Strategic Insight on Selection Practices Impacting Firm Performance
Discover the strategic value of selection practices and their impact on firm performance through a study conducted with South Korean firms in various industries. The study reveals valuable insights on the alignment between environmental factors, HR practices, and the role of selection procedures in managing turnover rates.
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Presentation Transcript
Validity of Selection Procedures Aaliyah Bey & Danielle Russell
Strategic Value of Selection Practices Kim & Ployhart, 2018 How can selection create competitive advantage?
What is selection? Definition: Selection determines the acquisition and deployment of human capital resources
Competitive Environment External Internal Industry growth Industry dynamism Prior firm performance Collective turnover
Hypothesis Firms with more collective turnover use fewer selection practices than those with less turnover.
The Study 413 South Korean firms 3 industries: Manufacturing (283) Finance (28) Non-Finance Service (102)
The Study (cont.) Survey data from HCCP Financial Performance data Data goes back from 2004
The Study (cont.) Surveyed HR managers regarding their company s HR practices Selection practices listed Value = Operating Profit Per Employee
Results Hypothesis supported If a firm has high turnover, it is more valuable to use less selection practices
Takeaways Greater alignment between environmental factors and HR practices = greater performance External and internal factors should be taken under consideration when structuring a Selection Process. If a company finds itself with high turnover rates, it should scale back on selection practices
TRANSPARENCY OF ASSESSMENT CENTERS: LOWER CRITERION- RELATED VALIDITY BUT GREATER OPPORTUNITY TO PERFORM? By Ingold, Kleinmann, Konig, & Melchers
Key Terms Transparency: The degree applicants are informed about dimensions that are being assessed Impression Management (IM):Process in which people attempt to influence the perceptions of other people Self promotion Ingratiation
What is Criterion-Related Validity? The strength of the relationship between a measure (predictor) and its ability to predict the scores of another (criterion) Concurrent Predictive
What is an Assessment Center (AC)? Place that evaluates an individual s potential to perform behaviors relevant to the most critical aspects of a job.
Purpose Understand the effects dimension transparency has on: ACs validity Relationship between IM and job performance Fairness perceptions of the assessment center
Hypotheses 1. Ratings from a non-transparent AC are more valid in predicting performance than a transparent AC 2. Self-promotion in the non-transparent AC will be more positively related to supervisor-rated job performance than in the transparent AC 3. Perceived opportunity to perform is higher in the transparent AC than in the non- transparent AC.
The Study Simulated an AC Participants: 194 Assessees 73 Assessors 3 Facilitators
Measures AC performance 5 point scale Job performance 7 point scale IM & opp. to perform 5 point scale Cognitive ability Manipulation check
Results Cont. Perceived Opportunity to Perform Transparent Non-transparent Mean 3.30 3.26 SD .52 .60
Key Takeaway Hiring managers should not use highly transparent ACs ACs should not disclose the dimensions they test on
Group Takeaway It s complex!
