Employee Testing And Selection

中国经济管理大学 MBA公益课堂

（加里·德斯勒）

Employee Testing And Selection

1

Employee Testing And Selection

Lecture Outline

Strategic Overview

Why Careful Selection is Important

Basic Testing Concepts

Reliability

Validity

Evidence-Based HR:  How to Validate a Test

Test Takers’ Individual Rights and Test Security

How Do Employers Use Tests at Work?

Computerized & Online Testing

Types of Tests

Tests of Cognitive Abilities

Tests of Motor and Physical Abilities

Measuring Personality and Interests

Achievement Tests

Work Samples and Simulations

Using Work Sampling for Employee Selection    

Management Assessment Centers

Situational Testing/Video-Based Situational Testing

The Miniature Job Training and Evaluation Approach

Realistic Job Preview

HR in Practice:  Testing Techniques for Managers

Background Investigations and Other Selection Methods

Why Perform Background Investigations and Reference Checks?

How to Check a Candidate’s Background

      Using Pre-employment Information Services

The Polygraph and Honesty Testing

Graphology

Physical Exams

Substance Abuse Screening

Complying with Immigration Law 

Improving Productivity Through HRIS:  Using     Automated Applicant Tracking &  Screening Systems

In Brief:  This chapter gives an overview of the selection process, testing concepts, types of tests, and selection techniques.  It also addresses legal and ethical questions surrounding the area of testing and selection.

Interesting Issues:  Reference checking is part of the care an employer must take to ensure that the potential employee will not pose a threat to current employees or customers. Employers who fail to exercise “due diligence” in checking a job candidate’s background may find themselves legally liable if the candidate is hired and subsequently uses the job to commit a crime. Liability may even extend to offenses that occur outside of work time.

ANNOTATED OUTLINE

I.Why Careful Selection Is Important

Slecting the right employees is important for three main reasons:  1) employees with the right skills and attributes will perform more effectively; 2) the cost of making a wrong hire can become exhorbitant considering the time and money invested in the selection and training process; and  3) the legal implications of incompetent or negligent hiring. 

II.Basic Testing Concepts

A.Reliability refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests.

B.Validity refers to evidence that performance on a test is a valid predictor of subsequent performance on the job.

1.Criterion Validity shows that scores on the test (predictors) are related to job performance.

2.Content Validity shows that the test contains a fair sample of the tasks and skills actually needed for the job in question.

Teaching Tip: The difference between reliability and validity is sometimes difficult for students to understand. Explain that if 100 accident-prone, careless applicants took the same test and scored well on it, the test would be reliable because the results are consistent. However, if the purpose of the test was to identify safety-conscious applicants, it would not be valid as a test because it does not predict good safety performance on the job, the very thing it was intended to measure.

C.  Evidence-Based HR:  How to Validate a Test

     1.Analyze the Job and write job descriptions and job specifications.

     2.Choose the Tests that measure the attributes (predictors) important for job success.

     3.Administer the Test selected to old or new employees for concurrent and predictive validation.

     4.Relate Test Scores and Criteria through a correlation analysis, which shows the degree of statistical relationship between (1) scores on the test and (2) job performance.

     5.Cross-validate and Revalidate by performing Steps 3 and 4 on a new sample of employees. Testing Guidelines: 1) use tests as supplements; 2) validate the tests; 3) analyze all your current hiring and promotion standards; 4) keep accurate records; 5) begin your validation program now; 6) use a certified psychologist; and 7) test conditions are important.

D.  Test Takers’ Individual Rights and Test Security – Test takers have certain rights to privacy and information under the American Psychological Association’s (APA) standard for educational and psychological tests.

1.Legal Privacy Issues – Supreme Court decisions provide protection against the disclosure of employee information to people outside the company. Organizations should train supervisors regarding confidentiality and adopt a “need to know” policy to protect information. Disclosure of procedures may also limit liability.

The New Workforce:  Gender Issues in Testing.  Employers using selectiion testing should realize that test results may be distorted by gender.

Know Your Employment Law:  The Issue of Privacy.  In addition to the APA’s test privacy and security standard, certain other protections regarding an employee’s right to privacy are embedded in U.S. law.   Guidelines for employers to follow include: 1) training supervisors regarding the importance of employee confidentiality; 2) adopt a "need to know" policy;" and 3) disclose procedures.

