Phyllis Young Only
1 TANGLEWOOD CASEBOOK for use with STAFFING ORGANIZATIONS 8 th Ed. Kammeyer-Mueller Tanglewood Casebook to Accompany Staffing Organizations, 8e 1 TANGLEWOOD CASEBOOK To accompany Staffing Organizations, eighth edition, 2015. Prepared by John Kammeyer-Mueller Carlson School of Management University of Minnesota Minneapolis, Minnesota Telephone: 612-624-4171 E-mail: [email protected] Copyright ©2015 Pangloss Industries, Inc. 2215 Waters Edge Court Mishawaka, IN 46545 Prepared by John Kammeyer-Mueller 2 INTRODUCTION TO THE CASE CONCEPT Rationale for the Tanglewood Case Many of the most important lessons in business educ ation involve learning how to place academic concepts in a work setting. For applied to pics, like staffing, learning how concepts are applied in the world of work also allo ws us see how the course is relevant to our own lives. The use of these cases will serve as a bridge between the major themes in the textbook Staffing Organizations and the problems faced by managers on a daily basi s. The Tanglewood case is closely intertwined with tex tbook concepts. Most assignments in the case require reference to specific tables and e xamples in the book. After completing these cases, you will be much more able to understa nd and apply the material in the textbook. With this in mind, it should be noted that the case s are designed to correspond with the types of information found in work environments. Th is means that for many important decisions, the right answers will not always be eas y to detect, there will be more than one correct solution, and often the very information th at would make decisions easy is missing. Remember that ambiguity in any case corres ponds to reality; although it may be frustrating at first, you should remember that busi ness problems are themselves often confusing and require important judgment calls that don’t have any single “right” answer. Successful Case Performance A major component of the case method is learning ho w to apply and communicate classroom knowledge in a realistic setting. Each ca se should be prepared in the form of a report to be given to the top management team at Ta nglewood department stores. The following guidelines for successful case performanc e are useful for checking your work: 1. Are responses and recommendations grounded in good management practice? a. All responses need to incorporate what you’re learn ing in the textbook effectively and accurately. Show mastery of all relevant concep ts. b. Recommendations should be directly related to best practices described in the textbook, and make effective use of the information provided in the case. c. Recommendation should take potential problems into account based on what you’ve read, and incorporate methods to respond to these issues. 2. Does the report communicate effectively? a. Avoid grammatical errors and confusing sentences. b. Break the text into clearly marked subheadings so i t is easy for the reader to find relevant information. c. Explain technical concepts and statistics in a way that an intelligent reader who is not familiar with them could understand what is bei ng reported. d. Present tables cleanly with relevant information hi ghlighted for the reader. e. Explain why you chose to use information and data in the way t hat you did. Tanglewood Casebook to Accompany Staffing Organizations, 8e 3 CASE ONE: TANGLEWOOD STORES AND STAFFING STRATEGY Section Objectives The goal of this section is to help you learn more about the basic environmental concerns the Tanglewood Department Store chain is facing. Th is information will help you to understand how competition, strategy, and culture j ointly inform the effective development of a selection plan. Organization Overview and Mission Tanglewood is a chain of general retail stores feat uring items such as clothing, appliances, electronics, and home decor. The compan y operates in the moderate price niche, targeting middle- and upper-income customers . Tanglewood’s strategic distinction is an “outdoors” theme, with a large camping and ou tdoor living section in every store. The store also distinguishes itself by its simple, elegant, and uncluttered design concepts for the store and their in-house products. The comp any’s mission statement is: Tanglewood will be the best department store for cu stomers seeking quality, durability, and value for all aspects of their active lives. We are committed as a company to providing maximum value to our customers , shareholders, and employees. We will accomplish this goal by adhering to the core values of responsible financial management, clear and honest communicatio n, and always keeping performance and customer service in the forefront. Tanglewood was originally founded in 1975 by best f riends Tanner Emerson and Thurston Wood. The initial concept was a single sto re in Spokane Washington, named TannerWood, which sold a combination of outdoor clo thing and equipment that the pair had designed themselves. The employee handbook note s that, “Tanner and Thurston financed their early store plans with credit cards and personal loans from friends and family. They had so little money that they slept in sleeping bags in the back room and put every penny they made back into the stores.” The fi rst store’s unique merchandise offering and personable sales staff made them succe ssful quite rapidly, allowing Emerson and Wood to move out of the back room and add sever al more stores during the late 1970’s. The merchandise offerings expanded over tim e to incorporate more conventional retail items, while still retaining the elegant, ye t outdoors look for the stores overall. Emerson and Wood eventually decided to rename their store chain Tanglewood in 1984. Much more rapid growth began around this time. As E merson put it, “we worried for a long time that expanding would compromise our visio n of a small, personable shopping experience. We had always wanted to run the type of store that we would love to work and shop at. Around 1984, after we had 10 stores, w e realized we had developed a fairly successful blueprint for running stores with a stro ng base of employee participation, Prepared by John Kammeyer-Mueller 4 customer satisfaction, and profitability. So we dec ided to spread out to cover the northwest.” During the 1990’s the expansion strategy really too k root. Most of the expansion occurred by purchasing other existing stores rather than building new stores. Emerson and Wood had been heavily involved in the managemen t of the stores, but found that increasingly the corporate administration was a mor e pressing concern. The company arrived at a regional structure for its operations. Emerson and Wood took on the positions of CEO and President of the company, respectively, while a team of regional managers more directly oversee day to day operations. The co mpany currently has a total of 243 stores open in the states of Washington, Oregon, No rthern California, Idaho, Montana, Wyoming, Colorado, Utah, Nevada, New Mexico, and Ar izona. Prior to any further expansion, however, the compan y needs to consolidate its current management strategy. The process of growth has been very quick in the last 5 years, and has involved buyouts of several smaller chains of d epartment stores. While all the stores under the Tanglewood name have the same basic look, the management styles and human resource (HR) practices still reflect the historica l differences between stores. Wood noted in a recent interview with Business Monthly, “Tangl ewood really needs to slow down and take a hard look at our corporate culture. Righ t now, we need to consolidate and make sure we’re as close to the company’s original mission as we can be. Our success is due entirely to our strong culture—this is somethin g we need to hold on to.” These concerns have lead Tanglewood to bring in external human resources consultants like you to help centralize the organization’s practices. The brick-and-mortar stores have been extensively e xpanded through the use of an online order portal, starting in the early 2000’s. The eme rging plan for Tanglewood has been to continue to offer both the online and in-store expe rience, while maintaining a focus on their physical store locations as a competitive adv antage. Because the company has always emphasized customer service, and they have f ound that in-store sales tend to generate longer-term revenue streams as customers f orm personal relationships with expert salespeople, online sales are a supplement t o, but not a replacement for the in-store experience. Tanglewood does offer extensive in-stor e pickup options and assistance for any customer who purchases items online. In-store r eturns with immediate replacement for most items are also allowed, even if the items were purchased online. Because online sales are not considered a core area of competitive advantage for Tanglewood, the day-to- day administration of the online sales function was outsourced several years ago. Another major concern for Tanglewood has been the w estward expansion of companies like Kohl’s and Target. The possibility of more dir ect competition has lead Tanglewood to critically examine their HR policies and practic es. For staffing, in particular, the organization feels there absolutely must be a workf orce of committed, qualified individuals who will help carry the Tanglewood phil osophy into the future. Tanglewood Casebook to Accompany Staffing Organizations, 8e 5 Competition and Industry 1 The Tanglewood Department Store chain operates in t he nondurable general retail industry, which fits into industry 45211 as classif ied by the North American Industry Classification System (NAICS). This industry engage s in the sale of consumer goods including clothing, small appliances, electronics, and other housewares. The retail industry accounts for over $4 trillion in annual sa les. Recent estimates indicate that the retail industry employs approximately 15 million pe ople. A comparison of several top retail stores and outle ts is presented below. Note that although LL Bean has few physical stores and none i n the areas where Tanglewood operates, it is a direct competitor in terms of pro ducts offered. The operating revenues indicate total sales for these organizations, and t he growth rate tracks changes in the sales for each retail chain. The financials show that Tan glewood is a moderately sized organization with solid growth potential. Operating Revenues (in millions) Revenue Growth (36 month) Employment (in 1,000s) Employment Growth (36 month) Number of Stores Dillard’s 6,692 7.01% 40 2.83% 302 J.C. Penny 12,985 (26.0%) 116 (27.04%) 1,100 Kohl’s 19,031 1.21% 137 0.74% 1,150 LL Bean 1,521 1.40% 5 8.70% 30 Macy’s 27,931 11.71% 173 3.92% 840 REI 2,000 20.5% 10 10.76% 132 Ross Stores 10,230 30.1% 66 33.94% 1,200 Tanglewood 7,200 13.1% 53 6.75% 243 Target 72,596 7.73% 366 3.10% 1,900 1Information on the retail industry is adapted from Hoover’s, ( http://www.hoovers.com/subscribe/ ) and company financial statements. Prepared by John Kammeyer-Mueller 6 Competitive Response and Strategy The company’s specific niche is similar to that occ upied by Kohl’s or Target, appealing to middle- and upper-income consumers looking for c onvenience and reasonable prices. This means that Tanglewood uses a layout and provid es the same products offered of general merchandise retailers. Tanglewood also focu ses on stocking quality products, providing customer service, and a more designer app earance than discount stores. This strategy is further supplemented by the company’s t rademark “look” which involves an outdoors theme, complete with real wood décor and u se of natural colors. Like its competitors, Tanglewood has developed seve ral proprietary brands of merchandise which are designed to complement its lo ok. While the actual products are made by subcontractors, Emerson and Wood have perso nal responsibility for all products that are produced. Their own brands include Burford Kitchen, which includes wood- accented, rustic, sturdy kitchen utensils, and Wild erness Outfitter clothing and camping goods lines. The stores also have emphasized small home electronics, housewares, and bedding accessories. Despite the company’s effort to emphasize its weste rn appearance and theme, there is no shortage of high-technology innovations in the way that Tanglewood operates. As noted previously, they have worked hard to ensure that th eir web portals provide a clear guide to merchandise available in the stores. Through the ir “County Store” concept they have also made their stores a pick-up location for items ordered online. This allows them to utilize their low-cost shipping arrangements to the benefit of customers. Emerson notes, “We have a lot of consumers in places like rural Id aho, who don’t want to drive an hour to one of our stores and then find out what they wa nted isn’t available. The online County Store makes sure that if they want something, we wi ll have it in stock.” In addition, online shoppers who visit bricks-and-mortar locatio ns also often buy other merchandise in the stores. Organizational Structure The structure of most retail stores is relatively s imilar, and Tanglewood has essentially evolved to have a structure that looks something li ke the familiar organizational hierarchy. This appearance is deceptive, because em ployees at all levels of the corporation are encouraged to make suggestions rega rding operations. More than one major operational change has come from an employee suggestion. Each store is managed by a single individual who ha s three assistant store managers working beneath him or her. The Assistant Manager f or Softlines is in charge of all areas related to clothing and jewelry. The Assistant Mana ger for Hardlines is in charge of all non-clothing merchandise, including sporting goods, bath, bedding, and home decor. Another way to think of the distinction is that Sof tlines consists only of things that are worn, while Hardlines consists of nothing that is w orn. The Assistant Manager for Operations and Human Resources is primarily respons ible for activities, including Tanglewood Casebook to Accompany Staffing Organizations, 8e 7 security, clerical work, merchandise loading and warehousing, cashiers, and human resources management. Although the Assistant Manage r for Operations is technically in charge of the smallest number of employees, this te nds to be a more powerful position because it includes more managerial responsibilitie s, including staffing the store and training new hires. Department managers are in char ge of specific product groups such as electronics, women’s clothing, or shoes. For each s hift there is also a designated shift leader who completes most of the same tasks as stor e associates, but also has some administrative responsibility. Overall, with 1 store manager, 3 assistant managers , 17 department managers, approximately 24 shift leaders, and approximately 1 70 associates, there are around 215 employees per store. All employees, full or part ti me, are members of the core work force. Tanglewood does not extensively use a flexib le workforce, such as temporary employees. A core workforce is viewed as essential for the organizational values and culture, described below, that Tanglewood seeks to develop and maintain. Stores are organized into 12 geographical regions, with approximately 20 stores per region. Each region has a regional manager who over sees operations of the stores. The store managers report directly to the regional mana gers. There is considerable variation Store Manager (about 20 per region) Assistant Store Manager for Hardlines Assistant Store Manager for Operations and HR Assistant Store Manager for Softlines 6 Department Managers (Sporting goods, electronics, kitchen, bath, outdoor, domestics) 12 Shift Leaders (Two per Dept. Manager) 12 Shift Leaders (Two per Dept. Manager) 6 Department Managers (Women’s, men’s, misses, children and infants, shoes, perfume and jewelry) 5 Department Managers (Security, Administration, Warehouse, Cashiers, Maintenance) Operations associates (About 50 total—10 security, 5 admin, 10 warehouse, 20 cashiers, 5 maintenance/custodial) Regional Manager (12 total) Store associates (About 60 total—10 per department manager) Store associates (About 60 total—10 per department manager) Prepared by John Kammeyer-Mueller 8 between regional managers in how they run their HR practices. The tendency for some regional managers to encourage human resources prac tices which are counter to the Tanglewood philosophy is a major reason that an ext ernal consulting firm was brought in to centralize human resources. The breakdown of stores and employment by division is as follows: Division Area Covered Stores PCs PCs/S Employees 1 Eastern Washington 25 3,120,000 124,800 5,400 2 Western Washington 25 3,011,000 120,440 5,400 3 Northern Oregon 18 1,850,000 102,778 3,900 4 Southern Oregon 16 1,710,000 106,875 3,400 5 Northern California 23 3,000,000 130,435 4,900 6 Idaho 17 1,366,000 80,353 3,700 7 Montana and Wyoming 18 1,418,000 78,778 3,900 8 Colorado 23 4,550,000 197,826 4,900 9 Utah 19 2,351,000 123,737 4,100 10 Nevada 19 2,241,000 117,947 4,100 11 New Mexico 18 1,875,000 104,167 3,900 12 Arizona 22 5,580,000 253,636 4,700 Total 243 52,300 Note: PCs is the population of the area covered; th e abbreviation PC for Tanglewood means “potential customers.” The PCs/S is the numbe r of potential customers per store. Employee figures are rounded to the nearest hundred . Organizational Culture and Values Whereas many elements of the Tanglewood operational plan have been based on other firms within the retail industry, the company’s cul ture and values are distinct from most of its major competitors. From its inception, this company has emphasized employee participation and teams. At orientation, every empl oyee hears the philosophy that Wood and Emerson proclaimed as their vision for employee relations, “If you tell someone exactly what to do, you’re only getting half an emp loyee. If you give someone the space to make their own decisions, you’re getting a whole person.” Most retail stores have a strict hierarchy with ass istant store managers providing directives to their subordinates, and most associat es’ primarily follow orders. Tanglewood, on the other hand, has allowed each dep artment manager to formulate distinct methods for running their departments in c oordination with the employees they supervise. There is still a well-defined ordering o f job responsibilities, but efforts are made to involve employees in the decision process w hen possible. One of the most important cultural elements of the organization is an emphasis on “straight talk” in all areas of the business. The c ompany provides employees with Tanglewood Casebook to Accompany Staffing Organizations, 8e 9 information on the company’s share price and overall profitability for each quarter, along with other details about company activities. Profit -sharing for all employees is part of the company’s push to encourage employees to think like managers. In addition, mandatory weekly store meetings (one meeting for each shift) give employees a specific time to voice their suggestions for in-store improvements. Associates who make suggestions that are implemented by management receive financial bon uses. Department managers are also given financial incentives for successfully de veloping and implementing new policies and procedures, further reinforcing the pa rticipatory management style of the company. Every shift is run based on a team concept. While t he most senior associate is designated as a shift leader, the other members of the team ar e encouraged to provide ongoing suggestions. All employees share all tasks, so ther e are no designated “customer contact” or “display” employees. It is also expected that as sociates will make themselves available to help the other members of the team. Quarterly pe rformance evaluations include several items specifically reflecting the associates’ inter actions with other team members and initiative to improve the department. Because of the heavy emphasis on employee suggestio ns, Tanglewood’s upper managers have ample opportunity to observe the leadership an d decision making qualities of their associates. This is one of the main portals through which promotion and advancement are achieved. All new employees without retail experien ce, even those with college degrees who are targeted as having management potential, sp end a period of time working in the store as an associate. This is seen as a way of pre serving the company’s unique culture and values over time. Human Resources at Tanglewood The basic structure for human resources at Tanglewo od involves both corporate and store-level components. The corporate Staffing Serv ices function, shown above, is a division of the Human Resources Department. The Sta ffing Services Director supervises Vice President for Human Resources Staffing Services Director Employee Relations Director Retention Manager Recruiting Manager Selection Manager EEO Coord. Communications Manager Legal Compliance and EEO Manager Benefits Manager Salary Manager Labor Market Analyst Executive Coach Development Manager Training Manager Compensation and Benefits Director Training and Development Director Prepared by John Kammeyer-Mueller 10 three managers (for the areas of retention, recruit ing, and selection), plus an Equal Employment Opportunity Coordinator. The corporate