Selection for Fit, Recruitment and selection, HRM

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“What is the biggest cost for a company?” Answer was “WRONG PEOPLE”

Statistics - 2012 poll conducted by CareerBuilder. 41% companies experienced $25,000 per single bad hire. 24% incurred $50,000 for a single bad hire.

The cost includes.

• loss of productivity and time. • cost to recruit. • train new employee. • employee morale being affected.

Another interesting statistic . • 67% of employees were considered bad hires due to their ability to

produce proper quality work (lack of competency and job fit). • 60% did not work well with other employees (lack cultural fit).

To acquaint you with the Selecting for

fit (Individuals Fit with Jobs,

Organizations, Cultures) and

Employment Laws (Legal/ Social context

for Recruitment & Selection).

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PART 1 - Raja Manzar

Employee selection.

Aligning Talent & HR Strategy.

HR Strategies (Recap).

Strategic Framework for Employee Selection.

Making Strategic Selection Decision.

PART 2 - Sajid Zafar

Making Selection Method Good.

Commonly Used Selection Methods.

Types of Interviews. 6

Selection Decisions.

PART 3 – Muhammad Farooq Munir

Employment Laws.

PART 4 - Panel

Article Abstract - The Value of Person

Organization Fit by Dr. Charles Handler.

Question Answer session.

Conclusion.

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Employee selection

The process of choosing people to bring into an organization.

Effective selection provides benefits to an organization

It can improve the effectiveness of other human resource practices and prevent numerous problems.

For example; motivated employees who fit with the organizational culture can reduce disciplinary problems and diminish costs associated with replacing employees who quit.

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HOW IS EMPLOYEE

SELECTION STRATEGIC? Good selection practices must fit with an

organization’s overall HR strategy.

As we have already studied that HR strategies vary on two dimensions:

whether they have an internal or an external labor orientation and

whether they compete through cost or differentiation.

These provide guidance about the type of employee selection practices that will be most effective for a particular organization.

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HR Strategies (Recap)

There are 2 strategies pursued at business level.

Cost leadership strategy. Organizations seek to become low-cost producers of goods and services. Their goal is to develop efficient production methods that enable them to sell at a lower price than competitors.

Differentiation strategy. Organizations using this strategy seek to produce goods and services that are somehow superior to the goods and services provided by competitors. Their goal is to create unique value for which customers are willing to pay a higher price.

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HR Strategies (Recap)

There are four human resource strategies commonly used by organizations.

1. Loyal Soldier.

2. Bargain Laborer.

3. Committed Expert.

4. Free Agent.

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Hiring & retaining loyal employees who do whatever the company asks of them.

Employees have broad roles and perform a variety of different tasks.

Recruitment/hiring because they fit organization culture & their potential to become loyal employees.

Efforts are made to satisfy the needs of employees to build a strong bond which reduces the employee turnover.

Hiring & provide extensive training to employees. Performance appraisals are designed to facilitate

cooperation rather than competition. Compensation includes long-term incentives and benefits

linked to the overall performance of the organization.

The Loyal Soldier Strategy

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Obtaining employees not demanding high wages & design work to have tight control on employee efforts.

Employees are given clearly defined tasks that can be learned easily. People are recruited and hired to perform simple tasks that do not require clearly developed skills.

Little attention is paid to meeting the long-term needs of employees. Organizations don’t provide careers with clear paths for promotion and advancement.

Performance appraisal focuses on day-to-day feedback and rarely incorporates formal measures.

Training is limited to on-the-job techniques that teach specific methods for completing particular tasks.

Compensation is frequently based on hours worked, and benefits and long-term incentives are minimal.

Bargain Laborer HR Strategy

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Hire & retain who specialize in performing certain tasks. Employees have a great deal of freedom to innovate and to

improve methods of completing tasks. Recruitment/hiring due to potential fit with the org culture

& their aptitude for becoming experts in particular areas. People hired in early careers and train them to be experts

in specific fields, such as accounting or sales. Performance appraisals are designed to balance

cooperation and competition among employees. Careers generally include numerous promotions. Employees receive long-term training that helps them

develop strong expertise. Compensation is relatively high and usually includes a good

benefits package that ties employees to the organization.

Committed Expert HR strategy

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Hiring critical skilled people but not necessarily expected to remain with the organization for a long period of time.

Work is such that employees have extensive responsibility within specific areas & substantial freedom to work.

No efforts are made to encourage strong attachments between employees and the organization.

Recruitment done because they already have the skills and experience that they need to perform specific jobs.

