Mployee Election: C H A P T e R

chapter
6 EMPLOYEE SELECTION
With companies increasing their focus on the “human side of competitiveness,” greater attention is
being given to employee selection than ever before. In Chapter 6 we have endeavored to provide
the student with an understanding of the process and the many principles and procedures involved in
employee selection.
Because of the importance of reliability and validity in selection procedures, these concepts are
discussed early in the chapter. Following these basic concepts is a section on sources of information
about job candidates, except for testing and interviewing. These two sources of information are
presented in expanded discussions so the reader will have sufficient background for developing a
further understanding of the values of both of these tools. In studying the material about testing,
reference should be made to Chapter 3, which covers the EEOC requirements. This chapter concludes
with a discussion of what is involved in reaching a selection decision. While the clinical approach
to decision making is mentioned, the emphasis is placed on statistical approaches.
CHAPTER LEARNING OBJECTIVES
Explain the objectives of the personnel selection process.
Identify the various sources of information used for personnel selection.
Compare the value of different types of employment tests.
Illustrate the different approaches to conducting an employment interview.
Describe the various decision strategies for selection.
77
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78 Part 3: Developing Effectiveness in Human Resources
LECTURE OUTLINE
I. MATCHING PEOPLE AND JOBS
Those who are responsible for making selection decisions should have Presentation
adequate information on which to base them. Use Presentation Slide Slide 6-4
6-4: The Goal of Selection (also Figure 6.1 in the text) to discuss the
fact that organizations try to maximize their accurate predictions (hits) Figure 6.1
and minimize their inaccurate ones (misses).
A. Person-Job Fit: Beginning with Job Analysis
Job analysis provides the basis for determining what types of information should be
obtained from the applicant, from previous employers, and from other sources. Review
the major points in Chapter 4 relating to job descriptions and specifications.
B. Person-Organization Fit
In addition to the job requirements, many organizations place a priority on finding indi-
viduals that meet broader organizational requirements. Discuss with students some
instances in which managers will pass up potential employees if they don’t embrace the
values of the organization.
C. The Selection Process

• Use Figure 6.2 to discuss the major steps in the selection process.
Figure 6.2
• Since there is not an expanded discussion of these steps at the
beginning of the chapter, it is recommended that the steps be
reviewed at this point. Emphasize that the order may vary and that some steps may
be omitted. In some situations, a person may be put through all the steps, whereas in
others, a candidate may be rejected after one or two steps.
• While no mention is made of the process of classification, such as one finds in the
military forces, you may wish to explain the difference between selection and clas-
sification.
D. Obtaining Reliable and Valid Information
• Emphasize that there are various types of reliability. Use Pre-
Presentation Slides
sentation Slide 6-7: Reliability as Stability over Time and 6-7 and 6-8
Presentation Slide 6-8: Reliability as Consistency (Interrater
Reliability) to illustrate this.
• If data are not reliable, they are of little value. It is important to check for reliability
since it places an upper limit on how valid a test can be (see below).
• It is essential that information be as valid as possible, that is, related to or predictive
of job performance and other relevant criteria.
• With the introduction of the Uniform Guidelines described in Chapter 3, validity has
been a requirement. Emphasize the three major types of validity. Aside from the three
types, there is face validity, that is, how relevant a test or other selection procedure
appears to the applicant.
• Use Presentation Slide 6-9: Valid and Invalid Tests as a basis Presentation
for discussing the three major types of validity. Slide 6-9
Chapter 6: Employee Selection 79
1. Criterion-Related Validity
• Test scores, interviewer ratings, and so on are correlated with production records,
supervisory ratings, training outcomes, and other measures of success. It is often
easiest to think of the criteria as being some variation of quantity and quality.
• Use Presentation Slides 6-10 and 6–11: Approaches to Presentation
Validation to discuss the steps in validating a test using Slides 6-10 and 6–11
the criterion-related method. Note that the presentation
slide provides for both types: concurrent and predictive.
a. Use of Correlational Methods
• Illustrate correlation scatterplots by referring students
to Figure 6.3 in the textbook. Figure 6.3
• Most students will probably have some knowledge of

