Testing and Selecting Employees

Introduction
The main purpose of this session is to explain how to use the basic employee selection tools.
The topics we cover include The Basics of Testing and Selecting Employees, Using Tests at Work, Interviewing
Prospective Employees, and Using Other Selection Techniques.

Content
When you finish studying this chapter, you should be able to:
1. Define basic testing concepts, including validity and reliability.
2. Discuss at least four basic types of personnel tests.
3. Explain the pros and cons of background investigations and pre-employment information services.
4. Explain the factors that can undermine an interviews usefulness and the techniques for eliminating them.

The Basics of Testing and Selecting Employees 1
Why selection is important
Legal implications
Negligent hiring
Reliability
Validity
How to validate a test
Selecting the right employees is important for four main reasons:
(1) proper selection can improve employee and organizational performance;
(2) your own performance depends partly on youre the performance of your subordinates;
(3) it can help reduce dysfunctional behaviors at work weeds out undesirables;
(4) it is costly to recruit and hire.
It can also prevent negligent hiring - Hiring workers with criminal records or other such problems
without proper safeguards
To be effective, the results of screening tests must be reliable and valid.
Reliability refers to the consistency of scores obtained by the same person when retested with
identical or equivalent tests.
Validity refers to evidence that performance on a test is a valid predictor of subsequent performance
on the job. It answers the question, Does this test measure what it was intended to measure?
Reliability
To estimate a tests consistency or reliability, you can obtain:
A retest estimate, by administering the same test to the same person at two different points in time and
comparing the test scores.
An equivalent-form estimate, by administering a test and then an equivalent form of the test at a later
date.
An internal comparison estimate, by posing questions that ask the same thing in different ways to elicit
a consistent response from a candidate.
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 again on a new sample of employees.

The Basics of Testing and Selecting Employees (2)
Validity generalization refers to the degree to which a test shown to be valid in one situation can legitimately be
considered to be valid in another. This is important in that it is not cost-effective for employers to conduct
validity studies.
Bias refers to a test which shows differences in the scores of test-takers based solely on group membership (e.g.,
males supposedly receiving higher scores than females in verbal reasoning).
Ethical and Legal Questions in Testing With respect to testing, laws concerning equality of employment
opportunity generally boil down to two things:
1) you must be able to prove that your tests are related to success or failure on the job, and
2) you must prove that your tests dont unfairly discriminate against either minority or nonminority
groups adverse impact.
Individual Rights of Test Takers and Test Security US Test takers have certain rights to privacy and information
under the American Psychological Associations (APA) standard for educational and psychological tests the
same applies in many other countries with established professional psychologist associations.
Using Tests as Supplements Tests should be used as a supplement tool in selection. As tests are not infallible,
other techniques should be used in conjunction with them, such as interviews and background checks.
Utility Analysis demonstrates the degree to which use of a selection measure improves the quality of individuals
selected over what would have happened if the measure had not been used.

Using Tests at Work Sample Selection Test
Tests can be effective.
Tests are also widely used by employers.
For example, about 41% of companies the
American Management Association surveyed
tested applicants for basic skills (defined as the
ability to read instructions, write reports, and
perform common workplace arithmetic tasks).
Note: Reading Instructions on examination
papers, homework assignments, and the
other things we stress here really are
important job-related skills!


Types of Tests Used (1)
Cognition
Motor, physical abilities
Personality
Personality test effectiveness
Interest
Achievement
Computerized
Web-based
Types of Tests Used at Work Various types of tests are widely used by employers today, including those for basic
skills, job skills, and psychological measurement.
Tests of Cognitive Abilities Cognitive tests include tests of general reasoning ability (intelligence) and tests of
specific mental abilities like memory and inductive reasoning.
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.
Measuring Personality Used to assess personal characteristics such as attitude, motivation, and
temperament.
Personality Test Effectiveness Historically, most experts assumed that personality tests help companies hire
workers that are more effective. Industrial psychologists often study the big five personality dimensions:
extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience.
Interest Inventories Compare ones interests with those of people in various occupations.
Achievement Tests Measure what a person has learned.
Computerized Testing Increasingly replacing pencil-and-paper and manual tests.
Web-Based Testing Studies suggest that proctored Web-based and paper-and-pencil tests of applicants
produce similar results, for instance on personality and judgment tests.






