Chapter OutlineTHE STRATEGIC IMPORTANCE OF SELECTIONSelection and Strategy ImplementationThe Economic Utility of Effective SelectionThe HR TriadTHE HR TRIAD: ROLES AND RESPONSIBILITIES IN SELECTING APPLICANTSSelection within an Integrated HRM SystemOVERVIEW OF THE SELECTION PROCESSMANAGING CHANGE: SELECTING EMPLOYEES FOR A NEW PLANTEstablish the Criteria of InterestChoose Predictors and Assessment TechniquesMANAGING TEAMS: SELECTING THE WALT DISNEY CASTDecide When to Measure Each PredictorSynthesize Information to Choose AppropriateCandidates

Chapter Outline (contd)TECHNIQUES FOR ASSESSING JOB APPLICANTSPersonal History AssessmentsReference Checks and Background VerificationWritten TestsWork SimulationsAssessment CentersInterviewsMedical TestsTHE PERSPECTIVE OF APPLICANTSFair Content?Fair Process?MANAGING TEAMS: Hiring At Advanced Financial SolutionsResults of the Selection Decision

Chapter Outline (contd)LEGAL CONSIDERATIONS IN SELECTIONLaws and Regulations That Prohibit DiscriminationFederal Guidelines and Professional StandardsDetecting Unfair DiscriminationDefending Discriminatory PracticesLegal Considerations for Global SelectionGLOBAL SELECTION CHOICESMANAGING GLOBALIZATION: Hiring Is No Laughing Matter For Cirque Du SoleilCASE STUDY: SELECTING PATIENT ESCORTS

The Strategic Importance of SelectionSelectionThe process of obtaining and using information about job applicants to determine who should be hired for long- or short-term positions.First, assess job requirementsThen assess that applicants are:Capable of high productivityMotivated to stay with the organization for as long as the organization wants to employ themAble to engage in behaviors that result in customer satisfactionCapable of implementing the strategy of the company.

Uses of Selection DecisionsFill open jobsFill future openingsPromoteTransferAppoint to task forceDecide to mentor

Selection and Strategy ImplementationEffect of Selection PracticesSelection practices contribute to (or detract from) an organizations strategic capabilities.Effect on Executives Managerial competencies change as the business changes through growth or acquisition.Other EmployeesAll employees need to perform well and be good corporate citizens.

The Economic Utility of Effective Selection PracticesValue of DecisionPotential value is high for key positionsAccumulated effect of good (or bad) selection decisions adds upRisk of harm and lawsuits can be minimized by effective screeningCost of DecisionTime and resources used to collect info about applicantsMore expensive procedures justified when:Tenure will be long.Increases in performance have large impact.There are many applicants.Economic utility: the net monetary value associated with using a a selection procedure.

The Consequences of Correct and Incorrect Selection DecisionsReject aqualifiedcandidate(incorrectdecision)Accept aqualifiedcandidate(correctdecisionReject anunqualifiedcandidate(correctdecision)Accept anunqualifiedcandidate(incorrectdecision)Employers Selection DecisionHow Employee PerformsDo not offer jobOffer the job HighperformanceLowperformanceEX 7.1 (adapted)

The HR Triad: Roles and Responsibilitiesfor SelectionLine ManagersIdentify staffing needsHelp HR define performance criteriaHelp HR develop selection toolsCoordinate process with applicants and HRAdminister some selection testsComply with lawsProvide accurate reference infoSupport ADAHR ProfessionalsDevelop/choose reliable and valid selection testsCoordinate selection processSelect and evaluate vendors of selection servicesArrange interviewsTrain others involved in selectionKeep records and monitor outcomes for legal complianceEmployeesApply for transfers, promotionsIdentify criteria for evaluating performanceInterview/select new group membersAttend training in selection processesSelf-select into jobs that are good fitInform managers of disabilities requiring accommodation

How Centralizing Selection and Placement Activities Can Benefit Job ApplicantsBenefits for ApplicantsConvenient: Applicants go to only one place to apply for all jobs in the company.Good Match to Job:Specialists trained in staffing techniques do hiring, so the selection decisions are often better, resulting in personal success.Fair: People who know about the many legal regulations relevant to selection handle a major part of the hiring process, which improves legal compliance.EX 7.2

How Centralizing Selection and Placement Activities Can Benefit EmployersBenefits for EmployersEfficient: The company can consider each applicant for a variety of jobs, which is efficient.Effective:Specialists trained in staffing techniques do hiring, so the selection decisions are often better, resulting in better business performance.Consistent: Common selection standards make it easier to maintain a workforce of consistent quality, which facilitates employee mobility between business units.EX 7.2 (contd)

Selection within an Integrated HRM SystemEX 7.3

The Selection RatioThe proportion of applicants hired in relation to the number of applicants in the initial pool.Lower ratio = More opportunity to find outstanding candidatesLower ratios occur when:Recruitment is effective.There is high unemployment.

