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Criteria:
 Standards for
Decision Making
     Selection, Criteria,
 Job Analysis, Job Evaluation
Objectives

• Clarify the use of criteria and selection process
• List the uses of job analysis information
• Describe the sources and ways of collecting job analysis
  information
• Discuss the different job analysis methods
• Describe the evidence for reliability and validity of job
  analysis methods
• Explain how job evaluation is used to set salary levels for
  jobs
Selection

•   What is selection?
     – Using scientific methodology to choose one alternative (job candidate) over another.
          • Job Analysis
          • Measurement
          • Statistics

•   Why is selection important?
     – Decreases the likelihood of hiring “bad” employees
     – Increases the likelihood that people will be treated fairly when hiring decisions are made
          • Reduces discrimination
          • Reduces likelihood of discrimination lawsuits

•   What do I/O psychologists need to know about selection?
     – How to select predictors of job performance (criteria problem)
     – How to accurately indentify and validate predictors for specific jobs (job analysis)
          • Rely on cognitive and personality variables
     – How to reliably and validly measure these predictors
     – How to use these predictors to make selection decisions
Criteria

• Standards used to help make evaluative
  judgments about objects, people, or events.
Example:
  What is good Teaching?
       Student A: Preparedness, Relevance, Clarity
       Student B: Enthusiasm, Inspiration, Ability
Note: There is a need to level-off or agree in one general criteria
  to define the context of ‘good teaching’
Criteria

• Criteria - standards used to judge the quality
  of (discriminate among) alternatives.

• For I/O psychologists, this means judging the
  quality of employees, programs, and units in
  the organization
Points to Ponder

• Values and taste also dictate people’s choice
  of criteria.

• Even people who use the same standards in
  making judgements do not always reach the
  same conclusion.
Conceptual vs Actual Criteria

• Conceptual Criterion
  – The theoritical standard that researchers seek to
    understand through their research.
  – An abstract idea that can never be actually be
    measured.
• Actual Criterion
  – The operational or actual standard of measure or
    assess.
  – Served as measure of the conceptual criteria.
Criteria of College Student

Conceptual Criteria     Actual Criteria
Intellectual Growth   Grade point average
                      or QPI
Emotional Growth      Adviser rating of
                      emotional maturity
Citizenship           Number of volunteer
                      organization joined
                      in college
CRITERION
               DEFICIENCY
Conceptual
 Criterion
              CRITERION
              RELEVANCE

  Actual
  Criterion
               CRITERION
               CONTAMINATION
• Criterion Deficiency: The degree to which the
  actual criteria fail to overlap the criteria – that is,
  how deficient the actual criteria are in
  representing the conceptual ones.
• Criterion Relevance: The degree to which the
  actual criteria and the conceptual critria coincide.
• Criterion Contamination: The part of the actual
  criteria that is unrelated to the conceptual
  criteria.
Issue: Good College Student
Intellectual
  Growth       What If:
               Student A know nothing about
               the subject while student B
               has prior knowledge. By the
               end of the learning period,
               student A might gained more
  Grade        intellectual knowledge but
  point        student B might get a higher
               grade since he knew the topic
  Average      at hand. Therefore, using GPA
               as our criterion would falsely
               conclude which student grew
               more intellectually.
Emotional
 Growth



 Adviser’s
 Rating
Citizenship



  number of
  Volunteer
  Org.joined
  in College
Example: College Success
                                           Extra-
                                         curricular
                                       Involvement
                                                                             Morally
Physically         Have latest                           Co-curricular       Up-right
                    gadgets                              Involvement
 Healthy


                                 College
               Spiritually
               Developed         Sucess                         Emotional
                                                                Stable




 Travel                                                                     Positive
 Abroad                       Numerous
                                                    Above
                                                                             Self-
                             Relationship         Average QPI               Esteem
                               (BF/GF)
Classification of Criteria
   I/O Psychologists try to         Judgements quantifiable
                                        More easily made about
    choose criteria that assess       employees performance
                                         Production
    performance excellence.             general factor touchdowns
                                           Number of
                                         (effectiveness)
                                           Number of units
   Criteria are typically
    classified in one of two ways              specific factors
                                                produced
                                          Sales quantity of work
      Objective                                   quality of work
                                          Tenure/Turnover
      Subjective
                                            voluntariness
                                     Note: More complex jobs
                                      requirefunctionality for
                                           
                                              more criteria
                                          Absenteeism
                                      effective evaluation
                                          Accidents
                                          Theft
Illegal Criteria
 Title VII of the 1964 Civil Rights Act prohibits using
  selection practices that have an unequal impact on
  members of a different:
   Race
   Color
   Sex
   Religion
   National Origin
Types of Illegal Discrimination
 Disparate Treatment (Opportunities)
    Discrimination decisions based on one of five prohibited categories

 Disparate Impact (Outcomes)
    Illegal discrimination is any practice (without a business justification) that has
     unequal consequences for members of protected groups.

 Roger Parloff, Fortune senior editor:
    Though disparate treatment and disparate impact cases are both aimed at
     eradicating the same thing, there is potential tension between them.
          The goal of disparate treatment cases is to guarantee every worker equal
           opportunity, but not equal outcomes.
          The focus of disparate impact cases is on equal outcomes.
     If one pursues equal outcomes too single-mindedly, one can compromise the
       principle of equal opportunity by inducing the use of quotas.
Determining Disparate Impact
 The 4/5thsapplicants
     100 male Rule                     50 female applicants
    Disparate impact occurs if the selection ratio for any
     minority group is less than 4/5ths of the* selection ratio
      20 males selected                     50 .16 = 8
     of the majority group
         20/100 = .20            At least 8 females should be selected

     .20 * 4/5ths(.80) = .16



At least 16% of people from minority group should be selected using a
given procedure.
Summary
   Criteria
       Reliable and valid predictors of job performance.
       All criteria suffer from:
           Deficiency
           Contamination
       Criteria typically classified as:
           Objective
           Subjective
              These labels can be misleading
       There are several illegal criteria
       There are two types of illegal discrimination
          Disparate treatment
          Disparate impact
Job Analysis
Our Textbook: Definition

• Job analysis
   – A formal procedure by w/c the content of a job is defined in
     terms of tasks performed and human qualifications needed to
     perform the job.
   – Harvey (1991) definition: the collection of data describing
     observable job behaviors performed by workers, including both
     what is accomplished as well as what technologies are employed
     to accomplish the end results, and verifiable characteristics of
     the job environment w/ w/c workers interact, including
     physical , mechanical, social, and informational elements.
   – A procedure useful in identifying the criteria or performance
     dimensions of job.
What Is Job Analysis?

• Job analysis is the method for describing jobs and/ or the
  human attributes necessary to perform them
   – The procedure must be systematic
   – A job is broken into smaller units
   – The analysis results in some written product, either electronic or
     on paper
   – Job analysis techniques can be used to collect information that
     job oriented or person oriented, depending on the purpose of the
     job analyst
• The Job-oriented Approach
   – Provides information about the nature of tasks does on the job
       • Describes common features that cut across tasks that provide a picture
         of what people do on a job
What Is Job Analysis?

– Tasks can be divided into a hierarchy in which higher-level descriptions are
  broken down into smaller pieces of the job
– Levine (1983) divides the major functions of job into 4 levels of specificity:
    • 1. Duty 2. Tasks 3. Activity 4. Element
        – Duty is a major component of a job
            » Accomplished by performing one or more associated tasks
        – Task is a complete piece of work that accomplishes some particular objective
        – Task can be divided into activities which are the individual parts that make up the task
        – To accomplish this activity, a number of very specific actions, or elements are involved
– Contain a great deal of very specific information about what happens on a
  particular job
– The level of job actions produces a long and detailed report
What Is Job Analysis?

