Chapter 6
Selecting Applicants
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Chapter Outline
•
6-1 Gaining Competitive Advantage
•
6-2 HRM Issues and Practices
•
6-3 The Manager’s Guide
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6-1a Opening Case: Gaining Competitive
Advantage at Southwest Airlines (SWA)
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Problem: Selecting the best employees from
thousands of applicants.
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Solution: Implementing targeted selection.
•
How the use of targeted selection enhanced
competitive advantage

SWA has been quite successful in achieving a
competitive advantage, due, in part, to its selection
practices.
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6-1b Linking Selection Practices to
Competitive Advantage
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The effectiveness of a firm’s selection practices can
impact an organization’s competitive advantage in a
number of ways:
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Improving productivity.
Achieving legal compliance.
Reducing training costs.
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6-2a Technical Standards for Selection
Practices
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Validity, the technical term for effectiveness, refers to
the appropriateness, meaningfulness, and
usefulness of selection inferences.
•
The closer the actual job performances match the
expected performances, the greater the validity of the
selection process.
•
Manager must have a clear notion of the needed job
qualifications, and must use selection methods that
reliably and accurately measure these qualifications.
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6-2a Technical Standards for Selection
Practices (cont.)
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Determining job qualifications
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Job qualifications refer to the personal qualities an
employer seeks when filling a position.
Some qualifications, such as technical KSAs and
nontechnical skills are job-specific; other qualifications
are universal.
By basing qualifications on job analysis information, a
company ensures that the qualities being assessed
are important for the job.
Job analyses are also needed for legal reasons.
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6-2a Technical Standards for Selection
Practices (cont.)
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Choosing selection methods
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The choice of selection methods should reliably and
accurately measure the needed qualifications.
Reliability is the degree of self-consistency among the
scores earned by an individual.
Reliable evaluations are consistent across both people
and time.
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© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
6-2a Technical Standards for Selection
Practices (cont.)
•
The firm’s assessments should accurately measure
the needed worker requirements.
•
A particularly effective approach or model to follow
when making this decision is known as the behavior
consistency model.
•
The model specifies that the best predictor of future
job behavior is past behavior performed under similar
circumstances.
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6-2a Technical Standards for Selection
Practices (cont.)
•
To implement the behavior consistency model,
employers should follow this process:
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Thoroughly assess each applicant’s previous work
experience to determine if the candidate has exhibited
relevant behaviors in the past.
If such behaviors are found, the manager should
evaluate the applicant’s past success on each
behavior based on carefully developed rating scales.
If such behaviors are not found, estimate the future
likelihood of these behaviors by administering various
types of assessments.
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6-2a Technical Standards for Selection
Practices (cont.)
•
Assessing and documenting validity
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Content-oriented strategy: Demonstrate that it followed
“proper” procedures in the development and use of its
selection devices.
Criterion-related strategy: Provide statistical evidence
showing a relationship between applicant selection
scores and subsequent job performance levels.
Validity generalization strategy: Demonstrate that
other companies have already demonstrated the
validity of the selection instruments.
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6-2a Technical Standards for Selection
Practices (cont.)
•
Content-oriented strategy
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Evidence would show that the selection devices were
properly designed and were accurate measures of the
needed worker requirements.
The employer must demonstrate that:
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The selection devices were chosen on the basis of an
acceptable job analysis.
They measured a representative sample of the KSAs
identified.
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6-2a Technical Standards for Selection
Practices (cont.)
•
Criterion-related strategy

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Attempts to demonstrate statistically that someone
who does well on a selection instrument is more likely
to be a good job performer than someone who does
poorly.
To gather criterion-related evidence, two pieces of
information are required : a predictor score and a
criterion score.
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6-2a Technical Standards for Selection
Practices (cont.)
•
Criterion-related strategy
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Predictor scores: Represent how well the individual
fared during the selection process.
Criterion scores: Represent the job performance level
achieved by the individual, usually based on
supervisor evaluations.
Validity coefficient: An index of criterion-related validity
reflecting the correlation between selection and
criterion scores; should be at least r = .3.
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6-2a Technical Standards for Selection
Practices (cont.)
•
A criterion-related validation study may be conducted
in one of two ways:
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Predictive validation study: Information is gathered on
actual job applicants.
Concurrent validation study:
-
Information is gathered on current employees.
More commonly used as they can be conducted more
quickly.
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6-2a Technical Standards for Selection
Practices (cont.)
•
Validity generalization strategy


