Human Resource Management

Dr. Karim Kobeissi Islamic University of Lebanon - 2014

Chapter 6: Selection

Selection• Selection is the process of choosing the individual

best suited for a particular position and the organization from a group of applicants.

• The goal of selection is to properly match people with jobs and organization: If individuals are over- or under-qualified, or do not fit the job or the organization’s culture, they will be ineffective and probably leave the firm, voluntarily or otherwise.

• Selecting wrong person for any job can be costly.

Environmental Factors Affecting the Selection Process

A consistent selection process cannot always be used because of the environmental factors:

• Other HR functions• Legal considerations• Decision-making speed• Organizational hierarchy• Applicant pool• Type of organization• Probationary period

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Legal Considerations• Although the basic purpose of selection is to

determine candidates’ suitability for employment, it is also essential for organizations to maintain nondiscriminatory practices.

• The guiding principle in determining what questions to ask is whether the information being gathered is job related.

• If information is job related, usually asking for the information is appropriate.

Applicant Pool and Selection Ratio

• The applicant pool represents the number of qualified applicants recruited for a particular job.

• The number of people actually hired for a particular job compared to the number of individuals in the applicant pool is often expressed as a selection ratio.

Type of OrganizationThe type of organization doing the hiring also influences

the selection process. • Private-sector businesses tend to be profit-oriented and

hire people from the labor market with a private-sector background (to take advantage of their experiences in other companies).

• Government civil service systems typically Identify qualified applicants through competitive examinations.

• Not-for-profit organizations confront a situation where salaries are considerably lower, so candidates must be dedicated to this type of work and to the particular organization (e.g., Caritas).

Probationary Period

• The purpose of a probationary period is to establish the suitability of a new employee for the role and to resolve any issues about the new employee’s performance over the first three months or so.

• From a legal viewpoint, the use of a probationary period in the selection process is justified only if it is related to performing the job’s duties.

Applicant Tracking Systems

An applicant tracking system is a software

program designed to help an organization select

employees more efficiently. These systems

allow managers to post job openings, screen

résumés, review test results, generate interview

requests, and handle background checks. The

goal is to reduce costs and speed up the hiring

process.

Review of Applications and Résumés

Application form must reflect firm’s informational needs and EEO requirements.– The specific information requested on an application form

may vary from firm to firm, but typically includes name, address, military service, education, and work history.

– The candidate certifies that information provided is accurate.– When not prohibited by state law, the form should also

indicate that the position is employment at will and that either the employer or the employee can terminate employment at any time for any reason.

– Gives permission for background check

Review of Applications and Résumés (con)

• Managers compare the information contained in a completed

application to the job description to determine whether a

potential match exists between the firm’s requirements and the

applicant’s qualifications.

• A résumé is a summary of the applicant’s experience,

education, and training that he or she has developed for use in

a job hunting. Professional and managerial applicants often

begin the selection process by submitting a résumé that clearly

shows they have the skills and competencies necessary for

success in the position.

Résumés and Keywords

• Most large companies now use applicant-tracking systems that scan or save résumés into databases, search the databases, and rank the résumés according to the number of resulting “matches” they find. Because of this trend, job applicants should make their résumés as computer friendly as possible by writing in a keyword résumé style.

• Keywords are the job-related words or phrases that are used to search databases for résumés that match. The keywords are often job titles, skills, or areas of expertise related to the position.

• A keyword résumé contains an adequate description of the job seeker’s characteristics and industry-specific experience in order to accommodate the computer search process.

Potential Problems of Using Selection Tests

• Selection tests may accurately predict an

applicant’s ability to perform the job, but are less

successful in predicting what the individual will

actually do when on the job.

• Another potential problem is that applicants with

test anxiety may have their true abilities

underestimated.

Characteristics of Properly Designed Selection Tests• Properly designed selection tests have a number of important

characteristics: - First, standardization is the uniformity of the procedures and

conditions related to administering tests. In order to compare the performance of several applicants on the same test, it is necessary for everyone to take the test under conditions that are as identical as possible.

- Second, objectivity in testing occurs when everyone scoring a test obtains the same results. Multiple-choice and true–false tests are usually objective if there is one clearly correct answer.

- Third, a norm is a frame of reference for comparing an applicant’s performance with that of others. A norm reflects the distribution of many scores obtained by people similar to the applicant being tested.

Characteristics of Properly Designed Selection Tests (cont)

• Reliability is the extent to which a selection test provides consistent results.

• Validity is the extent to which a test measures what it claims to measure.

• An example of the difference between reliability and validity can be illustrated as follows: If a person weighs 200 pounds but the scale shows a wide difference, such as 150, 295, and 340, the scale is not reliable. If the scale consistently reads “100” and you weigh 200 pounds, then it is reliable, but not valid. If it reads “200” each time, then the measurement is both reliable and valid.

Test Validation Approaches

There are a number of ways that selection test can be validated:• Criterion-related validity compares the scores on the selection test

to some aspect of job performance by a representative sample of others who have taken the test. Performance measures might include the quantity and quality of work. A close relationship between the score on the test and job performance suggests that the test is valid.

