1.

This is a branch of psychology that

involves the analysis of jobs, recruitment,
selection and compensation of human
resources as well as training and
performance evaluation.
A. Industrial Psychology
B. Organizational Psychology
C. Industrial/Organizational Psychology
D. Personnel Psychology
2. Which of the following statements fall under
the study of human factors?
A. Determining which employee to promote or
remove
B. Arranging the layout of the office for
maximum efficiency
C. Giving surveys to the employees to determine
their attitude towards the current administration
D. Creating a counseling program for the
employees
 Industrial/Organizational Psychology

• Application of the principles of psychology

to the workplace
• Aims to enhance the dignity and performance
of human beings, and the organizations that
they work in
• Lesser emphasis on processes to run an
organization (finance, marketing,
advertising)
 Personnel Psychology
• Job analysis, recruitment, selection,
compensation, training and performance
evaluation

Organizational Psychology
• Leadership, job satisfaction, employee
motivation, communication, conflict
management, organizational change and group
dynamics

Human Factors / Ergonomics

• Workplace design, human-machine interaction
and efficiency, fatigue and stress
3. He is considered as the Father of Industrial
Psychology.
A. Walter Dill Scott
B. Henry Ford
C. Hugo Munsterberg
D. Frederick Taylor
4. The pioneer/s of using scientific principles to
increase efficiency and reduce fatigue by
studying the motions of workers.
A. Lillian and Frank Gilbreth
B. Henry Ford
C. Frederick Taylor
D. Elton Mayo and colleagues
BRIEF HISTORY
 BEGINNINGS OF I/O PSYCHOLOGY

1903
1910 1911
Walter Dill
Hugo Walter Dill
Scott authored
Munsterberg Scott authored
Theory of
authored Increasing
Advertising
Psychology and Human
(psychology
Industrial Efficiency in
was first applied
Efficiency Business
to business)
 WWI
First big
impact in
testing recruits
(Army Alpha/
Beta)
Scientific Management
by Frederick Taylor
- scientific principles
could be applied in the
industrial setting
- ‘one best method’ to
doing a task (Time and
Motion Studies)
- selection of workers
based on abilities and
the use of tools
 Frank and Lillian Gilbreth
- Colleagues of Taylor, used time and
motion studies to improve productivity
and reduce fatigue
 Hawthorne Studies
by Elton Mayo
- Effects of lighting,
temperature, work
schedules, management
styles etc. on
performance
Hawthorne Effect -
tendency of workers to
perform better when they
receive attention from
supervisors
5. These are references read and written by
professionals and experts in a specific industry
that contain the latest developments and
researches.
A. Journals
B. Trade Magazines
C. Bridge Publications
D. Industry Tabloids
 4 TYPES OF PERIODICALS/ LITERATURE:
A. JOURNALS – Direct reporting of results
and findings from a research study
B. BRIDGE PUBLICATIONS – Professors
write about topics that are of interest
to practitioners (bridge the gap
between the academe and the
practitioner)
C. TRADE MAGAZINES – easy-to-read
articles written by experts /
professionals for practitioners about
the latest researches
D. MAGAZINES – Articles geared towards
entertainment
6. Gerald is the supplier of ice cream machines to fast
food chains like Wackdonald’s and Jellybee. He chooses
not to mention to his clients that his products become
slow and defective within 3 years of use. He made this
decision to avoid losing clients to competitors even if he
feels bad that his clients will lose money. What type of
dilemma is Gerald having?
A. Type A
B. Type B
C. Type AB
D. Type O
High level of uncertainty of right and wrong
No best solution
Both +/- consequences to a decision

TYPE A DILEMMA

TYPE B DILEMMA

Clearer difference between right and wrong

Choose most advantageous solution
‘rationalizing dilemmas’
7. Coulson is tasked with monitoring and interviewing
the employees. He writes down the tasks that they are
doing, the manner in which they are performing them
and the machines and tools that are being used. He
also asks the employees what requirements are needed
to be able to do their job. What is he doing?
A. Task analysis
B. Job evaluation
C. Performance Evaluation
D. Job analysis
JOB ANALYSIS
JOB ANALYSIS

• Process of determining the tasks and

requirements of each job, the
conditions under which they are
performed and the competencies
needed to perform them

• Foundation of almost all human

resource activities
8. Which of the following will not result from
what Coulson is doing?
A. Training Program
B. Recruitment Ad
C. Employee Compensation
D. NOTA
IMPORTANCE/USE OF JOB ANALYSIS:

1. Job Description
2. Employee Selection
3. Training
4. Personpower Planning
5. Performance Appraisal
6. Job Classification
7. Job Evaluation
8. Job Design
9. Compliance with Legal Guidelines
10.Organizational Analysis
9. Which of the following statements is an example of the Peter
Principle?
A. Marshall knows he’s a dope (good) rapper but he’s afraid of
being the greatest. When he’s on stage he often chokes and vomits
the spaghetti his mom made him.
B. Stan is a very good public relations manager and does not fail
to respond to all the fan mail his employer gets. However when he
gets promoted to being a private assistant, he gets easily frustrated
and performs poorly.
C. Em knows that his boss, Dre, doesn’t believe in him. This
always affects him emotionally and he performs poorly as a result.
D. ‘Shady’ and ‘Slim’ always hype each other up before going on
stage. They perform better when they are together and always fail
to deliver when separated.
 STEPS IN CONDUCTING A JOB ANALYSIS
STEP 1: IDENTIFY TASKS PERFORMED
- Identify tasks, tools and equipment used
and the conditions of the job
a) Gather existing information
b) Interview Subject Matter Experts
- People who are knowledgeable about
the job such as incumbents, supervisors,
customers and management
c) Observe Incumbents
d) Job Participation
STEP 2: WRITE TASK STATEMENTS

- A properly written task statement must

contain an action (what is done) and an
object (to which the action is done).
- Also include where, how, why and when

Good task statement:

Deliver food packages to customer’s address
using a company vehicle in not more than 45
minutes after the order has been made.

Bad task statement:

Delivers
STEP 3: RATE TASK STATEMENTS
Task Analysis - Rate task statement based on
frequency, importance and criticality of the task

STEP 4: DETERMINE ESSENTIAL KSAO

• KNOWLEDGE - body of knowledge needed to
perform a task
• SKILLS - proficiency to perform a learned task
• ABILITIES - basic capacity for performing a
wide range of tasks, acquiring knowledge or
developing skills
• OTHERS - personality and other tangible factors
10. Kelly is a sharpshooter for the military.
Before being assigned to the job, his visual
perception, visual acuity and hand-eye
coordination was determined first. What
competencies are these?
A. Abilities
B. Skills
C. Physical Adeptness
D. General Requirements
 JOB DESCRIPTION
• Short summary of a job usually 2 – 5 pages long
A. JOB TITLE
– Must be an accurate label that describes the
nature of the job
- Gives worker identity
B. BRIEF SUMMARY
– paragraph briefly describing the nature and
purpose of the job
C. WORK ACTIVITIES
– Organized description of tasks and activities in
which the job is involved
 D. TOOLS AND EQUIPMENT USED
– For employee selection and training
E. JOB CONTEXT
– Describes the environment in which the
employee works in (stress level, work schedule,
location, physical demands etc.)
F. WORK PERFORMANCE
- Outlines the standards for performance
G. COMPENSATION INFORMATION
- Brief information on salary and benefits
H. JOB COMPETENCIES
- Job specifications/KSAOs
11. Flanagan and his students developed this
job analysis method to determine successful
from unsuccessful performances of a job.
A. JCI
B. TTA
C. CIT
D. ONET
METHODS OF PROVIDING GENERAL INFORMATION ABOUT
WORKER ACTIVITIES
AUTHOR DESCRIPTION
194 items, six domains
Position Analysis McCormick Inexpensive
Questionnaire et al. Difficult to comprehend, not
very sensitive
Job Structure Patrick and Revised version of PAQ
Profile Moore Increase discriminatory power
Job Elements Cornelius 153 items, alternative to PAQ
Inventory and Hakel easier to read
Quick method used by federal
Functional Job
Fine government to analyze
Analysis
thousands of jobs
 METHODS PROVIDING INFORMATION ABOUT TOOLS AND
EQUIPMENT
AUTHOR DESCRIPTION
400 questions, 5 categories
Job Components Only job analysis method that
Banks et al.
Inventory has a section on tools and
equipment

METHODS PROVIDING INFORMATION ABOUT THE WORK

ENVIRONMENT
AUTHOR DESCRIPTION
Ergonomic analysis procedure,
Rohmert
AET relationship of worker and
and Landau
work object
METHODS PROVIDING INFORMATION ABOUT COMPETENCIES

AUTHOR DESCRIPTION
Used by government to analyze
Occupational
Federal jobs at 4 levels (economic,
Information
government organizational, occupational,
Network
individual)
Record actual incidents of job
Critical Incident John
behavior that determines job
Technique Flanagan
success
Job Components Perceptual, physical,
Banks et al.
Inventory mathematical, and other skills
33 items that identify traits for
Threshold Trait
Lopez et al. successful performance
Analysis
Not available commercially
METHODS PROVIDING INFORMATION ABOUT COMPETENCIES

AUTHOR DESCRIPTION
Fleishman Job 30 years of research, rate level
Fleishman
Analysis Survey of ability needed to perform
132 items, extent to which one
Job Adaptability Pulakos et
needs to adapt to situations on
Inventory al.
the job
Personality-
107 items tapping 12
Related Position Raymark et
personality dimensions that fall
Requirements al.
under the Big 5
Form
12. Which of the following situations is not an
example of internal pay equity?
A. May is paid more than Mae since she has been
with the company longer.
B. Denise and Denis are paid the same but Denis
demands for more since he works the night shift
C. Anne and Ann work at different companies and
have different salaries although they have the same
tasks.
D. Gail works for the finance department and is paid
higher than Gale who works for housekeeping.
JOB EVALUATION
JOB EVALUATION

