Human Resource Management Gaining a Competitive Advantage Chapter

Human Resource Management: Gaining a Competitive Advantage Chapter 6 Selection and Placement Mc. Graw-Hill/Irwin Copyright © 2010 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

Learning Objectives Ø Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability. Ø Discuss how the particular characteristics of a job, organization, or applicant affect the utility of any test. Ø Describe the government’s role in personnel selection decisions, particularly in the areas of constitutional law, federal laws, executive orders and judicial precedent. Ø List the common methods used in selecting human resources. Ø Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality. 6 -2

Selection Method Standards for Evaluation Purposes üReliability üValidity üGeneralizability üUtility üLegality 6 -3

Reliability Ø Reliability is the degree to which a measure of physical or cognitive abilities, or traits, is free from random error. The correlation coefficient 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 Ø Test-retest reliability- knowing how scores on the measure at one time relate to scores on the same measure at another time. 6 -4

Validity Ø Validity is the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. Ø 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 -5

Criterion-Related Validity Predictive Test Applicants Measure Performance Of Those Hired Concurrent Test Existing Employees Measure their Performance TIME 6 -6

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 § Achieved primarily through expert judgment 6 -7

Generalizability Ø Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts. Ø 3 Contexts include: 1. different situations (jobs or organizations) 2. different samples of people 3. different time periods 6 -8

Utility Ø Utility is the degree to which information provided by selection methods enhances the effectiveness of selecting personnel. -Utility is impacted by reliability, validity and generalizability. 6 -9

Legality Ø All selection methods must conform to existing laws and legal precedents. Ø 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 -10

Civil Rights Act of 1991 Ø Protects individuals from discrimination based on race, color, sex, religion and national origin. Ø Differs from the 1964 act in three areas: 1. Establishes employers' explicit obligation to establish neutral-appearing selection method. 1. Allows a jury to decide punitive damages. 2. Explicitly prohibits the granting preferential treatment to minority groups. 6 -11

Age Discrimination in Employment Act of 1967 Ø Covers over age 40 individuals. Ø No protection for younger workers. • Outlaws almost all “mandatory retirement” programs. 6 -12

Americans with Disabilities Act Ø Protects individuals with physical or mental disabilities (or with a history of the same). Ø Reasonable accommodations are required by the organization to allow the disabled to perform essential functions of the job. § An employer need not make accommodations that cause undue hardship. Ø Restrictions on pre-employment inquiries. 6 -13

Executive Orders Ø Executive Order 11246 parallels the Civil Rights Act of 1964 and goes beyond by: § requiring affirmative action to hire qualified protected group applicants and § allowing the government to suspend all business with a contractor during an investigation. Ø The Office of Federal Contract Compliance and Procedures (OFCCP) issues guidelines and helps companies comply. 6 -14

Types of Selection Methods Interviews Honesty Tests and Drug Tests Work Samples Personality Inventories References and Biographical Data JOBS HR Physical Ability Tests Cognitive Ability Tests 6 -15

Interviews Ø Selection interviews-a dialogue initiated by one or more persons to gather information and evaluate the an applicant’s qualifications for employment. Ø To increase an interview’s utility: § Interviews should be structured, standardized, and focused on goals oriented to skills and observable behaviors. § Interviewers should be able to quantitatively rate each interview. § Interviewers should have a structured note-taking system that will aid recall to satisfying ratings. 6 -16

Situational Interview Ø A situational interview confronts applicants on specific issues, questions or problems likely to arise on the job. Ø Situational interviews consist of: – experience-based questions – future-oriented questions. 6 -17

Other Selection Methods Ø An individual should manage their digital identity the same way they manage their résumé. Ø References, biographical data, and applications gather background information on candidates. Ø Physical ability tests are relevant for predicting job performance, occupational injuries and disabilities. Ø Physical ability tests include: § muscular tension, power, and endurance § cardiovascular endurance § flexibility § balance § coordination 6 -18

Other Selection Methods Ø A cognitive ability test differentiates individuals based on their mental rather than physical capacities. Commonly assessed abilities: § verbal comprehension § quantitative ability § reasoning ability Ø Personality inventories categorize individuals by their personality characteristics. Ø Work samples simulate a job in miniaturized form. 6 -19

Cognitive Ability Tests Ø 3 Dimensions Cognitive Ability Tests: 1. Verbal Comprehension 2. Quantitative Ability 3. Reasoning Ability Ø Verbal Comprehension -a person’s capacity to understand use written and spoken language. Ø Quantitative Ability - the speed and accuracy with which one can solve arithmetic problems. Ø Reasoning Ability - a person’s capacity to invent solutions to diverse problems. 6 -20

Personality Inventories Extroversion Inquisitiveness Adjustment Agreeableness Conscientiousness 6 -21

Emotional Intelligence Self- awareness Self- regulation Self- motivation Empathy Social Skills 6 -22

Work Sample Tests Ø Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs in the simulated job. Ø Assessment Center- a process in which multiple raters evaluate employees’ performance on a number of exercises. 6 -23

Honesty Tests Ø Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharmaceutical and security guard suppliers. Ø 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 -24

Drug Tests Ø Drug-use tests tend to be reliable and valid. Ø Major controversies of drug tests include: q Is it an invasion of privacy? q Is it an unreasonable search and seizure? q Is it a violation of due process? Ø Tests should be administered systematically to all applicants applying for the same job. Ø Testing is likely to be more defensible when there are safety hazards associated with the failure to perform. Ø Test results should be reported to the applicant, who should have an avenue to appeal. 6 -25

Summary Ø Job applicants and an organization’s viability are strongly affected by decisions regarding who is accepted and rejected for positions. Ø There are numerous alternatives to this for making such decisions, many of which have been validated and supported by years of research. 6 -26