CHAPTER 7 Selecting Employees to Fit the Job and the Organization
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Chapter 7
SELECTING EMPLOYEES TO FIT THE JOB AND THE
ORGANIZATION
Opening Case: Managing Human Resources at Procter and Gamble
Operating in over 180 countries, Cincinnati-based Procter & Gamble (P&G) is one of
the largest consumer products companies in the world. Its HRM philosophy is to “build
from within” which shapes many of their HR policies and practices, especially
recruiting, selection, and development. Nearly everyone (95 percent of their
employees) starts in an entry-level job and then progresses upward and moves around
in the organization. P&G believes that this provides great opportunities for employees
to grow, develop, and advance. Also, it creates a special camaraderie among all
individuals who have been with the company their entire careers. When P&G hires
someone, the person gets more than a job; he or she gets a chance at a career.
Needless to say, P&G’s selection process is important and, therefore, rigorous. Each
year, nearly a half-million people apply for jobs at P&G. Less than one percent of
applicants are hired. The best and most talented applicants are identified using a
selection process that measures intelligence, character, and leadership. These
qualities are what predict success at P&G. To ensure the right job candidates are
selected for entry-level jobs and later promotions, HR professionals work closely with
line business leaders. Both are involved at every step of recruiting, selection, and
development.
CHAPTER OUTLINE
I. THE STRATEGIC IMPORTANCE OF SELECTING EMPLOYEES TO FIT THE
JOB
Selection is the process of obtaining and using information about job applicants in
A. Obtaining a Capable Workforce
Different types of business strategies require different types of people to
implement them effectively. Selecting the best person improves productivity
and increases customer satisfaction. Effective selection also helps keep
employees motivated and aids in strategic implementation. It is important to
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B. Maximizing the Economic Utility of Selection Practices
The economic utility of an organization’s selection practices refers to the net
monetary value associated with it. It is essentially a measure of ROI.
1. Cost
The cost of selection decisions includes the value of all of the time and
resources used to collect information about job applicants that is used to
2. Value
The economic value of a single selection decision depends on the level of a
3. Calculating Utility
A variety of approaches for determining the utility of selection procedures
II. SELECTION WITHIN AN INTEGRATED HRM SYSTEM
Exhibit 7.2 illustrates how various selection practices function as part of a larger
integrated HR system. Effective recruiting is an important process that lays the
foundation for making selection decisions by generating a large pool of qualified
applicants.
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A. Other HR Activities
Fairness and legal compliance, job analysis and competency modeling, training
B. The External and Organizational Environment
As we have already noted, laws and regulations have important implications
for how employers select people to fill jobs. And the Cirent example illustrates
III. THE HR TRIAD
To achieve its strategic objectives, selection and placement must be congruent
with the internal and external environment. Involving line managers and other
employees helps ensure congruence. See The HR Triad: Roles and
Responsibilities in Selecting Applicants.
A. Line Managers
The involvement of line managers helps to ensure congruence between the
B. HR Professionals
HR professionals may be more directly involved in selection in smaller
organizations. They play more of a support role in larger organizations.
Specifically, HR professionals may gather information about applicants,
arrange interviews, administer selection tests, etc.
CHAPTER 7 Selecting Employees to Fit the Job and the Organization
C. Other Employees
IV. DESIGNING THE SELECTION PROCESS
The selection process generally involves making choices:
1. What are the criteria of interest?
A. Establish the Criteria of Interest
Criteria are the outcomes that selection decisions are intended to predict. Job
analysis and HR planning lead to an understanding of the specific tasks
required by a job and the surrounding organizational context. Relevant criteria
for selection and placement decisions can then be developed for guiding the
key decision makers.
B. Choose the Predictors and Assessment Techniques
The various pieces of information used to make selection decisions are referred
to as predictors.
