Selecting Employees to Fit the Job and the Organization

1
Selecting Employees to Fit the Joband the
Organization
Chapter 7
2
Chapter Objectives

• Describe the strategic importance of selection
• Present an overview of the selection process
• Describe the techniques for assessing job
  applicants
• Discuss the perspective of applicants
• Describe the legal considerations in selection
• Describe global selection choices

3
The Strategic Importance of Selection

• Selection
• The process of obtaining and using information
  about job applicants to determine who should be
  hired for long- or short-term positions.
• First, assess job requirements
• Then assess that applicants are
• Capable of high productivity
• Motivated to stay with the organization for as
  long as the organization wants to employ them
• Able to engage in behaviors that result in
  customer satisfaction
• Capable of implementing the strategy of the
  company.

4
Uses of Selection Decisions

• Fill open jobs
• Fill future openings
• Promote
• Transfer
• Appoint to task force
• Decide to mentor

5
Selection and Strategy Implementation

• Effect of Selection Practices
• Selection practices contribute to (or detract
  from) an organizations strategic capabilities.
• Effect on Executives
• Managerial competencies change as the business
  changes through growth or acquisition.
• Other Employees
• All employees need to perform well and be good
  corporate citizens.

6
The Economic Utility of Effective Selection
Practices
Economic utility the net monetary value
associated with using a a selection procedure.

• Value of Decision
• Potential value is high for key positions
• Accumulated effect of good (or bad) selection
  decisions adds up
• Risk of harm and lawsuits can be minimized by
  effective screening

• Cost of Decision
• Time and resources used to collect info about
  applicants
• More expensive procedures justified when
• Tenure will be long.
• Increases in performance have large impact.
• There are many applicants.

7
The Consequences of Correct and Incorrect
Selection Decisions
High performance
Reject a qualified candidate (incorrect decision)
Accept a qualified candidate (correct decision
How Employee Performs
Reject an unqualified candidate (correct decision)
Accept an unqualified candidate (incorrect decisio
n)
Low performance
Do not offer job
Offer the job
Employers Selection Decision
EX 7.1 (adapted)
8
The HR Triad Roles and Responsibilitiesfor
Selection

• Line Managers
• Identify staffing needs
• Help HR define performance criteria
• Help HR develop selection tools
• Coordinate process with applicants and HR
• Administer some selection tests
• Comply with laws
• Provide accurate reference info
• Support ADA

• HR Professionals
• Develop/choose reliable and valid selection tests
• Coordinate selection process
• Select and evaluate vendors of selection services
• Arrange interviews
• Train others involved in selection
• Keep records and monitor outcomes for legal
  compliance

• Employees
• Apply for transfers, promotions
• Identify criteria for evaluating performance
• Interview/select new group members
• Attend training in selection processes
• Self-select into jobs that are good fit
• Inform managers of disabilities requiring
  accommodation

9
How Centralizing Selection and Placement
Activities Can Benefit Job Applicants

• Benefits for Applicants
• Convenient
• Applicants go to only one place to apply for all
  jobs in the company.
• Good Match to Job
• Specialists trained in staffing techniques do
  hiring, so the selection decisions are often
  better, resulting in personal success.
• Fair
• People who know about the many legal regulations
  relevant to selection handle a major part of the
  hiring process, which improves legal compliance.

EX 7.2
10
How Centralizing Selection and Placement
Activities Can Benefit Employers

• Benefits for Employers
• Efficient
• The company can consider each applicant for a
  variety of jobs, which is efficient.
• Effective
• Specialists trained in staffing techniques do
  hiring, so the selection decisions are often
  better, resulting in better business performance.
• Consistent
• Common selection standards make it easier to
  maintain a workforce of consistent quality, which
  facilitates employee mobility between business
  units.

EX 7.2 (contd)
11
Selection within an Integrated HRM System
EX 7.3
12
The Selection Ratio

• The proportion of applicants hired in relation to
  the number of applicants in the initial pool.
• Lower ratio More opportunity to find
  outstanding candidates
• Lower ratios occur when
• Recruitment is effective.
• There is high unemployment.

