Strategic Forecasting & Acquisition in HRM: Prestige Institute of Management, Gwalior

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Prestige institute of management,

GWALIOR

STRATEGIC FORECASTING &


ACQUISITION IN

HRM
Human Resource Planning

Systematic process of matching


internal and external supply of
people with job openings
anticipated in the organization
over a specified period of time.
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning

Human Resource Planning

Forecasting Comparing Forecasting


Human Requirements Human
Resource Resource
Requirements and Availability Availability

Demand = Surplus of Shortage of


Supply Workers Workers

No Action Restricted Hiring, Recruitment


Reduced Hours, Early
Retirement, Layoffs, Selection
Downsizing
Definitions

 Requirements Forecast- Determining


number, skill, and location of
employees organization will need at
future dates in order to meet goals.
 Availability Forecast-Determination
of whether firm will be able to secure
employees with necessary skills, and
from what sources.
Forecasting Human Resource
Requirements
 Zero-based Forecasting - Uses current
level as starting point for determining
future staffing needs

 Bottom-up Approach - Each level of


organization, starting with lowest, forecasts
its requirements to provide aggregate of
employment needs.
Forecasting Human Resource
Requirements (Cont.)
 Relationship between Volume of Sales
and Number of Workers Required.

 Simulation Models - Simulation is a


forecasting technique for
experimenting with real-world situation
through mathematical model
representing that situation. A model is
abstraction of the real world.
Forecasting HR Availability
 Show whether needed
employees may be obtained
within company, from outside
organization, or from
combination of these sources.
Uses of HR Databases
 Many workers needed for future
positions may already working for firm.
 Databases include information on all
managerial and non-managerial
employees.
 Companies search databases within
company to see if employees with
needed qualifications already exist.
Growing trend is to automatically notify
qualified employees of new positions.
Shortage of Workers Forecasted
 Creative recruiting
 Compensation incentives – Premium
pay is one method
 Training programs – Prepare
previously unemployable people for
positions
 Different selection standards
Surplus of Employees

 Restricted hiring – Employees who


leave are not replaced
 Reduced hours
 Early retirement
 Downsizing - Layoffs
Downsizing
 Also known as restructuring and
rightsizing, is reverse of company
growing and suggests one-time
change in organization and number
of people employed.
 Retention bonuses are used to
entice terminated employees to
remain for short periods of time to
ensure continued services.
Negative Aspects of Downsizing
 Cost associated with low morale of
those remaining
 Layers removed, making advancement
in organization more difficult
 Workers may seek better opportunities,
fearing they may be in line for lay offs
 Employee loyalty significantly reduced
 Institutional memory lost
Negative Aspects of Downsizing
(Cont.)

 Remaining workers required to do


more
 When demand for products/services
returns, firm may realize it has cut
too deep
Outplacement
 Laid-off employees given assistance
in finding employment elsewhere.

 Companies use outplacement to


take care of employees by moving
them successfully out of company
rather than having to do it on their
own.
Succession Planning

 Process of ensuring that qualified


persons are available to assume key
managerial positions once the positions
are vacant
 Goal is to help ensure a smooth
transition and operational efficiency
Objectives of HRP
Micro (Organizational)
Macro (National) HRP HRP
 To forecast economic &  To prevent over staffing &
business environment. under staffing.
 To estimate future demands  To ensure employee
of number & skills by various availability.
industries.  To ensure that the firm is
 To ensure effective labour responsive to the
supply through activities like environment.
campus placements etc.  To provide direction to all HR
 To ensure more effective activities.
utilisation of HR.  To build line & staff
 To make labour supply partnership.
projections for future.
JOB ANALYSIS
 A job analysis is designed to
obtain descriptive information
about the tasks performed in a
job and the knowledge needed
to adequately perform those
tasks.
Definitions

 Task: a unit of work activity


performed by a worker within a
limited time period
 Duty: several related tasks that are
performed by a worker
 Position: the set of all tasks &
duties performed by a worker
 Job: a group of identical positions
Definitions (more….)

