The Effects of Media Violence on Behavior The topic effects of media violence on behavior is aimed at establishing how the consumption of violent content alter or build our behaviors especially in the younger generation, the adolescents. Considering the fact that almost in every media there is violence, action movies (movies in general), video games (Grand Theft Auto), YouTube and other social media platforms such as Instagram and Facebook. All these platforms are where we spend most of our time and one is likely to come across a violent content on a daily. Therefore, if this happens in couple of days in a year it means that this violent portrayal in the media will become the new reality. What does this mean, it means that the entertainment industry pushes violence in each one of us and especially the younger demographic. Who might grow up with some psychological conditions that might be developed from being exposed to violence either virtual or real life violence. Therefore, this topic is relevant and relevant to the society mainly because, of the concern of psychological development of the younger generation. A good example is the Columbine Tragedy, a mass shooting in ahigh that left 15 students dead and 21 individuals injured. The forensics officers and psychiatrists linked the behavior of the suspects from the exposure to violent video games and violent music. While it might not be taken seriously but media violence can harbor violent tendencies in individuals who have predisposed conditions, such as psychopathy and depression and suicidal conditions. The aspects of the topic that will be the main focus, is how virtual or comic violence can pass through the brain as real-life violence. Why does the people affected do not know how to distinguish between virtual violence and real-life violence? Bibliography Schildkraut, J., & Muschert, G. W. (2019). Columbine, 20 years later and beyond: Lessons from tragedy. ABC-CLIO. This resource will be used in the paper as it will help to dissect through the columbine tragedy and explain how violent media was responsible for the mass shooting in this school. Although there will various instances, this particularly is important as it is the first case dealing with adolescents that violent media or video games were tied to the violent tendencies of the adolescents. Bender, P. K., Plante, C., & Gentile, D. A. (2018). The effects of violent media content on aggression. Current opinion in psychology, 19, 104-108. This source on the other hand will be instrumental in establishing the effects of violent media content on aggression. This source does not have a particular age group but the better as it will help to understand the phenomenon better when all age groups are involved. This article will be useful and resourceful as it comprises of current opinion in psychology meaning that the information that is passed through is not outdated as it will resonate with modern forms of violence such as through the VR .

1. The Effects of Media Violence on Behavior
The topic effects of media violence on behavior is aimed at
establishing how the consumption of violent content alter or
build our behaviors especially in the younger generation, the
adolescents.
Considering the fact that almost in every media there is
violence, action movies (movies in general), video games
(Grand Theft Auto), YouTube and other social media platforms
such as Instagram and Facebook. All these platforms are where
we spend most of our time and one is likely to come across a
violent content on a daily. Therefore, if this happens in couple
of days in a year it means that this violent portrayal in the
media will become the new reality. What does this mean, it
means that the entertainment industry pushes violence in each
one of us and especially the younger demographic. Who might
grow up with some psychological conditions that might be
developed from being exposed to violence either virtual or real
life violence.
Therefore, this topic is relevant and relevant to the society
mainly because, of the concern of psychological development of
the younger generation. A good example is the Columbine
Tragedy, a mass shooting in ahigh that left 15 students dead and
21 individuals injured. The forensics officers and psychiatrists
linked the behavior of the suspects from the exposure to violent
video games and violent music. While it might not be taken
seriously but media violence can harbor violent tendencies in
individuals who have predisposed conditions, such as
psychopathy and depression and suicidal conditions.
The aspects of the topic that will be the main focus, is how
virtual or comic violence can pass through the brain as real-life
violence. Why does the people affected do not know how to
distinguish between virtual violence and real-life violence?
Bibliography
Schildkraut, J., & Muschert, G. W. (2019). Columbine, 20 years

2. later and beyond: Lessons from tragedy. ABC-CLIO.
This resource will be used in the paper as it will help to dissect
through the columbine tragedy and explain how violent media
was responsible for the mass shooting in this school. Although
there will various instances, this particularly is important as it
is the first case dealing with adolescents that violent media or
video games were tied to the violent tendencies of the
adolescents.
Bender, P. K., Plante, C., & Gentile, D. A. (2018). The effects
of violent media content on aggression. Current opinion in
psychology, 19, 104-108.
This source on the other hand will be instrumental in
establishing the effects of violent media content on aggression.
This source does not have a particular age group but the better
as it will help to understand the phenomenon better when all age
groups are involved. This article will be useful and resourceful
as it comprises of current opinion in psychology meaning that
the information that is passed through is not outdated as it will
resonate with modern forms of violence such as through the VR
machines something that was not there 10 or 15 years ago.
Holmgren, H. G., Padilla‐Walker, L. M., Stockdale, L. A., &
Coyne, S. M. (2019). Parental media monitoring, prosocial
violent media exposure, and adolescents' prosocial and
aggressive behaviors. Aggressive behavior, 45(6), 671-681.
This article on the other hand will look at a different angled of
the matter and particularly parental media monitoring, whereby
the parents are in charge of what media content the children
consume. This is somewhat a remedy of avoiding the aftermaths
of exposure to violent media to children or growing teenagers.
Providing remedy such as the prosocial exposure to violent
media and prosocial aggressive behaviors in adolescents.
Intro/topic 71/80 Effects of media violence on behavior is a
solid topic with lots of research on it. This means you can be

3. picky when looking for sources. Look for those that have been
cited a lot by other researchers. With the OU library (and many
others) physically closed, it will be important to make sure you
have electronic access to the full articles. Getting access to
books will be trickier now, too.
Source quality 24/30 I asked for four sources; you have three so
far. The Bender et al. (2018) is just four pages long. It is
presumably a brief literature review itself rather than original
research. Also, it does not appear OU has access to this
particular journal. The one about parent mediation could be
solid.
Source relevance 25/30 Two of your three sources are relevant.
The book on Columbine briefly mentions media violence a
couple times as a possible contributing factor, but it is not about
media violence, nor is it research about media violence.
Summaries 51/60 In summarizing research, it is important to
focus on your source’s findings, because a literature review is
about what researchers have learned about a topic.
,_,..--------- I 2
Business and Staffing
Strategies
Outline
Starbucks's Staffing Strategy
A Resource-Based View of the Firm
What Is the Resource-Based View of the Firm?
Requirements of a Competitive Advantage

4. The Firm's Business Strategy
Types of Business Strategies
Making Changes 10 the Firm's Business Strategy- and Staffing
How the Organizational Life Cycle Affects Staffing
The Firm's Talent Philosophy
Filling Vacancies or Hiring for Long-Term Careers
The Firm's Commitment to Di versity
Applicants and Em ployees as Either Assets or In vestors
Develop Your Skills: Measuring Your Firm's Climate for
Diversity
The Firm's Commitment 10 Ethical Behavior
Deriving the Firm's Staffing Strategy
The Firm's Strategic Staffing Decisions
Should We Establish a Core or Flexible Work force?
Should Our Talent Focus Be Internal or External?
Should We Hire People wi th the Skills We Need or Train Them
to Develop Those Skills?
Should Talent Be Replaced or Reta ined?
Which Skills and What Level of Them Should We Seek?
Should We Pursue Proactive or Reacti ve Staffing?
Which Jobs Should We Focus On?
ls Staffing an Investment or a Cost?
Should Our Staffi ng Funct.ion Be CenLralized or
Decentralized?
Achieving a Competitive Talent Advantage
Starbucks's Staffing Strategy
Summary
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Explain how different staffi ng sLrategies support different

5. business strategies.
Describe the resource-based view of the fim1 and how staffing
can contribute 10 a compan y's sustainable
competitive advantage.
Explai n when an organization would use talent-ori ented rather
than job-oriented staffing .
.t Describe hu man capital ad vantage and human process
advantage and the di ffere nces between the m.
Describe the strategic staffing decisions any organization must
make.
21
Starbu,ks's Staffing Strategy
uum coir«' romp.in) namcJ Jfic r thr fir')t ma1c 111 licrn,an
Mch , ,
SWN<., th< S<Jt~<-b.b<J prrn n 1990 to ow I()() um<> Lhat
number today S<>A lit •
. ;inJtJ tNm Ju,1 SJ )lore'- i r, h h h .... uUckl'
,,.._.,,, Ohl hl.) e,r n d . dcpcnd) on 1hc inn inng t c ng t
cmploycc-s 1
:it,dit, hJ s:ct h1g.h pm, ·, h)t 11' CJ ~ Rn~;ung its rocus on its
rmplO) ccs. Starbucks rd able lo
pro, ,J.: tuih--quJ.hL) ru.sh,mc-r ~•n IC'C' c
11 115
hu mln rc~ouri;.-c functton "Partner Resources c~ lo '1l
.. Starbud.s c,cn ca .) I - .

6. c-mplo~«-' :u -p.u111m Ir :u St urbuekS I ) 10 ctc,l·lop
cn1hw)1.ci11cal y sauslu:d customers. Mort
oolh<r ~ ,J,ns pnoop . d th;t e,pcncnrc i, completely dependent
on the pan U...
'" /Te,:. 5urt,u,.s sells anexpcncn~ around the or ld e,ery
day.~ The challenge facings'::~~
J ,,r 30 m,lhon customc _,·r, d --.. ~' an -.cf'C O . .
1
th ~tciY 15 10 find enough qu.u1 1c and desirable ,......,.
e; ts ~" • <loba !!IO" . h A . Pa --.. ,<biq
:,; tl ""."u_ ' urrcnt US ·"oMorce anJ double ,1, " oMorrc tn I c
Sta c1fic regi0n by 2017J
,.., incrca)C us c nds on the i;k:Jll.s lltlll pc~onahucs of 1Ls
people. 1t 1s a daunting challenge t ·
s,---,u,c Surbucl.s dq,<11 'and staff us global "oMor<'C. As Jim
Donald. Starbucks"s pre, Or I
to ronu~uc to success!: ~~~c compcuuon . ahhough I rc~pcct it
_ If s hnvrng a robust pipc.b~
,1J1cs. M) biggesi ~ h
I
rrs "ho" ,11 also be able to tai.c their next steps wi th the
compan ~
r--oplc: to open and m1r1agc t c s o h d I . . y
How can Starbud.s use staffing 10 pursue its grov.t Mratcgy an
mrun arn its com petitive adYlr).
l ·c., hat llnd of ~tafling s1r.iteg) v.ould you re,commcnd
Starbucks puniue to help it continue to
i! lhe nght people? After n:ading this chapter. you should hove
,omc good Ideas to share With ~

7. compan) -
Wh ) docs one company succeed and another company fa,I?
Mosl people believe a company rnust
focus on its strategte. financial. and 1cchnolog1cal capab11tucs
to com"':tc successfully. We oo,,
lnow th3t these ,mp<Jnant eapab,lt tics muSI be supple mented
wi th orgamzauonal capabilities 8.,,_
crated by ottraeting. relJlining. mouva1ing. and de, eloping
talc~1cd empl?yces. Therefore, slaffiog
plai s 3 central role in creating and enhancing any organ1zauon
s compc uu vc advantage. As S1t1t
Ballmer. the CEO ofM,crosof1. s,ud. ··You may base a
technology or a prod uct that gives YOU •
edge. but your people dc1cnnine "hethcr you de, clop the next
wmning technology or Product. -i
Organwmons that pUISUC c!Jffcrent compcuti, e >tratcgies req
uire different staffing s1ratcgies
to c.,ccutc them. For example, companies li ke Pruete r &
Gamble. wh ich mus1 continually inll'Oduct
new and improved product< hkc mul1,bladc razors and 1ooth-
wh11cning 1001hpas1e 10 stay compeo.
u,e. need 10 fos1ercreativuy and nsk talung among ccnain
employees. By contrast, companies that
focus on dclivcnng the best qualuy or value to cuslOmcrs need
to foc us more on operations and
,mpro,1ng Lhcir Ork processes to red uce costs and improve
product quality. These companies-.
more ltkcly to need team pl ayers " ho nre trainable and able 10
fo ll ow slandardizcd procedure~
Acquin ng. deve loping. and retaining the right talcnl helps
businesses create 1he organiza.
uonal capability and intellectual capital driv ing their strategy
execution. This potential is 11cll

8. kno11 n by companies such as lime, Inc .. 1he world 's larges,
maga£inc publisher. Kerry Bcsiey,
limc' s sent or ,ice president of human resources (HR), states, "
HR' s missio n is building capabil-
uy for lime's business ... . Our executives ,•icw us as
management panncrs because we recognuc
this business is about lalen1- i1's what drives the quality of
products 1ha1 connect to readcn.,.
At QVC. business strategics are so closely aligned wi1h s1amng
strategy 1ha1 every project i.
capital plan has an accompanying talenl plan.7
Tlus chapter first describes the resource-based v,cw of 1hc firm
and then explains ho11 lhc
busmcss s1ra1cgy and compcuuvc advantage of a !inn affect its
s1afli ng needs . We describe -.ha
"< mean by an organization's ··1a1en1 philosophy" and discuss
how 1alcn1 philosophies in0ucnct
human resource strategy and staffi ng s1ra1egy. We al so
discuss nine stralcgic staffing decisilllll
all !inns musi make. After reading this chapter. you should
understand the role slafling plays lll
tenns of creaung and sustai · · · d ff ntng a compc t1t1vc
advan1acc for the li m1 as ii ancmpls 10 cxccull
1 erent types of business s1ratcg,cs. -
A RESOURCE-BASED VIEW OF THE FIRM
Most organizations recognize that I b
tee success. Success
II
d a arge udgct and , 1a1c-of-1hc-ar1 facilities do not guW·
resource-based view;;~ y fi cpcnds ~n employees· moti vation,.
compe te ncies, and skill s. Th<

