A Contingency Perspective of The Importance of

PJ Fit and PO Fit in Employee Selection

 OBJECTIVE

Propose a contingency perspective that describes the

relative importance of person-job (PJ) Fit and person-
organization (PO) Fit as selection for hiring various
types of employees.
 INTRODUCTION
 PJ Fit: The compatibility between a person’s characteristics
and those of the job or tasks performed at work
 PO Fit: The compatibility between people and the entire
organizations.

PJ Fit PO Fit
(Person- (Person-
Job) Organization)

PE Fit
(Person-
Environment)
 TRADITIONALLY

 Employee selection has focused on PJ Fit or the match

between Knowledge, Skills and Abilities (KSAs) and job
requirements as the major selection criteria.
 Few researchers whom argue the above statement
 Bowen (1991) :
Argue that organizations with self-motivated and committed
employees tend to select employees
based on PO Fit as well as PJ Fit.

 Werbel and Gilliland (1999):

Propose that employee selection should include
PO Fit, PG Fit as well as PJ Fit.
 STUDY ON PJ FIT CORRELATIONS BY KRISTOF-
BROWN ET AL (2005).

Job Satisfaction
(0.56)
STRONG
RELATIONSHIP
Organizational
Commitment
(0.47)
PJ Fit
Intent to Quit
(-0.46)
MODERATE
RELATIONSHIP
Overall
Performance
(0.20)
 STUDY ON PO FIT CORRELATIONS BY KRISTOF-
BROWN ET AL (2005).

Job Satisfaction
(0.44)
STRONG
RELATIONSHIP
Organizational
Commitment
(0.51)
PO Fit
Intent to Quit
(-0.35)
MODERATE
RELATIONSHIP
Overall
Performance
(0.27)
 PSYCHOLOGICAL CONTRACTS
 Rousseau (1995),
Defines as an individual belief in mutual obligations
between a person and another party such an employer.

Transactional
Psychological
Contracts

Psychological
Contracts

Relational
Psychological
Contracts
 PSYCHOLOGICAL CONTRACTS

 P1a: When organizations hire employees with whom

transactional psychological contracts are to be formed,
PJ Fit will be more important than PO Fit.

 P1b: When organizations hire employees with whom

relational psychological contracts are to be formed, PO
Fit will be more important than PJ Fit.
 HUMAN CAPITAL THEORY
Firm-Specific
Human
Capital Human

General
Human
Capital
Capital

Firm Specific Human Capital:

Is associated with KSAs , can be applied at a specific firm only &
not easily transferred to outside the firm

General Human Capital:

Is associated with KSAs, that are applicable to a broad range of
jobs across organizations.
 HUMAN CAPITAL THEORY

 P2a: When organizations hire employees for firm-

specific human capital, the PO Fit will be more
important than PJ Fit.

 P2b: When organizations hire employees for general

human capital, the PJ Fit will be more important than PO
Fit
 COSMOPOLITAN-LOCAL PERSPECTIVE

 Gouldner (1957):
distinguished “cosmopolitans” who represent the interest
of the occupation and have little loyalty towards the
organization, and “locals” who are expected to represent
the often conflicting interests of the organization.
 COSMOPOLITAN-LOCAL
PERSPECTIVE

 P3a: When organizations hire employees who are

categorized as cosmopolitans, PJ Fit will be more
important than PO Fit.

 P3b: When organizations hire employees who are likely

to become locals, PO Fit will be more important than PJ
Fit.
 FINDINGS
PJ Fit is important than PO Fit

Transactional
To forms
Psychological Contracts

WHEN General Human Capital

To obtain
ORGANIZATION
HIRE EMPLOYEES

Cosmopolitans
Who are
 FINDINGS
PO Fit is important than PJ Fit

To forms
Relational Psychological
Contracts

WHEN Firm-Specific Human

To obtain
ORGANIZATION Capital
HIRE EMPLOYEES

Likely to become locals

Who are
 ORGANIZATION PRACTICE
 CIMB Human Resource Department used a several
main types of tests. They conduct background
investigation and other selection procedures regardless
of the PJ fit and PO fit, to better job performance and job
satisfaction.

 The best way to create the most value is by enabling the

people in the organization to involves effectively
placing, motivating and supporting them and ultimately,
unleashing their true potential.
 ORGANIZATION PRACTICE
 Literature Review

 Person – Organization Fit

 PO Fit is broadly defined as the compatibility between people and

organizations. In employee selection research, PO Fit can be
conceptualized as the match between an applicant and broader
organizational attributes.

 Researchers and practitioners content that PO Fit is the key to

maintaining the flexible and committed workforce that is
necessary in a competitive business environment and a tight labor
market.
 ORGANIZATION PRACTICE
 Literature Review

 Person – Job Fit

 PJ Fit refers to the match between the abilities of a person

and the demands of a job or the desires of a person and the
attributes of a job.
 
 The concept of PJ Fit is the traditional foundation for
employee selection. The primary concern in employee
selection has been with finding those applicants who have
the knowledge, skills and abilities (KSAs) to do the job.
 ORGANIZATION PRACTICE
 UM Practice

 There are 2 types in selection process in UM. That

is:

 (1) Aptitude Test – Leadership - (PJ Fit)

 
 (2) English Test – Organization & Global - (PO Fit)
 ORGANIZATION PRACTICE
 Selection employees in UM is differ by the position.

(1) Officer – Aptitude Test & English Test

(2) Clerk – Computer Test

(3) Security Guards – Physical Test

(4) Driver – Test Drive

 ORGANIZATION PRACTICE
 Person – Environment Fit

 Why UM Make English Test?

 Communication is very important not only for smooth

running of a business enterprise but it is also equally, if not
more, important for the success and growth of individual
executives and professionals.
 ORGANIZATION PRACTICE

 In the corporate world, English is used for international

communication, top management meetings and high level
negotiations. English is the preferred language for internal
and external communication inter and intra companies
worldwide.

 Only for support staff.

 CONCLUSION
 Organizational should be aware of the trade-off between
PJ fit and PO fit in the selection process.

 Organizational must carefully examine what type of

employees they will hire in order to determine the
relative weights of PJ fit and PO fit as selection criteria.