 Job Family: a group of two or more


jobs that have similar duties or
characteristics.
 Responsibilities: obligation to
perform certain task and duties.
Information obtained from Job
Analysis

 What is to be done? How it is to be


done? (Job Content)
 Under what conditions is the job to
be done? (Job Context)
 What skills, knowledge,
competencies, and attitudes are
required to perform the job?
(Human requirements)
Information obtained from Job
Analysis

 Job Content: It includes;


• Duties and Responsibilities- Actual
activities, and how, why, when each
activity is performed.
• Job Demands: decision making,
frequent tours, specialized
knowledge, speaking all the time
etc.
• Machine, tools and equipment:
Information obtained from Job
Analysis
• Performance Standards: Acceptable
level of performance for each aspect.
 Job Context: It includes;
Physical working conditions, work
schedule, interaction among workers
etc.
 Human Requirements: JA provides
information about; job related
knowledge, skills and required personal
attributes.
Job Analysis: A Basic Human Resource
Management Tool
Human Resource
Tasks Responsibilities Duties Planning
Recruitment
Selection
Training and
Job
Development
Descriptions
Job Performance Appraisal
Analysis Job Compensation and
Specifications Benefits
Safety and Health
Employee and Labor
Relations
Knowledge Skills Abilities Legal Considerations
Job Analysis for Teams
23
Job Analysis
 Job Analysis is the process of collecting &
analyzing information about jobs to write:
 Job Description: A document that identifies
the tasks & duties performed by a job.
 Job Specification: A document that identifies
the qualifications required by a job.
 Most organizations combine the Job
Description & the Job Specification into a
single document for each job
 Usually simply called a “Job Description”
JOB DESCRIPTIONS
 Summarize tasks and responsibilities
 Identify required knowledge,
training, skills, and experience
 Summarize optional desirable
knowledge, training, skills, and
experience
 Indicates supervisor or position in
organization

25
DESCRIPTIONS MAY BE USED FOR:

 Advertising a position
 Hiring in to a position
 Allocating tasks in a strategic plan
 Deciding about compensation
 Making performance reviews

26
DESCRIPTIONS INCLUDE

 Job title
 Job tasks
 Special Skills required
 Education needed
 Work experience needed
 Special job requirements
 Possible salary and benefits
 Submission information
 Contact information
27
DESCRIPTIONS AVOID
 Age
 Gender
 Race
 Religion
 National Origin
 Marital Status
 Disability/Health
 Dependent Care Responsibilities
 Unnecessary criteria

28
Format of a Job Description
Restaurant Manager
Job Summary:

 Common Elements Plan, organize, direct, and coordinate the workers and resources of the restaurant for the
efficient, well-prepared, and profitable service of food and beverages.
Tasks and Duties:

 Job Title 1. Work with chefs and other personnel to plan menus that are flavorful and popular
with customers. Work with chefs for efficient provisioning and purchasing of
supplies. Estimate food and beverage costs. Supervise portion control and

Job Summary
quantities of preparation to minimize waste. Perform frequent checks to ensure

 consistent high quality of preparation and service.


2. Supervise operation of bar to maximize profitability, minimize legal liability, and
conform to alcoholic beverage regulations.

 Tasks & Duties 3. Work with other management personnel to plan marketing, advertising, and any
special restaurant functions.

“Task Statements”
4. Direct hiring, training, and scheduling of food service personnel.
 5. Investigate and resolve complaints concerning food quality and service.
6. Enforce sanitary practices for food handling, general cleanliness, and maintenance

Qualifications
of kitchen and dining areas.
 7. Comply with all health and safety regulations.
8. Review and monitor, with bookkeeper or other financial personnel, expenditures

 Other information to ensure that they conform to budget limitations. Work to improve performance.
9. Perform other duties as assigned by management.
Qualifications:
1. Bachelor of Science degree in hotel/restaurant management is desirable. A
combination of practical experience and education will be considered as an
alternate.
2. Good organizational skills for dealing with diverse duties and staff.
3. Pleasant, polite manner for dealing with public as well as staff.
Reports to: Department:
Supervises: Division:
Date: Approved:

29
Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0
Format of a Task Statement

 First word or phrase (required):


Performs what action? (Present-
tense verb)
 Example: “Supervise …”
 Next word or phrase (required): To
whom or what is the action
performed? (Object of the verb)
 Example: “… operation of machine …”
 Next word or phrase (optional):
Additional information
 Example: “… to maximize profitability,
minimize legal liability, and conform to
alcoholic beverage regulations.”
Job Specification
 Minimum qualifications person
should possess to perform
particular job.
 Should reflect minimum, not
ideal qualifications for particular
job.
 Job specifications are often
included as major section of job
descriptions.
HOW TO DESIGN JOB
SPECIFICATION ?

