Chapter 06 - Selection and Placement Please click here to access the new HRM Failures case associated with this chapter. HRM Failures features real-life situations in which an HR conflict ended up in court. Each case includes a discussion questions and possible answers for easy use in the classroom. HRM Failures are not included in the text so that you can provide your students with additional real-life content that helps engrain chapter concepts. Chapter Summary The following requirements to use a personnel selection device are discussed: reliability, validity, generalizability, utility, and legality. The following methods of selection are discussed, in terms of the above factors, how the methods work in practice, and how they can be improved for use: interviews, reference checks, biographical information, physical ability tests, cognitive ability tests, personality inventories, work sample tests, honesty tests, and drug tests. The importance of the use of multiple measures and multiple judges in selection is emphasized. Learning Objectives After studying this chapter the student should be able to: 1. Establish the basic scientific properties of selection methods, including reliability, validity, and generalizability. 2. Discuss how the particular characteristics of a job, organization, or applicant affect the utility of any test. 3. Describe the government's role in personnel selection decisions, particularly in the areas of constitutional law, federal laws, executive orders, and judicial precedent. 4. List the common methods used in selecting human resources. 5. Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility, and legality. Extended Chapter Outline Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section. Opening Vignette: The Minority Majority For the first time in US history, in 2012 the first ever “natural decrease” in population occurred among whites of European ancestry. Simply put, the demographics of the American population and subsequently the labor force is changing rapidly. Despite advances in racial relations (for example, the election on an African American President in the US in 2008 and 2012), stereotypes and the issues associated with them still appear to abound. Discussion Question With all of the assumed advances made in race relations, coupled with the changing demographic profile of the American population and labor force, what impacts do you see these conditions having on employee selection? On employee relations? Answer: The answers to this question will almost certainly be varied. It appears that employers today must be certain to emphasize the importance of fairness and equality in hiring and promotion practices. By the same token, it is important for the organization to hire the best qualified individual for the job regardless of ancestry. In today’s society, one slip up – either way – can spell disaster for a company’s reputation. Advances in race relations and changing demographics impact employee selection and relations in several ways: 1. Employee Selection: Diverse applicant pools require more inclusive selection practices. Organizations must ensure their hiring processes are free from biases, using structured interviews and objective criteria to fairly assess candidates from different racial and demographic backgrounds. 2. Employee Relations: A diverse workforce necessitates robust policies to foster inclusion and prevent discrimination. Companies must invest in diversity training and create supportive environments to address and resolve conflicts, ensuring all employees feel valued and respected. 3. Organizational Culture: Embracing diversity can lead to a richer, more innovative work environment, but it also requires ongoing efforts to maintain equitable treatment and address systemic inequalities to sustain positive employee relations and engagement. I. Introduction The chapter will familiarize students with ways to mini¬mize errors in employee selection and placement, and doing so improve the organization's competitive position. Five selection method standards will be discussed: reliability, validity, generalizability, utility and legality. II. Selection Method Standards A. Reliability is the degree to which a measure of physical or cognitive abilities, or traits, is free from random error. If a measure of a stable characteristic is reliable, the score a person receives will be consistent over time and over different contexts. Reliability is a necessary but insufficient characteristic of a good measuring device (See Figure 6.1 a & b). 1. Estimating the Reliability of Measurement—The concept of reliability is demonstrated by measuring height at different times. Even though height is supposedly a stable characteristic, slightly different results are generated every time height is measured. Each measurement is then composed of "true height" and "error of measurement." The average of all the errors (ignoring the positive or negative value) is referred to as the reliability of measurement. Reliability in this example refers to the measuring instrument (a ruler versus a visual guess) rather than to the characteristic itself. The correlation coefficient is a measure of the degree to which two sets of numbers are related. The correlation coefficient expresses the strength of the relationship in numerical form. A perfect positive relationship equals +1.0; a perfect negative relationship equals –1.0. When assessing the reliability of a measure, we might be interested in knowing how scores on the measure at one time relate to scores on the same measure at another time. This is what is called assessing test-retest reliability. 2. Standards for Reliability—Clearly, the more reliable the measure, the more likely decisions can be made on score differ¬ences. There are many ways to increase the reliability of a test, including writing clear and unambiguous items and increasing the length of a test. B. Validity is the extent to which a performance measure assesses all the relevant –and only the relevant- aspects of job performance. Criterion related validation 1. Criterion related validation is a method of establishing the validity of a personal selection method by showing a substantial correlation between test scores and job-performance scores. There are two types of criterion related validity: a. Predictive vali¬dation is a criterion-related validity study that seeks to establish an empirical relationship between applicants’ test scores and their eventual performance on the job. b. Concurrent validation is a criterion-related validity study in which a test is administered to all the people currently in a job and then incumbents’ scores are correlated with existing measures of their performance on the job (processes are compared in Figure 6.3). c. Predictive validation is superior to concurrent validation for three reasons a) job applicants are typically motivated to perform well on the tests than are current employees, b) current employees have learned many things on the job that applicants have not yet learned, c) current employees tend to be homogeneous. 2. Satisfactory levels of validity are typically defined by statistical significance (text Table 6.1). 3. Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that may occur on the job. There are two limitations to content validation a) the person who is hired must have the knowledge, skills, or abilities at the time he or she is hired and b) subjective judgment plays such a large role in content validation. Competing Through Technology: Our Hiring Manager is an Algorithm Many organizations are attempting to capitalize advances in data analysis technology by replacing the decision to hire based on traditional face-to-face interview assessments (which may be subject to personal biases) to computer programs that use algorithms based on “big data” (long term data concerning success of new hires correlated with personality measures for example) to find the “ideal employee”. The industry experienced 15% growth in one year to $3.8 billion in 2011. There are issues related to adverse impacts by age, race and gender when the algorithm retains items based only criterion-related validity that discriminate applicants in terms of future outcomes. Discussion Question What types of jobs are best suited to “big data” hiring solutions like those discussed here? Answer: Students may reply in terms of their own interests to this question. It is important for them to realize that an algorithm may be able to discriminate applicants for jobs that have readily measurable outcomes, but may have difficulty on jobs that rely heavily on inter-personal interaction and relationship building skills. Big data hiring solutions would therefore likely be useful for customer service type jobs that require immediate interaction, but not a long-term relationship. Best Suited Jobs: Jobs involving repetitive tasks or data analysis, such as data entry, customer service, or financial analysis, benefit from "big data" hiring solutions due to their reliance on quantifiable skills and patterns. What types of job categories are likely to always involve some degree of human judgment? Answer: As mentioned above, jobs that are reliant on building long-term relationships with clients or are reliant on fluid conditions would still require some human judgment in order to make a good choice. Human Judgment Required: Roles requiring nuanced decision-making, creativity, or interpersonal skills, such as leadership positions, counseling, or artistic jobs, are likely to always need some degree of human judgment. C. Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts. 1. It was once believed that validity coefficients were situationally specific—that is, the level of correlation between test and perfor¬mance would vary as one went from one organization to another, even though the jobs still seemed to be identical. 