1. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R © 2008 Prentice Hall, Inc. All rights reserved. Employee Testing and Selection Chapter 6 Part 2 | Recruitment and Placement

2. © 2008 Prentice Hall, Inc. All rights reserved.6–2 After studying this chapter, you should be able to: 1.Explain what is meant by reliability and validity. 2.Explain how you would go about validating a test. 3.Cite and illustrate our testing guidelines. 4.Give examples of some of the ethical and legal considerations in testing. 5.List eight tests you could use for employee selection, and how you would use them. 6.Explain the key points to remember in conducting background investigations.

3. © 2008 Prentice Hall, Inc. All rights reserved.6–3 Why Careful Selection is Important Organizational Performance Legal Obligations and Liability The Importance of Selecting the Right Employees Costs of Recruiting and Hiring

4. © 2008 Prentice Hall, Inc. All rights reserved.6–4 Avoiding Negligent Hiring Claims Carefully scrutinize information on employment applications.Carefully scrutinize information on employment applications. Get written authorization for reference checks, and check references.Get written authorization for reference checks, and check references. Save all records and information about the applicant.Save all records and information about the applicant. Reject applicants for false statements or conviction records for offenses related to the job.Reject applicants for false statements or conviction records for offenses related to the job. Balance the applicant’s privacy rights with others’ “need to know.”Balance the applicant’s privacy rights with others’ “need to know.” Take immediate disciplinary action if problems arise.Take immediate disciplinary action if problems arise.

5. © 2008 Prentice Hall, Inc. All rights reserved.6–5 Basic Testing Concepts ReliabilityReliability  Consistency of scores obtained by the same person when retested with identical or equivalent tests.  Are test results stable over time? ValidityValidity  Indicates whether a test is measuring what it is supposed to be measuring.  Does the test actually measure what it is intended to measure?

6. © 2008 Prentice Hall, Inc. All rights reserved.6–6 FIGURE 6–1Sample Picture Card from Thematic Apperception Test Source: Reprinted by permission of the publishers from Henry A. Murray, THEMATIC APPERCEPTION TEST, Plate 12F, Cambridge, Mass: Harvard University Press, 1943.

7. © 2008 Prentice Hall, Inc. All rights reserved.6–7 Types of Validity Criterion Validity Content Validity Test Validity Face Validity

8. © 2008 Prentice Hall, Inc. All rights reserved.6–8 How to Validate a Test 1 Relate Your Test Scores and Criteria: scores versus actual performance Choose the Tests: test battery or single test Steps in Test Validation Analyze the Job: predictors and criteria Administer the Tests: concurrent or predictive validation 234 Cross-Validate and Revalidate: repeat Steps 3 and 4 with a different sample 5

9. © 2008 Prentice Hall, Inc. All rights reserved.6–9 FIGURE 6–2Examples of Web Sites Offering Information on Tests or Testing Programs www.hr-guide.com/data/G371.htm Provides general information and sources for all types of employment tests. http://buros.unl.edu/buros/jsp/search.jsp Provides technical information on all types of employment and nonemployment tests. www.ets.org/testcoll Provides information on over 20,000 tests. www.kaplan.com Information from Kaplan test preparation on how various admissions tests work. www.assessments.biz One of many firms offering employment tests.

10. © 2008 Prentice Hall, Inc. All rights reserved.6–10 FIGURE 6–3Expectancy Chart Note: This expectancy chart shows the relation between scores made on the Minnesota Paper Form Board and rated success of junior draftspersons. Example: Those who score between 37 and 44 have a 55% chance of being rated above average and those scoring between 57 and 64 have a 97% chance.

11. © 2008 Prentice Hall, Inc. All rights reserved.6–11 TABLE 6–1Testing Program Guidelines 1.Use tests as supplements. 2.Validate the tests. 3.Monitor your testing/selection program. 4.Keep accurate records. 5.Use a certified psychologist. 6.Manage test conditions. 7.Revalidate periodically.

