Chapter 7 Foundations of Selection

CHAPTER 7
FOUNDATIONS OF SELECTION
CHAPTER OVERVIEW
Sample blunders made by job applicants during the interview process introduce the
chapter. The importance of using a series of job-related tools to select good employees
is emphasized as application forms, various types of tests, interviews, background
investigations and physical exams are discussed. Procedures for the selection of
individuals for self-managed teams are discussed. The chapter then explains reliability,
validity, and cut scores. It concludes with advice to students on how to conduct
themselves in an interview.
Additional Features of This Chapter
Exhibit 7-1 summarizes the flow of the selection process.
Diversity Issues in HRM is a guide to application forms and interviews under
The Saskatchewan Human Rights Code in Canada.
Did You Know: Remembering EEO discusses a gender discrimination claim at
Volvo involving height requirements.
The Ethical Issues in HRM segment discusses the stress interview and
whether or not it has a legitimate reason to be part of the hiring process.
Exhibit 7-2 lists conclusions reached by researchers studying interviews.
Did You Know: Interview Questions lists suggested interview questions.
U.S. Department of Justice Form I-9 is displayed in Figure 7-3.
A "Workplace Issues" segment titled "Avoiding Hiring Mistakes summarizes the
steps an employer should take to obtain important information about candidates
and also addresses practices to avoid.
ADDITIONAL LECTURE OR ACTIVITY SUGGESTIONS
Point out the two different perspectives that students in the HRM class are being asked
to take. On the one hand, they have been and will be job applicants, and can benefit
from understanding the selection process so that they can put their best foot forward.
On the other hand, the Human Resource Management class is teaching them how to
manage the selection process as employers. While we hope that they will use reliable
and valid procedures when they make selection decisions, they still should be prepared
to respond to poorly designed interview and test questions when they are applicants.
Not all employers have taken this class!
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Ask the class how they would select employees for various businesses they are familiar
with; e.g. to work at a local fast-food restaurant; to work in the department office; to
help patrons at the library, etc. Do they rely solely on an interview? Can they design a
simple work-sample test that would be cost effective for any of these positions?
Schedule an interview practice session, during which some students take the role of
interviewers and others are interviewees for a specified job that most students would be
qualified for. Provide a job description and structured interview format, and include
time for students to receive feedback on interviewer and interviewee skills. You may
want to have students update their resumes and bring them to their interviews.
Provide students with a list of interview questions, or use questions in the textbook. In
small groups or team, have students work together to write out how they would answer
the questions for jobs they are seeking after graduation.
Assign students to interview a professional about his or her interview experience. The
student should ask the person about his or her interview experiences, such as advice,
best/worst questions, what to wear, etc. This is an excellent opportunity for students to
network.
Invite a speaker from your University Testing Center to discuss the availability of
standardized tests relevant to employment situations. Ask the speaker to provide some
sample test questions illustrating, for example, aptitude, achievement, and personality
tests.
Reliability/validity. Its easy to get bogged down with statistical concepts here. A good
way to make the topic more relevant and understandable is to start with a discussion of
classroom tests and grades. Ask students about factors which affect the reliability of
their test scores (illness, fatigue, choice of items, etc.) Discuss the validity of their
course grades for predicting future job performance. Does classroom performance
provide a content-valid sample of behaviors relevant to work performance? Are grades
good predictors of work performance? When might these predictions be more
accurate?

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CHAPTER OUTLINE AND LECTURE SUGGESTIONS

I. Introduction
A. The selection process is composed of a number of steps, each of which is
intended to provide additional information for decision making.
1. Initial screening interview
2. Completion of the application form
3. Employment tests
4. Comprehensive interview
5. Background investigation
6. Conditional job offer
7. Medical/physical exam
8. Permanent job offer.
B. Initial Screening
1. Involves screening of inquiries and screening interviews.
2. Job description information is shared along with a salary range.
C. Completing the Application Form
1. Gives a job-performance-related synopsis of what applicants have been
doing, their skills and accomplishments.
2. Legal considerations
a. Omit items which are not job-related; e.g., sex, religion, age, national
origin, race, color, and disability.
b. Typically includes statement giving employer the right to dismiss an
employee for falsifying information.
c. Asks for permission to check work references.
d. Typically includes employment-at-will statement to clarify that new
employees are not guaranteed employment.
3. Weighted application forms
a. Individual items of information are validated against performance and
turnover measures and given appropriate weights.
b. Data must be collected for each job to determine how well a particular
item (e.g., years of schooling, tenure on last job) predicts success on
target job.
4. Successful applications
a. Information collected on application forms can be highly predictive of
successful job performance.
b. Forms must be validated and continuously reviewed and updated.
c. Data should be verified through background investigations.
D. Employment Tests Estimates say 60% of all organizations use some type of
employment tests, all of which should be job-related and valid.
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1. Performance simulation tests: Tests requiring the applicant to engage in

