BUSINESS STUDIES Class XII (ISC)

CHAPTER 4: STAFF SELECTION

MEANING OF SELECTION
Selection is the process of carefully screening the candidates to choose the most suitable persons for the job
vacancies to be filled in. It is called a negative process because unsuitable candidates are eliminated or
rejected in order to identify that suitable candidate. Moreover, test, interviews and other techniques of
selection are more reliable for rejection of unsatisfactory candidates than for identifying the ideal candidates.
Selection is always done after recruitment.
Selection is an important function of personnel management. Errors committed at the time of
selection may prove very costly. If the selection process is faulty, unsuitable candidates are appointed. As a
result, the efficiency of the organization goes down. Such persons shirk work and absent themselves from
work quite frequently. They may ultimately leave their jobs. This leads to waste of time and money spent on
their selection and training. On the other hand, recruitment is a positive process because it involves attracting
a sufficiently large number of candidates so that the most eligible employees can be selected.

Distinction between Recruitment and Selection

Point of Difference Recruitment Selection

1. Meaning Searching prospective employees Choosing the candidates having
and stimulating them to apply for necessary qualifications.
2. Nature jobs. Negative process.
3. Aim Positive process. To eliminate all unsuitable
To create a large pool of candidates.
4. Process candidates. Complex as the candidates are
Simple as candidates are not required to cross several hurdles.
5. Number required to cross many hurdles. Only a limited number of candidates
6. Order No restriction upon the number of are selected.
candidates. It is made only after recruitment.
It is done prior to selection.

SELECTION PROCEDURE:
1. Preliminary Interview: This is essentially to check whether the candidate fulfills the minimum
qualifications.
Preliminary interview is beneficial to both the employer and the candidate. Its saves time and
expense of the employer in processing the applications of unfit candidates. The candidates are also saved
from the trouble of passing through a long procedure and being rejected.
2. Application Blank: Application from contains columns for name, age, address, education, job experience,
etc. of candidates. It provides a detailed and permanent record about the candidate. It reflects the candidate’s
suitability and interest for the job. Tentative inferences can be drawn from it. But reference to caste, religion,
birthplace may be avoided as it is regarded an evidence of discrimination.
 Application form helps to serve several objectives. Firstly, scrutiny of the form helps to weed out
candidates who are lacking in education, experience or some other eligibility traits. Secondly, it helps in
formulating questions to be asked in the interview. Thirdly, data contained in application forms can be stored
for future reference. Application form duly filled in is also called bio data or curriculum vitae.
3. Selection Tests: Tests have become a popular device for screening candidates. These tests are based on
the assumption that human traits and work behavior can be predicted by sampling. Tests are helpful in
measuring a candidate’s suitability for the job and in establishing standards of job performance. However,
tests are not fully reliable and they also involve time and money. Tests are more useful in identifying and
eliminating unsuitable candidates. Therefore, tests should be used only as a supplement rather than an
independent technique of selection.
The main types of employment tests are as follows:
(a) Intelligence tests. These tests are used to measure aperson’s capacity for reasoning and
comprehension in terms of his memory, vocabulary, mental alertness, capacity to grasp and
to put together the elements of an abstract situation.
(b) Aptitude test (A.T.): Such test seeks to measure a candidate’s capacity to learn particular
skills and his potential abilities. Both mechanical aptitude and aptitude for acquiring job
skills can be tested. Aptitude tests help to predict future performance. These are used to
identify persons with special inclination and abilities.
(c) Trade tests. These tests are designed to measure the applicant’s level of knowledge and
skill already achieved in a particular trade or occupation. For example, candidates for the job
of a typist may ask to type a page so as to judge their speed and accuracy.
(d) Interest tests. Such tests are employed to find out the preference of an individual for a
certain type of work.
(e) Personality test. These tests are aimed at finding out emotional balance, maturity,
temperament, etc. of the candidate.
(f) Dexterity tests. Such tests are designed to determine an individual’s capacity to use his
hands and fingers in industrial work.
4. Selection or Final Interview (FI): It involves a face-to-face conversation between the employer and the
candidate. The selectors ask job related and general questions. The objectives of the interview are:
a) To cross-check the information obtained through application blank and test, and
b) To give an accurate picture of the job and the company.
However, interview suffers from several drawbacks. Firstly, it is a time consuming and expensive
device. Secondly, it can test only the personality of the candidate and not his skills for the job. Thirdly, the
interviewers may not be an expert and may fail to extract all the relevant information from the candidate.
Fourthly, the personal judgment or bias of the interviewer may make the result of the interview inaccurate.
Interviews should be conducted in a proper physical environment. The interview room should be
free from noise and interruption. The environment should be quiet and confidential. People generally talk
freely and frankly when there is privacy and comfort. Therefore, candidates should be put at ease.
5. Group Discussion (GD): Group discussion is a useful means of judging the leadership ability and social
traits of candidates. In a group discussion, a problem is given to a group consisting of 8-10 candidates.
Members of the group discuss the problem and interact with one another. The observer guides the discussion.
He records how many times and in what way each member addresses / reacts to other members and puts
forth his views on the problem.
Group discussion is widely used to screen candidates for admission into management schools. It is a
useful device for selecting people when the job requires co-operation of several persons. It can be used for
selecting supervisors and executives who require social or human skills. But he time allowed for interaction
is not adequate enough to make an accurate assessment.
6. Medical or Physical Examination: Candidates who are found suitable after interview are called for a
physical examination. A panel of doctors to ensure that they are healthy and physically fit for the job does a
medical check-up of such candidates.
7. Checking Reference: Generally, every candidate is required to state in the application form the names
and addresses of at least two responsible persons who know him. These persons are contacted in writing or
over telephone to collect information about the background, abilities and character of the candidate.
8. Final Approval: The candidates who are found suitable after the medical check up and background
investigation are formally appointed by issuing appointment letters to them. They are asked to join duty by
the specified date. Generally the candidates are appointed on probation of one or two years.
9. Placement: Selected candidates are put up or posted on appropriate jobs. This is called placement. It is
the process of assigning specific jobs and work places to the selected candidates. Proper placement helps to
improve work efficiency and satisfaction of employees.

