MGT 429 Chapter 9 Narrated PPT.pptx

Chapter 9
Assessing External Candidates

Learning Objectives (1 of 2)
After studying this chapter, you should
be able to:
• Identify different external assessment goals
• Describe different assessment methods and how
each is best used
• Describe what is meant by an assessment plan
• Describe the difference between screening,
evaluative, and contingent assessment methods
• Discuss why multiple assessment methods are
typically used to decide whom to hire
Strategic Staffing 5th edition © 2023 Chicago Business Press. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part
9-2

Learning Objectives (2 of 2)
After studying this chapter, you should
be able to:
• Identify ways to reduce the adverse impact of an
assessment method
• Describe how analytics is useful in candidate
assessment
• Explain how technology has improved the
assessment process
9-3

External Assessment Goals (1 of 4)
9-4

External Assessment Goals (2 of 4)
• Maximize fit
• Accurate assessment
• Maximize return on investment
• Generate positive stakeholder reactions
• Support talent philosophy and HR strategy
• Establish and reinforce employer value
proposition and image
• Identify new hires’ development needs
• Assess ethically
• Ensure legal compliance
9-5

9-6

Complementary and Supplementary Fit
Complementary fit: when a person adds
something that is missing in the
organization or work group by being
different from the others
Supplementary fit: when a person has
characteristics that are similar to those that
already exist in the organization
9-7

The Importance of Fit
“TEDxMileHigh – Natalie Baumgartner –
Fit” (9:49)
https://www.youtube.com/watch?v=JN3mW2IzCrc
9-8

Possible Assessment Outcomes
9-9

Calculating Return on Investment
9-10

Return on Investment
The savings from avoiding bad hires reflects the fact that
bad hires can actually cost the organization money.
The return on investment from a new assessment method is
the sum of the economic value of improved performance
and the savings from avoiding bad hires.
Although staffing should be seen as an investment rather
than a cost, cost is still important for many companies that
simply don’t have the money to invest in more expensive
systems even if they are more accurate at identifying the
best new hires.
The formula provides a way to estimate the return on
investment of any new assessment method.
9-11

Identify Development Needs
Assessment tests can also identify new hires’
developmental needs.
• If a top candidate’s assessment scores show that his or
her organization and time management skills are good
but their customer service skills need further
development, post-hire training can improve these skills.
Some assessment methods even identify
applicants’ preferred learning styles, which can
decrease training time, improve training
effectiveness, and increase retention.
9-12

Legal Compliance(from the UGESP)
A test of knowledge and abilities must measure a representative sample of
knowledge, skills, or abilities necessary to perform the job and be operationally
defined.
Knowledge
• Must be defined in terms of behavior.
• Each knowledge must be part of a body of learned information that is used
in and necessary for required and observable job behaviors.
Abilities
• Must be defined in terms of observable aspects of job behavior.
• Each ability should be necessary for the performance of important work
behaviors.
• Any selection procedure measuring an ability should closely approximate an
observable work behavior.
To the extent that the setting and manner of the administration of the selection
procedure fail to resemble the work situation, it is less likely that the selection
procedure is content valid, and the need for other validity evidence is greater.
9-13

Hiring Stages
When people first apply for a job, they are considered job
applicants and are evaluated against the minimum acceptable
criteria for the job, such as relevant education and skills.
Those applicants passing the initial screen are considered job
candidates and are assessed in more depth to evaluate their
characteristics and qualifications as defined by the job
specification as well as on dimensions relevant to person-
organization and even person-group and person-supervisor fit.
• A series of evaluative assessments are often performed, with the lowest
performing candidates being screened out after each phase.
The organization then makes its hiring decision from the group of
finalists that remains after all assessment methods have been
completed.
9-14

Some External Assessment Methods
Screening methods: narrow a pool of job
applicants down to a smaller group of job
candidates
• Resumes and cover letters
• Job applications and weighted application blanks
• Biographical information
• Telephone screens
9-15

External Assessment Methods (3 of 4)
Evaluative methods: evaluate the pool of job
candidates to determine who should receive job
offers
• Cognitive and noncognitive ability tests
• Values assessments
• Personality assessments
• Integrity tests
• Polygraph tests
• Job knowledge tests
• Behavioral, situational, and case interviews
• Situational judgment tests
• Graphology
• Job simulations
• Work samples
• Reference checks
9-16

External Assessment Methods (4 of 4)
Contingent methods: job offers are contingent on
passing these
• Medical and drug tests
• Background checks
Derailers: characteristics related to poor fit or
performance that should be screened out
• Being too micromanaging
• Being too sensitive to criticism
• Being too attention-seeking
• Being too moody
• Being high on the dark triad traits of narcissism,
psychopathy, and Machiavellianism
9-17

Comparison of Commonly
Used Assessment Methods
9-18

Evaluating a Method’s Effectiveness (1 of 2)
Validity—whether the assessment method predicts
relevant components of job performance
Applicant reactions—including the perceived job
relatedness and fairness of the assessment method;
perceiving sufficient opportunity to perform, or
believing that one had an adequate opportunity to
demonstrate one’s ability to do the job, influences
perceptions of the fairness of the selection process,
particularly if the person is rejected for the job
Return on investment—whether the assessment
method generates a financial return that exceeds
the cost associated with using it
9-19

