Employee Testing And Selection

PART TWO                                                               RECRUITMENT AND PLACEMENT
CHAPTER		T Six
Employee Testing And Selection	6
Lecture Outline
Strategic Overview Why Careful Selection is Important Basic Testing Concepts Reliability Validity How to Validate a Test The Issue of Privacy Using Tests at Work Computer and Online Testing Types of Tests Tests of Cognitive Abilities Tests of Motor and Physical Abilities Measuring Personality and Interests Achievement Tests Work Samples and Simulations Work Sampling for Employee Selection Management Assessment Centers Video-Based Situational Testing Miniature Job Training and Evaluation Approach Background Investigations and Other Selection Background Investigations and Reference Checks       Using Pre-employment Information Services Background Information Graphology Physical Examination Testing and Selection Practices in Asia	In Brief: This chapter gives an overview of the selection process, testing concepts, types of tests, and selection techniques. It also addresses legal and ethical questions surrounding the area of testing and selection. Interesting Issues:  Most companies need reference and background information to make employment decisions, however, most companies also have policies against giving out any information on current or past employees beyond basic job titles and dates of employment.  Students need to see the tug-of-war between privacy rights and employer needs for background and predictive information.

ANNOTATED OUTLINE

I.          Why Careful Selection Is Important

Selecting the right employees is important for three main reasons.
1) employees with the right skills and attributes will perform more effectively; 2) the cost of making a wrong hire can become exhorbitant considering  the time and money invested in the selection and training process; and 3) the legal implications of incompetent or negligent hiring

II.         Basic Testing Concepts

            A.   Reliability refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests.

            B.   Validity refers to evidence that performance on a test is a valid predictor of subsequent performance on the job.

1.      Criterion Validity shows that scores on the test (predictors) are

       related to job performance.

                 2.    Content Validity shows that the test contains a fair sample of the tasks and skills actually needed for the job in question.

           

            C.  How to Validate a Test

                 1.    Analyze the Job and write job descriptions and job specifications.

                                   

                 2.    Choose the Tests that measure the attributes (predictors) important for job success.

                                   

                 3.    Administer the Test selected to old or new employees for concurrent and predictive validation.

           

                 4.    Relate Test Scores and Criteria through a correlation analysis, which shows the degree of statistical relationship between (1) scores on the test and (2) job performance.

                                   

                 5.    Cross-validate and Revalidate by performing steps 3 and 4 on a new sample of employees. Testing Guidelines: 1) use tests as supplements; 2) validate the tests; 3) monitor testing/selection program; 4) keep accurate records; 5) use a certified psychologist; 6) manage test conditions; and 7) revalidate periodically.

            D.  Using Tests at Work – Various types of tests are widely used by employers today.

            E. Computerized – Online Testing is increasingly replacing pencil-and-paper and manual tests.

III.        Types of Tests

            A.   Tests of Cognitive Abilities – Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning.

                 1.    Intelligence Tests are tests of general intellectual abilities ranging from memory, vocabulary, verbal fluency to numerical ability.

                 2.    Specific Cognitive Abilities (aptitude) include inductive and deductive reasoning, verbal comprehension, memory, and numerical ability.

            B.   Tests of Motor and Physical Abilities – Employers may use various tests to measure such motor abilities as finger dexterity, manual dexterity, and reaction time.  They  may also want to measure such physical abilities as static strength, dynamic strength, body coordination and stamina.

            C.   Measuring Personality and Interests – can be used to assess personal characteristics as attitude, motivation, and temperament.

                 1.    Effectiveness – The difficulties notwithstanding, personality tests can help companies do a better job of screening.

2.     The "Big Five" - Industrial psychologists emphasize five personality dimensions as they apply to personnel testing: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience. 

3.     Interest Inventories compare one’s interests with those of people in various occupations.

            D.  Achievement Tests – measure what a person has learned.

IV.        Work Samples and Simulations

            A.  Work Sampling for Employee Selection

                 1.    Rationale for Work Sampling – Work sampling technique measures how a candidate actually performs some of the job’s basic tasks making it harder for applicants to fake answers. This method tends to be fairer and exhibit better validity than test designed to predict performance.

