Selection, Placement,
and Job Fit
5
Rawpixel Ltd/iStock/Thinkstock
Learning Outcomes
After reading this chapter, you should be able to do the following:
• Recognize the benefits and risks associated with effective or ineffective employee selection.
• Identify a wide range of criteria that employers use to select the right employees.
• List, describe, and assess commonly used employee selection tools.
• Apply the concepts of validity and reliability to various selection methods.
• Describe the laws and regulations governing employee selection.
• Identify emerging trends, opportunities, and challenges in selection.
111
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Introduction
Introduction
Selecting the right employees is one of the most crucial HR processes, but it is also one of the
most challenging decision-making processes in an organization. An effective selection process should help the organization choose from a group of applicants: those who fit certain
jobs and also fit the organizational culture. Failing to hire the right people will negatively
impact performance, quality, and productivity, while increasing the turnover rate. It can also
lead to litigation and compromise the organization’s reputation if the selection process is discriminatory. The cost of a wrong hire has been estimated to be 1.5 to 5 times the annual cost
of the employee (Muller & Baum, 2011).
On the other hand, choosing the right people will enable the organization to compete more
effectively and attain its goals and objectives. Selecting the right candidate for the job and the
organization is critical to create a human-based competitive advantage because many organizations may have ready access to the same applicant pool and information, especially now
that most recruitment efforts are mediated through technology. Figure 5.1 summarizes the
selection process as a component of strategic human resource management and outlines the
topics discussed in this chapter.
Opening Case Study
First Data is Hiring . . . Big Time!
Access the following links:
https://www.firstdata.com/en_us/about-first-data.html
https://www.firstdata.com/en_us/about-first-data/careers-home/search.html?datePosted
=all&page=1&req=&jobTitle=
First Data is one of the first and largest payment processing companies in the world, with
operations in over 70 countries, and millions of clients worldwide. Hiring is an ongoing process at First Data. As the second link above demonstrates, at any point in time, there could
be over 1,000 job openings at First Data. Hiring 1,000 new employees is not an easy task. HR
professionals and hiring managers need to spend many hours weeding through hundreds,
sometimes thousands of resumes and application forms, verifying qualifications, interviewing
applicants, conducting assessments, and negotiating job offers.
Selecting the wrong candidate for the job can be detrimental to subsequent performance and
morale. If the employee leaves, the hiring cycle has to be repeated to find a replacement, which
is often time consuming and disruptive to operations. First Data is also known for its very high
standards of performance, professionalism, and job fit, as well as frequent layoffs and reorganization to maintain competitiveness, innovation, and responsiveness to fast-changing market
needs. Whether the wrong fit results in turnover or a layoff, selection mistakes can be costly
and time consuming. That is why it is critical to have the right selection criteria, and to follow
a systematic approach in finding the right candidate that best fits each job opening. In many
respects, selection resembles a marriage. The more diligent both sides are in learning about
each other and considering their unique characteristics before they commit, the more likely
the relationship is to thrive, and the more headaches can be spared later.
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Introduction
Figure 5.1: Selection and job fit
Benefits and
benefit
administration
Strategic HR
planning
Compensation
Training and
development
Job analysis
and job design
Attraction and
recruitment of
talent
Performance
appraisal/
management
Selection
and job fit
Determining
selection
criteria
Enhancing
employee
motivation,
productivity,
and
retention
Assessing
validity &
reliability
Achieving
organizational
& job fit
Ensuring
legal
compliance
Choosing
selection
tools &
procedures
HR seldom makes any hiring decisions within an organization. The final decision regarding
who to hire is often made by the hiring manager. The role of HR is to act as a consultant, advisor, facilitator, and coordinator in the hiring process in order to ensure that it is conducted
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Section 5.1
What Should You Select For?
objectively and legally across the organization. In some cases, following a structured process
that is governed by many administrative policies and procedures may appear to the hiring
managers to be tedious and unnecessary, especially when there is an immediate opening to
be filled, and a good candidate who is prepared to fill it. However, as you will learn in this
chapter, a formal and valid selection process yields solid evidence about an applicant’s character, credibility, competence, motivation, and cultural fit, which can lead to a better hire and
spare the organization unnecessary time, resources, and legal and reputational costs (Muller &
Baum, 2011).
5.1 What Should You Select For?
Many employers have the unrealistic expectation that an ideal candidate can be found to fill
the job if the organization uses the right recruitment tools and then offers the candidate a
package that he or she cannot refuse. However, this is rarely the case. Instead, an organization
first needs to determine the specific factors that are critical for success in the job in question,
and then direct its recruitment and selection efforts accordingly. Applicants can then be evaluated based on those factors, and those who rank highest on these factors should be selected.
This section describes some of the most important factors that organizations consider in
employee selection.
1. Individual Differences
Individual differences refer to a wide
range of personal traits that tend to be
stable over time and across situations.
These traits can be genetically determined. They can also be “hardwired”
in the brain at an early age through
the influences of cultural background,
upbringing, early childhood and adolescence experiences, or a combination
thereof. The following are examples of
such stable traits:
Noel Hendrickson/Photodisc/Thinkstock
The best candidate for a job should be chosen based
on a set of factors specific to the job in question.
• General mental abilities
(GMA) or, simply, raw intelligence as measured by recognized intelligence quotient
(IQ) tests (Schmidt, 2009)
• The Big Five personality traits of conscientiousness, extroversion, agreeableness,
emotional stability, and openness to experience (Barrick & Mount, 1991)
• The core self-evaluations of self-esteem, generalized confidence, neuroticism (the
opposite of emotional stability), and locus of control (Judge & Bono, 2001)
• Character strengths and virtues, which have also been identified in the emerging
field of positive psychology (Peterson & Seligman, 2004)
Individual differences are important for employee selection because they can contribute to
or limit one’s potential for growth and development. Because they are stable in adults, individual differences are extremely difficult if not impossible to change through HR initiatives
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Section 5.1
What Should You Select For?
such as training and motivation. Thus, organizations need to determine the traits that are
critical for success in various positions and then ensure that they select employees who possess those traits. For example, extroversion is supported as a critical success factor for sales
jobs. However, since extroversion is an individual difference, it is difficult to increase someone’s level of extroversion. Therefore, an organization should hire extroverted individuals to
fill sales jobs, because it cannot effectively turn introverted employees into more extroverted
ones through training, rewards, or other approaches.
Job analysis and job design (discussed in Chapter 3) can contribute to accurately determining
the right traits for each position. To determine the extent to which applicants possess these
desired traits, HR uses various individual differences measurement tools. Most of these tools
are based on what is called individual differences psychology or differential psychology, which
mainly focuses on analyzing and interpreting the behavioral tendencies that distinguish one
individual from another by recognized traits. Personality tests are the most commonly used
individual differences assessments.
Examples of well-researched personality tests are the Big Five personality test and the Core
Self Evaluations inventory. Unfortunately, these are not the most commonly used tests.
Instead, many organizations design their own tests or purchase commercially available
assessments, which may or may not be backed up by sufficient research. For example, many
organizations use the Myers-Briggs Type Inventory (MBTI). This assessment tool has its
proper uses. However, its effectiveness, and thus the legality of its use for selection purposes,
is questionable. Many assessments are also costly to buy and administer, further highlighting
the importance of selecting the most effective selection tools—a topic that will be revisited
later in this chapter.
Web Links
The Big Five Personality Test
http://www.outofservice.com/bigfive/
Follow this link to learn more about the Big Five personality traits and complete a
personality assessment.
http://timothy-judge.com/CSES.htm
Follow this link to view the core self-evaluations inventory.
2. Human Capital: Knowledge, Skills, Abilities,
and Other Variables (KSAOs)
Job applicants also vary in education, experience, prior training, and physical, mental, and
emotional abilities. These factors are not necessarily based on individual differences but can
be determined by applicants’ current achievements. Although KSAOs are not stable personality traits, developing them can be costly and time consuming. Many organizations, therefore,
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Section 5.1
What Should You Select For?
require some level of the necessary
KSAOs as qualifications for each job.
Numerous studies show that human
capital is strongly related to firm performance (Crook, Todd, Combs, Woehr, &
Ketchen, 2011).
For a particular job, the organization
must first determine the KSAOs required
to perform the job’s tasks and responsibilities. This determination usually
takes place at the stages of job analysis and job design. Then the organization needs to employ valid and reliable
assessment techniques to accurately
measure the extent to which job applicants possess the desired KSAOs. The
following are examples of assessments
for various fields:
Thinkstock Images/Stockbyte/Thinkstock
Knowledge and skill assessments can include
certification exams such as those completed by
teachers, medical technicians, and electricians.
• Licensure exams assess knowledge for fields such as medicine and engineering.
• Law certification exams assess skills such as those often completed by teachers,
electricians, plumbers, and other technicians.