2. It was also believed that tests showed differential subgroup validity, which meant that the validity coefficients for any test-job performance pair was different for people of different races or genders. 3. Validity generalization stands as an alternative for validating selection methods for companies that cannot employ criterion-related or content validation. D. Utility is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in real orga¬nizations. Utility is impacted by reliability, validity, and generaliz-ability. Other factors will influence utility even when the latter is constant. For example, the selection ratio, which is the percentage of people tested versus the total number of applicants, will impact utility as well as the number of people selected (more people increase utility), race of employee turnover, and level of perfor¬mance among chose who leave (to increase utility, turnover should be low with those leaving in low performance categories). (See Figure 6.4 a & b). Evidence Based HR Recent research evidence indicates that previous assumptions concerning the nature of the statistical distribution of worker performance appear to be wrong. Previous analyses were based on an assumption that performance takes the form of a normal distribution, whereas data collected from over 600,000 employees take the form of a power law distribution. One example of problems associated with that assumption is in the analysis of the difference in dollar value between a “highly productive” worker and an “average worker” using the normal distribution is $11,327 whereas that difference based on a power law distribution is $39,645 – and this is per employee… Exercise Have the class break into small groups, perhaps of three to four students each. Ask them to research the number of employees in larger corporations. Using the differences in dollar values provided in the scenario, have them determine the potential loss in value to a company if various percentages (e.g. 5%, 10%, 20% and 25%) of their employees were hired under erroneous assumptions (i.e. hired under the assumption of a normal verses a power law distribution). E. Legality—All selection methods must conform to existing laws and legal precedents (Chapter 4 discusses these issues). 1. Federal Legislation—The Civil Rights Act of 1991 (an exten¬sion of the Civil Rights Act of 1964) protects individuals from discrimination based on race, color, sex, religion, and national origin with respect to hiring as well as compensation and working conditions. The 1991 act differs from the 1964 act in three different areas: a. It defines employers' explicit obligation to establish the business necessity of any neutral appearing selection method that has an adverse impact on protected groups. b. It allows the individual filing the complaint to have a jury decide whether he or she may recover punitive damages (in addition to lost wages and benefits) for emotional injuries caused by the discrimination. c. It explicitly prohibits the granting of preferential treatment to minority groups. Competing Through Globalization: “Pink Quotas” in Europe Many European countries have instituted laws requiring listed and state-owned companies to ensure a certain percentage of their board seats are held by women. For a variety of reasons, some of these countries do not have enough qualified women to fill these seats and the companies end up recruiting American women to fill them, which sometimes proves difficult to do. Discussion Question How does greater representation of women on corporate boards promote both societal goals and competiveness goals at the same time? Answer: Any time students answer questions that are based on gender or race, their responses will vary. In this case, students should identify the issues revolving around equality in terms of opportunity and in terms of potential for success. Additionally, in terms of competitiveness, many people now consider the ethical decisions and behaviors of a company to be a part of their assessment of the quality and success of the firm. Providing for an equitable number of seats on the board of directors for women may be a deciding factor for some people – not to mention that the added diversity in views and decision input will aid in improving the quality of decision making of the board. Greater representation of women on corporate boards promotes societal goals by advancing gender equality and ensuring diverse perspectives in decision-making. It also enhances competitiveness by fostering more innovative solutions and improving organizational performance through diverse viewpoints and improved corporate governance. What long-term steps can be taken by countries and companies to eliminate the need for quotas over time? Answer: In the longer-term, countries should invest in training programs for women – not only in terms of education and skills training, but in terms of career management. That combined with these laws providing for the opportunity to “break through” traditional gender barriers may provide for long-term improvement in these conditions. 2. The Americans with Disabilities Act of 1991 protects individ¬uals with physical or mental disabilities (or with a history of the same): a. "Reasonable accommodations" are required by the organi¬zation to allow the disabled to perform essential functions of the job. Examples of accommodations include restruc¬turing jobs, modifying work schedules, making facilities accessible, providing readers, or modifying equipment. An employer need not make accommodations that cause undue hardship such as undue cost or danger to the safety of other employees. 3. The executive branch of the government also regulate hiring decisions through the use of executive orders. Executive Order 11246 parallels the Civil Rights Act of 1964 but goes beyond it by (a) requiring affirmative action to hire qualified protected group applicants and (b) allowing the government to suspend all busi¬ness with a contractor while an investigation is going on. The Office of Federal Contract Compliance and Procedures (OFCCP) issues guide¬lines and help companies comply. III. Types of Selection Methods A. Selection interviews are defined as a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment. It is the most widely used selection method, although research suggests it can unreliable, low in validity, and biased against a number of groups. 1. The utility of an interview can be increased by the following sugges¬tions: a. Interviews should be structured, standardized, and focused on accomplishing a small number of goals oriented to skills and behaviors that are observable. b. Interviewers should plan to come out of each interview with a quantitative rating. c. Interviewers should also have a structured note-taking system that will aid recall when it comes to satisfying the ratings. 2. A situational interview is an interview procedure where applicants are confronted with specific issues, questions, or problems that are likely to arise on the job. They consist of: a. Experience-based questions b. Future-oriented questions. B. References, biographical data, and applications blanks gather background information on applicants before an interview. These techniques are, at best, weak predictors of future job success. Typically, references are very positive since only those who the applicants know will give a good reference are asked to do so. Many suites have been filed against past employers’ revealing too much information beyond job title and years of service. The biggest concern with the use of biographical data is that applicants who supply the information may be motivated to misrepresent themselves. C. Physical ability tests may be relevant for predicting not only job performance but to predict occupational injuries and disabilities as well. Criterion related validities tend to be quite strong, although adverse impact on the disabled and women is highly possible. These tests measure: 1. muscular tension 2. muscular power 3. muscular endurance 4. cardiovascular endurance 5. flexibility 6. balance 7. coordination D. Cognitive ability tests differentiate individuals based on their mental rather than physical capacities. One of the major drawbacks to these tests is that they typically have adverse impacts on some minority groups. Indeed, the size of the differences is so large that some have advocated abandoning these types of tests for making decisions regarding who will be accepted for certain schools or jobs. 1. Verbal comprehension refers to a person’s capacity to understand and use written and spoken language. 2. Quantitative ability concerns the speed and accuracy at which one can solve arithmetic problems. 