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PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter 6 Employee Testing and Selection Part Two | Recruitment and Placement Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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PowerPoint Presentation by Charlie CookThe University of West Alabama

PowerPoint Presentation by Charlie CookThe University of West Alabama

Chapter 6

Employee Testing and Selection

Chapter 6

Employee Testing and Selection

Part Two | Recruitment and PlacementPart Two | Recruitment and Placement

Copyright © 2011 Pearson Education, Inc. publishing as Prentice HallCopyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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WHERE WE ARE NOW…WHERE WE ARE NOW…

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1.1. Explain what is meant by reliability and validity.Explain what is meant by reliability and validity.

2.2. Explain how you would go about validating a test.Explain how you would go about validating a test.

3.3. Cite and illustrate our testing guidelines.Cite and illustrate our testing guidelines.

4.4. Give examples of some of the ethical and legal Give examples of some of the ethical and legal considerations in testing.considerations in testing.

5.5. List eight tests you could use for employee selection List eight tests you could use for employee selection and how you would use them.and how you would use them.

6.6. Give two examples of work sample/simulation tests.Give two examples of work sample/simulation tests.

7.7. Explain the key points to remember in conducting Explain the key points to remember in conducting background investigations.background investigations.

LEARNING OUTCOMESLEARNING OUTCOMES

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Chapter 6 outlineEmployee Testing and Selection

1. Why careful selection is important 2. Basic testing concepts3. Test Takers’ Individual Rights and Test security4. Legal Privacy Issues 5. Types of Tests6. Work samples and Simulations7. Background Investigation and other selection

methods8. The Polygraph and Honesty Testing9. Honesty Testing Programs

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1-Why Careful Selection is 1-Why Careful Selection is ImportantImportant

Organizational performance

Costs of recruiting and hiring

The Importance of Selecting the Right

Employees

Legal obligations and liability

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Avoiding Negligent Hiring ClaimsAvoiding Negligent Hiring Claims• Carefully scrutinize information on employment Carefully scrutinize information on employment

applications.applications.

• Get written authorization for reference checks, and Get written authorization for reference checks, and check references.check references.

• Save all records and information about the applicant.Save all records and information about the applicant.

• Reject applicants for false statements or conviction Reject applicants for false statements or conviction records for offenses related to the job.records for offenses related to the job.

• Balance the applicant’s privacy rights with others’ Balance the applicant’s privacy rights with others’ “need to know.”“need to know.”

• Take immediate disciplinary action if problems arise.Take immediate disciplinary action if problems arise.

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2- Basic Testing Concepts2- Basic Testing Concepts• ReliabilityReliability

Describes the consistency of scores obtained by the same Describes the consistency of scores obtained by the same person when retested with the identical or alternate forms of the person when retested with the identical or alternate forms of the same test.same test.

Are test results stable over time?Are test results stable over time? If person scores 90 in one test on Monday and 130 when If person scores 90 in one test on Monday and 130 when

retested on Tuesday.retested on Tuesday.

• ValidityValidity Indicates whether a test is measuring what it is supposed to be Indicates whether a test is measuring what it is supposed to be

measuring.measuring. Does the test actually measure what it is intended to measure?Does the test actually measure what it is intended to measure? Eg you want to measure a board of 3 feet. But the measuring Eg you want to measure a board of 3 feet. But the measuring

stick is showing 3.5 feet. So this would be problem of validity.stick is showing 3.5 feet. So this would be problem of validity.

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FIGURE 6–1 A Slide from the Rorschach Test

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2.1 Types of Validity2.1 Types of Validity

Criterion validity Content validity

Types of Test Validity

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2.3 -Evidence-Based HR: How to 2.3 -Evidence-Based HR: How to Validate a TestValidate a Test

1

Relate Your Test Scores and Criteria: scores versus actual performance

Choose the Tests: test battery or single test(to measure aggressiveness, numerical abilities etc)

Steps in Test Validation

Analyze the Job: predictors and criteria (success of job e.g. production related or verbal qualities)

Administer the Test: concurrent(on job test compare with current performance) or predictive validation(application of test before hiring check performance and test results.

