Assessing internal vs external
candidates
Content
After studying this chapter, you should be able to:
•
Identify the goals of internal assessment and
external assessment
•
Discuss how internal assessment can enhance
a firm’s strategic capabilities.
•
Describe different internal/ external
assessment methods.
•
Discuss the importance of integrating
succession management and career
development.
•
Discuss how to evaluate external assessment
methods.
•
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What is Internal Assessment and its goals
10-3
Internal assessment :
•
Evaluates employees’ fit with other jobs
•
Assesses employees to enhance the firm’s strategic capabilities by aligning a
firm’s talent with its vision, goals, and business strategy
•
Informs downsizing decisions
Its goals are:
•
Maximise Fit
•
Accurate Assessment
•
Maximize return on investment
•
Positive shareholder reactions
•
Support talent philosophy and HR
strategy
•
Establish and reinforce employer
image
•
Identify employees’ development
needs
•
Assessing ethically
•
Legal compliance
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Internal Assessment Methods
10-4
•
Skills inventories
•
Mentoring programs
•
Performance reviews of task and interpersonal behaviors
•
Multi-source assessments
•
Job knowledge tests
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Multisource Assessment
10-5
Figure 10-1
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Nine Box Matrix: Model for internal assessment
10-6

Nine box matrix: a combined assessment of an employee’s
performance and potential.

Is a method for displaying judgments made about employees,
not for making those judgments.

Its value depends on the quality of the assessment methodology
that determines the box each individual is placed in.

It can help companies understand the overall strength of their
bench, but only if the employees were accurately evaluated in the
first place.
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Nine Box Matrix : Model for internal assessment
10-7
Table
10-2
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Career Crossroads Model : Model for internal assessment
10-8
•
Focuses on managerial and leadership positions rather than technical or
professional work.
•
The natural hierarchy of work that exists in most large, decentralized
business organizations consists of six career passages from the entry level to
the top job, with each passage representing increased complexity. The six
passages are:
Starting Point: Managing yourself
Passage 1: Managing others
Passage 2: Managing managers
Passage 3: Managing a function
Passage 4: Managing a business
Passage 5: Managing multiple businesses
Passage 6: Managing the enterprise
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Succession Management
10-9
Succession management: an ongoing process of systematically
identifying, assessing and developing organizational leadership
capabilities to enhance its performance
Succession management plans: written policies that guide the
succession management process
Replacement planning: identifying specific back-up candidates for
specific positions
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What Makes Succession Management Effective?
10-10
Understanding the nature of talent gaps with enough time before the
talent is needed can allow the organization to:
•
Plan for and remedy any workforce talent deficiencies
•
Develop an external recruiting strategy to bring in external talent
•
Redesign the work to reduce the need for the talent expected to be in short
supply
•
Plan alternate career paths for surplus talent
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Effective Succession Management Systems
10-11
The succession management process needs to make sense to and be usable by
different business units.
A standardized process can help to focus and guide the development of
employees to meet the strategic needs of the organization, and increase
employee perceptions of the program’s fairness by reducing opportunities for
favoritism.
The process should also align with other human resource processes including
recruitment, selection, rewards, training, and performance management.
Continually evaluate and improve the system.
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Career Planning
10-12
Career planning: a continuous process of self-assessment and goal setting.
To be strategic, career planning needs to complement the expected future
talent needs of the organization.
When integrated with the organization’s succession management and labor
forecasting processes, career planning and succession management can help
give any organization a snapshot of available talent for meeting current and
future needs.
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Career Development Tools
10-13
Assessment centers simulate the position an employee is interested in pursuing.
Career
counseling
and
career
development
workshops
help
individuals
understand the jobs that best match their motivations and talents, and help them
develop the skills they need to successfully compete for these opportunities.
Training and continuing education
Mentoring
Sabbaticals
Job rotation and challenging and developmental job assignments can enhance
key competencies and build experience in important job tasks before the
individual assumes the position.
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Making a Career Development Plan
10-14
Assess yourself
Set goals
Develop an action plan
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Discussion on External Assessment & its Goals
•
Maximize fit
•
Accurate assessment
•
Maximize return on investment
•
Generate positive stakeholder reactions
•
Support talent philosophy and HR strategy
•
Establish and reinforce employer image
•
Identify new hires’ development needs
•
Assess ethically
•
Ensure legal compliance
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Complementary and Supplementary Fit
Complementary fit: when a person adds something that is missing
in the organization or work group by being different from the others
Supplementary fit: when a person has characteristics that are
similar to those that already exist in the organization
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Possible Assessment Outcomes
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Hiring Stages

When people first apply for a job, they are considered job applicants
and are evaluated against the minimum acceptable criteria for the
job, such as relevant education and skills.

Those applicants passing the initial screen are considered job
candidates and are assessed in more depth to evaluate their
characteristics and qualifications as defined by the job specification as
well as on dimensions relevant to person-organization and even
person-group and person-supervisor fit.
A series of evaluative assessments are often performed, with the
lowest performing candidates being screened out after each
phase.

The organization then makes its hiring decision from the group of
finalists that remains after all assessment methods have been
completed.
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Evaluating an Assessment Method’s Effectiveness

Validity—whether
the
assessment
method
predicts
relevant
components
of
job
performance

Return on investment—whether the assessment method generates a financial return that
exceeds the cost associated with using it

Applicant reactions—including the perceived job relatedness and fairness of the
assessment method; perceiving sufficient opportunity to perform, or believing that one had
an adequate opportunity to demonstrate one’s ability to do the job, influences perceptions
of the fairness of the selection process, particularly if the person is rejected for the job

Selection ratio—having a low selection ratio means hiring only a few applicants, which
allows an assessment method to have maximum impact in improving the performance of
the people hired

Usability—people in the organization must be willing and able to use the method
consistently and correctly

Adverse impact—an assessment method is more effective if it predicts job performance
and other important hiring outcomes without discriminating against members of a protected
class
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Assessment Plan
After creating a job requirements matrix, the next step is to identify the
best way of assessing each important job qualification.
The assessment plan describes:

Which assessment method(s) will be used to assess each of the
characteristics on which applicants will be evaluated

In what sequence the assessments will take place

What weight each assessment will receive in determining an overall
score
for
that
characteristic
based
on
the
importance
of
each
characteristic to job performance.
Characteristics that will be trained after hire are not assigned to any
assessment method, but any existing qualifications required to qualify for
the training program should be listed.
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Choosing Assessment Methods
The choice should be based on which methods best assess the applicant
characteristics or competencies identified as important during the job
analysis as well as the ability of the assessment method to meet other
important goals of the external assessment process.
Because different methods are good at assessing different things, and
differ in their cost, validity, applicant reactions, and adverse impact, it is
often necessary to use more than one assessment method.
Just because an assessment method results in adverse impact, if it does
a good job predicting job performance it may be worthwhile to
investigate the usefulness of various strategies to reduce its adverse
impact so that it can continue to be used.
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Thank You
Contact:
Email: gupta.pragya09@gmail.com