9. can hel p u create a sustai: ~rm dcsc~bcs how employees' mott
vauon,. compe1cncies, and skills
e compc1t1, vc advantage.
Chaplcr 2 • Bu~1ncss a.nd St3fling StrJtcg1c.~ 23
What Is t he Resource-Based Vi ew of t he f irm7
TltC resource-based ,•icw or lhe firm proposes th at a
company's rc,ources and compctcnc,es
cnn rroc1ucc a su~tamcd compctll1vc advantage by creating
,alue for custome rs by lov.c n ng
, o,LS. pro 1dmg ~omc1h1.ng o r unique value. or so me
cornbma11o n of the 1,,0.8 To create value,
th~ hinn£ progranb. pohc ics. and practtccs of an organ 1ta11on
must either lo"cr the costs o f the
ort;unuouon' s products or services, enhance the d1ffcrc nt
ia11on of the organi tation·s products
or ,er, ,ccs in the eye, _of cu,tomcrs. or both. To the c,1cn1 that
staffing mnucnces who has
ihe opp<>nun,ty anJ de,'.:• to _pursue an employment rclau
onsh,p with the orga ni,.ation. stafiing
scr'CS as a "gatc~ecpcr by mnue ncmg 1he le,cl and composi
uon of an o rgani,auon' s talent.
In shon. the re source-based view of lhe !inn focuses attention
on the quality of the skills of a
company' s ~rkforce nt van ous levels, and on the qual ity of
the mott vational cli mate created by
m.:in3£C l11COI.
Requirement s of a Compet itive Advant.age
Jay Barney. a professor and bus iness strategy expcn. has
identtficd the li,•e cri teri a (shown in

10. Tnblc 2- 1) thnt a resource must meet to provide an
organi,.ation with a s ustainable competi-
tive odvantagc.10 Research shows that resources such as a firm'
s emp loyees meet the cri teria
when they add value to the !inn, arc rare, cannot be imitated,
and connot easily be substitu ted
wilh other things. The company must also be orga nized in a
way that enables 1hc resource to be
c,pl0t tcd.' ' Com panies cannot necessari ly replicate ono1hcr
firm's capabili ties j us1 by 1mi1a1ing
the compc1i1or's human resource practices. Thus, good human
resource management is valued
not only for ils ability to implemem a given compctiu ve
strategy but also for its abili ty lo ge11er-
att strategic capabilities fo r the lirm. ' 2
THE RESOURCE MUST BE VALUABLE Starling activi ties
can create value for a firm in that
they can help it to cxplo11 opponuni1ics and/or neutralize
threats. The return on staffi ng inve, 1-
mcnts and the rete ntion and performance of em ployees can be
increased by rigorously evaluat-
ing the effective ness of various staffing practices and targeting
staffing activi ties 10 1dc n1ify
and attract 1hc bcsl lypcs of applicants for the organization's
needs. Providi ng applicants with
reahsuc infomiation about the job and organization can also
help reduce employee turnover, cut
o, crall labor costs , and improve lhe lim1's produciivity.13
Hiring people who do a belier JOb for
the same pay is also a way 1ha1 s1afling invcsuncnts can create
value.
The po1cnttal of strnicgic staffing 10 create value and a sustai
nable compc1i1ivc advantage
for an orga niza1ion has been recognized by invcsto~ as well.

11. An Ernst & Young study fo und that
inslllutional ,n vcstors' decisions 10 buy a company"s stock arc
based in par! on the company' s
abi lity to attract talent. Because the quality of a company' s
s1afling practices can diffcrcnti-
a1c i1 10 in,cstors,14 staffing appca~ 10 meet the value requ
irement of creating a competitive
advantage.
R£SOURCF.-8 AS£0 //£ IV OF Tl/£
FIR.II
pn,pouf 1'1at a comp<m; f rrwur r t
and '""'fH''"""t '"" product' u
rustmntd ,omp,11111 r 1ulwnwsr
by ararmg ,oJ,u /nr c111tumt'ff by
"'"' um~ (OSIS, proi 111mg fOtllt'llu,ig
of ~mqut' ,alut', or JtJmt' ('(mtbmauon
oftl1t tll
THE RESOURCE MUST BE RARE Value creation alone is not
enough to produce a sustamablc
compctt1ivc advantage. For a company 10 outperform
compclllors, 11s s taffing practices musl
also result in a set of workforce a11ribu1cs 1ha1 arc rare. The
ability 10 idcnufy and attract rare
tale nt varies acro,s organizations. For example, some organi
zauons, such as Google and 1hc
"archousc club Cosico, arc able 10 hire and retain the best talcnl
at a greater rate than their
compctllors. S1ra1egic staffing practices arc what allow ftm1s
such as these 10 mecl the rarity

12. -
Requirements a Resource Must M ee t t o Give a Firm a Com
petitive
Advantag e
1. The resource must be valuable to the firm by explo1t1ng
opponun1t1es and/or neutralizing
threats 1n an org anization's environment .
2 . The resource must be ra re among the comp any's current and
future com pet1t1on
3. The resource must not be e asily imitated by other forms.
4 . The resource must not be easily substituted or replaced w,1 h
another resource
S. The company must be organized to be able to e>p lo, r the
resource
24 Clupu-r 1 • 81.b1n.., , ll'IJ S1lffin~ s rr.uep~
- . m 1111,c ad, anmgc. '5 They have the potential to create or
BUSl. 'ESS STRA TEGI'
how a r tJIN/)(Jn) 1111/ rom~lt m 1t1
m11r(r 1p/ace
requ1rern,·n1 for gammg a co ~ n. ,~le than their compe titors,
and that exhi bit supc . gan,14.
uon, tbJt JI' more intdhgent an I,, t6 no, lc,c)i
d n.•rformance as " ell. of ,-o.,pcrauo n an r
NOT BE EASILY IMITATED If an ~rganizati on ' s strategic
Slaffin

13. TIIE RESOUR~ MUST . bv
3
compcutor, the organ11a11on s resul11ng talent will not be J
Pile.
uccs can be c.istl) cop1td . But the fact ts that thtS ts not always
easy lo do • tsullct
f th. 1:u •nt of us compcmors. · " finn• rorn ' ' . art detcrmmcd
by the unique. or rare, talent a1tributcs a . 1
, 1:1.11ing competencies ared th. m ~rm:s ab1li1y to identify
stafllng practices that conlribu/ ailabJc
tn the l:,bor mar~et an e ' t I d . c to lhc
. f tlu . , L Ho" cver the competencies arc a so uc, tn pan. to the
comp
acqu1smon o , twe n · · , ks ( h ti I · ¾y's
d
. 1 1 aonshtps and us recruttmg nc111or sue as 1e re auonshj .
decplv mgrame socta re a "d · · h P 11 ~
· rs and the communtly that can pro v, e 11 w11 candidates) as
.. , U
with 11, employees. cus1ome .
1
. "e '1
us long-sllllldtng relationships with us Ullent sources, such as
emp oymcnt age ncies, uni versiucs,
and professional recruiters. .
. . . ,que history and resulung repu1a110n and culture can also
inn An organ1zauon s un . 11 . . ucncc
. . b i·u·es 10 copy an organization's staffi ng pracuces. Imagmc

14. 1f an establ" •·· compeUtors a t t . .
1
·•- . ts,..,
h hi re·pcctcd for its mtegrny and commumly pht anuu opy
simply passed out 1. ..
company 1g Y ' W , Hi · 1"' d "d d I ""'1·
ness cards at a communuy funcuon 1ha1 read. " c re nng_- ~n
prov1 e . an nterne t ad~
for people 10 go IO for funher information. The organw111on
1s ltkcly to ~cce1ve a rnorc favorable
response IO such a recruiting imtiau'"e than 11oukl a stan-up
comp:1°y w uh illlle visibility and no
repuiaaon. In other words, companies that U)' the same staffi ng
mniauvc may not experience thc
same response. To the extent that many interrelated facto~
contnbutc to the success of an orga.
nizauon·s staffing effort, it '"II be d1fficuh for a co_mpe111or
lo cop~ all of them exactly. ThllS,
staffing meets the inimi1abili1y requirement for providing a
compcllt1 vc advantage.
TIIE RESOURCE MUST NOT IE EASILY SUBSTITUTED A
staffing practice should have minilllll
subsututability. In other words. for it to provide a co mpetitive
advantage, there can be no good
substilute for it. 18 If one company successfully recruits
students via e-mail from a uni vcnny
Imo" n for its 1cchnological capabilities but a competitor can
effectively reach the same studen~
by handing out rccruiung brochures to them on campus, then
neither company will cxpcncnce
a staffing advantage relauve 10 the other. Similarly, if a compe
titor can find a substitute for the
type of talent another organizauon has acquired, neither

15. organi,.ation wi ll realize a compctitiie
adv:,n tage. Technology is also un likely to serve as a substi
tute for the talents employees contrib-
ute. Why? Because no machine can duplicate the intelligence, j
udgment , and innovation human
beings arc able to bri ng to their jobs. Thus, superior staffing
meets the competitive advan1.1ge
criteria of nonsubstt1u1J1bili1y as weli. 19
TIIE COMPANY MUST BE ORGANIZED TO EXPLOIT THE
RESOURCE For talent lo be a sowtt
of a sustai ned competitive advantage, a comp:,ny must be
organized 10 take full advantage of the
value-creati ng, ran: , and inimitable talent it employs_lO For
exa mple, if a fim1' s human rcsourci
activities-its rccruiunen~ selection, compensation. and training
systems-arc di sorganized ti'
inconsistent with one another. the firm won't be ab le 10 fully
leverage its talent. To illustrate.sup-
pose an organization is able to recrui t and select the top
candidates it is pursuing but can offer them
only a bel ~w-marke t rate of pay. If this is the case, it is unl
ikely the finn will be able to hire or rclllln
them de spue the success of its recruiting and selection
functions. Likewise, if an orga nization suc-
cessfully hues lower-skilled people with the intention of
training them in the necessary job skills
but the 1m1rung program is poor the O • • , be . . . . ,, , , ,
rgamzauon won I lully able 10 capualt zc on 11s euecme
staffino sys tem This is why a r. • , . rr. · ' 0
• ,,rm s S1411tng pracuccs have 10 be integrated wi th the
company s
human resource and othe r fu nctions II be . . . .. . as we as
cons1s1cn1 with us poltc1cs and pracuces.

16. THE FIRM'S BUSINESS STRATEGY
A company's business strategy d fi h . 21
strategy should ,cncct what the e i~es . 0~ the firm will compete
in its marketplace. The
the ftrm can cost-effcctiv I d 1· orgamza11on s customers wan
t. what the finn wants, and what
e Y e 11•cr. Busin ess strat · 1·k • I · J bus1· ness units in a
divenified c . egies arc 1 ·cly to differ across mu lip c
fcrcnt strategic approache s ~rporauon. Procter & Gamble, IB
M, and General Electric take dif-
o ensure the success of th · · 111- · elves making different
choices abo h" cir various business lines. 1s inv
ut w tch products and services to offer, and which strategies 10
Chapter 2 • Business and Staffing Stra1cg1cs
pursue 10 gain a competlli~e advantage. Both, of course. will
hinge on a company's capabilities.
stre ngths, and weaknesses in relation to tis compcutors. In
other words, for a company to execute
25
11s business ;iratcgy. not only ~US! its hum an resource
management policies and prac1tccs fit
Ith 11s strat egy. but_also ns_busmcss strategy must 5,<1uarc
with the ftrm 's competiti ve environ-
ment and 1he imm~dtate busm_ess _co~dit1 ons II foccs.2-
Bccause ti 1s an organtzauon s people who arc responsible for
gaining and keeping a
competitive advantage, hiring and retaining the right people arc
critical to business strategy

17. execution. Researchers Michael Treacy and Fred Wiersma have
identified many sources of compel·
,u,e advantage, including having the best-made or cheapest
product, providing the best level of cus-
tonicr service, being more conveni~nt to buy from. having
shorter product development times, :,nd
having a well-known brand narne.23 Warehouse retailer Costco·
s strong and loyal custome r base,
at'CCSS to a broad range of high-quality products for a low
price. and commillcd employees give it a
competitive advantage over smaller and lesser-known retailers.
Although Costco pays us employees
, ubstantially more than its closest competitor, Sam's Club, it
has similar financial returns on its labor
cost> due to lower turnover and higher le vels of employee
productivity.2' This. in tum, results in
a bet1cr-qualified workforce and a higher-quality customer
experience. According to management
°'pert Michael Porter, to have a competitive advantage, a
company must ultimately be able to give
customers superior ra/11tfor tlteir money (a combination of
quality. service, and acceptable pricc)-
a belier product that is worth a premium price or a good product
at a lower price can both be a source
of compcutivc advantagc.25 Table 2-2 lists some possible
sources of competitive advantage.
Types of Business Strategies
A company can create val ue based on price, technological
leadership, customer service, or some
combination of these and other factors. Its business strategy not
only involves the issue of how 10
compete but also encompasses the following:
l11e strategics of different functional areas in the firm

18. • How changing industry cond itions, such as deregulation,
product market maturi ty. and
changing customer demographi cs, wi ll be addressed
• How 1hc finn as a whole will address the range of strategic
issues and choices it faces
Business strateg ics arc partially planned and partially reactive
to changing circumstances.
A large number of possible strategies exist for any organization.
and an organization may pursue
dilfcre nt strategics in different business units. Companies may
also pursue more than one strategy
at a panicular time. Porter proposes that a business can compete
successfull y by being the chcap-
c>t producer, by making unique products valued by consumers,
or by applying its expertise in a
narrow market segment to meet that segment' s particular
product or service needs.26 Companies
can also make a strategic choice to grow the business. Next. we
di scuss each of these strategics
and their implications for what is required of the staffing
function.
A COST-LEADERSHIP STRATEGY Finns pursuin g a cost-
leadership strategy strive to be the
lowest-cost producer in an industry for a panicular level of
product quality. These busi nesses
arc typically good at desig ning products that can be
manufactured efficiently (e.g., designing
products with a minimum number of parts needing assembly)
and at engineering efficient manu-
facturing and distribution processes to keep prod uction costs
and customer prices low, Wal mart
ts a good example of a lirm pursuing a cost-leadership s1ratcgy.