 To design this profile:


• Summarize the Personal Qualities
• List prioritizing the essential or desirable
qualities.
Personal Qualities

 Qualification
 Experience
 Physical
 Life Style Characteristics
 Personality
Example: Job Specification for a
Credit Controller

 Quality Essential Desirable Qualifications: Min


Graduate, proficient in Mathematics and English
 Experience: At least 12 months experience
working in a credit control department
 Specialist training or knowledge: Assertiveness
training or credit Control training
 Physical :Clear voice
 Lifestyle Characteristics: Team or social
activities
 Personality: Friendly and confident, persistent
but assertive
JOB SPECIFICATION

 Job title:
 Reporting to:
 Responsibility for others:
 Overall purpose of the job (why does
the job exist?)
 Key activities (start each one with a
verb):
 Any special requirements (hours,
travel etc.):
Personnel Specification

 Company Name:
 Job Title:
 Criteria Essential
 Desirable
 Qualification
 Attainments Relevant Experience
 Skills and competencies

 Eg. Oral & written Skills. Analytical Skills. Arithmetical experience


etc.*Circumstances Indicate if any special circumstances are
attached to this post. (e.g. shifts, travel)*Should only be included if
a justifiable requirement for the job.

 NB: Drawn up by employer based on minimum versus ideal


requirements of the position as a result of a Job Description.
ESSENTIALS OF EFFECTIVE JOB
SPECIFICATION

 A job description describes the major


areas of an employee's job or position.
 A good job description begins with a
careful analysis of the important facts
about a job - such as:
• the individual tasks involved,
• the methods used to complete the tasks,
• the purpose and responsibilities of the job,
• the relationship of the job to other jobs,
• the qualifications needed for the job.
ESSENTIALS OF EFFECTIVE
JOB SPECIFICATION
 It's important to make a job description
practical by keeping its dynamism,
functional and current scenario. It should
be flexible.
 A poor job description will keep you and
your employees from trying anything new
and learning how to perform their job more
productively.
 A well-written, practical job description will
help you avoid hearing a refusal to carry
out a relevant assignment because "it isn't
in my job description."
ESSENTIALS OF EFFECTIVE
JOB SPECIFICATION
 Many jobs are subject to change, due
either to personal growth, organizational
development and/or the evolution of new
technologies.
 Flexible job descriptions will encourage the
employees to grow within their positions
and learn how to make larger contributions
to your company.
Job Design

 Process of determining specific


tasks to be performed, methods
used in performing these tasks, and
how job relates to other work in
organization.
Job Design

 Job Rotation – Moving of


employees from one job to another
without any fundamental change in
the nature of job.
 Job Enrichment - Basic changes in
content and level of responsibility of
job, to provide greater challenge to
worker.
Job Design (Cont.)

 Job Enlargement - Changes in


scope of job to provide greater
variety to worker.
 Reengineering - Fundamental
rethinking and radical redesign of
business processes to achieve
dramatic improvements in critical
measures of performance, such as
cost, quality, service and speed.
JOB EVALUATION

 It basically specifies the relative


values of each job in an
organization.
 It is useful tool for making decisions
about the compensation to be
attached with a particular position.
Types of Job Analysis Information

Considerable information is needed, such


as:
 Worker-oriented activities

 Machines, tools, equipment, and work


aids used
 Job-related tangibles and intangibles

 Work performance

 Job content

 Personal requirements for the job


45
Types Of Job Analysis Information

 Work Activities – work activities and processes;


activity records such as procedures used; personal
responsibility
 Worker-oriented activities – human behaviors,
such as physical actions and communicating on the
job; elemental motions for methods analysis;
personal job demands, such as energy expenditure
 Machines, tools, equipment, and work aids
used
 Job-related tangibles and intangibles –
knowledge dealt with or applied (as in accounting);
materials processed; products made or services
performed
46
 Work performance – error analysis; work
standards; work measurements, such as
time taken for a task
 Job context – work schedule; financial and
nonfinancial incentives; physical working
conditions; organizational and social
contexts
 Personal requirements for the job –
personal attributes such as personality and
interests; education and training required;
work experience
Job Analysis Methods

 Questionnaires
 Observation
Work Method Analysis
 Critical incident technique
 Interviews
 Employee recording
 Combination of methods
 Other Methods
 PAQ
 Functional job analysis
48
Questionnaires
 Typically quick and economical to use
 Structured questionnaire to employees

