Introduction Introduction

Understanding the strategies used to implement

Personnel Selection: selection procedures is crucial
Strategic Issues in the Deployment of Strategic issues include:
Selection Systems – Attracting the best talent
– Ensuring predictors are valid and legally defensible
Chapter 7 – Administering multiple predictors
– Combining predictor data to make best hiring
decisions
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Strategic Issues Recruitment Recruitment

Choose Consider How the Choose Consider How the

Address Address
Recruitment Ensure that Applicants Recruitment Ensure that Applicants
Strategies for Strategies for
Strategies that Predictors Are Ensure that Experience the Strategies that Predictors Are Ensure that Experience the
Administering Administering
Maximize a Large Valid in Order to Predictors Are Hiring Process Maximize a Large Valid in Order to Predictors Are Hiring Process
Predictors and Predictors and
Number of Hire the Best Legally Defensible Number of Hire the Best Legally Defensible
Using Predictor (Applicant Using Predictor (Applicant
Qualified Employees Reactions) Qualified Employees Reactions)
Data Data
Applicants Applicants

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Recruitment Recruitment Increase the Number of Applicants

Recruitment: focuses on increasing the number of Goals of successful recruitment: Attract Candidates
(Recruitment) Attract Candidates
(Recruitment)
applicants, their quality and fit with the job – Increasing the number of applicants 30 Candidates
100 Candidates
openings and with the organization’s culture, while – Increasing the number of qualified applicants Assess Candidates
at the same time meeting the organization’s legal – Increasing and maintaining workforce diversity
(Selection)
Assess Candidates
and ethical obligations with regard to diversity (Selection)
(Gatewood et al., 2018) Hire
10
VS.
Hire
10

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 What Factors Affect Applicant
Recruitment Methods Validity of Selection Procedures
Attraction to the Organization?
There are many ways to recruit:
– Career websites • Characteristics of the job and of the organization
– Social networking sites • Behavior of the recruiter
– Employee referral programs
– Career fairs • Individuals’ perceptions of their potential fit in
the organization
Different methods for recruitment vary in terms of
cost, attracting a diverse group of applicants, and the • Image of the organization
degree to which information about the job and
organization can be communicated
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Validity of Selection Procedures Personnel Selection Procedures Content Validity

Importance of validity in personnel selection:
1. There is no point to using a selection procedure
Choose
Address Consider How the
with unknown or low validity
Recruitment Ensure that Applicants
Strategies for
Strategies that
Maximize a Large
Predictors Are
Valid in Order to
Ensure that
Predictors Are
Administering Experience the 2. Predictors with high validity enable organizations
Predictors and Hiring Process
Number of
Qualified
Hire the Best
Employees
Legally Defensible
Using Predictor (Applicant to hire the best talent
Data Reactions)
Applicants
3. In the U.S., proof of validity is essential for
defending tests and other measures in case they
are found to have adverse impact
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Content Validity Content Validity Content Validity

Content Validity: degree to which a selection Face Validity: degree to which a selection
procedure has been developed to sample the job in procedure seems job-related to a job applicant
terms of the required KSAs Job Domain
(KSAs) Face validity can be influenced by content
Relies heavily on detailed job analysis and SME validity, but the two terms are not synonymous
opinion Sample of
Job Domain Content validity involves the judgment of SMEs
Comes in handy in situations where there are only (KSAs) via that the procedure is job-related and the
small samples, as it is a legally defined method Selection tool thorough documentation of their judgment
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 Construct Validity Construct Validity Criterion-Related Validity
Construct Validity: involves showing that a test
or measure has an expected pattern of
relationships with other measures
In personnel selection:
1. Make sure the test is a good measure of the
intended construct
2. Demonstrate the link between the construct and
the job (via job analysis)
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Advantages & Disadvantages of

