Week 6 Staffing Activities: Selection Chapter 8: External Selection I McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Staffing System and Retention Management Support Activities Legal compliance Planning Job analysis Core Staffing Activities Recruitment: External, internal Selection: Measurement, external, internal Employment: Decision making, final match Organization Mission Goals and Objectives Staffing Organizations Model 8-2

8-3 Chapter Outline Preliminary Issues – Logic of Prediction – Nature of Predictors – Development of the Selection Plan – Selection Sequence Initial Assessment Methods – Resumes and Cover Letters – Application Blanks – Biographical Information Initial Assessment Methods – References and Background Checks – Handwriting Analysis – Literacy Testing – Genetic Testing – Initial Interview – Choice of Methods Legal Issues

8-4 Learning Objectives for This Chapter Understand how the logic of prediction guides the selection process Review the nature of predictors—how selection measures differ Understand the process involved in developing a selection plan, and the selection sequence Learn about initial assessment methods and understand how these methods are optimally used in organizations Evaluate the relative effectiveness of initial assessment methods to determine which work best, and why Review the legal issues involved in the use of initial assessment methods, and understand how legal problems can be avoided

8-5 Preliminary Issues Logic of prediction Nature of predictors Development of the selection plan Selection sequence

8-6 Logic of Prediction: Past Performance Predicts Future Performance Not specific enough to make selection decisions – Job titles – Number of years of experience What counts is the specific types of experiences required and the level of success at each

8-7 Nature of Predictors Content – Sign: A predisposition thought to relate to performance (e.g., personality) – Sample: Observing behavior thought to relate to performance – Criterion: Actual measure of prior performance Form – Speed vs. power: How many versus what level – Paper / pencil vs. performance: Test in writing or in behavior – Objective vs. essay: Much like multiple-choice vs. essay course exam questions – Oral vs. written vs. computer: How data are obtained

8-8 Development of the Selection Plan: Steps Involved 1.Develop list of KSAOs required for job – KSAOs are provided by job requirements matrix 2.For each KSAO, decide if it needs to be assessed in the selection process 3.Determine method(s) of assessment to be used for each KSAO

Ex. 8.3 Assessment Methods by Applicant Flow Stage Initial assessment methods Minimize the costs associated with substantive assessment methods by reducing the number of people assessed 8-9

8-10 Discussion question to Consider A selection plan describes which predictor(s) will be used to assess the KSAOs required to perform the job. What are the three steps to follow in establishing a selection plan?

8-11 Resumes and Cover Letters Information provided is controlled by applicant – Information needs to be verified by other predictors to ensure accuracy and completeness Major issues – Large number received by organizations – Falsification and misrepresentation of information Lack of research exists related to – Validity or reliability – Costs – Adverse impact

8-12 Overview of Application Blanks Areas covered – Educational experience – Training – Job experience Key advantage -- Organization dictates information provided Major issue -- Information requested should – Be critical to job success and – Reflect KSAOs relevant to job Sample application blank - Exh. 8.4

Sample Application for Employment 8-13

8-14 Application Blanks Areas of special interest – Educational requirements Level of education GPA Quality of school Major field of study Extracurricular activities – Training and experience requirements – Licensing, certification, and job knowledge Weighted application blanks Evaluation --> ŕ =.10 to ŕ =.20

8-15 Biographical Information / Biodata Personal history information of applicant’s background and interests – “Best predictor of future behavior is past behavior” – Past behaviors may reflect ability or motivation Measures – Exh. 8.5: Examples of Biodata Items Biodata compared with background checks – Background check examines an applicant’s background conducted through records checks and conversations with references – Biodata used to predict future performance information is collected by survey

8-16 Exhibit 8.5 Examples of Biodata Items

8-17 Evaluation: Biographical Information / Biodata Test-retest reliability can be high:.77 to.90 Predictive validity moderate: r =.32 to.37 Issues – Generalizability beyond first group? – Although predictive validity exists, it is not clear what these inventories assess – Falsification can be a big problem

8-18 Reference Reports: Letters of Recommendation Problems – Inability to discern more-qualified from less-qualified applicants – Lack of standardization Suggestions to improve credibility – Use a structured form – Use a standardized scoring key

