Semester: Fall 2022

Chapter 4: Testing and Selection

Learning Objectives
1. Importance of testing and selecting employees
2. Explain what is meant by reliability and validity.
3. Explain how to validate a test.
4. Cite and illustrate different testing guidelines.
5. Give examples of some of the ethical and legal considerations in testing.
6. List tests you could use for employee selection, and how you would use
them.
7. Explain the key points to remember in conducting background
investigations.
 Importance of testing employees
 Organizational performance-The performance of the firm depends on
employees having the right skills and attributes. Thus, they have to be tested
for these skills and attributes
 Hiring Employees is costly-There are a lot of costs involved in hiring an
employee (interviewing time, interviewing cost, supervisor time, training cost
etc.) If they leave suddenly after this, then the cost is a huge loss for the
company
 Legal Obligations - Equal Employment Opportunity (EEO) laws state that the
same testing and selection procedure has to be followed for everyone
 If testing and selection is not done properly, and hired employee commits a
crime within the company, then company is to blame, not the employee for
negligent hiring
 Reliability
 Refers to the consistency of scores obtained by the same person when
retested with the identical or equivalent test i.e. Are the test results stable
over time
 Ex- A person gets 7 on IELTS on Sunday, and 3 on Monday. So, IELTS is not a
reliable test
 Validity
 The accuracy with which the test measures what it is supposed to measure
or fulfills the function it was designed to fill
 A test has to be valid, i.e. measure what it’s supposed to measure, otherwise
it’s not useful
 Ex- IELTS has to measure English language proficiency, not business skill
proficiency
 Types of Validity
 Criterion validity: Validity based on showing that test scores (predictors) are
related to job performance (criterion)
 Ex- Do test scores in this class provide a proper indication of a student’s HR
performance?
 Content validity: A test that is content valid is one that contains a fair sample
of the tasks and skills actually needed for the job
 Ex- Do exam questions in this course provide a proper simulation of the work
of an HR professional?
 Construct validity: A test that is construct valid is one that demonstrates that a
selection procedure measures a construct that is important for successful job
performance.
 Can be characteristics of individuals, such as intelligence, ethics, or
depression
 How to Validate a Test
 Step 1: Analyze the job
 Define Predictors: The human traits and skills that you believe predict job
performance (KSA’s such as communication skills, good time management)
 Define Standards: Ex- Minimum sales of $25000/month, <5 defects per day
 Step 2: Choose the tests
 Test battery (combining different tests) or single test
 Step 3: Administer the test
 Run the test to see whether test scores are correlated with job performance
 Two ways to administer the test
• Concurrent validation
• Predictive validation
 Concurrent Validation
 Run the test on current employees. Compare test scores with
their current performance data
 Advantage: Performance data of current employees is readily
available
 Disadvantage: Current employees are not a good representation
of new employees (for whom you are developing the test.) They
have been given training, and are used to the firm’s culture
 Predictive Validation
 Run the test on job candidates (not employees). For example,
make candidates sit for a written test and an interview, but only
use the interview for hiring. The written test is the experimental
test (for purposes of checking validation)
 How to Validate a Test (cont’d)
 Step 4: Relate Test Scores and Criteria
 Later, compare their on-the-job performance (assuming they
have been hired) with the earlier test scores. Is there any
relation?
 If there is, then the test can be used to predict job performance
(gives a good estimation of performance on the job) i.e. the test
is valid
 This is usually done by an expectancy chart (plotting it on a
graph and finding the relationship)
 Step 5: Cross-Validate and Revalidate: Repeat Step 3 and 4
with a different sample of employees to make sure results are
accurate
Utility Analysis
Knowing that a test predicts performance isn’t always
useful. For example, if it’s going to cost the employer
$1,000 per applicant for the test, and hundreds of
applicants must be tested, the cost of the test may exceed
the benefits. Answering the question, “Does it pay to use
the test?” requires utility analysis.
Validity Generalization
Many employers won’t find it cost-effective to conduct validity studies for
the selection tools they use. These employers must find tests and other
screening tools that have been shown to be valid in other settings
(companies), and then bring them in-house in the hopes that they’ll be valid
there, too.
If the test is valid in one company, to what extent can we generalize those
validity findings to our own company? Validity generalization “refers to the
degree to which evidence of a measure’s validity obtained in one situation
can be generalized to another situation without further study.”
Factors to consider include existing validation evidence regarding using the
test for various specific purposes, the similarity of the subjects with those
in your organization, and the similarity of the jobs
A organization must be able to prove:
 That its tests are related to success or failure on the job
(validity)
 That its tests don’t unfairly discriminate against
minority or nonminority subgroups.
 EEO guidelines and laws apply to all selection devices,
including interviews, applications and references.

