Human Resource Management 10th Edition Chapter 6 SELECTION © 2008 by Prentice Hall

HRM in Action: Substance Abuse Testing 80% of larger corporations in U.S. require workplace drug testing Drug users are more than twice as likely to leave work early or miss days, are two-and-a-half times more likely to be absent for eight days or more and are three times more likely to be late for work. More than three-and-a-half times more likely to be involved in a workplace accident and five times more likely to file a workers’ compensation claim © 2008 by Prentice Hall

HRM in Action: Substance Abuse Testing (Cont.) Most experts regard blood tests as the forensic benchmark against which to compare others Hair sample analysis claim it can detect drug use from three days to 90 days after drug consumption Oral fluid testing is especially well-suited to cases of reasonable suspicion and post accident testing © 2008 by Prentice Hall

Selection Process of choosing from group of applicants the individual best suited for a particular position and the organization Goal of selection process is to properly match people with jobs and organization Top performers contribute from 5-22 times more value to companies than midlevel or low performers © 2008 by Prentice Hall

Environmental Factors Affecting the Selection Process Other HR functions Legal considerations Decision making speed Organizational hierarchy Applicant pool Type of organization Probationary period © 2008 by Prentice Hall

Other HR Functions Selection process affects, and is affected by, virtually every other HR function. © 2008 by Prentice Hall

Legal Considerations Human resource management is greatly influenced by legislation, executive orders, and court decisions Guiding principle -Why am I asking this question? If information is job related, usually asking for the information is appropriate © 2008 by Prentice Hall

Speed of Decision Making Time available to make selection decision can have major effect on selection process © 2008 by Prentice Hall

Organizational Hierarchy Different approaches to selection are generally taken for filling positions at different levels in organization © 2008 by Prentice Hall

Organizational Hierarchy (Cont.) Extensive background checks and multiple interviews would most likely apply for the executive position An applicant for a clerical position would probably take a word processing test and perhaps have a short employment interview © 2008 by Prentice Hall

Number of qualified applicants recruited for a particular job Applicant Pool Number of qualified applicants recruited for a particular job © 2008 by Prentice Hall

Selection Ratio Number of people hired for a particular job compared to number of individuals in the applicant pool Selection ratio of 0.10 indicates that there were 10 qualified applicants for an open position © 2008 by Prentice Hall

Type of Organization Prospective employees in private sector screened with regard to how they can help achieve profit goals Government civil service systems identify qualified applicants through competitive examinations Individuals considered for positions in not-for-profit organizations must be qualified and dedicated to work © 2008 by Prentice Hall

Probationary Period Period that permits evaluating employees ability based upon performance May be a substitute for certain phases of the selection process Job related © 2008 by Prentice Hall

The Selection Process External Environment Internal Environment Recruited Candidate Preliminary Interview Review of Applications and Résumés Selection Tests Rejected Applicants Employment Interviews Pre-Employment Screening: Background and Reference Checks Selection Decision Physical Examination New Employee © 2008 by Prentice Hall

Preliminary Interview Removes obviously unqualified individuals Positive benefits - Applicant may be qualified for another position with the firm © 2008 by Prentice Hall

Preliminary Interview - Telephone Interview Narrow pool of applicants before having formal face-to-face interview Cut down on wasted time and effort Lacks advantages of face-to-face contact Not possible to observe nonverbal cues © 2008 by Prentice Hall

Preliminary Interview - Videotaped Interview Using structured interview format designed by hiring firm, interviewer can videotape candidate’s responses Interviewer may not interact with the candidate Does not replace personal interviews Allows for broader search © 2008 by Prentice Hall

Review of Applications Application form must reflect not only firm’s informational needs, but also EEO requirements. Essential information is included and presented in standardized format May vary from firm to firm, and even by job type within organization © 2008 by Prentice Hall

Preprinted Statements on Application Form Certifies that information provided on form is accurate and true Should state position is employment at will Gives permission to have background and references checked © 2008 by Prentice Hall

