Chapter 3

Criteria: Standards for Decision

Making

INP3004/MAN3360

Dr. Steve
 Personnel Psychology

Personnel Psychology psychology of selection,

firing, and promotion decision making
Criterion evaluation standard, decision point
Ex: How do we determine success of training program?
Quantitative: Must type 60 wpm, sell 50 widgets/week
Qualitative: Knowledgeable of subject, enthusiastic, etc.
 Criteria
Types of Criteria:
Conceptual Criteria (Ultimate Criteria)
abstract idea or construct
cannot be measured
Ex: knowledgeable of subject, conscientious, hardworking, etc.
Actual Criteria Measurable factors that
substitute for conceptual criteria
Select actual criterion that comes closest to conceptual criterion
Ex: Knowledge of subject test scores
Ex: Conscientious all assignments turned in on time
Hard criteria units produced, # of errors, absences, etc.
Soft criteria supervisory ratings, self assessment
 Decision Making

Degree to which the actual

Criterion criterion fails to represent
Conceptual Deficiency conceptual criterion
Criterion

Criterion Degree to which the

actual criterion matches
Relevance
the conceptual criterion

Actual Aspect of actual criterion

Criterion Criterion
that is measured but has
Contamination
nothing to do with the
conceptual criterion
- error
- bias
 Criterion Contamination

Bias extent to which actual criterion

consistently measures something other
than the conceptual criterion
Error extent to which actual criterion
is not related to anything known
(random variations)
 Example
Restaurant Manager

Criterion Deficiency: Conceptual Criteria:

Only measure satisfaction highly satisfied customers
of customers who complete complies with govt regulations
surveys satisfied employees

Actual Criteria:
results of customer surveys
# of code violations
ratings by employees
Criterion Contamination:
rater bias
 Criterion Development

When do you need the data and for what decisions?

Proximal Criteria for short term decisions
Ex: Training performance
Distal Criteria for long term decisions
Ex: Job performance

Criteria Developed:
Deductively theory to data
Inductively data to theory
 5 Steps to Criterion Development

1. Job or Needs Analysis

2. Develop measures of actual behavior relative to
expected behavior
3. Identify criterion dimensions underlying
measures (factor analysis)
4. Develop reliable measures to overall factors
5. Determine predictive validity (correlate predictor
with criterion)
 Purpose of Criterion Development

Theoretical Helps us understand a concept

better.
What are the characteristics of good performance?
Practically Use information to make
personnel decisions.
Selecting job applicants
Determining what and who needs to be trained
Determining salaries
 Job Analysis

Job Analysis - Tool for identifying job-related criteria.

Systematic breakdown & description of a job in terms
of:
What is accomplished
How it is accomplished
Knowledge, Skills, & Abilities (KSAs) required to
perform job
Task statements
 Task Statements

What?
To whom or what?
How?
For what purpose?
Example: College Professor:
Presents information to college students by
way of oral presentation to teach course
subject matter.
 Job Analysis
Sources of Information

Subject Matter Experts (SMEs)

Job Incumbents someone currently
performing job
Supervisors to Job Incumbents
individuals who used to perform job
Trained Job Analysts understands
differences among various jobs
 Job Analysis Methods

Interviews ask questions individually or in

groups about activities performed, KSAs needed
Structured Questionnaires present list of
activities and have SME rate them
Direct Observation Observe and take notes
while incumbents work (stay unobtrusive)
Logbooks or Diaries Incumbents record their
work activities
Documentation Manuals, handbooks, training
guides, etc.
 Job vs. Worker Oriented
Job Analyses
Job Oriented Task Analysis
Emphasizes individual tasks performed
(action verbs)
Often used in Human Factors work
Cognitive task analysis focuses on types of
decisions made on the job
May be used to determine function
allocation (what done by machine or by
human)
 Job vs. Worker Oriented
Job Analyses
Worker Oriented
Emphasizes the KSAs needed for the job
Ex: level of intelligence, depth perception,
strength, knowledge of physics, etc.
Tools used:
Position Analysis Questionnaire (PAQ)
Threshold Traits Analysis Linkage Analysis
Dictionary of Occupational Titles (DOT)
published by the Department of Labor
O*NET
 Job Evaluation

Job Evaluation Method for determining

the value of a job within the organization
Makes use of Job Analysis information
What is job position worth (not person)?
Pay too little cant recruit best applicants
Pay too much org. puts self in financial
difficulty
 Fair Wages
Fair wages determined by:
External Equity what are other orgs
paying?
Wage surveys
Internal Equity people at similar jobs
within org receive similar pay (fairness)
 Job Evaluation

Compensable Factors
1. Level of effort e.g., physical or mental
2. Skill required e.g., craftsmanship, art, etc.
3. Responsibility e.g., financial, # of subordinates
4. Working conditions e.g., hazard pay, work
environment
 Equal Pay Act

Equal Pay Act requires that men & women

performing the same job receive equal pay
(other aspects being equal).
Covers private, state, and local federal
employees; NO minimum number of employees
- problem: rarely are 2 jobs equal
Comparable Worth Jobs that are equivalent
or comparable should receive same pay
- Job evaluation used to determine
comparability of jobs.
 How are criteria determined?

Criteria must be:

Appropriate relevant to the job
Stable consistent over time and situation
Practical should be possible to measure
 Types of Criteria
Objective (hard) taken from personnel records
Productivity
Sales
Turnover
Absenteeism
Accidents
Subjective (soft) judgments about worker
performance
Rating scales, assessed by supervisors, peers, subordinates
Dynamic job performance not expected to be stable
over time
Performance expected to increase, accidents decrease