S taffing Services function performs data analysis and design of staffing polic ies and programs. Data regarding recruiting practices, methods for interviewing, tes ting and selecting employees, and employee turnover are sent from the individual stor e to the corporate headquarters. At headquarters, the data are collected and statistica lly analyzed. Based on these analyses, specific recommendations are provided to the stores . For example, after data suggested that newspaper advertising for new recruits was bec oming less and less cost effective, all stores were given a strong recommendation to switch to an internet-based strategy. As another example, the employee selection specialists in the corporate staffing function developed a format for interviews that is now used as a part of the hiring process for nearly all stores. Each store is responsible for implementing recommen dations provided by corporate. The store operations and human resources manager is res ponsible for overseeing each store’s staffing, training, performance management, and equ al employment opportunity practices. As pertains to staffing, the manager of operations and human resources is responsible for planning, recruitment, and initial screening. Department managers interview finalists, then hiring decisions are made in conjunction with the assistant store managers. Promotion decisions up to the department manager level are made within the stores. Regional managers conduct the hiring for st ore managers, and work with each store’s managers to determine promotions to the ass istant store manager. Historically, the corporate staffing function has n ot been strong. Because of the participatory philosophy of the stores, the role of corporate HR was primarily to act as an advisor to each regional manager. The company’s pla ns for expansion have led to a change in this philosophy of late. Emerson’s direct ive to HR for this year is, “help us to develop a plan, a way of using all our human assets in the service of our philosophy, our customers, and our employees.” As the company expan ds, the need for a central planning body in staffing is seen as an important way to mai ntain the distinctive “flavor” of the Tanglewood experience. In addition, the sheer numbe r of stores means that local leadership is becoming inefficient. Centralization will also serve to create staffing operations efficiencies. Your role Your role within Tanglewood is as an external consu ltant for staffing services. You will report directly to Daryl Perrone, who is the Staffi ng Services Director, with final oversight for your work coming from Marilyn Gonzale z, who is the Vice President for Human Resources. Both of these individuals were rec ently hired personally by Emerson and Wood as part of their plan to centralize and im prove the human resources function. Perrone has extensive experience in managing staffi ng for department stores in New Jersey and New York, while Gonzalez has worked in a variety of corporate positions in the Pacific Northwest. Tanglewood Casebook to Accompany Staffing Organizations, 8e 11 The reports that you produce will be given to Perrone and Gonzalez, who will disseminate them throughout the organization. As su ch, although Perrone, Gonzalez, and other members of the human resources team are gener ally well versed in the terminology of staffing, the other individuals who read you rep orts will not be so familiar with the specific staffing terminology. This means that your reports should not contain excessive staffing terminology, and that when you do use spec ific staffing terms you should provide a brief explanation. Prepared by John Kammeyer-Mueller 12 Specific Assignment Details In this assignment you will be concentrating on sta ffing quantity and staffing quality strategies for Tanglewood. To begin the assignment, review the information in the case and provide a brief overview of the organization’s mission and values that will serve as a foundation for all other staffing activities. Also describe the types of individuals who are likely to fit well overall in the organization as a whole, and who will fit in the most common job categories. After establishing a clear sense of what is require d for person-job and person- organization match, refer to Exhibit 1.7 in the tex tbook. You will see that the Exhibit indicates a series of strategic staffing decisions: nine pertaining to staffing levels and four pertaining to staffing quality. Daryl Perrone, the Director of Staffing Services, is interested in your opinions about each of these dec isions as each pertains to Tanglewood. Review the textbook material that discusses these t hirteen decisions, and the material you have read about Tanglewood. Then consider each of t he decisions and briefly indicate which way you think Tanglewood should position itse lf along the continuum and why. For example, the first decision is to develop or ac quire talent. Indicate whether you think it is best for Tanglewood to focus more on acquirin g talent internally or externally, and why? Repeat this process for each of the staffing l evel and staffing quality dimensions. Tanglewood Casebook to Accompany Staffing Organizations, 8e 13 CASE TWO: PLANNING Section Objectives The planning process in staffing involves making fo recasts of an organization’s future hiring needs and developing methods the organizatio n can use to meet these needs. The process of planning involves a combination of forec asting labor needs, comparing these needs to the labor availabilities, and determining where gaps exist. After these gaps are identified, general plans for filling these gaps ar e enacted. Beyond the process of developing objectives for the number of individuals to be hired, planning activities often take the demographic comp osition of the workforce into consideration. Attending to the demographic breakdo wn of the workforce is important for a number of reasons. One is to ensure that the comp any has employees who can understand the perspective of the populations the c ompany serves. The second reason is to minimize concerns about Equal Employment Opportu nity violations 2. For both purposes, the current workforce can be compared to the demographic characteristics of other individuals who work in similar jobs. Planning for the State of Washington: Forecasting R equirements and Availabilities The Staffing Services Director, Daryl Perrone, has requested your assistance in the completion of an HR planning analysis for the 50 st ores in two regional divisions in the state of Washington. After these overall goals are developed for the state, the policy will be disseminated across all 50 individual stores. Da ta from the individual stores will then be sent to the corporate offices for analysis and r e-evaluation. The basic model for planning includes (1) forecasti ng labor requirements, (2) forecasting labor availabilities, (3) conducting environmental scans, (4) determining gaps, and (5) developing action plans. These steps are described in your textbook. Conducting an adequate human resources selection plan will requir e you to take all of these steps. Historical data from these two divisions have been presented in the transition probability matrix. Information on how to read transition matri ces is provided in your textbook. The transition probability matrix was developed based o n the historical staffing pattern for Washington over the past five years. A first stage of investigating staffing is to use the previous years’ staffing patterns as a preliminary forecast of labor requirements, the internal availability based on retention, internal promotions, transfers and demotions, and a determination of gaps by subtracting forecasted a vailabilities from future requirements. 2 It is important to note that a discrepancy between the current workforce and the available workforce is not sufficient to demonstrate an EEO violation. Prepared by John Kammeyer-Mueller 14 Table 1.1 Markov Analysis Information Transition probability matrix Current year (1) (2) (3) (4) (5) Exit Previous year (1) Store associate 0.53 0.06 0.00 0.00 0.00 0.41 (2) Shift leader 0.00 0.50 0.16 0.00 0.00 0.34 (3) Department manager 0.00 0.00 0.58 0.12 0.00 0.30 (4) Assistant store manager 0.00 0.00 0.06 0.46 0.08 0.40 (5) Store manager 0.00 0.00 0.00 0.00 0.66 0.34 Forecast of availabilities Next year (projected) (1) (2) (3) (4) (5) Exit Current Workforce Previous year (1) Store associate 8,500 4505 510 0 0 0 3485 (2) Shift leader 1,200 0 (3) Department manager 850 0 (4) Assistant store manager 150 0 (5) Store manager 50 0 Gap analysis Next year (projected) (1) (2) (3) (4) (5) Year end total (column sum) 4505 External hires needed (current workforce-total) 3995 Forecasting Labor Requirements The Washington market is very stable for Tanglewood . Most stores have been in existence for 10 or more years, and were indirectly managed by either Emerson or Wood when they were first established. Because of this s tability, the estimate for the coming year’s labor requirements is identical to the curre nt year. So, for example, they currently have 1,200 individuals working as shift leader, and expect to need 1,200 individuals to work as shift leaders for the coming year as well. Forecasting Labor Availabilities One primary source of information for immediate lab or availability at Tanglewood is their internal labor market. Table 1.1 shows that T anglewood has used internal promotions to fill many openings for the department manager, assistant store manager, and store manager positions. For example, it is pro jected that 16% of shift leaders will be promoted to the rank of department manager, 12% of department managers will be promoted to be assistant store managers, and 8% of assistant store managers will be promoted to be store managers. However, it also app ears that there will need to be considerable external hiring as well, since only 46 %-66% of employees stay in the same position over a one year period. To estimate a labor forecast, the proportion (perce ntage) of individuals for the next year is multiplied by the current workforce number. For the shift leader, there are 1,200 Tanglewood Casebook to Accompany Staffing Organizations, 8e 15 individuals in the position, of which, 50% will remain for the next year. This means that the projected availability is 1,200 × 50% = 600. Si milarly, 16% of the shift leaders will be promoted to be department managers, so 1,200 × 16% = 192. Conducting Environmental Scans The environment for staffing managerial employees a t Tanglewood in the state of Washington is fairly complex. Externally, there is a consistent supply of qualified individuals in the urban markets of Seattle and Spo kane. Individuals from these urban areas often are transferred to small towns as they move up the promotion chain. However, retail is often seen as an undesirable market for r ecent college graduates. Many know of retail work experience, and see it (partially corre ctly) as requiring long hours, low pay, and frequent conflict with lower-level employees. W hile these factors lessen as individuals move up the hierarchy, many individuals are reluctant to put in several years in the shift leader and department manager position s to be promoted. The labor market in the Pacific Northwest has been relatively “soft” in recent years, meaning that unemployment rates are high and it is usually difficult for individuals to find new jobs. This weakness in the labor market ha s made it somewhat easier for Tanglewood to find new candidates for the manageria l positions, but recent forecasts suggest that expansion in the professional and mana gerial sectors of the labor market may reduce the number of individuals available for thes e jobs. Internally, Tanglewood has relied on its experience d employees as a major source of talent. As noted earlier, the company promotes exte nsively from within. As a result, managerial employees often have significant experie nce with the company’s social environment and culture. This internal staffing str ategy is seen as a real strength for the company, because the possibility of being promoted is believed to increase retention of lower level employees. Determining Gaps The current focus of staffing is to fill the vacant positions, although the organization would like to take steps to reduce the turnover rat e for many of these jobs as well. During the planning phase targets are set for the number o f individuals who need to be hired. The process of turning these estimates into actual empl oyees will be covered in the recruiting phase. There are 1,200 shift leaders currently, so if 600 individuals stay, Tanglewood will need to hire 600 more. The calculation of gaps is d emonstrated in Exhibit 3.9 in the textbook; refer to this when you are determining ga ps for Tanglewood. Developing Action Plans Having developed a picture of the number of individ uals Tanglewood will need to fill their positions in the coming year, there are sever al important decisions to be made regarding how to fill these gaps. The company’s phi losophy for filling vacancies is a combination of tactics. Tanglewood has one manageri al track that promotes sales Prepared by John Kammeyer-Mueller 16 associates to be shift leaders, then promotes shift leaders to be department managers, and so on up the managerial hierarchy. An alternative m anagerial track is bringing in either recent college graduates or individuals who have ex tensive experience in another store chain directly into the assistant store managerial position. Regardless of where employees come from, the corpor ate staffing function endorses a strong commitment to developing long-range relation ships with its workers. Many employees initially have difficulty adapting to the unique culture of Tanglewood, so the company is not happy to see experienced employees w ho have been socialized leave. There are also concerns that having too many employ ees come and go will dilute the company’s strong culture. There are reasons why the company may consider alte rnative perspectives on the employment relationship in the near future. First, fluctuations in the economy have meant that the company carries excess employees during so me periods of the year, and has a deficit of employees during other periods. There is some seasonal hiring for store associates (e.g., hiring temporary employees for th e holiday season in December), but the managerial workforce numbers are typically fixed. S econd, to preserve the company’s culture, some have suggested having all new manager ial employees spend at least a little time in the Washington stores to get a sense of how the stores originally worked. These assignments would be short term in nature and would probably require a more contingent outlook for the employees they supervise. Representation Concerns for the Flagship Store in S pokane The problem of selection planning is made considera bly more complex because of Equal Employment Opportunity (EEO) requirements that fall on organizations that do business with the federal government. Because several Tangle wood locations are near military bases or government offices which have expense acco unts for general merchandise items at Tanglewood, all staffing must be done consistent with the OFCCP affirmative action requirements. In the current case, Tanglewood needs to use information from their staffing records to examine whether the company has a disparity in outcomes for different groups of employees. When the proportion of protected classes being hired or currently employed falls below the proportion in th e labor market, this may indicate intentional or unintentional discrimination in hiri ng and promotions that will need to be addressed through affirmative action planning. Ther e are also growing concerns within the organization that a combination of rapid growth and high turnover threaten to create real problems in terms of the demographic breakdown of employees at the organization. Acting as part of a team of staffing professionals, you have been asked to analyze the hiring and promotion activities of Tanglewood as th ey relate to the issue of disparate impact. The first level of disparate impact analyse s for the purposes of OFCCP reporting and affirmative action planning are always done at the establishment level. An establishment, for Tanglewood, is a single store. Tanglewood Casebook to Accompany Staffing Organizations, 8e 17 This analysis will concern the corporate flagship store in Spokane, Washington. This is the largest location within the Tanglewood chain an d serves as an example for all other locations. The store has approximately 75% more emp loyees than an average location, making for a total of 30 department managers, 42 sh ift leaders, and 300 store associates. There are five assistant store managers and one sto re manager. The primary concern for representation data is in the groups of department managers, shift leaders, and store associates. To assess the problem of discrimination, data from the previous year’s employees stocks in Spokane were assembled. The data on the next pag e are broken into two tables. The first shows the company’s current employee availabi lity data, and the second provides a template for comparing incumbency to availability. Analyzing utilization of protected classes from the labor market requires comparing the availability of protected classes (i.e., the propor tion of the available work force who are members of protected classes) to the utilization of protected classes (i.e., the proportion of those hired or employed who are members of prote cted classes) for each job. You can find additional information on this topic in your t extbook. In a stock analysis, data from EEO-1 reports conduc ted by the Equal Employment Opportunity Commission are used to determine how ma ny people in a certain region are available to do the job (including those currently employed in similar jobs). The data for the current analysis comes from the job patterns fo r minorities and women in private industry tables, which were specifically designed b y the government for the purpose of conducting EEO analyses. The most recent website fo r this information is below: http://www1.eeoc.gov/eeoc/statistics/employment/job pat-eeo1/ The appropriate data can be found through the following steps: 1) Go to the website above 2) Indicate that you want the 2012 tables 3) Indicate that you want data for States, by NAICS-2 4) Indicate that you want data for Washington 5) Indicate that you will select the industry of Retai l Trade 6) The appropriate table should be displayed. Store associates and shift leaders are considered, for the present analysis, as sales workers, while department managers are first/mid-le vel officials and managers. The Procedure for Developing an Affirmative Action Plan Tanglewood’s internal staffing policy as recently a rticulated from central management is to retain as close a correspondence between their c urrent representation and the available workforce. The primary goal for this year is to foc us attention on achieving better numbers for gender representation, but they would l ike to examine other demographic groups in the future. Prepared by John Kammeyer-Mueller 18 The source for the external data in all cases is fr om the EEOC data described earlier. The source for internal data is the current workforce o f the flagship store. To determine the availability for each job category, the raw statist ics for percentage of female and minority available employees are multiplied by the value weight, and then these weighted statistics are added together within each job categ ory. As such, the internal pool of potential shift leaders includes all current store associates, and the internal pool of potential department managers includes all shift le aders. Table 1.2 Determining Availability Raw Availability Rate Value weight Weighted Statistics Female Minority Female Minority Store associates External 60.5% 24.8% 100% 60.5% 24.8% Shift Internal 55.7% 21.0% 92.4% 51.5% 19.4% Leaders External 60.5% 24.8% 7.6% 4.6% 1.9% Total 56.1% 21.3% Department Internal 42.9% 16.7% 65.7% 28.2% 11.0% Manager External 40.2% 18.2% 34.3% 13.8% 6.2% Total 42.0% 17.2% The availability data are taken from Table 1.2 and then used for determining if some demographic groups are underrepresented in the work force of the flagship store, and also for developing placement goals. A shortage exists i f there is a discrepancy between the current workforce and the available workforce as ca lculated by the ratio of the current workforce divided by the current workforce. As show n in Exhibit 3.18 in your textbook, if the incumbency percent is below 80%, the organiz ation is encouraged to establish a goal of moving their demographic representation in line with the available workforce. To estimate this proportion, the incumbency for female s is divided by the availability for females, and the incumbency for minorities is divid ed by the availability for minorities. Table 1.3 Comparing Incumbency to Availability and Annual Placement Goals Female Incumbency Female Availability Incumbency percent? Establish goal? If Yes, Goal for Females Minority Incumbency Minority Availability Incumbency percent? Establish goal? If Yes, Goal for Minorities Store associates 55.7% 60.5% 92.1% No goal 22.3% 24.8% 90.0% No goal Shift leaders 42.9% 56.1% 76.5% Set goal 56.1% 16.7% 21.3% 78.4% Set goal 21.3% Department manager 30.0% 42.0% 71.4% Set goal 42.0% 16.7% 17.2% 97.1% No goal Tanglewood Casebook to Accompany Staffing Organizations, 8e 19 Specific Assignment Details For the store manager group, you will analyze the i nformation and prepare a report showing the results of the Markov analysis and the EEO investigation. The Director asked you to address these questions in your writte n report: 1. Currently the organization expects that their forec ast for labor requirements is essentially constant from the previous year. Based on this assumption complete the five stages of the planning process: a. Currently the organization expects that their forec ast for labor requirements is essentially constant from the previous year. This m eans the forecast for next year will be taken as given. b. Fill in the empty cells in the forecast of labor av ailabilities in Table 1.1. c. Conduct an environmental scan. Based on the environ mental data, what factors in the environment suggest Tanglewood might have diffi culty filling their vacancies in the future? d. Compute year end totals for each job in Table 1.1 a nd do a gap analysis to determine where shortages will occur in the next ye ar. e. Develop a preliminary statement of the action plan for hiring for Washington next year. This should be an overview of the number of i ndividuals needed to meet projected staffing levels for various positions tha t can be given to store managers. Make sure that your recommendations take the strate gic staffing levels issues from the introductory case into account. 