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1 Copyright © 2015 Pearson Education Ltd.
6 Employee Testing and Selection Human Resource Management 14th Edition, Global Edition The purpose of Chapter 6 is to explain how to use various tools to select the best candidates for the job. The main topics we’ll cover include selection, testing,background and reference checks, ethical and legal questions, types of tests,and work samples and simulations. Gary Dessler Copyright © 2015 Pearson Education Ltd.

2 Copyright © 2015 Pearson Education Ltd.
Learning Objectives Answer the question: Why is it important to test and select employees? Explain what is meant by reliability and validity. List and briefly describe the basic categories of selection tests, with examples. After studying this chapter, you will be able to: 1. Answer the question: Why is it important to test and select employees? 2. Explain what is meant by reliability and validity. 3.List and briefly describe the basic categories of selection tests, with examples. Copyright © 2015 Pearson Education Ltd.

3 Copyright © 2015 Pearson Education Ltd.
Learning Objectives Explain how to use two work simulations for selection. Describe four ways to improve an employer’s background checking process. After studying this chapter, you will be able to: 4. Explain how to use two work simulations for selection. 5. Describe four ways to improve an employer’s background checking process. Copyright © 2015 Pearson Education Ltd.

4 Answer the question: Why is it important to test and select employees?
After reviewing the applicants’ résumés, the manager turns to selecting the best candidate for the job. Copyright © 2015 Pearson Education Ltd.

5 Why Employee Selection Is Important
Performance Cost Legal obligations Person and job/organization fit First, employees with the right skills will perform better for you and the company. Second, it is important because it’s costly to recruit and hire employees. Financial services firm KeyBank knew it needed a better way to screen and select tellers and call-center employees. The company calculated it cost about $10,000 to select and train an employee, but it was losing 13% of new tellers and call-center employees within the first 90 days. That turnover number dropped to 4% after KeyBank implemented a virtual job tryout candidate assessment screening tool. “We calculated a $1.7 million cost savings in teller turnover in one year, simply by making better hiring decisions, reducing training costs and increasing quality of hires,” said the firm’s human resources director. Third, it’s important because mismanaging hiring has legal consequences. Person-job fit refers to identifying the knowledge, skills, abilities (KSAs), and competencies that are central to performing the job. Then we must match the KSAs to the prospective employee’s knowledge, skills, abilities, and competencies. Copyright © 2015 Pearson Education Ltd.

6 Copyright © 2015 Pearson Education Ltd.
Review Person-job fit Matching the knowledge, skills, abilities, and other competencies (KSACs) Employers Liability Act of 1969 Using the screening tools we discuss in this chapter: tests, assessment centers, and background and reference checks will reduce the applicant pool. The aim of employee selection is to achieve person-job fit. This means matching the knowledge, skills, abilities, and other competencies (KSACs) that are required for performing the job (based on job analysis) with the applicant’s KSACs. The Employers Liability Act of 1969 holds employers responsible for their employees’ health and safety at work. Because personality traits may predict problems such as unsafe behaviors and bullying, this Act makes careful employee selection even more advisable. The Basics of Testing and Selecting Employees Copyright © 2015 Pearson Education Ltd.

7 Explain what is meant by reliability and validity.
Now, we will discuss another form of evidence-based HR management, the definition and use of reliability and validity. Copyright © 2015 Pearson Education Ltd.

8 Basic Testing Concepts Copyright © 2015 Pearson Education Ltd.
Reliability Validity Criterion validity Content validity Construct validity A test is basically a sample of a person’s behavior. Using a test (or any selection tool) assumes the tool is both reliable and valid. Outback Steakhouse has used preemployment tests almost from when the company started. The testing seems successful. While annual turnover rates for hourly employees may reach 200% in the restaurant industry, Outback’s turnover ranges from 40% to 60%. Outback wants employees who are highly social, meticulous, sympathetic, and adaptable. They use a personality assessment test to screen out applicants who don’t fit the Outback culture. This test is part of a three-step preemployment screening process. Applicants take the test, and managers then compare the candidates’ results to the profile for Outback Steakhouse employees. Those who score low on certain traits (like compassion) don’t move to the next step. Those who score high are interviewed by two managers, who ask behavioral questions such as “What would you do if a customer asked for a dish we don’t have?” Copyright © 2015 Pearson Education Ltd.

