Human Resource Selection, 8e Gatewood Human Resource Selection, 8e © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Using Selection Data In this last section of the text, Part 4, will help you take advantage of the job-related predictor information you collect We offer you practical advice on how you can use that information to interpret the scores you have gathered Hopefully, our guidelines and suggestions will increase your chances of making the best personnel selection decisions © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection Decision Making Chapter 15 © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection Decision Making Even when an organization collects reliable and valid selection procedure data, poor implementation can undermine the entire selection system Do not combine “gut instincts” with the selection data Keep a record of your decision-making process, and audit it occasionally Which employees performed well? Which did not? © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection Decision Making (2) Answering these questions will improve employment decision making: 1. For a specific selection situation, what are the best methods for collecting predictor information on job applicants? 2. Because we often collet applicant information using more than one predictor, how should we combine scores? 3. Once we have a total score, how should this score be sued to make selection decisions? © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Modes for Collecting Predictor Information We all make selection decisions in our daily lives, but we sometimes make errors This is measurement error In personnel selection, decision makers collect information from job applicants using predictors that reflect one of two different measurement philosophies Table 15.1 shows two examples of modes used to collect predictor information © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.1 – Modes of Collecting Predictor Information … © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Modes for Combining Predictor Information Once data is collected, the information must be combined to reach a selection decision Table 15.2 shows two modes (judgmental and mechanical) for combining predictor information When predictor data are combined with gut instincts, predictor data have been combined judgmentally © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.2 – Modes of Combining Predictor Information … © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Methods for Collecting & Combining… We describe 6 methods for collecting and combining predictor information These describe how selectin decision makers collect & combine information mechanically, judgmentally, or both Table 15.3 lists these methods and provides an example of each Some methods are more effective than others © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.3 – Methods of Collecting & Combining Predictor Information … © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Which Method is Best? Meehl’s work concluded that clinical experts’ intuitive predictions of human behavior were significantly less accurate than predictions made using more formal, mechanical means A later review found that pure statistical and mechanical composite methods for collecting and combining data were always either equal or superior to all other methods © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Which Method is Best? (2) A recent review concluded that the major issue is how data are combined, rather than how data are collected Conclusion: mechanical methods of combining predictor data improved the ability to predict work performance by more than 50% The rate of identifying acceptable hires was reduced by more than 25% when judgmental data combination methods were used © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Implications for Selection Decision Makers 1. Be careful about relying too heavily on resumes and other initial information 2. Use standardized selection procedures that are reliable, valid and suitable for the specific selection purpose 3. When feasible, use selection procedures that minimize the role of decision maker judgment; use structured interviews, objectively scored inventories, etc. © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Selection… Implications for Selection Decision Makers (2) 4. Avoid using judgment in combining data collected from two or more selection procedures used for determining applicants’ overall scores 5. In some settings, managers having position authority might insist on interjecting their clinical intuition. However, that would lead to a significant loss of information and reduced decision quality © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods for Combining Predictor Scores There are many different ways of mechanically combining predictor scores We describe and give an example of two methods, each with a long history of use in human resource selection and other fields: (a) multiple regression (b) unit weighting Table 15.4 presents the data for the job of patient account representative © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.4 – Patient Account Rep Selection Procedure & …Score Data © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method One: Multiple Regression Multiple regression shows the maximum linear association between two or more predictors and a criterion Applicant’s scores can be entered into an equation: © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method One: Multiple Regression (2) Because it is possible to compensate fro low scores on one predictor by high scores on another, multiple regression may be referred to as a compensatory method Multiple regression makes 2 basic assumptions: (a) predictors are linearly related to the criterion (b) the predictors are additive and can compensate for one another © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method One: Multiple Regression (3) Multiple regression strategy has several advantages: It minimizes errors in prediction and combines predictors to yield best estimate of applicant’s future performance It is very flexible, and can be modified to handle nominal data, nonlinear relationships, or both Regression equations