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Organisations show an increasing awareness, in this current economic climate, of the costs of different HR processes. Discuss how organisations can attempt to balance the requirements of cost constraints with the need to develop effective, valid and relia

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Introduction

Question One Organisations show an increasing awareness, in this current economic climate, of the costs of different HR processes. Discuss how organisations can attempt to balance the requirements of cost constraints with the need to develop effective, valid and reliable selection processes. "Selection processes are when an organisation chooses an applicant for a post from a pool of applicants"i. During this current economic climate employers are trying to reduce operating costs, the review of selection processes, has been seen by many to be one way of reducing cost, however when recruiting, employers need to ensure their selection processes select the most appropriate person. CIPD (2009) reported that the average cost of recruitment and selection of an employee is �7,750 (including induction, training, time and resources)ii Kline (1993) stated 'reliability' and 'validity' are key for selection methods to be technically sound as a measure of both immediate suitability of a candidate and also of prediction of his/her future performanceiii. Reliability can be defined as "the consistency of your measurement" e.g. if a candidate was given the same test paper twice, they should achieve a similar score. Validity is defined as "the strength/effectiveness of a tool and the conclusion of what it measures" e.g. ...read more.

Middle

Pilbeam&Carbridge (2002) state these types of interviews show 0.6 predictive validityvii. Harel et al (2003) reported that interviews that are structured and job related increase fairness and standardisation; this improves the validity and reliability, unstructured interviews are more social and personality based. I agree with this statement because everyone should be treated fairly and also for the procedure to remain consistent for all. Gareth Roberts defined psychometric testing as "a mental measurement that measures candidates ability or personality"viii. Ability measures vocabulary and numeracy, and looks at the aptitude required for a particular role, whereas personality tests look at personal characteristics, values and beliefs. It could be argued that personality tests do not accurately measure performance in all types of jobs, so ability testing is more accurate when assessing/predicting a candidate's ability to perform a specific job, however the merits of the different tests will vary depending on the job type. Psychometric testing only has a validity of 0.4, however it was reported there is medium popularity within organisationsix. Doving (2005) reported 51% of employers in Europe are conducting psychometric test in selection. The problem is the requirement to have competent experts to implement the system effectively and professionally. ...read more.

Conclusion

Justification for cost is important, therefore there has to be a balance between the cost of associated processes and the effectiveness of the process. Employers are looking at online profiles e.g. facebook etc. People Management (2010) reported that 4 in 10 HR managers did not hire a candidate as a result of negative online profilingxv. This could potentially indicate to employers what people are like out of work, in their social environment and if they will prove suitable e.g. work ethics, beliefs and values of the prospect employer. Overall selection processes are important within any organisation. The ultimate objective is to select the best candidate e.g. the person with the right skills, qualifications and competencies, who will be able to apply these to the job, whilst at the same time ensure that the cost of the selection is kept to an absolute minimum. The cost of selection will vary for different types and levels of jobs e.g. Director of HR will typically cost more than a HR assistant, also the process will need to differ in order to ensure appropriate selection. In this current economic climate I believe that the need to adopt the correct selection process is possibly more important than ever before. ...read more.

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