13
Overview of the Selection Process
Establish the criteria of interest
Choose predictors and assessment techniques
Decide when to measure each predictor
Synthesize information and make the selection
14
Possible Assessment Techniques for Several
Competencies
MQ Is a minimum qualification MT May be
acquired through training or on the job
(desirable) preference may be given to those
who possess this competency MA Can be
accommodated within reason WT Will be acquired
through training or on the job not evaluated
in the selection process SAF Supplemental
Application Form
WKT Written Knowledge Test WS Work
Sample PCD Physical Capability
Demonstration SPI Structured Panel
Interview DMI Departmental Manager
Interview BI/REF Background Investigation/Refere
nce Check PAF Performance Appraisal Form
(internal hires only)
EX 7.4
15
Establish the Criteria of Interest

• Criteria
• Outcomes that selection decisions are intended to
  predict.
• What is Effective Performance?
• Determined by using job analysis to examining the
  organizational context
• Company culture
• Values
• Business Strategy
• Structure

16
Choose Predictors and Assessment Techniques

• Predictors
• Pieces of Information used to make a selection
  decision
• Applications, resumes, tests, interviews
• Assessment Techniques
• Designing predictors
• Choosing how to measure the predictors of
  interest
• Establish Validity
• Affirming the usefulness of gathered information
  for predicting applicants outcomes

17
Basic Validity Strategies
Content Validation
Criterion-related Validation
Validity
Validity Generalization
18
Content Validation

• Content Validation
• Using job analysis results to build a rational
  argument for why a predictor should be useful.
• Competency modeling is used to determine job
  requirements
• Expert(s) determine which predictors will best
  predict job success.
• Most commonly used validation strategy
• Especially useful when organization is creating
  new jobs
• Practical approach, but subjective

19
CriterionRelated Validation

• Individuals are assessed on both the predictor
  and their job performance
• Analysis of statistical correlations is used to
  establish the relationship between predictor
  scores and criteria.
• High (low) predictor scores correlate with high
  (low) job performance
• Costly and requires a large number of incumbents
  to use this approach.

20
Validity Generalization

• Assumes that results of criterion-related
  validity studies performed in companies can be
  generalized to other companies.
• Relatively new approach
• Many selection techniques have been shown to be
  valid across variety of jobs
• Predictors must be relevant to the job.

21
Validity Estimates for Several Selection
Techniques
EX 7.5
22
Designing the Selection Process

• There may be several means that can be used to
  assess each predictor.
• For example, communication skills can be assessed
  by
• Supplemental application
• Panel Interview
• Manager Interview
• Reference Check

23
Choosing Reliable Predictors

• Reliability
• The degree to which a predictor yields
  dependable, consistent results
• Reliable predictors dont change different
  circumstances (e.g., different test
  administrators or interviewers)
• Test-Score Banding
• Grouping applicants into clusters considered
  equally qualified for a job, despite small
  differences in their scores.
• A secondary criteria is used to break ties
  within the band.

24
Decide When to Measure Each Predictor

• In most selection processes, there will always be
  more applicants than there are positions to be
  filled.
• Use less expensive procedures early in the
  process to remove applicants fail to do well
  early in the process.
• Use information from previous steps to decide
  which applicants will move to the next more
  expensive step in the selection process.

25
Synthesize Information to Choose Appropriate
Candidates

• Multiple Hurdles
• An applicant must exceed fixed levels of
  proficiency on all the predictors in order to be
  accepted.
• Compensatory
• A high score on one predictor can compensate for
  a low score on another predictor.
• Combined
• Screening applicants who meet one or more
  specific requirements, and then using a
  compensatory approach in comparing the applicants
  who have passed the required hurdle.

26
An Approach to Selecting Team Members in a Total
Quality Production Plant
EX 7.6
27
Techniques for Assessing Applicants
Personal History Assessments
Reference and Background Checks
Medical Tests
Assessment Techniques
Written Tests
Interviews
Work Simulations
Assessment Centers
28
Personal History Assessments

• Past behavior is a good predictor of future
  performance
• Application Blank
• Helps determine if applicant possesses minimum
  job-related requirements and applicants
  preferences.
• Education and experience are important
  considerations for high-level jobs.
• Biodata Tests
• Asks applicants to provide autobiographical
  information about past and current activities.
• Are long and items may appear to be unfair,
  invasive, and not job-related to applicants.
• Are effective predictors of overall performance.

29
Reference Checks and Background Verification

• Reference Verification
• Verify that information on applications and
  resumes is accurate.
• Negligent hiring employers have a legal duty to
  not hire unfit persons.
• Employers can hire outside investigators or
  personally contact prior employers.
• Not an infringement on privacy if job-related.
• May be difficult to obtain information because
  previous employers fear defamation lawsuits.