12. © 2008 Prentice Hall, Inc. All rights reserved.6–12 Test Takers’ Individual Rights and Test Security Under the APA’s standard for educational and psychological tests, test takers have the right:Under the APA’s standard for educational and psychological tests, test takers have the right:  To privacy and information.  To the confidentiality of test results.  To informed consent regarding use of these results.  To expect that only people qualified to interpret the scores will have access to them.  To expect the test is fair to all.

13. © 2008 Prentice Hall, Inc. All rights reserved.6–13 Legal Privacy Issues DefamationDefamation  Libeling or slandering of employees or former employees by an employer. Avoiding Employee Defamation SuitsAvoiding Employee Defamation Suits 1. Train supervisors regarding the importance of employee confidentiality. 2. Adopt a “need to know” policy. 3. Disclose procedures impacting confidentially of information to employees.

14. © 2008 Prentice Hall, Inc. All rights reserved.6–14 FIGURE 6–4Sample Test Source: Courtesy of NYT Permissions.

15. © 2008 Prentice Hall, Inc. All rights reserved.6–15 Using Tests at Work Major Types of TestsMajor Types of Tests  Basic skills tests  Job skills tests  Psychological tests Why Use Testing?Why Use Testing?  Increased work demands = more testing  Screen out bad or dishonest employees  Reduce turnover by personality profiling

16. © 2008 Prentice Hall, Inc. All rights reserved.6–16 Computerized and Online Testing Online testsOnline tests  Telephone prescreening  Offline computer tests  Virtual “inbox” tests  Online problem solving tests Types of TestsTypes of Tests  Specialized work sample tests  Numerical ability tests  Reading comprehension tests  Clerical comparing and checking tests

17. © 2008 Prentice Hall, Inc. All rights reserved.6–17 Types of Tests Cognitive (Mental) Abilities Achievement Motor and Physical Abilities Personality and Interests What Tests Measure

18. © 2008 Prentice Hall, Inc. All rights reserved.6–18 FIGURE 6–5Type of Question Applicant Might Expect on a Test of Mechanical Comprehension

19. © 2008 Prentice Hall, Inc. All rights reserved.6–19 FIGURE 6–6Sample Personality Test Items Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 9.

20. © 2008 Prentice Hall, Inc. All rights reserved.6–20 The “Big Five” Extraversion Emotional Stability/ Neuroticism Agreeableness Openness to Experience Conscientiousness

21. © 2008 Prentice Hall, Inc. All rights reserved.6–21 FIGURE 6–7Example of a Work Sampling Question

22. © 2008 Prentice Hall, Inc. All rights reserved.6–22 Work Samples and Simulations Work Samples Miniature Job Training and Evaluation Management Assessment Centers Video-Based Situational Testing Measuring Work Performance Directly

23. © 2008 Prentice Hall, Inc. All rights reserved.6–23 TABLE 6–2Evaluation of Assessment Methods on Four Key Criteria Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 17. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center. Assessment MethodValidityAdverse Impact Costs (Develop/ Administer) Applicant Reactions Cognitive ability testsHighHigh (against minorities)Low/lowSomewhat favorable Job knowledge testHighHigh (against minorities)Low/lowMore favorable Personality testsLow to moderate LowLow/lowLess favorable Biographical data inventories ModerateLow to high for different typesHigh/lowLess favorable Integrity testsModerate to high LowLow/lowLess favorable Structured interviewsHighLowHigh/highMore favorable Physical fitness testsModerate to high High (against females and older workers) High/highMore favorable Situational judgment testsModerateModerate (against minorities)High/lowMore favorable Work samplesHighLowHigh/highMore favorable Assessment centersModerate to high Low to moderate, depending on exercise High/highMore favorable Physical ability testsModerate to high High (against females and older workers) High/highMore favorable Note: There was limited research evidence available on applicant reactions to situational judgment tests and physical ability tests. However, because these tests tend to appear very relevant to the job, it is likely that applicant reactions to them would be favorable.

