Copyright © 2008 by Nelson, a division of Thomson Canada Limited. Part 2: Staffing the Organization Chapter 6: Selection of Human Resources Prepared by Linda Eligh, University of Western Ontario

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 2 Learning Objectives After you have read this chapter, you should be able to: 1.Describe the relationships between criteria, predictors, job performance and selection. 2.Diagram the sequence of a typical selection process. 3.Identify three types of selection tests and legal concerns about their uses. 4.Discuss several types of selection interviews and some key considerations in conducting these interviews. 5.Explain how legal concerns affect background investigations of applicants and use of medical examinations in the selection process. 6.Describe the major issues to be considered when selecting candidates for global assignments.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 3 Selection and Placement Selection  The process of choosing individuals with qualifications needed to fill jobs in an organization.  Organizations need qualified employees to succeed.  “Hire hard, manage easy.”  “Good training will not make up for bad selection.” Placement  Fitting a person to the right job.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 4 Typical Division of HR Responsibilities: Selection Fig. 6-1

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 5 HR Employment Functions Receiving applications Interviewing applicants Administering tests to applicants Conducting background investigations Arranging physical examinations Placing and assigning new employees Coordinating follow-up of new employees Exit interviews with departing employees Maintaining employee records and reports

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 6 PlacementPlacement Person-job Fit  Match between individual knowledge, skills and abilities (KSAs) and demands of the job or the needs/desires of an individual and what is provided by the job  Benefits of person-job fit  Higher employee performance  Lower turnover and absenteeism Person-organization Fit  The congruence between individuals and organizational factors

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 7 Criteria, Predictors, and Job Performance Selection Criterion  A characteristic that a person must have to do a job successfully. Predictors  The measurable or visible indicators of a selection criterion. Validity  The correlation between a predictor and job performance, or the extent to which a test actually measures what it says it measures. Reliability  The degree to which an instrument measures the same way each time it is used under the same conditions, with the same subjects.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 8 Job Performance, Selection Criteria, and Predictors Fig. 6-2 Job Performance, Selection Criteria, and Predictors Fig. 6-2

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 9 Validity and Equal Employment Employment “test”  Any employment procedure used as the basis for making an employment-related decision.  Must have both reliability and job-related validity. Selection Procedures and Validity  Employers must demonstrate that tests of knowledge, skills, and abilities (KSAs) are valid when disparate impact exists. Content Validity  Validity as measured by a logical, nonstatistical method (job analysis) to identify the KSAs and other characteristics necessary to perform the job.  Example: A work sample test measuring how well an applicant performed essential tasks of the job.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 10 Validity and Equal Employment (cont’d) Criterion-Related Validity  Validity measured by a procedure that uses a test as the predictor of how well an individual wool perform on the job. Correlation Coefficient  Index number giving the relationship between a predictor (a test) and a criterion variable (a measure of success on the job). Predictor (test score) Criterion (Job Success)

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 11 Test Scores and Job Performance Fig. 6-3 Note: Correlation looks at the relationships between the test scores and job performance of the whole group.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 12 Validation Strategies: Construct Validity Concurrent Validity  Measured when an employer tests current employees and correlates the scores with their performance ratings. Predictive Validity  Measured when test results of applicants are compared with subsequent job performance.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 13 Concurrent and Predictive Validity Fig. 6-4

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 14 Selection Process Flowchart Fig. 6-5

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 15 The Selection Process Legal Concerns in the Selection Process  Human Rights Legislation  Non-discriminatory job-related selection practices  Only exception is for BFORs  Applicant Job Interest  Job applicants perceptions of the organization will be influenced by how they are treated  Realistic Job Previews (RJPs)

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 16 Applicant Job Interest Realistic Job Preview  The process through which a job applicant receives an accurate picture of the organizational realities of the job.  Prevents the development of unrealistic job expectations that cause disenchantment, dissatisfaction, and turnover in new employees.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 17 Pre-Employment Screening Pre-Screening Interview  Purpose: verify minimum qualifications Electronic Screening  Use applicant tracking systems when:  The volume of applicants is large  The quality of hires needs to be increased  Hiring cycles need to be shortened  The cost of hiring needs to be reduced  The firm needs to reach geographic areas not visited by recruiters

