1. Chapter 8: Selecting Employees to Fit the Job and the Organization Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition

2. © 2003 South-Western College Publishing. All rights reserved.8–28–2 Chapter Outline  The Strategic Importance of Selection  Overview of the Selection Process  Techniques for Assessing Job Applicants  The Perspective of Applicants  Legal Considerations in Selecting Applicants  Partnership in Selection

3. © 2003 South-Western College Publishing. All rights reserved.8–38–3 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 applicants’ CompetenciesCompetencies PreferencesPreferences InterestsInterests PersonalityPersonality Successful Selection: Employees are capable of high productivity and stay as long as they can contribute

4. © 2003 South-Western College Publishing. All rights reserved.8–48–4 Uses of Selection Decisions  Fill open jobs  Fill future openings  Promote  Transfer  Appoint to task force  Decide to mentor

5. © 2003 South-Western College Publishing. All rights reserved.8–58–5 Selection and Strategy Implementation  Executives: Critical to business success  Managers of Global Operations:  Expatriates (Parent-Country Nationals)  Host-Country Nationals (HCNs)  Third-Country Nationals (TCNs)  All employees need to perform well and be good corporate citizens.

6. © 2003 South-Western College Publishing. All rights reserved.8–68–6 Selecting Global Managers Parent-Country Nationals: Maintain organizational control and coordination Give promising managers international experience Host-Country Nationals: Language/cultural barriers eliminated Hiring costs reduced Improve continuity Careers for HCNs Third-Country Nationals: Salary and Benefit requirements may be lower May be better informed about host-country environment

7. © 2003 South-Western College Publishing. All rights reserved.8–78–7 The Economic Utility of Effective Selection Practices  Value  Potential value high for key positions  Accumulated effects of many selection decisions adds up  Minimize risk of harm and lawsuits by effective screening

8. © 2003 South-Western College Publishing. All rights reserved.8–88–8 The Economic Utility of Effective Selection Practices (cont’d)  Cost  Time and resources used to collect info about applicants  More expensive procedures justified when Tenure will be longTenure will be long Increases in performance have large impactIncreases in performance have large impact Many applicantsMany applicants

9. © 2003 South-Western College Publishing. All rights reserved.8–98–9 Consequences of Selection Decisions Reject a qualified candidate (incorrect decision) Reject a qualified candidate (incorrect decision) Accept a qualified candidate (correct decision Accept a qualified candidate (correct decision Reject an unqualified candidate (correct decision) Reject an unqualified candidate (correct decision) Accept an unqualified candidate (incorrect decision) Accept an unqualified candidate (incorrect decision) Employer’s Selection Decision HowEmployeePerforms Do not offer Offer the job Highperformance Lowperformance

10. © 2003 South-Western College Publishing. All rights reserved.8–10 Overview of the Selection Process Assess job tasks and organizational context Choose valid predictors to assess Design a selection process that allows Organization & applicant to make a decision Design a selection process that allows Organization & applicant to make a decision Synthesize information and make selection

11. © 2003 South-Western College Publishing. All rights reserved.8–11 The Selection Ratio  Number of applicants hired divided by the number of applicants in the initial pool.  Lower ratio = More opportunity to find outstanding candidates  Have lower ratios when:  Use effective recruitment  High unemployment

12. © 2003 South-Western College Publishing. All rights reserved.8–12 Selection Practices and Integrated HR Selection Practices What is assessed? How? Sequence of assessments Who assesses? How evaluate? Selection Practices What is assessed? How? Sequence of assessments Who assesses? How evaluate? Other HR Activities LegalLegal Job AnalysisJob Analysis RecruitmentRecruitment Global and Organizational Environment StructureStructure CultureCulture Criteria for Choosing Selection Methods Validity, reliability Legality, Practicality Methods Applications, interviews References, simulations Use of Selection Decisions Hiring Promotions Transfers Training Needs Layoffs

13. © 2003 South-Western College Publishing. All rights reserved.8–13 Assess the Job Tasks and Organizational Context  Accomplished using job analysis and competency modeling  Organizational context includes:  Company culture  Values  Business Strategy  Structure  Criteria  Outcomes affected by selection decisions

