Human Resource Management

Arab World Edition

Gary Dessler & Akram Al Ariss

Instructor’s Manual

Adapted by Dr. Victor Sohmen

Drexel University

Philadelphia, Pennsylvania, USA.

With

Translating Strategy Into HR Policies and Practices: The KAMCO Case

model answers provided by Dmytro Roman Kulchitsky, Ph.D. and Mr.
Ramsey Awwad
American University of Kuwait
 This part in your main source
“textbook’’ from page 130 to page 154.
PART TWO RECRUITMENT AND PLACEMENT

C H A P T E R T S i x

Employee Testing 6
And
Selection

Lecture Outline
Strategic Overview
Why Careful Selection is Important
Basic Testing Concepts
Reliability
Validity
How to Validate a Test
Computerized and Online Testing In Brief: This chapter explains how to use
Types of Tests various tools and techniques to select the
Tests of Cognitive Abilities best candidates for the job. It gives an
Tests of Motor and Physical Abilities overview of the selection process, basic
Measuring Personality and Interests testing techniques, background and
Achievement Tests reference checks, ethical questions in
Work Samples and Simulations testing, types of test, and work samples
Work Sampling for Employee Selection and simulations. It also addresses ethical
Management Assessment Centers questions surrounding the area of testing
The Miniature Job Training and Evaluation and selection.
Approach
Realistic Job Previews
Summary Interesting Issues: Reference checking
Background Investigations and Other Selection is part of the care an employer must take
Methods to ensure that the potential employee will
Background Investigations and Reference not pose a threat to current employees or
Checks customers. Employers who fail to exercise
“due diligence” in checking a job
Honesty Testing
candidate’s background may find
Graphology
themselves legally liable if the candidate
Physical Exams
is hired and subsequently uses the job to
Improving Productivity Through HRIS: commit a crime.
Comprehensive Automated Applicant
Tracking &
Screening Systems
LEARNING OBJECTIVES

1. Cite the main features of diversity in the context of work

2. Discuss the context of diversity in the Arab countries
3. Explain and illustrate the case of diversity in one Arab country: Lebanon
4. Avoid employment discrimination problems

ANNOTATED OUTLINE

I. Why Careful Selection Is Important

Selecting the right employees is important for three main reasons.

1. Performance – Employees with the right skills and attributes will perform
more effectively.

2. Costs – The cost of making a wrong hire can become exorbitant

considering the time and money invested in the selection and training
process.

3. Legal Obligations – The legal implications of incompetent or negligent

hiring.

II. Basic Testing Concepts

A. Reliability – The consistency of scores obtained by the same

person when retested with the identical or equivalent tests.

B. Validity – Evidence that performance on a test is a valid predictor

of subsequent performance on the job.

1. Test validity – Answers the question, “Does this test

measure what it is supposed to measure?”

2. Criterion validity – Scores on the test (predictors) are

related to job performance.

3. Content validity – The test contains a fair sample of the

tasks and skills actually needed for the job in question.

Teaching Tip: The difference between reliability and validity is

sometimes difficult for students to understand. Explain that if 100
accident-prone, careless applicants took the same test and scored
well on it, the test would be reliable because the results are
consistent. However, if the purpose of the test was to identify safety
conscious applicants, it would not be valid as a test because it does
not predict good safety performance on the job, the very thing it was
intended to measure.

C. How to Validate a Test

 1. Analyze the Job – Write job descriptions and job
specifications.

2. Choose the Test (s) – Choose tests that measure the

attributes (predictors) important for job success.

3. Administer the Test (s) – Administred to selected old or

new employees for concurrent and predictive validation.

4. Relate Your Test Scores and Criteria – Done through a

correlation analysis, which shows the degree of
statistical relationship between scores on the test and
job performance.

5. Cross-validate and Revalidate – Perform steps 3 and 4

on a new sample of employees. Testing Guidelines: 1)
use tests as supplements; 2) validate the tests; 3)
analyze all your current hiring and promotion standards;
4) keep accurate records; 5) begin your validation
program now; 6) use a certified psychologist; and 7) test
conditions are important.

D. Content validation – Emphasizes judgment of a comprehensive

sample of actual, observable, and on-the-job behaviors.

E. Research insight: Face validity – There should be an obvious link

between the test and job performance—which in turn promotes
fairness in selection.

