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The FOUNDING of Organizational

Success?
Employ the most Valid & Reliable Assessment
Tools in order to Select the Right People!!!
WHO are the Right People?

The HIGH PERFORMING People!!!

High Performance refers to High Individual Job Performance


Human Resources, Law and Management Department - September 2009

Individual Job Performance


Overall job performance is a two-dimensional construct which
consists of task performance and contextual performance
(Borman & Motowidlo, 1993; Van Scotter & Motowidlo, 1996)
task performance: the degree of fulfilment of the essential
technical activities/duties that differ across jobs the technical
aspects of the job predicted better by mental abilities and extremely
strongly by GMA
contextual performance (organizational citizenship behaviorOCB): the degree of engagement into behaviours supporting the
organizational socio-psychological environment in which the
technical aspects of the job are put forward (personal,
organizational support & conscientious initiative: Coleman &
Borman, 2000) the contextual aspects of the job predicted better
by personality: strongly by conscientiousness & less strongly by
emotional stability
Human Resources, Law and Management Department - September 2009

Job Performance

job performance in the vast majority of the cases is measured


according to supervisor ratings
supervisor ratings in the vast majority of the cases refer only
to task performance
(overall) job performance suppose to refer to both task &
contextual performance but it is widely accepted that
contextual performance is largely underrepresented if present
at all
as a result personality as a predictor of job performance tends
to be underestimated in the literature and especially in the
most recent meta-analyses
be aware that when it comes to behavior prediction, lower
order traits (facets) outscore significantly higher order traits at
the level of the Big 5
Human Resources, Law and Management Department - September 2009

The Founding for Recruiting, Assessing &


Selecting High Performing People?

Job Analysis: the scientific (systematic) study and assembly of all the facts about a
job; that is all information related to the duties, tasks, responsibilities, relationships,
outcomes, and work environment of a particular job including salary and benefits,
working hours and conditions. The results of job analysis are job description and job
(person) specification which are the major constituents of a realistic job preview
job analysis ought to be based upon the previously conducted organizational
analysis which concludes all the different jobs that are needed, including how they are
inter-related, for an organization to fulfill its purpose according to the strategy being
pursued
Job Description is practically the primary conclusion of job analysis in the form of a
detailed written statement of all the required information about a given job
Job (Person) Specification is the primary conclusion with reference to the specific
KSAOs of the right person for the job: which selection/assessment tools to use?
KSAOs are the job-related Knowledge, Skills, Abilities, and Other characteristics that
a person needs to possess for high job performance; typically two major categories
technical and behavioral
Realistic Job Preview is the objective, integrated and comprehensive description of a
job communicated to job applicants; it is the founding of the psychological contract,
boosts organizational commitment and reduces employee turnover
Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


ASSESSMENT CENTERS can be designed to measure many different types of job related skills and abilities, but are
often used to assess interpersonal skills, communication skills, planning and organizing, and analytical skills. The
assessment center typically consists of exercises that reflect job content and types of problems faced on the job. For
example, individuals might be evaluated on their ability to make a sales presentation or on their behavior in a simulated
meeting. In addition to these simulation exercises, assessment centers often include other kinds of tests such as cognitive
ability tests, personality inventories, and job knowledge tests. The assessment center typically uses multiple raters who are
trained to observe, classify, and evaluate behaviors. At the end of the assessment center, the raters meet to make overall
judgments about peoples performance in the center .

Advantages

Have been demonstrated to produce valid


inferences for a number of organizational
outcomes (e.g., promotion rates).
Can reduce business costs by identifying
individuals for hiring, promotion or training
who possess the needed skills and abilities.
May be viewed positively by test takers
who see the close relationship between the
test and the job.
Can provide useful feedback to test takers
regarding needed training and development.
Focus more heavily on behavior
demonstration than simply assessing
characteristics.
Use trained raters.
Are typically less likely to differ in results
by gender and race than other types of tests.

Disadvantages

Can be costly to create and administer.


Require more labor (e.g., assessors, roleplayers, etc.) to administer than most other
methods.
Require more time to administer than most
other methods.
Can be difficult to keep calibrated or
standardized across time and locations.

Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Biographical Data: the content varies widely, and may include such areas as leadership, teamwork skills, specific job
knowledge and specific skills (e.g., knowledge of certain software, specific mechanical tool use), interpersonal skills,
extraversion, creativity, etc. Biographical data typically uses questions about education, training, work experience, and
interests to predict success on the job. Some biographical data instruments also ask about an individuals attitudes, personal
assessments of skills, and personality.

Advantages

Can be administered via paper and

pencil or computerized methods easily


to large numbers.
Can be cost effective to administer.
Have been demonstrated to produce
valid inferences for a number of
organizational outcomes (e.g., turnover,
performance).
Are typically less likely to differ in
results by gender and race than other
types of tests.

Does not require skilled administrators.


Can reduce business costs by identifying
individuals for hiring, promotion or
training who possess the needed skills
and abilities.

Disadvantages
May lead to individuals responding in a
way to create a positive decision
outcome rather than how they really are
(i.e., they may try to positively manage
their impression or even fake their
response).
Do not always provide sufficient
information for developmental feedback
(i.e., individuals cannot change their
past).
Can be time-consuming to develop if
not purchased off-the-shelf.

Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Cognitive ability tests typically use questions or problems to measure ability to
learn quickly, logic, reasoning, reading comprehension and other enduring mental
abilities that are fundamental to success in many different jobs. Cognitive ability
tests assess a persons aptitude or potential to solve job-related problems by
providing information about their mental abilities such as verbal or mathematical
reasoning and perceptual abilities like speed in recognizing letters of the alphabet

Advantages

Have been demonstrated to produce valid


inferences for a number of organizational
outcomes (e.g., performance, success in
training).
Have been demonstrated to predict job
performance particularly for more complex
jobs.
Can be administered via paper and pencil
or computerized methods easily to large
numbers.
Can be cost effective to administer.
Does not typically require skilled
administrators.
Can reduce business costs by identifying
individuals for hiring, promotion or
training who possess the needed skills and
abilities.
Will not be influenced by test taker
attempts to impression manage or fake
responses.

Disadvantages

Are typically more likely to differ in results


by gender and race than other types of tests.
Can be time-consuming to develop if not
purchased off-the-shelf.

Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Integrity tests assess attitudes and experiences related to a
persons honesty, dependability, trustworthiness, reliability,
and pro-social behavior. These tests typically ask direct
questions about previous experiences related to ethics and
integrity OR ask questions about preferences and interests
from which inferences are drawn about future behavior in
these areas. Integrity tests are used to identify individuals
who are likely to engage in inappropriate, dishonest, and
antisocial behavior at work.

Advantages

Have been demonstrated to produce valid


inferences for a number of organizational
outcomes (e.g., performance, inventory
shrinkage difficulties in dealing with
supervision).
Can reduce business costs by identifying
individuals who are less likely to be absent,
or engage in other counterproductive
behavior.
Send the message to test takers that
integrity is an important corporate value.
Are typically less likely to differ in results
by gender and race than other types of tests.
Can be administered via paper and pencil
or computerized methods easily to large
numbers.
Can be cost effective to administer.
Does not require skilled administrators.

Disadvantages

May lead to individuals responding in a


way to create a positive decision outcome
rather than how they really are (i.e., they
may try to positively manage their
impression or even fake their response).
May be disliked by test takers if questions
are intrusive or seen as unrelated to the job.

Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Selection Interviews vary greatly in their content, but are often
used to assess such things as interpersonal skills, communication
skills, and teamwork skills, and can be used to assess job
knowledge. Well-designed interviews typically use a standard set
of questions to evaluate knowledge, skills, abilities, and other
qualities required for the job. The interview is the most
commonly used type of test. Employers generally conduct
interviews either face-to-face or by phone.

Advantages

Are expected and accepted by many job


applicants.
Provide an opportunity for a two-way
exchange of information.
Provide a measure of skills such as oral
communication skills not measured via
paper and pencil or computerized tools.
Have been demonstrated to produce valid
inferences for a number of organizational
outcomes, if properly developed and
administered
Can reduce business costs by identifying
individuals for hiring, promotion or
training who possess the needed skills and
abilities.
Are typically less likely to differ in results
by gender and race than other types of tests.