3. Reasoning ability refers to a person’s capacity to invent solutions to many diverse problems. E. Personality inventories categorize individuals relative to what they can do, personality measures tend to categorize individuals by what they are like. Common dimensions assessed are extroversion, adjustment, agreeableness, conscientiousness, and inquisitiveness (text Table 6.3 lists corresponding adjectives for these dimensions). Competing Through Sustainability: When Do the Unemployed Become Unemployable? Unemployment can be both an immediate and a long-term problem for many workers. It appears that many US workers have been unemployed “long-term” – that is over 5.5 million workers for over six months, and 4 million for over 12 months. That is a problem in the immediate term for obvious reasons. However, perhaps the bigger problem is that some workers may no longer have the up-to-date skills necessary to re-enter the workforce. This is compounded by the fact that many employers assume the workers lack skill without properly investigating their skill-set and other perceive that these long-term unemployed workers are unemployed simply because they are either lazy, unmotivated to find work, or prefer not to work and collect unemployment if they can. Discussion Question How might a systematic and comprehensive system of testing and reference checking help eliminate some sources of long-term unemployment? Answer: The answer here seems to be somewhat obvious – such a system would remove assumptions that workers do not have current skills if in fact they do have them. Reference checking might remain problematic. A systematic and comprehensive system of testing and reference checking can help eliminate long-term unemployment by ensuring that candidates are accurately assessed for their skills and fit for the job, leading to better job matches. This reduces the likelihood of prolonged job searches and frequent job mismatches, which can contribute to long-term unemployment. On the other hand, in what sense does the solution to this problem go beyond hiring practices of employers? Answer: On the other hand, there is something to be said for personal responsibility. One could argue that it is up to the employee to ensure that even if they are unemployed, they should work towards and strive to keep their skills and knowledge current on their own. Workers should also find creative ways to demonstrate the currency of their skill-set and their ambition to find meaningful employment. F. Work-sample tests attempt to simulate the job in a prehiring context to observe how the applicant performs in the simulated job. Work samples are job specific and tend to be high in criterion related and content validity and low in adverse impact. The disadvantages are that generalizability tends to be low, and they are relatively expensive to develop. The technique used in managerial selection is the assess¬ment center, which is a process in which multiple raters evaluate employees’ performance on a number of exercises. H. Honesty tests and drug tests—The Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharma¬ceutical and security guard suppliers. Paper and pencil honesty testing attempts to assess the likelihood that employees will steal. Since these tests are new, there is little evidence on their effective¬ness. Integrity in Action: Local Politics and Hiring Collide for Contractors Some US municipalities, in an effort to protect their local economy and citizenship, have passed laws requiring contractors doing work for the municipality to hire local residents for those projects. There are a multitude of issues with this – none the least is the fact that this restricts the contractor for potentially hiring the best qualified people to do these jobs. One side of the argument is that these jobs are not “important enough” to be a concern, whereas the other side of the argument is that the integrity in structure when building a building is important. Discussion Question As this box shows, employers are often caught in a bind where government officials place restrictions on whom they can hire, but at the same time, hold employers liable for any hiring mistakes they make. How can employers meet both of these challenges when it comes to making successful hiring decisions? Answer: This is a true dilemma. Employers have to work to ensure they have hired the best people to do the job, but also must adhere to legal requirements. Even though these laws appear to violate federal law, in the short-term, the employer must attempt to comply if they wish to do business with the municipality. A Look Back In the vignette that opened this chapter we saw how the demographic composition of the U.S. is changing, and some of the implications this has for personnel selection in the future. The decisions that organizations make regarding who is going to be part of the team and who is going to be turned away, are some of the most important decisions that the firm will make in terms of gaining a competitive advantage. These decisions have to be based upon procedures that have been empirically validated and not left to idiosyncratic judgments of untrained individuals who may be subject to stereotyped biases. Firms that routinely recruit and select the “best of the best,” regardless of the occupation leave their competitors with labor pool leftovers that will constantly limit their ability to compete. This chapter has summarized hundreds of years of research and demonstrated a large and varied set of tactics that firms can use to make the right hiring decisions when it comes to the selection process. Questions 1. Based on this chapter, what are the best methods of obtaining information about job applicants? Answer: Students answers may vary, but could include the following: interviews, references and biological data, cognitive ability tests, and personality inventories are the best methods of obtaining information about job applicants. Based on the chapter, the best methods for obtaining information about job applicants include: 1. Structured Interviews: These use standardized questions and evaluation criteria to ensure consistency and fairness. 2. Skills Assessments and Tests: These measure specific competencies and abilities relevant to the job. 3. Reference Checks: These provide insights into the applicant's previous performance and reliability. 4. Background Checks: These verify the accuracy of the applicant's resume and uncover any potential issues. 5. Work Samples and Simulations: These assess the applicant’s ability to perform job-specific tasks in a controlled environment. 2. What are the best characteristics to look for in applicants, and how does this depend on the nature of the job? Answer: Students could include personality, interpersonal style, job knowledge and skill, and verbal, quantitative, and reasoning abilities as being the best characteristics to look for in an applicant. Characteristics will differ from job to job because each job requires different situations and abilities (e.g. assembly line workers would not need the same degree of interpersonal skills as a salesperson). 3. If you could use only two of the methods described in this chapter and could assess only two of the characteristics discussed, which would you choose, and why? Answer: Interviews and references could be the two methods and interpersonal styles and job knowledge and skill could be the two characteristics students might include in their answers. Interpersonal styles, that could be observed in an interview, and job knowledge and skill, which an employer could be informed of from a previous employer/reference, would be needed for any job and should be known before the applicant is hired. Chapter Vocabulary These terms are defined in the "Extended Chapter Outline" section. Reliability Validity Criterion related validity Predictive validation Concurrent validation Content validation Generalizability Utility Situational interview Cognitive ability tests Verbal comprehension Quantitative ability Reasoning ability Assessment center Self-Assessment Exercise Refer to the text for the self-assessment exercise. Discussion Questions 1. We examined nine different types of selection methods in this chapter. Assume that you were just rejected for a job based on one of these nine methods. Obviously, you might be disappointed and angry regardless of what method was used to make this decision, but can you think of two or three methods that might leave you most distressed? In general, why might the acceptability of the test to applicants be an important standard to add to the five we discussed in this chapter? Answer: Students would likely find tests with lowest reliability and validity levels to be most unsatisfactory, such as personality tests and honesty tests. Most students would probably be disturbed by drug tests because of the perceived invasion of privacy. Face validity is indeed a critical issue and applicants should be asked about their perception of various tests that they take. If rejected based on selection methods, you might be most distressed by: 1. Personality Tests: These can be subjective and might feel like they don’t accurately reflect your skills or character, leading to frustration over perceived misinterpretation of your true self. 2. Assessment Centers: These involve extensive simulations and multiple evaluators, which can make the process feel impersonal and daunting, especially if feedback is unclear or contradictory. 3. Background Checks: If inaccuracies or outdated information lead to rejection, it can be distressing, particularly if you feel the results don’t reflect your current qualifications or character. Acceptability of the test to applicants is important because: • Fairness Perception: If applicants view the method as fair and relevant, they’re more likely to accept the outcome, even if it’s unfavorable. • Reduced Bias: Acceptable methods are less likely to lead to perceptions of bias or discrimination, fostering trust in the process. • Increased Validity: Tests that applicants perceive as relevant and fair tend to be more effective in evaluating job fit and performance. 