MGTO 324 Workshop 6: Criterion Validity. Multiple Regression Analysis Background You are an HR manager of an insurance firm. The most salient culture.

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Presentation transcript:

MGTO 324 Workshop 6: Criterion Validity

Multiple Regression Analysis Background You are an HR manager of an insurance firm. The most salient culture in this organization is that they want their insurance agents to be creative in helping their clients solve their financial problems. calm and patient in listening and understanding the clients’ needs. Supervisors gave an overall performance rating for each agent according to the above criteria. Suppose you used two personality scales, Openness to Experience and Emotional Stability, to predict job performance. You choose to measure these two personality traits because they are theoretically related to job performance in this context. You collected the personality data two years ago and the job performance ratings this year.

Criterion-related validity Try to show criterion-related evidence of the two personality scales In addition, try to show the value of the personality tests by assessing the incremental validity of each scale

Simple correlation

Scatter Plot

r =.526; p <.05

r =.53; p <.05

Linear Regression

PR = x OE; Z(PR) =.526 x Z(OE) This equation accounts for 27.6% of the PR’s variance, and it is significantly better than 0%.

r =.526; p <.05 Z(PR) =.526 x Z(OE)

Multiple regression Equal to linear regression, except that more than one predictor in the equation PR = Constant + B(OP) x OP + B(ES) x ES

Interpretation OE and ES are both significant predictors. The explained unique portion of the PR’s variance. That is, their predictions could not be replaced by other predictors in the equation, which shows the incremental validity.

Multiple Regression Analysis Background You are an HR manager of a firm. There are two performance criteria Salary increase after the first year’s performance appraisal Quit intention After reviewing some leading research articles in Journal of Applied Psychology, Personnel Psychology, and Academy of Management Journal, you are thinking that perhaps their job satisfaction and job commitment to their previous jobs (i.e., before joining your organization) may predict these two variables You also have an intuition that the outcome criteria should be related to one’s Extraversion You measured their job satisfaction, job commitment, and Extroversion before joining your firm You got the two criteria data one year after performance appraisal

Assignment Task Show the criterion validity of each predictor Show the incremental validity of each predictor Comments on the usefulness of each predictor Comments on any interesting observation