16Week 3 Strategic Management and Strategic Competitiveness

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Week 3 Strategic Management and Strategic Competitiveness
Assignment
Student’s Full Name
Strayer University
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 3 Strategic Management and Strategic Competitiveness
Assignment
In this research paper, an Indian public corporation, BSNL, has
been chosen to describe its business in globalization,
technology, stakeholders, and overall performance. It is a public
company in India, and it provides services to individuals,
businesses, and households in telecommunications and
networking. It was established on October 1st, 2000, and has its

headquarters in Delhi. Bharat Sanchar Nigam Limited (BSNL)
is the company's official name. It primarily provides mobile-
related services, internet-based services, fixed-line, and digital
TV-based services. The company employs more than 63,966
people, controlled mainly by the Indian government. To keep
people in rural and urban India connected, BSNL offers various
specialized telecommunications services. To help its customers
run their businesses daily, it offers prepaid and postpaid
services. BSNL Corporation's goal is to become India's premier
telecommunications company, with a regional and international
presence in Asia-Pacific. We are committed to providing clients
with world-class telecom technology services at low pricing,
and we believe that this will have a positive impact on India's
economy. Some goals have been set by BSNL's management,
such as providing consumers with high-quality fixed services
and building their trust, being the leading supplier of GSM
services, and offering broadband services to more than 20
million Indians. Additionally, BSNL is attempting to achieve
the objectives of Indian government policy by better
understanding the long-term needs of Indian customers
(Buddhapriya, 2018).GlobalizationGlobalization has brought
numerous private sector businesses into competition with India's
state-owned BSNL Corporation, including Vodafone, Tata
Communications, RCom, and Airtel. BSNL has put a quality-
based telecom network for clients by linking rural and urban
digital network service-related programs for rural and urban
customers. It is currently BSNL's mission to improve the quality
of the country's telecom network, extend the network, provide
new telecom services with ICT applications in rural areas, and
retain the loyalty of its customers. Since its inception, it has
made an effort to reach all corners. A total of 8.90 million
broadband service subscribers are taking advantage of BSNL's
broadband services. BSNL has maintained its telecom monopoly
in India by generating a competitive advantage over its rivals by
accurately structuring its workforce and enhancing customer
satisfaction (Othman et al., 2020). Maintaining complete

transparency in the billing system is a major factor behind the
recent growth in customer traffic for BSNL Company's newest
technology. It has added more than 20,000 new clients in India
monthly. TechnologyAs a result of the rollout of 3G, 4G, and
5G services, the BSNL Company has benefited from the latest
technological innovation. More ports, faster data transmission
via optical fibers for customers, and improved infrastructure
built with next-generation networks are just a few of the value-
added services that BSNL is offering as part of its business
strategy. For several years, the BSNL Company has been
fiercely competing with commercial telecom operators in India's
rural and urban markets because of its superior services. To
enable its clients to converse and send messages, MTNL, a
subsidiary of BSNL, has offered landline services to the
citizens. BSNL has improved its broadband services to suit the
needs of the third generation with superior mobile-based
cellular networks, producing enormous customer traffic and
earning revenues to a much greater level through the many uses
of technological advances. In India, BSNL Corporation provides
Wi-Fi services to customers at their homes and offices to better
manage their work (Pal, 2019).Industrial Organization Model
Since globalization, the telecom industry has been the most
competitive market. As technology in the telecom business has
advanced, BSNL has continued to provide its clients with better
service, ensuring more satisfaction. With the help of ATM card
capabilities, debit cards, and credit cards, the BSNL Company
has set up customer service centers where clients may pay their
bills, acquire prepaid vouchers, and learn about tariffs. A top-
rated service supplied by BSNL Company is the Sanchar net
service, which the company established. This corporation has
some properties, including factories located around India in
places like Kolkata, Kharagpur, Bhilai, and Ranchi, amongst
other locales.Resource-Based ModelWhen it comes to how
BSNL has been making above-average returns, the resource
model relies on the fact that it has been expanding its customer
base. The BSNL Company's revenue maximization approach has

conquered the untapped Indian telecoms market. Efforts to
modernize technology, organizational structures, and how
services are delivered resulted in better customer results.
BSNL's income leakage is being handled by adopting remedial
steps, such as requesting that consumers pay their invoices on
time.Fraud, unethical behavior, and illegal actions are not
tolerated in its operations to provide a transparent business
model to its many stakeholders, such as consumers, workers,
banks, law enforcement agencies. Bills may be generated more
quickly thanks to the CDR billing system, which BSNL has
been working hard on developing. According to various telecom
industry requirements, it has devised acceptable marketing
techniques for boosting its business. As BSNL continues to
extend its landline and mobile services in India, it has spent
more than $4000 million to do so. It has been cutting its
administrative expenditures to increase its market reach
significantly. As a result, the company's operations have been
adversely affected by changes in the global business climate in
terms of technology. Because of the resources employed by
BSNL Company, it has generated earnings above the industry
average (Prasad, 2016).Vision
By clearly articulating each stakeholder's demands, the
organization's mission statement has impacted its stakeholders.
It is a result of BSNL's ethical image and commercial growth
that all stakeholders have faith in its ethics and success.
Stakeholder satisfaction is critical to BSNL's goal of being the
world's largest telecommunications provider. Aiming to improve
stakeholders' performance like BSNL workers, the company is
training and enlisting its stakeholders to cut costs and increase
profitability from its operation. According to research,
employee productivity has been shown to correlate with the
company's stated goal and vision.
MissionAccording to the BSNL Company's mission statement,
its revenues are also distributed to its staff, serving their clients
better. Employees' career aspirations are aligned with BSNL
Corporation's strategic priorities to increase productivity and

revenues. Thanks to their hard work, workers at BSNL helped
the company gain third place in terms of Internet users behind
China and America.Stakeholders
Corporations are responsible for providing for their economic
well-being and helping those less fortunate in their
communities. To gain a foothold in India's telecom industry,
BSNL Corporation's stakeholders have been depending on the
company's operations and investing heavily in developing new
service offerings. With increasing trust in BSNL's performance,
the company strives to satisfy its shareholders' expectations by
delivering excellent performance and exceeding expectations.
When it comes to creating improved financial reports that can
be shared with all stakeholders, financial and legal authorities
have been an invaluable resource for BSNL. Employees have
been provided with a work environment that encourages them to
perform high (Prasad, 2016).
Since its inception, the BSNL Corporation has been responsive
to the needs of its customers by introducing innovative products
and services. BSNL Corporation has exceeded the customers'
expectations. As a result, the company's contact centers, metro-
based telecom offices, and the introduction of high-speed
internet services like 3G and 4G have helped to elevate BSNL
to the position of the finest telecommunication company. It
saves customers time to pay their bills online using ATM or
debit cards. With the support of BSNL Corporation's low -cost
services, more customers are taking advantage of the company's
offerings by signing up for new services (Srivastava &
Shainesh, 2015). As a result, the BSNL Corporation's total
success has been positively influenced by consumers regularly.
Strategic partnerships were formed by merging with MTNL to
focus on revenue maximization methods by decreasing costs and
constructing a lucrative business model that effectively meets
the expectations of all stakeholders on a timely basis. A better
company model is built by satisfying the expectations of all
stakeholders.
References

Agarwal, P., & Sajid, S. M. (2017). A study of job satisfaction,
organizational commitment, and turnover intention among
public and private sector employees. Journal of Management
Research, 17(3), 123-136.
Othman, B. A., Harun, A., De Almeida, N. M., & Sadq, Z. M.
(2020). The effects on customer satisfaction and customer
loyalty by integrating marketing communication and after-sale
service into the traditional marketing mix model of Umrah
travel services in Malaysia. Journal of Islamic marketing.
Pal, S. K. (2019). Changing technological trends for E-
governance. In E-governance in India (pp. 79-105). Palgrave
Macmillan, Singapore.
Prasad, L. (2016). Synergizing functional effectiveness and
organizational performance for economic growth–The role of
the leader. RIMS Journal of Management, 2(2), 24-37.
Srivastava, S. C., & Shainesh, G. (2015). Bridging the service
divide through digitally enabled service innovations. Mis
Quarterly, 39(1), 245-268.
Chapter 5
Aids for Recruitment and Selection
Bernard O’Meara
Chapter Learning Objectives
After reading this chapter and undertaking the review questions
and case study
you will:
• Appreciate the range of recruitment and selection aids
available