E.  Using Tests at Work – Various types of tests are widely used by employers today, including those for basic skills, job skills, and psychological measurement.

1. Test Scoring – may be automated and done by the employer, or professionally scored and interpreted by psychologists outside the firm. 

F.Computer and Online Testing – is increasingly replacing pencil-and-paper and manual tests. 

ØNOTESEducational Materials to Use

III.Types of Tests

A.Tests of Cognitive Abilities – Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning.

     1.Intelligence Tests are tests of general intellectual abilities ranging from memory, vocabulary, and verbal fluency to numerical ability.

     2.Specific Cognitive Abilities (aptitude) include inductive and deductive reasoning, verbal comprehension, memory, and numerical ability.

B.Tests of Motor and Physical Abilities – Employers may use various tests to measure such motor abilities as finger dexterity, manual dexterity, and reaction time.  They  may also want to measure such physical abilities as static strength, dynamic strength, body coordination, and stamina.

C.Measuring Personality and Interests – can be used to assess personal characteristics as attitude, motivation, and temperament. (See Figure 6-6)

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

2.The "Big Five" – Industrial psychologists emphasize five personality dimensions as they apply to personnel testing: extraversion, emotional stability, agreeableness, conscientiousness, and openness to experience.  

3.Caveats – Personality tests are the most difficult tests to evaluate and use. Recent court decisions indicated that the Minnesota Multiphasic Personality Inventory (MMPI) is a medical test because it can screen out applicants with psychological impairment, and that its use before an employment offer is made is therefore a violation of ADA.

4.Interest Inventories compare one’s interests with those of people in various occupations.

5.Achievement Tests – measure what a person has learned.

ØNOTESEducational Materials to Use

IV.Work Samples and Simulations

A.  Using Work Sampling for Employee Selection

     1.Rationale for Work Sampling – Work sampling technique measures how a candidate actually performs some of the job’s basic tasks, making it harder for applicants to fake answers. This method tends to be fairer and exhibit better validity than tests designed to predict performance.

     2.Developing a Work Sampling Procedure – The basic procedure is to choose several tasks crucial to performing the job in question and to test applicants on those identified tasks.

B.  Management Assessment Centers 

Provide simulations in which candidates perform realistic management tasks, under the observation of experts who appraise each candidate’s potential. Simulated exercises include in-basket, leaderless group discussion, management games, individual presentations, objective tests, and interviews.

1. Effectiveness – Most experts view assessment centers as effective for selecting and promoting management candidates, despite the extra cost to develop the centers.

C.Situational Testing and Video-Based Situational Testing typically present the candidate with several scenarios, each followed by a multiple-choice question.

D.The Miniature Job Training and Evaluation Approach involves training candidates to perform a sample of job tasks, and evaluating their performance.

E.Realistic Job Previews – Being explicit about work schedules, preferences, and other job standards at the point of interview can help reduce turnover later.

When You’re on Your Own:  HR for Line Managers and Entrepreneurs.  Employee Testing and Selection – In many firms, the HR department does little more than preliminary prescreening and followup with background checks, drug, and physical exams.  Managers who want to screen some of their own job applicants more formally can devise and use screening tools with obvious face validity.  Steps should be taken to keep within the guidelines discussed in this chapter.  There are a number of tools available that are easy to administer.

V.Background Investigations and Other Selection Techniques

A.Why Perform Background Investigations and Reference Checks? – Most employers check and verify an applicant’s background information and references, including driving record, check for criminal charges or convictions, and credit check.

1.Aims – The main reasons for conducting investigations into an applicant’s background are to verify factual information and to uncover damaging information to help prevent losses.

2.Types of Background Checks – Typically the applicant’s current and/or former position and salary are verified. Commercial credit rating companies and other services can provide information about credit standing, criminal, employment, and educational history. Employers often check social networking site postings online. 

3.Effectiveness – Reference letters are not viewed as very useful. Fewer than half of HR managers state that they were able to obtain adequate information about candidates.

4.Legal Issues: Defamation – Laws (like the Fair Credit Reporting Act of 1970) increase the likelihood that rejected applicants will have access to the background information. The rejected applicant has various legal remedies, including the right to sue for defamation.

5.Legal Issues: Privacy – Truth is not always a defense. Employees can sue employers for disclosing true but embarrassing private facts to those without a need to know.  

6.Supervisor Reluctance – Rather than damage a former employee’s chance for a job, supervisors may sometimes give  good references.