• Physical fitness tests assess physical ability, such as the ability to lift a certain
amount of weight or stand for a given period of time.
3. Social Capital
Social capital is the value added through interpersonal relationships, interactions, and networking (Adler & Kwon, 2002; Luthans & Youssef, 2004). In an organizational context, social
capital emphasizes building a positive organizational culture in order to achieve the organization’s ultimate goals and objectives. HR practices that build social capital include the
following:
• Selecting job applicants with strong industry and community connections to
whom they can promote the organization and from whom they can bring new
business
• Selecting qualified employees and placing them in jobs that fit their qualifications
• Using motivational tools and reward systems
• Promoting a positive work environment and an organizational culture that focuses
on collaborative work practices such as team-based organizational design, mentoring, coaching, employee participation, and empowerment
For example, many contracting jobs favor candidates who have established connections
with potential clients. Candidates who possess social capital also find it easier to locate
and land job offers than those who lack these connections. Despite its importance, social
capital tends to be subjective, vaguely defined, or defined differently from organization
to organization. These factors make social capital difficult to measure and therefore
difficult to leverage for HR selection purposes. Nevertheless, social capital has been shown
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What Should You Select For?
Section 5.1
to be related to success, especially in small entrepreneurial firms (Stam, Arzlanian, &
Elfring, 2014).
4. Positive Psychological Capital
Employees’ psychological states have a direct impact on shaping the organizational culture
and environment. Unlike traits, psychological states are cognitive, affective, and social
capabilities that are open to growth, development, and change over time and across situations. Recognized as being particularly relevant for the workplace is positive psychological
capital, a multidimensional concept that encompasses four psychological resources:
• Confidence (self-efficacy): The ability to take on challenging tasks and make the
efforts necessary to accomplish them successfully
• Optimism: Attributing positive reasons and causes to present events and future
success
• Hope: Persevering toward goals and redirecting paths as necessary
• Resilience: Bouncing back from adversity (Luthans, Youssef-Morgan, & Avolio, 2015)
Psychological capital has been shown to positively relate to many desirable employee attitudes, behaviors, and performance (Avey, Reichard, Luthans, & Mhatre, 2011), which in turn
can translate into human-based competitive advantages. Similar to KSAOs, psychological capital can be trained and developed. However, organizations may also want to select applicants
based on their psychological capital if there is CMS 5.131 limited time or resources to develop
employees, or if the organization is seeking to make the culture more positive.
For example, Seligman (1998) conducted a fascinating set of studies on the sales force of
Metropolitan Life Insurance. At the time, the company was basing selection decisions on the
results of an industry-recognized test that measured applicants’ technical knowledge. However, Seligman believed that being a successful salesperson requires high levels of positivity,
and he suggested that positivity might be even more important than technical skills. To test
this notion, Seligman convinced Metropolitan Life to hire a “special force” of applicants who
actually failed the industry test, but who scored highly on a test that he had designed to measure optimism, a recognized dimension of positivity. Interestingly, optimists who failed the
industry test outperformed pessimists who passed it, indicating that positivity may be more
important to job performance than skills!
Other positive psychological resources that are being explored as potential additions to psychological capital include creativity, courage, mindfulness, flow, authenticity, spirituality, emotional intelligence, gratitude, and forgiveness. Because these resources are showing promise
in terms of job performance and many other desirable outcomes in the workplace such as
satisfaction, commitment, and health and well-being, managers are starting to pay attention
to these capabilities when selecting future employees (Luthans et al., 2015).
5. Attitudes
Employees’ attitudes towards their jobs, their coworkers, and the organization can shape
their behavior, performance, and success in their jobs. Employees with positive attitudes
have a more constructive influence on the success and fulfillment of organizational goals and
objectives than employees who have more education and experience but also have a negative
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Section 5.2
Job Fit
attitude (Sartain, 2003). A positive attitude can manifest through a high energy level and
enthusiasm, passion for learning, curiosity to explore and experiment, motivation to succeed,
and desire to do what is good for the organization.
Attitudes are difficult to change because they are affected by a myriad of factors that may
be beyond the organization’s control, such as satisfaction with other life domains (Judge &
Ilies, 2004). Although attitudes are not considered fixed traits or individual differences, many
organizations will nevertheless select an applicant with the “right” attitudes that fit the organization’s goals, culture, and job requirements, instead of attempting to develop these attitudes in those who may lack them. Organizations use many tools to assess attitudes such as
job satisfaction, work engagement, and organizational commitment in potential and current
employees (Harter, Schmidt, & Hayes, 2002). Surveys are the most commonly used attitude
assessments. However, many of the available attitude assessments must be administered
carefully, with special measures, since applicants can fake attitudes to gain jobs or to profess
socially desirable traits (Mueller-Hanson, Heggestad, & Thornton, 2003).
For example, many organizations regularly administer “climate surveys,” asking employees to
report on their satisfaction with their jobs, supervisors, and coworkers, and their intentions of
staying with the organization. However, many employees would be reluctant to respond truthfully (or at all) to those surveys unless anonymity is guaranteed. Examples of well-designed attitude assessments are Allen and Meyer’s (1990) Organizational Commitment Scale and Gallup’s
Q12 scale for measuring work engagement (Harter et al., 2002). Gallup’s scale has been found to
be an effective measure, but its costs should be considered, since it is also proprietary.
Prioritizing Selection Criteria
The goal of the selection process is to identify the best candidates who possess the most
influential qualities a job requires and who fit the organizational culture well. These qualities
include a combination of critical KSAOs; appropriate experience and education; and personal
characteristics, traits, and attitudes. However, assessing too many criteria can be costly and
time consuming. It may also result in too few qualified applicants and unfilled positions. On
the other hand, assessing too few criteria can yield too many qualified applicants to screen
and select from, which can also be costly and time consuming. This information overload can
also result in subjective, legally questionable decisions.
Thus, it is wise for an organization to prioritize its selection criteria based on the results of
its HR planning, job analysis, and job design. A recruiting team is often assembled to contribute to the prioritization, including HR representatives, the hiring manager, successful future
coworkers, direct reports, and internal and sometimes even external customers. Employee
selection is a balancing act and a process of optimizing across multiple criteria, rather than
maximizing one criterion at the expense of others.
5.2 Job Fit
Hiring the best candidates is important, yet compatibility between a candidate, the organization, and the position is critical for the candidate to be successful, and for the organization to
be able to leverage the candidate’s talent to achieve its goals and objectives. Thus, while it is
necessary to use the criteria described in Section 5.1 to select a candidate, it is insufficient to
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Section 5.2
Job Fit
consider these criteria alone. It also important to optimize the match between the characteristics of candidate, the organization, and the job.
Person-Organization Fit
It is very important for organizations to recruit qualified individuals with the optimum skill
sets matching the organizational goals and objectives (Chuang & Sackett, 2005). To attract
and retain these qualified individuals, companies must match an applicant’s characteristics
with the organizational environment or culture and then maintain that match during the term
of employment.
Person-organization fit can be defined
as the extent of resemblance between
the personal core values and beliefs of
individuals and the norms, rules, regulations, and values of the organizations
where they work. Studies show that
employees are mentally and physically
more sound when they are comfortable with the organizational environment. A strong employee-organization
fit has been demonstrated to relate to
increased performance, job satisfaction, and organizational commitment,
Cathy Yeulet/Hemera/ThinkStock
as well as decreased strain and inten- The selection process should take into account
tion to quit (Kristof-Brown, Zimmer- a candidate’s ability to fit in with organizational
man, & Johnson, 2005). Person-orga- culture, as well as his or her skills and abilities.
nization fit is therefore an important
selection consideration. For example,
an individual who is willing to take risks would find an organization that values creativity
and innovation to be a good fit, while an individual who prefers stability and structure would
find an organizational culture that emphasizes predictability to be a better fit. Similarly, an
extroverted individual will be more likely to fit in an organizational culture that emphasizes
teamwork and collaboration, while an introvert would be a better fit with an organization
that values individual achievements.
Person-Job Fit
It is also significant for companies to establish and promote a robust fit between an employee
and a job. According to Edwards (2008), person-job fit occurs when the demands of the
job are compatible with the capabilities of the incumbent and when the needs and preferences of the incumbent are met by the job. Recruits come to organizations with different
combinations of KSAOs. It is the organization’s responsibility to match those KSAOs with
the job needs, requirements, and necessary qualifications. This match ensures that all the
duties, responsibilities, and tasks associated with the job will be accurately and efficiently
accomplished.