The New Workforce: Gender Issues in Testing. Employers using

selection testing should realize that test results may be distorted by
gender. Saudi Aramco is working to develop men and women who are
versatile and flexible, and who have both technical knowledge and solid
people skills. This pattern of encouraging women to work in Arab
countries has been increasing in recent years in the Arab region.
However, males tend to score higher on aptitude tests in what some view
as male fields (such as mechanical reasoning). The test results may thus
ironically maintain the narrowing of women’s career options in the Arab
world.

F. Computerized and Online Testing – Increasingly replacing paper-and- pencil

and manual tests.

 NOTES Educational Materials to Use

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 - Tests of general intellectual abilities

ranging from memory, vocabulary, verbal fluency to
numerical ability.

2. Specific Cognitive Abilities (Aptitude) – 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. (See Figure 6-6.)

1. What Personality Tests Measure – Tests measure basic

aspects of an applicant’s personality, such as
introversion, stability, and motivation.

2. The "Big Five" – Industrial psychologists emphasize five

personality dimensions as they apply to personnel
testing: extroversion, emotional stability/neuroticism,
agreeableness, conscientiousness, and openness to
experience.

3. Caveats – Personality tests are the most difficult tsts to

evaluate and use. An expert must analyze the
candidate’s interpretations and reactions and infer from
them his or her personality.

4. Effectiveness – Personality tests can help employers

improve screening, and employers are making increased
use of personality testing.

5. Interest Inventories – Compare one’s interests with

those of people in various occupations.

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

 NOTES Educational Materials to Use

IV. Work Samples and Simulations

With work samples, you present applicants with situations representative of the job for
which they’re applying, and evaluate their responses

A. Work Sampling for Employee Selection – 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.

1. Basic 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

Provide simulations in which candidates perform realistic

management tasks, under the observation of experts who
appraise each candidate’s potential. Simulated exercises include
in-basket, leaderless group discussion, management games,
individual presentations, objective tests, and interviews.

1. Effectiveness – Most experts view assessment centers as

effective for selecting and promoting management
candidates, despite the extra cost to develop the centers.

C. The Miniature Job Training and Evaluation – Training candidates to perform

a sample of job tasks, and evaluating their performance.

1. Honda Example – Honda sought applicants for a free training

program Honda was offering as a precondition for applying for jobs at
the new plant. Training sessions enabled special assessors from the
Alabama state agency to scrutinize the trainees’ work and to rate
them.

2. Arab Car Manufacturing – How would this work in the Arab world?

3. Pros and Cons – Expensive instruction and training.

D. Realistic Job Previews – Being explicit about work schedules,

preferences and other job standards at the point of interview can
help reduce turnover later.

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
administer.

E. Summary – Table 6-2 summarizes the validity, cost, and

potential adverse impact of several popular assessment methods
for evaluating job candidates.
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. In the Arab
region, companies rarely do background checks.

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.
Employers often check social networking site postings
online.

3. Effectiveness – Reference letters are not viewed as very

useful. Fewer than half of HR managers state that they were
able to obtain adequate information about candidates.

4. Making Background Checks More Useful – Include on the

application form a statement for applicants to sign explicitly
authorizing a background check, use telephone references,
additional.references, and open-ended questions.

B. Honesty Testing – These are psychological tests designed to predict

job applicants’ proneness to dishonesty and other forms of counter-
productivity.

1. Honesty Testing Programs: What Employers Can Do –

Anti-theft screening procedures are adopted such as
asking blunt questions, search-and-siezure, test for drugs,
listening, and checking all employment and personal
references.

C. Graphology (handwriting analysis) – This assumes that

handwriting reflects basic personality tests.

D. Physical Exams – Once an offer is made and the person is hired,

a medical exam is usually the next step in the selection process.

 NOTES Educational Materials to Use

E. Improving Productivity Through HRIS: Comprehensive Automated Applicant

Tracking and Screening Systems – These systems are an example of
technology use in HR. These systems help companies screen applicants in
three ways:
 1. Applicants who do not meet minimum, non-negotiable job requirements.

2. Test and screen applicants online including web-based skills testing,

cognitive skills testing, and psychological testing.

3. Discover ‘hidden talents’ by identifying talents in the candidate pool that

lend themselves to job matches at the company that the applicant didn't
know existed when he applied. Minimum functionality requirements of
ATS are discussed here. Box 6-3 tells what to look for in an ATS system.

