PART TWO

RECRUITMENT AND PLACEMENT

C H A P T E R

S i x

Employee Testing And Selection

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

6
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. 2. 3. 4. Analyze the Job and write job descriptions and job specifications. Choose the Tests that measure the attributes (predictors) important for job success. Administer the Test selected to old or new employees for concurrent and predictive validation. 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. 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.

5.

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 dont 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 Associations (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 APAs test privacy and security standard, certain other protections regarding an employees 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. NOTES Educational Materials to Use

III.

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. 2. Intelligence Tests are tests of general intellectual abilities ranging from memory, vocabulary, verbal fluency to numerical ability. 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 ones interests with those of people in various occupations. D. Achievement Tests measure what a person has learned. E. Web-based Testing is increasingly used for testing and screening applicants. Educational Materials to Use

NOTES

IV.

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 jobs 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. 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.

2.

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 candidates 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 Youre 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 applicants 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. 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.

2.

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. Test Reliability: 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: a 3 4 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 positions 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 Donnas 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 Jennifers. 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. 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.

2.

3.

KEY TERMS
negligent hiring reliability Hiring workers with criminal backgrounds without proper safeguards. The characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests. 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. A type of validity based on showing that scores on the test (predictors) are related to job performance. 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.

test validity

criterion validity content validity

expectancy chart interest inventory

A graph showing the relationship between test scores and job performance for a large group of people. A personal development and selection device that compares the persons current interests with those of others now in various occupations so as to determine the preferred occupation for the individual. Actual job tasks used in testing applicants' performance. A testing method based on measuring performance on actual job tasks. 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.

work samples work sampling technique management assessment center