Chapter Selecting Applicants © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved Chapter Outline • 6-1 Gaining Competitive Advantage • 6-2 HRM Issues and Practices • 6-3 The Manager’s Guide © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-2c Selection Methods (cont.) • Screening for dysfunctional behavior Employers 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3b How the HRM Department Can Help (cont.) • Technical functions • Conduct job analyses and write job descriptions • Conduct initial screening of applicants • Set minimum qualifications for jobs • Conduct (or commission) background or reference checks • Determine which selection method to use • Approve selection decisions made by line managers • Develop application blanks • Monitor the firm’s hiring practices for EEO compliance and validity • Select, develop, and administer employment tests © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 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 © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers • Avoiding interviewer mistakes 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 information on the application blank; keep an open mind throughout the process Prepare a set of job-related questions and ensure that each is covered during the interview Do not telegraph the right answer prior to asking the question Withhold information regarding the job and worker requirements until the end of the interview © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Avoiding interviewer mistakes Ask questions that make it difficult for applicants to always present themselves favorably Avoid jumping to conclusions by probing applicants to elaborate and clarify previous responses Note any inconsistencies among the responses given by an applicant during the interview Avoid making snap judgments by preparing rating forms prior to the interview, listing relevant attributes Evaluate each candidate immediately after the interview; interview notes may be documented to defend against discrimination suits © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Conducting a structured interview Prepare for the interview in a thorough manner Begin and conduct the interview in a friendly but businesslike manner Solicit information in a nonjudgmental manner and maintain control of the interview Give pertinent information about the job and firm; honestly answer the applicant’s questions Terminate the interview by expressing appreciation and explaining the selection procedure © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Identifying the best candidate when a compensatory model is operating: Evaluate applicants on each individual attribute needed for the job Statistically combine the ratings to form a composite score—the composite being a weighted average, reflecting the relative importance of each attribute Select the applicant with the highest score © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Identifying the best candidate when a noncompensatory model is operating: A subset of candidates may be eliminated during various stages of the selection process if a candidate possesses a noncompensable deficiency; this approach is called “successive hurdles.” The use of successive hurdles lowers selection costs © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Dealing with EEOC investigations Should an applicant file a discrimination claim, the EEOC will notify the employer in writing within 10 days The company should launch its own investigation of the charges by preparing witness statements, preparing for a possible full-scale EEOC investigation, and subsequent litigation Upon completion of its own investigation, the company must decide whether to fight the charges or to settle © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-3c HRM Skill-Building for Managers (cont.) • Dealing with EEOC investigations (cont.) If no settlement is reached, the EEOC requires the employer and the complaining party to attend a “nofault” conference If the matter is not resolved during the conference, 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 is issued a ‘‘right to sue’’ and has 90 days to file a lawsuit © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved ... Technical Standards for Selection Practices • Validity, the technical term for effectiveness, refers to the appropriateness, meaningfulness, and usefulness of selection inferences • The closer the... 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... administering various types of assessments © 2010 Cengage Learning. Atomic Dog is a trademark used herein under license All rights reserved 6-2a Technical Standards for Selection Practices (cont.)