National Institute of Public Administration)
provides training for public sector emp loyees.
Professional Institutes in the Philippines
In the Philippines, the Personnel Management Association
of the Philippines (PMAP) (www.pmap.org.ph) was started
in 1956. It has 17 chapters throughout the count ry. HRM
Development Centre (HRMDC) is its training arm and
conducts a wide range of programs. The Society of Fellows
in Personnel Management is an affiliate of PMAP. It offers
opportunities for professional growth.
In 1996, PMAP hosted the 3rd ASEAN Human Resource
Management Federation Conference in Makati City to
coincide with its own 40th anniversary celebration and it s
32nd Nationa l Conference.
There is a separate Philippine Society for Training and
Development (PSTD). At the University of the Philippines,
the Asian Labour Education Centre (ALEC)was set up in
1954 as a training center for trade unionists. 2 The School
of Labour and Industria l Relations (SOLAIR) has several
research projects doing comparative studies on human
resource management in Japanese and local firms in the
Philippines.
Introduction to Human Resource Management
Professional Institutes in Singapore
In Singapo re, the major professional institutes are:
o Singapore Human Resources Institu te
u Singapore Training and Development Association
" Ong Teng Cheong Institute of Labour Studies
u Civil Service College
Singapore Human Resources Institute
www.shri.org.sg
The Singapore Human ResourcesInstitu t e (SHRI) is a not-for-
profit organization founded in 1965. It was former ly known
as Singapore Institute of Human Resource Management.
In 1971, a Professional Code of Ethics was adopted to
encourage members to maintain hig h professional
standards.
As an organizat ion representing the HR professionals,
the SHRI has on numerous occasions, submitted its views
to the relevant authoritie s on HR-related issues such as the
extension of retirement age, problems of the aged, and
national wages polic ies.The SHRIconducts courses leading
to the award of certificates, diplomas, and degrees in HRM.
The degrees are conferred by foreign universitie s. In 2006,
SHRI hosted the 11th World Congress in cooperat io n wit h
theWFPMA.
The SHRI has several publications to disseminate
information and knowledge to members:
" HR Singapore: Contains summaries of t he latest HR
events and policies in Singapore
" Human Capital:This monthly magazine contains
articles and reports on HR theories and practices
" Research& Practice in Human Resource
Management: This journal is pub lished joint ly with
Curtin University of Australia
Singapore Training and Development
Associat ion www.shri.org.sg
The Singapore Training and Development Association
(STADA)was formed in 1972. It conducts a wide range of
programs to enhance the skills of training professionals. It
also offers bachelor and master degree programs jointly
with foreign universitie s.
Ong Teng Cheong Institute of Labour Studies
In 1990, the National Trades Union Congress (NTUC) set
up the Singapore Institute of Labour Studies (SILS) to
provide labor education in Singapo re. The SILS was later
renamed Ong Teng Cheong Institute of Labour Studies in
commemoration of t he late NTUCSecretary General.
The main objective of the institute is to train unio n
leaders to manage their organizations, represent workers'
int erests, and help to establish good employment relations.
Included in its wide range of courses are the dip loma and
certificat e courses on employme nt relations. The Institute
also conducts research on emp loymen t issues.
 Part 1 u Introduction

Civil Service College www.cscollege.gov.sg

The Civil Service College (CSC) provid es trai ning for public
sector emplo yees. The CSC Internation al provides services
to int ern ational organization s that are interested in
Singapor e's public sector managemen t.

Professional Institutes in Thailand

In Thailand , th e maj or HR professional institutes are:
Personn el Management Association ofTh ailand
u Thailand Produ cti vity Development Centr e
At Thamm asat Unive rsit y, its Human Resource
Institute co ndu cts seminar s and research on HR
issues and polic ies. At Chulalongkorn Universit y, its
Sasin Gradu ate Institu te of Busines Administ ration
has link ed up w ith th e University of London's School of
Orient al and Afric an Studi es to offer a Master degree
pr ogramme in HR.3
...........................
' .....
Source:
1. Tan, V.1996. "MIPM Country Report " AHRMF Member
Letter: Quarterly News from the ASEAN Human
Resource Man agemen t Federation June:5- 7.

2. Sison, P.S. 198 1. Personnel and Human Resource

Management, 5t h ed. Ma nil a: Rex Book Store.

3. Harn a morne t, Dh an ado l. 1996. "Current Human

Reso urce Move m ent: A Report from Thailand :' AHRMF
Member Letter: Quarterly News from the ASEANHuman
Resource Management Federation June 3- 4.

V"'--·...··-·.-,.
-·• ,·· . . • n '. J -~(' ·::-:: -~- '

~~~----~~ .... r- - -~ ~- -· • • , -----1 • .~J,.:,~•Ja"\.u.,•' ,~ •

 • C •,
After stud ying this chapt er, you shou ld be able
to:
1. Avoid employment discrimin ation
prob lem s.
2 . Discuss the features of some em ploym ent
discrimi nation laws.
3. Discuss some discri m inatory HR practices ·
in recru itment, selection, pro mo tio n,
transfer , layoffs, and benefit s.
4 . Define and discuss diversity manage ment.
5. Discuss discr iminatio n laws and p ractices in
some Asia Pacific countries.
 part
Chapter2 -....
:,

Equa Opportunity a
Cm
C:
and the Law .....
0
and discrimination laws in countries where they
-·
0
::,
S ~veral years ago, a female flight attendant
1n Hong Kong sued Cathay Pacific after
she was forced to retire at 45 years of age,
do business.These laws app ly to HR practices
such as recruiting, training, appraising, and
ten years earlier than her male colleagues. rewarding employees. Enforcement of such
She said that the airline's policy violated laws is very strict in Western countries,
Hong Kong's sex discrimination law. She especially in the United States. The first part
claimed damages for loss of income and of this chapter summarizes the major anti-
expenses on unsuccessful job searches. discrimination laws in the United States. The
This short opening case shows that rest of the chapter discusses those in Asia
companies must be aware of equal opportunity Pacific countries.
 Part 1 v Introduction
Title VII of the -- --
Civil Rights Act This
section says an emp lo yer
cann ot discriminate on the
basis of race, color, religion,
gender, or national origin
wit h respect to emp lo yment.
Equal Employment
Opportunity
Commission (EEOC)
The EEOC is empowered to
in vestigate job di scrimination
complaints and sue on behalf
of indi viduals.
Affirmative action
Ac tion to elimin ate the
pr esent effects of past
discrimination.
Equal Pay Act of 1963
Thi s Act requires equ al pay
for equal work, regard less of
gend er.
Age Di scrimin at ion in
Employmen t Act
Th is Ac t prohib its arbitrary
age di scrimination in
employm ent and specifi call y
pro tects individu als over
40 years old.
Vocational
Rehabilita t ion Act
Thi s Act requir es federal
co ntrac t ors to take
aff irm at ive action for t he
diff erently abled.
Pregnan cy
Di scrimination Act
T hi s Act prohibit s sex
discrimination based on
pr egnancy, childbirth , or
related med ical conditions.
Sexual harassment
Hara ssm ent o n the basis
of sex t hat affects and
int erf eres w it h a person's
wo rk perform ance or creat es
an intim id at in g, hosti le, or
offensive work environm ent .
Equal Employment Opportunity
In The United States
Many A sian compa ni es have expanded th eir bus in ess to oth er countr ies in cl udin g
th e United States and Europe. Mo st of th ese Western co untri es h ave equal
empl oy ment opportunity laws . Enfo rcem ent o f the se laws is ve ry st r ict, espec iall y
in the United State s. It is imp o rt an t for As ian mana ge rs to know the se law s in th e
United States as we ll as in oth er coun tri es ,,., here they co ndu ct busin ess.
Law s that bar di scrimin ati o n aga in st min o ri ty groups in the Unit ed States are
nothin g n ew . Th e m ain ones are summ ar ized in Table 2.1.
Table 2.1 Major Discrimination Laws in the United States
Law Summary
Fifth Amendment to t he No person shall be depriv ed of life, lib erty, property,
US Constitution w ithout the due process of the law.
Thirt eenth Amendment Illegal for any state to make any law that abridges the
priv ileges and immuniti es of US citizens.
The cou rts view thi s amendment as barring
di scriminati on based on gender, national o rig in, o r race.
Title VII of th e 1964 Employer cannot discriminate based on race, colo r,
Civil Rights Act religion, gender, or nationa l origin.
Equal Pay Act Unlawful to d iscriminat e in pay on the basis of gender
when jobs involve equal wo rk; requi re equivalent skills,
effort, and responsibility; and are performed under
similar wo rking cond ition s.
Age Discrimination in Unlawful to discriminat e against empl oyees or
Employmen t Act applicants w ho are between 40 and 65 years of age.
Vocationa l Rehabilitation Act Employers w ith federal contracts ove r $2,500 must
take affirmat ive act ion in employing handi capped
persons.
Pregnancy Discrimination Act Prohibit s using pregnancy, childbirth, or related
medical co nditi o ns to discriminate in hiring, prom otion,
suspension, or di scharge, on any term or cond ition of
employm ent.
Americans with Disabilities Act Prohi bits emp loyers from discrimin ating against
qualified persons w ith disabiliti es with regard to
applicat ion, hiring, compensation, advancement, and
other terms of emp loymen t.
Employers must make "reasonable accommodatio n" for
physical or mental limitations un less do ing so impo ses
an "undue hardship" on th e business.
Sexual Harassment The EEOCguidelines define sexual harassment as
unw elcome sexual advances, request for sexual favor,
or othe r verbal or physical conduct of a sexual nature.
Und er the Ti tle V il o f the 1964 C ivil Rig hts Ac t, th e Equ .il Emplo y ment
Oppo rtunit y Co m mi ss io n (EEOC ) was set up. I t cons ists of f ive n1em be rs
ap point ed by th e US Presid en t. T he EEOC rece ives and in vest iga tes j ob
di scrimin at ion co mplaint s fr om indi v idual s. If it find s th at the char ges are ju st i fied,
it w il l tr y (t h rough con cili at io n) to reach an agree m en t to remove all aspects
of th e discrim in at io n. If con cili at ion fa il s, it h as th e pow er to go to court to
en force the law.
 2 u Equal Opportunity and the Law

Under the special Execution Order issued by the

US President, employers are required to take affirmative action
to ensure equal employment opportuni ty for those v,1ho may
have suffered discrimination in the past.

The Civil RightsAct

In the 1980s, several US Supreme Cour t decisions had the
effect of limiting the protection of women and minority groups
und er equal employment laws. This prompted the US Congress
to pass the Civi l Right s Act (CRA) in 1991. The Act places the
burd en of proof back on theemp loyersand permits compensator y
and punitive dam ages.
The CRA states that "An unlawful employment practice is
established ,,vhen the complaining part y demon strates that race,
color, religion, sex, or national or igin vvas a motiva ting factor
for any employme nt pract ice, even though other factors also
motivated the practice."

Unwelcome advances in theworkplace, no maner how "harmless"

they mayseem,consti tute sexual harassme nt. An employeewho is the
victimof sexual harassment may often be reluctant to report incidents
becauseof fearof retaliation or actual harm.

Civil RightsAct --- ~

It places burd en of proof
back on employers and
permits compen satory and
punitiv e damages.

'W e're committed to getting rid o f se'><i

sm, so
we really wo.ntto see yourse/fo.s one of the guy s here ."

BonaFideOccupational
Qualificat
ion 6 Discussthe featuresof t he majo r
equal opport unity employment
laws in the United States.
Lnthe United States, an employer can claim that the employment practice i~ a "bona e Why should foreign companies
fide occupational qualification" (BFOQ)for performing the job. Title VII provides that: operating in the United States
know these law s?
It should not be an unlawful employment pract ice for an employe_rt? hi.re an
e What is BFOQ?
employee ... on the basis of religion, sex or national origin ' in certam !~sta~1 ce,s
where religion, sex, or national origin is a bona fide occup ational guahftcation , e Give a few examples of how it can
be used to j ustify discrimination
reasonably necessary to the normal operation of that particular business. against age,gender, and religion.

Some examples are given in Table 2,2 .

 Part 1 u Introduction

Table 2 .2 Bona Fide Occupational Qualificat ion

Bona Fide Occupati ona l Qualificat ion
Age - The Age Discrimination in Employment
Act permits different treatment in instances
where age is a BF0Q. However, courts set the bar
high : the reason must go to the essence of the
bu siness.
Examples
Age is a BF0Q wh e n fede ral requirements impose a compulsory age limit.
such as wh e n th e Fede ral Aviation Agency sets an age ceiling for pilots.
Actors required for youthful or elde rly roles or persons used to advertise
or prom ote the sales of produc ts desig ned for youthful or elderly
consumer s sugg est othe r situations whe n age may be a BF0Q.

Religion - Religion may be a BF0Q in the case of
religious organizations or societies that require
employees to share their particular religion.
Gen de r - Gender may be a BF0Q for positions
requiring specific physical characteristics
necessarily possessed by one sex.
Religion may be a BF0Q when hiring persons to reach in a religious
school.
Some po sitions like actor, model, and washroom attendan t may require
gender as a BF0Q. However, for mo st jo bs today, it is d iffic ult to claim that
gend er is a BF0Q.

National Origin An employer who is running the Chinese pavilion at a fair may claim that
Chinese heritage is a BF0Q for persons to dea l with the public.

Diversity Management And

Affirmative Action
As a res ult of g loba liza tion and change in wo r kfo rce demograp hi cs, it ha s beco m e
nece ss ary to practice fair treatment a nd equ a l e mplo y m en t oppo rtunit y. Tod ay,
mor e fe mal es and p eo p le of diff ere n t ethnic g roup s ha ve become pa r t of the
work.fo rce. Globa l compan ies h ire peop le w ith d ifferent cu ltura l a nd la n g uag e
sk ills . The y reali ze that it is necessa ry to ma intain a d iver se workforce to tap
th e chan gin g d emographic s in th e ir co un try a nd ab road .

Managing Diversity
Managing di vers ity m ea n s takjng ste ps to ma ximi ze the adva n tages of a dive rse
~orkforce and to minim ize prejudice and bia s. In pr act ice, di ve rsity m a n ag em en t
m vo l~es both compu lso ry and vo luntar y ma nage m ent act ions.
~,rst, th e re are laws tha t require e mplo ye rs to m inimi ze d isc riminati o n at work .
While sue ~ compulsory action s can red u ce di ve rsity barri e rs, b le ndi n g a dive rse
wor kfo rce mt o a clo se -knit and product ive com mu nity a lso requires emp loyers to
tak e other steps .
Th ere are five bas ic organizational act iv ities in a di ve rsity m anage m e n t
p rog ram. The y a re summ ar ized below:
l. Provid~ str?ng _leadership. Comp ani es w ith ex ce lle n t rep u tatio n in
ma~agmg d iv ers ity have CEOs w ho s upp ort div e rs ity. Leade rsh ip means
takmg a st rong personal inter est and beco min g a rol e mod el fo r emp loyees .
2. Ass~ss t~e situation . The company mu st assess th e cur re n t s ta te of
affairs with res pect to divers ity man age m en t. One st udy foun d th at th e
n:o_st common t~o ls for mea sur ing div e rsity include eq ua l e mpl oy m e nt
hmn g and ret e ntion metric s, emp loyee at ti tu de su rveys, m a na ge m e n t and
emp loyee evaluati ons, and focu s groups .'
3. Provid e diversi ty training and education . O ne e xpert s ays that "th e
m ost commo n star tin g po in t for manag ing d ive rsity is to h ave e mp loyee
ed u cat ion pro g ram". 2
Diversity management can blend a 4. Change culture and manag emen t syst ems. Id eal ly, ed ucation p rograms
diverse work.force into a close-knit
and productive community. shou ld be co mbin e d w ith oth er concrete steps ai m ed at cha ng in g the
 2 u Equal Opportunity and the Law

Managing diversity means taking

"Now. the interesh'ng po.rt....." stepsto maximize the advantages of
a diverseworkforceand to minimize
V.ver s,ly Troinng prejudiceandbias.

orga niza tion's cultur e and manag ement sys tems. One
example is to change the perfor mance appra isal procedure
so that sup ervisors will be appr aised based part ly on their
success in red u cing intergro up conflicts.
5. Evaluate the mana gi ng divers ihJ program. One way to
evalu ate is to find ou t from employee attitude surv eys
whether ther e is any imp rovement in emplo yees' attitudes
toward div ers ity. In creating d ivers ity mana gement program s,
a company should not ignore the obvious. For exampl e,
trainin g foreign worke rs in their ow n languag e will help
them to un derstand the need to compl y w ith safety rule s.

Equal Employment Opportunity versus

Affirmative Action
Equal emplo yment opp ortuni ty aims to ensure that peop le, LongoToyo ta staffmembers at the El
regardl ess of race, color, sex, religio n, nati onal origin, or age, have an eq ual Monte,California , dealer
ship. Longo's
chance for a job based on their qualification s. Affirma tive action goes beyo nd this 60-person staff speaks20 languages,
andLongohas builta competitive
by requiring the employer to take actions (in recruitment , hiring, promotion s, and
advantage basedon its employee
compe nsation) to elimin ate the present effects of past di scrimination. diversity.

~ Diversity Management
The Baxter example
. In managing diversity,BaxterHealthcareCorporation started with a company policy that
said "Baxter International believesthat a multi-cultural employee population is essential
to the company's leadershipin healthcarearound _the world ." It then publicized this
philosophy throughout the company. It then tciok steps·to foster diversity and manage
it. The steps included evaluating its diversity program efforts,recruiting minority
members to the board of directors,and interacting with representativeminority groups
and networks,and offering diversity training programs.

The Longo Toyota example .

Some critics claim that a d(verseworkforce creates conflicts and increases costs.
The case of Longo Toyota in California has proved them wrong. Longo' builds its
competitive strategy on diversity. it has a 60-person sa·les force that speaksmore
than 20 languages,from Spanish to ~orean to Tagalog. Longo's staff provides a
powerfu l competitive advantage for serving an.increasingly diverse customer base.

- .....
 Part 1 "' Introduction
Human Rights ------...
and Equal Opportunity
Commission (Australia)
Emp loyees who have
been discrim inat ed by an
emp loyer can comp lain to
th is commiss ion.
Equal Opportunity
Commission
(Hong Kong)
Th is comm ission prov ides
em plo yers with a code
of pract ice on job
advertisements, tit le,
compensation, promot ion,
transfe r, and tra ining.
Discrimination Laws In The Asia
Pacific
Many coun tr ies in the As ia Pac ific have introdu ced d iscriminat ion law s that mak e
it unl awf ul to trea t peop le unfairl y beca u se they have ce rta in attr ibu tes.
Australia
In Au strali a, there are seve ra l laws at th e fed era l and state leve ls to ensur e tha t
e mplo yees are not d iscrimin ated against a t th e wo rkp lace. At the fed era l leve ls, the
maj or laws are:
tJ Racial Discrimin ation Ac t
u Sex Discrimin at ion Act
u Disab ility Discrimin ation Ac t
u Affirm ative Act ion (Equa l Opportunity for Women) Ac t
e Racial H atred Act Workplace Relations Ac t
o Workp lace Re lations Ac t.
Empl oyees w ho have bee n unl awf ull y d iscriminated aga inst by an e mpl oye r
may compl ain to the Human Right s and Equal Opportunit y Commi ss ion
(HREOC) .3
Hong Kong
In Hon g Kong, severa l di scriminati on laws we re introdu ced in the 1990s . Th ey are
summari zed in Table 2.3 .
o Sex Dis cri min at ion O rdin ance (1996)
u Disabi lity Discrimina tion Ord inanc e (1996)
u Fa mil y Statu s Discr imin ation Ord in an ce (1997)
Table 2.3 Discrimination Laws in Hong Kong
Ordinance Objectives
Sex Discrimination o Deals wit h discrimin atio n on the g rou nds of gender,
marital statu s, and pregnancy covering bot h wo rk
and non -work situations
Disability Discrimination e Aims to elimin ate social and indu strial discrimination
against th e differently abled
Family Status Discrimination e Makes it un lawful to discrimi nate against anyone,
at wo rk and out side wor k, on the ground of fami ly
status th at implie s, in law, an individual having
responsibility for the care of an imm ediate family
member
By v irtu e of th e Sex Disc rimination Ordin an ce, th e Office of the Equal
Oppor tunit y Commi ssi on has been se t up. It is emp owe red to in ves tiga te
no n-compl iance with the law.~
Th e Eq ua l O ppo rtuniti es Co mmi ss ion pro vides empl oyers w ith a code of
practic e on job adverti se m ent, job tit le, compensat ion, promo tion, transfer , and
tra ini ng . Pr ac tices that a re barr ed include:
v Adver tiseme nt that sp ec ifies ge n der or ma rital stat u s
u Qu es tions on job ap plicat ion for m tha t ask ge nd er or marital s tatu s, or
info rmation abo ut sp ouse
v Differen t job titles for men and women doing the sa m e wo rk.
 2 u EqualOpportunity and the Law

Indonesia
In Indone sia, there are no discrimination laws for female
emplo yees. Howeve r, female employees have special
right s such as two days off during menstruation and three
month s off for preg nancy. Any such time off mu st be paid
for at the normal wage rate.
Under the emplo yment law, pregnant emplo yees
cannot be dismi ssed. They have the right to return to their
job after maternity leave. 5

Japan
In Japa n, the Labor Standard s Law (LSL) prohibit s
discrimination in wages, work hours, and other labor
Pregnant employees
havetherightto return
condition s if the discrimin ation is because of nationality, to theirjobaftermaternity
leave.
creed, or social statu s. It prohib its discrimination against female work ers in
wage s. The Equal Employment Opportunity Law (EEOL) provide s equa lity in
op portun ity concerning recruitm ent, payment, promotion, and training for both Equal Employment
ma le and female workers.6 Opportunity Law (Japan)
This law provides equal
employment opportunity
in recruitment, payment,
HR in ACTION promotion, and training
for both male and female
\.L,/ Kasei-Workplace for the Differently Abled
workers.
In 1993,Mitsubishi Chemical Corporation inJapan set up a special affiliatecompany
Kasei Frontier Service Inc (KFS). Thiscompany providesemployment opportunities
for the differently abled. It provides special facilities,counseling,sign language
courses,and others.These employeeswork in.office automation centers, mailand
copy centers, and personnel service centers.The company was honored by the ·
Ministryof Health, Labor and Welfare forcreating a comfortable workplace forthe
differentlyabled (www.m-kagaku.co.jp).

Code of Responsible
Singapore Employment Practices
(Singapore)
In Singapore, there are no specific discrimination laws. Howev e1~ in December
Thiscode helps employers
2002, the Singapore Nat ional Empl oyers Federation (SNEF), Singapore Business to promote responsible
Federation (SBF),and the National Trades Union Congress (NTUC) released a joint employment practices.
statement on the Code of Responsible Employment Practices.

Thetrendofagingpopulationsmeansthat
companieswill needto maketheiremployment
practices
as age-friendly
aspossible
.
 Part 1 v Introduction

The ob ject ive of th e code is to he lp e mpl oyers p romote res pons ib le e mplo y m e n t
practice s regard less of race , re lig ion, age, gende t~ marita l s ta tu s, di sab ility, or fac to rs
that are no t re leva n t to th e job . The cod e e nco ur ages se lf-reg ul a tio n on th e part
of em p loye rs and e mpl oyees in recruitment , se lect io n, ap pr a isa l, jo b up g radin g,
pos tin g and tra inin g, as we ll as term s and co nditi o ns of empl oy me nt (see HR
Today on p age 45).
In A pril 2006, Singa po re's Tripa rtite Co mmi ttee iss u ed th e Business Guide
on Age-friendly E111ploy111e11t Practices. Th e guid e su ggests seve ral mea s ure s for
bu sin esses to cons id e r. It also g ives num ero u s exa mp les that so me compa n ies have
imp le m ent ed. The guide cove rs six a reas (see HR Today o n pa ge 45):
u Recruitment
o Rem u neratio n and benefits
v Job re -d es ign a nd automat ion
u New work a rran ge m en t
v Re-e mpl oy m e nt po licy
u Manag in g caree r tr ans itio n .

Labor Standard Act
(South Korea)
This Act prohibits emp loyers
from d iscr iminat ing aga inst
workers on the basis of
gen der, nationality , religio n,
or socia l status.
HR in ACTION
L..,}' Singapore: Protecting Pregnant Employees
In August 2004, Singap ore's National Tripartite Advisory Panel issued a set of
Guidelines on Fam ily Friendly Workplace Practices.7
The Guidelines include general principles for companies that emp loy pregnan t
emp loyees and th ose with young persons. _
e A company should promote and reta.in emp loyees based on merit and
co nt ribution.
e A compa ny should not discriminate emp loyees because of their family ·
responsibilities such as taking care of dependent children o r oth er family
membe rs. ·
o A company sh0u ld treat all employees fairly in providing we lfare benefits.
o Employees shou ld not be treatec;:fless favorably beca use of pregnancy,
childbirth, or mate rnity leave. ·
South Korea
In So ut h Kor ea, th e Labor Standard Act proh ib its e mplo yer s from d iscrimin atin g
aga in s t wor kers on the bas is o f ge n de r, nat ion a lity, re ligion, or soc ia l stat u s. 8
Th e Em p loyme n t Eq u a lity Act ensures eq u a l
oppo r tunit y an d eq u a l trea tm en t of m en a nd women in
em p loy m en t. Thi s Ac t proh ib it s di sc rimin a ti on of wo men
in the areas of rec rui tme nt , empl oyme n t, wages, non-
wage payment, trai nin g, ass ig nment , a nd promotion.
Und e r the Aged Emp loy m e n t Promot ion Act , it is
recommended th a t em p loyers w ith over 300 wo rker s
sh o uld ha ve a minimum o f 3 perce n t of th e ir workers in
the a bove- 55 age g roup. Sim ila rl y, un de r the E mpl oyme n t
Promotion Act for th e Handic app e d , it is reco mm end ed
th a t e mpl oye rs w ith ove r 300 wor kers h ave a mi nimu m
of 2 perce nt of h and ica pp ed wo rke rs. Tho se who hir e less
th an the reco mm e nd ed rat e h ave to pay a levy.

Somecountrieslike South Korearecommendthat

employerswith over 300 workershavea minimumof
2 percentof handicappedworkers.
 2 l Equal Opportun ity and the Law

Protection Against Sexual Harassment

In 1999, Ma lays ia issued the Code of Practice for the Preve ntion and Handlin g Code of Practice -------..
of Sexual Harassment at the Workplace. The Code also prov id es a mechani sm for the Prevention
for redr ess. The M ini str y of Hum an Resour ces has a special d iv ision to handl e and Handling of Sexual
sexual harassment cases. It has also encour aged trade uni ons to includ e sexual Harassment at the
Workplace (Malaysia)
harassment clauses in their coll ecti ve agreements.
This code provides a
In Th ail and, under the Labor Protection Law, vvomen may sue em pl oye rs mechanism for redressin
or coll eagues for passin g remarks of a sexual natur e to wo men at the wo rkpl ace. cases of sexual harassment
Sexual harassment is broadl y defin ed and includ es any verbal, mental, or physical at the workplace.
abuse.
Labor Protection Law
(Thailand)
Under thi s law, women may
sue employers or colleagues
for sexual harassment.

CHAPTER SUMMARY
1. In the Unit ed States, th ere are num erous laws that bar emplo yment discrimination . Exampl es are:
a. Titl e VII of the Civ il Rights Act

\ 2.
b. Equal Pay Act
c. Age Discrimination in Employm ent Act
The Americans w ith Disabiliti es Act prohibit s empl oyment discrimination again st th e differentl y abl ed.
Specifi cally, qualifi ed person s cannot be discrimin ated against if th e comp any can make reasonable
acco mm odation s w it hout undu e hardship o n th e business.
3. There are various specific discrimin ator y HRM practi ces th at comp anies should avoid in recruitm ent
and selecti on.
4. There are anti -di scrimin ation laws in many countri es in t he Asia Pacific.
5. In som e countri es in th e Asia Pacific, th ere are laws th at prot ect against sexual harassment.

KEYTERMS
affirmati ve action , 34
Age Discrimin ation in Employment Act, 34
Aged Empl oym ent Promotion Act
(South Korea), 40
Bona fide occupati onal qualificati on, 35
Civil Right s Act, 35
Code of Practice for th e Prevention and Handlin g
of Sexual Harassment (Malaysia), 41
Code of Responsible Employment Practic es
(Singapor e), 39
Disabili ty Discrimin ati on Ordin ance
(Hong Kong ), 38
Employment Equalit y Act (South Korea), 40
Employment Promoti on Act for th e
Handi capp ed (South Korea), 40
Equ al Employment Opportunit y Commi ssion, 34
Equal Employment Opportunit y Law (Japan), 39
Equal Oppo rtunity Commi ssion (Hong Kong), 38
Equal Pay Act, 34
Famil y St atu s Discrimin atio n Ordin ance
(Hong Kong), 38
Human Rig ht s and Equal Opp ort uni ty Commi ssion
(Austr alia), 38
Labor Prot ecti o n Law (Thailand), 41
Labor Standard Act (South Ko rea), 40
Labor Standards Law (Japan), 39
Preg nancy Discrimin ation Act, 34
Sex Discrimin atio n Ordin ance (Hong Ko ng), 38
sexual harassment, 34
Tit le VII of Civil Right s Act, 34
Vocati onal Rehabili tat ion Act, 34

\
Part 1 u Introduction

I
I
DISCUSS! I
1. Explain the main features of Tit le VII, Equal Pay Act, Pregna ncy Discrimination Act, Americans w it h
Disabilities Act, and Civ il Rights Act. . . I
2. Discuss the main featu res of the Sex Discrim ination Ord in ance, the Disabi lit y Discriminat ion Ordinance,
and Family Status Disc rimi nat ion Ord inance in Hong Kong. I
3. Discuss the main features of the Emp loyment Equality Act, the Aged Employment Promotion Act, and the
Employment Promot ion Act for the Hand icapped in South Korea.
4. Discuss the main features of the Code of Responsible Employm ent Pract ices in Singapore.
I
5. What is sexual harassment? How can an em ployee prove sexual harassment?
6. Explain the d ifferences between affirmative actio n and equa l employment oppo rtun ity.
I
••••••••••••••• • ••••••••••••••••••••••••••••••••••••
I
INTERACT!
I
ACTIVITY1 Worki ng indi vidua lly o r in g roups, respond to the fo llow ing th ree scenarios based on what you I
learnt in this chapter.
Under what cond itions (if any) do you think t he fo llowing in cid ents constitute sexual harassment?
1- A female manager fires a male em plo yee because he refuse s her requests for sexual favors .
I
2. A male manager refers to female employe es as "sweet ie" or "baby: '
3 · Two male emp loyees are overheard by a third femal e emp loyee exchang ing sexua lly oriented jokes .
I
ACTIVITY 2 Assume you are a supervisor in a small restaurant. You are respons ible for hiring emp loyees,
I
supervis ing them, and recommend in g them for promotion. Working individua lly or in groups , compi le a list of
potentia lly discriminatory management practices you sho uld avoid.
I
• ••••• • • ••• • •••• •••••••••••• •• • ••• ••• ••• •• •• • ••••• ••
I
I
USE YOUR HR SKILLS!
A Case of Sexual Discrimination I
In Aug ust 1999, a former fema le flight attendant in Hong Kong started a lawsu it against Cathay Pacific after she
was_forced to retire at 45 years of age, ten years earlier than her male co lleagues . In September 1999, she quit
I
her Job after 20 years of service because of the rule that demanded t hat fem ale cabin crew who joined before
l 993 must ret ire at 45 w hile male crew memb ers co uld work til l 55. I
_The fema le flight attendant said that the airline's po licy vio lated Hong Kong 's Sex Discrimination
rd
O inance, wh ich had been in force sin ce 1996. She claim ed damages fo r loss of incom e since September 1998
and expe nses on unsuccessful job searches.9

Questions
1. Discuss Cathay Pacific's po licy of ret irin g female fl ig ht attendants at age 45.
2. Do ot her airl in es have simi lar po licies?
3
· Why must HR ma nagers be aware of "equa l emp loy ment opportunity" laws of various countries ? Give
speci fi c examp les.
 2 v EqualOpportunity andthe Law

EXPERIENCE
HR!
Retirement at 62
In Singapore, the Retirement Age Act came into effect in 1993. The obj ecti ve is to state a minimum ret irement
age for empl oyees. The current retirem ent age is 62. Employers may ask the Ministr y of Manpower for
exem ption w here the jobs are physically demanding, or hazardou s for older wo rkers. Other possib le exemptions
include wor kers in j obs th at require alertness, dexterity, and good eyesight. The Mini stry wou ld also consider
leaving out from the Act emp loyees w ho need to maintain a certain corporate or service qua lity image.
Purpose
The purpose of thi s exercise is to provid e you w ith t he opp ort unity to discuss issues related to age and
ret irement.

Required understanding
Be familiar wi th the mat erial in this chapter and t he retir ement age regulation of yo ur ow n country.

How to set up the exercise

1 . Divide the class into groups of three to five stud ents.
2. Each group should discuss the following questions:
a. Is 62 a "reasonable" retir ement age for all wor kers?
b. Give example s of persons w ho should be encouraged to ret ire before age 62.
c. Give exampl es of persons w ho should be encourag ed to continue to wo rk at age 62.
d. What arrangements should employers make for their employeeswho are approaching th eir retirement age?
If time permit s, ask each group to do a short present ation and comp are th e simil arit ies and diff erences of their
answe rs.

•• • •• • • • • ••• ••• ••• • • • • ••• •• • •• • • • •• •• •• •• •• •• •• • • • • •

m l~n Laundry Company

A CONTINUING CASEIN EVERYCHAPTER

.•.
A Question of Disc rim ination
At her father's KK Laundr y Company, Consulting Manager Jennifer Ko faced several management pr ob lems.
They were related to HR practices and procedures.
One prob lem was t he lack of attention to equal emp loyment issues. Alm ost all hiri ng was handled
independe ntl y by each store manager, and the managers th emselves had received no training on such basic
matters as th e types of qu estions that shou ld not be asked of job app licant s. It w as t herefo re not unusual-in
fact, it was routi ne-for female app licant s to be asked question s such as, "Who is going to take care of yo ur
chil dren w hil e you are at wo rk?"
Based on discussions w it h her father, Jen noted several reasons for t he poo r attitu de to wa rd eq ual
em ploym ent - her father 's lack of kno wledge abo ut the legal requir ements. This was refl ected by his comme nts
such as: "Many of ou r wo rkers are wo men. Others are from different ethn ic and age groups. No one can really
accuse us of being discrimin ator y, can th ey?"
Jen needed to think over abo ut th at question, but befo re that th ere were two oth er serious equa l righ ts
probl ems.Two women in on e of her stores privat ely to ld her th at the ir manager was making unw elcome sexual
advances toward th em. One claimed he had thr eatened to fir e her unless she "socialized" w ith him after wor k
hour s. And during a fact finding trip to anot her store, a 60-year-old emp loyee complain ed th at alth ough he had
almost 40 years of wor k exper ience, he was paid less th an peop le half his age w ho we re do ing the same job.
Jen's review of the stores resulted in t he follow ing questions.
Part 1 1:1 Introduction

Questions
1. Is it true, as Jak Ko claims, that "we cannot be accused of discrimination because we hire mostly women a nd
people from different ethnic and age groups"?
2. How should the company deal with the sexual harassment charges and problems?
3. How should the company deal with possib le problems of age discrimination? ..
4. Besides these specific problems, what other HR management practices (application form, training, etc.) have
to be reviewed if the company wants to comply with equa l emp loyment opportunity laws?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Endnotes
1. Digh, Patricia. 1999. "Creating a New Balance Sheet:
The Need for Better Diversity Metrics:' Mosaics
(Society for Human Resource Management ),
October, p. 1.
6. Hosogaya, Nobuko. 2002. "Japan:' In Handbook ~f
Human Resource Management Policies and Practices
in Asia Pacific Economies, ed. M. Zanko, 294- 367.
Chelt enham, UK: Edward Elgar.

2. Cox, Taylor. 1993. Cultural Diversity in Organizations:
Theory, Research and Practice. San Francisco:
Berrett-Koehler, p. 236.
3- Mylett, Terri and Zanko, Michael. 2002. "Australia:' In
Handbook of Human Resource Management Policies
and Practices in Asia Pacific Economies, ed. M. Zanko,
23-120 . Cheltenham, UK: Edward Elgar.
4- Ng, Sek Hong and Wright, Robert. 2002. "Hong
Konf In Handbook of Human Resource Management
Pol,oes and Practices in Asia Pacific Economies, ed. M.
Zanko, 167- 259. Cheltenham, UK: Edward Elgar.
7. Tan, Chwee Huat. 2007. Employment Relations
in Singapore , 5th ed. Singapore: Pearson
Prentice Hall.
8. Ko, Sangwon. 2002. "Republic of Korea." In
Handbook of Human Resource Management Policie s
and Practices in Asia Pacific Economies, ed. M. Zanko,
368-440 . Cheltenham , UK: Edward Elgar.
9. Straits Times. 1999. "A Caseof Sexual Discrimiation :'
August 5.

S. Prijadi, Rustan and Rachmawati, Riani. 2002.

"Indonesia :' In Handbook of Human Resource
Management Policies and Practices in Asia Pacific
Economies, ed. M. Zanko, 260- 293. Cheltenham ,
UK: Edward Elgar.

• • • • • • • • • • ......................• • • • • • • • • • • • • • •

M~; TbDAi
. Code Of Res:Ronsible
Employment Practices
n a joi~t release issued ?Y Singapore N_ationa l Employers Federation (SNEF), Singapore Business
I Federation (SBF), and National Trades Union Congress (NTUC) on December 20, 2002, this code of
Responsible Employment Practices was announced.
1. Introdu ction
2. Guiding princip les
3. Selectio n crite ria applied consistently
4. The rec ruitment process
to Advertis in g
v Int erna l recruitment
.., Vetting applications
"" Short - listing
u Test
u Interview ing
5. Recruitment through employme nt agencies and
emplo yme nt services
6. Appraisa l, job upgrading, posting, and training
7. Employers' role
8. Employ ees' role
9. Conclusion
1. Introduction
Singapor ean society is multi -racial, multi-cultura l, and
multi-religious. Emp loyers and employees must apprec iate
the diversity of the workforce and wo rk together to achi eve
workplace harmony. Employers shou ld tr eat all staff fairly
and continue to recruit based on skills, mer it, experience,
capab ili ty, and relevant j ob req uirem ents .
This code helps employers promote and observe
responsible em ploym ent practices in th eir workplaces
regardless of race, religion , age, gender, marital status ,
disabi lity, or factors that have no relevance to the
requi rement s of th e j ob. The code encourages self-regu la-
tion on the part of employers and employees in areas of
employment including recruitm ent, selection, app raisal,
job upgr ading, posting and training, as wel l as terms and
conditions of emp loyment .