From an employee’s perspective, a job is deemed satisfactory when it lives up to his or her
expectations, fulfills most of his or her professional needs, and balances them with personal
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Selection Methods
Section 5.3
life. Employees are believed to pursue and accept job offers much less in accordance with
objective evaluations than with subjective evaluations and personal perceptions of whether
or not a job fits them well (Caplan, 1987). Person-job fit, like person-organization fit, has
also been shown to relate to a number of desirable work attitudes, behaviors, and performance outcomes. Person-job fit is therefore critical for effective selection (Kristof-Brown et
al., 2005).
5.3 Selection Methods
Common selection methods organizations use to gain information about and narrow down
potential candidates are resumes and application forms, testing, interviews, reference checks,
honesty tests, medical exams, and drug screening.
1. Resumes and Application Forms
Job applications and resumes are the organization’s initial method of collecting information
about potential recruits. A major downside of resumes and job applications is the considerable and unmanageable volume of them that HR departments receive. In most cases, it is
extremely challenging to control or carefully consider all these documents. Application forms
assist in gathering basic information about applicants that can be grouped into four main categories: contact information, work experience, educational background, as well as the applicant’s signature validating all the information indicated in the application form.
Resumes, on the other hand, are controlled by the applicants rather than the employers,
which introduces a source of bias and inaccuracy not present in application forms. However,
resumes provide an economical method for collecting initial information, identifying potential hires with the basic requirements such as job experience and educational background,
as well as selecting applicants for further consideration. Although sometimes misleading,
resumes provide applicants more freedom in expressing themselves and highlighting personal experiences that structured application forms may not permit.
2. Testing
The next logical step after candidates have been initially screened through resumes and job
applications is to test those applicants in order to further screen and narrow down the choice
to a few top candidates. This is the main objective of conducting such tests. In broad terms,
there are two main types of tests that organizations employ: aptitude tests and achievement
tests.
Aptitude refers to how quickly or easily one will be able to learn in the future (Carter, 2007).
Aptitude tests evaluate the test taker’s level of reception, comprehension, and retention. The
most prominent aptitude test is called the General Aptitude Test Battery (GATB). Achievement
tests, on the other hand, determine the individual’s current KSAOs. In other words, achievement tests are qualification examinations to ensure that applicants are ready to perform the
tasks they are recruited for.
Organizations can use many other forms of tests, depending on the type of job involved. For
example, physical ability tests are conducted only for jobs demanding certain physical job
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Section 5.3
Selection Methods
performance requirements, for the purpose of mitigating injuries related to certain job activities (Buffardi, Fleishman, Morath, & McCarthy, 2000; Hogan, 1991).
The cognitive ability test, also referred to as the intelligence test, is primarily designed to
assess the applicant’s mental abilities. Such tests are particularly relevant for complicated
jobs demanding considerable mental capabilities (Salagado, Anderson, Moscoso, Bertuas, &
De Fruyt, 2003; Ree, Earles, & Teachout, 1994). Job performance tests, also commonly referred
to as work sample tests, are also used by organizations for specialized types of jobs demanding continuously high productivity and performance, such as keyboarding or high-volume
machine operation. Job performance tests are mostly conducted through simulations of the
actual work setting (Winkler, 2006).
3. Interviews
Many employers prefer to directly interact with their future employees, usually
face to face, for a more accurate evaluation of their communication skills, interpersonal skills, and technical experience
and knowledge. That is why the job interview is one of the most commonly used
selection tools in employment. There are
several types of interviews that organizations use. These types of interviews are
listed and described below. Examples of
each type of interview and tips for successfully conducting them (as an interviewer) or doing well at them (as an
interviewee) are provided in the links
that follow.
RubberBall/RubberBall/Superstock
Job interviews are one of the most commonly used
hiring tools, and they come in many shapes and
sizes.
• Unstructured interviews mostly
involve open-ended questions.
The interviewee’s answer to one question determines the interviewer’s progression to the next question. Questions are often related to personal career objectives
and expectations, as well as points of strength and weakness. A major problem with
unstructured interviews is their inability to stand up to scrutiny from the standards
of the Uniform Guidelines on Employee Selection Procedures if challenged in court.
The Uniformed Guidelines were established to aid hiring agencies in complying with
Federal laws regulating employment practices (Biddle Consulting Group, 2015). A
review of Federal Court cases between 1978 and 1997 involving charges of discriminatory hiring demonstrated that unstructured interviews were challenged in court
more often than any other selection device and in 41% of the cases the unstructured
interview was found to be discriminatory in nature (Terpstra, Mohamed, & Kethley,
1999).
• Structured interviews follow a set of pre-established questions that mainly focus
on the interviewee’s knowledge, work experience, and technical skills. Structured
interviews provide organizations with more valid and reliable results compared to
unstructured interviews.
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Section 5.3
Selection Methods
• Situational interviews depict a real work-related scenario that interviewers present
to the interviewees to evaluate their problem-solving capabilities (Clavenger, Perreira, Weichmann, Schmitt, & Harvey, 2001; McDaniel, Morgeson, Finnegan, Campion, & Braverman, 2001).
• Behavior description interviews allow the interviewees to describe how they handled
a certain past situation to assess their experiences (Campion, Campion, & Hudson,
1994; Pulakos & Schmitt, 1995).
• In panel interviews, two or more representatives from the organization meet in a
group setting with the interviewee. This type of interview has the advantage of using
multiple raters; hence, it is less biased.
Web Links
Structured, unstructured, and semi-structured interviews
http://www.youtube.com/watch?v=nrDONsoVoXE&feature=related
Situational interviews
https://www.youtube.com/watch?v=FQHneHS7P_Q
Behavioral interviews
https://www.youtube.com/watch?v=qKBubKO-798
Panel interviews
http://www.youtube.com/watch?v=eX4ofZoN6Zw
Discussion Questions
1. Which of the above types of interviews have you encountered in the past? Describe the
nature of the job, the characteristics of the interviewer(s) and the interviewee, the setting, and the flow of the interview.
2. As an interviewer, which type of interview are you most and least comfortable with? Why?
3. As an interviewee, which type of interview are you most and least comfortable with? Why?
4. Select jobs that may best lend themselves to each type of interview. Explain your
opinions.
4. Reference Checks
Application forms often ask applicants to provide reliable reference sources, such as former
employers, so that organizations can verify applicants’ capabilities and past experiences. In reality, however, references are not a very reliable source for verifying information since applicants
are careful to choose only references that are most likely to present them in a favorable light.
Providing references for former employees can be risky for employers due to possible lawsuits. For example, positive references can trigger lawsuits when new employers claim they
have been misled if an employee’s conduct has not been as expected after a certain period of
employment (Long, 1997). On the other hand, negative references can cause former employees
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Foundational Concepts in Designing and Evaluating Selection Methods
Section 5.4
to claim defamation and loss of reputation, even with limited evidence (Ryan & Lasek, 1991).
For these reasons, organizations should be cautious in providing former employees with references, carefully focusing only on job-related experience and behavior rather than treading
into personal opinions that might be misinterpreted. However, such references may leave
organizations with narrower descriptions of applicants’ past performances, which undermines the purpose of their seeking out references in the first place.
5. Honesty Tests, Medical Exams, and Drug Screening
Some jobs involve physically demanding tasks and responsibilities. Accordingly, many organizations conduct medical and fitness examinations to ensure that employees are capable of
successfully performing the assigned job requirements. Another purpose of these tests is to
determine applicants’ initial physical status, prior to employment, for future evaluation in
case of a work-related injury or disability. Organizations must practice extreme caution in
using physical examinations for potential recruits to avoid any discriminatory claims.
Employees are also expected to maintain acceptable levels of honesty and integrity inside
and outside the organization. Although reference checks and interviews can assess honest
behavior, some organizations rely on more direct verification methods, such as honesty tests.
Honesty tests using the polygraph were banned in 1988 and replaced with written integrity
tests that, although not as effective, have some ability to highlight negative behavioral issues
(Bernardin & Cooke, 1993; Ones, Viswesvaran, & Schmidt, 1993). However, research supports
the validity of these tests (Van Iddekinge, Roth, Raymark, & Odle-Dusseau, 2012).
Furthermore, employees are expected to not to engage in unsafe behaviors such as the use
of illegal drugs or the abuse of controlled substances. Alcohol and drug screening is an accurate and reliable method for exposing substance abuse. However, many individuals see alcohol and drug screening as a controversial privacy invasion that can lead to false accusations
of substance abuse. Some organizations avoid these problems by relying on other types of
testing, such as impairment and fitness tests for duty programs, which mainly assess mental
abilities in carrying out critical tasks rather than analyzing the root cause of impairment.
5.4 Foundational Concepts in Designing
and Evaluating Selection Methods
The goal of the selection process is to accurately and consistently predict future job performance through assessing a predetermined set of factors that are believed to be related to
applicants’ ability or motivation to perform the job. For example, organizations often hire
applicants with the highest scores on a particular test, or those who received the most favorable ratings on an interview. The underlying assumption and rationale for this common
approach is that test scores or interview ratings are accurate and consistent predictors of
subsequent job performance.
