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5Selection, Placement, and Job Fit

Learning Outcomes After reading this chapter, you should be able to do the following:

• Recognize the benefits and risks associated with effective or ineffective employee selection.

• Identify a wide range of criteria that employers use to select the right employees.

• List, describe, and assess commonly used employee selection tools.

• Apply the concepts of validity and reliability to various selection methods.

• Describe the laws and regulations governing employee selection.

• Identify emerging trends, opportunities, and challenges in selection.

Rawpixel Ltd/iStock/Thinkstock

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Introduction

Introduction Selecting the right employees is one of the most crucial HR processes, but it is also one of the most challenging decision-making processes in an organization. An effective selection pro- cess should help the organization choose from a group of applicants: those who fit certain jobs and also fit the organizational culture. Failing to hire the right people will negatively impact performance, quality, and productivity, while increasing the turnover rate. It can also lead to litigation and compromise the organization’s reputation if the selection process is dis- criminatory. The cost of a wrong hire has been estimated to be 1.5 to 5 times the annual cost of the employee (Muller & Baum, 2011).

On the other hand, choosing the right people will enable the organization to compete more effectively and attain its goals and objectives. Selecting the right candidate for the job and the organization is critical to create a human-based competitive advantage because many organi- zations may have ready access to the same applicant pool and information, especially now that most recruitment efforts are mediated through technology. Figure 5.1 summarizes the selection process as a component of strategic human resource management and outlines the topics discussed in this chapter.

Opening Case Study First Data is Hiring . . . Big Time!

Access the following links:

https://www.firstdata.com/en_us/about-first-data.html

https://www.firstdata.com/en_us/about-first-data/careers-home/search.html?datePosted =all&page=1&req=&jobTitle=

First Data is one of the first and largest payment processing companies in the world, with operations in over 70 countries, and millions of clients worldwide. Hiring is an ongoing pro- cess at First Data. As the second link above demonstrates, at any point in time, there could be over 1,000 job openings at First Data. Hiring 1,000 new employees is not an easy task. HR professionals and hiring managers need to spend many hours weeding through hundreds, sometimes thousands of resumes and application forms, verifying qualifications, interviewing applicants, conducting assessments, and negotiating job offers.

Selecting the wrong candidate for the job can be detrimental to subsequent performance and morale. If the employee leaves, the hiring cycle has to be repeated to find a replacement, which is often time consuming and disruptive to operations. First Data is also known for its very high standards of performance, professionalism, and job fit, as well as frequent layoffs and reorga- nization to maintain competitiveness, innovation, and responsiveness to fast-changing market needs. Whether the wrong fit results in turnover or a layoff, selection mistakes can be costly and time consuming. That is why it is critical to have the right selection criteria, and to follow a systematic approach in finding the right candidate that best fits each job opening. In many respects, selection resembles a marriage. The more diligent both sides are in learning about each other and considering their unique characteristics before they commit, the more likely the relationship is to thrive, and the more headaches can be spared later.

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https://www.firstdata.com/en_us/about-first-data.html

https://www.firstdata.com/en_us/about-first-data/careers-home/search.html?datePosted=all&page=1&req=&jobTitle=

Achieving organizational

& job fit

Choosing selection tools &

procedures

Enhancing employee

motivation, productivity,

and retention

Assessing validity & reliability

Ensuring legal

compliance

Determining selection criteria

Strategic HR planning

Job analysis and job design

Attraction and recruitment of

talent

Selection and job fit

Performance appraisal/

management

Training and development

Compensation

Benefits and benefit

administration

Introduction

HR seldom makes any hiring decisions within an organization. The final decision regarding who to hire is often made by the hiring manager. The role of HR is to act as a consultant, advi- sor, facilitator, and coordinator in the hiring process in order to ensure that it is conducted

Figure 5.1: Selection and job fit

Achieving organizational

& job fit

Choosing selection tools &

procedures

Enhancing employee

motivation, productivity,

and retention

Assessing validity & reliability

Ensuring legal

compliance

Determining selection criteria

Strategic HR planning

Job analysis and job design

Attraction and recruitment of

talent

Selection and job fit

Performance appraisal/

management

Training and development

Compensation

Benefits and benefit

administration

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Section 5.1 What Should You Select For?

objectively and legally across the organization. In some cases, following a structured process that is governed by many administrative policies and procedures may appear to the hiring managers to be tedious and unnecessary, especially when there is an immediate opening to be filled, and a good candidate who is prepared to fill it. However, as you will learn in this chapter, a formal and valid selection process yields solid evidence about an applicant’s char- acter, credibility, competence, motivation, and cultural fit, which can lead to a better hire and spare the organization unnecessary time, resources, and legal and reputational costs (Muller & Baum, 2011).

5.1 What Should You Select For? Many employers have the unrealistic expectation that an ideal candidate can be found to fill the job if the organization uses the right recruitment tools and then offers the candidate a package that he or she cannot refuse. However, this is rarely the case. Instead, an organization first needs to determine the specific factors that are critical for success in the job in question, and then direct its recruitment and selection efforts accordingly. Applicants can then be eval- uated based on those factors, and those who rank highest on these factors should be selected. This section describes some of the most important factors that organizations consider in employee selection.

1. Individual Differences Individual differences refer to a wide range of personal traits that tend to be stable over time and across situations. These traits can be genetically deter- mined. They can also be “hardwired” in the brain at an early age through the influences of cultural background, upbringing, early childhood and ado- lescence experiences, or a combination thereof. The following are examples of such stable traits:

• General mental abilities (GMA) or, simply, raw intelligence as measured by recognized intelligence quotient (IQ) tests (Schmidt, 2009)

• The Big Five personality traits of conscientiousness, extroversion, agreeableness, emotional stability, and openness to experience (Barrick & Mount, 1991)

• The core self-evaluations of self-esteem, generalized confidence, neuroticism (the opposite of emotional stability), and locus of control (Judge & Bono, 2001)

• Character strengths and virtues, which have also been identified in the emerging field of positive psychology (Peterson & Seligman, 2004)

Individual differences are important for employee selection because they can contribute to or limit one’s potential for growth and development. Because they are stable in adults, indi- vidual differences are extremely difficult if not impossible to change through HR initiatives

Noel Hendrickson/Photodisc/Thinkstock

The best candidate for a job should be chosen based on a set of factors specific to the job in question.

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Section 5.1 What Should You Select For?

such as training and motivation. Thus, organizations need to determine the traits that are critical for success in various positions and then ensure that they select employees who pos- sess those traits. For example, extroversion is supported as a critical success factor for sales jobs. However, since extroversion is an individual difference, it is difficult to increase some- one’s level of extroversion. Therefore, an organization should hire extroverted individuals to fill sales jobs, because it cannot effectively turn introverted employees into more extroverted ones through training, rewards, or other approaches.

Job analysis and job design (discussed in Chapter 3) can contribute to accurately determining the right traits for each position. To determine the extent to which applicants possess these desired traits, HR uses various individual differences measurement tools. Most of these tools are based on what is called individual differences psychology or differential psychology, which mainly focuses on analyzing and interpreting the behavioral tendencies that distinguish one individual from another by recognized traits. Personality tests are the most commonly used individual differences assessments.

Examples of well-researched personality tests are the Big Five personality test and the Core Self Evaluations inventory. Unfortunately, these are not the most commonly used tests. Instead, many organizations design their own tests or purchase commercially available assessments, which may or may not be backed up by sufficient research. For example, many organizations use the Myers-Briggs Type Inventory (MBTI). This assessment tool has its proper uses. However, its effectiveness, and thus the legality of its use for selection purposes, is questionable. Many assessments are also costly to buy and administer, further highlighting the importance of selecting the most effective selection tools—a topic that will be revisited later in this chapter.

2. Human Capital: Knowledge, Skills, Abilities, and Other Variables (KSAOs)

Job applicants also vary in education, experience, prior training, and physical, mental, and emotional abilities. These factors are not necessarily based on individual differences but can be determined by applicants’ current achievements. Although KSAOs are not stable personal- ity traits, developing them can be costly and time consuming. Many organizations, therefore,

Web Links The Big Five Personality Test http://www.outofservice.com/bigfive/

Follow this link to learn more about the Big Five personality traits and complete a personality assessment.

http://timothy-judge.com/CSES.htm Follow this link to view the core self-evaluations inventory.

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http://www.outofservice.com/bigfive/

http://timothy-judge.com/CSES.htm

Section 5.1 What Should You Select For?

require some level of the necessary KSAOs as qualifications for each job. Numerous studies show that human capital is strongly related to firm perfor- mance (Crook, Todd, Combs, Woehr, & Ketchen, 2011).

