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Chapter Seven
Measurement and Decision-Making
Issues in Selection
Copyright © Houghton Mifflin Company. All rights reserved. 7–2
Chapter Outline
• Statistical Methods in Selection• Reliability• Validity• Decision Making in Selection• Utility of a Selection System
Copyright © Houghton Mifflin Company. All rights reserved. 7–3
The Selection Process
• Measurement– Ensuring that selection tests are reliable
and valid• Decision making
– Combining information about a person to make hiring decision
• Evaluation– Making sure hiring decisions increase firm
efficiency and profitability
Copyright © Houghton Mifflin Company. All rights reserved. 7–4
Statistical Methods in Selection
• Correlation Analysis– Degree of linear relationship between
variables– Commonly measured by the Pearson
product moment correlation coefficient• Regression Analysis
– Best fitting line equation
Copyright © Houghton Mifflin Company. All rights reserved. 7–5
Reliability
• Consistency of measurement• Systematic Error versus Random Error• Methods of Measuring Reliability
– Test-Retest– Interrater Reliability– Internal Consistency
Copyright © Houghton Mifflin Company. All rights reserved. 7–6
Validity
• Content Validity– Are items a representative sample– Based on job analysis– Determined by judgment of job experts– Lawshe method
Copyright © Houghton Mifflin Company. All rights reserved. 7–7
Validity (cont’d)
• Criterion-Related Validity – does a selection test adequately predict an outcome– Concurrent Validation
• Current employees• Predictor and criterion measured at same time• Problem = respresentativeness of sample• Problem = restriction of range
Copyright © Houghton Mifflin Company. All rights reserved. 7–8
Validity (cont’d)
• Predictive Validation– Job applicants– Predictor measured (time 1)– Applicants hired without predictor influence– Criterion measured (time 2)– Problem = sample size needed– Problem = time between T1 and T2
Copyright © Houghton Mifflin Company. All rights reserved. 7–9
Special Concerns in Validity
• Test Fairness– Mean differences in test scores– Equitable treatment– Differential prediction– Differential validity
• Validity Generalization
Copyright © Houghton Mifflin Company. All rights reserved. 7–10
Decision Making in Selection
• Additive Models– Higher score = better score– Compensatory model
• Multiple Cutoff– Minimum score for each test– Non-compensatory model
• Multiple Hurdle– Sequential testing– Minimum score for each test– Non-compensatory model
Copyright © Houghton Mifflin Company. All rights reserved. 7–11
Decision Making (cont’d)
• Profile Matching– Ideal pattern of scores
• Adjusting Test Scores of Minority Group Members– In most cases illegal– Fixed bands– Sliding bands
Copyright © Houghton Mifflin Company. All rights reserved. 7–12
Utility of a Selection System
• Efficiency of Selection• Types of selection decisions
– Quadrant A: True-Positive Decisions– Quadrant B: False-Negative Decisions– Quadrant C: True-Negative Decisions– Quadrant D: False-Positive Decisions
Copyright © Houghton Mifflin Company. All rights reserved. 7–13
Utility (cont’d)
• Selection Efficiency Is Affected By:– Validity– Selection Ratio– Base Rate of Success
• Taylor-Russell Tables– Standard Deviation of Performance in
Dollars– Costs Associated with Selection
Copyright © Houghton Mifflin Company. All rights reserved. 7–14
Review
• Statistical Methods in Selection• Reliability• Validity• Decision Making in Selection• Utility of a Selection System