can be constructed using the same predictors weighted differently, or different predictors © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method One: Multiple Regression (4) Multiple regression strategy also has disadvantages: Some statistical issues difficult to resolve If a small sample size is used to determine regression weights or predictors are correlated with one another, weights will not be able from one sample to the next and standard errors of weights increase; cross validation essential If no preliminary screening, multiple regression requires assessing all applicants on all predictors, which can be costly with a large applicant pool © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method Two: Unit Weighting Multiple-regression model called a proper linear model because predictors are identified to maximize the relationship with the criterion An improper linear model is chosen by some non-optimal means (based on a theory, job analysis results, opinions of SMEs, etc.) With sample sizes pf up to 100, unit weights and regression weights perform about equally When sample sizes are less than 75, unit weights perform better © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Methods …Combining …Scores Method Two: Unit Weighting (2) How is unit weighting of predictors calculated? See the sample in Table 15.5 For each applicant, raw math and interview scores converted into z scores to standardize them One predictor can be weighted more than other predictors Always standardize the predictor scores before assigning different weights © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.5 – Combining Predictor Scores through Multiple Regression & Composite z Scores © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies for Making Employment Decisions Numerous strategies have been reported on the human resource selection literature We will devote our attention to these: (a) top-down selection (b) cutoff scores (c) multiple cutoff scores (d) multiple hurdles (e) a combination method, and (f) banding (including fixed & sliding bands © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy One: Top-Down Selection Applicants’ scores are rank-ordered from highest to lowest Assumes person with higher score will perform better on job Beginning with applicant at top of list, with highest score, job offers extended until all jobs filled Maximum utility is gained from a predictor when top-down hiring used But likely results in adverse impact © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Two: Cutoff Scores Applicants scoring below the cutoff score are rejected Judgment plays a role in choosing the method for setting the cutoff score Rationale and specific procedures for setting that score should be carefully documented Cutoff scores can be set in two ways: (a) on how applicants performed on a selection procedure (b) judgments of SMEs re content used to set © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.6 –The Ebel Method for Setting Cutoff Scores © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.7 –The Angoff Method for Setting Cutoff Scores © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Two: Cutoff Scores (2) Legal and Psychometric Issues The Uniform Guidelines: adverse impact should be considered The Principles for the Validation & Use of Personnel Selection Procedures: if based on valid predictors demonstrating linearity…cutoff scores may be set as high or low as needed to meet the firm’s requirements Table 15.8 contains guidelines © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Table 15.8 –Selected Guidelines for Using Cutoff Scores in Selection… © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies. Employment Decisions Strategies.. Employment Decisions Strategy Three: Multiple Cutoff Scores Each applicant is assessed on each predictor All predictors are scored on a pass-fail basis Applicants are rejected if any one of their predictor scores falls below a minimum cutoff score Method assumes: (a) A nonlinear relationship exists among the predictors and the criterion (b) predictors are not compensatory © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies. Employment Decisions Strategies.. Employment Decisions Strategy Three: Multiple Cutoff Scores (2) Advantages: Narrows the applicant pool to a smaller subset or candidates who are all minimally qualified Conceptually simple and easy to explain to managers Disadvantages: Requires assessing all applicants using all predictors; if large pool, costly Approach identifies only applicants minimally qualified; no way to rank-order them © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Four: Multiple Hurdles Each applicant must meet minimum cutoff or hurdle for each predictor before going to next Failure to pass a cutoff at any stage means applicant dropped from further consideration In double-stage strategy, two cutoff scores are set, C1 and C2 (See Figure 15.1) Those whose scores above C2 are accepted Those whose scores below C1 are rejected Those whose scores between C1 and C2 accepted provisionally © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Figure 15.1 –Double-Stage Multiple Hurdle Strategy © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Five: Combination Method A combination of a hybrid of the multiple- cutoff and multiple-regression approaches Each applicant measured on each predictor Any applicant with score below a minimum cutoff is rejected Next, multiple regression is used to calculate overall scores for all applicants who pass Applicants who remain are rank-ordered based on overall scores calculated by regression equation © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Five: Combination Method (2) Method has the advantages of the multiple- cutoff strategy, but additionally provides a way to rank-order acceptable applicants Disadvantage is that it is more costly than the multiple-hurdle approach Combination method most appropriate when multiple cutoffs are reasonable and predictors compensatory and size of applicant pool not too large © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Six: Banding Banding can address adverse impact Establish ranges of scores where scores within that range are treated as the same For those