19. it:ijff j Sources of a Competitive Advantage
Innovation: develop new products, services, and markets and
improving current o nes
Cost: be the lowest-cost provider
Service: provide the best custome r support before, dunng, or
afte r the sale
Quality: provide the highest-quality product or service
Branding: develop the most positive image
Distribution: dom inate d istribution channels to block
compet1t1on
Spe ed: excel at getting you r product or service to consumers
quickly
Convenience: be the easiest fo r customers to do business with
First to market: introduce products and services before
competitors
COST-LE,/)£RS/IIP STRATEGY
bt l ht IOI f j l -COSI producer fur a
particular ltt'l ufproducr q1-Wl11y
26 C"h;ap(cr .. • Bu."1rte", .mJ Suffin~ StrJl(1:1C" ,.
- • 3
cosl- l<Jdcr<h1p , 1r:11cgy ,ocus on keeping c
B,-cau>< Ofl'On11JUOn, pur..u 1ng npc1iuve ad1an1age based
on operational e• <>sts '!Id
h 10 dc1 clop a COi •<cu,
onllAT/0 t L £. CUIL CE pr1C<', low. 1 C) lry d tify ond fo
llow eflic1en1 processes and engage in nrt
Emplo1«:s ,n the« finn, need
10 ', cn

20. 1
n n• and 1tan,pona11on companies frequently .. ~~ba.,_
_,""'°'-'..,,:a.""",•• · . 1.,., ~bnu, ac u o -..pi ••· ..,..,..,.._..,.,.,..,_
,.,,, ~.,._,., ou, 1mpro1cm,n1 pr.ic 1 > ally look for " ays 10
reduce their cost.s and lo ""'
Toe "'3n11auon< conunu , II lier ,1...
P""" .. -...-:, "'"' opproach. .,., "·• 1 roduct thol compc1cs
success,u y with
compctiiors• "'II
pnccs "h,le offcnng 3 des,ro~ ~ fv Jmart arc cood ex3mples of
companies whose co Pltld.
DIFFERE.TUnO.' STIUTEGI
d.rrrl1Jf'Ult a prodllCt or J<nlet thal
lta.J ~, clwrorttnsna 1al.urd bl
PROot ·cr I Ol~ T/0.'
t1e, rl11pvtg nr. prudJJcn or lrn 1ctJ
ucts Dell Compu1cr... FedEx. an • - lllJ>cho,-,
based opcrouonal « ccllcncc .
achantag< is on i perouonal excellence 3nl 1roonablc and ne
xible cm 1
Mos1 finns ,in, ong or
O
I
nn producuon obJcc1hes, avoid was1e, a nd lower it 0>its

21. "ho are able 10 focus on shoner- :11 hmnc emplo)CCS "ho have
high salary ex pcc,. ,~ ~
· producuon com As a n:s · - h · ~-ollt
pan) s bi° 27 Because organoinu ons pursuing t ts , 1ro1egy
operate With ~
no1 neccs7i~n:;~•;:1y ~ion: on work icams. ii is nol as hel_pful
lo pay the high price rcqub&Jl
margins an The ium on this 1n,es1men1 ,s not high enough, and
the resulon lfld
to attr3CI top ukn1 I re can hinder thcor effcc uve ieamwork.
Instead, lhe s1amng g Ply
do<panl) among emp
0>_ccs produc uon workforce arc likely 10 include hiring pcopl
g~
for such an organ,zauon score ·11 c ~bo
fr, . ·cn1ed learn onc
n1ed. vainabl e, and II mg to fo llow s1anda,d
are adaptable , c 1c1ency on · • lltd
proccdun:s
A DIFfEIIENTIATION STRATEGY When a_finn pursues a
difTerenliallon strategy it auempu
10 de-clop produc1s or services that have unique charac1en
s11cs valued by c ustomers-prodlJCb
and scn ,ccs for which ihe firm may be ab le lo charge a prc
m,~m pncc. The dimensions aloag
which a frnn can d1ffen:n11a1e include 1he ,mage of lhe firm s

22. produc1s (Roi ex wa1ches.,..
an «ample ). produci durobollly (Caner's childn:ns clo1h1ng),
qual 11y (Lexus automobilcsk
safely (the Voh o brand name), and usab1i11y (Apple
Computers). As we. ~eniioned ~-
lier. companoes can pursue mon: 1han one Slfalegy al a 11me.
Sou th"_cst Airlines is both 1
cost leader and 3 d,ffercni,a1or. In add11ion 10 being a low-
cosl, no-fnlls airline, Soulh•·eii
Au-lines diffcrenuaics Ilse If from i1s compcti1ors by crea1ing
an unconvc niional atmosphere fct
cus1omcrs.
ari,ano a tions pursuing a d1ffcrcn11a1ion s1r:11 egy oflen lfy
to develop a compe titive adl'll-
1.lge based on product innol'Otion. Thos requires employees to
conl inu all y develop new prod.
uclS and se rvices 10 cn:a1e an organization's advantage on the
marke t. These companies Cl?ltt
and maml.lin an environment tha1 encourages employees to
bring ne w ideas inio lhe company
These companoes 1hen ils1cn 10 and consider these ideas.
however unconventional 1hcy rru,i.
be. For these companies. the fn:q uenl inltoduction of new
products is key to slaying compa,.
u,e. Thos S1ta1egy is comm on m technology and

23. pharrnaceu1ical companies. Johnson & JoMS01,
Nike. and 3M arc good examples of organiza1ions whose
competitive advantage is based on
producl innovation.
Produc1 1nnova1ors mus1 pro1ec1 their cn1tcpreneurial
corporate c ulture. To that end, thq
=ruiL hon:, and tram employees 10 fit the ir mnovauve culture.
Thal means thal instead o(
sclec1ing Job candida1c, based only on their rela1ed
experience, they also assess whe1hcr 1
cand1da1e can " 'Ork cooperoti"clY in learns and wheiher she
or he is ope n-minded and crr-
aii,e.28 An organowuon "1th a producl innovation competi li ve
advantage would likely seek
a core " orkforcc of research and dc'elopmcnt employees who
have an entrepre neurial miDd-
seL longcr-1crm focus, high 1olcrancc for ambigui ty, and a n
interes t in learning and diSCOCI)'.
Employees "ho need stab1l11y and pred,ctab, lily would not lit
in as we ll. Individuals able to
so fl lhrough Ja,gc amo unlS of information to iden1ify ideas
1hat lead 10 ne w products or services
"ould also be Yaluablc to innova1ivc compan ies. For example,
P&G, which relics on innova-
uon 10 crea1~ new product.s and de,elop new ma,kets, looks for
c urious. creati ve people "ho
work "•11 with others and 14 elcomc changc.

24. 19 Forms pu rs uing a differentiation strategy b3Std
on _,nno~auon would likely make greater invcs1mcn1S in 1hci r
hu man reso urces and focw 00
hmng highly slollcd workers 'or k h • - . ·
cos1-leadersh1p s1tatcgy JO
" ey resc3rc poso l1ons compa,ed 10 compa nies pursuing I
Being first 10 ma,le1 with the be I od · · · rod·~ . s new pr ucis
1s usuall y the highest pnonty of p ,.,
,nno,a1ors . As a resuh cos1 is les f b . '
key resea h d d · 1 s O a amer 14 hcn II comes 10 acquiring top
talent for the finn s
re an eve opmen1 pos( I d . . 1 ions. n 1v1dual contributi ons
arc imponant for 1h1s l}JIC
ChJplcr .2 • Busmos and Staffing Strategics
of organ11a1oon Consequcnlly, new hrrcs "ho arc mo11va1cd
by pay-for-performance , y,1cm,
and "ho acce pl ihal pay dospan ucs will ~xr,1 among employees
depending upon 1heor con1nhu-
27
uons 10 new product de,•elopment an: likely lo be good
crnplo)•ees. Innovauvc organization<
3
1,0 n,•cd employees wllh
3 wider range of ap111udes and ab1l111es 1han do
organ11a11ons pursuing

25. lo"-cosl str:1tcg1e.1 m relau vcly s1able markets.JI
,. SPECIALIZATION STRATEGY Busr ncssc, pur,uing a
specialization strategy focus on a
narrow markcl scgmenl or niche-a single product. a pan,cular
end use, or bu) ers w11h spe-
<1al needs-and pursue either a diffcrenuauon or cos1-Jeadersh,p
str31egy wi1hin 1h01 marke1
segment Successful busmesses following a spcc1al,st strategy
know the ir marke1 scgmenl very
"ell. and oflen cnJoy a high degree of cus1omer loyally. nus
strolcgy can be success ful if ,1
rtsulls in either lower costs thun compe1i1ors serv ing the same
niche or an ab1l11y IO offer cus-
iomers something 01hcr compc1i1ors canno1. say, nons1andard
producl5 and pans, for example
spons clo1h1ng relaoler Under Armour, cycwcar company
Luxou,ca Group, and 1oymakcr LEGO
an: c., amples of companies pursuing a spcc1alr,a11on stra1egy.
Organi zations pursuing a specialization stra1egy of1cn try 10
develop a compeuu,e advan-
iagc based on customer intimacy and lry 10 deliver unique and
customizable produclS or ser-
vices 10 meet their customers' needs and increase their loyally.
This approach involves divoding

26. ma,kcls into segments or niches and then tailoring the
company's offcnngs 10 mecl the demands
of those niches. Creating customer loyally n:qu,res cmplo)ces
10 have opcrouonaJ nexobilrty
as well as detaoled knowledge about "hat their customers want
so they can m pond quickly to
mecl thcrr needs, from customi zing products 10 fulfrll1ng
special rcquesis. Consulung, retail, and
banking organizations oflen pursue customer intimacy
slfalcgics. High-end relllilcr Nordstrom
,s kno"n for the high-qualrty customer service II provides
customers. Employees m primary
con1ac1 with cuslomcrs would lrkcly receive pan icular sufling
a11cnt1on due 10 therr key role ,n
ob1aimng cuslomer intimacy.
Mosl service-quality expens say 1ha1 hin ng is no1 only the
first bu1 also the most eriti•
cal slep on burlding a cuslome r-oriented company.32 Hiring ac
1i vc learners with good cus-
1ome r relalions skills and cmo1ional resilience under pressure
would complement a firm 's
cus1omcr in1 imacy compe1111ve advantage. h would also help
ensun: 1hat the organizauon
conunually enhances Hs ability lo deli ver on promi ses 10

27. customers_l3 Employee coopcra-
uon and collaborauon arc importanl 10 developing cus1omer
inlimacy, so firms pursuing 1his
siratcgy should foc us on idenlifying and a11rac1ing adap1able
team players with good people
skill s.
Starbuc ks 1s an example of a lim1 1hat pursues thi s s1ro1egy.
The co mpany is able 10
command a high price for a c up of coffee because it focuses on
its relationship with custom-
ers. But imagi ne if Starbucks replaced its work force with
cheaper labor, including people
who don'I enjoy in1crac1ing with customers or people or who
have weak communication
, kill <. Soon Starbucks' s competilivc advan1age "ould begin
10 erode, and its brand ould
lose 11, luster. Quickly Starbuc ks would h3'C to reduce the
price of iis coffee to keep cuslom-
ers coming bac k. Even1ually, Sta,bucks could find itself
pursuing a cos1-lcadership strategy
ra1her 1ha n a speciahzali on strategy because it failed to
recruit and hire the righl types of
people.
A GROWTH STRATEGY A growth slralegy involves expanding

28. tl1c company 10 either increase
1hc fi rm sales or allow the company 10 achie,c economics of
scale. The success of a grow1h
s1talegy depends on 1he firm 's abili1y to find and retain the
righ t number and types of employ-
ees 10 su>tain its intended growth. The growth can be orga11
ic, happening as the organization
expands fro m within by opening new faclories or stores. If 11
is, it requires an invcstmen1 in
recru111ng. sclec1ing, and training the right people lo expand
the company's operations. This is
what Sta,bucks has had 10 do as ii rcgu la,ly opens new stores.
Fi rms can also pursue gro" th stralegies through mergers and
acqo,isirions. Mergers and
acqui,i1ions have been a common way for organi,ations 10
achieve £rOwth and expand intcrna-
llonally. In addi1ion 10 expanding 1hc organi zati on's business,
mergers and acq uisi11 ons can al<o
be a way for an organization to acquire the qual11y and amount
of talent ii needs 10 execute it<
bu>1ncss strategy.
Sl'F.CIALJZA T/0,V STRA TF.GY
Joc 11w1g cm a ,w,rm, nw,lr1 u ~mrnl
or mch, and punumg r11f1u a

29. diflru n11a r1on o r m11-ltudrr1l11p
ffmr,gy t1th111 thm 11uul.L1 ugm,nl
CUST0.11F.R I NTI.IUCY
drl11rn11g umqurund cu1t,m11whlr
produeu or srn i<r.r that bnru
mu, cwromus ' nttdJ and incrra.u
,w,omu IO)alry
GROIVT/1 STRA TEGI"
"ttratrgy to rrpwtd tht comfHJn>
r 1thu organically or, 1a acqunuwnJ
28 ChJrtct c • Bu, 1°'~ !l/W Suffing. StrJIC'~tC"'-
. eoniz auon "hose grow1h ,1ra1cgy requ ires II lo hire lho
For « ompk . an or. ,
1 0 0
,cchnolo~y consul11ng spcc1alts1s may s ,_ 11.!ands
I n.•nenr cd 1n1orm3 , • ee, lo of •dd111on• c, ,. d lo)'S ih,s ial
cnl h 1s not unu sua l for or•an· le.
"' ihoi alrco , cmp e izat1on qum, • compa ,
1 1
for thei r 1alcnl and sub,eque n1l y J1sco n1inuc lh s I<)
acquire Nh<r compan1e< so e l ,n1 11JII) in. Fas1 gro" ,ng
iechnology companies Ge b114,,
th, a •qu,reJ company "°' h an.,. ness < ' f I bu) , iart-ups 10

30. acquire I c ir engineers and fo u ,1• ··,.., FaccbooL ond Z) nea
requcnl ) """rs '"' • ·oJ u Emplo)CC> ,n redundant pos111ons or
in Jobs not need db ..,.
1hcn Jc1L1>on ihrn pr uCIS. ncd or kl go ond ihc 1arge1cd la
lcni is incorporalcde Ylht
cr~ed orclntllUOn :ire rrlbStg into ,1...
m • • . k Assuming ihe mgc1ed talen1 sta) s wuh 1he merged O
.., ocqu,nng compon, s ran s ff d rgan14
uon which ,s nol ~uaran1ced. 1h1s s1ra1cgy can be e ccu, c in
c,pan mg an organi za1100•
,ale ~I ba,c. 11 ,s ,;pl'rtanl 10 co nsider 1he ma1ch bcl Cen_
organ1za11 o nal cu ltures, '•l11e 1
1alc n1 ph,lo<ophy. and human resource pracuccs when using
mergers and acquis11ion1 ~
3
" "Y 10 ,mpl<mcnt a gro lh siraieg) . M1sma1chc s bclccn
merged or_ ~cquJTed organ,.
,auon, can rc,u ll ,n lhc loss of 1alcn1cd cmplo)ce, . M~rgers
and ac qu1s 111ons o ften fl!]
becou,c of people issues rather 1han 1echn1 cal or r:nancial iss
ue s. For example, a cuhurt
clas h prc,cn1eJ the DaimlcrChrysle{i AOUT1mc arncr. and
Sprint/Ncx1el mergers froa,
ac h1cv1ng the an11c1pa1ed synergies.
Table 2_3 ,llu>1rates lhc , iaffing ,mpltcauon, of the different
sou rces of compctihit
ad, ant:igc
•tli•fJj Staffing Implications of the Different Sources of
Competitive Advantage
Sourc-e of Comp~• Adv•ntage Description St,ffing Implications

31. Operaoona/ E.<cell~ce (low Cos:) • FOC1Js IS on the efficient
production and • Efficiency focus
delivery of ptoduru and/or services
-
Product l eadersh ip VMovaoon/
Customer /nomacy /Custom,zaoon)
Growth
• ObJectJve " to lead industry in both
pnce and conveni ence
• Provide a continuous stream of new
cutt,ng-edge ptoduru and serv,ces
• Objective 1s the fa st commerc1a l1 zat1on
of new ideas
• Tailor and shape produru and seNices
10 hi each customers needs
• Adaptable
• Tra inable
• W1ll1ng to follow standard ized
procedures
• Top research talent
• Entrepreneurial m ind -set
• Creat1v1ty

32. • Hig h tolerance fo r ambiguity
• Interested 1n and motivated by
learning and discovery
• Adaptab le
• learning oriented
• Objective IS long-term customer loya lty • Networking skills
and long-term cuS1omer prof11ab111ty
• Expand the company to either increase
th e firm's sales or allow the company to
achieve economies of scale
----
• Customer relations skills
• Emotio nal res1l1ence
• Fit vmh company culture
• Future onented
• Flexi ble (w1ll1ng to assume
multiple role s)
• Willing to take controlled risks
Ch::iptcr 2 • Uu~iness and Staffing St ratcg1e1,
M,kin9 Changes to the Firm's Business Str;itegy-.and St;iffing
s ir.iicg) 11nplcmcn1a11on and s1ra1cg1c change n,quirc large-

33. scale organ11a1ional changes. one of
,he largeSI of h1ch may be lhc na1ure of Lhe competencies.
values. and cxpcnc nces required of
cmploiccs Depending on lhc nal ure of a straicgic change. some
employees arc hkely 10 lac k 1he
"'"'"6ne,s or e,cn 1he ability to support lhc new stra1egy.
Targeting 1hc s1affing effort 10 hire
people "ho " 111 be wi lling and able lo implemenl a new
strategy may help 1he stra1egy 10 take
holJ and ul11ma1cly innuencc 11s cffecuvencss.
Imagine an organi,.auon currently manufac1unng ,cm,conductor
chips The eompeuuve
environment I) such thal the organin111on mus1 compe1c on
cost. The organ11aLion is focused on
opcmuonal efficiencies 10 con1rol expenses. and tries 10 hire
lhc bc1t labor II can al Ille lowcs1
" aces possible. lls focus 1s on keeping hiring and training costs
con1a,ned, and the organi za1ion
p;,nolcs from '"1h1n. _when po~siblc, 10 help achieve these
goals. Now consider what would
change 1f 1hc organ11a11on 1dcn11fies a bener competi1ive
posilion by specinh, ing in designing
nc' and innovati ve compu1cr chips and outsourcing their
production. The orgnnitalion's recrui t-
ing focus would now be on idc nu fying and a1trac1ing the bc, t
and brigh1es1 research and dcvel•
opmcnl 1nlcn1 10 join the organiza1ion. and the cosl of doing
so would be less of a fac1or. Ex1emal
hires would be more prcvnlenl dcsp11c their higher cosl
because 1hc need for 1hc 1op chip design
skills would require the firm lo in vest in new, more expensive
1nlcn1. The relum on lhe larger
siaffin g invcs lmcnt woul d be much gn,a1cr lhan under lhc old
lo w-cost producer stra1egy. ln1cl
wc nl 1hrough 1h1s lypc of 1ransfom1au on in the early 1970s

34. when i1 moved from being a producer
of semiconduc tor memory chips 10 programmable
microprocessor chip,.
Because staffing innue nccs lh e skill s, mo1ivations. and in1e
rcsts of lhc organi,ation's
employee<. umn1endcd s1rateg1es may emerge in an o
rganization as employees c.ercisc lhei r
,n1ercS1s and skills. These emergent strategics can ac1ually
crealc new marke1 opportun itie s for
ihe firm and ,nnuence fulurc business strategy. Fore,amplc, an
orgamzauon in1cnding 10 become
a leader in pharmaceutical drug research and deve lopment may
alter its course 1oward gcnomics
research because 11 finds lhal many of the sc icn1is1s ii has
hired 10 do trad itional research have
skills and e xperti,c ,n this area as ell.
How the Organiational Life Cycle Affects Staffing
The orga,11~atio1wl and product lift cycle can also innuencc a
firm 's choice of strategy. As
a finn or a panicular producl ages, ii grows, matun:s, declines,
and dies. A firm 's strategics
oflen change 10 adJUSt 10 lhc diffcrenl stages in the life cycle.
Dunng 1he irirrod11ctio11 stage
"hen a company is fonning, anracting top technical and
professional talent is often a prior-
11y, oflcn requiring 1hc company 10 meet o r c.cccd markcl
co111pensa1i on ra1es. Firms 1hat lack
1hc rc,ourccs 1hey need 10 a11rac1 lhc 1alen1 1hcy require to
gel off the ground some1imes offer
applicant1 ownership in the company (company st0<;k,
generally). During the growtlr s1agc, new
companies or produc1s musl sci 1hcmsclvcs apart from
competilors 10 gain cu, 1omers and market

35. share by pursuing mnova1ion or differentiation strategics.
Because the y ore less established and
Lhu, higher-mk employers, lhcy oflcn need to invest more
money and resources in staffing to
a11rac1 the 1alcn1 1hcy need lo grow. They usually lack a large
and slrong internal 1alcn1 pool.
and 1hcy need to hin, new employees externally as they grow.
Because of their rapid growth,
cmplo)CC> arc like ly 10 be promoted or transferred 10 01hcr
positions fas1er lhan during the 01hcr
Slages of an organizntion's life cycle.
During the mawrity stage of the li fe cycle, lhc firm's products
and services have fully
c, ohcd, and their market share has become established. The
company' s f0<;us then shifts 10
ma1 n1ain1ng or o btaining funhcr marke t share via a cos1-
lcadcrship strategy. Companies achie ve
thi, b)· stn,amli ning opern1ions and focusing on effic iency.
Because mature companies have a
lar~er poo l of in1cmal talent from which to draw. the 1alcn1
focus becomes more inlernal dur-
ing thi s , 1agc, and promotion opportunities can decrease
unless the turnover of lower perform -
ers is managed carefully. Many companies also rcs1ruc1urc
during their ma1urc years, hich
require, employees 10 be more adap1able and mobile as 1hc
company' s needs for workers and
, k,11 , change.
Companies in dec/i11e arc facing shri nking markets and weaker
business perforn1ancc.
A company in decli ne can pursue a cost-leadership strategy and
allow 1hc decline to continue
un11I lhc business is no longer profi1ablc. Ahema1ivcl y. ii can
try 10 make changes to revive ,ts

36. 29
30 Ourt...-r ~ • Bt.Nn1..~ JnJ StJJTlni Stnlc~,~ ha.nee ib
proJuct N :scrv,cc. Lhc firm typica)J
If hoo,c, 10 If) 10 c • y "<lo...
T _. U..T PHJWSOPHI
pt'C'dUl'I or ,en ll"! II C - I !ti - t'I
3
,n.•;.·ia.litJtJOn l,rdiITcn•no 3uon ,tfll c _,1 ho, a fim1· , bu
sincs~ strategy shapes It
' · . h,,e J,,cu,s,-u • s st.trr,
Up hJ rn,, point. "1.: . I lool 'i for in II~ new hin:s. A firm s
human tea
h cliarac1cn~ucs I rcSOo
m:eJs .:inJ inllu1.·nc~·, t c n •nee 3 cornpJny's staffing ~trntcgy
as well. We d' ltt.
,trJICg) and IIS 1alcn1 ph1losoph) ,n u, 'SC¾
thJ ' 01.' I
THE FIRM'S TALENT PHILOSOPHY
. .
050
h , ,s a si•sicm of beliefs about how IIS em ployees sh
;J ~ PJ «JMp JixwJ...,.. D (if'f'I l
r,q-J.•T't'J d,.,.JJ bit 11Tll.'ft!

37. An Of!:aTTuauon > talent philb ,~s }oundcr.,, 11 reflects how
an organ12ation thinks •bout OUld
be i.n:a1cJ. Typical ly sbapcdme ~r an,zauons view employees
as partners and key Slakehoi,,.'_~
em plo} CCS. For e,umple. soh .
1
~, 11 emploi«s as more expendable and easily rcpi-.:7' the
company 11 hcreas 01 ,rs . . . -...,It_
HCIIA." IIESO[ RC£ STR.ffCGI"
tk lusbr:.- c,jlk nirur ~
raor,,rr,l1ulnlOl,-.1dtrJtrNJilfl/'ltJ/f I
J:.,uuv.D~):..
STAFFL"G STRATEGl"
IN cvr.s:I,tlbM ,,f prwnruJ. pc>lu:,n.
and brNllDl'J utd io moNUt' th< _foft.
ofla/rnI uua rltrouJlr. '11111 ouJ of""
~mtr nmr
A
,n n,ny 's b~sioc» ,traiegy can al so mfluence how a compfany
'"11crac1s wnh IIS employcts,
comr-- d d 10 manage the movcmcnl o peop c 1010, through and
0 "'h1ch th1.·n JffC'C~ hov.• II cc1 es ' IJt ti
the com pany._ e stral""" hnks 1he enun: hum an resource
function With ,L
A fiml s hwnan resoun: • .., r ....

38. , . Su.u« ie human resource management a 1gns a company' s
values,.,.
finn s busmcss strategy. • d · n h b ....
•0.1.ls ",1h lhc b<h»'IOO. values, and goals of employees an '"
uences I e su Strategics of CICfl
~f the firm .> human resource funcuons. incl uding Its staffing,
perfom1_ance manage men~ llalo-
'"" and compcnsauon fu ncuons. The alignment of 1hcsc
scp_:ira1c funcuon~ creates an intc&ral,d
h.;;;.an resource management system supporung the cxec uuon
of 1he business strategy, gujd,,J
by the llllenl philosophy of the organllauon. . ..
An on:amzauon's oicrall staffing strategy 1s the cons1cllauon of
pn ont1es: policies, 111d
behaviors u~ d 10 manage the flow of 1alen1 in 10. through.
and oul of an or~amza11on over time
An orgamzauoo·s ialcnl strategy thus encom passes 1ts
approache s 10 acqumng, deploying, and
reiammg its talent, and the choice of Jobs 10 which II de voles
greater or lesser resources, A finn's
suflin• , traieey ultimately reflects 11s busmc ss sira1cgy.
human resource strategy, and lalcat
philos,;phy. Ve nexl look more closely al how a company's
talent philosophy shapes its stalling
s1r.11cgy. .
If 001 created in1en1ionally, a firm' s 1alen1 phi losophy
evolves on Its own as the personaJ
1 aJucs of high-level managers an: expressed m tl1eir hiring and
1alen1 management decisions 111d
actions. 01cr ti me. lhcsc value; and perspectives become those
of the o;;aniuu ion. Johnsoo 4
Johnson ·s arucula1cs ,ts l.1len1 philosophy as part of the

39. company credo.
The four con: questions 10 ans1<er in dc1cloping a talent
philosophy are summariztd In
Table 2-1. We II Iii discuss each of the questions nexl.
Filling Vacancies or Hiring for Long-Term Careers
An organi,.ation"s 1alen1 philosophy can focus on a short- or
long-lcnn hori,on. Some organit.1-
uons fill open positions 1Vith people abk 10 do 1he open job
without also considering their likeli-
hood of advancement. The only concern is geuing a qualified
person in the vacanljob as soon as
possible. Other 0111anizauons, mcludmg Nokia, believe in
hiring people wi th the ability 10 bod!
fill 1hc vacant Job successfully as well as move inlo other
positions in th e organi zation over time.
Google is famous for hmng lop 1alcn1 c1en when ii docsn·1
have any openi ng as much 10 keep
this 1alcn1 from compelilors as 10 build its Ol'.n capabilities.37
ltj:jr;fQ Questions Addressed by an Organization's Talent
Philosophy
1 · Do we want people to contrrbute to the company over long-
term careers o r do we want
to focus on f.11,ng vacancJes ,n the short term?
2. Do we value the rdeas and co I b • f · . 7
3 Do n n ut,ons o people V10th diverse ,deas and perspectives .
we see our employees as asset t be
ch wh s O managed or employees as investors who
oose ere to allocate their time and efforts?
4. Vvlia1 are our ethic.ii pnnc,ples when rt com~ ur em

