Personnel Decision Slides

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Yield Pyramid
Hires
5
Offers
10
Interviews
40
Invites
60
Applicants
240
Adapted from R.H. Hawk, The Recruitment Function (New York: American Management
Association, 1967).
Recruitment Sources (Techniques)
• In-House (e.g., hiring or promotion from within the organization)
• Newspapers, Trade/Professionals Publications
• Outside Companies (Headhunters, Employment/Temp Agencies, Executive Search
Firms
• Job or College Fairs
•
Internet-based
• Private sites (e.g., Monster)
• Professional Organizations
• Company web site
Some Factors in Considering Recruiting Sources
• Cost
• Time Requirements
• Number and Quality of Applicants
• Type of Job (e.g., manual labor, managerial)
• Type of Applicant (knowledge, skills, demographic and minority
representation)
Other Recruitment Issues
Recruiter Characteristics --• Demographics (e.g., gender, race, age)
• Functional job area (similarity to job being recruited)
• Personality (e.g., warmth, enthusiasm, supportive, personable)
Administration of Recruitment --• Promptness of follow-up contact (short timeframe is best)
• Amount of information requested of applicant (more information = less #
of applicants)
Organizational Emphasis on Recruitment
• Money and time spent on recruiting by HR = 16%
• Evaluation of recruitment effectiveness (often limited to criteria such
as meeting deadlines)
• Extent of recruiter training (most not trained; less than half of
organizations used formal, standardized training programs)
Realistic Job Preview Effects
PERCEPTION OF HONESTY
AND CARING
RJP
VACCINATION OF
EXPECTATIONS
ROLE
CLARITY
COPING MECHANISMS
DEVELOP FOR
NEW JOBS
SELF SELECTION
INTERNAL
FOCUS OF
CONTROL
COMMITMENT TO CHOICE
OF ORGANIZATION
NEEDS ARE
MATCHED TO
ORGANIZATIONAL
CLIMATE
JOB SATISFACTION
JOB
PERFORMANCE
VOLUNTARY TURNOVER
INVOLUNTARY
TURNOVER
TENURE IN THE
ORGANIZATION
Realistic Job Preview!!!
Men wanted for hazardous journey. Low wages, bitter cold, long
hours of complete darkness. Safe return doubtful. Honour and
recognition in event of success.
~ Ernest Shackleton's advertisement for 1914 Trans-Antarctic Expedition
Test Utility Key Points
Selection Ratio
(SR) =
Job openings
n
N
Applicants
Test Validity [Criterion-related]: The extent to
which test scores correlate with job performance
scores [Range is from 0 to 1.0]
Proportion of “Successes” Expected Through the Use of Test of Given Validity
and Given Selection Ratio, for Base Rate .60.
(From Taylor & Russell, 1939, p. 576)
Selection Ratio (SR)
Validity
.05
.10
.20
.30
.40
.50
.60
.70
.80
.90
.95
.00
.05
.10
.15
.20
.60
.64
.68
.71
.75
.60
.63
.67
.70
.73
.60
.63
.65
.68
.71
.60
.62
.64
.67
.69
.60
.62
.64
.66
.67
.60
.62
.63
.65
.66
.60
.61
.63
.64
.65
.60
.61
.62
.63
.64
.60
.61
.61
.62
.63
.60
.60
.61
.61
.62
.60
.60
.60
.60
.61
.25
.30
.35
.40
.45
.78
.82
.85
.88
.90
.76
.79
.82
.85
.87
.73
.76
.78
.81
.83
.71
.73
.75
.78
.80
.69
.71
.73
.75
.77
.68
.69
.71
.73
.74
.66
.68
.69
.70
.72
.65
.66
.67
.68
.69
.63
.64
.65
.66
.66
.62
.62
.63
.63
.64
.61
.61
.62
.62
.62
.50
.55
.60
.65
.70
.93
.95
.96
.98
.99
.90
.92
.94
.96
.97
.86
.88
.90
.92
.94
.82
.84
.87
.89
.91
.79
.81
.83
.85
.87
.76
.78
.80
.82
.84
.73
.75
.76
.78
.80
.70
.71
.73
.74
.75
.67
.68
.69
.70
.71
.64
.64
.65
.65
.66
.62
.62
.63
.63
.63
.75
.80
.85
.90
.95
1.00
.99
1.00
1.00
1.00
1.00
1.00
.99
.99
1.00
1.00
1.00
1.00
.96
.98
.99
1.00
1.00
1.00
.93
.95
.97
.99
1.00
1.00
.90
.92
.95
.97
.99
1.00
.86
.88
.91
.94
.97
1.00
.81
.83
.86
.88
.92
1.00
.77
.78
.80
.82
.84
.86
.71
.72
.73
.74
.75
.75
.66
.66
.66
.67
.67
.67
.63
.63
.63
.63
.63
.63
Note: A full set of tables can be found I Taylor and Russell (1939) and in McCormick and Ilgen (1980, Appendix B).
