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    Human Resource

    Management Class 4

    Recruitment in labor markets,selection and placement

    Pcs,

    26 February 2013

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    Concepts and learning

    objectives

    To describe the phases in strategic recruiting anddecisions made in each phase

    To discuss why Internet recruiting has grown andhow employers are conducting it

    To list and discuss the external recruiting sourcesTo discuss factors to consider when evaluating

    recruiting efforts

    Describe the sequence of a typical selection

    process

    Identify the three types of selection tests and legal

    concerns about their uses

    Discuss several types of selection interviews and

    some key considerations when conducting these

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    Definitions

    Recruiting:the process of generating a pool of qualified

    applicants for organizational jobs

    Labor markets:the external supply pool from which

    organizations attract employees

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    Strategic Approach to

    RecruitingBenefits of a Strategic ApproachMatches recruiting activity with organizational and human

    resource plans.

    Acquiring the Right Human Capital Entails:Knowing the business and industry to successfully recruit

    qualified employeesIdentifying keys to success in the labor market, including ways

    to deal with competitors recruiting efforts

    Cultivating networks and relationships with sources ofprospective employees

    Promoting the company brand so that the organizationbecomes known as a good place to work

    Creating recruiting metrics in order to measure theeffectiveness of recruiting efforts

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    Strategic Recruiting Stages

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    Labor Market Components 1

    Labor markets:External supply pool from which organizations

    attract employees

    Tight versus Loose Labor MarketsLow unemployment creates competition for

    employees, raising labor costs.

    High unemployment results the availability of

    more applicants and more qualified applicants.

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    Labor Market Components 2

    Labor force population:All individuals who are available for selection if all possible

    recruitment strategies are used

    Applicant population:

    a subset of the labor force population that is

    available for selection using a particular recruiting

    approach

    is influenced by:recruiting method

    recruiting message

    applicant qualifications required

    administrative procedures

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    Labor Market Components 3

    Applicant poolall persons who are actually evaluated for

    selection

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    Recruiting Decisions that Affect the

    Applicant Population

    Recruiting methodAdvertising medium chosen, including use of

    employment agencies

    Recruiting messageWhat is said about the job and how it is said

    Applicant qualifications required

    Education level and amount of experiencenecessary, for example

    Administrative proceduresWhen recruiting is done, applicant follow-up,

    and use of previous applicant files

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    Labor Markets and Recruiting

    IssuesGeographic labor markets

    Local

    Regional markets: vary in terms of workforceavailability and quality

    Global labor marketsControversial issue

    Requires different approaches and understandingcompared to local labor markets

    Regulations of the local governmentIndustry and occupational labor markets

    Occupational labor markets are based on the KSAsrequired for the jobs

    Educational and technical qualifications

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    Strategic Recruiting Decisions

    Organization-Based vs. OutsourcedRecruitingHR knows organization best

    Outsourcing frees up time and decreases HRStaff

    Professional Employer Organizations(PEOs) and Employee Leasing

    Saves HR costs but increases total payrollcosts

    Increases compliance with governmentregulations and requirements.

    Benefits may be more available

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    Typical Division of HR Responsibilities:

    Recruiting

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    Effective Recruiting

    Recruiting

    Presence and Image

    Training ofRecruiters

    Regular vs. Flexible

    Staffing

    EffectiveRecruiting

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    Recruiting Presence and

    ImageContinuousEmployer is kept in the recruiting market

    College recruiting a relationship is built withthe school

    IntensiveCampaignMay be a sign of ineffective HR planning

    ImageIt has a significant effect on the number of

    applicants!Should be part of the organizations marketing

    efforts, and linked to the overall image andreputation of the organization and industry

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    Training of Recruiters

    What should they be trained in?Interviewing techniques

    Communications skills

    Knowledge of the jobs being filledEqual opportunity regulations

    Sensitivity to diversity issues

    Recruiters behaviors and actionsshould be regularly monitored!

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    Regular vs. Flexible Staffing

    Flexible StaffingThe use of workers who are not

    traditional employees.

    Temporary workersHiring temporary staff members or contracting

    with agencies supplying temporary workers on

    a rate-per-day or rate-per-week basis.

    Independent contractorsWorkers who perform specific services on a

    contract basis.

