Human Resource Management 10th Edition Chapter 6 SELECTION © 2008 by Prentice Hall 6-1 HRM in Action: Substance Abuse Testing • 80% of larger corporations in U.S. require workplace drug testing • Drug users are more than twice as likely to leave work early or miss days, are twoand-a-half times more likely to be absent for eight days or more and are three times more likely to be late for work. • More than three-and-a-half times more likely to be involved in a workplace accident and five times more likely to file a workers’ compensation claim © 2008 by Prentice Hall 6-2 HRM in Action: Substance Abuse Testing (Cont.) • Most experts regard blood tests as the forensic benchmark against which to compare others • Hair sample analysis claim it can detect drug use from three days to 90 days after drug consumption • Oral fluid testing is especially well-suited to cases of reasonable suspicion and post accident testing © 2008 by Prentice Hall 6-3 Selection • Process of choosing from group of applicants the individual best suited for a particular position and the organization • Goal of selection process is to properly match people with jobs and organization • Top performers contribute from 5-22 times more value to companies than midlevel or low performers © 2008 by Prentice Hall 6-4 Environmental Factors Affecting the Selection Process • • • • • • • Other HR functions Legal considerations Decision making speed Organizational hierarchy Applicant pool Type of organization Probationary period © 2008 by Prentice Hall 6-5 Other HR Functions Selection process affects, and is affected by, virtually every other HR function. © 2008 by Prentice Hall 6-6 Legal Considerations • Human resource management is greatly influenced by legislation, executive orders, and court decisions • Guiding principle -Why am I asking this question? • If information is job related, usually asking for the information is appropriate © 2008 by Prentice Hall 6-7 Speed of Decision Making Time available to make selection decision can have major effect on selection process © 2008 by Prentice Hall 6-8 Organizational Hierarchy Different approaches to selection are generally taken for filling positions at different levels in organization © 2008 by Prentice Hall 6-9 Organizational Hierarchy (Cont.) • Extensive background checks and multiple interviews would most likely apply for the executive position • An applicant for a clerical position would probably take a word processing test and perhaps have a short employment interview © 2008 by Prentice Hall 6-10 Applicant Pool • Number of qualified applicants recruited for a particular job © 2008 by Prentice Hall 6-11 Selection Ratio • Number of people hired for a particular job compared to number of individuals in the applicant pool • Selection ratio of 0.10 indicates that there were 10 qualified applicants for an open position © 2008 by Prentice Hall 6-12 Type of Organization • Prospective employees in private sector screened with regard to how they can help achieve profit goals • Government civil service systems identify qualified applicants through competitive examinations • Individuals considered for positions in notfor-profit organizations must be qualified and dedicated to work © 2008 by Prentice Hall 6-13 Probationary Period • Period that permits evaluating employees ability based upon performance • May be a substitute for certain phases of the selection process • Job related © 2008 by Prentice Hall 6-14 The Selection Process External Environment Internal Environment Recruited Candidate Review of Applications and Résumés Selection Tests Employment Interviews Pre-Employment Screening: Background and Reference Checks Rejected Applicants Preliminary Interview Selection Decision Physical Examination New Employee © 2008 by Prentice Hall 6-15 Preliminary Interview • Removes obviously unqualified individuals • Positive benefits - Applicant may be qualified for another position with the firm © 2008 by Prentice Hall 6-16 Preliminary Interview - Telephone Interview • Narrow pool of applicants before having formal face-to-face interview • Cut down on wasted time and effort • Lacks advantages of face-to-face contact • Not possible to observe nonverbal cues © 2008 by Prentice Hall 6-17 Preliminary Interview - Videotaped Interview • Using structured interview format designed by hiring firm, interviewer can videotape candidate’s responses • Interviewer may not interact with the candidate • Does not replace personal interviews • Allows for broader search © 2008 by Prentice Hall 6-18 Review of Applications • Application form must reflect not only firm’s informational needs, but also EEO requirements. • Essential information is included and presented in standardized format • May vary from firm to firm, and even by job type within organization © 2008 by Prentice Hall 6-19 Preprinted Statements on Application Form • Certifies that information provided on form is accurate and true • Should state position is employment at will • Gives permission to have background and references checked © 2008 by Prentice Hall 6-20 Review of Résumés • Résumé - Goal-directed summary of experience, education, and training developed for use in selection process • Professional/managerial applicants often begin selection process by submitting résumé • Includes career objective for specific position • All important concept of relevancy © 2008 by Prentice Hall 6-21 Sending Résumés via the Internet • Most large companies now use automated tracking systems • Résumés deviating from assumed style are ignored • Résumé should be as computer/scanner friendly as possible © 2008 by Prentice Hall 6-22 Keyword Résumé • Keywords - Words or phrases used to search databases • Keyword résumé - Adequate description of job-seeker’s characteristics and industry-specific experience presented in keyword terms to accommodate the computer search process © 2008 by Prentice Hall 6-23 Additional Recommendations • Avoid special characters. • Do not use tabs; use space bar. • Do not use word-wrap feature; use hard returns to insert line breaks. • Use default font and size. • Do not use boldface and italics. • Do not use blocks. • Do not use columns. • Do not place names or lines on sides of résumés © 2008 by Prentice Hall 6-24 Administration of Selection Tests • Advantages • Potential Problems using Selection Tests • Characteristics of Properly Designed Selection Tests © 2008 by Prentice Hall 6-25 Advantages of Selection Tests • Reliable and accurate means of selecting qualified candidates • Cost small in comparison • Identify attitudes and jobrelated skills that interviews cannot recognize © 2008 by Prentice Hall 6-26 Potential Problems Using Selection Tests • Can do v. Will do • Legal liabilities • Test anxiety © 2008 by Prentice Hall 6-27 Characteristics of Properly Designed Selection Tests • Standardization - Uniformity of procedures and conditions of administering test • Objectivity - Everyone scoring a test obtains same results • Norms - Frame of reference for comparing applicant's performance with that of others © 2008 by Prentice Hall 6-28 Characteristics of Properly Designed Selection Tests (Cont.) • Reliability - Provides consistent results • Validity - Measures what it is supposed to measure (Basic Requirement) • Requirement for Job Relatedness – Test must work without having adverse impact on minorities, females, and individuals with backgrounds or characteristics protected under law © 2008 by Prentice Hall 6-29 Types of Validation Studies • Criterion-related validity - Comparing scores on selection tests to some aspect of job performance • Content validity - Performs certain tasks actually required by job. • Construct validity - Measures certain traits or qualities important in performing job © 2008 by Prentice Hall 6-30 Types of Employment Tests • • • • • • Cognitive aptitude Psychomotor abilities Job Knowledge Work-sample (simulation) Vocational interests Personality © 2008 by Prentice Hall 6-31 Cognitive Aptitude Tests Measures individual’s ability to learn, as well as to perform a job © 2008 by Prentice Hall 6-32 Psychomotor Abilities Tests • Strength • Coordination • Dexterity © 2008 by Prentice Hall 6-33 Job Knowledge Tests • Measure candidate's knowledge of duties of position for which he or she is applying • Are commercially available © 2008 by Prentice Hall 6-34 Work-Sample • Tests requiring applicant to perform task or set of tasks representative of job • Such tests by their nature are job related • Produces highly validity, reduces adverse impact, and is more acceptable to applicants © 2008 by Prentice Hall 6-35 Vocational Interests • Indicates occupation in which person is most interested and most likely to receive satisfaction from • Primary used in counseling and vocational guidance © 2008 by Prentice Hall 6-36 Personality Tests • Traits • Temperaments • Dispositions © 2008 by Prentice Hall 6-37 Unique Forms of Testing • Genetic • Graphoanalysis • Polygraph Tests © 2008 by Prentice Hall 6-38 Genetic Testing Determines whether person carries gene mutation for certain diseases, including heart disease, colon cancer, breast cancer and Huntington’s disease © 2008 by Prentice Hall 6-39 Graphoanalysis (Handwriting Analysis) • Many people view handwriting analysis in same context as psychic readings or astrology • In Europe, many employers use graphoanalysis to help screen and place job applicants © 2008 by Prentice Hall 6-40 Polygraph Tests • Confirm or refute application information • Employee Polygraph Protection Act of 1988 severely limited use in private sector © 2008 by Prentice Hall 6-41 Internet Testing Increasing being used to test skills required by applicants © 2008 by Prentice Hall 6-42 Assessment Centers Selection technique used to identify and select employees for positions Requires them to perform activities similar to those in job • In-basket exercises • Management games • Leaderless discussion groups • Mock interviews © 2008 by Prentice Hall 6-43 Employment Interview • Goal-oriented conversation where interviewer and applicant exchange information • Continues to be primary method used to evaluate applicants • At this point, candidates appear to be qualified © 2008 by Prentice Hall 6-44 Interview Planning • Compare applicant’s application and résumé with job requirements • Develop questions related to qualities sought • Prepare step-by-step plan to present position, company, division, and department • Determine how to ask for examples of past job-related applicant behaviors © 2008 by Prentice Hall 6-45 Content of the Interview • Occupational experience • Academic achievement • Interpersonal skills • Personal qualities • Organizational fit © 2008 by Prentice Hall 6-46 Organizational Fit • Management’s perception of degree to which prospective employee will fit in with firm’s culture or value system • Employees also should consider organizational fit when debating whether or not to accept a job offer © 2008 by Prentice Hall 6-47 Candidate’s Role and Expectations While interviewer provides information about company, it is important for applicants to do their homework © 2008 by Prentice Hall 6-48 Types of Interviews • Unstructured (nondirective) • Structured (directive or patterned) © 2008 by Prentice Hall 6-49 Unstructured (Nondirective) Interview • Asks probing, openended questions • Encourages applicant to do much of the talking • Often time-consuming • Potential legal woes © 2008 by Prentice Hall 6-50 Unstructured Interview Examples • • • • Tell me about yourself? What is your greatest strength? What is your greatest weakness? How will our company benefit by having you as an employee? © 2008 by Prentice Hall 6-51 Structured (Directive or Patterned) Interview • Series of job-related questions asked of each applicant for particular job • Increases reliability and accuracy by reducing subjectivity and inconsistency of unstructured interviews © 2008 by Prentice Hall 6-52 Structured (Directive or Patterned) Interview (Cont.) • Situational questions • Job knowledge questions • Job-sample simulation questions • Worker requirements questions © 2008 by Prentice Hall 6-53 Behavioral Interview • Applicants asked to relate actual incidents from past relevant to target job • Behavioral questions - Job relevant • Example: Relate a scenario where you were responsible for motivating others • Example: Describe situation where your expertise made a significant difference © 2008 by Prentice Hall 6-54 Methods of Interviewing • One-on-one interview - Applicant meets one-on-one with interviewer • Group interview - Several applicants interact in presence of one or more company representatives • Board interview - Several firm representatives interview candidate at same time © 2008 by Prentice Hall 6-55 Methods of Interviewing (Cont.) • Multiple Interviews - Applicants are interviewed by peers, subordinates, and supervisors • Stress interview - Anxiety is intentionally created © 2008 by Prentice Hall 6-56 Realistic Job Previews • Conveys both positive and negative job information to applicant in unbiased manner • Conveys information about tasks person would perform and behavior required to fit into culture of organization © 2008 by Prentice Hall 6-57 Potential Interviewing Problems: Inappropriate Questions • Most basic interviewing rule is this: Ask only job-related questions • Interview is a test subject to the same validity requirements as any other step in the selection process • Historically, the interview has been more vulnerable to charges of discrimination than any other tool used in the selection process © 2008 by Prentice Hall 6-58 Potential Interviewing Problems: Premature Judgments • Interviewers often make judgments about candidates in the first few minutes of the interview • Some interviewers believe their ability to “read” a candidate is superior • When this occurs, a great deal of potentially valuable information is not considered © 2008 by Prentice Hall 6-59 Potential Interviewing Problems: Interviewer Domination • Relevant information must flow both ways • Interviewers must learn to be good listeners as well as suppliers of information © 2008 by Prentice Hall 6-60 Potential Interviewing Problems: Permitting Non-Job Related Information • If a candidate begins volunteering personal information that is not job related, the interviewer should steer the conversation back on course • Whereas engaging in friendly chitchat with candidates might be pleasant, in our litigious society, it may be the most dangerous thing an interviewer can do © 2008 by Prentice Hall 6-61 Potential Interviewing Problems: Contrast Effects • An error in judgment may occur when an interviewer meets with several poorly qualified applicants and then confronts a mediocre candidate • Last applicant may appear to be better qualified than he or she actually is • Opposite can also occur © 2008 by Prentice Hall 6-62 Potential Interviewing Problems: Lack of Training • Interview is much more than carrying on a conversation with another person • Expense of training employees in interviewing skills can be easily justified • What does “Tell me about yourself” mean