Applied Psychology in Human Resource Management International Edition, 7E Wayne F Cascio Aguinis Sol

Type:

Solution Manual

Resource:

Applied Psychology in Human Resource Management International Edition

Edition:

7th Edition

Author(s):

Wayne F. Cascio Herman Aguinis

Instructor’s Manual Elizabeth Freeman University of South Carolina Upstate

Applied Psychology in Human Resource Management 7e

Wayne Cascio Herman Aguinis

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology

Overview Chapter one introduces the interdisciplinary relationships between the fields of psychology and human resource management. Highlights include descriptions of the specialty areas of industrial organizational psychology, personnel psychology, and applied psychology. Also included is an explanation of the inter-relationship between human resource management and applied psychology.

Discussions clarify the previous contributions of these specialty areas to the understanding of organizational behaviors and the future challenges for organizational successes. For example, historically, applied psychology focused on the identification, assessment, and development of predictive individual behaviors. Future needs for applied psychology expertise reflect the pressures associated with continued globalization of the world of work. Applied psychologists work in conjunction with human resource professionals to implement and manage research findings within the ethical, legal, and moral considerations for the individuals involved.

Annotated Outline I.

At a Glance a. Organizations are i. Are part of daily lives ii. Vary by size and function and jobs iii. Include individuals who vary by aptitudes, abilities, and interests iv. Depend on HRM to blend individual interests and organization objectives b. Information Age changes job perceptions i. Job security less relevant than employment security ii. Training and development extremely important iii. Demographic changes impact recruitment and staffing iv. Cultural diversity is key component c. Assumptions of a free society i. Qualifications are sole determinants for job competition 1. Not gender

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2. Not race 3. Not age

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology 4. Not ethnicity, culture 5. Not color ii. Applied Psychology contributes to wise, humane use of human resources

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Pervasiveness of Organizations a. Introduction i. Everyone’s life is touched by organizations 1. School 2. Church 3. Sports 4. Service Groups 5. Military 6. Government b. Definitions of organizations i. Reflect characteristics of person providing definition ii. Some recurring elements to definitions of organization c. General definition i. People working together in division of labor to achieve common purpose ii. System of inputs, throughputs, outputs 1. Inputs – raw materials imported to organization 2. Throughput – converting raw material to finished product, service 3. Output – results of the throughputs iii. People are basic to all organizations iv. Social relationships tie people together in organizations

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d. Applied Psychology contributes to humane use human resources i. Personnel psychology, sub-field of Applied Psychology

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology 1. Studies individual differences in behavior and job performance 2. Develops methods for measurement and prediction of differences e. Differences in jobs – world of work i. Manufacture tangible products: food, automobiles, plastics, paper, textiles, glassware ii. Provision of services: legal counsel, health care, police, fire protection iii. Individuals differ in ability, aptitudes, interests, experience, skills f.

Differences in Performance i. People are expensive for organizations: recruitment, selection, placement, training ii. People differences 1. Physically – size, weight, height …

2. Cognitively – ability, aptitude, interests 3. Psychologically - personality, commitment, motivation iii. People differences lead to work differences 1. Speed 2. Quality 3. Ambition iv. Good decisions are profitable, incorrect decisions can be disastrous

g. A Utopian Ideal i. Assess individual aptitudes, abilities, personality, interests ii. Profile individual characteristics iii. Place individuals in jobs best suited per assessments iv. Real world of work not as ideal 3

v. Many individuals mismatched in jobs h. Point of View

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology i. Free societies allow every qualified person to compete for any job they are qualified ii. Society can and should be wise and humane with treatment of human resources iii. HRM professionals must be 1. Technically competent 2. Well-informed iv. Personnel psychology can improve caliber of HRM within organizations

III.

Personnel Psychology in Perspective a. Introduction i. Psychologists study people ii. Industrial Organizational psychology studies people at work iii. Questions are as important as subjects of study 1. Engineering psychology: tool and machine design, work space, information 2. Social psychology: power and influence, attitude change, group dynamics iv. Personnel psychology is subfield of industrial organizational psychology 1. Focuses on individual differences in behavior & job performance 2. Develops measurement methods to assess differences 3. Analyze and evaluate jobs 4. Design and implement recruitments 5. Screen applicants 6. Select employees 7. Train and develop employees

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8. Manage employee performance v. Personnel psychology overlaps with human resource management 1. To achieve organizational goals, HRM manages .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology a. Staffing b. Retention c. Development d. Adjustment e. Change vi. Personnel psychology does not study, HRM does study 1. Labor and compensation 2. Law 3. Organization theory 4. Industrial medicine 5. Collective bargaining 6. Employee benefits vii. Personnel psychology assists HRM with 1. Leadership development 2. Motivation 3. Optimized staffing viii. Work world changes are driving renewed interest in personnel psychology 1. Technology 2. Markets 3. Organizational design 4. Managerial and employee roles b. Changing Nature of Product and Service Markets i. Globalization 5

1. Commerce without borders 2. Interdependence business operations different geographic locations

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology 3. Just-in-time inventories 4. Nanosecond technologies 5. 24/7 culture ii. Example computer programming 1. was once highly specialized 2. is now rote and outsourceable iii. Growing ethnic and regional tensions iv. Terrorism threats v. Economic interdependence between countries vi. American ideals sought world-wide 1. Open political debates in Soviet empire 2. European countries in North American Free Trade Act 3. Democratic reform South and Central America 4. Free market entrepreneurship in southern China vii. Success depends on the people associated with each organization 1. HRM assistance needed 2. Industrial Organizational psychology assistance needed 3. Personnel Psychology assistance needed 4. Applied Psychology assistance needed viii. Impact on Jobs and Psychological Contract – Special Note 1. Job churning from 20th century will continue into 21st century 2. White- and blue-collar jobs impacted 3. Corporate down-sizing entrenched 6

4. Psychological (unwritten) contract for continuous employment lost a. Stability, predictability not guaranteed

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology b. Job-hopping typical, accepted, necessary (from 7 to 10 per career) 5. Individuals must develop own employment stability by continuous training 6. Self-reliance critical c. Effects of Technology on Organizations and People i. Millions of individual net-worked computers 1. Cellular phones 2. Personal digital assistants 3. E-mail 4. Digital data is borderless 5. Distance may be meaningless with digital infrastructure 6. Virtual offices commonplace ii. Only constant is change iii. Technically literate, continuously trained, motivated workers required iv. Workers bombarded by data, too 1. Junk mail 2. Hackers 3. Compromised privacy v. High technology puts more demands on quality workforce 1. More skills necessary 2. Higher level thinking required 3. Interruptions more costly d. Changes in the Structure and Design of Organizations 7

i. From brick and mortar to World Wide Web of Internet ii. All employees have access to all levels of information, instantaneously

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology iii. Must operate assuming constant change iv. Organize around networks not hierarchies v. Build partnerships and alliances vi. Construct technological competencies vii. Virtual, boundaryless, flexible viii. Multi-specialists required of managers and workers e. Changing Role of the Manager i. Traditional organizations 1. Management by 3-C logic a. Command – top down, one-way communication b. Control – clearly defined jobs, fragmented tasks c. Compartment – departments, units, functions 2. Information as power 3. Stability, predictability, efficiency ii. Today’s organizations’ managers 1. Respond to rapidly changing conditions 2. Are visionary, articulate 3. State and endorse values and goals 4. Implements workforce democracy a. Sharing and collaboration b. Continuous learning 5. Practice contingency leadership demands a. Path-goal theory 8

b. Normative decision theory c. Least Preferred Co-worker theory

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology 6. Employ autocratic leadership when necessary (key is knowing when and how) 7. Need to be Transformational leaders most often a. Creative b. Imaginative c. High interpersonal skills d. Understanding human behavior 8. Team-work frequent a. Teams i. Intact, identifiable social systems (small or temporary) ii. Authority to manage tasks iii. Authority to manage interpersonal processes iv. Self-management accepted b. Group work common, too i. Intact, identifiable social systems ii. Managers have authority to manage tasks iii. Managers responsible for interpersonal processes iv. Management occurs as directed by supervision 9. Workers act like managers a. Do control, plan, and inspect b. Do coach, facilitate, and mentor 10. Mangers act like workers, a. Do coach, facilitate, and mentor b. Don’t control, plan, and inspect 9 f.

Empowered Worker - No Passing Fad i. Change common to high-profile and high-tech .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology ii. Change common to unglamorous and low-tech 1. Box 1-1 Cadet Uniform Services, Now Part of Cintas Corporation 2. Redefined and empowered their drivers a. Customer Service Representatives and entrepreneurs b. Achieved increased incomes for employees c. Decreased turnover within corporation d. Increased sales for 34 consecutive years iii. Worker demographics are different 1. More women at all levels, in all occupations 2. More multi-ethnics 3. More multi-cultural 4. More older workers 5. More workers with disabilities 6. More robots 7. More contingent workers 8. Self-reliance necessary 9. Training constant 10. Team-work common 11. Adaptability required g. Implications for Organizations and Their People i. All aspects for organizations move easily except for the workforce ii. Quality workforces necessary iii. HRM increases competitive advantages when 10

1. Add benefit to production, services, decision making 2. Workforce characteristics distinguished from competitors

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology 3. Workforce skills are not easily duplicated iv. Quote from Albert Einstein, Workplace, 1993, p. 2.

1. “Everything has changed, except our way of thinking.” v. Job security has changed to employment security vi. Demographics even more important vii. Cultural diversity a necessity viii. Potential problems 1. Insecurity 2. Uncertainty 3. Stress 4. Social Friction ix. Potential benefits 1. Challenge 2. Creativity 3. Flexibility 4. Control 5. Interrelatedness IV.

Plan of the Book a. Fundamental Concepts in Applied Measurement i. Chapter 2 – Legal Requirements for Fair Employment ii. Chapter 3 – Personnel Psychology as an integrative model iii. Chapter 4 – Performance Criteria iv. Chapter 5 – Performance Management

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b. Core of Personnel Psychology i. Chapter 6 – Measurement of Individual Differences

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology ii. Chapter 7 – Validation of Measurements iii. Chapter 8 – Fairness in Employment Decisions c. Job Relevancy i. Chapter 9 – Job Analysis ii. Chapter 10 – Workforce Planning d. Staffing i. Chapter 11 – Recruitment ii. Chapter 12 – Screening iii. Chapter 13 – Decision Making for Selection iv. Chapter 14 – Managerial Selection e. Training and Development i. Chapter 15 – Training and Development Design ii. Chapter 16 – Training and Development Implementation and Measurement f.

Globalization and Ethics i. Chapter 17 – International Dimensions ii. Chapter 18 – Ethical Issues in Human Resource Management

Guide to End-of-chapter Discussion Questions 1. Why is employment security more important to most workers than job security? Pages 1 - 3 Student answers may vary but should be based on material from pages 1through 3, Implications for Organizations and Their People. Some students will have relevant personal examples to share based on their families’, caregivers’, and individual experiences.

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Today’s American workforce recognizes that they are in competition with the workforces of countries around the world. With the pressures of global competition, organizations are forced to make frequent and sometimes unplanned staffing changes. These changes include downsizing, outsourcing, hiring contingent workers, and collaborations with other organizations. With these outside the organization pressures, there also are pressures within organizations to make frequent changes in the

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology way the organizations completes their missions. These internal pressures force individual jobs to undergo frequent changes and redefinitions.

As a consequence workers recognize that there is no guarantee of the psychological contract between an employer and an employee for continuous long-term employment. With these realities of work, employees are more interested in employment security (being needed by many organizations) than in job security (working in one position for one company for a working career).

2. How have globalized product and service markets affected organizations and workers? Pages 5 - 10 Student answers should emphasize information from pages 5 through 10 from The Changing Nature of Product and Service Markets, Effects of Technology on Organizations and People, Changes in the Structure and Design of Organizations.

The globalization of products and services has led to some dramatic changes for workers, organizations, and consumers. Technological advances and improvements bring people from all over the world closer together. These changes also decrease the need for a large single workforce located in one central geographic location. Technological improvements have made some highly skilled careers become more routine reducing the need specially trained employees. This decreases the need for some employees while creating the need for other less expensive employees.

Another result of this change is the perceived loss of the psychological contract between employers and employees. Employers need their employees to be self-sufficient and multi-talented and deeply committed to the organization. Employees may feel a degree of personal job insecurity and may experience a decrease in organizational loyalty. The combined employer and employee effects keep the job market in a state of constant churning with employees constantly looking for a better positions and employers constantly looking for better employees.

Additionally, the globalization of product and service markets allows organizations and individuals to have access to greater varieties of less expensive consumable products and, in theory, less expensive services. While these changes appear to be appealing, the realities are that all organizations, workers, and individuals have been forced to recognize that globalization does not mean Americanization. Instead, globalization means that constant adaptations are required and that greater awareness of cultural differences is necessary for globalization to continue successfully.

3. Discuss some of the changes that have occurred in the perceptions that workers and organizations have about each other in light of the massive downsizing that has taken place during the past decade.

Pages 9, 10 13

Answers should draw from the perspectives presented on pages 9 and 10, Impact on Jobs and the Psychological Contract.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology While not a formal document, most employers and employees operated from a psychological contract which guaranteed employment for as long an employee desired and needed to work for an employer. Employers expected to invest in their employees’ development and employees expected to earn their continued employment. Stability and predictability were the norm for employees and employers.

With the recent massive downsizing that has occurred as a result of global competition and technological advances that have decreased the need for many highly skilled workers, employees are being forced to think more like entrepreneurs and to assume more responsibility for their continued employment. Employers are forced to hire only those individuals who contribute to immediate organizational needs instead of taking a long-range career development employment approach.

Employees must become self-sufficient and assume more responsibility for their work future.

4. How does information technology change the roles of managers and workers? Pages 6 - 9 Discussions will vary based on students’ work experiences both personal and vicarious. Most discussions will include information from pages 6 through 9, Effects of Technology on Organizations and People. Insightful students will include information from the sections Changes in the Structure and Design of Organizations, The Changing Role of the Manager, and The Empowered Worker – No Passing Fad (pages 6 -9).

The pervasive use of technologies in all companies requires that all employees be technologically literate and sophisticated, while being willing to train constantly. Additionally, companies require employees who use technologies wisely and who do not allow technological timewasters to impact their productivity. For example, employees need to know how to ignore spam, how to manage the distractions from multiple communication devices, and how to use the correct technologies for each work situation.

These technological realities change the roles of managers from being command, control, and compartmental specialists to that of coaches, mentors, and co-workers. Managers continue to be responsible for implementing organizational plans and for outcomes but their methods for achieving these expectations have changed. For employees, technologies provide greater access to more information more quickly and may allow them to work from any location rather than being restricted to an office in a building. Employees must act with greater independence and be more conscientious about completing work assignments alerting their managers and team members quickly when commitments are at risk. In summary, managers must act like traditional and non-traditional managers based on the contingencies of the situation. Employees must act like entrepreneurs while also acting like team members and, at times, traditional employees based on their contingencies, too.

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5. Describe some potential problems and opportunities presented by the changing nature of work.

Pages 9, 10 Descriptions will include the information from pages 9 through 10, Implications for Organizations and Their People, with particular attention paid to page 10’s itemized lists. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 1 - Organizations, Work, and Applied Psychology Some of the potential problems associated with the changing world of work include the need to change jobs frequently, the pressures of needing to keep technological skills current, the expectations that an employee can work from any location, the need to understand many different cultures, and increased pressures for travel. Changing jobs frequently means that individuals must understand organizational behaviors in general but learn quickly the unique aspects for each organization with whom they interact. Frequent job changes may require that employees move often. This means that employees and their families must have strong social skills for adapting to new living arrangements, too.

Feeling pressure to keep technology skills current, puts employees in the position of always being in school and implies that it is reasonable to employers to support the training both financially and through time allowed to complete the training. Being able to work from any location means that employees have to be able to concentrate, to focus, and to be organized enough to complete their work from many environments. This reality can create problems with employees giving their life enough structure to know when to “leave work” and when to be “only at work.” The need to work with many different types of people from many differing backgrounds creates problems for individuals who have not developed proficiencies with diverse co-workers and with multiple cultures. Being sensitive to differences without being discriminatory about these differences is necessary for today’s successful employees. Allowing employees to work from many locations does not exclude the need for travel.

Therefore, employees do not enjoy travel may experience increases in stress and decreases in job satisfaction when travel is frequent, mandatory, and involves significant amounts of time.

From a different perspective, these same problems will be benefits for other employees. Once individuals accept the need to change jobs frequently, many individuals embrace the challenges of new positions, enjoy the variety of experiences, and ultimately develop amazingly diverse and highly valued sets of employable skills. From a similar perspective, employees who recognize that technological changes represent progress and technological competence is highly valued, become employees that many employers want to have as a part of their organization. These individuals recognize technology as a tool for career achievement and, therefore, do not experience as much stress or difficulty adapting to new technologies. These same employees also recognize that not technologies will apply to their jobs and are better able to make smart recommendations to their employers about the adoption or advisability of passing on some technologies. Employees with this mind-set understand how to work from varying locations but also how to set limits to their work locations. These employees enjoy the freedoms of working through technology but do not allow the technological access to dictate their entire life. Many employees today are excited about and willing to take part in the increased diversification of the world of work. These same employees experience different cultures as a way to increase understanding and to build opportunities for all workers wherever they are located.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

Overview Chapter Two, The Law and Human Resource Management, begins by summarizing the organization of the American legal system by branch of government and by district courts. Next, the chapter presents the process for filing discrimination complaints against an employer through the federal courts or through the state courts. Pivotal employment laws are summarized with particular attention and focus on the more recent Civil Rights Acts, Americans with Disabilities Act, and the Family and Medical Leave Acts. Of particular interest is the formation and operation of the Equal Employment Opportunity Commission. In each section, precedence setting cases are mentioned along with brief summaries of subsequent legal decisions and human resource practices. The chapter concludes with a discussion on the ongoing status of Affirmative Action practices, challenges to these practices, and the current importance placed by human resource managers on the development of a diverse workforce.

Annotated Outline I.

At a Glance a. Legal issues of employment dominate HRM i. Employment legislation pervasive ii. Individuals motivated to correct previous wrongs b. All branches U. S. government (federal & state) active in employment law i. Legislative – House of Representatives ii. Executive - Senate iii. Judicial – Supreme and state courts Employment legislation pervasive c. Employment Opportunity protected regardless i. Race ii. Color iii. Age iv. Gender v. Religion

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vi. National Origin vii. Disability .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

d. All aspects of employment affected i. Screening ii. Recruitment iii. Selection iv. Placement v. Compensation vi. Training vii. Promotion viii. Performance management e. Industrial Organizational Psychologists and HR Professionals work i. With attorneys ii. With courts iii. Regulatory agencies iv. Serious consequences if ignored f. Affirmative Action remains work-life fact i. Public policy 1. Americans support AA ideas and reality 2. Disagreement about how to implement ii. IO Psychologists & HR Professionals provide assistance II.

The Legal System a. U. S. Constitution is first & above all courts at all levels

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i. Federal laws supersede state laws, generally provide minimum standards ii. State laws may be enacted if federal laws do not provide framework .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

iii. State courts systems may be modeled similar to federal courts b. Federal Government Organization Structure – 3 branches i. Legislative Branch 1. U. S. Congress 2. Enact laws – statutes interpreted by regulatory agencies standards ii. Executive Branch 1. U. S. Senate 2. Enforce laws iii. Judicial – Federal Courts 1. Supreme – one court with 9 judges a. One Chief Justice b. Eight Associate Justices 2. Inferior courts (lower courts) as directed by Congress a. U. S. District Courts b. Federal Trial Courts per state c. Try cases i. Between citizens of different states ii. Constitutional challenges iii. Broken Federal laws 3. Appellate Courts a. 12 Circuit or regional courts 3

b. Decisions may be appealed to Supreme Court i. Only if Supreme Court agrees .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

ii. Usually when circuit opinions differ iii. Supreme Court reviews are certiorari iv. Writ of Certiorari must be granted first v. If writ denied, circuit decision stands 4. State Courts organized or structured similarly a. State district courts lowest b. State Appellate Courts next c. State Supreme Court highest d. U. S. Supreme Court may get involved subsequently 5. Equal Employment complaints a. Start with employer b. Next i. state, local Fair Employment Practice Commissions ii. federal agencies 1. Equal Employment Opportunity Commission 2. Office of Federal Contract Compliance Programs c.

Next, state district courts

d. Next, state Appellate Courts e. Next, state Supreme Court f. Finally, U. S. Supreme Court 6. Employers advised to have complaint resolution system

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III.

Unfair Discrimination: What is it? .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

a. Definition – giving members one group unfair advantages over nonmembers i. Selection requires exclusion ii. Selection can exclude while remaining fair b. Discrimination subtle and complex i. Unequal (disparate) treatment 1) Intention to discriminate or to retaliate a) May be based on direct evidence i) Employment policies, handbooks b) May be based on circumstantial evidence – statistical trends ii) Schwager v. Sun Oil Co. of Pa. c) May be mixed-motives i) Previous practices ii) Current trends ii. Adverse impact (unintentional) discrimination 1) Identical standards 2) Limit opportunities for particular group 3) Standards unrelated to job success IV.

Legal Framework for Civil Rights Requirements A. Laws govern public and private sector employers B. Executive orders govern government contractors C. Important laws

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i.

U. S. Constitution

ii. Civil Rights Acts of 1866 & 1871 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

iii. Equal Pay Act of 1963 iv. Civil Rights Act of 1964 v. Age Discrimination Act of 1967 (& amended in 1986) vi. Immigration Reform & Control Act of 1986 vii. Americans with Disabilities Act of 1990 viii. Civil Rights Act of 1991 ix. Family and Medical Leave Act of 1993 D. Important Executive orders i. Executive Orders 11246, 11375, 11478 ii. Rehabilitation Act of 1973 iii. Uniformed Services Employment and Reemployment Right Acts of 1994 V.

The U. S. Constitution – Thirteenth and Fourteenth Amendments A. 13th prohibits slavery & involuntary servitude B. 14th guarantees equal protection of the law for all citizens

VI.

The Civil Rights Acts of 1866 and 1871 A. 1866 – right to make and enforce employment contracts, amended by CRA of 1991 B. 1871 – right to sue in federal courts C. Important case - Johnson v. Railway Express Agency (1975)

VII.

Equal Pay for Equal Work Regardless of Sex A. Equal Pay Act of 1963 – prohibits sex discrimination for wage payments i. Some exceptions 1. Seniority

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2. Merit 3. Quantity, quality production .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

4. Other differentials ii. Administered by Equal Employment Opportunity Commission B. Equal Pay for Jobs of Comparable Worth i. Documented trend - when women dominate an occupation, wages decrease ii. Are women underpaid or are the jobs worth less? iii. Comparable worth by definition requires jobs be classified by gender VIII.

Equal Employment Opportunity A. Civil Rights Act of 1964 – organized by sections or titles i. Title VII most relevant to Employment Practices, amended by CRA 1972 a. Established the Equal Employment Opportunity Commission (EEOC) ii. Requires nondiscrimination on basis of a. Race b. Color c. Religion d. Sex e. National Origin iii. Requires nondiscrimination for a. Apprenticeships b. Training c. Advertising d. Prohibits retaliation iv. Originally aimed at private employers with more than 25 employees

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v. 1972, amended to include private and public employers with > 15 employees .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

vi. Exceptions a. Private clubs b. Employers associated with American Indian Reservations c. Religious organizations vii. Federal government oversight managed by a. U. S. Office of Personnel Management b. Merit Systems Protection Board viii. Title VII also defines a. Protection from lawsuit when AAP followed b. Back-pay awards when employers found guilty of discrimination ix. Title VII allows discrimination when a. Bona Fide Occupational Qualifications (BFOQs) exist b. Seniority & merit systems exist without intent to discriminate c. Pre-employment inquiries occur to meet regulation reporting d. Professionally developed ability tests are used for decisions e. There are demographic imbalances in the geographic job area Ward Cove Packing v. Antonio, 1989 f. Veterans are involved as long as male & female veterans considered g. National security is involved IX.

Age Discrimination in Employment Act of 1967 A. Equal Employment Opportunities for those 40 and older are guaranteed B. Unless age is a relevant BFOQ

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C. Employers may offer special incentives to older workers C. Employees may waive & revoke their rights to sue .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

X.

The Immigration Reform and Control Act of 1986 A. Applies to every employer B. Must verify employee citizenship status within 3 days of hiring (I-9) forms C. When two candidates equally qualified, U. S. citizens receive legal preference D. Some amnesty rights for aliens residing continuously in the U. S. prior to 1982 E. Penalties range from $100 to $1000 per breach of law per undocumented employee

XI.

The Americans with Disabilities Act (ADA) of 1990 A. Applies to all employers with 15 or more employees B. Disabled employees must have qualifications to complete the job C. Reasonable accommodations must be made D. Expense is relevant only if it causes undue hardship for employer E. Pre-employment physicals allowed only if all applicants must complete F. Medical information must be kept separate from other work-related information G. Drug-testing rules apply H. Enforcement by i. EEOC and ii. Department of Justice and iii. Department of Transportation

XII.

Civil Rights Act of 1991 A. Allows compensatory and punitive damages i. for nonpublic employees for intentional discrimination ii. sets cap at $300,000 for guilty public employers

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B. Clarifies adverse impact and responsibilities for evidence i. Plaintiff must prove it exists by specific practice .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

ii. If plaintiff succeeds, employer bears burden of proof C. Employees of U. S. companies are protected while in foreign countries i. Unless foreign country’s laws would be violated D. Racial Harassment i. Workers are protected with regard to aspects of employment E. Consent decrees cannot be challenged by nonparticipants F. Mixed-motive Cases i. Damages determined by end results, not by intentionality G. Seniority systems can be challenged only at 3 times i. When plan adopted ii. When individual is covered by the plan iii. When a person is injured by the plan H. Race Norming and Affirmative Action i. Not legal to adjust scores based on race-related criteria ii. Court-ordered remedies supersede regardless iii. Chicago Firefighters Local 2 v. City of Chicago, 2001 I. Government employees (elected and appointed) are protected XIII.

Family and Medical Leave Act (FMLA) of 1993 A. Applies to private sector employers of 50 or more employees i. Includes part-timers working 1250 hours over 12 months (25 hours/week) ii. Mandates 12 weeks unpaid leave a. Birth

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b. Adoption c. Foster care .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

d. Care for spouse, parent, child with serious health condition e. Employee’s own health needs iii. Employers may exempt top 10% salaried employees B. 95% all U. S. companies have fewer than 50 employees C. Most employers have become more flexible with regard for family needs XIV.

Executive Orders 11246, 11375, 11478 A. Apply to federal agencies, contractors, and sub-contractors B. Have force of law C. These orders equivalent to Civil Rights Act of 1964 with 1972 amendments D. Enforced by i. Department of Labor through ii. Office of Federal Contract Compliance Programs (OFCCP)

XV.

Rehabilitation Act of 1973 A. Applies to federal contractors & subcontractors B. Pushes the active recruitment and inclusion of disabled individuals C. Equivalent to the ADA D. Enforced by the OFCCP

XVI.

Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 A. Protects employees serving in uniformed services B. Applies to public and private employers C. Must maintain benefits D. Do not have to make up difference in pay

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E. Protection lost if dishonorably discharged XVII.

Enforcement of the Laws – Regulatory Agencies .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

A. State Fair Employment Practices Commissions – 100 nationwide B. Equal Employment Opportunity Commission (EEOC) i. Five commissioners appointed by President, confirmed by Senate a. Each serves for 5 years b. No more than 3 may be from same political party ii. Enforces federal civil rights laws a. 50 field offices b. 24 district offices c. 2,800 employees iii. Typical cases resolved within 6 months, some never resolved iv. Complaints filed are increasing v. Complaint process a. First, deferred to state or local fair employment commission b. After 60 days, EEOC may begin own investigation vi. Primary purposes a. Investigate – prioritize cases by merit b. Conciliate – settle out of courts where possible c. Litigate – when necessary d. Informate – educate to prevent rather than trying to correct C. Office of Federal Contract Compliance Programs (OFCCP) i. Applies to all federal contractors and subcontractors ii. Monitors adherence to EEOC and AAP 12

iii. Reviews goals and timetables for improving EEOC and AAP practices XVIII.

Judicial Interpretation, Enforcement Decisions – General Principles .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

A. Case Law i. Legal interpretations of a general law ii. Serve as precedents not guarantees for future challenges to a law iii. Evaluates actual persons, not abstracts of persons iv. Validation requires that the “end” be measured & analyzed “before” predictions as to success are made v. Cognitive abilities, personality, motivation, and experience are valid B. Testing – Precedent Cases i. Griggs v. Duke Power Company, 1971 a. All individuals hired at same time must have same opportunities b. Employer must prove requirements related to job performance c. Professionally developed tests must be job-related d. Intentional & unintentional practices are prohibited e. Discriminatory results are the determinants of discrimination f. Job-related tests and other measures are legal and useful ii. Albemarle Paper Co. v. Moody, 1975 a. Tests must be validated for individuals affected by the decisions 1) Applicants 2) Incumbents at same level as new hires b. Tests must be based in job analyses iii. Washington v. Davis, 1976 a. Validated entry level predictions satisfy for job relevance requirements 13

b. Specified 1) Job analysis required .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

2) Relevant 3) Reliable 4) Unbiased job performance measures 5) Predict performance regardless of minority status iv. Connecticut v. Teal, 1982 a. Title VII protects individuals, not groups b. Adverse impact at any point in employment process illegal c. Cannot “make-up” by giving preferential treatments later on C. Personal History i. Background checks are permissible even if potentially discriminatory ii. Employment history may be checked iii. Experience may be checked iv. Past wage garnishments may be checked v. Previous conviction records may be checked (use only if relevant to job) a. Hyland v. Fukada, 1978 vi. While arrests may be requested, remember innocence until proven guilty D. Sex Discrimination i. May be used only if job relevant ii. Should be interpreted narrowly iii. Pregnancy does not by definition ensure special consideration iv. Sexual Harassment a. Unwelcome sexual advances 14

b. Requests for sexual favors or other conduct as condition of employment .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

c. Intimidating, hostile, offensive working environment d. Two primary types of harassment 1) Quid pro quo – I give, you give 2) Hostile environment e. Not necessary to show psychological harm f. Employers responsible regardless of knowledge of events g. Pivotal Cases 1) Meritor Savings Bank v. Vinson, 1986 2) Harris v. Forklift Systems, Inc., 1993 3) Burlington Industries, Inc. v. Ellerth, 1998 4) Faragher v. City of Boca Raton, 1998 h. Preventions 1) Statements of intolerance from CEOs 2) Definition and training as to definition of harassment 3) Complaint procedure 4) Statements of sanctions for violations 5) Record keeping 6) Follow-ups E. Age Discrimination i. Pivotal Case – Schwager v. Sun Oil Co. of Pa., 1979 ii. Organizations to study a. Woolworth, nka Foot Locker 15

b. Sun Oil Company of Pennsylvania F. English Only Rules .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

i. May be required, work involved should be considered ii. Multiple language skills considered desirable by most employers G. Seniority i. Considered fair and legal to give longer term employees preference ii. Pivotal Cases a. California Brewers Association v. Bryant, 1982 b. Firefighters Local Union No. 1784 v. Stotts, 1984 c. Wygant v. Jackson Board of Education, 1986 iii. If collective bargaining in place, union must be involved in changes H. Preferential Selection i. Reverse discrimination just as illegal as class action discrimination ii. AAPs supersede reverse discrimination effects iii. People not involved in original lawsuits may not re-open cases iv. Limited burdens on effected classes may take place v. Public & private universities may use race in admissions decisions vi. Diversity efforts are good; quotas are not good vii. Pivotal Cases a. McDonald v. Santa Fe Transportation Co., 1976 b. Gratz v. Bollinger, 2003 c. Grutter v. Bollinger, 2003

Discussion Questions 16

1. What advice would you offer to an employer that is considering an English-only rule in the workplace? Page 35 If the employer is based in an English-as-a-First Language country and if most of the employees are also English-as-a-First-Language, then I would advise the employer to consider .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management their reasons for the “English-only” rule. If their motivations include the desire to improve operations with the goals of facilitating communications and understanding in the workplace, I would advise them to proceed with the rule but to do so with empathy for individuals who would be considered English-as-a-Second-Language (ESL). For example, I would advise that a meeting be held with all employees attending at the same time. I would have the CEO and the Chief Human Resource Officer (CHRO) explain the rule, the reasons, the action plans, and the consequences for non-compliance. The meeting should allow questions and comments from all employees. The meeting should be followed up with a written letter from the CEO & the CHRO, an updated Employee Handbook, a press release, and updated information on the organization’s website. The action plans should provide on-going ESL instruction for all employees and should also include cultural and language instruction for those languages and cultures represented by the ESL employees. In other words, while the “English-only” rule is in place, the employer should strive to increase multi-cultural competencies for all employees.

