Chapter 7: Recruiting, Selecting, Training, and Developing Employees The Meaning of Recruiting Recruitment and Selection - The process of recruitment and selection are the means whereby organizations acquire new human resources (Due to demand in labor workforce) - They work together and if carried out effectively, organizations will not only have the numbers but also the type of human resources it needs for strategy implementation. Recruiting - Process of developing a pool of qualified applicants who are interested in working for the organization - Select the best individuals (those who possess the appropriate KSA) - The process of locating, identifying, and attracting capables to an organization - Organizational Goals: 1. Optimization of qualified applicant pool 2. Generation of a pool of applicants who are both qualified and interested 3. Providing an honest and candid assessment of available jobs and opportunities - Prospective Employee (Applicant’s) Goal 1. Various potential employment opportunities ➢ Financial income ➢ Job security ➢ Promotion opportunities ➢ Benefits ➢ Challenging work assignments The Recruiting and Selection Process 1. Workforce planning and forecasting 2. Build a pool of candidates for these jobs by recruiting internal or external candidates 3. Have candidates complete application forms and undergo initial screening interviews 4. Use selection tools like tests, background investigations, physical examinations to screen candidates 5. Decide who to make an offer to by supervisors Workforce Planning - Process of deciding what positions the firms will have to fill, and how to fill them. - Identify and address the gaps between the employer’s workforce today and its projected workforce needs (Through forecasting and looking into employees trends within organization, retirees or employees leaving) - - Embrace all future positions from maintenance clerk to CEO ➢ Succession planning-executive jobs Employment plans are build on forecast Basic assumptions about the future 1. Trend analysis - examining past data to predict future demands 2. Ratio analysis ratio between a particular business variable and the number of employees a company needs 3. The scatter plot - graphical method used to help identify the relationship between two variables. Figure 7.1 Organizational and Individual Goals in Recruiting - Shows the psychological contract 1. Organizational Goals a. Attract a pool of qualified candidates b. Keep pool at manageable size c. Provide realistic job previews 2. Individual Goals a. Meet work-related goals b. Meet personal goals c. Address personal needs Internal and External Recruiting Internal Recruiting - Process of looking inside the organization for existing qualified employees who are eligible for promotion - Given large number of lay-offs and workforce reductions in recent years, potential applicants are somewhere between the classification of internal and external candidates - First to consider: a. Laid-off individuals without termination (under union contracts) Internal candidates b. Officially terminated are external candidates, but can be considered Methods of Internal Recruiting 1. Job posting - Promotion or lateral transfer (same effect in salary, just movement in position) 2. Supervisory recommendations - Not really recommended as some supervisors may have certain biases towards to their inner circle Internal Recruiting Advantages Increases Motivation Disadvantages May foster stagnation and stifle creativity Sustains knowledge and May cause a ripple culture effect (if you promote someone to a higher position, his position will be vacant so you need to hire someone again) Employees can see that Waste of time in there is really an posting openings and opportunity for getting inside advancement (source of applicants motivation May be more committed to the company Morale and engagement may rise Brings the advantage of familiarity with the company (heritage, culture, policies, procedures, strategies, ways Require less orientation and training External Recruiting - Process of looking to sources outside the organization for prospective employees Methods of External Recruiting 1. Drawing from the general pool - If you already have a list of possible candidates 2. Using referrals from existing employees - Use of employees; telling friends or recommendations 3. Using direct applicants or walk-ins - Those who have submitted resumes 4. Word of mouth - Same with referrals 5. Advertisements - Use of different techniques such as tv ads, newspaper 6. Employment Agencies - Public employment agencies - Private employment agencies - Agencies associated with non-profit orgs. 7. Executive search firms - Headhunter 8. College placements offices - Inexpensive method - Can specify qualifications ➢ Major ➢ Grade point average ➢ Work experience 9. Digital recruiting - More diverse group of applicants - Time saving 10. Internships - On-the-job trainings 11. Recruitment Process Outsourcers - Temporary workers and alternative staffing ➢ Temporary agencies 12. Offshoring and Outsourcing ● Note: The organization is liable if an organization engages in the services of discriminating agency. So that it is important that employment opportunity to all agencies offer equal External Recruiting Advantages Disadvantages Bringing new ideas, new perspectives, and new ways of doing things Motivational problems in the organization Avoids ripple effects More expensive than internal Current Trends in Recruitment 1. Recruiting a more diverse workforce ➢ Recruiting women ➢ Recruiting single parents ➢ Older workers ➢ Recruiting minorities ➢ The disabled 2. External Recruiting and Realistic Job Previews - Realistic Job Previews ➢ Technique for ensuring that job seekers understand the actual nature of jobs available to them The Meaning of Selection Selection - Concerned with identifying the best candidate or candidates for the job from