Best Practices in Recruitment and

Selection
Shailendra Singh, Ph.D.
Indian Institute of Management
Lucknow

02/21/15

IIML Presentation

Staffing Organizations Model

Organization
Vision and Mission
Goals and Objectives

Organization
Organization Strategy
Strategy

HR
HR and
and Staffing
Staffing Strategy
Strategy

Staffing Policies and Programs

Support Activities
Core Staffing Activities
Legal compliance

Recruitment:

Planning

Selection:

Job analysis

Employment:

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External, internal

Measurement, external, internal

Decision making, final match
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Staffing System and Retention Management

The Hiring Process

Recruitment

Selection

Socialization
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Recruitment and Selection in

Indian Railways
Vacancies in Indian Railways are filled either by

recruitment by Recruitment agencies like UPSC or

RRB or by promotion from serving candidates.
Group A recruitments are filled by UPSC by All India
Competitive examinations.
Group B posts are normally filled by promotion from
serving Group C candidates.
Group C recruitments are made by Railway
Recruitment Boards.
Group D posts ( Those posts with GP 1800) are filled
by Railway Recruitment Cells

 All first appointments to a Group A Post in

Railway Service shall be made by the

President on the recommendation of the
Union Public Service Commission from time
to time in accordance with the rules framed
by him

Recruitment of Group 'A'

Officers
1. Competitive examination held by the Union Public

Service Commission (UPSC) Promotion of officers in

Group B.
2. Promotion of Officers from Group 'B' Service.
3. By appointment of candidates initially recruited as
Special Class Apprentices by U.P.S.C. for recruitment
to Indian Railway Service of Mechanical Engineers.
4. By transfer of an officer in service of the
Government.
5. By occasional admission of other qualified persons
in consultation with the U.P.S.C

(a) Civil Services Examination for

Indian Railway Traffic Service(IRTS)
Indian Railway Personnel Service (IRPS)
Indian Railway Accounts Service (IRAS)
Railway Protection Force
(b)Enginnering Services Examination for:
Indian Railway Service of Engineers (IRSE)
Indian Railway Service of Mechanical Engineers(IRSME)
Indian Railway Service of Electrical Engineers(IRSEE)
Indian Railway Service of Signal Engineers(IRSEE)
Indian Railway Stores Service (IRSS)
(c)Medical Services Examination for:
Indian Railway Medical Service(IRMS

Recruitment
Recruitment is the process of generating
a pool of qualified candidates for a
particular job. The firm must announce
the jobs availability to the market and
attract qualified candidates to apply. The
firm may seek applicants from inside the
organization, outside the organization, or
both.
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IIML Presentation

Recruitment Planning: Organizational Issues

In-house vs. external recruitment agency

Many companies do recruiting in-house

Recommended approach for large companies

Smaller companies may rely

on external recruitment agencies

Individual vs. cooperative recruitment alliances

Cooperative alliances involve arrangements to share

recruitment resources

Centralized vs. decentralized recruitment

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Open vs. Targeted Recruitment

Open recruitment
Targeted recruitment

Job requirements
matrix
Demographics
Geographic area
Recruitment sources

Former employees

Passive job seekers

The military

Special availabilities

Key shortages

Tradition
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Alternatives to Recruitment
Outsourcing
Contingent Workers
Professional Employer Organizations--

Employee Leasing
Overtime

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External Recruitment Methods

Advertising
Employment Agencies

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Private and Public

Recruiters
Special Events
Internships
Executive Search Firms

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External Recruitment Methods

(Continued)
Professional Associations
Employee Referrals
Unsolicited Walk-In Applicants
Open Houses
Event recruiting
Virtual Job Fairs
Sign-In Bonuses
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Selection
Selection is the process of making a
hire or no hire decision regarding
each applicant for a job. The process
typically involves determining the
characteristics required for effective job
performance and then measuring
applicants on those characteristics. The
characteristics required for effective job
performance are typically based on a job
analysis.
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Socialization
Socialization involves orienting new
employees in the organization and to the
units in which they will be working. It is
important that new employees become
familiar with the companys policies,
procedures, and performance
expectations. Socialization can make the
difference between a new workers
feeling like an outsider and feeling like a
member of the team.
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Logic of Prediction:
Past Performance Predicts Future Performance
Past Situations

