© 2003 Prentice Hall, Inc.
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Chapter 5
Employee Testing and Selection
Instructor presentation questions: docwin@tampabay.rr.com
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© 2003 Prentice Hall, Inc.
What You Should Be
Able to Do (Cont.)
 Describe the overall selection process
 List the ethical and legal issues in testing
 Explain how you would go about
validating a test
 List eight tests you could use for
employee selection, and how you would
use them
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© 2003 Prentice Hall, Inc.
What You Should Be
Able to Do (Cont.)
 Cite and illustrate our testing guidelines
 Explain what an assessment center is
 Explain the key points to remember in
conducting background investigations
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© 2003 Prentice Hall, Inc.
Employee Testing and
Selection
Employee testing and selection is the
use of various tools and techniques to
select the best candidates for the job.
These tools cover the selection process,
basic testing techniques, background
and reference checks, ethical and legal
questions in testing, types of tests, and
work samples and simulations.
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© 2003 Prentice Hall, Inc.
Why Careful Selection Is
Important
 HR manager’s performance depends on
the performance of subordinates
 The cost to recruit and hire is high
 Legal implications of incompetent hiring
are costly and can result in
negligent hiring litigation
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How to Avoid Litigation
 Carefully scrutinize
 Get written okay
 Save records
 Reject applicants
 Balance privacy rights with ‘need to know’
 Take immediate action
© 2003 Prentice Hall, Inc.
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Testing Concepts
101
 Test validity checks whether or not a test
measures what it is supposed to measure
 Criterion
Both test validity
 Content
Test reliability = a test’s consistency or accuracy
Validity and reliability aid in effective applicant
selection
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Test Validity
 A typing test corresponds to an on-thejob behavior

Thematic apperception test asks a
person to interpret a picture (like that
shown below)
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Test Reliability
 Does the same test given to the same
person result in the same test outcome?
 Retest estimate
 Equivalent form estimate e.g. SAT
 Internal consistency or comparison
estimate
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Causes of Test Unreliability
 Questions may do poor job of sampling
the material
 Changes in testing condition may cause
errors
 More causes listed in the internet
appendix
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How to Validate a Test
1
Analyze job &
write description
2
Choose the
tests
Administer
3
tests
4
Relate scores &
criteria
5
Cross-validate
& revalidate
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© 2003 Prentice Hall, Inc.
1 Analyze Job &
Write Job Description
 Determine and specify predictors or
requirements necessary for successful
performance
 Define what you mean by success on
the job
 Write the job description and job
specification
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© 2003 Prentice Hall, Inc.
2 Choose the Tests
 Choose tests that measure attributes
needed for success and combine into a
test battery that measures an array of
possible predictors such as
aggressiveness, extroversion and
numerical ability
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Choose the
Tests
Available tests include:






Psychological
Intellectual
Technical
Aptitude
Interest inventories
Reliability inventories
Visit Applied Assessments






Clerical skills test
Telemarketing ability tests
Service ability tests
Management aptitude test
Team skills test
Sales ability test
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3 Give the Tests
Two formats
Concurrent validation
Predictive validation
 Give tests to employees
 Compare scores with
current performance
 Test applicant before
hiring
 Use alternate selection
technique to hire
 Compare real
performance with test
results – determines
suitability of test
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4 Relate Test Scores and
Criteria
 Does a statistical relationship exist between
the test scores and job performance?
Test Scores
Top 20%
Next 20%
Middle 20%
Next 20%
Expectancy Chart
Bottom 20%
0
50
100
Percent chances to be
a "High Performer"
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High job
performance
Low job
performance
Low Test Score
High Test Score
High Positive Correlation of Selection Test Scores
and Performance on Job
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High job
performance
Low job
performance
Low Test Score
High Test Score
Low Positive Correlation of Selection Test Scores
and Performance on Job
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High job
performance
Low job
performance
Low Test Score
High Test Score
High Negative Correlation of Selection Test Scores
and Performance on Job
© 2003 Prentice Hall, Inc.
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5 Cross-validate and
Revalidate
 To cross-validate, perform Steps 3 and 4 on a
new sample of employees
 An expert should revalidate the test
periodically
 To demonstrate content validity:


Do a careful job analysis that identifies the work
behavior required
Combine samples of these behaviors into a test
© 2003 Prentice Hall, Inc.
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Has 5 or more
years of
experience
Holds MBA
or more
High Interview
Test Score of
Scores
90 or More
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Multiple Cutoff Procedure
High Performance
B
A
C A
C
C
B
B
A
Predictor 1
Predictor 2
Predictor 3
Weighted Composite
Procedure
C
B
A
Predictor 1 + 2 + 3
© 2003 Prentice Hall, Inc.
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EEO Aspect of Testing
 Validity tests must meet Equal
Employment Opportunity Laws in two
key ways


Your tests are related to success or failure
on the job (validity)
Your tests don’t unfairly discriminate against
minority or non-minority subgroups
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© 2003 Prentice Hall, Inc.
Guidelines for a Testing
Program
 Use tests as supplements
 Validate tests with your own organization
 Analyze all your current hiring and
promotion standards
 Keep accurate records
Use a certified psychologist
Manage test conditions
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© 2003 Prentice Hall, Inc.
Test Takers Individual Rights
 Confidentiality
 Informed consent
 Expect that only qualified people will
interpret and have access to test results
 Expect the test is fair to all – no one has
answers in advance
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Perceived Fairness to Test
Takers
 Follow good test practices – a quiet,
monitored test room
 The “obviousness” of the line between
the selection procedure and the job
Graphology
Unfair
Honesty &
Personality
Neutral
Written
Ability
Biographical Interviews &
Information Work Sample
Favorable
Fair
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© 2003 Prentice Hall, Inc.
Privacy and
the Law
 Supreme court decisions protect us from
intrusive government action by setting limits on
disclosure of personal information
 Common law of torts precludes disclosure of
personal information outside the company
 Some states recognize common law as it
applies to invasion of privacy
© 2003 Prentice Hall, Inc.
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Guidelines for
Privacy
 Train your supervisors regarding
the importance of employee
confidentiality
 Adopt a “need to know” policy
 If you know your firm can’t keep
information confidential, you may
limit your liability by disclosing that
fact before testing
© 2003 Prentice Hall, Inc.
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Using Tests at Work
Are you prone
to
accidents at
work?
This test helps
you
rate your
chances
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Computerized Testing
Visit
Their tests reduce costs and raise quality
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Types of Tests
 Cognitive
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
Which shape has
the greatest area?
Intelligence quotient
Specific cognitive abilities or
aptitude
Motor and physical ability

Dexterity
Smoothest ride?
A, B, or C?
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Types of Tests
 Personality and interests

