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FEVRET Charles

Semester 2 2009/10
MT0935A
Recruitment and Selection
Practice
Main Assessment

Module tutor: Brian Cunningham


University of Abertay Dundee

MT0935A DUNDEE BUSINESS SCHOOL

2372 words
Summary

Introduction................................................................1

1.Analysing competency based recruitment: Strengths


and weaknesses................................................................2

Competency based recruitment: definition....................2

Competency based Framework.....................................3

Competency Based screening.......................................5

Assessment centres ....................................................6

Psychometric tests......................................................6

Equal opportunities in employee resourcing..................7

2.Competency based recruitment: Influences on HR


planning ..........................................................................8

HR planning: definition................................................8

Competency based system impact on HR planning.........9

Conclusion..................................................................9

References................................................................10
Introduction
In today’s economy, companies have to overcome few financial
difficulties due to the crisis. It has hit the world economy also
through most of European companies from 2008 until today. The
employment market health is still not recovered from these tough
effects. “Overall, there are 23.1 million men and women out of work
in Europe, found the EU’s official statistics office Eurostat in its data
that relate to March.”(Brockett, 2009)

In order to face this situation companies have to make


decisions managing change as a challenge needed to cope.
“European unemployment increased more than economists
expected in February to the highest in almost three years as the
recession forced companies across the continent to cut
output.”(Van de Pol, 2009). Nowadays Human resource
management is one of the main means to achieve companies’
goals. “Considering the great number of challenges businesses are
facing the human resources leader plays a key role in facilitating
the change process and influencing the measures to be taken, not
only from the human resources standpoint, but from the entire
organization perspective.”(Rodriguez, 2009).

Because companies have to look very carefully to cost, it is a


strategic issue to recruit, select, develop and manage workforce
effectively. With the aim of achieving this, a several number of
recruitment and selection method have been instituted through
decades. One of these methods, Competency based recruitment,
seems to be now commonly used though UK: “UK’s Chartered
Institute of Personnel and Development (2005) found that well over
half (58%) of the 712 employers surveyed use competency-based
interviews” (Stuff, 2006). How effective is this method? Considering
that some of its bases are founded on the controversy science that

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is Psychology (for psychometric test), it can be interesting to debate
about the relevance of its use.

In addition to this, the technique is now employed out of the


recruitment domain. It can have an impact on few HR processes like
employees’ development or HR planning. ”It’s also about better
integration of elements of learning; integrating psychometrics into
an organisation’s personal development planning process or an
organisation’s competency models.”(Online recruitment magazine
website, 2010).

With the purpose of evaluating this method we will first analyse


Competency based recruitment in a critical way, discussing about
the pertinence of its use through its applications. We will also
examine equal opportunities in employee resourcing. And in a
second time, we will focus on the impact that competency based
recruitment can have on HR planning.

1. Analysing competency based


recruitment: Strengths and
weaknesses

Competency based recruitment:


definition

“The key competencies identified as required for the job then


often form the basis of a structured approach to the recruitment
and selection, appraisal, training and development of senior-level
employees” (Finch-Lees et al., 2005).

What are the issues of using competencies as a tool for


managing Human resource in a company?

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Competencies could be explained as characteristics that are
part of a person regarding his personality and his professional
qualifications. “Essex County Council defines competencies as
‘Individual characteristics or skills which can be both measured and
shown to make a difference to performance’” (Stuff, 2006). A
competency based framework is a defined group of these same
characteristics selected by a company according to its needs but
also to its strategy. Evaluating competencies can be done in many
different ways: situational (role playing), past experiences review,
psychometric tests etc...

A competency based Human resource management can be


implicated in several areas. “Essex Competency Framework […]
was designed for use in recruitment, selection, performance
management and staff development, and ensures that we take a
consistent approach to resourcing.” (Stuff, 2006) The case study
especially focuses on the Recruitment and selection approach.
Within these two domains there are already multiple aspects of its
use: Defining a competency based framework, advertising a
competency based Job post, using a competency based resourcing,
screening applicant and selection based on competency (with for
instance competency-based interviews).

Competency based Framework

The framework is a strategic tool: The use of competency based


framework in a company is a means to define and diffuse its goals,
strategy and culture. A Competency based framework is a definition
of all the business’ needs through a inventory of all competencies
related to its activity and its strategic management view. It gives
the employees a clear overview of it. Therefore it enables them be
aligned with it. “The primary outcome of competency models is
aligning individual behavior with organizational strategies, goals,
and values through translating those values and strategies into

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specific behaviours.” (Özçeli & Ferman, 2006 P.88). It is also clearly
explain in the case that the essex city council is a means for
instituting the corporate strategy. “The framework has been in
place for around five years and is described as “the glue” that holds
together the various parts of the council’s people management
strategy.” (Stuff, 2006). It is also the case for Vodaphone: “The
company has developed six competencies to support its corporate
strategy and these are applied throughout the business.” (Stuff,
2006).

Employees have a basis for self-evaluating themselves. They


can goal what skills or behaviour they need to improve if they want
to ascend within the hierarchy. “Employees have a set of objectives
to work towards and are clear about how they are expected to
perform their jobs.”(Hogg 2009).

