Recruitment and selection services: Efficiency and competitive reasons in the outsourcing of HR practices

While human resource (HR) activities have traditionally been performed internally, the outsourcing of HR practices is a rapidly increasing phenomenon. The accelerated rate of HR outsourcing also corresponds to a sweeping change in which non-transactional activities, such as recruitment, selection and training, are among the most outsourced HR practices. This article investigates the outsourcing decisions of recruiting and selection (R&S). It develops a predictive model based on efficiency drivers, rooted in transaction cost economy (TCE), and competitive motivations, derived from the resource-based view. The model has been tested in a sample of 276 medium and large enterprises in two specific contexts: the outsourcing of administrative R&S practices (job advertisement and pre-screening) and that of the more strategic R&S practices (colloquia and selection). Findings confirm the relevance of both categories of predictors, but they reveal how efficiency motivations are more important for the decisions to outsource administrative R&S practices while competitive issues matter more for the strategic side of R&S activity. Theoretical and managerial implications are offered on the basis of such evidence.     

Core processes and applicant reactions to the employment interview: an exploratory study in Greece

This research explores the employment interview in Greece with two aims: first, to look at the practice of the employment interview from the interviewer perspective, exploring a number of issues, which have been identified as important for increasing interview's effectiveness and second, to look at the role of interviewers' characteristics on applicant reactions and their behavioral intentions to the actual interview, using two independent samples of interviewers (N = 131) and actual job applicants (N = 122), respectively. The results of the first study were quite supportive regarding the effective use of the employment interview in Greece. In the second study, interviewers' personal characteristics were related to applicants' post-interview attitudes and intentions, although this relationship was fully mediated by the overall perception of the interview held by the job applicant. Theoretical and practical implications of the findings are discussed.     

Modeling the Impact of Advertisement‐Image Congruity on Applicant Attraction

This study examines the effects of the perceived congruity of recruitment advertisements and organizational image on organizational attractiveness. Based on Mandler's schema congruity theory (1982) and on recruitment research, we developed hypotheses and tested them on a sample of 1,091 individuals. The results show that recruitment advertisements that conform to the organization's image show a higher degree of attractiveness to applicants, particularly because these advertisements have higher resulting credibility than advertisements with low congruity. Furthermore, applicants’ level of familiarity with the organization moderates the relationship between congruity and organizational attractiveness, as congruent recruitment advertisements lead to more positive effects for well‐known organizations. This suggests that highly recognizable organizations should use congruent advertisements to unleash the full potential of their recruitment efforts. © 2015 Wiley Periodicals, Inc.     

Critical success factors for mutual collaboration with suppliers in IT outsourcing industry: a case study of a top IT outsourcing company in Korea

ABSTRACT

Nowadays, information technology (IT) outsourcing companies face enduring demands to reduce cost while increasing productivity. This pressure leads many IT outsourcing companies to rely on outsourcing arrangements with IT personnel suppliers. In order to maximise efficiency, outsourcing companies have focused on fostering high-performing suppliers through improved collaboration and mutual relations. However, it is very difficult to advance to a long-term partnership using the existing outsourcing process because of insufficient collaboration between IT outsourcing companies and their suppliers. Based on collaboration perspective of supply chain management (SCM), this study identifies the critical success factors for collaborative strategic partnerships and presents an evaluation framework for assessing and managing suppliers. We have developed an organisational process model for Supplier relationship management (SRM)-based collaboration which includes some of the key constructs from the previous studies and interviews with the IT outsourcing industry people. In this study, we will identify four types of strategic suppliers and suggest approaches for improving collaborative relationship between an IT outsourcing company and its partner companies. In addition, to validate the feasibility of the proposed model, we applied it to a well-known Korean IT outsourcing company ‘A’.     

Strategic Staffing and Small‐Firm Performance

Although staffing can be a critical determinant of whether small businesses succeed or fail, there has been less research in this area than might be expected, given the large numbers of such firms. While there has been some research on specific recruiting and selection practices, there has been little attention to the strategic aspects of staffing. We investigated relationships between strategic approaches to staffing and small‐firm performance using lagged survey data from 139 founders and owners of small firms. Results indicate that recruiting approaches imitating the practices (processes) of larger businesses are positively related to a perceptual measure of firm performance. Selection approaches stressing a growth orientation are also positively related to firm performance. Finally, founders’ and owners’ perceptions of the strategic importance of human resources moderate the relationship of firm performance with imitative recruiting practices as well as with growth‐oriented selection practices. An important contribution of this article is that contextual knowledge facilitates our understanding of the performance implications of staffing practices in small firms. © 2015 Wiley Periodicals, Inc.     