 NOTES Educational Materials to Use

DISCUSSION QUESTIONS

1. What is the difference between reliability and validity? In what respects are
they similar? Reliability is the consistency of scores obtained by the same persons
when retested with identical tests or with an equivalent form of a test. It is a measure
of internal consistency of the instrument. Validity is the degree to which a test
measures what it is purported to measure. It is a measure of external consistency.
They are similar in that both are concerned with aspects of consistency of the
instrument, and that reliability is a necessary condition for validity.

2. Explain how you would go about validating a test. How can this information be
useful to a manager? The validation process consists of five steps: job analysis,
selecting a test, administering a test, relating the test scores and the criteria, and
cross validation/ revalidation. Using valid selection devices will enable the manager
to develop objective information in the selection process and should result in more
effective selection decisions.

3. Explain why you think a certified psychologist who is specially trained in test
construction should (or should not) always be used by a small business that
needs a test battery. Due to the complex and legal nature of this activity, the use of
a certified psychologist may be the only safe way to accomplish your objectives.
However, because of the high salary and limited job scope of such a specialist, a
definite drawback to this approach is the cost involved. Perhaps more "direct" tests
can be developed which require less sophistication: motor and physical abilities tests
(some agencies provide this service), on-job knowledge tests, and work sampling.
This chapter also presents some alternative testing tools that are relatively easy to
administer and low in cost that are reasonable choices for small employers to use.

4. Give some examples of how to use interest inventories to improve employee

selection. In doing so, suggest several examples of occupational interests that
you believe might predict success in various occupations, including college
professor, accountant, and computer programmer. Interest inventories can
improve employee selection by identifying individuals with similar interests to those
reported by a substantial percentage of successful incumbents in an occupation.
This should clearly increase the likelihood that the applicants will be successful in
their new jobs. Interests that one might expect: accountant: math, reading, music;
 college professor: public speaking, teaching, counseling; computer programmer:
math, music, computers.

5. Why is it important to conduct pre-employment background investigations?

Outline how you would go about doing so. Past behavior is the best predictor of
future behavior. It is important to gain as much information as possible about past
behavior to understand what kinds of behavior one can expect in the future.
Knowledge about attendance problems, insubordination issues, theft, or other
behavioral problems can certainly help one avoid hiring someone who is likely to
repeat those behaviors. The section on background investigations and reference
checks has some excellent guidelines for background checks.

6. Explain how you would get around the problem of former employers being
unwilling to give bad references on their former employees. Since many
companies have strict policies regarding the release of information about former
employees, it may not be possible to get information at all, good or bad. However,
conducting a thorough reference audit by contacting at least two superiors, two
peers, and two subordinates will help increase the chance that you will find someone
who is willing to give you the information you need. Also, making the contacts by
phone rather than in writing will increase their belief that the information may not be
traced back to them. The situation in most Arab countries, however, is very different.
For instance, in the U.A.E., companies rarely do background verification when
selecting candidates based on skills. One reason is that most working people in the
U.A.E. are expatriates,making it difficult to get information from their countries of
origin regarding their background and employment history.

7. How can employers protect themselves against negligent hiring claims? There
is a list of ways employers can protect themselves against negligent hiring claims
discussed in the section on why careful selection is important at the beginning of the
chapter.

INDIVIDUAL AND GROUP ACTIVITIES

1. Write a short essay discussing some of the ethical considerations in testing.

The employer must be able to demonstrate that tests are related to success or failure
on the job and that they are not having an adverse impact on members of a protected
group. Test takers also have certain basic rights to privacy and information. The test
taker also has the right to expect that the test is equally fair to all test takers. Any
display of bias in the availability, format, or administration of testing would be deemed
unethical.

2. Working individually or in groups, develop a list of specific selection

techniques that you would suggest your dean use to hire the next HR
professor at your school. Explain why you chose each selection technique.
The students should use the selection information presented in the chapter to list
their selection techniques of choice with their supporting rationale. They could also
review online ads such as those found on www.Bayt.com to see the selection criteria
posted by various academic institutions.

3. Working individually or in groups, contact a publisher of a standardized test

and obtain from it written information regarding the test's validity and
reliability. Present a short report in class discussing what the test is supposed
to measure and the degree to which you think the test does what it is supposed
to do, based on the reported validity and reliability scores. Encourage students
to contact different sources; it may be a good idea to have a sign-up sheet so that no
 two students or groups are gathering information on the same instruments. Students
should be able to clearly relate validity and reliability scores to effectiveness.

EXPERIENTIAL EXERCISE

A Test for a Reservation Clerk

Purpose: The purpose of this exercise is to give you practice in developing a test to
measure one specific ability for the job of airline reservation clerk for a major airline. If
time permits, you’ll be able to combine your tests into a test battery.