• Determining a job’s worth/how much

employees in a specific position should be
paid

2 Stages:
1. Determine Internal Pay Equity
2. Determine External Pay Equity
 DETERMINING INTERNAL PAY EQUITY
- Comparing jobs within an organization

1. Determine Compensable Job Factors

Compensable Job Factors

a. Level of Responsibility
b. Physical Demands
c. Mental Demands
d. Education Requirements
e. Training and Experience Requirements
f. Working Conditions
2. Determine the Levels for Each Compensable Factor

E.g. Educational Requirements – High school

diploma, bachelor’s degree, master’s degree
Working conditions – Office, Field

3. Determining the Factor Weights

- Arrange factors based on importance by

assigning weights to each factor
Wage Trend Line – graph comparing total
number of points for each job compared to its
current salary
- Determines who are underpaid/overpaid
13. The issue of comparable worth is seen in which of the
following?
A. Finn thinks and finds it unfair that Poe is given bigger
opportunities simply because he is white but what he
doesn’t know is that Poe has better qualifications.
B. Leah advocates for transparency and open
communication in her company since she knows that there
are problems with how funds are handled.
C. Han is the oldest worker in his cruise ship but is given
the hardest work to do.
D. Rey and Ben are both engineers. Ben is always chosen
as project head even if Rey is as competent.
 DETERMINING EXTRENAL PAY EQUITY
- Comparing jobs to the external market (other
organizations)
- Ensure that salary is competitive
Salary Surveys – request for a breakdown of how
much an organization pays its employees
Market position – Where an organization is in
relation to compensation policies of other
organizations

SEX AND RACE EQUITY

Comparable Worth – disparity between what one
gender or ethnicity is paid as compared to the
other gender or other ethnicities
14. Peter has filed a complaint against OSCORP. An
arbiter was presented with their case and has
decided to side with OSCORP upon the issue. Peter
is unable to pursue his case due to the nature of the
decision of the arbiter. What decision was made?
A. Absolute Arbitration
B. Binding Arbitration
C. Non-binding Arbitration
D. Despotic Arbitration
LEGAL ISSUES
 GRIEVANCE SYSTEM
• System employed by an internal committee
to address employee concerns

MEDIATION
• An external and neutral third party assists the
employee and the organization to mutually
agree on a solution

ARBITRATION
• An external and neutral third party makes a
decision
Binding Arbitration – neither side can appeal
Non-Binding Arbitration– parties can accept or
reject decision
PROTECTED CLASS
- Any group of people which protective
legislation has been passed
e.g. PWDs, Pregnant women

ADVERSE IMPACT
- Employment decisions that result in negative
consequences for a protected class
- Statistical and practical significance
Four-fifths rule
percentage of applicants hired in the
disadvantaged group < 80% percentage of
applicants hired in the advantaged group
15. Stewie is the vice president of an advertising
company. He is known to be perverted and
biased since he usually gives promotions and
salary rises to employees who would grant him
sexual favors. This is called?
A. Hostile Environment
B. Sexual Harassment
C. Quid Pro Quo
D. Abuse of Power
HARASSMENT
 QUID PRO QUO HOSTILE
- Employment ENVIRONMENT
decisions in - Unwanted pattern
exchange for of sexual harassment
sexual favors that interferes with
- A single incident work performance
can warrant legal
consequences e.g. comments,
e.g. A maid is forced unwanted sexual
to sleep with her advances, display of
employer to keep demeaning posters,
her job signs or cartoons
16. Valentina accused her company for invading her privacy. She
discovered that her company had installed security cameras in her
office without her knowledge and had been monitoring her work
email. If she were to file a case, on what grounds would her
arguments be most successful?
A. The right to privacy is a basic human right and must be upheld at
all times.
B. Valentina had no previous knowledge of the company’s
intentions. They had failed to communicate and make clear their
safety procedures to the employees.
C. The company has all the right to do these procedures without
prior notice or communication since they have sovereignty over
their employees.
D. It is not possible to file a case against her employers since
Valentina’s office and computer are the property of the company.
17. Which of the following is NOT a reason why companies
use Blind box ads?
A. Big and prestigious companies who are hiring want to
avoid the massive influx of applicants who want to work for
them despite being unqualified.
B. Companies who have bad reputations do not want their
potential applicants to be discouraged by their infamy.
C. Companies use these to promote the principle of
‘Costumers to Employees’ wherein ads are posted tin places
where they are most visible.
D. Companies would want to avoid the hassle and drama
that would result from a current employee finding out about
being fired or replaced through a recruitment ad for his/her
position.
RECRUITMENT
RECRUITMENT
- Attracting potential workers to fill job
vacancies
INTERNAL RECRUITMENT
-promoting or transferring within the organization
+ enhance employee morale and
motivation
RECRUITMENT
- stale work force
EXTERNAL RECRUITMENT
- hiring someone from outside the organization
+ bring new ideas and perspectives
- costly
 INTERNAL RECRUITMENT
JOB POSTING – notices of vacancies are posted on
the bulletin boards were the employees can see

