Effective Employee Selection and Performance Management

HR, Legal Standards, and Employment Tests

• Legal Defensibility: Ensure test content is legally defensible.
• Fair Procedures: Implement fair procedures to avoid discrimination.
• Successful Implementation: Focus on the successful implementation of the test.

Cognitive Ability Tests in Hiring

Advantages

• Efficiently obtains data.
• Has good validity, making it a strong predictor of job performance and training success.
• Less expensive than customized tests, with lower administration costs.

Problems and Solutions

• Problem: Potential issues with "racial norming."
• Solution: Combine with other assessments, such as interviews and non-cognitive tests, for a more holistic view.

Combining Applicant Information

• Judgmental Composite: Judgmental and statistical data are combined in a judgmental manner. (Commonly used)
• Statistical Composite: Judgmental and statistical data are combined statistically.
• Other Methods: Includes pure judgmental/statistical approaches, trait rating (judgmental data combined statistically), and profile interpretation (statistical data combined judgmentally).

The Employment Interview Process

Process Best Practices

• Ask relevant follow-up questions.
• Engage in thorough note-taking.
• Allow time for questions from candidates.

Content and Advantages

• Content: Questions should be based on job analysis, be job-related, and focus on behavior rather than opinions.
• Advantages: An effective process obtains relevant data, ensures consistency and fairness, and offers legal protection by being less discriminatory.

Question Types

• Situational Questions: Based on hypothetical scenarios.
• Behavioral Questions: Based on past experiences.

Group Decision Making in Hiring

Advantages

• Groups are generally better at problem-solving.
• Reduces the impact of individual bias and improves fairness.

Potential Problems

• Groupthink: Can lead to organizational faults.
• Other issues include a lack of formal procedures, time pressure, and conformity.

The Purpose and Process of Appraisals

Key Purposes

• Administrative decisions
• Employee evaluation
• Professional development

The Process

• Identification of key performance areas.
• Measurement of performance.
• Management of performance outcomes.

Key Concepts in Hiring Decisions

• Satisficing: Choosing the first acceptable candidate rather than the optimal one.
• Organizational Fit: Assessing how well a candidate aligns with the company culture.
• False Positive: Hiring an applicant who turns out to be a poor choice.
• False Negative: Rejecting an applicant who would have been a good hire.

Understanding and Measuring Job Performance

• Performance should be linked to the organization's mission.
• A selection system's goal is to predict future job performance.
• Measurements can be behavioral, performance-based, or attitudinal.
• Judgmental data can be relative (e.g., rank order) or absolute (e.g., a supervisor's direct judgment).

Methods for Performance Measurement

• Trait-Based Measures: Use consistent tools, such as a 1-5 rating scale, to evaluate employee traits.
• Behavior and Outcome-Based Measures: Assess the results achieved by workers, such as sales figures or absenteeism rates.

Factors Affecting Performance Data Reliability

• Organizational Policies: The level of management commitment to the appraisal process.
• Organizational Politics and Climate: The internal environment can influence appraisal outcomes.
• Team Performance: The performance of the team can impact individual assessments.

How to Improve Performance Data Reliability

• Implement 360-degree feedback systems.
• Provide comprehensive training for appraisers.