Chapter 5 Selection Author Chapter Notes The chapter on selection is a continuation of the hiring process for new employees. We discussed recruiting in Chapter 4 and this chapter discusses how to create a process for selection, development of selection criteria and tools, and how to review resumes. In this chapter, we also discuss the interview process, types of interview questions, and interview bias. We discuss the testing process, and how to select the final candidate based upon all of the data gathered. The last section of the chapter discusses the components for making the offer to the candidate and how to negotiate the offer. You will find this chapter a bit different from other texts, in that we do not bog students down with too many details. All of the information presented can be used and applied right away in the students’ careers. Section 1 Learning Objective 1. Be able to name and discuss the steps in the selection process. Section Notes The selection process is important because so much time and money is spent recruiting. HR managers may not actually be the people selecting the right person for the job, but they should help managers define the process and guide the process for those managers. The cost of selection is very high, so it is important to hire the right person the first time around. The criteria will be created of course using the job analysis, but also the specific additional criteria for the job. The hiring team should decide expectations for candidates before reviewing any resumes. Key Takeaways The selection process refers to the steps involved in choosing someone who has the right qualifications to fill a current or future job opening. There are five main steps in the selection process. First, criteria are developed to determine how the person will be chosen. Second is a review of the applications and résumés, often done via a computer program that can find keywords. Next is interviewing the employee. The last steps involve testing, © Laura Portolese Dias 2011, published by Flat World Knowledge 1 such as a personality test or drug test, and then finally, making the offer to the right candidate. Exercise and Solution 1. What components are included in the selection process? Which one do you think is the most important? Answer: Criteria development, a review of the applications, interviewing, testing and then making the offer. Criteria development is likely the most important, because you need to know the exact type of candidate first before proceeding with the other steps. Extra Discussion Question 1. Using a search engine, research keyword resume software. What tips are provided to make sure your resume has the correct keywords? Discuss the benefits of this type of software to the HR professional. Answer: Using buzz words in the industry use action words and make sure the keywords are job specific, perhaps words from the actual job description. The main benefit to the HR professional is time-saving ability. Key Term Selection process The steps involved in choosing people who have the right qualifications to fill a current or future job opening. Section 2 Learning Objectives 1. Be able to explain why criteria development is an important part of the selection process. 2. Give examples of types of criteria that can be developed. 3. Describe the advantages and disadvantages of internal and external candidates. © Laura Portolese Dias 2011, published by Flat World Knowledge 2 Section Notes Before starting a hiring process, having a clear view of the person we want to hire is necessary. We should also develop interview questions before we begin reviewing resumes, so the questions are not biased toward one particular candidate. When creating criteria or tools, we should be concerned with both the validity and reliability of the tools we decide to use, such as interview questions. Other examples of tools include: Résumé-scanning software, Reference checks, Cognitive ability tests, Work samples, Credit reports, Biographical information blanks, Weighted application forms, Personality tests, and Interview questions. Not only is having the necessary skills important, but a fit with the company culture is also important. When we review resumes, we likely want to have a rating system in place to see how each fits with the criteria we have already developed. Advantages and Disadvantages to internal and external candidates include: o Internal Candidates Rewards contributions of current staff Can produce “inbreeding,” which may reduce diversity and difference perspectives Can be cost effective, as opposed to using a traditional recruitment strategy May cause political infighting between people to obtain the promotions Can improve morale Can create bad feelings if an internal candidate applies for a job and doesn’t get it Knowing the past performance of the candidate can assist in knowing if he/she meets the criteria o External Candidates Brings new talent into the company Implementation of recruitment strategy can be expensive Can help an organization obtain diversity goals Can cause morale problems for internal candidates New ideas and insight brought into the company Can take longer for training and orientation Key Takeaways The first step in selection is to begin reviewing résumés. Even before you do this, though, it is important to develop criteria that each candidate will be measured against. This can come from the job description as well