Established by demonstrating that a selection device
has been consistently found to be valid in many other
similar settings.
Organization must present the following data:
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Studies summarizing a selection measure’s validity for
similar jobs in other settings.
Similarity between jobs for which the validity evidence is
reported and the job in the new employment setting.
Similarity between the selection measures in the other
studies composing the validity evidence, and those
measures to be used in the new employment setting.
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6-2b Legal Constraints on Employee
Selection
•
Equal Employment Opportunity Commission (EEOC)
guidelines on employment discrimination
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The Uniform Guidelines
National Origin Discrimination Guidelines
Sexual Harassment Guidelines
Pregnancy Discrimination Guidelines
Age Discrimination Guidelines
Religious Discrimination Guidelines
Disability Discrimination Guidelines
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6-2b Legal Constraints on Employee
Selection (cont.)
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The Uniform Guidelines
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Issued in 1978.
Apply to nearly all organizations employing 15 or more
employees.
Designed to assist organizations in understanding the
compliance requirements imposed by Title VII of the
Civil Rights Act, primarily with regard to disparate
impact claims.
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6-2b Legal Constraints on Employee
Selection (cont.)
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National Origin Discrimination Guidelines

Individuals rejected for employment have just cause
for legal redress if their rejection was based on any of
the following factors:
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Place of origin
Ancestor’s place of origin
Marriage to a person of a foreign origin
Membership in an association seeking to promote the
interests of a national origin group
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6-2b Legal Constraints on Employee
Selection (cont.)
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Sexual Harassment Guidelines: The employer is
liable for unlawful sex discrimination if:


An employment opportunity is granted because of a
candidate’s submission to an employer’s request for
sexual favors.
An employment opportunity is withheld because of the
candidate’s refusal to grant such favors.
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6-2b Legal Constraints on Employee
Selection (cont.)
•
Pregnancy Discrimination Guidelines
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
A female applicant who is temporarily unable to
perform some job function due to her pregnancyrelated condition must be treated in the same manner
as any other applicant with a temporary disability.
The preferences of coworkers, clients, or customers
would not serve as a legitimate, nondiscriminatory
reason for rejecting such a candidate.
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6-2b Legal Constraints on Employee
Selection (cont.)
•
Age Discrimination Guidelines
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Prohibits disparate treatment directed towards
applicants aged 40 and above.
If charged with age-based disparate treatment, a firm
must demonstrate that:
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The hiring decision was not based on age, but on some
“reasonable factor other than age,” such as lack of skill.
Age is a BFOQ (bona fide occupational qualification) for
the position.
It is a business necessity.
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6-2b Legal Constraints on Employee
Selection (cont.)
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Religious Discrimination Guidelines
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Requires employers to accommodate a reasonable
request for religious accommodation, as long as the
accommodation does not pose an undue hardship on
their business operations.
When judging a claim of undue hardship, the courts
apply a standard called the “de minimis principle.”
The principle states that to be declared an undue
hardship, the cost of accommodation must be more
than minimal.
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6-2b Legal Constraints on Employee
Selection (cont.)
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Disability Discrimination Guidelines
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
The act defines ‘‘disability’’ as a physical or mental
impairment that substantially limits one or more of an
individual’s major life activities.
A summary of the ADA guidelines give a detailed
account of what an organization may (or must) do and
what it may not do when it considers employing a
disabled applicant.
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6-2b Legal Constraints on Employee
Selection (cont.)
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Constitutional constraints on selection – Fourth
Amendment to the U.S. Constitution
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Pertains to an individual’s privacy rights.
Is the basis for workplace-related lawsuits dealing with
the use of certain physiological screening devices.
Imposes constraints on the type of information that
employers may lawfully collect about an applicant.
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6-2b Legal Constraints on Employee
Selection (cont.)
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Constitutional constraints on selection – Fifth and
Fourteenth Amendments to the U.S. Constitution