• Understand the roles that these aids play
• Determine the most appropriate aids for specific
circumstances
• Ensure reliability and validity are appropriate
• Be able to identify potential areas of discrimination
• Build equity and fairness into appropriate processes
5.1. Recruitment and Selection Aids
In order for recruiters to identify the most appropriate applicant
for a position, they
need to use a variety of aids. These aids are used to confirm
information gained
from résumés and application forms as well as material from
interviews. This should
provide a good insight into each applicant as different
perspectives are considered.
The aids should complement each other and collectively give
the recruiter a better
holistic perspective of each applicant. Each component of
recruitment and selection
needs to be weighted rather than full reliance on one aspect
such as an interview.
An interview and the results of participating in an assessment
centre may each be
weighted at 40%, with the remaining 20% divided between
objective confirmation
of past performance (reference checks) and interaction with
team members the
applicant will work with.
These aids can include any form of testing, trial or probationary
period, atten-
dance at assessment centres, the use of game theory or any other

methods that help
to objectively assess the strengths of applicants.
The Handbook of Strategic Recruitment and Selection: A
Systems Approach
Copyright r 2013 by Emerald Group Publishing Limited
All rights of reproduction in any form reserved
ISBN: 978-1-78052-810-6
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EBSCO Publishing : eBook Academic Collection (EBSCOhost)
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MARYLAND GLOBAL CAMPUS
AN: 683413 ; Bernard O'Meara, Stanley Petzall.; Handbook of
Strategic Recruitment and Selection : A Systems Approach
Account: s4264928.main.eds
Interviews can be flawed due to bias, incorrect interpretation of
replies to ques-
tions, body language, incomplete questioning techniques and by
using inexperienced
interviewers. Similarity-attraction theory suggests that
interviewers will select those
candidates with the personality, traits, interests and values
closest to themselves.
Thus interviews alone do not capture the whole person
(Roebken, 2010).
Recruitment and selection aids can confirm or refute
information gathered about
candidates or they can provide new and different perspectives
that interviews alone
would not expose. Candidates will be drawn from different
organisations, different
communities and may have quite different personalities. Thus
strategic decisions
about reinforcing or challenging existent culture need to be

thoroughly considered
in order to appoint the right person for the right reasons.
Staff within the organisation need to understand the rationale
for using a variety
of aids to appoint applicants. They also need to have confidence
in the processes
and trust the judgment of the interviewers. The processes need
to be transparent,
defensible and agreed upon. The applicants also need to
understand the different
components of recruitment and selection aids and how these are
used.
If the image of the organisation is that it empowers staff and
involves them in
decision making and provides growth opportuni ties, then the
organisation will
attract people who embrace these ideas. Applicants will expect
recruitment and
selection aids that allow them to demonstrate these capacities.
Recruiters need to
have a purpose for each aid they use in recruitment and
selection and complement
other components (Kausel & Slaughter, 2011).
Recruitment and selection aids can take many forms. Employer
branding and
image have been discussed previously; however, creating the
right image of the orga-
nisation for current staff and the community is a legitimate
means of becoming a
preferred employer of choice (Mandhanya & Shah, 2010).
Members of the community who are attracted to the
organisation because of its

branding, image or identity will apply for positions once it is
known that vacancies
exist. It can also lead to people delivering their résumés to the
organisation (walk-
ins) as a means of communicating to the organisation their
interest in working there
despite an absence of vacancies.
The standing and reputation of an organisation will create a
larger pool of
applicants where these are positive. However, if the reputation
of the organisation is
not strong then a smaller applicant pool may be expected,
probably with more
unsuitable applicants applying.
5.2. The Role and Purpose of Testing
One frequently used aid is testing. The term testing covers a
very broad range of
tools that help give an insight into candidates. Organisations
use talent management
systems to store detailed information about staff. The profile of
staff allows the
organisation to plan ahead and develop their staff accordingly.
The software sys-
tems can integrate different components of other data storage
systems and this pro-
vides an excellent overview of the talent in the organisation and
how it is being
developed.
132 Bernard O’Meara
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The emphasis on talent has caused large organisations to rethink
the role of
recruitment and selection, personnel and human resource
managers. The title Talent
Acquisition Manager/officer is now widely used to emphasise
the importance of this
role to the organisation and its future. Other titles such as
Knowledge Acquisition
and Retention Managers are also growing in popularity. These
changes in title recog-
nise the impact that recruitment and selection have upon
organisations.
Pre-employment tests can provide specific information that
interviews and
résumés cannot. A significant number of résumés contain
inaccurate information as
job seekers attempt to market themselves in the best way
possible. With high levels
of unemployment, job seekers attempt to differentiate
themselves from other job
seekers, and in doing so omit some details or exaggerate others
such as job title,
responsibilities and salary (Van Steenwyk, 2008).
The introduction of Freedom of Information (FOI) legislation
across the globe
means that employers are reluctant to comment on the
performance of previous
staff. This feedback may be sought by applicants who are
unsuccessful in applying
for a position. Instead employers are more inclined to confirm

information given by
applicants, such as duties associated with jobs, dates of
employment, and avoid
areas where interpretation or judgment are sought.
Interviews are also flawed but are still the most widely used
employment tool.
However, interviewer bias and applicant nervousness can lead
to a misinterpretation
of the information given by applicants. In order to offset the
flaws involving
résumés and interviews, employers use various forms of testing
to gain a better
insight into the ‘fit’ between applicants and an organisation.
Large organisations not only want reliable and consistent tests
but they
want tests that can be used anywhere around the world where
they operate. Pre-
employment tests need to be effective, efficient and ‘applicant
friendly’. The overall
purpose for tests is to aid in deciding who the best applicant is.
Online testing can be linked directly to talent management
software within the
organisation to create an individual profile of applicants. The
online tests can be
competency oriented to determine levels of expertise in
undertaking a task, reason-
ing through a problem, determining client focus of applicants as
well as aiding in
the appointment of executive staff (Frauenheim, 2011).
However, some tests are cultural specific and are less valid as
predictors of per-
formance in all sectors of the workforce or other countries. This

means that global
organisations use different tests in different countries in order
to reduce bias and
inaccuracy. Online tests which are consistent and reliable allow
organisations to use
a standard test bank that, ideally, can be used to predict
performance accurately,
irrespective of country bias, or help determine the degree of fit
between an organisa-
tion’s culture and applicants.
5.2.1. Psychometrics
Psychometric testing refers to any standardised test that
attempts to measure or
assess a person’s cognitive ability or aspects of their
personality. However, the need
to measure or assess cognitive capacity and personality should
be work related and
Aids for Recruitment and Selection 133
is necessary. These are conducted by staff or consultants with a
specialisation in
psychology in order to ensure the metrics are accurately
interpreted and are job
relevant.
The term ‘metric’ is used as this refers to something that can be
measured while

the term ‘psych’ refers to the psychological make-up of an
individual. In order to
gain a clearer insight into applicants, organisations attempt to
measure aspects to
determine if a short-, medium- and long-term fit can be
achieved.
External applicants are drawn from other organisations and their
community,
and it is their cumulative life story and achievements that
organisations try to mea-
sure in their applicants.
When applicants apply for a position they bring with them many
attributes, per-
sonal and professional achievements, knowledge, experience
and aspirations.
Some of these can be assessed during interviews or by past
performance. An edu-
cational qualification indicates an applicant has achieved a
certain level of educa-
tion and is readily identified. Other applicant attributes are not
as easily identified,
however discrimination must be avoided at all times.
Applicants may bring the following background and
characteristics with them:
Education — The level of education can be determined by the
level achieved, such
as secondary college or university certificates, diplomas,
degrees and higher
degrees. This illustrates the standard achieved but does not
indicate if the appli-
cant can apply the concepts learnt, nor does it reflect the

potential of the appli-
cant to undertake higher levels of education.
Work experience — Where an applicant has work experience,
interview questions can
be used to probe the depth of understanding the applicant has of
the role. Previous
promotions may indicate the applicant has the potential to be
promoted further.
However, while an applicant may have been promoted in
previous roles, employers
need to know what it was that made the applicant successful,
i.e. levels of com-
mitment, motivation, enthusiasm, luck or something else.
Previous success is not
always a predictor of future success, and job testing may be
considered to deter-
mine the suitability of an applicant.
Life experience — As people gain new experiences, they learn
from these and grow
as individuals. Spending a year on an exchange program in
another country may
not at first appear work related.
However, it may indicate the desire for mobility, cultural
diversity and appreciation,
independence and the desire for personal and professional
growth and challenge.
These aspects may be dealt with during interviews or reference
checks, or they
may be difficult to determine because the applicants may not
necessarily be aware
of their personal drive.