Overview of the Selection ProcessEstablish the criteria of interestChoose predictors and assessment techniquesDecide when to measure each predictorSynthesize information and make the selection

Possible Assessment Techniques for Several CompetenciesEX 7.4MQ=Is a minimum qualificationMT=May be acquired through training or on the job (desirable); preference may be given to those who possess this competencyMA=Can be accommodated within reasonWT=Will be acquired through training or on the job; not evaluated in the selection processSAF=Supplemental Application FormWKT=Written Knowledge TestWS=Work SamplePCD=Physical Capability DemonstrationSPI=Structured Panel InterviewDMI=Departmental Manager InterviewBI/REF=Background Investigation/Reference CheckPAF=Performance Appraisal Form (internal hires only)

Establish the Criteria of InterestCriteriaOutcomes that selection decisions are intended to predict.What is Effective Performance?Determined by using job analysis to examining the organizational context:Company cultureValuesBusiness StrategyStructure

Choose Predictors and Assessment TechniquesPredictorsPieces of Information used to make a selection decisionApplications, resumes, tests, interviewsAssessment TechniquesDesigning predictorsChoosing how to measure the predictors of interestEstablish ValidityAffirming the usefulness of gathered information for predicting applicants outcomes

Basic Validity StrategiesValidity GeneralizationContent ValidationCriterion-related ValidationValidity

Content ValidationContent ValidationUsing job analysis results to build a rational argument for why a predictor should be useful.Competency modeling is used to determine job requirementsExpert(s) determine which predictors will best predict job success.Most commonly used validation strategyEspecially useful when organization is creating new jobsPractical approach, but subjective

CriterionRelated ValidationIndividuals are assessed on both the predictor and their job performanceAnalysis of statistical correlations is used to establish the relationship between predictor scores and criteria.High (low) predictor scores correlate with high (low) job performance Costly and requires a large number of incumbents to use this approach.

Validity GeneralizationAssumes that results of criterion-related validity studies performed in companies can be generalized to other companies.Relatively new approachMany selection techniques have been shown to be valid across variety of jobsPredictors must be relevant to the job.

Validity Estimates for Several Selection TechniquesEX 7.5

Designing the Selection ProcessThere may be several means that can be used to assess each predictor.For example, communication skills can be assessed by:Supplemental applicationPanel InterviewManager InterviewReference Check

Choosing Reliable PredictorsReliabilityThe degree to which a predictor yields dependable, consistent resultsReliable predictors dont change different circumstances (e.g., different test administrators or interviewers)Test-Score BandingGrouping applicants into clusters considered equally qualified for a job, despite small differences in their scores.A secondary criteria is used to break ties within the band.

Decide When to Measure Each PredictorIn most selection processes, there will always be more applicants than there are positions to be filled.Use less expensive procedures early in the process to remove applicants fail to do well early in the process.Use information from previous steps to decide which applicants will move to the next more expensive step in the selection process.

Synthesize Information to Choose Appropriate CandidatesMultiple HurdlesAn applicant must exceed fixed levels of proficiency on all the predictors in order to be accepted.CompensatoryA high score on one predictor can compensate for a low score on another predictor.Combined Screening applicants who meet one or more specific requirements, and then using a compensatory approach in comparing the applicants who have passed the required hurdle.

An Approach to Selecting Team Members in a Total Quality Production PlantEX 7.6

Techniques for Assessing ApplicantsAssessment TechniquesReference and Background ChecksWritten TestsWork SimulationsAssessment CentersInterviewsMedical TestsPersonal History Assessments

Personal History AssessmentsPast behavior is a good predictor of future performanceApplication BlankHelps determine if applicant possesses minimum job-related requirements and applicants preferences.Education and experience are important considerations for high-level jobs.Biodata TestsAsks applicants to provide autobiographical information about past and current activities.Are long and items may appear to be unfair, invasive, and not job-related to applicants.Are effective predictors of overall performance.

Reference Checks and Background VerificationReference VerificationVerify that information on applications and resumes is accurate.Negligent hiring: employers have a legal duty to not hire unfit persons.Employers can hire outside investigators or personally contact prior employers.Not an infringement on privacy if job-related.May be difficult to obtain information because previous employers fear defamation lawsuits.

