Selection for Fit, Recruitment and selection, HRM

4
“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).
5

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.
7

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.
9

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.
10

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.
12

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.
13

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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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RelationshipType
Talent Type
Long
Term
ShortTerm
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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RelationshipType
Talent Type
LongTermShortTerm
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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RelationshipType
LongTermShortTerm
Talent Type
Loyal Soldier
Internal/Cost HR
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.
23

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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RelationshipType
Talent Type
LongTermShortTerm
Loyal Soldier
Internal/Cost HR
Strategy
Bargain Laborer
External/Cost HR
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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RelationshipType
Talent Type
LongTermShortTerm
Loyal Soldier
Internal/Cost HR
Strategy
Bargain Laborer
External/Cost HR
Strategy
• Need for Organization &
Job fit
Expertise
Committed Expert
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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31
RelationshipType
Talent Type
LongTermShortTerm
Loyal Soldier
Internal/Cost HR
Strategy
Bargain Laborer
External/Cost HR
Strategy
• Need for Organization &
Job fit
Expertise
Committed Expert
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.
32

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.
33

Making Strategic Selection Decision
The focus is on two factors:
 Job-based fit
 Organization-based fit
34

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.
35
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

Making Selection Method Good?
38

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.
39

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.
41

COMMONLY USED
SELECTION METHODS
The three most common methods used are:
 Testing
 Gathering Information
 Interviewing
42

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.
44

*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.

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.

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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.

Selection for Fit, Recruitment and selection, HRM

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