PSYCHOLOGICAL TESTS
A psychological test is an objective and standardized measure of a sample of behavior from which inferences
about future behavior and performance of the candidate are drawn. These tests provide a systematic
procedure for sampling human behavior. Tests are also used in vocational guidance and counseling students
seeking admission in educational institutions. Tests can also be employed in decisions concerning placement,
promotion, transfer, counseling and training of employees. The purpose of these tests is to judge the ability
of a candidate in a given job situation. These tests are called psychological tests because they have designed
largely by psychologists. Another advantage of tests is that a large number of persons can be evaluated
through one test and considerable information about a candidate can be collected within a short period of
time. But tests measure only a part of the total candidate. Tests are not infallible or fully reliable.
Aptitude or Potential Ability Tests: These tests measure the latent ability or potential of a candidate to
learn a new job or skill. Peculiarities or defects in a person’s sensory or intellectual capacity can be detected
through these tests. Such test are of the following types:
a) Mental or Intelligence Tests: These tests measure the overall intellectual capacity [intelligence quotient
(I.Q.)] of a person. These reveal whether an individual has the capacity to deal with new problems. These
help to determine a person’s word fluency, memory, inductive reasoning, comprehension, speed of
perception and spatial visualization. Intelligence tests measure the ability to understand instructions and to
make decisions.
b) Mechanical Aptitude Tests: These tests measure a person’s capacity to learn a particular type of
mechanical work. Capacity for spatial visualization, perceptual speed, manual dexterity, visual insights,
specialized knowledge of techniques, problem solving ability, technical vocabulary, etc. are judged in these
tests.
c) Psycho-motor or Skill Tests: These tests measure a person’s ability to perform a specific job. These help
to determine mental dexterity or motor ability, and similar attributes involving muscular movement, control
and co-ordination.
2. Achievements or Proficiency Test. These tests measure what a person can do. These tests measure what
a person can do. These determine the skill or knowledge already acquired through training and on the job
experience. These tests are of two types:
a) Job Knowledge Tests: Also known as trade tests, these are used to judge proficiency in typing, shorthand
and in operating calculating, adding machines, dictating and transcribing machines or simple mechanical
equipment. These can be both oral and written. Such tests are useful in the selection of stenographers,
typists, office workers, mill supervisors, sales persons, public utility employees, etc.
b) Work Sample Tests: In these tests, a candidate is given a piece of work to judge how efficiently he does
it. For example, a typing test provides the material to be typed and notes the time taken and the mistakes
committed.
3. Personality Tests: These are pen and paper tests used to judge the psychological make up a person. These
probe deeply to discover clues to an individual’s value system, emotional reactions and maturity, and his
characteristic mood. These help in assessing a person’s motivation and interests, his ability to adjust himself
to the stress of everyday life, his capacity for interpersonal relations and for projecting an impressive image
of himself. These are expressed in terms of the relative significance of traits such as self-confidence,
ambition, tact, emotional control, optimism, decisiveness, sociability, objectivity, conformity, patience, fear,
distrust, initiative, judgment, dominance, sympathy, integrity etc.
a) Objective Tests: These tests measure neurotic tendencies, self-sufficiency, dominance submission and
self- confidence. These traits are scored objectively.
b) Projective Tests: In these tests a candidate is asked to project his own interpretation on to certain stimuli
like ambiguous pictures, figures etc.
c) Situation Tests: These tests measure a candidate’s reaction when placed in a peculiar situation, his ability
to undergo stress and his demonstration of ingenuity under pressure. These usually relate to a leaderless
group situation, in which some problems are posed to a group and its members are asked to reach some
conclusions without the help of a leader.
4. Interest Tests: These tests are an inventory of a candidate’s likes and dislikes in relation to work. These
are used to discover a person’s areas of interest and to identify the kind of work that will satisfy him. These
are generally used for vocational guidance.

