Human Resource Management 11th Edition Chapter 6 SELECTION Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall HRM in Action: Putting the Interviewee Under Pressure: The Stress Interview Interviewer intentionally creates anxiety Interviewer deliberately makes candidate uncomfortable by asking blunt and often discourteous questions Purpose is to determine applicant’s tolerance for stress that may accompany the job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Selection Process of choosing from group of applicants the individual best suited for particular position and organization Goal of selection process is to properly match people with jobs and organization Selecting wrong person for any job can be costly Costs an average of 2.5 times individual’s salary to replace an employee who does not work out Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Environmental Factors Affecting the Selection Process Other HR functions Legal considerations Decision-making speed Organizational hierarchy Applicant pool Type of organization Probationary period Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Other HR Functions Selection process affects, and is affected by, virtually every other HR function. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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, asking for the information is usually appropriate Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Speed of Decision Making Time available to make selection decision can have major effect on selection process Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Organizational Hierarchy Different approaches to selection are generally taken for filling positions at different levels in organization Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Organizational Hierarchy (Cont.) Extensive background checks and multiple interviews would most likely apply for executive position An applicant for clerical position would probably take word processing test and perhaps have short employment interview Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Applicant Pool Number of qualified applicants recruited for a particular job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Selection Ratio Number of people hired for a particular job compared to number of individuals in applicant pool Selection ratio of 0.10 indicates that there were 10 qualified applicants for an open position Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 not-for-profit organizations must be qualified and dedicated to work Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Probationary Period Period that permits evaluating employee’s ability based upon performance May be a substitute for certain phases of the selection process Job related Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

The Selection Process External Environment Internal Environment Recruited Candidate Preliminary Interview Review of Applications and Résumés Selection Tests Rejected Applicants Employment Interviews Pre-Employment Screening: Background and Reference Checks Selection Decision Physical Examination New Employee Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Preliminary Interview Removes obviously unqualified individuals Positive benefits - Applicant may be qualified for another position with the firm Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Preliminary Interview - Telephone Interview Narrow pool of applicants before formal face-to-face interview Cut down on wasted time and effort Lacks advantages of face-to-face contact Ernst & Young stopped using telephone interview for graduate recruits because too many weak candidates were getting through to second interview Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Administration of Selection Tests Advantages Potential Problems using Selection Tests Characteristics of Properly Designed Selection Tests Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Advantages of Selection Tests Reliable and accurate means of selecting qualified candidates Cost small in comparison Identify attitudes and job-related skills that interviews cannot recognize Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Problems Using Selection Tests Can do versus Will do Legal liabilities Test anxiety Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Types of Employment Tests Cognitive aptitude Psychomotor abilities Job knowledge Work sample (simulation) Vocational interests Personality Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Cognitive Aptitude Tests Measures individual’s ability to learn, as well as to perform a job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Psychomotor Abilities Tests Strength Coordination Dexterity Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Job Knowledge Tests Measure candidate's knowledge of duties of position for which he or she is applying Are commercially available Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Work Sample Tests requiring applicant to perform task or set of tasks representative of job Such tests by their nature are job related Produces high validity, reduces adverse impact, and is more acceptable to applicants Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Vocational Interests Indicates occupation in which person is most interested and most likely to receive satisfaction from Primary used in counseling and vocational guidance Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Personality Tests Traits Temperaments Dispositions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Unique Forms of Testing Genetic Graphoanalysis Polygraph Tests Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Genetic Testing Determines whether person carries gene mutation for certain diseases, including heart disease, colon cancer, breast cancer, and Huntington’s disease Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Polygraph Tests Confirm or refute application information Employee Polygraph Protection Act of 1988 severely limited use in private sector Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Online Testing Increasingly being used to test skills required by applicants Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Content of the Interview Occupational experience Academic achievement Interpersonal skills Personal qualities Organizational fit Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Organizational Fit Management’s perception of degree to which prospective employee will fit firm’s culture or value system Employees also should consider organizational fit when debating whether or not to accept a job offer Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Candidate’s Role and Expectations While interviewer provides information about company, it is important for applicants to do their homework Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Types of Interviews Unstructured Structured Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Unstructured Interview Asks probing, open-ended questions Encourages applicant to do much of the talking Often time consuming Potential legal woes Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Structured 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Structured Interview (Cont.) Situational