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Chapter 6 Recruitment

Question1
How to Make Recruiting More Effective?

Question2

What do you think about employee referrals?  What are the drawbacks and advantages you perceive with this practice?

Question3

What are the pros and cons of using temporary or leased employees rather than hiring permanent employees?

Written Assignment: Design a Recruitment Plan:

Your organization, Health Source, Inc., owns four large drugstores in Houston, Texas, and will open two more stores in the next year. One of the new stores will be located in suburban Houston, and the other will represent your first venture into the Dallas market. Each store will require about twenty-five employees at the start, including five pharmacists, four cosmeticians, a manager, and assistant manager, and a number of clerks. 
How would you go about locating and recruiting the fifty employees needed for the new stores? How do the recruiting methods you considered compare with one another in terms of cost, and how effective do you think each will be? how long will the recruiting process take? Are there any possible legal or ethical ramifications to think about?
Written Assignment: Different Recruitment Methods

Your small home health care service company of about 50 workers has traditionally recruited employees using newspaper print advertisements. Applications have been decreasing from these ads, so you are looking for alternative ways to generate more applicant flow. The company president has requested that you, as HR manager, prepare an overview of how educational/academic and Internet recruitment efforts might improve the recruitment traffic. In the overview, present the pros and cons of these new methods and compare them to newspaper recruiting.
 

Chapter 7 Employee Selection

Question1
What role should personality testing play in selection for most jobs? 

Question2

Compare briefly the major types of employment interviews described in Chapter 7. Which type would you prefer to conduct? Why?

Question3

What issues might arise in the use of background checks in the selection process? 

Written Assignment: Preparing to Conduct an Interview

 Your job responsibilities have just expanded to include interviewing job applicants. The first interviews will take place in about ten days. Fortunately, there are up-to-date job descriptions available for the jobs for which you will be conducting interviews, Still, you feel a bit uncertain of exactly how to proceed. You decide to check the Internet for advice on how to conduct interviews. 
1. Locate resources that would be useful to you in learning how to conduct interviews.
2. Find and work through an interviewer training simulation online. 
3. Write a one-page report of what you have learned about how to conduct an effective job interview.

Written Assignment: How Should You Have Been Hired?
 Pick a job that you have held or the job you wish to obtain after graduation from your current course of study. 
1. Consider the knowledge, skills, abilities, and experience needed to perform that job. List the attributes you believe an employer should look for in hiring a new employee for that job.
2. Determine how you would go about measuring these attributes in an applicant. 
3. Suppose you have decided to use a structured interview. Write down situational and behavior description questions that would be useful in selecting employees for that job. 

Chapter 10 Performance Management

Question1

How to Avoid Performance Evaluation Errors?
Question 2

If you were an employee, would you want to be evaluated by traits, behavior, or results? Why? 

Question3

Discuss how you would go about diagnosing an employee’s performance problems. List several factors to consider. 

Written Assignment: Performance Management Systems
 Reflect upon your own experience with performance management systems – this could be paid or unpaid, or an internship/placementexperience. Were you given goals? If yes, what impact did this have on your ability to do your job? If not, what impact did this have? Did the environment help or hinder your motivation? Did the environment help or hinder your motivation? Specifically, what was it about the environment or your supervisor that caused your motivation to increase or decrease? What could the organization or your supervisor have done to help address this for, what did they do? 
If you do not have any of the experience listed above, research a company’s performance management systems, and compare its components and the organization’s practices with what we have learned in Chapter 10. How might the organization modify its performance management systems? What likely impact would that have on organizational performance?  

Recruiting High-Quality Talent

1

1

Learning Outcomes
Describe what is recruiting, outline the elements that are part of a strategic recruiting strategy
Describe the methods firms use to recruit externally and internally
List some of the ways firms can use to improve their recruiting and the metrics they use to do so
Explain why diverse recruitment are important to companies
2

2

What is recruiting?
Recruiting is the process by which organizations locate and attract individuals to fill job vacancies.
Recruiting connects companies to sources of employees; selection involves picking the best supplier of talent
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3

Do You Know?
Recruitment: True or False
1.____ It is estimated that replacing a full-time private-sector employee costs at least 25 percent of that employee’s total annual compensation.
Turnover Cost Calculation
2.____ When the economy in your area is down and there is significant unemployment, you may have to offer increased compensation or benefits incentives to attract quality applicants as you will be in stiff competition with other employers to attract qualified applicants.
3.____ The ADA requires accommodation by employers so that a disabled applicant has equal opportunity to apply for job openings, regardless of the nature of the accommodation.
4

The correct answers are: 1. T. 2. F. 3. F
The strength of the economy and labor market conditions will significantly affect your organization’s ability to attract and retain top-level employees. When the economy is strong with little unemployment, you may have to compete with other employers for a limited number of skilled employees. This may require increased compensation or benefit incentives to attract quality applicants. The reverse may be true in a soft economy with high levels of unemployment. The problem then is not a shortage of qualified applicants; instead, the problem is managing a huge number of applications that must be pared down to find a few potential good hires.
4

Do You Know? (continued)
4.____ Even though Internet recruiting may speed up the application process, it still requires trained HR staff to screen all applications and administer selection tests.
5.____ Many organizations use promotion from within as a motivation tool and a reward for good work or longevity with the organization.
6.____ Generally, the more technically specific the job, the broader the geographic area of recruitment.
5

The correct answers are: 4. T. 5. T. 6. T
5

Elements of a Recruiting Strategy
6

• What type of individuals should be targeted?
• Where can these people be found?
• When should the recruitment campaign begin?
• How can the targeted individuals best be reached?
• What recruitment message should be communicated?
• What type of recruiters should be used?
• What should be the nature of a site visit?
• What should a job offer entail?
6

Assigning Responsibility
for Recruiting
Recruiting by employer or outsourced
Recruitment process outsourcing (RPO)
Streamlines hiring and reduces costs
Professional employer organizations (PEOs) and employee leasing
Employee leasing: Employer signs an agreement with the PEO
Staff is hired by PEO and leased to employer
Leasing firm pays wages, pays taxes, and handles HRM
7

