Chapter-06 Employee Testing and Selection

The purpose of this chapter is to explain how to use various tools and techniques to select the best candidates for the job. The main topics include the selection process, basic testing techniques, background and reference checks, ethical and legal questions in testing, types of tests, and work samples and simulations.

WHY CAREFUL SELECTION IS IMPORTANT

Selecting the right employees is important for three main reasons: performance, costs, and legal obligations.

Performance First, your own performance always depends in part on your subordinates.

Cost Second, it is important because it’s costly to recruit and hire employees.

Legal Obligations Third, it’s important because of two legal implications of incompetent hiring.

BASIC TESTING CONCEPTS

A test is basically a sample of a person’s behavior. Using a test (or other selection tool) assumes the device is both reliable and valid.

Reliability

Reliability is a test’s first requirement and refers to its consistency:”A reliable test is one that yields consistent scores when a person takes two alternate forms of the test or when he or she takes the same test on two or more different occasions.”

Validity

Validity tells you whether the test is measuring what you think it’s supposed to be measuring.

Test Validity answers the question,”Does this test measure what it’s supposed to measure?” In employment testing, there are two main ways to demonstrate a test’s validity: criterion validity and content validity.

Creterion Validity Demonstrating criterion validity means demonstrating that those who do well on the test also do well on the job, and that those who do poorly on the test do poorly on the job.

Content Validity Employers demonstrate the content validity of a test by showing that the test constitutes a fair sample of the content of the job.

How to Validate a Test

In order for a selection test to be useful, you should be fairly sure test scores relate in a predictable way to performance on the job.

The validation process consists of five steps:

Step 1: Analyze the Job The first step is to analyze the job and write job descriptions and job specifications.

Step 2: Choose the Tests Next, choose tests that you think measure the attributes(predictors, such as mechanical comprehension) important for job success.

Examples of Web Sites Offering Information on Tests or Testing Programs - www.hr-guide.com/data/G371.htm # Provides general information and sources for all types of employment tests. - http://ericae.net/ # Provides technical information on all types of employment and nonecmployment tests - www.ets.org/testcoll # Provides information on over 20,000 tests - www.kaplan.com/ # Information from kaplan test preparation on how various admissions tests work. - www.assessment.biz # One of many firms offering employment tests

Step 3: Administer the Test Next, administer the selected test(s) to employees.

Step 4: Relate Your Test Scores and Criteria The next step is to ascertain if there is a significant relationship between scores(the predictor) and performance(the criterion).

Step 5: Cross-Validate and Revalidate

Content Validation tends to emphasize judgment.

Research Insight: Face Validity Another factor is the obviousness of the link between the test and performing the job(in other words, the tet’s “face validity”).

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

Test takers have rights to privacy and information under the American Psychological Association’s (APA) standard for educational and psychological tests.

Using Tests at Work

Employers don’t use test just to find good employees, but also to screen out bad ones.

Outback Steakhouse Outback is looking for employees who are highly social, meticulous, sympathetic, and adaptable, and uses a test to screen out applicants who don’t fit the Outback culture.

Test Scoring

Computerized and Online Testing

Computerized testing is increasingly replacing conventional paper-and-pencil and manual tests.

TYPES OF TESTS

We can conveniently classify tests according to whether they measure cognitive(mental) abilities, motor and physical abilities, personality and interests, or achievement.

Tests of cognitive Abilities

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. Intelligence is often measured with individually administered tests like the Stanford-Binet Test or the Wechsler Test.

Specific Cognitive Abilities There are also measures of specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability. Psychologists often call such tests aptitude tests.

Tests of Motor and Physical Abilities

motor abilities: finger dexterity, manual dexterity, and reaction time.

physical abilities: static strength(such as lifting weights), dynamic strength(like pull-ups), body coordination(as in jumping rope), and stamina.

Measuring Personality and Interests

Nonperformance is usually the result of personal characteristics, such as attitude, motivation, and especially, temperament.

What Personality Tests Measure Personality tests measure basic aspects of an applicant’s personality, such as introversion, stability, and motivation.

The “Big Five” extravertion, emotional stability/neuroticism, agreeableness, conscientiousness, and openness to experience.

• Neuroticism represents a tendency to exhibit poor emotional adjustment and experience negative effects, such as anxiety, insecurity, and hostility.
• Extraversion represents a tendency to be sociable, assertive, active, and to experience positive effects, such as energy and zeal.
• Openness to experience is the disposition to be imaginative, nonconforming, unconventional, and autonomous.
• Agreeableness is the tendency to be trusting, compliant, caring, and gentle.
• Conscientiousness is comprised of two related facets: achievement and dependability.

extraversion, conscientiousness, and openness to experience were strong predictors of leadership.

Caveats Personality tests are the most difficult tests to evaluate and use.

Effectiveness The difficulties notwithstanding, personality tests can help employers improve screening.

Interest Inventories compare your interests with those of people in various occupations.

Achievement Tests

measure what a person has learned.

WORK SAMPLES AND SIMULATIONS

With work samples, you present examinees with situations representative of the job for which they’re applying, and evaluate their responses.

Work Sampling for Employee Selection

The work sampling technique tries to predict job performance by requiring job candidates to perform one or more samples of job’s basic tasks.

Basic Procedure is to select a sample of several tasks crucial to performing the job, and to then test applicants on them.

Management Assement Centers

Typical simulated exercises include:

• The in-basket
• Leaderless group discussion
• Management games
• Individual presentations
• Objective tests
• The interview

Video-Based Situational Testing

Situational tests require examinees to respond to situations representative of the job.