24. © 2008 Prentice Hall, Inc. All rights reserved.6–24 Background Investigations and Reference Checks Investigations and ChecksInvestigations and Checks  Reference checks  Background employment checks  Criminal records  Driving records  Credit checks Why?Why?  To verify factual information provided by applicants.  To uncover damaging information.

25. © 2008 Prentice Hall, Inc. All rights reserved.6–25 FIGURE 6–8 Reference Checking Form Source: Society for Human Resource Management, © 2004. Reproduced with permission of Society for Human Resource Management in the Format Textbook via Copyright Clearance Center.

26. © 2008 Prentice Hall, Inc. All rights reserved.6–26 Background Investigations and Reference Checks (cont’d) Former Employers Current Supervisors Written References Social Networking Sites Commercial Credit Rating Companies Sources of Information

27. © 2008 Prentice Hall, Inc. All rights reserved.6–27 Limitations on Background Investigations and Reference Checks Background Investigations and Reference Checks Supervisor Reluctance Employer Guidelines Legal Issues: Privacy Legal Issues: Defamation

28. © 2008 Prentice Hall, Inc. All rights reserved.6–28 Making Background Checks More Useful 1.Include on the application form a statement for applicants to sign explicitly authorizing a background check. 2.Use telephone references if possible. 3.Be persistent in obtaining information. 4.Use references provided by the candidate as a source for other references. 5.Ask open-ended questions to elicit more information from references.

29. © 2008 Prentice Hall, Inc. All rights reserved.6–29 Using Preemployment Information Services 1 Notice of adverse action to applicant/employee Employer certification to reporting agency Acquisition and Use of Background Information Disclosure to and authorization by applicant/employee Providing copies of reports to applicant/employee 234

30. © 2008 Prentice Hall, Inc. All rights reserved.6–30 TABLE 6–3Collecting Background Information Suggestions for collecting background information include the following: 1.Check all applicable state laws. 2.Review the impact of federal equal employment laws. 3.Remember the Federal Fair Credit Reporting Act. 4.Do not obtain information that you’re not going to use. 5.Remember that using arrest information will be highly suspect. 6.Avoid blanket policies (such as “we hire no one with a record of workers’ compensation claims”). 7.Use information that is specific and job related. 8.Keep information confidential and up to date. 9.Never authorize an unreasonable investigation. 10.Make sure you always get at least two forms of identification from the applicant. 11.Always require applicants to fill out a job application. 12.Compare the application to the résumé (people tend to be more imaginative on their résumés than on their application forms, where they must certify the information). 13.Particularly for executive candidates, include background checks of such things as involvement in lawsuits, and of articles about the candidate in local or national newspapers. 14.Separate the tasks of (1) hiring and (2) doing the background check (a recruiter or supervisor anxious to hire someone may cut corners when investigating the candidate’s background). Source: Adapted from Jeffrey M. Hahn, “Pre-Employment Services: Employers Beware?” Employee Relations Law Journal 17, no. 1 (Summer 1991), pp. 45–69; and Shari Caudron, “Who Are You Really Hiring?”, Workforce, 81, no. 12 (November 2002), pp. 28–32.

31. © 2008 Prentice Hall, Inc. All rights reserved.6–31 The Polygraph and Honesty Testing Employee Polygraph Protection Act of 1988Employee Polygraph Protection Act of 1988  Generally prohibits polygraph examinations by all private employers unless:  The employer has suffered an economic loss or injury.  The employee in question had access to the property.  There is a reasonable prior suspicion.  The employee is told the details of the investigation, as well as questions to be asked on the polygraph test itself.  Exceptions:  Private security employees  Employees with access to drugs  National defense and security (FBI, DOE, and DOJ)

32. © 2008 Prentice Hall, Inc. All rights reserved.6–32 Honesty Testing Programs: What Employers Can Do Antitheft Screening Procedure:Antitheft Screening Procedure:  Ask blunt questions.  Listen, rather than talk.  Do a credit check.  Check all employment and personal references.  Use paper-and-pencil honesty tests and psychological tests.  Test for drugs.  Establish a search-and-seizure policy and conduct searches.