1. Predictors
Predictors serve as the basis for estimating how likely applicants are to
perform well in a particular job, whether they will fit into the culture of the
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2. Assessment Techniques
3. Valid Predictors
Validity refers to the usefulness of a predictor correctly inferring the future
job behavior of job applicants. Three basic strategies are commonly used:
a. Content Validation
Most common form of validation. Using job analysis information, a
b. Criterion-Related Validation
c. Validity Generalization
Relatively new and gaining in acceptance. It assumes that the results of
criterion-related validation studies conducted in other companies can be
4. Reliable Predictors
An unreliable measure yields undependable, inconsistent results in different
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C. Decide When to Measure Each Predictor
D. Synthesize Information and Choose Appropriate Candidates
A large amount of information may be available at this final stage for each of a
large number of applicants. Some may be applying for more than one job
opening. Some of the information is quantifiable, some very “soft”. The
following approaches may be helpful in combining all this information to make a
selection decision.
1. Multiple-Hurdles
An applicant must exceed fixed levels of proficiency on all the predictors in
2. Compensatory
3. Combined
Some companies require specific requirements, e.g., passing a licensing or
V. TECHNIQUES FOR ASSESSING JOB APPLICANTS
A. Personal History Assessments
Based upon the assumption that past behavior is a predictor of future
1. Application Blank
Often serving as the initial employment document, the application blank
2. Biodata Test
These tests ask autobiographical questions about subjects that appear, at
B. Background Verification and Reference Checks
1. Background Verification
It is important to verify information presented by the applicant. A high
percentage of resumes contain misrepresentations of information. However,
2. Reference Checks
Reasons that employers must check references:
1. to weed out applicants who provide false information
C. Written Tests
1. Ability
Used in the U.S. and Europe since the turn of the 20th century, these tests
2. Knowledge
Knowledge tests are similar to ability tests, but they assess what a person
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3. Personality
These tests attempt to assess personality, the unique blend of
characteristics that define an individual and determine his/her pattern of
interactions with the environment. We now believe that most aspects of
personality can be captured using a few basic dimensions, often referred to
as the Big Five:
4. Integrity
Personal honesty and integrity are also increasingly coming under scrutiny
Teaching Note: Given the widely-reported scandals at companies such as Tyco
and WorldCom, should integrity tests be given to executives? Ask students the
pluses and minuses of giving these types of tests at this level.
D. Work Simulations
Also known as work sample tests, simulations require applicants to complete
E. Assessment Centers
Usually conducted off-premises for groups of potential candidates for high-level
CHAPTER 7 Selecting Employees to Fit the Job and the Organization
F. Interviews
The most frequently used selection tool, the interview may occur at both the
beginning of and during the selection process.
1. Structured Questions
All applicants are asked the same questions in the same order in the
2. Focus on Behavior
Structured and semi-structured job interviews usually focus on behavior.
There are two different approaches to asking behavioral interview questions.
3. Systematic Scoring
Raters should use the same scoring key to evaluate interviewee responses
4. Panel Interviewers
5. Interviewer Training
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G. Medical Tests
Not all employers require these, but their popularity is growing, despite fears of
invasion of privacy and possible discrimination.
1. General Health Examinations
Expensive and potentially discriminatory, health exams may be given after
Teaching Note: What is a “reasonable” accommodation? Create some
scenarios and discuss what an employer would reasonably have to do to
accommodate. Where is the line drawn?
2. Genetic Testing and Screening
Teaching Note: Discuss the ethical issues surrounding genetic screening.
Should there be a federal policy toward genetic testing?
3. Drug and Alcohol Testing
Due to the high cost to U.S. industry of drug and alcohol abuse, over 15
VI. THE PERSPECTIVE OF APPLICANTS
Applicants usually care deeply about the outcome of the selection decision and it
CHAPTER 7 Selecting Employees to Fit the Job and the Organization
A. Fair Content?
Applicants prefer a process that involves them in activities that have obvious
B. Fair Process?
C. Fair Results?
Various constituencies within and outside the organization form opinions about
VII. LEGAL CONSIDERATIONS IN SELECTING EMPLOYEES
Selection practices must be designed with legal regulations and social norms in
mind. These can vary from state to state and country to country.
A. Laws and Regulations That Prohibit Discrimination
Relevant acts and executive orders prohibiting employment discrimination against
employees and job applicants on the basis of personal characteristics include:
• Title VII of the Civil Rights Act