For a particular job, the organization must first determine the KSAOs required to perform the job’s tasks and respon- sibilities. This determination usually takes place at the stages of job analy- sis and job design. Then the organiza- tion needs to employ valid and reliable assessment techniques to accurately measure the extent to which job appli- cants possess the desired KSAOs. The following are examples of assessments for various fields:

• Licensure exams assess knowledge for fields such as medicine and engineering. • Law certification exams assess skills such as those often completed by teachers,

electricians, plumbers, and other technicians. • Physical fitness tests assess physical ability, such as the ability to lift a certain

amount of weight or stand for a given period of time.

3. Social Capital Social capital is the value added through interpersonal relationships, interactions, and net- working (Adler & Kwon, 2002; Luthans & Youssef, 2004). In an organizational context, social capital emphasizes building a positive organizational culture in order to achieve the orga- nization’s ultimate goals and objectives. HR practices that build social capital include the following:

• Selecting job applicants with strong industry and community connections to whom they can promote the organization and from whom they can bring new business

• Selecting qualified employees and placing them in jobs that fit their qualifications • Using motivational tools and reward systems • Promoting a positive work environment and an organizational culture that focuses

on collaborative work practices such as team-based organizational design, mentor- ing, coaching, employee participation, and empowerment

For example, many contracting jobs favor candidates who have established connections with potential clients. Candidates who possess social capital also find it easier to locate and land job offers than those who lack these connections. Despite its importance, social capital tends to be subjective, vaguely defined, or defined differently from organization to organization. These factors make social capital difficult to measure and therefore difficult to leverage for HR selection purposes. Nevertheless, social capital has been shown

Thinkstock Images/Stockbyte/Thinkstock

Knowledge and skill assessments can include certification exams such as those completed by teachers, medical technicians, and electricians.

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Section 5.1 What Should You Select For?

to be related to success, especially in small entrepreneurial firms (Stam, Arzlanian, & Elfring, 2014).

4. Positive Psychological Capital Employees’ psychological states have a direct impact on shaping the organizational culture and environment. Unlike traits, psychological states are cognitive, affective, and social capabilities that are open to growth, development, and change over time and across situa- tions. Recognized as being particularly relevant for the workplace is positive psychological capital, a multidimensional concept that encompasses four psychological resources:

• Confidence (self-efficacy): The ability to take on challenging tasks and make the efforts necessary to accomplish them successfully

• Optimism: Attributing positive reasons and causes to present events and future success

• Hope: Persevering toward goals and redirecting paths as necessary • Resilience: Bouncing back from adversity (Luthans, Youssef-Morgan, & Avolio, 2015)

Psychological capital has been shown to positively relate to many desirable employee atti- tudes, behaviors, and performance (Avey, Reichard, Luthans, & Mhatre, 2011), which in turn can translate into human-based competitive advantages. Similar to KSAOs, psychological cap- ital can be trained and developed. However, organizations may also want to select applicants based on their psychological capital if there is CMS 5.131 limited time or resources to develop employees, or if the organization is seeking to make the culture more positive.

For example, Seligman (1998) conducted a fascinating set of studies on the sales force of Metropolitan Life Insurance. At the time, the company was basing selection decisions on the results of an industry-recognized test that measured applicants’ technical knowledge. How- ever, Seligman believed that being a successful salesperson requires high levels of positivity, and he suggested that positivity might be even more important than technical skills. To test this notion, Seligman convinced Metropolitan Life to hire a “special force” of applicants who actually failed the industry test, but who scored highly on a test that he had designed to mea- sure optimism, a recognized dimension of positivity. Interestingly, optimists who failed the industry test outperformed pessimists who passed it, indicating that positivity may be more important to job performance than skills!

Other positive psychological resources that are being explored as potential additions to psy- chological capital include creativity, courage, mindfulness, flow, authenticity, spirituality, emo- tional intelligence, gratitude, and forgiveness. Because these resources are showing promise in terms of job performance and many other desirable outcomes in the workplace such as satisfaction, commitment, and health and well-being, managers are starting to pay attention to these capabilities when selecting future employees (Luthans et al., 2015).

5. Attitudes Employees’ attitudes towards their jobs, their coworkers, and the organization can shape their behavior, performance, and success in their jobs. Employees with positive attitudes have a more constructive influence on the success and fulfillment of organizational goals and objectives than employees who have more education and experience but also have a negative

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Section 5.2 Job Fit

attitude (Sartain, 2003). A positive attitude can manifest through a high energy level and enthusiasm, passion for learning, curiosity to explore and experiment, motivation to succeed, and desire to do what is good for the organization.

Attitudes are difficult to change because they are affected by a myriad of factors that may be beyond the organization’s control, such as satisfaction with other life domains (Judge & Ilies, 2004). Although attitudes are not considered fixed traits or individual differences, many organizations will nevertheless select an applicant with the “right” attitudes that fit the orga- nization’s goals, culture, and job requirements, instead of attempting to develop these atti- tudes in those who may lack them. Organizations use many tools to assess attitudes such as job satisfaction, work engagement, and organizational commitment in potential and current employees (Harter, Schmidt, & Hayes, 2002). Surveys are the most commonly used attitude assessments. However, many of the available attitude assessments must be administered carefully, with special measures, since applicants can fake attitudes to gain jobs or to profess socially desirable traits (Mueller-Hanson, Heggestad, & Thornton, 2003).

For example, many organizations regularly administer “climate surveys,” asking employees to report on their satisfaction with their jobs, supervisors, and coworkers, and their intentions of staying with the organization. However, many employees would be reluctant to respond truth- fully (or at all) to those surveys unless anonymity is guaranteed. Examples of well-designed atti- tude assessments are Allen and Meyer’s (1990) Organizational Commitment Scale and Gallup’s Q12 scale for measuring work engagement (Harter et al., 2002). Gallup’s scale has been found to be an effective measure, but its costs should be considered, since it is also proprietary.

Prioritizing Selection Criteria The goal of the selection process is to identify the best candidates who possess the most influential qualities a job requires and who fit the organizational culture well. These qualities include a combination of critical KSAOs; appropriate experience and education; and personal characteristics, traits, and attitudes. However, assessing too many criteria can be costly and time consuming. It may also result in too few qualified applicants and unfilled positions. On the other hand, assessing too few criteria can yield too many qualified applicants to screen and select from, which can also be costly and time consuming. This information overload can also result in subjective, legally questionable decisions.

Thus, it is wise for an organization to prioritize its selection criteria based on the results of its HR planning, job analysis, and job design. A recruiting team is often assembled to contrib- ute to the prioritization, including HR representatives, the hiring manager, successful future coworkers, direct reports, and internal and sometimes even external customers. Employee selection is a balancing act and a process of optimizing across multiple criteria, rather than maximizing one criterion at the expense of others.

5.2 Job Fit Hiring the best candidates is important, yet compatibility between a candidate, the organiza- tion, and the position is critical for the candidate to be successful, and for the organization to be able to leverage the candidate’s talent to achieve its goals and objectives. Thus, while it is necessary to use the criteria described in Section 5.1 to select a candidate, it is insufficient to

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Section 5.2 Job Fit

consider these criteria alone. It also important to optimize the match between the character- istics of candidate, the organization, and the job.

Person-Organization Fit It is very important for organizations to recruit qualified individuals with the optimum skill sets matching the organizational goals and objectives (Chuang & Sackett, 2005). To attract and retain these qualified individuals, companies must match an applicant’s characteristics with the organizational environment or culture and then maintain that match during the term of employment.

Person-organization fit can be defined as the extent of resemblance between the personal core values and beliefs of individuals and the norms, rules, regu- lations, and values of the organizations where they work. Studies show that employees are mentally and physically more sound when they are comfort- able with the organizational environ- ment. A strong employee-organization fit has been demonstrated to relate to increased performance, job satisfac- tion, and organizational commitment, as well as decreased strain and inten- tion to quit (Kristof-Brown, Zimmer- man, & Johnson, 2005). Person-orga- nization fit is therefore an important selection consideration. For example, an individual who is willing to take risks would find an organization that values creativity and innovation to be a good fit, while an individual who prefers stability and structure would find an organizational culture that emphasizes predictability to be a better fit. Similarly, an extroverted individual will be more likely to fit in an organizational culture that emphasizes teamwork and collaboration, while an introvert would be a better fit with an organization that values individual achievements.

