Explain the advantages & disadvantages of hiring an external agency to conduct applicants’ background checks. How can HR justify the additional cost of using an external agency

no refernces and answer from you own word from chapter 8 and case.

Summer 2020

HRM410: Techniques of Employee Selection & Recruitment Weekly Assignment – (Turnitin) – 4 – (Sunday – 20/09/2020 –23:59 PM)

Coverage: Chapter 8

Name University ID No.

Refer to Chapter 8, read the Case Study and answer the questions. Case Study You have probably read over the years a number of stories in the press about employees – particularly in the medical, educational and caring professions – who have lied about their backgrounds and qualifications in order to obtain work. Some of these stories have had alarming outcomes; hence the press coverage. It would appear that due to the competitive nature of today’s job market, there is more temptation for some applicants to embellish the contents of their CVs. One medium-sized organization found themselves in difficulties recently when they appointed a finance director. His CV indicated that he had an impressive array of qualifications and was experienced in the industry sector. It quickly became apparent, however, that he was not up to the job. The HR manager was notified and was concerned to learn, four weeks after he commenced employment that a reference request to his former employer had been returned as ‘not known at this address’. Further investigations showed that the finance director did not have the qualifications that he claimed, and that he had been dismissed by one of his previous employers for alleged fraud, although he had not been prosecuted. The finance director remained unaware of the HR manager’s investigation until it had been completed and the decision was taken to dismiss him. This ‘damage limitation’ strategy was successful in that the company was not financially exposed, but the experience did cost the company time and money, and they then had to start the recruitment and selection process all over again. Source: Human Resource Practice by Malcolm Martin & Fiona Whiting, CIPD 2016

1. Explain the advantages & disadvantages of hiring an external agency to conduct applicants’

background checks. How can HR justify the additional cost of using an external agency? (50%)

2. Explain the difference between Credit Checks & Criminal Checks. For which kind of positions are such checks most crucial? (50%)

Techniques of Employee Selection & Recruitment

Chapter 8: External Selection 1

Muhammet Sait Dinc Muhammet.Dinc@aum.edu.kw

Textbook:

Heneman, Herbert Judge, Timothy A. and Kammeyer- Muller, John (8th Edition – 2014). Staffing

Organizations, McGraw-Hill Irwin. ISBN 13: 978-007- 108647-9.

mailto:Muhammet.Dinc@aum.edu.kw

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance

Planning

Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection: Measurement, external, internal

Employment: Decision making, final match

Organization

Mission

Goals and Objectives

Staffing Organizations Model

8-3

Chapter Outline

• Preliminary Issues • Logic of Prediction • Nature of Predictors • Development of the Selection Plan • Selection Sequence

• Initial Assessment Methods • Resumes and Cover Letters • Application Blanks • Biographical Information

• Initial Assessment Methods • References and Background Checks

• Handwriting Analysis

• Literacy Testing

• Genetic Testing

• Initial Interview

• Choice of Methods

8-5

Learning Objectives for This Chapter

• Understand how the logic of prediction guides the selection process

• Review the nature of predictors—how selection measures differ

• Understand the process involved in developing a selection plan, and the selection sequence

• Learn about initial assessment methods and understand how these methods are optimally used in organizations

• Evaluate the relative effectiveness of initial assessment methods to determine which work best, and why

• Review the legal issues involved in the use of initial assessment methods, and understand how legal problems can be avoided

8-6

Preliminary Issues

• Logic of prediction

• Nature of predictors

• Development of the selection plan

• Selection sequence

8-7

Logic of Prediction: Past Performance Predicts Future Performance

• Not specific enough to make selection decisions • Job titles

• Number of years of experience

• What counts is the specific types of experiences required and the level of success at each

8-8

Nature of Predictors

• Content • Sign: A predisposition thought to relate to performance (e.g., personality)

• Sample: Observing behavior thought to relate to performance

• Criterion: Actual measure of prior performance

• Form • Speed vs. power: How many versus what level

• Paper / pencil vs. performance: Test in writing or in behavior

• Objective vs. essay: Much like multiple-choice vs. essay course exam questions

• Oral vs. written vs. computer: How data are obtained

8-9

Development of the Selection Plan: Steps Involved

1. Develop list of KSAOs required for job • KSAOs are provided by job requirements matrix

2. For each KSAO, decide if it needs to be assessed in the selection process

3. Determine method(s) of assessment to be used for each KSAO

Ex. 8.3 Assessment Methods by Applicant

Flow Stage

•Initial assessment

methods

•Minimize the costs

associated with

substantive

assessment methods

by reducing the

number of people

assessed

8-10

8-11

Discussion questions

• A selection plan describes which predictor(s) will be used to assess the KSAOs required to perform the job. What are the three steps to follow in establishing a selection plan?