Review of Résumés Résumé - Goal-directed summary of experience, education, and training developed for use in selection process Professional/managerial applicants often begin selection process by submitting résumé Includes career objective for specific position All important concept of relevancy © 2008 by Prentice Hall

Sending Résumés via the Internet Most large companies now use automated tracking systems Résumés deviating from assumed style are ignored Résumé should be as computer/scanner friendly as possible © 2008 by Prentice Hall

Keyword Résumé Keywords - Words or phrases used to search databases Keyword résumé - Adequate description of job-seeker’s characteristics and industry-specific experience presented in keyword terms to accommodate the computer search process © 2008 by Prentice Hall

Additional Recommendations Avoid special characters. Do not use tabs; use space bar. Do not use word-wrap feature; use hard returns to insert line breaks. Use default font and size. Do not use boldface and italics. Do not use blocks. Do not use columns. Do not place names or lines on sides of résumés © 2008 by Prentice Hall

Administration of Selection Tests Advantages Potential Problems using Selection Tests Characteristics of Properly Designed Selection Tests © 2008 by Prentice Hall

Advantages of Selection Tests Reliable and accurate means of selecting qualified candidates Cost small in comparison Identify attitudes and job-related skills that interviews cannot recognize © 2008 by Prentice Hall

Potential Problems Using Selection Tests Can do v. Will do Legal liabilities Test anxiety © 2008 by Prentice Hall

Characteristics of Properly Designed Selection Tests Standardization - Uniformity of procedures and conditions of administering test Objectivity - Everyone scoring a test obtains same results Norms - Frame of reference for comparing applicant's performance with that of others © 2008 by Prentice Hall

Characteristics of Properly Designed Selection Tests (Cont.) Reliability - Provides consistent results Validity - Measures what it is supposed to measure (Basic Requirement) Requirement for Job Relatedness – Test must work without having adverse impact on minorities, females, and individuals with backgrounds or characteristics protected under law © 2008 by Prentice Hall

Types of Validation Studies Criterion-related validity - Comparing scores on selection tests to some aspect of job performance Content validity - Performs certain tasks actually required by job. Construct validity - Measures certain traits or qualities important in performing job © 2008 by Prentice Hall

Types of Employment Tests Cognitive aptitude Psychomotor abilities Job Knowledge Work-sample (simulation) Vocational interests Personality © 2008 by Prentice Hall

Cognitive Aptitude Tests Measures individual’s ability to learn, as well as to perform a job © 2008 by Prentice Hall

Psychomotor Abilities Tests Strength Coordination Dexterity © 2008 by Prentice Hall

Job Knowledge Tests Measure candidate's knowledge of duties of position for which he or she is applying Are commercially available © 2008 by Prentice Hall

Work-Sample Tests requiring applicant to perform task or set of tasks representative of job Such tests by their nature are job related Produces highly validity, reduces adverse impact, and is more acceptable to applicants © 2008 by Prentice Hall

Vocational Interests Indicates occupation in which person is most interested and most likely to receive satisfaction from Primary used in counseling and vocational guidance © 2008 by Prentice Hall

Personality Tests Traits Temperaments Dispositions © 2008 by Prentice Hall

Unique Forms of Testing Genetic Graphoanalysis Polygraph Tests © 2008 by Prentice Hall

Genetic Testing Determines whether person carries gene mutation for certain diseases, including heart disease, colon cancer, breast cancer and Huntington’s disease © 2008 by Prentice Hall

Graphoanalysis (Handwriting Analysis) Many people view handwriting analysis in same context as psychic readings or astrology In Europe, many employers use graphoanalysis to help screen and place job applicants © 2008 by Prentice Hall

Polygraph Tests Confirm or refute application information Employee Polygraph Protection Act of 1988 severely limited use in private sector © 2008 by Prentice Hall

Internet Testing Increasing being used to test skills required by applicants © 2008 by Prentice Hall

Leaderless discussion groups Assessment Centers Selection technique used to identify and select employees for positions Requires them to perform activities similar to those in job In-basket exercises Management games Leaderless discussion groups Mock interviews © 2008 by Prentice Hall