Person-Job Fit It is also significant for companies to establish and promote a robust fit between an employee and a job. According to Edwards (2008), person-job fit occurs when the demands of the job are compatible with the capabilities of the incumbent and when the needs and prefer- ences of the incumbent are met by the job. Recruits come to organizations with different combinations of KSAOs. It is the organization’s responsibility to match those KSAOs with the job needs, requirements, and necessary qualifications. This match ensures that all the duties, responsibilities, and tasks associated with the job will be accurately and efficiently accomplished.

From an employee’s perspective, a job is deemed satisfactory when it lives up to his or her expectations, fulfills most of his or her professional needs, and balances them with personal

Cathy Yeulet/Hemera/ThinkStock

The selection process should take into account a candidate’s ability to fit in with organizational culture, as well as his or her skills and abilities.

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Section 5.3 Selection Methods

life. Employees are believed to pursue and accept job offers much less in accordance with objective evaluations than with subjective evaluations and personal perceptions of whether or not a job fits them well (Caplan, 1987). Person-job fit, like person-organization fit, has also been shown to relate to a number of desirable work attitudes, behaviors, and perfor- mance outcomes. Person-job fit is therefore critical for effective selection (Kristof-Brown et al., 2005).

5.3 Selection Methods Common selection methods organizations use to gain information about and narrow down potential candidates are resumes and application forms, testing, interviews, reference checks, honesty tests, medical exams, and drug screening.

1. Resumes and Application Forms Job applications and resumes are the organization’s initial method of collecting information about potential recruits. A major downside of resumes and job applications is the consider- able and unmanageable volume of them that HR departments receive. In most cases, it is extremely challenging to control or carefully consider all these documents. Application forms assist in gathering basic information about applicants that can be grouped into four main cat- egories: contact information, work experience, educational background, as well as the appli- cant’s signature validating all the information indicated in the application form.

Resumes, on the other hand, are controlled by the applicants rather than the employers, which introduces a source of bias and inaccuracy not present in application forms. However, resumes provide an economical method for collecting initial information, identifying poten- tial hires with the basic requirements such as job experience and educational background, as well as selecting applicants for further consideration. Although sometimes misleading, resumes provide applicants more freedom in expressing themselves and highlighting per- sonal experiences that structured application forms may not permit.

2. Testing The next logical step after candidates have been initially screened through resumes and job applications is to test those applicants in order to further screen and narrow down the choice to a few top candidates. This is the main objective of conducting such tests. In broad terms, there are two main types of tests that organizations employ: aptitude tests and achievement tests.

Aptitude refers to how quickly or easily one will be able to learn in the future (Carter, 2007). Aptitude tests evaluate the test taker’s level of reception, comprehension, and retention. The most prominent aptitude test is called the General Aptitude Test Battery (GATB). Achievement tests, on the other hand, determine the individual’s current KSAOs. In other words, achieve- ment tests are qualification examinations to ensure that applicants are ready to perform the tasks they are recruited for.

Organizations can use many other forms of tests, depending on the type of job involved. For example, physical ability tests are conducted only for jobs demanding certain physical job

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Section 5.3 Selection Methods

performance requirements, for the purpose of mitigating injuries related to certain job activi- ties (Buffardi, Fleishman, Morath, & McCarthy, 2000; Hogan, 1991).

The cognitive ability test, also referred to as the intelligence test, is primarily designed to assess the applicant’s mental abilities. Such tests are particularly relevant for complicated jobs demanding considerable mental capabilities (Salagado, Anderson, Moscoso, Bertuas, & De Fruyt, 2003; Ree, Earles, & Teachout, 1994). Job performance tests, also commonly referred to as work sample tests, are also used by organizations for specialized types of jobs demand- ing continuously high productivity and performance, such as keyboarding or high-volume machine operation. Job performance tests are mostly conducted through simulations of the actual work setting (Winkler, 2006).

3. Interviews Many employers prefer to directly inter- act with their future employees, usually face to face, for a more accurate evalua- tion of their communication skills, inter- personal skills, and technical experience and knowledge. That is why the job inter- view is one of the most commonly used selection tools in employment. There are several types of interviews that organiza- tions use. These types of interviews are listed and described below. Examples of each type of interview and tips for suc- cessfully conducting them (as an inter- viewer) or doing well at them (as an interviewee) are provided in the links that follow.

• Unstructured interviews mostly involve open-ended questions. The interviewee’s answer to one question determines the interviewer’s progres- sion to the next question. Questions are often related to personal career objectives and expectations, as well as points of strength and weakness. A major problem with unstructured interviews is their inability to stand up to scrutiny from the standards of the Uniform Guidelines on Employee Selection Procedures if challenged in court. The Uniformed Guidelines were established to aid hiring agencies in complying with Federal laws regulating employment practices (Biddle Consulting Group, 2015). A review of Federal Court cases between 1978 and 1997 involving charges of discrimi- natory hiring demonstrated that unstructured interviews were challenged in court more often than any other selection device and in 41% of the cases the unstructured interview was found to be discriminatory in nature (Terpstra, Mohamed, & Kethley, 1999).

• Structured interviews follow a set of pre-established questions that mainly focus on the interviewee’s knowledge, work experience, and technical skills. Structured interviews provide organizations with more valid and reliable results compared to unstructured interviews.

RubberBall/RubberBall/Superstock

Job interviews are one of the most commonly used hiring tools, and they come in many shapes and sizes.

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Section 5.3 Selection Methods

• Situational interviews depict a real work-related scenario that interviewers present to the interviewees to evaluate their problem-solving capabilities (Clavenger, Per- reira, Weichmann, Schmitt, & Harvey, 2001; McDaniel, Morgeson, Finnegan, Cam- pion, & Braverman, 2001).

• Behavior description interviews allow the interviewees to describe how they handled a certain past situation to assess their experiences (Campion, Campion, & Hudson, 1994; Pulakos & Schmitt, 1995).

• In panel interviews, two or more representatives from the organization meet in a group setting with the interviewee. This type of interview has the advantage of using multiple raters; hence, it is less biased.

4. Reference Checks Application forms often ask applicants to provide reliable reference sources, such as former employers, so that organizations can verify applicants’ capabilities and past experiences. In real- ity, however, references are not a very reliable source for verifying information since applicants are careful to choose only references that are most likely to present them in a favorable light.

Providing references for former employees can be risky for employers due to possible law- suits. For example, positive references can trigger lawsuits when new employers claim they have been misled if an employee’s conduct has not been as expected after a certain period of employment (Long, 1997). On the other hand, negative references can cause former employees

Web Links Structured, unstructured, and semi-structured interviews

http://www.youtube.com/watch?v=nrDONsoVoXE&feature=related

Situational interviews https://www.youtube.com/watch?v=FQHneHS7P_Q

Behavioral interviews https://www.youtube.com/watch?v=qKBubKO-798

Panel interviews http://www.youtube.com/watch?v=eX4ofZoN6Zw

Discussion Questions 1. Which of the above types of interviews have you encountered in the past? Describe the

nature of the job, the characteristics of the interviewer(s) and the interviewee, the set- ting, and the flow of the interview.

2. As an interviewer, which type of interview are you most and least comfortable with? Why? 3. As an interviewee, which type of interview are you most and least comfortable with? Why? 4. Select jobs that may best lend themselves to each type of interview. Explain your

opinions.

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http://www.youtube.com/watch?v=nrDONsoVoXE&feature=related

https://www.youtube.com/watch?v=FQHneHS7P_Q

https://www.youtube.com/watch?v=qKBubKO-798

http://www.youtube.com/watch?v=eX4ofZoN6Zw

Section 5.4 Foundational Concepts in Designing and Evaluating Selection Methods

to claim defamation and loss of reputation, even with limited evidence (Ryan & Lasek, 1991). For these reasons, organizations should be cautious in providing former employees with ref- erences, carefully focusing only on job-related experience and behavior rather than treading into personal opinions that might be misinterpreted. However, such references may leave organizations with narrower descriptions of applicants’ past performances, which under- mines the purpose of their seeking out references in the first place.

5. Honesty Tests, Medical Exams, and Drug Screening Some jobs involve physically demanding tasks and responsibilities. Accordingly, many orga- nizations conduct medical and fitness examinations to ensure that employees are capable of successfully performing the assigned job requirements. Another purpose of these tests is to determine applicants’ initial physical status, prior to employment, for future evaluation in case of a work-related injury or disability. Organizations must practice extreme caution in using physical examinations for potential recruits to avoid any discriminatory claims.

