Human Resource Management

MN3211
Chapter 2: Recruitment and Selection

Praba Nair

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© 2022 Singapore Institute of Management Group Limited
Recruitment & Selection

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Chapter 2: Recruitment and Selection
Aims
The aim of this lesson is to introduce recruitment and selection.
Learning Outcomes
} Define recruitment and selection and describe the difference between
the two..
} Explain how organisations locate their people and recruit or select.
} Discuss theoretical perspectives that inform recruitment and selection.
} Describe how “fit” is communicated to applucants via recruitment and
selection tools.
} Discuss how selection methods are determined and how success is
measured.
} Review the implications of emerging technologies.

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Recommended Reading
} Torrington, D., et al. 2020, Chapter 8 “Recruitment in human resource
management” (11th ed.). Pearson.

} Torrington, D., et al. 2020, Chapter 9 “Selection methods in human resource

management” (11th ed.). Pearson.

} Lievens, F., & Slaughter, J. E. (2016). Employer image and employer branding:
What we know and what we need to know. Annual Review of Organizational
Psychology and Organizational Behaviour, VOL 3, 3, 407-440.

} Potočnik, K., Anderson, N. R., Born, M., Kleinmann, M., & Nikolaou, I. (2021).
Paving the way for research in recruitment and selection: recent developments,
challenges and future opportunities. European Journal of Work and
Organizational Psychology, 30(2), 159-174.

} Van Vianen, A. E. (2018). Person–environment fit: A review of its basic tenets.

Annual Review of Organizational Psychology and Organizational Behavior, 5, 75-
101.

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Recruitment and Selection Definitions
} Recruitment – “includes those practices and activities
carried out by the organisation with the primary purpose
of identifying and attracting potential employees”
(Breaugh & Starke, 2000, p. 45).
} Selection- applying specific techniques in the hiring
process to select and appoint a competent person.
} Recruitment and selection are dynamic processes that
shift with each organisation and role.

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Internal and External Labour Markets
} Organisations have two options to fill job vacancies:
1. Develop existing staff through extensive training and development and
providing career development opportunities
2. Recruitment from the external labour market
} There are several advantages and disadvantages of both options.
} All organisations hire from outside to fill vacancies at the lowest job
level. Subsequently, the choice is promoting from within and hiring
from outside.
} In an internal labour market, the organisation promote current
employees to higher positions. Jobs above entry level are filled by
internal staff.
} Some organisations, such as the military and specific public sector
organisations, operate on a strict labour market.
} Partial ILM: Some firms may prefer internal candidates but hire some
people externally.
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Advantages of Internal Labour Markets
} Lower cost of recruitment.
} Provides career progression for employees and thus raises
their motivational levels and retention.
} Organisations can invest in staff development.
} Employees are knowledgeable about the organisation and,
therefore, have a shorter learning curve than someone
recruited externally.
} Reduces the risk in selection as the organisation is familiar with
their employees.
} Reduced staff turnover – save on recruitment and training
costs.
} Flexibility in job roles.
} Higher commitment demonstrated.
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Disadvantages of Internal Labour
Markets
} Restrict the size of the talent pool.
} Organisation innovation is limited as less exposure to new
and innovative working methods.
} Diversity can be limited.
} Organisational change can be challenging to implement
as employees become similar in their thinking and
behaviour especially when they are not exposed to
changes.

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Advantages of External Labour Markets
} The organisation has a broader pool and can recruit well-
qualified candidates from the external labour market.
} The organisation is in touch with the external market
wage structures.
} Promotion might be based on merit rather than seniority.
} Specialised knowledge acquired by the employees can be
utilised rather than unused due to promotion to a senior
position in an internal labour market. candidates from the
external labour market.

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Disadvantages of External Labour
Markets
} Lack of motivation from internal employees who could be
higher performers.
} Additional training may be necessary for new employees.
} New employees may require more time to adjust to the
organisation.
} Selection processes must be rigorous as the organisation
is unfamiliar with the candidates.

