Organisational Behaviour - I (OB-I)

Indian Institute of Management, Indore

Organizational Hiring Process

Group 9
Section C

Divyam Harlalka | 2018IPM034

Raja Rajeshwari | 2021PGP517
Sunil Yadav | 2021PGP394
Tanya Agrawal | 2021PGP405
Tushar Dua |2021PGP410
 The Organizational Hiring Process

When it comes to recruiting an employee for the company, the managers and HR
professionals make decisions that are directly related to the company's and its stakeholders'
well-being. The choices concern the kind of people needed by the company at the time, as
well as their working talents and desired rewards. Following that, we see businesses
strategize on how to lure deserving individuals with various advantages associated with the
positions. Following that, throughout the recruiting process, interviewers/recruiters are prone
to make errors due to prejudices, which might stymie an organization's growth. These biases
can have both good and bad consequences on the interviewee's and firm's recruiting. We see
several ways businesses utilise to keep employees engaged throughout their careers with the
company once they have been ultimately onboarded. As a result, we investigate the
Organizational Hiring Process in depth and attempt to analyse it using several frameworks.

Types of Employees in the Organisation:

We need to know which types of workers are most desirable in a business to understand what
sort of applicants a firm is trying to hire. In order to know this, we can use MBTI test. The
truth is that the Myers-Briggs assessment can be an extremely helpful tool in hiring decisions,
if it is used correctly. The Myers-Briggs Type Indicator looks at four aspects of our
personality that combine in a dynamic way to capture the essence of who we are and what
drives us.

The test classifies people as one of a possible 16 different types, across four different
spectrums: Extroverted vs. introverted, intuitive vs. sensing, thinking vs. feeling, and judging
vs. perceiving.

Extraversion (E) – Introversion (I)

Extraverts (also known as extroverts) are "outward-turning" persons who are more action-
oriented, prefer regular social interaction, and feel rejuvenated after spending time with
others. Introverts are "inward-turning," meaning they are focused on their thoughts, like deep
and meaningful social relationships, and feel rejuvenated after spending time alone.

Sensing (S) – Intuition (N)

This scale considers how people gather information from their surroundings. People who
prefer sensing are more aware of reality, especially what they may learn through their own
senses. They appreciate acquiring hands-on experience and tend to focus on facts and details.
While, patterns and sensations are more important to those who value intuition. They like
pondering possibilities, picturing the future, and debating complex concepts.

Thinking (T) – Feeling (F)

This scale examines how people make decisions based on data obtained through their sensing
or intuition processes. Facts and objective data are more important to people who prefer to
think. When making a decision, they are usually consistent, logical, and impersonal. Those
who prefer to feel are more inclined to think about people and emotions when making
decisions.

Judging (J) – Perceiving (P)

The last scale takes into account how people deal with the outside environment. Structure and
strong conclusions are preferred by those who incline toward judging. Perceiving people are
more open, flexible, and adaptable than those who lean toward perception.

Each type is then listed by its four-letter code:

 ISTJ - The Inspector

 ISTP - The Crafter
 ISFJ - The Protector
 ISFP - The Artist
 INFJ - The Advocate
 INFP - The Mediator
 INTJ - The Architect
 INTP - The Thinker
 ESTP - The Persuader
 ESTJ - The Director
 ESFP - The Performer
 ESFJ - The Caregiver
 ENFP - The Champion
 ENFJ - The Giver
  ENTP - The Debater
 ENTJ - The Commander

The Decision-making process of Hiring using Models:

Rational Model

This model is based on the presumption that the Recruiter from the Organisation has all the
information about a candidate. They are well equipped to make an informed decision. But in
reality, the recruiter only has the information given by the candidate. There may or may not
be some significant events in the concerned individual’s life which would have had an impact
on the hiring decision. This model needs to be used very carefully and preferably for
individuals being hired for a lower level in the management hierarchy.

Bounded Rationality Model

This model does not assume that the recruiter has all the information. Thus, they can not go
through all alternatives. There is a need to consider all aspects to the most reasonable degree.
Although, this decision making process is risky it helps recruiters find a more realistically
appropriate candidate. The recruiter takes the information available as a proxy for the
candidate’s exhaustive information. This model is used for recruitment in all positions in the
management hierarchy.

Intuition Model

This model is based on the recruiter’s intuition. Intuition is based on the values and personal
experiences from the past. This decision may seem to be inappropriate on the outset. But in
the long run, judgements based on intuition could turn out to be very good as well. Hiring
decisions should ideally be based on the pre-set parameters for scoring the candidate.
Sometimes though there are certain aspects not captured in the scoring criteria which the
recruiter might want to consider impromptu. This may result in the concerned individual
being hired. This model is not highly recommended though as it could result in a less
deserving candidate getting hired with a higher probability.
Inclusion and Diversity in the Hiring Process:

The traditional view did not propagate diversity and inclusion in the hiring process.
Although, this emanated from the backward mindset but research also showed that conflict
reduces the output of an organization and there may be more conflicts if there is a diverse
group of people. Many societies which have a high-power distance may find it more difficult
to include diversity in their workforce.

