Transcript Ch07 - mnsu.edu

Chapter Seven
Measurement and
Decision-Making
Issues in Selection
Chapter Outline
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Statistical Methods in Selection
Reliability
Validity
Decision Making in Selection
Utility of a Selection System
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7–2
The Selection Process
• Measurement
– Ensuring that selection tests are reliable
and valid
• Decision making
– Combining information about a person to
make hiring decision
• Evaluation
– Making sure hiring decisions increase firm
efficiency and profitability
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7–3
Statistical Methods in Selection
• Correlation Analysis
– Degree of linear relationship between
variables
– Commonly measured by the Pearson
product moment correlation coefficient
• Regression Analysis
– Best fitting line equation
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7–4
Reliability
• Consistency of measurement
• Systematic Error versus Random Error
• Methods of Measuring Reliability
– Test-Retest
– Interrater Reliability
– Internal Consistency
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7–5
Validity
• Content Validity
– Are items a representative sample
– Based on job analysis
– Determined by judgment of job experts
– Lawshe method
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7–6
Validity (cont’d)
• Criterion-Related Validity – does a
selection test adequately predict an
outcome
– Concurrent Validation
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Current employees
Predictor and criterion measured at same time
Problem = representativeness of sample
Problem = restriction of range
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7–7
Validity (cont’d)
• Predictive Validation
– Job applicants
– Predictor measured (time 1)
– Applicants hired without predictor influence
– Criterion measured (time 2)
– Problem = sample size needed
– Problem = time between T1 and T2
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7–8
Special Concerns in Validity
• Test Fairness
– Mean differences in test scores
– Equitable treatment
– Differential prediction
– Differential validity
• Validity Generalization
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7–9
Decision Making in Selection
• Additive Models
– Higher score = better score
– Compensatory model
• Multiple Cutoff
– Minimum score for each test
– Non-compensatory model
• Multiple Hurdle
– Sequential testing
– Minimum score for each test
– Non-compensatory model
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7–10
Decision Making (cont’d)
• Profile Matching
– Ideal pattern of scores
• Adjusting Test Scores of Minority Group
Members
– In most cases illegal
– Fixed bands
– Sliding bands
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7–11
Utility of a Selection System
• Efficiency of Selection
• Types of selection decisions
– Quadrant A: True-Positive Decisions
– Quadrant B: False-Negative Decisions
– Quadrant C: True-Negative Decisions
– Quadrant D: False-Positive Decisions
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7–12
Utility (cont’d)
• Selection Efficiency Is Affected By:
– Validity
– Selection Ratio
– Base Rate of Success
• Taylor-Russell Tables
– Standard Deviation of Performance in
Dollars
– Costs Associated with Selection
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7–13
Review
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Statistical Methods in Selection
Reliability
Validity
Decision Making in Selection
Utility of a Selection System
Copyright © Houghton Mifflin Company. All rights reserved.
7–14