The purpose of Chapter 6 is to explain how to use varioustools to select the best

candidates for thejob. The main topics well cover include selection, testing,background
and reference checks, ethicaland legal questions, types of tests,and work samples and
simulations.

By the time we finish this chapter, you will be able to:

1. Explain what is meant by reliability and validity.
2. Explain how you would go about validating a test.
3. Cite and illustrate our testing guidelines.
4. Give examples of some of the ethical and legal considerations in testing.

In addition, you will be able to:

5. List eight tests you could use for employee selection, and how you would use them.
6. Give two examples of work sample/simulation tests.
7. Give examples of some of the ethical and legal considerations in testing.

Careful selection is important for three main reasons: performance, costs, and legal
obligations.

First, your own performance always depends on your subordinates.

Second, it is important because its costly to recruit and hire employees. As the opening
story in this chapter indicated, Googles hiring process was streamlined due to the
amount of time taken for interviews. Time spent by employees equates to the costs of
not being productive in their jobs.
Third, its important because mismanaging hiring haslegal consequences.
Person-job fit refers to identifying the knowledge, skills, abilities (KSAs), and
competencies that are central
to performing the job. Then we must match the KSAs to the prospective employees
knowledge, skills, abilities, and competencies.

Now, we will discuss another form of evidence-based HR management, the definition

and use of reliability and validity.

A test is basically a sample of a persons behavior. Using a test (or any selection tool)
assumes the tool is both reliable and valid.

A reliable test is one that yields consistent scores when a person takes two alternate
forms of the test or takes the same test on two or more different occasions.
Validity tells you whether the test is measuring what you think its supposed to be
measuring. Now, lets discuss three types of validity.
Criterion validity involves demonstrating statistically there is a relationship between
scores on a selection procedure and the job performance of a sample of workers. It
means showing that workers who do well on the job also do well on the test.
Content validity shows that the content of aselection procedure is representative of
important aspects of performance on the job.
Constructs representan underlying human trait or characteristic such as
honesty.Construct validity demonstratesthat a selection procedure measures a
construct and that the construct is important for successful job performance.

Measuring reliability generally involves comparing two measures thatassess the same
thing. It is typical to judge a tests reliability in terms of a correlation coefficient (in this
case, a reliability coefficient). Such a coefficient shows the degree to which the two
measures (say, a test score one day and a test score the next day) are related.
A selection test must be valid. Without proof of validity, there is no logical or legally
permissible reason to continue using it to screen job applicants. Remember that a valid
test is one that measures what you intend to measure. A typing test, for example,
clearly would be a valid test of keyboarding skills.

In order for a selection test to be useful, you need evidence that scores on the test
relate in a predictable way to performance on the job. We will now discuss the steps
needed to validate a test.

1. First, analyze the job and write job descriptions and job specifications. Your goal is
to specify the human traits andskills (predictors) you believe are required for job
performance.
2. Next, decide how to test for the predictors and choose the tests. You usually will
base this choice on experience, previous research, and best guesses. You likely
will choose several tests and combine them intoa test battery.
3. One option is to administer the tests to employees currently on the job. You then
comparetheir test scores with their current performance; this is concurrent (at the
same time)validation. Its main advantage is that data on performance are readily
available. Predictive validation is the second and more dependable way to validate
a test. Here you administer the test to applicants before you hire them. Then hire
theseapplicants using only existing selection techniques (such as interviews). You
would not use the results of the newtests. After they have been on the job for some
time, measure their performanceand compare it to their earlier test scores.
4. Next, determine if there is a significant relationship between test scores (the
predictor) andperformance (the criterion). The usual way to do this is to use
statistical testing.
5. Finally, before using the test, you may want to check it by cross-validatingin

other words, by again performing steps 3 and 4 on a new sample of employees.

