chapter seven measurement and decision-making issues in selection

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


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


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


Reliability

• Consistency of measurement

• Systematic Error versus Random Error

• Methods of Measuring Reliability– Test-Retest– Interrater Reliability– Internal Consistency


Validity

• Content Validity– Are items a representative sample– Based on job analysis– Determined by judgment of job experts– Lawshe method


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 = representativeness of sample• Problem = restriction of range


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


Special Concerns in Validity

• Test Fairness– Mean differences in test scores– Equitable treatment– Differential prediction– Differential validity

• Validity Generalization


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


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


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


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


Review

• Statistical Methods in Selection

• Reliability

• Validity

• Decision Making in Selection

• Utility of a Selection System

chapter seven measurement and decision-making issues in selection

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