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									Recruitment and Selection
           HRM 2254

       Marjo-Riitta Parzefall
       Hanken, 24.1.2007
       The Objectives of the Lecture

• To view the recent trends in the labour markets and
  their influence on HRM.
• To discuss the recruitment process and alternative
  ways of recruiting employees.
• To examine the selection process as a two-way-
• To evaluate a range of selection methods and
• To review approaches to selection decision-making.
              The Changing Context

• Knowledge intensification of work
• Demographic developments and diversity at the
• ICT, e-commerce
• Increased customer importance and power
• Increased and changed competition as a result of
  globalisation and internationalisation of goods, services,
  finance, information, workers...
• Constant change: ’Here today, gone tomorrow’

            MAKE A DIFFERENCE !!!
                The War for Talent

• The increased importance of ’intangible assests’: in S&P
  500 companies, up from 20% of the value of the
  company in 1980 to 70% in 2006.

• Employer Branding = A targeted long term strategy to
  manage the awareness and perceptions of employees,
  potential employees and related stake-holders with
  regards to a particular firm (Backhaus & Tikoo, 2004).

• A Image management? A form of new Paternalism?
     The Most Popular Employers among
     Business Students in Finland in 2006:
1.    Nokia               8. Kone
2.    Finnair             9. Fazer
3.    L’Oreal             10. Amer sports
4.    Ernst & Young       11. OP-ryhmä
5.    Nordea              12. Sanoma WSOY
6.    PwC                 13. Suomen Pankki
7.    Stockmann           14. UPM-Kymmene
     Contingency Perspective to HRM
• The ownership, sector, size, tradition and the stage
  of development of the organization;
• The degree of turbulence in the environment,
  PESTIL contexts external to the organization;
• The approach of the senior executives and staff to
• The approach to employment relationship; and
• The competence, skills, capacity, reputation and
  track-record of HR staff.

              Implications for recruitment and
          Recruitment and Selection

      Recruitment                      Selection
                               • A process which involves
• The process of attracting            the application of
  qualified candidates from       appropriate methods with
   whom it is possible to          the aim of selecting and
     select and appoint              appointing competent
    competent workers.
                                 • A two-way process of
• Similarities to marketing,
                                      communication and
  communicates about the
                                    establishing a positive
          firm.                     psychological contract.
 Recruitment & Selection as a System

Candidates        Recruitment            Selection

    Labour market                Rejection       Effective
    characteristics                Exit         employees

                        review and
         Job Analysis & Person-Job Fit

Job Analysis:
• Determine the tasks and the attributes required from the
  employee to perform the tasks successfully.
Person-Job Fit:
1) There are intrinsic individual differences.
2) There are different types of jobs.
3) Satisfaction is highest and turnover lowest when
   personality and occupation are in an agreement.

           Recently, more emphasis on finding employees
           who match organizational cultures/organizations
           rather than particular jobs.
Person-Job Fit ???
       Recruitment: Internal or External?
Internal recruitment has certain advantages:

 Cultural control
 Motivating & rewarding effect as people know they have career
 Development of people through transfers
 Lower recruitment & selection costs, a faster process
 The person is known
 The person is likely to have realistic expectations

...And certain disadvantages:

-   Is new blood needed? A limited pool of candidates...
-   Are suitable persons available, and will they be ’released’…
-   How to make the job and the person connect…
-   What follows if the internal candidate who applies is not selected…
               About Recruitment

•   How do companies recruit? Figures from the UK 2003:
      1. Advertisement in local press
      2. Specialist journals
      3. Corporate web-sites
      4. Recruitment agencies
      5. National news paper
      6. Internal intranet
      7. Word of mouth
      8. Job service
      9. Education liaison
      • ......
                    About Selection
• Usually more than one method is used depending on:
   –   The type of job;
   –   The competence of the staff involved in the selection;
   –   Administrative aspects;
   –   Costs; and
   –   Time factors.
• Methods include: selection forms, CVs, tests
  (aptitude, intelligence, trainability, personality), group
  tests, interviews and assessment centres, work
                 Issues in Selection:
• Validity:
   – Does the method assess all relevant aspects of the job?
   – Does the method predict current and/or future
   – Validity is absolutely critical!

• Reliability:
   – Consistency of the method.
   – Is it free from random error?

