978-0078029165 Chapter 6 Part 1

Chapter 06 – Personnel Selection

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CHAPTER 6

PERSONNEL SELECTION

Objectives

After reading this chapter, you should be able to

1. Understand the concepts of reliability, validity, and utility.

2. Understand the validity evidence for various selection methods.

3. Discuss approaches to the more effective use for application blanks, reference checks,

4. Discuss the approaches available for drug testing.

5. Describe the validity of different approaches to interviewing.

6. Explain how the various types of candidate information should be integrated and

evaluated.

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1. Perform job analysis and HR planning

2. Develop recruitment strategy/Develop selection procedures

3. Determine validity of selection methods

4. Determine weighting system for data from selection methods

II. Selection Methods: Are They Effective?

A. What Is Reliability?

1. Reliability is the consistency of measurement

2. Reliable methods should have a correlation coefficient of .8 or greater.

3. Goal should be to reduce error in measurement as much as possible and achieve

high reliability

4. Reliable methods (e.g., tests, interviews) tend to be long

5. Reliability is a necessary but insufficient condition for validity

B. What Is Validity?

1. Selection method is considered valid if it predicts some important criterion, close

2. Empirical or criterion-related validity is a statistical relationship between scores on

a predictor (selection method) and a criterion (e.g., job performance).

3. Content validity assesses extent to which selection method represent the actual

requirements of the job

a) Asking a job applicant to perform spreadsheet activities when you are hiring

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4. Validity generalization invokes evidence from past studies of a selection method

using meta-analysis. Results may then be applied to a new and similar job and/or

1. Utility is economic gain (dollar savings or profits) from using a particular selection

method

2. Methods with high validity, low cost and considering the number of applicants and

positions have higher utility

3. The basic formula: estimates the increase in revenue as a function of the use of

the selection method after subtracting the cost of the method

4. High utility requires low selection ratios and thus is also related to the ability of

5. Selection methods with high validity but that have lower costs have more utility

(more cost effective)

1. Weights are derived from empirical validation research

C. A Discrepancy between Research and Practice: Use Weighted Application Blanks and

Biographical Data.

1. Weighted application blanks (WABs),

a) Rarely used by decision makers

b) Derive an objective weighting system based on an empirical study

c) Improves validity, particularly in predicting future turnover

2. Biographical information blanks (BIBs)

a) More personal and experiential (based on personal background and life

experiences)

b) Tool in predicting job turnover, job choice, and job performance

c) Used in the military and insurance industry (average validity is .35)

3. Accomplishment records

a) Limited to explanations of accomplishments

b) Accomplishments should be compatible with challenges facing the

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1. Should have large sample size (100).

2. Correlate responses to performance or turnover data.

3. Weights determined by items on which ineffective and effective employees differ

and magnitude of the relationship of the item with the job.

4. Research strongly supports the use of WABs, BIBs and accomplishment record in

selection (more so than using the application blank informally).

5. Requires sufficient data and research expertise to be successful

1. Fear of lawsuits and claims of negligent hiring

2. To assess the potential success of the applicant for the job

a) Former employers reluctant to provide information about former employees

1. Letters of reference are almost always positive

2. Generally low validity in the .20-.30 range for reference checks as predictors of job

performance

3. Constructed “letters of reference” are more effective

4. Good faith efforts to obtain verification of employment history make it possible for

1. Background checks should include criminal records only if applicable to job

2. Employers should try to obtain information to avoid potential negligent hiring

lawsuits

3. Fair Credit in Reporting Act (FCRA), amended in 2005, and state law both have

restrictions on what makes an “investigative consumer report” legal

a) Notice in writing to job candidate being investigated

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b) Validity is increased with this approach

