AMITY BUSINESS SCHOOL

HUMAN RESOURCE MANAGEMENT

SELECTION

SUBMITED TO: COL. (DR.) ARUN KUMAR PANDEY

SUBMITED BY: STUTI PRASAD (D-3) ANU RATHEE (D-9) ILA JAIN (D-10) SURBHI MAHAJAN (D-15) YUKTA ANAND (D-16) CHARTI POHOJA (D-18)

SELECTION Selection is the process of differentiating between the applicants in order to identify and hire those with a greater likelihood of success in a job. A large number of applicants apply for a job and selection is the process of picking the right candidate possessing the requisite qualification and competency to fill the vacancy from the pool of job applicants. Here we are focusing on selection externally that is from outside the organization. Recruitment and selection are two terms that are often used interchangeably however there is a distinction between the two. Recruitment is the process of identifying and encouraging prospective employees to apply for jobs while selection is the process of picking up the right candidate for the job from a pool of job applicants. Recruitment is a positive approach as it seeks to attract as many candidates as possible. On the other hand, selection seeks to eliminate as many unqualified applicants as possible in order to select the right candidates for the job. The role o selection is very crucial in an organizations effectiveness because of mainly two reasons. The first reason is work performance of the individual, which depends on the selection of the right candidate for the job. To get the best performance from an individual, such Candidates should be hired who are highly willing and motivated and also competent to do the job. Hiring the wrong person for the job can be highly demoralizing to the individual and also demotivating for the rest of the workforce. The second reason is that the cost incurred in the process of recruitment and hiring is very high and the cost goes up as we move up the level. There are also consultants who charge heavy fees for the process of selection. They charge around 20-50% of the salary of the first year of the selected candidate. Hence, if the salary of the candidate is Rs.2lakhs per annum, then the consultant might charge from Rs.40,000 to Rs.1,00,000, hence this process is quite an expensive affair because hiring the right person for the job is extremely important, Costs of wrong selection are much greater. Lets first see what can be the outcomes of a wrong selection. Failure Predicted Success Predicted
Success Failure

False Negative Error True Negative (Low Hit)

True Positive (High Hit) False Positive Error

Failure predicted means that during the process of selection we had predicted that the candidate will be a failure and hence not fit for the job and hence we did not hire him for the job. Success predicted means that we had predicted that the candidate will be a success in the job and hence, we hired him. True positive is the best for an organization because it means that we had predicted that the candidate will be successful in the job and he actually was successful. True negative means that we had predicted that the candidate will be a failure and he actually would have ben a failure if he would have been hired, although it is difficult to identify this. False negative is an error because we had predicted the candidate to be a failure although he would have been successful if he would have been hired although again it is difficult to identify this. False positive is the case in which we had predicted the candidate to be successful and he was hired but in reality he was a failure. This is a wrong decision and hence it involves three types of costs. First is the cost incurred when the candidate is already employed which could be due to increased absenteeism, accidents due to negligence etc. The second type of cost is related to training, transferring or terminating the services of the employee. The third type of cost is related to cost of hiring, training and replacement of the employee with a fresh candidate. A false negative error is unidentifiable and hence the cost incurred because of it is also difficult to calculate.

Before beginning with the selection process we need to understand that no business exists in vacuum and is surrounded by an environment. The business environment of any organization can be divided into two categories namely, the internal environment and the external environment. Internal Environment is that environment which is within the control of an organization and comprises of internal factors like the recruitment policy, HRP, Size of the firm, cost of hiring and future growth and expansion plans, while the external environment is that environment which is beyond an organizations control comprising of external factors like supply and demand of skills, labor market conditions, unemployment rate, political and social issues and the company image. Internal factors that affect the selection process are: 1. Recruitment Policy: The recruitment policy of a firm largely affects the selection process and it may contain issues like the job title, description of the job location, key responsibility areas (KRAs), hours of work etc. It may also specify the method of short listing candidates in the sense that candidates with a certain score in the selection tests shall be selected with the second highest and subsequent scorers being kept as reserve candidates for future openings. The policy shall specify the means of contacting selected candidates i.e. through e-mail or telephone and also

