Part 4 Staffing Activities: Selection Chapter 9: External Selection II McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc., All Rights Reserved.

Staffing Organizations Model Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Recruitment: External, internal Planning Selection: Measurement, external, internal Job analysis Employment: Decision making, final match Staffing System and Retention Management 9-2

External Selection II Outline Substantive Assessment Methods Personality Tests Ability Tests Job Knowledge 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

Discussion Questions for This Chapter 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? Describe the structured interview. What are the characteristics of structured interviews that improve on the shortcomings of unstructured interviews? What are the most common discretionary and contingent assessment methods? What are the similarities and differences between the use of these two methods? How should organizations apply the general principles of the UGESP to practical selection decisions?

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 9-5

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

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

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.

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.

Ex. 9.2 Implications of Big Five Personality Traits at Work

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

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

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

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

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

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

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 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

Job Knowledge Tests Two types Evaluation Assess knowledge of duties involved in a particular job (i.e., test the knowledge level) Level of experience with, and knowledge about, critical job tasks and tools necessary to perform a job (i.e., test the amount of experience with the knowledge areas) Evaluation Validity can be as much as .45 Higher validities found for complex jobs

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

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

Ex. 9.7: Example of Situational Judgment Test Item

Integrity Tests Two types (Exhibit 9.8) 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

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?

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

Discussion questions 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?

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

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

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

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

Discussion questions Describe the structured interview. What are the characteristics of structured interviews that improve on the shortcomings of unstructured interviews?

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

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

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

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

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

Ex. 9.16 Example of a Drug Testing Program

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

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

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

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

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

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

Discussion questions How should organizations apply the general principles of the UGESP to practical selection decisions?

Ethical Issues Issue 1 Issue 2 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?