However, job performance can never be predicted with 100% accuracy or consistency. The
only way to reach perfect accuracy would be for employers to hire all the applicants for a
particular job, have them perform the job, and then choose those with the highest performance. Of course this approach is neither practical nor cost effective. Moreover, even if an
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Foundational Concepts in Designing and Evaluating Selection Methods
Section 5.4
organization can afford to hire a large number of applicants and retain those with the highest performance, performance prediction is still not perfectly accurate. For example, many
organizations have probationary periods in which the employer and the employee “try each
other out” before a more permanent arrangement is established. However, employees may
be motivated to perform at a much higher level during the probationary period in order to
secure permanent employment. Once the probationary period is over, the employee’s performance level may drop. Moreover, even if overall job performance can be predicted accurately,
performance may be influenced over time and across situations by a myriad of factors that
cannot be anticipated or managed. This variation renders consistency in performance prediction a serious challenge in candidate selection.
It is impossible to make perfect predictions of job performance. However, there are many
recognized selection tools and methods that can make reasonably high-quality predictions
possible by accurately and consistently measuring or assessing important predictors that
are strongly related to specific job performance criteria. Accurate prediction of performance criteria is also referred to as high validity. It indicates that a predictor (e.g., test
scores or interview ratings) is significantly related to desirable performance outcomes, so
that those who measure favorably on the selection tool or method have a higher chance
of being high performers than those who do not. For example, if a valid test is used in the
selection process, then those who score higher on the test are also likely to perform better
on the job.
Consistency, also referred to as high reliability, indicates that a predictor can be replicated
over time and across situations. For example, a reliable selection procedure will reflect an
applicant’s aptitude, ability, and motivation to do the job. The procedure will not reflect the
subjective opinion of the interviewer, the temperature or noise level of the room where an
employment test took place, or other factors that are not related to the actual job (factors
that, if different, could have yielded a different score or decision as to whether or not the
organization should select the applicant).
Validity
Validity is the extent to which a selection tool or procedure can accurately predict subsequent performance. Validity is an extremely important factor to consider when designing or
evaluating selection methods. There are several reasons:
1. The more accurate the testing process is, the more likely it is that the best candidates will be selected, promoted, or matched with the right jobs.
2. Invalid or unreliable tests can be costly. Many tests need to be purchased or a license
of use must be obtained. Moreover, testing is time consuming for both the candidate
and for the organization. Tests must be administered and rated, and the results must
be reported—processes that require managers’ and HR professionals’ time and
energy.
3. The wrong tests carry such opportunity costs as wasted time and the lower
productivity of the employees hired or promoted because of their invalid test
results.
4. Finally, invalid testing has legal implications. An invalid test may not be related to
performance, but it may still be discriminatory by favoring certain protected classes
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Foundational Concepts in Designing and Evaluating Selection Methods
Section 5.4
over others. For example, younger job applicants may consistently score higher than
older applicants on a test, and these scores may not be related to job performance.
In such a case, that test may be found to be discriminatory. While the organization
may have had no intent to discriminate, the use of invalid, discriminatory tests can
result in what is referred to later in this chapter as disparate impact, which is also
illegal. Other legal considerations will be discussed in greater detail later in the
chapter.
Furthermore, when designing or evaluating selection methods, several dimensions of validity
should be taken into account (Robinson, 1981; Schmitt, Gooding, Noe, & Kirsch, 1984). Five
validity dimensions are multiple facets of the same concept and should be
considered in conjunction, rather than
individually:
1.
2.
3.
4.
5.
Criterion-related validity
Content-related validity
Construct validity
Face validity
External validity
First, criterion-related validity is the
predictive, empirical (number-based) link
AP Images/Ric Francis
between a predictor and an actual mea- The more accurate the testing process, the more
sure of job performance. Statistically, it likely it is that the best candidates will be selected.
is the correlation between applicants’
scores on the predictor and their subsequent job performance scores. This correlation ranges from 0 to ±1.00. Tests that yield validity coefficients ranging from ±.35 to ±.45 are considered useful for employment decisions,
while tests with validity coefficients of less than ±.10 probably have little relationship with
job performance.
For example, there are numerous valid measures of individual differences; of human, social,
and psychological capital; and of the job attitudes discussed earlier. Organizations should
make sure only valid measures are used for selection purposes. For the reasons listed above,
“interesting” personal or interpersonal characteristics should not be considered if they cannot be validly related to job performance. They are costly, time consuming, and distracting,
and they can be found discriminatory.
Criterion-related validity is established through building a track record for a selection tool.
For example, current employees can be assessed using the selection tool in question, and
their current performance can then be correlated to their scores on the selection tool. If the
correlations are sufficiently high and statistically significant, then the tool can be used for
selection. This correlation is referred to as concurrent validity. Alternatively, a new or experimental selection tool can initially be administered to applicants but not be considered for
selection. Selected applicants’ performances can then subsequently be measured and correlated to their initial scores on the selection tool. If the correlation is sufficiently high and
statistically significant, then the selection tool can become incorporated into the selection
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Foundational Concepts in Designing and Evaluating Selection Methods
Section 5.4
process and scores can be taken into consideration for selection decisions. This correlation is
referred to as predictive validity.
Second, content-related validity is the logical connection between the selection procedure
and the actual job. For example, interview or test questions should be directly related to the
important requirements for and qualifications of a job—the rationale being that if an interview or test samples actual job behaviors, then individuals who perform well on the interview or test will also be able to perform well on the job. Content-related validation studies
rely heavily upon information gathered in job analysis. If test questions are directly related to
the specific skills needed to perform a job, then the test will have high content-related validity.
Third, construct validity is the extent to which a selection tool accurately reflects the abstract
personal attributes, or constructs, that a tool intends to measure. For example, while there are
valid measures of many personality traits, numerous invalid measures of the same traits can
be found in magazines or on the Web. Invalid measures are sometimes even sold to organizations by consultants. Creators of those measures claim that they are beneficial, and the measures seem to make sense on the surface and to ask the right questions, but they should not be
used for employment selection purposes because their predictive power is questionable.
Fourth, face validity is related to content and construct validity. Face validity is not a form
of validity in a technical sense. It refers to applicants’, organizations’, or observers’ subjective impressions of how relevant a predictor is to a job. For example, a bank teller would
find nothing strange about taking an employment test that dealt with numerical ability or
money counting skills because these skills are obviously related to job performance. On the
other hand, the teller applicant may not see the job relevance of a personality test. This test
would, thus, have low face validity for this job. While it can be irrelevant in a scientific sense,
organizations should still pay close attention to the face validity of their selection procedures,
since low face validity can result in poor perceptions of the organization. If an organization
has a choice between multiple tools that are otherwise equally valid, the tool with higher face
validity should be used.
Finally, external validity refers to the generalizability of a selection tool or procedure. For
example, an interview protocol or employment test may be more valid in some job positions,
departments, organizations, industries, regions, or countries, than it is in others. Thus, predictors of performance need to be “revalidated” if the context in which they will be used is sufficiently different. On the other hand, if there are significant situational similarities, then the
predictive capacity of a selection process can be generalized. For example, many industries
rely on having passed recognized licensing exams or obtained certifications to deem their
applicants qualified for technical jobs within those industries.
Reliability
Reliability is the extent to which it is possible to replicate the results from a predictor such as
a selection tool, method, or procedure. For example, a reliable interview protocol should yield
the same conclusion about the same applicant, regardless of such irrelevant factors as these:
• Which interviewer was the applicant assigned to? If some interviewers are more
lenient, or if the interview protocol allows for subjective evaluations, then the interview protocol is unreliable.
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Increasing the Validity and Reliability of the Selection Process
Section 5.5
• In which room did the interview take place? If some rooms are known to be more
comfortable or conducive to higher-quality interactions than others, then all interviews should be scheduled in the same (or in a comparable) room to increase
reliability.
• What time of the day did the interview take place? If interviewers get more tired
toward the end of the day, this time may bias their evaluations of the applicants
interviewed at that time.
• What was the sequence of applicants? Interviewers may become more lenient or more
stringent over time. For example, an average applicant may be at a significant advantage if interviewed after a number of mediocre applicants, but may be at a significant
disadvantage if interviewed immediately after an exceptionally good applicant.
• Was the applicant in his or her normal state of being? If an applicant is interviewed
while he or she is ill, exhausted, agitated, anxious, or frightened, the results are likely
to be unreliable.