whether unsuccessful candidates be contacted and sent letters of regret, if yes, then means to send such letters. 2. Human Resource Planning: Effective HRP affects the selection process since it helps in analyzing the correct human resource requirement and enables the selectors to decide upon the requisite number of candidates. 3. Size of the firm: A big firm will have a larger human resource requirement as compared to a smaller firm. For e.g. a big firm will find recruitment and selection problematic since its HR requirement is large and hence scrutiny of applications will be time consuming and a long process. 4. Cost of Hiring: Recruitment cost is calculated per new hire and therefore, selectors will have to operate within budgets. For e.g. selecting for multiple job openings simultaneously will help reduce hiring cost per new employee per job. The selectors have to ensure that the process is cost effective and efficient. 5. Future growth and Expansion: An organization that is witnessing growth and future expansions will have a larger manpower requirement as compared to a firm witnessing declining fortunes. Selection in such situations will either become difficult and time consuming or easy, affordable and quick respectively. External factors that affect the selection process are: 1. Supply and demand of skills: This is an important factor that affects the selection process. If the demand of particular skill is high relative to the supply of that skill in the labor market, an extraordinary selection effort shall be needed. For e.g. the demand for programmers and analysts in the corporate sector is usually high compared to the supply of such candidates and thus enormous selection effort I required. 2. Unemployment Rate: This refers to the no of people who are unemployed in a given area and at a certain point in time. If the unemployment rate in a given area is high, the selection process will be simpler since there will be a large pool of candidates who would apply to a current vacancy and the selectors will have a wide variety. On the other hand, if the unemployment rate drops, selection efforts have to be stringent and new sources should be explored. 3. Labor market conditions: These conditions are of primary importance in selecting for nonmanagerial, supervisory and middle management positions. If there is a surplus of job applicants in the labor market, there will be a large pool of prospective candidates and the company has wider choice in selection and vice versa. 4. Political and legal issues: Giving preference in employment as a result of reservations for SCs, STs, minorities and other backward classes is an external factor that affects selection of

Candidates. In such cases the company has little or no choice in selecting candidates whom they think are eligible or not eligible.

SELECTION PROCESS

PRELIMINARY INTERVIEW

SELECTION TEST

EMPLOYMENT INTERVIEW

REFERENCE AND BACKGROUND CHECK

SELECTION DECISION

PHYSICAL EXAMINATION

JOB OFFER

CONTRACT OF EMPLOYMENT

EVALUATION

1. PRELIMINARY INTERVIEW: Once the applications from job seeker are received they are scrutinized to eliminate the unqualified candidates based on the information provided in the application form, which I followed by a preliminary interview. It is more or less similar to scrutiny of applications as it helps reject misfits for the reasons not very apparent in the application form. Its known as a courtesy interview also and is a good public relation exercise. 2. SELECTION TESTS Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Tests are generally used to determine the applicants ability, aptitude and personality. Different types of tests are as follows: A. Ability Test: They are also known as achievement tests and they assist in determining how well an individual can perform tasks related to the job. It tests that if a candidate claims to know something then how well he knows it. For e.g. Data entry tests can be administered for secretarial job or a dictation and typing test can be conducted for the job of a stenographer. B. Aptitude Test: These tests determine a persons potential to learn in a given area. It shows how well a job can be performed through imparting proper knowledge. There are different types of aptitude test like mental intelligence test, intelligence test, interest test etc. C. Personality Test: These tests are conducted to measure a prospective employees motivation to function in a particular working environment. There are different types of personality tests like The Bern enter Personality Inventory which measures ones self sufficiency, neurotic tendency, sociability, introversion and extroversion, locus of control and self-confidence. The Thematic Apperception Test (TAT) assesses an individuals achievement and motivational levels. Other tests can be like California Psychological Inventory (CPI), the Thurston Temperament Survey (TTS), Minnesota Multiphase Personality (MMPI) and Guilford-Zimmerman Temperament Survey etc. assess different personality traits. D. Graphology: It is designed to analyze the handwriting of an individual which suggests the degree of energy, inhibitions and spontaneity, the idiosyncrasies and elements of balance and control. For e.g. big letters with emphasis on capital letters indicate a tendency towards domination and competitiveness. Likewise, a slant towards the right with moderate pressure and good legibility shows good leadership potential. These tests are usually conducted through graphologists. E. Polygraph: A polygraph is a lie detector. This type of test is designed to ensure the accuracy of the information provided by the job applicants in the applications.

