MOS 3384 - Textbook notes 1-5.docx

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Management and Organizational Studies
Management and Organizational Studies 3384A/B
Karen Mac Millan

MOS 3384 – Textbook Notes Chapter 1 – An Introduction to Recruitment and Selection (R&S)  Why recruitment and selection matter o Best practices  valid, reliable, and legally defensible o DDI  Development Dimensions International – global talent management company o Monster – electronic job board that millions of job seekers and companies have used o Best practices – supported by empirical evidence that has been accumulated through accepted scientific procedures  Ethical treatment of job applicants throughout the recruitment and hiring process  Accepted standards and principles of professional associations  Do not have to be PERFECT practices  Employers must be able to show that their procedures are fair and do not discriminate against protected groups  Adds value to the organization and contributes to the success o Example of a Human Resources System – DIAGRAM 1 – look at paper o Recruitment  the generation of an applicant pool for a position or job in order to provide the required number of candidates for a subsequent selection orpromotion program  Must meet management goals and objects and also current legal requirements o Selection  the choice job candidates from a previously generated applicant pool in a way that will meet management goals and objectives as well as current legal requirements  Hiring at any entry level from external applicants  Promotion or lateral transfer of people within the organization  Movement of current employees into training and development programs o Best practices in R&S:  Reduce employee turnover and increase productivity  Are responsible for up to 15% of the firm’s relative profit  Correlate with an organization’s long term profitability and productivity ratios  Help to establish employee trust  Improve the knowledge, skills, and ability of an organization’s current and future employees, increase their motivation, and help to retain high qualified employees while encouraging poor performers to leave o Progressive HR practices lead to greater organizational commitment and motivate employees to exhibit proper behaviour  lower compensation costs, higher quality work, and higher productivity  Socioeconomic factors affecting R&S o Global competition  More than half of what is produced in Canada is EXPORTED  vulnerable to foreign conditions  Changed the LEVEL OF COMPETITION  Canadian businesses must continually work on improving their competitiveness in providing goods domestically and internationally o Rapid advances in technology and the internet  Employees now expect new hires to be computer literate  A lot of recruiting now is done through the internet – eg. Most Government jobs  The benefits of e-recruiting are access to a larger pool of candidates, lower recruiting costs, eliminating print costs and print media deadlines, and capability of tracking results immediately o Changing workforce demographics  Population of seniors is GROWING and working age is DECREASING  Biggest change in Canadian workforce  the abolition of mandatory retirement at age 65  During recession, the addition of post-65 workers leaves less room for hiring new entry-level employees  65+ may present a very experiences applicant pool when the number of young workers is decreasing  HR will have to develop policies that deal with the recruitment, selection, evaluation of older workers  Workforce is more gender balances  Workforce is more highly educated  Labour force is culturally diverse – women and visible minorities make up a significant % of entrants into an increasingly older workforce – oversees experience and natural trade links with international markets  valuable  Growing population of people who have physical or mental challenges o The economic context  Economic booms  skilled labour shortages  Economic slowdowns  cutbacks in jobs, pay, benefits, or hiring freezes – many qualified people looking for jobs but a lot more unqualified people as well  Critical labour shortages  more focus on recruitment and less on selection  Over-supply of labour  less emphasis on recruitment and more selective in hiring o Type of organization  Public sector  formalized R&S systems, highly unionized  Private sector  procedures vary by type and size of business or industry  Small or family-run businesses informal, might not have resources to implement sophisticated hiring systems, tend to rely on family and friends, unstructured interview o Organizational restructuring  Non-age related layoffs and early-retirement incentive packages  Restructured or downsized  Pyramid structure (large # of employees at the bottom)  becoming less, being flattened  Seller’s market  emphasis on recruitment b/c more organizations compete tohire fewer qualified candidates o Redefining jobs  May face at least 3-4 career changes  Workers must possess the skills and knowledge of at least 2-3 traditional employees – may be asked to rotate positions o Best practices  Old ways or hiring on the basis of a resume and a brief interview will not work  Must have HR strategies for R&S in place  A systems view of HR o Two basic principles:  Principle 1: HRM must carefully coordinate its activities with the other organizational units and people if the larger system is to function properly  Principle 2: HR managers must think in systems terms and have the welfare of the whole organization in mind o If R&S are done properly  the movement of the worker through the org system is made easier and the individual makes a long-term positive contribution to org survival and success  R&S and the HR profession o HR staff must be aware of internal and external influences that affect the working environment o HR staff are professions who must keep abreast of developments in their field through continuous