9 Evidence-BasedHR: How to Validate a Test
Analyze Choose Administer Relate Cross-validate First, analyze the job and write job descriptions and job specifications. Your goal is to specify the human traits and skills (predictors) you believe are required for job performance. Next, decide how to test for the predictors and choose the tests. You usually will base this choice on experience, previous research, and “best guesses.” You likely will choose several tests and combine them into a test battery. One option is to administer the tests to employees currently on the job. You then compare their test scores with their current performance; this is concurrent (at the same time) validation. Its main advantage is that data on performance are readily available. Predictive validation is the second and more dependable way to validate a test. Here you administer the test to applicants before you hire them. Then hire these applicants using only existing selection techniques (such as interviews). You would not use the results of the new tests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores. Next, determine if there is a significant relationship between test scores (the predictor) and performance (the criterion). The usual way to do this is to use statistical testing. Finally, before using the test, you may want to check it by “cross-validating”—in other words, by again performing steps 3 and 4 on a new sample of employees. Copyright © 2015 Pearson Education Ltd.

10 Evidence-Based HR: Test Validation Issues
Who scores the test? Bias Utility analysis Validity generalization In many cases, certain tests are scored and interpreted by outside professionals. The results are then provided to the manager for consideration of whom to hire or promote. There may be bias in how the test measures the trait it purports to measure. If test scores indicate that males perform better in verbal reasoning tasks than do females, when in fact they both perform equally well, the test is biased. Second, “If the test used in college admissions systematically over predicts the performance of males and underpredicts the performance of females, [then] that test functions as a biased predictor.” Utility analysis simply answers the question, Does it pay to use a given test in a particular situation? In other words, if you use a specific test, will the quality of individuals selected be better than if you had not used the test? Validity generalization helps determine if a test is valid in one situation, will it be so in others. Or, will the test need to be re-validated? Especially for smaller employers, properly generalizing the validity of a test can be a business lifesaver. Copyright © 2015 Pearson Education Ltd.

11 Copyright © 2015 Pearson Education, Inc.
Review Reliability = consistency Validity = measuring what you intend to measure Measuring reliability generally involves comparing two measures that assess the same thing. It is typical to judge a test’s reliability in terms of a correlation coefficient (in this case, a reliability coefficient). Such a coefficient shows the degree to which the two measures (say, a test score one day and a test score the next day) are related. A selection test must be valid. Without proof of validity, there is no logical or legally permissible reason to continue using it to screen job applicants. Remember that a valid test is one that measures what you intend to measure. A typing test, for example, clearly would be a valid test of keyboarding skills. Copyright © 2015 Pearson Education, Inc.

12 Copyright © 2015 Pearson Education Ltd.
Review Statistical analysis Use professionals Rights and security Privacy Tests at work Computerized, online testing Remember, validating a test is not complicated, but it does take time and careful planning. Analyze the job and write job descriptions and specifications. Then choose how to test for predictors. Let experience, previous research, and “best guesses” guide you. You likely will choose several tests and combine them into a test battery. To administer the test properly, consider using it with your best performing employees who currently hold positions you seek to fill. Consider administering the test to applicants before you hire them. Then hire these applicants using your usual selection techniques (such as interviews) but not the results of the newtests. After they have been on the job for some time, measure their performance and compare it to their earlier test scores. Next, determine if there is a significant relationship between test scores and performance. The usual way to do this is to use statistical analysis. Finally, before using the test, you may want to check it by “cross-validating”—in other words, repeat steps 3 and 4 on a new sample of employees. Use professionals when needed, be aware of potential biased tests, keep cost-effectiveness in mind and properly generalize validity findings when testing. Such actions will make a significant difference in using tests effectively and efficiently. Remember that all employees and potential employees expect and have the right to privacy and security. Tests at work are designed to help both the employer and employee when it comes to promotions and job changes. Note the trend today is towards more online and computer-based test taking. Such computerized procedures can help with speed and accuracy. Copyright © 2015 Pearson Education Ltd.

