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Chapter 07 - Selecting Employees

Chapter 07
Selecting Employees

True / False Questions

1. The objective of the selection process is to seek and attract attention of qualified
candidates.
True False

2. According to the EEOC and the courts, inquiries about race, color, national origin, or
religion are illegal per se.
True False

3. An applicant flow record is required to be filled by all applicants as part of the selection
process.
True False

4. Courts have ruled that an individual's arrest record is a lawful basis for refusal to hire.
True False

5. Any procedure that is used to make selection decisions is construed to be a test.

True False

6. Psychomotor tests measure the job-related knowledge possessed by the applicant.

True False

7. Reasoning tests measure the ability to visualize objects in space and determine their
relationships.
True False

7-1
Chapter 07 - Selecting Employees

8. Polygraph tests are widely used today to screen out undesirable job candidates.
True False

9. Chemical testing, such as for drugs or AIDS, is not prohibited.

True False

10. People with AIDS and people who test positive for HIV antibodies are protected in their
jobs by the Vocational Rehabilitation Act.
True False

11. Overgeneralizing refers to a problem that the interviewer may allow a single prominent
characteristic to dominate judgment of all other traits.
True False

12. An unstructured interview does not have a predetermined checklist of questions.

True False

13. The Privacy Act of 1974 prevents government agencies from making their employment
records available to other organizations without the consent of the individual involved.
True False

14. The Americans with Disabilities Act stipulates that a physical exam cannot be conducted
until after a job offer has been extended to a job candidate.
True False

15. The validity of a predictor refers to the extent to which a criterion predictor produces
consistent results.
True False

7-2
Chapter 07 - Selecting Employees

16. A criterion predictor never correlates perfectly with a criterion of job success.
True False

17. Predictive validation is used frequently because it is cost-efficient and fast.

True False

18. One advantage of concurrent validation is that in situations in which either racial or sexual
discrimination has been practiced in the past, minorities and women will be adequately
represented.
True False

19. The split halves method used to determine reliability involves administering the test to a
group of employees and later, usually in about two to four weeks, giving the same group the
same test.
True False

20. Adverse impact is a condition that occurs when the selection rate for women and
minorities is less than 80 percent of the selection rate for the majority group in hiring,
promotions, transfers, demotions, or any selection decision.
True False

Multiple Choice Questions

21. Which of the following is a prerequisite to the selection process?

A. Orientation
B. Appraisal
C. Recruitment
D. Exit interview

7-3
Chapter 07 - Selecting Employees

22. The first step of the selection process is:

A. the diagnostic interview.
B. completion and screening of the application form.
C. reference checking.
D. preliminary interview.

23. In HRM, the purpose of a job application form is to:

A. test applicants' interpersonal skills.
B. inform the applicants about the job responsibilities.
C. inform the applicants about the selection criteria.
D. screen out unqualified applicants.

24. Disclosure of a person's race, color, national origin, or religion should be avoided on an
application form because:
A. such questions should be reserved for the interview time.
B. recording of such information can be proven as discriminatory.
C. it is illegal to address such matters in any circumstance.
D. recruitment ads specify that certain minorities need not apply.

25. Which of the following steps of a selection process is carried out only for those
individuals who are offered the position and the job offer is contingent on the individual
passing this test?
A. Physical examination
B. Diagnostic interview
C. Preliminary interview
D. Reference checking

26. One of the best ways to encourage application form accuracy is to:
A. include a statement that termination could result from inaccuracies.
B. make the applicant comfortable while filling out the form.
C. consider an application for selection only after reference checking.
D. insist that all responses are transcribed from the applicant's resume.

7-4
Chapter 07 - Selecting Employees

27. An employer can refuse to hire on the basis of an applicant's prior arrest and conviction
record, if:
A. probation was granted at some point.
B. a judicial appeal upheld a prior decision.
C. such policy relates to the job at hand.
D. the company prides itself on a perfect record by all employees.