In other words, reliability is a reflection of the degree of error in a measurement, which also
conveys the stability of that measurement’s outcomes (Nunnally, 1994). Typically, assessing
reliability involves gathering scores for a particular predictor twice, then calculating
the correlation between the two sets of scores. This correlation is referred to as the reliability
coefficient, and it ranges from 0 to +1.00. The closer the score sets approach a perfect +1.00
correlation, the more reliable the predictor is said to be. For selection purposes, the two sets
of scores can come from scoring the same group of applicants or current employees twice on
the same procedure, while varying certain factors. For example, a test can be administered at
two different times, or an interview can be conducted twice using different interviewers, and
the scores can then be correlated to assess reliability. These approaches are respectively
referred to as test-retest reliability and inter-rater reliability.
Web Link
Valid and Reliable Psychological Assessments
www.mindgarden.com
This Web site provides validity and reliability information on a number of assessments suited
for evaluating various personality traits and developmental characteristics, many of which are
well suited to the workplace. The site also provides contact information to obtain permission
to use various tools and measures, many of which are free of charge.
5.5 Increasing the Validity and Reliability
of the Selection Process
Selecting candidates for employment entails the use of valid and reliable methodologies for
the selection process, ensuring that selected applicants fit the jobs they have been selected
for and fit the general organizational culture. Many organizations continually look for ways to
improve their methodologies, including creating and using more valid and reliable methods,
instituting better training, and linking selection to the HRM process.
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Section 5.5
Increasing the Validity and Reliability of the Selection Process
1. Better by Design: Creating
and Using More Valid
and Reliable Methods
Selection tools vary in their validity and
reliability. For example, resumes may
be more valid than application forms
because resumes allow applicants to
expand on their job-relevant qualifications, which may be more predictive of
job performance than the many unrelated pieces of information on generic
AndreyPopov/iStock/Thinkstock
job applications. On the other hand,
Resumes allow applicants room to expand on
application forms may be more reliable
their qualifications, but applications ensure
because their structured format makes
that the most critical, relevant information is
it harder for applicants or employers to
communicated.
overlook or intentionally omit relevant
information. This reliability is one reason many organizations require applicants to submit a resume and also complete an application form.
Similarly, unstructured interviews may be valid since they allow the interviewee to elaborate
on their unique capabilities and experiences. However, unstructured interviews are less reliable than structured interviews, especially in inter-rater reliability, since each interview may
vary on the topics covered, the questions addressed, and thus the conclusions that interviewers may reach about each applicant. It is crucial to investigate the validity and reliability of
various selection tools and procedures before using them. Using a variety of selection tools
and procedures is also one of the best ways to increase the overall validity and reliability of
the selection process.
2. Better by Implementation: Training Those
Who Select and Overcoming Personal Biases
Selecting the right candidates usually involves some subjectivity, which may compromise the
validity and reliability of the selection process. Since unstructured interviews are commonly
used in selection, it is logical for organizations to prepare a well-equipped team of interviewers. It is also essential that interviewers are trained to determine the most relevant questions
to ask based on their evaluation of the background and experience of the applicant in question. Interviewers must exercise extreme caution in selecting questions. Each question must
have a clear and insightful job-related, rather than personal, purpose.
Although extensive training of interviewers might be costly, it can also help organizations
avoid the substantial costs associated with the inadequate selection of employees, as well as
potential litigation due to discriminatory selection. The same fact applies to all those involved
in screening resumes initially, calling the applicants’ references, preparing job offers, or conducting other stages of the selection process. Interviewers are less likely to operate on personal biases when they have a clear understanding of the job and are adequately trained to
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Legal Issues in Selection
Section 5.6
assess applicants for their fit with the job and the organization. Sensitivity training familiarizes managers and employees with issues of diversity, discrimination, and harassment. This
training has become common in many organizations, which helps their members become
more aware of their potential prejudices.
3. Better by Integration: Linking Selection to the HRM Process
As emphasized in every chapter, the purpose of the HRM process is to help an organization achieve its goals through enhancing the effectiveness of its people. This purpose is
realized by aligning the HRM objectives with those of corporate objectives and strategic plans. Linking the staffing process, which includes selection, with planning, employee
compensation, and work design, will ensure that all processes mesh effectively and have
a unified goal.
Careful planning, job analysis, job design, and recruitment can yield a smoother and more
effective selection process because they provide a high-quality applicant pool to choose from.
Well-designed compensation and benefits, training and development opportunities, and performance feedback can also facilitate selection by making the organization attractive to qualified applicants.
In turn, enhancing the selection process can facilitate other HR functions. Employees are
more predictable when they are selected using valid and reliable procedures. Their performance level is more likely to be adequate and consistent. When organizational and job fit are
carefully considered in the selection process, the process is likely to yield employees who
stay longer, have better attitudes, and are more satisfied with their jobs (Kristof-Brown et al.,
2005). Planning for, training, and assessing this type of workforce is significantly easier than
would be the case in an organization with high turnover and dissatisfied, low-performing
employees.
5.6 Legal Issues in Selection
By their very nature, employee selection methods attempt to differentiate between candidates who possess requisite job skills and those who do not. When selection methods treat
applicants differently based on other factors such as race, age, or gender, they are said to be
discriminatory. Obviously, it is imperative for HR professionals to understand the rights and
obligations of both the company and the job candidate in this sensitive area. This section,
while not exhaustive, highlights landmark discrimination legislation and how it has affected
organizations’ selection processes.
Equal Employment Opportunity
As introduced in Chapter 4, Title VII of the Civil Rights Act prohibits discrimination based on
sex, religion, race, color, or national origin in hiring, promoting, firing, setting wages, testing,
training, apprenticeship, and other terms and conditions of employment. The Equal Employment Opportunities Commission (EEOC) enforces Title VII and facilitates its application
in organizations through education and technical assistance. EEOC also enforces laws that
prohibit discrimination based on other protected classes such as disability and age.
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Legal Issues in Selection
Section 5.6
Age Discrimination
Age discrimination occurs when an employer treats an employee differently based on his
or her age, and is legally defined in the Age Discrimination in Employment Act (ADEA)
of 1967. The ADEA is a federal law and protects all employees in the United States over
the age of 40 from the moment they contact an employer about a job opening. Specifically,
this law forbids employers from making employment decisions based on a person’s age. For
example, employers cannot terminate employment, deny a bonus or raise, or refuse to hire
or promote someone simply because they think that person is too old. However, it is important to note that persons under age 40 are not protected under the ADEA. Thus, it is possible,
without legal repercussions, for an organization to discriminate against an individual for
being too young.
Discrimination Based on Disability
As discussed in Chapter 3, the Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against disabled employees who are otherwise qualified. A disability is a physical
or mental impairment that substantially limits one or more major life activities. Examples of
individuals with physical disabilities include people with epilepsy, diabetes, severe forms of
arthritis, hypertension, paraplegia, impaired vision, and carpal tunnel syndrome. Individuals
with mental impairments include people with major depression, bipolar (manic-depressive)
disorder, autism, and mental retardation. The law also makes it unlawful to discriminate
against any applicant or employee, disabled or not, based on that person’s relationship or
association with an individual with a disability.
The ADA forbids discrimination against people with disabilities in all areas of employment.
In addition, it is unlawful for an employer to retaliate against an applicant or employee for
asserting his or her rights under the ADA. However, an individual with a disability must be
able to perform the essential functions and meet the qualifications of the job, with or without accommodation, in order to be protected by the ADA. In other words, the person must
satisfy requirements for education, employment experience, skills, licenses, and any other
job-related qualification standards. Additionally, the employer must provide any reasonable
accommodation that a person with a disability needs in order to apply for a job, perform
a job, or enjoy benefits equal to those offered to other employees. The employer does not,
however, have to provide any accommodation that would impose an undue hardship on the
organization.
Other Employment Laws
Several other laws are also relevant for employment in general and employee selection in
particular. For example, as early as 1935, the National Labor Relations Act (NLRA) of 1935
legalized unionization and collective bargaining. Shortly prior to the Civil Rights Act of 1964,
the Equal Pay Act of 1963 prohibited pay differentials for equal jobs across genders. The
Pregnancy Discrimination Act of 1978 also prohibits dismissal of an employee due to pregnancy and ensures job security during maternity leave.
More recently, the Immigration Reform and Control Act of 1986 prohibits hiring illegal aliens.
The Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires a 60-day
notice prior to closedown or massive layoffs. The Employee Polygraph Protection Act of 1988
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Section 5.6
Legal Issues in Selection
limits the scope of lie detector use and
prohibits it as the sole determinant in
hiring and firing decisions. Finally, the
Family and Medical Leave Act (FMLA)
of 1993 affects organizations that employ
50 or more workers. Employees who
have worked at such organizations for at
least one year are granted up to 12 weeks
of unpaid leave for family or medical reasons in any given one-year period. The
recent Patient Protection and Affordable Care Act (PPACA) increases the
responsibilities of employers, employees, and insurance companies to expand
coverage, accessibility and affordability
of healthcare benefits. The following two
links provide updates on pertinent
employment laws.