14. © 2003 South-Western College Publishing. All rights reserved.8–14 Choose Valid Predictors  Selection means making predictions about:  How people will perform  How long people will stay  Whether people will be good corporate citizens  Validity  Refers to the usefulness of information for predicting future job behavior

15. © 2003 South-Western College Publishing. All rights reserved.8–15 Content Validation  Competency modeling 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

16. © 2003 South-Western College Publishing. All rights reserved.8–16 Criterion–Related Validation  People are assessed on both predictor and job performance  Statistical correlational analysis is used to determine the relationship between predictor scores and criteria  Costly, and need large number of incumbents to use this approach

17. © 2003 South-Western College Publishing. All rights reserved.8–17 Validity Generalization  Assumes that results of criterion-related validity studies performed in other companies can be generalized to your company  Relatively new approach  Many selection techniques have been shown to be valid across variety of jobs  Predictors must be relevant to the job.

18. © 2003 South-Western College Publishing. All rights reserved.8–18 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

19. © 2003 South-Western College Publishing. All rights reserved.8–19 Choosing Reliable Measures  Reliability  Degree to which a measure yields dependable, consistent results  Reliable results don’t change with:  Different test administrators  Different interviewers  Different days or times  Different circumstances that are irrelevant to the decision

20. © 2003 South-Western College Publishing. All rights reserved.8–20 Typical Steps in the Selection Process Application or Resume InitialInterview Reference & BackgroundChecks Ability,Personality, Interest Tests WorkSimulations Follow-UpInterview Analysis and Decision Making -Reject-Hold-Offer Job Medical & Physical Tests Physical Tests ReasonableAccommodation Notification of Candidates Recording of Results for Legal/ResearchFollow-up Ensure Candidate Accepts Offer

21. © 2003 South-Western College Publishing. All rights reserved.8–21 Techniques for Assessing Applicants PersonalHistory Reference and Background Verification WrittenTests WorkSimulations AssessmentCenters Interviews Medical and Physical Tests Pre-certification

22. © 2003 South-Western College Publishing. All rights reserved.8–22 Personal History Assessments  Past behavior is a good predictor of future performance  Application Blanks:  Use for minimum requirements  Education and experience are important considerations for high-level jobs.  All application items should be relevant to job.

23. © 2003 South-Western College Publishing. All rights reserved.8–23 Personal History Assessments  Biodata Tests:  Ask about past and current activities  Responses of hundreds of respondents are correlated with performance, turnover, customer service, etc.  Tests are long and may appear unfair and not job- related

24. © 2003 South-Western College Publishing. All rights reserved.8–24 Reference Checks and Background Verification  Reference Verification  Verify that information on applications and resumes is accurate.  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.

25. © 2003 South-Western College Publishing. All rights reserved.8–25 Ability Tests  Measure potential of individual to perform  Types of abilities:  Cognitive Used by about 30% of employersUsed by about 30% of employers May result in adverse impactMay result in adverse impact  Psychomotor  Physical

26. © 2003 South-Western College Publishing. All rights reserved.8–26 Knowledge Tests  Assess what candidates know NOW!  Useful for jobs requiring specialized or technical knowledge

27. © 2003 South-Western College Publishing. All rights reserved.8–27 Personality Tests  Assesses the unique blend of personal characteristics that define an individual and determine her or his pattern of interactions with the environment.  Big Five personality dimensions:  Extraversion  Agreeableness  Conscientiousness  Emotional stability  Openness to experience

28. © 2003 South-Western College Publishing. All rights reserved.8–28 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.

29. © 2003 South-Western College Publishing. All rights reserved.8–29 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

30. © 2003 South-Western College Publishing. All rights reserved.8–30 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

31. © 2003 South-Western College Publishing. All rights reserved.8–31 InterviewsInterviews  Most widely used selection procedure  Structured and semi- structured interviews are more valid than unstructured  Structured interview ensures the same questions will be asked of all applicants.

32. © 2003 South-Western College Publishing. All rights reserved.8–32 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.

33. © 2003 South-Western College Publishing. All rights reserved.8–33 Guidelines for Effective Interviews  Give raters specific criteria and scoring key to evaluate responses  Use panel interviews for efficiency and reliability  Train interviewers  Minimize bias, first impressions  Ensure job-relatedness and consistency  Provide frame-of-reference training

34. © 2003 South-Western College Publishing. All rights reserved.8–34 The Americans with Disabilities Act and Medical Tests  General health exams can only be given after a job offer has been made; before a job offer, it is illegal to inquire about disabilities  Job analysis can support screening for physical, sensory, perceptual, and psychomotor abilities.  Employers are expected to make “reasonable accommodations” for qualified candidates.