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    Recruiting and Diversity Considerations

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    Recruiting and EEO

    considerations

    Employment advertising

    No direct or indirect references implying gender

    of age are permittedEqual employment opportunity employer

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    Recruiting Diverse Workers

    Older WorkersMid-life career changers: Those who are

    burned out in their jobs and career fieldsand leave voluntarily to try new fields

    Displaced older workers: Those whohave worked but have been displaced,often involuntarily, through job reductionsor plant closings

    Retirees: Those who took earlyretirement buyouts or formally retired fromprior jobs

    Individuals with Disabilities

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    Recruiting source choices:

    InternalInternal: promoting from within the organization

    Advantages:

    morale of promotee and other employees

    Can support the culture of employee engagement

    better assessment of abilities

    lower cost for some jobs

    motivator for good performance

    causes a succession of promotionshave to hire only at entry level

    Transfers save orientation and training costs

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    Recruiting source choices:

    Internal

    Disadvantages:Inbreeding - employee cloningpossible morale problems of those not

    promoted

    political infighting for promotionsJobs that require specialized training and

    experience cannot be easily filled from theinside

    need for management developmentprogramHiring for gaining business secrets -

    P&G, Wal-Mart sued Amazon.com

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    Recruiting source choices:

    External

    External: hiring from outside theorganization

    Advantages:

    new blood brings new perspectives

    cheaper and faster than training

    professionals

    no group of political supporters inorganization already

    may bring new industry insights

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    Recruiting source choices:

    External

    Disadvantages:may not select someone who will fit the

    job or the organization

    may cause morale problems for internalcandidates not selected

    longer adjustment or orientation time

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    Internal recruiting

    Internal recruiting processesOrganizational databases

    Profiles containing background and KSA information on

    current employees that allow for key word searches to

    locate suitable candidates for open positions and careerdevelopment.

    Job posting:

    a system in which the employer provides notices of

    job openings and employees respond to applythe purposeof the job posting system is to provide

    employees more opportunities to move within the

    organization

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    Job posting potential

    questionsWhat happens if no qualified employees

    respond to postings?

    Must employees inform their supervisors that

    they are applying for another job?

    Are there restrictions on how long an employee

    must stay in a job before applying to another

    one?

    How much notice should an employee requiredto give before transferring to a new

    department?

    What types of or levels of job will not be

    posted?

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    Promotions and job transfers

    Most often successful but:A persons performance on one job may not be a

    good predictor of performance on another

    because different skills may be required in the

    new job!The created vacancies must be filled

    Planning should occur before promotions not

    afterwards!

    Flat organizations - less chances for promotions

    Glass ceilings

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    Employee-Focused Recruiting

    Current-Employee ReferralsA reliable source composed of

    acquaintances, friends, and familymembers of employees that are

    recommended by current employees.Can violate EEO regulations if it is the

    sole source of applicants.

    Re-recruiting of Former Employeesand ApplicantsIndividuals who have left for other jobs

    might be willing to return.

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    External Recruiting

    Employment Agencies

    and Headhunters

    College and

    University Recruiting

    High Schools and

    Technical Schools

    Labor

    Unions

    External

    Recruiting

    Sources

    Media Sources

    and Job Fairs

    Competitive

    Sources

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    External recruiting

    College and university recruitingDeterminants of college and

    university selection:

    Current and anticipated job openingsCollege reputation

    Experiences with placement offices andprevious graduates

    Organizational budget constraintsCost of available talent and typical

    salaries

    Market competition

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    Recruiting sources 1

    School recruitingHigh schools

    Vocational/or technical schools

    Labor unions

    Employment agencies and search firmsfees can be high!

    Contingency firms

    Retainer firmCEOs hired from the outside or promoted from

    inside?

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    Recruiting sources 2Competitive sourcesProfessional and trade associations

    Trade publicationsMediabistro.com

    Competitors

    Media sourcesNewspapers, magazines, radio, tv, direct mail

    Judging the success of the ad by the number ofresponses is a mistake!

    Follow up: which sources produced employees whostayed longer and performed better

    Job fairs and special eventsState employment agenciesunemployment

    agency

    What to Include in an Effective

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    What to Include in an Effective

    Recruiting Ad

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    Internet Recruiting Methods