This approach should reduce any perceptions of discrimination and should protect the employer from any legal actions. All employees will benefit from such an approach. Furthermore, I would advise that this practice be instituted for any locations in other countries, too. In foreign locations, the primary language may not be English, but with English as the international business language, it is a strong organizational strategy to make sure that all employees around the world are able to communicate with and to understand their fellow employees and their competitors.

2. Prepare a brief outline for the senior management of your company that illustrates the requirements and expected impact of the Family and Medical Leave Act. Pages 26, 27 Student answers may show some originality of thought with regard to potential negative and positive outcomes, but all answers should be based on information from pages 26 & 27.

I. Since we are a private sector employer and employ more than 50 individuals, we must participate in the FMLA II. Top 10% of salaried employees are not eligible for the Family and Medical Leave Act. III. Enforced by U. S. Department of Labor A. May assess fines, penalties B. If not followed, will experience 1. loss of employee confidence, 2. loss of reputation 3. difficulties recruiting and retaining quality employees 17

III. Eligible participants A. All those working fulltime .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management B. Part-time employees accumulating 1250 hours per year or averaging 25 hrs/week IV. Individual jobs or equivalent jobs must be held for participants in the FMLA V. Up to 12 weeks of unpaid leave must be granted when requested (w/in first year) for A. Birth of child B. Adoption of child C. Assuming foster care of dependent child D. Caring for spouse with serious health condition E. Caring for child with serious health condition F. Caring for parent with serious health condition G. Recovering from own serious health condition VI. With regard to paid leaves A. May offer compensatory time off when overtime is accrued B. May offer better protections than mandated by this FMLA C. Will need to offer some benefits for the top 10% as well 3. What specific steps would you recommend to a firm in order to ensure fair treatment of persons with disabilities? Pages 23 - 25 Student answers should indicate mastery of information from pages 23, 24, & 25.

First, an organization should provide copies of the Americans with Disabilities Act (ADA) to employees and decision-makers and should provide training for all employees with regard to the organization’s policies and adherence to the ADA. Next, thorough job analyses should be completed to validly identify requirements for each job. Then, the physical buildings, facilities, equipment, tools, and products must be reviewed to determine where, how, and when modifications should be made. Action Plans need to be developed and shared within the organization and to appropriate authorities. Finally, the plans need to be implemented and periodically reviewed and adjusted.

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For example, plans and policies can be included in employee handbooks and posted to organization websites. Ramps can be installed. Doors can be widened. Door handles can be updated. Elevator panels can be adjusted for sound and Braille. Special desks and computer equipment can be installed. Adjustments for the need for additional absences or the need to work from other locations can be implemented. Recognized disabilities can be defined and clarified as needed. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management 4. Prepare a brief outline of an organizational policy on sexual harassment. Be sure to include grievance, counseling, and enforcement procedures. Pages 21, 32 - 34 Student answers should knowledge of information from pages 32 - 34 with information from page 21 and BFOQs a plus.

I. CEO, Board, and Employees agree to a no tolerance policy for Sexual Harassment.

II. Sexual Harassment is defined as

a. Unwelcome sexual advances b. Requests for sexual favors or other conduct as condition of employment c. Intimidating, hostile, offensive working environment III. Two primary types of harassment a. Quid pro quo – I give, you give b. Hostile environment IV. Remember! a. Not necessary to show psychological harm b. Employers responsible regardless of knowledge of events V. Policies based on pivotal cases a. Meritor Savings Bank v. Vinson, 1986 b. Harris v. Forklift Systems, Inc., 1993 c. Burlington Industries, Inc. v. Ellerth, 1998 d. Faragher v. City of Boca Raton, 1998 VI. Preventions a. Statements of intolerance from CEO, Board, & all employees 19

b. Definition and training as to definition of harassment

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

All employees must attend training, show comprehension and follow the policy c. Complaint procedure – confidential to HR Rep, acknowledged within 24 hours, resolved within 1 month d. Statements of sanctions for violations all reports treated respectfully, seriously, confidentially any employee found guilty will be terminated e. Record keeping any complaints filed in personnel records amends also filed in personnel records f. Follow-ups Person filing the complaint will receive follow-up to verify resolution 5. What guidance would you give to an employer who asks about rights and responsibilities in administering a testing program? Pages 30 - 32

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Testing program rights, responsibilities, and administration information is found on pages 30, 31, & 32. The first area I would address would be to familiarize the employer with the precedent legal cases surrounding testing issues. Then, I would confirm the currency of their job descriptions and confirm that thorough job analyses had been conducted. Next, I would confirm that the best performers’ current behaviors matched those identified in the job descriptions.

Then, I would ask for the behaviors of rising “best performers” to make sure that the organization understands the concept of predictive validity for job descriptions and employment decision. I would confirm that the employer is keeping adequate records to allow on-going validity checking for their procedures and decisions. In addition to this, I would advise periodic management training to keep their employment testing practices current. The following outline might be offered as part of the advising process.

I. Testing – Precedent Cases .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

A. Griggs v. Duke Power Company, 1971 a. All individuals hired at same time must have same opportunities b. Employer must prove requirements related to job performance c. Professionally developed tests must be job-related d. Intentional & unintentional practices are prohibited e. Discriminatory results are the determinants of discrimination f. Job-related tests and other measures are legal and useful B. Albemarle Paper Co. v. Moody, 1975 a. Tests must be validated for individuals affected by the decisions 1) Applicants 2) Incumbents at same level as new hires b. Tests must be based in job analyses C. Washington v. Davis, 1976 a. Validated entry level predictions satisfy for job relevance requirements b. Specified 1) Job analysis required 2) Relevant 3) Reliable 4) Unbiased job performance measures 5) Predict performance regardless of minority status D. Connecticut v. Teal, 1982 21

a. Title VII protects individuals, not groups b. Adverse impact at any point in employment process illegal .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 2 – The Law and Human Resource Management

c. Cannot “make-up” by giving preferential treatments later on II. General Principles for all Testing Programs A. Legal interpretations reflect a general law, specific programs may differ B. Legal interpretations serve as precedents not guarantees for future challenges to a law C. Tests should evaluate actual persons, not abstracts of persons D. Validation requires that the “end” be measured & analyzed “before” predictions as to success are made E. Cognitive abilities, personality, motivation, and experience are valid to use within testing programs

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

Overview Chapter three presents the study of organizational decision-making, specifically focusing on the decisions surrounding employment processes. Utilitarian decision-making and the concepts of cost benefits analysis begin the discussion. Subsequently, the sequential processes and primary decisions per process are discussed with special attention paid to the concepts of erroneous acceptances and erroneous rejections. The sequential processes discussed include job analysis & evaluation, workforce planning, recruitment, initial screening, selection, performance management, training and development, and organizational exit.

Annotated Outline I.

At a Glance a. Organizations as Systems i. Day-to-day operations require decisions ii. Decisions result in costs or benefits to the organization b. Utility Theory provides framework for considering each alternative’s i. Costs ii. Consequences iii. Payoffs (benefits) c. Decision consequences affect entire organizations d. Open Systems Theory improves quality of organizational decisions i. Inputs come from multiple sources ii. Process may be affected within and without the organization iii. Outputs of the decisions reach beyond the organization’s boundaries e. Personnel Psychology is an example of apples Open Systems Theory i. Job analysis and evaluation

1

ii. Workforce planning iii. Recruitment .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

iv. Initial Screening v. Selection vi. Training and development vii. Performance management viii. Organizational exit II.

Utility Theory – A Way of Thinking a. Requires decision-makers to consider all aspects for each organizational decision i. Risks ii. Costs iii. Benefits iv. Pluses v. Timing b. Utility Theory helps organizations to clarify their purposes c. Within human resource management, utility theory links i. People decisions to ii. Organizational goals d. All employment decisions have utilitarian aspects i. Must make a decision about a person ii. Must decide to take an action with this person iii. Must determine the consequences of the action iv. Must determine the results of the action

2

e. Example, from pool of applicants a test may be administered i. Applicants may be grouped by scores .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

ii. Decisions to proceed may be determined by grouping f. Another example, given a group of employees without specific skills i. Must decide whether to train or to replace ii. If decide to train, aptitude test may be administered 1. Trainees may be grouped by aptitude scores 2. Type and or speed of training must be determined a) If train too slow, some may quit b) If train too fast, some may quit or give up 3. Must decide for a given time frame, which is riskier for the organizations? iii. Given this decision-making technique, hidden costs may be disclosed. iv. Training everyone at the same speed may cost less initially but result in more expensive turnover. g. Systems Analysis considers multiple causes and effects, costs and benefits, over time.

III.

Organizations as Systems a. Definitions i. System – collection of interrelated parts, unified by design, created to achieve objective ii. Analysis – understanding impact to individuals, groups, organizations, communities, industries, nations iii. Systems thinking – 1. Seeing wholes rather than parts

3

2. Focusing on interrelationships rather than specifics 3. Looking for patterns of change .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

4. Recognizing that seemingly unrelated events have wide range impacts b. Organizations as Systems i. Classic Management Theory – an organization can make all decisions effectively without considering influences or impacts beyond the organization ii. Open Management Theory – An organization must consider many sources of input for all decisions and must consider impacts of decisions beyond the organization 1. Applies systems analysis and systems thinking 2. Considers hierarchies of systems 3. Example, from super system to sub-systems a) Economy b) Industry c) Companies d) Divisions e) Organizations f) Departments g) Groups h) Individuals 4. Example – IBM 5. Prior to personal computers, IBM did not consider foreign market competition 6. Results to IBM, more than 100,000 jobs lost, forced to re-invent itself iii. Effective organizational managers must 4

1. Scan and sense changes in outside environment 2. Bridge and manage critical boundaries, interdependencies .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

3. Develop appropriate strategies iv. Effective Human resource managers must 1. Scan and sense changes in organizational needs for human resources 2. Scan and sense changes in availabilities and sources of human resources 3. Bridge and manage boundaries within and without the organization 4. Develop, implement, and manage these needs and boundaries IV.

A Systems View of the Employment Process a. Introduction i. Employment is a process 1. Networked 2. Sequential 3. Interrelated or interdependent decisions ii. Different jobs require different recruitment, selection, training strategies iii. All phases are highly interdependent b. Job Analysis and Evaluation – fundamental building block all other decisions i. Specifies work to be done ii. Identifies skills needed iii. Documents necessary training iv. Assigns worth or monetary value for each position within organization v. Different responsibilities have different values vi. Valuation procedures must be documented and replicable

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vii. Best to have analysis and evaluations completed independent of incumbents in the position c. Workforce Planning – based on projections of organizational needs and goals .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

i. Build an inventory of existing knowledge, skills, abilities, experience ii. Forecast supply and demand of human resources 1. Internal to the organization 2. External to the organization 3. Form action plans to meet the forecasted needs iii. Develop control and evaluation procedures for the workforce plan d. Recruitment i. Begins with a request to hire from a department, person, division ii. Must answer how, where, media, other sources, when iii. Must estimate 1. Cost of recruiting – how much money is available to spend 2. Selection ratio – how many applicants before offer made e. Initial Screening – of accepted applicants, how do they compare i. Strategy I – set minimum standards, for low cost positions 1. Intellectual baselines 2. Physical abilities 3. Equipment experience ii. Strategy II – set extensive standards, for high risk positions 1. Intellectual preferences based on past performances 2. Physical abilities determined by position 3. Equipment knowledge and skill 4. Emotional abilities 6

5. Interpersonal skills 6. Managerial experiences .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

7. Financial abilities iii. Erroneous Acceptances – hiring a person 1. Who is not able or 2. Who cannot perform or 3. Who does not perform to expectations or 4. Who does not fit in the organization but 5. Who would do exceptionally well in another position 6. Costs are readily determined iv. Erroneous Rejections – passing on a potentially good hire 1. Costs are difficult to ascertain 2. Costs may be harder to bear than an erroneous acceptance f. Selection i. Occurs in the middle of the process or the central phase of placing individuals ii. Goal is to best place individual in the job or the job to persons available iii. Decisions used to hire, reject, place on waiting list iv. Must keep in mind the utilitarian aspects of these decisions 1. Interviewers’ expenses 2. Production time lost due to vacancies v. There is no one best selection procedure, must consider contingencies vi. Most expensive is not always the best method vii. Previous successes or failures can guide the selection process 7

viii. For some organizations, hiring occurs first, placement second ix. For other organizations, hiring happens because position placement is needed .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

x. After hiring, orientation occurs, and immediate training needs completed g. Training and Development i. Definition – competency – clusters of interrelated 1) Knowledge 2) Skills 3) Abilities 4). Attitudes 5). Personalities ii. All training should be matched to organizational needs iii. Training should also consider individual competency needs 1) to develop or 2) to improve iv. Training must consider utilitarian aspects 1) Hire minimal skills, what cost to develop additional skills or 2) Hire experienced, minimal training costs v. Training must also consider individual preferences and job requirements h. Performance Management i. Selection decisions involve some risk and must be analyzed for effectiveness ii. Performance management should occur after reasonable & predetermined time 1) Observable behaviors 2) Documented actions, decisions, insights, efforts 8

3) Per person, per group, per department, per job iii. Post performance management decisions include .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

1) Promotions 2) Compensation 3) Transfers 4) Disciplinary actions iv. Performance management is continuous, aims to develop & improve v. Performance appraisal 1) occurs at specified times and generally tied to compensation 2) are at heart of merit based systems 3) generally well accepted 4) generally expected as described per organization policy vi. Can minimize bias and errors through specific performance appraisal training i. Organizational Exit – happens for everyone, circumstances vary i. Voluntary 1) Retirement 2) Recruited to new organization 3) Family change ii. Involuntary 1) Layoffs a) Individual effects i) Anticipatory job loss ii) Shock 9

iii) Relief iv) Relaxation .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

v) More effort vi) Vacillation vii) Self-doubt, anger viii) Resignation, withdrawal b) Organizational effects i) Communication ii) Participation iii) Control iv) Planning v) Support 2). Termination for cause a). Individual effects i) Loss of face, embarrassment ii) Anger, hostility iii) Denial iv) Depression b). Organizational effects i) Confusion ii) Fear iii) Disagreement, decreased commitment iv) Relief, increased commitment iii. Retirements 10

1. May be per schedule, per plan a). Generally well accepted .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach

b). Can be source of continued motivation 2. May be forced or encouraged, can be accepted if a). Financial arrangements considered fair b). Handled with dignity and respect 3. Need to be considered in a). Succession plans b). Workforce plans c). Recruiting efforts d). Development efforts

Discussion Questions 1. How is Utility Theory useful as a framework for making decisions? Why must considerations of utility always be tied to the overall strategy of an organization?

Answers should be based on information from pages 39 - 43.

Utility Theory is a powerful tool for understanding decision making as it creates a conceptual structure or a sequence of thoughts with the projected goal being better quality outcomes or results. Utility Theory forces a person or persons to think through in advance what the costs and benefits will be for any given decision. Individuals practicing utilitarian decision making must identify the overall goals, the sequence of events, the priority of those events and goals, the anticipated efforts to achieve the events and goals, the associated costs for the events, the risks involved, and the potential benefits for the events. Utility theory practice supports goal-setting and can identify actions that will not yield benefits sufficient to offset the expenses.

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Within organizations, utility theory practice ties in an organization’s missions, values, and goals to the human resources necessary to carry out the goals, mission, and values of an organization. For example, an organization experiencing increased demand for existing services can apply utilitarian theory to the costs and benefits of hiring additional staff who have no experience and must be trained to the costs and benefits of hiring additional staff who do have experience, need no training but who will take longer to locate and recruit. This same organization may go through the same decisions process but come up with different actions when considering the addition of a new service which requires re-training all employees compared to the option of hiring new employees who also require training but can be hired in at lower salaries. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach 2. Describe three examples of open systems. Can you think of a closed system? Describe your thoughts on this decision. Why are organizations open systems?

Answers should be based on information from pages 41 & 42.

Three examples of open systems are on-line interactive courses, the political process, and economic development programs. An online interactive course is an example of an open system when it includes information from lecture, online discussions between students and faculty, and inclusion of information from other sources, and the explorations of other online sources. The openness could be extended by the inclusion of self-evaluation, peer evaluations, and faculty evaluation as a part of students’ course grades.

The political process is an open system because people desiring election must seek support from constituents, from community organizations, from individuals holding elected offices, staff members, and others. Once elected, politicians must be responsive to all individuals within their sphere of influence, to organizations within their sphere, and to other government offices and departments.

Economic development programs must function as open systems to be effective. These programs draw input from the available local workforce, employers seeking additional growth opportunities, existing laws supporting development, and projections of required worker skill sets. The implementation of their plans impact individuals locally, regionally, nationally, and potentially globally.

An example of a closed system would be an online credit application. When a person completes a form, submits their information, and then receives instant approval or rejection.

There is only one person, the information processing, and then one person (at least in theory) receives the decision.

Organizations should be considered open systems because their plans and actions need to reflect multiple sources of input. Their ability to provide staff to support the plans must consider multiple sources of employees, the various jobs to be completed, the impacts that completing the jobs will have, their ability to sustain the product production or services provided, their legal obligations, their competition with other organizations, and their environmental impacts.

3. Why is it useful to view the employment process as a network of sequential, interdependent decisions?

Answers should be based on information from pages 43 - 49 and the chart from page 44.

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Individuals are not hired at random. Jobs are not created based on a whim.

Organizations do not function without purpose. Instead, after an organization determines its goals and its procedures to accomplish these goals, then the organization will determine how many people are needed to complete and to support the attainment of the goals. The procedures become jobs. The jobs require people. Hence the employment process is based on .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach the sequential decision making process that flows from organizational strategic planning, to job analysis, to workforce planning, to recruitment, to screening, to selection, to placement, to development, to performance management and back to strategic planning for repetition of the employment process. At each decision-making point, a yes, no, do over, try again, or release (reject) action must be implemented. The results of the actions must be evaluated and the process repeated.

4. What is the difference between an erroneous acceptance and an erroneous rejection?

Describe situations where one or the other is more serious.

Answers should be based on information from page 46.

An erroneous acceptance occurs when an individual is hired but is not able to complete the work or does not “fit” the organization’s expectations. Another example of an erroneous acceptance occurs when a person is successful in one position within an organization, receives an assignment to another position, and then fails to complete the new responsibilities successfully. Erroneous acceptances are known and the costs can be determined. For example, an erroneous acceptance cost may include training costs, replacement costs (people, products, lost clients), legal fees, benefits expenditures, etc.

An erroneous rejection occurs when a person is turned down for a position when this person would have been very successful for the organization in this capacity. Costs associated with erroneous rejections are hard to determine but can be even more expensive for an organization should the rejected person go to work for a competitor and bring that organization phenomenal success.

5. Suppose you had to choose between “making” competent employees through training and “buying” them through selection. Which would you choose? Why? Answers should be based on information from pages 46 - 48.

My decision to “make” or to “’buy” would depend on the circumstances and the motivating factors behind the decision. For example, if my organization must upgrade information processing and improve customer services, then I would recommend that existing employees be “made” through training. Organizations have an ethical obligation to develop their employees. This investment may not result in specific profits, but the refusal to develop employees may result in decreased organizational commitment and increased voluntary turnover. My decision whether to train in-house or to send employees off-site for training would be determined by how many employees must be trained, how quickly they must be trained, the risk for the organization if training is not completed quickly, how soon the return on the training investment can be experience by the organization, and whether there are any legal risks to the organization if the training is postponed.

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If my organization was implementing a new product, providing a completely new service, or branching into a completely new area of business, then I would recommend that the organization “buy” some of the competence and to institute a mentoring/coaching program .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 3 – People, Decisions, and the Systems Approach such that the bought talent trained “made” talent. I would also recommend that “made” talent socialize the “bought” talent into the operations of the organization. The assumption here is that training existing talent would be cost prohibitive to the organization. I would present this decision to existing employees from the framework that new talents bring new opportunities and that existing talents will be given equivalent opportunities for additional successes and challenges, too.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

Overview Chapter four discusses the challenges for human resource managers with regard to the definition, measurement, and evaluation of work related behaviors. An operational definition of criterion as performance standards (both predictive and evaluative) provides the foundation for comprehending additional criteria concepts. These conceptual challenges include the static, dynamic, individual, and group criterion differences. Challenges include performance and situational criterion characteristics. Additional issues surround criterion deficiencies, contaminations, and composites. For each challenge and issue, the authors present research findings which address those topics. Finally, the authors present an effective research design model for ongoing study of criterion.

Annotated Outline I.

At a Glance 1. Criterion challenges for HRM include a. Adequacy b. Accuracy 2. Also challenging are a. Dynamics (changes) & multi-dimensionality b. Unreliability of performance c. Biases d. Relevance, sensitivity, practicality 3. Criterion development objectives a. Utility of procedures (costs, benefits) b. Understanding successful performance of jobs 4. Important focus is on composite criterion development

II.

1

Definition 1. Yardstick for performance (future success) or evaluative standards (observed success) 2. Predictions .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

a. Selection b. Placement c. Performance management 3. Evaluations a. Performance b. Attitude c. Motivation 4. Possibilities a. Output measures b. Quality measures c. Lost time d. Trainability and promotability e. Performance ratings f. Counterproductive behaviors III.

Job Performance as a Criterion 1. Performance – observed behaviors relevant to the jobs a. Doing the jobs and b. Outcomes from doing the job 2. Ultimate criterion – full domain of performance, doing and succeeding

IV.

Dimensionality of Criteria 1. Static a. Highs and lows for multiple aspects

2

b. Maximum and typical performances i. Maximum – best that person can do willingly, selectively .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

ii. Typical – the average that a person does do, habitually c. Contextual performance i. Pro-social behaviors or organizational citizenship 1. Making the environment a pleasant place to work 2. Enthusiasm, volunteerism 3. Following rules 4. Endorsing objectives ii. Dark side or antisocial behaviors, workplace deviance 1. Padding hours worked 2. Negative rumors 3. Gossiping 4. Hiding mistakes d. Task performance i. Transforming raw materials into product ii. Providing services iii. Distribution of finished products iv. Planning, coordinating, supervising 2. Dynamic or temporal dimensionality a. When should criterion measures be taken? b. Situations will impact measurements c. Interests of ratee and rater will impact measurements d. Personalities of ratee and rater will impact measurements 3

e. Performances may change in time over i. Group efforts .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

ii. Validity of coefficients (predictive accuracies for performances) iii. Rank orderings of the criterions f. Researching changes in dynamics may follow i. Changing tasks model (jobs redefined with time) ii. Changing subjects model (people who do work change over time) V.

Challenges in Criterion Development 1. Job Performance Unreliability a. Refers to the consistency of job performance over time b. Intrinsic unreliability i. Personal inconsistencies ii. Lifespace pressures iii. Environmental and situational pressures c. Extrinsic i. Pressures outside of job demands ii. Extreme weather conditions iii. Natural catastrophes iv. Machine failures d. Aggregate behaviors i. No short cuts for near term or far term ii. Not a panacea, there will always be some biases or contaminations e. Conclusion –

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i. Rank ordering of individuals will change over time ii. These changes do not reflect badly on individuals involved .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

2. Job Performance Observations a. Differing observation methods lead to different conclusions b. Assessment Center observations c. Mentor observations d. Experienced professionals in the field e. Independent raters f. Trainers g. Conclusions i. Observation methods may yield different results ii. Observation methods must be consistent iii. Methods must be related to the jobs observed 3. Dimensionality of Job Performance a. Most job performance measures use global criterion b. Many individual measures taken and added into global score c. Global scores even for lower-level jobs tend to be too simplistic d. More attention needed for the most important predictors e. Conclusions i. For specific aspects of job, single criterion (global) use works well ii. For jobs with more aspects, multiple criteria need consideration VI.

Performance and Situational Characteristics 1. Environmental and Organizational Characteristics a. Organization

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i. Pay ii. Promotion policies .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

b. Interpersonal factors i. Group cohesiveness ii. Friendship iii. Satisfaction with supervision c. Job-related i. Role clarity ii. Task repetition d. Personal factors i. Moods ii. Age iii. Tenure iv. Family size 2. Environmental Safety a. Previous injuries b. Management commitment c. Equipment maintenance 3. Lifespace variables a. Interactions with organization expectations and family demands b. Task demands on & off the job i. On call ii. Global teams iii. Virtual participation 6

c. Task challenge on first job d. Life stability .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

e. Supervisor-subordinate personality match f. Immediate supervisor’s success 4. Job and location a. Origin of the organization b. Type of organization c. Number of employees d. Number of supervisors e. Tenure of the management f. Other variables account for more variance than the previous 5 variables g. Mush more study is needed in this area 5. Extraindividual Differences and Sales Performance a. Includes influences beyond an individual’s control b. Territory workload c. Market potential d. Company market share e. Advertising effort f. Sales experience g. Sales effort 6. Leadership a. Effectiveness influenced by personal characteristics i. Age ii. Gender 7

iii. Job experience b. Effectiveness influenced by groups and organization characteristics .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

i. Size ii. Structure iii. Management behavior VII.

Steps in Criterion Development 1. All efforts must consider utility and understanding.

2. Sequential development steps a. Job analysis and organizational needs b. Measurements of actual behaviors relative to expected behaviors c. Criterion dimension identifications d. Reliable measures development e. Predictive validity determination

VIII.

Evaluating Criteria 1. Relevance a. Must be logically connected to the considered performance domain b. Will reflect ranked standing of employees with respect to i. work behaviors ii. outcome measures c. Per APA Task Force on Employment Testing of Minorities i. Tests must show direct measure of employees’ job proficiency after specific length of time ii. These tests are not developed quickly and may change over time d. May include both objective and subjective measures

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e. Objective and subjective measures have small correlation (approx +.39) 2. Sensitivity .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

a. Must determine differences between effective and ineffective employees b. May or may not be correlated to the relevance of criteria c. May change over time d. May not reflect actual cost or risk to organization if incorrect 3. Practicality a. Must include whether organization has criterion skills and knowledge b. Must balance necessary record keeping and data collection c. Must clarify personal responsibilities (input, analysis) IX.

Criterion Deficiency 1. Effective criteria cover entire domain of performance 2. Including multiple criteria increases probability accurate evaluation criteria 3. Example – Domain of University Professor a. Typical criteria i. Teaching ii. Service iii. Research b. Better criteria i. Teaching ii. Service iii. Research iv. Personal development v. Administration

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vi. Publication X.

Criterion Contamination .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

a. Occurs when no research or training accompanies criterion decisions b. Example i. Marine sergeants use of aptitude test results without understanding statistics ii. Better to use Marines with statistical and interpretive training, too c. Occurs when actual criterion includes variance not related to ultimate criterion i. This effect may increase, decrease, or have no effect ii. Operational (actual) criterion definitions must minimize bias through research d. Bias types i. Prior knowledge of predictor information 1. May be innocent bias 2. May be intentional bias 3. Best to obtain actual criteria data prior to releasing predictor criteria ii. Group Membership 1. Based on demographics 2. Similarities to raters iii. Ratings 1. Inadequate observations 2. Poor rater training 3. Intentional rater manipulation 4. Unintentional rater characteristic – Haloing a. Rating all factors the same by knowing rating on one factor

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XI.

Criterion Equivalence .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

1. Meaning a. Two variables that correlate highly without being hypothesized to relate i. Analyze the reliability or unreliability ii. If correlation remains, equivalence exists 2. Example of equivalence a. Relationship between training and performance 3. Must consider type of criterion 4. Must consider timing of criterion measurement 5. Must consider level of criterion performance for success 6. High correlations may result in a. Elimination of one or more criteria (fewer are more practical) b. Keep all criteria (more is better approach) c. Collect, keep, convert to average score XII.

Composite Criterion Versus Multiple Criteria 1. Composite criterion a. Composites are best “yardsticks” for overall performance b. Must use relevant weighting for individual criterion c. Should represent economic impacts to organization d. Validation necessary for true economic impact 2. Multiple criteria a. Measures should be considered independently as behavior cannot be averaged

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b. Examples i. Selling differs from .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

ii. Human relations differs from iii. Organizing c. Should represent behavioral &/or psychological effects for organization d. Validation necessary for increased understanding and economic impact 3. Differing assumptions a. Nature of the constructs (criteria) considered relevant & predictive b. Primary purpose of actual validation process 4. Resolving the dilemma a. When research is goal, use multiple criteria, and increase understanding b. When management is goal, use composite criterion, and improve economics XIII.

Research Design and Criterion Theory 1. Operationally define predictors and outcome criteria 2. Acknowledge the behavior and outcome domain components of performance domain 3. Recognize two way relationships between predictors and outcome criteria a. Criterion related 4. Recognize two way relationships between predictors and psychological constructs a. Construct validity 5. Recognize two way relationships between psychological constructs and performance domain a. Construct validity b. Results in derived job specifications

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6. Recognize two way relationships between performance domain and criterion measures (outcomes) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation

7. Recognize two way relationships between performance domain and predictor measures 8. Recognize two way relationships between performance domain and actual job a. Results in job descriptions

XIV.

