MHR9 e PPT07

MANAGING HUMAN RESOURCES
Chapter 7
Selecting Employees to Fit the Job and the Organization
Copyright 2005 Thomson Business & Professional Publishing. All rights reserved.
PowerPoint Presentation by Charlie Cook The University of West Alabama
Chapter Outline
THE STRATEGIC IMPORTANCE OF SELECTION
Selection and Strategy Implementation The Economic Utility of Effective Selection The HR Triad THE HR TRIAD: ROLES AND RESPONSIBILITIES IN SELECTING APPLICANTS Selection within an Integrated HRM System
OVERVIEW OF THE SELECTION PROCESS

MANAGING CHANGE: SELECTING EMPLOYEES FOR A NEW PLANT Establish the Criteria of Interest Choose Predictors and Assessment Techniques MANAGING TEAMS: SELECTING THE WALT DISNEY CAST Decide When to Measure Each Predictor Synthesize Information to Choose Appropriate Candidates
72
Chapter Outline (contd)

TECHNIQUES FOR ASSESSING JOB APPLICANTS
Personal History Assessments Reference Checks and Background Verification Written Tests Work Simulations Assessment Centers Interviews Medical Tests
THE PERSPECTIVE OF APPLICANTS

Fair Content? Fair Process?
MANAGING TEAMS: Hiring At Advanced Financial Solutions Results of the Selection Decision
73
Chapter Outline (contd)

LEGAL CONSIDERATIONS IN SELECTION
Laws and Regulations That Prohibit Discrimination Federal Guidelines and Professional Standards Detecting Unfair Discrimination Defending Discriminatory Practices Legal Considerations for Global Selection
GLOBAL SELECTION CHOICES

MANAGING GLOBALIZATION: Hiring Is No Laughing Matter For Cirque Du Soleil CASE STUDY: SELECTING PATIENT ESCORTS
74
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.
75
Uses of Selection Decisions
Fill open jobs Fill future openings Promote Transfer Appoint to task force Decide to mentor
76
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.
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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.
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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
Low performance
Reject an unqualified candidate (correct decision)
Accept an unqualified candidate (incorrect decision)
Do not offer job
Offer the job

EX 7.1 (adapted)
Employers Selection Decision

Copyright 2005 Thomson Business & Professional Publishing. All rights reserved. 79
The HR Triad: Roles and Responsibilities for Selection

Line Managers
Identify staffing needs Help HR define performance criteria Help HR develop selection tools
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
Coordinate process with applicants and HR

Administer some selection tests Comply with laws
Provide accurate reference info

Support ADA
Inform managers of disabilities requiring accommodation
710
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
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)
Selection within an Integrated HRM System
EX 7.3
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.
714
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
715
Possible Assessment Techniques for Several Competencies
MQ MT
= =
MA WT
= =
SAF =
Is a minimum qualification May be acquired through training or on the job (desirable); preference may be given to those who possess this competency Can be accommodated within reason Will be acquired through training or on the job; not evaluated in the selection process Supplemental Application Form
WKT WS PCD SPI DMI BI/REF PAF
= = = = = = =
Written Knowledge Test Work Sample Physical Capability Demonstration Structured Panel Interview Departmental Manager Interview Background Investigation/Reference Check Performance Appraisal Form (internal hires only)
EX 7.4
716
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
717
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
718
Basic Validity Strategies
Content Validation
Criterion-related Validation
Validity
Validity Generalization
719
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
720
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.
721
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.
722
Validity Estimates for Several Selection Techniques
EX 7.5
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
724
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.
725
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.
726
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.
727
An Approach to Selecting Team Members in a Total Quality Production Plant
EX 7.6
Techniques for Assessing Applicants

Personal History Assessments
Medical Tests
Reference and Background Checks
Interviews
Assessment Techniques
Written Tests
Assessment Centers
Work Simulations
729
Personal History Assessments

Past behavior is a good predictor of future performance
Application Blank
Helps determine if applicant possesses minimum jobrelated 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.
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.
731
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. Copyright 2005 Thomson Business & Professional Publishing. All rights reserved.
EX 7.7
732
Written Tests
Ability Tests
Measure potential of individual to perform, given the opportunity
Knowledge Tests
Assess what a person knows at the time of taking the test Useful for jobs requiring specialized or technical knowledge
Types of abilities:
Psychomotor Physical Cognitive Used by about 30% of employers May result in adverse impact
733
Written Tests (contd)