EXTERNAL RECRUITMENT
NEWSPAPER ADS – people who are interested
may: respond by calling, send-a-resume, apply-
in-person, blind box
ELECTRONIC MEDIA –television and radio
SITUATION WANTED ADS – placed by applicants
to ‘advertise’ themselves
POINT-OF-PURCHASE METHOD – ads are posted in
places people are most likely to see
18. What is TRUE about employee referrals?
A. It is one of the most inefficient ways to recruit
employees.
B. They may lead to an imbalance in the racial and
ethnic make-up of a company.
C. The success of a referred employee cannot be
predicted based on the success of the employee
who made the referral.
D. The incentives gained are the biggest and
primary motivators in making employee referrals.
 EXTERNAL RECRUITMENT
JOB FAIRS – campus recruitment, virtual job fairs

EXECUTIVE SEARCH FIRMS/HEADHUNTERS -

Private firms that represent higher-paying and
non-entry level positions. They charge the
company for their fees

EMPLOYMENT AGENCIES – charge either the

company or the applicant

EMPLOYEE REFERRALS – One of the most

effective recruitment methods. Workers referred
by successful employees have longer tenure
19. Among the following which is the best
method for evaluating the effectiveness of
various recruitment methods?
A. Determining the cost per applicant
B. Determining the cost per qualified applicant
C. Determining the number of applicants
attracted
D. Determining the number of successful
applicants
 EVALUATING EFFECTIVENESS OF
RECRUITMENT STRATEGIES

1. Number of applicants
2. Cost per applicant
3. Number of qualified applicants
4. Cost per qualified applicant
5. Number of successful employees
generated
6. Number of minorities and women that
applied and were hired
20. What is the difference between a Realistic Job Preview
and an Expectation-Lowering Procedure?
A. An ELP is a variation of the RJP that focuses on giving
realistic descriptions of the particulars of a job.
B. An RJP is a variation of the ELP that focuses on work in
general. It aims to promote longer tenure and higher job
satisfaction
C. An ELP focuses on expectations as to the nature of work
in general. It does not dwell much on a particular job or
task.
D. An RJP is most effective when it is given at the beginning
of the recruitment process while the ELP is better delivered
during the selection process.
Realistic Job Preview
(RJP)
- Giving applicants Expectation-
an honest Lowering Procedure
assessment of a (ELP)
- Variation of the RJP
specific job
technique
- Lower turnover,
- Focuses on lowering
higher job an applicant’s
satisfaction, better expectations about
job performance the nature of work in
*small degree general
- Not too particular to
a job
21. A cleaning company was sued of negligent hiring by one of
their clients after an employee of theirs had stolen cash and jewelry
and disappeared. The company has already done a thorough
background and reference check before hiring the employee and
found nothing suspicious. Which of the following is TRUE?
A. The client is justified in suing the company since the employee
was under their jurisdiction
B. The client is justified in suing the company since they did not do
enough to ensure the integrity and moral character of the people
they hire.
C. The client is not justified in suing the company since it should
be the employee who should be sued.
D. The client is not justified in suing the company since all the
procedures that they had done gave them no reason not to hire the
employee.
22. This is a cognitive-ability test that is widely
used in the industry because it is a group test that
can be administered in more or less 12 min.
A. Wonderlic Personnel Test
B. Wonderlic Personality Test
C. Siena Reasoning Test
D. Basic Cognitive Reasoning Test
23. This is a selection technique that simulates
tasks in a job wherein applicants have to
determine and sort information into those that
are already completed and those that still need to
be handled.
A. Simulation
B. Business Games
C. Work Sample
D. In-basket
24. The scores on the test of employees are
correlated with their performance appraisals and
tenure in the company. What kind of validity is
being established?
A. Internal Consistency
B. Criterion
C. Convergent
D. Content
25. Designed to determine the percentage of
future employees who will become successful if
a certain test will be used.
A. Utility Formula
B. Lawshe Tables
C. Taylor-Russel Tables
D. Expectancy charts
26. What are the three variables needed in using
the answer to no. 25?
A. Validity, selection ratio, base rate
B. Validity, test scores, base rate
C. Validity, reliability, selection ratio
D. Validity, number of employees hired/year,
average tenure of employees
SELECTION
 EMPLOYMENT INTERVIEWS
• Most common method of selection
TYPES OF INTERVIEWS BASED ON STRUCTURE
• Source of questions is the job analysis
• All applicants are asked the same
questions
Structured
• Standardized scoring key
Interview
• For less experienced interviewers
+ Validity, viewed favorably by court
- More difficult for applicants
• Interviewers are free to ask anything
• Different questions for applicants
Unstructured
• Scoring is up to the interviewer
Interview
• For experienced interviewers
+ Cover wider range of topics, less rigid
 TYPES OF INTERVIEWS BASED ON STYLE
One-on-
One • One interviewer and one applicant
Interviews
• Series of single interviews with
Serial
different interviewers at different
Interviews
times
Return • Like serial interviews but with a longer
Interviews period of time in between (weeks)
• Multiple interviewers asking and
Panel
evaluating one applicant at the
Interviews
same time
Group • Multiple applicants answering
Interviews questions in one interview session
 TYPES OF INTERVIEWS BASED ON MEDIUM
Face-to-
• Interviewer and applicant in
face
the same room
Interview
Telephone • Used to screen applicants but
Interview do not allow for visual cues
Video-
• Conducted at remote sites
conference
• Not in person
Interview
Written • Applicant answers a series of
Interviews written questions and submits it
 TYPES OF QUESTIONS
• Clarify information, fill in gaps,
Clarifiers
obtain necessary information
• Must be answered in a certain way
Disqualifiers
for applicant to be considered
Skill-level
• Determine level of expertise
Determiners
• Past-focused; actual previous
Behavioral
behavior
• Future-focused; what one would do
Situational
in a hypothetical situation
Organizational- • Extent to which the applicant will fit
fit into the culture of the organization
 SCORING OF INTERVIEW ANSWERS

