Employee Selection Managing Human Resources Human Resource Management

Employee Selection Managing Human Resources Human Resource Management Snell • Bohlander • Snell 14 th edition Power. Point Presentation by Charlie Cook The University of West Alabama

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. Copyright © 2007 South-Western. All rights reserved. 2

Matching People and Jobs • Selection Ø The process of choosing individuals who have relevant qualifications to fill existing or projected job openings. • Selection Considerations Ø Person-job fit: job analysis identifies required individual competencies (KSAOs) for job success. Ø Person-organization fit: the degree to which individuals are matched to the culture and values of the organization. Copyright © 2007 South-Western. All rights reserved. 3

Figure 6– 1 The Goal of Selection: Maximize “Hits” Copyright © 2007 South-Western. All rights reserved. 4

Figure 6– 2 Steps in the Selection Process Hiring decision Medical exam/drug test Supervisor/team interview Preliminary selection in HR department Background investigation Employment testing (aptitude, achievement) Initial interview in HR department Completion of application Copyright © 2007 South-Western. All rights reserved. Note: Steps may vary. An applicant may be rejected after any step in the process. 5

The Selection Process • Obtaining Reliable and Valid Information Ø Reliability v The degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures. Ø Validity v Degree to which a test or selection procedure measures a person’s attributes. Copyright © 2007 South-Western. All rights reserved. 6

Reliability as Stability over Time HIGH RELIABILITY APPLICANT Smith Perez Riley Chan TEST SCORE 90 65 110 80 RETEST SCORE 93 62 105 78 VERY LOW RELIABILITY APPLICANT Smith Perez Riley Chan TEST SCORE 90 65 110 80 RETEST SCORE 72 88 67 111 Copyright © 2007 South-Western. All rights reserved. 7

Reliability as Consistency (Interrater Reliability) HIGH RELIABILITY APPLICANT Smith Perez Riley Chan Rater #1 9 5 4 8 Rater #2 8 6 5 8 Rater #3 8 5 5 8 VERY LOW RELIABILITY APPLICANT Smith Perez Riley Chan Rater #1 9 5 4 8 Copyright © 2007 South-Western. All rights reserved. Rater #2 5 9 2 4 Rater #3 6 4 7 2 8

Valid and Invalid Tests Copyright © 2007 South-Western. All rights reserved. 9

Approaches to Validation • Criterion-related Validity Ø The extent to which a selection tool predicts, or significantly correlates with, important elements of work behavior. v A high score indicates high job performance potential; a low score is predictive of low job performance. • Concurrent Validity Ø The extent to which test scores (or other predictor information) match criterion data obtained at about the same time from current employees. v High or low test scores for employees match their respective job performance. Copyright © 2007 South-Western. All rights reserved. 10

Approaches to Validation (cont’d) • Predictive Validity Ø 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. v A high or low test score at hiring predicts high or low job performance at a point in time after hiring. • Validity (or Correlation) Coefficient Ø 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. Copyright © 2007 South-Western. All rights reserved. 11

Figure 6– 3 Correlation Scatterplots Copyright © 2007 South-Western. All rights reserved. 12

Approaches to Validation • Cross-validation Ø 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 Ø The extent to which validity coefficients can be generalized across situations. Copyright © 2007 South-Western. All rights reserved. 13

Approaches to Validation (cont’d) • Content validity Ø The extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform a particular job. v Example: typing tests, driver’s license examinations • Construct validity Ø The extent to which a selection tool measures a theoretical construct or trait. Ø Are difficult to validate v Example: creative arts tests, honesty tests Copyright © 2007 South-Western. All rights reserved. 14

Steps in Validating a Test (Criterion-Related Validity) Examination of the job Job analysis/specifications Selection of criteria Collect criterion data (concurrent method) Alternative/ optional OR Selection of tests for tryout Collect criterion data (predictive method) Administer tests Relate test scores to criterion data, then cross validate Plan research for test (continuing cross validation) Interpret results for operational use of tests Include test(s) in selection process (operational) Analyze follow-up data Copyright © 2007 South-Western. All rights reserved. Revise operational program 15

Sources of Information about Job Candidates • Application Forms • Online Applications • Biographical Information Blanks (BIB) • Integrity and Honesty Tests • Graphology • Medical Examinations • Background Investigations • Employment Tests • Polygraph Tests • Interviews Copyright © 2007 South-Western. All rights reserved. 16

Figure 6– 4 The Effectiveness of Selection Methods 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 samples 3. 68 References/recommendations 3. 49 Unstructured interviews 3. 49 Structured interviews 3. 42 Assessment centers 3. 42 Specific aptitude tests 3. 08 Personality tests 2. 93 General cognitive ability tests 2. 89 Biographical information blanks 2. 84 Source: David E. Terpstra, “The Search for Effective Methods, ” HRFocus (May 1996). Copyright © 2007 South-Western. All rights reserved. 17

