Handbook of Strategic Recruitment and Selection: A Systems Approach 9781780528113, 9781780528106

Citation preview

THE HANDBOOK OF STRATEGIC RECRUITMENT AND SELECTION: A SYSTEMS APPROACH

THE HANDBOOK OF STRATEGIC RECRUITMENT AND SELECTION: A SYSTEMS APPROACH

BY

BERNARD O’MEARA University of Ballarat, Ballarat, Australia; Deakin University, Geelong, Victoria, Australia

STANLEY PETZALL University of Ballarat, Ballarat, Australia; Deakin University, Geelong, Victoria, Australia

United Kingdom India

North America Malaysia

China

Japan

Emerald Group Publishing Limited Howard House, Wagon Lane, Bingley BD16 1WA, UK First edition 2013 Copyright r 2013 Emerald Group Publishing Limited Reprints and permission service Contact: [email protected] No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-78052-810-6

ISOQAR certified Management System, awarded to Emerald for adherence to Environmental standard ISO 14001:2004. Certificate Number 1985 ISO 14001

Contents

List of Figures and Tables

xv

List of Reviewers and Contributors

xvii

Acknowledgments

xix

About the Authors

xxi

Preface

xxiii

PART I: STAFFING, THE ORGANISATION AND RECRUITMENT AND SELECTION Chapter 1. 1.1. 1.2. 1.3. 1.4.

Staffing, Systems and Strategy Bernard O’Meara Introduction Learning Activities Staffing Recruitment 1.4.1. Determining Why the Vacancy has Occurred 1.4.2. Is the Job Necessary and has Approval Been Given to Fill the Vacancy? 1.4.3. Has a Budget Been Allocated to Fund the Recruitment and Selection of New Staff? 1.4.4. Is There a Clear Link Between the Vacancy and the Organisation’s Strategic Direction and Objectives? 1.4.5. Should a Person Already with the Organisation be Appointed or Should New Staff Be Appointed from Outside the Organisation? 1.4.6. Has the Job Been Properly Analysed? 1.4.7. Are There Any Legal- or Union-Based Considerations to be Addressed? 1.4.8. Are there Appropriate Application Forms?

3 3 4 5 6 7 7 8 8

8 8 9 9

vi

Contents 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15.

1.16. 1.17.

1.18. 1.19. 1.20. 1.21. 1.22. 1.23.

Selection Management Philosophy The Role and Scope of Management Personnel Management Human Resource Management Strategic Human Resource Management People, Performance, Profit/Outcome and Corporate Strategy Link Resource Maximisation Strategies Investing in People and Retention Traditional Approaches to Recruitment and Selection Systems Theory 1.15.1. What is a System? 1.15.2. How Systems Work 1.15.3. The Application of Systems Theory to Recruitment and Selection Alternatives to Recruitment and Selection The Strategic Approach 1.17.1. What is Strategic Management? 1.17.2. Aligning People and the Organisation Sustainable Staffing Organisational Diagnostics The Role of Strategic Staffing Using a Systems Approach Summary Review Questions Learning Activities

The Organisation Bernard O’Meara 2.1. Introduction 2.2. The Organisation 2.3. Organisation Change and Growth 2.4. Strategic Options 2.5. Porter’s Generic Strategies 2.5.1. Focus Strategies 2.5.2. Cost Leadership or Cost Minimisation Strategies 2.5.3. Differentiation Strategies 2.5.4. Implication of the Choice of Strategy 2.6. Culture 2.7. Structure 2.8. The Environment 2.9. The Organisation & Environment Interface and Links 2.10. Maintaining or Enhancing the Reputation and Image of the Organisation 2.11. Social Responsibility and Ethics

10 11 12 13 15 16 17 18 20 22 23 23 24 26 27 29 29 29 30 30 31 33 33 34

Chapter 2.

35 35 36 38 40 41 41 42 43 44 46 48 49 50 51 52

Contents 2.12. 2.13. 2.14. 2.15. 2.16. 2.17. 2.18. 2.19. Chapter 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7.

3.8. 3.9.

3.10. 3.11. 3.12. 3.13. 3.14. 3.15. 3.16. 3.17. 3.18. Chapter 4. 4.1. 4.2. 4.3.

Preferred Employers Demographics VRIO, Skill and Knowledge Analyses and Gaps Succession The Interviewer(s) Summary Review Questions Learning Activities

vii 53 54 56 60 63 63 64 64

Recruitment and Selection Preparation Stanley Petzall Job Analysis Job Descriptions Critique of Job Descriptions Job Analysis Techniques Job Redesign Opportunities Competency Profiling Internal Versus External Appointments 3.7.1. Internal Recruitment 3.7.2. External Recruitment Non-Traditional Sources Advertising 3.9.1. Radio and Television 3.9.2. AIDA The Internet Retention Strategies Human Capital Theory Signalling Theory Person Organisation Fit Decision-Making The Use and Role of Consultants Summary Review Questions

65 65 67 68 69 70 73 75 76 77 78 80 81 82 85 86 89 90 91 92 96 97 100

Communication, Interviews, Questions and Body Language Stanley Petzall Communicating with Potential Applicants 4.1.1. Cultural Considerations International Recruitment and Selection Interviews 4.3.1. The Role and Purpose of Interviews 4.3.2. Reliability and Validity 4.3.3. Types of Interviews 4.3.4. Group Interviews

101 101 103 106 107 107 108 109 112

viii

Contents

4.4.

4.5. 4.6. 4.7. 4.8. Chapter 5. 5.1. 5.2.

5.3.

5.4.

4.3.5. Peer Interviews 4.3.6. Referral Interviews 4.3.7. Behavioural Interviews 4.3.8. Interview Environment 4.3.9. Preparation for Interviews 4.3.10. The Interview Process 4.3.11. Online Hurdles and Computer Interviewing 4.3.12. Body Language and first Impressions 4.3.13. Questions and Questioning Techniques 4.3.14. Active Listening 4.3.15. Legal Considerations 4.3.16. Criticisms of the Interview Process 4.3.17. Competent Interviewers 4.3.18. Selection and Training of Interviewers 4.3.19. Recruitment and Selection of Senior Executives 4.3.20. Insider/Outsider Theory E-Recruitment and Selection 4.4.1. Video Re´sume´s 4.4.2. Skype and Distance Interviewing Laws Impacting Upon Staffing Evaluation Summary Review Questions

112 112 113 113 114 114 115 115 116 118 118 119 120 122 123 123 124 124 125 126 128 128 129

Aids for Recruitment and Selection Bernard O’Meara Recruitment and Selection Aids The Role and Purpose of Testing 5.2.1. Psychometrics 5.2.2. Types of Tests 5.2.3. Cognitive Capacity/Ability Tests 5.2.4. Graphology 5.2.5. Situational Judgment Tests Reliability and Validity 5.3.1. Reliability 5.3.2. Test-Retest Reliability 5.3.3. Interrater Reliability 5.3.4. Parallel-Test Reliability 5.3.5. Internal Consistency Validity 5.4.1. Criterion-Related Validity 5.4.2. Concurrent Validity 5.4.3. Predictive Validity 5.4.4. Other Forms of Validity

131 131 132 133 135 137 139 140 141 141 142 142 143 143 143 144 144 145 145

Contents 5.5.

5.6. 5.7. 5.8. 5.9. 5.10. 5.11. 5.12.

5.13. 5.14. 5.15.

Situational Testing 5.5.1. Assessment Centres 5.5.2. Game Theory, Simulations and Innovative Selection Tools Social Networking Referrals from Crowdsourcing and Innovation Management Offers Psychological Contracts 5.9.1. Listing Expectations Direct and Indirect Discrimination and Their Impact 5.10.1. Fairness and Equity Traditional and Non-Traditional Reference Checks (Confirmation Material) Probationary Periods 5.12.1. The Exchange/Negotiation Perspective 5.12.2. Interviewer Preparation Summary Review Questions Learning Activities

ix 147 147 149 151 152 153 155 156 158 159 160 161 162 164 164 165 166

PART II: APPLICANTS AND CANDIDATES Chapter 6. 6.1. 6.2.

6.3.

6.4. 6.5.

Applicants and Re´sume´s Bernard O’Meara Introduction Candidates and Applicants 6.2.1. Does a Candidate Always Know That He or She Is a Candidate? Life Experiences 6.3.1. Undergraduate Placements, Consulting and Internships 6.3.2. Volunteering 6.3.3. Cold Calling 6.3.4. Employability Constructing the Re´sume´ 6.4.1. The Cover Letter Preparing the Re´sume´ 6.5.1. CV or Re´sume´ 6.5.2. Which Type of Re´sume´ to Use? 6.5.3. Traditional Re´sume´ Approaches 6.5.4. Graduates and Those with Limited Work Experience 6.5.5. The Targeted Re´sume´ 6.5.6. The Hybrid Re´sume´ 6.5.7. The Inclusion of Photographs

169 169 170 171 172 173 175 176 176 177 177 179 179 181 181 184 184 188 190

x

Contents 6.5.8. Creative Re´sume´s 6.5.9. False Re´sume´s 6.5.10. Necessitated Re´sume´s 6.5.11. Re´sume´ Hooks 6.6. Research on Organisation and Industry 6.7. Cultural Differences 6.8. Summary 6.9. Review Questions 6.10. Learning Activities

Chapter 7. 7.1. 7.2. 7.3. 7.4. 7.5. 7.6. 7.7. 7.8. 7.9. 7.10. 7.11. 7.12. 7.13. 7.14. Chapter 8. 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 8.7. 8.8. 8.9. 8.10. 8.11. 8.12. 8.13. 8.14.

190 192 192 193 194 196 199 200 201

Interview Preparation Bernard O’Meara Introduction Preparing for the Interview General Interview Preparation The Impact of Pre-Employment Perceptions Change of System Status Recruitment Interviews Selection Interviews Commonly Asked Interview Questions Job-Specific Questions Preparing for Specific Interview Types Questions to Ask to the Interviewer Summary Review Questions Learning Activities

203 203 204 206 208 209 210 211 212 222 223 227 227 229 229

First Impressions Bernard O’Meara Introduction The First Meeting Expectancy Perspective Establishing a Relationship Trust Power Indicative Behaviour The 80/20 Guide Eye Contact Nervousness and Observable Behaviour Accents and Colour Negotiations Applicant’s Perspective

231 231 233 236 237 238 239 243 245 247 248 248 249 251 253

Contents 8.15. 8.16. 8.17. 8.18.

Interviewer’s Perspective Summary Review Questions Learning Activities

xi 254 255 256 257

PART III: JOINING TOGETHER: WHEN NEW EMPLOYEES COMMENCE AT A NEW ORGANISATION Chapter 9. 9.1. 9.2. 9.3. 9.4.

9.5. 9.6. 9.7. 9.8.

9.9. 9.10. 9.11. 9.12. 9.13.

A New Start Bernard O’Meara Introduction Induction, Orientation and Onboarding 9.2.1. Orientation The Second Part of the Induction Programme — Socialisation of New Staff Engagement 9.4.1. Job Characteristics 9.4.2. Rewards and Recognition 9.4.3. Procedural Justice 9.4.4. Distributive Justice 9.4.5. Perceived Organisational and Supervisor Support Disengagement Talent Management Systems Individual Career Maps and Succession Training and Development 9.8.1. Multiple Intelligences 9.8.2. Learning Styles Retention and Turnover Graduate Programmes Summary Review Questions Learning Activities

Chapter 10. 10.1. 10.2. 10.3. 10.4. 10.5.

Recruitment and Selection Costs Bernard O’Meara Introduction Talent Acquisition and Internal Consulting Return on Investment 10.3.1. Expatriate Return on Investment (EROI) Full Labour Costs The Costs of Recruitment and Selection 10.5.1. The Cost of Morale

261 261 262 263 272 274 275 276 276 276 277 280 282 284 285 285 286 287 288 289 291 291

293 293 294 298 301 303 305 307

xii

Contents 10.5.2.

The Cost of Employing Staff with Different Educational Backgrounds 10.5.3. Staff Separations 10.6. The Cost of Getting it Wrong 10.7. The Benefits of a Talent Development Programme 10.8. Human Resource Accounting (HRA) 10.9. Creating a Business Case for Talent Acquisition 10.10. Summary 10.11. Review Questions 10.12. Learning Activities Chapter 11. 11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7.

11.8. 11.9. 11.10. 11.11.

11.12. 11.13. 11.14. 11.15. Chapter 12. 12.1. 12.2.

Continual Improvement: The Kaizen Requirement Bernard O’Meara Introduction List of Expectations Revisited Feedback Loops Inputs Processes Those Using the Processes Other External and Internal Deterrents 11.7.1. External Deterrents 11.7.2. Internal Deterrents The Transformation Process Evaluating Performance and ‘fit’ Human Resource Information Systems and Talent Management Systems Continual Improvement (Kaizen) 11.11.1. The Characteristics of Kaizen 11.11.2. Types of Kaizen 11.11.3. Management Development 11.11.4. Kaizen Methodology Fixing It! Summary Review Questions Learning Activities Evaluation and the Future Bernard O’Meara Introduction Evaluation 12.2.1. Why Evaluate? 12.2.2. What is it Hoped That the Evaluation Processes Will Achieve?

308 309 312 314 316 319 320 322 322

323 323 324 326 328 329 330 331 331 333 334 336 338 340 340 342 346 347 349 349 351 351

353 353 354 355 357

Contents

12.3. 12.4. 12.5. 12.6. 12.7.

12.2.3. What will be Evaluated? 12.2.4. Analytic Evaluation 12.2.5. Intuitive Evaluation Evaluating Recruitment and Selection Costings Summary Review Questions Learning Activities

xiii 359 361 362 362 370 374 376 377

References

379

Appendices

393

A. B. C. D. E. F. G. H. I. J. K.

393 395 395 396 408 409 411 413 414 415 421

Recruitment & Selection Summary Effective Strategic Recruitment & Selection Strategies to Acquire and Retain Talent Interview Guide Question Types Reference Check Overview of a Targeted Re´sume´ Where We Develop and Display Our Human Capital Resume Writing Worksheet Re´sume´ Types and Examples Phone Screen

Glossary

423

Index

431

List of Figures and Tables

Figures Chapter 1

Chapter 2 Chapter 10

Figure 1.1

The relationship between people, performance and profit or desired outcome. . . . . . . . . . . . . 18 Figure 1.2 A basic outline of the interaction between an organisation and its environment, and other systems . . . . . . . . . . . . . . . . . . . . . . 24 Figure 1.3 An outline of the system involving an organisation, its environment and staff. . . . . . 26 Figure 2.1 Management philosophy, strategy, labour market and orientation. . . . . . . . . . . . . . . . . . 45 Figure 10.1 Learning and salary relationship. . . . . . . . . . 305

Tables Chapter 8 Chapter 9 Chapter 10 Chapter 12

Table 8.1 Table 9.1

A sample decision matrix. . . . . . . . . . . . . . Percentage of Asia Pacific employers expecting an increase in staff turnover. . . . . . . . . . . . . Table 10.1 The full cost of the learning curve of a new employee. . . . . . . . . . . . . . . . . . . . . Table 12.1 An example of an analytic evaluation. . . . . . . . Table 12.2 Sample evaluation. . . . . . . . . . . . . . . . . .

235 287 306 361 374

List of Reviewers and Contributors

Debashish Sengupta

Alliance University, Bangalore, India

Craig Russell

University of Oklahoma, United States

Zang Hongyu

Harbin University of Technology, China

Vijay Kumar

CUCST, Malaysia

Sebreena Cronin

Talent Acquisition Manager, 3M, Australia and New Zealand

Joe Marincic

Human Resources Manager, 3M, Australia and New Zealand

Qingguo Zhai

The Business School, University of Ballarat, Australia

Alan Lawler

The Business School, University of Ballarat, Australia

Acknowledgments

In gathering material for an international text such as this there are many people the authors would like to acknowledge. Without the support and input of such people this text may not have been completed. Dr O’Meara would like to acknowledge the support and help from his wife Cheryl and the extraordinary patience of his two sons, Nathan and Aden. Dr Petzall would like to acknowledge the support and assistance of his wife Theresa in the writing of the chapters for which he was responsible. Jointly, the authors acknowledge the help and support of Jim Bowden, Kim Eggleton, Kieran Booluck and Rachel Gerlis of Emerald Publishing. These three people put their confidence in the authors and provided them with every opportunity to succeed. We would also like to acknowledge the reviewers who provided rigorous academic feedback to ensure the final draft was to the standard expected by Emerald. The reviewers of the concept proposal and the draft document include Professor Debashish Sengupta of the Alliance University, India, Professor Craig Russell of the University of Oklahoma, Associate Professor Zang Hongyu of Harbin Institute of Technology, China, Mr Vijay Kumar Thambimuthu, Regional Business Associate (Malaysia), Qualifications and Assessments International (QAI) UK, Mr Joseph Marincic, Human Resources Manager, 3M, Australia and New Zealand, Ms Sebreena Cronin, Talent Acquisition Manager, 3M, Australia and New Zealand, Mr Alan Lawler and Dr Qingguo Zhai of the University of Ballarat, also provided advice and guidance as required so that the authors considered the broadest range of perspectives. The outcome was academic rigour that provides the reader with a thorough coverage of contemporary recruitment and selection theory and application. Thanks also to Mike Willis, Dean of The Business School at the University of Ballarat for allowing the authors to focus on, and complete, this project. Our sincere thanks to everyone involved in this project, we could not have done it without you.

About the Authors

Bernard O’Meara is a senior lecturer at the University of Ballarat where he has worked for 18 years. He specialises in strategic recruitment and selection, strategic human resource management and strategic management. He has co-authored a text with Dr Stanley Petzall on the recruitment and selection of vice-chancellors for Australian universities, contributed to a text on Industrial Relations as well as co-authoring articles in international journals. In addition he has lectured at Deakin University and was a foundation member of the Academic Advisory Board of Carrick Higher Education. He is listed in Marquis Who’s Who in the World. He is a deputy director-general and a life fellow of the International Biographical Centre, Cambridge. He was also listed in the 2000 Outstanding Intellectuals of the 21st Century, 7th edition, 2013. Stanley Petzall is an academic with an internationally recognised and distinguished career. He was previously a senior lecturer in the Deakin Business School at Deakin University, where he was involved in the postgraduate master of business administration programme. For many years he was unit chair of the foundation Organisational Behaviour course. He was also responsible for developing the undergraduate bachelor of business (human resource management) degree at the Nanyang Technological University during the period 1990 1993. He has published widely in the fields of management, organisational behaviour and industrial relations in international journals. He is also the co-author of four textbooks.

Preface

Organisations in every country on earth are finding themselves in shrinking domestic competitive environments and more in a hyper-competitive global environment. In order to secure a sustainable competitive cost effective environment organisations are discovering they have access to similar financial services, plant and equipment, contacts and customer bases. However, it is the human resources that differentiates organisations and determines their level of quality or cost effectiveness, client satisfaction, growth into new markets and achieving strategic directions and goals. It may be obvious that any organisation cannot operate effectively without staff. It is the staff who add value to an organisation and maximise its resources and potential and determine levels of success such as profit, effectiveness, efficiency, quality and customer satisfaction or other success factors. Staff add value to organisational resources and utilise them to determine the required outcomes. Staff drive organisations to success, however the term ‘success’ may be meant. The purpose of this text is to examine the complex relationship between the acquisition of the best possible staff and optimising their development and potential to aid an organisation to achieve its desired goals. It also examines and explains how organisations invest in their staff so that the staff and the organisation both achieve their mutual goals and in doing so reduce unnecessary turnover costs. The text examines the growing use of strategic recruitment and selection to meet the organisation’s human resource needs for the future such as staff acquisition in a knowledge-based global community. A systems approach is used to illustrate how staff recruitment and selection can be used to identify issues within an organisation that may adversely impact on the recruitment and selection strategy. This leads to an inbuilt Kaizen or continual improvement approach to help those who recruit staff to improve their staff appointment success rate. Organisational diagnostics becomes a necessary tool that recruiters can use to ensure the best possible match between the organisation requirements and new staff. The strategic and systems approaches to staff acquisition can be used to reduce costs for organisations and to increase the optimal performance of staff to a mutually beneficial outcome. Recruiters can identify internal issues that may cause a decline in staff tenure and eliminate these to ensure staff stay longer and perform better. The text provides a comprehensive analysis on one of the most important and expensive business functions — the acquisition of the best possible staff necessary to achieve organisational strategic outcomes. The specific approaches outlined in this

xxiv

Preface

text can be successfully used in any type of organisation in any nation. The text is a reflection of the time and large financial resources used by organisations to find their greatest asset — their staff. Who should read this text? The text is designed primarily for those undertaking human resource management, management or related undergraduate and postgraduate studies in these areas. However, the text can also be used by those already in a professional role where they are required to appoint staff. Thus, engineers, accountants, small business owners, police, emergency services and the military can use and apply the principles outlined throughout the text. Anyone in any country in any government or private sector organisation — including not-for-profit organisations — can use it as well. Organisations wishing to pursue high quality corporate strategies will find the text useful as it explores the relationship between people and quality or profit. The text also covers recruitment and section preparation by organisations as well as from the applicant perspective. It is important that staff delegated to recruit and select new employees know what to look for in a resume and how to link this to the overall system of strategic recruitment and selection. However, applicants also need to know how to prepare a resume that can be more effectively perused by organisational staff. Resumes can contain relevant information and examples of success making the role of the resume reader far easier. This is particularly important where organisations receive hundreds if not thousands of unsolicited resumes even before they decide to seek staff to fill a position. How the Text is Structured? The text is divided into three parts. Part I, ‘Staffing, the Organisation and Recruitment and Selection’, sets the conceptual context for the balance of the text. Part I introduces the core concepts of staffing, strategy, systems and argues that it is people who drive an organisation to sustainable competitive advantage. It also explores the important relationship between people, their performance and how these help organisations achieve desired outcomes. Part II, ‘Applicants and Candidates’, introduces recruitment and selection from both the organisation and applicant’s perspectives. The use of the resume as a means of effective communication that best represents the desired attributes of applicants is explored. The re´sume´ can be a time saving mechanism if it is constructed properly, is focussed and does not contain irrelevant information. This part builds upon Part II so there is a clear flow of concepts, systems, information and application. Part III: ‘Joining Together: When New Employees Commence at an Organisation’, outlines the importance of ensuring new employees have the experience necessary to reduce costs and staff turnover and achieve desired outcomes. This part returns to the role and purpose of a strategic systems approach to recruitment and selection, the feedback loops, continual improvement and effectiveness evaluation. Each chapter commences with the learning objectives designed around the material covered in that chapter. The objectives provide a link to the core chapter concepts so there is a consistent flow of information.

Preface

xxv

Throughout the text actual examples are used to highlight the application of the concepts under discussion. At the end of each chapter are review questions that help further explore the chapter material in greater depth. A glossary of terminology is included in the text for easy reference. The review questions can be used to ensure that the reader has gained a full understanding of the concepts and material in each chapter. The questions commence at a very fundamental level however the level of complexity increases requiring readers to use more highly developed analytical, synthesis and evaluative approaches. Where the text is used as an educational and facilitative tool a complete set of integrative power point slides are available for lecturing staff.

PART I STAFFING, THE ORGANISATION AND RECRUITMENT AND SELECTION

Chapter 1

Staffing, Systems and Strategy Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions you will: • Value the contribution that effective systems-based strategic recruitment and selection makes to an organisation • Understand the complex relationship between people, performance and profit-desired outcome • Appreciate the application of systems theory to recruitment and selection • Be able to apply strategic methodology to recruitment and selection • Differentiate between traditional recruitment and selection methodologies from systems-based strategic approaches • Create a contemporary systems-based strategic recruitment and selection strategy after gathering the requisite knowledge from this chapter

1.1.

Introduction

In today’s highly competitive global market, organisations are investing heavily in identifying those who can add value to, and lead, their organisations successfully into the unknown future. The change from an industrial society to a technological society created change and challenges not previously experienced. Yet, a further change to a knowledgebased society is already occurring. Therefore the knowledge, competencies, experience and networks of existing staff need to change in response to establishing or entering new markets, seeking new opportunities and meeting new challenges. The use of information technology (IT) allows stakeholders to monitor organisational performance as well as the contribution made by managers and executives. Any changes in the performance of organisations are highlighted quickly by the

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

4

Bernard O’Meara

media and at the forefront of this spotlight are the roles of leadership and effective decision making which drive and determine success. These have become critical for organisations seeking to grow, enter new markets or to just maintain existing market share. Leaders are expected to be excellent communicators and capable of winning allegiance from staff for new strategies and directions. They must know the right people via established networks, be charismatic and able to cope with intense pressures, long working hours and endless demands and changes. Organisational leaders also need to have the right staff working with them and in harmony in respect to agreed strategic imperatives. However, staff must also have a sound judgment and decision-making competencies and experience. They must be able to sift through mountains of information, reports and paperwork and be able to identify and prioritise the key issues. They need to make the right decisions for the right reasons and in a timely and economically justifiable manner. Good leadership is highlighted in the media while organisations with less appropriate leadership are also highlighted and are of particular interest to those people seeking new employment opportunities. Recruiting and selecting new staff in the current environment is now more important than ever. New staff who will undertake these leadership and management roles in the future need the competence and potential to grow with the organisation. The organisation needs staff who can locate, identify and appoint these people who have the competence, knowledge and capacity to help the organisation achieve its goals in the future (Schramm, 2012). It is recognised that staff bring more than competence to an organisation. They bring knowledge, talent, potential, contacts, networks and experience with them. Thus strategic-based organisations tend to seek new staff from a holistic or human capital perspective so that new staff can be nurtured and developed for the future (Crawford, 1991). This chapter introduces the roles of staffing, recruitment and selection, management, management philosophy, systems and strategy and that these integrate to form successful business outcomes.

1.2.

Learning Activities

Activities throughout this handbook are based around gaining, and building upon, experience and knowledge. Experience and knowledge can be gained from carefully constructed exercises for use in classrooms but they can also be gained by creating new situations whereby people learn. People can have new experiences daily and these aid in shaping the way we address issues as they arise. We recall our personal experiences and determine if they can help us resolve problems as they arise. When we have new experiences, we retain information and use it in future encounters (Boud, Cohen, & Walker, 2002).

Staffing, Systems and Strategy

5

Each person has a range of experiences and knowledge that help them make choices in how we react to new situations. When we share experiences and knowledge with each other, all participants benefit. Those currently in the workforce have an added benefit in that their employer may agree for them to work on projects within the organisation and to use these as learning experiences. Universities and colleges also arrange for learners to undertake placement courses or internship with organisations where theory becomes practice. This is a valuable experience as it makes participants better comprehend the implementation of theoretical concepts. Any form of work-based learning can aid in gaining knowledge and experience that can be built upon further in years to come (Boud, Solomon, & Symes, 2003). Problem-based Learning (PBL) involves discovering the questions you need to ask, discovering the answers and making sense of these. It is based around the individual’s freedom to think, learn and explore without being ‘told’ what to do, how to do it and what the ‘correct’ answers are. PBL involves individual discovering for themselves in different ways as compared to traditional modes of education. In PBL participants learn how to learn and discover what questions need to be asked to achieve desired outcomes (Savin-Baden, 2001). There are various activities that can be used to learn at the end of each chapter to meet different learning styles. However, individual opinions, experience and learning styles need to be identified, catered for and respected (Savin-Baden, 2001).

1.3.

Staffing

The term ‘staffing’ refers to the overall policies, procedures and guidelines that organisations use to attract, retain and develop their employees or staff. These can reflect the organisation’s preferred methods of recruiting new staff, promoting and transferring existing staff, training, educating and developing staff, determining appropriate wage and salary strategies, creating meaningful employment opportunities, recognising valuable contributions by staff, evaluating and optimising performance. Staffing is important to organisations and can be critical in aiding their survival and growth. People are the core asset of any organisation and it is the performance and commitment of staff that differentiates organisations. In this sense staffing is the overarching management of people in the organisation, those entering the organisation and those leaving (Wickramasinghe, 2007). The definition given above extends previous perspectives of staffing that were limited primarily to recruitment and selection and those organisational policies relating to these activities. However, staffing can be seen as a complete system dominated by recruitment and selection which are the core of staffing. Staffing can be seen as the process by which individuals and organisations become matched to each other. The outcome of this is an employment relationship.

6

Bernard O’Meara

The relationship commences with the employment of new staff and continues till the employment relationship ceases when staff leave the organisation (Heneman, Judge, & Heneman, 2000). It would be costly for an organisation to employ new staff only to have them leave after heavily investing in the future of those staff. Therefore, motivation strategies and incentive programs can be developed to help retain new staff for as long as possible. The Australian economy is relatively small compared to other national economies, however, in 2000 it was reported that one Australian organisation spent nearly Au$1 billion on recruiting and selecting new staff annually. It is brave and exceptional for organisations in any country to admit to the huge amount of funds spent annually on staffing overall. Finding the right person for the right job and keeping them is cost efficient and strategically sensible (Fox, 2000).

1.4.

Recruitment

Recruitment refers to an organisation’s ability to: • • • •

Attract a suitably qualified pool of applicants for a vacancy Attract staff in a cost effective manner Attract staff in a timely manner so that appointments are made quickly Provide a short-list of candidates to proceed to the selection phase

Organisations need to communicate to a target group of individuals that a vacancy exists, the nature, tasks and scope of the position, the requisite experience and knowledge needed to successfully undertake the role. The organisation also needs to communicate how to apply for the position and the subsequent process that follows. However, recruitment is highly competitive as organisations compete for the same people to fill similar positions. This increased competitiveness means that organisations market themselves through positive communication to potential applicants. In an employees’ ‘market’ where there are more vacancies than suitably qualified staff to fill them, candidates can have more control over which organisation they decide to join. This could lead to candidates comparing wages, salaries, flexible working arrangements and benefits and accepting the best offer. In an employer’s ‘market’ the control or power to appoint resides with the employer. Organisations operating in the global or international market also need to consider cultural sensitivity and awareness as they enter new markets to sustain or increase organisational growth. In this instance the added dimension of culture may require different methods of recruitment to those previously used as organisations determine if it is better to expatriate a current employee or employ staff in the country the organisation is moving into (Lenartowicz & Johnson, 2007). Inevitably employers will seek to recruit the best candidates while the candidates will choose which positions they apply for. Both the employer and the applicants

Staffing, Systems and Strategy

7

may bargain for the best outcome for themselves which also leads to increased competitiveness (Johnson, Winter, Reio, Thompson, & Petrosko, 2008). Traditionally, employers would advertise positions in hard media such as newspapers and professional journals or they would use consultants to source staff. However, in the current global village where greater communication is readily accessible more online recruitment is being undertaken. Employers can list vacancies online and reach a far greater target audience. Also employment and executive consulting organisations can list vacancies on behalf of their clients and again reach a huge global audience not just a local target audience. Online recruitment continues to grow (Parry & Wilson, 2009). Recruitment is an outcome of a great deal of preparation undertaken by both an employer and an applicant. Organisations can use a strategic perspective once it is known a vacancy will occur. This preparation includes: 1.4.1.

Determining Why the Vacancy has Occurred

If a new position has been created then the organisation needs to ensure it is aligned with the strategic direction and imperatives of the organisation and determine if the position is sustainable in the long term. If a vacancy arises that was not planned for, then an analysis can be undertaken of the job, the previous job holder and the organisation to determine what caused the departure of a staff member. If issues such as poor communication, lack of job training, poor supervision, and no possible career advancement are found to be present, these need to be rectified prior to a new person be appointed. If these issues are not effectively addressed then there is a possibility that new staff may also leave for the same reason which will increase costs and lower morale and quality. This is referred to as Organisational Diagnostics. These steps are briefly discussed in the following paragraphs but are covered in-depth in later chapters. 1.4.2.

Is the Job Necessary and has Approval Been Given to Fill the Vacancy?

When a vacancy arises it is standard to decide if the position is still necessary. At times organisations appoint new staff without checking if the position is viable and sustainable. In such cases new staff believe they are accepting a full-time position only to discover that the position is terminal in the medium to long term. It is also essential to ensure approval has been given to fill the role. Small organisations working to a tight budget may need to defer appointing new staff till they are in a better financial condition. Therefore approval may be deferred rather than immediate. Approval to appoint new staff needs to be considered in terms of an organisation’s budget. When a person leaves an organisation there may be a clear need to find a person to fill the vacancy. However, a check of the organisation’s budget will confirm if it is prudent to allocate immediate funds for the recruitment and selection of new staff. The outcome of recruitment and selection is the appointment of new

8

Bernard O’Meara

staff and funds need to be allocated for the duration of the person’s tenure with the organisation. Thus a check on budget is essential. 1.4.3.

Has a Budget Been Allocated to Fund the Recruitment and Selection of New Staff?

In the current competitive employment market, it is wise to allocate a budget to find and appoint new staff. The recruitment and selection budget must be realistic in order to get the right people and hence, as with any other management activity, the cost of the recruitment and selection options need to be fully costed and those costs need to be defensible. The budget needs to be adhered to and expenditure carefully controlled. This will demonstrate that those undertaking recruitment and selection are aware of costs and their impact on organisational profitability. 1.4.4.

Is There a Clear Link Between the Vacancy and the Organisation’s Strategic Direction and Objectives?

Each position needs to clearly link into an organisation’s strategic direction and its objectives. Organisations do not employ staff they do not need and will not need in the future. It makes sense financially, economically and strategically to ensure that each position supports the strategic direction. This is like a jig-saw puzzle where each piece has a part to play in the overall picture. If a minor part is missing, the picture is not complete. Likewise organisations need to fit each person and job into the overall schema or it is incomplete. 1.4.5.

Should a Person Already with the Organisation be Appointed or Should New Staff Be Appointed from Outside the Organisation?

Organisations with a staffing policy will have already determined if they prefer to appoint internal staff to a new position, appoint external applicants only or seek both internal and external applications for a position. Internally, medium- to largesized organisations may have individual career maps for staff and succession plans across the organisation. In order to appoint a person external to the organisation, a known target audience needs to be identified and communicated with. Many organisations tend to look both internally and externally simultaneously to be fair to all. 1.4.6.

Has the Job Been Properly Analysed?

When a vacancy arises it is a good opportunity to review the job in terms of the tasks to be undertaken as well as the competencies, knowledge and experience required to successfully undertake the role. This means reviewing the job tasks, reviewing the scope and dimensions of the job to make it more desirable through job enlargement, job enrichment, job rotation and job autonomy. One important outcome is the ‘selection criteria’ or those criteria that applicants must have or should have.

Staffing, Systems and Strategy

9

Selection criteria are also known as the Knowledge, Skills and Other Abilities (KSAOs) that applicants must have to successfully undertake the vacant position. These criteria form the basis of the job description, interview questions and evaluations of applicants. They are central to recruitment and selection. The job description is central to communicating internally or externally to target audiences what the job entails. 1.4.7.

Are There Any Legal- or Union-Based Considerations to be Addressed?

In some instances legal requirements such as anti-discrimination, equal employment opportunity (EEO) or national quota requirements to employ economically or socially disadvantaged people need to be considered. Also, where unions are represented in organisations any agreements or other requirements may also need to be considered prior to recruitment and selection. 1.4.8.

Are there Appropriate Application Forms?

An application form may be developed for different positions in an organisation or, in some cases, one type of application form may be used for all types of positions. These forms can be constructed differently but must capture the basic information required by an organisation and to meet employment law requirements. These can be used to confirm information provided by applicants in their re´sume´s. These aspects inform the rest of the recruitment phase and determine the following: • • • • • • • • • • • •

How best to identify and communicate with appropriate candidates The use of external consultants Reviewing external demographics Reviewing internal culture, strengths and gaps The most appropriate type of interview to be used The type of questions asked in interviews The person(s) to conduct the interview(s) The type of comparison or evaluation to be used to assess applicants The use of hurdles to deter unsuitable candidates from applying The use of psychometric testing as an early assessment tool Creating a short-list of applicants to proceed to the selection phase Determining any training, induction, orientation or education successful applicants may require

The vacancy may be communicated internally via noticeboards, newsletters, intranet and even word of mouth. Externally the position may be advertised through: • Newspapers • Magazines • Professional journals

Bernard O’Meara

10 • • • • • • • •

Associations and unions Radio Television Universities and colleges Sourcing consultants Websites Social media Bulk e-mails

Each needs to be considered carefully in order to target the appropriate audience in the most effective manner. It is common for organisations to use hurdles in communicating vacancies to suitable candidates. These hurdles can include: • • • • •

Applicants having appropriate qualifications, experience and knowledge Applicants required to have a minimum number of years’ experience Job or role specific competence Ideally having same industry experience Requiring the successful staff to travel

The above funnel applicants as large numbers of people may be interested in the role but the hurdles aid in ensuring unsuitable candidates do not apply for the position. At the 2012 Olympic Games in England, 100,000 expressions of interest were made for 10,400 jobs as security guards. Sixty-seven thousand people were interviewed and 21,000 applicants proceeded to the next phase of appointment. It is not unusual for organisations to receive large numbers of unsolicited re´sume´s or for people to visit organisations in the hope a suitable position may be available (Brockett, 2012). From a financial perspective it is more cost effective for organisations to employ the right people the first time. Thus the preparation that takes place prior to the interviewing phase of recruitment must be thorough and complete as it is the foundation for success and the selection phase.

1.5.

Selection

The post recruitment phase is selection. Those successfully screened via the recruitment process will be invited to enter this phase. A great deal of information is gained through the recruitment phase while the selection phase allows the organisation and applicants to engage in acquiring and passing on information to determine suitability or the ‘fit’ between both parties. Each party continues to gather information about the other to help arrive at a decision. The information can be intuitively or formally analysed and evaluated to aid in this process. Selection must, at all times, be linked to the organisation’s strategic imperatives, however, the selection phase is concluded by the organisation

Staffing, Systems and Strategy

11

making an offer of employment to one or more applicants and declining others interviewed (Gatewood & Feild, 2000). The selection phase may include the following: • • • • • • • • • •

One or more interviews Psychometric testing Attending an assessment centre Checking references Medical assessments where required Finalising the training and education a successful applicant will require Job offer Induction Monitoring performance of successful candidates Creating feedback loops for the system

The selection phase determines if an offer of employment is made, the terms and conditions of employment and the committing of financial and other resources. If the wrong person is appointed, then the costs and resources associated with employing the wrong staff are lost. If the organisation continues to fill the vacancy then costs can escalate as the same costs of recruitment and selection are used to find another person. An overview of the recruitment and selection system is given in Appendix A.

1.6.

Management Philosophy

Organisations are complex in nature and are often driven by the personal values, beliefs and philosophies of senior management. These philosophies underpin the practices made by management to enhance organisational performance. The environment in which organisations operate has become complex and highly competitive and so each organisation in a particular industry seeks to differentiate itself and attain a sustainable level of competitive advantage (Burke, 2008). The successful leaders of organisations align their strengths with the strategic imperatives of the organisation. Their commitment to create and drive strategy is matched by their capacity to motivate key staff and achieve desired outcomes. The philosophy of the leadership and/or management of an organisation determine how they view and treat the core assets — staff. This philosophy is informed by knowledge and experience as well as belief and value systems and can be very complex in nature. However, there is a huge range of philosophies but in simplistic terms this handbook will look at extremes in philosophy; that management may view staff as an asset while at the other end of the spectrum staff are viewed as expenses (Kerr, Landauer, & Lelon, 2008). Within the spectrum of philosophy there is room for contemporary examples where core staff are viewed as critical to an organisation’s success while other staff

12

Bernard O’Meara

may be regarded as peripheral. Management philosophy may be consistent or change dependent on external economic factors. While management philosophy and leadership impact upon existing staff and those being recruited to fill positions, in medium to large organisations this function may be undertaken by a personnel, human resource (HR) or strategic HR practitioner. It is useful to provide an overview of these functional areas. Because these functions deal with the spectrum of staffing, the context for recruitment and selection can be identified. The majority of organisations in the small- to medium-sized organisations do not have practitioners but still deal with the same issues as their larger counterparts.

1.7.

The Role and Scope of Management

Organisations need several different types of resources in order to be effective and achieve desired and agreed outcomes. These resources can include physical, financial, goodwill and a capacity to meet the needs of the markets they serve. Government and non-government-based organisations (GBO), not-for-profit organisations as well as private-sector organisations all play a role in local, national and global communities. The core common factor in organisational resources is people. It is people who create an organisations’ access to capital, plant, equipment and other resources, develop products and services, make decisions, determine customer satisfaction, create strategic opportunities and help an organisation determine and achieve its goals. Thus people use both internal and external resources, including other people, to achieve a sustainable competitive advantage or other mission. This is achieved by organisations appointing the best available staff at the right cost and managing them to achieve desired outcomes. However, it is important to differentiate management from the role of human resource management (HRM). Hitt, Black, and Porter (2005, p. 8) define management as: The process of assembling and using sets of resources in a goal-directed manner to accomplish tasks in an organisational setting. Management is about getting things done. It is management that goes about making it happen and attending to the detail. Research into the role of the manager still largely revolves around adaptations of Fayol’s work over 100 years ago. While Fayol produced 14 functions of the manager, contemporary literature focuses primarily on four of these: planning, organising, controlling and directing. These four functions are still seen as fundamental components of the manager’s role (Hitt, Black, & Potter, 2005, pp. 25 29). A study conducted by Mintzberg (1983) using personal observation as well as drawing on other literature examined managerial roles. Mintzberg concluded that there are three classes of roles played by managers, and ten roles overall. The three

Staffing, Systems and Strategy

13

classes of roles are interpersonal, informational and decisional. The interpersonal role class was broken down into three roles: • Acting as a figurehead, dealing with important visitors and conducting ceremonial functions • Dealing with important visitors • Conducting ceremonial functions The informational role class was also broken down into three roles: • Acting as monitor, actively seeking which may be of value to the organisation • Disseminating information by transmitting relevant information in the workplace • Acting as spokesperson in respect of external communications, including with the news media The decisional role class was broken down into four roles: • Acting as entrepreneur, to voluntarily initiate change, solve a problem or capitalise on an opportunity • Disturbance-handling, which involves responding to problematic occurrences such as strikes • Negotiating, for example, by representing the organisation at top-level meetings • Acting as resource allocator, whereby the manager decides on the distribution of scarce resources according to their priorities The difference between the works of Fayol and Mintzberg is that the latter showed that the life of the manager is not predictable or organised. Instead it is filled with short-duration activities which are often informal such as having conversations in corridors or via phone calls rather than writing formal letters or, more recently, e-mails. Mintzberg referred to managerial work as characterised by ‘variety, brevity and fragmentation’ (Mintzberg, 1983, p. 26) in work activity. There is a necessary link between leadership and management. Both complement each other as one shows the way and the other makes the way. It has been known for some time that where the manager or positional leader lacks the requisite leadership qualities, then ‘informal leaders’ may fill the gap. These informal leaders lack positional power and authority but due to their strong interpersonal and communications competencies they are able to inspire and motivate those around them (George & Jones, 2005).

1.8.

Personnel Management

World War II was a tragic period in human history but it had a profound effect on different types of organisations around the world. As skill shortages took their

14

Bernard O’Meara

toll on manufacturing and other industries, countries looked to previously underrepresented sectors such as women, immigrants, the disabled and indigenous persons to fill these gaps. At the close of war service personnel returned to their home countries to reestablish their lives and careers. In Australia the role of finding roles for returned service personnel in organisations fell to welfare officers. It was their responsibility to link managers seeking staff with those who returned home. The emphasis was on employment rather than matching talent with organisational needs as the economy required more people to be gainfully employed in order to forge a healthier and more competitive future. In countries such as the United States and Britain, the focus began to change to increased competitiveness and larger organisations viewed their future as not being bounded by national borders. Sustained growth meant that large organisations entered new markets in new countries and commenced diversifying the range of products and services available. The impact of such growth challenged organisations to decide if it was better to retain a culture, hierarchy, remuneration and industrial relations philosophy in their overseas operations as they had in their homeland or to adapt to the prevalent approaches in these new country bases. Importing new practices and cultures into different countries caused a change in the way domestic organisations operate in order to compete with international organisations for the best available staff. In countries like Australia, strongly influenced by British practices, the welfare officer role, which had no real authority, gave way to Personnel Management (PM). In the 1970s and early 1980s PM was a middle-level functional arm of senior management. Being middle management the role could have input into the organisational strategic direction but was generally reactive in nature rather than proactive. At this point it is common for a little confusion to occur as the term ‘personnel management’ can means different things in different organisations and can be confused with contemporary HRM. In general, PM was reactive and functional in that practitioners could advise line managers or supervisors but it had no authority itself. Instead practitioners who developed a reputation for excellence and providing sound advice while protecting the interests of the organisations were respected and their advice was sought and valued. Central themes of early PM were control and compliance. The control component aligned with Fayol’s idea of the role of management. In terms of management and employee relations, practitioners were to enforce organisation policy with industrial relations consequences. As PM was based on a unitarist philosophy, unrealistically emphasising commonality of interest between management and workers, conflict was inevitable and often required external intervention by regulatory bodies to resolve conflict. The key functions of PM included: • Recruitment and selection • Performance appraisal

Staffing, Systems and Strategy • • • •

15

Industrial relations Wage and salary administration Training and development Occupational health and safety

However, PM consisted of a continuum. At one end were organisations that needed legislation to set minimum standards such as occupational health and safety. These organisations had control embedded in their philosophy so it was not uncommon for the personnel functions to be used to exert control over the workforce (Bratton & Gold, 2007). If employees did not adhere to organisation policies and philosophy then training could be used to reinforce the process that staff were expected to follow. Performance appraisal and wage maintenance rather than increases ‘could’ be used to enforce behaviour and standards expected by the organisation. During this period a number of global government interventions impacted the recruitment and selection process heavily. A growing number of countries ratified and adopted the International Labour Organisation (ILO) conventions and accords. In terms of recruitment and selection traditional personnel-based organisations sought to employ staff who were compliant and fitted the prevailing culture and philosophy of the organisation. In this organisation staff could be seen as expenses and during periods of economic decline or recession staff would be sacrificed to reduce costs and overheads. At the other end of the spectrum were personnel practitioners in organisations that viewed staff as assets that could be invested in and developed. This change signalled a difference in organisational philosophy in terms of inclusivity, employee involvement and participation.

1.9.

Human Resource Management

Because HR practitioners and managers recruit people into an organisation, they need to understand all aspects of the organisation if they are to effectively match applicants with the short-, medium- and long-term needs of the organisation. There are few roles in an organisation that require such a comprehensive and fundamental understanding as those responsible for recruitment and selection. HR practitioners undertake similar activities as a personnel manager. However, instead of seeking control and compliance they seek staff commitment to organisational goals. As markets became more competitive, employers sought flexibility in their workforce to meet the needs of their clients. Rigid organisation structures could not respond quickly to client needs and the conflict-based personnel type organisations could no longer compete with the flexible work practices of the flexible organisation.

16

Bernard O’Meara

Flexibility meant gaining commitment from staff in order for them to understand why their organisation needed to change. This ushered in the opening of new internal workforces that could: • • • • • • •

Participate in decision making Respond quickly to external market changes Allow staff to have greater autonomy in their work Provide greater career opportunities Better understand their role in the organisation Communicate and be listened to Allow management and employee relations to replace the conflict-based industrial relations approach • Be developed as an asset • Provide a sustainable competitive advantage HRM provided an environment where staff felt valued and recognised. This shift from treating staff as an asset rather than an expense was underpinned by a new perspective — people are our greatest asset. HR practitioners had input into organisational strategies but the role remained a functional and middle management. However, as a member of the management team they were held accountable for costs and impact on organisational profit (Dessler, 2013).

1.10.

Strategic Human Resource Management

Strategic human resource management (SHRM) evolved to meet the needs of global and international organisations in highly competitive markets where the nature of organisations changes. In this sense SHRM aligns all HR functions with the mission, vision, goals and strategic objectives of the organisation (Bratton & Gold, 2007). However, the resource-maximisation strategy goes beyond the concept of SHRM as staff are considered the core asset of the organisation. As SHRM practitioners are usually situated in executive management they have the opportunity to mould the organisation’s structure, culture and management philosophy around the staff. In part they construct the organisation around staff to optimise their performance and provide them with the necessary items they need to be successful in their jobs. The resource maximisation treats staff holistically so the boundary between the organisation and its external environment blurs. It is recognised that staff are part of the external community and the internal community of the organisation. This sense of community allows SHRM practitioners to be pluralistic and recognise that there are individual needs and collective organisational needs. Attitudes towards sustainability are embedded in the organisation’s culture as it impacts upon staff in both communities.

Staffing, Systems and Strategy

17

The discussion of PM, HRM and SHRM gives an insight into how staff are viewed as assets or expenses. This view translates into recruitment and selection practices and helps determine employers of choice.

1.11.

People, Performance, Profit/Outcome and Corporate Strategy Link

Organisations are constructed to meet the goals of stakeholders. Stakeholders can include: • Shareholders or those people, and other organisations, who invest in organisations to gain a financial benefit • Governments that invest in organisations, provide tax incentives to foster employment and community benefit or provide infrastructure to allow organisations to operate effectively • Suppliers of goods and services to organisations • Customers and clients who purchase goods or services from organisations • Unions and employer associations Mainstream private-sector organisations and non-government organisations may seek profit which can then be returned to shareholders via dividends. However, charitable institutions and GBO may seek a different outcome such as quality, customer satisfaction, reaching those in a community who need support and aid. These can include hospitals, government employment facilities, building roads, military, police, ambulance operators, emergency-service organisations and so on. Each type of organisation may have different goals and objectives depending on its role, purpose, location and size. The one thing each organisation has in common is people. People add value to an organisation by bringing new competencies with them and transforming resources into the desired outcomes sought by the organisation’s owners and stakeholders. The people within an organisation utilise resources, including technology and information networks, industry makeup, organisation strengths and weaknesses, and access to capital to achieve the desired outcome and strategic direction whatever that may be. Without people organisations do not function (Singh, 2003). The desired outcome is achieved by the organisation selecting the appropriate staff and providing them with the resources and opportunities they need to be successful. They organise themselves around staff potential by integrating their structure, development opportunities, communication channels, division of labour, technology, training and education, remuneration and benefits, safe work environments and motivational strategies (Chiu, Luk, & Tang, 2002). Organisations attempt to choose the right staff and construct an internal environment where staff can optimise their talent and contribution to desired outcomes. This mutually dependent relationship is expressed in Figure 1.1.

18

Bernard O’Meara People

Performance

Figure 1.1:

Profit or other desired outcome

The relationship between people, performance and profit or desired outcome.

Organisations need to employ staff and optimise their performance to achieve the desired outcomes of the organisation. Thus strategic-based organisations spend time and resources to employ the right staff because employing staff directly impacts upon the organisation’s capacity to reach its desired outcomes. Recruitment and selection drive organisations to achieve strategic objectives or ‘success’. The better the candidate experience via the recruitment and selection stages, the better the outcome (The Hiring Site, 2012).

1.12.

Resource Maximisation Strategies

Organisations are constructed for specific purposes. They are structured, managed and have resources available to them internally or externally. Private-sector organisations (non-government organisations) have various stakeholders including shareholders who invest funds in order to receive a dividend. Some organisations are GBOs, which provide goods and services to the community. These can include the police, fire fighting, emergency service-based, postal, telecommunications, education and other like organisations. The goal of the GBO may be is to provide timely accurate advice and services to the community rather than a financial outcome. Other organisations include charities, professional bodies meeting member needs, the United Nations etc. Each organisation has a role, a purpose and is part of one or more systems. Private-sector organisations usually have a financial goal such as increasing shareholder equity, cost containment or maximising profit potential. The better an organisation achieves in these areas, the greater the value of shares and return on investment. However, while such organisations are designed to achieve outcomes there are different ways of achieving the same goals. Traditional microeconomic theory suggests that many private-sector organisations operate in one or more competitive environments, that is, local, nation, international and global. Organisations take inputs such as labour, raw materials and capital and these are transformed into outputs that maximises the profit of the organisation. The focus is on the outcome such as increased profit or cost-minimisation which can form the basis of organisational strategy (Ansoff, 1983). More recently, Resource-Advantage Theory and the eclectic paradigm have been used to explain competition between organisations in the same industry and how

Staffing, Systems and Strategy

19

one organisation better utilises resources to achieve a sustainable competitive advantage (Arnett & Madhavaram, 2012; Hunt & Madhavaram, 2012). The resource-maximisation strategy is primarily focussed on the core asset of any organisation — its staff. As the name suggests resource maximisation attempts to maximise the potential and capability of new and existing staff. Hence there is a greater emphasis on attracting, retaining and developing staff whether they are fulltime core staff only or the entire workforce of an organisation. If an organisation can attract, retain and develop the best people available within budget constraints then it can gain staff commitment by providing staff with support and motivation strategies including the following: • • • • • • • • •

Holistic development opportunities Training and education Challenging and meaningful work Career development opportunities Experiential learning Constructive feedback Recognition Remuneration, benefits and incentives ‘Fit’ between the short-, medium- and long-term goals of the organisation with those of staff where possible

While the above reflect the Hackman and Oldham (1980) model, the contemporary workforce still seeks similar benefits from organisations. Research confirms that organisations that are more progressive than their competitors will attract the better applicants. Such organisations are also more likely to attract a more diverse range of applicants including women and minority groups (Ng & Burke, 2005). The more strategic, people-oriented organisations not only attract the better applicants for vacant positions, they also become employers of choice. This means that the reputations of organisations, such as Google, are such that people prefer to work for them than their competitors. Again, this allows organisations to choose the best applicants. Employer of choice status is a form of branding that sets one organisation apart from others that may lead it to gaining better-quality applicants. While this is a marketing strategy adapted for recruitment and selection it can be a very effective means of differentiation between organisations when people choose to which organisations they wish to apply for a position (Wickham & O’Donohue, 2009). The resource maximisation model asserts that if an organisation can optimise the performance of staff and provide them with optimal conditions (technology, flexibility…) then natural outcomes of this maximisation will be lower costs and greater profit or other desired strategic outcomes. This may not be possible in all organisations but it provides the context to shift from focussing on outcomes to focussing of maximising staff potential and capability.

20

Bernard O’Meara

1.13.

Investing in People and Retention

It has long been noted that staff turnover results in high costs. More recently it has become apparent that when staff leave, an organisation they take with them all their accumulated knowledge, experience, networks, contacts and other competencies. In countries with an ageing workforce, this has become a critical issue as new younger staff need to be trained, developed and engaged over a period of time. Thus organisations are attempting to reduce the turnover of new staff as well as those reaching retirement age (Thomson, 2004). If one accepts that the performance of people drives an organisation to success then getting the right people becomes critical. Once employed it then becomes necessary for organisations to create strategies that will develop their staff and help retain them. From a cost perspective this makes sense as staff are employed to undertake specific roles as effectively and efficiently as possible. If high costs are associated with high turnover rates of staff, an argument can be put forward that retaining staff is as important as finding and employing the right staff. There has been a great deal of research attempting to explain the benefits to organisations of having their staff committed to goals, involved and engaged. Job satisfaction is extremely important. A lack of commitment, engagement and job satisfaction can have a negative impact on productivity, morale, staff turnover, quality, customer service and even the number of accidents in a workplace. Organisations are now spending more money on recruitment and selection in order to get the right staff. Once employed, organisations are devising strategies to increase their level of job satisfaction and desire to stay with the organisation. Certainly some of these strategies involve higher levels of salaries, wages and benefits but there are a number of other strategies that can be created. Research indicates that people seek the following: • • • • • • • • • • • • • • • •

Effective consultation and communication Involvement and participation Recognition of effort, contribution and achievement Supportive professional leadership Adequate staff levels so that workloads are distributed evenly Flexible work practices where possible Professional development More training and education Career development and promotion opportunities Autonomy and control over work practices More challenging work Constructive performance feedback Social engagement and interaction Job enlargement Work life balance Trust and respect

Staffing, Systems and Strategy

21

The above list is not exhaustive but is indicative of what people seek from their workplace aside from adequate remuneration. Different people want different things and if organisations seek a stable, diverse and effective workforce then knowing what staff value and what satisfies their needs is important irrespective of industry or job role (Applebaum et al., 2003; Leurer, Donnelly, & Domm, 2007; Sass, Seal, & Martin, 2011). If staff are engaged, involved, recognised and valued, then they are more likely to effectively contribute to organisational goals and strategic imperatives. These activities need not be expensive but employers responding to staff needs where appropriate may find that staff turnover may decline, costs and disruptions may be minimised and organisational standards achieved. In the United States, research indicates that a greater proportion of women are more than ever before seeking more challenging roles with more responsibility to meet their career aspirations. More employers are allowing staff to be more flexible in their start and finish work hours, as many women now have college degrees and the trend suggests that within five years more women than men will have college degrees. The gap between what men earn compared to women is shrinking, and while employed women still spend more time with children than do their male partners, this gap is shrinking too. More males are spending time with their children and seek a better work life balance. Both males and females share care of elderly relatives and as a consequence of an ageing workforce employers are responding to new needs of their workforce. As demographics change and people seek different work styles the more strategic employers attempt to meet these needs and reduce staff stress and turnover (Schwartz, 2011). The 2008, National Study of Employers (Families and Work Institute, 2008) shows that employers are providing their staff with Employee Assistance Programs (EAP) and, despite recessionary trends, some continue to provide assistance to employees with teenage children. Other activities include after-school programs, cre`ches, childcare facilities, summer programs, parenting programs, scholarships and education support. Programs and activities designed to provide greater job satisfaction, less stress, inclusivity, motivation and an enhanced work life balance may be costly, however, employers are engaging in these employee programs as there are long-term benefits. Organisations try to keep their staff longer and reduce costs and there are also benefits to staff morale, quality of service or product and commitment to organisational goals. The long-term benefits outweigh the short-term costs — it is worth the effort to achieve a sustainable competitive advantage over their competitors (Matos, 2012). In 2007, the global IT industry was worth an estimated US$1.7 trillion dollars and countries with growing economies like India began to identify more effective means of increasing and maintaining their share of this huge market. The National Skill Development Corporation (NSDC) commissioned a report on the HR aspects of the industry and India. This report focussed on the skill shortage gap between

22

Bernard O’Meara

what staff across the sector needed in terms of skills and the existing talent bank. Increasing the talent bank in the sector in India was considered crucial for any substantive growth to occur (NSDC, 2009).

1.14.

Traditional Approaches to Recruitment and Selection

Traditional approaches to recruitment and selection have not always been strategic in nature. Often decisions were made based on cost rather than attracting and retaining talent. In the early part of the 20th century Frederick Taylor analysed the division of labour and is credited with the construct of scientific management or Taylorism. Scientific management sought to reduce the level of worker autonomy and whole jobs were separated into integrated parts which could be undertaken by anyone with minimal training. Previously jobs such as those undertaken by craftsmen were overseen by the craftsmen themselves and if a worker left an organisation a new craftsman would be sought. Taylorism led to whole jobs being reduced to smaller multiple jobs that did not require a craftsman. This ‘deskilling’ allowed management to allocate work and to apply standards of time and effort to each employee. Instead of one person doing a whole job this was transformed into many people doing parts of the whole job. From a cost perspective this was efficient as if one person left another could be hired to replace them as little skill was required to perform the tasks. Power was transferred from craftsmen doing a whole job to management who were no longer fully dependent on one person Banerjee, Browne, Fulop, Lilley, & Linstead, 2004. People could be employed to undertake repetitive work at lower wages and these people could be replaced quickly and cheaply. Taylorism was of most benefit in manufacturing where the division of labour was clear and this approach can still be found in organisations today. As hiring staff was based on cost, this strategy can be seen to fit in with a management philosophy that staff are expenses, not assets. Characteristics of this are evident during recessions and the global financial crises when organisations lay off staff and reduce spending on areas such as training, development and education (Rao, 2009). Employees are now working harder and longer and even prior to the global financial crisis, research showed that middle managers were not satisfied with their jobs and were not even feeling valued. In many instances staff are hesitant to leave an organisation due to uncertainty about the future rather than staying with an employer because they are satisfied with their jobs (Cheese, 2010). However, the more strategically oriented organisations may indulge in countercyclical thinking. This recognises that competitors and other organisations may be laying off excellent staff. Having recognised this, the strategically oriented organisation may recruit staff rather than reduce their workforce. Such staff recruited in

Staffing, Systems and Strategy

23

harsh economic times would no doubt engage and commit to the organisation that employed them.

1.15.

Systems Theory

Systems theory was first posited by as a means of explaining the complexity, interaction and relationships between different groups. Its initial application was in mathematics and the sciences but has since been applied to a wide range of other fields such as organisational theory. A systems approach can be used to understand links between various parts of the system, the structure, processes, goals and outcomes such as transforming inputs of systems into outputs. Systems theory also uses feedback mechanisms or loops to aid in determining the effectiveness of the system overall.

1.15.1. What is a System? A system can be defined as the complex relationship between interconnected parts which transform inputs into desirable outputs via processes across the system itself and sub-systems. Each day people become part of various systems such as economies and the workforce or utilise systems such as vehicles and transportation (Gigch, 1974). An example of a mechanical system is a car. A car consists of various parts or elements that are interconnected and dependent on each other for the car to operate effectively. Cars need some form of propulsion such as an engine, a mechanism to steer with, tyres and suspension, so that the vehicle can move smoothly. It also needs a chassis to keep the occupants safe and free from inclement weather. Individually, the parts of a car are inert or achieve very little. A car battery is needed to operate the electrics in a vehicle and a steering wheel is needed to provide direction. A car needs all its parts fully functioning and working in unison for it to become a useful means of transport. A person is needed to start the car and use the parts in harmony to go to a specific location. Cars also need petrol or gas to fire the combustion engine and oil is used to ensure the engine parts run smoothly while water is used to cool the parts so they do not wear out prematurely. Each component is a sub-system of the whole system — in this case a car. Vehicles need fully functioning and operating parts in order to work. They need inputs such as petrol, oil, water and people to operate them. When all parts work together the system is functioning effectively and the driver evaluates a car’s performance via gauges that monitor temperature, fuel level, speed, water and oil levels or unusual noises that may indicate that a service is needed. While a car is a system it is also part of a much larger transportation system.

24

Bernard O’Meara

1.15.2. How Systems Work Systems can consist of several different components. Each part by itself does little but when combined with other parts they interact to provide a whole greater than just the sum of each part. In the vehicle example, there a number of sub-systems such as the electrical system and the fuel system which combine to create a fully functioning vehicle. Systems have parts and several parts can combine to create a sub-system. Systems also have inputs which are transformed into desirable outputs. One input of a car is fuel which is then processed and transformed into energy that propels the car. The input (fuel) is ignited and transformed into a gas in the engine while the output is motion. Each part of a car such as aluminium, steel, plastic, rubber is the result of other processes in the vehicle manufacturing industry. Manufacturers such as Ford, GM, Tata and Hyundai transform materials into outputs which, when combined, constitute a vehicle. Systems also have evaluative processes which allow for each component, subsystem and the whole system itself to be monitored and its effectiveness determined. These can also take the form of customer satisfaction surveys, feedback on quality, leadership surveys and even staff turnover. There are two basic types of systems. The closed system has no interaction with its environment as no inputs are taken from the environment so there are no transformation processes resulting in desirable outputs or outcomes. In contrast the open system recognises the environmental interaction and the need for human intervention to maintain the system. An organisation can be conceptualised as a system and there is interaction between an organisation and its external environment. Organisations buy goods and services from their environment or community as well as providing goods or services for sale. There is constant interaction between organisations and their local, national or international communities or environments. This interaction or exchange is outlined in Figure 1.2. Local, national, global environment

Inputs

Figure 1.2:

The organisation processes

Outputs

A basic outline of the interaction between an organisation and its environment, and other systems.

Staffing, Systems and Strategy

25

Inputs from the environment into an organisation may consist of: • • • • • • • • •

Staff Materials Finances Information Clients Suppliers Education facilities Industry intelligence Government subsidies and tax relief

The organisation utilises these inputs and processes them as outputs. Examples include: • Transforming material into desirable commodities (goods and services) • Using financial resources to fund growth and expansion • Using information such as demographics to determine the best geographical location to acquire staff, infrastructure and other services • Clients purchasing goods and services and signalling to the organisation the acceptable levels of quality, quantity and purchase prices which in turn inform cost structures • Suppliers selling raw materials or provide services to other organisations that can then be transformed into saleable goods and services • Education facilities providing their communities with the requisite competencies, talent and potential to meet the future needs of organisations • Industry intelligence being gathered about competitor strategies, declining markets as well as new and growth market opportunities • Governments can provide organisations with tax and other incentives to locate into communities and contribute to the standard of living of the community. Through the provision of internal training, education, promotion and learning opportunities, organisations add value to their staff and signal to the community the characteristics of potential new staff that are considered desirable by the organisation • Input into and the maintenance of a local, or national, economy • Enhancing or increasing standards of living via wages and salaries of staff The interaction is required to maintain and define the organisation and aids in determining its strategic direction. If the nature of the interaction adds value to the organisation then it will most likely achieve growth and longer-term stability, if not, it may result in the organisation losing its sustainable competitive advantage. A system is dynamic and proactive to change (Olve, Wetter, & Wetter, 2000; Robbins & Barnswell, 2006).

26

Bernard O’Meara

1.15.3. The Application of Systems Theory to Recruitment and Selection Systems theory is useful in understanding the dynamic relationship between organisations and their environments through recruitment and selection. The staff who work in organisations are drawn from the external environment and they provide new competencies, networks and opportunities needed by organisations as they respond to local, national and global economic trends, growth and sustainability. This is a dynamic relationship impacting the community economies, standards of living, employment, education and individual and/or family disposable income. While systems theory has evolved, its fundamental principles can still be applied to staff recruitment and selection. Its holistic approach gives an overview of the complete system and helps crystallise the numerous relationships and interaction contained within recruitment and selection. An outline of this dynamic relationship is given in Figure 1.3. It is a complex system which is part of larger economic, social, and national global systems while staffing, recruitment and selection link organisations across a broad range of other systems. In the first instance, staff are drawn from the community (external environment). The long-term stability of new staff reduces organisational costs and new staff form part of the talent pool that drive the organisation’s success or, in some cases, its demise. Feedback loops allow the overall system and its subsystems to be monitored and evaluated. In the application of systems to recruitment and selection feedback loops allow the organisation to compare what it sought in applicants and what the outcome was. Each part of the system can be evaluated to determine where improvements could be made. The continuous feedback loops allow organisation to engage in a Kaizen or continual improvement strategy to maximise the potential of the system. Local, national, global environments, competition, new markets, new industry trends, regularity requirements, community expectations, economies, sustainability, stakeholder expectations, changing demographics

New staff

Induction Training

Figure 1.3:

Staff leaving

Performance review, gains or shares new knowledge/competence value adding achieve strategic goals

An outline of the system involving an organisation, its environment and staff.

Staffing, Systems and Strategy

1.16.

27

Alternatives to Recruitment and Selection

At times organisations may consider it more advantageous not to use recruitment and selection to appoint a person to a vacancy. This may be due to cost constraints or there may be more effective means of dealing with the tasks and responsibilities required by a job. Alternatives may include the following: Crowd sourcing Crowd sourcing is the use of the internet to provide people with expertise, anywhere in the world, with work that can be undertaken via computer. An example is where publishers seek manuscripts to be proofread or edited. This work can be undertaken by those with expertise in any country and the completed work returned and completed to the publisher. This can be cost effective as people compete for the work and try to undercut rival bids on cost, timeliness and experience. Experiential learning opportunities When a vacancy arises, organisations may decide to put a person in the role for a short period in order to provide that person with a valuable learning experience. Gaining a greater understanding of an organisation may be deemed appropriate for those being prepared for a more senior role such as a general management position. The learning experience can help incumbents appreciate the contribution that different parts of an organisation make and give them a crisper overview of the organisation and its strategic imperatives. Job sharing It is not unusual for organisations to allow two or more staff to share a position. It is common in the retail and other sectors where two or more people share a role by each working half the full-time. In this way if one person is ill or leaves there is at least one other person who can fill in full-time. Thus the position is likely to be covered in most circumstances. Leasing Leasing, especially executive leasing, has become popular. This may involve leasing an executive for a specific period of time. Senior managers and executive staff who are not employed full-time can be leased to fill vacancies so there is a minimal disruption to the organisation. These people stay in the role until a permanent appointment is made, the project they work on is completed or they are offered fulltime employment. This allows an organisation to evaluate the person’s performance before making long-term commitments.

28

Bernard O’Meara

Outsourcing Outsourcing became very fashionable in many countries during the 1980s and 1990s. Outsourcing means paying another organisation to undertake work. Major department stores in many countries found it cheaper and easier to outsource areas such as security and cleaning to other organisations that specialise in these areas. It made sense to divest an organisation of duties that were outside its core activities while employing another organisation to undertake these responsibilities. Outsourcing frees up working capital as organisations reduce staff numbers and employment costs. The specialist organisations that were given the outsourced duties sought to provide services to a broader range of organisations and thereby cover their own employment costs and overheads. More recently in the United States many organisations have stopped using outsourcing and are again employing staff in these areas in order to have better control and maintain standards. With respect to the aging population, organisations have found it better to reemploy or employ retired staff who already have experience and a working knowledge of the jobs they undertake. Promotion When organisations have an employment vacancy there may be a person already working with them who has the requisite knowledge and competence to successfully undertake the role. Those able to be promoted would normally have worked in a similar role or in a role reporting to the position now vacant. Redistribution of tasks and responsibilities It may be that some staff may be able to take on more tasks if an analysis shows that they are able to do so. Increasing the workload of a person who is already busy can lower morale, productivity and can increase anxiety, sick leave taken or even more accidents and termination of employment. Thus before redistributing the workload of a vacant position to other staff, it is necessary to analyse the full workload of other staff to ensure they are not overloaded. This may result in distributing the workload to as many people as possible in order to minimise the impact on individuals. Staff ambassadors In many instances, staff working in a particular industry or profession are aware of other people in key roles in other organisations. Staff ambassadors from an organisation can discretely approach such people and determine if they are interested in moving to another organisation or if they know other suitable people who might be interested in moving to another organisation. This is an informal means that uses networks and contacts to identify suitable candidates and builds upon personal contact. Personal contact may prove to be effective as those being approached may be influenced by the resolve of the staff ambassadors to discuss career changes in favour of their organisation.

Staffing, Systems and Strategy

1.17.

29

The Strategic Approach

1.17.1. What is Strategic Management? A strategy is a plan designed to achieve specific goals for an organisation. There are many different types of strategy such as corporate, operational, financial and people-based strategies. Strategies stem from an organisation’s mission — what the organisation was created to achieve. Once strategies are constructed, organisations commit financial and other resources to achieve the desired outcomes. The strategy gives an organisation its direction and all parts of the organisation are aligned to this strategy including its people. However, strategies need to be monitored, evaluated and modified as unexpected changes occur. Strategic management is a means of evaluating an organisation’s performance in its industry or in its environment and determining policies and practices that lead to enhanced or increased performance. A more precise definition of strategic management is: The process of identifying, choosing and implementing activities that will enhance the long-term performance of an organisation by setting direction and by creating ongoing compatibility between the internal skills and resources of the organisation, and the changing external environment in which it operates. (Viljoen & Dann, 2000, p. 5) The strategic approach is long-term, and over time, strategies may need to be modified due to a misalignment between internal resources over which the organisation has control and the external environment on which it has little or no control.

1.17.2. Aligning People and the Organisation Organisations do have control over the talent of their workforce by recruitment of new staff with new talent or by developing, training and educating existing staff. If the performance of an organisation’s people drives its success then before committing to a strategy it must first have the right people. Effective recruitment and selection can achieve this and align new staff with the strategic direction of the organisation. This synergy leads to a matching of the organisation’s short-, medium- and longterm needs with those of its staff. The synergy may not be achieved in all cases and may dissipate over time; however, the overall synergy is important if an agreed strategic goal is to be achieved. As people are the means for an organisation to achieve strategic imperatives then each time a person is employed, there should be a very clear relationship between the person’s role and their goals and those of the organisation. Many recruitment and selection practitioners do not, in fact, undertake longterm strategies. Instead they undertake short-duration-focus strategies. An example of a focus strategy is where five staff need to be recruited within the next two

30

Bernard O’Meara

months in order for a project to commence. In this instance the duration is short — two months — and once completed the focus strategy is complete. There is a start point and a date by which the recruitment needs to be completed. In some instances this may be referred to as a recruitment and selection campaign or strategy. This handbook refers to strategies as being long-term and needing to be managed.

1.18.

Sustainable Staffing

In a business sense, sustainability refers to the way an organisation reflects social norms regarding the environment, its resources and its future. This responsibility is not a management add-on but is embedded in the culture, practices and strategies of the organisation (Quinn & Dalton, 2012). Organisations are considering sustainability in a variety of ways. The term usually applies to environmental factors and how organisations manage this impact via social responsibility. Some organisations are differentiating themselves from other organisations by publicly recognising their impact on the environment and community. This may be viewed as a branding device that the community can identify with and appreciate efforts made by such organisations (Galpin & Whittington, 2012). Other organisations are linking sustainability with leadership and management responsibility in recognition that stakeholders expect organisations to consider this issue at the highest level of an organisation. In the broad sense, sustainability is about protecting resources and minimising the degree of negative impact that organisations can have on them. There is a balance between organisation goals and those of the community. Recruitment and selection can be a means of instilling sustainability into the culture, practices, strategies and values of an organisation. At another level, organisations, through recruitment and selection, can nurture and grow the relationship between the organisation and its environment. Employers of preference are seen to value the environment, their staff, clients and suppliers. They create mechanisms to protect these relationships to the benefit of all parties.

1.19.

Organisational Diagnostics

When a vacancy arises the cause of the vacancy needs to be determined. As part of a strategic recruitment and selection process any negative issues that may arise for a new employee need to be addressed. Where the person left an organisation for reasons beyond the ambit of the organisation, a clearer understanding still needs to be gained. In a staff-friendly environment, staff should not fear repercussions of advising the organisations that they want to leave. However, staff may not give a true reason for leaving as it might impact the reference checks or future employment opportunities.

Staffing, Systems and Strategy

31

Reasons for voluntary departure of staff are many but may include: • • • • • • • • • • •

Job expectations different from what the person expected when employed Poor supervision Poor communication Lack of advancement Seeking higher salary, wages and benefits Group exclusion and isolation Little job performance feedback Personality clashes Harassment, bullying High workload Poor working conditions and environment

When a vacancy arises the cause of the departure needs to be determined prior to recruitment and selection. Otherwise, if the problem is not identified and rectified there is a high probability that new staff will encounter the same issue and leave as well. This increases costs and may lower morale but continual turnover may indicate the person recruiting new staff is not effective. It may also negatively reflect on their reputation and credibility within the organisation (Bratton & Gold, 2007). Problems may not be identified through exit interviews, surveys or questionnaires or discussions with supervisors and work colleagues. However, if a strong personal rapport is established with staff across the organisation, the person recruiting new staff may find clues as to why turnover occurs regularly in certain areas. The person should then be empowered to remedy the causes of the turnover.

1.20.

The Role of Strategic Staffing Using a Systems Approach

In highly competitive environments, organisations are seeking to differentiate themselves from competitors and recognise that staff and applicants will provide the organisation with a sustainable competitive advantage. The performance of people determines success in achieving strategic objectives. As organisations develop strategic business plans of 5 20 years or more, effective strategic recruitment and selection provide the staff with the qualifications, expertise and knowledge to aid the organisation in achieving its goals. The staffing needs of the organisation are factored into strategic plans so that the strategy is continually supported by the right staff. Finding, attracting, developing and retaining the best staff need to be strategic in nature to match the future needs of the organisation with the people whose performance will drive the organisation to success. Each part of the recruitment and selection process can be reviewed to ensure that the best candidates are attracted to an organisation. While recruitment and selection

32

Bernard O’Meara

are integrative systems, they are part of a much larger system involving the organisation and its environment. Recruitment and selection intersect the boundary between the organisation and its environment. This enables applicants from the external community to be considered for employment. Systems allow us to understand the relationship that exists between the organisation and its environment. In terms of recruitment and selection an exchange occurs when new staff are employed. Organisations spend vast sums on attracting the best applicants. Further funds are allocated to salaries, wages, benefits, training, education and development, health programs and other employer funded requirements. This part of the system allows organisations to employ staff who will effectively drive the organisation to success. The organisation benefits in the long term as it invests in staff retention and achieves its financial, growth or other desired outcomes. The organisation adds value to its staff through investment. Recruitment and selection also signal to the community, training and education providers the qualifications, knowledge and experience that the organisation values when it seeks to employ new staff. These signals are then transformed by colleges and universities into training and education courses to equip staff with the competencies they will need. Governments may provide tax and other incentives for organisations to increase employment levels in the community or provide infrastructure to support organisation operations. This exchange impacts the local and national economies, government policy, education standards and community growth. The staff members benefit in terms of salaries, wages and benefits and employment can provide financial security to staff members and their families. Employees will then spend their income on consumables, holidays, self-education, childcare, eldercare and to enhance their standard of living. The salary paid to staff not only impacts these areas but also impacts the social status of staff. The better paid an employee is, the more the person will be able to afford. Typically this can mean residing in a more affluent neighbourhood or being able to afford things that others cannot. There is a link between employment, remuneration and social status and this signals to the community how much an employee is valued by an organisation. Those employed on lower salaries will not be able to afford what better-paid employees can and this will restrict their level of disposable income. The signal sent by the organisation is that these employees are valued less. To gain better salaries employees will try to develop new competencies, knowledge and experience that the organisation is seen to value via recruitment and selection. As new staff are hired, the impact upon the organisation/environment system has a ripple effect across both components. The system concept allows these effects to be identified, considered and addressed where necessary. Systems also have feedback loops which form a kaizen process of continual improvement and in the case of recruitment and selection each subsystem can be monitored and evaluated to optimise the fit of new staff with the organisation.

Staffing, Systems and Strategy

33

A strategic approach to recruitment and selection within a systems framework provides a far deeper understanding of the acquisition and retention of the best applicants and the broader impact on the community, organisation and the staff themselves.

1.21.

Summary

Organisations are driven to success by their staff. It is the ideas, creativity and commitment of staff that help organisations achieve their desired goals. Therefore one of the most important decisions made by organisations is which applicant to employ. Recruitment and selection creates a talent pool of staff who will work in, lead and manage the organisation in the future. Therefore recruitment and selection needs to be strategic in nature. There is a direct link between the performance of staff and the achievement of organisational goals. The process commences by recruiting the right staff, maximising their potential and providing them with the tools and development necessary to be successful. The link between people, their performance and the achievement of strategic goals leads into a resource maximisation approach. Resource maximisation has current and future staff at its core. Instead of focussing on outcomes such as profit, the focus is on getting the right staff and investing in them to achieve a strategic and sustainable competitive advantage. It is useful to view organisations, their staff and their community as interdependent parts of a complex system. The interaction between the system components explains how organisations are dependent on the community and vice versa. Staff are part of both the external community and the organisation and therefore part of multiple systems. Aligning the short-, medium- and long-term goals of both staff and the organisations creates mutual stability and a commitment to the future. Strategic and sustainable recruitment and selection matches both sets of goals and this synergy is more likely to lead to a successful outcome for staff and organisations.

1.22. 1. 2. 3. 4. 5. 6. 7. 8.

Review Questions

What is staffing? What is recruitment? What is selection? Describe a system? What is sustainable recruitment and selection? What is strategic recruitment and selection? Why are recruitment and selection critical to an organisation? How does appointing staff to an organisation benefit the community?

34

Bernard O’Meara

9. What is a management philosophy? 10. What are the benefits and disadvantages of a systems approach to strategic recruitment and selection? 11. What are the alternatives to recruitment and selection? 12. What is meant by organisational diagnostics? 13. How can new staff add value to an organisation? 14. How can an organisation add value to its staff? 15. Are staff the greatest asset an organisation can have?

1.23.

Learning Activities

The following learning activities may require discussion with employers of those reading this handbook while some others require interaction with an organisation and may require ethics or other forms of permission. Before undertaking such activities please check with your employer or academic first. 1. Reflect on your own experiences of undergoing recruitment and selection. What aspects were constructive and which were less constructive. Did you feel valued through the process? 2. Are there employers of choice you would like to work for? Why do you believe these are employers of choice? Reflect on, and discuss, these. 3. Identify ways in which local organisations impact the environment and your community. Discuss these.

Chapter 2

The Organisation Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Understand the complex relationship between an organisation and its environment • Understand the impact of organisational antecedents on recruitment and selection • Appreciate the reputation of organisations in attracting new staff • Be able to analyse and evaluate an organisation’s capacity to create succession pathways • Create internal strategies to identify core staff of an organisation • Understand the link between culture, structure, and management philosophy with recruitment and selection

2.1.

Introduction

An organisation consists of two or more people creating a legally recognised entity that has a specific purpose. The purpose of the organisation need not be to benefit the staff who work for the organisation, instead the purpose is to benefit the shareholders and stakeholders who created the entity (Robbins, Judge, Millett, & Boyle, 2011). This legally defined purpose can be at odds with community norms and expectations; however, the purpose of the organisation defines what the organisation is there to achieve. Management then goes about achieving this purpose in reality by transforming resources (raw materials, knowledge, expertise …) into desired outcomes to achieve the organisation’s purpose of existing.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

Bernard O’Meara

36

This chapter will discuss the role and purpose of organisations, their structure, culture and interface with the environment. It will create the context in which strategic recruitment and selection occurs and the nature of the organisation in which new staff find themselves once appointed.

2.2.

The Organisation

Being employed by an organisation provides many benefits for most people, in whatever country they may be located. These include: • • • • • • • • • • •

Income Training and education Social interaction Career opportunities Recognition Knowledge Contacts Expertise Promotion Social status Self-esteem

At the global level countries compete with each other to attract investment in order to sustain their economies and to realise the potential of their resources. The Global Financial Crisis illustrated how interdependent countries are on each other and how a decline in one country can cause a decline in one or more other countries. This also highlights the interconnectedness of a global system. An excellent example of a country seeking a strategic imperative and unifying and integrating all parts of the nation can be found in Malaysia’s Vision 2020. In this instance the Prime Minister of Malaysia, Dr Mahathir Mohamad (1995), viewed the Vision 2020 as a means of gaining a collective benefit to all Malaysian people in terms of economic growth, education and standards of living. Malaysia sought to be recognised as a developed country in 30 years by identifying and developing national strengths and investing in the future. Another example of this systemic interdependence between countries is the dependence of Europe on the supply of gas from Russia. This is an example where one country has exploited its resources and exported them to countries without the same resources. Russia receives more than income for supplying its gas; this also provides Russia with political and economic leverage when dealing with countries dependent on its gas production and flow (Schaffer, 2008). Organisations exist in every country in both the government and non-government sectors. Often organisations are centred round industries or the particular strengths of countries in which they operate and collectively these organisations can provide a

The Organisation

37

country or one of its industries with a sustainable competitive advantage (Porter, 1990). At the national and local level, organisations employ staff and pay wages and salaries to their workforce. These staff pay tax and spend their income and in doing so sustain local and national economies. Organisations also pay tax but influence and interact with the community in other ways as well. In the United States, McDonalds and other restaurant owners are building green design restaurants that comply with the US Green Building Council’s Leadership in Energy and Environmental Design Gold standard. In this way they recognise social expectations and their social responsibility to the community to be ‘green’ (Liddle, 2011). Many organisations provide support to charities, community groups and their projects, provide sponsorship to sporting groups and individuals and help recognise the contributions that individuals make to the broader community. In some instances these organisations are marketing themselves as responsible corporate citizens while other organisations may undertake these roles to project an image of community engagement but at a very superficial level. All organisations, irrespective of their size, operate within multiple environments and multiple systems. Very small organisations operate principally within their immediate geographical location and therefore their local community. These small organisations still buy and sell articles, provide services or provide other organisations with goods or services. They employ staff and need to comply with relevant local, state and national legislation such as health and safety laws. Small organisations may need accounting firms to maintain their records for tax and audit purposes while they may seek funding from banks or other financial lending providers. Their staff may belong to unions or the organisation may be a member of an employer association. Competition may be limited but small organisations still need to be competitive and cost sensitive to avoid losing customers. Even very small organisations are part of multiple systems. In terms of employment and the labour market, small organisations need to attract the right staff for their business. However, before recruiting staff, small organisations still need to decide how they will contact and attract candidates, whether the employees will be casual, part-time or full-time and what wages or salaries can be afforded. Will staff be paid in cash or by Electronic Funds Transfer (EFT) into bank accounts and will they be paid weekly, fortnightly or monthly? Local, state or national legislation may set out minimum standards of employment which need to be known and complied with. Larger organisations may operate across multiple states or countries and will need to be aware of the different legislative requirements of each state or country and comply with these. These organisations still need to decide if they will employ staff on a casual, part-time or full-time basis or a mix of these. Other decisions include whether the prevailing culture and structure in the corporate centre of the organisation should be embedded in operations in other countries. Will different cultures and structures in different countries be effective or desirable or would a uniform approach be more manageable?

38

Bernard O’Meara

International and global organisations then need to decide if they will use existing staff from other countries to head up new operations or whether local staff will be appointed and trained. These types of organisations have wrestled with such considerations well before they have opened operations in other countries. This is reflected in the efforts of organisations trying to understand business practices in China. The Chinese economy is now one of the three largest economies in the world. To capitalise on this growth, many foreign-owned organisations have opened operations in China and have had to learn about the labour market, labour laws, business to business practices, work ethics, wage and salary expectations and even Chinese philosophy (Chan, Ko, & Yu, 2000; Wang & Hong, 2009; Yau & Steele, 2000). The impact of foreign-owned organisations on China has been dramatic, especially on the state-owned enterprises. Lifelong employment and financially supporting retired employees and their families have given way to market-driven, competitive cost-oriented practices. Changes in organisational practices have impacted virtually every aspect of Chinese life and the way business is conducted. However, while China has changed due to the practices of foreign-owned enterprises, these enterprises have had to learn about the Chinese way of life, community and issues affecting staff. In order to attract and retain staff, foreign organisations need to understand the community and environment in which they now operate as well as the individuals they employ. Research has shown that despite the dissemination of best practice recruitment and selection standards by multinational corporations (MNCs) in China, at times these organisations inherited older, more restrictive work practices, especially when employing staff who formerly worked for a state-owned enterprise. The same research suggested that high-tech organisations were creating links with colleges and universities to source new graduates, which is a common practice in other nations. However, senior managers for these organisations had to be headhunted as the number of Chinese senior managers able to understand and operate in the international arena were relatively few. The education system at that time was not providing technical graduates with sound knowledge of management. Major change takes time (Rovoi, 2008). An organisation of any size is part of a larger system and management needs to understand the forces at work both within the organisation itself and in the environment in which it operates. This aids in better understanding the community and environment from which its staff comes. It is evidenced by employers in China identifying the lack of competent technical candidates in the general populace and overcoming this by forging links with universities and colleges to source graduates.

2.3.

Organisation Change and Growth

At one time or another, organisations start as small enterprises. In a small enterprise the owner/manager employs staff personally and is familiar with all jobs within the

The Organisation

39

organisation and all aspects of it such as bookkeeping, leaves available to staff and its customers and suppliers. The owner/manager needs to know all functions of the business and therefore communication may be frequent and informal, structure would be minimal and employee involvement in decision making would occur frequently. This type of organisation was called a simple structure by Mintzberg (1983). In this case the owner/manager may more easily identify the need for change and use personal beliefs and intuition to determine the type of change to take place, the rate of the change required and how best to implement the change. This occurs as organisations respond to their changing environment and attempt to align internal strengths with external pressures. This change may be incremental and planned or it may be unplanned but is necessitated by other pressures (Waddell, Cummings, & Worley, 2011). As organisations gain more business they grow both in terms of staff numbers and in complexity. This process signals the need to formalise the organisation in terms of communication, hierarchy, job roles and strategy. Instead of being reactive to client needs and other external factors, the organisation will map out a business strategy and commit funding to this in order to sustain growth. The focus of the owner/manager may change from a hands-on style to a more administrative- and management-oriented approach once the decision to grow the organisation is made. As formalisation continues, the skill set of the owner/manager may need to change as a different skill-base is required to foster growth and identify appropriate strategies. This skill set may be acquired through recruitment and selection if current staff do not have the appropriate skill set. Growth forced by competition or opportunity necessitates change and places the organisation in a dynamic environment. Mergers may lead to an organisation with the strengths of all parties and weaknesses offset to maximise business potential. Worrall and Cooper (2001) argue that the ability of a business to survive and sustain competitiveness is dependent on how quickly managers can develop new skills and use these effectively. If organisations do not develop staff and equip them with the knowledge and expertise necessary to meet externally driven forces then business survival may be compromised. Staff drive organisations to success. Understanding the interaction of the organisation and its environment takes time and often managers and leaders do not have the time to reflect on major strategic issues unless they are forced upon the organisation by internal or external changes. Thus leadership and management development programs have greater impact in an organisation where activities are valued and encouraged by the organisation’s culture, management and leadership philosophy and the ongoing reflection on the strategic direction of the organisation. Leadership and management development undertaken in isolation from the development and review of the organisation’s strategic plans, may not lead to a successful outcome. A complete and integrated holistic approach is most likely to succeed. The development and experiential learning of staff once recruited is critical to organisational performance. Hence, development and retention strategies need to be considered prior to recruitment and selection being undertaken (Brown, 2005; McGurk, 2010).

40

Bernard O’Meara

The skill acquisition may in part be obtained through training, education, seeking advice from consultants, research, interaction and discussion with other business professionals and through government or industry-specific groups. Alternatively those with the requisite knowledge, skill, networks, contacts and expertise can be acquired through recruitment and selection. Change is not always desirable or beneficial to organisations, and management must decide if change is necessary to adapt to new pressures on the organisation or if inertia is preferable. Either strategy is legitimate depending on the cause and impact of change (Schwartz & Shulman, 2007). One of the decisions that needs to be made by management is the strategic direction of the organisation as this will have a major impact upon the organisation, its staff, clients, suppliers and the immediate environment.

2.4.

Strategic Options

Options to change strategy can occur when new opportunities are available to an organisation. This can happen when competition necessitates a strategic response or by the desire to enter new markets, to sustain growth or to consolidate resources and direction. When an organisation commits to a particular strategy, it commits current and future resources to achieve the desired outcomes of the strategy. This ties up capital, and hence organisations may spend a great deal of time on analysing the strengths and weaknesses of their organisation as well as new external opportunities and threats to its competitiveness (strengths, weaknesses, opportunities and threats (SWOT) analysis). To achieve this, the organisation’s management and leadership need information about its competitors, its industry and other environmental pressures impacting upon the organisation. Change needs to be planned as a strategic activity as it will impact almost the entire organisation. This type of analysis can be used in determining how best to allocate resources and to adapt to external pressures. The internal review of an organisation’s strengths and weaknesses can in itself identify areas of an organisation that can be gainfully exploited or areas where resources can be reduced as that part of the business is stable or in decline. The review or discovery of new external opportunities available to an organisation, or threats to its success, can aid managers in deciding on the most appropriate strategic response to these pressures. The determination of organisational strengths will generally revolve around staff with high levels of morale, motivation and commitment to strategic goals. These people form the core of success as they strive to ensure the organisation is successful in its endeavours. Areas of weakness within an organisation need not necessarily mean that staff are not performing. Instead that area of an organisation may operate in a mature market where minimal investment is necessary. The analysis may provide management with clearer insights into organisation performance and aid in their decision making. However, the organisation needs leaders and managers who can correctly interpret information gained through

The Organisation

41

a SWOT analysis. It also requires staff who have an oversight of the organisation, its competitors, influences and who can determine appropriate strategic responses. As staff rise in an organisation, the skill set they need changes from a more handson approach to a strategic approach. An organisation can add value to its staff and the staff, in the long-term, can add value to the organisation (YukL, 2010). Threats can come in the form of new competition, a change in strategy by an existing competitor, changing societal trends, government plans and policies, economic decline, political change or the development of new technology acquired by competitors (political, economic, social, technological, environmental and legal (PESTEL) analysis). The more knowledge staff have of external forces impacting upon the organisation, the better they can plan and respond effectively (Barney & Hesterly, 2006). The SWOT and PESTEL analyses allow organisations to protect core areas of the business including staff and to redeploy resources, including staff, to areas where they are needed. Organisations tend to place their best staff in areas facing the greatest challenges and they tend to provide such staff with the technology, tools and support they need to see the organisation achieve meaningful outcomes. This is an example of the resource maximisation model at work. Once an organisation decides on the goods it will manufacture or services it will provide, another major strategic decision needs to be made. The decision to adopt a cost minimisation (cost leadership) strategy or a high-quality strategy impacts greatly upon the staff of an organisation.

2.5.

Porter’s Generic Strategies

Michael Porter has made a huge contribution to the concept of strategic management and in particular how organisations position themselves in relation to competitors. The greater the number of competitors in an industry, the more profit will be eroded trying to remain competitive. Thus organisations will seek new markets and different industry sectors where competition is less. They may seek to be a leader in a particular industry or be comfortable with their market share and not seek growth or new product development. In order to outperform competitors, organisations establish a uniqueness that is sustainable or do things differently and better than their competitors (Banerjee, Browne, Fulop, Lilley, & Linstead, 2004; Porter, 1996). Porter also developed three generic strategies which could be used to describe the way in which organisations capitalised on their strengths to leverage competitive advantage. The strategies are generic in that they can be used in different industries by organisations at the business-level unit. 2.5.1.

Focus Strategies

The first, a focus strategy, is one that targets a particular audience or market segment and is focused on securing excellent outcomes for that particular target.

42

Bernard O’Meara

The generic focus strategy may result in high client satisfaction and loyalty as the strategy focuses attention on serving that client group or market segment as well as it can. An adapted version of the focus strategy was given in Chapter 1, which also has a strong and narrow outcome-based approach, but is of short duration, whereas market focus strategies tend to be long-term.

2.5.2.

Cost Leadership or Cost Minimisation Strategies

The second generic strategy is the cost leadership or cost minimisation strategy. This particular strategy describes an organisation which has achieved cost effectiveness or minimisation and provides goods or services at a lower but sustainable cost in relation to competitors. To maintain this cost advantage, organisations need to continually seek to minimise costs wherever possible including investment in new technology. The cost minimisation strategy relies on high-volume turnover to sustain a lower margin of profitability. This means selling more goods at a lower price. However, if demand declines, markets change or such organisations enter a national or global economic decline then costs need to be reduced. The Society for Human Resource Management survey of October 2008 indicated that 60% of the 228 survey respondents were preparing to cut costs in respect of morale and team-building exercises. Forty-Eight per cent would cut costs to professional development, 42% would cut training budgets and 41% would scale back on recruitment (Zeidner, 2009). It is a common practice in many countries for cost minimisation-based organisations to reduce their workforce numbers as well as HR-related costs in order to ride out economic decline. Porter noted that operational effectiveness can be found through increasing employee morale and motivation and by having a management with a greater insight into organisation activities. Terminating the staff with the skill-base required to reboot the organisation once the period of economic decline ceases will negatively impact upon cost and organisation performance in the long term (Porter, 1996). An organisation utilising a cost minimisation strategy needs to maintain lower costs. These costs include recruitment, selection, staffing, development and retention strategies and activities. A signalling theory model would suggest that these cost reductions may be perceived by the community and external environment as indicating that staff are not valued there. This could lead to fewer people applying for positions in that organisation, unless circumstances dictated that they had no choice but to consider all options. Outsourcing IT facilities to growing countries like India benefits the Indian economy but may negatively impact on the organisation and country outsourcing these facilities. Internally, staff would also interpret these activities as signals that only their performance was valued not their entire contribution to the organisation. This belief would be enhanced as funding for morale, motivation and team-building activities were cut as well as staff development and recruitment costs being reduced. As staff were laid off, the remaining staff may feel the need to work with minimal disruption

The Organisation

43

to portray to their employer that they were loyal and hard-working. Management control may then be more easily utilised. The cost associated with employing staff may be the most significant cost that some organisations experience. Thus when a high-volume, low cost, low profit margin organisation faces a recession it has no choice but to reduce staff levels and all associated costs. It may also have heavy financial commitments tied up in new technology to help it remain a low cost producer. However, the link between strategy and people is clear.

2.5.3.

Differentiation Strategies

Porter’s last generic strategy is the differentiation strategy. This strategy requires an organisation to provide a product or service not offered by competitors. It is unique. An excellent example of the differentiation strategy is the domination of Russia in space tourism. Russia has capitalised on a major strength in that it can take paying clients to the International Space Station. It is unique and has no current competitors so those with the wealth to afford a trip into space have only one choice (Goldman, 2001; Oberg, 2011). Because differentiation strategies are exclusive but people still want to purchase the product or service the profit margin will be greater than that received from a cost minimisation strategy. Increased profit margins allow these organisations the capacity to invest in technology, research and development in order to maintain the exclusivity and higher standards of quality. This quality includes the core of the business — its staff. Organisations pursuing a differentiation strategy are more likely to invest in people particularly in respect of recruitment and selection. It is more important for these organisations to get the right people so they can invest in them, add value to them through development strategies and in doing so equip them with the skillbases needed to maintain the organisation’s dominance. In this type of organisation there will be a need for exceptional talent and continuity of the workforce. While paying a premium for the goods or services, clients will expect excellent client service, communication and interpersonal skills and in respect of the Russian space tourism they would expect high-order technical competence, training and a paramount focus on health and safety. Clients would want to build up a personal rapport with individuals rather than continually dealing with new staff. Clients need to have confidence in the staff they deal with, the organisation practices and would expect very high standards. This can be achieved by getting the right staff through recruitment and selection, developing them, retaining them and gaining commitment from them to achieve high standards of excellence. Investing in staff this way motivates them to retain high standards and achieve a higher level of quality than would otherwise be obtained. This approach is moving towards resource maximisation. To build an organisation with a differentiation strategy with high standards takes time. The first step is to attract and appoint the right staff. However, ‘the right staff’

44

Bernard O’Meara

would have expectations of their own in return for providing quality and excellence. These may include good wages and salaries, work autonomy, personal development, flexibility and security. While some would be content to work part-time or job share the majority would seek security through full-time employment. Outsourcing may be used but the potential loss of control by the organisation may mean that the opportunities for outsourcing are limited. In these organisations there would be a greater emphasis on training and education, gaining broader experience and the development and implementation of strategic planning. McGurk (2010) argued that organisations need to invest in staff, develop their knowledge of the organisation, its strategy, and its external environment. He also noted that these work best where there is a culture and philosophy that support staff and management development so the psychological contract between the organisation and its staff is strong and positive. The cost leadership and differentiation strategies are polar opposites. Porter argued that organisations attempting to use both strategies (integrated strategy) would get stuck in the middle and not be good at either. More recent research supports Porter’s argument that an organisation using an integrated strategy would not perform as well as an organisation adopting a cost or differentiation strategy (Nandakumar, Ghobadian, & O’Regan, 2010).

2.5.4.

Implication of the Choice of Strategy

There are clear implications for recruitment and selection that flow from an organisation’s choice of strategy. The relevant characteristics of a cost minimisation strategy are that they strive for the lowest cost and have tight profit margins which are dependent on high-volume production or service. They are sensitive to changes in market demand and in recessionary times will cut staff levels and reduce funding in areas such as staff development, building morale, motivation and team-building, recruitment and selection. In order to reduce costs they may employ casual, part-time or permanent parttime staff or encourage job sharing. Many sectors of the retail industry organise their internal labour market around the business strategy. In this case they use a core/peripheral model. This means having a small core of full-time employees and a large number of casual or part-time staff. The core staff usually consist of managers and departmental support staff who are treated as assets. The staff in the peripheral area, being casual or part-time, receive the training required to carry out their roles effectively. However, if one or more peripheral staff member is absent, he/she can easily be covered by other staff in the periphery. It is common for people working in peripheral areas of an organisation to have two or more jobs with other organisations in order to receive an adequate income which would be the equivalent received by a full-time staff member. The aim of recruitment and selection in a low cost-based organisation would revolve around acquiring skill and talent but at minimal cost. Jobs may be

The Organisation

45

segmented so it is easier to find staff who would not need intensive training and who could be easily replaced. However, where a differentiation strategy is used by an organisation the internal labour market is likely to comprise full-time staff that receive greater professional development, may work in teams and are more likely to be involved in decision making. High levels of morale and motivation would be developed across the organisation and commitment to organisational goals would be higher. The management of such organisations would know the strengths of their staff and build upon these and provide a greater range of incentives. The signal to these staff would be that they are valued and respected hence the greater level of commitment in return. Staff turnover would be lower and a strong nurturing and supportive culture would be developed over time to reinforce the appreciation of staff contribution. Communication channels would be open and clear while structures would be designed to eliminate barriers to effective performance. Career advancement would be performance-based and progression pathways developed with key staff. Differentiation-based organisations are full-time staff dominant. Figure 2.1 illustrates the different perspectives of an organisation that impact upon achieving a sustainable competitive advantage through the use of strategic recruitment and selection. The underlying leadership and management philosophy determines if staff are viewed as assets or expenses. The business strategy will shape the role that staff will play in the organisation and this will drive decisions about internal labour market strategies or how staff are organised. The orientation of the organisation may reflect a personnel or control approach or it may reflect a HRM approach which attempts to gain staff commitment to organisation goals. Finally an organisation that views its staff holistically will build the organisation around its people and create a community. Those recruiting and selecting staff need to thoroughly understand the organisation and its environment if they are to select the right staff. They need a strategic approach as they are not only securing staff to fill positions but they are seeking the staff that will lead and manage the organisation in the future. Leadership and management philosophy. Staff are assets

Staff are expenses

Business strategy is Differentiation

Least cost

Internal Labour Market structure is Full-time dominant

Core/Peripheral

Orientation Community

Figure 2.1:

Commitment

Control

Management philosophy, strategy, labour market and orientation.

46

Bernard O’Meara

Of course organisations shift directions and approaches in planned strategies and in response to external factors. Thus an organisation that views staff as expenses may change that perspective if the organisation changes its strategic purpose such as entering a new market or merges with another organisation that provides it with a skill set it did not previously have. Each of the aspects in Figure 2.1 is contingent on internal and external pressures and organisations may change their direction and purpose, hence the arrows in Diagram 1 run in both directions.

2.6.

