6 Chapter Irwin/McGraw-Hill Selection and Placement Objectives • Establish the basic scientific properties of personnel selection methods, including reliability, validity, and generalizability • Discuss how the particular characteristics of a job, organization, or applicant affect the utility of any test • Describe the government’s role in personnel selection decisions, particularly in the areas of constitutional law, executive orders, and judicial precedents • List the common methods used in selecting human resources © The McGraw-Hill Companies, 6-2 Selection Method Standards for Evaluation Purposes Reliability  Reliability Validity  Validity Generalizability  Generalizability Utility  Utility Legality  Legality Irwin/McGraw-Hill © The McGraw-Hill Companies, Reliability 6-3 The degree to which a measure is consistent over Reliability = 95 Measure Irwin/McGraw-Hill Reliability = Measure © The McGraw-Hill Companies, Reliability-Correlation Coefficient 6-4    Is a measure of the degree to which two sets of numbers are related A perfect positive relationship equals + 1.0 A perfect negative relationship equals -1.0 Irwin/McGraw-Hill © The McGraw-Hill Companies, Reliability 6-5    Test-retest reliability How scores on the measure at one time relate to scores on the same measure at another time The consistency of multiple items or scales can also be assessed via split-half reliability estimates Inter-rater reliability estimates two different human judges rate the person on the dimensions of interest, it is then correlated Irwin/McGraw-Hill © The McGraw-Hill Companies, Validity 6-6  The extent to which performance on a measure is related to job performance   Irwin/McGraw-Hill Criterion-related Criterion-related predictive  predictive concurrent  concurrent Content Content © The McGraw-Hill Companies, Criterion- Related Validity 6-7  Determines a relationship between selection test scores and job performance Predictive Measure performance of those hired test applicants TIME Irwin/McGraw-Hill © The McGraw-Hill Companies, Criterion - Related Validity 6-8  Determines a relationship between selection test scores and job performance Predictive Measure performance of those hired test applicants TIME Irwin/McGraw-Hill Concurrent test existing employees Measure their performance TIME © The McGraw-Hill Companies, Validity Testing Predictive 6-9 Minimum Level PERFORMANCE TEST SCORE Irwin/McGraw-Hill © The McGraw-Hill Companies, Validity Testing Predictive 6-10 Minimum Level PERFORMANCE REJECT ACCEPT TEST SCORE Irwin/McGraw-Hill © The McGraw-Hill Companies, Validity Testing Predictive 6-11 ERROR PERFORMANCE Minimum Level SUCCESS FAILURE ERROR REJECT ACCEPT TEST SCORE Irwin/McGraw-Hill © The McGraw-Hill Companies, Content Validity 6-12 Test items are representative of the job situation Determined through expert judgment Content Validity Ratio (CVR) CVR = where ne n e - N/2 N/2 = number of experts who rate item as “essential” N = total number of experts Irwin/McGraw-Hill © The McGraw-Hill Companies, 6-13 Required Level of CVR to reach Statistical Significance as a function of the Number of Judges 1.0 Required CVR 75 50 25 10 15 20 25 30 Number of Judges Irwin/McGraw-Hill © The McGraw-Hill Companies, Generalizability 6-14   Degree to to which which one one can can extend extend validity validity Degree to other other contexts contexts to Three contexts contexts include include Three different situations situations  different especially true true for for more more complex complex jobs jobs especially different samples samples of of people people  different more similar similar across across race race and and gender gender more than thought thought than different time time periods periods  different Irwin/McGraw-Hill © The McGraw-Hill Companies, Utility 6-15   Degree to which information from selection method enhances bottom line effectiveness Does the test increase the accuracy of the selection process? Irwin/McGraw-Hill © The McGraw-Hill Companies, Low Utility 6-16 Success 70% 15% Minimum Level 5% 10% Failure PERFORMANCE ERROR REJECT without test - 85% accuracy with test - 87% accuracy Irwin/McGraw-Hill ACCEPT TEST SCORE © The McGraw-Hill Companies, High Utility 6-17 Minimum Level 20% 40% SUCCESS 30% 10% FAILURE PERFORMANCE ERROR REJECT without test - 50% accuracy with test - 75% accuracy Irwin/McGraw-Hill ACCEPT TEST SCORE © The McGraw-Hill Companies, Legality 6-18    Constitutional law law used used sparingly sparingly Constitutional Legislation (CRA, (CRA, ADEA, ADEA, ADA) ADA) Legislation employers need need to to establish establish business business  employers necessity for for any any method method showing showing adverse adverse necessity impact impact prohibits preferential preferential treatment treatment for for  prohibits protected groups groups protected Executive Orders Orders (( 11246) 11246) Executive prohibits discrimination discrimination  prohibits mandates affirmative affirmative action action to to hire hire qualified qualified  mandates minorities for for government government contracts contracts minorities Irwin/McGraw-Hill © The McGraw-Hill Companies, 6-19 AdverseERROR Impact Majority SUCCESS Minimum Level Protected FAILURE PERFORMANCE ERROR REJECT ACCEPT TEST SCORE Irwin/McGraw-Hill SelectionRatio Ratioof ofmajority