Personality Tests
Assess the unique blend of personal characteristics that define individuals and Determine their patterns of interactions with the environment.
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
Big Five personality dimensions:

Extraversion Agreeableness Conscientiousness Emotional stability Openness to experience
734
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
735
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
Interviews
Most widely used selection procedure
Structured and semistructured 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
737
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 you say in response? Was the customer satisfied? What did the customer say? How did the customer react?
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
Comparison of Practices Used in Selected Countries (Part A)
EX 7.9
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.
740
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
741
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.
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
743
Drug Test Results
Note: Based on 5.7 million tests conducted by Quest Diagnostics, 2002. Copyright 2005 Thomson Business & Professional Publishing. All rights reserved.
EX 7.10
744
Comparison of Practices Used in Selected Countries (Part B)
EX 7.11
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
746
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
747
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
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.
749
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

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.
751

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.
752

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
753
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.
754
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.
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.
HOST-COUNTRY NATIONALS (HCNS) 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
755
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)
TERMS TO REMEMBER
Ability test Adverse impact Application blank Assessment centers Behavioral job interviews Biodata test Bona fide occupational qualification (BFOQ) Bona fide seniority system Business necessity Combined approach Compensatory approach Content validation Criteria Criterion-related validation Disparate treatment Economic utility 80% rule Job-relatedness Knowledge test Multiple-hurdles approach Personality tests Predictors Reliability Selection Selection ratio Structured job interview Test-score banding Unstructured job interview Validity Validity generalization Work simulations
757

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MANAGING HUMAN RESOURCES

Selecting Employees to Fit the Job and the Organization

PowerPoint Presentation by Charlie Cook The University of West Alabama

OVERVIEW OF THE SELECTION PROCESS

Chapter Outline (contd)

THE PERSPECTIVE OF APPLICANTS

Chapter Outline (contd)

GLOBAL SELECTION CHOICES

The Strategic Importance of Selection

Then assess that applicants are:

Uses of Selection Decisions

Selection and Strategy Implementation

The Economic Utility of Effective Selection Practices

The Consequences of Correct and Incorrect Selection Decisions

How Employee Performs

Reject an unqualified candidate (correct decision)

Accept an unqualified candidate (incorrect decision)

Do not offer job

Offer the job

Employers Selection Decision

The HR Triad: Roles and Responsibilities for Selection

Coordinate process with applicants and HR

Provide accurate reference info

Inform managers of disabilities requiring accommodation

Good Match to Job:

How Centralizing Selection and Placement Activities Can Benefit Employers

Selection within an Integrated HRM System

The Selection Ratio

Overview of the Selection Process

Choose predictors and assessment techniques

Decide when to measure each predictor

Synthesize information and make the selection

Possible Assessment Techniques for Several Competencies

WKT WS PCD SPI DMI BI/REF PAF

Establish the Criteria of Interest

What is Effective Performance?

Choose Predictors and Assessment Techniques

Basic Validity Strategies

Competency modeling is used to determine job requirements

Costly and requires a large number of incumbents to use this approach.

Validity Estimates for Several Selection Techniques

Designing the Selection Process

Choosing Reliable Predictors

Decide When to Measure Each Predictor

Synthesize Information to Choose Appropriate Candidates

An Approach to Selecting Team Members in a Total Quality Production Plant

Techniques for Assessing Applicants

Reference and Background Checks

Personal History Assessments

Reference Checks and Background Verification

Verification Checks Reveal Applicants Lies

Written Tests (contd)

Big Five personality dimensions:

Work Simulations (Work Samples)

Examples of Questions to Use in a Structured Interview

Comparison of Practices Used in Selected Countries (Part A)

Behavioral Job Interviews

Ask interviewee to respond to hypothetical job situations

Use panel interviews for efficiency and reliability

Drug and Alcohol Testing

Drug Test Results

Comparison of Practices Used in Selected Countries (Part B)

The Perspective of Applicants