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Mgmt 441-01 Staffing

Prof. Howard Miller


Staffing Function

 Among several human resource


functions

 Benefits
 Compensation
 Safety
 Labor Relations
 Training
Staffing . . .

 Involves getting people in, or out, of


a company

 We’ll concentrate on the “getting


people in” part
Staffing has 2 main
purposes

 “Get the best talent” for the firm at


the price we can offer

 Conform to national, state and local


regulations concerning staffing
practice, or in short “keep it legal”
How to Staff?

 Derive “demand for labor”


 Update job requirement information
 Identify knowledge, skills and abilities
required for success on job
 Develop measures of job-related KSA’s
 Recruit from relevant labor markets
 Screen using “valid” tests
 Make offer, provide orientation to
accepts
Staffing Project Steps

 Choose job to study


 Find real setting to perform job analysis
 Perform job analysis
 Develop job description, job specification
 Find/develop tests to measure job specifications
 Identify “Relevant” labor markets
 Define recruiting methods
 Spell out hiring process to client in full detail
What do you mean “valid
test”?
* Note importance of Supreme Court case
Watson v. Ft Worth Bank and Trust (1988)
Supreme court states (paraphrasing):
“A test is any hurdle you have to clear to get a
job” - especially important for interviewing,
which was at core of case
* A “valid test” is a hurdle that allows better
talent to get over, while lesser talent is
screened out
How do we establish if a
test is “valid”
 Note importance of “The Uniform
Guidelines for Employee Selection
Procedures” (1978)
Uniform Guidelines link

 Three methods recognized by courts –


“Content validation”
“Criterion-related validation”
“Construct validation”
The logic of hiring
validity illustrated
 Consider classic payoff matrix, which we’ll
label “selection decision matrix” in our
setting.
 Good decisions result when applicants who
will succeed are hired (“true positive”), and
applicants who will not succeed are
rejected (“true negative”)
 Bad decisions involve rejecting people who
will work out (“false negative), and
accepting those who don’t work out (“false
positive”)
Selection Decision
Matrix
Content validation …

 A logical analysis by subject matter


experts (SME’s) of the overlap
between the content of screening
tests and the content of job
requirements

 Note the deceptive simplicity of the


requirements for a typist at the
university
Criterion-related
validation
 The main way it’s done
 2 types: Predictive Validation and
Concurrent Validation

 Predictive uses test data from applicants,


and job performance data from those
hired
 Concurrent uses both test and
performance data from current
employees
Construct Validation . .
.
 More complex than the other two

 One has to show that measures of


applicant traits and job performance
really measure those things (Classic
construct validation)
 AND then show trait measures
correlate with job performance
measures
the vast majority of the
time

we’ll be referring to “concurrent,


criterion-related validity evidence”
because of it’s overwhelming use
Valid tests mean lower
error rates in hiring
decisions
 More true positives and negatives
 Fewer false positives and negatives
 Lower exposure to successful
litigation
 Higher “utility” of the staffing
function
Research on validity tells
us what works!

 Find tests that are shown to be valid

 How is this done?

 Within the “concurrent, criterion-related


validation” approach, it means showing a
significant correlation between test scores
and job performance scores – the essence
of a concurrent validity study.
What would such validation
data look like?

 See “Ma and Pa Consumer


Electronics Store” data set
illustration

 Ma and Pa Consumer Electronics Data Set 1


Valid Hiring Tests

 A hiring test – anything you must get


through to get the job

 A “Valid” hiring test – one where


applicants who score better on the test
do a better job if hired

 In criterion-related empirical test


validation, it is one where there is a
“significant correlation between hiring
test scores and job performance scores”
Empirical validation

 Obtain a representative sample of people


 Have them take the hiring test(s), and measure
their job performance
 Compute the statistical correlation of hiring test
scores and job performance scores
 Compute the “statistical significance” of the
sample correlation
 If “significant”, cross-validate in new sample
 If correlation remains significant, put test(s) into
use
Some key statistical
concepts
 “Mean” the average score for a
group of people
 “Standard Deviation” the average
variability around the average score
for a group of people
 “Correlation” a number that reveals
the degree of linear association
between hiring test scores and job
performance scores
Correlation properties
 Correlation is notated with lower case “r”
 It can range in value from -1.00 to +1.00
 r=0 means “zero” correlation, no linear
association between the test (x) and job
performance (y) – that’s not happy
 r=+1.00 (or r= -1.00) means there is a perfect
association of hiring test and job performance -
doesn’t happen in reality, tho’ we’d love it if it
did!
 Correlations from real samples RARELY exceed
values of r=.50
More on correlation
 Correlation can be used to “summarize”
the pattern in a 2-variable scatterplot,
like the hiring test (x axis) versus job
performance (y axis) scatterplot

 In this application, correlation is a


special case of linear regression – using
a straight line to summarize what’s
happening in a data set

 Plot interview score against job


performance in the Ma and Pa data set
Statistical analysis of
interviews in relation to
monthly sales

 Compute the correlation of hiring test


scores with job performance scores

 Compute the regression of job performance


scores (Y) on hiring test scores (X)
Things to do
 Review material covered, so you ace
the quiz next week

 Read the “legal” chapter in GFB


 Read the “Uniform Guidelines”

 Find a company/organization where


you can perform job analysis on real
job

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