The Miniature Job Training and Evaluation Approach

Miniature job training and evaluation means training candidates to perform several of the job’s tasks, and then evaluating the candidates’ performance prior to hire.

Realistic Job Previews

Sometimes, a dose of realism makes the best screening tool.

BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS

Background Investigations and Reference Checks

Aims two main reasons: to verify factual information provided by the applicant, and to uncover damaging information such as criminal records and suspended drivers licenses.

Types of Background Checks Most employers at least try to verify an applicant’s current(or former) position and salary with his or her current(or former) employer by phone.

Legal issues: Defamation, Privacy

Supervisor Reluctance

Employer Guidelines In practice, many firms have a policy of not providing any information about former employees except for their dates of employment, last salary, and position titles.

Making Background Checks More Useful

• First, include on the application form a statement for applicants to sign explicitly authorizing a background check.
• Second, since telephone references apparently produce more candid assessments, it’s probably best to rely on telephone references.
• Third, persistence and sensitivity to potential red flags improve results.
• Fourth, use the references offered by the applicant as a source for other references.
• Fifth, try to ask open-ended questions, such as, “How much structure does the applicant need in his/her work?” in order to ge the references to talk more about the candidate.

Using Preemployment Information Services

Numerous firms such as Hirecheck now provide employment screening services(see www.hirecheck.com).

Collecting Background Information

Some suggestions for collecting background information include the following:

1. Check all applicable state laws.
2. Review the impact of federal equal employment laws.
3. Remember the Federal Fair Credit Reporting Act.
4. Do not obtain information that you’re not going to use.
5. Remember that using arrest information will be highly suspect.
6. Avoid blanket policies(such as “we hire no one with a record of workers’ compensation claims”).
7. Use information that is specific and job related.
8. Keep information confidential and up to date.
9. Never authorize an unreasonable investigation.
10. Make sure you always get at least two forms of identification from the applicant.
11. Always require applicants to fill out a job application.
12. Compare the application to the resume.
13. Particularly for executive candidates, include background checks of such things involvement in lawsuits, and of articles about the candidate in local or national newspapers.
14. Separate the tasks of (1) hiring and (2) doing the background check.

The Polygraph and Honesty Testing

The polygraph is a device that measures physiological changes like increased perspiration.

Honesty Testing Programs: What Employers Can Do In practice, detecting dishonest candidates involves not just tests, but a comprehensive antitheft screening procedure:

• Ask blunt questions.
• Listen, rather than talk.
• Do a credit check
• Check all employment and personal references.
• Use paper-and-pencil honesty tests and psychological tests.
• Test for drugs.
• Establish a search-and-seizure policy and conduct searches.

Graphology

Graphology refers to the use of handwriting analysis to determine the writer’s basic personality traits.

Physical Exams

Once the employer extends the person a job offer, a medical exam is often the next step in the selection process.

Substance Abuse Screening

Many employers conduct drug screenings.

Complying with immigration Law

Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening Systems

The applicant tracking systems(ATS) do three things to help companies screen applicants.

First, most employers also use their ATS to “knock out” applicants who do not meet minimum, nonnegotiable job requirements, like submitting to drug tests or holding driver’s licenses.

Second, employers use these advanced ATS to test and screen applicants online.

Third, the newer systems don’t just screen out candidates, but discover “hidden talents”.

SUMMARY

1. In this chapter, we discussed techniques for screening and selecting job candidates; the first was testing.
2. As used by psychologists, the term reliability always means “consistency.” One way to measure reliability is to administer the same (or equivalent) tests the the same people at two different points in time. Or you could focus on internal consistency, comparing the responses to roughly equivalent items on the same test.
3. Test validity answers the question, “What does this test measure?” We discussed criterion validity and content validity. Criterion validity means demonstrating that those who do well on the test do well on the job; content validity is demonstrated by showing that the test constitutes a fair sample of the content of the job.
4. There are many types of personnel tests in use, including intelligence tests, tests of physical skills, tests of achievement, aptitude tests, interest inventories, and personality tests.
5. For a selection test to be useful, scores should be predictably related to performance on the job; you must validate the test. this requires five steps:(1) analyze the job, (2) choose your tests, (3) administer the test, (4) relate test scores and criteria, and (5) cross-validate and validate the test.
6. Under equal rights legislation, and employer may have to prove that its tests are predictive of success or failure on the job. This usually requires a predictive validation study, although other means of validation are often acceptable.
7. Some basic testing guidelines include (a) use tests as supplements, (b) validate the tests for appropriate jobs,(c) analyze all current hiring and promotion standards,(d) beware of certain tests,(e) use a certified psychologist, and (f) maintain good test conditions.
8. The work sampling selection technique is based on the assumption that the best indicator of future performance is past performance. Here you use the applicant’s actual performance on the same (or very similar) job to predict his or her future job performance. The steps are: (a) analyze the applicant’s previous work experience, (b) have experts list component tasks for the open job, (c) select crucial tasks as work sample measures, (d) break down these tasks into steps, (e) test the applicant, and (f) relate the applicant’s work sample score to his or her performance on the job.
9. Management assessment centers are another screening device and expose applicants to a series of real-life exercises. Performance is observed and assessed by experts, who then check their assessments by observing the participants when they are back at their jobs. Examples of “real-life” exercises include a simulated business game, an in-basket exercise, and group discussions.
10. Even though most people prefer not to give bad references, most companies still carry out some sort of reference check on their candidates. These can be useful in raising red flags, and questionnaires can improve the usefulness of the responses you receive.
11. Other selection tools include the polygraph, honesty tests, and graphology. While graphology appears to have little predictive value, paper-and-pencil honesty tests have been used wih success although they must be used with an eye toward the legal and ethical issues involved.