Selection and Placement Chapter 6 Selection and Placement Chapter 6 provides ways to minimize errors in employee selection and placement, and in doing so improve the organization's competitive position. The purpose of this chapter is to familiarize you with ways to minimize errors in employee selection and placement and, in doing so, improve your company’s competitive position. The chapter first focuses on five standards that should be met by any selection method. The chapter then evaluates several common selection methods according to those standards. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives Establish basic scientific properties of personnel selection methods, including reliability, validity and generalizability. Discuss how particular characteristics of job, organization or applicant affect the utility of any test. Describe government’s role in personnel selection decisions, particularly in areas of constitutional law, federal laws, executive orders and judicial precedent. List common methods used in selecting HR. Describe the degree to which common methods used in selecting HR meet the demands of reliability, validity, generalizability, utility and legality. 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 HR. 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

5 Evaluation Selection Method Standards Reliability Validity Generalizability Utility Legality Chapter 6 provides ways to minimize errors in employee selection and placement, and in doing so improve the organization's competitive position. Personnel selection is the process by which companies decide who will or will not be allowed into organizations. Several generic standards should be met in any selection process. We focus on five: (1) reliability, (2) validity, (3) generalizability, (4) utility, and (5) legality. 6-3

Reliability Reliability is the degree to which a measure of physical or cognitive abilities or traits is free from random error. 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 is knowing how scores on the measure at one time relate to scores on the same measure at another time. Reliability is the degree to which a measure is free from random error. If a measure of some supposedly stable characteristic such as intelligence is reliable, then the score a person receives based on that measure will be consistent over time and in different contexts. Correlation coefficient is a measure of the degree to which two sets of numbers are related. The correlation coefficient expresses the strength of the relationship in numerical form. True Scores and the Reliability of Measurements—reliability is demonstrated by measuring height at different times. Even though height is supposedly a stable characteristic, slightly different results are generated every time height is measured. Standards for Reliability—the more reliable the measure, the more likely decisions can be made on score differences. 6-4

Validity Validity is the extent to which a performance measure assesses all and only the relevant aspects of job performance. Criterion-related validation is a method of establishing validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores. The types include: Predictive validation Concurrent validation 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 personal selection methods by showing a substantial correlation between test scores and job-performance scores. There are two types of criterion‑related validity: Predictive validation is a criterion-related validity study that seeks to establish an empirical relationship between applicants’ test scores and their eventual performance on the job. Concurrent validation is a criterion-related validity study in which a test is administered to all the people currently on the job and then correlating test scores with existing measures of each person’s performance. 6-5

Criterion-Related Validity Predictive Concurrent Measure Performance of Those Hired Test Existing Employees Measure Their Performance Test Applicants Predictive validation is superior to concurrent validation for three reasons: (a) job applicants are typically more motivated to perform well on the tests than are current employees, (b) current employees have learned many things on the job that applicants have not yet learned, (c) current employees tend to be homogeneous. TIME TIME 6-6

Concurrent Validation Measure all current job incumbents on attribute Measure all current job incumbents’ performance Obtain correlation between these two sets of numbers This shows a graphic depiction of concurrent and predictive validation designs. Measure all current job incumbents on attribute, then measure all current job incumbents’ performance to obtain correlation between these two sets of numbers.

Predictive Validation Obtain correlation between measurements. 2. Hire applicants and reject others. 3. Wait. 4. Measure all newly hired job incumbents’ performance. 1. Measure all job applicants on attribute. This is a graphic depiction of concurrent and predictive validation designs. For predictive validation, to obtain correlation between measurements: Measure all job applicants on attribute. 2. Hire applicants and reject others. 3. Wait. 4. Measure all newly hired job incumbents’ performance.

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 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. A test that is content valid exposes the job applicant to situations that are likely to occur on the job, and then tests whether the applicant currently has sufficient knowledge, skill, or ability to handle such situations. There are two limitations to content validation: (a) the person who is hired must have the knowledge, skills, or abilities at the time he or she is hired and (b) subjective judgment plays such a large role in content validation.