However there are a few points to consider about these


frameworks that can make them less effective.

First Frameworks are based on data that have already been


collected which means that it is past information. So if the
frameworks is not often updated then recruitment, for instance, will
be irrelevant. “there is nothing fundamentally new in the
competency-based approach [...] its ubiquity may be
counterproductive in an exponential world where constant
reappraisals of skills, attributes and behaviours are
required.”(Derek & Pope 2008 P.81).

Secondly the frameworks have to be well written, easy to


understand and reflect in the same time, all the company’s needs
and activity, but also, its strategy. It is a complicated to achieve
this, it required lots of work and analyses to produce it and maintain
it. Moreover such important inventory of competencies may not be
easy to read in a big company “They are unwieldy and not user
friendly”(Hogg 2009).

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Thirdly we may think that an exact definition of what employee
must do for one job is a barrier to creativity. “One of the
fundamental challenges of the competency approach is the risk of
restricting the diversity in the organization, because all the
members are obliged to apply the same corporate-wide
competency standards. This may limit innovation and the diversity
of ideas in the organization.” (Özçeli & Ferman, 2006 P.89)

Competency Based screening

The use of competency gives clear goals to applicant and


employees. Potential employees will know exactly the behavioural
and technical competencies that are required. So they can evaluate
if the job fits them or not on job advertisements: the company may
have more accurate candidates. “Essex County Council’s
competency headings are supported by a series of measures that
inform what behaviour is expected of employees and potential
employees.” (Stuff, 2006). However we must notice it is important
that Job advert has to be drafted with care as Stuff underline it in
the case at the end of the second paragraph of the part “early
stage”.

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Assessment centres

Assessment centres use exercises that involve candidates in


situations that must assess his competencies. “Process involving
the multiple application of different tools such as role play,
presentations and group exercises” (Stuff, 2006)

From the case we can notice that this method has been
criticized. Stuff explained about the “exercise effect”. Behaviours
can depends on the exercise played and two different exercises can
produce two different result with a same competency evaluated. So
to be effective there is a need for a high number of exercises per
competency (at least three from Stuff viewpoint).

Also we can think that the applicant is playing what he would


do in a situation perhaps this does not reveal what he will really do.

One disadvantage of using assessment centres may not be


profitable for a post. So the company needs to consider carefully
the type of vacancy reflecting on the necessity or not for the use of
assessment centres. “The cost of an assessment centre needs to be
compared with the potential cost of recruitment error (probably
between £5,000 to £50,000, depending on seniority and potential
for business errors).” (Grayson 2009)

Psychometric tests

Psychometric tests are tools created from psychology in order


to evaluate different aspect of a person as its intelligence and
ability explains the CIPD. As we noticed it in the introduction there
is an old debate about considering Psychology as an exact Science
because it is a science of mind. Findings on mind are not considered
by everybody as relevant because of the complexity of such a
system. ”All science only approaches closure in the laboratory;
outside of the laboratory, the world is radically open. Although

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scientific theory is equally valid in and out of the laboratory, it is not
sufficient to explain behaviour, nor is it easily applied.”(Manicas
1983 P.399)

Competency based Interviews

A competency based interview use questions about how an


applicant behaved in a precise situation in his past (behavioural) or
what he will do in a certain situation (situational). This type of
interview does not focus on the employee’s qualification but on its
potential abilities for the Job. It may enable the company to find a
candidate not too that will perform better in the job after training
than a high qualified candidate that won’t improve it behavioural
competencies. So the company is investing on a long term view.

However Derek & Pope explains that competency based


interview are now often applied without a previous reflection on its
relevance and the way of using it. This will lead the interviewers to
miss some important issues like his character and values. From
Derek & Pope points of view a competency based interview is often
too restricted. “An assessment should be thoughtful, multifaceted
and give a real insight into the character and values, as well as the
capability of an individual. Behavioural competence can inform the
interviewer’s assessment but should not hamstring it.”(Derek &
Pope 2008 P.86)

Equal opportunities in employee


resourcing.

As we noticed in the previous part a competency based


recruitment will focus on the potential abilities that an applicant can
bring in the future. The goal is to evaluate his behavioural and
functional competencies more than his professional “written”
qualifications.

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Such a system is often seen as fair because applicants are not
evaluated on their level of study or past jobs. So people who come
from a modest background have the same chances as people who
come from a wealthy background that were able to pay for an
expensive Graduate Business School. “Benefits of a competency-
based system: The appraisal and recruitment systems are fairer and
more open.”(Hogg 2009).

However we can also consider that high qualified applicant


should have a distinguished consideration because they learn more
and pay for it. It discredits graduate studies that are supposed to be
nationally recognised and communication skills have more
important place. “It is even questioned whether the importance of
professional knowledge will diminish in favour of ‘fuzzy’ social and
communication skills” (Van der Klink and Boon, 2002 P.421).

Another point to be noticed is that it is humans who interpret


the competency of the potential employee and therefore there is
still a risk for discrimination… “There is little recognition (of
assessors) of the impossibility of evaluating competencies
objectively when in practice the competencies inevitably require
subjective interpretation” (Kirton & Healy, 2009 P.316).

