1. 1 Chapter 7 Staffing Decisions Copyright © The McGraw-Hill Companies, Inc.

2. 2 Module 1: Conceptual Issues in Staffing Staffing decisions –Associated with recruiting, selecting, promoting, & separating employees Copyright © The McGraw-Hill Companies, Inc. Keith Brofsky/Getty Images

3. 3 Staffing From Strategic Perspective Model 1: Staffing as person-job match –Assumes well-defined jobs in a stable industry Model 2: Staffing as strategy implementation –Staffing as support mechanism to implement a predetermined strategy Model 3: Staffing as strategy formation –Identify individuals with core attributes who will help develop organizational strategy Copyright © The McGraw-Hill Companies, Inc.

4. 4 Impact of Staffing Practices on Firm Performance High performance work practices –Include use of formal job analyses, selection from within for key positions, & use of formal assessment devices for selection Staffing practices have positive associations with firm performance Copyright © The McGraw-Hill Companies, Inc.

5. 5 Stakeholders in the Staffing Process Line managers –Seek accurate, easy-to-administer, & easy-to-defend staffing process Co-workers –Among other considerations, layoff decisions have practical & emotional consequences Applicants –Manner in which staffing decision carried out will be influential in their perception of organization Copyright © The McGraw-Hill Companies, Inc.

6. 6 Staffing from International Perspective Job descriptions used universally Educational qualifications & application forms widely used for initial screening Interviews & references are common post- screening techniques Cognitive ability tests used less frequently; personality tests used more frequently Copyright © The McGraw-Hill Companies, Inc.

7. 7 Module 2: Evaluation of Staffing Outcomes Validity: Accurateness of inferences made based on test or performance data Validity designs Criterion-related Content-related Construct-related Copyright © The McGraw-Hill Companies, Inc.

8. 8 Levels of Relationship Between a Test & a Criterion Copyright © The McGraw-Hill Companies, Inc. Figure 7.3 Scatterplots Depicting Various Levels of Relationship between a Test and a Criterion

9. 9 Validity Selection ratio (SR) n = number of available jobs N = number of people assessed Copyright © The McGraw-Hill Companies, Inc. SR = n/N

10. 10 Selection Decisions False positive Applicant accepted but performed poorly False negative Applicant rejected but would have performed well True positive Applicant accepted & performed well True negative Applicant rejected & would have performed poorly Copyright © The McGraw-Hill Companies, Inc.

11. 11 Cut score or cutoff score Specified point in distribution of scores below which candidates are rejected Raising cut score will result in fewer false positives but more false negatives Strategy for determining cut score depends on situation Copyright © The McGraw-Hill Companies, Inc.

12. 12 Effect on Selection Errors of Moving the Cutoff Score Copyright © The McGraw-Hill Companies, Inc. Figure 7.4 The Effect on Selection Errors of Moving the Cutoff Score

13. 13 Establishing Cut Scores Criterion-referenced cut score Consider desired level of performance & find test score corresponding to that level Norm-referenced cut score Based on some index of test-takers’ scores rather than any notion of job performance Copyright © The McGraw-Hill Companies, Inc.

14. 14 Utility Addresses cost/benefit ratio of one staffing strategy versus another Base rate –% of current workforce performing successfully –If performance is high, then new system will likely add very little to productivity Copyright © The McGraw-Hill Companies, Inc.

15. 15 Utility Analysis Assesses economic return on investment of HR interventions like staffing or training Calculations can be very complex Copyright © The McGraw-Hill Companies, Inc.

16. 16 Feelings of unfairness lead to: Initiation of lawsuits Filing of formal grievances with company representatives Counterproductive behavior Copyright © The McGraw-Hill Companies, Inc.

17. 17 Module 3: Practical Issues in Staffing Staffing Model –Comprehensiveness Enough high quality information about candidates to predict likelihood of their success –Compensatory Candidates can compensate for relative weakness in one attribute through strength in another one, providing both are required by job Copyright © The McGraw-Hill Companies, Inc.

18. 18 Combining Information Clinical decision making –Uses judgment to combine information & make decision about relative value of different candidates Statistical decision making –Combines information according to a mathematical formula Copyright © The McGraw-Hill Companies, Inc.

19. 19 Combining Information (cont'd) Hurdle system of combining scores –Non-compensatory strategy: individual has no opportunity to compensate at later stage for low score in earlier stage –Establishes series of cut scores Copyright © The McGraw-Hill Companies, Inc. Anthony Saint James/Getty Images

20. 20 Hurdle System of Combining Scores Constructed from multiple hurdles so candidates who don’t exceed each of the minimum dimension scores are excluded from further consideration Often set up sequentially More expensive hurdles placed later Used to narrow a large applicant pool Copyright © The McGraw-Hill Companies, Inc.

21. 21 Combining Information (cont'd) Combination scores by regression (compensation approach) –Multiple regression analysis Results in equation for combining test scores into a composite based on correlations of each test score with performance score Copyright © The McGraw-Hill Companies, Inc.