Developing A Test Program

(i) Deciding the Objectives: First of all, the objectives of the testing programme are spelled out. Tests may
be designed for hiring, promoting and counseling people. The type of tests to be used and the test
programme may change according to the use for which tests are required.
(ii) Analyzing Jobs: Jobs are analyzed to identify the characteristics considered necessary for job success.
These are defined in terms of human skills and traits.
(iii) Choosing Tests: Appropriate tests are chosen to measure the identified characteristics. The choice is
usually based on experience, previous research and guesswork.
(iv) Administering the Tests: The chosen tests are applied on the desired group of persons to measure the
predetermined traits.
(v) Establishing Criteria of Job Success: Success Criteria may be laid down in terms of quality and
quantity of output, attendance record, rate of accidents, speed of promotion, professional achievements, etc.
(vi) Analyzing Results: The test scores are carefully analysed in the light of success criteria. After the
analysis, decision concerning the candidate is taken. The candidate is either selected for further processing or
it rejected.

Precautions in Using Tests

1. Validity: Only valid tests should be used. Validity means the degree to which a test measures what it is
designed to measure.
(a) Content Validity: It implies the extent to which the contents of a test are related to the job requirements.
If the sample tasks covered in the test are representative of the probable job assignments, the test is said to
have content validity.
(b) Predictive Validity: It implies the degree to which test scores, determine the future job behavior of a
candidate. It is most important for the purpose of employee selection.
(c) Concurrent Validity: It means the extent to which there is a positive correlation between job performance
and test scores, determine the future job behavior of a candidate it is most important for the purpose of
employee selection.
(d) Construct Validity: It means the extent to which the test measures psychological quality such as
intelligence or introversion that it is supposed to measure.

2. Reliability: Test reliability implies the ability of a test to give consistent results. Test reliability is the
consistency of scores obtained by the same person when re-tested again and again.
Under test-retest method the same test is administered to an individual or group two different time points and
the scores are compared. In alternative form method two similar forms of test are given and the degree to
which the two sets of scores coincide indicates test reliability. Split halves method divides the whole test into
two similar and equal parts and a high association between the scores on the parts is used as an indicator of
reliability.

3. Standardization: A test must be standardized so that test scores become comparable. Tests should in
other words, be administered under standard conditions to a representative sample of person.

4. Objectivity: A test must be constructed in such a way that two or more persons can score the responses in
the same way.

5. Weightage: Each test should be assigned a weightage in the selection process to reflect its importance.

6. Supplement: Tests should be used as supplements rather than on stand-alone basis. Tests are better at
predicting failures than success.