correlation. It is advisable to point out that correlation between two
measures does not represent causation.
•
Mention that predictive measures (interviews, tests, and so on) that have been
individually validated may be combined statistically to yield a higher overall
validity.
b. Validity Generalization. In recent years there have been many articles about valid-
ity generalization, that is, the generalizing of validity coefficients across similar
situations. It is likely that this trend will continue, and it will not be necessary to
run validity studies in each organization.
2. Content Validity
• Content validity is assumed to exist when a selection instrument measures a repre-
sentative sample of knowledge and skills needed to perform a particular job.
• Content validity is established from the opinions of subject-matter experts rather
than by correlational methods. Most often, these decisions are based on informa-
tion taken from job analysis.
•
The military forces have made considerable use of content validity in the develop-
ment of job knowledge tests. A team of experienced individuals in the same job
develops an outline that covers the essential knowledge that one should have to
be able to perform in that job. The same approach is used in developing licensing
tests for professionals (e.g., physicians, architects, and accountants).
3. Construct Validity
• Construct validity is the extent to which a selection tool measures a theoretical
construct or trait. For example, a mechanical comprehension test consists of a
wide variety of tasks that are assumed to measure the construct of mechanical
comprehension. To use it in employment situations, one has to show that the test
measures the construct and that the construct or trait is related to satisfactory job
performance.
• Advise students that construct validity has not been used extensively in employ-
ment situations but may be used in the future.
II. SOURCES OF INFORMATION ABOUT JOB CANDIDATES
• Use Presentation Slide 6-15: Sources of Information about Job Candidates as a structure
for the lecture. It may be desirable to mention interviewing and
Presentation
testing only briefly and then devote more time to these topics after Slide 6-15
reviewing the other sources of information.
A. Application Forms
• It is quite common for employers to use application forms that are in violation of FEP
legislation. The HR manager should check all application forms periodically. It is a
good idea to state on the application form that the firm does not discriminate and is
an EEOC employer. If the firm’s state allows it, the form should state that all
employees are hired at-will.
• Note that some companies use a weighted application blank that tries to distinguish
between successful and unsuccessful employees. Use this discussion as a bridge to
talking about biographical information blanks (below).
B. Online Applications
• Approximately 95 percent of Fortune 500 companies now accept online job
applications. Some companies list their job postings on their own Web sites; others
use services like Monster.com and CareerBuilder. Still others contract with third-
party applications providers (ASPs), like PeopleSoft, SAP, and Oracle to handle the
process.
• This practice speeds up the application process and allows organizations to track
applicants, combine information, and disseminate possible leads to managers more
quickly.
C. Biographical Information Blanks
• After being validated, biographical information blanks (BIBs) are usually scored like
tests. Weights are assigned to an applicant’s responses according to how much a
response to a particular item relates to job success (the criterion).
• Note the early uses of BIBs in the selection of life insurance salesmen (before there
were any women selling life insurance).
• During World War II, a BIB was administered to candidates for aircrew positions in
the Army Air Forces. Experience in skiing and in riding a motorcycle was found to
be predictive of success in learning to pilot an aircraft. Small bits of information like
this can add up when a BIB with a large number of items, each having some degree
of validity, is used.
D. Background Checks
• Following 9/11 and a rash corporate scandals, more employers are conducting
background checks on applicants. Falsification of a college degree is widespread, for
example. Even hospital administrators have been known to hire “physicians” with
fake degrees. In some instances, companies have been sued for not doing adequate
background checks on their employees. Like the application process, many
background checks are now being done online, but most large companies outsource
at least part of the background screening process.
•
Figure 6.4 in the textbook shows the different types of pre-
Figure 6.4
employment screening tools Fortune 1000 companies use and
how often they utilize them.
1. Checking References—Mail, telephone, and fax are used to check references.
Telephone checks provide for maximum candor. Highlights
Highlights in
in HRM 1 is a sample list of questions employers can ask HRM 1
when checking references. Inadequate reference checking is
one of the major causes of high turnover, employee theft, and white-collar crime.
Employers should use all available methods, but they should be consistent and not
discriminate by treating applicants differently.
2. Using Credit Reports—Note special requirements when an investigative consumer
report is used. Also note requirements when regular credit reports are used. Point out
that too often credit checks are used when they aren't really needed and unlawfully
screen out a disproportionate number of minority applicants. Consequently, some
states have begun limiting their use.
E. Polygraph Tests
• While several states have had laws regulating the use of the polygraph, the Employee
Polygraph Protection Act of 1988 prohibits most private employers from using a lie
detector for prehire screening and random testing. Only a small percentage of
firms currently use lie detector tests, although they are prevalent among law
enforcement agencies.
• Note that the federal law does not preempt states or local jurisdictions from having
laws that are more restrictive with respect to polygraph tests.
F. Honesty and Integrity Tests
• In response to the Employee Polygraph Protection Act, employers have increased
their use of paper-and-pencil tests to assess a person’s honesty and integrity. Research
reveals that these are valid for predicting job performance, as well as theft, disciplinary
problems, and absenteeism. Nevertheless, such tests should be used cautiously and
with other sources of information about the candidates. It’s possible that the tests
“work” not because they predict behavior but because they deter less-than-honest
applicants from joining a company. Lastly, applicants sometimes view the tests as an
invasion of their privacy.
• Use Figure 6.5 in the textbook to discuss with students pos-
Figure 6.5
sible items or issues that could be included on an integrity test.
What confidence do students have in these types of tests?
G. Graphology
• Some employers use handwriting analysis to make employment decisions. Tradition-
ally, it has been more popular in Europe than in the United States.
• Use of graphology is still not supported by formal and rigorous validation. Some U.S.
courts have ruled that handwriting analysis can only be used to authenticate whether
a handwriting sample is genuine or forged, and not be used to imply anything about
a person’s psychological or work characteristics.
H. Medical Examinations
About one-half of the employers reporting to a BNA survey indicated that they give pre-
employment medical examinations.
I. Drug Testing
• Well over half of all U.S. companies use drug tests to screen applicants. Urinalysis
is the preferred form of test, but hair, saliva, and sweat tests are also used.
• Since passage of the Drug-Free Workplace Act of 1988, applicants and employees
of federal contractors, the Department of Defense, and the Department of Transpor-
tation are subject to drug testing.
III. EMPLOYMENT TESTS