No long-term careers in the organization. Performance Appraisal focuses on outcomes and results. No training, Compensation high but Short-term. Pay is linked to individual performance.

Free Agent HR Strategy

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Internal Recruitment • Job Posting: The process of announcing job openings to

employees.

Job information must be made available to all employees.

Ensure minority workers and disadvantaged individuals are aware of job opportunities.

Employee cynicism occurs when there is not “equal” opportunity for open positions.

• Employee Referrals:

Some believe this is the route to the best employees.

Can perpetuate discriminatory hiring practices.

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External Recruitment Employment agencies.

Executive search firms.

In-house recruiters.

Local advertising:

Newspaper.

Multimedia.

Internships.

Job fairs.

College recruiting.

Walk-in candidates.

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Rel

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Talent Type

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Term

Generalist Specialist

Long Term Generalist • Need for organization fit • Potential & Motivation

Loyal Soldier Internal/Cost HR

Strategy

Short Term Generalist • Little Need for fit • Potential & Dependability

Bargain Laborer External/Cost HR

Strategy

Long Term Specialist • Need for Organization & Job

fit • Potential for Specific

Expertise

Committed Expert Internal/Differentiation

HR Strategy

Short Term Specialist • Need for Job fit • Achievement

Free Agent External/Differentiation

HR Strategy

Strategic Framework for Employee Selection

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Strategic Framework for Employee

Selection

The horizontal dimension represents differences in the type of talent sought

The vertical dimension represents the type of relationship between the employees and the organization.

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Talent Type




Strategy

Long-term Generalists

• Are individuals who have developed skills and knowledge concerning how things are done in a specific organization.

• Long-term generalists are beneficial for

organizations using the Loyal Soldier HR strategy.

• HR strategy is focused on keeping employees once they are hired.

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Benefits of Long-Term Generalist

• Lack of specific expertise allows firms to reduce payroll costs.

• Employees have develop skills and abilities that are only valuable to the specific organizations, which reduces the likelihood that they will move to another employer.

• Reduction in the recruitment, selection and training expenses.

• Because they stay long they tend to develop relationships and form a strong sense of commitment to the organization.

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Strategy



Strategy

Short-Term Generalist

• Provide a variety of different inputs but do not have areas of special skill or ability.

• This is most often associated with the Bargain Laborer HR strategy.

• Most positions are filled by hiring people away from other organizations.

• The objective is to identify and hire employees to produce low-cost goods and services.

• To selection people who can perform simple tasks that require little specialized skill.

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Benefits of Short-Term Generalist

• People without specialized skills do not generally demand high compensation, which keeps payroll costs as low as possible.

• Because Short Term Generalist lack specific expertise, they also are usually more willing to work in routine jobs and do whatever they are asked.

• The number of employees working for the organization can be flexed up or down as demand for goods and services increases or decreases

• Work procedures are simple, and employees who demand higher wages are simply replaced by new workers.

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Strategy



Strategy

Long Term Specialist • Need for Organization &

Job fit • Potential for Specific

Expertise


HR Strategy

Long-term Specialists

• These are people who have an expertise in a particular area. Such as Accounting.

• The use of long-term specialists fits the Committed Expert HR strategy.

• Selection is to identify people who can assist the company in innovating and produce superior goods and services over time.

• People are hired even if they have not yet developed all the skills needed to perform the job, as long as they are committed to advancing within a specific profession.

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Benefits of Long-Term Specialists

• It enables organizations to create and keep a develop talent.

• Employees are given the time and assets to develop the skills they need to be the best at what they do and add value back to the organization.

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Talent Type

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Strategy



Strategy

Long Term Specialist • Need for Organization &

Job fit • Potential for Specific

Expertise


HR Strategy

Short Term Specialist • Need for Job fit • Achievement

Free Agent External/Differentiation

HR Strategy

Short-term Specialists

• Are employees who provide specific inputs for relatively short periods of time.

• Associated with the Free Agent HR strategy.

• Staffing is aimed at hiring people who have already developed skills that they can bring to the organization to produce innovative goods and top-quality service.

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Benefits of Short-Term Specialists

• Employees provide services relatively short periods of time.

• Allows the organization to quickly acquire needed expertise, without waiting for hires to acquire the skills.

• The organization pays premium dollar for this knowledge and skills but makes no long-term commitments and both parties can end the employment relationship at anytime.

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Making Strategic Selection Decision

The focus is on two factors:

Job-based fit

Organization-based fit

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seeks to match an individual’s abilities and interests with the demands of a specific job.