2. Videotaping applicants in interviews is becoming an increasingly popular means of getting multiple assessments of individuals from different perspectives. Can you think of some reasons why videotaping interviews might also be useful in evaluating the interviewer? What would you look for in an interviewer if you were evaluating one on videotape? Answer: The videotape, of course, can be reviewed to examine the candidate and the capabilities of the interviewer. Factors to observe in interviewer behavior include being prepared to start on time, putting the candidate at ease, asking questions that are clear (questions that do not have multiple questions within each) and that require more than a yes or no answer, not asking illegal questions, asking questions that are job related and demonstrate knowledge of the job, and closing the interview appropriately by informing the candidate about what happens next and when he or she will be contacted. If this is a recruitment interview, there should also be a strong description of the organization, pay and benefits, the job and working conditions, and so on. 3. Distinguish between concurrent and predictive validation designs, discussing why the latter is to be preferred over the former. Examine each of the nine selection methods discussed in this chapter, and determine which of these would have validity most and least affected by the type of validation design employed. Answer: The process of predictive validation means that a test is given and the score is not used for selection (the existing techniques are used to decide on hiring). Then, after six to nine months, performance information is gathered and the test score and performance scores are correlated. Concurrent validation is a process in which current employees are given tests, performance information is gathered at the same time, and the test and performance scores are correlated. Predictive validation is preferred, since applicants tend to be more motivated to take the test than current employees (current employees may be threatened by the test). In concurrent validation, one has no way of knowing what was learned on the job and what employees knew or could do before they were hired. Concurrent validation frequently results in restriction of range, since poor performers have probably left and therefore the correlation coefficient is lower. Predictive validation is also preferred by the EEOC. Students can speculate on how validity may be different for each selection technique, depending on whether predictive or concurrent validation techniques are used. 4. Some have speculated that in addition to increasing the validity of decisions, employing rigorous selection methods has symbolic value for organizations. What message is sent to applicants about the organization through hiring practices, and how might this message be reinforced by recruitment programs that occur before selection and training programs that occur after selection? Answer: Message to the applicants is clear that the organization wants the individuals best suited for the job and organization with the appropriate qualifications. This message can be reinforced through rigorous recruitment methods as well as offering training programs that fit the job requirements and the needs of the individuals. Exercising Strategy: Who is Screening the Screeners? Because employers today can be held legally responsible for the illegal acts of the people they hire, and because there is no limit to the liability that employers may face if found guilty of negligent hiring, the number of employers who conduct routine background checks has gone from 51% to 96%. For this reason, there is unprecedented growth in the background checking industry. However, there are problems with this industry. One of them is that firms have begun to assemble “digital dossiers” based upon telephone interviews with friends, co-workers, and former bosses. Untrained call center employees inquire about work habits, personal character, drug and alcohol consumption practices, and just about anything else the source wants to talk about. Questions What alternative selection procedures discussed in this chapter could an employer use to screen potential “bad actors” that would not involve outsourced background checks? Answer: Student responses can vary but some suggestions include the use of tests, such as integrity tests, to assess the extent to which an employment prospect is likely to be a good, trustworthy, ethical employee. Also, the interview process could include behavioral interview questions that seek to obtain information about how an employee has acted in situations that involve judgment, honesty and integrity. Rather than outsourcing to a background checking company, an employer would request that a prospect provide references, and the employer could contact and interview the references in order to obtain information about the prospect. To screen potential "bad actors" without relying on outsourced background checks, employers could use the following alternative selection procedures: 1. Structured Interviews: Conduct in-depth, structured interviews with standardized questions to evaluate candidates' qualifications, work habits, and fit for the role. This approach helps ensure consistency and fairness in assessing candidates. 2. Work Samples and Simulations: Use work samples or job simulations to assess candidates' skills and behavior in realistic job scenarios. This method provides a direct evaluation of how candidates perform tasks relevant to the job. 3. Reference Checks from Direct Supervisors: Obtain references from direct supervisors or colleagues who can provide insights into the candidate's work performance, behavior, and reliability, offering a more accurate picture of their potential as an employee. 4. Behavioral Assessments: Implement behavioral assessments or personality tests designed to predict future behavior based on past actions, ensuring that assessments are valid and reliable for the job role. These methods focus on evaluating candidates’ abilities and suitability for the job while minimizing reliance on potentially unreliable or invasive digital dossiers. If one is committed to obtaining outsourced background checks, what evidence might one want to collect that would allow an assessment of the value of the information in terms of the criteria (reliability, validity, and so on) covered in this chapter? Answer: Student responses can vary but could include the dates of the information, and also, a review of the way that the information was obtained. In other words, it would be helpful and insightful for the employer to screen the outsourced background checking company to learn about how the company gathers data. The means of data gathering could be suspect, as evidenced by the description in this vignette that untrained call center reps sometimes are the data gatherers. Thus, it would be helpful to know how the data is obtained, how subjective the data is, and what the quality of the sources are. That way, reliability and validity can be determined and acted upon appropriately. To assess the value of outsourced background checks in terms of reliability, validity, and other criteria, one should collect the following evidence: 1. Reliability Evidence: Obtain data on the consistency of the background check results. This can include comparing findings across different background check providers or evaluating the stability of results over time to ensure that the information is consistently accurate. 2. Validity Evidence: Evaluate the relevance of the background check information to the job performance. This involves assessing whether the background check data accurately predicts job-related outcomes such as performance, reliability, or misconduct. 3. Accuracy of Information: Collect evidence on the accuracy of the information provided by the background check vendor. This includes verifying the correctness of reported details and checking for any discrepancies or errors. 4. Compliance with Legal Standards: Ensure that the background check practices comply with relevant laws and regulations, such as the Fair Credit Reporting Act (FCRA). Collect documentation on the vendor’s adherence to these standards to avoid legal issues. 5. Transparency and Documentation: Review the vendor’s processes for gathering and reporting information. Ensure that they provide clear documentation of their methods and sources, which allows for better evaluation of the reliability and validity of the data. By collecting this evidence, organizations can better assess whether the outsourced background checks meet the necessary criteria for making informed and reliable hiring decisions. 3. In today’s digitally networked world, in what ways is it easier for HR managers or line managers to do their own homework on applicants that would obviate the need for outsourced background checks? Answer: There are a number of ways that employers can obtain information about applicants without having to use a background checking company. While it might make sense to use an outsourcing company to obtain criminal checks or credit checks on applicants, a company can obtain information about other important information such as employment history and educational history, as well as things like publications, through the use of social networking tools. Sites like LinkedIn and Facebook can provide insights about a potential hire as well. Managing People Secularism Is Considered Sacred in France France recently passed legislation preventing public displays of religion (such as wearing clothing that could be identified with a particular religion such as a Burquas), yet according to a recent study, job applicants in France who have secular sounding names (for example, individuals with Muslim sounding names) still may face discrimination. Questions To what extent is the belief that people are not biased by factors like religion, race, gender and ethnicity nothing more than “wishful thinking” and what are some of the methods investigators can use to establish the existence of bias? Answer: The proof provided in this case appears to dispute this belief. Espoused beliefs and enacted behaviors do not always coincide – and this is just one case of such a condition. The methods used in this case appear to be a good method to check the existence of these biases. 2. Rather than trying to blend in and integrate into the wider French community, many young Muslims in France, unlike their parents, are embracing names that clearly reflect their religion. What does this say about the magnitude of bias documented there and how young Muslims are reacting to it?? Answer: This situation does not necessarily speak to the magnitude of bias documented in this case, but does speak to the potential for future increases in problems associated with these biases. 