specific job behaviors necessary for doing the job successfully. Did You
Know: Remembering EEO fits with this discussion.
2. Work sampling: Job analysis is used to develop a miniature replica of the
job on which an applicant demonstrates his/her skills.
3. Assessment centers: A series of tests and exercises, including individual
and group simulation tests, is used to assess managerial potential or other
complex sets of skills.
4. Testing in a global arena: Selection practices must be adapted to cultures
and regulations of host country.
E. Comprehensive Interviews: Interviews involve a face-to-face meeting with the
candidate to probe areas not addressed by the application form or tests. They
are a universal selection tool.
1. Interview Effectiveness
a. Interviews are the most widely used selection tool.
b. Often are expensive, inefficient, and not job-related.
c. Research has demonstrated many possible biases with decisions based
on interviews, such as those caused by prior knowledge about the
applicant, stereotypes, interviewee order.
d. Impression management, or the applicants desire to project the right
image, may skew the interview results.
e. Interviewers have short and inaccurate memories: note-taking and
videotaping may help.
2. Structured interviews, which use fixed questions designed to assess
specific job-related attributes, are more reliable and valid than unstructured
ones.
3. Interviews are best for determining organizational fit, motivation and
interpersonal skills. They are especially useful for high-turnover jobs and less
routine ones, such as managerial positions.
4. Behavioral Interviews
a. Candidates are observed not only for what they say, but how they behave
in comparison to the competencies identified for the position.
b. Past performance in similar environments and situations is a better
indicator of success than any other factor.
5. Realistic Job Preview
a. An RJP presents unfavorable as well as favorable information about the
job to applicants.
b. May include brochures, films, tours, work sampling, or verbal statements
that realistically portray the job.
c. Research supports the theory that RJPs reduce turnover without lowering
acceptance rates.
F. Background Investigation: Verify information from the application form
1. Typical information verified includes former employers, previous job
performance, education, legal status to work, credit references and criminal
records.
2. Exhibit 7-3 is the U.S. Department of Justice I-9.
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3. Concept of qualified privilege asserts that employers may discuss

employees with prospective employers without fear of reprisal as long as the
discussion is about job-related documented facts.
4. Some studies suggest that one-third of all applicants exaggerate their
backgrounds or experiences. A good predictor of future behavior is an
individuals past behavior.
5. Methods:
a. Internal investigation: HRM department checks former employers,
personal references and possibly credit sources.
b. External investigation: Uses a reference-checking firm which may
obtain more information, while complying with privacy rights.
c. Documentation, including who called, questions asked, information
obtained/not obtained is important in case an employers hiring decision is
later challenged.
G. Conditional Job Offers: Offers of employment made contingent upon
successful completion of background check, physical/medical exam, drug test,
etc. May only use job-related information to make a hiring decision.
H. Medical/Physical Examination
1. Should be used only to determine if the individual can comply with the
essential functions of the job.
2. Americans with Disabilities Act requires that exams be given only after
conditional job offer is made.
I. Job Offers
1. Actual hiring decision generally made by the department manager, although
the offer is often made by HR for administrative purposes.
2. Candidates not hired deserve the courtesy of prompt notification.
II. The Comprehensive Approach
A. Some employers use a comprehensive selection approach, putting applicants
through all the steps in the selection process before making a decision.
B. The comprehensive approach assesses both strengths and weaknesses and is
considered more realistic.
C. Ethical Issues in HRM explores the Stress Interview.
D. Exhibit 7-2 explores research conclusions about interviewing.
III. Now Its Up to the Candidate
A. The candidate now has to decide, based on the information provided by the
company, including the realistic job preview, whether this is the job for him or her.
B. Applicants who are not hired this time will still form an impression about the
company. Management should assure the selection process leaves them with a
favorable impression of the company.
IV. Selection for Self-Managed Teams
A. If teams are given management responsibilities, it makes sense for them to
select their own members.
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B. Team members bring to the selection process varied experiences and