• The Person-Oriented Approach
   – Description of the attributes, characteristics or KSAOs necessary for a person to
     perform a particular job successfully
   – KSAOs are the knowledge, skills, abilities and other personal characteristics
     necessary for a job
        •   First 3 characteristics mainly on job performance itself
        •   Other relate to job adjustment and satisfaction
        •   Knowledge is what a person needs to know to do a particular job
        •   Skill is what a person is able to do an the job
        •   Ability is a person’s aptitude or capability to do job tasks or learn to do job tasks
        •   Other personal characteristics relevant to the job that is not covered by the other three
   – KSAO is an attribute or characteristic that a person needs in order to do a
     particular task or tasks
Purposes of Job Analysis?

• Career Development
   – Career ladder- a progression of position is established for individuals who acquire the
     necessary skills and maintain good job performance
   – Not everyone climbs to the top of the ladder
        • Limited opportunities for promotion and inability to achieve the necessary KSAOs
   – Job analysis provide a picture of the KSAO requirements for jobs at each level of
     career ladder
• Legal Issues
   – Laws prohibiting discriminatory employment practices, especially in the hiring of
     employees
   – Job analysis provides a list of relevant KSAOs that can be used as the basis for hiring
     in place of irrelevant personal characteristics
   – Legal concept in US employment is that of essential function, which is an action that
     must be done on a job, especially deciding whether to hire a person with a disability
Purposes of Job Analysis?

   – The nonessntial function ia an action that might be done occasionally, but is
     not important for a person in that position to do
   – Job analysis is used to identify essential functions and KSAOs and thus can
     help ensure that decision affecting people are based on personal factors that
     are job relevant
   – When KSAOs are derived from a properly conducted job analysis, employer
     actions based on those KSAOs are likely to be legal
• Performance Appraisal
   – A well-designed performance appraisal system will be used on a job analysis
   – Job-oriented analysis provides a list of the major components of a job, which
     can be used as dimensions for performance evaluation
   – The behavior-focused performance appraisal methods are based on a job
     analysis
Purposes of Job Analysis?

   – Critical incidents that represent different levels of job performance, from
     outstanding to poor
        • The good incident would describe something a person did that worked well
• Selection
   – Person-oriented job analysis should be the first step in the design of an employee-
     selection system
   – KSAOs for a job are identified, procedures can be chosen to determine how well job
     applications fit the requirements for the job
   – A person-oriented job analysis produces a list of KSAOs for a particular job
        • Expected to have at the time of hiring
        • Characteristics that will be developed on the job through experience and training
• Training
   – KSAOs that applicants do not have when they apply for a position are areas for
     training after they are hired
Purposes of Job Analysis?

   – Training program is based on a through analysis of the KSAO
     requirements for a job
   – Training efforts might be directed if the characteristics can be
     acquired
• Research
   – An additional use of job analysis information is in research
   – Determine the role of job requirements or task characteristics in
     organizational phenomena
   – Ranging from employee motivation and performance to health
     and safety
Sources of Job Analysis Info?

• Who provides the information?
   – SME (Subject Matter Experts)
   – Job analysis information comes from one of four sources:
               a. Job analysts   c. Supervisors
               b. Job incumbents d. Trained observers
   – Job analysts and trained observes actually do the job or spend time
     observing employees doing job and translate those experiences into a
     job analysis
   – Incumbents and supervisors are considered subject-matter experts,
     people with detailed knowledge about the content and requirements
     of their own jobs or the jobs that they supervise
Sources of Job Analysis Info?

• How do people provide job analysis information?
    – Perform Job
        • Benefits:
             – The job analyst can perform the tasks as an employee would or under simulated conditions
             – The analyst gains insight into the nature of the tasks and how they interrelate
             – Provides an apperception for the context in which people do their jobs
        • Not often used:
             – Experiencing the job by doing it can be costly and time-consuming
             – Some jobs are dangerous, particularly for an inexperienced person
             – Dose not clearly indicate that tasks can differ among employees with the same job title
    – Observe
        • Collect information about a job is to observe people doing it
        • Observing employees can give insights into the context in which job tasks are performed
        • It can also be expensive and time-consuming
Sources of Job Analysis Info?

– Interview
   • Interviewing subject-matter experts who are familiar with the job
   • Interviews are carried out by job analysts or trained interviewers
   • Used to generate listed of all tasks and activities done by everyone who has
     the same job title
   • Other tasks might be performed by every employee, but only on race occasions
– Questionnaire
   • Most efficient means of collecting job analysis information
   • No other technique can provide as much information about jobs with as little
     effort on the part of the job analyst
– Multiple methods
   • Often used so that the limitations of one are offset by the strengths of
     another
Methods Job Analysis?

• Job Components Inventory (JCI)
   – Allows for the simultaneous assessment of the job requirements and person’s
     KSAOs
   – The inventory includes KSAOs for both jobs and individuals
   – 5 components of job features are represented:
        •   Use of tool and equipment
        •   Perceptual and physical requirements
        •   Mathematics
        •   Communication
        •   Decision making and responsibility
• Functional Job Analysis
   – Provides both a description of a job and scores in several dimensions for the job and
     potential workers
   – Procedure can be used to make comparisons among jobs
Methods Job Analysis?

• Occupational Information Network
   – Is a computer-based resource for job-related information on approximately
     1,100 groups of jobs sharing common characteristics
   – Occupation characteristics deal with other kinds of information are
     concerned with characteristic of job tasks
   – Look up a particular job and get a description and detailed information
     about 6 domains
• Position Analysis Questionnaire
   – Contains 189 items dealing with the task requirements or elements of jobs
   – The elements of the PAQ are general and allow comparisons of different jobs
     on a common set of dimensions or KSAOs
Methods Job Analysis?

   – Cover a wide variety of task requirements
        •   The inputting and processing of information
        •   The use of equipment and tools
        •   General body movement
        •   Interpersonal interaction
        •   Work context
   – PAQ generates a standard list of KSAOs, jobs can be compared on their KSAO
     requirements
• Task inventions
   – Is a questionnaire that contains a list of specific tasks that might be done on the job that
     is being analyzed
   – Rating might be made on dimensions:
        •   Amount of time spent doing the task
        •   Critically of the task for doing a good job
        •   Difficulty of learning the task
        •   Important of the task
Methods Job Analysis?

• Combination Job Analysis Method (C-JAM)
   – Both interviews and questionnaires to collect information about
     KSAOs and tasks
   – Produces a detailed picture of the KSAOs for a job and the task
     performed
• Choosing a Job Analysis Method
   – Job analysis experts to rate the effectiveness of seven job
     analysis methods for 11 purposes
   – Choice of method requires consideration of several factors,
     including cost and purpose
Our Textbook: Job Analysis Procedure

Job Family                                                CLERICAL




Job                     Secretary                       Receptionist                      Data Entry




              Person 1:          Person 2:      Person 3:         Person 4:      Person 5:         Person 6:
Position     Task A, B, C       Task A, B, C   Task D, E, F      Task D, E, F   Task G, H, I      Task G, H, I




             A. Types                          D. Answers                       G. Enters data
                correspondence                    telephone                     H. Updates files
Task         B. Schedule meetings              E. Greets Visitors               I. Reconciles
             C. Takes dictation                F. Maintains register               statements
Our Textbook: Job Analysis Procedure