1. RIGHT/WRONG APPROACH
• Only one correct answer

2. TYPICAL-ANSWER APPROACH
• Several possible answers with equivalent
scores

3. KEY-ISSUES APPROACH
• Point for every key issue included in the
applicant’s answer
27. What result would NOT be considered as adverse
impact?
A. Poca, who is Native American, was not hired because
she did not meet the minimum requirements of the job.
B. Briar was removed from her job as an opera singer at
the London Theater due to rising tensions between the UK
and Russia, her home country.
C. Zel and all her fellow applicants who did not speak
English were not hired by a telecommunications company
in Germany.
D. Cindy, who is Caucasian, was considered over Tiana, a
black woman, by a hospital that has mostly white
employees.
SELECTION: REFERENCES
 PREDICTING PERFORMANCE USING
REFERENCES

REFERENCE CHECKS – Process of

confirming the accuracy of
information provided by an applicant

REFERENCE – Expression of opinions

regarding an applicant’s
competence and character

- Expressed through LETTERS OF

RECOMMENDATION
 USE OF REFERENCE CHECKS:

1. CONFIRM DETAILS ON A RESUME

RESUME FRAUD – Lying about work
experience, educational attainment
etc. on resumes

2. CHECKING FOR DISCIPLINE PROBLEMS

NEGLIGENT HIRING - Hiring an applicant,
without conducting
reference/background checks, that
eventually commits a crime while being
employed in the organization

3. DISCOVERING NEW INFORMATION

ABOUT THE APPLICANT
 USE OF REFERENCE CHECKS:

4. PREDICTING FUTURE PERFORMANCE

- By looking at previous information,
future work performance is predicted

Conditional Privilege – right to express

opinion provided that they believe what
they say is true and have reasonable
grounds for this belief

Negligent Reference – when a former

employer does not provide relevant
information to the organization that
requests it
SELECTION: TESTING
 PREDICTING PERFORMANCE USING APPLICANT
TRAINING AND EDUCATION

- GPA is the best predictor but results to adverse

impact

PREDICTING PERFORMANCE USING APPLICANT

KNOWLEDGE

Job Knowledge Tests - Designed to measure

how much a person knows about a job
- Excellent criterion and content validity
PREDICTING PERFORMANCE USING APPLICANT
ABILITY

A. COGNITIVE ABILITY
- Oral/written comprehension and expression,
numerical ability, memory, reasoning etc.
Cognitive Ability Tests - excellent predictors of
performance but results in the highest adverse
impact

Wonderlic Personnel Test

- One of the most widely used test that is
relatively quick to accomplish and can be
administered in groups
 B. PERCEPTUAL ABILITY
- Vision, color discrimination, speech and
hearing
- For jobs that require sensory abilities

C. PSYCHOMOTOR ABILITY
- Finger and manual dexterity, reaction time,
arm-hand steadiness
- Police officers, drivers

D. PHYSICAL ABILITY
- Measured in job simulations or in physical agility
tests
- Stamina, flexibility, dynamic and static strength
 PREDICTING PERFORMANCE USING APPLICANT
SKILL
- Measure the extent to which an applicant
already has a job-related skill

1. Work Samples – applicant performs actual job-

related tasks
+ excellent content, face and predictive validity
- Expensive to construct and administer

2. Assessment Centers - Use of multiple

assessment methods that allow multiple assessors
to actually observe applicants perform simulated
job tasks
In-Basket Technique
- simulate daily information that applicants
handle
- sort documents into ‘in’ (to be handled) and
‘out’ (completed)
Simulations
- Backbone of assessment centers
- Situations closely resembling actual job such as
role plays and work samples (when no
situational exercise is involved)
Leaderless Group Discussions
- Small groups are formed and are given job-
related problems to solve or issues to discuss
- Individually rated on cooperation, leadership
and analytical skills
Business Games
- Exercise that demonstrates creativity, decision
making, and ability to work with others
USEFULNESS OF A
SELECTION DEVICE
A.TAYLOR-RUSSELL TABLES
- Estimate the percentage of future employees
who will be successful on the job if a particular
test is used
Requirements: criterion validity coefficient,
selection ratio, base rate

