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Recruiting and

Selecting
Employees
The Recruitment and Selection
Process
1. Decide what positions to fill through personnel planning and forecasting.
2. Build a candidate pool by recruiting internal or external candidates.
3. Have candidates complete application forms and undergo initial screening interviews.
4. Use selection tools to identify viable candidates.
5. Decide who to make an offer to, by having the supervisor and others interview the
candidates.
Forecasting Personnel Needs
Forecasting Tools

Trend analysis Ratio analysis Scatter plotting

Trend analysis can provide an initial estimate of future staffing needs, but
employment levels rarely depend just on the passage of time. Other factors (like
changes in sales volume and productivity) also affect staffing needs.
Ratio analysis provides forecasts based on the historical ratio between (1) some
causal factor (like sales volume) and (2) the number of employees required (such
as number of salespeople).
scatter plot shows graphically how two variables—such as sales and your firm’s
staffing levels—are related. If they are, and then if you can forecast the business
activity (like sales), you should also be able to estimate your personnel needs.
Determining the Relationship Between
Hospital Size and Number of Nurses

Hospital Size Number of


(Number Registered
of Beds) Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

Note: After fitting the line,


you can project how many
employees are needed,
given your projected volume.
Employee Recruitment

Generating
a pool
of qualified
candidates
for a job.
Hire Internally
• know them, they you
• cost / training
• peer to boss move
• fresh perspective

Hire Externally
• fresh perspective
• training time
• resentment from inside
Outside Sources of Candidates
Locating Outside Candidates

1 Recruiting via the Internet

4 On Demand Recruiting
2 Advertising
Services (ODRS)

3 Employment Agencies 5 College Recruiting

6 Referrals and Walk-ins


Recruiting Yield Pyramid


50% ● ●

67% ● ● ●

75% ● ● ● ●

16% ● ● ● ● ● ●
Recruiting via the Internet
• Advantages
• Cost-effective way to publicize job openings
• More applicants attracted over a longer period
• Immediate applicant responses
• Online prescreening of applicants
• Links to other job search sites
• Automation of applicant tracking and evaluation

• Disadvantages
• Exclusion of older and minority workers
• Unqualified applicants overload the system
• Personal information privacy concerns of applicants
College Recruiting
• On-campus recruiting goals • On-site visits
• To determine if the candidate is • Invitation letters
worthy of further consideration • Assigned hosts
• To attract good candidates • Information packages
• Planned interviews
• Timely employment offer
• Follow-up
• Internships
Employee Referrals and Walk-ins
• Employee Referrals
• Referring employees become stakeholders.
• Referral is less time consuming.
• Relying on referrals may be discriminatory.
• Walk-ins
• Seek employment through a personal direct approach to the
employer.
• Courteous treatment of any applicant is a good business practice.
Recruitment Research Findings: Practical Applications for Managers

Recruitment Research Finding Practical Applications for Managers


The recruitment source affects the characteristics Use sources such as referrals from current
of applicants you attract. employees that yield applicants more likely to be
better performers.
Recruitment materials have a more positive Provide applicants with information on aspects
impact if they contain more specific information. of the job that are important to them, such as
salary, location, and diversity.
Organizational image influences applicants’ initial Ensure all communications regarding an
reactions. organization provide a positive message
regarding the attractiveness of the organization
as a place to work.
Applicants with a greater number of job Ensure initial recruitment activities (e.g., Web
opportunities are more attentive to early site, brochure, on-campus recruiting) are
recruitment activities. attractive to candidates.
Realistic job previews that highlight both the Provide applicants with a realistic picture of the
advantages and the disadvantages of the job job and organization, not just the positives.
reduce subsequent turnover.
Applicants will infer (perhaps erroneous) Provide clear, specific, and complete information
information about the job and company if the in recruitment materials so that applicants do not
information is not clearly provided by the make erroneous inferences about the job or the
company. employer.
Recruiter warmth has a large and positive effect Choose individuals who have contact with
on applicants’ decisions to accept a job. applicants for their interpersonal skills.
Employee Selection
Selection is the process of making a
“hire” or “no hire” decision regarding
each applicant for a job.
Importance of Selection Process
Despite its importance, however, hiring people remains one of the
least well practiced arts of management. One executive recruiter,
for instance, reports:
Executives make up their minds about whether they like a
candidate in the first 20 seconds and spend the next half-hour
justifying their decision. It’s called the “halo effect.” Once you
have formed an opinion, you only see what you want to see.
Another headhunter says:
I can spend endless hours screening candidates and culling
resumes that fit the criteria I have painstakingly developed with a
client. And managers will still hire the person with the right
“chemistry,” even if they don’t fit the criteria at all. They fall in
love with a candidate and that’s it.
Employee Selection

The careful selection requires:

• fleshing out the requirements for the position as accurately and


completely as possible; and,
• Assessing the candidate’s fit with these requirements.