• Task Oriented Procedure
   – A procedure or set of operations in job analysis designed to
     identify important or frequently performed tasks as a means of
     understanding the work performed.
• Functional Job Analysis
   – A method of job analysis that describes the content of jobs in
     terms of PEOPLE, DATA, THINGS.
• Worker-oriented procedure
   – A procedure or set of operations in the job analysis designed to
     identify important or frequently utilized human attributes as a
     means of understanding the work performed. The use of
     KSAOs.
Our Textbook:
Job Analysis Collection of Information
• Interviews (SMEs)
• Direct Observation
• Questionnaires or inventories
   • Taxonomy
   • Position Analysis Questionnaire
   • Occupational Information Network
Reliability and Validity of Job Analysis
              Information
• Reliability
   – Test-retest reliabilities ranged from 0.68 to 0.90
   – Reasonably consistent in their job analysis rating when they
     repeated them over time
   – Correlations among rating of different people ranged from 0.46
     to 0.79
• Validity
   – The best evidence for the validity of job analysis comes from
     studies that compared different methods or sources information
   – Job analysis ratings might be less valid than I/O psychologists
     usually assume
   – Need to improve job analysis procedures, the various methods
     are important tools used by I/O psychologists
Choosing Predictors of Job Performance
   When selecting new employees, I/O psychologists use
    criteria that will identify effective on-the-job
    performance
Performance = (KSA)*Motivation – Situational Constraints

   Performance is a function of the following:
     Knowledge

     Skills

     Abilities

     Motivation

     Situational   Constraints
Job Analysis
   Describes:
     the   tasks that are performed
       type  of work
       tools used
       working conditions

     human qualities (KSAOs or competencies) needed to
      perform the work

   Tells us what tasks people do and the knowledge,
    skills and abilities they need to accomplish those
    tasks.
Purposes of Job Analysis

   Recruiting
   Career development
       What does it take to move up?
   Legal defense
       Essential functions: What tasks must be done?
   Performance appraisal
   Selection
       What sorts of people should we hire?
   Training
       What knowledge and skills are needed?
   Research
Job-Oriented Job Analysis

   Job components (for a carpenter)
       Duty: construct houses
       Task: build kitchen cabinets
       Activity: assemble cabinets
       Element: drill holes
Person-Oriented Job Analysis

   KSAO’s (for a carpenter)
       Knowledge: Have information to do a task
       Skill: Practiced act or behavior.
       Ability: Stable capacity to do task.
       Other personal characteristics: personality, interests, etc.
Examples Of KSAOs For Different Occupations
  Job        Knowledge            Skill           Ability     Other Personal
                                                              Characteristics

Lawyer      Constitutional   Writing clearly   Communica-     Willingness to
            rights                             tion           work long
                                                              hours

Nurse       Surgical         Drawing blood     Remain calm    Lack of
            procedures                         in a crisis    squeamishness
                                                              in the sight of
                                                              blood

Plumber     Pipe design      Soldering         Hand-eye       Willingness to
                             joints            coordination   get dirty

Police      Knowledge of     Writing clearly   Vigilence      Willingness to
Officer     legal arrest                                      risk personal
            procedures                                        safety
Hiring the Best

   Job: College Professor
   What are the major duties of a college professor?
   What tasks are performed to complete each duty
   Develop a set of KSAO’s necessary for these tasks.
       should be useable for recruiting and evaluating
   Challenges?
   What other information would you want? How would you
    get it?
Data Collection Approaches

   Questionnaire            Who do you collect data
       diaries               from?
   Interview
       critical incidents   Subject Matter Experts
   Observation                -incumbent
   Analyst does work          -supervisor
                               -co-worker
Occasions for Formal Job Analysis

   Major Restructuring
     afterdramatic growth
     downsizing

     new positions

   Large Selection Procedure
   Dramatic changes in technology
   Passage of Time
Job Evaluation
Job Evaluation

• Refers to a family of quantitative techniques that used to determine
  the salary levels of jobs
• Job evaluation determines are relative salaries for different jobs by
  mathematically combining job information
• Point method
    – First, a panel determines the compensable factors for the job
    – Second, a panel judges the degree to which each job has each compensable
      factor
        • Quantitative scale so that each job has each compensable factor
    – Third, the points for the factors are summed for each job
    – Fourth and final, the plot the actual salaries for each job against the point
      totals for each job
    – The point system is just one of many different job evaluation methods
Job Evaluation

• Comparable Worth
   – Used to demonstrate pay discrimination against women
   – Means that different but comparable jobs should be paid the
     same
       • Held predominantly by women contribution as much to the organization
         as jobs held primarily by men, the salaries for the jobs should be the same
   – Using the mathematical procedures to calculate how much
     adjustment each of the underpaid jobs should receive
       • Might undervalue lower-paid predominantly women-held jobs and
         overvalue the higher-paid, predominantly men-held jobs
Future Issues and Challenges

• Job analysis is one of the most frequently used tools of practicing I/O
  psychologists
    – Concerned with developing new methods rather than with the validity of old methods
• Rater training is another area of possible research
    – Better understanding of how people make their ratings would suggest useful ways of
      training raters
• Increased call for organizations to keep their employee actions, such as
  promotions and selection
    – Ensured that decisions about whom to hire or promote will be based on the KSAOs for
      a job
• Electronic tools in conducting job analysis
    – More accurate picture of the time spent in various activities
• More focus on describing competencies rather than on what are often
  minimum KSAO requirements found in a typical job analysis
Our Textbook: Job Evaluation

• Job Evaluation
  – A procedure for assessing the relative value of
    jobs in an organization for the purpose of
    establishing levels of compensation.
• External Equity
  – A theoretical concept that is the basis for using
    wage and salary surveys in establishing
    compensation rate.
Our Textbook: Job Evaluation

• Internal Equity
  – A theoretical concept that is the basis for using job
    evaluation in establishing compensation rate.
• Compensable Factor
  – A dimension of work used to assess the relative
    value of a job for determining compensation rates.
  – In practice: Effort, Skills, responsibility, working
    condition
  – Others: Know-how, problem solving,
    accountability, additional compensable elements
Our Textbook:
       Job Performance Criteria
• Objective Performance Criteria
  – A set of factors used to assess job performance
    that are (relatively) objective or factual in
    character.
• Subjective Performance Criteria
  – A set of factors used to assess job performance
    that are product of someone’s (e.g. supervisor,
    peer, customer) subjective rating of these factors.
Our Textbook: 8 MAJOR
         Job Performance Criteria
1.   Production
2.   Sales
3.   Tenure or Turnover
4.   Absenteeism
5.   Accidents
6.   Theft
7.   Counterproductive Workplace Behaviors
8.   Customer-Service Behavior
Predictors:

Psychological
Assessments
Objectives
• To increase your understanding of psych
  testing and its use in the workplace,
  including:
  – The benefits of using psych testing
  – How psych tests can be most effectively used in
    the selection and development process
  – The types of tests available
  – The limitations of psych tests
• What is testing?
• Why do we have so many tests?
• What are the pros and cons to
  testing?
• How can we use testing to
  improve . . .?
• What types of tests do we take?
What is the cost of a bad hire?

• Scenario – You have interviewed your preferred candidate.
  He/she looks good on paper, interviews well and seems to fit
  the role requirements.
• You have been looking to fill the role for a while and are keen
  to make a placement.
BUT
• This role has high exposure in the organisation, managing a
  large customer focused project.
• You have been unsuccessful in finding the right candidate until
  now, the project is experiencing delays which is ultimately
  costing you money.
• The candidate looks good and you choose not to invest
  additional cost and time into psych testing.
 Sept 2009          © Copyright 2009 Psylutions Pty Ltd.
                        Commercial in Confidence.
Possible Outcomes
• Best case scenario – Candidate comes on board, fits in
  well with the team, project is a roaring success and
  you get promoted.
• Worst case scenario – Candidate comes on board, has
  a number of behavioural issues that emerge in relation
  to their management of others, management of clients,
  management of the project which were not obvious in
  the interview. Candidate leaves abruptly. Company
  loses money. Project gets shelved, you get fired.

