1

Week 5
Principles of HRM

Topic:
Testing and Selection
Why Careful Selection is Important

The Importance of
Selecting the Right
Employees

Costs of Legal
Organizational
Recruiting and Obligations and
Performance
Hiring Liability
 Negligent hiring:

Negligent hiring is a legal claim made against

an employer when there is failure to take
action to prevent damage given the authority
of the employee's position. ...
• The company can be held responsible if
employers are negligent in ensuring the
employee doesn't harm another person
• Hiring and promotion policies
• Background checks
• Documentation
• Regularly performing Background checks
Avoiding Negligent Hiring Claims
• Carefully scrutinize information on employment
applications.
• Get written authorization for reference checks, and
check references.
• Save all records and information about the
applicant.
• Reject applicants for false statements or conviction
records for offenses related to the job.
• Balance the applicant’s privacy rights with others’ “need
to know.”
• Take immediate disciplinary action if problems arise.
Basic Testing Concepts
• Reliability
 Consistency of scores obtained by the same person
when retested with identical or equivalent tests.
 Are test results stable over time?
• Validity
 Indicates whether a test is measuring what it is
supposed to be measuring.
 Does the test actually measure what it is intended to
measure?
Sample Picture Card from Thematic Apperception Test
 The Thematic Apperception Test-TAT
-It is a type of projective test that involves describing ambiguous scenes.
-Popularly known as the "picture interpretation technique,"
-To date, the TAT is one of the most widely researched and clinically used
personality tests.
How the TAT Works: The TAT involves showing people a series of picture cards
depicting a variety of ambiguous characters (that may include men, women, and/or
children), scenes, and situations.
They are then asked to tell as dramatic a story as they can for each picture presented,
including:
 what has led up to the event shown
 what is happening in the scene
 the thoughts and feelings of characters
 the outcome of the story
- complete version of the TAT includes 31 cards
- today, many practitioners only utilize between 5 and 12 cards
 Types of Validity

Test
Validit
y

Criterion Content
Validity Validity

Face
Validit
y
•Construct validity: Does the test measure the
concept that it’s intended to measure? Construct
validity is about ensuring that the method of
measurement matches the construct you want to
measure.
•E.g. your questionnaire to diagnose depression
measures the construct of depression? Or the
respondent’s mood, self-esteem, or some other
construct?)
•Content validity: Is the test fully representative of
what it aims to measure? (Content validity assesses
whether a test is representative of all aspects of the
construct.)
•Face validity: Does the content of the test appear to be
suitable to its aims? (Face validity considers how suitable the
content of a test seems to be on the surface. It’s similar to
content validity, but face validity is a more informal and
subjective assessment.)

•Criterion validity: Do the results correspond to a different test

of the same thing?(Criterion validity evaluates how closely the
results of your test correspond to the results of a different test.)
• you calculate the correlation between the results of your
measurement and the results of the criterion measurement. If
there is a high correlation, this gives a good indication that
your test is measuring what it intends to measure.
How to Validate a Test

Steps in Test Validation

1 Analyze the Job: predictors (KSAOs etc) and criteria

(standards)
2 Choose the Tests: test battery or single test

3 Administer the Tests: concurrent or predictive validation

Relate Your Test Scores and Criteria: scores versus

4
actual performance

5
Cross-Validate and Revalidate: repeat Steps 3 and 4
with a different sample
1- Analyze job, write job description& specification,, aim is to identify
KSAOs predicting success on job, and also standards of success called
criteria (production criteria, personnel data-absenteeism, tenure, worker-
performance criteria)
2- Employers usually base this choice on experience, previous research, and
“best guesses.” They usually don’t start with just one test. Instead, they
choose several tests and combine them into a test battery. The test battery
aims to measure an array of possible predictors, such as aggressiveness,
extroversion, and numerical ability
3- 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
-Predictive validation is the second and more dependable way to validate a
test. Here you administer the test to applicants before you hire them, then
hire these applicants using only existing selection techniques, not the results
of the new tests. After they’ve been on the job for some time, measure their
performance and compare it to their earlier test scores.
4-Expectancy chart A graph showing the relationship between test scores
and job performance for a group of people.
 Testing Program Guidelines