Two Problems from the Test of Mechanical Comprehension Type of Question Applicant Might Expect on a
Test of Mechanical Comprehension





Types of Tests Used (2)
Work samples and simulation
Work sampling
Management assessment centers
Situational judgment tests
The work sampling technique tries to predict job performance by requiring job candidates to perform one or
more actual samples of the jobs task.
Management Assessment Centers provide simulations in which candidates perform realistic management
tasks, under the observation of experts who appraise each candidates potential.
Situational Judgment Tests These tests are designed to assess an applicants judgment regarding a situation
encountered in the workplace.

Interviewing Prospective Employees
An interview is a procedure designed to solicit information from a persons oral responses to oral inquiries.
A selection interview is a selection procedure designed to predict future job performance on the basis of
applicants oral responses to oral inquiries.

Types of selection interviews
Structure Structured or directed interview; most interviews vary by the degree to which the interview has
been structured or standardized.
Type of Questions Interviews can be classified according to the nature or content of their questions, such as
situational interviews, job-related interviews, behavioral interviews, and stress interviews. Puzzle questions are
also popular today, and are used to see how candidates think under pressure.

How Interviews are Administered
One-on-one where two people meet alone and one person interviews the other by seeking oral responses
to oral inquiries.
Sequential interviews occur when several interviewers question the candidate in a sequence before a
selection is made.
Panel interviews occur when a group (panel) interviews several candidates simultaneously.
Video or phone interviews are often conducted entirely by phone or videoconferencing, saving time and
travel costs.
Computerized interviews assess responses to computer-based oral, visual, or written questions/situations.

How Interviews are Administered: Bain & Company case interviews
By having job candidates explain how they would address the case clients problems, the case interview used by
Bain & Company combines behavioral and situational questioning to provide a realistic assessment of the
candidates consulting skills.
See HRM course Case study assignment as another example a test of your skills.

How Useful are Interviews?
Although virtually all employers use interviews, the evidence regarding their validity is mixed.
With respect to predicting job performance, situational interviews yield a higher mean (average) validity than do
behavioral interviews.
Structured interviews are more valid than unstructured interviews for predicting job performance. They are
more valid partly because they are more reliablefor example, the same interviewer administers the interview
more consistently from candidate to candidate.
Whether structured or unstructured, individual interviews tend to be more valid than are panel interviews, in
which multiple interviewers provide ratings in one setting.

How to Avoid Common Interviewing Mistakes (1)
Snap Judgments One of the most consistent findings is that interviewers tend to jump to conclusions about
candidates during the first few minutes (perhaps seconds) of the interview.
Negative Emphasis Interviewers tend to have a consistent negative bias and are generally more influenced by
unfavorable than favorable information about the candidate.
Not Knowing the Job Interviewers who dont know precisely what the job entails and what sort of candidate
is best suited for it usually make their decisions based on incorrect or incomplete stereotypes of what a good
applicant is.
Pressure to Hire Pressure to hire can undermine an interviews usefulness.
Candidate-Order (Contrast) Error The order in which you see applicants affects how you rate them.
Influence of Nonverbal Behavior Inexperienced interviewers may try to infer the interviewees personality
from vocal and visual cues, such as energy level, voice modulation, and level of extraversion.
How to Avoid Common Interviewing Mistakes (2)
Attractiveness
Race
Ingratiation
Implication
Disability and interviews
Attractiveness, gender, disability, or race may distort assessments. For example, people who are considered to
be more attractive are assigned more favorable traits and even successful life outcomes.
Race In a study examining racial differences the authors found, in the primarily white and balanced panels,
white interviewers rate the white candidate higher, and black interviewers rated black candidates higher.
Ingratiation Agreeing with the interviewers opinions and self-promotion to create an impression of
competence are techniques used by clever interviewees in order to manage the impression they present.
Nonverbal Implications Interviewers should endeavor to look beyond behavior to who the person is and
what they are saying, as candidates are trained to act right.
Applicant Disability and the Employment Interview Research findings suggest that interviewers tend to avoid
addressing the disability, and therefore make their decisions without all the facts.

