Best Practices in Recruitment and Selection

Best Practices in Recruitment and Selection

Shailendra Singh, Ph.D.

Indian Institute of Management Lucknow

04/19/23 IIML Presentation


Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection:Measurement, external, internalEmployment:Decision making, final match

OrganizationVision and Mission

Goals and Objectives

Staffing Organizations Model

The Hiring Process


Recruitment

Selection

Socialization

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 job’s availability to the market and attract qualified candidates to apply. The firm may seek applicants from inside the organization, outside the organization, or both.


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


Open vs. Targeted Recruitment

Open recruitment

Targeted recruitment

Job requirements matrix

Demographics

Geographic area

Recruitment sources

Tradition

Former employees

Passive job seekers

The military

Special availabilities

Key shortages


Alternatives to Recruitment

Outsourcing Contingent Workers Professional Employer Organizations--

Employee Leasing Overtime

External Recruitment Methods

Advertising Employment Agencies -

Private and Public Recruiters Special Events Internships Executive Search Firms


External Recruitment Methods (Continued)

Professional Associations Employee Referrals Unsolicited Walk-In Applicants Open Houses Event recruiting Virtual Job Fairs Sign-In Bonuses


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.

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 company’s policies, procedures, and performance expectations. Socialization can make the difference between a new worker’s feeling like an outsider and feeling like a member of the team.


Logic of Prediction:Logic of Prediction:Past Performance Predicts Future PerformancePast Performance Predicts Future Performance

Previous job(s)

Current job

Nonjob

Previous job(s)

Current job

Nonjob

Past Situations

Attraction

Performance

Satisfaction

Retention

Attendance

Attraction

Performance

Satisfaction

Retention

Attendance

HR Outcomes

New Situation (job)

Person

KSAOsMotivation

Sample Predict


Sample Selection SequenceSample Selection SequenceApplicant Flow Stage

ApplicantsApplicants

CandidatesCandidates

FinalistsFinalists

Offer ReceiversOffer Receivers

New HiresNew Hires

InitialInitial

Assessment Method

SubstantiveSubstantive

DiscretionaryDiscretionary

ContingentContingent

Quality of Measures

Reliability of measures

Validity of measures

Validity of measures in staffing

Validity generalization


Quality of Measures: Reliability

Measurement error

Actual score = true score + error

Deficiency error: Occurs when there is failureto measure some aspect of attribute assessed

Contamination error: Represents occurrence of unwanted or undesirable influence on the measure and on individuals being measured


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%


External Selection II Outline

Substantive Assessment Methods 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


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 individual’s 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?


Predictive Validity of Personality Tests

Big Five factors Conscientiousness (broadly promising)

Valid across almost all occupational groups; r = .31

Emotional stability (promising) 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?


How Conscientiousness Predicts Job Performance


Overview of Ability Tests

Definition -- Measures that assess an individual’s 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


Evaluation of Cognitive Ability Tests

Validity approaches .50 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


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 items04/19/23 IIML Presentation

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


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 qualified04/19/23 IIML Presentation

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 Manager’s Workshop) Situational judgment tests (combinations of above)

All the above can have good validity (.50+) & acceptanceDiscuss potential limitations of each of the above


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


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


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


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


Structured Interviews (continued)

Situational - Assess applicant’s ability to project his / her behaviors to future situations. Assumes the person’s 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


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 processDiscuss pros and cons of this approach


Discretionary Assessment Methods

Used to separate people who receive job offersfrom list of finalists (assumes each finalist is considered fully qualified for position)

Often very subjective, relying heavily on intuitionof decision maker

Factors other than KSAOs are evaluated Assess person/organization match Assess motivation level Assess people on relevant organizational

citizenship behaviors Should involve organization’s staffing philosophy regarding EEO/AA

commitments


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


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


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.

Examples of Structured Interview Questions


Type Example

Situational

Job Knowledge

Worker Requirements

You’re 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 didn’t pencil the meeting into your calendar and it slipped your mind until just now. What do you do?

What is the correct procedure for determining theappropriate oven temperature when running a newbatch of steel?

Some periods are extremely busy in our business.What are your feelings about working overtime?

APPROACHES TO PERSONNEL SELECTION: WHICH ARE MOST PREDICTIVE?

A. PERSONALITYB. REFERENCESC. INTERVIEWSD. INTELLIGENCE TESTSE. EDUCATION/GPAF. WORK SAMPLE TESTSG. ASSESSMENT CENTERSH. PEER RATINGSI. INTERESTS/VALUESJ. AGEK. WORK HISTORYL. TRAINING RATINGSM. SELF-RATINGS

RANKING


APPROACHES TO PERSONNEL SELECTION: WHICH ARE MOST PREDICTIVE?

A. WORK SAMPLE TESTSB. INTELLIGENCE TESTSC. ASSESSMENT CENTERSD. PEER RATINGSE. WORK HISTORYF. INTERVIEWSG. PERSONALITY TESTSH. REFERENCE CHECKSI. TRAINING RATINGSJ. SELF RATINGSK. EDUCATION/GPAL. INTERESTS/VALUESM. AGE

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


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

What is an Assessment Center?

Used as a method of selectionPut candidate in a realistic work situation in order to predict their performance in an actual work settingInvolves simulation

Usually takes between 2-4 daysHelps to show real job performance


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 candidate04/19/23 IIML Presentation

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


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”


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


Why are they Accepted as a Useful Tool?

Managers Rational approach Well organized

Candidates Believe they fairly and consistently test all

applicants


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


AT&T Management Progress StudyAssessment 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


AT&T Management Progress StudyEvaluation of Participants

Written reports/ratings after 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

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


Common Uses of Assessment Centers

Selection and Promotion Supervisors & managers Self-directed team

members Sales

Diagnosis Training & Development

needs Placement

Development Skill enhancement

through simulations04/19/23 IIML Presentation

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


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


Why focus on behavior?

Assessors rely on each others’ observations to develop final evaluations

Assessors must give clear descriptions of participant’s 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?”


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


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.


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

Uses calendar, develops “to-do” lists or tickler files in order to accomplish goals


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


Types of simulation exercises

In-basket Analysis Fact-finding Interaction

Subordinate Peer Customer

Oral presentation Leaderless group discussion

Assigned roles or not Competitive vs. Cooperative

Scheduling Sales call Production exercise


Advantages of Assessment Centers

Successfully predict a variety of important outcomes Job Performance Management Potential Training Performance Career Development


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

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


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 validity04/19/23 IIML Presentation

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

What if one predictor has high validity and high adverse impact?

And another predictor has low validity and low adverse impact?


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


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 Manager04/19/23 IIML Presentation

Relevant Factors: Selectingthe 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?


Combined Modelfor Recruitment Manager


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 Consequences of Cut Scores


Consequences of Cut Scores


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

Professional Guidelines for SettingCutoff Scores


Exh. 11.7: Use of CutScores in Selection Decisions


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

Finalists are banded together into rank-ordered categories


Exh. 11.9: Methods of Final Choice


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


Employment Contracts

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


Employment Contracts

Requirements for enforceable contract

Offer

Acceptance

Consideration

Parties to contract

Employee or independent contractor

Third parties04/19/23 IIML Presentation

Employment

contract

Employment Contracts(continued)

Form of contract Written contract

Suggestions Oral contract

One-year rule Parole evidence Suggestions

Disclaimers Oral or written statement explicitly limiting an employee

right and reserving that right for employer Recommendations for enforcement


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


Best Practices in Recruitment and Selection

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