Human Resource Management: Gaining a Competitive Advantage Chapter Selection and Placement McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc All rights reserved Learning Objectives Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability Discuss how the particular characteristics of a job, organization, or applicant affect the utility of any test Describe the government’s role in personnel selection decisions, particularly in the areas of constitutional law, federal laws, executive orders and judicial precedent List the common methods used in selecting human resources Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality 6-2 Selection Method Standards for Evaluation Purposes Reliability Validity Generalizability Utility Legality 6-3 Reliability Reliability is the degree to which a measure of physical or cognitive abilities, or traits, is free from random error The correlation coefficient is a measure of the degree to which two sets of numbers are related A perfect positive relationship equals +1.0 A perfect negative relationship equals - 1.0 Test-retest reliability- knowing how scores on the measure at one time relate to scores on the same measure at another time 6-4 Validity Validity is the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance Criterion-related validation is a method of establishing the validity of a personnel selection method by showing a substantial correlation between test scores and jobperformance scores The types include: – Predictive validation – Concurrent validation 6-5 Criterion-Related Validity Predictive Test Applicants Measure Performance Of Those Hired TIME Concurrent Test Existing Employees Measure their Performance TIME 6-6 Content Validation Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job Best for small samples Achieved primarily through expert judgment 6-7 Generalizability Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts Contexts include: different situations (jobs or organizations) different samples of people different time periods 6-8 Utility Utility is the degree to which information provided by selection methods enhances the effectiveness of selecting personnel -Utility is impacted by reliability, validity and generalizability 6-9 Legality All selection methods must conform to existing laws and legal precedents Three acts have formed the basis for a majority of the suits filed by job applicants: – Civil Rights Act of 1964 and 1991 – Age Discrimination in Employment Act of 1967 – Americans with Disabilities Act of 1991 6-10 Age Discrimination in Employment Act of 1967 Covers over age 40 individuals No protection for younger workers • Outlaws almost all “mandatory retirement” programs 6-12 Americans with Disabilities Act Protects individuals with physical or mental disabilities (or with a history of the same) Reasonable accommodations are required by the organization to allow the disabled to perform essential functions of the job An employer need not make accommodations that cause undue hardship Restrictions on pre-employment inquiries 6-13 Executive Orders Executive Order 11246 parallels the Civil Rights Act of 1964 and goes beyond by: requiring affirmative action to hire qualified protected group applicants and allowing the government to suspend all business with a contractor during an investigation The Office of Federal Contract Compliance and Procedures (OFCCP) issues guidelines and helps companies comply 6-14 Types of Selection Methods Interviews Honesty Tests and Drug Tests Work Samples Personality Inventories References and Biographical Data JOBS HR Physical Ability Tests Cognitive Ability Tests 6-15 Interviews Selection interviews-a dialogue initiated by one or more persons to gather information and evaluate the an applicant’s qualifications for employment To increase an interview’s utility: Interviews should be structured, standardized, and focused on goals oriented to skills and observable behaviors Interviewers should be able to quantitatively rate each interview Interviewers should have a structured note-taking system that will aid recall to satisfying ratings 6-16 Situational Interview A situational interview confronts applicants on specific issues, questions or problems likely to arise on the job Situational interviews consist of: – experience-based questions – future-oriented questions 6-17 Other Selection Methods An individual should manage their digital identity the same way they manage their résumé References, biographical data, and applications gather background information on candidates Physical ability tests are relevant for predicting job performance, occupational injuries and disabilities Physical ability tests include: muscular tension, power, and endurance cardiovascular endurance flexibility balance coordination 6-18 Other Selection Methods A cognitive ability test differentiates individuals based on their mental rather than physical capacities Commonly assessed abilities: verbal comprehension quantitative ability reasoning ability Personality inventories categorize individuals by their personality characteristics Work samples simulate a job in miniaturized form 6-19 Cognitive Ability Tests Dimensions Cognitive Ability Tests: Verbal Comprehension Quantitative Ability Reasoning Ability Verbal Comprehension -a person’s capacity to understand and use written and spoken language Quantitative Ability - the speed and accuracy with which one can solve arithmetic problems Reasoning Ability - a