Disadvantages

May be affected by different kinds of rating


errors and biases by interviewers.
Are often more time-consuming to
administer than paper and pencil or
computerized tools.
May be practically less useful when a large
number of individuals must be evaluated
because of administration time.
Can be costly to train interviewers.
May be difficult to keep interviewers
calibrated and the interview process
standardized.
May lead to individuals responding in a
way to create a positive decision outcome
rather than how they really are (i.e., they
may try to positively manage their
impression or even fake their response).
Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Job knowledge tests typically use multiple choice questions or essay type items to evaluate technical or professional
expertise and knowledge required for specific jobs or professions. Examples of job knowledge tests include tests of basic
accounting principles, A+/Net+ programming, and blueprint reading.
Advantages

Have been demonstrated to produce


valid inferences for a number of

organizational outcomes, such as job


performance.
Can reduce business costs by identifying

individuals for hiring, promotion or


training who possess the needed skills
and abilities.
Are typically less likely to differ in
results by gender and race than other
types of tests.
May be viewed positively by test takers
who see the close relationship between
the test and the job.
Will not be influenced by test taker
attempts to impression manage or fake
responses.
Can provide useful feedback to test
takers regarding needed training and
development.

Disadvantages
May require frequent updates to ensure test
is current with the job.
May be inappropriate for jobs where
knowledge may be obtained via a short
training period.
Can be costly and time-consuming to
develop, unless purchased off-the-shelf.

Human Resources, Law and Management Department - September 2009

10

Types of Employement Tests (APA)


Personality tests most commonly assessed personality traits in work settings are extraversion, conscientiousness, openness to
new experiences, optimism, agreeableness, service orientation, stress tolerance, emotional stability, and initiative or
proactivity. Personality tests typically measure traits related to behavior at work, interpersonal interactions, and satisfaction
with different aspects of work. Personality tests are often used to assess whether individuals have the potential to be
successful in jobs where performance requires a great deal of interpersonal interaction or work in team settings.

Advantages

Have been demonstrated to produce

valid inferences for a number of


organizational outcomes.
Can reduce business costs by

identifying individuals for hiring,


promotion or training who possess the
needed skills and abilities.
Are typically less likely to differ in
results by gender and race than other
types of tests.

Can be administered via paper and


pencil or computerized methods easily
to large numbers.
Can be cost effective to administer.
Does not require skilled administrators.

Disadvantages
May contain questions that do not
appear job related or seem intrusive if
not well developed.
May lead to individuals responding in
a way to create a positive decision
outcome rather than how they really
are (i.e., they may try to positively
manage their impression or even fake
their response).
May be problematic for use in
employee selection if the test is one
used to diagnose medical conditions
(i.e., mental disorders) rather than
simply to assess work-related
personality traits.

Human Resources, Law and Management Department - September 2009

11

The Five Factor Model (FFM) or the Big 5


of Personality: NEO PI-R Test
The NEO PI-R is a measure of the five major domains of
personality as well as the six facets that define each domain. Taken
together, the five domain scales and thirty facet scales of the NEO
PI-R facilitate a comprehensive and detailed assessment of normal
adult personality. The NEO PI-R is recognized internationally as a
gold standard for personality assessment. Today, reputable
developers of personality tests for the occupational market will as a
matter of course publish data on the relationship of their tests with
the five factor model using one form or another of the NEO as the
benchmark. The total amount of recent data from high level
academic journals concerning the NEO PI-R underpins its quality.

Human Resources, Law and Management Department - September 2009

The Five Factor Model (FFM) or the Big 5


of Personality: NEO PI-R Test
Extraversion: quantity and intensity of energy directed outwards into the social world
Warmth: interest in and friendliness towards others
Gregariousness: preference for the company of others
Assertiveness: social ascendancy and forcefulness of expression
Activity: pace of living
Excitement seeking: need for environmental stimulation
Positive Emotion: tendency to experience positive emotions
Openness to Experience: the active seeking and appreciation of experiences for their own sake
Fantasy: receptivity to the inner world of imagination
Aesthetics: appreciation of art and beauty
Feelings: openness to inner feelings and emotions
Actions: openness to new experiences on a practical level
Ideas: intellectual curiosity
Values: readiness to re-examine own values and those of authority figures

