Final answer:
Screening enables management to gather detailed information about a job applicant's experiences and whether they'd fit well within the company, using education and references to pre-screen for quality.
Step-by-step explanation:
Screening is the process that allows management to obtain detailed information about an applicant, such as their experience, skills, attitudes, and whether they would fit in the company. In the context of hiring, similar to how a buyer screens used cars, employers want to avoid hiring a 'lemon' or a poor quality employee. To combat the issue of asymmetric information in the labor market, employers collect data on candidates' academic and work history.
However, since some abilities and attributes are not easily demonstrated without observing the individual in the workplace, employers may utilize educational achievements, such as a degree from a trade school or college, as a method to pre-screen candidates.
High grades, awards, and other accolades are often seen as indicators of hard work and ability. Furthermore, employers seek references to get a better understanding of an applicant's energy level and work ethic, which also give insight into key soft skills like motivation and the ability to cooperate with colleagues.