Provides citizens with equal protection under the law.
Fifth Amendment applies to federal employees, while
the Fourteenth Amendment applies to state
employees.
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6-2b Legal Constraints on Employee
Selection (cont.)
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Tort law constraints on selection
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Refers to civil laws designed to discourage individuals
from subjecting others to unreasonable risks and to
compensate those who have been injured by
unreasonably risky behavior.
Two areas that bear the most influence on employee
selection are negligent hiring and defamation.
Defamation
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The unprivileged publication of a false oral or written
statement that harms the reputation of another person.
Claims often arise when giving reference information.
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6-2b Legal Constraints on Employee
Selection (cont.)
•
Negligent hiring
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
Refers to situations in which employers hire an
applicant who is somehow unfit for the job, and
because of this unfitness, commits an act that causes
harm to another.
An individual would be considered unfit in a negligent
hiring case if he or she:
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Lacked the necessary training and experience.
Had a physical or mental infirmity.
Was frequently intoxicated.
Experienced constant forgetfulness.
Liked to engage in horseplay or was reckless or
malicious.
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6-2c Selection Methods
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Application blanks
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Biodata inventories
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Background investigations
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Reference checks
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Employment interviews
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Employment tests
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Assessment centers
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Screening for dysfunctional behavior
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6-2c Selection Methods (cont.)
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Application blanks – Purpose
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To determine whether candidates meet the minimum
qualifications for the job.
Help employers judge the presence (or absence) of
certain job-related attributes.
Used to “red flag” any potential problem areas
concerning the applicant.
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Figure 6-2 Examples of Potentially
Unlawful Questions
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6-2c Selection Methods (cont.)
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Biodata inventories
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Responses are objectively evaluated.
The two types of biodata inventories are weighted
application blanks and biographical information blanks.
Weighted application blank: A biodata inventory
containing the same questions as an application blank.
Biographical information blank: A biodata inventory
consisting of a set of questions designed to cover a
broad array of background information.
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6-2c Selection Methods (cont.)
•
Biodata inventories (cont.)
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Used as a prescreening device to predict tenure.
Excellent predictors of job success.
Few companies use this method.
Have some legal concerns that may be justified.
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6-2c Selection Methods (cont.)
•
Background investigations

Serve two purposes – Screen applicants for:
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Positions of trust in occupations such as law
enforcement, private security, and nuclear power.
“Special duty of care” positions in order to satisfy
requirements imposed by negligent hiring law.
Employers must avoid violating the legal rights of
applicants; the primary law being Fair Credit Reporting
Act.
-
This law is designed to protect applicants’ rights in the
event of a background investigation conducted by an
investigative agency.
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6-2c Selection Methods (cont.)
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Reference checks
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Involve collecting information from applicants’ previous
employers.
Provide another potentially useful means of
assessment.
Serve two important purposes:
-
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Verify information provided by applicants to ensure that
they have not fabricated their qualifications or work
history.
Provide additional information about applicants, which
may be predictive of job performance.
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© 2010 Cengage Learning. Atomic Dog is a trademark used herein under license. All rights reserved.
6-2c Selection Methods (cont.)
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Employment Interviews
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
Provide an opportunity for applicants to describe their
previous work experience, educational history, career
interests, and likes and dislikes among others.
Four types of valuable information sought during an
interview:
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
Technical knowledge
Self-evaluative information
Situational information
Behavior description information
Raise the same legal concerns as application blanks.
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6-2c Selection Methods (cont.)
•
Employment tests – Mental ability tests
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Designed to measure intelligence or aptitude.
Used primarily for assessing entry-level applicants for
jobs that do not require specific job-related skills.
Determine whether applicants have the capacity to
learn job skills successfully.
Often have a disparate impact on certain protected
groups; some employers are thus reluctant to use
mental ability tests.
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Figure 6-3 The “Big Five” Personality
Types
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6-2c Selection Methods (cont.)
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Employment tests – Personality tests
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Provide a more objective way to gauge personality.
The validity of a personality test is situation specific; a
well-designed test can be a valid predictor of job
performance for some jobs, but not for others.
There are few legal problem associated with their use.
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6-2c Selection Methods (cont.)
•
Employment tests – Work sample tests
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Require applicants to perform some of the actual (or
simulated) duties of the vacant position.
Used to assess manual skills, clerical skills, and
managerial skills.
The tests are quite valid, if properly constructed and
implemented, as they provide direct measures of job
performance.
Are quite expensive.
Could have possible safety problems.
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6-2c Selection Methods (cont.)
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Developing work sample tests
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Conduct a job analysis to identify the important tasks
of the position.
Choose a representative sample of tasks to be
included on the test.
Develop a scoring procedure for assessing how
effectively an applicant performs each task.
Administer the test to applicants under standardized
conditions.
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6-2c Selection Methods (cont.)
•
Assessment centers
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A selection technique that consists of work samples
and other assessment techniques.
Is primarily used to select managers.
Work sample tests are often administered as part of
an assessment center.
The most commonly used work sample tests are:
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
Leaderless group discussion
Management games
In-basket
Have been found to be quite valid when appropriately
developed and used.
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6-2c Selection Methods (cont.)
•
Screening for dysfunctional behavior
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Employers do not want to hire applicants with
dysfunctional tendencies such as drug addiction and
dishonesty.
Organizations can minimize drug abuse costs by
administering drug tests to applicants.
Applicant honesty is assessed to reduce instances of
employee theft at the workplace.
The two primary methods for predicting dishonesty are
polygraph tests and paper-and-pencil honesty tests.
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6-2c Selection Methods (cont.)
•
Screening for dysfunctional behavior