28. To obtain certain information that could otherwise be used to illegally discriminate,
employers encourage voluntary submission of:
A. applicant flow records.
B. declassified disclosures.
C. realistic job previews.
D. personnel requisition forms.

29. Which of the following is NOT characteristic of the preliminary interview?

A. Emphasizes job-related questions
B. It is an exploratory interview
C. Often conducted by HR personnel
D. Usually the longest interview held

30. _____ is a handbook that summarizes a wide variety of commercial tests and also
provides an evaluation of the tests by several experts.
A. Test Evaluation Book
B. Mental Measurements Yearbook
C. Knowledge Measurements Evaluation
D. Employee Selection Procedure

31. _____ tests measure a person's capacity or potential ability to learn and perform a job.
A. Psychomotor
B. Personality
C. Interest
D. Aptitude

7-5
Chapter 07 - Selecting Employees

32. Prior to the EEOC rendering them as irrelevant to actual job performance, general
intelligence tests were among the most frequently used:
A. proficiency tests.
B. psychomotor tests.
C. aptitude tests.
D. interest tests.

33. Perception speed tests measure the ability to:

A. deal with numbers.
B. use words in thinking, planning, and communicating.
C. make correct judgments based on logic.
D. recognize similarities and differences.

34. While hiring people to fill assembly-line jobs, which of the following tests is most likely
to be administered?
A. Perception speed test
B. Verbal-aptitude test
C. Psychomotor test
D. Reasoning test

35. _____ tests are used to differentiate experienced and skilled workers from less
experienced and less skilled workers.
A. Interest
B. Job knowledge
C. Psychomotor
D. Reasoning

36. _____ tests measure how well the applicant can do a sample of the work to be performed.
A. Interest
B. Proficiency
C. Productivity
D. Psychomotor

7-6
Chapter 07 - Selecting Employees

37. A word processing test given to applicants for a secretarial job is an example of a(n)
_____ test.
A. proficiency
B. interest
C. personality
D. polygraph

38. The use of polygraph testing is:

A. a widely permissible means of determining truth.
B. currently prohibited in most employment settings.
C. totally objective since the device interprets the readings.
D. growing in tandem with technological advances.

39. Which of the following tests are based on the assumption that people are more likely to be
successful in jobs they like?
A. Personality tests
B. Proficiency tests
C. Interest tests
D. Polygraph tests

40. The Rorschach inkblot test and the Thematic Apperception Test (TAT) are examples of
which of the following?
A. Personality tests
B. Reasoning tests
C. Interest tests
D. Proficiency tests

41. Which of the following tests is based on a series of cause-and-effect assumptions like
lying causes fear and guilt?
A. Psychomotor tests
B. Thematic Apperception Tests
C. Proficiency tests
D. Polygraph tests

7-7
Chapter 07 - Selecting Employees

42. Advantages of the _____ interview are that it provides the same type of information on all
interviewees and allows systematic coverage of all questions deemed necessary by the
organization.
A. stress
B. structured
C. group
D. unstructured

43. Which type of interview involves the interviewer assuming a hostile and antagonistic
attitude toward the interviewee?
A. Structured interview
B. Unstructured interview
C. Stress interview
D. Panel interview

44. The halo effect occurs when:

A. the interviewer uses only open-ended questions throughout the interview.
B. the candidate being interviewed is overqualified for the job.
C. the interviewer has some preconceived notions about the candidate.
D. the interviewer allows a single prominent characteristic to dominate judgment of all other
traits.

45. The final decision as to which candidate will be hired is usually left to the:
A. manager in the department with the job opening.
B. HR manager.
C. top management.
D. corporate office.

46. How accurately a predictor actually predicts the criterion of job success is called:
A. reliability.
B. validity.
C. usability.
D. adaptability.

7-8
Chapter 07 - Selecting Employees

47. The type of validity in which a test is given to the entire pool of job applicants and
correlated to job performance scores some months later is called:
A. predictive validity.
B. concurrent validity.
C. construct validity.
D. content validity.