40. ployees?
Ch:ip1cr ::! • Uu~mcss and S1.iffi ng S1n:ueg1es
If a company's talent ph,losoph) 1> 10 h,rc employees for long-
tenn careers, 11 shou ld
fo.: us on lun ng people w1tl1 both the polenual and 1hc desire
10 e1•entually l>c promoted, TI11s
'""·rca,c'!> 1h..: hl cll hood thJt employee(; wi ll he able 10
1al,.c ad vantage o f the tr.un ing and career
;id , 011amcnt opportun111cs the organinu1on make s avai la
ble. Such a co mpany should al so in vest
more hra, 1ly m the siafling sy~1cm for 11-. entry-level
poMltons, as 1h1~ ,s also Lhc source of t.hc
conip>n) ·, future leaders. P&G hires less 1han one -half of I
percent of 1hc ~00.000 people who
3pply r ach ) Car for us cnLry-lc,cl managem ent po"111on,.
placmf! strong cmpha~1s on candi-
date,· ,•nluc.s. cmpa1hy, and lcadcnlup and in novauon skills.38
The company's staffing mvcst-
lll Cnt ,s wonl~l as 95 pcrccnl of II-> talen t ,1ans at 1hc entry
level and progresses throughout the
orcam,at to n.
- If o comp:rny has high turn over, a bcuer strategic choice
might be to focus on filling
1 ucanc,cs quickly and hiri ng people who can hil 1hc ground
run ning. Why? Because any 1rain-
inf costs arc unlikely lo be recovered 1f a new hire leaves
quickly. If turnover is low and
ihc compan y invests a lol of money and time developing empl
oyees. 1hcn Lhc bcucr strategic-
choice might be to hue employee s for long-term careers.
S11nilarly, if 1hc company·s business

41. ,n,•olves long-1ern1 projects. or higher-level managers need a
substantial amoun1 of knowledge
, boul how the company works lo be cffecuvc. then hiri ng
employees for long-1enn careers
makes scn::.c.
The Firm's Commitment to Diversity
Another cornponcnl of an organizat1 on·s talent philosophy 1s
its comm1uncnt to diversity.
A finn can proactivcly rccruil a diverse mix of people and stri'c
to in corporate diversity into HS
11 orkplace. Ahemauvcly, the company can more passively lei
diversity "' happen on its own" 10
1hc ex1cn1 tha1 II occurs. In hgh1 of the many laws and
rcgulauons we wi ll cover in Chapter 3.
active ly managmg <l iversily through staffing is usually the
b<ner strategic choice.
Diversity is important for more lhan legal reasons. Years of
research have shown 1ha1
11 cll-managed, heteroge neous groups wi ll generally
outperform homogeneous gro ups in prob-
lem solving, innovati on, and crea tive solution building. which
arc critical to business succe ss
10 today's fast-paced global markclplace.40 Organizat ions also
benefit from diversity because
1hcir customers arc diverse. In the United Stales today, African
Americans. Hispani cs. Asian
Ame ricans, nnd Native Americans have an cs1ima1cd combined
spending power of more than
S1.3 1nll1on.'1 Dive rse empl oyees may also be bcncr able 10
understand and negotiate with dif•
fcrenl suppliers and customers and develop products and
services that heller appeal 10 different
people.

42. An organizati on's staffi ng strategy reflects i1s commitment 10
diversity. For examp le.
3M values d1vers11y. innovation. and long-1em1 comrnitmenl
on the part of its employees.
Conseq ucn1ly, ii focuses on a11racung and hiring inlelligenl
and in1ellec1ually curious individu-
als. As s1a1cd on its We b site, "Al 3M. our recruiting efforts
arc first and foremost dedicated 10
idcnu fying lalenl. With th at goal in mind, we look for
individuals from all walks of life that share
our commitment to innovo.1ion and cxccllcncc ... ,12
An organi zauon proac1ivcly seeking diversity is likely 10
establish relationships with
recruu ing sources of di verse people, and actively create a
culture of inclusion. For example.
Goldman Sachs diversity recruiti ng programs include hosting
women 's leadership camps for
undergraduate and MBA students 10 explore career
opportunities, Employ Ab ility internships to
give s1uden1s wi th di sabilit ies 1he opportunity 10 gain work
experience, and a Pndc Summit 10
mlroducc LGBT undergraduates 10 tl1c company.'3
Th is chapter' s Develop Your Skills feature wi ll help you to
assess your organiza tion's
cl11na1c for diversity.
Applicants and Employees as Either Assets or Inve stors
Another imponant way organizations differ in their 1alcn1
philosophies is in view ing their joh
apph can1s and employees as either assets ( i.e .. "human cap
ital") or as in vestors. If applicants
and employees arc thought of as assers, the staffi ng focus is on

43. managmg costs and controlli ng
1he asse t (as is the case with managing other assets, such as
land, equipmen t. or steel). As a
r«uh. 1he goal lends 10 focus on the acqu isition and
deployment of labor as cheapl y and qu ickly
as pos,iblc.
31
DEVELOP YOUR SKILLS
. . for Oive r sitV
44
Measunng Your Firm s Climate Pie se indicate the extent to
wh,ch you agree or
t 10 divf"'IY a I n has the follo'<1ng charact , . rov ... ,ant to re
nforce your f,rm s commnmen ' f I that your organ1za 10
eristJcs I
and enhance your appeal to d~e~ Job applicants. tt she ~t:'. the
number from 1 to 7 that corre~ponds to your a~r I:
~o u~erstdnd your orgarn:at.ton s current d1-..~rsity
~1m~~:rs1ty ~e to the left of each item num er
~lo ng lS a scale you can use to assess the C imate or
n your organizat-on
5 6
__ __..!, ____ !_ ___ __.!~---::--:::=-:=::::ii~;;~s;11;igh;-
;tliyAAg~r:;,ee;---AAg~r:;ee;---S~tr;~
Strong'Y Disagree Disagree Shghoy Disagree Ne,ther Agree nor
Disagree . .,..,

44. 1. A shc1red commitment to organizat.1ona1 goals
-- 2. A demonstrated commitment to cont1nuous learning = 3.
Organ1za11onal flexib1l1ty, responsiveness. and agility
4. A focus on innovation and creat!Vlty
13. Equal access to opportunity for all employees
--14. Shared accountab1hty and responsib1hty
--15. A commitment to d1ve rs1ty on the part of the or~
-- zaoon's leaders
16. A demonstrated commitment to diversity = 17, A
representauon of different demographic gr00ps,
all levels of the organization
5 A collaborawe conflict resolutJOn process = 6: Team.
interdependence, or collaborauve 'N'OrK
environments
__ 7. Paruopatory work systems and employee involvement
__ 8. 360-degree communicanon and 1nformat1on shanng
__ 9. Fair treatment for all internal and external stakeholders
__ 10. Pa...er shanng
__ 11. Equitable systems for recogn111on, acknowledgment,
and r=ard
__ 18. Diversity-focused mission, goals, and slfateg"5
19. Diversny education and tra1n1ng
- 20. A representation of diffe rent demographl( gr
-- among internal and external stakeholder grOUps °'II
12. A demonsuated commitment to community
relato0nsh1ps

45. Sconng Md up 1our score< Poss ble scores range from 20 to
tCQ
Scores abo~e 110 rtfle<t a mofe pc>SJtle d versity chmate
By contrast. 1f aprltcants 3nd employees an: thought of as
i111·,stors rather than CA~
the focus 1s on establish ing a mutually bcnefiCtal relationship
in" h1ch e mpl oyees arc rcccpuu
as in,esting their n:soun:es (lime. 1alcn1s, energy, and so forth)
in the organization in exchllp
for 3 return on that in vestment (a supponive culture. good p3y
and bcnclits, professional dtld-
opment, opponumtics. and so on). Because talented employees
(as in,·cstors) can choose nu•
in vest in the company (by not applying for or accepting a Job)
or lo discontinue hei r invutm
in the organtZation (by leaving) at any time, an organization
with this philosophy docs iu bc1I
to he as auractive as possible to potential and current
employees. When viewing applicanu al
employees as investors. the goal is to ghc them a return on their
personal investment in tbt
organization.
. An organ1Zation·s staffing strategy rcnects whether it looks at
its employees as 15.l(UI
in vcstors. V1ew1ng ~mplojees as an asset to be managed
generally leads to a low-cost approa
to _staffing. A dominant staffing go3J of an organization such
as thi s would be 10 acquui •
quickly 3nd cheaply as possible emplo)ces ho can pcrfonn the
dutie s of a job. RCC111lldl
soun:es 3nd sclccoon methods requ· h r, . .
. mng I c inn to lnest a large amount of ti me or mOII!
"

46. 1
ouldh behldess hkelyf 10 be uscd. Although an asset-based tale
nt philosophy is unlikely to gelll·
a ca 1g egrcc o emplo)ee co •l ·
.
1
mnrnment, 11 can be an eITcctivc approach for orgamzatllll
pursuing a ow-cost strategy · h' h h' J
turno>er an: 001 d '" w_
1
~ . tgh levels of skill arc not required, and high lc1cb 11
isrupu,e or proh1b111vely expensive
By contras,, orga nizauons that rel th · ftlli
that the commitment and efforts r Yon c de velopment of new
products arc hkel) to
such as Coming Pfi zer " ' h
1
°
1
115
employees arc key dri vers of their success. OrganizatOI
, . n tr poo 3nd Ge h f , •• ,.
capped 1f they embrace · n b. nentec , or example ma)• find the
mse lves .......
• asset- ased h'I h ' ~

47. make it h3rder fo r theni 10 • 11 P
I osop Y of talent. An asse t-based philosophy•
" ract lop talc I . . .... 1
pcrfonn ance. n · retain good e mployees, and inspire their,..
Chaplcr 2 • Bus iness and Staffing Str.ucgi~
the Firm's Commitment to Ethical Behavior
;n org:1n11auon's phtlo~ophy toward ethical Ist;ucs includin g
fairness. honc~ty, and mtcgnty is
...,nce1cd 1n 11> taknl philosophy and <Jarring s1rn1egy a.<
wc1. A firm wuh a talent pluosophy
ro.-u,cJ on m:unta.inmg h1 ~h clh1cal standards 1s more hkc1 y
to explain to applicants 11s hinng
proce,s-that 1>. how the ltrm w,11 mal.c 11, hinng dem1on and
the reasoning behind the assess-
ment method~ 1t U)CS to c, aluatc JOb candidates.
Commun,cauons wuh candidates arc hkcy to
he n1ore fr<quent. and delays m1mm1tcd. By contrast. firms
"hose staffing ph1osoph1es an: less
focu-..,d on c1htcs w11 be more prone to cmphasJZing hiri ng
expediency and ow rccruiung and
st•fflng costs at the cxpcn,e of building trust "ith its job
apphcants and employees. Beve rage
and snac k maker PepsiCo 1s a company that applies its core
ethical values to us staffing and other
HR pracllCC) nnd even explains ilS hiring process and g1,es
interview tips on us Careers ftitc.
46
Numerous government agcnc1es. professional organizations.
and socicucs have developed
guiddines to help org3ntZallons establish good standards for

48. staffing and address many of the
etlucal 1>sucs and the grey areas of the law related to it. Some
of the best sources for stafling-
«a1cd standards and ethtc31 guidelines include the following:
Tht American Ps)c/10/ogical Assoriarion (A PA ).
• Publishes a document that describes test takers' nghts and
responsibilities. (Available
online at" ww.apa.org/sc,ence/ttrr.html.)
Publishe s the Srandards fo r Ed1<catiorial and Psyc/10/ogical
Tt sring ( 1999) along with
the Amcncan Educutional Rcsean:h Associauon. Amencan
Psychological Association,
and the National Council on Measurement in Education.
(Available for purchase onlinc
at www.apa.org/sc icncclstandards.htm1.)
Publishes rcpons to address emerging staffing 1Ssues. such as
the APA' s r,sition on
good and ethical Internet testing practicc41 3nd test user
qualifications.' (M3ny of
these reports arc free on the APA's Web site located at
www.apa.org/sc1ence/tcs1ing.
html.)
• Publishes ethical guidelines to help staffing cxpcns.
(Available online at www.3pa.org/
eth1c<lcode2002.htm1.)
Th, Socitry for /11d11srrial and Orga11i:ario11al Psychology.
• Pubhshes Tl1 t Prinriplts fo r tht Validarion and Ust of
Ptrso1111tl St ltction Proctdur,s
(2003). (Av3ilable online at www
.siop.org/_Principles/princ1plesdefault.3spx.)
• Publishes a report on record keeping 3nd defining job

49. applicants.49
Tht Unrfo mr G11idtli11ts 011 Employte Stltcrion Proctdurts
(1978)-although this pub-
lication doesn' t co,•cr Internet-related staffing issues, 1t
provides a unifonn set of legal
standarus governing the use of employee selection procedures
and validation standards
generally nccepted by the psychological profession. (Available
online al http://www.gpo.
gov/fdsys/pkg/CFR-2011-title29-vol4/xmVCFR-20 I 1-titlc29-
vol4 -pan 1607 .JUTII.)
The Socie ty for f/11111011 Rtso1<rce Ma11agtn1t11 r (Sf/RM)
represents over 200,000 human
resource practitioners. The organization provides numerous
resources and publicntions on
its Web site (www.shnn.org). SHRM' s code of ethics for its
members is also available
online at http://www.shnn.org/about/Pages/cthics.aspx.
Academy of Ma11agtmt111-foundcd in 1936, the organization is
a leading professional
association for scholars dedicated to creating and disseminating
know ledge about manage-
ment and organizations (www.aom.org). The code of ethics for
members can be found at
http://aom.org/About-AOM/Code-of-Ethics.aspx.
Table 2-5 offers some examples of how a linn's staffing strategy
is innuenccd by its HR
strategy and talent philosophy.
DERIVING THE FIRM'S STAFFING STRATEGY
Having an appropriate and high-potential strategy is useless
unless it is executed prope rly. This
usually poses the biggest stralegic challenge for orgnnintion,.