2

3

4

Cross-Validate and Revalidate: repeat Steps 3 and 4 with a different sample

5

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FIGURE 6–2 Examples of Web Sites Offering Information on Tests or Testing Programs

• www.hr-guide.com/data/G371.htmProvides general information and sources for all types of employment tests

• http://ericae.netProvides technical information on all types of employment and nonemployment

• tests.www.ets.org/testcollProvides information on over 20,000 tests

• www.kaplan.comInformation from Kaplan test preparation on how various admissions tests work

• www.assessments.bizOne of many firms offering employment tests

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FIGURE 6–3 Expectancy Chart

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.

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TABLE 6–1 Testing Program Guidelines

1. Use tests as supplements.

2. Validate the tests.

3. Monitor your testing/selection program.

4. Keep accurate records.

5. Use a certified psychologist.

6. Manage test conditions.

7. Revalidate periodically.

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3-Test Takers’ Individual 3-Test Takers’ Individual Rights and Test SecurityRights and Test Security• Under the APA’s standard for educational and Under the APA’s standard for educational and

psychological tests, test takers have the following psychological tests, test takers have the following rights:rights: The right to the confidentiality of test results.The right to the confidentiality of test results.

The right to informed consent regarding use of these results.The right to informed consent regarding use of these results.

The right to expect that only people qualified to interpret the The right to expect that only people qualified to interpret the scores will have access to them, or that sufficient information scores will have access to them, or that sufficient information will accompany the scores to ensure their appropriate will accompany the scores to ensure their appropriate interpretation.interpretation.

The right to expect the test is fair to all. For example, no one The right to expect the test is fair to all. For example, no one taking it should have prior access to the questions or taking it should have prior access to the questions or answers.answers.

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4-Legal Privacy Issues4-Legal Privacy Issues• DefamationDefamation

Libeling or slandering of employees or former employees Libeling or slandering of employees or former employees by an employer.by an employer.

• Avoiding Employee Defamation SuitsAvoiding Employee Defamation Suits

1.1. Train supervisors regarding the importance of employee Train supervisors regarding the importance of employee confidentiality.confidentiality.

2.2. Adopt a “need to know” policy.Adopt a “need to know” policy.

3.3. Disclose procedures impacting confidentially of information Disclose procedures impacting confidentially of information to employees.to employees.

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How Do Employers Use Tests at How Do Employers Use Tests at Work?Work?• Major Types of TestsMajor Types of Tests

Basic skills testsBasic skills tests

Job skills testsJob skills tests

Psychological testsPsychological tests

• Why Use Testing?Why Use Testing?

Increased work demands = more testingIncreased work demands = more testing

Screen out bad or dishonest employeesScreen out bad or dishonest employees

Reduce turnover by personality profilingReduce turnover by personality profiling

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FIGURE 6–4 Sample Test

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Computerized and Online TestingComputerized and Online Testing• Online testsOnline tests

Telephone prescreeningTelephone prescreening Offline computer testsOffline computer tests Virtual “inbox” testsVirtual “inbox” tests Online problem-solving testsOnline problem-solving tests

• Types of TestsTypes of Tests Specialized work sample testsSpecialized work sample tests Numerical ability testsNumerical ability tests Reading comprehension testsReading comprehension tests Clerical comparing and checking testsClerical comparing and checking tests

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5-Types of Tests5-Types of Tests

Cognitive abilitiesIntelligence test•Specific Cognitive Abilities(

Motor and physical abilities

Personality and interestsWhat personality Test MeasureThe Big FiveCaveatsEffectivenessInterest Inventories

What Different Tests Measure

Currentachievement

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FIGURE 6–5 Type of Question Applicant Might Expect on a Test of Mechanical Comprehension

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The “Big Five”The “Big Five”

Extraversion

Emotional stability/

Neuroticism

AgreeablenessOpenness to experience

Conscientiousness

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Work Samples and Work Samples and SimulationsSimulations

Work samples

Management assessment

centers

Video-based situational

testing

Measuring Work Performance Directly

Miniature job training and evaluation

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FIGURE 6–7 Example of a Work Sampling Question

Checks key before installing against:

___ shaft score 3

___ pulley score 2

___ neither score 1

Note: This is one step in installing pulleys and belts.