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 18 Application Forms Purposes of Application Forms  Record of applicant’s interest in the job  Provides a profile of the applicant  Basic record for applicants who are hired  Research effectiveness of the selection process Resumes as Applications  Employers must avoid utilizing information that is personal and non-job related in nature which may appear on a resume. Biodata and Weighted Application Forms  Differentiates between satisfactory and poor performers.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 19 Application Disclaimers and Notices Privacy Act  Confirms to the applicant that privacy is protected. Reference Contacts  Obtains applicant’s permission to contact references. Employment Testing  Notifies applicants of required drug tests, physical exams, or other tests. Application Time Limits  Indicates how long the application will remain active (i.e. 6 mos). Information Falsification  Indicates that false information is grounds for termination. Legality of the Application Form  Notifies applicants the form has been approved by the HRC.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 20 Human Rights Considerations and Application Forms Application Forms should not contain illegal (non job-related) questions concerning:  Marital status  Height/weight  Number and ages of dependents  Information on spouse  Date of high school graduation  Contact in case of emergency

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 21 Selection Testing: Ability Tests Cognitive Ability Tests  Measure an individual’s thinking, memory, reasoning, and verbal and mathematical abilities. Physical Ability Tests  Measure an individual’s strength, endurance, and muscular movement. Psychomotor Tests  Measure an individual’s dexterity, hand-eye coordination, arm-hand steadiness, and other factors.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 22 Selection Testing: Ability Tests (cont’d) Work Sample Tests  Require an applicant to perform a simulated task. Situational Judgment Tests  Measure a person’s judgment in work settings. Assessment Centres  A series of evaluation exercises and tests used for the selection and development of managerial personnel.  Multiple raters assess participants in multiple exercises and problems that are job content-related to the jobs for which the individuals are being screened.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 23 Other Tests Personality Tests  Myers-Briggs Type Indicator (MBTI)  16 Personality Factors and others  “Fakability” and personality tests Honest and Integrity Testing  Standardized honesty/integrity tests  “Fakability” of honesty tests  Polygraph tests (“lie detector”)  Prohibited in Ontario and New Brunswick for purposes of pre-employment screening

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 24 Big Five Personality Characteristics Fig. 6-7

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 25 Controversial and Questionable Tests Graphology (Handwriting Analysis)  Analysis of the characteristics of an individual’s writing that purports to reveal personality traits and suitability for employment. Psychics  Persons who are supposedly able to determine a person’s intellectual and emotional suitability for employment.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 26 Legal Concerns and Selection Testing  Job-relatedness (validity) of selection tests  Compliance with human rights and language issues  Tests represent only one data source in the selection process

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 27 Types of Selection Interviews Fig. 6-8

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 28 Selection Interviewing Face Validity Interrater Reliability Intrarater Reliability Interview Reliability and Validity Issues

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 29 Selection Interviewing Reliability and Validity of Interviews  Intra-rater reliability: interviewers who are consistent in their ability to select individuals who will perform well.  Inter-rater reliability: the extent to which different interviewers agree in the selection of individuals who will perform well.  Face validity: a test that appears to be valid because external observers assume, without proof, that it is.  Unstructured interviews are less reliable and less valid than structured interviews.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 30 Structured Interviews Structured Interview  Uses a set of standardized questions asked of all job applicants  Useful for initial screening and comparisons Benefits  Obtains consistent information needed for selection decision  Is more reliable and valid than other interview formats  Meets human rights guidelines for the selection process