Department stores, jewellery shops, banks and treasury offices etc. which are highly vulnerable to theft and swindling may find polygraph tests very useful. F. Medical Tests: These tests reveal the physical fitness of a candidate. G. Drug Tests: This test helps to measure the presence of illegal or performance affecting drugs in an applicant. H. Genetic Screening: It identifies genetic predispositions to specific medical problems. Medical servicing helps measure and monitor a candidates physical resilience upon exposure to hazardous chemicals. CHOOSING THE RIGHT TEST The kind of selection test to be chosen should be based on reliability, validity, objectivity and standardization. Reliability refers to standardization of the procedure of administering and scoring the result. For example if a person take a test before joining an organization and makes 200 will be made to give the test again after joining and he should now score around 200 as an individuals intelligent is an stable characteristic. A test should not produce deviation in its result as it will be not a good choice Validity helps to predict that whether a person will be successful in a given job. A validated test helps to differentiate between an applicant and a prospective employee. It just helps to increase the possibility of success. Objective test consist of questions requiring short answers or multiple choice questions that can be quickly answered thus minimizing subjective judgments by the person appearing and the invigilator Standardization test refers to obtain standard or normal result of a large number of applicant appearing are a representative of the prospective applicant.

3. EMPLOYMENT INTERVIEW:Interview is conducted to evaluate applicants acceptability. 1. There are four key words to describe this interview:a. formal it is a formal conversation b. In depth conversation not much can be known about the candidate by just looking at the resume. Through interview various other skills and personality traits are measured. c. Two way flow of information the company gets to know about the candidate and the candidate gets to know more about the company like company policies. d. Flexible it can be adapted to unskilled, skilled, managerial and professional employees.

Objectives of the interview:-

a. The company gets to know the applicant better b. The applicant gets to know more about the company. c. It helps the company to build an image among the applicants.

Types of Interview A. One to one interview B. Sequential interview C. Panel interview

A. One to one interview In this there are two participants the interviewer and the interviewee.

B. Sequential interview It is a series of one to one interview where an applicant in interviewed by many interviewers but separately. It utilizes the strength and knowledge base of every interviewer. C. Panel interview Here, the interviewee faces may interviewers together. The panel may range from 2-15. This type of interview can provide a wealth of information but it should be handled very carefully otherwise it may lead to a lot of confusion. The interviewee may get confused that whom should he answer first and the interview may get confused that who out of them will ask the next question. 2.a. Structured A list of preset questions is with every interviewer. They ask questions from only that list. It is used when there are a large number of applicants and a comparison between them has to be made. B. Unstructured There are only a few preset questions if any. And questions are made during the interview. It is used when the interviewer is interested in the personal details of the candidate. C. Mixed It is a mix of both structured and unstructured form of interview. It is used when candidates are needed to compared as well as so that they can be checked at their personal details also. D. Situational

The candidate is asked hypothetical questions and the interviewers try to judge the candidate on the basis of his reasoning. It is used to check candidates reasoning and logical thinking. E. Stressful It is stressful because the candidate is attacked by a lot of questions at the time. It usually makes the candidate upset and he feels unconfident. It is done where the post to be assigned is very stressful. E.g. in complaint department.

Common interview problems:1. Sometimes the interviewers make judgment about the candidate as soon as he enters the room. They make their perceptions. 2. Sometimes the interviewer judges the candidate by just one trait. Eg.English / communication skills. This is known as Halo effect. 3. Every interviewer has his own view point. They might give different weight age to different skills of the candidate. 4. Sometimes the interviewers do not give enough time to discuss the candidate after he has been interviewed. 5. In sequential interviews, by the time the interviewers meet to discuss the candidates, they might forget the specific qualities of some employees.

Steps to overcome these problems:1. If the candidate feels nervous, the interviewers should make him feel comfortable by either passing him a smile or asking him to relax. 2. The interviewer should not judge the candidate by just a single trait. They should try to evaluate the candidate on the basis of all its skills. 3. The interviewer should discuss the candidate just after interviewing him so that there is no confusion later on. 4. The interviewer should encourage the employee to talk. 5. Maintain control over the direction and time taken for the interview. 4. REFERENCE AND BACKGROUND CHECKS:Often employees are asked to give details of their previous employers, university, professors or neighborhood so that they can be known better through these sources. Who can give the employer the true picture of the candidate other than his previous employer? There are some problems in this step:-

1. The candidate will give the reference of only those people of whom he is sure that they will give a positive feedback. 2. The previous employer may expressively give only good feedback when they themselves want the candidate to leave their organization. 3. The previous employer may expressively give only good feedback when they care for the employees bright future.