So, what is the cost of a bad hire?
   Sept 2009                © Copyright 2009 Psylutions Pty Ltd.
                                Commercial in Confidence.
What is the cost of a bad hire?

• Direct costs – advertising, engaging recruitment agency
• Indirect costs – time spent assessing resumes,
  interviewing, training new employee
   – Loss of IP
   – payouts?
   – Performance lag time.


What if you could minimise these costs overall by using
 psych testing?

  Sept 2009          © Copyright 2009 Psylutions Pty Ltd.
                         Commercial in Confidence.
Client Testimonials
• Case 1:
   – Client was taking on a new employee who looked fantastic on
     paper and interviewed well, and decided not to put them through a
     psych test. Candidate lasted 6 weeks.
• Case 2:
   – Client was made aware of a candidate’s vulnerabilities for a
     particular role through psych testing, but decided to proceed with
     offering the candidate the role regardless. Candidate’s
     vulnerabilities emerged on the job, and they were managed out of
     the organisation within three months.
• Case 3:
   – Client reported that the strengths and development opportunities
     identified by the psych test were true of the individual in the role 6
     months later.

Sept 2009               © Copyright 2009 Psylutions Pty Ltd.
                            Commercial in Confidence.
How can you afford to not use psych
 testing as part of your selection and
        development process?


Sept 2009   © Copyright 2009 Psylutions Pty Ltd.
                Commercial in Confidence.
Benefits of using psych testing in the
            recruitment process
• Adds rigour to the entire recruitment process
  – Psych tests will return the same results if a candidate
    takes the test now and in 6 months time. They are
    reliable.
  – Psych tests have been demonstrated to predict on the
    job performance.
  – Psych tests are a valid measure of behaviour, they
    measure what they purport to measure - on the job
    performance.
  Sept 2009        © Copyright 2009 Psylutions Pty Ltd.
                       Commercial in Confidence.
Benefits of using psych testing in the recruitment process


• Provides a methodology for predicting
  performance against key competencies
     – Competencies refer to a set of behaviours
       required to successfully perform job tasks.
     – Psych tests are designed to objectively measure
       candidate’s behaviour in relation to the key
       competencies of the role.


Sept 2009           © Copyright 2009 Psylutions Pty Ltd.
                        Commercial in Confidence.
Benefits of using psych testing in the recruitment process


• Provides a measure of performance and potential
  – Performance refers to past behaviours as measured by
    interviews, references checks and resumes.
  – Potential refers to a candidate’s capacity to perform
    on the job and develop skills.
  – Although they can be measured separately, we
    recommend the combination of performance and
    potential which allows you to take a more holistic
    assessment approach to understanding the candidate’s
    fit for the role.
  Sept 2009           © Copyright 2009 Psylutions Pty Ltd.
                          Commercial in Confidence.
Below the Line
• Assesses Knowledge, Skills,
  Abilities and Other (KSAOs)
• People are hard to read:
  Using psych testing is about
  getting to the “below the
  line” assets such as motives,
  attitudes, drivers
• Psych testing can also be
  used in support of “gut feel,”
  to inform decisions.
  Sept 2009      © Copyright 2009 Psylutions Pty Ltd.
                     Commercial in Confidence.
Benefits of using psych testing in the recruitment process
• Assesses a wide range of job relevant skills and behaviours
   –   learning & cognitive style preferences
   –   emotional intelligence
   –   personal & leadership style
   –   team skills
   –   sales skills
   –   customer service skills
   –   motivation
   –   Microsoft Office skills
   –   IT programming
   –   values
   –   derailers
   Sept 2009            © Copyright 2009 Psylutions Pty Ltd.
                            Commercial in Confidence.
Benefits of using psych testing in the recruitment process


• Is resource effective –for volume
  recruitment eg. Graduates
     – Eg. Online abilities can save time and money in
       screening a large amount of candidates in an
       objective manner.




Sept 2009           © Copyright 2009 Psylutions Pty Ltd.
                        Commercial in Confidence.
What psych tests are available?


•   Abilities (verbal, numerical, abstract)
•   Personality or work style preferences
•   Sales behaviours/preferences
•   Customer service
•   Motivation
•   Computer software skills
•   Or any other assessments you can think of!
Sept 2009        © Copyright 2009 Psylutions Pty Ltd.
                     Commercial in Confidence.
Psychological Testing
• A psychological test is a
  standardized measure of a
  sample of a person’s behavior
  that is used to measure the
  individual differences that exist
  among people.
Types of Psychological
       Testing
• There are two types of
  Psychological tests.
  –Mental Ability tests
  –Personality tests
Why use tests?
• Psychological
  tests are used in
  research,
  however, most
  serve a
  practical
  purpose.
Mental Ability Tests
• Includes three subcategories.
  –Intelligence tests
  –Aptitude tests
  –Achievement tests
Intelligence tests
         • Measure
           general mental
           abilities. They
           are intended to
           measure
           intellectual
           potential.
Examples
• Emily is four years old. Her big
  sister Amy is three times as old as
  Emily. How old will Amy be when
  she is twice as old as Emily?
• WOLF is to FLOW as 8526 is to:
  2856 - 6258 - 5862 - 5682 - 6852
Examples
• Hanger is to closet as tree is to:
  Branch - Bushes - Forest -
  Ground - Nest
• What would be the next number in
  this series? 15 ... 12 ... 13 ... 10 ...
  11 ... 8 ... ?
Aptitude tests
• Assess talent
  for specific
  kinds of
  learning.
  (clerical speed,
  mechanical
  reasoning, etc.)
Examples
•   Are You a Self-Starter?
•   Climbing the ladder would bring a load
    of responsibility and pressure that I
    wouldn't want to carry.
•   If my boss or supervisor told me I were
    being promoted, the fact that they had
    so much confidence in my abilities
    would:
Achievement tests
         • Gauge a
           person’s
           mastery and
           knowledge of
           various subjects
Examples
• Who was the 43rd President of
  the United States?
• What is 5x6 divided by 2?
• How many branches of
  Government exist in the U.S.?
Personality Tests
• Measure
  aspects of
  personality,
  including
  motives,
  interests,
  values, and
  attitudes.
Examples
    • Do you become
      upset when. . ?
    • Do you feel
      like you lose
      control when. .?
    • Are you happy
      when . . ?
In our TextBook
• Speed Test vs. Power Test

• Individual Test vs. Group Test

• Pen & Paper Test vs.
  Performance Test
Test Design
• In order for a test to be accurate, it
  must meet the three standards
  below.
  – Standardization
  – Validity
  – Reliability
Standardization
• Standardization refers to the
  uniform procedures used in
  administrating and scoring a test.
• Test norms: information used to
  rank scores in relation to other
  scores on the test.
• Can you think of examples
Validity
• Examples
• What psychologist     • Refers to the
  promoted                ability of a test
  introspection?
• Who developed the
                          to measure
  four mechanisms for     what it was
  dreaming?               designed to
• What school of
  psychology does
                          measure.
  Skinner belong to?
Validity
Construct Validity
• Degree to w/c a test is accurate and faithful
  measure of the construct it purports to
  measure.