Culture

The culture of an organisation is a difficult thing to define but it is an outcome of people coming together and interacting with a common purpose. Bate (1994) argues that when people refer to culture they are referring to the ‘human-ness’ of the organisation. He argues that a cultural perspective regards organisations as a collection of people who interact, talk, share ideas and form common belief and value systems. Culture is about the people of an organisation, not the bricks and mortar. Organisational culture helps people make sense of their role in organisations and deal with the uncertainties involved. These uncertainties are due to economic uncertainties, downsizing, rightsizing, changing structures, changing markets, changing organisational strategies, funding cuts, changing leadership and management styles and philosophies, expansion, growth and decline. Any type of change to an organisation impacts on its staff. Trice and Beyer (1993) argue that people in organisations deal with these uncertainties through discussion and by sharing opinions. This can occur at a very informal level but also through formal activities such as meetings, discussions and sharing of opinions which can be translated into decision making. These formal outcomes may then become the subject of discussion and judgement on the validity of the decision making, as not all may agree with particular outcomes. Thus where culture can support the achievement of organisational goals, alternatively it can negatively impact an organisation’s performance. The link between culture and performance has already been mentioned briefly. However, recruitment and selection can be used to strategically reinforce an organisation’s culture by appointing people with a synergistic belief or value system to that of the prevailing culture. In this way an organisation can reinforce the positive aspects of its culture and gain greater commitment to organisational goals. Hence employee involvement and participation in decision making are ways of engaging staff and fostering commitment through involvement. Alternatively, strategic recruitment and selection may be used to employ change agents who will bring with them a different perspective that may influence or change the prevailing organisation culture. In any event the preparation taking place prior to recruitment and selection involves analysis and evaluation of all aspects of the organisation, its external

The Organisation

47

environment and its future direction. If staff drive an organisation to succeed then a lack of knowledge or planning by those appointing new staff may lead to anything but a good synergy or ‘fit’ between those appointed and the organisation. In terms of systems the interaction of organisation culture, strategy and direction need to be aligned as each system interacts with, and influences, the other. This is a complex interaction; however, a matching of the short-, medium- and long-term needs of the organisation and its staff, individually and collectively (or as much as possible), can lead to a strong supportive culture. It has been observed that charismatic leadership involving leaders within an organisation who are viewed as strong and effective leaders and who quickly gain employee commitment for goals and objectives also play an important role in organisations. These leaders generally have excellent interpersonal and communication skills and it is their ‘people’ skills that allow them to gain commitment and generate enthusiasm. This is a cultural interaction where one person successfully influences other people in the organisation so that a common goal is sought. When charismatic leadership is combined with a strong supportive culture, research has found that there is a positive impact upon organisational performance. This again illustrates the role that people play in an organisation and where a longterm positive culture interacts with charismatic leadership then the outcome in terms of performance is positive. Culture and leadership are important to organisational success and need to be considered during recruitment and selection (Wilderom, van den Berg, & Wiersma, 2012). A culture of high performance occurs when staff not only do their job effectively but personally initiate ways of performing better and contributing to the organisation in new ways. Their commitment is not restricted to their job description but because they are highly motivated they strive for continual improvement. This drive would be imbedded in culture and would engage as many people as possible. An organisational system can positively impact upon organisational culture and vice versa (Robson, 2005). In order to identify external candidates for positions to the organisation, recruiters need to fully understand and appreciate the various systems in place as well as other forces such as culture. This knowledge allows recruiters to target the right candidates in order to achieve synergy between staff, the organisation, its performance and future. It is necessary to know the human interaction and culture that exist in the organisation and to analyse and evaluate these to determine if it is positive and appropriate. This can be achieved by surveys, staff meetings and informally by establishing a strong rapport with staff. If staff trust the recruiters, then they are liable to share ideas, opinions, concerns and options. The skilled recruiter can determine the positive, negative or neutral nature of culture and engage in organisational diagnostics at the same time. The outcomes are the knowledge and understanding required to effectively and successfully employ a new person within the organisation. Will the new employee reinforce culture or challenge it, in addition to undertaking the tasks associated with the job?

48

2.7.

Bernard O’Meara

Structure

An issue closely related to the culture of an organisation is its structure. As organisations grow, they tend to become more hierarchical and more structured. As roles and responsibilities change structure provides order and a greater distinction between management and non-management staff. However, structure can isolate management from the day to day activities of the organisation and critical activities such as communication can become less effective. ‘Structure is a collective noun which incorporates all those explicit and implicit decisions of members about who does what, for whom, for how long, for what rewards, for what punishments, under what conditions of work etc. The formal structure refers to those shared values and beliefs among people about the law of the organisation’ (Hunt, 1974, p. 131). Hunt’s definition of structure does not refer to the physical state of the organisation but refers to how people are organised within the organisation. It concerns the role that staff have, how they interact, their responsibilities, the dimensions of their job and where they are in the hierarchy in relation to other staff. Structures can evolve over time or they can be effectively designed to ensure positive outcomes. As culture can have a positive impact on organisational performance, structure can also enhance or inhibit performance. Organisational structures can be hierarchical or very tall, they can be flat with fewer levels of management than the hierarchical approach and they can be departmentalised, centralised or decentralised. However, structures are often developed as a response to growing internal and external pressures. As business intensifies, the role and responsibilities of staff change and structure provides an orderly response to the chaos of who does what, when and how. If the wrong structure emerges then it can inhibit a return to normalcy. Structure and culture are both concerned with the interaction between people in an organisation and they both complement each other. In their research Cosh, Fu, and Hughes (2012) found that organisations that have a decentralised decisionmaking formal structure and appropriate strategies are more likely to be innovative than any other structure. They also defined centralisation as the degree to which a chief executive officer (CEO) allows others into the decision-making process. The decentralised decision-making structure may be underpinned by a ‘staff are assets’ philosophy. Innovation comes about through people and if the culture, structure, strategy and philosophy are right then staff will commit to goals and be more innovative and creative. Structure also impacts upon the knowledge management of an organisation. Organisations with lower levels of centralisation and formalisation are more likely to be far more effective in knowledge creation, sharing and utility. Before recruiting new staff it is wise to know the environment into which they will be placed and the role they will be expected to play. To maximise human potential, it is necessary to create the right culture, strategy, structure, communication flow, leadership and growth opportunities, ideally prior to appointing new staff (Mahmoudsalehi, Moradkhannejad, & Safari, 2012).

The Organisation

49

The internal organisational system is complex as parts of it respond to different pressures and competitive forces. Rigid hierarchical structures are not necessarily effective in highly competitive environments as they cannot respond quickly to client needs or offset competitor strategies once engaged. The more competitive the environment in which an organisation operates the more flexible it needs to be. The flexible organisation retains a hierarchical part for senior management where strategy is determined, funds allocated and clients sourced. However, the operational component of the organisation needs to be flexible, staff will more likely be empowered to make decisions and work in teams so that the teams respond to changing client needs as necessary. It is the external environment that can impose the necessity for appropriate cultures, structures, strategies, formality, work autonomy and empowerment.

2.8.

The Environment

The external environment of the organisation is important. Inter alia, it consists of its clients, suppliers, staff as well local, national, international and global competitors. The relationship between the organisation and its environment is complex and best understood via an open-ended systems approach. The environment also includes the local community where the organisation is geographically located and this community creates a perception about the organisation. Organisations compete for market share, clients, suppliers and of course, people. Each organisation creates its own identity through interaction or engagement with its community. This identity determines if individuals or groups of people are attracted to the organisation and want to work for it or purchase its goods or services. When people in the community want to work for an organisation because they like the characteristics of the organisation they will be more loyal and establish a strong psychological contract with the organisation (van Tonder, 2011). The organisation’s external environment includes many different forces and groups that impact upon the organisation and upon which the organisation exerts influence. The external environment is a system with multiple sub-systems and these interact with the organisation system and its sub-systems. All organisations will have contact with local or national governments and their agencies. Governments work through legislatures, which determine work conditions, minimum wages, the range of benefits offered to staff and the role of unions and bargaining. In addition, governments also enact and enforce legislation regarding health and safety, education and training and oversee the economy. While organisations and their staff pay tax to support the economy, governments are mindful that without organisations they would not be able to levy tax from the organisation, its staff or their dependants. If an organisation closes down, it can have a significant financial impact upon its suppliers and customers, both of which employ staff and pay tax.

50

Bernard O’Meara

The income from tax allows governments to invest in infrastructure and services such as road and rail services, health services, pensions, unemployment benefits and other societal requirements. Thus organisations feed into this system and to some extent drive it. There is an interdependent system at work. Employment benefits the community and helps it grow and improve its members’ standards of living. It funds improvements such as parks, libraries, recreational and sporting facilities. In Australia the creation of a national broadband network and the carbon tax illustrate how organisations feed into government programs and are, in turn, impacted by them. It is not surprising that large organisations need to know what policies and legislation will be enacted by governments to determine the impact it will have upon their businesses. Governments will often consult with organisations prior to enacting legislation that will impact them. However, large organisations will lobby governments and consider the direction the government is taking and factor this into their strategic planning where appropriate. As organisations use tools such as technology to gain a sustainable competitive advantage the more progressive governments are moving towards becoming e-governments. E-government is more than having web-based forms and services available to clients. It involves reshaping the role of government and how it provides its services and shares information. It also means deeper community engagement and interaction so that e-governments become more proactive in the community and less reactive. The emergence of e-governments may have a striking impact upon government and organisation staff interaction. In this case e-governments have the opportunity to be focused on user needs and therefore be ‘customer’ driven. A new relationship between governments, organisations and staff in their communities could offer greater input into government planning and new opportunities for organisations and their staff to make use of (Davison, Wagner, & Ma, 2005).

2.9.

The Organisation & Environment Interface and Links

Many parts of organisations deal directly with the external environment and its community. Marketing and sales staff would deal with customers, procurement officers would deal with suppliers while HRM staff would deal with unions, employer associations and government agencies. In many instances recruitment and selection is undertaken by personnel or HR officers, but in fact many organisations do not have such staff and recruitment and selection is undertaken by a manager or supervisor. Even where personnel and HR officers are employed, they may act as consultants to management and supervisors and take on a functional, not an operational role. Those undertaking recruitment and selection are part of a boundary-spanning role that straddles both the organisation and its environment. These roles are at the interface of the organisation and external environment systems. These people need

The Organisation

51

to know all aspects of the organisation or the internal environment into which they will appoint new staff. They also need to understand the environment from which these people are drawn. From a systems perspective, when a person is employed by an organisation, an exchange takes place as the person moves from one system to another. Clearly the person remains part of the greater community but now has a new role in an organisation. In order to facilitate a smooth transition and achieve a close fit between the person and the organisation those appointing new staff need to know as much as they can about the person and the environment from which they came.

2.10.

Maintaining or Enhancing the Reputation and Image of the Organisation

The corporate image or identity of an organisation is a means by which organisations market themselves or wish the community to view them. Organisations create a public image and by doing so they indicate how they wish to interact with the community and how they wish to be perceived. Organisations that are not viewed positively by the community may go to some lengths to change that view even to the extent of creating a ‘front’ organisation. These front organisations are created to undertake activities at a societal level which the originating organisation cannot undertake because of its negative image. Examples may be found in the tobacco industry, oil and gas industry, logging sector and other areas (Leitch & Devenport, 2011). If an organisation has a good public image then it is likely that more people will want to work for it. This can manifest itself by people seeking employment dropping their resume into specific organisations in the hope there is a suitable vacancy. Service Canada is an initiative of the Canadian government where both employers and job seekers can upload information and connect anywhere across the country (Service Canada, 2012). Many organisations find that community engagement is a means of being perceived as a strong community partner. Organisations such as TATA®, 3M® and IBM® and others feature their community engagement activities on their respective websites to illustrate their commitment to, and support of, their communities. This type of organisation branding or marketing can create a powerful psychological link between job seekers and organisations. An organisation such as British Petroleum (BP) which had its public image tarnished by the oil leak in the Gulf of Mexico in 2010 commenced to change community perception firstly by removing its chief executive. The BP website has reports and videos showing how it is working with the US governments and communities to repair the damage to the Gulf, meet its financial to compensate those affected by the oil leak and to win back community trust. ‘It is clear that what we do matters to people, and that open communication is valued and expected’ (Dudley, 2011, p. 1).

52

Bernard O’Meara

BP is now trying to recapture its previous image. By sending the group chief executive to various countries and parts of the United States damaged by the oil leak, the signal to communities is that BP is serious about its commitment to its staff, its worldwide communities and the environment. The damage done to the image of BP is significant and will take time and effort to change community perceptions. In terms of recruitment and selection, is the damage control undertaken by BP sufficient to offset the damage done to its reputation and make it attractive to job seekers?

2.11.

Social Responsibility and Ethics

The image of an organisation is important as it impacts heavily how it is viewed by the community. Organisations are judged by what they do and image, social responsibility and ethics can impact the size of the pool of applicants drawn when a position is advertised. Organisations have a wide range of responsibilities to different stakeholders and one of these is social responsibility. Carroll (1979) argued that there were four components of social responsibility: discretionary responsibilities, ethical responsibilities, legal responsibilities and economic responsibilities. In terms of economic responsibility, organisations have a responsibility to create goods and services that earn the organisation a profit. The legal responsibilities refer to the compliance of organisations to law and regulation. The ethical responsibility refers to societal expectations that organisations will do more than just meet their legislative responsibilities. They will actively and voluntarily engage their community. The fourth component, discretionary responsibilities, refers to the judgment and decision making of an organisation’s leadership on how they will aid society. This is a personal choice and a philosophical one. In China, it is reported that a number of manufacturing organisations have lost international orders. This is because they have failed to meet environmental, human rights and safety standards. In this instance, the inability to meet societal expectations has had a negative effect on the Chinese manufacturing industries (Miao, Cai, & Xu, 2012). Commentary on the Russian economy suggests that organisations need to take a greater role resolving social issues in that country. It suggests that a decline in competitiveness and economic conditions and increased social issues will arise from the inability of private-sector organisations to be competitive and work in hand with government and public-sector organisations (Soboleva, 2006). Social responsibility and ethical behaviour are expected by global communities. These impact the organisational identity and the image of the organisation. A lack of social responsibility can even impact upon the performance of the organisation and how attractive it is to job seekers. Tokenism is no longer acceptable. Arevalo and Aravind (2011) argue that social responsibility and ethical behaviour require an inclusive strategy that embeds the principles in organisation culture so

The Organisation

53

they are embraced by the entire organisation staff. While the framework is in place in organisations in India to strengthen social responsibility and ethics the necessary resources and funding are insufficient to support this transition fully. Countries across the globe are now demanding that organisations share responsibilities for social issues as organisations are the central unit for economic growth and stability. A lack of social responsibility can be published across many different forms of media and inappropriate corporate behaviour highlighted accordingly. A strong history of community engagement, social responsibility and ethical behaviour impact negatively or positively upon members of the community. This may determine if job seekers opt not to apply for positions with some organisations while actively seeking employment with other organisations. Those organisations with higher levels of job seekers are viewed as preferred employers by the community.

2.12.

Preferred Employers

Organisations that are considered preferred employers are publicly recognised as being better in their various efforts compared to other organisations. The International Organization for Standardization (ISO) has a number of standards by which organisations can be certified. These include: • • • • • •

ISO 10018 Importance of people in quality management ISO 31000 Risk management ISO 9000 Quality management ISO 26000 Social responsibility ISO 14000 Environmental management ISO 50001 Energy management

In addition to ISO certification, countries have their own means of identifying organisations of excellence such as the Corporate Responsibility Index in the United Kingdom. These registers can also encourage investors to become stakeholders in these organisations as they can be viewed as industry benchmarks that other organisations attempt to emulate. Globally, organisations such as Universum Global, Firstnaukri, Aon and professional business associations and media publish a list of the Best Employers or Preferred Employers annually. The identifiable characteristics of preferred employers can be quite vague or quite specific and the size of surveyed organisations and staff can also vary. However, if the community is informed by the media that an organisation in their region has been singled out as a preferred employer, then favourable attention will be given to that organisation. Aon Hewitt announced its list of 2012 Best Employers across Australia and New Zealand. The list was constructed from a survey of 74,000 employees across

54

Bernard O’Meara

165 organisations and 102 organisations participating in the Aon Hewitt accreditation program. To qualify organisations must: • • • •

Develop a highly engaged and productive workforce Create conditions for people to excel and contribute discretionary effort Have unwavering commitment from senior management for these principles Provide clear performance expectations and align people with organisational goals • Reward and recognise voluntary contribution by staff • Provide clear communication especially for what staff can expect and that helps make the organisation more competitive and attractive to potential staff in the broader community Aon Hewitt also state that their Best Employers gain 9% more profit per employee and double the revenue growth of other organisations. The link between staff engagement and productivity and desired outcome is highlighted as a means of encouraging other organisations to strategically engage their staff (Aon Hewitt, 2012). Organisations seeking preferred employer status need to demonstrate to their community that they are doing much more than just employing staff. Communities have clear and articulated views on environmental and sustainability issues, health and safety, social responsibility and ethical behaviour. The global community can now highlight organisations not meeting these standards and this can reduce the pool of applicants wanting to work for these organisations. Both society and organisations can be thought of as interacting systems. Both have expectations that may impact upon the other. Economic decline negatively impacts the organisations, their profitability and their capacity to employ or the need to reduce staff. The correlation between unemployment and increased suicide rates of both males and females has been established (Snipes, Cunha, & Hemley, 2011). It highlights the interdependence of organisations and society, and with the growing realisation of this dualism society expects much higher standards from organisations than ever before. Preferred employer status is a means for organisations to demonstrate they understand this relationship and accept the accompanying responsibility.

2.13.

Demographics

An organisation can analyse its environment via demographics. Demographics provides detailed information about the community, its environment and the people who live in it. Governments often conduct a census of a state or nation and make the results available to town planners, local governments and the business community.

The Organisation

55

At a global level the Organisation for Economic Co-operation and Development (OECD), the United Nations and the World Bank gather data about countries and the main trends in them and aid in identifying countries or parts of countries that need investment in areas such as education, infrastructure and health. Demographics refer to the characteristics of people and can include the following information: • • • • • • • • • • • •

Age Employment status Gender Geographical location of employment Highest level of education Income Industry employed in Modes of transport Marital/partnership status Number of dependants Population growth Unemployment level

Town planners and local government bodies check the above demographics against services needed to be provided to meet increasing demands. These could include cre`ches, primary schools, secondary colleges, higher education colleges, hospitals, aged care facilities and public transport. If the majority of respondents said they travelled by public transport then planners could target public transport as a priority to be upgraded. A demographic analysis of the Greek labour force in 1999 highlighted the decline of population growth and occupations in decline across the regions of Greece. The analysis showed a decline in future labour supply and the international competition as a member of the European Union (EU). It forecasts low job creation capacity, job cuts to the public sector and impacts inflation and the national budget deficit (Glytsos, 1999). Of course, this was before the Global Financial Crisis and the financial crisis in the EU, which has led to extreme austerity and deep cuts to public sector finances from 2010 onwards. A demographic analysis can be a powerful tool in understanding the environment. This is particularly the case where countries, states and organisations need to plan for the future. Most facets of demographics are available from the governments that undertake the research. This material can then be used to plan and develop, be aware of current trends and what resources will need to be allocated. Organisations also use demographics to better understand the environment in which they operate. In some cases a demographic analysis may show an organisation that it needs to relocate to new areas or even a different country where there is a growth in population, adequate levels of education and good infrastructure.

56

Bernard O’Meara

In Ballarat, Australia, IBM® and the University of Ballarat built an IT Services Centre at the University of Ballarat Technology Park where several hundred people are employed. This relationship allows students of IT and other courses at the University of Ballarat to gain employment with IBM®. There is a steady flow of students to fill call centre and other positions so there is no need to advertise externally when an entry level position becomes available (IBM®, 2012). Those recruiting new staff should have a strong grasp of the community and its demographics. These help organisations to link in with education providers, understand population growth patterns, income patterns may help to determine wage and salary policies while the level of unemployment may allow an organisation to fill positions quickly. A demographic analysis will give an indication to the recruiters if the right people with the right qualifications are in the immediate community. This will aid in targeting the appropriate audience and in communicating that a vacancy exists. The analysis will also give an organisation an insight into staff turnover patterns of people within a community while average income data may provide an idea of wage and salary expectations. The analysis can indicate if suppliers and customers are located locally and the services available in a community. An analysis of the local businesses will indicate if competitors are nearby and even identify organisations in decline. Organisations in rapid decline may encourage other growing or stable organisations to consider their staff for employment in the future. People-oriented organisations in decline may help their staff find new employment opportunities to protect their income and minimise the impact on the community. Knowing the community means knowing what is important to the community.

2.14.

VRIO, Skill and Knowledge Analyses and Gaps

The staff of an organisation are a long-term investment, an asset base. They use resources and their own levels of commitment to achieve strategic goals. However, staff will leave the organisation at some stage and be replaced by new staff. The process of staff turnover impacts the organisation’s culture, its identity and its performance. It is important to know how staff add value to an organisation, how to develop them and to determine if there are any skill or knowledge gaps. Competency analysis can be undertaken to determine if staff have the necessary competencies to undertake their job. This requires analysing the job itself to determine the knowledge, competencies and experience required to successfully undertake the job. At the same time the job holder’s competencies can be reviewed to determine if the person is adequately qualified to undertake the job or if there are competency gaps that can be closed via training and education. The other alternative is that a person may be overqualified and not stimulated by the job.

The Organisation

57

This type of analysis leads to a competency profiling that illustrates the strengths of the organisation, where staff can be trained and where gaps need to be covered through the recruitment and selection of new staff. This is a part of organisation diagnostics. The competency profile illustrates the current staff strengths and the development that these staff will need to meet future challenges. The analysis is driven by the strategic direction of the organisation and the objectives it wishes to achieve. Staff add value to the organisation by what they can do or by the knowledge they have, the contacts they have or by their potential to add value in the future. A gap in competencies or knowledge may become evident if quality standards are not met, timelines not adhered to or if morale declines. These signals can be detected and interpreted by management, but in the right culture, staff themselves may highlight their inability to meet targets and standards and request training or education. Leadership and management questionnaires can be distributed to gain a 360˚ perspective and this can feed into development programs and specifically designed experiential learning programs. All areas of an organisation can be reviewed to determine gaps, map strengths and to identify growth opportunities for staff within the organisation and the talent pool needed to be generated by external recruitment and selection. Where these gaps are identified but cannot be resolved by training or education, recruitment and selection can be used to appoint new staff with the competencies, experience and knowledge required by the organisation. However, filling such gaps is only a part of the role of recruitment and selection. Consideration needs to be given to the culture of the organisation, its structure and strategic needs as the context for appointing new staff. Issues arise when the total context of the organisation is not considered. An organisation that uses control as its orientation may need to rethink employing a person from a community-based orientation. People used to extremely thorough and detailed job descriptions may not be comfortable with a job description designed to give the holder maximum autonomy, which is therefore less detailed and more general. Appointing the right staff also requires bringing them into the right environment if they are to be retained. Those given responsibility to appoint new staff and commit organisational resources accordingly need to know the people and all aspects of the organisation. Employing the right staff can reinforce the organisation’s identity and make it more appealing to those seeking a new job. A gap analysis and competency profiling may identify areas of deficiency within the organisation but it may not be able to identify the critical core staff of the organisation. This requires much deeper consideration. The people who add most to the value of an organisation may not necessarily be those in senior management or leadership roles. These people may influence strategy development and operations through their knowledge of the organisation, its industry and its competitors. Barney and Hesterly (2006) proposed the Value, Rarity, Imitability and Organisation (VRIO) analysis as a means of analysing the usefulness of an asset or part of a business. However, it can also be used to identify the critical staff

58

Bernard O’Meara

within an organisation and to strategically leverage their talent. Key staff like key parts of a business can be identified, developed and given the best opportunity for success through learning and gaining experience. When one of the key staff leaves an organisation, a dedicated strategy is usually developed to replace the person and match the value-added capacity of the previous incumbent. The VRIO analysis should be undertaken regularly to identify those critical to the organisation and those who may need to be replaced due to retirement and illness. Retention strategies can then be put in place to ensure other key staff do not leave the organisation. Competitors will know the key people in other organisations and, having recognised them, may attempt to recruit them as their talent and contribution is recognised. The VRIO analysis can be used to answer the following questions: Value Who adds the most value to the organisation or parts of the organisation? This can be in the form of a ranking of staff in each area of the organisation or across the whole organisation to identify key staff. This can be constructed following discussion and consensus between managers. Independent indicators such as metrics (client satisfaction, level of quality…) can be used to aid in this process. How do these people add value to the organisation? Does it take the form of knowledge, competency, leadership and/or understanding strategic development and implementation? Does the value-added process take the form of contacts or networks, timeliness and commitment to quality and other relevant high standards? Is their level of expertise or are their other characteristics important? What makes these people so special that they have such a major impact? Does the organisation recognise the value of these people? Rarity How rare and unique are the qualities of these people? If they are rare and unique and make a major contribution to the organisation what happens if the person leaves? If a person has a rare and unique way of adding value to the organisation, is the person passing on these talents to others or mentoring other staff? If the person is nearing his/her retirement age, has the organisation been innovative by offering a stepped retirement? This is where a person gradually reduces their work from a full-time job to successively reduced workloads such as working four days a week, then three days a week as outlined in the National Health System (NHS) voluntary step down process in the United Kingdom. How can the organisation retain these unique and rare capacities in the future?

The Organisation

59

Imitability Can the unique and rare capacity of critical staff be replicated by other staff? Can the organisation train or educate other staff to the point where they acquire the same unique and rare capabilities? The systems-based strategic organisation will identify such staff through recruitment and selection and developmental programs will be adopted to enhance these characteristics. If other staff cannot be trained or educated to this degree then the organisation must move to protect the individual(s) from being headhunted while keeping them motivated by remuneration, job autonomy and flexibility. The organisation may decide to include this person in a diverse team so that the qualities can be reproduced by the team as a whole and not by a single individual. Organisation Is the organisation making the best use of its staff with rare and unique capabilities? While the Global Financial Crisis has slowed staff turnover recently, staff still leave organisations because they do not feel valued or they feel underutilised. If their organisation does not make full use of talented individuals and recognise them, then other organisations may offer better incentives and opportunities to meet their needs. As discussed earlier, staff seek recognition along with a range of non-financial benefits thus increased remuneration may not always be attractive. If talented people are discovered in an organisation but are not recognised as being critical and not fully utilised, then appropriate retention and motivation strategies should be put in place. These can include giving the person a title that better reflects their contributions, greater emphasis on personal and professional development, career advancement opportunities or greater involvement and participation. If the organisation finds one person whose potential is not being fully developed then chances are there will be other people in similar circumstances. Organisational diagnostics would suggest that if new staff are appointed with unique and rare capabilities to the organisation, then they may be overlooked as well. In such a case culture, morale and motivation as well as other metrics would highlight a problem to be addressed. The feedback loops on the organisation’s system would also highlight a problem that needed to be resolved prior to further staff being appointed. The resource maximisation model is built on the premise that the right staff can be secured, retained, motivated, committed and given the necessary resources such as technology. The model attempts to ensure that all parts of the organisation are as effective as possible and enhancing the capabilities of staff.

60

Bernard O’Meara

This is a dynamic system which constantly matches internal strengths of the organisation with external or competitive threats. There is a dual focus but the organisation has greater influence over its internal resources than over external factors. If it can maximise its internal resources then it has a better chance to meet external threats and challenges. It will not be competitive if it responds to external pressures once they occur. The knowledge of both the external and internal strengths and weaknesses is needed (Agarwal, Grassi, & Pahl, 2012). The use of the adapted VRIO analysis of staff is a strategic tool that organisations can use to identify their critical staff and develop strategies to protect them from predator organisations. The VRIO analysis can also be used to identify knowledge and talent that can be embedded into the organisation through culture. In this way knowledge, expertise and unique and rare capabilities can be spread across organisations so that other staff understand the importance of these talents and support them. The role of the VRIO analysis in terms of identifying critical organisation talent is similar to the role it plays in strategic management. It prioritises the unique and rare capabilities of individuals and groups in order to develop appropriate dynamic strategies to aid the organisation achieve its goals. It is a valuable strategic tool (see Appendix B).

2.15.

Succession

Once key individuals of an organisation are identified, career maps can be developed. Career maps are customised for individuals and expose staff to learning opportunities and a greater range of responsibilities over time. Initially organisations construct career maps to develop staff across a range of areas and monitor their personal and professional growth. Career maps are similar to graduate programs that allow newly appointed graduates to experience a variety of roles in different departments. Organisations can monitor staff development and work with them to determine a more focused career direction once career preferences are determined. The map will outline experiences that will help develop staff as well as timelines and roles to be undertaken. When new staff, particularly young staff, join an organisation, they may have limited work experience and may not know what career path they wish to pursue. Career maps help new staff to work through the career options available to them and allow organisations to identify staff strengths and determine where they could be best utilised. Once core staff and their strengths are identified and career direction is established, organisations continue to plan for the future by working with staff to continue their development. At this point core staff may be included in more advanced career maps or succession plans.

The Organisation

61

Succession plans can be constructed for entire organisations and their departments, sections and levels. The degree of complexity of the succession plan will vary from organisation to organisation. It contains information about roles, the holder of the position and those who could quickly succeed the job holder in an emergency or in the longer term when the job holders retires, leaves the organisation or moves to another position. This is a strategic tool for the organisation. These are normally held in information systems so that career maps, training and education data and the career direction the person wants to take and other relevant data can feed directly into the succession plan. Succession plans consolidate information and plans that affect the career advancement of staff. The material contained in succession plans includes: • • • • • • • • • •

Position title Future direction or changes to the role Name of incumbent Incumbent’s career options Qualities needed to be successful in the role Multiple successor names Optional roles for successors Training, education and experience required by possible successors Ability of successors to succeed to the role immediately or in years to come If no internal successors replacement staff need to be appointed through external strategic recruitment and selection

Clutterbuck (2005) argues that organisations need to have a pool of successors for significant roles. These people need to be developed and motivated so that they can succeed to vacant positions as required. In contemporary organisations staff may want to be considered for several positions and therefore may need to develop a wider range of skills, experience and knowledge that would allow them to any of these positions. Succession plans need to be reviewed frequently and updated as required. Other forms of analysis such as VRIO, competency profiling, knowledge gaps, staff training, education and development, SWOT and career maps can all be used to construct appropriate succession plans. These complement the strategic direction of the organisation and succession helps align the short-, medium- and long-term needs of both key staff and the organisation. There are several advantages of succession planning and engaging staff. As critical staff are involved in their future and career succession, they know they are valued by the organisation. This may improve the commitment, loyalty and performance of staff and by allowing specifically designed learning experiences and giving them multiple future options they are not ‘locked in’ to one path. This reinforces a positive culture. The use of internal or external mentors and coaches can be a useful means of developing staff in concert with other developmental activities. Mentors and coaches are experienced people that the organisation looks to in order to oversee the career development of rising talent.

62

Bernard O’Meara

They may be current or former senior staff or drawn from the broader business community so they know what is required for staff in more senior roles or in quite specific roles such as engineering management. However, succession planning may include identifying potential talent external to the organisation. This is a proactive means of developing talent with the intention of that person(s) joining the organisation in the future when the organisation needs that talent. Succession can be a means of retaining talent and knowledge and help others to gain this talent or knowledge. Succession can feed into the recruitment and selection strategy designed to appoint people with the talent necessary. Knowledge attrition can negatively impact upon the organisation’s performance when it allows key staff, value adding staff with rare or unique talent or knowledge to leave the organisation. It is the strategic responsibility of management to retain talent or create processes that allow this to happen (Durst & Wilhelm, 2012). In some cases management have realised that core staff with critical knowledge have left the organisation and attempt to reconnect with the previous employer through contact, social activities and by offering them the opportunity to act as consultants or consider taking on casual or part time work. Alumni associations can be created to address the need to create a network of former employees as a means of continuing to access knowledge, expertise and networks (Clonts, 2012). If it is known that an incoming staff member will take 5 or 10 years to develop to a stage where the person can take on a senior role, then strategically the person needs to be developed over that period of time. The organisation also needs to allow for strategic staff development and knowledge retention in its budget so that any necessary expenditure is allowed for (Hewitt, 2009). Investing in staff and their future and knowledge is a strategic means of protecting the organisation’s future. Undertaking the VRIO analysis helps identify key staff so that retention and developmental strategies can be created to motive them and recognise their important contribution. Ten thousand business leaders, in a survey, rated themselves low in areas of trustworthiness, empathy, external attunement and depth. A survey of their staff showed that they wanted their leaders to be empathetic and trustworthy. Seventeen percent of respondents received no coaching and 43% wanted more coaching than they actually received. One thousand professionals were asked what criterion they would use to select their next job and 29% reported they wanted ‘interesting work’ while 18% wanted meaningful work and a good balance between work and life. Forty percent believed their next career move would be outside the organisation (Hills, 2009). It would appear that leaders and managers of organisations are more focused on things other than their staff. When organisations allocate people, time and resources to recruitment and selection they also need to allocate adequate funding to retain them. Recruitment and selection specialists (Talent Acquisition Managers) would check career maps and succession plans prior to seeking new staff. However, if an organisational diagnostic approach found that staff were not being retained then they would address and resolve the issues causing staff turnover before recruiting new staff (see Appendix C).

The Organisation

2.16.

63

The Interviewer(s)

The interview is a two-way process that aids each participant to gain and share relevant knowledge and information. This is usually a face-to-face opportunity for each party to decide if they wish to continue the dialogue or withdraw from the process. The interview will be discussed in more detail in another chapter. The interviewer(s) need to have knowledge of the organisation, a range of tools to help decide if a person should be appointed and the capacity to ensure the interview is successful. Interviewers need to be prepared. Interviewers should be selected based on their knowledge of the organisation, objectivity and perception. Interviewers should discuss recruitment and selection prior to appointment with management so they know the future of the role and the incumbent to be appointed. The organisation may seek future managers and leaders when filling some positions whilst other positions may be filled with people who do not seek career advancement. However, if effective decisions are to be made they need to be based on knowledge of the type of person required to fill a specific position. Interviewers need to be able to align the short-, medium- and long-term needs of both the organisation and the individual. The interviewers will affect the future of the organisation.

2.17.

Summary

Organisations are complex in nature and they are crucial to economic and social growth and stability. While organisations are created for purposes decided by their stakeholders, they are operated and developed by their staff. As organisations grow in size, they also tend to become much more formalised in order to achieve order and outcome. Formalisation refers to the agreed roles and levels of authority and responsibility that staff have in an organisation. Leaders and managers play important roles in organisations. They not only fulfil specific duties but they also use their own values and belief systems in their work and these can impact upon all other staff. The structure of an organisation illustrates the roles that people have, reporting relationships and differentiates between the different clusters of staff. Structure can inhibit or promote communication, collaboration and achievement. Thus, when appointing new staff consideration needs to be given to the impact of structure on their capacity to achieve. Another aspect that warrants consideration is culture. Culture refers to the ‘human-ness’ of an organisation and like structure; it can inhibit or promote staff contribution. Organisations can have one dominant culture and several subcultures at the same time and the impact of new staff on culture and vice versa needs consideration. Organisations develop images or identities in their communities and this can lead them being considered socially and ethically responsible members of the community and preferred employers. Preferred employers are those employers that most people

64

Bernard O’Meara

want to work for. A sound reputation can make recruitment and selection easier as the organisation attracts the best applicants. Once the right staff are employed organisations use a variety of analyses such as the VRIO analysis to identify core staff, motivate and retain them. The use of succession plans and career maps allow for future contingencies and signal to staff that they are important. If the right staff do not leave an organisation there is no need to replace them.

2.18. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Review Questions

How can the VRIO analysis impact the organisation’s performance? How does the strategy of an organisation affect recruitment and selection? What is a preferred employer? Why are demographics important to organisations? How does organisation identity impact the recruitment and selection process? Why do recruiters need to understand the culture of the organisation? How can structure inhibit organisation’s performance? Describe the interaction of an organisation with its environment. What are community expectations of organisations? Why is the role of the interviewers so important?

2.19.

Learning Activities

The following learning activities may require discussion with employers of those reading this handbook while some others require interaction with an organisation and may require ethics or other forms of permission. Before undertaking such activities please check with your employer or academic first. 1. Choose an organisation and identify its interaction with the community. Describe how this interaction impacts the strategic recruitment and selection. Can the organisation be classed as a preferred employer? 2. Choose a medium to large organisation. Analyse the structure and culture of the organisation and how effective you believe are. How does the organisation match its short-, medium- and long-term needs with those of the community? 3. Undertake a survey of five or more organisation. How many use a VRIO analysis? Do they use succession planning? How does their labour turnover rate compare to that of its industry? Analyse and evaluate these.

Chapter 3

Recruitment and Selection Preparation Stanley Petzall

Chapter Learning Objectives After reading this chapter and undertaking the review questions you will: • Be able to construct jobs and roles within an organization that allow an organisation to achieve its strategic imperatives • Undertake effective job analysis and form selection criteria (required performance competencies) • Be able to contrast the benefits and disadvantages of internal and external recruitment to achieve the best strategic fit for the organisation and applicants • Be able to determine the initial most effective means to communicate a vacancy to the appropriate targeted market • Understand the necessary preparation that is required to achieve a strategic match between the applicant and organisation • To determine appropriate decision-making strategies and the use of external aids such as consultants

3.1.

Job Analysis

Job analysis is a basic HR activity which involves examination of job content, job requirements and the context in which the job is performed. Job analysis constitutes the main source of information about positions within organisations which need to be filled and the characteristics of those needed to fill them. It involves a systematic process of identifying the tasks which make up jobs, the responsibilities involved, and the knowledge, skills and abilities required to adequately perform the tasks and duties. It should also specify outcomes expected from the job. In larger organisations, there may be specialist job analysts within the HR department who perform job analysis. In smaller organizations, job analysis is usually conducted by the HR manager or line supervisor.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

66

Stanley Petzall

Job analysis is fundamental in relation to a number of HR functions, including recruitment and selection, remuneration, performance management, training and development, job evaluation and occupational health and safety. Job analysis is also important in respect of complying with the requirements of anti-discrimination legislation and to ensure that equal opportunity guidelines are followed in recruitment and selection. From a legal perspective, job analysis is also useful in determining whether an individual should be classified as an employee or an independent contractor. This is important because independent contractors do not enjoy statutory rights of employees in respect of termination benefits and annual or long service leave (Stone, 2008). Job analysis typically leads into the production of job descriptions and job or person specifications. It also provides the foundation for the important process of job design. A job description is simply a written description of a job which outlines the duties to be performed, the responsibilities of the position and the conditions under which the job is to be done. Job descriptions focus on the job, not the personal qualities of the individuals who fill the job. An interesting recent development is that job descriptions may become virtual contracts of employment in Australia and elsewhere for new job holders. This is because the job description becomes the basis for performance review (Compton, Morrissey, & Nankervis, 2009). The job or person specification, on the other hand, places the focus on the qualifications, experience, skills, abilities, knowledge and personal qualities required for suitable job holders. The emphasis here is on the individual who fills the job rather than the position. A recent development in job analysis is role analysis. This concept was put forward by two McKinsey professionals, Lowell Bryan and Claudia Joyce, in their book Mobilizing Minds (2007). The basic argument advanced by Lowell and Joyce is that most organisations are not designed on a systems basis, but that there are too many structures piled on top of each other through ad hoc reorganisations, involving ill-thought out matrix structures, divisions divided up, parcelled up and the redivided again. Partial running repairs are carried out leaving a fundamentally outdated structure in place, leading to blurred accountabilities confusion among employees and diminished performance. One solution they propose is that organisations should be designed more around roles than jobs. The basic idea is that each job impacts other jobs, and that performance assessments should be based on roles rather than jobs. If this is the case, then role analysis should supercede job analysis. Traditional job descriptions do not cover the issue of overlapping roles. For example, a restaurant manager and a chef’s jobs do involve overlapping roles as each is responsible to some degree for sales, attraction of customers to the restaurant, customer service and satisfaction and cost control. So role analysis would identify the overlaps and attempt to assign weightages in terms of primary responsibilities to each of these individuals. Obviously this approach would make job analysis more complicated. However, on the other hand, it would better reflect reality and could be taken into account in

Recruitment and Selection Preparation

67

hiring new employees, as well as performance appraisal, hopefully resulting in an improvement in performance. Job design is concerned with the way work is arranged, tasks are allocated among workers and methods are determined for how the jobs are to be done. There is strong research evidence suggesting that well-designed jobs can lead not only to greater organisational productivity and efficiency, but also to greater job satisfaction for workers (Petzall, Selvarajah, & Willis, 1996). It is well worthwhile for HR managers to devote considerable time and resources to job design, as it is estimated that the cost of labour turnover to Australian employers is over $20 billion annually (Wood et al., 2010, p. 159) and even higher in other countries. As a result of technological and other changes, existing jobs may also have to be redesigned to ensure they satisfy the criteria mentioned above.

3.2.

Job Descriptions

Job descriptions may contain a variety of different information about a job. There is no standard format, but the following may be included: • • • • • • • • • • • •

Job identification (title) Job objective Duties and responsibilities Relationships of the job to others both inside and outside the organisation Knowledge, skills and qualifications (though these may be specified in the person specification) Problem-solving abilities required: authority, indicating reporting relationships and limits on decision making; accountability, which stipulates the extent to which the holder is answerable in terms of the use of financial resources Special circumstances, for example, whether there is anything special, unusual or hazardous about the position and the environment in which it is located Performance standards required Whether trade union membership is a prerequisite to hold the position Other requirements, for example, whether the holder needs a licence to practise such as doctors or electricians (Stone, 2008, pp. 158 161)

Practitioners may also find it useful in preparing job descriptions to draw upon the Australian Standard Classification of Occupations (ASCO) published by the Bureau of Statistics. This provides a skills-based classification of over 1000 categories (Compton et al., 2009). The job or person specification is derived from the job description. As stated above, it details the qualifications, skills, ability, knowledge and background experience and personal qualities required to perform the job successfully. The person specification is suitable for the dynamic nature of jobs as it may help focus attention on

68

Stanley Petzall

cognitive, affective and behavioural qualities needed to adapt to future requirements of the job and may therefore constitute a wise risk-management strategy (Haertel & Fujimoto, 2010). Job specifications should lay down the essential requirements to perform the job, but may also stipulate additional desirable requirements. However, care should be taken to ensure that all job requirements are job-related and not discriminatory in nature. Also, employers who demand excessively high qualifications for a job may unnecessarily restrict the pool of suitable applicants or create motivational problems for over-qualified applicants. In the case of some occupations, such as customer service, sales and managerial positions, personality traits, interests and interpersonal skills may be seen as being equally important or more important than formal qualifications (Compton et al., 2009). It is important that both job descriptions and person specifications are precisely and accurately stated, particularly to ensure that the right applicants are attracted to and placed in the position, as well as giving management the freedom to change duties and responsibilities of jobs as the environment changes, particularly where the workplace is unionised. Job descriptions and specifications may also find their way into industrial awards and, if poorly drafted, may become the subject matter of industrial disputes (Stone, 2008).

3.3.

Critique of Job Descriptions

Despite widespread use of job descriptions, they have attracted numerous criticisms. In essence, the main criticism is that the job description is static and ignores the dynamics of the job in a fast-changing world. This applies particularly to jobs involving problem-solving and managerial work. Japanese organisations, for instance, avoid specialisation and offer generalised training programs to encourage flexibility among staff. They view job descriptions as nothing more than a general guide, encouraging workers to cross boundaries. They also emphasise teamwork with workers being flexible and able to perform different functions. Thus, job descriptions risk being out of date and unsuitable for strategic recruitment and selection if not regularly updated. At best, it has been said, job descriptions are frozen in a moment of time. Some authors have also viewed them as appropriate only for bureaucratic organisations in stable environments (which are in the small minority at the present time). Job descriptions are also seen as being out of date because traditional jobs, with set tasks, are disappearing. Much work is becoming more project-based, meaning employees need to be flexible as they move from one project to another. It may therefore be disadvantageous for employees to be tied to a job title and job description (Stone, 2008). All this has led some authors to argue that the job description is archaic. Haertel and Fujimoto (2010) argue in favour of this view and express the opinion that job

Recruitment and Selection Preparation

69

descriptions should be completely discarded in favour of the more dynamic person specification and descriptions of the job context. Organisations which seek to practise genuinely strategic recruitment and selection might favour this view. Stone (2008), on the other hand, argues that job descriptions still have their place to satisfy legal and EEO requirements, industrial relations realities, management needs and organisational inertia. However, he cautions HR managers to be mindful of the need to take into account factors such as competition, technical innovation, and increasing use of teams in writing job descriptions.

3.4.

Job Analysis Techniques

There are a number of common job analysis techniques and data collection methods, which are as follows: Observation — The job analyst observes the employee working and records the tasks and duties performed. This needs to be fully representative of the job and not just a snapshot in a moment of time. This method is best suited to standard and manual jobs, involving routine and repetitive tasks. It is unsuited to jobs requiring mental effort, decision-making and interpersonal skills, such as managerial work, where required skills are not easily observed. Interviews — These may be conducted with a single employee, a group of employees or a manager who is knowledgeable about employees’ work. The disadvantages of interviews include that they may be expensive and time-consuming and that information may be distorted or out of date. Questionnaires — These may take the form of written and verbal surveys completed by job holders or team leaders. This is often the most economical method of job analysis as it enables standard question to be put to respondents. However, like all forms of survey research, the disadvantages include misunderstanding of the meaning of questions, low response rates and employees feeling threatened or annoyed by the questions. Diaries/logs — This involves employees recording activities involved in their jobs over an extended period of time. This method may be particularly useful for analysing professional and managerial jobs which are difficult to observe. However, it requires considerable effort by employees to maintain diaries and logs and they may lack both the time and self-discipline to do this regularly. Thus, each of the above methods has advantages and disadvantages. A combination of methods is likely to produce better results. Time, expertise and cost factors will influence the choice of methods. It is also important that job holders are not made anxious about the results of job analysis, in terms of possible increased workload, loss of status or adverse reflections on their competence (Compton et al., 2009; Stone, 2008).

70

Stanley Petzall

Job analysts must also be properly qualified and experienced. Sometimes it may be worth engaging outside consultants, particularly where large-scale change is planned or occurring within an organisation.

3.5.

Job Redesign Opportunities

Job analysis essentially seeks to capture and record content of existing jobs. Job redesign, on the other hand, involves the ‘attempt to arrange tasks and duties to make jobs both more meaningful for employees and more efficient’ (Compton et al., 2009, p. 32). Poorly designed jobs tend to produce lower productivity, turnover, absenteeism, sabotage, resignations and unionisation. Well-designed jobs, on the other hand, help promote achievement of the organisation’s strategic business objectives structuring work to meet employers’ needs for efficiency and employees’ needs for job satisfaction (Stone, 2008). The process of job redesign may be prompted by factors such as the impact of new technology, organisational restructuring and enterprise agreements between employers and workers, often represented by their unions. Important motivational theories underpinning modern job redesign include Herzberg’s two factor theory of motivation (Herzberg, Mausner, & Snyderman, 1959; Herzberg, 1966) and Hackman and Oldham’s theory of work redesign (1980). Job design may be based on one of the following principles:

Job simplification This involves the breaking down of larger jobs into their smallest and simplest parts. Simplified jobs become standardised, routine and repetitive. Job analysts (typically industrial engineers) use methods of time and motion studies to observe and analyse work. They record and clock the various movements made by workers, then eliminate wasteful motions and build up a new and simpler method of doing the job. This is based on Frederick Taylor’s famous Scientific Management principles (1947). While this may result in a technically more efficient method of doing the job, involving low-skilled and low cost labour, job simplification suffers from a number of disadvantages. They include: • Repetitive tasks, leading to boredom and lack of challenge for workers • Mechanical pacing, based on the speed of the assembly line, which denies workers the chance to take breaks when required and is too fast for some and too slow for others • Limited social interaction

Recruitment and Selection Preparation

71

• Lack of employee involvement, with all decisions made by management • Higher costs, resulting from high turnover and absenteeism, reflecting employee boredom and lack of motivation (Stone, 2008) Job enlargement This approach is classified by Herzberg (Herzberg et al., 1959; Herzberg, 1966) as ‘horizontal loading’. In essence it involves adding additional tasks at the same level of responsibility to those already performed by the worker. Herzberg opposes job enlargement. He argues that job enlargement usually involves one or a number of the following factors: • • • •

Increasing the amount of production expected from the worker Adding another meaningless task, usually of a clerical nature to the existing task Rotating workers from one boring job to another, without really changing the job Removing the more difficult parts of the job to free the worker to do the less challenging parts (Petzall et al., 1996)

The results of this process include worker boredom and erosion of job specialisation, burnout of staff resulting from overloading, resentment and poor-quality work. Unions also oppose job enlargement because it means more work and encourages reductions in staff (Haertel & Fujimoto, 2010; Stone, 2008). Job rotation This involves systematic rotation of employees between different jobs with similar skill requirements. The aim is to alleviate boredom by giving employees a more diverse range of tasks. However, in practice this may lead to the same problems inherent in job enlargement, if employees are rotated between one routine and boring job. Job rotation, however, can serve a useful purpose where employees are rotated to more challenging jobs, though they may lack skills and require additional training to cope with their new jobs. Japanese organisations typically use job rotation to help employees develop a more generalist perspective of their organisation by familiarising themselves with different functions and geographical locations. This increases their knowledge of the organisation as a whole, helps break down narrow departmental parochialism and may increase skills and worker flexibility (Stone, 2008). Job rotation can also be an effective approach in developing managerial skills and preparing managers for career progression (Petzall et al., 1996). However, there may also be drawback to this approach, including higher training costs, initial lower productivity of rotated employees, disruption of established work groups and increased burdens on supervisors (Haertel & Fujimoto, 2010; Stone, 2008).

72

Stanley Petzall

Job enrichment Job enrichment involves the process of ‘vertical loading’ or building motivators back into the job, to use Herzberg’s terminology (Herzberg et al., 1959; Herzberg, 1966). This is the opposite approach to that adopted by Scientific Management, and it attempts to remedy the deficiencies of Frederick Taylor’s approach. The aim is to give employees opportunities to experience greater achievement, recognition, responsibility and personal growth. Principles of vertical loading include: • • • • • • •

Removing controls while retaining accountability Increasing accountability of individuals for their own work Giving a person a complete natural unit of work Granting additional authority to an employee in his (her) activity Making periodic reports directly available to the worker rather than the supervisor Introducing new and more difficult tasks not previously handled Assigning individuals specific or specialised tasks, enabling them to become experts (Herzberg, 1968)

According to Hackman and Oldham (1980) the core characteristics of enriched jobs involve greater skill variety, task identity (similar to Herzberg’s whole natural units of work) and task significance, meaning they are perceived as having a positive impact on the lives of other people. Enriched jobs also involve greater autonomy for workers and clear feedback on their performance, also in line with Herzberg’s views. However, not all jobs can or need to be enriched. Some may already contain the necessary elements, while other jobs are not capable of enrichment and may be automated out. Some staff may also not want their jobs to be enriched, as this involves added responsibility. Hackman and Oldham (1980) argue that only employees with strong growth needs respond positively to job enrichment. Also, some staff lack the qualities necessary to perform enriched jobs (Haertel & Fujimoto, 2010). Despite the above reservations about job enrichment, as well as the costs to employers of redesigning jobs according to these principles, there is research evidence that the approach has real benefits, including better-quality output, fewer worker grievances, improved worker attitudes, reduced absenteeism and labour turnover and lower costs (Stone, 2008). Particularly in a tight labour market, where demand for labour is strong and supply is limited, job enrichment is a valuable tool for employers to attract and retain qualified and motivated staff. Opportunities for job redesign are also occurring more frequently because job content and requirements are changing rapidly. Some contemporary issues include flattening of organisational structures, which involves stripping out layers of middle management, more project and team-based work, advances in technology and devolution of HR functions to business managers. There is also an increasing emphasis on outcomes and results rather than processes, and roles rather than jobs which present challenges for job redesign.

Recruitment and Selection Preparation

73

Other important trends with significant implications for job redesign include: • Workplace relations legislation which has encouraged the spread of enterprise bargaining, reducing the importance of industrial awards. Flexible work arrangements under the Fair Work Act Cth (2009) may include: flexitime, allowing workers varied start and finish times around core hours; compressed hours or working week, allowing workers to complete a full-time job-load by working more hours each day, but fewer days in the week; annualised hours, where workers work an agreed number of hours in a full year, permitting time off for, say, school holidays; paternity leave beyond the minimum standards to allow new father to spend more time at home and assuming their family responsibilities. However, workers do not have a legal right to demand more flexibility, as the Act gives employers the right to refuse requests on ‘reasonable business grounds’, which are not defined in the Act (Bray, Waring, & Cooper, 2011, pp. 306 307). As a result of the legislation, many rigidities which previously existed have potentially been removed allowing more flexible job design (other Anglo-Saxon countries have similar legislation to Australia) • Increasing working hours for full-time employees as a result of downsizing and restructuring has resulted in organisations trying to achieve more with less. On the one hand, jobs have become more demanding, but on the other, there have been demands for more flexible work practices, such as flexible working hours and telecommuting • Developments in communications technology such as the internet, e-mail, fax, scanners and mobile phones now mean that employees can communicate more easily across geographical locations. While this may facilitate telecommuting it raises other issues such as employees’ needs for social contact and support, as well as making it more difficult for managers to appraise the performance of employees they rarely see • Globalisation means that job designers can no longer confine themselves to local trends, they have to be aware of worldwide trends. Contact with overseas employees, customers, and suppliers is more frequent, and Australian employees may need to work five-and-a-half-six days a week to match their counterparts in Asia (Compton et al., 2009)

3.6.

Competency Profiling

Because of all the changes in the workplace, discussed above, there has been a move towards focusing on skills and behaviours needed to perform a job successfully. This has led to the use of a newer technique of job analysis known as competency profiling. A competency can be defined as ‘an underlying characteristic that results in effective or superior performance in the job’ (Compton et al., 2009, p. 41).

74

Stanley Petzall

Competency profiling involves determining the unique set of competencies which contribute to effective performance in specific jobs, multiple jobs, general job categories throughout the whole organisation (Heneman & Judge, 2003). Organisations which use competency models are seeking to: • Describe job requirements in ways extending beyond a specific job • Describe and measure the workforce of the organisation in more general, competency-based terms • Design and implement staffing programs based on competencies as a method for increasing staffing flexibility in job assignments (Heneman & Judge, 2003, p. 173) Competencies may contribute to success across multiple jobs, that is they stretch across jobs. For example, members of teams may also be expected to possess competencies stretching across jobs, such as adaptability and teamwork orientation. These additional competencies allow for greater flexibility in job placements and assignments in any area where teamwork is required. Some competencies are so general they may apply to all jobs in a particular enterprise. As such, they serve to align job requirements with organisational mission and goals. For example, a restaurant may have a competency requirement of ‘customer focus’ which indicates that a key component of all jobs in the restaurant is to service the needs of customers (Heneman & Judge, 2003, pp. 173 175). Competencies put the spotlight on behaviours rather than qualifications when recruiting and selecting the best candidates for jobs. According to Stone (2008), competency characteristics can be divided into the following categories: Motives — The forces driving behaviours towards certain actions or goals. Traits — Physical characteristics and consistent responses to situations or information. Self-concept — A person’s attitudes, values or self-image. Knowledge — Information in specific content areas. Skill — The ability to perform a specific physical or mental task. Knowledge and skill competencies are visible while self-concept, trait and motives competencies are related to personality and therefore hidden (Stone, 2008). It may, therefore, be most cost effective for HR managers to focus on training for developing visible competencies and to use selection to focus on hidden competencies. HR managers and theorists have tended to concentrate on developing universal performance standards, expressed in terms of outputs rather than inputs. This is known as the standards model, emphasising minimum performance standards (Stone, 2008). Different countries have developed different ideas about what appropriate standards are and what constitutes a competency. In Australia, national vocational

Recruitment and Selection Preparation

75

competency standards are now well established under the Australian Quality Training Framework (AQTF), which has become quite important in the job design process (Compton et al., 2009). Competency profiling has been subject to a number of criticisms, such as: • The meaning of competencies is ambiguous, in particular, competencies sometimes refer to behaviours or actions and sometimes to the outcomes of actions • The use of ‘off-the-shelf’ instruments to measure competencies may need to be tailored to specific situations and cultures • Competency standards tend to focus on the past rather than the present or future • Too much emphasis has been placed on technical competencies • The assumption has been made that managers act rationally, whereas much behaviour is politically motivated Nevertheless, supporters of competency profiling argue that the technique identifies occupational requirements and facilitates the organisation’s achievement of strategic objectives and fosters competitiveness (Stone, 2008). Other benefits claimed for competency profiling include improved recruitment and selection, based on knowledge competencies required for high levels of performance, greater consistency in HRM practices, more business-oriented performance management and greater clarity and objectivity in career and succession planning (Compton et al., 2009). However, Compton et al. (2009) caution that it is vital that agreed competencies in an organisation are in fact valid. If incorrect competencies are laid down, recruitment and selection processes may be misdirected, with dire organisational consequences. Heneman and Judge (2003) argue that organisations which seek to gather data about and use competency models are on speculative ground when they move beyond job-specific competencies. Where general competencies are sought, they may be open to legal challenge on the ground that they are not clearly job-related.

3.7.

Internal Versus External Appointments

Organisations may seek to recruit new employees either internally or externally or by a combination of both methods. An organisation’s recruitment strategy should be linked to its general business strategy. The types of employees recruited should be based on achieving organisational goals. The aim of recruitment strategy and policy is to create a suitable pool of applicants with the correct skills and attitudes. Recruitment strategy should be aligned with the organisational strategy and culture to produce the best fit between available applicants and jobs. Internal and external recruitment and selection have both advantages and disadvantages.

76

Stanley Petzall

3.7.1.

Internal Recruitment

Internal recruitment involves the development of an internal labour market within the organisation. Typically, new employees will only be hired at entrylevel and the organisation will seek to map out career paths to higher level jobs. Creedy and Whitfield (1992) suggest that internal labour markets have four characteristics: (1) Employment stability — A major reason for the creation of an internal labour market is that employers want to protect their investment in human capital by establishing conditions of employment which make it more attractive for employers to stay with the organisation rather than move to improve their conditions. If the labour turnover rate is less than 10%, that is prima face evidence of the existence of an internal labour market. (2) Ports of entry — Entry to the internal labour market is at lower job levels. Recruitment for higher level jobs occurs within the enterprise, thus creating career paths for employees. (3) Constrained wage adjustment — Employees are protected from the operation of market forces of supply and demand. Employers respond to labour shortages by means such as restricting output and reducing recruitment rather than increasing earnings. (4) Attachment of wages to jobs — An important feature of the internal labour market is that wages are paid based on job classifications rather than employee productivity. Wage structures in internal labour markets are rigid. Internalisation of the labour market seems to have occurred for two reasons. Firstly, employers seek to reduce turnover in order to capitalise on the benefits of skilled employees and to recoup their investments in training. Secondly, there is the desire to reduce transaction costs associated with the recruitment of skilled labour and the constant need to renegotiate and police the contract for effort and reward (Smith, 1998).

The advantages of internal recruitment include: • Cost effectiveness — advertising costs are minimised • Time effectiveness — less training is required for internal candidates • Internal candidates are more familiar with the structure and culture of the organisation and the personalities of the players • The organisation is more familiar with the skills, knowledge and abilities of internal candidates and their ability to slot into vacant positions • Morale within the organisation will be high if it is known that internal candidates will be promoted • There may be a greater likelihood of success in hiring a known quantity in terms of subsequent effective performance (Haertel & Fujimoto, 2010)

Recruitment and Selection Preparation

77

The disadvantages of internal recruitment, on the other hand, include: • In-breeding, resulting in stifling of creativity, a restricted pool of candidates and political in-fighting • Discontent among those who are not promoted (Compton et al., 2009; Haertel & Fujimoto, 2010; Stone, 2008) Lack of external competition may also promote favouritism and nepotism among managers making promotion decisions. A practical problem may also be that managers and supervisors are reluctant to let go of their most talented staff, and effectively stymie their efforts to be promoted into other areas of the organisation.

3.7.2.

External Recruitment

The advantages of external recruitment are as follows: • There is a larger pool of talent to be drawn on • New blood and ideas come into the organisation, resulting in greater innovation and creativity • Workplace diversity may increase • Outside employees are not members of internal cliques within the organisation (Compton et al., 2009; Haertel & Fujimoto, 2010; Stone, 2008) On the other hand, external recruitment may also have disadvantages, including the following: • Attracting and selecting new employees may be more costly and time-consuming; • Orientation may take longer and more training may be required than for internal candidates; • Morale of insiders may be adversely affected; • There is a greater danger that the new employee may not fit in culturally and prove unsuited to the job (Compton et al., 2009; Stone, 2008) Many large companies, such as BHP, Cathay Pacific, Dow Chemicals and Shell, have policies of internal recruitment. It is noteworthy that these companies are sufficiently large to be able to develop a suitable internal market for labour. Various factors, such as downsizing, and cutting costs of full-time employees, on the other hand, have disposed many organisations to favour of external recruitment of contractors, temporary workers and executive leasing. However, in Stone’s opinion, internal recruiting has one huge advantage that management’s perceptions of an individual are likely to be more accurate and a better predictor of success than the information they can gather about external candidates (Stone, 2008).

78

Stanley Petzall

Research (Moser, 2005) has also confirmed that that those hired through internal recruitment are more likely to have realistic expectations about the organisation, based on their prior knowledge, and therefore that their expectations are more likely to be met. Further, research has also established a positive correlation between met expectations, job satisfaction and organisational commitment (known as proximal or direct post-hire outcome variables). On the other hand, there is no direct correlation between met expectations and so-called distal (or indirect) post-hire outcomes, such as job performance and turnover. Moser (2005) cautions that his findings should not be interpreted as indicating that internal recruitment and selection is always superior to external recruitment and selection because internal recruitment may not be possible (e.g. in the case of a newly founded organisation), may be too expensive or may not provide a sufficiently large field of candidates to ensure that the best talent is recruited. Ultimately whether an organisation relies on internal or external recruitment and selection, or a combination of both, will depend on factors such as its overall organisational strategy, its human resource policies, employee morale and the financial situation. Some public-sector organisations are also compelled to advertise vacancies both internally and externally (Compton et al., 2009). In practice, the three most common sources of recruitment are employee referrals (an internal source), newspaper advertisements (an external source) and ‘walk-ins’ (which may be classified as either internal if they are the result of information supplied from within the organisation or external if an applicant simply walks in off the street) (Breaugh & Starke, 2000). Of course, this study was published in 2000 and the findings may be dated, in the sense that web-based recruitment and selection have become much more common since then, so this may now be another very common source of recruitment and selection.

3.8.

Non-Traditional Sources

Organisations may also choose to recruit from non-traditional sources. These sources may include referrals of new prospective employees by existing employees, which may be a low cost but very effective method of recruitment. Apart from cost considerations, current employees should have a good knowledge of what is involved in the job and what the organisation is looking for. They may also be able to sell the benefits of working for the organisation to job applicants. Some organisations have even found it worthwhile to provide incentives to existing employees to introduce prospective employees. Such incentives may include cash prizes or other rewards such as paid travel, cars or furniture. Where this is done on a large scale, a formal program may be established with specific guidelines. The costs should still be less than for traditional recruitment methods as no external advertising is needed.

Recruitment and Selection Preparation

79

A formal employee referral program requires certain guidelines, which may include: • Vacancies need to be advertised internally, either through notice boards or through the intranet • Specific skills and qualifications for vacant positions need to be communicated • The program and rewards should be extensively publicised. Prizes for successful referrals should be sufficient to be motivational, to existing employees. Typically organisations which use this method offer prizes ranging from a few hundred to Au$1000 • Eligibility for prizes or bonuses should be set out. Certain categories of people may be excluded, for example, HR managers or other senior officers, employees of customers of the organisation and relatives of current employees • Rewards may also be given only after a new employee who has been referred by a current employee has completed a qualifying period Also, it is essential that the organisation has a good performance appraisal system to measure the performance of those hired by referrals so as to ensure that referrals are cost effective in relation to bonuses given to employees for introducing new employees. However, there are a number of important problems with the referral method. For example, if a new employee is appointed after a referral fails to perform, how will this impact on the person who made the referral? Also, if a referral is rejected, will this cause conflict with the employee who made the referral? Further, despite the existence of a rewards program, existing employees may lack the motivation or ability to make referrals. The referrals method may also fall foul of EEO legislation, particularly where past discrimination has occurred (Compton et al., 2009; Heneman & Judge, 2003). Some other sources of recruitment include unions, and educational institutions. Some unions provide employment services for their members. Whether employers make use of such services may depend on how good a relationship they have with the union. The days of the ‘closed shop’ where unions were able to force employers to accept their nominations for jobs are long gone. As far as educational institutions are concerned, some organisations are interested in attracting school leavers. They may offer apprenticeships, cadetships or incompany training courses to prepare them for specific jobs. For example, some department stores, as well the fast food restaurant chains, such as McDonalds, use this method to recruit potential buyers and managers. Internships are a useful arrangement from the perspective of both prospective employers and employees. Under an internship, students have a continuous period of employment with an employer for a specified period of time. Not only does this enable the organisation to find part-time employees, but it also allows students the opportunity to find full-time jobs after they have finished their

80

Stanley Petzall

studies. It has been demonstrated that students who go through internship programs have better employment opportunities than those who do not. Employers who recognise the value of internship programs are careful to ensure that students are not just treated as cheap labour. They seek to provide meaningful employment experience as they recognise that rewarding and challenging internships are a useful pathway to full-time employment. Favourable responses by students also find their way back through the grapevine to other students interested in pursuing the same pathway (Heneman & Judge, 2003). However, opportunities for school-leavers are obviously very limited and more organisations may be interested in attracting university graduates. Most universities run employment services for students and provide services to put graduates in touch with employers. Some employers also run recruitment drives at universities, for example, accounting firms which send representatives to run information sessions for interested graduates or students about to graduate (Compton et al., 2009). Other non-traditional sources of recruitment include boomerangers (employees who have left the company, but wish to come back again); fresh retirees (professionals looking for a second career); re-entry workers (particularly females who may have left the organisation to have children but now want to re-enter the workforce) and temporary workers.

3.9.

Advertising

For many organisations, advertising in the press, whether metropolitan, local or in specialist journals, is still the major method of recruitment, although online advertising is also gaining popularity (see below). The three main types of press outlets are: (1) National or metropolitan daily newspapers — These newspapers have a special ‘classified section’ section for employment. For those firms seeking senior and professional staff, prominent display ads in the news section may also be used. Compton et al. (2009) describe the use of these types of media as the ‘shotgun’ approach in view of their large readership. (2) Local suburban newspapers — These newspapers also have a ‘classified’ section. They are suitable for recruiting for unskilled and clerical vacancies and people who want to work close to home. They also have lower costs than metropolitan or national newspapers. (3) Specialist journals — Advertisements in these types of journals are targeted at people in a specific profession or in the search for specialist skills and knowledge. The assumption is that the advertisements will only be read by the target audience of specialists. Compton et al. (2009, p. 55) describe this as the ‘handgun approach’. It is more selective and may be more effective than advertising in metropolitan or national newspapers, but there may be more time delays as specialist journals are usually published only weekly or monthly.

Recruitment and Selection Preparation

81

Heneman and Judge (2003) suggest that advertisements should be coded according to the newspaper or journal to which they are sent so that response rates can be recorded and the yield for particular advertisements can be calculated.

3.9.1.

Radio and Television

Radio and television (TV) can also be useful advertising media, particularly where there is large-scale recruitment and print media are not producing the desired results. Examples include banks, police services and the defence forces. Visual representations of job opportunities may have a bigger impact on certain target groups, such as school-leavers, than use of traditional print media. Also, it is possible to have a big impact through a ‘blitz’ campaign over a short period such as two weeks. Radio has several advantages as a recruitment medium. Radio stations generally have demographic information readily available, so recruiters can select stations likely to target their chosen demographics. Also, radio ads have a greater reach than newspapers — more people tend to listen to radio than read newspapers. According to the estimates, in the United States, 95% of Americans listen to the radio every day, with the average person listening for 4 hours. In addition, radio ads are cost effective. One American company was able to run a 60-second commercial 73 times over three days for the cost of one ad in the Sunday edition of a newspaper. In tight labour markets, radio ads are also more likely to be heard by people in jobs, who are the source of new recruits, whereas jobs-wanted ads in newspaper are generally read by those who are not very happy with their current jobs or are unemployed (Heneman & Judge, 2003). However, the disadvantages of radio and TV advertising include: • Only brief and simple messages are possible • Repetition is necessary as a lack of a printed record for interested parties to refer to • The cost, particularly of TV advertising, is high • There is a lack of target specificity, so much of the effort may be wasted (Compton et al., 2009; Stone, 2008) • Both radio and TV ads cannot always be run in the time slots preferred by advertisers, as these slots may already have been booked by other advertisers • Radio ads are limited to local markets, so they are only suitable where recruitment is for the local market (Heneman & Judge, 2003) The advantages of a successful advertisement are that they capture the attention of the target audience, appear applicant-friendly and convey a good image of the organisation. However, unfortunately many ads do not meet these requirements in that they are organisation-centred, unappealing and in some cases, downright boring.

82

Stanley Petzall

Research has shown that, contrary to popular opinion, applicants are less interested in the remuneration package than in the nature of the job, the type of industry and the experience, qualifications and personal qualities required (Stone, 2008). Research (Breaugh & Starke, 2000) suggests that it is critical that the recruitment actions of a prospective employer attract the attention of job applicants. The following attributes are likely to generate attention: • • • •

Messages which are vividly couched (e.g. including pictures) Messages conveying unexpected information Messages which provide personally relevant information Messages conveyed in face-to-face conversations

Sengupta (2009) suggests that the most effective recruitment advertisements make use of the marketing principle of positioning and that, in fact, such advertisements should be employed as a strategic corporate communication tool. ‘Positioning’ can be defined as an attempt by a marketer to create an image of the product brand or service in the minds of customers. Recruitment advertisements can be created by the same strategy, except that the marketer is replaced by the recruiter and the target audience are the prospective applicants for positions in the organisation. Four types of positioning strategy can be distinguished: (1) Career positioning — Here the company highlights not only the job at hand, but also the career opportunities which it promises. (2) Employee positioning — An image is created about the kind of people who work for the company and their experiences through the use of photographs or interviews with current employees. Hopefully this type of positioning may make applicants feel a strong urge to identify with the profiles presented. (3) Workplace positioning — Here the emphasis is placed on the workplace culture and environment, as prospective employees no longer look only at the narrow parameters of the job and its remuneration. (4) Corporate positioning — This involves the comparison of corporate brands and image, just like detergent advertisements which suggest that one brand washes whiter than another. Not all advertisements my use all four positioning strategies. However, those which succeed in using all four may create the maximum impact on job applicants and prospective employees.

3.9.2.

AIDA

An acronym commonly used by media professionals to ‘sell’ products and services, which at least partly incorporates these rules, is AIDA.

Recruitment and Selection Preparation

83

This stands for: Attention An eye-catching descriptive title is important to gain attention. The first paragraph should also be interesting and contain much of the information about the job. Interest Ideally, critical details such as job specification and reporting relationships and qualifications should be contained in one or two easy to read paragraphs. Desire Here there should be a special, direct and individual appeal to prospective applicants. Factors which could be emphasised include status, remuneration, stated as a fixed salary or a range, security, promotional prospects and progressive employee policies. In some cases job advertisements may not state the salary or salary range, particularly for senior appointments, but phraseology such as ‘a competitive salary’ may be used. Action This invites the applicants to write, telephone or e-mail with the guarantee of confidentiality. Ideally, a name should be provided for applicants to contact (Compton et al., 2009; Stone, 2008). Alternatively, the candidate could be invited to contact a nominated individual by e-mail. Research has also shown that the size of advertisements is influential — with larger advertisements attracting more attention. Effective advertisements, however, should be factual and avoid unnecessary ‘hype’. They should also try to avoid using terminology such as ‘aggressive’ and ‘hard-hitting’ which may discourage female applicants (Stone, 2008, p. 212). While organisations are obviously interested in promoting a favourable image of themselves, they should avoid creating unrealistic expectations among applicants. Organisations which do this may face resulting problems, such as high labour turnover when disillusioned employees leave the job, high absenteeism, or even fines for misleading advertising if disgruntled employees decide to take legal action. A large body of research has been conducted into the effectiveness of realistic job previews (RJP’s) in advertising. The overall conclusion is that provision of realistic information is more likely to result in more satisfied employees with lower turnover rates (Compton et al., 2009).

84

Stanley Petzall

The reason for this seems to be that providing job applicants with realistic expectations enables them to cope better with the demands of the job once they are hired. It also seems to encourage the belief among employees that the employer cares about them and has been honest with them, which leads to higher levels of organisational commitment and trust. However, the downside is that some applicants may be scared off by the negative aspects of RJP. In fact, research suggests that those scared off are more likely to be high-quality applicants, particularly those with strong general qualifications and those with experience or familiarity with the job. Overall, RJP has been shown to be weakly positive (with slightly higher job satisfaction and lower turnover among newly hired employees). At the same time, it has been found to be negative (slightly reducing ability to hire better-quality applicants). These outcomes, in turn, have been affected by a number of factors. According to Heneman and Judge (2003, pp. 237 238), these findings lead to the following recommendations: • RJPs are less effective when presented early in the recruitment process in reducing labour turnover post-hiring, than those presented just before or just after hiring; • RJPs presented verbally have a tendency to reduce turnover more than written or videotaped RJP’s and • RJPs are less likely to result in turnover when the organisation ‘limits’ turnover to a period of time after RJP (e.g. by contracts, or above market salaries). Overall, the research findings suggest RJP should be given verbally and it is best to reserve them for later use in the process of recruitment (i.e. RJP should not be given to applicants at their initial exposure to the organisation). Obviously, organisations should not go overboard in giving RJP, by stressing the positives, while still being honest about the negatives, better-quality candidates should not be unnecessarily scared off. However, some researchers have argued that excessive reliance has been placed upon RJP and met expectations, and that there are some methodological problems in RJP research. Instead, Greenhaus, Seidel, and Marinis (1983) argue that instead of focusing on whether expectations of job applicants are met, more attention should be paid to whether a job provides for ‘value attainment’ (i.e. a match between an individual’s job values and job experiences). These researchers proposed value attainment as an intervening variable between having realistic expectations and experiencing job satisfaction. They also tested their hypothesis, and found in two studies that ‘value attainment accounted for significantly more variance in facet satisfaction than did realistic expectations’ (Greenhaus et al., 1983, p. 394). Much research has been done on the effectiveness of various recruitment sources. Effectiveness has been defined in the research as resulting in greater employee satisfaction performance and retention. Overall, the research suggests that referrals, job postings and re-hiring of former employees are the most effective sources. Newspaper advertisements and employment agencies came up as the least effective. However, a shortcoming of this research is that newer methods of recruitment such as use of the internet have not been studied to any degree (Heneman & Judge, 2003).

Recruitment and Selection Preparation

3.10.

85

The Internet

E-recruiting or use of the internet to advertise job vacancies has become an increasingly popular method of recruiting staff in recent years. Through e-recruitment, organisations can advertise job vacancies around the clock. Applicants have the opportunity to use e-mail to submit applications, which has the advantages of rapid response times and low cost to the recruiting organisation. Organisations can post comprehensive details of job vacancies on their websites. E-recruitment is also well suited to reaching a wider labour market sourcing job applications nationally and internationally because of the global reach of the internet. This form of advertising is particularly well suited to recruiting computer-literate applicants. Use of the internet has been particularly useful for private recruitment consultants in building up their HR data bases for their clients. Many large organisations have their own websites showing job vacancies. In numerous instances, applicants can also apply online. However, experience shows that many websites do not live up to their promise and act as little more than electronic postboxes to which applicants can send their re´sume´s. A best practice study of the websites of 140 high-profile American organisations demonstrated seven features for high-impact websites, which are: (1) A site layout which is easily navigable and gives information about the culture of the organisation. (2) A ‘job cart’ function, permitting prospective applicants to apply for multiple positions within the organisation. (3) Re´sume´ builders where applicants can submit details of their education and experience. (4) Detailed information on career opportunities. (5) Clear graphics. (6) Personal search engines, permitting applicants to lodge their profiles in the organisations database and later expand their information. (7) Self-assessment inventories, to assist in steering university students towards appealing career paths (Heneman & Judge, 2003). The internet is also a useful medium for job applicants to post details of their experience, qualifications and skills. The cost to applicants ranges from nothing to around $200. Applicants’ online re´sume´s can be forwarded to employers when they meet the employers’ criteria. There are systems available which make it easy for employers to search popular databases using Boolean logic, for example, a recruiter interested in locating re´sume´s of prospective engineers for a Melbourne-based manufacturing facility could type in ‘engineers + Melbourne + manufacturing’ (Heneman & Judge, 2003). Organisations and individuals may also maintain social media sites, such as Facebook, which are used both to convey and receive information. However, organisations recruiting through the internet should try to ensure confidentiality for job applicants. Similarly applicants posting their details online should

86

Stanley Petzall

check how confidentiality issues are handled and avoid posting personal details such as their addresses. Generally a telephone number and e-mail ids are sufficient for contact purposes. They should also try to research the sites on which they advertise themselves to ensure the sites are bona fide and whether they belong to recruiting companies, head-hunters or are general recruitment sites. Also applicants would be well-advised to avoid posting their re´sume´s on too many sites, making them appear desperate. Some disadvantages of e-recruiting include the following: • The difficulty recruiters may have in attracting the attention of qualified jobseekers, given the vast amount of information and different websites on the internet • The need for screening of candidates, so as to avoid websites being swamped with poor quality or irrelevant applications • The need for management to respond quickly to applicants who make suitable candidates. Nothing is more annoying to applicants than having to wait for weeks or months for a reply, and many quality-applicants may be lost if there are excessive delays • Internet advertising may discriminate (albeit unintentionally) against some minority groups, particularly in technical fields where women and minority groups are underrepresented. There may also be discrimination against those who are computer-illiterate, though if the job calls for computer literacy, this may not be a problem (Compton et al., 2009; Stone, 2008) Research evidence suggests that e-recruitment is particularly well-suited to niche areas such as graduate recruitment, education and technology. On the other hand, middle and senior managers, as well as older workers, still generally prefer the medium of newspaper advertising or recruitment consultants in their job searches. Some organisations also still prefer the human touch in their recruitment campaigns (Heneman & Judge, 2003; Stone, 2008).

3.11.

Retention Strategies

There is little point in organisations investing heavily in recruitment and selection if they do not make an effort to ensure retention of staff after the recruitment and selection phase. The high cost of labour turnover has been referred to earlier in this chapter. Retention strategies for the organisation include a competitive remuneration structure. The novelist Jane Austen remarked: ‘A large income is the best recipe for happiness I ever heard of’ (Stone, 2008, p. 434). A systematic approach to remuneration is the best way to attract and retain quality staff. However, it should be remembered that once people achieve a certain level of income, they become more interested in non-financial incentives, some of which are discussed below. Job

Recruitment and Selection Preparation

87

redesign may also be a useful strategy to retain staff by making their work more interesting and challenging. According to Stone, organisations should have a formal remuneration policy which: • Reflects the organisation’s strategic business objectives • Makes clear what the organisation wants to achieve through its remuneration program • Is communicated clearly to all employees • Provides the basis for designing and implementing effective remuneration and benefit programs There are many payment systems that can be used, but key is that they are able to attract and retain the right quality mix of employees, provide for equity between employees and ensure salaries and wages remain competitive in the marketplace. In addition to pay, organisations may offer benefits to employees, including: • Provision of childcare centres and services, particularly valued by female employees with children • EAP, which include counselling on drug and alcohol dependency, marital, family and financial problems • Preventive health programs, which emphasise physical fitness, stress reduction and weight loss as well as cessation of smoking. Such programs have been effective in decreasing absenteeism, improving morale and reducing workers’ compensation claims as well as improving the image of the organisation. However, they have been criticised for targeting white-collar workers rather than blue-collar workers, who may have a higher incidence of health problems • Flexible working hours; there are various ways of organising working hours which allow employees to change their starting and finishing times, provided certain core times are covered. Apart from flexitime, other variations include job-sharing, where a job is split between two persons, each working on set days, and permanent part-time, where workers work lesser hours than fulltimers and receive pro rata pay and benefits. Such arrangements are particularly well-suited to and valued by female employees with child care obligations. Other benefits may include plans to purchase company shares at a discount, profit-sharing, income protection insurance, study leave, sabbatical leave and so on (Stone, 2008) Provision of a range of benefits available to all employees complies with the idea of ‘cafeteria rewards’, based on Vroom’s expectancy theory of motivation where employees can choose from rewards of particular value to themselves (Petzall et al., 1996). Providing such benefits to employees may also contribute to the achievement of the organisation’s strategic objectives, as well as to the long-term competitive interest of an organisation as these benefits can be a positive recruiting tool and help retain and motivate workers.

88

Stanley Petzall

Other more intangible factors involve satisfying employees’ intrinsic needs through providing interesting and challenging work, based on well-designed jobs (see above). Another intangible is provision of a positive work environment. The characteristic of such environments is ‘psychological safety’ where employees feel they have more positive emotional experiences at work than negative experiences and where they feel supported and rewarded (Haertel & Fujimoto, 2010, p. 38). It is also very important for organisations that wish to retain their valued employees that they engage in career planning to map out career paths for their employees. However, this is becoming increasingly difficult in an era of rapid change, restructuring and downsizing. Employees, of course, also have a responsibility to manage their own careers, but organisations can assist them in this regard (also see organisational diagnostics in Chapters 1 and 2). The HRM department is in a good position to promote career planning among employees. It can provide information about career education, vocational guidance, career counselling and publicise training and development programs. Some of the benefits of career planning include: • Alignment of strategy and internal staffing requirements — through HR planning, the HR department can prepare employees for job openings which may come up, resulting in a better mix of talent to support company strategies • Development of employees who can be promoted, to provide an internal supply of talent to fill position resulting from resignations, retirement and growth • Decreasing turnover — if the organisation is concerned with career development, this is likely to foster loyalty and reduce turnover • Tapping into employee potential — having specific career goals encourages employees to better use their abilities, as well as causing them to perform better in their current positions • Reducing hoarding — without career planning, selfish managers may hoard talented employees • Satisfying employee needs for esteem, recognition and growth • It may assist with affirmative action by helping members of minority groups to prepare for more important jobs (Stone, 2008) Well-run organisations should also monitor turnover closely to identify any factors which are causing avoidable turnover. In some cases, turnover may be unavoidable, for example, employees retiring, resigning for family reasons to devote more time to their families, health problems and disability, relocation caused by a partner being transferred to another city or country and so on (Levesque, 1996). However, in many cases, turnover is avoidable, but organisations do not have suitable policies and practices to prevent it. The most common reasons for voluntary resignations are related to job satisfaction, and include the following: • Organisational influences, such as inflexible policies, authoritarian managers and supervisors, lack of organisation and direction and uncompetitive pay and benefits

Recruitment and Selection Preparation

89

• Poor work environment and working conditions, including health, safety, coworker relationships and properly trained supervisors and managers • Poor communication between managers and workers • Poor job content including lack of challenge, responsibility, repetitive tasks and lack of promotional or training opportunities • Personal reasons, such as childcare, relocation with spouse and change of career (Levesque, 1996) The first three issues relate to Herzberg’s hygiene factors, the third to his motivators. All except for the fourth factor are under the organisation’s control. While some turnover is both inevitable and even necessary, in most industries average turnover numbers can be ascertained, and the organisation’s turnover rate can be compared with those numbers. Also, organisations which are really interested in reducing turnover have means at their disposal such as annual employee satisfaction opinion surveys and exit interviews to ascertain the true reasons why employees are leaving and try to do something about them. However, in relation to opinion surveys, there is little point in conducting such surveys unless there is a willingness to act on widespread negative feedback. Organisations which conduct annual opinion surveys but fail to implement any change merely run the risk of engendering employee cynicism that the exercise is only a meaningless ritual (Levesque, 1996). Another way in which organisations can retain valued employees is through being placed on in-house and other types of training and education programs.

3.12.

Human Capital Theory

Human Capital Theory (HCT) has been described as the orthodox approach to the economics of training. The theory was originally advanced to explain the role of education in advanced economies during the post-war boom years after 1945. Human capital theorists argued that education played an important role in economic growth, which could not be explained solely by growth in physical capital. Education was thus treated as a form of investment. The work of Becker (1964, 2008) demonstrated that higher levels of education have resulted in higher earnings for individuals in their lifetimes. Becker has also related the outstanding records of Japan, Taiwan and other Asian economies in recent decades to the development of human capital. Lacking in natural resources, the Asian Tigers grew rapidly by relying on well-trained, educated and hard-working labour forces (Becker, 2008). Becker (1964) also applied the theory to the impact of training in organisations. Becker argued that industry-based training could be seen as a form of investment by organisations to increase employee productivity. Training, it is argued, has resulted in higher wages and increased skills for employees. However, training does not necessarily result in the same benefits for organisations and the individual. Two forms of training given to individuals have been distinguished, general and specific training. General training raises the productivity of an individual regardless

90

Stanley Petzall

of the organisational context of the training. An often-cited example is apprenticeship, where trainees learn transferable skills which can be carried over to other organisations. On the other hand, the apprentice has to forego full wages while under training, thus contributing to the costs of training. While this improves job mobility for individuals, it may result in organisations deriving no return on their investment in training. Specific training, on the other hand, only raises the productivity of individuals within the organisation which has trained them and does not give them transferable skills. There is thus much less risk of individuals leaving the organisation, and organisations have more assurance of getting a return on the costs involved in training. Employees also do not have to forego income while undertaking training — they can ‘earn while they learn.’ Thus, HCT posits that organisations should engage in specific rather than general training (Smith, 1998). However, while many economists and policy-makers have accepted HCT as the best explanation of how training operates in organisations, there has been much critical debate about the assumptions of the theory in relation to the linkage claimed between training and higher wages for employees as well as the distinction drawn between specific and general training. The basic assumption of HCT is that training will lead to higher productivity for employees, which will both benefit the organisation and be passed on in the form of higher wages. However, while there is a clear link between higher earnings and higher levels of training, the nexus between higher earnings and productivity has not been established. There is, in fact, no clear evidence that training is related to higher levels of earnings for employees nor that higher earnings are necessarily correlated with higher levels of productivity (Smith, 1998).

3.13.

Signalling Theory

Other explanations have been developed as to why employers will pay their trained employees higher wages if training does not increase their productivity. Under screening theory, the level of education or training of employees is used as a means of filtering better-educated or highly trained employees into better-paid jobs. Signalling theory develops this notion. It is assumed that organisations know little about the potential productivity of employees at the point of hiring. But if the potential employee possesses a higher level of education or training, this signals to the employer that the potential employee has the ability to learn more and to work more productively. If employees continue to invest in their own education and training when they have joined an organisation, this signals to the organisation that they have higher levels of ability or motivation. Thus signalling theory makes no direct causal link between training and productivity. Rather, it is the innate ability of employees which helps generate improved productivity for enterprises. If an employee undertakes training, this is merely a signal to the organisation that an individual is capable of working more productively.

Recruitment and Selection Preparation

91

The assumptions of HCT about general and specific training have also come under question. Some problems here are that the distinction is a difficult one to maintain in practice. Most training programs have both general and specific elements. Also, in practice, the assumption that organisations will prefer specific to general training has been shown to be dubious. Evidence from recent studies in both the United States and Australia suggests that most employers are moving away from highly specific training to more general training in behavioural skills such as problem-solving, communications and teamwork, despite the fact that such skills are more readily transferable across organisations. As organisations are moving towards implementation of new working practices, general behavioural skills rather than narrow technical skills are required. There is also an increasing belief among many experts that non-job-related training, including skills such as time management, assertiveness, stress management and even liberal arts subjects, leads to on-the-job benefits. There is, in addition, an increasing recognition that organisations may not be able to offer lifetime employment to more than a minority of workers and that hence there is an obligation to invest in employee development so as to ensure employee employability, even if not within the firm providing the training. Expenditures on training and development also serve to reassure employees that organisations are interested in their welfare (Stone, 2008). While HCT was under a cloud in the 1970s, the 1980s saw a revival as governments of developed countries attempted to address economic problems caused by increasingly global competition. Research in industries characterised by high levels of technological change showed that better-trained and educated workers were able to adapt more efficiently to new technology than those who were not so well-trained or educated. Industries with high rates of innovation had a tendency to create the strongest demand for educated employees. Thus, in neo-HCT, training was seen as increasing the productivity of employees by increasing their capacity to adapt to change and innovation, particularly technological innovation. Therefore, in neo-HCT, technological innovation appears as a mediating variable between education and training and productivity. Empirical research appeared to bear out this version of HCT, with the proviso that training in itself was insufficient to guarantee a return for the enterprise. Work organisation also had to change to allow employees to work productively with new technology. In particular, a greater teamwork orientation was required to enable employees to adapt to changes in technology more quickly (Smith, 1998). However, whatever the predictions of theory about training, the fact remains that organisations which wish to remain competitive still need to invest in training and development to ensure that the skills and knowledge of their employees match future HR requirements (Stone, 2008).

3.14.

Person Organisation Fit

While the primary concern in recruitment and selection is with how well a prospective employee will ‘fit’ in the job for which he/she is being considered, a broader

92

Stanley Petzall

perspective may result in a better decision. This involves consideration of how well the person fits into the organisation. The issue of person job match has been likened to ‘the bull’s eye of the matching target’ (Heneman & Judge, 2003, p. 15). However, other matching concerns involving the broader organisation involve organisational values, new job duties, multiple jobs and future jobs. Values are the norms of desirable behaviour expected of employees. Some examples might include honest and integrity, ability to work hard and showing concern for fellow employees and customers. Such values are typically unwritten and do not appear in job descriptions. Nevertheless, they are very important, and if employees do not share them, their recruitment is unlikely to be successful (Heneman & Judge, 2003). These values may be communicated during employment interviews or may be ascertained from company mission statements. But it is important to try to ensure that prospective employees and their organisation share similar values, as far as possible from the point of view of both parties. New duties are those which may be added to the job over time. Thus the organisation wants to look ahead to the future and ideally hire those who will be able to perform an expanded job competently. This involves assessing the applicant’s ability and willingness to learn and develop and if he or she possesses qualities which enable the organisation to achieve greater flexibility in deploying existing staff rather than having to hire new staff all the time. The same applies to willingness and ability to perform in multiple jobs. Small business in particular has a need for ‘jacks of all trades’. Organisations experiencing strong growth may also need flexible employees who can handle multiple assignments or projects, in addition to or instead of their ‘normal’ duties. Finally, organisations need to look forward to the future and consider what assignments and positions a new hire could fill. This involves long-term matches, including transfers and promotions as the employee becomes increasingly experienced. The first priority of organisations in making staffing decisions is to match the person with the job, but once this has been done, broader consideration should be given to the issue of person organisation match. Even though the distinction between the two types of match may be somewhat fuzzy (Heneman & Judge, 2003).

3.15.

Decision-Making

An important part of the preparation for recruitment and selection is the use of different decision-making approaches to recruitment and selection, such as mechanical approaches (including ranking, grading or decision-making matrices) or more subjective or judgmental approaches to discriminate between job applicants. Gatewood, Feild, and Barrick (2008) discuss the advantages and disadvantages of using mechanical and judgmental approaches in recruitment and selection. Mechanical approaches refer to collection of data about applicants without the use of human judgment by decision makers. Data collected by this type of method is more objective (such as an applicant taking a mental ability test.) On the other

Recruitment and Selection Preparation

93

hand, more subjective decisions about selection may be made solely by the use of human judgment, for example, using an unstructured employment interview. As we discuss in the next chapter, such an interview typically involves asking different questions of different applicants, questions asked of applicants are developed spontaneously by interviewers and there is no formal means of scoring answers given by applicants. Once data about applicants has been collected, there are also different ways of combining information to make decisions about selection of applicants. Thus, for example, a selection decision may be based on combining data derived from applicants’ tests and interview scores by use of a statistical equation designed to predict job performance. This is a mechanical form of combining predictor information about likely job performance. On the other hand, a selection decision maker may examine applicants’ interview and ability test score results and use intuition or ‘gut instinct’ to select the successful applicants. This is a subjective method of combining data about applicants. Numerous studies have been undertaken to make comparisons between mechanical and judgmental combinations of data. All these studies have concluded that mechanical combinations are superior to judgmental combinations. Reasons given by Bass and Barrett (1979) for these results are as follows: Firstly, the accuracy of predictions depends upon proper weighting of predictor scores to be combined. As precise judgments about what weights are appropriate are almost impossible to make, even mechanical approaches which employ equal weightings of predictor scores are more likely to result in superior decisions than methods which rely solely on human judgment. Secondly, more accurate models can be created statistically as data about additional applicants are added to data already available. As a result, it is possible to continuously improve the decision-making model and adapt it to environmental changes. On the other hand, decision-makers relying solely on their own judgment experience cognitive limits in their ability to improve their prediction models. Also, many decision-makers develop their judgment models early in life and never change them, which leads to increasing selection errors. Thirdly, decision-makers who rely solely on their own judgment can at best only do as well as those using a statistical model, and then only if they have been thorough, systematic and objective in both collecting and combining information. Because many managers and supervisors only sporadically make selection decisions, it is less likely that they will be thorough, systematic and objective in the collection and combination of selection information. Thus, their decisions are unlikely to equal those of a statistical model. Fourthly, error is more likely to result from combining judgmentally subjective data (e.g interview assessments) with objective data (e.g. test scores). Implicit theories held by those making subjective judgments about what constitutes a good applicant, which may be derived from past experience or other sources, may bias evaluations. Moreover, inconsistency in decision making may result from many causes, including time pressure to make a decision, having had a bad day at home or even ‘recency error’ (which involves being unduly influenced by the previous

94

Stanley Petzall

candidate who was interviewed) in making comparisons with most recently selected applicants. Finally, many selection decision-makers may suffer from over-confidence. This may cause them to overweight or selectively identify characteristics of applicants which confirm their own beliefs about the association of those characteristics with different types of behaviour. For example, if an applicant has attended a prestigious university, he or she is better-qualified to perform in the job than an applicant who attended a less prestigious university. Information which might not fit an overconfident decision-maker’s hypotheses is ignored. Therefore, such decision-makers tend not to learn from experience and to modify their methods. To sum up, use of standardised and more objective selection procedures in collection of information about applicants, with subsequent statistical combination of information collected is superior to using more subjective selection procedures, followed by selective judgment about how the information should be combined. Gatewood et al. (2008, p. 230) recommend that decision-makers responsible for selection in organisations observe the following three rules: (1) Make use of standardised selection procedures involving the same content, administration and scoring for all applicants. The procedures should also be valid and reliable for a specific selection purpose, such as increasing productivity at work. (2) Use selection procedures, when possible, minimising the role in collecting information of the person making the selection decision. They recommend procedures such as structured employment interviews, objective personality inventories, work sample tests and computer administered skill-tests, which have specific keys for scoring desirable and undesirable responses. (3) They also suggest that those responsible for selection should not play a major role in determining the overall scores of applicants by combining data collected from two or more selection procedures, for example, interviews and psychological tests. They argue that selection decision making will be enhanced where a mechanical formula or statistical equation (such as multiple regression) are used to combine systematically derived information about job applicants. Despite this research evidence, however, both managers and applicants tend to resist use of mechanical selection decisions. Managers often resist change, and tend to feel threatened if they are asked to used formulas or statistical methods for making selection decisions, rather than relying on their own judgment. They also like to feel they have control over the process, and have confidence in their own intuition. Applicants often also dislike mechanical selection methods, and may feel the need for the human touch. So an applicant who is refused an interview and rejected solely on the basis of mechanical methods may feel disaffected. Gatewood et al. (2008) do concede that elaborate mechanical procedures and use of statistical methods for selection decision-making may be impractical for small businesses, which lack the resources for such sophistication.

Recruitment and Selection Preparation

95

However, they argue that in this case, at least small businesses should use an approach which is systematic, and where decision-makers have thought out what weightings should be attached to different attributes of job applicants. Also, selection decisions should always be made using procedural fairness so that their decisions have face validity in the eyes of applicants. An important factor in procedural fairness is that selection decisions can be justified, and applicants believe they have been fairly treated even though they were not successful. In this respect, more objective procedures are obviously easier to justify than subjective procedures, for example, relying on qualifications and experience rather than perceived personality traits. Two recent films about professional baseball in the United States provide interesting contrasting anecdotal evidence about the respective virtues of mechanical and judgmental approaches to decision making in recruitment and selection. The first film is Moneyball (2011), a biographical sports drama. The film is based on Michael Lewis (2003) book of the same name, which is an autobiographical account of the Oakland Athletics baseball team’s 2002 season and the attempts by their general manager, Billy Beane, (played by Brad Pitt), to assemble a competitive team. In the film, Beane is faced with a situation where the club’s finances are such that it cannot recruit big-name ‘stars’ to play for the team. Beane decides to recruit a young Yale economics graduate, Peter Brand (played by Jonas Hill), with radical ideas about how to assess players’ value. Brand espouses a sophisticated statistical (known as sabermetric) system for recruiting talent. Rather than relying on the intuition and experience of football scouts, the traditional method of recruiting players, Brand uses a purely statistical method of identifying undervalued players who have been ignored by other clubs and can be recruited relatively cheaply to play for the Oakland club. Beane and Brand have to face strong opposition from other members of the Club’s recruitment committee, but they select a team based on Brand’s methods. While initially unsuccessful, the team, after losing a number of games, starts to perform and ultimately comes closing to winning their League. Beane is later offered a $12.5 million contract by the elite Red Sox club, which now recognises the merit of the sabermetric system. He declines and continues to manage the now successful and profitable Oakland team, but two years later the Red Sox win their first World Series using the sabermetric system. By contrast, another baseball movie Trouble with the Curve (2012) portrays an ageing baseball scout, Gus (played by Clint Eastwood), who is out of touch with modern methods of selection. A much younger man employed by the club argues the case for drafting promising baseball players purely on the basis of statistics of their recent performance in major games. Gus is sent out on what is expected to be his last assignment to evaluate a promising prospect, a young baseball batter. Despite failing eyesight, he is able to detect that the prospect is unable to hit curve balls, based on his experience in the field. His daughter, who accompanies him, discovers a very promising young pitcher, who is skilled in pitching curve balls.

96

Stanley Petzall

His club ignores his recommendation and selects the batter, based on his statistical record. However, when the newly discovered pitcher pitches curve balls to the batter, he is unable to hit them. The statistician is fired, and Gus is offered another contract! The message from this film is that there is still a place for intuition and judgment, based on personal experience, which yields better results than the purely statistical approach.

3.16.

The Use and Role of Consultants

Executive search has been defined as ‘a systematic, proactive approach to obtaining employees for particular positions’ (Compton et al., 2009, p. 66). Search firms are used to recruit senior managers and professionals with rare or highly specialised skills. They are commonly known as ‘headhunters’. Use of search consultants is chosen in the following circumstances: • Personnel with the required skills and experience are not known to be looking for a changes in jobs • There is only a limited number of people available with the necessary skills and qualifications • The greatest possible amount of confidentiality is required (Stone, 2008) Executive search differs from the normal recruitment process using advertising in various ways. Prospective candidates do not have to apply for positions; they are instead approached directly by a search consultant acting on behalf of the potential employer. A logical and systematic approach is used by the search consultant, often using the services of a team of research analysts. The identities of clients are also not revealed until the process is well under way. The internet may also be used to build up a database of suitable candidates (Compton et al., 2009). The typical executive search process involves the following steps: (1) An initial client meeting is held to identify the client’s needs; this stage may involve interviews with directors, line managers and the HR manager to draft a comprehensive position description to ensure the client’s needs will be met. (2) The proposed methods, targets, timing and fees are settled. (3) A systematic search is conducted; at this stage, a field of candidates is identified, background research on candidates is done and suitable candidates sounded out. (4) Potential candidates are short-listed, references are checked, confidential reports are prepared and unsuitable candidates are rejected. (5) Details of candidates who have been identified and are interested in working for the client are presented to the client and interviews between short-listed candidates and the clients are arranged. This is often the most delicate stage in the process.

Recruitment and Selection Preparation

97

(6) Assistance is provided with offer negotiations and follow-up (Compton et al., 2009; Stone, 2008). The advantages of using search consultants include: • The time saved in identifying, screening and interviewing candidates • Preservation of confidentiality both of the client and of the candidate, who is given time to research the organisation, examine details of the position and then decide whether to allow his/her name to be put forward • The specialist expertise of the search firm in recruitment of the desired staff • The reputation of some consultants, which may induce high-quality candidates to allow their names to be put forward (Stone, 2008) Ideally, use of consultants should result in identifying a better-quality pool of candidates, and selection of top calibre staff, superior to those who would have been chosen by direct advertising (Compton et al., 2009). However, use of search firms is expensive. Fees typically total 25% 40% of total remuneration. Also, the performance of some consultants is questionable and conflicts of interest in terms of raiding candidates from other clients may also occur. Critics have claimed that searches are only about 60% effective, and that 40% 50% of time, money and effort expended in an executive search may be wasted. Nevertheless, in spite of these criticisms, executive search is firmly established and indeed booming as multinationals expand into Asia. However, cultural factors may also make it difficult to recruit senior staff by this means in Asia (Stone, 2008, p. 217). Stone suggests that in choosing an executive search firm, the client should examine the following issues to ensure the firm will get what it wants and the search firm’s conduct will be professional: • How is the fee structured? What will be included and will expenses be charged for separately. Will an itemised account be provided? • What will the client get for its money in terms of industrial sectors, geography or countries covered? • Time-scale — when can the client expect to see the short-listed candidates and how many are there likely to be? • Are any conflicts of interest likely in respect of other clients of the search firm? • How many consultants will be working for the client and what will be their respective duties? • What if no candidate considered suitable by the client firm is found? • Does the search firm have an ‘off-limits’ rule that it will not seek to poach its own placements? If not, is there a time limit on off-limits? (Stone, 2008)

3.17.

Summary

In this chapter, we examined methods of constructing jobs and roles within an organisation so as to allow the organisation to achieve its strategic objectives.

98

Stanley Petzall

The chapter began with an examination of the process of job analysis, leading to the creation of job descriptions, job specifications and job design. Job descriptions focus on the duties to be performed, position responsibilities and the conditions under which the job is done. Job specifications, on the other hand, focus on qualifications, experience, skills, abilities, knowledge and personal qualities required by suitable job holders. Job design involves the way work is arranged, tasks are allocated among workers, and methods are determined for how the job is to be done. Some of the issues involved in drawing up job descriptions and person specifications were examined. Some critics have argued that job descriptions are increasingly becoming archaic because of rapid organisational change and an increasing emphasis on project work. Such critics argue that job descriptions are too rigid and are at best snapshots frozen at a moment in time. They suggest that person specifications and description of the job context are more dynamic and better enable organisations to fulfil their strategic objectives. However, on the other hand, it has been argued that job descriptions are still necessary because of EEO requirements, industrial relations realities, management needs and organisational inertia. In any event, both job descriptions and personal specifications need to be as precise as possible, so as to ensure hiring of the most suitable available staff and to avoid industrial relations disputes where job requirements are too vaguely stated. In relation to job design and redesign, we emphasised the importance of welldesigned jobs to promote efficiency and achievement of strategic organisational objectives, as well as maximising employee job satisfaction. Different approaches to job design were examined, in the light of contemporary motivational theories. Four major approaches were discussed, job simplification, job enlargement, job rotation and job enrichment. While each of these approaches has advantages and disadvantages, job enrichment comes closest to implementing the principles of modern motivational theory. Recent trends with significant implications for job redesign were examined, including the requirements of workplace relations legislation, the demand for more flexible working practices by both employers and employees, developments in communications technology, making remote working more feasible, and issues of globalisation. The movement towards competency profiling was considered placing emphasis on skills and behaviour needed to perform jobs successfully, as an alternative method of job analysis. While there have been criticisms of the concept of competencies, supporters of the competency model argue that the technique better identifies occupational requirements and facilitates the achievement of organisational strategic objectives. However, where this approach is used, competencies must be valid and clearly job-related, otherwise organisations may court legal challenges to their recruitment and selection practices. The advantages of internal and external methods of recruitment were then examined. Some organisations, particularly larger ones, have chosen to develop internal labour markets, for the purpose of recouping training costs and reducing turnover as well as reducing transaction costs associated with recruitment of skilled labour.

