Selecting Applicants

3. 6-1a Opening Case: Gaining Competitive Advantage at Southwest Airlines 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 appropriateness, meaningfulness, and usefulness of selection inferences The technical term for �effectiveness� Achieving validity Manager must have a clear notion of the needed job qualifications. Manager must use selection methods that reliably and accurately measure these qualifications.

6. 6-2a Technical Standards for Selection Practices (cont.) Determining job qualifications 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 Use selection methods that reliably and accurately measure the needed qualifications. Reliability refers to the consistency of a measurement. Reliable evaluations are consistent across both people and time. When selection scores are unreliable, their validity is diminished.

8. 6-2a Technical Standards for Selection Practices (cont.) To increase the reliability of selection practices: Establish a good rapport with candidates Make them feel at ease Ask questions that are clear Ask questions that are moderately difficult Administer several measures to assess each important KSA

9. 6-2a Technical Standards for Selection Practices (cont.) How does a company decide which selection technique to use? Behavior consistency model Specifies that the best predictor of future job behavior is past behavior performed under similar circumstances Implies that the most effective selection procedures are those that focus on the candidates� past or present behaviors in situations that closely match those they will encounter on the job

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 Evaluate the applicant�s success on each behavior relevant to the job 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 A firm gathers evidence that it followed appropriate procedures in developing its selection program. 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. The employer must demonstrate that 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 Two pieces of information are required. 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: Calculated by statistically correlating predictor scores with criterion scores

14. 6-2a Technical Standards for Selection Practices (cont.) Criterion-related validation study Predictive validation study Information is gathered on actual job applicants. Criterion scores cannot be gathered until the applicants have been hired and on the job for several months. Concurrent validation study Information is gathered on current employees. More commonly used Can be conducted quickly Research indicates that the two types of studies seem to yield approximately the same results.

15. 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 Data showing the similarity between jobs for which the validity evidence is reported and the job in the new employment setting Data showing the similarity between the selection measures in the other studies composing the validity evidence and those measures to be used in the new employment setting

16. 6-2b Legal Constraints on Employee Selection 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

17. 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 in regard to disparate impact claims If an employment decision results in disparate impact, the organization must: Eliminate the selection device(s) causing the disparate impact Demonstrate the validity of the selection device(s)

18. 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

19. 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

20. 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. Managers should avoid asking any questions regarding pregnancy during an employment interview. If an applicant�s pregnancy is readily apparent, managers should ignore the condition.

21. 6-2b Legal Constraints on Employee Selection (cont.) Age Discrimination Guidelines Prohibits disparate treatment directed towards applicants aged 40 and above 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. Also states that employment practices that have a disparate impact on individuals is protected under the Age Discrimination Employment Act is unlawful unless it can be justified by a business necessity.

22. 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 Traditional denominations and people not belonging to a formal religion are both protected �Reasonable accommodation� �Undue hardship� �de minimus principle�

23. 6-2b Legal Constraints on Employee Selection (cont.) Disability Discrimination Guidelines Broad definition which includes many types of disorders, such as: Illnesses (e.g., AIDS, cancer, diabetes) Losses (e.g., loss of limb, sight, hearing, as well as learning disabilities and mental retardation) Emotional and mental illnesses (e.g., manic depression, epilepsy, and schizophrenia) Recovery (e.g., recovering alcoholics and drug addicts)

24. 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 Protects job candidates and employees from unreasonable intrusions by the employer (i.e., the government) Fifth Amendment to the U.S. Constitution Provides citizens with equal protection under the law Applies to federal employees Fourteenth Amendment to the U.S. Constitution Provides citizens with equal protection under the law Applies to state employees

25. 6-2b Legal Constraints on Employee Selection (cont.) Tort Law Constraints on Selection 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 Defamation �The unprivileged publication of a false oral or written statement that harms the reputation of another person.�

26. 6-2c Selection Methods Application blanks Biodata inventories Background investigations Reference checks Employment interviews Employment tests Assessment centers

27. 6-2c Selection Methods (cont.) Application blanks Uses To determine whether candidates meet the minimum qualifications for the job Applications help employers judge the presence (or absence) of certain job-related attributes. Information contained on the application blank can be used to �red flag� any potential problem areas concerning the applicant.

28. 6-2c Selection Methods (cont.) Questions to refrain from on an application blank Questions that allow the employer to identify an applicant�s protected group membership Example: Date of birth, sex, or religious preference Questions that are not directly job related yet have a disproportionate impact on one or more protected groups. Example: �What is your height and weight?� Questions that seek information which traditionally has been used to screen out members of certain protected groups. Example: �How may children do you have?�

29. 6-2c Selection Methods (cont.) Biodata inventories Responses are objectively evaluated Two types of biodata inventories: Weighted application blanks Biographical information blanks Used as a prescreening device to predict tenure Excellent predictors of job success Few companies use this method Some legal concerns

30. 6-2c Selection Methods (cont.) Background investigations Traditionally used for two purposes: To screen applicants for positions of trust in occupations such as law enforcement, private security, and nuclear power To screen candidates for �special duty of care� positions in order to satisfy requirements imposed by negligent hiring law Employers must avoid violating the legal rights of applicants. Fair Credit Reporting Act Applicants must be notified if employment is denied because of information obtained during an investigation.

