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Chapter 2: Recruitment
Introduction
How do firms bring employees to the organization?
And what patterns of careers they will have once they are there?
Example 1: Career Patterns at Acme, Incorporated
What Do We Learn from Example 1 ?
Most management employees are in the first four levels.
At level 2-8, most employees were not hired from the outside, but instead were promoted from within.
Because of promotion from within, manager in upper levels have substantial experience at Amce on average.
Turnover Career in Acme
Movement between levels (promotion) is more rapid at lower levels, since the average number of years in the current job is longer in upper levels( 4th-5th column).
Many leave Acme very quickly after being hired (6th-7th column).
Those who stay at Acme beyond the first year or so would have a good chance of staying for many years(8th-9th column).
What Do We Learn from Sorting?
There seems to be evidence of sorting in the first few years on the job (matching).
If employees survive the sort, they often enjoy careers at the company that last for many years.
Two General Issues
Screening Job Applicants
One strategy for attracting good quality job applicants is to offer a high levels of pay or benefits.
The personnel office will be flooded with resumes.
Higher quality applicants will be more likely to apply for the job than if pay was lower, so do low quality applicants.
What Problems Will Appear in Recruitment?
Some undesirable workers will slip through the hiring process and become employees.
While some desirable workers will get lost in shuffle and never hired.
The problem of the wrong type of applicant applying to the firm is called adverse selection.
A number of approach can be used to mitigate the problem of adverse selection in recruiting.
Credentials
An effective approach to weeding through resumes of job applicants is to look for credentials.
Informativeness of the Credential
Ability to perform well on the job must be possibility correlated with abi
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