7. Competent Persons: Tests should be designed, administered, interpreted and assessed only by trained and
competent persons.

8. Tailor-made: Each organization is unique in terms of its needs and circumstances.

9. Warm-up: Some warm-up should be provided to candidates before the test begins.

10. Imprecise: It should be kept in mind that tests are not precise measures because they are samples of
behavior.

INTEVIEWS
Interview is a face-to-face interaction between two persons for a particular purpose. It is also employed to
screen candidates for admission into institutes of higher learning. Thus, an interview is a purposeful
exchange of views, the answering of questions and communication between two or more persons.

Objectives and Importance of Interview

In the selection process, interviews serve the following purposes:
1) To crosscheck or verify the information obtained in earlier steps, i.e. application form and tests.
2) To judge the candidate’s qualifications and characteristics so as to decide whether or not to select him.
3) To give the candidate essential facts about the job and the company to enable him to decide intelligence
whether he should or should not accept the employment.
4) To establishment a rapport or mutual understanding between the company and the candidate and to
promote the company’s goodwill.
Interview makes unique contributions to the selection process in several ways. Firstly, it is the only way to
see the candidate in action – his looks, manners and bearing. Interview provides an opportunity to size up the
candidate. Secondly, interview is the only way to judge how the candidate interacts and responds. Thirdly,
interview is one of the best ways to predict the candidate’s job performance.

Limitations: However, personal interview suffers from many limitations. Firstly, the interview relies too
much on the personal judgment of the interviewers that may not always be accurate. Bias often affects the
interview. Secondly, the interview may not be able to elicit the required information from the candidate.
Thirdly, in an interview the personality of a candidate can be judged but not his ability for the job. Fourthly,
interview is a time consuming and expensive device.

Types of Selection Interview:

Interviews may be classified into following categories:
1. Informal Interview: Such an interview may take place anywhere. It is not planned and is used when
the staff is required urgently. A friend or relative of the employer may take a candidate to the house
of the employer or manager who asks a few questions like name, birth place, education and
experience, etc. when a candidate enquires about the vacancies after reading an advertisement, it is
an example of informal interview.
2. Formal Interviews: This type of interview is preplanned and is held in a formal atmosphere. All the
formalities and procedures, e.g. the venue, the time, the panel of interviewers, and the questions to
be asked are decided in advance.
3. Patterned or Structured Interview: Such an interview is fully planned to a high degree of accuracy
and precision. It is based on the assumption that to be most effective every pertinent detail should be
worked out in advance. Therefore, a list of questions is prepared and the questions are asked in a
particular cycle. The interviewer actively participates and the candidate is expected only to answer
the questions. Thus, a standardized pattern is adopted or the structure of the interview is decided in
advance. Such an interview is also known as directed or guided.
4. Non-Directed or Unstructured Interview: In this type of interview, the candidate is allowed to speak
his mind freely. The interviewer carefully and patiently listens, prodding whenever the candidate is
silent. In other words, the format of the interview is unplanned and the interview is not directed by
the questions to be asked.
Non-Directed interview is a more flexible approach and therefore the candidate feels more at ease.
5. Depth Interview: It is a semi-structured approach wherein details concerning one key area are
sought. It is designed to intensively examine the candidate’s proficiency in his area of special
interest. The purpose is to get a true picture of the candidate through deep probing into his mind.
Experts in the concerned area of knowledge ask relevant questions so as to judge the candidate’s
capabilities in the area.