13 Copyright © 2015 Pearson Education Ltd.
List and briefly describe the basic categories of selection tests, with examples. Lets look at what the tests are for the basic categories of employee selection. Copyright © 2015 Pearson Education Ltd.

14 Copyright © 2015 Pearson Education Ltd.
Types of Tests Cognitive abilities Intelligence tests Specific cognitive abilities Motor & physical abilities Measuring personality Interest inventories Achievement tests Cognitive tests include testing general reasoning ability or intelligence. In addition, they include tests of specific mental abilities such as memory or inductive reasoning. Intelligence tests are tests of general intellectual abilities. They measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability.There are also measures of specific cognitive abilities, such as deductive reasoning, verbal comprehension, memory, and numericalability. You also might need to measure motor abilities, such as finger dexterity, manual dexterity, and (if hiring pilots) reaction time. Personality tests measure basic aspects of an applicant’s personality. You should be a bit cautious about personality tests, however. In some cases, the tests may be somewhat difficult to interpret. Legal challenges also may present difficulties. Finally, some doubt exists as to whether self-reporting on a personality test can predict performance correctly. Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned. Achievement tests measure what someone has learned. Most of the tests you take in school are achievement tests. They measure your “job knowledge” in areas like economics, marketing, or human resources. Copyright © 2015 Pearson Education Ltd.

15 Copyright © 2015 Pearson Education Ltd.
What do personality tests measure? The “Big Five” Predicting performance Caveats Personality tests measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation. Some of these tests are projective. The psychologist presents an ambiguous stimulus (like an inkblot or clouded picture) to the person. The person then reacts to it. Other personality tests are self-reported: applicants complete them themselves. Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism,agreeableness, conscientiousness, and openness to experience. Personality traits can be predictive since they do often correlate with job performance. Other traits correlate with occupational success. For example, extraversion correlates with success in sales and management jobs. However, there are three caveats. First, projective tests are hard to interpret. An expert must analyze the test taker’s interpretations and make conclusions about his or her personality. Second, personality tests can trigger legal challenges. Third, some dispute that self-reported personality tests predict performance at all. Be aware of what you expect from a personality test and the caveats associated with it. Nonetheless, personality tests can be a valuable source of information. Copyright © 2015 Pearson Education Ltd.

16 Copyright © 2015 Pearson Education Ltd.
Review Cognitive abilities IQ Specific mental abilities Motor skills Personality Interests Achievement “Big 5” Predicting Caveats Interpretation Legal issues Disputing value Cognitive tests include tests of general reasoning ability and tests of specific mental abilities.Intelligence tests are tests of general intellectual abilities. There are also measures of specific cognitiveabilities. You also might need to measure motor abilities such as reaction times for pilots. Personality tests measure basic aspects of an applicant’s personality. Interest inventories compare one’s interests with those of people in various occupations. And, achievement tests measure what someone has learned. Industrial psychologists often focus on the “Big Five” personality dimensions: extraversion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience. Personality traits do often correlate with job performance. Other traits correlate with occupational success. However, there are three caveats: proper interpretation, legal issues, and disputes over the value of self-reporting. Copyright © 2015 Pearson Education Ltd.

17 Explain how to use two work simulations for selection.
With work samples, you present candidates with situations representative of the job for which they’re applying, and evaluate their responses. Let’s discuss. Copyright © 2015 Pearson Education Ltd.