Summary 1. Criterion considerations are necessary for effective human resource management 2. Conclusion qualities dependent upon a. Specific criterion measures b. Timing of measures c. Conditions outside individual control d. Situational factors i. Potential distortions ii. Potential biases

Discussion Questions 1. Why do objective measures of performance often tell an incomplete story about performance? Pages 61 - 63

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Objective measures of performance are those based on factual data such as units produced, hours worked, clients seen, and number of calls made. While easy to understand and not subject to personal biases, these types of performance measurements often tell an incomplete story because they leave out contextual and contingent performance variables. For example, family dynamics may influence employee attendance. An employee with one or more children may be required to miss work more often than an employee with no children. However, the employee who is a parent may perform as well or better than employees with no children.

Quality of raw materials is another contingency performance variable. Employees who have to work with materials that turn out to be inferior may be misjudged if quality of product produced is evaluated without considering the raw materials provided to the employees. Leadership effectiveness also may influence employee performance criterion evaluation. Leaders who are .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation more effective at communications may lead to greater performance evaluations for employees than leaders with less effective communication skills but with equivalent employees.

Performance and organizational characteristics may influence criteria. Lifespace variables, jobs, locations, extraindividual differences, and sales performance are additional variables that may be more meaningful than objective data alone.

2. Develop some examples of immediate, intermediate, and summary criteria for (a) a student, (b) a judge, and (c) a professional golfer? Based on information from pages 54 - 63 Student Immediate Criteria might include grades on tests, project grades, and attendance per course per semester. Intermediate criteria could include the ratio of credit hours attempted to credit hours earned per academic year and class ranking. Summary criteria could include cumulative GPA, class ranking within graduating class, and class ranking within major.

Judge Immediate criteria might include number of cases presided over per year per category of law suit and the number of cases with decisions per year per category. Intermediate criteria might include the ratio of cases decided versus appeals filed with decisions reversed and the number of judges in training sponsored. Summary criteria might include the ratio of decisions reached relative to the citations for decision precedence and the ratio of judgments to the recurrence of recidivism.

Professional Golfer Immediate criteria might include the number of tournaments completed and average score per game per tournament. Intermediate criteria might include the number of clinics conducted to promote the sport and the ratio of salary earned per tournament. Summary criteria might include the ratio of lifetime earnings to number of tournaments completed, the number of additional young golfers mentored, and the total monetary value community development efforts based on lifetime earnings.

3. Discuss the problems that dynamic criteria pose for employment decisions. Pages 57, 58

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After operational definitions are determined for the performance criteria, the next question to be answered is at what time in the performance cycle should the criteria be measured? The best times for each criterion will vary based on the situational, environmental, and job characteristics. The purposes for each measurement also need to be considered. For example, when making an initial performance prediction the criterion performance margins may .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation be wider than when actual performances after training and practice have occurred. It is also important to consider whether individual performance criteria or group performance criteria are appropriate. Criterion performance as a function of experience is important as well. Variations in criteria as determined by changes in the raters and the raters’ experiences must be consider in addition to the changes in the importance of the criterion over time. To summarize, criteria may be dynamic with regard to changes over time in average levels of group performance, validity coefficients, and in the rank ordering of criterion over time. The changes may be studied from three perspectives, that of the changing task model and that of the changing subjects model, and the changing raters model.

4. What are the implications of the typical versus maximum performance distinction for personnel selection? Pages 54 - 59 If personnel selection were absolutely accurate, the only employees who would be hired would be those employees who always perform at the maximum level possible for the position in which they are placed. However, personnel selection is not absolutely accurate and employees do not always perform at the highest level possible for the positions in which they are placed. Individual performances will vary per employee. Personnel selection will vary in effectiveness as well. Therefore, typical performance refers to an employee’s average level of performance and maximal performance refers to an employee’s peak level of performance.

Research data indicates that employees strive for peak performance when evaluations are imminent or in progress. The challenge for personnel selection becomes the placement of individuals who will sustain predictable high levels of performance regardless of whether they are being evaluated. Additionally, personnel selection must consider the impacts of environmental and situational factors on employees’ performance regardless of where and when performance measurements are taken during evaluation cycles.

5. What are the implications for theory and practice of the concept of in situ performance?

Pages 61 – 63

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In situ performance refers to all of the outside influences (situational, contextual, strategic, and environmental) that may affect individual, group, team, or organizational performance. In situ performance also considers the relationships that may exist between these influences. Theoretical understanding of these influences exists but has been challenging to measure empirically. Therefore, some HR practices surrounding in situ performance have developed more from tactical considerations than from empirical evidence recommendations.

Some in situ performance influences include environmental and organizational characteristics such as pay, promotions, group cohesiveness, tasks, and role clarity. Environmental safety is another category of influences which considers injury, safety practices, and hazardous materials.

Lifespace variables include personal orientation, career confidence, and job stress. Job and location, territories, market potential, company market share, advertising, experience, effort, and leadership are influences included in the categories of extraindividual differences, sales performance, and leadership.

6. How can the reliability of job performance observation be improved? Pages 59, 60 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation Job performance observation reliability can be improved when personal performance inconsistencies are understood and when variations external to job demands or individual behaviors are managed. Understanding personal performance inconsistencies will increase the intrinsic reliabilities of criteria. For example, understanding the lifespace variables for an employee will increase the intrinsic reliability for this person’s performance evaluation.

Managing external variations will increase extrinsic reliabilities of criteria. For example, performance evaluations should consider machine performance, weather related challenges, and supply delays. One approach to dealing with factors influencing the reliability of ratings is use aggregate or average behavior over situations, over time, and over raters. While neither simple nor inexpensive, taking an aggregate approach for criterion measurements may lead to fewer challenges and greater acceptance and therefore improve the quality and the effects of this process.

7. What are the factors that should be considered in assigning differential weights when creating a composite measure of performance? Pages 67, 68 When creating composite measures of performance, the factors that should be considered include the weighting of the criteria, which criteria, and the context of the criteria.

For example, when the evaluation criterion is total sales volume, the composite evaluation criterion should include the number of customers contacted, the length of time since to the last evaluation, the average sale per customer, and the variety of products sold relative to the total sales volume. Each of the criteria could be weighted differently. Sales volume for some sales people will need to make more travel related trips to further distances to complete customer contacts. Traveling further more often may take more time than a sales person making contacts in a heavily populated area. Some customer areas may be more open to products with lower product costs leading to smaller volumes for greater expended effort. Organizations may stress that some products be sold over existing products which will influence for total sales volume, as well. Documenting the composite criterion strategy such that both the raters and the ratees are aware will improve the overall effectiveness for the composite criterion performance.

8. Describe the performance domain of a university professor. Then propose a criterion measure to be used making promotion decisions. How would you rate this criterion regarding relevance, sensitivity, and practicality? Pages 69 - 71, Figure 4-3 from page 70 The performance domain of a university professor includes teaching, administration, service, research, publication, and continued development within their specialty area. Criterion measurement to influence promotion decisions could include the following.

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Teaching – Teaching could be evaluated based on student opinions, student performance on departmental and standardized tests, observations by peers, and self ratings. Each criterion score could be added and then an average calculated to form a teaching composite criterion.

While very relevant and sensitive, the practicality of this composite would be very difficult to achieve.

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 4 – Criteria Concepts, Measurement, and Evaluation Administration – A composite criterion for administration could be developed by determining adherence to university standards for policies regarding when syllabi, grades, and forms are completed. This criterion is not as relevant to classroom performance but could be both sensitive and practical and data documenting administrative efficiency already exists within most universities.

Service – Service to the community by way of seminars, volunteering, and outreach would vary by discipline and would present particular challenge for composite criterion development. The measure would be relevant but would need to very flexible and therefore not too sensitive with regard to overall performance. The practicality of this measure presents challenges, particularly, in the development of fair standards and oversight.

Research – Research needs to be evaluated by varying standards, too. For example, some research efforts lead to relatively quick results and are considered publication worthy while other efforts may take years to complete and not result in publications but do result in service to the body of knowledge for the involved disciplines. Therefore research is relevant but should not be weighted too heavily or be too sensitive relative to the other critical performance criterion.

Publication – Publications need to be considered by category, frequency, and diversification.

For example, some disciplines will only consider empirical journals as performance worthy but equivalent efforts and influence may result from publications in other media and other journal types. For example, textbook publications, course materials and supplements, and public speaking are all worthy of publication consideration. Additionally, all of the effort prior to publication attempts needs to be considered regardless of actual publications. This measure is relevant and depending on the discipline and university could be considered highly sensitive.

Given clear expectations and relatively simple record keeping for efforts, attempts, journals receiving submissions and the outcomes, this measure offers some practicality.

On-going development – This criterion could be developed through the accumulation of continuing education credits, additional courses completed, degrees earned. Additional consideration should be given to seminars, conferences, and training programs attended. This criterion is relevant, sensitive, and practical. However, the sensitivity should be not be set too highly as the ability to complete will be determined by university budgets and by the demands of the other criteria.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

Overview This chapter presents research on performance management systems and discusses the practical applications and some of the challenges surrounding performance management systems. The chapter begins by defining the differences between performance appraisals and performance management systems. From here, the underlying and stated purposes for performance management systems are summarized. Some of the challenges for and barriers to effective performance management systems are presented. Discussions include the perspectives of those being rated and those who complete the ratings. Varying sources for rating information and when each source should provide rating information are summarized. The chapter also clarifies the differences between objective and subjective ratings and the differences between relative and absolute ratings. Particular attention is given to the performance of teams. The chapter concludes with recommendations for maximizing the effectiveness of performance feedback through goal-setting interviews.

Annotated Outline I.

At a Glance 1. Performance Management Systems (PMS) – continuous process a. Identify, measure, develop b. Individual & group organization performance c. Both strategic & operational 2. Performance appraisal – one aspect of PMS a. Description and evaluation b. Individual &/or group strengths and weaknesses c. Based on observations & judgments d. Bias is inherent to the process i. True with objective data ii. True with subjective data e. Can reduce bias through training

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i. Technical & human ii. Role incompatibilities Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

iii. Effective feedback process II. Introduction 1. Performance management a. Continuous process i. Identifying ii. Measuring iii. Developing b. an employee or groups of employees 2. Performance Management includes reviews (appraisals) a. occur regular intervals b. observations & judgments c. include feedback 3. Annual Performance Appraisals - adult report cards a. Earn employees rewards i. Increases in hourly wages ii. Increases in salary iii. Renewal of contracts iv. Increases in vacation time v. Recognition awards vi. Profit sharing 2

4. To minimize observation and judgments bias a. Collect multiple observations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

b. Collect multiple judgments c. Train the raters d. Standardize the methods e. Rate the raters II.

Purposes Served - 8 1. Strategic – links employee functions to organizations’ mission and goals 2. Communication – employees know how well they are performing 3. Employment decisions / predictions – a. promotions, b. transfers, c. training, d. terminations, e. discipline, f. merit recognition 4. Results can be used in test validation criteria as in Human Resources research 5. Developmental for identifying organizational training needs – help establish goals/objectives for training programs 6. Developmental for employees – provides a way to give & receive feedback 7. Developmental for the organization - diagnoses, maintains, and develops 8. Document & record HR decisions & legal requirements (Chapter 2)

3

III.

Realities of Performance Management Systems - 5 1. Appraisals happen in all organizations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

a. large and small, b. public and private, c. local and multinational 2. Appraisals have personal and organizational consequences 3. As job complexity increases, accuracy with ratings becomes more difficult 4. Appraisals are inherently political 5. With regard to implementation & administration a. require time and effort b. must be believed in i. by employees & ii. by supervision IV.

Barriers to Implementing Effective Performance Management Systems - 3 1. Organizational Barriers a. Common: i. prior decisions, ii. material defects, iii. design flaws b. May be overcome through group cohesiveness c. Special or unique barriers may include i. person,

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ii. event,

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

iii. subgroup may cause barriers d. May be overcome by adapting & compensating 2. Political Barriers a. Accuracy – how important b. Motivation – how important c. Reward – how important d. Managers may use system to make themselves look good 3. Interpersonal Barriers a. Misperception about actual standards b. Accurate ratings may intimidate rater c. Objection to superior - subordinate relationship d. Preference for continuous coaching V.

Fundamental Requirements of Successful Performance Management Systems - 9 1. Congruence with organizational goals a. PMS should measure those behaviors that help the organization meet its goals.

2. Thoroughness a. PMS should apply to i. All employees ii. All organizational behaviors

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iii. For entire time period under review 3. Practicality .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

a. PMS should be i. Available ii. Plausible iii. Acceptable iv. Easy to use v. More beneficial than costly 4. Meaningfulness a. PMS should i. Measure behaviors that an employee controls ii. Occur at predictable intervals iii. Add to employee and evaluator skills iv. Be used to determine specific decisions iv. Be perceived organizationally as important 5. Specificity a. For the PMS participants, rater & ratee must know i. what is expected ii. how expectations are measured 6. Discriminability a. An effective PMS makes it clear what the differences are between i. good performance 6

ii. acceptable performance iii. unacceptable performance .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

7. Reliability & Validity a. PMS must produce consistent results over time & raters b. PMS must provide accurate measurement i. of past performance and ii. of future expectations 8. Inclusiveness a. Effective PMS allow raters & ratees to design the system b. Effective PMS allow ratees to rate their own performance c. Effective PMS encourage rater & ratee to participate actively 9. Fair & Acceptable a. Effective PMS result in raters & ratees beliefs that i. processes are 1) just and 2) equitable ii. outcomes are 1) just and 2) equitable VI.

Behavioral Basis for Performance Appraisal 1. Performance appraisals are the end result of 3 part process a. Job Analysis – work descriptions

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b. Performance Standards - acceptable & unacceptable behaviors c. Performance Appraisals – reviews of strengths and weaknesses .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

2. Performance Appraisals include 2 equally important processes 3. Observations of behaviors a. detection b. perception c. recall d. recognition 4. Judgments about the value of behaviors a. categorize b. integrate c. evaluate VII.

Who Shall Rate? What about 360-degree feedback?

1. Generally … the supervisor a. control consequences (rewards / punishments) 2. 360 degree systems increase information but b. supervisor makes ultimate decision 3. Teams require different style a. For teams or infrequent supervisor interactions i. Peer process 1) Peer nominations – good for high & low performances

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2) Peer ratings – good for giving feedback Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

3) Peer rankings – good for discriminating performance levels ii. Other Peer advantages 1) Reliable 2) Valid 3) Relatively free from various biases iii. Peer disadvantages 1) Friendship bias 2) Impacts cohesiveness, satisfaction & future ratings (revenge ratings) iv. Common method variance 4. What is Common Method Variance? a. Variation in performance ratings due to method rather than actual performance. b. Can minimize by improving: i. Procedures ii. Statistical manipulations 5. When subordinates rate managers, a. Quality information is gained for i. Delegation 9

ii. Planning & organizing iii. Communication .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

iv. Leadership style b. Can add strength to ratings by averaging i. anonymity very important ii. purpose of ratings important iii. salary & promotions iv. accurate for development 6. Self ratings a. Improve motivation & acceptance of process b. May show more bias, leniency c. May show less variability, less agreement with other rating sources d. Cultural influence may be present e. To strengthen self ratings i. Rate relative to others in their position ii. Allow practice with self ratings iii. Assure confidentiality iv. Focus on the future 7. Clients as raters a. Can rate service b. Can determine promotions, training, transfers c. Assist with HR research 10

d. Assist with development planning

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

8. When other sources or groups rate, ratings may a. Influence supervisory ratings b. Raise high ratings higher c. Lower a good rating d. Remembering specifics better e. Show more response bias f. Remember, when groups rate groups, ratings influenced by i. the purpose of the group and ii. the purpose of the rating 9. Agreement & Equivalence of Ratings across Sources a. Validity statistics are not high (.14 to .22) b. Important to note that the definition of what is to be measured will increase the agreement of ratings VIII.

Judgmental Biases in Rating – the challenge to human objectivity 1. Leniency versus severity

a. Stable behavior pattern for raters b. Concern is over concept of normal distribution for performance c. Leniency may occur due to perception of reason for ratings i. Real consequences lead to more leniencies than ii. Consequences tied to research efforts 11

d. Can control leniency tendencies by i. Forcing normal distribution of ratings .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

ii. Requiring rank ordering of ratees iii. Encouraging frequent feedback iv. Holding raters accountable for results 2. Central Tendency a. Occur when highs and lows are avoided b. Considering all ratees as average c. Can minimize by i. Making sure raters know what anchors mean ii. Convincing raters of value of differential ratings

3. Halo a. Assigning ratings based on general impression rather than specifics b. Recent research findings show haloing i. May not be as common as thought ii. May not detract from quality of ratings iii. Impossible to separate true from illusory haloing iv. May not be important to rating process v. And rater error halo are independent IX.

Types of Performance Measures - Objective and Subjective 1. Objective

a. Production Data – performance outcomes b. Employment Data – may not exist 12

2. Weaknesses with objective data a. Performance variations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

b. Situational influences 3. Subjective a. May reflect judgment biases b. May classify as relative or absolute

X.

Rating Systems: Relative and Absolute 1. Relative – compared to others, employee comparisons a. Simple rankings – first to last, entire list b. Alternation rankings – best, worst – next best, next worst - etc. c. Paired comparisons – best of each pair for all possible pairings d. Forced distributions – forcing a normal distribution of ratings 2. Absolute – compared to self a. Narrative essay written by rater about ratee, detailed, qualitative b. Behavioral checklist – behaviors described, scaled, summated c. Forced choice system – behaviors grouped, grouping scores tallied i. Discriminability shown – differences clear ii. Preferences shown – valued behaviors 3. Critical incidents – anecdotal, based on experience and effectiveness 4. Graphic rating scale – most widely used, varying degrees of structure a. Response category definitions b. Intended response recognition

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c. Definition clarity for behaviors d. Dependence on anchoring – continuum of behaviors .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

e. Strengths i. Less time consuming to develop ii. Provide quantitative data iii. Promote consideration of more than one behavior iv. Standardized and comparable 5. Behaviorally anchored scale – job translations and retranslations a. Group meets to identify and define job performance dimensions b. Second group meets to develop critical incidents for each dimension c. Third group sorts & places the critical incidents on performance scale d. Strength – powerful results e. Weakness – time consuming and expensive XI.

Summary Comments Rating Formats and Processes 1. Sources and uses appraisal data a. Employment decision i. Supervisor ii. Subordinates iii. Clients served b. Self-development i. Supervisor ii. Peers iii. Subordinates

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iv. Self v. Clients Served .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

c. HR research i. Supervisor ii. Peers iii. Clients 2. To improve outcomes a. Build as much structure as possible into the PMS b. Allow raters to consider only those areas where qualified to rate c. Remember that process is as important as the mechanics XII.

Factors Affecting Subjective Appraisals 1. Process is complex a. Organizational barriers b. Political barriers c. Interpersonal barriers d. Raters’ idiosyncrasies 2. Need to know more about the cognitive processes of raters & ratees

XIII.

Evaluating the Performance of Teams 1. Types of Team important a. Work or service – routine b. Project – specific work c. Network – technology dependent 2. If social loafing exists,

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a. commitment to team disappears b. usefulness of team evaluations disappear .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

XIV.

Rater Training 1. Rater Training goals a. Improve observational skills b. Reduce judgmental biases c. Improve communication skills 2. One of best Rater Training Methods - Frame of Reference (FOR) a. Participants told will evaluate 3 ratees’ performance, 3 dimensions b. Participants receive rating scales & listen while trainer reads scales c. Trainer describes performance levels per dimension d. Participants shown vignettes of performances e. Ratings collected and discussed f. Trainer provides feedback

XV.

The Social and Interpersonal Context of Performance Management Systems 1. PMS includes aspects of a. Measurement i. Psychometric scales ii. Assessments iii. Statistical analyses b. Attitudes i. Satisfaction ii. Acceptance

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iii. Beliefs iv. Perceptions .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management

1) Justice 2) Fairness c. Behaviors i. Observable ii. Effective, ineffective XVI.

Performance Feedback: Appraisal and Goal-setting Interviews 1. Personal Development –one of primary objectives for PMS 2. PMS should strive to avoid pressures associated with stereotype threat 3. Effective goal setting involves a. Communicate Frequently b. Get Training in Appraisal c. Judge Self First Encourage d. Allow Subordinate Participation e. Use Priming Information f. Be warm & encouraging g. Judge Performance, not personality or self-concept h. Be specific about behaviors expected and required i. Avoid destructive criticisms j. Avoid threats to employee’s ego k. Set mutually agreeable, formal, challenging goals l. Continue to communicate and assess progress regularly m. Tie Rewards to Performance

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Discussion Questions 1. Why do performance management systems often fail? Pages 75, 76 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management Performance management systems often fail for several reasons. One of the primary reasons for failure is the mistrust of those being rated and of those who provide the ratings.

Another reason for failure is that ratees and raters often feel ill at ease during the process but will intentionally try to downplay the emotional aspects of the performance appraisal process.

Additionally, various systems may have built in technical problems, rating inconsistencies, and poorly understood performance goals. Finally, performance management systems may fail because the system does not tie into the organization’s vision, mission, and strategic priorities.

2. What is the difference between performance management and performance appraisal?

Pages 75, 77 Performance appraisal is a systematic evaluation of the strengths and weaknesses of individuals and groups with regard to their job specifications. In the United States, performance appraisals usually occur once a year and may be tied to increases in pay. In other countries, appraisals may occur every 5 to 10 years. Performance management occurs continuously as a process which identifies, measures, and develops individual and group performances toward organizational goals. Both performance appraisals and performance management need to be behaviorally based and exhibit relevancy with regard to organizational strategy. However, a basic difference exists in that performance appraisals occur at one time and performance management occurs continuously. Performance appraisal processes are generally understood and accepted within organizations by employees and managers. Performance management is not as readily understood and, if not implemented correctly, may lead to an overall distrust within organizations and may serve to undermine employee performance at all organizational levels.

3. What are the three most important purposes of performance management systems and why?

Pages 74, 75 The three most important purposes of performance management systems may be categorized as strategy, communication, and employment decision based. Strategically, performance management systems serve to link organizational missions to employee behaviors and responsibilities. Performance management systems serve to as communicate how well an employee is doing and what the organization expects from an employee. Employment decisions based on performance management include whether to train, promote, transfer, discipline, or terminate employees. Performance management systems may serve additional purposes, too.

These include providing criteria data, training development information, organizational development information, personal development information, a source for feedback information, and human resources record keeping.

4. Under what circumstances can performance management systems be said to “work”?

Pages 76, 77 18

Performance management systems may be said to work when they address and include nine requirements. These requirements include congruence with strategy, thoroughness,

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management practicality, meaningfulness, specificity, discriminability, reliability/validity, inclusiveness, and fairness/acceptability. Taken in order Congruency means that the performance management system ties behaviors and expectations to organizational goals.

Thoroughness means that the performance management system includes all job related behaviors for the entire time covered by the review.

Practicality refers to an organization’s ability to administer the systems with the benefits outweighing any associated costs.

Meaningfulness refers to the perceptions that employees and managers have with regard to the usefulness of the information gathered for everyone involved.

Specificity is accomplished when the system provides clearly understood guidance for employees and management.

Discriminability is exhibited when the system clearly distinguishes between effective and ineffective employees.

Reliable and valid performance management systems produce consistent ratings over time that accurately measure and predict performances.

Inclusiveness is demonstrated when raters and ratees actively participate in the review process.

Fairness/acceptability means that raters and ratees perceive the performance management system as conducted with justice and equitability.

5. What kinds of unique information about performance can each of the following provide: immediate supervisors, peers, self, subordinates, and clients served? Pages 79 - 82 Immediate supervisors provide unique information with regard to a subordinate’s behavioral contribution to an organization’s goals. Supervisors must also distinguish between effective and ineffective performances as related to the distribution of rewards and disciplinary actions. This relationship works well when supervisors interact frequently with their subordinates but does not perform as well when subordinates function with more autonomy.

For these employees, other sources need to contribute to performance information.

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Peers provide valuable performance information when members of groups work with each other consistently. Peer ratings may be gathered by using nominations (high and low knowledge, skills, abilities, or others), ratings (for feedback), and rankings (highest to lowest performers). Peer ratings research demonstrates reliability, validity, and ratee acceptance.

Ratings usefulness may suffer when group friendship bias exists or when the group members rate behaviors unrelated to the work (common method variance).

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management Subordinates provide unique and extremely valuable performance information with regard to a manager’s or a supervisor’s administrative effectiveness, planning, delegation, communications, and leadership. These ratings appear to be both reliable and valid. However, some caution is warranted as subordinate ratings tend to show more leniencies with regard to salary and promotion decisions compared to decisions for managerial development.

Self ratings contribute significantly to effective goal-setting, personal development, and acceptance of the overall performance management system. Self ratings do exhibit some weakness or challenge with regard to leniency, variability, bias, and agreement with other raters. These challenges may be explained by differences in perspectives or on the focus of the rated behaviors and actions. The effectiveness of self ratings can be improved by following four steps. These steps include the use of absolute and relative performance scales, collection of multiple self ratings, assurance of confidentiality, and focus on the future.

Client ratings offer unique perspectives for an employee’s performance as seen through individuals outside of an organization. While these perceptions may not reflect an accurate assessment of an organization’s goals, the perceptions can contribute to organizational decisions regarding promotion, transfer, training, development, and criterion measurement.

6. What are some of the interpersonal/social interaction dimensions that should be considered in implementing a performance management system? Pages 75, 76, 102, 103 Interpersonal and social interaction dimensions should be considered when implementing performance management systems. Interpersonal dimensions to consider include communication effectiveness and beliefs in the performance management systems process.

Social interaction dimensions to consider include measurement characteristics, behavioral observations, and attitudinal issues. Measurement characteristics refer to the use of objective versus subjective data and relative versus absolute. Additional measurement characteristics to consider are the types of scales (behavioral, graphic, forced choice, rank ordering) and the frequencies and repetitions of the measurement. Behavioral observation characteristics to consider are the sources (supervisor, subordinate, self, client) of observations and the verifiability of the observations. Attitudinal interactions include the perceived fairness and the perceived procedural justice of the performance management system. These attitudinal perceptions are influenced by contextual performance and the assertiveness of the ratee.

7. Under what circumstances would you recommend that the measurement of performance be conducted as a group task? Pages 82, 83, 99

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I would recommend that performance management be conducted as a group task when three conditions are present. The first condition indicating group rating effectiveness is when individuals interact often with members of a work group. Research supports the effectiveness of group ratings when group members work with each other consistently over time. Second, group ratings are indicated when specific behaviors over time are of interest. Groups are better at remembering definite, unique, and combined group member effectiveness and effort. Finally, group ratings are appropriate when the magnitude of the individual performance is not too .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management large. In summary, group ratings offer a more complete picture of the effects individuals have on group and organizational performance.

8. What key elements would you design into a rater-training program? Pages 85 – 95, 101, 102 Three key elements to design into a rater-training program (aka train the trainer) are improving observational skills, reducing judgmental biases, and improving rater communications with ratees. To improve observational skills, I would teach the raters what behaviors to attend to. For example, having the rater play the role or complete the job of the person they are to rate will assist the rater’s ability to focus on necessary and effective behaviors and to screen out the unnecessary or irrelevant behaviors. To reduce judgmental biases, I would teach the raters about the types of biases and allow them to experience the recognition of these biases through case studies, video demonstrations, and rating practice. I would make sure that the training program also offered occasional re-training to assist the rater to develop long term rating skills.

The specific approach with each of these training efforts will include a focus on the most appropriate Frames of Reference for the jobs’ performances.

This training will include six specific steps. First, trainees receive instructions to evaluate three ratees on three dimensions. Next, trainees read the dimensions while hearing the dimensions read aloud. Then, the trainer discusses the appropriate ratings per ratee per dimension. Videos are shown demonstrating the behaviors. Ratings are collected from the raters, written on a board, and discussed as a group. Finally, the trainer will provide the preferred ratings per ratee per dimension allowing questions and answers to occur as the presentation is given.

9. Assume an organization is structured around teams. What role, if any, would a performance management system based on individual behaviors and results play with respect to a teambased performance management system? Pages 72 – 82, 99 As organizational interests continue to increase with regard to team based management and performance, it is necessary to understand how each individual contributes to a team’s successful performance. As individual contributions to team performance is understood, overall team performance should increase leading to increases in individual performance in a repetitive and iterative process. The critical nature of performance will be a function of the type of team involved. For example, project teams may not work together long enough for an individual to need a team based performance appraisal. Work or service teams may have members needing specific behavioral training and evaluation to increase the overall team’s performance. Network team members will need to receive individual training and performance evaluation to make sure that all of the members have equivalent or the necessary specific technological skills.

10. Discuss three “dos” and three “don’ts” with respect to appraisal interviews. Pages 104 - 108 21

Three “dos” for performance appraisal interviews are to communicate frequently with the ratee(s), stay current with appraisal training, and to judge your own performance first Appraisals receive more acceptance when they occur often and are specific rather than long term and general. Frequent communications come across more as a coaching encounter than as .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 5 – Performance Management a potentially threatening or possibly embarrassing appraisal. Just as jobs are becoming more and more technologically dependent and experiencing frequent changes, appraisal methodologies and purposes change. This requires effective appraisers to stay current with their own training, too. Learning how to evaluate your own performance effectively also helps you to rate others more effectively. Becoming an effective self evaluator requires time and intentional awareness but does lead to better appraisals for others, as well. Other “dos” for performance appraisal interviewers include encouraging subordinate participation, use of priming information, being warm and encouraging, judging performance not personality, being specific, listening actively, avoiding criticisms, setting effective goals, assessing goals regularly, and tying organizational rewards to performance. With these “dos” in mind, several “don’ts” include limiting subordinate participation, avoiding priming information, being cold and discouraging, attacking the ratee’s personality, being vague, failing to listen, threatening a ratee’s self-esteem, setting rigid goals, communicating infrequently and inconsistently, failing to tie organizational rewards to performance.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

Overview Chapter 6 introduces concepts surrounding the measurement and interpretation of individual differences. Chapter 6 also focuses on the relevance of individual differences to the practice of human resource management (HRM). The chapter opens with a discussion of the meaning of measurement and clarifies the differences between physical characteristics and psychological traits. Following the discussion of measurement, the various types of scales and the appropriate uses for each type of scale is presented. Special emphasis is placed on the uses of nominal, ordinal, and interval scales. The next topic is the identification of and the development of measurement devices or tests. This discussion includes the steps to develop tests and the importance of test score reliability. Special attention is paid to the different aspects of reliability and the appropriate reliability statistic per aspect. The chapter concludes with the role that reliability plays on the validity of test scores.

Annotated Outline I.

