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1. Introduction:

Selection methods have played an important role in developing the psychological contract between the new employees and organization. Selection methods are therefore conceived of neutral predictors of the job role performance and suitability of the applicant. There are the two basic selection methods such as face to face interview and group discussion. Face to face interviews and group discussion have been chosen as the primary methods of selection to be discussed in this assignment since among other selection methods it gives the view to the interviewee to judge the overall skills and personality of the employee (Gatewood & Field, 1998). Further it enables the interviewee to review the knowledge and experience of the employee to match with the current job description. Both these methods are extensively used by the human resource personnel within the organization to develop a psychological contract between the new comer employees and organization. Before moving further it is essential to understand the term psychological contract (Guion & Gottier, 2006, p 135-164).

The term psychological contract refers to the perception, beliefs, values and informal obligation of the employee and employer with each other. The contract defines the practicality of the work and dynamics of the relationship that needs to be completes within the company. It is separated from the formal written contract of the employment and most of part only describes the responsibilities and mutual duties of each employee and employer in the generalized way (Hogan et al, 2006, p 469-477).

The duties and employment rights are thoroughly emerged from the psychological contract and interpersonal relationship of the employee with the organization. The behavior of the employee and employer in day to day activities are not determined by the legal contract but derived from the psychological contract. Employee in this way negotiates what he can deliver to the organization and what he expects from the organization in return. This type of bargaining or negotiation is sometime explicit while reviewing the performance appraisal of the employee however taking into behavioral action and reaction through which the boundaries of mutual expectations are drawn (Heneman et al, 2000). Hence the psychological contract defines what the parties should do, should not do and how to do. The performance of the employee is highly appreciable when these expectations are matches with each other and vice a versa. In this way the human resource personnel can maintain the loyalty, commitment and trust from the employees for a long period of time (Wilkinson and Redman, 2009).

The development of an individual’s career path is highly depends on the map followed by both the parties which is reasonably demanding from the employee side. In order to determine the initial expectations of the employer from employee and employee from employer therefore highly based on the method selection. In face to face interview each party communicate its counterpart to each other and both the parties can have the better views on expectations with each other. On the other hand, in group discussion the employer judge the skill sets and way of presenting the argument among the group members through he can judge the overall personality and matched with the expected level of personality of the employee (Hough, 2006, p 571-607).

2. Literature Review:

According to (Jackson et al, 1992, p 1-20), the views on selection methods are not unique and they differ with each other in every sense. The cognitive ability testing is highly accepted in the corporate world as the selection instrument. In contrast (McKenna and Beech, 2008) stated that the personality testing in selection is more important therefore the face to face interview is fairly accepted among the organizations. However the logical view of Hough (2006) stated that the personality of the employee is influenced its performance and the managers who are successful, share the personality traits at high level other than the organization or time. In this way the utility of personality testing is not supported by the validity of personality testing and hence required an effective mode of employee selection. In the employee selection, there is a considerable amount of disagreement for testing the employee personality however it is essential on developing the psychological contract between the employee and organization. The job performance predictors have the low impact on the personality testing of the employee in cognitive ability testing. In this way Schmidt et al, (2002) suggested that the psychological contract development through selection method through validity of employee selection decisions and it diminish the impact of decision making process in employee selection.

According to Schmidt et al, (2002) the general mental ability considered as the solid predictor of job performance and needs to be concentrated in the selection method. Further it is also helpful in developing the psychological contract. The acquisition of job knowledge is the core component of this predictor and demonstrated with the high level of general mental ability. The greater depth and speed in acquiring the job knowledge is developed through psychological contract which further identified at the selection stage of the new comer employees. It is therefore well accepted and well known to have the experienced psychologist who ascertain the personality traits with in the employee and provide better shape in developing the psychological contract with the organization (Hogan et al, 2006, p 469-477). The intellectual capacity of the employees and personality traits are communicated and reflected through the employee behavior which can be identified if the screening and selection methods are effective. It is therefore there likely to be accepted that the valid tool and efficiency in measuring the individuals general mental ability is assessed through the personality traits. These personality traits are tested in the screening stage of selection process. The affective and cognitive states to influence the respective information in personality traits lead the better decision making in the selection process. A through measure of general mental ability and fairly developed tool enable the recruiter to improve the selection process in terms of cost effectiveness, validity and criteria of selection. In this way it could be more fruitful and holds the greater potential. Recently the personal psychology and organizational approach to make up the employee psychology has become instrumental and undertaken as serious form of trait oriented instrument into the selection process. In such a way the reason for such development is the natural fall out in the mutual understanding of employee and employer and increasing level expectations of both the employees and employer with each other. Therefore to enhance the effectiveness of psychological contract it would always prefer to have the counselor or consulting or staffing firm to be involved for providing the training to the new comer employees since these people holds the advanced research skills. There are number of Meta analysis produced to generalize the estimates for predicting the key parameters in job performance of the new comer employees and made it possible to construct the psychological contract between the employees and organization. The general mental ability of an individual is associated with the ability to acquire the job related skills and job knowledge which also nourishes through the work experience however the more the experience the most difficult to construct the psychological contract since the person has already shape up his mind. On the other hand the fresher the person, it would be easy to construct the psychological contract of the employee with the company (Hough, 2006, p 571-607).