8-12

Resumes and Cover Letters

• Information provided is controlled by applicant • Information needs to be verified by other predictors to ensure accuracy and

completeness

• Major issues • Large number received by organizations

• Falsification and misrepresentation of information

• Lack of research exists related to • Validity or reliability

• Costs

• Adverse impact

8-13

Overview of Application Blanks

• Areas covered • Educational experience

• Training

• Job experience

• Key advantage — Organization dictates information provided

• Major issue — Information requested should • Be critical to job success and

• Reflect KSAOs relevant to job

• Sample application blank – Exh. 8.4

Sample Application for Employment

8-14

8-15

Application Blanks

• Areas of special interest • Educational requirements

• Level of education • GPA • Quality of school • Major field of study • Extracurricular activities

• Training and experience requirements • Licensing, certification, and job knowledge

• Weighted application blanks

• Evaluation –> ŕ = .10 to ŕ = .20

8-16

Biographical Information / Biodata

• Personal history information of applicant’s background and interests • “Best predictor of future behavior is

past behavior” • Past behaviors may reflect ability or

motivation

• Measures • Exh. 8.5: Examples of Biodata Items

• Biodata compared with background checks • Background check

• examines an applicant’s background • conducted through records checks

and conversations with references

• Biodata • used to predict future performance • information is collected by survey

8-17

Exhibit 8.5 Examples of Biodata Items

8-18

Evaluation: Biographical Information / Biodata

• Test-retest reliability can be high: .77 to .90

• Predictive validity moderate: r = .32 to .37

• Issues

• Generalizability beyond first group?

• Although predictive validity exists, it is not clear what these inventories assess

• Falsification can be a big problem

8-19

Reference Reports: Letters of Recommendation

• Problems

• Inability to discern more-qualified from less-qualified applicants

• Lack of standardization

• Suggestions to improve credibility

• Use a structured form

• Use a standardized scoring key

8-20

Reference Reports: Reference Checks

• Approach involves verifying applicant’s background via contact with • Prior immediate supervisor(s) or • HR department of current of previous companies

• Roughly 8 of 10 companies conduct reference checks

• Problems • Same as problems with letters of recommendation • Reluctance of companies to provide requested information due to legal

concerns

• Exh. 8.7: Sample Reference Check

8-21

Reference Reports: Background Testing

• Method involves assessing reliability of applicants’ behavior, integrity, and personal adjustment

• Type of information requested • Criminal history • Credit information • Educational history • Employment verification • Driver license histories • Workers’ compensation claims

• Key issues • Limited validity evidence • Legal constraints on pre-employment inquiries

8-22

Evaluation of Reference Reports

• Predictive validity limited: r = .16 to .26

• Validity depends on source providing information • HR department, coworker, or relative

• Supervisors

• What sources do you think work best?

• Cost vs. benefit of approach must be considered

8-23

Genetic screening

• Done to screen out people who are susceptible to certain diseases (e.g., sickle cell anemia) due to exposure to toxic substances at work

• Genetic screening is not widespread, companies such as Du Pont and Dow Chemical experimented with it to protect their employees

• Court decisions have ruled that genetic screening is prohibited under the Americans With Disabilities Act (ADA) • genetic testing is permissible only when consent has been granted by the applicant or when

test results directly bear on an applicant’s ability to perform the job

8-24

Initial Interview

• Characteristics • Begins process of necessary differentiation

• Purpose — Screen out most obvious cases of person / job mismatches

• Limitation — Most expensive method of initial assessment

• Video and computer interviews • Offers cost savings

8-25

Evaluation of Initial Interview

• Minimal evidence exists regarding usefulness

• Guidelines to enhance usefulness • Ask questions assessing most basic KSAOs

• Stick to basic, fundamental questions suitable for making rough cuts rather than subjective questions

• Keep interviews brief

• Ask same questions of all applicants

Choice of Initial Assessment Methods

8-26

Thank you

Explain the advantages & disadvantages of hiring an external agency to conduct applicants’ background checks. How can HR justify the additional cost of using an external agency

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