While the passage of the Civil Rights Act of 1964 resulted in problems for employers with
testing and a decline in the use of employment tests, there has been a return to using them.
One of the drawbacks of pre-employment testing is that it creates the potential for legal
challenges. Research shows that the more tests a company requires applicants to take, the
higher the likelihood of a lawsuit is. Students should be encouraged to learn as much as
possible about tests, including when they should be used and when they should not. Majors
in HRM are advised to enroll in a course in testing, especially one that covers the basic
principles as well as employment tests.
A. Nature of Employment Tests
• Repeat this definition: An employment test is an objective and standardized measure
of a sample of behavior that is used to gauge a person’s knowledge, skills, abilities,
and other characteristics (KSAs) in relation to that of other individuals.
• Even though tests are constructed and must meet the standards of reliability and valid-
ity, it is the responsibility of the HR staff to do a thorough job analysis and conduct
validation studies. While a test should have face validity, that is, appear relevant to
the tasks or job, face validity is no substitute for technical validity as described
earlier.
B. Classification of Employment Tests
Tests can be classified, generally, as either aptitude tests (measuring a person’s
capacity to learn or acquire new skills) or achievement tests (measuring what a person
currently knows and can do).
1. Cognitive Ability Tests
• These tests measure mental abilities such as intelligence,
verbal fluency, numerical ability, and reasoning ability. Figure 6.6
Figure 6.6 in the textbook shows examples of several
different types of cognitive ability test questions.
• Point out that many experts believe that the validity of specific cognitive ability
tests simply reflect their connection to general intelligence.
• Note that the Mental Measurements Yearbook and the Test Critiques are good
resources for many employment tests. The instructor may wish to have the library
move these materials from the reference section to library reserve for a few days
for this purpose. There is also a sample review at the Buros Institute website
(www.unl.edu/buros).
2. Personality and Interest Inventories
• Personality tests measure a person’s dispositional characteristics, such as extro-
version. Interest tests (e.g., Kuder Inventory) measure a person’s preference for
certain types of activities.
• The “Big Five” personality factors are extroversion, agreeableness, conscientious-
ness, emotional stability, and openness to experience. Just for fun, ask students
to rank order these personality characteristics for themselves. Then ask them which
kind of jobs might require which personality attributes.
• Use Figure 6.7 in the textbook as a basis for discussion
Figure 6.7
about discrimination in personality testing.
3. Physical Ability Tests
• For potentially dangerous jobs such as firefighter, physical abilities tend to be
good predictors of performance, accidents, and injuries.
• Point out that physical ability tests may work to the disadvantage of women and
disabled applicants. This may raise some discussion, particularly concerning cur-
rent issues surrounding the ADA.
4. Job Knowledge Tests—These are a type of achievement test that measures a person’s
level of understanding of the job. The CPA exam is one example.
5. Work Sample Tests
• Also known as job sample tests, work sample tests are also a type of achievement
test that requires an applicant to perform tasks that are actually part of the job.
They are similar to a job “tryout” and are used frequently in office/clerical jobs.
• Discuss the advantages of job knowledge tests and work sample tests as objective
sources of information about an individual’s knowledge and skills. These types
of tests are generally overlooked except in the military forces where they are
used as a basis for upgrading in a career ladder. They are also widely used for the
licensing of professional persons, especially in occupations in which the health
and safety of the public are of concern.
IV. THE EMPLOYMENT INTERVIEW

