SELECTION OF EMPLOYEES

Kristina Črnjar
Simona Šarotar Žižek

Opatija, 2023
Introduction
Short presentation – Simona
Šarotar Žižek ▪ Full Professor of management,
specialized in Human Resource
Management and Organizational
Behaviour;
▪ Author and/or co-author of several
articles published in various
international and Slovenian journals
and/or presented at scientific and
expert conferences.
▪ Author of several scientific
monographs and chapters in scientific
and expert monograph.
▪ On several occasion I was invited to
present papers at scientific and expert
conferences. Otherwise am I active in
preparing and implementing projects.
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Introduction

Content

THE SELECTION CRITERIA INTERVIEWING

PROCESS DEVELOPMENT AND
RÉSUMÉ REVIEW

TESTING AND
SELECTING

http://app.wistia.com/embed/medias/6137614e00
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Introduction
Selection of employees
– LEARNING OBJECTIVES
Be able to name and discuss the steps in the selection process.

Give examples of types of criteria that can be developed.

Describe the advantages and disadvantages of internal and external

candidates.

Explain the various types of interviews and interview questions.

Discuss interview methods and potential mistakes in interviewing

candidates.

Explain the interview process.

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Selection of employees

The Selection Process at a Glance

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Selection of employees

The Selection Process at a Glance

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Selection of employees

The Selection Process at a Glance

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Selection of employees

Criteria Development and Résumé

Review

Reliability refers to the degree in which other selection

techniques yield similar data over time.

The validity refers to how useful 1. Résumé-scanning software, 2.

the tool is to measure a person’s
attributes for a specific job
opening. A tool may include any
and all of the following:
Reference checks, 3. Cognitive
ability tests, 4. Work samples, 5.
Credit reports, 6. Biographical
information blanks, 7. Weighted
application forms, 8. Personality
tests, 9. Interview questions

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Selection of employees

Internal versus external

candidates
Someone who applies for a position within the
company who is already working for the
company. (Internal)

Someone who works outside the organization.

(External)

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Selection of employees

Advantages and Disadvantages of

Hiring an Internal versus an External
Candidate

EXCERCISE

Mach the advantages and disadvantaged listed

with the internal or external hiring

20 min

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Selection of employees

Internal versus external candidates

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Selection of employees
Interviewing
unstructured interview
questions are changed to match the
specific applicant; for example,
questions about the candidate’s
background in relation to their
résumé might be used.
structured interview
there is a set of standardized
questions based on the job analysis,
not on individual candidates’
résumés.
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Selection of employees

Types of Interviews
• Traditional interview.
• Telephone interview.
• Panel interview.
• Information interview
• Meal interviews.
• Group interview.
• Video interviews.
• Nondirective interview (sometimes called an
unstructured interview).

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Selection of employees

Interview questions

situational
interview

behavior
description
interview
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Selection of employees

Types of Interviews
• Traditional interview.
• Telephone interview.
• Panel interview.
• Information interview
• Meal interviews.
• Group interview.
• Video interviews.
• Nondirective interview (sometimes called an
unstructured interview).

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Selection of employees

Examples of situational interview questions

1. If you saw someone stealing from the company, what would you
do?
2. One of your employees is performing poorly, but you know he
has some personal home issues he is dealing with. How would
you handle complaints from his colleagues about lack of
performance?
3. A coworker has told you she called in sick three days last week
because she actually decided to take a vacation. What would you
do?
4. You are rolling out a new sales plan on Tuesday, which is really
important to ensure success in your organization. When you
present it, the team is lukewarm on the plan. What would you
do?
5. You disagree with your supervisor on her handling of a situation.
What would you do?

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Selection of employees

Examples of behavior description

interview questions:
1. Tell me about a time you had to make a hard
decision. How did you handle this process?
2. Give an example of how you handled an angry
customer.
3. Do you show leadership in your current or past job?
What would be an example of a situation in which you
did this?
4. What accomplishments have given you the most pride
and why?
5. What plans have you made to achieve your career
goals?

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Selection of employees

Examples of inappropriate questions:

National origin

• You also cannot ask questions about citizenship.

• Questions about the first language of the candidate
shouldn’t be asked, either.

Age

• You cannot ask someone how old they are.

Marital status

• You can’t ask direct questions about marital status or

ages of children

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Selection of employees

Examples of inappropriate questions:

Disabilities

• You may not directly ask if the person has disabilities or recent
illnesses. You can ask if the candidate is able to perform the
functions of the job with or without reasonable accommodations.

Criminal record

• While it is fine to perform a criminal record check, asking a

candidate if they have ever been arrested is not appropriate.

Personal questions

• Avoid asking personal questions, such as questions about social

organizations or clubs, unless they relate to the job.

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Selection of employees

Interview Process
Recruit new candidates.

Establish criteria for which candidates will be rated.

Develop interview questions based on the analysis.

Set a timeline for interviewing and decision-making.

Connect schedules with others involved in the interview process.

Interview the candidates and perform any necessary testing.

Once all results are back, meet with the hiring team to discuss each
candidate and make a decision based on the established criteria.