AP Images/Greg Gibson
In February 1993, President Clinton signed the
Family and Medical Leave Act. This act grants
qualified employees up to 12 weeks of unpaid
leave for family and medical reasons in any given
one-year period.
Web Links
Summary of Major HR Laws
http://www.dol.gov/opa/aboutdol/lawsprog.htm
Patient Protection and Affordable Care Act
http://www.dpc.senate.gov/healthreformbill/healthbill04.pdf
In the first link, the U.S. Department of Labor provides a summary of major HR laws. Various links on this page also provide more details and assistance with interpreting the statutes
and regulations governing employment in the United States. The second link summarizes the
Patient Protection and Affordable Care Act.
Foundational Concepts for the Enforcement of Employment Laws
Several concepts are critical for the implementation and enforcement of the above employment laws. For example, illegal discriminatory practices can be in the form of disparate treatment or disparate impact. A policy or selection procedure may not explicitly discriminate
against members of a protected class (which would be a form of disparate treatment), yet this
fact does not make that procedure legal. If the procedure has a discriminatory effect (i.e., a
disparate impact), it can be illegal even if the effect is unintended.
For example, setting height or weight requirements for job applicants in a particular job may
not be intended as a discriminatory practice. However, because these requirements exclude
more women and certain racial groups that tend to be shorter or lighter, they can be found
discriminatory unless they are justified by specific job requirements. These job requirements
must create what is referred to as a business necessity.
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Legal Issues in Selection
Section 5.6
As a case in point, it has been found justifiable that an individual in a wheelchair may be denied a
job as a firefighter. On the other hand, for the same job category, height and weight requirements
have been replaced with job sample tests through which applicants would be evaluated on their
fitness levels and abilities to successfully carry out the physical job requirements, regardless of
their body types.
Similar to discrimination, harassment in the workplace can assume two forms: quid pro quo or
a hostile work environment. Quid pro quo (Latin for “this for that”) is a more explicit form of
harassment where the harassing member of the organization may require the harassed member
to exchange sexual favors against his or her will. A hostile work environment is a more subtle but
comparably illegal form of harassment. Some organizational members can create a hostile work
environment by offending others, causing them undue hardships, and hindering their abilities
to adequately perform their jobs. Examples include sexual or racial remarks or displays of inappropriate forms of art (e.g., posters that would make female employees uncomfortable). Unfortunately, many employees are unaware that their actions can cause their employers to be held
legally liable for a hostile work environment. For example, employees who use company email to
forward jokes with sexual, racial, or religious connotations, expose their employers to such risks.
It is also important to note that discrimination laws protect members of majority as well as
minority groups. For example, as discussed in Chapter 4 in the context of affirmative action,
some organizations may consider hiring less qualified women and minorities in the attempt
to appear less discriminatory and more diverse. However, these attempts can be found discriminatory against more qualified white male applicants, who have traditionally constituted
the majority of the working population. This “overcompensation” effect is referred to as
reverse discrimination and is illegal.
Finally, it is important to note that filing a claim with EEOC comes at no cost to the employee,
and that most of the laws discussed above also have clauses that prohibit employers from retaliating against employees who choose to report discriminatory practices. Once an employee
provides basic evidence of discrimination, the burden of proof shifts to the employer, who
may lack the documentation and evidence that would make it possible to prove the work
environment was not discriminatory. Discrimination lawsuits can cost the employer millions
of dollars in punitive damages. As mentioned earlier, employment laws cover not only current
employees, but also job applicants and past employees, making them particularly relevant for
selection as well as for all HR practices.
A Moment in the Life of an HR Manager
You Can’t Really Trust Your Gut Feeling About an Applicant
Most managers believe that they know a good applicant when they see one. However, in reality, they couldn’t be more wrong! Here are some examples:
1. Tom hires Paolo as a production worker because Paolo is an immigrant and Tom
believes that immigrants are hard workers. All the references listed in the application
gave Paolo favorable recommendations. Two weeks later, it turns out that Paolo is an
illegal alien. Paolo gets deported, and the organization is fined.
(continued)
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Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit
Section 5.7
A Moment in the Life of an HR Manager
You Can’t Really Trust Your Gut Feeling
About an Applicant (continued)
2. Sarah is sitting in the interview room, waiting to interview Andy for a sales job. Andy is
late and comes in with a big coffee stain on his shirt. Sarah concludes that Andy would
make a terrible salesperson because he is disorganized and poorly groomed; she cuts
the interview short and does not recommend Andy for the job. A month later, Andy
graduates with a GPA of 4.0 from a reputable school and accepts a more attractive job
offer with a competitor. A year later, Andy is promoted to sales manager for having
$5 million in sales, which is unheard of in that industry.
3. Jaime goes to diversity training and comes back convinced that the organization should
exert more effort and resources in hiring women and minorities. So, for the next six
months, she favors women and minorities in all of her selection decisions, even in cases
where there are more qualified white males in the applicant pool. As a result, performance suffers and the organization faces a class action lawsuit.
Despite these hiring managers’ good intentions, they have made critical selection mistakes.
As a result, they compromised the performance and reputation of their organizations. Tom
should have done due diligence in confirming Paolo’s immigration status, which would have
been more likely if he had given all applicants a fair chance and followed the proper procedures regardless of each applicant’s background. The same applies to Jaime. She should have
kept the job requirements front and center in her decision, rather than any applicant’s gender
or race. As for Sarah, she would have probably hired Andy had she still gone through the interview protocol and heard his amazing answers to the interview questions—answers that none
of the other applicants would have been able to give. But because she was too busy staring at
the coffee stain and supposing him to be disrespectful, rude, and undisciplined for being late
to the interview, she did not really listen to anything he said.
5.7 Opportunities, Challenges, and Recent Developments
in Employee Selection and Job Fit
Finding the right applicant for the job is a challenging task that requires a great deal of effort
and dedication. Some of the opportunities, challenges, and recent developments organizations face regarding selection have to do with legal and regulatory issues; sociocultural developments; global and competitive factors; employee motivation; morale, productivity, and
retention; and unions and labor relations.
Legal and Regulatory Opportunities and Challenges
in Employee Selection
In addition to the strategic and administrative responsibilities associated with selecting
and hiring a candidate, HR managers are also bombarded with legal aspects of employment
such as new legislation, managerial and executive orders, and court decisions. Maintaining
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Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit
Section 5.7
nondiscriminatory practices while determining employee eligibility and predicting performance are serious challenges that HR managers face on a daily basis. HR managers must exercise extreme caution to ensure that selection procedures are appropriately and purposefully
designed to address only information that pertains to a job.
On the other hand, organizations that successfully promote diversity in their workforces have
the tremendous opportunity to leverage unique talent and build a competitive advantage. For
example, diversity is one of the criteria behind Fortune magazine’s Best Companies to Work
For lists.
Sociocultural Developments: You May Have Selected Them, but
What Will Make Them Select You?
It is a very challenging process for organizations to attract qualified candidates for jobs
in a highly competitive and skill-demanding market. Moreover, it is an even bigger challenge to retain these talents, skills, and experiences within the organization. A considerable portion of employees’ attraction to a certain job and their satisfaction with it is their
personal perception of how well they fit in that job and in the general organizational culture. Many factors govern these perceptions, such as challenging tasks, good prospects for
growth and career advancement, job stability and security, assignments that carry interesting and meaningful responsibilities, the training and development of skills and talents,
reasonable working hours, favorable working environment with well-matched peers, recognition, respect, appreciation and self-actualization, fair treatment, company loyalty, and
recognition and assistance with employees’ personal needs. However, resources are necessary to keep this host of factors in place, and these resources are drying up quickly in light
of today’s cut-throat competition.
Moreover, significant shifts and challenges are expected to occur as organizations attempt to attract and retain
the millennial generation born from
the mid-1970s to the early 2000s. In
addition to the above expectations,
millennials tend to expect a lot of flexibility. They tend to take the norm as
being self-directed careers that constitute a long series of short-term jobs,
multiple income streams, and entrepreneurship. They are as unlikely to
rely on organizational initiatives for
AlexRaths/iStock/Thinkstock
their learning and development as
Members of the millenial generation tend to have
they are to rely on social security to
higher expectations and work a series of shortfund their retirement. In other words,
term jobs instead of staying in one place. This
millennials tend to take matters into
makes attracting and retaining them a challenge
their own hands and work at their own
for many organizations.
terms, making it difficult for any one
organization to attract them, let alone
retain them over time, without constantly negotiating most of the terms of employment
(Yost, 2011).