48. The type of validity in which a test is given to current employees and correlated to job
performance scores immediately is called:
A. predictive validity.
B. concurrent validity.
C. construct validity.
D. content validity.

49. _____ is a method used to demonstrate reliability which involves administering the test to
a group of employees and later, usually in about two to four weeks, giving the same group the
same test.
A. Parallel forms
B. Split halves
C. Alternative forms
D. Test-retest

50. The _____ rule is a limit used to determine whether or not there are serious discrepancies
in hiring decisions and other employment practices affecting women or minorities.
A. 2/3rds
B. 50/20
C. 4/5ths
D. 80/20

7-9
Chapter 07 - Selecting Employees

Essay Questions

51. What is an applicant flow record?

52. Explain the purpose of a preliminary interview.

53. Discuss the various types of aptitude tests.

54. Write a short note on polygraph tests.

7-10
Chapter 07 - Selecting Employees

55. Discuss the various types of interviews.

56. What are the various problems associated with conducting interviews?

57. Explain the terms validity and reliability with reference to the selection procedure.

7-11
Chapter 07 - Selecting Employees

58. Explain predictive validity and concurrent validity. What are their advantages and
disadvantages?

59. What are the various methods used to demonstrate the reliability of a criterion predictor?

60. Discuss adverse (or disparate) impact.

7-12
Chapter 07 - Selecting Employees

Chapter 07 Selecting Employees Answer Key

True / False Questions

1. (p. 125) The objective of the selection process is to seek and attract attention of qualified
candidates.
FALSE

Difficulty: Medium

2. (p. 126) According to the EEOC and the courts, inquiries about race, color, national origin, or
religion are illegal per se.
FALSE

Difficulty: Medium

7-13
Chapter 07 - Selecting Employees

3. (p. 127) An applicant flow record is required to be filled by all applicants as part of the
selection process.
FALSE

Difficulty: Medium

4. (p. 127) Courts have ruled that an individual's arrest record is a lawful basis for refusal to
hire.
FALSE

Difficulty: Medium

5. (p. 128) Any procedure that is used to make selection decisions is construed to be a test.
TRUE

Difficulty: Medium

6. (p. 128) Psychomotor tests measure the job-related knowledge possessed by the applicant.
FALSE

Difficulty: Easy

7. (p. 128) Reasoning tests measure the ability to visualize objects in space and determine their
relationships.
FALSE

Difficulty: Easy

8. (p. 129) Polygraph tests are widely used today to screen out undesirable job candidates.
FALSE

Difficulty: Medium

7-14
Chapter 07 - Selecting Employees

9. (p. 129) Chemical testing, such as for drugs or AIDS, is not prohibited.
TRUE

Difficulty: Easy

10. (p. 130) People with AIDS and people who test positive for HIV antibodies are protected in
their jobs by the Vocational Rehabilitation Act.
TRUE

Difficulty: Medium

11. (p. 131) Overgeneralizing refers to a problem that the interviewer may allow a single
prominent characteristic to dominate judgment of all other traits.
FALSE

Difficulty: Easy

12. (p. 131) An unstructured interview does not have a predetermined checklist of questions.
TRUE

Difficulty: Easy

13. (p. 132) The Privacy Act of 1974 prevents government agencies from making their
employment records available to other organizations without the consent of the individual
involved.
TRUE

Difficulty: Easy

7-15
Chapter 07 - Selecting Employees

14. (p. 133) The Americans with Disabilities Act stipulates that a physical exam cannot be
conducted until after a job offer has been extended to a job candidate.
TRUE

Difficulty: Medium

15. (p. 134) The validity of a predictor refers to the extent to which a criterion predictor produces
consistent results.
FALSE

Difficulty: Easy

16. (p. 134) A criterion predictor never correlates perfectly with a criterion of job success.
TRUE