2. Guiding Princ iples
This code is based on the following guiding princip les:
a. Candidates for employment should be selected
on merit, experi ence, capability, and other j ob
requi rements.
b. For situati ons of business necessity w here race,
language, religion, and cultur e are considerations for
the j ob, parties must recognize that select ion is based
on th e specia l attributes of the candidates who meet
the requirement s of th e job.
2 ° Equal Opportunity and the Law
c. Employers should adopt good human resource
practices, including non-discriminatory emp loyment
pr act ices to attract the best talents for the
organizations.
3. Selection Criteria Applied Consisten tly
Employer s are recommended to apply selection criteria
consistent ly for all aspects of employment, including
recruitment , training, appraisal, job upgrading , and
po sti ng. Such criteria should be specifically rel ated to th e
requirements of the job and avoid references that have no
relevance to the requirements. Examp les of requirements
include :
11 Type of experience, such as market ing experie nce
u Amount of experience, such as fi ve years in a relevant
field
1:1 Educational qualifications, such as a diploma in
mark et ing
u Specific skills such as technica l and managerial, such as
languag e or computer skills
ti1 Personal qualities required for the job, such as a
willingness to travel.
Criteria and the te rms and conditions of employment
should be :
u Made known to all emplo yees and job app licants on
request
1.1 Circulated to all employees o n a regu lar basis.
While discrimination is not condoned and select ion
shou ld be based on requ irements of the job, there are
situat ions of business nece ssit y whe re a person 's race,
nationality, or origin co uld be a requir ement fo r th e job .
Such situation s of bu siness ne cessity might include:
w Food & beverage services w here race, language, or
religio n is a req uir ement or qualification for the j ob
t1 Personal servi ces such as welfare, education, or
simil ar personal service s that can most effectively be
performed by persons of the same or other particular
race.
In such situations of business necessity th e employe r
has to exp lain to the em ploye e and make it cle ar th at
selection is based entirely on job requirements.
 Part 1 ° Introduction

Examp les of specific requirements for business
necessit ies are:
v Langu age requirement s, e.g., companies w ith business
interests in China wh ich are recru iting off icers
t o handl e major Chin ese clients may require the
officer s t o be conve rsant in Mand arin . Th e languag e
requirement shou ld be stated clearly- "Conv ersant in
Manda rin " in stead of"Ch inese on ly''.
v Religiou s sensit ivit ies, e.g., emp loye es worki ng in a
Halal kitche n must be in complian ce w ith the certifi ed
requ irements of MUIS (Maj lis Ugam a Islam Singapur a,
or Islamic Relig iou s Coun ci l of Singapore) ; cashiers in a
sup erm arket m ay be requir ed to handle pork at check-
out co unt ers.
4. The Recruitment Process
All staff hand lin g j ob app licat ions sho uld be train ed t o
recog nize and avoid di scriminato ry practice s.The follo wi ng
para~raph s spell out th e key princ iples at each stage of th e
recruitment process.
a. Advertising
The Tripa rt ite Guide lin es on Non-Discriminatory Job
Adve rtisem ent (March 1999) should be adhe red to .
Selectmn criteria sho uld be st ated clearly in the j ob
adve r~isement, and should princip ally be on relevant
qua_lificatio ns, skills, kno w ledg e, and expe rience based
on Jo_b requi rements. Discrimin at ion at th is stage of th e
Exam p les of acceptable criteria in jo b advert isements
(based on Tripa rt ite Gui delines on Non-D iscrimin atory Job
Advertisem ent s, March 1999):
" Amount of relevant expe rience, i.e., at least two years
of service in purchasing
u Educationa l qualifi cat ion , i.e., Seconda ry/ NT( 3
qua lifi cat ions
., Relevant skill s or knowledge, i.e., fluent in Englis h &
Chine se, Class 3 dr iv ing license
u Relevant attri bute s, i.e., highl y di sciplin ed, physica lly
stro ng, good commu nication skills.
11 Oth er job requirements, i.e., able to wo rk on rota t ing
shi fts or pu b lic hol idays
b. Intern al recrui tment
For pos iti ons that are fill ed t hrough internal recruitm en t
(i.e., job upgrading , post ings, transfer s), emp loye rs are
encourag ed to inform all eligibl e emp loyees of the
opportuniti es and job requi reme nts.
c. Vetting applications
At the pre-int erview stage, it is recomme nd ed that all
applications be processed by apply in g the selection
crit eria consi ste ntly. It is recommend ed that application
fo rms avoid qu estion s that may suggest an int ent ion to
tak e account of facto rs that wou ld, or mi gh t, di scriminat e
the applicant on vario us gr oun ds.

) recruitme nt proce b . .
ss can e avoided by ensuri ng t hat the
con tents of the adve rti sem ent fo llow select ion crite ria
spe 1tou t
.
r · .
ear 1er in Section 3 on Select ion Crite ria App lied
d. Short-listing
It is recomm ended that a sho rt-list be draw n up on the basis
of crit eria that pro v ide objec t ive standards for assessing
Cons1ste ntly. the experience and capabi lity of each app licant.
Some points to conside r include· Emplo yers are encouraged to:
Religion-Re ligion sho uld no; be a crite rion on ., Guard against making prematu re assum pti ons about the
adverti sements except in cases w here emp loyees abilit ies of persons of particular race, nation alit ies etc.
have to perform relig ious functio ns as part of th e j ob u Train personne l staff to recog nize th e danger of such
requir ement s.
assumptions and to be object ive by match ing abilitie s

roeq
1
f Age Employers sho uld not state age as a requirement
r e~p oyme nt unless the physi ologica l nat ure or practica l
of the applicants to j o b requirement s.
uireme nt s of th · b e. Test
healt h of th . e JO may have a negat ive effect on th e
att ribut es s~~pp l1cant. In such a case, th e requir ed phy sical If tests are used fo r selection purp ose, it is recommended
age lim ·t E uld ? e d_esrnbed rath er tha n indicating an t hat t hey are:
1
t · xamp le. Del1veryman-"Applicants are requir ed ., Specifica lly relat ed to th e job requirement s and
~ carry loads of up to 15 kg" rather than "Appli cants below measure ap pli cant s' actu al or pot ent ial ab ility to d o o r
4 years old on ly."

da
t!:r~~~~r
from a
s are di srn urag ed _ from asking the age and
• of th e applicant. Thi s may dete r older workers
be tra ined for t he job.
Professionall y designed w henever po ssibl e.
... Reviewed regularly to ensure th at they remain relevant
1
possibip Ytng for e_ mpl oyme nt or may otherwise ind icate and free from bias in con tent or scoring.
e in te nt to discriminat e based on age.
Manta/ status - Manta
as - b
· I
statu s sho uld not be a criter ion f. Interviewing
JO s can be performe d eith er by s·1 n gles · d During interv iews, it is recommend ed th at:
persons . or m arne
Gender- If pra t· 1 •
All staff involve d in the in terv iew proc ess be train ed to
c 1ca requ irem ent s of the jo b need recogn ize and avoi d questio ns that can be perceived
emp Ioyees of a pa t · 1
r 1cu ar gende r th en an obje ctiv e reason as discrimin atory.
m ust be specified E " ' • . . .
cond h · xamp 1e: Female 1mm1grat1on off icer to H Questions asked at j ob inter views relate only to th e
uct c eeks on fema le persons."
requirements of the job .
 2 v Equal Opportunity and the Law

- ,.
,.
.' .

Where it is necessary to assess whether personal
circumstances will affect performance of the job,
interviewe rs should discuss this objectively without
questions that may suggest th at the candidates'
background or circumstances may influence the outcome
of the interview.
Interviewers are encouraged to record the assessment
they have formed of the applicant's ability to meet the
selection criteria. This will help to ensure that th e applicants
have been fairly assessed.
After the interviews, employers should select
candidates strictl y on the basis of suitabi lity. The unsuc-
cessful candidates should be informed.
5. Re cru itment Through Employme nt Agencies
or Emp loyment Services
Should emp loyme nt agencies or employment services be
used for recruitm ent, emp loyers are encouraged to advise
agencies to fol low the recommendations in this code. In
particular , they should state clearly that vacancies are open
to all.
6. Appraisal, Job Upgrading , Posting,
and Training
In areas of appraisal, job upgrading, posting, and training,
employers are strong ly encouraged to do the following:
u Where an appraisal system exists, employers examine
the assessment criteria to ensure t hat emp loyees are
assessedand promoted on merit and performance and
that the criteria adopted are consistent ly applied and
non -discriminatory. It is a good practice to establish
measurable stand ards for evaluating job performance.
u Where opportunities for job upgrading, training, or
posting arise, employers inform all eligible employees
of th e condi t ions and procedures for application.
" Employers review rules that restrict or preclude
posting between certain jobs and change t hem if they
are found to be discriminatory.
u Employers examine policies and practices on selection
for training, and other opportunities for personal
development with a view to ensuring that they are not
discriminatory.
7. Employers' Role
Companies are strongly encouraged to:
"' Make a comm itm ent to apply the code .
v Publi cize the policy and educate both management
and emp loyees, so that they understand thei r roles
and appreciate the sensitivities and issues.
~ Set up proper mechanisms to deal wit h complaints of
discrimination.
"' Take steps to ensure that the code of practice is
followed closely.
8. Employees' Role
Employees can help to eliminate discrimination. They can:
"' Familiarize themse lves with the code of practice.
u Exercisevigilance and tolerance at the workp lace to
ensure comm uni cation and pract ices do not disrupt
wo rkplace harmony.
" Seek to resolve grievances arising from discriminat ion
at work through dialogue , discussion, and proper
mechanisms.
9. Conc lusion
Both employers and employees have responsib iliti es
in minim izing and elimi nat ing discrimination in the
workp lace. Employers who need assistance in applying
the code can seek advice from the Singapore National
Employers Federation (SNEF) or Singapore Business
Federation (SBF). Unionized employees can seek advice
from their unions in situations where they feel they have
been discriminated.

I " l' f'- -r~ --? • - • - -- • • • - • . - -•

. ,,t
t~'.,,·J•,·' .
I
~.:'..- _ ...........L. - -~--- -------- __ ..... ____ - - - --- -- - ------ -- - --- - ----- -- - - ----- -
Part 1 Introduction
In A pril 2006, Singapor e's Tripartite Committee on
Employab ilit y of Older Wo rkers issued the BusinessGuide
on Age-Friendly Employment Practices.The guide suggests
some pr act ica l measures for businesses to consider.
It giv es num erous example s that some compani es have
implemented. Th e Guid e covers six areas: (1) recruitmen t,
(2) remuneration and benefi ts, (3) job re-desig n and
aut ?mation, (4) new work arrange m ent s, (S) re-em ployment
policy, and (6) manag in g career transition.
1. Recruitment
The age-fr iend ly best practices for recruitment are as
fo llows:
a. St ate the selection criteria clear ly in the job
advertisement. Selection crite ria shou ld be related to
job requirements.
b. Avo id stat ing age as a criterion in j ob advert isement
c. Publicize job vaca ncies through a variety of channe l~.
d. Im p lement age-friendly pol icies at every stage of the
recru itment process.
e. Adopt good techniqu es to recr uit and retain wo rkers.
2. Remuneration and benefits
Empl_ oye rs sho ul d adjust the ir remu neration and benefits
policie s so that they can meet both the needs of old
wo rkers and their organizat ions. er
a. Move toward a flexible performance -based wage
system.
b. Address medical costs .
c. Provide benefits, progr ams, and recognition.
3 · Job re-design and automation
Companies mecha nize and redesign jobs to make th
workp lace friendlier to old er worke rs and t · e c. Training to adapt to new work environment.
prod · · o increase
the fulclt1v1_ty
at the same tim e. Such measures may include
o ow ing:
a. st ream line wor k processes.
b. Enhance job wort h.
c. Make greater use of equ ipment and mach ines.
4. New work arrangements
By offeri ng alternatives to full -t im e work as we ll as
mentoring prog rams, companies can br in g out the best
in their older worke rs. These are some pract ices that
companies can implement to leve rage on th e experi ence
and skills of older w orkers t o meet t heir b u siness needs :
a. Flexible work arrangement s, such as flex i hours,
part-time work, co ntrac t work, and arrangeme nt s to
wo rk from home.
b. Jobs that leverage on the stre ngths of o lder
wo rkers-many co mp anies have found that o lder
wo rkers are better in dealing wit h people, and are
mo re patient and reliable.
5. Re-employment policy
The chance to move to j ob s wit h reduced pay and
responsibili ties rather than ret ire completely is an att racti ve
option for some o lder wor kers. Em p loyers w ill also gain
from cont inual access to th e wo rkers' skill s, network, and
experience. Companies may do the fo llowing:
a. Put in place employment arrangements beyond
age 62.
b. Re-negot iate wage s to reflect th e value of the j ob.
c. Re-negotiate benefits in line with new j ob
arrangeme nts.
6. Managing career transition
Companies shoul d provide counse ling and supporting
services in a tim ely manner so t hat old er workers can cope
with the changes. Services may include th e fol lowing:
a. Careerand retirement planning
b. Phased retirem ent
 e - ing Obiectives
Afte r studying th is chapte r, you should be
able to:
1. Outline the steps in the strategic
management process.
2 . Explain and g ive exampl es of each typ e of
company-w ide strategy.
3. Explain what a strategy-o riented HRM
system is and why it is im portant.
4 . Explain the ten steps in th e HR Scorecard
approach on creat ing the HRM system.

Chapter3
Strategic HRMand the
HR Scorecard
he Hotel Internationa l Group plans to
T expand globa lly. Its corporate strategy is
to use superior guest services to distinguish its
hotels from competitors. The aim is to increase
the length of stay and the return rate of
guests, thereby increasing revenue and profit.
HR Director Li now has to formulate the right
\
part
HRstrategy and introduce practices to support
-·
0
:::,
this corporate strategy.
This chapter focuses on strategic HRM.
It discusses how HR Director Li creates a HR
Scorecard and uses it to show the cause-
and-effect links among the HR activities, the
employees' performance, and the desired results.
 Part 1 ° Introduction

Strategic Management Process

Strateg ic plan - - ---._
A comp any's plan that
shows how it will match
its intern al strengths and
weaknesses with extern al
opp ortuniti es and threats
to maintain a competi t ive
advanta ge.
A strategic plan is th e co m pa ny's pla n th at sh ows how it w ill match its intern al
s tr eng th s and w eakn esses w ith ex tern al o pp o rtuniti es and thr ea ts to have a
co mp etiti ve adv ant age.
Th e bas ic st rateg ic pl annin g process invo lves ask ing qu est ions s uch as :
u W h ere are we now as a b us iness?
u Wh ere d o we wa nt to be?
o H ow sho uld we get the re?
Th e m an agers th en for mul ate stra teg ies to take the com pa ny from w here it is
now to w h ere they wa nt it to be.

I Carnpo.ng Or9ani:z.o.Jion I

--
....

A company'sstrategicplan should
havea clear view of where it is now
as a business and what role each
"And then the workers are here."
employeehas in the plan to achieve
the company'sgoals.

Seven Steps in Strategic Management

Strategic management
Process of identifying and
executing the company's
mission by matching its
capab ilities with t he
de mand of its environment .
Th e seve n steps in strategic management are as follows (see Figure 3.1):
v Define the curr en t bu siness
v Pe rfor m ex tern al and inte rn al aud its
t.1 For mul ate new bu siness and mi ssion state ment s
.., Tra nslate the mi ssion into goa ls
u Form ul ate str ateg ies to achieve the comp any's goa ls
v Im p lement the st rategy
v Eva lu ate per formance.

Step 1: Step 2 : Step 3: Step 4: Step 5: Step 6: Step 7:

Definethe Perform Formulate Translate Formul ate Implement Evaluate
current external new the strategiesto the erforman
business and ~ business ...
mission ~ achieve the strategy
and internal andmission into strategic
mission audits statements goals goals

Figure 3.1 Strategic planning

Stratesic Strate&ic
Suareg,r ManagemenrProcess execution evaluation
 3 "' Strategic HRM and the HR Scorecard

Step I : Define the current business

Every comp any mu st decid e w hat prod uct s or serv ices it w ill se ll, where it w ill
se ll them, and how they differ from tho se of its comp etitors. For examp le, Rolex
and Seiko are bot h in the wa tch bu siness. Rolex sells high-priced qu ality watc he s.
Seiko se lls inexpensive but inno vative watc hes w ith feature s like compasses and
altimeters.

Step 2: Perform external and internal audits

Ma na ge rs begin their plannin g by ana lyzi ng their exte rn al and intern al situ ations.
They do a SWOT analysis to identify the comp any's Strengt hs, Weaknesses, SWOT analys is --- ----
Op portuni ties, and Thr eats (see Figure 3.2). The use of a SWOT chart
to identify the company's
Strengths, Weaknesses,
Step 3: Formulate new business and mission statement Oppo rtuniti es, and Threats.
Based on the analys is, a compa ny decides what shoul d be its new bus iness, what
product s it w ill se ll, w here it will se ll them, and how its products w ill diff er from
those of its compet itors.

Step 4: Translate the mission into strategic goals

If the compa ny's mission is "to make qua lity products," what does this m iss ion
mea n, for ea ch d epa rtment, in ter ms of how to impro ve quali ty?

Step 5: Formulate strategies to achieve the strategic goals

A strate gy is a cour se of action. It shows how the compan y w ill move fro m the
pr ese nt bu sine ss to the new bu siness it want s to be in. The best strategy shou ld be
s impl e so that manage rs can eas ily exp lain it to their emp loyees. For exampl e, Wal-
Mart's str ategy is "Low pr ices, eve ry day."

Step 6: Implement the strategies

Impl ementation mea ns trans lat ing the str ategies into actio ns-s uch as hirin g
peop le, build ing p lants, and adding new prod uct lines. The p rocess invo lves all
the management functions: p lan, orga nize, staff, lead, and contro l.

Step 7: Evaluate performance

Strateg ies may not succeed because of changes in exte rn al factors. For examp le,
new trends m ay reduc e the demand for some prod ucts w hile increas ing th e
d emand fo r other s.
S trategic contro l is th e proces s of assess ing pro gress toward the goa ls and Strategic co nt rol - - ~
~ak ing corrective act ion. Managers always check w hether the comp any is me etin g Process of assessing progress
its strategic goa ls, and find out why dev iat ions exist. They stud y the new situat ion toward strateg ic goa ls and
(such as compe titors, techni cal ad vances, customer demog rap hics, etc.) and make taking correct ive act ion.
adju stme n ts.

Strengths Weaknes ses

Example: strong Example: aging
research group machinery

Q.uickQ.uiz
Threats
Example: mergerof 0 What is strategic managem ent
twocompet itors process?
to form single
strongone Figure 3.2 6 Outline the steps in this process.
... ~ A SWOTChart
 Part 1 u Introduction

Corporate
strategy

Business 1
l
Business 2 Business 3
Competitive Competitive Competitive
strategy strategy strategy

I I I
Figu re 3.3 Funct ional Functional Functional
Relationships among Strategies in strategies strategies strategies
Multi-business Firms

Types Of Strategies
As sho w n in Figure 3.3, m ana ge rs engage in thr ee ty pes of st rateg ics :
u Co rp o rate s tra tegy
v Co mp et itive st rategy
u Fun ct io n al stra tegy .

Corporate Strategy
At the comp an y-w id e leve l, a compan y m ay consist of seve ra l bu s inesses. For
exa mp le, Peps iCo run s Pe ps i, Fr ito -Lay, and Pizza H u t. Peps iCo therefo re nee d s
a co rp ora te- leve l str ategy. A co mp any's co rpo ra te-leve l stra tegy id en tifies the
w hole ra nge of bu s inesses th a t it is doi ng, and how these b us inesse s relate to one
anoth er.
As show n in Figur e 3.4, th ere are four poss ible st rateg ies :
u Divers ification
v Vertica l in tegr ation
v Co n so lid at ion
v Geog rap h ic ex p ans io n .

Figure 3.4
Corporate Strategies- Company-wide
Diversification Ve rtical integration
Company expands by adding Company expands by producing its
new product lines. own raw materials.

Ge ogra phic ex pansion

Company takes the business abroad.

Competitiv e - - ---
advantag e
Any factor that allows a
co mp any to d ifferentiate
Competitive Strategy
its product or serv ice from At th e next leve l dow n, eac h o f th ese bu s inesses needs a st rategy to b u ild a
those of its com pet itors to comp e titive pos itio n in th e mar ketp lace . For exa mp le, th e comp any's comp etiti ve
increase market share. advantage a llows it to d ifferentiat e its pro d uct o r service from th ose o f its
co rn pet ito rs.
 3 u Strategic HRM and the HR Scorecard

As show n in Figure 3.5, a compa ny ma y use the following strat eg ies to achieve
compe titive ad va nta ge : (a) cost leader ship , (b) differ entiation, (c) focus.

Corporate strategies - Business level

Costleadership Differentiation Focus

Aim to become low-cost Seek to be unique in its Focus on products that
leaderin the industry products or services customers cannot get from
competitors Figure 3.5
CorporateStrategies-Business Level

Functional Strategy
A company compri ses d epartm ents, such as manufac turin g and sa les . Functiona l
s trategi es ident ify the act ion that eac h dep art ment will take to help the compan y to
attai n its comp et itive goals.
The "HR in Act ion" se ction shows a syste m you can use to facilitat e yo ur
plannin g efforts.

HR in ACTION
L.,/ HR for Line Managers and Entrepreneurs
Using Computerized Business Planning Software
There are sev·eral bu siness planni ng soft ware package s available in the market.
They assist the line manager o r small business owne r in w ritin g busi ness plans. For QuickQuiz
exam ple, the softwa re may conta in all the infor mation and plann ing aids the user
needs to ·create a bu siness plan. It co ntains sample plans, step-by-step instruction O Explain the various types of
(wit h examples) for creating each part of a plan. The result is an integrate d plan, co mpany -wide strategies.
com pl ete wi th overall strategic plan, and charts-and tab les. u Give examples of each type.

HRM's RoleIn CreatingCompetitive

Advantage
To comp ete effec tive ly, the compa ny mu st have one or mor e co m petiti ve
ad va n tages. The comp et iti ve advanta ge can tak e many for ms . For a p harma-
ceuti cals co m pa ny, it ma y be the qu ality of its rese arc h team and its pat ent s. For
a softwa re compan y, it may be its specia l so ftwa re syste m .
Today, mo st co mpanie s have easy access to the same techno logies, so
tech nology itse lf is not eno ugh to be a competitive advantage . For exam ple,
Toyota d oes not ha ve man u facturing equipm ent th at is not avai lab le to Ford.
Wh y then is Toyota so much mor e efficient, and its cars of suc h high quali ty?
Watch ing Toyota' s se lf-managing assembly teams w ill sh ow th at at once. It is th e
emplo yees ' skill s and commitment, and the m.anagement sys tem th at produc es
the sk ills and commitm ent that make the diff erence.
 Part 1 u Introduction

HR in ACTION
Toyota's-Self-man age~ Teams
A visitor to a typ ical Toyota factory w ill soon disco ve r th e secr ets of its success:
e Small teams of high ly trained work ers insp ect and assess th eir ow n wo rk.
o They select their ow n team membe rs, intera ct w ith engine e rs and suppli ers to
imp rove co m pone nts.
· e They disc u ss prob lems with top man·agers.
o Th ey spend several weeks each year in training to upgrade skill s.
As a ·result, costs are low and quality is high. This is becau se th ese self-managin g
teams have the capacity and commitm ent to ~!ways do th eir be st.

Strategic HRM
Figure 3.6 sh ows th e int er pl ay be t wee n H R str ategy a n d th e co m pa n y's strateg ic
p l an s. Stra teg i c HR M m ean s fo rmul ati n g H R po li cies a nd int ro du cin g activ iti es
that p rod u ce the empl oyee compe ten cies an d be h av i o r s th a t the co m pa n y n eed s
to ac hi eve i ts goa ls.

Figure 3.6 Company's competitive

LinkingCompany-wide and
HR Strategies
environment
Source:© Gary Dessler, Ph.D., 2007. Economic, political
, demographic,
competitive
, andtechnological
trends
Company 's strategic plan
For example
o Should we expand geographically?
o Cuc coses?
Company' s strategic situation o Diversify?
A

Company_'
s internalstrengths
l
ancfweaknesses Company 's HR (and other
functional) strategies
What are the basiccoursesof action HR
will pursue coensure chat the recruiting,
Organizational performance selecting, training, appraising, and
compensation systems support the
company'sstrategicplan?

Effeaive HR managersare able

to handlea larger portfolio and
work closely with top management
to formulate and implementthe
company'sstrategic plans.

E><ecufio n

T herr
Now
 3 u Strat egic HRM and th e HR Scoreca rd

H RM'S StrategicRoles
QuickQuiz
Effective HR managers work closely with top management to formulate and
implement the company's strategicplans. They have two basic strategic planning roles: O What is a strategy-oriented HRM
system7
u Strategy execution
G Why is it important?
v Strategy formulation.

Strategy Execution Role

Top management formu lates the company's corporate strategies. Then, the HR
manag er designs policies, and introduces practices that fit into the company's
corpo rate strategies.

Strategy Formulation Role

The role of HR managers also includes working with top mana gement to formu late
the company' s stra tegic plans. Globalizat ion means more competition, and more
compet ition means the need to improve performance. Companies improve their
perfor mance by impro ving their employees' competence and commitmen t. In
this context, the input from the HR depar tment is very important.
HR managers are in a uniqu e position to supply information that is useful
for st rategic plannin g. Details about competitors' incentive plans, emp loyees'
opini on surv ey d ata about customer compla ints, employment laws and hea lth
insurance are some examples.

CreatingA StrategicHRM System

A strategic HRM system focuses on three main components (see Fig ure 3.7):
,; HR professionals who have the skills to build a strategy-oriented HR system.
u HR policies and practices on recruitment, selection, training, and reward .
v Employee behaviors and competencies that the company needs .
Figure3.7
Three Main StrategicHumanResource
TheHRfunction TheHRsystem Employeebehaviors SystemComponents
HR professionals with High Performance Work Employeecompetencies, Source: Adapted from Bna11Becker et al..
strategic management System (HPWS) consisting values, motivation, and The HRScorecard:L111k111g
People.Strategy.
----:1- and Pe,jorma11ce(Boston: Harvard
competencies of strategically aligned behaviors required by the
Business School Press, 2001), p. 12.
HR policies,practices,and company's strategic plan Copyright ff>2001 by the Harvard Business
activities School Publishing Corporation; all rights
reserved.

Thegreatest challengein
implementi ng new strategies is the
attitude of peoplein their respective
organizations.
 Part 1 u Introduction

HR in ACTION
i_ /
~
St rategic HRM in the Philipp ines
In 1995, the Personnel Management Association of the Philippines (PMAP)conducted
a study on the strategic HRM practices in the Philippines through a grant from the
International Labor Organ isation (ILO).
The stu dy ident ified four themes that were common in 40 leading companies.
These were:
o Prod uctivity and quali ty management
e Growth and expansion
o Organization build ing
O Technologica l in novation.
In th e area of prod uctiv ity"and quality imp rovement, HR·pract ices included those
that im proved the use of resources. Examples were quality circles, benchmarking,
affi rmi ng good _services; productivity gain sharing prog rams, and training.
The study also ide nti fied some barriers in implemen ting strategic HR practices.
They included resistance to change, int erpersonal difficu lties, clash with existing
systems, an.d lack of recog nit ion for HR function.The g reat challenge in implem enting
new strategies was t he att itu de of people in their respective organizations.1

High-Performance Work System

Ever y co mp any sho uld create a HR syste m th at f its it s need s. T here is a t rend
towa rd in sta l li ng HR sys tem s th at b road ly sh ar e m any characteri sti cs. T he aim o f
the se sy stem s is to m ax imi ze emp loy ees' co m p ete ncies and co mmi tme n t.
Figure 3.8 show s the ch ara ct eri st ics of a h ig h -per fo rm ance wo r k o rga ni za ti o n.

Figure 3.8
Characteristics
of a High-performance Empoweredworkers
WorkOrganization

Multi-skilled work teams

t Extensive training

Characteristics
of a High-
Performance
Work
Organization

,------ -~
Labormanagement
Customer satisfaction
cooperation

Commitment to
quality
 3 " Strategic HRMand the HRScorecard

Measuring HR's Effectiveness

Em p loy e rs expect their HR man age rs to introd uce HR act ivities that create va lu e
for the com pa ny suc h as more profit and bigger ma rket sha re.

HRmanagersneed to identifythe
required workfor ce behaviors that
''This is tJ-e lo.st h"me you have e)(ceeded your leave quota. will ultimatelycreate value for the
You r serv ices o.re no longer needed ." company

Translating Strategy into HR Policy and Practice

Strateg ic HR M mea ns HR m anage rs need to tra nslate the comp any' s stra tegy into
the reciu ired empl oyee comp etencies and behav iors . They must then translate
these reciuir ed e m ploy ee compe tencies and behavio rs into specific HR po licies and
p ractices th a t w ill achi eve the comp any' s goa ls. Th e bas ic proc ess is ou tlined in
Figure 3.9.

Formulate businessstrategy
"What are the strategicgoals of the business?"

Identifyworkforce requirements
"What employee competencies and behaviors muse
HRdeliver coenablethe business coreach its goals?"

Formulate HRstrategic policies and activities

"Which HRstrategies and practiceswill produce these
employee competencies and behaviors?"
Figure3.9
Basic Model of How to Align HR
, .,,, Strategyand Actions with Business
Develop detailed HRscorecardmeasures Strategy
"HowcanHRmeasu re whetherit isexecutingwell Source: Adapted from Garren Walker
and J. Randal MacDonald , "Design ing
ss,in termsof producing
forthebusine therequired
and hnpl emen llng an HR Scorecard .'"
workforce
competencies andbehaviors? " Human Resources Management 40,
no. 4 (200 I), p. 370.
Part 1 u Introduction

V Translating Strategy into HR Policies and Practices

The o rganizat iona l change at the Albe rt Einstein Hospital (AEH) is an exampl e of how
a company t ranslates strategic plans into HR policies and practice s. In th e 1990s, it
was clear to the AEH's new CEO that competition, technologi cal change s, and the
growth of the healthca re indust ry meant that his company needed a new strategic
plan. At that time , AEH was a single acute care hospital, treating only tne seriously ill.

New Strategy
The CEO's new strategy was to change }\EH into a healthcare network to provid e a
fu ll range of-hig h-qua lity services. He knew that to make th is cha nge, the new AEH
would need a more flexible, adaptab le, and professional approach in delivering
services.
Based on that, he summa rized the strategic goals in three words: "initiate ;"'adapt,"
and "deliver'.'Toachieve these aims, employees must prod uce new services (initiate},
seek opportu nities (adapt}, and offer high-quality services (deliver). ·
. .

New Employee Comp etencies and Behaviors

The CEO'snext q uestion was, "What kind of emp loyee competencies and behavior s
wou ld AEH need-to produce the se th ree outcomes? "
- Working wi th the head of the HR Depart ment, th e CEO chose four employee
competencies and behaviq rs:''.dedicated, acco untable, generat ive, and resilient:·
Employees m ust:
u be dedicated t_o AEH's foc us on initiating, adapt ing, and delivering.
u take personal acco untabil ity for th eir results. ·
_o apply new knowledge and skiils and look for innovative solutions.
u be w illin g to move from job to job as the company's needs change.
New HR Policies and Practices
Given these desired employee competenc ies and behaviors, AEH's HR manager s
implemented several new prog rams to:
·v ensure that em ployees clearly understood the company's new visio n.
u provide emp loyees with mo re challenge and respo nsibility thr0ugh flexib le
assignments and team-based work. _
u help em ployees take personal responsibility for their own personal
developme nt.
link employees' rewards to results _and provide non -mo netary rewards.
In summary, managers at AEH translated the new strategy into specific HR po licies
and practices. T_hese managers used a sim ple and logical process to translate strategy
into the requi red HR polic ies and activ ities. This is perfectly acceptab le. Increasingly,
howeve r, many. companies are using a new me th od called the HR Scorecard Process.
We explain t hat approach in HRToday ~:mpage 65.

Questions
1. Why w as there a need for the new CEO of AEH to int roduce organiza tional
changes? · ·
2 . Explain the fou r com pete ncies as identified by the CEO.
3. Discuss the programs that we re int roduced to achieve these fou r compete ncies.
 3 u Strateg ic HRMand the HRScorecard

CHAPTER SUMMARY
1. In formulating their HR strategies, HR managers must address three basic challenges:
a. The need to support corporate productivity improvement efforts

\ b. That employees play an expanded role in the company's performance improvement efforts
c. That HR must be more involved in designing-not just executing-the company's strategic plan .
2. There are seven basic steps in the strategic management process:
a. Define the business and its mission
b. Perform an external and internal audit
c. Formulate new mission statements
d. Translate the mission into strategic goals
e. Formulate a strategy to achieve these goals
f. Implement the strategy
g. Evaluate performance.
3. There are three main types of strategic plans:
a. The company's corporate-level strategy that identifies the company 's whole range of businesses
and includes diversification, vertical integration, consolidation, and geographic expansion
b. Each business needs a business level competitive strategy: differentiation and cost leadership are
two examples
c. Each individual business is made up of departments that require functional strategies. The latter
identify the action that each department will take to help the business attain its goals.
4. A strategy is a course of action. It shows how the company will move from the business it is in now to
the business it wants to be in.
5. Strategic HRM means formulating and executing HR systems that produce the employee competencies
and behaviors the company requires to achieve its strategic goals.

l
6. The high-performance work system is designed to maximize the overall quality of human capital
throughout the organization. It provides a set of benchmarks for HR managers to compare the
structure, content, and effectiveness of their HR system.
7. The process of aligning HR strategies with business strategy has four steps:
a. Formulate the business strategy
b. Identify employee behaviors needed to produce the outcomes that help the company to achieve
its goals
c. Formulate HR policies and actions to produce these employee behaviors
d. Develop measures (metrics) to evaluate the HRdepartment 's performance.
8. The HR Scorecard process has seven steps:
a. Define the business strategy
b. Outline the company 's value chain
c. Identify the required organizational outcomes
d. Identify the required workforce competencies and behaviors
e. Identify the relevant HR system policies and activities
f. Design the HRScorecard measurement system
g. Evaluate the measurement system.
9. The HR Scorecard is a system showing the quantitative standards that a company uses to measure:
a. HR activities
b. Employee behaviors resulting from these activities
c. The relevant organizational outcomes of those employee behaviors.

KEYTERMS
competitive advantage , 54 strategic plan, 52
HR Scorecard, 65 strategy, 53

l metrics, 65
mission, 52
strategic control, 53
strategic human resource management , 56
strategic management, 52
strategy map, 66
SWOTanalysis, 53
value chain analysis, 67
vision, 60
 Part 1 "' Introduction

•I
I
I
DISCUSS!
1. What is the difference between a strategy and a mi ssion? Give one examp le of each.
2. Define and give at least two examples of cost leadership compet it ive strategy and differentiation
-~
competitive strategy.
3. Explain how HRM can help a compa ny to create a compet it ive adva nt age.
4. What is a high -performance wo rk system? Discuss specifi c examp les of the elements in a high -pe rformance
~
wo rk system .
5. Define w hat an HR Scorecard is. Briefly explain each of the seven steps in the HR Scorecard approach to
I
I

create a strategy-or iented HR system.

I
I

•••••••••••••••••••••••••••••••••••••••••••••••••••• I
INTERACT! I
ACTIVITY 1 With thr ee or fo ur other student s, form a strategic man agemen t group for your coll ege
or university. Your assignment is to develop th e outline of a strategic plan for the college or uni versity. Thi s
shou ld includ e details such as mi ssion and vision stateme nt s; strateg ic goals; and corpora te, competitive, and ~
func t iona l strateg ies. In preparing yo ur plan, make sur e to show the main str engths , weak nesses, opportunities,
and threats the college faces, and whic h prompted you to develop yo ur particular str ateg ic plans.
I
I

ACTIVITY 2 Using th e Internet or libr ary resourc es, ana lyze th e annua l report s of five compan ies. Bring t?
I
I

class example s of how tho se companies say th ey are using th eir HR processes to help the company achieve th eir
strategic goa ls. I
I

ACTIVITY 3 Intervi ew an HR manager and wri t e a short rep ort on the topic: "The strateg ic roles of the I
I
HR m anage r at XYZ Compa ny."
I
I
ACTIV~TY 4 Using the Int ernet o r libr ary resources, bring to class and discuss at least two examples of how
com pani es are using an HR Scorecard to help create HR systems t hat suppo rt the co mp any's strategic aims. Do
all manage rs mean t he same thing when they refer to " HR Scorecards"? How do th ey diff er?
~
•••••••
I
I
• •••••• •• ••• •• ••• •••••••••••••• • ••• •••••• ••••
USE YOUR HR SKILLS!
~
Siemens Builds a Strategy-Oriented
Siemens is a 150-yea Id G
HR System
- I · I d
I
1 th r-o erman company. Until recently, Siemens focused on producing e ectn ca pro ucts.
oday e co mpany has d iversified into software engine ering and serv ices. It is also global , w ith over 400,000
emp loyees working in 190 countr ies. In othe r w~ rds, Sieme ns' becam e a wo rld leader by pur suin g a corporate
st th
rate ~y at emphas ized d iversifyi ng int o high -t ech products and services, and doing so on a g loba l basis.
1th
~ a cmporate st rategy like th at, g lobal HRM pl ays a big role at Siemens . Sophisticat ed eng ineerin g and
ser vic~s r~quire m?r e focus on emp loyee selectio n, training, and compensatio n than in the average compa ny.
Glob alizat ion req ui res de liver ing th ese servic es in many countries. Sieme ns sum s up the basic t hemes of its HR
strat egy as follow s:
1. A living company is a learning company
The h igh-tech nature of Sieme ns's busin ess means that employe es must learn on a co ntinuing basis. Siemen s
uses it s system of comb in ed cla ssroom and hands-on apprentices hi p t raini ng around th e wo rld to facilitate
th is. It also off ers emp loyees extens ive co ntinuing edu catio n and m anagem ent developm ent.
 3 v StrategicHRMandthe HRScorecard

2. Global teamwork is the key to developi ng and using all the poten tial of the company's human resources
Because it is impo rt ant for emp loyees t hroug hout Siemens to work together, they must understand the
whole process, not just bits and pieces.To support this, Siemens prov ides extensive train ing and deve lo pment.
It also ensures that all employees feel t hey are part of a strong, unifying company . For example, HR uses
cross-border, cross-cultu ral experiences as prereq uisites for career advances.