B. PROPORTION OF CORRECT DECISIONS

- Graphical method of establishing usefulness
- Easier but less accurate than Taylor-Russel
Tables
Requirements: employee test scores and scores
on the criterion
C.LAWSHE TABLES
- Estimates the probability of a particular
applicant to be successful on a job
Requirements: validity coefficient, base rate,
applicant’s test score

D. BROGDEN-CRONBACH-GLESER UTILITY FROMULA

- Involves computing the amount of money an
organization will save if a particular test is used
Requirements: Number of employees hired per
year, average tenure, test validity, SD of
performance in dollars, mean standardized
predictor score of selected applicants,
28. Susan, Peter and Edmund scored the highest
during the selection process. The recruiter now
submits their profiles to the HR director who makes
the hiring decisions. What kind of selection
technique is this?
A. Passing Scores
B. Top-Down
C. Rule of Three
D. Multiple cutoff
29. This selection technique is a compromise
between top-down hiring and passing scores, it
attempts to hire the top test scorers while still
allowing some flexibility for affirmative action.
A. Compensatory Approach
B. Banding
C. Multiple hurdles
D. Rule of Three
 MAKING THE HIRING DECISION
TOP-DOWN SELECTION
- Applicants are ranked by scores and then
chosen from the highest score moving
downwards until all opening have been filled

COMPENSATORY APPROACH
- A high score in one test can compensate for
a low score in another

RULE OF THREE/FIVE
- Names of the top three/five scorers are given
to the person making the hiring decision
 MAKING THE HIRING DECISION
PASSING SCORES
- Reduce adverse impact and increase
flexibility
- Determines the lowest score on a test that is
associated with acceptable job
performance

MULTIPLE-CUTOFF
- Multiple tests are administered at one time
- Applicants will not be considered if they fail
any one of the tests
- Costly
 MAKING THE HIRING DECISION
MULTIPLE-HURDLE
- Applicant is administered one test at a time
- Applicants who fail at a particular stage in
the testing will not be considered anymore
BANDING
- Compromise between top-down and
passing scores methods
- Attempts to hire top scorers but also allow
some flexibility using standard error to
determine whether differences in scores are
significant
PERFORMANCE APPRAISAL
 STEP 1: DETERMINE REASONS FOR
PERFORMANCE APPRAISAL
1. Providing employee training and feedback
2. Determining salary increases
3. Making promotion decisions
4. Making termination decisions
5. Conducting personnel research

STEP 2: IDENTIFY ENVIRONMENTAL AND

CULTURAL LIMITATIONS
- Determine the current state of organization
and whether a performance appraisal is
appropriate and necessary to conduct
30. Which of the following is FALSE?
A. High performers evaluate their peers more
strictly than do low performers.
B. Employees tend to react worse to negative
feedback from peers than from experts
C. Peer ratings are fairly reliable only when the
peers who make the ratings are similar to and well
acquainted with the employees being rated
D. Peer-ratings are the most common type of
performance appraisals.
 STEP 3: DETERMINE WHO WILL EVALUATE
PERFORMANCE
360-DEGREE FEEDBACK – Multiple sources to
appraise performance
1. SUPERVISORS – Most common; usually see
end results
2. PEERS – See actual behavior
• High performers evaluate more strictly
3. SUBORDINATES – Difficult to obtain
4. CUSTOMERS – Evaluation forms
• Secret Shoppers – customers enlisted to
appraise periodically
5. SELF-APPRAISAL – Not common
31. This approach for performance appraisals
focus on attributes such as employee honesty,
courtesy and assertiveness.
A. Competency-focused
B. Trait-focused
C. Character-focused
D. Contextual-focused
 STEP 4: SELECT BEST APPRAISAL METHOD
APPRAISAL DIMENSIONS:
A. TRAIT-FOCUSED
- Honesty, punctuality, courtesy etc.
- Provide poor feedback
B. COMPETENCY-FOCUSED
- KSAOs
- Easier to provide feedback
C. TASK-FOCUSED
- How well tasks are performed
- Easier to evaluate, difficult to specify feedback
D. GOAL-FOCUSED
- Goals accomplished
E. CONTEXTUAL PERFORMANCE
- Effort to do tasks that are needed but not necessarily
part of the job (e.g. get along)
32. I. Forced-choice distribution is an example of an
objective or hard criteria employee comparison method.
II. In using the paired comparisons method for evaluating
6 employees, there will be 15 comparisons
III. Errors are focused upon when measuring performance
using quality of work
IV. The graphic rating scale is the most common tool used
in rating performance
A. I an IV are FALSE
B. I,II and III are TRUE
C. II, III and IV are TRUE
D. II and IV are FALSE
E. All are TRUE
 STEP 4: SELECT BEST APPRAISAL METHOD
EMPLOYEE COMPARISONS:
A. RANK ORDER – Employees are ranked based on
performance
- Easy to use with few employees
B. PAIRED COMPARISONS – Comparing every
possible pair of employees and choosing the better
one
- n(n-1)/2
C. FORCED DISTRIBUTION – Predetermined
percentage of employees are placed in five
categories
- ‘rank and yank’
- Assume that employee performance is normally
distributed
 STEP 4: SELECT BEST APPRAISAL METHOD
OBECTIVE MEASURES (HARD CRITERIA):
1. Quantity of Work
2. Quality of Work (Errors)
3. Attendance
4. Safety (Adherence to safety rules)

