Organizational Issues Just as the external labor market can be divided into segments

or strata of workers believed to be desirable job applicants, so, too, can the internal
labor market of an organization. This division is often done inside organizations on an
informal basis. For example, managers might talk about the talented pool of managerial
trainees this year and refer to some of them as high-potential employees. As another
example, people in the organization talk about their techies, an internal collection of
employees with the technical skills needed to run the business. At a more formal level,
organizations must create a structured set of jobs for their employees and paths of
mobility for them to follow as they advance in their careers. To do this, organizations
create internal labor markets. Each internal labor market has two components: mobility
paths and mobility policies. Mobility paths depict the paths of mobility between jobs.
Mobility policies cover the operational requirements needed to move people between
jobs.
Mobility Paths A mobility path consists of possible employee movements within the
internal labor market structure. Mobility paths are determined by many factors, including
workforce, organization, labor union, and labor market characteristics. Mobility paths are
of two types: traditional and innovative. Both types of mobility paths determine who is
eligible for a new job in the organization.
Traditional mobility paths Examples of traditional mobility paths are shown in Exhibit
6.1. As shown, the emphasis is primarily on upward mobility in the organization. Due to
the upward nature of traditional mobility paths, they are often labelled promotion
ladders. This label implies that each job is a step toward the top of the organization.
Upward promotions in an organization are often seen by employees as prizes because
of the promotions desirable characteristics. Employees receive these prizes as they
compete against one another for available vacancies. For example, a promotion might
lead to a higher rate of pay, and a transfer may result in a move to a better work
location. Research has shown that these competitions may be contested, as
opportunities for upward advancement are limited in most organizations.1 An exception
to the primarily upward mobility in the promotion ladders in Exhibit 6.1 shows the lateral
moves that sometimes occur for the staff member who has both generalist and
specialist experiences as well as corporate and division experience. This staff member
is considered more well-rounded and better able to work within the total organization.
Experience as a specialist helps the person be familiar with technical issues that arise.

Innovative Mobility Paths Examples of innovative mobility paths are shown in

Exhibit6.2. The emphasis here is no longer simply on upward mobility. Instead,
movement in the organization may be in any direction, including up, down, and from
side to side. Employee movement is emphasized to ensure continuous learning by
employees such that each can make the greatest contribution to the organization. This
is in direct contrast to the traditional promotion ladder, where the goal is for each person
to achieve a position with ever-higher status. Many organizations have shifted to
innovative mobility paths for two reasons: (1) There is the need to be exible given
global and technological changes, and (2) slower organizational growth has made it
necessary to nd alternative ways to utilize employees talents. Parallel tracks allow for
employees to specialize in technical work or management work and advance within
either. Historically, technical specialists had to shift away from technical to managerial
work if they wanted to receive higher-status job titles and pay. In other words, being a
technical specialist was a dead-end job. Under a parallel track system, both job titles
and salaries of technical specialists are elevated to be commensurate with their
managerial counterparts

Administrative Issues Mobility paths and mobility policies must be established as part of
the planning process, and so, too, must administrative matters. Those administrative
matters include requisitions, coordination, the budget, and the recruitment guide.
Requisitions
A requisition or authorization to ll a position by higher-level management is essential to
the internal recruitment process. Without a formal requisition, it is far too easy for
managers to make promises or cut deals with employees, contrary to organizational
objectives. For example, managers may promote their employees into new job titles that
have not been authorized by top management. In doing so, they may create perceptions
of unfairness among those with similar backgrounds who were not promoted. This
action thus runs contrary to the organizational goal of fair HR systems. Thus, formal
requisitions should always be used in internal recruitment, just as they are in external
recruitment.
Coordination
Internal and external recruitment efforts need to be coordinated and synchronized via
the organizations staffing philosophy (see Chapter 3). If this coordination is not done,
disastrous results can occur. For example, if independent searches are conducted

