HR Management

HUMAN RESOURCE MANAGEMENT
(HRM)
Employee Testing
and Selection
2 ND Y E A R
COMPLIED AND EDITED BY :
DR .MAHA MISBAH
ENGLISH PROGRAM
DATE :22/4/2020
Learning Objectives
6-1. Answer the question: Why is it
important to test and select employees?
6-2. Explain what is meant by reliability and
validity.
6-3. List and briefly describe the basic
categories of selection tests, with
examples.
Copyright © 2017 Pearson

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Learning Objectives
6-4. Explain how to use two work

simulations for selection.
6-5. Describe four ways to improve an
employer’s background checking
process.
6-3
I.
Answer the question:
Why is it important to
test and select
employees?

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Introduction
• Once you review your applicants (CV), the next step is

selecting the best candidates for the job.
• This usually means shaping the applicant pool by using
the screening tools we cover in this chapter: tests,
assessment centers, and background and reference
checks.
• Then the supervisor can interview likely candidates and
decide whom to hire.
• Nothing you do at work is more important than
hiring the right employees.
6-5
Why Careful Selection Is Important
The Importance of Selecting

the Right Employees
Organizational Legal obligations

Costs of recruiting
performance and liability
and hiring
6-6
Why Careful Selection Is Important
• It is important for three main reasons:

1. Performance
2. Costs
3. Legal Obligations.
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1. Performance
• First, your own performance always depends on

your subordinates. Employees with the right skills
will do a better job for you and the company.
• The time to screen out undesirables is before they

are in the door, not after.
6-8
2. Costs
• Second, it is important because its costly to recruit and

hire employees.
• Hiring and training even a clerk can cost $5,000 or

more in fees and supervisory time.
• The total cost of hiring a manager could easily be 10

times as high once you add search fees, interviewing
time, reference checking, and travel and moving
expenses.
6-9
3. Legal Obligations
• Third, its important because mismanaging hiring
has legal consequences.
• For one thing, equal employment laws require

nondiscriminatory selection procedures. Furthermore,
someone can charge an employer for negligent
hiring.
• Negligent Hiring: Hiring workers with questionable

backgrounds without proper safeguards.
 Negligent hiring means hiring employees with
criminal records or other problems who then use
access to customers homes (or similar opportunities)
to commit crimes. 6-10
In one case, Ponticas v. K.M.S. Investments,
an apartment manager with a passkey
entered a woman s apartment and
assaulted her.
The court found the apartment complex s
owner negligent for not checking the
manager s background properly
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Person and Job/Organization Fit
• The main aim of employee selection is to achieve

person-job fit.
• Person-job fit refers to matching:

1. The knowledge, skills, abilities (KSAs),and
competencies that are central to performing the job
(as determined by job analysis) with
2. The prospective employees knowledge, skills,
abilities, and competencies. The aim is to achieve a
match.
6-12
Person-organization Fit
• However, a candidate might be right for a job, but wrong

for the organization.
• Thus, while person-job fit is usually the main

consideration in selection, employers should care about
person-organization fit as well.
• For example, a highly experienced airline pilot might do

well at American Airlines but perhaps not as well at
Southwest, where the organizational values require that
all employees help get the plane turned around fast, even
if that means helping with baggage handling.
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II.
Explain what is meant by
reliability and validity.

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The Basic of Testing and Selecting
Employees
• A test is one popular selection tool.
• A test is basically a sample of a persons behavior.
• Using a test (or any selection tool) assumes the tool is

both reliable and valid.

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Basic Testing
Concepts
Reliability validity

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The Basic of Testing and
Selecting Employees
1. Reliability
2. Validity
A. Criterion validity
B. Content validity
C. Construct validity

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1. Test Reliability
• Reliability is a tests first requirement and refers to its
consistency.
• Reliability is the consistency of scores obtained by the
same person when retested with the identical tests or
with alternate forms of the same test.
• So therefore, “A reliable test is one that yields
consistent scores when a person takes two alternate
forms of the test or when he or she takes the same
test on two or more different occasions”. 6-18
How to measure Reliability
• Retest Estimate
Same test to same people at different point in time
• Equivalent form estimate
Administer a test and administer what believes to
be an equivalent test.
• Internal comparison estimate
Administer a test & statistically analyze the degree
to which responses of items vary. Seemingly
repetitive questions on some questionnaire to
check internal consistency.
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How to measure Reliability
• You can measure reliability in several ways:

1. Test-retest reliability estimate: administer a test to a
group of people one day, readminister the same test
several days later to the same group, and then
correlate the first set of scores with the second
2. Equivalent or alternate form estimate: you could

administer a test and then administer what experts
believe to be an equivalent test later.
 The Scholastic Assessment Test (SAT) is an example.
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• The SAT (previously referred to as the Scholastic
Aptitude Test, then the Scholastic Assessment
Test, and now simply the SAT) is a standardized
test used for college and university admissions in
the United States (and, more recently, in
universities abroad).
• The present day SAT is intended to test a student’s

readiness for college. It is designed to test a
student’s mathematical aptitude, reading
comprehension, essay writing ability, and
knowledge of basic high school level grammar
concepts.
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3. Internal comparison estimate: compare the test taker’s
answers to certain questions on the test with his or her answers to a
separate set of questions on the same test aimed at measuring the
same thing.
 For example, a psychologist includes 10 items on a test

believing that they all measure interest in working outdoors. You
administer the test and then statistically analyze the degree to
which responses to these 10 items vary together. This is an
internal comparison estimate. (Internal comparison is one reason
that you find apparently repetitive questions on some test
questionnaires.)
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What Can Cause a Test to be Unreliable?
These include the following:

 Physical conditions -(quiet one day, noisy the next),
 Differences in the test taker (healthy one day, sick the next),
and
 Differences in test administration (courteous one day, rude the
next).
 Or the questions may do a poor job of sampling the material;
for example, test one focuses more on Chapters 1 and 3, while
test two focuses more on Chapters 2 and 4.
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Reliability Coefficient
• Because measuring reliability generally involves

comparing two measures that assess the same thing, it
is typical to judge a tests reliability in terms of a
reliability coefficient
• Reliability Coefficient: shows the degree to which the

two measures (say, test score one day and test score the
next day) are correlated.
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2. Test Validity
• Validity: is a selection tool’s defined as the

accuracy with which a test, interview, and so on,
measure what is purports to measure or fulfills the
function it was designed to fill.
• A test should be job related
• Performance on a test should be a valid predictor of
subsequent performance on the job.
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Test Validity
• Test validity answers the question Does the test
actually measure what we need for it to measure?
• Validity refers to the accuracy of the inferences that we can

make based on the test.
 For example, if Janes scores on mechanical comprehension
tests are higher than Jims, can we be sure that Jane
possesses more mechanical comprehension than Jim?
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How to demonstrate Validity?
A. Criterion Validity
B. Content Validity
C. Construct Validity

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B. Content Validity
 Content validity
– A test that is content valid is one that contains
a fair sample of the tasks and skills actually
needed for the job in question.
• Do the test questions in this course relate to human
resource management topics?
• Is taking an HR course the same as doing HR?
– Need to identify the tasks that are related to
performance, then select a sample of those
tasks to be tested.

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Content Validity
• Content validity is a demonstration that the content of a

selection procedure is representative of important aspects of
performance on the job.
• For example, employers may demonstrate the content validity
of a test by showing that the test constitutes a fair sample of
the jobs content.
• The basic procedure here is to identify job tasks that are
critical to performance, and then randomly select a sample of
those tasks to test. In selecting students for dental school,
many schools give applicants chunks of chalk, and ask them to
shape something that looks like a tooth.
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A. Criterion Validity
 Criterion validity
– A type of validity based on showing that scores
on the test (predictors) are related to job
performance (criterion)
– It involves demonstrating statistically a
relationship between scores on a selection
procedure and job performance of a sample of
workers.
• i.e. Those who do well on the test will also do well on the
job.
• Are test scores in this class related to students’
knowledge of human resource management?
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• Construct validity – involves demonstrating that (a) a

selection procedure measures a construct (an abstract idea
such as morale or honesty) and (b) the construct is
important for successful job performance.
• Construct validity. Instead of directly testing or using other

information to predict job success, some selection methods
seek to measure the degree to which an applicant
possesses psychological traits called constructs.
• Constructs include intelligence, leadership ability, verbal
ability, mechanical ability, manual dexterity, etc.
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• This method often relates to tests that may measure

abstract traits of an applicant.
• For example, construct validity may be used when a bank
desires to test its applicants for "numerical aptitude." In this
case, an aptitude is not an observable behavior, but a
concept created to explain possible future behaviors. To
demonstrate that the test possesses construct validation
support, ". . . the bank would need to show (1) that the
test did indeed measure the desired trait and (2) that this
trait corresponded to success on the job"
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Criterion Validity Versus Content Validity
• Content validity
– The test
constitutes a fair
sample of the
content of a job