7.Employer Guidelines – Defensible reference policies include having only authorized managers provide information about employees. Some employers will only provide dates of employment, salary, and position title to reference seekers. 

8.Making Background Checks More Useful – Employers should: include on their application forms a statement for applicants to sign, explicitly authorizing a background check; rely more on telephone references than written ones; ask open-ended questions, use each reference as a source for another and watch for “red flags.”  An example of a reference checking form is illustrated in Figure 6-8.

B.How to Check a Candidate’s Background – 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, assuming they cleared doing so with the candidate.

C.Using Preemployment Information Services – Various federal and state laws govern how employers acquire and use applicants' and employees' background information.  Compliance involves four steps: 1) Disclosure and authorization; 2) Certification; 3) Providing copies of the reports; and 4) Notice after adverse action.

D.  The Polygraph and Honesty Testing 

A polygraph (lie detector) is a device that measures physiological changes like increased perspiration.  Current law prevents most employers engaged in interstate commerce from using these tests for preemployment screening or during the course of employment. Local, state, and federal government employers can continue to use the tests.

     1.Paper-and-Pencil Tests – Paper-and-pencil honesty tests are psychological tests designed to predict job applicants’ proneness to dishonesty and other forms of counter-productive behavior.

     2.What Employers Can Do – Employers can: ask blunt questions; listen, rather than talk; ask for a credit check; check all references; consider paper-and-pencil honesty tests and psychological tests as a part of their honesty-screening program; test for drugs; establish a search-and-seizure policy; and conduct searches.

E.Graphology (handwriting analysis) assumes that handwriting reflects basic 

personality tests.

F.Physical Exams – Once an offer is made and the person is hired, a 

medical exam is usually the next step in the selection process.

ØNOTESEducational Materials to Use

Substance Abuse Screening – Because drug abuse is a serious problem for employers, it is common practice for most employers to conduct drug screening just before employees are formally hired.

1.Ethical Issues – Because drug testing indicates only the presence or absence of drugs, it can’t measure the level of impairment or addiction. Some argue that  the testing is therefore not justifiable if workplace safety is the motivator for using tests.

2.Legal Issues – Former drug users may be protected under ADA. Privacy rights are also often cited.

G.Complying with Immigration Law – Under the Immigration Reform and Control Act of 1986, employees hired in the U.S. have to prove they are eligible to work in the U.S.  Immigrants face increasing difficulty in entering the U.S. Figure 6-10 outlines procedures to comply with immigration laws.

1. Proof – Restrictions on hiring undocumented workers have tightened. Employers should be careful to obtain and verify documents. 

2.   Discrimination – The I-9 Employment Eligibility Verification form must not be used to discriminate based on race or country of national origin.

H.   Improving Productivity through HRIS: Automated Applicant Tracking Systems and Applicant Screening - These systems are an example of technology use in HR.  These systems help companies screen applicants in three ways: 1)"Knock out" applicants who do not meet minimum, non-negotiable job requirements; 2) Test and screen applicants online including Web-based skills testing, cognitive skills testing, and psychological testing; and 3) discover "hidden talents" by identifying talents in the candidate pool that lend themselves to job matches at the company that the applicant didn't know existed when he applied. Minimum functionality requirements of ATS are discussed here. Figure 6-11 tells what to look for in an ATS system.

ØNOTESEducational Materials to Use

DISCUSSION QUESTIONS

1.What is the difference between reliability and validity?  In what respects are they similar?  Reliability is the consistency of scores obtained by the same persons when retested with identical tests or with an equivalent form of a test.  It is a measure of internal consistency of the instrument.  Validity is the degree to which a test measures what it is purported to measure.  It is a measure of external consistency.  They are similar in that both are concerned with aspects of consistency of the instrument, and that reliability is a necessary condition for validity.

2.Explain how you would go about validating a test.  How can this information be useful to a manager?  The validation process consists of five steps:  job analysis, selecting a test, administering a test, relating the test scores and the criteria, and cross validation and revalidation.  Using valid selection devices will enable the manager to develop objective information in the selection process and should result in more effective selection decisions.  