internally and externally, then two people may be hired for one open vacancy. If only an
external recruitment search is conducted, the morale of existing employees may be
reduced when they feel that they have been passed over for a promotion. If only an
internal recruitment search is conducted, the person hired may not be as qualied as
someone from the external market. Because of these possibilities, internal and external
professionals must work together with the line manager to coordinate efforts before the
search for candidates begins. To coordinate activities, two steps should be taken. First,
internal staffing specialist positions should be designated to ensure that internal
candidates are considered in the recruitment process. External staffing specialists are
called recruiters; internal staffing specialists are often known as placement or
classication professionals, to acknowledge the fact that they are responsible for
placing or classifying existing employees rather than bringing in or recruiting employees
from outside the organization. Second, policies need to be created that specify the
number and types of candidates sought internally and the number and types of
candidates sought externally. For example, at Honeywells Systems and Research
Center in Bloomington, Minnesota, a management team meets regularly as part of the
planning and development process to make these determinations.
Budget
An organizations internal recruitment budgeting process should also closely mirror the
budgeting process that occurs with external recruitment. The cost per hire may,
however, differ between internal and external recruitment. The fact that internal
recruitment targets candidates already working for the organization does not mean that
the cost per hire is necessarily less than external recruitment. Sometimes internal
recruitment can be more costly than external recruitment because some of the methods
involved in internal recruitment can be quite expensive. For example, when internal
candidates are considered for the job but not hired, they need to be counseled on what
to do to further develop their careers to become competitive for the position the next
time it is vacant. When a candidate is rejected with external recruiting, a simple and less
costly rejection letter usually sufces.
Recruitment Guide
As with external recruitment, internal recruitment activities involve the development of a
recruitment guide, a formal document that details the process to be followed to attract
applicants to a vacant job. Included in the plan are details such as the time, money, and
staff activities required to ll the job, as well as the steps to be taken to ll the vacancy.

STRATEGY DEVELOPMENT
After organizational and administrative issues have been covered in the planning phase
of internal recruitment, an organization must develop a strategy to locate viable internal
job applicants. It must consider where to look, how to look, and when to look.
WHERE TO LOOK
Closed Internal Recruitment System
Under a closed internal recruitment system, employees are not made aware of job
vacancies. The only people made aware of promotion or transfer opportunities are
those who oversee placement in the HR department, line managers with vacancies, and
contacted employees.

Open Internal Recruitment System

Under an open internal recruitment system, employees are made aware of job
vacancies. Usually this is accomplished by a job posting and bidding system.

Targeted System of Internal Recruitment

Under a targeted system, both open and closed steps are followed at the same time.
Jobs are posted, and the HR department conducts a search outside the job posting
system. Both systems are used to cast as wide a net as possible. The large applicant
pool is then narrowed down by KSAOs, seniority eligibility, demographics, and
availability of applicants.
Criteria for Choice of System
1. A closed system is the least expensive in terms of search costs. However, it may lead
to high legal costs if minorities and women do not have equal access to jobs. An open
system is more costly; a targeted system costs the most.
2. Many managers want a person to start work immediately when they have a vacancy;
a closed system offers the quickest response.
3. An open system is more likely than a closed system to identify more candidates, and
hidden talent is less likely to be overlooked.
4. Some openings may require a very narrow and specialized KSAO set. A closed
system may be able to identify these people quickly. An open system may be very
cumbersome when only a select few meet the minimum qualifications needed to
perform the job.
5. An open system may motivate migration of labor from jobs that are critical and difficult
to fill. If so, then employees may create vacancies in critical areas, which in turn may
create new recruitment problems.
6. A labor agreement or contract is a legally binding agreement. Whatever system is
specified within must be followed.
7. An open system, where rules and regulations are known, enhances perception of
fairness.
HOW TO LOOK
1. Job Posting
A job posting is very similar to the advertisement used in external recruitment. It spells
out the duties and requirements of the job and shows how applicants can apply. Its
content should be based on the job requirements matrix. A job posting begins when a
job vacancy occurs.

