PART TWO RECRUITMENT AND PLACEMENT C H A P T E R T S i x Employee Testing And Selection 6 Lecture Outline Strategic Overview Why Careful Selection is Important Basic Testing Concepts Reliability Validity How to Validate a Test EEO Aspects of Testing Test Takers’ Individual Rights and Test Security Using Tests at Work Computer & Online Testing Types of Tests Tests of Cognitive Abilities Tests of Motor and Physical Abilities Measuring Personality and Interests Achievement Tests Work Samples and Simulations Work Sampling for Employee Selection Management Assessment Centers Video-Based Situational Testing The Miniature Job Training and Evaluation Approach Realistic Job Preview Background Investigations and Other Selection Background Investigations and Reference Checks Using Pre-employment Information Services The Polygraph and Honesty Testing Graphology Physical Exams Substance Abuse Screening Complying with Immigration Law HRIS: Comprehensive Automated Applicant Tracking & Screening Systems In Brief: This chapter gives an overview of the selection process, testing concepts, types of tests, and selection techniques. It also addresses legal and ethical questions surrounding the area of testing and selection. Interesting Issues: Reference checking is part of the care an employer must take to ensure that the potential employee will not pose a threat to current employees or customers. Employers who fail to exercise “due diligence” in checking a job candidate’s background may find themselves legally liable if the candidate is hired and subsequently uses the job to commit a crime. Liability may even extend to offenses that occur outside of work time. ANNOTATED OUTLINE I. Why Careful Selection Is Important Slecting the right employees is important for three main reasons. 1) employees with the right skills and attributes will perform more effectively; 2) the cost of making a wrong hire can become exhorbitant considering the time and money invested in the selection and training process; and 3) the legal implications of incompetent or negligent hiring II. Basic Testing Concepts A. Reliability refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests. B. Validity refers to evidence that performance on a test is a valid predictor of subsequent performance on the job. 1. Criterion Validity shows that scores on the test (predictors) are related to job performance. 2. Content Validity shows that the test contains a fair sample of the tasks and skills actually needed for the job in question. Teaching Tip: The difference between reliability and validity is sometimes difficult for students to understand. Explain that if 100 accident-prone, careless applicants took the same test and scored well on it, the test would be reliable because the results are consistent. However, if the purpose of the test was to identify safety conscious applicants, it would not be valid as a test because it does not predict good safety performance on the job, the very thing it was intended to measure. C. How to Validate a Test 1. Analyze the Job and write job descriptions and job specifications. 2. Choose the Tests that measure the attributes (predictors) important for job success. 3. Administer the Test selected to old or new employees for concurrent and predictive validation. 4. Relate Test Scores and Criteria through a correlation analysis, which shows the degree of statistical relationship between (1) scores on the test and (2) job performance. 5. Cross-validate and Revalidate by performing steps 3 and 4 on a new sample of employees. Testing Guidelines: 1) use tests as supplements; 2) validate the tests; 3) analyze all your current hiring and promotion standards; 4) keep accurate records; 5) begin your validation program now; 6) use a certified psychologist; and 7) test conditions are important. D. Equal Employment Opportunity Aspects of Testing – Employers must be able to prove that their tests are related to success or failure on the job (validity) and that their tests don’t unfairly discriminate against minority or nonminority subgroups. If a test discriminates, employers can choose an alternative selection procedure; show that the test is valid; or monitor the selection test to see if it results in disparate impact. E. Test Takers Individual Rights and Test Security – Test takers have certain rights to privacy and information under the American Psychological Association’s (APA) standard for educational and psychological tests. 1. Legal Privacy Issues – Supreme Court decisions provide protection against the disclosure of employee information to people outside the company. Organizations should train supervisors regarding confidentiality and adopt a “need to know” policy to protect information. Disclosure of procedures may also limit liability. The New Workforce: Gender Issues in Testing. Employers using selectiion testing should realize that test results may be distorted by gender. Know Your Employment Law: The Issue of Privacy. In addition to the APA’s test privacy and security standard, certain other protections regarding an employee’s right to privacy are embedded in U.S. law. Guidelines for employers to follow include 1)training supervisors regarding the importance of employee confidentiality; 2) adopt a "need to know" policy"; and 3) disclose procedures. F. Using Tests at Work – Various types of tests are widely used by employers today, including those for basic skills, job skills and psychological measurement. 1. Test Scoring – may be automated and done by the employer, or professionally scored and interpreted by psychologists outside the firm. G. Computerized – Online Testing - is increasing replacing pencil-and-paper and manual tests. ➢ NOTES Educational Materials to Use III. Types of Tests A. Tests of Cognitive Abilities – Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning. 1. Intelligence Tests are tests of general intellectual abilities ranging from memory, vocabulary, verbal fluency to numerical ability. 2. Specific Cognitive Abilities (aptitude) include inductive and deductive reasoning, verbal comprehension, memory, and numerical ability. B. Tests of Motor and Physical Abilities – Employers may use various tests to measure such motor abilities as finger dexterity, manual dexterity, and reaction time. They may also want to measure such physical abilities as static strength, dynamic strength, body coordination and stamina. C. Measuring Personality and Interests – can be used to assess personal characteristics as attitude, motivation, and temperament.(See Figure 6-6) 1. What Personality Tests Measure– Tests measure basic aspects of an applicant’s personality, such as introversion, stability and motivation. 2. The "Big Five" - Industrial psychologists emphasize five personality dimensions as they apply to personnel testing: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience. 3. Caveats – Personality tests are the most difficult tsts to evaluate and use. Recent court decisions indicated that the Minnesota Multiphasic Personality Inventory (MMPI) is a medical test because it can screen out applicants with psychological impairment, and that its use before an employment offer is made is therefore a violation of ADA. 4. Interest Inventories compare one’s interests with those of people in various occupations. 5. Achievement Tests – measure what a person has learned. ➢ NOTES Educational Materials to Use IV. Work Samples and Simulations A. Work Sampling for Employee Selection 1. Rationale for Work Sampling – Work sampling technique measures how a candidate actually performs some of the job’s basic tasks making it harder for applicants to fake answers. This method tends to be fairer and exhibit better validity than test designed to predict performance. 2. Developing a Work Sampling Procedure – The basic procedure is to choose several tasks crucial to performing the job in question and to test applicants on those identified tasks. B. Management Assessment Centers Provide simulations in which candidates perform realistic management tasks, under the observation of experts who appraise each candidate’s potential. Simulated exercises include in-basket, leaderless group discussion, management games, individual presentations, objective tests, and interviews. 1. Effectiveness – Most experts view assessment centers as effective for selecting and promoting management candidates, despite the extra cost to develop the centers. C. Video-Based Situational Testing typically presents the candidate with several scenarios, each followed by a multiple-choice question. D. The Miniature Job Training and Evaluation Approach involves training candidates to perform a sample of job tasks, and evaluating their performance. E. Realistic Job Previews – Being explicit about work schedules, preferences and other job standards at the point of interview can help reduce turnover later. When You’re on Your Own: HR for Line Managers and Entrepreneurs. Employee Testing and Selection. – In many firms, the HR department does little more than preliminary prescreening and followup with background checks, drug, and physical exams. Managers who want to screen some of their own job applicants more formally can devise and use screening tools with obvious face validity. Steps should be taken to keep within the guidelines discussed in this chapter. There are a number of tools available that are easy to administer. V. Background Investigations and Other Selection Techniques A. Background Investigations and Reference Checks – Most employers check and verify an applicant’s background information and references, including driving record, check for criminal charges or convictions, and credit check. 1. Aims – The main reasons for conducting investigations into an applicant’s background are to verify factual information and to uncover damaging information to help prevent losses. 2. Types of Background Checks – Typically the applicant’s current and/or former position and salary are verified. Commercial credit rating companies and other services can provide information about credit standing, criminal, employment and educational histori. Employers often check social networking site postings online. 3. Effectiveness – Reference letters are not viewed as very useful. Fewer than half of HR managers state that they were able to obtain adequate information about candidates. 4. Legal Issues: Defamation - Laws (like the Fair Credit Reporting Act of 1970) increase the likelihood that rejected applicants will have access to the background information. The rejected applicant has various legal remedies including the right to sue for defamation. 5. Legal Issues: Privacy – Truth is not always a defense. Employees can sue employers for disclosing true but embarrassing private facts to those without a need to know. 6. Supervisor Reluctance – Rather than damage a former employee’s chance for a job, supervisors may sometimes give good references. 7. Employer Guidelines – Defensible reference policies include having only authorized managers provide information about employees. Some employers will only provide dates of employment, salary and position title to reference seekers. 8. Making Background and Checks More Useful – Employers should: include on their application forms a statement for applicants to sign, explicitly authorizing a background check; rely more on telephone references than written ones; ask open-ended questions, use each reference as a sorce for another and watch for “red flags.”. An example of a reference checking form is illustrated in figure 6-8. B. Using Preemployment Information Services - Various federal and state laws govern how employers acquire and use applicants' and employees' background information. Compliance involves four steps: 1) Disclosure and authorization; 2) Certification; 3) Providing copies of the reports; and 4) Notice after adverse action. C. The Polygraph and Honesty Testing A polygraph (lie detector) is a device that measures physiological changes like increased perspiration. Current law prevents most employers engaged in interstate commerce from using these tests for preemployment screening or during the course of employment. Local, state and federal government employers can continue to use the tests. 1. Paper-and-Pencil Tests – Paper-and-pencil honesty tests are psychological tests designed to predict job applicants’ proneness to dishonesty and other forms of counter-productive behavior. 2. What Employers Can Do – Employers can: ask blunt questions; listen, rather than talk; ask for a credit check; check all references; consider paper-and-pencil honesty tests and psychological tests as a part of your honesty-screening program; test for drugs; establish a search- and-seizure policy; and conduct searches. D. Graphology (handwriting analysis) assumes that handwriting reflects basic personality tests. E. Physical Exams – Once an offer is made and the person is hired, a medical exam is usually the next step in the selection process. ➢ NOTES Educational Materials to Use F. Substance Abuse Screening – Because drug abuse is a serious problem for employers, it is common practice for most employers to conduct drug screening just before employees are formally hired. 1. Ethical Issues – Because drug testing indicates only the presence or absence of drugs, it can’t measure the level of impairment or addiction. Some argue that the testing is therefore not justifiable if workplace safety is the motivator for using tests. 2. Legal Issues – Former drug users may be protected under ADA. Privacy rights are also often cited. G. Complying with Immigration Law – Under the Immigration Reform and Control Act of 1986, employees hired in the U.S. have to prove they are eligible to work in the U.S. Immigrants face increasing difficulty in entering the U.S. Figure 6-10 outlines procedures to comply with immigration laws. 1. Proof – Restrictions on hiring undocumented workers have tightened. Employers should be careful to obtain and verify documents. 2. Discrimination – The I-9 Employment Eligibility Verification form must not be used to discriminate based on race or country of national origin. H. HRIS: Automated Applicant Tracking Systems and Applicant Screening - These systems are an example of technology use in HR. These systems help companies screen applicants in three ways: 1)"Knock out" applicants who do not meet minimum, non-negotiable job requirements; 2) Test and screen applicants online including web- based skills testing, cognitive skills testing, and psychological testing; and 3) discover "hidden talents" by identifying talents in the candidate pool that lend themselves to job matches at the company that the applicant didn't know existed when he applied. Minimum functionality requirements of ATS are discussed here. Figure 6-11 tells what to look for in an ATS system. ➢ NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. What is the difference between reliability and validity? In what respects are they similar? Reliability is the consistency of scores obtained by the same persons when retested with identical tests or with an equivalent form of a test. It is a measure of internal consistency of the instrument. Validity is the degree to which a test measures what it is purported to measure. It is a measure of external consistency. They are similar in that both are concerned with aspects of consistency of the instrument, and that reliability is a necessary condition for validity. 2. Explain how you would go about validating a test. How can this information be useful to a manager? The validation process consists of five steps: job analysis, selecting a test, administering a test, relating the test scores and the criteria, and cross validation and revalidation. Using valid selection devices will enable the manager to develop objective information in the selection process and should result in more effective selection decisions. 3. Explain why you think a certified psychologist who is specially trained in test construction should (or should not) always be used by a small business that needs a test battery. Due to the complex and legal nature of this activity, the use of a certified psychologist may be the only safe way to accomplish your objectives. However, because of the high salary and limited job scope of such a specialist, a definite drawback to this approach is the cost involved. Perhaps more "direct" tests can be developed which require less sophistication: motor and physical abilities tests (many state employment agencies provide this service), on-job knowledge tests, and work sampling. This chapter also presents some alternative testing tools that are relatively easy to administer and low in cost that are reasonable choices for small employers to use. 4. Give some examples of how interest inventories could be used to improve employee selection. In doing so, suggest several examples of occupational interests that you believe might predict success in various occupations including college professor, accountant, and computer programmer. Interest inventories can improve employee selection by identifying individuals with similar interests to those reported by a substantial percentage of successful incumbents in an occupation. This should clearly increase the likelihood that the applicants will be successful in their new jobs. Interests that one might expect: accountant: math, reading, music; college professor: public speaking, teaching, counseling; computer programmer: math, music, computers. 5. Why is it important to conduct pre-employment background investigations? How would you go about doing so? Past behavior is the best predictor of future behavior. It is important to gain as much information as possible about past behavior to understand what kinds of behavior one can expect in the future. Knowledge about attendance problems, insubordination issues, theft, or other behavioral problems can certainly help one avoid hiring someone who is likely to repeat those behaviors. The section on background investigations and reference checks has some excellent guidelines for background checks. 6. Explain how you would get around the problem of former employers being unwilling to give bad references on their former employees? Since many companies have strict policies regarding the release of information about former employees, it may not be possible to get information at all, good or bad. However, conducting a thorough reference audit by contacting at least two superiors, two peers, and two subordinates will help increase the chance that you will find someone who is willing to give you the information you need. Also, making the contacts by phone rather than in writing will increase their belief that the information may not be traced back to them. Using the additional technique of asking references for the name of someone else who might be familiar with the applicant's performance will also increase the possibility of getting more information. 7. How can employers protect themselves against negligent hiring claims? There is a list of ways employers can protect themselves against negligent hiring claims discussed in the section on why careful selection is important at the beginning of the chapter. Employers can protect themselves against negligent hiring claims by conducting thorough background checks and verifying candidates' qualifications and employment history. Additionally, implementing clear hiring policies and consistent interview processes helps ensure due diligence is followed. DESSLER COMPANION WEB SITE We invite you to visit the Dessler homepage (http://www.prenhall.com/dessler) on the Prentice Hall Web site for the best online business support available. This site provides professors with a customized course Web site, including new communication tools, one-click navigation of chapter content, and great resources, such as Internet Resources, an HRCI Exam Prep Guide, assessment exercises, and more. INDIVIDUAL AND GROUP ACTIVITIES 1. Write a short essay discussing some of the ethical and legal considerations in testing. State and federal laws, EEOC guidelines, and court decisions require that you must be able to prove that your tests are related to success or failure on the job and that they are not having an adverse impact on members of a protected group. Test takers also have certain basic rights to privacy and information. The test taker also has the right to expect that the test is equally fair to all test takers. 2. Working individually or in groups, develop a list of selection techniques that you would suggest your dean use to hire the next HR professor at your school. Also, explain why you chose each selection technique. The students should use the selection information presented in the chapter to list their selection techniques of choice with their supporting rationale. 3. Working individually or in groups, contact the publisher of a standardized test such as the Scholastic Assessment Test and obtain from them written information regarding the test's validity and reliability. Present a short report in class discussing what the test is supposed to measure and the degree to which you think the test does what it is supposed to do, based on the reported validity and reliability scores. Encourage students to contact different sources; it may be a good idea to have a sign-up sheet so that no two students or groups are gathering information on the same instruments. Students should be able to clearly relate validity and reliability scores to effectiveness. 4. The HRCI "Test Specifications" appendix at the end of this book (pages 726-734) lists the knowledge someone studying for the HRCI certification exam needs to know in each area of human resource management (such as in Strategic Management, Workforce Planning, and Human Resource Development). In groups of 4-5 students, do four things: (1) review that appendix now; (2) identify the material in this chapter that relates to the required knowledge the appendix lists; (3) write four multiple choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team's questions in front of the class, so the students in other teams can take each other's exam questions. Material included in this chapter that relates to the HRCI certification exam include establishing and Implementing selection procedures of testing; reference and background checking; post-offer employment activities; knowledge of reliability and validity of selection tests/tools/methods; and use and interpretation of selection tests. Sample multiple choice questions: 1. Criterion Related validity: a. is a test's first major requirement and refers to its consistency b. demonstrates that those who do well on the test also do well on the job (correct answer) c. shows that the test constitutes a fair sample of the content of the job d. none of the above 2. Test Reliability: a. Is a test's first major requirement and refers to its consistency(correct answer) b. Demonstrates that those who do well on the test also do well on the job c. Shows that the test constitutes a fair sample of the content of the job d. None of the above 3. Tests that measure general reasoning ability and mental abilities are called a. Personality and Interest Tests b. Tests of Motor and Physical Abilities c, Tests of Cognitive Abilities (correct answer) d. Achievement Tests 4. How employers acquire and use applicants' background information is governed by: a. The ADA b. The Fair Credit Reporting Act (correct answer) c. The Federal Rehabilitation Act of 1973 d. The Immigration Reform and Control Act of 1986 Experiential Exercise: A Test for a Reservation Clerk This exercise gives the students the opportunity to practice designing a test to measure one specific ability for applicants. Application Case: Where's My Czar? 1. What should this position’s job description look like? Students should list the types of activities, responsibilities, and qualifications that they believe should be included. 2. What are the ideal job specifications for the person in this position? Students should list (and be ready to defend) the specifications that they believe would be needed. 3. How should we have gone about recruiting and screening for this position? What selection tools, specifically, would you use? Many tools could be included, such as background checks, interviews, etc. 4. Where do you think we went wrong? It appears that they went wrong in not specifying that a requirement for the job would be to not have outsourced manufacturing overseas. Continuing Case 3: Honesty Testing at Carter Cleaning Company 1. What would be the advantages and disadvantages to Donna’s company of routinely administering honest tests to all its employees? Polygraph testing raises a large number of legal and moral issues; issues Carter Cleaning would best avoid. Use of some of the available “paper and pencil” honesty tests may be a possibility. In general, these have been shown to be reasonably reliable and valid. They are still controversial. The costs associated with these tests may also make them prohibitive to a small operation like Jennifer’s. EXPERIENTIAL EXERCISES & CASES 2. Specifically, what other screening techniques could the company use to screen out theft-prone employees, and how exactly could these be used? More thorough background checks are a recommend technique to eliminate potential thieves. Some firms chose to contract this out to a private security agency (Cost may be an issue to Jennifer). However, the company can quickly check to see if savings from reduced theft would offset the cost of an outside agency. As part of the job preview, Carter must communicate that dishonesty and theft will not be tolerated. Further company policies regarding theft should be clearly communicated to new and existing employees. 3. How should her company terminate employees caught stealing, and what kind of procedure should be set up for handling reference calls about these employees when they go to other companies looking for jobs? Terminating employees for theft should include the involvement of proper authorities and should only be done when there is absolute proof of the theft and who committed it. Such an action will also send a message to the other employees that you will not tolerate theft of company resources. While many employers are reluctant to prosecute employees for theft, developing evidence with police and through the courts can be beneficial in providing future employers of the individual with truthful and factual information. Translating Strategy into HR Policies and Practice Case: The Hotel Paris Testing - The continuing case study of Hotel Paris is discussed here. In this example, Lisa Cruz, the HR manager, wants to design a battery of tests that will produce employees who can help the hotel meet its strategic objectives. Questions 1. Provide a detailed example of the front desk work sample test. Students should begin by discussing the types of tasks a front desk clerk is responsible for. Figure 6-7 is an example of the type of question that should be on this test. 2. Provide a detailed example of two possible personality test questions. Answers will vary. Figure 6-6 gives excellent examples. 3. What other tests would you suggest to Lisa, and why would you suggest them? Because front desk employees usually handle credit cards and make cash transactions, Lisa should consider the benefits of paper and pencil honesty testing. KEY TERMS negligent hiring Hiring workers with criminal backgrounds without proper safeguards. reliability The characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests. test validity The accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill. criterion validity A type of validity based on showing that scores on the test (predictors) are related to job performance. content validity A test that is content--valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question. expectancy chart A graph showing the relationship between test scores and job performance for a large group of people. interest inventory A personal development and selection device that compares the person’s current interests with those of others now in various occupations so as to determine the preferred occupation for the individual. work samples Actual job tasks used in testing applicants' performance. work sampling technique A testing method based on measuring performance on actual job tasks. management assessment A situation in which management candidates are asked to make center decisions in hypothetical situations and are scored on their performance. It usually also involves testing and the use of management games. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R Employee Testing and Selection Chapter 6 Part 2 | Recruitment and Placement 6–2 After studying this chapter, you should 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. 5. List eight tests you could use for employee selection, and how you would use them. 6. Explain the key points to remember in conducting background investigations. 6–3 Why Careful Selection is Important Organizational Performance Legal Obligations and Liability The Importance of Selecting the Right Employees Costs of Recruiting and Hiring 6–4 Avoiding Negligent Hiring Claims • Carefully scrutinize information on employment applications. • Get written authorization for reference checks, and check references. • Save all records and information about the applicant. • Reject applicants for false statements or conviction records for offenses related to the job. • Balance the applicant’s privacy rights with others’ “need to know.” • Take immediate disciplinary action if problems arise. 6–5 Basic Testing Concepts • Reliability ➢Consistency of scores obtained by the same person when retested with identical or equivalent tests. ➢Are test results stable over time? • Validity ➢Indicates whether a test is measuring what it is supposed to be measuring. ➢Does the test actually measure what it is intended to measure? 6–6 FIGURE 6–1 Sample Picture Card from Thematic Apperception Test Source: Reprinted by permission of the publishers from Henry A. Murray, THEMATIC APPERCEPTION TEST, Plate 12F, Cambridge, Mass: Harvard University Press, 1943. 6–7 Types of Validity Criterion Validity Content Validity Test Validity Face Validity 6–8 How to Validate a Test 1 Relate Your Test Scores and Criteria: scores versus actual performance Choose the Tests: test battery or single test Steps in Test Validation Analyze the Job: predictors and criteria Administer the Tests: concurrent or predictive validation 2 3 4 Cross-Validate and Revalidate: repeat Steps 3 and 4 5 with a different sample 6–9 FIGURE 6–2 Examples of Web Sites Offering Information on Tests or Testing Programs • www.hr-guide.com/data/G371.htm Provides general information and sources for all types of employment tests. • http://buros.unl.edu/buros/jsp/search.jsp Provides technical information on all types of employment and nonemployment tests. • www.ets.org/testcoll Provides information on over 20,000 tests. • www.kaplan.com Information from Kaplan test preparation on how various admissions tests work. • www.assessments.biz One of many firms offering employment tests. 6–10 FIGURE 6–3 Expectancy Chart Note: This expectancy chart shows the relation between scores made on the Minnesota Paper Form Board and rated success of junior draftspersons. Example: Those who score between 37 and 44 have a 55% chance of being rated above average and those scoring between 57 and 64 have a 97% chance. 6–11 TABLE 6–1 Testing Program Guidelines 1. Use tests as supplements. 2. Validate the tests. 3. Monitor your testing/selection program. 4. Keep accurate records. 5. Use a certified psychologist. 6. Manage test conditions. 7. Revalidate periodically. 6–12 Test Takers’ Individual Rights and Test Security • Under the APA’s standard for educational and psychological tests, 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. 6–13 Legal Privacy Issues • Defamation ➢ Libeling or slandering of employees or former employees by an employer. • Avoiding Employee Defamation Suits 1. Train supervisors regarding the importance of employee confidentiality. 2. Adopt a “need to know” policy. 3. Disclose procedures impacting confidentially of information to employees. 6–14 FIGURE 6–4 Sample Test Source: Courtesy of NYT Permissions. 6–15 Using Tests at Work • Major Types of Tests ➢Basic skills tests ➢Job skills tests ➢Psychological tests • Why Use Testing? ➢Increased work demands = more testing ➢Screen out bad or dishonest employees ➢Reduce turnover by personality profiling 6–16 Computerized and Online Testing • Online tests ➢Telephone prescreening ➢Offline computer tests ➢Virtual “inbox” tests ➢Online problem-solving tests • Types of Tests ➢Specialized work sample tests ➢Numerical ability tests ➢Reading comprehension tests ➢Clerical comparing and checking tests 6–17 Types of Tests Cognitive (Mental) Abilities Achievement Motor and Physical Abilities Personality and Interests What Tests Measure 6–18 FIGURE 6–5 Type of Question Applicant Might Expect on a Test of Mechanical Comprehension 6–19 FIGURE 6–6 Sample Personality Test Items Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 9. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center. 6–20 The “Big Five” Extraversion Emotional Stability/ Neuroticism Agreeableness Openness to Experience Conscientiousness 6–21 FIGURE 6–7 Example of a Work Sampling Question 6–22 Work Samples and Simulations Work Samples Miniature Job Training and Evaluation Management Assessment Centers Video-Based Situational Testing Measuring Work Performance Directly 6–23 TABLE 6–2 Evaluation of Assessment Methods on Four Key Criteria Source: Elaine Pulakos, Selection Assessment Methods, SHRM Foundation, 2005, p. 17. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center. Assessment Method Validity Adverse Impact Costs (Develop/ Administer) Applicant Reactions Cognitive ability tests High High (against minorities) Low/low Somewhat favorable Job knowledge test High High (against minorities) Low/low More favorable Personality tests Low to moderate Low Low/low Less favorable Biographical data inventories Moderate Low to high for different types High/low Less favorable Integrity tests Moderate to high Low Low/low Less favorable Structured interviews High Low High/high More favorable Physical fitness tests Moderate to high High (against females and older workers) High/high More favorable Situational judgment tests Moderate Moderate (against minorities) High/low More favorable Work samples High Low High/high More favorable Assessment centers Moderate to high Low to moderate, depending on exercise High/high More favorable Physical ability tests Moderate to high High (against females and older workers) High/high More favorable Note: There was limited research evidence available on applicant reactions to situational judgment tests and physical ability tests. However, because these tests tend to appear very relevant to the job, it is likely that applicant reactions to them would be favorable. 6–24 Background Investigations and Reference Checks • Investigations and Checks ➢Reference checks ➢Background employment checks ➢Criminal records ➢Driving records ➢Credit checks • Why? ➢To verify factual information provided by applicants. ➢To uncover damaging information. 6–25 FIGURE 6–8 Reference Checking Form Source: Society for Human Resource Management, © 2004. Reproduced with permission of Society for Human Resource Management in the Format Textbook via Copyright Clearance Center. 6–26 Background Investigations and Reference Checks (cont’d) Former Employers Current Supervisors Written References Social Networking Sites Commercial Credit Rating Companies Sources of Information 6–27 Limitations on Background Investigations and Reference Checks Background Investigations and Reference Checks Supervisor Reluctance Employer Guidelines Legal Issues: Privacy Legal Issues: Defamation 6–28 Making Background Checks More Useful 1. Include on the application form a statement for applicants to sign explicitly authorizing a background check. 2. Use telephone references if possible. 3. Be persistent in obtaining information. 4. Use references provided by the candidate as a source for other references. 5. Ask open-ended questions to elicit more information from references. 6–29 Using Preemployment Information Services 1 Notice of adverse action to applicant/employee Employer certification to reporting agency Acquisition and Use of Background Information Disclosure to and authorization by applicant/employee Providing copies of reports to applicant/employee 2 3 4 6–30 TABLE 6–3 Collecting Background Information Suggestions for collecting background information include the following: 1. Check all applicable state laws. 2. Review the impact of federal equal employment laws. 3. Remember the Federal Fair Credit Reporting Act. 4. Do not obtain information that you’re not going to use. 5. Remember that using arrest information will be highly suspect. 6. Avoid blanket policies (such as “we hire no one with a record of workers’ compensation claims”). 7. Use information that is specific and job related. 8. Keep information confidential and up to date. 9. Never authorize an unreasonable investigation. 10. Make sure you always get at least two forms of identification from the applicant. 11. Always require applicants to fill out a job application. 12. Compare the application to the résumé (people tend to be more imaginative on their résumés than on their application forms, where they must certify the information). 13. Particularly for executive candidates, include background checks of such things as involvement in lawsuits, and of articles about the candidate in local or national newspapers. 14. Separate the tasks of (1) hiring and (2) doing the background check (a recruiter or supervisor anxious to hire someone may cut corners when investigating the candidate’s background). Source: Adapted from Jeffrey M. Hahn, “Pre-Employment Services: Employers Beware?” Employee Relations Law Journal 17, no. 1 (Summer 1991), pp. 45–69; and Shari Caudron, “Who Are You Really Hiring?”, Workforce, 81, no. 12 (November 2002), pp. 28–32. 6–31 The Polygraph and Honesty Testing • Employee Polygraph Protection Act of 1988 ➢Generally prohibits polygraph examinations by all private employers unless: ❖ The employer has suffered an economic loss or injury. ❖ The employee in question had access to the property. ❖ There is a reasonable prior suspicion. ❖ The employee is told the details of the investigation, as well as questions to be asked on the polygraph test itself. ➢Exceptions: ❖ Private security employees ❖ Employees with access to drugs ❖ National defense and security (FBI, DOE, and DOJ) 6–32 Honesty Testing Programs: What Employers Can Do • Antitheft Screening Procedure: ➢Ask blunt questions. ➢Listen, rather than talk. ➢Do a credit check. ➢Check all employment and personal references. ➢Use paper-and-pencil honesty tests and psychological tests. ➢Test for drugs. ➢Establish a search-and-seizure policy and conduct searches. 6–33 FIGURE 6–9 Handwriting Exhibit Used by Graphologist Source: Kathryn Sackhein, Handwriting Analysis and the Employee Selection Process (New York: Quorum Books, 1990), p. 45. Reproduced with permission of Greenwood Publishing Group, Inc. 6–34 Physical Examination • Reasons for preemployment medical examinations: ➢To verify that the applicant meets the physical requirements of the position. ➢To discover any medical limitations to be taken 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. 6–35 Substance Abuse Screening • Types 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 ➢Urinalysis ➢Hair follicle testing 6–36 Substance Abuse Screening (cont’d) Safety: Impairment vs. Presence Recreational Use vs. Addiction Americans with Disabilities Act Drug Free Workplace Act of 1988 Intrusiveness of Procedures Accuracy of Tests Ethical and Legal Issues 6–37 FIGURE 6–10 Procedure in Complying with Immigration Law 1. Hire only citizens and aliens lawfully authorized to work in the United States. 2. Advise all new job applicants of your policy. 3. Require all new employees to complete and sign the verification form (the “I-9 form”) designated by the Immigration and Naturalization Service (INS) to certify that they are eligible for employment. 4. Examine documentation presented by new employees, record information about the documents on the verification form, and sign the form. 5. Retain the form for three years or for one year past the employment of the individual, whichever is longer. 6. If requested, present the form for inspection by INS or Department of Labor officers. No reporting is required. 6–38 Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening Systems “Knock out” applicants who do not meet job requirements Can match “hidden talents” of applicants to available openings Benefits of Applicant Tracking Systems Allow employers to extensively test and screen applicants online 6–39 FIGURE 6–11 Checklist: What to Look for in an Applicant Tracking System (ATS) The employer thinking of adopting an ATS should seek one that meets several minimum functionality requirements. Among other things, the ATS should be: • Easy to use. • Capable of being integrated into the company’s existing HRIS platform, so that, for instance, data on a newly hired candidate can flow seamlessly into the HRIS payroll system. • Able to capture, track, and report applicant EEO data. • Able to provide employee selection performance metrics reports, including “time to fill,” “cost to hire,” and “applicant source statistics.” • Able to facilitate scheduling and tracking of candidate interviews, email communications, and completed forms, including job offers. • Able to provide automated screening and ranking of candidates based upon job skill profiles. • Able to provide an internal job posting service that supports applications from current employees and employee referral programs. • Able to cross-post jobs to commercial job boards such as www.monster.com. • Able to integrate the ATS job board with your company’s own Web site, for instance, by linking it to your site’s “careers” section. • Able to provide for requisition creation and signoff approvals. 6–40 K E Y T E R M S negligent hiring reliability test validity criterion validity content validity expectancy chart interest inventory work samples work sampling technique management assessment center situational test video-based simulation miniature job training and evaluation Solution Manual for Human Resource Management Gary Dessler 9780133029864, 9789353942205, 9780135226803, 9780136089964, 9780134235455, 9780130141248, 9780131746176
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