SESSION 7

Employee Selection
Why Careful Selection is Important

The Importance of Selecting

the Right Employees

Organizational Costs of recruiting Legal obligations

performance and hiring and liability
 Basic Testing Concepts
• Reliability
– Describes the consistency of scores obtained by
the same person when retested with the identical
or alternate forms of the same test.
– 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?
 Reliability

• Test-retest reliability – administer a test to a group one day, re-

administer the same test several days later to the same group, and
then correlate the first set of scores with the second

• Equivalent of Alternate Form Estimate – administer a test and then

administer what experts believe to be an equivalent test later

• Internal Comparison Estimate – compare the test taker’s answers

to certain questions on the test with his or her answers to a
separate set of questions on the same test aimed at measuring the
same thing
 Criterion Validity

Means demonstrating that scores on a test are related to job

performance; those who do well on the test also do well on the
job, and vice versa. It measures how well one measure predicts
an outcome for another measure.
For Example:
- A job applicant takes a performance test during the selection
process. If this test accurately predicts how well the employee
will perform on the job, the test is said to have criterion validity.
- A graduate student takes the GRE. The GRE has been shown as
an effective tool (i.e. it has criterion validity) for predicting how
well a student will perform in graduate studies.
 The first measure (in the above examples, the job performance test
and the GRE) is sometimes called the predictor variable or
the estimator. The second measure is called the criterion
variable (performance in job or graduate studies) as long as the
measure is known to be a valid tool for predicting outcomes.
• Criterion validity can be of two types:
a. Predictive Validity: if the test accurately predicts what it is
supposed to predict. For example, the SAT exhibits predictive
validity for performance in college. It can also refer to when
scores from the predictor measure are taken first and then the
criterion data is collected later.
b. Concurrent Validity: when the predictor and criterion data are
collected at the same time. It can also refer to when a test
replaces another test (i.e. because it’s cheaper). For example, a
written driver’s test replaces an in-person test with an instructor.
Evidence-Based HR: How to Validate a Test

Steps in Test Validation

Analyze the Job: job analysis to identify predictors (human traits
1 and skills) and success criteria (production, turnover,
absenteeism)
Choose the Tests: how to test for predictors (ex. Manual
2
dexterity); based on experience, research, best guesses
Administer the Test: concurrent or predictive validation to test
3
scores and performance on job

4
Relate Your Test Scores and Criteria: ascertain relation
between scores and actual performance through statistical
analysis
5 Cross-Validate and Revalidate: repeat Steps 3 and 4 with a
different sample
 FIGURE 6–3 Expectancy Chart for testing Mechanical-spatial skills

Note: This expectancy chart shows the

relation between scores made on the
Minnesota Paper Form Board and rated
success of junior draftspersons.

Example: Those who score between 37

and 44 have a 55% chance of being rated
above average and those scoring between
57 and 64 have a 97% chance.
FIGURE 6–2 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 non-
employment
• 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.assessments.biz
One of many firms offering employment tests
 Utility Analysis (UA)
• Knowing the test is reliable and valid is important, but one must consider
practical use of the test
For example: if it is going to cost the employer Rs. 1000/- per applicant for
the test, and hundreds of applicants must be tested, the cost of the test
may exceed the benefits derived from hiring a few more capable
employees
• Answering the question “Does it pay to use the test?” requires UA
• Using dollar and cents terms [UA] shows the degree to which a selection
test improves the quality of those selected versus what decision would
have been made without it.
• UA usually includes the validity of the measures, a measure of job
performance in dollars, the applicant’s average test scores, the cost of the
measure, and the number of applicants tested and selected
 Types of Tests

What Different Tests Measure

Cognitive Motor and Personality Current

abilities physical abilities and interests achievement
Cognitive Abilitiy Tests
Tests of general reasoning ability (intelligence) and tests of specific mental
abilities
• Intelligence Test – are tests of general intellectual abilities and measure
not a single trait but a range of abilities including memory, vocabulary,
verbal fluency and numerical ability
Individual IQ: Stanford-Binet Test or Welchester Test
Individual/Group IQ: Wonderlic

• Specific Cognitive Abilities – are tests of specific mental abilities such as

deductive reasoning, verbal comprehension, memory and numerical
ability.
Also called aptitude test, as they purport to measure potential or
capability for performing a task in the future for job in question;
Ex. Test of Mechanical Comprehension measures aptitude for jobs like
machinist or engineer that require mental comprehension