Traditionally, the interview has played a very important role in the selection process. Researchers,
however, have their doubts about its value. It nonetheless remains a mainstay of the
employee selection process.
A. Interviewing Methods
Emphasize that the differences in interviewing methods are largely in the degree of struc-
ture. The use of highly structured interviews is recommended in this textbook.
1. The Nondirective Interview
• The nondirective interview allows maximum freedom to the interviewee to deter-
mine the course of the interview.
• This type of interview is particularly useful in bringing out any information, atti-
tudes, and feelings that may otherwise be concealed or not allowed to surface.
• This method is often used in at least one interview conducted with candidates for
high-level positions.
2. The Structured Interview
• In response to EEO requirements and a concern for maximizing the validity of
interviews, the structured interview uses a standard set of questions (based on
job analysis) and an established set of answers for rating applicants.
• Emphasize the structured interviewing process developed by the staff of Weyer-
haeuser Company. Note the six points listed in the textbook.
3. The Situational Interview
• The situational interview is similar to a structured interview, but it gives appli-
cants a hypothetical situation and asks them how they would deal with it. As with
the structured interview, there are preestablished benchmark answers for rating
applicant responses.
• Call the students’ attention to Highlights in HRM 3 in the Highlights in
textbook, which contains a sample situational interview HRM 3
question and scoring guide.
4. The Behavioral Description Interview—The behavioral description interview
(BDI) is similar to a situational interview in that it focuses on real work incidents.
However, in this case, the applicant is asked about what he or she actually did in a
given situation (e.g., “Tell me about the last time you dealt with an irate customer.”).
Use of the BDI assumes that past performance is the best predictor of future perfor-
mance. In addition, the behavioral description interview is more effective than the
situational interview for hiring higher-level positions such as general managers and
executives.
5. The Panel Interview—In the panel interview, the candidate meets with three to five
interviewers who take turns asking questions. These panelists then pool their obser-
vations and rating scores to reach a consensus decision.
6. Computer and Virtual Interviews
• Some companies have begun using computer programs and online questionnaires
to ask a preliminary set of multiple-choice questions. The computer program
does not make an evaluation per se, but it can summarize responses, itemize
contradictory responses, point out potentially problematic responses, and generate
a list of questions that an interview might address.
• Most organizations still use online, or computeri, interviews as a supplement to
conventional interviewing methods. Some companies, however, use it as a
screening device to filter out unqualified applicants who don’t merit a personal
interview.
• As we have explained, some companies are conducting virtual-simulation tests,
some of which have been developed within the virtual-reality game Second Life.
Firms are finding that virtual simulations can engage Generation Y and
Millennial candidates.
7. Video and Digitally-Recorded Interviews—Companies such as AT&T, Dell
Computer, Shell Oil, and Nike are among the companies that have used
videoconferencing to evaluate job candidates. Video or digitally recorded
interviews are often faster, more flexible, and less costly than face-to-face interviews.
• Highlights in HRM 4 shows some of the basic (and hum- Highlights in
orous) mistakes applicants make when applying for a job. HRM 4
C. Guidelines for Employment Interviewers