New Situation (job)

HR Outcomes

Previous
Previousjob(s)
job(s)

Person

Current
Currentjob
job
Nonjob
Nonjob

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KSAOs
Motivation
Sample

Predict

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Attraction
Attraction
Performance
Performance
Satisfaction
Satisfaction
Retention
Retention
Attendance
Attendance

Sample Selection Sequence

Assessment Method

Applicant Flow Stage

Applicants
Applicants

Initial
Initial
Candidates
Candidates
Substantive
Substantive
Finalists
Finalists
Discretionary
Discretionary
Offer
Offer Receivers
Receivers
Contingent
Contingent
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New
New Hires
Hires

Quality of Measures
Reliability of measures
Validity of measures
Validity of measures in staffing
Validity generalization
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Quality of Measures:
Reliability
Measurement error

Actual score = true score + error

Deficiency error: Occurs when there is failure

to measure some aspect of attribute assessed

Contamination error: Represents occurrence

of unwanted or undesirable influence on the
measure and on individuals being measured

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Quality of Measures:
Reliability
Procedures to calculate reliability estimates
Coefficient alpha
Should be least .80 for a measure to have an
acceptable degree of reliability
Interrater agreement
Minimum level of interrater agreement - 75% or higher
Test-Retest reliability
Concerned with stability of measurement
Level of r should range between r = .50 to r = .90
Intrarater agreement
For short time intervals between measures, a fairly
high relationship is expected - r = .80 or 90%
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External Selection II Outline

Substantive Assessment Methods

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Personality Tests
Ability Tests
Job Knowledge Tests
Performance Tests and Work
Samples
Integrity Tests
Interest, Values, and
Preference Inventories
Structured Interview
Constructing a Structured
Interview
Assessment for Team and
Quality Environments
Clinical Assessments
Choice of Substantive Methods

Discretionary Assessment

Methods
Contingent Assessment

Methods
Collection of Assessment
Data
Legal Issues

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Overview of Personality Tests

Historical role of personality tests in selection e.g., MMPI

Validity .10--.15
Misuse: intended for identifying psychological disorders

Current role of personality tests e.g., role of Big Five

Describe behavioral, not emotional or cognitive traits

May capture up to 75% of an individuals personality
Big Five factors (Personality Characteristics Inventory etc.)
Conscientiousness: persistent, planner, can be counted on
Emotional stability: hard to annoy, hard to hurt feelings
Extraversion: likes meeting new people, takes charge
Openness to experience: likes new ideas, tries new things
Agreeableness: forgives easily, sees good side of people

Which of the Big 5 most likely to predict performance?

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Predictive Validity of Personality

Tests

Big Five factors

Conscientiousness (broadly promising)

Emotional stability (promising)

Valid across almost all occupational groups; r = .

31
Valid for many groups especially sales,
management, & teaching

Extraversion (some promise)

Most valid for salespeople

Openness to experience (virtually no predictive ability)

Agreeableness (virtually no predictive ability)
Limitations of using personality tests to predict?

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How Conscientiousness Predicts Job Performance

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Overview of Ability Tests

Definition -- Measures that assess an individuals capacity to function in a

certain way
Two types

Aptitude - Assess innate capacity to function

Achievement - Assess learned capacity to function

15--20% of organizations use ability tests in selection

Four classes of ability tests

Cognitive: perception, memory, reasoning, verbal, math,

expression
Psychomotor: thought/body movement coordination
Physical: strength, endurance, movement quality
Sensory/perceptual: detection & recognition of stimuli

Give an example where each ability might predict

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Evaluation of Cognitive Ability

Validity approaches
.50
Tests

Research findings

Among the most valid methods of selection

Often generalizes across organizations, job types,
and types of applicants
Can produce large economic gains for organizations
and provide major competitive advantage
Validity is particularly high for jobs of medium and
high complexity but also exists for simple jobs
A simple explanation for validity: those with higher
cognitive ability acquire and use greater knowledge