Globalization of HR at function level: four UK-based case studies of the international recruitment and selection process

A series of the changes are being wrought on a range of IHRM functions – recruitment, global staffing, management development and careers, and rewards – by the process of globalization highlighting the difference between globally standardized, optimized or localized HR processes. However, our theoretical understanding of the issues involved is still driven by concepts rooted in global staffing strategies based on the management of small cadres of international managers, such as expatriates. The fragmentation of international employee populations and the changing structure and role of international HR functions has raised three important questions. The first concerns the study of globalization processes at functional level (staffing) and whether this can provide useful insights for the IHRM literature. The second concerns the indicators that best evidence globalization of staffing at the functional level, and whether these might form the basis of useful future research. The third concerns the patterns or strategies within the global HR recruitment activity of organizations across domestic and overseas labour markets and whether these patterns can be explained by existing theory. This paper reports on a study of firm-level developments in international recruitment and selection, drawing upon an analysis of four case studies each conducted in four theoretically derived contexts of centralized or decentralized control and co-ordination, and focus on domestic or overseas markets. It examines the disparities between policy and practice through interview of HR actors at corporate level and in country operations.     

Screening‐oriented recruitment messages: Antecedents and relationships with applicant pool quality

The ability of firms to attract qualified job applicants is a critical component of the human resource management process. However, while a large body of research has examined the relationship between firm recruitment practices and applicant pool attributes, very little research has investigated what factors are associated with organizational decision makers' utilization of specific recruitment tactics. We draw on labor economics, sociological, and agency theoretical perspectives to make predictions regarding the use of screening‐oriented recruitment messages in actual web‐based job advertisements. Results suggest that perceptions of labor supply, recruiting firm reputation, and the use of quality‐based compensation incentives are associated with use of screening‐oriented messages, which in turn are associated with applicant pool quality. These findings hold important theoretical insights into the factors shaping firm recruitment activity and provide practical strategic implications for managing firm recruitment objectives. © 2012 Wiley Periodicals, Inc.     

Recruiting across cultures: A value-based model of recruitment

With globalization intensifying, knowledge of cultural differences becomes increasingly critical. In the area of recruitment, a cross-cultural knowledge base is vital as the demand for international talent poses escalating challenges to effectively attracting desirable applicants. However, we know very little about the effectiveness of recruitment practices across cultures because most studies have been conducted in the U.S. We propose a theoretical framework of recruitment exploring how cultural values influence the effectiveness of recruitment practices in different cultural contexts. We argue that cultural values may moderate relationships between recruitment practices and recruitment outcomes across all phases of the recruitment process and suggest implications for future research directions.     

The effect of applicant race upon personnel selection decisions: A review with recommendations

The research literature addressed in this review concerns unfair racial discrimination in the personnel selection process. Because of methodological limitations and narrow research interests, the extant research fails to provide a clear framework from which to interpret the impact of racial discrimination on personnel selection, nor does it adequately account and control for the factors associated with unfair racial discrimination. Furthermore, this report shows that investigations concerning racial minorities other than blacks are virtually nonexistent. Following reviews of resume, in-basket, and interviewing studies, recommendations for future research are provided.     

A reexamination of the web‐based job demand for PHR and SPHR certifications in the United States

Over the past decade, the exponential growth in Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) certifications awarded by the Human Resource Certification Institute substantiates the need to reexamine the base rate of HR job announcements that require or prefer such certification. Based on a sample of Web‐based job announcements in 2002, Aguinis, Michaelis, and Jones (2005) reported that only 1.4 percent required or preferred PHR/SPHR certification. Using a similar design, the current study found that 15.6 percent of job announcements required or preferred PHR/SPHR certification, which is nearly 11 times the rate found in the Aguinis et al. (2005) study. Results also suggested the demand for PHR/SPHR certification was positively related to experience, educational level, and job title level, with the base rate reaching 25.1 percent for managerial HR roles.     

Offshore outsourcing of professional services: A transaction cost economics perspective

This research utilizes the framework of transaction cost economics (TCE) to develop an understanding of how firms manage the costs and risks of offshore outsourcing of professional services. This research examines the perspectives of eight organizations through interviews with 10 high-ranking supply management executives. The paper first explores the rationale for offshore outsourcing among the organizations studied. Using the tenants of TCE, this paper postulates that fixed costs of establishing the relationship dominate the variable costs of day-to-day transactions, and that organizations will not offshore outsource areas where there is high perceived degree of unmanageable risk. The paper expands on themes provided by TCE and offers some lessons learned, and guidelines for managing and controlling offshore outsourced services relationships.     

Making the cut: occupation-specific factors influencing employers in their recruitment and selection of immigrant professionals in the information technology and accounting occupations in regional Australia

The ongoing underutilisation of immigrant skills has become a topical issue for researchers and policy-makers alike. Within Australia, the majority of studies conducted in this space have adopted either the immigrant or policy-maker perspective, and have utilised human capital theory or labour market segmentation theory to explain the phenomenon. This paper contributes to the existing literature by proposing a novel occupation-specific approach focusing on the employer as a central player in determining labour market outcomes. In this exploratory study, interviews were conducted with 21 employers of accounting and IT employers in the regional city of Wollongong, Australia. The findings suggest that employers of accountants held a greater preference for Australian work experience and qualifications; communication skills beyond English language skills; and emphasised person–organisation fit over person–job fit. Conversely, employers of immigrant IT professionals were more tolerant of overseas-based qualifications and experience; were willing to accept candidates with ‘sub-standard’ communication skills; and were open to personal attribute variations. Immigrant accounting professionals were therefore more likely than their IT counterparts to experience disadvantage when seeking employment opportunities in Australia; a finding that represents important implications for immigrant professionals, policy-makers and employers.     

