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Selection for Fit, Recruitment and selection, HRM


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Covering the Selection for Fit (very important topic) in HRM subject Recruitment & Selection

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Selection for Fit, Recruitment and selection, HRM

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  4. 4. 4 “What is the biggest cost for a company?” Answer was “WRONG PEOPLE” Statistics - 2012 poll conducted by CareerBuilder.  41% companies experienced $25,000 per single bad hire.  24% incurred $50,000 for a single bad hire.  The cost includes. • loss of productivity and time. • cost to recruit. • train new employee. • employee morale being affected.  Another interesting statistic . • 67% of employees were considered bad hires due to their ability to produce proper quality work (lack of competency and job fit). • 60% did not work well with other employees (lack cultural fit).
  5. 5. To acquaint you with the Selecting for fit (Individuals Fit with Jobs, Organizations, Cultures) and Employment Laws (Legal/ Social context for Recruitment & Selection). 5
  6. 6. PART 1 - Raja Manzar  Employee selection.  Aligning Talent & HR Strategy.  HR Strategies (Recap).  Strategic Framework for Employee Selection.  Making Strategic Selection Decision. PART 2 - Sajid Zafar  Making Selection Method Good.  Commonly Used Selection Methods.  Types of Interviews. 6
  7. 7.  Selection Decisions. PART 3 – Muhammad Farooq Munir  Employment Laws. PART 4 - Panel  Article Abstract - The Value of Person Organization Fit by Dr. Charles Handler.  Question Answer session.  Conclusion. 7
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  9. 9. Employee selection  The process of choosing people to bring into an organization.  Effective selection provides benefits to an organization It can improve the effectiveness of other human resource practices and prevent numerous problems. For example; motivated employees who fit with the organizational culture can reduce disciplinary problems and diminish costs associated with replacing employees who quit. 9
  10. 10. HOW IS EMPLOYEE SELECTION STRATEGIC?  Good selection practices must fit with an organization’s overall HR strategy.  As we have already studied that HR strategies vary on two dimensions:  whether they have an internal or an external labor orientation and  whether they compete through cost or differentiation.  These provide guidance about the type of employee selection practices that will be most effective for a particular organization. 10
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  12. 12. HR Strategies (Recap) There are 2 strategies pursued at business level.  Cost leadership strategy. Organizations seek to become low-cost producers of goods and services. Their goal is to develop efficient production methods that enable them to sell at a lower price than competitors.  Differentiation strategy. Organizations using this strategy seek to produce goods and services that are somehow superior to the goods and services provided by competitors. Their goal is to create unique value for which customers are willing to pay a higher price. 12
  13. 13. HR Strategies (Recap) There are four human resource strategies commonly used by organizations. 1. Loyal Soldier. 2. Bargain Laborer. 3. Committed Expert. 4. Free Agent. 13
  14. 14. 14  Hiring & retaining loyal employees who do whatever the company asks of them.  Employees have broad roles and perform a variety of different tasks.  Recruitment/hiring because they fit organization culture & their potential to become loyal employees.  Efforts are made to satisfy the needs of employees to build a strong bond which reduces the employee turnover.  Hiring & provide extensive training to employees.  Performance appraisals are designed to facilitate cooperation rather than competition.  Compensation includes long-term incentives and benefits linked to the overall performance of the organization. The Loyal Soldier Strategy
  15. 15. 15  Obtaining employees not demanding high wages & design work to have tight control on employee efforts.  Employees are given clearly defined tasks that can be learned easily. People are recruited and hired to perform simple tasks that do not require clearly developed skills.  Little attention is paid to meeting the long-term needs of employees. Organizations don’t provide careers with clear paths for promotion and advancement.  Performance appraisal focuses on day-to-day feedback and rarely incorporates formal measures.  Training is limited to on-the-job techniques that teach specific methods for completing particular tasks.  Compensation is frequently based on hours worked, and benefits and long-term incentives are minimal. Bargain Laborer HR Strategy
