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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

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1 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Employee Selection 1–1 The Challenges of Human Resources Management

2 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 39 Chapter Objectives Chapter Objectives After studying this chapter, you should be able to Explain the objectives of the personnel selection process. Explain what it is required for an employee selection tool to be reliable and valid. Illustrate the different approaches to conducting an employment interview. Compare the value of different types of employment tests. Describe the various decision strategies for selection. LEARNING OUTCOME 1 LEARNING OUTCOME 2 LEARNING OUTCOME 3 LEARNING OUTCOME 4 LEARNING OUTCOME 5

3 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 39 Matching People and Jobs SelectionSelection  The process of choosing individuals who have relevant qualifications to fill existing or projected job openings. Selection ConsiderationsSelection Considerations  Person-job fit: job analysis identifies required individual competencies (KSAOs) for job success.  Person-organization fit: the degree to which individuals are matched to the culture and values of the organization.

4 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 39 The Goal of Selection: Maximize “Hits”

5 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 39 Begin with a Job Analysis Results of a Job AnalysisResults of a Job Analysis  Job Description – A detailed list of tasks, duties, responsibilities, and authority  Job Specifications – the individual competencies employees need for success—the knowledge, skills, abilities, and other factors (KSAOs) that lead to superior performance.

6 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 39 Steps in the Selection Process

7 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 39 The Selection Process Obtaining Reliable and Valid InformationObtaining Reliable and Valid Information  Reliability – The degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures.  Validity – Degree to which a test or selection procedure measures a person’s attributes.

8 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 39 Approaches to Validation Criterion-related Validity  The extent to which a selection tool predicts, or significantly correlates with, important elements of work behavior. – A high score indicates high job performance potential; a low score is predictive of low job performance. Predictive Validity  The extent to which applicants’ test scores match criterion data obtained from those applicants/employees after they have been on the job for some indefinite period

9 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 39 Approaches to Validation (cont.) Content validityContent validity  The extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform a particular job. – Example: typing tests, driver’s license examinations Construct validityConstruct validity  The extent to which a selection tool measures a theoretical construct or trait.  Are difficult to validate – Example: creative arts tests, honesty tests

10 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–10 Reliability as Stability over Time HIGH RELIABILITY TESTRETEST APPLICANTSCORESCORE Smith9093 Perez6562 Riley110105 Chan8078 VERY LOW RELIABILITYTESTRETEST APPLICANTSCORE SCORE Smith9072 Perez6588 Riley11067 Chan80111

11 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–11 Reliability as Consistency (Interrater Reliability) HIGH RELIABILITY APPLICANTRater #1Rater #2Rater #3 Smith988 Perez565 Riley455 Chan888 VERY LOW RELIABILITY APPLICANTRater #1Rater #2Rater #3 Smith956 Perez594 Riley427 Chan842

12 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–12 Valid and Invalid Tests

13 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 39 Correlation Scatterplots

14 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 39 Copyright © 2007 South-Western. All rights reserved.6–14 Steps in Validating a Test (Criterion-Related Validity) Examination of the job Job analysis/specifications Selection of criteria Relate test scores to criterion data, then cross validate Plan research for test (continuing cross validation) Collect criterion data (concurrent method) Selection of tests for tryout Administer tests Analyze follow-up data Interpret results for operational use of tests Include test(s) in selection process (operational) Revise operational program Collect criterion data (predictive method) OR Alternative/ optional

15 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 39 Initial Screening Cover Letters and ResumesCover Letters and Resumes Video ResumesVideo Resumes Application FormsApplication Forms Online ApplicationsOnline Applications Biographical Information Blanks (BIB)Biographical Information Blanks (BIB) Background InvestigationsBackground Investigations Polygraph TestsPolygraph Tests Integrity and Honesty TestsIntegrity and Honesty Tests GraphologyGraphology Medical ExaminationsMedical Examinations Employment TestsEmployment Tests InterviewsInterviews Internet Checks and Phone ScreeningInternet Checks and Phone Screening

16 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 39 Application Forms Purpose –Provide information for deciding whether an applicant meets the minimum requirements for experience, education, and so on. –Provide a basis for questions the interviewer will ask about the applicant’s background. –Offer sources for reference checks. Copyright © 2007 South-Western. All rights reserved. 6–16