Employment Branding
Employment brand: Distinct image of the organization that captures the essence of the company to engage employees and outsiders
Attracting Top Talent with a Strong Employer Brand
Employer of choice
Receive more applicants
8

Employer of choice
: Desirable places to work because of employee engagement, satisfaction, pay, benefits, schedules, social responsibility, etc.
8

Combination of Core and Flexible Workers
Core workers: Employees that are foundational to the business
They work year-round
Flexible Workers: Employees that are hired on an “as needed” basis
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9

Independent Contractors
Independent contractors: Workers who perform specific services on a contract basis
Independent contractors vs regular employees:
Behavioral: Does the company control or have the right to control how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer?
Type of Relationship: Are there written contracts or employee type benefits?
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Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
10

Advantages and Disadvantages of Using Flexible Staffing Alternatives
11

Recruiting and Equal Employment Opportunity
Equal employment opportunity (EEO) considerations:
Employer must reduce underrepresentation of protected-class members
Interviews, ads, and company materials should show diversity
12

Equal employment opportunity (EEO) considerations:
EEO laws and regulations
EEOC guidelines
Employer must reduce underrepresentation of protected-class members
Interviews, ads, and company materials should show diversity
Diversity in employment brand increases applicants
advertisements should contain wording about being an equal opportunity employer, or even more specific designations such as EEO/M-F/AA/ADA.
Bilingual Job Requirement Not DiscriminatoryAndy, who is only fluent in English, applies for a custodial supervisor position with a school district in Texas. The job description states that a preferred qualification is that candidates speak fluently in Spanish and English in order to communicate effectively with the custodial staff, many of whom speak only English or only Spanish. During Andy’s job interview with a school district representative, Andy acknowledges that he does not speak Spanish. The school district does not hire Andy because he is not fluent in Spanish and English. Instead, the school district promotes Anne, a Hispanic woman who was employed as a custodial foreman for the school district, to the custodial supervisor position. Anne is fluent in both English and Spanish. The school district representative suggests to Andy that he should apply for a different custodial position that does not require fluency in Spanish. Under these circumstances, the school district’s preference for a bilingual supervisory employee would not support a Title VII discrimination claim based on race or national origin by the non-bilingual applicant.[
12

Recruiting Diversity
Nontraditional labor pools:
Persons with different racial/ethnic backgrounds
Workers over 40 years of age, retirees
Workers with disabilities
Gender-Neutral Recruiting
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Are they Biased Phrasing? Neutral Wording
Who thrive in a competitive atmosphere… Who are motivated by high goals
Nurture and connect with customers Provide great customer service
We’re looking for strong… We are looking for exceptional…
Have a polite and pleasant style… Are professional and courteous…

Nontraditional labor pools:
Persons with different racial/ethnic backgrounds
Workers over 40 years of age, retirees
Single parents
Workers with disabilities
Welfare-to-work workers
Long-term unemployed
Gender-Neutral Recruiting
Gender-balanced adjectives in recruiting ads are encouraged
Generational Differences in Recruiting
Baby boomers prefer traditional postings
Generation X prefers work-life balance programs
Generation Y prefers technology, meaningful work, and opportunity to contribute to policies and arrangements
Recruiting should consider reaching all generations
13

Developing a Diverse Talent Pool
Recruiting and developing women
Why we have too few women leaders | Sheryl Sandberg
Recruiting and developing minorities
Advancing minorities to management
14

Developing a Diverse Talent Pool (continued 1)
Recruiting the disabled
The Ability Factor: Employing people with disabilities makes good business sense
Recruiting veterans
The value of veterans

15

https://www.military.com/hiring-veterans/resources/how-to-recruit-veterans-for-your-business.html
Individuals with disabilities is another group employers should consider recruiting. Individuals with disabilities often have a harder time finding a job, so they frequently are easier to hire.51 More importantly, employers like Giant Food, Citizens Energy Group and Starbucks have found that individuals with disabilities often make superior employees. For example, Walgreens found that individuals with disabilities who worked in its distribution centers performed their jobs as well as or better than other workers and that their absenteeism rate was approximately 30 percent lower.52 In terms of the cost of accommodations, the Job Accommodation Network found that for 60 percent of those hired, there was no financial cost to employers. For individuals who do require an accommodation, the cost is typically less than $600.
https://askjan.org/Erguide/Three.htm#D2

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Developing a Diverse Talent Pool (continued 2)
Recruiting older employees
Over 50 and Out of Work
Staff part-time and full-time positions that are otherwise hard to fill
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Targeting seniors Older individuals are often overlooked as a source for recruits, and this is a mistake. Home Depot specifically targets retired contractors and craftsmen for recruitment because of their expert home improvement knowledge. In a similar way, H&R Block recruits retired accountants to work during tax season.47 In addition to having desirable job related knowledge to share, older workers also offer the advantages of being willing to work part time and not needing health insurance if they qualify for Medicare. Some employers have found that even for those older workers who do not qualify for Medicare, the higher health care costs are offset by lower rates of absenteeism and turnover.48 Employers recruiting older workers should carefully consider how to bring job openings to their attention. Although online sites geared to seniors such as YourEncore.com exist, they may not be the best option. Instead, organizations might consider partnering with AARP or other senior-oriented groups, visiting seniororiented community centers, or posting job notices in retirement communities.
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Developing a Diverse Talent Pool (continued 3)
Recruit individuals with criminal record
Pre-Employment Inquiries and Arrest & Conviction

17

Proving that an exclusion is “job related and consistent with business necessity” is not burdensome.  The employer can make this showing if, in screening applicants for criminal conduct, it (1) considers at least the nature of the crime, the time elapsed since the criminal conduct occurred, and the nature of the specific job in question, and (2) gives an applicant who is excluded by the screen the opportunity to show why he should not be excluded.
https://www.shrm.org/hr-today/news/hr-magazine/1016/pages/hiring-job-seekers-with-criminal-histories.aspx
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Understanding Labor Markets
Labor force population: All individuals who are available for selection if all possible recruitment strategies are used
Applicant population: Subset of the labor force population that is available for selection using a particular recruiting approach
Applicant pool: The total number of people who have applied for an open position
18