Presently, the situation has changed significantly. Companies are actively looking for having
a diversified workforce. This they believe is both their social responsibility and would also
help in better brainstorming and decision making. HUL in the first page of their annual report
have in bold the percentage of women employees in workforce and top management.
Goldman Sachs Credit Risk Division lists the percentage of women in the top management as
a risk factor in deciding whether to provide credit lines or not. Inclusion and Diversity can be
with respect to Gender, Race, Caste, Creed etc. The acknowledgement for change in hiring is
visible in many companies. Diageo has committed to have 50% of its new campus hires as
women. Such a change has made the hiring process much more inclusive.

Perceptions in Hiring:

A study by Bryan Swider & colleagues at Scheller College of Business, Georgia Institute of
Technology, on how first impressions changes the perceptions of interviewers in the hiring
process found that interviewees who had good impressions on the interviewer got better
scores in the interview than those who made poor first impressions. The research indicates
that the initial greeting when the interviewee enters the room & settles him/herself plays a
vital role in determining the outcome of the interview.

 Physical Appearance:
Physical appearance is the first impression that an interviewee can give an
interviewer. Formal clothing is a fundamental requirement for interviews & it
 represents a crucial work attitude. This emphasizes the need for interviewees to be
well-groomed to have a positive impact on the outcome of the interview. Photographs
attached with the resume are also given importance for this very reason. On the
contrary, if the interviewee is not well-groomed, it negatively impacts the outcome of
the interview. Apart from formal clothing, physical well-being that can be evidently
assessed by interviewers also play a major role in the hiring process.

 Facial expressions:
The six universal emotions of happiness, sorrow, contempt, fear, anger & surprise can
be deduced by one’s facial expressions. These can determine & evaluate one’s mental
perceptions in a particular situation. During the hiring process, the interviewers try to
judge a person’s ability to hide their emotions & give their best performance while
under stress. Stress interviews are known to assess the interviewee’s ability to manage
their facial expressions in a plethora of stressful conditions. Competency can also be
assessed with the help of interviewee’s facial expressions. For example, if the
candidate is uptight in an interview, he will seem less competent.

 Verbal Communication:
The usage of words contributes to how a person creates a first impression about
himself or herself. One might not require to have a distinguished vocabulary to
communicate & create a good impression. One might also not necessarily use jargons
to impress the interviewer during their hiring process. When the interviewee
communicates through verbal cues, the interviewer not only judges his ability to
communicate but also his flow of thought. This is primarily seen during group
discussions where it is not only about putting one’s point forward or speaking the
most, but also about making sense while doing so. Group discussions are an important
part of the hiring process where even one’s ability to agree & disagree politely &
gently is noted. This qualifies their characteristics while working in a team. This is
essential in an organization as situations may arise where members of a team differ on
a variety of issues while expressing their opinions.

 Non-verbal Communication:
 While verbal cues help understand the interviewee’s mental processing, non-verbal
cues help the interviewer to understand the interviewee’s feelings specific to the
interview. When the interviewer notices that the interviewee’s limbs are shivering or
not stable, the recruiter assumes that the interviewee is nervous. This might not create
a good impression about the interviewee during the hiring process. The commonly
noticed non-verbal cues are posture & movements of the interviewee. For example,
slouching during an interview is not desirable; sitting erect acts as a power pose &
shows that the interviewee is exhibiting confidence; when candidate sit with one leg
on top of the other, the interviewer assumes that the candidate lacks humility & might
be considered arrogant. This works both ways. When the interviewer does not sit in
recommended postures & exhibit welcoming gestures, it intimidates the candidate
who assumes the interviewer is arrogant or disinterested in learning more about the
interviewee & whether he or she is a good fit to the company.

Biases in Hiring Process:

We all have an intrinsic belief system called cognitive bias, which leads to systematic errors
in judgement. Most managerial decisions, including those made during the recruitment
process, are tainted by bias. Eliminating cognitive bias from the hiring process can result in a
more productive and diverse workforce. Though we cannot make perfectly unbiased
decisions, we may examine the ways in which biases influence decisions in attempt to reduce
them.

1. Halo-Horn Effect:
This is the inclination to like (or loathe) everything about a person right away,
especially when it comes to features or skills you haven't seen or analysed, mostly
based on first impression. When a hiring manager gets a positive opinion of a
candidate during the recruitment process, it can be extremely difficult to change that
view, and as a result, the manager may overlook a number of flaws in that individual.
The Horn Effect is the inverse of the Halo Effect. A person may be judged unsuited
for a job based on a single presumptive trait in this situation.
2. Information Bias:
People have a propensity to believe that more knowledge is always better for making
accurate decisions. This leads to information bias during hiring process. During the
hiring process, managers mind urges to obtain as much information as possible about
a prospect. In every case, however, our brain is incapable of objectively determining
which information is relevant and which is not. When evaluating candidates, quality
should take precedence over number. If you're sure you know what you're looking for,
less information may be preferable to ensure you're not swayed by a few bits of
'irrelevant' data.