Criterion-related Validity
• The degree to w/c a test forecasts or is
  statistically related to a criterion.
Validity
Validity Coefficient
• A statistical index that reveals the degree of
  association between two variables. Often used
  in the context of prediction.
Content Validity
• The degree to w/c subject matter experts
  agree that the items in a test are a
  representative sample of the domain of
  knowledge the test purports to measure.
Validity
Face Validity
• The appearance that items in a test are
  appropriate for the intended use of the test by
  the individuals who take the test.
Reliability
                     • Example
• Reliability        • You take a personality
  refers to the        test and are scored as
  measurement          “assertive”. Three
                       weeks later you take
  consistency of a     the same test and are
  test (or other       scored as “passive”. A
                       drastic change is
  techniques).         probably a result of an
                       unreliable test.
Testing Reliability
Test-retest
–Comparing subjects’ scores on
 two administrations of a test.
Correlation Coefficient
–A numerical index of the degree
 of relationship (-1, +1)
Testing Reliability
Equivalent-form
–Reveals the equivalence of test
 scores between two versions or
 forms of the test.
Internal-consistency
–Reveals the homogeneity of the
 items comprising a test.
Testing Reliability
Inter-rater
 –Reveals the degree of agreement
  among the assessments of two or
  more raters.
Visual example
Visual example
Think!
• Why do we have so many tests?
• How can we use testing to improve
  . . .?
• How does psychological testing
  apply to school, careers, sports,
  etc?
Ethical Standards
• Invasion of Privacy – a condition
 associated w/ testing pertaining to asking of
 questions on a test that are unrelated to the
 test’s intent or are inherently intrusive to the
 test taker.
• Confidentiality - a condition associated
 w/ testing pertaining to w/c parties have
 access to test results.
Test Content
       (Major types of construct)
•   Intelligence Test
•   Mechanical Aptitude Test
•   Sensory/Motor Ability Test
•   Personality Inventories
•   Integrity Test
•   Physical Abilities Test
•   Multiple-Aptitude Test Batteries
•   Computerized Adaptive Testing
Other methods
• Interviews (Unstructured vs. Structured)
• Situational Interviews (Experience based vs
  situational questions)
• Work Samples
• Situational Exercise
• Biographical Information
• Letter of Recommendation
• Drug Testing
Controversy
The use of the following test…
• Polygraphy or Lie Detection
• Graphology
• Emotional Intelligence
Four major standard in
          selecting a test
•   Validity
•   Fairness
•   Applicability
•   Cost
By the way…
• What is the difference between psych
  testing and psych assessment or
  evaluation?
• What are the general reasons of the use of
  psychological tests?