among the pool of qualified applicants developed during the recruiting process - Once you have gathered applicants, it's time to identify who to select Steps in the Selection Process 1. The recruiting process 2. Gather information about pool of qualified applicants regarding the levels of requisite knowledge, skills, and abilities possessed by each applicant - What they should look into: a. Education, experience, and attitude towards work b. Impression of current managers about their likelihood of success 3. Evaluate applications of each applicant - Application of explicit and implicit standards assessing how closely the individual fits the desired profiles 4. Make decisions about employment offers Developing and Using Application Forms - First step in the process - Types of information provided by ➢ Make judgements on substantive matters such as a. Education and experience b. Applicant’s previous progress and growth c. Applicant’s stability based on previous work record - d. Predict which candidates will succeed on the job Problematical items: a. Education b. Arrest record c. Criminal record d. Marital status e. Membership in organization f. Housing g. Notification in case of emergency Basic Selection Criteria 1. Education and experience - Educational attainment 2. Personal characteristics - Big Five Personality Traits a. Neuroticism b. Extraversion c. Openness to experience d. Agreeableness e. Conscientiousness 3. Skills and abilities - Characteristics that an employee must possess 4. Hiring for fit - The firm might consider hiring a person not because of skills alone, but whose personal values or personalities align with the organization Popular Selection Techniques 1. Applications and background checks - Ask applicants to fill an employment application ➢ Weighted application blank (predicting person’s ability to perform a job effectively) ➢ Biodata application blank (more complex and detailed assessments about the background) 2. Employment tests - Measure characteristics of an individual ➢ Cognitive ability tests ➢ Psychomotor ability tests ➢ Personality tests ➢ integrity tests 3. Work simulations or work samples 4. Physical examinations 5. Personal interviews a. Structured employment interview b. Semi-structured employment interview c. Unstructured employment interview d. Situational interview 6. Other selection techniques References - Recommendations - Assessment centers Personal Interviews Error 1. First Impression Error - 2. 3. 4. 5. Project a professional image because you are selling yourself so you need to make a good impression; first impressions last; sometimes impressions are not what you really get later on Contrasts error - Evaluation of a target person in a group is affected by the level of performance of others in the group. Similarity error - Familiarity; if the interviewer and you came from the same school; bias Non-relevancy - External factors that may not be included in interview questions such as appearance, dress, etc. Interviewer’s knowledge of the job - Not familiar with the job The Selection Decision - Multiple Indicators By using multiple approaches, firms can counterbalance the measurement error in one selection technique against another 1. Banding Permits firms to select applicants from some underrepresented group in the organization while still ensuring high performance standards Selection Errors Firms make at least one occasional selection error and hire the wrong person 1. False Positives Applicants who are predicted to be successful and are hired but who ultimately fail 2. False Negatives - Applicants who are predicted to fail and are not hired but who would have been successful if hired How to address these errors? a. Using more rigorous tests b. Challenging interviews to selection decisions Two Types of Looking into the instruments in the selection process Reliability - Meaning: Consistency of a particular selection device - Test–retest reliability, alternate-forms reliability, and internal consistency reliability (SAT GMAT) - All items on the test are measuring the same thing Validity - Meaning: Scores on a test are related to performance on a job - Criterion-related validity ➢ extent to which a selection technique accurately predicts elements of performance ➢ Simulation or on the job performance - Legal and Effectiveness Issues in Recruiting and Selection Legal Issues 1. Organization faced with a prima facie case of discrimination must prove that the basis for selection decision was job related - Solution: Demonstrated by establishing the validity of a selection instrument 2. Evaluating recruiting and selection - Utility analysis: ➢ Determines the extent to which a selection system provides real benefit to the organization ➢ Calculating the costs involved in the selection errors Training Techniques - A planned attempt by an organization to facilitate employee learning of job-related knowledge ➢ Teaching operational or technical employees how to do their jobs more effectively and efficiently - Teaching managers and professionals the skills needed for both present and future jobs ➢ Better understanding of how to work more effectively ➢ How to better motivate employees ➢ How to make better decisions Training and Development Techniques 1. Work-based programs Apprenticeships: Combination of on-the-job training and classroom instruction - Vestibule training: Job is performed under a condition that closely simulates the real work environment 2. Instructional-based programs - Lectures or discussions - Computer-assisted instruction - Programmed instruction 3. Management development - Involves more generalized training for future managerial roles and positions 4. Organizational development (OD) - System-wide effort to increase the organization’s overall performance via planned interventions - Techniques used include a. survey b. feedback, c. third-party peacemaking, d. process consultation