as the job qualifications. Other tools, such as cognitive ability tests, credit checks, and personality tests, can be used to determine qualifications. When © Laura Portolese Dias 2011, published by Flat World Knowledge 3 developing your criteria for interviewing, determine the level the applicant needs to meet to meet the minimum criteria, for example, a minimum score on a personality test. We should be concerned with validity and reliability of measurement tools. Validity refers to how valid the test is, that is, how well a test measures a candidate’s abilities to do a job. Reliability refers to which selection techniques yield similar data or results over time. It is important to choose the right measurement tool used to determine whether the candidate meets the criteria. Setting criteria before the interview process starts ensures that disparate impact or disparate treatment does not occur in the interview process. When hiring, there is the option of internal and external candidates. Each has its own set of advantages and disadvantages. Internal candidates may be able to “hit the ground running,” but external candidates may come in with new perspectives. Even if an internal candidate seems to be the best hire, it is best to still perform the process of posting the job and interviewing, since other less vocal employees might be qualified internal candidates as well. In other words, don’t assume one person is the obvious choice for the promotion. Exercises and Solutions 1. Develop criteria for the position of a retail salesperson working in teams. Answer: Answers will vary depending on each team. Consider asking the students to present the criteria they developed. Examples of criteria might include: one year of experience, outgoing personality, ability to sell, willingness to help customers. 2. Describe the advantages and disadvantages of hiring an internal and external candidate. Give an example of when you don’t think an external candidate should be considered for a position. Answer: The advantages of internal candidates can be that it helps with morale; internal candidates may be able to get started faster while disadvantages may be that they carry “baggage” with them. Advantages of external candidates might include having fresh perspectives, making a more diverse workforce. If the organization has a good succession plan, most management positions are probably best filled by internal candidates that have already been selected to continue development within the organization. © Laura Portolese Dias 2011, published by Flat World Knowledge 4 3. How can development of criteria or minimum standards help in a case of disparate treatment accusations? Answer: By showing that criteria was developed before reviewing of resumes and interviewing started, it can show that a potential candidate did or did not, specifically, meet the criteria. It provides a guideline as to the specific needs of the job, and whether or not the skill was shown. Extra Discussion Question 1. What are some methods you might use to test validity of interview questions? Answer: You could develop a tracking system that shows the interview questions, the answers of the candidate who is eventually hired, then compare his or her success, perhaps through performance evaluations over time. Key Terms KSAOs Knowledge, skills, abilities, and other personal characteristics that make a person successful on the job. validity How useful a tool is to measure a person’s attributes for a specific job opening. reliability The degree in which selection techniques yield similar data over time. Biographical information blanks (BIBs) A series of questions about a person’s history that may have shaped his or her behavior weighted application form Involves selecting an employee characteristic to be measured and then identifying which questions on the application predict the desired behavior. Then scores are assigned to each predictor internal candidate Someone who already works within the organization. external candidate Someone who works outside the organization. © Laura Portolese Dias 2011, published by Flat World Knowledge 5 Section 3 Learning Objectives 1. Explain the various types of interviews and interview questions. 2. Discuss interview methods and potential mistakes in interviewing candidates. 3. Explain the interview process. Section Outline There are many types of interviews, the first is a traditional interview. This type of interview normally takes place in the office. It consists of the interviewer and the candidate, and a series of questions are asked and answered. A telephone interview is often used to narrow the list of people receiving a traditional interview. It can be used to determine salary requirements or other data that might automatically rule out giving someone a traditional interview. For example, if you receive two hundred résumés and narrow these down to twenty-five, it is still unrealistic to interview twenty-five people in person. At this point, you may decide to conduct phone interviews of those twenty-five, which could narrow the in-person interviews to a more manageable ten or so people. A panel interview occurs when several people are interviewing one candidate at the same time. While this type of interview can be nerve racking for the candidate, it can also be a more effective use of time. Consider some companies who require three to four people to interview candidates for