Mgmt 441 Staffing

1
Welcome!

• Mgmt 441 Staffing
• Prof. Howard Miller

2
Staffing Function

• Among several human resource functions
• Benefits
• Compensation
• Safety
• Labor Relations
• Training

3
Staffing . . .

• Involves getting people in, or out, of a company
• Well concentrate on the getting people in part

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Staffing has 2 main purposes

• Get the best talent for the firm at the price
  we can offer
• Conform to national, state and local regulations
  concerning staffing practice, or in short keep
  it legal

5
How to Staff?

• Derive demand for labor
• Update job requirement information
• Identify knowledge, skills and abilities required
  for success on job
• Develop measures of job-related KSAs
• Recruit from relevant labor markets
• Screen using valid tests
• Make offer, provide orientation to accepts

6
Staffing Project Steps

• Choose job to study
• Find real setting to perform job analysis
• Perform job analysis
• Develop job description, job specification
• Find/develop tests to measure job specifications
• Identify Relevant labor markets
• Define recruiting methods
• Spell out hiring process to client in full detail

7
What do you mean valid test?

• Note importance of Supreme Court case
• Watson v. Ft Worth Bank and Trust (1988)
• Supreme court states (paraphrasing)
• A test is any hurdle you have to clear to get
  a job - especially important for interviewing,
  which was at core of case
• A valid test is a hurdle that allows better
  talent to get over, while lesser talent is
  screened out

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How do we establish if a test is valid

• Note importance of The Uniform Guidelines for
  Employee Selection Procedures (1978) Uniform
  Guidelines link
• Three methods recognized by courts
• Content validation
• Criterion-related validation
• Construct validation

9
The logic of hiring validity illustrated

• Consider classic payoff matrix, which well label
  selection decision matrix in our setting.
• Good decisions result when applicants who will
  succeed are hired (true positive), and
  applicants who will not succeed are rejected
  (true negative)
• Bad decisions involve rejecting people who will
  work out (false negative), and accepting those
  who dont work out (false positive)

10
Selection Decision Matrix
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Content validation

• A logical analysis by subject matter experts
  (SMEs) of the overlap between the content of
  screening tests and the content of job
  requirements
• Note the deceptive simplicity of the requirements
  for a typist at the university

12
Criterion-related validation

• The main way its done
• 2 types Predictive Validation and Concurrent
  Validation
• Predictive uses test data from applicants, and
  job performance data from those hired
• Concurrent uses both test and performance data
  from current employees

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Construct Validation . . .

• More complex than the other two
• One has to show that measures of applicant traits
  and job performance really measure those things
  (Classic construct validation)
• AND then show trait measures correlate with job
  performance measures

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the vast majority of the time

• well be referring to concurrent,
  criterion-related validity evidence because of
  its overwhelming use

15
Valid tests mean lower error rates in hiring
decisions

• More true positives and negatives
• Fewer false positives and negatives
• Lower exposure to successful litigation
• Higher utility of the staffing function

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Research on validity tells us what works!

• Find tests that are shown to be valid
• How is this done?
• Within the concurrent, criterion-related
  validation approach, it means showing a
  significant correlation between test scores and
  job performance scores the essence of a
  concurrent validity study.

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What would such validation data look like?

• See Ma and Pa Consumer Electronics Store data
  set illustration
• Ma and Pa Consumer Electronics Data Set 1.xls

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Valid Hiring Tests

• A hiring test anything you must get through to
  get the job
• A Valid hiring test one where applicants who
  score better on the test do a better job if hired
• In criterion-related empirical test validation,
  it is one where there is a significant
  correlation between hiring test scores and job
  performance scores

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Empirical validation

• Obtain a representative sample of people
• Have them take the hiring test(s), and measure
  their job performance
• Compute the statistical correlation of hiring
  test scores and job performance scores
• Compute the statistical significance of the
  sample correlation
• If significant, cross-validate in new sample
• If correlation remains significant, put test(s)
  into use

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Some key statistical concepts

• Mean the average score for a group of people
• Standard Deviation the average variability
  around the average score for a group of people
• Correlation a number that reveals the degree
  of linear association between hiring test scores
  and job performance scores

21
Correlation properties

• Correlation is notated with lower case r
• It can range in value from -1.00 to 1.00
• r0 means zero correlation, no linear
  association between the test (x) and job
  performance (y) thats not happy
• r1.00 (or r -1.00) means there is a perfect
  association of hiring test and job performance -
  doesnt happen in reality, tho wed love it if
  it did!
• Correlations from real samples RARELY exceed
  values of r.50

22
More on correlation

• Correlation can be used to summarize the
  pattern in a 2-variable scatterplot, like the
  hiring test (x axis) versus job performance (y
  axis) scatterplot
• In this application, correlation is a special
  case of linear regression using a straight line
  to summarize whats happening in a data set
• Plot interview score against job performance in
  the Ma and Pa data set

23
Statistical analysis of interviews in relation to
monthly sales

• Compute the correlation of hiring test scores
  with job performance scores
• Compute the regression of job performance scores
  (Y) on hiring test scores (X)

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Things to do

• Review material covered, so you ace the quiz next
  week
• Read the legal chapter in GFB
• Read the Uniform Guidelines
• Find a company/organization where you can perform
  job analysis on real job