  16. 16. 16  Hire & retain who specialize in performing certain tasks.  Employees have a great deal of freedom to innovate and to improve methods of completing tasks.  Recruitment/hiring due to potential fit with the org culture & their aptitude for becoming experts in particular areas.  People hired in early careers and train them to be experts in specific fields, such as accounting or sales.  Performance appraisals are designed to balance cooperation and competition among employees.  Careers generally include numerous promotions.  Employees receive long-term training that helps them develop strong expertise.  Compensation is relatively high and usually includes a good benefits package that ties employees to the organization. Committed Expert HR strategy
  17. 17. 17  Hiring critical skilled people but not necessarily expected to remain with the organization for a long period of time.  Work is such that employees have extensive responsibility within specific areas & substantial freedom to work.  No efforts are made to encourage strong attachments between employees and the organization.  Recruitment done because they already have the skills and experience that they need to perform specific jobs.  No long-term careers in the organization.  Performance Appraisal focuses on outcomes and results.  No training, Compensation high but Short-term.  Pay is linked to individual performance. Free Agent HR Strategy
  18. 18. 18 Internal Recruitment • Job Posting: The process of announcing job openings to employees.  Job information must be made available to all employees.  Ensure minority workers and disadvantaged individuals are aware of job opportunities.  Employee cynicism occurs when there is not “equal” opportunity for open positions. • Employee Referrals:  Some believe this is the route to the best employees.  Can perpetuate discriminatory hiring practices.
  19. 19. 19 External Recruitment  Employment agencies.  Executive search firms.  In-house recruiters.  Local advertising:  Newspaper.  Multimedia.  Internships.  Job fairs.  College recruiting.  Walk-in candidates.
  20. 20. 20 RelationshipType Talent Type Long Term ShortTerm Generalist Specialist Long Term Generalist • Need for organization fit • Potential & Motivation Loyal Soldier Internal/Cost HR Strategy Short Term Generalist • Little Need for fit • Potential & Dependability Bargain Laborer External/Cost HR Strategy Long Term Specialist • Need for Organization & Job fit • Potential for Specific Expertise Committed Expert Internal/Differentiation HR Strategy Short Term Specialist • Need for Job fit • Achievement Free Agent External/Differentiation HR Strategy Strategic Framework for Employee Selection
  21. 21. 21 RelationshipType Talent Type LongTermShortTerm Generalist Specialist Strategic Framework for Employee Selection The horizontal dimension represents differences in the type of talent sought The vertical dimension represents the type of relationship between the employees and the organization.
  22. 22. 22 RelationshipType LongTermShortTerm Talent Type Generalist Specialist Long Term Generalist • Need for organization fit • Potential & Motivation Loyal Soldier Internal/Cost HR Strategy
  23. 23. Long-term Generalists • Are individuals who have developed skills and knowledge concerning how things are done in a specific organization. • Long-term generalists are beneficial for organizations using the Loyal Soldier HR strategy. • HR strategy is focused on keeping employees once they are hired. 23
  24. 24. Benefits of Long-Term Generalist • Lack of specific expertise allows firms to reduce payroll costs. • Employees have develop skills and abilities that are only valuable to the specific organizations, which reduces the likelihood that they will move to another employer. • Reduction in the recruitment, selection and training expenses. • Because they stay long they tend to develop relationships and form a strong sense of commitment to the organization. 24
  25. 25. 25 RelationshipType Talent Type LongTermShortTerm Generalist Specialist Long Term Generalist • Need for organization fit • Potential & Motivation Loyal Soldier Internal/Cost HR Strategy Short Term Generalist • Little Need for fit • Potential & Dependability Bargain Laborer External/Cost HR Strategy
  26. 26. Short-Term Generalist • Provide a variety of different inputs but do not have areas of special skill or ability. • This is most often associated with the Bargain Laborer HR strategy. • Most positions are filled by hiring people away from other organizations. • The objective is to identify and hire employees to produce low-cost goods and services. • To selection people who can perform simple tasks that require little specialized skill. 26
  27. 27. Benefits of Short-Term Generalist • People without specialized skills do not generally demand high compensation, which keeps payroll costs as low as possible. • Because Short Term Generalist lack specific expertise, they also are usually more willing to work in routine jobs and do whatever they are asked. • The number of employees working for the organization can be flexed up or down as demand for goods and services increases or decreases • Work procedures are simple, and employees who demand higher wages are simply replaced by new workers. 27