a job. It would be unrealistic to ask the candidate to come in for three or four interviews, so it makes sense for them to be interviewed by everyone at once. Informational interviews are usually used when there is no specific job opening, but the candidate is exploring possibilities in a given career field. The advantage to conducting these types of interviews is the ability to find great people ahead of a job opening. Many organizations offer to take the candidate to lunch or dinner for the interview. This can allow for a more casual meeting where, as the interviewer, you might be able to gather more information about the person, such as their manners and treatment of wait staff. This type of interview might be considered an unstructured interview, since it would tend to be more of a conversation as opposed to a session consisting of specific questions and answers. In a group interview, two or more candidates interview at the same time. This type of interview can be an excellent source of information if you need to know how they may relate to other people in their job. Video interviews are the same as traditional interviews, except that video technology is used. This can be cost saving if one or more of your candidates are from out of town. Skype, for example, allows free video calls. An interview may not feel the same as a traditional interview, but the same information can be gathered about the candidate. © Laura Portolese Dias 2011, published by Flat World Knowledge 6 In a nondirective interview, the candidate essentially leads the discussion. Some very general questions that are planned ahead of time may be asked, but the candidate spends more time talking than the interviewer. The questions may be more open ended; for example, instead of asking, “Do you like working with customers?” you may ask, “What did you like best about your last job?” The advantage of this type of interview is that it can give candidates a good chance to show their abilities; however, the downside is that it may be hard to compare potential candidates, since questions are not set in advance. It relies on more of a “gut feeling” approach. Situational interview is an interview where a candidate is given a sample situation and asked how they would handle it. Examples: o If you saw someone stealing from the company, what would you do? o One of your employees is performing poorly, but you know he has some personal home issues he is dealing with. How would you handle complaints from his colleagues about lack of performance? o A coworker has told you she called in sick three days last week because she actually decided to take a vacation. What would you do? o You are rolling out a new sales plan on Tuesday, which is really important to ensure success in your organization. When you present it, the team is lukewarm on the plan. What would you do? A behavior description interview asks the candidate what they did do in specific situations. Examples include: o Tell me about a time you had to make a hard decision. How did you handle this process? o Give an example of how you handled an angry customer. o Do you show leadership in your current or past job? What would be an example of a situation in which you did this? Interview questions to avoid include any relating to national origin, age, marital status, religion, disabilities, criminal record and personal questions. There are several types of interview bias. A halo effect occurs when an interview becomes biased because of one positive or negative trait. Contrast bias is a type of bias that occurs when comparing one candidate to another. Gut feeling bias occurs when a person relies on their intuition to make a hiring decision. Generalization bias can occur when the interview assumes how the person behaves in an interview is how they always behave. Cultural noise bias occurs when a candidate thinks he knows what the interviewer wants to hear and answers questions based on that assumption. Setting up the process and informing managers of the process is an important step to make sure everyone “is on the same page” about how the selection process will work. Key Takeaways Traditional, telephone, panel, informational, meal, group, and video are types of interviews. A combination of several of these may be used to determine the best candidate for the job. A structured interview format means the questions are determined ahead of time, and unstructured means the questions are based on the individual applicant. The advantage of a structured interview is that all © Laura Portolese Dias 2011, published by Flat World Knowledge 7 candidates are rated on the same criteria. Before interviewing occurs, criteria and questions for a structured interview should be developed. Interview questions can revolve around situational questions or behavioral questions. Situational questions focus on asking someone what they would do in a given situation, while behavioral questions ask candidates what they have done in certain situations. Interview questions about national origin, marital status, age, religion, and disabilities are illegal. To avoid any legal issues, it is important for interviewers to be trained on which questions cannot be asked. The halo effect, which assumes that one desirable trait means all traits are desirable, should also be avoided. The process involved in interviewing a person includes the following steps: recruit new candidates, establish