3. A climate of mutual respect is the basis of all relati onships-within the company and with society
Siemens believes t hat the wealt h of diffe rent natio nalities, cultures, languages, and outlooks represented
by its emp loyees is one of its most valuable assets. It therefore engages in numerous HR activities aimed at
bu ildi ng open ness,t ransparency, and fairn ess,and suppor ting dive rsity.

Qu estion s
1. Based on the info rmat ion in this case, prov ide examp les, fo r Siemens, of at least four strateg ically required
organizationa l outcomes, and four required employee competencies and behaviors.
2. Ident ify at least fo ur strategically relevant HR pol icies and activit ies that Siemens has int roduced for
employees to cont ribute to achieve the com pany's goa ls.
3. Write a brief outl ine of a HR Scorecard fo r Siemens.

• 0 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

EXPERIENCEHR!
Developing HRStrategy for Starbucks
Purpo se
The purpose of t his exercise is to help you to develop an HR strategy for Starbucks or a similar food outlet.

Requir ed under standing

You should be fam iliar wi th th e materia l in this chapter, includ ing t he "AEH" HR strategy examp le and Figure 3.9.

Setting up th e exercise
Form groups of t hree or four students fo r t his exercise. You are probab ly already familiar with what it is like to
have a cup of coffee or tea in Starbucks or a local coffee hou se. If not , spend some time in one before doing
t his exercise. Meet in groups and develop an outl ine for an HR strategy fo r Starbucks or your local coffee house.
Your out line shou ld include t hese fou r basic elemen t s:
1. A basic business compet itive strategy for Starbucks
2. Identify workforce requ irements (in terms of employee competencie s and behavio rs) that thi s strategy
requires
3. Specifi c HR policies and t he act iviti es necessary to produce t hese workfo rce requ irements
4 . Suggestions for metr ics they could use to measure the successof the HR strategy.

•••••••••••••••••••••••••••••••• ••••• •• ••••••• ••• •••

-~ Laundry Company

A CONTINUING CASEIN EVERYCHAPTER

•..
The high -performance work system
As a fr esh gradua t e and a person who reads business magaz ine s, KK's Consulting Manager Jen Ko is
fam ili ar w ith t he benefits of programs such as tota l quali ty managemen t and high -pe rforma nc e work
system.
Her father Jak Ko has already installed a tota l qua lity prog ram, and it has been in place for about five years.
This program takes t he form of employee meeting s. Jak holds employee meetings periodi cally, parti cularly
Part 1 u Introduction

when there is a serious problem in a store-such as poor quality work or machine breakdown. When problems
like these arise, instead of trying to solve them himself or w ith Jen, he contacts all the emp loyees in that store
and discusses with them as soon as th e store closes.
The meetings have been useful in helping Jak to identify and solve several problems. For example, in one
store all the white blouses were coming out looking dirty. It was because the cleaner had ignored the company
rul e that required removing (by "boiling down") the special cleaning fluid before washing items like these. As a
result, these white blouses were being washed in a cleaning fluid that had dirt from earlier washes.
Jen was de lib erating whether these employee meetings should be expanded to give the emp loyees a
bigger role in managing the company's quality.
"We can't be everywhere watching everything all the time," she said to her father. "Yes, but w ill these people
want to act like mini-managers?" he replied.

Questions
1 · Wou ld you recommend that the company expand its quality program? If so, what form should it take?
2 · Assume t~e company wants to introduce a high-performance work system as a test program in one of th e
stores. Wnte a one-page out lin e summar izing what the program would consist of.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Endnotes
1. Austero, Schubert (1996) "Strategic Human 2. Becker, Brian, Huselid, Mark, and Ulrich, Dave.
ResourceManagement in the Philippines;' The Asian 2001. The HRScorecard:Linking People,Strategy, and
Manager, October-December, 8- 10. Performance.Boston: Harvard BusinessSchool Press.
• • • • • • • • • • • • • • • • • • • • • • • • • 0 • • • • • • • • •
...........
 3 v Strategic HRM and the HR Scorecard

A
s discussed in an earlier section, the managers at Albert Einstein Hospital (AEH) used a simple and
logical process to translate strategy into required HR policies and activities, and this is perfectly
acceptab le. However, many companies are now using a more rigorous method called the
HR Scorecard proce ss.We explain that new approa ch here.

What is an HR Scorecard ? The 10-Step HR Scorecard Process

Manage ment judge s the HR function based on whether it
, creates value for the company and "value creation" means
contributing in a measurab le way to achieve the company's
goals. HR managers can create value by promoting activities
th at produce th e em ployee behavio rs th e company needs
to achieve it s goals.
The question is: ho w does one outline th ese
inte rrelati o nship s, and attach measurable performance
standa rds to each? Managers use HR Scorecard process to
do this.
The HR Scorecard is a measurement system. It shows
the qu ant itativ e standards o r ''.metrics" that th e company
uses to measure:
u HR activities
u Employee b ehaviors resulting from these activities
u Relevant organizational outcome s of th ose emplo yee
beh avior s.
In so doing , it highli ght s t he causal link bet ween the HR
act ivit ies, employee behavior s, and the resulting company -
wide strateg ic outcom es and performa nce.
Information for Creating an HR
Scorecard ·
To create an HR Scorecard, managers need thre e t ypes of
information:
u They mu st know what th e company's strategy
is, becau se th e strategy will det ermin e what the
emp loyee behaviors and imp orta nt organ ization al
outcomes are, and how th e company will measure
organ izat io nal performance .
" Managers must understand the causal links between the
HR activities,the employee behaviors,the organizational
outcomes, and t he organization's performance. (Figure
3.1 o summar izest he sequence involved.)
'-' Manag ers need metr ics to measure th e HR activiti es,
the emp loyee behaviors, the relevant organizationa l
outcomes, and the organ izationa l performance.
The 10 st ep s in the HR Scorecard process is show n in
Figure 3.10 (partly adapted from Becker et al. 2001 ).2
HR Performance Measures
Table 3.1 shows some performance measures. Measures
like these serve two fun cti o ns:
11 They help the company to assessthe HR team's
performance.
1.1 They help t he HR ma nager to build a measurab le and
persuasive bus iness case.
HRScorecard
Strategy and Results-Hotel International
Let us see how thi s Scorecard process works by di scussing
the case of Hote l Internationa l (HI).
Start ing as a sin g le hot el in a Paris suburb in 1990, the HI
now has a chain of hotels in maj or citi es in Europe, Asia, and
North America. As a corporate strategy, Hi's managemen t
and owners want to expand geog raphically. They believe
that by doing so, they can capita lize on th eir reputat ion
for good service. The problem is, th eir reputat ion for good
service has not been very good . If t hey cannot improve
service, it would be unw ise t o expand.
The Strategy
The top management team has chosen a new comp eti ti ve
strategy and formu lates new goals. It has decid ed tha t:
"Hotel Int ernat ional will use sup erior g uest services to
diff erentiate it s hote ls from compet ito rs. The aim is t o
in crease th e length of stay s and the return rate of guests
in orde r to increase revenu e and profit." All HI managers-
in cluding the director of HR services- must now form ul ate
strategies that supp o rt this corporate strategy.
Figure 3.10
BasicHRScorecard
Relationships

Strategically relevant
~ Emergent employee ~ Organi zational Achieve
HR activities organ izational
behaviors performance strategicgoals
outcomes
_.

- .- -- -- - -------- -- - --- -- - -- - ---- -- - - - - - - -- ---- ---- -- - ~~ ----

 Part 1 ., Introduction

Formulate Business
Strategies @ Definethebusiness
strategy

l
@ Oudinethecompany
's value chain activities

l
@ Oudinea strategymap

l
© Identifythe strategicallyrequired organizational
outcomes

Identify Workforce
l
Requirements @ Identifythe required workforcebehaviors

Formulate HR Policies
@ Identifythe strategically
l
relevantHRsystempoliciesand
and Practices
activites
, suchas newtrainingandgrievancesystems

l
® Create HR Scorecard

Develop Detailed
l
"Scorecard"Measures @ Designthe HRScorecard measurement system

l
@ Summarize Scorecard measures in digital dashboard

l
@ Periodicallyre-evaluate the measurement system

Figure 3. 11
Ten Steps in the HR Scorecard. Approach to Formulating HR Policies,Activities, and Strategies
Source: © Gary Oessler, Ph.D.
 3 u Strategi c HRM and the HR Scorecard

Table 3.1 Sample HR Performance Measures

Samplemeasuresforassessingemployeecompetenciesand behaviors,such as employee motivation and morale, and
for assessingHR activities.
Employee attitude survey results
Emplo yee turno ver
Extent to wh ich strategy is clearly articulated and well unde rstoo d throughout the firm
Extent to which the average employee understands how his or her job contributes to the firm's success
Level of cross-cultural teamwork
Level of organizational learning
Extent to wh ich employees are clear about their own goals
Percentage of employees m aking suggestions
Employee productivity
Requests for transfer to superviso r
Extent to which the emp loyees can describe the company 's core values
Employee co m mitment survey scores
Custome r complaints/p raise
Percentage of retent ion of hig h-performing key emp loyees
Requests fo r transfe r per emp loyees
Percentage of employees making suggestions
SamplemeasuresforassessingHRsystemactivitiessuchastesting, training,and reward policiesand practices
Proportion of employees selected based on validated selection methods
Number of hou rs of training employees receive each year
Proport ion of merit pay determined by formal performance appraisal
Percentage of workforce regularly assessed via a form al performance appraisal
Percentage of employees eligib le for annua l meri t cash or incent ive plans
Extent to which infor mation is communicated effectively to em ployees
Percentage of wo rkforce w ho received a performance feedb ack from multi ple sou rces
Percentageof difference in incentive pay between the low-performing and high-performing employees
Percentage of the workfo rce routine ly w orking in self-managed or cross-functio nal o r proj ect teams
Number of qualified app licants per position
Percentage of jobs filled fro m within
Source: Adapted from Bria n Becker, Ma rk Huselid, and Dave Ulrich, The HR Scorecard (Boston : Harvard Business School Press, 200 1 ).
p p. 16-17, 63, 64, 66, 7 1. Cop yright ©2001 by th e Harvard Business Sch oo l Pub lishin g Corp ora tion ; a ll rights reserved .

The Value Cha in

Based on discussion w ith othe r managers, the HR Director the "product " is sat isfied gu ests. Produc ing satis fi ed gue sts
Li has ou t lin ed the company's value cha in (see Figure 3.12 ). requires attendin g to all act iv it ies alon g the hote l's value
This shou ld help her to identify HRacti vities that are crucial chain that affect t he guests' experien ce.
in helping th e hotel achieve its goals. In a service business,
Part 1 u Introduction

HR~TODAY ...
For the hote l, there are:
1.1Inbound logistics activities such as getting guests from
the airport and having them checked in at the hotel.
u, Operatio n activities such as cleaning guest rooms
• Outbound log istics activities such as picking up
baggage and getting the guests checked out.
u Marketing activities to att ract guests to t he hote l
u Service activities that provide post-stay services, such
as trave l awards to guests for mu lt iple stays
u Ot her supp ort activities, such as purchasing,
informatio n systems, and HR.
The Required Organizati ona l O utco mes
The hotel 's basic strategy is to use superior guest services
to expand globally . Each step in the hotel 's value chain
provides opportunities to improve guest service. For HR
Director Li, it is clear that achieving the hote l's aims means
achieving the following organizational outcomes:
• Fewer customer compla ints
- More wr itten complime nt s
• More guest returns and longer stays
Higher guest spending per visit.
Relevant Workfo rce Competencies
a nd Behav iors
The question facing Director Li is this: What are the
competencies and behavior s that the hotel's emp loyees
must have, if the hotel wants to produce required
organizational outcomes such as fewer customer
comp laints, more compliments, and more guest returns?
Going over the activities at each step in the hote l's value
chain helps her to answer that question.
For examp le, the required emp loyee competencies and
behaviors would include the following:
o Provide high-quality front-desk customer service
e, Take calls for reservations in a friend ly manner
" Greet guests at the front door
" Processguests' room service meals efficientl y.
Relevant HR System Poli c ies and Ac tivi ties
The HR Director 's task now is to introdu ce HRactivities that
w ill produc e these crucial employee compete ncies and
behaviors. ·
As one example, "high-quality front-desk customer
service" is one such required behavior. From this, the HR

Figure 3.12
SimpleValue Chain for "Hotel International"

Sa mple Ma rketing & Guest Inbound In-room Amenities

Primary sales reservations guest services
Activities in service s
the Hotel Advertising 0 Takecalls e Clean rooms 5-starfood&
o Airport pickup
Internatio nal by 3••ring service
Value Chain
40 Salesclerk ~ o Professional o Front door 24-hour room Expertpersonal
training handling of welcome& service trainers checkout
questions unloading
Airportvans
every10 min.

Market research o 3-min. faxed t, Quick frontdesk o 200-channelTV 24-hourpool Bellhop

servf
ci
reservation service

i t t t
Human resourcemanagement
Support
Recruitment, selection, training,appraisal, and compensation
Activities
t
General admin istration
General management, accounting, safety, and maintenance

t
Technology
Computer systems, phone and Internet systems, and TV services
 3 v Strategic HRMand the HRScorecard

.
-~11-;,· ..
-•i...
. '

•
. · ..fr,
l. ,. ...

5. Strategic Rankings in Profit margins Percent share of Annual revenues

pe rfo rma nce industry service and total annual market
metri cs satisfaction profits
(Arewe achieving surveys
our strategic goals?)

T
4 . Strat egicall y
1
Guest service Number of written guest Various customer and
relevant customer satisfactionindex compliments and/or Hotel International
and o rganizational complaints per year outcome metrics,
outcom es metrics including:
(Howcan we measure frequency of guests'
whetherour customer returns;averagelength
serviceisactually of stay;and guest
improvingand having expenditures per guest
the desiredeffects?)

1 1 I T
per stay

1 t
3 . Strategicall y Employee Employeemorale Variousemployee Employee Percentageof
relevant turnover service-oriented service employees
emergent behaviormetrics, commitment and scoring at least
employee engagement 90%on Hotel
including:percent
capab ilities and index International core
calls answeredwith
behaviors valuesquiz
required greeting;
metrics
(Whatskillsand speed of check
actionsmust in/out; percent room
ouremployees cleaninginfractions;
demonstrate if our and percentguests
companyisto achieve receiving Hotel
itsstrategicgoals?) International required
greetingon arrival

I
2. Strategic HR
activitie s metrics
Part I
- -- --- __._______
,--

Part II Recruiting Part Ill Training Part IV Part V Employee

Introduction and Selecting and Appraising Compensation Relations and
(WhatHR/unction Suchas:no.of Suchas:110. of Suchas:%of Safety
shouldwefocus on, applicants;
% of hourstrainingper workforceeligible Such as:accident
and how shouldwe employeeshired employee;no. of for meritpay costsper year;no.of
measureits efficiency basedon test employeesappraised grievancesper year
and effectiveness
?)

t
1. Hotel International Createservice-oriented Embedcorevalues Encouragepersonal Emphasizepartnership
ba sic strategic themes workforce employeegrowthand and senseof ownership
(Whatbasicthemes , learning
... ..." ""I ,u(l .....

~·
must wein HRpursueto I~
helpHotelInternational .... ·" w 1-at: ,..._.
~ _,_.,... I
• .. w
- --~
1,,r1,,,.,~ ~

-..4111, -=-
achieveitsstrategicgoals?)
-:-r '.It~ ,J' ,... J r

Figure 3.13
P1111r~~
HRSco1cc1rrJ tor Hotellnterna110na1
·
·Note· An abbreviated example showingselected HRpracticesand outcomes aimed at implementing the competitive strategy,"Touse superior guest
servicesto differenuate the Hotel International properties and thus increase the length of stays and the return rare of guests, and thus boost revenues and
proficab1li
ry and help the firm expand geographically"

- . - -- . ··- - - - - - I
 Part 1 "' Introduction

Table 3 .2 Exampl es of HR System Act ivities the Hot el Int erna tional can Mea sure as Relate d to Each Chapte r
in this Book
Chapter Strategic Activities Metrics
2. EEOC Numbe r EEOCclaims/year; cost of HR-related litigation; percent minority/women promot ions
3. Strategy Percent employees who can quote company strategy/v isio n
j 4. Job Analy sis Percent employees with updated job desc riptions
I
i
i 5. Recruiting Number ap p licants pe r recruiting source; nu m ber qual ified ap plicants/p osit io n
i
I 6. Testing Percent emp loyees hired based on validated employment test
j
7. Interview Percent applicants receiving structur ed interview
i
i 8. Training Numb er ho urs tr aining/e m p loyee/ye ar; n umb er hours tra ining new employee
l
iI 9. Appraisa l Number emp loyees getting feedback; percent app raisals completed on time
I 10. Caree r Mgmt. Percent employees with fo rmal career/deve lopment plan
i
I
! 11. Compensation Target percentile for total compensation (pay in top 25 per cent)
12. Inc entives Percent workforce eligible for me rit pay
\
I 13. Benefits Percent employees 80 percent satisfied with benefi ts
iI 14. Ethi cs Numbe r grievances/yea r; pe rcent emp loyees able to quote ethics code
15. Labor Relations Percent workfo rce in unions
16. Health and Safety Nu m ber safety training program s/ year; $ accident costs/year; ho u rs lost time due to accidents
17. Global Percent expatriates receiving predeparture screening, co unseling
Overall HR Metr ics HR cost/employee; HR expense/total expenses; turnover costs
·Note: An abbreviated examp le show ing selected HR pract ices and out com es aimed at imp lement ing th e co mp et itive stra t egy, "To use super ior
guest services to d ifferent iate t he Ho tel Inte rnaciona l prope rties and thus increase the le ngth of stays and the return rate of guests, and thu s boost
revenues and profitabi lity and help th e firm expan d geog raph ically:·

Director identifies HR activ iti es to produce such front-
desk customer serv ice efforts. For examp le, she decides to
introduce practices to improve the disciplina ry fairness in
the company, w ith the aim of improving employee mora le.
H_er assumption is that enhanced fairness wil l produce
higher morale and that higher morale wi ll produce better
front-desk serv ice.
HR Scorecard
Next, the HR director creates an HR Scorecard . Th is shows
the cause-and-effect links among the HR act ivities
e~p loyed behaviors, and the organizat ional outcome;
(Figure 3.13 shows the overall HR Scorecard for Hotel
International).
This . scorecard and it s link ages reflect certain
assumptions on the HR Director's part. For examp le based
0 . '
n experience and discu ssion with the other managers , she
formulates the follow ing hypothesis about how HR affec t s
hotel performance: Improved grievance proced ures cause
improv ed mora le, which leads to improved fr o nt-d esk
service, which in turn leads to in creased guest returns,
w hich fi nally leads to improved financial p erformance .
The HR director then cho oses met rics to measure each of
th ese factors. For example, she decides to measure t he
follow ing:
" "improved disci plin ary procedures " in terms of how
many grievances emp loyees sub m it each mon th
" "improved mora le" in te rms of"scores on the hotel's
semiannual attitude survey"
u "high -qua lity front-desk custome r serv ice" in terms of
"custo m er comp laints per month :'
She then quantifies the cause-and-effect links among t hese
measures. If she can show the top management that there is
a measurab le, sequent ial link betwee n improved d isciplinary
procedures, high morale, improved fron t- desk service, numb er
of guest return visits, and the hotel's profit, she has a strong case
to say th at HR has contrib uted to the hotel's performance .

I
I

L -- . -~ - . - - -- - • -- - - -- ·-- - - - -- - - -· - - -- - - - - - - - - - - - ---

. .,-~-··I ..."""'·.
~•,··:"
,. .'
,
. J. ' * '' ~
& ..,__ I --
How We Will Use the HRScorecard
In reality, computerization enables the HR director to
create a more comprehensive HR Scorecardthan the one
in Figure 3.13 , one that might accommodate links among
dozens of cause-and-effect metrics.
For example, with computerization, the HR director
need not limit herself to assessing the effects of the
handful of employee behaviors alone (such as percentage
of calls answered on time) in Table 3.1 . Instead, she could
include metrics covering other activities, from recruitment
and selection through training , appraisal, compensation,
and labor relations. Her HR Scorecard model could also
include the effects of these activities on a wide range
3 ti Strategic HRMand the HRScorecard
of emp loyee competencies and behaviors, and on the
company's performance. In this way, her HR Scorecard
wou ld become a comprehensive model that adds value to
the hotel performance .
We will use a "Strategy and Results-Hotel
International Case"in the end-of-chapter material of each
chapter start ing with Chapter 4 to show how the hotel 's
HR director uses the concepts and techniques from that
chapter to create a HRM system that helps the hote l to
achieve its strategic goals. Table 3.2 presents some of
the metrics that the director could use to measure HR
activities.
Part 1 v Introduction
Partl
Video l : Introduction to HRM and
Strategic HRM
Video Title: Showtime
Show ti me Netw ork s Co rp ope rat es cab le netw ork s and
pay-per-v iew cab le chann els in several co untri es. As
t hi s vi deo illu st rat es, it s HR fun cti o n supports co rpo rat e
strategy by helping to determ in e w hat kind of em ployees
are need ed to kee p th e com pa ny in top pe rfo rma nce,
and t hen by pro vi d ing em pl oyees w ith t h e HR acti v iti es
t hat t hey need to d o t heir jo bs. For exam pl e, yo u w ill see
t hat Showt im e offer s ma ny deve lopme nt and t rain ing
prog rams, as we ll as personal deve lo p me nt typ e act ivit ies
includin g me nt o rin g pro g rams and caree r-ori ent ed
d evelop me nt act ivities. The co mpan y's perform an ce
manageme nt process (w hi ch t he empl oyees helped to
develop) focuses specifica lly on th e acti vit ies th at help t o
achi eve depart ment al and corpo rate go als.
In th is video, Matt hew, t he fi rm's CEO, em phasizes th at
it is essentia l to use HR as a strateg ic part ner, and th e video
t hen go es on to prov ide a sum mary of t he basic HRM
fu nctio ns.
Discussion Questions
1. What evide nce do yo u see in t his video t hat HR at
Showt im e helps t he company to achieve its strategic
goals?
2. What specific HR fu ncti ons does the video ment ion ?
-
-.- -
tl'I
3. Why do you t hink management at Show tim e places
such a heavy emph asis on personal develop ment
and qualit y of w ork issues such as ope n doo r policies,
mento rin g prog rams, and allo wing emp loyees to
exchange jo bs?
Video 2: Managing Equal Opportunity
and Diversity
Video Title : IQ Solutions Corp
IQ Solut ions Co rp is a company t hat provi des healt h-
care system services. The comp any uses its very dive rse
empl oyee base to better serve and att ract a broad clie nt
base. Emp loyees at IQ Solut ions wo rk toget her in teams to
achieve t he comp any's goals.
As we see in t hi s vid eo, th e compa ny itself is ve ry
dive rse. For exampl e, em pl oyees speak abou t 18
languages . The compa ny capi tali zes on th is d iversity in
many ways. For exam pl e, t hey let emp loyees share t heir
et h nically uniqu e ho lid ays, and prov ide special tr ain ing
and o t he r b enefits th at supp ort d iversity.
Discussion Questions
1. To w hat extent d oes d iversity management at IQ
Solut ions Cor p con t ribu te to t he com pany goals?
2. Based upo n wha t yo u read in th is part of th e bo ok,
whic h d iversity managemen t p rog rams can you
identify in use at IQ Soluti ons Corp?
 Learning Obiectives
After studying th is chapter, you should be able
to:
1. Discuss the nature of job analysis,what it is,
and how it is used.
2. Know how to collect j ob analysis
information, including interview,
questio nnaire, observation, and
participant's diary.
3. Write j ob descriptions, job sum m aries, and
job specifications.
4. Explain what job analysis is, wha t it means,
and how it is done in practice?
5. Explain w hat competence-based job
analysis is.
 part
Chapter4
Job Analysis ...
C
-·
.....
A
s an experienced professional, HR
Director Li of Hotel International
descriptions, all her HR improvement
wou ld be wasted.
effort 3
(D
knew that recruitment and selection wou ld
influence employee competency and
behavior, and through them , the company's
After all, if you do not know the duties,
responsibilities, and requirements of a job,
how can you decide who to hire or how to
.....
:::,
profit. Everything about the workfo rce-its train them? To produce the kind of employee
C
:::,
collective skills, morale, experience, and
motivat ion-depended on attracting and
competencies and behaviors that the hotel
needed to achieve its goals, the first step was a.
retaining the right employees.
When she reviewed the hotel's
emp loyment system, she found that most
to have descriptions for all the jobs.
The following short opening case show s
the im portance of job descriptions. Before
-
-c
C
of the hotel 's job descriptions were out of writing a job description , managers need to 0
date and that many jobs had no description do a job analysis.That topic is the focus of this (D
at al l. She knew that without accurate job chapter.
3
(D
:::,
.....
 Part 2 o Recruitment and Placement

BasicsOf JobAnalysis
In a ny or gan izat io n, the re a re like ly to be m any jo bs. An d these jobs a rc d o ne by
d iffe ren t p erson s. So m e job s a re cle rica l or te chni ca l w hil e o the rs a re m a nage ria l.
Job a n alysis is the p rocedur e to d ete rm ine the d u ties o f peo p le d o ing these jobs,
and th e kind of peo ple need ed to d o these jobs. Job a na lys is p rod u ces infor m a tio n
need ed for wr itin g job d es cri ptio ns (a list o f w hat the job is abo u t) a nd jo b
sp ecificatio ns (w hat kin d of peo p le to h ire for th e job) .

What Type of Information is collected?

By us ing job ana lys is, H R spec ia lists collect th e follow ing in form a tio n (se e
Figure 4.1):

' Huma n requiremen ts

anclskills
Knowledge , personal
attributes
"'
Work activities
Cleaning, selling, painting
(includes how, why,and when
worker performs each activity)
t Job context
Physical working conditions
and work schedule

Information
Collected by HR
Specialists
Skills Performance standards
Co.n:imun
icating,deciding. Quantity,quality levels for each job
Wntmg

Figure 4.1
Information Collectedby HR Machines
Specialists Tools, equipment, and knowledge
needed

Job analysis - ----
The proced ure for
dete rmining the duties and
skill requ irements of a jo b
and the kind of person who
should be hired for it.
UsesOf JobAnalysisInformation
As summa rize d in Figure 4.2, empl oyer s u se job ana lys is in form ation to su p po rt
seve ral HR activities such as the follow ing:
'-' Recruit me n t a nd se lection
u Com pensat ion
u Tra inin g
u Pe rfor ma nce ap pra isa l.
Recruitment and Selection
Job anal~sis p rov ide s infor mation abou t w h at the job is abo u t a nd w ha t h.um a n
ch~racte n stics are req u ired to pe rfor m th ese activitie s . Th is infor mation, in th e
foun of JOb descripti ons and specificat ions, helps man ager s d ecide w hat kmd of
peopl e to recruit.
 4 a Job Analysis

Figure 4.2
Usesof Job AnalysisInformation

JobdescriP,tionand
Jobspecification

1 I I
Jobevaluation-wage
l
Recruitingand Performanceappraisal and salarydecisions Trainingrequirements
selectiondecisions (compensation)

Compensation e What is job analysis?

Job ana lysis information is useful for estimatin g the value of each job and its e What is it used for?
appropriate comp ensation. Comp ensation (such as salar y and bonu s) depe nd s on e How is it used?
the job's required ski ll, education leve l, safety haza rd, leve l of respons ibility, and
so on.
Many empl oyers gro up jobs into different classes (say, secreta ry III and IV). Job
analys is provid es the information to d etermin e the relat ive wo rth of each job-a nd
thus its appropriat e class.
Job description --- -
A list of a job' s duties,
respon sibilities, reportin g
Training relation sh ips, and working
Th e job des cripti on lists the duti es of the job and the requir ed sk ills- and therefor e condition s.
the trainin g that the job need s.

"S PERSONNEL FILE •

Performance Appraisal
'rn11
A perform ance appraisa l comp ares emp loyees' performan ce wi th
their pe rforman ce s tand ard s. Managers use job analys is to find out
w ha t the se duti es and performa nce stand ard s are.

Steps InJobAnalysis
Ther e are six steps in doin g a job analysis.

Step I: Use of the information A performanceappraisal compares

employees· performance with their
Dec ide how you w ill use the informati on becau se this w ill d etermin e the data you performance standards.
collect and how yo u collect them.

Organization chart
Step 2: Review background information A chart that sho ws
Rev iew relevan t background inform ation such as org ani za tion char t and job the orga nization-w ide
desc riptio ns. An organi zatio n chart shows the compa ny's di vision of work, how distributi on of wor k, with
one job relate s to other jobs and where tha t job fits int o th e ove rall or ga niza tion. title s of eac h position an d
the co nn ectin g lines that
The cha rt shows the title of each position and, by means of conn ecting lines, w ho show who repo rt s co w hom .
report s to w hom.
 Part 2 ° Recruitment and Placement
Job speci fication s -----..
A list of a job's "hum an
require m ent s," i.e., th e
requisite education, skills,
perso nality, et c.
Figure 4.3
Methodsof CollectingInformation
Step 3: Select representative positions
Th e re ma y be to o ma ny si m ila r job s to ana lyze . As it is u nne cessa ry lo .in.ilyzc the
jobs of 200 asse mbl y wo rke rs, a sa mple of 10 job s is suffi cien t.
Step 4: Analyze the job
Co llect data o n job ac tiv ities, required em ployee behav iors, working conditions,
and hum a n trait s a nd abi lities needed to pe rform the job.
Step 5: Verify the information
Ve rify the job an a lys is inform a tion w ith wor ke rs do ing thclt jt1b .ind wit h th e ir
imm edia te superv iso r. Thi s w ill he lp to confi rm that the inform c1tion is foctuall y
correc t a nd co mpl e te . Thi s rev iew ca n a lso help lo ga in th e emp loyee's accep tance
of th e job ana lys is da ta a nd conc lu sion, by g ivin g tha t per so n a chance lo rev iew
and m odi fy yo ur d escr ipti o n o f the job activ ities.
Step 6: Develop job description and job specification
Th e job d es cr ipt io n is a w ritt e n sta te me n t tha t exp la ins th e ac tiv ities a nd
res pons ib ilitie s o f the job . It a lso de scr ibes important fea tur es, s u ch a s wo rkin g
conditi o ns a nd sa fety haza rds. The job s pecifica tio n s ummari zes the pe rso nal
qual ities, tr a its, ski lls, and backgro un d requ ired to d o the job . It ma y be in a se para te
do cum ent o r in the s ame d oc um e n t as the job d esc ript ion .
Methods For CollectingJobAnalysis
Information
Th e re a re va riou s meth od s to co llec t info rm ation o n th e du ties, res po ns ibi litie s,
a nd act iv ities of a job. Th e pop u lar ones a rc shO\,vn in Fig ure 4.3:
Interview Questionnaire
Observation Participants' diary
The Interview
Thr ee ty pes of int erv iews a re u se d to collect job ana lys is d ata :
v In d ividual int erv iews w ith eac h e mp loy ee
v Gro up in te rvi ews w ith g roup s of e m p loye es w h o h ave the sa me job
v Su pe rv iso r inte rviews w ith o ne or more su pe rv isors who know th e job .
So me typ ical in ter v iew quest io ns inclu d e:
v Wh a t is th e job be ing pe rfo rm e d ?
u Wh at are the m ajo r d uties o f yo ur po s itio n?
, What exact ly do yo u do?
u W hat ph ys ica l locat ions do yo u w o rk in?
~ What ar e th e edu ca tio n, exper ien ce, a nd s kill req ui re ment s?
• In w ha t ac tiv ities do yo u part icipa te?
 4 o Job Analysis

The interview is the most widely used method. It is a simple and quick way
to collect information, includino information that may never appear on a written
form. For instance, a skilled i~terviewer can discover important activities that
occur only occasionally, or informal contacts that may not be obvious from the
organization chart. The main weakness of this method is distortion of information
caused by falsification or misunderstanding.
Interviews are popu lar methods for obtainino job-related information. They
may range from completely unstructured intervi~ws ("Tell me about your job")
to highly structured ones in which job analysts follow detailed questionnaires in
asking their questions.
It is important to be sure the interviewee understands the reason for the
interv iew, because there is a tendency for such interviews to be seen, rightly or
wrongly, as "efficiency evaluations." If so, interviewees may hesitate to describe
their jobs accurately.
Job analysis is often a prelude to changing a job's pay rate. Employees may view
the interview as some sort of "efficie ncy evaluation" that may affect their pay. They
may then tend to exaggerate certain responsibilities while minimizing others.

Structured interview
Many interviewers follow structured or checklist formats. One example is the job
ana lysis questionnaire shown in Figure 4.4.

Questionnaire
Employees may be asked to fill out questionnaires to describe duties and
respo nsibilities. As shown in Figure 4.4, a typical job analysis questionnaire may
have open-ended questions (such as "state your jobs' overall purpose") as well as
structured questions (for instance, about education required).
Whether structured or unstructured, questionnaires have both pros and
cons. A questionnaire is a quick way to obtain information from a large number
of emp loyees. It is cheaper than interviewing hundr eds of workers. However,
developing the questionnaire and testing it (perhaps by making sure the workers
under stand the questions) can be expensive and time-consuming.

"We figure thoJ anyone who co.n complete oJI -=f

'-1psychometric test s
with us breathing down their necks must be highly rnohvo.ted."
Part 2 ° Recruitment and Placement

Job Analysis Information Sheet

Job Title _ ________________ _ Date ____________ _

Job Code _ _____ _ _ ___ ___ Dept . ________________ _
Superior' s Title ____________ ___________________ _
Ho urs Worked __ _ AM to ____ PM
Job Analyst 's Name ----------------- --------------
1. What is the job's overall purpos e ?

2. If th e incumbent supervi ses others , list them by job titl e; if there is more th an one employee
with th e same title, put the numb er in parenth eses following .

3. Check tho s e activitie s that are part of th e incumb ent ·s supervisory duties.
0 Training
0 Performance appraisal
0 Inspecting work
0 Budget ing
0 Coaching and/or counsel ing

0 Others (please specify):-- - --------------------

4. Des cribe the type and ex tent of s upervi sion received by th e incumb ent.

5. JOB DUTIES:Describe briefly WHAT the incumben t does and ·f 'bl l-'OW h / h
does .1t.Include dut .ies .1nthe following
. categories:
. . 1 poss1 e' --, e s e

a. daily duties (tho se perfo rmed on a regular basis every d d )

ay or aIm ost every ay

b. periodic duties (those perfo rmed weekly. mont hly qua t h

inte rvals) · r er IY, or at ot er regu 1ar

c. duties perfo rmed at irregular interva ls

6. Is the incumbent performing duties he/she conside rs u -

--- - -- - -------
7. Is the incumbent performing duties not p resently incl u~
nne cessary? If so, describe.
.
describe. e 1n t he Job description? If so,

8. EDUCATION : Check the box that indicates the educat ·

ed ucarional
. backgrou nd of th e .incumbent). 1ona1requ1rements
· . (not t h e
for the JOb
0 No formal educat ion requi red
0 High school diploma (or equivalent) O Eighth g rade educatio n
0 2-Year college degree (or eq uivalent)
0 4-year col lege degree (or equivalent)
0
Graduate work or advanced deg ree
0 Professional license Specify:
Specify: __ _ ___ _ _ _ _
----- ----

Figure 4.4
JobAnalysisQuestionnairefor DevelopingJob Descriptions
-----
-----
Nace· Use a questionnaire like th is to interv iew Job incumben t s, or have ti
'.ource· www hr.blr.com Reprimed wit h pe rm ission of th e publis her Bus 1 e111fill 1r Out
iness and L .
egal Re port s. Inc., Old Saybrook. CT 1' 2OOti
 4 e Job Analysis

9. EXPERIENCE
: Checkthe amount of experience needed to perform the job.
D None D Lessthan one month
D One to six months D Sixmont hs to one year
D One to three years D Three to five years
D Fiveto ten years D More than ten years
l 0. LOCATION:Check location of job and, if necessary or appropriate, describe briefly.

D Outdoor D Indoor
D Underground D Excavation
D Scaffold D Other (specify)
11.ENVIRONMENTAL CONDITIONS: Checkany objectionable conditions found on the job
and note afterward how frequently each is encountered (rarely, occasionally,constantly,etc.).
D Dirt D Dust
D Heat D Cold
D Noise D Fumes
D Odors D Wetness/humidity
D Vibration D Sudden temperature changes
D Darknessor poor lighting D Other (specify)
12.HEALTH AND SAFETY: Checkany undesirablehealth and safety conditions underwhich
the incumbent must perform and note how often they are encountered.
D Elevatedworkplace D Mechanical hazards
D Explosives D Electrical hazards
D Firehazards D Radiation
D Other (specify)
13. MACHINES, TOOLS, EQUIPMENT, AND WORK AIDS: Describe briefly what
machines,tools, equipment, or work aids the incumbent works with on a regular basis:

14. Haveconcrete work standardsbeen established(errors allowed, time taken for a particular
task,etc.)?If so,what are they?

15. Are there any personalattributes (specialaptitudes, physical characteristics,personality

traits,etc.) required by the job?

16. Are there any exceptional problems the incumbent might be expected to encounter in
performing the j ob under normal conditions?If so,describe.

17. Describe the successfulcompletion and/or end results of the job.

18.What is the seriousness

of erroron thisjob? Who or what is affectedby errorsthe incumbent
makes?

19.To what job would a success

ful incumbent expect to be promoted?

[Note:this form is obviously slanted toward a manufacturingenvironment, but it can be adapted

quite easilyto fit a number of different types of jobs.)

Figure4.4 (Contin
ued)
 Part 2 ° Recruitment and Placement
Diary - --- - --
Daily listings made by
wo rkers of every ac tivity in
which th ey engage along
wit h t he tim e each activity
ta kes.
When employeesrecord their
activities in a participantdiary,this
can producea completepicture
of their job, especiallywhen
supplemented with subsequent
interviewswith the workerand
supervisor.
Q.uickQ.uiz
t:t List the various met hods of collecting
o
job analysis information.
Briefly discuss three methods.
Observation
Dir ec t obse r va ti on is use fu l w hen job s consist m a inly of obse rvab le a ctiv it ies-
a sse m b ly-Iin e wor ke r a nd acco un tin g clerk are examp les. On the ot her hand ,
observatio n is not a p prop riat e w he n the job invo lves a lot of m en ta l activ ity
(lawye r, d es ig n engi nee r).
Participant Diary
- A no th e r m e th od is to ask wo rkers to keep a di ar y o r a lis t of what they do d u rin g
the day. Fo r every act iv ity they d o, the em p loyees record th e a ctiv ity (a lo ng w ith
th e ti m e) in a di a ry.