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TABLE 6–2 Evaluation of Assessment Methods on Four Key Criteria

Assessment Method Validity Adverse Impact Costs (Develop/Administer) Applicant Reactions

Cognitive ability tests High High (against minorities) Low/low Somewhat favorable

Job knowledge test High High (against minorities) Low/low More favorable

Personality tests Low to moderate

Low Low/low Less favorable

Biographical data inventories Moderate Low to high for different types

High/low Less favorable

Integrity tests Moderate to high

Low Low/low Less favorable

Structured interviews High Low High/high More favorable

Physical fitness tests Moderate to high

High (against females and older workers)

High/high More favorable

Situational judgment tests Moderate Moderate (against minorities)

High/low More favorable

Work samples High Low High/high More favorable

Assessment centers Moderate to high

Low to moderate, depending on exercise

High/high More favorable

Physical ability tests Moderate to high

High (against females and older workers)

High/high More favorable

Note: There was limited research evidence available on applicant reactions to situational judgment tests and physical ability tests. However, because these tests tend to appear very relevant to the job, it is likely that applicant reactions to them would be favorable.

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Background Investigations andBackground Investigations andOther Selection MethodsOther Selection Methods

• Investigations and ChecksInvestigations and Checks Reference checksReference checks

Background employment checksBackground employment checks

Criminal recordsCriminal records

Driving recordsDriving records

Credit checksCredit checks

• Why?Why? To verify factual information provided by applicantsTo verify factual information provided by applicants

To uncover damaging informationTo uncover damaging information

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Background Investigations and Background Investigations and Reference ChecksReference Checks

Former Employers

Current Supervisors

Written References

Social Networking Sites

Commercial Credit Rating Companies

Sources of Information

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Limitations on Background Limitations on Background Investigations and Reference Investigations and Reference

ChecksChecks

Background Investigations and Reference Checks

Supervisor Reluctance

Employer Guidelines

Legal Issues: Privacy

Legal Issues: Defamation

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Making Background Checks More Making Background Checks More UsefulUseful1.1. Include on the application form a statement for Include on the application form a statement for

applicants to sign explicitly authorizing a background applicants to sign explicitly authorizing a background check.check.

2.2. Use telephone references if possible.Use telephone references if possible.

3.3. Be persistent in obtaining information.Be persistent in obtaining information.

4.4. Compare the submitted rCompare the submitted réésumsuméé to the application. to the application.

5.5. Ask open-ended questions to elicit more information Ask open-ended questions to elicit more information from references.from references.

6.6. Use references provided by the candidate as a source Use references provided by the candidate as a source for other references.for other references.

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Using Preemployment Information Using Preemployment Information ServicesServices

1

Notice of adverse action to applicant/employee

Employer certification to reporting agency

Acquisition and Use of Background Information

Disclosure to and authorization by applicant/employee

Providing copies of reports to applicant/employee

2

3

4

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The Polygraph and Honesty TestingThe Polygraph and Honesty Testing• Employee Polygraph Protection Act of 1988Employee Polygraph Protection Act of 1988

Generally prohibits polygraph examinations by all private Generally prohibits polygraph examinations by all private employers unless:employers unless: The employer has suffered an economic loss or injury.The employer has suffered an economic loss or injury. The employee in question had access to the property.The employee in question had access to the property. There is a reasonable prior suspicion.There is a reasonable prior suspicion. The employee is told the details of the investigation, as well The employee is told the details of the investigation, as well

as questions to be asked on the polygraph test itself.as questions to be asked on the polygraph test itself. Private business exceptions:Private business exceptions:

Private security employeesPrivate security employees Employees with access to drugsEmployees with access to drugs Ongoing economic loss or injury investigationsOngoing economic loss or injury investigations

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Honesty Testing Programs: Honesty Testing Programs: What Employers Can DoWhat Employers Can Do• Antitheft Screening Procedure:Antitheft Screening Procedure:

Ask blunt questions.Ask blunt questions. Listen, rather than talk.Listen, rather than talk. Do a credit check.Do a credit check. Check all employment and personal references.Check all employment and personal references. Use paper-and-pencil honesty tests and psychological tests.Use paper-and-pencil honesty tests and psychological tests. Test for drugs.Test for drugs. Establish a search-and-seizure policy and conduct searches.Establish a search-and-seizure policy and conduct searches.