criteria for which candidates will be rated, develop interview questions based on the analysis, set a timeline for interviewing and decision making, connect schedules with others involved in the interview process, set up interviews with candidates and set up any testing procedures, interview the candidates and perform any necessary testing, and once all results are back, meet with the hiring team to discuss each candidate and make a decision based on the established criteria, then finally, put together an offer for the candidate. Developing a rapport, being honest, and managing the interview process are tips to having a successful interview. Exercises and Solutions 1. With a partner, develop a list of five examples (not already given in the chapter) of situational and behavioral interview questions. Answer: Possible examples of situational questions might include: If you felt something a co-worker was doing is unethical, how would you handle it? If your employees complained of a co-workers constant tardiness, what would you do? Examples of behavioral might include: Give an example of a challenging situation that you handled well. Tell me how you have reached a goal you had. Explain a situation in which you didn’t agree with your supervisor and how you handled it. 2. Why is it important to determine criteria and interview questions before bringing someone in for an interview? Answer: It is important for fairness sake. If questions are developed ahead of time, there is less chance for bias to occur as a result of knowing the credentials of the candidate. © Laura Portolese Dias 2011, published by Flat World Knowledge 8 3. Visit Monster.com and find two examples of job postings that ask those with criminal records not to apply. Do you think, given the type of job, this is a reasonable criteria? Answer: Answers will vary greatly. The point you can make with this question is that in order for this to be a reasonable requirement, there must be a logical reason. For example, for daycare workers, it would be reasonable to ask, since it would not be appropriate to have a child abuse offender on staff. Extra Discussion Question 1. What do you see are the advantages to having an unstructured interview versus a structured interview? Answer: Advantages might include the ability to ask specific questions about the candidates background and/or education. Using a set of general questions for all candidates may not provide the best information for a specific or specialized skills set. A set of general questions also may not provide an overall picture of each candidates strengths. However, use of a structured interview makes for a more fair process, where everyone is asked the same questions for consistency’s sake. Key Terms unstructured interview A type of interview in which questions are changed to match the specific applicant. structured interview A type of interview with a set of standardized questions based on the job analysis, not on the individual candidate’s résumé. situational interview An interview style in which the candidate is given a sample situation and asked how he or she might deal with the situation. behavior description interview A type of interview in which the candidate is asked questions about what he or she actually did in a variety of given situations. halo effect or reverse halo effect This occurs when an interviewer becomes biased because of one positive or negative trait a candidate possesses. © Laura Portolese Dias 2011, published by Flat World Knowledge 9 interview bias When an interviewer makes assumptions about the candidate that may not be accurate. contrast bias A type of bias that occurs when comparing one candidate to others. gut feeling bias When an interviewer relies on an intuitive feeling about a candidate. generalization bias A type of interview bias that occurs when an interviewer assumes that how someone behaves in an interview is how they always behave. cultural noise bias A type of interview bias that occurs when a candidate thinks he or she knows what the interviewer wants to hear and answers the questions based on that assumption. nonverbal behavior bias When the nonverbal behavior of an interviewer results in bias. similar to me bias An interviewer having a preference for a candidate because he or she views that person as sharing similar attributes. recency bias Interview bias that occurs when the interviewer remembers candidates interviewed most recently more so than the other candidates. Section 4 Learning Objectives 1. Explain the types of tests that can be administered as part of the selection process. 2. Be able to discuss the types of selection models. Section Outline Types of employment tests must have reliability and validity, as discussed earlier. Examples of tests include: cognitive ability test, measures a candidate’s aptitudes or achievements. An aptitude test measures a person’s ability to learn new skills. An achievement test measures someone’s current knowledge. A job knowledge test measures the candidate’s level of understanding about a particular job. Work sample tests asks candidates to show examples of work they have already done. © Laura Portolese Dias 2011, published by Flat World Knowledge 10 When making the candidate selection, there are several models that can be used. Like interview questions, the model used should be developed ahead of reviewing any candidate resumes. A clinical selection approach