Snell_18e_PPT_Instructor_Ch06.pptx

Chapter 6

Employee Selection

Learning Outcomes
After studying this chapter, you should be able to
Explain what the objectives of the employee selection process are, its steps, and why the information gathered during the process must be reliable and valid.
Describe the tools used to screen applicants, the types of employment interviews and methods to administer them, and the post-interview screening tools firms use.
Compare the value of different types of employment tests and how their validity and reliability are assessed.
Explain how firms evaluate the information they collect on candidates and the decision strategies they use to select employees.

Discussion Starter #1

Like other organizations, the Marine Corp has had to ensure its physical abilities tests are job related.
Why is it important for companies to make sure physical ability tests are job related?
Provide three examples of jobs in which a physical ability test would be necessary.

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ANSWER: Physical ability tests must be used cautiously. In the past, requirements for physical characteristics such as strength, agility, height, and weight were often determined by an employer’s unvalidated notion of what should be required. This often put women and disabled job applicants at a disadvantage. A Dial Corp. plant began using a strength test, and the company was sued after the percentage of women hired dropped dramatically. An appeals court ruled the test had a disparate impact on women. Because of situations such as these, physical requirements have been questioned and modified so as to represent typical job demands.

Students’ examples of jobs will vary. Examples that students might list may include demanding and potentially dangerous jobs in which physical abilities such as strength and endurance tend to be good predictors not only of performance but also of accidents and injuries, such as firefighters and police officers.

6.1 Overview of the Selection Process
Selection – The process of choosing individuals who are qualified to fill existing or protected job openings

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Figure 6.1: The Goal of Selection: Maximize “Hits”

Section 6.1: Overview of the Selection Process
Figure 6.1 shows that the overall goal of selection is to maximize “hits” and avoid “misses.” Hits are accurate predictions, and misses are inaccurate ones. The cost of one type of miss would be the expense of hiring an employee who turns out to be unsuccessful. The cost of the other type of miss is an opportunity cost—someone who could have done a great job but did not get the chance to do so.
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6.1a Begin with a Job Analysis
Job specifications help identify the competencies employees need for success—the knowledge, skills, abilities, and other factors (KSAOs) that lead to superior performance.
Managers then use selection methods such as interviews, references, and preemployment tests to measure applicants’ KSAOs against the competencies required for the job.
Complete and clear job specifications help interviewers differentiate between qualified and unqualified applicants and reduce the effect of an interviewer’s biases and prejudices.
Applicants whose KSAOs are well matched to the jobs they are hired for are also found to perform better and be more satisfied.

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6.1b Steps in the Selection Process
The steps in the selection process and their sequence will vary, not only with the organization, but also with the type of job being filled.
Organizations gather information about applicants in a number of ways:
Résumés
Applications
Interviews
Tests
Medical examinations
Background and other checks

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Figure 6.2:
Steps in the Selection Process

Section 6.1b: Steps in the Selection Process
The steps that typically make up the selection process are shown in Figure 6.2. Not all applicants will go through all of these steps. Some will be rejected after the preliminary interview, others after taking tests, and so on.
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6.1c Obtaining Reliable
and Valid Information
Reliability – The degree to which an interview, test, or other selection procedures result in consistent information about a candidate
Reliability also refers to the extent to which two or more methods (e.g., interviews and tests) yield similar results or are consistent with one another.
Validity – The degree to which a test or selection procedure actually measures or predicts a person’s ability to do a job

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6.2 Initial Screening
Before you interview applicants for a job, you first want to screen out people who aren’t qualified for the job in to save time and money.

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6.2a Initial Screening Methods
Cover letters and résumés
Internet checks
Phone and video screening
Video résumés – Short video clips that highlight applicants’ qualifications beyond what they can communicate on their résumés
Application forms

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Figure 6.3: Application/Résumé Assessment Grid

Section 6.2a: Initial Screening Methods
Developing clear evaluation criteria and a structured way to review résumés can help make the process less subjective. Using an assessment grid like the one shown in Figure 6.3 can take some of the guesswork out of the process. Job description criteria are placed in the left-hand column of the grid, and candidates are than ranked based on a scale as to whether the skills outlined in their résumés and cover letters match the job. The totals for the candidates are then compared.
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6.3 Employment Interviews
Even though they are plagued by subjectivity and have shown to be poor predictors of performance, employment interviews are almost always utilized in the selection process.
Firms continue to use interviews because:
They are practical when there are only a small number of applicants.
They serve other purposes, such as public relations.
Interviewers trust their judgments when it comes to making decisions about which candidates to choose.