questions Job knowledge questions Job-sample simulation questions Worker requirements questions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Multiple Interviews - Applicants are interviewed by peers, subordinates, and supervisors Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Inappropriate Questions Most basic interviewing rule is: Ask only job-related questions Interview is a test subject to same validity requirements as any other step in selection process Historically, interview has been more vulnerable to charges of discrimination than any other tool used in selection process Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Premature Judgments Interviewers often make judgments about candidates in first few minutes of 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Interviewer Domination Relevant information must flow both ways Interviewers must learn to be good listeners as well as suppliers of information Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Potential Interviewing Problems: Permitting Non-Job Related Information If candidate begins volunteering personal information not job related, interviewer should steer conversation back on course While engaging in friendly chitchat with candidates might be pleasant, in our litigious society, it may be most dangerous thing interviewer can do Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Contrast Effects Error in judgment may occur when 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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Lack of Training Interview is much more than carrying on 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? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Potential Interviewing Problems: Nonverbal Communication Body language is a nonverbal communication method in which physical actions such as motions, gestures, and facial expressions convey thoughts and emotions Interviewers should make conscious effort to view themselves as applicants do to avoid sending inappropriate or unintended nonverbal signals Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Concluding the Interview When interviewer has obtained necessary information and answered applicant’s questions, he or she should conclude the interview Management must then determine whether candidate is suitable for the open position and organization Tell applicant that he or she will be notified of the selection decision shortly Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Elements to Verify Previous employment Education verification Personal reference check Criminal history Driving record Civil litigation Workers’ compensation history Credit history Social security number Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Fair Credit Reporting Act Act amended in 1997 Places new obligations on employers who use certain information brought to light through background investigations Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Pre-Employment Screening: Reference Checks Information from individuals who know applicant that provide additional insight into information furnished by applicant and verification of its accuracy Possible flaw - Virtually everyone can name three or four individuals willing to make favorable statements Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Pre-Employment Screening: Reference Checks (Cont.) Laws on the books in many states and jurisdictions shield employers from liability for harm to an ex-employee based on contents of job reference There is a wait-and-see attitude among some employers Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Continuous Background Checks Not just for pre-employment any more People and events are ever-changing It has been estimated that every year 1-2 out of every 1,000 existing employees acquire a new criminal record In certain industries such as transportation, health care, and financial services, keeping a convicted worker on board can be disastrous Only 5% of convictions lead to jail time Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Negligent Hiring Negligent Hiring - Liability a company incurs when it fails to conduct a reasonable investigation of applicant’s background, and then assigns potentially dangerous person to position where he or she can inflict harm At-Risk Employers - Risk of harm to third parties requires a higher standard of care Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Negligent Referral Liability former employers may incur when they fail to offer a warning about a particularly severe problem with a past employee Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall Selection Decision Most critical step of all Person whose qualifications most closely conform to requirements of open position and organization should be selected Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Trends & Innovations: Hiring Temporary Executives Organizations view hiring of new executive as two parts Begins search process for executive in traditional way Executive is hired to cover position during time company is looking for new CEO May become try-before-you-buy exercise Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 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 is physically capable of performing the work Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Notification to Candidates Results should be made known to candidates as soon as possible Delay may result in firm losing prime candidate Unsuccessful candidates should also be promptly notified Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Applicant Tracking System Software application designed to help enterprise select employees more efficiently Current systems permit human resource and line managers to oversee entire selection process Often involve screening résumés and spotting qualified candidates, conducting personality and skills tests, and handling background checks Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Metrics for Evaluating Recruitment/Selection Effectiveness Turnover Rate - Number of times on average employees have to be replaced during a year Recruiting Costs - Cost per hire 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 - Number of applicants who accepted the job divided by number who were offered the job Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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 a job opening is critical Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall A Global Perspective: Changing of the Guard: Will the New Expatriates Step Forward? New generation of expats is evolving for increasing markets of China and India Busy searching for local talent and adapting to very different culture When they return to U.S., opportunities abound for them, perhaps even the corner office Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

A Global Perspective (Cont.) Quite difficult and demanding to recruit in India Candidates may receive dozens of offers and accept them all - show up at the one that they like the most Increasingly the “right” candidate is a woman, under 40 Many expats like the India or China assignment so much that they do not want to return to headquarters Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall