Organizations are combinations of physical, financial, and human capital
Human capital
Knowledge, skills and abilities of people
Their motivation to do the job
Scope of human capital
Employee costs are over 25% of revenues for most organizations
Organizations that capitalize on human capital have a strategic advantage over their competitors
Nature of Staffing
Definition
“Process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness”
The new economy, very much the Internet and the entrepreneurial opportunities it created intensified the competition for outstanding people.
Rajat Gupta, Managing Director, McKinsey and Company
I think about this in hiring, because our business all comes down to people…In fact, when I’m interviewing a senior job candidate, my biggest worry is how good they are at hiring. I spend at least half the interview on that.
Jeff Bezos, CEO, Amazon
Discussion Questions
What would be the potential problems with a staffing process in which vacancies were filled:
On a lottery basis from among job applicants?
On a first come-first hired basis?
What would be the advantages of using one of the above processes?