Human Resources, Law and Management Department - September 2009

The Five Factor Model (FFM) or the Big 5


of Personality: NEO PI-R Test
Neuroticism (Emotional Stability-R): identifies individuals who are prone to psychological distress
Anxiety: level of free floating anxiety
Angry Hostility: tendency to experience anger and related states such as frustration and bitterness
Depression: tendency to experience feelings of guilt, sadness, despondency and loneliness
Self Consciousness: shyness or social anxiety
Impulsiveness: tendency to act on cravings and urges rather than reining them in and delaying gratification
Vulnerability: general susceptibility to stress
Agreeableness: the kinds of interactions an individual prefers from compassion to tough mindedness
Trust: belief in the sincerity and good intentions of others
Straightforwardness: frankness in expression
Altruism: active concern for the welfare of others
Compliance: response to interpersonal conflict
Modesty: tendency to play down own achievements and be humble.
Tender mindedness: attitude of sympathy for others.
Conscientiousness: degree of organization, persistence, control and motivation in goal directed behaviour
Competence: belief in own self efficacy
Order: personal organization
Dutifulness: emphasis placed on importance of fulfilling moral obligations
Achievement striving: need for personal achievement and sense of direction
Self Discipline: capacity to begin tasks and follow through to completion despite boredom or distractions.
Deliberation: tendency to think things through before acting or speaking.

Human Resources, Law and Management Department - September 2009

Extraversion
(Declines with Age)

Extraverts are more susceptible to rewards and to social attention


Introverts dislike loud noises, large social gatherings and suffer from overstimulation
Advantages of Extraverts
Are better leaders: extraversion is best predictor of leadership, especially leader
emergence
Perform better in jobs emphasizing social skills and social interactions: people
managers, service, sales, etc.
Perform better in jobs that are competitive: real estate agent, lawyer, barber/stylist
Disadvantages of Extraverts
More impulsive: higher levels of absence and accidents, more likely to engage in
risky behavior due to sensation- and excitement-seeking and more likely to have
accidentsat work and elsewhere (higher traffic fatalities)
Less likely to perform well in jobs that require long attention spans or where work is
routinized

Human Resources, Law and Management Department - September 2009

Openness to Experience
(Declines with Age)

Individuals high in openness tend to be curious, imaginative, playful,


nonconforming, artistically inclined, less religious and more politically liberal
Advantages of Open People
Are more creative both scientifically and artistically
Cope better with organizational change
Have higher adaptability
Are more transformational leaders
Disadvantages of Open People
Less rule-abiding, more rebellious: tend to be anti-establishment, antiauthoritarian
Higher levels of counterproductive behaviors and accidents
Lower commitment to their employers
Are not happier or better job performers (in most types of jobs)
Human Resources, Law and Management Department - September 2009

Neurotism
(Declines with Age)
Advantages of Neurotics
More accurate perceptions (sadder but wiser)
Better able to detect threats in environment
Less likely to take unnecessary and foolish risks
Disadvantages of Neurotics
Lower life satisfaction and job satisfaction
Increased levels of anxiety, stress mental and physical illness as well as
mortality
Heightened susceptibility to depression
Linked to hyper-criticality
Lower levels of job performance

Human Resources, Law and Management Department - September 2009

Conscientiousness
(Increases with Age)
Advantages of Conscientious People
Are better job performers probably due to higher self-regulation and engagement into
goal setting
Live relatively longer
Happier in their jobs and lives
Higher leader effectiveness
Commit fewer counterproductive work behaviors
Higher integrity
Disadvantages of Conscientious People
Deal poorly with unplanned change: If operating rules or conditions change,
conscientious individuals struggle
Learn less during initial stages of learning
When combined with low agreeableness, may be interpersonally difficult
Less creative
Human Resources, Law and Management Department - September 2009

Agreableness
(Increases with Age)
Advantages of Agreeable People
Are those people most desired as romantic partners, friends, team members,
etc.
Function well in teams (better followers)
Have fewer work and non-work conflicts
Are less likely to engage in counterproductive work behaviors
Disadvantages of Agreeable People
Less extrinsically successful in their careers
Particularly susceptible to leniency errors
Conflict-avoidant

Human Resources, Law and Management Department - September 2009

Types of Employement Tests (APA)


Work samples & Simulations typically focus on measuring specific
job skills or job knowledge, but can also assess more general skills
such as organizational skill, analytic skills, and interpersonal skills.
Work samples and simulations typically require performance of tasks
that are the same or similar to those performed on the job to assess
their level of skill or competence. For example, work samples might
involve installing a telephone line, creating a document in Word, or
tuning an engine.

