1. PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved.

2. 5–2 Objectives After studying this chapter, you should be able to: 1.Explain the objectives of the personnel selection process. 2.Identify the various sources of information used for personnel selection. 3.Compare the value of different types of employment tests. 4.Illustrate the different approaches to conducting an employment interview. 5.Describe the various decision strategies for selection.

3. Copyright © 2004 South-Western. All rights reserved.5–3 Matching People and Jobs Selection  The process of choosing individuals who have relevant qualifications to fill existing or projected job openings. Selection 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. Copyright © 2004 South-Western. All rights reserved.5–4 The Goal of Selection: Maximize “Hits” Figure 5.1 Presentation Slide 5–1 MISS Inaccurate prediction (Person would have succeeded on the job) Inaccurate prediction (Person would have succeeded on the job)MISS HIT Accurate prediction (Person succeeds on the job) Accurate prediction (Person succeeds on the job)HIT HIT Accurate prediction (Person would not have succeeded on the job) Accurate prediction (Person would not have succeeded on the job)HIT MISS Inaccurate prediction (Person fails on the job) Inaccurate prediction (Person fails on the job)MISS Predicted Success Job Performance Low High

5. Copyright © 2004 South-Western. All rights reserved.5–5 Steps in the Selection Process Figure 5.2 Note: Steps may vary. An applicant may be rejected after any step in the process. Completion of application Initial interview in HR department Employment testing (aptitude, achievement) Background investigation Preliminary selection in HR department Supervisor/team interview Medical exam/drug test Hiring decision

6. Copyright © 2004 South-Western. All rights reserved.5–6 The Selection Process Obtaining 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.

7. Copyright © 2004 South-Western. All rights reserved.5–7 Reliability as Stability over Time HIGH RELIABILITY TESTRETEST APPLICANTSCORESCORE Smith9093 Perez6562 Riley110105 Chan8078 VERY LOW RELIABILITYTESTRETEST APPLICANTSCORE SCORE Smith9072 Perez6588 Riley11067 Chan80111 Presentation Slide 5–2

8. Copyright © 2004 South-Western. All rights reserved.5–8 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 Presentation Slide 5–3

9. Copyright © 2004 South-Western. All rights reserved.5–9 Valid and Invalid Tests Presentation Slide 5–4

10. Copyright © 2004 South-Western. All rights reserved.5–10 Validation Approaches 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; low score is predictive of low job performance. Concurrent Validity  The extent to which test scores (or other predictor information) match criterion data obtained at about the same time from current employees.  High or low test scores for employees match their respective job performance.

11. Copyright © 2004 South-Western. All rights reserved.5–11 Validation Approaches cont’d 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.  A high or low test score at hiring predicts high or low job performance at a point in time after hiring. Correlation Coefficient  A number ranging from 0.00, denoting a complete absence of relationship, to 1.00 and to -1.00, indicating a perfect positive and perfect negative relationship, respectively.

12. Copyright © 2004 South-Western. All rights reserved.5–12 Correlation Scatterplots Figure 5.3

13. Copyright © 2004 South-Western. All rights reserved.5–13 Validation Approaches (cont’d) Content 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 validity  The extent to which a selection tool measures a theoretical construct or trait.  Are difficult to validate  Example: creative arts tests, honesty tests

14. Copyright © 2004 South-Western. All rights reserved.5–14 Validation Approaches Cross-validation  Verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population). Validity generalization  The extent to which validity coefficients can be generalized across situations.

15. Copyright © 2004 South-Western. All rights reserved.5–15 Steps in Validating a Test (Criterion-Related Validity) Presentation Slide 5–5 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

16. Copyright © 2004 South-Western. All rights reserved.5–16 Sources of Information about Job Candidates Application Forms Online Applications Biographical Information Blanks (BIB) Background Investigations Polygraph Tests Integrity and Honesty Tests Graphology Medical Examinations Employment Tests Interviews Presentation Slide 5–6

17. Copyright © 2004 South-Western. All rights reserved.5–17 The Effectiveness of Selection Methods Figure 5.4 Source: David E. Terpstra, “The Search for Effective Methods.” Reprinted from HRFocus, May 1996. © 1996 American Management Association International. Reprinted by permission of American Management Association International, New York, NY. All rights reserved. http://www.amanet.org/. In a survey of 201 HR executives, participants were asked which selection methods produce the best employees. The mean rating for nine methods on a 5-point scale (1 = not good, 3 = average, 5 = extremely good): Work samples3.68 References/recommendations3.49 Unstructured interviews3.49 Structured interviews3.42 Assessment centers3.42 Specific aptitude tests3.08 Personality tests2.93 General cognitive ability tests2.89 Biographical information blanks2.84

18. Copyright © 2004 South-Western. All rights reserved.5–18 That’s My Story and I’m Sticking to It Figure 5.5 Source: Examples are from several companies, including Robert Half International. “Beware of Resumania,” Personnel Journal, April 1996, 28. Reprinted with permission.