Labor markets: Supply pool from which employers attract employees
Elements of the labor market:
The applicant population can also be understood as the number of people who have applied for any job opportunity. 
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Recruiting Source Choices: Internal versus External
Internal recruitment: Promoting from within the organization
External recruitment: Hiring from outside the organization
19

Possible strategy for organizations that face rapidly changing competitive environments and conditions:
Promote from within if a qualified applicant exists
Go to external sources if not
19

Internal Recruiting Sources
Organizational Databases
Internal job posting
Company intranet
Employee referrals
Rerecruiting former employees and applicants
20

Organizational Databases
Information on existing employees like knowledge, skills, and abilities (KSA) are entered into a database
Employee data sorted by occupational fields, education, areas of career interests, previous work histories, and other variables
These databases can be linked to HR activities
Job posting is the process of announcing job openings to all employees. Some organizations have developed computerized versions of job announcements that are sent out as e-mails to all employees and some publish employment newsletters or flyers. The announcement should contain information about the position, the required qualifications and instructions for applying.
The important issue in job posting is that the job announcement is made available to all employees. Adequate job posting can ensure that minority workers and other disadvantaged groups are aware of opportunities within the organization. HR must ensure that all employees have an equitable opportunity to apply for the jobs that are available. Employee cynicism can occur when jobs are posted but the organization has already selected a strong internal candidate for the position. Such practices create resentment and mistrust among employees when they believe the job posting is just a formality with little real opportunity for advancement.
Employee Referrals: Current employees can play an important role in recruiting new employees and some organizations pay a bonus to employees for successful referrals. There is a downside to extensive use of employee referrals. The EEOC compliance manual issued in 2006 updated guidance on the prohibition of discrimination under Title VII of the Civil Rights Act of 1964. The manual clearly warns that relying on word-of-mouth recruiting may generate applicant pools that do not reflect the diversity of the labor market. Therefore, it would seem prudent to use employee referral sparingly.

20

Pros and Cons of Internal Recruiting
21

External Recruiting Methods
Media Sources
Newspapers, magazines, television, radio
Internet media sources such as postings, ads, videos, and webinars are also used

22

22

External Recruiting Methods (continued 1)
Employment Agencies
State-sponsored: Operate branch offices in cities and do not charge fees to applicants or employers
Private: Operate in most cities
Charge a fee collected from employee or employer
Headhunters: Employment agencies that focus their efforts on executive, managerial, and professional positions
23

Contingency firms charge a fee after a candidate is hired
Retainer firms charge a set fee whether or not the contracted search is successful
23

External Recruiting Methods (continued 2)
Labor Unions
Job Fairs
Bring employers and potential job candidates together
Educational Institutions
Competitive Recruiting Sources
Professional and trade associations, trade publications, and competitors
24

Advantages and Disadvantages of External Recruiting
25

Technology for Recruiting
Social Media and Networking
Particularly helpful for finding passive job candidates
Passive job candidates: Qualified individuals who aren’t actively looking for work but might be interested if the right job comes along
26

LinkedIn—a professional social networking site
Twitter—social networking site
26

Technology for Recruiting
Web-Based Recruiting
E-Video: Recruitment videos, video interviewing
Gamification: Using game thinking and software to engage people in solving problems
Example: Behind The Code
27

Web-Based Recruiting
Internet job boards
Professional/Career websites
Employer websites
27

Evaluating Recruiting Efforts
Evaluating recruiting quality and quantity
Evaluating recruiting satisfaction
Evaluating the time required to fill openings
Evaluating the cost of recruiting
28

Recruiting metrics
Helps understand which recruiting sources work best for different employees
Can be used to see whether sufficient numbers of targeted population groups are being attracted
For example, one area of concern in recruiting might be protected category
persons. In Chicago, a network-based recruiting firm received only 16 black
and 4 Hispanic applicants out of 276 persons for a customer service job.
Yet Chicago has 37% blacks and 26% Hispanics in its population. Clearly,
the efforts to increase recruiting in these racial/ethnic groups needed major
attention.63
28

Recruitment Metrics
Time-to-fill
Metric that refers to the number of days from when a job opening is approved to the date a person is chosen for the job
Quality-of-fill
Metric that measures how well new hires are performing, and their retention levels
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Time-to-fill
Lower time-to-fill statistics are better
Trade-off has to be made between the time to fill a position and the quality of the candidates needed for the position
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**Recruitment Metrics (Cont.)
Yield ratio
Compare the number of applicants at one stage of the recruiting process with the number at the next stage
Yield ratio =

For instance:
30

Used to determine how many total applicants a firm needs to attract and advance to different stages in the hiring process to fill different jobs
30

Sample Recruiting Evaluation Pyramid
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Recruitment Metrics (continued)
Selection Rate
Percentage hired from a given group of candidates
Acceptance rate
Percentage of applicants who accept a firm’s jobs after being offered them
Cost of recruitment =

32

Acceptance rate: Percentage of applicants who accept a firm’s jobs after being offered them
Lower acceptance rates will require a firm and its HR personnel to determine why employees are declining offers
Applicant tracking system (ATS): Software application recruiters use to post job openings, screen résumés and up-loaded profiles, contact via e-mail potential candidates for interviews, and track the time, costs, and other metrics related to hiring people
32

How to Make Recruiting More Effective?
33

33

Increasing Recruiting Effectiveness
Effective recruiting activities:
Résumé mining
Applicant tracking
Employer career website
Internal mobility system
Realistic job previews
Timely responses
34

Increasing Recruiting Effectiveness (continued)
Recruiting effectiveness can be improved by using evaluation data to:
Target different applicant pools
Tap broader labor markets
Change recruiting methods
Improve internal handling and interviewing of applicants
Train recruiters and managers