backgrounds.
C. Team members need training in selection and interviewing techniques so that
they do not violate legal guidelines and to help them make good decisions.
V. Key Elements for Successful Predictors: Reliability, validity, and cut scores can
all help predict which applicants will be successful on the job.
Key terms:
Reliability: The ability of the selection tool to measure an attribute consistently.
Validity: The relationship between scores on a selection tool and a relevant
criterion, such as job performance. In other words, validity indicates how well a
selection tool predicts job performance. There are three specific types of
validity: content, construct, and criterion-related.
Content validity: The degree to which the content of the test, as a sample,
represents situations on the job.
Construct validity: The degree to which a particular trait is related to
successful performance on the job.
Criterion-related validity: The degree to which a particular selection device
accurately predicts the important elements of work behavior. There are two
ways to establish criterion-related validity: predictive validity or concurrent
validity.
Predictive validity uses selection test scores of applicants to compare with their
future job performance.
Concurrent validity is determined by correlating the test scores of current
employees with measures of their job performance.
Validity Analysis: Correlation coefficients (validity coefficients) ranging from +1
to 1 summarize the statistical relationship between an individuals test score
and his/her job performance.
Cut Scores and Their Impact on Hiring: Cut scores on a selection device can
be determined by validity studies. Applicants scoring below the cut score are
predicted to be unsuccessful on the job and are rejected. (See Exhibits 7-5 and
7-6.)
Validity Generalization: This is a situation where a test may be valid for
screening applicants for a variety of jobs and performance factors across many
occupations.
VI. Selection from a Global Perspective
A. Selection criteria for international assignments includes such factors as interest
in working overseas, ability to relate to different cultures and environments, and
supportiveness of the candidates family (family situation factor).
B. Women executives have done well abroad in Asia and Latin America, despite
past reluctance to assign them to these countries.
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VII.Final Thoughts: Excelling at the Interview

Interviews play a critical role in the hiring process. Suggestions for making your
interviews as an applicant successful are:
Do some homework on the company.
Get a good nights rest the night before.
Dress appropriately.
Arrive for the interview a few minutes early.
Use a firm handshake.
Maintain good eye contact.
Take the opportunity to have practice interviews.
Thank the interviewer at the end of the interview and follow up with a thank you
note.
DEMONSTRATING COMPREHENSION: Questions for Review

1.

Describe the eight-step selection process.

The eight-step process consists of initial screening interview, completion of the
application form, employment tests, comprehensive interview, background
investigation, conditional job offer, physical or medical examination, and the
permanent job offer.

2.

What is meant by a reliable and valid selection process?

A reliable selection tool will give you consistent results; e.g., different
interviewers will agree on their evaluations; two tests measuring the same skill
will give you similar results. A valid tool predicts who will perform well on the job.
Some tests are valid because they adequately sample job-related skills (e.g., a
work sample); some are valid because they are statistically related to measures
of work performance (e.g., # of years of schooling may predict tenure on the job).
Job-related selection tools are much more likely to be reliable and valid.

3.

What is a legal employee selection process? How does that differ from an
illegal one?
Legal selection tools should not demonstrate adverse impact (see Chapter 3). If
a test does have adverse impact, employers must be prepared to show that the
test is job-related and a valid predictor of job performance and that there is not
another valid test that could be substituted. An illegal selection process would
screen out otherwise qualified applicants for an invalid reason.

4.

What is a weighted application form? How does it work?

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An organization that uses a weighted application form pays more attention to

some of the items on that form than to others when applications are evaluated.
For instance, education may be weighted more heavily than experience for
certain jobs. Weighted applications are useful in that through statistical
techniques, linkage can be determined between certain relevant information and
the prediction of job success.
The process is developed over a period of time. Application forms are retained
for a predetermined period. Then, they are analyzed to see if some items are
more strongly correlated with excellent (or unacceptable) job performance than
are others.
5.

Contrast work samples with the assessment center.

Work samples require the applicant to perform a small segment of the job.
These are best suited for repetitive, routine jobs with visible outcomes. For
instance, a grocery store clerk might be required to stock shelves for a period of
time.
Assessment centers include simulations of complex tasks that are performed on
the job. Managerial skills are best sampled with an assessment center, since
individuals often are promoted to managerial jobs before they have the
opportunity to demonstrate the relevant skills.
Work samples take a few minutes. Assessment centers take days.
Work samples are usually evaluated by one supervisor. Assessment centers are
usually evaluated by teams of trained observers.
Work samples can be done on location. Assessment centers require a separate
facility.
Work samples are usually completed on one applicant at a time. Assessment
centers are usually performed on groups of applicants at the same time.

6.

What are the major problems of the interview as a selection device? What
can HRM do to reduce some of these problems?
Interviews are often used as a selection device, but achieve low marks for
reliability and validity. Interviews can be made more effective with several
techniques:
1.
2.
3.
4.
5.

Structure the interview.

Train interviewers.
Provide the interviewer with detailed job information.
Standardize interview evaluation forms.
Take notes.
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Interviews should be used as part of the selection process, not alone. Also, if
several people interview a candidate and compare their interviews, results are
more reliable and valid.
7.