Problem:
 Employees may lack verbal skills

 Some employees tend to exaggerate


significance of their tasks

49
Observation
 Job analyst watches worker perform
job tasks and records observations
 Used primarily to gather information
on jobs emphasizing manual skills
 Used alone is often insufficient

Difficulty:
 When mental skills are dominant in a
job it becomes difficult to observe.
50
Interviews
 Interview both employee
and supervisor
 Interview employee first,
helping him or her
describe duties performed
 Then, analyst normally
contacts supervisor for
additional information

51
Employee Recording
 Describe daily work
activities in diary or log
 Problem: Employees
exaggerating job
importance
 Valuable in
understanding highly
specialized jobs

52
Combination of Methods
 Usually use more than one method
 Clerical and administrative jobs:
questionnaires supported by
interviews and limited observation
 Production jobs: interviews
supplemented by extensive work
observations may provide necessary
data

53
Other Methods Available for
Conducting Job Analysis
 Department of Labor Job Analysis
Schedule
 Functional Job Analysis
 Position Analysis Questionnaire
 Management Position Description
Questionnaire
 Guidelines-Oriented Job Analysis

4-54
 Structured job analysis
questionnaire that uses a checklist
approach to identify job elements
 Focuses on general worker
behaviors instead of tasks
 Some 194 job descriptors relate to
job-oriented elements

4-55
Functional Job Analysis

 Concentrates on the interactions


among the work, the worker, and
the organization
 Modification of the job analysis
schedule
 Assesses specific job outputs and
identifies job tasks in terms of task
statements

56
Position Analysis Questionnaire

 Uses a checklist approach to


identify job elements
 Focuses on general worker
behaviors instead of tasks
 194 job descriptors relate to job-
oriented elements
 Each job being studied is scored
relative to the 32 job dimensions

57
Management Position
Description Questionnaire
 Designed for management positions
 Uses a checklist to analyze jobs
 Has been used to determine the
training needs of individuals who
are slated to move into managerial
positions
 Has been used to evaluate and set
compensation rates for managerial
jobs and to assign the jobs to job
families 58
Guidelines-Oriented Job
Analysis
 Step-by-step procedure for
describing the work of a particular
job classification
 Obtains the following types of
information: (1) machines, tools,
and equipment; (2) supervision; (3)
contacts; (4) duties; (5) knowledge,
skills, and abilities; (6) physical and
other requirements; and (7)
differentiating requirements
59
PAQ (POSITION ANALYSIS
QUESTIONNAIRE)

 PAQ is a structured job analysis


questionnaire that measures job
characteristics and relates them to
human characteristics.
 The PAQ is completed "in house" by
human resource personnel and/or
managers who have usually
received Job Analyst Training from
PAQ Services.

60
Common uses of the PAQ are to:
 Develop an "internal equity"
compensation model.
 Develop selection criteria for a
specific job.
 The PAQ is used extensively by
researchers studying the nature of
work.
 Functional job analysis (FJA) is a
method of job analysis that was
developed by the Employment and
Training Administration of the United
States Department of Labor.
 FJA produces standardized
occupational information specific to
the performance of the work and the
performer.
FUNCTIONAL ANALYSIS
QUESTIONNAIRE
 Subject matter experts (SMEs) ask
participants about questions of task output:
• What do you get paid for? (outputs)
• What do you do to get work done? (tasks)
• What do you need to know to do what you
get paid for? (knowledge)
• What skills/abilities do you need to apply
your knowledge? (skills and abilities)
• What standards do you work for?
(performance standards)
HUMAN RESOURCE
ACQUISITION

RECRUITMENT & SELECTION


Meaning of Human Resource
Acquisition
It means identifying the real recruitment
needs of your organization and fulfilling
those needs. The organizational needs
are tied to the overall strategic business
plan.
It involves searching and obtaining
potential job candidates in sufficient
numbers and quality so that the
organization can select the most
appropriate people to fill its job needs.
Aspects for Recruiting

 Recruitment Goals
 Recruitment Philosophy:
• External Vs Internal
• Short term Vs Long term
• Diversity
• Fair recruitment process
o Recruiting Scope & Intensity
Aspects for Recruiting

 Recruitment Message: Type of


message:
• Traditional
• Realistic
• Attractive
• Targeted
o Media for Recruitment
o Temporary Vs Permanent
employees
5-16

Recruitment Sources
 Internal sources
 faster, cheaper, more certainty

 External sources

 new ideas & approaches

 Direct applicants & referrals

 self-selection, low cost

 Newspaper advertising

 Public employment agencies

 blue-collar jobs

 Private employment agencies

 white-collar jobs

 Colleges & Universities

 Electronic recruiting - the Internet


NEED FOR NEW STRATEGIES

 Aggressive growth plans.