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Limitations of Cognitive
Ability Tests
Concern over adverse impact and fairness of tests
Cognitive ability tests are equally accurate predictors of job

performance for various racial & ethnic groups, but blacks

and Hispanics score lower than whites
Why might blacks & Hispanics score lower?
Is it OK to use cognitive ability tests if we monitor adverse
impact closely?
Is it OK to use differential prediction?
Applicants perceptions

Reactions to concrete vs. abstract test items

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Other Types of Ability Tests

Psychomotor ability tests

Valid predictors for jobs that require such abilities

with validity coefficients as high as .50

Physical abilities tests

Valid predictors for jobs that require such abilities

with validity coefficients as high as .40 to .80

Sensory/perceptual abilities tests

Valid predictors for jobs that require such abilities

with validity coefficients as high as .40 but may
not add to general cognitive ability prediction

Note: Increasingly, ability tests are being computer

administered

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Job Knowledge Tests

Two types

Assess knowledge of duties involved in a particular job

(i.e., test the knowledge level)
Level of experience with, and knowledge about, critical
job tasks and tools necessary to perform a job (i.e.,
test the amount of experience with the knowledge
areas)

Evaluation

Validity can be as much as .45

Higher validities found for complex jobs
Job knowledge measures add little to prediction
beyond that provided by cognitive ability tests but can
help filter out those clearly not qualified

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Performance Tests and Work

Samples
Definition -- Assess actual performance (e.g., fix a car, teach a class, type

a document)
Types of tests (should focus on relevant KSAOs)

Performance test vs. work sample (all or some)

Motor vs verbal work samples (action or thought)
High- vs. low-fidelity tests (level of realism)
Computer interaction performance tests vs. paper-and-pencil
tests including simulations (e.g., The Managers Workshop)
Situational judgment tests (combinations of above)

All the above can have good validity (.50+) & acceptance

Discuss potential limitations of each of the above

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Integrity Tests
Two types

Clear purpose / overt

General purpose / veiled purpose
Use of integrity tests in selection has grown dramatically during
past decade
Construct of integrity not well understood
Validity can be useful
Clear purpose as high as .55 predicting bad behaviors
General purpose as high as .32 predicting bad behaviors
Can predict performance as well (as high as .30)
Why would these predict general performance?
Discuss limitations of integrity tests

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Interest, Values, and Preference

Inventories
Assess activities individuals prefer to do on & off the job; do not

attempt to assess ability to do these

Not often used in selection
Can be useful for self-selection into job types
Types of tests

Strong Vocational Interest Blank (SVIB)

Myers-Briggs Type Inventory (MBTI)

Evaluation
Unlikely to predict job performance directly
May help assess person-organization fit & subsequent job
satisfaction, commitment & turnover

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Typical Unstructured
Interviews
Relatively unplanned and quick and dirty
Questions based on interviewer hunches or pet

questions to assess applicants

Casual, open-ended, or subjective questions
Often contains obtuse questions
Often contains highly speculative questions
Interviewer often unprepared
Validity typically very low (.20 at best)
Discuss sources of error in unstructured interviews
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Structured Interviews
Questions based on job analysis
Same questions asked of each candidate
Response to each question numerically evaluated
Detailed anchored rating scales used to score each

response
Detailed notes taken, focusing on interviewees behaviors
Validity may be .30 or better
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Structured Interviews (continued)

Situational - Assess applicants ability to

project his / her behaviors to future situations.

Assumes the persons goals/intentions will
predict future behavior (validity averages .35)
Experience-based - Assess past behaviors
that are linked to prospective job. Assumes
past performance will predict future
performance (validity averages .28)
Note: Individual interviews usually more valid
than panel interviews
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Clinical Assessments
Psychologist makes a judgment about suitability of a candidate for a

job
Typically used for selecting people for middle- and upper-level
management positions
Judgments based on
Interview
Personal history form
Ability test
Personality test
Feedback to company -- Narrative description of candidate, with or
without a recommendation
Can be valid but depends on the psychologist and his/her process
Discuss pros and cons of this approach

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Discretionary Assessment
Methods
Used to separate people who receive job offers

from list of finalists (assumes each finalist is considered fully qualified for
position)
Often very subjective, relying heavily on intuition
of decision maker
Factors other than KSAOs are evaluated