scores within a band, other means or attributes are used to choose among them Rationale: scores do not have perfect reliability Small differences in scores are due to measurement error © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Six: Banding (2) Establishing Bands Two methods used to determine whether scores differ, each requiring calculation: (a) standard error of measurement method (b) standard error of differences Fixed and Sliding Bands In fixed bands (top-score referenced bands) use the top applicant score as the starting point See Figure 15.2 © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Figure 15.2 –Illustration of Fixed & Sliding Bands for Comparing…Scores © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Six: Banding (3) Fixed and Sliding Bands (cont.) Sliding bands also based on top applicant’s score Then the band is recalculated using the next highest score; sequential Selecting Within a Band Once bands created, other specifications used to choose people within the same band: Interpersonal skills Job experience Work performance, etc. © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Six: Banding (4) Advantages of Banding Employer has more flexibility in hiring decisions Banding helps employer take into account factors not measured by traditional selection methods The very narrow perspective of maximum economic gain from than top-down selection ignore the social and financial impacts of not having a diverse workforce © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Strategies.. Employment Decisions Strategy Six: Banding (5) Concerns Regarding Banding Banding makes it possible to choose a larger number of minorities, but debate re whether using banding to identify equally qualified people, then choosing on the basis of minority status will withstand legal challenge But when minority status used with other specifications when selecting Problem if banding cannot be used to reduce adverse impact, but banding leads to loss of economic utility © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

A Practical Approach to Making Selection Decisions When choosing selection procedures, ask: (a) should procedure be sequential or not? (b) should the decision be compensatory or not? (c)should the decision be based on ranking applicants or on banding? Assess job and nature of work performance; what determines success? Implement the strategy systematically using a mechanical strategy © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

A Practical Approach to Making Selection Decisions (2) Often not possible for small businesses to build objective strategies Must build a systematic way of combining selection procedure data Bootstrapping is based on the assumption that tho people can make sound judgments, they are not able to articulate how they did it Through regression analysis infer the weights used by the decision maker to arrive at ranking Whatever method you choose, it is critical procedures be perceived as fair © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Auditing Selection Decisions: Learning From Your Successes … The only way to improve your selection decision making is to learn from what you have done in the past Validation studies identify those factors that will predict job success and those that do not Most managers do not think about their success and failure rate when it comes to making selection decisions, but should Even a simple box-score tally of success and failures helps © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Recommendations for Enhancing Selection Decision Making 1. Use standardized, reliable, and valid selection procedures for collection information on job applicants whenever possible 2. Encourage decision makers to participate in the data-collection process, but discourage them from combining scores with their gut feelings 3. When combining selection procedure scores, use a mechanical means for doing so, for example, multiple regression, unit weighting 4. Train managers & others making selectin decisions to make systematic decisions, p © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Recommendations for Enhancing Selection Decision Making 4. Train managers & others making selectin decisions to make systematic decisions, preferably using one of the objective (mechanical) strategies described 5. Although difficult, small businesses can specify, in advance, (a) the weight of standards to be used in evaluating candidates, (b) the procedures used for judging whether applicants meet those standards, (c) the procedures for combining the standardized weights multiplied by the ratings given in order to arrive at an overall score © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Recommendations for Enhancing Selection Decision Making 6. Decide whether a compensatory method for selecting job applicants will be used. The relative value an organization places on minority hiring versus performance will likely affect the choice of selection method 7. For organizations using cutoff scores, the modified Angoff procedure is acceptable © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Recommendations for Enhancing Selection Decision Making 8. Assuming a selection procedure predicts work performance, and that all applicants who are offered employment accept, maximum work performance will occur when top-down selection is used. But, disparate impact against racial minorities is likely if the procedure is highly correlated with general mental ability 9. Banding of selection procedure scores has been support in the courts. However, using minority status alone as a basis for selecting within bands probably not legal © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Recommendations for Enhancing Selection Decision Making 10. For jobs in which selectin has taken place, decide on a standard for defining a successful hire (ex: on the job 6 months or more), and an unsuccessful hire (ex: persons’ dollar sales fall below minimum standard, or supervisor ratings low). Then have managers keep track of hits and misses 11. Periodically audit selectin decisions throughout the organization to identify areas or individuals needing improvement © 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.