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10 Ways of Managing P-O FIT
10 Ways of Managing P-O FIT
Ten Ways of Managing Person-Organization Fit (P-O Fit) Effectively: A Literature Study
Sutarjo
Lecturer
Business Administration Study
Business Administration and Accounting Faculty
TELKOM Management Institute, Bandung.
Abstract
Purpose: This paper addresses how to manage P-O fit effectively based on a literature study published by the
international researchers.
Reducing employee turnover is a strategy which one factor that has significant relation is the degree of fit
between a person and the organization. When the team activities had a good fit with other organizational
activities then performance was enhanced and resistance to change reduced. The importance of PO fit for
organizations is indicated by significant relationships between PO fit and employees turnover. Persons fit with
the organization (P-O fit) associates a persons personality, goals and values with those of the organization. The
Person-organization fit essentially argues that people are attracted to and selected by organizations that match
their values, and they leave organizations that are not compatible with their personalities. There are ten ways in
managing the person-organization fit effectively to ensure that the organization gain the objectives in term of
organizational objectives such as employee turn over, profitability, sustainability, market leadership as well as
individual and or organizations member objectives such as having meaningful work, appreciation, career, wellbeing, good human relationship at work and quality of life: 1) Process of hire and selection of employees; 2)
Deliver communication/message during hire and selection of employee; 3) Socialization; 4) Intervening culture;
5) Comprehensive training; 6) Measure ideal and actual of organization culture and values; 7)
Career
development management process; 8) Maintain diversity in the organization ; 9) The role of the leader; and 10)
Focus on both the individual and the organization culture.
Keywords: P-O fit, employee turn over, personality, culture and values, intervening culture, degree of fit,
training, KSA (knowledge, skills, ability), career development, diversity, leadership
Introduction
Today, organizations operate in a very competitive global environment. Given the major expense for most
organizations is the cost of labor, any steps that can be taken to reduce these costs will be beneficial. While
downsizing and automation can be effective, these approaches have their own costs. Therefore, increasing
productivity and/or reducing employee turnover are better strategies; with one of the factors that have significant
relation is the degree of fit between a person and the organization (Silversthorne, 2000). Since well-run
corporations of the world have distinctive cultures that somehow responsible for their ability to create, implement,
and maintain their world leadership positions (Schwartz and Davis, 1981 cited in Kilmann, Saxton and Serpa,
1985), finding employees that have good fit with the organization is critical. There has been a shifting away of
employment from full-time and ongoing employment arrangements towards and increased use of contingent
workers and professionals such as lawyers and doctors (Kalleberg, 2000 cited in Sekiguchi, 2007; Barley, 1996,
cited in Kakihara & Srensen, 2004). In such a situation, different weight in measuring person-organization fit is
needed by the organization (Sekiguchi, 2007).
There is an important dimension of fit between the person and the organization at a surface level and in conscious
and unconscious psychological processes. Although it will suit some people more than others, sufficient numbers
of people must find a fit for defence to remain unchallenged. People find an organization in which their
unconscious ideas of authority, leadership and social relationships fit (James, 1999). When the team activities had
a good fit with other organizational activities then performance was enhanced and resistance to change reduced
(Castka, Bamber, Sharp and Belohoubek, 2001). The importance of PO fit for organizations is indicated by
significant relationships between PO fit and turnover (Westerman and Cyr, 2004). Robbins and Judge (2009)
described that organization faces a dynamic and changing environment and requires employees who are able to
readily change tasks and move easily between teams, it is more important that employees personalities fit with
the overall s culture than with the characteristics of any specific job.
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ORGANISATION
Characteristics:
Supplementary fit
Culture/Climate
Values
Goals
Norms
Demands:
Resource
Financial
Physical
Resources
Time
Effort
Commitment
Experience
Opportunities
Task- related
Interpersonal
KSAS
Task
Interpersonal
Supplies:
Characteristics:
Personality
Values
Goals
Attitudes
Demands:
Resources
Time
Effort
Commitment
Experience
Supplies:
KSAS
Task
Interpersonal
Financial
Physical
Psycological
c
Complementary fit
Resources
Opportunities
Task-relkated
I nterpersonal
More specifically, organizations supply financial, physical, and psychological resources as well as the taskrelated, interpersonal, and growth opportunities that are demanded by employees. When these organizational
supplies meet employees demands, needs-supplies fit is achieved (arrow b). Similarly, organizations demand
contributions from their employees in terms of time, effort, commitment, knowledge, skills, and abilities.
Demands-abilities fit is achieved when these employee supplies meet organizational demands (arrow c).
