Copyright © 2017 Pearson Education, Inc.
Part Two
Recruitment, Placement, and Talent Management
Chapter 6
Employee Testing and Selection
Lecture Outline:
Why Employee Selection Is Important
The Basics of Testing and Selecting Employees
Reliability
Validity
Trends Shaping HR: Digital and Social Media
Evidence-Based HR: How to Validate a Test
Bias
Utility Analysis
Improving Performance: HR as a Profit Center
Validity Generalization
Know Your Employment Law
Test Takers’ Individual Rights and Test Security
Diversity Counts: Gender Issues in Testing
How Do Employers Use Tests at Work?
Types of Tests
Tests of Cognitive Abilities
Tests of Motor and Physical Abilities
Measuring Personality and Interests
Improving Performance: HR Practices Around the Globe
Achievement Tests
Improving Performance: Computerization and Online Testing
Improving Performance: The Strategic Context
Work Samples and Simulations
Using Work Sampling for Employee Selection
Situational Judgment Tests
Management Assessment Centers
Situational Testing and Video-Based Situational Testing
The Miniature Job Training and Evaluation Approach
Realistic Job Previews
Choosing a Selection Method
Improving Performance: HR Tools for Line Managers and Small Businesses
Background Investigations and Other Selection Methods
Why Perform Background Investigations and Reference Checks?
Know Your Employment Law
How to Check a Candidate’s Background
Trends Shaping HR: Digital and Social Media
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Copyright © 2017 Pearson Education, Inc.
Using Pre-employment Information Services
Making the Background Check More Valuable
The Polygraph and Honesty Testing
Testing for Honesty: Practical Guidelines
Graphology
“Human Lie Detectors”
Physical Exams
Substance Abuse Screening
Drug Testing Legal Issues
Complying with Immigration Law
Chapter Review
Where We Are Now…
The purpose of this chapter is to explain how to use various tools to select the best candidate for
the job. The main topics we’ll cover include the selection process, basic testing techniques,
backgound and reference checks, ethical and legal questions in testing, types of tests, and work
samples and simulations.
Interesting Issues:
Google job candidates used to have a dozen or more grueling interviews. But, with Google
hiring thousands of people annually, this selection process proved too slow. Now Google uses
just four to five interviews, but lets all its employees express opinions on each candidate by
email, using what it calls “crowdsourcing.” The changes speed up hiring and bring Google’s
hiring policies more in line with its fast-growth strategy.
Learning Objectives:
6-1. Answer the questions: Why is it important to test and select employees?
6-2. Explain what is meant by reliability and validity.
6-3. List and briefly describe the basic categories of selection tests, with examples.
6-4. Explain how to use two work simulations for selection.
6-5. Describe four ways to improve an employer’s background checking process.
Annotated Outline:
I. Why Employee Selection Is Important – selecting the right employees is important
for three main reasons: 1) employees with the right skills will perform better for
you and the company; 2) it is costly to reruit and hire employees; and 3) inept
hiring has legal consequences.
II. The Basics of Testing and Selecting Employees
A. Reliability – refers to the consistency of scores obtained by the same person when
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Copyright © 2017 Pearson Education, Inc.
retested with identical or equivalent tests. You can measure reliability in several ways.
One is to administer a test to a group of people one day, re-administer the same test
several days later to the same group, and then correlate the first set of scores with the
second (test-retest reliability estimates). Or you could administer a test and then
administer what experts believe to be an equivalent test later; this would be an
equivalent or alternate form estimate. Or, compare the test taker’s answers to certain
questions on the test with his or her answers to a separate set of questions on the same
test aimed at measuring the same thing.
B. Validity – tells you whether the test is measuring what you think it’s suppose
to be measuring. It often refers to evidence that the test is job related – in other
words, that performance on the test accurately predicts job performance.
There are serveral ways to demonstrate a test’s validity:
1. Criterion validity – shows that scores on the test (predictors) are related to
job performance. It involves demonstrating statistically a relationship
between scores on a selection procedure and the job performance of a
sample of workers.
2. Content validity – is a demonstration that the content of a selection
procedure is representative of important aspects of performance on the
job.
3. Construct validity – involves demonstrating that (a) a selection procedure
measures a construct (an abstract idea such as morale or honesty) and (b)
the construct is important for successful job performance.
C. Trends Shaping HR: Digital and Social Media
D. Evidence-Based HR: How to Validate a Test – in order for a selection test to be useful,
you need evidence that scores on the test relate in a predictable way to performance on
the job. The validation process consists of five steps:
1. Analyze the Job – the aim is to specify the human traits and skills you believe
are required for the job performance. These requirements become the predictors
that also define “success on the job.” The standards of success are criteria.
2. Choose the Test – use test in a manner consistent with equal employment laws
and in a manner that is ethical and protects the test taker’s privacy.
