Applied Psychology in Human Resource Management seventh edition

Applied Psychology in Human Resource Management seventh edition Cascio & Aguinis Power. Point Slides developed by Ms. Elizabeth Freeman University of South Carolina Upstate Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -1

Chapter 4 Criteria: Concepts, Measurement, and Evaluation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -2

Criterion: a standard, rule, or test by which a person may be judged or measured Empirical: based on results of scientific method experiment or observation practical experience Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -3

Criteria deal with the what, why, & how of work performance include operational statements, goals, outcomes are used to make judgments are used to make predictions are dynamic or changeable by nature Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -4

Applied Psychologists use criteria To assist with the recruiting, selection, evaluation, & retention of employees (i. e. , to determine the usefulness of programs) To improve the understanding of what it takes to be a success as an employee Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -5

Criteria traditionally used to Predict success Evaluate performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -6

Comprehensive definition for criterion An EVALUATIVE STANDARD used to measure Performance Attitude Motivation Other work behaviors Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -7

Possible Criteria include Output measures Quality measures Lost time Trainability & promotability Ratings Counterproductive behaviors (or their absence) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -8

If assessments could include every possible aspect of performance, then you could assume that you are evaluating based on the … ULTIMATE CRITERION accounting for highs vs. lows, maximums vs. typicals Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -9

Truthfully, though, an ultimate criterion is a concept rather than a fact Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -10

Dimensionality of Criteria Static (fixed) Dimensions of Task & Context Task Performance Activities that convert raw materials into products or services Activities that help production or service replenishing raw materials distribution of products planning, coordination, staff support functions Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -11

Dimensionality of Criteria Contextual Performance Enthusiasm, punctuality, attendance Volunteering for extra work Agreeableness Following rules & procedures Organizational support Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -12

Dimensionality of Criteria Is there a dark side to contextual performance? Yes. Padding hours worked Participating in negative rumors Gossiping Hiding mistakes Intentional work slow-downs Pirating ideas Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -13

Dimensionality of Criteria Dynamic (changing) / Temporal (time) Employee performance will vary over time Criteria Measurement must accommodate these variations of changes in time for everyone in a position validity coefficients rank ordering Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -14

Dimensionality of Criteria Dynamic (changing) / Temporal (time) Employee performance varies over time Must consider characteristics of individuals who succeed and compare to characteristics of individuals who leave or who do not perform well Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -15

Dimensionality of Criteria Dynamic (changing) / Temporal (time) Validity coefficients vary over time Behaviors or characteristics that predict success do not guarantee that the same behaviors will predict future success changing tasks – jobs will change changing subjects – skills will change Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -16

Dimensionality of Criteria Individual Dimensionality Performance Measurement Criteria must consider the varying types of skills relative contribution to the organization must acknowledge that different skill sets may have equal value to an organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -17

Challenges to successful criterion development Job performance unreliability Job performance observation Dimensionality of job performance Situational impacts on performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -18

Criterion development challenges Job performance unreliability Intrinsic – having a “good” versus “bad” day Extrinsic – variations in aspects of job beyond personal control (weather, equipment, supply delays) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -19

Criterion development challenges Job performance observation Assessment Centers Quantitative performance records Independent evaluators Supervisor ratings Peer group evaluations Self evaluations Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -20

Performance & Situational Characteristics Environmental & Organizational Environmental Safety Life-space Variables Job & Location Sales Performance Leadership Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -21

Performance & Situational Characteristics Environmental & Organizational Absenteeism, turnover, pay, promotion policies, group cohesiveness, friendship, respect, role clarity, task repetitiveness, autonomy, age, tenure, mood, family size Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -22

Performance & Situational Characteristics Environmental Safety Injury rate Positive safety climate High management commitment Safety communications & training program Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -23

Performance & Situational Characteristics Life-space Variables Task challenge on assignments Life stability Supervisor-subordinate personality match Immediate supervisor’s success Personal orientation Career confidence Cosmopolitan versus local orientation Job stress Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -24

Performance & Situational Characteristics Job and Location Performance depends on job demands and on policies and practices of a particular company Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -25

Performance & Situational Characteristics Extraindividual Differences and Sales Performance Sales Experience Market Share Performance Ratings Territory Workload Market Potential Advertising Effort Sales Effort Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -26

Performance & Situational Characteristics Leadership Impacts morale Impacts performance Impacts vary by Age Gender Experience Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -27

Criterion Development Steps 1. Analyze jobs & organizational needs 2. Develop measures of actual & expected behaviors 3. Statistically analyze criterion dimensions Factor analysis Cluster analysis Pattern analysis 4. Develop reliable measures 5. Determine predictive validity of each predictor for each criterion Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -28

Evaluating Criteria 1. Relevance 2. Sensitivity or Discriminability 3. Practicality Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -29

Evaluating Criteria 1. Relevance A criterion “reflects the relative standing of employees with respect to important work behavior(s) or outcome(s)” Not always cheap or easy to develop Must decide what success means Objective and subjective measures are not interchangeable Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -30

Evaluating Criteria 2. Significance or Discriminability Must be able to distinguish between effective and ineffective employees May be completely different from variance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -31

Evaluating Criteria 3. Practicality Must be able to balance the requirements and needs for criterion data to needs of organization to run cost effectively and to maintain profitability Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -32

Criterion Deficiency Criterion must be complete in addressing all critical aspects of successful job performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -33

Criterion Contamination happens when operational or actual criterion include variation not related to the performance measurement. Two types of contamination: Error – random or chance variation Bias – systematic variation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -34

Criterion Contamination Bias may happen in 3 ways 1. Knowledge of Predictor 2. Group Membership 3. Ratings inadequate observations limited opportunities to perform inability to distinguish skills Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -35

Criterion Equivalence occurs when 2 or more criteria: are perfectly correlated measure the same set of skills can be used interchangeably is very rare when considering equivalency must look at time of measurement and type of measurement Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -36

Criterion Equivalence Management may decide to drop one (reducing redundancy) may keep “just in case” more is better may collect data relevant to both criteria Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -37

Composite Criterion versus Multiple Criteria Composites: “Sum” to give one score or rating Must address issue of weighting each part Assumes performance can be translated into dollars contributed Validation addresses economic needs of organization Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -38

Composite Criterion versus Multiple Criteria Multiples: Different job skills require different scores Criterion reflect required behaviors View validation as necessary for understanding as well as economic need Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -39

Composites or Multiples? BOTH ARE NECESSARY TO REACH THE GOALS OF UTILITY & UNDERSTANDING Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -40

Research Design / Criterion Theory Summary Criterion-related Construct validity Job specifications Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -41

Research Design / Criterion Theory Summary Criterion-related: empirically valid measurement of performance, criterion will predict performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -42

Research Design / Criterion Theory Summary Construct validity: if test measures skill critical to performance, then test performance can predict successful performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -43

Research Design / Criterion Theory Summary Job specifications: skills identified as necessary for job success based on results of job analysis ***more commonly known as job description *** Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4 -44

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