Recruitment and Selection Preparation

99

The advantages and disadvantages of internal and external methods of recruitment and selection were considered. The main advantages of internal recruitment are that employees are familiar with the organisational culture and are a known quantity. On the other hand, the main advantages of external recruitment are bringing in new blood into the organisation, particularly where major change is occurring. Some organisations use a mixture of internal and external recruitment, to balance the advantages and disadvantages of each method. Next, sources of recruitment were considered. We firstly looked briefly at nontraditional sources, including employee referrals, unions and educational institutions. Each of these has certain advantages, but also poses some problems. The main focus, however, was on advertising. use of traditional media in the form of newspapers, specialist journals and radio and TV was discussed. Each of these media may be used effectively in certain circumstances to target particular occupations and types of employees. E-recruiting and use of the internet were also considered. The most effective strategies for advertising through these new media, and identified target groups who may be reached by e-recruiting were examined. However, whichever medium is used, the principles of AIDA (attention, interest, desire and action) should be observed for effective advertising. Regardless of the method of recruitment, realistic job preview has been shown to be important in reducing turnover and increasing employee satisfaction. Some of the research evidence was considered about realistic job previews, including the timing at which information should be provided. Once suitable employees have been recruited, it is important to retain them as long as possible because of the high costs of turnover. Consideration was given to a range of strategies to improve employee retention, including suitable remuneration policies, and provision of employee benefits such as flexible working hours, provision of child care, EAPs, and preventive health programs. The importance of a ‘cafeteria’ approach was stressed, offering a range of benefits to appeal to different employee needs. Attention then turned to issues of training. HCT and how it applies to training in organisations was examined. While it has been difficult to establish a link between training and productivity, neo-human capital theory argues that where technological change is involved, which affects most organisations, training does improve employee productivity, particularly where teamwork is involved. Next, decision-making in relation to recruitment and selection was discussed. Comparisons were made and contrasts drawn between mechanical (e.g. use of statistics) or objective methods with judgmental or subjective methods. Research clearly indicates the superiority of mechanical over judgmental methods, though many managers still prefer to use intuition or gut-instinct. The chapter concluded with a brief examination of the use and role of search consultants, particularly for recruitment of executive and professional employees. Once again, there are both benefits and drawbacks in the use of consultants. The main benefit is that consultants may be able to reach candidates who could not be accessed by other means. The main drawback is the cost involved.

100

3.18.

Stanley Petzall

Review Questions

1. Define the term job analysis. Describe four techniques of job analysis. 2. Compare and contrast job descriptions and job specifications. Are job descriptions still necessary? 3. What is involved in job design? Discuss and evaluate four approaches to job design. 4. What are job competencies? What are the advantages of using job competencies in recruitment and selection? What are the weaknesses of the job competency approach? 5. Discuss the advantages and disadvantages of internal and external recruitment and selection. 6. What are non-traditional sources of recruitment? Why may organisations prefer to use these sources? 7. List the different forms of advertising. What are the characteristics of effective advertising? What are the advantages and disadvantages of different forms of advertising? 8. Why is realistic job preview important? 9. What are the advantages of e-recruitment and use of the internet to advertise job vacancies? Discuss the most effective use of the internet. 10. Outline and evaluate the various retention strategies which an organisation may use to retain staff once they have been recruited. 11. What is human capital theory? What is its relevance to training in organisations? 12. Distinguish between mechanical or objective and subjective or intuitive forms of decision-making. Why are mechanical and objective methods of decisionmaking generally superior to subjective or intuitive forms of decision-making? 13. Why do organisations use external consultants in recruitment and selection of staff? What are the advantages and disadvantages of using consultants?

Chapter 4

Communication, Interviews, Questions and Body Language Stanley Petzall

Chapter Learning Objectives After reading this chapter and understanding the review questions and case studies you will: • Be able to consider any cultural issues for the organisation and applicants • Understand the differences between competent professional recruitment and selection staff compared with unskilled staff and interviewers • Be able to determine appropriate questions and question techniques for use in interviews • Be able to understand issues relating to the strategic direction of the organisation and its applicants

4.1.

Communicating with Potential Applicants

A basic model for communication will be outlined, followed by a discussion of cultural considerations in communicating with potential applicants. Communication is derived from a Latin word ‘communis’ meaning common. Thus effective communication involves a common understanding between the communicator (person doing the communication) and the receiver (person hearing or seeing the communication). Here communication is defined as ‘the transmission of information or understanding through the use of common symbols from one person or group to another’ (Ivancevich, Konopaske, & Matteson, 2005, p. 422). A basic model for interpersonal communication was developed by Shannon and Weaver (1948). This model has been widely used and describes the different elements involved in communication.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

102

Stanley Petzall

These are: (1) The communicator or sender — This is the person originating the communication. (2) Encoding — This is the process whereby the communicator’s ideas are translated into a systematic set of symbols. The function of encoding is to send a message containing ideas and purposes. (3) Messages — Messages may be verbal and/or non-verbal. Verbal messages are those which are explicitly spoken. Non-verbal messages are conveyed by body language or gestures. Sometimes what is left unsaid is as significant as what is said. The medium is the channel through which the message is sent. It may be spoken, face-to-face or written as in a memo, letter or e-mail. Feedback is desirable in effective communication. It is a mechanism for checking understanding. One-way communication does not allow for feedback. Two-way conversation is necessary for there to be effective feedback. This enables the sender to check that his/her message has been correctly received and understood. (4) Receiver-decoding — The communication is completed when it is decoded or interpreted by the receiver. Decoding is based on the previous experience of the receiver and the frame of reference used in the decoding. Communication is most effective to the extent that decoding of the message is close to the intention of the communicator. Noise can occur at any point in the communication process. Noise describes any interruption or distortion of the message. Non-verbal communications may occur during face-to-face discussions between senders and receivers. The main emphasis of recent research into non-verbal communication has been on the physical cues which characterise the communicator’s physical presentation. This include: movements of the head, face and eyes, posture, physical distance, gestures, tone of voice and choice of clothing. Non-verbal communication may be unintentional and expressive of emotions or conscious and deliberate. Sometimes body language can also be ambiguous and may convey different meanings to different people. Where verbal and non-verbal communication conflict, the observer (receiver) is more likely to believe the non-verbal than the verbal communication (Ivancevich et al., 2005; Robbins et al., 2011). Thus, for example, in an employment interview, an interviewer may say to the applicant: ‘You seem to be suitable for the job.’ However, if the interviewer frowns as (s)he says this or raises his/her eyebrows, the opposite meaning may be conveyed to the interviewee. Obviously there are many possible problems of ‘noise’ or distortions occurring in the communication process, even when those communicating belong to the same culture. Such problems are multiplied when cross-cultural issues enter the communication process.

Communication, Interviews, Questions and Body Language 4.1.1.

103

Cultural Considerations

Increasingly, business is being conducted across national boundaries, and multinational companies have operations in many countries. For example, Australia has one of the most multicultural workforces in the world. Thus, cultural considerations become significant as organisations have to deal with job applicants from different cultures and countries. Also, when organisations set out to establish subsidiaries overseas, issues may arise in respect of cultural differences between home and host countries. It has been suggested that communication can be divided into several culturally determined parts: words, space, time and behaviour. Within each of these spheres, there are challenges to cross-cultural communication (Ivancevich et al., 2005). Each of these will be considered in turn. Words While English has become accepted as the universal business language, and many non-native speakers have learned to do business in English, most of the world’s population still does not speak English. And, of course, there may still be cultural problems of communication between native and non-native speakers of English depending on the respective countries of origin. Numerous problems have been found in respect of translation from one language to another, but these are not relevant for present purposes. But when a non-native speaker is dealing with a native speaker, usage of words may create confusion. For example, when a Japanese says ‘yes’ in a conversation with an English speaker, he may mean, ‘yes, I am listening’ rather than ‘yes, I agree.’ The word ‘Hai’ in Japanese means ‘yes, I am listening.’ Space Each culture has its own perception of personal space. For example, Anglo-Saxons have a larger conception of what constitutes their personal space than Arabs. So, discomfort may occur when an Arab approaches an Anglo-Saxon too closely in conversation, invading the Anglo-Saxon’s perceived personal space. The Arab may consider this a friendly gesture, the Anglo-Saxon may not. Also, in some cultures, it is normal for men to embrace and touch each other, while in others this is confined to family members. Male Anglo-Saxons are inhibited about embracing and touching each other, while Latins such as French or Italians consider this normal. Thus, an Anglo-Saxon interviewer should not be too shocked if a Latin applicant seeks to embrace him following a successful job interview! Time In cultures such as Asian, the Middle Eastern and Latin American, time is viewed as polychronic. In polychronic cultures, people are used to doing many things at once and accept interruptions to their activities as normal. They are also committed

104

Stanley Petzall

to human relationships rather than formal contracts, changing plans often and base promptness on the closeness of a relationship. Those from monochronic cultures, on the other hand, which includes AngloSaxon culture, are used to doing one thing at a time, taking time commitments seriously and valuing punctuality, following rules of privacy and showing respect for private property (Ivancevich et al., 2005). So, in the case of job applications, if a person from a polychronic culture shows up late for his/her interview, allowances may have to be made, with perhaps an explanation that, in future, punctuality is important within the Anglo-Saxon culture. In terms of non-verbal communication, it is well-known that there are significant cultural differences in respect of gestures and body language. Thus, for example, nodding one’s head up and down means ‘yes’ in Anglo-Saxon culture, while shaking it from side to side means ‘no’. However, in some non-Anglo-Saxon countries, each of these gestures means the reverse of what it means in the Anglo-Saxon country (Ivancevich et al., 2005, p. 433). In some cultures, such as Asian culture, sustained eye contact is considered impolite. In Anglo-Saxon culture, on the other hand, it is considered shifty not to maintain direct eye contact in conversation (Ivancevich et al., 2005). In each of the latter two examples, there is clearly rich potential for misunderstanding for those from different cultures, which could manifest themselves in an employment interview with disastrous results. Finally, cultures have been divided into high-context and low-context. In highcontext cultures, there is a heavy reliance on non-verbal and subtle situational cues. In such cultures, a person’s official status, place in society and reputation are very important. What is not said may be more significant than what is said. Examples of such cultures are Chinese, Korean, Japanese and Vietnamese. In low-context cultures, on the other hand, reliance is mainly placed on spoken and written words to convey meaning. Body language and formal titles are secondary. This is true of Anglo-Saxon and many European countries (Robbins et al., 2011). Markus and Kitayama (1991) draw another broad distinction between western and non-western culture, which may be helpful in understanding cultural differences in relation to hiring practices. The authors point out that western culture promotes the need to be liberated, private, unique, to express oneself, promote one’s own goals, be assertive and so on. By contrast, people in the East have a different concept of self, which is essentially about being connected to the social context, being flexible, fitting in, occupying one’s proper place, promoting others’ goals adjusting oneself to others, exercising restraint and not expressing one’s feelings openly. Markus and Kitayama (1991, p. 224) point out the two common expressions used in the United States and Japan which neatly encapsulate differences in their respective national cultures. In the United States, it is said that: ‘the squeaky wheel gets the grease.’ In Japan, on the other hand, it is said that: ‘the nail that stands out gets pounded down.’ So in American culture, one should speak out assertively in order to get attention and action. In Japan, on the other hand, one should not seek to stand out from one’s group, and assertive behaviour is frowned upon.

Communication, Interviews, Questions and Body Language

105

Thus, if a western manager is interviewing a national from a country like China or Japan for a job, there is much potential for misunderstanding if these differences are not appreciated. A Chinese or Japanese national may be seen as lacking in confidence or being evasive where they are merely being polite and behaving in accordance with their cultural norms. Similarly, if an Australian is being interviewed for a job in, say, Japan, what may seem like plain-speaking directness to the Australian could be construed as rudeness by the Japanese interviewer. Hofstede and Hofstede (2005) in their well-known work on national cultural differences raise another interesting issue which may have direct relevance to employment interviews. They argue that there are four primary dimensions which differentiate national cultures, power distance, uncertainty avoidance, individualism/collectivism and masculinity/femininity. Power distance measures the extent to which a society accepts the unequal distribution of power in institutions and organizations. Uncertainty avoidance is a measure of the extent to which a society feels threatened by uncertain and ambiguous situations and tries in various ways to avoid these situations, for example, by having more formal rules. Individualist societies are those where the social framework is loosely knit, and people are supposed to take care of themselves and their immediate family members only. In a collectivist society, on the other hand, there is a tight social framework where loyalty to the group (whether relatives, clan or organization) is paramount and the individual is subordinated to the group, which in turn looks after the individual. Masculinity is a measure of concern for material things by way of acquisition of money and things. Femininity, on the other hand, is a measure of the extent to which a society values the quality of life over the acquisition of material things. The Hofstedes make a comparison of American and Dutch culture in relation to the ways in which people from each of these cultures write CVs for employment interviews. According to them, American job applicants write CVs in which they use superlatives, exaggerate their achievements and generally oversell themselves. In the course of interviews, they also tend to behave aggressively, promising to do the impossible, such as learning the local language in a matter of a few months. On the other hand, Dutch applicants tend to write modest and short CVs and generally undersell themselves. They are careful not to make promises they know they cannot keep and consciously try to avoid bragging about their achievements (Hofstede & Hofstede, 2005). They go on to say that American interviewers, understanding their own culture, know how to interpret the information provided. They, therefore, tend to discount some of the claims made in CVs by American job-seekers. Dutch interviewers, on the other hand, also understanding their own national culture, tend to upgrade the information provided by Dutch job-seekers. However, to the uninitiated, there is much scope for cross-cultural misunderstandings. ‘To an uninitiated American interviewer, an uninitiated Dutch applicant comes across as a sucker. To an uninitiated Dutch interviewer, an uninitiated American applicant comes across as a braggart’ (Hofstede & Hofstede, 2005, p. 116). The basis for these cultural differences, according to Hofstede and Hofstede (2005), is that while both cultures are reasonably similar on the dimensions of

106

Stanley Petzall

power distance and individualism, they differ considerably on the dimension of masculinity/femininity. While American culture is strongly masculine, Dutch culture is more feminine. These differences manifest themselves in the degree of assertiveness shown by job applicants versus the degree of modesty. Americans tend to be very assertive, while the Dutch are relatively modest. Hofstede and Hofstede’ work offers many valuable insights into national cultural differences, and managers can benefit from knowledge of it to reduce ethnocentric tendencies in many areas, including recruitment and selection. While it is impossible for an individual to know all the nuances of cultural differences between different nationalities, Ivancevich et al. (2005) suggest there are three rules for successful multicultural communication: (1) One should seek to familiarise oneself with known significant cultural differences when dealing with persons from different cultures. (2) One should make a conscious effort to put aside ethnocentric tendencies, or the assumption that one’s own culture is superior to all others. (3) Being aware that one may not be familiar with the nuances of other cultures, one should assume that one’s understanding is incomplete unless otherwise demonstrated. The increasing impact of globalisation has led to many organisations instituting cross-cultural training and development (CCTD) as well. In the past, CCTD was largely directed at preparing domestic employees for overseas assignments. However, more recently the focus has changed to emphasis on a more holistic development of employees in different locations to enable them to interact successfully with individuals from diverse cultural backgrounds and to be able to work within multicultural teams (Haertel & Fujimoto, 2010).

4.2.

International Recruitment and Selection

In an era of globalisation, a key responsibility of HRM in multinational organisations is to select competent and qualified staff for overseas operations. Many Australian organisations have now developed into multinationals. Examples include BHP-Billiton and Boral. According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report of 2002, MNCs now account for a total of over 73 million jobs worldwide, and represent about 3% of the world’s total labour force (Petzall, Abbott, & Timo, 2007, p. 324). Most positions in foreign subsidiaries of MNCs are filled by local citizens of the host country (also known as local nationals). There are a number of reasons for this: • It is cheaper to employ local nationals i.e. citizens of the host country, than to bring in expatriates, either from the home country or a third country

Communication, Interviews, Questions and Body Language

107

• There are frequently restrictions or even prohibitions on hiring of expatriates in the host country • Local staff are more familiar with their own business environment (Stone, 2008) However, expatriates are often brought in to fill management roles. Research has indicated that MNCs are diverse in their approach to management and staffing. Three types of strategy have been distinguished: Ethnocentricity, polycentricity and geocentricity Ethnocentric enterprises are wholly owned and managed by managers in the host country and are treated as direct extensions of the parent company. Polycentric enterprises recruit managers from local nationals and there may even be local participation in ownership. Geocentric enterprises have a management structure transcending national boundaries. The most qualified and effective managers may be sent from any country to any others, regardless of nationality. Thus, a Brazilian may be recruited to manage a French subsidiary operating in Singapore. Research shows that European and American companies tend to apply polycentric staffing policies, while Japanese companies are ethnocentric in their staffing policies (Petzall et al., 2007). Where expatriate managers are employed, this usually occurs for one of the following reasons: • A new venture is being established in an overseas location • The company sees international assignments as important to the development of high achieving executives • Local staff lack the necessary management or technological expertise • The parent company in the home country wants a high degree of control • The business venture is of a short-term nature • The company wishes to protect highly specialised technological know-how • It may create social, racial, religious and/or political problems if locals are appointed • Strategically the parent company wishes to be seen as a foreign enterprise • Local employees are nationalistic and subject to host country government control and influence, whereas an expatriate manager will be more independent and responsive to head office control • Head office management prefers to deal with someone they know well (Stone, 2008)

4.3.

Interviews

4.3.1.

The Role and Purpose of Interviews

The interview is one of the most widely used and popular selection techniques. It usually takes the form of a face-to-face meeting between the employer or an agent

108

Stanley Petzall

of the employer, such as the HR manager, and the applicant. Sometimes the employer appoints a panel of interviewers, particularly if the appointment is a highlevel and important one. This may also contribute to increased reliability of the interview (see below). However, interviews may also be conducted remotely by telephone, Skype or video link. Face-to-face interviews are obviously preferable as they enable each party to observe non-verbal well as verbal communication. The purpose of the interview is to enable the employer to obtain and assess job-related information about the applicant or to obtain further information if an application form has already been filled in. From the applicant’s perspective, it is an opportunity to learn more about the job and the organisation. It should never be forgotten that the interview should be a two-way process, and the rules of communication discussed above should be applied. In a face-to-face situation, an employer is also able to gain an impression about the personality, appearance and manner of the applicants, an impression which cannot be obtained from an application form. Ideally, the interview may be used to obtain a representative sample of the applicant’s job-related behaviour and to make some assessment of technical competence. For example, it is not uncommon for applicants for a lecturing job to be asked to make a brief presentation to an interview panel (Compton et al., 2009; Stone, 2008).

4.3.2.

Reliability and Validity

Like any other selection methods, interviews will only be useful if they are both reliable and valid. Reliability essentially means there is consistency in the selection of individuals. In the case of a psychological test, reliability would be measured by whether a candidate who undertakes the test at two different times records much the same result (Newell, 2005). In the case of interviews, reliability can be measured in one of two ways. If a candidate is interviewed twice, as sometimes happens, their suitability for the position should be similarly ranked on the first and second interviews, all other things being equal. Alternatively, two or more individuals may conduct the interview (a panel interview). If their rankings of the candidate are essentially similar, the interview may be judged as reliable. Validity, on the other hand, is a measure of whether a method of selection can predict what it claims to predict. So, in the case of an interview, it must discriminate between candidates. Those presumed to be ‘good’ in the job, must subsequently perform well, while those predicted to be poor should perform less well (of course, in practice, ‘poor’ candidates should not be appointed, unless no others are available!) (Newell, 2005). If interviews lack either reliability or validity they will be an unsuitable selection technique. In practice, there are many criticisms of interviews which suggest that, in fact, they do often lack reliability or validity (see below).

Communication, Interviews, Questions and Body Language 4.3.3.

109

Types of Interviews

Interviews may be classified into different types, which are appropriate for different situations. The first type is the structured interview. This type of interview uses a predetermined outline, with a specified list of questions. Typically, the structure might be based on the selection criteria, and may include questions about work history (including previous experience, duties and responsibilities), education and training (including qualifications, subjects and grades obtained at university — if relevant — and courses attended) and personality, motivation and character. According to Heneman and Judge (2003) the structured interview has numerous hallmarks. The most important are: • • • • •

Questions are based on job analysis Each candidate is asked the same questions Responses to questions are numerically evaluated Detailed anchored rating scales are used to score each response Detailed notes are taken which focus on interviewees’ behaviours

Structured interviews should focus more on skills and abilities, since job knowledge is best tested by other methods such as the written ability or job knowledge test or specific training and experience requirements. The skills and abilities which the structured interview is best able to assess are probably verbal, interpersonal adaptability and flexibility, skills and abilities. Heneman and Judge (2003) suggest that there are two main types of structured interviews: situational-based and experience-based. Situational interviews are used to assess the ability of an applicant to project what his or her behaviour might be in a future hypothetical situation. The underlying assumption is that the goals which applicants set for themselves are good predictors of what they would do in the future. The other type of interview is the experience-based or job-related interview. These try to assess past behaviours linked to the prospective job. The major difference between these two types of structured interview is that the situational interview is future-oriented, while the experience-based or job-related interview is based on past behaviour. Both have been shown to have high validity and reliability, and there are no clear guidelines as to when one should be preferred over the other. However, experience-based interviews are only relevant for individuals who have had significant job experience. Some interview formats try to strike a balance between past- and future-oriented questions, which may be the most useful way forward. The main advantage of the structured interview is consistency, especially where large numbers of applicants are being interviewed. It may also be fairer, inasmuch as all applicants have to answer the same questions, and have an equal chance to perform. It may also be most efficient in terms of time and easiest for an inexperienced interviewer to conduct. In addition, a meta-analysis of research into the

110

Stanley Petzall

validity of structured interviews shows that results have been found to be more accurate (McDaniel, Whetzel, Schmidt, & Maurer, 1994). However, Heneman and Judge (2003) do question whether structured interviews based on the traditional criteria of knowledge, skills, abilities and other characteristics (KSAOs) are inadequate because they fail to examine issues such as goals of applicants, their values and their interpersonal skills. As they point out, effective job performance includes intangibles, such as employee citizenship behaviour, including being helpful to fellow employees, reliable, pleasant and compatible with the employee team. They argue that if, in some way, the interview could be structured to include questions about employee citizenship behaviours, it would enjoy still greater validity. Nevertheless, in practice, the chief disadvantage of the structured interview is its inflexibility. It may result in superficial assessment of applicants, and fail to allow them to provide significant responses because further investigation and questioning based on applicant responses are ruled out. Nevertheless, the disadvantage may be overcome by using the predetermined questions only as a guide and permitting deviation where this seems necessary or justified. But this would rely on the experience of the interviewer to use appropriate discretion. Other problems include excessive domination of the interview by the interviewer making the applicant feel unable to express himself or herself sufficiently. It appears that use of structured interviews is also culturally conditioned. Research shows that use of structured interviews is favoured in Britain, Scandinavia, Austria and Spain (Compton et al., 2009). Just why structured interviews are more favoured in the above countries, however, is not clear. The opposite of the structured interview is the unstructured interview. The characteristics of the unstructured interview are that it uses few if any planned questions, and enables the interviewer to pursue applicants’ responses in depth. The advantages of this type of interview are that it makes applicants feel more relaxed and may therefore elicit more natural responses and representative samples of their behaviour. Characteristics of the unstructured interview include the following: • It is relatively unplanned • Rather than being based on the strict requirements of the job, questions are often based on interviewer ‘hunches’ or ‘pet questions’ intended to psychologically diagnose applicants’ suitability • Questions tend to be casual, open-ended and subjective (e.g. ‘tell me a bit about yourself’) • Questions may be highly speculative (e.g. ‘Where do you see yourself 10 years from now?’) • The interviewer is often unprepared • The interviewer often makes a premature evaluation of the candidate in the first few minutes of the interview (Heneman & Judge, 2003)

Communication, Interviews, Questions and Body Language

111

Problems include lack of control over the interview by the interviewer, who may allow the interview to get too far off track, and the danger that irrelevancies will be discussed and important issues missed. The unstructured interview also requires a more skilled interviewer, and it is more difficult to compare responses of different applicants. Also, poor recall by interviewers tends to plague unstructured interviews (Heneman & Judge, 2003). The latter problem is probably caused by the fact that it is more difficult for the interviewer to make notes in view of the unstructured nature of the interview. This deficiency could be remedied by having a panel interview, (see below) where one member of the panel can take notes while others ask questions. Research shows that unstructured interviews are favoured in countries such as the United States and Australia (Compton et al., 2009; Stone, 2008). Once again, it is not clear why the unstructured interview is preferred in these two countries. Gatewood et al. (2008) do point out that the dichotomy posed in the literature between structured and unstructured interviews may be simplistic, as, in reality, there is a continuum ranging from highly structured to highly unstructured and interviews may therefore contain both structured and unstructured elements. Other types of interview include the panel interview, the stress interview and the group interview. Each of these may be structured or unstructured. The panel interview is often used by large organisations. Typically the panel is comprised of 2 5 persons, drawn from different functional areas and including the HR manager or officer. To be effective, members of the panel need to reach prior agreement about which questions each will ask and the role each will play in the interview. The advantage of this type of interview is that it is likely to be more impartial and reliable (see discussion of reliability above) as it requires a consensus among the panel members. Also, having more members on the panel enables them to scrutinize the applicant more closely, and one person may pick up something significant, which others miss. Where this type of interview is held, it is desirable that an interview panel meeting be held before the interview with the following objectives: • Developing a common understanding of what the organisation is looking for in a successful candidate • Getting to know the candidates better through a thorough knowledge of their profiles • Identifying areas where probing questions may be asked • Synchronising the efforts of interviewers, with an assigned role and area for questioning for each interviewer The disadvantages include greater cost and making applicants feel intimidated and therefore put off their natural responses to questions. This type of interview may favour more confident and extroverted applicants (which may not suit the position requirements). Also, the one-to-one interview is more likely to allow a rapport to be established between the interviewer and the applicant. The more interviewers are present, the more likely is it that the interviewee will feel overwhelmed or beleaguered.

112

Stanley Petzall

The stress interview may be used to find out how an applicant would react if placed in a stress situation in the job. This involves the interviewer suddenly adopting a more hostile stance and belittling the applicant’s achievements or questioning their character and motives. The responses of the applicant are noted, and the interview may then become more relaxed again. The disadvantages of the stress interview are that it obviously requires a very experienced interviewer to carry it off successfully, and risks the applicant being put off and terminating the interview prematurely. Therefore, stress interviews are rarely used, but most typically for positions in the military or diplomatic service and then usually only at a second or third interview (Compton et al., 2009).

4.3.4.

Group Interviews

Group interviews are often used in an assessment centre approach to recruitment. Several individuals are brought together to discuss a given problem or a topic of their own choice. They are not directly interviewed, but observers are present to assess the applicants. This may be useful for assessing competencies, such as leadership, adaptability, problem-solving skills and HR skills. This approach can be useful in recruitment and selection of managers or other positions where verbal skills and interpersonal relations are important (e.g. public relations). However, the disadvantage is the expense in terms of time and effort and the need to carefully identify which competencies are required in a position and how to assess the qualities of applicants (Compton et al., 2009).

4.3.5.

Peer Interviews

Some organisations also use peer interviews, where co-workers interview the candidate. This may be done as a second interview, following the main interview. The advantage is that co-workers get an opportunity to assess whether they can work with the candidate, while the candidate is able to make a similar assessment about potential co-workers. Feedback can then be given to the main interviewer or panel about the perceived suitability of the candidate.

4.3.6.

Referral Interviews

Many organizations rely upon employee referrals to fill some positions. Where this is the case, some companies have instituted a practice where the referring employee conducts the first round of interviews. The advantage of this is that the candidate gets an opportunity to familiarise himself or herself with the company and the job from an insider and a trusted contact. A more formal second interview is then conducted in the normal way for management to assess the suitability of the candidate.

Communication, Interviews, Questions and Body Language 4.3.7.

113

Behavioural Interviews

Another type of interview, which may be particularly relevant to selection of managers, is the behavioural interview. In this type of interview, the emphasis is placed on an individual’s ability to react to situations rather than being based on the more traditional qualifications and experience. The stress interview may be regarded as a special type of behavioural interview. The behavioural interview is based on ‘the assumption that the best predictor of future performance is past performance in similar circumstances’ (Stone, 2008, p. 257). This type of interview is characterised by open-ended questions relating to: • Situations/tasks. For example, what were the circumstances surrounding your decision? Why did you reach that conclusion? Describe a situation in which you had to make an unpopular decision • Action questions: What were first, second and third things you did during a process? Can you take me through the steps you took during a problem-solving process? What was your role in the cost-saving project you mentioned in your application? • Results questions: What sort of feedback did you get from this project? Describe problems you encountered. What success did you have? An interviewer may be able to develop many types of competency, behavioural and job-specific questions to fit each of these points. The level of depth of the questions will be dictated by the nature of the position, job duties and culture of the organization. An applicant who is faced with these types of questions may find them stressful, but can prepare for them by writing down some specific tasks or situations they were involved in, describing in detail what they did and some specific results which they achieved (Whitacre, 2007). Behavioural interviewing has been described as more effective than ‘trait’ interviewing, where preconceptions and first impressions may distort perceptions. Research also indicates that behavioural interviews may be eight times more effective in predicting job performance (Ullah, 2010, p. 107). Around 70% of Fortune 500 companies in the United States use behavioural interviewing in decisions regarding whom to hire. Some American universities are even preparing their students for this type of interview by running training sessions for them (Keever, 2008). However, while research certainly suggests that behavioural interviews have greater validity than unstructured interviews, they are not widely used on account of time and cost constraints (Stone, 2008). 4.3.8.

Interview Environment

The first requirement for a good interview is a suitable environment or physical location for the interview. It is very important to make applicants feel comfortable and

114

Stanley Petzall

at ease as far as possible. This is particularly the case where a number of applicants are being interviewed. The following are important considerations in relation to the interview location: • Reception arrangements should be satisfactory and a waiting room should be available • The interview room should be comfortable, with satisfactory heating, cooling, ventilation and lighting, and the room should be quiet • Seating should be comfortable • Office layout is also important. The traditional arrangement of interviewer and applicant facing each other across a desk can appear somewhat intimidating and even adversarial to many applicants. An ‘L’ shape layout of the furniture may be preferable or a round-table arrangement for a panel interview • If there are disabled applicants, the interview venue should be accessible for them. For example, a room accessible only by steps should be avoided • There should be no interruptions such as telephone calls during the interview These details are important as they give applicants the impression that interviewing is important and individuals matter. They also project an image of the organisation (Compton et al., 2009; Stone, 2008). 4.3.9.

Preparation for Interviews

Before interviews are held, there should be careful selection of candidates to be interviewed. If the wrong candidates are interviewed, the job will not be successfully filled. Typically candidates will have submitted re´sume´s as part of the recruitment process. Some advice for examining re´sume´s, with a view to identifying suitable applicants for interview and sifting out those who are not, includes the following: • Be wary of the ‘functional’ re´sume´, which is too general and supplies no details of duties of employment in previous positions • Sloppiness in respect of misspelled words, or indications that the resume is not an original, are a bad sign • Excessively long re´sume´s often cover up a lack of achievement in previous positions • One should look for a willingness to work hard • The reasons for leaving the last job should be clearly spelt out • Educational background should be weighed and judgment should be suspended in marginal cases, until the time of the interview (Ullah, 2010) 4.3.10. The Interview Process All interviews pass through various stages. Most of the issues involved have been discussed above, but it is worthwhile for interviewers to be aware of the process model. Stages involve:

Communication, Interviews, Questions and Body Language

115

• Opening — At which the interviewer or panel outlines the main issues to be discussed in the interview, and seek to make the applicant feel comfortable • Note-taking — To ensure important points are recorded and a record is available to justify decisions taken later. In a panel interview, in particular, one member can be delegated the task of being the main note-taker, as it may be difficult for all members to take notes and ask questions at the same time • Listening — The role of active listening has been discussed above • Interrupting — While it is generally desirable to allow the candidate to talk freely, where the interview is getting off track, it may be necessary to interrupt to get it on track again • Probing — As discussed above, some points made in the candidate’s resume may need further explanation, as may answers given in the interview • Closing — When the interviewers have asked all their questions, and the candidate has been given an opportunity to talk and ask any relevant questions, the interview should be drawn to a formal close. At this point, candidates who are obviously unsuitable may be tactfully informed that they have not got the job.

4.3.11. Online Hurdles and Computer Interviewing A technological innovation in recent times is the use of the computer to screen job applicants through scanning of their re´sume´s and to conduct preliminary screening interviews and online testing. A well-designed computer interview program can obtain a lot of information quickly and with little cost, especially where a large number of candidates is involved. Advantages which have been claimed include accuracy and consistency. Also, difficult or embarrassing questions can be asked without fear or favour. It is interesting to note that research indicates that candidates answered computer questions more accurately than they did in face-to-face interviews. However, while online hurdles and computer interviewing may be useful screening devices, research indicates that applicants for higher level positions prefer the more personalised face-to-face interview. They also object to personality tests conducted on-line. Further, there are potential problems of faking, privacy issues, security of information, equity and trade union opposition (Stone, 2008, pp. 269 270) The accuracy of high-tech interviews as compared to the face-to-face interview is also unknown (Heneman & Judge, 2003). Stone (2008) concludes that computer interviewing is therefore best suited to lower-level positions.

4.3.12. Body Language and first Impressions Research findings show that many interviewers make judgments about applicants in the first 3 5 minutes of an interview. After this time, their perception becomes selective and they tend to see or hear what confirms their first impressions (Stone, 2008).

116

Stanley Petzall

While this is a fault which should be remedied, it is a fact of life that it occurs, so applicants should be aware of it. Thus, first impressions are often critical to the outcome of the interview. Research suggests that interviewers favour direct eye contact (which may present a cross-cultural problem in the case of say, an Asian applicant), head movement and smiles. Other forms of body language or non-verbal behaviour which are influential include composure, body posture (sitting up straight and not slouching) and personal appearance, including dress, physical attractiveness and the use of grooming aids. There is also research evidence that applicants who are able to use forceful impression management tactics in interviews (at least in the western context) are more successful than those who do not. In particular, use of assertive rather than defensive tactics and self-promotion rather than ingratiation has been found to produce positive results. Not only does the use of impression management tactics favourably influence interviewers’ perceptions of applicant suitability for employment with the organisation, they also make it more likely that applicants will be invited to make site visits (Jelf, 1999). As far as female applicants are concerned, women who wear more masculine clothing, such as dark suits, are judged as being more aggressive, forceful and dynamic and self-reliant than those wearing more feminine apparel, such as pastelcoloured soft dresses (Compton et al., 2009; Stone, 2008). Obese applicants also tend to make an unfavourable impression, especially in the case of females (Stone, 2008). One of the authors recalls an account of an interview for an academic position at his former university. The applicant was an obese male (he might have weighed at least 300 pounds) and a professor who was involved in the selection interview told the author that he instantly decided the applicant was unsuitable because he would convey a negative image of the university to outsiders!

4.3.13. Questions and Questioning Techniques As stated above, the purpose of the interview should be for the interviewer(s) to gain as much information from the applicant as possible. However, the interview is a two-way process, and the applicant should also have the opportunity to ask questions about the job and the organisation. That said, most of the talking should be done by the applicant in response to well thought-out questions. The role of the interviewer is to draw out the applicant. In particular, the interviewer may wish to probe the applicant about information which seems inconsistent, unfavourable or incomplete, with a view to allowing the applicant to do himself or herself justice. There is a rule of thumb, called the 80:20 Rule, according to which the interviewer should only talk 20% of the time, allowing the interviewee to talk for the rest of the 80% for optimum results from the interview. Generally, closed questions which elicit a ‘yes/no’ answer should be avoided (Ullah, 2010, p. 107). A good technique is to pose open-ended questions which encourage applicants to talk; for example, ‘Tell me about your previous job,’ or ‘what are some important contributions that you made in your previous job.’ However, closed

Communication, Interviews, Questions and Body Language

117

questions may be used at the start of an interview to settle the nerves of interviewees before interviewers progress to leading and probe-based questions. Follow-up questions are also important, to ensure the maximum amount of more specific information can be obtained; for example, ‘how much of the contributions were your own?’ or ‘were others also responsible for favourable outcomes?’ The ‘funnelling approach-involving’ questions like ‘what’, ‘when’, ‘where’ or ‘how’ followed by narrowing down with more direct, probing questions is a good technique for eliciting the maximum amount of information. Good interviewers also convey the impression of being attentive and appreciative of what the applicant is saying. Comments such as: ‘That is interesting, tell me more’ or even ‘I see’ or ‘Uh-huh’ encourage the flow of conversation and reassure the applicants that they are saying the right thing. Tactically, changing the type and direction of the questions is quite common; that is, if an interviewee becomes defensive, the interviewer should change the subject matter of the question, only returning to the sensitive question when the interviewee has had a chance to settle down again. However, some types of questions should be avoided. They include leading questions and loaded questions. Leading questions are those that suggest an answer. For example, ‘So you didn’t like being a union official?’ A better way of asking this would be: ‘How did you feel about being a union official?’ This is more likely to encourage a more informative and extended response. Loaded questions are those which make an accusation; for example, ‘Are you still pilfering at the workplace?’ In legal proceedings, questions like this are disqualified, and they also have no place in the job interview. Questions which are allowable, but require thinking through include hypothetical questions. For example, ‘What would you do in this situation?’ However, the situation should be relevant to the nature of the job and the applicant’s previous experience. So, for example, there would be no point in asking a first-year engineering student how he would build a major bridge over the harbour. Negative questions may also have a place but should be used sparingly. For example, ‘Your achievements are impressive, but can you tell me about a time when things did not go so well?’ A good technique is also to ask easier questions first, to establish a relationship and make the candidate feel at ease. This can be followed by more difficult questions. Some other useful guidelines include asking one question at a time, using simple words and avoiding jargon which applicants may not understand. However, of course if the job is highly specialised, for example, a lawyer, then legal jargon might be appropriate. While the interviewer should ask most questions to direct the interview, it is also important that the applicant be allowed enough time to ask his/her questions to maintain the interview as a two-way channel of communication. Interviewers, however, should avoid asking too many questions or talking too much about themselves and telling ‘war stories’ as this defeats the purpose of the interview (Compton et al., 2009, pp. 116 117; Stone, 2008, pp. 260 261).

118

Stanley Petzall

4.3.14. Active Listening Related to the issues of good questioning techniques is active listening. An essential skill of good communication is listening skills. According to Carlopio, Andrewartha, and Armstrong (2005, p. 322), an interviewee is a good listener when he/she: • Is not talking, otherwise (s)he is not listening • Makes eye contact which shows interest and attention • Uses appropriate body language. For example, nodding one’s head to show one is attentive and is following what the applicant is saying • Avoids distracting actions or gestures, indicating boredom, such as reading a book while the interview is in progress (of course the interviewer may consult the applicant’s application form to guide questioning) • Asks questions at appropriate places. This is evidence that the interviewer is really listening and thinking about what is said • Avoids unnecessary interruptions so as to listen to what the applicant is saying • Makes smooth transitions between the roles of listener and speaker. Good listeners don’t rush into speaking immediately the applicant has stopped In addition, Compton et al. (2009) suggest that good interviewers are those who: • Allow applicants to speak freely as far as possible • Allow applicants to elaborate or qualify their answers • Let the applicant do most of the talking. The applicant should be allowed to speak in the ratio of about 80:20 to the interviewer • Pay attention to the tone of answers, as this often indicate their true meaning • Carefully evaluate what is said and ask clarifying questions where necessary and confirm candidates’ verbal responses and their correspondence with body language • Avoid unfavourable reactions by making criticisms or drawing implications. Otherwise applicants may feel they have to censor what they say • Use a pause as a means of encouraging the applicant to elaborate or continue. Should this fail, the applicant may be gently prompted to continue A skilled interviewer should also be watchful in relation to consistency between the verbal responses of interviewees and their body language.

4.3.15. Legal Considerations Certain questions cannot be asked in interviews because they may be discriminatory and contravene EEO guidelines. Any questions which may demonstrate prejudice against an applicant based on their age, sex, religion, physical appearance or sexual orientation are to be avoided. It is also illegal to ask applicants questions about whether they are married, whether they have children or intend to have children

Communication, Interviews, Questions and Body Language

119

(particularly in the case of female applicants). Each Australian state has its own anti-discrimination legislation, and there may also be relevant Commonwealth legislation to be complied with (Compton et al., 2009; Haertel & Fujimoto, 2010). One of the authors had a colleague who applied for a position at a Catholic University. Knowing that the panel was not allowed to ask him whether he was a Catholic, he made a point of mentioning that he had two children and that they were both studying at a Catholic school, to give them the message that he was, indeed, a Catholic. He got the job ahead of an equally or better-qualified nonCatholic candidate! Quite apart from legal considerations, discriminatory questions should also be avoided because they may undermine the trust between the interviewer and the interviewee.

4.3.16. Criticisms of the Interview Process Research has identified a number of problems in the interviewing process, involving various prejudices or preconceptions which may taint the validity or reliability of interviews. These include: • Stereotyping, such as basing decisions on predetermined notions and prejudices such as age, race, sex, nationality or place of residence • Halo effect, which involves rating people according to a person’s likes or dislikes and exaggerating their strengths or weaknesses accordingly • Self-identification or choosing people of a similar type to oneself or those holding similar values to one’s own • Basing decisions on negative data and allowing unfavourable to outweigh favourable information about an applicant (Compton et al., 2009) Other pitfalls in interviewing include: • Evaluating female and older applicants less favourably than others where they constitute less than 25% of those interviewed • Many interviewers tend to follow male and female stereotypes in considering job applicants. Thus, for example, when interviewing for a nursing or secretarial position, the interviewer will tend to give preference to female applicants • There is a tendency for interviewers to evaluate a man who is interviewed after a woman more leniently than in evaluating a woman who follows a man • When a candidate is interviewed immediately after a very good or a very bad candidate, evaluations may be seriously distorted (Heneman & Judge, 2003; Stone, 2008) There is also quite strong research evidence that interviewers’ pre-interview evaluations of applicants tend to be self-fulfilling. Research suggests that interviewers tend to form opinions about interviewees based on their prior knowledge of the

120

Stanley Petzall

interviewees’ qualifications and experience. They then tend to convey their opinions of interviewees in the way in which they conduct the interview. This may be done either verbally or through body language. Furthermore, it is likely that applicants will reciprocate the signals they received from the interviewer, whether these are favourable or unfavourable in terms of their responses and behaviour. Interviewers also tend to notice, recall and interpret information in a manner which is consistent with pre-interview evaluations. In the case of interviewees who make a favourable impression in their applications, interviewers tend to make internal attributions about interviewees’ past successes (e.g. ability and effort put in by the applicant is seen as the cause of success). On the other hand, past failures tend to be attributed to bad luck. Furthermore, decisions made after the interview have been found to be heavily biased towards the pre-interview assessments of candidates. A study by Dipboye (1982) found that as many as 88% of post-interview evaluations could be predicted from pre-interview evaluations based on candidate’s applications. The self-fulfilling tendency discussed above may not always be a bad thing. For instance, it appears that biographical information in the pre-interview phase, based on applicant re´sume´s and completed application forms, can provide the basis for accurate assessment of candidates, and is often highly predictive of subsequent success in the job. However, research does cast some doubt on the value of the interview itself, as so many decisions are based on pre-interview information and evaluations (Dipboye, 1982). This has become known as the self-fulfilling prophecy. Other research has confirmed Dipboye’s concept of the self-fulfilling prophecy. For a review, see Jelf (1999).

4.3.17. Competent Interviewers The skills required by competent interviewers may be summarised as follows: (1) Interviewers must have strong familiarity with the job. A good job description should be the starting point for the interviewer to familiarise himself or herself with the job. The characteristics of the job description have been discussed above. The interviewer should be aware of key responsibilities, reporting relationships, how the position fits into the organisation as a whole and whether there are special requirements such as the need to travel internationally. The more familiar the interviewer is with the job, the better can his or her knowledge be utilised to ask relevant questions and to evaluate applicants’ answers. This also enhances the validity of the interview. Research also shows that interviewers with more complete job information make better decisions with higher inter-rater reliability. (2) Interviewers need to know what specific personal characteristics, skills and qualifications are needed for the job. These must all be relevant and job-related, otherwise the wrong criteria may lead to hiring of unsuitable applicants. The

Communication, Interviews, Questions and Body Language

(3)

(4)

(5)

(6)

121

HR manager should discuss critical selection factors with line managers prior to interviews being scheduled. Specific objectives for the interview should be set. Systematic preparation for interviews is important. Information already available from an application form should not be rehashed and a range of questions relevant to the applicant’s background and the job at hand should be developed to enable sustained themes of questioning. Where an application form has been completed prior to the interview, any gaps or inconsistencies in the application form should be highlighted prior to the interview to enable a fuller picture of the applicant to emerge. Some issues to look out for include unexplained gaps in employment history, questions not answered or only partially answered, inflated job titles, frequent job changes without any convincing reasons for the changes, health problems, inability or unwillingness to work overtime and residence a long way from work. Questions can then be asked about these issues in the interview. Beware of prejudices. Every one has prejudices, the important thing is to recognise them and try to be objective as far as possible. There are certain common prejudices which may be easily recognised (see above). Good interviewers do not make snap decisions. In fact, as discussed above, research indicates that most interviewers actually make decisions within the first 3 5 minutes of the interview. Good interviewers reserve judgment about candidates until they have gathered all relevant information.

Other characteristics of good interviewers have already been discussed above. Thus, competent interviewers seek to put applicants at ease before asking any searching questions. They also watch the body language of applicants, making allowances for cultural differences. Good interviewers are also aware of their own body language, and seek to avoid sending mixed messages to applicants. They control the interview, and keep it on track, but remember to allow applicants to do most of the talking. They are alert to cues that certain leads resulting from information supplied by applicants needs to be followed up further. In the United States, negligence in the hiring process may lead to legal action; for example, where an employee who has been hired commits a violent crime or robbery against a third party or a fellow employee, the employer can be held liable where the employee had a previous record of violence or theft which the employer ought to have known about (Stone, 2008, p. 260). Finally, competent interviewers know how to close the interview in a friendly way, and tactfully communicate to obviously unsuitable candidates that they will not get the job. On the other hand, it is very important to advise applicants who are good prospects when they can expect to hear further from the employer if a decision cannot be made on the spot. Competent interviewers also write up the results of the interview while it is still fresh in their minds. Where appropriate, a checklist of job-relevant criteria should be completed, which will also provide protection against any subsequent charges of

122

Stanley Petzall

discrimination in hiring; that is, the interview record will serve to show that selection was based on objective job-related criteria. Failure to write up the results of interviews soon after the conclusion of the interviews is a major failing of poor interviewers. Reference checking after the interview is also an important part of the selection process. Job offers should not be made until references are checked. Also, reliance should not be placed on only one reference. Where possible, multiple references should be checked. Finally, the validity of interviews should be checked by following the progress of the candidates selected. If labour turnover is too high or candidates turn out to be not up to the job, it will be necessary to re-examine the interview process (Stone, 2008). Alternatively, or in addition, there may be some fault in the recruitment process which needs attention.

4.3.18. Selection and Training of Interviewers Heneman and Judge (2003, pp. 454 456) argue that research shows that there are significant differences in interviewers’ validity. Thus, they suggest that a more appropriate question to ask than ‘Is the interview valid?’ is ‘Who is a valid interviewer?’ Little research is available on how good interviewers should be selected. Appropriate selection criteria may be intelligence and demonstration of effective interviewing skills in interview simulations in order to improve interviewer validity. Training is another method for increasing the validity of structured interviews. Heneman and Judge (2003) suggest that logical program areas which could be covered include: • • • • • •

Problems with the unstructured interview Advantages of the structured interview Development of the structured interview Use of probe questions and note-taking Elimination of rating errors Actual practice in conducting structured interviews

According to Gatewood et al. (2008), training programs actually cover one or more of the following three areas: receiving information, evaluating information and interviewer’s behaviour. In respect of receiving information, instruction has concentrated on hearing what the applicant has said, observing the applicant’s behaviour and remembering the information received. In respect to evaluation, training has focused upon common rater errors, such as halo effect, or rating based on one dimension only, such as presentation, distributional rating errors (such as central tendency or leniency error where candidates are all rated at the middle or high end of the spectrum), similar-to-me effect and first impressions error. In respect of interviewing behaviour, training focuses upon the conduct of the interaction between interviewers and applicants. Such programs emphasise interviewers’ skill at

Communication, Interviews, Questions and Body Language

123

maintaining control throughout the interview as well as enhancement of awareness of how the interviewer’s behaviour influences the interaction with applicants. However, while research suggests that interviewers generally accept training readily, it is unclear how successful training programs actually are. Thus, in respect of trying to reduce rating errors, one study concluded that training programs have at best enjoyed mixed success (Harris, 1989). Of course, the above implies that structured interviews are generally preferable to unstructured ones, which is questionable, and begs the question of how to conduct training for unstructured interviews. A more recent evaluation of interviewer training suggests that well-constructed training programs have reduced some more common rating errors, including halo, leniency and central tendency. Such programs also enhance the reliability of interviewer judgments. However, a practical weakness of training programs is that many are too short in duration to be effective, the median program being only six-hours long. Another practical problem is that only about one-third of interviewers report receiving any formal interviewer training at all (Gatewood et al., 2008). 4.3.19. Recruitment and Selection of Senior Executives In recruiting for senior management employees, behavioural characteristics and competencies are likely to be as important as qualifications and experience. In relation to the position of CEO recent research suggests that CEO’s need to be a catalyst for change and to be able to play a major role in staff development and organisational creativity and innovation (O’Meara & Petzall, 2007). It may be difficult to identify these characteristics from the interviews alone, but they will have an important part to play in the selection process. 4.3.20. Insider/Outsider Theory One of the choices which has to be made is whether to appoint an insider, that is, an internal candidate who is already working for the organisation, or an outsider, that is, a candidate. While research discussed in the previous chapter appeared to suggest that internal appointments should be favoured over external ones on the basis that an internal candidate is a known quantity, there has been a trend for outsiders to be selected over insiders for the top jobs in recent times in many organisations. Dumaine (1993) noted this trend and suggested that some of the reasons include that insiders have tended to become inculturated over time and to have lost perspective, whereas outsiders are seeking to establish their reputations, have not been part of internal politicking and are outside the cultural norms of the organisation. Guthrie and Datta (1994) noted a very strong correlation between poorly performing organisations, and the propensity to appoint external CEOs. They were of the view that performance was considered to be a more important factor than

124

Stanley Petzall

organisational tenure. Thus, a decline in performance and profitability due to external competitive pressures tends to lead to the organisation searching for external talent, especially candidates with a reputation for reversing downward trends in other organisations. Sometimes the concept of insiders and outsiders can be misleading, however, as in certain cases, a CEO may signal an intention to retire with some considerable advance notice. An outsider may then be brought in to be groomed as the potential successor up to five years before succeeding as a CEO. A rationale for this strategy is provided by Borokhovic, Parrino, and Trapani (1996) inasmuch as recruiting a potential successor early allows the board an opportunity to assess his or her strengths and weaknesses before making a final decision to appoint. Guthrie and Datta (1994) have also demonstrated that organisations with a growth strategy are more likely to appoint an external CEO. In a study of 969 CEO successions, Brokohovic et al. (1996) verified the trend to appoint external CEOs. From their study, it appears that where a CEO was forced out of office, it is more likely that the successor would be an external appointment. They also showed that the larger the number of external directors on the board, the more likely was it that an external CEO would be appointed. Guthrie and Datta (1994) also provide empirical evidence showing that organisations with low profitability are more likely to make external appointments. Moreover, in such organisations, appointees are likely to have a functional background such as finance/accounting, production/operations or a process engineering background. They also found that the higher the level of risk involved, the greater the likelihood of a younger CEO being appointed. But smaller organisations were more likely to appoint younger CEOs, while larger ones favoured older CEOs. Organisations using a differentiation strategy advertised intensely to attract candidates with experience in marketing, sales, merchandising or research and development. Thus, the research cited above suggests that in recruitment of CEOs, there may be an exception to the rule that insiders are generally preferred to outsiders, particularly where an organization has experienced a downward trend in performance or is seeking to implement a growth strategy.

4.4.

E-Recruitment and Selection

4.4.1.

Video Re´sume´s

Video re´sume´s are a relatively new feature of employment applications. Such re´sume´s may work well for those seeking positions requiring creativity such as those in the arts or advertising. However, for more conservative jobs, such as those in finance or administration, they are less likely to be effective in capturing employers’ attention. Where they are used, the advice is to keep them short and to the point, probably no longer than three minutes. The key points to stress are who the applicant is, why

Communication, Interviews, Questions and Body Language

125

they are interested in the position and what they can do for the company (Richter, 2007). The video should seek to convey enthusiasm, while seeking to balance creativity with professionalism. Trying to be too original can backfire, as one Yale undergraduate discovered to his cost. His resume showed him lifting weights, ballroom dancing and karate-chopping a stack of bricks. Unfortunately for him, the video was posted on YouTube and became a classic comedy item, spawning dozens of spoofs (Harvey, 2007). However, a number of objections have been raised against video re´sume´s. One problem is that busy job interviewers simply don’t have the time to view video re´sume´s. Whereas a traditional paper resume can be scanned by a recruiter in one minute, it may take at least five minutes to view a video, and that may simply be too long, especially where there are a number of applicants. It is also difficult to highlight key points on a video, whereas this is easily done on a paper resume. Furthermore, the use of videos may constitute a problem in terms of EEO legislation. In the United States (and in Australia too) the practice of requiring job applicants to attach photos to their re´sume´s was dropped because it enabled recruiters to identify applicants’ sex, race, disability and age, which should not be available to avoid charges of discrimination. Another objection to video re´sume´s is that, by their nature, they are verbal and visual, and rejecting applicants for lack of skills in these areas might be unfair if the position does not require excellent verbal or visual presentation skills. There are also technological issues. For example many applicant tracking systems can’t handle videos and some IT systems may actually block them because video files can carry viruses which are difficult to detect. Also, not all videos may be viewable, as formats differ widely and the recruiting organisation may not have the necessary format to view the video. It is also difficult to use video re´sume´s for comparative assessment with standard paper re´sume´s. They cannot be laid out on a desk, side-by-side, like paper re´sume´s. A practical problem is that many video re´sume´s are not very well-made, and do not do applicants justice. Thus, it may be wiser for applicants to stick to the standard paper resume (Sullivan, 2007).

4.4.2.

Skype and Distance Interviewing

Skype is a free internet-based video service which started operating in 2003. Its name is short for ‘sky peer-to-peer’. Only in recent years, however, has its use become more widespread for job interviewing purposes. Universities in particular seem to have adopted Skype for convenience, at least to conduct first interviews where candidates are too remote to attend in person or the costs of travel are judged excessive. One estimate is that web-based interviewing has saved university departments in the United States between $5000 and $10,000 per search. Apart from cost factors, the advantage of Skype interviewing over telephone interviews is that the applicant and the interview panel can see each other and read

126

Stanley Petzall

each other’s body language. However, there are problems with the technology. Unless all members of the panel are situated within an ideal distance from the webcam on the computer, they can appear rather distant to the interviewee. Also, interviewees need to ensure their surroundings are reasonably neat and tidy, as they are picked up by the webcam. Seen at the wrong angle, an interviewee can also present a strange aspect. Visual quality of course may also vary, causing annoyance to both interviewers and interviewees (Stone, 2008). One person who successfully applied for a position in a university also found that unexpected happenings can intrude — he was doing the interview from home and his dog suddenly started barking in a frenzied fashion towards the end of the interview, which was picked up by the webcam. Nevertheless, he was called for a face-to-face interview, and ultimately got the job (Winzenburg, 2012; Wilson, 2010). Thus, it would appear that Skype may be a useful method of conducting first interviews, but a final interview would generally still be held face-to-face. Once an organisation has short-listed remote applicants, it is still advantageous to pay for them to be flown in as the cost of an unsuitable appointment would greatly outweigh the cost of flying them in for a final face-to-face interview (Stone, 2008). However, in the case of at least one American university, the candidate was hired on the basis of a Skype interview alone (Wilson, 2010). A variant on the video interview is to hire a consulting firm to conduct video interviews for the organisation. Under this variant, the organisation identifies the candidates and gives their names to the consulting firm. Interviews with short-listed candidates are then videotaped by the consultant and the tapes sent to the organization. This is cost-saving, as with Skype interviewing. It may also be advantageous where employers only wish to interview a few applicants at a given location. Such interviews can also be arranged at short notice. However, the obvious disadvantage of this procedure is that no face-to-face contact is involved between applicants and representatives of the organisation. This may affect the validity of the interview (Heneman & Judge, 2003). Thus, Skype would appear to be a preferable method for conducting first interviews.

4.5.

Laws Impacting Upon Staffing

Some brief consideration has already been given above to laws which impact upon recruitment and selection. However, as the law is becoming increasingly important in relation to human resource management, it is necessary to discuss this issue in more detail here. One area of the law which applies to recruitment and selection, as well as the rest of the employment relationship, is EEO law. EEO (in terms of employment, promotion, opportunity for training or transfer) in the view of one authority means that: ‘… an organisation will be managed according to a regime where the best person for the job (in terms of promotion, opportunity for training, or transfer etc), irrespective of matters of group identity such as gender, race, colour … . will be able

Communication, Interviews, Questions and Body Language

127

to perform in that position according to their intrinsic merit’ (Jamieson, 2008, p. 96). However, it is a fact that many organisations do not operate under a regime as specified above (Bray et al., 2011). They, therefore, lay themselves open to possible legal action if individuals who feel they have been discriminated against choose to bring a case against them under the EEO legislation. The model for anti-discrimination laws in Australia, as in other English-speaking countries like the United States, Britain and New Zealand, is to provide individuals with a general right not to be discriminated against, and a complaints procedure to access a relevant tribunal if they feel this right has been breached. Strictly speaking, anti-discrimination laws impose no positive obligations upon employers to do anything to avoid discrimination, such as identifying discrimination in the workplace, educating employees about discrimination, establishing policies against discrimination or providing internal grievance procedures for employees who feel they have been discriminated against. However, many organisations, mindful of the desire to avoid complaints by individuals, do take a strong risk management approach to avoid litigation and thus seek to incorporate anti-discrimination principles into every human resource function (Bray et al., 2011). In Australia, the Commonwealth and the states have all passed varying statutes to deal with the issue of discrimination in the workplace. While details vary from jurisdiction to jurisdiction, generally EEO legislation seeks to outlaw unfair discrimination against employees on the basis of race, ethnic origin, age, disability, gender, marital status, pregnancy, religion, political opinion and trade union activity. In addition, under Section 351 of the Fair Work Act Cth (2009), additional prohibitions on discrimination have been added to include sexual preference and family or carers’ responsibilities. In the state of Victoria, discrimination is prohibited against individuals on the ground of ‘physical features’ (see Section 6 of Equal Opportunity Act, 1995 (Vic.)), a prohibition not found elsewhere in Australian legislation (Bray et al., 2011, p. 309; Stone, 2008, pp. 123 124). Thus, it is important that if possible, organisations have a human resource manager or other specialist with a specialist knowledge of the relevant law of the jurisdictions in which they are located. However, it is noteworthy that discrimination may be allowed where it is consistent with inherent and/or genuine requirements of the job. Indeed, there may even be circumstances where discrimination is required by the law. For instance, in the Australian states, it is a requirement that liquor may only be sold by people over the age of 18. It is therefore lawful for a liquor retailer to refuse employment to persons under the age of 18 years (Bray et al., 2011; Stone, 2008). Unfair discrimination may also take direct and indirect forms. Both direct and indirect discrimination are prohibited. Direct discrimination occurs where a person or group with a particular attribute is treated less favourably than another person or group without that attribute. An example is where a person is passed over for employment because of their race, but another person of a favoured race is employed who is no better qualified than the person passed over. On the other hand, indirect discrimination may result from application of policies which may

128

Stanley Petzall

appear neutral or inoffensive, but have the effect of disadvantaging an individual or group. Examples might include absence of flexible working policies, which may discriminate against workers with family responsibilities, or a policy requiring five years of continuous service which might discriminate against women who are more likely to take time off to have children (Bray et al., 2011; Stone, 2008).

4.6.

Evaluation

In the past, the employment interview has been seen as having a low degree of validity. However, a review of more recent research concludes that evidence for the validity of both structured and unstructured interviews has been much more positive. A meta-analysis (which is a ‘technique … for cumulating effect sizes across a number of studies in order to get an estimate of the true relationship between two variables’ (Wright, Lichtenfels, & Pursell 1989, p. 194)), carried out by McDaniel et al. (1994), concludes that: • The average validity of interviews was found to be r = .26 (a high degree of statistical validity) • Structured interviews were more valid (r = .31) than unstructured interviews (r = .23) • Situational interviews were more valid (r = .35) than experience-based interviews (r = .28) • Panel interviews were less valid (r = .22) than individual interviews (r = .31) Thus, according to Heneman and Judge (2003), the values found in this study were higher than previous researchers had thought. The results of an earlier meta-analysis conducted by Wright et al. (1989) agree with those of McDaniel et al. (1994). They are also supported by a more recent narrative review of post-1989 employment research (Jelf, 1999). In summary, it is pleasing to know that academic research overall has confirmed the validity of the selection interview, as it so widely used to fill jobs.

4.7.

Summary

In this chapter, we considered the basic interpersonal communication model, including verbal and non-verbal behaviour and cultural differences. This model was applied to interview situation to highlight the importance of communication in this situation. Both interviewers and interviewees can benefit from knowledge of good communication. Issues relating to international recruitment and selection were briefly considered. More Australian companies are now becoming multinationals, and there is often a need for expatriates to be brought in to fill management roles. Three different types of strategy, ethnocentricity, polycentricity and egocentricity were considered, and reasons were examined for hiring expatriate managers.

Communication, Interviews, Questions and Body Language

129

The focus was then placed on the employment interview. The role and purpose of interviews in the recruitment and selection process were considered. It was pointed out that in order to be useful as a selection technique, interviews must possess two attributes, reliability and validity. The major types of interviews, structured and unstructured, were examined. The advantages and disadvantages of each type were considered. Other types of interviews, which may be structured or unstructured, including the panel interview, the stress interview, the group interview and the behavioural interview, were also outlined, including their strengths and weaknesses. Structured interviews are easier for less-experienced interviewers to conduct, but unstructured interviews may be more successful in eliciting job-relevant information from interviewees. Use of structured and unstructured interviews is also culturally conditioned. Research indicates that behavioural interviews may be better predictors of applicants’ success, but the practical limitations on the resources of time and money mean that this type of interview is relatively little used. Consideration was given to interview preparation, including selecting the best environment and screening of applicants to be selected for interview. We examined and evaluated different types of questions which may be asked at interviews, and the best techniques for questioning applicants. The importance of active listening was highlighted, and techniques presented to improve listening skills. Criticisms of the interview process were considered, including prejudices and preconceptions, which may taint the interview process. Interviewers should seek to avoid or minimise these prejudices or preconceptions if they wish to be valid interviewers. The skills of competent interviewers were outlined. Consideration was given to selection and training of interviewers. While training may seem desirable, there is no evidence that training necessarily improvers interviewer validity. We then examined the recruitment and selection of senior executives, and considered the factors which cause organisations to select insiders or outsiders. The selection of outsiders is generally driven by the desire of companies to initiate a new strategic direction. Some issues relating to the use of video re´sume´s and Skype and distance interviewing were considered. The law is becoming increasingly important in the selection process, so legal issues relating to selection, with particular reference to Australia, were briefly examined. The chapter concluded with an evaluation of the validity of interviews. Research evidence indicates that interviews are a valid method of selection, with structured interviews enjoying a higher degree of validity than unstructured interviews.

4.8.

Review Questions

1. Outline the basic communication model in organisations. How significant are cultural differences in interpersonal relations in interview situations? Distinguish between verbal and non-verbal communication.

130

Stanley Petzall

2. Distinguish between ethnocentrically, polycentrically and geocentrically run organisations. Give reasons why expatriate managers may be employed in multinational organisations. 3. Explain the differences between structured and unstructured interviews. What are the advantages and disadvantages of each of these types of interview? 4. What are the advantages of behavioural interviews over situational interviews? Why are behavioural interviews less commonly used? 5. Which questioning techniques are most effective? What sort of techniques should be avoided and why? How can an interviewee be put at ease so as to make the interview most effective? 6. List the skills involved in active listening. 7. What are the skills of competent interviewers? 8. Discuss criticisms of the interview process. What is the evidence about the validity of interviews as a selection technique? 9. Why are organisations likely to appoint insiders rather than outsiders to CEO positions? 10. How has technology impacted upon the interview process? 11. In what way does the law impact upon staffing decisions? Discuss the impact of anti-discrimination legislation.

Chapter 5

Aids for Recruitment and Selection Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • • • • • •

5.1.

Appreciate the range of recruitment and selection aids available Understand the roles that these aids play Determine the most appropriate aids for specific circumstances Ensure reliability and validity are appropriate Be able to identify potential areas of discrimination Build equity and fairness into appropriate processes

Recruitment and Selection Aids

In order for recruiters to identify the most appropriate applicant for a position, they need to use a variety of aids. These aids are used to confirm information gained from re´sume´s and application forms as well as material from interviews. This should provide a good insight into each applicant as different perspectives are considered. The aids should complement each other and collectively give the recruiter a better holistic perspective of each applicant. Each component of recruitment and selection needs to be weighted rather than full reliance on one aspect such as an interview. An interview and the results of participating in an assessment centre may each be weighted at 40%, with the remaining 20% divided between objective confirmation of past performance (reference checks) and interaction with team members the applicant will work with. These aids can include any form of testing, trial or probationary period, attendance at assessment centres, the use of game theory or any other methods that help to objectively assess the strengths of applicants.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

132

Bernard O’Meara

Interviews can be flawed due to bias, incorrect interpretation of replies to questions, body language, incomplete questioning techniques and by using inexperienced interviewers. Similarity-attraction theory suggests that interviewers will select those candidates with the personality, traits, interests and values closest to themselves. Thus interviews alone do not capture the whole person (Roebken, 2010). Recruitment and selection aids can confirm or refute information gathered about candidates or they can provide new and different perspectives that interviews alone would not expose. Candidates will be drawn from different organisations, different communities and may have quite different personalities. Thus strategic decisions about reinforcing or challenging existent culture need to be thoroughly considered in order to appoint the right person for the right reasons. Staff within the organisation need to understand the rationale for using a variety of aids to appoint applicants. They also need to have confidence in the processes and trust the judgment of the interviewers. The processes need to be transparent, defensible and agreed upon. The applicants also need to understand the different components of recruitment and selection aids and how these are used. If the image of the organisation is that it empowers staff and involves them in decision making and provides growth opportunities, then the organisation will attract people who embrace these ideas. Applicants will expect recruitment and selection aids that allow them to demonstrate these capacities. Recruiters need to have a purpose for each aid they use in recruitment and selection and complement other components (Kausel & Slaughter, 2011). Recruitment and selection aids can take many forms. Employer branding and image have been discussed previously; however, creating the right image of the organisation for current staff and the community is a legitimate means of becoming a preferred employer of choice (Mandhanya & Shah, 2010). Members of the community who are attracted to the organisation because of its branding, image or identity will apply for positions once it is known that vacancies exist. It can also lead to people delivering their re´sume´s to the organisation (walkins) as a means of communicating to the organisation their interest in working there despite an absence of vacancies. The standing and reputation of an organisation will create a larger pool of applicants where these are positive. However, if the reputation of the organisation is not strong then a smaller applicant pool may be expected, probably with more unsuitable applicants applying.

5.2.

The Role and Purpose of Testing

One frequently used aid is testing. The term testing covers a very broad range of tools that help give an insight into candidates. Organisations use talent management systems to store detailed information about staff. The profile of staff allows the organisation to plan ahead and develop their staff accordingly. The software systems can integrate different components of other data storage systems and this provides an excellent overview of the talent in the organisation and how it is being developed.

Aids for Recruitment and Selection

133

The emphasis on talent has caused large organisations to rethink the role of recruitment and selection, personnel and human resource managers. The title Talent Acquisition Manager/officer is now widely used to emphasise the importance of this role to the organisation and its future. Other titles such as Knowledge Acquisition and Retention Managers are also growing in popularity. These changes in title recognise the impact that recruitment and selection have upon organisations. Pre-employment tests can provide specific information that interviews and re´sume´s cannot. A significant number of re´sume´s contain inaccurate information as job seekers attempt to market themselves in the best way possible. With high levels of unemployment, job seekers attempt to differentiate themselves from other job seekers, and in doing so omit some details or exaggerate others such as job title, responsibilities and salary (Van Steenwyk, 2008). The introduction of Freedom of Information (FOI) legislation across the globe means that employers are reluctant to comment on the performance of previous staff. This feedback may be sought by applicants who are unsuccessful in applying for a position. Instead employers are more inclined to confirm information given by applicants, such as duties associated with jobs, dates of employment, and avoid areas where interpretation or judgment are sought. Interviews are also flawed but are still the most widely used employment tool. However, interviewer bias and applicant nervousness can lead to a misinterpretation of the information given by applicants. In order to offset the flaws involving re´sume´s and interviews, employers use various forms of testing to gain a better insight into the ‘fit’ between applicants and an organisation. Large organisations not only want reliable and consistent tests but they want tests that can be used anywhere around the world where they operate. Preemployment tests need to be effective, efficient and ‘applicant friendly’. The overall purpose for tests is to aid in deciding who the best applicant is. Online testing can be linked directly to talent management software within the organisation to create an individual profile of applicants. The online tests can be competency oriented to determine levels of expertise in undertaking a task, reasoning through a problem, determining client focus of applicants as well as aiding in the appointment of executive staff (Frauenheim, 2011). However, some tests are cultural specific and are less valid as predictors of performance in all sectors of the workforce or other countries. This means that global organisations use different tests in different countries in order to reduce bias and inaccuracy. Online tests which are consistent and reliable allow organisations to use a standard test bank that, ideally, can be used to predict performance accurately, irrespective of country bias, or help determine the degree of fit between an organisation’s culture and applicants.

5.2.1.

Psychometrics

Psychometric testing refers to any standardised test that attempts to measure or assess a person’s cognitive ability or aspects of their personality. However, the need to measure or assess cognitive capacity and personality should be work related and

134

Bernard O’Meara

is necessary. These are conducted by staff or consultants with a specialisation in psychology in order to ensure the metrics are accurately interpreted and are job relevant. The term ‘metric’ is used as this refers to something that can be measured while the term ‘psych’ refers to the psychological make-up of an individual. In order to gain a clearer insight into applicants, organisations attempt to measure aspects to determine if a short-, medium- and long-term fit can be achieved. External applicants are drawn from other organisations and their community, and it is their cumulative life story and achievements that organisations try to measure in their applicants. When applicants apply for a position they bring with them many attributes, personal and professional achievements, knowledge, experience and aspirations. Some of these can be assessed during interviews or by past performance. An educational qualification indicates an applicant has achieved a certain level of education and is readily identified. Other applicant attributes are not as easily identified, however discrimination must be avoided at all times. Applicants may bring the following background and characteristics with them: Education — The level of education can be determined by the level achieved, such as secondary college or university certificates, diplomas, degrees and higher degrees. This illustrates the standard achieved but does not indicate if the applicant can apply the concepts learnt, nor does it reflect the potential of the applicant to undertake higher levels of education. Work experience — Where an applicant has work experience, interview questions can be used to probe the depth of understanding the applicant has of the role. Previous promotions may indicate the applicant has the potential to be promoted further. However, while an applicant may have been promoted in previous roles, employers need to know what it was that made the applicant successful, i.e. levels of commitment, motivation, enthusiasm, luck or something else. Previous success is not always a predictor of future success, and job testing may be considered to determine the suitability of an applicant. Life experience — As people gain new experiences, they learn from these and grow as individuals. Spending a year on an exchange program in another country may not at first appear work related. However, it may indicate the desire for mobility, cultural diversity and appreciation, independence and the desire for personal and professional growth and challenge. These aspects may be dealt with during interviews or reference checks, or they may be difficult to determine because the applicants may not necessarily be aware of their personal drive. Achievements — Throughout their lives people will achieve many things, some of which are clear while others are not. Consistent achievements in education, work life, sporting activities, community service and other areas may indicate drive and an achievement-oriented individual. Thus organisations seek to determine the level of achievement across the applicant’s life — both personal and professional — to gauge consistency. Reviewing

Aids for Recruitment and Selection

135

achievements in a person’s work life only does not show consistency and tells only half a story. Graduates entering employment in their chosen career path may lack work experience but have several educational, sporting and other achievements that indicate their true potential. Expectations — Everyone has expectations to some extent. These can be developed by work and life experiences, or by the wording of job advertisements, feedback through social media or from discussions with family, friends, acquaintances and colleagues. All people will want to be treated with dignity and respect. Many will seek ample wages and salaries, recognition, challenging work, promotion opportunities. Some will not want promotion or an increase in authority or responsibility. However, the degree of fit between the organisation and applicants can, in part, be determined by accurately identifying and understanding the expectations of both parties. This can be difficult if a person is appointed to a position that will lead to promotion, then later the organisation finds that the person is not fit for promotion into the desired position. Organisations also try to match applicants to their: • • • • • • • • •

Culture Structure Orientation or view of staff as assets or liabilities Known competency or knowledge gaps Strategy and future direction Wage and salary policies Cost structure Environment Talent bank

In the case of small organisations, only very basic information about applicants may be sought and even an intuitive approach used. However, in large organisations and those involved in highly competitive markets, the investment in staff is significant and essential. These organisations can fit new employees into their talent banks, include them in succession planning and create individual career maps to optimise the potential of each new staff member. These organisations build success and sustainable competitive advantage through a mutually beneficial relationship with their staff.

5.2.2.

Types of Tests

There are a variety of psychometric tests available. These are administered by qualified psychologists who understand the role and purpose of such tests and the

136

Bernard O’Meara

terminology associated with them. However, a number of consultants train staff the use of some tests which can be administered by non-psychologists. Personality and traits — Each person has a level of commitment, drive, motivation and enthusiasm, values and belief systems that they have developed throughout their lives. These are more difficult to assess via interview questions and reference checks unless the applicant has a reputation for these attributes or is known to the organisation. There are people who lack confidence and therefore frequently seek a supervisor to verify the accuracy or quality of their work. Others may prefer minimal supervision or intervention. Some people work well in teams while others may prefer to work alone. Also the interpersonal and communication skills of people will vary. In terms of fit between applicants and an organisation’s culture, structure and strategic imperatives decisions will need to be objectively made about each applicant’s suitability. A trait is a constant characteristic of an individual. The assessment and understanding of personality is just as challenging as the assessment of cognitive capacity. An organisation may seek to appoint a marketing manager with a very sociable manner who will be expected to entertain clients. This may be a higher priority than attention to detail or financial prowess. The assessment of personality solely through the lens of interviews is severely limited. It is also subjective and must be work related. Personality may be impacted by health, recent severe events such as deaths in an applicant’s family and at times may vary to suit specific situations. However, some traits are entirely consistent. Throughout the recruitment and selection stages, organisations try to gain as much information as possible about the applicants in order to match them against the position’s selection criteria (performance factors or knowledge, skills, and other attributes and competencies). For highly competitive organisations, this means gathering data including the aspects listed above. Personality traits can include the following: • • • • • • • •

Cooperativeness Dominance Original thinking Socialisation Flexibility Responsibility Conscientiousness Tolerance

However, while a number of personality inventories exist, a large amount of testing revolves around the Big Five Personality Characteristics Inventory. These include: • • • • •

Extroversion Agreeableness Conscientiousness Emotional stability Openness to experience

Aids for Recruitment and Selection

137

This particular inventory condenses the range of traits to those considered critical to the workplace. This instrument takes about 45 minutes to complete but needs to be interpreted by a qualified psychologist (Gatewood & Feild, 2001). However, Gurven, von Rueden, Massenkoff, Kaplan, and Vie (2013) found that when the five factor model was applied to non-traditional areas such as foragerfarmers, the model was not consistent and could not be applied universally. The effects of culture and socioeconomic background have an impact. Research by Arthur, Woehr, and Graziano (2001, p. 671) also argue that: Several distinctive characteristics of personality testing raise important conceptual, methodological, and practical questions. A general implication is that personality assessment and testing in employment contexts is more complicated than it would appear. Practitioners and researchers must be cognizant of these issues in the application of personality tests to employment decision making. The use of personality testing must be justifiable, non-discriminatory and wellconsidered if they are to be used as reliable predictors of job performance. An appropriate weighting must also be given to them. However, other tests are more job specific and accurate predictors of performance. People will react differently depending upon the situation they find themselves in. In an interview setting, applicants may act as they believe the interviewer expects them to act. In this instance the interviewer needs to determine the superficial role being played from the core traits of the individual. This takes exceptional competence, and unskilled interviewers may well misinterpret the individual’s situational response and assume that the traits being displayed are core traits. Hence, qualified psychologists can play an important role in assisting organisations gain a true insight into the personalities of applicants. As people will often act as they believe they are expected to act when seeking appointment to a position, many organisations are surfing social media websites to get a better indication of how staff and potential staff really act. People often say candidly what they think on social media sites. The use of social media can complement personality and cognitive assessment or, in some cases, replace it. Because the investment in staff can be substantial, employers need ways to ensure they choose wisely. However, poor behaviour on a social media website does not mean the applicant or employee will bring such behaviour to the workplace, and discrimination needs to be avoided in favour of objectivity and fair mindedness.

5.2.3.

Cognitive Capacity/Ability Tests

Each individual has a different level of intellect and only a very basic assessment of this can be made during interviews. Reference checks may not be helpful if the applicant’s current employer ‘helps’ the person leave their job and go to another employer because they are not currently successful in their present job.

138

Bernard O’Meara

Also, previous achievement in challenging positions may indicate a level of cognitive capacity but it does not predict the effective use of this capacity or the attainment of a higher level of cognitive capacity in the future. These tests can be referred to by many names: cognitive capacity tests, cognitive ability tests, mental ability tests, intelligence tests or IQ tests. Each person has a range of cognitive abilities which can be measured by separate tests designed to measure these abilities in individuals. An individual score can be achieved by individuals undertaking a test designed to measure a specific ability. The score is then compared to other normative scores to determine where this person’s score fits compared to others. Thus a person’s individual score can indicate if they are above average, below average or average when their score is compared to the broader populace. However, Gardner and Deadrick (2012) conducted research on cognitive ability tests and found that when differential validity (difference between subgroups and the relationship between performance predictors and selection criterion) was applied to these tests they disadvantaged African-American and minority applicants compared to Caucasian applicants. General cognitive ability tests attempt to measure a range of these abilities simultaneously and combine to form an overall score derived from the individual scores achieved. The overall score can also be compared to a known range of scores to determine where the applicant’s score fits compared to others. Gatewood and Feild (2001, p 571) list some of the abilities measured by cognitive-based tests. These include: • • • • • • • • • • • • • •

Conceptual classification Conceptual foresight Figural classification Figural identification General reasoning Intuitive reasoning Logical evaluation Memory span Numerical fluency Ordering Semantic relations Spatial orientation Verbal comprehension Visualisation

These cognitive abilities are all different to each other, and before the correct test can be identified for use in recruitment and selection it must be determined what needs to be measured and why it relates to the job. A young graduate with a bachelor’s degree has already shown that his or her cognitive abilities have been stretched by achieving a university degree. This may indicate a base level for an applicant, and organisations may test the person to

Aids for Recruitment and Selection

139

determine how far above this level the person’s abilities can take them. This may indicate their future promotability. An organisation would want a manager who understood concepts and could reason through issues as they arose. A manager would also need to recognise semantic nuances and have strong verbal comprehension competencies. Global-based organisations may seek staff who appreciate cultural diversity and the positive role it can play. They may seek staff who can analyse data and evaluate the potential of new markets, plan and sequence activities to give the organisation its competitive advantage. However, as O’Meara and Petzall (2007) point out, in the Australian higher education sector, potential university CEOs are not tested at all. Instead applicants are judged on their previous experience and perceived contribution to previous universities, and this is used as a basis for selecting candidates. Initial interviews with selection panels last, on average, 45 minutes. Applicants may also be required to address the university executive and its board or council and be judged on their mental agility and ability to respond to questions posed and their ability to articulate a vision for the university. In this instance, tests are not seen as providing any greater insight into applicants. The recruitment and selection strategy includes activities that require applicants to demonstrate their cognitive abilities rather than measure them via testing. There are alternatives to formal testing but their reliability varies. Mechanical ability tests can be given to technicians, fitters and turners, mechanics and those designing, building and maintaining machines to determine their level of technical competence as well as their ability to think through solutions to problems. Thus, some testing can focus specifically on areas such as machinery while others can be used to assess competencies and personal traits.

5.2.4.

Graphology

A unique form of assessment is the use of graphology — the systematic analysis and study of handwriting. Graphology has been used to identify health issues of the writer, hidden potential, career counselling and assessing personality compatibility. The analysis is based on 300 different handwriting characteristics, such as the size of the writing, slant, shape, letter width, links, loops, page layout and the writer’s pressure on the paper (King, 1998). A review of The British Institute of Graphology (TBIG) (2013) website shows areas related to recruitment and selection as being used for determining career choices, management development, personal development, recruitment, preinterview screening and integrity/security assessments. Graphologists will ask an applicant for a brief one-page written self-description during an interview and use this as a part of his or her evaluation. While Brody (2010) argues that there is no scientific evidence for the use of graphology, he suggests that those wishing to evaluate the use of graphology in selection practices

140

Bernard O’Meara

should not weigh the outcomes too highly. He suggests that selectors should be extremely cautious about using the results of graphology. All strategic recruitment and selection aids need to be considered on their merits. The psychology of graphology suggests that people express themselves by the contents of their written material as well as the way they write. A common example of this is where an angry or frustrated person pushes the pen harder into the paper rather than flow over it smoothly.

5.2.5.

Situational Judgment Tests

Situational Judgment Tests (SJTs) are relatively easy tests to administer and score and used in management, supervisory and graduate recruitment. Applicants are given a problem to analyse as well as a number of possible responses to the problem from which they choose the best option or are asked to rank the possible responses. Because they are based on plausible situations that applicants may have encountered or could encounter, they are more readily accepted by managers and applicants. Salter and Highhouse (2009, pp. 392 393) use the following example developed by Weekley, Ployhart and Baughman (2006): One of the people who reports to you doesn’t think he or she has anywhere near the resources (such as budget, equipment, and so on) required to complete a special task you’ve assigned. You are this person’s manager. Possible responses include: • • • • •

Tell him/her how he/she might go about it Give the assignment to another employee who doesn’t have the same objections Tell the person to ‘just go do it’ Ask the person to think of some alternatives and review them with you Provide the employee with more resources

The SJT is different to hypothetical questions used in interviews and/or assessment centres. Instead they use empirically keyed standardised response alternatives developed in the item development stage. While there is debate as to what SJTs actually measure (common sense, good judgment and so on), there is evidence supporting the use of these as predictors of future job-based performance. Assessors can contrast questions such as What would you do in this situation? With deeper questions such as What should you do in this situation? The latter question may allow an insight into applicants’ thought processes, predicted behaviour, priorities and personal values as applicants explain the rationale for deciding what they should do.

Aids for Recruitment and Selection

5.3.

141

Reliability and Validity

The concepts of reliability and validity were raised in Chapter 3. While these concepts need to apply to all aspects of strategic recruitment and selection such as interviews and even question types and techniques, they are especially relevant to all types of assessment tools (testing). Reliability and validity allow psychologists and HR practitioners to confirm that tests being administered are appropriate and assess what they are supposed to assess.

5.3.1.

Reliability

In terms of staff selection, Gatewood and Feild (2001, p. 115) refer to reliability as ‘the degree of dependability, consistency or stability of scores on a measure (either as predictors, criteria or other variables) used in selection research’. Whenever an assessment tool is used, the staff administering the test need to have confidence that it consistently measures the same criteria in all applicants. Reliability also means that if applicants are retested then the same or similar results should be achieved. If reliability is not possible then the assessment tool is unreliable and may give inaccurate results. Its use may then be inadvisable. Reliability can be estimated, and at a basic level an assessment tool may be high, medium or low in reliability. Psychologists and statisticians calculate the reliability of tests and errors of measurement prior to their release for use. Errors may impact the reliability of assessment tools and the source of errors considered. The reliability may vary between geographic regions and countries and reflect different work patterns, cultural and ethnic variations, levels of experience, areas of expertise and education. Research shows that applicants often try to manipulate the outcome of tests by positing what the assessor or organisation would deem to be an ‘ideal employee’ and answer test questions accordingly. Those able to discern critical performance criteria are better able to portray themselves via test responses as the ideal employee (Klehe et al., 2012). At a pragmatic level, sources of error can be caused by interviewer’s perception or by the applicant’s mental and physical health, mood, levels of motivation and stress. Applicants may not fully understand how they are required to complete a selection aid or may find environmental issues such as heating, cooling, seating, noise and interruptions distracting, resulting in low levels of reliability (Gatewood & Feild, 2001, p. 122). In this case a comparison between an applicant’s interview outcomes and an assessment tool results may give conflicting perspectives. Where there are variations in expected or actual outcomes, the sources of these errors need to be identified wherever possible and the results reconciled. In respect to differences in age and cognitive ability tests, Brough et al. (2011) found that older staff were as cognitively competent as younger staff. The impact for ‘Boomerangers’, those older people returning to the workforce after retirement, meant that their cognitive abilities were not substantially lower than their younger colleagues.

142

Bernard O’Meara

Hence in recruitment and selection a variety of tools need to be used in order to confirm or refute the outcomes of other tools such as interviews, reference checks, assessment centres, trial periods and testing. Each tool or aid needs to be appropriately weighted. Thus interviews or testing are weighted too highly but may be weighted similarly when they are used to assess the same applicant criteria. Criteria to be assessed arise from job analysis and competency profiling which needs to be extremely accurate, as it forms the basis of assessing applicant suitability and matching applicants with the organisation’s strategic direction. Also, where tests are used to predict the applicant’s suitability and capability to a job and its organisation, multiple approaches need to be used in order to ensure the reliability of the data. Given the cost of recruitment and selection as well as their impact on organisational performance, it is sensible to confirm applicant’s suitability by a variety of means. Other assessment aids include feedback from the applicant’s colleagues, different but similar tests, observation, completing a diary, asking applicants to write about themselves, i.e. essays about their lives, priorities, work history, work ethics, aspirations, motivators and so on. However, the use of more subjective types of assessment introduces the subjectivity of the rater or scorer or interrater reliability. An assessor using subjective means of assessment uses his or her own subjectivity to interpret the results, and this can contaminate the objective reliability of the assessment outcomes. This provides another reason to use multiple assessment tools. 5.3.2.

Test-Retest Reliability

In an ideal situation if a person scored an outcome in a test and then was retested some time later, then the two scores should be identical — in an ideal situation. However, in reality, the closer the outcomes the higher the test reliability. Factors that can influence the test-retest reliability outcome include: • Sufficient time has passed so that a person’s memory of the test does not affect the test-retest reliability • Determining if no significant event has occurred to the applicant that might affect him or her between the test and retest • When only one item has been measured and it is appropriate to retest the applicant The test-retest reliability may be important to measure stability over a period of time, especially where organisations need consistency when measuring across large numbers of applicants. 5.3.3.

Interrater Reliability

In most cases the interpretation of applicant tests are scored objectively. On other occasions the rater must use his or her own judgment and in doing so introduces

Aids for Recruitment and Selection

143

bias. In the case of interviews and observers, multiple raters are used to offset the bias introduced by other raters and to assess the degree of objectivity. In the case of interviews, the use of a panel interview allows for the assessment of the level of objectivity and bias used. This helps the organisation to reduce bias as much as possible along with discrimination and to ensure the interview is as legally defensible as possible. 5.3.4.

Parallel-Test Reliability

Another way of measuring reliability is to administer two different tests. However, each test must: • Have the same number and types of items • Have the same level of difficulty • Have the same averages and standard deviation scores Once the reliability and equivalence are confirmed between the tests, then tests can be administered at any time. Parallel forms of test reliability are not common, but once determined they can be used sequentially or only one test administered. 5.3.5.

Internal Consistency

Gatewood and Feild (2001, p. 129) refer to internal consistency as ‘…the extent to which all parts of a measure (for example items or questions) are similar in what they measure… A high estimate of internal consistency suggests that respondents’ answers to one part are similar to their responses on other parts of the measure’. However, a measure where applicant responses do not affect responses to other questions is not internally consistent. Internal consistency means that each part of the test is interrelated and, therefore, if an applicant can answer one part, he or she should be able to answer other parts effectively.

5.4.

Validity

It is possible for an assessment tool to be reliable but not actually measure what it is supposed to measure. High levels of reliability do not necessarily lead to high levels of validity. Validity refers to the inferences that can be made from the scores on a test or measure, and different inferences can be made regarding a criterion (Gatewood & Feild, 2001, p. 162). A job analysis may suggest that applicants with certain characteristics are more desirable in a job than those without them. An inference may be made that this is the case but it cannot be proven. An inference can be made regarding each criterion identified through job analysis but these need to be verified as accurate and necessary — they need to be valid (Arnold, Silvester, Patterson, Robertson, Cooper, & Burns, 2005, p. 151).

144 5.4.1.

Bernard O’Meara Criterion-Related Validity

One of the most common forms of validity is criterion-related validity. This refers to the degree of accuracy between a criterion and the predictive capacity of the assessment tool being used. Criterion-related validity is high if applicants achieve high scores on a predictor assessment, and once employed or when completing similar tests or tasks also achieve high criterion performance, while the reverse is also true. Such a strong correlation between high predictor scores and high actual performance infers high validity of the test. The test accurately predicts performance of applicants and measures what it is supposed to measure. The level of validity is expressed as a coefficient with the number one expressing perfect or ideal validity and the number zero indicating no validity at all. The higher the coefficient, the higher the level of validity; where organisations use such testing through consultant or in-house psychologists it is wise to know the level of reliability and validity prior to approving their use as predictive tools. A job description for an Information Technology manager may state that the successful applicant must be familiar with such technology and be able to quickly and effectively analyse and resolve disruptions when they occur. This criterion can be assessed by reviewing applicants’ employment history, feedback from their colleagues, their qualifications, or by getting them to outline their approach to resolving problems during interviews. Where management experience is required to successfully undertake the role, interviewers may ask situational questions such as ‘tell me how you have resolved disruptive issues previously?’ As a complement to other tools, applicants could be asked to undertake problem-solving or cognitive ability tests to determine if they can think creatively and quickly where necessary. The results of such tests can be viewed in relation to responses to interview questions, record of previous work history and achievements and feedback from colleagues. Other tests specific to the role may be conducted as well. Where there is consistency and the successful applicant fulfils the role effectively, the measure of the criteria is higher. It is sensible to ensure that only properly researched tests with a proven record of high levels of reliability and validity are used in recruitment and selection strategies. Sources of error should be discussed and minimised as much as possible and tests should only be administered and interpreted by professionally qualified staff. An appropriate weighting should be determined and used in conjunction with a range of other weighted selection tools.

5.4.2.

Concurrent Validity

In concurrent validity, both criterion and predictive data are collected at the same time regarding current employees and hence referred to as concurrent validity. Where job analysis is used to identify critical knowledge, skills, attributes (KSAs)

Aids for Recruitment and Selection

145

for a job, tests can be identified that measure what is required to be successful (predictive) in these job tasks. At the same time, criterion data is gathered, such as output, quality, timeliness, performance management feedback or other criteria related to the job (criteria). The tests are considered to be valid predictors of performance if statistically significant relationships with criteria exist.

5.4.3.

Predictive Validity

Instead of collecting predictive and criteria data together, predictive validity involves the collection of data over a period of time (Gatewood & Feild, 2001, p. 168). Once a high correlation is determined regarding the relationship between predictive and criterion validity data, the tests can be given to applicants and not current employees. The predictive validity of the tests has been verified via concurrent means and can be used with a degree of confidence in predicting the performance of applicants in the job. Concurrent validity processes confirm the validity of tests given to existing staff so they can be given to applicants.

5.4.4.

Other Forms of Validity

Face validity refers to the perception of the applicants undertaking such tests. When applying for vacant positions and being required to undertake tests, applicants expect the test to be relevant to the job explained to them. If there is a clear link between the job and the test then applicants will be much more amenable to undertaking the test. However, where the link is tenuous then applicants may be more cautious about completing the result and a potential source of errors may arise unnecessarily. In order to reduce applicant’s stress and to increase the levels of reliability and validity, it is wise to explain the role that the test will play in the selection process. Giving applicants an overview of the weighting of all aspects of the selection process, including tests, and answering any questions they may have will lead to a much smoother process. It is usual for interviewers to give an overview of the selection processes and weightings to the applicants during the initial interview. Effective communication is essential so that applicants understand the processes involved and there are no surprises. The interviewers need to be able to answer applicants’ questions and show that they have a clear understanding of the processes themselves and support the use of tests and other assessment tools. This is especially the case where interviewers do not administer the test themselves. Content validity refers to the capacity of a test to cover a representative sample of the criterion being tested. The test must cover all essential aspects of the criterion in order to assess applicants’ knowledge. The content covered by the test should assess

146

Bernard O’Meara

the knowledge and behaviour of a person who would typically be familiar with such a role. A person applying for the position of a commercial aeroplane pilot would clearly need to demonstrate a knowledge of avionics and how to respond when warning lights come on. The applicant may be required to demonstrate skills in a simulator to show he or she can captain the plane. However, a commercial pilot also needs to know about the use of radar, weather patterns and their impact, communications, how to access airspace over different countries on international routes and emergency procedures. An applicant may also need to demonstrate his or her navigation skills, knowledge of de-icing practices, security requirements, processes at airports and how to avoid restricted airspace. In this case the employer may use several different tests to assess the applicant’s competence or use one of more integrated tests that assess applicant’s competence across the range of knowledge, competence and experience. It would be expected that a typical commercial pilot would have a thorough knowledge of all these aspects of the role while training could be used to reinforce any areas lacking experience. The role of a commercial pilot is substantial and carries a great deal of responsibility for passengers, crew and the aircraft. Thus content validity would be achieved if a representative sample of the role or part of it were fully assessed. A test of avionics would allow applicants to demonstrate competence in this area but if other important areas were not assessed then the test would have low content validity. The employer could not be confident that the applicant had a sound knowledge of the necessities of being a commercial pilot. Construct Validity is a term that refers to the psychological characteristics deemed necessary to successfully and effectively perform a task or job. Every applicant brings with them a myriad of constructs or psychological characteristics such as intelligence, communication ability, motivation, ability to work in a team or work independently and leadership. As applicants leave one employment system to join another, they bring with them an accumulation of experience, knowledge, values and belief systems. It is these characteristics that make them attractive to potential new employers, who determine if this accumulation adds value to their talent bank. Not all employers will seek the same constructs in new employees but will seek those they believe are most valuable to their system of employment and in enhancing strategic talent. However, as people have a number of different intangible but observable constructs, organisations strive to identify which constructs make their staff successful. This can mean deconstructing the psychological characteristics of individuals and attempting to measure the constructs deemed value adding. Tests can be used to measure the constructs provided the correct constructs have been identified. According to Gatewood and Feild (2001, p. 184), ‘Construct validity is a research process involving the collection of evidence used to test hypotheses about relationships between measures and their constructs’. Once a desired construct is identified, different tests and tools can be used to determine if the tests (indicants) actually measure what they are supposed to

Aids for Recruitment and Selection

147

measure. As more evidence is gathered to support the precept that the tests are accurately measuring the constructs they are supposed to measure, the level of construct validity increases. If a test is not reliable, it is not valid. If a test is valid, it must first be reliable, but every test that is reliable need not be valid. Those engaged in strategic recruitment and selection need not be psychologists but they do need to understand the terminology and how/why these are applied.

5.5.

Situational Testing

5.5.1.

Assessment Centres

An assessment centre is an artificial environment created to allow applicants to undertake a range of activities designed to demonstrate their cognitive abilities and traits to observers. The assessment centre allows observers, organisational staff and/or consultant psychologists to see how applicants deal with different scenarios in a practical setting. Over a period of hours or days applicants focus on the tasks they are involved in and it becomes more difficult for them to maintain a facade for the observers. Eventually, core traits will become evident and give the observers a fairer indication of applicants. Applicants are informed early in the selection process that they may be required to attend an assessment centre and told the role and purpose of this form of assessment with respect to other selection tools to be used. While the use of assessment centres is generally used to assess and employ graduates, it is not restricted just to graduate recruitment. Participants in assessment centres are given a range of activities to undertake and complete, and each task is designed to test their constructs in a practical way. The fit between individual participants and the organisation is assessed through various activities. The participants are observed and therefore assessment centres are subject to the rigours of reliability and validity. While the duration of the assessment centre varies, most have a similar structure. Job analysis is undertaken and the core criteria are identified and form the basis for the assessment centre activities. Thus the constructs being assessed are all job related. Sources of errors from participants, e.g. nervousness, are assessed through observation and considered. However, non-job related constructs such as a participant’s personality may be observed and trained assessors help guide selectors to the core constructs such as interpersonal and communication skills. The activities undertaken can vary depending on the constructs necessary to successfully meet the job criteria being assessed. Garavan (2007, pp. 155 156) outlines these and include the following: In-basket exercises — In one in-basket exercise, participants were placed in the role of a regional bank manager and given two hours to reply to 30 customer

148

Bernard O’Meara

complaints regarding poor customer service, low performance and HR issues. Graduates had to prioritise the severity of the complaints and complete a typed report regarding the issues that had to be emailed to the chief assessor. Similar scenarios can be developed that assess participants’ communication competence as well as their capacity to analyse core issues, make decisions, adhere to time constraints as well as plan and organise their activities. These individual constructs may infer a level of participant’s intelligence, however they relate to specific aspects of the job to be filled. Leaderless group activities — In this activity, randomly selected groups of four or five graduates were brought together and given a structured problem and they were allowed 15 minutes to read a two-page overview of the problem. They then had to identify ways to resolve the problems and any other issues that needed addressing. They then came together for 40 minutes to discuss the problems as a group and told that at the end of this time they would need to give a 10-minute presentation outlining their analysis and recommendations. In this case it is important to note that no leader of the group was appointed by the assessors. Instead the participants had to decide how best to resolve the problem, address issues that were identified, work together and produce an acceptable presentation. This exercise was used to identify participants’ problem solving skills, analytical competence, their ability to influence and work with others, their delegation, goal orientation, presentation and communication abilities. These constructs may be generic characteristics desired in all graduates but they are important for those destined to fill senior management roles within organisations. Graduates are targeted as they have demonstrated their learning capacity by gaining a qualification and have ‘learnt how to learn’ and can enhance an organisation’s talent bank and bring in new ideas. Case scenarios — Case scenarios are used in assessment centres to assess applicants’ characteristics and to confirm those already identified by other tests. The case scenarios reported by Garavan (2007) involved management issues in actual organisations. The graduates were given 65 minutes to read the case and prepare a typed report analysing the issues raised and appropriate recommendations. The reports were then emailed to the chief assessor. In all instances where material had to be emailed to the chief assessor that person then distributed the material to the other assessors for comment and discussion. As all material had to be typed and emailed to the chief assessor, the computer literacy of participants was also being assessed as well as the content matter. The case scenarios required analysis, prioritisation, problem solving, timeliness and appropriate recommendation that were well argued and targeted. While some constructs were being reassessed, new or different constructs were also being identified and compared to the actual job criteria. Interview simulations — Interview simulations require each graduate to have a one-on-one interview with a trained interviewer lasting 30 to 40 minutes. Each interview was observed by two assessors while the interviewer used a series of structured probing and behavioural questions related to the job criteria previously identified as core to the job.

Aids for Recruitment and Selection

149

The interview allowed the assessors to view applicants’ performance without other graduates being present. While the focus was on job criteria, the interview allowed assessors the opportunity to determine how graduates perform in groups and by themselves and how closely they meet the job criteria. Oral presentations — Oral presentations are also used to assess the participant’s abilities. The graduates had 20 minutes to choose a topic amongst several topics available to them and they had 10 minutes to make their presentation which was observed by two assessors. The assessors were looking at how organised, structured and logical the presentation was as well as how the presenter generated interest and enthusiasm and how convincing and informative their arguments were (Garavan, 2007, p. 155). Garavan (2007) found that assessment centres did have a role to play in predicting person-organisation fit. Graduate performance at assessment centres could be used to determine job appropriateness and the use of high socialisation practices, and effective training and development tended to enhance graduate fit and performance. The interaction between the trained assessors and the organisation is important in order to ensure the constructs being assessed are the correct constructs for a specific job. Once there is a thorough and agreed understanding of what the assessment can achieve and how, then both parties can focus on how best to assess participants. Participants need to be given feedback at the conclusion of the assessment centre and this needs to be done in a positive and constructive manner. A variation of assessment centres is the developmental assessment centre (DAC). The focus of the DAC is on developing existing staff in an organisation. There is a clear benefit when the staff within an organisation are given the opportunity to participate in a DAC which in itself may be motivational. This opportunity may signal to those staff that they are valued and appreciated and that the organisation is willing to invest in their futures. Another benefit following the DAC is that unambiguous feedback can be given to participants and opportunities given to them to put into practice what they learnt at the DAC. This process can certainly engage staff and can effectively enhance the current talent bank of the organisation through developing existing staff. Organisations that embrace the People-Performance-Profit/Other outcomes approach will see the strategic benefits of this, while cost-conscious organisations may find it an expensive exercise (Applebaum, Hartel, & Shapiro, 1998).

5.5.2.

Game Theory, Simulations and Innovative Selection Tools

The use of game theory has become common in many contemporary situations. In defining game theory, Dixit and Skeath (1999, p. 3) state that: When you think carefully before you act—when you are aware of your objectives or preferences and of any limitations or constraints on your actions, and choose your actions in a calculated way to do the

150

Bernard O’Meara best according to your own criteria—you are said to be acting rationally. Game theory adds another dimension to rational behaviour, namely interaction with other equally rational decision makers. In other words, game theory is the science of rational behaviour in interactive situations.