3. How are the cultures of the U.S. and France different in a way that makes different kinds of bias more or less likely to be seen in employment decisions? Can you think of other countries where bias may take a different form?? Answer: The cultures of these two countries differ in that the US espouses freedom of speech and expression whereas the recent legislation enacted in France appears to support the opposite. At first glance, it appears that the French model would potentially aid in doing away with these biases (with the exception of identifying an individual’s religious affiliation by the sound of their name). However, it appears this is not the case. On the other hand, freedom of expression would appear to add to the bias problems. We do not have evidence here to support or refute that belief. Other countries, such as strict Muslim countries, may have biases present that discriminate against other religions. Communist countries may have biases towards individuals coming from a capitalist background present as well. Twitter Focus: Kinaxis is a global software company specializing in supply chain management that needed to hire a sales team to serve North American clients. After receiving more than 100 résumés for the openings, the sales director selected 20 candidates for first-round interviews. The interview process helped him cut the list to 10, but he needed another way to narrow the number of candidates. The company hired a firm to administer personality testing to the remaining candidates, which helped identify the four persons best suited for the sales positions. Question: What are the advantages of administering a personality test for these 10 candidates? What are the disadvantages? Answer: Advantages of Administering a Personality Test: 1. Improved Fit: Personality tests can help assess how well candidates’ traits align with the job’s requirements and the company’s culture, leading to better job fit and potentially higher job satisfaction and performance. 2. Predictive Validity: Certain personality traits (e.g., conscientiousness, emotional stability) have been shown to predict job performance and reliability, providing insights into candidates’ potential success in the role. 3. Objective Assessment: Personality tests offer a standardized, objective way to evaluate candidates, reducing biases that may arise in traditional interviews or other selection methods. 4. Enhanced Understanding: They can provide a deeper understanding of candidates’ work styles, preferences, and potential for teamwork, helping to make more informed hiring decisions. Disadvantages of Administering a Personality Test: 1. Potential for Misinterpretation: Results may be misinterpreted if the test is not validated for the specific job role, leading to incorrect conclusions about a candidate’s suitability. 2. Candidate Discomfort: Some candidates may find personality tests intrusive or stressful, which could affect their performance and perception of the company. 3. Limited Scope: Personality tests typically measure traits rather than skills or experience, so they might not provide a complete picture of a candidate’s qualifications or abilities relevant to the job. 4. Risk of Overemphasis: Relying too heavily on personality test results could overshadow other important factors like skills, experience, and cultural fit, potentially leading to suboptimal hiring decisions. Incorporating personality tests as part of a broader, multi-faceted selection process can help mitigate these disadvantages and provide a more comprehensive evaluation of candidates. Manager’s Hot Seat Exercise: Diversity in Hiring: Candidate Conundrum- Please refer to the Asset Gallery on the OLC for Hot Seat videos and notes. I. Introduction Interviewing and hiring qualified candidates is an important and prevalent management activity. This scenario depicts a debate between two managers regarding the hiring of two equally qualified individuals, one Caucasian and one African American. Instructors of Management or Human Resources will find this scenario to be a valuable platform to discuss legal issues and biases that can influence hiring decisions and the legal ramifications. II. Learning Objectives To assess students’ understanding of biases that may affect the hiring decision. To analyze and evaluate a novel interviewing and hiring process. To identify legal issues relevant to hiring. III. Scenario Description: Overview: Robert Gedaliah has interviewed fifteen candidates to fill the new Customer Outreach Representative position, and narrowed it down to two. He invited Paul Munez, the customer service team leader, for the second interview of these two candidates. The interviews proceed smoothly, with both candidates demonstrating appropriate levels of experience, skills and general intelligence. Paul and Robert will discuss the two candidates and reach a decision. Profile: Robert Gedaliah is the Founder and President of Beck ‘n Call, a delivery service with a staff of over 200 with many fleets of transportation, and warehousing an eclectic inventory of products. Robert oversees all of the departments, including human resources, operations, and accounting. Paul Munez is the Customer Service Director. He oversees the customer outreach representatives, and is involved in marketing to the expanding client base. References: The references included in the DVD are: Women-of-Color Managers Survey (PPT 14-7) Title VII Civil Rights Act of 1964 (PPT 14-9) Title VII Record of Charges 2002 (PPT 14-10) Title VII: Definitions (PPT 14-11) Back History: Beck ‘n Call is growing at a rapid rate – Robert knows its wise to take a precise and cautious approach towards growth, and scrutinizes all aspects. He has interviewed 15 people for the new Customer Outreach Rep. and has narrowed it down to two very qualified and intelligent young women. As is his policy, he has invited the team leader in for the follow-up interview. He also has a preference for group interviews because the dynamics are richer and therefore better reflect reality. Robert and Paul have a very good relationship – when they do have disagreements they are understanding and accepting of their differences and compromise when necessary. Robert doesn’t think too highly of the swinging bachelor persona, but it hasn’t affected job performance – anyway, it’s diversity that makes life interesting. Discrimination and diversity issues have become more complex now that the company is over the 50-employee mark. Robert does try very hard to have a diverse staff, although he hasn’t had nearly as many minority applicants for any position, to make his ratios balanced. This is further complicated by the fact that his customer base itself is increasingly diverse [studies overwhelmingly show that ethnic groups will choose or dismiss a company based on whether they feel their race/ethnicity is well represented and whether there’s a positive and successful diversity policy.] Scene Set-up: Robert and Paul have finished interviewing two candidates and are meeting to decide whom to hire. Scene Location: Robert’s office The Meeting - Summary: During the interviews, Paul’s body language is very engaged and positive toward Sonya, who is Caucasian. He smiles and nods at her and seems to enjoy their interaction. When Jacqueline, who is African American, is interviewed Paul’s body language is more closed, no smile. After the interviews Robert indicates that he likes both candidates but leans towards Jacqueline because she had sales experience. Paul likes Sonya more. Robert admits that it would be beneficial to hire an African American because there are presently very few minorities who work for Beck n’ Call and none in management. He reiterates, however, that his reasons are based on merit. He feels Sonya’s high level of enthusiasm may be a detriment to her work performance because customers may be turned off by it. He also suggests that Jacqueline would be better choice because she is married. Paul disagrees but, in the end, Robert states that they will go with Jacqueline and see how it works out. Afterthoughts – Summary: Robert says he bases hiring decisions on the person’s “total mix” including experience, education, fit with coworkers and supervisor, personality, etc. Based on that, he thinks Jacqueline is the best candidate. Dossier: The specific artifacts included in the DVD are: Jacqueline’s Resume Sonya’s Resume Beck n’ Call Job Posting IV. Discussion Questions: The References and related Discussion Questions may be found in PowerPoint slides 14-1 to 14-11 on the instructor’s side of the text’s Website. Learning Objective #1: To assess students’ understanding of biases that may affect the hiring decision. Errors in evaluation are often made because of common biases that influence one’s decision making (e.g., halo, horn, contrast, similar-to-me). What evaluation biases seemed to be taking place in this scenario? Answer: It’s possible that halo error may be affecting Paul’s judgment because he continually references her enthusiasm as her “selling point” but doesn’t offer any other substantive reasons for his preference. It was also clear from his body language that he liked Sonya which may have been because of a similar-to-me effect. Robert’s comment that a positive quality in Jacqueline is that she’s married may also be a similar-to-me effect. 1. Robert is suggesting Paul has [when he says he leans towards Sonya]: A bias Different taste Poor judgment Robert suggests that Paul prefers Sonya because he may be attracted to her. 2. Paul’s point is [when he says Sonya would be a better fit]: Skewed Valid Irrelevant Given what we saw in the interview and the fact that he doesn’t support his opinion with specific reasons, it is possible that his point is skewed. What advantages and disadvantages are there when using panel interviews? Answer: While disagreements may occur, this type of functional conflict can improve the decision making process. Two sets of ears listening to responses and providing interpretations typically leads to a more valid decision. However, when consensus cannot be reached through a rational discussion based on observed behaviors, someone has to make the final decision. This may cause hard feelings among panel members. 