35

What to Include in an Effective Recruiting Ad
36

36

Employee Selection

1

Learning Outcomes
Explain two important qualities of selection predictors—reliability and validity
Discuss the steps of a typical selection process
Compare the value of different types of employment tests
Contrast several types of selection interviews and some key considerations in conducting these interviews
Specify how legal concerns affect background investigations of applicants and use of medical examinations in the selection process

2

2

Selection
Process of choosing individuals who have relevant qualifications to fill existing or projected job openings
“Hire hard, manage easy.”
“Good training will not make up for bad selection.”
3

Selection, Criteria, and Predictors
Best predictor of future behavior is past behavior
Selection criterion: Characteristic that a person must possess to successfully perform job duties
Predictors of selection criteria: Measurable or visible indicators of selection criteria

Job Performance, Selection Criteria, and Predictors

*Reliability and Validity
Reliability: Extent to which a test or measure repeatedly produces the same results over time
Validity: Extent to which a test measures what it claims to measure

6

Selection tests should be validated to ensure that they measure the knowledge or skills that an applicant would need to perform the job.
6

Reliability and Validity (continued)
Establishing criterion-related validity
Concurrent validity: Measured when an employer tests current employees and correlates the scores with their performance ratings
Predictive validity: Measured when applicants’ test results are compared with subsequent job performance

Concurrent and
Predictive Validity

Correlation Scatterplots
9
What Is Correlation?

9

Legal Considerations in Selection Process
Concepts and practices that companies must follow
Job-relatedness: Qualification or requirement in selection is significantly related to successful performance of job duties
Business necessity: Practice that is necessary for safe and efficient operations
10

Case: Gordon Food Service
Michigan-based Gordon Food Service administered a strength test using isokinetic testing technology and equipment to measure upper and lower body resistance. The test was intended to gauge an applicant’s ability to handle the physical demands of the job and determine the applicant’s risk of injury, according to the settlement.
Office of Federal Contract Compliance Programs investigators found that the test had a statistically significant adverse impact on female applicants, resulting in the hiring of only six females over a period when nearly 300 males were hired.
Moreover the test was “more stringent than the actual job requirements at Gordon Food,” and was not validated.
Gordon Food Service agreed to pay $1.85 million in back wages and benefits to 926 women, hire 37 of the female applicants, and stop using the strength test.
11

job-related and consistent with business necessity
“Too often we find tests like the one used in this case that exclude workers from jobs that they can in fact perform,” said Patricia Shiu, director of the OFCCP, in a press release. The agency stated that the test was “more stringent than the actual job requirements at Gordon Food,” and was not validated.
Gordon Food Service agreed to pay $1.85 million in back wages and benefits to 926 women, hire 37 of the female applicants, and stop using the strength test. The company, which provides products to the U.S. Departments of Defense and Agriculture and to the Federal Prison System, did not admit liability.

11

EEOC
v. Dial Corp.
Women were disproportionately rejected for entry-level production jobs because of a strength test. The test had a significant adverse impact on women – prior to the use of the test, 46% of hires were women; after use of the test, only 15% of hires were women.
Dial defended the test by noting that it looked like the job and use of the test had resulted in fewer injuries to hired workers. The EEOC established through expert testimony, however, that the test was considerably more difficult than the job and that the reduction in injuries occurred two years before the test was implemented, most likely due to improved training and better job rotation procedures.
On appeal, the Eighth Circuit upheld the trial court’s finding that Dial’s use of the test violated Title VII under the disparate impact theory of discrimination.
12

PRE-EMPLOYMENT TEST BY DIAL CORP. DISCRIMINATES AGAINST WOMEN, COURT RULES IN EEOC CASE https://www.eeoc.gov/eeoc/newsroom/release/2-8-05.cfm
12

Selection Process Flowchart
13

Your Guide to Applicant Tracking Systems https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/ats-table.aspx

13

Application Forms
Application forms:
Basis for prescreening information
Are these questions found on application forms legal?
Marital status
Height/weight
Number and ages of dependents
Information on spouse
Date of high school graduation
Emergency contact information
Social Security number
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Record of the applicant’s desire to obtain a position
Applicant profile for the interviewer
Basic employee record for applicants hired
Research on the effectiveness of the selection process
Formal document on which applicant attests to truthful information
At-will employment: Indicates the right of the employer or the employee to terminate employment at any time with or without notice or cause (where applicable by state law)
Reference contacts: Requests permission to contact previous employers listed by the applicant on the application form or résumé
Employment testing: Notifies applicants of required drug tests, pencil-and-paper tests, physical exams, or electronic or other tests that will be used in the employment decision
Application time limit: Indicates how long application forms are active (typically six months) and that individuals must reapply or reactivate their applications after that period
Information falsification: Conveys to an applicant that falsification of application information can be grounds for serious reprimand or termination
Résumés as Applications
EEOC standards require that a résumé is treated as an application form
Application forms are better because the same information is furnished by all applicants
Résumés may embellish or omit negative information
 If an applicant voluntarily furnishes some information on a résumé that cannot be legally obtained, the employer should not use that information during the selection process. Some employers require those who submit résumés to complete an application form as well so that there is consistent information on every applicant and appropriate comparisons can be made.

14

Ban-the-box Laws
The “box” refers to the question on job applications that asks applicants whether or not they have ever been convicted of a crime.
Ban-the-box does not mean there can never be a criminal background check
15

However, most ban-the-box legislation places other restrictions and other requirements on employers. For instance, some states prohibit employers from inquiring about arrests, dismissed history, sealed records, or history in a diversion program. Some ban-the-box laws restrict employers from inquiring about criminal history until after the first interview or until a conditional offer of employment is made. Some jurisdictions require employers to consider other factors, such as, time-related restrictions or whether the criminal history is job-related.
https://www.backgroundchecks.com/banthebox
15

Ban the Box Laws in California
16
For a full list, please see Ban the Box Laws by State and Municipality from SHRM

Pre-employment Screening
Employers screen to determine if individuals meet minimum qualifications
Electronic assessment screening: Software used to review résumés and application forms received
Disqualification questions to understand individual KSAs
Assessment tests
Background, drug, and financial screening
Social network screening—controversial
17