learning – know the latest legal and scientific info  Links to professional associations involved in R&S o Canadian Council of Human Resources Associations (CCHRA)  9 associations collaborated  MISSION  establishing national core standards for the HR profession and being the recognized source on equivalency for HR qualifications across Canada  Membership qualifications  completion of education and training as described under their professional certification requirements; student memberships only for those taking approved courses in a degree program  Professional certification offered  CHRP (certified HR professional) – to receive this, may have to complete accredited courses, have had supervised professional experience in HR o Canadian Psychological Association (CPA)  Links to provincial associations, regulatory bodies, and psychology programs  Membership qualifications  Masters or PhD degree in Psychology  Professional certification offered  don’t offer professional designations – to receive the designation “psychologist”, must be registered with a provincial regulatory body after meeting requirements o The CHRP edge  6 characteristics that define a profession:  Common body of knowledge  Agreed performance standards  Representative professional organization  External perception as a profession  A code of ethics  Agreed certification procedure  First have to join CHRP provincial association and then pass a knowledge exam  After some HR experience, must do a 2 exam or have the experience reviews by a panel  CHRP identifies one as possessing the required knowledge and skills and as someone who will behave ethically  Have an edge in getting jobs, keeping jobs, financial compensation, stakeholders’ perception of their achievement  An introduction to ethical issues and professional standards o Ethics  the determination of right and wrong; thestandards of appropriate conduct of behaviour for members of a profession: what those member may or may not do  National Code of Ethics of the Canadian Council of HR Associations  commit to the values of respect for human dignity and human rights, and promote human development in the WP, within the profession and society as a whole  CPA’s Code of Ethics for Psychologists  respect for dignity of persons, responsible caring, integrity in relationships, and responsibility to society  Ethics is a complex matter and has the potential to be a weakness of a promising HR career o Professional standards  provide guidance on how HR professionals should behave in certain situations including the use of employment tests  Offer advice on things such as appropriate use of employment tests, the standards that different tests must meet, and qualifications of those using the employment tests  CHRP ethical code:  Support, promote, and apply the principles of human rights, equity, dignity, and respect in the WP, within the profession, and in society as a whole  Adhere to any statutory acts, regulations, or bylaws that relate to the field of HRM  Not knowingly engage in or condone any activity orattempt to avoid the clear intention of the law  Strive to balance organizational and employee needs and interests in the practice of the profession  Applicant testing o Ethical dilemmas frequently occur during the testing of job applicants with various selection tools  Psychological testing o An employment test (including interviews  simply a means of obtaining a sample of work-related behaviours under controlled situations o Psychological testing  one of the oldest and mostcommon methods used  Use of employment tests o Usually more applicants than there are positions to be filled o Employer believes that applicants differ with respect to essential KSAOs and wishes to measure these individual differenced to meet the goal of hiring the best qualified people o Tests must accurately assess the individual’s capacity to perform the essentialcomponents of the job o Bona fide occupational requirement (BFOR)  Testing standards o Only tests that hold any value  must meet professional standards o Measure characteristics in a reliable and valid manner o Must be fair and unbiased  Professional guidelines o Anyone using tests must be familiar with professional standards o Standards for Educational and Psychological Testing o Principles for the Validation and Use of Personnel Selection Procedures o Uniform Guidelines on Employee Selection Procedures  Who can test? o Reputable test publishers require purchasers to establish their expertise in using a test before allowing its purchase – help protect public against the misuse of tests  Cautions o Rights that must be respected:  Informed consent  must be told why they are being tested; must be told that these results might be provided to a prospective employer; given general info about the types of tests they will be asked to take; the testing process; scoring procedures; intended use of the test; testing policy; and procedures for protecting confidentiality  Access to test results  should receive feedback on their test performance in nontechnical language; avoid use of labels or terms that may stigmatized the applicant  Privacy and confidentiality  info that is provided during the test must be kept private; must be informed of how the info will be used and who will have access to it BEFORE info is provided  Language and culture  right to be tested in a language in which they are fluent; no guarantee that a test developed in one language will produce meaningful results when given to people from a different linguistic or cultural background; translation must capture the cultural differences; giving the test to those who don’t have a good understand of the language of the test will also lead to bias; test translation will become more of an issue as business operate globally in many languages  Bias: systematic measurement errors that are related to aspects of group membership o Other considerations: disability  Disabling condition cannot be used to screen out applicants UNLESS it can be demonstrated that the ability in question is abonafideoccupational requirement  Disabling conditions must be considered as part of selection testing  The test is given to the applicant in a way that accommodates the disability o Other concerns: Reliability and validity issues  HR managers justify NOT using employment tests by noting:  The reliability of a test may be affected by items that may be misunderstood  Lack of uniform testing conditions  Variations in instructions  Lack of rapport between candidate and test administrator  Improper test items o Using tests developed in the US  Most of the tests have been developed and validated on workers in the US  valid?  