Thi s ca n prod uce a com p lete pi ctur e of th e job, espec ia lly w he n sup p leme nt ed
w ith s u bseq ue n t in te rv ie ws wit h the worker a nd th e su pe r visor. T he e mpl oyee, of
cour se, m ay try to exagge rate some act ivit ies and un de rp lay ot her s. Howeve r~ th e
de ta iled , ch ro no log ica l natu re of the d ia ry w ill show the tr ue pictur e.
Writing job Descriptions
A job descr ip tion is a w ritte n stat em ent of:
"' What the wor kers d o,
w H ow th ey do it, an d
v What the job 's wor kin g cond itions are .
Th is in format ion is use d to w rite a job sp ecifica tion th at lists the know ledge,
ab iliti es, a nd ski lls ne ed ed to do the job.
Th e re is no stan d ard format for wr iting a jo b de scripti o n. Howev e r, m os t
de scri pt ions co ntai n sectio ns th at cove r th e followi ng :
u Job ide n tifica tion
v Job su m m a ry
v Res ponsib ilities and d ut ies
u Aut ho rity of jobho lde r
t~ Sta ndard s of per formance
u Wo rki ng cond itions
.tJ Job s pec ificatio ns.
Figure 4.5 pr ese nt s a sa mp le job d escr ipt ion.
 4 e Job Analysis

Job Identification
As shown in Figure 4.5, the job identification section contains the job title such as
marketing manager, or inventory control clerk.

JOB TITLE : Telesales Representative JOB CODE: 10000 1

RECOMMENDED SALARY GRADE: EXEMPT/NON - EXEMPT STATUS: Nonexempt

JOB FAMILY: Sales EEOC: Sales Workers

DIVISION : Higher Education REPORTS TO: District Sales Manager

DEPARTMENT: In-House Sales LOCATION : Boston

DATE: April 2004

SUM MARY (Write a brief summar y of jo b.)

The person in this positi on is responsible for selling college textbooks, software, and multimedia products to professors,
via incomi ng and o utg oing telephone calls, and to carry out selling strategies to mee t sales goals in assigned te rritories of
sm aller co lleges and universities. In addition, th e individua l in this position w ill be respo nsible for generat ing a designated
amount of ed itorial leads and comm uni cating to the publi shing grou ps produc t feedback and market trend s observed in
t he assig ned territo ry.

SCOPE AND IMPACT OF JOB

Dollar responsibilitie s (budget and/o r revenue)

The person in t his positi on is respon sible for generating app roximately $2 mi llion in revenue, for m eet ing opera ting expense
budge t of app roxim ately $4000, and a sampl ing budget of approximately 10,000 un its.

Sup erviso ry responsibilit ies (direct and indirect)

None

REQUIRED KNOWLEDGE AND EXPERIENCE (Knowledge and exper ience necessary to do jo b)

Related work expe rience

Prior sales or publi shing experience preferred. One year of company experience in a customer service or marketin g
function wi th broad knowledge of co mpany produc ts and services is desirable.

Forma l educ ation or equivalent

Bachelor's deg ree with strong academic performance or work equi valent experi ence.

Skills
Must have stron g organizational and persuasive skills. Must have excellent ve rbal and w rinen commu nications skills
and mu st be PC proficie nt.

Other

Limit ed travel requ ired (approx 5%)

Figure 4.5
Samplejob description,PearsonEducation
~ource· Co urt esy of HR Dep art m en t. Pearso n Educat ion.
 Part 2 a Recruitment and Placement

PRIMARY RESPONSIBILITIES (List in o rd e r o f imp o rta n ce a nd l ist a m ount of t ime spent on task.)

Driving Sales (60%)

e Achieve quantitative sales goal for assigned territory of smaller colleges and uni versiti es.
e Determine sales priorities and strategies for territory and develop a plan for impl ement ing those strategi es.
o Conduct 15-20 professor interviews per day during the academic sales year that accompli shes those pri oriti es.
a Conduct product presentations (including texts, software, and web-site); effectively articulat e author 's central
vision of key title s; conduct sales interviews using the PSSmodel; conduct walk-through of books and
technolog y.
a Employ telephone selling techniques and strategies.
e Sample products to appropri ate facult y making strategic use of assign ed sampling budgets .
o Close class test adoptions for first edition product s.
e Negotiate custom publishing and specia l packaging agreements within company guideline s.
e Initiat e and conduct in-per son facu lt y presentati o ns and selling trips as appropriate to maximi ze sales with the
strategic use of trave l budget . Also use int ernal resources to support the territory sales goal s.
e Plan and execut e in-territor y special selling event s and book-fairs.
a Develop and implement in-territory promotional campaigns and target ed email campaigns.

Publishing (editorial/marketing) 25%

e Report, track , and sign editor ial projects.
o Gath er and communicate significant marke t feedback and information to publishing groups.

Territory Management 15%

a Track and report all pending and closed busine ss in assigned databa se.
o Maintain records of customer sales inter view s and adoption situations in assigned database.
e Manage operating budget strategic ally.
e Submit territory itinerari es, sales pl ans, and sales foreca sts as assigned .
e Prov ide superior customer service and maint ain professional bookstore relat ions in assigned territory .

Decision-Making Responsibilities For This Position :

Determin e th e str ategic use of assigned sampling budget to most effectively generate sales revenue to exceed sales goals .
Det ermin e the priority of custo mer and account contacts to achieve maxim um sales potential.
Determine w here in-per son pre sentati ons and special selling event s would be most effecti ve to generate most sales.

Submitted By: Jim Smith, District Sales Manager Date: April 10, 2007 ---
App roval:
Date: -----
Human Resources:
Date: ---
Corporate Compensation: Date: ---
Figure 4.5 (Continued)
---
 4 ° Job Analysis

Job Summary
The job summ ary desc ribes th e ge neral natur e of the job, and includ es only its m ain
act iv ities.

Relationships
A "relat ionship s" state ment shows the jobhold er 's re lationship s w ith ot her peop le
ins ide and out s ide the orga nizat ion .
For a HR m anage r, su ch a statement may look like this :1
u Report to: Vice pres ide nt of empl oyee relations.
u Supervi se: HR clerk, test adm inistrator, labor relations officer, an d one
sec retary.
u Work with: All depa rtm ent manage rs and execu tive m an age ment.
u Out s ide th e co111pn11y: Emp loy ment age ncies, rec ruitin g firm s, uni on
rep rese ntatives, gove rnm ent departm ent s, and va rious ve nd ors.

Responsibilities and Duties

Thi s sect ion pr esent s a list of the job's respo nsibilities
and d u ties. As in Figure 4.6, it lists ead1 of the job's
majo r d uties separa tely, and des crib es it briefly.
Thi s sect ion may also defi ne the limit s of the
job holde r's auth ority, includin g d ecision-m akin g
auth o rity, dir ect sup ervision of other perso nn el, and
bud ge t limit. For exampl e, the jobholder may:
u Have au thority to app rove purch ase requ ests
u p to $5,000.
u Grant time off or leaves of absence.
u Discipline d ep artment personnel.
u Recomm end sa lary increases.
u Interv iew an d hir e new empl oyees.
The job descript ion for candidates
such as the customerseiviceoperator
Standards of Performance and shown here, should clearly indicate
which skills, like computer literacy,are
Working Conditions required.
Some job desc rip tions contain a "stand ards of performanc e" section. This lists the
standa rd s th e em ployee is expec ted to ach ieve und er each of the job desc ripti on 's
main duti es.
Most manage rs know that just telling subo rdi nates to "d o their bes t" d oes
not prov ide enough guid ance. Stand ards mu st be specific. Figure 4.7 shows some
exa m p les :

Duty: Accurately Posting Accounts Payable

Routeallinvo
icesto Havean averageof no
Postallinvoices
within
the sameday. -+ thepl'O~rcle~ent
nolatef thantheday
g receipt
followin
-+ more than threeposting
errorsper month.
Figure 4.7
Example of Specific Standards
 Pa rt 2 e Recruitment and Placement

Figure 4 .6 ------ --- --

Preliminary Job Description
Questionnaire
Source:Reprinted from www.HR.BLR.
com with the permission of the
publisher. © 2004 Businessand Legal
Reports, Inc.,
Old Saybrook, CT.
Instructions : Distribute copies of thi s questionnaireto
su pe v isors, manag ers, personnel staf members, jo b analysts, and
others who may be inv olved i n w riting jo b d escription s. Ask th em
to record their answers to these qu estions in w rit ing.
1. What is the jo b title? ______ _ _ ___ __ _ _

2. Summar ize th e job 's mor e imp o rt ant, reg ularly pe rformed / du t ies
in a Job Summary.

3. In w hat dep ar tment is th e j ob loca ted? _____ _ _ __ _

4. W hat is the tit le of th e sup er v isor or manager to whom th e j ob hold er must

rep o rt ?

5. Does the job hold er sup ervi se othe r emp loyees? If so, gi ve their job tit les
and a bri ef d escription of th eir responsib ilites.

Position Superv ised Respo nsib ilites

6. What essential function.duties do es t he job holde r perform regu larly? List

them in order of imp ortance.

Percentage ofT ime Devoted

Duty
to This Du ty
1.
2.
3.
4.
5.
6.

7. Does the j ob holde r perform ot her dut ies period ically? Infreq uent ly? If so,
pl ease list, indicatin g frequ ency.
8. What are th e wo rkin g co nditi ons? List such items as no ise, heat, o ut side
wor k, and exposur e to bad weathe r.

9. How much author ity doe s th e jobho lder have in such matt ers as t rai ni ng or
guiding othe r peo ple?

10. How mu ch edu cat ion, exp erience, and skill are requ ired for sat isfactor y
j ob performance?

11. At what stage is th e j ob hold er's work rev iewe d by th e sup erv isor?

12. What ma ch in es or eq uipm en t is th e j ob ho lder respons ibl e for o pe rating?

13. If t he j ob ho lder m akes a serious mi stake or error in pe rform ing requ ired
duti es, w hat wou ld be t he cost to manageme nt ?
 4 ° Job Analysis

WritingJobSpecifications
The job specif ication answe rs the question, "What hum an traits and exper ience
are requir ed to do this job?" It shows what kind of perso n to recruit and for what
qualit ies that person should be tested.
The job specification may be a section of the job descrip tion, shown in
Figure 4.5. It may also be a separa te document.

Nan interview, 'Your j ob is sirnple. Try not to rno..k.ethings worse ."

. .

Specifications Based on Judgment

Most job specifications come from the edu cated guesses of peop le like superv isors
or HR managers. The basic procedure is to ask: "What does it take in terms of
edu cation, intelligence, and training to do this job well?"

Job Specifications Based on Statistical Analysis

Basing job specifications on statistical analysis is the more defensible approach, but
it is also more difficult. The aim here is to deter mine stat istically the relat ionship
between (a) Some pred ictor or hum an trait, such as height, intelligence, or
finge r dexterity, and (b) Some ind icator or criter ion of job effectiveness, such as
perfo rm ance as rated by the super visor.
The proced ure has five steps (see Figure 4.8). The objective is to deter mine
whether the former pred icts the latter. Th.is meth od is more defen sible than the
judgmenta l approac h because equal rights legislation forbids using tra its that
cannot be proven to distinguish between high and low job performers. Hir ing
standa rd s that discrimin ate based on sex, race, religion, nationa l or igin, or age may
have to be show n to pred ict job performance. Ideally, this is don e w ith a statistical
validation stu dy, as in the five-step appro ach above.
 Part 2 ° Recruitment and Placement

Figur e 4.8
Determining JobSpecifications Analyze t he job and decide how to measurejo b performance
Through Statistical Analysis

Selectpersonaltraitslikefingerdexteritythatyou believe
shouldpredict successfulperformance

Test candidatesforthese traits

Measurethesecandidates'subsequentjob performance

Statistically
analyze relationship betweenthe human trait
(fingerdexterity)andjob performa nce
Redesigning jobs in waysthat increases
the opportunitiesfor workersto experience
feeli ngs of responsibility, achievement, and
recognition for their work will motivate
them to do their jobs well.
JobAnalysis
InA "Jobless"
World
The term "job" is ge ne ra lly defin ed as a set of clo sely re la ted act iv ities, but ove r the
yea rs the co ncep t o f a job has change d dr a matic ally.

From Specialized to Enlarged Jobs

The term "job" is a n outgrowt h of th e indu stri a l revo lu tio n. Dur in g that tim e, the
e mph asis was on efficie ncy. Peopl e like eco no mi st Adam Smi th and consult a nt
Frederick Tay lo r wrot e abo ut the positive link betwee n spec ia lized jobs and
eff iciency. Job descript ions w ere deta iled and spe cific .
By th e mid-1900 s, ot her w riter s cr iticize d the "de hum ani z ing" as pect s of
repetiti ve jobs. Th ey suggest ed so lu tions like job enl a rge m ent , job rotat ion, and
job enrichm e nt.
Job enlargement -- - - u Job e nl arge m ent means assigning workers add itiona l same- lev e l ac ti vities,
Assigning worke rs addition al
same-level act ivities, thu s thu s incr ea sing th e num ber of act ivities th ey per form.
increasing the numb er of u Jo b rotati o n m eans mo ving worker s from one job to anot her.
act ivities t hey perform. o Jo b e nrichm e nt m eans redesig nin g jobs in a way th at in crea ses th e
opportuni ties for wor ker s to ex perie nce feelin gs of res pon sibilit y,
Jo b rot ation achi ev~ment, growt h, a nd reco gnition -fo r in sta nce, by le ttin g th e
System ically moving workers wo rker s pl an a nd contro l their ow n work instea d of hav ing it con tro lled by
from o ne job to anoth er. outs iders.
According to psycho log ist Fred erick Herzberg, wo rker s w ill d o their job s we ll
Job enrich ment
Redesign ing jobs that beca use they wa n t to, and th ere fore qualit y and prod ucti v ity w ill rise.
give wo rkers a sense of
respo nsibility, ac hievement,
grow th , a nd recogni tio n. Why Managers are "Dejobbing" their Companies
Compani es a re fac in g cha llenges like technolog ical change , globa l compet ition,
an d a shift to a se rv ice eco nomy. Thi s has increased th e ne ed for wo rke rs to be
respon sive and flex ible. Job s have become more diffic ult to d efine . In ot he r wor d s,
the trend is toward de- job bin g.
 4 ° Job Analysi s

HR in ACTION

When Daimler-Chrysler opened its new Mercedes-Benz
factory, it gave the company an oppor tunity to start with
a new system.
The system Daimler chose was simi lar to the ·1ean
production system" that Japanese manufacturers like
Toyota have used. It emp hasized ju st-in-time inventory
methods, so that inventories were minimi zed because parts
arrived "ju st in time" for the assembly line. It emphasized
stable produ ction flows, since- reducing surprises (such
as cars reaching the. end of the line with defects that the.
worke rs must then repair) boosted quality.The new system
organized employees into wo rk teams, and required all
emp loyees to make continu ous improvement. · productivity and quality).
. Job analysis played a modifi ~d role in thi s factory.
Rather than having so many different joq description s,
there were only a few diff erent j ob descriptio ns o r jo bs.
Unconstrai ned by detailed description s listing dozens of
specific ·duties show ing wha t "my job" should b1;:,it was
easier for employees to move from job to job as they
wo rked in ·team-s.It also encouraged" emp loyees to look
beyond their own job s and find ways to impr ove the
facto ry's operat ions. For instance, one team found a $0.23
plastic prong -that w orked bett er than the previou s $2.50
prong the plant-was using to keep car doors open during
paint ing . The same team also redesigned the racks that
t he assemtily part s move on, saving assembly worke rs
tho·usands of steps per year (and thereby improv in g
This new system proved to be a success. Daimler
extended it to othe r factori~s around the wor ld.2

De-jobb ing means broad ening the responsibilities of the comp any's jobs and
encouraging empl oyee s not to limit themse lves to wha t is on their job de sa·iption s.
Th e trend is a lso towar d flatter organizations, se lf-ma naged work tea ms, and
ree ng ineering.

-
-o,-,.c

"You know. when George so.id we were going for

an open plan setting. I did n 't think he meant this."

Flatter Organization
Instead of trad itiona l, pyramid- shap ed orga niza tion s with seve n or more
manag ement laye rs, flat orga nizat ions w ith just three or four levels have become
mor e common .

Self-Managing Worl< Team

Manage rs increasingly organ ize tasks arou nd tea ms and pro cesses rath e r than
aro u nd specialized fun ctions.
 Part 2 ° Recruitment and Placement

At a Nissanfactory in Tokyo,Japan,
work teams like this are pan of
the trend toward a multi-skilled,
crossfunctional, self -duected team
organizationthat allov1sworkers
greater autonomy1nmeeting goals.
In plantslike these,broadly described
jobs that emphasizeemployees·
requiredcompetenciesare replacing
narrowly defined Jobs.

Re-engineering
Ree ng inee rin g (technic a lly, "bu siness pr o cess ree ng ineer ing") m ea n s red es ig nin g
a bu s iness p rocess so th at e mpl oyees form sm a ll self-ma nag ing teams c1nd ge t the
task d one toge the r. The a im is to impro ve pe rfo rn1c1n ce meas ur es su ch as lowe r
cost, bette r qu a lity, se rv ice, and s pee d .
In the ir boo k, Ree11gi11 eering the Corporntio11
, H amm e r and Cha mp y a rg u e that
the hig hly sp ec ialize d di v is ion of wo rk sho uld be re plac ed. Instead, th e co m pa ny
sh ould combin e tasks in to in teg ra ted, un s pec ia lized processes (s uch as cus to mer
serv ice ) assigned to tea ms of e mpl oyees. 3
Re-e nginee rin g has im p lica tio ns for w ritin g job desc rip tio n s. Typ ica lly, in
re-e ng inee red situ atio n s, wo rke rs beco me co llec tive ly res po ns ible for ove rall
res u lts rath e r than jus t fo r th eir ow n tas ks.

Competency-Based Job Analysis

In a hi gh-perfor m ance wo rk en vironm en t in w hi ch wo rk e rs h ave to move from
job to job and exerc ise se lf-cont ro l, job d escriptio ns based o n s pecifi c dut ies
m ay inhib it th e flex ib le behav io r tha t com p anies need. Em p loyers a rc shi fting
towa rd newer approac hes for d escr ibin g jobs. O ne o f these is co mp etency-b ase d
ana lys is.

!=ompetency -based What are Competencies?

Job analysis
desc ribin g t he jo b in C omp eten cy -ba se d job anal ys is mea ns wr itin g job d esc rip tions based on
ter m s of th e measur ab le, co mp ete n cies rat he r th an job d uti es . It emph as ize s w ha t th e empl oyee mu st
observab le, behavioral be ca pab le of do ing, rat he r than o n a list of th e d uti es th ey mu st pe rform . Job
compete ncies (know ledge, co mp ete n cies ar e obse rvab le and meas ur ab le beh av io rs that are p art of a job .
skills, and be havio rs) that
an emp loyee m ust have to
do t he job.
 4 ° Job Analysis

This contrasts wit h the traditi ona l way of d esc ribin g the job in te rm s of job
d u ties a nd res ponsibilities . Co mp ete ncy analys is focuses more on "hm,v" the
wo rker mee ts the job's objectives or act ually acco mpli shes the wo rk.
Trad itiona l job analys is is job focused . Co mp etency-ba se d ana lys is is wo rke r
focused- specifica lly, what they mu st be compe ten t to d o.

Reasons to Use Competency Analysis

There a re three reaso ns to desc ribe jobs in term s of compe tencies rather than duti es.
v Traditi ona l job d esc rip tions (w ith their lists of specific duti es) may backfire
if yo u wa nt to have a high-pe r formanc e wor k sys te m.
The sys tem encour ages empl oyees to wo rk in a se lf-motiva ted way as
show n below in Figure 4.9:

,
Encourage team Givemore Figure 4.9
Organizethework
aroundteams -+ membersto rotate
freelyamong jobs
-+ responsibility
workers
to Encouraging Employeesto Work
in a Self-motivated Way
' -""

u Describin g the job in te rms of the sk ills, kn ow ledge, and competenc ies that
the wo rker needs is more strateg ic. For examp le, Canon's st rateg ic e mphasis
on mini aturi zat ion and p recision manu fact u ring mea ns it should encou rage
so me emp loyees to d eve lop their expe rtise in these two st rateg ic a reas .
u We will see later in this book that meas ur able sk ills, know led ge, and
comp etencies supp ort the empl oyer's pe rform ance manage men t process.
As at Ca non, achiev ing the comp any's st rateg ic goals mea ns that emp loyees
mu st have the requir ed compe tencies.

How to Write a Competencies-Based Job

Description
Definin g the job's comp ete ncies and writin g them u p invo lves a pro cess that is
simil a r to tradit ional job analys is. The manage r wi ll interv iew jobho lders an d their
sup erviso rs, as k open-end ed questions rega rd ing job respo nsibilities and activities,
a nd ide ntify critical incide nts that pinp oint success on the job .

Self-Managed
TeamsIn Asia
Self-ma nage d teams (SMTs) are sma ll gro up s of wo rke rs w ho have bee n g ive n
the au thority to ma nage the ir ow n wo rk. They se t their ow n target a nd schedul e,
inspect the ir O\Nn wo rk and rev iew perfo rm ance as a gro u p. They a re accou ntable
for the qu a lity of the p rodu ct they make.
Th e se lf-managed tea m goes beyo nd job rotation and job enlarge ment. It focuses
on the tota l tas k to be done by a gro u p of wo rkers. It allov,1s them to cont rol their
wo rk a rrangeme n ts and the conditi ons of their jobs. Howeve r, the worke rs need
to be trained be fore such an approac h can be introd uced . In add ition to techn ical
tra inin g, it may also invo lve learnin g the techniqu es and processes of d ecis ion-
mak ing .
 Part 2 ° Recruitment and Placement

HR in ACTION

Develo pi ng co m pe_tency-ba sed job d escrip t ion s invo lves
listing th e specifi c skill s that the job req uires. Thi s sim pl e
me thod then links with the em plo yer's pay plan. Fo r
instance: emplo yee s' pay goes up eve ry tim e they show by
testing th at the skil l is mastered.
in on e co m pany - Brit ish Petrole um's explorat ion
divi sio n- the need for m ore efficient. flexib le, flatt er
orga nization s and em p_owe red · em ploye es pro mp ted
management to replace jo~ descrip tions w it h matr ices
listing skills and skill levels. Senior ma nager s wan ted to shift
em ploy ees' atter\tion from a "that's-not-my-job " mentality
to o ne that - w o uld mo tivate them to ob tain th e new
skills and co m pete ncies th ey needed to acco~ plish th eir
b roader respo nsib ilit ies.•
The solut ion w as a skills matr ix like th at in Figure 4 .10 .
They created skills matri ces for vario us jobs held by two
g ro ups of emplo yees, those on a manageme nt track
and tho se w ho se aims lay elsew here (such as to stay in
eng ineering). The HR department prepared a· matrix fo r
each job or jo b fam ily (such as drilling manager).
As show n in Figure 4 .10 , th e m atrix listed the fo llow ing:
O Basic skills needed for th at job (such as techn ical
expert ise and business aw areness)
O Min imum level of each skill requi red for that job o r
job family.
As yo u can see, the em phasis is no lo nge r o n spec ific j ob
duti es. Instead, th e foc us is on specifying and developi ng
t he new skills (technical exp ert ise, bu sin ess awareness,
etc.) needed for th e em ployees' broad er, emp owe red, and
relative ly undefined responsibi lit ies. .
The skills mat rix triggered o th er HR cha nges, and
supp orted a pe rfo rmance management effort. For examp le,
th e m atrices gave empl oye es . a con stant remind er of
w hat skills they m ust imp rove. The firm instit ut ed a new
skill-based pay pl an that awards raises based on skills
imp r0vement.
· Performance app raisals now focus mo re o n skills
acqu isition. And trainin g emphasizes deve lopin g broad
skills like leadership and planni ng-s kill s appli cable across
a w ide range of respon sib ilities and jo bs.

H H H H H H H

G G G G G G G

F F F F F F F

E E E E E E E

D D D D D D D

C C C C C C C

B B B B B B B

A A A A A A A

Technical Business Communication Decision Leadership and Planning and Problem-

expertise awareness and Making and guidance organization al solving
Interpersonal Initiative ablllty

Figure 4.10
The Skills Matrix for One Job at BP
Note The light blue boxes indicate t h e mi ni mum leve l of skill req u ired for t h e job .

HR in ACTION
L/ SMTs: Texas Instruments in Malay sia and
- Philippines .
Texas Instruments Malaysia (TIM) was organized along the
lines of self-managed work teams. There were on ly three
levels in the company hierarchy:
e Quality steering team (comprising the managing
director and.the manage rs)
o Process management teams (comprising section
· · heads of indiv idual departments)
o Self-managed teams (compr ising operators and
technicians).
The practice of self-managed teams was introduced in
TIM after the company had examined various management
styles including those in Japari and the United States.The
use of rigid job descriptions was discontinued . The pay
· scheme was restructured and emp loyees we re now paid for
what they co ntributed to the company. Each self-managed
work team had ten to fifteen persons. It was headed b_y
Self-_Managed Team s in Singapor e
Self-managed team concept is practiced in several
companies. For examp le, at Becton Dickinson Medica l
Singapo re, the SMT's structure comp rised: (a) steering
team, (b) resource teams (c) process teams.
The steering team compr ised senior management staff
and provided directions for the company. It included the
plant manager and heads of department. It developed plans
to ensure that. the workers were technically competent and
that they understood the plans of the company.
· The research teams consisted of profes5fonals such as
engineers, accountants, planners, and technical specialists.
They provided the expertise an!:i resources to ' the ·process
teams. They focused on quallty, and cost reduction in terms
of waste and efficiency.They coached the leaders of process
teams and helped in planning and training their teams.
Process teams were g roups of employees directly
involved in manufacturing the products or providing
services to customers.
The role of ehe process team leader was to .coordinate
the team's activities, encourage participation, and
facilitate team decision-making. They also communicated
· performance targ_ets and special requirements to
SMT at the Ritz
At the Ritz-Carlton Hotel in Singapore, employees were
authorized to spend up to S$2,800, without . seeking ·
approval, to please an unhappy guest. They could send
flowers, invite customers back for a meal on the house,"
or even buy a guest a new suit without seeking clearance
from a supervisor.
Each staff member had a credo card that listed basic
things they must observe to provide a high standard 'Of
4 ° Job An alysis
a facilitator and assisted by a coordinator rotate d among
team membe rs.
Productivity increased threefold and factory output had
more than doubled. Absentee ism was reduced and 41
p~rcent of the staff had never been absent. Staff loyalty
was enhanced. Nearly 30 percent of the workers had been
with TIM for more than fifteen years, and about 85 percent
for at least five years. Total involvemen t had resulted in
· better prod uct quality . In 1991, the company was awarded
the Malaysian International Trade and Industry Quality
Manage ment Award. It also won the National Award for
Excellence in Manufa ct uring Practice.
Texas Instruments had also introduced ·self-managed
teams in its factories in the Philippines. Similar success vyas
repo rted after one year of experimentation. It won the 1991
World Execut ive Digest · Management Award for People
Development and Management in the Philippines .5
team member s. The responsip ilities of team members
we re to:
a Understand the team goals
El Participate, solve problems, and make dec isions
O Perform-tasks to achieve standards
o Monitor results.
Team members were also involved in review ing quality,
perfmmanc e issues, and internal audit for ISO14001,·ISO
9002, and safety. Proc~ss teams were authori zed to do the
following:
o Change met hods and procedures of their tasks
p Start or stop process to ensure customer satisfaction
or safety ·
u Work o.vertim e within thei r budget
u Schedule.act ivit ies such as maintenance, training ,
and leave
e Allocate resources w ith in the team
o Prioritize tasks to be performed .
Key members were also invo lved in peer hiring. The
concept was based on the belief that these members
were closest to t he jobs ..They knew the requirements and
were capable of choosii:g their potentia l team -mates.6
service.There was a sentence that said: "Do everyth ing you
possibly can to neve r lose a guest." ·
The Ritz Carlton gave power to self-managed teams
where the employees we re in charge of recruiting worke rs
and making decisions on work procedu res. The teams
recruited their new co -worke rs to jo in thei r team , did their
own performance appraisal, made dec isions about their
own work processes, and hand led t heir own budgets. 7
 Part 2 ° Recruitment and Placement

CHAPTER SUMMARY
1. Job analysis is the procedure through w hich yo u find o ut (a) w hat the j ob invol ves, and (b) what kin d o f I
people to hir e for the job . It invol ves six steps:

\ a. Determine the use of th e job analysis information

b. Collect background information
c. Select the positions to be analyzed
d. Collect the data
e. Review information with particip ants
f. Develop a job description and job specificati o n.
2. There are four basic techniques to gather job analysis data: int erview, obse rvat ion, que stionnaire, and I
participant diary.
3. The job description sho uld clearly explain the wo rk of the position w it hout refe rence to other job
descriptions .
I
4. The job specification describes the traits and experience that are necessary to do a j ob. I
s. Oejobbing is the result of rapid changes in the business wo rld .
6. Competency -based analysis shows a job in t erm s of measurabl e, observab le, behavio ral co m petencies I
that an employee must have.
I
KEY TERMS
competencies, 90 job en largement, 88
competency -based job analysis, 90 job enrichment, 88
dejobbing, 88 job rotati o n, 88

l
diar y, 82 j ob specifi cations, 78
job analysis, 76 organizat ion chart , 77
j ob d escription, 77 reengin eerin g, 90

I
 4 e Job Analysis

DISCUSS!
1. What items are typi cally included in th e job description? What items are typ ically not show n?
2. What is job analysis? How can you make use of the information it provid es?
3. There are several method s for collecting job analysis data. Compare these methods and explain what each
is useful for and list the pro s and cons of each.
4. Describe the types of informati on typically found in a job specification.
5. Explain how you would conduct a job analysis.
6. Do you think companies can really do without detailed job descriptions? Why or why not?
7. In a company with only 25 employees, is there less need for job descript ions?Why or why not?

•• ••• ••• ••••• • • •••••••• ••••• ••••• •••••••••••••• •••••

INTERACT!
ACTIVITY 1 Working individually or in groups, obtain copies of job description s for clerical positions at the
college or uni versity where you study, or the company where you work. What types of info rmation do t hey
contain? Do th ey give you enough information to explain what the job involves and how to do it? How wo uld
you im prove on the description?

ACTIVITY 2 Working as individuals or in group s, w rite a job descripti on for your prof essor in thi s class. Based
on that, develop a job specification . Compare your conclusion with th ose of othe r students or groups . Were
there any significant differences? What do you think accounted for the differences ?

••••••••• •••••••••••••••••••••••••••••••••••••••••• •
USEYOUR HR SKILLS!
Typhoon Alice
The recent typ hoo n had affected several citi es along the coast of the South China Sea. Many homes in Hong
Kong were seriously damaged and needed urgent repairs.
The Kw ik Home Repairs Company found that it had t o hire three com pletely new crews, one for each of its
shift s.The probl em was that th e "old-tim ers" knew th eir jobs so we ll th at no one had ever both ered t o draw up
job descriptions for them . When about 30 new employ ees began to work, there was confus ion about what they
should do and how they should do it.
Phil Mun, the company's general manager, was desperate. He had 30 new emplo yees, 1O old-t im ers, and
his original factory supervisor, May Lin. He decided to meet Lind a Lo, a consultant fro m the local university's
business schoo l. She imm ediately had the old -tim ers fill out a job questionnai re t hat listed all th eir duties .
Arguments ensued almost at once: Both Phil Mun and May Lin thou ght the old-t imers were exaggerati ng to
make themse lves look more important , and th e old -timers insisted th at the list s faithfu lly reflected t heir duties.
Meanwhile, th e customers wanted their homes t o be repaired quick ly.

Questions
1. Should Phil and May Lin ignore th e old-timers' protest s and wr ite up th e j ob descriptio ns as the y see fi t?
Why?Why not? How wo uld you go about resolving th e diff erences?
2. How wo uld you have conducted the job analysis?What should Phil Mun do now?
Part 2 u Recruitmentand Placement

EXPERIENCE HR!
The Instruc to r's Job Description
Purpose
The purpose of this exe rci se is for you to develop a j ob description for your instruct or.

Required Understanding .
You sho uld understand the m ec hanics of job analys is and be thoroughly fami liar w ith th e job analysis
questionnaires. (See Figure 4.4 for j ob ana lysis questionnaire and Figure 4.6 for job description questionna ire).

How to Set Up the Exercise

Set up groups of four to six st ud ents . As in all exerc ises in this book, the groups should be sepa rated and shou ld
not ta lk to one another.
Half the groups in the class wi ll develop the j ob description using the job analysis ques t ionnai re (Figure 4.4 ).
and the other half of the groups w ill develop it using t he job descript ion questionna ire (Figure 4 .6 ). Students
should review their que stionnaire (as approp riate) before j oin ing their group.
l . Each group shou ld do a job analysis of t he in st ructor's j ob. Half t he groups w ill use th e Figure 4.4 job ana lysis
questionnaire for this purpose, and the other half will use the Figure 4.6 job descr ipt ion questionnaire .
2 · Based on thi s information, each group wi ll develop it s own job descri ption and job specification for the
instructor.
3 · Next, each gro up shou ld choose a partner g roup , one th at developed the job descr iption and job spec ifi cation
using the alternate method. (A group that used t he job analysis questionna ire shou ld be paired wit h a group
that used the job de scription questionnaire.).
4 · Finally, within each of these new combined groups, compare each of the two sets of job descr ipti ons and job
specificat ions.
a Did each job ana lysis method prov id e diff erent typ es of info rmation?
b Which seem s to be better?
c Does one seem mor e advantageous for some types of jo bs than ot hers?

•••••••• •••••• • • •• • • •• • •• •• ••• •• ••••••• •••• • •• • • • • ••

<" j~n Laundry Company

A CONTINUING CASE IN EVERY CHAPTER..•

The Job Description I
tBased
d on her. rev·iew o f t h e stores, KK,s Consu lting
. .
Manag er Jen Ko dec ided · task she ha d to do was
that the first
0
. h eve lop Job descrip ti ons for her store managers. She reali zed that what she had learnt abou t j ob descr iptions I
'.n er HIRbmanagement courses were too simp le. The course did not exp lain t he importance of job desc rip t ion
in a rea usiness.
I
Many times during her fir st few weeks on the job Jen asked one of her store managers w hy he was viol ating
th e company policies and procedures. Repeated ly the answers were ei ther"B ecause I didn 't know it was my job "

'II
or "Be ca use I d.d
I n' t k now that was the way we were
' supp osed to do it :'
Jen knew that a job desc ription, along w ith a set of standard s and proc ed ures that spec ified what was to be
done and how t o do it, were necessary to solve thi s prob lem.
In genera l, th e store manager is responsi bl e for all store activiti es in such a way that quality work is produc ed,
sales are maximized, and profitab il ity is maintain ed throu g h effect ive con t ro l of costs . In ach ieving tha t aim, a
sto re ma nager's respo nsib il ities in clude quality contro l, sto re cleanl iness, custo mer relati ons, cash management ,
cost co ntrol , pric ing, inventory control, machine mainten ance, purchas ing, emp loyee safety, waste removal,
I
human resou rce administrat ion, and pest control.
 4 a Job Analysis

These are questions that Jen had to deal with:

1. What should be the format and final form of the store manager 's job description?
2. Is it practical to specify standards and procedures in the job description, or shou ld th ese be kept separate?
3. How should Jen go about collecting th e information required for the standards, procedures, and job
description s?
4. What, in your opinion, should the store manager's j ob description look like and contain?

4) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

THEHRs coRE CARD

Strategy and Results- Hotel International
Job Description
Hotel lnternational 's corporate strategy is "To use superior guest service to differentiate the hotel, and
to increase the lengt h of stay and return rate of guests, and boost revenues and profits:·
HR Director Li must set policies and introduc e activities that support this corporate strategy. The
objective is to encourage the required emp loyee behaviors and competencies.
As an experienced HR director, Li knew that recruitm ent and selection processes invariably
influenced emp loyee competencies and behavior and, through them, the company's bottom lin e.
Everything about the workforce-its collective skills, morale, experience, and motivation- depended
on attract ing and selecting the right emp loyees.
Reviewing the hote l's emp loyment systems,she found that most of the company's job descriptions
were out of date, and that many j obs had no descriptions at all. She knew that w ith out accurat e job
descriptions, all her impro vement efforts wo uld be in vain. After all, if you don't know the duties,
responsibilities, and human requirements of a job, how can you decide who to hire or how to train
them?
To create HR policies and practices t hat wo uld produce emp loyee competencies and behaviors
needed to achieve the hot el's goals, the HRteam had to produce a set of usable job descriptions.
HR Director Li did a prelimin ary analysis. She chose departments across the hote l chain that did
and did not have job description s. Her analysis suggested that having job descriptions had a positive
influ ence on various emp loyee behaviors and competencies.
She knew that the hotel's job descriptions had to include traditional duties and responsib iliti es.
Howeve r, they should also include several competencies unique to each job. For examp le, job
descriptions for the front-desk clerks may includ e "able to check a guest in or out in five minutes or less:·
Most service emp loyees'descriptions includ ed the competency, "able to show patience and courtesy to
guests even when busy with other activiti es:'
Li knew that includin g these competenc ies would make it easier for her team to devise useful
emplo yee selection, training, and evaluatio n processes.

Questions
1. Basedon the hot el's strategy, list at least fo ur imp ortant employee behaviors for the hotel staff.
2. If time permits, spend some time before coming to class and observe the front desk clerk at a local
hotel. Write a job description for a hotel front desk clerk.
 Part 2 o Recruitment and Placement

5. Strategic Rankings in Profit margins Percent share of Annua l revenues

performance industry service and total annual market
metrics
(Are we achieving
our strategicgoals?)
satisfaction
surveys
pro fits
.
t . 1'
4. Strategically Guest service Number of written guest Various customer and
relevant customer sat isfaction index compliments and/or Hotel International
and organizational comp laints per year outcome metrics,
outcomes metrics including: frequency of
(How can we measure guests' returns; average
whetherour customer length of stay; and guest
serviceis actually expenditures per guest
improving and having per stay

I
the desiredeffects?)

1
3. Strategically Employee Employee morale
r
Various employee Employee Percentage of
relevant turnover service-oriented service emp loyees
emergent behavior metrics, commitm ent and scoring at least
employee including: percent engagement 90%011Hotel
capabilities and calls answered with index International core
behaviors
metrics
required greeting; values quii I
speed of check in/o ut;
(Whatskills and
actionsmust
percent room cleaning
infractions; and percent
I
ouremployees guests receiving Hotel
demonstrateif our International required
companyis to achieve greeting on arrival
itsstrategicgoals?)