Electronic assessment screening: Software used to review résumés and application forms received
Disqualification questions to understand individual KSAs
Assessment tests and background, drug, and financial screening
Social network screening—controversial
A controversial trend is screening candidates based on information obtained from their social networking profiles. Doing so can have negative consequences for applicants and companies. The legality and appropriateness of such screening is highly questionable because most managers simply access available information without consistency or regard to job demands. The information found on Facebook or other online platforms can lead to discrimination against applicants due to their religion or sexual orientation. Although it may be tempting to just click on an applicant’s profile, top candidates may develop a negative opinion of the organization or, even worse, take legal action if they are not hired because of the information found on social networking sites. Companies must walk a fine line and realize that random, haphazard screening in this manner is likely to attract attention from lawmakers who will no doubt restrict the practice if it becomes too prevalent.
17

Types of Tests
Sample Work Sample Tests
Clerical
■ Typing test.
■ Proofreading.
18

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Job knowledge tests

Designed to measure people’s level of understanding about a particular job

Work sample tests

Require an applicant to perform a simulated task that is a specified part of the target job

Psychomotor tests

Measure dexterity, hand–eye coordination, arm–hand steadiness, and other factors

Types of Tests
19

Reduces the frequency of lying and theft
on the job
Communicates to applicants that dishonesty will not be tolerated
The polygraph, more generally and incorrectly referred to as the
“lie detector,” is a mechanical device that measures a person’s galvanic skin
response, heart rate, and breathing rate.
Congress passed the Employee Polygraph Protection Act, which prohibits the use of
polygraphs for preemployment screening purposes by most
employers.
Federal, state, and local government agencies
are exempt from the act. Also exempted are certain private sector
employers such as security companies and pharmaceutical
companies.
The act does allow employers to use
polygraphs as part of internal investigations of thefts or
losses. But in those situations, the polygraph test should be
taken voluntarily, and the employee should be allowed to
end the test at any time.
19

Cognitive ability tests

Measure an individual’s thinking, memory, reasoning, verbal, and mathematical abilities

Physical ability tests

Tests that measure an individual’s abilities such as strength, endurance, and muscular movement.

Types of Tests
Legal experts recommend that employers order such tests only after making a contingent offer of employment.
10
The Employee Polygraph Protection Act of 1988 prohibits employers from requiring or requesting pre-employment polygraphs under most circumstances.
Federal, state, and local government agencies are exempt from the act.

The Drug-Free Workplace Act of 1988 (41 U.S.C. 81) is an act of the United States which requires some federal contractors and all federal grantees to agree that they will provide drug-free workplaces as a precondition of receiving a contract or grant from a Federal agency.
20

Medical examinations

Ensure the health of an applicant is adequate to meet the job requirements

Drug tests

Right of an employer in accordance with Drug-Free Workplace Act of 1988

Polygraph tests (Lie detector)

Provides a diagnostic opinion about a candidate’s honesty, but their validity has been called into question

21

Personality Tests
Personality: Unique blend of individual characteristics that can affect how people interact with their work environment
Accepted approach: The “Big Five” personality framework
Free Personality Tests
Potential issues

Faking
Discrimination against individuals with disabilities
22

Big Five Personality Characteristics

Emotional Intelligence Tests
Emotional intelligence: Ability to recognize and manage our own feelings and the feelings of others
Soft skills are critical for establishing good working relationships

Leaders with high emotional intelligence tend to be more creative and perform better on the job
More effective in teams and handle stress better
24

Interview
Purposes
To obtain information about candidates
To provide information and reinforce the employer brand

In-depth selection
interview
Initial screening
interview

Assessing the qualifications of applicants
25

Comparison of Structured and Unstructured Selection Interviews
Structured
Preplanned job-specific questions
Consistent questions for all candidates
Established scoring key
Trained interviewers
Acceptable reliability and validity
Unstructured
Ad lib generic questions
Different questions for each candidate
No established scoring key
Untrained interviewers
Low reliability and validity
26

Ad libitum is Latin for “at one’s pleasure” or “as you desire”; it is often shortened to “ad lib” or “ad-lib”. The roughly synonymous phrase a bene placito is less common but, in its Italian form a piacere, entered the musical lingua franca. Wikipedia

26

Types of Structured Interviews
Situational interview: Questions about how applicants might handle specific job situations
Behavioral interview: Applicants give specific examples of how they have performed a certain task
Example: “Tell me about a time when you initiated a project. What was the situation? What did you do? What were the results?”
Interview and Resume Tips from Starbucks

27

A recent study showed that “past behavior”
interviews are better at identifying achievement at work than are situational
interviews, because they focus on what applicants have actually done in real
situations rather than on what they think they might do in hypothetical situations.
33 An example of a behavioral interview line of questioning might be:
“Tell me about a time when you initiated a project. What was the situation?
What did you do? What were the results?”
27

Less-Structured Interviews
Unstructured interview
Interviewer improvises by asking questions that are not predetermined
Semistructured interview
Guided conversation in which broad questions are asked and new questions arise as a result of discussion
Group interview
28

Nondirective interview
Uses questions developed from the answers to previous questions
im·pro·vise
/ˈimprəˌvīz/
Learn to pronounce
verb
3rd person present: improvises
create and perform (music, drama, or verse) spontaneously or without preparation.
“he was improvising to a backing of guitar chords”
synonyms:extemporize, ad lib, speak impromptu, make it up as one goes along, think on one’s feet, take it as it comes; More
produce or make (something) from whatever is available.
“I improvised a costume for myself out of an old blue dress”
synonyms:contrive, devise, throw together, cobble together, concoct, rig, jury-rig, put together;More
28

Effective Interviewing
Interviewing skills are developed through training and practice
Suggestions
Plan the interview
Control the interview
Use effective questioning techniques
Get a balanced view
Ross being interviewed by his girlfriend’s boyfriend

Effective Interviewing: Questions to Avoid
Illegal questions
Questions that are not job related
Yes/no questions
Obvious questions
Questions that rarely produce a true answer
Leading questions
30

