Matching Individual and Organization Organization’s Decision to retain,fire or promote Job Performance Competencies Job requirements Traditional Recruitment Individual Organization Tenure in organization Realistic Recruitment Needs Culture Job Satisfaction Individual’s Decision to Stay or Quit Realistic Recruitment & Exchange Theory What I expect from company What Company expects from me + ? Three Stage Model of Individual Job Choice Process from Individual Perspective Labor Market Vacancies job openings Stage 1 Stage2 Stage 3 Noncompensatory Decision Process Compensatory Decision Process Implicit Favorite threshold characteristic must be met to continue IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 weigh + or of various characteristics Factors that Influence Job Choice JOB CHOICE Vacancy Characteristics Personnel Policies Applicant Characteristics Recruiter Characteristics IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Recruitment Sources Role of Human Resource Recruitment: The Organizational Perspective designed to affect : • Number of applicants • Type of applicant • Those likely to accept position if offered IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Personnel Policies can affect the nature of Job Vacancy characteristics Specific features include : • Internal vs. External recruiting – opportunity for advancement • Market Leader Pay strategy • Employment-at-Will policy • Image Advertising IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Recruitment Sources • Internal sources – faster, cheaper, more certainty • External sources – new ideas & approaches • Direct applicants & referrals – self-selection, low cost • Newspaper advertising • Public employment agencies – blue-collar jobs • Private employment agencies – white-collar jobs • Colleges & Universities • Electronic recruiting - the Internet IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Selection Method Standards for Evaluation Purposes • • • • • Reliability Validity Generalizability Utility Legality IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Reliabilty The degree to which a measure is consistent over time. Reliabilty = .95 Measure IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Reliabilty = .7 Measure Validity The extent to which performance on a measure is related to job performance. • Criterion-related – predictive – concurrent • Content IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Criterion - Related Validity Determines a relationship between selection test scores and job performance. Predictive Measure performance of those hired test applicants TIME IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Concurrent test existing employees Measure their performance TIME Validity Testing Predictive Minimum Level PERFORMANCE . . . . . . .. . TEST SCORE Validity Testing Predictive Minimum Level PERFORMANCE ERROR . . . . . . .. . SUCCESS FAILURE ERROR REJEC T TEST SCORE ACCEPT Generalizability • Degree to which one can extend validity to other contexts • Three contexts include – different situations • especially true for more complex jobs – different samples of people • more similar across race and gender than thought – different time periods IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Utility • Degree to which information from selection method enhances bottom line effectiveness. • Does the test increase the accuracy of the selction process? IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Low Utility ERROR SUCCESS 70% Minimum Level 15% 5% 10% FAILURE PERFORMANCE ERROR REJECT without test - 85% accuracy with test - 87% accuracy IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 TEST SCORE ACCEPT High Utility ERROR Minimum Level 20% 40% SUCCESS 30% 10% FAILURE PERFORMANCE ERROR REJECT without test - 50% accuracy with test - 75% accuracy IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 TEST SCORE ACCEPT Legality • Constitutional law used sparingly • Legislation (CRA, ADEA, ADA) – employers need to establish business necessity for any method showing adverse impact – prohibits preferential treatment for protected groups • Executive Orders ( 11246) – prohibits discrimination – mandates affirmative action to hire qualified minorities for government contracts IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 ADVERSE IMPACT CASES Case 1 Adverse Impact HIGH Business Necessity HIGH Job Relatedness HIGH 2 HIGH HIGH LOW 3 HIGH LOW HIGH 4 HIGH LOW LOW 5 LOW HIGH HIGH 6 LOW HIGH LOW 7 LOW LOW HIGH 8 LOW LOW LOW Adverse Impact Majority ERROR SUCCESS Minimum Level Protected FAILURE PERFORMANCE ERROR REJECT ACCEPT TEST SCORE IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 If Selection Ratio of majority = 60%, for Adverse Impact to occur the Selection Ratio of protected class must be less than (4/5 of 60%) or 48%. Evaluating Various Selection Methods Method Interview Reliability Low Generalzability Utility Low Low Validity Low References Low Low Bio-data High High Physical Ability High Mod - High Low Cognitive Ability High Moderate High Personality High Low Low Work-samples High High Drug High High Honesty Low Low Libel? Adverse Impact -sex,race Moderate Adverse Impact-sex Adverse High Impact-race Job specific High Low Low Job specific High High High Costly Insuf f icient Inf ormation IRWI N ©a Times Mirror Higher Education Group, Inc., company, 1997 Legality Low Privacy