person’s capacity to invent solutions to diverse problems 6-20 Personality Inventories Extroversion Inquisitiveness Adjustment Agreeableness Conscientiousness 6-21 Emotional Intelligence Self- awareness Self- regulation Self- motivation Empathy Social Skills 6-22 Work Sample Tests Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs in the simulated job Assessment Center- a process in which multiple raters evaluate employees’ performance on a number of exercises 6-23 Honesty Tests Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharmaceutical and security guard suppliers Paper-and-pencil honesty testing attempts to assess the likelihood that employees will steal – Since these tests are new, there is little evidence on their effectiveness 6-24 Drug Tests Drug-use tests tend to be reliable and valid Major controversies of drug tests include: Is it an invasion of privacy? Is it an unreasonable search and seizure? Is it a violation of due process? Tests should be administered systematically to all applicants applying for the same job Testing is likely to be more defensible when there are safety hazards associated with the failure to perform Test results should be reported to the applicant, who should have an avenue to appeal 6-25 Summary Job applicants and an organization’s viability are strongly affected by decisions regarding who is accepted and rejected for positions There are numerous alternatives to this for making such decisions, many of which have been validated and supported by years of research 6-26 [...]... tests are relevant for predicting job performance, occupational injuries and disabilities Physical ability tests include: muscular tension, power, and endurance cardiovascular endurance flexibility balance coordination 6-18 Other Selection Methods A cognitive ability test differentiates individuals based on their mental rather than physical capacities Commonly assessed abilities: verbal... to all applicants applying for the same job Testing is likely to be more defensible when there are safety hazards associated with the failure to perform Test results should be reported to the applicant, who should have an avenue to appeal 6-25 Summary Job applicants and an organization’s viability are strongly affected by decisions regarding who is accepted and rejected for positions There are... quantitative ability reasoning ability Personality inventories categorize individuals by their personality characteristics Work samples simulate a job in miniaturized form 6-19 Cognitive Ability Tests 3 Dimensions Cognitive Ability Tests: 1 Verbal Comprehension 2 Quantitative Ability 3 Reasoning Ability Verbal Comprehension -a person’s capacity to understand and use written and spoken language... applicant’s qualifications for employment To increase an interview’s utility: Interviews should be structured, standardized, and focused on goals oriented to skills and observable behaviors Interviewers should be able to quantitatively rate each interview Interviewers should have a structured note-taking system that will aid recall to satisfying ratings 6-16 Situational Interview A situational... Employment Act of 1967 Covers over age 40 individuals No protection for younger workers • Outlaws almost all “mandatory retirement” programs 6-12 Americans with Disabilities Act Protects individuals with physical or mental disabilities (or with a history of the same) Reasonable accommodations are required by the organization to allow the disabled to perform essential functions of the job An employer... confronts applicants on specific issues, questions or problems likely to arise on the job Situational interviews consist of: – experience-based questions – future-oriented questions 6-17 Other Selection Methods An individual should manage their digital identity the same way they manage their résumé References, biographical data, and applications gather background information on candidates Physical ability... Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs in the simulated job Assessment Center- a process in which multiple raters evaluate employees’ performance on a number of exercises 6-23 Honesty Tests Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharmaceutical and security guard suppliers Paper-and-pencil... Rights Act of 1991 Protects individuals from discrimination based on race, color, sex, religion and national origin Differs from the 1964 act in three areas: 1 Establishes employers' explicit obligation to establish neutral-appearing selection method 1 Allows a jury to decide punitive damages 2 Explicitly prohibits the granting preferential treatment to minority groups 6-11 Age Discrimination in... language Quantitative Ability - the speed and accuracy with which one can solve arithmetic problems Reasoning Ability - a person’s capacity to invent solutions to diverse problems 6-20 Personality Inventories Extroversion Inquisitiveness Adjustment Agreeableness Conscientiousness 6-21 Emotional Intelligence Self- awareness Self- regulation Self- motivation Empathy Social Skills 6-22 Work Sample... Compliance and Procedures (OFCCP) issues guidelines and helps companies comply 6-14 Types of Selection Methods Interviews Honesty Tests and Drug Tests Work Samples Personality Inventories References and Biographical Data JOBS HR Physical Ability Tests Cognitive Ability Tests 6-15 Interviews Selection interviews -a dialogue initiated by one or more persons to gather information and evaluate the an applicant’s