Employees are also expected to maintain acceptable levels of honesty and integrity inside and outside the organization. Although reference checks and interviews can assess honest behavior, some organizations rely on more direct verification methods, such as honesty tests. Honesty tests using the polygraph were banned in 1988 and replaced with written integrity tests that, although not as effective, have some ability to highlight negative behavioral issues (Bernardin & Cooke, 1993; Ones, Viswesvaran, & Schmidt, 1993). However, research supports the validity of these tests (Van Iddekinge, Roth, Raymark, & Odle-Dusseau, 2012).

Furthermore, employees are expected to not to engage in unsafe behaviors such as the use of illegal drugs or the abuse of controlled substances. Alcohol and drug screening is an accu- rate and reliable method for exposing substance abuse. However, many individuals see alco- hol and drug screening as a controversial privacy invasion that can lead to false accusations of substance abuse. Some organizations avoid these problems by relying on other types of testing, such as impairment and fitness tests for duty programs, which mainly assess mental abilities in carrying out critical tasks rather than analyzing the root cause of impairment.

5.4 Foundational Concepts in Designing and Evaluating Selection Methods

The goal of the selection process is to accurately and consistently predict future job perfor- mance through assessing a predetermined set of factors that are believed to be related to applicants’ ability or motivation to perform the job. For example, organizations often hire applicants with the highest scores on a particular test, or those who received the most favor- able ratings on an interview. The underlying assumption and rationale for this common approach is that test scores or interview ratings are accurate and consistent predictors of subsequent job performance.

However, job performance can never be predicted with 100% accuracy or consistency. The only way to reach perfect accuracy would be for employers to hire all the applicants for a particular job, have them perform the job, and then choose those with the highest perfor- mance. Of course this approach is neither practical nor cost effective. Moreover, even if an

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Section 5.4 Foundational Concepts in Designing and Evaluating Selection Methods

organization can afford to hire a large number of applicants and retain those with the high- est performance, performance prediction is still not perfectly accurate. For example, many organizations have probationary periods in which the employer and the employee “try each other out” before a more permanent arrangement is established. However, employees may be motivated to perform at a much higher level during the probationary period in order to secure permanent employment. Once the probationary period is over, the employee’s perfor- mance level may drop. Moreover, even if overall job performance can be predicted accurately, performance may be influenced over time and across situations by a myriad of factors that cannot be anticipated or managed. This variation renders consistency in performance predic- tion a serious challenge in candidate selection.

It is impossible to make perfect predictions of job performance. However, there are many recognized selection tools and methods that can make reasonably high-quality predictions possible by accurately and consistently measuring or assessing important predictors that are strongly related to specific job performance criteria. Accurate prediction of perfor- mance criteria is also referred to as high validity. It indicates that a predictor (e.g., test scores or interview ratings) is significantly related to desirable performance outcomes, so that those who measure favorably on the selection tool or method have a higher chance of being high performers than those who do not. For example, if a valid test is used in the selection process, then those who score higher on the test are also likely to perform better on the job.

Consistency, also referred to as high reliability, indicates that a predictor can be replicated over time and across situations. For example, a reliable selection procedure will reflect an applicant’s aptitude, ability, and motivation to do the job. The procedure will not reflect the subjective opinion of the interviewer, the temperature or noise level of the room where an employment test took place, or other factors that are not related to the actual job (factors that, if different, could have yielded a different score or decision as to whether or not the organization should select the applicant).

Validity Validity is the extent to which a selection tool or procedure can accurately predict subse- quent performance. Validity is an extremely important factor to consider when designing or evaluating selection methods. There are several reasons:

1. The more accurate the testing process is, the more likely it is that the best candi- dates will be selected, promoted, or matched with the right jobs.

2. Invalid or unreliable tests can be costly. Many tests need to be purchased or a license of use must be obtained. Moreover, testing is time consuming for both the candidate and for the organization. Tests must be administered and rated, and the results must be reported—processes that require managers’ and HR professionals’ time and energy.

3. The wrong tests carry such opportunity costs as wasted time and the lower productivity of the employees hired or promoted because of their invalid test results.

4. Finally, invalid testing has legal implications. An invalid test may not be related to performance, but it may still be discriminatory by favoring certain protected classes

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Section 5.4 Foundational Concepts in Designing and Evaluating Selection Methods

over others. For example, younger job applicants may consistently score higher than older applicants on a test, and these scores may not be related to job performance. In such a case, that test may be found to be discriminatory. While the organization may have had no intent to discriminate, the use of invalid, discriminatory tests can result in what is referred to later in this chapter as disparate impact, which is also illegal. Other legal considerations will be discussed in greater detail later in the chapter.

Furthermore, when designing or evaluating selection methods, several dimensions of validity should be taken into account (Robinson, 1981; Schmitt, Gooding, Noe, & Kirsch, 1984). Five validity dimensions are multiple fac- ets of the same concept and should be considered in conjunction, rather than individually:

1. Criterion-related validity 2. Content-related validity 3. Construct validity 4. Face validity 5. External validity

First, criterion-related validity is the predictive, empirical (number-based) link between a predictor and an actual mea- sure of job performance. Statistically, it is the correlation between applicants’ scores on the predictor and their subse- quent job performance scores. This correlation ranges from 0 to ±1.00. Tests that yield valid- ity coefficients ranging from ±.35 to ±.45 are considered useful for employment decisions, while tests with validity coefficients of less than ±.10 probably have little relationship with job performance.

For example, there are numerous valid measures of individual differences; of human, social, and psychological capital; and of the job attitudes discussed earlier. Organizations should make sure only valid measures are used for selection purposes. For the reasons listed above, “interesting” personal or interpersonal characteristics should not be considered if they can- not be validly related to job performance. They are costly, time consuming, and distracting, and they can be found discriminatory.

Criterion-related validity is established through building a track record for a selection tool. For example, current employees can be assessed using the selection tool in question, and their current performance can then be correlated to their scores on the selection tool. If the correlations are sufficiently high and statistically significant, then the tool can be used for selection. This correlation is referred to as concurrent validity. Alternatively, a new or experi- mental selection tool can initially be administered to applicants but not be considered for selection. Selected applicants’ performances can then subsequently be measured and cor- related to their initial scores on the selection tool. If the correlation is sufficiently high and statistically significant, then the selection tool can become incorporated into the selection

AP Images/Ric Francis

The more accurate the testing process, the more likely it is that the best candidates will be selected.

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Section 5.4 Foundational Concepts in Designing and Evaluating Selection Methods

process and scores can be taken into consideration for selection decisions. This correlation is referred to as predictive validity.

Second, content-related validity is the logical connection between the selection procedure and the actual job. For example, interview or test questions should be directly related to the important requirements for and qualifications of a job—the rationale being that if an inter- view or test samples actual job behaviors, then individuals who perform well on the inter- view or test will also be able to perform well on the job. Content-related validation studies rely heavily upon information gathered in job analysis. If test questions are directly related to the specific skills needed to perform a job, then the test will have high content-related validity.

Third, construct validity is the extent to which a selection tool accurately reflects the abstract personal attributes, or constructs, that a tool intends to measure. For example, while there are valid measures of many personality traits, numerous invalid measures of the same traits can be found in magazines or on the Web. Invalid measures are sometimes even sold to organiza- tions by consultants. Creators of those measures claim that they are beneficial, and the mea- sures seem to make sense on the surface and to ask the right questions, but they should not be used for employment selection purposes because their predictive power is questionable.

Fourth, face validity is related to content and construct validity. Face validity is not a form of validity in a technical sense. It refers to applicants’, organizations’, or observers’ subjec- tive impressions of how relevant a predictor is to a job. For example, a bank teller would find nothing strange about taking an employment test that dealt with numerical ability or money counting skills because these skills are obviously related to job performance. On the other hand, the teller applicant may not see the job relevance of a personality test. This test would, thus, have low face validity for this job. While it can be irrelevant in a scientific sense, organizations should still pay close attention to the face validity of their selection procedures, since low face validity can result in poor perceptions of the organization. If an organization has a choice between multiple tools that are otherwise equally valid, the tool with higher face validity should be used.

Finally, external validity refers to the generalizability of a selection tool or procedure. For example, an interview protocol or employment test may be more valid in some job positions, departments, organizations, industries, regions, or countries, than it is in others. Thus, pre- dictors of performance need to be “revalidated” if the context in which they will be used is suf- ficiently different. On the other hand, if there are significant situational similarities, then the predictive capacity of a selection process can be generalized. For example, many industries rely on having passed recognized licensing exams or obtained certifications to deem their applicants qualified for technical jobs within those industries.