Difficulty: Medium

17. (p. 135) Predictive validation is used frequently because it is cost-efficient and fast.
FALSE

Difficulty: Medium

18. (p. 136) One advantage of concurrent validation is that in situations in which either racial or
sexual discrimination has been practiced in the past, minorities and women will be adequately
represented.
FALSE

Difficulty: Medium

7-16
Chapter 07 - Selecting Employees

19. (p. 137) The split halves method used to determine reliability involves administering the test
to a group of employees and later, usually in about two to four weeks, giving the same group
the same test.
FALSE

Difficulty: Easy

20. (p. 138) Adverse impact is a condition that occurs when the selection rate for women and
minorities is less than 80 percent of the selection rate for the majority group in hiring,
promotions, transfers, demotions, or any selection decision.
TRUE

Difficulty: Medium

Multiple Choice Questions

21. (p. 125) Which of the following is a prerequisite to the selection process?
A. Orientation
B. Appraisal
C. Recruitment
D. Exit interview

Difficulty: Easy

22. (p. 126) The first step of the selection process is:
A. the diagnostic interview.
B. completion and screening of the application form.
C. reference checking.
D. preliminary interview.

Difficulty: Easy

7-17
Chapter 07 - Selecting Employees

23. (p. 126) In HRM, the purpose of a job application form is to:
A. test applicants' interpersonal skills.
B. inform the applicants about the job responsibilities.
C. inform the applicants about the selection criteria.
D. screen out unqualified applicants.

Difficulty: Medium

24. (p. 126) Disclosure of a person's race, color, national origin, or religion should be avoided on
an application form because:
A. such questions should be reserved for the interview time.
B. recording of such information can be proven as discriminatory.
C. it is illegal to address such matters in any circumstance.
D. recruitment ads specify that certain minorities need not apply.

Difficulty: Medium

25. (p. 126) Which of the following steps of a selection process is carried out only for those
individuals who are offered the position and the job offer is contingent on the individual
passing this test?
A. Physical examination
B. Diagnostic interview
C. Preliminary interview
D. Reference checking

Difficulty: Easy

26. (p. 126) One of the best ways to encourage application form accuracy is to:
A. include a statement that termination could result from inaccuracies.
B. make the applicant comfortable while filling out the form.
C. consider an application for selection only after reference checking.
D. insist that all responses are transcribed from the applicant's resume.

Difficulty: Medium

7-18
Chapter 07 - Selecting Employees

27. (p. 127) An employer can refuse to hire on the basis of an applicant's prior arrest and
conviction record, if:
A. probation was granted at some point.
B. a judicial appeal upheld a prior decision.
C. such policy relates to the job at hand.
D. the company prides itself on a perfect record by all employees.

Difficulty: Medium

28. (p. 127) To obtain certain information that could otherwise be used to illegally discriminate,
employers encourage voluntary submission of:
A. applicant flow records.
B. declassified disclosures.
C. realistic job previews.
D. personnel requisition forms.

Difficulty: Medium

29. (p. 127) Which of the following is NOT characteristic of the preliminary interview?
A. Emphasizes job-related questions
B. It is an exploratory interview
C. Often conducted by HR personnel
D. Usually the longest interview held

Difficulty: Medium

30. (p. 128) _____ is a handbook that summarizes a wide variety of commercial tests and also
provides an evaluation of the tests by several experts.
A. Test Evaluation Book
B. Mental Measurements Yearbook
C. Knowledge Measurements Evaluation
D. Employee Selection Procedure

Difficulty: Easy

7-19
Chapter 07 - Selecting Employees

31. (p. 128) _____ tests measure a person's capacity or potential ability to learn and perform a
job.
A. Psychomotor
B. Personality
C. Interest
D. Aptitude

Difficulty: Easy

32. (p. 128) Prior to the EEOC rendering them as irrelevant to actual job performance, general
intelligence tests were among the most frequently used:
A. proficiency tests.
B. psychomotor tests.
C. aptitude tests.
D. interest tests.