17 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 39 Application Forms Application dateApplication date Educational backgroundEducational background ExperienceExperience Arrests and criminal convictionsArrests and criminal convictions National originNational origin ReferencesReferences DisabilitiesDisabilities EEO and at-will statementsEEO and at-will statements

18 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 39 18 Topics Employers Should Avoid 1. Children 2. Age 3. Disabilities 4. Physical Characteristics 5. Name 6. Citizenship 7. Lawsuits 8. Arrest records 9. Smoking 10. AIDS/HIV 3.1

19 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 39 Question not to be asked on Application Form How old are you? What is your date of birth? Do you speak English at home? How many sick days did you take last year? Are you married? What is your maiden name? Do you reside with another person? Who cares for the children while you are working? Are you gay? © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–19

20 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 39 Application/Resume Assessment Grid

21 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 39 Online Applications An Internet-based automated posting, application, and tracking process helps firms to more quickly fill positions by:An Internet-based automated posting, application, and tracking process helps firms to more quickly fill positions by:  Attracting a broader and more diverse applicant pool  Collecting and mining resumes with keyword searches to identify qualified candidates  Conducting screening tests online  Reducing recruiting costs significantly

22 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 39 Employment Interviews Why the interview is so popular:Why the interview is so popular:  It is especially practical when there are only a small number of applicants.  It serves other purposes, such as public relations  Interviewers maintain great faith and confidence in their judgments.

23 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 39 Interviewing Methods Nondirective InterviewNondirective Interview  The applicant determines the course of the discussion, while the interviewer refrains from influencing the applicant’s remarks. Structured InterviewStructured Interview  An interview in which a set of standardized questions having an established set of answers is used.

24 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 39 Interviewing Methods (cont.) Situational InterviewSituational Interview  An interview in which an applicant is given a hypothetical incident and asked how he or she would respond to it. Behavioral Description Interview (BDI)Behavioral Description Interview (BDI)  An interview in which an applicant is asked questions about what he or she actually did in a given situation. Panel and Sequential InterviewPanel and Sequential Interview  An interview in which a board of interviewers questions and observes a single candidate.

25 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 39 Hiring Managers Reveal Mistakes

26 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 39 Interviewing Methods (cont.) Phone InterviewPhone Interview  Phone interviews can be effective and actually help expand a company’s pool of talent. Computer InterviewComputer Interview  Using a computer program that requires candidates to answer a series of questions tailored to the job.  Answers are compared either with an ideal profile or with profiles developed on the basis of other candidates’ responses. Video and Digitally-Recorded InterviewsVideo and Digitally-Recorded Interviews  Using video conference technologies to record and evaluate job candidates’ technical abilities, energy level, appearance, and the like before incurring the costs of a face-to-face meeting.

27 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 39 Variables in the Employment Interview

28 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 39 Eleven Ground Rules for Employment Interviews 1.Understand the job 2.Establish an interview plan 3.Establish and maintain rapport and listen actively 4.Pay attention to nonverbal cues 5.Provide information as freely and honestly as possible 6.Use questions effectively 7.Separate facts from inferences 8.Recognize stereotypes and biases 9.Avoid the “halo error,” or judging an individual favorably or unfavorably overall on the basis of only one strong point (or weak point) on which you place high value 10.Control the course of the interview 11.Standardize the questions asked

29 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 39 How Candidates’ Physical Attributes Influence Employ

30 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 39 Diversity Management: Are Your Questions Legal? No questions are expressly forbidden.No questions are expressly forbidden.  Questions related to race, color, age, religion, sex, or national origin can be hazardous.  Questions are acceptable if job-related, asked of everyone, and do not discriminate against a protected class (e.g., females)  Consult EEOC and FEP information when constructing guidelines for interviewers

31 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 39

32 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 39 Appropriate and Inappropriate Interview Questions (cont.)

33 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 39 Sample Reference-Checking Questions

34 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–34 Background Checks Negligent hiring –The failure of an organization to discover, via due diligence, that an employee it hired had the propensity to do harm to others Sources of Information –Social Security verification –Past employment –Educational verification –Criminal records –Motor vehicle records –Credit check –Military records

35 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 35 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–35 Most Common Types of Background Checks

36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 36 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 36 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–36 Background Checks (cont’d) Checking References –Telephone, mail, and e-mail checks Specific job-related information –Letters of reference –Online computerized databases –Privacy Act of 1974 Requires signed requests for reference letters and signed consent to background checks. Applies to both educational and private employers.