Figure 6.8
• Use Figure 6.8: Variables in the Employment Interview to
discuss with students findings from research studies on the interview. Note that
interviewer training has been shown to dramatically improve the competence of
interviewers.
• Use Presentation Slide 6-43: Ground Rules for Employment Presentation
Interviews as a basis for discussion of the ten ground rules Slide 6-43
for employment interviewers. Although this is a cookbook
approach, it does serve to make the student aware that the employment interview is
more than a friendly conversation.
D. Diversity Management: Are Your Questions Legal?
• The subject of pre-employment questioning is complex. Direct or indirect questions
relating to race, color, age, religion, gender, national origin, or marital status can be
hazardous for the employer.
• Employers typically provide interviewers with instructions on how to avoid poten-
tially discriminatory questions in the interview.
• Using Highlights in HRM 5 as a guide, have students explain Highlights in
how to obtain the information needed and at the same time avoid HRM 5
questions that could be considered discriminatory.
V. REACHING A SELECTION DECISION

A. Summarizing Information about Applicants
Use Figure 6.10: “Can-Do” and “Will-Do” Factors in Selection
Decisions to emphasize the importance of sorting out ability versus Figure 6.10
motivational aspects of performance. Note to students that perfor-
mance is a multiplicative function of both “can-do” and “will-do” factors. If either is low,
the result is likely to be poor performance.
B. Decision-Making Strategy
The strategy used for making personnel decisions for one category of jobs may differ from
that used for another category. Discuss the six points in the textbook that are typical of
the types of questions that HR staffs must consider.
1. Clinical Approach—Point out the pitfalls of the clinical approach to decision making.
2. Statistical Approach—This is a more objective approach that permits combining
by statistical formulas the most valid information obtained in the selection process.
a. Compensatory model. With this approach, a person’s high score on one predictor
can make up for a low score on another.
b. Multiple cutoff model. With this approach, individuals must achieve some mini-
mum level of performance on each test or predictor. A score below this level on
even one test would be enough to eliminate the individual from consideration.
c. Multiple hurdle model. Similar to the multiple cutoff approach, the multiple
hurdle approach requires that individuals achieve a threshold level on each
predictor. However, in this case the tests are sequenced over time. Candidates who
make it through the first phase are assessed further at each successive stage. After
several assessment phases, the final candidate(s) is/are chosen.
• Selectivity is usually expressed in terms of a selection ratio, the ratio of the number
of individuals selected to the total number of applicants. Emphasize the importance
of being selective and ask students to identify jobs for which it would be more or
less important to be selective.
• Selection ratio, validity, and proportion of persons judged successful by current selec-
tion methods are all related to the contribution that a predictor will make to the improve-
ment of a given selection process.
• Use Figure 6.11 in the textbook to illustrate the effects of raising
Figure 6.11
and lowering the cutoff score. In this illustration the test has a
fairly high validity. Note that the criterion is dichotomized into
Satisfactory/Unsatisfactory. Emphasize that the use of the test serves to maximize the
selection of probable successes and to minimize the selection of probable failures.
Reemphasize that nothing is certain. We are talking about probabilities.
C. Final Decision
• The most promising applicants are referred to departments having vacancies. Usually
line managers and supervisors make the final selection decisions.
• Notifying applicants of the final decision and making job offers are generally the
responsibility of the HR department. Emphasize the importance of training managers
and supervisors so their role in the selection process does not negate the work of
those in the HR department.
Designing Selection Criteria and Methods

HRM EXPERIENCE
The methods used to tap qualities will most likely vary with the type of job the
students choose. Students should choose methods that will offer valid information
on how well the person will perform the job. They should also be aware of using
methods that will help them get a person-organization fit. After they have done the
“reality check,” help them understand that the company may not be using the correct
methods either. If so, why would the company choose the methods it is currently
using? Have your students check the assumptions people may make when deciding
on these hiring methods.
ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

