Lecture 6

Prepared by: ZULAIKHA MAHMOOD, NUML (LAHORE CAMPUS) 1

 Sources
 STAFFING ORGANIZATIONS Seventh Edition by Herbert G. Timothy A. and Kammeyer-Mueller (page 391 to 401, 546-550)
 Recruiting, Interviewing, Selecting and Orienting New Employees by Diane Arthur. (Page 166-180, 209-210, 253-260)
 https://www.successfulculture.com/four-steps-to-a-successful-360-degree-hiring-process/
 https://www.slideshare.net/satyaJoshi1/selection-tests-and-reliability-and-validity-in-hrm
 https://resources.workable.com/tutorial/employee-compensation-structure
 https://hbr.org/2015/07/recruiting-for-cultural-fit- Harvard Business Review
 https://www.thebalancecareers.com/assess-job-fit-when-you-select-employees-1918165
 https://blog.sparksgroupinc.com/client/the-pros-and-cons-of-outsourcing-the-staffing-and-recruitment-process
 Essays, UK. (November 2018). Person Job Fit Versus Person Organization Fit. Retrieved from
https://www.ukessays.com/essays/psychology/person-job-fit-versus-person-organization-fit-psychology-essay.php?vref=1

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 Objectives
 Students will be able to learn

 conduct utility analysis

 purpose of background and reference checks
 different types of letters offered at the time of selection

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 Contents
 Selecting for fit and employment laws: Individual fit  360 degree evaluation and its strategy
with jobs, organizations
 Background and reference checks
 & cultures.
 Structuring compensation
 The legal & social context for R&S:
 Reliability, Validity and Utility Analysis
 Employment legislation,
 equal opportunity (adverse impact etc).

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 Proposed Questions
 Write a note Reliability, validity and Utility Analysis in selection process? How it will help in decision
making?

 Listening interviewee is most important because by doing so you will be able to judge him/her. what
strategies or ways can you adopt or follow to encourage applicants to talk?

 Why individual fit with organization is necessary to assess? What factors do contribute in assessing the fit?

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 360 Degree Evaluation
 When a company evaluates a prospective hire, it’s crucial to get the input and
perspective from the employees that the person will be working with on a daily basis.
This is important for a few reasons:

 Their perspectives will provide you with valuable insight into how they will (or will not) integrate
into the culture, and the team environment. They will see things you do not see.

 Empowering employees to weigh in on hiring decisions creates a culture of trust, communication,

and delegation
 Evaluation Strategy
 1: Communicate.
 2: Ensure Compliance.
 3: Encourage Preparation.
 4: Solicit Feedback Quickly.

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 Reliability and Validity
Selection process must be valid or reliable and consistent.
 Reliability refers to consistency of measurement.
 Reliability can be measured by several different statistical methods.
 The most frequent ones are test-retest. Alternate forms represented by a correlation
coefficient, which ranges 0 to 1.
 No selection test achieves perfect reliability, but the goal is to reduce error in
measurement as much as possible.
 High reliability is a necessary condition for high validity, but reliability does not ensure
that a test is valid.

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 VALIDITY
 The term validity refers to whether or not a test measures what it intends to measure. If a test has poor
validity then it does not measure the job-related content and competencies it ought to.

 Content Validity
 A test has content validity, if it reflects an actual sample of the work done on the job.
 Construct Validity
 Construct Validity is used to ensure that the measure, actually measures what it is intended to
measure and not other variables.
 Criterion Validity
 Criterion validity means who do well on the test also do well on the job and those who do poorly on
the test do poorly on the job.
 Concurrent validity
 Predictive validity

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 Utility Analysis
 Utility analysis refers to the process that describes, predicts and/or explains what
determines the usefulness or desirability of decision options, and examines how that
information affects decisions. 

 Utility refers to the expected gains to be derived from using a predictor.

 The utility of a selection test is the degree to which its use improves the quality of the workforce beyond
what would have occurred had the test not been used. Utility has been defined in terms of:
 – The proportion of selected individuals who are successful
 – The average increase in the mean performance score
 – The dollar payoff to the organization from the increased performance

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 Hiring Success Gain
 Hiring success refers to the proportion of new hires who turn out to be
successful on the job. Hiring success gain refers to the increase in the
proportion of successful new hires that is expected to occur as a result of
adding a new predictor to the selection system.

 The greater the expected gain, the greater the utility of the new predictor.

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 Selection Ratio.
 The selection ratio is simply the number of people hired divided by the number of
applicants ( number hired / number of applicants).
 The lower the selection ratio, the more useful the predictor. When the selection ratio is
low, the organization is more likely to be selecting successful employees.
 Base Rate. The base rate is defined as the proportion of current employees who are
successful on some criterion or HR outcome (br = number of successful
employees/number of employees).A high base rate is desired for obvious reasons.