Game theory involves decision making and an awareness of the impact of that decision on others and the outcome of the game. In an education and assessment situation, the term ‘game’ does not include games of chance but instead refers to games where players compete with each other and differ only in their decision making, interpretation of any rules and strategic intent. The inclusion of game theory in the recruitment and selection processes may allow assessors to observe, via games, an applicant’s competitiveness, logic, strategic thinking and goal orientation. Computer simulations have been used in higher education and management education programs as learning and assessment tools. The ‘Muck Game’ is used to aid in the transfer of knowledge to engineering students. In the game, students must construct a 30-metre high dam of rock and clay. Students must consider variables such as weather, resources, supervisors and labour budgets, timelines, and health and safety. The students must create a plan and work to that plan. Where educators see major deviations to the student plan, they intervene to get the student to stick to the plan or to reassess resource needs or the plan itself. The game forms part of student assessment together with traditional approaches such as coursework and exams (Long, Mawdesley, & Scott, 2009). The innovation game is used in higher education to teach students the interaction of strategic and operational decision making and their impact on new products. Again, this game is used as a teaching methodology to aid students’ understanding of real-life situations and make them more job ready. They learn how resources need to match desired outcomes and how investment can be used wisely to reposition products and organisations in specific industries (Yalabik, Howard, & Roden, 2012). Games and computer simulations are harder to fake and the outcome provides selection assessors an ‘honest signal’. Bangerter, Roulin, and Konig (2012, p. 719) define signalling theory as follows: Signalling theory therefore addresses the conditions under which exchange of accurate information is possible among rational individuals with partly divergent interests. While organisations send positive signals to applicants via competitive salaries and benefits, excellent promotion possibilities and social reputation within the community, they seek positive signals from applicants. From a systems perspective, organisations with an excellent track record in social, ethical and environmental responsibility are signalling to applicants that they are positive in employment and the broader community. The signal infers that such organisations are aware of community expectations and positively respond accordingly.

Aids for Recruitment and Selection

151

The use of computer simulations and games also signals to applicants that they are technologically competent and innovative in their thinking. Graduates, managers and those who are technology literate can engage in assessment tasks using a medium with which they are familiar and would be used by some smaller organisations and most medium to large organisations. However, despite the best intentions of proactive and innovative organisations, some selection methods may disadvantage minority groups as previously mentioned. Applicants may have impairments that are not initially observable, such as Dyslexia, Asperger’s syndrome or one of the other Autism Spectrum Disorders. An understanding of these conditions may allow disadvantaged or disabled applicants to successfully join the workforce of an organisation. This might require an organisation to educate other staff on likely situations such as poor social skills and interaction, provide additional time to complete allocated tasks or assign a mentor to help the person initially. A person with Obsessive Compulsive Disorder may be an excellent employee in situations where attention to detail is critical. In any event, any form of discrimination is not only illegal but sends a very strong negative signal to the community (Goldman & Lewis, 2011).

5.6.

Social Networking

Social media has become a means by which people share information, ideas, views and comments with specific individuals such as friends and colleagues in protected areas. Alternatively, people can share their views and ideas in the public domain where anybody searching social media can access this information. In 2011, a survey of 800 human resource practitioners and consultants in the United States showed that 89% were either currently using social networking or planned to use it as a recruitment and selection tool. Sophisticated software programs used by online search agencies can advertise job vacancies via client staff who use social networking. The people who receive the vacancy information can pass it on to colleagues using their own social network sites and they, in turn, pass it on to those who may be interested in the position (Adams, 2011). This approach builds upon staff referrals but achieves an outcome because staff have social network sites where they can share information privately or publicly. Once the information is received, the recipients pass it on to their contacts who, in turn, pass it on to their contacts. However, recipients would refer it to their contacts who would be interested in the job. Thus each social network contact filters the information and refers it to suitably qualified friends, relations and colleagues. They would not refer a position for an accountant to an engineer but they would send it to contacts who were accountants or knew accountants. The information sharing aspect of social networking can be used by consultants and organisations to create a cascade of information to users. This approach circumvents the need to post job vacancies on noticeboards and intranets but is still extremely effective in identifying suitable candidates.

152

Bernard O’Meara

The same research showed that 70% of those seeking to appoint new staff also examine the candidates’ social media profiles. This is done to gain a better insight into the people they are considering hiring. Social networking websites such as MySpace, Facebook, LinkedIn and Twitter reflect the likes and dislikes of the people who use them and organisations can learn a lot about candidates simply by visiting their social networking websites. While social networking can be a positive recruitment and selection tool, it can also be the reason why people are not employed, or, in some cases why staff are fired. Davison, Maraist, and Bing (2011) cite two scenarios where social networking has had negative consequences. The first concerns a young lady who has applied for a position as a camp counsellor over summer. Despite a very successful interview and providing excellent references, she is not offered the position as employers checked her MySpace website showing pictures of her binge drinking. The second example concerns a man who has been required to work late on a project that he believes is not worth spending time on. Frustrated he sends a ‘tweet’ saying he hates his job and will leave the organisation as soon as he can. The tweet is read by managers of the organisation who then fire him the next day. These scenarios illustrate the benefits and pitfalls of social network use to both employers and candidates. They demonstrate how these networks can be used in recruitment and selection as the sites contain personal information about people that may help an organisation decide to employ or not employ a person. These sites are not totally private and people uploading information to them may be unaware that potential employers are using them as a means of determining if they are suitable for employment or not. Certainly the more strategic organisations troll social networking and other sites looking for talent but do not give added weight to such sites. Organisations can deal directly with individuals rather than go through consultants or other agencies or advertise in other forms of media. This creates a very fast and economical means of identifying and employing suitably qualified staff (Aarts, 2011).

5.7.

Referrals from Crowdsourcing and Innovation Management

Crowdsourcing is becoming a management tool as crowds are used in mainstream areas of organisations. Crowds can be connected to organisations via technology which allows organisations to access and coordinate crowds and use these in a variety of ways not previously considered. Boudreau and Lakhani (2013) identify four ways of using crowdsourcing to address corporate challenges. One of these is the use of crowdsourcing to meet labour and talent needs. In this way organisations can create a platform where desired talent can be accessed on a needs basis and at a highly competitive cost.

Aids for Recruitment and Selection

153

Third-party organisations such as oDesk, CloudCrowd, Freelancer and others match the need of organisations with the desired talent base. This may be considered a means of outsourcing as a match between specific competence and talent needs occurs on an individual basis but using non-standard employment. Crowdsourcing can be a source of full-time staff, or suitably qualified candidates may be referred to the organisation by members of the crowd. Another excellent source of standard employment candidates may be those identified by the third-party organisations as meeting the short-, medium- and long-term needs of the organisations relying on them. In any event this relationship opens up strategic opportunities for both non-standard and standard forms of employment as required.

5.8.

Offers

When an offer of employment is made it forms a contract between the organisation and the successful applicant. The contract may be subject to local, state or national laws and may require specific inclusions such as flexibility. In Australia, the Fair Work Act (2009) requires each new employee to receive a Fair Work Statement from their new employer upon commencement of employment or shortly thereafter. The statement contains 10 National Employment Standards which act as a safety net of minimum terms and conditions of employment. These include: 1. A maximum standard working week of 38 hours for full-time employees, plus ‘reasonable’ additional hours 2. A right to request flexible working arrangements to care for a child under school age, or a child (under 18) with a disability 3. Parental and adoption leave of 12 months (unpaid), with a right to request an additional 12 months 4. Four weeks paid annual leave each year (pro rata) 5. Ten days paid personal/carer’s leave each year (pro rata), two days paid compassionate leave for each permissible occasion, and two days unpaid carer’s leave for each permissible occasion 6. Community service leave for jury service or activities dealing with certain emergencies or natural disasters. This leave is unpaid except for jury service 7. Long service leave 8. Public holidays and the entitlement to be paid for ordinary hours on those days 9. Notice of termination and redundancy pay 10. The right for new employees to receive the Fair Work Information Statement The Fair Work Ombudsman can investigate claims of non-compliance, educate employers and employees as well as commence proceedings those who breach workplace laws (Fair Work Ombudsman, 2010).

154

Bernard O’Meara

Each country will have its own standards, work-based legislation and enforcement agency dealing with such issues. Multinational organisations need to consider the requirements of each nation where they operate. Those organisations employing a resource maximisation strategy tend to exceed national standards in each country as they set their own benchmark higher to protect the rights of their staff. This signals to staff they are valued and appreciated. Letters of offer and contracts of employment will also include other information including the following: • • • • • • • • • • • • •

Commencement time and date Induction program Hours of work Wage or salary including information about bonus or other incentives where they apply Specific requirements such as overtime, travel Reporting relationship Place(s) of work Levels of responsibility and authority Benefits including financial and non-financial Uniforms Performance reviews Training and education Personal and professional development

Each letter is generally crafted to the individual and only contains those elements that will apply to that person. It summarises the agreed salary and conditions discussed at the conclusion of the appointment process. Prior to appointment, many of the details listed previously need to be considered and agreed upon so that all parties within the organisation know the parameters between which discretion is allowed or not. Of course, if an organisation finds an outstanding applicant these parameters may need to be reviewed. It is not uncommon for organisation advertising for a graduate in a given area to advertise that applicants must have/ideally have at least two years’ experience. However, if an exceptional applicant who has just graduated applies, then organisations may see strategic advantages in employing the recent graduate. The letter of offer confirms information discussed privately or at the conclusion of the appointment process. The contract of employment sets out the agreed terms and conditions of the job so that both parties enter into the contract fully understanding what has been agreed to. The contract of employment must be clear, easy to understand and the language used must not be confusing or ambiguous. This is a legal contract. While wages, salaries and benefits are discussed and agreed upon, they still form part of the letter of offer and contract of employment. However, wages and salaries do more than compensate employees for the contribution to an organisation.

Aids for Recruitment and Selection

155

The quantum of wages or salary paid to employees reflect to the community how much staff are valued by their employer. Those more highly valued will be paid more and have a greater amount of disposable income. This will allow them to buy goods and services that others on a lower salary cannot afford. They may live in more affluent suburbs, travel overseas for holidays more frequently or purchase more expensive cars. The wage or salary paid to staff reflects how valued they are by an organisation and can determine their social status in the community. This, in turn, impacts upon their self-esteem as they try to determine their worth to an organisation compared to colleagues. This complex relationship between worth and social status/self-esteem further impact upon the organisation/ community system and the roles staff play in each. It is worthwhile considering the components of offers and contracts of employment from the applicant’s perspective.

5.9.

Psychological Contracts

However, there is another contract that has been referred to earlier. This is the psychological contract. The psychological contract is defined as: An individual’s belief regarding the terms and conditions of a reciprocal exchange agreement between that focal person and another party … a belief that some form of a promise has been made and that the terms and conditions of the contract have been accepted by both parties. So, in terms of careers, the psychological contract represents informal, unwritten understandings between employer and employee(s). From the employees’ point of view, the psychological contract is the agreement that they think they have with their employer about what they will contribute to the employer via their work, and what they can expect in return. (Arnold et al., 2005, p. 532) The psychological contract involves the interpretation of discussion and correspondence between employer and employee and their respective perceptions of what both will contribute and gain. Because this involves a subjective process, the two parties may not share the same perception. Thus it is wise to clarify this unwritten contract to ensure both parties have the same understanding. In the recruitment and selection of new staff, the interviewers are the people applicants deal with the most. This can lead applicants to construct perceptions about the organisations and expectations based on their interaction with interviewers. Once the interviewers withdraw after an applicant is appointed, the new employee may feel somewhat vulnerable; hence, it is important that the interviewers be involved in the induction program and engage in less formal but frequent interaction with new staff.

156

Bernard O’Meara

This will reinforce the view that new staff are not alone once they commence and gives them the opportunity to discuss any unforeseen issues that may have arisen. This approach keeps recruiters involved with new staff, and feedback can be used as part of their organisational diagnostics to remedy any negative issues before further staff are appointed. The psychological contract may be positively or negatively reflected in comments by new staff on their social media websites, depending upon their experiences. In the public domain areas of social networking such comments can be read by employers, fellow staff and others thinking of seeking work with the same employer. In the private domain of social network sites, new staff can confide in their friends and family their real experiences and feelings. If they know of people considering employment with their employer then they are more likely to forward their comments to such people either to encourage or discourage them. In any event the psychological contract is a powerful influence on new staff and how they portray their job and employer to others in the community. These individual experiences inform the decisions of other job seekers in the organisation/ community system. Psychological contracts may differ between age groups and culture. Research by Zhao and Chen (2008) found that younger Chinese workers are more individualistic in nature and form transactional psychological contracts with their employer. However, staff with an internal locus of control tend to form relational psychological contracts with their employers. Interestingly, this finding only applied to Chinese workers, which indicated that a number of different aspects impact upon the formation of a psychological contract, including cultural factors. The research also indicated that personality plays a part in forming the contract and helps explain why different people employed in the same role form different types of contracts. A perceived breach of a psychological contract by an employee can heavily impact upon the employee’s commitment, motivation and level of job satisfaction. In extreme cases this leads to the employee leaving the organisation and potential unrest with other employees if they agree that a breach of the psychological contract did occur (Gerber, Grote, Geiser, & Raeder, 2012). Saunders and Thornhill (2006) also found in their research that permanent employees with a relational psychological contract reacted differently when forced into temporary employment. Some could not accept the transition and saw it as a breach of the psychological contract while the organisation tended to treat this situation in a very transactional manner. More staff-oriented organisations created a gradual transition to allow staff to slowly accept the new relationship and how the organisation viewed their employment. This was necessary for staff moving from a relational contract to a transactional psychological contract.

5.9.1.

Listing Expectations

Graduates and those entering the workforce for the first time may have little experience in how to effectively prepare for interviews and re´sume´s. For such people the

Aids for Recruitment and Selection

157

experience will be new and they will tend to infer cues from the processes and their interaction with selection staff. If the recruitment and selection processes are deemed appropriate, engaging and inclusive, then the applicant’s experience will be positive. Where applicants view recruitment and selection as a positive experience, this may result in a more productive psychological contract being established between the applicant and the organisation. Thus the processes themselves are assessed by applicants and can influence their decision to join an organisation as well as create their job/organisation expectations for the future. Variations between the new holder’s expectations of the job and job realities can lead to ‘feelings of disillusionment, frustration, and turnover…’ (Scholarios, Lockyer, & Johnson, 2003, p. 183). The better the experience, the better the transition to stable employment — the reverse is also true. In 2001, Curtis and Wright (2001, p. 59) stated that replacing key staff can exceed 150% of the person’s annual gross salary. The costs included: • • • •

Separation costs Temporary replacement costs Recruitment and selection costs Induction and training costs

However, when a new recruit leaves an organisation, typically in the first 12 month of employment, the person takes with him or her the knowledge, experience, creativity and the investment the organisation has put into the person. The investment can be through training and education, experiential learning, developmental opportunities, career maps, succession planning and inclusion in the talent bank. These activities are designed to enhance the new staff’s learning curve or experience. When young or inexperienced staff join an organisation it takes time for them to learn the job to the point where they can undertake it with minimum assistance. Enhancing the learning curve means to become more competent faster. With staff turnover the talent bank diminishes. The link between unrealistic job expectations and staff dissatisfaction and turnover has been well documented as noted above. The reason for a variance in real and pre-employment expectations can vary. A person engaged in high-level socialisation pre-employment may assume that this is the norm but find that this is not the case with his or her supervisor or colleagues. Reducing anxiety but ensuring the person knows what to expect when he or she joins the organisation is important. This may mean that all staff coming into contact with new employees may need to display similar behaviour and be consistent and supportive, which signals to the employees that they are valued and have made the right choice by joining the organisation. It may be appropriate in the pre-employment stage to ask the successful applicants what their expectations are. Such a discussion may involve elements identified in earlier chapters such as control over their job, employment stability and security, promotability, adequate remuneration and the like. However, expectations of applicants also include relational areas with staff. In many instances socialisation with staff the person will work with may assist in

158

Bernard O’Meara

identifying unrealistic expectations. Where organisations use self-directed teams, it is common for all members of the team, as well as other staff the person will come in contact with, to be involved at different stages of the appointment processes. Wickramasinghe and Wickramanayake (2013) recommend that applicants do as much research on the job and the organisation as possible. Post-employment, new staff will want to have their actual and potential expertise recognised and respected and will want to identify with the organisation. Inclusivity and openness will be appreciated by new staff especially when selection staff ensure that the person does not have any unrealistic expectations about the job, the organisation or relational matters. These can be monitored during induction and orientation and on an ongoing basis especially during the first 12 months when new staff tend to leave organisations.

5.10.

Direct and Indirect Discrimination and Their Impact

As mentioned in earlier chapters, any form of discrimination is illegal and sends negative signals to the broader community. There are of course exceptions such as in the Arts where a male dancer or an actor plays a male role or for health and safety reasons persons of a certain height need to be employed to operate dangerous equipment. However, while every effort can be made via effective strategic recruitment and selection, other staff in the organisation need to be made aware of the types of discrimination, their impact on all staff, but especially new staff, and the legal consequences of engaging in discrimination. Prior to recruitment and selection, it is recommended to engage in organisational diagnostics to identify any issues that need to be resolved before a new staff member is engaged. Issues may include poor communication, personality clashes, role ambiguity, disruptive team or group dynamics, inappropriate organisational structure, unequal distribution of tasks or responsibilities and counterproductive cultures or subcultures — and discrimination. A review of requested transfers from teams, sections, departments and the organisation as a whole can indicate problem areas. A similar review of all voluntary and involuntary termination of staff can also yield a wealth of information. Where excessive transfers or terminations occur, the root cause needs to be determined and, where possible, permanently resolved. If these issues are not resolved, then exposing new staff to them increases the probability that these staff will leave as well. While gathering data for job analysis and job enlargement or job enrichment, it becomes necessary to discuss these with staff who work in the same area. A 360° review of the job and its environment will include discussions with supervisors and managers, colleagues and those who report to the position where this occurs. Where the position is part of a team then each team member will need to be involved. Where an internal supplier-customer working relationship is employed, all within this chain will need to be involved in discussions.

Aids for Recruitment and Selection

159

These discussions need not be too long or overly time consuming. Whilst gathering information about a job, strategic selectors analyse and evaluate the interactions and impacts on the new employee. This includes determining why the job is vacant, why staff have been transferred from the area and why staff have left the organisation. Included in this is a review of any possible types of direct or indirect discrimination. At times staff have beliefs which can influence their thinking, such as ‘A woman could not do that job’ or ‘he should be able to lift that package without help’. These forms of discrimination may not be evident or they may be very subtle in nature but those to whom they are directed will detect them and act accordingly. Differences in personality and temperament are often overlooked and selectors need to be discerning (Connor, 2009).

5.10.1. Fairness and Equity All staff expect to be treated fairly and equitably. Fairness, equity and comparative justice are interlinked to the point where it is common for them to be interchangeable. Within this mix is social justice. Alm (2010, p. 309) notes this is in respect to egalitarianism ‘…how much a person of a certain centrally important good should have or get depends on how much of a good others persons have or get…all persons have a claim to be equal with others…’. The concepts of equity and fairness involve comparisons which people make with others in similar positions. It suggests that all things being equal every person should be treated the same and share in any benefits. The concepts may be interpreted differently by different persons and the distinction may be due to perceptual differences. One person compares what he or she gets with what others get. Context is also important to fairness and equity. A person in an organisation may have a creative idea and pass this on to management. Other staff may then be involved in turning the idea into reality. If the idea saved the organisation money and sought to share the benefits with those involved, the question becomes who gets what benefit or reward? In the case of the person who thought up the idea he or she may argue that the organisation benefitted due to his or her idea and without that idea no benefit could be gained. The other staff who turned the idea into reality would argue that without their input the idea would remain just that — an idea. Similar issues of context and relativity arise with salary and benefits, promotions, bonuses, redesigning jobs and their environment, redistribution of workload and levels of authority and responsibilities. Any perceived difference in relativity or context can lead to staff making assumptions and feeling undervalued. As a consequence this may impact upon morale, motivation and productivity. Issues of fairness and equity need to be resolved by understanding the perception of each individual involved through discussion prior to any planned changes. If a person is going to receive more than another person for valid reasons, early discussion with the key individuals may be useful. The person who believes himself or

160

Bernard O’Meara

herself may not agree with the outcome but he or she will acknowledge that other points of view exist and the organisation has made an effort to explain the perceived discrepancy. The concepts of equity and fairness are raised frequently and publicly with respect to CEO salaries, bonuses, share issues as well as the total package a CEO gets when he or she leaves an organisation. The community concern is understandably supported by other staff in the organisation who are paid far less. Research suggests that the compensation of CEOs has a range of effects on other staff within the organisation, including staff turnover. CEOs are in a unique position within organisations and whilst they are concerned with fairness, self-interest may override this concern in the case of their own compensation. Reporting to a Board they are able to garner higher levels of compensation for themselves and they determine the salaries of their immediate subordinates. However, smaller wage increases are passed on to staff lower in the organisation and this widens the gap between senior management and lower level employees. This may not be the case in every organisation. Research indicates that if staff perceive they are underpaid in respect to their CEO and with regard to other organisation then higher levels of staff turnover may occur (Wade, O’Reilly, & Pollock, 2006).

5.11.

Traditional and Non-Traditional Reference Checks (Confirmation Material)

A reference check is where an applicant has provided the contact details of people who will attest to the person’s background, character or experience in the workforce. Referees are only contacted once the applicant agrees to let selectors contact them. In some instances where applicants are currently employed it is understandable that applicants do not wish their employer know they are seeking alternative employment. Some organisations use reference checks as a recruitment screening device to reduce the number of applicants for a position. Other organisations use reference checking as a tool to confirm data gathered through interviews, assessment centres or social activities. However, where references are sought from applicants, it is very rare that a referee will not provide an excellent reference. Applicants nominate referees who will support them and give them good references. Hence discussion about reference checks raises the question of their worth if applicants know in advance that the referee will support them. It may be that the job of an applicant in another organisation may be sufficiently different to render the use of reference checks useless. Often it is more useful to seek verbal than written feedback from referees, who may be more candid than if they have to provide a written reference, particularly in view of the existence of FOI legislation. In most countries FOI legislation means that applicants can access recruitment and selection documentation, test results and the feedback from referees.

Aids for Recruitment and Selection

161

As this may create a legal issue, organisations limit the amount of information divulged during a reference check. The details that can be released include commencement and termination dates, job titles and roles, wage or salary particulars and perhaps the reason for leaving. Such feedback can only confirm or refute what the applicant has provided. In a study by Branine (2008, p. 506) on graduate recruitment and selection across 326 organisations that recruit graduates directly, 90% required references. Of this 90%, approximately 34% requested references after a job offer had been made. This was seen as a confirmation tool rather than a source of new information about the applicant. While traditional selection tools such as application forms, interviews and references are still commonly used, an increase in the use of various forms of testing and assessment centres are filling the gap. In these cases employers believe they get a better insight into applicants’ suitability for roles, and as these are job focussed they can predict applicants’ performance. Human Capital Theory states that people have a broad range of KSAs and future potential, and Sekiguchi (2007, p. 122) makes the following observation: Employees who are expected to acquire firm-specific human capital will not need to have specific KSAs at the time of organisational entry. Because such KSAs are firm specific, job applicants have little chance of obtaining them in advance. They will obtain the KSAs after they are hired through firm-specific training. Thus if an organisation is seeking a person to develop KSAs as they relate to the individual organisation then a reference check may not provide much suitable feedback. This is because the organisation is seeking to employ staff who will grow with it. However, if the organisation is seeking a person to fill a specific role then a reference check may confirm if the person has the necessary KSAs to complete the job. Reference checks need to be considered in the context of what the organisation wants a new employee for. Appendix F provides a reference check template.

5.12.

Probationary Periods

A common practice with new employees is to employ them conditionally on a probationary period. This allows the organisation to determine the competence of the individual and determine at the end of the probation period if the person should be given full-time employment or if the employment relationship should cease. The use of probation periods may be covered by union or enterprise agreements, state or federal law or be part of the contract of employment. Probation periods may also be used when existing staff transfer to another part of the organisation. Whilst on probation, new employees have the same rights and benefits as full-time employees.

162

Bernard O’Meara

The new employee will undertake the job he or she has been offered so both the organisation and the new employee can determine if a longer-term relationship will work. Regular interaction with the selection officers and the new employee is essential and reinforces the belief that the person is valued. Throughout the period of probation, the performance of the new employee will be monitored and feedback given to the person. It is common for several people to be involved in monitoring the new employee so that different perceptions can be considered. Prior to the completion of the probation period, this group will meet to discuss the performance of the new employee in terms of quality of work, timeliness, the need for training, efficiency, output and understanding of the job and future potential. The length of the probation period can vary. In Australian higher education the probation period of non-executive academics is between three and five years and the probation period for administrative staff is between three and six months. Probation reviews are necessary in order to give feedback to new employees and they are given the opportunity to address any issues that may arise throughout the probation period (National Tertiary Education Union [NTEU], 2013). In some instances the probation period may be extended due to illness, change in job role or other factors, leading to staff in the organisation deciding that they cannot objectively evaluate the performance of the new employee within the agreed time frame. Another issue raised in the use of probation periods is when staff within the organisation decide prior to the conclusion of the probation period that the employee is not suited to the job. In this case a meeting of all those monitoring the new employee is generally organised to ensure there is consensus among the group and that the reasons for unsuitability to the job are fully job related. Where consensus is gained, the new employee is interviewed to get his or her perspective and to see if there are any mitigating circumstances, and the employee is counselled accordingly. If there is a clause within the contract of employment regarding the early termination of new employees then employment can cease (Macdonald, 2012).

5.12.1. The Exchange/Negotiation Perspective Throughout the recruitment and selection processes, applicants and selector will both try to extract sufficient information from the other so that they can make a decision to proceed with the processes or cease involvement. However, towards the end of the processes each party will need to decide what outcomes they want and negotiation will commence. Negotiation is a form of communication which allows both parties to agree to a mutually beneficial outcome. It involves determining what each party wants and what they are prepared to give in return. The goals of the negotiation involve: • Both parties feeling they have been treated fairly • Both parties will have had the opportunity to give their side of the story

Aids for Recruitment and Selection

163

• Both parties feel they have retained some control over the process • Both parties will have achieved an outcome with which they can live The goals as outlined by Spegel, Rogers, and Buckley (1998, p. 4) are a part of the exchange process that occur in the final stages of selection. At this point the selectors will already know the salary range they are prepared to offer the applicant, as well as other issues such as working conditions, personal and professional development and support for education. Ideally the successful applicant will have considered the minimum salary that he or she can afford to accept. In many instances applicants will be happy to be employed and accept a trade-off between initial low salary and longer-term security, development and benefits. However, where the applicant will add to the longer-term talent bank of the organisation, there may be some leeway for negotiation. In practical terms, the more research the applicant does the better. The research should include discovering the average salary range in the industry in which the organisation operates. This can be determined from information held by industry groups and by searching previous job advertisements or via consultant websites. Cekada, Helmrich-Rhodes, Minnick, Nelson, and Wachter (2012) suggest that in accepting a job offer young safety professionals consider a range of aspects. However, the principles can apply to all job salary negotiations. A checklist for applicant’s salary negotiations includes the following: • Home expenses such as mortgage, rent and insurance • Utility expenses including telephone, electricity and gas expenses • Medical expenses such as insurance programs, fitness and other health-related items • Food expenses including groceries, eating out and related expenses • Transportation expenses such as fuel, registration and maintenance costs • Other debts including credit card debts or loans • Savings such as investments and general bank saving accounts • Miscellaneous expenses such as clothing, hobbies, vacations and entertainment However, while the above are relatively generic, there are other issues to consider, such as the impact of location on the salary. Salaries may vary from city to city depending upon the comparative cost of living. If travel is involved then the appointee may get travel expenses or a company vehicle. Some organisations may provide health and dental benefits and many have retirement plans for staff. Thus, while both parties are expected to negotiate in good faith, it is in the interest of both parties to understand exactly what they are agreeing to. Once an offer is accepted then both parties are expected to comply with it rather than contest it. The selectors are committing the organisation to long-term costs, not just salaries or wages, while the applicant is agreeing to a long-term income base. Negotiating in good faith means that both parties are bargaining honestly, understand that commitment is required and that the outcome will be mutually agreed to

164

Bernard O’Meara

and respected. While some negotiation is covered by industrial relations, agreements and legislation, they may also be covered by civil, contract or other form of law. The best way to negotiate is to be prepared and understand that both parties have maximum and minimum limits (Quagliato, 2008). 5.12.2. Interviewer Preparation A meeting of all parties involved in the strategic acquisition of talent can highlight any negative factors that may impact on the processes. This includes a final review of the job analysis and selection criteria or KSAs, type of interview to be used, question types to be used and their sequence, testing or other aids to be used, references to be checked and a final review of submitted re´sume´s. The re´sume´ contains an applicant’s claim about themselves and forms the basis for questions to confirm or refute the information contained in the re´sume´. The nature of the job will also impact upon the questions to be asked and the aids to be used. Where a panel interview is to be used, each member needs to know their role, questions to be asked and the desired outcome of the selection strategy — a match between organisational strategic direction and talent needs with applicants. As first face-to-face impressions are made in the interview it must be right and its preparation is crucial. Where a person is being employed based on competencies required for the job, then questions and tests need to be designed around these. Alternatively, where a person is being employed based on organisational role requirements, then a differently designed and targeted approach needs to be constructed. Selectors need to be trained, subject to rigour and understand the consequences of the appointments they make. They need to be mentored and become skilled at identifying self-bias and need to be objective at all times.

5.13.

Summary

This chapter has highlighted a number of recruitment and selection tools or aids. These aids assist in gaining additional information regarding applicants that can be used to confirm or refute information gained from other sources. These tools are each weighted and complement other aids. There are a range of psychometric tests that selectors can utilise. These tests include aptitude, intelligence and personality tests and each must be used to focus on job-related criteria that are identified through job analysis. Emphasis was placed on the administering of tests by qualified staff who can accurately interpret the results and compare them to job criteria to determine fit between the job and organisation with the applicant. Each aspect of recruitment and selection must have an objective purpose and this includes testing, interviews, questions and assessment centres. Assessment centres

Aids for Recruitment and Selection

165

require applicants to undertake a variety of tasks that are assessed by a panel of psychologists and organisation staff. The tasks are job specific but provide the assessors with real-time feedback on attributes displayed by participants. These attributes can include problem solving, leadership, ability to work in a team, communication and presentation competencies. Direct observations can give a clear insight into predicting job performance and how to enhance the organisational talent bank. However, every aspect of recruitment and selection must be justified, valid and reliable. Each test must measure what it is supposed to measure and be consistent where applicants are retested. Validity and reliability are expressed as a correlation coefficient out of the number one. The higher the value the better. Errors can contaminate the validity and reliability of test data, and sources of error need to be considered. Sources of error can be deceptively simple, such as distractions, comfort, poor health and unrealistic time constraints. Applicants who do not adequately understand the purpose of tests or how to complete them may be uncomfortable in completing them and rendering their use less effective. If applicants cannot see the benefit of the test then such a test no longer holds face value. The use of games and computer simulations may provide organisations with a contemporary means of assessment especially those requiring levels of strategy, project management, business, engineering and other relevant areas. Social networking provides organisations with a means of identifying and communicating with potential new employees. This is a very quick and easy way of checking social network sites to see what current and potential staff actually think and what their priorities are. Trial periods of employment provide employers with the capacity to ‘see staff in action’ to help them make up their minds if there is synergy between the organisation and new staff. Discrimination can negatively impact upon the applicants’ experience, and if the experience is not good then it is more likely that applicants will not join the organisation. If they do join the organisation then they will review their preemployment expectations with reality and this may impact upon continuance of employment. Toward the end of the recruitment and selection processes, the process of negotiation in good faith commences. Both the employer and applicant will bring with them their own requirements for discussion, and at the end of the process each party must be satisfied with the outcome.

5.14. 1. 2. 3. 4. 5.

Review Questions

What are the roles and purposes of recruitment and selection aids or tools? What are the different tests available to aid in recruitment and selection? What is the purpose of reliability? What is the purpose of validity? A test with a validity coefficient of .5 means what?

166

Bernard O’Meara

6. How can the use of assessment centres benefit both applicants and the organisation? 7. Are reference checks of any real use? 8. How can social networking aid the selection process? 9. How can selectors ensure objectivity in the use of all selection aids? 10. Why is it important for both parties to list their mutual expectations? 11. Can the employment of ‘boomerangers’ aid in employment stability? 12. Should offers of employment be specific and inclusive? How and why? 13. What are the benefits and disadvantages of employment trial periods? 14. Do local organisations in your area use psychometric testing? Is this effective? 15. Why is the psychological contract important?

5.15.

Learning Activities

1. Survey organisations in your region and determine what aids they use in recruitment and selection. What weight is given to each component? 2. Find out how many organisations in your region use reference checks. Do they use them as pre-employment tools or confirmatory tools after a job offer is made? Are they used at all? 3. Look at your own social media websites or friends who have them? Do they convey a good message to employers looking through them? 4. Construct your own psychological contract with an organisation you would like to work for.

PART II APPLICANTS AND CANDIDATES

Chapter 6

Applicants and Re´sume´s Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Appreciate the role and differences between applicants and candidates • Understand the whole of life experiences that contribute to a person’s values, beliefs and work ethic • Value well-constructed re´sume´s as a form of information and filtering of candidates • Appreciate the psychological link that re´sume´s create between applicants and organisations • Understand the impact that culture has on applicants and organisations • Understand the need to research organisations and industries

6.1.

Introduction

This chapter focuses on strategic recruitment and selection from the perspective of those seeking employment. It commences by clarifying what constitutes an applicant or a candidate. Traditionally, people knew when they were candidates for a particular position. However, the impact of social media talent bank search engines means that candidates may not even know that they are candidates for a particular position or organisation. As people grow, gain experience, knowledge and competencies, they become more valuable to the social system and to organisations. The chapter highlights the types of experiences that helps forge a person’s values, beliefs systems and work ethic and how these can make an individual an asset to an organisation. In many instances, the first story of a person’s life and relevant experiences received by an organisation is via a re´sume´ or through the completion of an

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

170

Bernard O’Meara

application form. This first glimpse of a person’s story is very much about marketing the human capital a person has and this aids organisations to determine if there is a reasonable ‘fit’ between the person, the job and the organisation. The re´sume´ is a short concise document that is honest and reflective of a person’s relevant experience and knowledge. Its construction needs to be considered as, in many instances, if the re´sume´ is not appropriate then no interview will take place. Many people undersell themselves in their re´sume´ while others exaggerate — however the re´sume´ needs to be honest and indicative of the talent a person has. Cultural differences can cause confusion as people no longer work just in their home country. Instead people work in many countries, and change in employers and cultural sensitivity is appreciated in new employees as they become part of a global workforce. It is also not usual for students attending universities to be part of an international exchange program as this adds another dimension to their personal traits.

6.2.

Candidates and Applicants

A candidate is a person who is considered eligible to fill a vacant position. Such individuals only become applicants when they formally apply for the position via the application methods outlined by an organisation. The application process usually requires that to apply for a position people submit their re´sume´s to the organisation with the intention of going through the other processes such as interviews, completing application forms and testing. Until the person ‘declares their hand’ by following the desired application procedures, the person is still only a candidate. It is not unusual in the appointment of senior staff for these people or the organisation to seek informal discussions with each other. This allows both parties to determine if they should continue to the applicant stage. At very senior levels both formal and informal methods may be used to engage candidates. A candidate is a person who: • • • • •

May have the necessary qualifications to fulfil the role May have the experience to undertake the role May add value to the organisation’s talent bank May be interested in applying for the role May or may not know that he or she is a candidate An applicant is a person who:

• • • •

Believes he or she has the necessary qualifications to fulfil the role Believes he or she has the necessary experience Believes he or she will add value to the organisation’s talent bank Complies with the required application procedures

Applicants and Re´sume´s 6.2.1.

171

Does a Candidate Always Know That He or She Is a Candidate?

No. Often people only know they are candidates when they are contacted by the appointing organisation or by a consultant (head-hunter) or by a colleague or supervisor. The more strategically oriented organisations continually gather industry and competitor information and analyse this to determine any opportunities. Where an industry or sector has a relatively small number of organisations within it, competitors will know the desired human capital that each organisation has. They know the key staff of their competitors and the contributions made by such people. In the Australian higher education sector it is not unusual for a chancellor (Chairman) of a university with a departing vice-chancellor (president and CEO) to contact other chancellors and vice-chancellors to determine if they have executive staff who could fill the vacancy. In this government-based sector, cooperation is expected and the key promotable staff are generally identified early in their careers. However, a university with a senior staff member who is not considered promotable in his or her own organisation may be nominated for a job elsewhere in order to move that person on and allow more talented staff to fill the vacancy left behind (O’Meara & Petzall, 2007). Yet many current organisations are using new technology to identify candidates they have not even heard of. The use of social media has already been commented on, however, seeking candidates is another useful facet of the social media. Organisations such as LinkedIn have developed dedicated talent pool search engines such as Talent Pipeline to help organisations search social media sites. In November 2012, Facebook launched a social media job search application (app) and had more than 1.7 million listings. Other search engines such as Entelo, TalentBin and BranchOut allow candidate seeking organisations to search databases with over 30 million registered users. Of course there is a fee for such services but this is borne by the organisation seeking new staff (Kharif, 2012). As organisations are using social media much more frequently to find candidates than by traditional methods, it makes sense that job seekers keep their social media sites presentable to employers who view them. If social media users construct their sites to give the best possible impression, then such people may be contacted by likely employers they do not even know. Of course the reverse is also true and sites depicting what employers may deem inappropriate behaviour may not get contacted. Both potential staff and employing organisations are using social media sites for different reasons, and an opportunity may be created for job seekers if they take time to reflect on the traits they wish to portray through their websites. From an electronic perspective, job seekers may already be classed as job candidates for jobs and organisations they do not yet know of. Therefore, it is becoming increasingly common for people to become candidates just by having one or more social media sites. In a global village it is possible for employers in one country to identify candidates in other countries for the job vacancies they may have currently or may need to fill in the future.

172

6.3.

Bernard O’Meara

Life Experiences

Life-span development occurs throughout the entire span of a person’s life. Every interaction with family, friends and people within the community, organisations and government helps create a person’s values, beliefs and perspectives. Bronfenbrenner created a nested model that attempted to explain the impact of interaction on individuals. Environmental interactions included: • • • • • • • • • • •

Interaction with family Interaction with peers Interaction with those in classrooms Interaction in the workplace Interaction with governments, economies Interaction with, and impact of, the media Interaction with religious organisations Exposure to education Exposure to cultures Language ability Social norms

Thus, over a lifetime people continue to grow, develop and change. It is the culmination of all these factors that makes the person who applies for vacant positions (Sugarman, 1993, p. 10). This development occurs over different stages of life and each stage tends to build on a previous stage. During infancy a child learns to walk, talk and basic social skills. In middle childhood, a person learns more physical skills, getting along with peers and achieving a degree of independence. Adolescents enter more mature relationships and strive for financial independence through a career and further education. In early adulthood, the focus is more likely to be on longer-term relationships, family and taking on more social and work-related responsibility. Middle age means achieving work-related goals and achievements, developing leisure activities and greater civil and social responsibility. Later maturity sees people accepting a decline in physical prowess, preparing for retirement (Sugarman, 1993, pp. 96 97). As can be seen from the above there are several developmental stages throughout life and because each person develops at their rate, job applicants will be at differing stages of development. From a systems perspective, the interaction and development of people can be explained by their role in different systems and subsystems. These include: • • • • •

The family Education peers The education system Neighbourhood friends Social and sporting circles

Applicants and Re´sume´s

173

• Work-based systems • Financial peers Exposure across a range of systems and subsystems also aids in personal and professional development of each person. However, cognitive capacity, personality and talent will differ as an outcome for everyone. For some people the outcome will be developing and positive, however for others the experience may not be as positive — it may be detrimental. A positive cognitive learning experience for one person may be a severely restricted experience for other learners. The difference occurs when the context and learning style of each person is not taken into consideration (Boud & Walker, 1993). When people apply for a position with an organisation they bring with them their human capital. This includes their intelligence, knowledge, values, belief systems, creativity, innovation, talent and potential. The emphasis of human capital has shifted from an agricultural economy to an industrial economy to one where knowledge is a tradeable commodity and a source of sustainable competitive advantage (Crawford, 1991). The difficulty with assessing potential is determining the real and positive experiences that have forged a person’s way of thinking and their potential for the future from other positive and negative forces impacting them. Testing can indicate a measure of a person’s characteristics, such as cognitive ability, but it does not expose the positive and negative learning experiences that led to that measure. Hence, such testing is termed a predictor as it cannot guarantee future job performance or organisational fit. However, for the job applicants it is important to deconstruct their life-span learning to focus on what has constructively made them desirable by an organisation. This means knowing yourself as well as what made you the person you are and having a clear self-identity (Tennant, 1993). The summative story of a person’s life and relevant experience is reflected in the person’s re´sume´ or Curriculum Vitae (CV) which will be discussed later in this chapter. However, people do have the option to learn more relevant job-related material and there are a number of ways this can be achieved. The story of relevant learning experiences and achievement can take many forms but the applicant must carefully distil the key areas relevant to the job. Organisations get hundreds of unsolicited re´sume´s each week and it is a very timeconsuming process. As such, selectors reading submissions look for the core essence of each re´sume´ while electronic submissions can be scanned for keywords and act as hurdles to reduce the number of applicants.

6.3.1.

Undergraduate Placements, Consulting and Internships

Undergraduate students do not always have exposure to their chosen career prior to graduating. Certainly, in areas such as health, education and other programs there is a professional body requirement for students to work in the field. However, for

174

Bernard O’Meara

undergraduates who have chosen professions and careers without this requirement they are often not considered job ready. As a consequence of social pressure and employer requirements, universities and colleges are embedding simulations into their programs that allow students to experience real-life situations. These simulations develop skills that students will need to establish their careers, albeit in a controlled environment. Ehiyazaryan and Barraclough (2009) argue that simulations such as Venture Matrix construct a learning environment that requires students to engage and challenge themselves. In this instance students have to start up and run their own companies, trade with other organisations and cope with practical and strategic issues as in the case in real life. While universities and colleges use many such simulations depending on the faculty area of expertise such as business, IT, engineering, psychology, it is the findings in respect of the above research that are interesting. Employability can refer to students developing core transferable skills, the ability to reflect, develop self-confidence and self-efficacy. It can also refer to interpersonal communications skills, working in teams and problem-solving. Their findings included outcomes such as: • An increase in the ability of students to reflect, plan and think strategically • The development of negotiation skills • Improved learning transferability and articulation skills While these are simulations, they do in fact replicate real-world circumstances. Thus, as a learning tool, students can develop the necessary competencies that they will be expected to display once in the workforce. Where a strong bond exists between educational institutions and the wider community, employers can be involved in curriculum design and development which benefits all parties. The use of PBL and Work-Based Learning (WBL) can also dramatically influence the development of employability skills. These were outlined in Chapter 1. A collaborative relationship between employers and education institutions benefits both parties but especially the students. This occurs when organisations give students real problems to deal with and they must analyse, evaluate and synthesise material and make recommendations accordingly. Those students in the workforce and sponsored by their employer can combine theory and practice at the same time (Boud et al., 2002; Boud, Solomon, & Symes, 2003; Savin-Baden, 2001). Another excellent source of experience is undertaking placement (cooperative education) or internships with organisations. In these instances, students work for an organisation for an agreed period of time and undertake work as expected of a full-time employee in the role. Students are assessed by the employer with respect to the level of work quality and output, professionalism and suitability for a career in their chosen field. The students are also assessed by their academic coordinators on the transfer of knowledge, application of academic theory and the learning experience itself.

Applicants and Re´sume´s

175

In 1999, Leslie found that the commitment to placements and cooperative education was minimal as organisations gained little and the academic support for students was inconsistent. However, the trend towards cooperative education led to the creation of the World Association for Cooperative Education (WACE) which has worked with 913 institutions in 52 countries on developing cooperative education (WACE, 2013). It is unfortunate that many undergraduates do not see the benefits of undertaking placements or internships. In the case of University of Ballarat, 16 of 20 HR students who undertook a placement in an organisation were employed full time by that organisation once they graduated.

6.3.2.

Volunteering

Another opportunity for people to gain experience is to work as a volunteer in an organisation. While there are insurance and legal realities to be considered, many organisations will allow potential staff to work with them on a volunteer basis. Where volunteering is possible, the volunteer gains useful work experience while the organisation can monitor the person to determine if they were suitable for casual, part-time or full-time employment. At times, organisations will treat volunteers as work experience students, which may bypass some of the insurance and legal issues. Those prepared to volunteer their time to gain work experience provide an opportunity for employers. These people are driven and committed to personal and professional development and exhibit personal characteristics that most organisations would value. In many countries governments will subsidise organisations for employing and training staff. These opportunities are cost effective but they also bring together organisations and potential full-time staff. This gives the employer and employee an opportunity to explore more formalised work relationships during the subsidy period. Entry into organisations can also be through graduate programs and traineeship programs. The benefit of graduate programs is that they expose young graduates to a number of functional and operational roles. It is quite common for young graduates without work experience to know exactly what opportunities are available to them in the workforce. Many organisations enter into collaborative relationships with universities, colleges and schools. This allows the organisation to monitor student performance and it can create a working relationship with higher performing students and make job offers well before other employers have a similar opportunity. This is a strategic, collaborative and mutually beneficial relationship. At times organisations will join together to recruit staff such as apprentices. In the approach used by Trend Control Systems, a part of the Honeywell Automation and Controls Solutions group, Trend and 26 of its independent partner organisations pooled their resources to recruit apprentices. While Trend has had no

176

Bernard O’Meara

difficulty recruiting apprentices, its partner institutions that install Trend’s products were not able to attract apprentices. The collective of Trend and its partners needed apprentices to undertake similar roles in each organisation. The attraction of collective recruiting was clear as the selection criteria of an apprentice in one organisation was similar to, or the same as, those in the other organisations. The collective recruitment effort involving a three-month marketing campaign led to 550 applicants in an industry with a growing deficit of trained building-service engineers. Of this number, 50 were offered apprenticeships, with Trend employing 7 apprentices and the balance across the 26 partner companies (Pollitt, 2008). Sound strategic thinking led to benefits for all parties. 6.3.3.

Cold Calling

Cold calling means going to an organisation and leaving a copy of a re´sume´ in case a position is available or one becomes available. Emailing an unsolicited re´sume´ amounts to the same thing. As a general principle, candidates should target organisations where their research indicates they would like to work. It is not recommended that candidates send multiple copies of a standard re´sume´ to as many organisations as is possible. Depending on the nation and region, cold calling may be considered a last resort. However, every attempt to secure a job interview needs to be carefully considered and the re´sume´ customised accordingly. The same applies to cold calling. 6.3.4.

Employability

While candidates can enhance their educational qualifications, it still does not mean they are employable. Most vocational education courses teach students what they need to do in the workplace and how to go about it. Higher education courses focus on conceptual frameworks and educate students in concepts and how to learn through lifelong learning principles. However, when young adults or graduates join the workforce they may know what concepts to apply but not when or how. A teaching graduate may have the theoretical knowledge and some placement experience but they may not be prepared for school politics, coping with angry parents or dealing with a large number of students with different learning styles. Often they need a mentor to help them through the transition phase. The more work experience a student or graduate has, the more employable they are, as organisations do not need to train them in processes, procedures, hierarchy or accepting the responsibility of hiring new staff. The more highly desired applicants are those with knowledge and the capacity to gainfully apply it. As a nation, India is dealing with this at a national level through the NSDC (2013). It is common for organisations to deal with education institutions to customise programs to improve graduate and student employability.

Applicants and Re´sume´s

177

Developing useable talent can be expensive for organisations investing in new employees to make them employable while enhancing their knowledge and talent. Young adults and graduates need to gain as much useful work experience as they possibly can. Organisations prefer this demonstration of practical experience (Shikari, 2011).

6.4.

Constructing the Re´sume´

6.4.1.

The Cover Letter

Recruitment and selection are two critical roles to an organisation as they identify talent and meet both the job and organisation needs with those of applicants. The matching process begins when the organisation communicates to candidates that a vacancy has arisen and candidates tell the organisation they are interested in the position by forwarding details about themselves (re´sume´) to the organisation. identifying the right match of talent to the organization and the hiring manager that needs that talent is probably one of the hardest things under the umbrella of talent management. (Odom, 2013, p. 61) In most instances, candidates will write a brief cover letter explaining why they are applying and what their strengths are, and this is followed by the re´sume´ which provides greater detail for the selectors to consider in determining the strength of the applicant’s case. The cover letter precedes the re´sume´ and as it creates a first impression for the selectors, the layout and wording need to be considered so that it has the maximum impact upon those who read it. Readers should want to read more details in the re´sume´ and it is the cover letter that creates and sustains this interest. The cover letter is job specific and should not contain any irrelevant information. Irrespective of hard copy or electronic submission type, re´sume´s usually contain introductory material outlining why the person has submitted a re´sume´ — the cover letter. The seminal research and publication by Dipboye (1992) stated that assertive impression management approaches were more successful when included in the cover letter than if they were included in the re´sume´ itself. The role of the cover letter is to generate and sustain interest by the selectors and it is this first impression that counts. More recent research by Varma, Toh, and Pichler (2006) confirmed that ingratiation is still common and can result in applicants being rated higher than others and that self-focused tactics are more effective than other-focused tactics. As the time of selectors to read cover letters and re´sume´s is tight, redundant material should not be included in the cover letter. The person’s contact details are available in the CV or re´sume´ so they need not be repeated.

178

Bernard O’Meara

The role of the cover letter is to: • • • • • •

Generate and sustain interest Provide a brief and succinct overview of key relevant information Act as an introduction to the attached material Outline why the applicant is suitable for the position Outline strengths (talent) that the person can bring to the organisation If the applicant is currently employed, discrete contact preferences can be included

It is a document that outlines and argues the applicant’s case that he or she is suitable for the job and confirmatory information is attached in the re´sume´. However, the length of the cover letter should be brief and it is almost certain that a two-page cover letter would be read fully or at least scanned by selectors for key points. A brief but relevant cover letter is appreciated by selection panel members. In any event, both the cover letter and CV or re´sume´ should have the name of the applicant as a footer and the latter documents should have page numbers as well. This makes it far easier to recombine the documents if they are dropped or pages separated or incomplete documents printed out. The cover letter should be addressed to the nominated selector and in the first instance indicate which position the applicant is applying for. Often there can be a reference number attached to the job and this should be cited. The applicants need to declare that they ‘are applying’ or ‘wish to apply for’ the position. This makes a clear statement to the employer. Any initial enquiries by the applicant will have been made before the application is made and resolved. Applications can be withdrawn at any time by the applicants. Applicants should have access to all necessary information about the job they are applying for such as job title, job tasks, reporting relationships, levels of authority and responsibility, location and selection criteria or KSAs. The bulk of the cover letter should be spent putting a case forward that the applicant meets the necessary criteria. A position may require a person to hold a Bachelor’s degree in a nominated field and in this case a statement confirming the applicant has a degree in the specified field can be made. Where a person exceeds the educational requirements, this can be stated but care needs to be taken to avoid being seen as over qualified for the job. Once each of the key selection criteria have been matched to the applicant’s background, qualifications and experience, a statement can be made stating that further detail is included in the CV or re´sume´. Where the applicant has researched the organisation on the Internet, a comment can be made to that effect. The applicants will generally conclude by thanking the selector for the opportunity to apply for the position and that they hope to have the opportunity to attend an interview where they can provide far greater detail. Generally, cover letters are positive and constructive.

Applicants and Re´sume´s

6.5.

Preparing the Re´sume´

6.5.1.

CV or Re´sume´

179

A CV is a detailed in-depth document outlining all aspects of a person’s work history and related areas. However, while organisations seek applicant information, it is more common to see a request for a re´sume´. This is a shortened version of a CV and provides a summary of a person’s work history and related areas. It is meant to focus on the relevant aspects of a person’s employment. Employers seek re´sume´s in order to assess its contents against the criteria for the job to determine suitability and fit. Applicants send their re´sume´s to employers in the hope that the selectors will deem the applicant suitable for the job and organise an interview accordingly. As many organisations receive hundreds of unsolicited re´sume´s each week they do not have time to review a full CV, instead the volume of incoming information necessitates a summary of key points of applicants’ backgrounds — a re´sume´. Applicants use a CV or re´sume´ as a marketing tool where they try to market their talent to different organisations. As such, the document needs to be accurate, contain verifiable information and be an honest overview of the applicant’s knowledge, competencies, experience and potential. Reuter (2013, pp. 61 62) takes the idea of marketing yourself and provides five marketing tactics to aid in marketing yourself to an organisation: 1. Recognise your skills and abilities. The more you know about yourself the more effective your marketing will be as you know the talent you have 2. Know what the market wants. Much of the material about market demand can be found on the Internet, in other forms of media, social networking sites and peer-to-peer discussion 3. Determine if your product (you) meets the market demands. Candidates can list their strengths and weaknesses and determine if there are any gaps 4. If a gap exists, develop a plan to fill it. This could be done via more education or training, gaining experience or developing the talent required by employers 5. Market your product as you would any other product. Draw on your strengths, your learning experience, your aspirations and the talent you know you have In order for selectors to read a re´sume´, applicants first need to get the cover letter right. This then acts as an introduction to the outline of information in the re´sume´. In order to get an interview or successfully continue through the recruitment and selection process, the re´sume´ must be right. Applicants have opportunities that they can exploit when preparing their re´sume´s. They are a part of an interactive system where they can gain useful information and use it accordingly. Irrespective of how the applicant learnt of the vacancy, they should at least know the following: • The name of the organisation • The industry or sector the organisation is in

180

Bernard O’Meara

• • • • • •

The title of the job The key role tasks and responsibilities The key KSAs or selection criteria The geographic location of the job Reporting relationships Opportunities for personal and professional growth depending on the size and orientation of the organisation • Wage or salary details Some or all of the above characteristics should be known and these can be used to benefit both the candidate and the organisation. If the name of the organisation is known then candidates can research it via the Internet to learn more about it. When an organisation receives a re´sume´, its staff commence analysing the data to determine fit. Candidates should assess their fit with the organisation. A little research on the Internet can inform candidates about the size of the organisation, the sector or industry it works within, its strategic mission and direction, changes such as growth or entering new markets and also if it ‘talent farms’. Talent farming aims at reducing employment costs by investing in current and new staff over a longer period such as five years. It means analysing its strategic direction and developing staff talent now for use in the future. It goes beyond career mapping and succession planning as it matches and develops talent that the organisation will need in the future. The talent need not be job specific, it can be organisation specific instead (Odom, 2013). Such declarations of investing in people can be compared to annual reports where the number of staff turning over is reported. If the organisation does not have a good reputation in the community then further research may need to be undertaken by checking social media sites for information. Speaking to friends and family may provide useful information. More information about the industry or sector the organisation is in can indicate how these have fared throughout the Global Financial Crisis. Clearly, if an organisation invests in people and is financially resilient to external forces, it gives the candidates an insight into the strategic orientation of the organisation. Does the organisation view staff as assets or as liabilities? Most candidates would prepare to work in an organisation of the former type but circumstances may dictate that work in an organisation of the latter type may be required. The job title can indicate to candidates if the job is in a core business area and the job tasks can indicate where the position sits in terms of hierarchy. This can be confirmed if reporting relationships are known. The KSAs or selection criteria may indicate if the organisation is seeking to employ staff on a job-specific or organisation-specific role. This indicates to candidates what the selection criteria priorities are. There will be job-specific criteria to be met but additions such as ‘excellent promotion opportunities’ may suggest that candidates will have to fit with strategic organisation-specific aspects, i.e. management and professional growth, in the future.

Applicants and Re´sume´s

181

The more information available to candidates the more they can target their re´sume´ to suit. A properly constructed and informed re´sume´ will be appreciated by selectors rather than poorly written re´sume´s with minimum relevant material. The job seekers can distil their life experiences, education, knowledge and strengths into a targeted re´sume´ that gives the organisation all the relevant information its staff need to determine if the applicant should be interviewed. If the re´sume´ is not well crafted and targeted towards the selection criteria then there is a higher probability that the selectors will not consider the application further. It is useful for job applicants to keep copies of relevant material that might be used in a job application. If a job advertisement states that applicants must have a specific qualification, then applicants can expect that a copy of the qualification or evidence, that was conferred upon them, will be sought by selectors. Another aid is making a timeline of key aspects of a person’s life. At times people forget important aspects of their lives or fail to see their relevance. However, a folder with copies of awards, qualifications, training programs successfully completed, references, sporting and academic achievements and other milestones can make the job of creating a re´sume´ much easier. The better a candidate knows himself (or herself) the more he (or she) reveals about how he (or she) communicates, leads, manages, motivates and relates in a team environment. (Nutter, 2013, p. 76)

6.5.2.

Which Type of Re´sume´ to Use?

There are a range of different types of re´sume´s and hybrid re´sume´s from which to choose; however, only two main types of re´sume´s will be discussed along with one hybrid type of re´sume´. Each type of re´sume´ has similar characteristics. • • • • • •

They are brief They are focussed on the applicant and the job They are logically sequenced They contain relevant information for the selector They accurately and honestly reflect the applicant Presentation and style are aesthetically pleasing

While re´sume´s have similar characteristics, they can present the same information in different formats depending on the job and the organisation.

6.5.3.

Traditional Re´sume´ Approaches

The traditional re´sume´ has a fairly standard format in that it includes personal and contact details. Education and work history follow the personal details and both are

182

Bernard O’Meara

given in chronological order as are achievements. This type of re´sume´ is easy to read and follow as it is in chronological order. The dates of employment, the places of employment and the roles and responsibilities are all in sequence. In 1992, Dipboye noted that an issue with the traditional re´sume´ is that selectors may expect to see a smooth flow of dates in order. However, where there are gaps in the chronology, selectors can clearly see a variance which would generally be discussed in an interview or by contact with the applicant to clarify the discrepancy. Dipboye (1992) reported on research that contrasted the traditional re´sume´ with a functional re´sume´. The latter type of re´sume´ de-emphasised dates and positions and instead highlighted qualifications, skills and accomplishments. The research showed that the recruitment and selection staff rated the functional type of re´sume´ much higher than they did the traditional re´sume´s. While the traditional re´sume´ style is still in use, its format is used far less frequently. Elmore (2012, p. 57) suggests that contemporary re´sume´s should avoid the following: • Do not supply a list of job duties as employers want to know you did your job rather than what you did • Avoid a ‘one-size-fits-all’ approach, instead tailor the re´sume´ to each position applied for • Make the document appealing and avoid unattractive formatting, separate sections, and check spelling and punctuation • Do not over generalise qualifications and be able to defend everything on your re´sume´ • Avoid focussing solely on what you want, instead outline the talent you can bring to the organisation • Do not fail to match the re´sume´ with what is on your social media site However, re´sume´s should include • Quantifiable and verifiable information • Highlight skills and achievements that separate you from the crowd • Match your re´sume´ to the job Spector (2013) agrees and suggests that applicants should outline their accomplishments, learning experiences, and summarise who they are in one sentence. He suggests that applicants should outline their core skill sets in bullet form if possible. The suggestion by Spector to summarise who the applicant is in just one sentence is a means of getting to the core succinctly. Most people would take time to express themselves verbally or in writing, but in a cover letter or re´sume´ the core questions answered in a re´sume´ are • Who am I? • Why am I applying? • What talent or benefits can I bring to the organisation and job?

Applicants and Re´sume´s

183

• Can I prove what I am saying? • What do I hope to gain by joining the organisation? • Who can vouch for what I am saying? The traditional re´sume´ is set out in chronological order and while the above questions can be included in this document, the format and style are scripted around the focus of here is what I have done. The focus is not on here is how and why I performed as I did. It is the latter focus that is rated more highly as it gives an insight into the person and their talent and potential or their human capital. A typical traditional re´sume´ may contain the following sections: Personal and contact details: • • • •

Name Address Telephone contacts Email contacts

Education: • School and university courses in chronological order and/or achievements Work history: • Current employer, job title, responsibilities, date joined and if/when employment ceased, reporting relationship (sometimes given) • Previous employers with similar format to the above Achievements: • It is common to list these separately Hobbies and sporting activities: • Where these are not listed in the personal and contact details Referees: • In most cases the applicant had sought approval from colleagues to list them as referees This type of re´sume´ has often been viewed as sterile because the traditional re´sume´ focus was on what you had done and when — not how or why. Where the job has specific requirements such as travel, this should be included in the cover letter. There are of course exceptions to the script depending on job requirements.

184

Bernard O’Meara

Outcomes such as timeliness and output are likely to be discussed during the interview or briefly referred to in the re´sume´ or cover letter such as all timelines were met or all targets were achieved. Based on the outline above, it is easy to see why Dipboye (1992) suggested that any variance to the timelines would be highlighted and would be investigated accordingly. However, a question in an interview about a gap in the timelines could cause applicants to be defensive as they explained the irregularity. The traditional re´sume´ was expected to show flow and consistency and variances were investigated due to the timeline rigidity, but could still be successfully explained in an interview or through follow-up with referees. In contemporary society and in the transition to a knowledge-based society, where knowledge is a tradeable commodity and provides a sustainable competitive advantage, organisations are trying to capture the intangible. It is relatively straightforward to list the jobs an applicant has undertaken and this can be measured by different metrics, but it is difficult to determine the human capital of individuals. Therefore, a different approach is needed where applicants can infer the nature of their human capital in writing. In some cases organisations do not require re´sume´s as they can find out more about applicants through online and paper-based testing and assessment centres. This is in line with the preference for organisations to know ‘who’ is joining their organisation not what they have previously done. 6.5.4.

Graduates and Those with Limited Work Experience

In many instances graduates and people with limited work experience do not know what they can do but cannot always tell selectors the benefits they will bring to an organisation. Hence, the increased use of assessment centres in graduate and young adult employment. Graduates can refer to their learning experiences at universities and provide results for their academic studies, but they cannot demonstrate how they will use this knowledge or how they will build upon their learning experiences. In many instances when school leavers undertake a higher education course they do not know what career to choose for themselves. The rise in graduate programs to expose graduates to different kinds of work helps them get a better idea of what they want to do in future. In interviews, selectors can use behavioural questions to determine how the graduates have dealt with challenges in their limited work life. They can use situationalbased questions to get the young adult to hypothesise how they would react in given situations. But what gets graduates and those with limited work experience to the interview stage? 6.5.5.

The Targeted Re´sume´

For graduates and those with limited work experience the targeted re´sume´ can help fill the gap between wanting to apply for a position and the interview. The targeted re´sume´ is commonly used by graduates, those with limited work experience and

Applicants and Re´sume´s

185

even by upper levels of management. The targeted re´sume´ is similar to the functional re´sume´ outlined by Dipboye (1992). This document has the following characteristics: • • • • • • •

It can be used by anyone with or without a work history It targets the individuals specific human capital It targets the selection criteria of the position It identifies the strengths of the individual It identifies the potential the person brings to the role It enhances work history It tells a story about one specific person

As mentioned earlier, each person develops as a consequence of their interaction with others in the community and the workplace as well as with interaction with organisations. But applicants need to reduce their story to a brief representative story of themselves. Thus, as people learn and develop through learning experiences and interaction, it would be sensible to highlight consistent behaviour across the range of learning opportunities. Irrespective of whether a person has work experience or not they engage across a broad range of activities that help shape their character. These learning experiences that help us to develop include: • Work life, where we interact with colleagues, where we work in teams, where we undertake training, where we realise our aspirations, where we use our interpersonal and communication competencies, where we influence others and where we develop a reputation and earn respect • Sporting activities, where we play in teams or compete individually, where we may take on leadership roles or coach and mentor others, where we may become goal-driven • Social activities, where we engage with others and join in group activities such as entertainment. We also learn to interpret social cues and learn what behaviour is appreciated or deemed unacceptable • Education, where we learn through programmed activities at primary and secondary schools, colleges and universities. We gain knowledge and learn how to apply it. We may be required to write essays, reports, sit exams and make presentations either as individuals or in teams. We learn how to learn, analyse and evaluate material. We may be involved in mentoring programs, leading groups or tutoring other students and undertaking extracurricular activities. We may be involved in international exchange programs and we may work at the same time • Other relevant activities, these include taking on civic responsibilities, engaging with communities, support charities and raise funds, become volunteers or have hobbies that involve others such as flying model aircraft, horse riding and fishing These are examples of where we develop and where we display our human capital. Unfortunately, when we apply for a job most people only think of their work

186

Bernard O’Meara

experience and miss the rich opportunity to comment on other areas that we have developed from. Often it is the characteristics we display in these areas that employers want to know about. Consider the example of a person who applies for the job of team leader in the Quality Assurance department of a manufacturing organisation. The person has worked in the area and sees the opportunity to take on further responsibility and move up the career ladder. The person has had no leadership experience in the workplace. The organisation may seek a person with proven leadership and team skills rather than a person with less experience. However, a review of the person’s non-work related activities shows that she is captain of the local swimming team, regularly organises things for herself and her friends to do on weekends and she is a member of the young achiever program in her region. She volunteers as a fundraiser for the Red Cross Society and at the university where she is studying she works in teams to make presentations and written submissions. In this case the applicant demonstrates consistency across a range of areas which are non-work related but she may well be capable of filling the vacancy. If the applicant had only limited leadership or team-based experience, such as helping out at a fundraiser once, then the various aspects of her life would not show consistency. It would not mean she could not fill the position; however, for the sake of reliability and validity, employers seek confirmation of a consistent pattern of behaviour across a person’s different aspects of life. Where people display consistent patterns in various aspects of their lives, then it tends to suggest that characteristics are a part of who they are. Appendix H highlights where people develop and display human capital. The targeted re´sume´ highlights patterns of consistency and flags these to selectors. Those with work experience can include these patterns in their re´sume´s but those with limited or no direct work experience can still highlight their potential and willingness to grow and develop. The re´sume´ determines if you get an interview and if you meet the selection criteria or KSAs. As the targeted re´sume´ focuses on highlighting the applicant’s strengths and compares these with the job requirements, the makeup of the re´sume´ is different in purpose and function to the traditional re´sume´. Also the cover letter is oriented towards illustrating potential through consistent patterns of behaviour. The cover letter introduces the reader to the strengths of the applicant, and where the person has limited work experience, the strengths are put in the context of transferable skills and knowledge. The letter is followed up with a career objective stating why the person has applied for this particular job with this specific organisation. Hence, it is tailored toward an individual organisation. The inclusion of a career objective indicates to the selectors that the person is serious about their career or employment opportunities. An example of a generic career objective may be: I seek a challenging and rewarding position (in…) with a dynamic organisation committed to personal and professional development.

Applicants and Re´sume´s

187

This example is constructed and worded specifically to establish a positive psychological state with the selector. This state reflects the applicant’s view of the organisation in very positive terms, i.e. ‘dynamic and committed’, and indicates that the person believes a ‘challenging and rewarding job’ can be found within the organisation. The career objective can precede the re´sume´ on its own page or can be placed at the top of the main text of the re´sume´. Experienced selectors will view it as an applicant’s statement of purpose and will be aware that this could be a form of ingratiation as outlined by Varma et al. (2006). Less experienced selectors may find the positive and constructivist nature of the career objective to be more engaging and warrant a review of the re´sume´. Where a career objective is used it needs to be worded carefully and informed by genuine purpose and intent, but can be a useful introduction to the applicant. The targeted re´sume´ is constructed to provide information and as such it should answer many questions that selectors could have. For example, in the Personal Details section an applicant could state: Relocation — In the pursuit of my career objectives I am willing to relocate as and when necessary. Where there is a possibility that relocation might be considered, the applicant should consider this before forwarding the re´sume´. In any event, many new employees commencing their careers with an organisation may find that at some point relocation is required, especially if they join a global organisation or a national organisation operating at different locations. A similar approach can be taken with a person’s mobility where the new employee will be expected to travel to different locations. The following statement indicates to selectors that the person is mobile and able to travel: Mobility — ‘I have my own reliable transport’ or ‘I am able to access multiple forms of transportation if I am required to travel’. If applicants research on the job and the organisation, they can anticipate questions that selectors may have, and by inserting a sentence as illustrated above such questions can be answered so that the reader can focus on the applicant’s job suitability. An overview of a targeted re´sume´ is given in Appendix I, and provides examples of what is put into the targeted re´sume´. All material included in it needs to be honest and accurate but should include achievements the applicant has made. The targeted re´sume´ has a focus on human capital rather than the job tasks undertaken by the applicant. This meets the needs of employers wanting to know more about how the person did their job, their achievements and outcomes, how they grew and developed from each learning experience and talent and potential they can bring to the organisation. This aids in identifying talent potential for organisations and selectors are better informed in preparing for interviews and testing.

188

Bernard O’Meara

In order for the re´sume´ to be useful it should not contain any unsubstantiated statements. In most areas of life, evidence needs to be provided to support any claim. In the case of the targeted re´sume´ this is also the case. An applicant may make a claim that he or she works well in a team environment. However, this by itself is a statement and there is no evidence to support it. The statement needs to be supported by evidence or proof. Refer to Appendix I for a re´sume´ worksheet. Appendix J provides a number of competencies and traits that employers may find desirable. Elmore (2012), Spector (2013) and Jacobs (2013) suggest that re´sume´s should be brief, defensible, provide measurable positive results and outline the applicant’s core skills. Employers want to know what you have done in terms of achievements and how you did it so they can discern what talents you will bring to their organisation. Roychowdhury (2012) argues that while it is recommended that re´sume´s should be minimal in length (generally two pages for graduates and new job commencers), each section has its own purpose, including a section on hobbies. In this case it is argued that applicants need to show they are well rounded, have a balanced life and that a small section on hobbies highlights the personal rather than the professional life. In recent times, an emphasis has been placed on the work/life balance of staff as external pressures such as the Global Financial Crisis and the decline of European economies impacts heavily upon those in the workforce. Roychowdhury’s argument is quite valid, as selectors need to get a holistic view of the person they want to employ and their talent which will be added to the organisation’s existing talent bank. It is important to remember that the sections of any re´sume´ should contain relevant information. However, the interpretation of the information needs to occur within the context of the job requirements. Inexperienced selectors should avoid making assumptions or drawing inaccurate inferences. Instead it is appropriate for the applicant to answer questions that are job related and non-discriminatory.

6.5.6.

The Hybrid Re´sume´

A hybrid re´sume´ is one that combines two or more re´sume´ types into a single coherent document. At one extreme, graduates and job starters with limited work experience will use the targeted re´sume´ because it does not require solid work history to be included. Instead it focuses on the human capital a person has rather than job tasks they have undertaken. In this case there may be no work experience at all. At the other extreme is the traditional styled re´sume´ which, as discussed earlier, has a focus on chronological order, job tasks undertaken and places where the applicant has worked. The hybrid re´sume´ combines the aspects of both types as it can highlight the human capital of the applicant as well as his or her work history. If constructed carefully, it can be quite appealing in the way it portrays the applicant. There are two ways this can be done.

Applicants and Re´sume´s

189

The first method is similar in nature to the functional re´sume´ as outlined by Dipboye (1992) which allowed for a section where applicants could include a ‘qualifications brief’. This brief allowed applicants to highlight previous accomplishments despite a lack of formal qualifications. However, the person showed that he or she could bring practical knowledge, skill and abilities to the job. This method allows applicants to outline their work history within the hybrid re´sume´ and combine it with evidence that supports the applicant’s claim to having desired human capital. This focuses on job successes through the use of their competencies, traits and verifiable outcomes. In this case the applicant can include a summary of human capital either before or following the work history section. An example of this is where a person has had a leadership role in the workforce and perhaps in other aspects of life as well. The person can state in the summary that he or she was appointed to this role because he or she displayed appropriate qualities which were recognised by the employer. The emphasis changes from having the potential to be a leader to one where the person can exploit the benefit of having been in a leadership position. The applicant can then highlight how he or she successfully undertook the role and perhaps refer to how he or she developed from this experience and how it affected other aspects of his or her life. The applicant can highlight this experience and draw on subsequent experiences to show that it became a consistent pattern across aspects of his or her life. This can be used to demonstrate that the experience added value to the person and hopefully he or she can demonstrate how he or she added value to the role. This may infer that the person grows personally and professionally from such learning experience. The summary then allows the applicant to use the work history section for outlining achievements, outcomes and quality of work instead of listing the job tasks that were undertaken. The summary shows personal and professional growth and development while the work history section outlines how the applicant conducted themselves in the job and the practical application of the human capital. The second method combines the applicant’s human capital with the job outcomes in the work history section. While this may lead to repetition, at times it gives the applicant the opportunity to mesh competencies and traits with each role undertaken. An example of this combination is where a person states they supervised a mine maintenance team. The applicant can allude to outcomes such as timeliness, minimum down time for mining equipment but then outline the traits the person used to succeed in the role. This outline need not be lengthy but a number of dot points can be used to provide evidence for claims of success. However, if the applicant has had a number of supervisory roles throughout his or her career then there is a risk that the applicant will repeat listing the same human capital qualities used to be successful in these roles. In this case a central repository to provide evidence for being successful in such roles can be used to cover all human capital aspects. Otherwise the person will just repeat making the same claim of success in each role. All individuals need to construct their re´sume´ in their own way so they are comfortable with the outcome and how it reflects their story. There are guides that

190

Bernard O’Meara

applicants can use to construct their re´sume´, but as argued by Nutter (2013), the best person to know his or her story and tell it is the person himself or herself. 6.5.7.

The Inclusion of Photographs

Research has shown that physically attractive applicants are more positively evaluated by selectors compared to those considered less attractive. However, where organisations seek to portray a particular image, they tend to employ staff who fit the image. At times an organisation may request a photograph of the applicant for security purposes or job-specific requirements. A model agency would require photographs of applicants to match with photographic assignments. In most instances applicants are advised not to forward photographs with a re´sume´. Another reason not to include a photograph is that inexperienced selectors may relate the photographic image with expected patterns of behaviour. In this case the selector may seek confirmation of this subjective link and reject the applicant if this link between image and behaviour is not confirmed. This is discriminatory and will eventually negatively impact upon the organisation’s image and reputation (Hurley-Hanson & Giannantonio, 2006). It is generally recommended that material presented to selectors such as re´sume´s should focus on matching experience and human capital with the job and organisation requirements. The addition of more subjective material for assessment, including a photograph that is not required for legitimate organisational or job needs, can distract the reviewers from the more important task of perceiving applicant fit. Therefore, the inclusion of a photograph with a re´sume´ is best avoided. 6.5.8.

Creative Re´sume´s

The re´sume´ outlines your assets and is therefore a very important document. This is the applicant’s key marketing tool and it is what gets the person an interview. However, Ciampi (2012, p. 12) suggests that 75% of re´sume´s are discarded due to spelling and grammatical mistakes. Another 20% are discarded because of formatting and cites the use of PDF, HTML and Word text as potentially impacting successfully passing the initial screening process. Only 1% will pass an initial screening by computers. The role of the computer is to seek out keywords in re´sume´s but will also highlight other errors. An applicant tracking system (ATS) will provide selectors with a summary that removes bias-causing problems, tracks equal employment opportunity compliance and performance. The ATS can be quite effective in strategic talent acquisition as it can provide a clear overview of an applicant’s talent which can be compared to talent deficiencies within the organisation. Thus understanding how organisations track applicants and divide them into categories such as Suitable, Unsuitable and Possible can aid applicants in preparing their re´sume´s accordingly. It is the contents of the re´sume´ and how it is presented that are important.

Applicants and Re´sume´s

191

The context of the re´sume´ is important. It is suggested that over one billion re´sume´s are screened annually worldwide (Arnulf, Tegner, & Larssen, 2010, p. 221). With this in mind it makes sense that organisations need to reduce the time spent reviewing individual re´sume´s. Even a very small organisation can be swamped by the volume of re´sume´s received even if a vacancy does not exist. Therefore, applicants need to carefully consider and word their re´sume´s to give them the best opportunity to be interviewed. The consideration includes format and style of the re´sume´ as well as more mundane things such as the colour of the paper the re´sume´ is printed on. Ciampi (2012) suggests that being overly creative in creating a re´sume´ that is initially screened by a computer may, in fact, be counterproductive. It is common for those applying for marketing or advertising roles to believe that to make their re´sume´ stand out from the others it needs to be creative in presentation. Arnulf et al. (2010) site research that indicates that re´sume´ evaluation is not only idiosyncratic but may be scanned by a human reviewer for as little as 45 seconds. They also cite research highlighting that re´sume´s printed on coloured paper are judged negatively compared to those informed and well-written, printed on white paper. Further, they suggest that re´sume´s prepared by agencies were rated more attractive than those written and highlighted by the applicants themselves. The outcomes of their own research confirm that the more creative the re´sume´ the lower it is ranked. They suggest to overcome any unintentional bias organisations could require that re´sume´s be submitted digitally and registered in a database. Candidates are advised not to attract attention. by means of visual presentation aids other than formal layouts. (Arnulf et al. 2010, p. 228) However, the researchers do acknowledge that their research is not universal and that individual re´sume´ reviewers may be positively affected by the more ‘creative’ aspects of the document. Selectors around the globe are under pressure due to time constraints, budgets and talent banking. It is unfortunate that the high volume of re´sume´s received by organisations each year actually inhibits their ability to identify and recruit talent from the community. Applicants can adapt to this situation by using keywords in their re´sume´ and targeting it to their strengths matching those desired by the organisation. Reading job advertisements, wherever they may be, requires candidates to ensure they fully understand the job and organisation requirements. As the job advertisement is based on selection criteria identified through job analysis and talent gaps or talent farming, it is important to distil the essence of each vacancy needing to be filled. Applicants can search the Internet and social media sites as well as competitor and industry-based material to ensure they fully understand the position and can fulfil the requirements accordingly. ATSs can also identify those applicants who apply for multiple positions with an organisation. If each document submitted is consistent and matches the needs of the

192

Bernard O’Meara

job/organisation with those of the applicant, then this will be highlighted via any respectable ATS. However, where applicants apply for multiple positions for which they are unsuited then this will be highlighted as well. Another aspect impacting upon the use of the re´sume´ in gaining an interview according to Cole, Rubin, Field, and Giles (2007) is the recruiters’ attributions regarding the applicants’ re´sume´ content that determines the rating of an applicant’s employability. Once a re´sume´ is received by a reviewer, it is read in the context of the job and organisation needs. It is the reviewer who matches these pieces together via emphasis, priority and interpretation and decides if an interview is warranted. Organisations that try to avoid reviewer bias are those that use computer screening, pre-interview testing or assessment centres so that as much of the process is as objective as possible prior to the interview stage. In these cases the degree of creativity in constructing a re´sume´ has, hopefully, only marginal impact. 6.5.9.

False Re´sume´s

Most re´sume´, unfortunately, do not provide an honest reflection of the candidate. Candidates may exaggerate one of more aspects of their re´sume´. These can include inflated salaries and wages, longer employment duration, higher levels of authority and responsibility and reporting relationships. References may be faked or the names of real referees substituted with the names of friends and colleagues who will provide excellent references — guaranteed. Candidates can also fake responses to personality-based selection measures (Griffith, Chmielowski, & Yoshita, 2007). At times applicants will unintentionally include errors in their re´sume´ and any inconsistencies should be raised with them by selectors. However, selectors browse re´sume´s looking for inconsistencies such as the stated salary compared to the job type or level. Selectors also compare data from re´sume´s with written application forms to identify inconsistencies between the two. A re´sume´ in a standard format used by consultancies may also need to be checked especially where the consultancy is known to prepare re´sume´s for fee-paying individuals. In such cases the consultancy will know the keywords to be used that will bypass initial electronic scrutiny. Where deliberate discrepancies are identified, doubts are raised about the honesty and integrity of the applicant and the validity of the rest of the information in the re´sume´. Applicants need to ask themselves if they would employ a person who has lied because that is the question the selectors will ask themselves. Selectors will prefer applicants who are honest and can easily explain aspects of their re´sume´s. 6.5.10. Necessitated Re´sume´s Organisations may provide re´sume´ templates on their websites in order to provide consistency and to make evaluation simpler. In these cases the same amount of

Applicants and Re´sume´s

193

information needs to be provided but in the required format. If the template does not provide the opportunity to present all relevant material for some reason, then this needs to be raised with the organisation. There are a large number of generic templates available on the Internet and the use of these needs to be considered as to appropriateness. Even the re´sume´ outlines in this text should not be used without careful consideration. Each re´sume´ needs to tell a story about a person’s development and each should be unique and individual. Where the applicant is distant from the organisation, a video re´sume´ may be required. This increases the level of selector subjective evaluation as they are not just reading the re´sume´ but are looking at its creator and listening to how it is told. In this case consideration needs to be given to interruptions, setting, noise and lighting. In the anticipation of any selector bias, thought needs to be given to dress, body language, speech and any mannerisms. It is a good idea to rehearse this in front of colleagues or family before producing the final version. Colleges and universities that include mock interviews within their programs can help get this right.

6.5.11. Re´sume´ Hooks A re´sume´ hook is a device that invites the reader to ask a question. It is possible for applicants to manipulate the interview via the use of a re´sume´ hook. This can be particularly effective when an inexperienced reviewer or interviewer is involved in filling the vacancy. In previous sections, the role and function of the re´sume´ was discussed as being a marketing tool for the applicant and telling that person’s story succinctly and in a very appealing manner. However, a re´sume´ hook leaves a piece of information out of the information so that the only way an interviewer can find out about the missing piece of information is to interview the applicant. While consistency is vital within the re´sume´ and while it should prove any claims asserted, there are occasions when the writer can deliberately omit a piece of information that answers the reviewer’s question. In most instances such information is included as given in the following example: I was promoted to the role of marketing manager as a consequence of my knowledge of, and engagement with, our customers developed over 25 years. This is further evidenced by consistent positive client feedback regarding my performance. The claim is asserted and support for it given. However, claim and support are given together in the majority of instances throughout the re´sume´. But in one or two instances the support is not given. An example is I increased sales by 35%. In this case there is a lack of consistency because the claim is asserted but no supporting evidence given. This leaves the reviewer wondering how did he or she do that? Because of the inconsistency compared to other claims and support, there is no support given in this case. If an inexperienced reviewer or interviewer is involved he or she may ask the question that is left hanging.

194

Bernard O’Meara

If the question is asked during an interview, then applicants can respond by predetermined answers that highlight their strengths and potentially lead the interviewer away from more sensitive areas the applicants want to avoid. Skilled and experienced interviewers may still indulge the applicant by asking the desired question(s) but will understand the methodology employed and its purpose. It is important for talent acquisition staff to understand how and why re´sume´s are prepared and how they can be used to direct and manipulate the interview at times. It is also important for applicants to understand what organisations seek from a re´sume´ and the processes used to evaluate them and determine if an interview is warranted. If readers compare the crafted re´sume´ and hooks that will be screened by computer software and then potentially scanned by a selector for less than a minute, the approach is far superior to a rushed re´sume´ that contains very little relevant information. To get an interview to get a job it is worth spending time preparing a re´sume´.

6.6.

Research on Organisation and Industry

There is a wide range of reasons why people apply for vacancies with certain organisations and not others. Research by Van Birgelen, Wetzels, and van Dolen (2008) illustrates that candidates seeking employment are attracted to corporate websites that are well constructed, easy to use and are targeted at their level. It is also suggested that organisations create several sites to meet the needs of candidates across the broad spectrum and not a single site for all candidates. If employers construct websites properly, they can create the right image and this encourages interest in employment. Organisations that already have an excellent reputation in the community need to reinforce that image on their websites as candidates should visit their websites to determine interest in joining the organisation. The construct of an appealing website by organisations described as preferred employers can ensure that job candidates affirm their intention to apply for jobs by exploiting organisation’s strengths on the website. An applicant’s intention to apply for a job can be enhanced where the perceived job and organisational characteristics are consistent with the organisation’s attractiveness. When candidates evaluate a job vacancy, they attach importance to both these characteristics, and organisations can emphasise these in job advertisements and on their websites (Gomes & Neves, 2011). However, as already noted, it is wise for candidates to do their own research on organisations they wish to join. Second, having identified opportunities candidates need to evaluate the person/job fit and the person/organisation fit from their perspective. Applicants mostly want to join organisations that provide them with future careers. They seek out organisations that are looking forward and if an organisation is viewed as just wanting to fill vacancies then applicants may react negatively.

Applicants and Re´sume´s

195

Organisations create websites to market themselves, but also with an expectation that candidates will visit their sites in order to determine if job vacancies exist, and to allow applicants to see if they believe the jobs on offer and the organisational antecedents match their needs. Thus, the websites act as a two-way system, allow information to be accessed by candidates and evaluated by them. They expect candidates to research their websites. The design of the website becomes important in attracting a pool of candidates and reinforces the organisation’s image. The evaluation of fit is also a two-way process. Talent acquisition or knowledge/asset acquisition managers need to consider this two-way process when placing material on their websites or through the use of social media. People will go to the websites of organisations they prefer or know before checking the websites of organisations they do not know. Strategic organisations will recognise this and allow for it as a mechanism to reinforce their social reputations. As organisations create websites with this in mind, they expect that candidates who are serious about their careers will access and use the information on such websites. Candidates can better evaluate their fit with the job and the organisation and can determine if they want to pursue this further. This provides a filtering mechanism whereby candidates who do not perceive the possibility of fit will not engage with the recruitment process any further. Research by von Walter, Wentzel, and Tomczak (2012) also suggests that timelines play an important role in determining applicant’s interest in applying for a job. An example of this is where a young graduate goes to the website of two equally desirable websites in March. On one website the person sees that the first organisation will start recruiting graduates in November of that year. The second website states that they have a mid-year intake of graduates and states it will review applications by current undergraduate students and make them a job offer while they are still studying. Their research suggests that candidates would prefer to contact the second organisation as it better meets their temporal needs. The research by von Walter et al. (2012) also suggests that an applicant’s weighting of fit with the organisation and more concrete matters such as wages and salaries will increase as the possibility of employment approaches. Candidates not only research on organisations they would prefer to work in, but similarly to selectors, they weight various components of the recruitment and selection process. A candidate may visit the website of a preferred employer and participate in the recruitment and selection processes. However, similarly to the selectors, the candidates will reassess their interest based on the professionalism of the processes and the more they learn about the organisation and the job. Candidates should continually reassess their perception of the short-, medium- and long-term benefits of joining the organisation. With both selectors and applicants continually re-evaluating fit from each others’ perspective, a closer psychological contract should emerge where possible. Both parties need to gather as much knowledge about each other as possible in order to make an informed decision.

196

Bernard O’Meara

The candidate’s journey starts by determining what type of job they want and what characteristics of organisations appeal to them. An objective self-evaluation of strengths and weaknesses should be undertaken and then a review of websites or the use of social media and discussion with friends and family can help determine likely employers. For each step undertaken by an organisation, there is a similar step for candidates to undertake in preparation for enhancing job prospects. Research by Jiang and IIes (2011) in China linked organisational attractiveness and employee brand equity, not just with making an organisation an employer of choice but also by impacting upon the successful applicants’ intentions to stay with the organisation. Candidates can discern consistency in strategic people-based organisations and make decisions accordingly.

6.7.

Cultural Differences

The culture of an organisation can influence the decision making of candidates. Organisations such as Google, Microsoft, Mars and 3M publicly and positively exploit their cultures, and this is reflected in how they value their staff. Organisations that value staff as assets embed this philosophy throughout their organisations so that a consistent culture is achieved. Evidence of this can usually be found in their flexibility, talent investment and benefits provided to their staff and family members. This can also be reflected in an organisation’s intent to create a work/life balance for all staff. Such organisation are usually strategic in nature and through sound investment and financial strategies can also ensure relative stability and job security for staff, despite external pressures such as the Global Financial Crisis and decline in local economies. These organisations treat staff as they do their clients as valued ‘family’ members. These organisations are known for employee engagement and inclusivity which also are generally embedded in organisational culture and leadership philosophy. The work/life balance refers to an organisation’s policies and support mechanisms which are designed to help staff deal with increasing demands of work, personal life circumstances and both. If this balance cannot be achieved then often staff will leave and find an organisation that does understand the need to achieve this balance. Thompson and Aspinwall (2009) suggest that most organisations undertake a cost/benefit analysis to determine if they can afford to provide such benefits. However, their research confirms that organisations providing such benefits help an organisation to be more effective in recruiting, motivating and retaining staff in a competitive environment. Their research showed that for women in particular the provision of childcare benefits influenced their decision to join an organisation. Other benefits such as flexitime, telecommuting and eldercare benefits also influenced their decision to join an organisation.

Applicants and Re´sume´s

197

This suggests that organisations understand the pressures of achieving a work/ life balance and are upfront in outlining to candidates how the organisations help staff deal with such issues. This reduces stress in interviews as there is no negotiation regarding such benefits. Applicants can be upfront about their needs and organisations understand these needs when they employ staff. This reinforces an engaging and inclusive culture. As organisations create a culture within, they display characteristics of the type of culture through the benefits and support given to staff. This in turn is reflected through their websites and material given to candidates at careers fairs or distributed through schools, colleges and universities. Catanzaro, Moore, and Marshall (2010, p. 650) contrasted two types of organisational culture in the United States. The first was the competitive (masculine) culture where respect for authority, competition, individualism, independence and taskorientation is valued. Other valued aspects include assertive and aggressive behaviour to external and internal competitors, respect for hierarchy and authoritarian management practices. The second culture was the supportive (feminine) culture that valued participation, collaboration, egalitarianism and interpersonal relationship. In this culture there is less emphasis on hierarchy, and the focus is on groups and providing more intrinsic rewards. These two cultures were perceived cultures and influenced the decision by candidates to apply to organisations espousing other cultures. Both male and female participants in the study reported a stronger intention to pursue a job in the supportive culture. While more men than women preferred the competitive culture, overall both males and females preferred the supportive culture. Men and women choose the culture of an organisation that values what are most important to them. The explanations for preferring the supportive culture included the allowance for achieving a work/life balance, no sacrifice of one’s personal life was required and organisations with this culture were perceived to be more friendly and supportive of their employees. The perceived internal culture of an organisation can influence the decision to pursue a career with an organisation. There are, of course, a range of reasons why one organisational culture is preferred to another and can include geographic location; however, how an organisation is perceived to treat its staff through its culture is extremely important to candidates. Another issue is where a person familiar with one national and employment culture is introduced to another. This can occur of course when expatriate staff are relocated to a part of an organisation operating in another country. Chandrakumara and Sparrow (2004) argued that a national culture needs to be considered when organisations commence operations in other countries. They argue that meaning and values of work orientation is an element of a national culture and that people with certain orientations may prefer their employer organisation to adopt corresponding HRM practices.

198

Bernard O’Meara

However, there is a more common and fundamental clash of cultures when a person moves to another country and seeks employment or where a person joins a foreign organisation in his or her own country. Feichtinger and Fink (1998) suggested that the transfer of western management practices is not always successful because of cultural clashes. The clash of cultures is highlighted by an example they cite from Hungary. They cite a Hungarian tool manufacturing company where it is daily practice for staff to meet and discuss issues and possible solutions with their supervisors. The meetings can last up to two hours. A frustrated German production engineer is consulted, who cannot understand how people can spend so much time discussing minor issues and not making any decisions. The example highlights different approaches embedded in corporate cultures. Jaw, Ling, Wang, and Chang (2007) found that Chinese who had worked or studied in western cultures found it easier to adapt to western-styled cultures and especially individualism in foreign-owned enterprises now operating in China. There is no doubt that cultures clash; however, the clash is most evident when people travel across different countries, relocate to where their expertise can be better utilised or where students travel to other countries to gain higher education qualifications. In the situation where a person relocates to another country to seek employment, where they can utilise their talent, the focus tends to be on the competence or skill, and communication and cultural issues can be resolved over time. However, in the case of young travellers and those engaging in higher education in other countries, the issues may be complicated by a lack of significant work history. These people may find themselves in countries where their language skills are insufficient and may only have a vague reference point as to different work cultures. In research on Latin American immigrant professionals possessing an MBA, Hakak, Holzinger, and Zikic (2010) found that despite holding Canadian Qualifications candidates still found challenges including: • • • •

Language barriers Lack of networks Cultural differences Discrimination

This is also the case where people travel and work internationally or where they study and attempt to work in another country. In either case, research should be undertaken in order to better understand the culture and practices of the different country prior to departure. If a person wished to study and/or work in Australia and was from China, India, Malaysia or Europe, then an Internet search would be recommended. It would also be useful to identify organisations that operated in both countries so that the person could ask about the organisation’s culture, practices and overseas operations. This could lead to a meeting being arranged between a representative of the organisation and the person once they arrive in Australia.

Applicants and Re´sume´s

199

If the person has limited work history or demonstrated human capital, the situation can be worsened if their English language proficiency is low. While different countries have different language requirements, the person needs to have a sufficient command of the local language so that they are not dependent upon interpreters. Another issue facing those going to another country for a limited time such as three years to complete a degree program is that employers may view such candidates as only being able to stay with the organisation for so long unless they are seeking residency status. The more strategic organisations will see cultural diversity opportunities where other organisations may not believe that they will gain a return on their investment in short stay staff. For those people studying for a qualification in another country may organise for a student placement or internship through the university or college they attend, prior to accepting an offer to attend the institution. Any form of discrimination is illegal and impacts negatively on the organisation’s reputation. It also causes mistrust amongst candidates and the ability to create a pool of candidates from which to draw applicants. Discrimination can be subtle and difficult to prove at times. Any person traveling from one country to another for a working holiday or to study and work may experience the issues outlined by Hakak et al. (2010). However, candidates can still highlight their human capital or potential as well as any work experience or traits that have made the person successful in other aspects of life. A good candidate is a good candidate in any country.

6.8.

Summary

This chapter commenced by looking at the differences between applicants and candidates and how people move from one to the other. The differentiation between the two is important as people can, at times, use the terms interchangeably and this is not the case. Applicants are those people who formally submit a re´sume´ and fulfil any other application requirements such as providing references and completing application forms. An overview of life-span learning was given as a means of highlighting how people develop and grow personally and professionally from programmed learning or situations as they arise. Life experiences have a significant impact on our lives and help shape the people we become. We learn and grow in different environments but the learning experiences we encounter are also useful in our working lives as they help us do things such as work happily in teams, accept responsibility and authority, and determine our levels of commitment. These shaping experiences continue across our private and work lives, and as such at times we need to explain that a number of experiences lead to people acquiring competencies and traits. We then discussed about activities that people can engage in to enhance their work history where this is limited. These include students undertaking placements

200

Bernard O’Meara

that allow them to work in an organisation in their chosen career for a predetermined amount of time. An internship or cooperative education approach allows a student to work with an organisation in his or her chosen career for up to a year. In an internship, the person must achieve a professional standard of quality, and their work is assessed by senior staff within the organisation while the academic component is assessed by one or more academics. Constructive feedback is given to the student by the management of the organisation and the academics. In many instances those undertaking a placement or internship are employed full time by the host organisation prior to the student’s graduation. Another avenue discussed was the benefit of volunteering where legal and insurance issues can be overcome. Many universities and colleges have incorporated computer simulations and games in courses to help students develop necessary requisite competence and experience albeit in a controlled environment. Other learning tools such as WBL and PBL are used to give students the opportunity to analyse real organisation issues, and students can prepare recommendations and present these to the employer for feedback. The role and purpose of the re´sume´ was then outlined. The traditional or formal re´sume´ was discussed which has a focus on what the applicant had done in terms of jobs and when. This was contrasted with a targeted re´sume´ which matches the applicant’s functional aspects with the requirements of the job and organisation. It targets the applicant’s strengths and the core selection criteria for the position. Two hybrid types of targeted re´sume´s were discussed where work history is combined with human capital. This can be achieved by having a central section on competencies and traits or the latter can be incorporated into the work history section. Specific reference was made to those with limited work history and how this can be overcome through the focus on human capital. A device called a re´sume´ hook was discussed and how this can be used to increase the probability that a specific question will be asked during an interview. The chapter concluded with the recommendation that candidates do as much research as possible before applying for any position. Cultural differences were discussed and showed how these can act as a barrier or an opportunity for applicants.

6.9. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Review Questions What is the difference between applicants and candidates? Why is it important to selectors to know how we learn? What are the benefits of student placements and internships? What is the difference between a re´sume´ and a Curriculum Vitae? What is human capital? Can re´sume´s adequately reflect a person’s human capital? What is a traditional re´sume´? How is it constructed? What is a targeted re´sume´? What is a hybrid re´sume´?

Applicants and Re´sume´s

201

10. 11. 12. 13. 14.

Should candidates research organisations they want to work for? Why? What is a re´sume´ hook? How is a re´sume´ hook used by applicants? What organisation cultures are desirable to candidates? How can an applicant’s own culture and language negatively impact upon them? 15. How can an applicant undertake a self-assessment in preparation for creating a re´sume´?

6.10.

Learning Activities

1. Create your own re´sume´ and have it assessed by your peers. 2. Design a re´sume´ hook for inclusion in a re´sume´. 3. Survey organisations to determine if they take student placements or internships? What are the benefits according to organisation staff? 4. What do local organisations seek in a re´sume´? Are these computer screened initially? 5. Do local organisations consider internal culture as well as applicant culture in selection?

Chapter 7

Interview Preparation Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Appreciate the preparation applicants need to undertake prior to an interview • Understand the research that needs to be undertaken on specific organisations • Value the distinction of preferred employers to other employers • Appreciate the fit an applicant seeks in a job or with an organisation • Understand the impact of self-evaluation • Understand the benefit of peer and video assessment

7.1.

Introduction

Preparing for an interview is similar to preparing for any important activity in life. An interview is important because it can start a career, lead to financial independence and fulfil personal aspirations. As such, some interviews are more important than others depending on how much the applicant wants to succeed in the interview and beyond. The interview needs to be treated like an exam where you need to do the very best you can. In education, the outcome of an exam stays on your institution’s record of your results. The outcome of an interview is just as permanent, especially if an applicant seeks to be interviewed for the same position in the future or is interviewed for another position in the same organisation. The result of the interview is recorded, as is the reason why the person did or did not get the job. Sophisticated ATS, discussed in the previous chapter, allow organisations to track current and previous applicants.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

204

Bernard O’Meara

If a person does not succeed because of the interview, the applicant details remain in the system. Also if a person is not successful because of testing, participation in assessment centres or reference checks, the details are retained. Hence, in a highly competitive environment, where talent is valued, candidates are recommended to do their best in preparing for the interview. The interview establishes the applicant’s credibility and reputation as well as job readiness. It is a test of the applicant’s bona fides for this and other positions within an organisation. Because interviews vary, depending on the job and organisation needs, the interview type and questions may be different in each interview. Therefore, the nature of the preparation may also vary, but inevitably success is determined by preparation as well as fit. Both organisations and applicants need to determine the degree of fit that exists or does not exist. The organisation’s interviewers will prepare for the interview and the applicant is advised to do so as well. The creation of a psychological contract commences during contact between selectors and applicants, and applicant’s expectations are also shaped at this time.

7.2.

Preparing for the Interview

Once the re´sume´ has given the applicant the opportunity to progress further into the appointment processes, including interviews, testing and/or participation in assessment centres, applicants should be preparing for each step of the process. These processes include: • • • • • • •

Interviews Completing application forms (where they are required) Testing Assessment centre participation Medical or other insurance requirements Reference checks Trial periods

While each step is important, the more subjective forms of assessment such as interviews are arguably the most important because they allow for subjective evaluation and interpretation of an applicant’s responses to questions or undertaking assessment centre activities. As mentioned previously, each aspect of the selection processes need to be job related, reliable and a valid means of predicting the applicant’s job performance and fit between the applicant and both the job and the organisation. The selectors will be preparing for each of the steps given above, depending on which are used, because they are making a long-term commitment of organisational resources and investment in staff development.

Interview Preparation

205

The applicant is also committing to a longer-term relationship, to developing human capital for the organisation and deriving income and social status from the relationship. It is worthwhile for the applicant to take the time to make the right decision. The interview is a two-way exchange of relevant information that allows both parties to make an informed decision regarding the applicant-job fit and the applicant-organisation fit. They will both be reviewing any deficiencies in talent, as well as the match with the short-, medium- and long-term needs of the organisation. The process allows the interviewers to better understand the learning experiences that have shaped the applicant’s human capital, and often it is the first time the applicant and the interviewers have met. The process is subjective and the applicant relies on the interviewers’ communication and judgment skills to comprehend what they are saying and why. However, it is ultimately the applicants who know their own potential and level of talent and how this needs to be expressed. The interviewer can help draw out important issues but it is too late after the interview when an applicant thinks I should have told them about…. Both parties are there for a reason and both need to effectively contribute to the interview process. The systems approach is useful as interviewers can determine what community and work-related systems and subsystems the applicant has been exposed to. This aids in talent development and career mapping. The applicants know the systems and subsystems to which they have been exposed and to which they want to be exposed. For example, they know about their education in the community system, they know about the social system they are part of, they know what human capital they have developed, where and why. Some research will aid the applicant in determining to which system or subsystem he or she needs to be exposed, such as professional bodies in the person’s chosen career path or seeking a mentor and increasing the level of education. The applicant can prepare by knowing the purpose of the interview from the organisation’s perspective. There are only a few areas that the interviewers can use to generate questions while the length of the interview will be determined by the nature of the job. A graduate interview can last two hours or more while an interview for a casual or part-time position can take between 20 and 45 minutes. The areas that an interviewer can draw upon to generate questions include the following: • • • • • • •

Job requirements Organisation requirements Selection criteria or KSAs Information from re´sume´s Information from application forms Information gained or clarified during the interview Results of pre-interview testing or assessment centre material

206

Bernard O’Meara

If the applicants look at the interview from the organisation’s perspective then they can anticipate questions that may arise and prepare accordingly. The applicant can draw upon the following to anticipate questions that will be asked by the interviewer or questions the applicant can ask: • • • • • • •

Material contained in job advertisements Position descriptions, where they are given to applicants Research on the organisation and job Selection criteria or KSAs Information provided in the re´sume´ Any analysis of competitors or industry employment standards Information gained or clarified during the interview

In terms of very subjective evaluation that might occur, the applicant needs to consider • • • • •

Dress standard expected Language literacy, avoiding ‘ums’, ‘yeahs’ or ‘arrs’ Interpretation of body language Perceived level of interest Perceived level of self-confidence

Where an applicant has substantial work history, she or he can expect behavioural-based questions such as Tell me how you dealt with a difficult customer. This is appropriate as it draws on the applicant’s experience, and other likely question would be: Were you successful in the way you handled it? Why did you do it that way? Would you do it that way again? If the applicant has limited work history, then situational (hypothetical) questions may be used such as: How would you deal with a difficult customer? The response may allow the interviewer to ask more probing-type questions such as what would you do if that approach did not work? Why would you do it that way? The degree of experience possessed by the applicant can, in some ways, affect the structure of the interview and the questions asked. In this case the applicant can reflect on his or her experience and how she or he would respond to behavioural or situational questions or a combination of both types.

7.3.

General Interview Preparation

Because a job interview can change an applicant’s life, it is worth preparing for. Some general advice is to: • Know where the interview will be held. It is useful to know where the interview will be held and where car parking or public transportation is available. Applicants will not get lost if they know where they are going.