33. © 2008 Prentice Hall, Inc. All rights reserved.6–33 FIGURE 6–9Handwriting Exhibit Used by Graphologist Source: Kathryn Sackhein, Handwriting Analysis and the Employee Selection Process (New York: Quorum Books, 1990), p. 45. Reproduced with permission of Greenwood Publishing Group, Inc.

34. © 2008 Prentice Hall, Inc. All rights reserved.6–34 Physical Examination Reasons for preemployment medical examinations:Reasons for preemployment medical examinations:  To verify that the applicant meets the physical requirements of the position.  To discover any medical limitations to be taken into account in placing the applicant.  To establish a record and baseline of the applicant’s health for future insurance or compensation claims.  To reduce absenteeism and accidents.  To detect communicable diseases that may be unknown to the applicant.

35. © 2008 Prentice Hall, Inc. All rights reserved.6–35 Substance Abuse Screening Types of ScreeningTypes of Screening  Before formal hiring  After a work accident  Presence of obvious behavioral symptoms  Random or periodic basis  Transfer or promotion to new position Types of TestsTypes of Tests  Urinalysis  Hair follicle testing

36. © 2008 Prentice Hall, Inc. All rights reserved.6–36 Substance Abuse Screening (cont’d) Safety: Impairment vs. Presence Recreational Use vs. Addiction Americans with Disabilities Act Drug Free Workplace Act of 1988 Intrusiveness of Procedures Accuracy of Tests Ethical and Legal Issues

37. © 2008 Prentice Hall, Inc. All rights reserved.6–37 FIGURE 6–10Procedure in Complying with Immigration Law 1.Hire only citizens and aliens lawfully authorized to work in the United States. 2.Advise all new job applicants of your policy. 3.Require all new employees to complete and sign the verification form (the “I-9 form”) designated by the Immigration and Naturalization Service (INS) to certify that they are eligible for employment. 4.Examine documentation presented by new employees, record information about the documents on the verification form, and sign the form. 5.Retain the form for three years or for one year past the employment of the individual, whichever is longer. 6.If requested, present the form for inspection by INS or Department of Labor officers. No reporting is required.

38. © 2008 Prentice Hall, Inc. All rights reserved.6–38 Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening Systems “Knock out” applicants who do not meet job requirements Can match “hidden talents” of applicants to available openings Benefits of Applicant Tracking Systems Allow employers to extensively test and screen applicants online

39. © 2008 Prentice Hall, Inc. All rights reserved.6–39 FIGURE 6–11Checklist: What to Look for in an Applicant Tracking System (ATS) The employer thinking of adopting an ATS should seek one that meets several minimum functionality requirements. Among other things, the ATS should be: Easy to use. Capable of being integrated into the company’s existing HRIS platform, so that, for instance, data on a newly hired candidate can flow seamlessly into the HRIS payroll system. Able to capture, track, and report applicant EEO data. Able to provide employee selection performance metrics reports, including “time to fill,” “cost to hire,” and “applicant source statistics.” Able to facilitate scheduling and tracking of candidate interviews, email communications, and completed forms, including job offers. Able to provide automated screening and ranking of candidates based upon job skill profiles. Able to provide an internal job posting service that supports applications from current employees and employee referral programs. Able to cross-post jobs to commercial job boards such as www.monster.com. Able to integrate the ATS job board with your company’s own Web site, for instance, by linking it to your site’s “careers” section. Able to provide for requisition creation and signoff approvals.

40. © 2008 Prentice Hall, Inc. All rights reserved.6–40 K E Y T E R M S negligent hiring reliability test validity criterion validity content validity expectancy chart interest inventory work samples work sampling technique management assessment center situational test video-based simulation miniature job training and evaluation