• Use and interpretation of selection methods!!!
   – Is the decision criteria clear and systematically applied?
             Selection: Validity of Methods

Examples of         Assessment centre for          0.7
between             Structured interviews
selection           Ability tests                  0.6
methods and         Work sampling                  0.5
employee            Assessment centre for job
performance:        performance, Bio-data
                    Personality assessment         0.4
 *Ranges from 0
 (no correlation)
                    Unstructured interviews        0.3
 to 1 (certain
 prediction)        References, Interests, Years   0.1
                    of work experience
 (Bilbeam and
                    Graphology, Astrology, Age     0
 Corbridge, 2006)
             Selection: Interviews

• A social encounter: more than a selection device.
• Preferably structured than un-structured, experience-
  based than future-orientated.
• Improve validity and reliability by being aware of:
   – The halo and horn effects;
   – The bias towards preferring similar personality
     characteristics to your own; and
   – Positive and negative expectancy through access to
     candidate information (e.g. CV).
Selection: Interview Tips by Jack Welch, GE

 • Always look for integrity, intelligence and maturity.
 • 4-E and 1-P framework:

    – Energy: ability to ’go go go’, enthusiasm and
    – Energize others: ability to inspire other team
      members, good knowledge of business and strong
      persuasion skills
    – Edge: the knowledge to know when to stop assessing
      and courage to make tough yes-or-no -decisions.
    – Execute: the ability to get the job done.
    – Passion: authentic excitement about work, love to
      learn and grow, juice for life in the veins!
        Selection: Assessment Centres
• Multiple raters evaluate applicants’/employees’
  performance on a number of exercises, e.g.
   – solving a particular task in a team, interviews, individual tests
• Used by 65% of large firms in UK
• High level of predictive validity
• Often somewhat limited construct validity
• Viewed as fair and thorough by candidates
• Recommendations:
   – Ensure that assessors are trained
   – Use situational exercises, i.e. closely related with real job
   – Use systematic observation by both experts on assessments
     (often consultants/psychologists) and the focal jobs
      Selection: Cognitive Ability Tests
• Include those measuring general intelligence / ability
  and those measuring specific abilities / aptitudes

• Three dominant facets:
   – Verbal comprehension: ability to understand and
     use written and spoken language.
   – Numerical ability: speed and accuracy with which
     one can solve artithmetic problems of all kinds.
   – Reasoning ability: inventing solutions to diverse

• Moderate to high validity in particular for complex
 Selection: The Big Five Personality Test

                               + Plus                   - Minus
High extraversion     Happier, fun, better       Impulsive, risky
                      performance                behaviours
High agreeableness Slightly happier, do          Too trusting,
                   generally better              perceived passive,
High                  Reliable, take less risks, Less creative and
conscientiousness     performance- orientated innovative
High                  Happier, more satisfied,   Nervousness
emotional stability   less stressed              sometimes beneficial
High openness to      Creative, adaptable,       In some occupations,
experience            easy-going                 convervatism
         Selection: Biographical Data

• Captures past behavior and performance as a
  predictor of future behavior;
• “More of the same” is a rather stable predictor;….
• But be aware of:

   – References: Are past/current superiors, etc. really
     providing ’objective’ information about the applicant?
     Lack of variance?
   – Data provided by the applicants: Is the person
     lying/distorting facts?
   – Written documents: How do you know that they are
Remember to Submit Your Application!
  Selection as a Social Process
Recruitment and selection procedures
constitute the initial episodes in the
developing relationship between individual
and organization. (…) Social psychology then
becomes a means of understanding the
nature and development of this relationship,
rather than the analysis of intrusive
interpersonal behavior.”

                       (Herriot 1989: 171)
         Selection as a Social Process

• Sharing realistic information;
• Creating commitment and involvement through
  mutual exploration and joint decision-making;
• Focus also on cultural match; and
• Increases the likelihood of self-selection…

            Creation of a positive and mutual
            psychological contract between the
            employee and the employer!
 Selection Decision is Not the End...

”If you want to keep staff then you have to look after
them. That is why we try to create a campus like
atmosphere at our office. We have top quality gourmet
food available and in the evenings we run cookery
classes. You also get Waitrose Direct, a grocery
shopping service – who wants to waste their spare time
by pushing a supermarket trolley? Every morning
workers are offered free fruit with breakfast.”

                  HRM manager, a British IT firm

• Recruitment and selection involve increasingly
  employer branding;
• Recruitment and selection are two-way
• Recruitment and selection are both scientific and
  social processes;
• Select carefully the best method for selection
  and selection decision-making!
                       THANK YOU!

Photo: Andreas Diehl

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