19. Copyright © 2004 South-Western. All rights reserved.5–19 How HR Uses Background Investigations Figure 5.6 Source: Society for Human Resource Management (SHRM). Percentage of respondents conducting the following checks: Contact references provided by candidate75% Verify schools attended and degrees earned62% Contact people suggested by references42% Check driving records41% Verify reference letters provided by candidate30% Run credit checks25%

20. Copyright © 2004 South-Western. All rights reserved.5–20 Application Forms Application date Educational background Experience Arrests and convictions Country of citizenship References Disabilities

21. Copyright © 2004 South-Western. All rights reserved.5–21 Biographical Information Blanks Sample Questions:  At what age did you leave home?  How large was the town/city in which you lived as a child?  Did you ever build a model airplane that flew?  Were sports a big part of your childhood?  Do you play any musical instruments?

22. Copyright © 2004 South-Western. All rights reserved.5–22 Background Investigations Checking References  Letters of reference  Mail and telephone checks  Specific job-related information  Family Educational Rights Privacy Act of 1974 (FERPA)  Requires signed requests for reference letters and signed consent to background checks.  Applies to both educational and private employers.  Failure to Check References  Negligent hiring liabilities

23. Copyright © 2004 South-Western. All rights reserved.5–23 Background Investigations (cont’d) Organizations using credit reports must:  Advise and receive written consent from applicants if a report will be requested.  Provide a written certification to the consumer reporting agency as to the purpose of the report.  Provide applicants a copy of the consumer report as well as a summary of their rights under the CCRRA.  Must provide an adverse-action notice a person if that person is not hired and contact information related to the reporting agency.

24. Copyright © 2004 South-Western. All rights reserved.5–24 Employee Polygraph Protection Act (1988) Use of “lie detectors” is largely prohibited. Act requires qualified examiners. Act requires disclosure of information where used. Encouraged employers’ use of paper and pencil integrity and honesty tests. HRM 1

25. Copyright © 2004 South-Western. All rights reserved.5–25 Integrity Test Question Examples Figure 5.7 Note: The number of items in each category was 2, 8, 13, and 9 respectively. Source: Stephen Dwight and George Alliger, “Reactions to Overt Integrity Test Items,” Educational and Psychological Measurement 57, no. 6 (December 1977): 937–48, copyright © 1997 by Sage Publications, Inc. Reprinted with the permission of Sage Publications, Inc.

26. Copyright © 2004 South-Western. All rights reserved.5–26 Background Investigations (cont’d) Graphology  The use of a sample of an applicant’s handwriting to make an employment decision. 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.

27. Copyright © 2004 South-Western. All rights reserved.5–27 Drug Testing Drug-Free Workplace Act of 1988  Testing for illegal drugs is required applicants and employees of federal contractors. Effects of Testing  Questions about the accuracy of results.  Applicants testing positive are generally not hired.  Current employees testing positive are referred to employee assistance programs for rehabilitation.

28. Copyright © 2004 South-Western. All rights reserved.5–28 Employment Tests Employment 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.

29. Copyright © 2004 South-Western. All rights reserved.5–29 Percentage of Job Skills Testing in Selected Industries Figure 5.8 TEST ALL JOB ONLY SELECT INDUSTRYAPPLICANTSJOB CATEGORIES Manufacturing7%49% Financial Services4%68% Wholesale and Retail0%53% Business and Professional Services2%57% Other Services6%63% Source: American Management Association: “Job Skills Testing Questionnaire,” 1998.

30. Copyright © 2004 South-Western. All rights reserved.5–30 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.

31. Copyright © 2004 South-Western. All rights reserved.5–31 Is That Your Final Answer? Figure 5.9 Verbal 1. What is the meaning of the word “surreptitious”? a. covertc. lively b. windingd. sweet 2. How is the noun clause used in the following sentence? “I hope that I can learn this game.” a. subjectc. direct object b. predicate nominative d. object of the preposition Quantitative 3. Divide 50 by 0.5 and add 5. What is the result? a. 25c. 95 b. 30d. 105 4. What is the value of 1442? a. 12c. 288 b. 72d. 20736 Answers: 1a, 2c, 3d, 4d

32. Copyright © 2004 South-Western. All rights reserved.5–32 Is That Your Final Answer? (cont’d) Figure 5.9 Reasoning 5.______ is to boat as snow is to ______. a. Sail, skic. Water, ski b. Water, winterd. Engine, water 6.Two women played 5 games of chess. Each woman won the same number of games, yet there were no ties. How can this be? a. There was a forfeit.c. They played different people. b. One player cheated.d. One game is still in progress. Mechanical 7.If gear A and gear C are both turning counterclockwise, what is happening to gear B? a. It is turning counterclockwise. b. It is turning clockwise. c. It remains stationary. d. The whole system will jam. Answers: 5c, 6c, 7b

33. Copyright © 2004 South-Western. All rights reserved.5–33 CPI Personality Facets and Sample Items 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. Figure 5.10 Source: Mark J. Schmit, Jenifer A. Kihm, and Chet Robie, “Development of a Global Measure of Personality,” Personnel Psychology 53, no. 1 (Spring 2000): 153–93.

34. Copyright © 2004 South-Western. All rights reserved.5–34 Classification of Employment Tests (cont’d) Physical Ability Tests  Must be related to the essential functions of the the 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.