Difficulty: Medium

33. (p. 128) Perception speed tests measure the ability to:
A. deal with numbers.
B. use words in thinking, planning, and communicating.
C. make correct judgments based on logic.
D. recognize similarities and differences.

Difficulty: Medium

34. (p. 128) While hiring people to fill assembly-line jobs, which of the following tests is most
likely to be administered?
A. Perception speed test
B. Verbal-aptitude test
C. Psychomotor test
D. Reasoning test

Difficulty: Medium

7-20
Chapter 07 - Selecting Employees

35. (p. 128-129) _____ tests are used to differentiate experienced and skilled workers from less
experienced and less skilled workers.
A. Interest
B. Job knowledge
C. Psychomotor
D. Reasoning

Difficulty: Medium

36. (p. 129) _____ tests measure how well the applicant can do a sample of the work to be
performed.
A. Interest
B. Proficiency
C. Productivity
D. Psychomotor

Difficulty: Easy

37. (p. 129) A word processing test given to applicants for a secretarial job is an example of a(n)
_____ test.
A. proficiency
B. interest
C. personality
D. polygraph

Difficulty: Medium

38. (p. 129) The use of polygraph testing is:

A. a widely permissible means of determining truth.
B. currently prohibited in most employment settings.
C. totally objective since the device interprets the readings.
D. growing in tandem with technological advances.

Difficulty: Medium

7-21
Chapter 07 - Selecting Employees

39. (p. 129) Which of the following tests are based on the assumption that people are more likely
to be successful in jobs they like?
A. Personality tests
B. Proficiency tests
C. Interest tests
D. Polygraph tests

Difficulty: Medium

40. (p. 129) The Rorschach inkblot test and the Thematic Apperception Test (TAT) are examples
of which of the following?
A. Personality tests
B. Reasoning tests
C. Interest tests
D. Proficiency tests

Difficulty: Medium

41. (p. 129) Which of the following tests is based on a series of cause-and-effect assumptions
like lying causes fear and guilt?
A. Psychomotor tests
B. Thematic Apperception Tests
C. Proficiency tests
D. Polygraph tests

Difficulty: Medium

42. (p. 131) Advantages of the _____ interview are that it provides the same type of information
on all interviewees and allows systematic coverage of all questions deemed necessary by the
organization.
A. stress
B. structured
C. group
D. unstructured

Difficulty: Easy

7-22
Chapter 07 - Selecting Employees

43. (p. 131) Which type of interview involves the interviewer assuming a hostile and
antagonistic attitude toward the interviewee?
A. Structured interview
B. Unstructured interview
C. Stress interview
D. Panel interview

Difficulty: Easy

44. (p. 131) The halo effect occurs when:

A. the interviewer uses only open-ended questions throughout the interview.
B. the candidate being interviewed is overqualified for the job.
C. the interviewer has some preconceived notions about the candidate.
D. the interviewer allows a single prominent characteristic to dominate judgment of all other
traits.

Difficulty: Easy

45. (p. 133) The final decision as to which candidate will be hired is usually left to the:
A. manager in the department with the job opening.
B. HR manager.
C. top management.
D. corporate office.

Difficulty: Easy

46. (p. 134) How accurately a predictor actually predicts the criterion of job success is called:
A. reliability.
B. validity.
C. usability.
D. adaptability.

Difficulty: Medium

7-23
Chapter 07 - Selecting Employees

47. (p. 135) The type of validity in which a test is given to the entire pool of job applicants and
correlated to job performance scores some months later is called:
A. predictive validity.
B. concurrent validity.
C. construct validity.
D. content validity.

Difficulty: Medium

48. (p. 136) The type of validity in which a test is given to current employees and correlated to
job performance scores immediately is called:
A. predictive validity.
B. concurrent validity.
C. construct validity.
D. content validity.