Selection Ratio Example
Mean Standard Criterion Score of Accepted Cases in Relation to Test Validity and Selection Ratio
(From Brown & Ghiselli, 1953, p. 342)
Validity Coefficient
Selection
Ratio .00 .05 .10 .15 .20 .25 .30 .35 .40 .45 .50 .55 .60 .65 .70 .75 .80 .85 .90 .95 1.00
.05
.10
.15
.20
.25
.30
.35
.40
.45
.50
.50
.60
.65
.70
.75
.80
.85
.90
.95
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.10
.09
.08
.07
.06
.06
.05
.05
.04
.04
.04
.03
.03
.02
.02
.02
.01
.01
.01
.21
.18
.15
.14
.13
.12
.11
.10
.09
.08
.07
.06
.06
.05
.04
.04
.03
.02
.01
.31
.26
.23
.21
.19
.17
.16
.15
.13
.12
.11
.10
.09
.07
.06
.05
.04
.03
.02
.42
.35
.31
.28
.25
.23
.21
.19
.18
.16
.14
.13
.11
.10
.08
.07
.05
.04
.02
.52
.44
.39
.35
.32
.29
.26
.24
.22
.20
.18
.16
.14
.12
.11
.09
.07
.05
.03
.62
.53
.46
.42
.38
.35
.32
.29
.26
.24
.22
.19
.17
.15
.13
.11
.08
.06
.03
.73
.62
.54
.49
.44
.40
.37
.34
.31
.28
.25
.23
.20
.17
.15
.12
.10
.07
.04
.83
.70
.62
.56
.51
.46
.42
.39
.35
.32
.29
.26
.23
.20
.17
.14
.11
.08
.04
.94
.79
.70
.63
.57
.52
.48
.44
.40
.36
.32
.29
.26
.22
.19
.16
.12
.09
.05
1.04
.88
.77
.70
.63
.58
.53
.48
.44
.40
.36
.32
.28
.25
.21
.18
.14
.10
.05
1.14
.97
.85
.77
.70
.64
.58
.53
.48
.44
.40
.35
.31
.27
.23
.19
.15
.11
.06
1.25
1.05
.93
.84
.76
.69
.63
.58
.53
.48
.43
.39
.34
.30
.25
.21
.16
.12
.07
1.35
1.14
1.01
.91
.82
.75
.69
.63
.57
.52
.47
.42
.37
.32
.27
.22
.18
.13
.07
1.46
1.23
1.08
.98
.89
.81
.74
.68
.62
.56
.50
.45
.40
.35
.30
.25
.19
.14
.08
1.56
1.32
1.16
1.05
.95
.87
.79
.73
.66
.60
.54
.48
.43
.37
.32
.26
.20
.15
.08
1.66
1.41
1.24
1.12
1.01
.92
.84
.77
.70
.64
.58
.52
.46
.40
.33
.28
.22
.16
.09
1.77
1.49
1.32
1.19
1.08
.98
.90
.82
.75
.68
.61
.55
.48
.42
.36
.30
.23
.17
.09
1.87
1.58
1.39
1.26
1.14
1.04
.95
.87
.79
.72
.65
.58
.51
.45
.38
.32
.25
.18
.10
1.98
1.67
1.47
1.33
1.20
1.10
1.00
.92
.84
.76
.68
.61
.54
.47
.40
.33
.26
.19
.10
2.08
1.76
1.55
1.40
1.27
1.16
1.06
.97
.88
.80
.72
.64
.57
.50
.42
.35
.27
.20
.11
Basic Orientation Principles
1) The 1st day on the job is crucial! It is important to manage it well
and make it a positive time. Employees remember it for years,
particularly if it is an unpleasant experience
2) Impressions formed during the first 60-90 days are difficult to
alter. So, it is important to make this time a positive experience
for newly-hired employees
3) Ensure that new employees see how their job fits within the
framework of the overall organization. (As such, the
organization needs to communicate information about it’s goals
and objectives)
4) Avoid ‘information overload.” It’s best to provide the new
employee with information in reasonable amounts and in a
meaningful sequence
5) Ensure that the new employee’s immediate supervisor is
ultimately responsible for the orientation program
6) Social and family adjustment concerns should be addressed in
the orientation program
Regression
Simple Regression Equation

Multiple Regression

y = a + b 1x1 + b2x2 + b3x3 …..
