The Assessment Center as Instrument for Staff Selection. Components and Accomplishments

Table of content

I. Outline

II. List of abbreviations

III. List of figures and tables

1. Introduction
1.1. Research problem
1.2. Research method
1.3. Course of investigation

2. Staff selection
2.1. Definition
2.2. Requirements to staff selection procedures
2.3. Conventional instruments for staff selection
2.3.1. Analysis of application documents
2.3.2. Interviews
2.3.3. Tests
2.3.4. Biographical questionnaires
2.3.5. Graphological report

3. The Assessment Center
3.1. Definition
3.2. Origin
3.3. Areas of application
3.4. Advantages and disadvantages

4. Process of staff selection within the Assessment Center
4.1. Preparation
4.2. Realization
4.3. Result

5. Conclusion
5.1. Summary
5.2. Critical acclaim
5.3. Outlook

IV. Glossary

V. List of references

Abstract

Staff selection is the process to hire individuals. The staff selection has gained relevance in many companies and is an increasingly important issue. Staff can be selected in many different ways and the Assessment Center is one of it. Assessment Centers have their origins in the military field. Due to the achieved success this method has gained wide recognition in the field of Human Resource Management. Assessment Centers are often applied for staff selection in large scale enterprises, but also have other application areas like staff development. The Assessment Center is not a method that can be described in detail and then be applied the same way to all companies. Like many selection instruments, including the Assessment Center, it is changeable and adaptable, depending on the company and their priorities.

Keywords: Human Resource Management, Employment Determination, Personnel, Executives, Employment Decision, Hiring

JEL Classification: J230, M120, M510

II List of abbreviations

Abbildung in dieser Leseprobe nicht enthalten

III List of figures

Figure 1: Areas of application of the AC method

Figure 2: Stages of preparation and implementation of an AC

IV List of tables

Table 1: Assignment of participants - and observation groups to exercises

Table 2: 2-day-AC for trainee selection at a universal bank

1 Introduction

1.1 Research problem

The selection of staff is one of the most important tasks in the Human Resource Management, as the success of a company depends on skilled employees. A company must be careful to choose the right staff for their positions. Considering the flood of applications these days, it is hard to find out who will fulfil the requirements of the company and the target position. Every misdetermination with regard to staff selection can lead to various harms within the company. The Assessment Center (in the following “AC”) provides one possible way to choose the staff for a company. The AC is a systematic procedure that is used to evaluate individual performance and potential. The participants go through different tasks and exercises, which are characteristic for the target position in the company. With the help of the AC, strengths and weaknesses of the applicants can be assessed. The AC is used both as an instrument for staff selection and for staff development. The AC for staff selection predicts, which candidates have the best possible or most of the skills to fill a specific job with the greatest success. This way of staff selection is often used for choosing management personnel and sales staff as they have to provide certain social and soft skills. The suitability for future tasks, such as the entry into leadership positions can be predicted. On the other hand, the goal of AC for staff development is to diagnose abilities and potentials of the staff who is already in the company. This research paper aims to analyse how AC's are realized in context of staff selection. It focuses on the components of AC's and introduces the accomplishment.

1.2 Research method

This paper analyses the AC as a method for selecting staff. Hence, the staff selection and the AC will be introduced in order to form a frame and to take a closer look to the AC as a possible instrument for staff selection. For this purpose the staff selection must be treated as a separate subject for the time being in order to understand the staff selection in general and its meaning. Later on, the AC will be presented as a possible method for staff selection.

1.3 Course of investigation

Based upon the research question that has been postulated in chapter 1.1, a definition and description of staff selection will be given in chapter 2. Furthermore conventional instruments for staff selection such as the analysis of application documents, interviews, tests, biographical questionnaires and graphological reports will be covered. Thereafter, the AC including a definition and description, origin, areas of application, advantages and disadvantages will be addressed in chapter 3. Afterwards, the process of staff selection within the AC including preparation, realization and the result will be approached. In the conclusion (chapter 5) a summary of the findings, a critical acclaim and an outlook will be given.

2 Staff selection

2.1. Definition

Personnel selection can be defined as the selection of people for professions, positions or activities based on the qualification they have and considering the special conditions of the respective selection case (Fecker, 1989, pp. 5-6). The staff selection represents the decision-making process, whose goal it is to select the most qualified applicant for one specific position in a company (Horn, 1996, p. 35). For a long time the Human Resource Management was neglected both in practice and in science (Fecker, 1989, p. 4). The interest was at most indicated in the quantitative factor of workforce than in qualitative factor, which has been disregarded, although the importance was ubiquitous (ibid.). Nevertheless the qualitative factor took on greater significance in the seventies but the group of themes about staff selection was still under-represented in German literature (ibid.). However a couple of years ago a process of rethinking has taken place (Fecker, 1989, p. 5). Many large-scale enterprises even so small-scale enterprises and administrations pay more attention to staff selection than in the past (ibid.). The personnel selection can not be considered in isolation, because it is a matter of operational process, which is linked to all other operational sectors (Schwarb, 1996, p. 29). The staff selection process becomes a more and more difficult task which has to be accomplished (Herbold, 2002, p. 41).

