PART TWO
RECRUITMENT AND PLACEMENT
C H A P T E R
T
Employee Testing
And
Selection
S i x
6
Lecture Outline
Strategic Overview
Why Careful Selection is Important
Basic Testing Concepts
Validity
Reliability
How to Validate a Test
EEO Aspects of Testing
Test Takers’ Individual Rights and Test Security
The Issue of Privacy
Using Tests at Work
Computer-Interactive Testing
Types of Tests
Tests of Cognitive Abilities
Tests of Motor and Physical Abilities
Measuring Personality and Interests
Achievement Tests
Web-based Testing
Work Samples and Simulations
Work Sampling for Employee Selection
Management Assessment Centers
Video-Based Situational Testing
The Miniature Job Training and Evaluation
Approach
Background Investigations and Other Selection
Background Investigations and Reference Checks
Using Pre-employment Information Services
Background Information
The Polygraph and Honesty Testing
Graphology
Physical Examination
Substance Abuse Screening
Complying with Immigration Law Post 9/11
In Brief:
This chapter gives an
overview of the selection process,
testing concepts, types of tests, and
selection techniques. It also addresses
legal and ethical questions surrounding
the area of testing and selection.
Interesting Issues: Most companies
desire reference and background
information to make employment
decisions, however, most companies
also have policies against giving out
any information on current or past
employees beyond basic job titles and
dates of employment. Students need to
see the tug-of-war between privacy
rights and employer needs for
background and predictive information.
ANNOTATED OUTLINE
I.
Why Careful Selection Is Important
Slecting the right employees is important for three main reasons. 1)
employees with the right skills and attributes will perform more effectively; 2)
the cost of making a wrong hire can become exhorbitant considering the
time and money invested in the selection and training process; and 3) the
legal implications of incompetent or negligent hiring
II.
Basic Testing Concepts
A. Reliability refers to the consistency of scores obtained by the same
person when retested with the identical or equivalent tests.
B. Validity refers to evidence that performance on a test is a valid predictor
of subsequent performance on the job.
1.
Criterion Validity shows that scores on the test (predictors) are
related to job performance.
2.
Content Validity shows that the test contains a fair sample of the
tasks and skills actually needed for the job in question.
C. How to Validate a Test
1.
Analyze the Job and write job descriptions and job specifications.
2.
Choose the Tests that measure the attributes (predictors) important
for job success.
3.
Administer the Test selected to old or new employees for concurrent
and predictive validation.
4.
Relate Test Scores and Criteria through a correlation analysis, which
shows the degree of statistical relationship between (1) scores on
the test and (2) job performance.
5.
Cross-validate and Revalidate by performing steps 3 and 4 on a new
sample of employees. Testing Guidelines: 1) use tests as
supplements; 2) validate the tests; 3) analyze all your current hiring
and promotion standards; 4) keep accurate records; 5) begin your
validation program now; 6) use a certified psychologist; and 7) test
conditions are important.
D. Equal Employment Opportunity Aspects of Testing – Employers must be
able to prove (1) that their tests are related to success or failure on the
job (validity) and (2) that their tests don’t unfairly discriminate against
minority or nonminority subgroups.
1.
Alternatives – Employers have three alternatives: choose an
alternative selection procedure; show that the test is valid; or monitor
the selection test to see if it has disparate impact.
2. Gender issues in testing - gender socialization influences men's and
women's test results, for example it can influence the occupational
interests for which candidates express a preference.
E.
Test Takers Individual Rights and Test Security – Test takers have
certain rights to privacy and information under the American
Psychological Association’s (APA) standard for educational and
psychological tests.
1. Research Insight – One study found that students were more
favorable when they felt the employer had the right to obtain
information with a particular technique, and when the procedure was
widely used in the industry.
The New Workplace: Gender Issues in Testing. Employers
using selectiion testing should realize that test results may
be distorted by gender.
Know Your Employment Law: The Issue of Privacy. In
addition to the APA’s test privacy and security standard,
certain other protections regarding an employee’s right to
privacy are embedded in U.S. law.