1. Use tests as supplements.

2. Validate the tests.
3. Monitor your testing/selection program.
4. Keep accurate records.
5. Use a certified psychologist.
6. Manage test conditions.
7. Revalidate periodically.
Test Takers’ Individual Rights and
Test Security
• Under the APA’s standard for educational and
psychological tests, test takers have the
right:
 To privacy and information.
 To the confidentiality of test results.
 To informed consent regarding use of these
results.
 To expect that only people qualified to interpret the
scores will have access to them.
 To expect the test is fair to all.
6–12
 Legal Privacy Issues

• Common law provides employees some protection against

disclosing information about them to people outside the
company.
• Make sure you understand the need to keep employees’
information confidential.
Legal Privacy Issues
• Defamation
 Libeling or slandering of employees or former
employees by an employer.
• Avoiding Employee Defamation Suits
1. Train supervisors regarding the importance of
employee confidentiality.
2. Adopt a “need to know” policy.
3. Disclose procedures impacting confidentially of
information to employees.
Using Tests at Work
• Major Types of Tests
 Basic skills tests

 Job skills tests

 Psychological tests

• Why Use Testing?

 Increased work demands = more testing

 Screen out bad or dishonest employees

 Reduce turnover by personality profiling
 (work demands- skills requirements, training, pay)

6–15
Computerized and Online Testing
• Online tests
 Telephone prescreening
 Offline computer tests
 Virtual “inbox” tests
 Online problem-solving tests
• Types of Tests
 Specialized work sample tests
 Numerical ability tests
 Reading comprehension tests
 Clerical comparing and checking tests
 Virtual inbox-test: An in-tray exercise is a simulation used to assess the aptitude
of potential employees as part of the employment selection process.
 Types of Tests

What Tests
Measure

Cognitive Motor and Personality

(Mental) Physical and Achievement
Abilities Abilities Interests
1. Cognitive tests include tests of general reasoning ability (intelligence) and
tests of specific mental abilities like memory and inductive reasoning.
• inTelligenCe TeSTS Intelligence (IQ) tests are tests of general intellectual
abilities. They measure not a single trait but rather a range of abilities,
including memory, vocabulary, verbal fluency, and numerical ability.
• SpeCiFiC CogniTiVe AbiliTieS There are also measures of specific
mental abilities, such as 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.
2. Tests of Motor and Physical Abilities
• motor abilities, such as finger dexterity, manual dexterity, and (if hiring
pilots) reaction time.
• Some Tests measures the speed and accuracy of simple judgment as well as
the speed of finger, hand, and arm movements.
• Tests of physical abilities may also be required. These include static
strength (such as lifting weights), dynamic strength (pull-ups), body
coordination (jumping rope), and stamina
3.Personality and Interest:
• Personality tests measure basic aspects of an applicant’s personality, such as
introversion, stability, and motivation.
• Industrial psychologists often focus on the “big five” personality dimensions:
• a. Neuroticism represents a tendency to exhibit poor emotional adjustment and
experience negative effects, such as anxiety, insecurity, and hostility.
• b. Extraversion represents a tendency to be sociable, assertive, active, and to
experience positive effects, such as energy and zeal.
• c. Openness to experience is the disposition to be imaginative, nonconforming,
unconventional, and autonomous.
• d. Agreeableness is the tendency to be trusting, compliant, caring, and gentle.
• e. Conscientiousness is comprised of two related facets: achievement and
dependability.
• available online, the Myers-Briggs test provides a personality type classification
useful for decisions such as career selection and planning
• inTereST inVenTorieS
• compare one’s interests with those of people in various occupations already like
accounting or engineering.
• to determine the preferred occupation for the individual (likely high-fit
occupations.)
• The assumption is that someone will do better in occupations in which he or she
is interested.
4. Achievement Tests
• Achievement tests measure what someone has learned.
• Most of the tests you take in school are achievement
tests. They measure your “job knowledge” in areas like
economics, marketing, or human resources.
• Achievement tests are also popular at work.
 Sample Personality Test Items

Source: Elaine Pulakos, Selection

Assessment Methods, SHRM Foundation,
2005, p. 9.
 The “Big Five”