18 Copyright © 2015 Pearson Education Ltd.
Work Samples and Simulations Basic procedure Situational judgment tests Management assessment centers Situational testing The basic procedure with work sampling is to select a sample of several tasks crucial to performing the job, and then test applicants on them. Situational judgment tests are personnel tests “…designed to assess an applicant’s judgment regarding a situation encountered in the workplace.”Situational judgment tests are effective and widely used. A management assessment center is a 2- to 3-day simulation in which 10 to 12 candidates perform realistic management tasks such as making presentations. The behaviors of the candidates are observed by experts who appraise each candidate’s leadership potential. Most experts view assessment centers as effective for selecting management candidates. However, they are quite costly in terms of money and time. Situational tests require examinees to respond to situations found on the job. Work sampling and some assessment center tasks fall into this category. Some of the testing may be video-based. Copyright © 2015 Pearson Education Ltd.

19 IMPROVING PERFORMANCE: HR Practices Around the Globe
1100 BC the Chinese government was testing civil service candidates China uses assessment centers to select employees Private employers use personnel tests, in-basket tests, and leaderless group discussions China’s experience shows that the idea of using rigorous testing and selection tools to choose the people who will perform best in particular jobs is a global phenomenon. It also shows that China has a modern system of employee selection, although it really began 3,000 years ago. In what ways do you think the questions you put on a selection test in China might differ from those on a test in the USA, and why? Copyright © 2015 Pearson Education Ltd.

20 Work samples and simulations Copyright © 2015 Pearson Education Ltd.
Computerized multimedia assessment Miniature job training and evaluation Realistic job previews Choosing a selection method Employers increasingly use computerized multimedia candidate assessment tools. We discussed some of these tools when we considered computerized tests and management assessment centers. Like work sampling, miniature job training and evaluation tests applicants with actual samples of the job. Miniature job training assumes that a candidate who demonstrates the ability to perform a sample of job tasks will be able to learn and perform the job itself. Sometimes, a dose of realism makes the best screening tool. Describing all aspects of the job, the nature of the working environment and even the company culture helps create a self-screening tool. In general, applicants who receive realistic job previews are more likely to turn down job offers if they do not like what they understand the job to be. Applicants who accept are then more likely to stay on the job. You may find that, even in large companies, when it comes to screening employees, you’re on your own. The human resource department may work with you to design and administer screening tests. However, HR may be able to do little more than the recruiting, prescreening, background checks, and arrange for drug and physical exams. If HR is not given proper resources, you have even more reason to understand and use the information we have been discussing. The employer needs to consider several things before choosing to use a particular selection tool (or tools). These include the tool’s reliability and validity, its return on investment (in terms of utility analysis), applicant reactions, usability, adverse impact, and the tool’s selection ratio (does it screen out, as it should, a high percentage of applicants or admit virtually all?). Copyright © 2015 Pearson Education Ltd.

21 Copyright © 2015 Pearson Education Ltd.
Review Situational judgment Assessment centers Situational testing Computers Miniature job training Realistic job previews Choose a selection method Situational judgment tests are used to assess the ability of a job candidate to react appropriately given a specific situation he or she will encounter on the job. Management assessment centers are used to determine the abilities of individuals to perform complex tasks. Typically, such centers are used for management and executive positions. While cost, time, and the use of professionally trained assessors are potential issues to consider, most experts agree they are worthwhile. Situational testing and video-based testing will involve situations that are presented to a job candidate. Such situations are realistic and typically derive from on-the-job situations. Computerized and web-based assessment allows speed and flexibility in the testing process. Miniature job training assumes a candidate can learn the job components and perform them quickly. Realistic job previews present the candidate with detailed and highly realistic information about the job and the environment. Realize, that as a manager, you may or may not have help from the HR department in selecting and assessing job candidates. Learning as much as possible about testing procedures will help in hiring the best candidates. Ultimately, the best candidates are usually the most productive, thus contributing to your department’s performance. The employer needs to consider several things before choosing to use a particular selection tool (or tools). These include the tool’s reliability and validity, its return on investment (in terms of utility analysis), applicant reactions, usability, adverse impact, and the tool’s selection ratio (does it screen out, as it should, a high percentage of applicants or admit virtually all?). Table 6-1 summarizes the validity, potential adverse impact, and cost of several popular assessment methods. The HR Tools feature shows how line managers may devise their own tests. Copyright © 2015 Pearson Education Ltd.