Achievements — Throughout their lives people will achieve
many things, some of
which are clear while others are not. Consistent achievements in
education, work
life, sporting activities, community service and other areas may
indicate drive
and an achievement-oriented individual.
Thus organisations seek to determine the level of achievement
across the applicant’s
life — both personal and professional — to gauge consistency.
Reviewing
achievements in a person’s work life only does not show
consistency and tells
only half a story.
Graduates entering employment in their chosen career path may
lack work experi-
ence but have several educational, sporting and other
achievements that indicate
their true potential.
Expectations — Everyone has expectations to some extent.
These can be developed
by work and life experiences, or by the wording of job
advertisements, feedback
through social media or from discussions with family, friends,

acquaintances and
colleagues.
All people will want to be treated with dignity and respect.
Many will seek ample
wages and salaries, recognition, challenging work, promotion
opportunities.
Some will not want promotion or an increase in authority or
responsibility.
However, the degree of fit between the organisation and
applicants can, in part, be
determined by accurately identifying and understanding the
expectations of both
parties. This can be difficult if a person is appointed to a
position that will lead
to promotion, then later the organisation finds that the person is
not fit for pro-
motion into the desired position.
Organisations also try to match applicants to their:
• Culture
• Structure
• Orientation or view of staff as assets or liabilities
• Known competency or knowledge gaps
• Strategy and future direction
• Wage and salary policies
• Cost structure
• Environment
• Talent bank
In the case of small organisations, only very basic information
about applicants
may be sought and even an intuitive approach used. However, in
large organisations

and those involved in highly competitive markets, the
investment in staff is signifi-
cant and essential.
These organisations can fit new employees into their talent
banks, include
them in succession planning and create individual career maps
to optimise the
potential of each new staff member. These organisations build
success and sustain-
able competitive advantage through a mutually beneficial
relationship with their
staff.
5.2.2. Types of Tests
There are a variety of psychometric tests available. These are
administered by quali-
fied psychologists who understand the role and purpose of such
tests and the
terminology associated with them. However, a number of
consultants train staff the
use of some tests which can be administered by non-
psychologists.
Personality and traits — Each person has a level of
commitment, drive, motiva-

tion and enthusiasm, values and belief systems that they have
developed throughout
their lives. These are more difficult to assess via interview
questions and reference
checks unless the applicant has a reputation for these attributes
or is known to the
organisation.
There are people who lack confidence and therefore frequently
seek a supervisor
to verify the accuracy or quality of their work. Others may
prefer minimal supervi-
sion or intervention. Some people work well in teams while
others may prefer to
work alone.
Also the interpersonal and communication skills of people will
vary. In terms of
fit between applicants and an organisation’s culture, structure
and strategic impera-
tives decisions will need to be objectively made about each
applicant’s suitability. A
trait is a constant characteristic of an individual.
The assessment and understanding of personality is just as
challenging as the
assessment of cognitive capacity. An organisation may seek to
appoint a marketing
manager with a very sociable manner who will be expected to
entertain clients. This
may be a higher priority than attention to detail or financial
prowess.
The assessment of personality solely through the lens of
interviews is severely lim-
ited. It is also subjective and must be work related. Personality

may be impacted by
health, recent severe events such as deaths in an applicant’s
family and at times may
vary to suit specific situations. However, some traits are
entirely consistent.
Throughout the recruitment and selection stages, organisations
try to gain as
much information as possible about the applicants in order to
match them against
the position’s selection criteria (performance factors or
knowledge, skills, and other
attributes and competencies). For highly competitive
organisations, this means gath-
ering data including the aspects listed above.
Personality traits can include the following:
• Cooperativeness
• Dominance
• Original thinking
• Socialisation
• Flexibility
• Responsibility
• Conscientiousness
• Tolerance
However, while a number of personality inventories exist, a
large amount of testing
revolves around the Big Five Personality Characteristics
Inventory. These include:
• Extroversion
• Agreeableness
• Conscientiousness
• Emotional stability

• Openness to experience
This particular inventory condenses the range of traits to those
considered critical
to the workplace. This instrument takes about 45 minutes to
complete but needs to
be interpreted by a qualified psychologist (Gatewood & Feild,
2001).
However, Gurven, von Rueden, Massenkoff, Kaplan, and Vie
(2013) found that
when the five factor model was applied to non-traditional areas
such as forager-
farmers, the model was not consistent and could not be applied
universally. The
effects of culture and socioeconomic background have an
impact.
Research by Arthur, Woehr, and Graziano (2001, p. 671) also
argue that:
Several distinctive characteristics of personality testing raise
impor-
tant conceptual, methodological, and practical questions. A
general
implication is that personality assessment and testing in
employment
contexts is more complicated than it would appear. Practitioners

and
researchers must be cognizant of these issues in the application
of per-
sonality tests to employment decision making.
The use of personality testing must be justifiable, non-
discriminatory and well-
considered if they are to be used as reliable predictors of job
performance. An
appropriate weighting must also be given to them. However,
other tests are more
job specific and accurate predictors of performance.
People will react differently depending upon the situation they
find themselves in.
In an interview setting, applicants may act as they believe the
interviewer expects
them to act. In this instance the interviewer needs to determine
the superficial role
being played from the core traits of the individual.
This takes exceptional competence, and unskilled interviewers
may well misinter-
pret the individual’s situational response and assume that the
traits being displayed
are core traits. Hence, qualified psychologists can play an
important role in assisting
organisations gain a true insight into the personalities of
applicants.
As people will often act as they believe they are expected to act
when seeking
appointment to a position, many organisations are surfing social
media websites to
get a better indication of how staff and potential staff really act.
People often say

candidly what they think on social media sites.
The use of social media can complement personality and
cognitive assessment or,
in some cases, replace it. Because the investment in staff can be
substantial, employ-
ers need ways to ensure they choose wisely. However, poor
behaviour on a social
media website does not mean the applicant or employee will
bring such behaviour
to the workplace, and discrimination needs to be avoided in
favour of objectivity
and fair mindedness.
5.2.3. Cognitive Capacity/Ability Tests
Each individual has a different level of intellect and only a very
basic assessment of
this can be made during interviews. Reference checks may not
be helpful if the
applicant’s current employer ‘helps’ the person leave their job
and go to another
employer because they are not currently successful in their
present job.
Also, previous achievement in challenging positions may
indicate a level of cogni-
tive capacity but it does not predict the effective use of this

capacity or the attain-
ment of a higher level of cognitive capacity in the future.
These tests can be referred to by many names: cognitive
capacity tests, cognitive
ability tests, mental ability tests, intelligence tests or IQ tests.
Each person has a
range of cognitive abilities which can be measured by separate
tests designed to
measure these abilities in individuals. An individual score can
be achieved by indivi-
duals undertaking a test designed to measure a specific ability.
The score is then compared to other normative scores to
determine where this
person’s score fits compared to others. Thus a person’s
individual score can indicate
if they are above average, below average or average when their
score is compared to
the broader populace.
However, Gardner and Deadrick (2012) conducted research on
cognitive ability
tests and found that when differential validity (difference
between subgroups and
the relationship between performance predictors and selection
criterion) was applied
to these tests they disadvantaged African-American and
minority applicants com-
pared to Caucasian applicants.
General cognitive ability tests attempt to measure a range of
these abilities simul-
taneously and combine to form an overall score derived from
the individual scores
achieved. The overall score can also be compared to a known

range of scores to
determine where the applicant’s score fits compared to others.
Gatewood and Feild (2001, p 571) list some of the abilities
measured by cogni-
tive-based tests. These include:
• Conceptual classification
• Conceptual foresight
• Figural classification
• Figural identification
• General reasoning
• Intuitive reasoning
• Logical evaluation
• Memory span
• Numerical fluency
• Ordering
• Semantic relations
• Spatial orientation
• Verbal comprehension
• Visualisation
These cognitive abilities are all different to each other, and
before the correct test
can be identified for use in recruitment and selection it must be
determined what
needs to be measured and why it relates to the job.
A young graduate with a bachelor’s degree has already shown
that his or her
cognitive abilities have been stretched by achieving a university
degree. This may
indicate a base level for an applicant, and organisations may
test the person to

determine how far above this level the person’s abilities can
take them. This may
indicate their future promotability.
An organisation would want a manager who understood
concepts and could rea-
son through issues as they arose. A manager would also need to
recognise semantic
nuances and have strong verbal comprehension competencies.
Global-based organisations may seek staff who appreciate
cultural diversity and
the positive role it can play. They may seek staff who can
analyse data and evaluate
the potential of new markets, plan and sequence activities to
give the organisation
its competitive advantage.
However, as O’Meara and Petzall (2007) point out, in the
Australian higher edu-
cation sector, potential university CEOs are not tested at all.
Instead applicants are
judged on their previous experience and perceived contribution
to previous universi-
ties, and this is used as a basis for selecting candidates. Initial
interviews with selec-
tion panels last, on average, 45 minutes.
Applicants may also be required to address the university

executive and its board
or council and be judged on their mental agility and ability to
respond to questions
posed and their ability to articulate a vision for the university.
In this instance, tests are not seen as providing any greater
insight into appli-
cants. The recruitment and selection strategy includes activities
that require appli-
cants to demonstrate their cognitive abilities rather than
measure them via testing.
There are alternatives to formal testing but their reliability
varies.
Mechanical ability tests can be given to technicians, fitters and
turners, mechanics
and those designing, building and maintaining machines to
determine their level of
technical competence as well as their ability to think through
solutions to problems.
Thus, some testing can focus specifically on areas such as
machinery while others
can be used to assess competencies and personal traits.
5.2.4. Graphology
A unique form of assessment is the use of graphology — the
systematic analysis and
study of handwriting. Graphology has been used to identify
health issues of the wri-
ter, hidden potential, career counselling and assessing
personality compatibility. The
analysis is based on 300 different handwriting characteristics,
such as the size of the
writing, slant, shape, letter width, links, loops, page layout and
the writer’s pressure