Interest inventories
Achievement
What is ‘tolerance’?
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Types of Tests
 Wonderlic personal characteristics inventory
measures general mental ability
 Predictive Index measures work-related
personality traits, drives, and behaviors
 Projective techniques like MAPS, HTP, and
Forer Structured Sentence Completion
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Even More About Tests!
 Effectiveness
 The “Big Five”
Interest Inventories
Achievement Tests
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Smart or Personable
 Both personality and intelligence drive careers
 When defining career success in terms of
intrinsic and extrinsic success,
conscientiousness predicted both
 Neuroticism negatively predicted extrinsic
success
 Intelligence positively predicted extrinsic
career success
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© 2003 Prentice Hall, Inc.
Work Sampling for
Employee Selection
 Work samples measure actual on-the-job
tasks
 Work sampling technique measure how
one performs some of the job’s basic
tasks
 Benefits include fairness to minorities,
accuracy, no invasion of privacy and
better predictor of performance
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© 2003 Prentice Hall, Inc.
Management Assessment
Centers
 A management assessment center is a
two to three-day simulation in which 10
to 12 candidates perform realistic
management tasks (like making
presentations) under the observation of
experts who appraise each candidate’s
leadership potential
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Typical MAC Exercises
 The In-basket
 Leaderless group discussion
 Management games
 Individual presentations
Objective tests
The interview
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Video Based Situational
Tests
 Presents candidate with several scenarios
Well, I’m glad you’re here.
Oh? Why is that?
Look at this place, that’s why! I take a day
off and come back to find this mess.
But I didn’t work late last night.
Maybe not but this has happened before.
© 2003 Prentice Hall, Inc.
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Video Based Situational
Tests
 If you were this associate what would you do?
a. Let the other associates responsible for the mess
know that you had to take the heat.
b. Straighten up the department, and try to reason with the
manager later.
c. Suggest to the manager that he talk to the other
associates who made the mess.
d. Take it up with the manager’s boss.
e. Quit!
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© 2003 Prentice Hall, Inc.
Other Selection
Techniques
 Background investigations are effective
because they verify factual information
and may uncover criminal records
 Reference checking is harder as several
federal laws give rejected applicant rights
to know the information which might
result in litigation
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Reference Check Form
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Reference Check Form
(Cont.)
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Giving and Getting
References
 Giving references:
know the law
 Common law
 Defamation
 Making background
checks more useful
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© 2003 Prentice Hall, Inc.
Pre-employment Information
Services
 Services store and search databases to
delve into candidate criminal, driving,
work, and credit histories
 Various EEO laws discourage or prohibit
their use in candidate screening
 Non-EEO laws restrict their use
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© 2003 Prentice Hall, Inc.
Guidelines for
Using Background
Information Checks
 Check all applicable state laws
 Review the impact of federal equal
employment laws
 Remember the Federal Fair Credit Reporting
Act
 Do not obtain information that you’re not going
to use
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© 2003 Prentice Hall, Inc.
Guidelines for
Using Background
Information Checks
 Remember that using arrest information will be
highly suspect
 Avoid blanket policies
 Use information that is specific and job related
 Keep information confidential and up to date
 Never authorize an unreasonable investigation
© 2003 Prentice Hall, Inc.
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Honesty Testing
 The polygraph can no longer be
used routinely
 Paper and pencil honesty
tests are widely used to find
personality flaws
 Research shows that
honesty testing can spot
problems
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© 2003 Prentice Hall, Inc.
What’s an Employer to Do?
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Ask blunt questions
Be good listeners
Do a credit check
Check all personal and employment
references
 Use paper & pencil honesty as well as psych
tests
 Test for drugs
 Establish a search and seizure policy
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Hand Writing Tests
 Graphology may not be used as a
screening test as it is not reliable
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Physical Exams
 Once hired, a physical examination is the next
step in the selection process
 Used to verify applicant meets physical
demands of the job
 Establish a baseline for future insurance
claims
 Reduce absenteeism and accidents
 Must be careful not to violate ADA laws
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Substance Abuse Screening
 Many employers use drug testing although it is
not always reliable and can be ‘fooled’
 May raise ethical issues
 May not be legal in some cases as it violates
right to privacy
 A positive test leads to
termination or a refusal to hire
© 2003 Prentice Hall, Inc.
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High Performance Insight
The problem: High turnover
Franciscan Health System operates skilled nursing care
facilities in Ohio. It faced several problems, including high
turnover of 146%/year.
Their solution: Cut turnover to 71%/year
They devised a nursing assistant test battery
consisting of three tests:
• An employment inventory
• A personality survey
• A job preferences inventory
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© 2003 Prentice Hall, Inc.
City Garage Strategic HR
 Rapidly growing city garage needed a better
process than an application form and short
interview
 Employee selection was haphazard with some
managers being better at hiring than others
 Selected Thomson International’s Personality
Profile Analysis program as a third step in their
hiring process
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Complying With
Immigration Law




Hire only citizens & aliens lawfully authorized
Advise new job applicants of your policy
Complete & sign the verification form I-9
Examine documentation presented by new
employees
 Retain the form
 Present the form for inspection by INS or DOL
officers
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© 2003 Prentice Hall, Inc.
Summary of Chapter 5
 Testing for screening and job candidate
selection
 Test validity (including criterion and
content)
 Reliability or consistency of tests
 The many types of personnel tests
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© 2003 Prentice Hall, Inc.
Summary of Chapter 5
(Cont.)
 The 5 steps to make a selection test useful
 EEO laws regarding tests and some basic test
guidelines
 Work sampling selection techniques
 Management Assessment Centers
 And background and reference checks
 Whew!