Chapter 8: Selecting Employees to Fit the Job and the Organization Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth

Chapter 8:Chapter 8:

Selecting Employees to Fit the Selecting Employees to Fit the Job and the OrganizationJob and the Organization

Jackson and SchulerJackson and Schuler

© 2003 South-Western College Publishing. All rights reserved.

Eighth editionEighth edition

Managing Human Managing Human ResourcesResources

© 2003 South-Western College Publishing. All rights reserved. 8–2

Chapter OutlineChapter OutlineChapter OutlineChapter Outline

The Strategic Importance of SelectionThe Strategic Importance of Selection Overview of the Selection ProcessOverview of the Selection Process Techniques for Assessing Job ApplicantsTechniques for Assessing Job Applicants The Perspective of ApplicantsThe Perspective of Applicants Legal Considerations in Selecting ApplicantsLegal Considerations in Selecting Applicants Partnership in SelectionPartnership in Selection


The Strategic Importance of The Strategic Importance of SelectionSelection

The Strategic Importance of The Strategic Importance of SelectionSelection

SelectionSelection The process of obtaining and using The process of obtaining and using

information about job applicants to determine information about job applicants to determine who should be hired for long- or short-term who should be hired for long- or short-term positionspositions

First, assess job requirementsFirst, assess job requirements Then assess applicants’Then assess applicants’

• CompetenciesCompetencies• PreferencesPreferences• InterestsInterests• PersonalityPersonality

Successful Selection: Employees are capable of high productivity and stay as long as

they can contribute

Successful Selection: Employees are capable of high productivity and stay as long as

they can contribute


Uses of Selection DecisionsUses of Selection DecisionsUses of Selection DecisionsUses of Selection Decisions

Fill open jobsFill open jobs Fill future openingsFill future openings PromotePromote TransferTransfer Appoint to task forceAppoint to task force Decide to mentorDecide to mentor


Selection and Strategy Selection and Strategy ImplementationImplementation

Selection and Strategy Selection and Strategy ImplementationImplementation

Executives: Critical to business successExecutives: Critical to business success Managers of Global Operations: Managers of Global Operations:

Expatriates (Parent-Country Nationals)Expatriates (Parent-Country Nationals) Host-Country Nationals (HCNs)Host-Country Nationals (HCNs) Third-Country Nationals (TCNs)Third-Country Nationals (TCNs)

All employees need to perform well and be All employees need to perform well and be good corporate citizens.good corporate citizens.


Selecting Global ManagersSelecting Global ManagersSelecting Global ManagersSelecting Global Managers

Parent-Country Nationals:

• Maintain organizational control and coordination

• Give promising managers international experience

Host-Country Nationals:

• Language/cultural barriers eliminated

• Hiring costs reduced

• Improve continuity

• Careers for HCNs

Third-Country Nationals:•Salary and Benefit requirements may be lower

•May be better informed about host-country environment


The Economic Utility of Effective The Economic Utility of Effective Selection PracticesSelection Practices

The Economic Utility of Effective The Economic Utility of Effective Selection PracticesSelection Practices

ValueValue Potential value high for key positionsPotential value high for key positions Accumulated effects of many selection Accumulated effects of many selection

decisions adds updecisions adds up Minimize risk of harm and lawsuits Minimize risk of harm and lawsuits

by effective screeningby effective screening


The Economic Utility of Effective The Economic Utility of Effective Selection Practices (cont’d)Selection Practices (cont’d)

The Economic Utility of Effective The Economic Utility of Effective Selection Practices (cont’d)Selection Practices (cont’d)

CostCost Time and resources used to collect info Time and resources used to collect info

about applicantsabout applicants More expensive procedures justified whenMore expensive procedures justified when

• Tenure will be longTenure will be long• Increases in performance Increases in performance

have large impacthave large impact• Many applicantsMany applicants


Consequences of Selection Consequences of Selection DecisionsDecisions

Consequences of Selection Consequences of Selection DecisionsDecisions

Reject aqualified

candidate(incorrectdecision)

Reject aqualified

candidate(incorrectdecision)