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Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit
Section 5.7
Global and Competitive Factors
Global staffing involves making recruiting and selection decisions for the purpose of hiring
individuals for assignments in other countries. Global recruiting is extremely challenging, and
the associated costs are usually very high. Accordingly, accurate selection decisions have to
be carefully considered and validated. Global recruiting also involves a variety of factors that
HR managers have to adapt and prepare for, such as different tax laws for different countries as well as various customs, cultures, and traditions. For instance, for a successful global
employee selection process to occur, HR managers must exert themselves to depict the lifestyle, work environment, culture, and habits to selected employees. Only then will employees
be able to deal with such issues as acceptable codes of ethics and moral and religious values
(Clegg & Gray, 2002).
To select the right candidate for a global assignment, HR managers must carefully examine
aspects such as cultural adjustment abilities, personality traits and characteristics, knowledge of global organizational requirements, communication skills, and other personal and
family requirements and considerations. Fortunately, despite the perceived high failure
rates of expatriate assignments of the past, recent studies show that these perceived trends
are in fact inaccurate (Harzing, 2002). Instead, research demonstrated that self-efficacy,
frequency of interaction with host nationals, interpersonal skills, family support, and discretion can facilitate expatriate adjustment. On the other hand, cultural novelty, role conflict, and ambiguity were shown to hinder adjustment. Expatriate adjustment is critical.
Well-adjusted expatriates have higher performance, are more satisfied, experience less job
strain, engage in more organizational citizenship, and are less likely to quit (Hechanova,
Beehr, & Christiansen, 2003).
Impact of Selection and Job Fit on Employee Motivation, Morale,
Productivity, and Retention
The last decade has witnessed a movement toward emphasizing employee talents and
strengths in selection, organizational fit, and job fit. Organizational and job fit can be influential factors for employees’ initial acceptance or rejection of job offers. However, what’s even
more critical is that these factors can also exert significant influence on work quality, motivation, and productivity after employees have been hired. For example, as discussed in Chapter 3,
Gallup’s employee engagement methodology considers two factors—the daily ability to do
what one does best at work and having a best friend in the workplace—as being critical for
having engaged employees. In turn, this engagement yields numerous desirable outcomes for
employees and organizations (Harter et al., 2002). These outcomes are particularly evident
after true and unbiased job expectations are clearly and precisely communicated to applicants during the recruiting process.
Individuals approach organizations with many needs, desires, and expectations. These individuals also come from a variety of backgrounds with different skills, experiences, capabilities, and personal perceptions. When these individuals are ultimately hired by organizations,
they expect to find a job environment that would not only fulfill and satisfy their basic needs
but also utilize, enhance, and promote their abilities and talents. In addition, significant job
involvement and the utilization of maximum talent potential in prominent activities allow
individuals to be recognized within the organization, which enhances their sense of selfactualization. Favorable HR practices can promote a concrete culture of trust and create a
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Section 5.7
Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit
long-term sense of commitment within the organization for qualified and skilled human
assets (Whitener, 2001).
Selection, Unions, and Labor Relations
Union activities directly affect HR practices. For example, unions can impose pressure on
management to give priority in job selection to union members rather than outside applicants when a position opens. Unions also influence the job selection process through negotiating shorter probationary periods and a quicker determination of employees’ suitability
for positions. These activities can sometimes result in premature and poor judgment of individuals, which may ultimately lead to inaccurate selection decisions and unsatisfactory job
performance. Other areas where unions influence HR decisions include testing, promotions,
layoffs, and merit-based systems. Organizations often seek favorable relations with unions,
but such relations can be challenging, as they can compromise the validity and reliability of
the selection process.
Eye on the Goal
Beyond Validity and Reliability: Utility Analysis
and Return on Investment in Selection
While effective selection can be expensive, the costs of selection mistakes can be even worse.
One of the recognized scientific approaches to quantifying the return on investment in effective selection is utility analysis, which uses statistical formulas to calculate these returns
over time. Utility analysis takes into consideration several aspects of the selection process;
for example, it accounts for the predictive capacity (validity) of one selection tool or process
versus another. Utility analysis can also account for the joint predictive capacities of multiple
selection devices, such as combining structured interviews and personality tests. Furthermore, utility analysis accounts for the importance of the job for the organization in terms of
the financial impact of more effective selection in that particular job. Some jobs may exhibit
higher variability in performance, warranting more accurate selection, while others may not
have as much variation across incumbents, limiting the scope of improvement in selection.
Utility analysis also accounts for factors such as labor demand and supply, which the organization may not be able to control. When the desired talent is in abundant supply, organizations
can afford to be more selective, which can increase the return on investment in more effective
selection procedures. On the other hand, the cost may outweigh the benefits when the organization intends to select the majority of applicants due to talent shortages.
As you probably know if you are familiar with accounting standards, the primary difference
between an investment and an expense is that returns on investments accrue over more than
one year. If effective selection is indeed an investment, its benefits should accrue beyond the
current year. Statistical methods such as utility analysis go beyond the costs of using various
selection devices, and even beyond the opportunity costs of effective selection (e.g., the redirection of managers’ time and energy away from other activities). These methods also take
into consideration time-sensitive factors such as employee flows, which in turn are affected
by the number of employees hired using one or more selection procedure, as well as these
employees’ retention and turnover rates (Cascio & Boudreau, 2011).
(continued)
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Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit
Section 5.7
Eye on the Goal
Beyond Validity and Reliability: Utility Analysis
and Return on Investment in Selection (continued )
Although calculating returns on investment is a complicated task, being able to quantify them
in effective selection and other HR practices is an important skill set for HR professionals. This
quantification can help them learn to speak the same language as the organization’s “C-Suite”
(senior management and decision makers at the strategic level) and its shareholders, whose
ultimate goal is to see the impact on the organizational bottom line. For example, when HR
professionals are able to show the dollar value added of adopting more valid and reliable selection procedures, these investments can be more readily compared with other more tangible
investments such as those in buildings, machinery, equipment, or technology. This calculation
increases the likelihood that valuable HR initiatives can get the resource allocations, funding,
and support they need, to truly make a difference in achieving strategic organizational goals.
Web Link
The Added Value of HR Initiatives
www.hrcosting.com
This free website allows HR professionals to quantify the benefits and costs of numerous HR
initiatives, including enhanced selection tools and procedures. Decision makers can use this
Web site to also conduct what-if analysis and compare alternative HR practices.
The HR Manager’s Bookshelf
Give and Take, by Adam Grant
http://www.amazon.com/Give-Take-Helping-Others-Success/dp/0143124986/ref=
sr_1_1?ie=UTF8&qid=1417412534&sr=8-1&keywords=give+and+take
In this book, Adam Grant (2014) introduces his revolutionary idea that contrary to conventional wisdom, givers, who give unconditionally and give more than they get, tend to experience more success than takers, who take more than they give, and only give to those from
whom they expect something back. Givers also tend to experience more success than matchers, who try to play it fair by balancing their giving and taking. Grant provides many clues
for detecting takers, which can be helpful in HR selection. He also discusses the social capital
implications of giving, taking, and matching, and uses them to explain the unexpected success
rate of givers.
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Summary & Resources
Best Companies to Work For
#12: Quicken Loans and #31: Intuit
http://fortune.com/best-companies/quicken-loans-12/
http://reviews.greatplacetowork.com/quicken-loans
http://fortune.com/best-companies/intuit-31/
http://reviews.greatplacetowork.com/intuit-inc
It is important to select employees who share the same organizational values and priorities.
Quicken Loans made this notion a priority. In an effort to reverse Michigan’s “brain drain,” it
relocated its headquarters to Detroit in 2010. It offers incentives for its employees to move
into the city and to get involved in volunteer activities to revitalize it. Of course, it takes a particular type of employee to desire such a lifestyle, and that is the type of employee that Quicken
looks for in the selection process.
Intuit has a similar emphasis on contributing to the community and encouraging employees
to volunteer and get involved. However, Intuit has a unique perspective on new employee
selection and retention. For example, it is known for allowing some of its new hires to spend
their first month adjusting to the organization and its culture, without any specific job assignments. While this may seem to be an expensive approach, it allows employees to evaluate their
person-organization fit early on so that there are no surprises or regrets.
Summary & Resources
Key Points
•
•
•
•
•
•
Selecting the right employees is one of the most crucial HR processes, but it is also
one of the most challenging decision-making processes in an organization. An effective selection process should help the organization choose, from a group, applicants
who fit certain jobs and also fit the organizational culture.
Organizations should use a combination of individual differences—human, social,
and psychological capital, and attitudes—as criteria for selection. These criteria
should be prioritized based on job requirements and organizational culture.
Common selection methods include resumes, application forms, tests, interviews,
reference checks, physical exams, and drug tests.
The quality of selection tools, methods, and procedures depends on their validity
and reliability. Validity is the extent to which a selection tool or procedure can accurately predict subsequent performance. Reliability is the extent to which a selection
tool, method, or procedure can produce consistent, replicable results over time and
across situations.