  28. 28. 28 RelationshipType Talent Type LongTermShortTerm Generalist Specialist Long Term Generalist • Need for organization fit • Potential & Motivation Loyal Soldier Internal/Cost HR Strategy Short Term Generalist • Little Need for fit • Potential & Dependability Bargain Laborer External/Cost HR Strategy Long Term Specialist • Need for Organization & Job fit • Potential for Specific Expertise Committed Expert Internal/Differentiation HR Strategy
  29. 29. Long-term Specialists • These are people who have an expertise in a particular area. Such as Accounting. • The use of long-term specialists fits the Committed Expert HR strategy. • Selection is to identify people who can assist the company in innovating and produce superior goods and services over time. • People are hired even if they have not yet developed all the skills needed to perform the job, as long as they are committed to advancing within a specific profession. 29
  30. 30. Benefits of Long-Term Specialists • It enables organizations to create and keep a develop talent. • Employees are given the time and assets to develop the skills they need to be the best at what they do and add value back to the organization. 30
  31. 31. 31 RelationshipType Talent Type LongTermShortTerm Generalist Specialist Long Term Generalist • Need for organization fit • Potential & Motivation Loyal Soldier Internal/Cost HR Strategy Short Term Generalist • Little Need for fit • Potential & Dependability Bargain Laborer External/Cost HR Strategy Long Term Specialist • Need for Organization & Job fit • Potential for Specific Expertise Committed Expert Internal/Differentiation HR Strategy Short Term Specialist • Need for Job fit • Achievement Free Agent External/Differentiation HR Strategy
  32. 32. Short-term Specialists • Are employees who provide specific inputs for relatively short periods of time. • Associated with the Free Agent HR strategy. • Staffing is aimed at hiring people who have already developed skills that they can bring to the organization to produce innovative goods and top-quality service. 32
  33. 33. Benefits of Short-Term Specialists • Employees provide services relatively short periods of time. • Allows the organization to quickly acquire needed expertise, without waiting for hires to acquire the skills. • The organization pays premium dollar for this knowledge and skills but makes no long-term commitments and both parties can end the employment relationship at anytime. 33
  34. 34. Making Strategic Selection Decision The focus is on two factors:  Job-based fit  Organization-based fit 34
  35. 35. seeks to match an individual’s abilities and interests with the demands of a specific job.  Person-Job Fit (or P-J Fit). Person-Job Fit involves the measurement of what we often refer to as “hard” information about a candidate’s suitability for the tasks that are required for successful performance of a specific job.  Aspects of P-J Fit include  Specific skills  Levels of knowledge about specific subject matter  Cognitive abilities. 35 Job-based fit
  36. 36. is concerned with how well the individual’s characteristics match the broader culture, values, and norms of the firm.  Person-Organization Fit (or P-O Fit). “I think Sally is a really good fit for our company, Let’s hire her!”?  Major dimensions Jennifer Chatman, identifies the following Organizational Culture Profile (OCP):  Innovation  Stability  Orientation towards people (fair and supportive)  Orientation towards outcomes (results-oriented, achievement-oriented)  Easygoing vs. aggressive  Attention to detail  Team orientation 36 Organization-based fit
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  38. 38. Making Selection Method Good? 38
  39. 39. Selecting the Best Selection Method Questions to ask  How reliable is the process-do you get the same result time and again.  Is it valid-does it relate to the job or performance outcome  Is the method cost effective-utility. 39
  40. 40. Utility 40
  41. 41. Choosing the Best Selection Method Questions to ask  Is the process legal – does not break any laws and fair – treats every application the equally.  Is it acceptable – How does the applicant view the selection process and consequently the organization. 41
  42. 42. COMMONLY USED SELECTION METHODS The three most common methods used are:  Testing  Gathering Information  Interviewing 42
  43. 43. Testing Tests measure knowledge, skill, and ability, as well as other characteristics, such as personality traits. The types are :- 43 Cognitive Ability Testing. To measure learning, understanding, and ability to solve problems. e.g. Intelligence Tests. Personality testing To measure patterns of thought, emotion, and behavior. e.g. Myers Briggs. Physical Ability Testing To assess muscular strength, cardiovascular endurance, and coordination.
