Recruitment, selection and placement Chapter 6 Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 1 Recruitment and selection Objectives Describe the various recruitment policies adopted by organisations to make job vacancies more attractive. List the various sources from which job applicants can be drawn, their relative advantages and disadvantages, and the methods for evaluating them. Explain the recruiter’s role in the recruitment process, the limits the recruiter faces, and the opportunities available. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-2 Recruitment and selection Objectives (continued) Establish the basic scientific properties of personnel selection methods, including reliability, validity, and generalisability. Discuss how the particular characteristics of a job, organisation, or applicant affect the utility of any test. List the common methods used in selecting human resources. Describe the degree to which each of the common methods used in selecting human resources meets the standards of reliability, validity, generalisability, utility and legality. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-3 Recruitment Any practice or activity carried on by the organisation with the primary purpose of identifying and attracting potential employees. Human resource policies Organisational decisions that affect the practices and systems which, in turn, influence employees’ behavior, attitudes and performance. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-4 Figure 6.1 Overview of the individual job choice organisational recruitment process Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-5 Vacancy characteristics Internal vs. external recruiting Lead-the-market pay strategies Image advertising Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-6 Recruitment sources Internal vs. external Direct applicants and referrals Advertisements Public employment agencies Private employment agencies Universities E-cruitment Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-7 Evaluating the quality of a recruitment source: Table 6.1 Hypothetical yield ratios for four recruitment sources Recruitment source University Resumés generated Interview offers accepted Yield ratio Applicants judged acceptable Yield ratio Accept employment offers Yield ratios Cumulative yield ratio Cost Cost per hire 200 175 87% 100 57% 90 90% 90/200 45% $30 000 $333 Employee referrals 50 45 90% 40 89% 35 88% 35/50 70% $15 000 $428 Newspaper advertisement 500 400 80% 50 12% 25 50% 25/500 5% $20 000 $800 Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar Executive search firms 20 20 100% 19 95% 15 79% 15/20 75% $90 000 $6000 6-8 Recruiter traits and behaviours Functional area Traits Realism Realistic job preview Enhancing recruiter impact Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-9 Selection The process by which a company decides who will or will not be allowed into the organisation. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-10 Selection method standards Reliability The consistency of a performance measure; the degree to which a performance measure is free from random error. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-11 Selection method standards Validity The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. Criterion-related validation predictive validation concurrent validation Content validation ne- N/2 content-validation ratio: CVR = N/2 Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-12 Selection method standards Generalisability The degree to which the validity of a selection method, established in one context, extends to other contexts. Utility The degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in real organisations. Legality Whether a selection method is legally compliant. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-13 Figure 6.6 Concurrent and predictive validation designs Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-14 Types of selection methods Interviews References and biographical data Physical ability tests Cognitive ability tests Personality inventories Work samples Honesty tests and drug tests Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-15 Types of selection methods Interviews Structured Standardised Focused Situational interview items experience-based future-oriented Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-16 Evaluating selection methods Selection methods can be evaluated according to the five standards: reliability, validity, generalisability, utility and legality. See Table 6.8 for more detail. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-17 Summary Recruiting creates an applicant pool from which the organisation can draw for new recruits. Selection methods should conform to five critical standards: reliability, validity, generalisability, utility and legality. Copyright 2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Human Resource Management in Australia: Strategy-People-Performance by De Cieri & Kramar 6-18