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Evidence-Based HR: How to Validate a Test
• Employers often opt to demonstrate evidence of a test s

validity using criterion validity.
• In order for a selection test to be useful, you need evidence
that scores on the test relate in a predictable way to
performance on the job.
• Thus, other things being equal, students who score high on the
graduate admissions tests also do better in graduate school.
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Evidence-Based HR: How to Validate a Test
The validation process consists of five steps:

Step 1: Analyze The Job: The first step is to analyze the
job and write job descriptions and job specifications. The aim here
is to specify the human traits and skills you believe are required for
job performance.

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Step 2: Choose the Tests use test in a manner consistent
with equal employment laws and in a manner that
is ethical and protects the test taker’s privacy.
Once you know the predictors (such as manual dexterity) the next step is
to decide how to test for them.
Step 3: Administer the Test - Next, administer the selected test(s).

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.
Administer the Test – with employees currently on the job, you compare
their test with their current performance. A more trusty way is to test
applicants before you hire them, then measure their performance and
compare it to earlier test scores.
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 Its advantage is that data on performance are readily available. The
disadvantage is that current employees may not be representative
of new applicants (who, of course, are really the ones for whom
you are interested in developing a screening test).
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Step 4: Relate Your Test Scores and Criteria -
Here, ascertain if there is a significant relationship between
test scores (the predictor) and performance (the criterion).
 The usual method is to determine the statistical relationship

between (1) scores on the test and (2) job performance
using correlation analysis, which shows the degree of
statistical relationship.
 If there is a correlation between test and job performance, you
can develop an expectancy chart. This presents the
relationship between test scores and job performance
graphically.
 Expectancy chart :A graph showing the relationship

between test scores and job performance for a group of
people.
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Step 5: Cross-Validate and Revalidate - Before using the
test, you may want to check it by “cross-validating”—in other
words, by again performing steps 3 (Administer the Test) and 4
(Relate Your Test Scores and Criteria ) on a new sample of
employees. At a minimum, revalidate the test periodically.
Cross-Validate and Revalidate – before using the test,

you may want to check it by performing steps 3 and 4
on a new sample of employees, in other words –
revalidate.
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Bias – employers must be careful to avoid bias whenever
possible.
Utility – knowing the test is reliable and valid is important, but
one must also consider the practical use of the test.
Completing a utility analysis shows the degree to which a

selection test improves the quality of those selected versus
what decision would have been made without it. Utility
analysis usually includes the validity of the measures, a
measure of job performance in dollars, the applicant’s
average test scores, the cost of the measure, and the
number of applicants tested and selected.
Validity Generalization – “refers to the degree to which

evidence of a measure’s validity obtained in one situation
can be generalized to another situation without further
study.”
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Know Your Employment Law
Testing and the Equal Employment Opportunity – with
respect to testing, the EEO laws spot down to two things:
a)you must be able to prove that your tests are related
to success or failure on the job,
and b) you must prove that your tests don’t unfairly
discriminate against either minority or nonminority
subgroups.
Test Takers’ Individual Rights and Test Security – test takers

have certain rights to privacy and information under the
American Psychological Association’s (APA) standard for
educational and psychological tests.

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The Federal Privacy Act provides protection against
disclosing information about them to people outside the
company.
Diversity Counts: Gender Issues in Testing – gender issues

may mislead results.
How Do Employees Use Tests at Work? – in general, as work

demands increase (in terms of skill requirements, training,
and pay), employers tend to rely more on selection testing.
And employers don’t use tests just to find good employees,
but also to screen out bad ones.