Accept aqualified

candidate(correctdecision

Accept aqualified

candidate(correctdecision

Reject anunqualifiedcandidate(correct

decision)

Reject anunqualifiedcandidate(correct

decision)

Accept anunqualifiedcandidate(incorrectdecision)

Accept anunqualifiedcandidate(incorrectdecision)

Employer’s Selection DecisionEmployer’s Selection Decision

How How Employee Employee PerformsPerforms

Do not offerDo not offer Offer the jobOffer the job

HighHighperformanceperformance

LowLowperformanceperformance


Overview of the Selection ProcessOverview of the Selection ProcessOverview of the Selection ProcessOverview of the Selection Process

Assess job tasks and organizational contextAssess job tasks and organizational contextAssess job tasks and organizational contextAssess job tasks and organizational context

Choose valid predictors to assessChoose valid predictors to assessChoose valid predictors to assessChoose valid predictors to assess

Design a selection process that allows Design a selection process that allows Organization & applicant to make a decisionOrganization & applicant to make a decision

Design a selection process that allows Design a selection process that allows Organization & applicant to make a decisionOrganization & applicant to make a decision

Synthesize information and make selectionSynthesize information and make selectionSynthesize information and make selectionSynthesize information and make selection


The Selection RatioThe Selection RatioThe Selection RatioThe Selection Ratio

Number of applicants hired divided by the Number of applicants hired divided by the number of applicants in the initial pool.number of applicants in the initial pool.

Lower ratio = More opportunity to find Lower ratio = More opportunity to find outstanding candidatesoutstanding candidates

Have lower ratios when:Have lower ratios when: Use effective recruitment Use effective recruitment High unemploymentHigh unemployment


Selection Practices and Integrated Selection Practices and Integrated HRHR

Selection Practices and Integrated Selection Practices and Integrated HRHR

Selection Practices

•What is assessed? How?

•Sequence of assessments

•Who assesses? How evaluate?

Selection Practices

•What is assessed? How?

•Sequence of assessments

•Who assesses? How evaluate?

Other HR Other HR ActivitiesActivities•LegalLegal

•Job AnalysisJob Analysis

•RecruitmentRecruitment

Global and Global and Organizational Organizational EnvironmentEnvironment•StructureStructure

•CultureCulture

Criteria for Choosing Selection Methods•Validity, reliability

•Legality, Practicality

Methods•Applications, interviews

•References, simulationsUse of Selection Decisions•Hiring

•Promotions

•Transfers

•Training Needs

•Layoffs


Assess the Job Tasks andAssess the Job Tasks andOrganizational ContextOrganizational Context

Assess the Job Tasks andAssess the Job Tasks andOrganizational ContextOrganizational Context

Accomplished using job analysis and Accomplished using job analysis and competency modelingcompetency modeling

Organizational context includes:Organizational context includes: Company cultureCompany culture ValuesValues Business StrategyBusiness Strategy StructureStructure

CriteriaCriteria Outcomes affected by selection decisionsOutcomes affected by selection decisions


Choose Valid PredictorsChoose Valid PredictorsChoose Valid PredictorsChoose Valid Predictors

Selection means making predictions about:Selection means making predictions about: How people will performHow people will perform How long people will stayHow long people will stay Whether people will be good corporate Whether people will be good corporate

citizenscitizens

ValidityValidity Refers to the usefulness of information for Refers to the usefulness of information for

predicting future job behaviorpredicting future job behavior


Content ValidationContent ValidationContent ValidationContent Validation

Competency modeling used to determine job Competency modeling used to determine job requirementsrequirements Expert(s) determine which predictors will Expert(s) determine which predictors will

best predict job successbest predict job success Most commonly used validation strategyMost commonly used validation strategy Especially useful when organization is Especially useful when organization is

creating new jobscreating new jobs Practical approach, but subjectivePractical approach, but subjective


Criterion–Related ValidationCriterion–Related ValidationCriterion–Related ValidationCriterion–Related Validation

People are assessed on both predictor and People are assessed on both predictor and job performancejob performance Statistical correlational analysis is used to Statistical correlational analysis is used to

determine the relationship between determine the relationship between predictor scores and criteriapredictor scores and criteria