Tests that are valid for anoccupational category in the US should also be valid for the same category in Canada  Any test (no matter how valid and reliable) – can still provide inaccurate info and should not be used in isolation  Info gained from employment tests should be compared to other info gathered Chapter 2 – Foundations of Recruitment and Selection I – Reliability and Validity  The Meiorin Case – Woman firefighter who could not pass the test; went to court for it and proved it is physically impossible for women to be able to increase their aerobic capacity to the level required; had done the job well in the past  JOB ANAYSIS – Diagram 2 – on paper  The recruitment and selection process o Employer must have a good idea of DUTIES that will be performed as part of the job and the LEVEL of performance required for job success o KSAO – Knowledge, skills, abilities, and other attributes o ASSUMPTION – higher levels of attributes are linked to higher levels of job performance  The hiring process o Police Selection Process  Completion of application and submission of documents  Three hour written exam  Panel interview  Background investigation  Psychological and medical exam  Selection panel o When a position becomesopen, the employer may vaguely have an idea of what the job tasks include and what the requirements expected from the applicant o Difference is whether the job duties and position requirements have been determined through a systematic investigation or whether they represent a guess in the part of the HR department o Applicants submit resumes after a preliminary screening o Some are interviewed o Based on applicants file and references – impressions formed during interview o Employer makes a decision to hire - can reflect their intuition or personal preference o Collecting info from candidate that may in fact not be related to the job or be of questionable quality o Far too many HR interventions are based on intuition rather than empirical support  Science versus Practice in Selection Science Based Selection Practice Based Selection Type of Process Analytical Intuitive ‘ Job analysis identifies KSAOs ‘ Untested approaches ‘ Select valid measures of KSAOs ‘ “Fad” based selection system ‘ Validate predictors and assess utilit‘ Lack of use of reliable and valid selection tools ‘ Retain valid and useful predictors ‘ Techniques and selection tools chosen on the basis of marketing ‘ Selection procedures used are rarely validated Decision making Rational Gut-feel Implementation System-wide Case by case basis Evaluation of process Empirical Subjective Why is it used? ‘ Structured procedures ‘ Comfort with the process ‘ Consistent process ‘ Flexibility and speed ‘ Maintains standards ‘ Fits organizational culture Potential outcomes ‘ Defensibility of system ‘ human rights litigation ‘ Increased productivity ‘ lack of competitiveness ‘ effective employees ‘ marginal employees  A selection model o Job/work analysis  identifies the tasks and behaviours that make up a job o KSAOS  that contribute to performance of these tasks and behaviours o Constructs  an idea or concept constructed or invoked to explain relationships between observations – abstractions that we can infer from observations and that we cannot directly observe o KSAO constructs used to develop predictor and criteria data before they can be used to select job candidates o Past work history and experience  applicant form, candidate’s resume or interview o Ability to deal with stressful situations  personality and situational interview o Expert judgement or empirical validity  must support the use of a predictor measure as representative of a KSAO construct  The legal environment and selection o Employment equity programs  a term coined in the 1986 federal Employment Equity Act referring to policies initiatives to promote employment opportunities for members of designated minority groups  Building a foundation o 2 elements in building a sound foundation for R&S:  The system must be based on strong empirical support – must be valid and reliable  Any selection system must operate within legal context  Reliability o The degree to which observed scores are free from random measurement errors; is an indication of the stability or dependability of a set of measurements over repeated applications of the measurement process o Errors may be unpredictable o Errors may be systematic – be made in a consistent or predictable fashion – thus, not VALID  Do not affect the accuracy of the measurements butrather the meaning  Interpreting reliability coefficients o Reliability  variability of a set of scores o Any observed score is a combination of a true score and an error score  True score – the average score that in individual would earn on an infinite number of administrations of the same test or parallel versions of the same test  Error score (measurement error) – the hypothetical different between an observed score and a true score – the magnitude of error score is unrelated to the magnitude of the characteristic o If the measuring instrument is not very accurate – if it adds large random error components to true scores – the VARIANCE of the