Criterion-Related Validity Criterion-Related Validity
Predictive & Concurrent Validity
Criterion-Related Validity: involves showing the empirical Two ways to conduct a criterion-related validity Concurrent validity:
relationship between a test and some outcome that you study: – Easier and faster
care about – Good for situations in which the organization is not comfortable
1. Predictive validity study with the idea of not immediately using test scores to make
In personnel selection, we want to demonstrate a clear • Give test(s) to a group of applicants decisions
relationship between the test (predictor) and job • At a later time point, collect criterion data from the
– Evidence indicates that in practice concurrent validity yields
performance validity results that are as good as those found with predictive
applicants you hired validity (Schmitt et al., 1984)
– Demonstrate a statistically significant correlation between • Correlate test scores with criterion data
the test and the job performance criterion (i.e., significant Predictive validity:
validity coefficient) 2. Concurrent validity study
– Involves validating the test on the population for which you plan
– Multiple regression can be used to empirically determine • Give test(s) to current employees to use it (i.e., applicants)
the best way to combine multiple predictors (a selection • Correlate their test scores with their current job – Less susceptible to a statistical issue called range restriction
battery) performance (criterion data) wherein there is reduced variability in test scores
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Illustration of Range Restriction Illustration of Range Restriction Cross-Validation

Cross-validation is used to increase confidence
that the validity coefficient, regression weights,
Job Performance

Job Performance

Range restriction from

the elimination of
or R2 value found in one study was in fact
Full range of test scores
people who did not accurate
score well on the test
and job performance
and then employees
who did not perform The larger the original validation sample used,
well on the job
the more accurate the study will be
Test Score Test Score

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 Validity Generalization vs.
Two Approaches to Cross-Validation Two Approaches to Cross-Validation
Situational Specificity
1. Empirical Cross-validation 2. Statistical Cross-validation
Conduct criterion-related validity study on Sample 1.
– Most statistical software packages provide an R2
Determine regression weights for each test in value and an adjusted R2 value
predicting job performance.
– An adjusted R2 value estimates based on the
characteristics of the sample (e.g., its size) how
In a second sample, see if the regression weights much shrinkage one could expect
from Sample 1 predict job performance in Sample 2.
• Shrinkage: The R2 value will always be smaller in the
second sample due to chance characteristics of the
Were the regression weights from Sample 1
effective in predicting job performance in Sample 2?
sample
If so, it means that the regression weights were
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Validity Generalization vs. Validity Generalization vs.

Situational Specificity
Validity
Generalization
assumption that a test that
is valid for one job will be
valid for other, similar jobs
Situational
Specificity
belief that just because a
VS. test was been shown to be
valid in one setting, you
cannot assume that it will
be valid in other settings,
even if the two situations
are similar
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Legal Issues in Hiring
Situational Specificity
After accumulated meta-analytic evidence, I/O
psychologists generally agree that test validities are
likely to generalize across situations, as long as the
jobs are similar in terms of the KSAs required for
each (SIOP Principles, 2003)
The courts and Uniform Guidelines, however, are in
favor of a situational specificity approach, such that
tests should be validated for each situation in which
they are used (Gatewood et al., 2011)
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Legal Issues in Hiring Background & Definitions Background & Definitions