2. Skills Inventory
KSAOs that are used in making advancement decisions are stored in a skills inventory.
The inventory consists of manual files or computer files for each employee.
3. Nominations
Nominations for internal candidates to apply for open positions can be solicited from
potential supervisors and peers. They may be an excellent source of names of internal
candidates, as they have a great deal of familiarity with what is required to be
successful in the position.
4. Employee Referral
Using employees to refer potential hires to the organization is a common method of
looking for candidates in external recruitment. Though it has not been used much in
internal recruitment, more companies are using employees referrals to staff positions
internally.
5. In-House Temporary Pools
In-house temporary pools are not only important to the temporary staffing of
organizations as the temporary need for personnel arises periodically, but they are also
an excellent source of permanent internal employment. From the perspective of the
organization, they are a known commodity and require less orientation to the
organization than would external hires.
WHEN TO LOOK
1. Lead Time Concerns
A major difference between internal and external recruitment is that internal recruitment
not only fills vacancies, but creates them as well. Each time a vacancy is filled with an
internal candidate, a new vacancy is created in the spot vacated by the internal
candidate.
2. Time Sequence Concerns
As previously noted, it is essential that internal and external recruitment activities be
coordinated properly. This proper coordination is especially true with the timing and
sequencing of events that must be laid out carefully for both recruitment and placement
personnel.

COMMUNICATION MESSAGE

TRADITIONAL MESSAGE
REALISTIC MESSAGE

COMMUNICATION MEDIUM

DUTIES
OTHER PERTINENT FACTS
QUALIFICATIONS
SUBSTITUTION OF EDUCATION FOR EXPERIENCE

1.) Skill in analyzing business-related financial statements such as statements of

assets and liabilities, statements of earning for the purpose of determining
repayment risks.
2.) Knowledge of laws and customs governing negotiable instruments, transfer of
title to chattels and reality, contracts and assignment of collateral.
3.) Knowledge of economic-related factors and trends and their impact on business.
4.) Knowledge of business financial structures and management practices.
Applicants will be evaluated on the following criteria;
1.) Experience Documented on application.
2.) Narrative Self-assessment of KSAs listed above
3.) Education (merit promotion procedures only)
4.) Training (within last 5years) (Merit promotion procedures only)
5.) Awards (within last 5years) (Merit promotion procedures only)
6.) Annual Performance appraisal (Merit promotion procedures only)
Application Requirements
1.) Standard form 171-Application for Federal Employment
2.) Narrative response to knowledge, skills and abilities listed above
3.) Copy of last appraisal under and annual performance rating system (only for
consideration under merit promotion procedures)

What is Job analysis?

Job analysis is the process of collecting information about two basic issues:
1. What the Job entails (what the task and functions are performed by the employees.)
Job analysis may reveal the task performed by generating new clients, evaluating ,
maintaining relationship with existing clients .
2. What knowledge, skills, abilities, and other (KSAOs) requirements are needed to
perform the work.
A job analysis might reveal that the KSAOs needed to perform these tasks effectively
include to ability to interact with others, knowledge of financial concepts, oral
communication skills, and four- year college degree.
Why do a job analysis?
The answer is that job analysis is a basic building block for many human resource
management (HRM) activities.
Job analysis is particularly helpful from legal standpoint, because it help to justify the
criteria upon which hiring, promotion, and termination were made. A job analysis would
also be useful in clarifying expectation for both employee and his or her supervisor so
both parties are clear as to what the job involve.
Uses of job analysis:
Recruitment- Job analysis information helps the HR Manager attract better qualified
candidates by identifying who to recruit and how and where to recruit them by
establishing the job requirements that must meet. In addition, job analysis permits
the HR Manager to provide realistic job previews by highlighting irrelevant and or
distorted job information.
Training-Job analysis information is used to design and implement training and
development programs. The job specification defines the knowledge, skills and
abilities required for successful job performance. This allows the HR Manager to
establish training and development objectives, design programs and determine
whether or not a current or potential employee requires training.
Work Design- Once the jobs are understood properly, it is easy to locate weak spots
and undertake remedial steps. We can eliminate unnecessary movements, simplify
certain steps and improve the existing ones through continuous monitoring. In short,
we can redesign jobs to match the mental make-up of employees.
Compensation-The job description is the foundation of job evaluation. It
summarises the nature and requirements of the job and permits its evaluation