measured scores should be much LARGER than the variance of the true scores o The systematic error doesnot affect the reliability coefficient  the scores are very RELIABLE but they not do not give the actual data – VALIDITY  Measurement error o Hypothetical different between an individual’s observed score and the individual’s true score o Whether systematic or random  reduces the usefulness of any set of measures o Must consider the possible sources of error, the size of error, the degree to which observed scores would reoccur in another setting or with other employees o Standard error of measurement  statistical index that summarizes info related to measurement error  Reflects how individual score varies over repeated observations under identical conditions  Factors affecting reliability o 3 broad categories:  Temporary individual characteristics  Factors such as health, motivation, fatigue, and emotional state can introduce temporary, unsystematic errors into the measurement process  Students often attribute lower-than-expected testperformance to many of these factors  Lack of standardization  Changing the conditions under which measurements are made introduces error  Chance  Factors unique to the specific procedure introduce error  Knowing the interview process, having past experience, being distracted etc.  Methods of estimating reliability o Must estimate the degree of variability in a set of scores that is caused by measurement error o Measure the specific attribute for the same people twice – both measures reflect the same true score – discrepancies between the two sets of scores shows measurement error o Extremely difficult to obtain two parallel measures of the same characteristic  Test and retest o The HR manager invites the job applicants back for a 2 interview – asked the same questions in the same order o Correlation of their 1 and 2 interview scores estimates the reliability of job-related experience score o High correlations = high level of reliability  Alternate forms o Same test twice may lead to false estimate of reliability – candidates may have thought of better answers o SO manager asks applicants alternate questions – different form of the same test o Correlation between bothexperience scores estimates reliability – both tests cover exactly the same content but questions are not the same  Internal consistency o Interviews  costly in time and $ to gather all the candidates for a 2 interview o Rather than select any 2 pair of items, the correlation between the scores of ALL POSSIBLE pairs are calculated then averaged  Average estimates internal consistency – the degree to which all the questions in the set are measuring the same thing o Estimates = alpha coefficients or Cronbach’s alpha o Split-half reliability – special case of where all the items are first divided into 2 arbitrary groups – correlation over each person’s avg scores in the 2 groups is used as the reliability estimate  Inter-rater reliability o Measurement often based on subjective assessment of one individual o Correlation between two judges of tests estimates the reliability of their assessments o High correlation = their scores are reliable measures of applicant experience o = classification consistency or inter-rater agreement  purely semantic  Choosing an index of reliability o All the above measures of test reliability fall under  generalizability coefficient o Each of the above is limited and does not convey all the relevant info that might be needed o Need for accuracy increases with the seriousness of the consequences for the employee  Validity o The degree to which accumulated evidence and theory support specific interpretations of test scores in the context of the test’s proposed use o Measure should capture the essence of the characteristic o Refers to the legitimacy or correctness of the inferences that are drawn from a set of measurements o Essential to demonstrate that the measurements lead to valid inferences about the characteristic o Difficult to show the validity of psychological measurements  more abstract thoughts o Validation rests on evidence accumulated through a variety of sources and a theoretical foundation that supports specific interpretations  Validation strategies o Construct and content validity  provide evidence based on test content o Criterion related validity  provides evidence based on relationships to other variables (Diagram 3)  Evidence based on test content o Evidence comes from analyzing the relationship between a test’s content and the construct the test is intended to measure o Validity based on test content  empirical or logical analysis of how well the contents of the test and interpretation of the scores represent the construct  Agreement of subject matter experts (SMEs) that the questions fairly represent the info on scientific methods is evidence of VALIDITY based on test contents  Content validity  SMEs then identify those TASKS that are most IMPORTANT, most FREQUENTLY performed, or the most CRITICAL to do successful job performance o Issue  the degree to which valid inferences can be made about the cognitive ability and job performance constructs from their respective measures  Do the 2 measures measure the 2 constructs that they purport to measure  Construct validity  Answers are based on logical analysis, expert opinion, and the convergence of the measures with other accepted measures of the construct  Evidence based on relationships to other variables o Based on an analysis of the relationship between test scores and other variables that are external to the test o In personnel selection  a test score is usually correlated with a score from a performance criterion rather than one from another test  Criterion  an outcome measure – assesses the degree of success or failure associated with some decision  Measures of job performance  criterion measures
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