Oxford Handbook of Human Resource Management

(Steven Felgate) #1

Another important assumption is about the level of analysis to which this review
applies. Anything in the empirical recruitment literature that explicitly analyzes
recruitment inputs, processes, and outcomes from an individual-level perspective
is omitted from this review. In some cases, this scope delimitation has resulted in
the exclusion of seminal studies in the recruitment literature. For example, Bou-
dreau and Rynes ( 1985 ) made a landmark contribution in their development of
recruitment utility. They prescriptively modeled the extent to which recruitment
might make positiveWnancial contributions to aWrm’s performance. Utility models
represent a mathematically complex application of decision theory to assess the
economic impact of recruitment activities and practices on organizations (Bou-
dreau 1991 ). Recruitment utility models can deepen organizations’ understanding
of why a particular recruitment practice may haveWrm-speciWc net beneWts rather
than net costs. Through these utility calculations, it can be shown, for example,
that organizations should not always aim to attract applicants with outstanding
credentials or aim to maximize applicant pool size (Breaugh 1992 : 12 – 13 ). However,
utility analysis has a number of drawbacks, including problems with its computa-
tional and measurement complexities (see, e.g., Carlson et al. 2002 ) and research
showing that practitioners are incredulous towards the utility estimates used
(Latham and Whyte 1994 ). Although utility analysis remains one path toward the
systematic, analytically precise evaluation of the general pay-oVs from diVerent
recruitment strategies and practices, a more systemic answer to the question ofwhy
and under what conditionsrecruitment and recruitment strategy can enhance
organizational success has been attempted through the resource-based view of
theWrm (RBV).


14.2 Key Insights from Landmark


Studies
.........................................................................................................................................................................................





    1. 1 Why and How Does Recruitment Matter?




The Resource-Based View of the Firm


In the 1990 s, the RBV, as a mathematically less complex framework, supplanted
utility analysis in the evaluation of possible organization-level beneWts of recruit-
ment. Taylor and Collins ( 2000 : 317 – 21 ) argue that recruitment satisWes Barney and
Wright’s ( 1998 )Wve RBV criteria, which might oVer a competitive advantage. First,
recruitment might addvalueby enhancing labor cost eYciencies and/or spilling
over to customer perceptions of theWrm’s products or services. Second, recruit-
ment strategy might identify and tap talent that israrein the labor market. Third,


recruitment strategy 275
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