Guidelines for
employers to follow include 1)training supervisors regarding
the importance of employee confidentiality; 2) adopt a "need
to know" policy"; and 3) disclose procedures.
F.
Using Tests at Work – Various types of tests are widely used by
employers today.
G. Computer-Interactive Training is increasing replacing pencil-and-paper
and manual tests.

III.
NOTES
Educational Materials to Use
Types of Tests
A. Tests of Cognitive Abilities – Cognitive tests include tests of general
reasoning ability (intelligence) and tests of specific mental abilities like
memory and inductive reasoning.
1.
Intelligence Tests are tests of general intellectual abilities ranging
from memory, vocabulary, verbal fluency to numerical ability.
2.
Specific Cognitive Abilities (aptitude) include inductive and deductive
reasoning, verbal comprehension, memory, and numerical ability.
B. Tests of Motor and Physical Abilities – Employers may use various tests
to measure such motor abilities as finger dexterity, manual dexterity, and
reaction time. They may also want to measure such physical abilities as
static strength, dynamic strength, body coordination and stamina.
C. Measuring Personality and Interests – can be used to assess personal
characteristics as attitude, motivation, and temperament.
1.
Effectiveness – The difficulties notwithstanding, personality tests can
help companies do a better job of screening.
2. The "Big Five" - Industrial psychologists emphasize five personality
dimensions as they apply to personnel testing: extroversion,
emotional stability, agreeableness, conscientiousness, and openness
to
experience.
3. Interest Inventories compare one’s interests with those of people in
various occupations.
D. Achievement Tests – measure what a person has learned.
Web-based Testing – is increasingly used for testing and screening
applicants.
E.

IV.
NOTES
Educational Materials to Use
Work Samples and Simulations
A. Work Sampling for Employee Selection
1.
Rationale for Work Sampling – Work sampling technique measures
how a candidate actually performs some of the job’s basic tasks
making it harder for applicants to fake answers. This method tends to
be fairer and exhibit better validity than test designed to predict
performance.
2.
Developing a Work Sampling Procedure – The basic procedure is to
choose several tasks crucial to performing the job in question and to
test applicants on those identified tasks.
B. Management Assessment Centers
A two-to-three-day simulation in which 10 to 12 candidates perform
realistic management tasks, under the observation of experts who
appraise each candidate’s potential.
C. Video-Based Situational Testing typically presents the candidate with
several scenarios, each followed by a multiple-choice question.
D. The Miniature Job Training and Evaluation Approach involves training
candidates to perform a sample of job tasks, and evaluating their
performance.
When You’re on Your Own:
HR for Line Managers and
Entrepreneurs. Employee Testing and Selection. – In many firms,
the HR department does little more than preliminary prescreening
and followup with background checks, drug, and physical exams.
Managers who want to screen some of their own job applicants more
formally can devise and use screening tools with obvious face
validity. Steps should be taken to keep within the guidelines
discussed in this chapter. There are a number of tools available that
are easy to administrate.
V.
Background Investigations and Other Selection Techniques
A. Background Investigations and Reference Checks – Most employers
check and verify an applicant’s background information and references,
including driving record, check for criminal charges or convictions, and
credit check.
1. Effectiveness – Background checks tend to be an inexpensive and
straightforward way to verify factual information about the applicant.
But, they can backfire. Laws (like the Fair Credit Reporting Act of
1970) increase the likelihood that rejected applicants will have
access to the background information.
2. Making Background and Checks More Useful – Employers should:
include on their application forms a statement for applicants to sign
explicitly authorizing a background check; rely more on telephone
references than written ones; and use local investigation firms. An
example of a reference checking form is illustrated in figure 6-7.
Know Your Employment Law: Giving References. –
Federal laws that affect references include the Privacy Act of
1974, the Fair Credit Reporting Act of 1970, the Family
Education Rights, Privacy Act of 1974, and Buckley
Amendment of 1974. Being sued for defamation is an
increasing concern for employers.
Improving Productivity through HRIS - Automated
Applicant Tracking Systems and Applicant Screening These systems are an example of technology use in HR.