Application Forms • Application date • Educational background • Experience • Arrests and criminal convictions • Country of citizenship • References • Disabilities Weighted application blank (WAB) The WAB involves the use of a common standardized employment application that is designed to distinguish between successful and unsuccessful employees. Copyright © 2007 South-Western. All rights reserved. 18

Online Applications • An Internet-based automated posting, application, and tracking process helps firms to more quickly fill positions by: Ø Attracting a broader and more diverse applicant pool Ø Collecting and mining resumes with keyword searches to identify qualified candidates Ø Conducting screening tests online Ø Reducing recruiting costs significantly Copyright © 2007 South-Western. All rights reserved. 19

Biographical Information Blanks • Sample Questions: Ø At what age did you leave home? Ø How large was the town/city in which you lived as a child? Ø Did you ever build a model airplane that flew? Ø Were sports a big part of your childhood? Ø Do you play any musical instruments? Copyright © 2007 South-Western. All rights reserved. 20

Background Investigations • Checking References Ø Mail and telephone checks v Specific job-related information Ø Letters of reference Ø Online computerized databases Ø Privacy Act of 1974 Requires signed requests for reference letters and signed consent to background checks. v Applies to both educational and private employers. v Ø Failure to check references v Negligent hiring liabilities Copyright © 2007 South-Western. All rights reserved. 21

Background Investigations (cont’d) • Organizations using credit reports must: 1. Advise and receive written consent from applicants if a report will be requested. 2. Provide a written certification to the consumer reporting agency as to the purpose of the report. 3. Provide applicants a copy of the consumer report as well as a summary of their rights under the CCRRA. 4. Must provide an adverse-action notice a person if that person is not hired and contact information related to the reporting agency. Copyright © 2007 South-Western. All rights reserved. 22

Figure 6– 3 Use of Pre-Employment Selection Tools by Fortune 1000 Companies* *Tools that 212 security representatives at Fortune 1000 companies said their companies use consistently. Source: Top Security Threats and Management Issues Facing Corporate America, Pinkerton Consulting and Investigations, Inc. Copyright © 2007 South-Western. All rights reserved. 23

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. Copyright © 2007 South-Western. All rights reserved. 24

Figure 6– 6 Integrity Test Question Examples 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. Copyright © 2007 South-Western. All rights reserved. 25

Background Investigations (cont’d) • Graphology Ø The use of a sample of an applicant’s handwriting to make an employment decision. • Medical Examinations Ø Given last as they can be costly. Ø Ensure that the health of an applicant is adequate to meet the job requirements. Ø Provides a baseline for subsequent examinations Ø ADA requires all exams be job-related and conducted after an employment offer is made. Ø Testing for illegal drugs is allowed. Copyright © 2007 South-Western. All rights reserved. 26

Drug Testing • Drug-Free Workplace Act of 1988 Ø Testing for illegal drugs is required applicants and employees of federal contractors. • Questions about the efficacy of testing Ø Why spend large sums on testing when… v testing for drugs doesn’t appear to make the workplace safer or improve employee performance? v few applicants actually test positive and alcohol abuse creates more problems in the workplace? Copyright © 2007 South-Western. All rights reserved. 27

Employment Tests • Employment Test Ø 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. Ø Pre-employment testing can lead to lawsuits. Copyright © 2007 South-Western. All rights reserved. 28

Classification of Employment Tests • Cognitive Ability Tests Ø Aptitude tests v Measures of a person’s capacity to learn or acquire skills. Ø Achievement tests v Measures of what a person knows or can do right now. • Personality and Interest Inventories Ø “Big Five” personality factors: v Extroversion, agreeableness, conscientiousness, neuroticism, openness to experience. Copyright © 2007 South-Western. All rights reserved. 29

Figure 6– 7 Is That Your Final Answer? Verbal 1. What is the meaning of the word “surreptitious”? a. covert c. lively b. winding d. sweet 2. How is the noun clause used in the following sentence? “I hope that I can learn this game. ” a. subject c. 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. 25 c. 95 b. 30 d. 105 4. What is the value of 1442? a. 12 c. 288 b. 72 d. 20736 Answers: 1 a, 2 c, 3 d, 4 d Copyright © 2007 South-Western. All rights reserved. 30

Figure 6– 7 Reasoning Is That Your Final Answer? (cont’d) 5. ______ is to boat as snow is to ______. a. Sail, ski c. Water, ski b. Water, winter d. 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: 5 c, 6 c, 7 b Copyright © 2007 South-Western. All rights reserved. 31