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III.
List and briefly describe the
basic categories of selection
tests, with examples.
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Types of Tests
• We can conveniently classify tests according to
whether they measure:
1. Test of Cognitive Abilities
A. Intelligence tests (IQ)
B. Specific cognitive abilities (aptitude test)
2. Test of Motor & physical abilities
3. Measuring Personality and Interests
o Interest inventories
4. Achievement tests
6-48
• Cognitive tests include tests of:

A. General reasoning ability (intelligence)
B. Tests of specific mental abilities like memory
and inductive reasoning.
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A. Intelligence Tests
– Tests of general intellectual abilities
that measure a range of abilities,
including memory, vocabulary, verbal
fluency, and numerical ability.
– They measure not a single trait but rather a
range of abilities
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A. Intelligence Tests Examples

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Aptitude tests
– Tests that measure specific mental abilities,
such as inductive and deductive reasoning,
verbal comprehension, memory, and
numerical ability.
– Psychologists often call such tests aptitude
tests, since they purport to measure aptitude
for the job in question.

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B. Intelligence Tests Examples
`

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• Consider the Test of Mechanical Comprehension in Figure 6-6,

which tests applicants understanding of basic mechanical
principles.
• This may reflect a persons aptitude for jobs like that of
machinist or engineer that require mechanical comprehension

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Motor abilities
– You might also want to measure motor
abilities, such as finger dexterity, manual
dexterity, and (if hiring pilots) reaction time.
– The Crawford Small Parts Dexterity Test is an
example. It measures the speed and accuracy
of simple judgment as well as the speed of
finger, hand, and arm movements.

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Physical abilities
– Tests of physical abilities may also be required.
– These include static strength (such as lifting
weights),dynamic strength (like pull-ups),body
coordination (as in jumping rope), and energies

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Physical abilities
– Thus, applicants for the U.S. Marines must

pass its Initial Strength Test (2 pull ups,35 sit-
ups,and a 1.5 mile run).
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3. Measuring Personality and Interests Tests
• A persons cognitive and physical abilities alone seldom

explain his or her job performance. Other factors, like
motivation and interpersonal skills, are very important.
• As one consultant put it, most people are hired based on

qualifications, but most are fired for non-performance. And
nonperformance is usually the result of personal
characteristics, such as attitude, motivation, and especially,
temperament

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a- Personality tests
Personality tests
– Involves the use of projective techniques and trait
inventories to measure basic aspects of an applicant’s
personality, such as introversion, stability, and
motivation.

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Personality tests
• Some of these tests are projective. The psychologist
presents an ambiguous stimulus ( clouded picture) to
the person. The person then reacts to it.
• Since the pictures are ambiguous, the person supposedly

projects into the picture his or her attitudes.
•
• in psychology, a projective test is a personality test
designed to let a person respond to ambiguous stimuli,
seemingly revealing hidden emotions and internal
conflicts projected by the person into the test.
• Other personality tests are self-reported: applicants fill

them out themselves. Thus, the Guilford-Zimmerman
survey measures personality traits like emotional stability
versus moodiness, and friendliness versus criticalness.
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Personality tests
• This is sometimes contrasted with a so-called "objective
test" or "self-report test" in which responses are
analyzed according to a supposed universal standard
(for example, a multiple choice exam), and are limited
to the content of the test.
• The responses to projective tests are content analyzed
for meaning rather than being based on assumptions
about meaning, as is the case with objective tests.

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Projective Test Example
• Describe this photo?

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Projective Test Example
• A security-oriented person might describe the ink blot

in as A huge insect coming to get me.

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The “Big Five”
 Extraversion
– The tendency to be sociable, assertive, active, and to experience
positive effects, such as energy and zeal.
 Emotional stability/ neuroticism
– The tendency to exhibit poor emotional adjustment and experience
negative effects, such as anxiety, insecurity, and hostility.
 Openness to experience
– The disposition to be imaginative, nonconforming, unconventional,
and autonomous.
 Agreeableness
– The tendency to be trusting, compliant, caring, and gentle.
 Conscientiousness
– Is comprised of two related facets: achievement and dependability

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Do Personality Tests Predict Performance?
• It seems to make sense that personality tests would predict

performance. After all, wouldn’t an extroverted person do better
in sales?
• In fact, personality traits do often correlate with job performance. In
one study, extraversion, conscientiousness, and openness to
experience were strong predictors of leadership.
• In another study, neuroticism was negatively related to motivation,
while conscientiousness was positively related to it.
• Other traits correlate with occupational success. For example,

extraversion correlates with success in sales and management jobs.
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Advantages of personality tests
– Have been used successfully to predict dysfunctional job

behaviors and identify successful candidates for overseas
assignments.