Guidelines for Conducting the Interview
Plan
Structure
Rapport
Questions
What not to ask
Closing
Review

























Plan the Interview by thoroughly reviewing the candidates application and resume, noting discrepancies,
vagueness, and any strengths and weaknesses.
Structure the Interview
Step 1: Study the job description.
Step 2: Use job knowledge, background, and situational or behavior questions for sizing up the
candidate.
Step 3: Train interviewers.
Step 4: Use the same questions with all candidates.
Step 5: Use rating scales to rate answers.
Step 6: Use multiple interviewers.
Step 7: Use a structured interview form.
Step 8: Take brief notes during the interview.
Establish Rapport The interviewer should put the interviewee at ease so he/she can find out the necessary
information about the interviewee.
Ask Questions The interviewer should follow the pre-prepared interview guide.
What Not to Ask The interviewer should make sure he or she steers clear of any of questions about age,
gender, national origin, marital status, handicap, or other prohibited or illegal criteria.
Close the Interview Leave time to answer any questions the candidate may have.
Review the Interview Once the candidate leaves, and while the interview is fresh on the interviewers mind,
he/she should review his/her notes and fill in the structured interview guide.

Talent Management
Talent Management: Profiles and Employee Interviews are important to ensure consistency in using the same sets of
competencies, traits, knowledge, and experience for recruiting, training, appraising, and compensating employees.

Using Other Selection Techniques
About 82% of American HR managers report checking applicants backgrounds; 80% do criminal convictions
searches, and 35% do credit history reports.
There are two key reasons for checking backgrounds.
One is to verify the facts provided by the applicant (for example, a survey found that 23% of 7,000
executive rsums contained exaggerated or false information).
The other reason is to uncover damaging background information such as criminal convictions.

Background Investigation and Reference Checks
What to verify
Social networking sites
Pre-employment information services
Reference check effectiveness
More productive checks
Background Investigations and Reference Checks Most employers check and verify an applicants
background information and references, including driving record, a check for criminal charges or convictions,
and a credit check.
What to Verify The main reasons for conducting investigations into an applicants background are to verify
factual information and to uncover damaging information in order to help prevent losses.
Checking Social Networking Sites Employers often check social networking site postings online, such as
Facebook and LinkedIn.
Using Pre-employment Information Services Various federal and state laws govern how employers acquire
and use applicants and employees background information. Compliance involves three steps: 1) Applicant-
signed release authorizing the background check; 2) complies with relevant laws; and 3) uses only legal data
services.
Reference Check Effectiveness Reference letters are not viewed as very useful. Fewer than half of US HR
managers state that they were able to obtain adequate information about candidates.
Making Reference Checks More Productive Employers should include a statement on their application forms
for applicants to sign that explicitly authorizes 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.

Honesty Testing
Polygraph testing
Honesty tests
Graphology
Human Lie Detectors
Physical exams
Not all of these are used everywhere, and some may be illegal in some countries this is what is used in
the USA
Polygraph Tests A lie detector is a device that measures physiological changes, like increased perspiration,
while being questioned.
Paper-and-Pencil or computerized honesty tests Such honesty tests are psychological tests designed to
predict job applicants proneness to dishonesty and other forms of counter-productive behavior.
The use of graphology (handwriting analysis) assumes that handwriting reflects basic personality tests.
Human lie detectors are individuals trained to watch for and evaluate such things as micro-expressions and
other non-verbal behaviors to assess deceptiveness and other non-productive behaviors in potential employees.
Physical Exams Once an offer is made and the person is hired, a medical exam is usually the next step in the
selection process.

Drug Screening
Problems Legal issues
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. Such tests include urine testing, breath alcohol tests,
and hair analysis, among others.
Problems Drug testing does not always correlate closely with actual impairment levels.
Legal Issues Former drug users may be protected under laws such as the ADA. Privacy rights are also often
cited.