on the paper (King, 1998).
A review of The British Institute of Graphology (TBIG) (2013)
website
shows areas related to recruitment and selection as being used
for determining
career choices, management development, personal
development, recruitment, pre-
interview screening and integrity/security assessments.
Graphologists will ask an applicant for a brief one-page written
self-description
during an interview and use this as a part of his or her
evaluation. While Brody
(2010) argues that there is no scientific evidence for the use of
graphology, he sug-
gests that those wishing to evaluate the use of graphology in
selection practices
should not weigh the outcomes too highly. He suggests that
selectors should be
extremely cautious about using the results of graphology.
All strategic recruitment and selection aids need to be
considered on their merits.
The psychology of graphology suggests that people express
themselves by the con-
tents of their written material as well as the way they write. A

common example of
this is where an angry or frustrated person pushes the pen
harder into the paper
rather than flow over it smoothly.
5.2.5. Situational Judgment Tests
Situational Judgment Tests (SJTs) are relatively easy tests to
administer and score
and used in management, supervisory and graduate recruitment.
Applicants are
given a problem to analyse as well as a number of possible
responses to the problem
from which they choose the best option or are asked to rank the
possible responses.
Because they are based on plausible situations that applicants
may have encoun-
tered or could encounter, they are more readily accepted by
managers and
applicants.
Salter and Highhouse (2009, pp. 392�393) use the following
example developed
by Weekley, Ployhart and Baughman (2006):
One of the people who reports to you doesn’t think he or she
has any-
where near the resources (such as budget, equipment, and so on)
required to complete a special task you’ve assigned. You are
this per-
son’s manager.
Possible responses include:
• Tell him/her how he/she might go about it
• Give the assignment to another employee who doesn’t have

the same objections
• Tell the person to ‘just go do it’
• Ask the person to think of some alternatives and review them
with you
• Provide the employee with more resources
The SJT is different to hypothetical questions used in interviews
and/or assess-
ment centres.
Instead they use empirically keyed standardised response
alternatives developed
in the item development stage. While there is debate as to what
SJTs actually mea-
sure (common sense, good judgment and so on), there is
evidence supporting the
use of these as predictors of future job-based performance.
Assessors can contrast questions such as What would you do in
this situation?
With deeper questions such as What should you do in this
situation? The latter ques-
tion may allow an insight into applicants’ thought processes,
predicted behaviour,
priorities and personal values as applicants explain the rationale
for deciding what
they should do.

5.3. Reliability and Validity
The concepts of reliability and validity were raised in Chapter
3. While these con-
cepts need to apply to all aspects of strategic recruitment and
selection such as inter-
views and even question types and techniques, they are
especially relevant to all
types of assessment tools (testing). Reliability and validity
allow psychologists and
HR practitioners to confirm that tests being administered are
appropriate and assess
what they are supposed to assess.
5.3.1. Reliability
In terms of staff selection, Gatewood and Feild (2001, p. 115)
refer to reliability as
‘the degree of dependability, consistency or stability of scores
on a measure (either
as predictors, criteria or other variables) used in selection
research’.
Whenever an assessment tool is used, the staff administering the
test need to
have confidence that it consistently measures the same criteria
in all applicants.
Reliability also means that if applicants are retested then the
same or similar results
should be achieved. If reliability is not possible then the
assessment tool is unreliable
and may give inaccurate results. Its use may then be
inadvisable.
Reliability can be estimated, and at a basic level an assessment
tool may be high,

medium or low in reliability. Psychologists and statisticians
calculate the reliability
of tests and errors of measurement prior to their release for use.
Errors may impact the reliability of assessment tools and the
source of errors
considered. The reliability may vary between geographic
regions and countries and
reflect different work patterns, cultural and ethnic variations,
levels of experience,
areas of expertise and education. Research shows that applicants
often try to manip-
ulate the outcome of tests by positing what the assessor or
organisation would deem
to be an ‘ideal employee’ and answer test questions
accordingly. Those able to dis-
cern critical performance criteria are better able to portray
themselves via test
responses as the ideal employee (Klehe et al., 2012).
At a pragmatic level, sources of error can be caused by
interviewer’s perception or
by the applicant’s mental and physical health, mood, levels of
motivation and stress.
Applicants may not fully understand how they are required to
complete a selection
aid or may find environmental issues such as heating, cooling,
seating, noise and
interruptions distracting, resulting in low levels of reliability
(Gatewood & Feild,
2001, p. 122).
In this case a comparison between an applicant’s interview
outcomes and an
assessment tool results may give conflicting perspectives.
Where there are variations

in expected or actual outcomes, the sources of these errors need
to be identified
wherever possible and the results reconciled. In respect to
differences in age and
cognitive ability tests, Brough et al. (2011) found that older
staff were as cognitively
competent as younger staff. The impact for ‘Boomerangers’,
those older people
returning to the workforce after retirement, meant that their
cognitive abilities were
not substantially lower than their younger colleagues.
Hence in recruitment and selection a variety of tools need to be
used in order to
confirm or refute the outcomes of other tools such as
interviews, reference checks,
assessment centres, trial periods and testing. Each tool or aid
needs to be appropri-
ately weighted.
Thus interviews or testing are weighted too highly but may be
weighted similarly
when they are used to assess the same applicant criteria.
Criteria to be assessed arise
from job analysis and competency profiling which needs to be
extremely accurate,
as it forms the basis of assessing applicant suitability and
matching applicants with

the organisation’s strategic direction.
Also, where tests are used to predict the applicant’s suitability
and capability to a
job and its organisation, multiple approaches need to be used in
order to ensure the
reliability of the data. Given the cost of recruitment and
selection as well as their
impact on organisational performance, it is sensible to confirm
applicant’s suitabil-
ity by a variety of means.
Other assessment aids include feedback from the applicant’s
colleagues, different
but similar tests, observation, completing a diary, asking
applicants to write about
themselves, i.e. essays about their lives, priorities, work
history, work ethics, aspira-
tions, motivators and so on.
However, the use of more subjective types of assessment
introduces the subjectiv-
ity of the rater or scorer or interrater reliability. An assessor
using subjective means
of assessment uses his or her own subjectivity to interpret the
results, and this can
contaminate the objective reliability of the assessment
outcomes. This provides
another reason to use multiple assessment tools.
5.3.2. Test-Retest Reliability
In an ideal situation if a person scored an outcome in a test and
then was retested
some time later, then the two scores should be identical — in an
ideal situation.

However, in reality, the closer the outcomes the higher the test
reliability.
Factors that can influence the test-retest reliability outcome
include:
• Sufficient time has passed so that a person’s memory of the
test does not affect
the test-retest reliability
• Determining if no significant event has occurred to the
applicant that might affect
him or her between the test and retest
• When only one item has been measured and it is appropriate to
retest the applicant
The test-retest reliability may be important to measure stabili ty
over a period of
time, especially where organisations need consistency when
measuring across large
numbers of applicants.
5.3.3. Interrater Reliability
In most cases the interpretation of applicant tests are scored
objectively. On other
occasions the rater must use his or her own judgment and in
doing so introduces

bias. In the case of interviews and observers, multiple raters are
used to offset the
bias introduced by other raters and to assess the degree of
objectivity.
In the case of interviews, the use of a panel interview allows for
the assessment of
the level of objectivity and bias used. This helps the
organisation to reduce bias as
much as possible along with discrimination and to ensure the
interview is as legally
defensible as possible.
5.3.4. Parallel-Test Reliability
Another way of measuring reliability is to administer two
different tests. However,
each test must:
• Have the same number and types of items
• Have the same level of difficulty
• Have the same averages and standard deviation scores
Once the reliability and equivalence are confirmed between the
tests, then tests
can be administered at any time. Parallel forms of test
reliability are not common,
but once determined they can be used sequentially or only one
test administered.
5.3.5. Internal Consistency
Gatewood and Feild (2001, p. 129) refer to internal consistency
as ‘…the extent to

which all parts of a measure (for example items or questions)
are similar in what
they measure… A high estimate of internal consistency suggests
that respondents’
answers to one part are similar to their responses on other parts
of the measure’.
However, a measure where applicant responses do not affect
responses to other
questions is not internally consistent. Internal consistency
means that each part of
the test is interrelated and, therefore, if an applicant can answer
one part, he or she
should be able to answer other parts effectively.
5.4. Validity
It is possible for an assessment tool to be reliable but not
actually measure what it is
supposed to measure. High levels of reliability do not
necessarily lead to high levels
of validity. Validity refers to the inferences that can be made
from the scores on a
test or measure, and different inferences can be made regarding
a criterion
(Gatewood & Feild, 2001, p. 162).
A job analysis may suggest that applicants with certain
characteristics are more
desirable in a job than those without them. An inference may be
made that this is
the case but it cannot be proven. An inference can be made
regarding each criterion
identified through job analysis but these need to be verified as
accurate and neces-
sary — they need to be valid (Arnold, Silvester, Patterson,

