1. 6 Employee Testing and Selection
The purpose of Chapter 6 is to explain how to use various tools to select the best candidates for the job. The main topics we’ll cover include selection, testing, background and reference checks, ethical and legal questions, types of tests, and work samples and simulations.

2. Learning Objectives
Answer the question: Why is it important to test and select employees?
Explain what is meant by reliability and validity.
List and briefly describe the basic categories of selection tests, with
examples.
After studying this chapter, you will be able to:
1. Answer the question: Why is it important to test and select employees?
2. Explain what is meant by reliability and validity.
3. List and briefly describe the basic categories of selection tests, with
examples.

3. Learning Objectives
Explain how to use two work simulations for selection.
Describe four ways to improve an employer’s background checking
process.
After studying this chapter, you will be able to:
4. Explain how to use two work simulations for selection.
5. Describe four ways to improve an employer’s background checking
process.

4. Why Employee Selection Is Important
Person and job/organization fit (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.
Performance (employees with the right skills will perform better for the company.)
Cost (it’s costly to recruit and hire employees).
Legal obligations it’s important because mismanaging hiring has legal consequences.
First, employees with the right skills will perform better for you and the company.
Second, it is important because it’s costly to recruit and hire employees. Financial services firm KeyBank knew it needed a better way to screen and select tellers and call-center employees. The company calculated it cost about $10,000 to select and train an employee, but it was losing 13% of new tellers and call-center employees within the first 90 days. That turnover number dropped to 4% after KeyBank implemented a virtual job tryout candidate assessment screening tool. “We calculated a $1.7 million cost savings in teller turnover in one year, simply by making better hiring decisions, reducing training costs and increasing quality of hires,” said the firm’s human resources director.
Third, it’s important because mismanaging hiring has legal 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.

5. Avoiding Negligent Hiring Claims
Human Resources Management 12e Gary Dessler
Avoiding Negligent Hiring Claims
negligent hiring : hiring workers with questionable backgrounds without proper safeguards.
Carefully scrutinize information on employment applications.
Get written authorization for reference checks, and check references.
Save all records and information about the applicant.
Reject applicants for false statements or conviction records for offenses related to the job.
Balance the applicant’s privacy rights with others’ “need to know.”
Take immediate disciplinary action if problems arise.
Avoiding negligent hiring claims means taking “reasonable steps and actions” to avoid hiring employees with criminal records or other problems who commit crimes or other acts for which the employer can be held liable.
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6. 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.
Outback Steakhouse has used preemployment tests almost from when the company started. The testing
seems successful. While annual turnover rates for hourly employees may reach 200% in the restaurant
industry, Outback’s turnover ranges from 40% to 60%. Outback wants employees who are highly social,
meticulous, sympathetic, and adaptable. They use a personality assessment test to screen out applicants who
don’t fit the Outback culture. This test is part of a three-step preemployment screening process. Applicants
take the test, and managers then compare the candidates’ results to the profile for Outback Steakhouse
employees. Those who score low on certain traits (like compassion) don’t move to the next step. Those who
score high are interviewed by two managers, who ask behavioral questions such as “What would you do if
a customer asked for a dish we don’t have?”

7. Basic Testing Concepts
Human Resources Management 12e Gary Dessler
Basic Testing Concepts
Reliability
Describes the consistency of scores obtained by the same person when retested with the identical or alternate forms of the same test.
Are test results stable over time?
Validity
The accuracy with which a test, interview, and so on measures what it is supposed to be measuring or fulfils the function it was designed to fill.
Does the test actually measure what it is intended to measure?
Selection is important , we’ll start with testing. 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. Few things illustrate evidence-based HR—the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on—as do checking for reliability and validity.
Teaching Tip: The difference between reliability and validity is sometimes difficult for students to understand. Explain that if 100 accident-prone, careless applicants took the same test and scored well on it, the test would be reliable because the results are consistent. However, if the purpose of the test was to identify safety conscious applicants, it would not be valid as a test because it does not predict good safety performance on the job, the very thing it was intended to measure.
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8. Reliability You can measure reliability in several ways.
One is to administer a test to a group of people one day, re-administer the same test several days later to the same group, and then correlate the first set of scores with the second (test-retest reliability estimates).
Or you could administer a test and then administer what experts believe to be an equivalent test later; this would be an equivalent or alternate form estimate.
Or, compare the test taker's answers to certain questions on the test with his or her answers to a separate set of questions on the same test aimed at measuring the same thing. (An internal comparison estimate measures a test's internal consistency)