t I
2. Strategic HR Chapter 4 , Job Chapter 7,
activities metrics
(What HRfunction
Analysis
Chapter 5,
Recruiting
Chapter 6,
Testing Interviewi ng I
Percentage of Number of Percentage of Percentage of
should wefocus on,
and how should
employees with
updated job
applicants employees hired applicants receivin g
str uctured interview
I
per recruiting based on validated 1
we measure its
efficiencyand
descriptions source; number
of qualified
employment test
I
effectiveness?)
applicants/
positions I
T I
l. Hotel Intern ational
Basic Strategic Themes
I Create Service-Orie
nted Embed CoreValues Encourage Personal Emphasize I
Workforce Employee Growth and Partnershipand
(What basic themes
must we in HRpursue to I Learning Senseof Ownership I
help Hotel International
achieve its strategic goals?) 'I

Figure 4.10 I

HR Scorecardfor Hotel International Group•

tvotr 4 " abhrev,aiPd e~.imp le show ing selected HR practices and out comes a,med ar implementing the comp em ive strategy, "To use superior guest
wrv ,c1' ' lo differp1111a
te tht. Hotel ln1ernauonal prope rties and th us increase the length of stays and the return rate of guests. and thus boost revenue s and
pro(Hah1IHy and l,p/p rhe firm expand geog raph ically.")
 °
4 Job Analysis

Endnotes
1. Evered, James. 1981. "How to Write a Good Job 5. Dhanan, V. and Aust ria, C. 1992, "Where Workers
Description :' Supervisory Management , April, p.16. Manage Themselves " World Executive's Digest,
Octobe r, 14-16
2. Chappell , Lindsay, 2001, "Mercedes Factories
Embrace a New Order :' Automative News, May 28. 6. Mak, May Yoke. 2000. "Self Manag ement Teams in
Becton Dickinson Med ical Sing apo re:· Productivity
3. Hammer , Michael and Champy, James. 1993. Digest, Decemb er, 9- 14.
Reengineering the Corporation. New York: Harper
Business.
7. Dhaliwa l, Rav. 1996. "Hote l Staff Can Spend $2,800
on Upset Guests-At Ritz Carlton autho rity goes
4. Moravec , Milan and Tucker, Robert. 1992. "Job w ith responsibility: · Straits Times, January 2.
Descriptions for the 21st Century:' Personnel Journal,
June, 37- 33.

0 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
 e r ing Obiectives
After studying this chapter, you shou ld be
able to:

1. Explain the main techniques used in

HR planning and forecasting.
2. Discuss the main interna l sources of
candidates .
3. Discuss the main external sources of
cand idates.
4 . Explain how to recruit job candidates.
5 . Develop a "help wanted" ad.
6. Discuss recruitment practices in some
companies in Asia.
 part
Chapters
HR Planning ...
C
and Recruiting -·
~

3
<D
A
s one who had been in the field for
several years, HR Director Li was aware
of the importance of effective recruitment .
to discover that the hotel was not paying
attention to recruitment. Individual hotel
managers would put up some "help
....
::,
If Hotel International did not get enough wanted" ads when they had positions to 0
applicants, it could not be selective about fill , and no one had any measurable idea :::,
a.
whom to hire. And, if the hotel could not be
selective about whom to hire, it would not
get the customer-oriented employees that
the hotel needed to provide good guest
of how many applicants these ads were
attracting or which recruiting method was
the best. Li knew that it was time for her
to pay attention to the hotel's recruitment
.,,
-
services. Li was therefore disappointed activities. C
0
(D
3
<D
....
::,
 Part 2 e Recruitment and Placement
HR planning ---
The process of deciding
what positions the company
has to fill and how to fill
them.
Q.uickQ.uiz
e W hat is HR planning ?
0 Explain the variou s techni q ues used
in fo recasting HR needs .
Figure 5.1
Steps in Recruitment and Selection
Process
Recruitment And Selection Process
In the pr evious chapt er, we di scussed job anal ys is and meth ods that manage rs
use to create job descriptions and specification s. The purpo se of this chapter is
to improve your effectiveness in recruiting employee s. The main topic s include
HR planning and foreca sting , recruiting job candidate s, and using applic ation
form s.
- ---.. HR planning is the first step in the recruiting and selectin g process . We can
view this process as a series of step s as shown in Figure 5.1.
o Decide what positions you need to fill, by using e111 ploy111
e11tpln1111i11
g n11d
forecasting.
o Build a pool of candidates for these jobs by recr11iti11 g internal or external
candidates.
o Ha ve candidates compl ete npplicntio11 forms and under go a screening
interview.
e Use selection tools like tests, background check, and ph ysical exams to
identify suitable candidates.
o Decide whom to make an offer to, by asking the supervisor and other s on
the team to interview the candidat es.
We discuss recruitment and selection in this and the next two chapt ers. This
chapter focuses on HR planning and forecasting and on recruitment technique s.
Chapter 6 discusses selection techniques . Chapter 7 focuses on interviewing.
,-\ ,-\ ,-\
I I I
I I
I I
~ Candidates ; I
I 1
4
~::~i;~·~;;;i
forecasting
Reauiting:
Builda pool
of candidates
I ) _, --)-) _, ' -)-~) -· ·--~Candidate
becomes
employee
Applicants Use selection Supervisors and
complete tools like tests others interview final
application to screen out candidates to make
forms most appl icants final choice
PlanningAnd Forecasting
In doing HR planning, a company decides what positions to fill, and how to fill
them. HR planning is an important part of a company 's strategic planning process.
Plans to enter new businesses , build new plants , or reduce costs will influence the
types of positions the company needs to fill. Figure 5.2 shows the link between the
company's strategic plan and HR plan.
One basic question is whether to fill the openings with current employees or
by recruiting from outside? Each option produces its own set of HR plans. Current
employees may need training before they are ready to fill new jobs. Going outside
requires deciding what recruiting sources to use.
In forming HR plans, managers make some basic assumptions about the future.
They need to forecast three factors:
o HRneeds
o Supply of internal candidates
u Supply of external candidates.
 5 e HRPlanning and Recruiting

Employer' s Strategi c Plan Figure 5.2

Linking Company'sStrategicPlan to
Diversify? HR Plan
Integratevertically?
Expand geographically?
On what basis should we compete?

Employer's
t
Marketingand
'1,
Production
'1,
Financia l
-!,
Functional sales plans plans plans
plans

l
Personnel
:r:
Training and
:r:
Compensation
:r:
Labor
*l
Securityand
plans
?- development
plans
"?- plans
? relations
plans ?- safety
plans

Personnel Employee
forecasts selecti
on
plans

~
f/f/f/• ••••
"•••••
'"'""
" """"

"The development in the bo.y Ol'eo.is going to bring

higher demand for jobs and frequent applicant s ..."

Forecast~ng HRNeeds
The first step in HR plann ing is to forecast reven ue and then estimate the nu mbe r
of perso ns needed to achieve this volume. H R managers use techn iques as show n
in Figure 5.3.

Forecast Techniques

J
1. Trendanalysis
J
2. Ratio analysis
t J
Figure 5.3
3. Scatter plot 4. Computer forecast S. Managerialjudgment
ForecastTechniquesin HRPlanning
 Part 2 o Recruitment and Placement

Trend analysis ----------.. Trend Analysis

Study a company's past HR
needs over several years to
predict future needs.
ln tre nd analys is, a company computes the numb er of emp loyees at the end of eac h
of th e last severa l years, or the numb e r in eac h su bgro up (like sa les, pr od uction, and
administration) at the end of each of those yea rs. The purpo se is to id entif y trend s
that may continue into the future. Trend ana lys is can prov ide an initia l est imat e,
but employment leve ls rar ely depend ju st on the pa ssage of time. Other factor s
(like changes in sales vo lum e and productivity) also affec t staff ing nee ds.

Trend analysisis usedto identify trends

that may continueinto the future by
computing the numberof employeesat
the endof eachof the last several years.

-
------- -- -1111111a
-

Ratio analysis -- ---
A forecasting technique to
determine future staff
nee ds by using ratios
between e.g., sales volum e
and the number of
employees needed .
Scat ter plot
A graph ical met hod used
to identify th e relationship
between two variables.
Ratio Analysis
In ratio an alys is, a company mak es forecasts ba sed on the ratio between:
o Some causa l factor (like sa les vo lum e) and
o The numb er of employees need ed to ac hieve th at volume.
Scatter Plot
A scatte r pl ot is a graph that shows how two variab les (suc h as a mea sur e of
busine ss activity and th e company' s staff ing leve ls) are related . If they a re, then
if the company can forecast the leve l of bu siness act ivity, it sho uld also be ab le to
estimate its HR requirements.
For examp le, assume a 500-bed hospita l plans to expa nd to 1,200 beds over the
ne xt five yea rs. Th e HR dir ector wants to forecast th e requirem en t for nur ses . She
d ecide s to determine the relat ionship between the s ize of the hospital (in term s
of number of bed s) and the number of nur ses needed. She ca lls eight hospital s of
va riou s sizes and get s the following number s:

Number of Beds Number of Nurses

200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
 5 0 HRPlanningand Recruiting

(1210) Figure 5.4 . .

1200 --------------------- ,,! ,;
Determiningthe Relat1onsh 1p
,; BetweenHospitalSize and Number
,;
,; of Nurses .
<I)
1000 ,;
,; Note: After firr ing che line. yo u ca~
QJ
<I) projec r how many employees you II
:i
z
• need. given your proiected vo lume.
-o 800
~
~
<I)
"iii,
£ 600 •
0
:;;
.c
E
::,
400
z

200

200 400 600 800 1000 1200 1400

Hospital Size(Number of Beds)

Figure 5.4 shows hospital size (number of beds) on the hori zont al axis and
the number of nur ses on the vertica l axis. If the two factors are related , th en the
point s w ill tend to fall along a st raight line, as they do her e. If you care fully draw
in a line to minimi ze th e distance s betwee n the line and each one of the plotted
point s, yo u w ill be ab le to estimate the numb er of nur ses needed for each ho spital
size. Thu s, to prepar e for a 1,200-bed hosp ital the HR director wo uld need abo ut
1,210 nurses. 1

Computer Forecast
Comp ut er so ftware program s may be used to forecas t HR requirements. Typical
data needed includ e direct labor hour s requ ired to prod uce one unit of product
and thr ee sa les projections- minimu m, maximum , and probabl e-for the spec ific
product line.
Based on such da ta, th e prog ram can generate figures on th e number of staff
neede d in each catego ry such as dir ect labor (such as assembly wo rkers), indirec t
staff (su ch as secretarie s), and superv isory staff.

Managerial Judgment
Whichever forecas ting met hod you use, manage rial judgment is still importa nt. It is
rare th at any historical trend, ratio, or relationship will simply continu e unchang ed
into the future. You have to mod ify the forecast based on factors- such as projec ted
turnover or a desire to enter new markets-y ou believ e will be important. It is
some times difficult to take a long-term perspe ctive, particularly when market
conditi ons change dramatically.

Forecasting
The SupplyOf Internal
Candidates
Knowing your staffing needs only satisfies half the sta ffing equatio n. Next, you
have to estimate the suppl y of both internal and externa l candidate s. Most
comp anies start w ith th e internal candid ates.
The ma in task is to determ ine wh ich current em ploy ees may be qualified to fill
the open ings. For this you need to know your curr ent employees' skills sets.
 Part 2 e Recruitment and Placement
Qualifications ----
inventories
Records showing employees'
educat ion, career and
development int erests,
langua ges, special skills etc.
to be used in selectin g
internal candidates for
promotion.
Personne l
replace ment ch arts
Compa ny records show ing
present performance and
promotability of internal
candidates for the most
imp ortant positions.
Position
replace ment card
A card prepared for each
position in a compa ny to
show possib le replacement
cand idates and their
qualifications.
Figure 5.5
ManagementReplacementChart
Showing DevelopmentNeedsof
Future DivisionalVice Presidents
--.. Mo st manag e rs look at the compan y' s qualifi cat io n s in ve nt or ies . Th ese
conta in data on emp loyees ' pe rformanc e reco rd , educ a tiona l backgro un d, a nd
promotability. They he lp manag e rs to decid e whi ch curr e nt e m ployees a re ava ilable
for promotio n or tran s fe r.
Manual Systems and Replacement Charts
Manag e rs u se sev e ral simpl e manual d evice s to tr ack empl oyees ' q ua lifica tio ns.
A "per sonne l inventor y a nd dev e lopm e nt reco rd form" co m pi les qu a lificati ons
in formati on on each emp loye e . Th e in formation inc lud es e du ca tio n, co mp any-
spon sored co ur se s taken , car ee r int e res ts, lan g uages, and sk ills .
Personnel Replacement Charts
Per sonnel repl ace m ent cha rts (se e Figure 5.5) a rc a no the r op tio n, par ticularl y
for top pos ition s in the co mp any . Th ey show the pr ese nt pe rforman ce and
promotability for eac h po sition' s potential rep lace me nt. As an a lte rnati ve, yo u can
develop a position repla ce me nt card. He re you crea te a ca rd fo r ea ch pos ition,
show ing poss ible replacem e nt s as we ll as th eir pr ese n t pe rform a nce, prom ot ion
potentia l, and trainin g .
Division
Vice President
Vice President Vice Presid ent Vice President
Production Sa /es Finan ce
• Jones, D. • . Ab le, J. • . Smith,B.•
Requireddevelopment: Required deve lopment : Requireddevelopment:
N one recommended e Job Rotation into finan ce None recommended
a nd production
e Executive d evelopment
co urse in stra teg ic p la nning
o In-house develop me nt
cente r-tw o weeks
PRES
ENT PROMOTION
PERFORMANCE POTENTIAL
Outstand ing •
Ready now •
Satisfactory •
Needs further training •
Needs improvement •
Questionable •
Computerized Information Systems
In compan ies w ith hundr ed s of e mploy ees , comput er softw a re syst e ms a re use d
to tra ck the qu a lificati ons of e mplo yees . In these syst em s, the em p loy ees and the
HR d e pa rtment ent e r information ab out th e empl oyee s' ba ckgro und , exp e rie nce,
and skills, oft e n u sing the comp any intr a ne t. Wh en ma nage rs nee d a per so n for a
pa rti cu la r po s itio n, they d esc rib e the pos ition (fo r instanc e, in ter ms of edu cat ion
and skill s). Aft e r scannin g its dat aba se of po ssi ble candi d ates, the sys tem p roduc es
a list of qua lified candid a tes.
 5 o HR Planning and Recruiting

Matter of Privacy
Data in the compa ny's personn el banks should be kept confidential. Th ere are
severa l reasons:
u There is a lot of employee infor mat ion in most such da ta bank s.
u Through Internet or intr anet, it has become easier for people to access these
data.
v In some countr ies, there are pri vacy laws that give emplo yees lega l rights
regardin g who has access to information about their wor k history an d job
perform ance.
It is not ea sy to balance the em plo yer's legal right to make thi s inform ation
ava ilable to th ose in the compan y who need it w ith the emp loyees' right to
pr ivac y. One ap proac h is to use the access matrices incorp orat ed in many data base
ma nag ement sys tem s. Th ese matrices define the rights of users (spe cified by
name, rank , or pos ition) to va rious kind s of access (such as "read only" or "wr ite
only" ) to each data base element. So the syste m may au tho rize empl oyees in
accoun ting to read inform ation such as the empl oyee ' s addre ss, phon e numb er,
and oth er sta tu s. Th e HR dir ecto1~ on the other han d, may both read and w rite
all items.

, Employers havea legalright to make

employeeinformation available to
thosein the companywho needit,
but theymust balanceit with the
employees ' right to privacy.

Hong Kong:Privacyof PersonalData

(www.pco.org.hk)
In Hong Kong, the Office of the Privacy Commissio ner for Personal Data issued a
Code of Practice on Human Resource Management. The code came into effect on
1 April 2001. It provides practical guidance to _data userswho handle perso_nal data
in performing HRmanagement activities. It deals with issues about collecting,
holding, accuracy, use and security, and data subject accessand correction in
relation to the personal data of prospective, current, and former employees.
 Part 2 ° Recruitment
Most leadingnewspapers and
businessjournalspublish economic
forecastson a regular basis.HR
managerscan use this information to
determine how difficult it will be to
recruitpeople.
o Whydo companiesneedto recruit
fromoutside?
0 Discus
s the mainexternalsources of
candidates.
R_
ec ruitin g -- ----
yield pyramid
The historical arithmetic
relat ionships between
recruitment leads and
invitees, invitees and
inte rviews, interviews and
offers made, and offers made
and offers accepted.
....
and Placement
ForecastingThe SupplyOf External
Candidates
If you do not ha ve enoug h internal cand idates to fill the vaca nt pos itions, you
have to find extern al candidat es. This may invo lve seve ral activit ies. r:or exa rnple,
yo u may want to conside r general economic cond itions and the expected
un empl oyment rate. Usually, the lowe r the rate of un employ ment, the more
difficult it will be to recruit peo ple.
Inform ation like this is easy to find. Mos t lead ing newspaper s o r bu siness
journ als publi sh economic forecasts on a regular bas is. Data on GDP, trade,
empl oyment, wages, and others are also publi shed by gove rnment age ncies.
HR in ACTION
V Manpower Planning Survey 2003
(www.hkihrm.org)
In January 2003 , the Hong Kong Institute of Human Resource conducted a
Manpower Planning Survey.The purpose was to capture the trends and ways
by which companies were managing their mclnpowerin terms of employee
compositionand impact of a clbser economic tie between Hong Kongand China.
. The surveydisclosed how companies managed their excess manpower.The
findings also showed that in 2002,22 percent of the surveyed companies had their
jobs outsourced. Information technology,security, and cleaning were popular
positionsoutsourced.
EffectiveRecruiting
ln filling a position, the more applic ants yo u have, the mo re selective yo u can be.
If only two candidat es apply for two openings, yo u may have no choice but to hire
them. But if there are 10 or 20 applicants, you can use techniqu es like interviews
and tests to select the best.
Consistent with Company's Strategy
Recruitin g is more complex than most manage rs thin k it is. It does not just involve
placing ads or calling empl oyment agencies. One important factor is that your
recruitme nt efforts should fit into the comp any's stra tegic plans. For example,
dec isions to expa nd abroad or to fill a large numb er of openings imply that you
have to carefully think through when and how you will do your recruitin g.
Second, some recruiting methods are more effective than others, depending
on the type of job you are recruiting for and what your resources are. Third , the
compan y's success in recruitment may depend on non-recruitm ent HR policies such
as being an indu stry leader. The bottom line is that your recruitment plans (and HR
plans in general) must be internally consistent and supp ort the compan y's strategy.
The Recruiting Yield Pyramid
Some employers use a recruiting yield pyramid to calculate the numb er of
applicants they mu st attract to hire the required numb er of new empl oyees .
In Figure 5.6, the company knows it needs 50 new entr y-leve l account ants
the next yea r. From experi ence, it also knows the ratio of offers made to actual
new hires is 2 to 1; about half the peop le to whom it makes o ffers accep t them .
 5 o HRPlanningand Recruiting

HR in ACTION
Recruitment Assistance
In Hong Kong,the LabourDepartmentprovidesa wide ~a.ngeof servicesforjob
seekersand employers.It givespracticaltips.on job-huntingand job ir'lterviews . Its·
publicationA Comprehensive Guid~on EmploymentforJobseekers providesdetailed,
usefulinformation.The department alsohas an interactiveemploymentseryice
(www.jobs.gov.hk).Other usefuljob-relatedwebsitesare:www.careers .labour.gov.hk,
(www.jobs.gov.hk). .
In Singapore,at the Ministryof Manpower,the WorkforceDevelopment Agency
(WDA)providesusefulinformationon employment.Its brochureon Labor.Market
Highlights givesa quickoverview of importantlabormarketstatistics,includingjobs
in demand and the occupationalskillsneeded. TheJobSeeker's Guidesare a series
of information guides describing jobs,earnings, and career prospectsin specific
industries(www.wda.gov.sg).

The moreapplicants you have, the

Similarly, the compan y know s that the ratio of candid ates inter viewed to offers moreselective you can be.
made is 3 to 2, while the ratio of candidate s invited for interv iews to candidat es
actually intervie wed is about 4 to 3. Finally, the compa ny knows that of six leads
that come in from all its recruitin g efforts, only one applicant typically gets an
interview-a 6 to 1 ratio. Given these ratios, the company knows it mu st generate
1,200 leads to be able to invite 200 cand idates for interviews. It will then get to
interv iew abou t 150, and from these it will make 100 offers. Of those 100 offers,
about 50 will accept.

New hires Figure 5.6

Recruiting Yield Pyramid
Offersmade (2 : 1)

Candidatesinterviewed (3 : 2)

200 Candidates invited ( 4 : 3)

1,200 Leads generated ( 6 : 1)

InternalSourcesOf Candidates
Filling positions with internal candid ates has benefits as shown in Figure 5.7.
On the other hand, it has the following disadvanta ges:
v Employ ees who apply for jobs and do not get them may become unhappy.
It is important to tell unsuccessful applicant s why they were rejected and
what impro veme nt they need to be more successful.
Y Many compan ies require their man agers to post job open ings and interview
all inside cand idates. Yet the mana gers often know ahead of time exact ly
whom they want to hire. Requirin g these manage rs to interv iew a stream
of un suspecting inside candidat es can be a was te of time.
v Inbreed ing is another potential drawback. When all manage rs come up
through the ranks, they may have a tendency to maintain the status quo,
when a new direction is what is required.
 Part 2 e Recruitm ent and Placement

Figur e 5.7
Benefits of Internal Candidates

Company has a more accurate

view of persons'skills.
t Internal candidatesare
more committed to
company.

Mora le m ay rise
whe n e mp loyees see
promotion as rewards
fo r loya lty and training
a nd competence .
+- Internal candidates
need lessorientation.

Finding Internal Candidates

Job postin(X._____ _ _
Publicizing an open job to
emp loyees and listing its
at tr ibut es, like qualifications,
sup ervisor, wo rking
schedule, and pay rate.
Fo r prom o tion from with in, n-1os t compani es use job p ost ing, HR reco rd s, and
ski lls bank s. Job po s tin g mean s pub licizi ng the op en job to e mpl oyees (po stin g
on bu llet in board o r intran e t) and listin g th e job' s attr ibut es such a s qua lificat ion,
superv iso r, work sc hedul e, a nd pay rate . Job po sting ca n be a goo d practice if it
e ncourage s the tran sfer and promoti o n of qu a lified internal ca ndidat es.
HR reco rds a re a lso im po rtant. An exa min a tion of HR records (includin g
app licat io n form s) ma y revea l e m p loy ees w ho a re wo rkin g in jobs bel ow th eir
education or skill lev e ls. It ma y a lso revea l p e rso ns w ho have pote ntial for furt her
training or who al ready have the rig ht backgro und for th e ope n job.

Re-hiring
Qui c kQuiz
Rehirin g former employ ees has its pros a nd con s. O n the plu s sid e, form er
0 Disc uss th e mai n sources of inte rn al e mplo yees are known to their current co-wo rk e rs. The y a rc al rea d y famil iar
cand idates. w ith th e co mpany 's cultur e, style , a nd w ays o f do ing thin gs. O n th e oth e r hand ,
0 What are the advantages of interna l e mpl oyees w ho le ft m ay return w ith a less- than-po sitive att itude. And hirin g for mer
recruiting 7
e mpl oyees w h o le ft for g ree ne r pa stu res back in to better pos ition s may sig n al yo ur
cu rr en t e mpl oyees th at th e bes t way to get ahead is to leave the compa ny.

Succession planning
The process of ensuring a
suitabl e suppl y of succe sso rs
for current and future sen ior
jobs .
SuccessionPlanning
In s u ccess ion plannin g, a company identifi es, assesses, a nd deve lops e mplo yees
to fill futur e key job s. Th e proce ss in volve s th e fo llow in g steps as show n in
Figure 5.8.

I ..,,
Step 2 : Assess candidates
After identifyingfuture key positions,the managementteam assesses candidatesfor
thesejobs. It then providesthem with the developmental experiencethey need in
\. these positions.

Figure 5.8 Step 3 : Select those who will fill the positions
) ! Pf'' • )t!CC P SSlOf1 Plan ning Top m a na ge m ent se lects those who will fill the key positions.
 5 o HR Planning and Recruiting

HR in ACTION
Succession Planning in Singapore Airlines
In Decembe r 2007, Singapore Airlines (SIA)announced the promo tio n of seve ral
vice presidenls. On the face of it, this came across as a routine anno uncement. But
a close r examina tion suggests that this is a serious prepa ration for a gen eratio nal
change in the up pe r echelo ns of SIA'sleade rship. SIA'sicon ic stature and
phenome nal success is not by cha nce. It is.the prod uct of careful and d ilig en t ·
planni ng. And this includes success ion planning.
To remain strong, good compa nies must manage their succession plan ning well.
This is to e nsure that younge r talented people are given the op po rtunity to move up
the co rpo rate ladde r to important positions where· their abilities can be pu t
to the test. In their new ap pointments, they will gain more.exposure and be given
the chance to prove themselves.2

SourcesOf ExternalCandidates
A co mp a n y m ay not g et a ll th e em p lo yees th ey nee d from int ern a l so ur ces. It w ill
th e n look a t th e exte rn a l so ur ces by u s ing these meth o d s:
u Adv e rtis ing
u Em p loy me nt age n cies .

Advertising
T he selec tio n o f th e m ost s ui tab le medium-b e it th e loca l p ap er, TV, o r th e Int e rn et-
dep e n d s o n th e p o sit ion s for w hich th e com pa ny is rec rui ting. For exa ll"1 p le, th e
lo cal n ew s p ape r is u suall y th e b es t so ur ce for blu e-co lla r wor ke rs, a nd low er-l eve l
admi ni str a tive e mpl oy ees . For s pecialize d empl oy ees , th e co m pa ny ca n adve rti se
in tr ad e a nd pr ofe ss io n al jo urn als . Simil a rly, ad s in p u b licatio ns s u ch as Asia Inc,
Asin11Wall Street jo11mnl, Far Ens/em Eco11 0111i
c Review, an d th e lnternntionnl Herald
Tribune can b e good so ur ces of seni or m anag ers, es p ecially th ose w ith int e rn a tio n a l
exp erie n ce. O ne dr a wb ack of tra d e journ a l ad ver tis ing is th e lo ng lea d- tim e .

''We Wo.ntYou!'

Recruitmentadvertising through
the Internet has increasedas it is
a fast and effectivemeans to get
the candidatesfor a job.
 Part 2 e Recruitment and Placement

Help Wanted Ad (Monster.com) ~torntcr lobs • Get work. Network. BuUd o better carttT. Today"s. lhe ddy. • ~lcror,oft Internet E>cpor« prow:INf by ~ff~ ._. 1_1
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Monster.
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Rcs uhs I

Th e re m ay be a m on th o r more betwee n inse rtio n of the ad a nd publi cat ion

of th e jo urn al or speciali ze d pape r (alth ou gh m ore ar c su pp lem entin g their
h ard -co p y publi cat ion w ith onlin e we bsites).
Con structi on of th e ad is imp o rtant. Exper ienced ad ve rtise rs follow th e AIDA
prin cipl e (attenti o n, int e res t, des ire, ac tion) to const ru ct ads.
Th e im age above shows an o n-lin e rec ruitm ent we bs ite. How docs an ad in
s u ch a we bs ite att ract atte ntion?
Deve lop in teres t in th e job. Yo u can crea te in teres t by th e natur e of the job itself,
w ith lin es such as "man y oppo rtuniti es for ad va nce men t." You ca n al so u se oth er
as pec ts of th e job, s uch as its locat ion, to crea te int e res t.
Crea te d es ire by highli gh ting th e job's int eres t fac tors w ith wo rd s su ch as
"tr ave l" or "c ha llenge. " Finall y, ma ke sur e th e ad encou rages act io n w ith a
statem ent like "ca ll toda y," or " please forwa rd yo ur res um e."

Employment Agencies
Th ere are va riou s ty pes of empl oy ment age ncies:
v Gove rnm ent and non-profit age ncies
u Co mm ercial age ncies.
Gove rnm ent and Non-profit Agencies ln many As ian co untri es, th ere are
govern m en t e mpl oy ment age ncies . Mos t of the m ar e re lated to gove rnm ent
? ep artm en ts in charge of m anp owe r or empl oy men t. These age ncies are an
im po rtant so ur ce of blu e-collar and w hite-co llar wo rke rs. O th er empl oy men t
age ncies are tied to non-profit orga ni zat ions. Most profess ional assoc iat ions have
u nit s th at help memb ers to find jobs.

Comm ercial Agencies Co mm erc ial age ncies are imp o rtant sour ces of clerical,
wh ite-collar, and ma nage ria l personn el. Th ey charge fees for eac h appli cant they
place . Th e e mpl oyer s usually pay the fee . They correctly ass um e this is the best
way to at tract qualified , cu rrentl y empl oyed app lican ts who m ay not be w illin g to
sw itch jobs if th ey have to pay th e fees.
 5 ° HR Planning and Recruiting

Using an Agency
Figure 5.9 shows several reasons why a company uses an agency.

Companyhad difficulty in
Figure 5.9
the past cogeneratea pool of Reasonsfor Using an Agency
qualifiedcandidates.

Companywantsto cut down

on interviewingtime.

To use agenc ies effect ively, a company has to pay attention to the follow ing:
u Give the agency an accurat e and comp lete job desc ripti on .
u Make sure that tests, application forms, and interv iew s are part of th e
age ncy' s selection process.
u Periodically rev iew data on cand idate s accepted or rejected by the compan y,
and by the agency.
u Check on the effectiveness and fairness of th e agency's screen ing proce ss .
..., Screen the agency. Check with other manager s or HR people to find out
wh ich age ncies have been the mos t effective at filling the kind of po sition s
you need to fi11.
u Review the Internet and a few back issues of the classified ads to di scove r
the agencies that handle the positions you want.

Temp Agencies and Alternative Staffing

Compa nies often supplement their permanent workforce by hirin g contin gent or
temporary wo rkers, ofte n throu gh temporary help emp loyment age ncies . The se
worke rs a re also known as part-tim e or just-in-t ime workers.
Historically, compan ies have always used "temp s" to fill in for
permanent empl oyee s who wer e on sick leave or on vacat ion.
To incr ease productivity, compa nies are using more temp
wo rkers . Thi s is becau se temp s are paid only when they are
working. Employer s can save the time and expense of perso nally
recrui ting and training new wo rkers.
The benefit s of conti ngent worker s do not come w ithout a price.
They m ay be more productive and less expen sive to recruit and
train , but contingent wo rkers from tempo rary agencies gen erally
cost employer s 20 percen t to 50 percent more than comparable
permanent wo rk ers. This is beca use the company ha s to pay fees
to the agency.

The numberof freelance workers

ExecutiveRecruiters are increasing all the over the world.
AlemiTakada is a noted Japanese
Execu tive rec ruit ers (also called headhunt ers) are spec ial emp loyment age ncies freelance animator who manages
reta ined by employers to find senior position s for their clients. Some of them her workload and does projects for
companies all over the world through
speciali ze in s pecific indu stries. an Internet agency that represents
As show n in Figure 5.10, there are advanta ges and disad vant ages in u sing about 15,000 freelancersin media
execut ive recruiter s. and publishing.
 Part 2 ° Recruitment and Placement

Advantages Disadvantages
a Executive recruiters are useful. e The empl oye r has to exp lain co m pletely what sort of
e They are able to contact qualified, cu rrentl y employed candid ate is requir ed and why .
candidates w ho are not active ly look ing to cha nge jobs. e Some recruit ers are salespeople .
e They can also keep you r company's rathe r than th e o They may be more inte rested in persuading the emp loye r
professional's name confidentia l until late int o the search to hire a candidat e than in finding one who will really do
process. the job.
e The recruiter can save top manag ement's tim e by
adve rtising for the posit ion and screening what coul d turn
out to be hundreds of applicant s.
e The recrui ter's fee may turn out to be insignificant
com pared w ith th e cost of the executive time saved.

Figure 5.10
Advantagesand Disadvantagesof
UsingExecutive Recruiters In choos ing a rec ruit e r, th e follow ing g uid e lin es ma y be u scf ul: 1
1. Make sure tire firm is capable of co11rl11cti11g a tlrorouglr senrclr. In the
Un ited States, und e r th e code of th e Assoc ia tion o f Execut ive Rec ruitin g
Cons ul tan ts, a rec ruit er cannot appr oac h the exec uti ve ta le nt of a for mer
clien t for a vaca ncy w ith a new client for a pe ri od of two yea rs after
co mpl et in g a sea rch for the forme r client. Sinc e for m er cli c nl s a rc "off limi t"
for two yea rs, th e recru ite r mu s t sea rch from a co ns ta ntl y dimin ishin g
pool.
2. Meet the person who actually handl es the assig11111
e11t. If thi s p e rso n doe s
not h ave th e ab ility to find to p ca n d id ates a nd se ll th em to yo ur co mp an y, it
is unlik ely yo u w ill ge t to see th e bes t cand ida tes .
3. Ask how much the search firm clrarges.
Th ere a re seve ra l factor s to keep in mind. Sea rch firm fee s ra n g e from
25 to 35 perc ent of the annu a l in co m e of th e p os ition. The y arc ofte n pa yab le
o n e- thir d as a ret a in er a t th e o ut se t, o n e-t hi rd a t th e end of 30 day s, a nd
o n e-th ird aft e r 60 da ys. Oft en a fee is pa ya bl e w he th e r o r no t th e sea rch is
te rm in ate d for any reaso n. T he o ut -o f-poc ket expe nses a rc ex tr a a n d co ul d run
to 10 to 20 pe rcent of the fee itse lf, a nd so m e tim es m o re . Get the ag ree m e n t in
w ri tin g .

Campus Recruiting
Ca mpu s re crui tin g is an import ant so ur ce of m an ag em ent trai nees, profe ss ional
an d tec hni ca l e mpl oyees . The re are two main prob lem s w ith ca m pu s recr uitin g
(see Figure 5.11).

Figure 5.11
Problems with Campus Recruiting Two Main Problemswith
Campus Recruiting

J * l
It is expensive and time Recruiters themselve s may be
consuming . ineffective .
0 Schedu les must be set in advance
o Some recruiters are unprepared
° Comp any brochures printed
(') Records of interviews kept
o They do not effectively screen the candidates
0
o They must be trained before th ey visit
Much time spent on campus campus

· - ~--~.rr-r- ..- 7 - ·--- - •

, ::•i 1,1

' •,:.,'
 5 e HRPlanning and Recruiting

Campu s Recruiting Goals

The campus recruiter has two main goals:
u To determine wlzetlzera candidate is worthy of f11rt/zerco11siderntio11
.
Exactly which traits to look for will depend on the company' s specific
needs. They include communication skills, education, experience, and
interpersonal skills.
v To attract good candidates. Employers have to choose recruiters and
schools carefully. They look among their employees for those who can do
the best job of identifying top applicants and filling vacancies. They select
universities based on their reputation as well as performance of employees
whom they have hired from these institutions.

"Would 9ou so.9tho.tyou o.reor will be o.go-getter?"

JOIN
us

The cornpany belie ved 9eftin9 the be.stones eo.rl9.

On-Site Visits
After the campus recruitment exercise, some companies invite good candidates
to visit their workplace. In planning such visits, they may find the following
guidelines useful:
u The invitation letter should be warm and friendly but businesslike. It
should give the person a choice of dates to visit the company.
u Assign a specific person to meet the applicant and to act as host.
v A package describing the applicant's schedule as well as other information
regarding the company- such as a1rnual reports and employee benefits-
should be waiting for the applicant.
u Carefully plan the interviews and adhere to the schedule.
"' Give each candidate undivided attention. Lunch should be hosted by one
or more other recently hired graduates with whom the applicant may feel
more at ease.
The employer should make an offer, if any, as soon as possible, preferably at
the time of the visit. If this is not possible, the candidate should be told when to
expect a decision. If an offer is made, the employer should keep in mind that the
applicant may have other offers.Frequent follow-ups to "find out how the decision Companiesarrangingon-sitevisits
process is going" or to "ask if there are any other questions" may help to attract shouldassigna specificpersonto
meetthe applicantandto act as
the applicant. host.
 Part 2 ° Recruitment and Placement

Internship
Many stude nt s get their jobs th ro ug h int ernship, a recruiting approac h that
ha s become popular in rece nt yea rs. Int er ns hi p ca n be a w in-win s itua tio n for
b oth stud ent s and empl oyers . For s tudent s, it may m ean be in g able to lea rn
busine ss sk ills, know potentia l empl oye rs, and learn m ore abo u t the ir ow n likes
(and di slikes) in choo s ing ca ree rs . And employe rs rnn use the int e rn s to m ake
u sef ul co n tr ibuti on w hil e eva lu a tin g them as poss ible full- time e mpl oyees.

Referral
Emp loyee referra l is another method. The co m pany ann o un ces job vaca nc ies in its
newsletter, notice board, or in tra net . Cas h rewards may be offered to successf ul
referra ls. Emp loyee refe rr al ha s its pro s and cons . C urr ent emp loyees ca n prov ide
accurate in for mati on abo ut the a ppli cants they arc referri ng . The new employees
m ay know more about the working cond itions afte r speak ing w ith frie n ds the re.
So meti mes, referrals may backfire if an emp loyee's refer ra l is rejected a nd the
em ployee becomes dis satisfied.
Referra l is espec ially s ui tab le for recru itin g high -tec h e1T1ployee s. Sou rces like
the Interne t are w id ely used for recru iting high -tec h wor ke rs, but so me expert s
say that the most effect ive rec rui ting meth od is to encourage ex isti ng e mpl oyees to
refer quali fied friend s and colleagues.

Walk-In
Walk-in (direct app lication s mad e at the off ice) is a good so urc e of hourly -pa id
workers. The company puts up s igns outside the office or at factory ga te. Many
employer s give eve ry wa lk-in app licant a brief in te rview w ith so meone in the
HR office, eve n if it is only to get in format ion on the app licant " in case a posit ion
should be open in the nea r futu re." Good busine ss pract ice a lso requ ires answer ing
all letters of inquir y from app licants promptl y and courteous ly.

RecruitingByThe Internet
More and m ore people are go ing onlin e to look for job s. Co mpanie s are making it
easy for job see ker s to use their webs ites to hunt for jobs . Some compan ies use the
Inte rnet to sea rch for app lica nts in reve rse.
In gener al, the web is a cos t-effective way for co mpanies
to publici ze ope nin gs. A newspaper ad ma y have a lifes pan of
about one week w hereas the Internet ad ma y last m any more
day s. Respon se to electronic job listing ma y co me the sa me day
the ad is posted, whereas responses to newspape r ad s may take
seve ra l day s.

An Effective Web Ad
Figure 5.12 sho ws an effective Web ad fro m Monster.com. It uses
co mp el ling wo rds such as "s ucces s dr iven profes sionals" and
"independence." It provides good reasons (such as "s ix-figure
income") why you wou ld want to wor k for thi s comp a ny. And, it
start s off w ith an atte nt ion-grabbing openi ng line.