Put together an offer for the candidate

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Selection of employees

Interview Process
Interview the candidates and perform any
necessary testing.

Once all results are back, meet with the hiring

team to discuss each candidate and make a
decision based on the established criteria.

Put together an offer for the candidate.

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Selection of employees

Testing
1. Cognitive ability tests

2. Personality tests

3. Physical ability tests

4. Job knowledge tests

5. Work sample

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Employee recruiting

ACTIVITY – fist part

Below is a list of typical characteristics need for a managerial
position in a retail outlet. Put an „A“ by those attributes associated
with ability and „P“ by those attributes associated with personality.
How important is personality in this role?
▪ Influence – Able to take charge and control a group towards
an objective. Motivates subordinates effectively.
▪ Communication skills – Able to understand and express ideas
accurately and persuasively both orally and in writing.
▪ Organising and planning – Able to think ahead, prioritise and
organise work.
▪ Motivation – Shows energy, drive and enthusiasm.

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Employee recruiting

ACTIVITY – second part

Below is a list of typical characteristics need for a managerial
position in a retail outlet. Put an „A“ by those attributes associated
with ability and „P“ by those attributes associated with personality.
How important is personality in this role?
▪ Creativity – Generates and is receptive to new ideas. Seeks to
innovate.
▪ Empathy – Able to understand the strengths, weaknesses,
views, and feelings of others.
▪ Decision making – Has the confidence to take own decisions
and balance risk with the outcome.
▪ Commercial awareness – Able to analyse numerical problems
and takes an interest and understanding in finacial / profit
implications of actions taken.

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Employee recruiting

How to write a cv?

TEAM WORK:

You have two different CVs in front of you. Please

discuss in groups and answer the following questions:
▪ Which CV is better and why?
▪ Try to be a HR Manager: What do you miss in
each CV and why?

Time: 10 minutes

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Employee planning and recruiting
HOW TO WRITE A MOTIVATION LETTER FOR THE JOB APPLICATION?
Open strong - The first 15-20 words of your resume are critically important
▪ Start with a brief summary of your expertise.
▪ Keep it short.
NOTE: And be sure to avoid clichés. They are meaningless, obvious, and boring
to read.
Get the order right - adding an accomplishments section right after your opener that
makes the bridge between your experience and the job requirements.
Be selective -A resume is a very selective body of content. It’s not meant to be
comprehensive.
NOTE: If you’re applying for a job at a more informal company that emphasizes the
importance of work-life balance, you might include a line about your hobbies and
interests.
Share accomplishments, not responsibilities - 95% of what you talk about should be
framed as accomplishments.
Make it readable - The days of a one-page resume are over. Nowadays, two or three
pages is fine, but that’s the limit.
NOTE: Use the most common fonts. It has to be clear, clean, and elegant and simplicity.

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Selection of employees

Chapter Summary
The selection process refers to the • http://app.wistia.com/em
steps in choosing someone with the bed/medias/f8842ef0d1
right qualifications to fill a current or
future job opening.

Five main steps in the selection

process: criteria; review of the
applications and résumés, interview
the employee, involve administering

When hiring, there is the option of

internal and external candidates.

We have many selection methods.

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TOTAL REWARD OR
COMPENSATION
Kristina Črnjar
Simona Šarotar Žižek

Opatija, 2023
Total reward

Learning objectives
▪ The aims of reward management
▪ The economic theories explaining pay levels
▪ The content of reward strategy
▪ Developing reward strategies
▪ Implementing reward strategy
▪ The philosophy of reward management
▪ Total reward
▪ Guiding principles for reward
▪ Components of an effective reward strategy
▪ Developing line management capability

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Total reward

What is compensation?
▪ Compensation
▪ is the total reward received by an employee in
exchange for services performed for an
organization;
▪ can include both direct pay (salary and wages)
and indirect pay (benefits programs);
▪ is the total of all rewards provided
employees in return for their services.
▪ integrates:
▪ Direct Financial Compensation
▪ Indirect Financial Compensation
▪ Non-financial Compensation
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Total reward

EMPLOYEE’S EMPLOYER’S
PERSPECTIVE PERSPECTIVE
▪ What compensation ▪ What do you
do you seek? compensate?

DIRECT INDIRECT JOB INDIVIDUAL

CHARACTERISTICS

• Money • Benefits • Responsibility • Ability

• Critical function • Training
• Job content • Education

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Total reward

Total Compensation
Employee Satisfaction

Rewards Benefits
• Bonus • Health Plans
• Salary Increases • Retirement Plans
• Promotions • Vacation/ time off
• Equity Offerings • Paid Training
Salary
• Awards • Working Hours
• Pay for regular work
• Recognition
• Pay for overtime work
• New job assignments (if in non-exempt classification)

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Total reward

Theory behind compensation

Equity Theory

• Is based on concept that people derive job satisfaction and motivation

by comparing their efforts and income with those of the other people
in the same or other firms.
• If they find out perceived inequity this affects employee effort.

Expectancy Theory

• People are motivated by intrinsic and extrinsic outcomes they desire.

