HRM gaining a competitive advantage chapter 006 3rd ed

6
Chapter

Irwin/McGraw-Hill

Selection and
Placement
Objectives
• Establish the basic scientific properties of
personnel selection methods, including
reliability, validity, and generalizability.
• Discuss how the particular characteristics of a
job, organization, or applicant affect the utility of
any test.
• Describe the government’s role in personnel
selection decisions, particularly in the areas of
constitutional law, executive orders, and judicial
precedents.
• List the common methods used in selecting
human resources.
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6-2

Selection Method Standards for
Evaluation Purposes
Reliability
 Reliability
Validity
 Validity

Generalizability
 Generalizability
Utility
 Utility
Legality
 Legality

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Reliability

6-3

The degree to which a measure is consistent over
Reliability = .95

Measure

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Reliability = .7

Measure

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Reliability-Correlation Coefficient

6-4






Is a measure of the degree to which two sets of
numbers are related.
A perfect positive relationship equals + 1.0
A perfect negative relationship equals -1.0

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Reliability

6-5







Test-retest reliability-- How scores on the measure at

one time relate to scores on the same measure at
another time.
The consistency of multiple items or scales can also be
assessed via split-half reliability estimates.
Inter-rater reliability estimates-- two different human
judges rate the person on the dimensions of interest, it
is then correlated.

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Validity

6-6



The extent to which performance on a measure is
related to job performance.




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Criterion-related
Criterion-related
predictive

 predictive
concurrent
 concurrent
Content
Content

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Criterion- Related
Validity

6-7



Determines a relationship between selection test
scores and job performance.
Predictive
Measure
performance
of those hired

test
applicants

TIME

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Criterion - Related
Validity

6-8



Determines a relationship between selection test
scores and job performance.
Predictive
Measure
performance
of those hired

test
applicants

TIME

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Concurrent
test
existing
employees

Measure

their
performance

TIME

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Validity Testing--Predictive

6-9

Minimum
Level

PERFORMANCE

..

.. .
.

.

TEST SCORE
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Validity Testing--Predictive

6-10

Minimum
Level

PERFORMANCE

..

..

REJECT

.

.

ACCEPT

TEST SCORE
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Validity Testing--Predictive

6-11

ERROR

PERFORMANCE

Minimum
Level

..

..

..

SUCCESS

FAILURE
ERROR

REJECT

ACCEPT

TEST SCORE
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Content Validity

6-12

Test items are representative of the job situation.
Determined through expert judgment.
Content Validity Ratio (CVR)

CVR =

where

ne

n e - N/2
N/2

= number of experts who
rate item as “essential”

N = total number of experts
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6-13

Required Level of CVR
to reach Statistical Significance as a function of
the Number of Judges

1.0

Required
CVR

.75
.50
.25

5

10 15 20 25 30
Number of Judges

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Generalizability

6-14





Degree to
to which

which one
one can
can extend
extend validity
validity
Degree
to other
other contexts
contexts
to
Three contexts
contexts include
include
Three
different situations
situations
 different
especially true
true for
for more
more complex
complex jobs
jobs
especially
different samples
samples of
of people
people
 different
more similar

similar across
across race
race and
and gender
gender
more
than thought
thought
than
different time
time periods
periods
 different

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Utility

6-15





Degree to which information from selection
method enhances bottom line effectiveness.
Does the test increase the accuracy of the

selection process?

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Low Utility

6-16

Success

70%
15%

Minimum
Level

5%

10%
Failure

PERFORMANCE

ERROR
REJECT

without test - 85% accuracy

with test
- 87% accuracy
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ACCEPT

TEST SCORE
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High Utility

6-17

Minimum
Level

20%
40%

SUCCESS

30%

10%

FAILURE

PERFORMANCE

ERROR
REJECT

without test - 50% accuracy
with test
- 75% accuracy
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ACCEPT

TEST SCORE
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Legality

6-18






Constitutional law
law used
used sparingly
sparingly
Constitutional
Legislation (CRA,
(CRA, ADEA,

ADEA, ADA)
ADA)
Legislation
employers need
need to
to establish
establish business
business
 employers
necessity for
for any
any method
method showing
showing adverse
adverse
necessity
impact
impact
prohibits preferential
preferential treatment
treatment for
for
 prohibits
protected groups
groups
protected
Executive Orders
Orders (( 11246)
11246)
Executive

prohibits discrimination
discrimination
 prohibits
mandates affirmative
affirmative action
action to
to hire
hire qualified
qualified
 mandates
minorities for
for government
government contracts
contracts
minorities

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6-19

AdverseERROR
Impact

Majority

SUCCESS
Minimum

Level

Protected
FAILURE

PERFORMANCE
ERROR

REJECT

ACCEPT

TEST SCORE

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SelectionRatio
Ratioof
ofmajority
majority=
=60%,
60%,
IfIfSelection
forAdverse
AdverseImpact
Impactto
tooccur
occurthe
the
for

SelectionRatio
Ratioof
ofprotected
protectedclass
class
Selection
mustbe
beless
lessthan
than(4/5
(4/5of
of60%)
60%)or
or
must
48%.
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48%.


Types of Selection Methods

6-20



Selection interviews are defined as a dialogue
initiated by one or more persons to gather information
and evaluate the qualifications of an applicant for
employment.



References and biographical data gather
background information on candidates.



Physical ability test-- relevant for predicting not
only job performance but occupational injuries and
disabilities.

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Types of Selection Methods
(cont.)

6-21



Cognitive ability test differentiate candidates on
mental ability.



Personality inventories categorize individuals by

their personality characteristics.




Work samples simulate the job
Honesty tests and drug tests

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6-22

Evaluating Various Selection
Methods

Interview

Low

Low

Low

Low

Low

References

Low

Low

Low

Low

Libel?

Bio-data

High

High

Physical Ability

High

Mod - High

Low

Moderate

High
Low

Low

Cognitive Ability High
Personality

High

Low
Low

Work-samples

High

High

Drug

High

High

Honesty

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Insufficient

Adverse Impact
-sex,race

Moderate Adverse
Impact-sex
Adverse
High
Impact-race

Job specific High

Low
Low

Low
Low

Job specific High

High

High

Costly

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