Final answer:
The employee selection process is crucial for a company to gain a sustained competitive advantage by hiring candidates with both the necessary skills and a good fit for the company culture. Diverse teams and a merit-based selection more tightly aligned to productivity are likely to contribute more to innovation and business performance.
Step-by-step explanation:
The Interrelation of Employee Selection and Competitive Advantage
The relationship between a company’s employee selection process and its capacity to secure a sustained competitive advantage is significant. The process of personnel selection is about more than just filling positions; it involves selecting candidates who not only possess the necessary skills but also align well with the company's culture and values. There exists a strong consensus that a diverse workforce, paired with the right skill set, leads to innovative solutions and business growth. However, the challenge often lies in finding the balance between a good fit for the company culture and the benefits of diverse perspectives.
Training is a key aspect that follows the selection process. Once a candidate is selected, companies may engage in various kinds of job training to enhance the individual's talents and ensure they are fully equipped to handle their role, thereby increasing the effectiveness of the workforce and contributing to the company's competitive edge. Moreover, aspects like performance assessment can play a vital role in identifying areas for improvement and rewarding productivity, which in turn, can foster a motivated and efficient workforce.
The decision to hire based strictly on the merits of productivity without regard to race, gender, or background can enhance competitiveness as it allows for the accumulation of talent that is high-performing. Additionally, by looking at educational credentials, awards, and references, employers attempt to mitigate asymmetric information and ensure they recruit individuals who are likely to be successful in their roles. However, this approach should be balanced with efforts to ensure all individuals have the opportunity to compete on their own merit, without prejudice or preferential treatment.