CHAPTER 5: EMPLOYEE SELECTION: REFERENCES & TESTING average or poor.

Keep in mind that applicants choose their own

references.
Predicting Performance Using References & Letters of Recommendation ❖ Knowledge of the Applicant: A second problem with letter of
recommendation is that the person writing the letter often does not
● Reference Check: Is the process of confirming the accuracy of know the applicant well, has not observed all aspects of an
information provided by an applicant. applicant’s behavior, or both.
● A relatively recent trend in reference checking is for employers to ❖ Reliability: The third problem with references and letters of
“Google” an applicant’s name to find more information about the recommendation involves the lack of agreement between two
applicant. people who provide references for the same person.
● A Reference is the expression of an opinion, either orally or through ❖ Extraneous Factors: Mehrabian (1965) and Weins, Jackson,
written checklist, regarding an applicant’s ability, previous performance, Manaugh, and Matarazzo (1969) found that even though most
work habits, character, or potential for future success. letters of recommendation are positive, letters written by
● A Letter of Recommendation is a letter expressing an opinion regarding references who lie applicants are longer than those written by
an applicant’s ability, previous performance, work habits, character, or references who do not.
potential for future success. ● Three ethical guidelines that reference providers should follow:
● Resume Fraud is lying on their resumes bout what experience or ❖ First, explicitly state your relationship with the person you are
education they actually have. recommending.
❖ Second, be honest in providing details.
Reasons For Using References & Recommendations
❖ Finally, let the applicant see your references before sending it, and
● Confirming Details on a Resume: give him the chance to decline to use it.
❖ Resume Fraud is lying on their resumes about what experience or
Predicting Performance Using Applicant’s Knowledge and Skill
education they actually have.
● Checking for Discipline Problems: 1. Applicant Knowledge: Used primarily in the in the public sector,
❖ Negligent hiring, if an organization hires an applicant without especially for promotions. Job Knowledge Tests are designed to measure
checking his references and background and he later commits a how much person knows about the job.
crime while in the employ of the organization, the organization 2. Applicant Ability: Used primarily for occupations in which applicants are
may be found liable for negligent hiring if the employee has a not expected to know how to perform the job at the time of hire. Instead,
criminal background that would have been detected had a new employees will be taught the necessary job skills and knowledge.
background check been conducted.
❖ Negligent reference, if former employee does not provide relevant Predicting Performance Using Applicant Ability
information to an organization that request it.
● Predicting Future Performances: Low validity is largely due to Four A. Cognitive Ability Test: includes such dimensions as oral and written
Main Problems with References and Letters of Recommendations: comprehension, oral, and written expression, numerical facility, originality,
❖ Leniency: Research is clear that most letters of recommendations memorization, reasoning (mathematical, deductive, inductive), and general
are positive: less than 1% of references rate applicants below learning.
 B. Perceptual Ability Test: consists of vision (near, far, night, peripheral), Predicting Performance Using Prior Experience
color discrimination, depth perception, glare sensitivity, speech (clarity,
recognition), and hearing (sensitivity, auditory attention, sound 4. Prior Experience: Applicant experience is typically measured in one of four
localization). ways: experience ratings of applicants, biodata, reference checks, and
C. Psychomotor Ability Test: includes finger dexterity, manual dexterity, interviews.
control precision, multi-limb coordination, response control, reaction time,
arm-hand steadiness, wrist-finger speed, speed-of-limb movement. A. Experience Ratings: the idea that past experience will predict future
D. Physical Ability Test: are often used for jobs that require physical experience.
strength and stamina, such as police officer, fire-fighter, and lifeguard. B. Biodata: is a selection method that considers an applicant’s life, school,
Physical ability is measured in one of two ways: Job simulations and military, community, and work experience.
Physical Agility Tests. C. Reference checks
D. Interview
Predicting Performance Using Applicant Skill
Predicting Performance Using Personality, Interest, & Character
3. Applicant Skill: measure the extent to which an applicant already has a
job-related skill. 5. Personality, Interest, and Character:

❖ Work Sample, the applicant performs actual job-related tasks. A. Personality Inventories: are becoming increasing popular as an employee
❖ Assessment Center is a selection technique characterized by the use of selection method, in part because they predict performance better than was
multiple assessment methods that allow multiple assessors to actually once thought, and in part because they result in less adverse impact than
observe applicants perform simulated job tasks. do ability tests.
B. Interest Inventories: are designed to tap vocational interest. The most
Development and Component: commonly used interest inventory is the Strong Interest Inventory (SII),
which asks individuals to indicate whether they like or dislike 325 items
The in-basket technique: is designed to simulate the types of daily information such as bargaining, repairing electrical wiring, and taking responsibility.
that appear on a manager’s or employee desk. C. Integrity Tests: (also called Honesty tests) tell an employer the
probability that an applicant would steal money or merchandise.
● Simulation exercises: are the real backbone of the assessment center D. Conditional Reasoning Tests: were initially developed by James (1998)
because they enable assessors to see an applicant “in action.” to reduce inaccurate responses and get a more accurate picture of a
● Work samples: usually, when a simulation does not involve a situational person’s tendency to engage in aggressive or counterproductive behavior.
exercise, it is called a work sample. E. Graphology: the idea behind handwriting analysis is that the way people
● Leaderless Group Discussions: in this exercise, applicants meet in small write reveals their personality, which in turn should indicate work
groups and are given a job-related problem to solve a job-related issue to performance.
discuss.
● Business Games: are exercises that allow the applicant to demonstrate
such attributes as creativity, decision-making, and ability to work with
others.
Predicting Performance Limitations Due to Medical & Psychological susceptible to such random daily conditions as illness, fatigue, stress, or
Problems uncomfortable testing conditions.
• Alternate-Forms Reliability: two forms of the same test are constructed. This
1. Drug Testing: certainly is one of the most controversial testing methods counterbalancing of test-taking order is designed to eliminate any effects that
used by HR professionals. HR professionals believe not only that illegal taking one form of the test first may have on scores on the second form. If they are
drug use is dangerous but also many employees are under the influence of similar, the test is said to have form stability.
drugs at work. • Scorer Reliability: Scorer reliability is discussed in terms of interrater reliability.
2. Psychological Exams: usually consists of an interview by a clinical That is, will two interviewers give an applicant similar ratings, or will two
psychologist, an examination of the applicant’s life history, and the supervisors give an employee similar performance ratings?
administration of one or more of the psychological tests. • Internal Reliability: looks at the consistency with which an applicant responds
3. Medical Exams: in these exams, the physician is given a copy of the job to items measuring a similar dimension or construct (e.g., personality trait, ability,
and asked to determine if there are any medical conditions that will keep area of knowledge). The extent to which similar items are answered in similar
the employee from safely performing the job. ways is referred to have internal consistency and measure item stability.

Once a decision has been made regarding which applicant will be hired, those who • Another factor that can affect the internal reliability of a test is item homogeneity.
will not be hired must be notified. Rejected applicants should be treated well That is, do all of the items measure the same thing, or do they measure different
because they are potential customers and potential applicants for other positions constructs? The more homogenous the items, the higher the internal consistency.
that might become available in the organization.
Methods used to determine internal consistency
CHAPTER 6: EVALUATING SELECTION TECHNIQUE AND DECISION
A. Split-half method: is the easiest to use, as items on a test are split into two
groups. Usually, all of the odd-numbered items are in one group and all the
CHARACTERISTICS OF EFFECTIVE SELECTION TECHNIQUE
even-numbered items are in the other group. Because the number of items in the
test has been reduced, researchers have to use a formula called Spearman-Brown
Effective Selection Techniques have Five Characteristics. They are:
prophecy to adjust the correlation.
• Reliable
B. Cronbach’s coefficient alpha: can be used not only for dichotomous items but
• Valid
also for tests containing interval and ratio items such as five-point rating scales.
• Cost efficient
C. Kuder-Richardson formula 20 (KR20): is used for tests containing
• Fair
dichotomous items (e.g., yes/no, true/false)
• Legally defensible
• Validity: is the degree to which inferences from scores on tests or assessments
are justified by the evidence.
• Reliability: is the extent to which a score from a selection measure is stable and
• Content validity: the extent to which test items sample the content that they are
free from error.
supposed to measure.
• Test-retest reliability: each one of several people takes the same test twice. The
• Criterion validity: which refers to the extent to which a test score is related to
scores from the first administration of the test are correlated with scores from the
some measure of job performance called a criterion.
second to determine whether they are similar. If they are similar, the test is said to
have temporal stability. The test scores are stable across time and not highly
 - With a concurrent validity design, a test is given to a group of employees The philosophy behind the Taylor-Russell Table is that a test will be useful to an
who are already on the job. The scores on the test are then correlated with organization if:
a measure of the employee’s current performance. 1. The test is valid.
- With predictive validity design, the test is administered to a group of job 2. The organization can be selective in its hiring because it has more
applicants who are going to be hired. The test scores are then compared applicants than openings.
with a future measure of job performance. 3. There are plenty of current employees who are not performing well, thus there is
• Validity generalization or VG: the extent to which a test found valid for a job in a room for improvement.
one location is valid for the same job in a different location.
• Construct validity: is the most theoretical of the validity types. Basically, it is To use the Taylor-Russell Table, three pieces of information must be obtained:
defined as the extent to which a test actually measures the construct that it purports • The first information needed is the test’s criterion validity coefficient. The best
to measure. Construct validity is concerned with inferences about test scores. would be to actually conduct a criterion validity study with test scores correlated
• Known-group validity: this method is not common and should be used only with some measures of job performance.
when other methods for measuring construct validity are not practical. • The second piece of information that must be obtained is the selection ratio
• Face validity: is the extent to which a test appears to be job related. which is simply the percentage of people an organization must hire.
• Barnum Statements (Dickson & Kelly, 1985) are statements so general that they
can be true of almost everyone. The ratio is determined by the following formula:
Selection ratio = number hired/number of applicants
FINDING RELIABILITY & VALIDITY INFORMATION The lower the selection ratio, the greater the potential usefulness of the test.

COST – EFFICIENCY • The final piece of information needed is the base rate of current
• If two or more tests have similar validities, then cost should be considered. For performance---the percentage of employees currently on the job who are
example, in selecting police officers, it is common to use a test of cognitive ability considered successful. This figure is usually obtained in one of two ways. The first
such as the Wonderlic Personnel Test or the Wechsler Adult Intelligence Scale. method is the most simple but the least accurate. Employees are split into two
Both tests have similar reliabilities and validities, yet the Wonderlic cost only a equal groups based on their scores on some criterion such as tenure or
few dollars per applicant and can be administered to groups of people in only 12 performance. The base rate using this method is always .50 because one-half of the
minutes. employees are considered satisfactory.
ESTABLISHING THE USEFULNESS OF A SELECTION DEVICE • The second and more meaningful method is to choose a criterion measure score
• Even when a test is both reliable and valid, it is not necessarily useful. To above which all employees are considered successful.
determine how useful a test would be in any given situation, several formulas and
tables have been designed. Each formula and table provides slightly different LAWSHE TABLES
information to an employer. A series of tables that use the base rate, test validity, and applicant percentile on a
TAYLOR – RUSSELL TABLES test to determine the probability of future success for that applicant.
• A series of tables based on the selection ratio, base rate, and test validity that To use these tables, three pieces of information are needed:
yield information about the percentage of future employees who will be successful 1. The validity coefficient
if a particular test is used. 2. The base rate
3. The applicant’s test score
BROGDEN-CRONBACH-GLESER UTILITY FORMULA MEASUREMENT BIAS

Another way to determine the value of a test in a given situation is by computing • Refers to group differences in test scores that are unrelated to the construct being
the amount of money an organization would save if it used the test to select measured.
employees. Fortunately, I/O Psychologists have devised a fairly simple Utility • It also refers to technical aspects of a test.
Formula---(A method of ascertaining the extent to which an organization will • A test is considered to have measurement bias if there are group differences (e.g.,
benefit from the use of a particular selection system). sex, race, age,) in test scores that are unrelated to the construct being measured.
• The statistical methods for determining measurement bias can be very
To estimate the monetary savings to an organization. To use this formula, five complicated and are certainly beyond the scope of this text. However, from a legal
items of information must be known. perspective, if differences in test scores result in one group (e.g., men) being
1. Number of employees hired per year (n). This number is easy to determine: It selected at a significantly higher rate than another (e.g., women), Adverse Impact
is simply the number of employees who are hired for a given position in a year. – (An employment practice that results in members of a protected class being
2. Average tenure (t). This is the average amount of time that employees in the negatively affected at a higher rate than members of the majority class.) is
position tend to stay with the company. The number is computed by using said to have occurred and the burden is on the organization using the test to prove
information from company records to identify the time that each employee in that that the test is valid.
position stayed with the company. The number of years of tenure for each
employee is then summed and divided by the total number of employees. PREDICTIVE BIAS
3. Test validity (r). This figure is the criterion validity coefficient that was • Refers to situations in which the predicted level of job success falsely favors one
obtained through either a validity study or validity generalization. group (e.g., men) over another (e.g., women).
4. Standard deviation of performance in dollars (Sdy). • That is, a test would have predictive bias if men scored higher on the test than
5. Mean standardized predictor score of selected applicants (m). This number women but the job performance of women was equal to or better than that of men.
is obtained in one of two ways: The first method is to obtain the average score on
the selection test for both the applicants who are hired and the applicants who are MAKING THE HIRING DECISION
not hired. The average test score of the non-hired applicants is subtracted from the • After valid and fair selection tests have been administered to a group of
average test score of the hired applicants. This difference is divided by the standard applicants, a final decision must be made as to which applicant or applicants to
deviation of all the test scores. hire. At first, this may seem to be an easy decision---hire the applicants with the
highest test scores. But the decision becomes more complicated as both the number
DETERMINING THE FAIRNESS OF A TEST and variety of tests increase.
• Once a test has been determined to be reliable and valid and to have utility for an
organization, the next step is to ensure that the test is fair and unbiased. Although UNADJUSTED TOP-DOWN SELECTION
there is disagreement among I/O Psychologists regarding the definition of test • With top-down selection, applicants are rank-ordered on the basis of their test
fairness, most professionals agree that one must consider potential race, gender, scores. Selection is then made by starting with the highest score and moving down
disability, and other cultural differences in both the content of the test until all openings have been filled. The advantage to top-down selection is that by
(measurement biased) and the way in which scores from the test predict job hiring the top scorers on a valid test, an organization will gain the most utility. The
performance (predictive bias). disadvantage is that this approach can result in high levels of adverse impact and it
reduces an organization’s flexibility to use non-test factors such as references or BANDING
organizational fit. • As mentioned previously, a problem with top-down hiring is that the process
results in the highest levels of adverse impact. On the other hand, use of passing
RULE OF THREE scores decreases adverse impact but reduces utility. As a compromise between top-
• A variation on top-down selection in which the names of the top three scorers are down hiring and passing scores, Banding (a statistical technique based on the
given to the person making the hiring decision. standard error of measurement that allows similar test scores to be grouped)
• This person can then choose any of the three based on the immediate needs of the attempts to hire the top test scorers while still allowing some flexibility for
employer. affirmative action.
• This method ensures that the person hired will be well qualified but provides • Banding takes into consideration the degree of error associated with any test
more choice than does top-down selection. scores. Thus, even though one applicant might score two points higher than
another, the two-point difference might be the result of chance (error) rather than
PASSING SCORES actual differences in ability.
• The minimum test score an applicant must achieve to be considered for hire.
• Passing scores are a means for reducing adverse impact and increasing flexibility. CHAPTER 7: EVALUATING EMPLOYEE PERFORMANCE
• With this system, an organization determines the lowest score on a test that is
associated with acceptable performance on the job. PERFORMANCE APPRAISAL PROCESS
• If there is more than one test for which we have passing scores, a decision must
be made regarding the use of a multiple-cutoff approach (a selection strategy in Step 1: Determine the Reason for Evaluating Employee Performance
which applicants must meet or exceed the passing score on more than one • The first step in the performance appraisal process is to determine the reasons
selection test) or a multiple hurdle approach. Both approaches are used when your organization wants to evaluate employee performance. That is, does the
one score can’t compensate for another or when the relationship between the organization want to use the results to improve performance? Give raises on the
selection test and performance is not linear. With a multiple-cutoff approach, the basis of performance? This determination is important because the various
applicants would be administered all of the tests at one time. If they failed any of performance appraisal techniques are appropriate for some purposes but not for
the tests, they would not be considered further from employment. others.
• One problem with a multiple-cutoff approach is the cost. If an applicant passes • For example, a performance appraisal method, the (Forced- Choice Rating
only three out of four tests, he will not be hired, but the organization has paid for Scale – A method of performance appraisal in which a supervisor is given
the applicant to take all four tests. several behaviors and is forced to choose which of them is most typical of the
• To reduce the cost associated with applicants failing one or more tests, employee.) is excellent for determining compensation but terrible for training
multiple-hurdle approach (a selection practice of administering one test at a purposes.
time so that applicants must pass the test before being allowed to take the next • Though there are many uses and goals for performance appraisal, the most
test) are often used. common include providing employee feedback and training, determining salary
• With a multiple-hurdle approach, the applicant is administered one test at a time, increases, making promotion decisions, making termination decisions, and
usually beginning with the least expensive. conducting personnel research.
• Applicants who fail a test are eliminated from further consideration and take no
more tests. Applicants who pass all of the tests are then administered the linearly
related tests; the applicants with the top scores on these tests are hired.
PROVIDING EMPLOYEE TRAINING AND FEEDBACK MAKING TERMINATION DECISIONS
• By far, the most important use of performance evaluation is to improve employee • Unfortunately, providing feedback, counseling, and training to employees does
performance by providing feedback about what employees are doing right and not always increase performance or reduce discipline problems. When
wrong. Even though employee training should be an ongoing process, the performance management techniques are not successful, the results of a
semi-annual Performance Appraisal Review – (A meeting between a performance review might suggest that the best course of action is to terminate the
supervisor and a subordinate for the purpose of discussing performance employee.
appraisal results.) is an excellent time to meet with employees to discuss their
strengths and weaknesses. But most important, it is the time to determine how CONDUCTING PERSONNEL RESEARCH
weaknesses can be corrected. • A final reason for evaluating employees is for personnel research. As discussed
in previous chapters, employment tests must be validated, and one way this can be
DETERMINING SALARY INCREASES done is by correlating test scores with some measure of job performance. To do
• As mentioned in Chapter 2, a job’s worth is determined by many factors, this, however, an accurate and reliable measure of job performance must be
including the degree of responsibility and level of education required to perform available.
the job. But the difference in compensation between two individuals within the
same job is a function of both tenure and job performance. That is, it would not Step 2: Identify Environmental & Cultural Limitations
seem fair to pay a poor-performing employee the same amount as an excellently • The second step in the performance appraisal process is to identify the
performing one. environmental and cultural factors that could affect the system. For example, if
• Thus, one important reason for evaluating employee performance is to provide a supervisors are highly overworked, an elaborate, time-consuming performance
fair basis on which to determine an employee’s salary increase. If performance appraisal system will not be successful. In an environment in which there is no
appraisal results are to be used to determine salary increases, a numerical rather money available for merit pay, developing a numerically complex system will
than narrative format is probably needed. become frustrating, and the results of the evaluation may not be taken seriously. In
an environment in which employees are very cohesive, the use of peer ratings
MAKING PROMOTION DECISIONS might reduce the cohesiveness.
• Another reason for evaluating performance is to determine which employees will
be promoted. Although it would seem only fair to promote the best employee, this Step 3: Determine Who Will Evaluate Performance
often does not occur. For example, the policy in some organizations is to promote • Supervisors: see the results of an employee’s efforts
employees with the most seniority. This is especially true of organizations whose • Peers: often see the actual behavior
employees belong to unions. •Subordinate feedback (also called upward feedback): is an important
• Even though promoting employees on the basis of performance or tenure seems component of 360-degree feedback, as subordinates can provide a very different
fair, it may not always be smart. The best employee at one level is not always the view about a supervisor’s behavior.
best at the next level. Promoting the best or most senior employee often results in • Customers
the so-called Peter Principle – the promotion of employees until they reach their • Self-appraisal
highest level of incompetence. If performance evaluations are used to promote
employees, care should be taken to ensure that the employee is evaluated well on Step 4: Select The Best Appraisal Methods to Accomplish Your Goals
the job dimensions that are similar to those of the new position. Decision 1: Focus of the Appraisal Dimensions
• Trait-Focused Performance Dimension: concentrates on such employee ➔ Quantity of Work: Evaluation of a worker’s performance in terms of
attributes as dependability, honesty, and courtesy. quantity is obtained by simply counting the number of relevant job
• Competency-Focused Performance Dimension: rather than concentrating on behaviors that take place. Quality of Work is usually measured in terms of
an employee’s traits, competency-focused dimensions concentrate on the errors, which are defined as deviations from a standard.
employee’s knowledge, skills, and abilities. ➔ Attendance: can be separated into three distinct criteria: absenteeism,
• Task-Focused Performance Dimensions: are organized by the similarity of tardiness, and tenure.
tasks that are performed. ➔ Safety: Employees who follow safety rules and who have no occupational
• Goal-Focused Performance Dimensions: is to organize the appraisal on the accidents do not cost an organization as much money as those who break
basis of goals to be accomplished by the employee. rules, equipment, and possibly their own bodies.
• Contextual Performance: the effort an employee makes to get along with peers, • Ratings of Performance: The most commonly used option in evaluating
improve the organization, and perform tasks that are needed but are not necessarily performance is to have supervisors rate how well the employee performed on each
an official part of the employee’s job description. dimension. Though there are many variations of how these rating scales can be
created, the two most common are the graphic rating scale and the behavioral
Decision 2: Should Dimensions Be Weighted? checklist.
• Weighting dimensions makes good philosophical sense, as some dimensions
might be more important to an organization than others. Graphic Rating Scale
• Though differential weighting of dimensions makes sense and has some A method of performance appraisal that involves rating employee performance on
advantages, many organizations choose to weigh all performance dimensions an interval or ratio scale. An example is shown in Table 7.5 . As you can see, such
equally because it is administratively easier to compute and to explain to scales are fairly simple, with 5 to 10 dimensions accompanied by words such as
employees. excellent and poor anchoring the ends of the scale.

Decision 3: Use of Employee Comparisons, Objective Measures, or Ratings

• Employee Comparisons: To reduce leniency, employees can be compared with
one another instead of being rated individually on a scale.
➔ Rank Order: In this approach, employees are ranked in order by their
judged performance for each relevant dimension.
➔ Paired Comparisons: can be used. This method involves comparing each
possible pair of employees and choosing which one of each pair is the
better employee.
➔ Forced Distribution: With this method, a predetermined percentage of
employees are placed in each of the five categories, the bottom-performing
10% of the employees are fired.
• Objective Measures: A second way to evaluate performance is to use what are
commonly called objective, or hard criteria. Common types of objective measures
include quantity of work, quality of work, attendance, and safety.
Behavioral Checklists Extent to Which Organizational Expectations Are Met:
As shown in Figure 7.6, behavioral checklists consist of a list of behaviors, Perhaps the best approach is to rate employees on the extent to which their
expectations, or results for each dimension. This list is used to force the supervisor behavior meets the expectations of the organization. Such an approach allows for
to concentrate on the relevant behaviors that fall under a dimension. Behavioral high levels of feedback and can be applied to most types of employee behavior.
checklists are constructed by taking the task statements from a detailed job Some behaviors, however, are not suitable for such a scale.
description and converting them into behavioral performance statements
representing the level at which the behavior is expected to be performed. Step 5: Train Raters
• Raters who receive frame-of-reference training make fewer rating errors and
recall more training information than do untrained raters or raters receiving
information about only job-related behaviors.

Step 6: Observe & Document Performance

• Supervisors observe employee behavior and document critical incidents as they
occur. Critical incidents are examples of excellent and poor employee
performance.

Supervisors Tend to Remember the Following:

• First impressions
• Recent behaviors
• Unusual or extreme behaviors
Comparison with Other Employees • Behavior consistent with the supervisor’s opinion
Supervisors can rate performance on a dimension by comparing the employee’s
level of performance with that of other employees. It is important to note that when Step 7: Evaluate Performance
such scale anchors as “below average,” “average,” and “above average” are used, OBTAINING AND REVIEWING OBJECTIVE DATA
the evaluation involves rating employee performance in comparison with other When it comes to appraise the employee’s performance, a supervisor should first
employees. Though this approach will reduce such problems as overly lenient or obtain and review the objective data relevant to the employee’s behavior. For
overly strict ratings, it potentially forces a supervisor to rate employees who are example, a police sergeant might review the number of tickets an officer wrote,
performing well as being worse than other employees. arrests made, and citizen complaints received. A production supervisor might
review the number of days an employee was absent, number of units produced, and
Frequency of Desired Behaviors the tons of materials wasted. These data, when combined with critical-incident
Behaviors can be rated based on the frequency with which they occur. For logs, provide a solid basis on which to rate an employee.
example, we expect our production workers to follow safety guidelines. As part of
our performance appraisal system, supervisors are asked to decide whether their READING CRITICAL-INCIDENT LOGS
employees “always,” “almost always,” “often,” “seldom,” or “never” follow the After obtaining objective data, the supervisor should go back and read all of the
rules. As you can imagine, it is often difficult for a supervisor to distinguish critical incidents written for an employee. Reading these incidents should reduce
between levels such as “almost always” and “often.” errors of primacy, recency, and attention to unusual information.
COMPLETING THE RATING FORM Step 8: Communicate Appraisal Results to Employees
Once critical-incident logs have been read and objective data reviewed, the • Prior To The Interview:
supervisor is ready to assign performance appraisal ratings. While making these ➔ Allocating Time: Both the supervisor and the employee must have time to
ratings, the supervisor must be careful not to make common rating errors involving prepare for the review interview.
distribution, halo, proximity, and contrast. ➔ Scheduling The Interview: The interview location should be in a neutral
place that ensures privacy and allows the supervisor and the employee to
• Distribution Errors: are made when a rater uses only one part of a rating scale. face one another without a desk between them as a communication barrier.
➔ Leniency Error: raters tend to rate every employee at the upper end of the ➔ Preparing For The Interview: While preparing for the interview, the
scale regardless of the actual performance of the employee. supervisor should review the ratings she has assigned to the employee and
➔ Central Tendency Error: results in a supervisor rating every employee in the reasons for those ratings.
the middle of the scale. • During The Interview:
➔ Strictness Error: rates every employee at the low end of the scale. • Because employees and supervisors are often anxious about performance
• Halo Errors: occurs when a rater allows either a single attribute or an overall reviews, it is a good idea to begin the interview with some small talk until the
impression of an individual to affect the ratings that she makes on each relevant jitters go away. Once the employee and supervisor are feeling as comfortable as
job dimension. they are going to get, the supervisor should communicate the following:
• Proximity Errors: occurs when a rating made on one dimension affects the 1. the role of performance appraisal
rating made on the dimension that immediately follows it on the rating scale. 2. how the performance appraisal was conducted
• Contrast Errors: the performance rating one person receives can be influenced 3. how the evaluation process was accomplished
by the performance of a previous evaluated person. 4. the expectation that the appraisal interview will be interactive
• Low Reliability Across Raters: two people rating the same employee seldom 5. the goal of understanding and improving performance
agree with each other. • Fundamental attribution error, to attribute others’ failure or poor performance
• Sampling Problems: to personal rather than situational factors.
➔ Recency Effect: recent behaviors are given more weight in the
performance evaluation than behaviors that occurred during the first few Step 9: Terminate Employees
months of the evaluation period. • Employment-at-will Doctrine: in most states allows employers freedom to fire
➔ Infrequent Observation: many managers or supervisors do not have the an employee without a reason-----at will. In the public sector, an employee can be
opportunity to observe a representative sample of employee behavior. fired only for cause.
• Cognitive Processing of Observed Behavior: • Some Limitations To Employment-At-Will Doctrine:
➔ Observation of Behavior: just because an employee’s behavior is • State Law: There are laws that an employee can be fired only for cause.
observed does not guarantee that it will be properly remembered or • Provisions of Federal or State law: Employees cannot be fired for reasons
recalled during the performance appraisal review. protected by Federal or State law.
➔ Emotional State: The amount of stress under which a supervisor operates • Public Policy/Interest: Employers cannot terminate an employee for exercising
also affects her performance ratings. a legal duty such as jury duty or refusing to violate the law of professional ethics.
➔ Bias: Raters who like the employees being rated may be more lenient. • Contract: If an individual employee has a signed employment contract
stipulating a particular period of employment, an organization cannot fire the
employee without cause.
• Implied Contracts: Employment-at-will is nullified if an employer implies that the facts-----she gave the employee every chance to improve, but the employee
an employee “has a job for life” or can be fired only for certain reasons. chose not to.
• Covenants of Good Faith and Fair Dealing: Though employers are generally
free to hire and fire at will, the courts have ruled that employers must still act in Step 10: Monitor The Legality & Fairness of The Appraisal System
good faith and deal fairly with an employee. Performance appraisal systems are subject to the same legal standards as are
employment tests and other employment decisions. As such, performance ratings
Legal Reasons For Terminating Employees should be analyzed each rating period to determine if there are gender,
• Probationary Period: employees are given a probationary period in which to race/ethnicity, or age differences. If there are such differences, the organization
prove that they can perform well. Employees can be terminated more easily during should determine whether the differences are justified by factors such as
the probationary period than at any other time. experience or if the differences are due to discrimination. Likewise, the personnel
• Violation of Company Rules: Courts consider Five Factors in determining the decisions that are based on the performance appraisal ratings should be analyzed to
legality of a decision to terminate an employee for violating company rules: ensure discrimination does not occur in the raises, bonuses, promotions, and
1. a rule against a particular behavior must actually exist terminations that result from the performance ratings.
2. a company must prove that the employee knew the rule
3. the ability of the employer to prove that an employee actually violated the Questions that should be asked by the organization during this monitoring
rule process include the following:
4. extent to which the rule has been equally enforced ◦ Has the organization provide training to supervisors regarding how to evaluate
5. extent to which the punishment fits the crime performance, communicate appraisal results, mentor underperforming employees,
• For more tenured employees, the organization must make a reasonable attempt to and make decisions on the basis of the appraisal results?
change the person’s behavior through progressive discipline. ◦ Are there gender, race, ethnicity, disability, or age differences in performance
• Inability To Perform: Employees can also be terminated for an inability to ratings? If so, are the differences supported by actual differences in performance?
perform the job. To do so, though, an organization will need to prove that the ◦ Do employees with similar performance ratings receive similar outcomes such as
employee could not perform the job and that progressive discipline was taken to raises, promotions, discipline, training, or promotion?
give the employee an opportunity to improve. ◦ Are there gender, race, ethnicity, disability, or age differences in the opportunities
• Reduction In Force (Layoff): Employees can be terminated if it is in the best given to improve performance?
economic interests of an organization to do so. ◦ Are there employees who historically have received high ratings suddenly being
given a low rating? If so, is the dropping in ratings due to actual performance
The Termination Meeting: decrease or to potential discrimination?
• Prior To The Meeting: ensure that the legal process has been followed.
• During The Meeting: The supervisor should get to the point about terminating
the employee. The supervisor should rationally state the reasons for the decision,
express gratitude for the employee’s efforts (if sincere), and offer whatever
assistance the organization intends to provide.
• After The Meeting: Once the meeting is over, the natural reaction of the
supervisor is to feel guilty. To relieve some of this guilt, a supervisor should review
A statistical techniques that groups similar test scores based on the standard error
of measurement Susan has a need for someone to vouch for her qualifications and personal
Banding character in order to increase her chances of being considered for a role by
potential employers, as she is interested in applying for a job in a multinational
What is the main reason for conducting drug testing in the workplace? company and is currently preparing her resume and other requirements. What
To ensure a safe work environment exactly is her need?
To protect non-user employees Letter of recommendation
To invade employees’ privacy
To increase insurance costs for the company A selection method involves creating a series of tests that candidates must pass
before advancing to the next stage in the selection process.
When you divide the items on a test into two, you are implementing__ Predictive Bias
Frequency distribution method Selection Ratio
Spearman-Brown prophecy Multiple-hurdle approach
Cronbach’s coefficient alpha Multiple-cutoff approach
Split-half method
The extent to which the instrument accurately assesses its intended target and does
What validity design are you implementing if you want to measure the current not assess other variables.
performance of employees hired in this job? Known-group validity
Concurrent validity design Criterion validity
Inter-method reliability Face validity
Predictive validity design Construct validity
Cost - efficiency
What analysis did the company use when they implemented a cost-cutting strategy
Manufacturing company in Laguna, which has 150 employees, is considering by purchasing Cognitive Ability Tests that are cheaper but equally reliable and
opening a new branch in Cebu. What percentage of the 300 applicants will the valid compared to other tests for their applicants?
employer choose to hire? Criterion validity coefficient
100 Selection ratio
50 Base rate
10 Cost-efficiency
75
What are the benefits for employers of using the in-basket technique in the hiring
How can you ethically improve your resume without engaging in fraud? process?
Tailoring the resume to each job application It delays the hiring process unnecessarily
Using a generic cover letter for all applications It allows them to eliminate all qualified candidates quickly
Falsifying educational qualifications It provide insights into candidates’ actual job performance and skills
Inflating past salary information It helps in selecting candidates based on their fashion sense
 The study of computer-generated graphs and charts
What is the test that explains the question below? Which line is the same length as The analysis of handwriting to determine a person’s character traits
the line on the left?
Personality test A pre-employment requirement that enables companies to assess whether potential
Cognitive ability test employees are physically able to carry out job duties, thus aiding in informed
Agility test hiring decisions.
Perceptual ability test Medical exams
Battle test
The degree to which the test can be applied to different settings. Drug testing
Item stability Psychological exams
Item homogeneity
Construct validity Which of the following questions is NOT commonly asked during a reference
Validity generalization check?
How would you describe the candidate’s work ethic?
Including physical lifting requirements in jobs that do not involve physical lifting What is the candidate’s race or ethnicity?
duties, such as office jobs, is an example of: In what capacity did you work with the candidate?
Top-down selection Can you provide details on the candidate’s attendance record?
Predictive bias
Multiple-cutoff approach If you are an employer and are conducting a reference check, it is appropriate for
Adverse impact you to:
Contact only the most recent supervisor for feedback
The actual execution of job-related tasks is known as: Verify the applicant’s job title and dates of employment
Simulation exercise Skip the reference check if the candidate has impressive qualifications
Work sample Ask closed-ended questions to speed up the process
Applicant skill
Psychomotor ability test What characteristics are evident in the test of reliability?
Stable across time and not highly susceptible
Using a Lawshe table, you need to determine information such as the base rate, the Consistent and conditional
______, and the applicant’s test score. Bias and inconsistent
Ratio validity Stable and free from error
Test of reliability
Validity coefficient What test is applicable in this inquiry? “Do you believe that taking paper or pens
Average tenure without permission from your work place is stealing?”
Which of the following defines graphology? Cognitive ability test
The study of bar graphs and pie charts Simulation exercise
The study of ancient hieroglyphics Integrity tests
Conditional reasoning tests

ENUMERATION:
Examples of group differences in a Measurement Bias directions:
age, race, sex

One of the pre-employment requirements that reduces the risk of hiring is achieved
by assessing a candidate’s suitability for a role through aligning their strengths
with the job requirements.
Practical examination

Employee X assaults Employee Y, resulting in Employee Y being injured and

filing a case against you as their employer. Upon conducting a background check,
it is discovered that Employee X was convicted of aggravated assault five years
prior to being hired by you. Since you failed to conduct a background check, what
claim will your injured employee seek from you?
Reference check
Resume fraud
Lack of drug testing
Negligent hiring

How are decisions typically made in leaderless group discussions?

Through mutual agreement and consensus

What could be the potential issue if an organization employs a multiple-cutoff

approach?
The cost
The applicant’s attitude
The efficiency of the rater
The salary

What is seen as a common type of resume fraud?

Exaggerating job responsibilities
CHAPTER 8 [wala na copy sa bs]