22 Copyright © 2015 Pearson Education Ltd.
Describe four ways to improve an employer’s background checking process. When hiring candidates, you will want the best ones to come to work for you. Checking backgrounds will help you make the right decisions. Testing is only part of an employer’s selection process. Other tools may include background investigations and reference checks, pre-employment information services, honesty testing, and substance abuse screening. Copyright © 2015 Pearson Education Ltd.

23 Background Investigations Copyright © 2015 Pearson Education Ltd.
Why perform checks? Effectiveness Legal dangers Defamation (damaging the good reputation of someone) Privacy How to check One of the easiest ways to avoid hiring mistakes is to check the candidate’s background thoroughly. Doing so is cheap and (if done right) useful. There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information. In terms of effectiveness, however, most managers don’t view references as very useful. This makes sense, given that few employers will talk freely about former employees for legal or ethical reasons. That is just the tip of the iceberg, however. Being sued for defamation is the real danger. First-line supervisors and managers, not just employers, are potentially at risk. As a rule, only authorized managers should provide information. Most employers at least try to verify an applicant’s position and salary with his or her current or former employer by phone. Others call the applicant’s current and previous supervisors for information Copyright © 2015 Pearson Education Ltd.

24 IMPROVING PERFORMANCE: HR Tools for Line Managers and Entrepreneurs
Make the Background Check More Valuable Use a statement to authorize a background check Compare the application to the résumé Write open-ended questions Lets discuss how to put more effort into the background check that can reduce costs. Include on the application form a statement for applicants to sign explicitly authorizing a background check, such as: I hereby certify that the facts set forth in the above employment application are true and complete to the best of my knowledge. I understand that falsified statements or misrepresentation of information on this application or omission of any information sought may be cause for dismissal, if employed, or may lead to refusal to make an offer and/or to withdrawal of an offer. I also authorize investigation of credit, employment record, driving record, and, once a job offer is made or during employment, workers’ compensation background if required. ● Telephone references tend to produce more candid assessments), so it’s probably best to rely on telephone references. Use a form, such as Figure 6-9. Remember that you can get relatively accurate information regarding dates of employment, eligibility for rehire, and job qualifications. It’s more difficult to get other background information (such as reasons for leaving a previous job). ● Persistence and attentiveness to potential red flags improves results. For example, if the former employer hesitates or seems to qualify his or her answer, don’t go on to the next question. Try to unearth what the applicant did to make the former employer pause. If he says, “Joe requires some special care,” say, “Special care?” ● 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. ● Try to ask open-ended questions (such as, “How much structure does the applicant need in his/ her work?”) in order to get the references to talk more about the candidate. But in asking for information: Only ask for and obtain information that you’re going to use. Remember that using arrest information is highly suspect. Use information that is specific and job related. Keep information confidential. ● Ask the references supplied by the applicant to suggest other references. You might ask each of the applicant’s references, “Could you give me the name of another person who might be familiar with the applicant’s performance?” Then you begin getting information from references that may be more objective, because they did not come directly from the applicant. Evaluate Figure 6-9; what other questions would you ask, and why? Copyright © 2015 Pearson Education Ltd.