The Person-organization fit essentially argues that people are attracted to and selected by organizations that match
their values, and they leave organizations that are not compatible with their personalities (Robbins and Judge,
2009).
Ten Ways in Managing Person-Organization Fit Effectively
The important question in P-O fit is how workers and organizations select each other, why they continue to
maintain an association, and how person-organization compatibility impacts that association. In times of both
economic hardship and fiscal health, when employers seek to maintain their market share by attracting and
retaining the most qualified personnel, fit is an important consideration (James, 2003) There are ten ways in
managing the person-organization fit effectively to ensure that the organization gain the objectives in term of
organizational objectives such as employee turn over, profitability, sustainability, market leadership as well as
individual and or organizations member objectives such as having meaningful work, appreciation, career, wellbeing, good human relationship at work and quality of life.
1.
To succeed, employers need to hire applicants who perform well on the job and who are unlikely to quit the
organization. In pursuit of optimal hiring goal, the organization needs to examine the effectiveness of actual PO
fit in predicting employee retention (McCulloch and Turban, 2007). During the processes of employee selection
the understanding of P-O fit that occur beyond KSA (knowledge, skill, abilities) matching, and how to offer the
potential candidates for a more flexible and comprehensive approach is very important. Recruiters often rely on
implicit PO fit judgments to distinguish between qualified candidates by determining fit with the organizations
values or congruence on personality with the organization. However, recruiters perceptions of fit are often
inaccurate, and these inaccurate perceptions of fit have been shown to be more predictive of hiring decisions than
the actual fit between an applicant and an organization. Increased accuracy in fit measurement is crucial for
recruiters to obtain the beneficial outcomes of PO fit (Westerman & Cyr, 2004)
Actual PO fit measures provide robust information on turnover risk before the individual is hired. Thus,
organizations can assess the risk of hiring an individual with a known (i.e. research-based) probability of turnover.
It was estimated a savings of $1400 per hire if the employee stayed at least 1 year in the company (McCullough,
2003, cited in McCullough, 2007). Defining values and culture set up as an objective of hiring is important. Once
the values and culture are made clear, the organization then designs screening processes that help the organization
identify who will fit in and screen out those who do not share these values (Kristoff-Brown et al., 2005). It has
also been recommended that organizations use a standardized common metric to assess applicant fit for selection
purposes (Carless, 2005). This does not mean that organization ignore a candidates abilities. Instead
organization should recognize that to really contribute over a long period, a person must feel comfortable in the
organization, the abilities that are important are thus those that help someone grow, change, and develop to meet
changing business challenge (OReilly III and Pfeffer, 2000) .
Assessment centres have potentially particular predictive value for a graduate population. The assessment process
may itself project positive perceptions concerning the professionalism of the organization and how progressive it
is. Furthermore, graduates are likely to use criteria related to characteristics of the organization when deciding to
join it. Graduates are likely, on the point of entry to the organization, to make attributions concerning the
favorability of the organization from career and work perspectives (Mayrhofer et al., 2005) and they will place
particular value on how they are likely to fit in. High potential graduates are likely to be exposed to various
practices that are designed to enhance P-O fit. These processes may change the graduates initial perceptions of
the organization and it is possible that the graduates personal vales may change as a result of exposure to
organizational processes. Various studies (Ryan and Ployhart, 2000; Anderson et al., 2001) highlight the
importance of focusing on the graduates future fit with the organization on the grounds that it is a describable
outcome for organizations. Selection processes in organizations are very much concerned with assessing the
graduates future fit with the (Garavan, 2007, 152)
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Considering the trend of organizations shifting away from full-time and ongoing employment arrangements
towards and increased use of contingent workers and increasing professionals, such as lawyers, doctors and
engineers working in organizations (Kalleberg, 2000 cited in Sekiguchi, 2007, p. 119; Barley, 1996, cited in
Kakihara & Srensen, 2004, p. 181), organizations should use different weights of person-organization fit as
selection criteria for different types of employees, because the effect of each type of fit on various employee and
organizational outcomes may differ according to the type of employees or employment relationships (Sekiguchi,
2007, p. 120). Related to the process of hire and selection, Robbins and Judge (2009) explained that following the
guidelines at the time of hiring should lead to selecting new employees who fit better with the organizations
culture, which should, in turn, result in higher employee satisfaction and reduced turnover.
3. Socialization
No matter how good a job in the organization does in recruiting and selection, new employees are not fully
indoctrinated in the organizations culture. Because they are unfamiliar with the organizations culture, new
employees are potentially likely to disturb the beliefs and customs that are in place. The organization will,
therefore, want to help new employees adapt to its culture. This adaptation process is called socialization
(Robbins and Judge, 2009).
