Employee Testing and Selection 6 Employee Testing and Selection The purpose of Chapter 6 is to explain how to use varioustools to select the best candidates for thejob. The main topics we’ll cover include selection, testing,background and reference checks, ethicaland legal questions, types of tests,and work samples and simulations. Copyright © 2013 Pearson Education

Learning Objectives Explain what is meant by reliability and validity. Explain how you would go about validating a test. List eight tests you could use for employee selection, and how you would use them. Give two examples of work sample/simulation tests. Give examples of some of the ethical and legal considerations in testing. By the time we finish this chapter, you will be able to: Explain what is meant by reliability and validity. Explain how you would go about validating a test. Cite and illustrate our testing guidelines. Give examples of some of the ethical and legal considerations in testing. Copyright © 2013 Pearson Education

Learning Objectives List eight tests you could use for employee selection, and how you would use them. Give two examples of work sample/simulation tests. Give examples of some of the ethical and legal considerations in testing. In addition, you will be able to: List eight tests you could use for employee selection, and how you would use them. Give two examples of work sample/simulation tests. Give examples of some of the ethical and legal considerations in testing. Copyright © 2013 Pearson Education

Why Careful Selection is Important Performance - performance always depends on employees Cost – Recruiting and hiring is costly Legal obligations - mismanaging hiring has legal consequences Careful selection is important for three main reasons: performance, costs, and legal obligations. First, your own performance always depends on your subordinates. Second, it is important because it’s costly to recruit and hire employees. As the opening story in this chapter indicated, Google’s hiring process was streamlined due to the amount of time taken for interviews. Time spent by employees equates to the costs of not being productive in their jobs. Third, it’s important because mismanaging hiring haslegal consequences. Person-job fit refers to identifying the knowledge, skills, abilities (KSAs), and competencies that are central to performing the job. Then we must match the KSAs to the prospective employee’s knowledge, skills, abilities, and competencies. Copyright © 2013 Pearson Education

Person and job/organization fit It refers to identifying the knowledge, skills, abilities (KSAs), and competencies that are central to performing the job. Then we must match the KSAs to the prospective employee’s knowledge, skills, abilities, and competencies. Copyright © 2013 Pearson Education

Explaining what is meant by reliability and validity Now, we will discuss another form of evidence-based HR management, the definition and use of reliability and validity. Copyright © 2013 Pearson Education

Basic Testing Concepts Reliability Validity Criterion validity Content validity Construct validity A test is basically a sample of a person’s behavior. Using a test (or any selection tool) assumes the tool is both reliable and valid. A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or takes the same test on two or more different occasions. Validity tells you whether the test is measuring what you think it’s supposed to be measuring. Now, let’s discuss three types of validity. Criterion validity involves demonstrating statistically there is a relationship between scores on a selection procedure and the job performance of a sample of workers. It means showing that workers who do well on the job also do well on the test. Content validity shows that the content of a selection procedure is representative of important aspects of performance on the job. Constructs representan underlying human trait or characteristic such as honesty.Construct validity demonstratesthat a selection procedure measures a construct and that the construct is important for successful job performance. Copyright © 2013 Pearson Education

Reliability Reliability = consistency Reliability test is one that yields consistent scores when a person takes two alternate forms of the test or takes the same test on two or more different occasions. Eg.: A test score one day and a test score the next day are related. Measuring reliability generally involves comparing two measures that assess the same thing. It is typical to judge a test’s reliability in terms of a correlation coefficient (in this case, a reliability coefficient). Such a coefficient shows the degree to which the two measures (say, a test score one day and a test score the next day) are related. A selection test must be valid. Without proof of validity, there is no logical or legally permissible reason to continue using it to screen job applicants. Remember that a valid test is one that measures what you intend to measure. A typing test, for example, clearly would be a valid test of keyboarding skills. Copyright © 2013 Pearson Education

Validity Validity = measuring what you intend to measure Validity tells you whether the test is measuring what you think it’s supposed to be measuring. A selection test must be valid. Without proof of validity, there is no logical or legally permissible reason to continue using it to screen job applicants. Eg: A typing test, for example, clearly would be a valid test of keyboarding skills. Copyright © 2013 Pearson Education

How to go about validating 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. We will now discuss the steps needed to validate a test. Copyright © 2013 Pearson Education