3. Critical Analysis:

According to Wilkinson and Redman (2009), the selection methods are neutral predictors of suitability of the candidate and its job performance in the company. Therefore the methods are quintessentially predictors and non impact of job performance. The efficacy of the assessment method is based on the two prime factors such as variation in the behavior of the candidate, which is determined in the selection methods and also predict the future behavior of the applicant on job and second one is that error variance can be isolated from the true variance (McKenna and Beech, 2008). Over the past 50 years, this paradigm has become the rigor and vigor as the neutral predictor of individuals’ job behavior in selection method. It has been identified that the basic personality factors in the predictive behavior cannot be organized however it is more appropriate in subjective approach. Each factor in predictive approach can be broken down into number of traits of an individual such as trust, disagreeableness, and warmth. In contrast the subjective approach is more of the opponent side which broken down the traits into negative factors such as selfishness, hostility and distrust. Predictive approach provided that the selection methods are highly effective to determine the individual behavior by rating his personality traits on various parameters such as assertiveness, talkativeness, silence and passivity (Jackson et al, 1992, p 1-20). The lack of emotion, nervousness, temperament and moodiness are the negative traits which are identified in subjective approach. However Wilkinson and Redman (2009) argued that selection methods which are nonsensical cannot be the predictors. There is variety of ways in which the candidate experience of selection method. There is only one property in selection method to predict the future job performance of the individual and also demising the number of other functions either the potential or actual (Schmidt et al, 2002, p 627-670).

McKenna and Beech (2008) identified five different postulates of various selection methods which includes the varying degree of impact, sub group differences, socialization impact, attitudinal impact and individual differences. All these five postulates are important in developing the psychological contract between the employees and organization. With a positive culture in the organization these are the newer technology which provides the experience and openness for imagination, curiosity, traits and creativity of the employee. Apart from this the five personality factors also played the important role for developing the reliable proficiency of the employee and predicting the rating of the employee job performance and training proficiency. However while comparing the personality factors with the job performance of the employees in terms of intellectual and agreeableness and validity of coefficient scores. For assuring these factors in the selection process, a cognitive testing is the effective tool which also helps the company to develop the psychological contract. According to McKenna and Beech (2008) there is a correlation approach between the selection process and psychological contract. There are the certain instruments which ensure the correlation between the selection process and psychological contract and these include integrity tests, personnel selection tests, and customer service measurements. These facets are the big five personality factors which are matches with the big five personality factors with the validity coefficients in the range of .33 to .50. There is certainly a respectable range which ensures the validity coefficients for the general mental ability assessment and also filed in the face of old prevailing opinion where the personality tests include the low variability and validities in the personal selection. According to (Heneman et al, 2000), the psychological contract is the mind of an employee which needs to be assessed n the selection process.

Cattell (2003) stated that the job performance is correlated with the personality traits and growing the importance of such relationship between the work organizations. The conceptual development is a framework for the study of personality of meta-analytics, which has facilitated the effects of behavioral variable and attitudinal effects on personality traits. The development of better conceptual frameworks for the study of personality and of meta-analytic methodologies has facilitated the examination of the effects of personality traits on attitudinal and behavioral variables of interest to organizations.

The job performance and five personality factors are found as predictor of job performance which occupies the group studies Cattell (2003). For example, the extraversion is a significant factor for the success of sales and managerial position and at the same time it is considered that the selection process must be robust to develop the psychological contract. For such positions in a company, the recruiter must understand the level of metal ability, behavioral approach and personality traits to perform as a sales or a manager in the organization. On the other hand Cattell (2003) argued that the relationship between the five personality factors and job proficiency are linked each other to develop the psychological contract. In 2005, a study was conducted in which it has been found that the job training and job proficiency has positive relationship for developing the psychological contract however it comes though experience and openness & agreeableness behavior of the employees.

Grimsley & Jarrett (2005) identified the relationship between the employee motivation and five factors and their findings showed that the neuroticism is moderately negative with the goal setting and eventually the performance. The study also determined the conscientiousness as a significant predictor of performance motivation among the three perspectives of motivation such as self-efficacy, expectancy and goal setting. Therefore the researches in the field of recruitment and selection process suggested that the personality is deeply related with the career and there are the three indicators to identify such relationship such as occupational status, income and job satisfaction (Hough, 2006, p 571-607).

Personality traits could have a substantial impact on the types of psychological contracts between the employees and organization. The individuals who scored high on personality traits, they can significantly develop the psychological contract with the organization and it is a measure of transactional psychological contracts as argued by Gatewood & Field (1998). On the other hand Grimsley & Jarrett (2005) argued that the individuals with score in conscientiousness are likely formed the relational psychological contract between the employee and organization. Relational contracts are those in which the influence of employee behavior and attitude is reflected on its job performance and related to a higher level of job satisfaction. An effective commitment leaves the low level of conscientiousness and high level of neuroticism. Both these factors are considered as breach of psychological contract.

4. Conclusion:

Based on the literature available and critical review on employee selection process and psychological contract, it can be concluded that the personality traits are the essential factors which needs to be assessed in every type of selection process for developing the psychological contract between the employee and organization. As Grimsley & Jarrett (2005) identified the relationship between the employee motivation and five factors and their findings showed that the neuroticism is moderately negative with the goal setting and eventually the performance, which signifies that the psychological contract is also developed through motivation, training and Big five factors after completing the first phase of selection process. As Schmidt et al, (2002) suggested that the general mental ability considered as the solid predictor of job performance and needs to be concentrated in the selection method. Further it is also helpful in developing the psychological contract. The acquisition of job knowledge is the core component of this predictor and demonstrated with the high level of general mental ability. The intellectual capacity of the employees and personality traits are communicated and reflected through the employee behavior which can be identified if the screening and selection methods are effective. Therefore the recruiter must understand the importance in choosing the selection process and group discussion and face to face interviews are the best method for assessing the personality traits of new comer employees so that an effective psychological contract can be developed.

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