© 2005 Prentice Hall Inc. All rights reserved. 6–11

Diversity Counts
Gender Issues in Testing Employers using selection tests
should know that gender issues may distort results. Some
parents and others socialize girls into traditionally female
roles and boys into traditionally male roles. For example,
they may encourage young boys but not girls to make
things with tools, or young girls but not boys to take care
of their siblings. Such encouragement may translate into
differences in how males and females answer items on
and score on, say, tests of vocational interests.
 Test Takers’ Individual Rights and Test Security

 Under the American Psychological Association’s standard,

test takers have the right:
 To privacy and information
 To the confidentiality of test results
 To informed consent regarding use of these results
 To expect that only people qualified to interpret the scores will
have access to them
 To expect the test is fair to all

© 2005 Prentice Hall Inc. All rights reserved. 6–13

 Major types of tests used by employers
1. Achievement
2. Aptitude
3. Interest
4. Per­sonality
5. Intelligence

 Use of testing
 More testing is used as work demands increase.
 Screen out bad or dishonest employees
 Reduce turnover by personality profiling © 2005 Prentice Hall Inc. All rights reserved.
 Types of Tests
 Cognitive Ability Tests (Information Processing-Related)
 Intelligence Tests: Tests of general intellectual abilities
such as memory, vocabulary, verbal fluency, and
numerical ability such as IQ tests
 Aptitude tests: Tests that measure specific mental
abilities, such as inductive and deductive reasoning,
specific mathematical calculations (calculus etc.),
specialized mechanical knowledge etc.

© 2005 Prentice Hall Inc. All rights reserved.

 Which gear will turn the same way as the driver?
Figure 6–5
Source: Reproduced by permission. Copyright 1967, 1969 by The Psychological Corporation, New York, NY. All rights
© 2005 Prentice Hall Inc. All rights reserved.
reserved. Author’s note: 1969 is the latest copyright on this test, which is still the main one used for this purpose. 6–16
 Types of Tests (cont’d)
 Tests of motor abilities: Tests that measure motor abilities, such as
finger dexterity (skill of movements), manual dexterity, and reaction
time etc. (required for pilots, tailors etc.)
 Related to nervous system responses
 Tests of physical abilities: Tests that measure static strength (lifting
weights), dynamic strength (push-ups or pull-ups), body
coordination (skipping rope), and stamina.
 Related to health and physical ability
 Ex- required for military personnel, firefighters, SWAT team etc.

6–17
 Measuring Personality
 Personality test: Tests that use psychological techniques and behavior analysis to
measure aspects of an applicant’s personality
 Can be Open-ended- Picture Essay writing, or “First word that comes to your
mind when you see this” etc.
 Can be Structured-MBTI, Big five personality dimension
 Advantage:
 Can give detailed analysis of an employee’s mind that was not possible to know
through other tests
 Disadvantage:
 Open-ended personality tests are very difficult to measure and use (you might
need a psychologist. Also, proving validity is difficult, very subjective)
https://www.16personalities.com/ check your personality
Big five personality dimension
 Fivebroad dimensions: openness,
conscientiousness, extraversion,
agreeableness, and neuroticism.
You can remember them by using the acronyms
OCEAN or CANOE.
Myers Briggs Type Indicator
The concept of MBTI is that each individual’s personality consists
of 4 dimensions, and each dimension has 2 possibilities. These
dimensions and their corresponding possibilities are:
• Intuition/ Sensing
• Perception/ Judging
• Feeling/ Thinking
• Introversion/ Extraversion
• In total, there are 16 combinations, or 16 personality types, and
are referred to by an abbreviation of four letters. For example,
the ISTJ type represents Introversion (I), sensing (S), thinking (T),
and judgment (J).
 Other types of Tests
 Interest inventories: Comparing interests of an employee (such as
golfing, watching movies, going to parties) with other successful
employees in similar occupations to see if there is a match.
 If there is a match, employee is probably a good fit for the position
 Logic is that people in a certain kind of job have certain kind of
interests
 Achievement tests: Tests that measure what someone has actually
learned (such as written tests (after a training), skill demonstrations
(typing tests etc.)

