Hiring

I. Major issues in Hiring / Selecting

II. “New Recruits” Case
III. Overview of Selection Mechanisms /
Hiring Options
IV. Rights

Session 6 1
Pratt (2006)
Hiring: Major Issues
1. Reliability: does the selection technique
yield similar results over time (is it
consistent)?

2. Validity: does the selection technique

accurately measure those aspects of the
applicant that are likely to be associated
with job performance?

3.

Session 6 2
3 Types of Validity
 Criterion-related: how well the selection
procedure predicts on-the-job success. Measured
via correlations and ranges from -1 to +1 (.5 to .
6 is very high). Most often used by EEOC.
 Content: how well a selection procedure directly
samples the KSAs (knowledge, skills, and
abilities) needed to do the job. Normally assessed
via experts.
 Construct: how well the selection procedure
compares to other selection procedures (e.g.,
company IQ test with scores on standardized
tests). Measured via correlations.

Session 6 3
 SG Cowen: The New
Recruits

Session 6 4
Pratt (2006)
SG Cowen: Case Overview

Session 6 5
SG Cowen: Discussion Questions

Session 6 6
SG Cowen: Debrief

Session 6 7
 Hiring Options

Option Strengths Weaknesses

Resume / • provides a wealth of verifiable

information (bio data validity .35)
Applications • can be inexpensive (depending
on level of detail)

Letters of • can provide useful information – • often inflated

especially if (a) see patterns • reference checks
Rec. across letters; (b) ask for many validity is
letters; and/or (c) organizations moderate (.26)
use their qualified privilege to give
accurate information

Interviews
To be covered 10/2 – 10/11

Session 6 8
 Hiring Options: Selection Tests
(Kulik, 2004)

Option Cost / Criterion-Related Other Issues

Applicant Validity
Cognitive • predicts success on most jobs
Ability (e.g., SAT) $5-$100 • does not measure some core job
attributes (e.g. EI)
•

Work Sample $50-$500 .44 • may provide realistic job preview

• expensive (tailored to each job:
content, scoring, and assessing)

Integrity / • somewhat immune to “presentation”

$9-$100 .18 effects
Honesty • may be tracked on the phone via
response latency

Personality $1-$100 .02-.15

(and more) To be covered on 9/27
(“Big 5”)

Session 6 9
3 Dimensions of Cognitive Tests
(Noe, et al., 2006)

1. Verbal comprehension: ability to

understand and use written & spoken
language

2. Quantitative ability: speed and accuracy

in solving arithmetic problems

3. Reasoning ability: capacity to invent

solutions to many diverse problems

Session 6 10
Cognitive Tests
 Often has adverse impact due to race.

“In the past, differences between the means for

blacks and whites meant that an average black
would score at the 16th percentile of the distribution
of white scores.” (Noe, et al., p. 240).

 While racial norming has been banned, “banding”

has become more popular. Banding involves
treating people with similar scores the same
(e.g., 90-100 gets a ‘4’. When scores are tied,
preference is given to the minority candidate).
Practice is controversial.

Session 6 11
Other Tests
 Physical ability tests: can be used to predict
performance or predict occupational injuries (strength
tests often have adverse impact)

 Polygraph tests: severely restricted by the Employee

Polygraph Prediction Act (e.g., can use if manufacture
controlled substances, do security, etc.)
 Graphology (used by 85% of French Companies): low
validity (.02)
 Management Assessment Centers: often used to
assess management potential (& train managers) via a
variety of tests and realistic managerial simulations
(AT&T)
Session 6 12
Management Assessment Centers:
Typical Tasks (Dessler, 2005)


 Leaderless group discussion: put group of

individuals together and ask them to make a
decision. Evaluated on interpersonal skills,
leadership, etc.
 Management games: problem solving through
simulations
 Individual presentation: to assess persuasiveness
and presentation skills
 Objective tests: (e.g. personality, mental ability)
 Interviews

Session 6 13
Rights
 Test takers have rights to privacy under
APA standards for educational and
psychological testing (but these guide
psychologists and are not legally
enforceable)

 Fair Credit Reporting Act (and others)

increases likelihood that applicant can
view negative reports and be given the
right to dispute them

Session 6 14
Looking Back: Other BHC Lessons
 When assessing fit, need to look at job, but also culture
and goals
 Remember what resumes are good for (and what they
cannot tell you).
 We “fill in” information that is not there
 Helps form first impression

 Recruiting is a skill (and experts are often the least

good at explaining what they do)
 Be cautious about similarity between recruits and
applicants
 Gender (adverse impact)
 Educational background (may stifle innovation)

Session 6 15
Looking Ahead
 Alternatives to selection (9/18)

 Hiring for culture fit (9/20)

 “Off-roading” – managing culture (9/25)

 Biases / barriers to interviewing and hiring (9/27)

 Types of interviewing (10/2 & 10/4)

 Interviewing skills: negotiation (10/9 & 10/11)

Session 6 16
Any Questions?

Session 6 17