Interview Preparation

207

• Arrive early. Applicants can be early or on time but never late. Arriving early gives you time to compose yourself and reflect on how to best present yourself or to review your re´sume´. • Observe the dress code used by the organisation and dress appropriately. As part of the applicant’s research it may pay to notice the degree of formality or informality in the organisation’s dress code. If unsure, be conservative but comfortable. • Ensure personal grooming is appropriate. Small things such as unkempt hair, bad breath or body odour may not be considered appropriate by the interviewer. • Have a copy of your re´sume´ with you for reference. If you are nervous you can refer to notes or to a copy of your re´sume´ should the need arise. Applicants should not be too creative if they are unsure as to the part of the re´sume´ the interviewer is referring to. Reading from the same document can help avoid any misunderstanding or misinterpretation by either party. • Have a pen and pad with you to jot down important items. The interviewer may ask you to come back for another interview or ask that you attend a testing centre or assessment centre. Interviewers may also ask that you provide additional information and it is far easier to write these items down than forget them later. • Have written references with you in case they are required. In most instances interviewers will advise in the job advertisement if applicants are required to bring written references or the names of referees to the interview. In most cases these are required later in the process, but at times interviewers may ask for these if they are keen to follow up such items. The contact details of referees should only be provided with the permission of the applicant. Applicants should not list referees unless the referees give them permission to do so. • Use positive and constructive mental imagery prior to the interview. As discussed later in this chapter, research has shown that applicants who create a positive mental image of the interviewer asking questions and being satisfied with the responses, tend to perform better. Those who imagine the interview ending with a job offer also do well in real interview situations. • Read your re´sume´ thoroughly and be prepared to explain any inconsistencies. Applicants should know themselves and should not be surprised by any questions raised because of the re´sume´. Looking at the document from the interviewer’s perspective can highlight any oversights or unintentional errors that may be queried during the interview. • Relax and have confidence in yourself. It is common for applicants to be nervous when participating in an interview. The more the applicant relaxes prior to the interview the better. Applicants should be viewed as confident in themselves and their achievements, talent and potential — but definitely not overconfident. A relaxed environment can help stimulate far deeper discussion and engagement. • Consider videoing yourself in a mock interview where family or friends ask pertinent questions. At times it is useful to listen to yourself and to watch yourself on video so you see and hear what the interviewer sees and hears. Look for any distracting body language, mannerisms or verbal expressions from a very objective perspective to see if these detract from what you are saying. If others are helping in providing mock interviews they can give you constructive feedback. If you want the job, it is worth the effort.

208

Bernard O’Meara

Applicants should consider each of the above aspects from the interviewer’s perspective, not just from their own perspective. While these suggestions are general, they are recommended by a number of researchers and practitioners to help the applicants present themselves in the interview as positively as possible (Akhtar, 2012; Crumpley, 2002; Walker, 2011). While the interviewer(s) are preparing for the interview, the applicants need to do the same.

7.4.

The Impact of Pre-Employment Perceptions

The submission of the re´sume´ or completed application forms have been shown to impact on the interviewers’ perceptions of the applicants and can form unintended bias. Dipboye (1982) referred to the relationship between an interviewer’s pre-interview evaluations of an applicant to post-interview evaluation and decision making as self-fulfilling prophecies. (See also Chapter 3 above.) Once a re´sume´ or completed application form is received by an organisation, interviewers analyse these and create a mental image of the applicant based on the applicant’s qualifications, expression, work history and referees as they review the material. This supports Dipboye’s other research, suggesting that interviewers make up their minds about applicants in the first few minutes of the interview. The research by Dipboye (1982) suggests that if a selector favourably evaluates an applicant’s qualifications before an interview, the interviewer will more favourably evaluate the applicant’s qualifications after the interview. The reverse is also true. This applies to the decision to appoint an applicant as well. Dipboye’s (1982) research also suggested that the interviewer will signal, perhaps unintentionally, to the applicant during the interview indicating the favourable or unfavourable pre-interview evaluation. If the interviewer gives positive signals, the applicant will pick up on these and act with more confidence as the interviewer confirms their own pre-interview evaluation. The reverse is also true. In terms of cognitive mediators, the interviewer is likely to notice, recall and interpret applicant’s behaviour in an interview that is consistent with their pre-interview evaluation. The interviewer then comes to believe that his or her pre-interview evaluation of applicants is correct and may seek less information about applicants, but decide on selection appointments based more on their pre-interview evaluation of applicants. Unskilled interviewers may well create mental images of applicants before meeting them and seek confirmation throughout the interview of the correctness of this evaluation. In this case it literally takes interviewers only a few minutes to subjectively evaluate applicants in the interview. By the time interviewers introduce themselves and settle the applicant’s nerves by making general conversation before commencing the substantive part of the interview, the decision to appoint or reject may already be made. There needs to be consistency between the re´sume´ and performance in an interview.

Interview Preparation

209

However, mental imagery can also benefit the applicant. Research conducted by Knudstrup, Segrest, and Hurley (2003) contrasted a control group of university undergraduates with another group using mental imagery prior to the simulated job interviews. There were 4 interviewers and 99 students in the research project. Each group was given a copy of 10 questions to be used in the interview by the interviewer. The second group was then told to relax, take a few breaths and to visualise the interviewer asking the 10 questions. As part of the research the group was also asked to imagine the interview proceeding successfully and culminating with a job offer. The group using mental imagery was more successful than the control group. The more conscientious students in this group performed the best as they appeared to be better able to successfully utilise mental imagery. It was also found that those with higher levels of self-esteem also outperformed the control group. Both the interviewer and interviewee can use mental imagery if it is used constructively and objectively. At the end of an interview, both parties need to be able to make informed decisions to continue with the appointment process or to cease further involvement.

7.5.

Change of System Status

When entering a country for the first time, travellers must provide their passport and/or visa to Customs and Immigration staff. This is a standard practice. However, in terms of strategic recruitment and selection, the re´sume´ is the equivalent of the passport from one employer to another or from the broader community into an organisation. The re´sume´ contains the relevant facts about a candidate as does a passport. However, when moving to a country permanently or for several years, Immigration departments will interview applicants about their intentions, gap-filling talent and job potential or sponsorship arrangements. This is a process of transferring from one country or system to that of another country or system. For those with limited work history, they must prove that entering a new organisation or system is mutually beneficial to both parties. The re´sume´ tells a potential employer of your relevant experiences in other systems or subsystems, such as your role in the community, your level of education, your talent or potential and your work history and ambitions. Like a passport, the re´sume´ gets an applicant an interview and the opportunity to articulate why she or he should be considered for appointment to the vacant position. The interview builds on the re´sume´ and the applicant’s learning experiences which form part of the discussion in an interview. But applicants should remember that they have been a part of multiple systems, each with their own learning experiences, and these may be used in the interview to support their application for the position. Applicants and candidates are still part of other systems even if they are unsuccessful for a job.

210

7.6.

Bernard O’Meara

Recruitment Interviews

Organisations may conduct one or more interviews at different times in the process but generally after electronic scanning via an ATS. Applicants may be tested before or after tests and/or reference checks. However, where two or more interviews are used then each has a different purpose. The recruitment interview acts as a second level filter by identifying suitable applicants for serious consideration for the job, following re´sume´ scrutiny. At this stage, applicant suitability is determined by comparing the applicant’s knowledge, experience and work history with the job requirements. Talent and potential are also explored. The recruitment interview is used to identify the best applicants and these form a short-list of suitable applicants. The short-list can consist of three or more applicants. After the recruitment interview the selectors meet to decide the best applicants and which of these should proceed to the selection interview. Salaries and benefits are rarely discussed at the recruitment interview, as this is simply a hurdle process — does the applicant meet the minimum job requirements? Where an organisation has a talent gap, both potential and talent may be explored and some applicants may proceed to the selection interview based on this talent and potential alone. This is also the stage where employability is determined. In a study by Nilsson (2010, p. 548) on the employability of engineering graduates, it was found that employability refers to both hard and soft skills. The study of 20 recent graduates found that the key initial employability criteria included: • • • •

Formal competence Social contacts and networks Literacy Oral and written communication skills

However, the graduates stated that it was also necessary to target and market appropriate competencies and other aspects of employability to specific employers. Interestingly, formal qualifications were viewed as a proxy that is indicative of an individual’s productive capacity. The mix of hard and soft skills is viewed as essential, as is knowing what the employer is seeking in applicants. Internships provide applicants with a degree of employability (Chi & Gursoy, 2009). Domeyer (2007, p. 5) suggests that interviewers have central themes on which their questions are based. These include: • • • • •

Is the applicant qualified for the job? Will the applicant work well with the current team? Does the applicant want the job? What human capital and potential does the applicant have? Will the applicant add value to the organisation’s talent bank?

Interview Preparation

211

Interviewers will seek to answer these questions throughout the interview by using a variety of questions types. Hard skills include those required on the job. An accountant may need to understand micro- and macro-economics, business law and tax law in addition to their accounting skills. But they might also require soft skills such as interpersonal and communication skills, leadership ability and a knowledge of management principles.

7.7.

Selection Interviews

Selection interviews are designed to differentiate between similar suitable applicants and their fit with the organisation. This is the time for discussion about career opportunities, personal and professional growth, the mutual listing of expectations and conditions and salaries. This interview, especially for graduates, is more about the fit of the applicant with the organisation and the role the person is expected to play in it. This finetunes the relationship between the organisation and short-listed applicants, which will culminate in an offer of employment or otherwise. While this type of interview is still a hurdle, only applicants considered suitable for the job get to the selection interview, and this is where the display of both hard and soft skills is appropriate. The duality of the selection interview is highlighted as both the applicant and the organisation must decide if they want to create a contractual employment relationship. Thus, applicants should be prepared to ask the right questions to help them make their decision. Johnson et al. (2008) point out that, if handled poorly, management recruitment and selection can lead to law suits, poor public image and an inability to fill job vacancies. Thus, applicant’s perceptions about recruitment and selection interviews and other personal interactions can negatively impact upon an organisation. Roebken (2010) found that similarity-attraction theory occurs in many industries and academic sectors. In this case universities (organisations) provided student exchange experiences between universities that have a similar status, had relational similarity and similarity in their respective research cultures. Thus, while similarity-attraction theory has been explored in terms of interviews in previous chapters, it can also happen at an organisational level. Work history with a respected competitor may work in favour of the applicant. From the applicant’s perspective, Papadopoulou, Ineson, and Williams (1996) found that the interviewer’s conduct of the interview greatly contributed to the applicant’s decision to continue with the appointment process. While the study included 87 undergraduate and graduate students, the research was limited to estimating outcomes on students’ decision making. However, the researchers noted: The interviewer’s competence in supplying the candidates with information concerning the job, the company and the training scheme

212

Bernard O’Meara available, and, to a lesser extent, his/her openness to information coming from the candidate accounted for most of the variance in this study. (p. 33)

This again highlights the duality of the interview process and the applicant’s ability to observe and interpret the interviewer’s approach and to decide if this is indicative of the organisation’s culture and how it views its staff.

7.8.

Commonly Asked Interview Questions

Depending on the nature of the interview and its length, there are questions that most interviewees will be asked. Graduates are sometimes perplexed that the interviewer spends less time asking about the applicant’s formal qualifications than they expected. As discussed earlier, formal qualifications may be taken at face value when they are from reputable institutions and may be viewed as a proxy for productive output, commitment and achievement. Many graduate interviews include discussion of both hard and soft skills. Higher education and vocational education students or those travelling on work permits in other countries can expect questions to tease out the reasons for seeking employment. The India Career Guide (2009, pp. 77 78) suggests that applicants be sensitive to cultural traditions such as ‘accepting the offered water, tea or coffee at the start of the interview’. Questions asked during interviews can include: • • • • •

Tell me about yourself. Why did you come to India? How do you like it in India? What type of position do you expect to find in India? How do you think your work experience translates into the Indian market?

These are all relevant questions, and similar questions would be asked to visitors or migrants seeking employment in any other country. These are also predictable to the point where they are embedded in national documents. Organisations such as IBM and Google have used questions designed to stretch the applicant’s ability to think quickly and correctly while taking them out of their comfort zone. Examples of such questions have included: • How would you weigh your head? • How many pizzas are delivered each year in Manhattan? • If you were given a million dollars to redesign Bill Gates’s bathroom, what would you do? The questions are designed to see how applicants can devise a logical method for estimating an unknown quantity. They are also about product design. While McClearn (2012) reports that such questions are being asked less frequently, he

Interview Preparation

213

suggests that websites such as Glassdoor.com and Careercup.com are worth visiting as these outline the types of questions that interviewers ask. If an applicant is asked such questions, it is common for the interviewer to withhold some information till the applicant asked for it to be clarified. More information may be required. McClearn (2012) suggests that applicants restate the questions in their own words, think out loud, to discount the easiest answer and to summarise the answers. Research can help identify the most common questions that interviewers ask. Some of the commonly asked questions are listed below and these are not in order: • Tell me about yourself? This question is asked once the applicant has settled and any nervousness has been reduced. It is generally recommended that applicants have a brief response to such open-ended questions. A response can include references to educational qualification, work history, achievements and present employment, levels of authority and/or responsibility and reporting relationships. This is a short, targeted response of a few minutes. It outlines the very broad aspects of the applicant’s background and human capital and the interviewer poses the question to start a more detailed line of questioning. However, the interviewer has a copy of the applicant’s re´sume´ and may use the information in this to start the discussion as well. The interviewer is determining the applicant’s priorities by what the applicant includes in their response. This indicates what you are proud of and what you consider exemplifies your experience, achievements and human capital. This is the first insight of the applicant the interviewer gets and it allows the latter to establish rapport and an understanding of how the applicant thinks. • What are your strengths? The question builds on the previous question and requires the applicants to selfevaluate themselves. Applicant’s strengths can be demonstrated in line with the job requirements but can be reinforced by a range of other areas such as sport and education. Multiple references across a person’s life can indicate consistency as previously discussed. The strengths need to be in-line with the job/organisation requirements but should not be couched in absolute terms, otherwise an applicant may be perceived as overly confident. At any time throughout the interview, the interviewer may refer to a re´sume´ hook and this will allow the applicant to talk about areas that are supportive of his or her suitability for the job. Applicants need to be able to support their claims about strengths by example, but this should be done diplomatically. Applicants may be able to judge by the interviewer’s body language if they are presenting themselves as overly confident. If this should occur, the applicants can retrieve the situation by clarifying and playing down what they have just said. • What are your weaknesses? While most people are comfortable in describing their strengths, many are unsure how to present their ‘weaknesses’. Applicants may believe that by admitting weaknesses they are talking themselves out of the job.

214

Bernard O’Meara

However, as Akhtar (2012) suggests, this can be overcome by positively portraying a weakness as a personal or professional development opportunity. Consider a person who lists their strengths as including a focus on accuracy and detail. They then list their weaknesses as including spending too much time on the detail to ensure the success of broader strategic outcomes. The applicant then outlines what he or she is doing to cope with this apparent weakness. Depending on the job and the organisation, an inexperienced interviewer may suggest that the weakness may, in fact , be a strength. An applicant for an engineering role or an economics role would need to pay attention to detail and accuracy and the weakness can be re-presented as developing it into a strength. The interviewer may well be asking if the applicant learns from his or her experiences and how he or she rectifies any potential deficiencies. Taking the question on face value an applicant may respond openly and honestly but not give the interviewer an insight into his or her ability to identify and rectify such issues. • What are your major accomplishments? This is an opportunity for the applicants to state their job/organisation-related achievements as well as how they achieved these. An applicant might state that she or he increased sales revenue but the strategic selector wants to know what the applicant did to achieve this outcome. The applicant may say that she or he engaged the relevant consumer group, determined their needs and through hard work and commitment achieved the increased sales performance. In this instance the applicant is relating human capital and potential in quantifiable terms to successful outcomes. While each response needs to be relatively brief, it will become evident to the applicant what aspects the interviewer wishes to investigate more thoroughly through probing-type questions. Akhtar (2012) also suggests that applicants can provide the interviewer with extracurricular achievements which demonstrate a consistent pattern across the applicant’s life. • What interests you in our organisation? Domeyer (2007) suggests that this question allows applicants the opportunity to outline their research on the organisation, its products or services, its industry sector and why they want to work there. Selectors will be looking for applicants who show serious commitment to establishing their careers and have done their research. This also allows applicants to illustrate how their competencies and human capital fit with the needs of the job and the organisation. Research may reveal that the organisation is expanding into new markets or growing new products and services that match the career aspirations of the applicant. The applicant can not only demonstrate knowledge and research about the organisation, but she or he can illustrate the match between the short-, mediumand long-term goals of the organisation and themselves. This may be an opportunity for the applicant to suggest he or she is interested in a long-term career relationship. Again this may reinforce the interviewer’s belief

Interview Preparation

215

that investment in the person’s human capital is worthwhile, which then leads to the acquisition of talent and meeting the strategic needs of the organisation. • What do you know about our organisation? This question is quite direct and requires applicants to demonstrate that they have done their homework. Certainly there are a variety of sources of information including the Internet, the organisation’s home webpage, news media, annual reports and press releases. Speaking to people familiar with the organisation may also be helpful. The use of social media sources can be a rich source of information, but needs to be carefully considered as these may reflect the bias of other users. The fact that this is a common question suggests that the contemporary organisation expects applicants to undertake research on the organisation as the selectors research the applicant. The more research an applicant does, the more he or she will be better informed about choosing to work for an organisation. In this sense the applicant becomes a filtering mechanism by using research to decide which jobs to apply for at specific organisations. The research gives confidence to the applicants that they have made the right decision to apply for some jobs and not others. This reduces the stress on the applicant by identifying specific organisations in which to seek employment. The applicant need not sit through interviews where he or she has no real interest. Hence the suggestion that applicants do not send out massive numbers of standard uniform re´sume´s but should instead target specific organisations and specific jobs. While selectors are using hurdles to filter out unsuitable applicants, the applicant can also filter out unsuitable jobs and organisations. One approach to this issue is for applicants to make a list of their ideal job and its characteristics along with ideal organisations they would like to work for and even the type of industry they would prefer to work in. The applicants can then work back from the ideal job and organisation to a more realistic expectation. Along the way, the applicants can work out the essential elements of their preferred job and organisation compared to their ideal characteristics. Applicants can separate the essential and ideal characteristics on aspects such as salary, career advancement, job security, personal and professional development, talent investment and recognition. Thus, an applicant might want an ideal salary of $100,000 per annum but would accept a salary of $45,000 as a trade-off for job security and career development. • What are your skills and experiences? The response to this can be job specific. This is a hurdle question, in that the applicants either have the competencies or potential, or they do not. At this point the applicant needs to convince the interviewer that she or he has the requisite human capital. The applicant can link work history and achievements, specific training and job responsibilities with the job requirements to develop an argument to convince the interviewer that he or she has, at least, the minimum requirements to undertake the job.

216

Bernard O’Meara

It is not sufficient to state that you have the requisite skills and experience as each applicant will be making the same claim. Applicants who attempt to prove these claims to interviewers by using quantifiable data tend to be evaluated more highly. An argument will generally outweigh an unsupported statement. Once the applicant successfully establishes that he or she has the minimum requirements, then the person can use informed judgment to decide if it is necessary to outline how high their skills and experiences are above the minimum. Informed judgment is required to decide if the interviewer is satisfied with having established the applicant has the minimum requirements and if pushing above this may give the interviewer a negative impression — overconfidence. Each question is asked for a reason and applicants need to decode the signals from the interviewer as to going further than necessary. If the interviewer wishes to pursue an aspect then she or he will if it is believed further investigation will add value to the applicant’s suitability. • How did you come to apply for this job? This question is simply to identify the form of communication (Internet, newspaper, family, friends) that informed you of the vacancy. This question will generally be asked of all applicants to identify the key course of attracting an applicant pool. From a systems perspective, systems interact with one another. It is important for organisations to understand the interaction of these systems and those which provide avenues for people to be informed of vacancies in the organisation’s system. The organisation may generate candidates by using its own system, such as employee referrals. Where the organisation spans different systems, such as corporate engagement of the community, this may also lead to developing a pool of applicants. If the organisation is successfully engaging other systems (community, other employers, migrants and so on) it needs to know which interactions are effective and which are not. Are its networks effective? • Why have you applied for this job? This question builds on the previous question. The interviewer is trying to discover what motivated the applicants to apply for the position once the vacancy was made known to them. The interviewer wants to know if the job or the organisational antecedents or both influenced the decision to apply. This opens up the opportunity for the applicants to talk about personal motivation and how their human capital matches with the job. However, the applicants also have the opportunity to display their knowledge of the organisation and the job. It would be expected that applicants would identify the strengths and reputation of the organisation. This provides the impetus to commence creating the psychological contract. • Why do you want to leave your current job? (where applicable) It is never acceptable for an applicant to speak negatively about an organisation, especially if that organisation is a competitor in the same industry.

Interview Preparation

217

It is acceptable to say that present employment does not meet the applicant’s personal career objectives. The applicant can then contrast with the current employer the benefits of the interviewer’s organisation to meet career goals. Generally it is better to speak in terms of opportunities and enhancing learning experiences instead of referring to items such as a low salary as the prime motivator. If organisations are to invest in employing applicants and enhancing their human capital, interviewers do not want to think that the person would leave if a higher paying job was available with another employer. Applicants need to appreciate the subtleness of interview questions and the consequences of their responses. Organisations seek employees who will help them to grow and add value to their talent bank and their responses to questions taken on face value can impact upon the decision-making process. • Why should we hire you? The applicants are being asked if they believe there is a match between themselves and the job and to the organisation. On one level the applicant can outline her or his experiences and skills that would be an asset to the organisation. It is also an opportunity for the applicants to demonstrate their willingness to accept challenges and their levels of motivation and enthusiasm. However, the psychological contract is formed over eagerness and commitment and the applicants can outline their desire for a long-term bond with the organisation and its talent bank. Some employers accept that the tenure of staff within organisations is diminishing and accept that staff will leave for a variety of reasons. The principle underlying this acceptance is that while they are training up staff who will join other organisations in the future, current employees at these organisations, being developed by other organisations, will leave and join their organisation. This takes a strategic industry overview that sees employees leaving some organisations and joining others. Each organisation accepts limited employee tenure and as their staff leave others will take their place. Thus each organisation is investing in industry-based staff rather than individual organisation-based staff. Each organisation needs to determine the appropriateness of this strategy. • What is your objective in life? If an applicant has used a targeted re´sume´, he or she will have incorporated a career objective. This creates the opportunity for the applicants to direct the focus on their career objectives before moving on to other life objectives. Interviewees can suggest that life objectives change, depending on circumstances, and it is up to them to achieve their career/life goals through commitment and engagement (Akhtar, 2012). Outlining career objectives is straightforward if they have been given due consideration. However, life objectives will depend on the individual. Some may want to travel, others may want to start a family or buy a home. But career success determines if life objectives can be met, and so both are intertwined and it is acceptable to point this out. If you establish your career then you can set about achieving other life objectives.

218

Bernard O’Meara

• Where do you want to see yourself after 5 10 years from now? If unprepared, applicants may say that they are unsure because they have not had to consider it before. As mentioned previously, career objectives drive achievements of other life goals. The interviewer is asking the applicant to demonstrate that she or he is considering longer-term planning and commitment to personal and professional development. This question needs to be considered prior to an interview, and an informed response can demonstrate a greater level strategic thinking and the path the applicant wants to take over that time frame. A career path response may include developing knowledge and experience, to seek new challenges (with the organisation) as well as to move up the organisation’s hierarchy if the applicant is good enough. The applicant may also say that she or he is open to change within the organisation by moving horizontally and vertically. This type of response answers the question but avoids saying I want to be the manager of…, as circumstances may not lead to that particular objective. • What are your hobbies and interests? The response to this question gives the interviewer an insight into the non-work life of the applicant. It confirms that there is a work/life balance. As such, the question may be reworded to How do you relax? Or What do you do when you are not working? • Who is your role model in life? A role model need not be famous but may be those in your life who have inspired you. To avoid the question of why these people are your role models you can say My role model is…because he or she… This tells the interviewer what motivates you or is important to you and why. It indicates your priorities, and these can be the basis for much further discussion as the applicant opens up about themselves. In any event you must be able to explain why the person is your role model and how she or he has positively influenced you. • What is the difference between a manager and a leader? Once you explain the difference between the two, the next question may be Which are you or which do you want to be? Contemporary competitive organisations attempting to create a sustainable competitive advantage need both leaders and managers. However, leadership qualities suggest the applicant can create a vision and motivate others to commit to, and achieve it. If applicants have limited work history they may not know if they are leaders or managers. It is acceptable to draw on other life experiences to demonstrate to the interviewer which you think you are. Whichever the applicant chooses, including being both a leader and manager, it must be defensible. • What is more important to you, honesty or performance? Akhtar (2012, p. 59) provides an example on how to answer this question: Both are essential, but honesty, though sometimes underrated, is more important, since, performance without honesty is always short-lived.

Interview Preparation

219

To be a good performer of an organisation, I have to be honest with all its stakeholders: the employer, the employees, the customers and the society. And above everything, I have to be honest with myself.

•

•

•

•

This example shows the creative depth of thinking required by an applicant to differentiate herself or himself from the hundreds or thousands of others who have also applied for the position. It is usual for applicants to think for a few seconds before answering such questions. How important is teamwork to you? Most contemporary organisations have teams of individuals working in collectives to achieve desired organisation objectives. A review of the organisation’s home webpage will quickly indicate if a team approach is used or not. However, to work well in a team environment, staff need to have appropriate interpersonal and communication skills, along with the ability to influence others. Team members do not always agree, but once an agreement is reached on a course of action, each member needs to support it. If you are appointed to a management role how would you motivate your staff? In order to motivate staff, the leader needs to be self-motivated and committed. To achieve this, a leader needs to be able to set realistic and achievable objectives. The leader should consider staff input and ideas and be able to articulate an agreed course of action and show that it is in the best interests of all to pursue this objective. Having constant interaction with staff is important to give them confidence to speak up and offer suggestions or alternatives. Formal and informal interaction with staff creates a psychological link and the leader or manager can better understand what motivates staff and to best approach them when ideas are sought. Do you work well under pressure? Inevitably the majority or applicants will simply say that they do work well under pressure. However, it is best if examples can be given to support this claim. Again, such examples can come from all aspects of a person’s life and not just their work life. The nature of the pressure may vary from timeliness, accuracy, levels of quality, creativity, customer satisfaction, achieving least cost goals or even working in a known dysfunctional environment. Once the applicant is asked the question, she or he can answer with respect to different forms of pressure to show they have an all-round perspective of pressure in its various forms. Another likely question may be How would you cope with this pressure? How would you relate your personal goals with your organisational goals? Hopefully, research will have informed the applicant if the organisation views its staff as assets or liabilities. In any event the question asks the applicants what their priorities are. At times, all organisations require extra effort from their staff by working back late, coming in to work early or working through breaks and weekends. This is almost a universal reality.

220

Bernard O’Meara

Therefore, the applicant’s response should confirm that she or he is prepared to provide extra effort as and when necessary. The applicant may enquire if the conflict between organisational and work goals is constant or less frequent. Applicants may be asked if other family members will accept the organisation’s requirements or not. This question also relates to the work/life balance question discussed earlier. The questions about working under pressure and putting the organisation’s needs above personal goals are important. If the psychological contract includes such discussions, applicants will be happier to help. If not, these may cause the newly employed staff member to view the contract as being breached. Asking the applicant to list their expectations pre-employment may allow the interviewer to tackle these issues at that point so that both parties are aware of what is expected of them. • Do you regret any of your past or present career decisions? This question should not be taken at face value. The underlying themes include learning from less informed decisions and using this reflection to better target career direction. If the question is taken on face value and the applicant says ‘yes’, then the interviewer is left wondering if the applicant has planned her or his career or just tries different jobs to see what they are like. The interviewer may also be thinking that the person does not have any clear direction in her or his life and may not warrant employing a person who may not stay long or who might leave if another job becomes available elsewhere. Looking at the question from the interviewer’s perspective gives applicants an insight into why questions are asked and how answers will be interpreted. Both applicants and interviewers should be prepared and able to answer questions. • What is the significance of failure to you? A failure can be a very useful learning experience and requires reflection. People who can identify errors of judgment and learn from these are people who are seen in a positive and constructive way. Everybody fails at something in their lives but the more astute individuals will not focus on the negative aspects but will see a failure as an opportunity to learn, grow and mature. This is a natural part of life. Failure can highlight personal deficiencies such as a failure to correctly interpret what is happening around an individual or not considering proffered advice. It may highlight a lack of understanding, reflection or not actively listening to those around them. Interviewers may prefer applicants who can not only identify failures but can learn from them as well. This indicates a positive and constructive attitude that accepts that failure is a part of life but the experience can help us avoid such failures in the future. • Are you willing to relocate? This question was discussed in the previous chapter. However, it is another test of career commitment and whether work requirements come before personal objectives.

Interview Preparation

221

Most job advertisements will state if applicants need to relocate as part of their employment. A review of the organisation’s website will show if it operates in different locations or different countries. This will at least suggest to candidates that relocation may be required at some time in the future. In large multinational organisations, graduates may be required to travel to the different operations to get a broad overview of the company. This increases overall knowledge of the organisation and exposes new staff to different cultures and sub-cultures. This growth of knowledge and experience tends to increase the value of the person’s human capital and, in the long term, may lead to the person being identified in the VRIO analysis discussed in Chapter 2. In this sense the option to relocate may offer applicants greater opportunities than remaining in one part of the organisation. In terms of career development, applicants can see this as a beneficial experience that increases their value to the organisation and to other organisations. • Would you consider leaving us if you were offered a higher position by another employer? The applicant is being asked if money and/or status motivates him or her and to what extent. While organisations accept that staff will leave them and new staff will be employed, they are, understandably, hesitant about employing a person who will leave perhaps after a very short period of time. When employing staff, organisations are committing current and future financial and other resources. From a purely financial perspective, organisations want a return on their investment in staff. The loyalty of applicants is also being tested and a part of the psychological contract from the organisation’s perspective may be that it expects new staff to remain with it for as long as is mutually beneficial. • What are your expectations of us? This gives the applicant the opportunity to outline realistic expectations and confirms that the applicant has correctly interpreted what the interviewer has said. At this point the interviewer can clarify any misinterpretations made by the applicant. However, it is also reasonable to argue that interviewers, on behalf of the organisation, outline their expectations of the applicant. Any miscommunication or misinterpretation should be investigated and resolved openly and honestly. This will ensure that if a job offer is made, the psychological contract will become a strong and clear bond. This question is generally used at a final interview or just prior to the offer of employment. If the offer is made at the same time as this question is asked, then applicants may be influenced by the offer and not raise any pertinent issues that may cause issues in the future if not adequately addressed upfront. • Would you like to know anything about our organisation? This is generally the last question before closing the interview and outlining the rest of the appointment process for the applicant, where this is appropriate. The question may be reworded to Do you have any questions you would like to ask?

222

Bernard O’Meara

At the recruitment interview, applicants will be expected to ask general questions about the job itself or the organisation. However, at the selection interview, applicants can ask about more specific areas such as support for undertaking education programs, travel requirements or organisation-specific questions. If the interviewer does not outline the salary for the position at this point it is reasonable to ask what the salary range for this position is. A salary range allows both parties room to negotiate where possible and other employee benefits and conditions will be outlined as well. The above questions will not all be asked of each applicant but interviewers may use several of these questions reworded and customised to their job vacancy and organisational requirements. Each question has a purpose and applicants need to be aware of what the interviewer is actually asking (Akhtar, 2012; Domeyer, 2007).

7.9.

Job-Specific Questions

The previous section outlines a number of general questions that applicants may be asked. However, at the recruitment interview the questions asked will usually be job specific. If the applicant is seeking a professional career then the following questions may be asked: • • • • • •

Why did you choose a career in architecture? Have you always wanted to be an accountant? As a pilot you must like flying. Do you have your own aircraft? As a mine engineer are you conversant with using explosive charges? What are the core aspects of being a medical practitioner? As an economic analyst you must be aware of overnight international pressures. How do you monitor these and still work during the day? • As a fitter and tuner have you used computerised lathes? • As a welder you will be expected to use MIG, TIG, ARC and Bead welding in the production area. Can you use these different welding types? At the recruitment interview, the focus is on determining suitability and meeting minimum job requirements. As a lead to the interview a general question may be asked, such as Why did you choose a career in architecture? Such a question can appear to be non-threatening and an applicant can readily explain what motivated her or him to pursue a career in the chosen field. The questions can then bring out the applicant’s knowledge and experience in the area, such as the example of the welder and the ability to use different types of welding proficiency. The questions will vary depending on the job, but after a lead in question the direct and probing-type questions are used to determine overall job suitability.

Interview Preparation

223

Once suitability is determined, the interviewer may change topics and commence investigating other aspects of human capital, talent and potential. Questions can also tease out career aspirations and direction and lead to questions about soft skills.

7.10.

Preparing for Specific Interview Types

There are situations where applicants can prepare for specific types of interviews. Each will commence with non-threatening closed questions designed to settle any applicant’s nerves and to establish a rapport between interviewer and applicant. However, beyond these questions the nature of the interview may change, depending on the applicant and the job. Behavioural interviews are used when the applicant has an established work history. Based on the premise that past behaviour can predict future behaviour, the interviewer probes the applicant’s work history. Questions draw out how the applicant has behaved under different situations. A person with experience in the retail industry may be asked questions such as: • How have you dealt with difficult customers in the past? Secondary questions may include: • • • •

Why did you handle the situation that way? Was the outcome successful? Did you learn anything from the experience? How would you act if the situation happened again?

The questions explore the applicant’s previous behaviour and how this impacted on the person as a learning experience. The responses to these questions are used to forecast future performance in a job. Barclay (2001) argues that behavioural interviewing has many advantages over other types of interviews and question types. Evidence suggests that the predictive ability of behavioural interviews is valid, but cautions that a person’s behaviour can change over time. As a consequence, the predictive validity assumes that a person’s behaviour does not change and it is therefore indicative of performance, but is not an absolute guide. Providing this is considered, Barclay (2001) believes that behavioural interviewing is a legitimate means of gathering data about an applicant and predicting her or his future performance. Applicants can prepare by reviewing the material used to create their re´sume´s and if they have used targeted re´sume´s then they will have already mapped out the human capital used to be successful in previous jobs.

224

Bernard O’Meara

Situational interviews are used when the applicant has very little work history and, as such, past performance is limited and highly reliable predictors of future performance are also minimised. McKeown and Lindorff (2011) found that graduates often entered the workforce by perseverance rather than by good career management. This in part came about as graduates often have high and unrealistic expectations and apply for jobs for which they are not yet ready. The other issue was that not having a sound work history they had no job-ready skills and had to develop job competencies on the job which was difficult because they had no job to get experience. The situational interview presents applicants with hypothetical questions to determine how an applicant would react to different but very real situations. A core question would be: • How would you deal with a customer who noisily demanded a refund for a product that was out of its warranty period? Follow-up questions could include: • Why would you handle the situation this way? • If your initial approach was unsuccessful and the incident escalated, what would you do? • What other options might you consider? In lieu of work history and the capacity to use a behavioural interview, applicants are presented with situational (hypothetical) questions and asked to outline how they would cope with different scenarios. While the interviewer can evaluate the applicant’s responses to these situations, more can be learnt about how the applicant thinks logically and empathetically and what their priorities are. Is satisfying the customer’s needs, even though the product is out of warranty, more important than being correct and reminding the customer of the warranty cessation? The applicant is giving an insight into their ethical beliefs, thinking and priorities. However, the level of subjective evaluation through interviewer bias can potentially negate any useful information. Applicants can prepare by researching the competencies and soft skills required of people in such jobs and the likely interaction with other staff, customers, suppliers and other stakeholders. Situational interviews are useful in that they give a limited insight into the applicant’s personality, and the more research an applicant does the more she or he can anticipate situational questions. Anticipating specific questions may be difficult, however the applicant can predict the type of questions to be used. Phone interviews can be used as recruitment hurdles (the applicant must get past these to continue with the appointment process) or where the applicant is some distance from the interviewer. Appendix K provides an example of a phone interview screening template.

Interview Preparation

225

Preparation can be undertaken as if the applicant was participating in a situational or behavioural interview. The difference is that the interviewer can hear, but not see, the applicant. Interviewer bias can occur by the interviewer interpreting the verbal responses by the applicant. This can include: • Time taken to respond to questions • Long periods of silence as the applicant and interviewer cannot use visual cues to stimulate or continue discussion • The tone and timbre of the applicant’s voice • Trying to interpret inflection • Analysing the vocabulary used by the applicant With no candidate to see, interviewers may focus on the information they have as conveyed by the applicant’s voice. Skilled interviewers will continually check their own bias or reasons for interpreting verbal cues from the applicant. The use of webcam, video and streaming interviews are similar, but consideration needs to be given to the visual perspective of the interviewer. Applicants should prepare for each type of interview and each component such as visual and audio cues and these should be considered from the perspective of the interviewer. The applicant may want to reduce background noise, adjust poor lighting or lighting that is too bright, proximity to the camera and microphone and other such items that may negatively impact upon the interview and the applicant’s chances of success. Group interviews are efficient as a number of applicants participate at the same time in an interview with several interviewers. Each interviewer will have a part to play in the interview which is orchestrated to elicit relevant information from each applicant. Prior to the interview the interviewers would meet and agree on what questions should be asked and by whom. A complete review of job analysis and selection criteria would be undertaken to ensure objectivity and that each question had a purpose for being asked. Initially group interviews were arranged so that each applicant was asked the same questions and the whole panel of interviewers evaluated the responses. Following the interview the interviewers would then meet to discuss their evaluation of each applicant’s response to each question. More recently, group interviews have evolved to cope with increased competition for valuable talent and increased numbers of applications. This evolution means that a number of interviewers still interview a number of applicants at the same time but the difference is in regard to the questions. Instead of each applicant being asked the same questions one after the other, each applicant may be asked different questions. Previously, when the first applicant was asked a question the other applicants knew they would be asked the same questions and could prepare answers while other applicants were giving their responses. In contemporary group interviews, each applicant may be asked the same or similar questions initially, but further into the interview applicants are asked

226

Bernard O’Meara

different questions and they need to cope with the change in interview strategy. Applicants need to think quickly as their pattern of responses is disrupted by the change of questions. Applicants can prepare as if they were going to be asked the same questions as other applicants. However, advanced knowledge that a group interview will be used allows the applicants to prepare answers to behavioural or situational interviews but they should be prepared for the change in questions asked. The use of mental imaging may be useful in providing the applicant with the resolve to cope with the change in questions, already knowing when the questions will change in the interview. Stress interviews are used to determine how an applicant responds to stress and provocation as well as how they can retrieve such situations from perceived hostility and conflict. In a stress interview, the interviewer may ask questions quickly and give the impression of wanting to finish the interview as quickly as possible. In other stress interviews the interviewer may ask questions in a very indifferent tone supported by body language indicating indifference. In another stress interview the interviewer will establish a very good rapport with the applicant and appear encouraging and engaging early in the interview. However, once the applicant is very relaxed, the demeanour of the interviewer will change with aggressive body language, raising her or his voice and standing up appearing ready to leave the venue. The interviewer may yell and thump his or her fists on the table or desk. The suddenness of the change may catch unwary applicants out as they try to work out what is happening and why. However, the stress interview is used to evaluate an applicant’s reaction to assertiveness and aggression, as this is what the successful applicant may face in the job — generally a senior role with an organisation. While the interviewer is evaluating the applicant’s response to this change, she or he is evaluating how the applicant can retrieve the situation and restore normality. Instead of the applicant being a passive participant in the interview, the person takes on an active role to reengage the interviewer and calm the situation. Applicants who react emotionally or aggressively will probably react the same way if they encounter a similar situation in the job. Applicants in senior roles in organisations are expected to cope with difficult situations without losing their temper or being goaded into more conflict. Akhtar (2012) suggests that applicants can prepare for such interviews. It is suggested that applicants be confident in the material they present in the interview but not to be argumentative with the interviewer. Ensure a positive display of body language, do not become defensive and answer questions calmly. If a person is applying for a senior role within an organisation, the person should be prepared for an unannounced stress interview. Applicants are not told they will participate in a stress interview as they will prepare themselves accordingly. A positive outlook and developing the mental resolve to deal with the intensity of the stress interview is essential. At times middle management applicants may be involved in a stress interview, especially if the successful applicant may be offered more senior roles in the organisation in the future.

Interview Preparation

227

As pointed out in an earlier chapter, stress interviews may also be used for recruitment to the diplomatic service and the military.

7.11.

Questions to Ask to the Interviewer

As discussed earlier, organisations expect applicants to conduct research on their potential employer. Hence, specific questions used in interviews are designed to see how much information the applicant has gathered and how it has influenced his or her decision to apply for the position. However, the research can also be used to craft questions for the applicant to ask to an interviewer. The questions can be used to access new information or to confirm information gained from research on the organisation. Davies (2012) suggests that applicants can determine if the organisation will give them the opportunity for the growth and career development that she or he seeks via questions to the interviewer. Questions to ask interviewers can include: • • • • • • • • •

When will the successful applicant be expected to commence in the role? What are the working hours? Does the organisation provide support for further education? Who will the new employee report to? Is there an induction or orientation program? How will performance be evaluated? Is there a trial or probation period? Is the role part of a team? What training will be provided?

Of course the questions to ask the interviewer will depend on the job, the organisations and the needs of the applicant. Other questions may arise as part of the interview itself. Salary is rarely discussed until it is raised by the interviewer. Ultimately, the applicant needs to make an informed decision about continuing with the appointment process or to withdraw from it. This compatibility can be determined by research, listening to what the interviewer has to say and by asking the right questions. The interview is a two-way process and it must furnish both participants with the necessary information to make an informed decision.

7.12.

Summary

This chapter has focused on the preparation that applicants can make prior to an interview. The rationale for preparing for an interview was explored and introduced the general preparation that applicants can undertake to increase their chances of success. The sources of information that applicants and interviewers can source relevant information in preparation were outlined. Both objective forms of preparation and

228

Bernard O’Meara

preparation to offset any potential unskilled interviewer bias were outlined. It was argued that applicants need to understand how interviewers prepare for interviews and vice versa. General preparation such as knowing where the interview will be held, determining the expected dress code and having a copy of their re´sume´ to take to the interview were discussed in order to help applicants prepare. The creation of a mental image of the applicant by the interviewer was discussed and how this can occur before the two even meet. Research regarding subjective impressions and the impact on employment decision making was discussed to provide both applicants and interviewers with these outcomes to avoid unintentional bias on the interview. The subtle change that occurs when an applicant moves from one organisation to another or from one system to another was outlined to illustrate how a person’s status changes when they join a different organisation. The difference between recruitment interviews and selection interviews was discussed and the distinct roles they play were explored to highlight and contrast some of the different components of the appointment process. A range of general questions that can be asked by interviewers was provided. These were accompanied with the rationale for asking the questions, different wordings used and examples of how responses can be crafted to these questions. These questions are used in a variety of interviews and pertinent research on these questions was presented. Job-specific questions were discussed and preparation for these was also outlined. Preparing for a range of interviews was discussed including: • • • • •

Behavioural interviews Situational interviews Phone interviews including webcam, video and streaming interviews Group interviews Stress interviews

These types of interviews were highlighted as they have unique characteristics which applicants should understand prior to engaging in them. The use of these interviews was discussed so that applicants could anticipate the most likely type of interview they will encounter and can prepare for accordingly. The final section of the chapter dealt with questions that applicants can ask or should ask and when to refrain from asking them. The question regarding salary should be raised by the interviewer rather than the applicant at the right time. The chapter closed with a review of its original intent. Applicants need to prepare for interviews as much as interviewers. Both should know how the other prepares so they appreciate and value each other’s input.

Interview Preparation

7.13. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

229

Review Questions

Why is it important for applicants to prepare for a job interview? What areas can an interviewer draw upon to generate questions for applicants? How can applicants anticipate interview questions? What are subjective forms of bias? How can a re´sume´ create a mental image in the mind of an interviewer? Is the preparation for a recruitment interview the same as preparing for a selection interview? Why are some forms of questions used in the majority of interviews? Can people on working holidays in other countries anticipate questions they will be asked? What is the difference between general interview questions and job-specific interview questions? How can an applicant prepare for a situational interview? How can an applicant prepare for a behavioural interview? Can applicants anticipate and prepare for a stress interview? What questions should applicants ask an interviewer? Can interview preparation by applicants affect the validity of interviews? What is the benefit of participating in a mock interview?

7.14.

Learning Activities

1. Prepare for, and undertake, a videoed mock interview. 2. Talk to employers in your region and explore the questions they ask of applicants in interviews. 3. Identify one or more organisations and use the Internet and social media to determine if the organisations provide sufficient information on their websites for applicants. 4. Identify a failure in life or construct a possible failure and determine ways to turn this into a learning opportunity. 5. Decide on your ideal job, ideal organisation and ideal industry to work in. Research these to decide the minimum salary and conditions you would accept if offered a job. Explain why.

Chapter 8

First Impressions Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • • • • • •

8.1.

Appreciate the mutual importance of first impressions Understand the dynamics at work in the interview Value the importance of the interview Appreciate the input of both parties Understand the need for both parties to understand each other’s role Value the need to evaluate the interview

Introduction

Previous chapters have outlined how an organisation prepares to recruit and select new staff and how job tasks relate to its strategic direction. Any organisation engaged in these processes needs to commit current and future resources in the forms of salary, benefits, training, education and the investment in, and development of, talent. Organisations drive strategic success and achieve a sustainable competitive advantage through the appointment and development of new staff. The acquisition of talent is expensive and interviewers need to decide on the best applicant to appoint for objective, strategic and defensible reasons which also comply with relevant legislation. The bulk of the selectors preparation is focused on the interview as this is, in many instances, the first time the interviewers and applicants meet. The preparation commenced once the organisation determined its philosophical view of staff — are they an asset or a liability. An appreciation of the relationship between people, performance and profit or other outcome also influences the appointment processes.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

232

Bernard O’Meara

If the organisation invests in staff and adopts a resource maximisation approach, then this will underscore the interviewers’ approach to the first meeting. The determination of the relationship between the vacant job and the organisation’s short-, medium- and long-term needs of the organisation will possibly mean that the interviewers are considering both filling the vacancies and procuring talent and potential. The review of a vacant position identifies what specific job tasks need to be undertaken as well as if the new employee will need talent that will locate the person in a VRIO gap. The organisation should understand the systems perspective at work when a new employee leaves another employer or finds work for the first time. The appreciation of the various systems and sub-systems that involve the organisation and the new employee provide an understanding of the forces that have helped shape the person and how she or he will best fit into the organisation and its culture. The applicants will have also undertaken their preparation by crafting their re´sume´s around the selection criteria or KSAs and by using the internet, social media and friends, family and networks to decide if they want to work for the organisation. Both the interviewers and applicants draw upon their preparation for the interview and the better prepared both parties are, the better. Those organisations considered preferred employers or the best companies to work for can also use their status to tell the community of vacancies. In 2013, Fortune, Asia Pacific Edition, printed its list of the 100 best companies to work for and noted that 78 of these organisations were seeking to fill nearly 67,000 jobs. Business magazines in most countries publish similar lists which also outline why these organisations are so highly regarded (Moskowitz & Levering, 2013). This chapter discussed what happens in the interview and what cannot be prepared for by either party. There are a number of dynamics at work throughout the interview and these are explored in this chapter. What things can happen in an interview that cannot be prepared for? The following gives a light-hearted idea of what applicants include in their re´sume´s for interviewers to follow up in interviews. ‘Wholly responsible for two (2) failed financial institutions’. ‘It’s best for employers that I not work with people’. ‘Note: Please do not misconstrue my 14 jobs as ‘job-hopping’. I have never quit a job’. What can happen during an interview? ‘Applicant challenged the interviewer to arm wrestle!’ ‘(The applicant) Interrupted (the interview) to phone his therapist for advice on answering specific interview questions’. ‘(the applicant) had a little pinball game and challenged me to play with him!’

First Impressions

233

Unfortunately the above examples are taken from real re´sume´s and interviews and were originally printed in Fortune Magazine on 21 July 1997 (Zoltners, 2013). Because people prepare for interviews it does not automatically ensure the best possible outcome. Interviews involve people and people are not always predictable.

8.2.

The First Meeting

As pointed out earlier, the applicant has as much ‘power’ in the interview as the interviewer. Both want to achieve specific outcomes so they can make an informed decision about the fit between the applicant and the job/organisation. Unfortunately, it may not be till the interview that applicants learn of broader job or organisation requirements. O’Meara and Petzall (2007) found that in the case of senior appointments organisations may have a set of informal or unstated selection criteria. These can involve deciding how the applicant would carry herself or himself in a television or other media interview. Other unstated criteria may revolve about how effectively an applicant can express herself or himself and how effective their communication style would be in the print media. In some cases, there may be a previous record to draw upon but if not, then the interviewers must make a recommendation to the Board. The appointment of a CEO may be considered from a variety of different perspectives. The relationship between the CEO and the Chair of the Board and other directors is important and can impact upon the appointment of a CEO. Organisational antecedents also impact upon such an appointment. An organisation moving into a new market or operating in a highly competitive market will tend to employ applicants from outside the organisation or those with limited tenure but whose performance can be evaluated. An organisation in a stable environment will tend to choose to appoint internal applicants. A CEO may be employed to devise a strategy for the organisation and submit a proposal to the Board once this is completed. Other organisations may appoint CEOs to implement a strategy designed by the Board. At times, interviews can serve purposes other than just filling the vacancy (Datta, Guthrie, & Rajagopalan, 2002; Guthrie & Datta, 1997; O’Meara & Petzall, 2007; Rajagopalan, Datta, & Guthrie, 2001). A consequence of a single European Market is that selectors (especially French selectors) began seeking Eurograduates to become Euromanagers. In this case, selectors sought those with a distinctive European management style and more French organisation began recruiting potential managers outside of their own nation (Keenan, 1995). Thus, a host of other forces come to bear on the interview. Any preconceptions of either the interviewer(s) or applicants will also impact positively or negatively on this activity. These may be formed well prior to any meeting, as outlined in the previous chapter.

234

Bernard O’Meara

Human interaction of any type occurs on many different levels. There can be a physical reaction to others in the way people smile, frown or show indifference or genuine interest. Good eye contact or avoiding eye contact may give rise to concerns or reinforce a view that the person you are meeting for the first time is a pleasant and friendly individual. First impressions are important as they determine if there will be any future interaction. If one person forms an unfavourable impression of another, then there will probably be further interaction between the two. Secondly, first impressions create expectations about each party and determine how each will be able to influence the individual’s attention to, and interpretation of, the other’s behaviour. ‘In initial encounters one determines if the other is a friend, a foe, or irrelevant to our well-being’ (Berscheid & Regan, 2005, p. 236). When we meet people for the first time, we tend to categorise them unconsciously. Social categorisation means we compare strangers to people we have met in the past and we liken the person we are meeting with others we have met by categorising them as friends or in other categories stored unconsciously. With respect to similarity-attraction theory we can liken people we meet to ourselves. Unconsciously we may favourably categorise a person because they are similar to ourselves in terms of likes, behaviours, education level achieved or even because they appear to like a similar colour that we like as well. From an interview perspective, unskilled interviewers may categorise an applicant with former or current staff based on unconscious subjective bias. A person with a similar work ethic to the interviewer may be more highly evaluated than a person who is not categorised in this way. The same is true for an applicant who displays a similar value and belief system to ourselves or others who we hold in high esteem. Because these impressions are almost instantaneous, interviewers may not even be aware that they have already decided if the applicant is suited for the position by the time initial introductions have finished. While Springbett’s research indicated that the accept/reject decision of an applicant is made in the first few minutes of an interview, Dipboye (1992) confirmed that many of these decisions are made prior to the conclusion of the interview. Both Spingbett and Dipboye agreed that interviewers make up their minds about applicants before reviewing the information gained throughout the interview. Hence, interviewers may cope with this unwanted bias in a number of ways: They may prefer panel interviews so that input from multiple sources may be used to arrive at a consensus decision. The assumption is that the more people involved in the process, the more transparent it should be. The interviewer(s) may seek the applicant’s approval to record (audio and/or video) the interview so that following the interview there is an unbiased copy of the interview that can be used to help the interviewer(s) reflect on responses made by applicants rather than rely on memory. At the commencement of the interview the interviewer(s) may explain to the applicant that they will need to take written notes throughout the interview. Aspects

First Impressions

235

of these notes can be summarised and fed back to the applicant to ensure an accurate interpretation of the applicant’s responses has been recorded. At the conclusion of the interview the applicant is given the opportunity to read through the notes to ensure their accuracy. The use of a decision matrix may also be used. This is another means of assisting the interviewer(s) to focus on the objective selection criteria and KSAs in order to avoid bias. A very simple decision matrix (Table 8.1) is constructed by a panel prior to the interview and can take several forms. In Table 8.1 each selection criterion is identified and listed in order of importance as decided by a panel of experts prior to the interview. As each criterion is listed in order, each can also be given a weighting in accord with level of importance. The panel decides on criterion importance as well as their weighting. There may be hurdle criterion such a commercial pilot must have a current commercial pilot’s licence for the type of aircraft to be flown. This hurdle means that if a person does not meet this criterion, to possess a commercial pilot’s licence, then the person is not suitable for the job. This is a must have type of criterion and would weighted at 10/10. An ideal, but not necessary, criterion may be that the pilot has flown to a specific airport. This may be ideal but not essential and its weighting may be 8/10. A criterion regarding the development of flight crew might be ideal but not essential and have a weighting of 6/10. Apart from determining the weight and level of importance of criteria, the panel would also determine and state what score an applicant can be awarded. For each criterion a definition would be provided stating that a candidate will score 10 if she or he … Each score for each criterion is determined so that interviewers can score applicants for each criterion.

Table 8.1: A sample decision matrix. Weighted selection criteria, KSAs

Applicant A

1 (weighted at 10)

Scores 7 (Total = 49)

2 (weighted at 7)

Scores 5 (Total = 35)

3 (weighted at 6)

Scores 8 (Total = 48)

4 (weighted at 5)

Scores 10 (Total = 50)

Total

182

Applicant B

Applicant C

Applicant D

Applicant E

236

Bernard O’Meara

A criterion may have a weighting of 7 and an ideal applicant may score 10 by meeting the definition of what an applicant needs to score 10. Another applicant may only score 6 because he or she only meets the definition of a 6 for that criterion. The weighting of each criterion is multiplied by the score given to the applicant. A criterion weighted at 7 and an applicant scoring 7 would be given a total for that criterion of 49. The total of each applicants score per criterion is then added. The total scores for each applicant can then be compared. An interviewer using such a matrix would focus on gathering information from the applicant to determine what weighting they should be given for each criterion. This simple device may help keep an interviewer focused on the more objective aspects of the interview, but will still not totally eliminate bias. Applicants can create a similar matrix to help them decide if they wish to pursue the vacant position further. There are a number of ways to reduce bias such as similarity-attraction and social categorisation, including not having an interview at all. However, judgement and interpretation are human characteristics and inevitably enter most situations that people encounter. Berscheid and Regan (2005) cite research that shows individuals can evaluate a smile or a person’s attractiveness in 20 150 milliseconds or faster than a person can blink. Where a person constantly refers to a specific category and its use may become chronic. In this case, the person is likely to categorise all persons that she or he meets in the same way. Chronic social categorisation and person constructs are unique to each individual and are based on their own experiences and history. It may be easier for colleagues to recognise this than the individual herself or himself as the person may be unaware of this predisposition. This is important where the same people conduct interviews as they may start categorising most or all applicants in the same way. In this case, suitable applicants may be rejected for the wrong reasons, and as the interviewers continue to interview, Dipboye’s self-fulfilling prophecy (1982) comes into play.

8.3.

Expectancy

Pre-interview perceptions can cause interviewers to expect certain outcomes in an interview. If the interviewer expects an applicant to support assertions made in their re´sume´, then the person will engage in the interview with this expectation. The expectation is primed and only needs confirmation during the interview. According to Berscheid and Regan (2005, pp. 241 242): Although expectancies facilitate speedy control over the environment by increasing category accessibility, once again we sometimes pay the price of error because expectancies not only influence the speed with which events are perceived, but they also often influence what events capture our attention and how these events are interpreted.

First Impressions

237

Interviewers may seek confirmation of pre-interview expectancies during the interview and may also steer the applicant towards confirming behaviour where they expectation is strong. Where the expectation is not met, unskilled interviewers may then reject the applicant because the expectation was not met. Expectancies generated during the first interview may be so strong that applicants do not get a second chance to ‘redeem themselves’ and this outcome can determine the relationship of the applicant with the interviewer(s) and the organisation. It then becomes difficult to change the nature and direction of this relationship. Once a successful applicant commences with an organisation, the original interviewer’s expectancies would be passed on to line and other managers about what they could expect from the new employee. If the applicant met these expectancies, the interviewer and management would agree that they got it right. However, if the expectancies are not met, the interviewers and management may categorise the person as a ‘failure’ and any subsequent applicants categorised with this person would also be classified as potential failures and not suitable for the job. First impressions count. Berscheid and Regan (2005) also argue that individuals will act differently in different situations with different people. They cite research indicating that people organise their memories around relationships. Each person has a self-image of how they act in a given relationship; they have a view of the other person with whom they are interacting and they have a ‘script’ that forges the expected pattern of interaction between the two. Thus, an interviewer may categorise a person with a friend and treat the applicant accordingly. Another applicant may be categorises along with others held in low esteem and they will be treated accordingly. In everyday life, people will express themselves by saying things such as ‘You remind me of…’ Another variable is the mood dependent memory. An interviewer may have been reading an applicant’s re´sume´ when something happened, such as a colleague announcing his retirement or a colleague being injured. When the interviewer uses questions to probe the applicant on that particular part of their re´sume´, the interviewer may recall the event as she or he associates the incident with the re´sume´. In this case, the mood of the interviewer can change from one of expectancy to one of regret or grief. This can take the applicant by surprise as she or he tries to determine what they have said or done to create the change in atmosphere. This change in applicant confidence may be noted by the interviewer and both parties may become less secure in the process they are engaged in as emotion clouds objectivity.

8.4.

Perspective

Individuals can also have a different philosophical perspective to others and can view staff and potential staff as assets or liabilities. As mentioned in previous chapters, individuals and organisations have both shared and conflicting perspectives.

238

Bernard O’Meara

However, most organisations will have a prevailing culture and underlying philosophy and this is usually reflected in the interview. At a very simplistic level it is easy to contrast unitarism and pluralism. It will be recalled that the unitarist perspective views all parties as having common goals and inputs — we are all on the same side. This can translate into the interview via statements such as ‘we are looking for team players’ or ‘the company expects all staff to…’ or via questions such as ‘if you are asked to work back late, can you do that when required?’ In this instance, questions will be framed to ensure that applicants will comply with organisation requirements. However, if the organisation has a pluralist perspective, questions will be couched to bring this to the fore during the interview. There is, of course, a wide range of perspectives that can impact upon the interview and its conduct. Interviewers can self-monitor for bias and attempt to correct this when identified. However, it is difficult to separate the interview from organisation philosophy, belief and value systems. These forces may be quite subtle and may be more obvious to the applicant than to the interviewer.

8.5.

Establishing a Relationship

While the interview may be the first time the applicants and interviewers meet, the parties are not there to establish long-term friendships. However, a relationship is forged. The interviewer is attempting to see ‘the real applicant’ not the fac¸ade generally presented, which anticipates what the interviewer may like. The interviewer is attempting to accurately forecast the behaviour of an individual, once employed. Often applicants present themselves in the most favourable way in order to impress the interviewer(s). However, once employed, their behaviour may change and the interviewer may feel deceived by this change in behaviour. Thus, the interviewer(s) and applicants both have their own differing motives. Both want the other to be honest, sincere and to provide as much relevant information as possible. The interviewer wants the applicant to disclose relevant personal and work-related information about herself or himself, while the applicant wants to know as much about the job and the organisation as possible. Both parties want to trust each other. At times, there will be strong social chemistry between the interviewer(s) and the applicant, and the interview will go smoothly. On other occasions, it will take a degree of effort by one or both parties to avoid long periods of silence. One or both parties need to accommodate the other for the interview to proceed (Dipboye, 1992). Accommodation can also take several forms. One person, usually the applicant, in the interview can accommodate the other by mimicking or mirroring (symmetry)

First Impressions

239

the behaviour of the other, the interviewer. This is often regarded as a form of flattery, as the applicant takes her or his cue from the interviewer. This form of symmetry can involve mirroring gestures, body movements as well as vocal behaviour and intensity, and pauses. Mirroring can also indicate that the applicant likes the interviewer and that is the reason for engaging in symmetry. The alternative to mirroring is compensatory behaviour. This means that if the interviewer speaks very little the applicant will compensate by speaking more. If one party is dominant, the other will be more submissive or if one uses lots of gestures, the other will use few gestures. Typically, the interviewer is dominant, but does little talking while the applicant does more talking in response to the interviewer’s questions. This is a typical interview scenario and should not be confused with compensatory behaviour by the applicant.

8.6.

Trust

Although an interview may last from 25 minutes to two hours or more, the interviewers needs to establish a degree of trust between themselves and applicants in an extremely short period of time. Caproni (2005, p. 87) says: … trust helps us face the inevitable risks of everyday life so we can rise above our fears, take productive action, and experience tranquillity and happiness in a complex, unpredictable, and sometimes threatening world. Trust is a leap of faith that other people and organisations will not take advantage of us in vulnerable situations such as selection interviews where honesty is required. Establishing a degree of trust in an interview takes skill, but once established, encourages applicants to speak more freely about themselves, their human capital and potential. Free and open communication benefits both the applicant and the interviewer(s) and enhances the opportunity for making informed decisions. While trust and likeability are benefits for an interview situation there is the possibility that applicants may confuse these personal traits of interviewers with characteristics of the organisation itself. Hence, the interview finishes with a review of expectations and a summary of relevant information gathered. Establishing trust at the initial interview can influence the decision of better applicants to join the organisation. From a strategic perspective those organisations seeking to achieve a sustainable competitive advantage through staff can be more attractive as an employer, compared to other organisations. The verification that trust is warranted by the applicant then moves to line mangers once new employees commence their job. This process is made much easier if

240

Bernard O’Meara

the new employee developed trust in the interviewers and believes this reflects the trustworthiness of the organisation as a whole. Trust enhances communication as applicants feel they can discuss themselves more openly and honestly and they will be listened to and given a fair hearing. Where trust is developed in the interview, a more holistic overview of the applicant can be gained and this helps ensure there are no misinterpretations of the applicant’s responses to questions. Rather than being a nice-to-have luxury, trust in organizations is increasingly being viewed as a source of competitive advantage. This is because high-quality relationships — those built on trust — provide economic value to the organization, take a long time to develop, and cannot be easily copied by other organizations. (Caproni, 2005, p. 89) The development of trust in an organisation and its staff commences in the interviews, as this is generally the first time that applicants and representatives of the organisations meet, elicit information and make a decision about mutual fit. If trust is not developed in the interview, then it is more likely that applicants will not proceed with the appointment process and they are more likely to leave the organisation after a shorter period of time than considered ideal. An employment interview involves uncertainty about the future in terms of job security, job and organisational fit and talent investment. To some extent, applicants who develop trust in the interviewers are sharing the control of their future careers with the interviewers. By trusting the interviewers, applicants place themselves in the hands of the interviewers and have confidence that they will treat them fairly and equitably. The place their careers in the hands of the interviewers and the development of mutual trust means they are more prepared to do this. There is also an element of risk involved in employment interviews. Where career and financial independence are at risk, applicants trust the interviewers in the belief that the benefits of doing so outweigh the potential loss or non-employment. The degree of perceived uncertainty and risk will depend on the trust and relationship established between the interviewers and the applicants. This potential uncertainty and risk is mutual. Interviewers trust that applicants will speak openly and honestly. Inevitably interviewers will make a decision about employing an applicant, and uncertainty and risk are reduced by the interviewers’ preparation, targeted interview questions and their skill in analysing applicants’ human capital and suitability. Interviewers know that if they appoint the wrong person, costs will increase and morale of staff may be lowered, as they begin to lose confidence in the organisation’s ability, via interviewers, to employ the right staff and retain them. The interviewer’s reputation is at risk. Throughout the interview, both the interviewers and applicants will determine each other’s trustworthiness based on perception. Interviewers and applicants can

First Impressions

241

only determine trustworthiness via perception of each other’s verbal and non-verbal behaviour and body language. If one party finds the other aloof or unable to be fully engaged, then an appropriate perception may arise. However, if both parties mutually perceive each other as eager, engaged, communicative and interested, then the interview will generally proceed smoothly. The more information available to applicants and interviewers during the interview, the better both are able to judge each other’s trustworthiness. While this may, in part, be highly judgemental, it is how people learn to trust each other and develop a strong employment relationship and psychological contract. Strategic organisations will attempt to create an environment of trust throughout the interview so they can engage applicants, learn more about them and come to an informed decision regarding fit and employability. The greater the level of trust and engagement, the more likely the better applicants will be employed. Personality also plays a part in developing trust. Those people, having grown up in supportive nurturing environments, will be more likely to be trusting of others. The reverse may also be true. People who are more trusting of others will be more communicative and are more likely to engage in open and honest dialogue. Caproni (2005, p. 93) argues that the assessment of a person’s trustworthiness is based on our perceptions of: • Competence — People can demonstrate their work-based competence achievement and quantifiable outcomes. A competent person can express herself or himself confidently about work history and achievements. Job and competence-based questions during an interview will identify if a person is competent, achievement-driven and outcome-focused. This may infer that the person is committed to their work and that she or he is capable of very high standards of quality, timeliness and accuracy. It tells the interviewer about the person. • Consistency — Where a person can demonstrate consistency, then the interviewer is more likely to accept that this behaviour is an imbedded trait or value. A consistent achiever across work and non-work aspects of life is more likely to be trusted by the interviewer, as there is evidence of consistency. Applicants may claim consistency, but interviewers will seek proof of this and are less likely to accept an unsupported claim of consistency. Where consistency is proven, interviewers are more likely to trust the applicant’s responses to questions designed to determine consistency. • Communication — Where applicants are engaged, open and honest, they are more willing to disclose and share information with the interviewer. Applicants who are ready and willing to explain themselves or apparent discrepancies may be evaluated more highly than applicants who avoid areas, are defensive or closed. This is human nature. • Caring — If an applicant believes the interviewer has their best interests at heart, then they will be more trusting. This confirms to the applicant that the interview is indeed of mutual benefit rather than just benefitting the interviewer or organisation.

242

Bernard O’Meara

Similarly, if the interviewer believes the applicant is trying to provide clear, honest and reliable information, the interviewer is more likely to trust the applicant and her or his responses especially where evidentiary support is given. However, the interviewer will use different questions to help them decide if the applicant is aware of the feelings and efforts of their colleagues and is respectful of them. An empathetic person may work well in a team or in a people-oriented role such as talent acquisition, HRM, health services, sales and marketing or customer service roles. • Reliability — Interviewers will seek information that clearly demonstrates that an applicant is reliable. Interviewers will use different questions to probe an applicant’s reliability across the work and non-work areas of a person’s life. If reliability is proven to be consistent, the interviewer will be more confident that the applicant will also be reliable in the job if appointed. Those with limited work history can still demonstrate reliability across other aspects of their lives and allow the interviewer the opportunity to determine if reliability is a characteristic of the applicant. • Fairness — Behavioural and situational questions can be used to establish if the applicant treats others fairly and objectively. Interviewers need to understand if applicants are subjective or objective in dealing with others and in making decisions. The interviewer is trying to predict how the applicant will add value to the organisation and how they will interact with others. If the organisation values staff as assets, then it will seek future staff who are fair and treat colleagues with dignity and respect. However, other organisations may be more concerned about getting a job done rather than how the job gets done. The degree of fairness perceived in the applicant by the interviewer will help identify if the person fits the organisation’s culture and guiding philosophy. • Integrity — An interviewer may need to determine how ethically responsible a person is and how consistent they are in what they say and do. An organisation that seeks integrity in applicants may be highly regarded as a responsible corporate citizen. Existing staff may also regard their employer highly if integrity is an essential applicant hurdle that must be met. This will engender trust by current and new staff, as both ethical responsibility and social responsibility are highly regarded in contemporary society. Where integrity is proven in applicants, then once these people are employed this will signal to others in the organisation and to the community that the organisation values integrity and embeds this in its culture. An understanding of the systems that applicants belong to or have come from aids the interviewers in better understanding each applicant and how their human capital, traits and personality have been formed. In many instances these are formed by non-work aspects of life but they impact upon the work environment.

First Impressions

243

Strategic recruitment and selection means that non-work aspects of applicants and current staff need to be considered and the how relationship between work and non-work life recognised impact upon them. Strategy and systems approaches ensure that applicants and current staff are regarded holistically and not in isolation from each other. While Caproni (2005) outlines the elements of trust listed above as a part of the relationship between management and staff, the principles are very important to recruitment and selection. If there is to be an exchange of relevant information so that both the applicant and interviewer can make informed decisions about future employment, then trust must be established. However, in some instances applicants trust the organisation based on its reputation in the community and may seek confirmation that this trust is warranted during an interview and by feedback from the interviewer. In such cases applicants may believe that unskilled or uninterested interviewers are an aberration and that, once employed, they will find the reputation of the organisation held by the community is correct. This may well be the case but if it is not, then newly appointed staff may leave earlier than expected. The interview is where both parties meet for the first time and longer-term perceptions and relationships are forged. Both the interviewer(s) and applicants need to engage each other and actively participate in order to get the most out of this first meeting.

8.7.

Power

Power and control are usually connected and in the case of recruitment and selection the same is true. When an interviewer is appointed that person is given control over the organisation’s acquisition of future talent and human capital. Where the interviewer can appoint an applicant to a job, the person also has control over the organisation’s financial resources in terms of salaries, wages and benefits as well as investment in developing talent. The financial commitment made to an individual by the interviewer is ongoing as long as the new staff member is employed. If a new staff member is employed by an organisation over a period of ten years, then the interviewer has committed the organisation’s financial and other resources to the applicant for that period of time. The level of authority and responsibility given to an interviewer is significant and, as mentioned in earlier chapters, the cost of successful recruitment and selection may be many times the position’s annual gross salary. Because of this authority and responsibility the interviewer has control of real organisational resources and assets and as such the interviewer’s decisions need to be in line with the organisations strategic direction. The interviewer sits at the heart of the organisation’s ability to achieve a sustainable competitive advantage through talent acquisition and retention.

244

Bernard O’Meara

The interviewers need to fully understand the organisations strategic direction if they are to be successful in appointing staff who will help the organisation achieve its goals and objectives. However, as interviewers have control over resources and assets, this entails power or the ability to influence others. The control of resources makes interviewers business decision makers, not just functional staff. The application of organisational diagnostics mentioned in earlier chapters may place the interviewer or selector where they need to facilitate change in order to retain future staff and to optimise their potential and contribution (Robbins & Barnswell, 2006). In this case, the selectors may need to exert power to ensure change occurs within the organisation to create an environment that will be more supportive of newly appointed staff. The influence on others stems from the organisation’s desire and ability to achieve strategic imperatives and to reduce staff turnover costs. The organisational and hierarchical locus of power and control is central to successful interviews. While power and control are exerted outside and prior to the interview, their use forms the basis for decision making about applicant suitability. The interviewer is aware of the control he or she has over organisation’s resources and power may have been exerted to ensure the successful applicant is given the best possible positive environment in which to commence their employment. With this in mind, the interviewer should have a good grasp of how best to use this power and control — by appointing the best applicant. This ensures the most appropriate allocation of resources and fit. However, where the interviewer is the person who will make the final decision about applicant suitability, the exertion of power and control over applicants can be extremely counterproductive. The interviewer is making decisions on behalf of, and in the best interests of, the organisation. Interviewers need to ensure they have the best interests of the organisation and applicants at heart otherwise interviewers can make decisions based on what they think the organisation needs rather than making a decision on what consensus says it needs. The exertion of power and unnecessary control during the interview may not promote trust and a disconnect may occur between the interviewer and applicant. Mutual trust needs to be generated during an interview. Where the interviewer works in concert with a line manager to appoint necessary staff, any undue power or control needs to be identified and eliminated prior to the interview. Every effort should be made to ensure the interview is as effective as possible. Berscheid and Regan summarise the first few seconds of meeting a new person for the first time where power is perceived as relatively equal: In sum, if the first milliseconds of attention paid to another person reveal that the other is neither novel nor important, chances are no further attention will be awarded to that person unless social courtesy

First Impressions

245

or other external environmental forces demand it — in other words, that is that, in terms of relationship development. (2005, p. 166) In the first meeting between interviewer and applicant, each will mentally and unconsciously assess the other and determine how much effort will be put into the interview. This is why sometimes one interview flows smoothly while others may not flow at all.

8.8.

Indicative Behaviour

A holistic view of applicants considers both their work and non-work life. Often people develop personalities, beliefs and values throughout their lives and not just on the work side. The work/life balance approaches views the two components as complementary rather than exclusive. Research by Cazals, Almundever, and Fraccaroli (1995) investigated how young people awaiting employment coped with pressures. In some cases, people attempt to isolate disturbances in their lives, such as divorce or the birth of a child, from impacting upon other areas of their lives. In other instances, there was a change in priorities as people tackled these issues. They found that the degree of social support given was viewed by participants either in a positive manner or as an added pressure that threatened the participants’ psychological well-being. It was thought that social support would be viewed positively and would benefit those trying to cope with such disturbances; instead it could be viewed as both a threat and an asset. Thus, people cope with challenges in their lives in different ways and such coping mechanisms may be aired in interviews. Interviewers may need to know how applicants for higher level roles deal with pressure. This could be through playing sport or pursuing a hobby or engaging in any form of relaxation. For senior management roles where pressure may be constant, it may be important to know that an applicant can release the pressure somehow rather than bottle it up. Of course, there are situations when people do not cope. Work can cause stress through: • • • • • • • • •

Long working hours Working conditions Shift work Workload Risk or danger New technology Role ambiguity Levels of responsibility Work relationships

246

Bernard O’Meara

• Career development • Organisational culture and climate • Level of salary or wage Arnold et al. (2005) list the above points as examples of how different aspects of employment can impact the psychological well-being of employees. Interviewers can probe applicants to determine how effectively they have coped with work-related stress previously, as a guide to how they may deal with stress in the future. The list of causes of stress from the non-work related aspects of life are just as many and can include: • • • • •

Death of a family member Divorce or marriage breakdown Financial issues Family and other relationship issues Health problems

Stress can be caused by environmental, interpersonal and personal pressures from the workplace or from home life or any combination of these. Outcomes of stress may take the form of absenteeism, use of drugs or alcohol, breakdown of relationships, depression and even suicide. However, with the understanding that stress in the workplace will affect a person’s home life and vice versa, many organisations offer EAPs. A poll of 4000 people in Beijing by Fortune China in conjunction with Beijing EAPs Consulting in 2007 found (Unknown, 2007): • • • • •

73% of managers reported experiencing ‘obvious and extreme stress’ 55% reported decreased efficiency because of stress 47% reported poor sleeping patterns 16% reported ‘poor physical well-being’ 28% of managers have considered seeking psychological counselling

In India, Nair and Xavier (2012) reported on the success of an EAP at Larsen & Toubro (L&T) Knowledge City at Vadodara with the following outcomes: • 91.5% of participants (95) believed that counselling services should be introduced in every organisation • 93.7% believed that counselling helped staff deal with job and non-work issues • 86.3% would participate in the EAP scheme • 75.8% believed that the counselling service was as important as other facilities provided for employees In a survey by the American Psychological Association, 31% of respondents categorised themselves as suffering from high stress levels but never discuss it with their health care providers. If this is representative of the population, then it

First Impressions

247

suggests that there may be a greater number of people suffering from stress than reported (Davis, 2013). The growth and acceptance of EAPs illustrates the growth in stress and pressure upon people in the workforce. In efforts to attract and retain high-quality staff, employers are voluntarily engaging EAP services for their staff. In the interview it may become clear that a person has stress in their lives and strategic organisations that view staff as an asset will accept that stress is a part of contemporary life. These organisations will provide staff with multiple options to help their staff cope more effectively with stress and pressure. The interviewer can outline EAP services available in the organisation and their strict confidentiality during the interview. Such services may or may not be accessed by new staff, but the signal sent to the applicants is that the organisation values its staff and will help wherever possible. However, the research by Cazals et al. (1995) suggests that some may see the need for an EAP as a threat to their capacity to cope with stress and may react negatively in pressed too much. The presence of stress in an applicant’s life may be effectively dealt with via the use of an EAP, however, at one time or another, some new staff will need assistance. In an open and honest interview, the applicant may disclose the forms of stress in their lives and an outline of how they deal with stress, which will also indicate to the interviewer their general coping strategies which may transfer to the workplace. This involves trust, and if trust is not established during the interview, the applicant’s coping strategies in such circumstances may not be disclosed. In any event, such issues are generally best raised by the applicant and the interviewer needs to be sensitive and tactful but should not automatically stop an applicant from progressing to the next selection stage.

8.9.

The 80/20 Guide

Interviewers may use the 80/20 guide during their interviews. This refers to the ratio of time taken by interviewers and applicants in asking and responding to questions. In the recruitment interview the 80/20 guide is used. This means that the applicant should do approximately 80% of the talking and the interviewer does 20% of the talking. Compton, Morrissey, and Nankervis (2009) argue that the applicant is the one being assessed for suitability for the job and the more information the applicant gives the more the interviewer will be placed to make an informed decision about suitability. This is a guide but the intent is for the applicant to do most of the talking in response to questions posed by the interviewer. This is a guide only and not a hard and fast rule and may vary from interview to interview and be dependent on the work history of the applicant and the person’s engagement in the two-way discussion. Certainly the interviewer needs to respond to questions posed by applicants

248

Bernard O’Meara

and time should be allocated to outlining the job, the organisation and the rationale for the selection criteria. However, in the selection or subsequent interview, the ratio will change as applicants learn more about what is expected in the job and what opportunities for career growth exist in the organisation. Both the interviewer and applicant need to acquire the necessary information required for them to make an informed decision. In a highly competitive market for talent, especially VRIO-based talent, interviewers take more time to assure desired applicants that joining their organisation is the best option available to them. This changes the ratio as the interviewer now needs to market the organisation to the better applicants. Interviewers will want to discover if their better applicants have applied for other similar positions and what their level of interest is. This tends to equalise the perceived power shared by both parties. Applicants may well wish to reverse to 80/20 guide as they want the interviewer to explain the role in more detail to them and answer other questions they may have. An unskilled interviewer may find herself or himself doing 80% of the talking and in so doing, learn very little about the applicant.

8.10.

Eye Contact

Sociologists and psychologists argue that eye contact is important to social interaction as mutual eye contact is a signal that the communication channel between the two is open. Avoiding eye contact is a signal that one party does not wish to interact openly with the other (Berscheid & Regan, 2005). As noted in Chapter 4, eye contact and non-verbal cues play an important role in the interview. In a survey of 1000 senior managers in the United States, managers said that 10% of applicants made the mistake of not making and sustaining eye contact. Other issues included: • • • •

20% were unprepared to discuss skills and experience 14% were unprepared to discuss career plans 9% arrived late for the interview 9% showed limited enthusiasm

Adams (2011, p. 29) also noted that 38% of managers said that applicants had little or no knowledge of the organisations they were seeking employment at. This was considered the biggest issue for managers where applicants did not do their research at all, let alone thoroughly.

8.11.

Nervousness and Observable Behaviour

Most applicants are nervous when attending an interview. Interviewers need to establish a rapport with the applicant quickly and use this to move into deep probing of the applicant’s work history.

First Impressions

249

The interviewer is probing previous behaviour or attempting to predict future behaviour by questions and observation. The behaviour observed by the interviewer may appear to conflict with the responses verbally provided by the applicant. However, nervousness may not be the only the only reason to describe observable applicant behaviour. Medication may cause unusual behaviour and mental health conditions such as Autism, Aspergers and OCD may cause perceived unusual behaviour. A person with Aspergers syndrome may show little emotion or engagement, but may be quite suited to the job at hand. Also a person who has been unemployed for a considerable time may project an image during the interview because the situation dictates it. However, the applicant’s behaviour may change once she or he is employed. In response to questions asked, interviewers are likely to attribute the applicant’s work-based behaviour to personal traits or situational factors. Throughout the interview the interviewer will attempt to categorise behaviour and will re-categorise behaviour until the person believes that he or she has determined the reason for previous work-related behaviour. When observable behaviour appears to contradict verbal responses by the applicant, the interviewer must decide if the apparent inconsistency is relevant and important. The interviewer must rely on their training and experience to help them reach a conclusion (Gatewood & Feild, 2001). This involves judgement and, therefore, it can potentially bias the interviewer’s decision making. The use of ‘gut feel’ is similar to guessing and interviewers have dual responsibilities to both the organisation and the applicant. Huffcutt, Van Iddekinge, and Roth (2011, p. 356) state: Interview specific self-efficacy, interview specific motivation, and interview anxiety all have the potential to influence the degree to which interviewees can present themselves and their qualifications. There are a number of aspects including nervousness and anxiety that can inhibit the applicant’s capacity to effectively market themselves in an interview. Hopefully the more preparation an applicant does, the more confident she or he will be.

8.12.

Accents and Colour

‘The powerfulness of the applicant’s speech may be among the most important verbal factors influencing an interviewer’s judgments’ (Dipboye, 1992, p. 109). There is little doubt that the use of speech in important as it is the way in which people communicate effectively with each other. However, accent can also have a powerful effect on an interviewer. Dipboye (1992) also cited research that showed that a refined accent was evaluated more highly than a broad ‘unrefined accent’. Students were given a 20-second audiotaped applicant speech and were asked to evaluate the accent and dialect used. Where an

250

Bernard O’Meara

applicant used a broad unrefined accent during the interview, they were still rated more highly when they changed to a refined accent. More recent research in the United States by Hosoda and Stone-Romero (2010) attempted to determine the impact that foreign accents (French and Japanese) had on employment decisions compared to applicants with a standard American English accent. Their findings suggested that applicants with foreign accents were evaluated by the level of communication required by the job holder, irrespective of the level of the job in the organisation or understandability. It was found that Japanese applicants were evaluated less favourably for a low level job in an organisation that required a great deal of communication. However, they were more likely to be appointed to a low level job that required low levels of communication. It is possible that the interviewers were relying on their own opinion of understandability and job communication in trying to determine if the applicants could communicate effectively in the job and were understandable. The findings suggested that interviewers found some foreign accents to evoke more negative reactions for some jobs. There appeared to be a hierarchy of accents with European accents being evaluated more favourably than those with Asian accents. The researchers rightly point out that the findings need to be considered carefully and that suitability for a job was dependent on the level of communication required by the job. However, the research showed that accent can have an effect on decision making about job suitability. In order to reduce any bias, Hosoda and Stone-Romero (2010, p. 129) recommended as follows: • Use structured interviews as these have been found to be more job related, more valid and result in considerably less negative impact compared to unstructured interviews • The training of interviewers is also important and types of bias and discrimination should be included in the training. They suggest that interviewers with international experience and have experienced different cultures and therefore different accents may have a more positive view of accents • Interviewers should be given sufficient amounts of individuating information about applicants to reduce the effects of accent-related stereotypes. This helps focus the interviewer on the job characteristics and may help reduce bias The degree of an applicant’s accent is not known till the interview unless screened previously via telephone hurdle interviews. In any event, every time selectors and interviewers exclude a section of the community, they automatically reduce the size of the candidate and talent pool and this reduces the probability of selecting the right person for the job. In a global society, and with more people travelling abroad, more organisations are embracing diversity and are engaging in non-discriminatory selection practices to attract and retain the best possible applicants.

First Impressions

251

In a global society and with more people travelling abroad clients are also from an increasingly diverse range of cultures as are the users of services provided in retail, tourism, health services, education and other industry sectors. By excluding one or more groups of applicants, organisations are ignoring a part of their customer base and are engaging in discriminatory practices which damage their social reputation. Poor English expression in the re´sume´ may also mean that they are less likely to be interviewed. Research by Hosoda and Stone-Romero (2012) examined the Hispanic accents on employment decisions. Their results showed that those with a Mexican-Spanish accent were at a disadvantage compared to those with a standard American-English accent in respect to applications for a software engineering position (a high status role). Applicants with a Mexican-Spanish accent were considered less likely to be promoted to a management position and less competent than those with a standard American-English accent. This is despite the US Hispanic population accounting for 15% of the overall US population. This is consistent with their previous research which found that those applicants coming from the community majority were more highly evaluated than those coming from minority groups. Interviewers may undertake excellent preparation but still be affected by applicant characteristics in the interview. Sadly, similar research by Harrison and Thomas (2009) suggests that in the United States, preferential treatment for Whites does exist in America. The degree of skin colour was rated more highly than an applicant’s educational background and work history. Lighter and medium-coloured applicants were evaluated more highly than those with a darker skin tone. While this situation may be changing, skin tone and accent impact upon the employment decision, but are not considered until the interview, where the applicant and interviewer meet for the first time. Again, this is discriminatory and can significantly reduce an applicant pool and damage the reputation of an organisation in its community. Social and other forms of media along with people passing on their experiences to friends, family and colleagues will ensure such actions are highlighted and potential applicants alerted accordingly. In contemporary society such forms of discrimination are quickly identified as society holds organisations accountable for their actions and lack of social responsibility. Access to selection material by applicants via Freedom of Information legislation also helps ensure that minimum social standards are met.

8.13.

Negotiations

Bazerman, Mannix, Sondak, and Thompson (1990, p. 13) define negotiation as ‘… the process through which people who have conflicting interests jointly make decisions to resolve these conflicts’.

252

Bernard O’Meara

In the recruitment interview there will probably not be any opportunity for the applicant to outline any strong indications of salary or wage expectations, benefits or conditions. It is however common, especially for graduates, for them to volunteer information such as that the person has arranged to travel overseas shortly after the commencement period of the job. In these cases the interviewer will generally note these items but it will not dissuade the interviewer from pursuing the right applicant. However, the interviewer may give an overview of benefits and conditions but specifics will usually not be given at the selection interview. Those entering the workforce for the first time and graduates are usually at a disadvantage as they may not know what things are negotiable and which are not. Those entering graduate programmes or junior forms of employment will probably find that the wage or salary is set and that few aspects are negotiable. For those who have been in the workforce for some time, they will have a far better idea of their worth and know which items are negotiable and which are not. In such cases, senior staff may be offered a flexible salary package, dependent on the person’s circumstances. Younger applicants may seek a higher level of income at the expense of superannuation or retirement benefits. Older applicants may seek a lower salary but higher superannuation of retirement benefit contributions. Graduates and those entering the workforce for the first time will rely on the interviewer to guide them through this process at the conclusion of the selection interview when offers of employment are considered. The negotiating parties do not have equal knowledge. Prior to participating in a selection interview, applicants are advised to research the local and national job trends to determine the typical range of wages and salaries as well as benefits and other conditions offered. The research may show that employers in larger cities offer the better salaries than organisations based in regional locations. The research may also show that family-owned and medium-sized private organisations offer better salaries to attract candidates but offer less job security and career prospects. Hence, when initially discussing salary and wages it is better to speak of a range than a specific salary. This caters to city-based employers, regional-based employers, large and small organisations and those that are either public or private organisations. While organisations will negotiate on some variables, the interviewer may ask the applicant what her or his salary and benefits expectations are, to determine if there is a closeness of fit. If the applicant expectation is too far away from the organisation’s range, then this will be raised and clarified. It is best for applicants to have researched the salary range and types of benefits attached to similar jobs across an industry. However, throughout the interview the interviewer may believe the applicant has greater potential or human capital than other applicants and may, for this applicant, consider accommodating the applicant’s wishes.

First Impressions

253

Negotiation involves compromise and Petzall, Abbott, and Timo (2003) suggest that good negotiations are enhanced by mutual honesty, integrity and trust. Interviewers will help the desired applicant and will the interviewer can offer an applicant the job at a given salary, benefits and conditions it is up to the applicant to accept or attempt negotiation. Applicants do need to be aware of the reason for differences between salaries and benefits by different types or organisations and in different geographical locations. Accepting a job with a respected organisation that invests in staff may be better than accepting an offer with a higher salary package from a smaller organisation which cannot offer career development and opportunities. Applicants need to make up their minds with all relevant information available to them.

8.14.

Applicant’s Perspective

The applicant may enter an interview with certain expectations based on their research of the organisation and its reputation within its community. Applicant may have expectations about the job itself and how they could add value to themselves by being recognised for excellence in the job. Phillips and Dipboye (1989, p. 50) found that where applicants had a favourable pre-interview impression of the interviewer, applicants tended to be more positive in their evaluation of the job, the interviewer and the organisation. The research also highlighted that applicants tend to evaluate their interview performance as the interviewer would. This is also a self-fulfilling prophecy, as entering the interview in a positive frame of mind potentially led to a positive view of their performance in the interview. In this instance, the interviewer and applicant may undertake similar research into the job, the organisation and in the interviewer’s case, the applicant. Both form impressions before entering the interview and both evaluate each other’s performance and interpret each other’s verbal and non-verbal cues. However, the applicant will also judge their own performance with information not necessarily conveyed to the interviewer. As mentioned earlier, an applicant may not always present themselves effectively due to health, long-term unemployment or other issues. The person may know the reason why they did present effectively, but the interviewer may not. Post-interview evaluation by the applicant is just as important as post-interview evaluation by the interviewer. Each interview should be a learning experience that builds the applicant’s confidence and helps refine their responses to questions and their overall interview behaviour. The applicant should be confident that she or he passed on all relevant material necessary for the interviewer to make up his or her mind. However, the applicant also needs to be confident that she or he gained all the necessary relevant information necessary to make a decision to pursue the job or not.

254

Bernard O’Meara

Dipboye (1992) notes that the applicant’s interview performance has a greater effect than objective information when evaluating the applicant’s qualifications. This highlights the importance of interpersonal and communication skills of the applicant and their likeability. The research by Papadopoulou, Ineson, and Williams (1996) found that the likelihood of undergraduate and postgraduate students (n = 87) accepting a potential job offer was correlated with the interviewer’s ability to provide all necessary information to the applicant. The other factor that impacted upon accepting a job offer was the interviewer’s willingness to allow applicants the opportunity to present themselves effectively. While the interviewer is evaluating the applicant, the applicant is evaluating the interviewer. The interviewer is seen as a responsible officer of the organisation and may reflect the organisation’s culture and underlying philosophy. Both the applicant and the interviewer are trying to effectively market themselves and, in the case of the interviewer, the organisation as well.

8.15.

Interviewer’s Perspective

Clearly the interviewer also needs to ensure that he or she gained all the relevant information necessary to compare the applicant to other applicants and determine the applicant’s suitability for the job. Interviewers will evaluate the entire selection strategy each time it is used; however, special attention is paid to the interview. The interviewer may enter the interview with a pre-interview image of the applicant which forms the basis for expectations. The second and key area where further bias may be involved is the interview as this is where the two parties first meet and interact. At the end of the interview the interviewer needs to categorise the applicant as suitable, unsuitable or undecided. The interviewer needs to make an informed decision about the applicant’s suitability but needs to be as objective as possible. Hence, organisations may require two or more people to conduct the interview or request that it be audio recoded or extensive notes taken to justify any decision made and to make it defensible. The interviewer needs to answer the following questions: • Does he or she have sufficient information to determine the applicant’s suitability? • Is the person suitable for the job? • Does the interviewer understand the systems and sub-systems that have helped shape the applicant? • Has all relevant human capital been determined? • Does the applicant have potential for job growth and promotion? • Did the applicant have every opportunity to express themselves effectively?

First Impressions

255

• Are there any organisational diagnostic issues that need to be resolved within the organisation? • Did pre-interview images or expectations impede the success of the interview? These are some of the immediate questions that need to be answered by the interviewer following the interview. If the answer to any of the above is ‘no’ then the interviewer may not be able to make an informed decision or may not have allowed and encouraged the applicant to speak openly and honestly. Given that the interview helps the organisation reduce costs, achieve sustainable competitive advantage and source talent, the answer to all of the questions listed above should be ‘yes’. The interviewer needs to know and understand each applicant to make the most appropriate decision on behalf of the organisation.

8.16.

Summary

The purpose of this chapter was to explore the interaction between the interviewer and the applicant when they meet for the first time. There is a range of dynamics at work and both parties have objectives that they want to achieve. The importance of both parties preparing for the interview was reinforced. Research is cited showing why applicants are unsuccessful in interviews and why they are not offered jobs. As discussed in earlier chapters, applicants like all people have been shaped by their experiences in society, education, health, employment, personal life and each is an interactive system or sub-system and these needs to be fully appreciated by the interviewer. It tells them who the applicant is, where they have come from and where they are going The applicant also needs to know organisational and job antecedents to understand what the organisation requires and why. It provides an insight into its social system, its markets, its industry and how it interrelates with society. It was also pointed out that some very odd things happen in interviewers either by what is said or done by the two parties. While preparation is paramount, there are some things that only happen in the interview such as the evaluation of unstated selection criteria such as how will the person appear on television? Organisational antecedents may impact upon a job with an organisation where it is moving into a new market or it is peaking in a mature industry and these may affect the appointment of staff, particularly senior managers and the CEO. It was also discussed how the relationship between a CEO and the board and the chairman in particular is important but difficult to judge until the interview. These are things that need to be observed via personal interaction rather than via a re´sume´. First impressions are important as they create the base for further interaction and if first impressions are not good, then further interaction is unlikely. Once first impressions are created, people act in accordance with them and the expectations created are tested in future meetings.

Bernard O’Meara

256

The ways in which interviewers reduce bias were discussed via the use of panel interviews, having two interviewers, recording or videoing the interview and by taking notes and giving them to the applicant to peruse at the conclusion of the interview. A simple decision matrix was introduced as a means of focussing attention on the job and organisational requirements and away from applicant characteristics, however difficult this may be. However, research was cited indicating that people evaluate each other in the first few milliseconds of meeting and this can lead to unconscious bias. Thus, first impressions are made very quickly and are difficult to change once established. Pre-interview bias by either party was discussed as well as how it is human nature to categorise people when we meet them for the first time. During an interview the interviewer will categorise the applicants and re-categorise until the ‘correct’ category is found, even if this is inappropriate. The establishment of mutual trust was discussed as a major priority, as without it the parties may not speak openly or honestly to each other. The aspects of determining a person’s trustworthiness were outlined and explained as was the power relationship in the interview. Stressors and transferable coping strategies were discussed as these allow people cope with different types of stress in their lives and the use of EAPs was highlighted as a means of helping all staff deal with stress. At one time or another, stress affects everybody and organisations accept this and try to provide mechanisms for staff to deal with these. A number of examples were used to show just how much stress effects people in contemporary society. The 80/20 guide was introduced as a variable that interviewers refer to in the conduct of interviews. Eye contact was discussed in Chapter 4 and research was cited that 10% of applicants are excluded from job offers due to lack of eye contact. Other areas which become more noticeable in the interview such as applicant nervousness, observable behaviour, accents and skin colour were also discussed. It was pointed out that unskilled interviewers are more likely to pay attention to these than competent interviewers except where understandability is a job requirement. The negotiation that takes place between an interviewer and applicant in the final interview was explored as were both the applicant’s and interviewer’s perspectives of their interaction. Interview evaluation was touched on and will be covered in more detail in Chapters 11 and 12.

8.17. 1. 2. 3. 4.

Review Questions

Why are first impressions so important to the selection interview? How are expectations created by each party before the interview? Can interviewers reduce their personal bias? Why does organisational perspective affect the selection interview?

First Impressions

257

5. If people evaluate each other in a few milliseconds, how can trust be established in the interview? 6. How can people judge another’s trustworthiness? 7. Is the power between an interviewer and an applicant equal? 8. Why are stress reduction and coping strategies important? 9. Why is the 80/20 guide not a rule? 10. How important is eye contact? 11. How can bias regarding accents and skin colour be reduced or eliminated? 12. If graduates enter the workforce for the first time, how can they negotiate effectively? 13. What creates the applicants perspective of the interview? 14. What creates the interviewers perspective of the interview? 15. Why are salary and benefits not discussed in an initial interview?

8.18.

Learning Activities

1. Identify one or more people who have recently been employed. Ask them about their first impressions of the interviewer and organisation in their first interview. 2. Speak to employers and ask them how they establish trust in a typical interview? If they do not specifically seek to establish trust, ask them why? 3. Select a job that you would like to have with the organisation of your choice. How would you prepare to negotiate wages or salary, conditions and benefits?

PART III JOINING TOGETHER: WHEN NEW EMPLOYEES COMMENCE AT A NEW ORGANISATION

Chapter 9

A New Start Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Appreciate the need to properly introduce the new employee and the organisation to each other • Value the talent and potential new staff bring to an organisation • Determine how best to develop and engage new staff • Enhance the learning curve of new staff • Motivate new staff • Retain new staff for as long as possible

9.1.

Introduction

When a person joins an organisation, the person’s status changes. The person may have been unemployed and receiving social benefits and would have limited disposable income. Once employed, the person derives income, pays tax and, therefore, the person’s social status improves accordingly. A person engaged in full-time education may transit to an employed person with a future and the ability to achieve desired outcomes. In any event, newly employed people partly change the systems they are in. They may remain a part of the greater social structure but their form of contribution and role will change. However, joining a new or different organisation causes a great deal of stress as the individual’s social status and earning capacity change and usually improve. But new staff seek reassurances that they have made the right decision as their futures depend on it. Joining a new organisation is disconcerting as the incoming person may not know any other staff members except those who appointed her or him. The

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

262

Bernard O’Meara

organisation, its industry, culture, structure, strategy and talent bank may be mostly unknown. This is the time when the person gets to know the organisation and, like in any relationship, decides if she or he has made the right decision. Likewise, the organisation’s management and staff are getting to know the new appointee and are attempting to determine if the appointment was correct. Each party is getting to know the other and deciding on the appropriateness of long-term employment. The new staff member may be deciding if she or he made the correct decision to join the organisation but may also be concerned that she or he may not live up to the expectations of management. The relationship may be perceived as mutually fragile and in order for the parties to explore their relationship further and free from doubt one or both parties need to feel secure enough to let the relationship develop. In this respect, the organisation’s management has the capacity to reduce any unnecessary stress on the new staff member by planning the early stages of introduction carefully and sequentially. This ensures the new staff member is not swamped by the nature of the job, getting to know other staff members and learning about the organisation. The early transition of new staff ensures the following: • • • • • • • • • • •

Introduction to the job Introduction to the organisation Introduction to colleagues and key staff Eliminating any unnecessary stress Engaging the new staff member Motivating the new staff member Continuing socialisation Reducing any intention to leave Determining the new staff member’s place in the talent bank Evaluating talent development needs Maintain or enhance the person’s learning curve experience

The above points cement the link between the organisation and its new staff member and help the person find their place in the culture. The organisation can map out these activities as well as creating activities for the new employee to raise any issues or contribute in their own way in a reasonable time.

9.2.

Induction, Orientation and Onboarding

Mulders, Berends, and Romme (2010, p. 158) define staff induction as: … the process of familiarising new employees with whatever is necessary for them to feel at home and to understand and perform their duties effectively.

A New Start

263

The definition originally posited by St John (1980) is very broad but the intent is clear in helping the transition of applicants to becoming new staff. The researchers rightly point out that the induction commences before employment via intense socialisation discussed previously and continues once the person has been employed. The term employee onboarding is also used interchangeably. The pre-entry component commences once the applicant meets the basic job requirements and an evaluation of the person’s human capital has been made. All applicants are potential employees and each is provided with an overview of the job, the organisation and the benefits of joining the organisation. Induction commences once a candidate is confirmed as an applicant. As mentioned earlier, applicants can be engaged in intense socialisation throughout the appointment process, and this is a means for employers and applicants to meet as social equals. The signal sent to applicants is that the person is being shown the social and cultural part of management and the organisation as the applicant meets other selection criteria.

9.2.1.