Remember, validating a test is not complicated, but it does take time and careful
planning. Analyze the job and write job descriptions and specifications. Then choose
how to test for predictors. Let experience, previous research, and best guesses guide
you. You likely will choose several tests and combine them intoa test battery.
To administer the test properly, consider using it with your best performing employees
who currently hold positions you seek to fill. Consider administering the test to
applicants before you hire them. Then hire theseapplicants using your usual selection
techniques (such as interviews) but not the results of the newtests. After they have
been on the job for some time, measure their performanceand compare it to their
earlier test scores.
Next, determine if there is a significant relationship between test scores
andperformance. The usual way to do this is to use statistical analysis.
Finally, before using the test, you may want to check it by cross-validatingin other
words, repeat steps 3 and 4 on a new sample of employees.

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Our testing guidelines will help ensure accurate results and interpretation. Lets talk
about how that works.

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In many cases, certain tests are scored and interpreted by outside professionals. The
results are then provided to the manager for consideration of whom to hire or
promote.
There may be bias in how the test measures the trait it purports to measure. If test
scores indicate that males
perform better in verbal reasoning tasks than do females, when in fact they both
perform equally well, the test is biased. Second, If the test used in college admissions
systematically over predicts the performance of males and underpredicts the
performance of females, *then+ that test functions as a biased predictor.
Utility analysis simply answers the question, Does it pay to use a given test in a
particular situation? In other words, if you use a specific test, will the quality of
individuals selected be better than if you had not used the test?
Validity generalization helps determine if a test is valid in one situation, will it be so in
others. Or, will the test need to be re-validated?Especially for smaller employers,
properly generalizing the validity of a test can be a business lifesaver.

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Use professionals when needed, be aware of potential biased tests, keep costeffectiveness in mind and properly generalize validity findings when testing. Such
actions will make a significant difference in using tests effectively and efficiently.

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While a particular testing action may be legal, it may or may not be ethical. We will now
discuss what to watch for when testing.

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Test takers have rights to privacy and feedback under the American
PsychologicalAssociations (APA) standards. Test takers (your potential future
employees) have the right to expect:
Confidentiality of results
An informed consent opportunity
Only people qualified to interpret the scores will have access to them
The test is fair for all
In terms of privacy, common sense suggests that managers should keep their
knowledge of employees test results private. However, there are also privacy
protections embedded in U.S. and common law.
Testing is used to screen in good employees and also to screen out ones that will not be
successful. A survey conducted by the American Management Association (AMA)
indicated that 41% of companies test applicants for basic skills such as reading.
Computerized online testing is rapidly replacing traditional paper-and-pencil tests. In
some cases, tests may be accessed via smartphones. That is, some tests adapt to the
previous answers provided by the test taker, creating a one-off custom test.

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Remember that all employees and potential employees expect and have the right to
privacy and security. Tests at work are designed to help both the employer and
employee when it comes to promotions and job changes. Note the trend today is
towards more online and computer-based test taking. Such computerized procedures
can help with speed and accuracy.

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We can conveniently classify tests according to whether they measure cognitive

(mental) abilities, motor and physical abilities, personality and interests, or
achievement.Welllook at each.

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Cognitive tests include testing general reasoning ability or intelligence. In addition, they
include tests of specific mental abilities such as memory or inductive reasoning.

Intelligence tests are tests of general intellectual abilities. They measure a range of
abilities, including memory, vocabulary, verbal fluency, and numerical ability.There are
also measures of specific cognitiveabilities, such as deductive reasoning, verbal
comprehension, memory, and numericalability.
You also might need to measure motor abilities, such as finger dexterity, manual
dexterity, and (if hiring pilots) reaction time.
Personality tests measure basic aspects of an applicants personality. You should be a
bit cautious about personality tests, however. In some cases, the tests may be
somewhat difficult to interpret. Legal challenges also may present difficulties. Finally,
some doubt exists as to whether self-reporting on a personality test can predict
performance correctly.
Interest inventories compare ones interests with those of people in various
occupations. And, achievement tests measure what someone has learned.