22. 22 Relationship Between Predictor Overlap & Criterion Prediction Copyright © The McGraw-Hill Companies, Inc. Figure 7.5 The Relationship between Predictor Overlap and Criterion Prediction

23. 23 Combination Scores by Regression Cross-validation –Regression equation developed on first sample is tested on second sample to determine if it still fits well Copyright © The McGraw-Hill Companies, Inc.

24. 24 Score banding Individuals with similar test scores grouped together in category (score band) Selection within band made based on other considerations Controversial Copyright © The McGraw-Hill Companies, Inc.

25. 25 Score Banding Standard error of measurement (SEM) –Provides measure of amount of error in a test score distribution –Function of reliability of test & variability of test scores Copyright © The McGraw-Hill Companies, Inc.

26. 26 Score Banding Fixed band system –Candidates in lower bands not considered until higher bands have been exhausted Sliding band system –Permits band to be moved down a score point when highest score in a band is exhausted Copyright © The McGraw-Hill Companies, Inc.

27. 27 Subgroup Norming –Develop separate lists for individuals in different demographic groups who are then ranked within their respective group –In general, subgroup norming is not allowed as staffing strategy –However, there is no explicit prohibition of age norming Copyright © The McGraw-Hill Companies, Inc.

28. 28 Selection vs. Placement Sometimes, the challenge is to place an individual rather than simply select an individual Placement –Process of matching multiple applicants & multiple job openings –Strategies Vocational guidance Pure selection Cut & fit Copyright © The McGraw-Hill Companies, Inc.

29. 29 Deselection 2 typical situations –Termination for cause Individual is fired for a particular reason Generally not unexpected –Layoff Job loss due to employer downsizing or reductions in force Often occurs with little or no warning Copyright © The McGraw-Hill Companies, Inc.

30. 30 Large Staffing Projects Concessions must be made: Labor intensive assessment procedures are not feasible Requires an actuarial strategy Utility can be an issue (Cost of testing can be expensive) Fairness is a critical issue Standard, well-established, & feasible selection strategies are important Copyright © The McGraw-Hill Companies, Inc.

31. 31 Small Staffing Projects Luxury of using wider range of assessment tools Adverse impact is less of an issue Fairness is still a key issue Rational, job-related, & feasible selection strategies are important Copyright © The McGraw-Hill Companies, Inc.

32. 32 Module 4: Legal Issues in Staffing Decisions Charges of employment discrimination –Involve violations of Title VII of 1964 CRA, ADA, or ADEA –I-O psychologists often serve as expert witnesses in these lawsuits –Consequences can be substantial –Most often brought by individual claiming unfair termination Copyright © The McGraw-Hill Companies, Inc. C. Sherburne/PhotoLink/Getty Images

33. 33 Intentional Discrimination or Adverse Treatment Plaintiff attempts to show that employer treated plaintiff differently than majority applicants or employees Copyright © The McGraw-Hill Companies, Inc.

34. 34 Unintentional Discrimination or Adverse Impact (AI) Acknowledges employer may not have intended to discriminate against plaintiff but employer practice had AI on group to which plaintiff belongs Copyright © The McGraw-Hill Companies, Inc.

35. 35 AI Determination Burden of proof on plaintiff to show: a) he/she belongs to a protected group, & b) members of protected group were statistically disadvantaged compared to majority employees Copyright © The McGraw-Hill Companies, Inc.

36. 36 “80%” or “4/5ths” rule –Guideline for assessing whether there is evidence of AI –Plaintiffs must show that protected group received only 80% of desirable outcomes received by majority group in order to meet burden of demonstrating AI –Results in AI ratio Copyright © The McGraw-Hill Companies, Inc.

37. 37 “80%” or “4/5 ths ” Rule (cont'd) Crude & can be substantially affected by sample sizes Burden of proof shifts to employer once AI is demonstrated Copyright © The McGraw-Hill Companies, Inc.

38. 38 Permissions Slide 2: McGraw-Hill Education Digital Image Library, Keith Brofsky/Getty Images, Source Image ID: MD002231, Filename: 59212.JPG Slide 4: Figure 7.1 from Guion, R. M. (1998). Assessment, measurement, and prediction, p. 6. Mahwah, NJ: Lawrence Erlbaum Associates. Reprinted by permission of Lawrence Erlbaum Associates, Inc. Slide 5: Figure 7.2 from Howard, A. (1991). Current influences on the staffing process. In D. W. Bray (Ed.), Working with organizations and their people: A guide to human resources practice. New York: Guilford Press. Used by permission. Slide 21: McGraw-Hill Education Digital Image Library, Anthony Saint James/Getty Images, Source Image ID: SP004984, Filename: SS31010.JPG Slide 24: McGraw-Hill Education Digital Image Library, C. Sherburne/PhotoLink/Getty Images, Source Image ID: SO000477, Filename: 25057.JPG