relative to other jobs. Once the relative worth of a job has been determined an
equitable level of compensation and benefits can be assigned.
Industrial relation-Misunderstandings and disagreement among managers,
employees and unions over job content is a major source of grievance and
demarcation disputes. Job analysis information can help avoid such disputes by
providing a clear description of tasks and responsibilities and identifying the formal
qualifications, skills, abilities, knowledge and experience required to successfully
perform the work.
Health and safety- Job analysis information helps create a healthy and safe
working environment. Jobs with hazardous conditions methods or procedures can
be identified and redesigned to eliminate or reduce exposure to health and safety
hazards.
Counselling- Managers can properly counsel employees about their careers when
they understand the different jobs in the organization. Likewise, employees can
better appreciate their career options when they understand the specific needs of
various other jobs. Job analysis can point out areas that an employee might need to
develop to further a career.
HR planning- HR or personnel planning involves getting the right number of
qualified people into the right job at the right time. Job analysis information is
essential for this if the number and types of employees to be recruited or exited from
the organization are to be accurately determined.
1. What type of information will be collected ?
2. How will the information be collected ?
3. In what form will the information be collected?

Sample job analysis questionnaire

Quantitative job analysis questionnaires

Position analysis Questionnaire Is a standardized job analysis questionnaire
that may be used for nearly any job. The PAQ consists 194 items concern work
behaviors and use of equipment and tools .
The Position Analysis Questionnaire (PAQ) is a structured job analysis
questionnaire that measures job characteristics and relates them to human
characteristic
Legal Concepts

Restricted Selection Procedures/Question

There are laws that restrict or ban a variety of selection procedures and questions;
most pre-employment questions and inquiries regarding age, sex, race, national
origin, religion, disabilities and marital status.

Employee Polygraph Protection Act of 1988

Prohibits most private sector organizations from having you take a polygraph test as
a condition of employment

Negligent Hiring

A finding that an employer is responsible for using poor selection procedures after
an employee inflicts harm on the customer or other third party
Practicality

Face Validity

Refers to perception held by various affected parties as to the job relatedness of the
selection procedure.
Typical Selection Steps
The common steps are as follows:
1. Review application blanks and/or resumes.
2. Select best applicants for interview
3. Interview
4. Administer tests
5. Conduct reference and background checks
6. Perform drug test
The Application Blank
A form completed by job candidates to provide an employer with basic information about
their knowledge, skills, education, or other job-related information
Weighted Application Blank
A method for quantitatively combining information from application blank items by
assigning weights that reflect each items value in predicting job success

Sample Application for Employment:

Biographical Information Blank

A pre-selection questionnaire that asks applicants to provide job-related information on
their personal background and life experiences

Sample BIB Items:

The Interview
1. Traditional Interview
The most common type of interview, which allows the interviewer a great deal of
discretion in terms of which questions are asked and in what order
2. Structured Interview
Uses a predetermined set of questions that are clearly job related, such as the
behavior description interview and situational interview
Behavioral Description Interview
used by employers to evaluate a candidates experiences and behaviors in order
to determine their potential for success.
Situational Interview
present applicants with a hypothetical situation relevant to the position and ask
how they would respond.
3. Stress Interview
An interview technique that is an attempt by the interviewer to see how
candidates fares under duress
4. Panel Interview

A group of interviewers interviewing a candidate at the same time. This type of

interview is used to reduce personal biases any individual interviewer may have
Legal Consideration
In terms of court cases concerning the interview, most have involved organizations that
used discriminatory question.
Suggestions for How Organizations Can Avoid Legal Problems with Interviews

Base interview questions and ratings on job analysis

Use interviewers representing diversity in terms of race, sex national origin, and
age.
Train interviewer regarding appropriate and inappropriate questions.
Use structured interviews.
Require interviewers to take notes and to document in writing why they made
their hiring decisions.
Monitor interview decision for adverse impact.

Paper and Pencil Test

Written aptitude test given to a job applicant. The two basic categories: Personality
measures and cognitive ability measures.
Personality Test
A test given to an applicant that will supposedly predict the type of personality will affect
job performances.
Honesty Test or an integrity test is a personality test which assesses a job applicant's
personality traits like honesty, trustworthiness, and dependability. Lack of honesty or
integrity can act against the companies in case of productivity.
Overt integrity tests (also referred to as clear-purpose tests) are designed to directly
measure attitudes relating to dishonest behaviour. Personality-based test tend to be
somewhat less obvious as to what they are assessing, and focus on personality traits
associated with dishonesty.
Typical Personality Test Items

I like to win in any activity I try.