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I/O chapter 4

  • 1. Criteria: Standards for Decision Making Selection, Criteria, Job Analysis, Job Evaluation
  • 2. Objectives • Clarify the use of criteria and selection process • List the uses of job analysis information • Describe the sources and ways of collecting job analysis information • Discuss the different job analysis methods • Describe the evidence for reliability and validity of job analysis methods • Explain how job evaluation is used to set salary levels for jobs
  • 3. Selection • What is selection? – Using scientific methodology to choose one alternative (job candidate) over another. • Job Analysis • Measurement • Statistics • Why is selection important? – Decreases the likelihood of hiring “bad” employees – Increases the likelihood that people will be treated fairly when hiring decisions are made • Reduces discrimination • Reduces likelihood of discrimination lawsuits • What do I/O psychologists need to know about selection? – How to select predictors of job performance (criteria problem) – How to accurately indentify and validate predictors for specific jobs (job analysis) • Rely on cognitive and personality variables – How to reliably and validly measure these predictors – How to use these predictors to make selection decisions
  • 4. Criteria • Standards used to help make evaluative judgments about objects, people, or events. Example: What is good Teaching? Student A: Preparedness, Relevance, Clarity Student B: Enthusiasm, Inspiration, Ability Note: There is a need to level-off or agree in one general criteria to define the context of ‘good teaching’
  • 5. Criteria • Criteria - standards used to judge the quality of (discriminate among) alternatives. • For I/O psychologists, this means judging the quality of employees, programs, and units in the organization
  • 6. Points to Ponder • Values and taste also dictate people’s choice of criteria. • Even people who use the same standards in making judgements do not always reach the same conclusion.
  • 7. Conceptual vs Actual Criteria • Conceptual Criterion – The theoritical standard that researchers seek to understand through their research. – An abstract idea that can never be actually be measured. • Actual Criterion – The operational or actual standard of measure or assess. – Served as measure of the conceptual criteria.
  • 8. Criteria of College Student Conceptual Criteria Actual Criteria Intellectual Growth Grade point average or QPI Emotional Growth Adviser rating of emotional maturity Citizenship Number of volunteer organization joined in college
  • 9. CRITERION DEFICIENCY Conceptual Criterion CRITERION RELEVANCE Actual Criterion CRITERION CONTAMINATION
  • 10. • Criterion Deficiency: The degree to which the actual criteria fail to overlap the criteria – that is, how deficient the actual criteria are in representing the conceptual ones. • Criterion Relevance: The degree to which the actual criteria and the conceptual critria coincide. • Criterion Contamination: The part of the actual criteria that is unrelated to the conceptual criteria.
  • 11. Issue: Good College Student Intellectual Growth What If: Student A know nothing about the subject while student B has prior knowledge. By the end of the learning period, student A might gained more Grade intellectual knowledge but point student B might get a higher grade since he knew the topic Average at hand. Therefore, using GPA as our criterion would falsely conclude which student grew more intellectually.
  • 13. Citizenship number of Volunteer Org.joined in College
  • 14. Example: College Success Extra- curricular Involvement Morally Physically Have latest Co-curricular Up-right gadgets Involvement Healthy College Spiritually Developed Sucess Emotional Stable Travel Positive Abroad Numerous Above Self- Relationship Average QPI Esteem (BF/GF)
  • 15. Classification of Criteria  I/O Psychologists try to  Judgements quantifiable More easily made about choose criteria that assess employees performance  Production performance excellence.  general factor touchdowns  Number of (effectiveness)  Number of units  Criteria are typically classified in one of two ways  specific factors produced  Sales quantity of work  Objective  quality of work  Tenure/Turnover  Subjective  voluntariness  Note: More complex jobs requirefunctionality for  more criteria  Absenteeism effective evaluation  Accidents  Theft
  • 16. Illegal Criteria  Title VII of the 1964 Civil Rights Act prohibits using selection practices that have an unequal impact on members of a different:  Race  Color  Sex  Religion  National Origin
  • 17. Types of Illegal Discrimination  Disparate Treatment (Opportunities)  Discrimination decisions based on one of five prohibited categories  Disparate Impact (Outcomes)  Illegal discrimination is any practice (without a business justification) that has unequal consequences for members of protected groups.  Roger Parloff, Fortune senior editor:  Though disparate treatment and disparate impact cases are both aimed at eradicating the same thing, there is potential tension between them.  The goal of disparate treatment cases is to guarantee every worker equal opportunity, but not equal outcomes.  The focus of disparate impact cases is on equal outcomes.  If one pursues equal outcomes too single-mindedly, one can compromise the principle of equal opportunity by inducing the use of quotas.
  • 18. Determining Disparate Impact  The 4/5thsapplicants 100 male Rule 50 female applicants  Disparate impact occurs if the selection ratio for any minority group is less than 4/5ths of the* selection ratio 20 males selected 50 .16 = 8 of the majority group 20/100 = .20 At least 8 females should be selected .20 * 4/5ths(.80) = .16 At least 16% of people from minority group should be selected using a given procedure.
  • 19. Summary  Criteria  Reliable and valid predictors of job performance.  All criteria suffer from:  Deficiency  Contamination  Criteria typically classified as:  Objective  Subjective  These labels can be misleading  There are several illegal criteria  There are two types of illegal discrimination  Disparate treatment  Disparate impact
  • 21. Our Textbook: Definition • Job analysis – A formal procedure by w/c the content of a job is defined in terms of tasks performed and human qualifications needed to perform the job. – Harvey (1991) definition: the collection of data describing observable job behaviors performed by workers, including both what is accomplished as well as what technologies are employed to accomplish the end results, and verifiable characteristics of the job environment w/ w/c workers interact, including physical , mechanical, social, and informational elements. – A procedure useful in identifying the criteria or performance dimensions of job.
  • 22. What Is Job Analysis? • Job analysis is the method for describing jobs and/ or the human attributes necessary to perform them – The procedure must be systematic – A job is broken into smaller units – The analysis results in some written product, either electronic or on paper – Job analysis techniques can be used to collect information that job oriented or person oriented, depending on the purpose of the job analyst • The Job-oriented Approach – Provides information about the nature of tasks does on the job • Describes common features that cut across tasks that provide a picture of what people do on a job
  • 23. What Is Job Analysis? – Tasks can be divided into a hierarchy in which higher-level descriptions are broken down into smaller pieces of the job – Levine (1983) divides the major functions of job into 4 levels of specificity: • 1. Duty 2. Tasks 3. Activity 4. Element – Duty is a major component of a job » Accomplished by performing one or more associated tasks – Task is a complete piece of work that accomplishes some particular objective – Task can be divided into activities which are the individual parts that make up the task – To accomplish this activity, a number of very specific actions, or elements are involved – Contain a great deal of very specific information about what happens on a particular job – The level of job actions produces a long and detailed report
  • 24. What Is Job Analysis? • The Person-Oriented Approach – Description of the attributes, characteristics or KSAOs necessary for a person to perform a particular job successfully – KSAOs are the knowledge, skills, abilities and other personal characteristics necessary for a job • First 3 characteristics mainly on job performance itself • Other relate to job adjustment and satisfaction • Knowledge is what a person needs to know to do a particular job • Skill is what a person is able to do an the job • Ability is a person’s aptitude or capability to do job tasks or learn to do job tasks • Other personal characteristics relevant to the job that is not covered by the other three – KSAO is an attribute or characteristic that a person needs in order to do a particular task or tasks
  • 25. Purposes of Job Analysis? • Career Development – Career ladder- a progression of position is established for individuals who acquire the necessary skills and maintain good job performance – Not everyone climbs to the top of the ladder • Limited opportunities for promotion and inability to achieve the necessary KSAOs – Job analysis provide a picture of the KSAO requirements for jobs at each level of career ladder • Legal Issues – Laws prohibiting discriminatory employment practices, especially in the hiring of employees – Job analysis provides a list of relevant KSAOs that can be used as the basis for hiring in place of irrelevant personal characteristics – Legal concept in US employment is that of essential function, which is an action that must be done on a job, especially deciding whether to hire a person with a disability
  • 26. Purposes of Job Analysis? – The nonessntial function ia an action that might be done occasionally, but is not important for a person in that position to do – Job analysis is used to identify essential functions and KSAOs and thus can help ensure that decision affecting people are based on personal factors that are job relevant – When KSAOs are derived from a properly conducted job analysis, employer actions based on those KSAOs are likely to be legal • Performance Appraisal – A well-designed performance appraisal system will be used on a job analysis – Job-oriented analysis provides a list of the major components of a job, which can be used as dimensions for performance evaluation – The behavior-focused performance appraisal methods are based on a job analysis
  • 27. Purposes of Job Analysis? – Critical incidents that represent different levels of job performance, from outstanding to poor • The good incident would describe something a person did that worked well • Selection – Person-oriented job analysis should be the first step in the design of an employee- selection system – KSAOs for a job are identified, procedures can be chosen to determine how well job applications fit the requirements for the job – A person-oriented job analysis produces a list of KSAOs for a particular job • Expected to have at the time of hiring • Characteristics that will be developed on the job through experience and training • Training – KSAOs that applicants do not have when they apply for a position are areas for training after they are hired
  • 28. Purposes of Job Analysis? – Training program is based on a through analysis of the KSAO requirements for a job – Training efforts might be directed if the characteristics can be acquired • Research – An additional use of job analysis information is in research – Determine the role of job requirements or task characteristics in organizational phenomena – Ranging from employee motivation and performance to health and safety