Reliability Reliability is the extent to which it is possible to replicate the results from a predictor such as a selection tool, method, or procedure. For example, a reliable interview protocol should yield the same conclusion about the same applicant, regardless of such irrelevant factors as these:

• Which interviewer was the applicant assigned to? If some interviewers are more lenient, or if the interview protocol allows for subjective evaluations, then the inter- view protocol is unreliable.

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Section 5.5 Increasing the Validity and Reliability of the Selection Process

• In which room did the interview take place? If some rooms are known to be more comfortable or conducive to higher-quality interactions than others, then all inter- views should be scheduled in the same (or in a comparable) room to increase reliability.

• What time of the day did the interview take place? If interviewers get more tired toward the end of the day, this time may bias their evaluations of the applicants interviewed at that time.

• What was the sequence of applicants? Interviewers may become more lenient or more stringent over time. For example, an average applicant may be at a significant advan- tage if interviewed after a number of mediocre applicants, but may be at a significant disadvantage if interviewed immediately after an exceptionally good applicant.

• Was the applicant in his or her normal state of being? If an applicant is interviewed while he or she is ill, exhausted, agitated, anxious, or frightened, the results are likely to be unreliable.

In other words, reliability is a reflection of the degree of error in a measurement, which also conveys the stability of that measurement’s outcomes (Nunnally, 1994). Typically, assessing reliability involves gathering scores for a particular predictor twice, then calculating the correlation between the two sets of scores. This correlation is referred to as the reliability coefficient, and it ranges from 0 to +1.00. The closer the score sets approach a perfect +1.00 correlation, the more reliable the predictor is said to be. For selection purposes, the two sets of scores can come from scoring the same group of applicants or current employees twice on the same procedure, while varying certain factors. For example, a test can be administered at two different times, or an interview can be conducted twice using different interviewers, and the scores can then be correlated to assess reliability. These approaches are respectively referred to as test-retest reliability and inter-rater reliability.

5.5 Increasing the Validity and Reliability of the Selection Process

Selecting candidates for employment entails the use of valid and reliable methodologies for the selection process, ensuring that selected applicants fit the jobs they have been selected for and fit the general organizational culture. Many organizations continually look for ways to improve their methodologies, including creating and using more valid and reliable methods, instituting better training, and linking selection to the HRM process.

Web Link Valid and Reliable Psychological Assessments

www.mindgarden.com

This Web site provides validity and reliability information on a number of assessments suited for evaluating various personality traits and developmental characteristics, many of which are well suited to the workplace. The site also provides contact information to obtain permission to use various tools and measures, many of which are free of charge.

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www.mindgarden.com

Section 5.5 Increasing the Validity and Reliability of the Selection Process

1. Better by Design: Creating and Using More Valid and Reliable Methods

Selection tools vary in their validity and reliability. For example, resumes may be more valid than application forms because resumes allow applicants to expand on their job-relevant qualifica- tions, which may be more predictive of job performance than the many unre- lated pieces of information on generic job applications. On the other hand, application forms may be more reliable because their structured format makes it harder for applicants or employers to overlook or intentionally omit relevant information. This reliability is one rea-

son many organizations require applicants to submit a resume and also complete an applica- tion form.

Similarly, unstructured interviews may be valid since they allow the interviewee to elaborate on their unique capabilities and experiences. However, unstructured interviews are less reli- able than structured interviews, especially in inter-rater reliability, since each interview may vary on the topics covered, the questions addressed, and thus the conclusions that interview- ers may reach about each applicant. It is crucial to investigate the validity and reliability of various selection tools and procedures before using them. Using a variety of selection tools and procedures is also one of the best ways to increase the overall validity and reliability of the selection process.

2. Better by Implementation: Training Those Who Select and Overcoming Personal Biases

Selecting the right candidates usually involves some subjectivity, which may compromise the validity and reliability of the selection process. Since unstructured interviews are commonly used in selection, it is logical for organizations to prepare a well-equipped team of interview- ers. It is also essential that interviewers are trained to determine the most relevant questions to ask based on their evaluation of the background and experience of the applicant in ques- tion. Interviewers must exercise extreme caution in selecting questions. Each question must have a clear and insightful job-related, rather than personal, purpose.

Although extensive training of interviewers might be costly, it can also help organizations avoid the substantial costs associated with the inadequate selection of employees, as well as potential litigation due to discriminatory selection. The same fact applies to all those involved in screening resumes initially, calling the applicants’ references, preparing job offers, or con- ducting other stages of the selection process. Interviewers are less likely to operate on per- sonal biases when they have a clear understanding of the job and are adequately trained to

AndreyPopov/iStock/Thinkstock

Resumes allow applicants room to expand on their qualifications, but applications ensure that the most critical, relevant information is communicated.

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Section 5.6 Legal Issues in Selection

assess applicants for their fit with the job and the organization. Sensitivity training familiar- izes managers and employees with issues of diversity, discrimination, and harassment. This training has become common in many organizations, which helps their members become more aware of their potential prejudices.

3. Better by Integration: Linking Selection to the HRM Process As emphasized in every chapter, the purpose of the HRM process is to help an organiza- tion achieve its goals through enhancing the effectiveness of its people. This purpose is realized by aligning the HRM objectives with those of corporate objectives and strate- gic plans. Linking the staffing process, which includes selection, with planning, employee compensation, and work design, will ensure that all processes mesh effectively and have a unified goal.

Careful planning, job analysis, job design, and recruitment can yield a smoother and more effective selection process because they provide a high-quality applicant pool to choose from. Well-designed compensation and benefits, training and development opportunities, and per- formance feedback can also facilitate selection by making the organization attractive to quali- fied applicants.

In turn, enhancing the selection process can facilitate other HR functions. Employees are more predictable when they are selected using valid and reliable procedures. Their perfor- mance level is more likely to be adequate and consistent. When organizational and job fit are carefully considered in the selection process, the process is likely to yield employees who stay longer, have better attitudes, and are more satisfied with their jobs (Kristof-Brown et al., 2005). Planning for, training, and assessing this type of workforce is significantly easier than would be the case in an organization with high turnover and dissatisfied, low-performing employees.

5.6 Legal Issues in Selection By their very nature, employee selection methods attempt to differentiate between candi- dates who possess requisite job skills and those who do not. When selection methods treat applicants differently based on other factors such as race, age, or gender, they are said to be discriminatory. Obviously, it is imperative for HR professionals to understand the rights and obligations of both the company and the job candidate in this sensitive area. This section, while not exhaustive, highlights landmark discrimination legislation and how it has affected organizations’ selection processes.

Equal Employment Opportunity As introduced in Chapter 4, Title VII of the Civil Rights Act prohibits discrimination based on sex, religion, race, color, or national origin in hiring, promoting, firing, setting wages, testing, training, apprenticeship, and other terms and conditions of employment. The Equal Employ- ment Opportunities Commission (EEOC) enforces Title VII and facilitates its application in organizations through education and technical assistance. EEOC also enforces laws that prohibit discrimination based on other protected classes such as disability and age.

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Section 5.6 Legal Issues in Selection

Age Discrimination Age discrimination occurs when an employer treats an employee differently based on his or her age, and is legally defined in the Age Discrimination in Employment Act (ADEA) of 1967. The ADEA is a federal law and protects all employees in the United States over the age of 40 from the moment they contact an employer about a job opening. Specifically, this law forbids employers from making employment decisions based on a person’s age. For example, employers cannot terminate employment, deny a bonus or raise, or refuse to hire or promote someone simply because they think that person is too old. However, it is impor- tant to note that persons under age 40 are not protected under the ADEA. Thus, it is possible, without legal repercussions, for an organization to discriminate against an individual for being too young.

Discrimination Based on Disability As discussed in Chapter 3, the Americans with Disabilities Act (ADA) of 1990 prohibits dis- crimination against disabled employees who are otherwise qualified. A disability is a physical or mental impairment that substantially limits one or more major life activities. Examples of individuals with physical disabilities include people with epilepsy, diabetes, severe forms of arthritis, hypertension, paraplegia, impaired vision, and carpal tunnel syndrome. Individuals with mental impairments include people with major depression, bipolar (manic-depressive) disorder, autism, and mental retardation. The law also makes it unlawful to discriminate against any applicant or employee, disabled or not, based on that person’s relationship or association with an individual with a disability.