y = a + bx
Test Score
Predicted
Score
Slope
y-intercept
Predicted
Score
y-intercept
Basic Process:
• All applicants take every test.
• Scores are weighted and combined to yield a predicted score for each applicant.
• Applicants scoring above a set cutoff score are considered for hire
Key Points:
• Regression is a compensatory approach. That is, a high score on one test can
compensate for a low score on another.
• Best for tests to not relate to each other, but relate highly to the criterion.
Weights
Compensatory Example
How Four Job Applicants with Different Predictor Scores Can Have the
Same Predicted Criterion Score Using Multiple Regression Analysis
Applicant
Score on X
Score on X
1
2
Predicted
Criterion Score
A
25
0
100
B
0
50
100
C
20
10
100
D
15
20
100

Note: Based on the equation Y = 4X + 2X.
1
2
Independent Predictors
r
r
1c
Predictor 1
2c
Criterion
Predictor 2
R2 = r
2
1c
c.12
For example, if r = .60 and r
1c
+r
2
2c
= .50, then
2c
2
R c.12 =
2
2
(.60) + (.50)
= .36 + .25
= .61
Interrelated Predictors
Criterion
r
r
1c
2c
r
12
Predictor 1
2
Predictor 2
2
r 1c r 2c - 2r 12r 1cr 2c
2
R c.12 =
1 - r2
12
For example, if the two predictors intercorrelate .30, given the validity coefficients from the previous example
And r = .30, we will have
12
2
2
R c.12 =
2
(.60) + (.50) - 2(.30)(.60)(.50)
1 – (.30)2
= .47
Multiple Cutoff Approach
WAB
Paper & Pencil
Math Test
Paper & Pencil
Aptitude Test
100
x
100
x
100
Pass
Pass
Pass
Cutoff
score
Cutoff
score
x
Cutoff
score
Fail
Fail
Fail
0
0
0
Basic Process:
• All applicants take every test.
• Applicant must achieve a passing score on every test to be considered for hire.
Key Point: A multiple cut-off approach can lead to different decisions regarding
who to hire versus using a regression approach.
Multiple Hurdle Approach
Paper & Pencil
Knowledge Test
Pass
Interview
100
xxxxx
xxxxx
Pass
100
xxxxx
xx
xxx
xxx
Eliminated
from the
selection
process
0
100
xxx
Pass
Cutoff
score
Cutoff
score
Fail
Work Sample
Test
Eliminated
from the
selection
process
xxx
Fail
Fail
xxx
0
Eliminated
from the
selection
process
Cutoff
score
0
Basic Process:
• All applicants take the 1st test.
• Pass/fail decisions are made on the 1st and subsequent tests and only those who pass can continue on
to the next test [a sequential process].
Key Point:
Useful when a lengthy, costly, and complex training process is required for the position.
Banding
Basic concept: Small differences in test scores might reasonably
be due to measurement error. Therefore, you do not want
small differences in test scores to trump all other consideration in
ranking individuals in hiring.” (p. 82).
Banding (cont.)
SED Banding Types
Both use the top score to establish the top of the band
Fixed
98 ..
94 .
92 ..
88 ..
.
..
All those from the band
are selected before those
from the lower band
Example of a band of 6 points
Sliding
98 .
94 ...
92 .
..
88 ..
.
..
Bands slide down
after each person is
removed from the top
(bands re-established)
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