3. Administer the Test – with employees currently on the job, you compare their
test with their current performance. A more dependable way is to test
applicants before you hire them, then measure their performance and compare it
to earlier test scores.
4. Relate Your Test Scores and Criteria – ascertain if there is a significant
relationship between test scores (predictors) and performance (criterion).
5. Cross-Validate and Revalidate – before using the test, you may want to check it
by performing steps 3 and 4 on a new sample of employees, in other words –
revalidate.
E. Bias – employers must be careful to avoid bias whenever possible.
F. Utility – knowing the test is reliable and valid is important, but one must also consider
the practical use of the test. Completing a utility analysis shows the degree to which a
selection test improves the quality of those selected versus what decision would have
been made without it. Utility analysis usually includes the validity of the measures, a
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Copyright © 2017 Pearson Education, Inc.
measure of job performance in dollars, the applicant’s average test scores, the cost of
the measure, and the number of applicants tested and selected.
G. Improving Performance: HR as a Profit Center
H. Validity Generalization – “refers to the degree to which evidence of a measure’s
validity obtained in one situation can be generalized to another situation without
further study.”
I. Know Your Employment Law
1. Testing and the Equal Employment Opportunity – with respect to testing, the
EEO laws boil down to two things: a) you must be able to prove that your tests
are related to success or failure on the job, and b) you must prove that your tests
don’t unfairly discriminate against either minority or nonminority subgroups.
J. Test Takers’ Individual Rights and Test Security – test takers have certain rights to
privacy and information under the American Psychological Association’s (APA)
standard for educational and psychological tests. The Federal Privacy Act provides
protection against disclosing information about them to people outside the company.
K. Diversity Counts: Gender Issues in Testing – gender issues may distort results.
L. How Do Employees Use Tests at Work? – in general, as work demands increase (in
terms of skill requirements, training, and pay), employers tend to rely more on
selection testing. And employers don’t use tests just to find good employees, but also
to screen out bad ones.
III. Types of Tests
A. Tests of Cognitive Abilities – cognitive tests include tests of general
reasoning ability (intelligence) and tests of specific mental abilities like
memory and inductive reasoning.
1. Intelligence Tests – are tests of general intellectual abilities ranging
from memory, vocabulary, and verbal fluency to numerical ability.
2. Specific Cognitive Abilities – are tests (aptitudes) that include
inductive and deductive reasoning, verbal comprehension, memory,
and numerical ability.
B. Tests of Motor and Physical Abilities – employers may use various tests to
measure such motor abilities as finger dexterity, manual dexterity, and reaction
time. They may also want to measure such physical abilities as static strength,
dynamic strength, body coordination, and stamina.
C. Measuring Personality and Interests – can be used to assess characteristics
such as attitude, motivation, and temperament. These tests measure basic
aspects of an applicant’s personality, such as introversion, stability, and
motivation. Interest inventories compare one’s interest to those of people
in various occupations.
D. Improving Performance: HR Practices Around the Globe
1. Testing for Assignments Abroad – living and working abroad requires some
special talents. Employers often use special inventories such as the Global
Competencies Inventory (GCI) which focuses on three aspects of adaptability:
Perception Management Factor, Relationship Management Factor, and Self-
Management Factor.
E. Achievement Tests – measures what someone has learned.
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F. Improve Performance Through HRIS: Computerization and Online Testing
G. Improve Performance: The Strategic Context
IV. Work Samples and Simulations
A. Using Work Sampling for Employee Selection – the basic procedure is to select a
sample of several tasks crucial to performing the job, and then to test applicants on
them. Figure 6-7 illustrates this.
B. Situational Judgment Tests – are personnel tests “designed to assess an applicant’s
judgment regarding a situation encountered in the workplace.”
C. Management Assessment Centers – is a 2-to 3-day simulation in which candidates
perform realistic management tasks under the observation of experts who appraise
each candidate’s leadership potential. Typical simulated tasks include: The in-basket,
Leaderless group discussion, Management games, Individual oral presentations,
Testing, and The interview.
D. Situational Testing and Video-Based Situational Testing – typically presents the
candidate with several online, or computer video situations, each followed by one or
more multiple-choice questions.
E. The Miniature Job Training and Evaluation Approach – involves training candidates to
perform several of the job’s tasks and then evaluating the candidates’ performance
prior to hire.
F. Realistic Job Previews – being explicit about work schedules, preferences, and
other job standards during the interview can help reduce turnover later.
G. Choosing a Selection Method – the employer needs to consider several things: the
tool’s reliability and validity, its return on investment (in terms of utility analysis),
applicant reactions, usability, adverse impact, and the tool’s selection ratio.