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 31 Structured Interviews (cont’d) Biographical Interview  Focuses on a chronological exploration of the candidate’s past experiences. Behavioural Interview  Applicants are asked to give specific examples of how they have performed a certain task or handled a problem in the past.  Helps discover applicant’s suitability for current jobs based on past behaviours.  Assumes that applicants have had experience related to the problem.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 32 Structured Interviews (cont’d) Competency Interview  Similar to the behavioural interview except that the questions are designed specifically to provide the interviewer with something to measure the applicant’s response against—that is, the “competency profile” for the position, which includes a list of competencies necessary to do that particular job. Situational Interview  Applicants are asked how they would respond to a specific job situation related to the content of the job they are seeking.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 33 Less Structured Interviews Nondirective Interview  Applicants are queried using questions that are developed from the answers to previous questions.  Possibility of not obtaining needed information.  Information obtained may not be not job-related or comparable to that obtained from other applicants. Stress Interviews  An interview designed to create anxiety and put pressure on an applicant to see how the person responds.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 34 Who Conducts Interviews? Video Interviewing IndividualsIndividuals Panel Interviews Team Interviews InterviewsInterviews

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 35 Selection Interviewing Conducting an Effective Interview  Planning the interview  Controlling the interview  Using effective questioning techniques  Taking excessive notes during all stages of the interview process

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 36 Questions Commonly Used in Selection Interviews Fig. 6-9

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 37 Selection Interviewing Effective Interviewing Questions to Avoid  Close ended questions  Obvious questions  Questions that rarely produce a true answer  Leading questions  Illegal questions  Questions that are not job related

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 38 Selection Interviewing Problems in the Interview Halo Effect Snap Judgments Negative Emphasis Biases and Stereotyping InfluenceTacticsInfluenceTactics

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 39 Background Investigation Four Goals of Background Screening :  Demonstrates due diligence in hiring  Provides factual information about candidates  Discourages applicants who have something to hide  Encourages applicants to be honest on application forms and in interviews

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 40 Background Investigation Sources of Background Information  Motor vehicle records  Credit history  Honesty tests  Social Insurance Number  Sex offenders lists  Previous-employment records  Criminal records  Drug tests  Education/degree documentation  Professional certifications/licenses

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 41 Background Investigation Reference Checking Methods  Telephoning the reference  Use of preprinted reference forms Giving References on Former Employees  Employers may incur liability for statements made about former employees.  Employers have adopted policies restricting the release of reference information to name, employment dates, and job title.  Employers fear incurring liability for failing to reveal an employee was fired for criminal behaviour.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 42 Background Investigation Legal Constraints on Background Investigation  Risks of negligent hiring and retention  Due diligence: investigating an applicant’s background to avoid suits for actions of the employee.  Obtaining signed releases from applicants is necessary to avoid problems with privacy issues.  Negligent hiring  Occurs when an employer fails to check an employee’s background and the employee injures someone.  Negligent retention  Occurs when an employer becomes aware that an employee may be unfit for employment, continues to employ the person, and the person injures someone.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 43 Background Investigation Credit Checks  Requires disclosure of a credit check  Requires written consent of applicant  Requires copy of report be given to the applicant Medical Examinations and Inquiries  Determines physical and mental capabilities for performing jobs  Implemented once a conditional offer is made  Employer pays for the exam

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 44 Medical Examinations and Inquiries Drug Testing  Acceptable Uses in Canada:  As part of an investigation in an unfit for duty (reasonable cause) or post accident/incident situation  As part of a monitoring program after treatment  As a condition of return to duty after a policy violation  On an on-going follow-up basis  As a condition of certification to a higher safety-risk position and on a random basis for alcohol only  As part of a comprehensive policy which includes accommodation measures for alcohol or drug dependency Genetic Testing  Prohibited in employment testing in Canada

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 45 Making the Final Decision Combining Predictors  Multiple Hurdles  Establishing a minimum cutoff (level of performance) for each predictor, and requiring that each applicant must score at least the minimum on each predictor to be considered for hiring.  Compensatory Approach  Scores on all predictors are added together, allowing a higher score on one predictor to offset a lower score on another predictor.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 46 Making the Job Offer Offer Guidelines  Formalize the offer with a letter to the applicant clearly stating the terms and conditions of employment.  Avoid vague, general statements and promises.  Have legal counsel review the offer document.  Require return of a signed acceptance of the offer.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 47 Staffing Global Assignments Types of Global Employees ExpatriateExpatriate Third-Country National Host-Country National

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 6 – 48 Selection Factors for Global Employees Fig. 6-11