                 2.    Developing a Work Sampling Procedure – The basic procedure is to choose several tasks crucial to performing the job in question and to test applicants on those identified tasks.

            B.  Management Assessment Centers

A two-to-three-day simulation in which 10 to 12 candidates perform realistic management tasks, under the observation of experts who appraise each candidate’s potential.

                                   

            C.   Video-Based Situational Testing typically presents the candidate with several scenarios, each followed by a multiple-choice question.

D.    The Miniature Job Training and Evaluation Approach involves training candidates to perform a sample of job tasks, and evaluating their performance.

When You’re on Your Own:  HR for Line Managers and Entrepreneurs.  Employee Testing and Selection. – In many firms, the HR department does little more than preliminary prescreening and followup with background checks, drug, and physical exams.  Managers who want to screen some of their own job applicants more formally can devise and use screening tools with obvious face validity.  Steps should be taken to keep within the guidelines discussed in this chapter.  There are a number of tools available that are easy to administrate.

V.         Background Investigations and Other Selection Techniques

A.   Background Investigations and Reference Checks – Most employers check and verify an applicant’s background information and references, including driving record, check for criminal charges or convictions, and credit check.

1.     Aims – The main reasons for conducting investigations into an applicant’s background are to verify factual information and to uncover damaging information to help prevent losses.

2.     Types of Background checks – Typically the applicant’s current and or former position and salary are verified.  Commercial credit companies and other services can provide information about credit standing, criminal, employment and education history. Employers often check social neworking site postings online. 

3.     Effectiveness – Reference letters are not viewed as very useful.  Fewer than half of HR managers state they were able to obtain adequate information about candidates.

4.     Legal issues: Defamation – Laws increase the likelihood that rejected applicants will have access to the background information.  The rejected applicant has various legal remedies including the right to sue for defamation.

5.     Legal Issues: Privacy – Employees can sue employers for disclosing true but embarrassing private facts to those without a need to know.

6.     Making Background and Checks More Useful – Employers should: include on their application forms a statement for applicants to sign explicitly authorizing a background check; rely more on telephone references than written ones; and use local investigation firms.  An example of a reference checking form is illustrated in Figure 6-9.

B.    Physical Examination – Once an offer is made and the person is hired, a
medical exam is usually the next step in the selection process.

C.    Complying with Immigration Law

TESTING AND SELECTION PRACTICES IN ASIA

In Asia, testing and selection practices vary from country to country. These practices are affected by the stage of economic development as well as cultural factors. In some cases, western companies have to modify their practices to suit local conditions.

A.    Hong Kong – Ranges from simple application form or resume to sophisticated tests and assessment centers.

B.    Japan – For mid-career jobs, companies evaluate applicants’ past experience, skills and professional knowledge. Interview is common.

C.    Malaysia – For high level jobs, applicants go through a series of tests (to measure their intelligence, aptitude, skills and personality)

D.    Singapore – Frequently used methods include weighted application form, reference check, interview and medical examination.

E.    South Korea – For managerial positions, selection process is competitive and rigorous.

F.    Thailand – Practices differ among American, Japanese and Thai companies

G.     Vietnam – Formal method: interview.  Emphasis on long-term commitment.

The HR Scorecard Strategy and Results:  The New Employee Testing Program – this feature shows how the Hotel International applied this chapter's ideas in creating a new testing process.

Hotel International

In this example, HR Director Li wants to design a battery of tests that will produce employees who can help the hotel to meet its strategic objectives.

KEY TERMS

negligent hiring                       Hiring workers with criminal backgrounds without proper safeguards.

reliability                                 The characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests.

test validity                              The accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill.

criterion validity                      A type of validity based on showing that scores on the test (predictors) are related to job performance.

content validity                        A test that is content--valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question.

expectancy chart                     A graph showing the relationship between test scores and job performance for a large group of people.

interest inventory                     A personal development and selection device that compares the person’s current interests with those of others now in various occupations so as to determine the preferred occupation for the individual.

work samples                          Actual job tasks used in testing applicants' performance. 

work sampling technique        A testing method based on measuring performance on actual job tasks.

management assessment        A situation in which management candidates are asked to make

center                                      decisions in hypothetical situations and are scored on their performance.  It usually also involves testing and the use of management games.