9. Types of Validity
1.Criterion validity shows that scores on the test (predictors) are related to job performance. It involves demonstrating statistically a relationship between scores on a selection procedure and the job performance.
2.Content validity shows that the test contains a fair sample of the tasks and skills actually needed for the job in question.
3.Construct validity involves demonstrating that (a) a selection procedure measures a construct (something believed to be an underlying human trait or characteristic, such as honesty) and (b) the construct is important for successful job performance.

10. Evidence-Based HR: How to Validate a Test
Analyze
Choose
Administer
Relate
Cross-validate
First, analyze the job and write job descriptions and job specifications. Your goal is to specify the human traits and skills (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 into a test battery.
One option is to administer the tests to employees currently on the job. You then compare their 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 these applicants using only existing selection techniques (such as interviews). You would not use the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores.
Next, determine if there is a significant relationship between test scores (the predictor) and performance (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.

11. Human Resources Management 12e Gary Dessler
How to Validate a Test ?
Analyze the Job: write job descriptions and job specifications.
Choose the Tests: choose tests that measure the attributes (predictors) important for job success.
Administer the Test: administer the test selected to old or new employees for concurrent and predictive validation. (With concurrent validation, the test scores of current employees are compared with their current job performance. The disadvantage is that current employees may not be representative of new applicants because current employees have already had on-the-job training).
Predictive validation is a more dependable way to validate a test than concurrent validation, which is the other method. With predictive validation, a test is administered to applicants before hiring. Applicants are hired using only existing selection techniques, not the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores.
4. Relate Your Test Scores and Criteria: through a correlation analysis, which shows the degree of statistical relationship between (1) scores on the test (2) job performance (scores versus actual performance, expectancy chart).
5. Cross-Validate and Revalidate: repeat Steps 3 and 4 with a different sample.
5 Steps in Test Validation:
Anyone using tests (or test results) should know something about validation. The validation process consists of the five steps listed in the slide.
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12. Test Takers’ Individual Rights and Test Security
Human Resources Management 12e Gary Dessler
Test Takers’ Individual Rights and Test Security
test takers have the following rights:
The right to the confidentiality of test results.
The right to informed consent regarding use of these results.
The right to expect that only people qualified to interpret the scores will have access to them, or that sufficient information will accompany the scores to ensure their appropriate interpretation.
The right to expect the test is fair to all. For example, no one taking it should have prior access to the questions or answers.
Test takers have rights to privacy and feedback under the American Psychological Association’s (APA) standard for educational and psychological tests; these guide psychologists but are not legally enforceable.
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13. How Do Employers Use Tests at Work?
Human Resources Management 12e Gary Dessler
How Do Employers Use Tests at Work?
Major Types of Tests
Basic skills tests
Job skills tests
Psychological tests
Why Use Testing?
Increased work demands = more testing
Screen out bad or dishonest employees
Reduce turnover by personality profiling
Firms test applicants for basic skills (defined as the ability to read instructions, write reports, and do arithmetic adequate to perform common workplace tasks). Many others require employees to take job skills tests and require some form of psychological measurement. Employers don’t use tests just to find good employees, but also to screen out bad ones.
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14. Human Resources Management 12e Gary Dessler
Types of Tests
Cognitive abilities
Motor and physical abilities
Personality and interests
What Different Tests Measure
Current achievement
4 different tests measure
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15. Types of Tests
Cognitive Abilities: cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning.
Intelligence Tests (IQ) are tests of general intellectual abilities ranging from memory, vocabulary, verbal fluency to numerical ability.
Specific Cognitive Abilities (aptitude) include inductive and deductive reasoning, verbal comprehension, memory, and numerical ability.