The ADA forbids discrimination against people with disabilities in all areas of employment. In addition, it is unlawful for an employer to retaliate against an applicant or employee for asserting his or her rights under the ADA. However, an individual with a disability must be able to perform the essential functions and meet the qualifications of the job, with or with- out accommodation, in order to be protected by the ADA. In other words, the person must satisfy requirements for education, employment experience, skills, licenses, and any other job-related qualification standards. Additionally, the employer must provide any reasonable accommodation that a person with a disability needs in order to apply for a job, perform a job, or enjoy benefits equal to those offered to other employees. The employer does not, however, have to provide any accommodation that would impose an undue hardship on the organization.

Other Employment Laws Several other laws are also relevant for employment in general and employee selection in particular. For example, as early as 1935, the National Labor Relations Act (NLRA) of 1935 legalized unionization and collective bargaining. Shortly prior to the Civil Rights Act of 1964, the Equal Pay Act of 1963 prohibited pay differentials for equal jobs across genders. The Pregnancy Discrimination Act of 1978 also prohibits dismissal of an employee due to preg- nancy and ensures job security during maternity leave.

More recently, the Immigration Reform and Control Act of 1986 prohibits hiring illegal aliens. The Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires a 60-day notice prior to closedown or massive layoffs. The Employee Polygraph Protection Act of 1988

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Section 5.6 Legal Issues in Selection

limits the scope of lie detector use and prohibits it as the sole determinant in hiring and firing decisions. Finally, the Family and Medical Leave Act (FMLA) of 1993 affects organizations that employ 50 or more workers. Employees who have worked at such organizations for at least one year are granted up to 12 weeks of unpaid leave for family or medical rea- sons in any given one-year period. The recent Patient Protection and Afford- able Care Act (PPACA) increases the responsibilities of employers, employ- ees, and insurance companies to expand coverage, accessibility and affordability of healthcare benefits. The following two links provide updates on pertinent employment laws.

Foundational Concepts for the Enforcement of Employment Laws Several concepts are critical for the implementation and enforcement of the above employ- ment laws. For example, illegal discriminatory practices can be in the form of disparate treat- ment or disparate impact. A policy or selection procedure may not explicitly discriminate against members of a protected class (which would be a form of disparate treatment), yet this fact does not make that procedure legal. If the procedure has a discriminatory effect (i.e., a disparate impact), it can be illegal even if the effect is unintended.

For example, setting height or weight requirements for job applicants in a particular job may not be intended as a discriminatory practice. However, because these requirements exclude more women and certain racial groups that tend to be shorter or lighter, they can be found discriminatory unless they are justified by specific job requirements. These job requirements must create what is referred to as a business necessity.

Web Links Summary of Major HR Laws

http://www.dol.gov/opa/aboutdol/lawsprog.htm

Patient Protection and Affordable Care Act http://www.dpc.senate.gov/healthreformbill/healthbill04.pdf

In the first link, the U.S. Department of Labor provides a summary of major HR laws. Vari- ous links on this page also provide more details and assistance with interpreting the statutes and regulations governing employment in the United States. The second link summarizes the Patient Protection and Affordable Care Act.

AP Images/Greg Gibson

In February 1993, President Clinton signed the Family and Medical Leave Act. This act grants qualified employees up to 12 weeks of unpaid leave for family and medical reasons in any given one-year period.

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http://www.dol.gov/opa/aboutdol/lawsprog.htm

http://www.dpc.senate.gov/healthreformbill/healthbill04.pdf

Section 5.6 Legal Issues in Selection

As a case in point, it has been found justifiable that an individual in a wheelchair may be denied a job as a firefighter. On the other hand, for the same job category, height and weight requirements have been replaced with job sample tests through which applicants would be evaluated on their fitness levels and abilities to successfully carry out the physical job requirements, regardless of their body types.

Similar to discrimination, harassment in the workplace can assume two forms: quid pro quo or a hostile work environment. Quid pro quo (Latin for “this for that”) is a more explicit form of harassment where the harassing member of the organization may require the harassed member to exchange sexual favors against his or her will. A hostile work environment is a more subtle but comparably illegal form of harassment. Some organizational members can create a hostile work environment by offending others, causing them undue hardships, and hindering their abilities to adequately perform their jobs. Examples include sexual or racial remarks or displays of inap- propriate forms of art (e.g., posters that would make female employees uncomfortable). Unfor- tunately, many employees are unaware that their actions can cause their employers to be held legally liable for a hostile work environment. For example, employees who use company email to forward jokes with sexual, racial, or religious connotations, expose their employers to such risks.

It is also important to note that discrimination laws protect members of majority as well as minority groups. For example, as discussed in Chapter 4 in the context of affirmative action, some organizations may consider hiring less qualified women and minorities in the attempt to appear less discriminatory and more diverse. However, these attempts can be found dis- criminatory against more qualified white male applicants, who have traditionally constituted the majority of the working population. This “overcompensation” effect is referred to as reverse discrimination and is illegal.

Finally, it is important to note that filing a claim with EEOC comes at no cost to the employee, and that most of the laws discussed above also have clauses that prohibit employers from retal- iating against employees who choose to report discriminatory practices. Once an employee provides basic evidence of discrimination, the burden of proof shifts to the employer, who may lack the documentation and evidence that would make it possible to prove the work environment was not discriminatory. Discrimination lawsuits can cost the employer millions of dollars in punitive damages. As mentioned earlier, employment laws cover not only current employees, but also job applicants and past employees, making them particularly relevant for selection as well as for all HR practices.

A Moment in the Life of an HR Manager You Can’t Really Trust Your Gut Feeling About an Applicant

Most managers believe that they know a good applicant when they see one. However, in real- ity, they couldn’t be more wrong! Here are some examples:

1. Tom hires Paolo as a production worker because Paolo is an immigrant and Tom believes that immigrants are hard workers. All the references listed in the application gave Paolo favorable recommendations. Two weeks later, it turns out that Paolo is an illegal alien. Paolo gets deported, and the organization is fined.

(continued)

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5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

Finding the right applicant for the job is a challenging task that requires a great deal of effort and dedication. Some of the opportunities, challenges, and recent developments organiza- tions face regarding selection have to do with legal and regulatory issues; sociocultural devel- opments; global and competitive factors; employee motivation; morale, productivity, and retention; and unions and labor relations.

Legal and Regulatory Opportunities and Challenges in Employee Selection In addition to the strategic and administrative responsibilities associated with selecting and hiring a candidate, HR managers are also bombarded with legal aspects of employment such as new legislation, managerial and executive orders, and court decisions. Maintaining

A Moment in the Life of an HR Manager You Can’t Really Trust Your Gut Feeling

About an Applicant (continued) 2. Sarah is sitting in the interview room, waiting to interview Andy for a sales job. Andy is

late and comes in with a big coffee stain on his shirt. Sarah concludes that Andy would make a terrible salesperson because he is disorganized and poorly groomed; she cuts the interview short and does not recommend Andy for the job. A month later, Andy graduates with a GPA of 4.0 from a reputable school and accepts a more attractive job offer with a competitor. A year later, Andy is promoted to sales manager for having $5 million in sales, which is unheard of in that industry.

3. Jaime goes to diversity training and comes back convinced that the organization should exert more effort and resources in hiring women and minorities. So, for the next six months, she favors women and minorities in all of her selection decisions, even in cases where there are more qualified white males in the applicant pool. As a result, perfor- mance suffers and the organization faces a class action lawsuit.

Despite these hiring managers’ good intentions, they have made critical selection mistakes. As a result, they compromised the performance and reputation of their organizations. Tom should have done due diligence in confirming Paolo’s immigration status, which would have been more likely if he had given all applicants a fair chance and followed the proper proce- dures regardless of each applicant’s background. The same applies to Jaime. She should have kept the job requirements front and center in her decision, rather than any applicant’s gender or race. As for Sarah, she would have probably hired Andy had she still gone through the inter- view protocol and heard his amazing answers to the interview questions—answers that none of the other applicants would have been able to give. But because she was too busy staring at the coffee stain and supposing him to be disrespectful, rude, and undisciplined for being late to the interview, she did not really listen to anything he said.

Section 5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

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Section 5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

nondiscriminatory practices while determining employee eligibility and predicting perfor- mance are serious challenges that HR managers face on a daily basis. HR managers must exer- cise extreme caution to ensure that selection procedures are appropriately and purposefully designed to address only information that pertains to a job.

On the other hand, organizations that successfully promote diversity in their workforces have the tremendous opportunity to leverage unique talent and build a competitive advantage. For example, diversity is one of the criteria behind Fortune magazine’s Best Companies to Work For lists.