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Figure 6.4: Variables in the Employment Interview

Section 6.3: Employment Interviews
As Figure 6.4 shows, situational factors and candidate characteristics, such as a person’s race and sex, can affect the perceptions of an interviewer and ultimately the interview’s outcome.
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6.3a Types of Interviews
Nondirective interview – An interview in which the applicant is allowed the maximum amount of freedom in determining the course of the discussion, while the interviewer carefully refrains from influencing the applicant’s remarks
Structured interview – An interview in which a set of standardized questions having an established set of answers is used
Situational interview – An interview in which an applicant is given a hypothetical incident and asked how he or she would respond to it
Behavioral description interview (BDI) – An interview in which an applicant is asked questions about what he or she actually did in a given situation
Sequential interview – A format in which a candidate is interviewed by multiple people, one right after another
Panel interview – An interview in which a board of interviewers questions and observes a single candidate

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6.3b Methods for
Administering Interviews
Video and Phone Interviews
Video interviews – Interviews conducted via videoconferencing or over the Web
Video and phone interviews make it easier to interview people in different geographic areas, thereby expanding the talent pool.

Computer-Administered (Automated) Interviews
Computer-administered (automated) interview – Interviews in which the questions are administered to applicants via computers. The interviews can be conducted at a firm’s facilities, using kiosks, online, or via phone
Drawback:
Recruiters and managers can’t immediately ask candidates follow-up questions based on their answers.

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6.3c Diversity Management: Could Your Questions Get You into Legal Trouble?
The Equal Employment Opportunity Commission (EEOC) discourages direct or indirect questions related to:
Race
Color
Age
Religion
Sex
Sexual orientation
National origin
Caregiver status
In general, if a question is job related, is asked of everyone, and does not discriminate against a certain class of applicants, it is likely to be acceptable.

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6.4 Post-Interview Screening
After a candidate has been interviewed and appears to be a good potential new hire, information about the person’s previous employment as well as other information provided by the applicant is investigated.

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6.4a Reference Checks
Organizations check the references of employees in a number of ways.
Phone checks
Former employers
Prior to checking a candidate’s references, the candidate must complete forms permitting information to be solicited from former employers and other reference sources.

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6.4b Background Checks
Negligent hiring – The failure of an organization to discover, via due diligence, that an employee it hired had the propensity to do harm to others
To run background checks, firms must obtain clear and conspicuous written consent from applicants beforehand.
Applicants must also be told if the information uncovered is going to be used to deny their employment; they must be given a copy of the report(s), the right to dispute it (them), and time to do so.

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Video Highlight #1
Massachusetts officials say more than 10 percent of people who applied to drive for ride-hailing companies Uber and Lyft failed a required background check, though the company and some drivers call the process unfair. This news report by WBZ-TV examines the issue.

“Thousands Fail Uber Background Check That Some Call Unfair
”

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Section 6.4: Background Checks
VIDEO: Thousands Fail Uber Background Check That Some Call Unfair (2:23)
Massachusetts officials say more than 10 percent of people who applied to drive for ride-hailing companies Uber and Lyft failed a required background check, though the company and some drivers call the process unfair. This news report by WBZ-TV examines the issue.

TOPICS/CONCEPTS: background checks, post-interview screening, employment screening, hiring

6.5 Preemployment Tests
Preemployment test – An objective and standardized test used to gauge a person’s knowledge, skills, abilities, and other characteristics (KSAOs) relative to other individuals
Drawback:
They create the potential for legal challenges by applicants claiming the tests they took were discriminatory.

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6.5a Types of Tests (slide 1 of 3)
Job Knowledge Tests
Job knowledge tests are achievement tests designed to measure people’s level of understanding, or knowledge, about a particular job.

Work Sample Tests
Work sample tests, or job sample tests, require the applicant to perform tasks that are part of the work required on the job.

Assessment Center Tests
Assessment center test – A process by which managerial candidates are evaluated at an assessment center as they participate in a series of situations that resemble what they might need to handle on the job

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6.5a Types of Tests (slide 2 of 3)
Cognitive Ability Tests
Cognitive ability tests measure mental capabilities such as general intelligence, verbal fluency, numerical ability, and reasoning ability.

