Human Resource Management Gaining a Competitive Advantage Chapter 6 Selection and Placement McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, All Rights Reserved. 1-1 Reliability • Reliability is the degree to which a measure of physical or cognitive abilities, or traits, is free from random error. – Knowing how scores on the measure at one time relate to scores on the same measure at another time refers to test-retest reliability. 6-2 Validity • Validity is the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. • Criterion-related validation is a method of establishing the validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores. The types include: – Predictive validation – Concurrent validation 6-3 Criterion-Related Validity Predictive Test Applicants Measure Performance of those Hired TIME Concurrent Test Existing Employees Measure their Performance TIME 6-4 Content Validation • Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job. – Best for small samples – Content validity is achieved primarily through a process of expert judgment 6-5 Generalizability • Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts. • Three contexts include: – different situations – different samples of people – different time periods 6-6 Utility • Utility is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations. • It is impacted by reliability, validity, and generalizability. 6-7 Legality • All selection methods must conform to existing laws and legal precedents. • Three acts have formed the basis for a majority of the suits filed by job applicants: – Civil Rights Act of 1964 and 1991 – Age Discrimination in Employment Act of 1967 – Americans with Disabilities Act of 1991 6-8 Types of Selection Methods Interviews Honesty Tests and Drug Tests Work Samples Personality Inventories References and Biographical Data HR JOBS Physical Ability Tests Cognitive Ability Tests 6-9 Interviews • 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. • The utility of an interview can be increased by the following suggestions: – Interviews should be structured, standardized, and focused on goals oriented to skills and behaviors that are observable. – Interviewers should plan to come out of each interview with a quantitative rating. – Interviewers should also have a structured note-taking system that will aid recall when it comes to satisfying the ratings. 6-10 Situational Interview • A situational interview confronts applicants on specific issues, questions, or problems that are likely to arise on the job. • These interviews consist of: – experience-based questions – future-oriented questions 6-11 Other Selection Methods • References, Biographical data, and Application Blanks gather background information on candidates. • Physical ability tests are relevant for predicting not only job performance but occupational injuries and disabilities. Types of physical ability tests include: – – – – – muscular tension, power, and endurance cardiovascular endurance flexibility balance coordination 6-12 Other Selection Methods • A cognitive ability test differentiates individuals based on their mental rather than physical capacities. Abilities most commonly assessed are: – verbal comprehension – quantitative ability – reasoning ability • Personality inventories categorize individuals by their personality characteristics. • Work samples simulate the job in miniaturized form. 6-13 “Inside the Head of an Applicant” • 89 of Fortune 100 use Myers-Briggs Personality Type Indicator in hiring and promoting – Experts concede test seems to capture valid aspects of personality, but say it’s too ‘blunt’ • “Most people are blends” 6-14 “Inside the Head of an Applicant” • Minnesota Multiphasic Personality Inventory (MMPI) widely used for substance abuse, other symptoms of social maladjustment – Psychologists say test has value, but tends to flag otherwise normal test takers as pathological (false positives) • 60% of U.S. police depts use it, as do industries ranging from banking to retail • In June 2005, 7th Circuit Court of Appeals ruled in class-action suit that Rent-A-Center violated ADA by requiring applicants to take MMPI – “likely had the effect of excluding employees with (mental) disorders from promotions” – In 1996, test measuring trustworthiness withstood claim against Borg-Warner Protective Services, as judge ruled test was not medical examination under ADA 6-15 “Inside the Head of an Applicant” • More accurate generation of personality tests has now hit market, derived from empirical studies about how types of people behave in certain situations – Unlike MMPI, designed to measure normal personalities • Scientists digging even deeper, focusing on genetic and neural predictors of personality – Brain scans have shown people differ profoundly in their brain ‘wiring’ • EEOC guidelines indicate er can use construct validity studies as evidence that specific test measures personality traits identified as important to performance of specific job – Hiring consultants also recommend concurrent validation » Source: Newsweek, 2/21/05; Workforce Management, 9/05 6-16 Honesty Tests • The Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharmaceutical and security guard suppliers. • Paper-and-pencil honesty testing attempts to assess the likelihood that employees will steal. – Since these tests are new, there is little evidence on their effectiveness. 6-17 Drug Tests • Drug-use tests tend to be reliable and valid. • The major controversies of drug tests includes: – Is it an invasion of privacy – Is it an unreasonable search and seizure – Is it a violation of due process • Tests should be administered systematically to all applicants applying for the same job. • Testing is likely to be more defensible when there are safety hazards associated with the failure to perform. • Test results should be reported to the applicant, who should have an avenue to appeal. 6-18 “For Some, Online Persona Undermines Resume” • When small Chicago consulting Co was looking to hire summer intern, Co president went online to check on promising candidate who had just graduated from U of Illinois – At Facebook, found web page that described candidate’s interests as “smokin’ blunts,” shooting people, and obsessive sex, all described in vivid slang • Candidate was done – “What kind of judgment does this person have?” • Orgs looking for ‘red flags’ » Source: New York Times, 6/11/06 • USI mngt major, Jr., 3.1 GPA – Facebook picture shows student holding a beer with two beer cans balanced on her head – Interests: “going to bars, drinking beer, drinking whiskey, drinking any alcohol, partying with my friends, going to the haute, beer pong, beer bonging, edward 40 hands, drinking games with cards or any we make up randomly, so pretty much anything that involves drinking” 6-19 “For Some, Online Persona Undermines Resume” • According to survey of 3,100 Ers by CareerBuilder.com, 22% of hiring Ers say they use Web sites such as Facebook and MySpace to research job candidates – Double the percentage in 2006 • Of the respondents who used a social networking site to check candidates, 34% said they found information that caused them to remove candidate from consideration – Candidate posted information about drinking or using drugs, provocative or inappropriate pictures or information, poor communication skills, bad-mouthed former Er or co-worker, used discriminatory remarks, screen name was unprofessional, was linked to criminal behavior, revealed confidential information about previous Ers • 24% of hiring managers said they found content that gave candidate an edge – Great communication skills, person was good fit for Co’s culture, personal site illustrated professional image, showed wide range of interests, personal profile was creative » Source: WorldatWork, 9/12/08 6-20 “As Background Checks Proliferate, Ex-Cons Face a Lock on Jobs” • More businesses using criminal-background checks to guard against negligent-hiring lawsuits, theft of company assets, even terrorism – About 80% of big Ers in U.S. now do such checks (up from 56% in 1996) – Some 630,000 people get out of state and federal prisons each year w/ criminal records • Almost 30% of adult Americans had state criminal arrest record in 2003 • Ethical and legal implications – Minorities in particular could experience adverse impact • Black males incarcerated at five times rate of white males, Hispanics two times • Blacks w/ criminal records pay bigger penalty in job market (see research cited in Understanding Equal Opportunity and the Legal Environment) » Source: Wall Street Journal, 8/26/04; MSNBC.com, 8/14/05 6-21 Reference Checking • 36 states (including IN) have laws that grant ers some form of civil immunity when they disclose information about current or past ee in response to request for reference – But, suggested that many state laws contain loopholes that plaintiff lawyers can attack when pursuing defamation lawsuit – Although truth is a defense, ers must still be careful about what information is provided and how • There is both a duty to be accurate and a duty not to misrepresent information » Source: HR News, 6/24/05 6-22