E. Why Do Minorities Score Lower Than Whites on Cognitive Ability Tests?

1. There is no clear answer

2. Differences are not created by the tests

3. Related to inferior educational experiences

4. Require further information related to the development of cognitive abilities

F. How Do Organizations Deal with Race Differences on Cognitive Ability Tests?

1. Decisions based solely on test scores are likely to result in adverse impact

2. One strategy is to set a minimum cutoff score so that there is no violation of the

80% rule

3. Banding – group test scores based on data indicating that the bands of scores are

not significantly different from one another

4. Remove “culturally biased” questions on GMA tests

a) Research does not support this recommendation

5. Research suggests the following:

a. Targeted recruitment

1. Physical tests are classification of tests designed to assess physical attributes such

2. Sensory ability focus on hearing/sight/reaction time, test valid for prediction of

1. Performance is a function of both ability and motivation

2. Use of personality tests intended to measure personality and motivation is

increasing

3. 35% OF US companies use personality testing in selection

4. There is increasing evidence that these methods provide a valid means to predict

counterproductive work behavior

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5. The transition to team based work, and the need to predict how people behave and

perform in groups could be driving the increase in usage

6. What Is Personality?

a) An individual’s consistent pattern of behavior (psychological traits)

b) Many researchers use a five-factor model (FFM/ Big Five) of personality

i) Neuroticism/Emotional stability

1. self-esteem

2. self-efficacy

3. Neuroticism

4. Locus of control

7. How Do We Measure Personality?

a) Projective tests disguise the purpose and scoring process from the test taker

i) Rorschach Inkblot Test

8. Self-Report Personality Inventories: purpose to measure personality or motivation

with the respondent knowing the purpose and/or scoring procedure of the test

a) Minnesota Multiphasic Personality Inventory (MMPI) identifies pathological

1. The validity evidence is mixed

Chapter 06 – Personnel Selection

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a) Some have adequate validity

b) MSCS has average validity of .35 for selecting managers, no peer review of

research

c) Research on FFM found

i) Conscientiousness (C) and emotional stability (ES) have validity for all

jobs with Conscientiousness the most valid of the FFM (.31)

ii) The other 4 factors are valid for certain situations

iii) Extraversion correlated to jobs with a strong social component e.g.

sales and managerial positions

iv) High scores on Openness to Experience related to training acceptance

v) A combination of FFM factors can more successfully predict important

criteria than factors in isolation

2. Use of FFM sub-factors increases validity

3. Why is the validity relatively low?

a) Applicants can fake on self-report instruments

1. Predicting (and reducing) Voluntary Turnover

a) Rely on employee referrals

b) Put weight on tenure in previous jobs

2. Can We Predict Employee Theft?

a) Honesty/Integrity Tests

i) Popular since the Employee Polygraph Protection Act (1998) banned the

use of polygraph for selection

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vi) These test have also been shown to predict job performance in general

3. Can We Identify Applicant Who Will Provide Good Customer Service?

a) Service Orientation Index

4. Can We Identify Bad & Risky (and Costly) Drivers?

a) Previous driving record is single best predictor of on-the-job record

1. Study the test manual carefully.

2. Check reviews of the test in the Mental Measurements Yearbook

(see http://buros.unl.edu/buros/jsp/search.jsp)

3. Get names of companies using the test

4. Obtain a copy of the test and examine all items

VI. Drug Testing

A. Drug abuse has been linked to employee theft, accidents, absences, and other

counterproductive behavior

1. Guidelines and standards protect the confidentiality of test results

2. Interpersonal interactions exchange information and thus violate individuals’

privacy to some degree

3. In the interests of high productivity and staying within the law, they assert

organization may need to violate an individual’s privacy to a certain extent

1. Performance testing involves actual “doing” rather than “knowing how”

B. A work sample test reflects actual job responsibilities and tasks without the risk

1. Conducted under controlled circumstances

2. Tailored to match important activities of the job

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1. Duplicate real-life event but eliminate the risks of danger or damage

D. Situational Judgment Tests (SJT)

1. Number of job-related situations presented in written, verbal, or visual (video)

form

2. Incremental validity above other forms of testing

E. The performance testing process should be

1. Standardized

2. Consistent in administration

3. Include specific standards of performance

F. Proctored web-based testing for SJTs, biodata, and personality testing has benefits

above paper-and-pencil testing

G. What Is an Assessment Center?

1. Enables standardized evaluation of behavior on multiple inputs

2. Multiple trained observers/assessors and exercises are used

3. Used most frequently for managerial and supervisory selection

4. Individual’s strengths and weaknesses assessed through performance tests

5. Allows for direct comparison of internal and external candidates

6. Assessment of job dimensions and competencies from job analysis

a) Dimensions are clusters of behavior that are:

i) Specific

ii) Observable

7. Common assessment center exercises

a) In – Basket

b) Leaderless group discussions

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1. All candidates perform the same tasks