Biographical Data (Biodata) Tests
Biological data tests (biodata tests) collect biographical information about candidates who have shown to correlate with on-the-job success.

Personality and Interest Inventories
Personality tests have been found to be good predictors of applicants’ motivation, such as their leadership efforts and propensity to adhere to rules.

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Figure 6.5: Examples of Questions
on a Cognitive Ability Test

Section 6.5a: Types of Tests
Figure 6.5 shows some items that could be used to measure different cognitive abilities.
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6.5a Types of Tests (slide 3 of 3)
Physical Ability Tests
For some jobs, such as firefighters and police officers, employers need to assess a person’s physical abilities.

Medical Examinations
The law prohibits a medical examination being administered to an applicant before he or she has been made a conditional employment offer and agreed to undergo it.

Drug Tests
Different states have different laws regarding drug testing.
A candidate can refuse to take a drug test, but that is tantamount to turning down the job.
There are mixed results regarding the effectiveness of drug testing.

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Discussion Starter #2
What characteristics do job knowledge and job sample tests have that often make them more acceptable to candidates than other types of tests?

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ANSWER: Job knowledge tests and job sample tests are often more acceptable to examinees because they appear to be job related. Job knowledge tests are achievement tests designed to measure people’s level of understanding, or knowledge, about a particular job. Work sample tests, or job sample tests, require the applicant to perform tasks that are actually a part of the work required on the job. Therefore, when both of these tests are constructed from a carefully developed outline that experts agree includes the major job functions, the tests are considered effective, reliable, valid, and fair.

Video Highlight #2
This video shows what a physical ability test is like for the Newport Beach Police Department.

“Physical Ability Test
”

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Section 6.5: Preemployment Tests
VIDEO: Physical Ability Test (6:29)
This video shows what a physical ability test is like for the Newport Beach Police Department.

TOPICS/CONCEPTS: preemployment tests, physical ability tests

Activity
Step 1: Submit a report on preemployment tests you would use in a company of your choice (such as investment, consulting, banking, contracting, etc.).
The report should emphasize the rationale behind the use of those tests and also state their advantages and disadvantages.
Step 2: Share your report to discuss the suitability of the tests.

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Estimated class time: 30 minutes

6.5b Determining the Validity of Tests (slide 1 of 2)
Criterion-Related Validity
Criterion-related validity – The extent to which a selection tool predicts, or significantly correlates with, important work behaviors
There are two types of criterion-related validity:
Concurrent validity – The extent to which the test scores of current employees correlate with their job performance
Predictive validity – The extent to which candidates’ test scores match criterion data obtained from them after they have been hired and on the job for a period of time
Regardless of the method used, cross-validation is essential.
Cross-validation – Verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population)

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Figure 6.6: Correlation Scatterplots

Section 6.5b: Determining the Validity of Tests
Correlation methods are generally used to determine the relationship between predictor information such as test scores and criterion data. The correlation scatterplots in Figure 6.6 illustrate the difference between a selection test with zero validity (A) and one with high validity (B). Each dot represents a person.

Note that in scatterplot A, there is no relationship between test scores and success on the job; in other words, the validity is zero. In scatterplot B, those who score low on the test tend to have low success on the job, whereas those who score high on the test tend to have high success on the job, indicating high validity. In actual practice, we would apply a statistical formula to the data to obtain a coefficient of correlation referred to as a validity coefficient. Correlation coefficients range from 0.00, denoting a complete absence of relationship, to +1.00 and to –1.00, indicating a perfect positive and perfect negative relationship, respectively.
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Discussion Starter #3
What is meant by the term criterion as it is used in personnel selection?
Give some examples of criteria used for jobs with which you are familiar.

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ANSWER: The term criterion refers to measures of job performance such as production records, supervisor’s ratings, training outcomes, and other measures of on-the-job success.

Students may give several examples of criteria. It is important that they understand that criterion, used in this context, refers to a measure of job success and not to the various types of predictor information (education, job experience, and so on).

6.5b Determining the Validity of Tests (slide 2 of 2)
Content Validity
Content validity – The extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to do a particular job
Content validity is the most direct and least complicated type of validity to assess.