Figure 6– 8 CPI Personality Facets and Sample Items • Agreeableness Ø Trust—I believe people are usually honest with me. • Conscientiousness Ø Attention to detail—I like to complete every detail of tasks according to the work plans. • Extroversion Ø Adaptability—For me, change is exciting. • Neuroticism Ø Self-confidence—I am confident about my skills and abilities. • Openness to Experience Ø Independence—I tend to work on projects alone, even if others volunteer to help me. 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. Copyright © 2007 South-Western. All rights reserved. 32

Classification of Employment Tests (cont’d) • Physical Ability Tests Ø Must be related to the essential functions of the job. • Job Knowledge Tests Ø An achievement test that measures a person’s level of understanding about a particular job. • Work Sample Tests Ø Require the applicant to perform tasks that are actually a part of the work required on the job. Copyright © 2007 South-Western. All rights reserved. 33

The Employment Interview • Why the interview is so popular: Ø It is especially practical when there are only a small number of applicants. Ø It serves other purposes, such as public relations Ø Interviewers maintain great faith and confidence in their judgments. Copyright © 2007 South-Western. All rights reserved. 34

Interviewing Methods • Nondirective Interview Ø The applicant determines the course of the discussion, while the interviewer refrains from influencing the applicant’s remarks. • Structured Interview Ø An interview in which a set of standardized questions having an established set of answers is used. Copyright © 2007 South-Western. All rights reserved. 35

Interviewing Methods (cont’d) • Situational Interview Ø 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) Ø An interview in which an applicant is asked questions about what he or she actually did in a given situation. • Panel Interview Ø An interview in which a board of interviewers questions and observes a single candidate. Copyright © 2007 South-Western. All rights reserved. 36

Interviewing Methods (cont’d) • Computer Interview Ø Using a computer program that requires candidates to answer a series of questions tailored to the job. Ø Answers are compared either with an ideal profile or with profiles developed on the basis of other candidates’ responses. • Video interviews Ø 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. Copyright © 2007 South-Western. All rights reserved. 37

Highlights in HRM 2 Copyright © 2007 South-Western. All rights reserved. 38

Figure 6– 9 Variables in the Employment Interview Copyright © 2007 South-Western. All rights reserved. 39

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 Copyright © 2007 South-Western. All rights reserved. 40

Diversity Management: Are Your Questions Legal • No questions are expressly forbidden. Ø Questions related to race, color, age, religion, sex, or national origin can be hazardous. Ø Questions are acceptable if job-related, asked of everyone, and do not discriminate against a protected class (e. g. , females). Ø Consult EEOC and FEP information when constructing guidelines for interviewers. Copyright © 2007 South-Western. All rights reserved. 41

Figure 6– 10 “Can-Do” and “Will-Do” Factors in Selection Decisions Copyright © 2007 South-Western. All rights reserved. 42

Reaching a Selection Decision • Selection Considerations: Ø Should individuals to be hired according to their highest potential or according to the needs of the organization? Ø At what grade or wage level to start the individual? Ø Should selection be for employee- job match, or should advancement potential be considered? Ø Should those not qualified but qualifiable be considered? Ø Should overqualified individuals be considered? Ø What effect will a decision have on meeting affirmative action plans and diversity considerations? Copyright © 2007 South-Western. All rights reserved. 43

Selection Decision Strategies Clinical Approach Subjectivity Statistical Approach Objectivity Compensatory Model - Average Multiple Cutoff Model - Minimum Multiple Hurdle Model- Sequential Copyright © 2007 South-Western. All rights reserved. 44

Selection Decision Models • Compensatory Model Ø Permits a high score in one area to make up for a low score in another area. • Multiple Cutoff Model Ø Requires an applicant to achieve a minimum level of proficiency on all selection dimensions. • Multiple Hurdle Model Ø Only applicants with sufficiently high scores at each selection stage go on to subsequent stages in the selection process. Copyright © 2007 South-Western. All rights reserved. 45

Selection Process (cont’d) • Selection Ratio Ø The number of applicants compared with the number of people to be hired. • Cutoff Score Ø The point in a distribution of scores above which a person is considered and below which a person is rejected. Copyright © 2007 South-Western. All rights reserved. 46

Figure 6– 11 Test Score Scatterplot with Hypothetical Cutoffs Copyright © 2007 South-Western. All rights reserved. 47

Selection Process (cont’d) • Final Decision Ø Selection of applicant by departmental or immediate supervisor to fill vacancy. Ø Notification of selection and job offer by the human resources department. Copyright © 2007 South-Western. All rights reserved. 48

Key Terms • achievement tests • aptitude tests • behavioral description interview (BDI) • compensatory model • concurrent validity • construct validity • content validity • criterion-related validity • cross-validation • multiple cutoff model Copyright © 2007 South-Western. All rights reserved. • • • multiple hurdle model nondirective interview panel interview predictive validity reliability selection ratio situational interview structured interview validity generalization 49