Extraversion

Emotional Stability/
Conscientiousness
Neuroticism

Openness to
Agreeableness
Experience
 Work Samples and Simulations

Measuring Work
Performance Directly

Miniature
Management Video-Based
Work Job Training
Assessment Situational
Samples and
Centers Testing
Evaluation
1.Using work samples:
• The work sampling technique tries to predict job
performance by requiring job candidates to perform one or
more samples of the job’s tasks. For example, work
samples for a cashier may include operating a cash register
and counting money.
• The basic procedure is to select a sample of several tasks
crucial to performing the job, and then to test applicants
on them.74 An observer monitors performance on each
task, and indicates on a checklist how well the applicant
performs
2. Management Assessment Centers
A management assessment center 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 candidate’s leadership potential.
●● The in-basket. The candidate gets reports, memos, notes of incoming phone
calls, e-mails, and other materials collected in the actual/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 review the candidate’s efforts.
●● Leaderless group discussion. Trainers give a leaderless group a discussion
question& tell members to arrive at a group decision. Each group member is rated
on interpersonal skills, acceptance by the group, leadership ability, & individual
influence.
●● Management games. Participants solve realistic problems as members of
simulated companies competing in a marketplace.
●● Individual oral presentations. communication skills and persuasiveness.
●● Testing: include tests of personality, mental ability, interests, and achievements.
●● The interview. with a trainer to assess interests, past performance, & motivation.
3. video-based situational testing:
• situational test: A test that requires examinees to respond to
situations representative of the job.
• video-based simulation: A situational test in which examinees
respond to video simulations of realistic job situations.. i.e., several
online or computer video situations are given each followed by one
or more multiple-choice questions.
4.Miniature job-training & evaluation:
• Miniature job training and evaluation involves training
candidates to perform several of the job’s tasks, and then
evaluating their performance prior to hire.
• 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. Like work sampling, miniature job
training& evaluation tests applicants with actual samples of the job
 Background Investigations and
Reference Checks
• Investigations and Checks
 Reference checks
 Background employment checks
 Criminal records
 Driving records
 Credit checks
• Why?
 To verify factual information provided by applicants.
 To uncover damaging information.
Background Investigations and
Reference Checks (cont’d)

Former Employers

Current Supervisors

Sources of Commercial Credit

Rating Companies
Information

Written References

Social Networking Sites

1. Former employers: asking current or former
employer the position and salary of candidate
2. Current/previous supervisor: asking person’s
motivation, technical competence, ability to
work in groups
3. Commercial credit rating firms: information
about indebtedness, reputation, character,
lifestyle, credit standing
4. References
5. Social networking sites
Limitations on Background Investigations
and Reference Checks

Legal
Issues:
Defamation

Background
Legal
Employer Investigations
Issues:
Guidelines and
Reference Checks Privacy

Supervisor

Reluctance
1. EEO laws
2. Federal and state laws
3. Criminal background information may be
flawed
Using Preemployment Information Services

Acquisition and Use of Background Information

1 Disclosure to and authorization by

applicant/employee
2 Employer certification to reporting
agency
3 Providing copies of reports to
applicant/employee
4 Notice of adverse action to applicant/employee
Honesty Testing Programs:
What Employers Can Do
• Antitheft Screening Procedure:
 Ask blunt questions.
 Listen, rather than talk.
 Do a credit check, and get motor vehicle reports.
 Check all employment and personal references.
 Use paper-and-pencil honesty tests and
psychological tests. (i.e. written tests)
 Test for drugs.
 Establish a search-and-seizure policy and conduct
searches. (get sign on: “All lockers, desks, and similar property remain the
property of the company and may be inspected routinely.” )
 Watch tell-tale body signals
Making Background Checks More Useful
1. Include on the application form a statement for
applicants to sign explicitly authorizing a
background check.
2. Use telephone references if possible.
3. Be persistent in obtaining information.
4. Use references provided by the candidate as
a source for other references.
5. Ask open-ended questions to elicit more
information from references.
6. Compare person to their resume’
Physical Examination
• Reasons for preemployment medical
examinations:
 To verify that the applicant meets the physical
requirements of the position.
 To discover any medical limitations to be taken into
account in placing the applicant.
 To establish a record and baseline of the applicant’s
health for future insurance or compensation claims.
 To reduce absenteeism and accidents.
 To detect communicable diseases that may be
unknown to the applicant. (e.g. HIV, hepatitis A, B
and C, measles, salmonella, measles, and blood-borne
illnesses)
 Types of Screening (Drug/Substance Abuse)

 Before formal hiring

 After a work accident
 Presence of obvious
behavioral symptoms
 Random or periodic basis
 Transfer or promotion to
new position
Improving Productivity Through HRIS: Comprehensive
Automated Applicant Tracking and Screening Systems

Benefits of
Applicant Tracking
Systems

Can match
“Knock out” Allow employers
“hidden talents”
applicants who to extensively test
of applicants to
do not meet job and screen
available
requirements applicants online
openings