Construct Validity
Construct validity – The extent to which a selection tool measures a theoretical construct or trait
Typical constructs are intelligence, mechanical comprehension, and anxiety.

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6.6 Reaching a Selection Decision
There are various approaches you can use to weigh all of the information about the candidates so as to make a final decision.

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6.6a Summarizing Information
about Applicants
Summary forms and checklists can be used to ensure that all of the pertinent information about applicants has been included.
Evaluating candidates on the basis of information you have assembled should focus on what the applicant can do and will do.

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Figure 6.7:
Candidate Evaluation Form

Section 6.6a: Summarizing Information about Applicants
Figure 6.7 shows an example of a candidate evaluation form. Summary forms and checklists such as the one shown in Figure 6.7 can be used to ensure that all of the pertinent information about applicants has been included.
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Figure 6.8: “Can-Do” and “Will-Do” Factors in Selection Decisions

Section 6.6a: Summarizing Information about Applicants
Fundamentally, an employer is interested in what an applicant can do and will do. Evaluating candidates on the basis of information you have assembled should focus on these two factors, as Figure 6.8 shows. The “can-do” factors include a candidate’s knowledge and skills, as well as the aptitude (potential) for acquiring new knowledge and skills. The “will-do” factors include the candidate’s motivation, interests, and other personality characteristics. Both factors are essential to successful performance on the job.
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6.6b Decision-Making Strategy
(slide 1 of 2)
The strategy used to make personnel decisions for one type of job will differ from those used to make decisions for other types of job.
The following are some of the questions firms must consider when deciding on whom to hire:
Should the individuals be hired according to their highest potential or according to the needs of the organization?
At what grade or wage level should the individual be hired?
Should the selection be based on finding an ideal employee to match the job currently open, or should a candidate’s potential for advancement in the organization be considered?
Should individuals who are not qualified but trainable be considered?
Should overqualified individuals be considered?
What effect will the decision have on the firm’s affirmative action plans and diversity goals?

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6.6b Decision-Making Strategy
(slide 2 of 2)
Clinical Approach
Using the clinical approach, those making the selection decision review all the data on the applicants and then, on the basis of their understanding of the job and the individuals who have been successful in that job, make a decision.

Statistical Approach
The statistical approach involves identifying the most valid predictors and weighting them using statistical methods.
Compensatory model – A selection decision model in which a high score in one area can make up for a low score in another area
Multiple cutoff model – A selection decision model that requires an applicant to achieve some minimum level of proficiency on all selection dimensions
Multiple hurdle model – A selection decision model in which only the applicants with the highest scores at an initial test stage go on to subsequent stages

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Figure 6.9: Test Scores Scatterplot with Hypothetical Cutoffs

Section 6.6b: Decision-Making Strategy
The effects of raising and lowering the cutoff score are illustrated in Figure 6.9. Each dot in the center of the figure represents the relationship between the test score (or a weighted combination of test scores) and the criterion of success for one individual. The elliptical pattern of the dots indicates the test has a fairly high validity. Note that the high-scoring individuals are concentrated in the satisfactory job success category, whereas the low-scoring individuals are concentrated in the unsatisfactory category.

If the cutoff score is set at A, only the individuals represented by areas 1 and 2 will be accepted. Nearly all of them will be successful. If more employees are needed, the cutoff score can be lowered to point B. In this case, a larger number of potential failures will be accepted, as shown in quadrants 2 and 4. Even if the cutoff is lowered to C, the total number of satisfactory individuals selected (represented by the dots in areas 1, 3, and 5) exceeds the total number selected who are unsatisfactory (areas 2, 4, and 6). Thus, the test serves to maximize the selection of probable successes and to minimize the selection of probable failures.
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6.6c Final Decision
In large organizations, managers or supervisors usually make the final decision about whom to hire, and communicate it to the human resources (HR) department, who then notify the candidate about the decision and make a job offer.
The HR department should confirm the details of the job, working arrangements, hours, wages, and so on and specify a deadline by which the applicant must reach a decision.
For internal candidates, generally, the hiring manager contacts the candidates personally and informs them of the decision.
For both external and internal candidates, it is important to put the offer in writing so there is no ambiguity or dispute about its terms.
Organizations should not fail to notify candidates who are not chosen for the position.

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