Orientation

In terms of orientation, Mulders, Berends, and Romme (2010, p. 158) define orientation as: The aim of orientation is to help new comers cope with entry stress experienced upon entering an organization. Orientation refers to specific programs aimed at providing competence on a preliminary level in order to start working. In many cases authors and researchers do not distinguish between the two terms ‘induction’ and ‘orientation’. The orientation is job focused and its aim is to ensure new starters commence their job and become an effective contributor as quickly as possible. The orientation is a short-term activity which may involve other specialised staff who are not located in the new employee’s work area. An HR practitioner may conduct a part of this together with training and education staff and others who can provide the person with necessary information (Mulders et al., 2010). Acevedo and Yancey (2011, p. 350) argue that a successful orientation and job/ person fit ‘correlates with job satisfaction, organizational attraction, organizational commitment, and intent to remain with the organization’. The orientation provides the new employee with the knowledge to undertake the basic component of their job. Therefore, new staff are appraised regularly to determine what formal or on-the-job training they may require. The more the new staff member is able to do, the more relaxed that person should be as she or he can highlight their contribution and this should build their confidence. In the orientation a review of the person’s performance is focused on providing support to the person and providing them with learning and confidence-building

264

Bernard O’Meara

activities rather than purely viewing performance in respect to a trial period continuance or cessation. Hendricks and Louw-Potgieter (2012) argue that to engage and motivate new staff the orientation should take place within the first week of employment as this provides the greatest impact on the new staff member. While Wanous and Reichers (2000) argue that the orientation should start within the first month of employment, both sets of researchers argue that for the orientation to be successful it needs to be as close as practicable to when the employee commences. Following their research into 133 staff at a media company, Hendricks and Louw-Potgieter (2012, p. 7) believe that 3 4 hours each morning for the first week should be set aside for orientation activities. They also argue that the contents should include the following: • A welcome by senior staff and an introduction to the organisation’s history, mission, culture, structure and work standards. The inclusion of senior management into the orientation programme can signal that each member of the organisation is valued and contributes to the success of the organisation. This meeting removes barriers and emphasises the personal side of the organisation. When a CEO or other high ranking officer of the organisation takes time to meet a new employee, it is greatly appreciated by all those involved. It can also lead to a first name basis and a mutual recognition when the CEO encounters the person in the future. • Role clarification and how the job the person will undertake contributes to organisational goals — Each new employee needs to know why they are doing the job and what the expected outcomes are. They need to understand the link between their job and the achievement of organisational goals. Each new staff member needs to become familiar with the job tasks, the level of accuracy, excellence and standard expected. They need to know what they are expected to do and how to do the job. In most instances, jobs will require the use of technology or tools and new staff need to understand these and be able to use them effectively. The new staff member even needs to know very basic things, such as where stationery is kept, passwords for photocopiers, how to obtain keys to open doors and even where her or his work station is located. Knowledge needs to be built up over time and in a planned sequence so the new staff member can process information and remember it. A full day or week may overwhelm them as they try to remember where the toilets are and who the CEO is. They must gather a lot of information and most orientations consider this carefully, hence, the concept of splitting the orientation over several days. New staff may be required to work in teams or may be required to frequently interact with other staff and new staff need to know what other staff do and how they interact. A very organic organisation with little structure or formality may confuse new staff as they seek formality, structure and guidance in the initial stages of

A New Start

265

employment. New staff should not get to the point where they ask; what am I supposed to do? • Outline of health and safety practices and policies — In a responsible organisation health and safety issues are a priority and new staff need to be aware of all health and safety policies and procedures. A new accountant asked to speak to the manufacturing manager may be unaware that she or he is supposed to wear hearing protection when entering the production facilities where noise levels are extremely high. An administration officer, usually located in the administration office, may not be aware that he or she is supposed to wear a mask over his or her mouth and nose when in the production area as asbestos is used to make the organisation’s products. Each worksite may have different health and safety requirements and new staff are most vulnerable when they leave the area they work in and go to another part of the organisation which has different health and safety practices. Strategic organisations will invest in their staff, keep them safe and will generally exceed minimum legislative requirements. Health and safety legislation provides the minimum requirements to be met by organisations, but strategic organisations can demonstrate to their employees that higher standards are employed and these benefit staff. • Coverage of the organisation’s IT policy and practices — This field is not unique to the IT industry. Indeed organisations may provide staff with notebook computers, tablets, pagers and phones. New staff need to know how to use these effectively and what their responsibilities are with respect to such equipment. Most organisations require staff not to use them for personal use and in the case of computers, their usage can be monitored. Whalen and Gates (2010, p. 15) define monitoring as: processes and procedures for investigating employees and watching their ongoing actions, designed to ensure that both the safety of employees and the needs of the employer are being met. A computer use policy (CUP) is generally constructed by management in the organisation and sets out who are allowed to use these facilities and how they are to be used (Foltz, Schwager, & Anderson, 2008). However, Foltz et al. (2008) suggest that such policies may not be read at all. Their research found that attitude, apathy and social trust influenced the decision to read the policy or not. Those with a positive opinion of these policies would read them but others who are not positive in their attitude or who are apathetic will not. In a computer literate society, it may be expected that giving new staff CD-ROMS with organisational policies and guidelines would encourage staff to read them. But this is clearly not the case. If it is seen as important to management and the job, staff will read them, but if perceived importance is low, then chances are that such documents will not be

266

Bernard O’Meara

read at all. New staff place importance on issues perceived as important to the organisation and will address these first. However, this may be a perilous activity, especially if there are consequences to not following procedures and policy. This is especially the case where employers engage in audits of usage with penalties attached to those who have not adhered to the CUP. While those employed in the IT field, or for those who must use different forms of computer-based technology daily, might find audits and monitoring intrusive and may even feel their privacy has not been respected, others will feel protected against accusations of misusing an organisation’s technology. • Meeting other staff members who will interact with the person and possibly influence their job performance. This is a sensible form of enhanced communication and socialisation that forges a relationship between the new employee and key stakeholders with whom the person will interact. While socialisation will be dealt with later in this chapter, it is important for the new staff member to know those he or she will frequently interact with as well as other staff who will be affected by the person in an indirect way. This ensures a holistic understanding of the scope of the job and how it impacts upon other jobs and staff, and how, in turn, these impact the job of the new staff member. This can establish the foundations for a stronger relationship with other key staff. • Lunch with senior staff — While this is another form of socialisation, it signals to the new recruit that he or she is welcome. It also signals to the person the feeling of being embraced by a ‘corporate family’. These activities can continue to develop trust between the new employee and management and/or other staff and help build confidence that the person has made the correct decision to join the organisation. Informal lunches with senior staff can also eliminate mental images that management is separate to the rest of the workforce. It can encourage new staff to ask questions more and seek opinions from management which, without such informal activities, the new staff may not do. A new staff member eating lunch with senior staff would listen to conversations that she or he would normally have with his or her colleagues and friends. It demystifies management as aloof and presents them as well with similar ideas, values and interests. Senior staff are people too. • Provide the person with contact details and other information required — When a new employee joins any organisation everything about it is unknown. Hendricks and Louw-Potgieter (2012) argue that all paperwork needing to be completed and details of the orientation programme, hierarchy and the names and contact details of key staff can be given to the new staff member before they commence work. In this way they will know what to expect and who they will encounter. This should clarify aspects of their immediate future but gives smaller amounts of information to applicants so it is manageable and it gives them something to refer to.

A New Start

267

The new staff members can come to the orientation better prepared mentally, and they can prepare to ask any questions they may have when they meet the right people. This gives a sense of inclusion before the person commences employment and creates a positive overview of joining the organisation. It is not unusual for organisations to send such information and locality maps to new employees. These usually include when to meet, who to meet and where to meet and the anticipated time the person can spend on different activities and with different people. This is a guide only and may change if necessary and back up activities can be planned if a person supposed to introduce himself or herself to the new staff member is called away. New staff can cope with change where necessary but if the flow of the orientation remains smooth, then no anxiety will arise from it. • If possible provide the person with CD-ROMS which explain company policies, procedures, ethics, grievance procedures, hierarchy, company strategy and goals. Hendricks and Louw-Potgieter (2012) also argue that people can learn twice as fast through self-guided e-learning and by providing new staff with information on CD-ROMS; these can be accessed anywhere and anytime. This also illustrates that the organisation can provide knowledge in easily accessible contemporary formats. The CD-ROMS can be referred to at work or at home and are, therefore, a very convenient means of providing information. Alternatively, such material can be placed on an organisation’s website and password protected if need be. This ensures the material can be accessed anywhere that new staff have access to a computer. The material can be easily updated to ensure that up-to-date information is always available to staff when they need it. The material should include the date it was uploaded or placed on CD-ROMS and should also list the names of staff who can answer any questions that may arise. • Appoint a mentor to guide the person — Arnold et al. (2005) define mentoring as the pairing of an experienced mentor with a less experienced colleague to offer career advice, support and assistance in the development of new skills. A mentor can be a colleague in the same organisation as the new employee, or can be a member of a professional body such as a Human Resource Management Institute or society or a professional engineering organisation. A new staff member may have several mentors inside and external to the organisation. Fischbach (2008) believes that a mentor needs to be patient, knowledgeable, easily accessible, well organised and committed. She argues that for a new employee everything is new and as such he or she may have a lengthy list of questions to ask. Where possible the mentor and mentee can meet in a quiet and relaxed atmosphere where questions requiring time to be explained can be addressed in an appropriate environment. Also, new staff may be a little embarrassed by asking what they may consider to be mundane questions. Asking a mentor to refresh their memories may also cause new staff a degree of anxiety as they may think it reflects poorly on them. Simple questions can be answered on the spot, but the mentor needs to be cognisant of the mentee’s confidence or lack of it.

268

Bernard O’Meara

The mentor needs to be knowledgeable and have several years’ experience so that the range of mentee questions can be answered. However, the mentor may deem it more appropriate to provide the mentee with the tools to discover answers from other sources such as other colleagues, websites and job or organisation material. The latter can include a brief overview of the names and contact details of other staff, as well as an insight into the jobs they hold and how they can interact with the mentee’s job and responsibilities. This allows mentees to begin accessing the knowledge of a broader range of staff and builds their confidence in themselves. This also broadens the mentee’s social experiences across the organisation as the mentee builds up his or her own list of internal contacts. In order to be of greater assistance to new staff, the mentor needs to be easily accessible. Often new staff need information quickly to be effective in their role and as such they need frequent interaction with the mentor. This is generally achieved by having the mentor work in the same area or location as the mentee. The management of the organisation need to understand that the mentor will need to spend time coaching the mentee, especially in the first few months of joining the organisation. As the mentee acquires new knowledge he or she will refer gradually less frequently to the mentor. However, the mentor needs to assist the mentee perhaps in more informal ways during this period as well. At some point the mentee will start to things by himself or herself. The mentor still needs to ensure that the mentee is productive in terms of the quality and quantity of output and that the mentee understands what he or she is doing and why. The mentor will take a less active role in the mentee’s development over time but stills needs to ensure that the mentee is achieving both job and organisational expectations. When the mentor is not available, another experienced person needs to be able to respond to the needs of the mentee. This person needs to be involved in the orientation and the mentoring process, but to a lesser degree. Mentors will need to give their mentees a list of contact methods such as telephone, email or mobile/cell phone. In this way the mentor can still be accessed if necessary when the mentee requires assistance. Mentors need to be well organised. Although organisations should include mentoring as part of the person’s role, they still have their own job to do. This means that the mentor needs to carefully match his or her routine to that of the mentee and provide sufficient time for interaction. The mentor should also plan sequenced activities for the new staff member to complete. The mentor needs to be able to explain what is required, how to go about it and what the expectations and outcomes are. This requires planning by the mentor and each activity needs to be related to the development of the mentee. The activities need to be sequenced commencing with very straight forward activities and building up to more challenging activities.

A New Start

269

The mentee will need to understand why he or she is undertaking a task so they appreciate that each is a learning experience. As such, mentors should have a basic understanding of adult and adolescent learning styles in order to match learning experiences accordingly. The mentor also needs to be committed in order to have a major influence on the career of a new staff member. The mentors need to be trained so they know what to do in order to best help the mentees. The commitment is to the role and purpose of mentoring, to the career, job and organisational development of the mentee and to aid the organisation in developing its talent bank and human capital. Mentoring is a major undertaking that requires thought and reflection. It requires the mentor to have sound judgement, interpersonal and communication competencies. The mentor needs to use a number of executive competencies in order to achieve desired outcomes. Organisations need to appoint mentors based on their corporate and job knowledge as well as a broad range of characteristics that draw out the talent in new staff and commence the development stage accordingly. Mentors will work in concert with a range of other professionals such as talent development management, line managers and other functional staff located in human resource and training and development departments where these exist. • Populate social networking tool — Hendricks and Louw-Potgieter (2012) suggest that the orientation programme should foster social networks between new staff and existing staff. They argue that by using social networking software new staff can create profiles of their personal and professional lives and share these with existing staff who would already have such profiles created. Where new employees link with other staff via social media they may find they have common interests and hobbies. This may encourage more effective collaboration at work and even non-work related social friendships. The construction of new friendships and feeling part of an embracing ‘work family’ helps new staff settle into their jobs and the organisation far more easily. New staff can form both formal and informal friendships and relationships and perceive that they are welcome, recognised and valued. • Provide regular follow-up meetings — Follow-up meetings between the new employee and his or her mentor and supervisor should be incorporated into the orientation programme and beyond. These allow the new employee to raise any outstanding issues or questions not previously addressed. They also allow the mentor and supervisor to determine if the person is making progress or if there are political, communication, cultural or other barriers that need to be dealt with. Different organisational aspects may inhibit professional growth and development of new staff, and once identified need to be removed as quickly as possible. The first year of a new job can create anxiety and stress for new staff but these can be reduced by the mentor and supervisor and such actions are appreciated.

270

Bernard O’Meara

Hendricks and Louw-Potgieter (2012) suggest that follow-up meeting can be made around milestones achieved by new staff. They also suggest that these meetings be informal and held in a social setting. The new employee can receive feedback about performance and options that may arise as the person gains more experience and knowledge. The mentor and supervisor can gain feedback that allows them to better target the needs of each individual and also help improve the orientation experience for other new staff. • Orientation content — The content of the orientation programme will vary from organisation to organisation and from job to job. There will be material that will be of use to all employees such as when salaries are paid into bank accounts; annual, sick and long service leave arrangements; commencement and finishing times, meal and other break times; car parking, the use of company property; security arrangements; workstation location, health and safety procedures and the like. • Other information will only be relevant to those in particular departments or sections of an organisation. Sales and marketing staff may have access to company vehicles; be provided with company credit cards; be reimbursed for use of home telephone use for business purposes and be provided with other benefits required by the nature of the job. • As part of the orientation, new staff may sit in on general information sessions or in formal classroom type activities where these are deemed appropriate. Organisations may require new staff to view safety or health videos or complete documents required for security and identification purposes. • However, the orientation needs to provide new staff with relevant and necessary information and learning opportunities they will need. The orientation will not answer all the questions of new staff, but it should provide them with the means to ask the right question or the right person. • Orientation duration — The duration of the orientation will also vary depending on the job, the organisation, the previous experience and knowledge of new staff and their learning capacity. Hendricks and Louw-Potgieter (2012) suggest that the orientation should occur within the first week of employment but 3 4 hours, spread over each day. However, other researchers believe it should occur within the first month of employment. • Still other organisations may conduct the orientation for a week in each of the first 6 12 months of a new staff member joining the organisation. The reason for this variance can be attributed to the complexity of the organisation, its size and diversity. • A global organisation may have common components for parts of all orientation programmes, but have other quite distinct and unique components depending on its geographic location and the countries in which it operates. • The other reason for the disparity of orientation programme duration is due to the organisation’s view of how much information new staff can manage. One view suggests that orientation occur early after the new employee commences.

A New Start

271

• However, another argument is that at times new staff do not know what information they need until much later into their employment period. In this view, information is provided to new staff over a longer timeframe when the information will be better understood and processed. • Six months after a person starts he or she may well have forgotten what was covered in the first week of employment and have to seek out answers again. Hence, the need for staff to have quick and easy access to corporate websites where information can be gained as necessary and referred to as required. These replace orientation booklets that many organisations have used previously. • Track the progress of the person’s integration into the organisation — Hendricks and Louw-Potgieter (2012) attempted to create an ideal programme with staff retention and organisational identity as its key goals. The overall induction process can dramatically impact upon a person’s intention to commit to the job and the organisation or to leave the organisation. According to Derven (2008), induction reinforces a new employee’s decision to join the organisation and fosters a feeling of belonging. A well-organised induction programme will aid staff in dealing with anxiety by providing them with coping strategies like goal setting and planning during one of the most stressful times in their organisational life. By reducing insecurity and anxiety, induction programmes are able to help employees settle in faster and feel more at home in the organisation. (Hendricks & Louw-Potgieter, 2012, p. 2) Ultimately the new staff need to know: • • • •

What the organisation’s expectations of them are What their work routines, job activities and responsibilities are How they contribute to the organisation’s strategic goals Who the people are who can help them perform their jobs effectively.

If the orientation can achieve these desired outcomes, then it has been successful. It is also effective if it has provided the new employee with confidence in their own abilities and their decision to join the organisation. Another common approach is to provide new staff with a checklist of things that need to be completed during the orientation programme. It is also common for management to have a list of outcomes to be completed by new staff members. While the outcomes are designed to challenge the individual and to see how the person reacts and what she or he achieves, these can go on well beyond the initial orientation phase. A new staff member’s learning curve commences to ascend once he or she commences. However, they will continue to learn for a year or more and organisations need to establish where new staff are in respect to their learning curve and if their learning experiences can be improved. The learning curve is important as it provides new staff members with greater confidence in their own abilities.

272

Bernard O’Meara

The orientation does, in part, familiarise the person with the job and the organisation but it can also help motivate new staff and assist in their retention. Each component of the orientation has a purpose and is integrated. The orientation also complements the balance of the induction process — the socialisation of new staff.

9.3.

The Second Part of the Induction Programme — Socialisation of New Staff

The second part of the induction programme is the socialisation of new staff. Orientation helps a person to cope with the job and to understand the organisation in which they find themselves employed. Socialisation is the process of how new staff ‘fit into’ the organisation and establish new relationships with colleagues. Korte and Lin (2013, p. 408) define social capital as ‘including concepts such as trust, relationships, networks, and other resources embedded in groups’. The definition has three components. The cognitive dimension focuses on the value of shared language, meaning and narratives for group performance. The structural component focused on the impersonal network configuration, emphasising the various benefits afforded by different positions in a network. The relational dimension includes the social characteristics of trust, norms, obligations and identification with the group. Organisational socialisation is typically understood as the process by which organisations help newcomers learn about their work and adjust to the workplace. However, the social dynamics as mutually constructed relations between new and existing staff is important as it determines how new staff ‘fit in’. From a systems perspective, there is a social system in place in an organisation before new staff commence. Thus, new staff need to learn the rules of this new social system in order to accommodate it and fit in. In a very large organisation, there may be different levels of social systems and culture and fitting in provides new staff with psychological safety and identity. The degree of integration of new staff into the organisation’s social system depends on the effort of the newcomer to establish interpersonal relationships with other staff. New staff form individual relationships in organisations but often a section or department or team environment mean that new staff also have to accommodate team or group socialisation. New staff will become aware of knowledge flowing into and out of the group and need to understand the value and importance of such information and their role in accessing and utilising that information. If other group or team members provide or receive such information, new staff will be expected to do so as well. This means establishing individual and collective relationships and participating in appropriate activities and understanding how others view and value information and relationships. New staff need to become a part of existing social structures to be effective in their roles. Korte and Lin (2013) found that an experienced and respective mentor can increase the socialisation of new staff as the mentor will most likely be a part of existing social structures and can introduce new staff to these.

A New Start

273

They found that relationships were formed or not formed due to differences or similarities in age, personality, status, workload, interdependencies of the work and culture. They cite instances where young single new employees found it more difficult to relate to older, married staff with children. Positive outcomes were generally achieved when new staff learnt how to fit in and actively engaged in building new relationships. In their research, Korte and Lin (2013) found that newcomers were socialised into work groups rather than the organisation as a whole. It was through relationships that new staff gained access to social structures and developed a shared understanding of workplace culture. However, those not fully engaged or able to build relationships and enter social structure may find the experience negative, and cause them to consider if they made the right decision by joining the organisation. Research by Ponte and Rizzi (2010) outlined different socialisation practices, including institutionalised and individualised socialisation. Institutionalised socialisation refers to structured and formalised socialisation practices while individualised socialisation refers to an absence of any planned socialisation practices. Institutionalised socialisation usually occurs in strategic organisations that provide intense socialisation during the selection process and continues this once the successful applicant joins the organisation. At this point, the newcomer will be given socialisation opportunities most likely facilitated by a mentor. An attempt is made to aid new staff integrate into corporate social structures as well as local social structures where the new employee is located. However, the emphasis is not solely on the new staff member to establish relationships; instead, the organisation provides opportunities for social engagement and the construct of longer-term relationships. However, individualised socialisation generally reflects an organisation with a focus on the job, and therefore the orientation programme, rather than creating socialisation opportunities for new staff. In this case, the new staff member or supportive existing staff will take the lead and help the new employee to socialise. If there are few or no supportive staff willing to help socialise new staff, then the person may feel isolated and an outcast from the organisation’s social structure, increasing the risk of the person leaving the organisation. In many organisations, socialisation of new staff is a renewal process that brings fresh talent and human capital to an organisation, making new staff a valuable commodity and this may be appreciated by an organisation with a dynamic culture and environment. Alternatively, socialisation can be used to simply reinforce the existing culture and minimise the risk of change. Prior to employment management and staff need to determine if renewal is to be embraced or if status quo is required. Strategic organisations value diversity and welcome those who may challenge existing culture, and will guide the newcomer through organisation and job-related socialisation and let the person decide which relationships to build and which social structures to engage in. Sprogue and Elkjaer (2010) argue that often organisations become accustomed to practices and take them for granted and that over time idiosyncrasies are developed and become embedded in culture. They present two case studies that

274

Bernard O’Meara … may be said to represent two different ways of inducting newcomers but with the same background, namely to induct new kinds of newcomers out of necessity due to labor shortages, either because of rapid growth or because of the need to rethink the company profile. (Sprogue & Elkjaer, 2010, p. 137)

Hence, the appointment of new staff provides an opportunity for renewal and socialisation provides newcomers with a social structure in which to engage and perhaps stimulate discussion about how things are done and why. New staff may bring new ideas for doing things, or see other opportunities, and to air these they engage the appropriate social structure to raise alternatives. The socialisation process planned by a strategic organisation may allow for renewal and aid new staff to establish new relationships faster. Of course, change will occur over time and new staff need to learn about their job and the organisation before proffering advice, even if they are experienced in a similar job but new to the organisation. However, selectors need to know, prior to seeking new staff, how they will be expected to engage in socialisation practices and access social structure. The role needs to be determined in advance so that there is synergy between selection and the induction and socialisation. Antonacopoulou and Gu¨ttel (2010, p. 40) agree that newcomers ‘learn role behaviour, group norms, and, more generally, orientation, as well as work skills’. However, they argue that socialisation and integration occurs within a much broader framework such as transferring and securing organisation knowledge, memory and routine. In this sense, socialisation becomes a means of enshrining the nature of the organisation and its intangible assets in a form that is passed on from one generation of employee to another. Along the way, parts may be deleted and new parts created and the renewed organisation will continue and continually provide newcomers a means of discovering its essence through socialisation practices. There is a transfer of knowledge from existing staff to new staff and the acquisition of knowledge by newcomers increases their human capital as they better appreciate how things are done, why things are done and what knowledge is valued and needed to be retained (Minbaeva & Michailova, 2004).

9.4.

Engagement

Engagement is a term that at times can be difficult to explain let alone measure. Engagement can be viewed from a psychological perspective as engagement is a choice that staff make. They decide to be engaged or not to be engaged. Saks (2006) undertook some excellent research and was able to successfully argue that engagement is not to be confused with other constructs such as organisational commitment and job involvement. Organisational commitment differs from engagement in that it is a person’s attitude while the focus of engagement is ‘one’s formal role performance rather than

A New Start

275

extra-role and voluntary behaviour.’ Engagement also differs from job involvement … and is tied to one’s self-image (Saks, 2006, p. 602). The research attempted to view staff engagement from the perspective of Social Exchange Theory (SET) which attempts to explain how relationships evolve over time. These evolve into trusting, loyal and mutual commitments where each party provides something to exchange. When an organisation provides employees with economic security and adds value to their human capital, then employees feel obligated to ‘repay’ the organisation via increased contribution. The organisation provides resources and employees increase their level of performance as a consequence. Thus, SET can be used to explore the relationship between what causes engagement and what the possible outcomes of engagement are. In this sense, engagement can be viewed as dependent on the level of resources provided by the organisation that stimulate staff to respond positively. Saks (2006, p. 602) defines engagement as: …a distinct and unique construct that consists of cognitive, emotional, and behavioural components that are associated with individual role performance. Furthermore, engagement is distinguishable from several related constructs, most notably organizational commitment, organizational citizenship behaviour, and job involvement. Depending on the perceived value of resources provided to employees by the organisation, staff will respond with varying degrees of engagement. Thus, the antecedents are important as they mediate the relationship between the antecedents and outcomes or consequences. When the organisation fails to provide these resources, individuals are more likely to withdraw and disengage themselves from their roles. Thus, the amount of cognitive, emotional, and physical resources that an individual is prepared to devote to the performance of one’s work roles is contingent on the economic and socioemotional resources received from the organisation. (Saks, 2006, p. 603) Saks (2006) used the following antecedents to test hypotheses about the amount of impact they had on engagement. The research drew upon other models that helped narrow down the list of antecedents to a manageable grouping.

9.4.1.

Job Characteristics

Saks (2006) argues that job characteristics can provide job holders with meaningfulness via task characteristics, challenging and personally rewarding work. These tasks require the job holder to use a range of competencies, personal discretion, provide autonomy.

276

Bernard O’Meara

Where work allows job holders to expand their knowledge and challenge their work capacities, such job characteristics will be more highly valued than those that are monotonous and routine and require little challenge. Job characteristics can create a psychological appreciation by job holders or the opposite where it is considered appropriate. 9.4.2.

Rewards and Recognition

The nature and characteristics of the job and its importance determine the level of rewards received by the job holder as well as the degree of recognition a person perceives they attract through the job. The better an employee believes they are being rewarded and recognised the greater effort the employee will expend. It is generally held that the greater rewards and levels of recognition a job holder receives, higher the levels of performance are likely to be. While rewards and recognition can be personally gratifying and economically necessary, they also determine a person’s social status and amount of disposable income. These, in turn, determine a person’s social status in the community and are therefore doubly important. Internally, the nature of the job and the appropriate rewards and levels of recognition are also tied to the importance of the job to the organisation and locate it within its hierarchy. These also allow the job holder to compare his or her rewards to the perceived rewards and recognition of others at the same level in the organisation. 9.4.3.

Procedural Justice

Procedural justice refers to the perceived fairness of the means and processes used to determine the amount of rewards and benefits to be distributed. Organisational transparency can lead staff to have greater confidence in the processes used and therefore in the management and supervision of the organisation, their ethics and commitment to staff. Procedural justice can ensure that equity is not just perceived as fair but the processes used are fair, defensible and consistent. If equity is not perceived as fair, the processes can be independently evaluated to assure staff that the procedures are fair and consistent. 9.4.4.

Distributive Justice

Distributive justice refers to the predictable and consistent distribution of rewards throughout an organisation. Each employee may have a different perception of distributive justice and the subjective perception may affect engagement. Because perception is a personal view, an organisation may be justly distributive but perceptions of this may be different.

A New Start

277

Where the level of distributive justice in an organisation is considered high, employees are likely to feel obliged to be fair and equitable in their job performance. However, if distributive justice is not considered to be fair, employees may reduce their level of contribution and engagement to compensate accordingly. Interestingly, Saks (2006) refers to research which shows that a perceived lack of fairness and equity can exacerbate burnout in staff. In terms of engagement, burnout and a lack of motivation can dramatically affect the performance of staff and their mental and physical well-being. Distributive justice can at times be difficult to appreciate, as staff rarely have a complete understanding of the ways in which resources are determined and distributed accordingly. Where perception is disconnected from reality, management may feel they have to defend their practices and an element of mistrust creep into the relationship.

9.4.5.

Perceived Organisational and Supervisor Support

Kahn (1990) addressed three different but equally important psychological conditions that influenced staff in the workplace. He viewed psychological meaningfulness as the feeling that staff are receiving a return on their investment in themselves via the use of physical, cognitive, or emotional energy. Staff need to feel valued, worthwhile and useful. They need to feel that they are making a difference, effectively contributing and being recognised rather than being taken for granted. They need to feel like they are being treated with dignity and respect. Thus, the amount of perceived organisational and supervisory support is seen as recognition of their worth. The more staff feel valued and supported the more engaged they are likely to be. Saks (2006) notes that a lack of organisational and supervisory support has been found to be consistently related to burnout. Thus, the impact is significant. Kahn (1990) also addressed the issue of psychological safety. He argued that this was achieved when staff felt able to show and employ one’s self without fear of negative consequences to self-image, status or career. When a mutually beneficial relationship is established between staff and their supervisors and the greater organisation they feel ‘safe’ enough to seek or accept support. This is directly related to improved job satisfaction, organisational commitment and performance. The relationship between staff and the organisation is complex and involves different organisational sub-systems such as support, engagement and investment in human capital and talent. The foundation for a mutually beneficial relationship commences with strategic recruitment and selection, continues to develop in the first few weeks or months. Once the foundation is established, it can be developed further and over the duration of the staff member’s tenure Kahn (1992).

278

Bernard O’Meara

The third psychological condition that was addressed by Kahn (1990) was psychological availability. Psychological availability is the sense of having the physical, emotional or psychological resources to personally engage. Staff are at their most vulnerable when they first join the organisation. This is when they decide to stay with, or leave the organisation. It is also when they cement the psychological contract and construct the foundations for establishing and developing relationships. New staff need to feel valued, be able to express themselves and commit to the job and the organisation. If engagement does not occur and new staff are not motivated, they will doubt their decision to join the organisation. The consequences of positive employee engagement can include greater job satisfaction, organisational commitment and better organisational citizenship behaviour. However, each person is an individual and has different perceptions, needs and aspirations. Engagement may need to be tailored to meet different individual needs. Saks’ (2006) research established that job and organisational engagement are different but related constructs and his research participants scored higher on job engagement rather than organisational engagement. Different antecedents lead to different degrees of job or organisational engagement and different outcomes. Organisation diagnostics will require that aspects such as engagement and its different outcomes are considered and improved wherever possible prior to employment. If staff leave within the first 6 12 months of joining an organisation, this clearly needs to be investigated. To maintain peak performance, a racing car needs to be driven regularly and organisation diagnostics need to be frequently implemented in order to ensure optimum outcomes for staff and the organisation. Involvement, commitment, motivation and engagement are the desirable products of a carefully constructed induction and socialisation. These in turn, lead to greater levels of staff retention. The aspects of motivation discussed in earlier chapters need to be incorporated into the induction programme to reinforce the successful applicant’s level of confidence. The induction experience needs to be a positive, constructive and informative experience for new staff. These can be monitored by talent acquisition and management staff so that positive interventions can occur when the level of motivation, engagement and commitment plateau. Thus, when evaluating the outcomes of induction the levels of involvement, commitment, motivation and engagement will indicate the success of the programme as well as assisting in identifying areas for improvement. These outcomes need to occur and be positive if the organisation wishes to retain critical new staff. However, it was noted earlier that applicants will apply for several different positions simultaneously and even before a job offer is made, likely applicants need to be motivated, engaged and committed to ensure they reject job offers from other organisations. Hence, the early and intense socialisation and engagement of applicants is necessary. This can be achieved by social contact, regular communication and providing applicants with a copy of the induction programme the successful person will .

A New Start

279

undertake. During this period applicants can be introduced to key staff they will be working with and views sought from applicants on current projects being undertaken or issues being addressed. Where an applicant does not have regular communication with the organisations and its staff, doubts can creep into their thinking and they may seek alternative employment. Gaining the right human capital and talent is a constant and ongoing process so potential new staff need to feel valued by the organisation and their future colleagues. The integration of these concepts prior to a job offer being made can lead to the successful employment of the right person who is committed, engaged and motivated. The reverse is also true. This is especially the case where the time between a job offer being made and the actual commencement date in the job, is unnecessarily long. It cannot be assumed that once a job offer is made that the applicant will actually join the organisation. Other employers may make similar offers and strategically oriented organisations will commence internal socialisation and involvement processes and continue these till the applicant actually does start work. The internal socialisation processes may be offered to applicants by multiple organisations and applicants will join the one where they feel valued and where their career can be positively shaped. In the competition for talent organisations must construct their motivation and engagement strategies before they communicate that a job vacancy exists. Internal integration is important and all staff involved in the induction should be involved. Some of the things that can negate initial motivation include: • Staff at reception or other areas not knowing that a person is commencing employment. When a new staff member commences work he needs to feel valued and meeting staff, on the first day, who do not know he or she is commencing gives the applicant a poor first impression. • Also when the person commences work, he or she finds their supervisor and/or mentor are too busy to spend time with her or him. In this case, the person does not know what to do or who to talk too and may feel the organisation is not very well organised at all. Again, the first impression is not very good in this case. • It can be beneficial to forward forms needing to be completed to applicant before they start. New staff want to learn about their job and their colleagues and sitting for a length of time filling out paperwork on the first day means valuable induction time is needlessly taken up. • Other staff may not be informed that a new staff member is commencing and may not feel involved themselves and this could result in a lack of support by them for the new staff member. • This worsens where most staff in a department are unaware of new staff commencing and to the new staff member this may feel like the ‘department’ itself is not providing support. Colleagues need to be given time to introduce themselves and spend time with new staff. However, some existing staff may feel threatened and respond negatively to new staff and even bully them. Thus constant monitoring is required.

280

Bernard O’Meara

• In these cases, new staff may feel lost, alone and uncertain. If the person is placed in a temporary role, the person may feel she or he is just being killing time rather than feeling like effectively contributing. The early engagement of applicants and new staff can help ensure that these people have realistic expectations and that they create appropriate psychological contracts. Thus, if applicants are engaged in socialisation prior to commencing in the job, there may be a reasonable expectation that this will continue post commencement.

9.5.

Disengagement

Staff determine their level of engagement based on their perception of the antecedents of engagement as just discussed. The level of engagement varies and is dependent upon their perception. However, staff may also choose to disengage themselves to various degrees if their perception of the antecedents is not positive. Kahn (1990, p. 694) defines personal disengagement as: … the uncoupling of selves from work roles: in disengagement, people withdraw and defend themselves physically, cognitively, or emotionally during role performances. The personal engagement and disengagement concepts developed here integrate the idea that people need both self-expression and self-employment in their work lives as a matter of course. Kahn (1990) argued that staff can disengage themselves but can continue to follow the ‘script’ that the job dictates. Thus, while a person may be undertaking job tasks their productivity is minimal and they limit the amount of cognitive energy they would normally display on the job. They exert only minimal effort and do not go any further than that. Disengagement in the first few weeks or months of employment may very well make a new staff member decide that he or she has made the wrong decision in joining the organisation. The new staff member is then left with an awkward decision — does he or she remain in a job that is not rewarding or challenging, or remain with an organisation that does not appear to be committed to staff engagement. Ultimately the decision is to give the job/organisation more time or they decide to leave the organisation. Tasker (2004, p. 8) undertook research on engagement in the United States and found the following: The results, drawn from a survey of 400 HR professionals conducted via the Personnel Today website, are surprising. One in four organisations admitted that staff were not engaged. A similar number said the situation had worsened in the past year. And 44% said that tackling engagement was an overwhelming challenge.

A New Start

281

While 69% of directors believed that staff in their organisations were engaged only 38% of HR managers actually agreed with them. The obstacles to tackling disengagement included: • A lack of time (48%) • A lack of knowledge (40%) • Poorly skilled line managers (50%) A strategic-based organisation that values staff as assets and achieves a sustainable competitive advantage through them would make the time, seek professional input and invest in the development of line managers. Tasker (2004) reviewed how organisations measure engagement and found that 67% use staff turnover as a measure, 60% used staff surveys and 42% used the achievements of targets as a measure of engagement or lack of it. The use of staff turnover is a reactive approach that looks at the past, and while much can be learnt from this, the staff have already left, talent is diminished and costs have increased. The People Performance Profit or other outcome model stated that the right staff must be employed, engaged and developed for an organisation to achieve its sustainable competitive advantage. Pech and Slade (2006) cite other reasons for disengagement as: • A lack of trust between management and staff, and note that research suggests that only 39% of staff believe what their leaders tell them. • There is a correlation between levels of employee engagement and management’s self-efficacy. They do note the effect of a change in leadership at Xerox as an example of how disengagement can be challenged and reduced. Pech and Slade (2006) cite the appointment of Mulcahy at CEO at Xerox. They argue that employees respond to an environment of trust and Mucahy developed this by demonstrating to others her willingness and ability to immerse herself into her job and the organisation. Secondly, she equipped and empowered others to do likewise. As the level of trust improved so did the level of staff engagement. From the perspective of SET, staff viewed the resources and abilities she was providing them with as deserving an equal level of effort from them. Saks’ (2006) research found that job and organisational engagement are related to employees’ attitudes, intentions and behaviours. It was a predictor of a person’s intention to quit. If engagement is a motivational tool, then disengagement will demotivate staff and may eventually lead to staff leaving the organisation. May, Gilson, and Harter (2004) demonstrated that psychological meaningfulness is linked to job satisfaction, internal work motivation, turnover, performance and absenteeism. Psychological safety is related to trust, support and building confidence. If disengagement occurs, it suggests that the person is not suited to the job or that psychological meaningfulness and safety are not present.

282

Bernard O’Meara

In order to re-engage staff, these factors need to be rebuilt and the relationship between staff and their colleagues and supervisors strengthened. Hence, the orientation period is crucial in fostering the right psychological conditions and interpersonal relationships. If these are ensured early in the new staff member’s employment, they can be reinforced and strengthened over time. If staff become disengaged, then there is a higher probability they will leave the organisation.

9.6.

Talent Management Systems

Strategic recruitment and selection allow organisations to acquire talent and often the holder of that talent commences with an organisation is low to middle management position or even in a graduate programme. At some point either a talent deficiency was identified or a person with unexpected talent applied for a position. At that point, selectors then review their existing talent bank as well as their talent development programme, results of VRIO analyses and succession. Ideally these are all fully integrated and linked via a learning content management system (LCMS) or similar mechanism. Little (2010, p. 392) notes that talent management applications can include: • • • • • • •

Workplace planning Workforce and talent acquisition and induction Performance management Career management Succession planning Learning management Compensation management

Talent management needs to cover the acquisition of talent, its development, use and retention. The above points are all important and need to be fully integrated. However, the people driving and responsible for talent development and management are the people who have to know how to use the system effectively. Talent acquisition occurs through strategic recruitment and selection and needs to be considered in the context of education, professional and personal development as well as succession. A person possessing unique talent needs to be made welcome and given learning opportunities, but he or she should have very realistic not idealistic expectations. The mentor and line manager will be those who measure outputs of new staff and will probably be the people who construct learning activities in conjunction with talent acquisition and development staff. Little (2010) also notes that the talent development and management staff will need to align learning and development activities with the strategic imperatives of the organisation. This allows an insight into how new staff can contribute in the longer term to desired corporate strategies and values.

A New Start

283

A greater range of learning technologies now exist that enhance the learning experience through the use of e-learning, m(mobile)-learning and the use of tablets and podcasts provide different dimension to learning and are more convenient than formal classroom style learning. Work duties and learning are interrelated and interdependent and need to be considered as complementary in nature. They both add value to new and existing staff and it is beneficial to construct learning opportunities within this duality. Ross (2013) argues that in many instances a person with talent is left to sink or swim as they progress into new roles and undertake poorly considered projects that lack support, structure or even purpose. She argues that new staff with talent have been acquired because they can demonstrate their level of talent and this has been recognised by talent acquisition management. However, talent can often be derailed and this can lead to the person leaving the organisation. Where a person has been recognised as having talent and potential, a variety of reasons for derailment may arise, but most are controllable by management. At the personal level, staff may derail due to psychological forces, personality traits or behavioural flaws. However, if a new person commences with an organisation and displays signs of stress or pressure, most organisations have EAPs to help staff through these periods. In the case of a person with both talent and potential it is even more important to ensure the organisation provides as much support as possible. At the organisational level, talented staff may derail because of a lack of socioemotional support or because transitions from job to job or project to project are not adequately handled. An organisation may guide a person into an inappropriate career path or not take adequate action once this is realised. Socialisation and accessing social structures may fail and a culture rift may occur or the expectations of the individual or the organisation are unrealistic. Ross (2013) argues that if a person was recognised as having talent and potential, then derailment is preventable in a strategic and proactive people-oriented organisation. Where a new staff member has known weaknesses, these need to be reduced or eliminated via training, education, learning experiences or counselling. However, known weaknesses can be addressed by an organisation that knows its staff and new employees well. Where an organisation does not know its staff well enough to help them, then there is a disconnect between the developmental sub-system of the organisation and its communication and responsibilities sub-systems. Management may adopt the view that the person has talent and potential so ‘he or she will be alright’. This is akin to the sink or swim scenario mentioned earlier and management may be puzzled in the person does not live up to their expectations. However, a proactive mentor, talent management team and supervision can effectively intervene early and ensure the right support is given to the person. Organisations can invest heavily in talent but in needs to be understood, supported and developed appropriately. Ross (2013) notes that talent is usually evaluated on individual performance and contribution but the next step to become a

284

Bernard O’Meara

manager or leader requires the person to use and display a totally different set of skills to foster team, section or departmental achievement and cohesiveness. Talent derailment needs to be considered as part of the integrated talent management within an organisation. As such mentors and others can monitor new talent and provide support, guidance and coping strategies when and where necessary. Knowing what signs to look for means that derailment may be avoided.

9.7.

Individual Career Maps and Succession

An individual career map is just that — a map of development and experiential learning activities designed to help new staff learn about their job, the organisation and the opportunities available to them in the future. The individual career map is a plan created in conjunction with the new staff member and includes learning activities, challenges and experiences. Where a person is joining an organisation for the first time and/or has limited work experience, he or she may not be aware of the different jobs within an organisation. In the case of graduates, they may be required to spend time in a variety of departments in order to familiarise them with the organisation as well as helping them determine which areas they would ideally like to work in. McGreevy (2010) found that 202 respondents or 43.1% of staff remained in their main field or industry while 16.8% sought employment outside of their main field or industry. However, it is relatively common for young people to change career directions after discovering jobs which they knew little about. Younger people may find it easier to move between industries and to explore avenues not previously considered. Those moving between jobs and/or industries bring with them transportable human capital, talent and potential and moving to new jobs or different industries may allow individuals to bring talent with them that is rare in a particular job or industry. Hence, many organisations will encourage young new staff to try different roles within the organisation till they find one that suits. The job holder should be appreciative of such as opportunity and possibly be more motivated. Individual career maps lead into succession. In the simplest sense, succession maps out staff who are considered suitable to take on a role when that job holder leaves the role. Tierney (2013, p. 11) addressed the question of succession in accounting or Certified Practicing Accountant (CPA) firms and found some misconceptions, including regarding the appointment of a new managing partner. The person should be: • • • •

The firm’s best business developer Aged 50 or older Be a professional CPA Be selected from the firm’s current pool of applicants

A New Start

285

These points reflect a traditional conservative view about succession. However, successors can come from outside the organisation or brought in a year or so before the job holder leaves the role. Age does not necessarily reflect experience and people unfamiliar with the organisation or from a different industry may bring new ideas, visions and strategic options irrespective of age. Also a good business manager need not be a member of a professional body associated with the organisation. Most Health Service providers and hospitals have CEOs who are not medical or allied health professionals but do know how to run such an organisation.

9.8.

Training and Development

Talent development staff bring unique capabilities to an organisation. They need to understand the personality and learning styles of those they are helping to develop as well as creating training, education and development learning experiences across a broad range of media. Vincent and Ross (2001) argue that the development of staff is important to the individual, the organisation and the broader community. Training, education and development add value to staff, who in turn add value to their organisation and their community. These learning experiences need to be carefully constructed around the job holder’s existing levels of job skill, organisational role and desired career ambitions. However, Vincent and Ross (2001) believe that programmes need to be tailored to the individual, not a group. They highlight the concept of multiple intelligences that allow problems to be solved in ways that are valued in one or more cultural settings. This applies to the crafting of goods as well. There are seven intelligences or learning styles as listed by Vincent and Ross (2001, pp. 38 39).

9.8.1.

Multiple Intelligences

Linguistic people have the ability to communicate effectively in either written or oral form. These people like to read, write and tell stories and learn best by saying, hearing and seeing words. Those with a linguistic disposition may like to engage in debate or discussion and can learn via electronic means or by reading books and attending lecture style settings. Logical-Mathematical learners work well with numbers and higher order thinking. They like to undertake experiments, solve puzzles and are good at mathematics, reasoning, logic and problem-solving. Such people learn best by categorising, working with abstract patterns and games involving logic. However, they need to understand the basic concepts before they can deal with detail.

286

Bernard O’Meara

Visual-Spatial learners think in terms of physical space. They learn through graphic images and like to draw, build, design and create things. They learn through mind-mapping, using models and different forms of media. Musical learners are sensitive to rhythm and sound. They will express themselves musically and like to sing, hum or listen to music. They learn through song and like listening to music. However, they also learn via the use of musical instruments, radio, stereo and multimedia. Body-Kinesthetic learners use body movement in learning and expression. They like to move around, make things, touch things and talk. They enjoy physical activities, dancing, sports and acting. This group learn by doing the job, acting out situations, simulating real situations. Interpersonal learners understand and interact with other people. They like to have loads of friends, are talkative and join groups. They learn by sharing with and relating to others, are good leaders. They enjoy group work and seminars and will seek time and attention of mentors and educators. Intrapersonal learners like to work alone and pursue their own goals and interests. They know themselves well and have an inward focus. They follow their instincts and like being original and may impart wisdom and motivation while they may also have strong wills, confidence and opinions. Throughout the selection process, it may be possible to identify the intelligence and learning styles preferred by applicants. As information is being gathered and applicants engaged in the commencement of intense socialisation practices, selectors can discuss their observations and responses to questions with talent management and development staff. The gathering of relevant data about applicants can be viewed as a holistic approach, so that selectors can ensure that the appropriate resources and support are available for successful applicants. The inclusion of learning and intelligence styles as information to be gathered by selectors ensure that all necessary preparation is made for the induction of successful staff.

9.8.2.

Learning Styles

In the mid-1980s Kolb identified four fundamental learning styles: Concrete Experience, Reflective Observation, Abstract Conceptualisation and Active Experimentation. Kolb posited that people learn by grasping a figurative representation of experience and is transformed into meaningful knowledge (Rodwell, 2005). However, Nielsen (2008) argued that learning styles are only one component of effective learning. Learning styles are complemented by teaching styles, the nature of the knowledge being transferred as well as the motivation of the learner and the benefits to be derived through learning. A thorough understanding of learning and teaching styles is required in order to develop meaningful learning experiences. If successful applicants enter an organisation that is prepared to meet their individual needs, then the orientation and socialisation processes will flow smoothly and

A New Start

287

allow the newcomer to focus on learning the job, learning about the organisation and learning to fit in. The learning curve of a new staff member rarely has a linear upward trend. At times the learning curve will flatten as new staff process the information they have obtained and determined what is important, why and to whom. However, once the learning curve flattens, then insecurity may overtake new staff and, in any event, more strategic mentors and developmental staff will be able to provide advice or support as necessary so that the learning curve may once again take on an upward trajectory. The same happens with the motivation curve of new staff. At times new staff levels of motivation will plateau and mentors and support staff will be able to apply coping strategies to reboot the motivation curve. If either the learning or motivation curves of new staff are allowed to plateau for too long, then the organisations runs the risk of new staff disengaging which is contrary to strategic talent management practices.

9.9.

Retention and Turnover

A great deal of research has been undertaken with respect to staff turnover and how a proper induction can reduce the immediate incidence of staff turnover within the first 12 months of employment. The Michael Page Employment Index, Hong Kong (2011: Table 9.1) for Quarter 2 showed that just over 25% of respondent employers in the Asia Pacific region (i.e. China, Hong Kong, Singapore and Australia) believed that there would be an increase in staff turnover. Table 9.1 also shows that, on average, over 44% of respondents in the same countries considered staff retention as a major priority. Certainly each year sees an increase in the cost of staff turnover, but the more strategic organisations view staff turnover as more than just a cost. Table 9.1: Percentage of Asia Pacific employers expecting an increase in staff turnover. Country China Hong Kong Singapore Australia

Percentage of respondents Percentage of respondents placing expecting increased staff turnover retention as a major priority 37 39 25 29

47 35 53 43

Note: Table 9.1 is based on information from the Michael Page Employment Index Quarter 2 (2011), Hong Kong.

288

Bernard O’Meara

They view staff turnover as a loss of human capital and a decrease in their talent banks. Larger organisations attempt to retain staff longer and have the resources and finances to absorb associated costs. However, small- to medium-sized organisations may not be able to absorb the costs as easily. In the United States, Jacobs undertook research for the Society of Human Resource Management (SHRM) (2012) and found the average annual all industries turnover rate to be 13% and the average employment duration to be 8 years. The average voluntary turnover rate was 9% and average tenure was again 8 years. The data was compiled from the Human Capital Benchmarking Database (2012 2013). Research reported in China in the China Times in 2013 showed that 40% of employees polled stayed for 1 2 years and 39% stayed between 2 and 4 years (Unknown, 2013). A report by both the Australian Human Resource Institute and TalentDrain from the United Kingdom refers to the cost of replacing a staff member in 2007 was 150% of the person’s salary and this figure has since increased. The 2008 report shows that Australia had an annual turnover rate of 18% (AHRI, 2008). The overall reasons for leaving across the range of organisations surveyed were: • • • •

50.3% left due to a lack of promotion opportunities 49.4% left due to inadequate pay 36.4% left because of poor relationships with the supervisor or manager 22.3% left because of a poor work life balance

Of the organisations surveyed, 76% had a target of reducing staff turnover. The most typical intervention to reduce staff turnover, used by 60% of respondents, was to improve the induction process. Fifty-eight per cent wished to improve communications with employees while 54% were attempting to increase learning and development opportunities. Hence, the importance of a properly constructed induction programme as a means of creating the best possible environment for new staff to feel valued. However, both parts of the induction programme form the basis for staff to develop and grow professionally within an organisation. The socialisation processes and accessing social structures leads to psychological benefits and help the newcomer to fit in. The orientation programme helps the person understand the job and the organisation and its expectations. Thus, a thorough and balanced induction programme can establish a sound foundation for new staff to commence their careers or continue with them in the new organisation (AHRI Pulse Survey, 2008).

9.10.

Graduate Programmes

Graduates undergo an induction programme along with other new staff entering an organisation. However, the graduate programme will be in place for a year or more.

A New Start

289

Graduates may be at a disadvantage because they have limited or no relevant work experience at all except for placements and internships. The lack of experience means they may not fully appreciate professional practice and standards or the role that socialisation and accessing social structures will play in their future careers. The transition can be awkward for graduates. The programme continues well beyond the induction period and will allow graduates to spend time in different roles or environments so they are aware of how the roles of other staff interact with their roles so they gain a better overview of this interaction. Smith (2013) gives a good insight of how graduate enter the nursing profession. Graduates are not fully prepared to prioritise tasks, be efficient and organised as well as empathise with patients and display good interpersonal and communication skills. Their confidence may exceed their ability. Errors can occur due to poor judgement and a lack of practical experience, knowledge and skill. Graduate mentors also have their normal duties to undertake as well as mentoring one or more staff. Because of this, the mentor is not always available when the graduate needs them. Research on the level of support given to graduates in their on-boarding time found that there was a lack of staff which increased the need for graduates to be job ready almost immediately. The mentors were inconsistent and graduates were not prepared for the reality of working in a hospital. As the hospital had a large number of part-time staff with a poor skill mix which made it difficult to support and effectively mentor staff. Smith (2013, p. 8) notes that the most severe barrier to preceptorship was ‘staff attitudes that included treating the graduates in a rude and dismissive manner and as being ‘naturally incompetent’ and inferior to others’. The plight of graduates is not as straightforward as some might think. In the case of nursing, graduates become very aware of public health funding and budget constraints. They also work in emergency and psychiatric departments where death, violence and personal risk may be extremely confronting for young graduates.

9.11.

Summary

This chapter is the first of Part 3 (i.e. Joining together) and as such reviewed what happens once new staff join an organisation. The induction programme provided for new staff is intended to allow them to become familiar with the job and the organisation. When new staff enter an organisation they enter a different systems with its own ways of doing things, its own priorities and expectations of new staff. The orientation will ideally allow new staff to learn about the job, its tasks and responsibilities and how it interacts with other job holders. The orientation is one part of the overall induction programme and also introduces new staff to how the organisation operates, its systems, policies and processes. Organisations provide new staff with CD-ROMS, induction handbooks or place

290

Bernard O’Meara

relevant information on corporate websites which are easily accessible by existing and new staff. A good induction programme will normally ensure that a properly trained and experienced mentor is given the role of mentoring a new staff member. The experience of the mentor will ensure the person can answer both job and organisationrelated questions asked by the mentee. The role of mentoring is encompassed into the mentor’s overall role so that the mentoring becomes a part of the person’s job and not in addition to it. As mentees need regular contact with mentors another mentor needs to be included into the process so that he or she can step in when the principle mentor is unavailable. Many organisations provide new staff with the contact details of key staff and encourage an open and informal relationship so that new staff can access key people as the need arises. Other organisations provide new staff with the methods to discover answers to their own queries and in doing so increase the confidence of new staff. The second and equally important half of the induction is the socialisation of new staff. The socialisation process which commences during selection creates opportunities for staff to create relationships with colleagues in the work area and across the organisation as a whole. As a system each organisation has its own social structure and the mentor as a respected and experienced staff member, he or she can provide the mentee with access to this structure where the mentee can learn about the culture of the organisation and what it values. New staff need to understand social norms and acceptable patterns of behaviour in order to fit in and feel valued and included. Access to social structures can be enhanced and relationships established when organisations provide all staff with social networking capabilities so they can create their own social media sites and share information with other staff. This can allow new and existing staff to find areas of common interests and forge a relationship accordingly. Mentors need to have frequent follow-up meetings with mentors and/or senior staff in a relaxed informal setting such as lunch. This facilitates the construct of sound relationships and removed any perceived barriers that senior staff are not accessible or people friendly. Talent management systems need to be in place to aid in the development of talent and human capital in new staff. Sequenced learning activities can be put in place to expose newcomers to increasingly more challenging tasks and responsibilities. However, talent derailment occurs when talent management and development staff create unrealistic expectations of new staff or take their preparedness for success for granted. The possibility of derailment needs to be considered so that new staff can be monitored and provided with support and coping strategies as and when necessary. The development of talent and human capital needs to be undertaken in the context of the organisation’s strategic direction and values. Work and development are inseparable and each needs to effectively complement the other. Other functions and activities such as creating individual career maps, succession planning and development are also related and are interrelated and interdependent.

A New Start

291

As such, these provide the future talent and human capital of the organisation and, to be effective, need to be organised once the applicant accepts a position if not earlier. The intention to leave needs to be offset by increased levels of motivation and by rebooting learning and motivation curves should they plateau for any reason. This requires constant monitoring of new staff for signs of any concerns that need to be addressed. Research was cited to show that the average tenure of staff can be as little as four years. Table 9.1 showed that across the globe staff retention is a constant or even growing issue that is now a major concern for a substantial number of organisations. However, the most favoured attempt to reducing voluntary turnover is improving the effectiveness of organisations’ induction programmes. Organisations need to get it right the first time and maintain its effectiveness.

9.12.

Review Questions

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

What is an induction? Is orientation important? Why is socialisation so important? Are social structures necessary for new staff to access? Is talent management a critical part of an organisation? Why should succession be considered once new staff commence employment? Do career maps need to be individualised? What part does technology play in new staff development and induction? Should organisations show they value new and existing staff? Can new staff be taken for granted? Is staff retention related to an effective induction practices? What is a motivation curve? What happens if a person’s learning curve plateaus? Is it necessary to understand the type of intelligence and learning styles of new staff? 15. Why is the relationship between graduate programmes and induction?

9.13.

Learning Activities

1. Identify an organisation that you would like to work for. Ask the staff about their induction processes and analyse their effectiveness. 2. Determine how effectively they engage new staff and maintain their levels of motivation. 3. Analyse the socialisation practices used by an organisation and determine how they support new staff with access to social structures.

Chapter 10

Recruitment and Selection Costs Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Appreciate the cost of strategic recruitment and selection • Understand the role that talent acquisition plays in reducing organisational costs • Value a fully integrated approach to talent acquisition and retention • Appreciate that talent acquisition is a robust form of management • Understand how a talent acquisition budget is determined • Understand how to prepare a business case for strategic recruitment and selection

10.1.

Introduction

The cost of strategic recruitment and selection can be quite high. The costs associated with acquiring new staff are high in terms of both direct and indirect costs; however, there is a range of other costs that is often not considered. This chapter discusses the costs associated with talent acquisition and its shortterm development. More importantly, the chapter discusses the impact of recruiting the wrong staff in the first place — the cost of getting it wrong. Many organisations only budget for the direct or obvious costs and therefore the true cost of talent acquisition is not known. However, the more strategic organisations do identify the true cost of acquiring talent domestically and in overseas locations. While the cost of talent acquisition will vary depending on the job and the size and complexity of the organisation, costs will still be incurred. Talent acquisition

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

294

Bernard O’Meara

staff should know what the cost to acquire talent is and should have an appropriate budget and be held accountable for its expenditure and success. If a talent acquisition department can successfully demonstrate that it can make a significant contribution to the achievement of business goals, then it should be able to justify its budget. Talent acquisition and management departments can partner other business units in order to help them achieve their desired goals. In this sense, talent acquisition becomes a strategic business function that drives the achievement of corporate objectives and strategies. As a full partner in line with other business areas it can prove its worth and justify its existence. A decade or more ago, an HRM department would have been a middle management that responded to corporate strategic needs but it was seen very much as a ‘soft’ business area. In the contemporary business environment it has been realised and accepted that talent acquisition achieves success and drives a business. Talent acquisition and management are viewed as critical business areas and core to any business. These functions are staffed by specialists who need to understand people as well as all areas of an organisation, its strategy and its competitors, and its industry. Like any other business function, talent acquisition and management needs to be held accountable for its activities and expenses and its overall contribution to achieve corporate strategy. These areas need to be recognised as integral core business elements not peripheral ones. Previous chapters have argued that talent acquisition is essential if an organisation is to be successful and it is not necessary to revisit these arguments but it is timely to remind one of these as this chapter treats talent acquisition as a core and critical business function.

10.2.

Talent Acquisition and Internal Consulting

In order to promote the role and competence of talent acquisition and management, many organisations have constructed the human resource function as an internal consultancy. This means that the function has to be competitive with external competitors and extremely effective and efficient internally. If client departments are not satisfied with the service they receive, in many instances, the organisation will allow the department to seek an external consultancy for assistance in acquiring talent and human capital. However, while there are a number of metrics that can account for the costs involved, inevitably the measures relate to what talent acquisition and management are there to do. Once employed, new staff need to be retained and developed. The concepts espoused in this text include viewing staff as an asset and that the relationship between people, performance and profit or other outcomes drive the organisation to success. High turnover of staff and/or poor performance result in less than optimal outcomes and it becomes harder for the organisation to achieve its desired strategic objectives.

Recruitment and Selection Costs

295

Traditionally, such PM and HRM were viewed as cost centres — that is these departments spent money but did not derive any revenue. This contrasted with profit centres or revenue-generating functions such as sales and marketing. Sales departments may have an expenditure budget to be spent on advertising, merchandising and promotional activities. But such departments also have income expectations, where the organisation expects the department to generate a predetermined revenue amount. HR departments were not expected to generate income and were, thus, considered cost centres. Roberts and Grimes (2011) undertook an investigation into the Return on Investment (ROI) in the mental health arena and made a comment that resonates with talent acquisition and management staff. Their report suggested that ROI was elusive as the benefits and outcomes showed up in other areas rather than the one where the investment was made. The same is true of talent acquisition. It can be difficult in determining the benefits of a cost centre as the impact of outstanding new staff will be most obvious in the areas they work in and not the talent acquisition department that recruited them. The performance of new staff is monitored and assessed by functional and operational staff. The performance contributes to the achievement of organisational strategies and is reflected in the performance of the team or section where the individual works. It need not reflect on the talent acquisition staff who selected the individual. However, a transformation was required before recruitment and selection could be recognised as talent acquisition and management. PM was transformed into HRM and then became SHRM. The transformation led to strategic HRM becoming knowledge and talent management. The transformation occurred once organisations recognised the critical contribution made by talent acquisition and management. Along with the transformation came accountability and a means of evaluating contributions made by talent acquisition, despite the evidence residing in other areas, such as engineering, where new staff were recognised for their talent. An example of this transformation and ability to measure HR contribution can be found in IBM. Ashton (2002) records how IBM had declining revenue and major losses in the 1990s and a full review of functions and operations was required to turn the business around. A part of the strategic change involved HR operations being completely reviewed and constituted as a standalone service business, the National Human-Resources Service Centre (NHRSC). Initially, a small number of staff were located at IBM locations throughout the United States. Ashton (2002, p. 9) noted: ‘Later, the NHRSC was launched in Raleigh, North Carolina, to deliver information to IBM managers, employees and pensioners in the USA, using network technologies. This released HR specialists to provide higherlevel HR support’. Relevant HR information systems were incorporated into the NHRSC and a virtual network of HR partner teams to serve line and business-unit customers, was established.

296

Bernard O’Meara The service centre was the catalyst for HR transformation. Incorporating the best of call-center practice, along with leading-edge technology for self-service, it improved productivity, reduced costs and secured customer (i.e. employee) satisfaction with what HR provided and how these activities were performed. Successive annual cost reductions of 30 percent, 10 percent, 15 percent and 8 percent were achieved, as new programs were added. (Ashton, 2002, p. 9)

The revitalisation of HR allowed IBM to reinvent itself in the way it provided internal services. Ashton (2002) states that the NHRSC is staffed by 400 people, delivers 22 programmes from employee benefits, workforce diversity, staffing and management development. The centre provides support to all 625,000 IBM employees as well as staff dependents and spouses. The NHRSC receives 1.7 million calls a year, deals with more than one million queries online, processes nearly 700,000 job applications, surveys the attitudes of 188,000 staff and considers 10,000 staff ideas. The transformation allowed IBM to rethink its relationship with staff and other stakeholders. However, IBM turned HR into an internal business unit and applied the same business principles it uses in other areas of its business, to measure the performance of HR and to hold it accountable. HR and talent acquisition can be viewed as business units, held accountable and their performance measured as is the case with other segments of a business. The NHRSC was layered to provide maximum efficiency. The first tier consisted of HR generalists who dealt with initial inquiries. These people dealt with transactional issues and helped resolve issues quickly. The majority of issues were resolved at this level. The second tier consisted of HR specialists. Advanced expertise resided in this area and practitioners assisted management in planning programmes, interpreting policy and conducting programmes. Managers could speak directly with specialists in different areas and less than 20% of inquiries were dealt with at this level. The third tier consisted of HR experts who acted in the realm of programme design, research, providing policy advice, developing strategies and identifying external benchmarks. The tiers filtered issues so that those in the second and third tiers could concentrate on their specific areas and helping management accordingly. The Royal Dutch/Shell Group created Shell People Services in 2000 which provides internal consultancy services to Shell operations. These services include global recruitment, development and retention. Dawson (2003, p. 40) noted that the ‘creation of Shell People Services was to create an internal HR shared-services organisation offering both transactional and expertise services to its businesses’. Both IBM and Shell adopted similar approaches aimed at maximising the impact of HR services on their respective businesses in a way that could be measured and continuance supported by a convincing business case. A major issue for Shell was helping HR staff to understand the role of a consultant as a business partner rather than HR being a functional role. An external

Recruitment and Selection Costs

297

organisation was contracted to provide a programme that would help HR staff make the transition from a functional role to that of an internal consultant. Dawson (2003, p. 42) cites a HR team leader who emphasises the importance of this role: Our business is all about people, so the success of the practice comes down to having individuals who are skilled, confident and able to deliver the excellent service that clients expect, day-in, day-out. This program has helped our people to develop a fundamental shift of attitude and behaviour as well as new skills. In turn, that has enabled them to add greater value to the business both strategically and operationally. Prowse and Prowse (2010) suggest that measuring HR performance and the link between HR and organisational performance is far from clear. In many instances, the term performance means financial outcomes, while intangibles such as employee goodwill, including commitment and engagement, may not be properly measured using financial calculations. The link between talent acquisition and management is a little easier to grasp when it is considered as an internal consulting business partnership rather than a functional activity. The outcomes of an internal consulting partnership can be measured in terms of client satisfaction and the ability of talent acquisition staff meet the high standards required by clients. In terms of an internal consulting business partner, the client, another area of the organisation, provides talent acquisition staff with its requirements in terms of staff needs. These may include necessary qualifications and experience the person must have, a timeline for the acquisition strategy as well as a budget. When using an external consultant an organisation will provide measurable outcomes which must be achieved. In some instances, where these outcomes are not met, clients need not pay for the service which has not served its purpose. Most consultants will also provide a guarantee that the person will remain employed by the client organisation for 3 6 months or more. If not, the consultant must secure another equally employable person free of charge. In the case of an internal consultancy, the talent acquisition staff have the benefit of knowing the organisation, its needs, culture and strategic direction. However, in a true consultancy arrangement if the client is not satisfied with the internal talent acquisition staff performance, the client can use other means to acquire talent and human capital. This can include using an external consultancy in preference to an internal consultancy. This increases the pressure on internal talent acquisition consultancies to meet or exceed client requirements. Placing the same constraints on internal consultancies as is the case with external consultancies should mean that performance is measurable. The difficulty in measuring performance of internal talent acquisition consultancies is being able to define performance and measure it. A number of metrics will be

298

Bernard O’Meara

discussed later in this chapter; however, the performance of talent acquisition staff can be measured in terms of keeping within budget and attracting a pool of suitably qualified staff. But performance can also refer to the performance of the staff recruited. This can reflect on the fit that exists between new staff and the job or organisation. The closeness of this level of fit achieved by talent acquisition staff can also be measured. Talent acquisition needs to add value to the organisation and it needs to be treated like any other business activity. Its performance needs to be measured and it needs to be held accountable for its performance or lack of it.

10.3.

Return on Investment

When an organisation invests in an area such as talent acquisition or a human resources department, it expects to get a return on its investment. Cascio and Boudreau (2011) define ROI as the total expected benefit ($) divided by the programme investment ($). The outcome is expressed as a percentage. ROI (Cascio & Boudreau, 2011, p. 39) includes the following components: • • • •

The inflow of returns produced by an investment The offsetting outflows of resources required to make the investment How the inflows and outflows occur in each future time period How much of what occurs in future time periods should be ‘discounted’ to reflect greater risk and price inflation

As a relevant example of ROI in context the authors (Cascio & Boudreau, 2011, pp. 39 40) use the following example: Suppose your company develops a battery of pre-employment assessments for customer service representatives that include measures of aptitude, relevant personality characteristics, and emotional intelligence. Payments to outside consultants total $100,000 during the first year of operation. The measured savings, relative to baseline measures in prior years, total $30,000 in reduced absenteeism, $55,000 in reduced payments for stress-related medical conditions, and $70,000 in reduced turnover among customer service representatives. The total expected benefits are, therefore $155,000 ($30,000 + $55,000 + $70,000). ROI = Total expected benefits/program investment ROI = $155,000/$100,000 = 55 percent The ROI expresses the relationship between benefits and expenses of a project as a percentage. The higher the level of a positive ROI percentage, the better the return

Recruitment and Selection Costs

299

on the investment. This is a common evaluative accounting tool that allows management to compare projects and to determine which are providing an adequate return and which projects can be terminated. This is one tool amongst many that managers use to base their decisions upon (Birt, Chalmers, Byrne, Brooks, & Oliver, 2012). Because accounting and economic measures such as ROI form the basis for organisational decision making, talent acquisition needs to project its activities in ways that are understood. Using measures such as ROI can help management understand the financial role that talent acquisition can play in an organisation. Talent acquisition staff need to understand the language of business decision making and use it accordingly to justify its role and the benefits derived from its activities. Talent acquisition activities can be evaluated and justified along with other parts of an organisation. However, before evaluating performance and economic return a baseline needs to be established for comparison. The impact of talent acquisition staff can be immediate but they can also be best measured over the medium to long term. The ROI formula can be used to calculate the benefit of each programme and even each talent acquisition search. As a minimum, talent acquisition staff should know how much previous searches and appointments have cost. Direct costs are easier to calculate and Birt et al. (2012) define a direct cost as one that can be linked directly to a cost object. Indirect costs can include: • • • •

Advertising costs Cost of using consultants Induction costs Medical examinations

An indirect cost (overhead) is one where the cost may be spread across multiple aspects or it may not be easy to calculate the cost. An example may be how much time a selector spends on the telephone speaking to interested candidates. Keeping a log of calls and times may be feasible but not practical. The same can be said of electricity used to power a computer used in the selection process (Birt et al., 2012). Other examples of indirect costs used in selection can include: • The time spent by selectors reviewing re´sume´s • The time spent by selectors and line managers discussing facets of selection Such costs may be estimated but are rarely used in determining the total cost of talent acquisition. However, where this activity is conducted as an internal shared business consultancy, then it is possible to allow for indirect costs. Birt et al. (2012) note that there are different cost allocation methods, including activity-based costing. Cost allocation refers to the assigning of indirect costs to the multiple cost objects (an entity that requires a separate measurement of cost) which use a resource. A cost driver is a measure of the activity that explains the cost object’s use of indirect costs. An activity driver represents the attributes of the individual activities

300

Bernard O’Meara

and recognises that there can be different reasons for allocating indirect costs. Resource drivers measure the resource consumption by activities. A talent acquisition consultancy centre operated as a standalone business can calculate all its expenses as well as revenue generated by service provision to other organisational segments. In this way talent acquisition can be assessed via ROI and other measures, as any other business would be. Other baseline information required might include: • Total organisation turnover rates • The ratio of talent acquisition and management staff to all staff • The total cost of operating a talent acquisition or knowledge management consultancy or centre • The turnover rates of each business unit, department, segment or team • The average tenure of new employees • The cost of training and induction • The impact of new staff on productivity, output, quality, customer service • Accident rates of new staff • Industrial disputation involving new staff • Use of grievance procedures by new staff • Assessment centre costs and outcomes • The use of organisational social media by new staff • The outcomes of climate, motivation, leadership and other surveys • The achievement of organisational goals attributed to new staff • The use of EAPs by new staff Each organisation will have different types and amounts of information available. However, in order for the impact of effective talent acquisition to be measured, as much information as possible needs to be gathered and analysed. Once this is done, then past performance can be analysed but more importantly future performance can be monitored, analysed and compared to the baseline information. This is the start of creating a business case to justify investment in talent acquisition. The performance of newly hired staff can be monitored and individual performance measured in terms of how well the person does the job, the quality and quantity of their work, their engagement, promotability and commitment. These outcomes can then be compared to comparable data relating to other staff and the closeness of person and job/organisational fit can be measured. Any improvement in quantitative or qualitative data can be used to illustrate the benefit of investment in talent acquisition. However, the reverse is also true. Where data shows a decline in benefit or a decreasing ROI, the reasons need to be investigated and rectified where possible. Greater analysis of data can indicate areas for improvement by talent acquisition staff and self-monitoring and self-evaluation and improvement is a part of any business activity. Organisations expect a return on their investment.

Recruitment and Selection Costs

301

10.3.1. Expatriate Return on Investment (EROI) McNulty and Tharenou (2004) highlight the cost associated with the operations of most MNCs, that is the cost of expatriation. They cite research that suggests the cost exceeds US$1,000,000 per assignee and per assignment over three years with the total national cost around US$75 billion a year. With the cost of expatriation being so high they justly note that efforts to reduce such costs should be fully investigated by organisations which expatriate staff. Expatriation is a form of talent acquisition and legitimately falls under this banner. An expatriate is a person who is chosen to relocate to a part of an organisation in another country for an agreed period of time. While the term ROI used previously was adequate for general application, each expatriate assignment is different depending on the organisation, the country the person moved to and the job she or he undertakes. As such, they argue that the application of ROI in a purely financial perspective is inadequate. They argue that EROI should include both financial and nonfinancial aspects. McNulty and Tharenou (2004, p. 73) define EROI as ‘… a calculation in which the financial and nonfinancial benefits to the MNC are compared with the financial and nonfinancial costs of the international assignment, as appropriate to the assignment’s purpose’. They also report a failure rate of expatriation amongst MNCs of 44% in the Asia-Pacific region and 63% in Europe. With high costs and high failure rates, they argue that organisations need to identify and understand the costs and benefits associated with long-term expatriate assignments. They highlight a number of costs and benefits arising from long-term expatriation. The negative costs include staff turnover; poor cross-cultural adjustment, poor performance, loss of knowledge when an expatriate leaves an organisation; damage to client relationships, timeline delays and these can impact the profitability of the overseas operation. The benefits include on-the-job internationalisation of key managers; achieving a strategic competitive advantage in the country; the acquisition of cross-cultural experience and knowledge; the acquisition of language skills and a deeper understanding on the local market, clients and suppliers. Deciding to expatriate staff is similar to external acquisition. The rationale or objective of the assignment needs to be determined, a person selected and aspects such as compensation, training and education, family support, performance criteria determined and a plan to repatriate and retain the staff need to be generated. The costs associated with these are relatively straightforward to calculate. An example of EROI could be calculated: Salary of person in host country: $100,000.00 Expatriation salary to allow for the Cost of living in country the person is being expatriated to: $200,000.00. Relocation costs for a family of 4: $50,000.00

302

Bernard O’Meara

Allowance for setting up home, travel (domestic and international), initial accommodation expenses, initial living expenses: $50,000.00 Recruitment and selection costs: $30,000.00 Training and preparation costs for the staff member and his or her partner and staff: $15,000.00 Total: $345,000.00. This is an example only. This amount is not fully costed and does not allow for a flat learning curve. Both items are outlined in the next section. Other intangible costs include social costs such as loss of friends and acquaintances, especially by children as they move to another country, and difficulty in developing language skills by all members of the family. Children need to settle into school, make friends while the parents need to learn to use a new currency, develop new culturally appropriate skills and learn how to navigate around their new host country. One or more members of the family may just be homesick. The staff member has to learn a new cultural pattern, become familiar with the operation, its staff and any practices unique to this operation. The person has to learn and this takes time, but intense socialisation approaches may make this transition smoother. Recruitment and selection of an expatriate, including testing, time of interviewers and an allowance for a 50% learning curve (discussed in the next section), may actually result in a figure four or more times annual gross salary of the position. The benefits include: • • • • • • • • • •

Developing a person who is culturally sensitive and aware Developing a broader knowledge of the organisation from different perspectives Creating new networks and contacts Developing a new client base or retaining clients who might otherwise have moved their business to competitors Cementing an excellent reputation for the organisation Comparing cultures, styles and practices from different parts of the organisation Building future leaders of the organisation Developing staff with enhanced human capital and potential Being able to reduce costs via synergy and input from expatriates Retaining knowledge via experiential learning

While the cost or investment in expatriation are high and may increase even more if the person leaves the organisation, the benefits are also extremely high. Immediate observable benefits may be evident through improved performance, productivity or the achievement of the organisation’s strategic goals — including the purpose of the expatriate assignment. Some of the benefits listed above may be easily quantified, such as the amount of new business the expatriate brings to the organisation, while others such as developing future leaders for the organisation can be quantified over time.

Recruitment and Selection Costs

303

However, the calculation of the EROI is similar to calculating ROI as outlined in the previous section. New business acquired: $500,000.00 Increased learning curve capacity following the assignment — the person understands more about the organisation, its markets, clients and suppliers: $500,000. EROI = Benefits/costs, investment = $1,000,000.00/$345,000.00 = 29% This is an example only and highlights some of the costs and benefits associated with expatriation. Each expatriation assignment will be different and, therefore, the benefits and costs will vary accordingly. Given the high failure rate of expatriation and the loss of opportunities, such as new business and developing leaders for the future, expatriation needs to be carefully considered and sufficient time given to ensure the success of each expatriation assignment.

10.4.

Full Labour Costs

While talent acquisition staff are supported by accounting staff it is useful to know some basic terminology, its use and application. Spencer (1986, p. 45) defines full labour cost as ‘… the person’s salary plus total fringe benefits, plus overhead, divided by days worked’. Full labour cost is used in many accounting calculations and if talent acquisition staff are to speak in a language understood by management, it is necessary to understand how these full costs are calculated. One outcome of a full labour cost calculation is the full cost multiplier which can be used in other accounting and financial calculations. The following calculation includes the following assumptions which may vary between organisations, industries and countries and is based around Spencer’s (1986, p. 46) example: Standard days worked per year = 260 Paid days off = 30 Fringe %=.115 Out of pocket fringe %=.235 Total fringe %=.350 Overhead %=1.15 Hours worked per day = 8 Hours worked each year = 1840 Minutes worked each year = 110,400 The full cost of labour is calculated as follows (allow for rounding errors) Direct labour cost per annum Total annual salary: $100,000.00 Days paid: 260 (may vary)

304

Bernard O’Meara

Total annual salary/days paid = labour cost per day = $100,000/260 = $384.62 Paid days off = 30 (may vary) Direct days worked = 260 − 30 = 230 days (may vary) Direct labour cost per annum: 230 days @ $384.62 = $88,462.60 Calculation of fringe benefits Days off/days paid = 30/260 = 11.5% paid days off fringe percentage Paid days off fringe cost = Salary @ fringe cost percentage = $100,000 @ 11.5%= $11,500 Out of pocket fringe %=.235 Out of pocket fringe % @ salary = .235 @ $100,000 = $23,500 Total fringe cost = Paid days off cost plus out of pocket cost = $11,500 + $23,500 = $35,000 Direct labour plus fringe cost = $88,462.60 + $11,500 + $23,500 = $123,462.60 Overhead calculation Overhead percentage = 1.15 Overhead cost = Direct labour plus fringe cost @ overhead percentage = $123,462.60 @ 1.15 = $141,981.99 Total full cost = direct labour plus fringe cost plus overhead cost = $123,462.60 + 141,981.99 = $265,444.59 Full labour costs Full cost/time worked = $265,444.59/230 = $1,154.11 Hours paid per day = 8 Full labour costs/hour = $1,154.11/8 = $144.26 per hour Full labour cost/minute (110,400)=$144.26/60 minutes = $2.40 Full cost multiplier: Full cost/salary cost = $265,444.59/$88,462.60 = 3 The above serves to demonstrate that when new staff are employed there is a raft of other financial factors that need to be considered. In the above example, the person’s annual salary transforms from $100,000.00 to $265,444.59 once the full cost of employment is calculated. The full cost multiplier is useful as it provides an easy step to calculate the full cost without using all the processes listed above. Once the direct labour cost of a new employee is determined, then it is simply a matter of multiplying that by the full cost multiplier ‘3’ to work out the full cost. Talent acquisition staff need to be familiar with the full cost methods used by their organisations so they can track costs and be able to understand that the

Recruitment and Selection Costs

305

organisation does not view a base salary ($100,000) as the total employee cost to that organisation.

10.5.

The Costs of Recruitment and Selection

Some costs like relocation and expatriation are easier to calculate. They involve direct costs such as airfares, temporary accommodation, use of a vehicle, provision of essentials and access to real estate agents to help them find permanent accommodation. Yet as already noted the cost of talent acquisition can be extremely high. However, the cost of not attracting and retaining the right staff can be even more costly. When new staff commence with an organisation they may have no job-related experience at all and be unfamiliar with the organisation, its products or services or even its industry. In this case the learning curve of the individual may be shallow and take time to build up to an effective contribution. However, the organisation is still paying the person regardless of their productivity and they are, in effect, paying new staff to learn. This situation is captured in Figure 10.1. The linear learning curve in Figure 10.1 shows the slow learning of a new staff member with no previous experience. The upper part of the figure shows the learning by the employee and as this increases so does their productivity. If the employee was on a salary of $100,000, the figure shows that the organisation is paying them to learn for 100% of their time when they first commence and productivity is negligible. Over time, the amount of learning decreases but productivity increases accordingly as they put their knowledge to work. It is unlikely that after a year of employment that the person is fully productive and, as such, a portion of their salary continues to cover their learning. Thus, if the new employee is only 50% productive 100% 90% L e a r n i n g

80% 70%

Learning increases as does work productivity

60% 50% 40%

Initial productivity is low but increases

30% 20% 10% 0%

Salary and time

Figure 10.1:

Learning and salary relationship.

306

Bernard O’Meara

after a year, then the employer would be paying $50,000 to the person for them to learn. If the person leaves the job after a year, then the organisation has paid out $100,000 for 50% productivity. Spencer (1986) suggests that knowledge of the average learning curve of new staff in an organisation can be used to improve person/job fit and reduce the nonproductive learning period. Once the full cost of an employee is known, then an average learning curve of new staff can be monitored across different periods over the first twelve months of employment. Supervisors can provide information about how long it takes a new employee to become 25%, 50%, 75% and 100% productive. The cost per quarter per employee can be calculated in-line with the degree of productivity of each employee. If a change to the selection strategy were used to employ more experienced staff, the additional cost could be used to determine if this improved the learning curve of new staff and if this benefit outweighed the additional cost. Also if a change were made to the induction and training of new staff, then a similar cost evaluation could be made to determine if the change provided greater benefits than costs. As an example, suppose a new employee commences with the organisation and has a salary of $50,000.00. The full cost would be $50,000 @ the multiplier 3, giving a full cost salary of $150,000.00. When the learning period is reviewed after 12 months, it is found that the person is 20% productive after four months, 50% efficient over eight months and 80% proficient after twelve months. If the full cost of the employee is also divided by three (periods of performance review), then the person is earning $50,000 in the first trimester, the second trimester and the third. Table 10.1 shows how the estimate of productivity during a 12-month learning period can be used to determine how efficient or inefficient this learning curve actually is. This calculation is based on Spencer (1986, p. 108). Table 10.1 shows an overall loss of $75,000.00 after 12 months of employment. However, an improvement in selection methods or improving the induction to ensure commitment and involvement can highlight the cost of improvement. The value of time is calculated by multiplying the percentage of productivity by the full cost per period. The percentage of productivity and value of time shown in parentheses in Table 10.1 illustrates the change when a new employee becomes 70% proficient in Table 10.1: The full cost of the learning curve of a new employee. Learning period

Full cost for period @

% of Productivity

Value of time

1 2 3

$50,000 $50,000 $50,000

20% (70%) 50% (95%) 80% (100%)

$10,000 ($35,000) $25,000 ($47,500) $40,000 ($50,000)

Total

$150,000

50% (88%)

$75,000 (132,500)

Recruitment and Selection Costs

307

the first learning trimester and 95% and 100% respectively in the next two time periods. The level of productivity increases significantly, as does the value of the time spent learning. The change and improvement in the selection strategy or a redesigned induction programme can provide a significant overall gain for the employee and the organisation. A fully contributing new employee feels a sense of achievement, while talent acquisition staff can demonstrate cost containment and reduction. This helps justify the investment in talent acquisition and management in a language understood in financial, accounting and management circles within the organisation.

10.5.1. The Cost of Morale It can often appear that costs associated with staff can be difficult to calculate and to some extent this is true. Assumptions need to be made and subjective assessments provided however, these are observable and can be measured once the basic data has been determined. As a baseline, supervisors and managers can calculate the productivity and quality of individuals or teams when they provide optimum output. Supervisors and managers should be able to monitor the performance of their staff over long periods of time. If they are able to rate the performance of individuals or teams on a scale up to 100%, with this being the highest level of performance, it is possible to cost out variables to this. If there were five staff working in a team and the average salary of the team was $50,000.00, then the cost of team is the salary @ 5 members @ the multiplier: $50,000 @ 5 @ 3 = $750,000. However, if morale is low and productivity is lower than optimum at 40% then the effective output of the team is $750,000 @ 40%=$300,000.00. A loss of $450,000 is being incurred. However, if intervention occurs and managers can estimate the increase of output (to 60%) due to improved morale, then the increase can be calculated as $750,000 @ 60%=$450,000.00. The loss due to poor morale has decreased and is calculated by subtracting $450,000 from $750,000 = $300,000. The increase in morale is based on the judgement and evaluation by those who can monitor the performance of staff and provide the best estimate of the level of performance and the impact of intervention by talent acquisition management. The morale of new employees can be monitored for the plateauing of the learning curve and levels of motivation. The impact of positive intervention can be calculated and justified as part of the retention and motivation of new staff. It is useful for talent acquisition and management staff to be able to understand the language of accounting in order to support the investment by an organisation and in the intervention undertaking to ensure the retention and maximisation of newly acquired human capital and talent. While morale may be considered to be intangible, its effects can be observed and quantified as can most talent acquisition and management activities.

308

Bernard O’Meara

10.5.2. The Cost of Employing Staff with Different Educational Backgrounds Often there will be situations where line supervisors will want to employ staff that talent acquisition feel are unsuitable or vice versa and the cost/benefit of the different options can be estimated. This does not apply to individual staff but it applies to groups or clusters of potential staff. Lazear (1998) provides an example where the cost of employing school leavers is compared to the cost of employing college or university graduates. A baseline needs to be established in order to properly analyse the benefits and costs of employing each group. In the example, the average sales made by four high school graduates already employed is $1,475,000 while the average sales of six college or university graduates is $1,883,330. The hourly wage of the high school graduates is $6.82 while the hourly wage of university graduates in the organisation is $10.25. The ratio of graduate wages to school leavers is 1:50 meaning that university graduates earn 50% more that school graduates. The monthly average sales of graduates is $1,883,330/12 months = $156,944 per month. The monthly average sales of school leavers is $1,475,000/12 months = $122,917 per month. In order to achieve average monthly sales of $1,000,000 the organisation needs to employ a certain number of graduates calculated by $1,000,000/$156,944 = 6.372 college or university graduates. To calculate how many school leavers are needed to make an average of $1,000,000 per month the organisation will need $1,000,000/$122,917 = 8.136 school leavers. While university graduates are more productive they are also more costly to employ. However, if the cost between employing the two groups is calculated based on all individual staff working 176 hours per month, then the cost of employing 8.136 school leavers is 8.136 @ 176 hours per month @ $6.82 wage per hour = $9766. The cost of employing 6.372 university graduates is 6.372 @ 176 hours per month @ $10.25 = $11,495. While the graduates are more productive they also cost more. Therefore, talent acquisition staff will need to put forward an argument that employing more schoolers is more cost effective than employing graduates. However, the decision will not be made solely on cost and the organisation will need to determine the benefit of the individual human capital, talent and potential. These strategic considerations may outweigh the short-term cost benefit of employing school leavers. It may be agreed that a mix of both is better. Whatever

Recruitment and Selection Costs

309

the final decision, the decision will be informed by understanding all the information and considerations that impact the selection strategy. 10.5.3. Staff Separations Cascio and Boudreau (2011) note that each year the US company Wal-Mart recruits, hires and trains approximately 525,000 new employees to replace those who have left. This may not be uncommon for similar very large organisations throughout the world and the cost of replacing staff will run into tens or hundreds of millions of dollars each year. The cost of staff leaving an organisation can be just as high. It is better to reduce the number of staff leaving the organisation, as this will have a broad range of benefits including cost reduction. Investment in staff can reduce voluntary turnover rates and their associated costs, improve morale and enhance the retention of human capital, talent and potential. The turnover rate for an organisation is calculated as follows: (Number of staff leaving the organisation/average work force size) @ 100 This calculation can be used to determine weekly, monthly or annual turnover rates and the number of staff leaving the organisation can be aligned accordingly. The calculation can be used to differentiate between voluntary separations and involuntary separations where the organisation terminates a person’s employment. In most cases industry-based employer associations will produce turnover rates across the industry and these are calculated in the same way. As such, organisations can compare their turnover rates to similar organisations and industry-based levels. This can indicate the level of talent acquisition and management success and will also indicate the costs borne by an organisation when staff leave. Typical separation costs include: • • • •

Exit interview (time of interviewer) Administrative time to remove the employee’s details from active records Payment of accrued annual, sick and/or long service leave Payment of optional benefits, such as one or two week’s pay in addition to standard termination payments

Cascio and Boudreau (2011) use an example to highlight the cost of the first two points listed above. If an organisation has a staff of 1200 and it has a monthly turnover rate of 2% or 24% per annum, then 288 will leave each year. If the person conducting the exit interview took fifteen minutes to prepare for each termination and spent 45 minutes conducting the interview itself and was paid $30.00 per hour, then the cost of the exit interview would be: 1 hour @ $30.00 @ 288 staff terminations = $8,640.00

310

Bernard O’Meara

However, the cost of the departing employees needs to be calculated as well. If the full cost hourly rate is $25.42 and 288 staff leave, then the cost is: $25.42 @ 288 = $7320.96. Total exit interview cost = $8640.00 & $7320.96 = $15,960.96 To transfer the 288 employee records into an archive and cancel all relevant internal and external components may require another hour of the interviewer’s time. The administrative cost is: 1 hour @ $30.00 @ 288 = $8640.00 In many organisations they have a policy whereby staff leaving an organisation are given a week or two’s pay in addition to other payments. This rewards staff for loyalty and effort and helps ensure goodwill. If one week’s pay was given to each departing employee, the additional cost would be: $25.42 @ 40 hours (one week’s pay) @ 288 = $292,838.40 However, there is a raft of other intangible costs which can include: • • • • • • • • • • • •

Loss of productivity due to employee loss Lower morale of colleagues, subordinates and managers Potential damage to the corporate reputation Loss of section, team or department staff productivity Increased workloads for other staff Loss of human capital Loss of talent Loss of potential Potential loss of clients or client confidence Loss of corporate knowledge Missed timelines Loss of investment by the organisation in the employee

The cost impact of these hidden or intangible costs can still be measured using similar calculations already outlined. Spencer (1986) points out that when an employee decides to leave an organisation, the person’s productivity decreases until she or he actually leaves the organisation. This loss of productivity over that period of time can be measured and forms part of the separation costs to organisations. However, there is another multiplier that occurs when staff leave an organisation. As outlined in the points noted above, when a person leaves an organisation there is an impact (potentially negative) on the organisation, its clients, its staff and its operations. Another multiplier comes into play when a person leaves their job. If the person is not employed by another organisation, then the tax they would usually pay is not

Recruitment and Selection Costs

311

passed on. If the person is the single income generator of a family with two young children, then the effects include changes to: • • • • • •

Spending patterns Hospital and Health Benefits insurance Travel patterns Repairing white goods instead of buying new ones Downsizing cars to more efficient vehicles that are less expensive to run The non-renewal of subscriptions

People will spend less in order to meet the challenges of daily living. Children may change from attending a private school to a government school where fees are far cheaper. Those shops and retailers that depend on regular spending will derive less income and this in turn will impact upon their operations, their staff and their viability. Thus, each unemployed person can strain the welfare system and their local community. A decline in one system can lead to a decline in other interrelated and interdependent systems. However, when examining separation costs it is common to include the costs of replacing the person who has left. As discussed previously these costs can include the following: • Advertising or costs associated with telling suitable candidates that the job is vacant • Job analysis, job enlargement and job enrichment • Pre-employment preparation by organisational staff • One, two or more interviews • The cost of one-on-one or panel interviews • Testing and/or assessment centres • Time spent by staff discussing the position and determining selection criteria and question techniques • Relocation expenses where necessary • Medical examinations • Induction costs • Mentoring costs • Formal training • Gradually increasing learning curve • Administrative costs • Use of consultants • Time spent reference checking • Time spent monitoring the socialisation of new staff • Time spent reviewing new staff performance Cascio and Boudreau (2011) list some of the above points as being included in the cost of employing new staff in addition to their full cost value. The previous examples of costing illustrate the true cost of selection, employment and termination

312

Bernard O’Meara

of employment. Talent acquisition is a critical role within an organisation and the claim that the full cost of replacing staff may be five times annual salary is easier to understand. Hence, organisations invest in talent acquisition because it provides the lifeblood of the organisation. Talent acquisition staff are charged with determining the use of substantial amounts of organisational funding by committing the organisation to employing certain applicants and not others. Where staff remain with the organisation for several years, then talent acquisition staff have committed organisational resources for all this period of time. It pays to get it right the first time and organisations spend a great deal of time and money employing the right talent acquisition staff with excellent judgement. It is little wonder that it is quite common for potential senior organisational managers to spend time in such functions as part of their development.

10.6.

The Cost of Getting it Wrong

In 1986, Spencer (p. 123) calculated the full cost (salary @ multiplier of 3) of turnover of a professional or managerial person. He estimated the exit cost to be 20% of full cost, the hiring of the new staff to be 30% of the direct (not full cost) salary cost and the learning curve of the new staff member to be 50% of the full cost. The salary of the job is $100,000.00 The full cost of the job is $300,000.00 (base salary @ multiplier of 3) Exit costs = 20% of full cost (20% 0f $300,000.00)=$60,000 Selection costs = 30% of direct labour cost (30% of $100,000.00)=$30,000 Learning curve allowance = 50% of full cost (30% of $300,000)=$150,000 Total cost = exit costs & selection costs & learning curve allowance Total cost = $60,000 & $30,000 & $150,000 = $240,000 Salary/total cost = $240,000/$100,000 = 2.4 times salary Given the investment organisations make in staff and the inclusion of assessment centres, intense socialisation practices, the detailed construct of induction processes, mentoring, supplying internal social network access, the use of consultants and psychologists and cafeteria style salaries and benefits, then the value of 2.4 times annual gross salary is extremely conservative. This is especially the case where there is intense competition for human capital, talent and potential. The above calculation does not take into consideration the impact on morale within the organisation, the uneven redistribution of the former employee’s workload, missed timelines and even the potential loss of client business in some cases. It does not include consideration of the value of the knowledge and contacts that the person takes with them. Where large organisations have a significant amount of staff turnover, effective talent acquisition can save tens of millions of dollars or more each year. It can

Recruitment and Selection Costs

313

improve productivity and the outcomes of induction and training, improve morale and help retain talent and human capital. A fully costed business case can be crafted, showing how talent acquisition and talent management have major impacts on any organisation. It can be shown that they are crucial to setting and achieving desired organisational strategies. If people are the greatest asset of an organisation, then the people who find new staff are central to organisational success. Spencer (1986, pp. 124 125) illustrates the costs associated with poorly performing staff. These people may have been placed in the wrong job or are not sufficiently motivated to continue in the role. There may be other reasons for poor performance that remain unknown if the talent management staff are not monitoring the staff member and intervening with an Employee Assistance Programme. The example is set out below: The full cost of the employee is (base salary of $20,000 @ multiplier of 3)=$60,000 The full cost of the person’s manager is (base salary of $40,000 @ multiplier of 3)= $120,000 The full cost of talent acquisition staff is (base salary of $30,000 @ multiplier of 3)= $90,000 The amount of productivity estimated is 20%. The loss of 80% productivity is $60,000 @ 20% =$12,000. $60,000 − 12,000 = $48,000. If the manager spends 8 hours with the person trying to help her or him the additional cost is: 8 hours/40 hour week = 20%. The dollar cost of the 8 hours spent with the person is $120,000 @ 20%=$24,000. If talent management staff spend 5 hours with, then the employee the additional cost is: 5 hours/40 hours per week = 13%. The dollar cost of the 5 hours spent with the person is $90,000 @ 13%=$11,250. If the morale of 8 other team members declines to 75% the additional cost is: Full productivity is $60,000 @ 8 = $480,000. 75% productivity $480,000 @ 75%= $360,000. The lost 25% value is $480,000 − 360,000 = $120,000. The total cost to the organisation is: $48,000 & $24,000 & $11,250 & $120,000 = $203,250.00 This amount does not include the cost of hiring new staff but assumes that after one year the employee leaves the organisation. If talent acquisition staff intervened

314

Bernard O’Meara

and were able to offset this decline, then the person may return to high levels of commitment and engagement and, therefore to higher levels of productivity as would his or her colleagues. The impact of talent activities is measurable. The cost of employing the wrong staff is substantial and increased as competition for talent increases.

10.7.

The Benefits of a Talent Development Programme

Haskins and Shaffer (2010, p. 13) argue that ‘talent building should be business driven, future focused, integrated and deliver measurable results’. This reinforces the arguments used earlier in this chapter that talent acquisition and management can be business driven and the outcomes are measurable. They argue that the talent development framework should ensure staff understand the ‘will’ of the business. By this they mean that they should understand and contribute to the business strategy, goals, issues, opportunities, challenges, values and culture of the organisation. However, an organisation must introspectively determine what the ‘will of the organisation’ will compose of. The talent acquisition and development strategies need to target potential staff who will add value to this process and ensure the desired outcomes are achieved. The organisation needs to develop a vision that it can share with existing and new staff, and develop them accordingly. In order to help one particular large client Haskins and Shaffer (2010) developed a series of questions to draw out the context of the organisation. Apart from analysing the market, competition and the future of the industry Haskins and Shaffer (2010, pp. 14 15) connect the drivers of the organisation with the talent development programme and organisational outcomes. These questions place talent acquisition and development at the heart of organisational success. 1. Global perspectives: • How are global economic and political changes likely to impact our core business? • What do our business leaders need to know to operate knowledgeably and ethically in a rapidly integrating world? 2. Competitive advantage • What are the competencies on which we plan to build a competitive advantage? What are we doing to invest in them? • How effectively are we utilizing our talent and knowledge across the enterprise? What keeps our talent and knowledge from becoming ‘more mobile’ across the organization? 3. Economic value creation and metrics • Do our people have a clear understanding of how economic value is created? • Metrics galvanize behaviour. How can we best align and assess the impact our metrics have on our people and organization?

Recruitment and Selection Costs

315

5. Culture • Do we have the right processes and resources in place to manage the transfer of knowledge from departing colleagues, and the learning of younger generations? • What culture(s) should we aspire to create and how can we best develop it (them)? Will greater collaboration across business units, increased knowledge sharing, and more innovation be required and what steps might enable that? 6. Leadership • How well does our current leadership energize our work force? Do we have an abundance of new ideas and a pipeline of leaders to execute them? • Identify the top five key, future-focused leadership attributes which are ‘mandatory’ for future success. How well are we performing on these competencies now? How will we close the gap from where we are to where we need to be? The questions posed by Haskins and Shaffer (2010) should be considered by any strategically based organisation wishing to address the challenges of the future. However, as demonstrated by these questions, the overwhelming focus of business success resides in the people the organisations employs and how these staff are engaged and developed. The role of metrics and measures discussed in the earlier parts of this chapter help an organisation understand the importance of talent acquisition, management and development. The business case for effective talent acquisition can be made based on measures already outlined, but these help the stakeholders of an organisation understand the interdependence of the organisation and its staff. It is also useful for talent acquisition staff to track their costs and budgets so that they are reminded of how much organisation funding they are able to allocate and the need to constantly improve internal performance and to monitor and evaluate their effectiveness. It is easy to forget, at times, that culture, values, knowledge acquisition and retention, which lead to success in business, are functions of talent acquisition. Executive talent is sourced by talent acquisition staff, who must be able to answer the questions posed above, so they know the executive competencies that will be needed in ten, fifteen or twenty years’ time. This is a core strategic function of an organisation. Haskins and Shaffer (2010) note that research suggests that carefully planned job experiences are extremely powerful ways of developing critical leadership attributes needed for the future. Thus, there is a clear link between talent acquisition and the development and management of new staff. They flow into each other and are not isolated activities. To develop core human capital, it is first necessary to know what this is composed of before potential candidates can be identified. The identification of talent acquisition and people management as critical to an organisation’s performance is also supported by the research of Teo, Lakhani,

316

Bernard O’Meara

Brown, and Malmi (2008). Their research focused on two international professional service firms that use knowledge and information as their source of competitive advantage. Such organisations depend entirely on the mental functions of partners and staff as they are employed to solve complex problems through the development of creative and innovative solutions. Knowledge-based organisations do not depend on the physical prowess of staff but engage their intellectual capacity to resolve issues for clients. While the research was limited, the findings suggested that it was the strategic approach of HRM staff that allowed these organisations to compete successfully. The talent acquisition staff would seek candidates with intellectual capital and it was the ability of these staff to understand the business that allowed them to effectively attract a pool of suitably qualified applicants. The practical implications of their research is that it provides empirical evidence that by engaging human resource-based staff in strategic decision making and allowing them to positively impact the culture of the organisation, higher levels of performance can be achieved.

10.8.

Human Resource Accounting (HRA)

Bassey and Tapang (2012) also acknowledge that human resource accounting is becoming more popular, but also necessary, if organisations are to make informed decisions regarding talent acquisition and development. They argue that the profitability, productivity, solvency and efficiency of an organisation reflect the contribution of talent acquisition staff who identify the talent and human capital to achieve these. The investment in human capital determines the performance of the organisation and human capital, therefore, is an asset. Unlike other organisational assets, for human capital to be optimised the organisation needs to have the cooperation and commitment of the staff involved. It also means that to achieve optimum outcomes the organisation, via talent acquisition and development, needs to determine how access to human capital is arranged. Bassey and Tapang (2012) rightly point out that where staff need organisationspecific knowledge and skill, the more likely is the organisation is to create an internal labour market. In the service and retail sectors, this can mean that the majority of new staff commence employment in entry level positions and work their way up the hierarchy over time. Alternatively, organisations that do not need organisationspecific skill and knowledge may find that efficiencies can be made by competing for talent in external labour markets. The decision to create an internal labour market or to source talent external to the organisation is a major strategic determination and the decision can have a major impact on the organisation’s financial capital. The authors argue that organisations should, as a matter of course, create a ‘Statement of Human Resource Costs’ to be attached to other financial reports.

Recruitment and Selection Costs

317

They argue that goodwill can be calculated and that accountants are becoming more familiar with the complex calculation of human resource capital assets and costs. As such, HRA should be included in both internal and external reporting to illustrate the true value of human capital. They also argue that international accounting and financial bodies such as the Generally Accepted Accounting Principles (GAAP), CPA regulatory bodies and the International Accounting Standards Board (IASB) should hasten the need to include HRA in their reporting requirement. The second point they make is that organisations need to focus on all assets, costs and reporting documents. The tangible cost and asset bases are usually covered in depth but the intangible side that actually drives the organisation is not recognised to any great extent in such accounting and financial reports. An effective talent acquisition and development team could construct these measures and provide them as required by stakeholders. This treats talent acquisition as any other business function that impacts upon performance. Similarly, Steen, Welch, and McCormack (2011) suggest that organisations have been put under pressure to provide accurate financial information to shareholders and stakeholders. The need to provide information regarding corporate social responsibility and the incorporation of intellectual capital into intellectual property (along with patents and trademarks) reporting, are recent examples of this pressure. They also note that such reporting has benefited organisations seeking to acquire other organisations to access their human capital. This provides predatory organisations with a sufficient level of information to decide on a merger or acquisition based on tangible and/or intangible rationales. However, they point out that accounting and economics are based on measurement. Thus, as HRA has developed in importance, the measurement of human capital becomes complex but necessary. HRA allows all aspects of an organisation to be accurately reported alongside tangible costs and assets as well as intangibles such as goodwill. Steen et al. (2011, p. 305) define goodwill as ‘… the value ascribed to intangible assets including reputation, a well-trained workforce, good contacts within the industry, favourable business location, and other unique features of the company for which another company would pay a premium over the net assets (or fair value of net assets) reported in financial statement’. This definition does not exclude human capital but allows for it to be included with other items of goodwill. However, it is reasonable to say that although strategic-based organisations have informally recognised and valued the contribution of staff, organisations have been reluctant to announce externally the value of that contribution, particularly to competitors. Each individual within an organisation has some level of human capital that, when exercised by the individual(s), benefits the organisation. Thus a definition of human capital needs to encapsulate the human capital, and potential human capital, of each individual, as well as the organisation as a whole. Hence, the complexity of measuring human capital in a large organisation like Wal-Mart mentioned earlier.

318

Bernard O’Meara

If 5,25,000 people leave the organisation each year, the cost of lost human capital would be enormous and an organisation like this would lose tacit knowledge and rely on systems, procedures, policies and the knowledge of other staff who do not leave, to preserve as much organisational knowledge as possible. With an average learning curve of a year or more, it may be impossible for new staff to learn what they need to learn and make an effective contribution in less than one or two years. This is not uncommon for such organisations to have staff turnover levels each year. However, new staff need time to undertake the process of learning in order to acquire its outcome — knowledge. In this example it would be extremely complex to calculate the lost knowledge and human capital of staff who leave each year and the cost of calculating this cost may, itself, be prohibitive of successfully costing this loss. Steen et al. (2011) suggest that it is beneficial if organisations of all sizes know the value and cost of individual and collective human capital. While less strategicbased organisations may not concern themselves with determining the cost and value of intangible assets, the more strategic organisations will want to determine this cost and value. The cost of induction and customised training programmes for staff can be fully costed, and an evaluation of the knowledge acquired as a result of learning can also be costed. The contribution of individual’s human capital can also be costed accordingly. If organisations undertake a stocktake of talent each year by evaluating those with individualised career maps and those on succession plans, they will be identifying human capital. However, the conduct of the VRIO will identify critical staff with unique human capital within the organisation. These reviews identify the organisation’s core human capital. Once this process has been completed, the contribution of key staff can be quantified and measured. This creates a talent and human capital bank. As people leave the organisation, the deficit can be identified and costed, while additions to the asset bank can be made when new staff are employed. While a rolling measure of talent, potential and human capital can be identified and measured, this can be used as a baseline against which human capital additions and deletions can be made on an individual basis. New staff will add to the bank while those leaving the organisation will create a deficit which needs to be filled. In this way, an overview of human capital can be maintained and monitoring can ensure a balance is achieved between those leaving the organisation and those joining the organisation and bringing new human capital to it. The amount of human capital needs to be identified and changes to it monitored and evaluated. As this is taking place, the impact of those leaving the organisation can be monitored and offset by the increase in human capital via strategic talent acquisition. The movement in and out of the talent bank can be monitored by talent acquisition staff and deficiencies offset via talent acquisition. Organisational diagnostics can be used to identify and rectify ongoing problems.