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Personality tests measure basic aspects of an applicants personality, such as

introversion, stability, and motivation. Some of these tests are projective. The
psychologist presents an ambiguous stimulus (like an inkblot or clouded picture) to the
person. The person then reactsto it. Other personality tests are self-reported:
applicants complete them themselves.
Industrial psychologists often focus on the Big Five personality dimensions:
extraversion, emotional stability/neuroticism,agreeableness, conscientiousness, and
openness to experience.
Personality traits can be predictive since they do often correlate with job performance.
Other traits correlate with occupational success. For example, extraversion correlates
with success in sales and management jobs. However, there are three caveats.
First, projective tests are hard to interpret. An expert must analyze the test takers
interpretations and make conclusions about his or her personality. Second, personality
tests can trigger legal challenges. Third, some dispute that self-reported personality
tests predict performance at all.
Be aware of what you expect from a personality test and the caveats associated with it.
Nonetheless, personality tests can be a valuable source of information.

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Cognitive tests include tests of general reasoning ability and tests of specific mental
abilities.Intelligence tests are tests of general intellectual abilities. There are also
measures of specific cognitiveabilities. You also might need to measure motor abilities
such as reaction times for pilots.
Personality tests measure basic aspects of an applicants personality. Interest
inventories compare ones interests with those of people in various occupations. And,
achievement tests measure what someone has learned.
Industrial psychologists often focus on the Big Five personality dimensions:
extraversion, emotional stability/neuroticism,agreeableness, conscientiousness, and
openness to experience. Personality traits do often correlate with job performance.
Other traits correlate with occupational success. However, there are three caveats:
proper interpretation, legal issues, and disputes over the value of self-reporting.

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With work samples, you present candidates with situations representative of the jobfor
which theyre applying, and evaluate their responses. Lets discuss.

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The basic procedure with work sampling is to select a sample of several tasks crucial to
performing the job, and then test applicants on them.

Situational judgment tests are personnel tests designed to assess an applicants

judgment regarding a situation encountered in the workplace.Situational judgment
tests are effective and widely used.
A management assessment center is a 2- to 3-day simulation in which 10 to 12
candidates perform realistic management tasks such as making presentations. The
behaviors of the candidates are observed by experts who appraise each candidates
leadership potential. Most experts view assessment centers as effective for selecting
management candidates. However, they are quite costly in terms of money and time.
Situational tests require examinees to respond to situations found on the job. Work
sampling and some assessment center tasks fall into this category. Some of the testing
may be video-based.

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Employers increasingly use computerized multimedia candidate assessment tools. We

discussed some of these tools when we considered computerized tests and
management assessment centers.
Like work sampling, miniature job training and evaluation tests applicants with actual
samples of the job. Miniature job training assumes that a candidate who demonstrates
the ability to perform a sample of job tasks will be able to learn and perform the job
itself.
Sometimes, a dose of realism makes the best screening tool. Describing all aspects of
the job, the nature of the working environment and even the company culture helps
create a self-screening tool. In general, applicants who receive realistic job previews are
more likely to turn down job offers if they do not like what they understand the job to
be. Applicants who accept are then more likely to stay on the job.
You may find that, even in large companies, when it comes to screening employees,
youre on your own. The human resource department may work with you to design and
administer screening tests. However, HR may be able to do little more than the
recruiting, prescreening, background checks, and arrange for drugand physical exams. If
HR is not given proper resources, you have even more reason to understand and use
the information we have been discussing.

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Situational judgment tests are used to assess the ability of a job candidate to react
appropriately given a specific situation he or she will encounter on the job.

Management assessment centers are used to determine the abilities of individuals to

perform complex tasks. Typically, such centers are used for management and executive
positions. While cost, time, and the use of professionally trained assessors are potential
issues to consider, most experts agree they are worthwhile.
Situational testing and video-based testing will involve situations that are presented to
a job candidate. Such situations are realistic and typically derive from on-the-job
situations.
Computerized and web-based assessment allows speed and flexibility in the testing
process.
Miniature job training assumes a candidate can learn the job components and perform
them quickly.
Realistic job previews present the candidate with detailed and highly realistic
information about the job and the environment.
Realize, that as a manager, you may or may not have help from the HR department in

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selecting and assessing job candidates. Learning as much as possible about testing
procedures will help in hiring the best candidates. Ultimately, the best candidates are
usually the most productive, thus contributing to your departments performance.