Required Understanding: Your airline has decided to outsource its reservation jobs to
Europe. You should be fully acquainted with the procedure for developing a personnel
test and should read the following description of an airline reservation clerk’s duties:

Customers contact our airline reservation clerks to obtain flight schedules, prices, and
itineraries. The reservation clerks look up the requested information on our airline’s online
flight schedule systems, which are updated continuously. The reservation clerk must
speak clearly, deal courteously with the customer, and be able to quickly find alternative
flight arrangements in order to provide the customer with the itinerary that fits his or her
needs. Alternative flights and prices must be found quickly, so that the customer is not
kept waiting, and so that our reservations operations group maintains its efficiency
standards. It is often necessary to look under various routings, since there may be a
dozen or more alternative routes between the customer’s starting point and destination.
You may assume that we will hire about one-third of the applicants as airline reservation
clerks. Therefore, your objective is to create a test that is useful in selecting a third of
those available.

How to Set Up the Exercise/Instructions: Divide the class into teams of five or six
students. The ideal candidate will obviously have to have a number of skills and abilities
to perform this job well. Your job is to select a single ability and to develop a test to
measure that ability. Use only the materials available in the room, please. The test should
permit quantitative scoring and may be an individual or a group test.

Please go to your assigned groups and, as per our discussion of test development in this
chapter, each group should make a list of the abilities relevant to success in the airline
reservation clerk’s job. Each group should then rate the importance of these abilities on a
five-point scale. Then, develop a test to measure what you believe to be the top-ranked
ability. If time permits, the groups should combine the various tests from each group into
a test battery. If possible, leave time for a group of students to take the test battery.

APPLICATION CASE

1. What should this position’s job description look like? Students should list the
types of activities, responsibilities, and qualifications that they believe should be
included for the position of executive manager.

2. What are the ideal job specifications for the person in this position? Students
should list (and be ready to defend) the specifications that they believe would be
needed for the position.

3. How should Al Baraka Banking Group go about recruiting and screening for
this position? What selection tools, specifically, would you use? Many tools
 could be included, such as background checks, interviews, and a thorough review of
academic and experiential qualifications.

CONTINUING CASE

1. What would be the advantages and disadvantages to their company of

routinely administering honesty tests to all employees? Polygraph testing raises
a large number of legal and moral issues; issues Al Nazafa would best avoid. Use of
some of the available “paper and pencil” honesty tests may be a possibility. In
general, these have been shown to be reasonably reliable and valid. They are still
controversial. The costs associated with these tests may also make them prohibitive
to a small operation like Al Nazafa.

2. Specifically, what other screening techniques could the company use to screen
out theft-prone and turnover-prone employees, and how exactly could these be
used in their case as their job candidates are mostly based abroad before
coming to Lebanon? More thorough background checks are a recommended
technique to eliminate potential thieves. Some firms choose to contract this out to a
private security agency (Cost may be an issue). However, the company can quickly
check to see if savings from reduced theft would offset the cost of an outside agency.
As part of the job preview, Al Nazafa must communicate that dishonesty and theft will
not be tolerated. Further company policies regarding theft should be clearly
communicated to new and existing employees. The fact that the job candidates are
hired from countries outside of Lebanon means that the policies on theft and fairness
in treatment should be applied uniformly for all employees as part of the
organizational culture, irrespective of national origin of the employees.

3. How should her company terminate employees caught stealing, and what kind
of procedure should be set up for handling reference calls about these
employees when they go to other companies looking for jobs? Terminating
employees for theft should include the involvement of proper authorities and should
only be done when there is absolute proof of the theft and who committed it. Such an
action will also send a message to the other employees that theft of company
resources will not be tolerated. While many employers are reluctant to prosecute
employees for theft, developing evidence with police and through the courts can be
beneficial in providing future employers of the individual with truthful and factual
information.

TRANSLATING STRATEGY INTO HR POLICIES AND

PRACTICE: THE KAMCO CASE

In teams or individually, review the job description of an IT Help Desk Officer

below; and answer the following questions:

1. Provide a detailed example of a sample test for the job title, IT Help Desk Officer.
KAMCO’s job description for IT Help Desk managers identifies and describes nine
accountabilities, namely IT strategy, Needs Identification, Customer Support, Records,
Direction of Subordinates, Instruction Manuals and guides, People Development.
Budgeting and Cost Control, and Policies and Procedures. It also lists an IT University
Degree, 4 years of related experience, English language, knowledge of policies and
procedures, time management, PC, performance management, IT applications and IT
business analysis as necessary qualifications, experience, and skills for the IT Help Desk
position. Finally, the IT Help Desk job description enumerates the following competencies
for the position: Developing Others, Empowerment and Delegation, Organizational
Alignment and Change Management, Customer Service Orientation, and Teamwork and
Cooperation.