Polygraph tests: Designed to ascertain truthfulness of
the information given by the examinee.
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
The Employee Polygraph Protection Act (EPPA) of 1988
bans most private-sector employers from using
polygraph tests in the selection of candidates.
Paper-and-pencil honesty tests: Written tests that
employers use to estimate an applicant’s propensity to
steal from an employer.
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Paper-and-pencil honesty tests may either be overt or
personality-based measures.
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6-3a Employee Selection and the
Manager’s Job
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Determining needed competencies
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Assessing job candidates
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Providing input into selection decisions
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Making job offers - Two important principles:

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The offer should not be perceived as a gift; it must be
sold to the candidate.
The offer should not remain open awaiting response
for too long, which would preclude making an offer to
another candidate.
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6-3a Employee Selection and the
Manager’s Job (cont.)
•
The Manager’s role in validation
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The actions taken by managers in the selection
process affect the validity of the process.
When the validity of the selection process is
challenged, as it may be in a discrimination suit, courts
will scrutinize the manager’s actions.
The Manager’s role in complaint investigations
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6-3b How the HRM Department Can Help
•
HR professionals play two primary roles:
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
Providing technical support.
Helping managers conform to legal and technical
standards throughout the selection process.
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6-3b How the HRM Department Can Help
(cont.)
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Technical functions
• Conduct job analyses and write
job descriptions.
• Conduct initial screening of
applicants.
• Set minimum qualifications for
jobs.
• Conduct (or commission)
background or reference checks.
• Determine which selection
method to use.
• Approve selection decisions made
by line managers.
• Develop application blanks.
• Monitor the firm’s hiring practices for
EEO compliance and validity.
• Select, develop, and administer employment tests.
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6-3b How the HRM Department Can Help
(cont.)
•
HR professionals assist managers in various ways:
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Answering EEO-related questions and providing
legal/EEO training.
Offering interviewer training programs.
Helping choose a selection device that would be most
appropriate for a given situation.
Update veteran managers about changing legal
requirements.
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6-3c HRM Skill-Building for Managers
•
Avoiding interviewer mistakes
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Have a clear idea of the type of person needed to fill
the job; review and revise the job description as
needed.
Correctly interpret the information on the application
blank; keep an open mind throughout the process.
Prepare a set of job-related questions and ensure that
each is covered during the interview.
Do not telegraph the right answer prior to asking the
question.
Withhold information regarding the job and worker
requirements until the end of the interview.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Avoiding interviewer mistakes
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Ask questions that make it difficult for applicants to
always present themselves favorably.
Avoid jumping to conclusions by probing applicants to
elaborate and clarify previous responses.
Note any inconsistencies among the responses given
by an applicant during the interview.
Avoid making snap judgments by preparing rating
forms prior to the interview, listing relevant attributes.
Evaluate each candidate immediately after the
interview; interview notes may be documented to
defend against discrimination suits.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Conducting a structured interview
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Prepare for the interview in a thorough manner.
Begin and conduct the interview in a friendly but
businesslike manner.
Solicit information in a nonjudgmental manner and
maintain control of the interview.
Give pertinent information about the job and firm;
honestly answer the applicant’s questions.
Terminate the interview by expressing appreciation
and explaining the selection procedure.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Identifying the best candidate when a compensatory
model is operating:
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
Evaluate applicants on each individual attribute
needed for the job.
Statistically combine the ratings to form a composite
score—the composite being a weighted average,
reflecting the relative importance of each attribute.
Select the applicant with the highest score.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Identifying the best candidate when a
noncompensatory model is operating:


A subset of candidates may be eliminated during
various stages of the selection process if a candidate
possesses a noncompensable deficiency; this
approach is called “successive hurdles.”
The use of successive hurdles lowers selection costs.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Dealing with EEOC investigations
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
Should an applicant file a discrimination claim, the
EEOC will notify the employer in writing within 10
days.
The company should launch its own investigation of
the charges by preparing witness statements,
preparing for a possible full-scale EEOC investigation,
and subsequent litigation.
Upon completion of its own investigation, the company
must decide whether to fight the charges or to settle.
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6-3c HRM Skill-Building for Managers
(cont.)
•
Dealing with EEOC investigations (cont.)
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If no settlement is reached, the EEOC requires the
employer and the complaining party to attend a “nofault” conference.
If the matter is not resolved during the conference, the
EEOC will conduct a full-scale investigation.
Ultimately, the EEOC will either issue a “cause” or “no
cause” decision.
If the finding is a “no cause” the complaining party is
issued a ‘‘right to sue’’ and has 90 days to file a
lawsuit.
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