2. Competency based recruitment:


Influences on HR planning

HR planning: definition

“Rigorous HR planning links people management to the


organization's mission, vision, goals and objectives, as well as its
strategic plan and budgetary resources. A key goal of HR planning
is to get the right number of people with the right skills, experience
and competencies in the right jobs at the right time at the right
cost.” (Government of Canada human resources site, 2001)

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Competency based system impact on HR
planning

The use of a competency based framework enables the Human


resource managers to have a clear definition of all competencies
required in the company. This is an effective tool to analyse the
environment while planning human resources (if updated regularly):
it enable analysing which skills are needed also defining the degree
of difficulty of finding such skills from the employment market.

Training is facilitated by the fact that employees’ level can be


clearly situated as measured by the framework. They can self-
evaluate themselves and see what competencies they need to
acquire or improve if they want to evolve in the company. (Byham,
1997 P.18)

“This early evaluation has proved to be very effective in helping


to recruit the right people for the jobs, and has prompted a
reduction in the company’s staff turnover from 40% to 25%.”(Stuff,
2006) A low turn-over, as hired persons are supposed to be more
aligned with the company’s goals and strategy, clearly facilitate the
planning of Human resources.

So a competency based human resource management seems


to help the planning of human resources. Nevertheless the
competency framework needs to be well structured, well written
and updated frequently to provide an effective planning method to
HR practitioners.

Conclusion
As an established method for recruiting, competency based
recruitment can improve few aspects of Human resources
management. For instance the diffusion of the company’s strategy,

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the planning of human resources or the management of training
can be facilitated by a well structured competency based
Framework.

Nonetheless it is important to use this system with care. The


installation of defined competency could be a barrier to creativity in
the company. Also the interpretation by human of competency
based tests can bias them. Competency based recruitment could be
less accurate for certain job or not profitable for the company.
That’s why it’s important to use tools that have been used and
evaluated many times as effective before employing it. It is also
necessary to analyse well the company’s structure, strategy and
goals to institute this king of system. If the competency based
framework is not well designed the entire system could be
ineffective with time and cost wasting.

References
Brockett J. 2009. Unemployment still rising across Europe,
figures show (Online magazine for the CIPD). [online] Available at:

http://www.peoplemanagement.co.uk/pm/articles/2010/05/unemplo
yment-still-rising-across-europe-figures-show.htm [Accessed 25th
April 2010].

Byham W. C. 1997. Developing dimension-/competency based


human resource systems. Development Dimensions International,
Inc. P.18.

Derek M. P. & Pope J. 2008. Competency-based interviewing –


has it gone too far? Industrial and commercial training Vol.40(2), p.
81-86.

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Finch-Lees, T., Mabey, C. and Liefooghe, A. 2005. ‘In the name
of capability: a critical discursive evaluation of competency-based
management development’. Human Relations, 58(9), 1185–1222.

Government of Canada human resources site, 1999. Building


Successful Organizations Workforce Planning in HHS. [online]
Available at:

http://www.hhs.gov/ohr/workforce/wfpguide.html [Accessed 28th


April 2010].

Grayson P. 2009. Assessment centres for recruitment and


selection. (CIPD Website) [online] Available at:

http://www.cipd.co.uk/subjects/recruitmen/selectn/asscentre.htm
[Accessed 25th April 2010].

Hogg C. 2009. Competency and competency frameworks. (CIPD


Website) [online] Available at:

http://www.cipd.co.uk/subjects/perfmangmt/competnces/comptfrm
wk.htm [Accessed 25th April 2010].

Kirton G. and Healy G. 2009. Using competency-based


assessment centres to select judges – implications for equality and
diversity. Human Resource Management Journal, Vol 19(3), pages
302–318

Manicas, Peter T.; Secord, Paul F. 1983. Implications for


psychology of the new philosophy of science. American
Psychologist. Vol 38(4), Apr, P.399

Özçeli G. and Ferman M. 2006. Competency Approach to Human


Resources Management: Outcomes and Contributions in a Turkish
cultural context. Human Resource Development Review 72(5)

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Online recruitment magazine website, 2010. Psychometrics -
now affordable for everyone and not just about recruitment. [online]
Available at:

http://www.onrec.com/news/psychometrics_now_affordable_for_eve
ryon [Accessed 28th April 2010].

Rodriguez I., 2009. Human resources in response to the


economic crisis l.7. Caribbean business 24th September.

Stuff, R. 2006 ‘The right person for the right role: using
competencies in recruitment and selection’ Competency &
Emotional Intelligence, Vol. 13, No. 3. pp. 20 – 27.

Van de Pol J., 2009. Europe Unemployment Rate Rises More


Than Expected (Bloomberg). [Online] (Updated April 1, 2009)
Available at:

http://www.bloomberg.com/apps/news?
pid=20601087&sid=aFyfeODyoz1k [Accessed 25th April 2010].

Van der Klink, M. and Boon, J. (2002). ‘The investigation of


competencies within professional domains’. Human Resource
Development International, 5(4), 411–424.

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