6. Robert’s decision: Disregards Paul Is premature Is wise Students’ answers will vary. Paul may very well feel disregarded, whether the decision is wise or not remains to be seen. The critical issue is whether Paul will embrace this decision and work hard to effectively interact with Jacqueline. Advantages of Using Panel Interviews: 1. Reduced Bias: Panel interviews involve multiple interviewers, which helps counteract individual biases and provides a more balanced and fair evaluation of the candidate. 2. Comprehensive Assessment: Different panel members can assess the candidate from various perspectives and expertise areas, providing a well-rounded view of the candidate's suitability for the role. 3. Consistent Evaluation: Panel interviews ensure that all candidates are evaluated using the same criteria and questions, promoting consistency in the selection process. 4. Team Dynamics: Panel interviews simulate team interactions, allowing interviewers to gauge how candidates might perform in a group setting and interact with potential colleagues. Disadvantages of Using Panel Interviews: 1. Intimidation Factor: Candidates may feel overwhelmed or intimidated by a panel, which could affect their performance and the authenticity of their responses. 2. Complex Coordination: Scheduling and coordinating panel interviews with multiple interviewers can be challenging and time-consuming, potentially delaying the hiring process. 3. Groupthink: Panel members might unconsciously influence each other’s opinions, leading to a lack of diverse perspectives and potentially skewing the evaluation. 4. Inconsistent Feedback: Different panel members may focus on different aspects of the candidate’s qualifications, leading to varied and sometimes conflicting feedback that can complicate decision-making. To maximize the benefits of panel interviews, it's important to ensure clear communication, structured evaluation criteria, and a well-defined process for collecting and integrating feedback. Learning Objective #2: To analyze and evaluate a novel interviewing and hiring process. What valid reasons did Robert provide to persuade Paul to choose Jacqueline? Answer: Students’ answers will vary – it will depend on what they consider “valid”. Discussing Jacqueline’s relevant experience and her job-related personality characteristics is relevant to the hiring decision. When he brought up the fact she was married, he lost credibility because this fact is not job-related and could be discriminatory to unmarried applicants. The debate among students will be whether the argument that there are very few African American employees and none in management is valid. 3. The key argument is about: Qualifications Ethnicity Personality The key argument should be about qualifications and job-related personality characteristics, first. Ethnicity may also factor into the decision. 5. Robert’s argument [that Sonya was too enthusiastic] is: Relevant Dodging issue Inaccurate This question should generate an interesting debate. Good interpersonal skills and propensity for working with people is in the job description. It is possible that over-exuberance may turn off customers. The scenario doesn’t provide enough information to know for sure. Robert lost credibility when he revealed a preference for married people so it is possible that Robert is using Sonya’s enthusiasm to dodge the real issue. Robert's Valid Reasons for Choosing Jacqueline: 1. Demonstrated Experience: Robert highlighted Jacqueline's extensive experience in the industry, showcasing her proven track record and relevant skills that align well with the company's needs. 2. Strong Performance in Interviews: Jacqueline's performance during the interviews was notably strong, reflecting her preparedness, confidence, and ability to effectively communicate her qualifications. 3. Cultural Fit: Robert emphasized Jacqueline’s alignment with the company's culture and values, suggesting that her personality and work style would integrate seamlessly with the existing team. 4. Potential for Growth: He may have pointed out Jacqueline's potential for future growth and development within the company, indicating that investing in her could lead to long-term benefits for the organization. 5. References and Recommendations: Robert likely cited positive feedback from Jacqueline’s references, reinforcing her credibility and suitability for the role based on external endorsements. What aspects of the Women-of-Color survey are relevant to this scenario (PPT 14-7)? How could Robert use this to support his position? Answer: The fact that there are African American employees at Beck ‘n Call but none in management positions is relevant to women of color feeling that they don’t have role models in the company. Thus, Robert’s argument that hiring Jacqueline in this management-training position is valid and may be important for the current employee’s career growth and satisfaction. Learning Objective #3: To identify legal issues relevant to hiring. If Robert made the decision to hire Jacqueline because she was married, would Sonya have a case against Beck ‘n Call under Title VII? (see PPT 14-9 to 14-11). Answer: No, Title VII does not protect an individual based on their marital status. However, being married or not is typically not job-related, and therefore would be difficult to defend in a court of law. Is Robert’s decision to hire Jacqueline legal? Why or why not? Answer: Yes, because Jacqueline and Sonya were at least equally qualified. The courts have ruled, however, that you cannot hire a less qualified candidate simply because they are a minority unless the organization is rectifying past discriminatory behavior. Using the argument that diversity is a strategic business necessity (e.g., to promote good will among minority customers) has not held up in court to date (See Taxman v. Board of Education of Piscataway (1993)). 4. Hiring based on quotas is: Illegal Legal Sometimes legal The Supreme Court ruled in City of Richmond v. J. A. Croson Company (1989) that a rigid numerical quota system is unconstitutional. However, in United Steelworkers v. Weber (1979) an affirmative action plan that included a voluntary quota system agreed to by both management and the union was allowed. To reach affirmative action goals, targeted recruiting and other plans should be employed and general goals set, not specific quota systems. Additional Activities Teaching suggestions The following suggestions and activities involve issues, such as race norming and interviewing individuals with disabilities, which are likely to be unfamiliar to students. These issues are likely to raise emotions, and instructors should probably lay some ground rules for discussion. For instance, feedback to other students should not attack the student himself or herself for a particular attitude, but discussion should relate to the diffi¬culty in reconciling a wide variety of perceptions in the practice of human resources (in other words, an organization may not be able to). This may upset the students' sense of order, but it is critical that they understand that there are not always "right" answers. For example, the reality that an organization can be sued for reverse discrimination when affirmative action is ordered by a court will confuse students but represents reality. Inviting other perceptions from students will allow students to under¬stand the range of perceptions that may exist and how their particular attitudes fit into legal and societal contexts. The topic of "politically correct" attitudes will arise, and hopefully students can recognize that in an academic environment, everyone has the right to discuss his or her attitudes. All students have the academic requirement to recognize the conse¬quences of actions in the organizational context, such as in issues related to sexual harassment. 1. Discuss with students what special challenges interviewing individuals with disabilities may have. Answer: Interviewing individuals with disabilities will pose special challenges: Background: ADA covers an estimated 43 million people. As of July 26, 1994, all employers with over 15 employees are subject to the provisions of ADA. There must be no questions on the application blank or within the interview that ask applicants whether they have disabilities. You can sensitize students to these issues by allowing them to role play an interview with a differently abled individual. It is possible that you could invite such an individual to help the class with this (there are often advocacy groups on campus who could be asked). You might try the interview "cold" first and then discuss with both the interviewer and interviewee what the problems were and where the interviewer was unsure of how to proceed. The differently abled candidate could present his or her perceptions about what went well and what could be improved. Typically, the differently abled will discuss his or her desire to be treated like everyone else (which, of course, the legislation also emphasizes). Following are some suggestions provided for interviewing the differently abled: Small talk might breach the law, such as what the candidate's spouse does for a living or whether the candidate has children (sex discrimination) or where a candidate went to high school (can be related to national origin). Stick to job related questions. Take notes with caution. An attorney recommends not writing down anything that you would not want a jury to see. You can't ask about health. You can ask the candidate to take a physical exam after making a conditional offer if you routinely make that request of all candidates. Courtesy issues: Regarding shaking hands, take what candidates offer you, whether hand or hook. Do not ask how a candidate became disabled. With a blind individual: If you have an obstacle course office, place the person's hand on the back of the chair or just direct him or her verbally to the chair. If there is a guide dog, the dog will guide the person. Do not lean on a wheelchair. This is personal space and you could make it roll. Sit down when talking to wheelchair users. Do not be overly protective. These persons have typically learned to be independent, and protective behavior will often be perceived as patronizing. Do not use terms such as handicapped, deformed, deaf, or deaf mute. Acceptable terms are blind, visually or hearing impaired, or multiply disabled. Do not ask how a disabled individual will get to work or go to the bathroom (again, this is not asked of other candidates). It is never wrong to ask "Is there anything you need?" but typically you should ask only once. For additional help: Guidance is available from the Equal Employment Opportunity Commission's Technical Assistance Manual on the Employment Provisions (Title D of the Americans with Disabilities Act), which explains the law in lay terms. The second of two volumes is a resource directory listing groups that can help with accommodations. Call (800) 669 EEOC. Hearing impaired individuals can call the TDD number at (800) 800 3302. The National Center for Disability Services provides training for inter¬viewers across the United States. Source: M. Hequet, "The Intricacies of Interviewing," Training, April 1993, pp. 31 36. 