According to Chapter 6 employers typically test applicants for basic (such as reading,
writing, and arithmetic) and job skills. In some cases employers administer personality
tests to measure aspects of the applicant’s personality (such as introversion, stability,
and motivation). It seems to make sense that any test for the job title, IT Help should
focus on the applicant’s ability to read instructions and write reports in English, as well as
determine the applicants ability to provide technical support.

The following website provides excellent examples of reading and writing skills questions:

English (ESL) Learning: http://www.usingenglish.com/comprehension/

This webpage lists different reading, writing, and usage test of English, ranging from
beginner to advanced. This site also includes tests specifically designed for everyday
written and spoken communication, as well as for the context of business.

The following websites provide useful examples of basic technical skills questions:

 Whatis.com: Help Desk Quiz

http://whatis.techtarget.com/definition/0,,sid9_gci547149,00.html

 Proprofs Quizmaker: Computer Help Desk / Technical Support Test

http://www.proprofs.com/quiz-school/story.php?title=computer-help-desk-
technical-support-test

2. Provide a detailed example of two personality test questions for the IT Help Desk
Officer position. Since the position of IT Help Desk Officer requires communication skills
and customer-service orientation, personality questions that measure the applicant’s
ability to adapt to different people and different demands, as well as to deal with highly
stressful interactions are also very important.

One of the more popular websites that offers examples of personality questions that
measure a candidate’s proclivity for team building and leadership is HumanMetrics.com:
http://www.humanmetrics.com/cgi-win/jtypes2.asp

This site lists 72 questions based on the Jung Typology test and can be used to identity
traits for team building and leadership. Two examples include:

 Question #10: It is your nature to assume responsibility – yes/no

 Question #19: Your actions are frequently influenced by emotions – yes/no

A more comprehensive site that offers samples of personality tests is

www.psychtests.com . For example, following personality tests can be found on this site:

 Big Five Personality Test

 Motivation and Needs Test
 Personality traits test
 Extroversion/Introversion Test
  Sensitivity to Criticism Test

3. What other tests would you suggest to KAMCO’s HR director for the IT Help
Desk Officer? Chapter 6 identifies eleven (11) evaluation and assessment methods for
employee testing and selection (see Table 6-1 on page 137). Based on the key
accountabilities listed in the job Description for an IT Help Desk Officer at KAMCO; and
the corresponding competencies (see Figure 6-2 on page 146), it seems to make sense
that the HR department should also administer an aptitude test. This test would help the
HR department predict the candidate’s ability to learn new technical knowledge quickly.

Two other tests that could be used for employee selection are: work sampling and
situational testing. The work sampling technique would allow the HR department to
predict job performance in the area of budgeting and cost control, as well as preparing
instructional manuals and guidelines for the IT Help Desk processes at KAMCO.
Situational testing, on the other hand, could be employed to assess the applicant’s ability
to: 1) remain professional in stressful situations; and 2) analyze problems and selecting
the best solution given limited time and resources.

The website www.psychtests.com offers samples of intelligence and aptitude tests. They
include:

 Emotional IQ Test
 Culture Fair Test
 Analytical Reasoning Test
 Management Skills and Style Assessment Test
 IT Job Assessment Test

Another site that identifies customer service oriented questions is

http://www.queendom.com/tests/access_page/index.htm?idRegTest=3084 . This site
consists of two types of questions, namely scenarios and questions using the following
scale: “Most of the Time,” “Often,” “Sometimes,” “Rarely,” and “Almost Never.” Similar
questions related to customer service can also be found on www.pscyhtests.com in the
test entitled “Customer Service Test.”

KEY TERMS

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.

criterion validity A type of validity based on showing that scores on the

test (predictors) are related to job performance.

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.
management assessment
center A situation in which management candidates are asked
to make decisions in hypothetical situations and are
scored on their performance. It usually also involves
testing and the use of management games.

miniature job training and Training candidates to perform several of the job’s tasks,
and evaluation then evaluating candidates’ performance prior to hire.

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.

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

work sampling technique A testing method based on measuring performance on

actual job tasks.