At a Glance A. Heart of personnel psychology (human resource management) B. Measurement of individual differences C. Differences 1. Physical 2. Psychological D. Psychological measurements 1. Nominal - frequent 2. Ordinal - frequent 3. Interval – statistical considerations 4. Ratio E. Decisions require understanding of patterns of 1. Knowledge 2. Abilities

1

3. Skills 4. Other aspects .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

F. Understanding gained through tests 1. May use tests already developed 2. May develop specific or new tests G. Analysis assists understanding test results 1. Item Response Theory 2. Generalizability Theory H. Test Classification Criteria 1. Content 2. Administration 3. Scoring I. Tests must have 1. Reliability a. Dependable b. Consistent c. Free of Systematic Error J. Test scores actually bands or ranges of scores II. Introduction A. To measure differences is to measure the variability.

B. To measure variability must know 1. how to measure accurately 2. must know when variations’ differences important III. What is Measurement?

2

A. Definition 1. The assignment of numerals to objects or events according to rules. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

2. Numeral assignment applies to both a. physical characteristics b. psychological characteristics c. similar process B. Measurement answers the questions 1. How many?

2. How much?

3. How often?

C. Psychological measurements 1. focus on individual traits & 2. are not as precise as physical measurements D. Traits – label for groups of interrelated behaviors 1. Dominance 2. Agreeableness 3. Creativity 4. Openness 5. Extraversion 6. Others E. Traits - measured by comparing one person to standardized samples of behaviors from other people F. Trait standards reflect measurement by types of scales G. Psychological Measurement Scales generally 3

1. Nominal or ordinal scales 2. May approximate interval scales .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

IV. Scales of Measurement A. Types of Scales 1. Nominal 2. Ordinal 3. Interval 4. Ratio B. Nominal Scales 1. lowest level measurement 2. categorize or catalogue 3. numbers have no meaning (descriptive rather than quantitative) 4. assumes equality as in a = b 5. assumes exclusivity as in a ≠ b 6. must be either equal or exclusive but not both at same time 7. Nominal Scale statistics used by HRM based on frequencies a. Chi square statistics b. Contingency coefficients C. Ordinal Scales 1. next level measurement 2. categorize, catalogue, rank order (ranks magnitude) 3. assume equality (a=b), exclusivity(a ≠ b), and 4. assume transitivity, 4

a. If [(a>b) & (b>c)], then (a>c) b. If (a = b) and (b= c), then (a=c) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

5. Transitivity to HR means a. one candidate is better than … b. one candidate is stronger than … c. one candidate is more qualified 6. Ordinal Scale Statistics a. medians b. percentile ranks c. rank-order correlations d. rank-order analysis of variance D. Interval Scales 1. categorize, catalogue, rank magnitude 2. assume equality, exclusivity, transitivity, and additivity 3. additivity 4. assume equal size units a. If (a>b) and (b>c), then (a>c)

or

b. If (a=b) and (b=c), then (a=c)

and

c. (d-a) = (c-a)+(d-c) 5. Interval Scales to HRM, additivity means a. If one candidate scores 10 points higher on a trait and that trait is valued, then this candidate is 10 points better than a candidate scoring 10 points lower.

5

b. Value optimism, measure optimism, chose most optimistic person 6. Interval Scales statistics .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

a. Central Tendency b. Variability c. Correlation coefficient d. Tests of significance e. Transformations: add, subtract, multiply, divide by constant number E. Ratio Scales – all characteristics of interval scales and absolute zeros 1. Equality 2. Exclusivity 3. Transitivity 4. Additivity 5. Absolute Zero Point 6. Not as commonly used for traits analyses V. Scales used in Psychological Measurement A. Psychological Measurement Scales generally are nominal or ordinal B. Psychological Measurement Scales may approximate interval 1. Assume equality between intervals of traits a. intellect b. aptitude c. personality pattern 2. When interval equality is questioned, transform raw scores statistically into equivalent derivatives C. To HRM, psychological intervals consider the social utility 6

1. selection: hire or reject .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

2. placement: which position 3. diagnosis: which remedial alternative 4. hypothesis testing: accuracy of theory 5. evaluation: what score VI. Selecting and Creating the Right Measure A. Otherwise known as the “right test” B. In HR, tests are 1. Written, oral, or performance 2. Interviews, rating scales, and/or scorable 3. Systematic by content, administration, scoring C. When HRM knows what to test, then must decide where & how to test 1. Mental Measurements Yearbook 2. www.unl.edu/buros/00testscomplete.html D. Selecting & Creating Tests 1. Determine a Measure’s Purpose 2. Define the Attribute 3. Develop a Measure Plan 4. Write Items 5. Conduct a Pilot Study 6. Conduct Traditional Item Analysis by analyzing item a. clarity, 7

b. distractors, c. difficulty, .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

d. discrimination 7. Conduct Item Response Theory Analysis by analyzing item a. difficulty, b. discrimination, c. probability of guessing 8. Select Items 9. Determine Reliability & Validity 10. Revise & Update E. Selecting Tests by Classification Methods 1. Content a. Task i. Verbal ii. Nonverbal iii. Performance b. Process i. Cognitive 1). Ability 2). Achievement ii. Affective (inventories) 1). Interests 2). Values 3). Motives 8

4). Traits 2. Administration .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

a. Efficiency i. Individual ii. Group b. Time c. Speed d. Power e. Standardized or non-standardized 3. Scoring a. Objective - unbiased b. Nonobjective i. bias potential high ii. risk rater variance 4. Other considerations a. Costs i. direct ii. indirect b. Administration time c. Interpretation of results d. Face validity F. Test Guidance Sources 1. APA’s Guidelines for Test User Qualification 9

2. Sample user qualification form www.agsnet.com/site7/appform.asp VII. Reliability as Consistency .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

A. Reliability 1. formally defined - freedom from unsystematic measurement errors 2. informally defined - consistency B. Formal definition of error – 1. minimized random errors from ratee(s), rater(s), instrument 2. random error spread evenly VIII. Estimation of Reliability A. Reliability statistics 1. correlation coefficient, r , -1.0 to +1.0 2. coefficient of determination, r₂, -1.0 to +1.0 B. Reliability coefficients estimate 1. precision of procedures 2. performance consistencies C. Reliability methods measures 1. Test – retest coefficient of stability 2. Parallel forms coefficient of equivalence 3. Internal consistency a. Kuder-Richardson 20 b. coefficient alpha (Cronbach) 10

4. Split-half also produces a coefficient of equivalence

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

D. Reliability consideration 1. Rater consistency or Interrater reliability, error attributable to examiner 2. Measured by a. interrater agreement b. interclass correlation c. intraclass correlation 3. Interrater reliability errors may be due to a. what is observed b. access to nonattribute information c. interpretation expertise d. observation evaluation E. Reliability & Error Sources – Method and Source 1. Test-retest

time sampling

2. Parallel forms

content, time sampling

3. Split-half

content

4. Cronbach’s alpha

content

5. Kuder-Richardson

content

6. Interrater agreement

consensus

7. Interrater correlation

consistency

8. Intraclass correlation

consistency

F. Reliability & Error Source, for more information 11

1. Standards for Educational and Psychological Tests

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

2. Mental Measurements Yearbook 3. www.unl.edu/buros/00testscomplete.html IX. Interpretation of Reliability A. Interpretation of Reliability 1. depends on use of scores 2. also place limits on validity B. Factors effecting reliability

1. Individual differences ranges 2. Measurement difficulty procedure 3. Sample size & representativeness 4. Standard error of Measurement C. For HRM, standard error of measurement used to determine 1. Whether individual descriptions differ significantly 2. Whether individual measures differ significantly from hypothetical true score 3. Whether tests discriminate differences per group 4. Whether test scores represent ranges rather than precise points X. Generalizability Theory A. Generalizability Theory - precision with which an individual’s score represents the generalized universe of the scores where different universes may exist B. More current than standard reliability considerations C. Scores represent 12

1. Samples from universe of admissible observations 2. Universe refers to .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences

a. conditions where examinees can be observed or tested b. conditions that produce a specific outcome or degree 3. Universe score – expected value of score over all admissible observations D. Different universes are presented by facet or dimension E. Generalizability Theory studied through 2 types of research 1. generalizability (G) – development of measurement instrument 2. decision (D) – data used to reach conclusions about individuals XI. Interpreting the Results of Measurement Procedures A. For HR, measurements result in 1. performance predictions 2. developmental actions 3. evaluations of behaviors B. All decisions are relative to norms 1. Norms assume normal curves (bell shaped distributions) 2. Normal curves allow comparisons by standard deviations from means a. Individuals scores are near (or far) from the mean of average score b. Preferred closeness or distance from mean influences HR decisions C. Quality of the HR decisions dependent on the 1. reliability of the initial data & 2. leads to the next consideration, accuracy and validity of decisions

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Discussion Questions 1. Why are psychological measures considered to be nominal or ordinal in nature?

Pages 112 - 114 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences Nominal measures are those measures that classify or catalogue. Nominal measures indicate differences in kind. Nominal measures do not have numerical properties. In other words, you cannot add, subtract, multiply, or divide nominal measures. You can use nominal measures to describe. For example, you can say nominally that this person has brown hair, is a graduate of ABC University, and is a member of the XYZ Organization. Nominal measures may be used to describe, classify, or catalogue groups, also.

Ordinal measures are those that classify, catalogue, describe, and rank order an individual by the classification, catalogue, or description. This rank order provides a measure of magnitude but does not allow numerical operations. The rank order does offer a degree of transitivity. For example, you can say this person has the brownest hair, is the smartest graduate, or is the most intense organizational member. Ordinal measures may be used to describe, classify, catalogue, and catalogue groups, too.

Psychological measures focus on the interrelationships between groups of behaviors.

These interrelated behaviors are called traits. Measurements of traits attempt to quantify through the use of scales, the existence of and the qualities of the traits. Hence, nominal scales may measure psychological traits by describing a person’s score for the attribute or trait of interest. For example, a person may be classified as an optimistic, conscientious, and intellectual person. An ordinal scale measurement for this same person may result in a measurement score indicating that this person is more optimistic than the last applicant, exhibits less conscientiousness than the desired candidate, but is smarter than the current job incumbent.

2. Is it proper to speak of the reliability of a test? Why? Pages 121 - 129 Within the context of HRM, tests are either procedures or psychometric instruments designed to measure or to assess knowledge, skills, or abilities that are related to the performance of jobs. With this as the frame of reference, the reliability of a test refers to the dependability or consistency of the test results. Specifically, HRM needs test results to lead to dependable outcomes for decisions based on the results. That said, the formal definition of test reliability is a test’s freedom from unsystematic measurement errors. The formal definition of measurement error includes the variation in results that are not related to the test. For example, errors may occur due to the participant’s inattention, to environmental causes, to outside influences, or to the test administrator’s inattention, misunderstanding, distraction, etc.

These errors are called random errors. The definition of the errors may change per test. A reliable test is either error free or performs with the error spread evenly over all participants.

3. Which methods of estimating reliability produce the highest and lowest (most conservative) estimates? Page 129

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All methods for estimating reliability are based on correlation coefficients and, therefore, their range of values will fall between the ranges of -1.0 to +1. Each method of reliability estimation considers different conditions that produce unsystematic changes in the test scores. Therefore, the reliability measures may be considered as more or less conservative or sensitive to unsystematic test score variance. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences When variance over time is of interest, computing a test-retest correlation is appropriate. The time should be long enough to account for any increase that may be due to practice. Generally, six months is sufficient for sensory discrimination, psychomotor tests, and some tests of knowledge. These reliability coefficients are called coefficients of stability.

For some tests, time is not available to collect test-retest data but alternate forms of the same test are available or different tests for the same content domain may be available. When the same content domain is tested, the alternate forms reliability can be checked by the coefficient of equivalence. When this method is adopted the two forms should be administered as close together as is possible with the first half of the group receiving one form first and the second half receiving the other form first.

When neither alternate forms nor time is available, a test’s internal consistency can be examined through the use of reliability estimates known as split half, the Kuder-Richardson KR20, or Cronbach’s coefficient alpha. The coefficient alpha is appropriate to use when items use scoring methods such as always, sometimes, occasionally, or never. Personality inventories are examples of these types of tests. KR-20 is appropriate when items are scored as right or wrong or by an all-or-nothing system such as with multiple choice tests. Split half estimates are conceptually similar to the alternate forms method with the data collected at the same time. It is best to choose the items for each half statistically (by random choice), but it may be easier to understand by dividing the items as even or odd or the first half relative to the second half.

4. Is interrater agreement the same as interrater reliability? Why? Page 128 Interrater agreement is similar to interrater reliability but does not have the same meaning. First, consider what intrarater reliability means. Intrarater reliability refers to the consistency with which one rater evaluates different ratees based on equivalent information.

Interrater reliability refers to the consistency with which different raters evaluate the same ratee (or a group of ratees) when given equivalent information. This approach is similar in concept to alternate forms reliability checks with each rater acting as an alternate form.

Conceptually then, interrater agreement refers to the perceived (calculated) systematic measurement (absolute agreement, consensus) while interrater disagreement refers to the unsystematic sources of error.

5. What type of knowledge can be gathered through the application of item-response theory (IRT) and generalizability theory (GT)? Pages 117, 118, 134, 135

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IRT explains the effect of individual differences on the behavioral responses to specific items. These differences per item can be graphed for easier comprehension. The graphs offer pictures of the item’s discrimination, the item’s difficulty, and the probability of guessing correctly by chance. IRT contributes to decisions surrounding the selection of items, to the reliability and validity of items, and to the revision and updating of items.

GT changes the focus of reliability from a focus on test scores to the possibility that test scores represent only one possible score from a universe of possible scores from a universe of all admissible scores from all possible test takers. GT allows raters to consider that there are .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences greater ranges of scores which reliably measure potential applicants. This allows raters to take a longer range view and to recognize that tests and test items require the collection of more data rather than more specific data.

6. What does the standard of error of measurement tell the HR specialist? Pages 131, 132 The standard error of measure is an estimate of the standard deviation of the normal distribution of scores that one person would receive if this one person took the test a large number of times (theoretically, an infinite number of times). An HR specialist finds the standard error of measurement useful in multiple ways. These uses include (1) whether the measures differ significantly when describing individuals, (2) whether an individual measure is significantly different from some hypothetical true score, (3) whether a test discriminates differently in different groups, and (4) the realization that test scores will reflect ranges of scores rather than absolute (exact) points.

7. What is scale coarseness? How can we address scale coarseness before and after data are collected? Pages 132 - 134 Scale coarseness may lead to errors in measurement predictions, specifically, systematic downward bias in the correlation coefficients. Scale coarseness may be said to exist when a continuous psychological concept is measured through a collapsed scale such as with Likert-type or ordinal items. For example, we have a tendency to assume that rating an attitude along a scale from 1 to 7 yields a maximum attitude measurement of 7 and a minimum attitude measurement of 1. However, attitudes may be greater (more intense, stronger) than 7 or could conceivably be absent (less than 1). To address scale coarseness before collecting data, you can make sure that the research design is as strong as it can be given the circumstances surrounding the research. For example, if an attitude scale is to be used, consider using a continuous, graphic-rating line rather than forced choice rating. Scale coarseness can be addressed after data is collected through the use of software designed to provide statistical correction.

8. What do test norms tell us? What do they not tell us? Pages 135 – 138 Generally, test norms tell you where a specific score falls relative to an average score for the test. Norms also tell you how many other scores for this test are near the average score and to the score of interest. Since scores represent performance for existing traits or attributes, norms allow you to compare one person to other people relative average performances.

However, normative comparisons are only as good as the person’s applicable membership in the normative group. In other words, there can be many normative groups and many normative comparisons but if the correct normative group is not used, the comparison may be meaningless.

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These comparisons do not make up for sampling inadequacies either. Norms do not tell you everything you need to know to make accurate decisions about people based on reliable test scores. You can improve the quality of the decisions by improving the reliability and by improving the norms upon which comparisons are drawn. One way to do this is to determine norms relative to the group characteristics pertinent to the decisions. This is done by taking raw .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 6 – Measuring and Interpreting Individual Differences scores, calculating percentile rankings, then statistically (through the use of constants) changing the percentile ranking to interval measures.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

Overview Chapter 7 deals with issues surrounding measurement validity. Chapter 7 also presents some of the procedures for determining the validity of individual differences measurements. Individual difference measurements derive meaning only to the extent that the measurements can be related to other psychological behaviors. For example, measuring motivation is meaningful only if the measurement predicts future performance. Validity then is important with regard to whether a test measures what it is designed to measure and how well this test measures what it is designed to measure. Test validity can be determined by examining the test’s content, its relationship to other measures of the same test constructs (concurrent validity), its predictive accuracy for future behaviors, and its ability to measure the psychological characteristic of interest (construct). The chapter also presents different strategies for conducting empirical validation studies. Concluding topics focus on the relevance of validation studies to the practice of HRM and the necessity of validation studies in adherence to laws surrounding the practice of HRM.

Annotated Outline I.

At a Glance A. Meanings of individual difference scores 1. Follow from relationships to other psychological & observable behaviors 2. Result from intentional validation studies 3. Influenced by reliability measures B. Validation issues 1. Does test measure what it intends to measure?

2. How well does test measure its intended aspect?

C. Types of validity approaches 1. Content 2. Construct 3. Concurrent 4. Predictive

1

D. Validation strategy considerations 1. Group differences .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

2. Range restrictions 3. Position in employment process 4. Test-predictor relationship E. Other validity approaches (may converge to yield better validation) 1. Validity generalization 2. Synthetic validity 3. Test transportability F. Validation efforts reflect legal adherence II.

Relationship between Reliability and Validity A. Simple definitions 1. Reliability is consistency, dependability 2. Validity is accuracy, truthfulness B. Why does HRM care?

1. Because, theoretically, a measure can be reliable but have no validity 2. With reliability, validity is enhanced, its limits clarified C. Examples 1. You could reliably measure surgical vocabulary, but be unable to accurately measure surgical skills.

2. You could reliably disassemble a firearm, but be unable to shoot a target.

D. Reliability is therefore a necessary measurement property but not the only important property for measures.

E. Reliability must be combined with validity.

2

1. When the reliability coefficient of a criterion is known, it can be statistically adjusted for unreliability.

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

2. This is called “correction for attenuation in the criterion.”

3. This process helps HRM account for more variance in measurements and increase and improve decisions based on the criteria measured by tests.

4. In other words, quality HRM decisions require knowledge of measures’ reliability and validity.

F. Caution with reliability coefficients: 1. Choose reliability statistic carefully.

2. Reliability statistic will influence magnitude of validity.

III.

Evidence of Validity A. Validation is a process evaluating criterion interrelationships. It is not a single measure.

B. Validation processes tell researchers 1. what is measured and 2. how well “it” (the criterion) is measured C. Validity is unitary concept 1. validity exists or not 2. evidence for it varies 3. exists as matter of degree D. Of interest & necessity is the accuracy of the inferences made about a person based on the reliability and validity of test measures.

E. To evaluate validity, there are 3 primary strategies 1. content-related evidence 2. criterion-related evidence

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3. construct-related evidence IV.

Content-related Evidence .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

A. Content-related asks whether the measurement procedure represents a fair sample of the universe of situations for the behavior of interest to happen.

B. To HRM Content-related validation is concerned with the measurement’s representation of the job.

C. An assumption then is that similar jobs involve similar performance domains.

D. Valid content measures reflect job performance.

E. Content-related measures become more difficult as jobs become more complex and abstract. Hence, it is appropriate to think of content-oriented test measures’ development.

F. Examples 1. Simple content (construct) - a typing test for administrative assistants 2. Complex content (construct) - predicting success of a film based on a screenplay or a novel.

G. Content-related legal precedent 1. Guardians Assn. of N. Y. City Police Dept. v. Civil Service Comm. of City of N.Y., 1980 2. True question is not if work content (construct) is measured but what class of content (construct) is measured H. To determine content-related validity, researchers must focus on test construction and not the inferences about the test scores.

1. Establish content evaluation panel 2. Calculate content validity index 3. Calculate substantive validity index 4. Conduct content adequacy procedure 4

5. Conduct Analysis of variance

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

I. For content-related validity, the primary goal is predicting future performance by describing existing scores. This means criterion behavior must be considered, too.

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Criterion-related Validity Evidence A. Criterion-related validity evidence asks whether a measurement procedure indicates that a behavior is present and may predict that a future behavior will occur.

B. In other words, criterion-related validity evidence tests the hypothesis that measurement scores are related to criterion performance.

C. There are two types of Criterion-related validity procedures.

1. Concurrent validity exists when a criterion measure exists at the same time as a predictor measure.

2. Predictive validity exists when a criterion measure becomes available after the point in time when the predictor measure is taken.

3. Concurrent & predictive validity differ by timing, context a. Concurrent – can you do the job right now b. Predictive – can you do the job in the future D. Criterion-related predictive studies are the foundation individual differences and are conducted by the following steps.

1. Measure candidates for job 2. Select candidates without using results of measurement procedure 3. Obtain measurements of criterion performance at later date 4. Assess the strength of the relationship between predictor and criterion E. Criterion-related predictive study issues include 1. Sample size - the larger the sample size, the greater the power (smaller samples can be accommodated statistically)

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2. Statistical power (Type II error) - rejecting null when null is false can increase with larger samples and with larger region for rejecting null .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

3. Null hypothesis rejection (Type I error) - usually set at .05 or .01 by determining a desired power and estimating a desired effect size as small, medium, or large by the correlation coefficients between the criteria 4. Magnitude of the effect (statistical significance and meaningfulness) can be predetermined as small, medium, large based on the correlation coefficients and is easier to achieve w/large sample a. When power and effect size specified, can use www.StatPages.net to determine needed sample size b. Larger sample needed for power, smaller sample ok w/larger effects c. With fixed samples & effects, changing alphas may help.

F. Other Issues for Predictive Studies 1. Acknowledge small samples & continue to collect data over time 2. Consider time between initial measure and criterion performance appraisal 3. Samples must be representative 4. Should include actual applicants who are motivated to do well G. Criterion-related Concurrent Study Validation Method looks at predictor data and actual performance concurrently or at same time.

1. Determine criterion (or criteria) 2. Collect successful employees’ criterion measures 3. Collect performance appraisals of successful employees 4. Compare relationship between criterion measure and appraisals 5. Choose new applicants based on closeness of scores to successful performers H. Criterion-related Concurrent Study Validation Method – may be more cost effective than traditional predictive validity study but it does not account for the effects of motivation & job experience.

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I. Criterion-related Concurrent Study Validation Method Issues

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

1. Appear useful for cognitive ability test measures 2. Are not interchangeable with predictive studies 3. Must consider situations surrounding the study and uncontrolled variables J. Issues for both Predictive and Concurrent Criterion-related Validity Studies 1. Sensitivity to random errors?

2. Dependably indicate differences?

3. Free from contamination?

4. Performance criteria must be collected independently of predictor criteria.

VI.

Factors Affecting the Size of Obtained Validity Coefficients A. Factors affecting obtained validity coefficients include 1. Range Enhancement a. validity will appear falsely high if the validation group is broader than the applicant pool b. example - validating with machinists, mechanics, tool crib attendants, and engineers but predicting for engineers only 2. Range Restriction a. Validity appears too low if either the predictor or the criterion are limited i. Direct range restriction - measures used to select prior to validation ii. Indirect range restriction - experimental predictors administered but not included in employment decision

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b. May also occur when predictor selection occurs at hiring and the criterion selection occurs while on the job

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

c. To interpret validity given range restrictions, apply appropriate statistic by determining i. If restriction exists for predictor, criterion, or a third variable ii. Whether unrestricted variances for relevant variables exist iii. Whether a third variable is measured or unmeasured d. To interpret validity given range restrictions where unrestricted variances are unknown, may use multivariate correction formula and/or the RANGEJ computer program 3. Position in employment process a. Variance is greater during selection b. Variance is restricted during later employment processes 4. Form of predictor criterion relationship a. Normal distributions are assumed b. Predictor & criterion relationships linear c. Column segmentation variance equal VII.

Construct-related Evidence A. Construct-related Validity Evidence focuses on the meaning of the trait and allows the interpretation of scores.

B. Construct-related Validity assumes that there is a nomonological network of interrelated concepts, propositions, and laws with regard to the behaviors relevant to the HRM decisions. In other words, the successful candidate or employee can be assessed by more than one trait.

C. Construct-related Validity Evidence Method 1. State hypotheses

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2. Define traits nomonologically 3. Ask test takers about their strategies .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

4. Analyze internal consistency of items 5. Consult behavioral domain experts 6. Correlate procedures 7. Factor analyze group of procedures 8. Conduct structural equation modeling 9. Consider scores’ discrimination 10. Demonstrate relationships 11. Analyze convergent & discriminant validity a. Convergent – multiple measures same construct b. Discriminant – differing from measures of other constructs VIII.

Cross-validation A. Defined – when scores from one sample accurately predict outcomes for other samples of same population or for the whole population.

B. Cross-validation is often assumed to exist & needs verification.

C. Cross-validation issue to address is the phenomenon of shrinkage.

1. Shrinkage occurs when weighted predictors from one sample are applied to another sample.

2. Shrinkage may be large i. when the initial sample is small ii. when test items are not relevant iii. when there are many predictors D. Cross-validation methods may be

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1. Empirical – .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

i. apply regression model to sample ii. apply same model to second sample 2. Statistical – adjusts multiple correlation coefficient as function of sample size and number of predictors E. Cross-validation comparisons 1. Empirical – costly and may not yield better results than statistical 2. Statistical – i. should be recalculated annually ii. numbers will reflect changes in values and changes to job needs IX.

Gathering Validity Evidence When Local Validation is not Feasible A. Small organizations with few positions cannot conduct full validation studies.

1. Small organizations can apply synthetic validity, 2. test transportability, & 3. validity generalization.

B. Gathering Validity Evidence 1. Synthetic validity – job analysis based 2. Test transportability 3. Validity generalization B. Synthetic validity 1. Job analysis based and infers validity for jobs 2. Offers legal acceptance 3. Offers feasibility

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures

4. Job Analysis Tool Examples a. Position Analysis Questionnaire (PAQ) b. General Aptitude Test Battery C. Test transportability – 1. Using a test developed elsewhere 2. Requires a. results of the other study’s criterion-related study b. results of test fairness c. documented job similarities d. documented applicant similarities D. Validity generalization – 1. Meta-analyses focused on testing the situational specificity hypothesis between variables 2. Meta-analyses are statistical comparisons of two variables across studies analyzes the variability of this relationship across studies E. Methods for Gathering Validity Evidence 1. Obtain validity coefficient for each study, compute the mean 2. Calculate the variance 3. Correct the mean and variance 4. Compare corrected standard deviation 11

5. For large variations, analyze moderator variables Discussion Questions .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures 1. What are some of the consequences of using incorrect reliability estimates that lead to overor underestimation of validity coefficients? Pages 139 - 142 Reliability estimates set the ceiling or upper limit for validity coefficients. Reliability coefficients may also set the lower limits or basement value for validity coefficients. This can be explained by understanding that validity represents the accuracy and the meaningfulness of measures of related behaviors while reliability coefficients represent relationships between two behaviors. In this case, behaviors may be thought of measured individual differences on some measures or the scores on tests. Another way to think about the behaviors is to think of them as predicted performance on a job versus actual performance on a job.

With this as the frame of reference then, two behaviors may appear to be and may actually be related but have no accuracy with regard to reality (reliable but not valid). The example offered by the text is that police officer positions appear to require higher skills than detectives but, in fact, do not. This can be explained by the measures used. The measures reliably measured police officer duties but did not reliably measure detective duties. Therefore, these reliability coefficients were very high but the corresponding validity coefficients were extremely low.

Another example to consider might be in the selection of sales representatives for technical products. A person may reliably (consistently) receive high scores for measures of product knowledge but be completely unsuccessful for closing sales contracts (very low validity).

However, these same individuals might consistently score high (high reliability) for technical knowledge and be very successful with post-sales support (high validity). These two scenarios bring home the point that reliability and validity are interdependent but that the correct types of reliability coefficients must be considered when trying to interpret corresponding validity coefficients. To determine the correct coefficients to use, consider the types of measurement instruments, the procedures used to collect the data, the types of decisions to be made based on the results, and the underlying constructs of the measurement devices.

2. Explain why validity is a unitary concept. Pages 141 - 142 First, for this consideration, unitary means a concept of wholeness represented by a numerical value. Next, validity is a unitary concept in that it exists or not (wholeness) and that the degree or existence of this concept can be represented by a numerical measurement.

Finally, the measurement may be calculated mathematically as a result of varying procedures.

The measurement of validity, therefore, will represent different types of evidence rather than different types of validity.

3. What are the various strategies to quantify content-related validity? Pages 142 - 145 12

Content-related validity is concerned with a test’s ability to accurately measure the intended domain of the test. There are at least four different strategies to quantify contentrelated validity. One strategy is to calculate a content validity index. This CVI requires the participation of an equal number of incumbents and supervisors. Both groups rate a set of test items as being essential, useful but not necessary, or not necessary to performance of the job .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures being studied. Using the two sets of scores, a content validity ratio is calculated. The CVI represents the overlap between the capability to do the job versus performance on the test. A second strategy is to calculate the substantive validity index (SVI). The SVI considers panel members ratings of items’ classifications to particular constructs. The SVI is an extension of the CVI calculation.

Two other strategies to calculate content-related validity are to review the content adequacy procedure and the analysis of variance approach. To calculate content adequacy, Likert type scales are used by panelists to rate the test items by their applicability to the constructs under consideration. The analysis of variance approach is similar to the content adequacy approach except that the panelists rate the items with only one construct in mind rather than all of the constructs in mind. For this approach, a sample size of approximately 50 people is required.

4. Explain why construct validity is the foundation for all validity. Pages 153 - 157 Content-related validity is concerned with a test’s ability to accurately measure the intended domain of the test. Criterion-related validity (both concurrent and predictive) considers the empirical relationship between a predictor variable and a criterion behavior. As such, neither provides a framework for improving the predictions of individuals’ performance.

Construct validity is specifically concerned with the improvement of these predictions and provides the basis for interpreting individual differences (measurement scores).

Construct-related validity starts with investigators stating a hypothesis with regard to the relationship between a score on a test (measurement) and expected outcome for a criterion (performance appraisal). These hypothetical predictions assume that the desired behaviors exist within a nomonological network. This network is a system of interrelated concepts, propositions, and laws interrelated with an observable set of behaviors. Following the formation of the hypotheses, predictive data is collected, analyzed, and compared to actual outcome data. Operational behavioral definitions must be very clear, raters and performers must understand the assumptions and expectations, and care must be taken with the collection of the data and the analysis of the data not to cause more error or to create conditions with procedural variance. Adequate construct-related validity will provide information with regard to the convergence of behavioral constructs and will identify areas of discrimination for the different behaviors.