Civil Rights Law What It Covers
Title VII of the Civil Rights Act (1964) Race, color, sex, religion, and national origin
Based on proliferation of case law, the U.S.
Age Discrimination in Employment Act government developed the Uniform Guidelines
People over 40
Choose
(1967) on Employee Selection Procedures (1978)
Address Consider How the The Rehabilitation Act (1973) Mental and physical disabilities
Recruitment
Strategies that
Ensure that
Predictors Are Ensure that
Strategies for Applicants
Experience the Immigration Reform and Control Act
– Not technically law but treated like law by the
Administering
Maximize a Large
Number of
Valid in Order to
Hire the Best
Predictors Are
Legally Defensible
Predictors and Hiring Process (1986) National origin courts
Using Predictor (Applicant
Qualified
Applicants
Employees
Data Reactions) Americans with Disabilities Act (1990) Mental and physical disabilities – Provide significant guidance to employers about
Race, color, sex, religion, and national key issues such as how to validate tests
origin. This 1991 Civil Rights Act also
Civil Rights Act of 1991 outlawed “within group norming” or score
– Apply to employers with 15 or more employees
adjustment to reduce adverse impact. – Frequently criticized for being outdated
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 Background & Definitions Background & Definitions Discrimination
Equal Employment Opportunity Commission (EEOC): In addition to congressional legislation and case Disparate Treatment:
government agency charged with monitoring law, Executive Orders govern the employment intentional discrimination on
organizations’ activities about providing equal the part of an organization or
opportunity to all groups, such as through selection
practices of federal contractors decision maker
procedures and pay
Individual U.S. states may have extra legal Adverse Impact: does not
Protected group: any subgroup of individuals protections for its citizenry imply intention on the part of
protected under the law, such as women and people the employer, but simply that
over 40 years of age a test or predictor favors one
group over another
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Steps in an Adverse Impact Case Adverse Impact Case Step 1 Example One: 4/5 Rule
• Step 1: Plaintiff Plaintiff demonstrates adverse impact: 1,000 White men and 100 Black men apply for job openings. If the
organization hires 100 of the Whites and 9 of the Blacks, is it in
demonstrates adverse – Has to establish that selection practice has violation of the 4/5 rule?
impact adverse impact against the group to which they Steps:
belong 1. Calculate selection ratio for each group
• Step 2: Employer – Blacks: 9/100 = .09
– May use the 4/5 (or 80%) rule to demonstrate Whites: 100/1,000 = .10
demonstrates test validity adverse impact
–
2. Divide the selection ratio for Blacks by the selection ratio for
• Based off selection ratio: number of vacant positions Whites
• Step 3: Plaintiff – .09/.10 = 9/10 = 90% (or greater than 80%)
divided by the number who applied
demonstrates other • Selection ratio for the protected group must be at least
predictors were available 80% of that selection ratio for the unprotected group Employer not in violation of 4/5 rule
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Example Two: 4/5 Rule Adverse Impact Case Step 2 Adverse Impact Case Step 3
1,000 White men and 100 Black men apply for job openings. If the
organization hires 900 of the Whites and 70 of the Blacks, is it in Employer demonstrates test validity: Plaintiff demonstrates other predictors were
violation of the 4/5 rule? available:
– Once a plaintiff has shown that adverse impact
Steps: exists, the “burden of proof” shifts to the
1. Calculate selection ratio for each group
– If the employer is able to show that the selection
– Blacks: 70/100 = .70 employer procedure is valid, the last recourse for the
– Whites: 900/1,000 = .90 – Employer may defend selection procedure by plaintiff is to show that other, equally valid
2. Divide the selection ratio for Blacks by the selection ratio for
Whites showing its validity selection procedures with lower adverse impact
– .70/.90 = 7/9 = 78% (or less than 80%) were available for the employer to use

Employer in violation of 4/5 rule

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 Strategies for Administering Strategies for Administering Which Predictors Should Be
Predictors & Using Predictor Data Predictors & Using Predictor Data Considered?
• Based on the job analysis data, consider the KSAs
measured by the predictor, and the relevance of
the KSAs to the job
Choose Consider How the
Address
Recruitment Ensure that Applicants
Strategies for
Strategies that
Maximize a Large
Predictors Are
Valid in Order to
Ensure that
Predictors Are
Administering Experience the • Predictors should measure unique variance in job
Predictors and Hiring Process
Number of
Qualified
Hire the Best
Employees
Legally Defensible
Using Predictor (Applicant performance—that is, predictors that are not
Data Reactions)
Applicants redundant with each other
– Predictors should be highly correlated with the
criterion of job performance but not correlated with
each other
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Which Predictors Should Be

Strong Predictor Battery Poor Predictor Battery
Considered?
• Based on the job analysis data, consider the
Ideally, predictors should We don’t want a situation where
KSAs measured by the predictor, and the Integrity
the predictor measures
be highly correlated with Test
relevance of the KSAs to the job the criterion of job
substantially overlap with each
other
Structured Structured
performance but not Job Performance Interview Job Performance Interview
Notice how more redundancy in
• Predictors should measure unique variance in correlated with each other Criterion for a the predictors leads to less
Criterion for a
job performance—that is, predictors that are Sales Job variance explained in the Sales Job
criterion
not redundant with each other
Extraversion Extraversion
Test Tests I & II
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Deciding Predictor Weights Administering Predictors Administering Predictors

Two approaches to deciding the relative weight of each Two methods for sequencing of predictors: After determining how to sequence selection procedures,
– Multiple cutoff approach: a decision must be made whether to set cutoff scores for
predictor: each test
• All of the predictors are given at the same time
– Evidence from the job analysis can indicate the relative
• Set cutoff scores for the procedures
importance or criticality of each KSA • Good option for situations where administering the test and Cutoff scores stipulate that an applicant must receive a
– Determine the weights of each measure empirically, using providing feedback in a timely manner is important minimum score on each predictor to be considered for
regression – Multiple hurdle approach: hiring
• Example regression equation with empirical weights: • Predictors given in a sequence
• Usually the more inexpensive selection procedures are given first
If cutoff scores are not used, an applicant’s high score on
• Applicants only proceed to the next “hurdle” if they pass the
! = $ %!"#$%&!$'()* + ' %(*#!+$(#, + $ %(*#!$&(!- + (. *
"
previous hurdle
one predictor can be used to compensate for his/her low
• This is an efficient and economic option but usually takes longer
score on another predictor
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 Types of Cutoff Score Norm-Based Cutoff Score Criterion-Referenced Cutoff Score
Minimum Job
Performance
Two types of cutoff scores: Organization sets the cutoff score as the First approach:
– Norm-based average score based on the norms of the – Determine which
applicant group predictor score