means that the decision makers review the data and, based on what they learn from the candidate and the information available to them, decide who should be hired for a job. The statistical method approach is a selection method in which a selection model is developed that assigns scores and weights on various factors, such as personality, answers to interview questions, and test scores. The compensatory model is a statistical method of scoring applicants, this model permits a high score in an important area to make up for a lower score in another area. The multiple cutoff model is also a statistical method of scoring applicants that requires a candidate to have a minimum score level on all selection criteria. A multiple hurdle model is another statistical method of scoring applicants that allows only candidates with high (preset) scores to go to the next stages of the selection process. Key Takeaways Once the interview process is complete, some companies use other means of measuring candidates. For example, work samples are an excellent way of seeing how someone might perform at your company. An aptitude test or achievement test can be given. An aptitude test measures how well someone might be able to do something, while an achievement test measures what the candidate already knows. Tests that measure cognitive ability and personality are examples. Some organizations also perform drug tests and physical tests. A physical test might consist of being able to lift a certain amount of weight, if required for the job. Honesty tests are also given; these measure the honesty level of the candidate. However, these tests may not be reliable, since someone can guess the “right” answer. Facebook, Twitter, and other social networking websites are also used to gather information about a candidate. Calling references is another option. Every person interviewing the candidate should have a selection model; this method utilizes a statistical approach as opposed to a clinical approach. The selection table lists the criteria on the left and asks interviewers to provide a rating for each. This method can allow for a more consistent way of measuring candidates. Exercises and Solutions 1. Develop a sample candidate selection for your current job. © Laura Portolese Dias 2011, published by Flat World Knowledge 11 Answer: Of course answers will vary greatly. If a student doesn’t have a job currently, ask them to instead write one for their dream job after graduation. The candidate selection should include interview questions and selection criteria as outlined in this chapter. 2. Visit your or another person’s Facebook page. Consider the content from an interviewer’s point of view. Should anything be removed or changed? Answer: Ask students to share information they came up with in class (of course, while not embarrassing anyone!). This question can create some good class discussion as to what is appropriate to post and inappropriate to post. Some students may feel it is an invasion of privacy, but you can make the point that anything on the web we post can be seen by anyone, so we must be careful about what we post. Extra Discussion Question 1. What are the advantages and disadvantages of using a statistical selection model approach versus a clinical one? Answer: Since a statistical model is one that is predetermined, it can be a more fair process to all candidates. A clinical approach allows for gut feeling bias, which can lead to not only unfairness, but potential lawsuits. A statistical approach can take more time up front. Due to the cost of hiring a candidate, the cost may be well worth it to make sure the right person is hired. Key Terms cognitive ability test Measures a candidate’s aptitudes or achievements. aptitude test Measures a person’s ability to learn new skills. achievement test Measures someone’s current knowledge. job knowledge test Measures the candidate’s level of understanding about a particular job. Work sample tests An employment test that asks candidates to show examples of work they have already done clinical selection approach © Laura Portolese Dias 2011, published by Flat World Knowledge 12 The decision makers review the data and, based on what they learn from the candidate and the information available to them, decide who should be hired for a job. statistical method A selection method in which a selection model is developed that assigns scores and weights on various factors, such as personality, answers to interview questions, and test scores. compensatory model A statistical method of scoring applicants, this model permits a high score in an important area to make up for a lower score in another area. multiple cutoff model A statistical method of scoring applicants that requires a candidate to have a minimum score level on all selection criteria. multiple hurdle model A statistical method of scoring applicants that allows only candidates with high (preset) scores to go to the next stages of the selection process. Section 5 Learning Objectives 1. Explain the steps in making the offer to the candidate. Section Outline Once the right candidate is chosen, it is time to make the offer. Upfront, salary expectations should have been discussed upfront, so only minor negotiation should need to take place. When making the offer and determining the details of the offer, a few aspects should be considered: o What is the scarcity of the particular skills set? o Your