Person-Job Fit (or P-J Fit). Person-Job Fit involves the measurement of what we often refer to as “hard” information about a candidate’s suitability for the tasks that are required for successful performance of a specific job.

Aspects of P-J Fit include

Specific skills

Levels of knowledge about specific subject matter

Cognitive abilities.

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Job-based fit

is concerned with how well the individual’s characteristics match the broader culture, values, and norms of the firm.

Person-Organization Fit (or P-O Fit). “I think Sally is a really good fit for our company, Let’s hire her!”?

Major dimensions Jennifer Chatman, identifies the following Organizational Culture Profile (OCP): Innovation Stability Orientation towards people (fair and supportive) Orientation towards outcomes (results-oriented,

achievement-oriented) Easygoing vs. aggressive Attention to detail Team orientation 36

Organization-based fit

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Making Selection Method Good?

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Selecting the Best Selection Method

Questions to ask How reliable is the process-do you get the

same result time and again.

Is it valid-does it relate to the job or performance outcome

Is the method cost effective-utility.

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Utility

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Choosing the Best Selection Method

Questions to ask Is the process legal – does not break any laws

and fair – treats every application the equally.

Is it acceptable – How does the applicant view the selection process and consequently the organization.

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COMMONLY USED

SELECTION METHODS The three most common methods used are:

Testing

Gathering Information

Interviewing

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Testing

Tests measure knowledge, skill, and ability, as well as other characteristics, such as personality traits. The types are :-

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Cognitive Ability Testing. To measure learning, understanding, and ability to solve problems. e.g. Intelligence Tests.

Personality testing To measure patterns of thought, emotion, and behavior. e.g. Myers Briggs.

Physical Ability Testing To assess muscular strength, cardiovascular endurance, and coordination.

Testing (contd….)

Integrity Testing Designed to assess the likelihood that applicants will be dishonest or engage in illegal activity.

Drug Testing Requires applicants to provide a urine sample that is tested for illegal substances.

Work Sample Testing (Assessment Center) -measures performance on some element of the job such as keyboarding.

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*1 5 never; 2 5 rarely; 3 5 occasionally; 4 5 often; 5 5 almost always Higher scores thus represent more widespread usage.

Source: Information from Ann Marie Ryan, Lynn McFarland, Helen Baron, and Ron Page, ‘‘An International Look at Selection Practices: Nation and Culture as Explanations for Variability in Practice,’’ Personnel Psychology 52 (1999): 359–391.

Testing

Source: Sample items for Wonderlic Personnel Test-Revised (WPT-R). Reprinted with permission from Wonderlic, Inc.

Sources: Information from Timothy A. Judge, Daniel Heller, and Michael K. Mount, ‘‘Five-Factor Model of Personality and Job Satisfaction: A Meta-Analysis,’’ Journal of Applied Psychology 87 (2002): 530–541; Murray R. Barrrick, Michael K. Mount, and Timothy A. Judge, ‘‘Personality and Performance at the Beginning of the Millennium,’’ International Journal of Selection and Assessment 9 (2001): 9–30.

Information Gathering

• Common methods for gathering information include application forms and résumés, biographical data, and reference checking. – Application Forms and Résumés –Generally ask for information

such as address and phone number, education, work experience, and special training.

– At the professional-level, similar information is generally presented in résumés.

• Biographical data - historical events that have shaped a person’s behavior and identity.

Information Gathering – (continued)

• Reference Checking - involves contacting an applicant’s previous employers, teachers, or friends to learn more about the applicant Issues with reference checking: – defamation of character, which occurs when something untrue

and harmful is said about someone. – negligent hiring,

occurs when an organization hires someone who harms another person and the organization could reasonably have determined that the employee was unfit.

Interviewing • The interview is the most

frequently used selection method.

• Interviewing occurs when applicants respond to questions posed by a manager or some other organizational representative (interviewer).

• Typical areas in which questions are posed include education, experience, knowledge of job procedures, mental ability, personality, communication ability, social skills.

Types of Interviews

• Structured Interviews - uses a list of predetermined questions. All applicants are asked the same set questions. There are two types of structured interviews.

– Situational interview, in which the interviewer asks questions about what the applicant would do in a hypothetical situation

– Behavioral interview, in which the questions focus on the applicant’s behavior in past situations.

Creating Structured Interview Q’s

Types of Interviews - continued

• Unstructured Interviews-open ended questions are used such as “Tell me about yourself”.