16. Types of Tests- Cont’d
B. Tests of Motor and Physical Abilities: Employers may use various tests to measure such motor abilities as finger dexterity, manual dexterity, and reaction time. They may also want to measure such physical abilities as static strength, dynamic strength, body coordination and stamina.

17. Human Resources Management 12e Gary Dessler
Types of Tests- Cont’d
C. Measuring Personality and Interests: personality tests measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation.
The "Big Five" - Industrial psychologists emphasize five personality dimensions as they apply to personnel testing: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience.
D. Achievement Tests : Achievement tests measure what someone has learned Most of the tests you take in school are achievement tests. They measure your job knowledge in areas like economics , marketing, or human resources . Achievement tests are also popular at work.
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19. Testing
Test Scoring – may be automated and done by the employer, or professionally scored and interpreted by psychologists outside the firm. Computerized – Online Testing - is increasing replacing pencil-and-paper and manual tests.

20. Work Samples and Simulations
Human Resources Management 12e Gary Dessler
Work Samples and Simulations
Work samples
Management assessment centers
situational testing
Measuring Work Performance Directly
Miniature job training and evaluation
With work samples, examinees are presented with situations representative of the job for which they’re applying, and are evaluated on their responses.
Experts consider these (and simulations, like the assessment centers we also discuss in this section) to be tests. However, they differ from most test forms, because they measure job performance directly.
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21. Work Samples and Simulations
Human Resources Management 12e Gary Dessler
Work Samples and Simulations
Work Sampling for Employee Selection
Rationale for Work Sampling – Work sampling technique measures how a candidate actually performs some of the job’s basic tasks making it harder for applicants to fake answers. This method tends to be fairer and exhibit better validity than test designed to predict performance.
simulation , imitations , models
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22. Human Resources Management 12e Gary Dessler
- Cont’d
B. Management Assessment Centers Provide simulations in which candidates perform realistic management tasks, under the observation of experts who appraise each candidate’s potential. Simulated exercises include in-basket, leaderless group discussion, management games, individual presentations, objective tests, and interviews. Effectiveness – Most experts view assessment centers as effective for selecting and promoting management candidates, despite the extra cost to develop the centers.
Management Assessment Centers
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23. Human Resources Management 12e Gary Dessler
- Cont’d
C. Video-Based Situational Testing typically presents the candidate with several scenarios, each followed by a multiple-choice question. D. The Miniature Job Training and Evaluation Approach involves training candidates to perform a sample of job tasks, and evaluating their performance. E. Realistic Job Previews – Being explicit about work schedules, preferences and other job standards at the point of interview can help reduce turnover later.
When You’re on Your Own: HR for Line Managers and Entrepreneurs. Employee Testing and Selection. – In many firms, the HR department does little more than preliminary prescreening and followup with background checks, drug, and physical exams. Managers who want to screen some of their own job applicants more formally can devise and use screening tools with obvious face validity. Steps should be taken to keep within the guidelines discussed in this chapter. There are a number of tools available that are easy to administer.
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24. Background Investigations and Other Selection Methods
Human Resources Management 12e Gary Dessler
Background Investigations and Other Selection Methods
Investigations and Checks
Reference checks
Background employment checks
Criminal records
Driving records
Credit checks
Others ( honesty testing, graphology , ..etc)
How deeply you research ?
Depends on the position you seek to fill
It is advisable to periodically check
Testing is only one part of selection process , others are …
To avoid negligent hiring mistakes, employers must check the candidate’s background thoroughly.
Graphology
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25. Human Resources Management 12e Gary Dessler
- Cont’d
Why? ( Reasons for Background Investigations- Reference Checks)
To verify factual information provided by applicants
To uncover damaging information; such as , criminal records
Benefit of Background Investigations & Reference Checks
By conducting proper and thorough background checks losses might be prevented.
factual information
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26. Background Investigations and Reference Checks
Human Resources Management 12e Gary Dessler
Background Investigations and Reference Checks
Former Employers
Current Supervisors
Written References
Social Networking Sites
Commercial Credit Rating Companies
Sources of Information
Most employers check and verify the job applicant’s background information and references. Commonly verified data include legal eligibility for employment (in compliance with immigration laws), dates of prior employment, military service (including discharge status), education, identification (including date of birth and address to confirm identity), county criminal records (current residence, last residence), motor vehicle record, credit, licensing verification, Social Security number, and reference check.
Types of Background Checks – Typically the applicant’s current and/or former position and salary are verified. Commercial credit rating companies and other services can provide information about credit standing, criminal, employment and educational historic. Employers often check social networking site postings online.
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27. Background Investigations and Reference Checks
Effectiveness
Managers prefer telephone references over written references, because it allows a more candid assessment and provides a more personal exchange. In fact reference letters ranked the lowest of selection tools. The ranking is as following:
Interview
Application form
Accident record
Oral referral
Aptitude and achievement tests
Psychological tests
Reference letters