2. Examine the percentages of employee representation across demographic categories for Tanglewood and the available labor m arket for Table 1.3. Are there any particular classes or jobs where the representation within Tanglewood appears to be out of line with the available workforce? What does the pattern suggest to you? 3. Based on your analysis and the affirmative action p lan, do you think the company should engage in a specific strategy to change thei r recruiting and promotion practices? Do you think it is realistic for the company to try to meet their affirmative action goals in this process in a single year? What are the pros an d cons of using internal promotions vs. external hiring to rectify the problems with gender and ethnicity representation in supervisory positions? 4. In addition to the specific targets for employee re presentation for the Spokane flagship location, Tanglewood wants to use this opp ortunity to establish estimates for the entire chain’s staffing policy regarding demographi c representation of the workforce. How do you think individual stores can respond to o verarching organizational objectives? Prepare a memo to be disseminated to the individual stores that gives a sense of your targets for the organization as a whole, and also g ives the stores advice on how they can assist in narrowing any representation gaps you fin d through their recruiting, hiring, and promotion practices. Prepared by John Kammeyer-Mueller 20 CASE THREE: RECRUITING Case Objectives Recruiting is the first stage in which organization al plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the method s available and balance out the costs of each method with the organization’s needs. The recruiting case provides an opportunity to see how staffing managers develop plans for recruiting efforts. You will develop a recruiti ng strategy and a recruiting guide for the store associate job. The case also demonstrates how you can use organizational data to determine what the best methods for recruiting are. Finally, you will have an opportunity to develop various forms of recruiting messages tha t will encourage individuals to apply for jobs as sales associates at Tanglewood. Primary Concerns Regarding Recruiting Like any retail organization, there is a constant n eed for new employees at Tanglewood because of turnover. In a typical year, approximate ly 50% of the sales associates will turnover. The process of recruiting is therefore of great concern for managers in the field. However, up to this point, the organization has not had any centralized method for recruiting new employees. As part of the consolidat ion across stores, Tanglewood is now encouraging a systematic review of their recruiting policies that will ultimately result in a better recruiting system for store associates. Staffing services has made very few decisions regar ding how recruiting should proceed. Each store has been encouraged to ensure that their recruiting methods attract a culturally and personally diverse group of applicants. Beyond this general directive from the corporate offices, however, there is not very much direction for stores regarding how they should be recruiting new store associates. Regional managers occasionally discuss ideas for how to recruit new employees, but as you will s ee, they have some very distinct methods for recruiting in practice. Methods of Recruiting Available There are five primary methods of recruiting store associates used at Tanglewood in Washington and Oregon. For additional information r egarding these sources of recruiting check your textbook, where advantages and disadvant ages of each method are described in greater detail. All of the specific strategies f or recruiting are supplemented with media- based and in-store solicitations for employment. Th e media-based strategy includes internet banner advertising, social media messages, and in-store signs informing patrons of potential job availability. Tanglewood Casebook to Accompany Staffing Organizations, 8e 21 Applicant Initiated The most traditional method for recruiting used by Tanglewood is through applicant- initiated processes. Job applications are completed through either the internet or an automated telephone process. This allows interested individuals to apply without actually having to go into the stores. Paper applications ar e still available at stores as well. Media expenses are a combination of initially setting up a contact with a media outlet, developing an advertisement, and the price of proce ssing materials and interviews for each applicant. Referrals Employees are encouraged to refer their friends to apply for work at Tanglewood as well. The referral process is enhanced by providing curre nt employees with $100 for each friend they refer who is hired. Referral expenses a re a combination of creating and maintaining records, the price of processing materi als and interviews for each applicant, and the payment for each individual who is hired. Kiosk An alternative method of recruiting that minimizes processing costs is to have a computerized kiosk in the main entrance to the stor es. The kiosks look somewhat like ATM machines, and feature a fully functioning keybo ard and touch-screens. Unlike media advertisements and internet applications, the kiosks provide opportunities for applicants to also briefly interact with store empl oyees after they complete their materials. Because the entire application process i s completed electronically and scored automatically, there is no material cost, although there is still an initial processing and interview cost. Each kiosk costs approximately $40, 000. State Job Services In urban markets with higher pools of availability of unemployed individuals, state job services have also been used occasionally to find n ew applicants. The employment service is provided with a set of qualifications re quired for work, and the employment services agency assists in providing initial screen ing and hiring recommendations. Training is partially subsidized through tax incent ives. In areas which have less centralized population, the job service option is l ess feasible. Essentially, the cost of the job service is for creating and maintaining an init ial contact, with other costs being roughly half of those for traditional media sites. Staffing Agency One method that has been explored recently is the u se of an external staffing agency. Essentially, this is outsourcing the actual selecti on of candidates to StoreStaff, which is a large organization that specializes in locating wor kers for the retail industry. Many organizations use StoreStaff to find temporary empl oyees, or provide trial employment to StoreStaff employees as part of a temporary-to-perm anent arrangement, but for Tanglewood, individuals recruited through StoreStaf f are directly hired as part of the core workforce. Because StoreStaff provides some trainin g to their pool of candidates, they are less expensive to train, but the overhead costs of providing money to StoreStaff for locating and screening these candidates does make t his method quite costly. Prepared by John Kammeyer-Mueller 22 The Situation at Tanglewood – Four Regions, Four Re cruitment Policies As noted in the introduction, decision making for s taffing activities has recently become centralized within the staffing services division. A major question that arises as a result of this consolidation is how to determine which HR pol icies should be left in the hands of each individual location, and how much should be ta ken over by corporate HR. The recruiting function is of particular interest since there is such wide dispersion in how individuals are recruited. Data is available from t he divisions in the form of numerical estimates of costs per individual processed, employ ee retention, performance on a pre- hire work-sample test which is given to all employe es, and some informal interview data. Tanglewood Department stores were first established in the western area of Washington and then moved southwards into Oregon, then spread eastwards into the Rocky Mountain States. Many of the policies implemented in the Wes tern Washington locations were applied directly in the Rocky Mountain States. Howe ver, because the initial expansion was less well-coordinated, there is substantial var iety in the staffing policies being followed in the stores in Washington and Oregon. Western Washington (Region 1) It has historically been the largest and most profi table area, with a total of 25 stores in the region centered around Seattle. In fitting with the organization’s founding philosophy, the stores in Western Washington are run largely autono mously. The current head of the Western Washington division advocates a philosophy of individual autonomy and empowerment. Generally this division has been viewe d as highly committed to the core corporate culture, although this passion for the mi ssion has sometimes meant paying less attention to careful management of financial concer ns. Because of its size and the large amounts of financial resources available, leadershi p of this division has been one of the most powerful positions within the organization. Western Washington uses a variety of recruiting met hods. The primary methods of recruiting are referrals from current employees. In the Seattle area, the division also makes heavy use of job services. Over time traditio nal media methods of recruiting have been reduced, but are still used occasionally. Fina lly, to fill in those positions that are not met with the other three methods, the kiosk method is used. Eastern Washington (Region 2) This was where the company began. The split of Wash ington into Eastern and Western divisions came early in the store’s history, but th eir physical proximity and high overlap between management across the areas has led to very similar management styles. The Eastern Washington division is approximately the sa me size as Western Washington, with 25 total stores. However, with the exception o f the area around Spokane, the majority of this area is much more rural. To a large extent, the Eastern Washington division pioneered all the policies used by Western Washington, although the overall policies h ave been tempered by geographical Tanglewood Casebook to Accompany Staffing Organizations, 8e 23 differences. The job service method has not been successfully implemented on a wide scale. Instead of using this method, this division uses more traditional media advertising. Northern Oregon (Region 3) Unlike Western Washington, there is a very differen t philosophy of operations in Northern Oregon. Northern Oregon has been run very “professionally” for years, with most decisions carefully weighed against their fina ncial consequences. Administrative decision making is hierarchical, with specific task s assigned at each level of the organization’s structure. The current top administr ator for this area, Steven McDougal, has a reputation for being a technocrat, and has la rgely worked to maintain the system he inherited when he first took over five years ago. T here are 18 stores in this region. The recruiting methods of the Northern Oregon divis ion fall into three major categories. The main methods are media and in-store kiosks. Thi s division has also used staffing agencies lately. The division explicitly rejects th e use of employee referrals, claiming that the use of signing bonuses leads to the hiring of u nqualified individuals who are selected without sufficient qualifications due to favoritism . Southern Oregon (Region 4) Southern Oregon is unique among the areas within th e Pacific Northwest in that it has remained relatively small, with only 16 stores in t he division mostly concentrated in the Eugene area. However, there is also a growing push to increase concentration in Southern Oregon as a first step to establishing more stores in Northern California. This area is very innovative across the board in its human resources practices. The innovative character of Southern Oregon is reflected in their recruiting pr actices. They have relied primarily on a combination of staffing agencies, referrals, and ki osk advertising. All three of these methods were first tried in this region. Quantitative data Data are available from the four divisions of the o rganization on the number of individuals who applied for work, the number of ind ividuals who are qualified for the position, the number who actually receive job offer s and accept them, and the number of number of individuals who remain with the organizat ion at the 6 and 12 month point after hire. Complete data on the recruiting metrics is co ntained in Appendix B. Table 2.1 Estimated costs for recruiting methods Fixed costs Applicant Referrals Kiosk Job service Agency Cost of setup (per store) $ 20,000.00 $ 30,000.00 $ 20,000.00 $ 40,000.00 $ 70,000 Variable costs Materials cost per applicant $ 5.00 $ 10.00 $ 1.00 $ 5.00 $ 10 Processing cost per applicant $ 30.00 $ 30.00 $ 15.00 $ 15.00 $ 30 Additional pre-hire costs $ 20.00 $ 200.00 $ 20.00 $ – $ 20.00 Orientation and training $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 1,000 $ 1,000.00 Prepared by John Kammeyer-Mueller 24 Another Angle on Recruitment: Manager Focus Groups As part of the information gathering process, large scale focus groups have been conducted with department managers. Tanglewood cont acted a market research firm to conduct the focus groups, and Tanglewood provided a detailed summary of the major findings. While managers differed considerably in t heir perceptions of the effectiveness of the different methods, their core concerns were generally quite similar, and can be grouped into four major categories: 1. The most pressing concern for many managers is redu cing employee turnover. Although Tanglewood has typical retention rates for a retail chain, the importance of culture and cooperation in the Tanglewood philosoph y means that new employees often are not fully integrated into the company’s culture until several months have passed. In short, typical retail turnover is not acceptable fo r Tanglewood. This is seen as an especially dangerous situation as the company expan ds, since it threatens to undermine the unique elements of the company’s approach to re tail. 2. There is an excessive lag between the initial conta ct between many applicants and the actual hiring decision, leading many qualified individuals to drop out of the process. A few managers have suggested that finding a way to concentrate on methods that do not have this problem would be beneficial. The issue of lags in initial contacts and hiring is discussed in your textbook. 3. The recruiting process is administratively cumberso me. Managers want to find ways to reduce the amount of time they have to spen d with assessing new candidates. This was partially a point of contention between ma nagers, because some argued that using more computerized applications would be a goo d idea, while others felt this might give applicants the wrong impression about the orga nization and its methods. 4. Many new hires without retail work experience do no t recognize the importance of positive customer service for sales, and trainin g is often does not solve the problem. Several managers noted that they had discharged new hires for providing inappropriate customer service. A particularly frequent problem i s new employees becoming frustrated with customers and refusing to assist them or behav ing in a hostile manner. Some managers specifically suggested that new employees needed a more realistic introduction to the difficulties of the customer service role. O ther managers suggest that a more positive message would be helpful, since it will dr aw in more qualified individuals. 5. Many managers also report that they would like to s ee messages more specifically targeted to the types of people who are likely to f it in with the Tanglewood stores culture. Managers note several elements of the organization’ s culture (which you read about in the introductory case) that they think should be pa rt of the recruiting strategy. Tanglewood Casebook to Accompany Staffing Organizations, 8e 25 Specific Assignment Details Analyze the information from the recruiting data an d prepare a report showing the results of the analysis for your director. 1. Start by developing a strategic vision for recruitm ent at Tanglewood. First, it is important to specify the types of individuals that need to be recruited. Describe both the ideal types of individuals for Tanglewood based on person/job and person/organization fit factors. Also describe goals for the speed of t he process, as well as the time frame over which recruiting will take place. 2. Evaluate the various methods of recruiting in terms of whether they seem more like “open” or “targeted” recruiting, using the inf ormation in the book to help you make this decision. If some methods seem more “targeted, ” whom do you think they target? For each method, also describe the extent to which the individuals attracted by each method are likely to match the set of goals for rec ruitment you provided in response to the first question. 3. Evaluate the job and organizational characteristics that Tanglewood can offer to candidates. What are the reasons why an applicant m ight want to work at Tanglewood compared to the other jobs that might be available for similarly qualified individuals? Are there job and organization characteristics that mig ht be less desirable? The question of realism in the recruitment policy has also been rai sed in focus groups, and some respondents are concerned that the positive feature s of the organization may not also describe some of the difficulties front-line retail employees face. Write one paragraph proposals for targeted, realistic, and branded recr uiting messages for Tanglewood’s customer store associate positions that the company can consider. Conclude by outlining the traditional arguments for and against each recr uiting message. 4. For each division use the data tables provided in A ppendix B to estimate how each strategy fares in terms of metrics. Provide a one-page summary of the essential results of the various data tables you have been pr ovided and what it means in practice. 