Assess person/organization match

Assess motivation level
Assess people on relevant organizational
citizenship behaviors

Should involve organizations staffing philosophy regarding EEO/AA

commitments
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Contingent Assessment
Methods
We offer you this job contingent upon .
Contingent methods not always used

Depends on nature of job and legal mandates

Might involve confirmation of

Degree

Valid license

Security clearance approval

Drug test results

Medical exam results

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Medical Exams
Identify potential health risks in job candidates
Must ensure medical exams are required only when a compelling

reason exists

Ensures people with disabilities unrelated to job performance are

not screened out
Use is strictly regulated by ADA to ensure disabilities not job related are
not screened out
Usually lack validity as procedures vary by doctor
Not always job related
Often emphasize short- rather than long-term health
New job-related medical standards are specific, job related, and valid

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Structured Interview
The structured interview is based
directly on a thorough job analysis.
It applies a series of job-related
questions with predetermined
answers consistently across all
interviews for a particular job.
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Examples of Structured
Interview Questions
Type

Example

Situational

Youre packing things into your car and getting

ready for your family vacation when it hits you
that you promised to meet a client this morning.
You didnt pencil the meeting into your calendar
and it slipped your mind until just now. What
do you do?

Job
Knowledge

What is the correct procedure for determining the

appropriate oven temperature when running a new
batch of steel?

Worker
Some periods are extremely busy in our business.
Requirements What are your feelings about working overtime?
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APPROACHES TO PERSONNEL
SELECTION: WHICH ARE MOST
PREDICTIVE?
RANKING

A. PERSONALITY
B. REFERENCES
C. INTERVIEWS
D. INTELLIGENCE TESTS
E. EDUCATION/GPA
F. WORK SAMPLE TESTS
G. ASSESSMENT CENTERS
H. PEER RATINGS
I. INTERESTS/VALUES
J. AGE
K. WORK HISTORY
L. TRAINING RATINGS
M. SELF-RATINGS
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APPROACHES TO PERSONNEL
SELECTION: WHICH ARE MOST
PREDICTIVE?

AVERAGE VALIDITY
.38 to .54
.38 to .54
.41 to .43
.41 to .43
.24 to .38
.15 to .36
.15 to .26
.14 to .26
.13 to .15
.10 to .15
.10 to .15
.10 to .15
.00 to .10

A. WORK SAMPLE TESTS

B. INTELLIGENCE TESTS
C. ASSESSMENT CENTERS
D. PEER RATINGS
E. WORK HISTORY
F. INTERVIEWS
G. PERSONALITY TESTS
H. REFERENCE CHECKS
I. TRAINING RATINGS
J. SELF RATINGS
K. EDUCATION/GPA
L. INTERESTS/VALUES
M. AGE
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Assessment Center: The Definition

An assessment center consists of a standardized

evaluation of behavior based on multiple inputs.

Multiple trained observers and techniques are used.
Judgments about behaviors are made, in major part,

from specifically developed assessment simulations.

These judgments are pooled in a meeting among

the assessors or by a statistical integration process .

Source: IPMAAC Conference on Public Personnel Assessment

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What is an Assessment Center?

Used as a method of selection
Put candidate in a realistic work situation in

order to predict their performance in an actual

work setting
Involves simulation
Usually

takes between 2-4 days

Helps to show real job performance

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Essential Features of an Assessment

Center
Job analysis of relevant behaviors
Measurement techniques selected based on job analysis
Multiple measurement techniques used, including

simulation exercises

Assessors behavioral observations classified into

meaningful and relevant categories (dimensions, KSAOs)

Multiple observations made for each dimension

Multiple assessors used
for each candidate
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Essential Features of an Assessment

Center

Assessors trained to a performance standard

Systematic methods of recording behavior

Assessors prepare behavior reports in preparation for

integration

Integration of behaviors through:

Pooling of information from assessors and

techniques; consensus discussion

Statistical integration process

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What is not an Assessment Center

Multiple-interview processes (panel or sequential)

Paper-and-pencil test batteries; regardless of how scores are

integrated

Individual clinical assessments

Single work sample tests

Multiple measurement techniques without data integration

Labeling a building the Assessment Center

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Why do they Work?