These systems help companies screen applicants in three
ways: 1)"Knock out" applicants who do not meet minimum,
non-negotiable job requirements; 2) Test and screen
applicants online including web-based skills testing,
cognitive skills testing, and psychological testing; and 3)
discover "hidden talents" by identifying talents in the
candidate pool that lend themselves to job matches at the
company that the applicant didn't know existed when he
applied. Minimum functionality requirements of ATS are
discussed here.
B. Using Preemployment Information Services
Know Your Employment Law: Background Information –
Various federal and state laws govern how employers
acquire and use applicants' and employees' background
information. Complaince involves four steps: 1) Disclosure
and authorization; 2) Certification; 3) Providing copies of the
reports; and 4) Notice after adverse action.
C. The Polygraph and Honesty Testing
A polygraph (lie detector) is a device that measures physiological
changes like increased perspiration.
Current law prevents most
employers engaged in interstate commerce from using tests for
preemployment screening or during the course of employment.
1.
Paper-and-Pencil Tests – Paper-and-pencil honesty tests are
psychological tests designed to predict job applicants’ proneness to
dishonesty and other forms of counter-productive behavior.
2.
What Employers Can Do – Employers can: ask blunt questions;
listen, rather than talk; ask for a credit check; check all references;
consider paper-and-pencil honesty tests and psychological tests as a
part of your honesty-screening program; test for drugs; establish a
search-and-seizure policy; and conduct searches.
D. Graphology (handwriting analysis) assumes that handwriting reflects
basic
personality tests.
E. Physical Examination – Once an offer is made and the person is hired, a
medical exam is usually the next step in the selection process.
F. Substance Abuse Screening – Because drug abuse is a serious problem
for
employers, it is common practice for most employers to conduct drug
screening
just before employees are formally hired.
Know Your Employment Law: Drug Testing - This
dialogue describes the federal laws affecting workplace drug
testing, including ADA, the Drug Free WorkPlace Act of
1988, the Department of Transportation Workplace
regulations and the Federal Rehabilitation Act of 1973.
G. Complying with Immigration Law Post 9/11– Under the Immigration
Reform and Control Act of 1986, employees hired in the U.S. have to
prove they are eligible to work in the U.S. Perhaps the main effect of
9/11 on immigration compliance has been the increased difficulty
immigrants face in entering the U.S.
The HR Scorecard Strategy and Results: The New
Employee Testing Program – this feature shows how the
Hotel Paris applied this chapter's ideas in creating a new
testing process.

NOTES
Educational Materials to Use
DISCUSSION QUESTIONS
1. What is the difference between reliability and validity? In what respects are they
similar? Reliability is the consistency of scores obtained by the same persons when
retested with identical tests or with an equivalent form of a test. It is a measure of internal
consistency of the instrument. Validity is the degree to which a test measures what it is
purported to measure. It is a measure of external consistency. They are similar in that both
are concerned with aspects of consistency of the instrument, and that reliability is a
necessary condition for validity.
2. Explain how you would go about validating a test. How can this information be useful
to a manager? The validation process consists of five steps: job analysis, selecting a test,
administering a test, relating the test scores and the criteria, and cross validation and
revalidation. Using valid selection devices will enable the manager to develop objective
information in the selection process and should result in more effective selection decisions.
3. Explain why you think a certified psychologist who is specially trained in test
construction should (or should not) always be used by a small business that needs a
test battery. Due to the complex and legal nature of this activity, the use of a certified
psychologist may be the only safe way to accomplish your objectives. However, because of
the high salary and limited job scope of such a specialist, a definite drawback to this
approach is the cost involved. Perhaps more "direct" tests can be developed which require
less sophistication: motor and physical abilities tests (many state employment agencies
provide this service), on-job knowledge tests, and work sampling.
This chapter also
presents some alternative testing tools that are relatively easy to administer and low in cost
that are reasonable choices for small employers to use.