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 Background Check and Reference Check
 Background information about job applicants can come not only from the
applicant but also from people familiar with the applicant in previous situations
(e.g., employers, creditors, neighbors). Organizations often solicit this
information on their own or use the services of agencies that specialize in
investigating applicants.
 Background information solicited from others consists of letters of
recommendation, reference checks, and background testing

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 Reference Checks
 Usually the person contracted is the immediate supervisor of the applicant or is in the HR department of
current or previous organizations with which the applicant has had contact.
 In checking references you have two aims. The first is to verify what the applicant has told you about his or
her work experience: where, how long, last position held, and particular assignments. The second aim is
learn about the applicant’s successes and failures, work habits, strengths and weaknesses, and so forth.

 applicant may file a defamation suit against them

 possibility of a negligent hiring suit,

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 Reference Checks
 To deal with such problems and obtain thorough, accurate information, the following
suggestions are offered.

 First, gather as much information as possible directly from the applicant,

 Second, be sure to obtain written authorization from the applicant to check
references.
 Third, specify the type of information being requested and obtain the information
in writing.
 Fourth, limit access to reference information to those making selection decisions.
 Finally, check relevant state laws about permissible and impermissible reference
check practices.

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  Telephone References
 Written References
 Personal References
TIPS:
 • Take a little time to build rapport with the reference
 • Briefly describe the job that the candidate is applying for and ask if this is something for which the person would be
well suited.
 • Ask about the candidate’s style, character, strengths, and weaknesses.
 • Avoid asking vague questions & Let one reference lead to another.
 • Do not assume that an applicant who has been fired is necessarily a bad risk.
 • Tell applicants that any job offer will be contingent upon a satisfactory reference from their current employers.
 • Obtain permission from applicants, on the application form, to contact former employers.
 • If an applicant is ultimately rejected because of a negative recommendation, be prepared to document the job-related
reason.

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 Letters of Recommendation
 A very common reference check in some settings (e.g., academic institutions) is to ask
applicants to have letters of recommendation written for them. There are two major
problems with this approach.
 First, these letters may do little to help the organization discern more-qualified from less-
qualified applicants.
 Second, most letters are not structured or standardized. What this means is that the
organization receives data from letter writers that are not consistent across
organizations.

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 Second Round/Interview
 1. Telephone-screening interview.
 2. Initial in-person interview.
 3. Second interview. Competency based behavior interviews can be
conducted at this stage. It can be a panel interview.
 4. Final Interview: The final interview is your last opportunity to impress
your potential employer before they make a decision on hiring you.

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 Structuring Compensation Offers
 Pay structures define employee compensation for different jobs or groups of jobs. They involve
setting salary ranges and pay grades based on market data and job roles.
 Salary negotiations involve discussing a job offer with a potential employer to settle on a salary and
benefits package that’s in line with the market.
 It’s important you know exactly how much value you can offer an employer before you begin the
process of negotiating a salary. There are several factors that can influence your compensation,
such as:
 Geographic location
 Years of industry experience
 Years of leadership experience
 Education level
 Career level
 Skills
 Licenses and certifications
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 Offer Letter
 After reference check and background information, organizations send offer letter.

 make the offer with enthusiasm and a personal touch, perhaps by referring to
something positive that you recall from the interview.

 It is the letter which you get through post and mail from the company’s HR
department offering to work in their company after you have been selected in an
interview.
 acceptance or rejection is entirely based on employee

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 Components to be in included
 starting date
 job title
 expected responsibilities
 compensation
 benefits summary
 time limit for responding to the offer
 Acknowledgement

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 An effective offer letter will balance the following
elements:
Genuine Welcoming Language.
 ‘‘We are pleased to offer you the position of . . .’’ ‘‘We look forward to working
with you.’’ ‘‘Welcome aboard!’’
Compensation and Position Specificity. ‘
 ‘We are pleased to offer you the position of senior credit analyst in our
Commercial Equipment Leasing division reporting to Mary Smith. We look
forward to your first day of work with us on January 2, 2007.You will receive a
base salary of $2,307.70 paid biweekly, which computes to an annual salary of
$60,000. We are also pleased to offer you a variety of fringe benefits that you will
become eligible for according to the provisions, limitations, and enrollment
procedures of each plan.’’

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 Disclaimers and Liability Protection.
Work with legal counsel to insert appropriate ‘‘at will employment’’ and ‘‘contingent
offer of employment’’ language regarding references, drug screen, non-compete
agreement, and so forth.

Joining Letter
. letter which you filled up on the day of joining a company informing that you have
joined the company on that particular date and time and at that particular location
and that you submitted it to your reporting manager.

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Appointment Letter
 letter which is provided by the company to employees upon your joining the
company where all the details regarding your job profile including package and the
terms and conditions will be there. Elements of an appointment letter include:
 Name and address of the organization
• Key Result Areas and KPIs
 Name and address of the employee • Compensation and Benefits
 Designation and remuneration offered • Employment Contract/ Bond
 Job location and shift timings • Company Policies, Procedures and
Guidelines

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 Person Organization Fit (P-O Fit)
ü P-O fit can be defined as compatibility between people & organizations. With regards to employee selection
research, P-O fit can be conceptualized as the match between an applicant & boarder organizational attributes.