Recruitment and Selection Costs

319

The VRIO, stocktake of talent and the review of human capital identifies the key strengths of an organisation as well as any shortfalls. By quantifying the investment in human capital and talent the organisation can identify core staff and critical human capital it needs to protect. Alternatively, if a key member of staff is due to retire in the next few years, then the organisation can place new staff with the person to learn from them and replicate their knowledge. This is a strategic component of talent acquisition, development and management. As a person joins an organisation, she or he moves from one system or subsystem to another. As their talent is developed, it adds value to them and, in turn, makes them more valuable to the organisation. The organisation recognises this change between systems and sub-systems through experiential learning, developmental opportunities, promotion, increased responsibilities and authority and salary increases. Once new staff settle into their jobs and contribute more to their organisation, they also increase their expenditure in the community by buying a new car, travelling or buying more goods and services. Their contribution to the social system increases, and the flow on effect means that other businesses and organisations can flourish. A change in systems within an organisation or external to it is signified through growth, contribution and a reward for effort and valuable human capital.

10.9.

Creating a Business Case for Talent Acquisition

A business case can be constructed that shows the quantifiable contribution that talent acquisition makes to profit, cost containment or other desired organisational outcomes. If an organisation understands the importance of talent acquisition, an argument can be developed that investment in talent and its acquisition is beneficial for the organisation. A business case involves an argument attempting to justify investment in a proposal. In this case, an argument has been developed that illustrates that strategic talent acquisition is essential for business growth and development. Talent acquisition can provide an organisation with a sustainable competitive advantage. Avazzadehfath and Raiashekar (2011) argue that when HRA can provide a powerful tool for management upon which they can make decisions. They also argue that the measures from HRA can be used to illustrate the direct link between investment in the organisation’s human capital and its long-term profitability. Thus, an argument justifying the investment in existing and new staff needs to show measures and costs that support the argument. Talent acquisition has, at times, been viewed as ‘soft’ management as distinct to ‘hard’ management which is measurable. However, with the development of HRA costing and asset valuation, the need for effective talent acquisition can be put forward as a major contributor to asset

320

Bernard O’Meara

management, profit, cost containment, business growth and other desired business outcomes. This ensures that the role and purpose of talent acquisition is both understood and valued. It can be considered a strategic function along with all other parts of an organisation. The impact of talent acquisition cannot be overstated. Where talent acquisition acts as an internal consultancy, the costs can easily be traced and justified. In any case, the role can be justified. Over time, HRA will develop and investment in human capital should become a common feature of internal and external reporting. In many instances, the talent acquisition budget is based on the previous year’s budget, plus a 10% allowance for increased and hidden costs. However, the budget needs to include allowance for relocation costs, advertising by a variety of media, the conduct of assessment centres and testing as well as allowing for training and the duration of learning curves. A budget including a 10% increase is no budget at all. A talent acquisition budget needs to be comprehensively calculated and justified. When constructing such a budget for the first time, an allowance for a 10% increase may be acceptable. However, from that point on a proper and justifiable budget needs to be created.

10.10.

Summary

This chapter has discussed the costs associated with talent acquisition. Talent acquisition is a very strategic oriented form of management. However, there are costs associated with talent acquisition, yet once it is achieved it becomes a major asset of the organisation. However, for talent acquisition to be viewed as a serious part of business, it needs to be accountable for expenditure and its responsibility to the organisation. Because of its critical business role, organisations place their best staff in talent acquisition and rely on their judgement, decision-making and interpersonal competencies. Functional departments such as PM were traditionally viewed as middle management cost centres. In this sense, they were viewed as a necessary expense that needed to be minimised. They were not viewed as profit centres because they did not generate any income. All facets of an organisation are held accountable and talent acquisition is no exception. One option that many organisations have employed is to construct the talent acquisition function as an internal consultancy. In this case, it is easy to track costs associated with talent acquisition and to monitor the impact of new staff appointments. In this way, staff who become valuable organisational assets can be monitored and evaluated and more importantly linked to the efforts of talent acquisition staff. Internal talent acquisition consultancies, in effect, become standalone businesses controlling their own costs and revenue generation as an external consultancy

Recruitment and Selection Costs

321

would. They take control of budgets, costs structures, sourcing strategies, client interaction, advertising and determining the most appropriate staff to undertake talent acquisition. An introduction to fundamental processes such as ROI, full cost of employment and activity-based costing methods were outlined and examples given on how these various processes can be used to determine the full cost of talent acquisition was given. The examples given illustrated how intangibles such as morale, training and a change in talent acquisition strategy can be fully costed along with deciding to employee university or college students compared to school graduates. Examples of how IBM and the Royal Dutch/Shell Group were given to support the idea of talent acquisition being used as an internal consultancy. Both these changes were effective in transforming their respective organisation although the key change was to talent acquisition — other business sectors benefit as well. In discussing the investment in human capital by an organisation it was shown that this is linked to desired organisational performance. Talent acquisition provides the drivers of success as it forms the link between people, performance and profit or other desired outcomes. Without staff, organisations are inert and cannot transform goods or services into desired outcomes such as profit. Talent acquisition needs to add value to the organisation’s human capital and talent. However, it is mainly people who add value to their organisation and who become more valued to the organisation as a consequence. Investment in staff is an investment in the future of the organisation. An outline of ROI, full costing and asset valuation were given to show that intangibles such as effort and morale can be costed. These are typical features of many organisations and talent acquisition staff can use these processes to establish their credibility and the major impact they have on an organisation. The distinction between direct and indirect costs was outlined as were many other examples. These examples show how talent acquisition can be costed and once a baseline a baseline is established future costs can be used as a comparison. A reasonable overview of the learning curve is provided and reasons are given as to why the learning curve is important to an organisation and not just to its cost structure. An example was given to calculate the cost of learning and how changes to talent strategy and increasing the training and education of staff can reduce the costs associated with a slowing rising learning curve. An example was given where the decision to employ college graduates was compared to school leavers to show the cost implications involved in making such decisions. While the purpose of the chapter was to introduce costing and asset valuation techniques, it was also pointed out that talent acquisition staff should be able to calculate and measure their costs, impacts and the appointment of assets. There is a cost of employing the wrong staff in terms of productivity, morale and effects on other colleagues. It was also shown how organisations can calculate how the cost of selection can be, say, 2.4, 4 or 5 times annual gross salary of the role being filled.

322

Bernard O’Meara

The benefits of aligning a talent acquisition strategy with a talent development programme were also discussed. Talent acquisition staff need to have input in to the development and management of new staff and to have contingency intervention strategies in place if a person’s motivation and learning curve plateau. HRA was also discussed and how it is necessary in strategic oriented organisations. However, it was noted that traditional accounting practices are steeped in measurement and HRA is now seen as something that all organisations report with their asset registers and human capital development and management. Finally, it was suggested that a business case can be constructed and supported by fully costed practices, so that a ‘hard’ business was created rather than the ‘soft’ view often associated with talent acquisition.

10.11. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Review Questions

What is an internal consultancy? What is return on investment (ROI)? What is the full cost of talent acquisition? Can all talent acquisition costs be calculated? What is a learning curve? How can the cost of the learning curve be calculated? What are the costs of employing the wrong staff? What is a turnover rate? What are typical costs associated with staff separation? Why is the calculation of human capital of benefit to an organisation? What is a learning curve? What are the costs associated with a learning curve? What is human resource accounting (HRA)? What are the benefits of a talent development programme? Can a business plan for talent acquisition be created?

10.12.

Learning Activities

1. Identify an organisation with which are familiar. Ask them if they calculate the full cost of employing new staff. What is the multiplier rate they use? 2. Do they calculate the full cost of staff leaving the organisation? 3. Do they calculate the organisation’s investment in human capital? How do they do this? If they do not calculate this, why do they not do this?

Chapter 11

Continual Improvement: The Kaizen Requirement Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • • • • • •

Understand the advantages of a systems approach to talent acquisition Appreciate the use of feedback loops Be able to evaluate the person/job fit Be able to evaluate the person/organisation fit Appreciate the use of information systems Be able to implement a continual improvement approach

11.1.

Introduction

Once the new employee has commenced work and is underway with the induction program, it is time to review parts of the systems and strategic components of talent acquisition. The systems approach gives an insight into different systems and subsystems that people are a part of in the workplace and in the community. Each person has a unique position in these and it is through an understanding of the systems that a person is a part of, that talent acquisition staff understand the new employee and the different forces that have equipped them with the human capital and talent they possess. This approach recognises the different roles a person can play in her or his life and understands the interrelatedness of these different roles. As a person moves from being unemployed to employed, their spending capacity increases. As people increase in human capital, they are rewarded by promotion, salary increase and/or increases in responsibility and authority. As a person’s status within

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

324

Bernard O’Meara

a system changes or when a person is included in another system or sub-system, there is usually some recognition. When a person finishes high school or university, his or her status within the system of education changes. He or she becomes a graduate and this is another system the person now belongs to. Throughout their lives, people move between systems and sub-systems without even knowing it. When a person is employed by an organisation he or she becomes a part of that system as well and the same occurs when a person leaves one employer to join another. In the case of employment, a person can move through the induction phase onto full employment as she or he develops their human capital and talent. As outlined in previous chapters, strategically based organisations will monitor progress and intervene if necessary to assist new staff. The focus in this text requires both a systems and strategic approach in order for talent acquisition to have maximum effect. The other component outlined in the first few chapters was that there was also a requirement for the approach to be continually improved. This is the continual improvement perspective. The term Kaizen is taken from the Japanese language and means continual improvement. A static system runs the risk of becoming outdated quickly, hence a built in kaizen requirement means that the approach needs to be continually updated and improved so the best possible applicants are selected. This creates a dynamic environment where outcomes can be continually evaluated and improvements determined. A standard approach to talent acquisition need not be reviewed unless the new staff who are appointed fail to realise expectations. A continual improvement approach also means reviewing ways to use technology in the hunt for talent and in attracting the right applicants. Along with technology, staff skills can be regularly reviewed and updated so they provide the organisation with their own best effort. Each aspect of talent acquisition can be reviewed and updated where appropriate. This can also include organisational structure, communications, the impact of competition, declining markets, induction and retention strategies.

11.2.

List of Expectations Revisited

At the start of a talent or knowledge acquisition strategy, it is usual for the selectors to list out their selection criteria in two ways. The first is the minimum requirements considered necessary or the ‘must-have’ hurdle. The second aspect consists of ideal criteria that the organisation would value if an applicant possessed them. These include human capital and forms of talent and potential. However, those organisations using a strategic and systems-based approach may wish to gain feedback on all aspects of the approach. A list of expectations can be created prior to the commencement of recruitment and selection and compared to the actual outcomes achieved.

Continual Improvement: The Kaizen Requirement

325

Each time the organisation seeks new staff it will generally determine more than just selection criteria. This list of expectations can include the following: • • • • •

A sufficiently qualified applicant pool A short-list of candidates who all meet the minimum selection criteria Applicants with human capital or potential to add value to the organisation Keeping within budget Keeping within timelines

As more information is gathered and reviewed, the data can be compared to previous selection approaches that can be used as a benchmark. In this way, having established a baseline, further attempts can be compared to this to determine how effective the selection campaign has been. Much of the data is reported through the feedback loops that allow selectors to measure just how successful the most recent attempt at selection has been. This evaluation answers the key questions such as: • Did we achieve what we set out to achieve? • How close a fit can we get between the successful applicant and the job/ organisation? • Did the appointment of a new staff member add-value to the organisation. It is just as important to ask if the organisation can add-value to those newly appointed staff via, education, experiential learning opportunities and such. While these questions are fundamental, at times it is common for organisations either not to appoint a person at all or to appoint a person who is far from being an ideal applicant. This occurs when an organisation needs to fill a position quickly and is prepared to appoint a person to do the basic part of a job. This can happen when a person resigns suddenly and unexpectedly or is taken ill or leaves the organisation for reasons beyond the scope of the organisation and, in some cases, beyond the scope of the person. An example of this is where a person leaves an organisation and moves to another city to look after elderly or sick family members. The answer to the first question may be ‘No we did not achieve what we set out to achieve.’ In this case an investigation can be undertaken to determine why the selection of new staff was not optimum. The answers can come from the feedback loops and the responses form part of the Kaizen or continual improvement of the selection system. The fit between the person and the job/organisation may not be ideal and an analysis of the reasons for this needs to be investigated. Again the question of why this did not occur can come from the feedback loops and the answers fed into the continual improvement system. If the answer to the third question is ‘no’, then further analysis needs to be undertaken. If a person is appointed but she or he does not add value to the organisation, then, at some stage, someone made the decision that this was an acceptable outcome.

326

Bernard O’Meara

When this decision was made then the selectors should have pointed out to the decision-maker the consequences of that decision. If the requirements of the job were extremely specific and it was known that a suitable applicant could not be found locally then the decision could have been made to acquire potential rather than competence and knowledge. In some cases, when organisations find that the talent and potential it seeks is not available at locally, it will seek government approval to look for candidates internationally. Alternatively, those organisations monitoring demographics and industry changes may decide to relocate the organisation interstate or overseas, where it will have a much better chance of finding the right staff. Over time a more in-depth list of expectations can be compared to actual outcomes. These include the following: • • • • • • • • • • • •

Did the new appointee need more or less induction time than anticipated? Did they engage other staff as expected? Did they require more or less training than expected? Was their standard of quality greater or less than expected? Was their work-based timeliness greater or less than expected? Did the potential identified during selection come to fruition as expected? Was the person’s learning curve as expected? Did they add value to the organisation? Was the new appointee able to be developed as expected? Could a person with greater potential or human capital have been appointed? How long did the person stay with the organisation? Could more appropriate sourcing techniques have been used?

Each time an organisation seeks to appoint new staff, it needs to set out the selection criteria, create a list of expectations and answer the three questions just outlined. This helps ensure that selectors are continually seeking ways to improve their performance and appoint the right applicants that the organisation needs. In this case, the selectors create a list of their expectations of a successful applicant and then compare these expectations (the list of questions above) to actual outcomes. This gives feedback regarding the ability of the selectors to correctly gain relevant information upon which to make an informed decision. Did they get it right?

11.3.

Feedback Loops

As mentioned in Chapter 2, there are benefits to viewing an organisation as a dynamic system. An organisation system can grow or contract, change direction, develop its internal strengths or be consumed by another organisation system via mergers and takeovers. An organisation system also has interdependent and interrelated sub-systems such as culture and sub-cultures, communications, hierarchy, departments, sections

Continual Improvement: The Kaizen Requirement

327

and teams. Large and complex systems like organisations are dynamic because they change and are subject to both internal and external forces that shape them. They respond to their internal and external environments. Organisations interact with other organisations (systems) through supplier and client relationships, but they also interact with the immediate, broader and global communities, governments as well as health and education providers. Because complex systems like organisations are dynamic, it is possible to determine the performance of the systems — how well they interact with other systems as well as the performance of individual system components. One of the major exchange processes between organisations and the community is the acquisition of talent or knowledge. These performance factors are measured in the form of feedback loops that indicate how well the system is working. Feedback loops provide information about the effectiveness of a system. As Kampmann (2012, p. 371) states, ‘The method of system dynamics has relied extensively on feedback loops to explain how system structure leads to patterns of behaviour.’ He also points out that the more complex the system, the more feedback loops will exist. While an organisation is a complex system, only feedback loops relevant to talent acquisition will be discussed. Nielsen and Nielsen (2012) argue that feedback loops provide organisations with both learning opportunities and more informed decision-making opportunities. However they also advocate the use of the Balanced Scorecard (BSC). The BSC identifies 4 6 issues related to strategy which if monitored, measured and managed successfully should provide the organisation with superior performance (Viljoen & Dann, 2000). Nielsen and Nielsen (2012) use an example to illustrate the role of BSC, whereby feedback from customers and suppliers is analysed and the measures are used to inform strategy. The outcomes of strategy are used to analyse the performance of the strategy and a learning loop is created accordingly. The BSC method is then used to help develop operational planning, decisionmaking and the resource planning system of the organisation. A small change in one element can be tracked and its impact on other aspects of the organisation determined. The use of financial measures alone is less effective than using both financial measures and non-financial methods in measuring performance and affecting change as these ‘better capture the value-creating process…’ (Nielsen & Nielsen, 2012, p. 438). The most important part of BSC is determining what to measure and how. This union of BSC, strategy, measuring, learning and informing decision-making fits the outline used in this text. The feedback loops provide an opportunity to learn and improve performance of talent acquisition in meeting the strategic needs of the organisation. Systems theory is complex and a full overview of this theory is not necessary in the current context. However, Kampmann (2012) also points out that some feedback loops are more important than others. An example of this is when a talent acquisition manager interviews and appoints people from a particular school or college, but finds they only stay for 3 6 months

328

Bernard O’Meara

and then leave. The feedback suggests the interaction between the two systems, the organisation and school or college, is not providing long-term staff — it is inefficient. The cause of this problem can be investigated and hopefully resolved. However, this investigation may simply show that the school or college does not have a strong focus on the skills or knowledge that the organisation is seeking. The manager then has two choices. The first is to work with the school or college to help their staff prepare their students with the skills and knowledge the organisation is seeking. This may lead to more school and college leavers joining this organisation and staying for a longer period of time. It does indicate that the communication between the organisation and the school or college was also ineffective. The second choice is to find another school or college that provides its students with the skills and knowledge necessary to successfully join the organisation. The feedback loop identifies the problem that the manager needed to resolve in order to attract and appoint suitably qualified staff who would stay with the organisation. In very basic terms, the outputs (students) from the school or college are not as adequate as the inputs (appointable staff) to the organisation. The feedback loop information can help identify strengths and weaknesses of inputs (potential new staff and their sources), the processes used to appoint new staff, those using the processes and other internal and external deterrents to effective selection.

11.4.

Inputs

In terms of recruitment and selection the inputs are candidates for jobs. However, if new staff require greater induction or training time than anticipated, this can indicate that the wrong people are being sourced. Also, new staff may not stay as long as anticipate, thereby indicating one or more problems with the transfer of applicants from one system to that of the organisation. A demographic analysis may show that the right people are in the area being targeted by the organisation but are not applying for vacant positions. Thus, in analysing the success of selection, a number of aspects need to be answered: • Did we target the right audience? • Did we attract a sufficient number of suitably qualified applicants? • What part of the community (competitors, unemployed, sourced by consultants, staff referrals) did applicants come from? • Were there any surprises regarding the number of applicants, the quality of applicants or where they came from? • Are there new sources of candidates not previously explored? • Did a demographic analysis help identify potential applicants? • Did we add human capital to the organisation? • Did we help the organisation in achieving future strategies?

Continual Improvement: The Kaizen Requirement

329

• Did we keep within budget? • Did we keep within timelines? • Was the use of testing or assessment centres beneficial? A thorough analysis can aid in future searches for staff and the questions outlined above are indicative only and will vary between organisations. The questions do require an internal evaluation of performance that should take place after each attempt to source new staff.

11.5.

Processes

There are a number of processes that are used in sourcing staff and these processes and their use also need to be evaluated. An evaluation may identify that the current practices are already optimum or they may show that there are deficiencies in them. An example of this is where an organisation only uses conventional forms of media to source staff, such as newspapers, and fails to realise the potential of social media and other more contemporary forms of sourcing staff. The processes to evaluate include the following: • Job analysis and the determination of selection criteria and the long-term needs of the organisation • Interview types • Decision-making regarding applicants’ suitability • Potential interviewer bias • Determining who will interview applicants • Communication to existing staff and management • Communication to external sources that a vacancy exists • Communicating to applicants the selection process and timelines • Did the questions used elicit the information required? • If the selectors list of expectations was met? • Were line managers and supervisors regularly updated and informed of progress? • If communication with sources of new staff, such as colleges, universities, consultants was strong and they understood what would be required of the successful applicant? • Were those responsible for induction, training and administrative functions made aware of a new person starting? • Was paperwork forwarded to the successful applicant for completion prior to attending induction? • Were mentors arranged and involved prior to the person commencing with the organisation? An evaluation of the processes can indicate if one or more are inefficient. Communication is a major process as it involves all stakeholders impacted by

330

Bernard O’Meara

sourcing new staff. The communication commences once a vacancy occurs or is anticipated and continues well beyond the commencement of a new staff member. Effective communication ensures that line managers can provide selectors with a clear and accurate view of what the new appointee will be expected to undertake. It ensures that selectors understand this and can target the right person with the necessary human capital and potential. Where colleges, schools and universities are used to source new staff, it is necessary for people in these institutions to understand the selection criteria so they can nominate those considered suitable for the job. If an accounting firm is seeking to employ a graduate, then if contact is made with a university the academics will need to know the nature of the position: is it a cost accounting role, is it a financial accounting role, is it an auditing role or is it an insolvency role the person will undertake? It would be less than ideal for academics to inform their students of a vacancy in accounting with an organisation without knowing the nature of the role and which of their students would be best suited to it.

11.6.

Those Using the Processes

The people using the selection process include selectors, managers, supervisors, consultants, mentors, peers the new employee will work with, payroll, administration and those who are responsible for induction and training. However, recruitment is through other organisations, such as education providers, or where new staff are sourced from declining competitors, various people from the organisations use the process as well. The staff responsible for web sites and social media usage and creation may also use the processes as they upload all necessary information. An organisation may use advertising or communication consultants and these people also become part of selection and must understand what information is needed to be conveyed to the community or a targeted audience. Existing staff, who will work with the new employee, will need to understand their role in selection and how best to engage the successful applicant and help the person integrate into the workplace. These people are all part of the selection process and each need to understand the overall selection process and how they can effectively contribute. These people need to communicate properly and will need to be coordinated by the selectors. In each case, an outline of the selection process, selection criteria and potential and the desirable outcomes can be provided in the form of a plan and distributed electronically and/or in hardcopy. The document should also include a budget estimate and timelines so that each person involved in the selection process understands what will happen, why and when. Lastly, the plan should outline the agreed role that each person will have and when and where they will need to be to fulfil their role. This process actually

Continual Improvement: The Kaizen Requirement

331

commences when the vacancy occurs, if not prior to it, and continues beyond the appointment of a successful applicant. The coordination of a potentially large number of people in the selection process is time consuming but necessary. Hence the plan needs to be devised once the decision is made to source a new staff member. If it is decided to seek out an internal candidate, the number of people involved in the process can be reduced somewhat. The person coordinating these people needs to ensure that each understands the process and how they will contribute to it. In small- to medium-sized enterprises, staff may attempt to undertake these responsibilities in addition to their job which can lead to cutting corners. However, the more strategic organisations which value staff as assets will recognise these responsibilities as part of their job and not in addition to it. Getting the right person is paramount and those involved in the processes need to be given time to ensure their contribution is not rushed — they will need time to reflect. As all appointments of new staff can be viewed strategically, matching the longterm needs of the organisation must be matched with applicant’s human capital and potential. The strategic driving force of appointing new staff needs to be understood by those involved in the selection process While each person can be assigned a specific role in the process, the coordinator of the appointment process may need to conduct an audit regularly. This should highlight issues quickly so they can be resolved just as quickly. Providing a hardcopy and/or electronic copy of the plan to those involved in the process gives people the opportunity to refer to when the need arises. The involvement of a large number of people can lead to individuals trying to interpret the role, the processes or the outcomes, and this may lead to different people having different views of the roles. Thus, it is wise to bring all parties together so that any misinterpretations can be sorted out and a consensus of the processes and each person’s role can be gained. This should occur very early in the recruitment and selection stage and regular but brief meetings held to gain feedback on the processes used and to address any unforseen issues that may arise. All attempts should be made to ensure the processes are valid, reliable and objective. Human error needs to be reduced as much as possible.

11.7.

Other External and Internal Deterrents

11.7.1. External Deterrents There may be a range of other factors impacting the selection of new staff. It was previously mentioned that the corporate image of an organisation can either help or hinder the selection process. The view of the organisation as a good corporate citizen and its policies on environmental sustainability may also affect the selection process.

332

Bernard O’Meara

However, there are a range of other external influences that need to be considered if selection is to be successful. Counter cyclical thinking has been outlined as a means of gaining valued and loyal new staff when, during a recession, other organisations lay staff off. Certainly the economic decline of one or more countries can have a devastating impact upon selection. The Global Financial Crisis saw many large countries decline and in these countries, austerity measures were implemented as the level of unemployment grew higher and higher. The value of various currencies changed rapidly and affected national imports and exports. This led to changes in revenue generation and increased costs. In the EU, the existence of a common currency, the euro, also created problems, as devaluations were not possible by countries using the euro. The countries affected by the economic decline and austerity measures also impacted their trading partner countries. There was a flow-on effect that impacted multiple countries, and jobs became very scarce in some countries. In Australia, the threat of a mining tax led to many projects being delayed or moved overseas where the cost of mining was cheaper. This had the potential of fewer jobs being available in the mining industry which is a substantial employer in Australia. Selectors are expected to know their environment in terms of industry trends, changes in government policy, the health of competitors and community trends and expectations. If selectors provide the staff who help the organisation achieve its goals, then they need to understand the role that external forces play. Knez-Riedl, Mulej, and Dyck (2006) argue that Corporate Social Responsibility (CSR) necessarily entails systems thinking as CSR, where embraced, is a result of the interaction between the organisation and its community. This highlights the link between one system and another and illustrates how one influences the other and how one responds to the expected standards of the other. Thus, the image and reputation of the organisation in the community is due to this interaction of systems. The feedback loops of the organisation tell it what the community wants and expects and it is the people within the organisation who make the decision to embrace CSR or view it as an unnecessary cost. The community then responds to the actions of the organisation by deeming it to be a good corporate citizen where it has embraced CSR. This determines the reputation of the organisation and helps it to be viewed as a preferred employer and such an organisation is likely to attract more applicants for a job vacancy. If the organisation is not deemed to have embraced CSR and it not viewed as a preferred employer, this will deter suitable applicants applying for a position there. The interaction of the systems translates into greater or fewer applicants applying for a position with the organisation. Similarly if an organisation has been accredited by Social Accountability International (SAI) (2013) and comply with Social Accountability 8000 (SA8000) then the organisation must have developed demonstrable policies and procedures that protect the basic human rights of its employees. This voluntary social compliance requires an accredited organisation to meet its social responsibility in terms of:

Continual Improvement: The Kaizen Requirement • • • • • • • • •

333

Child labour Forced and compulsory labour Health and safety Freedom of association and rights to collective bargaining Discrimination Disciplinary practices Working hours Remuneration Management Systems

An organisation that is accredited and compliant with SA8000 is signalling to the community that it is a good corporate citizen and recognises and accepts this responsibility and acts accordingly. This accreditation feeds back through the community’s feedback loops and will encourage people to apply for positions there rather than deter applicants. The local demographics may change over time and force the organisation to develop local candidates or to target communities in other regions, states or countries and source new staff there. As already mentioned, external forces can mean that organisations close their businesses and relocate to places where human capital is easier to acquire.

11.7.2. Internal Deterrents While there are a range of external barriers to successful selection, there are also a range of internal barriers as well. These may be caused by poor communication, the nature of hierarchy, poor interpersonal competencies or even competition between colleagues seeking a promotion. Two or more people may have applied for the same position and if one person is appointed the other feels aggrieved. Human perception can, at times, be misleading. Conflict can occur due to false assumptions, rumours and misinterpretation. As already noted, adverse cultures can flourish and be disruptive to team processes. However, even if a productive overarching culture does exist, counterproductive sub-cultures can form and have a very negative impact. The organisation may have outdated policies which may, indirectly, be discriminatory. It may have a short-term focus and could view staff as an expense to be controlled. The prevailing management philosophy may be counterproductive as staff work as required but are not fully productive or engaged. The organisational diagnostics should only occur when new staff are being sourced. Instead, organisational diagnostics should become an ongoing process. In this way it would be ideal if internal barriers to the effective appointment of new staff are dealt with prior to the commencement of the selection process. However, organisational diagnostics can be used to monitor the external environment to monitor and evaluate trends and activities which may impact upon the organisation, its performance and achieving its strategic goals.

334

Bernard O’Meara

Thus, talent acquisition staff need to fully understand the strengths and weaknesses of the organisation as well as opportunities and threats to its strategic capability. If these negatively impact upon the organisation, then they impact upon staff and the ability to source new staff. The integration of feedback loops, organisational diagnostics and the balanced scorecard provide a steady flow of data that can be analysed to help the organisation achieve a strategic sustainable competitive advantage through employing the best new staff. This type of integration is consistent with systems thinking which Parent, Roy, and St-Jacques (2007) define as a conceptual framework that integrates different perspectives to solve problems. Systems thinking is especially important in the search for talent as it helps selectors understand how various internal and external factors influence the appointment or non-appointment of suitable applicants. Thus, there are numerous internal and external factors that can influence the decision of candidates to apply for a particular position. These factors also influence the decisions of selectors in determining if an applicant is suitable for a position or not. Selectors may deem a suitably qualified applicant as inappropriate because of the prevailing internal culture of the organisation. A conscious decision may be made by selectors that they wish to reinforce the culture, not counter it, and in less strategically based organisations, such subjective considerations may occur, but not be noticed, or even taken for granted by selectors. Thus, viewing the system of selection from a variety of perspectives may help selectors detect discriminatory elements that may damage the reputation of the organisation. This may also lead to the best applicant not accepting the position — in effect it deters applicants rather than encourages them. Woodside (2006, p. 25) states, ‘Thus, in real-life systems, a number of major causes (usually three to ten) might be identified as affecting changes in any one system variable.’ Systems are complex, interrelated and interdependent and an organisation may have many variables, which, when changed, affect other variables and therefore the reliability and consistency of the system itself.

11.8.

The Transformation Process

Cusins (1994) demonstrates that systems have processes that transform inputs into desirable outputs. In the case of talent or knowledge it can be acquired from outside the organisation, but once the person commences with the organisation the transformation process begins. The list of expectations outlined in earlier chapters highlights what the organisation wants the new employee to achieve. It does this through training, education, personal and professional development and by providing the individual with

Continual Improvement: The Kaizen Requirement

335

learning opportunities. These processes help the person realise the potential that the selectors believe the person has. The transformation process takes time and commences with engagement and socialisation practices once the person is deemed to be a suitable applicant. These processes signal to the applicant that the organisation is prepared to invest in their future, provided there is a return on their investment. In the overall organisation system, new staff enter the organisation from its external environment, are transformed into valuable fully contributing staff and then eventually retire or resign from the organisation. However, with respect to the system of selection, the transformation process is ongoing. But there comes a time when the person is realising his/her potential and the person’s status changes from that of a new employee to independent staff member. At this time the focus of selectors changes from planning learning activities for new staff to one where performance and variances from expected behaviour and achievement are monitored. Selectors will still analyse performance and actively interact with staff but they will be looking for a different type of feedback in order to activate other intervention and developmental activities. The transformation process allows managers, supervisors and selectors to evaluate the effectiveness of the transformation processes themselves, but it also allows them to evaluate if the new employee can be successfully transformed into a fully contributing, independent staff member. This process continues long after the induction program, which occurs early in the new employee’s time with the organisation. The selectors are, in conjunction with managers and supervisors, addressing the fit between the person and the job/ organisation. The intense socialisation, training and education, salary, learning opportunity, open communication channels and motivation are designed to create the best possible environment where new staff can develop and demonstrate their potential. But despite the best efforts of organisations, at times new staff may not respond. A check of the list of expectations of the new employee compared to actual outcomes may throw light on where the variance has occurred. As part of the feedback loop, this information can then be used to determine if the variance was predictable and could be offset. This can highlight issues at the recruitment and selection phase. This may show that had different questions been asked then the variance between prediction and outcome may have been determined and dealt with at that stage. This is a time to analyse if the data gathered about the applicant via questions, testing, assessment centre attendance and reference checks was thorough and comprehensive. It is a time for the selectors to review what the applicant said or what she or he did not say. Both processes recognise that crucial information was not gathered by selectors or given by the applicant. Reflection of this type and discussion with the staff member is needed to ensure that the same error does not occur in the future. This is a part of the continual improvement process. However, such reflection and discussion may not reveal any significant gaps, and selectors then need to turn their attention to the transformation processes themselves. Applicants do not always correctly interpret the signals

336

Bernard O’Meara

sent by selectors. This may mean an excellent applicant decides not to pursue the job on offer. It may also lead to low levels of self-esteem for new staff members. In any case a miscommunication has occurred and subsequent miscommunications need to be identified and eliminated. At this point a review of the recruitment and selection processes can be undertaken to identify areas where misinterpretation could have occurred. However, once the recruitment and selection processes are done with and the methods used to gain information about the applicant are appropriate, the transformation processes must be scrutinized. This is why selectors continue to monitor and evaluate new staff engagement, development and work quality well beyond the appointment and induction phase. A discussion with the new staff member may show that their expectations of the job or the organisation were unrealistic and, if so, selectors can learn from this. However, a discussion with the staff member and his or her supervisor and manager may indicate a deficiency such as: • • • • • • •

Communication was poor Supervisors expected too much from the person The person was not engaged Intense socialisation was not positive The culture or sub-culture was not deemed embracing The wrong motivation strategies were employed Aspects about the job or the organisation were only considered negative by the person once he or she commenced with the organisation • The training delivery method did not suit the person’s learning style • An unstable psychological contract The transformation phase of systems can also be used to gather information about the impact or lack of impact on a new employee. This sub-system of selection provides additional information for analysis via the feedback loops. Because each person is different and responds differently to stimuli a universal, a one size fits all approach will not have the desired effect on each person. In order to be effective and to create the most beneficial environment for the new employee to grow and develop, it is best to craft the different components of the transformation process to suit the individual. Of course, some components can be used universally and due to cost burdens may choose not to customise the processes to the individual. This needs to be considered in the context of what the organisation wants the new employee to achieve.

11.9.

Evaluating Performance and ‘fit’

The ideal applicant, once employed, should fit both the job and the organisation; however, in reality this rarely occurs. The new employee may suit one or the other

Continual Improvement: The Kaizen Requirement

337

or both, but to varying degrees, and post-employment, selectors can determine just how close the fit with these aspects is. Again, the observations of the person’s performance, quality of work and engagement can be compared to the levels anticipated during the selection process. Variances need to be investigated to ensure that the selectors optimise their own performance and that the selection methods were free from bias and were flexible enough to elicit the information needed about the applicant. In terms of job fit, both the organisation and the new employee will be determining how close the fit actually is. The organisation has the benefit of knowing the quality standard required for the job, measurable outputs such as volume, sales, targets and timelines. However, with the continuation of socialisation throughout the induction and beyond it, selectors will be attempting to determine the person’s level of job satisfaction, level of confidence and commitment to staying in the job. Once employed, new staff may find aspects of the job or its environment more challenging than expected. This is especially the case for those with limited work experience. Talent/knowledge managers can adjust aspects of work the person finds more challenging by on-the-job training or increasing mentor input. Judging the person organisation fit is a little more difficult because new staff may feel it inappropriate to be seen as criticising the organisation. An outline of barriers to creating strong person organisation fit has already been discussed previously; however, it may take more than just socialisation practices and motivation strategies to retain staff. Backhaus (2003) undertook research on the level of importance of person organisation fit to job seekers amongst college students. Factors such as age, gender and years of work were not found to be significant. However, it was found that those who had previous bad experiences with organisation fit were more likely to put greater emphasis on fit in their current organisations. The previous bad experiences would lead such new staff to be more cautious about their fit with their current organisations. The researcher noted that these bad experiences could be discovered during the selection process and reassurance given that another bad experience was not expected. While applicants may view this as pure rhetoric, intense socialisation practices could be used to counter this negative view. As these practices extend beyond the induction, there should be a smoother transition for the person into the organisation’s workforce. Other aspects of the induction could be developed around the concerns of the new employee and designed to reassure and motivate the person. While this may be effective, some new staff may not feel reassured and leave. As part of the retention strategy of the organisation, an exit interview would be held and an investigation of the variance between expectations and real outcomes would need to be undertaken in order to ensure it was less likely to occur again.

338

Bernard O’Meara

11.10.

Human Resource Information Systems and Talent Management Systems

Those who recruit and select new staff have different assignations depending upon an organisation’s view of existing staff and new staff — depending upon their orientation. Such staff can be called talent acquisition managers, knowledge managers, selectors, recruiters, recruitment and selection managers, HR Managers, PM or any combination or variation of these titles. Different titles have been used throughout this text to demonstrate that those responsible for acquiring human capital and potential can have different titles. The information systems used by these practitioners also have different titles and some of these can be differentiated to some extent. To clarify the different types of information systems and their respectful roles Burbach and Royle (2010, pp. 416 417) use the following definitions: • Enterprise Resource Planning System (ERP) — This system synthesises information from all functions of an organisation including HR, marketing, production, sales and other functions. The ERP can incorporate or operate alongside a Human Resource Information System • Human Resource Information System (HRIS) — The HRIS is a dedicated system that collects, stores, analyses and report on all HR aspects of an organisation including recruitment and selection. The HRIS can incorporate a Talent Management System • Talent Management System (TMS) — Talent management needs to cover the acquisition of talent, its development, use and retention. This was outlined in Chapter 9 • International Human Resource Management System (IHRM) and the Global Human Resource Information System (GHRIS) — IHRM and GHRIS are used by MNCs to collect and analyse HR-based information across the countries in which they operate. Each country may still have its own HRIS and/or TMS to provide data on staff in these locations and this information may be fed into an IHRM or GHRIS for corporate reporting and use Their research confirmed the view that the use of a commitment to TMS varied greatly due to local cultures and host country dissimilarities. They support the assertions of Cappelli (Burbach & Royle, 2010) that a TMS should be inclusive and able to resolve incongruity between the supply and demand of talent. Commitment by managers and other stakeholders to TMS is also important from a strategic perspective if an organisation is to gain maximum benefit from the use and application of talent acquisition and talent management. In fact, Kassim, Ramayah, and Kurnia (2012) found that commitment by HR professionals to the use of TMS was crucial for its effective use. They found that the use of information technology freed HR staff up so they could concentrate on strategic issues.

Continual Improvement: The Kaizen Requirement

339

Traditionally, TMS have encountered a range of barriers to their use, such as siloed talent-management initiatives, in that different people have been responsible for different parts of talent acquisition and management. This has resulted in each part of the system being unnecessarily isolated from the other parts. A person might be responsible for acquiring staff, another person is responsible for their induction and training and other staff are responsible for other parts of the TMS which remain isolated from each other. Another barrier is that more emphasis has been placed on management talent rather than on all aspects of the organisation. This has led to a horizontal barrier between management and those aspiring to be managers in the future. A lack of updating and integrating systems and information can lead to the information generated being dated and of limited use. The limited use of the technology and software can then lead to management deciding not to invest in new technology due to prohibitive costs and an expectation that the data generated will also be of limited use. Corsello (2012) believes that the current introduction of cloud technology will overcome such barriers because it is always available to all users. Data could be uploaded after an interview and the material would be instantly available to all users. Cloud technology also means that a range of different methods can be used to upload data, including mobile phones, computers and tablets. This also means that data is not just available on one computer or server but is available centrally in the cloud. Thus, interviewers on a selection panel could all upload their assessments and views simultaneously as could tests results or performance in assessment centres, once these have been calculated. The Cloud Talent Management System (CTMS) could be readily accessed anywhere and anytime. In terms of cost justification, expenditure would be on improving and upgrading the application itself. As many forms of technology can be used to access the cloudbased data then heavy investment in hardware could be minimised but provide users with more information and at a faster rate. Talent management systems allow applicants to be tracked, maintain information gathered from applicants and can be used to track performance, development of human capital, succession, training and education once staff are employed. However, the system provides a wealth of information about unsuccessful applicants who the organisation may wish to reconsider at a time in the future. Thus, there is a strong argument that TMS are a necessity for the contemporary, strategic organisation that values staff. If a variance in new employee’s performance, engagement or tenure fails to meet expectations then the review of the TMS may be used to identify the cause of the variance. If the TMS includes comments from the selectors, as well as the person’s colleagues, supervisors and managers, this might highlight potential causes. The TMS should also record if the person met targets for learning activities during induction as well as comments regarding illness, engagement and all other relevant aspects of the person’s employment.

340

Bernard O’Meara

A fully integrated TMS can be extremely useful in deciding if the variance was caused by misinterpretation by the interviewers, or the acquisition processes or the transformation processes including induction. A Cloud-based system could be used to record comments, observations, recommended changes to assist the new employee such as referral to an EAP. This material could be uploaded quickly and easily, rather than confined to memory, and hopefully recorded accurately at a later time.

11.11.

Continual Improvement (Kaizen)

As outlined in Chapter 2, the fundamental concept of Kaizen is continual improvement. Thus the lessons learnt from the evaluation of selection can be analysed and form the basis of improvements for further selection activities. While the concept itself is straightforward, the implementation, history and application of Kaizen is somewhat more complicated and needs to be fully understood before the selection processes can be improved. The concept of continuous improvement was introduced to Japan as part of the rebuilding process post the Second World War. The concept was embraced by Japanese industries and quickly became a part of the country’s success, particularly in the manufacturing sector. However, as Shang and Pheng (2013) note, there are very few industries that have not been affected by the application of Kaizen. Issues such as cost reduction, increase in quality, timelines and customer service are driven by consumers and other organisations, wanting to differentiate themselves from others in the industry. They note that the Japanese character Kai means to ‘take apart’ and the character zen means ‘to make good’. There have been different interpretations of this and Toyota introduced its ‘lean production’ approach which it claimed included the ‘pursuit of perfection’ and Kaizen. However, Shang and Pheng (2013, p. 19) cite one definition that views Kaizen as ‘…pervasive and continual activities, outside the contributor’s explicit contractual roles, to identify and achieve outcomes he believes contribute to the organizational goals.’ Yet, it is reasonable to assume that Kaizen can be applied to different industries and organisations in slightly different ways. If Kaizen is rigid and inflexible then its use would be extremely limited.

11.11.1. The Characteristics of Kaizen But its three distinct characteristics are transportable across organisations and industries and it is in effect flexible. As such the principles can be massaged to suit the needs of the users and of the organisation. However, each implementation and application may be different.

Continual Improvement: The Kaizen Requirement

341

The three core characteristics of Kaizen are: • It is continuous • Its nature is incremental • It is participative Kaizen is continuous in nature and can be applied to both external interaction and internal change. As internal and external contexts of organisations change, Kaizen can be used to readjust to such forces in the best interests of the organisation and its staff. Thus, Kaizen can be viewed as an ongoing set of activities that change as the context of the organisation changes. Kaizen may be used to change the public image and reputation of the organisation, but as the priorities of society change then Kaizen can aid the organisation in readjusting to these changes accordingly. Kaizen is ongoing, flexible and changes over time to meet new challenges. The Kaizen philosophy is very compatible with systems theory and feedback loops that combine to maximise the organisation’s potential and adjust as new challenges arise. As a process, Kaizen does not end as challenges continually arise and need to be addressed. Incremental improvement means that change takes place gradually and over time. However, as Kaizen provides a learning opportunity for staff in an organisation, it may indeed lead to sudden change where this is deemed necessary. As Kaizen requires something to be taken apart and made good, Kaizen means that staff continually synthesise in a meaningful way to improve systems, processes and activities. In terms of talent acquisition, the outcome of analysis and synthesis may lead an organisation to relocate to a geographical area where talent is demographically abundant and accessible. In this case, incremental change, analysis and synthesis eventually lead to substantive change. However, this need not be the case in all situations. It is more likely that talent acquisition staff may identify the need to ask more relevant questions or to conduct more intensive reference checks or use more technology to increase the talent pool from which to choose applicants. The third characteristic of Kaizen is that it is participative. It may be beneficial for talent acquisition staff to include supervisors and managers in their selection evaluation in the hope of getting fresh perspectives from other staff. The involvement of other staff, particularly senior and executive management, can also help them to understand the importance of recruitment and selection and its ability to drive the organisation to strategic success. This can lead to the establishment of one or more Kaizen teams with the desired outcome being the improvement of the areas being reviewed. In terms of talent acquisition, the key people involved would be selectors as well as their clients — supervisors and managers. The team needs to be necessarily open and transparent and this form of organisational learning would lead to increasing the capacity of the organisation to achieve its strategic and operational objectives.

342

Bernard O’Meara

Shang and Pheng (2013) note that research has suggested that the Kaizen approach has been linked to organisations achieving strategic competitive advantages as well as improving morale, creativity, job enrichment, safety, innovation and a reduction of costs.

11.11.2. Types of Kaizen In the strict sense, there are two related types of Kaizen. The first is maintenance Kaizen, which is a reactionary process when things go wrong. The goal of this type of Kaizen is to get things stabilised and back to normal. In the instance of selection, this might mean that a computer system crashes when applicants are about to undertake an online test. However, the learning outcome of this may simply be to have a backup system or hard copy ready in case of power shortages or computer failures. This would not require a Kaizen team approach to solve this for future testing days. Certainly, where systemic aspects emerge, a Kaizen team may be required to completely rethink each aspects of selection and that would also address subsidiary issues such as computer failures and power shortages. The second type of Kaizen relevant to strategic recruitment and selection is improvement Kaizen, where the quality bar is raised. Maintenance Kaizen should feed into improvement Kaizen and they need not necessarily be separate from each other. In its early life gemba Kaizen was introduced in operations where small, low-cost improvements could be introduced. In particular, production systems could be continuously improved so they became more efficient and more reliable. In order to offset familiarity and being too close to a process to notice its defects, Jishuken. Introduced a ‘new pair of eyes’ that could see issues that were not readily apparent to those involved in the process. Thus, in a Kaizen team-based approach both clients (supervisors and managers) are involved, along with other cross-functional staff, who can provide added insights into improving the selection system. This team approach is not seeking unrealistic perfection but instead the members pose questions to the selection staff in the hope of generating new ideas and new perspectives. Team members who are not selectors can become familiar with talent acquisition without losing sight of the goal of selecting staff — to meet the short-, medium- and long-term needs of the organisation and match those with the capacity and aspirations of applicants. Selection is a strategic aspect of the organisation. It is costly but it plays a major part in helping the organisation set and achieve its strategic goals. Incorrect selection can lead to significant financial losses and impact on the image of the organisation and, in some cases, upon its viability.

Continual Improvement: The Kaizen Requirement

343

Selection also locks in salaries and other costs for the entire time a new employee stays with the organisation and every effort must be made to get it right. Becoming a part of a Kaizen team can make the selectors see their activities from different perspectives; this is a positive contribution that should not be viewed as a threat to selectors. It should show they are willing to learn and grow professionally and, in doing so, help the organisation. Each time a new person is selected, a learning opportunity exists that may help improve the acquisition of future leaders in the organisation and these opportunities need to be embraced. Shang and Pheng (2013) describe four common activities associated with Kaizen. These are: • • • •

Zero defect Suggestion schemes Policy development Small group activities

The concept of zero defect is another ideal that organisations may strive for but in reality never reach because of a myriad of reasons beyond the control of the organisation. However, the principle underscoring zero defect is common in more strategically based organisations in highly competitive industries. This principle views every member of an organisation as individuals who can detect issues and who can refer these issues to the people who can resolve them. Each person becomes an ambassador for the organisation and a quality mindset is so strongly embraced by management that it becomes embedded in the culture of the organisation. This means that mentors or colleagues of new staff who fear the new employee may be experiencing anxiety, are prepared to refer such a matter to those who can reassure the new employee that all is well. This can be augmented by the implementation of a new motivation strategy. However, for an organisation to embrace Kaizen fully it needs to be committed to: • Viewing staff as assets • Open two-way channels of communication • Valuing errors and mistakes as tolerable learning opportunities that can be used to improve the organisation, its policies or processes • Developing trusting and supportive horizontal and vertical relationships between staff • Developing confidence in staff to identify areas for improvement and ideas In order for Kaizen to operate effectively the environment needs to be established where the principles can flourish. Communication channels must be open and twoway so that staff know that the organisation takes them seriously.

344

Bernard O’Meara

Where a new employee is experiencing issues, there needs to be a clear communication channel where the person can highlight the problem and get feedback quickly and appropriately. If communication channels are blocked, then issues will rarely be expected to reach the appropriate person. Staff must also know that by highlighting mistakes and errors they will not be disciplined but understand that errors and mistakes are a way that organisations learn, grow and become better at what they do. Mistakes and errors occur daily but they can be a positive learning experience. It can take a massive cultural and mindset shift for the staff of an organisation to view mistakes and errors in a positive and constructive way. In most cases, small mistakes are tolerated, but more significant mistakes with a high cost are not embraced as learning experiences. A great deal of discussion needs to take place before moving to a Kaizen strategy, as once committed, the organisation should not deviate at all. If an organisation’s management commence a cultural shift but then reject it due to cost or external economic pressures, staff will view Kaizen as just another management fad. This makes commitment to any subsequent philosophies much harder to implement and to achieve desired outcomes. Suggestion schemes have, unfortunately, tended to have monetary rewards attached to them and staff have sought the reward rather than recognition for innovativeness through presenting new ideas. In the case of staff selection, careful consideration needs to be given to new staff who proffer ideas about their selection experience so that others in the future will enjoy more effective selection process. Generally, no financial reward would be attached to such suggestions; however, each organisation would need to consider this. Changes to the selection system would need to be carefully considered and researched as each person moving through the selection processes would perceive them slightly differently. Thus, if a selection Kaizen team suggested changes to the processes currently in use, the changes may be effective with some applicants but not others. A trial and error process can be employed but research by selectors regarding the changes may assist in determining if the changes are warranted. A selection Kaizen team would certainly consider the construction and implementation of selection policy. Such a policy would give selectors a clear path to follow. However, to be successful the Kaizen team would need to appreciate that the development of a Kaizen strategy and selection policy need to be reviewed constantly in order to meet unknown future challenges. These evolve over time and through the increasing experiences of team members. A policy document is a document that reflects the organisation’s direction on certain issues. An organisation may have a policy that vacant positions must be advertised internally and externally concurrently. Other organisations with an internal labour market approach may have a policy that an internal search for suitable applicants needs to yield no results before an attempt is made to source applicants externally.

Continual Improvement: The Kaizen Requirement

345

A selection Kaizen team is there to ask questions rather than to find an absolute answer. The team would necessarily be small but of a manageable size and have a range of people representing the diverse groups and departments of the organisation. The more diverse the members of the selection Kaizen team, the more diverse the range of perspectives. The team needs to be able to respond to each of the diverse perspectives given by members and once more view this as an excellent learning opportunity rather than be intimidated by the diversity. In order to embed Kaizen in the culture of the organisation, senior management must be both seen to support the concept and actually participate in the team to demonstrate commitment. Other aspects such as standardisation may apply to other areas of a business but in the context of recruitment and selection this may not apply in all instances. This is because each selection activity is different and each applicant may be different as well. It may be that testing can be standardised, however, as already discussed, cultures and work ethics vary across nations and even across states or provinces within countries. Thus, different customised approaches may be required at times, but this makes comparisons difficult as the approaches and outcomes may be different. Also, in order to minimise costs, many organisations conduct induction programs at one particular time of the month or year. This means that a person can commence employment but not be included in the induction program till several months later. This form of standardisation may be cost effective but not necessarily achieve the desired outcome. A typical selection Kaizen team could consist of: • • • • • • •

The talent acquisition manager (chair or convenor of the team) Other talent acquisition staff CEO or general manager Line managers and supervisors who have required new staff in the last six months Other HR staff responsible for training, performance evaluation Staff who have successfully joined the organisation in the last 6 12 months Other talent acquisition staff from non-competitor organisations

The team would need to meet three or four times a year or more frequently if deemed appropriate. If the organisation is very large, it may be useful to create a number of Kaizen teams across the organisation that feed results into an overarching selection Kaizen team. Shang and Pheng (2013) note that Kaizen can be costly. However, selecting the future leaders of the organisation is also costly and the cost of not employing the right staff is extremely high. As mentioned earlier, Kaizen need not be rigid and in the context of selection there need be no financial incentives via reward schemes for suggestion schemes. The lean production approach used by Toyota need not be applied to Kaizen selection. Selection Kaizen is not about cost cutting, it is about learning from past

346

Bernard O’Meara

and current selection practices and interaction to ensure the selection processes are robust, flexible, reliable, are legally appropriate and result in the selection of the right staff.

11.11.3. Management Development Marksberry, Badurdeen, Gregory, and Kreafle (2010) note that Toyota’s use of Jishuken — a fresh pair of eyes — requires consistent leadership engagement and participation. As mentioned earlier senior management need to be a visible part of the Kaizen process. It is management who develop an understanding of the principles and initiate, support and/or lead problem-solving activities at Toyota. In selection Kaizen, management also needs to commit to Kaizen and be a part of it. The team is there to answer two key questions: • What can we learn from the last appointment of staff? • How can we do better in the future? These questions reflect all aspects of selection, including the full cost of the processes such as training, induction and retention. With strategic recruitment and selection accounting for a huge cost to organisations then management needs to be involved to understand how the costs are allocated and the impact of staff appointment on productivity, morale and staff turnover. Once senior staff understand the role of talent acquisition and the impact it can have on the entire organisation, they need to be involved so they understand the system itself and that Kaizen, feedback loops, costs, balanced scorecard and strategy all come together to ensure the selection system and its process are being continually updated and improved. Senior staff need to be involved in all strategic aspects of an organisation including selection Kaizen. As a learning tool, this approach also helps managers to improve their own continual improvement activities in their own part of the organisation. In this case, managers can become coaches and the foundation of selection Kaizen can then cascade as a philosophy and activity throughout the rest of the organisation. The implementation and use of Kaizen in selection allows managers to learn what talent acquisition is about, how it operates, its importance and becomes a tool to develop managers for more senior roles within the organisation. This adds knowledge and value to managers and helps them to develop into well-rounded professionals who understand and value the contribution that people make to an organisation as well as other functions such as sales, marketing and administration. Management participation in selection Kaizen illustrates the commitment of the organisation to staff. It also helps the concept be embedded into culture, a culture necessarily built on open communication, trust and confidence.

Continual Improvement: The Kaizen Requirement

347

11.11.4. Kaizen Methodology Marksberry et al. (2010, p. 677) outline the Jishuken eight step process as: • • • • • • • •

Clarify the problem Break down the problem Target setting Root cause analysis Develop countermeasures Implement countermeasures Monitor both results and processes Standardise successful processes

While problem-solving approaches can be used in a vast range area they are especially useful in the selection process as the following examples demonstrate. The problem A new staff member who was appointed three months ago resigns from the organisation. Upon hearing of the resignation, the selectors arrange to talk to the person and gain some background from the person’s immediate supervisor and manager. The supervisor reports that when he was given the resignation the new employee simply stated that she had found a better job. Clarifying the problem — The manager cannot provide any further information regarding the resignation as she has been overseas for the last six months. The supervisor has not been able to get any clarification from the employee and is now thinking about how to cover the exiting employee’s duties till a replacement can be found. The mentor cannot supply any additional information. The selector finally catches up with the employee, Rebecca who confides that she had applied for several jobs and took the first offer that was made. However, another employer who interviewed Rebecca three months ago has contacted her to see if she is interested in a job with better pay and conditions. The job on offer is also closer to the job she really wanted. Rebecca confirms that the job she currently has is not what she wants and has already accepted the job offer with the other organisation. It now emerges that the problem has several elements: • Rebecca accepted the first job she was offered • The job given to her was not what she really wanted • At the interview she did not volunteer she had applied for other jobs nor did she volunteer that the job she accepted was not ideal • The mentor, supervisor and manager were not aware that Rebecca was unhappy to the point of accepting another job offer • The list of expectations stated that Rebecca would be a long term employee Breaking down the problem — It would appear that a number of factors may have been in place including: • The questions asked during the interview did not elicit the right information • Questions regarding other job interests could have been asked

348

Bernard O’Meara

• The rapport between the interviewer(s) and the applicant may not have been established • The applicant did not feel confident enough to say the job on offer was really not what she wanted • The mentor had not established a strong rapport with Rebecca • The supervisor and manager assumed all was well until Rebecca resigned • The supervisor and manager may have focused on the job in terms of quality, output and timeliness rather than through engagement • The induction and training were transactional without any real socialisation • Rebecca did not feel confident or comfortable with speaking openly and freely about the other job offer. This is, unfortunately, quite common • These factors would be reviewed where other staff have been appointed to determine if there is a systemic problem or if this outcome is unique Target setting — If the outcomes are deemed to be representative of systemic problems then the target may be is to review the interview questions and interview types within three weeks. The team may decide to seek external input by consultants to review the questions, interview type and style and assist the interviewer(s) establish a closer rapport with applicants. A longer time frame may be needed to review the induction processes including socialisation. The relationship between Rebecca and her mentor, immediate supervisor and manager may also take longer to address. But these people could form part of the selection Kaizen so they appreciate their respective roles. Root cause analysis — The root cause may include poor communications or that staff were under pressure to fill the vacancy quickly, or it may be that the management philosophy and orientation mean that staff are not valued as assets. Develop Countermeasures — A list of countermeasures may be determined to offset the root cause of the issues such as enhancing communication, determining if timelines should always come ahead of staff retention. However, countermeasures for the systems of the root causes may include the following: Create an interview template which outlines establishing a rapport, questions to be asked, including questions regarding other options and those used to confirm the job on offer is the one the person actually wants. Socialisation practices may need to be monitored and more frequent contact made with new employees by selectors. A timeline of regular meetings between new staff and their mentors, supervisors and managers created and feedback given every week for the first month and then once a fortnight for the next five months. Other countermeasures can be created as necessary. Implement countermeasures — The countermeasures need to be carefully considered and aligned with the strategic directions of the organisation. If all countermeasures are introduced at the same time it may be difficult to determine which lead to improvements and which do not. The countermeasures should be sequenced in line with their relative level of priority, persons appointed to monitor the implementation process and regular progress reports provided to the selection Kaizen team.

Continual Improvement: The Kaizen Requirement

349

Monitor both results and processes — The monitoring of both results and processes is necessary to ensure that one leads to the other. Selectors will want to avoid chance outcomes but instead will want to ensure the reliability and validity of the processes and achieving the desired outcomes. A person may seek employment in a job just to get income, as did Rebecca, and changing selection processes may not result in any other outcome. By chance a new employee may find that she or he likes the job and the organisation and stay happily in their job. However, this is not a result of the processes and other potential staff may not continue to seek employment with the organisation or may leave shortly after commencing employment. Standardise successful processes — The selection Kaizen team may decide to retain the principles and processes established or they may continue to evaluate them well beyond the implementation and monitoring periods. However, because different people react differently to different situations, questions and interviews then flexibility may also be retained. Van Aken, Farris, Glover, and Letens (2010) note that it is important to communicate positive outcomes to other stakeholders and areas across an organisation. This can establish the bona fides of the use of Kaizen so that, in the case of selection, staff know that every effort to secure the right staff is being made by the responsible department.

11.12.

Fixing It!

It might seem redundant, but once the root cause has been identified as causing or contributing to poor selection performance, there is an expectation that the issue be resolved quickly. The additional cost burden to an organisation and the negative impact that poor selection has on morale, motivation and achieving strategic goals means that every effort should be made to reverse the situation. This would be expected of any area of an organisation and talent acquisition is no exception. The Kaizen approach used in selection can be tailored to suit the unique features of selection and provides a formal means that should lead to greater success in attracting and retaining staff.

11.13.

Summary

The chapter addresses how strategic recruitment and selection processes can be evaluated, learnt from and improved for the future. The list of expectations is a document that is created at the time of accepting a job offer. This sets out the selectors’ beliefs and views based on interviews, testing, reference checks and other selection techniques.

350

Bernard O’Meara

These processes are used to appoint staff and the outcomes, new employees, should have organisational resources committed to them for the time they are employed by the organisation. Once new staff commence employment, the list of expectations can be checked against actual outcomes, such as the amount of training required, tenure, job satisfaction and promotion potential. Any variance between the expected outcomes and the actual outcomes suggests that the processes or those using them were not optimal. The variances are fed back to selectors via systems feedback loops and provide selectors with a form of quality assurance. If the feedback is not optimal then data from the feedback loops need to be analysed on the basis that future mistakes could be made if errors are not rectified. The components of the selection system are then reviewed commencing with the inputs to the system — applicants. Applicants come from all areas of society and are part of multiple systems. However, organisations can try to identify where suitable pools of applicants are located and communicate knowledge of vacant positions to them. Organisations can create links with other organisations in the community such as colleges, schools and universities. In this case, the organisation needs to work with the college to ensure that college staff know what the vacant position is, as well as the type of qualifications needed to successfully undertake the role. Once it is known where potential staff come from, selectors can work with the college if graduates are found to be unsuitable. The other alternative is for the organisation to establish a robust working relationship with other schools, colleges or universities. The selection processes are many, but they need to be supported by effective communication and clearly defined roles. The effective communication between the selectors and applicants, consultants and other organisations need to be clear so that there are no misunderstandings, as these negatively impact upon selection. Those who actually use the processes, including selectors, also need to review their own performance, as the systems might be appropriate but those using the processes are using them incorrectly. Alternatively their style of engagement or use of questioning techniques may hinder the effectiveness of selection. There are a number of factors that may deter applicants from applying for positions and external deterrents can include corporate image and reputation. However external factors, such as being classed as a preferred employer or being accredited by SIA8000, can actually encourage candidates to apply for positions with the organisation. Internal deterrents to successful selection, which include culture, structure, management philosophy and orientation, can be negative and can deter applicants from applying for positions with the organisation. However, organisations that are known for staff engagement, open communication channels and positive motivation strategies are likely to attract applicants. The transformation process includes induction, training, positive communication, engagement and mentoring. These help transform the inputs — new staff — into outputs or fully functioning independent staff who positively contribute to the organisation. The closeness of fit between the new staff member and the job/organisation can reflect the appropriateness of the selection processes and those who use them.

Continual Improvement: The Kaizen Requirement

351

However, realistically it is quite often the case that fit cannot be measured until the person commences with the organisation. It can be several months after commencing employment that the new employees themselves can determine the degree of fit. The use of HRIS and TMS can help track applicants but should be a repository of observation, new employee achievement and progress. The introduction of the CTMS will lead to greater flexibility in recording and reviewing relevant data and this will not be dependent specific servers or computers. A range of technology can be used to access and update the material so that information is almost instantly available anywhere, anytime. Selection Kaizen was discussed in terms of the different characteristics and types of Kaizen. While Kaizen was originally used in the manufacturing industry it was argued that the principles are transportable and can be used in functions such as selection. In fact due to the importance of attracting and retaining new staff, a selection Kaizen team can be created with the purpose of continually improving the selection processes, as well as responding to external forces, such as the increased range of technology that can be used to assist in selection. Senior management must be seen to be committed to Kaizen and be one of the members of the team.

11.14.

Review Questions

1. Why should the list of expectations of an employee at the time of selection be compared to the actual outcomes? 2. How can system feedback loops be used as a strategic development tool? 3. What part do inputs play in the selection system? 4. Can all staff turnover be prevented? 5. Should newly appointed staff be included in reviewing the selection processes? 6. Why should a complete evaluation of recruitment and selection be undertaken? 7. What is a transformation process? 8. How can those using the processes be evaluated? 9. What are external deterrents to effective selection? 10. How can person organisation and person job fit be evaluated? 11. What are the characteristics of Kaizen? 12. What are the types of Kaizen? 13. How can Selection Kaizen be used as a management development tool? 14. Why is it important for senior management to be involved in selection Kaizen? 15. Can Kaizen be effectively applied to talent acquisition?

11.15.

Learning Activities

1. Identify an organisation with which you are familiar. Ask the selection staff how they determine if selection has been successful. 2. Ask how they formally and informally evaluate the selection process? 3. Do they use a selection Kaizen approach to continually improve their performance? If not, why not?

Chapter 12

Evaluation and the Future Bernard O’Meara

Chapter Learning Objectives After reading this chapter and undertaking the review questions and case study you will: • Understand the role and purpose of evaluation • Understand the various types of evaluation • Appreciate how to evaluate the recruitment selection system with the broader community system • Appreciate the responsibilities associated with strategic recruitment and selection • Appreciate the need to research and keep informed • Appreciate the challenges that future practices will face

12.1.

Introduction

Chapter 11 highlighted the need for some types of evaluation to be fed into the feedback loops and finally into a continual improvement process so that future activities could be optimised. In these instances each (micro) individual attempt to select new staff can be analysed and evaluated to determine success. However, at the overall (macro) organisation level a different type of evaluation needs to take place. At this level all the individual evaluations form patterns and a determination can be made as to overall success of the recruitment and selection methods. As mentioned earlier, there are times when organisations will choose to fill vacancies even though the best person is not employed. At the micro level this might be deemed acceptable but if 10 staff are appointed this way out of 15 new staff, then two-thirds of appointees are acceptable only at a very basic level.

The Handbook of Strategic Recruitment and Selection: A Systems Approach Copyright r 2013 by Emerald Group Publishing Limited All rights of reproduction in any form reserved ISBN: 978-1-78052-810-6

354

Bernard O’Meara

An organisation appoints staff for a number of reasons including: • Getting an employee to do a job • Appointing future leaders • Filling gaps identified by a VRIO analysis Thus if 10 new staff only meet the first of the above three criteria, then the organisation may not be appointing future leaders or filling valuable gaps identified by conducting a VRIO analysis. Therefore, the organisation may achieve at best a marginal gain by only employing 5 new staff out of 15 to meet the other two criteria. The organisation ultimately employs staff to meet its strategic goals as well as more immediate goals. However, the achievement of strategic goals and needs is the key to long-term sustainable competitive advantage. Organisations build and allocate their resources around their strategies as these are paramount to success. Success is achieved by getting the right staff to do the right jobs. But it is the matching of the short-, medium- and long-term goals of both the organisation and staff that creates synergy and success. One needs the other; an organisation needs staff to achieve any desired outcomes and the calibre of the staff determines the degree of success.

12.2.

Evaluation

The term ‘evaluation’ can mean different things and the application of evaluation can also be different. McCoy and Hargie (2001) note that the definition and use of evaluation have changed over the years and continue to evolve into a multidisciplinary methodology. Evaluation was introduced into the public sector as a means of demonstrating transparent effectiveness in programmes offered in the education and health sectors. Where questions of the effectiveness, efficiency and impact of programs are raised, the process of evaluation is seen as a legitimate means of determining these. This is also the case with accountability, whereby those responsible for programmes are held accountable for the standards achieved via outcomes. The objective-based approach to evaluation is attributed to Tyler who outlined the process of evaluation in the 1940s where goals and objectives are defined and then evaluation measures whether these have been achieved (McCoy & Hargie, 2001). In essence this approach asked if the programme achieved what it set out to achieve. While this approach appears satisfactory, there are some issues that need to be considered. The most obvious issue is that the outcomes need to be defined at the outset and set before they can be achieved. If these are estimated, a degree of error is introduced and measurement may or may not be accurate. The second issue is related to validity; the evaluation measures must measure what they are supposed to measure this needs to be confirmed. The evaluation measures must be tested and confirmed before they are used as definitive measures.

Evaluation and the Future

355

This approach to evaluation has a focus on the outcomes which, as mentioned previously, need to be determined before the processes creating them are put in place. However, between determining the outcomes and creating ways of measuring the closeness of outcome expectations lies the transformation processes that actually lead to the outcomes. However, before going down this track, more fundamental issues need to be sorted out first, to name a few: • Why is it necessary to evaluate? • What is it hoped that the evaluation processes will achieve? • What will be evaluated? Evaluation has a purpose, although the purpose will vary from organisation to organisation and industry to industry. In the public sector, governments adopt transparent practices as they are held accountable for the allocation and use of public funding. In this case, the public seeks confirmation that the funding has been used wisely and in the best interests of the greater community. Accountability is achieved through evaluation. In the public and financial sectors auditor-general departments confirm that funds have been allocated as they were supposed to be and that programmes were introduced as intended. In the private sector, organisations are audited similarly to guarantee to stakeholders that the organisation has done what it was supposed to do. Financial and annual reports are forms of evaluation of outcomes against targets. Variances must be explained by management to the board, and the board must explain to shareholders and other stakeholders. Where the variances are negative, it is not uncommon for stakeholders and the board to hold the CEO accountable and to replace the person if warranted. Evaluation can have serious consequences. Small shop owners may have a different purpose than legal accountability. Instead, they may want to simply know what their expenses and income are, to determine their viability. Others may want to compare their business outcomes with other similar businesses in order to know how they compare across the industry.

12.2.1. Why Evaluate? Organisations evaluate their performances for different reasons as mentioned above. In the private-sector organisations are legally charged with maximising the investment of investors. Financial and accounting evaluation provides a means of determining if the business has been successful or not over the financial year. Hospitals may be evaluated on a range of health-specific criteria. These may include the waiting period for operations, the nurse/patient ratio, the level of care that can be provided and the amount of time patients spend recuperating. These are in addition to other evaluative tools such as keeping within budget and expenditure on government-related programs.

356

Bernard O’Meara

Consultancies may evaluate their businesses based on the level of new clients and revenue brought to the organisation. Such evaluation could also include determining the retention rate of existing clients, overall growth or contraction in response to national or global economic trends and staff turnover in addition to financial viability. Educational institutions may be evaluated on the number of students passing exams and moving to higher levels. They may also be evaluated on how well they meet the demands of contemporary society and expected future trends. An evaluation of staff qualifications and experience could also be undertaken. Airlines may be evaluated on the number of empty seats on each flight, the number of destinations they fly to and the number of passengers who keep flying with a particular airline. The safety record of individual airlines is paramount and the service they provide to their passengers may also be evaluated. In the case of large organisations, different forms of evaluation make their way into the broader community. These are reported in business magazines and journals and other media and help shareholders and portfolio investors to decide which industries and organisations to invest in. These organisations attract investors as they provide the best long term return on investment, have strategic focus on sustainability and are considered good corporate citizens—they are preferred employers. McCoy and Hargie (2001, p. 319) define the characteristics of evaluation in the following way: Firstly, there is a dichotomy between those researchers who consider that goals actually hinder evaluation and those who instead give priority to the needs and characteristics of stakeholders. Secondly, evaluation is not just an activity restricted to a retrospective analysis of programme effects. Rather, it plays a role in the design, implementation and ongoing monitoring of the programme. Thus, while the emphasis in the past has been an outcome, increasingly, process evaluation is also becoming significant. Attention is being focused not only on the end result of the programme, but also on the programme itself. Finally, there is an apparent relationship between evaluation and decision making. Evaluation provides information: The information can be used to determine if the program or business is effective. Measures are determined that allow stakeholders to understand how the business is functioning and if improvements can be made. Focusing solely on outputs rather than the processes that create them can lead to inaccurate perceptions. An evaluation of a large packaging manufacturer may show that it performed well during the Global Financial Crisis (GFC). This may be due to its excellence and quality of products but in fact it may be that the manufacturer did well because, even during a recession or GFC, people still buy food and beverages that need to be

Evaluation and the Future

357

packaged. Thus, performance may be a function of the industry the organisation operates in rather than indicating an exceptional organisation. The results of evaluation need to be carefully considered and a thorough understanding of what is being measured, how and why is important for the information to be correctly interpreted. Once the information is correctly interpreted, this can form the basis for change, decision making and investment or the allocation of organisational resources. Consider the example of a clothing manufacturer that employs the best possible staff but provides antiquated machines for the operators to use. Because of the slow speed of the machinery, deadlines are sometimes missed and the organisation runs three eight-hour shifts to meet its contractual obligations. The quality of the material used to create the clothing is of a very high standard but the old machinery causes tears, buttons fall off and the stitching is of a poor standard. A review of the business might show high employee costs (three eight-hour shifts), lots of overtime to meet timelines and a high number of customer complaints concerning levels of quality. The underlying issue is that the equipment staff are given to create garments, not the staff themselves. However, a cursory view of the outcomes may raise questions about staff competency rather than the outdated equipment. Evaluation provides information that needs to be analysed and properly understood before it is of significant use. The information gained needs to give an accurate overview of past and current performance and provide a sound basis upon which to make decisions about the future. Evaluation provides information that informs effective decision making and improvements—From a strategic perspective, the decision making includes the allocation of organisational resources to ensure desired future feasible outcomes.

12.2.2. What is it Hoped That the Evaluation Processes Will Achieve? Evaluation should result in relevant information about: • • • • • • •

The various components of a business The integration of these processes Aspects of a business that need improvement Aspects of a business that are no longer viable The effectiveness of the value-creation processes that lead to outcomes Where resources need to be allocated If the desired outcomes are reasonable

These are generic in nature and, as such, can be used across multiple types of organisations and public and private sectors. Evaluation is the equivalent of a health check that people have whenever they visit a medical practitioner. The information gained through evaluation attests to the wellbeing of an organisation and what it must do to improve its overall health.

358

Bernard O’Meara

However, while evaluation can provide information about the organisation as a whole, the different aspects to be evaluated may provide information about specific aspects of the organisation. In the case of the clothing manufacturer example used above, if a sufficient number of aspects of the organisation were evaluated, one or more of them would ideally identify the age of the equipment as the core issue to be resolved. It may be that new equipment could reduce overtime, improve quality and reduce the absolute dependence of operating three eight-hour shifts. Using the costing processes outlined in Chapter 9, the benefits to staff morale and engagement could be measured and would add another aspect of the organisation for analysis. The evaluation process needs to be integrative so that as many aspects of the organisation are measured and analysed. Evaluating different aspects of an organisation separately does not give an overall view of how well these components integrate and complement each other. Evaluation also provides confidence in the people and processes and provides assurance that the processes and outcomes are appropriate. Management and stakeholders need to have confidence in the organisation, what it does and how it does it and they need to be assured that these processes are appropriate. Evaluation can provide confidence in the evaluative processes and it can be used to assure stakeholders that the processes are effective and sensitive to cost increases. Thus, evaluation not only provides independent and verifiable measures, but it also provides a form of psychological support. When people have confidence in organisational strategies, systems and processes, they are more likely to be committed and engaged—a stronger psychological contract between staff and the organisation can develop. There is also an expectation that organisations will evaluate different parts of their organisations. Industry and employer associations frequently gather information about the organisations operating within the industry and publish this in a comparative format where various organisations can compare their relative performance. A comparison with industry averages or actual data is a relatively easy and cost effective way of determining how one organisation is performing compared to other similar organisations. However, a comparison of outcomes only is not necessarily appropriate without the context of how the outcomes were derived. It is more than possible that different organisations will achieve different outcomes simply because they do things differently. One organisation might invest heavily in high-quality IT equipment while another might be dependent on older equipment. Another organisation might employ an internal labour market while a rival may use an external labour market approach. Different organisations will target different segments of an industry, that is, one organisation will target the high-quality, high-cost segment of an industry while a rival may target the low-cost mass market. Industry comparisons provide indicative information which may not be successfully compared across individual organisations. The context or what led to the outcomes is just as important, if not more so, than the outcomes themselves. This inability to effectively compare evaluation

Evaluation and the Future

359

outcomes is the same with talent acquisition and management. It is not always possible to compare staff turnover or staff costs because different organisations will regard their staff differently and treat them accordingly.

12.2.3. What will be Evaluated? In the example of the clothing manufacturer, for the aged equipment to be highlighted as the cause of the key issues a related measure needs to be identified and analysed. Measures could include how much maintenance is required by each machine, how much time it takes to create a garment compared to using new equipment, what are the quality reports on all garments and all machines telling management and whether customers’ complaints are related to staff or equipment issues. Specific items need to be identified to measure specific outcomes. Performance is a very broad overarching term and an ‘evaluation of organisational performance’ means little. However, if a range of measures is used then a better understanding could be gained of the health of an organisation. Again, it is common for organisations to benchmark against industry standards, and in particular they will provide information that stakeholders want disclosed. Because the term performance can mean different things, organisations will usually provide annual reports that outline key performance indicators across the organisation. These can include financial reports, productivity, revenue growth or contraction, response to industry or external pressures such as the GFC, capital investment and infrastructure, assets, restructures, business acquisitions, community engagement, sustainability and of course, staff. Within these groupings (and others not listed) there are measures that indicate specific outcomes and provide better information. Tata, the massive vehicle manufacturer in India, purchased Jaguar and Landrover and in July 2013 announced it would enter the Australian vehicle market as other carmakers like Toyota and (GM) Holden begin to wind down operations. Tata could use the purchase of Jaguar and Landrover as evidence of measurable investment and growth strategies. Also, TATA could demonstrate both horizontal and vertical growth. It can target the low-cost mass vehicle market as well as the high end of the motor market through its acquisition of Jaguar and Landrover. It now competes internationally and in the domestic Indian market and can now produce a midrange of vehicles as well. These achievements are measures of Tata’s strategic plans: • • • • • •

Entering the international vehicle manufacturing market Accessing and using the research and expertise of Jaguar and Landrover Growth and expansion Launching into other markets such as Australia Increasing the ability to manufacture midrange vehicles Increasing horizontal growth

360

Bernard O’Meara

These are all measures of what Tata may be trying to achieve in its businesses. These are measurable outcomes and need to be highlighted as they impact across a range of areas across the Tata Corporation. But they demonstrate Tata’s growth and internationalisation strategies to stakeholders who can use these to determine Tata’s success in these areas. Thus, an evaluation of growth and performance would highlight these achievements as measurable outcomes that signify success. If these were omitted from reports on growth and performance, those reading an annual report would not appreciate the major achievements leading to growth and expansion. Each organisation needs to identify the outcomes and processes to be measured as they change with each organisation. A random selection of aspects to be measured and evaluated is akin to guessing, and each indicator to be evaluated needs to be determined and investigated to ensure it measures what it is supposed to measure. Strategically based organisations determine the combination of outcomes and processes to be evaluated so that a complete and thorough interpretation of the data can be gained. The information gained should be used to make informed decisions about improvements and changes that may be recommended. McCoy and Hargie (2001) note that previous researchers have distinguished between two types of evaluation, formative and summative. Formative evaluation is defined as an activity that takes place before and during programmes. Summative evaluation refers to the comparison between objectives and actual outcomes after the programme is completed. McCoy and Hargie (2001, p. 321) highlight the key issues in both formative and summative evaluation. These include: • • • •

Formation of goals and objectives Identification of measurement indicators Specification of the programme Cost-benefit analysis

The difficulty of setting goals before the programme is completed and has already been discussed, but it is concerning when McCoy and Hargie (2001) found that the process of setting evaluative measures was found to lack both formality and organisation. This led to a lack of evaluation of programs with stated outcomes to be measured and, curiously, an attempt to evaluate programs without outcomes to be measured. Often the research of evaluation practices used previously can shed light on whether the outcomes that were measured were appropriate or not. This is indicative of fit only, and before assumptions can be made, the context needs to be fully explored and understood. Once the context of evaluation is understood, performance indicators can be determined and appropriate forms of measurement constructed. Where inappropriate and inaccurate measures and goals are determined, the psychological state of evaluators may cause unnecessary disappointment. If the

Evaluation and the Future

361

outcomes and goals to be measured are incorrect, the measures will be equally misleading.

12.2.4. Analytic Evaluation The performance approach uses metrics to evaluate. These metrics are generally organisation-specific, such as the daily sales achievements of a department store or the number of goods produced. Inevitably they can include amounts of expenditure and income. Analytic evaluation allows actual outcomes to be compared to expected outcomes and the variance can be investigated accordingly Table 12.1. Analytic measures compare one thing to another. However, when the context of the outcomes is explored, a number of issues may be raised. The $15,660 sales per square metre is in a premier Westfield Shopping Centre in Sydney and is the highest sales figure of the 104 shopping centres in Australia, New Zealand, the United States, the United Kingdom and Brazil. The average sales per square metre in Australia and New Zealand is $9,900 and is a more realistic expectation for other shopping centres. The number of goods returned and the number of customer complaints may not be a consequence of staff engagement, but may be due to inferior garments being sold. The difference in the expected number of customers to be served, compared to the actual number, could be caused by a number of issues, including closure for refurbishing, the customer demographic and the customers’ perception of value for money. While analytic evaluations are common, the expectations and outcomes may vary for quite valid reasons. However, as analytics and the use of metrics are normal, many organisations use them because they have to, or because their competitors use them. Another common view, unfortunately, is that organisations not using and publishing their metrics may have poor financial or other circumstances they do not want the public to know about.

Table 12.1: An example of an analytic evaluation. Type of Metric Sales per square metre Number of sales staff Customer complaints per week Number of goods returned per week Amount of refunds per week Number of customers served per day a

The amount is based on report by Schlesinger, 2013.

Expected AU$15,660 6 12 8 $1080 367

Actual a

AU$8,300 8 16 30 $890.00 200

362

Bernard O’Meara

12.2.5. Intuitive Evaluation Another type of evaluation is the intuitive form of evaluation. The intuitive form is also sometimes called instinct and is based upon observation and experience of organisational staff. This approach is rarely used as the only means of evaluation; rather it is complementary to analytic evaluation. Intuitive evaluation is not the same as ‘gut feel’ or other intangibles. Instead, it is about reading the signals apparent in a business at the time. Similar to body language, people encounter different situations each day and unconsciously compare the situation to others they have encountered and use their judgment to determine how to approach the situation. Each day, small business owners evaluate the level of staff morale, impediments to productivity, client requirements, ability to meet deadlines and constraints on expenditure. In larger organisations, managers and team leaders undertake a similar number of evaluations as they plan their day and prepare for any contingencies. It is immediately obvious if staff are unusually quiet or if they are happy and laughing, if machines are operating effectively or if they are quiet and being repaired. If staff have been under a great deal of pressure, it may be no surprise when they take sick leave. An inability of staff to balance their work life and home life may be apparent through their tone of voice or their observable behaviour. These are everyday signals that people send to each other and receive from one another. Some people are better at detecting these signals and analysing them, while others may not notice these signals at all. Talent acquisition and talent management staff are generally trained to notice what others take no notice of or dismiss as having no meaning. This is not guesswork or vague notions; some people are better at drawing correct conclusions from the signals others send around them. It is not uncommon for organisations to use a fully integrated evaluation process. This includes both summative and formative evaluation as well as analytics and intuitive evaluation processes. While fully integrative evaluation is common, it still contains some areas of concern, particularly setting reasonable objectives. However, using a fully integrated evaluation process should lead to organisational staff becoming aware of potential variances before the program is evaluated. This allows corrective action to be taken once issues arise and the effectiveness of any intervention can then be calculated at the completion of the program. An ongoing evaluation is preferable to one that only reviews past performance.

12.3.

Evaluating Recruitment and Selection

The principles of evaluation have been explored and can be applied to a strategic recruitment and selection using a systems approach. As outlined in the previous section, evaluation can be undertaken at the organisational level as well as being used to evaluate each integrative component. An integrative evaluation approach

Evaluation and the Future

363

combining both summative and formative evaluation together with analytics and intuitive approaches can be successfully employed to evaluate these systems. At the strategic level, a systems approach to recruitment and selection can be evaluated by determining the effectiveness of the following: On an annual basis: • Did strategic talent acquisition fill gaps in the organisation’s VRIO analysis? • Did strategic talent acquisition add or create value for the organisation? • Did strategic talent acquisition enhance the organisation’s ability to achieve its strategic objectives? • Did any aspect of the organisation’s community profile impede selection? • Are sustainable recruitment practices effective? • Did organisational diagnostics raise any issues not yet resolved? • Is the prevailing management philosophy towards staff appropriate? • Is the organisation getting the right staff and optimising their performance? An annual evaluation answering the above questions can help determine if the organisation has useful talent that it did not have previously or if it could achieve more as a result of strategic talent acquisition than before. Is the organisation better off? While these are significant questions, they need to be addressed at the organisational level to determine if talent acquisition is doing what it should do and meets the organisation’s strategic needs. The conduct of a VRIO analysis and a competency gap analysis will highlight the human capital and competencies that the organisation needs for both current and future challenges. While it is relatively easy to determine if new competencies have been acquired, it may take months or even years to decide if the necessary human capital and potential has been acquired and successfully retained. In many instances the recruitment of staff is used to employ a person to do a specific job and the success of selection can be determined accordingly. But at the organisational level, an evaluation needs to occur to ensure that the new staff being sourced are meeting the needs of the organisation. This has impacts across the entire organisation as talent acquisition affects all organisational departments, sections and levels. Over a 12-month period a department may recruit several new staff and therefore there will be multiple effects to be considered. Measurable outcomes include: • Does the organisation have relevant talent that it did not have prior to talent acquisition? • Has the measurable talent bank increased? • Can a direct link be made between talent acquisition and achieving strategic objectives? • Does the organisation still lack significant human capital? • Was talent acquisition assisted by the organisation’s reputation or hindered? • Why do people want to work for the organisation? • How is the organisation better off as a consequence of talent acquisition?

364

Bernard O’Meara

• Has a more recent VRIO analysis been undertaken to update the level of human capital and the gaps therein? • Has human capital been acquired that allows the organisation to move into new or different areas and markets? However, as strategic recruitment and selection matches the short-, medium- and long-term needs of both the organisation and new staff, an inability to meet the needs of new staff will lead to higher rates of staff turnover. Thus a determination needs to be made if the needs of new staff are being met, within reason and other questions need to be asked and answered: • • • • •

Are new staff filling their job roles effectively? Are new staff meeting the needs of the organisation? Are new staff engaged and motivated? Is the organisation meeting the needs of new staff where possible? Are new staff referring friends or family for vacancies within the organisation? Measurable outcomes include:

• • • • • • • • • •

Turnover rate of new staff The amount of training required per employee Plateauing of the motivation and/or learning curve Quality of work output of new staff New staffs’ ability to meet timelines Integration of new staff into teams Feedback from mentors Impact on staff morale Effect of intense socialisation Effectiveness of orientation In terms of the system’s approach the following questions need to be answered:

• Is the organisation’s system effectively interacting with that of the broader community? • Are new staff being effectively introduced into the organisation system? • Are there any possible impediments between the organisation and its community such as poor communication, misperception or the inability to attract staff? • Are there any changes to the organisation’s understanding of systems that need to be considered? A systems approach allows staff to understand the complexity and uniqueness of organisations and the communities in which they operate. Therefore the effective interaction of the organisation and community systems needs to be understood and confirmed as being as effective as possible. Any barriers that arise impede communication and the smooth transfer of new staff into the organisation and need to be investigated.

Evaluation and the Future

365

Given the impact of talent acquisition on an organisation, it is necessary to confirm that the practices are effective from a variety of perspectives. Hence the suggestion to combine summative, formative, analytic and intuitive practices so that these questions are raised and answered throughout the use of talent acquisition practices. On each individual talent acquisition attempt the following need to be considered: • Job requirements — were the job requirements fully reviewed by appropriate staff, agreed upon and communicated to applicants? It is important for talent acquisition staff to fully understand the job and be able to explain it to applicants and answer their questions. • Human capital requirements — were the necessary human capital and potential requirements identified and fully agreed to by organisational staff? The desired human capital could be required immediately by the organisation or needed at some time in the future. In line with this, were appropriate training and education opportunities created for the successful applicant in order to further develop this human capital? Was a mentor made available and involved in developing the socialisation aspect of induction? • Supervisor and management involvement — were the supervisor and manager fully involved in all aspects of the selection and induction program? Was a list of induction experiences created and regular feedback given to the new employee? Did the supervisor and manager take ownership of the acquisition processes? • Creating a pool of suitably qualified applicants — was a suitably qualified pool of applicants able to be drawn from the immediate community? Was it necessary to draw upon candidates beyond the immediate community? Was this able to be done quickly? What was the most effective means of communicating with candidates, that is, social networking, staff referrals? Was there any evidence that the local community may not be able to provide suitably qualified staff in the future? • Use of consultants and outcomes — did the organisation choose to use an external consultant to attract applicants and provide a shortlist of applicants? Why was this course of action deemed necessary? Given the cost of using an external consultant was there a beneficial gain or return on investment? Did the consultant attract a sufficiently large enough pool of suitably qualified applicants? Was the quality of the shortlisted applicants of a high quality? Was the consultant knowledgeable on this industry or organisation? • Interview preparation — was all relevant information gathered prior to the interviews? If a panel interview was used, were all members fully briefed on what was expected of them, the questions to be asked and how to score or appraise different responses given? Was consideration given to the environment, such as comfortable seating, lighting and the elimination of noise and interruptions? Was there someone available in reception to greet each applicant? Was parking or other travel arrangements made and arranged with each applicant prior to the interview? Did each applicant know where to attend and at what time?

366

Bernard O’Meara

• Interview type — was the interview type appropriate? Did the applicants respond well to the type of interview and the style of the interviewer(s)? Was the interviewer able to answer all questions posed by the applicants? Was the interviewer able to establish a rapport with each applicant and put them at ease? Were facility tours or introductions to key staff arranged prior to the interview? Was the purpose of the interview explained to each applicant and an overview of the role they had applied for, given to them? Were applicants given the opportunity to ask questions? Were the applicants who were interviewed given an overview of the processes that would take place subsequent to the interviews? Were applicants given the approximate timelines from the interview to an agreed time when the successful applicant would commence? Was the interview structured or unstructured? Did a variation from set questions occur and if so why? Did the interview gain all the main relevant material from the applicants in order to make an informed decision about the suitability of each applicant? • Question types — was a sufficiently diverse range of questions used throughout the interview? Was each question job or organisation specific? Was each question free of any perceived discrimination? Was a rationale for each question determined and discussed prior to each interview? • Testing use and results — were any sorts of test used as hurdles before or after the interviews? What types of tests were used and was the reliability and validity of each verified and deemed appropriate? Was the job-relatedness of the tests verified and were they appropriate for this culture, industry and organisation? If personality or IQ tests were used, was there a clear and defensible rationale for their use? Were the results interpreted by a professional so that no misunderstandings occurred? Were they weighted appropriately along with all other selection aids used? • Remuneration competitiveness — was the remuneration range and/or benefits competitive and sufficiently attractive to applicants? Did any negotiation need to occur? Is the commencement salary and benefits commensurate with that of other staff, level of human capital and potential? Was any part of the wage or salary package inconsistent with wage and salary survey feedback? • Assessment Centre effectiveness — was an assessment centre used? Was a cost/benefit analysis undertaken to justify the use of this? Was the assessment centre considered effective? Were the outcomes of demonstrable benefit in determining applicant suitability? Were both organisation staff external expertise used to decide on the tasks to be used in order to draw out specific applicant characteristics? • Background checks — were background or reference checks made with the applicants’ approval? Were these of benefit and did they confirm the interviewer’s perceptions or did they conflict with perceptions? Was there any evidence that applicants had inadvertently misrepresented themselves or provided referees who would not be totally honest and objective? Were multiple background checks undertaken so that the results could be cross-checked for consistency?

Evaluation and the Future

367

• Development of career plans — did talent acquisition staff work with talent development staff to create an individual career map and program for the position? Was this modified once the interviews were completed and more known about the human capital and potential of the successful applicant? Do the potential career plans suit the needs of the applicant? Does the applicant have a clearly defined career path or do talent staff need to work with the person to create a realistic and achievable career path? • Development of succession plans — did talent acquisition staff understand the type and level of human capital required for the position? Was the position outlined in succession plans prior to the appointment of the new staff member? Did the succession plan need to be reconsidered following the appointment of an applicant? Did the expected human capital and potential match that of the person appointed to the job? Why was there any variance and how can this be reduced? • Degree of fit — how close was the degree of fit of the person appointed with the job requirements and organisational requirements? Was this checked against the expectations of the supervisor, manager, mentor, team members and other key staff? If there was any variance, why did this occur and what can be done to eliminate this in future selection practices? • Meeting applicant needs where possible — did the successful applicant clearly identify her or his short-, medium- and long-term career needs during the selection process? Did this change once the person was employed? Have meetings between the new staff member and the person’s mentor, supervisor and manager been organised in order to monitor and evaluate the person’s possible changes in career direction now that the person has settled into the job? It is not uncommon for people to discover other opportunities once they join an organisation. Thus it is common to monitor changes in career needs and to accommodate these where it is possible. However, if the new staff member’s expectations differ from what the organisation can offer, it suggests that the interview and other information gathering processes were not entirely successful. If the selection processes are effective there should be very few surprises once the new employee commences with the organisation? • Timeliness — if demographics are known and analysed, the organisation should have identified those in the community who may be suitable for the job and have communicated effectively with them by a variety of means. This should mean that vacancies should be filled in a timely and agreed manner. There is a balance between filling the vacancy quickly and taking time to appoint the right person. Each time a new person is appointed, the processes provide talent acquisition staff with an opportunity to gather further intelligence on the local demographic composition and other opportunities. However, this should not impede the timeliness of filling a vacancy.

368

Bernard O’Meara

The longer it takes to successfully appoint a person, the greater the cost to the organisation in overtime, outsourcing work or redistributing workloads amongst remaining staff. This can negatively impact upon morale and output as well. • Budget — the budget for talent acquisition in any organisation is not infinite. Experience should help determine a reasonable budget and in most cases it will be relatively straightforward in keeping within budget. However, the size and nature of the budget will vary depending on the vacancy being filled. It would be expected that filling an executive position would not only take time but a greater budget would be necessary to find the right person. At times, organisations spend a great deal of funds on appointing graduates. This is because organisations generally regard graduates as being future leaders and bringing potential with them. The issue of employability was discussed in previous chapters and organisations are prepared to invest in graduates as the return on their investment exceeds the initial costs. Many organisations find that graduates are not work-ready in that they need to understand business practices, hierarchy and culture. They bring skill and potential to a job and organisation, but in many cases they have not been employed previously in their professional career and have to learn expected behaviour, quality, output and interaction with other staff. Also the higher the level of staff turnover, the greater the cost will be to the organisation. Strategically based organisations spend more money upfront on talent acquisition and if they get this right then there will be less staff turnover and greater productivity. • Induction — at the completion of the induction period, the new employee should have a sound grasp of the job requirements. Where organisations provide a steep learning curve their staff will be more productive than if a flatter learning curve is employed. The role of the mentor should be evident in helping the new staff member to become more competent than would otherwise be the case. To be effective the induction needs to achieve its goals including the acquisition of new job skills. However, the intense socialisation practices should also be evaluated to ensure the new staff member is engaged and motivated. If the person is neither engaged or motivated, the root cause needs to be identified and eliminated where possible. • Number of referrals from current staff — the number of referrals from existing staff is an indication of how existing staff view the job and the organisation. The more internal referrals, the better the health of the organisation. This also means that existing staff are sufficiently engaged to recommend that friends and family apply for jobs with the organisation. If they were not happy with their role in the organisation they would not recommend that people work there. The number of referrals may also indicate that a healthy relationship exists between staff and their supervisors or managers. They are confident enough to make such recommendations in the belief that a strong relationship can be forged.

Evaluation and the Future

369

• Number of internal applicants — where a job is advertised both internally and externally the number of internal applicants can indicate the level of morale and confidence of staff. Staff will not always apply when a vacancy is advertised; however, if no staff applied for any internal vacancy then an evaluation would need to occur to determine why suitable staff were not applying for other internal positions. An evaluation of the number of internal applications or the lack thereof may not only require evaluation but may be subject to organisational diagnostics and the Kaizen or continual improvement processes. • Level of expectations — were the applicants expectations realistic and if not, why not? This is generally clearer once the successful applicant commences work with the organisation. However, applicant expectations can be determined during the interview and selectors can, at that stage, ensure that any expectations are realistic. • Is the organisation using the most appropriate labour market strategy? As discussed earlier, organisations can create or access a variety of labour market strategies and these can change over time. An organisation may decide that there is sufficient human capital within the organisation and develop an internal labour market rather than continually compete for talent in the open marketplace — or vice versa. A change in labour market strategy would need to be accompanied by cultural change and would require a more strategic approach. There would also need to be a change in strategy and in the way the organisation allocates its resources. However, the most effective labour market strategy may need to be reviewed occasionally in order to maintain a sustainable competitive advantage. Such a change would need to align with other organisational strategies as well. There are times, of course, when a change in labour market strategy is imposed externally, such as in the case of Saudi Arabia. Basheer (2013) stated that there were over two million Indians working in Saudi Arabia either legally or illegally. The Saudi government introduced a Nitaqat or three-month grace period for those not sponsored by a Saudi citizen to seek approved sponsorship, or return to India or possibly face time in jail. The Saudi Arabian government has created four levels of organisations. Those Saudi organisations with 40% of their workforce being Saudi citizens can continue to employee Indian nationals. Organisations with 12% 39% of their workforce being Saudi citizens will be able to employ fewer Indian staff. Those organisations with only 6% 11% of their workforce being Saudi citizens will need to employ more Saudi citizens. The Nitaqat heavily impactsthe labour market strategy employed in Saudi Arabia and also impacts the economy of India where large numbers of Indians return to India to seek employment. Alternatively, it is possible for these people to seek approved sponsorship in Saudi Arabia. These external social, economic and political imposts need to be accommodated and this will impact upon the evaluation process as organisations seek to use labour market strategies acceptable to the national government.

370

Bernard O’Meara

• Disability, equity and fairness — Far from discrimination, the evaluation should be based on fairness and equity, extended to those from minority. These groups are significant and represent a substantive part of the eligible workforce. It makes sense to ensure that these groups were not disadvantaged in any way but were made to feel welcome and inclusive by being treated objectively and fairly. Each attempt to acquire new staff is a learning opportunity that feeds into the Kaizen approach and ensures that any deficiencies or gaps are identified and remedied. In order for strategic talent acquisition to be effective, flaws or problems must be determined quickly so they have minimal impact of the current selection and they do not feed into future attempts to appoint staff. The preferred evaluation methodology is ongoing and becomes a normal part of the talent acquisition processes so they are not burdensome but spread over the practices. Kaizen and strategic thinking becoming embedded into the culture and practices of talent acquisition staff. Any efficient organisation would want to ensure that high standards are set and maintained and this requires analysis, evaluation and improvement where necessary. Compton et al. (2009) suggest a number of different aspects for evaluation, including the following: • Response time between the request to fill a vacancy is received to the time when the first applicant is ready for interview • The total time taken between receiving the request to fill a vacancy till the new employee commences work • The internal hire rate or the number of internal applicants appointed compared to the number of jobs vacant • Selection ratios such as the number of applicants interviewed compared to the total number of applicants Other components to be evaluated include: • • • • •

Number of external applicants hired Cost of advertising and its effectiveness Cost per employee hired Cost of talent acquisition staffs’ time Retention rate over 6 12 months

12.4.

Costings

The costs of strategic recruitment and selection were outlined in Chapter 10. However, it is usual for each attempt to select staff to be costed and compared to

Evaluation and the Future

371

budget. At the end of the financial year, a complete financial analysis is undertaken as it is with all other parts of the organisation. This is sound business practice. While the cost calculations have been outlined, the comparison of cost to budget occurs frequently. A cost benefit analysis can be calculated at the end of each financial year and includes a Return on Investment (ROI) discussed previously. However, if the talent acquisition section acts as an internal consultancy, then a complete analysis of costs and returns needs to be undertaken as if it was a standalone business. The costs will allow an evaluation of the various processes to be undertaken and these will feed into an overall evaluation. Earlier in this chapter, the contrast between analytic and intuitive evaluation was drawn. A number of points need to be considered when dealing solely with selection costs and expenses. The context of talent acquisition is important, as people are unpredictable and their performance and focus can change radically. In terms of undertaking a cost-benefit analysis, the development of human capital can take months or even years and the long-term benefit is difficult to link to the immediate costs of selection. This is similar to developing goodwill in a business, as it takes time to develop but can be of immense value once it comes to fruition. While every effort should be made to justify costs and highlight benefits of talent acquisition in practice it may not always be possible to show the benefits of investing in talent on a short-term basis. This requires an acceptance that human capital is not immediately obvious or useable but it takes time to develop. It is, therefore, up to the talent acquisition staff to highlight this misalignment between costs and benefits, so that there is a clear understanding of what HR accounting can provide and what it cannot provide in the short term. Khanna, Song, and Lee (2011) outlined the rise of Samsung from a local South Korean manufacturer with a distinctive Japanese basis to a global leader in its various markets. The success of the organisation is due to the vision, business strategy and commitment of Samsung’s second Chairman, Lee Kun-Hee. Lee understood that to take Samsung to the global arena, the organisation needed to understand Western business practices and to import and implement the best of these practices. In 1993, he sought the best practices in strategy formulation, talent management and compensation and introduced these into Samsung, creating a mix of Western and Japanese business practices. Khanna et al. (2011, p. 143) note that: “Execution of this mix-and-match strategy took three broad forms: • A formal process to identify, adapt, and implement the most appropriate Western best practices • Steady efforts to make Samsung’s culture more open to change by bringing outsiders in and sending insiders abroad • Intervention by Lee to protect long-term investments from short-term financial pressures”

372

Bernard O’Meara

This hybrid mix of Japanese and Western styles was extremely successful and Lee sought the input of employees as he introduced new approaches that conflicted with traditional Samsung ways. These approaches included: • The introduction of merit-based pay in preference to seniority-based pay • The introduction of a profit-sharing programme that included all staff, not just senior management • Replacing internal (specific) promotions with the appointment of external applicants with specialised knowledge or talent that would add value to Samsung • Sending international recruitment officers (IROs) abroad to familiarise themselves with foreign talent • Creating the Global Strategy Group (GSG) which consists of non-Korean graduates from around the world. The graduates spend two years in the GSG where they learn Korean language and culture before taking up positions within Samsung • Staff being identified as having potential are sent abroad to study and learn before taking up positions within Samsung as change agents • Staff returning from abroad disseminate information about how successful foreign companies operate and they advocate for and experiment with best practice Lee understood that long-term gains cannot be measured to the short-term. However, he realised that strategic recruitment and selection, talent management and talent retention drive organisational success. He successfully adopted a strategic perspective and was able to evaluate Samsung’s investment in people achievements over a longer time period. The results were outstanding and placed Samsung as a global leader and through people strategies, Lee ensured that Samsung met its strategic objectives. This was despite not being able to successfully evaluate in the short term. While different organisations will evaluate operational and strategic performance differently and separately to strategic talent acquisition, the latter feeds into the former. Strategic talent acquisition must result in the achievement of the organisation’s strategic objectives, if not in the short term then definitely over the long term as illustrated by the Samsung example. If it is found that strategic talent acquisition and investment in people strategies have not led to the organisation achieving its strategic objectives, then the evaluation will indicate that the approach has not been successful. Rather than abandoning this approach a re-evaluation of the strategy and its impact on the organisational system may indicate that there is still room for improvement. The Kaizen approach should lead to a continuous stream of improvements in response to external and internal pressures, trends and changes. The purpose of evaluation is to determine how appropriate and robust the strategic recruitment and selection approaches are. The second goal of evaluation is to

Evaluation and the Future

373

demonstrate a clearly defined link between strategic talent acquisition and the achievement of overall business oriented strategies. The aspects outlined in this text to be evaluated are: • Has the appropriate management philosophy been adopted or can it be modified to achieve a superior strategic outcome? • Should PM, HRM or SHRM be used in preference to the others? • Has the performance of the right staff been maximised to achieve profit or other desirable outcomes? • Has a resource maximisation strategy achieved its optimal outcomes? • Has investment in staff benefitted the organisation? • Have the right staff been retained? • Has a systems approach clarified the relationship between the organisation and it staff, its talent acquisition strategy and its environment? • Are the feedback loops providing sufficient information about the components of the talent acquisition strategy? • Have alternatives to strategic recruitment and selection been fully explored? • Has a truly strategic approach been adopted? • Has alignment between the organisation’s short-, medium- and long-term objectives been aligned with those of applicants and new staff? Has this been effective? • Has the organisation engaged in sustainable talent acquisition? • Have organisational diagnostics been fully utilised to eliminate barriers to the retention of new staff? • Has continual improvement occurred? All aspects of the strategic recruitment and selection strategy need to be evaluated. Do the parts work or not? If not, why not? What can be improved and how? Each component needs to be sufficiently robust to withstand rigorous evaluation and the outcomes need to clearly indicate the level of success, or lack of it. The information derived should provide the organisation with a strategic plan to achieving its future objectives through the staff it employs. Organisational goals such as quality, timeliness and achieving strategic objectives can be rooted in the new staff employed by the organisation. If the answers to the questions outlined in the chapter are negative for any reason, then the organisation needs to use the services of experienced staff to investigate the reason why the answer is negative. The evaluation and analysis continue till the root cause has been identified and successfully addressed. Table 12.2 shows a sample evaluation for a retail assistant who joined an organisation but left 6 months later. At the conclusion of such an evaluation there would be a list of actions to be taken to rectify the issues and a timeline within which to do this. As this is only an example, it does not cover every aspect of the new employee’s circumstances, both good and bad. However, a more thorough and extensive evaluation list would be expected.