4. Give some examples of how interest inventories could be used to improve employee
selection. In doing so, suggest several examples of occupational interests that you
believe might predict success in various occupations including college professor,
accountant, and computer programmer. Interest inventories can improve employee
selection by identifying individuals with similar interests to those reported by a substantial
percentage of successful incumbents in an occupation. This should clearly increase the
likelihood that the applicants will be successful in their new jobs. Interests that one might
expect: accountant: math, reading, music; college professor: public speaking, teaching,
counseling; computer programmer: math, music, computers.
5. Why is it important to conduct pre-employment background investigations? How
would you go about doing so? Past behavior is the best predictor of future behavior. It is
important to gain as much information as possible about past behavior to understand what
kinds of behavior one can expect in the future. Knowledge about attendance problems,
insubordination issues, theft, or other behavioral problems can certainly help one avoid hiring
someone who is likely to repeat those behaviors. The section on background investigations
and reference checks has some excellent guidelines for background checks.
6. Explain how you would get around the problem of former employers being unwilling to
give bad references on their former employees? Since many companies have strict
policies regarding the release of information about former employees, it may not be possible
to get information at all, good or bad. However, conducting a thorough reference audit by
contacting at least two superiors, two peers, and two subordinates will help increase the
chance that you will find someone who is willing to give you the information you need. Also,
making the contacts by phone rather than in writing will increase their belief that the
information may not be traced back to them. Using the additional technique of asking
references for the name of someone else who might be familiar with the applicant's
performance will also increase the possibility of getting more information.
7. How can employers protect themselves against negligent hiring claims? There is a list
of ways employers can protect themselves against negligent hiring claims discussed in the
section on why careful selection is important at the beginning of the chapter.
DESSLER COMPANION WEB SITE
We invite you to visit the Dessler homepage (http://www.prenhall.com/dessler) on the
Prentice Hall Web site for the best online business support available. This site
provides professors with a customized course Web site, including new
communication tools, one-click navigation of chapter content, and great resources,
such as Internet Resources, an HRCI Exam Prep Guide, assessment exercises, and
more.
INDIVIDUAL AND GROUP ACTIVITIES
1. Write a short essay discussing some of the ethical and legal considerations in testing.
State and federal laws, EEOC guidelines, and court decisions require that you must be able
to prove that your tests are related to success or failure on the job and that they are not
having an adverse impact on members of a protected group. Test takers also have certain
basic rights to privacy and information. The test taker also has the right to expect that the
test is equally fair to all test takers.
2. Working individually or in groups, develop a list of selection techniques that you
would suggest your dean use to hire the next HR professor at your school. Also,
explain why you chose each selection technique. The students should use the selection
information presented in the chapter to list their selection techniques of choice with their
supporting rationale.
3. Working individually or in groups, contact the publisher of a standardized test such as
the Scholastic Assessment Test and obtain from them written information regarding
the test's validity and reliability. Present a short report in class discussing what the
test is supposed to measure and the degree to which you think the test does what it is
supposed to do, based on the reported validity and reliability scores. Encourage
students to contact different sources; it may be a good idea to have a sign-up sheet so that
no two students or groups are gathering information on the same instruments. Students
should be able to clearly relate validity and reliability scores to effectiveness.
4. The HRCI "Test Specifications" appendix at the end of this book lists the knowledge
someone studying for the HRCI certification exam needs to know in each area of
human resource management (such as in Strategic Management, Workforce Planning,
and Human Resource Development). In groups of 4-5 students, do four things: (1)
review that appendix now; (2) identify the material in this chapter that relates to the
required knowledge the appendix lists; (3) write four multiple choice exam questions
on this material that you believe would be suitable for inclusion in the HRCI exam; and
(4) if time permits, have someone from your team post your team's questions in front
of the class, so the students in other teams can take each other's exam questions.
Material included in this chapter that relates to the HRCI certification exam include
establishing and Implementing selection procedures of testing; reference and background
checking; post-offer employment activities; knowledge of reliability and validity of selection
tests/tools/methods; and use and interpretation of selection tests.
Sample multiple choice questions:
1. Criterion Related validity:
a. is a test's first major requirement and refers to its consistency
b. demonstrates that those who do well on the test also do well on the job
c. shows that the test constitutes a fair sample of the content of the job
d. none of the above
Answer: b
2.
a.
b.
c.
d.