5. Why is cross-validation necessary? What is the difference between shrinkage and crossvalidation? Pages 157, 158

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Cross-validation is necessary to account for changes in values, changes in jobs, and changes in people who are responsible for these jobs. Shrinkage is a statistical phenomenon that occurs when predictions about future performances are based on the measurements taken from a sample of individuals. For HRM, this means that when a population of interest is defined and a sample of people from the population provide initial decision-making data on multiple predictors, the corresponding multiple correlation between the predictors and the actual .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures criterion will decrease (shrink) for another sample from the same population. Shrinkage will be greater when the initial sample size is small, miscellaneous predictors are chosen, and when there are multiple predictors.

Shrinkage can be understood, controlled, and minimized by conducting cross-validation analyses. Cross-validation means that weights from one sample can predict the behavioral outcome of additional samples from the same population. Cross-validation can be completed in two ways, empirically and statistically. Empirical cross-validation can be completed by collecting data from two independent samples of the same population or, if the initial sample is large enough, by analyzing the data as if it came from two groups. Statistically, cross-validation can be completed by adjusting the multiple correlation coefficients by a function of the sample size and the number of predictors through the use of existing formulas. As it is not always possible to collect empirical cross-validation data, statistical procedures can be very useful.

6. What factors might affect the size of a validity coefficient? What can be done to deal with each of these factors? Pages 149 – 153 The size of a validity coefficient is a function of two variables, the predictor and the criterion. When sample sizes are small, there is an inherently larger sampling error. There also is a built in range restriction for the scores.

Some additional factors that affect the size of a validity coefficient are (1) the initial sample size, (2) a shotgun approach to test question inclusion, and (3) when the number of predictors increases. When sample sizes are larger, the probability that unique or random individual differences exist is spread more evenly over all the participants hence increasing the probability that true differences will be due to the behavior or construct of interest. The most straightforward way to deal with small sample sizes is to increase the number of participants in the sample. Another coping method is to acknowledge the inherent weakness of a small sample size and attempt to increase the available sample data over time.

When many questions or items are included in a test (measure) without consideration for their relationship to the criterion of interest, then the resulting validity coefficient may be smaller. To deal with this, over time, the test authors or developers should thoughtfully consider each item (question) before it is included and they should check each item’s performance, each group of items performance, and the test’s performance. This means checking and monitoring the respective reliability and validity coefficients. While larger samples generally are better, more test items are not necessarily better.

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Increasing the number of predictors may result in increasing the error variance within the sample and decreasing the validity coefficient. While not always true, larger samples or changing samples may increase the number of irrelevant factors present due to chance. This occurrence may be minimized by making sure that all sample participants are chosen randomly and are representative of the population and are in an initially large sample group.

7. Provide examples of situations where it would be appropriate and inappropriate to correct a validity coefficient for the effects of range restriction. Pages 150 – 153 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures When range restriction does exist or when the potential for range restriction exists, it may be classified as either direct or indirect (incidental) range restriction. The type of restriction will influence the corrective actions that may be taken. For example, when only the applicants who make it past initial screening are included in a selection sample, direct range restriction exists. Whether it would be appropriate to go back to the entire pool of applicants to collect sample data will depend on circumstances surrounding the process. For example, if it is possible that legal challenges may result or have been experienced in the past, the organization’s HRM may decide to include all applicants in the validation sample. If the positions involved are not subject to legal challenge, then a sufficient sample may be collected from applicants who get through the screening.

Indirect range restriction may exist when a predictor variable is applied to applicants but then is not used for selection decisions. For example, requiring all applicants to have a degree in a certain major but deciding to hire or to place a person based on interview impressions.

Indirect range restriction may also result in prejudicial or biased decision making. For indirect range restriction to be corrected it must be acknowledged and understood. In the interest of fairness, it should be addressed but in practice, the relative risk may not be perceived costly enough to warrant the correction. In this circumstance, acknowledgement may be the only corrective action deemed necessary. Interpretation of the respective validity coefficients should reflect awareness of both direct and indirect range restriction.

8. What are some of the contributions of validity generalization to human resource selection?

Pages 160 - 163 Validity Generalization (VG) is a meta-analysis of specific HRM variables across research studies. A meta-analysis is a quantitative literature review that considers the relationships between the same two variables across multiple studies, across employers, across regions, across time frames, and so forth. VGs shed light as to whether predictors and criterion use has broad applicability (generalizability) or is situation specific. VGs help HRM researchers better understand the applicability and the limitations of predictive and criterion variables. With the contributions of VGs, large organizations may be able to justify the use of test measures without having to conduct an additional validity study thus saving personnel expenses while still following the letter of the laws for HRM practices and making high quality selection decisions for the organization. For small organizations, the use of VGs makes it possible to implement tests that have been validated by other organizations for similar jobs.

9. What are some challenges and unresolved issues in implementing a VG study and using VG evidence? Pages 162 - 165

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One challenge to VG studies is that of job specificity within organizations both large and small. In this case, the need is considered as local (within). In other words, VG results may not apply to all jobs within an organization. Some legal challenges have resulted in VG evidence being considered inadequate to support the decisions. VG evidence needs to be included as part of a complete validity analysis that also includes data with regard to synthetic validity and test transportability. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 7 – Validation and Use of Individual Differences Measures Synthetic validity refers to the process of validating each job situation and its corresponding job elements based on a detailed job analysis. From this analysis, a combined validity or a synthesized validity coefficient is produced and used to assess the overall validity of the test, the procedures, the decisions, etc.

Test transportability is an accepted validity analysis when local validation is not feasible.

Test transportability means that a test developed and validated elsewhere is used by another organization. Test transportability is acceptable when the following conditions are met. There is evidence provided (1) for a criterion-related validity study, (2) for a test fairness analysis, (3) the degree of similarity for the jobs in the local and the validation organization, and (4) the degree of similarity between applicants in the local and the validation organization.

10. What are some of the similarities and differences in gathering validity evidence in large, as compared to small, organizations? Pages 160, 161, 165 Whether small or large, organizations must be able to substantiate that strong valid procedures exist to support their HRM decisions. For large organizations, the data may come from within the organization. For small organizations, the data may be the result of VGs completed across other organizations. Large organizations may choose to strengthen their HRM decisions by using VG results, too.

Regardless of organizational size, to support their HRM decisions, organizations must possess a thorough understanding of the necessary statistical processes and resulting validity coefficients with supporting reliability coefficients. That said, statistics alone are not enough.

HRM must consider the practicalities of their HRM policies along with evidence of thoughtful usage of statistical data. Statistical data supports the decisions of HRM but is not a substitute for thoughtful, deliberate decisions regarding the usefulness of individual difference data.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

Overview Chapter 8 Fairness in Employment Decisions presents considerations beyond the reliability and validity concepts discussed in Chapters 6 and 7. Employment fairness includes both individuals’ perceptions of and the further statistical analyses of employment decisions. Perceptions influence how willing employees are to accept and to demonstrate organizational human resource practices. These perceptions also influence the organization’s image beyond its workforce. Perceptions lead to organizational profit or to organizational loss. To statistically analyze HRM fairness, discriminant and predictive validity or predictor and criterion variables must be considered. While some existing research exists, the methodologies behind these analyses present both procedural and practical challenges and limitations. However, even with the limitations, a thorough understanding of employment fairness can lead to positive societal impact.

Annotated Outline I.

At a Glance A. When it is possible, selection measures need to consider individual and group differences by 1. Race 2. Ethnicity 3. Gender B. These differences typically analyzed through the examination of differential validity.

1. Subgroup validity coefficients C. More enlightened approaches consider differential prediction or differential bias.

1. Standard errors of estimate 2. Intercepts of subgroup regression lines D. One or both may occur at the same time, however, current research indicates that both occur at the same time on an infrequent basis.

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E. While measures may predict differences in performance per group, job performance needs consideration as the predictions may cause unfair discrimination when job performance information would not.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

F. When measures do not cause discrimination, adverse impact for protected groups must be considered to minimize legal challenges and to improve greater societal benefit.

II.

Introduction A. To this point in our study of HRM, appropriate HRM decisions have been influenced by & dependent upon 1. Laws 2. Decision systems utility (cost & benefit) 3. Processes 4. Test results and characteristics such as a. Reliability b. Validity B. What does fairness mean?

1. Treating all people alike, justly, equitably 2. Having no adverse impact on any group of individuals C. How do you determine fairness?

1. By analyzing the differential validity and predictive bias among groups 2. Must keep in mind that HRM decisions are based on individual differences measures.

3. Therefore, HRM decisions will have some discriminatory effects.

4. Fairness in employment decisions means then that HRM decisions make justifiable and wise discriminatory decisions.

D. Resources for guiding HRM fairness 1. Uniform Guidelines on Employee Selection Procedures (1978)

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2. Standards for Educational and Psychological Testing (1999) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

3. Principles for the Validation and Use of Personnel Selection Procedures (2003) 4. Computer program to explore decision making scenarios www.cudenver.edu/~haguinis/mmr E. Legal precedence guiding HRM fairness 1. Ninth Circuit Court of Appeals Officers for Justice v. Civil Service Commission of the City and County of San Francisco, 1992 2. Seventh Circuit Court of Appeals Chicago Firefighters Local 2 v.

City of Chicago, 2001 F. Fairness challenges 1. number subjects per group 2. unbiased criterion 3. comprehension of differences between a. differential validity & b. differential prediction 4. value systems 5. societal costs G. Historically, fairness research focuses include 1. Efficacy of selection decisions analysis of differential validity within subgroups 2. Accuracy of performance predictions analysis of mean job performances and differential validity 3

H. Critical Definitions 1. Adverse impact .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

a. when HRM selections for members of subgroups are less than 4/5 or 80% of group with highest selection rate b. may exist fairly, may exist unfairly 2. Differential Validity a. when significant difference exists between two subgroups’ validity coefficients b. & when correlations in one or both groups are significant 3. Single Group Validity a. when no significant difference exists between two subgroups’ validity coefficients b. & when significant difference does exist for one group’s predictor – criterion relationship III. Assessing Differential Validity - Basic Fairness Procedure 1. Divide data by group & subgroup Example: Managerial Jobs by a. Age b. Race c. Ethnicity d. Gender 2. Determine predictor & criterion correlation a. For all managerial jobs using i. Predictor = Test Score 4

ii. Criterion = Performance Rating b. Plot the relationship by gender .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

3. Analyze fairness implications a. Positive validity i. Predictor – criterion relationship is the same for both subgroups and elliptical in shape ii. Conclude fairness, validity, and legality supported b. Zero validity i. Predictor – criterion relationship is the same for both subgroups but circular in shape ii. Conclude no differential validity, no point to consider predictor c. Positive validity but adverse impact i. Predictor – criterion relationship shows differences per subgroups and elliptical in shape ii. Conclude valid and legal adverse impact but only if criterion necessity proven d. Positive validity combined groups, invalid for separate groups i. Predictor – criterion relationship is high for entire group but low or zero for either subgroup and elliptical in shape ii. Conclude unfair, invalid, illegal, and discriminatory e. Equal validity, unequal predictor means i. Predictor – criterion relationship is similar for both subgroups, elliptical in shape, but predictor means differ

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ii. Conclude with successful performance as foundation the use of different cut scores for decisions is fair, valid, and legal most but not all of the time f. Equal validity, unequal criterion means .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

i. Predictor – criterion relationship is similar for both subgroups, elliptical in shape, but criterion means differ ii. Conclude fairness questionable, validity questionable, but no adverse impact g. Equal predictor means, valid for nonminority only i. Predictor – criterion relationship differs for both subgroups, shapes differ, but valid for nonminority only ii. Conclude fairness questionable, validity limited, no adverse impact, but definite social implications h. Unequal criterion means and validity only for nonminority i. Predictor – criterion relationship differs for both subgroups, shapes differ, but valid for nonminority only ii. Conclude fairness questionable, validity limited, no adverse impact, but definite social implications 4. Basic Fairness Summary a. Perfect fairness may not be possible when HRM decisions applied to heterogeneous groups. b. Implementing different HRM decision systems may be empirically more fair but may be perceived with suspicion and lose any credibility. c. Additional Differential Validity Issues i. Very few well-controlled studies ii. Samples sizes existing research too small iii. Predictors not always relevant to criterion iv. Lack of unbiased, relevant, reliable criteria 6

v. Limited number of cross-validated studies IV. Assessing Differential Prediction & Moderator Variables .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

A. To completely study and understand fairness, differential predictions for subgroups must be considered.

B. Differential predictions focus on the slope of the differential validity coefficients.

C. Slopes are best understood by considering the regression line (line of best fit) between the predictor and criterion variances.

D. Regression line accuracy can be improved by considering the sub-groupings as additional variables or moderators.

E. Considering multiple moderators brings in the concept of Moderated Multiple Regressions (MMR) or R².

F. Interesting evidence for MMR research 1. Looking at differences over time and predictions of job performance a. Cognitive Differences i. Some research showed minorities tended to do less well on job than test scores predicted for Dutch, African-American, Hispanics b. Physical Ability differences i. Gender differences existed but varied by occupation considered c. Personality differences i. Gender differences found by occupation 2. This evidence indicates that for HRM, selection decisions would tend to hire more minorities rather than fewer 3. Assessing differential prediction & moderator variables problem to consider a. small sample sizes for minority groups 7

b. increase chance that procedure deemed unfair when procedure is fair .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

c. decrease statistical power 4. To avoid low MMR statistical power, carefully plan a validation study to include technical feasibility & credible results V. Further Considerations - Adverse Impact, Differential Validity, & Differential Prediction A. To reduce adverse impact 1. Improve minority recruiting strategy 2. Use cognitive abilities in combination with noncognitive predictors 3. Use specific cognitive abilities measures 4. Use differential weighting for the various criterion facets 5. Use alternate modes of presenting test stimuli 6. Enhance face validity 7. Implement test-score banding to select among applicants a. considers distributive justice for appropriateness of HRM testing decisions b. must remember that HRM tries to maximize profitability i. maximizing profits may lead to adverse impact ii. values based HRM may lead to decreased profitability c. Test-score banding methods i. Sliding-band method – considers range of test scores as equivalent given imperfect reliabilities for tests 1) maximizes both utility and social objectives 8

ii. Criterion-referenced banding method - considers range of test scores (predictors) and range of performance scores (criteria) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

1) also maximizes utility and social objectives iii. Strengths 1) Use of validity evidence 2) Bandwidths are wider 3) Inclusion relevant criterion data 4) Use of reliability information iv. Weaknesses 1) Possible legal issues 2) Possible violation scientific values 3) Possible violation intellectual values 4) Emotions associated w/Affirmative Action Programs 5) Conflict between goals of research and organizations 6) Measurement objections VI. Fairness - the Social and Interpersonal Context of Employment Testing A. Fairness requires professionalism, courtesy, compassion, & respect B. Perceived unfairness may lead to 1. negative organization impression 2. litigation challenges C. Fairness perceptions include 1. distributive justice - outcomes 2. procedural justice – processes to reach decisions VII. Fair Employment and Public Policy A. While not always popular, tests and measurements serve public in several ways 9

1. diagnostic – to implement remedial programs 2. assessing candidate qualifications .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

3. protection from false credentials B. Each generation must reconcile the meaning of equal employment opportunities C. Policies are not for or against tests and measurements.

D. Policies are about how tests & measurements are used.

Discussion Questions 1. Why is the assessment of differential prediction more informative regarding test fairness than an assessment of differential validity? Pages 176 – 180 Within HRM, test fairness includes individuals’ perceptions, statistical characteristics, and justifiably legal employment decisions. Test fairness means that all people who take an employment test perceive that the test measures everyone in the same manner, alike, justly,

and equitably. Fair tests accurately predict employment performance, are accepted by those affected by the test decisions, and withstand legal challenges. Test fairness also means that test measurements result in no adverse impact on any group of individuals.

Historically, attention to test fairness focused on the differential validity (predictive accuracy) of employment decisions based on test measurements. However, while conceptually appropriate and important, differential validity analysis does not completely explain many aspects of employment bias that may result in employment discrimination. To improve selection (test) measures, more thorough analysis of the standard error of estimates and the intensity of the errors (slopes and intercepts) is necessary. Differential prediction assessment provides this information. Standard error of estimates and the intensity of the errors may be understood through the use of regressions analyses (line of best fit regression lines) and the considerations of multiple or moderator variables (multiple correlation analyses).

2. Summarize the available evidence on differential validity and its relationship with adverse impact. What advice on this issue would you give to an employer? Pages 169 – 174 Differential validity research demonstrates that there can be various relationships between predictors and criteria. Because multiple relationships can exist, I would recommend that the employer first conduct a basic differential validity study. The basic steps to complete a differential validity study follows.

1. Divide data by group & subgroup Example: Managerial Jobs by 10

a. Age b. Race .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

c. Ethnicity d. Gender 2. Determine predictor & criterion correlation a. For all managerial jobs using i. Predictor = Test Score ii. Criterion = Performance Rating b. Plot the relationship by gender, age, race ethnicity Once the differential study is complete, I would recommend that the relationship plots be analyzed for implications and that employment policies be adjusted or confirmed based on the results. Additionally, I would recommend that the study be periodically updated to keep the policies as fair as is possible. Possible plot relationships and corresponding conclusions follow. a. Positive validity i. Predictor – criterion relationship is the same for both subgroups and elliptical in shape ii. Conclude fairness, validity, and legality supported b. Zero validity i. Predictor – criterion relationship is the same for both subgroups but circular in shape ii. Conclude no differential validity, no point to consider predictor c. Positive validity but adverse impact i. Predictor – criterion relationship shows differences per subgroups and elliptical in shape 11

ii. Conclude valid and legal adverse impact but only if criterion necessity proven .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

d. Positive validity combined groups, invalid for separate groups i. Predictor – criterion relationship is high for entire group but low or zero for either subgroup and elliptical in shape ii. Conclude unfair, invalid, illegal, and discriminatory e. Equal validity, unequal predictor means i. Predictor – criterion relationship is similar for both subgroups, elliptical in shape, but predictor means differ ii. Conclude with successful performance as foundation the use of different cut scores for decisions is fair, valid, and legal most but not all of the time f. Equal validity, unequal criterion means i. Predictor – criterion relationship is similar for both subgroups, elliptical in shape, but criterion means differ ii. Conclude fairness questionable, validity questionable, but no adverse impact g. Equal predictor means, valid for nonminority only i. Predictor – criterion relationship differs for both subgroups, shapes differ, but valid for nonminority only ii. Conclude fairness questionable, validity limited, no adverse impact, but definite social implications h. Unequal criterion means and validity only for nonminority i. Predictor – criterion relationship differs for both subgroups, shapes differ, but valid for nonminority only ii. Conclude fairness questionable, validity limited, no adverse impact, but definite social implications 12

With selection measure discriminant validity demonstrated (or not) and with employment policies reflecting the efforts to establish and maintain fairness, I would caution the individuals responsible for this aspect HRM to recognize that perfect .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

fairness may not be possible when HRM decisions are applied to heterogeneous groups.

Additional managerial challenges include the realty that implementing different HRM decision systems may be empirically more fair but may be perceived with suspicion and lose any credibility.

3. Discuss some of the difficulties and suggested solutions for conducting a differentialprediction analysis. Pages 177 - 180

To completely study and understand fairness, differential predictions for subgroups must be considered. These differential prediction analyses present several procedural and practical problems that researchers must attempt to address and to consider as they evaluate the results of the analyses. For example, there may be small sample sizes for minority group and for other subgroups. This reality may lead to the perception that a selection measure is unfair when the procedure is indeed fair. Small sample sizes also lead to decreased statistical power.

To avoid low differential prediction statistical power, HRM researchers must carefully plan the validation study to include technical feasibility & credible results and when weaknesses exist to acknowledge the limitations and strive to improve the data over time. Which strategy to use will vary based on practical considerations such as time, availability of participants, and access to statistical software. However, assuming that the practical constraints can be resolved, some of the available strategies include the following.

1. Improve the research design with larger sample sizes 2. Adjust statistically for small sample sizes 3. Implement a synthetic validity approach 4. Adjust the level of significance test that can be absorbed 5. Make reasonable predictions with regard to effect sizes 6. Use the power of random sampling 7. Use an extreme group design 8. Develop and use reliable measures 9. Use continuous criterion scales 13

10. Equalize sample sizes across subgroups by oversampling 11. Strengthen theory behind relationship of predictor to criterion .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

12. Monitor compliance with the research assumptions 4. Describe strategies available to reduce adverse impact. Pages 183 - 189

Adverse impact exists when HRM selections for members of subgroups are less than 4/5 or 80% of the group with the highest selection rate. This adverse impact may exist fairly or unfairly. Adverse impact may exist fairly when there are genuine or bonafide differences among subgroups. Unfair adverse impact may exist when differences are not valid and lack predictive performance validity. To reduce adverse impact several procedures can be implemented. These procedures include the following.

1. Improve minority recruiting strategy 2. Use cognitive abilities in combination with noncognitive predictors 3. Use specific cognitive abilities measures 4. Use differential weighting for the various criterion facets 5. Use alternate modes of presenting test

stimuli

6. Enhance face validity 7. Implement test-score banding to select among applicants a. considers distributive justice for appropriateness of HRM testing decisions b. must remember that HRM tries to maximize profitability i. maximizing profits may lead to adverse impact ii. values based HRM may lead to decreased profitability 5. When is a measure of individual differences unfairly discriminatory? Pages 189, 190 Individual differences measures are by definition discriminatory. These measures exist to make the best decisions about who can do the best job for the organization making the decisions. Measures are unfairly discriminatory “when persons with equal probabilities of success on the job have unequal probabilities of being hired for the job” (Guion, 1966).

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6. Provide arguments in favor of and against the use of test-score banding. Pages 184 - 189

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions

Test-score banding methods include the sliding-band method and the criterionreferenced banding method. The sliding-band method considers a range of test scores as equivalent given the imperfect reliabilities for test scores. This method maximizes both the utility of the decisions and the social objectives that the organization supports.

Criterion-referenced banding methods consider a range of test scores (predictors) and a corresponding range of performance scores (criteria). Decisions are made within the context of the corresponding ranges. This method also maximizes utility and social objectives for the organization.

Strengths of the test-score banding methods include the use of validity evidence, the options to change the bandwidths, the inclusion of relevant criterion data, and the inclusion of reliability information. Test-score banding is consistent with psychometric theory. Additionally, court decisions have accepted the use of test-score banding to justify employment decisions.

Weaknesses or arguments against the use of test-score banding include possible legal issues not yet determined by the courts, possible violation of scientific values, possible violation intellectual values, negative emotions associated with Affirmative Action Programs, conflicts between the goals of research and organizations, and finally, measurement objections by those affected by the decisions.

7. What are the advantages and disadvantages of implementing a criterion-referenced banding approach as compared to a predictor-referenced approach? Page 181, 185 - 187

The advantages and disadvantages of implementing a criterion-referenced banding approach relative to a predictor-referenced approach can be considered along four dimensions. These dimensions are the use of validity evidence, bandwidth, inclusion of criterion information, and the use of reliability information.

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With regard to the use of validity evidence, criterion-referenced banding allows the inclusion of comparisons based on performance data (criterion data) resulting in greater predictive accuracy. Sliding test bands alone do not. However, criterion data is not always available so sliding test bands may be the only banding approach available.

Criterion-based bandwidths are generally wider than those produced by test-bands.

Thus, criterion-based decisions appear to be more flexible and fair but may not be as accurate. The inclusion of criterion data may produce inaccurate results when the criteria are imperfect or inadequate to accurately reflect performance. Because reliability information can be included with criterion-referenced bandwidths, the corresponding validity coefficients are strengthened because both the predictor and the criterion reliability coefficients are considered.

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 8 – Fairness in Employment Decisions 8. What are some strategies available to improve fairness perceptions regarding testing?

Page 189 - 191

Perceived fairness for employment testing can be influenced by making sure that research surrounding the test includes strong scientific methodologies with the maximization of well-controlled studies and making sure that sample size is considered during the analysis (and, where possible is as large as is methodologically needed).

Another strategy is to make sure that the predictors are relevant to the performance criterion. Attempts should be made to make sure that the criteria not biased, are relevant, and reliable. And lastly, fairness perceptions can be improved when efforts are on-going to make sure that the tests and test measures are cross-validated.

9. Discuss some of the public policy issues that surround testing. Pages 190, 191

While not always popular, tests and measurements serve the public in several ways. These ways include 1. diagnostics – to implement remedial programs 2. assessing candidate qualifications 3. protection from false credentials.

Public policy will reflect each generation’s reconciliation of and management of equal employment opportunities. General public opinions will shift and change over time and based on factors such as the general economy, the need for greater or fewer employees, and changes in the workforce demographics. Regardless of these factors, though, employers and employees need to remember that policies are not for or against tests and measurements. Policies are about how tests are used and how measurements are used.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

Overview Chapter 9 Analyzing Jobs and Work focuses on the purpose, process, method, and application of a job analysis. The chapter begins with the definitions of job analysis terms, transitions to the results of the analyses (job descriptions and job specifications), and includes the empirical evidence for job analysis information’s reliability and validity. Next, the chapter presents various job analysis methods including their strengths, weaknesses, and appropriate situational applications. The chapter concludes with an introduction to the U. S. Department of Labor’s Occupational Network (O*Net) website (online.onetcenter.org). The O*Net content model is discussed as the replacement to the government’s Dictionary of Occupational Titles.

Annotated Outline I.

At a Glance A. For all work, individual jobs are the foundation.

B. Job analyses provide the documentation and information to complete jobs.

C. All work, therefore, is dependent on the results of job analyses.

D. Job analyses result in 1. Job Descriptions (work to be done) 2. Job Specifications (necessary personal characteristics)

II.

Introduction A. Changes in the world of work 1. Jobs – social artifact 2. Positions – too fixed 3. Skills, competencies – too obsolete 4. Roles – too unitary B. How should workers perceive themselves?

1. Self-employed contractors

1

2. Projects workers 3. Multiple teams member .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

C. Credit these changes to the impact of the internet and other technologies 1. Wireless communications 2. Email 3. Teleconferencing D. Job analyses remain relevant because 1. People must complete the work 2. People must understand the work to be done 3. Organizations must understand the knowledge, skills, abilities, and personalities of those who complete the work 4. Organizations must know how best to structure and administer the work E. Job analyses contribute to employment decisions in the areas of 1. Organization design 2. HR Management 3. Work and equipment design 4. Vocational & rehabilitation guidance III.

Terminology A. From the U. S. Department of Labor 1. Element – smallest unit observable work 2. Task – distinct activity for specific purpose 3. Duty – large segment of work 4. Position – one or more duties for 1 person 5. Job – group of positions similar duties

2

6. Job Family – group of jobs with similar worker characteristics

.

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

7. Occupation/vocation – similar jobs, different organizations, different times 8. Career – sequence of positions, jobs, occupations for 1 person during working life B. To define these terms, align method with purpose 1. Activities / attributes 2. General / specific 3. Qualitative / quantitative 4. Taxonomy-based / blank slate 5. Observers / incumbents or supervisors 6. KSAs / KSAOs 7. Single job / multiple jobs comparisons 8. Descriptive / prescriptive IV.

Defining the Job, describing the job A. To describe or to define a job is to determine 1. Job Title – for identification & reporting 2. Job Activities & Procedures tasks, materials, machinery, interactions, supervision 3. Working Conditions & Physical Environment heat, lighting, noise, indoor/outdoor, hazards, office space 4. Social Environment solitary work, group work, interactions 5. Conditions of employment

3

hours, wages, benefits, opportunities for promotion V.

Job Specifications .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

A. Job specifications may or may not equal job descriptions B. Job Specifications define the minimums necessary to perform job 1. Minimum qualifications: MQs 2. May be used as guidelines for recruitment, selection, placement, development 3. May be included in Job Descriptions 4. May be separate documents C. Minimum Qualifications 1. must be fair, equitable, valid, and reliable 2. development methodology: a. Develop tasks list & KSAs for job b. Identify group of Subject Matter Experts (SMEs) c. Separate groups of SMEs d. SME groups rate the tasks & KSAs e. SMEs meet to give opinions f. Job Analysts produce MQ profiles g. SMEs describe barely acceptable employee & revise MQ profile as needed 3. reliability & validity a. reliability -task data shows higher reliability than work data b. analysts show higher reliability ratings than incumbents 4

c. validity - performance accuracy d. validity ratings harder to quantify .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

e. the greater the descriptive data, the higher the validity VI.

Reliability and Validity of Job Analysis Information A. Reliability 1. reliability - task data shows higher reliability than work data 2. analysts show higher reliability ratings than incumbents B. Validity 1. validity - performance accuracy 2. validity ratings harder to quantify 3. the greater the descriptive data, the higher the validity

VII.

Obtaining Job Information, conducting job analyses A. Direct observations of job incumbents by analysts B. Performing & documenting the job by analysts C. Both assume: 1. job is stable over time & situation 2. observations do not distort the job D. Neither are appropriate for analytical jobs E. Functional Job Analyses (FJA) are useful for analytical jobs, produce coded jobs 1. what worker does, what work gets done 2. FJAs contain a. Position – job title b. Duty - general responsibility

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c. Task - exactly what gets done d. What – to/for whom, to/for what .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

e. Why – purpose of action f. How – tools, instructions g. Worker Functions 3. FJA codings

a. Worker functions 0 Synthesize 1 Coordinate 2 Analyze 3 Compile 4 Compute 5 Copy 6 Compare b. People functions 0 Mentor 1 Negotiate 2 Instruct 3 Supervise 4 Divert 5 Persuade 6 Speak-signal 7 Serve 8 Take instruction c. Things

6

0 Set up 1 Precision 2 Operate, control 3 Drive 4 Manipulate 5 Tend 6 Feed 7 Handle .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

4. FJA values a. can be tracked for changes over time b. can be valued for compensation c. can be evaluated for training needs d. can determine education levels e. can be objective rather biased F. Interviews 1. Questions should a. be related to purpose of analysis. b. be clear & specific. c. not lead to implied answers. d. not indicate socially acceptable answers. e. not ask for information that interviewee would not logically have. f. not ask for intimate information.