Employment Interview Goal-oriented conversation where interviewer and applicant exchange information Continues to be primary method used to evaluate applicants At this point, candidates appear to be qualified © 2008 by Prentice Hall

Interview Planning Compare applicant’s application and résumé with job requirements Develop questions related to qualities sought Prepare step-by-step plan to present position, company, division, and department Determine how to ask for examples of past job-related applicant behaviors © 2008 by Prentice Hall

Content of the Interview Occupational experience Academic achievement Interpersonal skills Personal qualities Organizational fit © 2008 by Prentice Hall

Organizational Fit Management’s perception of degree to which prospective employee will fit in with firm’s culture or value system Employees also should consider organizational fit when debating whether or not to accept a job offer © 2008 by Prentice Hall

Candidate’s Role and Expectations While interviewer provides information about company, it is important for applicants to do their homework © 2008 by Prentice Hall

Types of Interviews Unstructured (nondirective) Structured (directive or patterned) © 2008 by Prentice Hall

Unstructured (Nondirective) Interview Asks probing, open-ended questions Encourages applicant to do much of the talking Often time-consuming Potential legal woes © 2008 by Prentice Hall

Unstructured Interview Examples Tell me about yourself? What is your greatest strength? What is your greatest weakness? How will our company benefit by having you as an employee? © 2008 by Prentice Hall

Structured (Directive or Patterned) Interview Series of job-related questions asked of each applicant for particular job Increases reliability and accuracy by reducing subjectivity and inconsistency of unstructured interviews © 2008 by Prentice Hall

Structured (Directive or Patterned) Interview (Cont.) Situational questions Job knowledge questions Job-sample simulation questions Worker requirements questions © 2008 by Prentice Hall

Behavioral Interview Applicants asked to relate actual incidents from past relevant to target job Behavioral questions - Job relevant Example: Relate a scenario where you were responsible for motivating others Example: Describe situation where your expertise made a significant difference © 2008 by Prentice Hall

Methods of Interviewing One-on-one interview - Applicant meets one-on-one with interviewer Group interview - Several applicants interact in presence of one or more company representatives Board interview - Several firm representatives interview candidate at same time © 2008 by Prentice Hall

Methods of Interviewing (Cont.) Multiple Interviews - Applicants are interviewed by peers, subordinates, and supervisors Stress interview - Anxiety is intentionally created © 2008 by Prentice Hall

Realistic Job Previews Conveys both positive and negative job information to applicant in unbiased manner Conveys information about tasks person would perform and behavior required to fit into culture of organization © 2008 by Prentice Hall

Potential Interviewing Problems: Inappropriate Questions Most basic interviewing rule is this: Ask only job-related questions Interview is a test subject to the same validity requirements as any other step in the selection process Historically, the interview has been more vulnerable to charges of discrimination than any other tool used in the selection process © 2008 by Prentice Hall

Potential Interviewing Problems: Premature Judgments Interviewers often make judgments about candidates in the first few minutes of the interview Some interviewers believe their ability to “read” a candidate is superior When this occurs, a great deal of potentially valuable information is not considered © 2008 by Prentice Hall

Potential Interviewing Problems: Interviewer Domination Relevant information must flow both ways Interviewers must learn to be good listeners as well as suppliers of information © 2008 by Prentice Hall

Potential Interviewing Problems: Permitting Non-Job Related Information If a candidate begins volunteering personal information that is not job related, the interviewer should steer the conversation back on course Whereas engaging in friendly chitchat with candidates might be pleasant, in our litigious society, it may be the most dangerous thing an interviewer can do © 2008 by Prentice Hall

Potential Interviewing Problems: Contrast Effects An error in judgment may occur when an interviewer meets with several poorly qualified applicants and then confronts a mediocre candidate Last applicant may appear to be better qualified than he or she actually is Opposite can also occur © 2008 by Prentice Hall