    Job Boards

    Professional/Career Web Sites

    Employer Web Sites

    E-RecruitingMethods

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    Internet Recruiting 2

    Advantages

    Recruiting cost savings

    Recruiting time savings

    Expanded pool ofapplicants

    Morale building forcurrent employees

    Disadvantages

    More unqualifiedapplicants

    Additional work for HRstaff members

    Many applicants arenot seriously seekingemployment

    Access limited orunavailable to someapplicants

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    Web

    http://www.quintcareers.com/jobseeker_job_sites.html

    http://www.quintcareers.com/career_centers/

    http://jobline.hu//Default.aspx

    http://www.hrportal.hu/http://www.profession.hu

    http://jobpilot.hu/

    http://www.monster.comhttp://www.monster.hu

    http://cvonline.hu

    http://www.quintcareers.com/jobseeker_job_sites.htmlhttp://www.quintcareers.com/jobseeker_job_sites.htmlhttp://www.quintcareers.com/career_centers/http://jobline.hu//Default.aspxhttp://www.hrportal.hu/http://www.profession.hu/http://jobpilot.hu/http://www.monster.com/http://www.monster.hu/http://cvonline.hu/http://cvonline.hu/http://www.monster.hu/http://www.monster.com/http://jobpilot.hu/http://www.profession.hu/http://www.hrportal.hu/http://jobline.hu//Default.aspxhttp://www.quintcareers.com/career_centers/http://www.quintcareers.com/jobseeker_job_sites.htmlhttp://www.quintcareers.com/jobseeker_job_sites.html
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    Recruiting Evaluation and

    Metrics

    Evaluating

    Recruiting

    Satisfaction

    Evaluating

    Recruiting

    Quality and

    Quantity

    Evaluating

    the Time

    Required to

    Fill

    Openings

    Evaluating

    Recruiting

    Costs and

    Benefits

    Evaluating Recruiting Efforts

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    Recruiting Source Value Index for

    Employers

    Source: Recruiting Source Value Index, Workforce Recruiting,

    [email protected], November 9, 2006, 3.

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    General Recruiting Process

    Metrics

    Yield ratiosA comparison of the number of applicants at one

    stage of the recruiting process to the number at thenext stage.

    Selection rateThe percentage hired from a given group of

    candidates.

    Acceptance Rate

    The percent of applicants hired divided by totalnumber of applicants.

    Success Base RateComparing the percentage rate of past applicants who

    were good employees to that of current employees.

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    Sample

    RecruitingEvaluation

    Pyramid

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    Increasing Recruiting

    Effectiveness

    Technical Approaches Non-Technical Approaches

    Resume mining software Applicant tracking

    Employer career websites

    Internal mobility tracking

    system

    Personable recruiters Emphasizing positives about the

    job and employer within a

    realistic job preview

    Fair and considerate treatment

    in the recruiting process

    Enhancing applicants perceivedfit with the organization

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    Selection and placement

    Selection:

    process of choosing individuals who have

    needed qualifications to fill jobs in an

    organizationGood training will not make up for bad

    selection

    Hire hard, manage easy

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    Placement

    Placement:fitting a person to the right job

    Person-job fit:

    Matching the knowledge, skills andabilities (KSAs) of people to the

    characteristics of jobs (tasks, duties and

    responsibilitiesTDRs).

    Benefits of person-job fitHigher employee performance

    Lower turnover and absenteeism

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    Person-Organization fit

    Individual Organization

    Goals

    Values

    Interests

    Expectatio

    nsKSAs

    Objectives and

    strategies

    Values Culture

    Structure andmanagement

    Rewards

    The congruence between

    individuals and

    organizational factors.

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    Criteria, predictors and job

    performance 1

    In an effective selection system you have

    to know:

    What constitutes effective job performance?

    What employee characteristics are associated

    with that performance?

    Selection criterion:

    characteristic that a person must have to do ajob successfully

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    Criteria, predictors and job

    performance II

    Predictors

    The measurable or visible indicators of a

    selection criterion

    Validity:correlation between a predictor and job

    performance

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    Concurrent

    andPredictive

    Validity

    8

    46

    Job Performance Selection Criteria and

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    Job Performance, Selection Criteria, and

    Predictors

    C it i di t d j b

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    Criteria, predictors and job

    performance 2

    Reliability:

    of a predictor is the extent to which it

    repeatedly produces the same results over

    time

    One predictor

    Multiple hurdles

    Compensatory approach

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    Combining Predictors

    Multiple HurdlesEstablishing a minimum cutoff (level of

    performance) for each predictor, andrequiring that each applicant must scoreat least the minimum on each predictor tobe considered for hiring.

    Compensatory Approach

    Scores on all predictors are addedtogether, allowing a higher score on onepredictor to offset a lower score onanother predictor.

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    Selection process flowchart

    Applicant job interest

    Pre-employment screening

    Application form

    Test Interview

    Background investigation

    Additional interview (optional)

    Conditional job offer

    Medical exam/drug test

    Job placement

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    The Selection Process 1

    Legal Concerns in the SelectionProcessEqual employment opportunity (EEO)

    laws and regulationsNon-discriminatory job-related selection

    practices

    Who is an applicant?The employer must have taken steps to fill a

    particular job.The individual must follow the application

    procedure.

    The individual must have expressed interest in

    a particular position.

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    The Selection Process 2

    Applicant Flow DocumentationEmployers must collect data on the race, sex,

    and other demographics of applicants to fulfill

    EEO reporting requirements.