Generalizability Generalizability - degree to which the validity of a selection method established in one context extends to other contexts. 3 Contexts: different situations (jobs or organizations) different samples of people different time periods Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts. Validity generalization stands as an alternative for validating selection methods for companies that cannot employ criterion-related or content validation. 6-10

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. Utility is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations. Utility is impacted by reliability, validity, and generalizability. Other factors will influence utility even when the latter is constant. For example, the selection ratio, which is the percentage of people tested versus the total number of applicants, will impact utility as well as the number of people selected, rate of employee turnover, and level of performance among those who leave. 6-11

Legality All selection methods must conform to existing laws and legal precedents. Three acts form the basis for a majority of suits filed by job applicants: Civil Rights Act of 1991 and 1964 Age Discrimination in Employment Act of 1967 Americans with Disabilities Act of 1991 Legality—All selection methods must conform to existing laws and legal precedents. Three primary federal laws form the basis for a majority of the suits filed by job applicants. First, the Civil Rights Act of 1991, an extension of the Civil Rights Act of 1964, protects individuals from discrimination based on race, color, sex, religion, and national origin with respect to hiring as well as compensation and working conditions. Second, Age Discrimination in Employment Act of 1967 if any neutral-appearing practice happens to have adverse impact on those over 40, the burden of proof shifts to the employer, who must show business necessity to avoid a guilty. Third, ADA of 1991 protects individuals with physical and mental disabilities (or with a history of the same), and requires that employers make “reasonable accommodation” to disabled individuals whose handicaps may prevent them from performing essential functions of the job as currently designed. “Reasonable accommodation” could include restructuring jobs, modifying work schedules, making facilities accessible, providing readers, or modifying equipment. 6-12

Civil 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: Establishes employers' explicit obligation to establish neutral-appearing selection method. Allows a jury to decide punitive damages. Explicitly prohibits granting preferential treatment to minority groups. The Civil Rights Act of 1991 protects individuals from discrimination with respect to hiring as well as compensation and working conditions. The Civil Rights Act of 1991 is an extension of the Civil Rights Act 1964. The 1991 act differs from the 1964 act in three areas: It establishes employers' explicit obligation to establish neutral-appearing selection method. It allows a jury to decide punitive damages. It explicitly prohibits the granting of preferential treatment to minority groups. Most litigation is based on gender and race. 6-13

Age Discrimination in Employment Act of 1967 Covers over age 40 individuals. No protection for younger workers. Outlaws almost all “mandatory retirement” programs. Age Discrimination in Employment Act of 1967 covers over age 40 individuals. No protection for younger workers. Outlaws almost all “mandatory retirement” programs.(company policies that dictate that everyone who reaches a set age must retire). 6-14

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. Examples of reasonable accommodations include restructuring jobs, modifying work schedules, making facilities accessible, providing readers, or modifying equipment. An employer need not make accommodations that cause undue hardship such as undue cost or danger to the safety of other employees. The ADA does not require an organization to hire someone whose disability prevents him or her from performing either critical or routine aspects of the job nor does it require accommodations that would cause “undue hardship.” 6-15

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. Office of Federal Contract Compliance and Procedures (OFCCP) issues guidelines and helps companies comply. Executive Order 11246 parallels the Civil Rights Act of 1964 but goes beyond it by: requiring affirmative action to hire qualified protected group applicants, and allowing the government to suspend all business with a contractor while an investigation is going on. Not only do the executive orders prohibit discrimination, they actually mandate that employers take affirmative action to hire qualified minority applicants. The executive branch of the government also regulates hiring decisions through the use of executive orders. 6-16

Types of Selection Methods Interviews Honesty & Drug Tests References & Biographical Data Work Samples HR JOBS Physical Ability Tests Types of selection methods used to assess a person for employment include interviews, honesty tests and drug tests, work samples, personality inventories, cognitive ability tests, physical ability tests, and references and biographical data. Personality Inventories Cognitive Ability Tests 6-17

Interviews Selection interviews-a dialogue initiated by one or more persons to gather information and evaluate the 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. Interviews are the most widely used selection method, although research suggests they can be unreliable, low in validity, and biased against a number of groups. Selection interviews are defined as a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment. The utility of an interview can be increased by the following suggestions: Interviews should be structured, standardized, and focused on goals oriented to skills and observable behaviors. Interviewers should plan to come out of each interview with a quantitative rating on a small number of dimensions that are observable (like interpersonal style or ability to express oneself) and avoid ratings of abilities that may be better measured by tests (like intelligence). Interviewers should also have a structured note-taking system that will aid recall when it comes to satisfying the ratings. 6-18