Evidence-Based HR: How to Validate a Test Analyze the job – choose predictors (e.g. human traits, skills) and criteria (performance) Choose the test Administer the test on the employees Relate – Determine if there is significant rship (use statistical testing) Cross-validate – perform Step 3 and 4 for a new sample of employees First, analyze the job and write job descriptions and job specifications. Your goal is to specify the human traits andskills (predictors) you believe are required for job performance. Next, decide how to test for the predictors and choose the tests. You usually will base this choice on experience, previous research, and “best guesses.” You likely will choose several tests and combine them intoa test battery. One option is to administer the tests to employees currently on the job. You then comparetheir test scores with their current performance; this is concurrent (at the same time)validation. Its main advantage is that data on performance are readily available. Predictive validation is the second and more dependable way to validate a test. Here you administer the test to applicants before you hire them. Then hire theseapplicants using only existing selection techniques (such as interviews). You would not use the results of the newtests. After they have been on the job for some time, measure their performanceand compare it to their earlier test scores. Next, determine if there is a significant relationship between test scores (the predictor) andperformance (the criterion). The usual way to do this is to use statistical testing. Finally, before using the test, you may want to check it by “cross-validating”—in other words, by again performing steps 3 and 4 on a new sample of employees. Copyright © 2013 Pearson Education

Tests for employee selection, and how you would use them We can conveniently classify tests according to whether they measure cognitive (mental) abilities, motor and physical abilities, personality and interests, or achievement.We’lllook at each. Copyright © 2013 Pearson Education

Types of Tests Cognitive abilities Motor & physical abilities Intelligence tests Specific cognitive abilities Motor & physical abilities Measuring personality Interest inventories Achievement tests Cognitive tests include testing general reasoning ability or intelligence. In addition, they include tests of specific mental abilities such as memory or inductive reasoning. Intelligence tests are tests of general intellectual abilities. They measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability.There are also measures of specific cognitiveabilities, such as deductive reasoning, verbal comprehension, memory, and numericalability. You also might need to measure motor abilities, such as finger dexterity, manual dexterity, and (if hiring pilots) reaction time. Personality tests measure basic aspects of an applicant’s personality. You should be a bit cautious about personality tests, however. In some cases, the tests may be somewhat difficult to interpret. Legal challenges also may present difficulties. Finally, some doubt exists as to whether self-reporting on a personality test can predict performance correctly. Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned. Copyright © 2013 Pearson Education

1. Cognitive abilities Tests of general reasoning ability (intelligence) Test of specific mental abilities like memory and inductive reasoning. Copyright © 2013 Pearson Education

(i) Intelligence Tests Measure employees’ traits, i.e. memory, vocabulary, verbal fluency, numerical ability. Eg. Adult’s IQ Score. Eg. Stanford-Binet Test Copyright © 2013 Pearson Education

(ii) Specific Cognitive Abilities Measures of specific mental abilities; i.e. deductive reasoning, verbal comprehension, memory and numerical ability. Eg. Aptitude test. Copyright © 2013 Pearson Education

2. Tests of Motor and Physical Abilities Motor abilities; i.e. finger dexterity, manual dexterity, reaction time (hiring pilots).  Dexterity=the ability to do something well, usually as a result of experienceand training Eg. The Crawford Small Parts Dexterity Test – measure the speed and accuracy of simple judgment as well as the speed of finger, hand and arm movements. Copyright © 2013 Pearson Education

Physical Abilities Eg. Of physical abilities; Static strength (lifting weights) Dynamic strength (pull-ups) Body coordination and stamina (jumping rope) Copyright © 2013 Pearson Education

3. Tests of Personality and Interests A person’s cognitive and physical abilities alone seldom explain his/her job performance. Motivation and interpersonal skills factor are also very important. Personality Test Copyright © 2013 Pearson Education

What do personality tests measure? The “Big Five” - extraversion, emotional stability/neuroticism=illness, agreeableness, conscientiousness= work hard and careful, and openness to experience. Personality traits can be predictive, but there are caveats/limits. Personality tests measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation. Some of these tests are projective. The psychologist presents an ambiguous stimulus (like an inkblot or clouded picture) to the person. The person then reactsto it. Other personality tests are self-reported: applicants complete them themselves. Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism,agreeableness, conscientiousness, and openness to experience. Personality traits can be predictive since they do often correlate with job performance. Other traits correlate with occupational success. For example, extraversion correlates with success in sales and management jobs. However, there are three caveats. First, projective tests are hard to interpret. An expert must analyze the test taker’s interpretations and make conclusions about his or her personality. Second, personality tests can trigger legal challenges. Third, some dispute that self-reported personality tests predict performance at all. Be aware of what you expect from a personality test and the caveats associated with it. Nonetheless, personality tests can be a valuable source of information. Copyright © 2013 Pearson Education