374

Bernard O’Meara

Table 12.2: Sample evaluation. Activity

Industry Average

Tenure

Three years

Induction

One week

Reference Checks

On the job training

One week

Sales per week $3,000 per week Management NA potential

12.5.

Expectation

Actual Outcome

Reason for Variance

Five years

Left within six months

Varies

One day

Very good

Excellent

One week

One week

$2,500 per week Within five years

$3,600 per week Left within six months

Unrealistic expectations set, left to run shop by herself on her first day Not enough staff to cover the person Unable to speak to her former colleagues or supervisor Her manager left when the new employee started NA Misread potential

Summary

This chapter has discussed the role and purpose of evaluation as well as contemporary trends and directions. Each attempt to recruit staff should be evaluated in order to ensure that the recruitment is meeting the needs of the organisation and the job requirements. At the macro level the question to be answered is, did strategic recruitment and selection add value to the organisation? There are different reasons why organisations employ staff including the following: • Getting an employee to do a job • Appointing future leaders • Filling gaps identified by a VRIO analysis There is a purpose to recruitment and selection and evaluation aids in determining if the purpose has been achieved. Evaluation also help determine if the person appointed was the closet fit to the job and if a better fit could/should have been achieved. If a person is appointed who can do the job, but not add human capital to the organisation, then this may be counterproductive for the organisation — depending on why the organisation sought to employ an individual in the first place.

Evaluation and the Future

375

Organisations allocate their resources to those areas — and people — that will lead to achieving their strategic objectives. One needs the other; an organisation needs staff to achieve its desired outcomes and the calibre of the staff determines the degree of success. The term evaluation refers to the process where organisations determine the effectiveness, efficiency and impact of programs and activities it undertakes. It answers the question, ‘did we achieve what we set out to achieve?’. However, while evaluation sets out to measure the success of such activities it is not without concerns. Generic evaluation principles were introduced into the health and education sectors as a means of transparency in the use of public funding and to hold those overseeing these programmess for their outcomes. Objective-based evaluation is quite common but the outcomes to be measured need to be set before the programme is put in place. This leads to estimating the outcomes or at best basing them on previous outcomes and assuming there will be consistency and reliability. The outcome may include a degree of error and cannot be assumed to be accurate. Another problem with this is that the processes creating the outcomes need to be evaluated to ensure they are producing the desired outcomes. Thus achieving the right outcomes only occurs when the processes are appropriate while the actual outcomes achieved may or may not be appropriate. Both the public-sector and private-sector organisations are evaluated in a number of different ways. The most common forms of evaluation are accounting and financial reports which are reported at the end of the financial year. Different forms of media report financial data and CEOs and boards are held accountable for the results by the organisation’s stakeholders. Accountability is achieved through evaluation. Organisations use evaluation to confirm expectations but essentially they provide information that can be measured and compared to standards such as industry benchmarks. Virtually all industries have national or international employer associations that gather information about relevant organisations so they can compare their performance with like organisations in the same industry. There are a number of common evaluative tools such as financial performance, growth and return on investment. However, there are also a number of organisation-specific evaluative tools such as the number of empty seat on an airline; education institutions may be evaluated on the number of the number of students graduating or passing exams. The information gained through evaluation can also be used to inform decision making. Managers can use the information to help them improve areas of the organisation where measures can be determined. Improvements can lead to better performance and desired outcomes are more likely to be achieved. Evaluation also provides stakeholders with confidence that the organisation is moving in the right direction and it also provides assurance that what the organisation is doing what it should be doing. There is a psychological benefit to evaluation. The context of the items being measured is important. Examples were given that illustrated that two organisations operating in the same industry can achieve very

376

Bernard O’Meara

different outcomes for very valid reasons. This may simply be due to the organisations targeting different segments of the same market. Thus the outcomes to be measured will vary from organisation to organisation due to contextual differences. Formative evaluation is defined as an activity that takes place before and during programmes. Summative evaluation refers to the comparison between objectives and actual outcomes after the programme is completed. Two other forms of evaluation were discussed. The first was analytic evaluation, which relies on metrics being compared and analysed to determine if performance was effective or not. The second was intuitive evaluation, which relies on the observation skills of business practitioners and their ability to interpret the signals they receive from other staff and situations. It was recommended that a combination of both formative and summative forms of evaluation as well as analytic and intuitive forms allow a complete overview from a variety of perspectives. It was noted that these forms of evaluation can be used before, during and after the use of selection practices rather than all at the one time. Because of the impact of strategic talent acquisition its evaluation needs to be both thorough and complete. Like any other business function a complete review needs to be undertaken at the end of the year while formative evaluation takes place each time the organisation attempts to recruit new staff. On an annual basis the following questions need to be answered: • Did strategic talent acquisition fill gaps in the organisation’s VRIO analysis? • Did strategic talent acquisition add or create value for the organisation? • Did strategic talent acquisition enhance the organisation’s ability to achieve its strategic objectives? • Did any aspect of the organisation’s community profile impede selection? • Are sustainable recruitment practices effective? • Did organisational diagnostics raise any issues not yet resolved? • Is the prevailing management philosophy towards staff appropriate? • Is the organisation getting the right staff and optimising their performance? Each time selection is attempted, the following questions need to be answered in conjunction with others discussed throughout the chapter. • • • • •

Are new staff filling their job roles effectively? Are new staff meeting the needs of the organisation? Are new staff engaged and motivated? Is the organisation meeting the needs of new staff where possible? Are new staff referring friends or family for vacancies within the organisation?

12.6.

Review Questions

1. What is evaluation? 2. What are the different types of evaluation? 3. Why is it necessary to evaluate?

Evaluation and the Future

377

4. 5. 6. 7. 8. 9. 10. 11. 12.

How is the information gained from evaluation used? How does evaluation inform decision making? Is intuitive evaluation inferior to analytic evaluation? How can strategic talent acquisition be evaluated annually? What type of evaluation takes place each time new staff are employed? What outcomes are measured by evaluating talent acquisition? Why is it important for evaluation to foster confidence and assurance? What role will technology play in talent acquisition processes in the future? How can the relevant systems connected with talent acquisition be effectively evaluated? 13. Should disability, fairness and equity be evaluated? 14. Is a comparison between organisation outcomes and industry benchmarks always appropriate? 15. How important is talent acquisition to an organisation?

12.7.

Learning Activities

1. Identify an organisation with which you are familiar. Ask the staff to outline their evaluation practices with respect to talent acquisition. 2. Do they use a variety of evaluative tools? Are these sufficient and strategically oriented? 3. Are there any changes or variations you would recommend? Outline your rationale and the expected benefits.

References

Aarts, D. (2011). It’s a GR8 Way 2 Hire. Profit, 29(6), 59 60. Acevedo, J., & Yancey, G. (2011). Assessing new employee orientation programs. Journal of Workplace Training, 23(5), 349 354. Adams, S. (2011). Job interviewees’ most common mistakes. Forbes, 30th June, p. 29. Adams, S. (2011). More employers using social media to hunt for talent. Forbes, 13 July, p. 30. Agarwal, R., Grassi, W., & Pahl, J. (2012). Meta-SWOT: Introducing a new strategic planning tool. Journal of Business Strategy, 33(2), 12 21. AHRI Pulse. (2008). Love’ em don’t lose’ em. Retrieved from http://www.ahri.com.au/_data/ assets/pdf_file/0016/7540/2008_identifying_retention_strategies_that_work.pdf. Accessed on 4 May 2013. Akhtar, S. (2012). What to expect from across the table: 25 most frequently asked general interview questions. IUP Journal of Soft Skills, 6(1), 51 63. Alm, D. (2010). Equality and comparative justice. Inquiry, 53(4), 309 325. Ansoff, H. I. (1983). Towards a strategic theory of the firm. In H. I. Ansoff (Ed.), Business strategy (pp. 11 40). Suffolk: Penguin. Antonacopoulou, E. P., & Gu¨ttel, W. H. (2010). Staff induction practices and organizational socialization. Society and Business Review, 5(1), 22 47. Aon Hewitt. (2012). Aon Hewitt announces 2012 Best Employers. Press Release, 13 October. Applebaum, S., Hartel, V., & Shapiro, B. (1998). The developmental assessment centre: The next generation. Career Development International, 3(1), 5 12. Applebaum, S., Wunderlich, J., Greenstone, E., Grenier, D., Shapiro, B., Leroux, D., & Troeger, F. (2003). Retention strategies in aerospace turnover: A case study. Career Development International, 8(6), 270 282. Arevalo, J. A., & Aravind, D. (2011). Corporate social responsibility practices in India: Approach, drivers, and barriers. Corporate Governance, 11(4), 399 414. Arnett, B., & Madhavaram, S. (2012). Multinational enterprise competition: Grounding the eclectic paradigm of foreign production in resource advantage theory. Journal of Business & Industrial Marketing, 27(7), 572 581. Arnold, J., Silvester, J., Patterson, F., Robertson, I., Cooper, C., & Burnes, B. (2005). Work psychology (4th ed.). Essex: Prentice Hall. Arnulf, J., Tegner, L., & Larssen, O. (2010). Impression making by resume layout: Its impact on the probability of being shortlisted. Journal of Work and Organizational Psychology, 19(2), 221 230. Arthur, W., Woehr, D., & Graziano, W. (2001). Personality testing in employment settings: Problems and issues in the application of typical selection practices. Personnel Review, 30(6), 657 676.

380

References

Ashton, C. (2002). Re-engineering HR delivery at IBM. Human Resource Management International, 10(6), 9 12. Avazzadehfath, F., & Raiashekar, H. (2011). Decision-making based on human resource accounting information and its evaluation method. Asian Journal of Finance & Accounting, 3(1), 1–13. Backhaus, K. (2003). Importance of person organization fit to job seekers. Career Development International, 8(1), 21 26. Banerjee, B., Browne, M., Fulop, L., Lilley, S., & Linstead, S. (2004). Managing Strategically. In S. Linstead, L. Fulop, & S. Lilley (Eds.), Management and organization: A critical text. Hampshire: Palgrave. Bangerter, A., Roulin, N., & Konig, C. (2012). Personnel selection as a signalling game. Journal of Applied Psychology, 4, 719 738. Barclay, J. (2001). Improving selection interviews with structure: Organisations’ use of “behavioural” interviews. Personnel Review, 30(1), 81 101. Barney, J., & Hesterly, W. (2006). Strategic management and competitive advantage. New Jersey, NJ: Pearson. Basheer, K. P. M. (2013). Saudi Arabia’s Nitaqat blues. The Hindu Business Line, 30 June. Retrieved from www.thehindubusinessline.com/saudi-arabias-nitaqat-blues/article4866385. ece?homepage = true&css = print. Accessed on 15 August 2013. Bass, B., & Barrett, G. (1979). People, work and organizations (2nd ed.). Boston, MA: Allyn and Unwin. Bassey, B., & Tapang, A. (2012). Capitalized human resources costs and its influence on corporate productivity: A study of selected companies in Nigeria. International Journal of Financial Research, 3(2), 48 59. Bate, P. (1994). Strategies for cultural change. Oxford: Butterworth-Heinemann. Bazerman, M., Mannix, E., Sondak, H., & Thompson, L. (1990). Negotiator behaviour and decision processes in dyads. In J. Carroll (Ed.), Applied psychology and organizational settings. New Jersey, NJ: Lawrence Erlbaum. Becker, G. (2008). Human capital: The encylopaedia of economics. Library of Economics and Liberty. Retrieved from http://www.econlib.org/library/enc/humancapital.html. Accessed on May 4, 2013. Becker, G. S. (2008). Human capital. In The concise encyclopaedia of economics (pp. 1–5). Liberty Fund Inc. Berscheid, E., & Regan, P. (2005). The psychology of interpersonal relationships. New Jersey, NJ: Pearson. Birt, J., Chalmers, K., Byrne, S., Brooks, A., & Oliver, J. (2012). Accounting Business reporting for decision making (4th ed.). Milton, Ontario: Wiley. Borokhovic, K. A., Parrino, R., & Trapani, T. (1996). Outside directors and CEO selection. Journal of Financial and Quantitative Analysis, 31(3), 337 355. Boud, D., Cohen, R., & Walker, D. (2002). Using experience for Learning. Buckingham: The Society for Research into Higher Education and Open University Press. Boud, D., Soloman, N., & Symes, C. (2003). New practices for new times. In D. Boud & N. Soloman (Eds.), Work-based learning: A new higher education. Buckingham: The Society for Research into Higher Education and Open University Press. Boud, D., & Walker, D. (1993). In the midst of experience: Developing a model to aid learners and facilitators. In R. Harris & P. Willis (Eds.), Striking a balance: Adult and community education in Australia towards (p. 2000). Adelaide: University of South Australia. Boudreau, K., & Lakhani, K. (2013). Using the crowd as an innovation partner. Harvard Business Review, 91(4), 60 69.

References

381

Branine, M. (2008). Graduate recruitment and selection in the UK. A study of recent changes in methods and expectations. Career Development International, 13(6), 497 513. Bratton, J., & Gold, J. (2007). Human resource management: Theory and practice (4th ed.). Hampshire: Palgrave McMillan. Bray, M., Waring, P., & Cooper, R. (2011). Employment relations. North Ryde: McGrawHill. Breaugh, J., & Starke, M. (2000). Research on employee recruitment: So many studies, so many remaining questions. Journal of Management, 26, 405 434. Brockett, J. (2012). Olympian Task G4’s problems were in training and vetting candidates, not in the original recruitment campaign. People Management, 1 August, p. 9. Brody, R. G. (2010). Beyond the basic background check: Hiring the ‘right’ employees. Management Research News, 33(3), 210 223. Brough, P., Johnson, G., Drummond, S., Pennisi, S., & Timms, C. (2011). Comparisons of cognitive ability and job attitudes of older and younger workers. Equality, Diversity and Inclusion: An International Journal, 30(2), 105 126. Brown, P. (2005). The evolving role of strategic management development. Journal of Management Development, 24(3), 209 222. Burbach, R., & Royle, T. (2010). Talent on demand? Talent management in the German and Irish subsidiaries of a US multinational corporation. Personnel Review, 39(4), 414 431. Burke, R. (2008). Building more effective organisations: A primer. In R. J. Burke & C. Cooper (Eds.), Building more effective organisation. Cambridge: Cambridge University Press. Caproni, P. (2005). Management skills for everyday life. The practical coach (2nd ed.). New Jersey, NJ: Pearson. Carlopio, J., Andrewartha, G., & Armstrong, H. (2005). Developing managerial skills. Sydney: Pearson. Carroll, A. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497 505. Cascio, W., & Boudreau, J. (2011). Investing in people: Financial impact of human resource initiatives. New Jersey, NJ: Pearson. Catanzaro, D., Moore, H., & Marshall, T. (2010). The impact of organizational culture on attraction and recruitment of job applicants. Journal of Business & Psychology, 25(4), 649 662. Cazals, M.-P., Almundever, B., & Fraccaroli, F. (1995). Social support, coping strategies, and psychological well-being among young people awaiting employment. In J. M. Peiro´, F. Prieto, J. Melia, & O. Luque (Eds.), Work and organizational psychology: European contributions of the nineties. East Essex: Taylor & Francis. Cekada, T., Helmrich-Rhodes, L., Minnick, W. D., Nelson, E., & Wachter, J. K. (2012). Job offer acceptance. Guidance for young SH&E professionals & those considering a career move. Career Development, 27(57), 50 57. Chan, H. L., Ko, A., & Yu, E. (2000). Confucianism and Management. In O. H. M. Yau & H. C. Steele (Eds.), China business: Challenges in the 21st century. Hong Kong: The Chinese University Press. Chandrakumara, A., & Sparrow, P. (2004). Work orientation as an element of national culture and its impact on HRM policy-practice design choices. International Journal of Manpower, 25(6), 564 589. Cheese, P. (2010). Talent management for a new era: What we have learned from the recession and what we need to focus on next. Human Resource Management International Digest, 18(3), 3 5.

382

References

Chi, C. G., & Gursoy, G. (2009). How to help your graduates secure better jobs? An industry perspective. International Journal of Contemporary Hospitality, 21(3), 308 322. Chiu, R. K., Luk, V. W., & Tang, T. L. (2003). Retaining and motivating employees: Compensation preferences in Hong Kong and China. Personnel Review, 31(4), 402 431. Ciampi, J. (2012). Top 5 resume mistakes. Successful Meetings, 61(4), 12. Clonts, C. (2012). Keeping in touch with former employees ensures access to valuable talent pool. Power Engineering, 116(7), 12 13. Clutterbuck, D. (2005). Succession planning: A development approach. Development and Learning in Organizations, 19(5), 11 13. Cole, M. S., Rubin, R. S., Field, H. S., & Giles, W. F. (2007). Recruiters’ perceptions and use of applicant re´sume´ information: Screening the recent graduate. Applied Psychology: An International Review, 56(2), 319 343. Compton, R., Morrissey, W., & Nankervis, A. (2009). Effective recruitment and selection practices (5th ed.). Sydney: CCH. Connor, K. T. (2009). Delighting in positive discrimination Or “Discernment”: A true case history. The Diversity Factor, 17(3), 1 8. Corsello, J. (2012). Maximising talent management through the cloud. Human Resource Management International Digest, 20(4), 27 30. Cosh, A., Fu, X., & Hughes, A. (2012). Organisation structure and innovation performance in different environment. Small Business Economics, 39(2), 301 317. Crawford, R. (1991). In the era of human capital. New York, NY: Harper Collins. Creedy, J., & Whitfield, K. (1992). Opening the black box: Economic analyses of internal labour markets. Journal of Industrial Relations, 34(3), 455 471. Crumpley, J. (2002). Interviews that win jobs. Pharmaceutical Technology North America, 26(12), 107 110. Curtis, S., & Wright, D. (2001). Retaining employees The fast track to commitment. Management Research News, 24(8/9), 59 64. Cusins, P. (1994). Understanding quality through systems thinking. The TQM Magazine, 6(5), 19 27. Datta, D., & Guthrie, J. (1994). Executive succession: Organizational antecedents of CEO characteristics. Strategic Management Journal, 15(7), 569 577. Datta, D., Guthrie, J., & Rajagopalan, N. (2002). Different industries, different CEOs? A study of CEO career specialization. Human Resource Planning, 25(2), 14 25. Davies, M. (2012). Win the job you want. New Zealand Apparel, 45(6), 23. Davis, A. (2013). Stress not being stressed enough. Employee Benefits News, 27(5), 20 21. Davison, H. K., Maraist, C., & Bing, M. N. (2011). Friend or foe? The promise and pitfalls of using social networking sites for HR decisions. Journal of Business & Psychology, 26(2), 153 159. Davison, R. M., Wagner, C., & Ma, L. C. K. (2005). From government to e-government: A transition model. Information Technology and People, 18(3), 280 299. Dawson, M. (2003). Developing consultancy skills for experienced HR specialists at shell people services: Modular program brings business benefits. Human Resource Management International Digest, 11(1), 40 42. Dessler, G. (2013). A framework for human resource management (7th ed.). New Jersey, NJ: Pearson. Dipboye, R. L. (1982). Self-Fulfilling prophecies in the selection-recruitment interview. Academy of Management Review, 7(4), 579 586. Dipboye, R. L. (1992). Selection interviews: Process perspectives. Cincinnati, OH: SouthWestern.

References

383

Dixit, A., & Skeath, S. (1999). Games of strategy. New York, NY: Norton & Company. Domeyer, D. (2007). Tell me about yourself. OfficePro, 67(1), 5. Dudley, R. (2011). A letter from our group chief executive. Retrieved from http://www.bp. com/sectiongenericarticle800.do?categoryId = 9036148&contentId = 706. Accessed on 11 October 2012. Dumaine, B. (1993). What’s so hot about outsiders? Fortune, 128(14), 63 67. Durst, S., & Wilhelm, S. (2012). Knowledge management and succession planning in SMEs. Journal of Knowledge Management, 16(4), 637 649. Ehiyazaryan, E., & Barraclough, N. (2009). Enhancing employability: Integrating real world experience in the curriculum. Education + Training, 51(4), 292 308. Elmore, B. (2012). A re´sume´ that reflects the real you. Baylor Business Review, 31(1), 56 57. Fair Work Act. (2009). The Fair Work Act. An Act of the Commonwealth Parliament of Australia No. 28 of 2009. Commonwealth of Australia. Fair Work Ombudsman. (2010). Fair work information statement. Commonwealth of Australia. Retrieved from http://www.fairwork.gov.au/fair-work-information-statement/ pages/defa... Accessed on 20 November 2012. Families and Work Institute. (2008). 2008 National study of employers. Retrieved from http:// familiesandwork.org/site/research/reports/2008nse.pdf. Accessed on April 4, 2008. Feichtinger, C., & Fink, G. (1998). The collective culture shock in transition countries Theoretical and empirical implications. Leadership & Organization Development Journal, 19(6), 302 308. Fischbach, A. F. (2008). Partnering for success. EC&M Electrical Construction & Maintenance, 107(10), 38 44. Foltz, C. B., Schwager, P. H., & Anderson, J. E. (2008). Why users (fail to) read computer usage policies. Industrial Management & Data Systems, 108(6), 701 712. Fox, C. (2000). Revolving door costs. The Australian Financial Review, 25 July, pp. 38 39. Frauenheim, E. (2011). More companies go with online tests to fill in the blanks. Workforce Management, 90(5), 12–13. Galpin, T., & Whittington, J. (2012). Sustainability leadership from strategy to results. Journal of Business Strategy, 33(4), 40–48. Garavan, T. N. (2007). Using assessment centre performance to predict subjective personorganisation (P-O) fit: A longitudinal study of graduates. Journal of Managerial Psychology, 22(2), 150 167. Gardner, D. G., & Deadrick, D. L. (2012). Moderation of selection procedure validity by employee race. Journal of Managerial Psychology, 27(4), 365 382. Gatewood, R. D., & Feild, H. S. (2000). Human resource selection (4th ed.). Orlando, FL: Dryden Press. Gatewood, R. D., & Feild, H. S. (2001). Human resource selection (5th ed.). Orlando, FL: Dryden Press. Gatewood, R. D., Feild, H. S., & Barrick, M. (2008). Human resource selection (6th ed.). Mason, Ohio: Thomson. George, J. M., & Jones, G. R. (2005). Understanding and managing organisational behaviour (4th ed.). New Jersey, NJ: Pearson. Gerber, M., Grote, G., Geiser, C., & Raeder, S. (2012). Managing psychological contracts in the era of the ‘new’ career. European Journal of Work and Organizational Psychology, 21(2), 195 221. Glytsos, N. P. (1999). The impact of demographic deterioration on labour balances in Greece. Journal of Economic Studies, 26(2), 130 158.

384

References

Goldman, D. (2001). Consumer republic. Adweek, New England Edition, 38(19), 22. Goldman, L., & Lewis, J. (2011). Vital statistics. Occupational Health, 63(3), 14 15. Gomes, D., & Neves, J. (2011). Organizational attractiveness and prospective applicants’ intentions to apply. Personnel review, 40(6), 684 699. Greenhaus, J. H., Seidel., C., & Marinis, M. (1983). The impact of expectations and values on job attitudes. Organizational Behavior and Human Peformance, 31, 394 417. Griffith, R. L., Chmielowski, T., & Yoshita, Y. (2007). Do applicants fake? An examination of the frequency of applicant faking behaviour. Personnel Review, 36(3), 341 355. Gurven, M., von Rueden, C., Massenkoff, M., Kaplan, H., & Vie, M. L. (2013). How universal is the big five? Testing the five-factor model of personality variation among foragerfarmers in the bolivian amazon. Journal of Personality and Social Psychology, 104(2), 354 370. Guthrie, J., & Datta, D. (1997). Contextual influences on executive selection: Firm characteristics and CEO experience. Journal of Management Studies, 34(4), 537 560. Guthrie, J. P., & Datta, D. K. (1994). Contextual influences on executive selection: Firm characteristics and CEO experience. Journal of Management Studies, 34(4), 537–560. Hackman, J. R., & Oldham, G. R. (1980). Work redesign. Reading, MA: Addison-Wesley. Haertel, E., & Fujimoto, Y. (2010). Human resource management (2nd ed.). French’s Forest: Pearson. Hakak, L. T., Holzinger, I., & Zikic, J. (2010). Barriers and paths to success. Latin American MBAs’ views of employment in Canada. Journal of Managerial Psychology, 25(2), 159 176. Harri, M. (1989). Reconsidering the employment interview: A review of recent literature and suggestions for future research. Personnel Psychology, 42, 691 726. Harrison, M. S., & Thomas, K. M. (2009). The hidden prejudice in selection: A research investigation on skin color bias. Journal of Applied Social Psychology, 39(1), 134 168. Harvey, L. (2007). Lights! Camera! Action! Career World, 149(19), 65. October 5. Haskins, M. E., & Shaffer, G. R. (2010). A talent development framework: Tackling the puzzle. Development and Learning in Organizations, 24(1), 13 16. Heneman, H. G., & Judge, T. A. (2003). Staffing organizations. Irwin, Boston: McGraw Hill. Hendricks, K., & Louw-Potgieter, J. (2012). A theory evaluation of an induction programme. South African Journal of Human Resource Management, 10(3), 1 9. Heneman, H. G., Judge, T. A., & Heneman, R. L. (2000). Staffing organisations (3rd ed.). Middleton: McGraw-Hill. Herzberg, F. (1966). Work and the nature of man. Cleveland, Ohio: World Publishing. Herzberg, F., Mausner, B., & Snyderman, B. (1959). The motivation to work (2nd ed.). New York, NY: Wiley. Herzberg, F. (1968). One more time: how do you motivate employees? Harvard Business Review, 46(January/February), 53–62. Hewitt, S. D. (2009). The secrets of successful succession planning in the new wave. Industrial and Commercial Training, 41(4), 181 186. Hills, A. (2009). Succession planning Or smart talent management. Industrial and Commercial Training, 41(1), 3 8. Hitt, M. A., Black, J. S., & Porter, L. W. (2005). Management. New Jersey, NJ: Pearson. Hofstede, G., & Hofstede, G. J. (2005). Cultures and organizations. Software of the mind. New York, NY: McGraw-Hill. Hosoda, M., & Stone-Romero, E. (2010). The effects of foreign accents on employmentrelated decisions. Journal of Managerial Psychology, 25(2), 113 132.

References

385

Hosoda, M., & Stone-Romero, E. (2012). The effect of Hispanic accents on employment situations. Journal of Managerial Psychology, 27(1), 347 364. Huffcutt, A., Van Iddeekinge, C. H., & Roth, P. L. (2011). Understanding applicant behaviour in employment interviews: A theoretical model of interviewee performance. Human Resource Management Review, 21(4), 353 367. Hunt, J. (1974). Managing people at work. Berkshire: McGraw-Hill. Hunt, S. D., & Madhavaram, S. (2012). Managerial action and resource-advantage theory: Conceptual frameworks emanating from a positive theory of competition. Journal of Business & Industrial Marketing, 27(7), 582 591. Hurley-Hanson, A. E., & Giannantonio, C. M. (2006). Recruiters’ perceptions of appearance: The stigma of image norms. Equal Opportunities International, 25(6), 450 463. IBM. (2012). IBM investments. Retrieved from http://www-07.ibm.com/ibm/au/exportsi.html. Accessed on 10 October 2012. India Career Guide. (2009). Interviewing advice. India Career Guide, pp. 77 78. Ivancevich, J. M., Konopaske, R., & Matteson, M. T. (2005). Organizational behavior and management (8th ed.). Boston, MA: McGraw-Hill. Jacobs, D. L. (2013). Five top resume turnoffs. Forbes.com, 19 February, p. 21. Retrieved from http://www.forbes.com/sites/deborahjacobs/2013/02/19/five-top-resume-turnoffs/. Accessed on 18 March 2013. Jamieson, S. (2008). The legal context for human resource management. In H. de Cieri & R. Kramar (Eds.), Human resource management in Australia. Sydney: McGraw-Hill. Jaw, B.-S., Ling, Y.-H., Wang, C. Y.-P., & Chang, W.-C. (2007). The impact of culture on Chinese employees’ work values. Personnel Review, 36(1), 128 144. Jelf, G. S. (1999). A narrative review of post-1989 employment interview research. Journal of Business and Psychology, 14(1), 25 58. Jiang, T., & IIes, P. (2011). Employer-brand equity, organizational attractiveness and talent management in the Zhejiang private sector, China. Journal of Technology Management, 6(1), 97 110. Johnson, A., Winter, P., Reio Jr., T., Thompson, H., & Petroska, J. (2008). Managerial recruitment: The influence of personality and ideal candidate characteristics. Journal of Management Development, 27(6), 631 648. Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692 724. Kahn, W. A. (1992). To be fully there: Psychological presence at work. Human Relations, 45(4), 321 349. Kampmann, C. E. (2012). Feedback loop gains and system behaviour (1996). System Dynamics Review, 28(4), 370 395. Kassim, N., Ramayah, T., & Kurnia, S. (2012). Antecedents and outcomes of human resource information system (HRIS) use. International Journal of Productivity, 61(6), 603 623. Kausel, E., & Slaughter, J. (2011). Narrow personality traits and organizational attraction: Evidence for the complementary. Organizational Behavior & Human Decision Processes, 114(1), 3–14. Keenan, A. (1995). Graduate recruitment, the single European market, and the euromanager of the future: Recruitment practices of British and french organizations. In J. M. Peiro´, F. Prieto, J. L. Melia, & O. Luque (Eds.), Work and organizational psychology: European contributions of the nineties. East Sussex: Taylor & Francis. Keever, S. (2008). Behavioral-based interviewing: Taking the guesswork out of interviewing. NACE Journal, 1(October), 30 63.

386

References

Kerr, S., Landauer, S., & Lelon, E. (2008). Maximise the value of leadership development: Key questions (and some answers). In R. J. Burke & C. L. Cooper (Eds.), Building more effective organisation. Cambridge: Cambridge University Press. Khanna, T., Song, J., & Lee, K. (2011). The paradox of samsung’s rise. Harvard Business Review, (July/August), 41(4), 72 74. Kharif, O. (2012). Finding job applicants who aren’t looking. Bloomberg Businessweek, 17 December, pp. 41 42. King, S. (1998). Graphology: Writing on the wall. Management Development Review, 7(5), 26 28. Klehe, U.-C., Kleinmann, M., Hartstein, T., Melchers, K., Konig, C., Heslin, P., & Lievens, F. (2012). Responding to personality tests in a selection context: The role of the ability to identify criteria and the ideal employee factor. Human Performance, 25(4), 273 302. Knez-Riedl, J., Mulej, M., & Dyck, R. (2006). Corporate social responsibility from the viewpoint of systems thinking. Kybernetes, 35(34), 441 460. Knudstrup, M., Segrest, S. L., & Hurley, A. E. (2003). The use of imagery in the simulated employment interview situation. Journal of Managerial Psychology, 18(6), 573 591. Korte, R., & Lin, S. (2013). Getting on board: Organizational socialization and the contribution of social capital. Human relations, 66(3), 407 428. Lazear, E. P. (1998). Personnel economics for managers. New York, NY: Wiley. Leitch, S., & Davenport, S. (2011). Corporate identity as an enabler and constraint on the pursuit of corporate objectives. European Journal of Marketing, 45(9), 1501 1520. Lenartowicz, T., & Johnson, J. (2007). Staffing managerial positions in emerging markets: A cultural perspective. International Journal of Emerging Markets, 2(3), 207–214. Leslie, D. (1999). Quality assurance and student work experience. Quality Assurance in Education, 7(4), 209 215. Leurer, M. D., Donnelly, G., & Domm, E. (2007). Nurse retention strategies: Advice from experienced registered nurses. Journal of Health Organization and Management, 21(3), 307 319. Levesque, J. D. (1996). Recruiting, hiring and retaining quality employees. Englewood Cliffs, NJ: Prentice Hall. Liddle, A. J. (2011). Learning environment. McD franchisees fill units with green-focused educational materials. Nation’s Restaurant News, 5 September, pp. 52 55. Little, B. (2010). Talent management and its technological partners. Industrial and Commercial Training, 42(7), 389 393. Long, G., Mawdesley, M. J., & Scott, D. (2009). Teaching construction management through games alone: A detailed investigation. On The Horizon, 17(4), 330 344. Lowell, B., & Joyce, C. (2007). Mobilizing minds. New York, NY: McGraw-Hill. Macdonald, L. (2012). A test of character. Employers Law, November, pp. 20 21. Mahmoudsalehi, M., Moradkhannejad, R., & Safari, K. (2012). How knowledge management is affected by organizational structure. The Learning Organisation, 19(6), 518 528. Mandhanya, Y., & Shah, M. (2010). Employer branding: A tool for talent management. Global Management Review, 4(2), 43–48. Marksberry, P., Badurdeen, F., Gregory, B., & Kreafle, K. (2010). Management directed kaizen: Toyato’s Jishuken process for management development. Journal of Manufacturing Technology, 21(6), 670 686. Markus, H. R., & Kitayama, S. K. (1991). Culture and the self: Implications for cognition, emotion and motivation. Psychological Review, 98(2), 224 253.

References

387

Matos, K. (2012). Ken matos, senior director of employment research and practice, families and Work Institute. Interviewed by Coombs, J. Retrieved from http://www.shrm.org/Research/ FutureWorkplaceTrends/Pages/MatosQandA.aspx. Accessed on 10 September 2012. May, D., Gilson, R., & Harter, L. (2004). The psychological conditions of meaningfulness, safety and availability and the engagement of the human spirit at work. Journal of Occupational & Organizational Psychology, 77(1), 11 37. McClearn, M. (2012). Sorry you asked…. Canadian Business, 85(4), 56. McCoy, M., & Hargie, O. (2001). Evaluating evaluation: Implications for assessing quality. International Journal of Healthcare Quality Assurance, 14(7), 317 327. McDaniel, M. A., Whetzel, D. L., Schmidt, F. L., & Maurer, S. D. (1994). The validity of employment interviews: A comprehensive review and meta-analysis. Journal of Applied Psychology, 79, 599 616. McGreevy, M. (2010). Do we reinvent ourselves actually? Industrial and Commercial training, 42(7), 366 378. McGurk, P. (2010). Outcomes of management and leadership development. Journal of Management Development, 29(5), 457 470. McKeown, T., & Lindorff, M. (2011). The graduate job search process A lesson in persistence rather than good career management? Education + Training, 53(4), 310 320. McNulty, Y. V., & Tharenou, P. (2004). Expatriate return on investment. A definition and antecedents. International Studies of Management & Organization, 34(3), 68 95. Miao, Z., Cai, S., & Xu, D. (2012). Exploring the antecedents of logistics social responsibility: A focus on Chinese firms. International Journal of Production Economics, 140(1), 18 27. Michael Page Employment Index Quarter 2. (2011). Retrieved from http://www.michaelpage. com.sg/sites/default/files/SG_E1_Q2.pdf. Accessed on 11 May 2013. Minbaeva, D., & Michailova, S. (2004). Knowledge transfer and expatriation in multinational corporations. Employee Relations, 26(5), 663 679. Mintzberg, H. (1983). Structure in fives: Designing Effective Organizations. Englewood Cliffs, NJ: Prentice Hall. Mohamad, M. (1995). Views and thoughts of Dr Mahathir Mohamad, the prime minister of Malaysia. In A. S. A. Hamid (Ed.), Malaysia’s vision 2020. Understanding the concepts, implications and challenges. Malaysia: Pelanduk Publications. Moser, K. (2005). Recruitment sources and post-hire outcomes: The mediating role of unmet expectations. International Journal of Selection and Assessment, 13(3), 188 197. Moskowitz, M., & Levering, R. (2013). The 100 best companies to work for. Fortune, Asia Pacific Edition, 4 February, Number 2, pp. 37 45. Mulders, D. E., Berends, P. A., & Romme, A. G. (2010). Dynamic capability and staff induction practices in small firms. Society and Business Review, 5(2), 155 169. Nair, P., & Xavier, M. (2012). Initiating employee assistance program (EAP) for a corporate: An experential learning. IUP Journal of Organizational Behaviour, 11(2), 67 76. Nandakumar, M. K., Ghobadian, A., & O’Regan, N. (2010). Generic strategies and performance Evidence from manufacturing firms. International Journal of Productivity and Performance Management, 60(3), 222 251. National Tertiary Education Union. (2013). ‘Probation’. NTEU. Retrieved from http://www. nteu.org.au/rights/conditions/probation. Accessed on 13 March 2013. Newell, S. (2005). Recruitment and selection. In M. A. Malden (Ed.), Managing human resources: Personnel management in transition. Oxford: Blackwell. Ng, E. S. W., & Burke, R. J. (2005). Person organisation fit and the war for talent: Does diversity management make a difference? International Journal of Human Resource Management, 16(7), 1195 1210.

388

References

Nielsen, S., & Nielsen, E. (2012). Discussing feedback system thinking in relation to scenario evaluation in a balanced scorecard setup. Production Planning & Control, 23(6), 436 451. Nielsen, T. (2008). Implementation of learning styles at the teacher level. Education + Training, 50(2), 155 166. Nilsson, S. (2010). Enhancing individual employability: The perspective of engineering graduates. Education + Training, 52(67), 540 551. NSDC. (2009). Human resource and skill requirements in the IT and ITes sector. Study on mapping of human resource skill gaps in India till 2022. NSDC. Retrieved from http:// www.nsdcindia.org/pdf/IT-ITES-Industry.pdf. Accessed on 30 October 2012. Nutter, R. W. (2013). Give yourself an edge during a job search. Healthcare Executive, 28(1), 76 79. O’Meara, B., & Petzall, S. (2007). Recruitment and selection of vice-chancellors for Australian universities. Ballarat: VURRN. Oberg, J. (2011). Moscow reopens for space tourism. Technology Review, 114(2), 65. Odom, C. L. (2013). Hiring the best candidate not the best resume. Financial Executive, 29(2), 61 63. Olve, N.-G., Wetter, J., & Wetter, M. (2000). Performance drivers. A practical guide to using the balanced scorecard. West Sussex: Wiley. Papadopoulou, A., Ineson, E., & Williams, D. (1996). The graduate management trainee preselection interview. Personnel Review, 25(4), 21 37. Parent, R., Roy, M., & St-Jacques, D. (2007). A systems-based dynamic knowledge transfer capacity model. Journal of Knowledge Management, 11(6), 81–93. Parry, E., & Wilson, H. (2009). Factors influencing the adoption of online recruitment. Personnel Review, 38(6), 655 673. Pech, R., & Slade, B. (2006). Employee disengagement: Is there evidence of a growing problem? Handbook of Business Strategy, 7(1), 21 25. Petzall, S., Abbott, K., & Timo, N. (2003). Australian industrial relations in an Asian context (2nd ed.). Melbourne: Eruditions. Petzall, S., Abbott, K., & Timo, N. (2007). Australian industrial relations in an Asian context (3rd ed.). Melbourne: Eruditions. Petzall, S., Selvarajah, C., & Willis., Q. (1996). Management: A behavioural approach. Melbourne: Longman. Phillips, A. P., & Dipboye, R. L. (1989). Corelational tests of predictions from a process model of the interview. Journal of Applied Psychology, 74(1), 41 52. Pollitt, D. (2008). Attitude programs starts a trend towards apprenticeships: Strong brand attracts building-service engineers of the future. Human Resource Management International Digest, 16(2), 23 25. Ponte, D., & Rizzi, C. (2010). Understanding socialization practice: Factors fostering and hindering its evolution. Society and Business Review, 5(2), 144 154. Porter, M. (1990). The competitive advantage of nations. London: MacMillan. Porter, M. (1996). What is strategy? Harvard Business Review, 74(6), 61 78. Prowse, P., & Prowse, J. (2010). Whatever happened to human resource management performance? International Journal of Productivity and Performance Management, 59(2), 145 162. Quagliato, P. B. (2008). The duty to negotiate in good faith. International Journal of Law and Management, 50(5), 213 225. Quinn, L., & Dalton, M. (2012). Leading for sustainability: Implementing the tasks of leadership. Corporate Governance, 9(1), 21 28.

References

389

Rajagopalan, N., Datta, D., & Guthrie, J. (2001). CEO specialization: The influence of industry characteristics. Academy of Management Proceedings & Membership Directory, pp. D1 D7. Rao, M. S. (2009). Is cutting development and training in a recession a good idea? Looking at the IT and ITeS sector in India. Development and Learning Organizations, 23(5), 7 9. Reuter, J. (2013). Five steps to a recession proof career. Industrial and Commercial training, 45(1), 60 63. Richter, H. (2007). Lights! Camera! Hired! Newsweek, 149(19), 65. Robbins, S., & Barnswell, N. (2006). Organisation theory, concepts and cases (5th ed.). Sydney: Pearson. Robbins, S., Judge, T. A., Millett, B., & Boyle, M. (2011). Organisational behaviour (6th ed.). Frenchs Forest: Pearson. Roberts, G., & Grimes, K. (2011). Return on investment. Mental health promotion and mental illness prevention. Ontario, FL: Canadian Institute for Health Information. Robson, I. (2005). Implementing a performance measurement system capable of creating a culture of high performance. International Journal of Productivity and Performance Management, 54(2), 137 145. Rodwell, J. (2005). The assessment of formal management development. A method, a baseline and the need to incorporate learning styles. Journal of Management Development, 24(3), 239 252. Roebken, H. (2010). Similarity attracts: An analysis of recruitment decisions in academia. Educational Management Administration & Leadership, 38(4), 472 486. Ross, S. (2013). Talent derailment: A multi-dimensional perspective for understanding talent. Industrial and Commercial Training, 45(1), 12 17. Rovoi, S. (2008). Recruiting high-tech managerial talents in China: An institutional perspective. Journal of Technology Management in China, 3(2), 181 193. Roychowdhury, I. (2012). Communication for employment: The hobbies section. IUP Journal of Soft Skills, 6(4), 67 72. Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600 619. Salter, N., & Highhouse, S. (2009). Assessing managers’ common sense using situational judgment tests. Management Decision, 47(3), 392–398. Sass, D. A., Seal, A. K., & Martin, N. K. (2011). Predicting teacher retention using stress and support. Journal of Educational Administration, 49(2), 200 215. Saunders, M. N. K., & Thornhill, A. (2006). Forced employment contract change and the psychological contract. Employee Relations, 28(5), 449 467. Savin-Baden, M. (2001). Problem-based learning in higher education: Untold stories. Buckingham: The Society for Research into Higher Education and Open University Press. Schaffer, M. B. (2008). The great gas pipeline game: Monopolistic expansion of Russia’s Gazprom into European markets. Foresight, 10(5), 11 23. Schlesinger, L. (2013). With specialty sales at $15,660 per square metre, Westfield Sydney and its luxury brand tenants set global performance benchmark. Property Observer. Retrieved from http://www.propertyobserver.com.au/retail/with-specialty-sales-at-$15660-per-square. Accessed on 24 July 2012. Scholarios, D., Lockyer, C., & Johnson, H. (2003). Anticipatory socialisation: The effect of recruitment and selection experiences on career expectations. Career Development International, 8(4), 182 197. Schramm, J. (2012). Hiring drives staffing challenges. HR Magazine, 57(5), 80.

390

References

Schwartz, G. M., & Shulman, A. D. (2007). The patterning of limited structural change. Journal of Organizational Change Management, 20(6), 829 846. Schwartz, T. (2011). Tony Schwartz, CEO, The Energy Project. Interviewed by Coombs, J. Retrieved from http://www.shrm.org/Research/FutureWorkplaceTrends/Pages/Schwartz QandA.aspx. Accessed on 10 September 2012. Sekiguchi, T. (2007). A contingency perspective of the importance of PJ fit and PO fit in employee selection. Journal of Managerial Psychology, 22(2), 118 131. Sengupta, D. (2009). Communication tools. Retrieved from http://www.thebusinessline.in/ bline/2009/03/13stories/2009031350290900.htm. Accessed on 2 April 2013. Service Canada. (2012). Retrieved from http://www.servicecanada.gc.ca/eng/lifeevents/jobs. shtml. Accessed on 11 October 2012. Shang, G., & Pheng, L. (2013). Understanding the application of Kaizen methods in construction firms in China. Journal of Technology Management, 8(1), 18 33. Shannon, C., & Weaver, W. (1948). The mathematical theory of communications. IL: University of Illinois Press. Shikari, A. (2011). Redefining employability. Human Capital, 15(6), 28 40. Singh, K. (2003). Strategic HR orientation and firm performance in India. The International Journal of Human Resource Management, 14(4), 530 543. Smith, L. R. (2013). All aboard! Helping new grads navigate nursing. Nursing Management, 44(3), 8 9. Snipes, M., Cunha, T. M., & Hemley, D. D. (2011). An empirical investigation into the relationship between changes in the business cycle and the increase of suicide. International Journal of Social Economics, 38(5), 477 491. Soboleva, I. (2006). Corporate Social responsibility: Global context and Russian realities. Problems of Economic transition, 49(8), 82 95. Social Accountability International SAI. (2013). SA8000 standard. Retrieved from http:// www.sa-intl.org/index.cfm?fuseaction = Page.ViewPage&PageID = 937. Accessed on 29 June 2013. Society for Human Resource Management. (2012). Examining the relationship between turnover, average tenure, hr investments. Retrieved from http://www.shrm.org/research/ benchmarks/documents/turnover%20by20%type_final.pdf. Accessed on 11 May 2013. Spector, R. (2013). 10 re´sume´ revising tips. Public Relations Tactics, 20(2), 22. Spegel, N. M., Rogers, B., & Buckley, R. P. (1998). Negotiation: Theory and techniques. Chatswood: Butterworths. Spencer, L. (1986). Calculating human resource costs and benefits. New York, NY: Wiley. Sprogue, J., & Elkjaer, B. (2010). Induction Organizational renewal and the maintenance of status quo. Society and Business Review, 5(2), 130 143. Steen, A., Welch, D., & McCormack, D. (2011). Conflicting conceptualizations of human resource accounting. Journal of Human Resource Costing & Accounting, 15(4), 299 312. Stone, R. (2008). Human resource management (20th ed.). Milton, Ontario: Wiley. Sugarman, L. (1993). Life-span development: Concepts, theories and interventions. London: Routledge. Sullivan, J. (2007). Paper, please. Workforce Management, 15475565 10/22, 86(18). Tasker, J. (2004). Engagement equals productivity. Personnel Today, 10 May, pp. 8 9. Taylor, F. (1947). Scientific management. New York, NY: Harper. Tennant, M. (1993). Psychology and adult learning. London: Routledge. Teo, S., Lakhani, B., Brown, D., & Malmi, T. (2008). Strategic human resource management and knowledge workers. Management Research News, 21(9), 683 696.

References

391

The British Institute of Graphology. (2013). Specialist services. Retrieved from http://www. britishgraphology.org/. Accessed on 6 March 2013. The Hiring Site. (2012). Survey: Treat candidates well (your business depends on it). Retrieved from http://thehiringsite.careerbuilder.com/2012/06/20survey-treat-candidates-well-yourbusiness. Accessed on March 6, 2013. Thomson, J. (2004). Talent takes its tips from the top. BRM, 26(43), 64–65. Thompson, L. F., & Aspinwall, K. R. (2009). The recruitment value of work/life benefits. Personnel Review, 38(2), 195 210. Tierney, L. (2013). The top five limiting beliefs about succession planning. The CPA Journal, 83(4), 11. Trice, H. M., & Beyer, J. M. (1993). The cultures of organizations. New York, NY: Prentice Hall. Ullah, M. (2010). A systemic approach of conducting employee selection interviews. International Journal of Business and Management, 5(1), 106 112. Unknown. (2007). China’s increasingly stressed-out execs. Fortune International (Europe), 155(2), 14. Retrieved from http://web.ebscohost.com/ehost/detail?sid = a5b5cfb5-91c947ae-9fdl-a4c6b28741ce%. Accessed on 27 April 2013. Unknown. (2013). High staff turnover a problem for most Chinese firms. China Times, Social section, page 1, 4 May. Retrieved from http://www.wantchinatimes.com/news-subclasscnt.aspx?id = 20130206000095&cid = 11.... Accessed on 4 May, 2013. Van Aken, E., Farris, J., Glover, W., & Letens, G. (2010). A framework for designing, managing, and improving Kaizen event programs. International Journal of Productivity and Performance Management, 59(7), 641 667. Van Birgelen, M. J. H., Wetzels, M. G. M., & van Dolen, W. M. (2008). Effectiveness of corporate employment web sites. How content and form influence intentions to apply. International Journal of Manpower, 29(8), 731 751. van Gigch, J. P. (1974). Applied general systems theory. New York, NY: Harper & Row. Van Steenwyk, J. (2008). Using tests to screen employees. Journal of Financial Planning Nov/ Dec 2008 Practice Management SOL, 5–10. van Tonder, C. L. (2011). Discerning the unique in the universal: The notion of organisation identity. European Business Review, 23(23), 632 654. Varma, A., Toh, S. M., & Pichler, S. (2006). Ingratiation in job applications: Impact on selection decisions. Journal of Management Psychology, 21(3), 200 210. Viljoen, J., & Dann, S. (2000). Strategic management. Planning and implementing successful corporate strategies (3rd ed.). Frenchs Forest: Longman. Vincent, A., & Ross, D. (2001). Personalise training: Determine learning styles, personality types and multiple intelligences online. The Learning Organization, 8(1), 36 43. von Walter, B., Wentzel, D., & Tomczak, T. (2012). The effect of applicant-employee fit and temporal construal on employer attraction and pursuit intentions. Journal of Organizational Psychology, 85(1), 116 135. Waddell, D. M., Cummings, T. G., & Worley, C. G. (2011). Organisational change, development & transformation. South Melbourne: Cengage. Wade, J. B., O’Reilly., C., & Pollock, T. G. (2006). Overpaid CEOs and underpaid managers: Fairness and executive compensation. Organization Science, 17(5), 527 544. Walker, S. (2011). People make libraries: The interview process and beyond. The Bottom Line: Managing Libraries, 24(1), 41 45. Wang, H., & Hong, Y. (2009). China: Technology development and management in the context of economic reform and opening. Journal of Technology Management, 4(1), 4 25.

392

References

Wanous, J., & Reichers, A. (2000). New employee orientation programs. Human Resource Management Review, 10(4), 435–452. Weekley, J., Ployhart, R., & Baughman, K. (2006). The structure and function of human capital emergence: A multilevel examination of the attraction–selection attrition model. Academy of Management Journal, 49(4), 661–677. Whalen, T., & Gates, C. (2010). Watching the watchers: Voluntary monitoring of infosec employees. Information Management & Computer Security, 18(1), 14 25. Whitacre, T. (2007). Behavioral interviewing Find your STAR. Quality Progress, 40(6), 72 73. Wickham, M., & O’Donohue, W. (2009). Developing employer of choice status. An employment marketing mix. Organisation Development Journal, 27(3), 75. Wickramasinghe, V. (2007). Staffing practices in the private sector in Sri Lanka. Career Development International, 12(2), 108 128. Wickramasinghe, V., & Wickramanayake, N. (2013). Expectations and experience: IT jobs in offshore software development and commercial banks in Sri Lanka. Information Technology & People, 26(1), 50 76. Wilderom, C. P. M., van den Berg, P. T., & Wiersma, U. J. (2012). A longitudinal study of the effects of charismatic leadership and organizational culture on objective and perceived corporate performance. The Leadership Quarterly, 23(5), 835 848. Wilson, R. (2010). Technology brings the search committee right to your living room. Chronicle of Higher Education, 56(34), 1 4. Wood, J., Zeffane, R., Fromholtz, M., Weiesner, R., Creed, A., Schemerhorn, J., … Osborn, R. (2010). Organisational behaviour. Core concepts and applications. Milton Queensland: Wiley. Woodside, A. (2006). Advancing systems thinking and building microworlds in business and industrial marketing. Journal of Business & Industrial Marketing, 21(1), 24–29. World Association for Cooperative Education. (2013). Retrieved from http://www.waceinc. org/global_institutions.html. Accessed on 19 March 2013. Worrall, L., & Cooper, C. (2001). Management skills development: A perspective on current issues and setting the future agenda. Leadership & Organization Development Journal, 22(1), 34 39. Wright, P. M., Lichtenfels, P. A., & Pursell, E. D. (1989). The structured interview: Additional studies and a meta-analysis. Journal of Occupational Psychology, 62, 191 199. Yalabik, B., Howard, M., & Roden, S. (2012). The innovation game: Lessons in strategy and managing operations. International Journal of Operations & Production Management, 32(12), 1441 1459. Yau, O. H. M., & Steele, H. C. (2000). China business: Challenges in the 21st century. In O. H. M. Yau & H. C. Steele (Eds.), China business: Challenges in the 21st century. Hong Kong: The Chinese University Press. Yukl, G. (2010). Leadership in organizations. New Jersey, NJ: Pearson. Zeidner, R. (2009). Strategies for saving in a down economy. HR Magazine, February, 54(2), 26 33. Zhao, J., & Chen, L. (2008). Individualism, collectivism, selected personality traits, and psychological contract in employment: A comparative study. Management Research News, 31(4), 289 304. Zoltners, A. (2013). One-liners. Kellogg School of Management. Retrieved from http://www. kellogg.northwestern.edu/faculty/zoltners/htm/onelinerspr.html. Accessed on 17 April 2013.

Appendices Appendix A: Recruitment & Selection Summary Legal Issues -EEO, Discrimination

External -Where, when, how to advertise,

Analyse internal talent bank gaps and future needs

Reliability

Internal -Career Map -Succession External

Determine the reliability of interviews and tests to be used

Need to fill a vacancy occurs and approved

Validity Determine the validity of interview types and tests to be used

Decision-making Strategies Short, medium and long term needs of the organisation as well as determining job ‘fit’ Judgmental -Pure Judgment -Profile Interpretation -Judgmental Composite -Judgmental Synthesis Mechanical -Trait Ratings -Pure Statistical -Mechanical Composite -Mechanical Synthesis Combination of both

Job Analysis -Interviews -Questionnaires -Task Analysis Inventory -Position Analysis Questionnaire -Subject Matter Expert workshops -Critical Incidents Technique -Fleishman Job Analysis Survey -Functional Job Analysis Job Element Method

Relating KSAs to Job Tasks Prioritising KSAs Weighting KSAs Determining most appropriate form to measure candidates against KSAs ie Application form, interviews….

394

Appendices

Application Forms Training Evaluation Forms Weighted Application Blanks Biodata, Reference Checks

RECRUITMENT -Who to target -How to interest them -How to communicate with them -Determine if the right people are available and interested -Review Resumes against criteria -Interview, sell the role & company to quality candidates

Ability Tests -Mental Ability -Mechanical Ability -Clerical Ability -Physical Ability

Personality Assessment -Traits -Inventories -Behavioural

Assessment Centres & Performance Tests

Job Offer -Conditions, Terms -Salary, Wages and Career options

SELECTION Determine future talent Focus on Job Knowledge, behaviours, traits…… Interviews Structured Unstructured - Group Panel Computer (rec) Stress Hybrid Multiple Behavioural Situational - Multi Modal Question Techniques -Closed Open -Direct Probe Multiple -Leading Implied -Hypothetical Non Verbal Cues -Body Language Rating & Weighting responses Decision Analysis Matrices…

Evaluation -Candidate suitability -‘Fit’ with organisation -Systems Approach -Methodology -Feedback -Improvements

Appendices

Appendix B: Effective Strategic Recruitment & Selection Identifying Core Staff and Talent Gaps Competency Analysis.

Existing competencies and skills

Value

Rarity

Imitability

Organisation

Organisation’s future direction, Strategy, needs…

Deficiencies (to be offset by recruitment & selection)

Appendix C: Strategies to Acquire and Retain Talent Organisation talent needs

Recruitment & Selection

Individual Career Maps

Succession Plans

Training, Development, Talent mining, Talent farming.

Mobility Promotion

Experience Education

395

396

Appendices

Appendix D: Interview Guide

Position Candidate Date

Interview Panel

PREPARATION CHECKLIST: • Review the applicant’s re´sume´ and the relevant interview guide to ensure you are prepared. • Ensure you have the meeting room booked, it is tidy and there is water available for the candidate. OUTLINE FOR OPENING AN INTERVIEW: • Greet the applicant, giving your name and position. • Explain the purposes of the interview: ○ To acquaint the interviewer and the applicant. ○ To help the organisation make a fair decision. ○ To help the applicant understand the organisation and the position. • Describe the interview plan: ○ Brief review of past jobs/experience. ○ Behavioural–based questions to get specific information about those jobs/ experiences. ○ Overview of the team and the role. ○ Answer applicant’s questions about the organisation and the position. ○ Finally close with an explanation of next steps. • Indicate that you will be taking notes throughout the interview. PLEASE NOTE: Do not forget to complete the ‘Post-Interview’ Section located in the final pages of the interview guide.

Appendices KEY BACKGROUND REVIEW EDUCATIONAL BACKGROUND: Details of relevant education

Other education/training

EXPERIENCE / EXPERTISE: Detail current/most recent job. How did you get this job?

What are the major responsibilities/duties? Any change in responsibilities?

What aspects of the job do you gain the most knowledge and/or experience from? What do you like about your job? What do you not like? Reason for leaving?

397

398

Appendices

ROLE SPECIFIC / TECHNICAL: Add relevant technical question

Add relevant technical question

Add relevant technical question

Appendices

399

Target-driven Key actions Ability to structure, organise and plan • Has clear picture of the target and workload to achieve targets and breaks it down into achievable deadlines. Motivated and focused to portions achieve the end goal. • Sets sub-goals to ensure and measure success of achieving overall target • Aligns staff’s goals with the target and ensures they understand what is to be achieved • Strives to meet own personal goals and targets in life Questions: How do you ensure that you meet deadlines in your area of work? What systems do you have in place to ensure this? How do you know this is adequate? Have you had revenue targets in your previous role? How have you ensured that your staff’s goals are aligned with this? How have you ensured they have been met? What personal goals and targets have you placed on yourself in the past? Have you met these? How have you worked towards them? Anything you would do differently when chasing the next goal?

Exceeds Requirements

Meets Requirements

Does Not Meet Requirements

400

Appendices

Team work Willingness to participate as a full member of the team, of which he/she is not necessarily a leader, to accomplish team goals; effective contributor even when team is working on something of no direct personal interest

Key actions • Participates in team events and meetings • Makes contribution to team mates when discussing ideas and issues • Displays a keen interest and care in listening to team mates • Helps colleagues in times of need

Questions: Describe a situation in which you helped a peer or co-worker. What did you do? What was the outcome? Tell me about a time when you have needed work completed by someone that does not report to you, or perhaps not even within your department. How did you handle this situation? Did you get the work from them? Was it to the quality you needed? What is the relationship now? Tell me about a satisfying team working experience? Why was it satisfying?

Exceeds Requirements

Meets Requirements

Does Not Meet Requirements

Appendices Conscientiousness Takes responsibility for own actions and applies oneself to the work at hand.

Key actions • Utilises own skills to achieve the targeted result • Puts energy into the task and stimulates others • Prioritises workload to ensure deadlines are met

Questions: Tell me about a time when you had a heavy workload and were under a deadline to complete it. How did you manage the situation? What was the result? Could you have done it better? How do you measure success in your role? What have you done to meet your standards? How do you ensure ongoing performance? Tell me about a time when you were unsure how to handle a particular situation. How did you decide the course of action? What was the outcome?

Exceeds Requirements

Meets Requirements

401

Does Not Meet Requirements

402

Appendices

Conscientiousness Knowledge and understanding of the fundamental processes of business, their interaction and the impact of external and internal influences on decision making, growth and decline.

Key actions • Own activities, actions and decisions are made with business processes in mind • Follows and understands business processes and procedures • Presents information in a format that will be received well by other business-savvy contacts and clients

Questions: Can you give me an example of a sales tender process you have worked through? What were the key stages followed within this process? What were the challenges and achievements within the process? What would you change, if anything, of this process? Tell me about a time when you have completed a sale and had to work through the implementation of this sale. What did this include? What were the key objectives and milestones? Were there any challenges? What was the outcome and how did you measure the success of this?

Exceeds Requirements

Meets Requirements

Does Not Meet Requirements

Appendices Relationship building Ability to develop and sustain effective long-term business relationships with people at all levels, both within and outside the organisation

Key actions • Understands the importance of building relationships for the long term • Can identify • Key stakeholders • Gains and maintains trust and respect from key stakeholders • Ability to build rapport with people of all levels

Questions: How do you go about developing rapport and building relationships with clients? Can you give an example? Tell me about your most successful and or least successful client relationship. What contributed to/detracted from that success? Have you ever had to overcome resistance from a client to working with you and/or your organisation? How did you overcome that resistance?

Exceeds Requirements

Meets Requirements

403

Does Not Meet Requirements

404

Appendices

Planning and organising Developing programmes of action and structuring/arranging resources to accomplish individual and team objectives.

Key actions • Sets and meets deadlines and priorities • Co-ordinates events with multiple clients, suppliers and resources • Plans and manages time to achieve business goals • Keeps clear records of own activities and double checks the accuracy of information

Questions: Tell me about a time when you had more work than you could get through in one day. How did you decide what to do? What did you do about the excess? What was the end result? Tell me about a time when you missed a deadline on a project. What were the causes? What did you do? What were the consequences? Give me an example of a time when you had to co-ordinate an event/conference/ workshop/meeting that involved a number of people? How did you know where to start? What was the outcome? On reflection, would you do anything different next time?

Exceeds Requirements

Meets Requirements

Does Not Meet Requirements

Appendices MOTIVATIONS: What interests you about this role? This company?

What five things would you say motivate you? What de-motivates you?

If successful in gaining this role, what would you want and expect yourself to achieve in the first 3 months? After 18 months? Longer term?

405

406

Appendices

INTERVIEW WRAP-UP: • Give the candidate an overview about the role and the company. Include the daily duties required from this role.

Is there anything that we haven’t covered yet that you would like to add?

Do you have any further questions about the role or the organisation? Notes

if applicable

If you would be successful in obtaining the job, when would you be able to start? (If appropriate.)

What is your salary expectation for this role? (If appropriate.)

Appendices

407

INTERVIEW CLOSE: • Explain next stages in the recruitment process, including an estimation of timing. • Thank them for their time and escort them out. Ensure that you leave a positive impression — remember, they will talk to other people about their experience! POST-INTERVIEW INSTRUCTIONS • All parties on the interview panel should complete a separate interview guide. Once summary notes are completed, all should meet to discuss the conclusions and compare notes. • Please complete the evaluation sheet once you have agreed on the suitability of this person for your role. INTERVIEW EVALUATION: Assessment Area or Competency

Exceeds Requirements

Meets Requirements

Does Not Meet Requirements

Technical knowledge and skill Target-driven Teamwork Conscientiousness Commercial awareness Relationship building Planning & organising Motivational fit

Definite Hire

Potential to Hire

Do Not Hire

Please communicate your decision with HR as soon as possible to ensure the remainder of the Recruitment and Selection process is followed.

Please note: All interview notes should be returned to HR for storage. This is to ensure we meet the requirements of the State and Federal laws.

408

Appendices

Appendix E: Question Types Ensure each question is relevant and non-discriminatory. • Use a variety of questioning techniques such as: Closed questions: How long did you work there? Open-ended questions: What experience have you had in Sales? Direct probes: You said you did not like the work. Can you give me examples of what you did not like? Multiple questions: Did you enjoy the work? Were the hours long? What did you achieve in the role? (Avoid the use of multiple questions.) Leading questions: This would surely have made you angry?

A Typical Interview Question Sequence • For the introduction and relaxing the applicant, use closed non-threatening questions. • As the candidate relaxes and understands the recruitment and selection processes to be used use open-ended question types. • As more information comes from the applicant, use direct probes. • As rapport is established and the applicant is comfortable, move to leading questions as required. • If the applicant becomes uncomfortable with some question such as ‘How did you get on with your boss?’ change question type and focus on question such as ‘How long did you say you worked there?’ Once the applicant relaxes, repeat the question that made the person uncomfortable. • Give regular feedback to the applicant to show you are listening and fully understanding what the applicant is telling you. • As the interview winds down, return to open-ended questions such as ‘Do you have any questions for us?’ • Finish with an overview of the process from here. In cases where the applicant is clearly unsuitable, the interview can be politely terminated.

Appendices

409

Appendix F: Reference Check Candidate Name: ________________________________________________________ Position Applied For: ____________________________________________________ Referee Name: __________________________________________________________ Referee Position: ________________________________________________________ Company Name: ________________________________________________________ Contact: _______________________________________________________________ 1. What was your working relationship with the candidate?

2. Please confirm the employment dates.

3. Overall, how would you describe his/her performance? (Standard of Work?)

4. Can you outline what his/her technical skills are and levels of understanding for each? (High/Medium/Low.)

5. What were his/her major achievements?

6. What were his/her particular strengths?

7. Any limitations/development needs?

8. How would you describe his/her relationship with his/her clients/managers/ colleagues?

9. What environment/management style does he/she work best in?

410

Appendices

10. How does he/she work in an autonomous role?

11. How does he/she respond to working under high pressure?

12. Can you think of a problem situation he/she was faced with? What did he/she do to resolve it?

13. What motivates him/her? When have you seen him/her genuinely enjoying their work?

14. What does he/she not enjoy doing?

15. Describe his/her general attitude to work, career and industry?

16. What were his/her reasons for leaving? Would your re-employ him/her?

17. Other comments.

Our final questions relate to the Privacy Act principles. (These MUST be asked.)

You understand that I have taken notes regarding your comments today. You understand that should the candidate request access to their information including this reference, that I am obliged under the Privacy Act to provide this access.

Reference Check Completed by:

Date:

Appendices

411

Appendix G: Overview of a Targeted Re´sume´ A cover letter highlighting the competency base and strengths of the applicant in relation to the role requirements is provided as in the case of a traditional re´sume´. • A cover sheet that summarises the intention of the applicant such as a career goal. • Personal details including full name, address, telephone and mobile contacts as well as e-mail addresses. • Education details can highlight current education being undertaken, previous education programs successfully completed including major/minor sequences of study and average grade level achieved if possible. • Competencies (or sited in work history): Traits and competencies can be listed separately or included within the work history section. Competencies desired by employers include: Leadership Interpersonal and communication skills Works well in a team or alone Initiative, motivation and dedication Customer focus Commitment to personal and professional development Technical competence Goal/career driven Accuracy and timeliness Ability to accept responsibility and authority Capacity to delegate Other aspects that employers value are integrity, honesty, reliability and the degree of empathy that applicants have for others. When the applicant has limited work history, then the competencies and traits can be drawn from all areas of a person’s life to illustrate how they learn from experiences and challenge themselves. If a person has work experience, then the competencies and traits can be included in the work history section. However, this may become repetitive so separating them may be considered. In any case do not make statement such as ‘I can lead a team if required.’ Employers want evidence rather than unsubstantiated statement. However, an applicant could outline a case such as: • I have successfully displayed leadership capabilities in my areas of endeavour. This is evidenced by the following: Although I am employed on a casual basis I am required to lead a small customer service team as required.

412

Appendices I am captain of the tennis club. In college I led many team projects successfully. I work by myself at times and must open the store, serve customers, resolve any customer issues, bank the taking, close the store and order stock.

The essential part is to attempt to prove what you are saying by giving examples and show consistency. • Work history: The work history can contain key duties, achievements and may contain competencies and traits or these may be separated out. • Achievements across all aspects of a person’s life such as education programs successfully completed, sporting or personal achievements, work-based achievements (preferably quantifiable and verifiable), social achievements or things that you are proud of. • Referees: Where referees are required at least three referees should be nominated after seeking their permission. A representative sample of referees should be given across key aspects of the applicant’s life. It is surprising that graduates who have spent three years or more at a college or university fail to include an academic referee in their re´sume´.

Appendices

Appendix H: Where We Develop and Display Our Human Capital

Sport Team or individual sports

Work Social activities with friends, family, relations and colleagues

Our competencies, experiences, values, belief systems, preferences, aspirations, talent and potential

Teams, training, colleagues, aspirations

Other activities Charity work, civic duties volunteering

Education facilities Primary and secondary schools, colleges and universities, programmed learning, knowledge transfer

413

414

Appendices

Appendix I: Resume Writing Worksheet Worksheet For each employer complete the following: Employer: Tenure: Key Responsibilities: How did I add value to the role or task? What competencies did I display that made me successful in the role? What did I learn from the role? How did the role develop me as a person, both professionally and personally? What were my achievements in the role? List the key aspects from the above. Answer the same questions for academic activities, sporting and social activities. Include volunteer work, exchange programs…to reinforce consistent patterns of behaviour Try to show consistent competencies and traits across all your activities. Show how you developed as a consequence of the learning experience.

Appendices

Appendix J: Re´sume´ Types and Examples Traditional re´sume´ Generally used by those with substantial work history Contents: Personal details

Education details

Work history

Achievements

Referees

Identifies what the person has done and when

415

416

Appendices

Targeted re´sume´ Contents Cover letter

Cover sheet (career objective) Personal and contact details Education Human Capital (where these are separated) Work history (may include human capital) Achievements Referees

This is a typical approach but need not serve as a template. It demonstrates the clustering of information

Cover sheet (career objective) example

Appendices

417

Re´sume´ of Bernard O’Meara

I seek a challenging and rewarding position (in…) with a dynamic organisation committed to personal and professional development.

Targeted re´sume´ contents Personal and contact details Name: Address: Telephone (Home): Telephone (work): Mobile phone number: Email address: Relocation: In the pursuit of my career objectives I am willing to relocate as and when necessary. Mobility: I have my own reliable transport and can access other types of transport as required.

418

Appendices

Education Current education: Bachelor of XXX due to be completed in… Major sequences of study are: Minor sequences of study are: Average grade: Secondary education: Attended XXX college Average grade Competencies and Human Capital Main areas include: Leadership

Interpersonal and communication Able to work well in a team or alone Initiative, Motivation and Dedication Customer focus Commitment to personal and professional development echnical competence (in chosen career or desired job area) Goal/career driven Accuracy, timeliness Ability to accept responsibility, authority and delegate to others Other aspects: Integrity, Honesty, Reliability, Empathetic…

Your re´sume´ must contain evidence that you have the human capital you list.

Appendices

419

Do not make unsubstantiated assertions.

Examples Throughout my academic, sporting, work-based and other activities I have developed the following competencies and traits and would be pleased to discuss these in an interview. Leadership • Regularly adopt a leadership role in group work at (school/college/ university) • Vice-Captain of XXX team (2010 2013) • Frequently act as Check — out Supervisor at the local supermarket XXX Interpersonal and Communication • Evidenced through grades achieved for written and oral presentations at (school/college/university) • Train and induct new staff at XXX • As a mentor, I assist first year students at (school/college/university) through their initial transition stages Work history Current employer: Position: Tenure: Key responsibilities: (Here you need not specify the minor tasks of a role just outline some of the key components. Show how you added value to the role, what competencies you displayed in order to be successful in the role or outline how you developed new competencies because of the role. Show how the learning experiences developed you). The importance of wording Job Title: check out operator at a supermarket Responsibilities: Stock shelves, clean floors, handle cash, serve customers The above responsibilities could be more effectively worded such as: The key responsibilities include maintaining high levels of customer service, resolution of customer complaints, training and inducting new staff, filling in as

420

Appendices

supervisor when necessary due to my knowledge, experience and reliability. (Notice the hook in the outline) Achievements: • • • • • • • • •

Undertaking a course at (school/college/university) Raising funds for charity Helping friends as required Increased sales by XX% Promotion to XXX Feedback from customers, colleagues and employers Undertook an international exchange program to experience new cultures Awards, certificates… Overcoming personal challenges… These help tell the story about you and what is important to you.

References: List at least three at least three referees across your professional, personal and/or academic endeavours. Alternatively: References and references will be provided upon request. Analyse and evaluate the material in this Appendix and determine the negative aspects.

Appendices

Appendix K: Phone Screen Position Candidate Phone

1. What attracted you to apply for the position?

2. What do you know about the company?

3. Relevant qualifications.

4. Outline your relevant experience.

5. Current role, why are you looking to leave?

6. What skills and qualities will you bring to this role?

7. What are your career aspirations?

421

422

Appendices

8. What is your notice period?

9. What is your salary expectation? And notice period?

10. What is your availability for an interview?

Completed by Date Comments and Recommendation for next steps:

Glossary

Applicant: A person who has formally applied for a position by submitting a resume and has completed an application form. Applicants are clear about their intentions to be considered for an appointment with an organisation. Body Language: This refers to the signals sent by the way a person sits, uses eye contact, gestures, speaks and demonstrates other non-verbal cues. Body language can be viewed as either positive and supporting what is said or it can be negative and cast doubt on what the person is saying. Body language is identified by clusters of non-verbal cues, not individual signals. Candidate: A person who is eligible to apply for a vacant position but has not completed the organisation’s formal application procedures. Those people sourced by sourcing agencies remain candidates till they decide to formally apply for an available position. Curriculum Vitae (CV): A formal document that gives an in-depth overview of an applicant’s training, education, work experience, achievements, reporting relationships and other relevant information that may be required for an organisation to decide the level of ‘fit’ between the applicant and organisation. Demographics: This refers to the age, gender, education qualifications, earning capacity and geographical location of people. Organisations use both internal and external demographics to determine if they can generate a pool of suitable candidates for vacant positions. Development: A means of enhancing the capacity of staff via different strategies such as by providing training, education and learning opportunities. Such strategies are used to enhance personal and professional qualities that will benefit both the individual and the organisation. Discrimination: This refers to policies and practices whereby one or more individuals are treated differently to other people because of their age, gender, ethnicity and similar factors. Discrimination can take the form of direct or indirect actions but is illegal and counterproductive.

424

Glossary

Disengagement: The uncoupling of selves from work roles: in disengagement, people withdraw and defend themselves physically, cognitively, or emotionally during role performances. Economic/Profit model: A business practice used to minimise costs and/or maximise profit. The focus is on the outcome such as employing staff at lowest cost, increasing production volume or effectively serving the needs of clients. Thus organisations arrange themselves around cost or profit and staff or other resources are manipulated to achieve the desired outcome. Education: The use of formal and informal formats to help participants to learn, understand and use concepts far more intensely than in a training situation. Learning to use concepts aids staff to apply advanced techniques so that staff drive organisational strategy and ultimately success. Employability: Employability refers to both the hard and soft skills required by employees so they are able to fit the job easily and smoothly. Engagement: Engagement is a term that at times can be difficult to explain let alone measure. Engagement can be viewed from a psychological perspective as a choice that staff make. They decide to be engaged and fully involved in all aspects of the organisation and the job that is relevant. Evaluation: Evaluation is a process of analysing processes and outcomes and determining if they are effective or need to be improved. Exchange theory and negotiation: Throughout the recruitment and selection processes, applicants and selector will both try to extract sufficient information from the other so they can make a decision to proceed with the processes or cease involvement. There is an exchange of information and each party tries to leverage an advantage. Expatriates: This refers to people who move for periods of time (up to three years or more) to different countries but remain with the same employer. This can develop a deeper understanding of different cultures and awareness of different staff practices in different countries. It is an excellent learning exercise. Feedback loops: These are used in systems to evaluate the effectiveness of systems and their components. These may be Kaizen-based continual improvement methods to better match applicants with the organisation to lower costs, increase staff tenure and optimise the added-value that new staff may bring with them. Fit: This refers to how compatible an applicant is with either the job or the organisation or both. The closer the fit or match, the better.

Glossary

425

Human Capital: Human Capital Theory states that people have a broad range of knowledge, skills, attributes (KSAs) and future potential. Human Resource Management: Human resource practitioners undertake similar activities as a personnel manager. However, instead of seeking control and compliance they seek staff commitment to organisational goals. Insider/outsider Theory: This refers to senior management preference in appointing an internal applicant to a position where the organisation and its environment are stable. However, when entering new markets or geographical locations there is generally a preference to appoint an external applicant to a senior position. Internal Consultancy: An organisation may structure itself so that functions such as talent acquisition act as internal consultancies or businesses. Where this occurs the internal function is assessed in the same way as the performance of an external consultancy would be assessed. International Labour Organisation (ILO): The ILO is an international body that sets conventions that are recognised and implemented by countries. International Organisation for Standardization: The IOS is a body that administers the SA8000 which accredits organisations that comply with its standards in the protection of employee rights. Internships: An internship or student placement is where a university or college student works with an organisation in a professional capacity. The work quality of the internship is then assessed by academics and the student’s work-based mentor. Interview: A meeting between applicants and representatives of the organisation in a two-way exchange of information. At the end of the interview both the interviewee and interviewer should have sufficient information to decide if they wish to continue or withdraw from the remainder of the process. A variety of different interview types exist to meet different outcomes. Job Analysis: This is a means of finding the core components of a position. This involves determining the tasks (parts of a job) to be undertaken, the competencies required to successfully undertake and complete the tasks as well as the experience and knowledge needed by the job holder. Job Description: A document that outlines the tasks and job-specific expectations necessary for a job. It may also contain the responsibilities, qualifications and experience required to successfully undertake the job.

426

Glossary

Job Enlargement: This approach involves horizontal loading. In essence it involves adding additional tasks at the same level of responsibility to those already performed by the worker. Job Enrichment: Job enrichment involves the process of ‘vertical loading’ or building motivators back into the job with the hope of increasing job satisfaction. Job Evaluation: A means of determining the relative worth of one job compared to others in an organisation. Job Redesign: Job redesign involves the attempt to arrange tasks and duties to make jobs both more meaningful for employees and more efficient. Job Rotation: This involves systematic rotation of employees between different jobs with similar skill requirements. Job Sharing: This refers to the practice of two or more people sharing a job so that the job is not dependent on one particular person. Job Simplification: This involves the breaking down of larger jobs into their smallest and simplest parts. Simplified jobs become standardised, routine and repetitive. Kaizen: This is a set of activities that allow processes and outcomes to be analysed and improved where possible on an ongoing basis. Knowledge: In contemporary society, knowledge is more than the acquisition of fact or experience; it is a tradeable commodity in its own right. Labour Market: This refers to the internal or external structure of the workforce. Organisations that have an internal labour market structure develop and promote staff from within. An external labour market means that an organisation is able to compete for talent in an open market. Learning: Learning refers to the process of acquiring knowledge. This can be achieved by formal or informal means but leads to a person having more knowledge after learning than beforehand. Management Philosophy: This refers to an overarching philosophy of an organisation’s management or the views of individual managers regarding staff. At extremes ends management can view staff as an asset, liability or somewhere in between. Management philosophy can change in response to internal or external pressures exerted on the organisation. Mentors: A mentor is a person who works closely and socially with a new employee. The mentor is there to help the new employee settle into the job and the

Glossary

427

organisation, establish social bonds and to understand the culture and structure of the organisation. Organisational Diagnostics: This is a system whereby selectors review internal and external factors that may determine if a person joins an organisation or not. Organisational Diagnostics are used internally to identify and rectify any circumstances that may lead to decreased productivity, job satisfaction and engagement. Factors that lead to resignations must be resolved prior to appointing new staff. Preferred Employers: Organisations that meet ISO requirements and are listed on stock exchanges as socially responsible organisations. These organisations generally invest in their staff and develop them as their key resource. Such organisations are commonly mentioned in lists published by business journals, magazines and other forms of media. Psychological Contracts: A psychological contract is an unwritten agreement or understanding between an applicant and selectors or other staff. These determine levels of trust and confidence but if they are perceived as broken it can lead to staff resigning. Questions (role of): These are used to elicit desired information, to confirm information already available or to promote deeper opportunities of discussion. In general terms it is suggested that interviewers do no more than 20% of talking in an interview so that focus can be maintained on evaluating applicant responses to questions asked. A variety of different question types exist. Recruitment: The term used to identify and attract a pool of suitably qualified and eligible potential staff for vacant positions. This is the first time that an organisation uses information about its strategic needs and job requirements and communicates these to a target audience. This phase can include hurdles such as initial interview, the use of psychometric testing and shortlisting applicants to go to the selection phase. Reference Checks: This refers to the process whereby selectors, with the applicant’s permission, contact previous employers and other relevant people to confirm the applicants’ work history and other relevant details. This is a confidential process. Reliability: This refers to the consistency of a test or other form of assessment. Ideally if a person sat for the same tests at different times and places they would score the same and be considered reliable. Resource Maximisation: An organisational strategy that focusses on maximising the capacity of staff rather than on cost containment or high profit. This model centres on the view that if an organisation maximises the capacity of its staff through investment then natural by-products are low costs and higher profit. The focus is on

428

Glossary

the staff and integration of resources. People drive an organisation through their performance and if you optimise their performance and provide them with the appropriate tools such as technology, information, training and education, then no higher outcome (optimisation) can be achieved. Re´sume´: A re´sume´ is a condensed version of a Curriculum Vitae (CV). It may contain similar information to a CV but is a briefer overview of a person’s experience, achievements and previous career. Retention: Consists of strategies and practices to maximise the potential of an organisation to keep its staff. This can be done through a variety of means including adequate remuneration, promotion, experiential learning, training and education. Selection: The phase where a selected group of applicants (shortlist) are interviewed and may undertake psychometric testing, attend an assessment centre or undertake another mechanism that will help management decide on the best possible applicant to be appointed to the vacant position. Selection Criteria: Selection criteria are also referred to as KSAOs and performance factors. They outline the characteristics, work experience and qualifications that applicants need to successfully undertake the role for which they are applying. Social Media: This refers to networks such as Facebook, Twitter and other electronic sites that can provide information about material that individuals decide to upload and share with others. Staffing: The practices, guidelines, systems, processes and actions required to attract, develop and retain the right staff for an organisation. Strategy: A strategy is a long-term plan that has achievable and realistic goals. Organisations determine their strategies to achieve desired outcomes and allocate their resources, including staff, to achieve strategic goals. Strategies need to be effectively determined, monitored, changed when needed and evaluated. Strategy (Focus): This refers to a short-term approach. The term ‘strategy’ can be misleading as HR-focused strategies are quite different to sustainable strategies used for the purpose of staffing an organisation. An example of a focus strategy is where an organisation may seek to employ several staff within a given timeframe and budget. Thus the most cost effective and expeditious approach would be used and once all vacancies are filled, the focus strategy would cease. Sustainability: A series of strategies that allow organisations to engage in recruitment and selection practices that are long-term and beneficial to all involved such as organisations, communities, economies, environments, staff and potential staff.

Glossary

429

Systems Approach: This is used to identify the series of interrelated activities and processes between the components and its sub-components of a system or the impact of one system on another, that is, an organisation and its environment. SWOT: This refers to an analysis of an organisation’s strengths, weaknesses, opportunities and threats in order to optimise opportunities and strengths and to minimise weaknesses and external competitor threats. Talent Acquisition: This is a term that refers to an organisation’s search for new employees who possess a form of talent (creativity, innovativeness…) that an organisation needs to help it achieve its strategic goals. Talent Development: This refers to the formal and informal training and education provided to staff in order to develop their potential. Talent Management: Talent management refers to the process whereby the progress and performance of new staff is monitored. This also includes developing motivation and retention strategies to keep the employee for as long as possible. Testing: This refers to a group of activities that are used to learn more about an applicant’s cognitive ability, temperament, mechanical capability or other relevant job-related abilities. Training: This can be undertaken on the job or in formal or informal settings. The aim is to allow staff to acquire competencies that the organisation needs to be successful in operational settings. Turnover: Turnover refers to the number of staff who leave an organisation over a set period of time: monthly or annually. They can be used to determine areas of high staff turnover and can also be used as a comparison to industry standards to determine if a specific organisation is keeping staff longer or not. Validity: Validity refers to the ability of an activity to measure what it actually is designed to measure. A test designed to measure decision making must actually measure the decision-making capacity and to actually predict a person’s ability to measure decision making once employed. VRIO Analysis: A means of determining staff within an organisation who are valued by the organisation via objective assessment, have unique or rare competencies, networks or contacts that cannot be transferred to other staff by training alone. Such people are considered core to the survival of the organisation, which must, itself, be able to access and optimise the talents of such staff. Staff identified through a VRIO analysis are the staff most desired by competitor organisations and, therefore, sourcing consultants.

Index

Active listening, 115, 118, 129 130 Advertising, 76, 78, 80 81, 83, 85 86, 96 97, 99 100, 124, 154, 191, 295, 299, 311, 320 321, 330, 370 Applicants, 6, 8 11, 15, 19, 26, 31 33, 52, 54, 64 65, 68, 75, 78, 82 86, 92 95, 101, 103, 105 106, 108 123, 125 126, 129, 131 151, 154 155, 157 158, 160 166, 169 173, 175 179, 181 185, 187 197, 199 201, 203 229, 231 248, 250 257, 263, 266, 278 280, 284, 286, 312, 316, 324 326, 328 329, 332 335, 337, 339, 341 342, 344, 348, 350 351, 365 366, 369 370, 372 373 Assessment Centres, 131, 140, 142, 147 149, 160 161, 164, 166, 184, 192, 204, 311 312, 320, 329, 339 Balanced Scorecard, 327, 334, 346 Body language, 101 105, 107, 109, 111, 113, 115 121, 123, 125 127, 129, 132, 193, 206 207, 213, 226, 241, 362 Candidates, 6, 9 11, 28, 31, 37 38, 47, 74, 76 78, 84, 86, 96 97, 99, 108, 111, 114 115, 118, 120 122, 124 126, 132, 139, 151 153, 169 171, 176 177, 179 181, 191 192, 194 201,

204, 209, 211, 216, 220, 252, 299, 311, 315 316, 325 326, 328, 333 334, 350, 365 Communication, 6 7, 17, 20, 31, 39, 43, 45, 47 48, 51, 54, 63, 82, 89, 101 109, 111, 113, 115, 117 119, 121, 123, 125, 127 129, 136, 145 148, 158, 162, 165, 185, 198, 205, 210 211, 216, 219, 233, 239 241, 248, 250, 254, 266, 269, 278 279, 283, 289, 328 330, 333, 335 336, 343 344, 346, 348, 350, 364 Competency profiling, 57, 61, 73 75, 98, 142 Consultants, 7, 9 10, 40, 50, 62, 65, 70, 85 86, 96 97, 99 100, 134, 136, 151 152, 297 299, 311 312, 328 330, 348, 350, 365 Costing, 299, 311, 318 319, 321, 358 Full Labour Costs, 303 304 Human resource Accounting, 316, 322 Learning Curve, 302, 306, 312 Morale, 307 Separations, 309 Crowdsourcing, 152 153 Culture, 6, 9, 14 16, 30, 35 37, 39, 44 48, 52, 56 57, 59 61, 63 64, 75 76, 82, 85, 99, 102 106, 113, 132 133, 135 137, 156, 169, 196 198, 201, 212, 232, 238, 242, 246, 254,

432

Index 262, 264, 272 273, 283, 290, 297, 314 316, 326, 333 334, 336, 343, 345 346, 350, 366, 368, 370 372

Decision making, 4, 16, 39 40, 45 46, 52, 67, 93 95, 132, 137, 150, 196, 208, 211, 228, 244, 249 250, 299, 316, 356 357, 375, 377 Demographics, 9, 21, 25 26, 54 56, 64, 81, 326, 333, 367 Deterrents, 328, 331, 333, 350 351 Discrimination, 9, 66, 79, 86, 119, 122, 125, 127, 130 131, 134, 137, 143, 151, 158 159, 165, 198 199, 250 251, 333, 366, 370 Direct, 127, 159 Impact, 158 160 Indirect, 127, 159 Disengagement, 280 281 Employability, 91, 174, 176, 192, 210, 241, 368 Engagement, 20, 37, 49 51, 53 54, 193, 196, 207, 216 217, 241, 247, 249, 273 281, 297, 300, 314, 335 337, 339, 346, 348, 350, 358 359, 361 Environment, 4, 11, 16 17, 24 26, 29 32, 34 36, 38 40, 42, 44 45, 47 52, 54 55, 57, 64, 67 68, 82, 88 89, 107, 113, 129, 135, 147, 158 159, 174, 181, 188, 196, 200, 204, 207, 219, 233, 236, 241 242, 244, 267, 272 273, 281, 288, 294, 324, 332 333, 335 337, 343, 365, 373 Ethics, 34, 38, 52 53, 64, 142, 267, 276, 345 Evaluation, 9, 46, 66, 110, 122 123, 128 129, 138 139, 191 193, 195 196, 203 204, 206, 208, 224 225, 253, 255 256, 263, 300, 306 307, 318, 325, 329,

340 341, 345, 351, 353 363, 365, 367, 369 377 Exchange and negotiation, 162 164 Expatriates, 106 107, 128, 302 Feedback loops, 11, 26, 32, 59, 323, 325 327, 332 334, 336, 341, 346, 350 351, 353, 373 First Impressions, 113, 115 116, 122, 231, 233 235, 237, 239, 241, 243, 245, 247, 249, 251, 253, 255 257 Fit, 8, 10, 19, 22, 32, 47, 51, 65, 75, 77, 91, 94, 113, 133 136, 147, 149, 164, 170, 173, 179 180, 190, 194 195, 203 205, 211, 214, 232 233, 240 241, 244, 252, 263, 272 273, 287 288, 290, 298, 300, 306, 323, 325, 335 337, 350 351, 360, 367, 374 Person-job fit, 194, 306 Person-organisation fit, 149 Game theory, 131, 149 150 Human Capital, 4, 76, 89, 99 100, 161, 170 171, 173, 183 190, 198 200, 205, 210, 213 217, 221 223, 239 240, 242 243, 252, 254, 263, 269, 273 275, 277, 279, 284, 288, 290 291, 294, 297, 302, 307 310, 312 313, 315 326, 328, 330 331, 333, 338 339, 363 367, 369, 371, 374 Human Resource Accounting, 316, 322 Human Resource Management, 12, 15 16, 42, 126, 267, 288, 338 Induction, 9, 11, 26, 154 155, 157 158, 227, 262 263, 271 272, 274, 278 279, 282, 286 291, 299 300, 306 307, 311 313, 318, 323 324, 326, 328 330,

Index 335 337, 339 340, 345 346, 348, 350, 365, 368, 374 Onboarding, 263 Orientation, 263 272 Socialisation, 272 275 Insider/Outsider Theory, 123 Internal Consultancy, 294, 296 297, 320 322, 371 International Labour Organisation, 15 International Organization for Standardization, 53 Internet, 27, 73, 84 86, 96, 99 100, 125, 178 180, 191, 193, 198, 215 216, 229, 232 Internships and placements, 79, 173 175 Interviewers, 63 64, 93, 101, 105, 108, 111, 114 123, 125 126, 128 130, 132, 137, 144 145, 155, 194, 204 205, 207 211, 213, 216 217, 220 222, 225, 227 228, 231 251, 253 257, 302, 339 340 Competent, 120 122 Interviews, 9, 11, 31, 69, 82, 89, 92, 94, 96, 101, 103, 105, 107 119, 121 123, 125 134, 136 137, 139 144, 156, 160 161, 164, 170, 184, 187, 193, 197, 203 204, 207, 209 212, 215, 223 229, 232 234, 236, 239 240, 244 245, 247, 250, 255 256, 311, 327, 349, 365 367 Behavioural, 113, 129, 223, 224 Power, 233 Preparation, 114, 164, 203 228 Questions, 212 222, 226 227 Rapport, 223, 226, 248, 348, 366 Recruitment, 210 211 Selection Interviews, 211, 228, 239 Training Interviews, 122 123 Trust, 239 243 80/20 rule, 247 248 Investment in People, 372

433

Job Analysis, 65 66, 69 70, 73, 98, 100, 109, 142 144, 147, 158, 164, 191, 225, 311, 329 Job Description, 9, 47, 57, 66 69, 92, 98, 100, 120, 144 Job Enlargement, 8, 20, 71, 98, 158, 311 Job Enrichment, 8, 72, 98, 158, 311, 342 Job Re-design, 70 73, 98 Job Rotation, 8, 71, 98 Job Sharing, 27, 44 Job Simplification, 70, 98 Kaizen, 26, 32, 323 325, 327, 329, 331, 333, 335, 337, 339 349, 351, 369 370, 372 Characteristics, 340 342 Methodology, 347 349 Types, 342 346 Knowledge, 3 6, 8 11, 20, 26, 28, 31 32, 35 36, 38 41, 44, 47 48, 56 58, 60 63, 65 67, 71, 74 76, 78, 80, 91, 98, 106, 109 111, 119 120, 127 128, 133 136, 144 146, 150, 157, 169 170, 173 174, 176 177, 179, 181, 184 186, 189, 193, 195, 210 211, 214, 216, 218, 221 222, 225, 246, 248, 252, 263 264, 267 270, 272, 274, 276, 281, 286, 289, 295, 300 302, 305 306, 310, 312, 314 316, 318 319, 324, 326 328, 334, 337 338, 346, 350, 372 KSAOs, 9, 110 Law, 9, 48, 52, 126 127, 129 130, 161, 164, 211 Learning, 3 5, 19, 25, 27, 34 35, 39, 57 58, 60 61, 64 65, 101, 105, 131, 148, 150, 157, 166, 169, 173 174, 176, 179, 182, 184 185, 187, 189, 199 201, 203, 205, 209, 217, 220, 223, 229, 231, 253, 257, 261 263, 267,

434

Index

269 271, 282 288, 290 291, 293, 302 303, 305 307, 311 312, 315, 318 323, 325 327, 335 336, 339, 341 346, 351, 353, 364, 368, 370, 377 Leasing, 27, 77 Life experiences, 135, 169, 172, 181, 199, 218 Management Philosophy, 4, 11 12, 16, 22, 34 35, 45, 333, 348, 350, 363, 373, 376 Mentors, 61, 267 269, 284, 286 287, 289 290, 329 330, 343, 348, 364 Offers, 106, 122, 153, 155, 166, 175, 252, 256, 278 279 Organisational Change and Growth, 98 Organisational Diagnostics, 7, 30, 34, 47, 59, 88, 156, 158, 244, 318, 333 334, 363, 369, 373, 376 Organisational Growth, 6 Organisational Image and Reputation, 51 52 Outsourcing, 28, 42, 44, 153, 368 Personnel Management, 13 14 PESTEL, 41 Porter’s Generic Strategies, 41 Preferred Employers, 53, 63, 194, 203, 232, 356 Probationary Periods, 161 Psychological Contracts, 155 156, 280 Question Techniques, 101, 311 Question Types, 141, 164, 223, 366 Recruitment, 3 12, 14 15, 17 20, 22, 26 27, 29 36, 38 40, 42 47, 50, 52, 57, 59, 61 69, 71, 73, 75 87, 89, 91 93, 95 101, 106, 112, 114, 122 124, 126, 128 129, 131 133, 135 145, 147, 149 153, 155, 157 166,

169, 176 177, 179, 182, 195, 203, 209 211, 221 222, 224, 226, 228, 231, 243, 247, 252, 261, 277, 282, 293, 295 297, 299, 301 303, 305, 307, 309, 311, 313, 315, 317, 319, 321, 323 324, 328, 330 331, 335 336, 338, 341 342, 345 346, 349, 351, 353, 362 364, 370, 372 374, 376 Aids, 131 165 Resource Maximisation, 16, 18 19, 33, 41, 43, 59, 154, 232, 373 Reference Checks, 30, 131, 134, 136 137, 142, 160 161, 166, 204, 210, 335, 341, 349, 366, 374 Referrals, 78 79, 84, 99, 112, 151 152, 216, 328, 365, 368 Reliability, 108 109, 111, 119 120, 123, 129, 131, 139, 141 145, 147, 165, 186, 242, 334, 349, 366, 375 Inter-Rater Reliability, 120 Internal Consistency, 143 Parallel-Test Reliability, 143 Test-Retest Reliability, 142 Re´sume´s Hooks, 193 194 Hybrid, 181, 188 189, 200 Targeted, 184 188 Traditional, 181 184 Return on Investment, 18, 295, 298, 301, 322, 356, 365, 371, 375 Selection, 3 12, 14 15, 17 20, 22, 26 27, 29 36, 38 40, 42 47, 50, 52, 57, 59, 61 69, 71, 73 75, 77 79, 81, 83, 85 87, 89, 91 95, 97 101, 106 109, 112 114, 116, 121 124, 126, 128 133, 135 145, 147, 149 153, 155, 157 166, 169, 176 182, 185 186, 191 192, 195, 200 201, 203 206,

Index 208 211, 221, 225, 228, 231 233, 235, 239, 243, 247 248, 250 252, 254 256, 261, 263, 273 274, 277, 282, 286, 290, 293, 295, 297, 299, 301 303, 305 307, 309, 311 313, 315, 317, 319, 321, 323 326, 328 351, 353, 360, 362 367, 370 374, 376 Selection Criteria, 8 9, 65, 109, 122, 136, 164, 176, 178, 180 181, 185 186, 191, 200, 205 206, 225, 232 233, 235, 248, 255, 263, 311, 324 326, 329 330 Senior Executive Selection, 123 Signalling Theory, 42, 90, 150 Skype, 108, 125 126, 129 Social Media, 10, 85, 135, 137, 151 152, 156, 166, 169, 171, 180, 182, 191, 195 196, 215, 229, 232, 269, 290, 300, 329 330 Social Networking, 151 152, 156, 165 166, 179, 269, 290, 365 Social Responsibility, 30, 37, 52 54, 172, 242, 251, 317, 332 Space, 43, 103, 286 Strategic Human Resource Management, 16 Strategic Staffing, 31 Strategy, 3 5, 7, 9, 11, 13, 15 19, 21 23, 25 27, 29 31, 33, 39 45, 47 49, 52, 57 58, 62, 64, 68, 75, 78, 82, 87 88, 107, 124, 128, 135, 139, 154, 164 165, 217, 225, 233, 243, 254, 262, 267, 294, 297, 306 307, 309, 314, 321 322, 324, 327, 337, 343 344, 346, 369, 371 373 Cost Leadership, 41 42, 44 Cost minimisation, 41 44 Differentiation, 43 45, 124 Focus Strategies, 29, 41 42 Retention, 39, 58, 86 89

435

Structure, 16 17, 23, 35 37, 39, 48, 57, 63 64, 66, 76, 86, 107, 109, 135 136, 147, 158, 206, 261 262, 264, 273 274, 283, 290, 321, 324, 327, 350 Succession, 8, 35, 60 62, 64, 75, 135, 157, 180, 282, 284 285, 290 291, 318, 339, 367 Sustainable Staffing, 30 SWOT, 40 41, 61 Systems, 3 5, 7, 9, 11, 13, 15, 17 19, 21, 23 27, 29, 31 34, 37, 46 47, 49 51, 54, 59, 61, 63, 66, 85, 87, 125, 132, 136, 146, 150, 169, 172 173, 175, 205, 209, 216, 232, 238, 242 243, 254, 261, 272, 277, 282 283, 289 290, 295, 311, 318 319, 323 324, 326 328, 332 334, 336, 338 339, 341 342, 348, 350, 358, 362 364, 373, 377 Talent Acquisition, 62, 133, 190, 194 195, 242 243, 278, 282 283, 293 301, 303 305, 307 309, 312 324, 327, 334, 338 339, 341 342, 345 346, 349, 351, 359, 362 363, 365, 367 368, 370 373, 376 377 Talent Development, 205, 262, 269, 282, 285, 314, 322, 367 Talent Management, 132 133, 177, 282 284, 286 287, 290 291, 295, 313, 338 339, 362, 371 372 Testing, 9, 11, 115, 131 134, 136 137, 139, 141 142, 144, 147, 161, 164, 166, 170, 173, 184, 187, 192, 204 205, 207, 302, 311, 320, 329, 335, 342, 345, 349, 366 Cognitive Ability, 133, 138, 141, 144, 173 Graphology, 139 140 Personality and traits, 136 Psychometric, 9, 11, 133, 135, 164, 166

436

Index

Situational Judgment Testing, 140 Time, 7, 10, 13, 18, 20 22, 27, 29, 37 40, 43 45, 47 48, 52, 56, 58, 60, 62 63, 67 70, 73, 76 77, 79 81, 84, 87 88, 91 93, 97 98, 103 104, 109, 112 117, 123, 125, 128 129, 142 145, 148, 151 154, 156 157, 159, 161 162, 165, 171, 174 175, 177 179, 182, 185, 189, 191, 194, 198 200, 204 205, 207 209, 211 214, 218, 220 221, 223 225, 228, 231 232, 234, 238 240, 243 244, 247 252, 254 257, 261 262, 264, 267 268, 273 275, 279 282, 284, 286, 289, 291, 298 299, 301 307, 309 312, 315 316, 318, 320, 323, 325 326, 328, 331, 333, 335, 339 341, 343 345, 348 351, 355, 359, 362, 365 372, 376 377

Training and Development, 15, 66, 88, 91, 106, 149, 269, 285 Turnover, 20 21, 24, 31, 42, 45, 56, 59, 62, 64, 67, 70 72, 76, 78, 83 84, 86, 88 89, 98 99, 122, 157, 160, 244, 281, 287 288, 291, 294, 298, 300 301, 309, 312, 318, 322, 346, 351, 356, 359, 364, 368 Validity, 46, 95, 108 110, 113, 119 120, 122, 126, 128 131, 138, 141, 143 147, 165, 186, 192, 223, 229, 349, 354, 366 Concurrent Validity, 144 145 Criterion-Related Validity, 144 Other forms of, 145 147 Predictive Validity, 145, 223 Video Re´sume´s, 124 125 Volunteering, 175, 200 VRIO, 56 58, 60 62, 64, 221, 232, 248, 282, 318 319, 354, 363 364, 374, 376