STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW

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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
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•
•
•
•
•
•
Other HR functions
Legal considerations
Decision making speed
Organizational hierarchy
Applicant pool
Type of organization
Probationary period
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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
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6-7
Speed of Decision Making
Time available to
make selection
decision can have
major effect on
selection process
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6-8
Organizational Hierarchy
Different
approaches to
selection are
generally taken for
filling positions at
different levels in
organization
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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
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6-10
Applicant Pool
• Number of qualified applicants
recruited for a particular job
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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
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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
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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
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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
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6-15
Preliminary Interview
• Removes obviously unqualified
individuals
• Positive benefits - Applicant
may be qualified for another
position with the firm
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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
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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
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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
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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
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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
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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
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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
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6-26
Potential Problems Using
Selection Tests
• Can do v. Will do
• Legal liabilities
• Test anxiety
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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
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Cognitive aptitude
Psychomotor abilities
Job Knowledge
Work-sample (simulation)
Vocational interests
Personality
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Cognitive Aptitude Tests
Measures
individual’s ability
to learn, as well as
to perform a job
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Psychomotor Abilities Tests
• Strength
• Coordination
• Dexterity
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Job Knowledge Tests
• Measure candidate's
knowledge of duties of
position for which he or she
is applying
• Are commercially available
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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
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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
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6-36
Personality Tests
• Traits
• Temperaments
• Dispositions
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6-37
Unique Forms of Testing
• Genetic
• Graphoanalysis
• Polygraph Tests
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6-38
Genetic Testing
Determines whether person
carries gene mutation for
certain diseases, including
heart disease, colon cancer,
breast cancer and Huntington’s
disease
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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
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6-41
Internet Testing
Increasing being
used to test skills
required by
applicants
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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
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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
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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
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6-47
Candidate’s Role and Expectations
While interviewer
provides information
about company, it is
important for applicants
to do their homework
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6-48
Types of Interviews
• Unstructured
(nondirective)
• Structured
(directive or
patterned)
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6-49
Unstructured (Nondirective) Interview
• Asks probing, openended questions
• Encourages applicant
to do much of the
talking
• Often time-consuming
• Potential legal woes
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6-50
Unstructured Interview Examples
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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
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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
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6-52
Structured (Directive or Patterned)
Interview (Cont.)
• Situational questions
• Job knowledge
questions
• Job-sample simulation
questions
• Worker requirements
questions
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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
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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
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Methods of Interviewing (Cont.)
• Multiple Interviews - Applicants
are interviewed by peers,
subordinates, and supervisors
• Stress interview - Anxiety is
intentionally created
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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
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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
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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
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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
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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
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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
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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
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Elements to Verify
• Previous employment
• Education verification
• Personal reference check
• Criminal history
• Driving record
• Civil litigation
• Workers’ compensation history
• Credit history
• Social security number
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Fair Credit Reporting Act
• Act amended in 1997
• Places new obligations on
employers who use certain
information brought to light through
background investigations
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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© 2008 by Prentice Hall
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