Part 5 Staffing Activities: Employment

Chapter 11: Decision Making

Learning Objectives for This Chapter

Be able to interpret validity coefficients Estimate adverse impact and utility of selection systems Learn about methods for combining multiple predictors Establish hiring standards and cut scores Evaluate various methods of making a final selection choice Understand the roles of various decision makers in the staffing process Recognize the importance of diversity concerns in the staffing process
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Choice of Assessment Method

Validity Coefficient

Face Validity
Correlation With Other Predictors Adverse Impact

Utility
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Validity Coefficient

Practical significance

Extent to which predictor adds value to prediction of job success Assessed by examining

Sign Magnitude

Validities above .15 are of moderate usefulness Validities above .30 are of high usefulness

Statistical significance

Assessed by probability or p values Reasonable level of significance is p < .05

Face validity
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Correlation With Other Predictors

To add value, a predictor must add to prediction of success above and beyond forecasting powers of current predictors A predictor is more useful the

Smaller its correlation with other predictors and Higher its correlation with the criterion

Predictors are likely to be highly correlated with one another when their content domain is similar
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Adverse Impact

Role of predictor

Discriminates between people in terms of the likelihood of their job success When it discriminates by screening out a disproportionate number of minorities and women,

Adverse impact exists which may result in legal problems

Issues

What if one predictor has high validity and high adverse impact? And another predictor has low validity and low adverse impact?
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Relevant Factors: Selecting the Best Weighting Scheme

Do decision makers have considerable experience and insight into selection decisions? Is managerial acceptance of the selection process important? Is there reason to believe each predictor contributes relatively equally to job success? Are there adequate resources to use involved weighting schemes? Are conditions under which multiple regression is superior satisfied?
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Ex. 11.4: Combined Model for Recruitment Manager

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Hiring Standards and Cut Scores

Issue -- What is a passing score?

Score may be a
Single score from a single predictor or Total score from multiple predictors

Description of process

Cut score - Separates applicants who advance from those who are rejected

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Exh. 11.5: Consequences of Cut Scores

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Hiring Standards and Cut Scores (continued)

Methods to determine cut scores

Minimum competency Top-down Banding

Professional guidelines

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Methods of Final Choice

Random selection

Each finalist has equal chance of being selected

Finalists are ordered from most to least desirable based on results of discretionary assessments Finalists are banded together into rank-ordered categories Hiring all acceptable candidates as they become available for open positions
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Ranking

Grouping

Ongoing hiring

Ex. 11.8: Methods of Final Choice

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Decision Makers

Role of human resource professionals

Determine process used to design and manage selection system Contribute to outcomes based on initial assessment methods Provide input regarding who receives job offers
Determine who is selected for employment Provide input regarding process issues Provide input regarding selection procedures and who gets hired, especially in team approaches
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Role of managers

Role of employees

Legal Issues

Legal issue of importance in decision making

Cut scores or hiring standards

Uniform Guidelines on Employee Selection Procedures (UGESP)

If no adverse impact, guidelines are silent on cut scores If adverse impact occurs, guidelines become applicable

Choices among finalists

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