ü The P-O fit research can be traced back to Schneider’s (1987) ASA framework (Attraction-Selection-
Attrition). As per Schneider, persons are always on the look out for situations attractive to them rather than fit
any assigned situation.
ü According to Schneider’s ASA framework, the attraction between persons & organizations are based on their
similarity. This affect the job choice approach of a applicant & hiring decisions in organizations.

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 CULTURE FIT
ü Culture fit is the glue that holds an organization together. That’s why it’s a key trait to look for
when recruiting.

ü But before the hiring team starts measuring candidates’ culture fit, they need to be able to define
and articulate the organization’s culture – its values, goals, and practices — and then weave this
understanding into the hiring process.

ü Cultural fit is the likelihood that someone will reflect and/or be able to adapt to the core beliefs,
attitudes, and behaviors that make up your organization.

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 JOB FIT
ü Job fit is a concept that explains whether the intersection between an employee's strengths, needs and
experience, and the requirements of a particular job and work environment match or not.
ü The primary concern was limited to finding applicants with the right skills & abilities for a available
job in the organization.

ü Based on realistic job previews, accurate and realistic job information enables applicants to assess the
degree of congruence between their KSA and the job requirements
ü Managers can also use job fit assessments and testing, behavioral interviews, and significant thorough
background checking to determine beforehand if the applicant you like will fit the current job you
have available.

ü Using P-J fit in the initial selection process & using P-O Fit in the latter or final stages of selection of
an employee would be ideal. One the most used selection method for assessing an applicant is
Interviewing.

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 Fit with Teams
 In many work situations, tasks have simply become so complicated that their
performance requires a combination of knowledge, skills, and abilities that one
person rarely possesses.
 Conceptualizing and Designing Workplace Teams
 Team-level criteria can include such things as team innovation, team viability, and
team task performance.
 Selection for teams therefore focuses on the identification of particular technical
skills required by the team that are not already supplied, or are supplied at higher
cost, by others in the team.
 The members with extraversion personality trait are viewed by their team mates as
having greater impact on the team’s performance.

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 Protection of Employees
ü Laws and regulations seek to provide specific protections to employees that they could conceivably, though
improbably, acquire individually in an employment contract. These protections pertain to employment
standards, individual workplace rights, and consistency of treatment.

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 Title VII of Civil Rights Act
ü According to this act, an employer cannot discriminate on the basis of race, color, religion,
sex or national origin with respect to employment.

Equal Employment opportunity commission

Executive Orders
ü Extension of EEO, required contractors to take affirmative action for the purpose of
eliminating the present effects of past discrimination

Bona Fide Occupational Qualification (BFOQ)

ü An employer may attempt to justify use of a protected characteristic, such as national
origin, as being a bona fide occupational qualification, or BFOQ. The law permits
such claims, but only for sex, religion, and national origin—not race or color.

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 Equal pay Act of 1963
ü This act made it unlawful to discriminate in a pay on the basis of sex when jobs involve equal work, skills, effort
and responsibility and are performed under similar working conditions.
Testing
ü The law explicitly permits the use of tests in staffing.
Seniority or Merit Systems
ü The law explicitly permits the use of seniority and merit systems as a basis for applying different terms and
conditions to employees.
Age Discrimination in Employment Act (1967)
Prohibited Age Discrimination
ü “to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with
respect to his compensation, terms, conditions or privileges of employment, because of such individual’s
age”; and
Bona Fide Occupational Qualification (BFOQ)

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 Americans With Disabilities Act (1990)
ü The ADA’s basic purpose is to prohibit discrimination against qualified individuals with disabilities and to
require the employer to make reasonable accommodation for such individuals unless that would cause undue
hardship for the employer.

Qualified Individual with a Disability

ü A qualified individual with a disability is “an individual with a disability who, with or without
reasonable accommodation, can perform the essential functions of the employment position that
such individual holds or desires.”

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 Rehabilitation Act (1973)
ü According to the law, “no otherwise qualified individual with handicaps shall, be excluded from
participation in, or denied the benefits of, or be subjected to discrimination under any program or
activity receiving federal assistance.”
Affirmative Action
ü The law explicitly requires employers to undertake affirmative action. It says that the federal
contractor “shall take affirmative action to employ and advance in employment qualified individuals
with handicaps.”
Affirmative action can lead to adverse impact.
ü The overall impact of employer practices that result in significantly higher percentages of members of
minorities and other protected groups being rejected for employment , placement and promotion.

ü Adverse impact refers to employment practices that appear neutral but have a discriminatory effect
on a protected group. Adverse impact may occur in hiring, promotion, training and development,
transfer, layoff, and even performance appraisals.

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