30
Verification Checks Reveal Applicants Lies
Note Information checked included employment
histories, educational background, and
credentials. Figures indicate the percentage of
time the information reported by the applicant
did not agree with the information revealed
during the reference checks.
EX 7.7
31
Written Tests

• Ability Tests
• Measure potential of individual to perform, given
  the opportunity
• Types of abilities
• Psychomotor
• Physical
• Cognitive
• Used by about 30 of employers
• May result in adverse impact

• Knowledge Tests
• Assess what a person knows at the time of taking
  the test
• Useful for jobs requiring specialized or
  technical knowledge

32
Written Tests (contd)

• Personality Tests
• Assess the unique blend of personal
  characteristics that define individuals and
  determine their patterns of interactions with the
  environment.
• Big Five personality dimensions
• Extraversion
• Agreeableness
• Conscientiousness
• Emotional stability
• Openness to experience

• Integrity Tests
• Can predict dishonest and disruptive work
  behaviors
• Paper-and-pencil tests have replaced lie
  detectors which were banned as selection tools by
  Employee Polygraph Protection Act of 1988

33
Work Simulations (Work Samples)

• Applicants perform activities similar to those
  required on the job
• Difficult to fake
• More valid than other methods
• Less likely than other methods to unfairly
  discriminate
• Expensive to develop

34
Assessment Centers

• Candidates participate in multiple assessment
  techniques
• Techniques simulate the job environment
• Candidates evaluated on multiple job dimensions
• Costly, but nondiscriminatory and valid across
  cultures

• Typical Techniques
• In-Basket exercise
• Leaderless group discussion
• Business game

35
Interviews

• Most widely used selection procedure
• Structured and semi-structured interviews are
  more valid than unstructured
• Structured interviews ensure the same questions
  will be asked of all applicants.
• Unstructured interviews lack validity and
  reliability.

• Interview Design
• Structured questions
• Focus on behavior
• Systematic scoring
• Multiple interviewers
• Interviewer training

36
Examples of Questions to Use in a Structured
Interview
COMPETENCY BEING ASSESSED RELATIONSHIP
BUILDING Interview Questions Designed to Focus on
Behavioral Descriptions 1. Sketch out two or
three key strengths you have in dealing with
people. Can you illustrate the first strength
with a recent example? Repeat same probes for
other strengths. Probes When did this
example take place? What possible negative
outcomes were avoided by the way you handled this
incident? How often has this situation
arisen? What happened the next time this came
up? 2. Tell me about a time when you used your
people skills to solve a customer
problem. Probes When did this take place?
What did the customer say? What did you say
in response? How did the customer react?
Was the customer satisfied? 3. Maintaining a
network of personal contacts helps a manager keep
on top of developments. Describe some of your
most useful personal contacts. Probes Tell
me about a time when a personal contact helped
you solve a problem or avoid a major
blunder. How did you develop the contact in
the first place? What did you do to obtain
the useful information from your contact?
When was the next time this contact was
useful? What was the situation at that
time? How often in the past six months have
personal contacts been useful to you?
EX 7.8
37
Comparison of Practices Used in Selected
Countries (Part A)
EX 7.9
38
Behavioral Job Interviews

• Ask interviewee to describe specific instances of
  past behavior
• Instance illustrates relevant competency
• Research shows past behavior is best predictor of
  future behavior.

• Ask interviewee to respond to hypothetical job
  situations
• Applicant may describe or role-play what she or
  he would do.
• Research shows behavioral intentions predict
  behavior.

39
Trained Interviewers

• Give raters specific criteria and scoring keys to
  evaluate responses
• Use panel interviews for efficiency and
  reliability
• Train interviewers
• Minimize bias and first impressions
• Ensure job-relatedness and consistency
• Provide frame-of-reference training

40
Medical Tests

• Testing restrictions under the Americans with
  Disabilities Act (ADA) of 1990
• It is illegal to inquire about disabilities
  before a job offer is made.
• General health exams can only be given after a
  job offer has been made.
• Employers are expected to make reasonable
  accommodations (but not preferences) for
  otherwise qualified disabled candidates.
• Job analysis can support screening (denial of
  employment) related to physical, sensory,
  perceptual, and psychomotor disabilities.

41
Medical Tests

• Genetic Testing and Screening
• Identifies individuals risks of future medical
  problems
• Controversial
• Restrictions at state level
• Federal legislation likely
• Drug and Alcohol Testing
• Preemployment testing is permissible and may be
  mandatory
• Permissible under ADA

42
Drug Test Results
EX 7.10
Note Based on 5.7 million tests conducted by
Quest Diagnostics, 2002.
43
Comparison of Practices Used in Selected
Countries (Part B)
EX 7.11
44
The Perspective of Applicants

• Applicants reactions to the selection process
  influence their
• Decision to join an organization
• Decision to remain with an organization
• Level of work motivation
• Socialization into the organization
• Applicants judge selection fairness by
• The content of selection measures
• The fairness of the selection process
• The results of the selection process