50. For cxmnplc. when Ron Johnson
became CEO of embattled department store chain JC Penney.
employees as well as c ustomers
resisted the changes he tried 10 implement. Johnson found that
his biggest chall enge was not
decidin g which direction 10 take the company , but ligurin~ out
how to effec tively execute the
strategy.50 Staffing is u key ste.p 10wartl strategy executton.
33
H
i
I
I
I
Ourc,cr: • Bu.Qn~...s J.nJ S1.1Jli~ Slrn.tc~1t·,
I t P
h'losophy Affects Its Human Resource
-
H waFirm'sTaen '
St~ategy and Staffing Strategy
Ta lont Philosophy Human Resour<t
Str•ttgy Staffing Strategy
Vants employees to
contnbute to the ~rm

51. over IOf"lg•term careers
Values the ideas and
contnbuuons of people
with dive rse ideas and
perspectrves
Views appl•cants and
employees as investors
of their tJme and effort
Has high ethical
standards regarding the
treatment of its
applicants and
employees
Acquires. develops. and
reta r,s talent abfe to
contnbute to the firm
over tuT'!e
Acqu1res and retains a diverse
workforce, creates and
maintains a cvlture of 1nclus1on
and respect to leverage
diversity
Develops mutually bonef1c1al
relatJonships with ns
employees, respects
applicants and employees
Treats applicants and
employees with fairness,
honesty, and integnty

52. Hinng Recruits and hires talen
able to perform now and in fut
JObs ~
Deploying Uses succe ssien
planning, career planning,
and career development to
take advantage of empl oyeos•
potential over time
Reta ,n,ng. Retains top pe rfo
and h1gh-potent1al employ,:'""
H,nng Recruits and hires diverse
people
Deploying · Creates mentonng
programs
Retain,ng. Rewards and promotts
d111ers1ty "champions"'
H,nng: Attracts and hires
employees who fit the firm's
culture and values; responds
qu ickly to applicant 1nqu1ries
Deploying: Puts employees 1n
Jobs that match their interests and
ab1l1t(es
Retaining: Allows flexible woiic
arrangements to meet employ..,-
needs

53. Hinng Expl ains the hmng
dec1s1on-mak1ng process and the
uses of all assessment methods;
hires based on ment; complies
with laws
Deploying· Gives honest
performa nce feedback
Retain,ng: Promotes based on
ment
Ul~ma1ely. a finn 's bu sonc,s s1ra1<gy depends on employees·
'"llingncss und abili1y ID
exccu1e 1L Leaders " 11h a 1alcn1 m1nd-se1 generally share
Allied Signa l CEO Larry Bossidy's
con,·icuon th31 "Ao lhe end of lhe day. "c bco on people. nol
s1r.11cg1c,.''51 Leaders like Bossody
bche,e lhai building lheor oalcm pool lead., 10 a compeUI I C
ad,an1acc on and of il5clf. Therefore.
11 JS an 1mporuu,t part of their Jobs. •
h
An organw,tioo's slaffing s1r:ueg) should be dcml'd fmm and he
clearly supponi,e of 1~
uman resource str:Ue•y "hoch a, " h 'd I ks
f
·•· • ·. • c a,e sa, , in lhc enure human resource function 10 lhc
e.te•
cuuon o uM; org:aru1l1mn s ocrall b S1
no,auon's ·· 'enl ac · • d lboncss >1r:11cgy. • h addresses 1hc
qucs1ion. "how will !he <i!•
wi qu1silJon an rctcnuon tra

54. funcuons conlribuie to lhe · inong. compen<a11on. :ind
performance managemt01
organ11.auon's compeui ad . •
As we haC noied th IC van1agc and help 11 successfully
compe1e.
. ere arc many cih I
profesSJ onals ha,c 10 coniidcr. We '"II .'ca 1>sues rcla1cd lo
s1affing 1hat human rcsourte
conunuc 10 discus, ohem 1hrough ou1 1he book.
Chapter 2 • BusmcM and Siaffing Strategics
For example. RMB Ho/dongs os lhc ho/dong company of some
of South Afnca s leading
fi nancial , crviccs companies RM B' s human resource
s1r.11egy is to "recruio. bui ld and rc1ain lite
t,cSI people from Souoh Africa·, dlersc popula1ion base. In
particular, 11 , ee ks people wllh an
cnorcprencunal a1111udc and encourages an owner-manager
cuhure. People an: empo"ered, held
:,ecoun10blc for !heir ac uons. and arc rrnardcd
appropnaicly."11 Likewise. the human resource
,,raoegy for Melso. an organ1Lat1on "hose core businesses arc
fi ber and pa per oechnology. rock
;nd mincrnl processing. and au1omauon and con1rol
occhnology. " rencc1cd by ohc following.
Toe aim of Mctso's human resource stra1cgy os 10 ensure the
avwlab1h1y of skilled
and comm111cd personnel needed by Mctso's businesses and 10
develop such human
n:sour<c pohcocs that allow utilizing 1hc in1cllcc1ual cop11al
in achieving common goals.

55. Toe goals of the human resource straoegy funher involve
directing the 1r.U1sforma1ion
in Mel>O 1owards a new type of kno ledge envi ronmcno.
slllying up-10-dalc w11h the
sU1TOUnding world and an11c1pating changes affecting human
n:sour<c policies.
The role of lhc human resource function is 10 safeguard lhc
devclopmcnl of
kno" ledge nnd compe1cncies. as well as lhe dcvelopmcno of
leadership required for a
mouva1ing working aimosphere and the desired personnel
s1ruc1urc. The 1asks of the
human resourec function funhcr involve providing suppon 10
networking and csoablish-
menl of sus1ainablc ways of opern1ion. Moreover. we ensure
for our pan tha1 Me1so 1s
an a11mc1ivc and rcspcc1cd employer to bolh existing and
fu1urc Melso profcssionals.54
Toe primary s1affing strategics for bolh oflhese organmuions
are easily derived from 1he1r
bro:Jder human resource s1ra1egies.
As "e have c,plni ncd. if a business wishes 10 pursue a low-cosl
slr.llcgy. ii will need
to focus on controlling labor costs. reducing expensive
1umovcr. and hiring people willing 10
Ork fo r markc1 or below markc1 wages. lls tr.li ning
programs will likely be slreamhned and
focus narrowly on currcnlly needed behaviors and skills. And
rather 1han rewarding innova1ion.
ohc company' s performance management sySlem is hkcly to
re"ard performance. This. in 1um.
d1rcc1ly affcc1s i1s recru1ung and s1affing functions. As we
will cover extensi vely in Chapter 4.

56. cons1s1cn1ly doing a job analysos w1ll 1r.1nsla1c c,•cry
posi1ion in the orgnnozauon into a set of
employee compe1cncics. s1ylcs, and traits 10 which applican1s
can be ma1chcd. The goal is 10
hire people ho ha, e lhc 1alents necessary 10 cxeculc the
business slr.ltegy. To do this. manag-
ers need 10 de1erm ine: ( I) the in vestmen1 1ha1 needs 10 be
made 10 staff each job: (2) v. hc1hcr to
r,-crui1 people for only 1he present job opening or fulurc.
advnnced openings; and (3) the skol!
le ,·els needed by new hire s. Identifying lhcse and other goals
establi shes a critical link bc1wccn
ohc organi,a1ion' s businc,s s1ru1cgy and its HR (and slllffing)
function. Al a minimum. an orga-
n11a1ion' s business str:uegy is likely 10 innuencc ( I) ilS talent
philosophy. (2) t11c 1ype of people
ohe organi,a1ion rccru11s, (3) the type of infonnnuon
communicaled during 1hc hiring process.
(~) 1hc IYJl<' of rccruilcr used. and (5) the 1ype of recruitmenl
media used 10 publicize opcnings.55
Because s1affing ac1ivities are nol 1he only human resource
ac1ivitics an organization under-
takes, ii i, also 1mponan1 1ha1 the straocgies of each
func1ional area of human resources comple-
mcnl each mhcr as well as tlie organiza1ion·s higher-level
human resource s1r.11egy. For example. a
stalling s1rn1cgy of hiring people wilh lhe po1ential 10 fill
higher-level positions over time would be
unlikely 10 work "i lhou1 well-designed nnd implcmenled
!raining and development sys1cms. A broad
undm1anding of tlie role of the organization' s hulllll resource
sys1cms and funclions that suppon the
bu<mess s1r.11cgy guides 1he dcvclopmcn1 of more specific
s1r.11cgics for each of the f uncuonal areas.

57. THE FIRM'S STRATEGIC STAFFING DECISIONS
As " c have explained. a company's talent philosophy re0ccis
how it ohinks abou1 its employees
and innucnccs its s1nffing s1ratcgy. Organization s have 10
make se,·cral decisions when it comes
10 de, eloping and executing their s1affing s1r.11cgics. The
mne decisions th a1 in0uencc a com-
pany' s , 1affi ng , 1ra1cgy arc summarized in Table 2-6 and wi
ll be discussed in grca1cr dc1ail ncx1.
Should We Establish a Core or Flexible Workforce?
An organization's core workforce consislS of people who are
percei ved by the organi,.auon 10 CORE WORKFORCE
35
bi! regular employees who arc central to what the organizati on
doc~ or produces. These workers '°"~r,.,,rm. rtRutt,r rmplo~u ,
arc considered 10 be imponnnl. longer-1cm1 contribu1ors lo
1hc company. Titc rcfore. 1he com-
pany lrics 10 rc1ain 1hem for longer periods.
36 C'h.lt"'lcr : • 8 u'1tt........S .mJ S1:1ffin~ StrJ[cgu:-,
FU:J.JIILE II ORK£RS
~ t,JW rart·ruN or
rm.."nlo."'f •orl,n t>I' ir.Jr~r'II
,~ n111olm-,d }Ur Jltor.,r
~,-.Wb,fim,._,11.1"1tt'ttJrd
/.ITER.l'AL TAIL7 FOCLS

58. o prrfrruut for tkidopml( t"lf'lu)rrs
and pruniorm, /rum 1o uh1.11 r1.1 fill Jvb
UJ't nmei
EXT/iR.l'AL TAU7 FOCl 'S
c1 prt/urnrr for /Wm, fl)bJ 1o11/i ntl4
rmplt1)UJ hurd/r1-m m,mdr rltr
flff,:(Jnl:JJI/Un
Enlii·i Nine Elements of the Sta:ng Strategy
1 Do "e want a core or fle.--:,b!e ,,orkforce
2: Do we pr•fer to h,re ,ntemally or externa lly' d d skills?
3. Do we want to hire fo r or train and develof nee e
4. Do we want to replace or retain our talent ?
S. What levels of which skills do we ne1 whe re
6. Will we staff proacu ... ely or react1vely
7. Which Jobs shou ld we focus on? ,
8. Is staffing ueared as an irwe stment or a cos~
9. Wi ll staffing be central,~decentral1Zed
Flexible " orkers. or conungenl 11·orlm . hll e less JOb sccuniy
than the firm•s core "'Orl
fm't'. The,,c: people may be ieinpor.uy. leased, pan-ume, or
contrJCI workers. Typical ly, lhcy Jia,;
3
fo""al conlr.lCt II ith the orgomzation ihol specifics 1hc nature
ol tl1etr relauonsh1p. When a f111n•s
business slo11 s do11n. nex1ble 11 orlers an: usually let go
before core 11 orkers. When the finn•s
busines> e.pands. ne<1blc 11 oflcrs ore added someurncs 10 the
11orkforce before core workers
unul 11·, clear the expansion 111 11 be pe""oncnl. I~ other

59. wonls, a flexible workforce also allo:
3 company 10 ad Just qudly 1o , olaulc chonges m demand for
11S products or services, thereby
dccrca.mg tlic lilel,hood ,111 ,II h,ve 10 Jay off 11S core "
orkforce hen dc~and shifts again latt,.
Companies hkc Kelly Services, Accoun1cmps, and Manpower
provide temporary worktri
on an os-needcd bos,s 1o help a f,"" odJuSI 11.1 Orkforce 10
115 produc11on needs. Eigh1y JJCrttni
of cmplo)crs use some form of non1rad1uonol staffing
nrra~gcmem, and many use more llUQ
one ~6 3M uses O wide rongc of conungcnl workers 10 meet us
vary ing workforce needs and IO
create O feeder pool for future h,res.
57 Mail-order compomes and shipping companies like I.JPS
and FedEx regularly use 1emporory " orkers 10 ramp up for
bu,y holiday periods.
F1«1ble arrangcmcnlS can also be used 10 help meet a
company"s workforce needs.
Flexible Job arrangements 1h01 al low people 10 work ou tside
of the tradlllonal nine-lo-fi ve sched.
ule include Job sharing, allowing emplo)ecs 10 11 ork pan- umc
or work from home, and lak-
ing extended pencxls of ume ofT 10, soy , ollcnd school or raise
children. Some Ocxible worun
would prefer 10 be core 11orlcrs ond have greater job s1obi
l11y-especia lly if their companin
offer belier hcol1h, reun:menl, and 1acauon benefilS 10 core 11
orkcrs. Other Oexible workers bke
the nrrangemen~ believing II helps them belier balance their
work and non work responsibilities,
such as school and family hfe In fact, m recent surveys, the

60. rna1on1y of working women lly
1> orlung pan-ume "ould be the ,deal employment arrnngcmcnl
for thcm.58 Moreover, some
people '-' Ould be unoble 10 work 01 all if their schedules
weren't flexible. Thus, having a flcxiblt
'-' Orkfon:e con help on orgonmuon lap undcru1ih1.cd, high-
quality 1alcn1.
Organ1ta11ons need 10 dcte""inc which Jobs arc best for core
and flexible workers. and lhe
oppropno1c mix of each. Trad111onall) , firms have been more
willing 10 nllow fl exi ble arnngc-
menlS for emplo}ees m suppomng func uons than those mjobs
more ccnlral 10 the organizall011'1
s1ra1egic execution. Ho"ever, this may be changmg-cspec1ally
as employers search for wco1
1<orldw1dc m onlcr 10 become more globally compe11u>e. As
one IBM cxccu1ivc said aboul hiJ
company's employees. "'ho often "ork from home: "We don '1
care II here and how you gel yoor
11o rk done. We care 1ha1 ) OU ge l )OUr 11 ork done:·59
Should Our Talent Focus Be Internal or External?
One aspect of an organizo1ion's talent philosophy concerns its
preference for developing, rc111in-
~ng, and promoung empl~yccs, which 1s an internal talent
focus, versus hiring new employees
d
or lugds,hcr-levcl Jobs, 11 h,ch is an external talent focus .
Which 1s the bcucr choice? The answer
epe n on the organuauo • b · • n s usmcss strategy; talcm
philo,ophy; the qu:tli1y of its employee
asscssment, lraJmng ond development p d ....