8-19 Reference Reports: Reference Checks Approach involves verifying applicant’s background via contact with – Prior immediate supervisor(s) or – HR department of current of previous companies Roughly 8 of 10 companies conduct reference checks Problems – Same as problems with letters of recommendation – Reluctance of companies to provide requested information due to legal concerns Exh. 8.7: Sample Reference Check

8-20 Reference Reports: Background Testing Method involves assessing reliability of applicants’ behavior, integrity, and personal adjustment Type of information requested – Criminal history – Credit information – Educational history – Employment verification – Driver license histories – Workers’ compensation claims Key issues – Limited validity evidence – Legal constraints on pre-employment inquiries

8-21 Evaluation of Reference Reports Predictive validity limited: r =.16 to.26 Validity depends on source providing information – HR department, coworker, or relative – Supervisors – What sources do you think work best? Cost vs. benefit of approach must be considered

8-22 Genetic screening Done to screen out people who are susceptible to certain diseases (e.g., sickle cell anemia) due to exposure to toxic substances at work Genetic screening is not widespread, companies such as Du Pont and Dow Chemical experimented with it to protect their employees Court decisions have ruled that genetic screening is prohibited under the Americans With Disabilities Act (ADA) – genetic testing is permissible only when consent has been granted by the applicant or when test results directly bear on an applicant’s ability to perform the job

8-23 Initial Interview Characteristics – Begins process of necessary differentiation – Purpose -- Screen out most obvious cases of person / job mismatches – Limitation -- Most expensive method of initial assessment Video and computer interviews – Offers cost savings

8-24 Evaluation of Initial Interview Minimal evidence exists regarding usefulness Guidelines to enhance usefulness – Ask questions assessing most basic KSAOs – Stick to basic, fundamental questions suitable for making rough cuts rather than subjective questions – Keep interviews brief – Ask same questions of all applicants

Choice of Initial Assessment Methods 8-25

8-26 Discussion questions to Consider In what ways are the following three initial assessment methods similar and in what ways are they different: application blanks, biographical information, and reference and background checks? Describe the criteria by which initial assessment methods are evaluated. Are some of these criteria more important than others? Some methods of initial assessment appear to be more useful than others. If you were starting your own business, which initial assessment methods would you use and why?

8-27 Legal Issues Disclaimers - Organization clearly identifies rights it wants to maintain – Employment-at-will – Verification consent – False statement warning Reference checks Preemployment inquiries – Federal laws and regulations EEOC Guide to Preemployment Inquiries ADA regulations State laws and regulations

8-28 Legal Issues Bona fide occupational qualifications - BFOQs – Discrimination based on sex, religion, or national origin, but not race or color, is permitted if it can be shown to be a BFOQ “reasonably necessary to the normal operation” of the business – Employer justifications Inability to perform Same-sex personal contact Customer preference Pregnancy or fertility

8-29 Discussion question to Consider How can organizations avoid legal difficulties in the use of preemployment inquiries in initial selection decisions?

8-30 Ethical Issues Issue 1 – Is it wrong to “pad” one’s résumé with information that, while not an outright lie, is an enhancement? For example, would it be wrong to term one’s job “maintenance coordinator” when in fact one simply emptied garbage cans? Issue 2 – Do you think employer have a right to check into applicants’ backgrounds? Even if there is no suspicion of misbehavior? Even if the job poses no security or sensitive risks? Even if the background check includes driving offenses and credit histories?

Week 6 Staffing Activities: Selection Chapter 9: External Selection II McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Staffing System and Retention Management Support Activities Legal compliance Planning Job analysis Core Staffing Activities Recruitment: External, internal Selection: Measurement, external, internal Employment: Decision making, final match Organization Mission Goals and Objectives Staffing Organizations Model 9-32

9-33 External Selection II Outline Substantive Assessment Methods – Personality Tests – Ability Tests – Emotional Intelligence Tests – Performance Tests and Work Samples – Situational Judgment Tests – Integrity Tests – Interest, Values, and Preference Inventories – Structured Interview – Choice of Substantive Assessment Methods Discretionary Assessment Methods Contingent Assessment Methods – Drug testing – Medical exams Legal Issues – Uniform Guidelines on Employee Selection Procedures – Selection Under the Americans With Disabilities Act (ADA) – Drug Testing