There are numerous laws and regulations governing HR practices, including selection. While employee selection methods attempt to differentiate candidates who
possess requisite job skills from those who do not, employers should not treat
applicants differently based on discriminatory factors such as gender, religion, race,
ethnicity, national origin, age, or disability.
Ensuring effective selection, organizational, and job fit can have a significant benefit
on employee motivation, morale, productivity, and retention. Selecting the right candidates is critical for creating human-based competitive advantage.
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Summary & Resources
Key Terms
Age Discrimination in Employment Act
(ADEA) A federal law that prohibits discrimination against employees over age 40.
aptitude How quickly or easily one will
learn in the future.
Big Five personality traits Five recognized
individual differences: conscientiousness,
extroversion, agreeableness, emotional
stability, and openness to experience.
construct validity The extent to which a
selection tool accurately reflects the abstract
personal attributes, or constructs, that a tool
intends to measure.
content-related validity The logical connection between the selection procedure
and the actual job.
core self-evaluations A composite of four
individual differences: self-esteem, generalized confidence, neuroticism, and locus of
control.
criterion-related validity The predictive,
empirical (number-based) link between a
predictor (such as a selection tool, method,
or procedure) and an actual measure of job
performance; or the statistical correlation
between applicants’ scores on the predictor and their subsequent job performance
scores.
disparate impact An illegal situation where
a policy or selection procedure that does not
explicitly discriminate against members of a
protected class has a discriminatory effect,
whether intended or unintended.
disparate treatment An illegal situation
in which an organization explicitly discriminates against an individual based on one of
the protected classes.
Employee Polygraph Protection Act A law
that limits the scope of lie detector use and
prohibits it as the sole determinant in hiring
and firing decisions.
Equal Employment Opportunities
Commission (EEOC) An entity that
enforces anti-discriminatory laws and
facilitates their application in organizations
through education and technical assistance.
Equal Pay Act A law that prohibits pay differentials for equal jobs across genders.
external validity The generalizability of a
selection tool or procedure.
face validity The subjective impression
of how relevant to a job various applicants,
organizations, or observers perceive a
predictor to be.
Family and Medical Leave Act (FMLA)
A law that requires an organization that
employs 50 or more workers to grant up
to 12 weeks of unpaid leave, for family
or medical reasons in any given one-year
period, to employees who have worked at
the organization for at least one year.
general mental abilities (GMA) Raw intelligence as measured by recognized intelligence quotient (IQ) tests.
hostile work environment A discriminatory and thus illegal form of harassment
where some organizational members create
an uncomfortable or offensive environment
for others, causing them undue hardships
and hindering their abilities to adequately
perform their jobs.
Immigration Reform and Control Act A
law that prohibits hiring illegal aliens.
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Summary & Resources
individual differences Personal traits
that tend to be stable over time and across
situations.
Patient Protection and Affordable Care
Act (PPACA) A law that increases the
responsibilities of employers, employees,
and insurance companies to expand coverage, accessibility, and affordability of healthcare benefits and progressively penalizes
them for failing to do so; also known as
Obamacare or the Affordable Care Act (ACA).
person-job fit The extent to which the
demands of the job are compatible with the
capabilities of the incumbent and to which
the needs or preferences of the incumbent
are met by the job.
person-organization fit The extent of the
resemblance between the personal core values and beliefs of individuals and the norms,
rules, regulations, and values of the organizations where they work.
positive psychological capital An individual’s positive psychological state of
development that is characterized by (1)
having confidence (self-efficacy) to take on
and put in the effort necessary to succeed
at challenging tasks; (2) attributing positive
reasons and causes (optimism) to succeeding now and in the future; (3) persevering
toward goals and, when necessary, redirecting paths to goals (hope) in order to succeed; and (4) when beset by problems and
adversity, sustaining and bouncing back and
even beyond (resiliency), to attain success.
Pregnancy Discrimination Act A law that
prohibits dismissal of an employee due to
pregnancy and ensures job security during
maternity leave.
psychological states Cognitive, affective,
and social capabilities that represent openness to growth, development, and change
over time and across situations.
quid pro quo Latin for “this for that”; a discriminatory and thus illegal form of harassment where the harassing member of the
organization requires the harassed member
to exchange sexual favors against his or her
will.
reliability The extent to which the results
from a predictor (such as a selection tool,
method, or procedure) can be replicated.
reverse discrimination An illegal practice
in which the majority group is discriminated
against in favor of a minority group.
social capital The value added through
interpersonal relationships, interactions,
and networking.
Title VII of the Civil Rights Act A law
that prohibits discrimination based on sex,
religion, race, ethnicity, or national origin
in hiring, promoting, firing, setting wages,
testing, training, apprenticeship, and other
terms and conditions of employment.
utility analysis A scientific approach to
quantifying the return on investment in
effective selection and other HR practices
using statistical formulas to calculate these
returns over time.
validity The extent to which a selection tool
or procedure can accurately predict subsequent performance.
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Summary & Resources
Critical Thinking Questions
1. Recent research on “Generation Y” suggests that for individuals of that generation, fit
with the group is more important than fit with the organization. Do you believe this
to be true? Why or why not?
2. If you have a selection method that is highly valid in predicting job performance but
also yields high disparate impact, although the organization may be able to legally
defend this method, should it continue to use it? Are there circumstances when it
would be more or less acceptable to use it?
3. Does “face validity” really matter? Why should an organization concern itself with
face validity (or not) if it doesn’t have to? Should an organization be willing to trade
off other types of validity to have face validity?
4. Despite being less valid in predicting job performance, both hiring managers and
applicants prefer unstructured interviews over structured interviews. Why do you
think this is the case?
5. A valid selection tool must be reliable, but a reliable selection tool isn’t necessarily
valid. Why is this the case?
6. Provide an example from your own experience or through additional research that
either supports or refutes Adam Grant’s theory about givers, takers, and matchers.
7. Recall an example from your own personal experience where the candidate that
appeared to be most qualified for a position in an organization where you work/
worked did not turn out to have the best person-job fit and/or person-organization
fit. What were some of the factors that were overlooked in the selection process?
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Week 2 Lecture
Week 2 will focus on employee selection methods, effective performance management,
and the role of a job description in the context of performance
management. Employees provide the working knowledge, talent, and skills that allow
an organization to operate; therefore, they are considered the most valuable assets of
an organization. This is why recruitment and performance management are an integral
part of human resource management and why organizations need good employees to
be successful. So how does an organization recruit and maintain the right
employees? There are various methods of recruitment in hiring an employee who is the
right fit. Maintaining employee satisfaction and motivation is another integral aspect of
HRM. Organizations need to stay competitive with other organizations in order to keep
those employees “happy” so that they do not look elsewhere for employment.
Ultimately, maintaining employees is the responsibility of the HR department and day to
day managers. Mangers must have the ability to manage employees effectively and not
micro-manage.
Recruitment
Employers need to strategically recruit employees, whether internal or external. The
employee recruitment process “translates environmental scans and labor market
analyses into specific actions to find and attract pools of candidates with the specific
competencies and skill sets that the organization needs” (Youssef-Morgan, 2015, ch.
4.1). Employers recruit qualified potential candidates through means such as
newspapers, internet job boards, referrals, employment agencies, and internal job
boards. Connecting employee recruitment to the organization’s specific HR strategic
process is critical to the success of the organization (Youssef-Morgan,
2015). Accordingly, day-to-day managers should be involved in the recruitment process
of employees as well as HR personnel for many reasons. Having both the manager
and the human resource manager involved in the recruitment process can help the
organization hire the best candidate, but also ensures the state and federal employment
laws are being following during the selection process. After a candidate has been hired,
the employer will continue to monitor the employee’s performance. Most companies
complete annual or bi-annual performance reviews.
Job Descriptions
According to Mravca (n.d.), job descriptions are the root of employee management and
have the power to promote positive employee engagement, as well as align employee
performance with organizational objectives. While many understand the need for job
descriptions, some do not fully see the impact it has on effective performance
management. A job description will include job tasks the represent the essential
functions that contribute to organizational success. Job descriptions should be explicit
and list required KSAs for effectively managing performance. Ultimately, the key to
effective performance management is directly tied to job descriptions. The five benefits
to linking job descriptions to performance reviews (Mravca, n.d.):
1.
2.
3.
4.
5.
Good for business
Great for employees
Logical
Transparent
Protection against fraudulent unemployment claims or lawsuits
References
Mravca, S. (n.d.). 5 benefits of linking job descriptions to performance reviews.
Retrieved from https://articles.bplans.com/5-benefits-linking-job-descriptionsperformance-reviews/
Youssef-Morgan, C. (2015). Human resource management (2nd ed.). San Diego,
CA: Bridgepoint Education, Inc.
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