5. Northern Oregon has suggested that the other divisi ons of the company use a policy of using kiosks and staffing agencies rather than using the more “touchy-feely” method of relying on referrals. Does this division have a point? What would the effect of other regions increasing their use of the more form al methods of hiring be? 6. Tanglewood’s top management is highly committed to improving customer service quality, and proposes that simply finding t he cheapest way to hire is not sufficient. Besides costs and retention, what other measures of employee performance would be good “bottom line” metrics for the quality of a recruiting method? How might the managerial focus groups’ concerns fit with thes e alternative considerations? Prepared by John Kammeyer-Mueller 26 CASE FOUR: MEASUREMENT AND VALIDATION Case Objectives Once concrete goals for hiring have been establishe d and applicants have been generated, the most important part of the staffing process is developing methods to identify individuals who will be the best performers on the job. Anything that identifies good potential performers is a “predictor.” This include s interviews, standardized tests of knowledge, personality measures, job trials, and so on. Although finding good predictors requires intuition about the job, the organization, and the type of people who are going to apply, demonstrating which predictors are most effe ctive requires clear quantitative skills as well. In this instance, you will review several types of evidence related to predictors and job performance and select a mix of predictors you thin k will work well. Developing a good selection strategy also means thinking of the proce ss from the applicant’s point of view. The greatest selection system in the world is not e ffective if it scares the best applicants away. This case is an opportunity to look at the ty pes of measures (found in Appendix C) that are often used in the selection process and de termine how applicants might react to them. Hiring for the Store Associate Position Two years ago, Marilyn Gonzalez instigated a thorou gh assessment of the hiring practices in the Tanglewood stores following compla ints from many store managers regarding the quality of employees. Results were no t encouraging. The current methods for selection received negative reports from manage rs. Many have noted that their current employees deliver suboptimal work, fail to apprecia te the organization’s culture, and have difficulty working in teams. This sometimes me ans that they have to fire poor performers, which is not good for morale in a team- based organization. There are few selection methods traditionally used at all Tanglewood stores. The first method for selection is an application blank as sho wn in Appendix C. Applicants provide some basic information regarding their employment h istory and education, along with other simple contact information. Ideally, Tanglewo od would prefer to contact former employers to get job performance history informatio n, but in practice, very few former employers give much more than dates worked and job titles because of concerns about being sued for disseminating damaging information a bout their former employees. In practice, then, the only useful information Tanglew ood obtains from the application blank is the number of years of work experience a p erson has and the highest degree they have completed. The process of selection begins when the applicants turn in their application blanks. These forms are reviewed by the Assistant Store Man ager for Operations and HR, who Tanglewood Casebook to Accompany Staffing Organizations, 8e 27 will also conduct brief interviews. The initial application interview is generally brief and consists mostly of efforts to confirm and clarify i nformation in the application blank. Those who make it past this stage of the process ar e termed “candidates.” A more substantial interview occurs with the candid ates who are referred to the department manager. There is a relatively loose pro tocol for how managers should conduct the interviews. Tanglewood provides a list of suggested interview topics, including, “tell me about your previous work perfor mance,” “explain your philosophy of customer service,” and “describe a time when you wo rked on a team.” Managers are encouraged to develop a warm atmosphere for the int erview to send a positive message about the company culture as well. Questions are fo rmalized, although there are no keys for managers regarding what the “right” answers are . The form used for interviews is also supplied in Appendix C. Approximately 30% of candid ates who make it to this interview phase go on to become finalists. Final approval for hires also must come from each s tore’s manager for operations and human resources. The last stage before job offers a re provided includes a background check and some paperwork. Nearly all finalists go o n to receive offers. Proposing an Alternative to the Current System Based on negative feedback from managers, a corpora te committee determined that an ideal solution would require an organization-wide s hift to a more detailed selection system. The interview process has been deemed “esse ntial” by most managers, and they are resistant to anything that would modify the int erview process. As a result, approximately one year ago the staffing services de partment initiated a search for good predictors of sales associate performance that woul d create minimal additional administrative burdens for managers. In the course of this search a number of new methods were brought to the organization’s attentio n. All of the materials described in this section are presented in Appendix C. Retail Market Knowledge Exam The retail market knowledge exam is a set of quest ions related to the retail industry and Tanglewood’s unique position in the in dustry. Several of the questions are related to basic knowledge of marketing principles, while others address the factors that separate Tanglewood from other competitors in the i ndustry. This exam was developed in house by the staffing services and marketing divisi ons. Marshfield Customer Service Biodata Questionnaire a nd Essay Biodata exams are questions for significant life e xperiences that are potentially associated with performance at work. Marshfield Tes ting Corporation has given life experiences interviews to thousands of individuals, and based on this huge sample of responses, developed a set of occupation-specific l ife experiences that they have identified as being associated with job performance . The test costs $10 per applicant. Newer versions of the test are available which can be administered via computer, or through the stores’ in house kiosk system. The newe r versions carry a more substantial Prepared by John Kammeyer-Mueller 28 fixed startup cost, but do not carry a “per applica nt” cost. The essays are machine scored in a manner similar to résumé scoring software. Th e customer service questionnaire and essay is two times longer than the sample shown her e, but the topics are the same. Marshfield Applicant Exam The Marshfield applicant exam is a test designed t o capture problem solving abilities, fluency with numerical processes, and wo rk comprehension. Marshfield Testing Corporation will administer variations on this test to several thousand individuals per year in contexts ranging from managerial selection to staffing for clerks at convenience stores. Like the Marshfield Biodata Questionnaire a nd Essay, this test can be administered either online or in person. The custom er service questionnaire and essay is four times longer than the sample shown here, but t he basic topic items are the same. Personality Exam Daryl Perrone conducted a thorough reading of the literature on personality psychology during his undergraduate major (he had a concentration in industrial/organizational psychology at Michigan St ate University). Based on this knowledge, he independently developed a 20 item mea sure designed to capture the constructs of conscientiousness and extraversion. H e believes that these are the two personality traits that will be most relevant for t he position of a retail clerk. The Validation Procedure After assembling these new predictors, 10 stores we re selected from the Seattle area to serve as a “test” area. Over the course of the last year, all proposed employees have been administered all the new selection tools during the hiring process. Stores were informed that they would be part of the new staffing system through a corporate memo personally signed by Emerson and Wood. This personalized memo was designed to impress on store managers the importance of gathering complete and a ccurate data on all employees. As part of the trial process, Tanglewood has also c ollected information from all stores that were not engaged in the pilot program. The rea son for this use of supplemental data is to investigate whether the pilot was conducted o n a representative sample of stores. Each store compiled all the archival data from thei r computer databases and then sent it to the corporate offices. In the course of this pro cess, it was noted that stores were often not keeping very complete data, so that information on selection outcomes was available for only about half of the nearly 25,000 employees hired in the past year. Several types of performance measures are kept for all employees at Tanglewood as part of their annual performance reviews. The first meas ure is citizenship performance , which refers to how well employees perform well as team m embers, cooperate with store policies, and generally set a positive tone for the workplace. Citizenship for each employees is rated on a scale from “1=very poor org anizational citizen” to “5=excellent organizational citizen.” Absence is a simple count of the number of days on which an employee did not show up for a scheduled work shift or was more than ½ hour late for a scheduled shift. Performance is a direct measure of completion of assigned work tasks Tanglewood Casebook to Accompany Staffing Organizations, 8e 29 and effort on the sales floor, as rated by the employee’s supervisor on a scale from “1=very poor task performance” to “5=excellent task performance.” Finally, promotion potential is a manager’s subjective impression of h ow likely it is that they will recommend an employee for promotion to a higher lev el in the organization at some point in the future. To estimate the validity of the current and propose d selection methods, the data regarding employee performance were taken from the organizati ons’ human resources information systems and several statistical analyses were perfo rmed. The statistical analyses were performed in two separate stages. Both steps used a predictive validation design, meaning that predictor data measured at the point of hire w as correlated with performance data one year later. For the predictive design, only intervi ews and application blanks were actually used as part of the selection process. The first stage of the statistical analysis was to estimate correlations between the archival measures of education, work experience, and manager ial interviews and the measures of citizenship, absence, performance, and promotion po tential. These data are shown in Table 3.1. The top row for each predictor shows the correlation between the predictor and the corresponding work outcome. The p-values repres ent the statistical significance of each correlation. The second stage of the statistical analysis was to estimate correlations between the traditional predictors (education, work experience, and managerial interviews) and the measures of citizenship, absence, performance, and promotion potential, along with correlations between proposed predictors (retail kn owledge, biodata, applicant exam, conscientiousness, and extraversion). These data ar e shown in Table 3.2. Prepared by John Kammeyer-Mueller 30 Table 3.1 Data from Stores Employing the Traditiona l Selection Method Citizenship Absence Performance Promotion potenti al Education Correlation 0.03 -0.02 0.15 0.17 p-value < 0.01 0.03 < 0.01 < 0.01 Work experience Correlation 0.17 0.07 0.22 0.25 p-value < 0.01 < 0.01 < 0.01 < 0.01 Interview score Correlation 0.13 0.01 0.04 0.32 p-value < 0.01 0.26 < 0.01 < 0.01 N=12510 Table 3.2 Data from stores employing the proposed m ethod Citizenship Absence Performance Promotion potenti al Education Correlation 0.01 -0.01 0.08 0.14 p-value 0.77 0.77 0.02 < 0.01 Work experience Correlation 0.04 -0.04 0.16 0.18 p-value 0.25 0.25 < 0.01 < 0.01 Interview score Correlation -0.02 0.03 0.01 0.16 p-value 0.57 0.39 0.77 < 0.01 Retail knowledge Correlation 0.02 -0.07 0.12 0.33 p-value 0.57 0.04 < 0.01 < 0.01 Biodata Correlation 0.17 -0.17 0.22 0.34 p-value < 0.01 < 0.01 < 0.01 <0.01 Applicant exam Correlation 0.03 -0.02 0.26 0.34 p-value 0.39 0.57 < 0.01 < 0.01 Conscientiousness Correlation 0.14 -0.33 0.17 0.29 p-value < 0.01 < 0.01 < 0.01 < 0.01 Extraversion Correlation 0.09 0.09 0.22 0.06 p-value 0.01 0.01 < 0.01 0.09 N=832 Tanglewood Casebook to Accompany Staffing Organizations, 8e 31 Specific Assignment Details Marilyn Gonzalez and Daryl Perrone have asked you t o complete the following steps to evaluate the soundness of the proposed selection pl an, and provide them with a report. They are especially interested in learning what you r results suggest about the validity of various selection methods. 1. Examine the data provided in Tables 3.1 and 3.2. Wr ite a one page memo describing what the results show. Be certain to emp hasize both the practical and statistical and statistical significance of the res ults. Also, be certain to note which of the predictors is most related to which of the relevant outcomes. 2. One key question for selection methods is the conte nt validity of selection methods. For each of the scales proposed by Tanglew ood, assess how well it matches the content that it claims to measure, and how well it corresponds to the specific job of store associate. Make suggestions for how each method cou ld better capture the content it seeks to measure. 3. After summarizing the overall results of the staffi ng system, write a description of what Tanglewood should do if it wants to find good candidates. The company would also prefer to use only two or three predictors. Based o n the analyses above and the data provided in the case, describe which predictors you would recommend for this job, and explain why these predictors are the best choices. 4. Based on the description of the experimental valida tion procedure, do you believe that the observed validity estimates will generaliz e to other stores? Provide an explanation for why the traditional method for coll ecting validation evidence and the experimental procedure might yield different result s. Which method do you believe is more accurate? Why or why not? What additional info rmation might you use to determine if the results will generalize? Reminder: Your audience is not particularly familia r with validation techniques, so your grade for this assignment will be based, in large m easure, on how well you can guide the reader through the basic information. Staffing Serv ices will look very negatively on a report that is difficult to read, presents contradi ctory information, or that includes tables presented in a hard to interpret format. Prepared by John Kammeyer-Mueller 32 CASE FIVE: DISPARATE IMPACT ANALYSIS Case Objectives The most significant equal employment opportunity c oncern for any organization is when a large class of employees gathers together to prop ose that they have been discriminated against. In this case, you will be able to assess a case of adverse impact proposed by African-American employees of Tanglewood in Norther n California. This case will give you an opportunity to use the quantitative material described in your textbook in a more elaborated employment setting. Simply determining whether an organization has prob lems related to the diversity of its workforce is a good first step for addressing legal complaints, but it does not resolve the underlying problems that lead to disparate impact i n the first place. It is also necessary to develop specific staffing strategies in terms of re cruiting and promotion that help to minimize disparate impact. Thus, the second stage o f the case incorporates ideas from several chapters to provide a full picture of how o rganizations can improve diversity. Recruiting and Hiring for Northern California The typical recruiting and hiring practices for Nor thern California are based on a model that has been successful in finding qualified, ener getic salespeople and talented managers. When openings occur, there is a two-prong ed recruiting approach. First, as an internal method of selection, existing employees ar e solicited for recommendations. For higher level positions, the internal selection proc ess involves promotion from within. Second, as an external method of selection, adverti sements are placed in the popular press and applications are taken from the internet sources. Final selection decisions are based on a few basic principles as described in other sections of the casebook. One clear concern is that any new employee must fit well with the group into which they are selected. Many managers specifi cally solicit the opinions of the work group when making hiring decisions. In particular, for higher level positions there are often group interviews. Work skills are seen as “tr ainable,” so they are often de- emphasized. Instead, the focus is much more on pers onality and values. A Legal Conundrum While Tanglewood central management strongly suppor ts the selection methods utilized in Northern California, the formation of a class ac tion lawsuit is creating a new problem. The national law firm of Eaglette-Schubert has begu n to contact many of Tanglewood’s Northern California minority employees and encourag e them to band together to sue the organization. The initial impetus for this attentio n was an internal complaint filed by an African-American shift leader from Stockton named S tanley Root, who claimed he was repeatedly passed over for promotion opportunities despite positive performance Tanglewood Casebook to Accompany Staffing Organizations, 8e 33 appraisals. Marilyn Gonzalez attempted to contact Mr. Root several weeks after the complaint was filed, but he told her that because h e saw such delayed action from the company on his behalf, he was discussing the matter with Eaglette-Schubert and any comments or questions should be directed to the law yers who were taking on his case. Eaglette-Schubert has a long history of successful class action lawsuits against large companies in the retail industry, with some cases r esulting in decisions in the millions of dollars. Of course, such high dollar amount cases a lso usually also mean heavy negative publicity. Upper management is nervous. The Tanglewood Philosophy Tanglewood generally prides itself on its openness, inclusiveness, and encouragement of diversity. Tanner Emerson and Thurston Wood both ha ve tried to build the company on a model of inclusiveness, and this means that judgmen ts are made about individuals solely on the basis of work and character. As such, the po ssibility of a lawsuit presents a real problem for the company. The selection strategy for Northern California is widely seen as a success story within the company, but the company wants to take any steps possible to ensure that it is not engaging in practices that vi olate the intention to embrace diversity. The current method for hiring managers involves a t argeted recruiting strategy with a strong emphasis on internal selection. Individuals who show particular promise in their work are encouraged to apply for managerial positio ns when they open up. Although managerial job openings are posted within the organ ization through in-store bulletin boards as well as e-mail notifications, individuals who are recommended by their current supervisors have a strong advantage in the process. The external recruiting strategy also tends to favor public postings of job availability. The company’s board of directors would ideally like to gain specific information that will definitively show if there is discrimination. If th ere is evidence that a problem is occurring, the company would prefer to have a low-p ublicity settlement with minority employees and take steps to improve the climate for minorities. However, if there is not evidence that there is a problem with their hiring methods, they would much prefer to keep their current methods in place. The Plaintiffs’ Strategy The specific details of the case to this point have few details pointing to specific actions or behaviors that suggest overt or intentional disc rimination. In fact, Eaglette-Schubert’s early communication with the company has suggested they see the problem as arising because the Tanglewood uses an internal network to find new employees and promote those inside the company. The process is therefore potentially closed to minority groups. According to the disparate impact theory of discrim ination, there is no need to prove discrimination was intentional, but simply that the re is a difference in employment outcomes between groups falling under a protected c lass. Prepared by John Kammeyer-Mueller 34 The Eaglette-Schubert team appears to be using a “b irds of a feather” strategy they have pursued previously to argue for how disparate impac t occurred. In effect, they argue that extensive reliance on within-company networks makes many companies prone to discrimination because of homophily in social netwo rks. Homophily is a social psychology term for the widely observed phenomenon that most people seek to be around those who are similar to them. By extension, majori ty group managers will seek out other majority group individuals to include in their soci al relationships. This means that a company can engage in wide-ranging discrimination e ven without overt discriminatory intent, but based on subtle, unobserved preferences . The law firm has used a social psychologist named Frances M. Bosgaw employed at C ornell University in the past. Her research generally supports the appearance of gende r-based homophily, but the research is less specific with regards to the subject of rac e. The pursuit of this strategy is interpreted as a do uble-edged sword within Tanglewood. First, as noted by Marilyn Gonzalez, the homophily argument is being pursued because there is no evidence that the company is deliberate ly acting to discriminate against minorities. The strong diversity statements in the company handbook and the clear consequences that have been shown to individuals wh o engage in discriminatory behavior are one reason the company has a good repu tation in terms of diversity. However, this information may be considered irrelev ant, because the Eaglette-Schubert theory of the case doesn’t hinge on intentional dis crimination. So Tanglewood must take a careful look at their outcomes across multiple jo bs and be certain that they are in compliance with the law. The Next Stage To assess whether there is a problem with statistic al representation of minorities at Tanglewood, the first step is to conduct statistica l analyses of