Sociocultural Developments: You May Have Selected Them, but What Will Make Them Select You? It is a very challenging process for organizations to attract qualified candidates for jobs in a highly competitive and skill-demanding market. Moreover, it is an even bigger chal- lenge to retain these talents, skills, and experiences within the organization. A consider- able portion of employees’ attraction to a certain job and their satisfaction with it is their personal perception of how well they fit in that job and in the general organizational cul- ture. Many factors govern these perceptions, such as challenging tasks, good prospects for growth and career advancement, job stability and security, assignments that carry inter- esting and meaningful responsibilities, the training and development of skills and talents, reasonable working hours, favorable working environment with well-matched peers, rec- ognition, respect, appreciation and self-actualization, fair treatment, company loyalty, and recognition and assistance with employees’ personal needs. However, resources are neces- sary to keep this host of factors in place, and these resources are drying up quickly in light of today’s cut-throat competition.

Moreover, significant shifts and chal- lenges are expected to occur as orga- nizations attempt to attract and retain the millennial generation born from the mid-1970s to the early 2000s. In addition to the above expectations, millennials tend to expect a lot of flex- ibility. They tend to take the norm as being self-directed careers that consti- tute a long series of short-term jobs, multiple income streams, and entre- preneurship. They are as unlikely to rely on organizational initiatives for their learning and development as they are to rely on social security to fund their retirement. In other words, millennials tend to take matters into their own hands and work at their own terms, making it difficult for any one organization to attract them, let alone

retain them over time, without constantly negotiating most of the terms of employment (Yost, 2011).

AlexRaths/iStock/Thinkstock

Members of the millenial generation tend to have higher expectations and work a series of short- term jobs instead of staying in one place. This makes attracting and retaining them a challenge for many organizations.

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Section 5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

Global and Competitive Factors Global staffing involves making recruiting and selection decisions for the purpose of hiring individuals for assignments in other countries. Global recruiting is extremely challenging, and the associated costs are usually very high. Accordingly, accurate selection decisions have to be carefully considered and validated. Global recruiting also involves a variety of factors that HR managers have to adapt and prepare for, such as different tax laws for different coun- tries as well as various customs, cultures, and traditions. For instance, for a successful global employee selection process to occur, HR managers must exert themselves to depict the life- style, work environment, culture, and habits to selected employees. Only then will employees be able to deal with such issues as acceptable codes of ethics and moral and religious values (Clegg & Gray, 2002).

To select the right candidate for a global assignment, HR managers must carefully examine aspects such as cultural adjustment abilities, personality traits and characteristics, knowl- edge of global organizational requirements, communication skills, and other personal and family requirements and considerations. Fortunately, despite the perceived high failure rates of expatriate assignments of the past, recent studies show that these perceived trends are in fact inaccurate (Harzing, 2002). Instead, research demonstrated that self-efficacy, frequency of interaction with host nationals, interpersonal skills, family support, and dis- cretion can facilitate expatriate adjustment. On the other hand, cultural novelty, role con- flict, and ambiguity were shown to hinder adjustment. Expatriate adjustment is critical. Well-adjusted expatriates have higher performance, are more satisfied, experience less job strain, engage in more organizational citizenship, and are less likely to quit (Hechanova, Beehr, & Christiansen, 2003).

Impact of Selection and Job Fit on Employee Motivation, Morale, Productivity, and Retention The last decade has witnessed a movement toward emphasizing employee talents and strengths in selection, organizational fit, and job fit. Organizational and job fit can be influen- tial factors for employees’ initial acceptance or rejection of job offers. However, what’s even more critical is that these factors can also exert significant influence on work quality, motiva- tion, and productivity after employees have been hired. For example, as discussed in Chapter 3, Gallup’s employee engagement methodology considers two factors—the daily ability to do what one does best at work and having a best friend in the workplace—as being critical for having engaged employees. In turn, this engagement yields numerous desirable outcomes for employees and organizations (Harter et al., 2002). These outcomes are particularly evident after true and unbiased job expectations are clearly and precisely communicated to appli- cants during the recruiting process.

Individuals approach organizations with many needs, desires, and expectations. These indi- viduals also come from a variety of backgrounds with different skills, experiences, capabili- ties, and personal perceptions. When these individuals are ultimately hired by organizations, they expect to find a job environment that would not only fulfill and satisfy their basic needs but also utilize, enhance, and promote their abilities and talents. In addition, significant job involvement and the utilization of maximum talent potential in prominent activities allow individuals to be recognized within the organization, which enhances their sense of self- actualization. Favorable HR practices can promote a concrete culture of trust and create a

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Section 5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

long-term sense of commitment within the organization for qualified and skilled human assets (Whitener, 2001).

Selection, Unions, and Labor Relations Union activities directly affect HR practices. For example, unions can impose pressure on management to give priority in job selection to union members rather than outside appli- cants when a position opens. Unions also influence the job selection process through nego- tiating shorter probationary periods and a quicker determination of employees’ suitability for positions. These activities can sometimes result in premature and poor judgment of indi- viduals, which may ultimately lead to inaccurate selection decisions and unsatisfactory job performance. Other areas where unions influence HR decisions include testing, promotions, layoffs, and merit-based systems. Organizations often seek favorable relations with unions, but such relations can be challenging, as they can compromise the validity and reliability of the selection process.

Eye on the Goal Beyond Validity and Reliability: Utility Analysis

and Return on Investment in Selection While effective selection can be expensive, the costs of selection mistakes can be even worse. One of the recognized scientific approaches to quantifying the return on investment in effec- tive selection is utility analysis, which uses statistical formulas to calculate these returns over time. Utility analysis takes into consideration several aspects of the selection process; for example, it accounts for the predictive capacity (validity) of one selection tool or process versus another. Utility analysis can also account for the joint predictive capacities of multiple selection devices, such as combining structured interviews and personality tests. Further- more, utility analysis accounts for the importance of the job for the organization in terms of the financial impact of more effective selection in that particular job. Some jobs may exhibit higher variability in performance, warranting more accurate selection, while others may not have as much variation across incumbents, limiting the scope of improvement in selection. Utility analysis also accounts for factors such as labor demand and supply, which the organiza- tion may not be able to control. When the desired talent is in abundant supply, organizations can afford to be more selective, which can increase the return on investment in more effective selection procedures. On the other hand, the cost may outweigh the benefits when the organi- zation intends to select the majority of applicants due to talent shortages.

As you probably know if you are familiar with accounting standards, the primary difference between an investment and an expense is that returns on investments accrue over more than one year. If effective selection is indeed an investment, its benefits should accrue beyond the current year. Statistical methods such as utility analysis go beyond the costs of using various selection devices, and even beyond the opportunity costs of effective selection (e.g., the redi- rection of managers’ time and energy away from other activities). These methods also take into consideration time-sensitive factors such as employee flows, which in turn are affected by the number of employees hired using one or more selection procedure, as well as these employees’ retention and turnover rates (Cascio & Boudreau, 2011).

(continued)

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Section 5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit

Eye on the Goal Beyond Validity and Reliability: Utility Analysis

and Return on Investment in Selection (continued ) Although calculating returns on investment is a complicated task, being able to quantify them in effective selection and other HR practices is an important skill set for HR professionals. This quantification can help them learn to speak the same language as the organization’s “C-Suite” (senior management and decision makers at the strategic level) and its shareholders, whose ultimate goal is to see the impact on the organizational bottom line. For example, when HR professionals are able to show the dollar value added of adopting more valid and reliable selec- tion procedures, these investments can be more readily compared with other more tangible investments such as those in buildings, machinery, equipment, or technology. This calculation increases the likelihood that valuable HR initiatives can get the resource allocations, funding, and support they need, to truly make a difference in achieving strategic organizational goals.

Web Link The Added Value of HR Initiatives

www.hrcosting.com

This free website allows HR professionals to quantify the benefits and costs of numerous HR initiatives, including enhanced selection tools and procedures. Decision makers can use this Web site to also conduct what-if analysis and compare alternative HR practices.

The HR Manager’s Bookshelf Give and Take, by Adam Grant

http://www.amazon.com/Give-Take-Helping-Others-Success/dp/0143124986/ref= sr_1_1?ie=UTF8&qid=1417412534&sr=8-1&keywords=give+and+take

In this book, Adam Grant (2014) introduces his revolutionary idea that contrary to conven- tional wisdom, givers, who give unconditionally and give more than they get, tend to experi- ence more success than takers, who take more than they give, and only give to those from whom they expect something back. Givers also tend to experience more success than match- ers, who try to play it fair by balancing their giving and taking. Grant provides many clues for detecting takers, which can be helpful in HR selection. He also discusses the social capital implications of giving, taking, and matching, and uses them to explain the unexpected success rate of givers.

