Ch. 5 Personal Decisions Flashcards
1
Q
A Model of Personnel Decisions
A
- SIOP outlines principles of selection: goal is fair and accurate results
http: //www.siop.org/_principles/principles.pdf - Linkage between predictors and criterion is crucial step
- This linkage is accomplished through methods of statistical analysis
- The better the linkage, the more accurate the personnel decisions
2
Q
Strategy
A
- How an organization seeks to accomplish its goals
- An organization’s strategy will influence the amount of money it will spend on human resources
- Fast food industry has 300% turnover and low level of training needed
- A 10% turnover in medical field is considered too high, so they will spend more money on human resources
3
Q
Talent acquisition
A
- Recent term to reflect the shift from wanting people to do a job to wanting people to adapt with the changing needs of the organization
4
Q
Recruitment
A
- Attracting and keeping competent employees is critical to a successful organization
- Organizations can expect to pay about $1,000 to recruit an hourly wage worker, $7,000 to recruit a yearly salaried worker, and $23,000 to recruit an executive level employee
- Costs: Advertising (paper media, radio and television, job fairs, online, travel, hosting applicants while they’re there)
For higher level positions, possibly use a search firm that will expect payment of possibly 50% of the first-year salary of the person they find - Importance of recruiting varies in proportion to how much organization cares about hiring good talent
Depending on the position, any of the below strategies might be used:
- Help wanted ad in the window or in the newspaper (old school)
- Advertise on professional organization listservs
- Advertise through social media – Twitter, Facebook, LinkedIn
- Post on company website or other job search websites
- Employee referral program
- College recruiters (for entry-level positions)
- Employment agencies – both for temp and higher level searches
5
Q
“Realistic Job Preview” or RJP
A
- An accurate picture of the job helps you find people who actually want that and are qualified for it (stems directly from your work analysis)
- Also increases later job satisfaction and decreases turnover
- This RJP needs to be conveyed through all stages of the process
- Recruitment materials, interview, company website
Make sure employee can talk to various different people at the interview and ask questions
6
Q
Predictor validity
A
- Specifically, I am talking about the strength of the validity coefficient (how well does the predictor relate to the criterion) – typically .30 to .50
- Will you establish a predictor cutoff?
That point at which you say a score is good enough or “passing”
7
Q
Selection ratio
A
- The proportion of people who will be hired out of the applicant pool
- The smaller the selection ratio, the greater the value of the predictor
8
Q
Personnel Selection – With Cutoff
A
- If the predictor has done it’s job, the average criterion score of the accepted applicants should be higher than the average of rejected applicants
- If there is no correlation between correlation and criterion, using a predictor cutoff for selection won’t predict successful applicants any better than chance.
9
Q
Cutoff Scores: Too High vs. Too Low
A
- Too high and people who would be successful employees could fail
- Too low and people who would not be successful employees could pass
- Decision on which side to error on may depend on the job
10
Q
Cuttoff Scores: Three suggestions
A
- Process of setting cutoff scores should start in work analysis
- When possible, data should be used to determine cutoff
- Cutoff scores should be high enough to ensure minimum standards of job performance are met
11
Q
Base Rate of Success
A
- the percentage of current employees who perform their jobs successfully (as determined by a criteria cutoff defined by management)
- If base rate is 50%, your selection process only needs to yield new employees that perform at that rate or better on average to be successful
- If base rate is 100%, there is no way you could improve upon this ideal situation
12
Q
Selection Ratio
A
X Hired / X Applicants
13
Q
Selection Decision
A
A = True Positive B = True Negative C = False Negative D = False Positive
14
Q
Selection utility
A
- A measure of the usefulness or quality of the selection procedure
- One way to calculate – Taylor & Russell Model (1939)
If you know the base rate of success and the validity coefficient, you can figure out a selection ratio that will maintain or exceed your base rate of success
If you know any two of the three components, you can know the third - Your book says utility is a concept reflecting the economic value (expressed in monetary terms) of making personnel decisions
- Other utility functions take into consideration cost per hire (Cronbach & Gleser, 1965)
15
Q
Validity Generalization
A
- refers to a predictor’s validity from one validation study being able to spread or “generalize to” other jobs or contexts
- In the extreme case, a predictor could be validated for one job in one context (i.e., clerical work in the army), and then be used as a predictor for all other jobs
- Meta-analyses have revealed the consistent relationship between cognitive ability and job performance across a variety of occupations (and conscientiousness)
- Thus, some researchers might be comfortable with validity generalization for certain predictors
- However, when employers are asked to defend their selection processes in a court of law, validity generalization arguments have not fared very well