• It says that individuals have different sets of goals and can be
motivated if they believe that:
• There is a positive correlation between effort and performance;
• Favourable performance will result in a desirable reward;
• The reward will satisfy an important need;
• The desire to satisfy the need is strong enough to make the effort
worthwhile.

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Total reward

Compensation management
Compensation is the applied form of motivation. It is the most difficult
problem of an employee and the touchiest for the employer. The
employer wants to save money so that it may be further invested to
generate profits and employees wants better comforts for self and his
family.

Compensation management is based on objectives. Objectives are not

the rules, but guidelines to promote fair emoluments of work done.

Recruit and retain qualified people

Retain present employees
Ensure equity of compensation
Objective are: Reward smart work
Appreciate creativity and innovation
Make work-force cost-effective

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Total reward

Why compensation?
Attracting Employee
Fairness
Staff Objectives

Retaining Purchasing
Power Recognition
Staff

Motivating
Affordability Composition
Staff

Driving Corporate
Changes Reputation
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Total reward

REWARD MANAGEMENT
Definition

• It is concerned with the strategies, policies and processes required to

ensure that the value of people and the contribution they make to
achieve organizational, departmental and team goals is recognized
and rewarded.

Aims

• Reward people according to what the organization values and wants

to pay for.
• Reward people for the value they create.
• Reward the right things to convey the right message about what is
important in terms of behaviours and outcomes.
• Develop a performance culture.
• Motivate people and obtain their commitment and engagement,…

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Total reward
Reward philosopy
Definition
It is a set of beliefs and guiding
principles that are consistent with
the values of the organization and
help to enact them. These include
beliefs in the need to achieve
fairness, equity, consistency and
transparency in operating the reward
system
Aims
The philosophy of reward
management recognizes that it must
be strategic in the sense that it
addresses longer-term issues relating
to how people should be valued for
what they do and what they achieve.
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Total reward

Reward system

Is connected to Reward It consists of the

strategy, Reward policies, interrelated processes and
It consists of a number of
Total reward, Total practices of financial and
interrelated processes and
remuneration non-financial rewards that
activities which combine to
Base or basic pay, Job are combined into a total
ensure that reward
evaluation, Market rate rewards approach to
management is carried out
analysis, Grade and pay ensure that reward
effectively to the benefit of
structures, Contingent pay, management is carried out
the organization and the
Employee benefits, to the benefit of the
people who work there.
Performance management, organization and the
Non-financial rewards. people who work there.

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Total reward

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Total reward

Total reward

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Total reward

The benefits of a total reward approach are:

Enhancing the
Greater impact employment
relationship

Flexibility to
Talent
meet individual
management
needs

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Total reward

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WHAT IS REWARD?
▪ Reward is the ‘oil’ of the entire Human Resource process shields.
▪ The term ‘reward’ generally covers all financial provisions made to
employees, including cash pay and the wider benefits package
(pensions, paid leave and so on). It can also include wider
provisions for employees, with the term ‘total reward’
encompassing non-pay benefits.
REWARD STRATEGY
▪ Reward management defines what an organization wants
to do about reward in the next few years and how it
intends to do it.
▪ Reward strategy may be a broad-brush affair, simply
indicating the general direction in which it is thought
reward management should go.
▪ It can set out a list of specific intentions dealing with
particular aspects of reward management.
▪ It is oriented to achieve three major objectives:
▪ performance,
▪ competitiveness and
▪ fairness.
Total reward

Types of rewards
Money Promotion to Employee
new position Recognition

Protection
Gift cards Increment
Programs

Property Grades Profit sharing

Overtime and
Performance
Medical Holiday
based
coverage packages
incentives

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Total reward

Basic types of reward

Individual reward

• base pay, incentives, benefits, rewards attendance,

performance, competence

Team reward

• team bonus, rewards connected to group cooperation

Organisation reward

• profit-sharing, shares, gain-sharing

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Total reward

Basic types of reward

Extrinsic rewards

• satisfy basic needs: survival and security

• examples are pay, bonus, promotion, incentives, fringe benefits or
tangible awards; or rewards that are administered by someone else.
• may weaken or strengthen the intrinsic motivation.

Intrinsic rewards

satisfy higher needs: self esteem and development;

are rewards that are part of the job itself and the personal satisfaction of
accomplishing something worthwhile or rewards that are self-
administered;
Four Intrinsic Rewards are:
A Sense of Choice,
A Sense of Competence,
A Sense of Meaningulness,
A Sense of Progress.

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Total reward
Performance, reward and
compensation
Performance, reward and compensation are connected.

The most effective reward and compensation systems align

with objective, outcome-based evaluations of employee
performance.

Each employee's performance measurement should reflect the

organization's business strategy and financial goals.

Compensation should also reflect the employee's performance

level and his contributions to the organization's success.

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Reward and compesation
ACTIVITY FOR STUDENTS.
▪ Now you will take part in a case study.
▪ Therefore you will build teams of 7-10 members.
▪ Each team will study case.
▪ Then teams will present the results.