Testing and Selection Chapter review

6-1. Careful employee selection is important for several reasons. Your own performance
always depends on your subordinates; it is costly to recruit and hire employees; and
mismanaging the hiring process has various legal implications including equal employment,
negligent hiring, and defamation.
6-2. Whether you are administering tests or making decisions based on test results, managers
need to understand several basic testing concepts. Reliability refers to a test’s consistency,
while validity tells you whether the test is measuring what you think it’s supposed to be
measuring. Criterion validity means demonstrating that those who do well on the test also do
well on the job while content validity means showing that the test constitutes a fair sample of
the job’s content. Validating a test involves analyzing the job, choosing the tests,
administering the test, relating your test scores and criteria, and cross-validating and
revalidating. Test takers have rights to privacy and feedback as well as to confidentiality.
6-3. Whether they are administered via paper and pencil, by computer, or online, we
discussed several main types of tests. Tests of cognitive abilities measure things like
reasoning ability and include intelligence tests and tests of specific cognitive abilities such as
mechanical comprehension. There are also tests of motor and physical abilities, and measures
of personality and interests. With respect to personality, psychologists often focus on the “big
five” personality dimensions: extroversion, emotional stability/neuroticism, agreeableness,
conscientiousness, and openness to experience. Achievement tests measure what someone has
learned.
6-4. With work samples and simulations, you present examinees with situations
representative of the jobs for which they are applying. One example is the management
assessment center, a 2- to 3-day simulation in which 10 to 12 candidates perform realistic
management tasks under the observation of experts who appraise each candidate’s leadership
potential. Video-based situational testing and the miniature job training and evaluation
approach are two other examples.
6-5. Testing is only part of an employer’s selection process; you also want to conduct
background investigations and other selection procedures.

 The main point of doing a background check is to verify the applicant’s information
and to uncover potentially damaging information. However, care must be taken,
particularly when giving a reference, that the employee is not defamed and that his or
her privacy rights are maintained.
 Given former employers’ reluctance to provide a comprehensive report, those
checking references need to do several things. Make sure the applicant explicitly
authorizes a background check, use a checklist or form for obtaining telephone
references, and be persistent and attentive to potential red flags.
 Given the growing popularity of computerized employment background databases,
many or most employers use preemployment information services to obtain
background information.
  For many types of jobs, honesty testing is essential, and paper-and-pencil tests have
proven useful.
 Most employers also require that new hires, before actually coming on board, take
physical exams and substance abuse screening. It’s essential to comply with
immigration law, in particular by having the candidate complete an I-9 Employment
Eligibility Verification Form and submit proof of eligibility.
6-1. What is the difference between reliability and validity?

Reliability and validity are essential concepts in research and assessment methods,
particularly in the field of human resources. They both contribute to the quality and accuracy
of measurements and evaluations, but they focus on different aspects:
Reliability: Reliability refers to the consistency and stability of measurements over time or
across different contexts. In the context of HR, it means that if a measurement, such as a test
or assessment, is reliable, it should yield consistent results when administered multiple times
or by different individuals. High reliability indicates that the measurement is dependable and
not greatly influenced by random factors.
Validity: Validity, on the other hand, is concerned with the accuracy and appropriateness of a
measurement in capturing what it intends to measure. In HR, a valid assessment accurately
measures the specific skills, qualities, or attributes relevant to the job or trait being assessed.
Validity ensures that the measurement tool measures what it is supposed to measure, avoiding
biases or distortions.
6-2. Should other (non-HR) departments be allowed to help with the recruitment of

candidates? Why or why not? Discuss the pros and cons of this.

Pros:
Specialized Knowledge: Non-HR departments possess specific insights about the required
skills and competencies for their respective areas, which can lead to more targeted candidate
evaluation.
Diverse Perspectives: Different departments can bring diverse viewpoints, helping to select
candidates who fit well within the broader organizational context.
Reduced Bias: Involving multiple departments can mitigate biases that might arise from a
single department's perspective.
Engagement: Involvement in recruitment fosters a sense of ownership and engagement
among various teams, potentially leading to higher cooperation and integration.
Cons:
Time and Resources: Involving multiple departments can extend the recruitment timeline and
require additional resources for coordination.
Conflict: Differences in opinions among departments can lead to conflicts and difficulties in
reaching a consensus on candidate selection.
Lack of Expertise: Non-HR departments might lack proper training in recruitment techniques,
potentially leading to less effective candidate evaluations.
Inconsistent Standards: Different departments might use varying criteria for evaluating
candidates, leading to inconsistency in selection.
6-3. Why is it important to conduct preemployment background investigations? How

would you do so?

