HRM Case

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Chapter 6: Selecting New Employees

The Selection Process

Selection Process: Process of choosing the best qualified applicant for a job.

Focus on Fit

Firms should always seek to hire the most highly-skilled employees to maximize their output.

The selection process is very critical to the organization.

The Importance of the Selection Process

Bad Hires. . .

Cost time and money

Result in lower productivity

Can be negligent hires

The Importance of the Selection Process

Negligent Hire

A legal concept that says if the organization hires someone who may pose a danger to coworkers, customers, suppliers, or other third parties, and if that person then harms someone else in the course of working for the company, then the company can be held liable for the individual’s actions.

Exhibit 6-1: Steps in the Selection Process

Depending on organizational circumstances, steps may not be followed sequentially, or some parts may not be included.

Exhibit 6-1: Steps in the Selection Process

Looking for Fit

Personality–Job Fit: Personality affects how people work

Ability–Job Fit: Physical and intellectual skills affect how people work

Person–Organization Fit: How individuals fit within the structure and how culture affects how they work

Uniform Guidelines on Employee Selection Procedure

Uniform Guidelines on Employee Selection Procedures (UGESP or “Uniform Guidelines”) were developed by the government to guide employers.

They comply with federal laws that concern employment decisions.

They provide information that avoids discriminatory hiring practices and discrimination in other employment decisions.

What Qualifies as an “Employment Test”?

Employment Test: Any test or selection procedure that is used as a basis for employment decisions.

Employment Decisions

Hiring and training

Promotion and demotion

Membership

Referral and retention

Licensing and certification

Transfer

Valid and Reliable Measures

To be nondiscriminatory, employment tests must have validity and reliability.

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

Criterion-related validity

Content validity

Construct validity

Reliability is the consistency of a test measure.

Applications and Preliminary Screening

Applications and Résumés

Applicants’ information is compared to job specifications. This weeds out unqualified applicants and finds the best applicants.

Information is verified to detect fictitious or misleading information and to protect organizations against negligent hiring claims.

Pre-Employment Inquiries

Information requested on job applications and during interviews must be nondiscriminatory.

Every question should be job related.

Questions of a general nature should be asked of all applicants.

Questions that may be construed as discriminatory can be asked if employers can demonstrate they are job related (BFOQs).

Exhibit 6-2: Pre-Employment Inquiries

The EEOC and Employment Testing

If the EEOC investigates a complaint about an employment test being discriminatory, the company must prove the selection procedure is valid for that particular job.

Types of Tests

Polygraph Testing

Employee Polygraph Protection Act (EPPA) makes it illegal to use a polygraph, but has two exceptions.

Exhibit 6-3: Exceptions to the EPPA for Polygraph Testing

Types of Tests

Genetic Testing

Genetic Information Nondiscrimination Act (GINA) protects people from discrimination by health insurers and employers on the basis of their DNA information.

Written Testing

Skills Tests: Measure ability to apply a particular knowledge set

Personality Tests: Measure psychological traits or characteristics to determine suitability for a specific job

Interest Tests: Measure intellectual curiosity and motivation in a particular field

Cognitive Ability Tests: Assess intelligence or aptitude for a particular job

Honesty/Integrity Tests: Can be written or use a polygraph

Physical Testing

Physical Testing: To ensure applicants are capable of performing jobs as defined by job specifications and descriptions.

Physical Skills Tests

Work samples

Assessment centers

Simulations

Physical Testing

Physical Exams: Should be directly related to job functions

Drug Testing: For workplace safety and productivity; must be either “random” or “universal”

Fitness-for -Duty Testing: Test whether an employee is physically capable at a particular point in time of performing a specific type of work

Selection Interviews

Interviews are generally the most heavily weighted and one of the last steps.

Allow candidates to learn about the job and organization

Allow managers to assess factors about a candidate that cannot be obtained from other tests and to check accuracy of the application/résumé

Exhibit 6-4: Types of Interviews and Questions

Exhibit 6-4: Types of Interviews and Questions: Common Interview Questions (Selected)

How would you describe yourself?

What do you consider to be your greatest strengths and weaknesses?

What would your last boss say about your work performance?

What motivates you to go the extra mile on a project or job?

What skills do you have?

What makes you qualified for this position?

How do you work under pressure?

What can you tell us about our company?

What do you see yourself doing 5 years from now?

Types of Interviews

Structured Interview

Candidates are asked the same questions.

Semi-Structured Interview

Interviewer follows list of questions, but also asks unplanned questions.

Unstructured Interview

Interviewer has no preplanned questions or sequence of topics.

The most susceptible to discrimination claims because it introduces the most interviewer bias.

Types of Questions

Closed-Ended: Requires a limited response (e.g., yes/no); appropriate for fixed aspects of the job

Open-Ended: Requires a detailed response; appropriate for determining abilities and motivation

Hypothetical: Requires candidates to describe what they’d do and say in a given situation; appropriate in assessing capabilities

Probing: Requests clarification; appropriate for improving interviewer’s understanding

Model 6-1: Interview Preparation Steps

Model 6-2: Interviewing Steps

Background Checks

Prevent negligent hiring

Types

Credit checks

Criminal background checks

Reference checks

Web searches

Selecting the Candidate and Offering the Job

Multiple-Hurdle Selection Model

Requires applicants pass a selection test to go to the next test.

Cost-effective because unqualified applicants stop taking further tests.

Compensatory Selection Model

Allows applicants to perform poorly on one test, but make up for that poor score by doing well on other tests or interviews.

Hiring

Compare candidates’ qualifications and consider diversity

Identify if candidates truly desire the job and are honest

Assess person–organization fit via coworkers’ impressions

Contact the best candidate and offer the job

If candidate refuses or accepts but soon leaves, offer job to next-best candidate

Trends and Issues in HRM

HR has to be careful not to violate any laws when recruiting and selecting anyone locally, nationally, or internationally.

Human Resource Information Systems (HRIS) become increasingly valuable to the organization in all HRM functions.