Difficulty: Medium

49. (p. 137) _____ is a method used to demonstrate reliability which involves administering the
test to a group of employees and later, usually in about two to four weeks, giving the same
group the same test.
A. Parallel forms
B. Split halves
C. Alternative forms
D. Test-retest

Difficulty: Easy

7-24
Chapter 07 - Selecting Employees

50. (p. 138) The _____ rule is a limit used to determine whether or not there are serious
discrepancies in hiring decisions and other employment practices affecting women or
minorities.
A. 2/3rds
B. 50/20
C. 4/5ths
D. 80/20

Difficulty: Medium

Essay Questions

51. (p. 127) What is an applicant flow record?

At the time of completing the application form, the applicant is frequently asked to complete
an applicant flow record. It is a form used by a company to obtain information from a job
applicant that could be used to illegally discriminate. The applicant voluntarily completes this
record. Data and information from the applicant flow record can be used to provide statistical
reports to the EEOC or OFCCP or in defense against charges of discrimination concerning the
employer's recruitment and selection activities.

Difficulty: Medium

52. (p. 127) Explain the purpose of a preliminary interview.

The preliminary interview is used to determine whether the applicant's skills, abilities, and job
preferences match any of the available jobs in the organization, to explain to the applicant the
available jobs and their requirements, and to answer any questions the applicant has about the
available jobs or the employer.

Difficulty: Medium

7-25
Chapter 07 - Selecting Employees

53. (p. 128) Discuss the various types of aptitude tests.

Aptitude tests measure a person's capacity or potential ability to learn and perform a job.
Some of the more frequently used tests measure verbal ability, numerical ability, perceptual
speed, spatial ability, and reasoning ability. Verbal-aptitude tests measure a person's ability to
use words in thinking, planning, and communicating. Numerical tests measure ability to add,
subtract, multiply, and divide. Perception speed tests measure ability to recognize similarities
and differences. Spatial tests measure ability to visualize objects in space and determine their
relationships. Reasoning tests measure ability to analyze oral or written facts and make
correct judgments concerning these facts on the basis of logical implications.

Difficulty: Medium

54. (p. 129) Write a short note on polygraph tests.

The polygraph (lie detector) is a device that records physical changes in the body as the test
subject answers a series of questions. The polygraph records fluctuations in blood pressure,
respiration, and perspiration on a moving roll of graph paper. The polygraph operator makes a
judgment as to whether the subject's response was truthful or deceptive by studying the
physiological measurements recorded on paper.
The Employee Polygraph Protection Act of 1988, with a few exceptions, prohibits employers
from conducting polygraph examinations on all job applicants and most employees. The
major exemptions to the law are as follows: (1) All local, state, and federal employees are
exempt from coverage, although state laws may be passed to restrict the use of polygraphs;
(2) industries with national defense or security contracts are permitted to use polygraphs; (3)
businesses with nuclear power–related contracts with the Department of Energy may use
polygraphs; and (4) businesses and consultants with access to highly classified information
may use polygraphs.

Difficulty: Medium

7-26
Chapter 07 - Selecting Employees

55. (p. 131) Discuss the various types of interviews.

The various types of interviews used by organizations are:

• Structured interview: It is conducted using a predetermined outline that is based on a
thorough job analysis. Advantages are that it provides the same type of information on all
interviewees and allows systematic coverage of all questions deemed necessary by the
organization.
• Unstructured interview: It does not have a predetermined checklist of questions; it uses
open-ended questions. It provides a more relaxed atmosphere.
• Stress interview: It is designed to place the interviewee under pressure. The interviewer
assumes a hostile and antagonistic attitude toward the interviewee. The purpose of this
interview is to detect the highly emotional person.
• Board or panel interviews: Two or more interviewers conduct a single interview with the
applicant. Can involve either structured or unstructured formats.
• Group interviews: Several job applicants are questioned together in a group discussion. Can
involve either structured or unstructured formats.