• Content validity is measuring whether a person can perform certain tasks required by the job or has relevant job knowledge. An example of the use of content validity is giving a word processing test to an applicant whose primary job would be inputting text on the computer.

• Construct validity has to do with whether a test measures qualities or traits that job analysis finds to be important in performing a job. For instance, a job may require a high degree of creativity or reasoning ability. However, it should be stressed that construct validity by itself is not a primary method for validating selection tests.

Forms of Criterion-Related Validity

• Concurrent validity is determined when test scores and

criterion data are obtained at the same time; for instance,

administering the test to all currently employed telemarketers

and comparing the results with company records about each

employee’s job performance. If the test is able to identify

productive and less-productive workers, one could say that it

is valid. A potential problem in using this validation procedure

results from changes that may have occurred within the work

group, such as less-productive workers being fired or more-

productive employees being promoted out of the group.

Forms of Criterion-Related Validity (con)

• Predictive validity involves administering a test and later

obtaining the criterion information. For instance, all

applicants take the test, but the firm uses other selection

criteria, not the test results, to make the selection decision.

After observing employee performance over time, the

company analyzes test results to determine whether they

differentiate successful and less-successful employees.

Predictive validity is a technically sound procedure, but is

often not feasible because of the time and cost involved.

Types of Employment Tests

Employment tests are also designed to measure individual differences related to job performance. These differences can relate to:

• Cognitive aptitude

• Psychomotor abilities

• Job knowledge

• Work-sample (simulation)

• Vocational interests

• Personality

Job-Knowledge Tests

• Job-knowledge tests measure a candidate’s general knowledge of the duties of the job for which he or she is applying.

• While such tests are commercially available, individual firms may design them based on data derived from a specific job analysis.

Vocational Interests Tests

• Vocational interest tests indicate the occupations a person is most interested in and that will likely provide satisfaction.

• However, having interest in a job and being able to effectively perform it may not be the same. For example, a person may have an interest in being a brain surgeon, but not the aptitude for it.

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Online Assessment • Organizations are increasingly using online

assessments to test various skills required by applicants.

• More companies want assessments that can be given directly on their web-based career centers with the results funneled to an applicant tracking system.

• Some of these tests evaluate the technical skill levels of job applicants.

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Assessment Centers• An assessment center is a selection approach

that requires individuals to perform activities similar to those of the actual job.

• This is one of the most powerful tools for assessing managerial talent because it uses realistic simulations such as in-basket exercises, leaderless discussion groups, and mock interviews.

• Professional assessors evaluate the candidates’ skills in prioritizing, delegating, resolving conflict, and decision making.

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Employment Interview

The employment interview is a job-focused conversation in which the interviewer and applicant exchange information. In general, interviews have not been valid predictors of success on the job. The traditional employment interview is still important, however, because the applicants who reach this stage are seen as qualified, at least on paper, and want to meet a potential employer face-to-face

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Content of the InterviewThe interviewer will typically focus on the following areas during an

interview:• Occupational experience in the candidate’s past experience, which

indicates relevant knowledge, skills, abilities, and willingness to handle responsibility.

• Academic achievement may be important for younger applicants just out of school who lack significant work experience.

• Interpersonal skills are an important indicator of whether a person can work well with others or on a team.

• Personal qualities observed during the interview include appearance, speaking ability, adaptability, assertiveness, and cooperativeness.  

During the interview, the interviewer should provide information about the company, the job, and the expectations of the position.

Organizational Fit

• Organizational fit refers to management’s perception of

the degree to which the prospective employee will fit in

with the firm’s culture or value system.

• There is evidence that managers routinely use

organizational fit in making selection decisions.

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Behavioral Interview• The behavioral interview is a structured interview in which applicants are

asked to relate actual incidents from their past relevant to the target job.

• Behavioral interviewers look for three main things: - A description of a challenging situation - What the candidate did about it - Measurable results

• For example, when probing for technical knowledge, the candidate might be asked: “Describe a situation in which your expertise made a significant difference”.

• Behavioral interviewers ask all candidates the same open-ended questions, then score responses on a scale. This type of interviewing is based on the principle that what you did previously is a good predictor of what you will do in the future.

Methods of Interviewing

• In a typical employment interview, the applicant meets one-

on-one with an interviewer.

• In a group interview, several applicants interact in the

presence of one or more interviewers.

• In a board interview, several of the firm’s representatives

interview a candidate at the same time.

• Finally, in the stress interview, the interviewer intentionally

creates anxiety to see how the candidate performs under

pressure.

Potential Interviewing ProblemsThere are a number of potential interviewing problems that can

threaten the success of employment interviews. Good interviewers are trained to avoid:

• Inappropriate questions

• Permitting non-job-related information

• Premature judgment

• Interview illusion

• Interviewer domination

• Contrast effect

• Lack of training

• Nonverbal communication

Inappropriate Questions

One simple rule governs interviewing: All

questions must be job-related. Interviewers

should frame questions in terms of whether

applicants can perform the essential functions of

the jobs for which they are applying.

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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.

