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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

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Hra 310 chapter 7

  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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