Costly, and need large Costly, and need large number of incumbents number of incumbents to use this approachto use this approach


Validity GeneralizationValidity GeneralizationValidity GeneralizationValidity Generalization

Assumes that results of criterion-related Assumes that results of criterion-related validity studies performed in other companies validity studies performed in other companies can be generalized to your companycan be generalized to your company Relatively new approachRelatively new approach Many selection techniques have been shown Many selection techniques have been shown

to be valid across variety of jobsto be valid across variety of jobs Predictors must be relevant to the job.Predictors must be relevant to the job.


Designing the Selection ProcessDesigning the Selection ProcessDesigning the Selection ProcessDesigning the Selection Process

There may be several means that can be There may be several means that can be used to assess each predictor. For example, used to assess each predictor. For example, communication skills can be assessed by:communication skills can be assessed by: Supplemental applicationSupplemental application Panel InterviewPanel Interview Manager InterviewManager Interview Reference CheckReference Check


Choosing Reliable MeasuresChoosing Reliable MeasuresChoosing Reliable MeasuresChoosing Reliable Measures

ReliabilityReliability Degree to which a measure yields Degree to which a measure yields

dependable, consistent resultsdependable, consistent results

Reliable results don’t change with:Reliable results don’t change with: Different test administratorsDifferent test administrators Different interviewersDifferent interviewers Different days or timesDifferent days or times Different circumstances that Different circumstances that

are irrelevant to the decisionare irrelevant to the decision


Typical Steps in the Selection Typical Steps in the Selection ProcessProcess

Typical Steps in the Selection Typical Steps in the Selection ProcessProcess

Application or Application or ResumeResume

Initial Initial InterviewInterview

Reference &Reference &BackgroundBackground

ChecksChecks

Ability, Ability, Personality, Personality,

Interest TestsInterest Tests

Work Work SimulationsSimulations

Follow-Up Follow-Up InterviewInterview

Analysis and Analysis and Decision MakingDecision Making

--Reject-Hold-Offer JobReject-Hold-Offer Job

Medical &Medical & Physical TestsPhysical Tests

ReasonableReasonableAccommodationAccommodation

Notification ofNotification ofCandidatesCandidates

Recording ofRecording ofResults forResults for

Legal/ResearchLegal/Research

Follow-upFollow-upEnsure CandidateEnsure Candidate

Accepts OfferAccepts Offer


Techniques for Assessing ApplicantsTechniques for Assessing ApplicantsTechniques for Assessing ApplicantsTechniques for Assessing Applicants

PersonalPersonalHistoryHistory

ReferenceReferenceand Backgroundand Background

VerificationVerification

WrittenWrittenTestsTestsWorkWork

SimulationsSimulations

AssessmentAssessmentCentersCenters

InterviewsInterviews

Medical andMedical andPhysical TestsPhysical Tests

Pre-Pre-certificationcertification


Personal History AssessmentsPersonal History AssessmentsPersonal History AssessmentsPersonal History Assessments

Past behavior is a good predictor of future Past behavior is a good predictor of future performanceperformance

Application Blanks:Application Blanks: Use for minimum requirementsUse for minimum requirements Education and experience are important Education and experience are important

considerations for high-level jobs.considerations for high-level jobs. All application items should be relevant to All application items should be relevant to

job.job.


Personal History AssessmentsPersonal History AssessmentsPersonal History AssessmentsPersonal History Assessments

Biodata Tests:Biodata Tests: Ask about past and current activitiesAsk about past and current activities Responses of hundreds of respondents are Responses of hundreds of respondents are

correlated with performance, turnover, correlated with performance, turnover, customer service, etc. customer service, etc.

Tests are long and may appear unfair and Tests are long and may appear unfair and not job-relatednot job-related


Reference Checks and Reference Checks and Background VerificationBackground VerificationReference Checks and Reference Checks and Background VerificationBackground Verification

Reference VerificationReference Verification Verify that information on applications and Verify that information on applications and

resumes is accurate.resumes is accurate. Employers can hire outside investigators or Employers can hire outside investigators or

personally contact prior employers.personally contact prior employers. Not an infringement on privacy if job-related.Not an infringement on privacy if job-related. May be difficult to obtain information May be difficult to obtain information

because because previous employers fear defamation previous employers fear defamation lawsuits.lawsuits.