IT compan ies from Singapore often send
recruitment teams to Bangalore, where
about 25 percent of India's 130,000
sohware engineers are locat ed
 5 ° HR Plann ing and Recruiting

INEFFECTIVE
WEBAD EFFECTIVE
WEBAD

Unix Solaris Admin./ Work for the World's

Windows 2000 Administrator Best Boss... You!

Exciting opportunity on ground floo r project for telecom/ lnternet
ventur e- local candidat es only at this time .
""** Might also consid er subcontr act if candidate has over 6 years
of Solaris ad min exp.***
Solari s Unix Solaris Systems Admin.
MUST have Windows 2000 Ad min experience.
MUST have at least 3-4 years plus of System Adm in experience.
MUST have at least 3 solid years of Solaris exp.
Looking for som eone who has solid experience working with data
storag e and how it works in enterprise systems. (Looking for
experi ence like RAID.)
Also must have: Windows 2000 and looking for someone with
specific Cisco switche s and routers (5500 and 6500 Series).
Now you can be in business for yourself, have your own office,
schedule your own time, and advance to management wit hin a
year. Add to that a six-figure income in the second year ... and
you have the dream career your talents deserve.
We have over 140 offices nationall y with over 60,000 clients .
Currently , our office in Tampa seeks entrepreneurial , success
driven professionals who will welcome the indep endence and
advantages of being a sales professional. You must have the
interpersonal / communication skills and highly professional
image to promote our indispensable services to the business
and medical communit ies.
We offer:
• Excellent commissions
• Proven repeat business
• Outstanding training
• No travel, nights or weekends

Figure5.12
Ineffective and Effective
WebAds
Source:Workforce,December2001 ©
Crain Communication,Inc.Reprinted
with permissi on.

Global Talent Search

Recrui ti ng int ernat io nally is imp or tant fo r several reasons. Sometimes t he employe r
has vi rtu ally rio cho ice. For examp le, m any M NCs are look ing in Chin a, Ind ia, and
Russia for h igh-te ch em ployees. Desperatefor nurses, hospit als in Hong Kong and
Singapore are recru itin g from the Phil ippi nes and China.
. . .

RecruitingEngineersfrom Bangalore
Duri ng th e past decade, IT co m panies fro m Singapo re have been send ing
recrui t m ent team s to the lnpian city of Bangalore that prod uces many IT specialists.
The Indian ed ucatio n system places impo rtance ·o n su bjects such as
mat hematics an d science. As a resu lt, m any stu d ents en t eri ng university have
chose n to st udy science and tec hn o logy. This helps_to prepa re ma ny yo.ung
Eng lish -speak in g g raduates fo r a caree r in the comp uter softwa re indust ry. There
are ab otit 130,000 soft wa re engineers in India an·d about 25 percen t of them are
i_n Banga lo re.• ·

DevelopingAndUsingApplication
Forms
A n ap p li cation form p rovid es four ty p es of information :
u You can mak e jud g m ent s o n sub stanti v e matter s, such as w h eth er th e
appli ca nt h as the edu cati o n and ex peri en ce to do the job .
u Yo u can dra w conclu sion abou t th e appli cant' s pr evi o u s pro g re ss an d
g ro w th , a trait th at is esp eciall y imp o rtant for mana ge m ent candid ates.
 Part 2 e Recruitment and Placement

a You can dra w te nt ative conclu sion rega rd ing the app lican t's stab ility based
on pr ev ious wo rk recor d.
o You may be ab le to use the dat a in th e ap plicat ion form to p redict w hich
cand id ates w ill suc ceed on the job and which w ill not.
In practice, mo st com panies need seve ral app lication forms. For technical and
manag er ial perso nn el, for exa mpl e, the form ma y requir e detai led a nswers to
que stion s abo ut the app licant's ed ucation and tra ining . The form for hou rly factory
wo rkers ma y focus on th e tools and eq ui pm ent the applicant has used .

Application Forms
(Complying with US Employment Laws)
Many As ian comp ani es are now operatin g in the Unit ed State s. They should be
awa re of US emplo yment laws. As sh ow n in Figure 5.13, there are certa in quest ions
to avo id in the app lication form .

Figure 5.13
ApplicationForms Application Forms
Employers should carefu lly review application forms to ensure that they corn ply w ith equa l
employment laws. Unfortunately, many appl icati o n form s still do not. Questions to bewa re of
include:
Education . A question on the dates of att endan ce and graduation from various schoo ls-acade mic,
vocational, or professiona l-is one potenti al violation. This question may be illegal insofar as it may
reflect the applicant's age.
Arrest record. The courts have usually held that emp loye rs violate Titl e VII by d isqualifying
applicant s from employment because of an arrest reco rd. This item has an adverse impact on
minorities , and employers usually can't show it's requir ed by business necessity.
Notify in case of eme rgency . It is gen erally legal to requir e the name, address, and phone number
of a person to notify in case of emergency. How ever, asking the relatio nship of t his perso n to the
appli cant could indi cate the appli cant's marital status or lineage.
Memb ership in organiz ation s. Many form s ask th e app licant to list mem bershi ps in
club s, organ ization s, or societies along with offi ces held. Empl oyers shou ld include in structions
not to in clude organization s that would reveal race, religio n, physical handi caps, marital statu s, or
anc estry.
Physical handicap s. It is usually illegal to requir e th e listing of an applicant 's physical hand icaps,
d efects , o r past illne sses unl ess the appli cation blank specifically asks only for those that "may
inter fere with your job perform ance'.' Simi larly, it is generally illegal to ask w het her the applicant has
ever rece ived work ers' comp ensatio n.
Marital status. In ge neral, th e appli cation should not ask w heth er an appli cant is sing le, marr ied,
div o rced, separated, o r livin g w ith anyone, or th e names, occ upations, and ages of th e app licants'
spo use or childr en.
Hou sing . Asking wh eth er an applicant owns, rents, or leasesa house may also be
di scrimin atory. It can adversely affect min ority group s and is d ifficult to ju stify on grou nds
of bu sine ss necessity.

Recruitment PracticesIn Asia

In As ia, recruitme nt prac tices vary from coun try to countr y. Such practice s are
influ ence d by the eco nom ic system, stage of economic deve lop ment, and cultural
facto rs. In coun tr ies such as Indo nesia, the Philipp ines, and Thailand , the re are
age ncies tha t recr uit worker s for employer s in Hong Kong, Singapore, South
Korea, a nd Taiwa n.
 I

5 ° HR Planning and Recruiting 119

Recruitment in China
In China , before the introduction of eco nomic reforms , emplo yme n t an d
recru itm ent we re carri ed ou t str ictly acco rdin g to government plans at all leve ls
in the econom y. Th e reforms have brought many chang es in recruitment practices.
Th e g uid elines on recruitment as sta ted in the Interim Provi sions on Recru itm ent
of Workers in State-owned Enterpri se are:
u Make recruitm ent op en to the society
u Assess and recruit base d on qualification s.
In recent yea rs, man y enterpr ises post job vacanc ies on bull etin board s and
worke rs are encouraged to apply compe titively. Recruihnent fairs are organized by
emp loyme nt servic e center s in the cities.5

Two -w ay recruitment and selection

Since the 1980s, the traditional practice of staffing throu gh a centrally plann ed
allocat ion sys tem ha s been g raduall y replaced by a mark et-oriented policy. The
objec tive is to attract and retain comp etent emp loyees to increase producti vity .
The new polic y also requir es the labor bureau to ass ist job seekers. A two-
way rec ruitm ent and se lection is wide ly used by emplo yers and job seekers. For
exa mpl e, uni ve rsity grad ua tes now introduce them se lves to compa nies by send ing
res ume s and attendin g interviews instead of bei ng ass igned the gove rnm ent. Th is
sys tem has impro ved the quality of staffing as it produc es a better fit between jobs
and applicant s.6

Recruiting managers for China operations

In his paper, McEllister sugges ts sev eral method s for foreign compa nies to recrui t
and reta in mana gers in Chin a. The external market is the talent pool ava ilable
outs ide Chin a. The intern al market com pri ses options ava ilable w ithin Chin a.
Figure 5.14 shows some of the meth od s.
The compa ny ma y identify some of its ow n mana ge rs w ho have the pote n tial
to su cceed in Chin a. The main advanta ge is that the perso n chosen is already
fam ilia r w ith comp any policy and operatio ns. McEllister has obse rve d th at some
comp anies perceive that because so meone is ethnic Chi nese or speaks Ch inese
that pe rson w ill be abl e to ope rate in Chin a. He cites seve ral exa n,pl es of ho w
managers from Ta iwan, Mal ays ia and Singapo re, ha ve had problems operating
in Ch ina.7

Recruit from overseas Identify

studentsfrom Figure 5.14
Chinesecommunit ies Chinastudyingabroad Methodsof RecruitingChinese
Managers

Methodsof
Recruiting
Chinese
Managers

Recrui~from existini . Recruit Chinese

expatriate commumtres graduates
Pa rt 2 ° Recruitment and Placement

L/ China's '!Green Card " .

With China's entry into the World Trade Organiz ation (WTO). the Ministry o f Public
Security has revised immigration cont rols and introdu ced a Chinese ve rsion o f the
"Green Card" syste m following interna tional practices . This card gra nt s pe rmane nt
residence right s to foreign spe cialists in the man ageme nt and sci~nce d isciplines,
and foreign inves tors of large amount s of capital.

Recruitment in Hong Kong

During th e past few yea rs, Hong Kon g Spec ial Admini stra ti ve Region (SAR) has
be en e ncoura g in g the inta ke o f for e ign s ki lled wo rk ers. Under the Ta le nt s Sche me
announced in Dec e mb er 1999, wo rkin g v isas a rc iss ued to ski lled per sons who
are d ifficult to recruit in Hong Kong. In Jun e 2001, the Admi ss io n of Ma inl and
Professional Sch e m e was introduc e d to attract res ide nt s fro m th e m a inland.
Previou s minimum requir em e nt s for grad u ates w ith postg rad u ate qu a lification or
abo ve ha ve bee n re m oved for areas in IT and financia l servic es .~

In 2008, th e Hong Kong go vernme nt relaxed rules to att ract more top q uality m ig rants.
The following· changes have bee n made to the Quality Migrant Sche me:9
e Accep t talented perso ns above the previous ceiling of 50 yea rs old.
e Reduce the requ ired numb e r of years of experience from 5 to 2.
0 Plac·e more e m phasis on language sk.ills. ·
e Allow non -loca l studen ts who have g raduated to rema in in Hong Kong for up
· to one year to look for job s.
e Give Middle Eastern citizens visa-free access to att ract Islamic cap ital investment.
o Set up a one-stop Internet service to e ncourage overseas applicat ions from
potentia l talents.

Discrimination laws
Durin g th e 1990s, th e Hon g Ko ng govern m en t int rod u ced seve ral di sc rimin at ion
laws. Th ese inclu ded:
v Sex Discrimination Ordina nce
l1 Di sab ility Di scrimination Ordinance
v Famil y Status Di sc riminati on Ordinanc e.
The Equa l Opportunities Commi ss ion ha s take n action on di scr iminator y
newspa p er job ad verti se men ts. 10

Recruitment in Indonesia
Alth o u g h the re is labo r surp lu s in Ind o nes ia, a sh or tage ex ists in th e tec hnical
and bu sin ess areas . Ther e is a hi gh d e mand for eco nomi c a n d sc ie n ce g radu ate s
es pec ia lly th ose from fore ign uni ve rsities.
As news p ape r advert isin g is not an e ffect ive m e th od of rec ruitment , in forn1~I
m ea ns such as wo rd of m outh attr ac t goo d res po nse. The netwo rkin g sys tem is
st ro ng. The re is a te nd e nc y for emplo yees to reco mm e nd fa mil y m e mb e rs and
fr ie nds to wo rk in th e sa m e compa ny.
 5 ° HR Planning and Recruit ing

Recruiting for eign workers

Accord ing to the Presidential Decree No.75/1995 on the Employment of Foreign
Workers, employers must give priority to Indonesian workers except for jobs that
require skills that Indonesian workers do not have.

Recru itm ent of civil servant s

Manpower planning and recruitment of civil servants are coordinated by the State
Employee Administrative Office, in cooperation with the respective government
depart ments. This office, together with the Minister for Administrative Reform
determines the number of additional employees to be allocated to each depart ment.
They arc also responsible for managing the government's personnel system,
including promotion, discipline, and tennination.11

Recruitment in Malaysia
In Malaysia, when recruiting staff, employers have to comply with
the governme nt's bumiput ra policy of proportionate racial mix.
In a multi-racial situation, many foreign employers have realized
that positions requiring communication with the authorities are
better handled by bumiputra staff. For sales positions, it is more
convenient to have employees who are from the same etlu1icgroup
as the clients.

Recru it ment methods

For newspa per advertisement, employers use both English and
Bahasa Malaysia. The popular dailies are the New StraitsTimes, the
Mnlny Mnil and Tire Stnr. Many companies use recruitment agencies
to fill senior positions, where confidentiality is important. Internal
promotion may create problems as employers are required to
observe ethnic quotas.

Recr uit ing foreign skilled workers

In Malaysia, there are guidelines for employing foreigners. There
are two main categories: expatriate personnel (mainly white-collar
workers and resident representatives of foreign companies) and
unskilled wor kers.
Companie s with more than US$2 million foreign capital will ?e
given resident status for five foreign workers on a permanent basis.
Companies with foreign capital below US$2 million are subject to
cond itions such as requirement to train Malaysian employees a nd
In Malaysia,employershaveto
to transfer technology. Executive posts may be filled by foreig1_1er s comply with the governme nt's
with the condi tion that such posts will be transferred to Malaysians bumiputra policy of proportionate
within ten years. Those requiring professional skills may be filled by racial mix.
foreigner s with the condition that such posts would be transferred
to Malaysians within five years. f'l d · h
WI1en fore1.gn comparnes .
. emp 1oy expatriates, app 11.cat1.ons must beb .I e. wit
·
tI1e Imm1grat ·1on Contro I Bureau o f the M'1111stry
· of 1nteno1 · . after
. o .·ta1n111gt11e
approval of gove rnment agencies responsible for the respective 1n<lu Slu es.

Preferent ial t rea t ment for MSC companies

In Malaysia, the Multimedia Super Corridor (MSC) is a national project for th e IT
ind ustry. Companies with the MSCstatus are given preferential treabn ent such as
remova l of limit on employme nt of foreigners.
 Part 2 e Recruitment and Placement

Recruitment in the Philippines

In th e Philippin es, a m o n g th e s ma ll companie s rec ruitm e n t is d o ne as th e need
a ri ses . It is commonly don e by wo rd of m o uth , a nd intr odu ctio n by fri end s
a nd relati ves . In lar ge co mpani es , rec ruitm ent is m o re for mal a nd better
planned. To avo id regu lar iz in g e mplo yees and uni o ni za ti o n, co mpani es use
pri vate plac e m e nt age ncie s for ca s ual worke rs wh o re m a in on th e payro ll o f
the agency. 12

O verseas Filipino workers

The numb e r of o ve rseas Filipino workers (OFW) is es timat ed to be two milli o n. The
o ve rseas lab or plac em ent pro g ra m was se t u p in the 1970s as a " tempo rary" m eas ure
to ease un em pl oy me n t. Thi s ha s beco me a pe rmanent feature w ith su ppo rtin g
orga ni zation s s uch as the Ph ilippine Over seas Emp loy ment Adm inis trati on
(POEA) , Over seas Work e rs Welfar e Admini stration, a nd labo r at tac hc sys te m. The
OFWs h ave become th e lar gest for eig n exch ange ea rn ers and se rve as a safety va lve
for the hi gh un empl oy m ent s itu at io n a t home .

Recruiting foreign workers

The Philippin e Co ns tituti o n ens hrin es th e gove rnm en t' s po licy to prote ct Philippin e
lab or agai ns t excess ive influ x of for eig n labor (Section 12, Article XII). This
mand ate is carr ied o ut by the Labour Code o f th e Philippine s. Ar ticle 40 requir es
a n alien to ob ta in an empl oy ment permit from th e Department o f Labour. Such a
p ermit w ill be iss u ed only wh en the re is no per so n avai lable in th e Philippin es to
perform th e se rvic es for which the a lien is hir ed. For com pani es in preferred areas
of in ves tmen t, empl oyme nt pe rmit s are iss u ed up on the recommend ation of the
gove rnm e nt agency sup ervi sing that compan y.

Recruitment in Singapore
The local d a ily news paper s The Straits Times (Eng lish) and Lin11/1 e Zhao Bno(Chin ese)
h ave ex te nsiv e class ified ads for job vacancies. Amo ng the var io us recr uitm ent
m ethods , th e print media is used m os t wid ely to recruit a ll leve ls of empl oyees
such as ad mini strativ e ass is tant s, technici ans, sup e rvi so rs, a nd m ana ge rs .
With the exception o f executive searc h firms (the second mos t frequent ly used
m eth od for m anagers), compan ies u se the follow ing methods regardl ess of job levels:
emp loyee referrals, wa lk-ins, emp loyme nt age ncies, and rehires. O ther inn ova tive
11
method s includ e career fairs, electro nic med ia, and campu s career fairs.
Anot her s tudy rev ea led th at amo ng th e num erous
rec rui tment meth ods, pam phl ets, signs and bu s ad vc rti se ments,
radio and TV ad ve rtisem ent s we re am ong the leas t populai~
w ith less than 20 percent of compa nies us ing any of th ese
meth ods. News p aper adv erti se men ts were con s id ered by
most compani es to be mos t effect ive in recr uitin g manager s.
Exec u tive search firm s and pro fess ion a l so cieties we re used
for higher leve l pos ition s. 1"
In the publi c secto1~ recru itm ent is cen trally han d led by
the Public Serv ice Commi ssion (PSC). Th e public sector is a
major empl oyer es pecially of graduat e manp owe r, ta king up
abo ut 60 percen t of g radua tes from local tertiar y inst ituti ons.
Scholarship s offered by the PSC, Mini stry of De fence, and other
age ncies such as the Econom ic Deve lopm ent Boa rd and A*STAR
Publicand campuscareer fairs are attr act the best post-seco nd ary stud ents, who then p ur sue their
0rnmonly used 1nSingaporeto g radu ate stud y in foreign and local uni ve rsities. The se s tud ents are bo nd ed to work
Prr 111nPw Pmployees
in the res pec tive agenc ies after gra du ation. 1'
 5 ° HR Plann ing and Recruit ing

Tr ipart it e G uidelines on Non -discriminatory

Adv ert isements
In 1999, th e M inistry of Ma np owe r, th e Nat iona l Trades Uni on Co ng ress, a nd
the Sin ga pore Na tional Em ploye rs Federation jo in tly iss ued so me guid elines on
non -di scrimin atory adve rti sement s.
Cr ite ria w hi ch should not be in job ad ve rtiseme nt s includ e: age, ge nd er, m arit a l
sta tu s, race, a nd relig ion. For exa mpl e, empl oyers shou ld avo id stat in g ag e as a
requir em en t. If a yo un g perso n is nee ded to carr y ph ys ica lly d em and ing wor k,
the req ui red ph ys ica l a ttribut es should be clearl y d escribed ra th er th an statin g an
age limit. Adve rti sement s wi th sta tement s like "C hin ese p refe rred" and "Ma lays
p refer red " a re un acce p tab le. Religion is an un accept able req uir e ment exce pt
in cases w here e mp loyees have to perfor m re ligious func tions as pa rt of th e job
requir e me nt.

H elping retrenched employees to find jobs

Dur ing the las t recess ion, so me compa nies in Singapo re had to re trench wo rker s
to cut bu siness cos ts. With th e coo perat ion of tra de unions and th e Mi nist ry of
Ma np owe r, these em p loye rs helped the ir retrench ed worke rs to find jobs in oth e r
co mp a nies or indu stri es. With sub sid ies from the gove rnm en t, po te ntial empl oyers
we re e nco ur age d to p rov ide the necessa ry trainin g.

A tt racting overseas talents

At a pr ess int e rv iew give n at th e close of the Co mm onwea lth H ea d s of
Gove rnm en t Co nference in Vancouve ,~ Ca nada in 1987, the then Singap ore
Pr im e Mini ste r Lee Ku an Yew noted th e imp orta nce of att rac tin g tal e nted
peo p le to Sin gapo re . Sin ga pore had to compe te w ith deve lope d co untri es like
th e Uni ted States, Ca nad a, a nd Aust ra lia for ta le n ts. On e of th e so luti ons he
offe red was to imp rove the qua lity of life in Sin ga pore, su ch as in creas in g th e
s ta ndar d of liv in g and prov idin g bette r le isur e and edu ca tion faciliti es an d m ore
cultur a l ac tiv ities . 16
Since th en, the Singa pore gove rnm ent has been encour ag ing empl oyers to
recruit ski lled m anp owe r from abroad, includin g Russ ia and Ind ia that have large
numb e rs of e ng inee rs and sc ienti sts. Tm m igra tion rules have bee n re laxe d to a llow
p rofess ional s and sk illed wo rke rs from ot he r countri es to beco m e perma nen t
res id ent s.
At th e M inist ry of Manp owe r, the Intern ationa l Ma np owe r Division at tr acts
fo re ig n m anp ower a nd ove rseas Singa porea ns. It ove rsees a netwo rk o f Co n tac t
Sin ga pore off ices in Bos ton, Chenn a i, Lond on, and Shanghai. These offices
p rom ote Singap ore as a n attr active wo rkplace for sk illed foreigne rs. The overseas
off ices o f th e Econom ic Deve lop ment Boa rd and In tern ational Ent erpri se
Singapo re (form e r Trade Develop ment Board) a lso ass ist in rec ruitin g fore igne rs.
Th e Singapore Inte rn ational Foundati on p lays an ac tive rol e by kee pin g in touch
w ith Singaporea ns living a nd stu dy ing abroad.

Em ploying foreigners
At the M inistr y of Ma np owe,~ th e Foreig n Ma np owe r Ma nage men t Di vision
d ea ls w ith a ll m atters relate d to foreign wo rkers . ft ma nages and protec ts fore ig n
ma np owe ,~ es pecia lly in a reas such as illega l empl oy me nt, acco m modat ion,
em p loy me nt cond itions, and aba nd onm ent. It licenses and sup ervises e mp loy me nt
age ncies . It cond uct s audit s on e mpl oyme nt age ncies and emp loyers of work pass
ho lde rs. [t is respo nsible for issuing work pe rmit s a nd empl oyme nt pas ses to
fore ig ner wo rking in Singapo re.
Part 2 ° Recruitment and Placement

New personalized employment pass

On 1 Jan ua ry 2007, Singa pore' s Minis try of Ma npow e r in troduc ed a new
p erso nali zed e mpl oy me nt pa ss (PEP) to attr act and reta in globa l ta lent. The PEP is
gra nted to empl oy ment pa ss (EP) holders or fore igne rs w h o ha ve grad ua ted from
uni vers ities a nd have wo rk ed in Singapore for a perio d of time. Prev ious ly, the
issue of EP was tied to a specific empl oye r. Any chang e in empl oye r reguir ed a new
app licatio n. If E P holders left the comp any, the ir EP was cancelled and they mu st
leave Singa pore unl ess they found empl oy ment w ith anot her comp any.
In contrast, th e new PEP is not tied to any e mp loye r and is g rant ed on the
strengt h of the EP holder's indi vidu al JT1 erits . The PEP al low s th e holder lo ren, ain
in Singapore for up to six month s in betw een job s to look for anot he r job . Thi s helps
Singapore to retain foreig n ta le nts who wo uld oth erw ise have lo leave th e co un try.
Thi s arrangeme nt is similar to schemes in ot he r p laces su ch as Aus tralia, Ca nada ,
Hong Kong, and th e Unit ed Kingd om .17

Singapore workers in demand abroad

Singapore has tradit ionally been known as a n im po rter of tale nt. In recent years, it
h as beco me a ta lent so ur ce itse lf. Du rin g th e pa s t two yea rs, reg io na l de m and for
Sin ga po re m anag ers ha s go ne u p by about 30 perc ent. Hundr ed s a rc being so ught
in the wea lth mana ge ment indu stry. Headhuntin g co m pa nies g ive three rea sons for
the popul ar ity of Singapo reans: stron g langu age skills, lowe r wage s, a nd d iver se
cross-c ul tura l work expe rience. 18

HR in ACTION
L/ McDonald 's Regular"Non -regular "Workers
Mc Dona ld's is one of the wo rld's largest em ployers wi th its fast-food restaurants in
many co un t ries. In Singapore, it had about 5,000 em ployees. In a tight labo r market,
it dep en de d on a large numb er of "non-regu lar" empl oyees. About 55 percent of its
restaurant crew were students, and the rest we re ret irees and housewives.
. McDo nald 's had to vary it s HR practi ces as these employee gro up s had different
aspiratio ns and needs. For social activities, the older empl oyees wo uld go for
shop ping in Johar Bahru in Malaysia or the neighb oring Indonesian island of Batam.
The young er wo rkers wo uld enjoy disco part ies.These diff erent even ts also enabl ed
one group to cove r th e duti es of the oth er during the activities.
Altho ugh t heir social activities were different, the g roups we re very close at w or k.
Older empl oyees we re assigned th e s9me responsibilitie s as th eir yo un g co lleagu es.
McDo nald's experience had show n that t hey could handle co unt er serv ice equ ally
well. It had disproved the belief that older emp loyees w·ere only suit able fo r
kitchen j obs. McDonald 's found that t hese employ ees had low turn over, and w ere
depend able, punctu al, produ ctive, and dedicated.19

Recruitment in South Korea

In South Korea, large compa nies recruit throu gh mass med ia such as TV, radio,
news papers , maga zines, and comput er netwo rk. Sma ll firm s recru it thro ugh word
of mou th or by loca l ad ver tisements.
Under th e Labor Standa rd Act, em ploye rs cann ot d iscrimin ate by gen der,
nationali ty, religion, or socia l stat us. The Egual Emp loy ment Act gu ara nt ees egua l
op portuni ty and treat me nt of men and wome n from recr uitm ent to retir ement.
The recru itm ent of foreign wo rkers is res tri cted. Empl oyme nt is offe red to
fore igners only in journ alism, techn ology tra nsfer, bu s iness, cap ita l investment,
educ a tion, researc h, and enterta inm ent . Immi gration law d oe s not allow the entr y
of un skilled fore ign worke rs except as tra inee s.20
 8
5 HR Plannin g and Recruiti ng

A bolish re st raint on skilled foreign workers

Since the financial crisis in 1997, Korea has :as~d restraints on foreign direct
investment. Restraints on the entr~ and the hmit on long-term stay of skilled
foreign workers have also been abolished.

Recruitment in Thailand
ln Thailand, there is a shortage of high-l~vel skilled manpower such as engineers
and science graduate s. However, there 1s a surplu s of vocational and technical
school leavers.2 1 Foreign employers must re~lize that th~re is a wide economic gap
betvveen the city of Bangkok and the provmces. Candid ates from rural families
need help to adjust to the lifestyle in the capital.

Recru it ment methods

In Thailand, newspaper advertisement is the most popular recruitment method
for small and medium enterprises. Howeve1~ family-based enterpri ses still
dep end on familial relationship to fill vacancies. Large companies use various
method s such as campus recruitment, walk-in, _informal social and "old boy"
netw orks. For senior positions, they use the service of executive search firms. In
recent years, many companies are using e-recruiting by posting their vacancies
on their websites.22
Many companies inform schools and universities about their vacancies. Some
companies offer attachment jobs to university students during their vacation and
offer them full-time jobs later. Many large local companies and MNCs have good
career ladde rs and fill management positions from within.

Foreign-trained graduates
There is a great demand for foreign-educated Thai graduates. Western companies
favor graduat es from the US. However, some of them realize that there may be a
gap between foreign language ability and actual job performan ce.

Recru it ing T hai workers for overseas jobs

Since 1975, Thailand's Ministry of Labour and Social Welfare, has been encouraging
overseas employment by Thai workers. Every year, tens of thousands young men
leave their villages to work in the Middle East, Singapore, Hong Kong, Taiwan, or
Israel. In 1994, overseas Thai workers contributed 40 billion baht to the national
economy.
Taiwan is now the biggest market with 150,000Thai workers. Singapore has
about 40,000, mostly in the construction industry. Most of them are male, aged 20
to 35, and have primary to secondary education.
Most Thai workers are recruited from the northern provinces. Advertisements
for workers are aired over the radio. Then the recruitment agents travel upcountry
to select the workers. These workers would have been registered with a provincial
labor centre first. The agents interview potential recruits who have to und ergo a
medical check-up.
Some agents brief the Thais about the different cultural habits in host countries.
For example, they tell these villagers who eat heavy, sticky rice that the Taiwanese
take a light breakfast of soy bean juice or porridge.
In recent years, Taiwan has become a favorite destination for Thai workers.
Many Thai villagers used to earn 30,000 to 40,000baht a year. They hope to earn
about 20,000baht in Taiwan, and send home 15,000baht a month.
Many Thai farmers mortgage their land and other assets to pay for their
expenses before leaving for their overseas jobs. When they return to their villages,
they have enough savings to repay their debt and to build a new house and buy
furniture, color TV,refrigerato1~or motorcycle.
 Part 2 ° Recruitment and Placement

Mo st co n trac ts are for one yea r a nd can be re newed. The age nt s arc respo nsible
for the se wo rk e rs until th e ir co n trac ts en d. For examp le, an age nt wou ld have to
step in if worke rs ar e no t pa id or if th ey are repatriated sudde nl y. Ther e a rc more
than 200 priv a te agenc ies reg iste red with th e mini s tr y. Th e mi ni stry also has a
cont ro l function. In 1994, it in creased th e bank g u a ran tee of age ncie s fro m one
milli o n b ah t to five milli o n, to we ed out fly-b y-ni ght age nt s who had cheated
workers.
[n 1992, e mpl oye rs in Israe l beca me in te rested in Tha iland as the y foun d that
ru ra l Thais-who mak e up 60 pe rcent of the populat ion-co u ld produce ver y good
fruit, vege tables, and flowe rs. They started to get a ppro va l to e m plo y Tha i wor kers
for ag ricultur a l coop e ratives. 23

Recruitment in Vietnam
Since the introduction of econo mic refo rms, Viet nam ha s attracted ma ny foreign
in ves tor s. How eve r, recru itm e nt of expa tria te sta ff ma y be diff icult as Vietnam
is con sidered a hard ship p os ting . Companies have to offer att ractive ince ntives
including freque nt tr ips out of Vietn am . Hanoi is less appeal ing to foreig n wo rkers
a s compared to Ho Chi Mi nh City whic h now has a live ly soc ial life. The major
probl ems for ex patriat es are educat ional, medica l, a nd ho usin g faci lities ma ny of
w hi ch a re be low int ern atio na l stand a rd s.
Alth ough ther e is high un empl oyment, recrui ting local staff ca n be di fficult.
Loc al candidate s may not have the req u ired qua lificat io n or ex pe rie nce . In add ition,
loca ls n eed to see k sec urity clearanc e fro m th e Mini str y of the Inte rio r to wo rk for
foreign companies.
Joint venture companies ha ve fewer probl em s hi rin g sta ff than whol ly foreign-
own ed com pani es. Their loca l partner s are u sua lly able to fin d the righ t peop le
through their cont acts. For som e po sitio ns, se ni ority an d age a re more im po rtant
than qu alifica tion s.

Ho Ch,_Minh City in Vietnam now

has a lively social life, making it more
appealing to expatriate staH.

Employment agencies
In the pri vate sector, recruitment dep end s on advertise men ts by em p loymen t
agencies in ne wspa pers. Few employers adv er tise their vaca nci es publicly.
In Han oi and H o Ch i Minh City, there are 40 sta te emp loymen t age ncies and

J
 5 ° HRPlanning and Recruiting

350 private em~loyment agencies. They are the most popular information sour ces
for job informati on and application. Agencies that introduce workers to compani es
are allowed to take a maxnnum of 8 percent of the recruited worker 's income in
the first 12 months. This is to cover their labor training, recruitm ent, and select ion
costs.2•1

Flexibility in recruitment
In the past, foreign companies had to use the recruitment service provided by
official labor agencies. In 2001, the Labor Code vvas introduced. It now allows
foreign compa nies to recruit directly in the labor market.
State-owned companie s are given more flexibility to decide on the numbe r of
employees and positions, except for high-level positions. An employment contract
has been introduce d and has replaced the life-time employment (bie11c/1e) system .
Recrui tment practices depe nd on the type of enterprise. In state-owned
enterpri ses, recruitm ent may not be based on job requirements, but on personal
relationship and external intervention. In private companies, recruit ment
procedures are applied but not consistent. In foreign-owned enterprises,
recrui tment is systematic and based on job demand.
ln recent years, the government has encour aged labor expo rt (xunt klinu /no
duo11g).Every yea r, thousands of workers leave the country to wo rk abroad. In
the 1980s, the popular destinations were the Eastern bloc countries. With the
collapse of the socialist regimes, many have gone to work in Korea, Malays ia,
and Taiwa n.25

CHAPTER SUMMARY
1. Developing HRplans requires three forecasts:
a. one for personnel requirement s
b. one for the supply of outside candidates
\ 2.
c. one for the supp ly of inside candidates
To predict the need for personnel:
a. project the demand for the product or service
b. project the volume of production required to meet these estimates
c. relate HRneeds to these production estimates
3. There are several sources of candidates:
a. internal (promotion from within)
b. externa l (advertising, employment agencies, executive recruiters, college recruiting , Intern et,
referral, and walk-in)
4. In recruitment, it is unlawful to discriminate against any person becaus e of race, colo r, religion, gender,
national origin, or age (unless religion, gender, or origin is a bona fide occupational qualification).
5. Application form- managers use them to obtain background data.
6. Application form data can be used to predict the applicant's future performance.

KEY TERMS
computerized forecast, 105 ratio analysis, 104
HRplanning, 102 recruiting yield pyramid, 108
job posting , 110 scatte r plot, 104
personnel placement chart, 106 succession planni ng, 110
position replacement card, 106 trend analysis, 104
qualifications inventor ies, 106
Part 2 e Recruitmentand Placement

-.

DISCUSS!
1. What are the pros and cons of the five sources of job cand idates?
2· What are the four main types of information that application forms provide?
3· How, specifica lly, do eq ual employment laws app ly to personnel planning and recruiting act iviti es?
4· What are some Inte rn et site s employers can use to find job cand idat es?
S. What are the main activities you wou ld do to recruit fr o m ab road?

•••• •••• •••• •• ••• •• ••• •••••• •• •••••• •••••••••• ••••••

INTERACT!
ACTIVITY 1 Working indi vidu ally or in groups, bring to class several classified and display ad_s from th~ loc~I
newspaper "help wanted" ads. Analyz e th e effective ness of th ese ads using the gui de lin es d iscussed in this
chapte r.

ACTIVITY 2 Wo rkin g indi v idu all y or in groups, visit the loc al gove rnm ent em p loyme nt service agency. Come
back to class and discuss the following questions:
l. What types of jobs are ava ilabl e thr o ug h this age ncy?
2 · To w hat exten t do you think this ag ency wo uld be a good source of professional, technical, and / or managerial
I
app licant s?
3 · What sorts of paperwork are app li cant s required to complete before t heir applications are processed by the
agency?
I
4 · What othe r services d id the agency provide?
5 · What other op in ions did you for m about thi s age ncy?

~CTIVITY 3 Working individually o r in groups, find at least five employment ads either o n the Internet or
in a_lo cal new spape r that sugg est that the company is family-friendly. Discuss what they are doing t o be •
family -fri end ly. 'I

A CTIVITY 4 Work ing indi vidu ally or in groups interview some managers between the ages of 25 and 35 at
a 1oca lb · '
~
usiness who manage empl oyees aged 40 or older. l
1 . Ask the managers t o describ e three or four of their mo st challeng ing experiences managing o lder ~
emp loyees. ~
2. Analyze and co mpare t h e d.1fferent experiences.

•••••••• ... ...... .................... ............... ~a

EXPERIENCEHR! I
The_Nursing Shortage
During the p t f . .
I
patie f as . ew yea rs, private hospitals in Sing apore have been expand ing their ope rat ion s to attract ~
nu nt; rom neighboring co unt ries. Eve ry hospital has been actively recr uitin g nurses. Many are recruiting
rses rom the Philippines and China.
•

Purpose I
The p ur pose of t h·is exerci.se .1s to give yo u expe rien ce creat .ing a recruitment
. program. I
Requ ire d Understanding I
Y
I ou shoul~ be familia r w ith the content s of thi s ch apt er, and w ith the nurse recruitment program of one of t he
ocal ho sp ita ls.
1

J
 5 ° HRPlanning
andRecruiting

How to Set Up the Exercise

Set up groups of four to five students for this exercise.The groups should work separately and shou ld not talk
to one another . Each group should do the following tasks:
1. Based on information available on the hospital's website, create a hard copy ad for the hospital to place in
the local newspaper.
2. Discuss the hospital's current online nurses' ad. How would you improve it?
3. Prepare in outline form a complete nurses' recruiting program for t his hospital, including all recruiting
sources that your group would use.

• • • ••• • • •••••••••••••• •••• •••• •• • •• • •• • • • • • • • • • •• • • •

- ~ Laundry Company

A CONT~NUING CASE IN EVERY CHAPTER...

Getting better app licants
If you ask KK Laundry's Consulting Manager Jen Ko and her father Jak Ko the Founding Manager what the main
problem was in running their business, their answer would be quick and short: hiring good people.
KK is a laundry group with six stores located at various residential areas. Each store has a manager assisted
by a team of cleaners and pressers. Most of these emp loyees have no more than high schoo l education (often
less). However, in a tight market, demand for semi-skilled workers is very competitive . Over a typical weekend,
dozens of "help wanted" ads for these worke rs can be found in newspapers. Most of these people change jobs
frequent ly.
Jen Ko and her father are now faced with the continuing task of recruiting qualified workers out of a pool of
applicants whom they feel are always moving from job to job. Turnover in their stores (as in the stores of their
competitors) often approaches 400 percent. "Don't talk to me about HR planning and trend analysis," says Jen.
"We're having a crisis and I am happy just to be able to find enough applicants to keep the business going: '
To deal with this problem, Jen'sfather asked her the following questions:
1. What can we do to reduce the turnover in our stores?
2 . How can we increase our pool of job applicants so that we do not have to hire almost anyone who
walks in the door? (Your recommendations should include completely worded online and hard copy
advertisements).
Part 2 e Recruitment and Placement

-.

