Job advertisements, employment agencies, referrals, on ..

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Psychology 245

• Selection Decisions and Personnel Law
• Chapter 7

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Selection Battery Example
Assessment Center
Work Sample
r2 .25
r2 .36
Test Battery R2 .55 R alone is validity
coefficient R2 is prediction performance
r2 .10
Criterion Performance
Interview
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The Recruitment Process

• Process by which organizations attract potential
  qualified job candidates
• Job advertisements, employment agencies,
  referrals, on-campus recruitment programs,
  Internet job sites.
• But, important not to deceive the applicant.
• Realistic Job Preview (RJP)
• Providing a realistic, representative, and honest
  picture of the job to applicants from the outset.
  
• Results in a better person-organization fit.

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Selection Decisions

• Weve been talking about validity and validation
  since the first week of class, so
• Selection should be based on valid tests.
• Two general approaches to demonstrating the
  validity of a selection battery
• 1. Validation Study Employ either Predictive or
  use a Concurrent Validation Design.
• 2. Validity Generalization

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Predictive Validity

• The extent to which test scores obtained at one
  time predict criteria obtained at some future
  time
• Steps for a Predictive Validity study
• Gather predictor data on all applicants (perform
  tests).
• Hire applicants based on predictors not part of
  the selection battery.
• Gather performance data to serve as criteria for
  validation.
• Compute validity coefficient between predictor
  and criterion score.

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Concurrent Validity

• How well a test predicts a criterion that is
  measured at the same time as the test
• Often more viable than Predictive Validity
  studies
• Steps for Concurrent Validity study
• Collect data on both predictors and criteria form
  incumbent employees at same time.
• Compute validity coefficient to assess strength
  of relationship between predictor and criterion
  scores.

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Differences between the two types of studies

• Concurrent validation uses job incumbents as
  participants rather than applicants.
• In concurrent validation, both predictors and
  criteria are measured at the same time

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Cross Validation

• Validity Shrinkage phenomenon
• Known statistical fact that the validity of a
  selection battery is highest for the sample upon
  which it was validated.
• Validity decreases when used on a second sample.
• Therefore want to cross validate the selection
  battery across different samples

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Empirical cross validation

• Generate regression equation from original
  predictor and criterion data.
• Obtain predicted criterion score for second
  sample using the regression equation from first
  sample.
• Correlate predicted score with actual criterion
  score for second sample and get R2.
• Compare this R2 coefficient to the one from the
  original sample, hope for only a small amount of
  shrinkage.

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Validity Generalization

• Challenges assumption that validities are
  situation specific situational specificity
• Uses meta-analytic techniques to weigh and
  combine validity coefficients across situations
  to examine generalizability of validity
  coefficients. E.g. ACT test
• Great deal of research has supported the notion
  that validities do generalize.

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Practical Approaches to Selection

• We can tell our client that we have a selection
  battery that will result in hiring successful
  employees, but they want more than that
• Which applicants will be successful?
• A cost-effective selection battery
• Two major approaches to selection that help us
  here
• Multiple cutoffs
• Multiple regression

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Multiple Cutoff Approach

• Non-compensatory model of selection in which
  passing scores or cutoffs are set on each
  predictor
• Applicant must score higher than cutoff on EACH
  predictor
• Strength
• Does not allow candidates weak in critical areas
  of the job to be selected despite other abilities
  (e.g., surgical ability).

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Multiple Hurdle Approach

• Special case of multiple cutoff
• Predictors administered in a predetermined order
  sequence (from least to most ) so that only
  those who pass a test or hurdle move on to the
  next phase of selection.
• More cost effective as unqualified applicants
  efficiently weeded out.

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Multiple Regression

• Statistical technique that estimates how well a
  series of predictors forecasts a performance
  criterion.
• Derive a regression equation using current
  employees Y b0 b1X1 b2X2 b3X3
• Can predict criterion scores for new employees by
  plugging in predictor scores into the above
  equation.
• Rank order applicants and select from top down
  until all positions are filled.
• Employers might consider setting a criterion cut
  off no matter how many positions are available,
  no applicants will be selected if they fall below
  the cut off point.

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Personnel decision-making

• The answer to Is it worth it? often comes
  directly from an assessment of utility.
• Factors determining the quality of newly selected
  employees
• 1. Decision Accuracy
• 2. Validity of predidctor
• 3. Base rate
• 4. Selection ratio

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Decision Accuracy
A true positives/hits org correctly decided to
hire these people. B true negatives/org
correctly rejected these people. C false
negative/misses those who failed predictor test
but who would have been successes. D false
positive/false alarm those who passed the test,
but failed on the job.
Misses
Success
Hits
A
C
Criterion cutoff
D
Correct Rejections
B
False Alarms
Fail
Reject
Accept
Predictor cutoff Predictor battery
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Validity

• To the extent that a selection battery is valid,
  hits and correct rejections will be maximized
  while misses and false alarms will be minimized.
• With larger validity coefficients, predictors do
  a better job forecasting subsequent performance.

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Base Rate

• Percentage of current employees who are
  successful on the job.
• Reflects the quality of previous selection
  batteries and provides a basis of comparison for
  new battery.
• Usually the organization sets this cutoff such as
  when a school uses a 2.0 GPA.

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Selection Ratio (SR)

• SR The hiring rate percentage. A comparison of
  of openings you have with of available
  applicants.
• i.e., SR n/N. n job openings, N of
  applicants.
• Which ratio has more utility for selection 11
  or 110?

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Legal Issues in I/O Psychology

• Civil Rights Act of 1964 (Title VII)
• It is unlawful for employers to fail to hire or
  discriminate against any individual on the basis
  of race, color, religion, sex, or national
  origin.
• Created the EEOC (Equal Employment Opportunity
  Commission).
• Which published the Guidelines for legal
  employee selection.

Sexual ori not prot
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Employment At-Will

• Employers have the right to initiate and
  terminate the employment relationship at any
  time, for any or no reason at all
• However, due to recent employment cases about
  wrongful discharge many companies have
  incorporated just cause discharge policies
• Just Cause firing someone for acceptable reasons.

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Adverse Impact

• Very important concept with regard to
  understanding employment law.
• Occurs when members of a protected group (women,
  minorities) are unfairly treated by an employers
  personnel action.
• Operationalized by the four-fifths rule
• Adverse impact exists when the selection rate for
  a protected group is less than 4/5 or 80 of the
  selection rate for the group with the highest
  hiring rate.
• Not necessarily implicative of legality

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Presence Absence of Adverse Impact
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Steps in a Discrimination Case

• Plaintiff demonstrates a prima facie case (on
  the face of it) the numbers indicate adverse
  impact.
• Defendant can argue against statistics by showing
  the plaintiff is looking only at partial data,
  interpreting it incorrectly, or looking at the
  wrong data OR
• If Adverse Impact does exist, defendant has some
  options to combat the charge of illegal
  discrimination.

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Combating a charge of Illegal Discrimination

• Job-relatedness of selection battery
• Employer can justify use of predictors that
  demonstrate adverse impact by establishing their
  validity , i.e., that predictors are tapping
  KSAOs shown to be important for job success.
• --gt I cant help it if adverse impact exists
• Business necessity or Bona fide occupational
  qualification (BFOQ)
• Employer can argue that employees of a certain
  gender or race are a business necessity, i.e.,
  business cannot be conducted without them.
• Hooters cannot function as a business without
  females. Women are a BFOQ.

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Affirmative Action

• Practice designed to increase of protected
  group members in jobs.
• Appropriately implemented AA programs hire a
  qualified minority member over an equally
  qualified individual from the majority group.
• Unlawful for employer to adjust the scores of,
  use different cutoff scores for, or otherwise
  alter the results of employment-related tests on
  the basis of race, color, religion, sex, or
  national origin.
• Quota systems are illegal

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Griggs v. Duke Power (1971)

• A case of disparate impact
• Minority group member was discriminated against
  by employment procedures that were unintentional.
• Adverse impact can exist regardless of intent.
• Duke Power lost to plaintiff Griggs because it
  had not validated its employment test. In other
  words
• It is illegal to hire only Caucasians even if
  they score better on the selection battery if the
  selection battery has not been demonstrated to
  predict job performance.
• Burden of proof is on employers to show test is
  valid.

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Sexual Harassment

• Also prohibited by Civil Rights Act.
• Two forms of sexual harassment
• Quid pro quo harassment
• You do this, I do that
• Situation in which advancement or continuation in
  a company is contingent on sexual favors.
• Hostile work environment harassment
• Verbal or physical behavior that creates an
  intimidating, hostile, or offensive work
  environment, or an environment that interferes
  with ones job performance.

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Age Discrimination in Employment Act (ADEA)
Cant use psychological fact that on average
older people have lower perceptive ability. Must
be individually-based

• Unlawful to discriminate against individuals who
  are 40 or above.
• Illegal also to indicate age preferences in job
  ads.
• Unless age is a BFOQ (bonafide occupational
  qual.)
• 1986 amendment to ADEA
• Illegal for companies to impose mandatory
  retirement policies regardless of age.
• Exceptions were made for police, fire personnel,
  and federal employees associated with law
  enforcement and air traffic control.
• No longer allowed under federal law

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Americans with Disabilities Act (ADA)

• Prohibits discrimination against qualified
  individuals with disabilities in employment
  decisions
• Disability defined as
• Having a physical or mental impairment that
  substantially limits one or more life functions.
• Having a record of such an impairment.
• Regarded as having such an impairment.

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ADA continued

• Qualified Individuals
• Can perform the Essential Function of the job.
• Essential Functions tasks that are significant
  and meaningful to the job.
• Employers must make reasonable accomodations for
  such individuals
• reasonable accomodations changes in job function
  that allow qualified, disabled individuals to
  successfully perform job.

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ADA continued

• Undue hardship
• Employers are required only to make reasonable
  accommodations to the extent that such
  accommodations do not impose an undue hardship
  because of difficulty of implementation or
  expense.
• Job Analyses very important to define Essential
  Functions of jobs andDetermine what kind of
  Reasonable Accommodations can be made.

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Family and Medical Leave Act

• FMLA (Clinton)
• Allows eligible employees to take up to 12 weeks
  of job-protected, unpaid leave for family or
  medical reasons.
• Created to help employees balance work pressures
  with family pressures.
• Employee has right to return to same position or
  equivalent position with same pay/benefits.