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Disadvantages of personality tests
• Personality tests have three majors Caveats:
• First, projective tests are hard to interpret. An

expert must analyze the test takers interpretations and
conclude from them his or her personality. The tests
usefulness then assumes theres a measurable
relationship between a personality trait (like
introversion) and success on the job

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Disadvantages of personality tests
• Second, personality tests can cause legal challenges.

For example, one court held that the MMPI is a medical
test (because it can screen out applicants with
psychological impairments),and so might violate the
ADA.
• Third, some dispute that self-report personality tests
predict performance at all.
• Fourth, Are the most difficult tests to evaluate and use,

particularly the projective type.
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B- Interest Inventories (Tests)
Interest inventories
– Personal development and selection devices that compare
the person’s current interests with those of others now
in various occupations so as to determine the preferred
occupation for the individual.
– Interest inventories have many uses:
– First, They’re irreplaceable in career planning, since a
person will likely do better in jobs that involve activities in
which he or she is interested.
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B. Interest Inventories (Tests)
– Second, They’ re also useful in selection. If you can

select people whose interests are roughly the same
as those of successful incumbents in the jobs for
which you re recruiting, its more likely that those
applicants will be successful.

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5. Achievement tests
Achievement tests
– Test that measure what a person has already learned—
“job knowledge” in areas like accounting, marketing, or
personnel.
– They measure your job knowledge in areas like
economics, marketing, or human resources.
– Achievement tests are also popular at work.

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IV.
Explain how to use two
work simulations for
selection.

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Work Samples and Simulations

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Work Samples and Simulations
• With work samples, you present examinees with situations

representative of the job for which they re applying, and
evaluate their responses
 Work samples
– Actual job tasks are used in testing applicants’
performance.
 Work sampling technique
– A testing method based on measuring an
applicant’s performance on actual basic job
tasks.
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Work Samples and Simulation
• Experts consider work samples (and simulations,

like the assessment centers) to be tests.
• However, they differ from most tests, because they
measure job performance directly.
• For example, work samples for a cashier may
include operating a cash register and counting money.

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Work Samples and Simulation
Measuring Work Performance

Directly
Management Video-based Miniature job

Work
assessment situational training and
samples
centers testing evaluation

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1. Work Sampling
• The work sampling technique tries to predict job

performance by requiring job candidates to perform
one or more samples of the jobs tasks.

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Work Sampling Advantages
• Work sampling has several advantages.
• First, It measures actual job tasks, so its harder to fake answers.

• Second, The work samples content the actual tasks the person must
perform is not as likely to be unfair to minorities (as might a
personnel test that possibly emphasizes middle-class concepts and
values).
• Third, Work sampling doesn’t delve into the applicants
personality, so there’s almost no chance of applicants viewing it as
an invasion of privacy.
• Fourth, Designed properly, work samples also exhibit better
validity than do other tests designed to predict performance.

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Work Simulations
2. Management Assessment Center
Management assessment center

– A simulation in which management candidates are
asked to perform realistic tasks in hypothetical
situations and are scored on their performance.
– It usually also involves testing and the use of
management games.
– It is a 2- to 3-day simulation in which 10 to 12
candidates perform realistic management tasks (like
making presentations) under the observation of
experts who appraise each candidates leadership
potential

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• The center itself may be a simple conference room,

but more likely a special room with a one-way mirror
to facilitate observation. Many firms use assessment
centers.
• For example, The Cheesecake Factory created its
Professional Assessment and Development Center to
help select promotable managers. Candidates spend 2
days of exercises, simulations, and classroom
learning to see if they have the skills for key
management positions

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Typical simulated exercises include:

A. In-basket: This exercise confronts the candidate
with an accumulation of reports, memos, notes of
incoming phone calls, letters, and other materials
collected in the actual or computerized in-basket of
the simulated job he or she is about to start.
 The candidate must take appropriate action on
each item. Trained evaluators then review the
candidates efforts.

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B. Leaderless group discussion: trainers give a leaderless

group a discussion question and tell members to arrive at a
group decision.
 They then evaluate each group member s interpersonal
skills, acceptance by the group, leadership ability, and
individual influence.