37 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 37 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 37 of 39 Background Investigations (cont.) Organizations using credit reports must:Organizations using credit reports must: 1. Check state laws to see if credit reports can legally be used. 2. Advise and receive written consent from applicants if a report will be requested. 3. Provide a written certification to the consumer reporting agency as to the purpose of the report. 4. Provide applicants a copy of the consumer report as well as a summary of their rights under the CCRRA. 5. Must provide an adverse-action notice a person if that person is not hired and contact information related to the reporting agency.

38 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 38 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 38 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–38 Background Investigations (cont’d) Medical Examinations –Given last as they can be costly. –Ensure that the health of an applicant is adequate to meet the job requirements. –Provides a baseline for subsequent examinations –ADA requires all exams be job-related and conducted after an employment offer is made. –Testing for illegal drugs is allowed.

39 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 39 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 39 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–39 Drug Testing Drug-Free Workplace Act of 1988 –Testing for illegal drugs is required applicants and employees of federal contractors. Questions about the efficacy of testing –Why spend large sums on testing when… testing for drugs doesn’t appear to make the workplace safer or improve employee performance? few applicants actually test positive and alcohol abuse creates more problems in the workplace?

40 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 39 Preemployment Tests Preemployment TestPreemployment Test  An objective and standardized measure of a sample of behavior that is used to gauge a person’s knowledge, skills, abilities, and other characteristics (KSAOs) in relation to other individuals.  Pre-employment testing has the potential for lawsuits.

41 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 39 Types of Tests Job Knowledge TestsJob Knowledge Tests Work Sample TestsWork Sample Tests Assessment Center TestsAssessment Center Tests Cognitive Ability TestsCognitive Ability Tests Biodata TestsBiodata Tests Personality and Interest InventoriesPersonality and Interest Inventories Honesty and Integrity TestsHonesty and Integrity Tests Polygraph TestsPolygraph Tests Physical Ability TestsPhysical Ability Tests Medical ExaminationsMedical Examinations Drug TestsDrug Tests

42 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 42 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 42 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–42 2 Best Practices for Employee Testing and Selection Employers should administer tests and other selection procedures without regard to race, color, national origin, sex, religion, age (40 or older), or disability. Employers should ensure that employment tests and other selection procedures are properly validated for the positions and purposes for which they are used. The test or selection procedure must be job-related and its results appropriate for the employer’s purpose. While a test vendor’s documentation supporting the validity of a test may be helpful, the employer is still responsible for ensuring that its tests are valid under UGESP. If a selection procedure screens out a protected group, the employer should determine whether there is an equally effective alternative selection procedure that has less adverse impact and, if so, adopt the alternative procedure. For example, if the selection procedure is a test, the employer should determine whether another test would predict job performance but not disproportionately exclude the protected group. To ensure that a test or selection procedure remains predictive of success in a job, employers should keep abreast of changes in job requirements and should update the test specifications or selection procedures accordingly. Employers should ensure that tests and selection procedures are not adopted casually by managers who know little about these processes. A test or selection procedure can be an effective management tool, but no test or selection procedure should be implemented without an understanding of its effectiveness and limitations for the organization, its appropriateness for a specific job, and whether it can be appropriately administered and scored.

43 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 43 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 43 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–43 Classification of Employment Tests Cognitive Ability Tests –Aptitude tests Measures of a person’s capacity to learn or acquire skills. –Achievement tests Measures of what a person knows or can do right now. Personality and Interest Inventories –“Big Five” personality factors: Extroversion, agreeableness, conscientiousness, neuroticism, openness to experience.