  • 29. Sources of Job Analysis Info? • Who provides the information? – SME (Subject Matter Experts) – Job analysis information comes from one of four sources: a. Job analysts c. Supervisors b. Job incumbents d. Trained observers – Job analysts and trained observes actually do the job or spend time observing employees doing job and translate those experiences into a job analysis – Incumbents and supervisors are considered subject-matter experts, people with detailed knowledge about the content and requirements of their own jobs or the jobs that they supervise
  • 30. Sources of Job Analysis Info? • How do people provide job analysis information? – Perform Job • Benefits: – The job analyst can perform the tasks as an employee would or under simulated conditions – The analyst gains insight into the nature of the tasks and how they interrelate – Provides an apperception for the context in which people do their jobs • Not often used: – Experiencing the job by doing it can be costly and time-consuming – Some jobs are dangerous, particularly for an inexperienced person – Dose not clearly indicate that tasks can differ among employees with the same job title – Observe • Collect information about a job is to observe people doing it • Observing employees can give insights into the context in which job tasks are performed • It can also be expensive and time-consuming
  • 31. Sources of Job Analysis Info? – Interview • Interviewing subject-matter experts who are familiar with the job • Interviews are carried out by job analysts or trained interviewers • Used to generate listed of all tasks and activities done by everyone who has the same job title • Other tasks might be performed by every employee, but only on race occasions – Questionnaire • Most efficient means of collecting job analysis information • No other technique can provide as much information about jobs with as little effort on the part of the job analyst – Multiple methods • Often used so that the limitations of one are offset by the strengths of another
  • 32. Methods Job Analysis? • Job Components Inventory (JCI) – Allows for the simultaneous assessment of the job requirements and person’s KSAOs – The inventory includes KSAOs for both jobs and individuals – 5 components of job features are represented: • Use of tool and equipment • Perceptual and physical requirements • Mathematics • Communication • Decision making and responsibility • Functional Job Analysis – Provides both a description of a job and scores in several dimensions for the job and potential workers – Procedure can be used to make comparisons among jobs
  • 33. Methods Job Analysis? • Occupational Information Network – Is a computer-based resource for job-related information on approximately 1,100 groups of jobs sharing common characteristics – Occupation characteristics deal with other kinds of information are concerned with characteristic of job tasks – Look up a particular job and get a description and detailed information about 6 domains • Position Analysis Questionnaire – Contains 189 items dealing with the task requirements or elements of jobs – The elements of the PAQ are general and allow comparisons of different jobs on a common set of dimensions or KSAOs
  • 34. Methods Job Analysis? – Cover a wide variety of task requirements • The inputting and processing of information • The use of equipment and tools • General body movement • Interpersonal interaction • Work context – PAQ generates a standard list of KSAOs, jobs can be compared on their KSAO requirements • Task inventions – Is a questionnaire that contains a list of specific tasks that might be done on the job that is being analyzed – Rating might be made on dimensions: • Amount of time spent doing the task • Critically of the task for doing a good job • Difficulty of learning the task • Important of the task
  • 35. Methods Job Analysis? • Combination Job Analysis Method (C-JAM) – Both interviews and questionnaires to collect information about KSAOs and tasks – Produces a detailed picture of the KSAOs for a job and the task performed • Choosing a Job Analysis Method – Job analysis experts to rate the effectiveness of seven job analysis methods for 11 purposes – Choice of method requires consideration of several factors, including cost and purpose
  • 36. Our Textbook: Job Analysis Procedure Job Family CLERICAL Job Secretary Receptionist Data Entry Person 1: Person 2: Person 3: Person 4: Person 5: Person 6: Position Task A, B, C Task A, B, C Task D, E, F Task D, E, F Task G, H, I Task G, H, I A. Types D. Answers G. Enters data correspondence telephone H. Updates files Task B. Schedule meetings E. Greets Visitors I. Reconciles C. Takes dictation F. Maintains register statements
  • 37. Our Textbook: Job Analysis Procedure • Task Oriented Procedure – A procedure or set of operations in job analysis designed to identify important or frequently performed tasks as a means of understanding the work performed. • Functional Job Analysis – A method of job analysis that describes the content of jobs in terms of PEOPLE, DATA, THINGS. • Worker-oriented procedure – A procedure or set of operations in the job analysis designed to identify important or frequently utilized human attributes as a means of understanding the work performed. The use of KSAOs.
  • 38. Our Textbook: Job Analysis Collection of Information • Interviews (SMEs) • Direct Observation • Questionnaires or inventories • Taxonomy • Position Analysis Questionnaire • Occupational Information Network
  • 39. Reliability and Validity of Job Analysis Information • Reliability – Test-retest reliabilities ranged from 0.68 to 0.90 – Reasonably consistent in their job analysis rating when they repeated them over time – Correlations among rating of different people ranged from 0.46 to 0.79 • Validity – The best evidence for the validity of job analysis comes from studies that compared different methods or sources information – Job analysis ratings might be less valid than I/O psychologists usually assume – Need to improve job analysis procedures, the various methods are important tools used by I/O psychologists
  • 40. Choosing Predictors of Job Performance  When selecting new employees, I/O psychologists use criteria that will identify effective on-the-job performance Performance = (KSA)*Motivation – Situational Constraints  Performance is a function of the following:  Knowledge  Skills  Abilities  Motivation  Situational Constraints
  • 41. Job Analysis  Describes:  the tasks that are performed  type of work  tools used  working conditions  human qualities (KSAOs or competencies) needed to perform the work  Tells us what tasks people do and the knowledge, skills and abilities they need to accomplish those tasks.
  • 42. Purposes of Job Analysis  Recruiting  Career development  What does it take to move up?  Legal defense  Essential functions: What tasks must be done?  Performance appraisal  Selection  What sorts of people should we hire?  Training  What knowledge and skills are needed?  Research
  • 43. Job-Oriented Job Analysis  Job components (for a carpenter)  Duty: construct houses  Task: build kitchen cabinets  Activity: assemble cabinets  Element: drill holes
  • 44. Person-Oriented Job Analysis  KSAO’s (for a carpenter)  Knowledge: Have information to do a task  Skill: Practiced act or behavior.  Ability: Stable capacity to do task.  Other personal characteristics: personality, interests, etc.
  • 45. Examples Of KSAOs For Different Occupations Job Knowledge Skill Ability Other Personal Characteristics Lawyer Constitutional Writing clearly Communica- Willingness to rights tion work long hours Nurse Surgical Drawing blood Remain calm Lack of procedures in a crisis squeamishness in the sight of blood Plumber Pipe design Soldering Hand-eye Willingness to joints coordination get dirty Police Knowledge of Writing clearly Vigilence Willingness to Officer legal arrest risk personal procedures safety
  • 46. Hiring the Best  Job: College Professor  What are the major duties of a college professor?  What tasks are performed to complete each duty  Develop a set of KSAO’s necessary for these tasks.  should be useable for recruiting and evaluating  Challenges?  What other information would you want? How would you get it?
  • 47. Data Collection Approaches  Questionnaire Who do you collect data  diaries from?  Interview  critical incidents Subject Matter Experts  Observation -incumbent  Analyst does work -supervisor -co-worker
  • 48. Occasions for Formal Job Analysis  Major Restructuring  afterdramatic growth  downsizing  new positions  Large Selection Procedure  Dramatic changes in technology  Passage of Time
  • 50. Job Evaluation • Refers to a family of quantitative techniques that used to determine the salary levels of jobs • Job evaluation determines are relative salaries for different jobs by mathematically combining job information • Point method – First, a panel determines the compensable factors for the job – Second, a panel judges the degree to which each job has each compensable factor • Quantitative scale so that each job has each compensable factor – Third, the points for the factors are summed for each job – Fourth and final, the plot the actual salaries for each job against the point totals for each job – The point system is just one of many different job evaluation methods
  • 51. Job Evaluation • Comparable Worth – Used to demonstrate pay discrimination against women – Means that different but comparable jobs should be paid the same • Held predominantly by women contribution as much to the organization as jobs held primarily by men, the salaries for the jobs should be the same – Using the mathematical procedures to calculate how much adjustment each of the underpaid jobs should receive • Might undervalue lower-paid predominantly women-held jobs and overvalue the higher-paid, predominantly men-held jobs
  • 52. Future Issues and Challenges • Job analysis is one of the most frequently used tools of practicing I/O psychologists – Concerned with developing new methods rather than with the validity of old methods • Rater training is another area of possible research – Better understanding of how people make their ratings would suggest useful ways of training raters • Increased call for organizations to keep their employee actions, such as promotions and selection – Ensured that decisions about whom to hire or promote will be based on the KSAOs for a job • Electronic tools in conducting job analysis – More accurate picture of the time spent in various activities • More focus on describing competencies rather than on what are often minimum KSAO requirements found in a typical job analysis
  • 53. Our Textbook: Job Evaluation • Job Evaluation – A procedure for assessing the relative value of jobs in an organization for the purpose of establishing levels of compensation. • External Equity – A theoretical concept that is the basis for using wage and salary surveys in establishing compensation rate.
  • 54. Our Textbook: Job Evaluation • Internal Equity – A theoretical concept that is the basis for using job evaluation in establishing compensation rate. • Compensable Factor – A dimension of work used to assess the relative value of a job for determining compensation rates. – In practice: Effort, Skills, responsibility, working condition – Others: Know-how, problem solving, accountability, additional compensable elements