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C. Management games: Participants solve realistic

problems as members of simulated companies
competing in a marketplace.
D. Individual presentations: Here trainers evaluate

each participants communication skills and
persuasiveness by having each make an assigned oral
presentation.
E. Objective tests: An assessment center typically

includes tests of personality, mental ability,
interests,and achievements.

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E. Interview: Most also require an interview between

at least one trainer and each participant, to assess
the latters interests, past performance, and
motivation

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3. Situational testing and Video-Based situational
testing
 Situational Testing
– Situational tests require examinees to respond to
situations representative of the job. Work sampling
(discussed earlier) and some assessment center
tasks (such as in baskets) fall in this category

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testing
 Video-Based situational testing

– A situational test comprised of several video
scenarios, each followed by a multiple choice
question that requires the candidate to choose
from among several courses of action.
– While the evidence is mixed, the results
suggest that video-based situational tests can
be useful for selecting employees.

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testing
 Video-Based situational testing

– The video-based simulation presents the
candidate with several online or PC-based
video situations, each followed by one or more
multiple-choice questions.
– For example, the scenario might depict an
employee handling a situation on the job. At a
critical moment, the scenario ends and the
video asks the candidate to choose from
several courses of action

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4. The miniature job training and evaluation
approach
 The miniature job training and evaluation

approach
– Candidates are trained to perform a sample of
the job’s tasks, and then are evaluated on their
performance.
– The approach assumes that a person who
demonstrates that he or she can learn and
perform the sample of tasks will be able to
learn and perform the job itself

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V.
Describe four ways to improve
an employer’s background
checking process.

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Background Investigations and
Other Selection Method

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Why Perform Background Investigations
and Reference Checks?

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Know Your Employment Law
Giving References
Let’s take a look…

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How to Check a Candidates
Background?

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Trends Shaping HR:
Digital and Social Media
Digital Tools -
Background Checks
Let’s talk about it…

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Using Pre-employment Information
Services

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Making the Background Check
More Valuable

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The Polygraph and Honesty Testing
• Meet Standards
• Written Honest Test
• Testing for Honesty
Guidelines

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Graphology

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“Human Lie Detectors”

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Physical Exams

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Substance Abuse Screening
and
Drug Testing Legal Issues

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Comply with Immigration Law

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Chapter 6 Review
What you should now know….

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6-4. Explain how to use two work

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• Once you review your applicants (CV), the next step is

The Importance of Selecting

Organizational Legal obligations

• It is important for three main reasons:

• First, your own performance always depends on

• The time to screen out undesirables is before they

• Second, it is important because its costly to recruit and

• Hiring and training even a clerk can cost $5,000 or

• The total cost of hiring a manager could easily be 10

• For one thing, equal employment laws require

• Negligent Hiring: Hiring workers with questionable

• The main aim of employee selection is to achieve

• Person-job fit refers to matching:

• However, a candidate might be right for a job, but wrong

• Thus, while person-job fit is usually the main

• For example, a highly experienced airline pilot might do

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• A test is basically a sample of a persons behavior.

• Using a test (or any selection tool) assumes the tool is

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• You can measure reliability in several ways:

2. Equivalent or alternate form estimate: you could

• The present day SAT is intended to test a student’s

 For example, a psychologist includes 10 items on a test

These include the following:

• Because measuring reliability generally involves

• Reliability Coefficient: shows the degree to which the

• Validity: is a selection tool’s defined as the

• Validity refers to the accuracy of the inferences that we can

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• Content validity is a demonstration that the content of a

• Construct validity – involves demonstrating that (a) a

• Construct validity. Instead of directly testing or using other

• This method often relates to tests that may measure

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• Employers often opt to demonstrate evidence of a test s

The validation process consists of five steps:

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Step 3: Administer the Test - Next, administer the selected test(s).

 The usual method is to determine the statistical relationship

 Expectancy chart :A graph showing the relationship

Cross-Validate and Revalidate – before using the test,

Completing a utility analysis shows the degree to which a

Validity Generalization – “refers to the degree to which

Test Takers’ Individual Rights and Test Security – test takers

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Diversity Counts: Gender Issues in Testing – gender issues

How Do Employees Use Tests at Work? – in general, as work

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• Cognitive tests include tests of:

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• Consider the Test of Mechanical Comprehension in Figure 6-6,

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