Selecting people based on person‐organisation fit: Implications for intrateam trust and team performance

Teamwork is widely adopted in organisations. Although much evidence indicates that using person‐organisation (P‐O) fit as a selection criterion benefits individual employees, little is known about how this practice influences team functioning. Drawing on the input‐mediator‐outcome model and the research on value congruence, this study built and tested a model that links P‐O fit in recruitment to work teams' performance. Based on data collected from team members, team leaders, human resources managers, and chief executive officers in 96 firms, we found that P‐O fit in recruitment had a positive relationship with team performance and that intrateam trust mediated the relationship between P‐O fit in recruitment and team performance. Further, this mediated relationship existed only when the organisation had a weak, rather than strong, respect‐for‐people culture. This study contributes to the P‐O fit and team literature and has practical implications for human resources practices and team management.     

Monitoring process quality in off-shore outsourcing: A model and findings from multi-country survey

We investigate how recent advances in information technology and telecommunications have led to real-time monitoring of processes at the site of the provider by a buyer located across the globe. We construct a game-theoretic model of the dynamics of the buyer–supplier interaction in the presence of moral hazard and incomplete contracting. We derive the Minimum Quality Threshold (MQT) below which the provider's output will certainly be inspected. Our findings show that the buyer can pick a level of monitoring and thereby force the provider to exceed the quality level of the MQT in output quality and avoid costly and wasteful inspection. Finally, our model explains why the production of processes that are complex and more prone to errors are actually monitored less by the buyers. We furnish the results of a comprehensive, multi-year, multi-country survey of the efficacy of monitoring in off-shore outsourcing projects and demonstrate strong empirical support for the findings of the model.     

Individual job‐choice decisions and the impact of job attributes and recruitment practices: A longitudinal field study

The present research is intended to contribute to the understanding of how job‐choice decisions are made and the role of effective and ineffective recruiting practices in that process. The issues are examined by tracking job seekers through the job search and choice process. At multiple points in the process, structured interviews are used to elicit information from the job seekers pertaining to how they are making their decision and what factors play a role. Results provide theoretical and practical insights into the organizational and job attributes important to job choice, as well as how specific recruiting practices may exert a significant influence, positive or negative, on job‐choice decisions. For example, our findings reinforced the importance of providing job seekers the opportunity to meet with multiple (and high‐level) organizational constituents, impressive site‐visit arrangements, and frequent and prompt follow‐up. Also, imposing a deadline (i.e., “exploding offer”) showed little effect on job‐choice decisions. Recommendations for recruitment practice and continued research are provided. © 2003 Wiley Periodicals, Inc.     

Adding ethical consideration to the decision‐making process: A leadership challenge

Stakeholder analysis offers a well‐established framework for understanding organizational context and environment. Stakeholder analysis also offers a lens through which ethical considerations can be consciously evaluated and included in organizational decision making. In this article, the author offers a brief overview of the ethics literature and then examines the decision‐making process to identify how and when opportunities arise to include ethical considerations into the decision‐making process. He concludes by offering suggestions on how leaders might improve their ethical decision‐making by using a more macro and strategic stakeholder lens.     

Extrapolation‐based Bandwidth Selectors: A Review and Comparative Study with Discussion on Bivariate Applications

Cross‐validation is a widely used tool in selecting the smoothing parameter in a non‐parametric procedure. However, it suffers from large sampling variation and tends to overfit the data set. Many attempts have been made to reduce the variance of cross‐validation. This paper focuses on two recent proposals of extrapolation‐based cross‐validation bandwidth selectors: indirect cross‐validation and subsampling‐extrapolation technique. In univariate case, we notice that using a fixed value parameter surrogate for indirect cross‐validation works poorly when the true density is hard to estimate, while the subsampling‐extrapolation technique is more robust to non‐normality. We investigate whether a hybrid bandwidth selector could benefit from the advantages of both approaches and compare the performance of different extrapolation‐based bandwidth selectors through simulation studies, real data analyses and large sample theory. A discussion on their extension to bivariate case is also presented.     

Unionised employee's reactions to the introduction of a goal‐based performance appraisal system1

While performance appraisal research has a rich history, we sought to address a long‐noted void in the human resource management (HRM) literature, namely an investigation of employees' reactions to a newly introduced performance appraisal. Specifically, we examined the reaction of 408 unionised employees to a newly introduced performance appraisal system. Reactions examined included appraisal satisfaction, job satisfaction, appraisal fairness, goal setting and the perceived purpose of the system. Satisfaction with the appraisal system was higher when (a) employees perceived it as being fair, (b) it was used primarily for developmental purposes and (c) it allowed them to participate in goal setting. Of additional importance, perception of a developmental focus in the appraisal partially mediated the relationship between appraisal satisfaction, and each of job satisfaction, appraisal fairness and goal setting.