to a trained interviewer © 2008 by Prentice Hall 6-63 Potential Interviewing Problems: Nonverbal Communication • Body language is the nonverbal communication method in which physical actions such as motions, gestures, and facial expressions convey thoughts and emotions • Interviewers should make a conscious effort to view themselves as applicants do to avoid sending inappropriate or unintended nonverbal signals © 2008 by Prentice Hall 6-64 Concluding the Interview • When the interviewer has obtained the necessary information and answered the applicant’s questions, he or she should conclude the interview • Management must then determine whether the candidate is suitable for the open position and organization • Tell the applicant that he or she will be notified of the selection decision shortly © 2008 by Prentice Hall 6-65 Pre-Employment Screening: Background Investigations • Determine accuracy of information submitted or to determine if vital information was not submitted • Principal reason for conducting background investigations is to hire better workers © 2008 by Prentice Hall 6-66 Elements to Verify • Previous employment • Education verification • Personal reference check • Criminal history • Driving record • Civil litigation • Workers’ compensation history • Credit history • Social security number © 2008 by Prentice Hall 6-67 Fair Credit Reporting Act • Act amended in 1997 • Places new obligations on employers who use certain information brought to light through background investigations © 2008 by Prentice Hall 6-68 Trends & Innovations: Liars Index • Quite a few executive job seekers claim advanced degrees from educational institutions they never attended • Liars Index was 10.73% • Expecting employers will not check facts © 2008 by Prentice Hall 6-69 Pre-Employment Screening: Reference Checks • Information from individuals who know the applicant that provide additional insight into the information furnished by the applicant and verification of its accuracy • Possible flaw - Virtually everyone can name three or four individuals willing to make favorable statements © 2008 by Prentice Hall 6-70 Pre-Employment Screening: Reference Checks (Cont.) • Laws in 37 states and jurisdictions shield employers from liability for harm to an exemployee based on contents of job reference • There is a wait-and-see attitude among some employers © 2008 by Prentice Hall 6-71 Pre-Employment Screening: Reference Checks (Cont.) • Two schools of thought with regard to supplying information about former employees • Don’t tell them anything • Honesty is the best policy © 2008 by Prentice Hall 6-72 Negligent Hiring • Negligent Hiring - Liability a company incurs when it fails to conduct a reasonable investigation of an applicant’s background, and then assigns a potentially dangerous person to a position where he or she can inflict harm • At Risk Employers - Risk of harm to third parties. Example: Taxi driver © 2008 by Prentice Hall 6-73 Negligent Referral Liability former employers may incur when they fail to offer a warning about a particularly severe problem with a past employee © 2008 by Prentice Hall 6-74 Selection Decision • Most critical step of all • Person whose qualifications most closely conform to requirements of open position and organization should be selected © 2008 by Prentice Hall 6-75 Medical Examination • Americans with Disabilities Act (ADA) does not prohibit pre-employment medical examinations. Determines point they may be administered during selection process • Directly relevant to job requirements • Determines whether applicant physically capable of performing the work © 2008 by Prentice Hall 6-76 Notification to Candidates • Results should be made know to candidates as soon as possible • Delay may result in firm losing prime candidate • Unsuccessful candidates should also be promptly notified © 2008 by Prentice Hall 6-77 Metrics for Evaluating Recruitment/Selection Effectiveness • Recruiting Costs - Cost per hire may be determined by dividing recruiting expenses by number of recruits hired • Selection Rate - Number of applicants hired from group of candidates expressed as percentage • Acceptance Rate - Percent of those who accepted job from number who were offered the job © 2008 by Prentice Hall 6-78 Metrics for Evaluating Recruitment/Selection Effectiveness (Cont.) • Yield Rate - Percentage of applicants from particular source and method that make it to next stage of selection process • Cost/Benefit of Recruitment Sources and Methods - For each method, there is a cost. For each method, there should be a benefit • Time Required to Hire - Time required to fill an opening is critical © 2008 by Prentice Hall 6-79 A Global Perspective: Selecting a Buddy • Many companies are using formal buddy system when sending expatriates on assignments • Often inform expatriates of host-office norms and politics, invite them into their homes, introduce them to friends and networks, and help bolster credibility in office © 2008 by Prentice Hall 6-80 © 2008 by Prentice Hall 6-81