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FIGURE 6–9 “The Uptight Personality”

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Physical ExaminationsPhysical Examinations• Reasons for preemployment medical examinations:Reasons for preemployment medical examinations:

To verify that the applicant meets the physical requirements of To verify that the applicant meets the physical requirements of the position.the position.

To discover any medical limitations to be taken into account in To discover any medical limitations to be taken into account in placing the applicant.placing the applicant.

To establish a record and baseline of the applicant’s health for To establish a record and baseline of the applicant’s health for future insurance or compensation claims.future insurance or compensation claims.

To reduce absenteeism and accidents.To reduce absenteeism and accidents.

To detect communicable diseases that may be unknown to the To detect communicable diseases that may be unknown to the applicant.applicant.

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Substance Abuse ScreeningSubstance Abuse Screening• Types of ScreeningTypes of Screening

Before formal hiringBefore formal hiring After a work accidentAfter a work accident Presence of obvious behavioral symptomsPresence of obvious behavioral symptoms Random or periodic basisRandom or periodic basis Transfer or promotion to new positionTransfer or promotion to new position

• Types of TestsTypes of Tests UrinalysisUrinalysis Hair follicle testingHair follicle testing

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Substance Abuse Screening IssuesSubstance Abuse Screening Issues

Safety:impairment vs.

presence

Recreational use vs. addiction

American with Disabilities Act

Drug Free Workplace Act of

1998

Intrusiveness of testing

procedures

Accuracy of tests

Ethical and Legal Issues

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FIGURE 6–10 Procedure in Complying with Immigration Law

1. Hire only citizens and aliens lawfully authorized to work in the United States.

2. Advise all new job applicants of your policy.

3. Require all new employees to complete and sign the verification form (the “I-9 form”) designated by the Immigration and Naturalization Service (INS) to certify that they are eligible for employment.

4. Examine documentation presented by all new employees, record information about the documents on the verification form, and sign the form.

5. Retain the form for three years or for one year past the employment of the individual, whichever is longer.

6. If requested, present the form for inspection by INS or Department of Labor officers. No reporting is required.

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Improving Productivity Through HRIS: Improving Productivity Through HRIS: Using Automated Applicant Tracking Using Automated Applicant Tracking

and Screening Systems (ATS)and Screening Systems (ATS)

“Knock out” applicants who do not meet job requirements

Allows employers to extensively

test and screen applicants online

Benefits of Applicant Tracking Systems

Can match “hidden talents” of applicants to

available openings

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FIGURE 6–11 Checklist: What to Look For in an Applicant Tracking System (ATS)

The employer thinking of adopting an ATS should seek one that meets several minimum functionality requirements. Among other things, the ATS should be:

• Easy to use.

• Capable of being integrated into the company’s existing HRIS platform, so that, for instance, data on a newly hired candidate can flow seamlessly into the HRIS payroll system.

• Able to capture, track, and report applicant EEO data.

• Able to provide employee selection performance metrics reports, including “time to fill,” “cost to hire,” and “applicant source statistics.”

• Able to facilitate scheduling and tracking of candidate interviews, email communications, and completed forms, including job offers.

• Able to provide automated screening and ranking of candidates based upon job skill profiles.

• Able to provide an internal job posting service that supports applications from current employees and employee referral programs.

• Able to cross-post jobs to commercial job boards such as www.monster.com.

• Able to integrate the ATS job board with your company’s own Web site; for instance, by linking it to your site’s “careers” section.

• Able to provide for requisition creation and signoff approvals.

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K E Y T E R M S

reliability

test validity

criterion validity

content validity

expectancy chart

interest inventory

work samples

work sampling technique

management assessment center

situational test

video-based simulation

miniature job training and evaluation

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