Ability Tests Ability Tests Ability Tests Ability Tests

Measure potential of Measure potential of individual to performindividual to perform

Types of abilities:Types of abilities: CognitiveCognitive

• Used by about Used by about 30% of employers30% of employers

• May result in May result in adverse impactadverse impact

PsychomotorPsychomotor PhysicalPhysical


Knowledge TestsKnowledge TestsKnowledge TestsKnowledge Tests

Assess what Assess what candidates know candidates know NOW!NOW!

Useful for jobs Useful for jobs requiring specialized requiring specialized or technical or technical knowledgeknowledge


Personality TestsPersonality TestsPersonality TestsPersonality Tests

Assesses the unique Assesses the unique blend of personal blend of personal characteristics that characteristics that define an individual define an individual and determine her or and determine her or his pattern of his pattern of interactions with the interactions with the environment.environment.

Big Five personality Big Five personality dimensions:dimensions: ExtraversionExtraversion AgreeablenessAgreeableness ConscientiousnessConscientiousness Emotional stabilityEmotional stability Openness to Openness to

experienceexperience


Integrity TestsIntegrity TestsIntegrity TestsIntegrity Tests

Can predict dishonest and Can predict dishonest and disruptive work behaviorsdisruptive work behaviors

Paper-and-pencil tests Paper-and-pencil tests have replaced lie detectors have replaced lie detectors which were banned as which were banned as selection tools by Employee selection tools by Employee Polygraph Protection Act of Polygraph Protection Act of 1988.1988.


Work Simulations (Work Samples)Work Simulations (Work Samples)Work Simulations (Work Samples)Work Simulations (Work Samples)

Applicants perform Applicants perform activities similar to activities similar to those required on the those required on the jobjob Difficult to fakeDifficult to fake More valid than More valid than

other methodsother methods Less likely than Less likely than

other methods to other methods to unfairly unfairly discriminatediscriminate

Expensive to Expensive to developdevelop


Assessment CentersAssessment CentersAssessment CentersAssessment Centers

Candidates participate Candidates participate in multiple assessment in multiple assessment techniquestechniques

Techniques simulate the Techniques simulate the job environmentjob environment

Candidates evaluated Candidates evaluated on multiple job on multiple job dimensionsdimensions

Costly, but Costly, but nondiscriminatory and nondiscriminatory and valid across culturesvalid across cultures

Typical Techniques:Typical Techniques: In-Basket exerciseIn-Basket exercise Leaderless group Leaderless group

discussiondiscussion Business gameBusiness game


InterviewsInterviewsInterviewsInterviews

Most widely used Most widely used selection procedureselection procedure

Structured and semi-Structured and semi-structured interviews are structured interviews are more valid than more valid than unstructuredunstructured

Structured interview Structured interview ensures the same ensures the same questions will be asked questions will be asked of all applicants.of all applicants.


Behavioral Job InterviewsBehavioral Job InterviewsBehavioral Job InterviewsBehavioral Job Interviews

Ask interviewee to Ask interviewee to describe specific describe specific instances of past instances of past behaviorbehavior Instance illustrates Instance illustrates

relevant relevant competencycompetency

Research shows Research shows past behavior is past behavior is best predictor of best predictor of future behavior.future behavior.

Ask interviewee to Ask interviewee to respond to respond to hypothetical job hypothetical job situationssituations Applicant may Applicant may

describe or role-play describe or role-play what she or he what she or he would do.would do.

Research shows Research shows behavioral behavioral intentions predict intentions predict behavior.behavior.