current employment practices. The information is presented for store a ssociates, shift leaders, department managers, assistant store managers, and store manag ers. Basic Analysis Procedure for EEO Analyzing disparate impact requires comparing the a vailability of protected classes (i.e., the proportion of the qualified and available work force who are members of protected classes) to the utilization of protected classes (i .e., the proportion of those hired or employed who are members of protected classes) for each job in the organization. In a flow analysis, data from the organization’s hiring practices and applicant pool are used to compare how many individuals were hired from variou s groups in the applicant pool. In a concentration analysis, the distribution of employe es within the organization is assessed. Selection ratios and the 4/5 rule One relatively simple way to assess disparate impac t is to compare the proportion of applicants who are hired from several sources. This is done by assessing selection ratios as described in Exhibit 2.5 in your textbook. Tanglewood Casebook to Accompany Staffing Organizations, 8e 35 The Uniform Guidelines in Employee Selection Proced ures provides a simple guide to calculate differences in hiring rates. The rule sta tes that if the organization’s utilization rate of a minority group is below four-fifths (or 0 .80) of the utilization rate for a majority group, disparate impact may exist. To use the 4/5th s rule, divide the hiring rate for two groups. As an example, assume that you have a total of 100 positions to fill. The applicant pool consists of 52 men and 48 women. You give these app licants a test to determine their physical strength, and find that 39 men and 24 wome n pass the test and would be hired. In this case, the SR maj is 39÷52=0.75, and the SR min is 24÷48=0.50. To compute the selection ratio, take 0.50÷0.75=0.67. This is under four-fifths (i.e. 0.80), so disparate impact is said to exist for this strength test. Thi s does not automatically mean that there is discrimination, but it does mean that it is incumbe nt on the organization to demonstrate that the strength test is actually job related. Concentration statistics A second method for assessing disparate impact is e xamining concentration statistics. The basic procedure is also outlined using Exhibit 2.5 in your textbook. Legal guidelines offer no standard statistical tests to assess conce ntration statistics. Managers are instead expected to notice if there are different proportio ns of protected classes across organizational levels. For this case, the biggest p roblem would be a high concentration of minorities in low level positions coupled with a hi gh concentration of Whites in higher positions. Using gender as an example, if 50% of st ore associates are women, and only 30% of managers are women, this suggests the promot ion system is not open to women. Prepared by John Kammeyer-Mueller 36 Historical Hiring and Promotion Data: Applicant Flo ws Occupational category Total White* Total Non-White African- American* Store Associates External hires Applicants 18226 15436 2790 594 Hires 3832 3221 611 135 Selection ratio 21.02% Shift leader External hires Applicants 392 320 72 17 Hires 61 54 7 2 Selection ratio 15.56% Internal hires Applicants 864 712 152 30 Hires 280 241 39 6 Selection ratio 32.41% Department manager External hires Applicants 1242 1074 168 44 Hires 94 82 12 3 Selection ratio 7.57% Internal hires Applicants 589 509 80 21 Hires 124 108 16 3 Selection ratio 21.05% Asst. store manager External hires Applicants 146 123 23 7 Hires 17 15 2 0 Selection ratio 11.64% Internal hires Applicants 108 90 18 4 Hires 27 25 2 1 Selection ratio 25.00% Store Manager External hires Applicants 50 42 8 2 Hires 5 4 1 0 Selection ratio 10.00% Internal hires Applicants 81 66 15 4 Hires 13 9 4 0 Selection ratio 16.05% *Non-Hispanic Tanglewood Casebook to Accompany Staffing Organizations, 8e 37 Historical Concentration Data Occupational category Total White* Total Non-White African- American* Store Associates Employees 2760 2307 453 95 Concentration 83.59% 16.41% 3.44% Shift leader Employees 552 464 88 10 Concentration Department manager Employees 391 341 50 9 Concentration Asst. store manager Employees 69 64 5 2 Concentration Store Manager Employees 23 16 7 0 Concentration Total Employees 3795 3192 603 116 *Non-Hispanic Prepared by John Kammeyer-Mueller 38 Specific Assignment Details For the job group, you will analyze the information and prepare a report showing the results of the EEO investigation. The Director aske d you to address these questions in your written report: 1. Compute flow and concentration statistics. There ar e two different methods for conducting disparate impact analysis in this case. One is to contrast the representation of White employees compared to non-white employees as a group. Another is to contrast the difference in representation of White employees com pared to specific racial/ethnic subgroups (e.g., White compared to African-American ). Because the case is being brought specifically on behalf of an African-Americ an plaintiff, this is the most important contrast, but Tanglewood would like to see what the data look like for non-Whites as a whole as well. a. Examine the selection ratios for all job categories , and determine whether the evidence points to disparate impact discrimination using the 4/5 th ratio. b. Examine the concentration data and determine whethe r the relative proportions of White, non-White, and African-American employees ar e similar across job categories, or if there appears to be a concentrati on of White employees in upper management positions. 2. Tanglewood is concerned that the Eaglette-Schubert legal team will be able to gain access to historical employment data in the li tigation process, and based on previous cases in this area, Tanglewood is acting on the ass umption that if there are any problems with representation, it will become available to th e plaintiffs in a lawsuit. Write a proposal for how the company might address Eaglette -Schubert’s legal team on the basis of these initial results. What written statements d o you believe that the company should make in responding to this claim? 3. Describe how Tanglewood can make changes to their r ecruiting procedures to achieve better EEO outcomes in the future based on resources described under the “EEO/AA: Information and Initiatives” section in yo ur textbook. This will involve collecting research from other sources. Ideally, th is analysis will also refer to the recruiting practices you developed in the second ca se. 4. Describe how Tanglewood can make changes to their p romotion and career development procedures to achieve better EEO outcom es based on resources described under the “EEO/AA: Information and Initiatives” sec tion in your textbook. This will involve collecting research from other sources. Foc us in particular on the internal recruitment process. This analysis should address t he organization’s culture as described in the introductory case. Tanglewood Casebook to Accompany Staffing Organizations, 8e 39 CASE SIX: INTERVIEW Case Objectives Research on interviews has generally shown that sta ndardized procedures are higher in their reliability and validity than unstructured in terviews. Learning how structured interviews are constructed is an important componen t of the selection process, as is getting a “feel” for what it’s like to give and rec eive an interview. This case gives you an opportunity to do both. An additional concern in the selection process is e nsuring that each new predictor is adding something new to the process. As such, you w ill assess what the current methods of selection measure, and determine what new inform ation can be brought out by an interview. Basic scenario As you learned in the third case, Tanglewood is wor king to improve the quality of their selection systems. The process of assessing selecti on methods initiated by Marilyn Gonzalez was not limited to store associates—it als o covered department managers, assistant store managers, and store managers. Altho ugh the method of using an increasing number of tests and forms was generally been seen a s an adequate update to the process for hiring entry level employees, store managers ag ree that this is not a sufficiently rigorous method for selecting department managers. The most important concern is that individuals who are promoted from within the organization to the department manager level are ty pically viewed by other employees as very qualified and integrated into the corporate cu lture and mission of Tanglewood. Individuals who are hired from outside the organiza tion to be department managers, on the other hand, often have a very difficult transit ion into the organization and make decisions that are in conflict with the corporate c ulture. They are seen as outsiders who do not really “get” what it means to be part of the Tanglewood family. The current method of selection for external manage rs looks very much like the method of selection for store associates. All applicants c omplete a brief job application form which provides information on education and years o f work experience. Some pilot stores also have begun using the Marshfield Applicant Exam and Retail Knowledge test (described in the measurement case), and based on t he validation evidence described earlier, this will become a regular part of the sel ection procedure across the chain. This information is an important determinant of who is m inimally qualified, but is generally not the primary determinant of who is or is not eve ntually hired. The most important part of the selection process is the interview. Prepared by John Kammeyer-Mueller 40 The current interview form provided for these posit ions is shown in Appendix C. This interview protocol is no different than the intervi ew protocol for store associates, except that the Assistant Manager for Operations is expect ed to take into consideration the fact that the department manager position requires consi derably more responsibility and intellectual work. Most store managers and assistan t store managers for operations agree that the current system is simply not detailed enou gh to produce a good selection protocol. Even experienced managers find that there is occasionally an unpleasant surprise in store for them when a new employee actu ally begins work and the employee is not at all the sort of person they thought they had assessed in the interview. Improving the Process One of the primary problems in the process of selec ting external candidates to serve as department managers is the lack of structure to the selection process. In most cases, managers request that applicants fill out the work history applicant, a brief résumé, and then interview everyone who applies. This is a time consuming process, because many candidates simply do not have the requisite skills for the job. Other managers only interview individuals who have a certain number of years of work experience, experience in specific fields, or a specific educational backg round, but there is not a general consensus on which method is best. Tanglewood would like to formulate a more efficient policy for screening. This is especially important in light of the large number o f potential new predictors that have been included in the system as part of Marilyn Gonz alez and Daryl Perrone’s new procedures. They ideally would like to develop a se quence like that shown in Exhibit 8.3 in the textbook that moves each applicant from the stage of being an applicant to an offer receiver. To briefly review some financial information, the M arshfield Applicant Exam and Marshfield Customer Service Biodata Questionnaire a nd Essay are both copyrighted instruments that cost $10 each per applicant. Alter native computerized versions of these materials that do not carry a “per applicant” cost are available for in-store kiosks or can be completed online, but the startup costs are much higher for the electronic versions. Because the personality test and customer service t ests were administered entirely in- house, they are free for Tanglewood. Unfortunately, there are no validity coefficients f or the position of Department Manager as there has been no period of testing yet. Tanglew ood believes that, based on the preliminary data provided by the store associates s ample, they would like to use all of these predictors. A more formal validation procedur e will be initiated later in the process, but for now, Tanglewood would like a selection plan developed that will take the sequencing of all of the predictors into account. Methods for Developing the Interview Tanglewood Casebook to Accompany Staffing Organizations, 8e 41 A second major problem, besides the difficulties in creating a good sequence of staffing procedures, is the fact that the general process of interviewing is not seen as especially effective. Many managers complain that even when th ey adhere to the system described by the interview guidelines provided in Appendix C, they still do not feel like they can differentiate good from bad candidates. Moreover, a necdotal evidence suggests that the actual content of interviews is extremely different across locations. The possibility that candidates are receiving different interview questi ons is seen as a potential legal problem. The Tanglewood response is to create a new and bett er interview protocol that can be used across the chain. Given the problem of low sta ndardization, lack of guidelines, and the general knowledge of research on interviews in the staffing services department, it has been decided that a structured interview will b e needed. Daryl Perrone has provided you with several directives for writing structured interview questions. He provided them to you in the form of a list as follows: The best interview questions have several key quali ties. First, they are broad enough to actually allow variability in answers; in other words, not every applicant gives the same answers. Second, they are directly relevant to important elements of the job. Third, they do not reflect knowledge or skills that a person could realistically acquire while on the job. Situational interviews: the core to writing good si tuational interview questions is establishing a scenario that the applicant will rea ct to. These can blend into work samples or problem solving tasks related to the job . Good situational interview questions are realistic enough that the applicant w ill actually experience the same emotions you are trying to represent. For example, in a situational interview designed to assess customer service skills, an applicant mig ht be asked to confront a manager pretending to be a frustrated shopper. In a situati onal interview designed to assess teamwork ability, an applicant might be asked how h e or she would cooperate with a group of individuals to solve a difficult problem a t work. Behavioral interviews: these are interview question s that ask a person to explain previous experiences related to the KSAO required f or the job in question. Many of these questions begin with “Tell me about a time wh en you had to…” For example, an individual interviewing for a customer service j ob might be asked, “tell me about a time that you had to interact with an angry custome r.” The key function of behavioral interviews is to obtain a more detailed picture of the experiences of a candidate and determine how well they can relate their experience s to the position at hand. A scoring key is an extremely important part of the structured interview process. Most scoring keys are developed by describing behav iors on a graduated scale ranging from very poor to very good. A good scoring key is behaviorally specific and reflects real attributes that a person might posses s and demonstrate on a job. The biggest problem with scoring keys is that they are often too easy or too hard, so actual scores end up being bunched together with no real v ariance. Prepared by John Kammeyer-Mueller 42 To facilitate the completion of this task, the comp any also has provided you with a sample of a behavioral interview questions below in a book published in 1964 titled “The Structured Interview” by Nivram Ettennud. This is o nly a single question, and is much different than the job you are looking at, but Dary l Perrone believes it should give you an idea of what Tanglewood would like to see. Job title Judge, State of Michigan Item description This is a situational interview qu estion requiring the applicant to formulate jury instructions for an employment law case. Performance dimensions Task: Instruct juries on applicable laws, direct ju ries to deduce the facts from the evidence presented, and hear their verdicts. Knowledge: Knowledge of laws, legal codes, court pr ocedures, precedents, government regulations, executive orders, agency ru les, and the political process. Skills: Using logic and reasoning to identify the s trengths and weaknesses of alternative solutions. Communicating effectively ve rbally or in writing. Abilities: Oral expression, information ordering. Interview question The case before you involves a p laintiff who has been denied employment by a large corporation due to discrimination by one of the cor poration’s employees in the process of hiring. The question at hand hinges on the extent t o which the organization is liable for the actions of its employee. Provide instructions t o a jury that will represent the legal principle on which they are deciding the company’s liability. Original scoring key 1 point: Instructions fail to mention critical concepts rela ted to agency, in particular, failing to mention that the defendant’s actions lea d to the agent having authority to act on behalf of the defendant OR instructions are highly leading in such a way that they could prejudice a jury against the defendant o r plaintiff. 2 point: Instructions are sufficient to define specific term s, but use technical terminology while failing to define what the terms mean (e.g., use of terms like liability with no definition) OR the instructions are correct, but ex cessively vague with respect to the relationship features required to establish agency. 3 point: Instructions are sufficient to define terms, and de fine all technical terminology, but include complex sentence structure (e.g., multi ple clauses or difficult vocabulary) that would make it difficult for a person with a hi gh school education or less to understand. 4 point: Instructions fulfill all the requirements of number three, but also do so in very straightforward language that is easy to understand , with only simple sentences and no complex vocabulary. Interviewer comments The individual who piloted thi s item felt that the scoring key did not do a sufficient job of defining the terms for “simple language” and “easy to understand.” In response, we have changed the four point option to read: Instructions fulfill all the requirements of number three, but also do so with only one clause per sentence, no negations (negative wor ding), or words identified by two or more raters out of a panel of three as being ‘difficult’ or ‘complex.’ In addition, the person who piloted this item also suggested that the actual specific legal language related to agency be included. To rectify this, we looked at the Michigan criminal law and found the following definition: M Civ JI 38.01 Agency Relationship: Definitions of Agent and Principal An “agent” is a person who is authorized by another to act on [his / her / its] behalf. The [person / entity] who has given the authority a nd has the right to control the agent is called the “principal.” Tanglewood Casebook to Accompany Staffing Organizations, 8e 43 Specific Assignment Details Daryl Perrone has asked you to engage in the follow ing steps to develop a selection plan and structured interview for the Department Manager pos ition. Do not forget to refer to the job description provided in Appendix A when developing the selection plan: 1. Develop a detailed selection plan for this position . In this case, you should determine what you want to measure by analyzing KSA Os from the job description and the information on organizational culture in the ca se, and fitting the selection measures into the plan format as shown in Exhibit 8.2 in the book. The current selection methods are the experience check, education check, Marshfie ld Applicant Exam, and the Retail Knowledge Test. Do not include the current intervie w as part of the selection plan. 2. Based on the materials you have compiled as part of the selection plan, you will determine which KSAOs are not being measured adequa tely in the current system. Those KSAOs not being measured adequately will be prime c andidates for inclusion in the new selection system. 3. Develop initial interview questions. Staffing servi ces believes that a half-hour interview will be appropriate, with about 3 minutes per interview question. They would like 5 behavioral interview questions and 5 situati onal interview questions. Each interview question should have a very specific KSAO target as shown in the example. 