 Retention.

 Recruitment costs.

 Time factor

 Intellectual property
ELEMENTS OF NEW STRATEGIES

 Specialized Recruitment Managers.


 Consolidating Recruitment Effort.
 Raising the Company’s Profile.
 New Talent Pools.
 University and Technical School
Relationships.
 Recruitment Technologies.
 Recruitment Resources
 Selection Methods
EMPLOYEE SELECTION

 The process of choosing people to


bring into an organization.
 Effective selection provides benefits
to an organization by improving the
effectiveness.
For example; motivated employees who fit
with the organizational culture can reduce
disciplinary problems and diminish costs
associated with replacing employees who
quit.
HOW IS EMPLOYEE SELECTION
STRATEGIC?
 Fit with an organization’s overall HR
strategy.
 HR strategies vary on two dimensions:
 internal or an external labor orientation
and
 competing through cost or differentiation.
 Provide guidance about the type of
employee selection practices that will
be most effective for a particular
organization.
Aligning Talent and HR Strategy
 The chart in next Figure shows how
selection decisions can be aligned with
the HR strategies.
 The horizontal dimension represents
differences in the type of talent sought.
 The vertical dimension represents the
type of relationship between the
employees and the organization.
Strategic Framework for Employee
Selection
Aligning Talent and HR Strategy
 Short-term Generalists - provide a
variety of different inputs but do not
have areas of special skill or ability.
 This is most often associated with the
Bargain Laborer HR strategy.
 Most positions are filled by hiring people
away from other organizations.
 The objective is to identify and hire
employees to produce low-cost goods and
services.
 To selection people who can perform simple
tasks that require little specialized skill.
Long-term Generalists
 Are individuals who have developed
skills and knowledge concerning how
things are done in a specific
organization.
 Long-term generalists are beneficial
for organizations using the Loyal
Soldier HR strategy.
 HR strategy is focused on keeping
employees once they are hired.
Long-term Specialists
 These are people who have an expertise in a
particular area. Such as Accounting.
 The use of long-term specialists fits the
Committed Expert HR strategy.
 Selection is to identify people who can assist
the company in innovating and produce
superior goods and services over time.
 People are hired even if they have not yet
developed all the skills needed to perform
the job, as long as they are committed to
advancing within a specific profession.
Short-term Specialists
 Are employees who provide specific
inputs for relatively short periods of
time.
 Associated with the Free Agent HR
strategy.
 Staffing is aimed at hiring people who
have already developed skills that
they can bring to the organization to
produce innovative goods and top-
quality service.
Selection Process

 Step 1 - Measurement: Measure each applicant’s


qualifications using the selection methods
 Step 2 - Decision Making: Use the qualifications
to predict job performance to decide which
applicant to hire
 Step 3 - Evaluation: Evaluate the selection
process
79
Selection Process
Selection methods measure the applicant’s
qualifications for the job

Describe the selection method


 Rate the validity of the selection method — how
well does the selection method predict job
performance:
 Poor: validity coefficient = r ≈ .00
 Moderate: validity coefficient = r ≈ .25
 Good: validity coefficient = r ≈ .50
 Great: validity coefficient = r ≈ .75

80
Selection Methods
 Application Blanks & Résumés
 Employment Interviews
 Reference Checks
 Medical Examinations
 Drug Tests
 Credit Reports
 Work Sample Tests
 Trainability Tests
 Assessment Centers
 Personality Inventories
 Honesty & Integrity Tests
 Cognitive Ability Tests
 Other Ability Tests
 Biodata Questionnaires
 Experience & Accomplishments Questionnaires
81
Résumés & Application Blanks

 Purpose: collect basic factual


information about the applicant
 Name, address, phone, e-mail,
education, work history, training, skills,
accomplishments, etc.
 Use: screen out applicants who
don’t meet the job’s minimum
qualifications in terms of education,
work experience, etc.
 Validity as typically used: poor
(typically r < .20) 82
Employment Interviews
 Types of Interviews (Degree of
Interview Structure)
 Unstructured
 Semi-structured
 Structured
Validity varies from low to
high.

