Selection, part 1

1. Selection, part 1 OS352 HRM Fisher Oct. 7, 2004

2. Agenda • SAP Case Study • Impact of legal environment on selection process • How do strategy and culture affect selection? • Basic characteristics of selection tools

3. SAP Case Study • Looks at North Country Cabinet Corporation in detail • Will use the same case in Marketing, Operations, and HR classes • Read case study to give you context for Exercise 2 • Evaluate recruiting instruments

4. Legal Requirements • Must follow requirements of Civil Rights Act, ADA, etc. • Selection procedures cannot address • Race, gender, disabilities, age • BFOQ exceptions • Pre-employment medical tests • Drug testing

5. Review: Disparate treatment vs. disparate impact • What is disparate treatment? • What is disparate impact? • 4/5ths rule (from EEOC guidelines) • How do these concepts affect the selection process?

6. Four-fifths rule #Hired Group # of Applicants Selection Rate 134 47.5% Whites 282 10 27.8% 36 Blacks 44 43.1% Hispanics 102 170 44.2% Men 385 Women 18 51.4% 35 Is there evidence of adverse impact? Against which group(s)? Data source: Nkomo, S., Fottler, M., & AcAfee, R.B. (2000) Applications in Human Resource Management.

7. Griggs v. Duke Power(1971 U.S. Supreme Court) • Duke Power required a high school diploma and passing score on two general aptitude tests • Black applicants were disproportionately excluded • Duke Power was unable to demonstrate the these requirements were job related and consistent with business necessity • Not necessary to perform most jobs in the plant • Covered by Civil Rights Act, 1964

8. Selection criteria • We want to select people who will succeed • Performance • Turnover • Potential • How do we determine the “right” criteria? What should we be measuring? • Use the job analysis information to determine critical KSAOs • Knowledge/skills that are easy to learn should generally not be used as selection criteria

9. Consequences of Selection Decisions • Which is worse – false positive or false negative? • If false positive is worse, selection criteria should be more stringent + False Positive True Positive Selection Decision - False Negative True Negative + - On-the-job Performance

10. Strategy and selection • Borders vs. Barnes and Noble • Borders: widest assortment of titles, diversity of thought, salespeople who are excited about the books • Barnes & Noble: efficient customer service, low prices, salespeople who are experienced in selling • How would the selection criteria differ at these stores? Source: Gale, S.F. (2003). The Bookstore Battle. Retrieved on August 29, 2003 from www.workforce.com/section/06/feature/23/49/48/index_printer.html

11. What is a selection test? • Any device used to determine an applicant’s appropriateness for the job • Written tests (ability, personality, knowledge) • Interviews • Application blanks • Assessment centers • All selection tests are subject to Uniform Guidelines

12. Reliability • Error in a measure • Test retest (time) • Parallel forms (items) • Coefficient alpha (items) – easiest to assess • Inter-rater (raters) • Reliability coefficients range from 0-1 • Acceptable is .7 or higher

13. Validity • Are we measuring the right thing? • Not a characteristic of a test, but how the test is used • Content validity • Based on results of thorough job analysis • Relies on judgment • Criterion-related validity • Demonstrate that the test predicts performance • Uses statistical techniques • Face validity – test taker perceptions of relevance

14. For next class • Topic: More on selection • Benefits and drawbacks of different selection tools • Writing interview questions • Current issues in selection • Will also start preparing for Interviewing Workshop on Oct. 14