Robertson, Cooper, &
Burns, 2005, p. 151).
5.4.1. Criterion-Related Validity
One of the most common forms of validity is criterion-related
validity. This refers
to the degree of accuracy between a criterion and the predictive
capacity of the
assessment tool being used. Criterion-related validity is high if
applicants achieve
high scores on a predictor assessment, and once employed or
when completing simi-
lar tests or tasks also achieve high criterion performance, while
the reverse is
also true.
Such a strong correlation between high predictor scores and
high actual perfor-
mance infers high validity of the test. The test accurately
predicts performance of
applicants and measures what it is supposed to measure.
The level of validity is expressed as a coefficient with the
number one expressing
perfect or ideal validity and the number zero indicating no
validity at all. The higher
the coefficient, the higher the level of validity; where

organisations use such testing
through consultant or in-house psychologists it is wise to know
the level of reliabil-
ity and validity prior to approving their use as predictive tools.
A job description for an Information Technology manager may
state that the
successful applicant must be familiar with such technology and
be able to quickly
and effectively analyse and resolve disruptions when they
occur. This criterion can
be assessed by reviewing applicants’ employment history,
feedback from their col-
leagues, their qualifications, or by getting them to outline their
approach to resol-
ving problems during interviews.
Where management experience is required to successfully
undertake the role,
interviewers may ask situational questions such as ‘tell me how
you have resolved
disruptive issues previously?’ As a complement to other tools ,
applicants could be
asked to undertake problem-solving or cognitive ability tests to
determine if they
can think creatively and quickly where necessary.
The results of such tests can be viewed in relation to responses
to interview ques-
tions, record of previous work history and achievements and
feedback from collea-
gues. Other tests specific to the role may be conducted as well.
Where there is
consistency and the successful applicant fulfils the role
effectively, the measure of
the criteria is higher.

It is sensible to ensure that only properly researched tests with a
proven record of
high levels of reliability and validity are used in recruitment
and selection strategies.
Sources of error should be discussed and minimised as much as
possible and tests
should only be administered and interpreted by professionally
qualified staff. An
appropriate weighting should be determined and used in
conjunction with a range
of other weighted selection tools.
5.4.2. Concurrent Validity
In concurrent validity, both criterion and predictive data are
collected at the same
time regarding current employees and hence referred to as
concurrent validity.
Where job analysis is used to identify critical knowledge, skills,
attributes (KSAs)
for a job, tests can be identified that measure what is required
to be successful (pre-
dictive) in these job tasks.
At the same time, criterion data is gathered, such as output,
quality, timeliness,

performance management feedback or other criteria related to
the job (criteria). The
tests are considered to be valid predictors of performance if
statistically significant
relationships with criteria exist.
5.4.3. Predictive Validity
Instead of collecting predictive and criteria data together,
predictive validity
involves the collection of data over a period of time (Gatewood
& Feild, 2001,
p. 168). Once a high correlation is determined regarding the
relationship between
predictive and criterion validity data, the tests can be given to
applicants and not
current employees.
The predictive validity of the tests has been verified via
concurrent means and
can be used with a degree of confidence in predicting the
performance of applicants
in the job. Concurrent validity processes confirm the validity of
tests given to exist-
ing staff so they can be given to applicants.
5.4.4. Other Forms of Validity
Face validity refers to the perception of the applicants
undertaking such tests. When
applying for vacant positions and being required to undertake
tests, applicants
expect the test to be relevant to the job explained to them. If
there is a clear link
between the job and the test then applicants will be much more
amenable to under-

taking the test.
However, where the link is tenuous then applicants may be more
cautious about
completing the result and a potential source of errors may arise
unnecessarily. In
order to reduce applicant’s stress and to increase the levels of
reliability and validity,
it is wise to explain the role that the test will play in the
selection process. Giving
applicants an overview of the weighting of all aspects of the
selection process,
including tests, and answering any questions they may have will
lead to a much
smoother process.
It is usual for interviewers to give an overview of the selection
processes and
weightings to the applicants during the initial interview.
Effective communication is
essential so that applicants understand the processes involved
and there are no sur-
prises. The interviewers need to be able to answer applicants’
questions and show
that they have a clear understanding of the processes themselves
and support the
use of tests and other assessment tools. This is especially the
case where interviewers
do not administer the test themselves.
Content validity refers to the capacity of a test to cover a
representative sample of
the criterion being tested. The test must cover all essential
aspects of the criterion in
order to assess applicants’ knowledge. The content covered by
the test should assess

the knowledge and behaviour of a person who would typically
be familiar with such
a role.
A person applying for the position of a commercial aeroplane
pilot would clearly
need to demonstrate a knowledge of avionics and how to
respond when warning
lights come on. The applicant may be required to demonstrate
skills in a simulator
to show he or she can captain the plane.
However, a commercial pilot also needs to know about the use
of radar, weather
patterns and their impact, communications, how to access
airspace over different
countries on international routes and emergency procedures. An
applicant may also
need to demonstrate his or her navigation skills, knowledge of
de-icing practices,
security requirements, processes at airports and how to avoid
restricted airspace.
In this case the employer may use several different tests to
assess the applicant’s
competence or use one of more integrated tests that assess
applicant’s competence

across the range of knowledge, competence and experience. It
would be expected
that a typical commercial pilot would have a thorough
knowledge of all these
aspects of the role while training could be used to reinforce any
areas lacking
experience.
The role of a commercial pilot is substantial and carries a great
deal of responsi-
bility for passengers, crew and the aircraft. Thus content
validity would be achieved
if a representative sample of the role or part of it were fully
assessed. A test of avio-
nics would allow applicants to demonstrate competence in this
area but if other
important areas were not assessed then the test would have low
content validity.
The employer could not be confident that the applicant had a
sound knowledge of
the necessities of being a commercial pilot.
Construct Validity is a term that refers to the psychological
characteristics
deemed necessary to successfully and effectively perform a task
or job. Every appli-
cant brings with them a myriad of constructs or psychological
characteristics such
as intelligence, communication ability, motivation, ability to
work in a team or
work independently and leadership.
As applicants leave one employment system to join another,
they bring with
them an accumulation of experience, knowledge, values and
belief systems. It is

these characteristics that make them attractive to potential new
employers, who
determine if this accumulation adds value to their talent bank.
Not all employers
will seek the same constructs in new employees but will seek
those they believe are
most valuable to their system of employment and in enhancing
strategic talent.
However, as people have a number of different intangible but
observable con-
structs, organisations strive to identify which constructs make
their staff successful.
This can mean deconstructing the psychological characteristics
of individuals and
attempting to measure the constructs deemed value adding.
Tests can be used to
measure the constructs provided the correct constructs have
been identified.
According to Gatewood and Feild (2001, p. 184), ‘Construct
validity is a research
process involving the collection of evidence used to test
hypotheses about relation-
ships between measures and their constructs’.
Once a desired construct is identified, different tests and tools
can be used
to determine if the tests (indicants) actually measure what they
are supposed to

measure. As more evidence is gathered to support the precept
that the tests are accu-
rately measuring the constructs they are supposed to measure,
the level of construct
validity increases.
If a test is not reliable, it is not valid. If a test is valid, it must
first be reliable, but
every test that is reliable need not be valid. Those engaged in
strategic recruitment
and selection need not be psychologists but they do need to
understand the termi-
nology and how/why these are applied.
5.5. Situational Testing
5.5.1. Assessment Centres
An assessment centre is an artificial environment created to
allow applicants to
undertake a range of activities designed to demonstrate their
cognitive abilities and
traits to observers. The assessment centre allows observers,
organisational staff
and/or consultant psychologists to see how applicants deal with
different scenarios
in a practical setting.
Over a period of hours or days applicants focus on the tasks
they are involved in
and it becomes more difficult for them to maintain a facade for
the observers.
Eventually, core traits will become evident and give the

observers a fairer indication
of applicants. Applicants are informed early in the selection
process that they may
be required to attend an assessment centre and told the role and
purpose of this
form of assessment with respect to other selection tools to be
used.
While the use of assessment centres is generally used to assess
and employ gradu-
ates, it is not restricted just to graduate recruitment.
Participants in assessment cen-
tres are given a range of activities to undertake and complete,
and each task is
designed to test their constructs in a practical way. The fit
between individual parti-
cipants and the organisation is assessed through various
activities. The participants
are observed and therefore assessment centres are subject to the
rigours of reliability
and validity.
While the duration of the assessment centre varies, most have a
similar structure.
Job analysis is undertaken and the core criteria are identified
and form the basis for
the assessment centre activities. Thus the constructs being
assessed are all job
related. Sources of errors from participants, e.g. nervousness,
are assessed through
observation and considered. However, non-job related
constructs such as a partici-
pant’s personality may be observed and trained assessors help
guide selectors to the
core constructs such as interpersonal and communication skills.

The activities undertaken can vary depending on the constructs
necessary to suc-
cessfully meet the job criteria being assessed. Garavan (2007,
pp. 155�156) outlines
these and include the following:
In-basket exercises — In one in-basket exercise, participants
were placed in the role
of a regional bank manager and given two hours to reply to 30
customer
complaints regarding poor customer service, low performance
and HR issues.
Graduates had to prioritise the severity of the complaints and
complete a typed
report regarding the issues that had to be emailed to the chief
assessor.
Similar scenarios can be developed that assess participants’
communication compe-
tence as well as their capacity to analyse core issues, make
decisions, adhere to
time constraints as well as plan and organise their activities.
These individual
constructs may infer a level of participant’s intelligence,
however they relate to
specific aspects of the job to be filled.