25 Background Investigations Copyright © 2015 Pearson Education Ltd.
Applicants’ social postings Pre-employment information services The polygraph and honesty testing Paper-and-Pencil Honesty Tests  Graphology More employers are Googling applicants or checking social networking sites. Googling is probably safe enough, but checking social networking sites raises legal issues. Your best strategy to protect your company (and yourself) is to advise a job candidate that your policies require performing such checks. The applicant, of course, may refuse. In that case, you may not wish to pursue a particular candidate further. Information services use databases to access information about matters such as workers’ compensation and credit histories. Before requesting reports, the employer must disclose to the applicant or employee that a report will be requested. The employer must certify to the reporting agency that the employer will comply with the federal and state legal requirements. Under federal law, the employer also must provide copies of the report to the applicant or employee if requested. Some firms still use the polygraph (or lie detector) for honesty testing, although the law severely restricts its use. Federal agencies (such as the FBI) may use such devices for hiring decisions. Paper-and-pencil tests also can be used to check for honesty. Paper-and-Pencil Honesty Tests These are psychological tests designed to predict job applicants’ proneness to dishonesty and other forms of counter productivity. Most measure attitudes regarding things like tolerance of others who steal, and admission of the theft-related activities. Graphology is the use of handwriting analysis to determine the writer’s basic personality traits. Graphology thus has some resemblance to projective personality tests, althoughgraphology’s validity is highly suspect. Copyright © 2015 Pearson Education Ltd.

26 IMPROVING PERFORMANCE: HR Tools for Line Managers and Entrepreneurs
Testing for Honesty Question Listen Credit, employment and reference check Test Policies Testing for Honesty With or without testing, there’s a lot a manager or employer can do to screen out dishonest applicants or employees. ● Ask blunt questions. Says one expert, there is nothing wrong with asking the applicant direct questions, such as, “Have you ever stolen anything from an employer?” “Have you recently held jobs other than those listed on your application?” “Is any information on your application misrepresented or falsified?” ● Listen, rather than talk. You want to learn as much about the person as possible. ● Do a credit check. Include a clause in your application giving you the right to conduct background checks, including credit checks and motor vehicle reports. ● Check all employment and personal references. ● Use paper-and-pencil honesty tests and psychological tests. ● Test for drugs. Devise a drug-testing program and give each applicant a copy of the policy. ● Establish a search-and-seizure policy and conduct searches. Give each applicant a copy of the policy and require each to return a signed copy. The policy should state, “All lockers, desks, and similar property remain the property of the company and may be inspected routinely.” What other blunt questions do you think would be appropriate? Copyright © 2015 Pearson Education Ltd.

27 Copyright © 2015 Pearson Education Ltd.
Background Investigations “Human lie detectors” Physical exams Substance abuse screening Some Practical Considerations  Complying with immigration law Proof of Eligibility While perhaps no more valid than graphology, some employers are using so-called “human lie detectors.” These are experts who claim to be able to identify lying just by watching candidates. Once the employer extends the person a job offer, a medical exam is often the next step in the selection process. In addition, many employers conduct drug screenings. The most common practice is to test candidates just before they’re formally hired. Some companies advise the candidate that a job offer is contingent upon successful completion of a drug screening test. Some Practical Considerations Drug testing, while ubiquitous, is neither as simple nor effective as it might appear. First, no drug test is foolproof. Also, tests for drugs only show whether drug residues are present, not if they will impact the individual in the workplace. Drug testing raises legal issues, too. Several federal (and manystate) laws affect workplace drug testing. Proof of Eligibility Applicants can prove their eligibility for employment in two ways. One is to show a document (such as a U.S. passport or alien registration card with photograph) that proves both identity and employment eligibility. The other is to show a document that proves the person’s identity, along with a second document showing his or her employment eligibility, such as a work permit. In any case, it’s always advisable to get two forms of proof of identity. Most employers also use their applicant tracking systems (ATS) or Human Resource Information Systems (HRIS) to improve productivity. In some cases, an ATS is used to “knock out” applicants who don’t meet minimum, nonnegotiable job requirements. Employers also use ATS to test and screen applicants online. This includes skills testing (in accounting, for instance), cognitive skills testing and even psychological testing. Copyright © 2015 Pearson Education Ltd.