What effect should a realistic job preview have on a new hire's attitude and
behavior?
A realistic job preview helps minimize surprises for the new hire, increasing the
comfort level and decreasing ambiguity and uncertainty in the early stages of
work. Also, if the first impression that a company makes on a new employee is
one of being honest, that stays with the employee, increasing the employee's
level of commitment. Employees are more satisfied with their jobs if they have
had realistic job previews, resulting in lower turnover.

8.

Why should HRM conduct a background investigation?

Unfortunately, applicants often are not completely honest on resumes and
application forms. It is important to check relevant facts in an applicant's
background, such as educational degrees, number of years of experience, and
job-related driving and criminal records. Background checks verify information
provided by the candidate, and also alert employers to potential negligent hiring
issues.

9.

Define the concepts of reliability and validity. What are the three types of
validity? Why are we concerned about reliability and validity?
Reliability is confidence that an indicator will measure the same thing every time.
Validity is the confidence that what is stated as measured is actually measured.
For instance, measuring height with a yardstick is more valid than measuring
weight with a yardstick.
There are three types of validity important in the selection and recruiting phases
of human resource management. Content validity is the degree to which the
content of the test represents the actual work situation. For example, a typing
test has high content validity for a typist. Construct validity refers to the degree
to which a particular trait is related to successful job performance. Honesty
would be important for a bank teller. Criterion-related validity is the degree to
which a particular selection device accurately predicts the important elements of
work.
Human resources professionals are concerned with validity because, legally,
employment tests must be shown to be relevant to the job for which a person is
hired, as are other selection criteria. For example, in the Griggs vs. Duke Power
case, educational level was found not to be a valid indicator of performance for
the job Griggs applied for.

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LINKING CONCEPTS TO PRACTICE: Discussion Questions

1.

What do you think of realistic job previews? Would you be more likely to
choose a position where recruiters emphasized only the positive aspects
of the job?
Students should recognize that recruiters are generally going to emphasize the
positive, and that there are many benefits to finding out as much information as
possible before accepting a job offer. Students can take an active role in
ensuring their own realistic job previews by asking lots of questions and also
taking the initiative to find out more about the company. Possible resources
include the company's Web page, alumni from your school who work with the
company and information interviews with other current employees. It's better to
enter a job with accurate expectations, than to be disappointed later when the
job or employer doesn't meet your needs. Ask for specifics (number of hours
worked, types of job assignments, etc.) rather than generalities, such as whether
it's a "good" company to work for.

2.

"Because of the law regarding employment questions, application forms

provide limited information. Accordingly, they should not be used." Do
you agree or disagree with this statement? Explain.
Agree. Frequently, many specific items are not legal on the employment
application. If a firm finds that their form is a waste of paper and time, then it
should probably be discontinued.
Disagree. For many firms, the application form is useful. If you design a form
which is job-related, and asks for legal, factual information about applicants
educational and work histories, you can develop a reliable and valid method for
scoring the applications. Especially for organizations that have developed
weighted application forms, the use is high. Further, with high unemployment
and downsizing, application forms give ready access to an applicant pool,
should business pick up. Some organizations have found the application to be
useful in checking the provided information for accuracy and completeness.

3.

"Even though interviews have been widely criticized, they are heavily
used." Discuss why this selection device still rates very highly when it is
known that it can provide unreliable information.
There are several reasons that interviews are still rated very highly. Many
interviewers and managers think that interviews are invalid for other people, but
not for themselves. Most employers want to talk to applicants face-to-face, and
many believe that they are good judges of people. Some people recognize the
limitations of the interview and use it to supplement other information. In
organizations where a dominant culture assures success for only certain types of
employee, interviews can be helpful in assessing the candidates personality
fit. If interviewers use these techniques (structure the interview; train
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interviewers; provide the interviewer with detailed job information; standardize

interview evaluation forms; and, take notes) then the interview can be a very
useful selection device.
4.

When hiring a member of a team, each team member should have equal
say in who is hired. Do you agree or disagree. Explain.
Agree. It is very important to the success of the team that the various team
members can work together harmoniously. Each member of the team should
have an equal opportunity to express his or her opinion about the suitability of
an applicant. Workers empowered to hire their coworkers bring to the selection
process varied experiences and backgrounds. This better enables them to
assess applicants skills in their field of expertise.
CASE APPLICATION 7-A: TIMING OF THE JOB OFFER

CASE SUMMARY
American Airlines began a major recruiting effort in 2005. To expedite the
process and address marketplace competition for candidates, successful
candidates were given conditional job offers that required a background
investigation, medical exam, and passing a drug test. Three candidates were
found for be HIV+ after the conditional job offer and their offers were rescinded.
The candidates sued. The first court decision sided with the company. The
second court decision sided with the candidates, stating that American Airlines
had violated the ADA. The main problem for American Airlines was the timing of
the conditional items following the initial offer. While the company stated the
offer was conditional, the court disagreed and the case went to trial.
1.