44 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–44 Is That Your Final Answer? Answers: 1. a, 2. c, 3. d, 4. d, 5. c, 6. c, 7. b

45 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 39 CPI Personality Facets and Sample Items Personality tests measure disposition and temperament.Personality tests measure disposition and temperament.  Agreeableness – Trust—I believe people are usually honest with me.  Conscientiousness – Attention to detail—I like to complete every detail of tasks according to the work plans.  Extroversion – Adaptability—For me, change is exciting.  Neuroticism – Self-confidence—I am confident about my skills and abilities.  Openness to Experience – Independence—I tend to work on projects alone, even if others volunteer to help me. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–45

46 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–46 FIGURE 6.7 CPI Personality Facts and Sample Items Agreeableness Consideration—I like to do little things for people to make them feel good. Empathy—I take other people’s circumstances and feelings into consideration before making a decision. Interdependence—I tend to put group goals first and individual goals second. Openness—I do not have to share a person’s values to work well with that person. Thought agility—I think it is vital to consider other perspectives before coming to conclusions. Trust—I believe people are usually honest with me. Conscientiousness Attention to detail—I like to complete every detail of tasks according to the work plans. Dutifulness—I conduct my business according to a strict set of ethical principles. Responsibility—I can be relied on to do what is expected of me. Work focus—I prioritize my work effectively so the most important things get done first. Extroversion Adaptability—For me, change is exciting. Competitiveness—I like to win, even if the activity isn’t very important. Desire for achievement—I prefer to set challenging goals, rather than aim for goals I am more likely to reach. Desire for advancement—I would like to attain the highest position in an organization some day. Energy level—When most people are exhausted from work, I still have energy to keep going. Influence—People come to me for inspiration and direction. Initiative—I am always looking for opportunities to start new projects. Risk-taking—I am willing to take big risks when there is potential for big returns. Sociability—I find it easy to start up a conversation with strangers. Taking charge—I actively take control of situations at work if no one is in charge.

47 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–47 FIGURE 6.7 CPI Personality Facts and Sample Items Neuroticism Emotional control—Even when I am very upset, it is easy for me to control my emotions. Negative affectivity—I am easily displeased with things at work. Optimism—My enthusiasm for living life to its fullest is apparent to those with whom I work. Self-confidence—I am confident about my skills and abilities. Stress tolerance—I worry about things that I know I should not worry about. Openness to Experience Independence—I tend to work on projects alone, even if others volunteer to help me. Innovativeness/creativity—I work best in an environment that allows me to be creative and expressive. Social astuteness—I know what is expected of me in different social situations. Thought focus—I quickly make links between causes and effects.

48 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 48 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 48 of 39 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–48 Classification of Employment Tests Physical Ability Tests –Must be related to the essential functions of job. Job Knowledge Tests –An achievement test that measures a person’s level of understanding about a particular job. Work Sample Tests –Require the applicant to perform tasks that are actually a part of the work required on the job.

49 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 39 Best Practices for employee Testing and Selection

50 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 39 Decision-Making Strategy Selection Considerations:Selection Considerations:  Should individuals to be hired according to their highest potential or according to the needs of the organization?  At what grade or wage level to start the individual?  Should selection be for employee-job match, or should advancement potential be considered?  Should those not qualified but qualifiable be considered?  Should overqualified individuals be considered?  What effect will a decision have on meeting affirmative action plans and diversity considerations?

51 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 51 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 51 of 39

52 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 52 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 52 of 39 “Can-Do” and “Will-Do’ Factors

53 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 53 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 53 of 39 Clinical and Statistical Approach Multiple Cutoff Model - Minimum Statistical Approach Compensatory Model - Average Multiple Hurdle Model- Sequential Clinical Approach ObjectivityObjectivity SubjectivitySubjectivity

54 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 54 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 54 of 39 Statistical Approach Compensatory ModelCompensatory Model  Permits a high score in one area to make up for a low score in another area. Multiple Cutoff ModelMultiple Cutoff Model  Requires an applicant to achieve a minimum level of proficiency on all selection dimensions. Multiple Hurdle ModelMultiple Hurdle Model  Only applicants with sufficiently high scores at each selection stage go on to subsequent stages in the selection process.

55 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 55 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 55 of 39 Test Scores Scatter plot with Hypothetical Cutoffs

56 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 56 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 56 of 39 Selection Process (cont.) Selection RatioSelection Ratio  The number of applicants compared with the number of people to be hired. Cutoff ScoreCutoff Score  The point in a distribution of scores above which a person is considered and below which a person is rejected.

57 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 57 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 57 of 39 Selection Process (cont.) Final DecisionFinal Decision  Selection of applicant by departmental or immediate supervisor to fill vacancy.  Notification of selection and job offer by the human resources department.


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