28 Copyright © 2015 Pearson Education Ltd.
Review Why perform checks? Effectiveness Legal dangers How to check Social postings Information services There are two main reasons to check backgrounds—to verify the applicant’s information and to uncover damaging information. You, as a manager must be concerned with potential defamation and privacy issues. Remember, checking social networking sites raises legal issues. Information services use databases to access information. Copyright © 2015 Pearson Education Ltd.

29 Copyright © 2015 Pearson Education Ltd.
Review Honesty testing Graphology “Human lie detectors” Physicals/drugs Immigration HRIS Some firms still use the polygraph (or lie detector) for honesty testing. Graphology is the use of handwriting analysis to determine the writer’s basic personality traits but presents reliability and validity issues. Some employers are using so-called “human lie detectors.” Two other considerations are the uses of medical exams and drug screenings. Final job offers may be made contingent upon successful completion of these two tests. Employees hired in the United States must prove they are eligible to work in the United States. Finally, Human Resource Information Systems (HRIS) may be used in tracking candidates as well as maintaining employee records. An Applicant Tracking System (ATS) is usually a component of an effective HRIS. Such a system may be used to exclude candidates who don’t meet the minimum job requirements. An HRIS also will be used to maintain records for internal employee tracking and external reports such as those for EEOC reporting. Copyright © 2015 Pearson Education Ltd.

30 Improving Performance at Copyright © 2015 Pearson Education Ltd.
The Hotel Paris Provide a detailed example of a security guard work sample test. Provide a detailed example of two personality test items you would suggest they use, and why you would suggest using them. The New Employee Testing Program As she considered what to do next, Lisa Cruz, the Hotel Paris’s HR director, knew that employee selection had to play a role. The Hotel Paris currently had an informal screening process in which local hotel managers obtained application forms, interviewed applicants, and checked their references. However, a pilot project using an employment test for service people at the Chicago hotel had produced startling results. Lisa found consistent, significant relationships between test performance and a range of employee competencies and behaviors such as speed of check-in/out, employee turnover, and percentage of calls answered with the required greeting. She knew that such employee capabilities and behaviors translated into the improved guest service performance the Hotel Paris needed to execute its strategy. She therefore had to decide what selection procedures would be best. Copyright © 2015 Pearson Education Ltd.

31 Improving Performance at Copyright © 2015 Pearson Education Ltd.
The Hotel Paris What other tests would you suggest to Lisa, and why would you suggest them? How would you suggest Lisa try to confirm that it is indeed the testing and not some other change that accounts for the improved performance. The New Employee Testing Program Lisa’s team, working with an industrial psychologist, designs a test battery that they believe will produce the sorts of high-morale, patient, people-oriented employees they are looking for. It includes a preliminary, computerized test in which applicants for the positions of front desk clerk, door person, assistant manager, and security guard must deal with an apparently irate guest; a work sample in which front-desk clerk candidates spend 10 minutes processing an incoming “guest”; a personality test aimed at weeding out applicants who lack emotional stability; the Wonderlic test of mental ability; and the Phase II Profile for assessing candidate honesty. Their subsequent validity analysis shows that scores on the test batteries predict scores on the hotel’s employee capabilities and behavior metrics. A second analysis confirmed that, as the percentage of employees hired after testing rose, so too did the hotel’s employee capabilities and behaviors scores, for instance (see the strategy map), in terms of speed of check-in/out, and the percent of guests receiving the Hotel Paris required greeting. These improvements in behaviors also led to Improvements in profits. Copyright © 2015 Pearson Education Ltd.

32 Copyright © 2015 Pearson Education Ltd.
Hotel Paris Strategy Chapter 6 Hotel Paris Strategy Chapter 6 Copyright © 2015 Pearson Education Ltd.

33 Copyright © 2015 Pearson Education Ltd.


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