Employee Testing and Selection

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THIS CHAPTER INCLUDES:
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.

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WHY CAREFUL
SELECTION IS IMPORTANT
The importance of selecting the right
employees
 Organizational performance always depends in part on
subordinates having the right skills and attributes.
 Recruiting and hiring employees is costly.
 The legal implications of incompetent hiring
 EEO laws and court decisions related to nondiscriminatory selection
procedures
 The liability of negligent hiring of workers with questionable
backgrounds

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AVOIDING NEGLIGENT
HIRING CLAIMS
Carefully scrutinize information supplied by the applicant on his or
her employment application.
Get the applicant’s written authorization for reference checks, and
carefully check references.
Save all records and information you obtain about the applicant.
Reject applicants who make false statements of material facts or who
have conviction records for offenses directly related and important to
the job in question.
Balance the applicant’s privacy rights with others’ “need to know,”
especially when you discover damaging information.
Take immediate disciplinary action if problems arise.
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BASIC TESTING
CONCEPTS
Reliability
 The consistency of scores obtained by the same person when
retested with the identical or equivalent tests.
 Are the test results stable over time?

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.
 Does the test actually measure what we need for it to measure?

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 SAMPLE PICTURE CARD FROM
THEMATIC APPERCEPTION TEST

How do you interpret

this picture?

Source: Harvard University Press. Used with permission. Figure 6–1

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TYPES OF VALIDITY

Criterion validity
 A type of validity based on showing that scores on the test
(predictors) are related to job performance (criterion).
 Are test scores in this class related to students’ knowledge of human resource
management?

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 in question.
 Do the test questions in this course relate to human resource management topics?
 Is taking an HR course the same as doing HR?

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HOW TO VALIDATE A
TEST
Step 1: Analyze the job
 Predictors: job specification (KSAOs)
 Criterion: quantitative and qualitative measures of job success

Step 2: Choose the tests

 Test battery or single test?

Step 3: Administer the test

 Concurrent validation
 Current employees’ scores with current performance
 Predictive validation
 Later-measured performance with prior scores

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HOW TO VALIDATE A
TEST (CONT’D)
Step 4: Relate Test Scores and Criteria
 Correlation analysis
 Actual scores on the test with actual performance

Step 5: Cross-Validate and Revalidate

 Repeat Step 3 and Step 4 with a different sample of employees.

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 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.
Figure 6–3
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 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.

Table 6–1
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 SAMPLE TEST

Source: Courtesy of NYT Permissions.

Figure 6–4
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TEST TAKERS’ INDIVIDUAL
RIGHTS AND TEST SECURITY
Under the American Psychological Association’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.

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USING TESTS AT WORK
Major types of tests used by employers
 Basic skills tests (45%)
 Drug tests (47%)
 Psychological tests (33%)

Use of testing
 Less overall testing now but more testing is used as specific job skills and
work demands increase.
 Screen out bad or dishonest employees
 Reduce turnover by personality profiling

Source of tests
 Test publishers

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COMPUTER-INTERACTIVE
TESTING
Types of tests
 Specialized work sample tests
 Numerical ability tests
 Reading comprehension tests
 Clerical comparing and checking tests

Online tests
 Telephone prescreening
 Offline computer tests
 Virtual “inbox” tests
 Online problem solving tests

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 TYPES OF TESTS
Tests of cognitive abilities (Intelligence test)
Motor and Physical Abilities
Personality and interests
Achievement tests
The Polygraph and Honesty Testing
Graphology
Physical Examination
Drug Screening
Management Assessment Centers
Work Sampling

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TYPES OF TESTS

Tests of cognitive abilities

Intelligence Tests
 Tests of general intellectual abilities that measure a range of
abilities, including memory, vocabulary, verbal fluency, and
numerical ability.
Aptitude tests
 Tests that measure specific mental abilities, such as inductive and
deductive reasoning, verbal comprehension, memory, and
numerical ability.

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TYPES OF TESTS (CONT’D)

Tests of motor abilities

 Tests that measure motor abilities, such as finger dexterity, manual
dexterity, and reaction time.

Tests of physical abilities

 Tests that measure static strength, dynamic strength, body
coordination, and stamina.

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 PROBLEM FROM THE TEST OF
MECHANICAL COMPREHENSION

Which gear will turn the same way as the driver?

Source: Reproduced by permission. Copyright 1967, 1969 by The Psychological Corporation, New York, NY. All rights
reserved. Author’s note: 1969 is the latest copyright on this test, which is still the main one used for this purpose. Figure 6–5
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MEASURING
PERSONALITY AND
INTERESTS
Personality tests
 Tests that use projective techniques and trait inventories
to measure basic aspects of an applicant’s personality,
such as introversion, stability, and motivation.
 Disadvantage
 Personality tests—particularly the projective type—are the most difficult
tests to evaluate and use.
 Advantage
 Tests have been used successfully to predict dysfunctional job behaviors
and identify successful candidates for overseas assignments.

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THE “BIG FIVE”
Extraversion
The tendency to be sociable, assertive, active, and to experience
positive effects, such as energy and zeal.
Emotional stability/neuroticism
The tendency to exhibit poor emotional adjustment and experience
negative effects, such as anxiety, insecurity, and hostility.
Openness to experience
The disposition to be imaginative, nonconforming, unconventional, and
autonomous.
Agreeableness
The tendency to be trusting, compliant, caring, and gentle.
Conscientiousness
Is comprised of two related facets: achievement and dependability.

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OTHER TESTS

Interest inventories
 Personal development and selection devices that compare the
person’s current interests with those of others now in various
occupations so as to determine the preferred occupation for the
individual.

Achievement tests
 Test that measure what a person has already learned—“job
knowledge” in areas like accounting, marketing, or personnel.

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OTHER TESTS (CONT’D)

Web-Based (Online) testing

 Eliminates costly and inefficient paper-and-pencil testing
processes.
 Allows for role-playing by applicants.
 Use of computer-based scoring eliminates rater bias.
 Provides immediate scoring and feedback of results to applicants.
 Can be readily customized for specific jobs.

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WORK SAMPLES

Work samples
 Actual job tasks are used in testing applicants’ performance.

Work sampling technique

 A testing method based on measuring an applicant’s performance
on actual basic job tasks.

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WORK SIMULATIONS
Management assessment center
 A simulation in which management candidates are asked to perform
realistic tasks in hypothetical situations and are scored on their
performance.

Typical simulated exercises include:

 The in-basket
 Leaderless group discussion
 Management games
 Individual presentations
 Objective tests
 The interview

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WORK SIMULATIONS
(CONT’D)
Video-Based situational testing
 A situational test comprised of several video scenarios, each
followed by a multiple choice question that requires the candidate
to choose from among several courses of action.
 While the evidence is mixed, the results suggest that video-based
situational tests can be useful for selecting employees.

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WORK SIMULATIONS
(CONT’D)
The miniature job training and evaluation
approach
 Candidates are trained to perform a sample of the job’s
tasks, and then are evaluated on their performance.
 The approach assumes that a person who demonstrates that
he or she can learn and perform the sample of tasks will be
able to learn and perform the job itself.

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BACKGROUND
INVESTIGATIONS AND
REFERENCE CHECKS
Extent of investigations and checks
 Reference checks (87%)
 Background employment checks (69%)
 Criminal records (61%)
 Driving records (56%)
 Credit checks (35%)

Reasons for investigations and checks

 To verify factual information provided by applicants.
 To uncover damaging information.

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 REFERENCE CHECKING FORM
(Verify that the applicant has provided permission before conducting
reference checks)
Candidate Name:
Reference Name: Company Name:
Dates of Employment: (From: and To:)
Position(s) Held: Salary History:
Reason for Leaving:
Explain the reason for your call and verify the above information with the supervisor (including the
reason for leaving)
1. Please describe the type of work for which the candidate was responsible.
2. How would you describe the applicant’s relationships with coworkers, subordinates (if
applicable), and with superiors?
3. Did the candidate have a positive or negative work attitude? Please elaborate
4. How would you describe the quantity and quality of output generated by the former employee?
5. What were his/her strengths on the job?
6. What were his/her weaknesses on the job?
7. What is your overall assessment of the candidate?
8. Would you recommend him/her for this position? Why or why not?
9. Would this individual be eligible for rehire? Why or why not?
Other comments?

Source: Society for Human Resource Management, © 2004.

Figure 6–7
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BACKGROUND
INVESTIGATIONS AND
REFERENCE CHECKS (CONT’D)
Sources of information for background checks:
 Former employers
 Current supervisors
 Commercial credit rating companies
 Written references

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THE POLYGRAPH AND
HONESTY TESTING
The polygraph (or lie detector)
 A device that measures physiological changes,
 The assumption is that such changes reflect changes in emotional state that
accompany lying.

Employee Polygraph Protection Act of 1988.

 Prohibits employers (in most all cases) from conducting polygraph
examinations of all job applicants and most employees.
 Also prohibited are other mechanical or electrical devices including
psychological stress evaluators and voice stress analyzers.

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PERMITTED USERS OF THE
POLYGRAPH
Employers with contracts involving:
 National defense or security
 Nuclear-power (Department of Energy)
 Access to highly classified information
 Counterintelligence (the FBI or Department of Justice)

Other exceptions
 Hiring of private security personnel
 Hiring persons with access to drugs
 Conducting ongoing investigations involving economic loss or injury to an
employer’s business.

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PAPER-AND-PENCIL
HONESTY TESTS
Paper-and-pencil honesty tests
 Psychological tests designed to predict job applicants’ proneness to
dishonesty and other forms of counterproductivity.
 Measure attitudes regarding things like tolerance of others who steal,
acceptance of rationalizations for theft, and admission of theft-related
activities.

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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.

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 GRAPHOLOGY
Graphology (handwriting analysis)
 Assumes that handwriting reflects basic personality traits.
 Graphology’s validity is highly suspect.

Handwriting Exhibit Used by Graphologist

Source: Reproduced with permission from Kathryn Sackhein, Handwriting Analysis

and the Employee Selection Process (New York: Quorum Books, 1990), p. 45.
Figure 6–8
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PHYSICAL EXAMINATION
Reasons for preemployment 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.

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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

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