Chapter 6 Selecting Employees Who Fit Selection Strategies and Methods Employee Selection The process of testing and gathering information to decide whom to hire Aligning Talent and HR Strategy Short Term Generalists Little need for fit potential and dependability Workers hired to produce general labor inputs for a relatively short period of time Bargain Laborer External Cost Leadership HR Strategy Provide a variety of different simple inputs but do not have areas of special skill or ability Most positions are filled by hiring people from other organizations The objective identify and hire employees to produce low cost goods and services Benefits costs as low as possible they are asked People without specialized skills don t generally demand high compensation which keeps payroll Because they lack specific expertise they also are willing to work in routine jobs and do whatever The number of employees working for the organization can be flexed up or down as demand for goods and services increases or decreases Work procedures are simple and employees who demand higher wages are simply replaced by new workers Long Term Generalists Workers hired to perform a variety of different jobs over a relatively long period of time Need for organization fit potential and motivation Are individuals who have developed skills and knowledge concerning how things are done in a Loyal Soldier Internal Cost Leadership HR Strategy specific situation HR strategy is focused on keeping employees once they are hired Benefits Lack of specific expertise allows firms to reduce payroll costs Employees have developed skills and abilities that are only valuable to a specific organization which reduces the likelihood that they will move to another employer Reduction in recruitment selection and training expenses Because they stay long they tend to develop relationships and form a strong sense of commitment to the organization Long Term Specialists Workers hired to develop specific expertise and establish a lengthy career within an organization Need for organization fit and job fit Potential for specific expertise Committed Expert Internal Differentiation HR Strategy People who have an expertise in a particular area o Ex Accounting 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 Hiring people who can develop specialized skills over time enables organizations to create and keep a unique resource of talent that other organizations don t have Employees are given the time and assets to develop the skills they need to be the best at what they do and add value back to the organization Benefits Short Term Specialists Workers hired to provide specific labor inputs for a relatively short period of time Need for job fit achievement Employees who provide specific inputs for relatively short periods of time Free Agent External Differentiation 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 Benefits acquire the skills Employees provide services for relatively short periods of time Allow the organization to quickly acquire needed expertise without waiting for new hires to The organization pays premium dollar for this knowledge and skill but makes no long term commitments so both parties can end the employment relationship at any time Making Strategic Selection Decisions Balancing Job Fit and Organization Fit Job based fit is matching an employee s knowledge and skills to the tasks associated with the specific job Organization based fit is matching an employee s characteristics to the general culture of the organization o The individual s characteristics match the broader culture values and norms of the firm Balancing Achievement and Potential Achievement is a selection approach emphasizing existing skills and past accomplishments Potential is a selection approach emphasizing broad characteristics that foreshadow capability to develop future knowledge and skill Gaining Competitive Advantage from Alignment Develop a competitive advantage by identifying and hiring employees who fit their needs and strategic plans What works for your specific organization might not work for others What Makes A Selection Method Good Reliability Is it consistent Test Retest Method is a process of estimating reliability that compares scores on a single selection assessment obtained at different times Alternate Forms Method is a process of estimating reliability that compares scores on a different versions of a selection assessment Split Halves Method is a process of estimating reliability that compares scores on two parts of a selection assessment Inter Rater Method is a process of estimating reliability that compares assessment scores provided by different raters Correlation Coefficient is a statistical measure that describes the strength of the relationship between two measures Validity Is it related to performance The quality of being justifiable To be valid a method of selecting employees must accurately predict who will perform the job well Content Validation Strategy is a process of estimating validity that uses expert raters to determine if a test assesses skills needed to perform a certain job Criterion Related Validation Strategy is a process of estimating validity that uses a correlation coefficient to determine whether scores on tests predict job performance o Predictive Validation Strategy is a form of criterion related validity estimation in which selection assessments are obtained from applicants before they are hired o Concurrent Validation Strategy is a form of criterion related validity estimation in which selection assessments are obtained from people who are already employees Generalizability is the extent to which the validity of an assessment method in one contest can be used as evidence of validity in another context o Situational Specificity is the condition in which evidence of validity in one setting does not support validity in other settings o Validity Generalization is the condition in which evidence of validity in one setting can be seen as evidence of validity in other settings Measuring Job Performance General Mental Ability and Job Performance o General Mental