1. Job knowledge tests and job sample tests are often more acceptable to examinees because they
appear to be job related. The content of intelligence tests and other types of tests does not appear
to be related to many jobs.
2. In the clinical approach, the decision maker reviews all of the data and makes a decision based
on an understanding of the job and experience in hiring personnel. The statistical approach involves
identifying the most valid predictors and weighing them through statistical methods. The statis-
tical approach has been found superior to the clinical approach. Its superiority is probably because
it is objective, free from bias, and appropriate weight is given to the different predictor infor-
mation. Both methods are often used in selecting individuals for a particular job.
3. When applicants furnish the names of individuals to contact, they probably will give the names
of those who are likely to make favorable comments about them. Employers are increasingly
reluctant to make written unfavorable comments for fear of legal action. Using the telephone to
check references and asking specific questions about the individual’s performance and work
habits are possible solutions to the problem.
4. The major types of employment interviews described are nondirective, structured, situational,
behavioral description, panel, computerized or online, and video or digitally recorded
interviews. The major difference among them is the degree of structure or control, with the
nondirective type having minimal structure. In the structured interview, the interviewer adheres
closely to a highly detailed set of questions on specially prepared forms. Students will have
different choices for different reasons.
5. The term criterion refers to measures of job performance such as production records, supervi-
sory ratings, training outcomes, and other measures of job success. Students may give several
examples of criteria. It is important that they understand that criterion, used in this context, refers
to a measure of job success and not to the various types of predictor information (education, job
experience, and so on).
6. Personality tests have generally proven to have low validity in personnel selection situations.
They also pose ethical problems, such as invasion of privacy. Their use could be justified for situ-
ations in which validity studies show that they contribute significantly to the selection process.
NOTES FOR END-OF-CHAPTER CASE STUDIES

Case Study 1: Tapping Unused Resources in Lean Times
1. There are a number of strategic advantages in the Nordenia approach to training. Rather than layoff
experienced workers due to the slowdown, their time was used to create future productivity for
the company. The value of the experienced skilled workers was also expanded by focusing their
attention on what skills are the really the most needed by new workers. This helps them to become
more effective in their own work as well as become more ready for future advancement them-
selves. The PowerPoint training itself may have provided new skills to some of these workers.
2. There should always be a concern about how a rather labor-intensive program will function when
the coaches and supervisors are under pressure to create output. On the other hand, checklists of
key skills to be learned may well take less time then trying to figure out how to pass very inexpe-
rienced new employees around enough that they gain enough experience to be useful.
Case Study 2: Kodak Gets the Picture in Executive Education

1. From the point of view of organization analysis, Kodak is trying to match the flexibility of its
training (and learning opportunities) to the flexibility needed in the firm. Off-the-shelf materials
are out. Agility is replacing stability in the organization and that is reflected in the executive
education arena as well. From the standpoint of task analysis, it appears that the team orientation,
collective thinking, and experimentation needed in executive jobs is reflected in the content of
training. It appears that no real person analysis has been done. Perhaps it is the case that Kodak
believes all executives need to go through these programs in order to change the culture of the
company as well as infuse the knowledge and skills of managers.
2. The three new programs imbed several principles of learning, including goal setting (Digital
Executive), meaningfulness (Prosperity Game, Digital Executive, Future of the Company), prac-
tice (Prosperity Game, Digital Executive), individual differences (Future of the Company), and
feedback (Prosperity Game, Digital Executive).
3. Evaluating these programs is difficult, of course. And Kodak readily acknowledges that the bene-
fits are hard to quantify. Reactions are good (executives are energized and rated the programs
highly), and behaviors of executives have changed as well. We don’t know exactly what or how
much they have learned, so the effects may be mostly motivational. We also don’t know if the
programs had any impact on results (productivity, innovation, effectiveness, and so on).
There is no easy answer to the question of whether the programs should be evaluated based
on profitability. Certainly the objective of such an initiative is to improve organizational perfor-
mance, so executives should work to understand the linkage.

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chapter

CHAPTER LEARNING OBJECTIVES

Explain the objectives of the personnel selection process.

Identify the various sources of information used for personnel selection.

Compare the value of different types of employment tests.

Illustrate the different approaches to conducting an employment interview.

Describe the various decision strategies for selection.

C. The Selection Process

• Most students will probably have some knowledge of

III. EMPLOYMENT TESTS

IV. THE EMPLOYMENT INTERVIEW

C. Guidelines for Employment Interviewers

V. REACHING A SELECTION DECISION

Designing Selection Criteria and Methods

ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

NOTES FOR END-OF-CHAPTER CASE STUDIES

Case Study 2: Kodak Gets the Picture in Executive Education

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