9-34 Learning Objectives for This Chapter Distinguish among initial, substantive, and contingent selection Review the advantages and disadvantages of personality and cognitive ability tests Compare and contrast work sample and situational judgment tests Understand the advantages of structured interviews and how interviews can be structured Review the logic behind contingent assessment methods and how they are administrated Understand the ways in which substantive and contingent assessment methods are subject to various legal rules and restrictions

Ex. 8.3 Assessment Methods by Applicant Flow Stage Substantive assessment methods Determining who among the minimally qualified will likely be the best performers on the job 9-35

9-36 Overview of Personality Tests Current role of personality tests e.g., role of Big Five – Describe behavioral, not emotional or cognitive traits – May capture up to 75% of an individual’s personality – Big Five factors (Personality Characteristics Inventory etc.) Emotional stability-calm, optimistic, and well adjusted Extraversion-sociable, assertive, active, upbeat, and talkative Openness to experience-imaginative, attentive to inner feelings, have intellectual curiosity and independence of judgment Agreeableness-altruistic, trusting, sympathetic, and cooperative Conscientiousness-purposeful, determined, dependable, and attentive to detail Roughly 50% of the variance in the Big Five traits appears to be inherited

9-37 Measures of Personality Tests Surveys – Personal Characteristics Inventory (PCI) – NEO Personality Inventory – Hogan Personality Inventory (HPI) Administration options – Paper-and-pencil – Interviews – Online forms

9-38 Ex. 9.1 Sample Items from the Personal Characteristics Inventory Conscientiousness – I can always be counted on to get the job done. – I am a very persistent worker. – I almost always plan things in advance of work. Extraversion – Meeting new people is enjoyable to me. – I like to stir up excitement if things get boring. – I am a “take-charge” type of person.

9-39 Ex. 9.1 Sample Items from the Personal Characteristics Inventory Agreeableness – I like to help others who are down on their luck. – I usually see the good side of people. – I forgive others easily. Emotional Stability – I can become annoyed at people quite easily (reverse-scored). – At times I don’t care about much of anything (reverse-scored). – My feelings tend to be easily hurt (reverse-scored). Openness to Experience – I like to work with difficult concepts and ideas. – I enjoy trying new and different things. – I tend to enjoy art, music, or literature.

9-40 Ex. 9.2 Implications of Big Five Personality Traits at Work

9-41 Criticisms of Personality Tests Trivial validities – Correlations for any individual trait with job performance are typically low (around r=.23) – However, when all traits are used simultaneously, correlations are higher Faking – Individuals answer in a dishonest way – However, tests still have some validity, and it may be that being able to “act” conscientiously may be related to real job performance Negative applicant reactions – Applicants, in general, believe personality tests are less valid predictors of job performance

9-43 Exhibit 9.3 The Core Self-Evaluations Scale

9-44 Overview of Ability Tests Definition -- Measures that assess an individual’s capacity to function in a certain way 15 to 20% of organizations use ability tests in selection Two types – Aptitude - Assess innate capacity to function – Achievement - Assess learned capacity to function

9-45 Overview of Ability Tests Four classes of ability tests – Cognitive: perception, memory, reasoning, verbal, math, expression – Psychomotor: thought/body movement coordination – Physical: strength, endurance, movement quality – Sensory/perceptual: detection & recognition of stimuli

9-46 Exhibit 9.4 Sample Cognitive Ability Test Items

9-47 Evaluation of Cognitive Ability Tests Validity approaches.50 Research findings – Among the most valid methods of selection – Often generalizes across organizations, job types, and types of applicants – Can produce large economic gains for organizations and provide major competitive advantage – Validity is particularly high for jobs of medium and high complexity but also exists for simple jobs – A simple explanation for validity: those with higher cognitive ability acquire and use greater knowledge

9-48 Limitations of Cognitive Ability Tests Concern over adverse impact and fairness of tests – Equally accurate predictors of job performance for various racial & ethnic groups – Blacks and Hispanics score lower than whites – This gap is narrowing somewhat over time – Alternative presentation formats (e.g., verbal tests) decrease differences in scores dramatically while producing nearly equivalent scores Applicants’ perceptions – Reactions to concrete vs. abstract test items