Advantages

Have been demonstrated to produce valid


inferences regarding ability to perform the
job.
Can reduce business costs by identifying
individuals for hiring, promotion or
training who possess the needed skills and
abilities.
Are less likely to differ in results by gender
and race than other types of tests (depends
on particular skills being assessed).
May be more accepted by test takers due to
the obvious link between the test and the
job.
Less likely to be influenced by test taker
attempts to impression manage or fake
responses.
Can be used to provide specific
developmental feedback.
Can provide test takers with a realistic
preview of the job and the organization.

Disadvantages

Does not assess aptitude to perform more


complex tasks that may be encountered on
the job.
May not assess the ability to learn new
tasks quickly.
Often not conducive to group
administration.
May require some level of job knowledge
and therefore may be inappropriate for jobs
where knowledge may be obtained via a
short training period.
May be difficult to keep updated.
May be expensive to administer.
May be time consuming to develop and to
administer.

Human Resources, Law and Management Department - September 2009

20

Unstructured vs. Structured Interviews

selection interviews differ primarily with reference to how much structured they are in their
content
in unstructured interviews different candidates are evaluated blindly upon non-previously rated
answers to non-previously standardized questions neither in content, nor in number while the
duration also fluctuates; unfortunately this is the most common type of interviews and in the vast
majority of the cases in the form of a CV-based (biographical) interview, where the candidate is
questioned upon relevant education and/or job experience of the past---it points to the fact that
not any form of job analysis has been conducted and/or concluded
in structured interviews there is standardized content and duration, that is specific questions that
have an array of pre-rated possible answers within a specific time limit; all candidates are
evaluated upon possible pre-rated answers when asked the very same questions within the
same time limit---it points to the fact that some form of job analysis has been conducted and
concluded
obviously unstructured interviews compared with structured ones suffer primarily from inferior
reliability which puts a first low upper limit to its predictive validity with reference to job
performance; secondarily its content which is most probably not based upon a job analysis
further restricts its predictive validity with reference to job performance
Inter-rater (agreement) reliability is 0.37 for unstructured vs. 0.67 for structured interviews
Predictive validity is 0.20 for unstructured vs. 0.56 for structured interviews
Salgado (1999)
Human Resources, Law and Management Department - September 2009

Behavioral vs. Situational


Structured Interviews

behavioral interviews contain questions based upon some form of job analysis which are
behaviorally anchored with reference to how the candidate has behaved in the past, when
faced with the same or similar circumstances; the basic principle is that the best predictor of
future behavior is past behavior
However the latest evidence on personality trait development reveal that personality does
change and at least for some people quite significantly. Thus future behavior might be
strikingly different from past behavior; this fact not only questions the validity of behavioral
interviews but also highlights ethical concerns

situational interviews contain questions also based upon some form of job analysis (usually
employing the Critical Incidents Technique-CIT), but which in contrast are hypothetically
anchored with reference to how the candidate at the best of his/her knowledge up to date
would behave in response to a hypothetical job scenario; the principle here is more in line
with the latest evidence on personality development and thus more valid and ethical
compared with that of behavioral interviews

Predictive validity is 0.51-56 for behavioral vs. 0.43-0.45 for situational structured
interviews while both provide significant incremental validity beyond GMA and personality
testing
Taylor & Small (2002)
Huffcutt et al. (2004)
Human Resources, Law and Management Department - September 2009

The Best Predictors of Job Performance


GMA is by far the best predictor of both Overall &
Task Performance (higher for high complexity jobs)
but conscientiousness & em. stability provide
significant incremental validity
Population Estimation for GMA 0.734 (0.760 for
training performance)
Population Estimation for Conscientiousness
0.332 (0.367) & Emotional Stability 0.100 (0.106)
Population Estimation for all the 3 predictors
combined 0.770 (0.804)
Human Resources, Law and Management Department - September 2009