Potential Interviewing Problems: Lack of Training Interview is much more than carrying on a conversation with another person Expense of training employees in interviewing skills can be easily justified What does “Tell me about yourself” mean to a trained interviewer © 2008 by Prentice Hall

Potential Interviewing Problems: Nonverbal Communication Body language is the nonverbal communication method in which physical actions such as motions, gestures, and facial expressions convey thoughts and emotions Interviewers should make a conscious effort to view themselves as applicants do to avoid sending inappropriate or unintended nonverbal signals © 2008 by Prentice Hall

Concluding the Interview When the interviewer has obtained the necessary information and answered the applicant’s questions, he or she should conclude the interview Management must then determine whether the candidate is suitable for the open position and organization Tell the applicant that he or she will be notified of the selection decision shortly © 2008 by Prentice Hall

Pre-Employment Screening: Background Investigations Determine accuracy of information submitted or to determine if vital information was not submitted Principal reason for conducting background investigations is to hire better workers © 2008 by Prentice Hall

Elements to Verify Previous employment Education verification Personal reference check Criminal history Driving record Civil litigation Workers’ compensation history Credit history Social security number © 2008 by Prentice Hall

Fair Credit Reporting Act Act amended in 1997 Places new obligations on employers who use certain information brought to light through background investigations © 2008 by Prentice Hall

Trends & Innovations: Liars Index Quite a few executive job seekers claim advanced degrees from educational institutions they never attended Liars Index was 10.73% Expecting employers will not check facts © 2008 by Prentice Hall

Pre-Employment Screening: Reference Checks Information from individuals who know the applicant that provide additional insight into the information furnished by the applicant and verification of its accuracy Possible flaw - Virtually everyone can name three or four individuals willing to make favorable statements © 2008 by Prentice Hall

Pre-Employment Screening: Reference Checks (Cont.) Laws in 37 states and jurisdictions shield employers from liability for harm to an ex-employee based on contents of job reference There is a wait-and-see attitude among some employers © 2008 by Prentice Hall

Pre-Employment Screening: Reference Checks (Cont.) Two schools of thought with regard to supplying information about former employees Don’t tell them anything Honesty is the best policy © 2008 by Prentice Hall

Negligent Hiring Negligent Hiring - Liability a company incurs when it fails to conduct a reasonable investigation of an applicant’s background, and then assigns a potentially dangerous person to a position where he or she can inflict harm At Risk Employers - Risk of harm to third parties. Example: Taxi driver © 2008 by Prentice Hall

Negligent Referral Liability former employers may incur when they fail to offer a warning about a particularly severe problem with a past employee © 2008 by Prentice Hall

Selection Decision Most critical step of all Person whose qualifications most closely conform to requirements of open position and organization should be selected © 2008 by Prentice Hall

Medical Examination Americans with Disabilities Act (ADA) does not prohibit pre-employment medical examinations. Determines point they may be administered during selection process Directly relevant to job requirements Determines whether applicant physically capable of performing the work © 2008 by Prentice Hall

Notification to Candidates Results should be made know to candidates as soon as possible Delay may result in firm losing prime candidate Unsuccessful candidates should also be promptly notified © 2008 by Prentice Hall

Metrics for Evaluating Recruitment/Selection Effectiveness Recruiting Costs - Cost per hire may be determined by dividing recruiting expenses by number of recruits hired Selection Rate - Number of applicants hired from group of candidates expressed as percentage Acceptance Rate - Percent of those who accepted job from number who were offered the job © 2008 by Prentice Hall

Metrics for Evaluating Recruitment/Selection Effectiveness (Cont.) Yield Rate - Percentage of applicants from particular source and method that make it to next stage of selection process Cost/Benefit of Recruitment Sources and Methods - For each method, there is a cost. For each method, there should be a benefit Time Required to Hire - Time required to fill an opening is critical © 2008 by Prentice Hall

A Global Perspective: Selecting a Buddy Many companies are using formal buddy system when sending expatriates on assignments Often inform expatriates of host-office norms and politics, invite them into their homes, introduce them to friends and networks, and help bolster credibility in office © 2008 by Prentice Hall