majority= =60%, 60%, IfIfSelection forAdverse AdverseImpact Impactto tooccur occurthe the for SelectionRatio Ratioof ofprotected protectedclass class Selection mustbe beless lessthan than(4/5 (4/5of of60%) 60%)or or must 48% © The McGraw-Hill Companies, 48% Types of Selection Methods 6-20  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  References and biographical data gather background information on candidates  Physical ability test relevant for predicting not only job performance but occupational injuries and disabilities Irwin/McGraw-Hill © The McGraw-Hill Companies, Types of Selection Methods (cont.) 6-21  Cognitive ability test differentiate candidates on mental ability  Personality inventories categorize individuals by their personality characteristics   Work samples simulate the job Honesty tests and drug tests Irwin/McGraw-Hill © The McGraw-Hill Companies, 6-22 Evaluating Various Selection Methods Interview Low Low Low Low Low References Low Low Low Low Libel? Bio-data High High Physical Ability High Mod - High Low Moderate High Low Low Cognitive Ability High Personality High Low Low Work-samples High High Drug High High Honesty Irwin/McGraw-Hill Insufficient Adverse Impact -sex,race Moderate Adverse Impact-sex Adverse High Impact-race Job specific High Low Low Low Low Job specific High High High Costly Privacy Information © The McGraw-Hill Companies, [...]... FAILURE PERFORMANCE ERROR REJECT without test - 50% accuracy with test - 75% accuracy Irwin/McGraw-Hill ACCEPT TEST SCORE © The McGraw-Hill Companies, Legality 6-18    Constitutional law law used used sparingly sparingly Constitutional Legislation (CRA, (CRA, ADEA, ADEA, ADA) ADA) Legislation employers need need to to establish establish business business  employers necessity for for any any... lessthan than(4/5 (4/5of of60%) 60%)or or must 48% © The McGraw-Hill Companies, 48% Types of Selection Methods 6-20  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  References and biographical data gather background information on candidates  Physical ability test relevant for predicting... showing adverse adverse necessity impact impact prohibits preferential preferential treatment treatment for for  prohibits protected groups groups protected Executive Orders Orders (( 11246) 11246) Executive prohibits discrimination discrimination  prohibits mandates affirmative affirmative action action to to hire hire qualified qualified  mandates minorities for for government government contracts... contracts contracts minorities Irwin/McGraw-Hill © The McGraw-Hill Companies, 6-19 AdverseERROR Impact Majority SUCCESS Minimum Level Protected FAILURE PERFORMANCE ERROR REJECT ACCEPT TEST SCORE Irwin/McGraw-Hill SelectionRatio Ratioof ofmajority majority= =60%, 60%, IfIfSelection forAdverse AdverseImpact Impactto tooccur occurthe the for SelectionRatio Ratioof ofprotected protectedclass class Selection... performance but occupational injuries and disabilities Irwin/McGraw-Hill © The McGraw-Hill Companies, Types of Selection Methods (cont.) 6-21  Cognitive ability test differentiate candidates on mental ability  Personality inventories categorize individuals by their personality characteristics   Work samples simulate the job Honesty tests and drug tests Irwin/McGraw-Hill © The McGraw-Hill Companies,... Companies, 6-22 Evaluating Various Selection Methods Interview Low Low Low Low Low References Low Low Low Low Libel? Bio-data High High Physical Ability High Mod - High Low Moderate High Low Low Cognitive Ability High Personality High Low Low Work-samples High High Drug High High Honesty Irwin/McGraw-Hill Insufficient Adverse Impact -sex,race Moderate Adverse Impact-sex Adverse High Impact-race Job specific... total number of experts Irwin/McGraw-Hill © The McGraw-Hill Companies, 6-13 Required Level of CVR to reach Statistical Significance as a function of the Number of Judges 1.0 Required CVR 75 50 25 5 10 15 20 25 30 Number of Judges Irwin/McGraw-Hill © The McGraw-Hill Companies, Generalizability 6-14   Degree to to which which one one can can extend extend validity validity Degree to other other contexts...Validity Testing Predictive 6-11 ERROR PERFORMANCE Minimum Level SUCCESS FAILURE ERROR REJECT ACCEPT TEST SCORE Irwin/McGraw-Hill © The McGraw-Hill Companies, Content Validity 6-12 Test items are representative of the job situation Determined through expert judgment Content Validity Ratio (CVR) CVR = where ne n e - N/2 N/2 = number of experts who rate item as “essential” N = total number... include Three different situations situations  different especially true true for for more more complex complex jobs jobs especially different samples samples of of people people  different more similar similar across across race race and and gender gender more than thought thought than different time time periods periods  different Irwin/McGraw-Hill © The McGraw-Hill Companies, Utility 6-15 ... to which information from selection method enhances bottom line effectiveness Does the test increase the accuracy of the selection process? Irwin/McGraw-Hill © The McGraw-Hill Companies, Low Utility 6-16 Success 70% 15% Minimum Level 5% 10% Failure PERFORMANCE ERROR REJECT without test - 85% accuracy with test - 87% accuracy Irwin/McGraw-Hill ACCEPT TEST SCORE © The McGraw-Hill Companies, High Utility