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Recruitment Methods
} Internal promotions
} Transfers
} Job rotations
} Re-hiring
} Print media
} Agencies
} Campus recruitment
} Online
} Professional connections
} Walk-ins
Organisations may use a combination of these methods. The use of
recruitment tools may vary based on the role. The rise of technology
and AI has enabled recruiters to proactively find a range of candidates
who may not have previously been accessible.
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Perspectives on Fit
Person – Environment Fit
} The degree to which individual and environmental characteristics
match.
} Focus on the similarities between individual characteristics (e.g.,
individual values, goals, personality and interests and organisational
characteristics such as the organisation's values, goals, culture and
norms.
} High levels of person-environment fit can lead to the retention of
employees.
} An organisation needs to communicate their values, goals and culture
in their recruitment activities so that applicants can assess their
compatibility with the organisation's characteristics.
} The organisation should also assess the extent to which the individual
is compatible.
} The actual fit between a person and the environment strongly predicts
positive outcomes.
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Perspectives on Fit
Supplementary Fit
} It is related to value or personality congruence, i.e., person-
organisation(PO) fit.
} Occurs when an individual possesses characteristics like
others in an environment.
} High-value congruence implies a strong culture and shared
values among co-workers.
} It can translate to increased trust and a shared sense of
corporate community.
} It leads to reduced staff turnover, increased employee
citizenship behaviours and employee commitment.
} The attraction-selection-attrition theory states that individuals
are attracted to and seek to work for organisations where they
perceive high levels of person-organisation fit.
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Perspectives on Fit
Person-Job Fit or Complementary Fit
} Complementary fit refers to the extent to which the job characteristics meet the
employee's needs (needs-supplies fit)
} The extent to which employee knowledge, skills and abilities meet the job
demands is called demands-abilities fit.
} Needs supplies fit and demand-ability fit are two aspects of person job (PJ) fit.
} PJ fit or complementary fit occurs when an individual's characteristic make whole
the environment or add to it what is missing, i.e., an individual adds strength to a
deficient environment with the addition of his or her resources (time, effort,
knowledge, skill or ability)
} Both needs, supply demands and abilities fits are associated with job attitudes,
such as employee turnover intention, job satisfaction, and organisational
commitment.
} Between the two, need-supplies fit has the most significant impact on employee
job attitudes.
} Demand-abilities fit may be more important for performance and less critical for
employee job attitudes, stress, and stressful outcomes.