Leaderless group activities — In this activity, randomly
selected groups of four or
five graduates were brought together and given a structured
problem and they
were allowed 15 minutes to read a two-page overview of the
problem. They then
had to identify ways to resolve the problems and any other
issues that needed
addressing. They then came together for 40 minutes to discuss
the problems as a
group and told that at the end of this time they would need to
give a 10-minute
presentation outlining their analysis and recommendations.
In this case it is important to note that no leader of the group
was appointed by the
assessors.
Instead the participants had to decide how best to resolve the
problem, address
issues that were identified, work together and produce an
acceptable presenta-
tion. This exercise was used to identify participants’ problem
solving skills, analy-
tical competence, their ability to influence and work with
others, their delegation,
goal orientation, presentation and communication abilities.
These constructs may be generic characteristics desired in all
graduates but they are
important for those destined to fill senior management roles
within organisations.
Graduates are targeted as they have demonstrated their learning
capacity by
gaining a qualification and have ‘learnt how to learn’ and can
enhance an organi-

sation’s talent bank and bring in new ideas.
Case scenarios — Case scenarios are used in assessment centres
to assess applicants’
characteristics and to confirm those already identified by other
tests. The case
scenarios reported by Garavan (2007) involved management
issues in actual
organisations. The graduates were given 65 minutes to read the
case and prepare
a typed report analysing the issues raised and appropriate
recommendations. The
reports were then emailed to the chief assessor. In all instances
where material
had to be emailed to the chief assessor that person then
distributed the material
to the other assessors for comment and discussion.
As all material had to be typed and emailed to the chief
assessor, the computer lit-
eracy of participants was also being assessed as well as the
content matter. The
case scenarios required analysis, prioritisation, problem
solving, timeliness and
appropriate recommendation that were well argued and targeted.
While some
constructs were being reassessed, new or different constructs
were also being
identified and compared to the actual job criteria.
Interview simulations — Interview simulations require each
graduate to have a
one-on-one interview with a trained interviewer lasting 30 to 40
minutes. Each
interview was observed by two assessors while the interviewer
used a series of

structured probing and behavioural questions related to the job
criteria pre-
viously identified as core to the job.
The interview allowed the assessors to view applicants’
performance without other
graduates being present. While the focus was on job criteria, the
interview
allowed assessors the opportunity to determine how graduates
perform in groups
and by themselves and how closely they meet the job criteria.
Oral presentations — Oral presentations are also used to assess
the participant’s
abilities. The graduates had 20 minutes to choose a topic
amongst several topics
available to them and they had 10 minutes to make their
presentation which was
observed by two assessors. The assessors were looking at how
organised, struc-
tured and logical the presentation was as well as how the
presenter generated
interest and enthusiasm and how convincing and informative
their arguments
were (Garavan, 2007, p. 155).
Garavan (2007) found that assessment centres did have a role to
play in predict-

ing person-organisation fit. Graduate performance at assessment
centres could be
used to determine job appropriateness and the use of high
socialisation practices,
and effective training and development tended to enhance
graduate fit and
performance.
The interaction between the trained assessors and the
organisation is important
in order to ensure the constructs being assessed are the correct
constructs for a spe-
cific job. Once there is a thorough and agreed understanding of
what the assessment
can achieve and how, then both parties can focus on how best to
assess participants.
Participants need to be given feedback at the conclusion of the
assessment centre
and this needs to be done in a positive and constructive manner.
A variation of assessment centres is the developmental
assessment centre (DAC).
The focus of the DAC is on developing existing staff in an
organisation. There is a
clear benefit when the staff within an organisation are given the
opportunity to par-
ticipate in a DAC which in itself may be motivational. This
opportunity may signal
to those staff that they are valued and appreciated and that the
organisation is will-
ing to invest in their futures.
Another benefit following the DAC is that unambiguous
feedback can be given to
participants and opportunities given to them to put into practice
what they learnt at

the DAC. This process can certainly engage staff and can
effectively enhance the cur-
rent talent bank of the organisation through developing existing
staff. Organisations
that embrace the People-Performance-Profit/Other outcomes
approach will see
the strategic benefits of this, while cost-conscious organisations
may find it an expen-
sive exercise (Applebaum, Hartel, & Shapiro, 1998).
5.5.2. Game Theory, Simulations and Innovative Selection
Tools
The use of game theory has become common in many
contemporary situations. In
defining game theory, Dixit and Skeath (1999, p. 3) state that:
When you think carefully before you act—when you are aware
of
your objectives or preferences and of any limitations or
constraints on
your actions, and choose your actions in a calculated way to do
the
best according to your own criteria—you are said to be acting
ration-
ally. Game theory adds another dimension to rational behaviour,
namely interaction with other equally rational decision makers.

In
other words, game theory is the science of rational behaviour in
inter-
active situations.
Game theory involves decision making and an awareness of the
impact of that
decision on others and the outcome of the game. In an education
and assessment
situation, the term ‘game’ does not include games of chance but
instead refers to
games where players compete with each other and differ only in
their decision mak-
ing, interpretation of any rules and strategic intent.
The inclusion of game theory in the recruitment and selection
processes may
allow assessors to observe, via games, an applicant’s
competitiveness, logic, strategic
thinking and goal orientation.
Computer simulations have been used in higher education and
management edu-
cation programs as learning and assessment tools. The ‘Muck
Game’ is used to aid
in the transfer of knowledge to engineering students. In the
game, students must
construct a 30-metre high dam of rock and clay.
Students must consider variables such as weather, resources,
supervisors and
labour budgets, timelines, and health and safety. The students
must create a plan
and work to that plan. Where educators see major deviations to
the student plan,
they intervene to get the student to stick to the plan or to

reassess resource needs or
the plan itself. The game forms part of student assessment
together with traditional
approaches such as coursework and exams (Long, Mawdesley,
& Scott, 2009).
The innovation game is used in higher education to teach
students the interaction
of strategic and operational decision making and their impact on
new products.
Again, this game is used as a teaching methodology to aid
students’ understanding
of real-life situations and make them more job ready. They learn
how resources need
to match desired outcomes and how investment can be used
wisely to reposition pro-
ducts and organisations in specific industries (Yalabik, Howard,
& Roden, 2012).
Games and computer simulations are harder to fake and the
outcome provides
selection assessors an ‘honest signal’. Bangerter, Roulin, and
Konig (2012, p. 719)
define signalling theory as follows:
Signalling theory therefore addresses the conditions under
which
exchange of accurate information is possible among rational
indivi-
duals with partly divergent interests.
While organisations send positive signals to applicants via
competitive salaries
and benefits, excellent promotion possibilities and social
reputation within the com-
munity, they seek positive signals from applicants. From a

systems perspective,
organisations with an excellent track record in social, ethical
and environmental
responsibility are signalling to applicants that they are positive
in employment and
the broader community. The signal infers that such
organisations are aware of com-
munity expectations and positively respond accordingly.
The use of computer simulations and games also signals to
applicants that they
are technologically competent and innovative in their thinking.
Graduates, man-
agers and those who are technology literate can engage in
assessment tasks using a
medium with which they are familiar and would be used by
some smaller organisa-
tions and most medium to large organisations.
However, despite the best intentions of proactive and innovative
organisations,
some selection methods may disadvantage minority groups as
previously mentioned.
Applicants may have impairments that are not initially
observable, such as
Dyslexia, Asperger’s syndrome or one of the other Autism
Spectrum Disorders.

An understanding of these conditions may allow disadvantaged
or disabled appli-
cants to successfully join the workforce of an organisation. This
might require an
organisation to educate other staff on likely situations such as
poor social skills and
interaction, provide additional time to complete allocated tasks
or assign a mentor
to help the person initially. A person with Obsessive
Compulsive Disorder may be
an excellent employee in situations where attention to detail is
critical. In any event,
any form of discrimination is not only illegal but sends a very
strong negative signal
to the community (Goldman & Lewis, 2011).
5.6. Social Networking
Social media has become a means by which people share
information, ideas, views
and comments with specific individuals such as friends and
colleagues in protected
areas. Alternatively, people can share their views and ideas in
the public domain
where anybody searching social media can access this
information.
In 2011, a survey of 800 human resource practitioners and
consultants in the
United States showed that 89% were either currently using
social networking or
planned to use it as a recruitment and selection tool.
Sophisticated software pro-
grams used by online search agencies can advertise job
vacancies via client staff who
use social networking. The people who receive the vacancy

information can pass it
on to colleagues using their own social network sites and they,
in turn, pass it on to
those who may be interested in the position (Adams, 2011).
This approach builds upon staff referrals but achieves an
outcome because staff
have social network sites where they can share information
privately or publicly.
Once the information is received, the recipients pass it on to
their contacts who, in
turn, pass it on to their contacts. However, recipients would
refer it to their contacts
who would be interested in the job.
Thus each social network contact filters the information and
refers it to suitably
qualified friends, relations and colleagues. They would not refer
a position for an
accountant to an engineer but they would send it to contacts
who were accountants
or knew accountants.
The information sharing aspect of social networking can be used
by consultants
and organisations to create a cascade of information to users.
This approach cir-
cumvents the need to post job vacancies on noticeboards and
intranets but is still
extremely effective in identifying suitable candidates.