Evaluating a Method’s Effectiveness (2 of 2)
Selection ratio—having a low selection ratio means
hiring only a few applicants, which allows an
assessment method to have maximum impact in
improving the performance of the people hired
Adverse impact—an assessment method is more
effective if it predicts job performance and other
important hiring outcomes without discriminating
against members of a protected class
Usability—people in the organization must be
willing and able to use the method consistently and
correctly
9-20

Virtual Interviews
• Zoom and other online meeting tools
can be used as well as third parties
specializing in synchronous and
asynchronous virtual interviewing
(e.g., HireVue)
• Increased in popularity during COVID-
19 and will likely stay common due to
efficiencies for both the employer and
job candidates
9-21

Types of Interviews (1 of 2)
Unstructured interview: questions vary
across candidates and across
interviewers; no scoring key
• Not as job related as structured interviews; legal
risks
• Difficult to compare candidates because the
content differed
9-22

Types of Interviews (2 of 2)
Structured interview: use standardized, job-
related questions with predetermined scores
for different possible answers
• Behavioral interview question: based on the idea that
what an applicant did in the past is a better indicator of
their future job success than what they believe, feel,
think, or know
• “Tell me about a time when you…”
• Situational interview question: appropriate if not all
candidates can be expected to have had a certain
experience (e.g., leading, managing a crisis, etc.)
• “What would you do if…”
9-23

STAR Technique
When answering behavioral interview
questions it can be useful to follow the
STAR response format:
• Situation or Task: describe a specific event or
situation, giving enough detail for the interviewer
to understand the situation and your goals
• Action that you took
• Results that you achieved and what you learned
9-24

STAR Response Example
“Interview Techniques – STAR Method”
(6:18)
https://www.youtube.com/watch?v=0nN7Q7DrI6Q
9-25

Types of Interviews
Semi-structured interview: the interviewer asks
a set of pre-identified open-ended questions,
often behavioral, that prompt discussion and
give the interviewer the opportunity to explore
some responses or themes further
Case interview: interviewer gives the candidate
a situation, problem, or challenge and asks him
or her to address and resolve it
• Popular for consulting positions and jobs that require strategic
thinking, problem-solving, logical reasoning, and analytical
skills
9-26

9-27

Behavioral Interview Question
9-28

Situational Interview Question
9-29

Weighted Application Blank
9-30

9-31

Cognitive Ability Tests
9-32

9-33

Using Multiple Methods
No assessment method is appropriate for all
purposes
Applicant reactions to how they are evaluated
are important; more rigorous assessment
processes can not only be more accurate, but
tend to impress good candidates
Getting consistent evaluations from multiple
assessments increases confidence in the
accuracy of the evaluation
9-34

Reducing Adverse Impact (1 of 2)
Begin with a valid job analysis
Use strategic sourcing and targeted recruitment to increase the
numbers of qualified underrepresented applicants
Expand the definition of job performance to include areas of
contextual performance such as commitment and reliability in
addition to task performance
Use well-developed simulations, interviews, assessment centers,
and situational judgment tests rather than cognitive ability tests
Combine predictors – if a cognitive ability test predicts job
performance but discriminates against women, using it in
conjunction with another valid assessment method that either
does not have any adverse impact based on sex or that
discriminates against men, can reduce or eliminate the adverse
impact of the cognitive ability test
9-35

Reducing Adverse Impact (2 of 2)
Ensure that verbal ability and reading levels of the
assessments are consistent with job requirements based on
a valid job analysis
If only a few applicants are ultimately hired (low selection
ratio), use assessment methods with less adverse impact
early in the selection process and those with greater
adverse impact later in the process
Use banding to assign the same score to applicants who
score in a range on the assessment
• Think of grades – students scoring from 93 to 100% are placed in the
“A” band, from 85 to 95% are placed into the “B” band, etc.
• Only the banded score (A, B, C, etc.) is used to compare applicants
• This technique can reduce an assessment’s adverse impact but will
also reduce the validity of the test
9-36

Assessment Plan (1 of 2)
After creating a job requirements matrix, the next step is to
identify the best way of assessing each important job
qualification.
The assessment plan describes:
• Which assessment method(s) will be used to assess each of the
characteristics on which applicants will be evaluated
• In what sequence the assessments will take place
• What weight each assessment will receive in determining an overall
score for that characteristic based on the importance of each
characteristic to job performance.
Characteristics that will be trained after hire are not
assigned to any assessment method, but any existing
qualifications required to qualify for the training program
should be listed.
9-37

Assessment Plan (2 of 2)
9-38

Choosing Assessment Methods
The choice should be based on which methods best assess the
applicant characteristics or competencies identified as important
during the job analysis as well as the ability of the assessment
method to meet other important goals of the external
assessment process.
Because different methods are good at assessing different things,
and differ in their cost, validity, applicant reactions, and adverse
impact, it is often necessary to use more than one assessment
method.
Just because an assessment method results in adverse impact, if
it does a good job predicting job performance it may be
worthwhile to investigate the usefulness of various strategies to
reduce its adverse impact so that it can continue to be used.
9-39

Analytics
Algorithms are sometimes used to
quickly evaluate job applicants
• If not created properly, they can perpetuate
existing biases
• Focus on what predicts employee success and
why
9-40

Technology
Artificial intelligence and machine
learning algorithms can help us
overcome implicit and explicit boas and
improve new hire diversity
• Video scoring algorithms have features that can
make them essentially blind to many of the
protected characteristics we unfairly use to
evaluate others (age, race, gender, etc.)
9-41

MGT 429 Chapter 9 Narrated PPT.pptx

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