4. Develop a scoring key for each interview question. This means you will have ten different scoring keys. 5. Engage in a pilot trial of the interview questions. Each person in your group should run through the interview with someone not i n your group (other individuals in the class can be used, friends, family members, co-work ers, etc.). Half of the members of your group will act as interviewers to determine ho w well your pilot group can understand and answer the questions, half of the gr oup will act as interviewees to determine how well your pilot group can understand and follow your scoring keys. Make sure that you adhere strictly to the structured int erview format. You may ask applicants follow up questions for clarification, but otherwis e work to suppress idiosyncratic behavior or deviations from the script. Take notes during the interview to supplement your scoring key, noting areas where your initial q uestions or scoring methods may not have worked well. 6. Debrief pilot group members. After finishing the sa mple interview process, ask your “applicants” or “interviewers” to describe how they felt during the process. In particular, ask them how they would react to your q uestions. Also ask them, for each question, what they were thinking about during the process of answering or scoring. 7. Revise interview content. Provide information on ho w interview items and/or scoring keys will be modified based on your feedbac k from the pilot group. Prepared by John Kammeyer-Mueller 44 CASE SEVEN: SELECTION DECISION MAKING Case Objectives While there are numerous staffing decisions that in volve investigating the outcomes for large groups of employees, the many of the most imp ortant decisions involve only one position and a small number of applicants. The curr ent case examines just such a case for a particularly important location for Tanglewood. You will read through a series of resumes, look ove r reports made during interviews, and investigate the results of several standardized mea sures of employee suitability. This case thus integrates information from several earlier ca ses that have involved making an appropriate choice of measures, but now applying it with a specific group of individuals. From these multiple pieces of data, you will develo p a recommendation for hiring. You also will develop guidelines for how similar select ion decisions could be made for the entire organization. The situation of interest You have been asked by Tanglewood to assist them wi th an important hiring decision. The company needs a new manager for their flagship store in Spokane. This position is important for a number of reasons. First, this is t he single largest store in the chain, with approximately double the floor space of other locat ions. The Spokane store has shown very strong revenues for years. This store also has important symbolic value. This store is only a few blocks from the first Tanglewood store. Recent remodeling efforts h ave also made this one of the most elaborate stores in terms of appearance, with featu res like an open kitchen restaurant where all the food is prepared and served using Bur ford Kitchen masters, an outdoor adventure area with a rock wall and a live kayak si mulator, and quarterly demonstrations of the latest clothing options that will be present ed in other stores. Nearly all managers will spend at least sometime working in the Spokane store as part of their initial training. Finally, the store is commonly used as a first test ing ground for new products. It is an ideal location for this option, because it is one o f the most representative locations. Because it is on the outer edge of Spokane, many cu stomers are from suburban areas, but because of its size and unique features, urban and rural customers who make the trip to the store as well. This means that this store is cl osely aligned with the corporate marketing function, and good managers must understa nd how to do marketing and promotions from the bottom up. Tanglewood Casebook to Accompany Staffing Organizations, 8e 45 The applicants Because this is such an important position, Marilyn Gonzalez arranged to have all candidates complete the full battery of proposed se lection tools. The importance of this position also has lead the stores to conduct a clos ed recruiting operation. Only twenty individuals were contacted as potential sources. Th e internal candidates were contacted through referrals made by regional managers, wherea s the external candidates were based on nominations from individuals in the corporate of fices. You have received résumés, retail knowledge tests, standardized test scores from the Marshfield Applicant Exam, biographical data, and s cores on several personality dimensions for the 10 individuals from the initial applicant pool who expressed a strong interest in the position. This information is all a vailable in the attached Tables in the Appendix. Future practice There are several questions the company has about i ts future hiring practices for store managers as well. It is clear that there will be a substantial revision to the collection of information from applicants based on your recommend ations from Case 3. This does not completely resolve the problem of how a final selec tion decision will be made. The current method for selection in managerial posi tions involves a two stage process that bears some resemblance to the process for hiri ng store associates, but at a higher level. There will of course be interviews in the pr ocess, but the organization needs more information about how to assess individuals before they go on to the final interview process, because managerial interviews are very exp ensive in terms of staff time. Prepared by John Kammeyer-Mueller 46 Specific Assignment Details It will be incumbent on you to present several opti ons regarding how this hiring decision should proceed. This is a very important decision, so Tanglewood would like you to provide several different possible selection schemes. 1. As in the previous exercise, develop a detailed sel ection plan for this position. Determine what you want to measure by analyzing KSA Os from the job description and the information on organizational culture in the ca se, and fitting the selection measures into the plan format as shown in Exhibit 8.2 in the book. The assessment methods you should consider in the selection plan are biodata, the Marshfield Applicant Examination, Retail Knowledge, conscientiousness, and extraversi on. 2. Develop assessment scores based on several multiple predictor methods described in your book. This entails developing distinct scor es for each applicant based on clinical prediction, unit weighting, and rational weighting schemes. For each method, develop a list of your top three finalists to provide to the regional manager. Compare these to a multiple hurdle selection procedure that uses test scores as a first stage to find the five strongest candidates, and then uses interviews and résumés to select the top three finalists. Which of the methods do you believe work s best? Why? 3. You are making a recommendation for who should be c onsidered a candidate for hiring based on your read of the data. Using your r ecommendations, Tanglewood will develop a panel of individuals who will be involved in the final selection decision with interviews. Who do you think should be involved in this process from Tanglewood based on the discussion of decision makers in the textboo k? What does each decision maker add to the process? You should consult the organization al structure information in the introduction 4. Based on the three previous portions of the assignm ent, develop an official guide to selection that can be supplied to all the stores . This official guide should provide the information from the selection plan, suggestions fo r how to combine predictors, and guidelines for managers on who should be involved i n the final decision. The decision makers do not necessarily need to be the same ones participating in the selection decision for the Spokane flagship store. Tanglewood Casebook to Accompany Staffing Organizations, 8e 47 CASE EIGHT: RETENTION MANAGEMENT Case Objectives Voluntary turnover is the final stage of the employ ment relationship. When voluntary turnover occurs, employees who have been screened, selected, socialized, and trained in the organization depart despite the organization’s attempts to keep them. This clearly can be a considerable problem for an organization, sinc e all the costs associated with staffing a new employee now must be incurred again for a new employee. However, voluntary turnover is not always a negative event. When an in dividual who has a poor productivity profile, negative attitudes towards the job and org anization, and superior alternatives elsewhere leaves, it can be a positive outcome for the organization and the (former) employee. In this case you will review information related to turnover in managerial positions for Tanglewood and determine whether managerial turnove r is more likely to be a positive or negative event for this organization. You will also use the techniques described in your textbook to develop suggestions for Tanglewood so t hat they can ensure that they are retaining the employees that they want to keep to t he greatest degree possible. The Situation As you may have noticed when analyzing the transiti on probability matrix in the planning exercise, there was a 34% annual turnover rate amon g store managers and assistant store managers in Washington during the past year. This i s an unacceptably high number from Tanglewood’s point of view. Such high levels of tur nover are likely to create a feeling of instability among lower level employees, and genera lly indicate that the organization will have difficulty creating effective long-term goals in these stores. Unfortunately, this high turnover among managerial employees is even more pr oblematic because of the costs involved. Managerial survey is a very sensitive issue for Tan glewood. The process of finding good managers obviously begins with recruiting. A very l arge number of individuals must be found during the recruiting phase, because, as you saw in case 4, only 11% of external applicants are selected to become assistant store m anagers and only 10% of external applicants are selected to become store managers. A fter hiring, every manager, regardless of their status as internal or external hires, is p ut through a two month training program that includes trips to the corporate offices, mento ring from other store managers and the regional manager, and culminating in a public welco ming ceremony at the store where the manager will work. There is a downside to the process of training mana gers. Excellence in managerial performance is often observable from the outside as well because competitors can walk into the stores and see which ones are functioning well. It is common for particularly Prepared by John Kammeyer-Mueller 48 successful store managers to receive offers from ot her companies that are trying to capture some of the Tanglewood “essence.” The Employee Satisfaction Survey The Tanglewood employee relations department admini stered a survey every year to assess the attitudes of employees towards several a spects of their employment. Although the purpose of the survey is to collect baseline in formation on employee attitudes, Marilyn Gonzalez believes that these survey respons es will be an ideal method to track the reasons why some managers are more likely to tu rnover. The annual employee survey is conducted in June. Bo xes of blank surveys are sent to regional managers, who then use central routing to send surveys to each store. The survey was initiated to give employees an opportunity to e xpress their feelings about key topics that Tanglewood thinks will benefit employees. Give n the overall organizational culture, it should be clear that employee satisfaction is an important issue. Emerson and Wood send bulk e-mails to all store managers to encourag e them to get a 100% response rate from their employees. However, it is common for les s than 50% of the employees to complete surveys. An example of the survey is contained in Appendix E . The survey asks questions that can be broken down into four major topics, as follows: Supervisor satisfaction The supervisor satisfaction questions encourage emp loyees to describe their relationship with their immediate supervisor and the extent to w hich they are satisfied with the direction they receive on a day to day basis. Tangl ewood spends a great deal of money training supervisors on the “Tanglewood way” so the y are especially concerned that these principles are carried out in practice. Work satisfaction Work satisfaction relates primarily to the degree t o which employees believe that their tasks are interesting, fulfilling, and contribute t o a meaningful life. The participatory system at Tanglewood puts a great deal of responsib ility on employees to make their work enjoyable, but the corporate offices still wan t to make certain that every effort is made to ensure that employees have the freedom to d o work they enjoy. Pay satisfaction Tanglewood realizes that because they place a great deal of responsibility in employees’ hands, they need to ensure that employees feel they are been adequately paid for this additional effort. At the same time, because Tangle wood spends a great deal of time and energy creating an enjoyable workplace, they believ e that they should not make pay too much a focus of their human resources activities. T he company typically is a market leader in compensation relative to discount retaile rs like Target or WalMart, but pays slightly less than stores like Kohls, J.C. Penny, o r Sears. Tanglewood Casebook to Accompany Staffing Organizations, 8e 49 Benefits satisfaction The benefits package offered by Tanglewood consists of basic medical coverage for most employees, a 401K program, and maternity leave bene fits. Additional benefits for higher level employees include 50% tuition reimbursement f or undergraduate education and. Within the corporate human resources function, Mari lyn Gonzalez has been increasingly critical of the lack of innovative benefits offerin gs. Emerson and Wood recently proposed that there be an overhaul of the organization’s ben efits because they do not create much of an impression on employees. Regional data Table 7.1 contains summary information from the emp loyee surveys, the “competition index,” and turnover. Because the most pressing con cern is managerial turnover, only data for store managers and assistant managers is d isplayed. The data is collected by the staffing services division and then summarized acro ss stores for a five-year period. Having this long term aggregated data makes certain that the results are reasonably robust. The competition index is a measure of the number of local businesses that might draw employees from Tanglewood. The scale ranges from 1 to 10, with higher values indicating more competition. Some of the factors th at go into the development of the competition index include the number of other retai l establishments in the area, the total square feet of retail available, and the number of other Tanglewood stores. This measure was not specifically developed for turnover analysi s, but the corporate office believes that it probably is a good indication of the number of a lternative organizations that might want to hire Tanglewood’s managers. Prepared by John Kammeyer-Mueller 50 Table 7.1 Turnover Data Across Locations Region Work satisfaction Supervisor satisfaction Pay satisfaction Benefits satisfaction Competition Index Turnover Rate Total Turnover Eastern Washington 3.2 4.1 2.0 4.3 7.8 0.33 165 Western Washington 2.9 4.4 3.9 4.5 5.2 0.27 135 Northern Oregon 2.1 3.6 1.5 3.8 6.8 0.41 148 Southern Oregon 3.1 4.8 2.7 4.5 5.4 0.24 77 Northern California 2.8 3.3 4.1 3.1 8.3 0.48 221 Idaho 3.9 4.2 3.0 4.1 4.1 0.29 99 Montana and Wyoming 4.4 3.3 4.1 3.5 3.8 0.36 130 Colorado 3.9 3.5 4.7 3.2 7.9 0.46 212 Utah 2.5 3.7 4.5 3.6 4.6 0.28 106 Nevada 2.3 2.8 2.9 2.4 3.7 0.33 125 New Mexico 3.6 3.2 4.8 2.9 4.2 0.28 101 Arizona 4.1 2.9 2.5 3.1 7.6 0.39 172 Tanglewood Casebook to Accompany Staffing Organizations, 8e 51 Correlations for individual surveys Daryl Perrone has also developed a correlation matr ix that describes the relationship between surveys and performance indicators. This is similar to the information described in the validation chapter. Perrone thinks the same methods can be used to assess turnover as can be used to assess selection methods, since t urnover is “selection in reverse.” These data are available only for 153 managerial employee s across the entire chain over time. To ensure that the data are valid, only one year of information is used, so that the same managers are not being counted multiple times. The final row presents correlations between the performance indicators and turnover as well. Remember that turnover is a negative outcome. A negative relationship between s atisfaction and turnover means that those with a positive attitude toward the job are l ess likely to turnover. This also means it generally is preferable to see negative correlation s between performance indicators and satisfaction, because it means that those with high er levels of performance are less likely to leave the organization. Table 3.2 Correlations between survey data and perf ormance indicators Citizenship Absence Performance Turnover Work satisfaction Correlation 0.15 -0.17 0.28 -0.13 p-value 0.06 0.2 <0.01 0.11 Supervisor satisfaction Correlation 0.22 0.09 0.16 -0.19 p-value <0.01 0.27 0.0 5 0.02 Pay satisfaction Correlation 0.03 0.01 0.04 0.09 p-value 0.71 0.90 0.62 0.27 Benefits satisfaction Correlation 0.09 -0.07 0.12 -.24 p-value 0.27 0.39 0.1 4 <0.01 Turnover Correlation -0.19 0.32 0.34 n/a p-value 0.02 <0.01 <0.01 N=153 Qualitative data: Exit interview results Staffing services has strongly encouraged the regio nal managers to carefully interview their managerial employees when they turnover. Beca use it is assumed that the regional managers will have some familiarity with the employ ees they are going to interview, staffing services has traditionally encouraged a fr iendly, informal discussion that will take place soon after the employee has turned in a resignation. Regional managers are instructed to, “ask the employees about what factor s influenced the manager’s decision to Prepared by John Kammeyer-Mueller 52 leave Tanglewood.” The content, pacing, and directi on of the interview questions are left to the manager’s discretion. Because of these fairly loose guidelines, there is a great deal of variety in the form and content of these interviews. However, there are som e broad areas of similarity among the responses. Daryl Perrone read through dozens of the interview reports provided by managers and developed the three most significant t rends he noted. Departure because of superior alternatives One major reason managers say that they are leaving the organization is because they have found superior alternatives. Many of these man agers express some regret about leaving, but at the same time, state that there are certain career outcomes that Tanglewood simply does not provide at the present t ime. Three representative statements from exit interviews are below: “As much as I love it here, I just can’t pass up a job that pays 25% more per year to start in the high tech industry. I also thi nk it’s just time for me to try out some different work” Assistant Manager, Western Washington “I would stay if Tanglewood would help to finance m y MBA. But I know they won’t, and I know that my new employer will.” Assistant Manager, Arizona “My new job pays me $10,000 a year more, and I can get my whole family on my health plan for free. From my point of view, tha t’s a real no brainer.” Store Manager, Northern California Departure because of dissatisfaction with the organ ization’s direction A second reason many employees say that they want t o leave Tanglewood is because they are dissatisfied with the direction of the org anization. Although Perrone is reluctant to make strong statements about trends in these com ments, he did notice that there appeared to be more employees from the eastern and southern locations who made these comments: “I came on board because I thought Tanglewood would be a different type of retail chain; you know, a place where people worked because they actually liked what they did. But for people like me who are worki ng in a store that used to be run by Mirabelle [a former rival that Tanglewood bo ught out], that old culture of command and control is still there. It’s too muc h of an uphill battle to make employee participation work here.” Store Manager, New Mexico Tanglewood Casebook to Accompany Staffing Organizations, 8e 53 “It seems like a lot of people in upper management here don’t really know what they want, and that’s frustrating. If I really thou ght this company had a mission, I’d follow it. But as it is, we seem to be constant ly teetering between this ‘participation’ concept and standard retail.” Assistant Manager, Utah Departure because of major life events The final common reason for employees to leave, acc ording to exit interviews, is that some event outside of work has made it necessary fo r them to seek work elsewhere. The most common reasons are family events, such as the employee needing to take time off to care for a sick relative, the birth of a child, or relocation because of a significant others’ job offer. Two typical examples follow: “It’s hard for me to leave, really. I’ve been worki ng with Tanglewood ever since I graduated from college fifteen years ago. In many ways, it’s like a family to me. However, my wife just found a great opportunity in Chicago that we don’t want to pass up” Store Manager, Eastern Washington “My dad’s been really sick lately and I think that I need to be in Florida for him. You all have been great to me while I’ve been here, but family has to come first.” Assistant Manager, Idaho Prepared by John Kammeyer-Mueller 54 Specific assignment details: Analyze the information from both the qualitative s urveys and narrative reports, and from this information, develop an overall plan for impro ving retention outcomes for Tanglewood. 