Test Reliability:
Is a test's first major requirement and refers to its consistency
Demonstrates that those who do well on the test also do well on the job
Shows that the test constitutes a fair sample of the content of the job
None of the above
Answer: a
3. Tests that measure general reasoning ability and mental abilities are called
a. Personality and Interest Tests
b. Tests of Motor and Physical Abilities
c, Tests of Cognitive Abilities
d. Achievement Tests
Answer: c
4. How employers acquire and use applicants' background information is
governed by:
a. The ADA
b. The Fair Credit Reporting Act
c. The Federal Rehabilitation Act of 1973
d. The Immigration Reform and Control Act of 1986
Answer: b
EXPERIENTIAL EXERCISES & CASES
Experiential Exercise: A Test for a Reservation Clerk
This exercise gives the students the opportunity to practice designing a test to measure one
specific ability for applicants.
Application Case: Where's My Czar?
1. What should this position’s job description look like? Students should list the types of
activities, responsibilities, and qualifications that they believe should be included.
2. What are the ideal job specifications for the person in this position? Students should
list (and be ready to defend) the specifications that they believe would be needed.
3. How should we have gone about recruiting and screening for this position? What
selection tools, specifically, would you use? Many tools could be included, such as
background checks, interviews, etc.
4. Where do you think we went wrong? It appears that they went wrong in not specifying that
a requirement for the job would be to not have outsourced manufacturing overseas.
Continuing Case 3: Honesty Testing at Carter Cleaning Company
1. What would be the advantages and disadvantages to Donna’s company of routinely
administering honest tests to all its employees? Polygraph testing raises a large number
of legal and moral issues; issues Carter Cleaning would best avoid. Use of some of the
available “paper and pencil” honesty tests may be a possibility. In general, these have been
shown to be reasonably reliable and valid. They are still controversial. The costs associated
with these tests may also make them prohibitive to a small operation like Jennifer’s.
2. Specifically, what other screening techniques could the company use to screen out
theft-prone employees, and how exactly could these be used? More thorough
background checks are a recommend technique to eliminate potential thieves. Some firms
chose to contract this out to a private security agency (Cost may be an issue to Jennifer).
However, the company can quickly check to see if savings from reduced theft would offset
the cost of an outside agency. As part of the job preview, Carter must communicate that
dishonesty and theft will not be tolerated. Further company policies regarding theft should be
clearly communicated to new and existing employees.
3. How should her company terminate employees caught stealing, and what kind of
procedure should be set up for handling reference calls about these employees when
they go to other companies looking for jobs? Terminating employees for theft should
include the involvement of proper authorities and should only be done when there is absolute
proof of the theft and who committed it. Such an action will also send a message to the other
employees that you will not tolerate theft of company resources. While many employers are
reluctant to prosecute employees for theft, developing evidence with police and through the
courts can be beneficial in providing future employers of the individual with truthful and
factual information.
KEY TERMS
negligent hiring
Hiring workers with criminal backgrounds without proper
safeguards.
reliability
The characteristic which refers to the consistency of scores
obtained by the same person when retested with the identical or
equivalent tests.
test validity
The accuracy with which a test, interview, and so on measures
what it purports to measure or fulfills the function it was designed
to fill.
criterion validity
A type of validity based on showing that scores on the test
(predictors) are related to job performance.
content validity
A test that is content--valid is one in which the test contains a fair
sample of the tasks and skills actually needed for the job in
question.
expectancy chart
A graph showing the relationship between test scores and job
performance for a large group of people.
interest inventory
A personal development and selection device that compares the
person’s current interests with those of others now in various
occupations so as to determine the preferred occupation for the
individual.
work samples
Actual job tasks used in testing applicants' performance.
work sampling technique
A testing method based on measuring performance on actual job
tasks.
management assessment
center
A situation in which management candidates are asked to make
decisions in hypothetical situations and are scored on their
performance. It usually also involves testing and the use of
management games.