83
Types of Structured Interviews

 Patterned Interview: ask about


education, work experiences, career
goals, etc.
 Example questions:
 Why did you pick your major?
 What are your strengths and weaknesses?
 Situational Interview
 3 types of questions:
 Hypothetical
 Job-Knowledge
 Job Requirements
Types of Structured Interviews

Behavioral Interview (Behavior


Description Interview): Questions ask
applicants for specific examples from their
past experiences of specific job-related
issues
Commonly used question format: “Tell me
about a time when ….”
Example: If team leadership is essential to
the job: “Tell me about a time when you
were the leader of a team. What did you
do? What happened?”
Reference Checks
 Always check carefully the references
of the finalists for the job before
making a job offer
 Negligent Hiring, occurs when an
organization hires someone who harms
another person and the organization could
reasonably have determined that the
employee was unfit.
 Include the applicant’s former
supervisors which leads to
 Defamation of Character, which occurs
when something untrue and harmful is said
about someone.
Medical Examinations

 A medical doctor performs a medical


exam of the applicant.
 Candidates may also be required to
provide their recent reports.

87
Drug Tests

 Used in the following situations:


 Part of the pre-employment medical
exam
 Part of an investigation of current
employees
 Random drug tests of current
employees

88
Credit Reports

 Credit reports can be used as a


selection method, but only if the
following conditions are satisfied:
 Applicant has been notified in a clear
and conspicuous written disclosure
 Applicant gives written authorization
 Information is not used in violation of
employment discrimination laws
Work Sample Tests

 In a standardized format, have


applicants perform the tasks
required by the job (all or some)
 Examples:
 For a sales job, have applicants make a
simulated sales pitch
 For a construction job, have applicants
interpret blueprints
 For a teaching job, have applicants teach
a class
Trainability Tests
 Typically used for semi-skilled jobs
when the applicant is not expected to
know the skills involved in the job
 Applicant is instructed how to perform the
tasks
 Applicant performs the tasks once or
twice with coaching
 Applicant then performs the tasks without
coaching
 Applicant is observed and performance is
evaluated for errors
Assessment Centers
 Work sample test for manager
positions
 Measure: leadership, communication,
decisiveness, organizing & planning, etc.
 Examples of assessment techniques:
 In-basket exercises
 Leaderless group discussions
 Oral presentations
 Role-playing exercises
 Applicants are observed & evaluated by
multiple trained observers
 Validity: good, but expensive
Personality Inventories

 Myers-Briggs Type Indicator (MBTI)


 Big 5 Dimensions of Personality:
“OCEAN”
 Minnesota Multiphasic Personality
Inventory (MMPI): Designed to
diagnose mental health issues
Honesty & Integrity Tests
 Polygraphs Test
 Paper-and-pencil honesty & integrity
tests
 2 types:
 Overt integrity tests: measures attitudes
about dishonest behavior
 Personality-oriented integrity tests:
measures personality traits associated with
integrity (eg. dependability &
conscientiousness)
Cognitive Ability Tests

 Also called mental ability tests or


intelligence tests
 Tools:
 Wechsler Adult Intelligence Scale (full)
 Wonderlic Personnel Test (quick: 12
minutes)
Other Ability Tests

 There are lots of tests of a variety


of abilities
 Examples:
 Bennett Mechanical Comprehension Test:
test of mechanical abilities
 Wonderlic Basic Skills Test: test of basic
verbal & math skills
 HAY Aptitude Test Battery: test of speed
& accuracy with alphanumeric data
Biodata Questionnaires

 Standardized questionnaire about


an applicant’s life experiences
 Example questions:
 Did you ever build a model airplane that
flew?
 When you were a child, did you collect
stamps?
 Do you ever repair mechanical things in
your home?
 Answers are scored using a scoring key
Experience & Accomplishments
Questionnaires

 Questionnaire focuses on an applicant’s


job-related experiences &
accomplishments
 To make the questions job-related, the
questionnaire is usually customized to fit
job categories
 Example: For an Information Systems Analyst
position:
• Describe the types of IT systems problems you
have encountered
• Describe the types of manual processes you have
studied to develop automation recommendations
• Describe your experiences in testing hardware,
software, or systems