H. Improving Performance: HR Tools for Line Managers and Small Businesses
V. Background Investigations and Other Selection Methods
A. Why Perform Background Investigations and Reference Checks? – most
employers check and verify an applicant’s background information and
references. There are two main reasons to check backgrounds – to verify
the applicant’s information (name and so forth) and to uncover damaging
information. Another is legal reasons.
B. Know your Employment Law
1. Giving References – there are laws that affect references and thus,
most employers restrict who can give a reference and what they can
say.
C. How to Check a Candidate’s Background – most employers at least try to
verify an applicant’s current or former position and salary with current or
former employers by phone, (assuming you cleared doing so with the
candidate). Many employers get background reports from commercial
credit rating companies for information about credit standing,
indebtedness, reputation, character, and lifestyle.
D. Trends Shaping HR: Digital and Social Media
E. Using Preemployment Information Services – these services use databases
to access information about matters such as workers’ compensation, credit
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Copyright © 2017 Pearson Education, Inc.
histories, and conviction and driving records. Automatic Data Processing
Inc., First Advantage, HireRight, and Sterling Backcheck are some of the
providers.
F. Making the Background Check More Valuable – there are steps one can
take to improve the usefulness of the background information being
sought. Specifically:
1. Include on the applicaton form a statement for applicants to sign
explicitly authorizing a background and credit check.
2. Use a form for telephone reference. Figure 6-8 illustrates this.
3. Be persistence and attentive to possible red flags.
4. Compare the application to the resume.
5. Try to ask open-ended questions (such as “How much structure
does the applicant need in his/her work?”)
6. Ask the reference supplied by the applicant to suggest other
references.
G. The Polygraph and Honesty Testing – the polygraph is a device that
measures physiological changes like increased perspiration.
1. Written Honesty Test – known as paper-and pencil (or
computerized or online) honesty tests; designed to predict the job
applicants’ proneness to dishonesty and other forms of
counterproductivity.
H. Testing for Honesty: Practical Guidelines – there is a lot a manager can do
to screen out dishonest applicants or employees such as: ask blunt
questions, listen, rather than talk, watch for telltale body signals, do a
credit check, check all employment and personal references, use written
honesty and psychological tests, test for drugs, and establish a search and
seizure policy and conduct searches.
I. Graphology – the use of handwriting analysis to determine the writer’s
basic personality traits.
J. “Human Lie Detectors” – experts who may (or may not) be able to
identify lying just by watching candidates.
K. Physical Exams – once an offer is made and the person is hired, a
medical exam is usually the next step in the selection process.
L. Substance Abuse Screening – employers may use urine testing to test for
illicit drugs, breath alcohol test to determine amount of alcohol in the
blood, blood test to measure alcohol or drugs in the blood at the time of
the test, hair analysis to reveal drug history, saliva tests for substances
such as marijuana and cocaine, and skin patches to determine drug use.
M. Drug Testing Legal Issues – several federal laws affect workplace drug
testing.
N. Complying with Immigration Law – employees hired in the United States
must prove his/her identity and employment eligibility to work in the U.S.
Chapter Review
Chapter 6: Employee Testing and Selection 6-7
Copyright © 2017 Pearson Education, Inc.
Chapter Section Summaries:
6-1: Careful, employee selection is important for several reasons.
6-2: Whether you are administering tests or making decisions based on test results,
managers need to understand several basic testing concepts.
6-3: Whether they are administered via paper and pencil, by computer, or online, we
discussed several main types of tests.
6-4: With work samples and simulations, you present examinees with situations
representative of the jobs for which they are applying.
6-5: Testing is only part of an employer’s selection process; you also want to conduct
background investigations and other selection procedures.
Discussion Questions:
6-1: What is the difference between reliability and validity?
Reliability is the consistency of scores obtained by the same person when retested with an
identical test or with an equivalent form of a test. It is a measure of internal consistency of
the instrument. Validity is the degree to which a test measures what it is purported to
measure. It is a measure of external consistency. They are similar in that both are concerned
with aspects of consistency of the instrument, and that reliability is a necessary condition for
validity.
6-2: Explain why you think a certified psychologist who is specially trained in test
construction should (or should not) be used by a small business that needs an
employment test.
Due to the complex and legal nature of this activity, the use of a certified psychologist may
be the only safe way to accomplish your objectives. However, because of the high salary and
limited job scope of such a specialist, a definite drawback to this approach is the cost
involved. Perhaps more “direct” tests can be developed which require less sophistication:
motor and physical abilities tests (many state employment agencies provide this service), on-
job knowledge tests, and work sampling. This chapter also presents some alternative testing
tools that are relatively easy to administer and low in cost, and that are reasonable choices for
small employers to use.
6-3: Why is it important to conduct pre-employment background investigations? How
would you do so?
This item can be assigned as a Discussion Question in MyManagementLab. Student
responses will vary.
6-4: Explain how you would get around the problem of former employers being
unwilling to give bad references on their former employees.