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Perspectives on Fit
Attraction-Selction-Attrition Model (ASA Model)
} The ASA model (Schneider et al., 1995) promotes supplementary fit with emphasis on
the importance of the recruitment and selection process in contrast to the PE fit model.
} ASA theory focuses on organisations as defined by the characteristics of the people in
them.
} The organisation and its culture and values reflect the founder's personality. The
organisational and HR practises and policies are determined based on these.
} The model explains that people are attracted to, selected by and stay in organisations
that match their attributes. Potential employees are attracted to firms with similar
personalities, attitudes and values, and organisations select candidates based on
compatibility. Employees stay in organisations that fit their attributes. If not, the
employee will leave the organisation.
} The ASA model determines the type of people in organisations. Employees are
homogeneous regarding behaviour, personalities, and values. The ASA model would
suggest slight variation within firms, yet there would be variation across firms.
} HR needs to consider the tools to select the right fit. The organisation may attract and
select a specific type of individual. However, this may be different from what the
organisation wants.
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Communicating Fit
} It is crucial to communicate clearly to applicants their fit
requirements. These can be communicated throughout both the
recruitment and selection processes.
} Within the recruitment process, fit can be communicated in a
variety of ways:
} Job description
} KSA Framework
} Person specifications
} Competency specifications – role-specific behaviours that are required
for successful performance of the role
} Within the selection process, fit can be communicated
in a variety of ways:
} Job interviews
} Selection methods
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Employer Branding
} Marketing technique organisations use to communicate to the public
what it can offer to current and future employees.
} It is the employee value proposition (EVP):
‘A set of attributes and qualities – often intangible that make an organisation distinctive,
promise a particular kind of employment experience and appeal to people who will thrive
and perform their best in its culture’. (CIPD, 2021)
} It taps into the intrinsic motivation or value systems of prospective
candidates.
} It is one way to differentiate an organisation from its competitors.
} It also serves as a tool for employee sense-making.
} Employer branding is influenced by the reputation as an employer and
the reputation as a provider of goods and services.
} The organisational treatment of other stakeholders, such as the
environment and community, also matter for branding.
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How is a brand created?
} It must determine to what extent organisational core values support the brand and
ensure core values are expressed in a brand presentation. Also, there must be
alignment between the employer's statements and practice in the workplace.
} Organisations need to benchmark themselves relative to other firms and competitors to
gain ideas to enhance their branding.
} Organisations can evaluate their performance against their promised employee value
proposition to various stakeholders, such as employees and prospective employees.
} Organisations must consider what content to include in their employer branding
statements and materials. Williams and Dreher (1992) have found that:
} percentage of compensation allocation for benefits is positively related to the size of the applicant pool
} pay level is positively related to acceptance rates
} benefit levels are negatively related to the number of days to fill a position

} Turban & Greening's (1997) study provides evidence that corporate social performance
(CSP) ratings are related to employer attractiveness.
} Jones et al. (2014) prove that employer branding content matters to applicants,
particularly to CSP.
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Recruiter perceptions of PO and PJ Fit
} Recruiters play an essential role in the screening, interviewing, and decision-making
processes.
} Depending on the organisation, recruiters may be closely aligned with the hiring
managers on the qualities needed in an ideal candidate. At other times, the standards
for an ideal candidate may vary and be based on the recruiter's preferences. A recruiter
may face a dilemma between person-job (PJ) fit and person-organisation (PO) fit.
} Recruiters may decide against candidates early in the interviewing process because of
a perception of a lack of fit for either the job or the organisation (Kristof-Brown,2000)
} There is no standard across recruiters of what makes an applicant a good PO or PJ fit.
} Recruiters must understand the job requirements in the interview process. This ensures
consistency in KSAs, values, and personality assessments throughout the interview
process.
} Recruiter perceptions of PO and PJ fit matter as both PO and PJ fit will lead to recruiter
hiring recommendations.

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Selection Criteria
} Qualifications required for the job
} Areas of key competence relevant to the job
} General knowledge and skills
} Formal training or education completed
} Prior work experience
} Interpersonal skills

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Selection Methods
} The appropriateness of selection tools has to be evaluated.
} It is essential to determine whether the selection tools can gather information about
candidates:
} In a reasonable timeframe
} At a reasonable cost

} Each role is unique and will require a different selection method to find the best
candidate.
} In-person interviews – Interviews tend to be either structured or semi-structured.
} Experience days/work simulations –candidates may be asked to perform tasks or
undertake assignments as part of the activities used to assess their fit and readiness for
the position
} Work samples – demonstrate a candidate's past performance, unlike work simulation.
} Situational judgement test (SJT) –candidates are given a variety of scenarios and are
asked to either select from multiple choice responses on a written test or enact their
responses in a simulation,
} Group interviews –provide a different perspective of candidates being evaluated.
Assignment test –candidate is given a finite period to complete the assignment.

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Strengths and Limitations of Selection
Methods
} According to Armstrong (2006), a selection tools can be evaluated:
} Whether it discriminates well candidates.
} Able to interpret a candidate’s score in relation to another;
} The tool is reliable;
} The tool is valid.
} Validity and reliability are essential when choosing a selection method
} Reliability refers to the consistency of the selection method,
} Validity refers to whether or not the assessment truly measures what it
is intended to measure. Predictive Validity is the degree to which a
selection tool or test score can correctly predict future behaviour or
performance.