THEHR§ coRE CARD

-•
Strategy and ResultsHotel-International
New rec ruitment process
--
Hotel lnternational 's competitive strategy is, "To use superi or guest servic e to inc rease th e lengt h of stay and
~
return rate of guests , and thus to increase revenu e and profit:' HR Dir ecto r Li must now formulate policies
and activities that support thi s competitive str ategy, by enco urag ing the required employee behaviors and
competencies.
As an experienced prof essional , HR Direct o r Li was awa re of th e import ance of effect ive recru it ment. If
-I
Hotel Int ernational did not get enough applicants, it could not be selective abou t w hom to hir e. And, if the
hotel could not be selective about whom to hire , it wo uld not get th e customer-oriented emp loyees that
I
t h e hotel needed to provide good guest services. Li was therefore di sappointed to di scover t hat the hote l
was not payin g atte ntion to recruitment. Indi vid ual hot el manag ers would put up some "help wa nt ed" ads I
-I
when they had positions to fill, and no one had any measurabl e id ea of ho w many applicants th ese ads we re
attracting or w hich recru it ing method was the best . Li knew t hat it was time for her to pay attention to the
hotel 's recruitment activities.
Now Director Li and her team mu st create a recr uiting program that help s to pr oduce th ese employee
behaviors. They reviewe d the hotel' s current recruitment practices. What they found , basically, was that the
~ecruitm ent function was totally unmanaged . The previous HR dire cto r had simpl y allowed each hotel to do I
it s ow n recruitm ent . When j obs becam e availabl e, the hotel manage rs, not being HR professionals, would ju st
place "help wanted" ads in their lo cal papers. There was no guidance from th e hot el's headq uart ers abo ut
w hat kind of app licant s the hotel pr eferred, what media and alt ernati ve sources of recruit s, and , of course no
I
measurement of the eff ective ness of the recruitm ent process.

th
The hote l group totally ignored th e recruitme nt metrics that other companies used effec ti vely, such as
~ numb er of qualified app licant s per position, percentage of j obs filled from within, the offer-to-acceptance
rat io, acceptance by recruiting source, turn ove r by recruiting source, and select ion test results by recrui t ing
'I
source.

d To achi eve it s strat egic goa ls, Hote l Interna t ional had to depend on the quality of the people that it attracted
I
:n
th
en t o select the best. "W hat we want are empl oyees who will put our guests first, who w ill use initiative
t~ s:e th at our guests are sat isfi ed, and w ho w ill w ork tir elessly to provide our guest s with services that exceed
I
eir expectat ions;' said Director Li as she began to design a new recruit ment process. I
Questions
1. Given....the hot e I's stated emp Ioyee preferences, what recruit
w hyr
· ·ing sources wo u Id you suggest they use, and I
2
3 · ~hat wo uld a Hot el Int ernat ional " help wanted" ad look lik e?
I
• ow wo uld yo u sugg est they measure the effect iveness of their recruiting effo rts?
I
~
I
I
I
!
 S HRPlanningandRecru
iting

..., -- - ----~ ---- -- ·-

r ~
'
5 . Strategic
pe rformance
metrics
(Arewe achieving
1:

11
Rankingsin
industryservice
satisfaction
surveys
Profitmargins
and total annual
profits
Percent share of
market l Annual revenues
(i
'
'

our strategicgoals?)
_J ...
--
_J lo.. _J !lo..
--- ---
_J ...-- _JI

I'!\ I'!\
r
1' r
I
-.,. r
-- I l 1' "I'

' 1, ' '

4. Strategica lly Guest service Numberof written guest Variouscustomer and
relevant customer satisfactionindex compliments and/or Hotel Internacional
complaintsper year 1, outcome metrics,
and organizational
outcomes metrics including:frequencyof
(How can we measure guests' returns;average
whether our customer length of stay;and guest
serviceisactually expendituresper guest
_J ~ 1
improvingand having 1, 1, I r>. I\ per stay
the desiredeffects?)
_J "- _)

1' 1'
r
I '
I r
--- I
3 . Strategically Employee ' Employeemorale Variousemployee ' Employee Percentage of
,,
releva nt turnover service-oriented service employeesscoring
emerge nt behavior metrics, commitment and at lease90% on
employee including:percent engagement Hotel Internacional
capabi lities a nd calls answeredwith index core values quiz
·'
I'
behaviors
metrics "'-
1, -
.. -- Ir,.
~
requiredgreeting
speed of check
.... .
1,
.A "'- - .,, _)

(What skillsand in/out; percent room

actionsmust cleaning infractions;
our employees and percent guests
demonstrateif our receivingHotel
companyis to achieve International required
itsstrategic
goals?) greeting on arrival
I,._ I
\. -~ _)
_)

I -
2. Strate gic HR Cha pter 4, Job Chapter 5, Chap ter 6, Chapter 7,
activities metrics Analysis Recruiting Testing Interviewing
(What HRfunction Percentageof Numberof Percentage of Percentage of
should wefocus on, employees with applicants employeeshired applicants receiving
and how should updated job per recruiting based on validated structured
we measureits descriptions source; number employment rest interview
efficiencyand of qualified
effectiveness?) applicants/

r
-
positions

'
,,
1. Hote l Internatio nal CreateService-Oriented EmbedCoreValues EncouragePersonal Emphasize
BasicStrategicThemes Workforce EmployeeGrowthand Partnership and
(What basicthemes must Learning Senseof Ownership
we in HRpursue to help
HotelInternationalachieve
its strategicgoals?)

Figure 5.15
HR Scorecard for Hotel International
Note: An abbreviated example showing selected HRpractices and outcomes aimed at implementing the compet itive strategy. "To use superior
guest services co differentiate the Hotel Internacional properties and thus increase the length of stays and the return race of guests, and chus boost
revenues and profitability and help the firm expand geographically:·
 Part 2 e Recruitmentand Placement

Endnotes
1. Burack, E. H. and Smith, R.D. 1997. Personnel 11. Prijadi, Ruslan and Riani Rachmawati. 2002.
Management: A Human Resource Systems Approach, " Indonesia: ' In Handbook of Human Resource
l 34-35. St Paul, MN: West Publishing Co. Copyright Managemen t Policies and Practices in Asia -Pacific
1997
. by West Publishing Co. All rights reserved. Economies, vol. 1, ed. Michael Zanko, 260 - 93.
Reprinted by permission.
Chelte nh am: Edward Elgar.
2
· Sreeniv~san, Ven. 2007. "SIA Grooming Next 12. Ofreneo, Rene E. 2003 . "Philippines. " In Handbook
Generation., Business Times 31 December of Human Resource Management Policies and
Tan Ch ' ·
s· ' wee Huat. 2007. Employment Relations in Practices in Asia-Pacific Economies, vol. 2,
rngapore, 5th ed. Singapore: Pearson Prent ice Hall. eds Michael Zanko and Matt Ngui, 390-445.
3 Chelt enham : Edward Elgar.
· :areham, John. 198 1. Secrets of a Corporate
eadhunter. New York: Playboy Press, 213-25. 13. Campbell , Donald J. and Campbell, Kathleen
4 M . 1997. "Employee Turnover in Singaporean
· ~eung, James. 1996. "Ind ian Success Sto ry-Bra in s Firms: Some Initi al Findings :' Department of
ue! Technology Boom Town in Bangalore:' Asian Organisational Behaviour, Faculty of Business
Business, June, 28-34.
Admin ist ration, National Un ive rsity of Singapore .

s. ~hai, B:n liang and Liu, Linshan 2002. "Peop le's 14. Chew, Irene and Goh, Mark . 1997. "Some Future
Hepublic of China:' In Zanko, M. (2002) (ed) The Directions of Human Resource Practices in Singapore.·
a~:book of Human Resource Management Policie s Career Development International 2, no. 5: 238.
~n ractices in Asia-Pacific Economies, vo l. 1., ed.
· Zanko, 51 7-74. Cheltenham, UK: Edward Elgar. 15. Low, Linda. 2003. "Singapore :' In Handbook of
Human Resou rce Management Policies and Practices
6. Zhu, Cherrie. 2006 . "Human Resource in Asia-Pacific Economies, vo l. 2, eds Micha el Zanko
~~agement in China:' In, and, Perspectives of and Matt Ngui, 498 -5 38. Cheltenham : Edward Elgar.
eds : 1::~source Ma~agem~nt in the Asia Pacific,
Jane Coffey'Nank erv is, Sam1r R. ChatterJ·ee and
12 40 ' 16 Wan, David, Wyatt, Thom as,Tseng, Anthony T.,and
Austr a 1•1a. ' - • Syd ney: Pea rson Education Chia, Ho Beng. 1989. "Human Resource Management
in Singapore : An Overv iew." Asia Pacific Journal of
7. McElli ster Robe t 199 " Human Resource Management, 27, no . 2: 71- 87.
Ret . ' r · 8. Recruitment and
Int ent ,~n of Manageria l Staff in China" In 17. Tan, Chwee Huat. 2007. Employment Relations in
ernat,ona l Ma . . ·
Issues ed J S nagement m China: Cross-cultural Singapo re, 5th ed. Singapore: Pearso n Prentice Hall.
' · an el mer, 98-114. London : Rou tl edge .
8 · JETRO. 2002 "S . . 18. Lin, Keith . 2007. "Singapore Workers in Big Demand
Resources f~r S~un_ng Highly Qua lified Human for Key Job s Ab road:' Straits Times, 9 April.
External Trad Es 1~ A~EC Economies:' Japan
e O rgan1sat1on,Tokyo. 19. Ang, Joanne. 1996. "Best Employment Practices:
9. Chong, Vin ce 2007 "H Lessons for Singapore Companies:' Productivity
in Scrambl e f. ·. K to Open Door Wid er Digest , March , 2-7.
Decemb er o r Fore ign Talent." Straits Times 12
20. Ko, Sangwon . 2002. "Repub lic of Korea:' In Handbook
1O. Ng, Sek Hon . of Human Resource Management Policies and
Kong :' In Ha;d~~~ Wrig ht , Robert. 2002. "Hon g Practices in Asia-Pacific Economi es, vol. 1, ed. Michael
0
Policies and Pro t · k '. Hun:1anResource Management Zanko, 397- 400. Cheltenh am : Edward Elgar.
ed. Micha el Za ~(e s rn Asia -Pacifi c Econo m ies, vo l. 1,
Elgar. o, 167-259. Che ltenham : Edward

- -------- -------

21. Gullaprawit, Chirapun. 2002. "Thailand:' In Handbook
of Human ResourceManagementPoliciesand
Practicesin Asia-PacificEconomies,vol. 1, ed. Michael
Zanko, 575-628. Cheltenham: Edward Elgar.
22. Siengthai, Sunuta, Bechter, Clemens, and Singleton,
Helen. 2005. "Human Resource Management
in Thailand" In Perspectives
on Human Resource
Management in the Asia Pacific,eds. Alan R
Nankervis, Samir Chatterjee, and Jane Coffey,
201-30. Sydney: Pearson Education, Australia.
23. Lee, Siew Hua. 1995. "Exporting Workers-a
Booming Business."StraitsTimes,19 March.
• • • • •• •••• •• •• •• •••••••••• •• •• • • • •• • • ••• • • • • • • •
5 e HRPlanning
andRecruiting
24. Pham, Quang Thao, Nguyen Huu Tu, and Nguyen
Xuan Nguyen. 2003. "Vietnam:' In Handbook of
Human ResourceManagement Policiesand Practices
in Asia-PacificEconomies,vol. 2, eds Michael Zanko
and Matt Ngui, 539-595. Cheltenham: Edward Elgar.
25. Quang, Truong. 2006. "Human Resource
Management in Vietnam" In Perspectivesof Human
ResourceManagement in the Asia Pacific.eds. Alan R
Nankervis, Samir Chatterjee, and Jane Coffey,
231-52. Sydney: Pearson Education, Australia.
 Learning Obiectives
After studying this chapte r, you should be
able to:

1. Explain wh at is meant by reliability and

validity.
2. Explain how you validate a test.
3. Explain test ing guide lines.
4 . Discuss some of th e eth ical and legal issues
in testing .
5 . List some tests to be used for emp loyee
selection, and how to use them.
6. Explain the key po ints in conduc ting
background check .
 part
Chapter6
Employee Testing
and Selection -....
·
3
(D
A
s she was deciding what to do next,
HR Director Li of Hotel International
Group knew that emp loyee selection was
Li found consistent, significant relationships
between test performance and a range of
emp loyee competencies and behaviors
....
:l
C
very important in her plans. The hotel only such as speed of check-in / out , emp loyee
:::,
had an inform al screening process. Local
hotel managers received application forms,
turnover, and percentage of calls answered
w ith the required greeting . Clearly, she had a.
interviewed applicants, checked their refer-
ences, and decided who to hire. However, a
pilot project using an emp loyment test for
found someth ing important. She knew that
employee competenc ies and behaviors like
these wou ld im prove guest service at the
-
-c
0
0
service people at one of the local hotels in the hotels. She therefore had to decide w hat
group had produced some surprising results. selection procedures would be best. (D
3
(D
....
:::,
 Part 2 ° Recruitment and Placement

EmployeeTestingAnd Selection
Th e pr ev iou s ch apt e r focu se d on th e m et hod s th at m anage rs u se to attract
appli cant s. Thi s ch apt e r di scu sses empl oy ee test ing a nd se lect ion. Th e main
to pic s ar e:
u Se lectio n Pro cess
u Tes tin g Techniqu es
u Re fe ren ce Chec ks
u Ethic a l a nd leg al issues in test ing
u Ty pe o f tes ts and wo rk sa mpl es.

Why Careful SelectionIs Important

Se lec tin g th e right empl oyees is imp o rtan t fo r thr ee reaso ns, as show n in
Figure 6.1.

Figure6.1
WhyIt is Importantto
Selectthe RightEmployees
Performance LegalObligations
Yourown performance Therearelegarimplications
dependson your if thecompanyisnegligent
subordinates.Employees with in the hiringprocess
the rightskillsandattitudes
willdo a goodjob foryou
andthe company .

Negligent hiring ---- Protection against Negligent Hiring

Hiring wor kers with
question able backgrounds
Without prop er safeguards.
6
Explainwhy it is important to select
the right applicant.
6 Explainhow a company can protect
itself against negligent hiring.
Th ere are som e s tep s th a t e mpl oye rs can take to p ro tec t aga ins t ne gl ige nt hirin g
claim s. Th ese includ e the fo llow ing: 1
u Get releva nt informati on about th e a ppli can t and ve rify all d oc um ents.
o Ch eck all in for mat ion sup p lied by applic ants and follow up o n un ex plained
ga ps in e mpl oy men t.
u Kee p d eta iled reco rd s and in form ation yo u have about the ap pli cant s.
o Rejec t appli cant s wh o make false s tatemen ts of imp orta n t facts o r w ho have
conv ictio n recor d s for offe nce s dir ec tly related to th e jo b.
o Balance th e appli can t's pri vacy right s w ith oth ers' "nee d to kn ow, " especia lly
w hen yo u di scove r d am ag ing inform ation .
u Take di sciplin ary action if ne cessar y.

BasicTestingConcepts
Effec tive se lection d ep end s o n the tes tin g concept s of reliabili ty and vali d ity.

Reliabilit y ------
The co nsistency of scores
o bta ined by t he sam e
person when retes ted wit h
t he ident ica l tests or with
a lte rn at ive form s of th e
sa me tes t.
Reliability
Rel iability refers to th e consistency of the test. For exa mpl e, if a pe rso n score d 90
ma rks on an in te llige nce tes t on one d ay and sco red 130 on th e nex t d ay, the test
was not reliab le.
There are seve ral ways to check reliabili ty, su ch as : retest est im ate and internal
com pa riso n est im ate.
 6 0
Employee Testing and Select ion

Retest estimate
In a retest est ima te, yo u can admini ster th e same tes t to the sa me people a t two
d ifferent po ints in time, compar ing their tes t scores at time 2 w ith their scores at
time 1.

Internal comparison estimate

Inte rn a l compa riso n es timate tests for interna l consiste ncy. For example,
you have te n items on a test of voca tional inte res ts. You be lieve that these
ite ms meas ur e the person's interest in wo rking out doors. You administe r
the test and then stat istically ana lyze the degree to w hich responses
to these ten items vary toget her. This wo uld prov ide a measure of the inte rnal
re liab ility of the test. Interna l consistency is one reaso n ,vhy there are app arent ly
repet itive ques tions in some tes t questionn aires .

Validity
Reliab ility only te lls yo u that the test is meas uri ng somet hin g consisten tly.
Validity tells yo u w hethe r the test is meas urin g w hat it is su ppose d to meas u re.
For exa m p le, a ty pi ng test clea rly shows w hat the perso n is requ ired to do on the
job. At the ot her extreme, so me tests are not related to the job. One example is
p roject ive pe rso na lity tes t.

Validity tells you whether the test is

"First one who gets the Rag wins the job!' measuringwhat it is supposedto measure.

Quick Quiz
In the co ntext of selectio n tests,
explain w hat is meant by:
0 Reliabil ity of the test
0 Validity of the test.

Test validity ----~

The accu racy with wh ich
a rest measures what it is
supposed to measu re.
Thu s, in the Themat ic Appe rcept ion Test show n in Figure 6.2, the psychologist
asks peop le to exp la in how they interpr et an ambig uous pictur e. The psychologist Criterion validity
uses tha t int erpr e tation to d raw conclu sions about the perso n's personal ity and A typ e of validity based
behav io r. In such tests, it is di fficult to prove that the tests are meas urin g what they on showing that scores on
the test (p redictors) are
a re su ppose d to meas ur e-th at they are valid .
related to jo b per formance
Test val idit y answe rs the qu estion: "Does th is test meas ure w hat it is sup posed (criterion).
to meas ure?"
In selection tests, validity refers to the evidence that the test is job related- Content validity
in other wo rds, tha t perfo rm ance on the test is a valid pred ictor of su bseq uent A test t hat is content valid
pe rform a nce on th e job. A se lection test mu st be va lid otherw ise there is no is one that co nta ins a fair
reaso n to u se it for scree nin g appl icants. There are two ma in type s of va lidit y: samp le of th e tasks and skills
ac tua lly needed for the job.
criterion validity and co ntent validity (see Figure 6.3).
 Part 2 e Recruitment and Placement

Figure 6.2
A sample picturecard from Thematic
ApperceptionTest.Hovi do you
interpret this picture7
S011rc~· Reprinted by perrrn ss,on of
the publ ishers of I tern y A. ,\\u , ,ay.
THEMAflC APPERC(P1 ION fESl.
Plate 12F. Cambridge , ,\ \.1w I 1.irva rd
Un iversity Press, 19ft'3.

Figure 6.3
Criterion Validity and Content Validity
Criterion Validity
o Means that those who do wellon the
test willalso do wellon the job.
o The test has validitybecausepeople
with higher test scoresperform
better on the job.
Content Validity
Testshould be a fair sampleof the
content of the job.
Theprocedureis to identifythatthe
tasksarerelatedto performance ,
then selecta sample of thosetasks to
be tested.

How To ValidateA Test

What m akes a tes t like the G radu ate Record Examinati on (G RE) usef ul for college
admis s io n director s ? What mak es a mechanical comprehension test usefu l for a
m anage r trying to hir e an eng ineer?
Th e an swe r to bot h question s is that peo ple's sco res on these tests predic t how
th ey perform. Thu s, student s w ith high GRE sco res also do better in g raduate schoo l.
Applicant s w h o score hi gh on the mec han ical tes ts pe rform better as eng ineers. '
For any se lecti on tes t to be use ful, yo u sho uld va lid ate that test sco res relate
in a predictable way to performance on the job. Thi s va lidati on proce ss is usually
d o ne by an indu stri al psycho logist. The HR de par tmen t coordina tes the effort.
A line m a nager's ro le is to describe the job and its requir ements so that the
human requirements of the job and its per form ance s tandards arc clear to the
psyc h o log is t.
The validation process consists of five s teps (see Figure 6.4).

Analyzejob
Choose test s -+ Administertests Relatetest scores
andcriteria
Cross-validate
and revalidate
Figure 6.4
TheValidation Process

Step I : Analyze the Job

An a lyze the job and w rite job de script ions and job specificat ions . Here, yo u need
to spec ify the hum an traits and skills that a re neede d for the job . For exa mpl e,
m ust an a ppli ca nt be a good talker? Is pro gram min g requ ired? Mu st the person
 6 ° EmployeeTestingand Selection

asse mble small components? These requirements become the "pred ictors." These
are s kills that predict success on the job.
You mu st also define what you mean by "success on the job." The standards
of success are "criteria." You may focus on production-related criteria (quantity,
qualit y, and so on), personnel data (absenteeism, length of service, and so on ), or
jud gm ent s of worker performance (by persons like sup erv isors). For an assembler' s
job, yo ur predictors may includ e manual dext erity and patience. Criter ia that
you hop e to predict with you r test may include quantity produced per hour and
numb er of rejects produc ed per hour.

St e p 2 : Choose the Tests

Ch oose the tests that you think will measure attrib ut es (predictors) that are
imp ortant for job success. Employers usu ally ba se this choice on exper ience ,
pre vious research, and "best guesses." They do not start w ith just one test.
Instead, they choose severa l tests and combine them into a "test batter y." The
tes t battery a ims to measure severa l possible predictor s, such as aggress ivene ss,
extroversion, and numerica l ability.
What tests are available and whe re do you get them? Given the ethical issue s
invo lved, the best advice is to use a professional, such as an indu st rial psychol ogist.
However, many cons ult ancy firms publish and distribute emp loyment tests. Some
are available to any purchaser, but others are available only to qualified bu yers
(such as psychologists and counselors).
For examp le, Wonderlic Personnel Test Inc publishes a we ll-known inte llectu al
capacity test, and other tests such as techn ical skills tests, aptit ude test batteries,
intere st inv entorie s, and reliability inventories .
Figure 6.5 shov,,s several ,,vebsi tes that provide inform ation about tests or
testing programs.

o www .hr -guide .com/da ro/G371.hrm

Prov ides gene ral informa tion and sources for all types of em ployment tests.
o htrp:/lburos .unl .edu/b uros/jsp/ searchj sp
Provides technical info rmation on all types of employment and nonem ployment
tests.
o www.e ts.org/testcoll/i ndex.html
Prov id es information on ove r 20,000 tests.
0 www.kaplon.com/
Infor mati o n fro m Kaplan test preparat ion on how various admissio ns tests wo rk. Figure 6.5
o www. ossessmen ts.biz/defoul r.asp?source=GW-emptest Examplesof Web Sites Offering
One of many firms offer ing employment tests. Information on Testsand Test
Programs

Step 3 : Administer the Test

Administer the selected tests to employees. You have two choices here. One option
is to adm inister the tests to employees presently on the job. You then compare their
test scores with their current p erforma nce. This is concurrent validation. Its main
advantage is that data on performance are readily available. The disadvantage is
that current emplo yees may not be representative of new applicants (who of course
are really the ones for whom you are interested in developing a screenin g test).
Current employees ha ve already had on-the -job training and have been screened
by yo ur existing selection techniques.
Predictive vnlidntionis the second and more dependab le way to validate a test.
Here you administer the test to app licants before they are hired. Then hire these
 Part 2 ° Recruitment
Expectan cy chart -- ~ develop an exp ectanc y chart. Thi s pre se nts the relatio nship belwcen tes t score s and
A gr~ph show ing the
relationship betwe en test
scores and job performance
for a group of people
Figure6.6
ExpectancyChart
Note: Th is exp
the relation b ecta ncy char t shows
h etween scores made
on t e I\J\1nne , ot a 'Paper fo rm
Boahrdand rated success of junior
d ra spersons.
Example : Those who sco re between
37_and 44 have a 55% chance of
bein_grated ab ove ave rage and those
scorin g bet ween 57 and 64 h
97% c han ce. ave a
and Placement
ap plicant s us ing on ly ex istin g selection technique s, not the resul ts of Lhe ne w tests
you are deve loping. Afte r they ha ve been on the job for so me time, mea sur e their
performanc e and compare it to their earlier tes t sco res . You can the n determin e
wh ether you cou ld have used th eir per for mance on the test to pr edic t their
subsequ ent job performance.
In the case of an assemb ler' s job, the ide al s ituation is to adm inisle 1~ say, the
Test of Mechanical Comprehension to a ll appl icant s. Then igno re th e tes t results
and hire assembl ers as yo u usually do . Perhap s six mo nth s later, measure yo ur new
assemb lers' performance (quantity produ ced per hour, numb er of rejects per hour)
and compare thi s performance to the ir Mechan ical Com p rehe ns ion tes t scores
(as in step 4)
Step 4: Re late Your Test Score s and Criteria
Deter min e if there is a stro ng relation ship be tw een score s (the pred ictor) and
performance (the criterion). The usual way to do thi s is to det e rmin e the s ta tistical
relationship betw een sco res on the tes t and job pe rform ance throu gh "co rrela tion
ana lys is" which shows th e d eg ree of stati stical relations hip.
If ther e is correlat ion betwee n the test scores and job pe rfor mance, yo u can
job p erformance gra phicall y. To do thi s, s plit the empl oyees int o, say, five groups
according to tes t sco res, w ith tho se scori ng th e highe st fifth on the tes t, the second
highe st fifth, and so on. Th en compute the percenta ge of high job pe rfor mers in
ea ch of these test score gro u ps and pre se nt th e data in an expectancy cha rt like that
in Figure 6.6.
(Highest 20%) 57 -64 i~---------------- --~-- ____ 97
84
(Next Highest 20 %) 51-56
- ----
(Middle 20 %) 45-50 71
(Next Lowest 20%) 37-44 _____ , ____ • ____ _. 55
1
(Lowest20%) 11-3 6 --~-- 29
0 20 40 60 80 100
Chancesina hundredof beingrateda
"highperformer
"; and%of "highperformer
s"
foundineachtestscoregroup
This show s the likelihood th at empl oyees w ho sco re in eac h of these five test
sco re gro up s w ill be high pe rformer s. In this case, someone sco rin g in the top fifth
of the test h as a 97 percent chance of being rated a high er perfo rm er, wh ile one in
the lowe st fifth ha s on ly a 29 p ercent change of being rated a h igh p er forme r.
 6 ° Employee Testing and Selection

Step 5: Cro ss-Validate and Revalidate

Befo re puttin g th e test in to use, yo u m ay wa nt to check i t by cross-va lid atin g, by
aga in pe rform i ng steps 3 and 4 on a new sampl e of empl oyees. A t a minimum , an
expert should rev alid ate th e test periodi call y.
Th e p ro cedur e that yo u ma y use to d em onstra te cont ent v alidi ty diff er s
fr o m th at used to de m onstra te cri te ri on va lidit y (as d escrib ed in step s 1 to 5).
Co n te nt va lidit y tends to em phasize jud gm ent . H ere, yo u fir st d o a care ful
job anal ys is to id entif y th e wo rk behav ior s requir ed. Th en co mbine seve ral
sampl es o f th ose behavi ors in to a test. A ty pin g and com p u te r skill s test fo r a
cl erk wo ul d be an exa mpl e. Th e fact th at the test is a compr ehensi ve sampl e
of act ual, observa bl e, on- the-job beha v iors i s w hat g i ves th e test it s co nt ent
va lid i ty. C ri ter i on va lidit y is determin ed th ro ugh the five -step p ro cedur e
p rev i ou sl y d escri be d . Figure 6.7 summa r i zes imp or ta nt test in g guid elin es
su ch as " use tests as suppl em ent s."

1. Use tests as supplements . Don't make tests your only selection tool; use them to sup plement
other too ls like interviews and background checks.
2. Validate the tests. It is best to validate them in your own organizatio n. However, th e fact that
the same tests have proven valid in similar organizations-cal led validity generalization - is
usually adequate.
3. Monitor your testing / selection program . Ask questions such as, "What proportions of
min ority and non minority applicants are rej ected at each stage of the hiring process?"and
"Why am I using this test-w hat does it mean in terms of actual behavior on th e job?"
4. Keep accurat e records. Record why you rejected each applicant. A general not e such as
"not sufficiently well qualified" is not enough . Your reasons for rejecting the person may be
subj ect to validation at a later date.
5. Use a certified psychologi st. Develop ing, validating, and using selection standards
(including tests) generally require a qualified psychologist. Most states require persons
w ho offer psychological services to the public to be certified or licensed. A Ph.D.degree
(the bachelor's degree is never sufficient) is usually one qualification. Potential consultants
should provide evidence of similar work and experience in test validation, and dem onstrate
familiarity with federal and state equal rights laws and regulations.
6. Manage test conditions. Administer tests in areasthat are reasonably private, qu iet,
we ll-lighted, and ventilated, and make sure all app licants take the tests unde r th e same test
con ditions. Once comp leted, keep test results confident ial. Give them only to indiv iduals
w ith a legitim ate need for the information and the ability to understand and interpret the
scores (including the applicant).Train your supervisors regarding test results confid entiality.
7. Revalidate periodically . Employers'needs and applicants' aptitudes change over time. You
should have your testing program revalidated periodically. Figure 6.7
Testing Program Guidelines

TypesOf Tests
Th ere arc m any ty pes of tests. Th e three main ty pes m easure the follow in g abi l iti es2
(see Figure 6.8):

Tests of Mental Abilities

Th ese tests in cl ude those that measur e general reasonin g abili ty (in tell igence) and
tests of specifi c m ental abili ties li ke memory and in d uctiv e reasoning. Inte lli gence
(IQ) tests are tests of general intell ectu al abi l ities. They m easure abili ties such as
mem ory, vocab ul ary, verbal flu ency, and nu meri cal abili ty.
 Part 2 ° Recru itment and Placement
Figur e 6.8
Types of Tests
Ambiguous stimulus like an ink
blot or clouded picture may be
used to measure basic aspects of
an applicant's personality, such as
introvers ion, stability, and motivation.
Mentalor cognitive
abilities
t
Physical or motor
abilities
L-
,:-- -+ Personalityand
interests
There are tes ts that measure spe cific mental abil ities, s u ch as in ducti ve a nd
deductive reaso nin g, verbal compre hension, me mor y, a nd n ume ri ca l a bi lity. T hese
tests are somet ime s known as occupational skills and a ptitud e tes ts . T h e y meas ur e
the applicant' s aptitude for the job or occupation.
Tests of Physical Abil ities
Som e tests mea su re the app licant's ph ys ical ab ilities , s u ch a s fin ge r dexterity,
speed of arm move me nt, and react ion time . There a rc test s that m ea s ur e
phy sical ab ilities such as strengt h, body coordinat ion, and st amin a . For exa mpl e,
lifeguard s mu st be tested on the ir swi mmin g and lifesav in g s ki lls before th ey are
employ ed.
Measuring Personality and Interes t s
Peop le's mental and ph ysical abiliti es arc se ldo m e no ugh to ex pl a in the ir job
performance . Other factors, like mo tivation and interper so n a l s kill s, arc a lso
important. Employer s use personality and intere st invent o ries to mea s ur e and
predict suc h abilities.
Personality tests measure the ba sic a spects o f an app lica nt 's
personality, such as introver sion, stab ility, a nd mo tivation. Man y of
these tests are projective. The psyc holog is t pre se n ts an am bi g u o us
stimulu s (like an ink blot or clouded pic ture) to th e pe rso n . Th e
psychologist then asks the perso n to interpr e t or reac t to it . Sinc e th e
pictur es are ambig uous, the pe rson' s int e rpr e tat io n mu s t come from
w ithin-b e projected. Applic a nts supposed ly proj ec t into th e p ict ur e
thei r own emotional attitud es abo u t life. Exa mples of per so nal ity
tests (more prop erly called personality invento ries) in clude the
Themat ic Appercept ion Tes t. Persona lity tests ,na y be useful for
help ing employer s to pred ict w hich candidate s wi ll s uc ceed on
the job. However, any valida tion stu dy must be carried out ve ry
carefully.
Interest Inventories
Intere st inventori es compar e your inter ests w ith tho se of peop le
in va rious occ upation s. These inven tories hav e many u ses. O ne exa m ple is
career p lann ing, becau se peop le are likely do be tte r in jobs that in vo lve ac ti vit ies
in whic h they are inter este d. These tests can also be us ef ul a s select ion tools.
Clear ly, if yo u can select people who se intere sts are the same as th ose who are
s uccess ful in the same occupation, it is mor e likel y th a t the appl ica nt s wi ll b e
success fu I.
 6 a EmployeeTesting and Selection

HR in ACTION
Person ality Tests, Job-Fitti ng,
a nd Job- Hop pi ng

In 1996.the Singapore National Employers Federation (SNEF ) center process.adding a new dimension to·job selection
decided to give students free personality tests so that they
could find out what jobs were suitable for them. The three-
hour three-part test gauged a person's inclination. jo b
skills, ability in thinking. problem-solving. and organizing.
Resp·onses to specific work situations were also captu~ d in
an audio segment of the test. Students would each get a
report on their inclination and a list of jobs most suited· to
them. SNEFencouraged recruiters to use personality tests. It
believed that young employeesjob-hopp~d because they
did not know what jo bs they liked or could perform best.3 •
Shortly after the announcement was made. the
President of the Singapo re Association for Counseling
caut ioned against the use of personality tests .to match
peop le to jobs. It is dangerous to suggest that there is
one rig ht j ob for everyone or that a person's personality
can on ly fit one jo b. or wo rse, that people need a certain
personality for a part icular j ob.4
In. response to these comments; SNEF clarified that
their personality tests were not used to match people
to jobs. Rather, SNEF had adopted 9 job simulation
app roach that had been borrowed from the assessment
and development. Using clear. consistent performance-
relevant criteria, simulations introduced a structured and
systemic evaluation procedure. Participants have the ·
chance to demonstrate their skills and to develop a clear
understanding of impo rtant job activities. This realistic
jo b preview helps to match participant expectations and
organizational needs.s ·
. In ·response to the SNEFannouncement, the Singapore
Psychological Society also commented on the use of
personality tests. In its view. the suggestion that personality
tests can solve the problem of job-hopping is too simplistic.
Job-hoppi'ng· is more complex than the assumption that
it has to do with personality and job fit. People job -hop
for many reasons. such as difficulty in getting along with
colleagues.unequal distribution of wo rkload. long traveling
time to and from vyork. low salary, unchallenging job,
better employment offers elsewhere, and so on. On jobs
and personality types,it hascomme nted that all personality
types are needed in each profession to bring about. a
difference for variety, creativity, and synergy ·to generate
new ideas.6 • •

Achievement Tests
Ac hi eve m ent tests m easur e w hat a person has learn t. M ost of th e tests yo u tak e
i n schoo l are achi eve m ent tests. T hey m easur e yo u r "job k now ledge" in areas
l ik e eco nom ics, m ark etin g, or personn el. Ac hieveme nt tests are also used in
empl oy m ent screenin g. T here are va ri ous tests fo r a w i de range of occu pa ti on. In
additi on to jo b kn ow ledge, achi eveme nt tests m easur e the app l icant 's abili ti es; a
ty p ing test is one exampl e.

Work Sample
Work sam ple is anot her form of test. I n the wo rk sam plin g techniqu e, severa l tasks
related to the j ob are cho sen and app l icants are tested on each. A n obser ver reco rds
on a check list how we ll th e app li cants perfor m.
Th ere are several adva nt ages:
1:.1 Th e techn ique m easures actual on-t he-j ob tasks.
u It is hard er for app l icants to fak e answ ers.
v Wo rk samp les are rel ated to the j ob.
u It i s fa i r to all appli cants.
o Th ese tests ha ve bett er v al idi ty tha n most other tests in pr ed icti ng
perfo rm ance.
Part 2 e Recruitm ent and Placement

ManagementAssessmentCenter
A manag ement assessment center is a two- to three -day simu lat ion exe rcise in wh ich
about 10 cand idates perform reaJistic mana geme nt tasks (like making pre sentations )
under the observation of experts who apprai se ea d1 candidate' s leade rs h ip potential.
The center itself may be a plain conference room. It may be a s pec ia l room with a
one-way mirror to facilitate observation. Typical s imu lated exerc ises include:
6 Tizein-basket exerdse. Candidat es are g iven reports, mem os, note s of incoming
phone calls, letters, and other materials collecte d in the ac tu al or co mputeri zed
in-basket of the simulated job they are to take over . Th e cand idate mu st take
action on each item. Trained evaluat ors then review the cand ida te' s actio n.
o Leaderless group discussion. Train ers give a leaderle ss gro u p a d iscussion
questio n and tell members to ar rive a t a gro up deci s ion. T h ey th en eva luate
each group member' s interpersona l sk ills, acceptance by the gro up,
leade rship ability, and indiv idu al influ e nce.
o Management games. Participants solve real istic pr oble ms as m embe rs of
simulated companies competing in a marketp lace. The y may ha ve lo d ec ide, for
instance, how to advertise and manufacture, and how much inve n lo 1-y to stock.
o Individual presentations. Each par ticipa nt is req u ired to m ake a n assig ned
oral presentation. Trainers evaluat e each pa rt icipant 's commu ni rntio n sk ills
and per suasiveness.
e Objective tests. An assessme nt center typ ically include s tests of perso na lity,
menta l ability, interes ts, and ach ievements.
u The interview. This interview betwee n at lea s t o ne lr .:iine r an d each
participant, to assess the latter's int erest, past performa nce, an d
motivation .
Most expe rts view assessment centers as effect ive methods fo r se lect ing and
pr omoting man age ment candid ates. The question is, a rc they wo rth thc i r ext ra costs?
Th ey are expe nsive to deve lop, take mu ch longe r than con ve n tion a l pa p e r ,md pencils
tests, and require managers to act as assessors and , often req uir e psychologi s ts.

Typical simulatedexercisesat a management

assessment center includeindividual presentations. where
participantsare evaluatedon theircommunication
skills andpersuasiveness.
 6 e Empl oyee Testin g and Select ion

Miniature job --------

Miniature JobTraining And Evaluation training and evaluat ion
Train cand idates to perform
Approach several of the job's tasks,
and the n evaluate their
In this approach, candidates are train ed to perform a sam ple of the job's tasks. Their performance before hiring
performance is then measured. The approach assume s that people who demon strate them.
that th ey can learn and perform the sample tasks will be able to perform the job itself.
Th is approach ha s seve ral advantages:
o It tests applica nt s with actual sa mple s of the job rather than ju st wit h paper-
and- pencil tests .
tl It is "content relevant."
u lt ma y thu s be mor e acceptable (and fair) to disadvantaged applicants than
mo st paper-and-penc il tests .
How eve r, it emphasize s indi vidual instruction during training, and is a
relati ve ly expensive screen ing approach.

Managershiredthe employeesat
this Hondaplant in the UnitedStates
after seeingwhichof themdid the
bestin the company'sminiaturejob
training and evaluation program.

Other SelectionMethods
Testin g is only part of th e selection proce ss. Ot her to ols ma y include verifying
back ground in formation and reference check.

Background Information and Reference Check

Most emp loyers check th e job applicant 's back ground in format ion and re fere nces .