The objective of the hiring process is to find a person whose skills,


abilities, and personal characteristics suit the job. It is a question of
fit between the individual and the requirements of the position.
Employee Selection

There are two sets of factors that can be used to analyze the
requirements of a position and then determine the degree of fit
between an individual and the position:

1. Background factors, which include education and experience.

2. Personal factors, which include intellectual ability, personality,


and motivation, and which often translate into a management
“style.”
Employee Selection
Selection Tools

• Letter of recommendation
• Application forms
• Ability tests
• Personality tests
• Psychological tests
• Interviews
• Assessment Centers
Selection Tools: Interviews
The Topic Opener: This is a broad question that forces the candidate to organize
and prioritize a lot of information and construct an argument. For instance, “Tell
me about your current job?” would be a good topic opener.

The Self-appraisal Question: These questions ask the candidate to get behind
specific information offered in their answer to the topic opener, and to explain
their own views and opinions. Thus, a candidate who responded to the above
topic opener with a detailed description of a leadership role with a project team
that had successfully recast the business planning process could be asked, “What
was it about your leadership style that allowed you to achieve this?” These
questions force candidates to present a sense of their personal qualities.

Situation-based Questions: These questions are the most specific and typically
occur near the end of the topic being explored. They put candidates in specific
situations where they are asked to describe how they might behave in certain
situations, and how they view themselves relative to specific tasks, situations,
and decisions that are representative of those encountered in the position.
Selection Tools: Interviews
Developing a Hiring
System
Summary of Performance-Based
Hiring
• Understand performance expectations
• List attributes that predict performance
• Match attributes with selection tools
• Choose/develop each tool effectively
• Make performance-based decisions
List of Critical Attributes

Attribute Importance Rationale

Customer Service 4.7 Ability to assess customers’ needs


Orientation and resolve complaints
Attention to detail 4.5 Errors in order entry cause delays
and complaints
Conscientiousness 4.5 Dependable performance and
consistently positive interactions with
customers
Computer Skill 4.0 Required for data entry; no time to
train
Product knowledge 4.0 To be able to describe products to
customer
Performance Attributes Matrix
App. Reference Work Knowledge Personality
Attribute Blank Interview Checks Sample Test Inventory
Customer X X X X
Service
Attention to X X X
detail
Conscienti X X X
ousness
Computer X X X
Skill
Product X X X X
knowledge
Who Do You Hire??
Reference Knowledge Personality
Name Interview Checks Work Sample Test Inventory

Lee Excellent OK Good 90% Hire

Maria Excellent Glowing Very Good 85% Hire

Alan Good ??? Excellent 90% Caution

Juan Marginal OK Good 81% Hire

Frank Excellent Glowing Poor 70% Hire

Tamika Good OK Good 75% Hire


Common Decision-Making
Errors
• Switching to non-performance factors
• Succumbing to the “Tyranny of the Best”
• Reverting to “intuition” or “gut feel”
Combining Information to Make Good
Decisions
• “Mechanical” methods are superior to “Judgment”
approaches
• Compensatory Approach
• Multiple Cutoff
• Multiple Hurdle
• Profile Matching
• High-Impact Hiring approach
Compensatory Approach
• Predicted Job perf = a + b1x1 + b2x2 + b3x3
• x = predictors; b = optimal weight
• Issues:
• Compensatory: assumes high scores on one predictor
compensate for low scores on another
• Assumes linear relationship between predictor scores and job
performance (i.e., “more is better”)
Multiple Cutoff Approach
• Sets minimum scores on each predictor
• Issues
• Assumes non-linear relationship between predictors and job
performance
• Assumes predictors are non-compensatory
• How do you set the cutoff scores?
How Do You Set Cut Scores?
• Expert Judgment

• Average scores of current employees


• Good employees for profile matching
• Minimally satisfactory for cutoff models
Multiple Cutoff Approach
• Sets minimum scores on each predictor
• Issues
• Assumes non-linear relationship between predictors and job
performance
• Assumes predictors are non-compensatory
• How do you set the cutoff scores?
• If applicant fails first cutoff, why continue?
Multiple Hurdle Model
Finalist
Decision

Pass Pass Pass Pass


Test 1 Test 2 Interview Background

Fail Fail Fail Fail

Reject
Multiple Hurdle Model
• Multiple Cutoff, but with sequential use of predictors
• If applicant passes first hurdle, moves on to the next
• May reduce costs, but also increases time
Profile Matching Approach
• Emphasizes “ideal” level of KSA
• e.g., too little attention to detail may produce sloppy work; too
much may represent compulsiveness
• Issues
• Non-compensatory
• Small errors in profile can add up to big mistake in overall score
• Little evidence that it works better
Profile Match Exam ple

4.5

3.5

2.5
Ideal

1.5

0.5

0
Detail Experience C. Service Sales Apt
Profile Match Exam ple

Ideal
John
3
Sam
Sue

0
Detail Experience C. Service Sales Apt
How Do You Compare
Finalists?
• Compensatory approach
• Y (predicted performance) score based on formula
• Cutoff/Hurdle approach
• Eliminate those with scores below cutoffs
• Then use regression (or other formula) approach
• Profile Matching
• Smallest difference score is best
• ∑ (Ideal-Applicant) across all attributes
• In any case, each finalist has an overall score