2.2 Requirements to staff selection procedures

Staff selection procedures are used for the extraction of informations about the skills and properties of each candidate with the purpose to assess their occupational aptitude (Fecker, 1989, p. 9). To fulfil these tasks, the selection procedures have to conform with strict quality criteria such as objectivity, reliability and validity which are the main requirements to staff selection procedure (Fecker, 1989, pp. 9-13 ; Different Schwarb, 1996, p. 172-175). Quality criteria are measured in numerical values between 0 and 1, e.g. they indicate how accurately a method detects a certified attribute and whether the same result on repeated measurement will be detected (Achouri, 2007, p. 79). The objectivity means independence of the measured values from the selectors (ibid.). An objective selection occurs when different observers come to the same results for the same candidate (Fecker, 1989, p. 10). Objectivity in the staff selection procedures means the complete absence of subjective influences and judging, it is a worthwhile ideal, which can hardly be fully achieved (ibid.). Reliability means trustworthiness and repeatability of the measurement at a later time with the same result (Achouri, 2007, p. 79). A complete reliable selection procedure makes it possible to measure a very exact value on a rating scale (Fecker, 1989, pp. 10-11). There is a linear relationship between the reliability and objectivity, because the higher the objectivity of a method, the higher its reliability (Fecker, 1989, p. 11). The validity means significance and evidence of successful prognosis of the professional success (Achouri, 2007, p. 79). A selection procedure is valid if that what is supposed to be measured, is actually measured (Fecker, 1989, p. 11). Accordingly, an intelligence test is valid if it actually measures intelligence and not, for example, the ability to concentrate (Achouri, 2007, p. 79). Whereas Fecker (1989, pp. 9-13) and Achouri (2007, pp. 79-80) refer to three major quality criteria. Another author refers to six different quality criteria (Schwarb, 1996, pp.172-175). Although - at least at first glance - there seems to be no reason to contradict, that the results of a selection procedure have to be verified, it was clear, that with some quality criteria certain situation could not be recorded e.g. discrimination and the experience of candidates and the resulting changes in attitudes and decisions (Schwarb, 1996, p. 172). There are six main quality criteria which are distinguished: completeness, transparency, context consideration, process consideration, openness and flexibility and taking place of theory development parallel to the process (Schwarb, 1996, p. 172-175).

2.3 Conventional instruments for staff selection

2.3.1 Analysis of application documents

Application documents are usually the first information the companies receive (Horn, 1996, p. 43). The application documents generally consist of the application letter, CV with a photo and school report, university diploma, and if applicable internship certificates (ibid.). With the analysis of the application documents a preselection is commonly made. Especially with a large number of candidates, it is essential to narrow down the choice, as a personal introduction of each candidate is hardly possible for time and financial reasons (Fecker, 1989, p. 15). The exterior presentation of the application documents can already make a first impression of the style of work of the applicant (Kitzmann, 1988, p. 9). A first selection by a comparison with formal exclusion criteria such as the age, examination grade, language skills, stay abroad, style of speech and grandstanding is usually accomplished by employees of the human resource management without the participation of the speciality department, although a reliable and valid prediction of professional success based on the application documents alone is not possible (Horn, 1996, p. 43). Some evaluation errors could influence the interpretation of application documents: It is well established that people can easily remember information which they first received (Primacy-Effect) (ibid.). The first received Informations can also layer and influence the evaluation of the later arriving informations which will be indicated e.g. in an interview (Halo-Effect) (Kitzmann, 1988, p. 14; Horn, 1996, pp. 43-44). Consequently the subsequent selection process (e.g. interviews or tests) serve only the search for arguments to confirm the decision which was already taken from then on (Horn, 1996, p. 44).

2.3.2. Interviews

An interview is defined as a targeted oral communication between one or more interrogators and one or more respondents whereas a collection of information about the behaviour and experience can be picked up (Horn, 1996, p. 47). Interviews are conducted in a qualitative spectrum, that ranges from a completely unstructured, non-direct conversation over semi-structured variants up to one where several interviewers conduct a cross-examination stress interview (Horn, 1996, p. 48). From the company's perspective, it is primarily used to gain a personal impression of the applicant and therefore to obtain more detailed information about character traits, motives, interests, value propositions and specialized knowledge. (Fecker, 1989, p. 17). Another goal of the interviews should also be to determine whether the personality of the candidate fits in the company, whether he could e.g. work well with employees who are already in the company or whether difficulties and differences are likely (Kitzmann, 1988, p. 18). For the candidate the importance of the interview is to get an insight of the to be staffed job and to get to know his possible future superiors personally (Fecker, 1989, p. 17). Interviews differ from other selection procedures mainly by the social interaction of the interview participants in particular the reciprocal influence (Horn, 1996, p. 46). The behaviour of the candidate may not be measured as an independent, neutral size, but rather it is influenced by many variables (e.g. mutual sympathy / antipathy, appearance etc.) and is thus highly situative (Horn, 1996, p. 47). The interview still has great significance for the assessment of qualification (Fecker, 1989, p. 16). That is because Interviews are the most widely used instrument for staff selection, as they are handled flexibly, universally applicable, economically feasible (Horn, 1996, p. 47), easy to learn and it is highly affected by applicants and decision- makers (Achouri, 2007, p. 14). The unstructured interview in German companies is still the most popular staff selection method, although unstructured interviews have the lowest prediction accuracy on future career success (Schermuly et al., 2012, p. 8).