The Best Predictors of Job Performance


these results are reported in the Schmidt et al. (2008) study and
are based upon mean meta-analytical correlations (both US and
European-Union meta-analyses) corrected for measurement
error both in predictor and the criterion as well as for both direct
and indirect range restriction (GMA: 8 meta-analyses for both job
and training performance; Con: 6 and 3 respectively; ES: 5 and 3
respectively)
due to the inadequacy of the validity data for incorporating
contextual performance, job performance in this study has to be
considered to reflect rather task performance than contextual
performance

Human Resources, Law and Management Department - September 2009

The Best Predictors of Job Performance

Another earlier study of Le, Oh, Shaffer and Schmidt (2007), employing the
population coefficient of GMA for medium complexity jobs drawn from the Hunter,
Schmidt and Le (2006), the population coefficient of structured job interviews
from the meta-analysis of McDaniel et al.1994) and the population coefficient of
conscientiousness from the meta-analysis of Barrick & Mount (1991), provided
an estimation of the combined predictive validity (in terms of job performance) of
all the three predictors which came up to a level of about 0.77
it is important to highlight that the widely known and accepted moderation effect
of job complexity to the relationship of GMA with job performance as well as the
generalizability of the predictive validity of GMA (US meta-analyses) has been
also verified by EU meta-analyses (cf. Salgado et al., 2003a; Salgado et al.,
2003b)
Notable is though the fact that in the EU Salgado et al. (2003b) meta-analysis of
the relationship of GMA with both job and training performance across various
occupations, the highest operational value (0.67: slightly higher than the value
obtained in general for high complexity jobs-0.64) was obtained for the
managerial occupation (note that this value is not corrected, and thus is probably
underestimated, for the downward bias in predictor-job performance relationships
caused by range restriction because this methodology was developed later on).
Human Resources, Law and Management Department - September 2009

Person-Environment Fit
in the Kristof-Brown et al. (2005) meta-analysis
relationships with overall performance were weak (<0.2) and
comparable for Person-Job (0.20), Person-Group (0.19),
and Person-Supervisor fit (0.18), while the relationship with
Person-Organization fit was substantially smaller (.07).
contextual performance was more strongly correlated with
both P-O (0.27) and P-G fit (0.23) but remain at a lowmoderate level
both P-O and P-J fit had comparable strong effects
(concurrent and predictive) on affective outcomes, both preentry such as organizational attraction (0.48 vs. 0.46) and
intent to hire (0.61 vs. 0.66) & post-entry such as job
satisfaction (0.44 vs. 0.56), organizational commitment (0.51
vs. 0.47) and intent to quit (0.35 vs. 0.46)
Human Resources, Law and Management Department - September 2009

Person-Environment Fit
a more recent meta-analysis that of Winfred et
al. (2006) estimated a correlation of P-O Fit with
overall performance at the level of 0.15 which
however was found to be non-generalizable
Legal Concerns are raised by Winfred et al.
(2006) for the cases where selection decisions
are founded upon P-E Fit since the correlation
with overall job performance appears to be very
weak and even non-generalizable
Human Resources, Law and Management Department - September 2009

Job Experience as a Predictor


the meta-analysis of McDaniel, Schmidt & Hunter (1988)
reveals that when job experience is considered only and
strictly in terms of duration of tenure, in the same or a similar
job, its correlation with job performance is considerable only
in the very early career (for very low levels of tenure) while
the general population coefficient is 0.32
higher correlation for jobs that place low levels of cognitive
demands on employees, that is for low complexity jobs (e.g.
administrators & assistants, than for high complexity jobs
(e.g. managers & professionals)---that is 0.39 vs. 0.28
and degrading further later on, up to a point of tenure, where
it falls bellow 0.2; after 9 years of tenure in high complexity
jobs and 12 years for low complexity jobs
Human Resources, Law and Management Department - September 2009

Job Experience as a Predictor

Human Resources, Law and Management Department - September 2009

Training Performance vs. Job Performance

Human Resources, Law and Management Department - September 2009

30

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