Test pattern in google https://cpt.hitbullseye.com/Google-Test-Pattern.php

 Work Samples
 Work samples: actual job tasks used in testing applicant’s performance
 Telling candidates to give a demonstration of the actual work
 Ex- for a cashier, operating cash register and counting money
 For an ad designer, prepare a sample print ad
 Work sampling technique: How work samples are conducted.
 First, the work is broken down into separate parts (tasks)
 Then, candidate is asked to do each task
 Reviewer watches candidate and gives score on each task
Ex- Sewing a trouser requires: Taking measurements- 20 secs, Cutting
fabric- 40 secs, Attaching string to needle- 10 secs, Actual stitching- 5
mins, Finishing borders- 2 mins ; Total Time = 8 min 10 secs (compare
with actual time taken)
6–23
 Assessment center
 Management assessment centers: A center in which
managerial candidates are asked to perform real-life
management tasks in hypothetical situations and are scored on
their performance.
 Usually can last for 2-3 days
 Involves around 10-12 candidates (usually)
 Typical skills which are measured in assessment center:
Competencies
Interpersonal skills
Planning
Communication
Problem-solving
Job knowledge
Personality
Leadership
Situational judgment
Intelligence (intellectual or emotional)
 Management assessment centers
 Typical exercises given to candidates include:
 The in-basket/mailbox exercises (administrative time-
management exercise)
 Leaderless group discussion (Group thinking and decision-
making)
 Management games (candidates take the role of opposing
companies in a marketplace and make decisions)
 Individual presentations
 Objective tests (personality, mental ability etc.)
 Interview
A day at the assessment center, available at: https://www.youtube.com/watch?v=T6nVuwr31wQ
6–26
 Work Simulations
 The miniature job training and evaluation approach:
Candidates are given training on how to perform a sample
of the job’s tasks, and then are evaluated on their
performance (prior to hire)
 The method assumes that a person who can learn and
perform the sample of tasks will be able to learn and
perform the job itself; so, learning ability is tested e.g.
Honda
 Realistic job previews: applicants are given realistic
preview of the job so that the employee turnover improves
e.g. Walmart
 Background Investigations and Reference Checks

 Extent of investigations and checks

 Background checks
 Employment Reference checks
 Criminal records
 Driving records
 Reasons for investigations and checks:
 To verify factual information provided by applicants
 To uncover damaging information

© 2005 Prentice Hall Inc. All rights reserved. 6–28

 Background Investigations and Reference Checks (cont’d)

 Sources of information for background checks:

 Former employers
 Current supervisors
 Academic supervisors
 Social media sites

© 2005 Prentice Hall Inc. All rights reserved. 6–29

 Making Background Checks More Useful

 Include on the application form a statement for applicants to sign

explicitly authorizing a background check.
 Use telephone references if possible.
 Be persistent in obtaining information.
 Compare application with the resume
 Ask open-ended questions to elicit more information from
references.
 Use references provided by the candidate as a source for other

references.
© 2005 Prentice Hall Inc. All rights reserved. 6–30
Reasons for pre-employment medical examinations:
 To verify that the applicant meets the physical requirements of
the position
 To discover any medical limitations you should take into account
in placing the applicant
 To establish a record and baseline of the applicant’s health for
future insurance or compensation claims
 To reduce absenteeism and accidents
 To detect communicable diseases that may be unknown to the
applicant
© 2005 Prentice Hall Inc. All rights reserved. 6–31
 Substance Abuse Screening
 Reasons of screening:
 Before formal hiring
 After a work accident
 Presence of obvious behavioral symptoms
 Random or periodic basis
 Transfer or promotion to new position
 Types of tests:
 Blood testing
 Drug testing
© 2005 Prentice Hall Inc. All rights reserved. 6–32
Further reading
 Chapter 6, Dessler, G. (2017), Human
Resource Management. Pearsons.
 https://www.youtube.com/watch?v=1
RTeEPyktKY
 Personality Quiz, The Myers Briggs
Type Indicator (MBTI)
https://www.youtube.com/watch?v=r0
N2OlqwE-w