The same research showed that 70% of those seeking to appoint
new staff also
examine the candidates’ social media profiles. This is done to
gain a better insight
into the people they are considering hiring. Social networking
websites such as
MySpace, Facebook, LinkedIn and Twitter reflect the likes and
dislikes of the
people who use them and organisations can learn a lot about
candidates simply by
visiting their social networking websites.
While social networking can be a positive recruitment and
selection tool, it can
also be the reason why people are not employed, or, in some
cases why staff are
fired. Davison, Maraist, and Bing (2011) cite two scenarios
where social networking
has had negative consequences.
The first concerns a young lady who has applied for a position
as a camp coun-
sellor over summer. Despite a very successful interview and
providing excellent
references, she is not offered the position as employers checked
her MySpace web-
site showing pictures of her binge drinking.
The second example concerns a man who has been required to
work late on a
project that he believes is not worth spending time on.
Frustrated he sends a ‘tweet’
saying he hates his job and will leave the organisation as soon

as he can. The tweet
is read by managers of the organisation who then fire him the
next day.
These scenarios illustrate the benefits and pitfalls of social
network use to both
employers and candidates. They demonstrate how these
networks can be used in
recruitment and selection as the sites contain personal
information about people
that may help an organisation decide to employ or not employ a
person.
These sites are not totally private and people uploading
information to them may
be unaware that potential employers are using them as a means
of determining if
they are suitable for employment or not. Certainly the more
strategic organisations
troll social networking and other sites looking for talent but do
not give added
weight to such sites.
Organisations can deal directly with individuals rather than go
through consul-
tants or other agencies or advertise in other forms of media.
This creates a very fast
and economical means of identifying and employing suitably
qualified staff (Aarts,
2011).
5.7. Referrals from Crowdsourcing and Innovation Management
Crowdsourcing is becoming a management tool as crowds are
used in mainstream
areas of organisations. Crowds can be connected to

organisations via technology
which allows organisations to access and coordinate crowds and
use these in a vari-
ety of ways not previously considered.
Boudreau and Lakhani (2013) identify four ways of using
crowdsourcing to
address corporate challenges. One of these is the use of
crowdsourcing to meet
labour and talent needs. In this way organisations can create a
platform where
desired talent can be accessed on a needs basis and at a highly
competitive cost.
Third-party organisations such as oDesk, CloudCrowd,
Freelancer and others
match the need of organisations with the desired talent base.
This may be considered a means of outsourcing as a match
between specific com-
petence and talent needs occurs on an individual basis but using
non-standard
employment. Crowdsourcing can be a source of full-time staff,
or suitably qualified
candidates may be referred to the organisation by members of
the crowd.
Another excellent source of standard employment candidates

may be those iden-
tified by the third-party organisations as meeting the short-,
medium- and long-term
needs of the organisations relying on them. In any event this
relationship opens up
strategic opportunities for both non-standard and standard forms
of employment as
required.
5.8. Offers
When an offer of employment is made it forms a contract
between the organisation
and the successful applicant. The contract may be subject to
local, state or national
laws and may require specific inclusions such as flexibility.
In Australia, the Fair Work Act (2009) requires each new
employee to receive a
Fair Work Statement from their new employer upon
commencement of employment
or shortly thereafter. The statement contains 10 National
Employment Standards
which act as a safety net of minimum terms and conditions of
employment.
These include:
1. A maximum standard working week of 38 hours for full-time
employees, plus
‘reasonable’ additional hours
2. A right to request flexible working arrangements to care for a
child under
school age, or a child (under 18) with a disability

3. Parental and adoption leave of 12 months (unpaid), with a
right to request an
additional 12 months
4. Four weeks paid annual leave each year (pro rata)
5. Ten days paid personal/carer’s leave each year (pro rata), two
days paid com-
passionate leave for each permissible occasion, and two days
unpaid carer’s
leave for each permissible occasion
6. Community service leave for jury service or activities dealing
with certain emer-
gencies or natural disasters. This leave is unpaid except for jury
service
7. Long service leave
8. Public holidays and the entitlement to be paid for ordinary
hours on those days
9. Notice of termination and redundancy pay
10. The right for new employees to receive the Fair Work
Information Statement
The Fair Work Ombudsman can investigate claims of non-
compliance, educate
employers and employees as well as commence proceedings
those who breach work-
place laws (Fair Work Ombudsman, 2010).

Each country will have its own standards, work-based
legislation and enforce-
ment agency dealing with such issues. Multinational
organisations need to consider
the requirements of each nation where they operate.
Those organisations employing a resource maximisation
strategy tend to
exceed national standards in each country as they set their own
benchmark higher
to protect the rights of their staff. This signals to staff they are
valued and
appreciated.
Letters of offer and contracts of employment will also include
other information
including the following:
• Commencement time and date
• Induction program
• Hours of work
• Wage or salary including information about bonus or other
incentives where they
apply
• Specific requirements such as overtime, travel
• Reporting relationship
• Place(s) of work
• Levels of responsibility and authority
• Benefits including financial and non-financial
• Uniforms
• Performance reviews
• Training and education

• Personal and professional development
Each letter is generally crafted to the individual and only
contains those elements
that will apply to that person. It summarises the agreed salary
and conditions dis-
cussed at the conclusion of the appointment process.
Prior to appointment, many of the details listed previously need
to be considered
and agreed upon so that all parties within the organisation know
the parameters
between which discretion is allowed or not. Of course, if an
organisation finds an
outstanding applicant these parameters may need to be
reviewed.
It is not uncommon for organisation advertising for a graduate
in a given area to
advertise that applicants must have/ideally have at least two
years’ experience.
However, if an exceptional applicant who has just graduated
applies, then organisa-
tions may see strategic advantages in employing the recent
graduate.
The letter of offer confirms information discussed privately or
at the conclusion
of the appointment process. The contract of employment sets
out the agreed terms
and conditions of the job so that both parties enter into the
contract fully under-
standing what has been agreed to. The contract of employment
must be clear, easy
to understand and the language used must not be confusing or
ambiguous. This is a

legal contract.
While wages, salaries and benefits are discussed and agreed
upon, they still form
part of the letter of offer and contract of employment. However,
wages and salaries
do more than compensate employees for the contribution to an
organisation.
The quantum of wages or salary paid to employees reflect to the
community how
much staff are valued by their employer. Those more highly
valued will be paid
more and have a greater amount of disposable income. This will
allow them to buy
goods and services that others on a lower salary cannot afford.
They may live in more affluent suburbs, travel overseas for
holidays more fre-
quently or purchase more expensive cars. The wage or salary
paid to staff reflects
how valued they are by an organisation and can determine their
social status in the
community.
This, in turn, impacts upon their self-esteem as they try to
determine their
worth to an organisation compared to colleagues. This complex

relationship
between worth and social status/self-esteem further impact upon
the organisation/
community system and the roles staff play in each. It is
worthwhile considering the
components of offers and contracts of employment from the
applicant’s perspective.
5.9. Psychological Contracts
However, there is another contract that has been referred to
earlier. This is the psy-
chological contract. The psychological contract is defined as:
An individual’s belief regarding the terms and conditions of a
recipro-
cal exchange agreement between that focal person and another
party … a belief that some form of a promise has been made and
that
the terms and conditions of the contract have been accepted by
both
parties.
So, in terms of careers, the psychological contract represents
informal,
unwritten understandings between employer and employee(s).
From
the employees’ point of view, the psychological contract is the
agree-
ment that they think they have with their employer about what
they
will contribute to the employer via their work, and what they
can
expect in return. (Arnold et al., 2005, p. 532)
The psychological contract involves the interpretation of

discussion and corre-
spondence between employer and employee and their respective
perceptions of what
both will contribute and gain. Because this involves a subjective
process, the two
parties may not share the same perception. Thus it is wise to
clarify this unwritten
contract to ensure both parties have the same understanding.
In the recruitment and selection of new staff, the interviewers
are the people appli-
cants deal with the most. This can lead applicants to construct
perceptions about the
organisations and expectations based on their interaction with
interviewers.
Once the interviewers withdraw after an applicant is appointed,
the new
employee may feel somewhat vulnerable; hence, it is important
that the interviewers
be involved in the induction program and engage in less formal
but frequent interac-
tion with new staff.
This will reinforce the view that new staff are not alone once
they commence and
gives them the opportunity to discuss any unforeseen issues that
may have arisen.