Preemployment background investigations are crucial to ensure the integrity and suitability of
potential candidates. They help verify the accuracy of information provided by candidates
and protect the organization from potential risks. The investigations can include criminal
records checks, educational and employment history verification, reference checks, and credit
checks where applicable.
These investigations are important because they:
Mitigate Risks: They help identify individuals with a history of unethical behavior or
criminal activity, minimizing the potential for harm to the organization and its employees.
Ensure Qualifications: Background checks validate the educational and professional claims of
candidates, ensuring that they possess the necessary skills and qualifications.
Maintain Trust: Conducting thorough background checks instills confidence in stakeholders
that the organization is diligent in its hiring process.
To conduct preemployment background investigations:
Criminal Record Checks: Collaborate with law enforcement agencies or third-party
background screening firms to verify criminal history.
Education and Employment Verification: Contact educational institutions and previous
employers to verify claimed credentials and work history.
Reference Checks: Contact provided references to gain insights into the candidate's character,
work ethic, and suitability for the role.
6-4. Explain how you would get around the problem of former employers being

unwilling to give bad references on their former employees.

It can be challenging to obtain negative references due to various reasons, such as legal
concerns and professional courtesy. To overcome this issue, consider the following
approaches:
Anonymous Surveys: Provide a structured anonymous survey to former colleagues or
supervisors, allowing them to share candid feedback without fear of reprisal.
Legal Compliance: Ensure that the reference request process adheres to relevant laws and
regulations, encouraging more honest feedback.
Third-Party Verification: Use independent third-party reference verification services that can
collect feedback without disclosing the source to the candidate.
6-5. How can employers protect themselves against negligent hiring claims?

Employers can take several measures to safeguard against negligent hiring claims:
Thorough Screening: Conduct comprehensive background checks, reference checks, and
skills assessments to ensure candidates are qualified and suitable.
Clear Job Descriptions: Clearly define job expectations and requirements to avoid hiring
individuals who lack the necessary skills or qualifications.
Documented Process: Maintain records of the entire hiring process, including evaluations,
interviews, and reference checks, to demonstrate due diligence.
Training: Train HR staff and hiring managers in proper interview techniques and legal
requirements to avoid biases and ensure fair evaluations.
Consistent Policies: Implement consistent hiring policies and standards across all candidates
to demonstrate fairness.
Legal Counsel: Consult legal experts to ensure compliance with employment laws and
regulations, reducing the risk of liability.

6-10. Designing an Employee Selection Program for Hiring Stock Traders:

Introduction:
The recent conviction of a stock trader, along with accomplices, for insider trading has
highlighted the importance of implementing a thorough employee selection program within
investment firms. This program aims to not only evaluate technical skills but also to screen
out candidates who might be inclined towards unethical behavior, ensuring the integrity of
the firm's operations.
Screening Tests:
1. Ethics and Integrity Assessment: Include a psychological assessment that evaluates
ethical decision-making and integrity. This could involve hypothetical scenarios
related to insider trading and other unethical situations to gauge candidates' responses
and ethical reasoning.
2. Situational Judgment Test (SJT): Develop an SJT that presents candidates with real-
world scenarios involving ethical dilemmas and insider trading situations. Their
responses will reveal their thought process, ethical values, and judgment under
pressure.
Application Form Questions:

 Ethical Behavior Inquiry: Include questions about candidates' ethical values and
views on insider trading, corporate transparency, and confidentiality. Ask how they
would handle situations involving confidential information and conflicts of interest.
 Past Incidents Disclosure: Inquire if candidates have ever been involved in any legal
or ethical violations, including insider trading, and if so, ask for details and the steps
they took to address the situation.
Background Checks:

 Criminal and Regulatory Checks: Conduct thorough background checks to identify

any criminal history or regulatory violations related to financial markets or insider
trading.
 Social Media Screening: Review candidates' social media profiles to identify any
suspicious behavior, discussions, or affiliations that might indicate a propensity for
unethical activities.
Reference Checks:

 Character Assessment: Request references to provide insights into the candidate's

character, ethical behavior, and interactions within the workplace.
 Ethical Dilemma Inquiry: Ask references if they are aware of any situations where the
candidate faced ethical dilemmas, how they handled them, and whether they exhibited
integrity in such instances.
6-11. Additional Suggestions:
In addition to the aforementioned measures, consider the following suggestions to further
enhance the effectiveness of the employee selection program:

 Behavioral Interviews: Include behavioral interview questions that prompt candidates

to provide specific examples of how they have demonstrated ethical decision-making,
teamwork, and conflict resolution in their past roles.
  Psychometric Testing: Integrate personality assessments that can highlight personality
traits linked to ethical behavior, such as conscientiousness and agreeableness.
 Ongoing Ethics Training: Develop a comprehensive ethics training program for new
hires and existing employees. This program should emphasize the importance of
ethical conduct, provide guidance on recognizing and reporting unethical behavior,
and outline consequences for violations.
 Internal Reporting Mechanism: Establish a confidential reporting mechanism for
employees to report suspicions of unethical behavior within the organization. This
encourages a culture of accountability and transparency.
 Cross-Department Collaboration: Collaborate with legal, compliance, and HR
departments to ensure a holistic approach to candidate evaluation and to identify
potential red flags more effectively.
By implementing these recommendations, investment firms can strengthen their employee
selection process, proactively identify candidates with strong ethical values, and create a
work environment that prioritizes integrity and compliance with financial regulations.

6-12. Advantages and Disadvantages of Routine Honesty Tests:

Implementing honesty tests as a routine practice for all employees at Jennifer's company has
both potential advantages and disadvantages. On the positive side, honesty tests could
significantly contribute to the company's efforts in curbing employee theft and reducing
turnover rates. By assessing employees' propensity for honesty, the company could
effectively identify individuals who might be prone to engaging in unethical behavior, such as
theft or embezzlement. This proactive approach could potentially save the company
substantial financial losses, as well as the time and resources spent on recruiting and training
new employees to replace those who have left.
However, there are potential drawbacks to consider. The effectiveness of honesty tests might
be questionable, as ethical behavior is complex and not easily captured by a single
assessment. Such tests could lead to concerns regarding fairness and validity, especially if
certain demographic groups consistently perform differently on these tests. Moreover,
employees might feel uncomfortable or even resentful about being subjected to such intrusive
assessments, which could result in decreased morale and potentially damage the company's
reputation as a respectful employer. The implementation of honesty tests would also require
significant resources for development, administration, and analysis, potentially diverting
attention from other crucial HR activities.

6-13. Other Screening Techniques for Theft-Prone and Turnover-Prone Employees:

Beyond honesty tests, Jennifer's company can employ a range of additional screening
techniques to effectively identify theft-prone and turnover-prone employees. Behavioral
interviews, for instance, provide a valuable opportunity to delve into candidates' past
behaviors and actions. By posing situational questions that require candidates to recount how
they handled ethical dilemmas or challenging situations in the workplace, interviewers can
gain insights into candidates' decision-making processes and their propensity for theft or
unethical conduct.
Reference checks with former employers can also offer valuable information. Contacting
previous supervisors can provide a broader perspective on candidates' work history, their
attitudes towards ethical behavior, and any potential history of misconduct. Criminal
background checks are another avenue to identify candidates with a history of theft-related
convictions, thereby providing additional information to inform hiring decisions.
Assessment centers can be particularly effective for evaluating candidates' behavior in
simulated work scenarios. These centers offer candidates the opportunity to engage in role-
play exercises that mirror real workplace situations, allowing employers to assess how
candidates react under pressure and whether they demonstrate honesty, integrity, and the
ability to work harmoniously within a team.

6-14. Handling Employee Termination and Reference Calls:

Dealing with employees caught stealing requires a careful and strategic approach. Immediate
action is crucial to prevent further losses and maintain the company's integrity. Thorough
investigation and due process should be followed, ensuring that the termination process
aligns with legal requirements and company policies. This includes conducting a proper
inquiry to confirm the theft and offering the employee an opportunity to provide their side of
the story.
When it comes to reference calls about former employees who have been caught stealing,
transparency and accuracy are paramount. Companies should adopt a standardized reference
policy that provides guidance on the information that can be shared. The reference provided
should focus on objective facts related to the employee's job performance, work history, and
any incidents of theft. Personal opinions should be avoided, and the company should ensure
that reference inquiries are directed to the HR department or authorized personnel to maintain
consistency and legal compliance.
By combining these strategies and practices, Jennifer's company can develop a
comprehensive and effective employee screening program that not only identifies theft-prone
and turnover-prone individuals but also upholds ethical standards, respects employee privacy,
and adheres to legal obligations.