1) Review the information from the regional data and e xit interviews, focusing on the major patterns that are associated with store-level turnover. What appear to be the most significant problems for Tanglewood based on this i nformation? 2) Review the information contained in the description of the situation, individual data, and the exit interviews, focusing on the types of p eople who seem to be leaving as well as the costs and benefits of voluntary turnover des cribed in your textbook. Do you think the evidence suggests that Tanglewood has pri marily functional or dysfunctional turnover? What evidence led you to that conclusion? 3) Compare the suggestions for developing exit intervi ews from your textbook to the methods used by Tanglewood. What specific concerns do you have about the quality of the data from exit interviews in their current f orm? What advice would you give Tanglewood to improve the quality of data they are receiving? 4) Evaluate the job satisfaction survey. Do you believ e that this survey is comprehensive? Using the information in your textbook, consider ad ditional information Tanglewood might want to add to this survey to better understa nd turnover. 5) Based on these data, what interventions could Tangl ewood, as a whole, initiate to improve their retention figures? Pay specific atten tion to the major sources of turnover identified in the data, as well as the factors list ed in your textbook that are related to turnover but that might not currently be measured b y Tanglewood. Your suggestions should be in the form of a memo from staffing servi ces to the corporate offices. Tanglewood Casebook to Accompany Staffing Organizations, 8e 55 APPENDIX A: JOB DESCRIPTIONS Store Manager Tasks KSAOs Specific tasks Task Dimensions Importance (% time spent) Nature Importance to Tasks (1-5 rating) 1. Manage the entire store to increase sales and ensure efficiency. 2. Coordinate store-level activities with the entire organization’s strategic policies. 3. Organize special promotions, displays and events. A. Planning and coordination 50% 1. Knowledge of organizational policies and practices 2. Skill in judgment and decision making 3. Ability to think creatively and develop original solutions 4 5 4 4. Analyze sales figures and forecasting demand for future periods 5. Determine appropriate policies and procedures for inventory, purchasing, and personnel management that will apply storewide. 6. Ensure quality, customer service, and health and safety standards are met storewide. 7. Oversee the store’s management of legal and security issues. B. Administration 20% 1. Knowledge of retail management policies and practices 2. Knowledge of legal precepts underlying personnel management 3. Skill in the analysis of financial and operational data 4. Ability to reason inductively 3 4 5 3 8. Chairing meetings with assistant and department managers. 9. Assess customer satisfaction to ensure appropriate customer service is being provided 10. Establish programs and training to ensure all employees are providing appropriate customer service C. Supervision and leadership 30% 1. Knowledge of the customer base served by the store 2. Skill in managing personnel resources 3. Communication and speaking skills 4 4 5 Job context: Indoors, office, business clothes, mostly sitting and standing, no environmental or job hazards Prepared by John Kammeyer-Mueller 56 Assistant Store Manager Tasks KSAOs Specific tasks Task Dimensions Importance (% time spent) Nature Importance to Tasks (1-5 rating) 1. Manage an area (hardlines, softlines, or operations/hr) of the store to increase sales and ensure efficiency. 2. Coordinate area-level activities with the entire organization’s strategic policies. 3. Organize special promotions, displays and events. A. Planning and coordination 30% 1. Knowledge of organizational policies and practices 2. Skill in judgment and decision making 3. Ability to think creatively and develop original solutions 4 5 4 4. Analyze sales figures and forecasting demand for future periods 5. Determine appropriate policies and procedures for inventory, purchasing, and personnel management in consultation with the store manager that will apply to the area of the store. 6. Ensure quality, customer service, and health and safety standards are met for the area. 7. Oversee the area’s management of legal and security issues in coordination with the store manager. B. Administration 40% 1. Knowledge of retail management policies and practices 2. Knowledge of legal precepts underlying personnel management 3. Skill in the analysis of financial and operational data 4. Ability to reason inductively 3 4 5 3 8. Chairing meetings with department managers. 9. Assess customer satisfaction to ensure appropriate customer service is being provided 10. Establish programs and training to ensure all employees are providing appropriate customer service C. Supervision and leadership 30% 1. Knowledge of the customer base served by the store 2. Skill in managing personnel resources 3. Communication and speaking skills 4 4 5 Job context: Indoors, office, business clothes, mostly sitting and standing, no environmental or job hazards Tanglewood Casebook to Accompany Staffing Organizations, 8e 57 Department Manager Tasks KSAOs Specific tasks Task Dimensions Importance (% time spent) Nature Importance to Tasks (1-5 rating) 1. Manage the department to increase sales and ensure efficiency. 2. Coordinate department activities with the store’s policies, in consultation with assistant store manager. 3. Implement special promotions, displays and events. A. Planning and coordination 30% 1. Knowledge of organizational policies and practices 2. Skill in judgment and decision making 3. Ability to think develop original solutions within prescribed parameters 5 3 3 4. Analyze sales figures and forecast inventory needs for future periods 5. Ensure quality, customer service, and health and safety standards are met for the department. 6. Enforce safety, health, and security rules as directed by the assistant store manager. 7. Inventory stock and reorder when inventory drops to a specified level. B. Administration 40% 1. Knowledge of retail management policies and practices 2. Knowledge of legal precepts underlying personnel management 3. Skill in the analysis of financial and operational data 4. Ability to reason inductively 4 3 3 3 8. Attending meetings with store manager and assistant managers. 9. Direct employees in sales, taking inventory, and performing services for customers 10. Monitor departmental performance to ensure associates and shift leaders are providing appropriate customer service 11. Direct store associates in their work activities B. Supervision and leadership 30% 1. Knowledge of customer service principles 2. Skill in managing personnel resources 3. Communication and speaking skills 4 3 4 Job context: Indoors, customer service environment, business cl othes, sitting and standing, some walking Prepared by John Kammeyer-Mueller 58 Shift Leader Tasks KSAOs Specific tasks Task Dimensions Importance (% time spent) Nature Importance to Tasks (1-5 rating) 1. Greet customers and ascertain what each customer wants. 2. Maintain knowledge of current sales and promotions. 3. Provide recommendations or locate merchandise for customers. 4. Answer questions regarding the store and its merchandise. 5. Describe merchandise and its operation and care to customers. A. Customer service 40% 1. Knowledge of customer service principles 2. Knowledge of merchandise offered in the stores 3. Communication and speaking skills 4. Ability to relate to others 5 4 4 6. Continually monitor for and resolve security and theft problems 7. Ticket, arrange and display merchandise to promote sales. B. Inventory control 20% 1. Skill in organizing, combining, and documenting information 2. Ability to perform light lifting and object manipulation 4 4 8. Attending meetings with department managers. 9. Direct employees in sales, taking inventory, and performing services for customers 10. Ensure associates are providing appropriate customer service C. Supervision and leadership 40% 1. Knowledge of customer service principles 2. Skill in managing personnel resources 3. Communication and speaking skills 4 3 4 Job context: Indoors, customer service environment, business cl othes, sitting and standing, some walking, some light lifting, minimal risk of injury from stocking shelves Tanglewood Casebook to Accompany Staffing Organizations, 8e 59 Store Associate Tasks KSAOs Specific tasks Task Dimensions Importance (% time spent) Nature Importance to Tasks (1-5 rating) 1. Greet customers and ascertain what each customer wants. 2. Maintain knowledge of current sales and promotions. 3. Provide recommendations or locate merchandise for customers. 4. Answer questions regarding the store and its merchandise. 5. Describe merchandise and its operation and care to customers. A. Customer service 70% 1. Knowledge of customer service principles 2. Knowledge of merchandise offered in the stores 3. Communication and speaking skills 4. Ability to relate to others 5 4 4 6. Continually monitor for and resolve security and theft problems 7. Ticket, arrange and display merchandise to promote sales. B. Inventory control 30% 1. Skill in organizing, combining, and documenting information 2. Ability to perform light lifting and object manipulation 4 4 Job context: Indoors, customer service environment, business cl othes, sitting and standing, some walking, some light lifting, minimal risk of injury from stocking shelves Prepared by John Kammeyer-Mueller 60 APPENDIX B: RECRUITING YIELD DATA Western Washington Applicant initiated Referrals Kiosk Job service Applicants 1400 3362 2963 4236 Candidates 536 1564 1315 1598 Hired 204 1026 652 378 6 month retention 124 819 502 310 1 year retention 92 703 358 284 Qualification rate 38% 47% 44% 38% Hiring rate 15% 31% 22% 9% 6 month retention 61% 80% 77% 82% 1 year retention 45% 69% 55% 75% Fixed costs Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 $40,000.00 Number of locations 25 25 25 25 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 $250,000.00 Variable costs Materials cost per applicant $5.00 $10.00 $1.00 $5.00 Processing cost per applicant $30.00 $30.00 $15.00 $15.00 Additional pre-hire costs $20.00 $200.00 $20.00 $0 Orientation and training $2,000.00 $2,000.00 $2,000.00 $1,000.00 Total variable costs $461,080.00 $2,391,680.00 $1,364,448.00 $462,720.00 Total cost $1,211,080.00 $3,391,680.00 $2,864,448.00 $1,712,720.00 Cost per hire $5,936.67 $3,305.73 $4,393.33 $4,531.01 Cost per 6 mo survival $9,766.77 $4,141.25 $5,706.07 $5,524.90 Cost per 1 year survival $13,163.91 $4,824.58 $8,001.25 $6,030.70 Tanglewood Casebook to Accompany Staffing Organizations, 8e 61 Eastern Washington Applicant initiated Referrals Kiosk Applicants 4629 3936 2673 Candidates 1608 1720 1110 Hired 676 1016 435 6 month retention 446 894 342 1 year retention 307 732 284 Qualification rate 35% 44% 42% Hiring rate 15% 26% 16% 6 month retention 66% 88% 79% 1 year retention 45% 72% 65% Fixed costs Cost of setup (per site) $20,000.00 $30,000.00 $20,000.00 Number of locations 25 25 25 Cost of setup (per division) $250,000.00 $250,000.00 $1,000,000.00 Variable costs Materials cost per applicant $5.00 $10.00 $1.00 Processing cost per applicant $30.00 $30.00 $15.00 Additional pre-hire costs $20.00 $200.00 $20.00 Orientation and training $2,000.00 $2,000.00 $2,000.00 Total variable costs $1,527,535.00 $2,392,640.00 $921,468.00 Total cost $2,277,535.00 $3,392,640.00 $2,421,468.00 Cost per hire $3,369.13 $3,339.21 $5,566.59 Cost per 6 mo survival $5,106.58 $3,794.90 $7,080.32 Cost per 1 year survival $7,418.68 $4,634.75 $8,526.30 Prepared by John Kammeyer-Mueller 62 Northern Oregon Applicant initiated Kiosk Agency Applicants 2616 3986 1290 Candidates 1102 1110 614 Hired 374 656 420 6 month retention 218 342 446 1 year retention 164 336 402 Qualification rate 42% 28% 48% Hiring rate 14% 16% 33% 6 month retention 58% 52% 106% 1 year retention 44% 51% 96% Fixed costs Cost of setup (per site) $20,000.00 $20,000.00 $70,000.00 Number of locations 18 18 18 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 Variable costs Materials cost per applicant $5.00 $1.00 $10.00 Processing cost per applicant $30.00 $15.00 $30.00 Additional pre-hire costs $20.00 $20.00 20 Orientation and training $2,000.00 $2,000.00 $1,000.00 Total variable costs $847,040.00 $1,388,896.00 $480,000.00 Total cost $1,457,040.00 $2,748,896.00 $1,990,000.00 Cost per hire $3,895.83 $4,190.39 $4,738.10 Cost per 6 mo survival $6,683.67 $8,037.71 $4,461.88 Cost per 1 year survival $8,884.39 $8,181.24 $4,950.25 Tanglewood Casebook to Accompany Staffing Organizations, 8e 63 Southern Oregon Applicant initiated Kiosk Agency Applicants 1248 2730 1129 Candidates 610 866 522 Hired 396 346 386 6 month retention 316 256 364 1 year retention 290 216 326 Qualification rate 49% 32% 46% Hiring rate 32% 13% 34% 6 month retention 80% 74% 94% 1 year retention 73% 62% 84% Fixed costs Cost of setup (per site) $30,000.00 $20,000.00 $70,000.00 Number of locations 16 16 16 Cost of setup (per division) $250,000.00 $1,000,000.00 $250,000.00 Variable costs Materials cost per applicant $10.00 $1.00 $10.00 Processing cost per applicant $30.00 $15.00 $30.00 Additional pre-hire costs $200.00 $20.00 20 Orientation and training $2,000.00 $2,000.00 $1,000.00 Total variable costs $921,120.00 $742,600.00 $438,880.00 Total cost $1,651,120.00 $2,062,600.00 $1,808,880.00 Cost per hire $4,169.49 $5,961.27 $4,686.22 Cost per 6 mo survival $5,225.06 $8,057.03 $4,969.45 Cost per 1 year survival $5,693.52 $9,549.07 $5,548.71 Prepared by John Kammeyer-Mueller 64 APPENDIX C: SELECTION MEASURES The selection measures employed by Tanglewood Depar tment Stores are described in the following pages. Tanglewood Casebook to Accompany Staffing Organizations, 8e 65 Tanglewood Department Stores Application Form ________________________________ ___________________ ___________________ LAST name FIRST name Middle Date of application: ________________ ________________ ________________ Month Day Year Date on which you can start work: ________________ ________________ ________________ Month Day Year Contact information: _____________________________ ________________________ _____________________ Street or route City State and ZIP Code _(____)______________________ _(____)__________________ _____________________ Home phone number Alternative phone number e-mail a ddress Position for which you are applying: _______________________________________________ If hired, can you furnish proof that you are eligib le to work in the United States? Yes No Have you ever been convicted of a felony? Yes No If yes, please explain: ___________________________ ________________________________ Education history School, city, and state Date started Date finished Did you graduate? Degree received Field of study GED High school College Business/trade school Graduate Employment history Company name Job title Primary duties Dates employed Reason for leaving Prepared by John Kammeyer-Mueller 66 Tanglewood Department Stores is an Equal Employment Opportunity Employer. It is our policy to maintain and promote nondiscrimination regarding race, color, creed, national origin, mili tary service, age, and sexual orientation in all of our employment practices. Tanglewood Casebook to Accompany Staffing Organizations, 8e 67 Tanglewood Department Stores Interview Form ________________________________ ___________________ ___________________ Candidate last name First name Middle Position applied for: _____________________________ __________________ Topic areas for interview (check each area as it is covered): Does applicant have experience working in a group or team setting? Does applicant feel comfortable working in a participative environment like Tanglewood? Does applicant understand the organization’s missi on and values? Does applicant have a clear understanding of what the position will entail? Does applicant have some knowledge of the camping and outdoor goods market? Does applicant understand basic principles of providing customer service? Is applicant available to work scheduled shift hours? Applicant suitability for position: Very suitable for position; strong recommendation for hire Suitable for position; recommended for hire Not recommended for hire Comments regarding interview: Please print your name below: ________________________________ ___________________ ___________________ Interviewer last name First name Middle Signature: ______________________________________ Date: ________________ Prepared by John Kammeyer-Mueller 68 Marshfield Applicant Exam 1. If David can ride his bicycle 2 miles in 5 minutes, how many miles can he ride his bicycle in 10 minutes? a. 10 miles b. 4 miles c. 7 miles d. none of the above 2. Loretta does not want to sit next to Olivia in the car. Francis will not sit in the front seat, and also does not want to sit next to Greg. Greg wants to sit in the back seat. Who will sit in the front seat? a. Loretta and Greg b. Olivia and Greg c. Loretta and Olivia d. Loretta and Francis 3. SNAKE is to SLITHER as: a. CHICKEN is to FLY b. FLY is to SPARROW c. DOG is to CAT d. DUCK is to FLY 4. Which of the following number sequences do not contain identical numbers? a. 008474 008374 b. 745637 745637 c. 291183 291183 d. 556472 556472 5. Steve is selling shirts for $14.75. If Dominic give s Steve a $20 bill for a shirt, how much change shoul d Steve give him back? a. $6.25 b. $4.25 c. $5.25 d. $3.50 6. There are five pizzas with eight slices each that h ave to be evenly divided among 10 people. How many pieces of pizza will each person receive? a. 5 and 4/5 b. 5 c. 3 and 1/2 d. 4 7. ATLANTIC is to OCEAN as: a. INDIAN is to SEA b. VINEGAR is to OIL c. CHEDDAR is to CHEESE d. FRANCE is to CONTINENT 8. Which of the following words is spelled incorrectly ? a. Fiduciary b. Forefit c. Complexity d. Renaissance 9. Four people are standing in line for movie tickets. Noah is next to Lynn. Jan is not last, and is not next to Lynn. Tom is not next to Lynn. Lynn is after (bu t not next to) Jan. What is the order of these people ? a. Tom-Jan-Lynn-Noah b. Tom-Lynn-Noah-Jan c. Jan-Tom-Noah-Lynn d. Lynn-Jan-Tom-Noah 10. Paramount city is 100 miles west of Nadir city. One train leaves Paramount city traveling east at 40 miles per hour. Another train leaves Nadir city traveling west at 60 miles per hour. How much time will it pa ss before the trains meet? a. ½ hour b. 1 hour c. 2 hours d. Never; they’re going the wrong way Tanglewood Casebook to Accompany Staffing Organizations, 8e 69 Sample Questions from the Personality Questionnaire Directions: For each of the following items, describe how well they apply to use on a scale from 1=this is not a good description of me to 5=this is an excellent description of me. Extraversion _____ I enjoy seeing people at parties. _____ I find talking to new people very comfortable. _____ I seldom feel apprehensive in social settings. _____ I prefer to be around other people when I can. _____ Starting conversations is very easy for me. _____ When in groups, I often am the center of attention. _____ People tell me that I tend to talk frequently. _____ I think that it’s fun to meet new people. _____ I would generally say that I have a large circle of friends and acquaintances. _____ I like to speak up in classes and other group situa tions. Conscientiousness _____ I am a highly detailed person. _____ I meet my commitments in life, and follow through o n what is asked of me. _____ I consistently set goals for myself and complete th em. _____ I prefer a well-ordered schedule to doing things in a random order. _____ I always make sure I do my part in work, and put in extra effort when needed. _____ It is rare for me to be disorganized or messy. _____ I keep very close watch on how much money is in my checking account. _____ I like to sort things so everything is in the right place. _____ It is important for people to contribute to the gro ups they belong to. _____ I always get right to work. _____ If I start something you can bet it will be finishe d. Prepared by John Kammeyer-Mueller 70 Sample Questions from the Marshfield Biodata Questi onnaire and Essay Directions for Biodata essay: Most people find that they experience situations th at lead them to feel like they were under pressure. We would like to know about a specific si tuation in which you felt like there was a great deal to do, and not enough time or resources to complete the project. Try to answer the following questions in your description: 1. What expectations were placed on you? 2. What about the situation was the most stressful for you? 3. What did you do to alleviate your stress? 4. What did you learn from this situation? Examples of other items. All are responded to on a 5-point “very often” to “never” scale: 1. How often have you been too embarrassed to ask some one for help with a project at school, even though you really needed it? 2. How often has have you felt like others were free-r iding on your efforts? 