2. improve when a. interview several job incumbents b. have several interviewers conduct same interview with same interviewees c. have several interviewers conduct interviews with different incumbents d. conducted over time e. interviews are conducted over varying situations G. SME Panels 7

1. May include up to 10 – 20 % of job incumbents, supervisors 2. Should represent race, gender, age, location, culture, shift, & situations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

3. Openly discuss – best, good, & worst characteristics per position 4. Need to consider a. training needs b. necessary KSAOs H. Questionnaires 1. Task inventories & checklists 2. Strengths / weaknesses a. Can be administered to large groups b. Can collect quantifiable data c. May be more cost effective d. May be too expensive to develop unique questionnaires e. May be subject to misunderstandings 3. Professional Questionnaires with empirical support a. Position Analysis Questionnaire (PAQ) i. more behavior oriented than task oriented ii. uses statistical analyses for objectivity iii. 194 job items or job elements, 5 categories a) information input b) mental processes c) work output d) relationships with other people e) job context 8

iv. limitations a) better suited to blue collar manufacturing jobs .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

b) behavioral similarities may mask task differences c) requires college level reading ability b. Fleishman job Analysis Survey (F-JAS) i. Ability-requirements taxonomy ii. 21 cognitive iii. 10 psychomotor iv. 9 physical v. 12 sensory/perceptual vi. 9 interactive/social vii. 11 knowledges/skills/abilities c. Critical Incidents – anecdotal data i. what led up to the incident and the context ii. effective and ineffective actions that occurred iii. consequences actual, perceived, possible iv. employee situational control VIII.

Other Sources of Job Information and Job Analysis Methods A. Job Analysis Wizard (JAW) 1. Developed by Lucent Technologies 2. Includes thousands of different work elements 3. Based on broad work- and worker-related dimensions 4. Uses fuzzy logic to determine how new knowledge fits with existing job knowledge

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5. Automates the entire job analysis process B. Personality Assessments as Job Analysis Method .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

1. Interest is in personality as an indicator of job performance 2. Frequently used personality assessment devices a. NEO Job Profiler based on the Big 5 b. PPRF (personality related position requirements form) C. Strategic or future-oriented 1. May adapt existing job analysis methods 2. May develop new tools 3. Needs may be identified by a. Consultants b. Steering Committees c. Outside support firms d. Current organizational members D. Competency Modeling 1. Focuses on broad characteristics of workers rather than jobs 2. Includes full range of KSAOs 3. Some vagueness with regard to definition of competency 4. May conceive competency analyses along several dimensions a. Investigation method, data collection b. Descriptors c. Links to business goals d. Reliability, validity 10

e. Criteria f. Research process documentation .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

IX.

Interrelationships Among Jobs, Occupational Groups, and Business Segments A. Basic challenge is how to group jobs for effective organizational performance B. Important for validation, appraisal, promotions, career planning C. May look for similarities and for differences D. May use enterprisewide resource planning software vendors 1. PeopleSoft 2. Oracle 3. SAP

X.

Occupational Information – From the Dictionary of Occupational Titles to the O*NET A. Dictionary of Occupational Titles 1. first published in the U. S. in the 1930s by the Department of Labor 2. last published 1991 & included more than 12,000 jobs B. With the development of the internet, the Department of Labor sponsored 1. Occupational Information Network resulting in the O*Net 2. O*Net a. is job specific b. does not allow comparisons for similarities or differences 3. O*Net development is ongoing 4. O*Net information categories a. Experience b. Worker requirements c. Occupational requirements

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d. Occupation-specific requirements e. Worker characteristics .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

f. Occupational characteristics

Discussion Questions

1. Describe some of the choices that need to be made in deciding how to analyze jobs and work.

How would you choose an appropriate technique in a given situation? Pages 196, 197 Before deciding how to analyze jobs and the work that needs to be completed, you need to decide on the purpose(s) and use(s) of the information. Purposes and uses may be grouped into four major categories: organization design, human resource (HR) management, work & equipment design, and other. Organization design includes workforce planning and employee role definition. HR management covers job evaluation, recruitment, selection, placement, orientation, training & development, appraisals, promotions & transfers, career path planning, and labor relations. Methods improvement, safety, engineering design, and job design are the areas within work and equipment design. Other job analysis uses include vocational guidance rehabilitation counseling, job classification systems, and HR research. Once the purpose(s) is(are) understood, you can proceed to choosing the best job analysis method.

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Keep in mind that there is no one best job analysis method per situation and that the situation specific contingencies and interactions must be considered. However, assuming that these aspects are acknowledged during the decision making process, the following are examples of potentially correct job analysis choices.

Activities or attributes – If activities are task oriented, direct observations by analysts and descriptive interviews with incumbents are appropriate. If better descriptions of the individuals who succeed in these jobs are needed, then in-depth interviews with incumbents, professionally developed questionnaires and the administration of personality traits assessments (NEO-BF5, PPRF) of successful performers are appropriate.

General or specific – Standardized analysis tools may be appropriate when general information is needed. Collecting analysis information by subject matter experts and from successful incumbents may be more appropriate when detailed information (such as that needed for preemployment assessment) is required.

Qualitative or quantitative – Qualitative analyses are appropriate for planning purposes.

Quantitative analyses are better for cross job comparisons.

Taxonomy-based or blank slate – The Position Analysis Questionnaire and the Fleishman Ability Requirements Scale are appropriate for general work descriptions that apply to many different jobs. Subject matter experts, trained observers, and job incumbents are better sources for detailed job specific information.

Observers, incumbents, supervisors – When needs indicate and money and time permit, the best job analysis approach may include the collection of information from multiple sources and .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work then checking that information for consistency and accuracy.

KSAs or KSAOs – When information about knowledge, skills, attributes, and other characteristics are needed about specific jobs, the O*Net may be a good source. The PAQ, the F-JAS, and JAWS are other methods to consider. Competency modeling also may be appropriate.

Single job or multiple job comparisons – For a new job, conduct the analysis based the desired outcome(s). When considering one job relative to another or to more than one job, analyze the single job first then look for similarities and differences to the comparison jobs.

Descriptive or prescriptive – If the focus is on an existing job then use a descriptive job analysis.

If the focus is futuristic, then relate the analysis to the job’s strategic purpose as in its relationship to the organization’s strategic plan and business goals.

2. Develop an outline for a job analysis workshop with a panel of subject matter experts.

Pages 195 200, 205, 206, 214 I. Welcome & Introductions of Participants II. State of the Organization Address by Chief Executive Officer, Chief Personnel Officer, Workshop Sponsor III. Description of Workshop’s Goals (assume major revision to business plans) A. Describe Organization’s Job Analysis needs 1. Current operations – need to update job analyses 2. Future operations – need to complete analyses for new jobs B. Summarize previous job analysis methods – C. Teach new job analysis method D. Present the new jobs analysis results IV. Divide into groups/teams by jobs A. Existing jobs to be updated B. New jobs to be documented C. Each group to include 1 to 3 SMEs, 1 to 3 representatives from departments involved, 1 to 3 representatives from HR V. Provide copies of existing job analysis information per job, copies of existing business plans, copies of new business plans 13

VI. Review existing organization job analysis methods VII. Present new job analysis method – use relevant job to this organization’s SMEs .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work VIII. Divide into small groups to determine the best job analysis method to use per assigned job IX. Meet as large group to review each group’s decisions, to answer any questions, to clarify any points of confusion X. Break into groups to complete the analyses XI. Reconvene to present resulting job descriptions and job specifications XII. Allow discussions and commitment to new job analyses, agree on follow-up dates

3. Your boss asks you to incorporate personality characteristics into job analysis. How would you proceed? Pages 211, 212 The first decision I would need to make would be to decide whether direct decisions about specific jobs are involved. The next decision I would need to make is whether inferences about the individuals completing this job are involved. From these decisions, I need to clarify whether existing or future jobs are the focus. For existing jobs with incumbents in the positions, I could use the NEO Job Profiler to determine the Big 5 personality traits for successful performers, average performers, and for those who do not meet performance expectations.

The Big 5 personality traits include conscientiousness, agreeableness, neuroticism, openness, and extraversion. For the inferential personality decisions, I might use the Personality-Related Position Requirements Form. The PPRF uses the Big 5 and within each of the 5 factors, asks SMEs to infer the relevance of 12 additional personality dimensions. These 12 dimensions include general leadership, interest in negotiation, achievement striving, friendly disposition, sensitivity to interest of others, cooperative or collaborative work tendency, general trustworthiness, adherence to a work ethic, thoroughness and attentiveness to details, emotional stability, desire to generate ideas, and tendency to think things through. The complete the incorporation of personality characteristics into job analysis, I would also compare the personality information to the incumbents’ appraisals and to traceable organizational outcomes, for example, increases in profitability, new customers, new contracts, additional sales, cost savings, and new employees recruited.

4. What are the similarities and differences between competency modeling and job analysis?

Pages 194, 197, 213 Competency modeling is a worker-oriented form of job analysis. It tends to take a big picture approach to analyzing the people who hold or who will hold the jobs under consideration. Competency modeling can be compared to job analysis along 17 variables.

These variables follow along with an indication as to when competency modeling is more (or less) rigorous.

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1. Investigation method, data collection – less 2. Descriptor content type - less .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work 3. Descriptor content development procedure – less 4. Descriptor content detail – less 5. Business goals & research links – more 6. Descriptor content review – less 7. Descriptor content ranking – less 8. Descriptor results reliability – less 9. Criteria retention – less 10. Research process documentation – less 11. Core competencies focus – more 12. Technical skills focus - less 13. Organization fit and job match – more 14. Values and personality orientation – more 15. Content (face) validity – more 16. Training & development applications – more 17. Selection & decision applications –less

5. You have been asked to conduct a job analysis for astronauts working on the international space station. Which technique(s) might be most appropriate in this situation and why?

Pages 202 - 214

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This job analysis would be a “blast” to complete. Sources for job information include existing astronauts and former astronauts as job incumbents and as subject matter experts.

There are video tapes which can be observed by job analysis professionals. There are the engineers and scientists, administrators, and trainers who can consult and provide additional information and opinions. Because astronauts require extensive training and education beyond bachelor degrees and because the astronauts represent significant investments of many parties and because the jobs are extremely risky, it is also appropriate to conduct personality characteristics analyses, physical fitness skills job analysis, and interpersonal skills relevant to the jobs. Questionnaires could be used by both current and former astronauts. Interviews would be appropriate to gather information considered important to the jobs. Strategic analyses are appropriate as the work expected of astronauts will change based on technological advances and actual work experiences.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 9 – Analyzing Jobs and Work

6. Discuss some of the special problems associated with conducting strategic or future-oriented job analyses. Pages 212, 213 By definition, strategic or future-oriented job analyses are guesses, hopefully best & accurate guesses, but guesses nonetheless. These job analyses can be improved through the thorough understanding of competency modeling and, when appropriate for the situation, through the use of traditional job analysis methods. The particular challenge is in knowing or perceiving which method will yield the most useful results. Additional challenges surround the sources of information and the motivations driving the strategic job analyses. For example, steering committees, boards of directors, consulting firms, and existing employees may recognize and request strategic hob analyses. The probabilities are not high that all of these sources will agree or that they will have the same levels of understanding. With these types of situations the job analyses may use an analysis approach focused on strengths, weakness, opportunities, tasks. These results can be tempered with a subsequent utilitarian analysis of the potential risks and benefits attached to these potential jobs.

7. Go to the O*NET Web site (http://online.onetcenter.org). Develop a profile of five skills or abilities, and find occupations that match it. Pages 214, 215 Answers will vary by student or by person completing the profiles. The procedure to receive the corresponding occupations follows.

1. From the online.onetcenter.org page, click the Skills & abilities link 2. For each of the six skills & abilities categories, click the items which apply to you Skills & abilities profile categories Basics Complex Problem Solving Resource Management Social Systems Technical 3. Click the Go.

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4. Receive the occupations relevant to your choices. Note that beside the choices are indications as to whether these positions are currently in demand and need people to fill the jobs.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

Overview Strategic Workforce Planning, Chapter 10, deals with the reasons and processes for the systematic use of human resources within organizations. Strategic Workforce planning includes the documentation of existing talents of employees within an organization and identifies employees whose skills enable them to fulfill other organizational positions. This documentation is referred to as the Talent Inventory. SWPs also predict the needs for future employees. This prediction is called a HR Forecast. SWPs work within the context of on-going business plans and are subject to frequent revisions. SWP effectiveness increases when the accuracy of the forecasts is compared with organizational outcomes. The ultimate goal of any SWP is the most efficient use of people within the organization.

Annotated Outline I.

At a Glance A. Workforce planning 1. Talent inventories 2. HR Forecasts a. Supply b. Demand 3. Control and evaluation B. Influences 1. Recruitment 2. Selection 3. Placement 4. Performance management 5. Training and development C. Goal – effective use of employees within the organization

1

II.

Introduction A. Society is challenged to use human resources judiciously. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

1. Specialized talent needs 2. Locating experienced talent 3. Following employment laws 4. Rightsizing an organization 5. Developing talent 6. Improving productivity B. Businesses remain challenged to develop workforce plans to match business plans.

III.

What is Strategic Workforce Planning?

A. Introduction 1. Assessment current Employees 2. Plan to find new employees 3. Development of all employees 4. Part of organizational goals B. Talent Inventory – current employee KSAOs and assignments C. Forecasting Workforce Supply and Demand – predicted needs and availability D. Workforce Demand – competition within the organization and from competitors E. Control and Evaluation – comparing the availability of resources, the success of employees, and relative costs to benefits F. Strategic Business and Workforce Plans 1. Levels a. Strategic i. long range in scope

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ii. heavy resource commitment iii. repetitive rather than fixed .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

b. Operational i. day to day plan ii. receptive but resistant c. Tactical i. may be forced by outside changes ii. may be result of strategic changes 2. Conventional Planning Process a. Define organizational philosophy b. Clarify organization identity at all levels c. Determine strengths & weaknesses d. Design the structure e. Determine the strategy(ies) f. Implement the strategies 3. About Business and Strategic Plans a. Strategies are competition plans b. Plans are ways to manage the future c. Plans lead to: i. More successful outcomes ii. Greater sense of control iii. Clarified organizational objectives iv. Improved organizational management 4. Values Based Planning Process (an alternative) 3

a. Define basic, fundamental values of the company b. Identify management practices/policies support these values .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

c. Determine what company does better than competition d. Arrange delivery products or services e. Manage the organizational values 5. Benefits of Planning a. Focus on & plan for growth b. Changes emphasis from cost cutting 6. Costs or Risks with Planning - may lock or freeze an organization 7. Workforce Plans Relationship to Business Plans a. Focuses on the “people” impacts of any major changes b. Must maintain day-to-day operations c. Must be prepared for future operations IV.

Talent Inventory A. A Talent Inventory is an organized database of skills, abilities, career interests, & experience of an organization’s current workforce.

B. To develop a Talent Inventory, organizations must answer 1. Who to include 2. What information per person needs to be known 3. How to collect employee information 4. How to record & store employee information 5. How, to whom, and when to report employee information 6. How often to update employee information

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7. What security and privacy issues must be addressed 8. Will talent information be part of an overall Human Resource Information System (HRIS) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

C. Typical Talent Inventory Contents 1. Current position 2. Previous position(s) 3. Other significant work experience 4. Education, continuing education 5. Languages & international experience 6. Training & Development programs 7. Community or industry leadership 8. Current & past performance appraisals 9. Disciplinary actions 10. Awards received D. Talent Inventories must work within the context of supply & demand 1. What the organization has or can develop 2. Where Human Resources need to be added &/or replaced 3. What is availability of external workforce 4. What other pressures does the talent face (consumer behaviors, technologies, general economy) E. Sources for External Workforce Supply Information 1. Bureau of Labor Statistics 2. National Science Foundation 3. Department of Education 4. Public Health Service 5

5. U. S. Employment Service 6. Local Chambers of Commerce .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

7. Area Universities, Colleges, Technical Schools 8. Major employers in a given region 9. Professional organizations F. Sources for Internal Workforce Supply Information 1. Talent Inventory 2. Department / Division Managers 3. Past HR turnover records 4. Industry growth projections 5. Hiring needs discussions with education institutions G. An important aspect of Internal Workforce Supply Information is 1. Management Succession Planning – growing executives from within 2. GE & IBM procedures used as models a. Line supervision identifies & maintains development information on the candidates b. HR administrates the plan within the organization c. Committees review the candidates d. Candidates receive rankings by the committee e. Candidate career paths are directed and encouraged by the committee H. Chief Executive Officer Succession planning is equally important but not as common.

1. Organizations must decide a. To promote from within or bring in outside talent 6

b. To follow industry standards for selection or to use the organization’s preferences c. What will the repercussions be if an outsider is brought in .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

d. What will the repercussions be if promote from within

2. Failing to plan for CEO succession may cause an entire organization to fail.

3. Making the wrong CEO decision may lead other Senior Executives to leave.

V. Workforce Demand A. Workforce demands analysis considers 1. Identifying the critical business factors for each organization a. Dollar volume sales b. Tons of products c. Numbers of students 2. Knowing the history of factors relative to existing employees 3. Computing productivity ratios 4. Determining business trends 5. Adjusting trends historically and futuristically 6. Projecting trends impacts on target hiring timeframes B. Comprehending demands important to retention and to development of employees VI. Control and Evaluation A. Monitoring Performance relative to evaluation criteria and costs 1. Short-term objectives & evaluations 2. Mid-term objectives & evaluations 7

3. Long-term objectives & evaluations B. Evaluation criteria and costs .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

1. Turnover 2. Recruiting 3. Salary 4. Salary to profit ratio 5. Benefits C. Time Horizons 1. WPs vary in specificity per the length of the planning period 2. Monthly plans will be more detailed than will 5 year plans 3. Rules for planning period lengths: a. Provide adequate time to make adjustments as needed b. Planning should relate to other organizational planning activities 4. Multiple HR WPs may be needed to support various BPs D. Responsibility for Workforce Planning 1. Every line manager should participate 2. Every staff manager 3. All business plan participants should review and participate as needed 4. Participants from every level of the organization should participate Discussion Questions 1. Contrast the conventional approach to strategic planning with the values-based approach to developing strategy. Pages 219 – 221

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Strategic planning determines the way an organization competes for business, customers, clients, or profits. Traditional strategic plans focus on innovations, quality, speed, or costs. Traditional plans increase the probability of success as the planning helps an organization manage change. These plans require that organizations define their objectives, establish their performance goals, and control their operations. Strategic plans tend to be long-range in perspective and help an organization continue to grow.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning Values-based strategic planning focuses on the human aspects of an organization and on the fundamental beliefs of the organizational members. Focusing on beliefs and values and operating the organization by these standards allows an organization to concentrate the best way to operate day-to-day. Values-based planning then is short-term in nature but is believed to contribute to long-term success. When clients, customers, patrons, and supporters recognize a values-based organization, they are more likely to continue doing business with the organization, to encourage others to do business with the organization, and to provide recommendations and support for the operation. This loyalty contributes to organizational growth.

2. How are workforce plans related to business and HR strategies? Pages 222 – 224 Business plans focus on an organization’s competition and service goals. To accomplish these goals, organizations must have human resources to complete the work of the plans.

Human resource (HR) plans parallel the business plans and support the business goals. These plans do not guarantee organizational success but do increase the probability that the organization will reach its goals. Workforce plans are the specific HR plans developed to support the business plans. Workforce plans can be immediate (day-to-day) operations, mid-term (2 to 5 years in scope), and long-term (5 or more years). For every business plan, there should be a corresponding HR Workforce plan. Workforce plans need to consider existing employee skills and talents, forecasted needs for skills and talents, and competitive demands on employees internal and external to the organization.

3. Describe the five features that characterize high-performance work practices?

Page 223 High-performance work practices typically include five features. These features follow.

1. Allow employees more responsibility by flattening the organizational structure. This means that levels of middle management positions are minimized.

2. Encourage line managers to act as human resource managers.

3. Develop the organization as a continuous learning organization.

4. As much as possible and is feasible, grant employees autonomy to make organizational decisions.

5. Link employee performance measures to organizational financial performance.

4. How might the four components of a WP system apply to a hospital setting? What determines specific workforce needs in various areas? What programs might you suggest to meet such needs? Page 218 - 220

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The four elements of a WP system include a talent inventory, a workforce forecast, an action plan, and the procedures for control and evaluation of the WP. The WP should be an integrated system responsive to strategic & tactical business plans, human resource strategies, forecasts of workforce supply and demand, fluctuations in the labor market, changes in workforce requirements, and adjustments to organizational action plans. Effective WPs .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning consider short-term, mid-term, and long-term needs and demands on the organization’s HR needs. WPs must be responsive to the organization’s on-going business plans.

These aspects of a WP system might apply to a hospital setting in the following ways.

First, the hospital must determine its business plan. For example, will the hospital specialize in its medical services or will it be a general services hospital? Will the hospital serve local residents only or will it strive to serve regional and national patient needs? Will the hospital become a teaching hospital or a research hospital? Will the hospital have to compete with other hospitals for its patients? What are the typical hospital needs for the majority of available patients? How will the majority of patients pay for hospital services? What do other hospitals typically charge for services?

Next, with the answers to these questions in hand, a WP needs to be developed to consider the HRs needed to begin operations, to sustain operations, and to grow the operation. HRs needed to administrate and to provide medical care must be determined. Within these broad categories, specialties need to be identified. Within the specialties, the WPs need to address immediate needs, near-term needs, and long-term needs. The WPs must address competition for HRs, the length of time & cost to recruit, training needs, and typical attrition rates.

Additionally, hospital WPs must be sensitive to changes in patient demographics that could impact the hospitals business plans and at the same put varying pressures on the WPs. To go about developing these WPs, I would recommend that hospital executives and investors evaluate census data, communicate with government demographers, consider forecasts by the Bureau of Labor Statistics, establish relationships with university directors, consider other hospitals providing services to the same patient population, and talk with the hospital’s community planners. After compiling the information and comparing the results to the hospital’s business plans, I would organize the WPs by short-term (within 5 years), mid-term (6 to 10 years), and long-term (10 to 20 years). As hospitals tend to be complex and large, the plans need to be detailed but flexible with frequent evaluations to make sure that the financial support can be sustained while continuing to provide and improve hospital services.

5. Why is WP especially necessary in a downsizing environment? Pages 230 – 233

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To downsize an organization is to terminate (lay off) employees or to eliminate positions within the organization. Downsizing may occur as a result of decreased demand for products or services. Downsizing also may occur as a result of an organization redefining its business goals.

Regardless of the reason, all downsizing represents organizational change and may represent reactions to changes both forced and unforced. High quality WPs increase the probability that an organization will keep necessary talent and will develop competitive talent regardless of the changes faced by the organization. Successful WPs identify where talents do not exist and must be added to continue the organization’s survival. These WPs identify organizational weaknesses, strengthen organizational competencies, and increase the return of investment training expenses for an organization. Additionally, effective WPs contribute to employee perceptions of organizational commitment to HRM and increase employee commitment to the organization by sustainable performance. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 10 – Strategic Workforce Planning

6. Why are forecasts of workforce demand more uncertain than those of workforce supply? Pages 225, 226, 230, 231 Forecasts of workforce demand are more uncertain than workforce supply because the demand represents an estimate or a judgment about individuals who will be needed whereas the supply represents numbers based on evidence. Supply numbers can be determined based on data internal to the organizations and can be supplemented or adjusted based on data collected by federal agencies such as Bureau of Labor Statistics, the Department of Education and Training, the Census Bureau, and the Department of Labor. There are also state agencies to turn to for supply information, as well as, universities and colleges. Workforce demand estimates may be rendered inaccurate due to local, regional, national, and global economic changes. Workforce demands are projected based on business plans. Business plans are subject to frequent and sometimes drastic changes, thus rendering the workforce demand estimates inaccurate or out-of-date. Other factors that influence workforce demand estimates include duration of planning period, quality of planning data, and the degree with which the workforce plan is integrated into the business plan.

7. The chairperson of the board of directors at your firm asks for advice on CEO succession. What practices or research results might you cite? Pages 226 - 229 I would suggest that the Chairperson is very wise to consider CEO succession before it becomes necessary. The evidence I would refer to is that organizations with CEO plans in place are better able to manage the context of the CEO change. I would also point out that it is the management of the change context that will predict the organization’s smooth transition.

Additionally, while the previous comments are important, I would encourage the Chairperson to continue with the CO planning to make sure that existing senior executives and managers will support the new CEO. I would advise the Chairperson to include the senior executives and managers as much as possible in the planning and development of the CEO succession plan.

Allowing their participation will help the Chairperson understand the existing talents and strengths of senior executives and managers and will help the executives and managers support the future CEO.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

Overview Chapter 11, Recruitment, continues the authors’ instruction about human resource management operations. From the beginning steps of job analyses to the planning behind strategic workforce management, the next step for many organizations is that of recruitment. Recruitment supports organizational efforts to add to, to maintain, or to adjust their employees’ responsibilities.

Recruitment also allows organizations to develop their HR talents and skills. Hence, recruitment involves attracting new HR from outside the organization and changes in placement for HR within the organization. Large organizations conduct recruitment for positions at all levels of the organization.

Recruitment represents both financial and time costs for organizations. Therefore, organizations need to understand how to operate effective recruitment operations. These operations include the effective use of the Internet as a source for recruiting employees. Longitudinal research supports the practice of Realistic Job Previews (RJP) as one of the most effective recruitment tools. RJPs allow organizations to balance employee expectations about both the positive and negative aspects of employee positions.

Annotated Outline I.

At a Glance A. Organizations exist because there are human resources to complete the work.

B. Organizational operations require that HRM 1. Add employees 2. Maintain an existing mix of employees 3. Adjust their employees based on organizational changes 4. Attract individuals to the organization C. These adjustments define recruitment processes.

D. Recruitment operations must consider 1. Costs 2. Times 3. Long-term results for efforts

II. 1

Recruitment Planning A. Introduction 1. Recruitment operations may be considered .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

a. One-way (prospecting) where the organization seeks individuals or b. Two-way (mating) where individuals seek organizations as organizations are seeking people 2. For recruitment to occur there must be a. a common communication medium such as i. a website, ii. newspaper ad, or iii. television ad b. a job seeker who sees a match and c. a job seeker who applies 3. There must be a timetable for accomplishing the recruitment 4. Strategic workforce plan is critical at this point a. plan needs to include all levels within the organization b. plan needs to be sensitive to pressures outside the organization 5. Recruitment should begin with in-house talent first 6. When in-house talent decisions are determined, consider outside sources 7. The recruitment plan should include statistical evaluations (or the collection of data if the numbers do not exist) a. Number of leads to generate hires by a given time i. Leads to invites 2

ii. Invites to interviews iii. Interviews to offers .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

iv. Offers to hires b. Time-lapse for each of these ratios and for the complete process 8. Recruitment plans need to reflect labor markets a. Labor markets are the geographical areas relevant to HR supply and demand i. Labor markets may be internal to the organization ii. Labor markets may be 1) local, 2) regional, 3) national, 4) international b. Labor markets influence recruitment plan costs B. Staffing Requirements and Cost Analyses 1. Recruitment costs need to consider a. How many recruiters to handle organization staffing? b. What are the previous organizational statistics c. What are the outside pressures d. Costs for consultants for unplanned, occasional needs 2. General cost per hire formula = total cost per hire / number hired a. Gross cost per hire = TCOR / NH b. Staff costs – salaries, benefits, overtime premiums 3

c. Operational costs – telephone, travel, living expenses, fees

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

d. Overhead – rent, furniture, equipment 3. What is the organization’s image? a. organization’s appeal b. the geographic advantages c. available housing d. schools e. shopping f. medical support g. cost of living h. mortgage assistance C. Source Analysis 1. First and always consider internal resources as candidates as managerial policy 2. Second look to external sources for: a. entry level positions b. new jobs from expansions c. jobs existing HR cannot fill III. Operations A. External Recruiting Sources 1. Advertising – newspapers, Internet, journals, television, radio, billboards 4

2. Employment Agencies – federal, state, county, private, executive

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

3. Educational Institutions – universities, colleges, technical, trade, alumni 4. Professional Organizations – meetings, conventions, placements 5. Military – out-processing centers, retired officer placement services 6. Labor Unions 7. Career Fairs 8. Outplacement Firms a. Walk-ins b. Write-ins c. Within company transfers and retirees d. Employee Referrals 4. Other important trends for recruiting a. Informal Contacts b. Employment Agencies c. Internal job market d. Minority workers tend to rely on formal methods 5. Attracting student talent a. Web pages b. Interactive compact discs c. On campus recruiting d. Job fairs (virtual and face-to-face) 5

e. Campus Career Centers

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

6. To increase the chances that recruiting meets diversity management goals a. Determine & prioritize needs, goals, target populations b. Make contacts with i. community groups & ii. other external recruiting & iii. training organizations c. Develop results-oriented recruiting program d. Invite sources to the organization to learn about career opportunities with the organization e. Select a diverse group of organization contacts & external recruiters f. Get top management support and g. train organization managers about the strengths of diversity h. Develop procedures for monitoring & revising progress toward objectives i. Be specific about the diversity message given to all applicants 7. Factors that challenge effective diversity recruiting a. Lack of current diversity within an organization b. Lack of access to training and career-development programs c. Lack of diverse upper management B. Managing Recruiting Operations 1. Record & control applicant flow 6

2. Keep accurate records a. Log applications & resumes .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

b. Applicant activity c. Correspondence d. Offers & acceptances confirmed against open staffing requisitions e. Records of closed applications must be kept reasonable length time 3. Recruitment Management Software a. Resumix6 System from HotJobs.com, Ltd. b. BrassRing Systems c. Icarian d. Recruitsoft 4. Recruiting Websites of interest a. WetFeet.com b. Monster.com c. Careerbuilder.com d. Forbes.com e. Netshare.com f. Flipdog.com g. Spencerstuart.com h. Quintcareers.com IV. Measurement, Evaluation, and Control – regular cost and quality analyses for A. Cost of operations 7

B. Cost per hire C. Cost per hire by source .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

D. Total resume inputs E. Resume inputs by source F. Quality of resume by source G. Source yield and source efficiency H. Time lapse recruiting by source I. Time lapse recruiting stages J. Geographical sources of candidates K. Individual recruiter activity L. Individual recruiter efficiency M. Acceptance to offer ratio N. Offer to interview ratio O. Interview to invitation ratio P. Invitation to resume input ratio Q. Biographical acceptance, rejection R. Analysis post visit & rejection questionnaires S. Source yield and source efficiency T. Analysis reasons acceptance, termination U. Analysis post-reporting follow-ups V. Placement test scores hires versus nohires by acceptance versus rejection W. Placement test scores versus observed 8

X. Salary offer acceptance versus rejections Y. Salary by age, year of first degree, total work experience .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

V. Job Search from the Applicant’s Perspective, the Supply Side of the Picture A. Job search is social process 1. Remember to include friends, family, contacts, & networks 2. Recent college graduates have a typical search pattern a. 1st, broad search for potential jobs b. 2nd, rank & review jobs are ranked c. 3rd, make contacts d. 4th, revise job pool from first pool 3. All searchers need to use the Internet frequently B. When interviewing begins, applicants encounter 1. interviews that recruit 2. interviews that recruit & screen applicants C. Recent graduates prefer decentralized organizations with performance based pay D. Realistic Job Previews (RJP) 1. RJPS are interviews that give both the positives & negatives for any given position a. enhance negative job aspects b. moderate the positives 2. RJP Impacts include a. small applicant tendency to withdraw from process b. job acceptance rates lower 9

c. job performance shows no impact

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

d. job survival is higher e. all turnover is reduced f. organization spends less recruiting 3. Greatest RJP impacts occur when a. recruits have several offers b. recruits have unrealistic expectations c. recruits would have problems coping without the RJP E. How to be recruited 1. Take your time.