2.3.3. Tests

The use of psychological tests as a selection tool starts from the assumptions that the candidates differ from each other through a series of relatively stable personality traits and that there is a predictable relationship between these characteristics and the professional success (Fecker, 1989, p. 19). The development of a scientific test requires a considerable effort, because it has to go through a number of criteria in order to be meaningful (Kitzmann, 1988, p. 22). It must be calibrated, meaning that the test has already been presented different reference populations to obtain reliable comparative and normative values (ibid.). Moreover the test must also be sufficiently differentiated, which means that several qualified individuals must also actually differ in their test performance (ibid). Furthermore the test must be reliable and valid (ibid.). Psychological tests are particularly often used when a relatively large number of candidates have to be investigated (Fecker, 1989, p. 19). The standardized form of tests allows fast and economical feasibility (ibid).

2.3.4. Biographical questionnaires

Biographical questionnaires are self-descriptions that are similar to the content of traditional structured interviews (Horn, 1996, p. 51). The biographical questionnaire is a standardized instrument for the detection of socio-demographic variables, attitudes, previous experiences, activities and interests (Fecker, 1989, p. 23 & Horn, 1996, p.52). The starting point for this instrument is the assumption that the future behaviour can be predicted through previous behaviours and experiences (Fecker, 1989, p. 23-24). Through the statistical judgment formation biographical questionnaires are attributed to higher job performance forecasts as job interviews (Horn, 1996, p. 52).Especially in the United States, these are widely used in contrast to Germany, where they find little appeal (ibid). The advantage of this instrument is the standardization and the associated high level of objectivity and the easy and economical application (Fecker, 1989, p. 24).

2.3.5. Graphological report

One of the most controversial personnel selection instruments is the graphology (Fecker, 1989, p. 24). The graphological report tries to glean certain personality traits from handwriting to shed light on the future success of a candidate (ibid.). A graphological report is relatively simple and easy to obtain without an additional effort of the applicant (Kitzmann, 1988, p. 25). The proliferation of graphological reports is reflected in the large number of vacancies in which a handwritten CV is desired (ibid). What is concealed in these vacancies is the fact, that such a CV is sometimes passed to a graphologist without the knowledge of the candidate (ibid.). Interestingly, graphology as a tool of staff selection is very common in continental European countries, especially in France, while they are hardly used in the Anglo-Saxon countries (Fecker, 1989, p. 24). The quality of the report is very much dependent on the quality of the appraiser (ibid). The graphological evaluation of a handwriting is done from various aspects. Initially, it can be assumed that the design of letters can show a pattern of behaviour which explains the personality (Kitzmann, 1988, p. 25). Consequently the quality of the report is very much dependent on the quality of the graphologist (Fecker, 1989, p. 24).

3 Assessment Center

3.1 Definition

The AC is “a technique or process that is used to assess individual performance and potential.” (Povah, 2012, p. 3). The AC has been enforced as a method for assessing future leadership aptitude in many large companies, in some companies, it has even become the exclusive decision support for placement and promotion measures (Wolf et al., 1995, p. 9). A comparative evaluation of several participants is carried out by several observers with the aim to identify potential and / or to promote potential (Nicolai, 1990, p. 58). The determination of the most qualified applicant requires a judgement about the qualification of applicants and a prognosis of their performance (Horn, 1996, p. 36). “Organizations use ACs for a range of purposes which fit into two broad categories: selection and development. Originally ACs were developed to assist organizations in making selection decisions and thus guiding decisions around which individual best fits a particular role. A couple of decades later, the AC methodology was adapted for use in a development context” (Povah, 2012, pp. 8-9). The question whether the AC method is more suitable for selection or development of staff is much debated among experts (Neubauer, 1981, p. 132). Furthermore ACs are considered to be the most valid aptitude diagnostic tools for the management area in science and practice (Sarges, 1996, p. VII). “From the point of view of practical value, the most important property of a personnel assessment method is predictive validity: the ability to predict future job performance, job related learning … and other criteria.” (Schmidt & Hunter, 2007, p. 53). The rapid spread of the AC method indicates that there is no other selection and evaluation process, which has greater reliability and validity so far (Heitmeyer & Thom, 1988, p. 7).The Assessment Center is different from other staff selection or development methods regarding the use of simulations (Sebald, 2008, p. 74).

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