9-49 Other Types of Ability Tests Psychomotor ability tests – Reaction time, arm-hand steadiness, control precision, and manual and digit dexterity Physical abilities tests – Muscular strength, cardiovascular endurance, and movement quality Sensory/perceptual abilities tests – Ability to detect and recognize environmental stimuli Note: Increasingly, ability tests are being computer administered

9-50 Emotional Intelligence The ability to monitor one’s own and others’ feelings, to discriminate among them, and to use this information to guide one’s thinking and action – Self-awareness: Good at recognizing and understanding one’s own emotions – Other awareness: Good at recognizing and understanding others’ emotions – Emotion regulation: Good at making use of or managing this awareness

9-51 Emotional Intelligence A review of 59 studies indicated that, overall, EI correlated moderately with job performance Some critics argue that because EI is so closely related to intelligence and personality, once you control for these factors, EI has nothing unique to offer Still not clear whether these tests are useful

9-52 Performance Tests and Work Samples Definition -- Assess actual performance (e.g., fix a car, teach a class, type a document) Types of tests (should focus on relevant KSAOs) – Performance test vs. work sample (all or some) – Motor vs verbal work samples (action or thought) – High- vs. low-fidelity tests (level of realism) – Computer interaction performance tests vs. paper-and- pencil tests including simulations (e.g., The Manager’s Workshop) All the above can have good validity (.50+) & acceptance

9-53 Situational Judgment Tests Place applicants in hypothetical, job-related situations. Applicants are then asked to choose a course of action from several alternatives Capture the validity of work samples and cognitive ability tests in a way that is cheaper than work samples and that has less adverse impact than cognitive ability tests

9-55 Ex. 9.7: Example of Situational Judgment Test Item

9-56 Integrity Tests Two types (Exhibit 9.9) – Clear purpose / overt Do you think most people would cheat if they thought they could get away with it? Do you believe a person has a right to steal from an employer if he or she is unfairly treated? – Personality-based/veiled purpose Would you rather go to a party than read a newspaper? How often do you blush? Scores appear to reflect conscientiousness, agreeableness, and emotional stability

9-57 Integrity Tests Validity can be useful – Clear purpose as high as.55 predicting bad behaviors – General purpose as high as.32 predicting bad behaviors – Can predict performance as well (as high as.30) – Why would these predict general performance?

9-58 Interest, Values, and Preference Inventories Assess activities individuals prefer to do on & off the job; do not attempt to assess ability to do these Not often used in selection Can be useful for self-selection into job types Types of tests – Strong Vocational Interest Blank (SVIB) – Myers-Briggs Type Inventory (MBTI) Evaluation – Unlikely to predict job performance directly – May help assess person-organization fit & subsequent job satisfaction, commitment & turnover

9-59 Discussion question to Consider Describe the similarities and differences between personality tests and integrity tests. When is each warranted in the selection process? How would you advise an organization considering adopting a cognitive ability test for selection?

9-60 Typical Unstructured Interviews Relatively unplanned and “quick and dirty” Questions based on interviewer “hunches” or “pet questions” to assess applicants Casual, open-ended, or subjective questions Often contains obtuse questions Often contains highly speculative questions Interviewer often unprepared More potential for discrimination and bias Validity typically r=.20

9-61 Structured Interviews Questions based on job analysis Same questions asked of each candidate Response to each question numerically evaluated Detailed anchored rating scales used to score each response Detailed notes taken, focusing on interviewees’ behaviors Validity may be r=.30 or better Surprisingly uncommon in organizations

9-62 Structured Interviews (continued) Situational - Assess applicant’s ability to project his / her behaviors to future situations. Assumes the person’s goals/intentions will predict future behavior Experience-based - Assess past behaviors that are linked to prospective job. Assumes past performance will predict future performance Research is inconclusive regarding which type is best Individual interviews usually more valid than panel interviews

9-63 Constructing a Structured Interview Consult job requirements matrix Develop the selection plan – Exh. 9.10: Partial Selection Plan for Job of Retail Store Sales Associate Develop structured interview plan – Exh. 9.11: Structured Interview Questions, Benchmark Responses, Rating Scale, and Question Weights Select and train interviewers Evaluate effectiveness

9-65 Discussion questions to Consider Describe the structured interview. What are the characteristics of structured interviews that improve on the shortcomings of unstructured interviews?