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www.hrcosting.com

http://www.amazon.com/Give-Take-Helping-Others-Success/dp/0143124986/ref= sr_1_1?ie=UTF8&qid=1417412534&sr=8-1&keywords=give+and+take

Summary & Resources

Key Points

• Selecting the right employees is one of the most crucial HR processes, but it is also one of the most challenging decision-making processes in an organization. An effec- tive selection process should help the organization choose, from a group, applicants who fit certain jobs and also fit the organizational culture.

• Organizations should use a combination of individual differences—human, social, and psychological capital, and attitudes—as criteria for selection. These criteria should be prioritized based on job requirements and organizational culture.

• Common selection methods include resumes, application forms, tests, interviews, reference checks, physical exams, and drug tests.

• The quality of selection tools, methods, and procedures depends on their validity and reliability. Validity is the extent to which a selection tool or procedure can accu- rately predict subsequent performance. Reliability is the extent to which a selection tool, method, or procedure can produce consistent, replicable results over time and across situations.

• There are numerous laws and regulations governing HR practices, including selec- tion. While employee selection methods attempt to differentiate candidates who possess requisite job skills from those who do not, employers should not treat applicants differently based on discriminatory factors such as gender, religion, race, ethnicity, national origin, age, or disability.

• Ensuring effective selection, organizational, and job fit can have a significant benefit on employee motivation, morale, productivity, and retention. Selecting the right can- didates is critical for creating human-based competitive advantage.

Best Companies to Work For #12: Quicken Loans and #31: Intuit

http://fortune.com/best-companies/quicken-loans-12/

http://reviews.greatplacetowork.com/quicken-loans

http://fortune.com/best-companies/intuit-31/

http://reviews.greatplacetowork.com/intuit-inc

It is important to select employees who share the same organizational values and priorities. Quicken Loans made this notion a priority. In an effort to reverse Michigan’s “brain drain,” it relocated its headquarters to Detroit in 2010. It offers incentives for its employees to move into the city and to get involved in volunteer activities to revitalize it. Of course, it takes a par- ticular type of employee to desire such a lifestyle, and that is the type of employee that Quicken looks for in the selection process.

Intuit has a similar emphasis on contributing to the community and encouraging employees to volunteer and get involved. However, Intuit has a unique perspective on new employee selection and retention. For example, it is known for allowing some of its new hires to spend their first month adjusting to the organization and its culture, without any specific job assign- ments. While this may seem to be an expensive approach, it allows employees to evaluate their person-organization fit early on so that there are no surprises or regrets.

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http://fortune.com/best-companies/quicken-loans-12/

http://reviews.greatplacetowork.com/quicken-loans

http://fortune.com/best-companies/intuit-31/

http://reviews.greatplacetowork.com/intuit-inc

Summary & Resources

Age Discrimination in Employment Act (ADEA) A federal law that prohibits dis- crimination against employees over age 40.

aptitude How quickly or easily one will learn in the future.

Big Five personality traits Five recognized individual differences: conscientiousness, extroversion, agreeableness, emotional stability, and openness to experience.

construct validity The extent to which a selection tool accurately reflects the abstract personal attributes, or constructs, that a tool intends to measure.

content-related validity The logical con- nection between the selection procedure and the actual job.

core self-evaluations A composite of four individual differences: self-esteem, general- ized confidence, neuroticism, and locus of control.

criterion-related validity The predictive, empirical (number-based) link between a predictor (such as a selection tool, method, or procedure) and an actual measure of job performance; or the statistical correlation between applicants’ scores on the predic- tor and their subsequent job performance scores.

disparate impact An illegal situation where a policy or selection procedure that does not explicitly discriminate against members of a protected class has a discriminatory effect, whether intended or unintended.

disparate treatment An illegal situation in which an organization explicitly discrimi- nates against an individual based on one of the protected classes.

Employee Polygraph Protection Act A law that limits the scope of lie detector use and prohibits it as the sole determinant in hiring and firing decisions.

Equal Employment Opportunities Commission (EEOC) An entity that enforces anti-discriminatory laws and facilitates their application in organizations through education and technical assistance.

Equal Pay Act A law that prohibits pay dif- ferentials for equal jobs across genders.

external validity The generalizability of a selection tool or procedure.

face validity The subjective impression of how relevant to a job various applicants, organizations, or observers perceive a predictor to be.

Family and Medical Leave Act (FMLA) A law that requires an organization that employs 50 or more workers to grant up to 12 weeks of unpaid leave, for family or medical reasons in any given one-year period, to employees who have worked at the organization for at least one year.

general mental abilities (GMA) Raw intel- ligence as measured by recognized intelli- gence quotient (IQ) tests.

hostile work environment A discrimina- tory and thus illegal form of harassment where some organizational members create an uncomfortable or offensive environment for others, causing them undue hardships and hindering their abilities to adequately perform their jobs.

Immigration Reform and Control Act A law that prohibits hiring illegal aliens.

Key Terms

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Summary & Resources

individual differences Personal traits that tend to be stable over time and across situations.

Patient Protection and Affordable Care Act (PPACA) A law that increases the responsibilities of employers, employees, and insurance companies to expand cover- age, accessibility, and affordability of health- care benefits and progressively penalizes them for failing to do so; also known as Obamacare or the Affordable Care Act (ACA).

person-job fit The extent to which the demands of the job are compatible with the capabilities of the incumbent and to which the needs or preferences of the incumbent are met by the job.

person-organization fit The extent of the resemblance between the personal core val- ues and beliefs of individuals and the norms, rules, regulations, and values of the organi- zations where they work.

positive psychological capital An indi- vidual’s positive psychological state of development that is characterized by (1) having confidence (self-efficacy) to take on and put in the effort necessary to succeed at challenging tasks; (2) attributing positive reasons and causes (optimism) to succeed- ing now and in the future; (3) persevering toward goals and, when necessary, redirect- ing paths to goals (hope) in order to suc- ceed; and (4) when beset by problems and adversity, sustaining and bouncing back and even beyond (resiliency), to attain success.

Pregnancy Discrimination Act A law that prohibits dismissal of an employee due to pregnancy and ensures job security during maternity leave.

psychological states Cognitive, affective, and social capabilities that represent open- ness to growth, development, and change over time and across situations.

quid pro quo Latin for “this for that”; a dis- criminatory and thus illegal form of harass- ment where the harassing member of the organization requires the harassed member to exchange sexual favors against his or her will.

reliability The extent to which the results from a predictor (such as a selection tool, method, or procedure) can be replicated.

reverse discrimination An illegal practice in which the majority group is discriminated against in favor of a minority group.

social capital The value added through interpersonal relationships, interactions, and networking.

Title VII of the Civil Rights Act A law that prohibits discrimination based on sex, religion, race, ethnicity, or national origin in hiring, promoting, firing, setting wages, testing, training, apprenticeship, and other terms and conditions of employment.

utility analysis A scientific approach to quantifying the return on investment in effective selection and other HR practices using statistical formulas to calculate these returns over time.

validity The extent to which a selection tool or procedure can accurately predict subse- quent performance.

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Summary & Resources

Critical Thinking Questions

1. Recent research on “Generation Y” suggests that for individuals of that generation, fit with the group is more important than fit with the organization. Do you believe this to be true? Why or why not?

2. If you have a selection method that is highly valid in predicting job performance but also yields high disparate impact, although the organization may be able to legally defend this method, should it continue to use it? Are there circumstances when it would be more or less acceptable to use it?

3. Does “face validity” really matter? Why should an organization concern itself with face validity (or not) if it doesn’t have to? Should an organization be willing to trade off other types of validity to have face validity?

4. Despite being less valid in predicting job performance, both hiring managers and applicants prefer unstructured interviews over structured interviews. Why do you think this is the case?

5. A valid selection tool must be reliable, but a reliable selection tool isn’t necessarily valid. Why is this the case?

6. Provide an example from your own experience or through additional research that either supports or refutes Adam Grant’s theory about givers, takers, and matchers.

7. Recall an example from your own personal experience where the candidate that appeared to be most qualified for a position in an organization where you work/ worked did not turn out to have the best person-job fit and/or person-organization fit. What were some of the factors that were overlooked in the selection process?

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