RATING OF PERFORMANCE

Graphic Rating Scale - most common rating scale

with 5 to 10 dimensions with labels at the ends

Behavioral Checklists – Assign rates to a list of all

behaviors, expectations and results of each
dimension
 STEP 5: TRAIN RATERS
FRAME-OF-REFERENCE TRAINING
- Provide raters with job-related information,
practice in rating, and examples of ratings
made by experts
STEP 6: OBSERVE AND DOCUMENT
PERFORMANCE
CRITICAL INCIDENTS
– Examples of excellent and poor
performance
- Documentation avoids errors and biases
33. Diana is a manager who is about to rate Caitlyn.
Although Diana observes that Caitlyn is not a very
good worker, she still decided to rate her highly
since the previous rater did the same. What error is
being committed?
A. Halo Error
B. Leniency Error
C. Assimilation Error
D. Reference Error
 STEP 7: EVALUATE PERFORMANCE
DISTRIBUTION ERRORS:
1. LENIENCY ERROR – Rate at the upper end of
the scale
2. CENTRAL TENDENCY ERROR – Rate at the
middle of the scale
3. STRICTNESS ERROR – Rate at the lower end
of the scale
HALO ERROR
- Raters allow a single attribute or an overall
impression to affect ratings
- Occurs when rater has little knowledge of the
job
PROXIMITY ERRORS – When a rating made on a
dimension affects the rating on another
dimension that is physically near it
CONTRAST ERRORS
– Rating of a person is influenced by a
previously evaluated person
- Can also occur between separate
performance evaluations of the same
person
ASSIMILATION ERROR
- A new rater bases rating on previous
evaluations of an employee regardless of
performance
34. This method of communicating appraisal
results starts with telling an employee what
he/she had done poorly, then marketing ways on
how he/she can improve.
A. Feedback sandwich
B. Tell and Sell
C. Negative-positive
D. Collaborative
 STEP 8: COMMUNICATE APPRAISAL
RESULTS TO EMPLOYEES

TELL AND SELL APPROACH

- Supervisor ‘tells’ an employee about
his/her poor performance and then ‘sells’
him/her ways of improvement

FEEDBACK SANDWHICH
- Positive feedback is generally given first,
followed by negative feedback, and
positive feedback to finish
 STEP 9: TERMINATE EMPLOYEES
EMPLOYMENT-AT-WILL DOCTRINE
- Allows
35. for employers
Companies are allowed to tofire
fireemployees
an employee
at any
time because of without reason
the employee-at-will doctrine.
Limitations:
When would this doctrine be invalid?
•A. Prohibited by law has no contract with the
If the employee
Employee is exercising a legal duty or
•company.
B. refusing to violate
If the company the
is in the law or
private professional
sector
C. ethics
If an employee has refused to violate the ethics of
•hisContracts (written
profession for or implied) specify a
the company
D. period of employment
If the employee is still in the probationary period
• In good faith and fair dealing
35. Companies are allowed to fire employees at any
time because of the employee-at-will doctrine.
When would this doctrine be invalid?
A. If the employee has no contract with the
company.
B. If the company is in the private sector
C. If an employee has refused to violate the ethics of
his profession for the company
D. If the employee is still in the probationary period
 STEP 9: TERMINATE EMPLOYEES

REASONS FOR TERMINATION:

1. Probationary period
2. Violation of company rules
3. Inability to perform
4. Reduction in force (layoffs) in the
best economic interests of the
organization
36. This was developed by Latham and Wexley.
It is a more sophisticated method for measuring
the frequency of desired behaviors.
A. BARS
B. BOS
C. Critical-incidents
D. Forced-choice
37. This is defined as the systematic acquisition
of skills, rules, concepts, or attitudes that result
in improved performance
A. Training
B. Development
C. Socialization
D. Team Building
TRAINING
TRAINING
- Systematic acquisition of skills, rules,
concepts, or attitudes that result in
improved performance
- To increase organization’s efficiency and
profit
NEEDS ANALYSIS
RECRUITMENT
- First step to developing employee training
system
- Determine types of training and extent of
practicality of training in achieving
organizational goals
38. I. Task analysis is the first step in a Training Needs Analysis
(TNA)
II. Organizational analysis looks at the goals that a company
wants to achieve with training its employees
III. Job Analysis is most relevant in the last stage of
TNA
IV. Person Analysis involves determining whether the
company is able to fund the training of the employees
A. I and IV are FALSE
B. Only II is TRUE
C. Only III is TRUE
D. II, III and IV are FALSE
E. I, II and III are TRUE
 Determine organizational
ORGANIZATIONAL factors that facilitate/inhibit
ANALYSIS training effectiveness

Identify what tasks employees

are expected to perform, how
TASK ANALYSIS they are performed, and how
they are learned