35. © 2003 South-Western College Publishing. All rights reserved.8–35 Medical Tests  Genetic Screening  Identifies individual’s risks of future medical problems  Controversial: Restrictions at state levelRestrictions at state level Federal legislation likelyFederal legislation likely  Drug and Alcohol Testing  Permissible under ADA  Uses urine, blood or hair samples  6-8% of employees test positive

36. © 2003 South-Western College Publishing. All rights reserved.8–36 PrecertificationPrecertification  Employers form partnerships with schools and colleges  Employers provide accurate information on job opportunities.  Schools provide specific training with state and federal funds.

37. © 2003 South-Western College Publishing. All rights reserved.8–37 Applicants’ Perspective of Selection  Applicants judge fairness by:  Content of selection measures  Administration of the selection process  Outcomes of the selection process

38. © 2003 South-Western College Publishing. All rights reserved.8–38 Legal Considerations in Selecting Applicants  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

39. © 2003 South-Western College Publishing. All rights reserved.8–39 Federal Guidelines and Professional Standards  Uniform Guidelines on Employee Selection Procedures (1978)  Other EEOC guidelines:  National Origin (1980)  Age Discrimination (1981)  Religious Discrimination  Technical Assistance Manual on Employment Provisions (ADA)  Other Professional Standards:  American Psychological Association  Society for Industrial-Organizational Psychology

40. © 2003 South-Western College Publishing. All rights reserved.8–40 Legal Considerations: Typical Lawsuit  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.

41. © 2003 South-Western College Publishing. All rights reserved.8–41 Prima Facie Cases of Discrimination  Disparate Treatment  Individual belongs to protected group  Individual applied for job for which employer seeking applicants  Individual qualified but rejected  Employer kept looking for people with applicant’s qualifications

42. © 2003 South-Western College Publishing. All rights reserved.8–42 Prima Facie Cases of Discrimination  Adverse Impact:  Based on statistics from large number of hiring decisions  Focuses on consequences of selection practices, not employer’s intent  May be shown by audit of EEO-1 reports  Labor Market Comparisons:  Compare representation of group to the relevant labor market.

43. © 2003 South-Western College Publishing. All rights reserved.8–43 Prima Facie Cases of Discrimination  80 (Four-fifths) Percent Rule:  Compare representation of group in applicant pool to representation among those hired, fired, promoted, transferred or demoted.  Example of 80 Percent Rule  Selection of firefighters with physical ability test: 10% pass rate for women10% pass rate for women 30% pass rate for men30% pass rate for men 10/30 = 67%.10/30 = 67%. This is less than 80% so there is evidence of adverse impact.This is less than 80% so there is evidence of adverse impact.

44. © 2003 South-Western College Publishing. All rights reserved.8–44 Illegal Discrimination  Bases for defending discriminatory practices:  Job relatedness  Business necessity  Bona fide occupational qualifications  Bona fide seniority systems  Voluntary affirmative action programs

45. © 2003 South-Western College Publishing. All rights reserved.8–45 Legal Considerations for Global Selection  1991 Civil Rights Act confirms that 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 area.

46. © 2003 South-Western College Publishing. All rights reserved.8–46 Roles and Responsibilities for Selection Line Managers Identify staffing needsIdentify staffing needs Help HR define performance criteriaHelp HR define performance criteria Help HR develop selection toolsHelp HR develop selection tools Coordinate process with applicants and HRCoordinate process with applicants and HR Administer some selection testsAdminister some selection tests Comply with lawsComply with laws Provide accurate reference infoProvide accurate reference info Support ADASupport 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, promotionsApply for transfers, promotions Identify criteria for evaluating performanceIdentify criteria for evaluating performance Interview/select new group membersInterview/select new group members Attend training in selection processesAttend training in selection processes Self-select into jobs that are good fitSelf-select into jobs that are good fit Inform managers of disabilities requiring accommodationInform managers of disabilities requiring accommodation