Exercise 6.1: Should Tenneco Use the Wonderlic Test?

The Wonderlic Personnel Test is one of many cognitive ability tests used to screen job
candidates. As Tenneco considers the utilization of this test as its only basis to select
management trainees, it is important to consider the possibility of adverse impact. For this
purpose, we will test the 80 percent rule as it has been used in case law to provide prima
facie evidence of adverse impact. Asians had the highest passing percentage among
Tennecos 400 store employees that took the Wonderlic Test at 83 percent. Blacks had the
lowest passing percentage at 51 percent.
80 Percent Rule: 0.83 (Asians passing percentage) * 0.80 (the rule) = 0.664 or 66.4%
Due to the fact that 51 percent is lower than 66.4 percent, the test does result in adverse impact
against Blacks. Additionally, Hispanics have a passing percentage of 58 percent. This is also
lower than eighty percent of the passing percentage of the group with the highest passing
percentage. Therefore, the test results in adverse impact against Hispanics as well.
However, cognitive ability tests are strongly correlated with successful completion of
occupational training. The average validity is .50 and it increases as jobs are more complex. In
addition to the concept of validity generalization, it is necessary to conduct a statistical study
with current assistant store managers. At least 100 job incumbents would take the test and results
would be compared to current job performance appraisals in order to show lack or existence of
job relatedness. Assuming the result from the study establishes the tests job relatedness, as it
would be most likely the case, the test can be used with other measures in order to minimize the
consequences of adverse impact.
As the position is intended to be filled from within, we recommend to additional use of
previous performance evaluations, a projective personality test, and a structured interview.
Previous performance evaluations can be worth 20 percent of the overall selection decision. Just
the same, the personality test and the Wonderlic test can each count for 25 percent of the
decision. Finally, the interview can count for 30 percent of the decision. Each selection
procedure can be scored with any value up to 100.
Specifically, banding can be used to score the Wonderlic test if the differences in scores do not
prove to be very significant. This selection procedure can be scored as follows:
0 for a score below 18
25 for scores of 18 and 19
50 for scores of 20 and 21
75 for scores of 22 and 23
100 for scores of 24 or more
This way, a person who scores below 24 is not completely disqualified from selection, rather it
will affect his or her overall selection score which will consist of three more selection
procedures. However, it is important not to base management trainee selections on the
candidates ethnicity group, instead use all four tools to select the most promising employees for
the job. Last, as the company hires for entry level positions in the future, it can target its

recruiting efforts towards qualified minorities so that as it promotes more assistant managers
from within, it will have a diverse group of qualified employees to choose from.