Verification Checks Reveal Applicants LiesEX 7.7Note: Information checked included employment histories, educational background, and credentials. Figures indicate the percentage of time the information reported by the applicant did not agree with the information revealed during the reference checks.

Written TestsAbility TestsMeasure potential of individual to perform, given the opportunityTypes of abilities:PsychomotorPhysicalCognitiveUsed by about 30% of employersMay result in adverse impactKnowledge TestsAssess what a person knows at the time of taking the testUseful for jobs requiring specialized or technical knowledge

Written Tests (contd)Personality TestsAssess the unique blend of personal characteristics that define individuals and Determine their patterns of interactions with the environment.Big Five personality dimensions:ExtraversionAgreeablenessConscientiousnessEmotional stabilityOpenness to experienceIntegrity TestsCan predict dishonest and disruptive work behaviorsPaper-and-pencil tests have replaced lie detectors which were banned as selection tools by Employee Polygraph Protection Act of 1988

Work Simulations (Work Samples)Applicants perform activities similar to those required on the jobDifficult to fakeMore valid than other methodsLess likely than other methods to unfairly discriminateExpensive to develop

Assessment CentersCandidates participate in multiple assessment techniquesTechniques simulate the job environmentCandidates evaluated on multiple job dimensionsCostly, but nondiscriminatory and valid across culturesTypical Techniques:In-Basket exerciseLeaderless group discussionBusiness game

InterviewsMost widely used selection procedureStructured and semi-structured interviews are more valid than unstructuredStructured interviews ensure the same questions will be asked of all applicants.Unstructured interviews lack validity and reliability.Interview DesignStructured questionsFocus on behaviorSystematic scoringMultiple interviewersInterviewer training

Examples of Questions to Use in a Structured InterviewEX 7.8COMPETENCY BEING ASSESSED: RELATIONSHIP BUILDINGInterview Questions Designed to Focus on Behavioral Descriptions1.Sketch out two or three key strengths you have in dealing with people. Can you illustrate the first strength with a recent example? [Repeat same probes for other strengths.]Probes: When did this example take place? What possible negative outcomes were avoided by the way you handled this incident? How often has this situation arisen? What happened the next time this came up?

2.Tell me about a time when you used your people skills to solve a customer problem.Probes: When did this take place? What did the customer say? What did you say in response? How did the customer react? Was the customer satisfied?

3.Maintaining a network of personal contacts helps a manager keep on top of developments. Describe some of your most useful personal contacts. Probes: Tell me about a time when a personal contact helped you solve a problem or avoid a major blunder. How did you develop the contact in the first place? What did you do to obtain the useful information from your contact? When was the next time this contact was useful? What was the situation at that time? How often in the past six months have personal contacts been useful to you?

Comparison of Practices Used in Selected Countries (Part A)EX 7.9

Behavioral Job InterviewsAsk interviewee to describe specific instances of past behaviorInstance illustrates relevant competencyResearch shows past behavior is best predictor of future behavior.Ask interviewee to respond to hypothetical job situationsApplicant may describe or role-play what she or he would do.Research shows behavioral intentions predict behavior.

Trained InterviewersGive raters specific criteria and scoring keys to evaluate responsesUse panel interviews for efficiency and reliabilityTrain interviewers:Minimize bias and first impressionsEnsure job-relatedness and consistencyProvide frame-of-reference training

Medical TestsTesting restrictions under the Americans with Disabilities Act (ADA) of 1990It is illegal to inquire about disabilities before a job offer is made.General health exams can only be given after a job offer has been made.Employers are expected to make reasonable accommodations (but not preferences) for otherwise qualified disabled candidates. Job analysis can support screening (denial of employment) related to physical, sensory, perceptual, and psychomotor disabilities.

Medical TestsGenetic Testing and ScreeningIdentifies individuals risks of future medical problemsControversial: Restrictions at state levelFederal legislation likelyDrug and Alcohol TestingPreemployment testing is permissible and may be mandatoryPermissible under ADA

Drug Test ResultsEX 7.10Note: Based on 5.7 million tests conducted by Quest Diagnostics, 2002.