Yes/no questions: Unless verifying specific information, the interviewer should avoid questions that can be answered “yes” or “no.” For example, “Did you have good attendance on your last job?” will probably be answered simply “yes.”
• Obvious questions: An obvious question is one for which the interviewer already has the answer and the applicant knows it.
• Questions that rarely produce a true answer: Avoid questions that prompt a less-than-honest response. An example is “How did you get along with your coworkers?” The likely answer is “Just fine.”
• Leading questions: A leading question is one to which the answer is obvious from the way the question is asked. For example, “How do you like working with other people?” suggests the answer “I like it.”
• Illegal questions: Questions that involve information such as race, age, gender, national origin, marital status, and number of children are illegal. They are just as inappropriate in the interview as on the application form.
• Questions that are not job related: All questions should be directly job related.
30

Questions
Commonly
Asked in
Selection
Interviews

Background Investigations
Information can be obtained from:
Past job records
Testing records
Educational and certification records
Drug tests
Criminal history
Sex offender lists
Motor vehicle records
Credit history
32

Background Investigations (continued 1)
Negligent hiring: Occurs when an employer fails to check an employee’s background and the employee injures someone on the job.
Negligent retention: Occurs when an employer becomes aware that an employee may be unfit for work but continues to employ the person, and the person injures someone

33

Question: How would you conduct a complete background investigation on applicants for the job of school bus driver to minimize concerns about negligent hiring?
33

Background Investigations (continued 2)
Employers that check applicants’ credit records must comply with federal laws
Employers must make sure that checks are performed consistently and fairly across different employees

34

Companies should obtain a signed release from the applicant
The FCRA applies anytime an employer obtains a background check for employment purposes from a third party. These reports could include criminal history, employment and education verifications, motor vehicle reports, health care sanctions and professional licenses. It is important to note that while the word “credit” appears in the name of the law, it applies to background reports regardless of whether or not the report includes credit information.
Employers must make sure they disclose that they are going to conduct a background check and get written authorization. 
34

Background Investigations (continued 3)
Fair Credit Reporting Act requires:
Disclosing that a credit check is being conducted
Obtaining written consent from the person being checked
Furnishing the applicant with a copy of the report
Credit checks should be for jobs in which use of, access to, or management of money is an essential job function

35

Medical Examinations
and Inquiries
Used to determine the physical and mental abilities to perform jobs
ADA prohibits:
Using pre-employment medical exams, except for drug tests, until a job has been conditionally offered
Rejecting an individual because of a disability
Asking job applicants any question related to current or past medical history until a conditional job offer has been made
36

Medical Examinations
and Inquiries (continued)
Drug testing – Accuracy of tests varies according to the type of test used and the quality of the laboratory where the test samples are sent
Safety-sensitive jobs may require more stringent screening
37

Summarizing Information about Applicants
38

Approaches for
Combining Predictors
Compensatory Approach
Scores from individual predictors are added and combined into an overall score
Allows a higher score on one predictor to offset, or compensate for, a lower score on another
39

Approaches for
Combining Predictors (Continued)
Multiple hurdles model:
Minimum cutoff is set on each predictor
Each minimum level must be passed
40

Making the Job Offer
General process
Offer given over the telephone
Formalized letter is then sent to the applicant
Offer document should be reviewed by legal counsel
Terms and conditions of employment should be clearly identified
41

Making the Job Offer (continued)
Selected candidate should:
Sign an acceptance of the offer
Return the signed acceptance to the employer
Employer should place the job offer in the candidate’s personnel file

Selection Tests
The Uniform Guidelines on Employee Selection Procedures of 1978: 4/5ths rule

43

Selection tests must be evaluated extensively before being utilized for hiring decisions. The development of test items should be linked to a thorough job analysis, which is covered in Chapter 4. Also, initial review of the items should include an evaluation by knowledge experts, and statistical and validity assessments of the items should be conducted.
Pre-employment testing is a selection tool that can provide valuable information to aid the selection process.
Pre-employment tests can add objectivity to the selection process if applicants for the same position take the same test under the same conditions and if the test accurately measures skills essential to job performance.
If the use of a particular selection procedure results in adverse impact, the employer can eliminate the use of the procedure, thus eliminating the adverse impact. Or, if the employer wishes to continue to use the procedure, it must then demonstrate the “business necessity” of the selection procedure– that is, demonstrate a clear relationship between the selection procedure and performance of the job. This process is known as validation.
Validation as used in personnel psychology is the establishment of a clear relationship between a selection procedure and the requirements of successful job performance. The Uniform Guidelines recognize three aspects of validity: content validity, criterion validity, and construct validity. The Uniform Guidelines outline technical standards and documentation requirements to justify each of these three aspects of validity.
43

Title VII and Cognitive Tests: Less Discriminatory Alternative for Cognitive Test with Disparate Impact. 
EEOC v. Ford Motor Co. and United Automobile Workers of America, involved a court-approved settlement agreement on behalf of a nationwide class of African Americans who were rejected for an apprenticeship program after taking a cognitive test known as the Apprenticeship Training Selection System (ATSS). The ATSS was a written cognitive test that measured verbal, numerical, and spatial reasoning in order to evaluate mechanical aptitude.
44

Title VII and Cognitive Tests (Continued 1)
Although it had been validated in 1991, the ATSS continued to have a statistically significant disparate impact by excluding African American applicants. Less discriminatory selection procedures were subsequently developed that would have served Ford’s needs, but Ford did not modify its procedures.
45

Title VII and Cognitive Tests (Continued 2)
In the settlement agreement, Ford agreed to replace the ATSS with a selection procedure, to be designed by a jointly-selected industrial psychologist, that would predict job success and reduce adverse impact. Additionally, Ford paid $8.55 million in monetary relief.
46

Performance Management

1

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Learning Outcomes
Identify why performance management is necessary
Describe the advantages and disadvantages of using various sources of performance rating
Discuss the differences between rating, ranking, and goal-setting methods of appraisal
Identify several errors often committed by raters