PERSON Determining which

ANALYSIS employees need training
and in which areas
 DEVELOPING A TRAINING PROGRAM

I. ESTABLISHING GOALS AND OBJECTIVES

- Should concretely state what learners are
expected to do, the conditions under which
they are expected to do it, and the level at
which they are expected to do it
II. MOTIVATING EMPLOYEES
- Motivate trainees to attend, perform well and
apply training
III. CHOOSE BEST TRAINING METHOD
- Depend on goals of the training and what it is
intended for
39. This is an incentive method wherein
employees attend trainings to improve a certain
skill that they need to be promoted or have a pay
raise.
A. Competency-based pay
B. Skill-based pay
C. Experience-based pay
D. Knowledge-based pay
40. Reviewing seriously two weeks before the
board examination is called?
A. Distributed practice
B. Aggregated practice
C. Massed practice
D. Bravery
A. CLASSROOM TRAINING
- Most common training method
- Seminars, lecture, workshops
 TRAINING METHODS
A. CLASSROOM TRAINING

DISTRIBUTED LEARNING
- information presented in small,
easily remembered chunks
distributed over a period of time
MASSED LEARNING
- information learned all at once
41. First respondents are usually trained in CPR
using simulated emergencies and dummies. This
allows them to train for actual events when they
are needed. What training method is used?
A. Behavior Modeling
B. Role Play
C. Programmed Instruction
D. NOTA
 • CASE STUDIES
Members of a small group read a case
(hypothetical or real) and discuss the case,
identify and evaluate possible solutions, and
arrive at the best one

• SIMULATION
Allow trainee to practice newly learned skills
and work with equipment under actual
working conditions without the
consequences of mistakes
42. During training, the manager shows the
trainees how to deal with customer complaints,
after which the trainees take turns in doing the
exercise. What training method is used?
A. Behavior Modeling
B. Role Play
C. Programmed Instruction
D. NOTA
• ROLE PLAY
Allow trainee to perform necessary
interpersonal skills by acting out roles

• BEHAVIORAL MODELING
Similar to role plays except that trainees
role-play ideal behavior and receive
feedback on their performance
43. What training method employs a self-paced
learning where information is presented in small
chunks?
A. Behavior Modeling
B. Role Play
C. Programmed Instruction
D. NOTA
B. DISTANCE LEARNING
- Allow employees to learn at their own
pace and at a time and place that is
most convenient for them
 TRAINING METHODS
B. DISTANCE LEARNING

• PROGRAMMED INSTRUCTION
- Employees are provided with
materials that allow for self-paced
and interactive learning presented
in small chunks
a. Computer-Based Training (CBT) and E-
Learning
- E-learning is web-based and CBT is not
- Choose from a variety of training programs
after which a series of questions are given
and feedback is provided
b. Interactive Videos
- Employees are given videotaped situations
where they are to select a response
- A corresponding video showing the
consequence of their response follows after
44. A company wants to use an interactive e-
learning training method. What method should
they use?
A. Webinars
B. Webcasts
C. Simulations
D. Assessment Centers
c. Webinars and Webcasts
- Webinars are interactive web-based seminars
- Webcasts are training programs transmitted
over the Web

d. Teleconferences
- Employees view a presentation while the trainer
conducts the audio portion of the training
through the phone
e. Blogs, wikis and listserves
- Employees are able to aske questions, receive
immediate answers, post opinions etc.
45. This is most commonly used to train non-
managerial employees. It allows for lateral
transfers within the company and is effective in
ensuring that the roles of absent employees are
attended to by replacements.
A. Apprentice Training
B. Backlog Training
C. Cross Training
D. Coaching
C. ON-THE-JOB TRAINING
- Informal training by experienced
peers and supervisors that occurs
on the job and during tasks
 TRAINING METHODS
C. ON-THE-JOB TRAINING

• MODELING/SOCIAL LEARNING
- Learn by observing how other
perform
- Model those who are successful,
similar and have status
• JOB ROTATION/CROSS-TRAINING
- Perform several different jobs to
increase awareness and flexibility
when replacing absent workers

• APPRENTICE TRAINING
- Found in specific crafts and trades
- Direct learning and experience with an
expert
• COACHING
- Experienced employees work with
new employees or professional
coaches work with all employees
- PASS-THROUGH PROGRAMS

• MENTORING
- Form of coaching where a veteran
helps a new employee adjust and
advance within an organization
46. Which of the following statements is FALSE?
A. Overlearning has more cons and pros in that
although time and effort is spent in relearning
information, retention is not lengthened.
B. The more similar the training environment is to
the actual work environment increases the
effectivity of the training
C. Transfer of training increases when the ‘big
picture’ and basic principles are taught rather than
just specific tasks or techniques
D. It is better to train employees in as many
different situations as possible so every change
 TRANSFER OF TRAINING
Application of knowledge and
experience learned in training to
actual job

OVERLEARNING
Practice of a task even after it has
been successfully learned to increase
retention
47. This is the lowest and most common method
of evaluating a training method.
A. Employee Learning
B. Employee Reactions
C. Business Impact
D. Return of Investments