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    Applicant Job Interest

    Realistic Job PreviewThe process through which a job

    applicant receives an accurate picture of

    the organizational realities of the job.Prevents the development of unrealistic job

    expectations that cause disenchantment,

    dissatisfaction, and turnover in new employees.

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    Pre-Employment Screening

    Pre-Screening InterviewPurpose: verify minimum qualifications

    Electronic Screening

    8

    54

    There is a large volumeof applicants

    Quality of hires needsto be increased

    Hiring cycles needto be shortened

    The cost of hiring needsto be reduced

    There is a need to reachunvisited geographic areas

    When To UseElectronicScreening

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    Applications

    Purposes of Applications

    Record of applicants interest in the job

    Provides a profile of the applicant

    Basic record for applicants hired

    Research effectiveness of the selection process

    Resumes as Applications

    Resumes are applications for EEO purposes.

    Resumes should be retained for at least three

    years.

    A li ti Di l i d

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    Application Disclaimers and

    Notices

    Employment-At-Will

    References Contacts

    Employment Testing

    Application Time Limit

    Information Falsification

    ApplicationForm

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    Application 5

    Immigration formsEEO considerations and application formsIllegal questions:

    Marital statusHeight/weight

    Number and age of dependents

    Information on spouse

    Date of high school graduationContact in case of emergency

    Resumes as applications

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    Application 6

    Reviewing application forms andresumes

    Gaps in employment

    Education completionResponsibility and job levels

    Qualifications and accomplishments

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    Selection testing 1

    Ability testsCognitive ability tests: tests that measure an

    individuals thinking, memory, reasoning, andverbal and mathematical abilitiesWonderlic Personnel Test, General Aptitude Test

    Battery

    Physical ability tests: measure individualabilities such as strength, endurance and

    muscular movement

    Psychomotor tests: measure dexterity, hand-eye coordination, arm-hand steadiness andother factors

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    Selection testing 2

    Ability testsWork sample tests: require an applicant to

    perform simulated job task

    Situational Judgment TestsMeasure a persons judgment in work

    settings.

    Assessment centersA series of evaluation exercises and tests

    used for the selection and development ofmanagerial personnel.

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    Selection testing 3

    Assessment centersMultiple raters assess participants in

    multiple exercises and problems that are

    job content-related to the jobs for whichthe individuals are being screened.

    Personality tests

    Minnesota Multiphasic Personality

    Inventory

    Myers-Briggs

    Big Five

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    Myers-Briggs Type Indicator

    Extroversion versus

    introversion

    Sensing versusintuition

    Thinking versus

    feeling

    Judging versus

    perceiving

    Courtesy of Thompson Doyle Hennessey & Everest

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    The big five

    Paul Costa and Robert McRaeNOT personality types! Super traits

    Six traits under five headings

    O C E A N

    openness extroversion

    neuroticism conscientiousness

    agreeableness

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    Big Five Personality

    Characteristics

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    Selection testing 4

    Honesty/integrity testingovert integrity tests

    personality-oriented integrity tests

    negative public relations impact!

    invasion of individual privacy

    Polygraph tests (lie detector)Polygraph testing in pre-employment is prohibited

    (in most instances) by the Employee PolygraphProtection Act.

    Exempt! In the US Federal, state, local governmentagencies, security companies, pharmaceuticalcompanies

    P di ti lidit f diff t l

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    Predictive validity of differentemployeeassessment methods 1

    Measure Validity coeffcientastrology 0,0 !

    graphology 0,02 !

    Years of education 0,10Years of job experience 0,18

    references 0,26

    biodata 0,35

    assessment centres 0,37

    P di ti lidit f diff t l

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    Predictive validity of differentemployeeassessment methods 2

    Measure Validity coefficientpersonality assessments

    0,40

    integrity tests 0,41

    structured interviews 0,51intelligence tests 0,51

    work sampling 0,54

    intelligence tests and work sampling 0,60

    intelligence tests and structured interviews 0,63

    intelligence and integrity tests 0,65

    perfect selection 1,0

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    Selection interviewing 1

    Conducted at 2 levelsinitial: done by the HR department

    in-depth: done by supervisors and the HR

    departmentAim:

    obtain additional information about the

    applicant

    clarify information gathered throughout

    the selection process

    Reliability and Validity of

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    Reliability and Validity of

    Interviews

    Intra-rater reliability: interviewers who areconsistent in their ability to select individuals who

    will perform well.

    Inter-rater reliability: the extent to which differentinterviewers agree in the selection of individuals

    who will perform well.

    Face validity: a test that appears to be valid

    because external observers assume, without proof,that it is.