3.Explain why you think a certified psychologist who is specially trained in test construction should (or should not) always be used by a small business that needs a test battery.  Due to the complex and legal nature of this activity, the use of a certified psychologist may be the only safe way to accomplish your objectives.  However, because of the high salary and limited job scope of such a specialist, a definite drawback to this approach is the cost involved.  Perhaps more "direct" tests can be developed which require less sophistication:  motor and physical abilities tests (many state employment agencies provide this service), on-job knowledge tests, and work sampling.   This chapter also presents some alternative testing tools that are relatively easy to administer and low in cost and that are reasonable choices for small employers to use.

4.Give some examples of how interest inventories could be used to improve employee selection.  In doing so, suggest several examples of occupational interests that you believe might predict success in various occupations including college professor, accountant, and computer programmer.  Interest inventories can improve employee selection by identifying individuals with similar interests to those reported by a substantial percentage of successful incumbents in an occupation.  This should clearly increase the likelihood that the applicants will be successful in their new jobs.  Interests that one might expect:  accountant: math, reading, music; college professor:  public speaking, teaching, counseling;  computer programmer:  math, music, computers.

5.Why is it important to conduct pre-employment background investigations?  How would you go about doing so?  Past behavior is the best predictor of future behavior.  It is important to gain as much information as possible about past behavior to understand what kinds of behavior one can expect in the future.  Knowledge about attendance problems, insubordination issues, theft, or other behavioral problems can certainly help one avoid hiring someone who is likely to repeat those behaviors.  The section on background investigations and reference checks has some excellent guidelines for background checks.

6.Explain how you would get around the problem of former employers being unwilling to give bad references on their former employees. Since many companies have strict policies regarding the release of information about former employees, it may not be possible to get information at all, good or bad.  However, conducting a thorough reference audit by contacting at least two superiors, two peers, and two subordinates will help increase the chance that you will find someone who is willing to give you the information you need.  Also, making the contacts by phone rather than in writing will increase their belief that the information may not be traced back to them.  Using the additional technique of asking references for the name of someone else who might be familiar with the applicant's performance will also increase the possibility of getting more information. 

7.   How can employers protect themselves against negligent hiring claims?  There is a list of ways employers can protect themselves against negligent hiring claims discussed in the section on why careful selection is important at the beginning of the chapter.

INDIVIDUAL AND GROUP ACTIVITIES

1.Write a short essay discussing some of the ethical and legal considerations in testing.  State and federal laws, EEOC  guidelines, and court decisions require that you must be able to prove that your tests are related to success or failure on the job and that they are not having an adverse impact on members of a protected group.  Test takers also have certain basic rights to privacy and information.  The test taker also has the right to expect that the test is equally fair to all test takers. 

2.Working individually or in groups, develop a list of selection techniques that you would suggest your dean use to hire the next HR professor at your school.  Also, explain why you chose each selection technique.  The students should use the selection information presented in the chapter to list their selection techniques of choice with their supporting rationale.

3.Working individually or in groups, contact the publisher of a standardized test such as the Scholastic Assessment Test and obtain from them written information regarding the test's validity and reliability.  Present a short report in class discussing what the test is supposed to measure and the degree to which you think the test does what it is supposed to do, based on the reported validity and reliability scores.  Encourage students to contact different sources; it may be a good idea to have a sign-up sheet so that no two students or groups are gathering information on the same instruments.  Students should be able to clearly relate validity and reliability scores to effectiveness.

4.The HRCI "Test Specifications" lists the knowledge someone studying for the HRCI certification exam needs to know in each area of human resource management (such as in Strategic Management, Workforce Planning, and Human Resource Development).  In groups of 4-5 students, do four things: (1) review that appendix now; (2) identify the material in this chapter that relates to the required knowledge the appendix lists;  (3) write four multiple-choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team's questions in front of the class, so the students on other teams can take each other's exam questions.  Material included in this chapter that relates to the HRCI certification exam includes establishing and implementing selection procedures of testing; reference and background checking; post-offer employment activities; knowledge of reliability and validity of selection tests/tools/methods; and use and interpretation of selection tests.