This approach keeps recruiters involved with new staff, and
feedback can be used as
part of their organisational diagnostics to remedy any negative
issues before further
staff are appointed.
The psychological contract may be positively or negatively
reflected in comments
by new staff on their social media websites, depending upon
their experiences. In the
public domain areas of social networking such comments can be
read by employers,
fellow staff and others thinking of seeking work with the same
employer.
In the private domain of social network sites, new staff can
confide in their
friends and family their real experiences and feelings. If they
know of people consid-
ering employment with their employer then they are more likely
to forward their
comments to such people either to encourage or discourage
them.
In any event the psychological contract is a powerful influence
on new staff
and how they portray their job and employer to others in the
community. These
individual experiences inform the decisions of other job seekers
in the organisation/
community system. Psychological contracts may differ between
age groups and
culture. Research by Zhao and Chen (2008) found that younger
Chinese workers
are more individualistic in nature and form transactional
psychological contracts

with their employer.
However, staff with an internal locus of control tend to form
relational psycholo-
gical contracts with their employers. Interestingly, this finding
only applied to
Chinese workers, which indicated that a number of different
aspects impact upon
the formation of a psychological contract, including cultural
factors. The research
also indicated that personality plays a part in forming the
contract and helps explain
why different people employed in the same role form different
types of contracts.
A perceived breach of a psychological contract by an employee
can heavily
impact upon the employee’s commitment, motivation and level
of job satisfaction.
In extreme cases this leads to the employee leaving the
organisation and potential
unrest with other employees if they agree that a breach of the
psychological contract
did occur (Gerber, Grote, Geiser, & Raeder, 2012).
Saunders and Thornhill (2006) also found in their research that
permanent
employees with a relational psychological contract reacted
differently when forced
into temporary employment.
Some could not accept the transition and saw it as a breach of
the psychological
contract while the organisation tended to treat this situation in a
very transactional
manner. More staff-oriented organisations created a gradual

transition to allow
staff to slowly accept the new relationship and how the
organisation viewed their
employment. This was necessary for staff moving from a
relational contract to a
transactional psychological contract.
5.9.1. Listing Expectations
Graduates and those entering the workforce for the first time
may have little experi-
ence in how to effectively prepare for interviews and résumés.
For such people the
experience will be new and they will tend to infer cues from the
processes and their
interaction with selection staff. If the recruitment and selection
processes are
deemed appropriate, engaging and inclusive, then the
applicant’s experience will be
positive. Where applicants view recruitment and selection as a
positive experience,
this may result in a more productive psychological contract
being established
between the applicant and the organisation. Thus the processes
themselves are
assessed by applicants and can influence their decision to join
an organisation as

well as create their job/organisation expectations for the future.
Variations between the new holder’s expectations of the job and
job realities can
lead to ‘feelings of disillusionment, frustration, and turnover…’
(Scholarios,
Lockyer, & Johnson, 2003, p. 183). The better the experience,
the better the transi-
tion to stable employment — the reverse is also true.
In 2001, Curtis and Wright (2001, p. 59) stated that replacing
key staff can exceed
150% of the person’s annual gross salary. The costs included:
• Separation costs
• Temporary replacement costs
• Recruitment and selection costs
• Induction and training costs
However, when a new recruit leaves an organisation, typically
in the first 12
month of employment, the person takes with him or her the
knowledge, experience,
creativity and the investment the organisation has put into the
person. The invest-
ment can be through training and education, experiential
learning, developmental
opportunities, career maps, succession planning and inclusion in
the talent bank.
These activities are designed to enhance the new staff’s learning
curve or experi-
ence. When young or inexperienced staff join an organisation it
takes time for them
to learn the job to the point where they can undertake it with
minimum assistance.

Enhancing the learning curve means to become more competent
faster. With staff
turnover the talent bank diminishes.
The link between unrealistic job expectations and staff
dissatisfaction and turn-
over has been well documented as noted above. The reason for a
variance in real
and pre-employment expectations can vary. A person engaged in
high-level sociali-
sation pre-employment may assume that this is the norm but
find that this is not the
case with his or her supervisor or colleagues.
Reducing anxiety but ensuring the person knows what to expect
when he or she
joins the organisation is important. This may mean that all staff
coming into con-
tact with new employees may need to display similar behaviour
and be consistent
and supportive, which signals to the employees that they are
valued and have made
the right choice by joining the organisation.
It may be appropriate in the pre-employment stage to ask the
successful appli-
cants what their expectations are. Such a discussion may
involve elements identified
in earlier chapters such as control over their job, employment
stability and security,
promotability, adequate remuneration and the like.
However, expectations of applicants also include relational
areas with staff. In
many instances socialisation with staff the person will work
with may assist in

identifying unrealistic expectations. Where organisations use
self-directed teams, it
is common for all members of the team, as well as other staff
the person will come
in contact with, to be involved at different stages of the
appointment processes.
Wickramasinghe and Wickramanayake (2013) recommend that
applicants do as
much research on the job and the organisation as possible. Post-
employment, new
staff will want to have their actual and potential expertise
recognised and respected
and will want to identify with the organisation.
Inclusivity and openness will be appreciated by new staff
especially when
selection staff ensure that the person does not have any
unrealistic expectations
about the job, the organisation or relational matters. These can
be monitored
during induction and orientation and on an ongoing basis
especially during the first
12 months when new staff tend to leave organisations.
5.10. Direct and Indirect Discrimination and Their Impact

As mentioned in earlier chapters, any form of discrimination is
illegal and sends
negative signals to the broader community. There are of course
exceptions such as
in the Arts where a male dancer or an actor plays a male role or
for health and
safety reasons persons of a certain height need to be employed
to operate dangerous
equipment.
However, while every effort can be made via effective strategic
recruitment and
selection, other staff in the organisation need to be made aware
of the types of dis-
crimination, their impact on all staff, but especially new staff,
and the legal conse-
quences of engaging in discrimination.
Prior to recruitment and selection, it is recommended to engage
in organisational
diagnostics to identify any issues that need to be resolved
before a new staff member
is engaged. Issues may include poor communication, personality
clashes, role ambi-
guity, disruptive team or group dynamics, inappropriate
organisational structure,
unequal distribution of tasks or responsibilities and
counterproductive cultures or
subcultures — and discrimination.
A review of requested transfers from teams, sections,
departments and the organi-
sation as a whole can indicate problem areas. A similar review
of all voluntary and
involuntary termination of staff can also yield a wealth of
information. Where exces-

sive transfers or terminations occur, the root cause needs to be
determined and,
where possible, permanently resolved. If these issues are not
resolved, then exposing
new staff to them increases the probability that these staff will
leave as well.
While gathering data for job analysis and job enlargement or
job enrichment, it
becomes necessary to discuss these with staff who work in the
same area. A 360°
review of the job and its environment will include discussions
with supervisors and
managers, colleagues and those who report to the position where
this occurs. Where
the position is part of a team then each team member will need
to be involved.
Where an internal supplier-customer working relationship is
employed, all within
this chain will need to be involved in discussions.
These discussions need not be too long or overly time
consuming. Whilst gather-
ing information about a job, strategic selectors analyse and
evaluate the interactions
and impacts on the new employee. This includes determining
why the job is vacant,
why staff have been transferred from the area and why staff

have left the organisa-
tion. Included in this is a review of any possible types of direct
or indirect
discrimination.
At times staff have beliefs which can influence their thinking,
such as ‘A woman
could not do that job’ or ‘he should be able to lift that package
without help’. These
forms of discrimination may not be evident or they may be very
subtle in nature but
those to whom they are directed will detect them and act
accordingly. Differences in
personality and temperament are often overlooked and selectors
need to be discern-
ing (Connor, 2009).
5.10.1. Fairness and Equity
All staff expect to be treated fairly and equitably. Fairness,
equity and comparative
justice are interlinked to the point where it is common for them
to be interchange-
able. Within this mix is social justice. Alm (2010, p. 309) notes
this is in respect to
egalitarianism ‘…how much a person of a certain centrally
important good should
have or get depends on how much of a good others persons have
or get…all persons
have a claim to be equal with others…’.
The concepts of equity and fairness involve comparisons which
people make with
others in similar positions. It suggests that all things being
equal every person
should be treated the same and share in any benefits. The

concepts may be inter-
preted differently by different persons and the distinction may
be due to perceptual
differences. One person compares what he or she gets with what
others get.
Context is also important to fairness and equity. A person in an
organisation
may have a creative idea and pass this on to management. Other
staff may then be
involved in turning the idea into reality. If the idea saved the
organisation money
and sought to share the benefits with those involved, the
question becomes who gets
what benefit or reward?
In the case of the person who thought up the idea he or she may
argue that the
organisation benefitted due to his or her idea and without that
idea no benefit could
be gained. The other staff who turned the idea into reality
would argue that without
their input the idea would remain just that — an idea.
Similar issues of context and relativity arise with salary and
benefits, promotions,
bonuses, redesigning jobs and their environment, redistribution
of workload and
levels of authority and responsibilities. Any perceived
difference in relativity or con-
text can lead to staff making assumptions and feeling
undervalued. As a conse-
quence this may impact upon morale, motivation and
productivity.
Issues of fairness and equity need to be resolved by

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