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 Motivating employees Resolving conflict Overcoming resistance to change, etc. A situational interview is an interview procedure where applicants are confronted with specific issues, questions, or problems that are likely to arise on the job. They consist of experience-based questions and future-oriented questions . Some items are “experience-based” and require the applicant to reveal an actual experience he or she had in the past when confronting the situation. Other items are “future-oriented” and ask what the person is likely to do when confronting a certain hypothetical situation in the future. 6-19

Experience-Based Situational Interview Items Table 6.2 Motivating employees: “Think about an instance when you had to motivate an employee to perform a task that he or she disliked but that you needed to have done. How did you handle that situation?” Resolving conflict: “What was the biggest difference of opinion you ever had with a co-worker? How did you resolve that situation?” Overcoming resistance to change: “What was the hardest change you ever had to bring about in a past job, and what did you do to get the people around you to change their thoughts or behaviors?” Experience based questions require the applicant to reveal an actual experience he or she had in the past when confronting the situation. Research suggests that these types of items can both show validity but that experience-based items often outperform future-oriented items. Experience-based items also appear to reduce some forms of impression management such as ingratiation better than future-oriented items.

Future Oriented Situational Interview Items Table 6.2 Motivating employees: Suppose you were working with an employee who you knew greatly disliked performing a particular task. You needed to get this task completed, however, and this person was the only one available to do it. What would you do to motivate that person?” Resolving conflict: ““Imagine that you and a co-worker disagree about the best way to handle an absenteeism problem with another member of your team. How would you resolve that situation?” Overcoming resistance to change: “Suppose you had an idea for change in work procedures that would enhance quality, but some members of your work group were hesitant to make the change. What would you do in that situation?” “Future-oriented” questions ask what the person is likely to do when confronting a certain hypothetical situation in the future.

Other Selection Methods Individuals 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. muscular tension, power, and endurance cardiovascular endurance flexibility balance coordination Individuals should manage their digital identity the same way they manage their résumé. Other selection methods such as references, biographical data, and applications that gather background information on candidate are, at best, weak predictors of future job success. Typically, references are very positive since only those who the applicants know will give them a good reference are asked to do so. Many suits have been filed against past employers’ revealing too much information beyond job title and years of service. The biggest concern with the use of biographical data is that applicants who supply the information may be motivated to misrepresent themselves. Physical ability tests are relevant for predicting job performance, occupational injuries and disabilities (if the physical ability is essential to performing the job and if it is mentioned prominently enough in the job description). Criterion‑related validities tend to be quite strong, although adverse impact on the disabled and women is highly possible. For example, roughly two-thirds of all males score higher than the highest-scoring female on muscular tension tests. 6-22

Other Selection Methods A cognitive ability test differentiates individuals based on mental rather than physical capacities. Commonly assessed abilities: verbal comprehension quantitative ability reasoning ability Personality inventories categorize individuals by personality characteristics. Work samples simulate a job in miniaturized form. One of the major drawbacks to these tests is that they typically have adverse impacts on some minority groups. Indeed, the size of the differences is so large that some have advocated abandoning these types of tests for making decisions regarding who will be accepted for certain schools or jobs. Verbal comprehension refers to a person’s capacity to understand and use written and spoken language. Quantitative ability concerns the speed and accuracy at which one can solve arithmetic problems. Reasoning ability refers to a person’s capacity to invent solutions to many diverse problems. Common dimensions assessed in a personality inventory are extroversion, adjustment, agreeableness, conscientiousness, and inquisitiveness. Work samples are job‑specific and tend to be high in criterion‑related and content validity and low in adverse impact. 6-23

Cognitive Ability Tests 3 Dimensions Cognitive Ability Tests: Verbal Comprehension - a person’s capacity to understand and use written and spoken language. Quantitative Ability - speed and accuracy with which one can solve arithmetic problems. Reasoning Ability - a person’s capacity to invent solutions to diverse problems. 3 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. 6-24

Physical Ability Tests Two Questions to Ask: Is physical ability essential to perform the job? Is it mentioned prominently enough in the job description? Tests Measure: muscular power and endurance cardiovascular endurance flexibility balance coordination Physical ability tests- tests of physical abilities may be relevant not only to predicting performance but to predicting occupational injuries and disabilities as well for many jobs that require physical or psychomotor abilities. Two Questions to Ask: Is physical ability essential to perform the job? Is it mentioned prominently enough in the job description? Tests measure: muscular power and endurance cardiovascular endurance flexibility balance coordination.