    Unstructured interviews are less reliable and less

    valid than structured interviews.

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    Selection interviewing 2

    To minimize EEO concerns:identify objective criteria related to the job

    sought by the interview

    specify decision-making criteria usedprovide multiple levels of review for

    difficult or controversial decisions

    use structured interviews

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    Types of selection interviews

    Most effective Structured interviewsBiographical

    Behavioral

    Competency

    Situational

    Less structured interviews

    Non-directiveStress

    Least effective Unstructured

    interviews

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    Structured interviews 1

    Uses a set of standardized questionsasked of all job applicants

    Especially useful in initial screening

    Reliable and validEnsures that you have similar

    information about each candidate

    Biographical InterviewFocuses on a chronological exploration of

    the candidates past experiences.

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    Structured interviews 2

    Behavioral interviewapplicants are asked to give specific

    examples of how they performed a task or

    handled a problem in the past

    Assumes that past behaviors are good

    predictors of future actions

    Helps discover applicants suitability for current

    jobs based on past behaviors.

    Assumes that applicants have had experience

    related to the problem.

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    Structured interviews 3

    Competency InterviewSimilar to the behavioral interview except

    that the questions are designedspecifically to provide the interviewer with

    something to measure the applicantsresponse againstthat is, thecompetency profile for the position,which includes a list of competencies

    necessary to do that particular job.Describe your most significant

    accomplishment one question interview

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    Structured interviews 4

    Situational interviewit is composed of questions about how

    applicants might handle specific job

    situations

    questions are based on job analysis and

    checked by job experts

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    Less structured interviews

    Nondirective interviewuses questions that are developed from

    the answers to previous questions

    difficulty: to keep it job related

    subjective

    Stress interview:designed to create anxiety and put

    pressure on the applicant to see how theperson responds

    high-risk approach for the employer

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    Types of Selection Interviews

    ?

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    Who does interviews?

    Panel interviewseveral interviewers interview the

    candidate at the same time

    Team interviewapplicants are interviewed by the team

    members with whom they will work

    Video interviewing

    Eff i i i i

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    Effective interviewing

    Planning!Review: pre-employment screening information

    The application or the cv

    The job description

    Identify specific areas for questioning

    Controlling the interview: knowing inadvance what information must becollectedQuestioning techniquesAvoid listening responses be friendly

    and neutral

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    Questions

    CommonlyUsed in

    Selection

    Interviews

    8

    80

    Q ti t b id d

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    Questions to be avoided

    Yes/No questionsObvious questions

    Questions that rarely produce a true

    answerLeading questions

    Illegal questions

    Questions that are not job related

    P bl i th I t i

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    Problems in the Interview

    Problems inthe Interview

    Halo

    Effect

    Snap

    Judgments

    Negative

    Emphasis

    Biases and

    Stereotyping

    Cultural

    Noise

    Sources of Background Information

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    Goals of background

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    Goals of background

    screening

    To show that the employer exerciseddue diligence in hiring

    to provide factual information about a

    candidateto discourage applicants with

    something to hide

    to encourage applicants to be honeston applications and during interviews

    Legal Issues in Background

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    Legal Issues in Background

    Investigations

    Risks of negligent hiring and retentionEmployers are liable for employees actions.

    Federal Privacy Act of 1974 requires signed

    releases from applicants to avoid privacy issues.Negligent hiring

    Occurs when an employer fails to check thebackground of an employee who injures someone.

    Negligent retention

    Occurs when an employer is aware an employeemay be unfit for employment, continues to employ

    the person, and the person injures someone.

    Medical examinations and

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    Medical examinations and

    inquiries

    ADA and medical inquiriesDrug testing

    Genetic testing

    reasons:

    link workplace health hazards andindividuals with certain geneticcharacteristics

    make workers aware of genetic problems

    that could occur in certain work situationsexclude individuals from certain jobs if

    they have genetic conditions that increasetheir health risks

    Fi l t f l ti

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    Final step of selection

    Making the job offer

    Offer Guidelines

    Formalize the offer with a letter to the

    applicant clearly stating the terms andconditions of employment.

    Avoid vague, general statements and

    promises.Require return of a signed acceptance of the

    offer.

    Summary and implications for

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    y p

    future HR specialists

    Recruiting is a process of generating a poolof qualified applicants for organizational jobsthrough a series of activitiesMust be viewed strategically

    Evaluation of recruitment helps to identifysuccessful recruiting strategies and methodsSelection is a process that matches

    individuals and their qualifications to jobs in

    an organizationThe selection process must be handled bytrained, knowledgeable individualsTools that are used: tests interviews