More Selection Techniques
Realistic Job Previews Being explicit about work schedules, preferences, and other job standards at the point
of interview can help reduce turnover later.
Tapping Friends and Acquaintances the best possible interview is minuscule in value compared to
somebody whos got even a couple months of work experience with *the candidate+.
Under the Immigration Reform and Control Act of 1986, employees hired in the United States have to prove
they are eligible to work in the United States.
There are two basic ways to show eligibility for employment. One is to show a document, such as a U.S. passport
or alien registration card, with a photograph that proves both identity and employment eligibility. The other is to
show a document that proves the persons identity, along with a separate document showing the persons
employment eligibility, such as a work permit.
Similar legislation exists in most other countries,
Making the Selection Decision There are three basic approaches to making a selection decision:
1) a clinical approach (intuitive),
2) a statistical approach
3) a hybrid approach.

Testing and Selection Practices: Hong Kong
Methods: range from simple application forms to sophisticated tests and assessment center
Companies with HR departments more thorough in selection
Anti-discrimination laws prohibit discrimination in selection (gender, marital status, disability or family status)
Testing and Selection Practices: Japan
Mid-career applicants
Assess on past experience, skill and professional knowledge relatively rare in Japanese companies
New graduates: selection more complicated commonly known as shshoku or shuushoku(), also known as
shukatsu () which is an abbreviation for shuushoku katsudou (); the relatively rules-based process
of searching for employment that most students go through.
New graduates:
Sit for companys exam (on common sense, languages, math, intelligence, etc.)
Attend several interviews
The employment process for fresh Japanese graduates (mostly people with zero full-time work
experience) in Japan is all or most of the following (not necessarily in order):
Most common steps in Shuushoku
1. Submission of rirekisho or rsume (with or without an essay, depends on company).
2. Preliminary interview for those who passed the rsume review (some companies skip this and just let
everyone take the examination and judge according to examination scores).
3. Hikkishiken or written exam (Language + Math + English. Tech-related companies put more emphasis on
the Math, other companies give half-and-half for math and Languages). After three days or so, those
who pass will have an.
4. Ichijimensetsu or first interview (group or individual). Mostly it is the Human Resources personnel who
conduct this. If a students makes it, after three days to a week is
5. Nijimensetsu or second interview (group or individual, depends on whether the first one was group or
not). Usually they are interviewed by a group of middle management guys. After three days to a week is
6. Sanjimensetsu or third interview (individual). This time they face upper management. If they survive,
after three days to a week is
7. Saishu mensetsu or final interview. They are now face to face with top management. Three days to a
week later, they contact the interviewees and, if they are successful, blessed, they are given the
8. Naitei no oshirase or notification of acceptance. So it is a long process that takes months.
Firms, including large companies and the government, often tend to recruit from specific universities,
specific departments within those universities, and students of specific teachers within those department,
or from members of specific clubs within those universities.
Applying to one company, from their written examination up to the final interview (if one makes it that far,
that is), takes a whole month of going back and forth to the company building taking examinations and the
multi-tier interviews.
It is especially tough for those who do not live in the major cities, as they have to travel, find a place to stay,
and so on.
Testing and Selection Practices: Malaysia
Methods: wide range
Application form, interview, tests, health check etc.
Low level positions
Interview and test applicants skill and ability
High level positions
Series of tests to measure intelligence, aptitude, skills and personality
Testing and Selection Practices: Singapore
Study of HR practices by Chew and Goh (1997)
Most frequently used methods
Weighted application form
Reference check
Interview
Medical exam
A weighted application form is a form whose responses are assigned a numerical value that correlates to the
skills, knowledge, and abilities needed to perform the job.
Individual items of information are validated against performance and turnover measures and given appropriate
weights.
Data are collected for each job to determine how well a particular item (e.g., years of schooling, tenure on last
job) predicts success on target job.
The primary purpose of using weighted application forms is to reduce employee turnover.
Employers conduct weighted application evaluations by assigning numeric values to key position requirements
and then producing a list of qualified applicants ranked by their weighted scores.
Reference checks were used to select:
Managers (58% of companies surveyed)
Supervisors (46% of companies surveyed)
Rank and file (37% of companies surveyed)
For rank and file employees
Work sample and job ability test more frequently used