Standardized situation for all candidates

Makes it legally defensible

Shows how the candidate responds to

situations and works through them

Measure job related factors (KSAOs)
Rely on observed behavior

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Why are they Accepted as a

Useful Tool?
Managers

Rational approach
Well organized

Candidates

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Believe they fairly and consistently test all

applicants

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What is the Relative Cost of Using

an Assessment Centers?
More costly per candidate than

other selection methods

Involve the use of trained

assessors

However, they have greater

validity than other methods

This is proven
Leads to less turnover costs,
rehiring, etc.

Provide strong ROI

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AT&T Management Progress Study

Assessment Techniques

Interview
In-basket exercise
Business game
Leaderless group discussion (assigned role)
Projective tests (TAT)
Paper and pencil tests (cognitive and personality)
Personal history questionnaire
Autobiographical sketch

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AT&T Management Progress

Study
Evaluation
ofafter
Participants
Written
reports/ratings
each exercise or test
Multiple observers for LGD and business game
Specialization of assessors by technique
Peer ratings and rankings after group exercises
Extensive consideration of each candidate

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Presentation and discussion of all data

Independent ratings on each of the 25 characteristics
Discussion, with opportunity for rating adjustments
Rating profile of average scores
Two overall ratings: would and/or should make middle
management within 10 years
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Common Uses of Assessment

Centers

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Selection and Promotion

Supervisors & managers

Self-directed team
members

Sales
Diagnosis

Training & Development

needs

Placement
Development

Skill enhancement
through simulations

Assessor Tasks
Observe participant behavior in simulation exercises
Record observed behavior on prepared forms
Classify observed behaviors into appropriate

dimensions
Rate dimensions based upon behavioral evidence
Share ratings and behavioral evidence in the
consensus meeting

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Behavior!

What a person actually says or does

Observable and verifiable by others
Behavior is not:

Judgmental conclusions
Feelings, opinions, or inferences
Vague generalizations
Statements of future actions
A statement is not behavioral if one has to ask How did he/she
do that?"," How do you know?, or What specifically did he/she
say? in order to understand what actually took place

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Why focus on behavior?

Assessors rely on each others observations to develop final

evaluations
Assessors must give clear descriptions of participants actions
Avoids judgmental statements
Avoids misinterpretation
Answers questions:

How did participant do that?

Why do you say that?

What evidence do you have to support that conclusion?

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Dimension

Definition: A category of behavior associated with success or

failure in a job, under which specific examples of behavior can
be logically grouped and reliably classified

identified through job analysis

level of specificity must fit assessment purpose

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A Typical Dimension

Planning and Organizing:

Efficiently establishing a course of action

for oneself and/or others
in order to
efficiently accomplish a specific goal.
Properly assigning routine work and
making appropriate use of resources.

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A Typical Dimension

Correctly sets priorities

Coordinates the work of all involved parties

Plans work in a logical and orderly manner

Organizes and plans own actions and those of others

Properly assigns routine work to subordinates

Plans follow-up of routinely assigned items

Sets specific dates for meetings, replies, actions, etc.

Requests to be kept informed

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Uses calendar, develops to-do lists or tickler files in order to

accomplish goals
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Sample scale for rating

dimensions
5: Much more than acceptable: Significantly above

criteria required for successful job performance

4: More than acceptable: Generally exceeds criteria
relative to quality and quantity of behavior required
for successful job performance
3: Acceptable: Meets criteria relative to quality and
quantity of behavior required for successful job
performance
2: Less than acceptable: Generally does not meet
criteria relative to quality and quantity of behavior
required for successful job performance
1: Much less than acceptable: Significantly below
criteria required for successful job performance

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Types of simulation exercises

In-basket
Analysis
Fact-finding
Interaction

Oral presentation
Leaderless group discussion

Subordinate
Peer
Customer

Assigned roles or not

Competitive vs. Cooperative

Scheduling
Sales call
Production exercise

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Advantages of Assessment
Centers
Successfully predict a variety of important

outcomes

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Job Performance
Management Potential
Training Performance
Career Development

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Assessment Centers Vs. Development