Sample multiple-choice questions: 

1.Criterion-Related Validity:

a.is a test's first major requirement and refers to its consistency

b.demonstrates that those who do well on the test also do well on the job (correct answer)

c.shows that the test constitutes a fair sample of the content of the job

d.none of the above

2.Test Reliability:

a.  is a test's first major requirement and refers to its consistency (correct answer)

b.  demonstrates that those who do well on the test also do well on the job

c.shows that the test constitutes a fair sample of the content of the job

d.none of the above

3.Tests that measure general reasoning ability and mental abilities are called:

a.  Personality and Interest Tests

b. Tests of Motor and Physical Abilities

c. Tests of Cognitive Abilities (correct answer)

d. Achievement Tests

4.   How employers acquire and use applicants' background information is governed by the:

a.ADA

b.Fair Credit Reporting Act (correct answer)

c.Federal Rehabilitation Act of 1973

d.Immigration Reform and Control Act of 1986

EXPERIENTIAL EXERCISES & CASES

Experiential Exercise: A Test for a Reservation Clerk

This exercise gives the students the opportunity to practice designing a test to measure one specific ability for applicants.

Application Case:  Where's My Czar?

1.What should this position’s job description look like?  Students should list the types of activities, responsibilities, and qualifications that they believe should be included.

2.What are the ideal job specifications for the person in this position?  Students should list (and be ready to defend) the specifications that they believe would be needed.

3.How should we have gone about recruiting and screening for this position?  What selection tools, specifically, would you use?  Many tools could be included, such as background checks, interviews, etc.

4.Where do you think we went wrong?  It appears that they went wrong in not specifying that a requirement for the job would be to not have outsourced manufacturing overseas.

Continuing Case 3: Honesty Testing at Carter Cleaning Company

1.What would be the advantages and disadvantages to Donna’s company of routinely administering honest tests to all its employees? Polygraph testing raises a large number of legal and moral issues, issues Carter Cleaning would best avoid. Use of some of the available “paper–and-pencil” honesty tests may be a possibility.  In general, these have been shown to be reasonably reliable and valid.  They are still controversial.  The costs associated with these tests may also make them prohibitive to a small operation like Jennifer’s.

2.Specifically, what other screening techniques could the company use to screen out theft-prone employees, and how exactly could these be used? More thorough background checks are a recommended technique to eliminate potential thieves.  Some firms choose to contract this out to a private security agency (cost may be an issue to Jennifer). However, the company can quickly check to see if savings from reduced theft would offset the cost of an outside agency. As part of the job preview, Carter must communicate that dishonesty and theft will not be tolerated.  Further company policies regarding theft should be clearly communicated to new and existing employees.

3.How should her company terminate employees caught stealing, and what kind of procedure should be set up for handling reference calls about these employees when they go to other companies looking for jobs? Terminating employees for theft should include the involvement of proper authorities and should only be done when there is absolute proof of the theft and who committed it. Such an action will also send a message to the other employees that you will not tolerate theft of company resources.  While many employers are reluctant to prosecute employees for theft, developing evidence with police and through the courts can be beneficial in providing future employers of the individual with truthful and factual information.

Translating Strategy into HR Policies and Practice Case: The Hotel Paris 

Testing - The continuing case study of Hotel Paris is discussed here. In this example, Lisa Cruz, the HR manager, wants to design a battery of tests that will produce employees who can help the hotel meet its strategic objectives.

Questions

1.Provide a detailed example of the front desk work sample test. 

Students should begin by discussing the types of tasks a front desk clerk is responsible for. Figure 6-7 is an example of the type of question that should be on this test. 

2.Provide a detailed example of two possible personality test questions.

Answers will vary. Figure 6-6 gives excellent examples.

3.What other tests would you suggest to Lisa, and why would you suggest them?

Because front desk employees usually handle credit cards and make cash transactions, Lisa should consider the benefits of paper-and-pencil honesty testing.

KEY TERMS

negligent hiringHiring workers with criminal backgrounds without proper safeguards.

reliabilityThe characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests.

test validityThe accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill.

criterion validityA type of validity based on showing that scores on the test (predictors) are related to job performance.

content validityA test that is content valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question.

expectancy chartA graph showing the relationship between test scores and job performance for a large group of people.

interest inventoryA personal development and selection device that compares the person’s current interests with those of others now in various occupations so as to determine the preferred occupation for the individual.

work samplesActual job tasks used in testing applicants' performance.  

work sampling techniqueA testing method based on measuring performance on actual job tasks.

management assessmentA situation in which management candidates are asked to make 

centerdecisions in hypothetical situations and are scored on their performance.  It usually also involves testing and the use of management games.

situational testRequires examinees to respond to situations representative of the job.

video-based simulationA test in which examinees respond to video simulation of realistic job situations.

miniature job training Training candidates to perform several of the job’s tasks, and then evaluating the candidates prior to hire.

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