The obj ective is to verify the accurac y of factua l in formatio n provided by the
app licant and to un cove r any miss ing in forma tion.
Background and reference checks can tak e man y form s. Most empl oye rs
at least tr y to verify applicant s' curr ent position and salary with the ir curr ent
emp loye r by phon e (assumin g doing so wa s cleared w ith th e candid ate). Other s
call the applicant' s curr en t an d previou s sup ervi so rs to try to d iscove r more ab out
th e per so n's moti vat ion, techn ical comp etence, and abilit y to work w ith oth ers.
Som e employ ers ge t background reports from comme rcial cred it ra tin g
comp an ies . Th e latter can prov ide informa tion about credit standin g, indebt edn ess,
reputat ion, characte 1~ and lifesty le. Some emp loye rs ask for w ritt en refer ences .
Figu re 6.9 shows a form used for phone refere nce.
 Part 2 o Recruitment and Placement

(Verifythat theapplicanthasprovidedpermissionbefore conducting referencechecks.)

Candidate
Name ______________ __ ___ __ _ _

Reference
Nam e __ _ ____ _ _ _ _____ _____ __ _

Comp any
Name _ _ _ _ _ ___ _ __ __ _ ___ ____ _ _

Dates of Empl oyment:

From:__________ To: _ __ ___ ____ _

Position(s)
Held ______ ____ ___ ____ ___ _

Salary
History______________ ___ ___ __ _

Reason for
LeavinY- --------- - ---- - - --- ---

Explain th e reason for your call and verify the abo ve inform ati o n with th e sup e rvi so r
(includin g the reason for leaving)

1. Pleasedescribe th e type of wo rk for which the candid ate was resp o nsibl e.

2. How wou ld you describe th e applicant 's relationship s w it h co w o rke rs, sub o rdinates
(if appli cable), and w ith superiors?

3. Did the candidate have a positive or negat ive wo rk alt itud e? Please elab o rate.

4. How woul d you describe the quant ity and quality o f outp ut g enerated by t h e
former employee?

5.What we re his/her strength s on the j ob?

6. What we re his/her weaknesseson the j ob?

7.What is your overall assessment of the candidate ?

8. Would you recomm end him/ her for this positio n? Why o r w hy nor?

9. Would this ind ividual be eligible for rehire? Why or w hy no t ?

Figure 6.9
Reference Checking Form Other comments?
~~urce: So cie t y for Human Resource Manag em ent,
2004 Rep rod uced wit h perm ission of Society
fo r Human Resourc e Management in the Forma t
Textb o ok via Co pyright Clearance Cente r.
 6 ° Emp loyee Testing and Select ion

Mostemployerscheckthe job applicant's

''Goo d rnornin g. (d like to enquir_~ backgroundinformationand referencesto
"I gues s tho.f's o. no ."
o.bout o. forrner empl oyee. Mr - -. verifythe accuracyof information provided
and to uncoverany missinginformation.

ff hand led properly, the backgro un d check can be useful. It is an inexpe nsive
and straight forwa rd way to ver ify factual info rm ation about the ap plicant, such
as cur rent and prev ious job titles, current salary range, d ates of emp loyment , and
ed uc ation backgro un d.
Comp anies answering requests for references need policies about th.is .
They should ensure that only authmized managers provide infonn ation.

Medical Examination
There are seve ral reasons for having pre-emp loyment med ical exams:
u Verify that the app licant meets the physical requir ements of
the po sition, an d d iscover an y medical limitat ions that you
shou ld ta ke into account in placing the app licant.
v Estab lish a recor d and baseline of the app licant' s health for
fu tu re insurance or comp ensation claims.
u By identifying health prob lems, the exam inat ion can also
redu ce absent eeism and acciden ts and detect communi cable
d iseases that may be unk now n to the ap plicant.

Complying with Immigration Law

In mo st coun tries, there are immigration laws related to the emp loyment Byidentifyinghealthproblems.medicalexaminationscan reduce
absenteeism and detectcommunicablediseasesthat maybe
of foreign wo rkers. These worke rs must have special wo rk permits or unknownto the applicant.
employment passes before they can start work.

HR in ACTION
L,..;' Employment Pass and Work P~rmit
In Singapore, employers must apply for employment pass if they want to employ a
foreign professional, manager,or specialist. The Ministryof Manpower (MOM)issues
several categories of employment passes: ·
o P Pass is issued to foreigners with acceptable degrees, professional
qualifications, or special skills. · ·
e Pl Pass is forforeigners whose monthlysalaryis more than $7,000.
O P2 Pass is for foreignerswho earn between ·$3,500and $7,000.
o Ql Pass is for foreigners whose monthly income is more than $2,500.
o S Pass is for foreigners whose salaryis at least·$1,800.
Under the Employment of Foreign Workers Act, the MOMis·sues WorkPermits to
foreign workers whose monthlysalary is not more than $1,800.The MOMalso issues a
special Employment Passfor Entrepreneurs (EntreP9 ss) to foreigners who plan to start
a busine·ss in Singapore (www.mom.gov.sg). ·
Part 2 e Rec ruit m ent and Placement

TestingAnd Selection
PracticesIn Asia
In Asia, testing and selection practic es va ry fro m cou n tr y to co un t ry. T he se p ractices
are affected by the stage of economic dev elop men t as w e ll as cu lt ur a l fac to rs in
each count ry. In some cases, western compa nies ha ve to m odi fy th e ir pract ices to
suit local conditi ons.

Hong Kong
In H ong Kong, selection meth ods range from simp le applic a tio n fo rm s and res u me,
to sophi sticated tests and assessment centers. Large compa nies vvit h H R de p ar tments
are mor e thorough in their selection p rocess .7 In a st ud y d o ne by th e H o n g Kong
Institu te of Hum an Resource Man age ment, 99 percen t of th e res p o nd e n ts u se d the
selection interview.8
Since 1996, Hong Kong has intro duced a seri es of di s crim inat io n la w s that
mak e it un law ful to discrimin ate aga inst a perso n becau se of ge n de1~ mari ta l s tatus,
disability, or fami ly status. These laws have ser io us im pl ica tio ns fo r HR prac tices
includin g recruitin g and selection.

Japan
When compani es recruit mid-car eer em p loye es, they eva lua te the appl ica n ts' past
exp erience, skills, and professional know ledge from the ir res u m es . In te rv iew is the
most common method used in se lection.
Selection procedure for is a more complica ted pro ces s . In add itio n to
submitting the app lication w ith the requi red in formatio n, a p p licant s h av e to sit
~or the comp any's examin ation and a tten? . ~everal in te rv iews . The examina ti_ on
1
1s des igned to assess the applicants ab1ltttes such as co m m o n sen se, n ative
and foreign languages, mathematics, intelligence, and p e rso n a l ch ar ac teri stics.
It may includ e an essay on various issues to find o ut the ap pli ca n ts ' a nal ytical
ability and suitabi lity to the organizational cultur e.9

Malaysia
In Malaysia, compa nies use a w id e range of se lect io n met h o d s. T h ese in clude
app licat ion forms, interv iews, tests, and health checks. For lo w- lev e l e mpl o ye es, the
interview or test is usually simpl e as the objectiv_eis to find o u t the c1_rp l ica n t' s skills
and abili ty. For high-level positions, some app licants may be re q u ired to u nd ergo
a ser ies of tests that are designed to measu re their inte llige n ce, a p titud e, s k ills, or
persona lity. Most written tests are graded by co mp u ter s . Tes ti ng co mp a ni es are
careful in eliminating cultu ral and gend er biases . Tes ting packa g e s m ay incl u de a
scan ner for scoring and test-generati ng software . 10

Singapore
Chew and Goh stu died the HR p ract ices in 408 Sin ga po re compa ni e s in all
indu stries by means of stru ctur ed interviews . 11
On selection practices, respondents were asked to indi ca te whic h m ethods
were used in selecting applicants fo~ three empl_oy~e g rou ps, na m e ly m anagers,
~uperv isors, and rank and file. Weighted app licatio n form s, refer enc e checks,
111
terviews, and med ical examination were the most freque n tly u se d . H ow evei~
there were some differences for ead1 group. Reference checks w e re m o re co m monly
used to select man agers (58 percent) comp ared w ith su pervi so rs (46 pe rcent)
 6 ° EmployeeTestingand Selection

and rank and file (37 percent). Performance tests, work samp les, job ability tes ts,
and ph ysical abi lity tests were more frequently used to select rank and file employees.

South Korea
In So uth Korea, the se lection proce ss varies by firm size, occupation, and position.
Applica nt s to mana gerial po sitions undergo a competitive and rigorous selection
proc ess . It include s reference checks, interview s, physical examination in additi on to
wr itten exa minations. Successfu l applicants for important positions in government
and large bus inesses are usually from high -rankin g uni versit ies. 12
ln view of the shorta ge of production workers, the selection for the se jobs is
relat ively simple. Production jobs in light indu stries are done most ly by female
workers w ith high school educat ion. Jobs in heavy and chemical indu stries are
do min a ted by young men. 13

Thailand : Comparing American, Japanese, and

T hai Comp anies
In their s tudy on HR practice s in Thailand, Lawle r et al. ha ve noted so me di stin ctive
diff e re nces among American MNCs, Japane se, and local Thai firms. Being goo d
pa y masters, American MNC s usually attract high-quality applicants. These
MNC s u sua lly have on ly a few American expatriates, mo stly in top managem ent.
Middl e-level mana ge rs and prof ess ional positi ons are filled by locals. H oweve r,
in se lec tin g local managers and prof ess ional s, these companies ensure th at the
app lican ts fit well int o an American style orga nization. Thu s, se lection favors
those w ho are alread y "Ame ricanised", for example , fluent Engli sh speake rs
ed u cated in the Unit ed States or who have worke d for American companie s before.
Mor eove r, American firm s genera lly hav e good internal HR systems, w ith rapid
career advanc ement for high performers, th us attracting young er and amb itious
applicant s. 1~
In contrast, d es pit e offering lowe r pa y than American MNCs, Japanese
compa nies are able to attract good app licants as job security is the attraction
when co mpared w ith American compani es. Although lifetime emp loyme n t is not
form a lly instituted as in Japan, emp loyees are unlik ely to be dismisse d. A lmost
a ll ex ternal hiring is don e at the entr y leve l, while other openings are filled by
int e rn a l rea ss ignment. These HR pract ices prom ote loya lty and comm itme nt.
Soc ial networks are used extensive ly for hiring production wo rker s as we ll as
for se lectin g managerial and profe ssiona l emplo yees , alt hough the latter are
subject to cons iderab le formal test ing. The reaso n for re lying on netwo rkin g to fill
vacanc ies is that recrui ts are likely to be simila r to the cu rrent emp loyees and will
pr es umabl y be as readil y adapted to the Japanese sys tem.
In a typical small family-owned Thai company, netwo rkin g is an imp or tant
part of the informal hiring and se lection practic e for most job s. Know ing someone
in th e owner-family or some key emplo yees is often critical to obtaining a job.
Such practic es tend to promote organi zational attachment and facilitate intern al
netwo rking. H owever, the loyalty and comm itment d emand ed of emp loyees in
Japan ese comp anie s is not a feature of the tradition al Thai syste m, though perso na l
loya lty to the ow ner may be very import ant.
In large Tha i compan ies, hiring mana ge rs and prof ess ional staff is more
probl ematic th an in the other three types of organizat ions. These comp anies tend to
lose e mpl oyees to MN Cs that offer higher pay and pres tige. Whil e family me mb ers
o f imp o rta nt e mpl oyee s may have an advantage in obtaining work, mor e jobs are
filled by out siders as these compa nies attempt to projec t a profe ssional image by
a ttractin g comp ete nt man agers and pro fessionals. The select ion pro cess is usuall y
Part 2 e Recruitment and Placement

less sophi sticated than that in the MNCs . Unl ike Ame rican co mp a ni es, ne two rking
is still an imp ortant factor in securin g empl oy ment.

Vietnam
By interview ing manag ers in two state-ow ned ent erp rises (SO Es) and tw o M Cs
in Hanoi , Kamoche studi ed the statu s of HR pr actices in Vie tnam a fter refo rm s had
been introduced. 15
Both SOEs and MNCs we re remarkably simil a r in se lec ti n g e mpl oyee s. The
int erview was the only formal method used in the fou r comp a n ies . O ne uni que
fea ture of selection is the imp ortan ce attached to lo ng -te rm rel a tio ns hip and
int erp ersonal tru st. Comp anies relied on trusted cont act s a n d ex is tin g e n1p loyees.
In man y cases they we re required to go throu gh stat e labor b u rea u s, w hi ch was part
of th e "Local People 's Committ ee," the local w ing o f the rulin g p o liti ca l p a rty.
Recruitment bega n by word of mouth , and we n t th rou gh a care fu l assess ment
of the family backgro und and merits of the appl ican ts. Th e u se o f co nt acts served as
a reliable control mechani sm becau se existin g e mpl oyee s w o ul d o nl y reco mm end
tho se the y tru st, other wise their own reput ation wo uld be a ffec ted.
The selection process placed much emph asis o n lon g -te rm com mi tment to
establish tru sting relationship . The selection met hod s we re ju d g ed o n th e ex tent lo
w hich they realized social rather than bu siness out com es, espe cia lly in th e SOEs.
Examination could be used to wee d ou t incomp eten t ap pli ca n ts . An y e ffort by
expatriate manage rs to use western practices wo ul d h ave to wo rk w ithin these
constraint s. Recruitm ent agencies we re viewe d w ith su s pi cio n a s th ey in volved
un know n third pa rties.

CHAPTER SUMMARY
1. Tes t validit y ex plain s wh at a test meas ure is. '
2. Crite rion va lidity show s that tho se who do well on th e test will do we ll on th e jo b.
3 - Cont e nt validity show s that th e test has a fair sampl e of th e cont ent of th e job. l
4 - On e w_a y to m easure re liability is to administe r th e same (or equivalent) test s to th e sa m e p e opl e at
t wo differ e nt p oint s in time. I
5. Th e~e a re m any typ es of per sonn el te sts, including intelligence_te sts, tes ts of phy s ica l skills, t es ts of f
ac hieve m e nt, apti t ud e tests, interest inventorie s, and personality tests.
6 . For a se lec tio n tes t to be useful, scores should be able to predict pe rform a nce on th e job .
7. Th e work sampl e sele ction t echniqu e is based on "th e assumption that th e be st indi cat o r of futur e l
performan ce is past performanc e :·
8 . ~a n age m e nt a ssess ment cent e r expo ses applicants to a se ries of real -life ex er c ises . Pe rformanc e l
is o ~ s~ rve d and a sse sse d by exp erts , who then check their assessm e nt s by o b se rv ing th e
~ a rt1c 1pant s w h e n the y a re ba ck at their jobs. Exampl es include a simul ated busin ess gam e , an
in -ba s ket exe rcise, a nd group discu ssion s.

KEY TERMS
co nt e nt va lidity, 137 negligent hiring, 136
c riter io n va lidity , 137 reliability, 136
e xpec ta n cy ch art , 140 test validity, 137
min iatur e j o b tr a ining and evaluatio n, 145
 6 8 EmployeeTestingandSelection

DISCUSS!
1. What is th e diff erence between reliabilit y and validit y? In w hat respects are th ey simil ar?
2. Explain how you would validate a t est. How can thi s information be useful to a manager?
3. Explain w hy yo u think a psychologist wh o is specifi cally train ed in t est con structi on should (or should not )
always be used by a small business developing a test battery .
4. Give some exampl es of how to use int erest invent ories t o impr ove emplo yee selection . In doing so, sugg est
several example s of occupati onal interests th at you believe may predi ct success in variou s occupations ,
includin g prof essor, account ant , and comput er programmer .
5. Wh y is it important to conduct a pre-emplo yment backgroun d check? How would you do it?
6. Expl ain how yo u would deal w ith th e problem of fo rmer empl oye rs bein g unwilling to gi ve bad references
o n th eir former employ ees.
7. How can emplo yers prote ct th emselves against neglig ent hiring claims?

••••••••••••••••••••••••••••••••••••••••••••••••••••
INTERACT!
ACTIVITY 1 Workin g individuall y or in group s, develop a list of selecti on t echniqu es th at you wo uld
suggest yo ur dean use to hire the next HR professor at yo ur school. Also, explain w hy yo u chose each selecti on
te chnique.

ACTIVITY 2 Workin g individually or in groups, contact th e publi sher of a standardized t est such as t he
Scholasti c Assessment Test and ob tain from the m w ritt en in for matio n regardin g th e test 's va lidit y and
reliabili ty. Present a short report in class discussing w hat t he test is supposed to measure and t he deg ree to
w hi ch yo u t hink t he test does w hat it is supposed to do, based on t he repo rt ed validity and reliability scores.

••••••••••••••••••••••••••••••••••••••••••••••••••••
USEYOUR HR SKILLS!
Where is Our Swimming Team?
In Decem ber 2004, t he coach and five members of yo ur nati onal swim min g team we nt fo r an exchange v isit t o
Thailand. On th eir way hom e, th ey spent a few days at Phuket fo r th eir holidays. They we re report ed mi ssin g
w hen th e tsunami hit Phuket and many part s of South and South east Asia. Your nation al swimming t eam now
need s a new coach and several swimm ers t o repl ace th e missin g memb ers in t ime for th e 2008 Beijin g Olympi cs.
Mo rale among th e oth er t eam members has been affected by th e tr agedy.

Questions
1. You are th e Chairman of th e Nation al Swimmi ng Council. How wo uld you boost t he mo rale of t he remainin g
team m em bers?
2. How wi ll yo u fin d a new coach?
3. How w ill yo u fin d replacement s for th e mi ssing swimm ers?
 Part 2 e Recruitment and Placement

EXPERIENCE HR !
A Test fo r a Reservat ion Clerk
Purpose l
The purpose of this exercise is for you to develop a test to measuret he abi lity for the job of an ai rl ine reservation
clerk. If time permits, you will be able to combine your tests into a test batte ry.

Required Understanding .
You should be familiar with the procedure for developing a personnel test and shou ld read t h e following
description of an airline reservation clerk's duties:
1. Customers contact airline reservation clerks to obtain flight schedules, pric es, and itin erari es.
2. The reservation clerk looks up the requested information on the airline 's on lin e flight schedule system s,
w hich are updated continuously.
3 . The reservation clerk must deal courteously with the customers,and be able to quickly fi nd alternat ive fli ght
arrangements to provide the customers with the itinerary that fits th eir needs.
4. Alternative flight s and prices must be found quickly, so that the customer is not kept waiti ng, and so that our
reservations op erations group maintain s its efficiency standards. .
5. It is often necessary to look under various routings, since there may be a doz en or mor e alt erna t ive routes
bet we en the customer 's starting point and destination.
You may assume that the airline w ill hire about one-third of the applicants. Your objec t ive is to create a test that
is useful in select ing them .
•
How to Set Up the Exercise
Divid e the class into teams of fi ve or six student s.
Th e id eal candidate shou ld have the skills and abiliti es to perform this j ob we ll. Your job is to select a single
ability and to develop a test to measure that ability. You may only use the materials available in th e room. The
test should permit quantitative scoring and may be an individual or a group test.
Go to your assigned groups and, as per our discussion of test development in t his chapter, eac h group
should make a list of the abilities that seem relevant to successon t he airline reservat ion clerk's job. Each group
should ~hen rate the importance of these abilities on a five-poin t scale. Then, develop a test to measure what
yo u be! ieve to be the top-ranked ability. If time permits, the group s should comb in e th e va riou s t ests from each
group into a test battery. If possibl e, leave time for a group of students to tak e the test ba ttery.

•••••••••••••••••• •••••••••••••••••••••• ••••••••••• •

-~ Laundry Company

A CONTINUING CASE IN EVERYCHAPTER.••

TeSt ing 0nd Screening to Reduce Turnover
}e~ Ko, Co~sultant Manag er of KK Laundry, and her father Jak Ko the Founder Manager have an easy but hard
Jo w hen it co me s to screening j ob applicants. It is easy because for two imp ortan t jobs - the people wh o
ac_tually do th e pressing and those who do the cleaning-th e applica nts are easily screened w ith about 20
minute s of ~n-the-job testing. As Jen puts it, "applicants eith er know how to pr ess clothe s fast enough o r how
~ob~'secleaning chemicals and machines, or they don't. We find out very quickly by just tr ying t h em ou t o n t he
JO.
d The more difficult prob lem is employee turno ver. Jen and her fath er need to impl ement practices that w ill
re uce th e rate of emplo yee turno ver. If th ere is a way to do this thr ough th e use of employee t estin g and
 6 ° Employee
Testing
andSelection

screening techniques, Jen would like to know about it. This is because much of the management time and money
are now being wasted by the never-ending need to recruit and hire new employees.

Questions
1. What screening techniques can the company use to screen out turnover-prone applicants?
2. What kind of procedure should be set up to handle reference calls about employees when they apply for jobs in
the company?

••••••••••••••••••••••••••••••••••••••••••••••••••••••

THEH~ coRECARD
Strategy and Results-Hotel Internationa l
The New Employee Testing Program
Hotel lnternational's competitive strategy is: "To provide superior guest services to increase the length
of stay and return rate of guests, and thus to increase revenue and profit: '
As she was deciding whatto do next, HRDirector Li of Hotel International Group knew that employee
selection was very important in her plans. The hotel only had an informal screening process. Local hotel
managers received application forms, interviewed applicants, checked their references, and decided
who to hire. However, a pilot project using an employment test for service people at one of the local
hotels in the group had produced some surprising results. Li found consistent, significant relationships
between test performance and a range of employee competencie s and behaviors such as speed of
check-in / out , employee turnover, and percent of calls answered with the required greeting . Clearly,
she had found something important. She knew that employee competencies and behaviors like th ese
would improve guest service at the hotels. She therefore had to decide what selection procedures
would be best.
Li's team, working with an industrial psychologist, designed a test battery that they believe will
produce high morale, people-oriented employees. It includes a work sample test for front-desk clerk
candidates to spend ten minutes processing an incoming guest. There is also a personality test to weed
out applicants who lack emotional stability.
The subsequent validity analysis shows that scores on the test batteries predict scores on the hotel 's
employee competencies and behavior metrics. A second analysis has confirmed that the percentage of
employees hired after testing rose, so too did the hotel 's employee competencie s and behavior scores,
for instance in terms of speed of check-in / out, and the percentage of guests receiving the required
greeting (see Figure 6.10).
Director Li also found other measurable improvements resulting from the new testing process.
For example, it took less time to fill an open position and cost per candidate was reduced, so the
HR Department became more efficient. The new testing program has contributed to the hotel 's
performance and profit.

Questions
1. Give a detailed example of the front desk work sample.
2. Give a detailed example of two possible personality test questions .
3 . What other tests would you suggest to the HR Director and why?
 Part 2 ° Recruitm ent and Placement

••
5 . Strategic Rankings in Profit margins Percent share of Annua l revenues
.
.
performan ce industr y service and total annual market
metrics satisfaction profits
(Are we achieving surveys
our strategicgoals?)

t
4 . Strategi cally Guest service
satisfaction index
Number of written guest
compliments and/or
i
Vario us customer and
Hotel Intern ational
•
11
relevant customer
and organizational complaints per year outcome metrics,
outcomes metrics including;
(How can we measure frequency of guest.S'returns;
whether our customer average length of stay;and
service is actually guestexpendituresper
improving and having guest per stay
the desired effects?)

t
T
3 . Strategically Emp loyee Employeemorale Variousemployee Employee Percentage of
relevant turn over service-orienred service emp loyees
emergent behavior metrics, commitment and sco ring at least
employee including:percent engagement 90% on Hotel
capabilities and callsansweredwith index Interna cional core
behaviors required greeting: values quiz
metrics speed of check in/
(What skillsand out; percent room
actions must cleaning infractions;
our employees and percent guests
demonstrate if our receiving Hotel
company is to achieve International
its strategicgoals?) required greeting
on arrival
i i I
2 . Strategic HR
activities metrics Chapter 4, Job Chapter 5, Chapter6, Chapter 7,
(What HRfunction Anal y sis Recruiting Testing Interviewing
should we focus on,
and how should
Percentage of
employees with
Number of
applicants
Percentageof
employeeshired
Percentage of
applicant s receiving
I
we measure its updated job per recruiting based on validated structured
efficiency and desc riptions source; number employment test interview l
effectiveness?) of qualified
applicants/ I
positions

r
1. Hotel International CreateService-Or
iented EmbedCore Values EncouragePersonal Emphasize
ba sic strategic themes Workforce Employee Growth and Partn ership and
(What basic themes learning Sense of Ownership
must we in HRpursueto
help Hotel International
achieve its strategicgoals?)

Figur e 6 .10
HR Score card for Hote l Internationa l Group
Note: "(An abbr ev ia ted example show ing selecte d HR practices and outcomes aimed at implementing the co mp etitive strategy. "To use sup e rior guest
~erv1ces to diffe rent iate the Hot el Internat ional properties and th us increase the length of staysand the return rate of guests, and rhus bo ost reve nu es and
prof 1ta b1lity and help th e frrm ex pand geograp hically'.')

Endnotes
1. Sack, Steven M. 1993. "Fifteen Steps to Protect
Against the Risk of Negligent Hiring Claims:'
Employment Relations Today August , 313-20.
2. Siegel, Laurence and Lane, Irving. 1982. Personnel
and Organizational Psychology, Burr Ridge.
McGraw Hill, 170-85.
3. Ho, Janet. 1996. "How to Ease Labor Pains:' Straits
Times, 9 July.
4. Wuts, Gerrian. 1996. "Personality Tests Not for
Job-Fitting:' Straits Times (fo rum page), 12 July,
p. 59.
5. Koh, Juan Kiat. 1996. "Wo rkers Job Fitting -SNE F
Uses Job Simulation Approach, Not Personality
Tests:' Straits Times, (forum page) 20 July, p. 37.
6. Tan, Boon Huat. 1996. "All Personality Types Needed
in Any One Job:' Straits Times (forum page), 20 July,
p. 37.
7. Ng, Sek Hong and Wright, Robert. 2002. "Hong
Kong :' In Handbook of Human Resource Management
Policies and Practices in Asia-Pacific Economies,
vo l. 1, ed. Mich ael Zanko, 167-259. Cheltenham, UK:
Edward Elgar.
8. Tang, Sarah F.Y.,Lai, E.W.K.,and Kirkbride, Paul.
1996. Human Resource Management Strategies and
Practices in Hong Kong, 2nd ed. Hong Kong: Hong
Kong Institute of Hu man Resource Management.
9. Hosogaya , Nobuko. 2002. "Japan:' In Handbook of
Human Resource Management Policies and Practices
in Asia-Pacific Economies, vo l. 1, ed. Michae l Zanko,
294-367. Chelt enham, UK: Edwa rd Elgar.
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
6 ° EmployeeTesting and Selection
10. Ayudur ai, D., Siti Rohani Yahaya, and 5harifuddin
Zainuddin. 2002. "Malays ia." In Handbook of Human
Resource Management Policies and Practice s in
Asia-Pacific Economies, vol. 1, ed. M ichael Zanko,
44 1-516. Chelten ham, UK: Edward Elga r.
11. Chew, Irene K. H. and Goh, Mark. 1997. "Some
Future Directions of Human Resource Practices in
Singapo re:' Career Development International 2,
no. 5.
12. Ko, Sangwon 2002. "Republic of Korea''. In
Handbook of Hum an Resource Management
Policies and Practice s in Asia Pacific Econmi cs,
vol.1, ed, Michea l Zanko, 368-440. Cheltenham,UK:
Edward Elgar.
13. Rodgers, Ronald A. 1993. "Industrial Relations in
Transition: Recent Development and Prospects: '
In Social Issues in Korea: Korean and American
Perspective, eds Lawrence Krause and Fun-koo Park,
67-108. Seoul, KDI Press.
14. Lawle r, J.J.,Ma hmo od, A. Zaidi , and Vin ita
Atm iyanandana. 1989. "Human Resources Strategies
in Southeast Asia: The Case ofThai land: ' In Research
in Personnel and Human Resources Management,
Supplement 1, eds Albert Nedd, Gerald Ferris, and
Ken M. Rowland, 201-23. Greenwich, Conn.:
JAi Press.
15. Kamoche, Ken. 200 1. "Human Resources in Vietnam:
the Globa l Challenge: ' Thunderbird International
Business Review, Sept -Oct, 43, no . 5: 625-50.
 ear · g Obiecti es
After stu dying this chapter, you should be
ab le to:
1. List the main types of selectio n inte rviews.
2. Explain factors that affect the usefulnessof
interv iews.
3. Explain w hat a strateg y-ori ented HRM
system is and w hy it is imp o rtant.
4 . Effective ly int erv iew a j o b candida te.
 part
Chapter 7
Interviewing
Candidates
.....
-·
3
(D
A
t the Hotel Internationa l Group, HR
Director Li noted that her branch hotel
had its limits. She knew that it was important for
the hotel group to have a package of interviews .....
::,
managers varied wide ly in their interviewing that the branch hotel managers could use to
0
skills. Some were quite effective but most assesscandidates for various positions. It was ::,
were not. The hotel did not have a formal
int erv iew training program. It did not even
only in that way that the managers could hire
employees with competencies and behaviors a.
.,,
have st andardized interview packages that it s
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 Part 2 e Recruitment and Placement
O What is an interview?
0 Whydo companiesconduct
interview?
Unstructured inte rview
In this interview, the
interviewer pursues points
of interest as they come up
in response to questions.
Structured interview
An interview following a set
of questions.
BasicFeaturesOf Interviews
An interview is a procedure to get information from applirnnl s by ask ing them
questions. A selection interview can predict future job perforn,a ncc based on the
applicants' answers to questions asked by the interviewer s. The interview is the
most widely used selection procedure. While not all compan ies use tes ts, <1ssessment
centers, or even reference checks, most companies will inter view job app licants.
TypesOf Interviews
Companies use interview for several pur poses. For examp le, there arc se lection,
appraisal, and exit interviews. ln an appraisal interview, a sup erviso r and the
employee discuss the employee's rating and possible remed ial act ions . When an
employee leaves a company, the HR department may cond u ct an ex it in terview.
The purpose is to find information about job-related matters that ma y g ive the
employer some insight into what is right or wrong about the compa ny.
Many techniques covered in this chapter also apply to ap praisal and exit interviews.
However, we shall postpone a complete explanation of these ty pes o f interviews until
Chapters 9 and 10, respectively.This chapter focuses on "selection interv iews."
We can classify selection interviews according to:
o Their structure
o Their content-t he types of questions they contain
o How the company administers the interviews .
Structured Versus Unstructured Interview
ln an unstructured interview, there is no set format. This allows the intervievver
to ask questions and follow up on points of interest as they d evelo p. Inte rviewees
for the same job may or may not get the same questions. There is no formal gu ide
for scoring answers.
1n a structured intervi ew, the questions and acceptab le answe rs a re specified
in advance and the answers are evaluated. Figure 7.1 show s a str ucture d interview
guid e.
Pros and cons
ln stru ctured interviews, all interviewers ask all app licants the same qu estio ns.
There are several advantages:
u They are more reliable and valid.
They can help those who may be less comfortable doi ng in terv iews to
conduct better interviews.
Standardizing the interview increases consistency across ca nd ida tes,
enhances job relatedness, and reduces bias.
The disadvantage is that structured interviews do not always prov id e th e
opportu nity to follow up on points of interest as they deve lop .
Types of interv iew
Based on the content of the questions, interviews may be classified as follows: (see
Figure 7.2)
e Situational interview
Behavioral interview
e Job-related interview
o Stress interview.
___
 7 ° Interviewing Candidates

APPLICANT INTERVIEW GUIDE

To the interviewer: This Applicant Interview Guide is intended to assist in empl oyee selection and placement. If it is used fo r all
appli cants for a position, it will help you to compare them, and it wili provide more objective information than you will obtain from
unstructured interviews.
Because this is a general guide, all of the items may not apply in every instance. Skip th ose that are not applicable and add questions
appropriate to the specific position . Spacefor additiona l questions will be found at the end of the form.
Federal law prohibits discrimination in emp loymen t on the basis of sex, race, color, nationa l origin, religion, disability, and in most
instances, age. The law of most states also ban some or all of the above types ofdiscrimin ation in employment as well as discrimination
based on marita l statu s or ancestry. Interviewers should take care to avoid any questions that sugg est that an employment decision
will be made on the basis of any such factors.

Job Intere st
Name __ _ ___ ___________ __ __ Position appl ied for ___ _ _ ___ __ __ ___ _

What do you think the job (position) involves?_________________________ _ __ _

Why do you want the job (position)? _ _ _________ ___ __________________ _

Why are you qualified for it? ______ _ _ _ ____ _ __ __ __ _ ___ ____ _ ______ _
What would your salary requirements be? _ __ _____ _ __ ____ _ _ __ ___ __ _ ______ _

What do you know about our company?_ _ ____ _ ____ _ ___ __ _ _____ _ _ ______ _
Why do you want to wo rk for us?_ _ ____________ __ _________ _ ___ _ ____ _

Current Work Status

Are you now employed? __ _ Yes___ No. If not, how long have you been unemployed? ___ _ _______ _
Why are you unemployed? __________ ____ ________ __ ___ __ ___ __ _

If you are working , why are you applyin g for this position? _________________________ _

When would you be available to start work with us?_______________________ ____ _

Work Experience
(Start wit h th e applicant's cu rrent or last position and work back. All periods of tim e shou ld be accounted for. Go back at least 12 years,
depending upon the applicant's age. Military service should be treated as a job.)
Current or last employer ______ __ ________ Address ___ ___ _ _ _____ ____ _

Dates of emp loyment: from _ __ _ _ __ ___ __ __ to __ ___ __ _ _ _ ___ ____ ___ _ _

Current or last job title----------------------------------- - - -

What are (were) your du ties? _________________________ _ _________ _

Have you held th e same job thr oughout your employment with that company? ____ Yes____ No. If not, descr ib e the
vario us jobs you have had with that employe r, how long you held each of th em, and the main

duties of each. - --- --- --- - -- - -- - --- ---- - -- - - - - ---- -- -----

What was your starting salary? ____ _ __ What are you earning now? _______ Comments _______ _

Name of your last or current supervisor _ _ __ __ _ ______ _ ___________ ___ ____ _

What did you like most about that job? _________________ _ ___ _________ _ _ _
What did yo u like least about it? _ __ ___ ___ ___ _ _ _ _ _ _ ______ _ _ ____ _ __ _ _

Why are you thinking of leaving? ____________________________ _ __ ___ _

(continu ed)

Figure 7.1
Structured Interview Guide
~011rce· Co pyright 1992. The Dartne ll Corpo ration, Chicago, IL.Adapt ed with perm, sison.
 Part 2 o Recruitmentand Placement

Why are you leaving right now? _____________ ______ ________ __ ____ __ __ _

Interviewer' s comments or observations __________ ____ _ _____ _____ _____ ____ _

What did yo u d o before you took you r last job? ____________ _____ ____ _____ ____ _
Where were you emp loyed? _____ __ _ _ __ _____________ ____ ________ _ _ _
Locat ion ______ _ ______ Job title ___________ _ Duties ___ ____ _____ ___ _ _

Did yo u hold the same job throughout your employment with that company?__ Yes __ No. If not . d escrib e t he Job s yo u held.
when you held them, and the du ties of each.- ----------- ------- ---- ----- ---- -
What wa s your starting salary? _________ What was your final salary?____ _ _ _ _ __ ______ ___ _ _
Name of your last supervisor _________________________ _____ ____ ____ _

May w e contact that company? __ Yes___ No

What did you like most about that j ob? _ ______ ________________ _____ _____ _

What did you like least abo ut that job? __________________ ______ ________ ___ _
Why did you leave that job? _ _ __ _ ____ __ ___ _________ ______ ______ ___ _

Would you conside r work ing there again? _______________ _ _ _____ __________ _ _

Inter viewer: If there is any gap between the various periods of employment, the applicant should be asked
about them . _ __ ___________________________ _______ __ _____ _

Inter viewer 's comm ents or observations----------------- --------- ------ ---

What did yo u do p rior to the job w ith that company? ___ ___ _________ ______________ _

What oth er j o bs or experience have you had? Describe them briefly and explain the general dut ies of each.
Have you been unemployed at any time in the last five years? __ Yes __ No. What efforts did you make to fi nd w o rk? _____ _

What other experience or training do you have that would help qualify you for the job appli ed for? Explain how
and w here yo u obtain ed this experience or training. ___ __ __ ____ _______ ___________ _ _

Educational Background
What edu cation or train ing do you have that wo uld help you in the job for which you have appli ed? _ _ ___________ _

Describe any formal educ ation yo u have had. (Interviewer may substitute technical training, if relevant.) ____ _ ___ _ ___ _

Off -Job Activitie s

What do yo u do in your off -hours? ___ Part-time job __ __ Athletics__ Spectator sport s ___ Club s _____ Oth er
Please explain. ______________ _ _ ______ ___ __________________ _

Interviewer's Specific Questions

Inte rview er: Add any qu estions to the particular j ob for which you are interviewing, leaving space for brief answer s.
(Be careful to avoid qu estion s w hich may be viewed as discriminatory.)

(co nti nued )

figure 7.1 (Continued)

 7 ° Interviewing Candidates

Personal
Would you be wi lling to relocate? ___ Yes__ _ No
Are you willing to travel? ___ Yes___ No
What is the maximum amount of time you would consider traveling? ________________ ___ ____ _

Are you able to work overt ime? _____________________________________ _

What abo ut work ing on weekends? -------------------------------- - ---

Self-Assessment
What do you feel are your strong points? ________________________ __ _______ _

What do you feel are your weak points?_ _ ___________________ _ ____________ _

Interv iewer: Compare the applicant's responsesw ith the information furnished on the applicatio n for employment.

Clear up any discrepancies. ---------------------------------------

Before the applicant leaves, the interviewer should provide basic information about the organization and the j ob opening, if this has
not already been done. The applicant should be give n information on the work location, work hours, the wage or salary, ty pe of
rem uneration (salary or salary plus bonus, ere.),and other factors that may affect the applicant's interest in the job.
Interviewer 's Impressions
Rate each characteristic from l to 4, with 1 being the highest rating and 4 being the lowest.

Personal Characteristics 1 2 3 4 Comments

Personal appearance
Poise, man ner
Speech
Coope ration wit h interviewer
Job-related Characteristics
Experience for this job
Know ledge of job
Interpersonal relationships
Effectiveness

Overall rating for job

2 3 4 5
_ Superior _ Above Average _ Average _ Marginal _ Unsatisfactory
(well qualilied) (qualilied) (barely qualilied)

Com ments or remarks ----- - ---- -- -- ----- - - - --------- --- --- -- --

lnterviewe .________ _ Date __ _ _ _ _ __ _

Figure 7.1 (Continued)