Other Mechanical Aptitude Tests: Mechanical Reasoning Test or SRA Test

of Mechanical Aptitude
Mechanical Spatial Ability (for designers or engg.)– Minnesota Paper Form
Board Test
FIGURE 6–5 Type of Question Applicant Might Expect on a
Test of Mechanical Comprehension
Tests of Motor and Physical Abilities
• Motor abilities - manual dexterity (hand and finger movements) and
reaction time (if hiring pilots);
Crawford Small Parts Dexterity Test measures the speed and accuracy of
simple judgement as well as the speed of finger, hand and arm
movements
Stromberg Dexterity Test, Purdue Peg Board
• Physical abilities - static strength (lifting weights), dynamic strength (pull-
ups), body coordination (jumping rope), and stamina
Physical Test as done in Indian Armed Forces

Personality and Interest Tests

• Personality - introversion, stability and motivation, Big Five
- Projective: psychologist presents an ambiguous picture and the
person reacts;
MAPS, Rorschach Inkblot Test, Forer Structured Sentence Completion
Test
- Self-reported: applicants fill them out
MBTI, DiSC Profile Learning Instrument (behavioral style)
FIGURE 6–1 A Slide from the Rorschach Test
 The “Big Five”
Extraversion

Emotional stability/
Conscientiousness
Neuroticism

Openness to
Agreeableness
experience
• Interest inventory – compares ones interest with those of people in
various occupations so as to determine the preferred occupation for the
individual
Strong Campbell Interest Inventory
SDS (self-directedsearch.com) to identify likely high-fit occupations; also
predict employee performance and turnover

Achievement Tests
Measures what someone has learned;
Measure “job knowledge” in areas like Economics, Marketing, HR,
Engineering
Ex. Tests taken in school, colleges
Asking experienced machinists what is meant by ‘tolerance’?
Also sometimes measure abilities such as swimming
 Work Samples and Simulations
They directly measure job performance
Work samples – actual job tasks used in testing
applicant’s performance
FIGURE 6–7 Example of a Work Sampling Question for Maintenance Mechanics

Checks key before installing against:

___ shaft score 3
Note: This is one ___ pulley score 2
step in installing
pulleys and belts ___ neither score 1
Note: This is one step in installing pulleys and belts.
Situational Judgment Tests – personnel tests designed to assess an
applicant’s judgment regarding a situation encountered in the workplace

Management Assessment Centers – A simulation in which management

candidates are asked to perform realistic tasks in hypothetical situations and
are scored on their performance. It usually involves testing and the use of
management games.
• The in-basket
• Leaderless group discussions
• Management games – part of simulated companies
• Individual oral presentation
• Testing personality, mental ability, interests and achievements
• The interview to assess interests, past performance and motivation

Video Based Situational Testing – follows one or more multiple choice

questions

Miniature Job Training and Evaluation Approach – training candidates to

perform several of the job’s tasks, and then evaluating the candidates’
performance prior to hire
 Background Investigations and
Other Selection Methods
• Investigations and Checks
– Reference checks
– Background checks
– Criminal records
– Driving records
– Credit checks
• Why?
– To verify factual information provided by applicants
– To uncover damaging information
Background Investigations and
Reference Checks
Former Employers

Current Supervisors

Sources of Commercial Credit

Information Rating Companies

Written References

Social Networking Sites

• The Polygraph and Honesty Testing
Polygraph: device for measuring physiological changes like increased
perspiration; such changes reflect changes in emotional state that
accompany lying;
Ex. FBI, Firms with National Defense or Security Contracts, Nuclear-power
related contracts
Written Honesty Tests: psychological tests designed to predict job
applicant’s proneness to dishonesty and other forms of
counterproductivity.
Phase II Profile Test, London House Inc. and Stanton Corporation publish
similar tests

• Graphology – handwriting analysis to determine writer’s basic personality

traits, psychological make-up

• “Human Lie Detectors” – identify lying just by watching candidates

• Physical Examination

• Substance Abuse Screening

 Class Readings
A Note on Interviewing
Note on the Hiring and Selection Process
How to Ace an Interview
How to Make Your Case in 30 Seconds or Less
 Suggested Readings
https://hbr.org/2019/11/how-to-tactfully-disagree-in-a-job-interview
https://hbr.org/2009/05/how-to-perfect-an-elevator-pit
https://hbr.org/2014/12/your-elevator-pitch-needs-an-elevator-pitch
https://hbr.org/2022/11/how-to-write-a-thank-you-email-after-an-
interview
https://hbr.org/2014/05/zappos-killed-the-job-posting-should-you
https://hbr.org/2022/01/how-to-find-a-new-job-an-hbr-guide
https://hbr.org/2009/06/the-best-cover-letter
https://hbr.org/2014/02/how-to-write-a-cover-letter
https://hbr.org/2020/06/how-to-nail-a-job-interview-remotely
https://hbr.org/2009/07/ace-the-interview
Thank You