Presentation on theme: "Chapter 5: Personnel Decisions"— Presentation transcript:
1 Chapter 5: Personnel Decisions Learning Objectives• Explain the social and legal context for personnel decisions.• Describe the process of personnel recruitment and affirmative action.• Understand the statistical concepts of regression analysis and multiple regression analysis.• Explain the concept and significance of validity generalization.• Describe the selection of employees and the process of assessing job applicants.• Identify issues pertaining to the determination of the passing score.• Explain the concept and significance of test utility related to organizational efficiency.• Describe the personnel functions of placement and classification.
16 Chapter Summary• Personnel decisions are decisions made in organizations that affect people’s work lives, such as selection, placement, and discharge.• All business organizations must make personnel decisions about their employees. Some organizations use less formal and scientifically based methods than others.• In the United States (and in most countries) personnel decisions are made within a strong legal context. Many laws protect the rights of individuals as employees.• Affirmative action is a social policy designed to achieve a diverse and productive workforce. There is much controversy and social debate about the merits of affirmative action.• Recruitment is the process by which individuals are encouraged to apply for work. The individuals selected for employment can be drawn only from those who have applied.• Two statistical procedures, regression and multiple regression analysis, are useful for making personnel selection decisions.• Validity generalization is the principle that the predictive capacity of a test generalizes or is applicable to a wide range of job applicants and employment contexts.• Because our tests do not have perfect validity, errors or mistakes in hiring occur. We can falsely hire a poor employee or falsely reject someone who would have been a good employee. True positives and negatives and false positives and negatives are useful concepts to consider in selection decisions.• It has been demonstrated that using valid personnel selection methods leads to large productivity gains for the hiring organization.• Placement and classification decisions refer to assigning workers to those jobs for which they are best suited.