  • 55. Our Textbook: Job Performance Criteria • Objective Performance Criteria – A set of factors used to assess job performance that are (relatively) objective or factual in character. • Subjective Performance Criteria – A set of factors used to assess job performance that are product of someone’s (e.g. supervisor, peer, customer) subjective rating of these factors.
  • 56. Our Textbook: 8 MAJOR Job Performance Criteria 1. Production 2. Sales 3. Tenure or Turnover 4. Absenteeism 5. Accidents 6. Theft 7. Counterproductive Workplace Behaviors 8. Customer-Service Behavior
  • 58. Objectives • To increase your understanding of psych testing and its use in the workplace, including: – The benefits of using psych testing – How psych tests can be most effectively used in the selection and development process – The types of tests available – The limitations of psych tests
  • 59. • What is testing? • Why do we have so many tests? • What are the pros and cons to testing? • How can we use testing to improve . . .? • What types of tests do we take?
  • 60. What is the cost of a bad hire? • Scenario – You have interviewed your preferred candidate. He/she looks good on paper, interviews well and seems to fit the role requirements. • You have been looking to fill the role for a while and are keen to make a placement. BUT • This role has high exposure in the organisation, managing a large customer focused project. • You have been unsuccessful in finding the right candidate until now, the project is experiencing delays which is ultimately costing you money. • The candidate looks good and you choose not to invest additional cost and time into psych testing. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 61. Possible Outcomes • Best case scenario – Candidate comes on board, fits in well with the team, project is a roaring success and you get promoted. • Worst case scenario – Candidate comes on board, has a number of behavioural issues that emerge in relation to their management of others, management of clients, management of the project which were not obvious in the interview. Candidate leaves abruptly. Company loses money. Project gets shelved, you get fired. So, what is the cost of a bad hire? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 62. What is the cost of a bad hire? • Direct costs – advertising, engaging recruitment agency • Indirect costs – time spent assessing resumes, interviewing, training new employee – Loss of IP – payouts? – Performance lag time. What if you could minimise these costs overall by using psych testing? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 63. Client Testimonials • Case 1: – Client was taking on a new employee who looked fantastic on paper and interviewed well, and decided not to put them through a psych test. Candidate lasted 6 weeks. • Case 2: – Client was made aware of a candidate’s vulnerabilities for a particular role through psych testing, but decided to proceed with offering the candidate the role regardless. Candidate’s vulnerabilities emerged on the job, and they were managed out of the organisation within three months. • Case 3: – Client reported that the strengths and development opportunities identified by the psych test were true of the individual in the role 6 months later. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 64. How can you afford to not use psych testing as part of your selection and development process? Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 65. Benefits of using psych testing in the recruitment process • Adds rigour to the entire recruitment process – Psych tests will return the same results if a candidate takes the test now and in 6 months time. They are reliable. – Psych tests have been demonstrated to predict on the job performance. – Psych tests are a valid measure of behaviour, they measure what they purport to measure - on the job performance. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 66. Benefits of using psych testing in the recruitment process • Provides a methodology for predicting performance against key competencies – Competencies refer to a set of behaviours required to successfully perform job tasks. – Psych tests are designed to objectively measure candidate’s behaviour in relation to the key competencies of the role. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 67. Benefits of using psych testing in the recruitment process • Provides a measure of performance and potential – Performance refers to past behaviours as measured by interviews, references checks and resumes. – Potential refers to a candidate’s capacity to perform on the job and develop skills. – Although they can be measured separately, we recommend the combination of performance and potential which allows you to take a more holistic assessment approach to understanding the candidate’s fit for the role. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 68. Below the Line • Assesses Knowledge, Skills, Abilities and Other (KSAOs) • People are hard to read: Using psych testing is about getting to the “below the line” assets such as motives, attitudes, drivers • Psych testing can also be used in support of “gut feel,” to inform decisions. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 69. Benefits of using psych testing in the recruitment process • Assesses a wide range of job relevant skills and behaviours – learning & cognitive style preferences – emotional intelligence – personal & leadership style – team skills – sales skills – customer service skills – motivation – Microsoft Office skills – IT programming – values – derailers Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 70. Benefits of using psych testing in the recruitment process • Is resource effective –for volume recruitment eg. Graduates – Eg. Online abilities can save time and money in screening a large amount of candidates in an objective manner. Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 71. What psych tests are available? • Abilities (verbal, numerical, abstract) • Personality or work style preferences • Sales behaviours/preferences • Customer service • Motivation • Computer software skills • Or any other assessments you can think of! Sept 2009 © Copyright 2009 Psylutions Pty Ltd. Commercial in Confidence.
  • 72. Psychological Testing • A psychological test is a standardized measure of a sample of a person’s behavior that is used to measure the individual differences that exist among people.
  • 73. Types of Psychological Testing • There are two types of Psychological tests. –Mental Ability tests –Personality tests
  • 74. Why use tests? • Psychological tests are used in research, however, most serve a practical purpose.
  • 75. Mental Ability Tests • Includes three subcategories. –Intelligence tests –Aptitude tests –Achievement tests
  • 76. Intelligence tests • Measure general mental abilities. They are intended to measure intellectual potential.
  • 77. Examples • Emily is four years old. Her big sister Amy is three times as old as Emily. How old will Amy be when she is twice as old as Emily? • WOLF is to FLOW as 8526 is to: 2856 - 6258 - 5862 - 5682 - 6852
  • 78. Examples • Hanger is to closet as tree is to: Branch - Bushes - Forest - Ground - Nest • What would be the next number in this series? 15 ... 12 ... 13 ... 10 ... 11 ... 8 ... ?
  • 79. Aptitude tests • Assess talent for specific kinds of learning. (clerical speed, mechanical reasoning, etc.)
  • 80. Examples • Are You a Self-Starter? • Climbing the ladder would bring a load of responsibility and pressure that I wouldn't want to carry. • If my boss or supervisor told me I were being promoted, the fact that they had so much confidence in my abilities would:
  • 81. Achievement tests • Gauge a person’s mastery and knowledge of various subjects
  • 82. Examples • Who was the 43rd President of the United States? • What is 5x6 divided by 2? • How many branches of Government exist in the U.S.?
  • 83. Personality Tests • Measure aspects of personality, including motives, interests, values, and attitudes.
  • 84. Examples • Do you become upset when. . ? • Do you feel like you lose control when. .? • Are you happy when . . ?
  • 85. In our TextBook • Speed Test vs. Power Test • Individual Test vs. Group Test • Pen & Paper Test vs. Performance Test
  • 86. Test Design • In order for a test to be accurate, it must meet the three standards below. – Standardization – Validity – Reliability
  • 87. Standardization • Standardization refers to the uniform procedures used in administrating and scoring a test. • Test norms: information used to rank scores in relation to other scores on the test. • Can you think of examples
  • 88. Validity • Examples • What psychologist • Refers to the promoted ability of a test introspection? • Who developed the to measure four mechanisms for what it was dreaming? designed to • What school of psychology does measure. Skinner belong to?
  • 89. Validity Construct Validity • Degree to w/c a test is accurate and faithful measure of the construct it purports to measure. Criterion-related Validity • The degree to w/c a test forecasts or is statistically related to a criterion.
  • 90. Validity Validity Coefficient • A statistical index that reveals the degree of association between two variables. Often used in the context of prediction. Content Validity • The degree to w/c subject matter experts agree that the items in a test are a representative sample of the domain of knowledge the test purports to measure.
  • 91. Validity Face Validity • The appearance that items in a test are appropriate for the intended use of the test by the individuals who take the test.
  • 92. Reliability • Example • Reliability • You take a personality refers to the test and are scored as measurement “assertive”. Three weeks later you take consistency of a the same test and are test (or other scored as “passive”. A drastic change is techniques). probably a result of an unreliable test.
  • 93. Testing Reliability Test-retest –Comparing subjects’ scores on two administrations of a test. Correlation Coefficient –A numerical index of the degree of relationship (-1, +1)
  • 94. Testing Reliability Equivalent-form –Reveals the equivalence of test scores between two versions or forms of the test. Internal-consistency –Reveals the homogeneity of the items comprising a test.
  • 95. Testing Reliability Inter-rater –Reveals the degree of agreement among the assessments of two or more raters.
  • 98. Think! • Why do we have so many tests? • How can we use testing to improve . . .? • How does psychological testing apply to school, careers, sports, etc?
  • 99. Ethical Standards • Invasion of Privacy – a condition associated w/ testing pertaining to asking of questions on a test that are unrelated to the test’s intent or are inherently intrusive to the test taker. • Confidentiality - a condition associated w/ testing pertaining to w/c parties have access to test results.
  • 100. Test Content (Major types of construct) • Intelligence Test • Mechanical Aptitude Test • Sensory/Motor Ability Test • Personality Inventories • Integrity Test • Physical Abilities Test • Multiple-Aptitude Test Batteries • Computerized Adaptive Testing
  • 101. Other methods • Interviews (Unstructured vs. Structured) • Situational Interviews (Experience based vs situational questions) • Work Samples • Situational Exercise • Biographical Information • Letter of Recommendation • Drug Testing
  • 102. Controversy The use of the following test… • Polygraphy or Lie Detection • Graphology • Emotional Intelligence
  • 103. Four major standard in selecting a test • Validity • Fairness • Applicability • Cost
  • 104. By the way… • What is the difference between psych testing and psych assessment or evaluation? • What are the general reasons of the use of psychological tests?