61. laoor market O h ' h . rograrns; an lhe qual11y and cost of
1:tlcn1 availabl e in u~ . n I c one and a l'ldco game prod · 1 ,. ,
1 rcp= niauv f ·, uccr m1g 11 hi: con,1an1 ly looki ng for new
wen
e o its customers currcn1 tastes n,· f _..,
rccru1ung internally Focus h · is type o company would be less
focu,w OIi
acquire fresh lalcn1 ~uh sl ,~g _onth mng people from outside
the compony would help ii continually
" uh a customer sen ,cc s1~1: '" c : os1 recent lcchnologics and
trends. On the oihcr hand, a finn
gy nng I need 10 rctom long-tern, em ployees who have
developed
Chapter 2 • Bu~mcsli and S1J.Oing Slr:llcg1cs
rdJt1on,h1p~ '' 1th CU tom('~ :ind undc~tand how the company
can best meet 1hc1r needs An cx1cr•
nJI 1Jlcnt focus could undcnn,ne such a s1ra1cgy. Forc,amplc,
,f the r,"" al11o}s Jooled cx1crnaJI)
10 fill aJ1anccd JlO>iliOllS, u~ ould hlcly lead 10 high
turnover among IIS customer scn1ce rcprc·
~t'013u, .:, anJ hamper l lS a?iluy to crcu tc and maintain
quahty rtlat1 onsh1ps wuh its customers
Indeed, some organ 11a11ons focus solely on dc,c:loping 1hcir
own 1alen1 via ,ucccssion
p1, nn1ng and corccr dc vc lopn,cn l rn1hcr !hon hmng new
employees for h1gher-levc l JObs . P&G',
build•from•wilhrn 1alcn1 strolcgy focuses on building a strong
1ale n1 pipeline by mvcsung heav•
ii) ,n candidate ossc,smen110 make the best htrcs and tl1cn m
leadership developmcnl 10 build 11>
n<'I gencrauon of business leaders. P&G understands that

62. executing 1h1s s1ro1cgy means control·
hn~ a11nuon 1ha1 would disrupt 115 talent p1pehnc.60
• Both approaches can be cffccuvc depending on the
organ,.ration·s struleg,cs ond needs.
Most companies use a mixed strategy 1h01 includes both
mtcrnaJ and external hiring. Many com-
panies con>1dcr in tern al cand1da1cs first If they cannot find
suitable 1n1cmol cand1do1cs. then
they look externally. Allernauvel y. a firm can conduct internal
and external searches sunullonc·
ously, giving preference 10 mlcmal candidates.
An mtcrnol talent focus requires hinng people "i1h the capabi
lity 10 perfom1 "ell m cur•
rcndy open pos111ons. who have the capob1b1y 10 perform
well ,n the organ1zauon' s tr:unmg and
de1elopmcn1 progrnms. and who hove the potenual 10 assume
leadership positions in the organiza.
iion later. 11 also requires a firm 10 invest m Ir.lining and
cmplo}ec development 10 ensure ii has o
suffi c1en1 pool of qual ified mlcrnal job candido1cs av:uloblc.
An external 1alcn1 focus often n.-quirc,
pa) ing a premium 10 acquin: 1alcn1 wi1h 1hc exi;tmg skills
and experience 10 perform well m 1hc
organu.auon's currently open positions. If the fi"" cannot find
appropriate 1alen1 ou1>idc the firm,
it will have 10 develop and promote from wi1hin, find o way 10
subs111u1c 1cchnology for the scarce
slulls, or do witl1ou1 those skills. Table 2-7 summnrizes
rcosons organi,a1ions pur.,uc each focu s.
ltli!f P Internal and External Talent Focuses
Why Organizations Prefer to Hire Internally:
, Internal h,nng sends employees the m•ssage that loyalty and
good performance can be

63. rewarded with a promotion , thereby e nhancing the ir
mot,vat,on and retention levels
, One promot,on could generate the opponun,ty for others to be
promoted to f,11 the Jobs
left vacant
• Greater information 1s known about candidates who already
work for the organ1zat1on, so a
more accurate assessment about their fit with the job can be
made.
• Internal hires are likely to get up to speed 1n their new JObs
faster because they are already
familiar with the organization.
• Jobs can be filled faster.
• The return on the company's Investment 1n terms of tra1nmg
lower-le vel employees can be
increased when more of them are ultimately promoted.
• The higher tra ining and development expenses associated
with internal hiring can be
offse t by lower turnover, recnuting, a nd hmng expenses.
• Smaller or lesse r•known organizations some times have a
more difficult time attractin g
external talent they desire.
• Orgamzat1ons with a strong, positive organizational culture
somet1mes find th at internal
hires reinforce and strengthen the tr existing cultures more than
external hires do.
Why Organizations Prefe r to Hire Externally:
• The firm lacks qualified internal candidates.

64. • EKternal hmng can enhance an organ1zat1on's diversity.
• Focusing on external hires ca n increase the size and q uahty
of the candidate pool
• External h1res can mJect new ideas and perspectives into the
organ1zat1on
• The firm's cost of developing and mamta1nmg interna l train
ing and development programs
1s greater than its cost of hmng externally.
• Internal promotions can be d isruptive because they lead to
othe r open pos1t1ons that must
be f,lled (creat,ng add1t1onal promobon opportunities can also
be a desirable outcome as
l1S1ed previously) .
Too much internal movement can crea te instability and cause
delays in the complet,on of
proiects.
37
38 C'lupia , • BJSt""' :inJ S1:1ili"l' Su>I•~"' .
• 1
·th the Skills we Need or Train Them
Should We Hire Peop e WI
to Develop Those Skills?
• te ,e , iaffin~ dc<"tston " "heihcr an organtZallon should
prefer hinng people
Anolh<r , 1r.1 _g . dr.,;,.i skills and compc1enc1<s or " hclhcr
II should hire JlC0ple w ~~

65. alrcaJ) Jl<lS«SS
thc h rad McDonald"s fou nder Ray Kroc once said. "If we 1lrC
•lhoi,1
iho,c ,kills and ~n I cm;•' IJlcnL And I' m going lo pul my
money '" ialcnL '-61 Su 801ng1o
b"' an)" here we 1< go1 10 a,< · . PPOn,-
. ,
1
Donald" created a "orld,11dc management unrnmg cenler called
Ii•,.:•~-...,
tlus philosophy. " c > • • , _ ~"
h h
•·· n·" o, er 80 000 McDonald , managers since 115 ,ounding in
1.,, Unlmlly, " ,c ,=II1ll"' · , _ 70 1.
bl 10 ~,y
compcuu,e "aces and. dtcrc,orc. nllr:tcl ski lled worke
Companies una e ,- - 1 - b d h
rs OUaJ.
lind II n,-ccssru
y 10 hire peopi< .. ,11,ng and able 10 lea
rn 11c JO an .tram I cm instead. For .
Iha! .,.., unique 10 an 01130,,.11,on. skilled " orkcr, may no1
cxis1,.
which wo uld make it n~
10 htrc people and pul 1hcm through a company-dc,cloped

66. 1r:trnmg program. If a company doci
no1 ha, c an oppropno1c lrJ1ning ~udgct or progra~ . ,f there ts
no ume lo lr.lJn new hires, or if lb,
JOb need, 10 be filled ,mmedia1cly. the bell« dcm,on " ould be
10 hire pcoplc already able lodo
!he Job "ho can hu 1hc: ground running
Should Talent Be Repl;iced or Retained?
OrgantZauons can choose 10 II)' 1o mintmi,c 1hcir 1Umovcr or
acccpl whatever turnover Occun
and lure replaccmcnis as opening, occur The advantages of
lc1ung turnover occur inclUdt
n.-cc,ving a more frequent in fusion of nc"" ideas and 1alcn1.
which can be useful for companies
,n fast-changing indus1ncs. For example. some b101cchnology
or computer so ft ware companies
may find that lhetr emplo)ces· wlcn1s arc obsolete " ,Ihm a few
years. Un less they are w,nll&
10 in><st ,n retrarn,ng lhetr empl0)CCS, 11 m1gh1 be
benefic,al 10 cncouroge them 10 leave af1tra
few years and replace !hem w11h new graduates lratncd 1n 1he
lo1cs1 technology. When lhcrt
on abundant supply of people w11h 1hc qualificouons a fi rm
,eeks . replac ing emp loyees rrug:
also be less cxpenme than rciaming current employees for
ccrl3in jobs. The advan tages of

67. relllln1ng "orkers include a more loyal and comm111cd " ork
forcc wuh a bcuer undemanc1toi
of the company's produm, SCCtces, and processes. and
decreased staffi ng costs. If a posiuOII
,s of parucular 1mporuncc 10 1he running of 1hc company. or If
1hc 1alcn1 needed by a p:utia,.
lar pos,uon 1s d1fficull 10 find. focusing on rc1enuon con help
lo ensure tho1 lhc posiuoo u
r:ttcly vacanL
Which Skills ;ind What Level of Them Should We Seek7
One of lhc mos1 cnucal staffing dec1s1ons concerns 1he l)pcs
of s~1lls a new hire should posstU
and !he appropno1c lc,cl of lhosc skills. Ahhough hmng
managers often request "lop taltnl •
mos1 Jobs do no1 require lop skills in all areas. Objecti vely
analy llng lite job 10 delcrmi nc exllCdy
wha1 " rcqwrcd for an 1ncumbcn110 pcrform wcll 1s key 10
making 1l11s de1crmina1ion, TI1is pro-
cess " called job analy s,s and 1s dcscnbcd in more detail ,n
Chapter 4.
Some organ1Lat1ons' slllffing gool ,s 10 hire only 1hc h1ghes1-
abil11y individuals. To dodtis,
lhe organwiuon mus1 fim be able 10 recruit high-abtl11y
ind1v1duals and 1hen be able 10 idenufy

68. and hire lhe h1ghcs1-ab1l11y appltcan1s. Bc<"ousc !here is a
limited number of high-abi lity people,
for many organuauons 1h1s 1s an ex1rcmcly d1fficull goal.
Allhough 1h1s approach can be •etJ
appropnale for some organuauons. such as lop consulling firms
or other busi nesses rclymg 011
knowledge workers 10 create new producl5, for many
organiza11ons 11 1s not !he bcsl approach.
11 "often more su-a1cgic lo try lo idenufy a11nbu1cs 11ta1 arc
d1fficul1 10 change through
lraJning. and lhai effcctlcly diffcrcnua1c among oppltcan1s.
and 10 hire people who already pol·
sc,s !hem. For example technology sc
and 1r.un the sk II ,-6J I. d d _"ices company EDS has ;i ,ayi ng
1ha1 !hey "hire !he I/UIU
,oday 'oc
I
s. "
1
cc · '" 0 rapidly changing business environment like 1hc one
firms face
. " using on app 1can1s· current k II f .
quickly adapt 10 h s
1 5 15 0 ten msuffic1en1. Employees need 10 also Jean
lhc sam~ for long cpc~:; co~m:ica1e effecuvely, and "Ork " ell
w11h others. Some Jobs SU)'
lhmk of as rapidly chan : an ° crs t hangc rapidly. Even clerical

69. jobs, which we often don'!
ging, wcn1 through a pc ·00 f · - d 1"""' " hen computers and
word . n o rapid change in 1he I 980s an ,.,,_.,,
processing became ma ,
110n, h1nng an office a51151301 sk II
d
I
ms1rcam. During 1his 1,mc. for many orgam1'-
hmng an office as,is1an1 able lo ~s: ~~ y al manual typing "
0ulJ nm have been as s11111egicll
a 1ype 11,n1cr and a co111pu1er.
Ch.:1pccr 2 • Busincsi. and Stalling S1r31cgi~ 39
should We Pursue Proactive or Reactive St affing?
proac1h·c s1nffing 15 done before si luauon, or ISSues come
up, rather 1han ,n response 10 1hcm.
35 ., 1hc case with rca~livc _staffing. An organizau on ca
n staff us pos,uon, prooc uvcly or
rcacl"cly in ":gard 10 d,vcrsuy as 1<cll as 1alcn1 qual11y.
Proaclle d1 vcrs11y dec1s1ons 1< ould
,ncludc rccru111ng from sources known lo be di verse. tracking
1he d1vcrs11y of hires produced
by eac h rccruiung source. and cons1an1ly mon11oring lhc
firm"s progress toward 115 diversity
goals. nus 1s gcner:illy be_ucr ~an mak1n_g reaet,ve staffing

70. dcc,s,ons fo llo wing a specific c ven1.
such as being sued for hmng discnmmauon. Reac11vc
organilal1ons 1ake a more .. wo,1-and-sec"
approach 10 staffing. while proactive organit-lllions try 10
1dcn1ify pr:icuces or si1ua1ions 1ha1
could be pro_blcmallc an~ work 10 improve 1hc:m before !hey
become problems.
Organ1111uons 1yp1eally recru11 when !hey need 1o fill a
specific JOb opening. "hich is
job-oriented staffing. However, when labor markel5 arc 11gh1
and good recruits arc hard 10 find.
organiU11lons muSI pursue talent-oriented staffing and pursue
scnn:e 1alcn1 cons1andy-no1 j us1
"hen a vacancy occurs. This allema1ivc philosophy encourages
people within (he firm 10 1den-
ufy " here 115 fu ture skill gaps arc going 10 be well in advance
of il5 actual needs. Tots way 1hc
firm can iniccl a ~onun~ous s1ream of 1alen1 inlo lhc staffing
pipeline 10 ensure !here arc always
quali fied people '" vanous singes of lhe hiri ng process. For
example. ,n 1he previous chapter.
Mike. u human resource professional wilh Soles. kepi 1wo job
finalists in !he pipeline fo r futu re
openings. SimHarly, _bccausc o_flhc nursing shorugc in many
areas of lhc country, some hosp1-