3. In-group Bias:
The tendency for people to favour their own group over that of others is known as in-
group bias. To put it another way, once you feel like you belong to a group, you tend
to favour members of that group over non-members. This usually happens during the
recruiting process when the candidate belongs to the same group or community as the
hiring manager. This can also happen if the manager and the candidate belong to same
school or college.

4. Anchoring Bias:
Anchoring bias is a cognitive bias in which we place too much weight on the first
piece of information we are given about a topic. This occurs if hiring manager
compares one candidate with the other, if the second candidate is better than the forst
one, he will consider him neglecting other aspects.

5. Expectation Bias:
 The hiring manager goes through a lot of applications,thus there's a potential that he'll
build an expectation when he comes across a decent one. As a result, the manager's
opinion of the candidate may be influenced by this performance expectation, and the
manager may miss certain obvious shortcomings in the candidate.

6. Framing Bias:
Framing bias is when people make decisions based on how information is presented
rather than the information itself. This can hamper the recruiting process because it
excludes vital outside perspectives. Candidates' experiences or responses may be
framed in a more positive or negative light than reality, which might influence
whether or not they are offered a job.

7. Confirmation Bias:
This bias happens when a person has a preexisting belief or opinion and then seeks
facts to support that thought or opinion. As a result, the manager may ask irrelevant
questions in order to reinforce his initial assumption. Thus, structured interviews are
crucial in this regard.

8. Bandwagon Effect:
People will sometimes do things just because everyone else is doing it. Assume that
managers must make a critical decision. The majority of the managers are in support
of one option. Some people have real reservations about it, but because of groupthink,
they may not speak up.

After Hiring Process (Motivating the employees):

After a successful hiring process, the next leg is to think how to retain employees in the
organisation so that the invested amount and human efforts don’t go in a wrong direction.
The most obvious solution to this is to keep employees motivated and know their needs in
order to feel the connected or wanted in the organisation. Knowing their preferences about
what they expect in terms of learning and for their personal life will give them a feel that yes
the organisation care about them. When it comes to job satisfaction, financial rewards may be
lower on the list than most people think. Being happy with your job often depends more on
intangibles such as feeling part of a team and feeling valued and appreciated. In fact, these
factors consistently outrank money when employees are polled about job satisfaction. Also in
a survey conducted, it is proven that motivated employees tend to surge the productivity of
the organisation by 31%. So in order to retain employees in the long run motivation plays a
key role. There are various motivation theories that cater to the needs of employees in the
short and long run. Looking in the various theories of motivation will give a perspective
about the employee needs and wants. This will help in targeting the right path towards a
successful employee retention through motivation. There are certain expectations from the
employees from their organisation and vice-versa, just as in the case of a weigh balance.
There are certain inputs and outputs that are expected, and to attain the equilibrium position
one needs to match the inputs to the outputs, the analogy holds true even for the employee
and his/her organisation. So, in order to have some preferences for motivating employees we
need to deep dive into their hierarchical needs and then react accordingly. The Motivation
Theories are of utmost importance in order to gauge the hierarchical needs of the employees,
here we are going to discuss some of them and gauge how they drive the interest of the
employees.

Maslow’s Hierarchy of Needs:

This theory basically focus on the fulfilment of a person need in order to keep him/her
motivated in the short as well as in the long run. The need starts from the basic primary needs
and keeps moving up as the lower level need are fulfilled. The levels are divided as

 Physiological:  Physical survival necessities such as food, water, and shelter.

 Safety:  Protection from threats, deprivation, and other dangers.
 Social (belongingness and love):  The need for association, affiliation, friendship, and
so on.
 Self-esteem:  The need for respect and recognition.
 Self-actualization:  The opportunity for personal development, learning, and
fun/creative/challenging work.  Self-actualization is the highest level need to which a
human being can aspire.
The leader will have to understand the specific need of every individual in the team and
accordingly work to help fulfil their needs. This will make them more inclined towards the
organisation and feel connected. In this way, by motivating employees, we can retain them
for a longer period of time.

Hertzberg’s two factor theory:

This theory divided the needs into two broad categories namely hygiene factors and
motivating factors Hygiene factors are needed to make sure that an employee is not
dissatisfied. Motivation factors are needed for ensuring employee's satisfaction and
employee’s motivation for higher performance. Mere presence of hygiene factors does not
guarantee motivation, and presence of motivation factors in the absence of hygiene factors
also does not work.

Employee motivation is what drives good employees to do great things. Understanding the

importance of motivation within your workforce is one of the most important parts of running
a successful business. This will ensure the next leg i.e. keeping employee motivated after
hiring process.
References:

https://businesshub.santanderbank.com/leading-your-business/hiring-methods-to-avoid-cognitive-
biases/

https://blog.staffingadvisors.com/5-cognitive-biases-that-get-in-the-way-of-hiring

https://www.verywellmind.com/the-myers-briggs-type-indicator-2795583

[1] https://www.knowledgehut.com/tutorials/project-management/motivation-theories

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