2. Candidates observed by different trained assessors in each exercise

3. Assessors meet to rate each candidate to derive and overall assessment rating

4. Evidence that assessment can be broken down to reduce cost, and that testing can

1. Validity

2. Lower adverse impact than GMA

3. More defendable in court

4. Method is ideal when there are both internal and external candidates

J. Performance Appraisals/Competency Assessment

1. Little research on predictive capabilities of performance

2. 360 competency ratings and assessment center data better prediction and less

adverse impact than supervisor ratings of potential

1. Attributes of the applicant can cause rating bias (stereotyping)

2. Attributes of the interviewer can cause rating bias (e.g. similar-to-me)

3. Situational attributes impacting attention to information can cause rating bias

E. What Is the Validity of Employment Interviews?

1. Validity is hampered by factors and biases but can be quite high

2. Recommendations for “high validity” interview:

a) Derive questions from job analysis results

3. Interview is a “test” and subject to same EEO laws

a) Process is similar to subjective nature of the performance appraisal, need to

avoid “excessive subjectivity”

b) Subject to theories based on intent and impact

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d) Race Discrimination has mixed evidence, higher ratings when interviewers

and interviewees are the same race

e) Age Discrimination depends upon the job under study

f) Disability Discrimination evidence insufficient to support conclusions

F. How Do We Improve the Validity of Interviews?

1. Standardize interview physical environment

2. Comprehensive interviewer training

a) Interviewers should

3. Interview Content

a) Exclude traits that can be measured thru more valid methods

b) Include interpersonal and motivational factors

1. Structured interviews ask the same questions of all candidates

2. Group/panel interviews consist of multiple interviewers

3. Situational interviews require interviewees to describe how they would behave in

specific situations

4. Behavioral interviews candidates describe actual experiences they have had in

1. Behavioral more valid

2. “High validity” interviews should be structured with behavioral questions derived

3. Interview data should not be overemphasized, but appropriately considered with

other valid information

Chapter 06 – Personnel Selection

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IX. Combining Data from Various Selection Methods

A. Use multiple approaches for selection

B. Possible approaches for personnel decisions

1. Clinical or holistic analysis without any formal method of weighting scores

2. Equal weighting of methods with rank ordering of standardized summed scores

3. Weigh scores based on empirical validity of each method; Recommended method

4. Weighting and mathematically combining scores known as actuarial prediction

C. Legal implications of using a multiple-step process

1. Conn v. Teal determined that even if the company hires proportionately, all steps in

the process need to be job related and free of illegal discrimination

2. Multiple steps increase the validity of the process

3. Helpful for job relatedness claims

D. Individual Assessment (IA)

1. Popular approach for selection of managers

2. Based on an overall assessment by psychologists

3. Holistic combination does not hold up to scientific scrutiny

4. Little evidence to support this approach

1. Over 50% of multinational companies had expatriate failure rates of over 20%

2. Failure was cited as being caused by:

a) Spouse’s adjustment to new environment

b) Manager’s adjustment to new culture

1. Applicant assessed on skills needed overseas that he/she possesses or can develop

in three-month training program

2. Personality traits examined to determine if applicant is suited for assignment

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1. Potential candidates are identified

2. Promising candidates contacted and given overview of the assignment (RJP)

3. Applicants are examined using several selection methods

a) Global Assignment Preparedness Survey – assesses candidates on six

4. Candidates are interviewed. Expatriates are recommended as interviewers

5. The more rigorous the selection process, the better the success rate

1. Asian examples of applications and frequencies

a) Korea uses tests more than other Asian countries

2. European examples of use and restrictions

3. The U.S. and England are employment tests research and development centers

1. Define the job with a focus on job specifications (competencies) compatible with

strategic goals and executing those goals

2. Recruit from a broad pool of candidates

3. Use valid initial screening devices

4. Do background/ reference checks

5. Use behavioral interviewing technique with structured format or independent

multiple interviewers asking behavioral questions.

6. Use weighting scheme for information

7. Extend an offer