2. Case: Selecting Employees for Work Teams at Levi Strauss & Company. Levi Strauss is implementing a new manufacturing process at its Blue Ridge, Georgia, plant. The manufacturing process makes extensive use of work teams. The team based approach, known as the alternative manufacturing system (AMS), ties compensation and incentives to team goals. In the "old" manufacturing system, employees worked on small parts of garments, such as sewing pockets, then passed the garment to another employee who added another part, such as rivets. Employees did not see the finished product. With the AMS, employees will work in a horseshoe configuration, which provides team members with the opportunity to see each other's work. Team members have to work together to solve problems, such as the pile up of unfinished work. In AMS, managers will serve to coach and facilitate. Teams will receive over eight hours training to increase their understanding of production, budgeting, work flow, and product mix. Since Levi-Strauss has made a large investment in a new manufacturing process, they want to make sure that it will work. As a result, they want to choose employees who will help ensure the success of this manufacturing system. This is a nonunionized environment. They will first choose from current employees at the plant, and then look for new hires. Several options that may be used for selection are personality tests, cognitive ability tests, interviews, and mechanical ability tests. Many other options may be possible too. Pretend that you are the manager overseeing the new manufacturing operation. What recommendations would you have for HRM regarding what process and "tests" to use to select employees for the new manufacturing system? What types of information about the “tests” would you want in order to make you feel confident they would work? Suggestions A job analysis that specifies the job requirements should be done first. Students should be encouraged to consider techniques that are primarily job related and that focus on behavioral measurements. Since current employees are involved, the organization could consider a multiple hurdle approach. For example, a work sample in a team setting with trained observers assessing team skills such as cooperativeness, persuasiveness, and problem solving ability might be an excellent approach. Rather than using cognitive ability tests on current employees, volunteers might be elicited for training and to construct a test that would be content validated. Trainees would have to pass these tests to be selected for the job. Since there is so much more information available on current employees, an approach that emphasizes training and selection first from the inside might have higher utility than testing external applicants. The effectiveness of the approach could be examined by a predictive validation process that would correlate scores in the work sample and reining with subsequent performance on the job. If the techniques appear valid, they could be expanded or adapted as needed for use with both internal and external applicants. 3. Case: Selecting Patient Escorts at City Hospital. City Hospital is located in the heart of a large Midwestern city. City Hospital has about 1,200 beds and employs 4,500 individuals. The job of patient escort is simple, requiring only minimal training and no special physical talents. When patients need to be moved from one location to another, patient escorts assist in the move. Of particular importance is that patient escorts always take patients who are being discharged from their hospital room to the front door of the hospital. The job of patient escort is critical to the hospital, since the escort is always the last hospital representative the patient sees. Turnover among the escorts is quite high and has averaged 25 percent in recent years. In addition, upward mobility in the hospital is quite good. As a result, another 25 percent of the escorts typically transfer to other jobs in the hospital each year. The hospital follows a standard procedure when hiring patient escorts. The HR department reviews the files of applications of persons who have applied for the position. The top two or three applicants are asked to come to the hospital for an interview. The interview is first conducted by HR and then the patient escort supervisor. During the last two years, the hospital has experienced a number of problems with patient escorts that have affected the hospital's image. Several patients have complained that they have been treated rudely and/or roughly by patient escorts. Others stated that the escorts have been careless when wheeling them out of the hospital to their cars. It is difficult to identify which escorts are responsible for the problems. As a hospital administrator, you would like to see a selection process implemented that would eliminate the hiring of rude, insulting, or careless patient escorts. Poor escort service is hurting your hospital's quality goals. You have several thoughts about this. Perhaps the application form does not elicit enough information regarding the potential employee's personality (e.g., hobbies, outside activities, likes and dislikes). Perhaps the job candidates are not under enough stress in the interview. It the candidates are under stress, which might give some indication about how they would treat irritable patients. Maybe a personality test could be used to determine if the candidates have the right personality for the job. (Adapted from Nkomo, Fottler, and McAfee, Applications In Human Resource Management [Boston: PWS Kent, 1993].) a. What recommendations would you have for HR regarding what process and tests to use to select employees for the patient escort position? Answer: Job relatedness again is a critical issue. Personality tests, because of their unreliability, might pose legal problems. Focusing on previous experience working with people who are under high levels of stress would be important. Critical incidents in the interview could simulate particularly problematic patient situations to understand what the candidate would do. Since 25 percent of the patient escorts move into different hospital positions, perhaps this position should be seen less as entry level and more as requiring special traits. For example, the need for physical strength appears less critical than empathy and patience. Perhaps volunteers, retirees, or older job applicants would be more appropriate sources from which to recruit. b. What types of information about the tests would you want to make you comfortable that they would work? Answer: Validity could be examined by predictive validation techniques in assessing the value of demographic information such as previous experience and the interview results of critical incidents. It would be helpful (for reasons of quality control) to design a performance review system that could track the performance of patient escorts. A type of concurrent strategy may be used to examine the characteristics and experiences of current, successful job patient escorts and use these characteristics in recruiting and selecting. 4. Role Play in interviewing: Role-play can be done to illustrate how interviewing may miss critical issues. Students can be placed in dyads or triads ( two role players and one observer) to role play this interview. Students should be cautioned not to step out of role but play it seriously (sometimes role plays are difficult co maintain for long periods of time). Give the role play only to the person designated to play the role immediately before the role play will occur. Give students approximately 15 minutes to prepare to play their roles. Two role descriptions follow. Applicant Role: Edward Cunningham You are Edward Cunningham, the former assistant financial controller at Universal Plastic Company. You were in that position for four years and worked for Universal for six years. Last week, you were unexpectedly fired by your boss at Universal. There were several factors that led to your dismissal. They were: a. Three years ago, you and two co workers purposely damaged a new high speed forming machine at Universal. The company was unable to prove anything, but they strongly suspected that you were trying to sabotage the company. Actually, you made a dumb decision to accept a bribe from an official at National Plastic Company to do this. You did it because you desperately needed the money. Universal ended the matter by giving you a strong oral reprimand that was not documented in your personnel file. Very few people know about this. b. Last year, you had three sexual harassment charges filed against you. You felt that the charges were not justified since all you did was "pinch" the girls in