2

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2

Performance Management Systems
Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organization’s effectiveness.
Performance appraisal: Process of determining how well employees do their jobs relative to a standard and communicating that information to them
3

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A performance appraisal is a formal system of review and evaluation of individual or team performance.
Performance management has a broad organizational focus, whereas performance appraisals are the processes used to evaluate how employees perform their jobs and then communicate that information to employees.
Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organization’s effectiveness. It is strategic in nature and involves every person and all HR processes in the organization. All are directly tied to achieving the organization’s goals.
The performance appraisal is a periodic event to reflect and evaluate past performance with the intent to identify strengths and weaknesses of an employee’s performance and to identify developmental goals. A performance appraisal is just one part of a performance management system.
Key part of performance management is performance appraisal because it helps employees improve their job performance
3

Effective Performance Management System
Should do the following:
Clarify organizational expectations
Document performance for personnel records
Identify areas of success and needed development
Provide performance feedback to employees
4

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Performance Management Linkage

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Steps Related to Performance Management
Step 1: Identify performance dimensions
Step 2: Develop performance measures
Step 3: Evaluate performance
Step 4: Provide feedback
Step 5: Develop action plans to improve performance
6

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Evaluate

Feedback

Change

Plan

Step 1: Identify Performance Dimensions
Strategic plan
Job analysis
Example: What are the dimensions of a professor’s performance?
7

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Teaching

Research

Service

Identifying and Measuring Employee Performance
Common employee performance measures
Quality of output
Quantity of output/productivity
Timeliness of output/meeting deadlines
Punctuality and attendance
Efficiency of work completed
Effectiveness of work completed
Job duties: Important elements in a given job
Weights: Used to show the relative importance of different duties in a job

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Types of Performance Information
Trait-based information
Identifies a character trait of the employee
May or may not be job related
Less useful information than the other methods
Examples: Attitude, teamwork, initiative, creativity, values, and dispositions
Behavior-based information
Focuses on specific behaviors that lead to job success
Examples: Customer satisfaction, verbal persuasion, timeliness of response, citizenship/ethics, and effective communication

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Types of Performance Information (continued)
Results-based information
Considers employee accomplishments
Works well for jobs in which measurement is easy and obvious
More useful information than the other methods
Examples: Sales volume, cost reduction, units produced, and improved quality

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Types of
Performance
Information
11

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Trait approaches
Based on people’s specific traits in relation to the job
Behavioral approaches
Look at individual actions within a specific job
Results methods
Focuses on the measurable performance
11

Factors that Affect an Employee’s Performance

12

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Factors that Affect an Employee’s Performance (Cont.)
13

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Step 2: Develop Performance Measures
Performance measure must be reliable and valid
14

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Reliability refers to how well a measure yield consistent results over time and across raters
Validity is the extent to which you are measuring what you want to measure and how well that is done.
14

**Performance Measures Characteristics
15

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Calibration: Process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another
15

Reliability

Reliability refers to how well a measure yield consistent results over time and across raters

Validity

The extent to which the performance measures reflect the actual performance of your employees

Calibration: Process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another

Establishing Performance Measure
16

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Criterion deficiency: Important aspects of an individuals’ performance are not measured
Criterion contamination: When performance measure captures information that is irrelevant to an individuals’ job performance

16

Performance Standards
Define the expected levels of employee performance
Should be realistic, measurable, and clearly understood
Benefit both organizations and employees
Ensure that everyone involved knows the performance expectations

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Performance level: Superior
Demonstrated Ability
Visits table quickly after guests are seated
Takes order exactly when guests are ready
Serves drinks and food immediately after items are prepared
Clears table and presents check immediately after meal is complete
Performance level: Acceptable
Demonstrated Ability
Visits table in a reasonable time after guests are seated
Takes order in a timely manner
Serves drinks and food after items are prepared
Clears table and presents check after meal is complete
Performance level: Needs improvement
Demonstrated Ability
Visits table when there is time to do so
Takes order when ready
Serves drinks and food after other duties are completed
Clears tables and presents check after servicing other tables
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Step 3: Evaluate Performance
Comparative Methods
Ranking
Forced Distribution
Absolute Methods
Essay
Critical Incidents
Graphic Rating-scale Method
Behaviorally Anchored Rating Scale (BARS)
Behavioral Checklist
Management by Objective (MBO)
18

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18

Comparative Method
Ranking
Employees are evaluated from best to worst along some performance dimensions
19

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Drawbacks
Magnitude of the performance differences between employees is not clearly indicated
Ranking task becomes unwieldy if the group of employees to be ranked is large
Ranking means that someone must be last, which ignores the possibility that the last-ranked individual in one group might be equal to the top-ranked employee in a different group

19

Comparative Method
(Cont.)
Forces managers to identify high, average, and low performers, with a limited percentage permitted to earn each ranking level

20

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20

Absolute Performance Evaluation Approach – Essay Method
Requires the rater to write a statement describing employee behavior

21

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21

Absolute Performance Evaluation Approach – Critical Incident Method
Critical incident: exceptionally effective and ineffective behavior employees display
Manager keeps a written record of both favorable and unfavorable employee actions during the entire rating period
22

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Manager keeps a log or diary for each employee throughout the appraisal period
22

Absolute Performance Evaluation Approach – Graphic Rating-scale Method
Allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic
23

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Suitable for development purpose than the comparative approaches

Concerns
Evaluation criteria may not be representative of job performance elements
Reduces employees’ confidence in evaluation fairness and leads to more legal issues for firms
Traits or factors are often grouped, and the rater is given only one box to check
23

Absolute Performance Evaluation Approach – Behaviorally Anchored Rating Scale (BARS)
Specific examples of job behaviors are anchored or measured against a scale of performance levels
BARS are rating scales that add behavioral scale anchors to traditional rating scales (e.g., graphic rating scales).
24

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Behaviorally Anchored Rating Scale for Customer Service Skills
25

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Creating a BARS system
Identify important job dimensions
Write short statements of job behaviors (anchors)
Assign anchors to job dimensions
Set scales for anchors
25