Guidelines for Effective InterviewsGuidelines for Effective InterviewsGuidelines for Effective InterviewsGuidelines for Effective Interviews

Give raters specific criteria and scoring key to Give raters specific criteria and scoring key to evaluate responsesevaluate responses

Use panel interviews for efficiency and Use panel interviews for efficiency and reliabilityreliability

Train interviewersTrain interviewers Minimize bias, first impressionsMinimize bias, first impressions Ensure job-relatedness and consistencyEnsure job-relatedness and consistency Provide frame-of-reference trainingProvide frame-of-reference training


The Americans with Disabilities Act The Americans with Disabilities Act and Medical Testsand Medical Tests

The Americans with Disabilities Act The Americans with Disabilities Act and Medical Testsand Medical Tests

General health exams can only be given after General health exams can only be given after a job offer has been made; before a job offer, a job offer has been made; before a job offer, it is illegal to inquire about disabilitiesit is illegal to inquire about disabilities Job analysis can support screening for Job analysis can support screening for

physical, sensory, perceptual, and physical, sensory, perceptual, and psychomotor abilities.psychomotor abilities.

Employers are expected to make Employers are expected to make “reasonable accommodations” for qualified “reasonable accommodations” for qualified candidates. candidates.


Medical TestsMedical TestsMedical TestsMedical Tests

Genetic ScreeningGenetic Screening Identifies individual’s risks of future medical Identifies individual’s risks of future medical

problemsproblems Controversial: Controversial:

• Restrictions at state levelRestrictions at state level• Federal legislation likelyFederal legislation likely

Drug and Alcohol TestingDrug and Alcohol Testing Permissible under ADAPermissible under ADA Uses urine, blood or hair samplesUses urine, blood or hair samples 6-8% of employees test positive6-8% of employees test positive


PrecertificationPrecertificationPrecertificationPrecertification

Employers form partnerships with schools and Employers form partnerships with schools and collegescolleges Employers provide accurate information on Employers provide accurate information on

job opportunities.job opportunities. Schools provide specific training Schools provide specific training

with state and federal funds.with state and federal funds.


Applicants’ Perspective of SelectionApplicants’ Perspective of SelectionApplicants’ Perspective of SelectionApplicants’ Perspective of Selection

Applicants judge fairness by:Applicants judge fairness by: Content of selection measuresContent of selection measures Administration of the selection processAdministration of the selection process Outcomes of the selection processOutcomes of the selection process


Legal Considerations in Legal Considerations in Selecting ApplicantsSelecting Applicants

Legal Considerations in Legal Considerations in Selecting ApplicantsSelecting Applicants

Laws and Regulations that Prohibit Laws and Regulations that Prohibit Discrimination:Discrimination: Title VII of the Civil Rights ActTitle VII of the Civil Rights Act Executive Order 11246Executive Order 11246 Age Discrimination in Employment ActAge Discrimination in Employment Act Rehabilitation ActRehabilitation Act Americans with Disabilities ActAmericans with Disabilities Act


Federal Guidelines and Federal Guidelines and Professional StandardsProfessional Standards

Federal Guidelines and Federal Guidelines and Professional StandardsProfessional Standards

Uniform Guidelines on Employee Selection Uniform Guidelines on Employee Selection Procedures (1978)Procedures (1978)

Other EEOC guidelines: Other EEOC guidelines: National Origin (1980)National Origin (1980) Age Discrimination (1981)Age Discrimination (1981) Religious DiscriminationReligious Discrimination Technical Assistance Manual on Employment Technical Assistance Manual on Employment

Provisions (ADA)Provisions (ADA)

Other Professional Standards:Other Professional Standards: American Psychological AssociationAmerican Psychological Association Society for Industrial-Organizational PsychologySociety for Industrial-Organizational Psychology


Legal Considerations: Typical Legal Considerations: Typical LawsuitLawsuit

Legal Considerations: Typical Legal Considerations: Typical LawsuitLawsuit

Person (plaintiff) alleging discrimination Person (plaintiff) alleging discrimination Files complaint with EEOC (Equal Files complaint with EEOC (Equal

Employment Opportunity Commission)Employment Opportunity Commission) EEOC investigates and attempts resolutionEEOC investigates and attempts resolution If plaintiff continues and files lawsuit, If plaintiff continues and files lawsuit,

he/she must demonstrate a prima he/she must demonstrate a prima facie case of discrimination.facie case of discrimination.