Socialization is the process by which organization bring new employees into the culture. To be able to work in an
organization the employee must internalize its values, norms and way of operating so that they become part of
one's mental life. The employee must be able to sublimate primitive impulses and gain gratification through taskrelated activity, must develop the capacity to create and maintain strong identification with a leader and must have
the capacity to enter and become a member of a group (Czander, 1993 in James,1999)
In terms of culture, socialization involves a transmittal values, assumptions, and attitudes from the older to the
newer employees. Socialization of new members emphasizes the fit between the new employee and the culture.
Socialization attempts to make this fit more comfortable for the employee and the organization. Socialization
process goes on throughout an individuals various career stages, but individuals are more aware of it when they
change jobs or change organizations (Gibson et al., 2003). Socializing employees to enhance PO fit potentially
improves effectiveness because employees who feel they belong to the organization are more satisfied, higher
intention to remain, and are more willing to recommend their s (Tepeci and Bartlett, 2002).
4. Intervening culture
There are courageous managers who believe that they can intervene and make changes in the culture (OReilly,
Chatman and Caldwell, 1991 cited in Gibson, Ivancevich, Donelly and Konopaske, 2003). Managers can get
benefit by taking into account when conceiving and implementing organizational change (Sathe, 1985).
229
5
Hiring and
socialization
of members
who fit in with
the culture
Removal of
members
who deviate
from the culture
Culture
Cultural
communications
Behavior
Justifications
of behavior
Exhibit 2. Five intervention points for managers to consider in making changes in the culture
(Source: V.Sathe (1985)How to Decipher and Change Culture, in R.H. Kilmann, M.J.Saxton, R.Serpa, and
Associates, eds., Gaining Control of Corporate Culture, p.245).
Exhibit 2 shows how intervening culture is conducted. The most effective way of changing peoples beliefs and
values is to change their behavior (intervention 1) (Duck, 2001 cited in Gibson et al., 2003). When members and
their organization are at least receptive to change, it is miraculous how making lists desired norms affects the
members of work group (Kilmann, 2001). However, behavior change does not necessarily produce culture
change because of process of justification. Peoples attitudes are not only affected by their own perceptions but
also by those of others (Van Vianen et al., 2007, p. 192). Managers must get employee to see the inherent worth
in behaving in a new way because people tend to rationalize in term of external justifications, sometimes people
are likely to cooperate just for the incentives, rather than because they fundamentally believe in what they have
been asked to do (intervention2) (Sathe, 1985). Typically, communication (intervention3) is the method used
by managers to motivate the new behaviors. Cultural communications can include announcements, memos,
rituals, stories, dress, and other forms of communications. Another set of interventions are socialization of new
members (intervention 4) and removal of existing members who deviate from the culture (intervention 5). Each
of interventions must be done after careful diagnoses are performed.
Some individuals may not perfectly fit with the organization, but may possess exceptional skills and talents.
Removal of cultural misfits might be necessary, but it should be done only after weighing the cost and benefits of
losing talented performers who deviate from the core cultural value system (Gibson et al, 2003).
5. Comprehensive training
According to Greenberg and Baron (2008), training is a process of systematically teaching employees to acquire
and improve job-related skills and knowledge to make employees job performance getting better.
For skill-driven jobs such as manufacturing and warehouse positions, a systematic and comprehensive training
program will result in greater fit with the organization. It is suggested that providing employees with the
knowledge, skills, and abilities (KSAs) needed to excel on the job through training programs such as instructional
systems design modules (ISD) may increase fit. Instructional systems design training modules specifically to
address the KSAs needed to perform the job. Organizations must choose the best training programs to fit the
strategic goals of the organization that will differentially influence employee perceptions of P-O fit (Autry and
Wheeler, 2005). Training takes many forms. Some training is quite informal in nature, consisting of having
experience employees take new employees under their wings to show them how to do the job in question.
230
Most of the time, however, training, involves highly systematic, formal efforts to teach employees how to do
specific things that are required for job success. There are varieties of training such as classroom training,
apprenticeship programs, cross-cultural training, corporate universities (Hamburger University for McDonald),
executive training programs and e-training (Greenberg and Baron, 2008). Training is used not only to prepare new
employees to meet the challenges of the jobs they will face, but also to upgrade and refine the skills of existing
employees.
Employees apparently are sensitive to the general perceptions of their work group. Social information processing
research has convincingly shown that employees perceptions can be influenced through the communication and
behaviors of their supervisors. Consequently, organizational leaders are not only able to manage employees
experiences but also their fit with the organization (Van Vianen et al., 2007).
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