Reference check covers the following:Character Reference Civil record checks Criminal record checks Credit record checks Previous employment Educational units Union affiliation checks Neighborhood reference check

5. SELECTION DECISION: It is the most critical step and is made only after obtaining information through the preceding steps. The other steps have been used to narrow the number of candidates but here the final decision has to be made from the pool of individuals who pass the tests, interviews and reference checks. For example, in 2003, Infosys received one million applications of which only 10,000 were finally hired. The views of the line manager are generally considered in the final selection because he is been responsible for the performance of the new employee. The HR also plays a crucial role.

6. PHYSICAL EXAMINATION: After the selection decision, the candidate is required to undergo a physical fitness test.

A job offer is often contingent upon the candidate being declared fit after the physical examination. The results of the medical fitness test are recorded in a statement and are preserved in the personnel records. Objectives behind a physical test are: 1. To detect if the individual carries any infectious diseases. 2. It assists in determining whether an applicant is physically fit to perform the work. 3. To determine if there are certain physical capabilities which differentiate successful and less successful employees 4. Medical check-up protects applicants with health defects from understanding work that could be detrimental to them or might endanger the employers property. 5. It protects the employer from workers compensation claims that are not valid because the injuries or illness were present when the employee was hired.

7. JOB OFFER: It is for those applicants who have crossed all the previous hurdles. It is made through a letter of appointment. Such a letter generally contains a date and a reasonable time by which the appointee must report on duty. The rejected applications may be preserved for future use, if any.

8. CONTRACTS OF EMPLOYMENT: After the job offer has been made and the candidates accept the offer, certain documents are needed to be executed by the employee and the candidate. One such document is the attestation form. This form contains certain vital details about the candidate which are authenticated and attested by the candidate only. It is used as a valid record for future reference. There is also a need for preparing a contract of employment. The basic information that should be included in it will vary according to the level of the job but, the typical headings include1. Job title 2. Duties, including a phrase such as The employee will perform such duties and will be responsible to such a person as the company may direct from time to time.

Date when the continuous employment starts and the basis for calculating service Rate of pay, allowances, overtime and shift rates, method of payments Hours of week including lunch break and overtime and shift arrangements Holiday arrangements i. paid holidays per year ii. calculation of holiday pay iii. dates when holidays can be taken iv. maximum holidays that can be taken at any one time v. public holidays 7. Sickness i. pay for time lost ii. duration of sickness payments iii. termination due to continued illness iv. notification of illness(medical certificate) 8. Length of notice due to and from employee 9. Grievance procedure 10. Disciplinary procedure 11. Work rules 12. Arrangements for terminating employment 13. Arrangement for union membership 14. Special terms relating to rights to patents and designs, confidential information and restraints on trade after termination of employment 15. Employers right to vary terms of the contract subject to proper notification being given. High employee turnover sectors such as software like Wipro, advertising and media are more prone to use such contracts.

3. 4. 5. 6.

CONCLUDING THE SELECTION PROCESS: The selection process doesnt end with executing the employment contract. There is another step which reassures those candidates who have not been selected. Such candidates must be told that they were not selected because their profiles did not match the requirements of the organization and those who were selected were done purely on relative merit.

9. EVALUATION OF SELECTION PROGRAMME: The broad test of the effectiveness of the selection process is the quality of the candidate been hired. The organization must have competent and committed employees. Evaluating the effectiveness of a selection programme is done by a periodic audit. Audit must be conducted by people who work independent of the HR department.

BARRIER OF SELECTION PROCESS The main aim of selection process is to hire a competent and committed employee. But sometimes a process may or may not go as planned. Some hurdles might come in between the process. These barriers are Perception refers to see, hear or become aware of something through our senses. But sometimes an interviewer may or may not understand others accurately so probably perception is the basic barrier in selecting the right person. Human beings are complex in nature so to understand them is not easy. Therefore it is quite difficult to judge anybody and due to this many a times a psychologist is also sitting in the interview panel. Fairness should be maintained in the selection process such that no individual is discriminated on the basis of caste, sex, religion, race or region. But due to less women and other less-privileged section of society present in the management position this is quite difficult to practice. Moreover open discrimination on the basis of age has been very much prominent in the selection process and job advertisements. Reliability is a type of test which produces consistent result when repeated over a period of time. But this test is not precise so not accurate enough. Validity is also a type of test which helps to judge the job performance of an applicant. This same as reliability test is also not accurate and it just increases the possibility of success. Pressure is brought to the selection team by politicians, peers, bureaucrats, relatives and friends to select a particular candidate. These candidates are generally a not the right one and can be an error. This type of barrier is generally seen in public sectors.