The three caveats/limits of Personality Test First, projective tests are hard to interpret. An expert must analyze the test taker’s interpretations and make conclusions about his or her personality. Second, personality tests can trigger legal challenges. Third, some dispute that self-reported personality tests predict performance at all – low validity. But, it is a valuable source of information. Copyright © 2013 Pearson Education

4. Achievement Tests Measure what someone has learned. Also measure the applicant’s abilities. Eg.: A typing test. Copyright © 2013 Pearson Education

Review Cognitive abilities Motor skills Personality Interests IQ Specific mental abilities Motor skills Personality Interests Achievement “Big 5” Predicting Caveats Interpretation Legal issues Disputing value Cognitive tests include tests of general reasoning ability and tests of specific mental abilities.Intelligence tests are tests of general intellectual abilities. There are also measures of specific cognitiveabilities. You also might need to measure motor abilities such as reaction times for pilots. Personality tests measure basic aspects of an applicant’s personality. Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned. Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism,agreeableness, conscientiousness, and openness to experience. Personality traits do often correlate with job performance. Other traits correlate with occupational success. However, there are three caveats: proper interpretation, legal issues, and disputes over the value of self-reporting. Copyright © 2013 Pearson Education

Examples of work sample/simulation tests With work samples, you present candidates with situations representative of the jobfor which they’re applying, and evaluate their responses. Let’s discuss. Copyright © 2013 Pearson Education

Work samples and simulations Work Sampling Technique = A testing method based on measuring performance on actual basic job tasks. Basic procedure - to select a sample of several tasks crucial to performing the Copyright © 2013 Pearson Education

Work samples and simulations Situational judgment tests = designed to assess an applicant’s judgment regarding a situation encountered in the workplace. Eg. You are facing a project deadline and are concerned that you may not complete the project by the time is due. It is very important to your supervisor that you complete a project by the deadline. It is not possible to get anyone to help you with the work. Refer your text book for the options. Pg. 217. The basic procedure with work sampling is to select a sample of several tasks crucial to performing the job, and then test applicants on them. Situational judgment tests are personnel tests “…designed to assess an applicant’s judgment regarding a situation encountered in the workplace.”Situational judgment tests are effective and widely used. A management assessment center is a 2- to 3-day simulation in which 10 to 12 candidates perform realistic management tasks such as making presentations. The behaviors of the candidates are observed by experts who appraise each candidate’s leadership potential. Most experts view assessment centers as effective for selecting management candidates. However, they are quite costly in terms of money and time. Situational tests require examinees to respond to situations found on the job. Work sampling and some assessment center tasks fall into this category. Some of the testing may be video-based. Copyright © 2013 Pearson Education

Work samples and simulations Management Assessment Centers Computerized multimedia assessment Miniature job training and evaluation Realistic job previews Testing techniques for managers Employers increasingly use computerized multimedia candidate assessment tools. We discussed some of these tools when we considered computerized tests and management assessment centers. Like work sampling, miniature job training and evaluation tests applicants with actual samples of the job. Miniature job training assumes that a candidate who demonstrates the ability to perform a sample of job tasks will be able to learn and perform the job itself. Sometimes, a dose of realism makes the best screening tool. Describing all aspects of the job, the nature of the working environment and even the company culture helps create a self-screening tool. In general, applicants who receive realistic job previews are more likely to turn down job offers if they do not like what they understand the job to be. Applicants who accept are then more likely to stay on the job. You may find that, even in large companies, when it comes to screening employees, you’re on your own. The human resource department may work with you to design and administer screening tests. However, HR may be able to do little more than the recruiting, prescreening, background checks, and arrange for drugand physical exams. If HR is not given proper resources, you have even more reason to understand and use the information we have been discussing. Copyright © 2013 Pearson Education

Review Situational judgment Assessment centers Situational testing Computers Miniature job training Realistic job previews Managers and testing Situational judgment tests are used to assess the ability of a job candidate to react appropriately given a specific situation he or she will encounter on the job. Management assessment centers are used to determine the abilities of individuals to perform complex tasks. Typically, such centers are used for management and executive positions. While cost, time, and the use of professionally trained assessors are potential issues to consider, most experts agree they are worthwhile. Situational testing and video-based testing will involve situations that are presented to a job candidate. Such situations are realistic and typically derive from on-the-job situations. Computerized and web-based assessment allows speed and flexibility in the testing process. Miniature job training assumes a candidate can learn the job components and perform them quickly. Realistic job previews present the candidate with detailed and highly realistic information about the job and the environment. Realize, that as a manager, you may or may not have help from the HR department in selecting and assessing job candidates. Learning as much as possible about testing procedures will help in hiring the best candidates. Ultimately, the best candidates are usually the most productive, thus contributing to your department’s performance. Copyright © 2013 Pearson Education