Difficulty: Medium

56. (p. 131) What are the various problems associated with conducting interviews?

Although interviews have widespread use in selection procedures, they involve a host of
problems. One of the most significant problems is that interviews are subject to the same legal
requirements of validity and reliability as other steps in the selection process. The interviewer
often draws conclusions about the applicant within the first 10 minutes of the interview. If this
occurs, he/she either overlooks or ignores any additional relevant information about the
applicant. Another problem is the halo effect that occurs when the interviewer allows a single
prominent characteristic to dominate judgment of all other traits. Overgeneralizing is another
common problem. An interviewee may not behave exactly the same way on the job as during
the interview. Personal preferences, prejudices, and biases can also cause problems in
conducting employment interviews. Interviewers with biases or prejudices tend to look for
behaviors that conform to their biases. Appearance, social status, dress, race, and gender have
negatively influenced many employment interviews.

Difficulty: Medium

7-27
Chapter 07 - Selecting Employees

57. (p. 134) Explain the terms validity and reliability with reference to the selection procedure.

Validity and reliability are extremely important concepts not only in the selection of new
employees but also in promotion decisions or any other area where selection decisions are
made. A job specification facilitates identifying the factors that can be used to predict
successful performance of the job. These factors are called criterion predictors. Validity refers
to how accurately a criterion predictor predicts the criterion of job success. Reliability refers
to the extent to which a criterion predictor produces consistent results if repeated
measurements are made.

Difficulty: Easy

58. (p. 135-137) Explain predictive validity and concurrent validity. What are their advantages and
disadvantages?

Predictive validity is established by identifying a predictor such as a test, administering the

test to the entire pool of job applicants, and then hiring people to fill the available jobs
without regard to their test scores. At a later date, the test scores are correlated with the
criteria of job success to see whether those people with high test scores performed
substantially better than those with low test scores. Predictive validation is used infrequently
because it is costly and slow. To use this method, a large number of new employees must be
hired at the same time without regard to their test scores.
Concurrent validity is determined by identifying a predictor such as a test, administering the
test to present employees, and correlating the test scores with the present employees'
performance on the job. If an acceptable correlation exists, the test can be used for selection
of future employees. One disadvantage of concurrent validation is that in situations in which
either racial or sexual discrimination has been practiced in the past, minorities and women
will not be adequately represented. Another potential drawback is that among present
employees in a particular job, the poorer performers are more likely to have been discharged
or quit and the best performers have frequently been promoted. Obviously, a correlation
coefficient obtained under these conditions can be misleading.

Difficulty: Hard

7-28
Chapter 07 - Selecting Employees

59. (p. 137) What are the various methods used to demonstrate the reliability of a criterion
predictor?

Three methods can be used to demonstrate the reliability of a criterion predictor. Suppose that
scores on a test are to be used as the criterion predictor.
Test-retest: This involves administering the test to a group of employees and later, usually in
about two to four weeks, giving the same group the same test. Correlation analysis is used to
determine the degree of correlation between the two sets of scores. The higher the correlation
coefficient, the greater is the reliability of the test.
Parallel (or alternative) forms: Under this method two separate but similar forms of a test
would be constructed. The same group of employees would be tested at two different times
using the alternative forms of the test. Correlation analysis is used to determine the degree of
correlation between the two sets of scores. The higher the correlation coefficient, the greater
is the reliability of the test.
Split halves: This is the simplest and easiest method of determining reliability. Under this
method a test is administered to a group of employees. The results of the test are randomly
split into two equal groups. The scores of the two equal groups are correlated. The higher the
degree of correlation, the greater is the reliability.

Difficulty: Medium

60. (p. 138) Discuss adverse (or disparate) impact.

Adverse impact is a condition that occurs when the selection rate for minorities or women is
less than 80 percent of the selection rate for the majority group in hiring, promotions,
transfers, demotions, or other employment decisions.

Difficulty: Medium

7-29
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