• This allows the interviewer to probe and pose different sets of questions to different applicants.

Interviews

Types of Employment Interview Q’s

SELECTION DECISIONS

• Decision can be made using one of the following methods.

– Predictor Weighting - combines a set of selection scores into an overall score in which some measures count more than others.

– Minimum Cutoff Approach – The applicant’s strength in one area to compensate for weakness in another area.

Selection Decisions (contd….)

– Multiple Hurdle Approach - applicants must meet the minimum requirement of one selection method before they can proceed to the next.

– Banding Approach - uses statistical analysis to identify scores that may not be meaningfully different.

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Civil Right Act of 1964

Prohibts employoment descrimination

Hiring

Compensation

Terms conditions or privileges of employment based on:

• Race

• Religion

• Color

• Sex

• National origin

Executive Orders eo 11246

Prohibts employoment descrimination • Race, Religion, Color & Sex.

• National origin.

eo 11375

Add Sex based descrimination to eo 11246.

eo 11478

Amends part of eo 11246 states practices in federal govt must be based on merit and also prohibts descrimination based on Political affiliation, marital status or physical handicap.

Descrimination in employment act of

1967

Protects employees

40- 65 years of age.

amended to age 70 (1978) .

Later amended (1986 ( to eliminate the upper age limit altogather.

EEO ACT OF 1972

Granted the enforcement powers for the eeo.

Discrimination in employment act of

1978

Increased mandatory retirement age from 65 to 70 ,. later amended1986 to eliminate upper age limit.

Pregnancy Discrimination act of

1978

Affords EEO protection to pregnant workers and requires pregnancy to be treated like any other disability.

Americans with Disabilities act of

1990

Prohibits discrimination against an essentially qualified individual and requires enterprises to reasonably accommodate individuals.

Civil Rights act of 1991

Nullified selected supreme court decisions, Reinstates burden of proof by employer. Allows for punitive and compensatory damages through jury trials.

Family and medical leave act of 1993

Permits employees in Organizations of 50 or more workers to take up to 12

weeks of unpaid leave for family or medical reasons each Year.

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The Value of Person-Organization Fit by Dr. Charles Handler May 20, 2004 About the author. Dr. Charles Handler is President and founder

of Rocket-Hire since 2001. He is a thought leader, analyst, and practitioner in the talent assessment and human capital space. Throughout his career Dr. Handler has specialized in developing effective, legally defensible employee selection systems. Being the president and founder of Rocket Hire, a vendor neutral consultancy dedicated to creating and driving innovation in talent assessment. Dr. Handler has helped companies such as Intuit, Wells Fargo, KPMG, Scotia Bank, Hilton Worldwide, and Humana to design, implement, and measure impactful employee selection processes. Dr. Handler holds a M.S. and Ph.D. in Industrial/Organizational Psychology from Louisiana State University, USA.

mailto:[email protected]

http://rocket-hire.com/



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Defining Fit Organizational psychologists have traditionally defined fit in two

distinct ways. Both definitions can play an important role in providing the data needed to help make quality hiring decisions, but they do so in different ways.

Person-Job Fit. measurement of “hard” information about a candidate’s

suitability for the tasks that are required for successful performance of a specific job. “Hard” aspects of P-J Fit include things such as a candidate’s specific skills, their levels of knowledge about specific subject matter, and their cognitive abilities.

Person-Organization Fit. less common of fit to be systematically measured

during the hiring process using scientifically designed tools.

Outcomes of Fit Probably the most notable outcome of a good P-O Fit is

increased tenure., fit has been linked to increased worker satisfaction, organizational commitment, and organizational identification. There are many positive outcomes of a good P-O Fit.

Potential Problems with Using Fit Less objective nature of the dimensions that make up P-O Fit. Transcend the actual duties associated with a specific job.

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Practical Tips About Fit quick overview of ideas for companies.

Build fit into your employment brand. Communicating these values in

your recruitment brand.

Use P-O Fit data to compliment P-J Fit data. It’s important not to use

P-O Fit data as the sole criteria when making hiring decisions. Good hiring decisions should always be based on multiple sources of information.

Use fit to optimize teams when making internal assignments. An inventory of values collected during the hiring process can be used to help ensure that an employee is not assigned to a work group that has a culture that is not in line with their values.

Study the impact of P-O Fit. It’s important that organizations choosing to

use fit should really challenge themselves to try and collect some data regarding its impact on objective criteria other than tenure.

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Education

Selection for Fit, Recruitment and selection, HRM