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When hiring candidates, you will want the best ones to come to work for you. Checking
backgrounds will help you make the right decisions. We will examine some of the
ethical and legal implications to consider when hiring.

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One of the easiest ways to avoid hiring mistakes is to check the candidates background
thoroughly. Doing so is cheap and (if done right) useful. There are two main reasons to
check backgroundsto verify the applicants information and to uncover damaging
information.
In terms of effectiveness, however, most managers dont view references as very
useful. This makes sense, given that few employers will talk freely about former
employees for legal or ethical reasons. That is just the tip of the iceberg, however.
Being sued for defamation is the real danger. First-line supervisors and managers, not
just employers, are potentially at risk. As a rule, only authorized managers should
provide information.
Most employers at least try to verify an applicants position and salary with his or her
current or former employer by phone. Others call the applicants current and previous
supervisors for information.

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More employers are Googling applicants or checking social networking sites. Googling
is probably safe enough, but checking social networking sites raises legal issues. Your
best strategy to protect your company (and yourself) is to advise a job candidate that
your policies require performing such checks. The applicant, of course, may refuse. In
that case, you may not wish to pursue a particular candidate further.
Information services use databases to access information about matters such as
workers compensation and credit histories. Before requesting reports, the employer
must disclose to the applicant or employee that a report will be requested. The
employer must certify to the reporting agency that the employer will comply with the
federal and state legal requirements. Under federal law, the employer also must
provide copies of the report to the applicant or employee if requested.
Some firms still use the polygraph (or lie detector) for honesty testing, although the law
severely restricts its use. Federal agencies (such as the FBI) may use such devices for
hiring decisions. Paper-and-pencil tests also can be used to check for honesty.
Graphology is the use of handwriting analysis to determine the writers basic
personality traits. Graphology thus has some resemblance to projective personality
tests, althoughgraphologys validity is highly suspect

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While perhaps no more valid than graphology, some employers are using so-called
human lie detectors. These are experts who claim to be able to identify lying just by
watching candidates.
Once the employer extends the person a job offer, a medical exam is often the next
step in the selection process. In addition, many employers conduct drug screenings.
The most common practice is to test candidates just before theyre formally hired.
Some companies advise the candidate that a job offer is contingent upon successful
completion of a drug screening test. Drug testing, while ubiquitous, is neither as simple
nor effective as it might first appear since no drug test is foolproof. Also, tests for drugs
only show whether drug residues are present, not if they will impact the individual in
the workplace. Drug testing raises legal issues, too. Several federal (and manystate)
laws affect workplace drug testing.
Employees hired in the United States must prove they are eligible to work in the United
States. Employers should ask a person theyre about to hire whether he or she is a U.S.
citizen or an alien lawfully authorized to work in the United States.
Most employers also use their applicant tracking systems (ATS) or Human Resource
Information Systems (HRIS) to improve productivity. In some cases, an ATS is used to
knock out applicants who dont meet minimum, nonnegotiable job requirements.
Employers also use ATS to test and screen applicants online. This includes skills testing

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(in accounting, for instance), cognitive skills testing and even psychological testing.

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There are two main reasons to check backgroundsto verify the applicants
information and to uncover damaging information. You, as a manager must be
concerned with potential defamation and privacy issues. Remember, checking social
networking sites raises legal issues.
Information services use databases to access information.

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Some firms still use the polygraph (or lie detector) for honesty testing. Graphology is
the use of handwriting analysis to determine the writers basic personality traits but
presents reliability and validity issues. Some employers are using so-called human lie
detectors.
Two other considerations are the uses of medical exams and drug screenings. Final job
offers may be made contingent upon successful completion of these two tests.
Employees hired in the United States must prove they are eligible to work in the United
States.
Finally, Human Resource Information Systems (HRIS) may be used in tracking
candidates as well as maintaining employee records. An Applicant Tracking System
(ATS) is usually a component of an effective HRIS. Such a system may be used to
exclude candidates who dont meet the minimum job requirements. An HRIS also will
be used to maintain records for internal employee tracking and external reports such as
those for EEOC reporting.

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