35. Copyright © 2004 South-Western. All rights reserved.5–35 Interviewing Methods Nondirective Interview  The applicant determines the course of the discussion, while the interviewer refrains from influencing the applicant’s remarks. Structured Interview  An interview in which a set of standardized questions having an established set of answers is used.

36. Copyright © 2004 South-Western. All rights reserved.5–36 Interviewing Methods (cont’d) Situational 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)  An interview in which an applicant is asked questions about what he or she actually did in a given situation. Panel Interview  An interview in which a board of interviewers questions and observes a single candidate.

37. Copyright © 2004 South-Western. All rights reserved.5–37 Interviewing Methods (cont’d) Computer 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 interviews  Using video conference technologies to evaluate job candidates’ technical abilities, energy level, appearance, and the like before incurring the costs of a face-to-face meeting.

38. Copyright © 2004 South-Western. All rights reserved.5–38 HRM 2 QUESTION: It is the night before your scheduled vacation. You are all packed and ready to go. Just before you get into bed, you receive a phone call from the plant. A problem has arisen that only you can handle. You are asked to come in to take care of things. What would you do in this situation? RECORD ANSWER: SCORING GUIDE: Good:“I would go in to work and make certain that everything is O.K. Then I would go on vacation.” Good:“There are no problems that only I can handle. I would make certain that someone qualified was there to handle things.” Fair:“I would try to find someone else to deal with the problem.” Fair:“I would go on vacation.” Sample Situational Interview Question

39. Copyright © 2004 South-Western. All rights reserved.5–39 Variables in the Employment Interview Figure 5.11 Presentation Slide 5–7 Applicant KSAOs KSAOs Education Education Experience Experience Interests Interests Perceptions Perceptions Nonverbal cues Nonverbal cues Age, sex, race, etc. Age, sex, race, etc.Applicant KSAOs KSAOs Education Education Experience Experience Interests Interests Perceptions Perceptions Nonverbal cues Nonverbal cues Age, sex, race, etc. Age, sex, race, etc. Context Purpose of the interview Purpose of the interview Law and regulations Law and regulations Economic issues Economic issues Physical settings Physical settings Interview structure Interview structureContext Purpose of the interview Purpose of the interview Law and regulations Law and regulations Economic issues Economic issues Physical settings Physical settings Interview structure Interview structure Interviewer(s) Experience/training Experience/training Age, sex, race, etc. Age, sex, race, etc. Perceptions Perceptions Nonverbal cues Nonverbal cues Goals GoalsInterviewer(s) Experience/training Experience/training Age, sex, race, etc. Age, sex, race, etc. Perceptions Perceptions Nonverbal cues Nonverbal cues Goals Goals INTERVIEW __________________ Process Process_____________________ Outcome (Hiring Decision) INTERVIEW __________________ Process Process_____________________ Outcome (Hiring Decision)

40. Copyright © 2004 South-Western. All rights reserved.5–40 Ground Rules for Employment Interviews Establish an interview plan Establish and maintain rapport Be an active listener Pay attention to nonverbal cues Provide information freely Use questions effectively Separate facts from inferences Recognize biases and stereotypes Control the course of the interview Standardize the questions asked

41. Copyright © 2004 South-Western. All rights reserved.5–41 Reaching a Selection Decision Selection Considerations:  Are 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?

42. Copyright © 2004 South-Western. All rights reserved.5–42 “Can-Do”and “Will-Do”Factors in Selection Decisions Figure 5.12 “Can Do” ______________________________ Knowledge Knowledge Skills Skills Abilities Abilities “Can Do” ______________________________ Knowledge Knowledge Skills Skills Abilities Abilities “Will Do” ______________________________ Personality Personality Values Values Motivation Motivation “Will Do” ______________________________ Personality Personality Values Values Motivation Motivation Job Performance

43. Copyright © 2004 South-Western. All rights reserved.5–43 Selection Decision Strategies Objectivity Multiple Cutoff Model - Minimum Statistical Approach Compensatory Model - Average Multiple Hurdle Model- Sequential Subjectivity Clinical Approach

44. Copyright © 2004 South-Western. All rights reserved.5–44 Selection Decision Models Compensatory Model  Permits a high score in one area to make up for a low score in another area. Multiple Cutoff Model  Requires an applicant to achieve a minimum level of proficiency on all selection dimensions. Multiple Hurdle Model  Only applicants with sufficiently high scores at each selection stage go on to subsequent stages in the selection process.

45. Copyright © 2004 South-Western. All rights reserved.5–45 Selection Process (cont’d) Selection Ratio  The number of applicants compared with the number of people to be hired. Cutoff Score  The point in a distribution of scores above which a person is considered and below which a person is rejected.

46. Copyright © 2004 South-Western. All rights reserved.5–46 Test Score Scatterplot with Hypothetical Cutoffs Figure 5.13

47. Copyright © 2004 South-Western. All rights reserved.5–47 Selection Process (cont’d) Final Decision  Selection of applicant by departmental or immediate supervisor to fill vacancy.  Notification of selection and job offer by the human resources department.