28. The Polygraph and Honesty Testing
Human Resources Management 12e Gary Dessler
The Polygraph and Honesty Testing
Polygraph : lie detector for honesty testing , the polygraph is a device that measures physiological changes like increased perspiration. The assumption is that such changes reflect changes in emotional state that accompany lying.
Local, state and federal government employers can continue to use the tests ( ex: FBI). However, many local and state government employers are restricted under state laws.
Perspiration
interstate commerce
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29. Human Resources Management 12e Gary Dessler
Other Tests
Paper-and-Pencil Tests – Paper-and-pencil honesty tests are psychological tests designed to predict job applicants’ proneness to dishonesty and other forms of counter-productive behavior.
Graphology (handwriting analysis) refers to the use of handwriting analysis to determine the writer’s basic personality traits. Graphology has some resemblance to projective personality tests, although graphology’s validity is highly suspect.
Physical Exams – Once an offer is made and the person is hired, a medical exam is usually the next step in the selection process (although it may also occur after the new employee starts work).
In Graphology , the handwriting analyst studies an applicant’s handwriting and signature to discover the person’s needs , desires , and psychological makeup
Studies suggest it is generally not valid
Proneness
counter-productive behavior
Resemblance , similarity,
Projective
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30. Physical Examinations
Human Resources Management 12e Gary Dessler
Physical Examinations
Reasons for preemployment medical examinations:
To verify that the applicant meets the physical requirements of the position.
To discover any medical limitations to be taken into account in placing the applicant.
To establish a record and baseline of the applicant’s health for future insurance or compensation claims.
To reduce absenteeism and accidents.
To detect communicable diseases that may be unknown to the applicant.
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31. Human Resources Management 12e Gary Dessler
Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening Systems (ATS)
“Knock out” applicants who do not meet job requirements
Allows employers to extensively test and screen applicants online
Benefits of Applicant Tracking Systems
Can match “hidden talents” of applicants to available openings
The applicant tracking systems do more than compile (collect ) incoming Web-based résumés and track applicants during the hiring process. They should also help with the testing and screening.
Automated Applicant Tracking and Screening Systems
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32. Human Resources Management 12e Gary Dessler
K E Y T E R M S
reliability
test validity
criterion validity
content validity
expectancy chart
interest inventory
work samples
work sampling technique
management assessment center
situational test
video-based simulation
miniature job training and evaluation
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33. Copyright