Job Performance
– Criterion-referenced corresponds to a
minimum level of Test Score
Problem: method does not link the test score to job performance Corresponding to
Minimum Job
– Use multiple
job performance regression
Performance

Test Score
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Criterion-Referenced Cutoff Score Banding Accuracy in Prediction

Second approach: Banding: treating ranges of scores as similar Selection procedures help organizations make
Because all selection procedures contain some unreliability better hiring decisions, but the quality of those
– Use SME judgment decisions will be based on validity of the
and hence some measurement error, test scores that are not
– A typical method is referred to as the Angoff far apart are essentially equivalent—in other words, such procedures
method in which a panel of SMEs judge what scores are not meaningfully different
Selection decision can be categorized according to:
predictor score would correspond to minimal Bands can be calculated based on characteristics of the – False Negatives
competence on the job predictor (e.g., reliability)
– False Positives
Banding can be controversial in the U.S. because of its use as – True Positives
a method to reduce score differences between different
ethnic groups – True Negatives

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Four Quadrants of Selection Decisions Four Quadrants of Selection Decisions Four Quadrants of Selection Decisions

The goal is to maximize False Negatives True Positives When validity is very False Negatives True Positives False Negatives True Positives

true positives and true high, the number of

Job Performance

Job Performance

Job Performance
negatives (“hits”) “misses” falls close to When validity is very low,
zero we are just as likely to
We also want to minimize make good decisions as
Thus, we are very likely
false positives and false we are to make bad
True Negatives False Positives
to make optimal True Negatives False Positives True Negatives False Positives
negatives (“misses”) decisions
decisions
Test Score Test Score Test Score

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 Four Quadrants of Selection Decisions Four Quadrants of Selection Decisions Predictor Utility
Selection Utility: monetary value of a personnel
Increasing the passing False Negatives True Positives Decreasing the passing False
score decreases false Negatives
True Positives
selection procedure
score increases false

Job Performance

Job Performance
positives, but increases positives, but decreases In other words, utility analysis is largely a
false negatives the false negatives calculation of return on investment (ROI) for using
That being said, almost all a selection procedure (benefits: cost)
employees who pass the In this case, all applicants
True Negatives False Positives
that might be successful
True
False Positives While valuable for demonstrating the value of a
test would be successful Negatives
on the job would be hired selection procedure, utility findings can be difficult
on the job Test Score Test Score to communicate to managers
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Three Specific Issues that Can Affect

Applicant Reactions Legal Issues in Hiring
the Utility of a Selection Procedure
1. Cost of using a selection procedure can
affect how valuable it is to an organization Choose
Address Consider How the
2. Validity of a selection procedure Recruitment
Strategies that
Ensure that
Predictors Are Ensure that
Strategies for
Administering
Applicants
Experience the
Maximize a Large Valid in Order to Predictors Are Hiring Process
Predictors and
3. Selection ratio: number of vacancies relative Number of
Qualified
Hire the Best
Employees
Legally Defensible
Using Predictor
Data
(Applicant
Reactions)
Applicants
to the number of job applicants

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Applicant Reactions Applicant Reactions Applicant Reactions

Most Preferred
In the past 25 years, researchers have begun to by Applicants
•
•
Work Samples
Interviews
Evidence suggests that it is effective for
look at personnel selection procedures through employers to explain to applicants why they are
the lens of the job applicant using certain selection procedures (Truxillo et al.,
Moderately • Resumes • Biodata 2002, 2009)
– What do applicants think about the selection Preferred
•
•
Cognitive Tests
References
• Personality Tests

procedure? Applicants’ perceptions about how fairly they

– Do they perceive the procedure as fair? are treated during the hiring process can affect
Least Preferred • Integrity/Honesty Tests

by Applicants
•
•
Personal Contacts
Graphology
whether they accept a position that is offered to
them (Harold et al., 2016)
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