9-66 Selection for Team Environments Types of teams – Problem-solving teams – Self-managed work teams – Cross-functional teams – Virtual teams Establish steps for selection in team-based environments Who should make the hiring decision? Critical to ensure proper context is in place

9-67 Selection for Team Environments Interpersonal KSAs – Conflict-Resolution KSAs – Collaborative Problem-­Solving KSAs – Communication KSAs Self-management KSAs – Goal-Setting and Performance­ Management KSAs – Planning and Task-Coordination KSAs

9-69 Exhibit 9.14 Evaluation of Substantive Assessment Methods

9-70 Discretionary Assessment Methods Used to separate people who receive job offers from list of finalists (assumes each finalist is considered fully qualified for position) Often very subjective, relying heavily on intuition of decision maker Factors other than KSAOs are evaluated – Assess person/organization match – Assess motivation level – Assess people on relevant organizational citizenship behaviors Should involve organization’s staffing philosophy regarding EEO/AA commitments

9-71 Contingent Assessment Methods “We offer you this job contingent upon ….” Contingent methods not always used – Depends on nature of job and legal mandates Might involve confirmation of – Drug test results – Medical exam results

9-72 Drug Testing The average drug user – was 3.6 times more likely to be involved in an accident – received 3 times the average level of sick benefits – was 5 times more likely to file a workers’ compensation claim – missed 10 times as many work days as nonusers – 31% of all fatal truck accidents were due to alcohol or drugs Drug testing has decreased in recent years because so few people test positive

9-73 Ex Example of a Drug Testing Program

9-74 Features of an effective drug testing program Emphasize drug testing in safety-­sensitive jobs Use only reputable testing laboratories, and ensure that strict chain of custody is maintained. Ask applicants for their consent, and inform them of test results Use retesting to validate positive samples from the initial screening test Ensure that proper procedures are followed to maintain the applicant’s right to privacy Review the program and validate the results against relevant criteria (accidents, absenteeism, turnover, job performance); conduct a cost-benefit analysis

9-76 Medical Exams Identify potential health risks in job candidates Must ensure medical exams are required only when a compelling reason exists – Ensures people with disabilities unrelated to job performance are not screened out Use is strictly regulated by ADA to ensure disabilities not job related are not screened out Usually lack validity as procedures vary by doctor Not always job related Often emphasize short- rather than long-term health New job-related medical standards are specific, job related, and valid

9-77 Discussion questions to Consider What are the most common discretionary and contingent assessment methods? What are the similarities and differences between the use of these two methods?

9-78 Legal Issues: Uniform Guidelines on Employee Selection Procedures (UGESP) General principles Technical standards Documentation of impact and validity evidence Definitions Makes substantial demands of a staffing system – Ensures awareness of possibility of adverse impact in employment decisions – If adverse impact is found, mechanisms provided to cope with it

9-79 Legal Issues: ADA and Drug Testing Selection under the Americans with Disabilities Act (ADA) – General principles – Access to job application process – Reasonable accommodation to testing – Medical examinations – Drug testing – UGESP Drug testing is permitted to detect illegal drug use and discipline/termination if found is OK

9-80 Medical Exams Identifies potential health risks in job candidates Important to ensure medical exams are required only when a compelling reason exists – Ensures people with disabilities unrelated to job performance are not screened out Use is strictly regulated by ADA Lack validity as procedures vary by doctor Not always job related Often emphasizes short- rather than long-term health New approach -- Job-related medical standards

9-81 Discussion question to Consider How should organizations apply the general principles of the UGESP to practical selection decisions?

9-82 Ethical Issues Issue 1 – Do you think it’s ethical for employers to select applicants on the basis of questions such as, “Dislike loud music” and “Enjoy wild flights of fantasy,” even if the scales that such items measure have been shown to predict job performance? Explain. Issue 2 – Cognitive ability tests are one of the best predictors of job performance, yet they have substantial adverse impact against minorities. Do you think it’s fair to use such tests? Why or why not?