Examples of some of the ethical and legal considerations in testing When hiring candidates, you will want the best ones to come to work for you. Checking backgrounds will help you make the right decisions. We will examine some of the ethical and legal implications to consider when hiring. Copyright © 2013 Pearson Education

Background Investigations Why perform checks? One of the easiest ways to avoid hiring mistakes is to check the candidate’s background thoroughly. Doing so is cheap and (if done right) useful. Two main reasons: verify the applicant’s information and to uncover damaging information. One of the easiest ways to avoid hiring mistakes is to check the candidate’s background thoroughly. Doing so is cheap and (if done right) useful. There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information. In terms of effectiveness, however, most managers don’t view references as very useful. This makes sense, given that few employers will talk freely about former employees for legal or ethical reasons. That is just the tip of the iceberg, however. Being sued for defamation is the real danger. First-line supervisors and managers, not just employers, are potentially at risk. As a rule, only authorized managers should provide information. Most employers at least try to verify an applicant’s position and salary with his or her current or former employer by phone. Others call the applicant’s current and previous supervisors for information. Copyright © 2013 Pearson Education

Background Investigations Applicants’ social postings – e.g. Facebook, Linkedin Pre-employment information services – e.g. databases The polygraph (lie detector) and honesty testing Graphology (handwriting analysis) More employers are Googling applicants or checking social networking sites. Googling is probably safe enough, but checking social networking sites raises legal issues. Your best strategy to protect your company (and yourself) is to advise a job candidate that your policies require performing such checks. The applicant, of course, may refuse. In that case, you may not wish to pursue a particular candidate further. Information services use databases to access information about matters such as workers’ compensation and credit histories. Before requesting reports, the employer must disclose to the applicant or employee that a report will be requested. The employer must certify to the reporting agency that the employer will comply with the federal and state legal requirements. Under federal law, the employer also must provide copies of the report to the applicant or employee if requested. Some firms still use the polygraph (or lie detector) for honesty testing, although the law severely restricts its use. Federal agencies (such as the FBI) may use such devices for hiring decisions. Paper-and-pencil tests also can be used to check for honesty. Graphology is the use of handwriting analysis to determine the writer’s basic personality traits. Graphology thus has some resemblance to projective personality tests, althoughgraphology’s validity is highly suspect Copyright © 2013 Pearson Education

Background Investigations “Human lie detectors” – e.g. pupils changing size (fear), irregular breathing (nervousness) Physical exams – e.g. medical exams Substance abuse – e.g. drugs screening While perhaps no more valid than graphology, some employers are using so-called “human lie detectors.” These are experts who claim to be able to identify lying just by watching candidates. Once the employer extends the person a job offer, a medical exam is often the next step in the selection process. In addition, many employers conduct drug screenings. The most common practice is to test candidates just before they’re formally hired. Some companies advise the candidate that a job offer is contingent upon successful completion of a drug screening test. Drug testing, while ubiquitous, is neither as simple nor effective as it might first appear since no drug test is foolproof. Also, tests for drugs only show whether drug residues are present, not if they will impact the individual in the workplace. Drug testing raises legal issues, too. Several federal (and manystate) laws affect workplace drug testing. Employees hired in the United States must prove they are eligible to work in the United States. Employers should ask a person they’re about to hire whether he or she is a U.S. citizen or an alien lawfully authorized to work in the United States. Most employers also use their applicant tracking systems (ATS) or Human Resource Information Systems (HRIS) to improve productivity. In some cases, an ATS is used to “knock out” applicants who don’t meet minimum, nonnegotiable job requirements. Employers also use ATS to test and screen applicants online. This includes skills testing (in accounting, for instance), cognitive skills testing and even psychological testing. Copyright © 2013 Pearson Education

Review Why perform checks? Effectiveness Legal dangers How to check Social postings Information services There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information. You, as a manager must be concerned with potential defamation and privacy issues. Remember, checking social networking sites raises legal issues. Information services use databases to access information. Copyright © 2013 Pearson Education