Person-Organisation Fit

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Contents
Person-Organisation Fit2
Forms of P-O fit2
Measures of P-O fit3
Antecedents and outcomes of P-O fit3
Impacts of P-O fit on organisation and individuals4
Performance4
Turnover4
Homogeneity and creativity5
Comparison P-O fit with P-J fit5
Effective management of person-organisation fit6
Importance of Assessing P-O fit in employee selection6
Nurturing P-O fit after the selection process7
Managing P-O fit in organisation with high diversity7
Conclusion10
References12
Bibliography16

Person-Organisation Fit

Person-Organisation fit(P-O fit) is broadly defined as the compatibility between people and organisations (Kristof 1996); a compatibility of values and expectations between employee and employer. It is the congruence of an individual’s beliefs and values with the culture, norms, and values of an organization. Forms of P-O fit

Kristof (1996) further explains - P-O Fit has three main forms. * The first is supplementary fit. It exists when the characteristics of one thing are similar to the same characteristics of something else. * The two other forms of P–O fit are different aspects of complementary fit.

Rather than similarity, complementary P–O fit is about one of the parties (the individual or the organization) making the other whole (Muchinsky and Monahan, 1987). It can take several forms such as needs–supplies or demands–abilities relationships (Kristof, 1996).

A high level of individual complementary P–O fit exists when the organization supplies what the individual needs. A high level of organizational complementary P–O fit exists when an individual has the abilities, attitudes etc. that the organization demands.

Measures of P-O fit

Person’s fit to the organisation can be measured on four different levels * Measuring similarity between characteristics of people and organisations * Measuring the goal congruence with organisational leaders or peers (Vancouver, Millsap & Peters 1994) * Measuring similarity between individual preferences or needs and organisational systems and structures (Cable & Judge 1994) –this reflects the needs-supplies fit perspective. * Measuring similarity between characteristics of an individual personality and organisational climate-sometimes labelled as organisational personality. (Bowen et al 1991) Antecedents and outcomes of P-O fit

According to Schneider’s (1987) ASA (Attractive-Selection-Attrition) framework people and organisations are attracted to each other based on their similarity. Thus both applicant job choice behaviour and organisations’ hiring practices are the major antecedents of P-O fit. Following organisation entry individual and organisational socialisation practices contribute to P-O fit. Socialisation helps establish P-O fit between newcomers and organisation (Chatman 1991; Cable & Parsons, 2001)

Impacts of P-O fit on organisation and individuals
High level of P-O fit is related to a number of positive outcomes. P-O fit is correlated to work attitudes like job satisfaction and organisational commitment, organisational citizenship, self reported team work, creativity, and contextual performance (Boxx, Odom and Dunn, 1991; Chatman 1991). It can also predict intention of quit and turnover. Performance

Holland (1985) stated that individuals will achieve greatest performance when their skills and traits fit those of the organization. In support of this statement, Caldwell & O’Reilly (1990) found that P-O fit is positively related to job performance. Turnover

Research examining the relationship between P-O fit and turnover suggests that employees whose values match those of their organization are less likely to experience feelings of incompetence or anxiety (Chatman, 1991). In contrast, employees who do not have a strong fit will either self-select out or will be released by the organization. For this reason, employees who fit with the organization are likely to...
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