Big 5 Dimensions of Personality Inventories Inquisitiveness Extroversion 5 Adjustment There are five major dimensions of personality, known as “the Big Five”: (1) extroversion, (2) adjustment, (3) agreeableness, (4) conscientiousness, and (5) inquisitiveness. Each of these have a corresponding list of adjectives that fit each dimension: 1. Extroversion: Sociable, gregarious, assertive, talkative, expressive 2. Adjustment: Emotionally stable, non-depressed, secure, content 3. Agreeableness: Courteous, trusting, good-natured, tolerant, cooperative, forgiving 4. Conscientiousness: Dependable, organized, persevering, thorough, achievement-oriented 5. Inquisitiveness: Curious, imaginative, artistically sensitive, broad-minded, playful Agreeableness Conscientiousness 6-26

Emotional Intelligence Self-regulation Self-awareness Self-motivation Empathy “Emotional intelligence” is also important in team contexts and has been used to describe people who are especially effective in fluid and socially intensive contexts. Emotional intelligence is traditionally conceived of as having five aspects: self-awareness (knowledge of one’s strengths and weaknesses), self-regulation (the ability to keep disruptive emotions in check), self-motivation (how to motivate oneself and persevere in the face of obstacles), empathy (the ability to sense and read emotions in others), and social skills (the ability to manage the emotions of other people). Daniel Goleman noted that “in the new workplace, with its emphasis on flexibility, teams and a strong customer orientation, this crucial set of emotional competencies is becoming increasingly essential for excellence in every job in every part of the world.” Social Skills 6-27

Work-Sample Tests Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs. Assessment center-is a process in which multiple raters evaluate employees’ performance on exercises. Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs in the simulated job. The degree of fidelity in work samples can vary greatly. Assessment center-is a process in which multiple raters evaluate employees’ performance on a number of exercises. 6-28

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. In 1990, the Office of Technology and Assessment released a report on the validity of paper‑and‑pencil honesty tests. The conclusion of the report was that existing research was inconclusive to determine the effectiveness of the tests. Paper-and-pencil honesty tests come in a number of different forms. Some directly emphasize questions dealing with past theft admissions or associations with people who stole from employers. Other items are less direct and tap more basic traits such as social conformity, conscientiousness, or emotional stability. Tests commonly gauge attitudes and perceptions about professional behavior. The tests predict the level of risk of theft for employees. 6-29

Drug Tests Drug-use tests tend to be reliable and valid. Major controversies about 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 with safety hazards associated with failure to perform. Test results should be reported to applicants, who should have an avenue to appeal. Drug‑use tests tend to be reliable and valid, particularly when the “screening tests" are followed up with more expensive “confirmation” test. The major controversies about drug tests includes: 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. Employers considering the use of drug tests would be well advised to make sure that their drug-testing programs conform to some general rules. 6-30

Summary of Selection Methods Interviews Honesty & Drug Tests References & Biographical Data Work Samples HR JOBS Physical Ability Tests Illustrates a summary of personnel selection methods used to assess a person for employment including interviews, honesty tests and drug tests, work samples, personality inventories, cognitive ability tests, physical ability tests, and references and biographical data based on reliability, validity, generalizability, utility and legality. Cognitive Ability Tests Personality Inventories

Summary Job applicants and an organization’s viability are affected by decisions regarding who is accepted and rejected for positions. Five standards should conform: reliability, validity, generalizability, utility and legality. Managerial assessment centers use many different forms of tests over a two or three day period to learn as much as possible about candidates for important executive positions. Validity associated with judicious use of multiple tests is higher than for tests used in isolation. The lives of job applicants and the viability of organizations are strongly affected by decisions regarding who is accepted and rejected for positions. there is no need to use only one type of test for any one job. These are some of the most important decisions an organization is likely to make. There are numerous alternatives for making such decisions, many of which have been validated and supported by years of research, as highlighted in this chapter. Five standards should conform: reliability, validity, generalizability, utility and legality. Managerial assessment centers use many different forms of tests over a two or three day period to learn as much as possible about candidates for important executive positions. Validity associated with judicious use of multiple tests is higher than for tests used in isolation. 6-32