2. Be optimistic.

3. Be thorough and honest about your own skills, abilities, & desires.

4. Develop a plan & follow it.

5. Be approachable, develop your contact network.

6. Involve your family & keep your friends up-to-date.

7. Tell the truth.

8. Remember introductory letters &/or emails with your resumes.

9. Let the employer bring up salary first. a. Be reasonable about what position is worth b. Do your research i. www.onetcenter.org 10

ii. U. S. Bureau of Labor Statistics iii. U. S. Department of Labor .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment

Discussion Questions 1. Describe three key issues to consider in recruitment planning. Pages 237, 238 There are two ways to approach this description. Both of the approaches are equally important and the best answers will address both approaches. One approach is to consider (1) the communication medium, (2) the perception of a match between the job seekers characteristics and the job’s description, and (3) the job seekers’ motivation to apply for the position. A second approach is to consider (1) the costs to the organization to satisfy specific job needs, (2) the time needed to fill the position, and (3) the results of previous recruiting efforts.

With the first approach, decisions must be made with regard to the most effective communication medium to reach the targeted audience of recruits. For example, to reach Senior level executives with very specialized skills, the most effective medium could be a trade journal or a regional conference. For entry level college recruits, a multipurpose internet job search engine such as Monster.com would be more effective. This medium will also influence the job seekers’ perceptions of the match between their interests and abilities and the needs of the organization’s jobs. With that in mind, it makes sense for an organization to be very specific about their needs and expectations. Organizations must balance this need to be specific with a corresponding need to not present so much information that they lose their competitive edge. Finally, while organizations cannot guarantee that seekers will be motivated to apply, organizations must attempt to make the job specifications appealing and to manage their organizational image.

With the second approach, organizations consider how much they can afford to spend on recruiting in terms of out-of-pocket costs and will weigh that amount relative to how much time they can afford to wait before having the position(s) filled. The realities that organizations face include the facts that they may have limited budgets for recruitments and cannot afford to wait even a short amount of time. Therefore, proactive and strategic organizations will keep an on-going and low key recruitment plan active to minimize the search times. Costs can be minimized by building their internal employee development (cross-training) programs and by keeping an active applicants system. Of specific assistance with this situation is an internal employee referral incentive program.

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2. How do labor market conditions affect wages and yield ratios? Page 239

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment The term labor market refers to the geographic areas involved where organization’s work is completed relative to the geographic locations of individual job seekers. Labor markets can favor organizations keeping wage costs low and the yield ratios high. When labor markets favor job seekers, wage rates tend to be higher and the organizational yield ratios lower. At the simplest level, when jobs are limited and employees are plentiful, the labor market favors organizations. When jobs are plentiful and employees are limited, the labor market favors individuals seeking jobs. When jobs are limited and employees are limited, too, the labor market will still favor the individuals seeking jobs because the competition for these seekers is tougher. When jobs are plentiful and employees are plentiful, the labor market favors the organizations because there are many seekers to choose to choose from with relatively little effort involved. Other factors interact with labor market pressure. For example, increased educational requirements tends to put more pressure on labor market supplies and on labor market demands, thus keeping wage rates high and yields relatively low.

3. Discuss the advantages and disadvantages of Internet-based recruiting. Page 246 Internet recruiting offers some very substantial cost savings for organizations. These savings translate into decreased out-of-pocket costs and also may translate into decreased recruiting times.

In general, organizations experience costs savings by reducing typical searches from 49 to 43 days, by reducing searches from 43 to 39 days through online applications, and by reducing searches from 39 to 32 days with online screening and processing. It is important to note that effective internet recruitment will not always translate into shorter recruiting times but as job seekers become more skilled and familiar with internet recruiting, recruiting times should become more predictable. With that said, though, some positions should not depend solely on internet recruiting. Recruiters must make reasoned judgments about the type of position and the responsibilities that the individual will have.

4. As a senior manager, what metrics would you find most useful in assessing the effectiveness of recruiting? Pages 239 - 241, 247, 248

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As a senior manager the metrics I would find most useful would include financial and operational information. These metrics include General cost per hire formula = total cost per hire / number hired Gross cost per hire = TCOR / NH Staff costs – salaries, benefits, overtime premiums Operational costs – telephone, travel, living expenses, fees Overhead – rent, furniture, equipment Cost per hire by source Total resume inputs Resume inputs by source Quality of resume by source Source yield and source efficiency Time lapse recruiting by source Time lapse recruiting stages Geographical sources of candidates .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment Individual recruiter activity Individual recruiter efficiency Acceptance to offer ratio Offer to interview ratio Interview to invitation ratio Invitation to resume input ratio Biographical acceptance, rejection Analysis post visit & rejection questionnaires Source yield and source efficiency Analysis reasons acceptance, termination Analysis post-reporting follow-ups Placement test scores hires versus nohires by acceptance versus rejection Placement test scores versus observed Salary offer acceptance versus rejections Salary by age, year of first degree, total work experience 5. How would you structure an employee referral program? Pages 243 - 245 Before structuring an employee referral program, I would consider the existing costs for recruiting employees per job level, the overall size of the organization, the total number of employees within the organization, the variety of jobs within the organization, the current operating procedures, the available funds for recruiting in general and for incentives specifically, the strategic business plans, and the existing competitive environment. With that specific organizational information, I would investigate industry standards and typical Employee Referral Incentive Programs. Assuming that the organization is large enough to need frequent employee additions and that the organization is profitable enough to be able to follow through on employee referral incentives, I would structure the referral program to include the following For highly skilled, professional positions – An immediate sign-on bonus for the referring employee of 1% to 5% of the existing costs to recruit new hires.

After the new employee has been with the organization for 6 months and has received a 6 month performance appraisal rating of meets expectations or better, an additional incentive bonus of 5% of the referring employee’s annual gross earnings will be awarded.

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After the new employee has been with the organization for 18 months and has received the 6 month performance appraisal rating of meets expectations or better, and has received an annual performance appraisal rating of meets expectations or better, an incentive bonus of 5% of the referring employee’s annual gross earnings (at the 18 month anniversary date of the referred employee) will be awarded.

After the new employee has been with the organization for 24 months and has received the 6 month performance appraisal rating of meets expectations or better, and has .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment received an annual performance appraisal ratings (2) of meets expectations or better, a final incentive bonus of 5% of the referring employee’s annual gross earnings (at the 24 month anniversary date of the referred employee) will be awarded.

These rewards will total 15% or more of (but not less than) the referring employee’s annual gross earnings at the time the referred employee is hired.

For entry level, non-professional positions (basically hourly) An initial sign-on bonus of $500 An additional bonus at 12 months of $500 A final bonus at 18 months of $500 to $1000

6. How can hiring management systems enhance the efficiency of recruitment efforts?

Pages 245 – 247 Recruitment operations require significant record keeping, management reporting, legal reporting, short-term and long-term management planning. Hiring management systems are automated systems specializing in the recruitment record keeping and information management. By automating the application process, the corresponding recruitment actions and responses, or other organization specific administration, an organization can reduce the number of HR specialists required to recruit, can improve the job performances of those HR specialists who are required, can improve their ability to provide meaningful recruiting information, and can reduce their legal liabilities through accurate and useful recruiting data.

7. Outline the components of a diversity-based recruitment effort. Page 244 An outline of a diversity-based recruitment effort follows

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I. Determine & prioritize needs, goals, target populations II. Make contacts with i. community groups & ii. other external recruiting & iii. training organizations III. Develop results-oriented recruiting program IV. Invite sources to the organization to learn about career opportunities with the organization V. Select a diverse group of organization contacts & external recruiters VI. Get top management support and VII. train organization managers about the strengths of diversity VIII. Develop procedures for monitoring & revising progress toward objectives IX. Be specific about the diversity message given to all applicants

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 11 –Recruitment Additional factors that may increase challenges to effective diversity recruiting I. Lack of current diversity within an organization II. Lack of access to training and career-development programs III. Lack of diverse upper management

8. Identify five (or more) recommendations you would provide to a friend who asks your advice in finding a job. Pages 248 - 250 1. Take your time.

2. Be optimistic.

3. Be thorough and be honest about your own skills, abilities, & desires.

4. Develop a plan & follow it.

5. Be approachable and develop your contact network.

6. Involve your family & keep your friends up-to-date.

7. Tell the truth.

8. Remember introductory letters &/or emails with your resumes.

9. Let the employer bring up salary first.

9. Develop a realistic job preview for a prospective city bus driver. Pages 249 - 251 A realistic job preview for a prospective city bus driver would give the candidate both the positive aspects and the negative aspects of the job. Positive aspects could include the valuable service provided to the people who ride the buses, the importance of bus drivers to reducing the number of single driver cars on the roads, the variety of the routes and scenery, the opportunities to interact with many different people every day, participation in the bus company’s employee benefits program, on-going training, opportunities to interact with fellow bus company employees, knowing the pay schedule in advance. Some of the negative aspects to being a city bus driver would include the need to sit for long periods of time, being required to perform the same operations over and over, being required to drive in all kinds of weather, having to interact frequently with strangers, needing to drive the same routes or unfamiliar routes, being required shifts during the evening or nights, having to deal with bus breakdowns, being required to make emergency decisions, being required to provide first aid as needed, knowing that the pay scale has fixed limits.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

Overview Selection Methods: Part I, Chapter 12, focuses on the processes involved with the initial screening of applicants. Chapter 12 explains the decision-making completed by HRM responsible for determining who (from a pool of recruited applicants) is considered for the next stage of the employment process. In other words, who passes the screening and who continues to be a candidate.

The initial screening processes include checking recommendations and references, verifying personal history data, administering honesty and integrity tests, evaluating training and experience, and finally, conducting interviews. For each of these processes, discussion includes the methods, strengths, and ongoing and future challenges. The chapter concludes with a description of future screenings based on virtual or computer-aided technologies.

Annotated Outline I. At a Glance A. Beginning stages of HR selection are called initial screenings.

B. Screenings may be rough and imprecise 1. Glancing through resumes 2. Scanning through applications C. Screenings may be sophisticated and technical 1. Checking references 2. Background checks 3. Conducting honesty & integrity tests 4. Polygraph testing D. Subject to ethical and legal constraints E. Successful early screenings tend to result in face-to-face interviews.

F. Future screenings may result in technologically dependent interviews 1. as replacements or 1

2. additional interview methods II. Recommendations and Reference Checks .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

A. Information falls into 4 categories: 1. Employment & education history 2. Evaluations of character, personality, interpersonal skills 3. Evaluation of previous job performance 4. Willingness to rehire B. Value of recommendations subject to provider’s actual witness of job performance 1. Criticisms may lead to charges of a. LIBEL for written evaluations b. SLANDER for oral evaluations 2. Information may say more about provider C. To increase recommendations value, information should include 1. Degree of familiarity with the candidate 2. Degree of familiarity with the job in question 3. Specific examples of performance 4. Individuals or groups to whom candidate is compared D. Remember 1. Reference checks are legal.

2. Reference checks are expected.

3. Failure to check, may lead to an organization being held liable if future problems occur with other employees.

E. To keep reference checks equitable, Information collected should be 2

1. Consistent (for all applicants) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

2. Relevant (for jobs being recruited) 3. Written (documented for all applicants to check) 4. Public (court records, worker’s compensation, bankruptcy, credit records) F. To increase quality of reference check, 1. Put the recommender in a position of evaluating abilities rather than one of passing judgments 2. Ask the recommender how to bring out the best performance of the applicant instead of asking about past performance II. Personal History Data A. Generally collected by 1. Application Blanks, Biodata a. Predicting language & math abilities from education items b. Physical abilities from sports & health items c. Leadership & interpersonal abilities from previous experiences d. Sociability from activities e. Openness from travel & education f. Motivation levels from all experience 2. Weighted Application Blanks a. Reasoning: some information is better b. Action: assign weight to information c. Result: minimum acceptable scores d. Most useful: 3

i. when jobs require extensive training ii. where turnover is high .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

iii. when many people apply for few jobs e. Note: cross-validate & maintain cost payoff statistics 3. Biographical Information Blanks a. Reasoning: some information is better b. Action: i. large sample multiple choice items ii. assign weights to the items c. Result: minimum acceptable scores d. Most useful: when designed for specific types of work e. Note: cross-validate & maintain cost payoff statistics B. Stay away from items that 1. May lead to adverse impact on protected groups 2. Do not appear job-related or necessary to job 3. May be an invasion of privacy C. Be aware that non-answers are viewed negatively.

D. Statistical checks for reliability & validity can be applied & lead to greater standardization.

E. Response distortion 1. Application Blanks & Biographical Data a. Findings - As many as 20 to 25% resumes distort, sweeten, or inflate various pieces of information 4

b. Predictors of honesty include values, morals, religious faith c. Ways to control distortion: .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

i. Request verifiable information ii. Use option-keyed items iii. Warn about the use of a lie scale iv. Ask applicants to elaborate answers 2. Classifications of biographical data a. Historical versus futuristic b. Actual versus hypothetical behavior c. Firsthand versus secondhand experience d. External versus internal e. Specific versus general f. Invasive versus noninvasive 3. Types of Biographical Data Classifications a. Historical or futuristic b. External or internal c. Objective or subjective d. First-hand or second-hand e. Discrete or summative f. Verifiable or nonverifiable g. Controllable or Noncontrollable h. Equal access or nonequal access i. Job relevant or not job relevant j. Invasive or noninvasive 5

E. Validity of Application Blanks & Biographical Data 1. Occupational validity coefficients biographical data ranges +.33 to +.37 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

a. Life insurance Agents b. Law enforcement officers c. Service station managers d. Sales clerks e. Research scientists f. Unskilled, clerical g. Army officers h. Management employees i. Engineers j. Architects 2. Criteria for success included a. turnover b. sales volume absenteeism c. training success d. salary increases e. creativity rating f. credit risk g. sales volume h. performance ratings i. number of publications j. employee theft

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3. Caution - For validity statistics, be sure to match job applicants with job incumbents 4. Risks .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

a. If matching is not completed, then statistics may lose predictive accuracy. b. Successful performers may not represent the pool of applicants F. Bias & Adverse Impact Biographical Data 1. Caution - Must always remember laws surrounding Human Resource Management 2. Biographical data is acceptable only if a. Job-related b. Does not unfairly discriminate minority or nonminority groups III. Honesty and Integrity Tests A. Polygraphs 1. Measure changes in physiological reactions 2. Use of Polygraph results limited by courts 3. May be used for those working in a. National Security b. Controlled Substances B. Polygraph Test Screening 1. Greatest uses appear to be with specific events.

2. Substantive research reveals polygraph weaknesses a. physiological indicators can be misled by conscious effort. b. too many honest people fail c. too many security threats pass 7

C. Honesty or Integrity Tests 1. Use has increased .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

2. Two major categories: a. Overt Integrity Tests b. Personality-oriented measures 3. Overt Integrity Tests a. Reid Report - attitudes toward theft b. Personnel Selection Inventory - admissions of dishonesty 4. Personality-oriented measures a. predict counterproductive behaviors i. substance abuse ii. insubordination iii. absenteeism iv. passive aggression b. Big 5 Personality Factors i. conscientiousness ii. extraversion iii. neuroticism iv. agreeableness v. openness to experience c. Example - Reliability Scale by Hogan Personnel Selection Series D. Honesty Test Issues 1. Need better construct validity 8

2. Need to understand gender effects 3. Need to understand age effects .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

4. Need to improve tests wordings 5. Need to reduce distortions in answers IV. Screening by Training & Experience A. Evaluations may be subjective & informal or objective & standardized.

B. Important to remember that experience is cumulative accruing over time.

C. Common evaluation methods include 1. Behavioral consistency over time 2. Accomplishment record 3. Academic qualifications V. Computer-based Screening A. Electronic Page Turner B. Interactive Voice Response C. Computer-adaptive Testing D. Standardized 1. Data entry reduced 2. Increases applicant pool 3. Accommodates disabled applicants 4. Limits adverse impact E. Challenges 1. Limited use low- to mid- level positions 9

2. Limited access by some individuals 3. Frequent technology changes .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

4. Costly 5. Image problems 6. Lack of guidance cost effectiveness VI. Drug Screening A. Current legal trend is that drug testing is lawful & does not invade rights to privacy.

B. Employers are liable for the safety of all workers & to the public at large.

C. Efforts are ongoing to reduce the ability to cheat on drug tests and to limit access to products which can lead to false drug test results.

E. Drug testing is lawful when 1. All employees & applicants are informed in writing of company policy regarding drug use.

2. The drug policy & the possibility of testing are included in all employment contracts.

3. The drug policy is presented within the context of improving employee health and increasing the safety of the workplace.

VII. Employment Interviews A. General Information 1. Interviews – two-way process a. Applicants learn - job, organization b. Interviewers learn applicant as complete person versus paper-person or electronic-person 2. Accepted - negotiate employment 10

3. Rejected - understand why & leave with positive impression

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

B. Employment Interviews & Response Distortion (Aka Impression Management) 1. Interviewees’ impressions a. try to look good b. try to be “socially appropriate” c. try to behave “politically correct” d. can reduce these behaviors i. with computerized interviewers but ii. interviewees resent being quizzed by computers 2. Reliability and Validity a. Validity coefficients for supervisory ratings range from +.14 to +.47 b. Reliability coefficients i. interrater reliability averages +.70 ii. internal consistency averages +.39 c. Structured employment interviews - validity coefficients at +.67 d. Unstructured employment interviews - validity coefficients at +.34 C. Decision-Making Factors 1. Social/Interpersonal Factors a. Interviewer Applicant Similarity i. Similarity – attraction ii. Attraction - positive emotion 11

iii. Positive emotion - higher ratings

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

b. Effects are small & can be eliminated by having diverse interviewers and by using structured interviews c. Verbal & Nonverbal Cues i. When interviewers talk more, interviewees get more offers ii. Positive nonverbal behaviors lead to higher ratings but effect is small iii. Nonverbal gender differences for direct eye contact 1) Men perceived as credible 2) Women perceived as coercive d. Best Interviewee results happen when interviewees i. Respond concisely ii. Answer completely iii. Give relevant personal opinions iv. Keep the subject at hand 2. Cognitive Factors a. Pre-interview Impressions & Confirmatory Bias i. Interviewers act in ways consistent with impression from resume ii. Interviewers ask questions to confirm their impressions or information in ways consistent with their impressions b. First impressions i. impact accept/reject decisions within first 5 minutes ii. effect of positive firsts not as strong as one negative 12

c. Prototypes and stereotypes i. develop a prototype of ideal candidate & search for “matches” .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

i. If negative stereotypes exist, hard to get beyond prejudices d. Contrast effects - other candidates become the standard rather than the requirements themselves

e. Information Recall i. for interviewers to have accurate recall of the content of interviews, notes must be taken ii. for notes to be accurate, training & practice must occur 3. Individual Difference Factors a. Applicants – Appearance i. Attractiveness importance varied ii. Negative biases stronger for women iii. Age not a significant detriment iv. Race more important for similarity effects than for discrimination v. Disability effects mixed vi. Conscientiousness & Extraversion preferred b. Interviewers – i. Training & Experience -Results inconclusive but seem to indicate that without training bad consistently bad decisions with regard to who to hire ii. Cognitive Skills – 1) Results are inconclusive for sheer cognitive ability 13

2) Moods do seem to effect ratings & decisions to hire when applicant’s skills are ambiguous and when applicant appears unqualified .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

4. Interview Structure a. Structured Interviews appear to be better than Unstructured b. Questions need to be based on job analyses c. Questions need to gather relevant specific information i. Experience ii. Knowledge iii. Hypothetical situations 5. Use of alternative media increasing for interviews a. Video-conferencing b. Telephone c. Virtual Reality Technology (VRT) versus Face-to-face D. Improving Employment Interviews 1. Link interview question to job analysis 2. Ask each candidate identical questions in identical situations 3. Anchor the rating scales for answers with pictures, examples, illustrations 4. Recognize that panel interviews are no more accurate than individual interviews 5. Combine ratings objectively (summing/averaging) 6. Train the interviewers properly 7. Document the job analysis and interview development procedures (keep them up-to-date) 8. Provide feedback to interviewers with regard to who does well and who does not after being hired 14

Discussion Questions

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

1. How can the usefulness of recommendations and reference checks be improved?

Pages 253 – 255 Recommendations can be improved by making sure that the recommendations provide the following information about the person (candidate, applicant) receiving the recommendation or reference. First, the provider needs to indicate how familiar they are with the candidate (applicant). Familiarity includes how long they have known the applicant, how often they have worked with them and in what contexts. Second, the person providing the recommendation needs to provide a statement as to their own knowledge about the job that the applicant is interested. Third, the reference provider needs to describe actual work (projects) accomplished by the applicant. Finally, the recommendation needs to provide a comparison of the applicant relative to other individuals or groups doing the same jobs.

References are most useful when they have the following characteristics. First the references should be consistent, as in the minimum criteria are the same for all applicants every time the position is filled. Next, reference checks should only that information that is relevant to the determination of effective and ineffective employees.

All reference checks should be written and documented to support any future questions about the applicant’s performance or their employment decisions. Reference checks should be based on public records. These public records include, but are not limited to, court records, workers’ compensation claims, credit checks, and bankruptcy proceedings. Additionally, reference checks can be improved by asking the provider to evaluate a candidate’s abilities (not past performances) and to predict how best to manage a person to bring their best performance.

2. As CEO of a large retailer, you are considering using drug testing to screen new hires.

What elements should you include in developing a policy on this issue?

Pages 265 - 267

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A drug testing procedure to screen new hires should be in writing with the written copy given to all applicants. If this is a new procedure, the policy that the procedure represents needs to explained to all existing employees at all levels of the organization at the same time. With all existing employees aware of the procedure, the drug testing needs to be presented within the context of improving employee health and safety. An additional context that needs to be included is that of the adherence to existing federal, state, and local laws. The procedure needs to be enforced as it is written and the consequences for not passing the tests need to be consistently enforced. To minimize cheating on drug tests, the procedure needs to include the practice of both random and scheduled drug testing.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

3. What instructions would you give to applicants about to complete a biodata instrument so as to minimize response distortion? Pages 256, 257 To minimize response distortion for applicants’ biodata, I would make sure that all applicants recognize that the information will be verified. I would also design the biodata instrument to include forced choice or option keyed items. While I find the practice somewhat discouraging and a sad commentary for global employment practices, I would let all applicants know that the completion of a lie scale is part of the screening process. Finally, as a part of the final screening process, I would make sure that all applicants provide elaborations for their biodata while judges check for consistency, accuracy, and transparency in the answers.

4. What is the difference between personality-based and overt honesty tests? Which constructs are measured by each of these types of measures? Pages 261 – 263 Personality-based and overt honesty tests are designed to assess existing attitudes toward dishonest work behaviors and to predict the probability of future dishonest work behaviors. Overt honesty tests measure attitudes toward dishonesty from two perspectives. One perspective is that of tolerance for or rationalizations for theft. A second is that of the beliefs about the frequencies of dishonest organizational behaviors. Personality-based honesty tests attempt to predict probabilities for counterproductive work behaviors such as absenteeism, substance abuse, insubordination, passive aggressive actions, false expense reports, or bogus worker’s compensation claims.

While the use of these tests has led to a decrease in the incidence of dishonest work behaviors, there are some issues that need to be acknowledged and improvements that need to occur. For example, tests’ predictive accuracies are not so high that their results can be taken on blind faith. More knowledge is needed with regard to individual characteristics and the perception of honest behaviors. Existing honesty test results indicate unexplained gender differences with women tending to score higher than men. Finally, the language surrounding honesty questions is very similar to the language used to assess ability. Better assessment statement wording may lead to improved integrity and honesty scores for more applicants.

5. Are you in favor of or against the use of polygraph testing for screening applicants for security screening positions at airports? Why? Pages 267, 268 16

I am in favor of the use of polygraph testing within this context provided that the applicants why they are taking the tests, how the results will be used, that the results of the polygraph tests are analyzed within the context of other application and screening information. Additionally, I would make sure that the results of the polygraph tests are .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

reviewed by multiple people who have receiving training as to how to interpret the results. I think the results should be analyzed by individuals who do not know or have any reason to prefer one applicant over another. Another precaution to take with regard to polygraph test results is to make sure that decisions based on the results are reviewed periodically (3 months, 6 months, 12 months, etc.) after a person is hired for airport security.

6. In an employment interview, the interviewer asks you a question that you believe is an invasion of privacy. What do you do? Pages 256, 260, 273 – 275 What I would do would depend on the situation and the context in which the question was asked. For example, if I perceived that the question asked was irrelevant but not invasive, I would answer with minimal information and I would try to redirect the line of questioning. If this sort of question happened again, I would be calm but explicit about wanting to know why the question was asked. If the interviewer continued to bring up inappropriate questions, I would terminate the interview, withdraw from consideration, and leave. If the nature of the questions were not only irrelevant but also offensive, I would file a complaint with the organization’s human resources department, the interviewer’s manager, the EEOC (or the local Fair Employment Practices Commission), and the agency who put me in touch with the organization. Another probable action I would take would be to let other applicants know about the line of questioning so that a grassroots level resistance could form and attempt to prevent future inappropriate interviews.

7. Employers today generally assign greater weight to experience than to academic qualifications. Why do you think this is so? Should it be so? Pages 256, 259

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I believe that employers have many reasons for concentrating more on experience than on academic qualifications. One of the reasons is an unwillingness to be the first employer to see if the applicant’s academic training was successful. In other words, too often, students graduate with a degree but the attainment of a degree does not guarantee success on the job or for the organization. Employers are aware that many on-the-job skills are not taught within the realm of academics. For example, being able to complete a course with a specific start date and a specific end date with objectives defined in syllabi is one set of skills. Being able to work well with a diverse group of people with changing start dates, variable objectives and multiple target completion dates requires a completely different set of skills. Another reason is that organizations want to invest less in training a new employee. Therefore, they believe that if an applicant has previous relevant work experience, the chances of their being successful for the organization are higher. Previous work experience in combination

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

with a relevant academic accomplishment increases the probability of a good hire decision.

My reaction as to whether organizations are justified in this practice is a mixed reaction. On one hand I understand how tough the competition for sustainable profitability is for all organizations. From this perspective I think it is fair for organizations to require some work experience. On the other hand, I believe that academic accomplishments are a strong predictor of motivation and aptitude and perseverance. All individuals must go through some organizational training even when they do possess work experience. So, from that perspective, I think organizations are short-changing themselves when it comes to who they consider for employment.

Training and investing in a new graduate can lead to greater profits and develop a highly committed work force. It would seem that the best approach to resolving this dilemma would be to intentionally hire both experienced and inexperienced (but with academic credentials) employees. The decision as to which person is preferable could be determined per position(s) being filled.

8. Discuss some of the advantages of using computer-based screening (CBS). Given these advantages, why isn’t CBS more popular? Pages 264 – 265 Given the prevalence of automated interactions, it makes sense to use a screening technique that many individuals are familiar with using. It also makes sense in that only the truly interested will put forth enough effort to complete an automated screening program. On the other hand, not all sincerely interested and talented applicants will understand how to use or will have access to the technology. Individuals who are interested in and who are qualified for more skilled positions or to hold positions of greater responsibility may resent having to interact with automation before they are allowed to meet the people representing the organization. Inappropriate use of computer-based screening may lead to the organization being perceived of as operating with a Theory X (employees as machines) attitude toward their employees. Today’s workers expect managerial styles to evidence more of a Theory Y (employees as valuable investments) attitude toward their employees. Another disadvantage of CBS is that the technologies change so rapidly that applicants may possess competitive job skills without possessing necessary application skills. Organizations, too, may have many opportunities for many applicants but may not be able to keep up with candidates’ application skills.

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9. Your boss asks you to develop a training program for employment interviewers. How will you proceed? What will be the elements of your program, and how will you tell if it is working? Pages 268 - 280

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

If I am developing a training program for a consulting company that hires for other organizations, I would take one approach. If I am developing a training program for an organization that has its own recruiting division I would take another approach. If I am training decision-makers within an organization where recruiting is one aspect of their existing job, I would take a third approach.

For consulting companies – I recommend the following.

1. Train the recruiters about the industry in which the organization competes.

2. Train the recruiters about the laws governing the organization.

3. Train the recruiters about the organization needing the new hires. a. Learn the organization’s vision, mission, goals, and objectives. b. Study their products, services, suppliers, support systems. c. Understand their employee management and development philosophies. d. Learn their employee benefits package. e. Learn their salary administration procedures.

4. Train the recruiters about the jobs that need to be filled. a. First provide the recruiters with current job descriptions. b. Second, provide the recruiters with copies of performance reviews for successful job incumbents. c. Third, allow the recruiters to shadow several successful performers.

5. Train the recruiters how to conduct structured versus unstructured interviews and how to determine when structured interviews are preferable. a. Begin by having them observe videos of strong versus poor interviews. b. Follow-up by having them develop written interviews. c. Continue by having them practice interviews while being video-taped.

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d. Allow them to observe their taped interviews and to participate in a critique of their interview sessions.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

e. Send them out to conduct interviews with an experienced interviewer as a mentor.

6. Assign them clients, send them out to meet with their clients.

7. Provide guidance as requested as they conduct their recruiting interviews.

8. Follow-up with the clients periodically to see how their recommended recruits performed.

9. Adjust the training program as needed.

For a large organization with its own recruiting staff, I recommend the following.

1. Train the recruiters about the industry in which the organization competes.

2. Train the recruiters about the laws governing the organization.

3. Train the recruiters about the organization needing the new hires and the positions they are responsible for filling. a. Learn the organization’s vision, mission, goals, and objectives. b. Study their products, services, suppliers, support systems. c. Understand their employee management and development philosophies. d. Learn their employee benefits package. e. Learn their salary administration procedures.

4. Train the recruiters about the jobs that need to be filled. a. First provide the recruiters with current job descriptions. b. Second, provide the recruiters with copies of performance reviews for successful job incumbents. c. Third, allow the recruiters to shadow several successful performers.

5. Train the recruiters how to conduct structured versus unstructured interviews and how to determine when structured interviews are preferable.

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a. Begin by having them observe videos of strong versus poor interviews. b. Follow-up by having them develop written interviews. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

c. Continue by having them practice interviews while being video-taped. d. Allow them to observe their taped interviews and to participate in a critique of their interview sessions. e. Have them observe an experienced interviewer as a mentor.

6. Give them a mentor to assist them and set their recruiting goals.

7. Provide guidance as requested as they conduct their recruiting interviews.

8. Follow-up with the hired employees and with their supervisors periodically to see how their recommended recruits performed.

9. Adjust the training program as needed.

For a smaller organization with employees responsible for interviewing candidates, I recommend the following.

