Banding

“The basic premise behind banding is consistent with psychometric theory. Small differences in test scores might reasonably be due to measurement error, and a case can be made on the basis of classical measurement theory for a selection system that ignores such small differences, or at least does not allow small differences in test scores to trump all other consideration in ranking individuals in hiring.” (p. 82).

“There is legitimate scientific justification for the position that

small differences in test scores might not imply

meaningful differences in either the construct measured by the test or in future job performance.” (p. 85).

From the Scientific Affairs Committee of the Society for Industrial Organizational Psychology (Report, 1994)

Banding Types

Traditional (e.g., bands determined based on trend analysis, expert opinion) 100 - 90 89 - 80 79 - 70 SED (standard error of the difference) Using tests of statistical significance to determine test bands considered equal Consideration of the SEM of the test (standard deviation, test reliability, and level of confidence desired)

Banding (cont.) SED Banding Types Fixed ..

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Both use the top score to establish the top of the band All those from the band are selected before those from the lower band Sliding ..

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Bands slide down after each person is removed from the top (bands re established)

Banding (cont.) Purposes of Banding ---

a) Fairness

(e.g., test scores not significantly different are best treated as equivalent) Some loss of predictive power (as compared to top down selection)

b) Increase diversity

Greater diversity is obtained with the use of sliding bands and points for minority status

Banding (cont.) Legal Status (e.g., Is banding a form of score adjustment?; Is it a legitimate part of an affirmative action plan?) Affirmative Action Plans (Important criteria to be legal) -- a) Temporary in nature b) Result of past discrimination c) Not trample the rights of non-minorities d) Voluntary

Banding (cont.) • Legal if selection from bands is based on a

variety

of factors, including minority preference (sole use of minority preference is generally ruled illegal) • Upheld regardless of part of consent decree, court order, or voluntary AA plans (as long as selection from bands not based solely on minority preference)

Organizational Implications ---

• Educate applicants, employees on rationale of banding (e.g., what it is, how it works) • Explanation of AA (e.g., purposes, not a quota) • Written policy describing the selection/promotion procedure