the office a little bit. The company had you sign a settlement agreement, and you stopped "pinching" the girls. A written reprimand was placed in your personnel file and nearly everyone knew about in c. Two years ago, you failed the state accountant's certification test. Universal requires that financial controllers (and assistants) be certified. You took some extra courses and tried to pass the exam. You took the exam again at the special interim testing two weeks ago and failed again. Normally, the test is given every four years so it will be two more years before you have a chance to take it again. Universal was not willing to wait that long for you to pass. d. The final straw that led to your dismissal was the IRS ruling last week. You had implemented some modified accounting procedures at Universal and had saved the company $175,000. However, the procedures were ruled illegal and Universal was fined $450,000 in penalties and back taxes. The company placed nearly all the blame on you. Three weeks ago you saw an ad for a financial controller position at National Plastic Company. National is Universal's major competitor, and the competition has not only been fierce but downright nasty. You know that National likes to hire people from Universal, so you sent sour resume to John Hathaway, the administrative vice president at National. At the rime you sent the resume, you had not been fired and had not heard from the IRS regarding their ruling. You really want the job at National, and today you are scheduled to have an interview with John Hathaway. You will try to emphasize all your strengths in the interview, which you feel are the following: You have a master's degree in accounting (GPA 3.8). You are (were) the assistant financial controller at Universal and held that position for four years. You saved Universal $175,000 in the last three years by modifying some accounting procedures. You were awarded the Outstanding Community Member award by the Chamber of Commerce three years ago. You recently completed some advanced postgraduate courses in finance. You have worked for two companies (including Universal) since you graduated from college 10 years ago, and you progressed rapidly in both companies. You do not want John Hathaway to find out any of the negative information about you; however; basically you are truthful, so you will not lie in the interview. The most important point to disguise is that you were fired by Universal. You will emphasize your strengths in the interview with John Hathaway. Interviewer Role: John Hathaway You are John Hathaway, administrative vice president of National Plastic Company. The company has nationwide manufacturing locations and distribution centers. Product lines have historically been home use plastic products, but the company has recently expanded into the industrial market. The new product lines are specialty plastic products for several industries, which include forest products, steel, and textiles. As corporate administrative vice president, you are in charge of human resources, finance, public affairs, and office systems. Within the finance department are the usual functions, such as payroll, accounts receivable, accounts payable, internal auditing, and accounting. Four weeks ago, your financial controllers suddenly quit and rook a higher level position with National's major competitor, Universal Plastic Company. You tried to conduct an exit interview with the former controller, but were unable to get any useful information. The competition has been strong between National and Universal, and this is probably why the former controller was unwilling to talk. You advertised the position opening for two weeks and received 75 resumes. Based on a review of the resumes, you selected 10 for interviews. You have already interviewed nine of them, and you have not been very impressed with any of them. Nevertheless, one of the nine did have better qualifications than the other eight, and you will offer him the job, if neces¬sary. However, the applicant that you expected to be the best is going to come for an interview today. Because of some critically important financial project work that must be done, you will have to make a hiring decision today as soon as the interview is over. The tenth applicant is Edward Cunningham, who is currently the assis-tant financial controller at Universal Plastic Company. He has an outstanding track record, and following are some of the key points on his resume: He has a master's degree in accounting (GPA 3.8). He is the assistant financial controller at Universal and has been in that position for four years. He saved Universal $175,000 in the last three years by modifying some accounting procedures. He was awarded the Outstanding Community Member award by the Chamber of Commerce three years ago. He recently completed some advanced postgraduate courses in finance. He has worked for two companies (including Universal) since he grad¬uated from college l0 years ago, and he progressed rapidly in both companies. Edward Cunningham looks like an exceptional candidate, and you would like to find out even more details about him in the interview. Since Edward works for Universal (the unfriendly competitor), you will not be able to check his references there. If you did, you know from past experience that the only information you would get would be "name, rank, and serial number." You are not really concerned about Edward's technical knowledge since he has a master's degree, has recently completed some courses and has apparently demonstrated his knowledge on the job. Further, the state normally gives a certification test for accountants every four years, and Edward passed the test six years ago. Another consideration for the financial controller's position is the fact that Edward is a male. Although you know that a person's sex cannot be specified as a job requirement, it would be more helpful, from an EEO perspective, to have a male in that position. The entire department is 85 percent female, and one of your goals is to have equally balanced depart¬ments in terms of race and sex. HRM Failures Top Case 6: Pre-Employment Screenings: What’s Appropriate? At a public library in Oregon in 2004, Janet Lanier applied for work as a library page. The job duties included such tasks as reshelving books and occasionally working a youth service desk. The library offered Lanier the job, on the condition that she first submit to drug and alcohol testing—a pre-employment requirement recently adopted by the library’s municipality. After Lanier refused to take the test, claiming it was an invasion of her privacy, the library withdrew its offer. Lanier then sued the library, alleging that a pre-employment drug and alcohol test constituted unreasonable search and seizure—a practice barred by the Fourth Amendment to the U.S. Constitution as well as the Oregon state constitution. A district court found the testing policy unconstitutional. That ruling was later reversed on appeal. However, the appellate court said jobs that keep the public safe—for example, the role of police officer—could constitutionally require pre-employment drug and alcohol testing. At the same time, the court ruled that “suspicion less” screening—that is, testing candidates where no suspicion of substance abuse exists—is not justified. Employers should keep state and federal law in mind if they contemplate imposing pre-employment drug testing on job candidates. Question As an employer, how would you handle the matter of pre-employment screening? Possible answers Consider the job type and job description. Does the job have special requirements: working with infants or children, operating heavy machinery, or keeping the public safe? Consider possible job scenarios. Would the candidate come into contact with drugs—illicit or lawful? Does the job include handling or serving alcohol? Before finalizing and implementing your organization’s hiring process, have it vetted by an employment attorney. As an employer, handling pre-employment screening requires balancing the need for a safe and productive workplace with respect for candidates' privacy rights. Here's how I would approach it: 1. Job Relevance: I would implement pre-employment screenings, including drug and alcohol tests, only for roles where safety or security is a critical concern, such as operating machinery, handling sensitive information, or working with vulnerable populations. 2. Clear Communication: I would ensure that candidates are fully informed about the screening process early in the hiring process, including why it's necessary for the role they're applying for, and provide clear instructions and expectations. 3. Legal Compliance: I would ensure that all screening procedures comply with relevant state and federal laws, such as the Americans with Disabilities Act (ADA) and state privacy laws, and consult legal counsel to avoid discriminatory practices. 4. Fair Process: For roles where screening is required, I would apply the process uniformly to all candidates to prevent discrimination or bias, and I would include an appeals process for candidates who feel the results were unfairly used against them. 5. Alternative Measures: Where appropriate, I might explore alternative methods for ensuring a candidate’s suitability, such as behavioral interviews, reference checks, and assessments focused on job-relevant skills, rather than defaulting to drug testing. This approach balances the employer's responsibility to maintain a safe workplace while respecting candidates' privacy and adhering to legal standards. Case: Lanier v. Woodburn, 9th Cir., No. 06-35262 (3/13/08), 518 F.3d 1147; 2008 U.S. App. Lexis 5353. Source: James E. Hall, Mark T. Kobata and Marty Denis, Workforce Management, May 2008, http://www.workforce.com. Solution Manual for Human Resource Management Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright 9780077164126
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