Chapter 6 Selecting Applicants

1. Chapter 6Selecting Applicants

2. Chapter Outline • 6-1 Gaining Competitive Advantage • 6-2 HRM Issues and Practices • 6-3 The Manager’s Guide

3. 6-1a Opening Case: Gaining Competitive Advantage at Southwest Airlines (SWA) • Problem: Selecting the best employees from thousands of applicants. • Solution: Implementing targeted selection. • How the use of targeted selection enhanced competitive advantage • SWA has been quite successful in achieving a competitive advantage, due, in part, to its selection practices.

4. 6-1b Linking Selection Practices to Competitive Advantage • The effectiveness of a firm’s selection practices can impact an organization’s competitive advantage in a number of ways: • Improving productivity. • Achieving legal compliance. • Reducing training costs.

5. 6-2a Technical Standards for Selection Practices • Validity, the technical term for effectiveness, refers to the appropriateness, meaningfulness, and usefulness of selection inferences. • The closer the actual job performances match the expected performances, the greater the validity of the selection process. • Manager must have a clear notion of the needed job qualifications, and must use selection methods that reliably and accurately measure these qualifications.

6. 6-2a Technical Standards for Selection Practices (cont.) • Determining job qualifications • Job qualifications refer to the personal qualities an employer seeks when filling a position. • Some qualifications, such as technical KSAs and nontechnical skills are job-specific; other qualifications are universal. • By basing qualifications on job analysis information, a company ensures that the qualities being assessed are important for the job. • Job analyses are also needed for legal reasons.

7. 6-2a Technical Standards for Selection Practices (cont.) • Choosing selection methods • The choice of selection methods should reliably and accurately measure the needed qualifications. • Reliability is the degree of self-consistency among the scores earned by an individual. • Reliable evaluations are consistent across both people and time.

9. 6-2a Technical Standards for Selection Practices (cont.) • The firm’s assessments should accurately measure the needed worker requirements. • A particularly effective approach or model to follow when making this decision is known as the behavior consistency model. • The model specifies that the best predictor of future job behavior is past behavior performed under similar circumstances.

10. 6-2a Technical Standards for Selection Practices (cont.) • To implement the behavior consistency model, employers should follow this process: • Thoroughly assess each applicant’s previous work experience to determine if the candidate has exhibited relevant behaviors in the past. • If such behaviors are found, the manager should evaluate the applicant’s past success on each behavior based on carefully developed rating scales. • If such behaviors are not found, estimate the future likelihood of these behaviors by administering various types of assessments.

11. 6-2a Technical Standards for Selection Practices (cont.) • Assessing and documenting validity • Content-oriented strategy: Demonstrate that it followed “proper” procedures in the development and use of its selection devices. • Criterion-related strategy: Provide statistical evidence showing a relationship between applicant selection scores and subsequent job performance levels. • Validity generalization strategy: Demonstrate that other companies have already demonstrated the validity of the selection instruments.

12. 6-2a Technical Standards for Selection Practices (cont.) • Content-oriented strategy • Evidence would show that the selection devices were properly designed and were accurate measures of the needed worker requirements. • The employer must demonstrate that: • The selection devices were chosen on the basis of an acceptable job analysis. • They measured a representative sample of the KSAs identified.

13. 6-2a Technical Standards for Selection Practices (cont.) • Criterion-related strategy • Attempts to demonstrate statistically that someone who does well on a selection instrument is more likely to be a good job performer than someone who does poorly. • To gather criterion-related evidence, two pieces of information are required : a predictor score and a criterion score.

14. 6-2a Technical Standards for Selection Practices (cont.) • Criterion-related strategy • Predictor scores: Represent how well the individual fared during the selection process. • Criterion scores: Represent the job performance level achieved by the individual, usually based on supervisor evaluations. • Validity coefficient: An index of criterion-related validity reflecting the correlation between selection and criterion scores; should be at least r = .3.

15. 6-2a Technical Standards for Selection Practices (cont.) • A criterion-related validation study may be conducted in one of two ways: • Predictive validation study: Information is gathered on actual job applicants. • Concurrent validation study: • Information is gathered on current employees. • More commonly used as they can be conducted more quickly.

16. 6-2a Technical Standards for Selection Practices (cont.) • Validity generalization strategy • Established by demonstrating that a selection device has been consistently found to be valid in many other similar settings. • Organization must present the following data: • Studies summarizing a selection measure’s validity for similar jobs in other settings. • Similarity between jobs for which the validity evidence is reported and the job in the new employment setting. • Similarity between the selection measures in the other studies composing the validity evidence, and those measures to be used in the new employment setting.