Prima Facie Cases of DiscriminationPrima Facie Cases of DiscriminationPrima Facie Cases of DiscriminationPrima Facie Cases of Discrimination

Disparate TreatmentDisparate Treatment Individual belongs to protected groupIndividual belongs to protected group Individual applied for job for which employer Individual applied for job for which employer

seeking applicantsseeking applicants Individual qualified but rejectedIndividual qualified but rejected Employer kept looking for people Employer kept looking for people

with applicant’s qualifications with applicant’s qualifications



Adverse Impact:Adverse Impact: Based on statistics from large number of Based on statistics from large number of

hiring decisionshiring decisions Focuses on consequences of selection Focuses on consequences of selection

practices, not employer’s intentpractices, not employer’s intent May be shown by audit of EEO-1 reportsMay be shown by audit of EEO-1 reports

Labor Market Comparisons:Labor Market Comparisons: Compare representation of group to the Compare representation of group to the

relevant labor market.relevant labor market.



80 (Four-fifths) Percent Rule:80 (Four-fifths) Percent Rule: Compare representation of group in applicant Compare representation of group in applicant

pool to representation among those hired, pool to representation among those hired, fired, promoted, transferred or demoted.fired, promoted, transferred or demoted.

Example of 80 Percent RuleExample of 80 Percent Rule Selection of firefighters with physical ability Selection of firefighters with physical ability

test:test:• 10% pass rate for women10% pass rate for women• 30% pass rate for men30% pass rate for men• 10/30 = 67%.10/30 = 67%.• This is less than 80% so there is evidence of This is less than 80% so there is evidence of

adverse impact.adverse impact.


Illegal DiscriminationIllegal DiscriminationIllegal DiscriminationIllegal Discrimination

Bases for defending discriminatory practices:Bases for defending discriminatory practices: Job relatednessJob relatedness Business necessityBusiness necessity Bona fide occupational qualificationsBona fide occupational qualifications Bona fide seniority systemsBona fide seniority systems Voluntary affirmative action programsVoluntary affirmative action programs


Legal Considerations for Global Legal Considerations for Global SelectionSelection

Legal Considerations for Global Legal Considerations for Global SelectionSelection

1991 Civil Rights Act confirms that American 1991 Civil Rights Act confirms that American civil rights laws cover U.S. citizens employed civil rights laws cover U.S. citizens employed abroad by American multinationalsabroad by American multinationals Foreign companies operating within the U.S. Foreign companies operating within the U.S.

must adhere to U.S. employment laws.must adhere to U.S. employment laws. There are exceptions (e.g. trade treaties) There are exceptions (e.g. trade treaties)

and this is complex area.and this is complex area.


Roles and Responsibilities for Roles and Responsibilities for SelectionSelection

Roles and Responsibilities for Roles and Responsibilities for SelectionSelection

Line ManagersLine Managers• Identify staffing needsIdentify staffing needs

• Help HR define Help HR define performance criteriaperformance criteria

• Help HR develop Help HR develop selection toolsselection tools

• Coordinate process Coordinate process with applicants and HRwith applicants and HR

• Administer some Administer some selection testsselection tests

• Comply with lawsComply with laws

• Provide accurate Provide accurate reference inforeference info

• Support ADASupport ADA

HR Professionals• Develop/choose reliable and valid selection tests

• Coordinate selection process

• Select and evaluate vendors of selection services

• Arrange interviews

• Train others involved in selection

• Keep records and monitor outcomes for legal compliance

EmployeesEmployees• Apply for transfers, Apply for transfers,

promotionspromotions

• Identify criteria for Identify criteria for evaluating performanceevaluating performance

• Interview/select new Interview/select new group membersgroup members

• Attend training in Attend training in selection processesselection processes

• Self-select into jobs Self-select into jobs that are good fitthat are good fit

• Inform managers of Inform managers of disabilities requiring disabilities requiring accommodationaccommodation

Documents

Chapter 8: Selecting Employees to Fit the Job and the Organization Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth