Hra 310 chapter 7

1. Chapter Seven
Measurement and
Decision-Making
Issues in Selection

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Chapter Outline
• Statistical Methods in Selection
• Reliability
• Validity
• Decision Making in Selection
• Utility of a Selection System

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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

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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

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Reliability
• Consistency of measurement
• Systematic Error versus Random Error
• Methods of Measuring Reliability
– Test-Retest
– Interrater Reliability
– Internal Consistency

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Validity
• Content Validity
– Are items a representative sample
– Based on job analysis
– Determined by judgment of job experts
– Lawshe method

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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

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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

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Special Concerns in Validity
• Test Fairness
– Mean differences in test scores
– Equitable treatment
– Differential prediction
– Differential validity
• Validity Generalization

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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

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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

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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

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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

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Review
• Statistical Methods in Selection
• Reliability
• Validity
• Decision Making in Selection
• Utility of a Selection System