  44. 44. Testing (contd….) Integrity Testing Designed to assess the likelihood that applicants will be dishonest or engage in illegal activity. Drug Testing Requires applicants to provide a urine sample that is tested for illegal substances. Work Sample Testing (Assessment Center) -measures performance on some element of the job such as keyboarding. 44
  45. 45. *1 5 never; 2 5 rarely; 3 5 occasionally; 4 5 often; 5 5 almost always Higher scores thus represent more widespread usage. Source: Information from Ann Marie Ryan, Lynn McFarland, Helen Baron, and Ron Page, ‘‘An International Look at Selection Practices: Nation and Culture as Explanations for Variability in Practice,’’ Personnel Psychology 52 (1999): 359–391.
  46. 46. Testing Source: Sample items for Wonderlic Personnel Test-Revised (WPT-R). Reprinted with permission from Wonderlic, Inc.
  47. 47. Sources: Information from Timothy A. Judge, Daniel Heller, and Michael K. Mount, ‘‘Five-Factor Model of Personality and Job Satisfaction: A Meta-Analysis,’’ Journal of Applied Psychology 87 (2002): 530–541; Murray R. Barrrick, Michael K. Mount, and Timothy A. Judge, ‘‘Personality and Performance at the Beginning of the Millennium,’’ International Journal of Selection and Assessment 9 (2001): 9–30.
  48. 48. Information Gathering • Common methods for gathering information include application forms and résumés, biographical data, and reference checking. – Application Forms and Résumés –Generally ask for information such as address and phone number, education, work experience, and special training. – At the professional-level, similar information is generally presented in résumés. • Biographical data - historical events that have shaped a person’s behavior and identity.
  49. 49. Information Gathering – (continued) • Reference Checking - involves contacting an applicant’s previous employers, teachers, or friends to learn more about the applicant Issues with reference checking: – defamation of character, which occurs when something untrue and harmful is said about someone. – negligent hiring, occurs when an organization hires someone who harms another person and the organization could reasonably have determined that the employee was unfit.
  50. 50. Interviewing • The interview is the most frequently used selection method. • Interviewing occurs when applicants respond to questions posed by a manager or some other organizational representative (interviewer). • Typical areas in which questions are posed include education, experience, knowledge of job procedures, mental ability, personality, communication ability, social skills.
  51. 51. Types of Interviews • Structured Interviews - uses a list of predetermined questions. All applicants are asked the same set questions. There are two types of structured interviews. – Situational interview, in which the interviewer asks questions about what the applicant would do in a hypothetical situation – Behavioral interview, in which the questions focus on the applicant’s behavior in past situations.
  52. 52. Creating Structured Interview Q’s
  53. 53. Types of Interviews - continued • Unstructured Interviews-open ended questions are used such as “Tell me about yourself”. • This allows the interviewer to probe and pose different sets of questions to different applicants.
  54. 54. Interviews Types of Employment Interview Q’s
  55. 55. SELECTION DECISIONS • Decision can be made using one of the following methods. – Predictor Weighting - combines a set of selection scores into an overall score in which some measures count more than others. – Minimum Cutoff Approach – The applicant’s strength in one area to compensate for weakness in another area.
  56. 56. Selection Decisions (contd….) – Multiple Hurdle Approach - applicants must meet the minimum requirement of one selection method before they can proceed to the next. – Banding Approach - uses statistical analysis to identify scores that may not be meaningfully different.