Absolute Performance Evaluation Approach – Behavioral Checklist Method
Rater checks statements on a list that the rater believes are characteristic of the employee’s behavior
26

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A checklist developed for salespeople who sell electronic products might include a number of statements such as the following:
26

Absolute Performance Evaluation Approach – Management by Objectives (M B O)
Specific performance appraisal method that highlights the performance goals that an individual and manager identify together
Stages
Job review and agreement
Development of performance standards
Setting of objectives
Frequent performance discussions

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Combinations of Methods
No single appraisal method is best for all situations
Performance measurement system that uses a combination of methods may be sensible
Managers can work with H R staff to choose and mix methods to realize advantages of each approach

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Multisource Appraisal
29

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Determining who will provide evaluation input
Supervisors rating their employees
Employees rating their superiors
Team members rating each other
Employees rating themselves
Outside sources rating employees
30

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**Types of Rater Errors
Varying Standards
Recency and Primacy Effects
Central Tendency, Leniency, and Strictness Errors
Rater Bias
Halo and Horns Effects
Contrast Error
Similar-to-Me/Different-from-Me Errors
Sampling Error
31

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1) Varying standards – 
2) Recency effect – giving greater weight to recent events
3) Primacy Effect – giving greater weight to info received first.
4) Central tendency – gives everyone average
5) Leniency error – rates everyone highly
6) Strictness error – rates everyone low
7) Rater bias
8) Halo Effect – rates highly in all areas bc good performance in one
9) Horns effect – 1 bad characteristic leads to overall low rating
10) Contrast error – rate people against each other rather than against the performance standards
11) Similar / different to me – 
12) Sampling Error – rater only has a small sample of work
31

360-Degree Evaluation
Conducted by different people who interact with the employee on forms compiled into a single profile for use in the evaluation meeting
What are the pros and cons of 360-degree evaluation?
32

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Pros and Cons of 360-Degree Evaluation
33

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Companies should consider the following safeguards
Assure anonymity
Make respondents accountable
Prevent gaming of the system
Use statistical procedures
Identify and quantify biases
33

Step 4: Provide Appraisal Feedback
Appraisal Interview
Communicate employee’s positive contributions
Discuss to enable employee to identify their own deficiencies and develop improvement plans
34

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Reactions of Managers and Employees
Typically negative perceptions of appraisals
Avoidance of negative issues or biased ratings due to fear of having to confront or defend
Well-done appraisals often viewed as constructive
34

Appraisal Interview Hints for Appraisers
35

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Be direct and specific. Use examples to show where the employee has room for improvement and where the employee exceeds expectations, such as, “The expectation is zero accidents, and you have not had any accidents this year.”
2. Do not be personal; always compare the performance to the standard. For example, instead of saying, “You are too slow on the production line,” say, the “expectations are ten units per hour, and currently you are at eight units.”
3. Remember, it is a development opportunity. As a result, encourage the employee to talk. Understand what the employee feels he does well and what he thinks he needs to improve.
4. Thank the employee and avoid criticism. Instead of the interview being a list of things the employee doesn’t do well (which may give the feeling of criticizing), thank the employee for what the employee does well, and work on action plans together to fix anything the employee isn’t doing well. Think of it as a team effort to get the performance to the standard it needs to be.
35

Writing the Appraisal Review Document
Are your comments accurate and meaningful to the employee or just clichés?
You need to improve your productivity.
You get along well with others.
You’re not trying to do your best.
You have to prove yourself before I can give you any more responsibility.

36
From SHRM 2009

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Class activity: Ask students to rewrite the clichés (found in the instructor’s manual) and discuss their answers. Students could do this individually or in groups of two or three. Remind students of the importance of appraising behavior and not personality.
36

Step 5: Develop Action Plans to Improve Performance
Managing Ineffective Performance
Provide training to increase skills and abilities
Transfer employee to another job or department
Attention of actions to motivate employee
37

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Cautions
Actions taken must be objective and fair
Do not treat underperformer differently, setting the employee up to fail
37

Focus on Changing the Behavior, Not the Person
Supervisor has to separate the employee from the behavior
When required action is taken, it should be done:
Legally
Fairly
With an understanding of the feelings of the individual involved
38

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Way to communicate this to employees is to suggest more acceptable ways of performing
38

HR’s Role in Performance Management
Prerequisite stage
Participate in strategic planning.
Conduct job analysis.
Throughout the system
Design appraisal system.
Train and support managers.
Maintain documents.
Ensure compliance with nondiscrimination laws.
Ensure integrity of the system.
Advocate for all employees

39
From SHRM 2009

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HR plays a significant role in the performance management process, from the prerequisites and through the entire process. In the prerequisite stage, HR participates in goal setting during the strategic planning process, conducts job analyses and ensures that job analysis information is current. These are crucial steps in a successful performance management system.
Throughout the system, HR supports and trains managers in the skills necessary to execute their part of the process. HR designs and implements the performance review system and makes sure managers have the skills necessary to offer timely, unbiased employee ratings. It is HR’s responsibility to monitor the process to ensure there is documentation that accurately represents employee performance and can be used to make personnel decisions without fear of discrimination and litigation.
HR supports employees as well as the managers throughout the process by acting as an advocate for all employees. HR should establish a due process system for employees who do not agree with their performance ratings. HR acts as a sounding board for employees, allowing their issues to be heard and addressed. HR protects the integrity of the system by insisting on objective, timely reviews and addressing employee concerns with due process. In addition, HR maintains employee records and ensures employee privacy.
39

Legal Guidelines for Evaluations
Job-related
Written copy of their job standards
Raters should be able to observe the behavior
See if minority groups are being adversely impacted
Discussed openly
Appeals procedure
40

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Key Terms
behaviorally anchored rating scale
calibration
contrast error
critical incident
error of central tendency
essay method
forced distribution

41
management by objectives performance evaluation
performance management
recency error
similar-to-me error
360-degree evaluation
graphic rating scale method
leniency or strictness error

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41