45
Laws and Regulations That Prohibit Discrimination

• Title VII of the Civil Rights Act
• Executive Order 11246
• Age Discrimination in Employment Act
• Rehabilitation Act
• Americans with Disabilities Act

46
Federal Guidelines and Professional Standards

• Equal Employment Opportunity Commission (EEOC)
  publishes
• Uniform Guidelines on Employee Selection
  Procedures (1978)
• Other EEOC guidelines (e.g., national origin,
  age, and religious discrimination)
• Technical Assistance Manual on Employment
  Provisions (ADA)
• Other Professional Standards
• American Psychological Association
• Society for Industrial-Organizational Psychology

47
Detecting Unfair Discrimination

• Person (plaintiff) alleging discrimination
• Files complaint with EEOC (Equal Employment
  Opportunity Commission).
• EEOC investigates and attempts resolution.
• If plaintiff continues and files lawsuit, he/she
  must demonstrate a prima facie case of
  discrimination.

48
Detecting Unfair Discrimination (contd)

• Disparate Treatment
• Illegal discrimination against an individual
• Prima Facie Cases of Discrimination
• Individual belongs to a protected group
• Individual applied for job for which employer
  seeking applicants
• Individual is qualified but was rejected
• Employer kept looking for people with
  applicants qualifications

49
Detecting Unfair Discrimination (contd)

• Adverse (Disparate) Impact
• Discrimination against an entire protected group
• Based on statistics from large number of hiring
  decisions
• Focuses on consequences of selection practices,
  not employers intent
• May be shown by audit of EEO-1 reports
• Labor Market Comparisons
• Compare representation of protected group to the
  relevant labor market.
• Point of contention is what is the relevant
  labor market.

50
Detecting Unfair Discrimination (contd)

• The 80 (Four-fifths) Rule
• Evaluating adverse impact by comparing the
  representation of a protected group in an
  applicant pool to its representation among those
  hired, fired, promoted, transferred or demoted.
• Example
• Selection of firefighters with physical ability
  test
• 10 pass rate for women
• 30 pass rate for men
• 10/30 67.
• The pass rate for women is less than 80 the pass
  rate of men there is evidence of adverse impact.

51
Detecting Unfair Discrimination (contd)

• Bases for employers defense in prima facie cases
  of disparate treatment or disparate impact
• Job relatedness
• Business necessity
• Bona fide occupational qualification (BFOQ)
• Bona fide seniority system
• Voluntary affirmative action program

52
Legal Considerations for Global Selection

• 1991 Civil Rights Act
• American civil rights laws cover U.S. citizens
  employed abroad by American multinationals.
• Foreign companies operating within the U.S. must
  adhere to U.S. employment laws.
• There are exceptions (e.g. trade treaties) and
  this is complex legal and social area.
• Fortino v. Quasar Co.

53
Selecting Managers Pros and Cons of PCNs, HCNs,
and TCNs
PARENT-COUNTRY NATIONALS (PCNS)

• Advantages
• Organizational control and coordination is
  maintained and facilitated.
• Promising managers are given international
  experience.
• PCNs are the best people for the job.
• The subsidiary will likely comply with the
  company objectives, policies, and so forth.

• Disadvantages
• The promotional opportunities of HCNs are
  limited.
• Adaptation to the host country may take a long
  time.
• PCNs may impose an inappropriate headquarters
  style.
• Compensation for PCNs and HCNs may differ.

HOST-COUNTRY NATIONALS (HCNS)

• Advantages
• Language and other barriers are eliminated.
• Hiring costs are reduced, and no work permit is
  required.
• Continuity of management improves, since HCNs
  stay longer in positions.
• Government policy may dictate the hiring of HCNs.
• Morale among HCNs may improve as they see the
  career potentials.

• Disadvantages
• Control and coordination of headquarters may be
  impeded.
• HCNs have limited career opportunities outside
  the subsidiary.
• Hiring HCNs limits opportunities for PCNs to gain
  overseas experience.
• Hiring HCNs could encourage a federation of
  national rather than global units.

EX 7.12
54
Selecting Managers Pros and Cons of PCNs, HCNs,
and TCNs
THIRD-COUNTRY NATIONALS (TCNS)

• Advantages
• Salary and benefit requirements may be lower than
  for PCNs.
• TCNs may be better informed than PCNs about the
  host-country environment.

• Disadvantages
• Transfers must consider possible national
  animosities.
• The host government may resent the hiring of
  TCNs.
• TCNs may not want to return to their own
  countries after assignment.

EX 7.12 (contd)