Comparison of Practices Used in Selected Countries (Part B)EX 7.11

The Perspective of ApplicantsApplicants reactions to the selection process influence their:Decision to join an organizationDecision to remain with an organizationLevel of work motivationSocialization into the organizationApplicants judge selection fairness by:The content of selection measuresThe fairness of the selection processThe results of the selection process

Laws and Regulations That Prohibit DiscriminationTitle VII of the Civil Rights ActExecutive Order 11246Age Discrimination in Employment ActRehabilitation ActAmericans with Disabilities Act

Federal Guidelines and Professional StandardsEqual Employment Opportunity Commission (EEOC) publishes:Uniform Guidelines on Employee Selection Procedures (1978)Other EEOC guidelines (e.g., national origin, age, and religious discrimination)Technical Assistance Manual on Employment Provisions (ADA)Other Professional Standards:American Psychological AssociationSociety for Industrial-Organizational Psychology

Detecting Unfair DiscriminationPerson (plaintiff) alleging discrimination Files complaint with EEOC (Equal Employment Opportunity Commission).EEOC investigates and attempts resolution.If plaintiff continues and files lawsuit, he/she must demonstrate a prima facie case of discrimination.

Detecting Unfair Discrimination (contd)Disparate TreatmentIllegal discrimination against an individualPrima Facie Cases of DiscriminationIndividual belongs to a protected groupIndividual applied for job for which employer seeking applicantsIndividual is qualified but was rejectedEmployer kept looking for people with applicants qualifications

Detecting Unfair Discrimination (contd)Adverse (Disparate) ImpactDiscrimination against an entire protected groupBased on statistics from large number of hiring decisionsFocuses on consequences of selection practices, not employers intentMay be shown by audit of EEO-1 reportsLabor Market Comparisons:Compare representation of protected group to the relevant labor market.Point of contention is what is the relevant labor market.

Detecting Unfair Discrimination (contd)The 80% (Four-fifths) Rule:Evaluating adverse impact by comparing the representation of a protected group in an applicant pool to its representation among those hired, fired, promoted, transferred or demoted.Example:Selection of firefighters with physical ability test:10% pass rate for women30% pass rate for men10%/30% = 67%.The pass rate for women is less than 80% the pass rate of men; there is evidence of adverse impact.

Detecting Unfair Discrimination (contd)Bases for employers defense in prima facie cases of disparate treatment or disparate impact:Job relatednessBusiness necessityBona fide occupational qualification (BFOQ)Bona fide seniority systemVoluntary affirmative action program

Legal Considerations for Global Selection1991 Civil Rights ActAmerican civil rights laws cover U.S. citizens employed abroad by American multinationals.Foreign companies operating within the U.S. must adhere to U.S. employment laws.There are exceptions (e.g. trade treaties) and this is complex legal and social area.Fortino v. Quasar Co.

Selecting Managers: Pros and Cons of PCNs, HCNs, and TCNsEX 7.12AdvantagesOrganizational control and coordination is maintained and facilitated.Promising managers are given international experience.PCNs are the best people for the job.The subsidiary will likely comply with the company objectives, policies, and so forth.DisadvantagesThe promotional opportunities of HCNs are limited.Adaptation to the host country may take a long time.PCNs may impose an inappropriate headquarters style.Compensation for PCNs and HCNs may differ.PARENT-COUNTRY NATIONALS (PCNS)AdvantagesLanguage and other barriers are eliminated.Hiring costs are reduced, and no work permit is required.Continuity of management improves, since HCNs stay longer in positions.Government policy may dictate the hiring of HCNs.Morale among HCNs may improve as they see the career potentials.DisadvantagesControl and coordination of headquarters may be impeded.HCNs have limited career opportunities outside the subsidiary.Hiring HCNs limits opportunities for PCNs to gain overseas experience.Hiring HCNs could encourage a federation of national rather than global units.HOST-COUNTRY NATIONALS (HCNS)

Selecting Managers: Pros and Cons of PCNs, HCNs, and TCNsEX 7.12 (contd)AdvantagesSalary and benefit requirements may be lower than for PCNs.TCNs may be better informed than PCNs about the host-country environment.DisadvantagesTransfers must consider possible national animosities.The host government may resent the hiring of TCNs.TCNs may not want to return to their own countries after assignment.THIRD-COUNTRY NATIONALS (TCNS)

TERMS TO REMEMBERAbility testAdverse impactApplication blankAssessment centersBehavioral job interviewsBiodata testBona fide occupational qualification (BFOQ)Bona fide seniority systemBusiness necessityCombined approachCompensatory approachContent validationCriteriaCriterion-related validationDisparate treatmentEconomic utility80% ruleJob-relatednessKnowledge testMultiple-hurdles approachPersonality testsPredictorsReliabilitySelectionSelection ratioStructured job interviewTest-score bandingUnstructured job interviewValidityValidity generalizationWork simulations

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