I have many friends.
I sometimes get upset when Im criticized.
I prefer to work in a team than to work alone.

Its more important to me to do a thorough job one thing than to complete many
things.

Cognitive ability Test

Intelligence test given to applicants.
Meta-analysis
Developed by frank Schmidt and john Hunter, this is a statistical procedure for
summarizing past research and has indicated that cognitive ability tests have adequate
validity across virtually all jobs.
Race norming
A method used to eliminate adverse impact by separating norms for different racial and
gender groups.
Typical Cognitive Ability Test
1. Look at the row of numbers below. What number should come next?
8

2. Choose the verb that correctly completes the sentence: Have you ________ the
painting yet?
A) Finish

B) Finishes C) Finishing D) Finished

Typically Non-verbal Cognitive Ability Test

Work Samples
Applicants perform observable, job-related behaviours as predictors of criterion
performance.
Assessment center
An extended work sample. A typical assessment center consists of several different
exercises, measuring various job related abilities.

Common Dimensions Evaluated in Assessment Centers

Oral Communication
Written Communication
Sales Ability
Analysis and judgment
Planning
Delegating
Initiative
Conflict management
Organizational Sensitivity
Tolerance for stress

Background Check
It is the process of looking up and compiling criminal records, commercial records, and
financial records of an individual or an organization.
Reference check
It is when an employer contacts a job applicant's previous employers, schools, colleges,
and other sources to learn more about his or her employment history, educational
background, and qualifications for a job.
Defamation
The action of damaging the good reputation of someone; slander or libel.
In order to win a defamation case, the past employee would have to show the following:
1. The statement was made to another party
2. The statement is false. Generally the defendant has the burden of proving the
statement was true.
3. The employees reputation was harmed.
Drug Test
It is a technical analysis of a biological specimen, for example urine, hair, blood, breath,
sweat, or oral fluid/salivato determine the presence or absence of specified parent
drugs or their metabolites.

Drug Screening Procedures

1. How long will presence of drug traces ( or, as they are usually called metabolites)
stay in your urine?
2. What is the likelihood of a false positive? A false positive occurs when you are
mistakenly identified as a drug user even though you do not use drugs.
3. About what percentage of job applicants are identified as drug users?
Validity of Drug Testing
An invalid drug test is the outcome of a drug test for a urine sample that contains an
endogenous substance at abnormal concentrations, has abnormal physical
characteristics, contains an unknown interfering substance, or an unknown contaminant
that prevents the laboratory from obtaining a suitable valid result on the test.
Legal Consideration of Drug Testing
You can and should test applicants and current employees for drug use in order to
ensure a safe, productive workforce and avoid unnecessary costs associated with
employee drug use. In developing, implementing and maintaining an effective drug
testing policy, you should periodically check developments in state law to stay current in
practices and procedures. A clearly worded and consistently administered policy in
compliance with state and other applicable laws provides an employer with a way to
deal effectively with employee drug use issues that often arise in the workplace.
Miscellaneous Selection Devices
In addition to the methods described above, there are several others, including medical
examinations and physical strength and agility tests. Two particularly interesting
evaluations psychological assessments and graphology described briefly here.
Psychological assessment
It is a process of testing that uses a combination of techniques to help arrive at some
hypotheses about a person and their behaviour, personality and capabilities.
Psychological assessment is also referred to as psychological testing, or performing
a psychological battery on a person.
Graphology
The study of handwriting, for example, as used to infer a person's character.

Polytechnic

University of the
Philippines
Quezon City Campus

Written Report in Recruitment and Selection

Group 5

Submitted by:
Antonio C. Arpon Jr.
Maricris C. Barrun
Jane Paula Torres
Danica D. Uy
Rose Carla S. Sta. Cruz
Jerickson L. Tulay

HRDM 2-1