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  59. 59. Civil Right Act of 1964 Prohibts employoment descrimination  Hiring  Compensation  Terms conditions or privileges of employment based on: • Race • Religion • Color • Sex • National origin
  60. 60. Executive Orders  eo 11246  Prohibts employoment descrimination • Race, Religion, Color & Sex. • National origin.  eo 11375  Add Sex based descrimination to eo 11246.  eo 11478  Amends part of eo 11246 states practices in federal govt must be based on merit and also prohibts descrimination based on Political affiliation, marital status or physical handicap.
  61. 61. Descrimination in employment act of 1967  Protects employees  40- 65 years of age.  amended to age 70 (1978) .  Later amended (1986( to eliminate the upper age limit altogather.
  62. 62. EEO ACT OF 1972  Granted the enforcement powers for the eeo.
  63. 63. Discrimination in employment act of 1978  Increased mandatory retirement age from 65 to 70 ,. later amended1986 to eliminate upper age limit.
  64. 64. Pregnancy Discrimination act of 1978  Affords EEO protection to pregnant workers and requires pregnancy to be treated like any other disability.
  65. 65. Americans with Disabilities act of 1990  Prohibits discrimination against an essentially qualified individual and requires enterprises to reasonably accommodate individuals.
  66. 66. Civil Rights act of 1991  Nullified selected supreme court decisions, Reinstates burden of proof by employer. Allows for punitive and compensatory damages through jury trials.
  67. 67. Family and medical leave act of 1993  Permits employees in Organizations of 50 or more workers to take up to 12 weeks of unpaid leave for family or medical reasons each Year.
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  69. 69. 69 The Value of Person-Organization Fit by Dr. Charles Handler May 20, 2004 About the author. Dr. Charles Handler is President and founder of Rocket-Hire since 2001. He is a thought leader, analyst, and practitioner in the talent assessment and human capital space. Throughout his career Dr. Handler has specialized in developing effective, legally defensible employee selection systems. Being the president and founder of Rocket Hire, a vendor neutral consultancy dedicated to creating and driving innovation in talent assessment. Dr. Handler has helped companies such as Intuit, Wells Fargo, KPMG, Scotia Bank, Hilton Worldwide, and Humana to design, implement, and measure impactful employee selection processes. Dr. Handler holds a M.S. and Ph.D. in Industrial/Organizational Psychology from Louisiana State University, USA.
  70. 70. 70 Defining Fit Organizational psychologists have traditionally defined fit in two distinct ways. Both definitions can play an important role in providing the data needed to help make quality hiring decisions, but they do so in different ways. Person-Job Fit. measurement of “hard” information about a candidate’s suitability for the tasks that are required for successful performance of a specific job. “Hard” aspects of P-J Fit include things such as a candidate’s specific skills, their levels of knowledge about specific subject matter, and their cognitive abilities. Person-Organization Fit. less common of fit to be systematically measured during the hiring process using scientifically designed tools. Outcomes of Fit Probably the most notable outcome of a good P-O Fit is increased tenure., fit has been linked to increased worker satisfaction, organizational commitment, and organizational identification. There are many positive outcomes of a good P-O Fit. Potential Problems with Using Fit Less objective nature of the dimensions that make up P-O Fit. Transcend the actual duties associated with a specific job.
  71. 71. 71 Practical Tips About Fit quick overview of ideas for companies.  Build fit into your employment brand. Communicating these values in your recruitment brand.  Use P-O Fit data to compliment P-J Fit data. It’s important not to use P-O Fit data as the sole criteria when making hiring decisions. Good hiring decisions should always be based on multiple sources of information.  Use fit to optimize teams when making internal assignments. An inventory of values collected during the hiring process can be used to help ensure that an employee is not assigned to a work group that has a culture that is not in line with their values.  Study the impact of P-O Fit. It’s important that organizations choosing to use fit should really challenge themselves to try and collect some data regarding its impact on objective criteria other than tenure.
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