Do you believe American Airlines has the right to rescind a

conditional job offer? Why?
According to the courts, American Airlines did not approach the situation
correctly. However, employers do have the right to rescind job offers.

2.

Is the fact that they didnt follow their standard hiring process a problem
here? Explain.
According to the second court, this was indeed the problem. The court stated
American should have made the conditional offer only after all non-medical
factors had been evaluated, which was their normal process. The deviation
made the decision to rescind the offer questionable.

3.

Do you believe American Airlines has the right to not hire someone who is
HIV+? Defend your position.
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Student response may vary here.

Make sure the students have a solid understanding of current legislation about
HIV and ADA. Individuals with HIV are considered disabled and protected by the
ADA. Information is available at www.ada.gov.
CASE APPLICATION 7-B: TEAM FUN!
CASE SUMMARY
Tony has worked hard and gotten large applicant pools for the positions in the
new store. Now comes the screening process. How does he legally select the
best folks for their new employees?
1.

Devise a screening mechanism for each job category.

Job descriptions and job requirements should have been established for each
position to be filled. Tony should first look at the experience and education of
the applicants versus the job requirements and eliminate those that do not meet
the requirements. He may want to look for supervisory experience for the
managers position. Math skills would probably be important for the cashiers.
Custodial experience would be a logical requirement for the cleanup crew.
Previous sales experience would be relevant for the sales representatives.
Warehouse experience would be beneficial for the stockroom employees.

2.

What kinds of performance simulation tests would be appropriate?

Performance simulation tests require applicants to engage in specific behaviors
necessary for doing the job successfully. For the sales reps, Tony could ask
them to do a sample sales presentation. The cashiers could be asked to scan
merchandise, make change, and complete the transaction. Manager applicants
could be asked to work through an in basket and indicate how they would handle
each item. Stockroom personnel might be asked to operate a forklift, stack
merchandise, or check merchandise against an invoice. The cleanup crew
applicants might be given a small area to sweep, mop, dust, or otherwise clean.

3.

Set up an interview protocol for each job category.

There are several different types of interviews. Tony should decide what type of
interview is appropriate for each job category. The traditional interview involves
a one-on-one encounter between the interviewer and the applicant. This
approach would probably be best for the cashiers, cleanup, and stockroom
applicants. A panel interview, one in which a group of people interview the
applicant, should work well for the sales reps as obviously they will be dealing
with people of many varied backgrounds. A stress interview is designed to
create a difficult environment in which the applicant is put to the test to assess
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his or her confidence levels. This would be a good assessment tool for
applicants for the store managers position.
4.

Should Bobby select the store manager himself? Should Bobby select all
the other employees?
Bobby should select the store manager. But he might also want to involve Tony,
Kenny, and Norton in the interview process (panel interview) so that he can get
their opinions, too. If time permits, he should wait to hire the other employees
until the new manager can participate in the process.

5.

If you want Tony to try again with background checks and drug testing,
prepare a carefully worded statement for him to present to Kenny and
Norton. If you dont think these steps are desirable, explain your position.
There are a number of issues that should be included in a statement that
supports the use of background checks. One is that background checks are a
critical component in avoiding negligent hiring lawsuits. Using background
checks to help assure a good fit in the hiring decision is cost-effective. Job
searches are expensive. Tony should also include information about third party
firms that can be hired to handle the background checks for companies. Kenny
and Norton seem to care about their employees and Tony should point out that
employees will appreciate concern for their safety exhibited by being careful
about who is brought into the workforce. Drug testing of applicants will also help
assure good, safe hiring decisions.
WORKING WITH A TEAM: PREPARING FOR THE INTERVIEW

OVERVIEW
Students, using the job description written for a Benefits Manager (chapter 5)
and the ad written for Chapter 6, are now ready to develop a list of interview
questions. In small groups, the students compare questions and reach a
consensus on the questions theyd ask.
SUGGESTIONS/VARIATIONS
Assign student teams to develop their own interview guide and rating form. You
might also want them to develop a reference checking form and a checklist for a
realistic job preview. Students can be asked to present their forms in class, and
critique each others ideas.
Discuss the factors that encourage and discourage line managers from using the
policies and forms that are developed by the Human Resource Department.

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