99
Strategic Framework for
Employee Selection
Selecting the Best Selection
Method-Questions to ask
 How reliable is the process-
do you get the same result
time and again.
 Is it valid-does it relate to
the job or performance
outcome
 Is the method cost
effective-utility.
Utility
Choosing the Best Selection
Method-Questions to ask
 Is the process legal – does not
break any laws and fair – treats
every application the equally.
 Is it acceptable – How does the
applicant view the selection process
and consequently the organization.
Figure 6.2 What Makes a
Selection Method Good?
Figure 6.3 Graphical Illustration
of Correlations
WHAT SELECTION METHODS
ARE COMMONLY USED?
 The three most common methods
used are:
 Testing

 Gathering Information

 Interviewing
Testing
 Tests measure knowledge, skill, and
ability, as well as other characteristics,
such as personality traits.
 Types of Test
 Cognitive Ability Testing. Cognitive ability
testing measures learning, understanding, and
ability to solve problems. e.g. Intelligence
Tests.
 Personality testing measures patterns of
thought, emotion, and behavior. e.g. Myers
Briggs
Testing - continued
 Physical Ability Testing -assesses muscular
strength, cardiovascular endurance, and
coordination.
 Integrity Testing - are designed to assess the
likelihood that applicants will be dishonest or
engage in illegal activity.
 Drug Testing - normally requires applicants to
provide a urine sample that is tested for illegal
substances.
 Work Sample Testing (Assessment Center) -
measures performance on some element of the
job such as keyboarding.
Testing

*1 5 never; 2 5 rarely; 3 5 occasionally; 4 5 often; 5 5 almost always


Higher scores thus represent more widespread usage.

Source: Information from Ann Marie Ryan, Lynn McFarland, Helen Baron, and Ron Page, ‘‘An International Look at
Selection Practices: Nation and Culture as Explanations for Variability in Practice,’’ Personnel Psychology 52 (1999):
Testing

Sources: Information from Timothy A. Judge, Daniel Heller, and Michael K. Mount, ‘‘Five-Factor Model of Personality and Job
Satisfaction: A Meta-Analysis,’’ Journal of Applied Psychology 87 (2002): 530–541; Murray R. Barrrick, Michael K. Mount, and
Timothy A. Judge, ‘‘Personality and Performance at the Beginning of the Millennium,’’ International Journal of Selection and
Information Gathering
 Common methods for gathering
information include application forms
and résumés, biographical data, and
reference checking.
 Application Forms and Résumés –Generally
ask for information such as address and
phone number, education, work experience,
and special training.
 At the professional-level, similar information
is generally presented in résumés.
Information Gathering - continued
 Biographical data - historical events
that have shaped a person’s behavior
and identity.
 Reference Checking - involves
contacting an applicant’s previous
employers, teachers, or friends to
learn more about the applicant
Issues with reference checking:
 defamation of character, which occurs
when something untrue and harmful is
said about someone.
 negligent hiring, occurs when an
organization hires someone who harms
another person and the organization
could reasonably have determined that
Interviewing

 The interview is the most frequently used


selection method.
 Interviewing occurs when applicants
respond to questions posed by a manager
or some other organizational
representative (interviewer).
 Typical areas in which questions are
posed include education, experience,
knowledge of job procedures, mental
ability, personality, communication ability,
social skills.
Types of Interviews

 Structured Interviews - uses a list of


predetermined questions. All
applicants are asked the same set
questions. There are two types of
structured interviews.
 Situational interview, in which the
interviewer asks questions about what
the applicant would do in a hypothetical
situation
 Behavioral interview, in which the
questions focus on the applicant’s
Figure 6.4 Creating Structured
Interview Questions
Types of Interviews-continued
 Unstructured Interviews-open ended
questions are used such as “Tell me
about yourself”.

 This allows the interviewer to probe


and pose different sets of questions to
different applicants.
Interviews
SELECTION DECISIONS

 Decision can be made using one of


the following methods.
 Predictor Weighting - combines a set
of selection scores into an overall score
in which some measures count more
than others.
 Minimum Cutoff Approach – The
applicant’s strength in one area to
compensate for weakness in another
area.
Selection Decisions-continued

 Multiple Hurdle Approach - applicants


must meet the minimum requirement of one
selection method before they can proceed to
the next.

 Banding Approach - uses statistical


analysis to identify scores that may not be
meaningfully different.

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