6-15. Detailed Example of a Security Guard Work Sample Test:

The security guard work sample test aims to assess the relevant skills and behaviors required
for the position. Here's a detailed example of such a test:
Scenario:
You are working as a security guard at the Hotel Paris. Your primary responsibility is to
ensure the safety and security of guests, employees, and the hotel property. You receive a call
from a guest complaining about a disturbance on one of the hotel floors. Your task is to
handle the situation effectively.
Task:
Review the hotel's security protocols to refresh your memory on handling guest complaints
and disturbances.
Approach the guest room quietly and professionally.
Politely introduce yourself as a security guard and inquire about the nature of the disturbance.
Listen attentively to the guest's concerns and gather relevant information.
If necessary, offer a sincere apology for the inconvenience and assure the guest that you will
address the issue promptly.
Depending on the situation, take appropriate action, which may involve contacting other staff
members, diffusing the situation, or providing the guest with a viable solution.
Maintain a calm and composed demeanor throughout the interaction.
After resolving the issue, thank the guest for bringing it to your attention and ask if there's
anything else you can assist them with.
This work sample test assesses the security guard's ability to handle guest complaints
professionally, follow hotel protocols, remain composed under pressure, and effectively
resolve issues while prioritizing guest satisfaction and safety.

6-16. Detailed Examples of Personality Test Items:

Personality tests aim to assess specific traits that align with the desired behaviors for the job
role. Here are two personality test items that could be used:
Personality Trait: Emotional Stability
Item 1: "In challenging situations, I tend to remain calm and composed, rather than becoming
easily stressed or anxious."
Item 2: "I believe my ability to manage my emotions positively influences my interactions
with others and my overall job performance."
Reason for Suggestion:
Emotional stability is crucial for roles like security guards, as they often encounter stressful
and unpredictable situations. These items assess the candidate's self-perceived emotional
stability and ability to handle pressure effectively.

6-17. Additional Tests and Their Reasons:

Considering the Hotel Paris's competitive strategy and the need for high-morale, people-
oriented employees, Lisa could consider the following additional tests:

 Situational Judgment Test (SJT): This test presents candidates with realistic workplace
scenarios and asks them to select the most appropriate course of action. SJTs assess
 problem-solving skills, customer service orientation, and decision-making under
pressure.
 Interpersonal Skills Assessment: Given the emphasis on guest service and people-
oriented behavior, an assessment focusing on candidates' ability to interact,
communicate, and empathize with guests and colleagues could be valuable.
 Cultural Fit Assessment: This assessment evaluates how well candidates align with
the company's values and culture. It helps ensure that selected employees will thrive
within the Hotel Paris's service-oriented environment.

6-18. Confirming the Impact of Testing on Improved Performance:

To confirm that the improved performance is indeed attributed to the testing program and not
other factors, Lisa could employ the following strategies:

 Control Group: Implement the testing program for a selected group of employees
while keeping another group unchanged. Compare the performance metrics between
the two groups over a defined period to determine if the testing group shows
significant improvements.
 Before-and-After Analysis: Analyze the performance metrics of the hotel before and
after the implementation of the testing program. If the performance indicators exhibit
a noticeable positive shift after the testing program's introduction, it would indicate a
potential causal relationship.
 Feedback and Survey Data: Gather feedback from employees who underwent the
testing process. Assess their perceptions of the program's impact on their job
behaviors, skills, and overall performance. Positive feedback can provide qualitative
evidence of the program's efficacy.
 Correlation Analysis: Conduct statistical analysis to examine the relationship between
testing scores and performance metrics. If higher testing scores consistently correlate
with improved performance, it strengthens the case for the testing program's
effectiveness.
By employing these methods, Lisa can establish a more robust link between the testing
program and the observed improvements, enhancing her confidence in the program's
contribution to the hotel's enhanced employee capabilities and overall performance.