17. 6-2b Legal Constraints on Employee Selection • Equal Employment Opportunity Commission (EEOC) guidelines on employment discrimination • The Uniform Guidelines • National Origin Discrimination Guidelines • Sexual Harassment Guidelines • Pregnancy Discrimination Guidelines • Age Discrimination Guidelines • Religious Discrimination Guidelines • Disability Discrimination Guidelines

18. 6-2b Legal Constraints on Employee Selection (cont.) • The Uniform Guidelines • Issued in 1978. • Apply to nearly all organizations employing 15 or more employees. • Designed to assist organizations in understanding the compliance requirements imposed by Title VII of the Civil Rights Act, primarily with regard to disparate impact claims.

19. 6-2b Legal Constraints on Employee Selection (cont.) • National Origin Discrimination Guidelines • Individuals rejected for employment have just cause for legal redress if their rejection was based on any of the following factors: • Place of origin • Ancestor’s place of origin • Marriage to a person of a foreign origin • Membership in an association seeking to promote the interests of a national origin group

20. 6-2b Legal Constraints on Employee Selection (cont.) • Sexual Harassment Guidelines: The employer is liable for unlawful sex discrimination if: • An employment opportunity is granted because of a candidate’s submission to an employer’s request for sexual favors. • An employment opportunity is withheld because of the candidate’s refusal to grant such favors.

21. 6-2b Legal Constraints on Employee Selection (cont.) • Pregnancy Discrimination Guidelines • A female applicant who is temporarily unable to perform some job function due to her pregnancy-related condition must be treated in the same manner as any other applicant with a temporary disability. • The preferences of coworkers, clients, or customers would not serve as a legitimate, nondiscriminatory reason for rejecting such a candidate.

22. 6-2b Legal Constraints on Employee Selection (cont.) • Age Discrimination Guidelines • Prohibits disparate treatment directed towards applicants aged 40 and above. • If charged with age-based disparate treatment, a firm must demonstrate that: • The hiring decision was not based on age, but on some “reasonable factor other than age,” such as lack of skill. • Age is a BFOQ (bona fide occupational qualification) for the position. • It is a business necessity.

23. 6-2b Legal Constraints on Employee Selection (cont.) • Religious Discrimination Guidelines • Requires employers to accommodate a reasonable request for religious accommodation, as long as the accommodation does not pose an undue hardship on their business operations. • When judging a claim of undue hardship, the courts apply a standard called the “de minimis principle.” • The principle states that to be declared an undue hardship, the cost of accommodation must be more than minimal.

24. 6-2b Legal Constraints on Employee Selection (cont.) • Disability Discrimination Guidelines • The act defines ‘‘disability’’ as a physical or mental impairment that substantially limits one or more of an individual’s major life activities. • A summary of the ADA guidelines give a detailed account of what an organization may (or must) do and what it may not do when it considers employing a disabled applicant.

25. 6-2b Legal Constraints on Employee Selection (cont.) • Constitutional constraints on selection – Fourth Amendment to the U.S. Constitution • Pertains to an individual’s privacy rights. • Is the basis for workplace-related lawsuits dealing with the use of certain physiological screening devices. • Imposes constraints on the type of information that employers may lawfully collect about an applicant.

26. 6-2b Legal Constraints on Employee Selection (cont.) • Constitutional constraints on selection – Fifth and Fourteenth Amendments to the U.S. Constitution • Provides citizens with equal protection under the law. • Fifth Amendment applies to federal employees, while the Fourteenth Amendment applies to state employees.

27. 6-2b Legal Constraints on Employee Selection (cont.) • Tort law constraints on selection • Refers to civil laws designed to discourage individuals from subjecting others to unreasonable risks and to compensate those who have been injured by unreasonably risky behavior. • Two areas that bear the most influence on employee selection are negligent hiring and defamation. • Defamation • The unprivileged publication of a false oral or written statement that harms the reputation of another person. • Claims often arise when giving reference information.

28. 6-2b Legal Constraints on Employee Selection (cont.) • Negligent hiring • Refers to situations in which employers hire an applicant who is somehow unfit for the job, and because of this unfitness, commits an act that causes harm to another. • An individual would be considered unfit in a negligent hiring case if he or she: • Lacked the necessary training and experience. • Had a physical or mental infirmity. • Was frequently intoxicated. • Experienced constant forgetfulness. • Liked to engage in horseplay or was reckless or malicious.

29. 6-2c Selection Methods • Application blanks • Biodata inventories • Background investigations • Reference checks • Employment interviews • Employment tests • Assessment centers • Screening for dysfunctional behavior

30. 6-2c Selection Methods (cont.) • Application blanks – Purpose • To determine whether candidates meet the minimum qualifications for the job. • Help employers judge the presence (or absence) of certain job-related attributes. • Used to “red flag” any potential problem areas concerning the applicant.

31. Figure 6-2 Examples of Potentially Unlawful Questions

32. 6-2c Selection Methods (cont.) • Biodata inventories • Responses are objectively evaluated. • The two types of biodata inventories are weighted application blanks and biographical information blanks. • Weighted application blank: A biodata inventory containing the same questions as an application blank. • Biographical information blank: A biodata inventory consisting of a set of questions designed to cover a broad array of background information.