71. 1als arc partnering w11h local high schools 10 encourage
sludcnl5 10 go in10 nursi ng.
Some fi rms creole unique. or idiosyncratic. jobs for people
w,lh 1alcnts 1he organization
can pul 10 use. ld1osyncra1ic Jobs arc created around a current
or new employee's unique expen-
cncc, knowledge. skills, in1eres1s, and abilities.6' Rather 1han
focusing on whether !here is cur-
rently an opening before evaluating available 1alcn1. the person
is hired and 1hen a Job ,s created
10 cxploll 1hc individual's strengths. For example. when
someone steps down from a posllion ,n
1hc Wh11e House. 11 is common fo r a consul ting or lobbying
firm 10 hire him or her in a ··consu h-
1ng .. role 10 1:ike advantage of their connections.
An additional advantage of a talcn1-oricn1ed philosophy 1s Iha!
11 can speed up 1he hiring
process and decrease the amount of time jobs s1ay unfilled.
With qual ified job cand1da1cs already
in 1hc advanced stages of1hc hiri ng process. hinng will be
faster when a pos11ion opens. Because
more lime is 1aken lo generate qualified job eandida1cs. a
deeper pool of cand idates is usually
created as well. This approach 10 filling Jobs can be a belier
str:tlegic choice than the 1r:tdi1ional

72. approach of wailing for a position 10 open. In fac1. al The
Container S1orc. store managers arc
required 10 invcsi 1wo 10 three hours per week interviewing job
cand idates. The idea is 10 help
the company auain il5 goal of never having to place a job ad
anywhere! Prcscrcened job cand1-
d01cs cm1 before 1hc nexl job opening e,en occurs. By
mainiaining a rosier of qual ified cand,-
dotc, 10 call on, even when seasonal employees need 10 be
hired, the home office's two- person
recru11ing s1aff docs nol need 10 gel involved.
65
Whether an organiz,ition' s 1alcn1 philosophy is talenl oriented
or Job oriented innucnccs il5
staffing s1ra1cgy. A 1alcn1-orien1ed philosophy of1en requires
orgamza1ions to recruit regionally
or na11onally. and 10 assess how candidates can meaningfully
con1ribu1c 10 !he company r:ilher
lhan evaluating candidates against predefi ned job
requircmenl5. A job-oriented philosophy has a
bcncr chance of a11rac1ing 1hc active. local job seeker who is
considering a job change or is cur-
rently unemployed lhan a11r:tc1ing lop wlent who could really
add "aluc 10 !he organilauon bu1

73. who pc1haps is already employed or would have 10 relocalc.
66
Whc lher a firm's staffing is proactive or re active will also
depend on 1hc degree 10 which
staffing is considered an important contributor 10 the
company"s business s1r:t1cgy. If !he firm
develops 11> busi ness slr:tlegy wi1hou1 cons1denng 1hc
stJtffing 1Ssucs related 10 it, 1hc staffing ,s
ri:ac1ive lf 1hc firm considers il5 staffing issues in conjunction
wnh ns business s1ra1egy. 1hen 1he
swffing decisions arc proac1ive and stra1cgie .
Which Jobs Should We Focus On7
Another a.spec! of a successful wlcn1 strategy in volves
1dcn11fying key jobs on which 10 focus
addi11onal a11cn1 ion and re.sources because of their
importance 10 1he company' s performance
and c.ccu1,on of j15 business strategy. Nol all Jobs w,tJTllnl
equal invcs1men1 in rccruitmcn1
or s1affing activilies A company" s key jobs arc 1ho,e 1ha1 m
some way crcalc value for 1hc
l'ROACTI VF. S TAff/, 'G
done lxforr utuatuuu or ,uur, o rnr

74. HF.ACT/VF. STAFFING
dont in r,rpo,u t IQ ntuatwru or 1uut1
JOB-OR/E..VTE.D STAFFING
111nng ,,, fill" Jpt'njir Jvb Opt'fl lfl/:
TA LE.NT-ORIE..VTE.D STA FF/, "G
rtrru111n,: and , , rn luring 1111hout a
Jprrific ;ob opfmnx
40
<
Ctu , - li r "' .inJ Sutfins ~ lrJIC'gtC"l • rt~'"f - l."
1
" ' 1 on M rctcnuon of chcnt~ busrnc,'i or the ._ 10 the ~cncrn I
Cltai l'r"!Jnitauon h contm,uting. ... ,at ion ' hcnc, er there 1s
pc rfom1ancc 'fl... 10cl - ' roJ -1 for the or~ani -,ab,1 Lll nt:'-'
capab1lluc:!I, or P u1. ~ n there 1, the potential 10 11npro vc
that rw,,, tty th< ,amc pu,i llO , .--IIJoii•
:inll,n~ JX-Oplc '-' orl.mg in th•· 3, er.ire ~ rfonn ancc le, cl of
lhosc C""'pl 1 - , uun b) r.11>1ng • • . "' O)'"-conmbuuvn to th<
of)'anlla
11
b tan uall) more of a com pani , product than do ~,
r ,ahn.•oplc ,c , u > f OIi,.,_ forcumpl<. 1 some ' r , __ , that

75. result ,n the h1nng o a greater number oftu-• ...,_
• ma1 be ,dcnlUIL-U gho,
,talTmg tmproi cm, nts ·
1
pcrfomung salc,pcoplc
__ , I and fc"cr o"cr· .
rcrtonmng ,.,c,peop c f h h ob, and roles arc cnucal to obtaining
us com.,.
must 1dcnu l " tC J "•,--~~,
Th< company taffin• the ,dcnuficd post11on, should hel p the
company ex •
ad,anuge Foc u,ing on bell«' • mn.•uui c ad1an1Jge If, fo r
example, FedEx ex-~
a.. . 1 "l' and enhance ti> co ,-- ---~,c,
,i,, uu>1n<>S sw.i c. mpact on profitabtllly, a 15 percent
1mproven1ent tn thew
arc as led " luch " ould ha, e 3 greot
1
c" their couners they w, 11 1den11 f y the councrs T!us
11 15 nt 1mpro,cmcn m ' · t us.
p1l01> or• percc I the cmploiees who a.re paid the most money
who cJc.cn
tralL'S the fact thot 11 1' not ncccs,on y "ho arc a lei component
of I alu~ creation.67 c
the most auenuon-ll is the cmplo)CCS
f Dell Computer cu, tomcr sm 1cc reprcscn1a11,·cs responsible
1
Imagine a g:~pqu:suon, about the company's products and

76. solving product JlrObl.:
an," cnng cu,tome be . the people ,n ,1 arc rc, ponsiblc for
markcung the eomno. •
This ,, a key pos1uon cause f h ,,..,) I
roJuc1> and keeping customers sau,ficd "1th thc,r purchase s.
So me o t e customer SCrvtc,
P I cf'cctll e 31 communicaung wllh callers to understand their
iss"H rc presenuu,·cs art extre me y ,, . ._._
and they provide clear and concct ans1<m and soluu ons. Other
cu~tomer_ service rcprescntaul't!
arc much less effectiie, taling much longer to undmtand callers
qucsuo~s and problems, 111d
,omctimcs pro11d,ng them 1111h inconcct or 1ncffcc111 c
an,11ers a_nd solu uons. ~!~rs 10 these
l011cr-perfonmng customer se rvice rcprescn1a111cs are
unhappy wllh the co~pany s mab1lny to
address the,r needs and arc less hlcl) to buy the product again or
recommend ti 10 others than.,.
callers spcakmg 10 the h1gher-perfonmng represen1a111cs. . . .
Because cmploiees in this pos, uon create 1<calth for Dell by
retmmng its customers 111d
,clhng them addmonal products. the staffing pr.ic uccs re lated
to the JOb are worth tn vesung ID.
If De ll can ,mpro1e 115 staffi ng S)>tcm to recnut and select
t.:11er customer service reprcstnta-
UCS " ho y. 11J be more effcc u,·c, the fi nn 1s c, cn more
hlely to n:tarn us c ustomers, cxpcncncc
belier 1< ord-of-mouth ad1 cnmng. and gene rate add111onal
bu,incss. If the a1erage produ~>TI)
of the customer sen 1cc rcprcscntau, cs also increase~ beca use
o f the new staffing syste m, fev.tt
customer sen 1cc rcprcscntau, es may be needed.

77. Is Stiiffing an lnvHtment or a Cost?
It ,s common for an organ1zauon's a>eragc cost per htre to be
mani thou.ands of dollars. One stud)
found that organ,,auons w,th 1,000 or more cmpl0)CCS spcnJ an
average of 43 days and S4.2&S
10 fi ll an open pos,u on.68 Staffing oc11v111es can be cxpc
ns11 c. Ho11e1cr, it's a mistake to view th,
c.pense purely as a cost to be minmu,ed TI,e investments made
,n recruiti ng, staffing, and retairun&
emploi ecs can lead to financial rctunts ,n tenns of higher
pcrfonnance und productivity for the ftrm,
stronger fulUrc leaders, lo1<er trnining cost,. and l011er recru
iting and staffi ng cxpe nd11ures duc IO
fc1< cr 1acancics. Just as effcc111e ,nve,tmcnts in marleung
un<l advcnising can lead to a largc:t and
more protitJble customer base, imc.stmcnts in sourcing and
recruiting cnn generate a greater number
of h1gher-qw1hty Job applicants " ho arc 1ntercs1cJ ,n Jo1n1ng
and contnbuting to the company.
If there can be meaningful pcrfonnance difference, among II orl
ers in the same j ob, swftnj
1s a good in1cstmen1. The best software developer at Apple ,s
at lea,1 nine times as producu1c11
the a1erage software engineer at other technology companie, ,
Nordsuom's best snlcs associatts
<ell at least eight limes as much as the a1erage sales assoc,atc
at other depanment stores. E1en the
best blackJack dealer at_ Caesar's Paloce in Las Vegas keeps
player.. play ing a t least fi ve umcs 11
long as the a, erage Stnp dcalcr.69 Jn1esung tn findi ng and
hmng abme average talent for tld
posn,ons can result in a sizeable re turn on in,estmcnt even if a
company needs to pay them at,oll
tlhc2 market a1crage Even '" jobs of medium complexity, top

78. performers have been fou nd to be
limes more producu,e than lo" e rf d 8
rf I th
· r pc onncrs, an 5 percent more productive than an a,cragc
pc ormer. n c most complexJ'obs-thc b hold. c I JO s insurance
<alc,pcoplc and account managers or examp c-a top pcrfonner ,s
127 70.,,,_,
arc not pie- in-the- k be percent more producuve thJn an
average performer. , ,,._
s y num rs Other rc<earch has h h ge"'
crate even larger dollar value d·,ffcre s. own t at h1 ghcr-q
uul11y_cmployecs can
nces '" pcrfonn,mce than m our 1ll ustrat1on.)1
C hJptcr 2 • Bll')inei~ and S1:iflins Strategics 41
In nJJ 1uon to
7
t:ooqmg proc.Jucuv11y, Marting ~y,tcm, ah o ha, c the potential
10 enhance
,n,pla) cc rctcnuoo - Thus. any benefits fro m belier staffing last
01 er the longer tenure of the
"''' hU'C";' cmploymcnl llh 1hc fi nn . funhcr increasing Lhc
company' s return on us s taffing
10,ci,.uucnt For most companies, mc,ung a liulc more money
rccru ilmg. hm ng. and retaining
t-,cn~r cmplo)CCS I hkcl) 10 lead lo a good n:t urn 1f the new
,ystcrn n:~ ults 1n the conwitcnt hir-
ing of ,1ar cm plo)'cc,

79. nus 1s not to ~.1.y that ~ta.fling cos15 arc un1mpon ant. Or1;a
n1L.a11ons must ~mkc a b:ilancc
bct"ccn ntalmg o long-run m c~tment and ach1cv1ng their shon
-tcnn crn,t goals Mo, t compa-
nies. parucul arly ,mailer ones, cannot pay unhmucd amounts
for opumal staffing systems. To
,llw,lratl! the possible return on mvcsuncnt for a staffi ng
syMcm, ~ sumc an organu.a t1on has to
hire J ,000 salespeople in the next year and that II has a cho,c.c
of 11<0 di fferen t >1affi ng systems
Bot h S) >tems have s1m1lar. but not 1dcn11cal . capab,hues.
One S)·,tem costs 5900,000 whil e
another com $1.3 milh on Because hu man resource
cxpcnd,turcs arc uea ted typically ns a cost.
many managers aod bustncsses .-ould opt for the cheaper system
Bu t 1< hich system is the belier
!ltr:itcgu: choice? As~umc lhe laucr system generates
employees who O.eragc SI0,000 more in
,ab per emp loyee per year than the cheaper system and 30
percent of those sale, IS profi t. In
the ,cry fi rst year, the $400,000 invc:.tmcnt in the more
cxpcns,vc staffi ng system would yield
$3 nu llion more 1n profit ($1 0,000 x 0.3 x 1,000), before
taxes. Thi, simple example 1llus1ra1cs
how dcch1ons may J1 ffor when viewi ng staf fi ng as nn
investment rather than a, an expcn~e
Technology and a looser labor market can reduce the average
hiring cost for an organi,a-
uon However. the costs su ll amount to a considerable tn·c
strncnt for most companies. ThJ.t
) a.Id, the coSl of the system is not what is m~ t 1mponant. The
most important issue is to deter·
mine the return on in vestment. which we JUSI did with our
prcv10us calc ufauon.s Unfortunalcly,
many compan ies don't take the ume to quanu fy the cost-