geographic area and “going” wages in the area o What are the current economic conditions? o What is the current pay for similar positions in your organization? o What is your organizational compensation strategy? o What is the fair market value of the job? o What is the level of the job within the organization? o What are your budget constraints? o How soon will the employee be productive in the organization? o Are there other candidates equally qualified that might have lower salary expectations? o What are the national and regional unemployment rates? o If you cannot pay more, can you offer other perks such as a signing bonus or flexible work schedule? © Laura Portolese Dias 2011, published by Flat World Knowledge 13 Point out that the offer should be agreed upon verbally before an offer letter (email) is sent to the candidate. In other words, negotiate first. Key Takeaways The HR professional’s job isn’t finished once the selection is made. The next step is to actually make the offer. This step is important, because if it isn’t done properly, you could lose the candidate or have ill feelings at the onset of the employment relationship. Once you have made the decision to hire someone, make the offer to the candidate right away. Normally this is done through a phone call and a follow-up e-mail, outlining the details of the offer. It is not unusual for someone to negotiate salary or benefits. Know how far you can negotiate and also be aware of how your current employees will be affected if you offer this person a higher salary. If you are having trouble coming to an agreement, be creative in what you can offer; for example, offer flextime instead of higher pay. Exercise and Solution 1. Research “salary negotiation” on the Internet. What tips are provided for job seekers? Do you think these same tips could apply to the HR professional? Why or why not? Answer: Hundreds of websites show up when typing in salary negotiation into a search engine. Some examples of negotiation tips include emphasizing agreement and not conflict or disagreement. Knowing the going rate for a particular job is important as well. Consider the experience level of the candidate (or self) and how this compares in the marketplace. Other advice also includes flexibility. Extra Discussion Question 1. Brainstorm a list, in small groups of possible options that can be offered to a candidate who is requesting a higher salary than you can offer. Answer: Some possible examples may include: bonuses, flexitime, alternative work schedule, profit sharing, more paid time off. Key Terms There are no key terms in this section. © Laura Portolese Dias 2011, published by Flat World Knowledge 14 Chapter Case The Author discusses the case for Chapter 5: http://blip.tv/play/sDyCpvdkAA%2Em4v Additional Case Study Exercise Your organization has made the decision to hire an assistant manager for your store. Previously, you had a store manager and seven retail salespeople, but as the store has grown from 2,000 to 10,000 feet, the need for this position arose. The responsibilities for this person will include opening the store, closing the store, counting the till at the end of the night, providing customer service and managing any customer service problems that may arise. Management of staff, including overseeing and contributing to the accomplishment of to-do lists created by the store manager will also be required. Based on this new job, you know that you must organize the hiring process for this new position. You have already recruited for the position and have 35 resumes on file for the position. You call a meeting to discuss next steps in hiring of the new candidate. Prepare a presentation to present that the meeting. The presentation should include: 1. Proposed criteria for the ideal candidate, along with related scoring as outlined in questions 3. 2. Interview questions 3. Proposed statistical selection model and reasoning for using this model as opposed to the other options. Answer: Possible selection criteria could include any combination of skills related to retail sales. It could include a proposed education level and years of experience. Interview questions should be specific and related directly to the job, making sure there are no illegal questions in the student’s responses. If a clinical selection approach is recommended, remind students this leaves room for error, so it is best to use a statistical approach. Possible statistical approaches include compensatory models, multiple cut-off models and multiple hurdle models. The multiple hurdle model may not be appropriate for position such as this. Useful Outside Resources The Human Resource Certification Institute: http://www.hrci.org/ Society for Human Resource Management: http://www.shrm.org/Pages/default.aspx YouTube videos: Interview do’s and don’ts http://www.youtube.com/watch?v=S1ucmfPOBV8 © Laura Portolese Dias 2011, published by Flat World Knowledge 15 Funny job interview http://www.youtube.com/watch?v=5KV2rxpQ_Js Good questions to ask while interviewing http://www.youtube.com/watch?v=OQByQrECXNA&feature=related Negotiating salary http://www.youtube.com/watch?v=Z3oMuiMu5lM Ramifications of Facebook Status updates on one person’s job http://www.youtube.com/watch?v=bP4clzrDgy0&feature=related Facebook job interview http://www.youtube.com/watch?v=j47aYH0DtP4&feature=related © Laura Portolese Dias 2011, published by Flat World Knowledge 16