1. Personnel decisions
Study Unit 4

2. introduction developing assessment instruments
Industrial psychologists contributes to the process of decision making regarding employees by:
developing assessment instruments
researching the suitability of the
instruments and
explaining the consequences of the way
in which the instrument is used

3. Personnel decisions in the new millennium :
Influenced by five major changes:
Speed of technological change
Growing reliance on the use of teams to accomplish work
Changes in communication technology
Most large corporations are now global in nature
We need to be sensitive to differing cultural
values and their effect on individuals and
organisations

4. The quest for a good match between qualifications of people and demands of work is becoming all the more daunting...

5. Recruitment (the process of attracting people to apply for a job):
Sometimes recent college graduates (who have the willingness and ability to learn new things) are preferred (by organisations) over individuals with work experience
Experienced applicants are regarded as having a stronger work ethic, more realistic expectations
Highly attractive employers: fewer applicants decline their offers; less demanding jobs are filled with less selectivity
Extent to which applicants consider company to be desirable employer: “social validity”
Applicants’ reactions to assessment: personal and highly emotional
The concept of the recruiting yield pyramid should always be taken into consideration

6. Affirmative Action
Social policy aimed at reducing the effects of prior discrimination. Requirement under the Employment Equity Act 55 (1998) to enforce affirmative action
Four goals:
To correct present inequities
To compensate for past inequities
To provide role models
To promote diversity

7. Model of personnel decisions:
See Figure 5.3 p. 130 in your textbooks

8. Regression analysis:
Predicting performance on a criterion on the basis of the score obtained on a single predictor
Figure 5.4 (p.131 in your textbooks):
The straight line indicates the “average” relationship/correlation between the scores on the predictor (for example, test scores obtained during selection on one test) and scores on the criterion (for example, performance appraisal scores)

9. multiple regression analysis:
Prediction of performance on a criterion on the basis of the scores obtained on two or more predictors

10. Validity generalisation:
Nature: a predictor’s applicability is much wider than the situation in which it has been empirically determined
a single “true” relationship between a “test”/predictor and work performance exists
For example: A test is found valid for hiring secretaries in a company. If that same test is found useful in hiring secretaries in another company, we say its validity has generalised.

11. Selection of applicants viewed from a personnel psychology angle:
Three main factors which determine the quality of newly-appointed employees:
Validity of the predictor(s)
The selection ratio
The base rate

12. 1. Validity of the predictor
The higher the validity, the better the quality of newly-appointed employees
Read through p

13. 2. The selection ratio:
Number of job openings/vacancies, divided by the number of applicants
the smaller/lower the selection ratio is the better)

14. 3. The Base rate:
The percentage of present employees who are successful.
Management usually decides what constitutes successful job performance.
It has in mind a standard or critical value that separates successful form unsuccessful workers – this critical value is the criterion cut-off.

15. Selection decisions as influenced by instituting cut-off points
As long as predictors do not possess perfect validity, we will always make (some) errors in personnel selection
See figure 5.12 , p.141 in your textbooks
A: true positives
B: true negatives
C: false negatives
D: false positives

16. A: True positives: This group represents a correct decision, we correctly decided to hire them.
B: True negatives: This group represents a correct decision, we correctly predicted they would not succeed on the job.
C: False negatives: People who failed the predictor test, but who would have succeeded had they been given the chance. (The good ones we let get away)
D: False positives: People who passed the predictor test, but perform unsatisfactorily after being hired. (The bad ones we let in)

17. Aspects which are related to the determination of a specific cut-off point:
Cascio, Alexander, and Barrett (1988):
Should be reasonable and consistent with the expectations of acceptable job proficiency in the workplace
Should be set at such a level that workers are selected who are capable of learning a job and performing it in a safe and efficient manner
3. The process of setting a cut-off scores should begin with a job analysis that identifies relative levels of proficiency on critical KSAs
4. When possible, data on the actual relationship of test scores to criterion measures of job performance should be considered carefully
5. Cut-off scores should be set high enough to ensure that minimum standards of job performance are met

18. Overview of personnel selection
See p
Two goals that we want to reach in South Africa:
1. selecting qualified applicants and,
2. achieving diversification in the workforce.

19. Relationship between test utility and organisational efficiency
Human Resources “department”, together with other parts/sections of the organisation, should contribute towards the overall success.
Utility of valid tests enhances efficiency by reducing turnover, training time, and accidents.
Value for economy in RSA could be high: with a large pool of applicants, effective selection strategies’ contribution could be enormous. 
Best feature of utility analysis might be the informational value of that which is provided by psychologists to assist managers in making personnel decisions.

20. Placement and classification
Involves deciding which jobs people should be assigned to after they have been hired: personnel function
Usually limited to large organisations: two or more jobs an applicant can fill: Must be decided which job best matches the person’s talents and abilities
Placement takes place on the basis of one predictor
Classification takes place on the basis of two or more predictors
Values: what is best in terms of satisfaction and productivity for the individual may not be best for the company and vice versa

21. Three strategies:
1. Vocational guidance strategy
2. Pure selection strategy
3. Successive selection strategy
(see p.149 in your textbook)

22. Any questions???