• The interviewer might even want to begin by tactfully stating that the selection decision will be based strictly on the candidate’s job-related qualifications and that the conversation should stay focused on job-related topics.

Premature Judgments

• Research suggests that interviewers often make

premature judgments about candidates in the first

few minutes of the interview.

• Premature judgments may come from “interview

illusion”—the certainty that one is learning more in

an interview than one really is. When this happens,

a great deal of potentially valuable information is

not considered during the rest of the interview.

Contrast Effects

• A contrast effect occurs when an interviewer

meets with several poorly qualified applicants and

then sees an average candidate. The last

applicant may appear to be better qualified than

he or she actually is.

• The opposite can also occur. 6-51

Lack of Training

Adequate training is necessary for people to

become effective interviewers. Interviewing is not

the same as just having a conversation, and there

should be a reason for asking each and every job-

related question. 6-52

Concluding the Interview

• When interviewer has obtained necessary information and answered applicant’s questions, he or she should conclude the interview.

• Tell applicant that he or she will be notified of the selection decision shortly.

• Management must then determine whether candidate is suitable for the open position and organization.

Continuous Background Investigation

• Some employers are screening their employees on an ongoing basis.

• In certain industries, such as banking and healthcare, employers are required by regulation to routinely research the criminal records of employees.

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Hiring Standards to Avoid

• Some of standards used in background investigation have potential to violate equal employment opportunity and affirmative action laws.

• When HR management practices eliminate substantial numbers of minority or women applicants, the burden of proof is on the employer to show that the practice is job related.

• Examples: Criminal conviction

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Reference Checks • Information from individuals who know

applicant. • Provide additional insight into

information furnished by applicant.• Verify accuracy of information.• Possible defect: Virtually everyone can

name three or four individuals willing to make favorable statements.

Reference Checks (cont.)• The amount of protection given to those who provide references

varies greatly. Laws in many states protect employers from liability for harm to an ex-employee based on job references they provide. The intent of this legislation is to make it easier for employers to give and receive meaningful information.

• Two Even so, there are two schools of thought with regard to supplying information about former employees:

- One is “Don’t tell them anything.” In this case, the employer provides only basic data, such as job title and dates of employment.

- The other approach is “Honesty is the best policy.” This is based

on the reality that “facts honestly given” or “opinions honestly held” constitute a solid legal defense.

Automated Reference Checking

• Traditional reference checking takes a lot of time, so some firms have begun using automated reference checking instead.

• With this system, the job candidate contacts references directly and asks them to fill out an online questionnaire.

• The system automatically collects the surveys and prepares a report for the recruiter.

• The company does not run the risk of a recruiter asking an inappropriate question because the questions are standardized.

Negligent Hiring

• Negligent hiring is the liability an employer incurs when

it fails to conduct a reasonable investigation of an

applicant’s background, and then assigns a potentially

dangerous person to a position in which he or she can

inflict harm, such as fraud, assault, or interference with

contractual relations.

• The primary consideration in negligent hiring is whether

the risk of harm from an employee was reasonably

foreseeable by the employer.

Notification to Candidates

• Results should be made known to candidates as soon as possible.

• Delay may result in firm losing prime candidate to competitors.

• Unsuccessful candidates should also be promptly notified.

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Metrics for Evaluating Recruitment Effectiveness

• Top candidates for nearly any job are hired and off the job

market in 1 to 10 days, so it is crucial for the time required

to hire be as low as possible.

• The question of how to measure quality of hire and set

standards for new-hire performance is difficult to determine.

For quality of hire to be usable, one needs to have accurate

performance assessment for several months or even years

before the real capabilities of a new hire will be fully

understood.

Metrics for Evaluating Recruitment Effectiveness (cont.)

• New hire retention is determined by calculating the percent of new hires that remain with the company at selected intervals, typically one or two years.

• New hire retention is critical because costs go up dramatically if a position has to be filled again in a short period.

• If new hires are not staying, then HR should analyze the selection process to determine if there are flaws in the system.

• The quality of the firm’s selection process can also be evaluated by using the hiring manager’s overall satisfaction with how a new hire is performing after the first 90 days. If there are consistently low scores, it may indicate that the hiring process is deficient in some respect.

• Turnover rate: Average number of times employees have to be replaced during a year. If it is excessively high, this may indicate a broader organizational issue.

Metrics for Evaluating Recruitment Effectiveness (cont.)

• Recruiting cost per hire is the total recruiting expenses

divided by the number of recruits hired.

• The selection rate is the percentage of applicants hired

from the entire pool of candidates.

• The acceptance rate is the number of applicants who

accepted the job divided by the total number of

candidates who were offered the job. If this rate is

unusually low, it would be wise to determine the reason

that applicants are turning down jobs with the firm.

Metrics for Evaluating Recruitment Effectiveness (cont.)

• The selection process can be viewed as a funnel, with the

number of applicants available at each stage of the selection

process getting smaller.

• The yield rate is the percentage of applicants from a particular

source and method that make it to the next stage of the

selection process.

• Organizations should maintain employment records and

conduct periodic analyses in order to determine the

cost/benefit of their recruitment sources and methods.