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Strengths and Limitations of Selection
Methods
} Schmidt and Hunter (1998) assessed the predictive validity of various
selection methods.
} Robertson and Smith (2001 found that personality assessments, when
used in the selection process, were found to have a predictive validity
} Using a combination of intelligence tests and structured interviews,
organisations can select an appropriate candidate.
} The larger the validity estimate, the greater confidence one has in
predictions made from the test or combination of tests.

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Challenges in Selection
Applicant Misrepresentation
} Candidates can misrepresent themselves to provide socially desirable
answers e.g., on personality, inventories, or in interviews.
} In-person assessments can minimise this as the applicant is
completing these assessments on site.
Unconscious) Bias
} Possibility of discrimination based on race, gender, age, religion,
and disability status.
} The Four-Fifths rule can be used to discern the presence of
discrimination.
} Removing these biases, however, is a huge challenge. Some
solutions to minimise these:
} Implicit bias awareness training
} Blind selection
} Standardised templates and AI automated process

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Cross cultural equivalence of selection
tools
} Important for MNCs who have presence in multiple
nations
} Need to determine whether recruitment and selection tools
fit all applicants and all contexts in which the organisation
has a presence.

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One size fits all
} Should the organisation create unique practices for each context, given that
cultural values, belief systems, and legal systems or laws may differ?
} Using technology to screen applicants' social media profiles may be invasive.
} Predictive analytic tools tend to look for patterns and identify an ideal profile to
capture desired employee behaviour to determine enhanced engagement or
decreased withdrawal.
} Tools are available to determine whether an applicant will succeed in a role
before measuring their contribution.
} Organisations must be mindful that these are only patterns. Potential
employees who do not fit a particular profile may perform just as well.
} There is a danger of creating a homogeneous workforce that fosters
groupthink and limits creativity and innovation.
} Organisations run the risk of stereotyping and discrimination, which has legal
implications and a negative impact on the employer's image.

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Artificial Intelligence in Selection-Related
Decision Making
} There is a risk for unfair, biased, and prejudiced decisions to be made. Algorithms are
only as bias-free as the algorithm developer, and data is utilised to help make the
decisions.
} Decisions based on historical norms are typical and contribute to adverse impact risks.
} Organisations must be mindful of how these tools impact other stakeholders and their
perceptions of fairness and justice.
} Machine learning can only determine correlations and not causation. Employers cannot
unquestioningly accept the decision being made by these artificial intelligence tools.
} Out-of-the-box, off-the-shelf digital tools may need to be more helpful. These solutions'
algorithms may be based on what worked for other companies to predict. What works
for one company may not necessarily make sense or work for another.
} Employers should ensure that the algorithms utilised in the data they use to make
decisions are explainable, auditable, accountable, and transparent to all stakeholders.
} Artificial intelligence systems are merely tools and should be designed to benefit
employees and organisations.

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Evaluation of Recruitment and Selection
Processes
} While measurements of success in organisations for finance or accounting may be
relatively easy, measuring success in the "people" can be challenging.
} Recruitment and selection processes can be evaluated separately or together.
} Measures such as the time to fill a position are used to assess the length of time for the
hiring process. Such measures can be used to evaluate the HR team's efficiency and
effectiveness. It can also highlight the difficulty of attracting talent.
} Cost per hire calculates the cost of human, financial, and other resources in the hiring
process.
} Other metrics, like quality of hire, may take longer to evaluate.
} Metrics like applicant satisfaction can be used to evaluate the recruitment process. If
surveying unsuccessful candidates, HR needs to appropriately collect data while being
sensitive to the candidates who were not selected.
} Emerging technology and artificial intelligence (AI) can be used to design the selection
process and evaluate an organisation's recruitment and selection strategies.

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Thank you

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