3. How often have you confronted a co-worker or classm ate who did not do enough of the work for a group project? 4. How often have you had to persuade someone to chang e his or her mind? 5. How often have you taken action to “get even” with a co-worker who did something unfair to you? 6. How often do you feel like it would be better to le t others do all the work in a project group because you had other, more pressing, job or school demands? 7. How often have you worked in a group or some activi ty where teamwork was the only way anything could be achieved? 8. How often have you appealed a grade from a class or a rating on a performance appraisal form? 9. How often were you been in a position of leadership in school or extracurricular activities? Tanglewood Casebook to Accompany Staffing Organizations, 8e 71 Retail Market Knowledge Test The following test has been designed by the Tanglew ood Corporation to examine how well potential associates understand the retail market a nd Tanglewood’s unique role in the market. These are only a sample of the items on the test. A. List the top five retail marketing firms (in ter ms of total revenues) in the United States. 1._____________________________________________ 2. _____________________________________________ 3. _____________________________________________ 4. _____________________________________________ 5. _____________________________________________ B. How many Tanglewood store locations are there in the United States? __________ C. Which of the following stores has a retail marke t niche most like Tanglewood? 1. Gander Mountain 2. Target 3. JC Penny 4. Macy’s 5. More than one of the above D. Which of the following is not an advantage of carrying in-house brands? 1. Reduced requirement for price bargaining 2. The ability to set prices relative to other brands 3. In-house brands are less expensive to advertise 4. In-house brands can build up a customer base that i s more loyal 5. All of the above are advantages to in-house brands E. Which of the following statements is true? 1. Older shoppers are as likely as younger shoppers to switch brands 2. Shoppers prefer products advertised with attractive models compared to models that “look like the average person” 3. Highly involved shoppers are no more likely to be c onvinced by rational appeals than shoppers in general 4. The use of celebrities in advertising is an attempt to improve shoppers identification compliance with the marketing message Prepared by John Kammeyer-Mueller 72 APPENDIX D: INDIVIDUAL APPLICANT INFORMATION Biodata Applicant exam Retail Knowledge Conscientiousn ess Extraversion Andrews, David 70 45 65 75 70 Greer, Shauna 60 65 70 50 90 Renoir, Maxine 80 60 40 90 80 Binghome, Bruce 60 55 80 65 55 Yorn, John 40 80 45 60 60 Thomas, Mindy 75 40 30 80 75 Vacarri, Brenda 55 35 45 60 75 Reznor, Thomas 65 90 60 70 80 Durvall, Adam 60 60 55 50 65 Heckman, Jane 85 55 60 90 90 Corporate Average 50 50 50 50 50 Managerial average 60 60 65 55 70 Tanglewood Casebook to Accompany Staffing Organizations, 8e 73 D A V I D A N D R E W S O B J E C T I V E To obtain a position emphasizing management in a major retail organization that will enable me to combine my love of the outdoors a nd camping with a profitable career. E X P E R I E N C E 2010–2015 Northumberland Camping Phoenix, AZ National Sales Manager Increased national sales from $50 million to $100 m illion. Doubled sales per representative from $5 million to $10 million. Suggested new products that increased earnings by 2 3%. 2003–2009 Northumberland Camping Phoenix, AZ District Sales Manager Increased district sales from $5 million to $10 mil lion. Managed 50 sales representatives in 10 Western stat es. Implemented training course for new recruits — spee ding profitability. 2001–2002 Barkole Woods Supply Flagstaff, AZ Marketing Intern Developed skills in marketing a wide variety of out door goods. Worker with senior marketing managers on developing new products. Performed several direct sales calls. E D U C A T I O N 1987–1991 Northern Arizona University Flagstaff, A Z B.A., Business Administration (Marketing Focus). Participated in orientation club 2002–2004 University of Phoenix M.B.A. with a concentration in marketing I N T E R E S T S Running, gardening, carpentry, computers. Prepared by John Kammeyer-Mueller 74 S HAUNA G R E E R O B J E C T I V E I have a real passion for retail, and a real love f or corporate management. I want to find a position that helps me combine these interests and gain some managerial experiences. Alt hough I have not worked extensively in a corporate managerial capaci ty in the past, I believe that my combination of very strong organiza tional skills as well as my general “people aptitude” will make me a n excellent leader. My previous work as an assistant manager at the Tanglewood flagship store in Spokane clearly indicates my apti tude for this work. E X P E R I E N C E 2001–2015 Tanglewood Spokane, WA Assistant Store Manager for Hardlines Aided the store manager in developing new promotion s. Oversaw much of the work in the store’s hardlines a rea. Conducted bi-annual focus groups with representativ es of the community. Managed an operating budget with no overages. 1996–2001 Ferguson and Bardwell South Ridge, WA Shoe department manager Directed a sales force of 30 shoe salespeople. Managed all aspects of sales displays. Developed contacts with local newspapers for advert ising. Received consistent excellent performance reviews f rom supervisors. E D U C A T I O N 1992–1995 University of Illinois Champaign-Urbana, IL B.A., Business Administration and Computer Science. Graduated s umma cum laude . I N T E R E S T S Anything that has to do with retail is a strong int erest for me. I have run in the Chicago and Minneapolis marathons for se veral years. Tanglewood Casebook to Accompany Staffing Organizations, 8e 75 M A X I N E R E N O I R O B J E C T I V E To continue my current career progress towards maximizing my potential in the field of retail management. E X P E R I E N C E 2009–2015 Tanglewood Department Stores Denver, CO Store Manager Motivated a diverse workforce to expand our sales b ase. Managed a change process that restructured the work force completely. Personally supervised during a period of rapid sale s growth. 2007–2008 Macy’s Philadelphia, PA District Sales Manager Presided over the developed of a new department sto re. Managed 20 department stores sales promotions and m arketing efforts Individually implemented methods to decrease labor costs 30% 2001–2006 Tanglewood Department Stores Portland, OR Senior Sales Representative Achieved record sales in the outdoor apparel divisi on Reduced overhead for warehouses, cutting costs by 1 5% 1996–1998 Evenflo Products South Ridge, SC Sales Representative Established a new sales area by partnering with are a grocers Increased sales by 10% through individual effort E D U C A T I O N 1992–1996 Vanderbilt University Nashville, TN B.A., Business Administration and Computer Science. M.B.A. Boston University Prepared by John Kammeyer-Mueller 76 Bruce Binghome Objective I consider myself an active, go-getting type of per son who loves to go for the gold in everything I do. This enthusi asm is a huge part of how I approach my current search for a job in th e area of apparel marketing and promotions. Experience Store Manager 2003-2015. Tanglewood Managed a $10 million annual budget Increased annual sales for two product lines by ove r 50% Worked closely on promoting the “lighter side of Se ars” project Corporate Manager 1996-2010 Benson and Stabler Retailing Initiated internet direct sales approach Oversaw the expansion of the company into 30% more locations Worked with marketing team to develop new website d esign Marketing Representative 1988-1996 Distance Couriers, New York City, NY Secured major contracts with several brokerage hous es Initiated direct marketing system that cut distribu tion costs 30% Developed plans for increasingly sales base by 75% Salesperson 1985-1988 Airplex Designs, San Diego, CA Sold aluminum gliders through direct contact with c lients Earned over $250,000 per year in revenue Managed three interns Education Boston College 1981-1985 B.A. in Anthropology Graduated magna cum laude Interests I am an amateur actor and perform Shakespeare In th e Park References References are available on request. Tanglewood Casebook to Accompany Staffing Organizations, 8e 77 john yorn objective and strengths i want to accomplish a new vision for athletic footwear. innovation is central to my way of life and goals. unlike most marketing professionals, i have a diverse backgroun d that helps me really expand beyond the traditional parameters of the marketing function. professional profile krtg systems advertising manager 2013-2015 i completely revised the way krtg marketed their co rporate employee monitoring software. in the past, they sold direct to corporations they worked with. under my direction, they changed this practice by bundling their software with network server utilities. this lead to a nearly 30% increase in sales in an otherwise depressed market. books-a-million promotions manager 2011-2013 i performed extensive research into cross-product m arketing such as combining book promotions with t-shirts, beverages, food items, board games, etc. in addition, i developed display concep ts for the stores. corporate giving liaison, make-a-wish 2009-2011 in this position i established relationships with l arge corporations’ corporate giving departments in order to raise funds. in this position i was able to develop my skills within a corporate setting, which was very new to me. personal assistant to mr. adam horowitz 2008-2009 in this rather unusual position, i primarily scoure d athletic equipment stores and second-hand boutiques to find vintage athletic gear for mr. horowitz. aaron’s suds and suds laundromat manager 2007 this position was my first opportunity to manage ot hers Education new york university, graduated in 2004 degree in humanities dual minor in women’s studies and jazz performance Prepared by John Kammeyer-Mueller 78 M I N D Y T H O M A S O B J E C T I V E I am seeking a position with managerial responsibil ity and room for advancement. E X P E R I E N C E 2007–2015 Redwood Oaks Mall Vancouver, Canada Mall manager Facilitated interactions with store owners and ensu red adequate consumer traffic in the stores Developed plans for marketing to a more diverse cli ent base. Managed a $15 million annual budget 1998-2006 New Brunswick YMCA New Brunswick, Canada Multi-site manager Managed all aspects of three different YMCA sites. Accountable for approximately 200 full-time staff. 1993-1996 Tangerine Dream Tanning Salon Spokane, WA Entrepreneur Started up new business with capital earned through investors. Coordinated all aspects of marketing, promoting, an d advertising the salon. Sold business at a 800% profit over original expend itures. E D U C A T I O N 1991–1996 Gonzaga College Spokane, WA B.A., Business Administration. 1996–1997 Cornell University Ithaca, NY Master of Arts in Labor and Industrial Relations. I N T E R E S T S Exercise, long-distance running, history, poetry. Tanglewood Casebook to Accompany Staffing Organizations, 8e 79 B R E N D A V A C A R R I O B J E C T I V E To increase my experience in the area of management. While I have worked only for one company in my professional career, I am ready for a change. I also believe this experien ce is especially good for an organization like Tanglewood that shoul d be constantly striving to understand the outdoor marke t niche. E X P E R I E N C E 2001–2015 Hudson River Outdoors Store Manager Managed communications with multiple outdoor produ ct manufacturers requiring frequent interaction and co nflict management skills Coordinated local area product fairs and display opportunities Engaged in the process of reviewing and selecting employees Supervised a staff of 80-90 employees Managed budgets, prepared reports for the board of directors Worked cooperatively with multiple constituents, i ncluding regional outdoors companies, retailers, and product development specialists Oversaw the development of several house brands of merchandise for the outdoor market, including tents , sleeping bags, and camp stoves E D U C A T I O N 1997–2001 Guelph University B.A., English literature. I N T E R E S T S I am a great lover of people and find the process o f understanding human beings endlessly fascinating. Prepared by John Kammeyer-Mueller 80 T H O M A S R E Z N O R O B J E C T I V E Obtaining a rewarding career that allows me to exer cise my knowledge of retail management in a growth-oriented environme nt. E X P E R I E N C E 2009–2015 Tanglewood department stores Seattle, WA Northwest Region Sales Director Increased sales for the region by 45%. Doubled sales per store in troubled markets. Suggested new products that increased earnings by 23%. 2007–2009 Johnson and Johnson New York, NY Marketing Manager, Animal Health Division Supervised expansion into several Asian markets Oversaw a 40% increase in sales in the Asian division Managed a campaign to increase internet advertising to physicians 2001–2004 Interwebz Palo Alto, CA Corporate sales manager Participated in firm’s initial rollout of the Interwebz search tool Oversaw massive expansion of product through intern et marketing 1997–2001 Microsoft Redmond, WA Information Systems Manager Developed code for components of the Windows 3.1 sy stem Performed preliminary research on using internet ap plications E D U C A T I O N 1993–1997 Harvard University B.A., Computer Scienc e. 2004–2007 New York University M.B.A., Marketing Focus I N T E R E S T S Web programming, mathematics, philosophy. Tanglewood Casebook to Accompany Staffing Organizations, 8e 81 Adam Durvall Objective Increasing my experience in the field of management. Experience Sales Manager 2004-2015 Davidson Stores Capitalized on knowledge of retail in a new positio n Interacted with direct salespeople in several depar tment stores Completed courses in marketing fundamentals Sales Associate 1992-2004 Davidson Stores Directly interacted with customer focus groups Learned about the retail market and advertising Engaged in extensive international market research Marketing Manager 1984-1992 Dairymatch Creamers Increased expertise related to management technique s Became versed in the cheese market Helped incorporate changes in product design, inclu ding more string cheese and cheese curds Sales Support 1976-1984 IBM Facilitated repeat business contacts Interacted extensively with end-users in corporatio ns Developed knowledge of the computer mainframe marke t References References are available on request. Prepared by John Kammeyer-Mueller 82 J A N E H E C K M A N O B J E C T I V E Working actively in the field of retail forecasting at the Tanglewood Corporation. I will accomplish this goal! E X P E R I E N C E 2007–2015 Tanglewood Department Stores Seattle, WA Assistant Manager Actively participated in upper management decisions Assessed the need for many products and services, a nd made suggestions for improvement whenever possible Spearheaded an effort to reduce accident rates 2004–2007 Tanglewood Department Stores Seattle, WA Department Manager Lead a dynamic team of individuals to solve busines s problems Developed strong knowledge of retail sales market t hrough extensive product research Collaborated with other department managers to crea te positive cross-functional business synergy 1997–2004 Tanglewood Department Stores Seattle, WA Sales Associate/Shift Leader Maintained a positive environment on the sales floo r Ensured merchandise was stocked and tastefully disp layed Made suggestions to improve the store’s appearance and function E D U C A T I O N 1993–1997 University of Washington Seattle, WA B.A., Business Administration and History. I N T E R E S T S Gardening, taking care of my beautiful Collie Sandy , and bird watching. Tanglewood Casebook to Accompany Staffing Organizations, 8e 83 Subject Notes Andrews, David Always looked up to Tanglewood when working in the camping industry, wants to make the switch to general retail management Believes that his experiences will help him set up the flagship store as the number one outlet for camping goods and other outdoors products in the we stern U.S., and that this will help all the stores achieve new and better returns Admitted the experience of running a store would be a new challenge, but he felt it was something he could handle Greer, Shauna Described herself as dedicated, loyal, and ambitiou s Wanted to use the management of the flagship as a w ay to work into the central corporate function, because she believes she has executive potential Feels that her experiences within Tanglewood have t aught her to “grab the brass ring,” meaning that she thinks she needs to make things happen rather than waiting for change. Renoir, Maxine Believes that her combined experience both within T anglewood and outside Tanglewood make her an especially good candidate Her experience taught her the importance of securin g a unique market segment and really concentrating your efforts in that market Described managing the flagship store as a “dream j ob” Binghome, Bruce Reported that he had a very positive experience wit h Tanglewood and believes that he is an excellent fit for the company’s culture Said that his desire to switch locations was based primarily on the opportunities that the flagship location seemed like the best place for an achievem ent oriented manager in Tanglewood to go Was especially interested in the opportunity to eng age in promotional work, which he hasn’t been able to do as much as he’d like Yorn, John Described himself as a maverick and freethinker who could shake things up for Tanglewood Explained how the current business model for Tangle wood could be enhanced by merging the outdoors theme with a technological theme Said that although his experience was unusual for a position like a retail store manager, he knew that he could accomplish great things within Tanglewood Thomas, Mindy Said she was ready for a change to standard retail management after years of working as a coordinator Especially felt that her people skills were not bei ng adequately utilized in his old position, and sai d “I really do manage people well.” Said that it would be exciting to manage someplace like the flagship for such a major retail presence Vacarri, Brenda Felt that Tanglewood was a great career option beca use her current employer provided her with no further opportunities for growth Described the Tanglewood corporate culture as “orga nic, people focused, and open to new possibilities” Described former employer in positive terms; said s he was sorry to go but needed new opportunities Reznor, Thomas Explained his switch from marketing positions: want s to be closer to the actual sales environment and focus less on creating advertising information Believes his marketing background is actually a str ength, because he has ideas for how to improve the presence of Tanglewood’s flagship store as a market ing tool Expressed optimism about the company’s future and s aid he was eager to get to work Durvall, Adam Described how his experience with another organizat ion makes him a strong choice for future management efforts Said that Tanglewood really needed to work harder t o reduce prices and dedicate more floor space to impulse items Provided suggestions for how to reach new markets o f discount shoppers Heckman, Jane Expressed strong interest in remaining with Tanglew ood because she found it the most dynamic environment possible. Described corporate culture as achievement oriented , team focused, and growth striving Believed her dedication and long service in the com pany make her uniquely qualified Prepared by John Kammeyer-Mueller 84 APPENDIX E: EMPLOYEE SATISFACTION SURVEY As you know, the Tanglewood team is dedicated to en suring that all of our associates and managers have opportunities to express their opinions regarding s tore operations. In an effort to better assess the quality of work life for our associates and managers across the ent ire chain, Tanglewood’s corporate offices are distributing the following annual satisfaction survey to all of our employees. If you could take ten minutes to complet e the following items and mail the survey back to the cen tral office, we would very much appreciate it. We do want to know where you work so we can compare your results to others who work at the same location, but your individual responses will be kept confiden tial. We do not want you to report your name. Store location : ________________________________ _______________ Job title : ______________________________________ _________ Store location : ________________________________ _______________ For each of the following questions, check the box that best describes your feelings: Strongly disagree (5) Disagree (4) Neutral (3) Agree (2) Strongly agree (1) 1. The work that I do at Tanglewood is interesting and enjoyable to me. 2. I look forward to doing my job most of the time. 3.My supervisor has done a good job of showing me how to do my job. 4. I trust my supervisor and think he/she does a good job. 3. I think that they system for paying employees is basically fair. 4. The compensation I receive for my work is satisfactory. 5. The health benefits at Tanglewood are adequate. 6. I think that Tanglewood provides employees with great benefits.