Centers

assign the role of judge to

assessors
place emphasis on selection
with little or no developmental
feedback and follow up
give feedback at a later date
involve the organisation having
control over the information
obtained
have very little pre-centre
briefing
tend to be used with external
candidates
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assign the role of facilitator to

assessors
place emphasis on
developmental feedback and
follow up with little or no
selection function
give feedback immediately
involve the individual having
control over the information
obtained
have a substantial pre-centre
briefing
tend to be used with internal
candidates

Choice of Assessment Method

Validity coefficient
Correlation with other predictors
Adverse impact
Utility
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Validity Coefficient
Practical significance
Extent to which predictor adds value to prediction of
job success
Assessed by examining
Sign
Magnitude
Validities above .15 are of moderate usefulness
Validities above .30 are of high usefulness

Statistical significance
Assessed by probability or p values
Reasonable level of significance is p < .05
Face validity
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Adverse Impact
Role of predictor
Discriminates between people in terms of the
likelihood of their job success
When it discriminates by screening out a
disproportionate number of minorities and women,
Adverse impact exists which may result in legal
problems
Issues

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What if one predictor has high validity and high

adverse impact?
And another predictor has low validity and low adverse
impact?
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Utility
Definition

Expected gains derived from using a predictor

Two types

Hiring success gain

Selection ratio: Number hired / number of applicants
Base rate: Number of successful employees / number
of employees

Economic gain

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Determining Assessment Scores

Single predictor
Multiple predictors - 3 approaches
Compensatory model
Clinical prediction

Unit weighting
Rational weighting
Multiple regression
Choosing among weighting schemes

Multiple hurdles model

Combined model Combined Model for
Recruitment Manager

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Relevant Factors: Selecting

the Best Weighting Scheme
Do decision makers have considerable

experience and insight into selection decisions?

Is managerial acceptance of the selection
process important?
Is there reason to believe each predictor
contributes relatively equally to job success?
Are there adequate resources to use involved
weighting schemes?
Are conditions under which multiple regression is
superior satisfied?

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Combined Model
for Recruitment Manager

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Hiring Standards and Cut

Scores
Issue -- What is a passing score?

Score may be a

Single score from a single predictor or

Total score from multiple predictors

Description of process

Cut score - Separates applicants who advance

from those who are rejected

Consequences of cut scores

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Consequences of Cut Scores

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Consequences of Cut Scores

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Hiring Standards and Cut Scores

(continued)
Methods to determine cut scores

Use of Cut Scores in Selection Decisions

Minimum competency

Top-down

Banding

Professional guidelines

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Professional Guidelines for Setting

Cutoff Scores
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Exh. 11.7: Use of Cut

Scores in Selection Decisions

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Methods of Final Choice

Random selection

Each finalist has equal chance of being selected

Ranking

Finalists are ordered from most to least desirable

based on results of discretionary assessments

Grouping

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Finalists are banded together into rank-ordered

categories

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Exh. 11.9: Methods of Final

Choice

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Decision Makers
Role of human resource professionals

Determine process used to design and manage selection

system
Contribute to outcomes based on initial assessment
methods
Provide input regarding who receives job offers
Role of managers
Determine who is selected for employment
Provide input regarding process issues
Role of employees
Provide input regarding selection procedures
and who gets hired, especially in team approaches

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Employment Contracts
Requirements for enforceable contract
Parties to contract
Form of contract
Disclaimers
Contingencies
Reneging
Other employment contract sources
Unfulfilled promises
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Employment Contracts
Requirements for enforceable contract

Offer

Acceptance

Consideration

t
n
e
m
y
o
t
l
c
p
a
Em ontr
c

Parties to contract

Employee or independent contractor

Third parties

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Employment Contracts
(continued)
Form of contract
Written contract
Suggestions
Oral contract
One-year rule
Parole evidence
Suggestions
Disclaimers

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Oral or written statement explicitly limiting an employee

right and reserving that right for employer
Recommendations for enforcement
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Employment Contracts
(continued)
Contingencies

Extending a job offer contingent on certain conditions being

fulfilled by offer receiver

Reneging

Employment-at-will

Doctrine of promissory estoppel

Other employment contract sources

Employee handbooks

Oral statements made by employer representatives

02/21/15

IIML Presentation

02/21/15

IIML Presentation