31. 6-2c Selection Methods (cont.) Reference checks Involves collecting information from applicants� previous employers Provides 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

32. 6-2c Selection Methods (cont.) Legal guidelines for giving references Truthful and its truth can be proven Not conveyed with malicious intent Communicated only to individuals who are �interested parties� Job related The information pertains to issues about which the reference-seeker has a legitimate need to know.

33. 6-2c Selection Methods (cont.) Employment Interviews Provides an opportunity for applicants to describe their previous work experience, educational history, career interests, likes and dislikes, etc. Four types of valuable information sought during an interview: Technical knowledge Self-evaluative knowledge Situational information Behavior description information Raise the same legal concerns as application blanks

34. 6-2c Selection Methods (cont.) Employment tests Mental ability tests Designed to measure intelligence or aptitude Used primarily for assessing entry-level applicants Used for jobs that do not require specific job-related skills Determine whether the applicants have the capacity to learn job skills successfully Often have a disparate impact on certain protected groups

35. 6-2c Selection Methods (cont.) Personality tests The five personality characteristics most often measures by these tests, called �The Big Five� are: Extroversion Emotional stability Agreeableness Conscientiousness Openness to experience Possible problems with personality tests Evidence on the validity of personality tests has been mixed. The validity is situation specific Possible legal problems

36. 6-2c Selection Methods (cont.) 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 Managerial skills Disadvantages of work sample tests: Quite expensive Possible safety problem

37. 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

38. 6-2c Selection Methods (cont.) Assessment centers Associated with work sample tests May last from two to five days The most commonly used work sample tests are: The leaderless group discussion Management games In-basket Been found to be quite valid when appropriately developed and used

39. 6-2c Selection Methods (cont.) Screening for dysfunctional behavior Employers do not want to hire applicants with dysfunctional tendencies. Such tendencies include: Drug addiction Dishonesty Assessing applicant honesty Polygraph tests Employee Polygraph Protection Act (EPPA) Paper-and-pencil honesty tests Overt tests Personality-based measures

40. 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.

41. 6-3a Employee Selection and the Manager�s Job (cont.) Ensuring validity 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. Complaint Investigations

42. 6-3b How the HRM Department Can Help Two primary roles: Providing technical support Helping managers conform to legal and technical standards

43. 6-3b How the HRM Department Can Help (cont.) Technical functions

44. 6-3b How the HRM Department Can Help (cont.) Assisting the manager HR professionals are also called on to assist the manager in various ways: Answering EEO-related questions Offering interviewer training programs Helping the manager choose a selection device that would be most appropriate for a given situation Provide legal/EEO training for managers Update veteran managers about legal requirements

45. 6-3c HRM Skill-Building for Managers Avoiding interviewer mistakes The manager must have a clear idea of the type of person needed to fill the job. Review and revise the job description as needed Correctly interpret the available information on the application blank, and remember that it is tentative for applicant abilities Prepare a set of job-related questions prior to the interview and ensure that each is covered during the interview Do not telegraph the right answer prior to asking the question

46. 6-3c HRM Skill-Building for Managers (cont.) Withhold information regarding the job and worker requirements until the end of the interview Ask questions that make it difficult for applicants to always present themselves favorably Avoid jumping to conclusions by probing in order to get applicants to elaborate and clarify previous responses Manages should also note any inconsistencies among the responses given by an applicant during the interview.

47. 6-3c HRM Skill-Building for Managers (cont.) Avoid making snap judgments by preparing rating forms prior to the interview, listing relevant attributes Evaluate each candidate immediately after the interview

48. 6-3c HRM Skill-Building for Managers (cont.) Conducting a structured interview Prepare for the interview in a thorough manner Begin the interview in a friendly but businesslike manner Solicit information in a nonjudgmental manner and maintain control of the interview Give information about the job and firm Honestly answer the applicant�s questions Terminate the interview by expressing appreciation and explain the procedure

49. 6-3c HRM Skill-Building for Managers (cont.) Identifying the best candidate when a compensatory model is operating: Rate the applicants on each individual attribute needed for the job Statistically combined the ratings to form a composite score�the composite being a weighted average, reflecting the relative importance of each attribute The applicant with the highest score would then be selected.

50. 6-3c HRM Skill-Building for Managers (cont.) Identifying the best candidate when a noncompensatory model is operating: �Successive hurdles�: A subset of candidates may be eliminated during various stages of the selection process if you learn that a candidate possesses a noncompensable deficiency. Additional candidates may be eliminated at later points. The use of successive hurdles lowers selection costs.

51. 6-3c HRM Skill-Building for Managers (cont.) Dealing with EEOC investigations Should an applicant file discrimination claim, the EEOC will notify the employer in writing within 10 days. When the manager serves as a witness, remember to: Give the attorney all known facts Be prepared to provide supporting documents Separate facts from assumptions Upon completion of its own investigation, the company must decide whether to fight the charges or to settle.

52. 6-3c HRM Skill-Building for Managers (cont.) If no settlement is reached, the EEOC requires the employer and the complaining party to attend a �no-fault� conference. EEOC official hears both sides of the story. About 40 percent of all cases are settled at this stage. If the matter is not resolved, the EEOC will conduct a full-scale investigation. Ultimately, the EEOC will either issue a �cause� or �no cause� decision. If the finding is a �no cause� the complaining party has 90 days to file a lawsuit.