6. Group Interview: In this interview groups rather than individuals are interviewed. Generally a topic
for discussion is given to the group. The candidates in the group are carefully observed as to who
will lead the discussion, how well they will participate in the discussion, how each will make his
presentation and how well they will react to each other’s views.
7. Stress Interview: The purpose of such interview is to find out how a candidate behaves in stressful
situation, i.e., whether he loses his temper, gets confused or frightened or feels frustrated. Therefore,
 the interviewer adopts hostile behavior towards the candidate. He deliberately puts the candidate
under strain, the interviewer asks questions rapidly, criticizes, his answers, interrupts, him
frequently, keeps silent for unduly long periods of time, asks too many questions simultaneously,
makes derogatory remarks, accuses him of lying, and so on. Stress interview is used for jobs wherein
emotional balance or resistance to stress is required.
8. Panel or Board Interview: Such an interview is conducted by a group of interviewers. It seeks to pool
the collective wisdom and judgment of several interviewers. Questions are asked in turn or at
random.
Steps in Interview Process
An effective interview involves the following sequence of steps:
1. Preparation for the Interview: The following arrangement should be made before the interview begins:
(a) Determining the objectives of the interview.
b) Choosing the appropriate type of interview to be used.
c) Acquainting oneself about the candidate.
d) Determining the type of information to be obtained.
e) Selecting the right interviewers.
f) Selecting the candidates to be interviewed by checking and comparing their applications and test scores.
g) Finalizing the interview assessment forms.
2. The Physical Setting: The place of interview should be both private and comfortable. It should be
neat and clean, well-lighted and ventilated. It should be free from noise and interruptions. Adequate
furniture and proper seating arrangements are necessary.
3. Conducting the Interview: The step is the heart of the interview process. The activities involved in it
are as follows:
(a) Establishing rapport with the candidate and gaining his confidence. Exchange of
pleasantries, a smile, offering seat to the candidate, etc. will help to break the ‘ice’.
(b) Getting complete and accurate information for this purpose the interviewer should:
(i) Ask open-end questions.
(ii) Use the language that is clear to the candidate.
(iii) Listen attentively and patiently.
(c) Recording the observations and impressions – The interviewer should write down in brief
his observations and impressions of the candidates on the interview assessment forms.
4. Closing the Interview: The close of the interview is as significant as it’s beginning. It should end
with a happy note without any awkward or embarrassing situation. Before closing the interview, the
candidate should be asked whether he wants to make any comment.
5. Evaluation of Results After the interview is over, the interviewer should evaluate the candidate’s
suitability for the job. The evaluation is based on the observations, impressions and information
collected during the interview. The evaluation may be done either by assigning grades ranging from
A to E or by allocating marks. The interviewer should give explanation for his rating.
Limitations of Interview:
Interview is widely used method of employee selection. But it suffers from several pitfalls, some of which
are given below:
(i) Personal Bias: Interviewers like other people have personal biases. Their likes and dislikes about
hairstyle, dress, fluency of speech etc. affect their judgment.
 (ii) Halo Effect: Under this type of error, a single prominent characteristic of the candidate affects
the judgment of the interviewer on all other traits. For example, an interviewer may conclude
that a poorly groomed candidate is stupid.
(iii) Constant Error: Such error arises because the interview of previous candidate unduly influences
the interviewer in favor of against the candidate. For instance, a qualified candidate may be
underrated just because the previous candidate was very brilliant.
(iv) Leniency: It implies the tendency to assign high scores. It is normally associated with lack of
confidence and interest in rating. This may arise due to exaggerated expectation, lack of contact
with people and generally rigid personality.
(v) Projection: Error of projection arises when an interviewer expects his own knowledge, skills and
values in a candidate. Therefore, he is likely to select candidates who resemble him in terms of
appearance, manners, backgrounds, voice etc.
(vi) Stereotyping: This error arises when the interviewer believes in some association between a
particular type of personality and a particular trait, commercial origin or cultural background.
Guidelines for Effective Interviewing
Interviews can be made more effective by observing the following guidelines:
1. An interview should have a definite time schedule with ample time for its conduct, i.e. it should not
be hurried.
2. A personal approach should be adopted. The interviewer should develop a friendly and cordial
relationship with the candidate. Pleasantly greeting the candidate and showing active interest may
create rapport.
3. Interview should have an element of privacy.
4. The interview should be based on a checklist of what to look for in a candidate.
5. Competent, trained and experienced persons should be chosen as interviewers.
6. Proper method of interview should be employed.
7. A specific set of guidelines should be given to the interviewers.
8. There should be proper coordination between the initial and succeeding interviews.

INSTRUCTIONS TO STUDY THIS CHAPTER:

 Please read your book for detailed information of the above topics.
 The length of the answer depends on the marks in the question paper and may not only be
substituted with what is mentioned in the notes.
 Examples can be used to elaborate your points for this chapter.