ABSTRACT
This chapter reviews the hiring process and discusses relevant portions of the human resource management (HRM) and labor economics literatures. It presents a theoretical model for examining the antecedents and effects of a firm's choice of recruitment and selection strategies for hiring. In the labor market, employers and individuals come together to make contracts to exchange compensation for labor services that the employer will use in the production of goods or services. In both the labor economics and HRM literatures, emphasis has been placed on how individuals search for work, but relatively little on the way employers choose their recruitment and selection strategies. The theoretical framework explains both the variation in employers' recruitment and selection strategies and effects of these strategies on worker performance in the firm. Variation in characteristics of both the firm and its environment cause employers to invest differently in both extensive and intensive search strategies as well as administrative activities affecting the hiring process.