33. 6-2c Selection Methods (cont.) • Biodata inventories (cont.) • Used as a prescreening device to predict tenure. • Excellent predictors of job success. • Few companies use this method. • Have some legal concerns that may be justified.

34. 6-2c Selection Methods (cont.) • Background investigations • Serve two purposes – Screen applicants for: • Positions of trust in occupations such as law enforcement, private security, and nuclear power. • “Special duty of care” positions in order to satisfy requirements imposed by negligent hiring law. • Employers must avoid violating the legal rights of applicants; the primary law being Fair Credit Reporting Act. • This law is designed to protect applicants’ rights in the event of a background investigation conducted by an investigative agency.

35. 6-2c Selection Methods (cont.) • Reference checks • Involve collecting information from applicants’ previous employers. • Provide another potentially useful means of assessment. • Serve two important purposes: • Verify information provided by applicants to ensure that they have not fabricated their qualifications or work history. • Provide additional information about applicants, which may be predictive of job performance.

37. 6-2c Selection Methods (cont.) • Employment Interviews • Provide an opportunity for applicants to describe their previous work experience, educational history, career interests, and likes and dislikes among others. • Four types of valuable information sought during an interview: • Technical knowledge • Self-evaluative information • Situational information • Behavior description information • Raise the same legal concerns as application blanks.

38. 6-2c Selection Methods (cont.) • Employment tests – Mental ability tests • Designed to measure intelligence or aptitude. • Used primarily for assessing entry-level applicants for jobs that do not require specific job-related skills. • Determine whether applicants have the capacity to learn job skills successfully. • Often have a disparate impact on certain protected groups; some employers are thus reluctant to use mental ability tests.

39. Figure 6-3 The “Big Five” Personality Types

40. 6-2c Selection Methods (cont.) • Employment tests – Personality tests • Provide a more objective way to gauge personality. • The validity of a personality test is situation specific; a well-designed test can be a valid predictor of job performance for some jobs, but not for others. • There are few legal problem associated with their use.

41. 6-2c Selection Methods (cont.) • Employment tests – Work sample tests • Require applicants to perform some of the actual (or simulated) duties of the vacant position. • Used to assess manual skills, clerical skills, and managerial skills. • The tests are quite valid, if properly constructed and implemented, as they provide direct measures of job performance. • Are quite expensive. • Could have possible safety problems.

42. 6-2c Selection Methods (cont.) • Developing work sample tests • Conduct a job analysis to identify the important tasks of the position. • Choose a representative sample of tasks to be included on the test. • Develop a scoring procedure for assessing how effectively an applicant performs each task. • Administer the test to applicants under standardized conditions.

43. 6-2c Selection Methods (cont.) • Assessment centers • A selection technique that consists of work samples and other assessment techniques. • Is primarily used to select managers. • Work sample tests are often administered as part of an assessment center. • The most commonly used work sample tests are: • Leaderless group discussion • Management games • In-basket • Have been found to be quite valid when appropriately developed and used.

44. 6-2c Selection Methods (cont.) • Screening for dysfunctional behavior • Employers do not want to hire applicants with dysfunctional tendencies such as drug addiction and dishonesty. • Organizations can minimize drug abuse costs by administering drug tests to applicants. • Applicant honesty is assessed to reduce instances of employee theft at the workplace. • The two primary methods for predicting dishonesty are polygraph tests and paper-and-pencil honesty tests.

45. 6-2c Selection Methods (cont.) • Screening for dysfunctional behavior • Polygraph tests: Designed to ascertain truthfulness of the information given by the examinee. • The Employee Polygraph Protection Act (EPPA) of 1988 bans most private-sector employers from using polygraph tests in the selection of candidates. • Paper-and-pencil honesty tests: Written tests that employers use to estimate an applicant’s propensity to steal from an employer. • Paper-and-pencil honesty tests may either be overt or personality-based measures.

46. 6-3a Employee Selection and the Manager’s Job • Determining needed competencies • Assessing job candidates • Providing input into selection decisions • Making job offers - Two important principles: • The offer should not be perceived as a gift; it must be sold to the candidate. • The offer should not remain open awaiting response for too long, which would preclude making an offer to another candidate.

47. 6-3a Employee Selection and the Manager’s Job (cont.) • The Manager’s role in validation • The actions taken by managers in the selection process affect the validity of the process. • When the validity of the selection process is challenged, as it may be in a discrimination suit, courts will scrutinize the manager’s actions. • The Manager’s role in complaint investigations

48. 6-3b How the HRM Department Can Help • HR professionals play two primary roles: • Providing technical support. • Helping managers conform to legal and technical standards throughout the selection process.

49. 6-3b How the HRM Department Can Help (cont.) • Technical functions

50. 6-3b How the HRM Department Can Help (cont.) • HR professionals assist managers in various ways: • Answering EEO-related questions and providing legal/EEO training. • Offering interviewer training programs. • Helping choose a selection device that would be most appropriate for a given situation. • Update veteran managers about changing legal requirements.