1. Train the employee about the industry in which the organization competes.

2. Train the employee about the laws governing the organization. a. Learn the organization’s vision, mission, goals, and objectives. b. Understand the job description of the work that needs to be completed. c. Understand their employee management and development philosophies. d. Learn their employee benefits package. e. Learn their salary administration procedures.

3. Train the employee how to conduct structured versus unstructured interviews and how to determine when structured interviews are preferable. a. Begin by having them observe videos of strong versus poor interviews. b. Allow them to practice with trainers role-playing candidates.

4. Give them a mentor to assist them and set their recruiting goals.

5. Provide guidance as requested as they conduct their recruiting interviews.

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6. Follow-up with the hired employees, with their peers, and with their supervisors periodically to see how the new hires perform. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

7. Adjust the training program as needed.

10. Discuss the advantages of using a structured, as opposed to an unstructured, interview. Given these advantages, why are HR managers reluctant to conduct structured interviews? Pages 275 - 277 The advantages of structured interviews include increased validity or accuracy for interview based decisions, decreased racial differences for employment decisions, and decreased charges of discriminatory practices. Structured interviews focus on job performance related dimensions, hence, the information gathered does a better job of predicting successful work. These questions may be based on actual work experience or on descriptions of potential situations. When interviews are focused on performance, color of skin and racial identification is not the motivation behind employment decisions. When structured interviews are part of the employment decisions, the decisions are perceived as fair, the outcomes are better, and therefore, legal challenges about the decisions do not happen as often. When legal challenges do occur, the organization is able to justify their decisions and actions.

HR managers are unwilling to limit their interviews to structured interviews only for several reasons. One reason is that HR managers are required to determine whether candidates will get along interpersonally with other people within the organization. This information is not so much job related as it is about personality compatibility.

Knowledge about compatibility is not as easily quantifiable or structured as is jobrelated knowledge. Another reason is that it is natural to express spontaneous interest in another person when two or more people interact. This informal interaction does not limit itself to unstructured interviews nor is it reasonable to expect that it will not occur even with a structured interview process. Hence, most professional HR managers try to make sure that information from unstructured interviews does not override the structured interview information.

11. Provide examples of constructs and specific jobs for which the use of virtual reality technology would be an effective alternative compared to more traditional screening methods. Page 280

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Examples of specific jobs that might lend themselves to virtual technologies include crisis intervention specialists, police, military personnel, teachers, lab technicians, surgical specialists, public transportation drivers, truck drivers, airline pilots, and financial managers. Public transportation, truck drivers and airline pilots could demonstrate equipment familiarity and skills without having to use actual equipment or prior to be allowed to drive various types of trucks or to fly different types of airplanes.

This could reduce the cost of damage to equipment, reduce the risk to other individuals, and to identify where areas of specific training is needed versus general training. Crisis .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 12 –Selection Methods Part I - Initial Screening

intervention specialists could act out how they would deal with dangerous situations without putting actual lives at risk. Police officers and military personnel could demonstrate their abilities with firearms in multiple situations without putting themselves or others at risk. Teachers could demonstrate their mastery of knowledge and their ability to handle various classroom situations. Surgeons could demonstrate their ability to diagnose, to correct, and to heal patients without putting the patients at risk, without creating malpractice lawsuits, and without using costly medical supplies.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

Overview Selection Methods Part II: Managerial Selection, Chapter 13, presents the special challenges surrounding the identification, selection, and assessment of individuals who function as organizational managers and leaders. These challenges fall into three major categories. The first challenge is that of describing the behavioral components (criteria) of success. With the recognition that the descriptions may vary per organization, there are standard procedures for developing the descriptions. The next challenge is that of identifying and assessing managerial and/or leadership behavioral predictors. As with criteria, these predictors may vary per organization and industry but following standard procedures improves the reliability, the validity, and the discriminability of the selections. Discussions of several managerial selection assessment tools include the Leadership Opinion Questionnaire, the Leadership Behavior Description, the Motivation to Lead Questionnaire, the Miner Sentence Completion Scale, the Job Choice Exercise, as well as, other techniques such as the Leaderless Group Discussion, the In-basket Test, and the Assessment Center Operations. The chapter concludes with descriptions of the interrelationships that may exist between the criteria and the predictors.

Annotated Outline I. At a Glance A. Managerial selection problems are unique 1. descriptions of effectiveness 2. development of behavioral predictors 3. current data collection techniques include a. Cognitive ability tests b. Objective personality inventories c. Leadership ability and motivation tests d. Projective devices e. Personal history data f. Peer ratings

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4. Techniques can be combined per situation, organization, or per organizational level B. Recent emphasis is on managerial work samples 1. In-basket .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

2. Leaderless group discussion 3. Business game 4. Situational judgment tests 5. These work samples offer face & content validity, reasonable predictions C. Another promising method is the Assessment Center 1. May combine work-samples and paper-and-pencil (web-based) tests 2. May use multiple assessments, multiple ratings 3. Promising reliability and validity is increasing its popularity II. Introduction A. There are many questions surrounding effective managerial selection.

1. What are the predictors?

2. What are the criteria?

3. What are the research challenges?

B. Managerial behaviors require different knowledge, skills, & abilities.

C. Understanding the behaviors through research can be difficult.

1. Samples are limited by size & logistics.

2. People applying for the positions may create pre-selection limits.

III. Criteria of Managerial Success A. Predictors & selection criteria include optimizing actions & behaviors.

1. Optimizing actions & behaviors are internal and external. a. Business knowledge b. Customer orientation 2

c. Achievement oriented d. Strategic thinking .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

e. Innovative f. Personal integrity g. Emotional intelligence B. Another way to classify managerial success criteria 1. Objective or subjective 2. Global and administrative C. Emphasis is on actions & behaviors relative to organization outcomes relative to 1. Expert opinions 2. Job analysis 3. Multiple observations 4. Many situations 5. Pattern of performance D. Strengths 1. Test-retest reliability high 2. Inter-rater reliability high 3. Broad samples of behaviors a. over time b. comparisons with peers E. Weaknesses 1. Difficult to isolate variance limited to a single factor without extraneous interactions 3

2. Difficult to avoid group or class biases a. Measures indicate where a person is with regard to managerial potential. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

b. Measures do not indicate how a person gets there.

F. Managerial selection goals and the context of the goals become predictive models considering each person’s 1. Situational characteristics 2. Selection attributes considered by decision makers 3. Organization business strategy 4. Organization environment conditions IV. Instruments of Prediction A. Terms and their meanings 1. Test – assessments that have correct and incorrect answers 2. Inventories – assessments that indicate amounts of abilities B. Cognitive Ability Tests 1. General intelligence a. Verbal b. Nonverbal c. Numerical d. Spatial e. Perceptual speed & accuracy f. Inductive reasoning g. Mechanical knowledge 2. Research supports practice that general cognitive ability is the single best predictor of managerial performance 3. Controversies exist with the use of cognitive abilities tests 4

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

a. Adverse impact to protected groups b. Limited concept of intelligence c. Does not consider i. tacit knowledge ii. practical knowledge iii. emotional knowledge C. Objective Personality Inventories 1. General agreement exists for the Big 5 Personality Traits from the Five Factor Model (FFM) a. Conscientiousness b. Agreeableness c. Neuroticism d. Openness e. Extroversion 2. Recent agreement establishes that traits are activated as a function of job situations such as a. demands b. distractors c. constraints d. releasers or facilitators 3. This also explains why some existent traits are not observable.

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4. Current and future research is moving in the direction of compound traits and components of traits. a. Construct – core self-evaluations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

b. Compound – core self-esteem c. Components – efficacy, neuroticism, locus of control 5. Additional research supports the use of objective personality inventories based on Socioanalytic Theory and aspects of a. Getting Along b. Getting Ahead 6. These concepts are relevant to leadership ability and managerial potential.

7. Controversy surrounding objective personality inventories focuses on intentional response distortions.

8. Response distortions can be controlled for using Honesty Tests a. Tellegen’s Multidimensional Personality Questionnaire - Unlikely Virtues Scale i. Adjust an applicant’s score ii. Use the UV Scale as selection instrument iii. Limited to large organizations and specific situations b. Pearson Read London House i. Overt Integrity Tests ii. Personality-oriented Measures c. Hogan Personnel Selection Series - Reliability Scale d. Conditional Reasoning Measurements D. Leadership-Ability Tests 1. Generally assess providing consideration (getting along) and initiating structure (getting ahead).

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2. Examples include a. Leadership Opinion Questionnaire .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

b. Leader Behavior Description Questionnaire c. Supervisory Behavior Description Questionnaire E. Projective Techniques 1. Generally assess individual personality influence for perceptions of work experiences 2. Examples include a. Rorschach b. Thematic Apperception Test c. Miner Sentence Completion Scale (MSCS) – measures motivation to manage (MTM) i. Authority Figures ii. Competitive Games iii. Competitive Situations iv. Assertive Role v. Imposing Wishes vi. Standing Out from the Group vii. Routine Administrative Functions F. Combing Objective and Projective Motivation to Manage assessments 1. Leadership Motive Pattern (LMP) a. Need for Power (nPow) b. Need for Achievement (nAch) c. Need for Affiliation (nAff) 7

d. Need for Self control (nCon) 2.

LMP within Bureaucracy .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

a. nPow – influential b. nAch – imp in nontechnical jobs c. nAff – low d. nCon – high 3.

LMP for Entrepreneurship a. nPow - high b. nAch – very high c. nAff – low d. nCon – high

G. Another MTM assessment is the Job Choice Exercise (JCE) 1. 24 decisions - hypothetical jobs 2. Resulting in scores for a. nPow b. nAch c. nAff 3. Related to MTM is Motivation to Lead (MTL) a. affective-identity b. noncalculative c. social-normative H. Personal History Data 1. Assesses previous behaviors & characteristics as predictors of future success.

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2. Goal for managerial selection becomes a predictive model considering a person’s situational characteristics a. with the attributes reviewed decision makers .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

b. relative to the organization’s business strategy c. relative to the organization’s environmental conditions 3. Less subject to distortion bias I. Peer Assessment 1. Peer assessments generally ask whether a person will do well in given situations 2. Peers may be asked to give a. Nominations Ratings b. Nominations Rankings 3. Peer assessments must take into consideration a. Influence of friendship b. Need for cooperation c. Length of peer interaction J. Clinical Combinations of Individual Assessments 1. Generally completed by a psychologist hired by an organization 2. Typical dimensions measured include a. Interpersonal skills b. Judgment & analytical skills c. Organization & planning d. Intelligence e. Supervisory skills f. Emotional maturity 9

g. Leadership h. Energy and drive .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

V. Work Samples of Managerial Performance A. Leaderless Group Discussions (LGD) 1. Raters observe the LGD and then complete trait rankings a. Aggressiveness b. Energy level c. Persuasiveness d. Self-confidence e. Selling ability f. Oral communications g. Resistance to stress 2. LGD ratings produce reasonable reliability & validity coefficients a. Reliability coefficients ranging from .62 to.83 b. Validity coefficients in the .20’s B. In-Basket Test 1. Raters observe the work produced in simulations & complete skill rankings. a. Oral communications b. Planning c. Organizing d. Self-confidence e. Written communications f. Decision making g. Risk taking 10

h. Administrative ability 2. Rankings produce reasonable reliability, validity & discriminability. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

a. High face validity b. High discriminability c. Training validity ranges from .18 to .36. d. Predictive validity ranges from .19 to .32 in various studies.

C. Business Game 1. Candidates are given roles to play while judges act out additional roles and complete ratings.

2. Limited research is available.

3. Results are promising with validity coefficients ranging from .20’s to .60’s.

D. Situational Judgment Tests (SJT) 1. Situations may be written, verbal, or visual.

2. Candidates justify their reasoning and receive rankings from their reasonings.

3. Reasonable reliability & validity coefficients are produced.

4. SJTs have an advantage of being relatively inexpensive to develop.

5. SJTs tend to have less adverse impact.

6. SJTs may be limited by construct definitions.

VI. Assessment Centers (AC) A. AC – another method, not a place 1. ACs have been in use since World War II to select espionage candidates.

B. Organizations adopting & adapting the AC method include approach 1. AT&T 11

2. IBM 3. General Motors .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

4. Ford C. AC operational aspects 1. Managerial Level & Purpose a. There are no exact rules. b. The most common reasons for sending a person to an AC include 1) selection for promotion 2) training needs 2. Duration & Size of the AC will depend upon a. the level of the position b. the importance of the position to the organization 3. In general, organizations can plan on a. 1 day, 5 assessment tools – entry level b. 3 days, 10 assessments – officer c. 5 days, 25 assessments – CEO, CFO 3. Training the assessors must be considered, as well. a. Per the Guidelines and Ethical Considerations for Assessment Center Operations, 1989 1) Knowledge of organization & job 2) Assessment techniques 3) Performance knowledge standards 4) Assessment center forms 5) Evaluation, rating, & data-integration 12

6) Feedback procedures

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

7) Oral & written feedback techniques in role-play or fact-finding exercises b. Frame of Reference training may be helpful as well.

4. Performance Feedback a. Knowledge of AC results are critical to development efforts.

1) Negative feedback does not lead to any more turnover than does positive feedback but 2) Individuals must be given a chance to refute findings b. AC results should be considered 1 part of appraisals.

5. Reliability of Assessment Process a. Ratings appear to be stable over time. b. Standard procedures are important. c. Standardizations include 1) Instructions 2) Assessor/candidate acquaintance 3) Time limits 4) Assessor consensus discussion 5) Assigned roles 6) Exercise presentation order 6. Validity of Assessment Process a. Face validity appears to be high to participants and assessors. b. There is reasonable validity for 13

1) Consideration/awareness of others 2) Communication .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

3) Drive 4) Influencing others 5) Organization & planning 6) Problem solving 7. Fairness & Adverse Impact a. ACs appear to operate around the 60th percentile (40% possibly impacted) b. Cognitive tests operate around the @20th percentile (80% percent potentially impacted) c. No differences in the predictive validity coefficients (.34 to .39) 8. Utility (cost versus benefit) a. Costs are minimal considering the risk of hiring wrong person or of placing existing employee in wrong managerial position. b. Costs can be controlled by using previously mentioned guidelines per position level and position importance.

9. Potential Problems a. Careless implementation procedures b. Criterion contamination c. Construct validity challenges 1) cross-situation inconsistency 2) poor AC design 3) assessor unreliability d. To improve construct validity, 14

1) Define & select limited job dimensions 2) Include psychologists as assessors .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

3) Use specific situational exercises 4) Develop behavioral checklists VII. Combining Predictors A. Predictors may be combined as needed and as experience or risk dictate.

1. Job knowledge 2. Cognitive 3. Peer ratings 4. Personality 5. Behavioral consistency 6. Integrity 7. Structured interview 8. Overt Honesty 9. Reference checks 10. Work Sample 11. Biographical data B. Each organization should go with what experience indicates & adjust from there.

VIII. Summary A. To improve managerial selection 1. Describe managerial behaviors 2. Develop behaviorally based predictors 3. Understand the relationships between the descriptors and the predictors 15

B. Choose wisely and monitor results to improve managerial selection.

Discussion Questions .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

1. Why is it difficult to predict success in management? Pages 282 - 284 It is difficult to predict success in management because the skill sets required differ from those to succeed at lower organizational levels and these skill sets will vary as the managerial responsibilities change within any given organization. For example technical skill excellence and general business knowledge may be necessary to succeed in an entry level production job, general technical skills and excellent business skills may be necessary for entry level management jobs, while excellent technical skills, excellent business skills, and excellent human resource skills may be necessary for senior level management. Two other challenges for management success prediction include the facts that there are smaller sample sizes available to complete research and that some pre-selection occurs because not all individuals with managerial talent will seek management level positions.

2. Would you place primary importance on g in selecting for the position of HR director?

Why? Pages 286 - 289 First, I would consider whether I am making this decision from within an organization (such as being a member of the executive board) or from without an organization (such as acting as an executive recruiter for a consulting firm). If I am making the decision from within an organization, g would be important but I would not place primary importance on g as I would have foreknowledge about any organizational adverse impact issues and I would have access to behavioral and performance evaluations that could offset the influence of g. In this context, g would be one of several weighted predictors. Other predictors I would include would be average performance evaluations for length of time with the organization, numbers of direct reports, numbers of departments managed, varieties of HR departments experienced, experience with legal reporting, perceived desire to be HR Director.

If I am working from the context of recruiting consultant, then g would be one of two or three primary predictors. The other primary predictors would be industry knowledge and experience and HR experience. I would use the predictors in an additive manner. With each of these predictors, I would set a minimum score with the right to override any result that I determined to have unreasonable adverse impact or that I believed would put an organization at unnecessary risk.

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3. Would you consider not using a valid cognitive abilities test that produces adverse impact? What factors guided your decision? What are the trade-offs involved?

Pages 286 - 287 I would not stop using a valid cognitive abilities test simply because it produces adverse impact. However, I would not let the results of a valid cognitive abilities test .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

prevent me from recommending or selecting an individual. I would use such a test as a guide to monitor change in cognitive abilities over time to make sure that progress in scores is held constant or that increases in g occur. This information would be useful for appraisal information and developmental purposes.

My approach is influenced by the relatively low predictive validity coefficients for cognitive ability tests and by the recognition that even with low predictive validity coefficients, g is still one of the single best performance indicators. To improve selection decisions with g as a predictor, I would include tests for practical intelligence, strategic intelligence, emotional intelligence, and cultural intelligence. These scores would be balanced by experience, professional training, and by assessment center ratings.

The trade-offs for this approach are that some candidates may perceive adverse impact where there is none, that the justice system may disagree that there is no adverse impact, and that the public may disagree as well. However, if adequate records are kept, results are tracked, and reasonable exceptions are allowed, this approach should withstand any challenges and the selected HR Directors should lead the organization successfully.

4. Which personality traits would you use in the selection of managers? How would you minimize the effects of faking? Pages 287 - 291 Using the Big Five personality traits as the selection traits, I would rank the traits in order of importance as conscientiousness, agreeableness, openness to experience, extroversion, and neuroticism. Conscientiousness is necessary to assure that organizational responsibilities are met and that individuals can depend on the manager.

Agreeableness is necessary to insure that individuals who interact with the manager have positive experiences. Openness is important as it allows the manager to understand different points of view and increases the chance that the manager will have original solutions to challenges. Extroversion increases the chance that the manager will be friendly to everyone with who they interact. Finally, neuroticism will increase the pressure that the manager feels to keep up with the administrative details accompanying management.

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To minimize the effects of faking, I would use some the available integrity tests that are on the market. Which integrity test I used would depend on the level of management position under consideration. I would also try to work in integrity related issues during any oral interviews, situational judgment tests, leaderless group discussions, and in-basket tests.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

5. What are the underlying mechanisms for the personality-performance link?

Pages 288 - 290 A more recent approach to understanding the personality-performance link is to consider the contextual variables at work that may effect when traits are displayed. For example, it is important to consider the situation in which a person is working before judging whether the personality trait displayed is intrinsic to the person ore required by the power of the situation. Some of these situations include job demands, distractors, constraints, releasers, and facilitators. Another way to understand personalityperformance mechanisms is from the socioanalytic theory of “getting along” (consideration) and of “getting ahead” (initiating structure).

6. What options are available to mitigate response distortion on personality inventories?

Pages 290 – 291 Some of the options available to mitigate response distortion are to make sure that the selection candidates know that the answers are subject to verification, to make the answers option keyed, and to ask the candidates to elaborate their answers.

Additional options are to use the Tellegen Multidimensional Personality Questionnaire Unlikely Virtues Scale and to use Conditional Reasoning Tests. The Unlikely Virtues Scale can be used independently or as part of the Multiple Dimensional Personality Questionnaire. Conditional Reasoning Tests can be customized to fit the organization or to an industry.

7. You are developing a selection process for supervisors of computer programmers.

Identify the key dimensions of the job, and then assemble a battery of predictors.

How and why will you use each one? Entire Chapter 9, particularly pages 214 – 215 and Chapter 13, pages 291 - 297

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This is an applied question combining the content from chapters 9, 12, & 13. This question would be a good final exam question or could be used as the basis for a semester project. However, student answers should indicate that all selection processes should start with a thorough job analysis and resulting job description. With the job analysis in hand, the next steps should include getting senior level managers to agree to the job descriptions and to receive confirmation from existing computer programmers.

Additional steps in the process should include examining the performance appraisals of the most successful computer programmers and then developing the selection program.

Sources for selection predictors can include the Occupational Network (O*Net), the U. S. Department of Labor, the U. S. Bureau of Labor Statistics, and the U. S. Education and Training Administration. Additional sources of selection predictor information include cognitive ability tests and in-basket tests. The O*Net and other government information sources are useful for existing standards and can be used as minimal selection .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

standards. Cognitive ability tests and in-basket tests can be used as moderating variables. Finally, biographical data should be included to confirm verifiable education, experience, training, and references.

8. What are the advantages of a well-designed training program for assessors in assessment centers? What are the key components of a sound training program?

Pages 306 - 308 The advantages of a well-designed assessment center assessor training center include increases in the reliability of the ratings (+.58 to .90) and reductions in cognitive bias. All assessment center programs should consider the standard duration and size of the program and should allow adequate time for feedback. In general, organizations should plan for 1 day, 5 assessment tools – entry level 3 days, 10 assessments – officer 5 days, 25 assessments – CEO, CFO A well- designed training program will include (per the Guidelines and Ethical Considerations for Assessment Center Operations, 1989) 1) Knowledge of organization & job 2) Assessment techniques 3) Performance knowledge standards 4) Assessment center forms 5) Evaluation, rating, & data-integration 6) Feedback procedures 7) Oral & written feedback techniques in role-play or fact-finding exercises Frame of Reference training may be helpful as well.

9. Describe the “construct validity puzzle” regarding assessment centers. What are the key pieces in the puzzle? Pages 310 - 311 The assessment center potential problems can be described as the challenges of how assessment materials are presented and how responses are evaluated. Another problem challenging assessment centers is that of subtle criterion contamination inflating assessment validities. A third problem is that of the “construct validity puzzle.”

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The “construct validity puzzle” is the phenomenon that correlations between different dimensions within exercises are higher than those same correlations between the same exercises across exercises suggesting that assessment tool performance is measured but not individual trait measurements. Three issues behind this include (1) cross-situational inconsistency, (2) poor assessment center design, and (3) assessor unreliability. Construct validity can be improved by (1) defining & selecting limited job .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 13 – Selection Methods Part II: Managerial Selection

dimensions, (2) include psychologists as assessors, (3) using specific situational exercises, and (4) developing behavioral checklists.

10. What are some advantages and disadvantages of work samples as predictors of success in management? Pages 298 - 303 Advantages of work samples as predictors include increased validity coefficients with a recent meta-analytic study showing an average validity coefficient of +.54. Other advantages include high perceived face validity, high acceptance of results from participants, decreased racial bias, decreased gender bias, and reduced adverse impact.

While the advantages are substantial, there are some potential disadvantages as well.

These include the time and cost to develop an appropriate assessment center or the contractual expenses associated with consulting services. Even with the costs, though, the substantial increases in the quality of management selection decisions are worth the organizational investment.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

Overview As an extension of the processes surrounding the selection of human resources, Chapter 14 – Decision Making for Selection presents a discussion of both the judgmental (clinical) and mechanical (statistical) analyses available to support selection decisions. The discussion begins by reviewing classical validity considerations and methods. Multiple regression statistical processes are reviewed with a focus on predictor and suppressor variables. Alternative predictions models are discussed including multiplecutoff and multiple-hurdles. Following this review, the chapter presents the importance of looking at the effect of selection decisions on the entire organizational operations. The last half of the chapter describes current decision-making theory within selection decisions and the cost benefits of these decisions for organizations. The chapter concludes with several utility (cost benefits) models including the Angoff Model, the Naylor-shine Model, and the Brogden-Cronbach-Gleser Model.

Annotated Outline I. At a Glance A. Selection decisions are most important when 1. the number of applicants exceeds the jobs needing to be filled.

2. organizational success depends on the people to complete jobs.

B. Classical validity assessments for selection decisions depend on 1. accuracy of decisions or 2. prediction efficiencies C. Simple & multiple regression statistical analyses substantiate classical validity studies 1. Simple regression may not consider all relevant variables 2. Multiple regressions may allow strong variables to offset weaker variables D. Some placement decisions cannot tolerate such weaknesses in validity 1. Pilots 2. Surgeons 1

3. Judges E. Decision theory attempts to address the weaknesses of classical validity statistics .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

1. Recognizes strengths in predictions 2. Accounts for the importance of outcomes based on these decisions a. Consequences for individuals placed b. Consequences for organizational survival c. Consequences for payoffs – cost & benefit utilitarian analysis II. Personnel Selection in Perspective A. Selection exists because there are imbalances between 1. the numbers of people applying for jobs and 2. the numbers of jobs available to be filled B. Personnel selections impact individuals C. Personnel selections involve decision-makers who make performance predictions 1. Requiring measurements (behavioral data collection) & 2. Subsequent forecasts (predictions) D. Traditional selections are based in the technical aspects of psychometrics E. Current decision-making theory focusing on the importance of the outcomes 1. To the individuals selected 2. To the organizations dependent on individual(s) performance(s) 3. To optimize the utility (cost benefits) of selection decisions III. Classical Approach to Personnel Selection A. Selection decisions attempt to maximize benefits from individual differences B. Goal is to select those individuals who possess the most predictive characteristics C. Classical Decision-making Approach 2

1. Conduct job analysis (THIS IS FIRST & IS MOST IMPORTANT) a. Select criterion (criteria measures) and Determine Predictor(s) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

b. Measure criterion and / or measure predictor 2. Assess the relationship strength between the criterion & predictor a. If strong & yes, i. tentatively accept candidate ii. permanently accept through cross-validation b. If strong & no, i. reject the predictor ii. select a different predictor 3. If there is no relationship, repeat the process until validation established IV. Efficiency of Linear Models in Job-success Prediction A. Linear models assume that the algebraic formula for the slope of a line is the correct way to understand how employment decisions about people are made.

1. Linear decision-making models are considered robust.

2. In this sense, robust means a strong and powerful way to make a selection decision.

3. Linear models may use a. Least square regression procedures to determine variable weights b. Subjective weighting for variables c. Unit weights for variables B. Unit Weighting – all predictor variables weighted by 1.0 1. Appropriate when a. Scaling items b. Populations change over time 3

c. Predictors are combined into composites 2. Do as well as optimal weighting when .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

a. Applied to new samples b. Sample size is below the critical sample size 3. Critical sample sizes for maximized significance a. N = 40, when 2 predictors b. N = 105, when 6 predictors c. N = 194, when 10 predictors 4. Other unit weighting strengths a. Do not consume degrees of freedom b. Estimated without error c. Cannot reverse true relative weights of variables C. Suppressor Variables 1. Are variables not related to the criterion but may be related to the predictor-criterion 2. In other words, suppressor variables act like moderators 3. The goal for predicting decision outcomes is a. to identify those predictor variables b. that will account for (explain) decision variance c. while having no relationship to other predictors d. while also having a unique relationship to the criterion 4. Suppressor variables are understood to exist, their true effects are not always easy to demonstrate and are believed to have modest overall effects V. Data-combination Strategies A. Data measurement 4

1. Mechanical Strategies – statistical in nature

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

a. include individual scores or measurements by instruments such as ability tests, aptitude assessments, knowledge inventories b. scores are combined to predict outcomes 2. Judgmental Strategies – clinical in nature a. include subjective assessments or scores based on impressions b. scores are combined to predict outcomes B. Data Collection may also be judgmental (clinical) or mechanical (statistical) 1. Pure Statistical Strategy – data collected and combined by equations a. Scorable application blanks b. Biographical information blanks c. Test batteries 2. Pure Clinical Strategy – data collected and combined judgmentally a. open-ended interview ratings b. subjective impression ratings 3. Modified Clinical Strategy – a. Behavior Trait Rating – based on interview information summarized on standardized form b. Profile Interpretation – based on objective inventory information, interpreting the results without knowing or meeting the candidate i. California Personality Inventory ii. Myers Briggs Inventory 4. Clinical Composite Strategy – most common a. Data collected objectively & subjectively 5

b. Data combined subjectively 5. Mechanical Composite Strategy – .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

a. Data collected objectively subjectively b. Data combined mechanically, for example, multiple regressions C. Effectiveness of Alternative Data-Combination Strategies 1. Based on research from the 1960s, regardless of collection strategies, a. pure clinical strategies were never superior b. pure statistical and mechanical composites were never inferior c. In other words, mathematically based mechanical decisions were better overall 2. Reasons for these findings a. Accuracy of the decisions may depend on accurate weightings b. Accurate weightings are not possible subjectively (judgmentally) c. Mechanical methods can continue to adjust findings while humans seem to be limited in ability to absorb more & more information d. It is hard for human decision makers to remove their own needs, biases, wishes, responses e. Strengths of subjective decisions seems to be in their ability to compliment mechanical data 3. Summary – a. Collect data objectively and subjectively b. For best decisions, combine the data mechanically VI. Alternative Prediction Models A. Multiple Regression Model 1. Assumptions 6

a. Linearity – that the relationship between behaviors & characteristics to an outcome (effective performance) can be represented by a line

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

b. Trait Additivity – that by identifying relevant traits, the accuracy of the line can be increased c. Compensatory Interaction – that while the weights for the traits will remain constant, actual traits will vary such that strong traits can make up for weak traits 2. Sample sizes are important with larger samples improving results 3. Strengths a. handles nominal data b. handles nonlinear relationships c. handles linear and nonlinear interactions d. can accommodate multiple jobs with same or different predictors B. Multiple-Cutoff Approach 1. Assumptions a. A minimal level of proficiency is required on one or more variables b. The relationship between predictors and outcomes is curvilinear i. a minimum is necessary ii. increases beyond a certain point do not matter 2. Setting a Cutoff a. With only one cutoff, may use either Angoff Method or Expectancy Chart b. To set a cutoff score, must consider i. number of openings per position, ii. number of applicants, 7

iii. ratio of successful applicants given historical performance of incumbents iv. typical hiring rate .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

c. Guidelines i. Determine if cutoff scores make sense ii. Recognize that there may not be a single best cutoff method iii. Begin with a job analysis iv. Must consider validity & job-relatedness of all assessments v. Minimum cutoffs must be related to the job performance vi. If judgments are used, use adequate number of judges vii. Consider statistical and legal issues surrounding cutoffs viii. Set cutoffs high enough to ensure performance 3. Angoff Method a. Multiple judges rate each item’s minimum with a barely competent person in mind b. Judges’ ratings per item are averaged for each item c. Items’ averaged ratings are summed for minimally acceptable score d. Advantages i. Easy to administer ii. As reliable as other judgmental methods iii. Intuitive appeal as experts judges form the decisions 4. Expectancy Charts a. With past performance data as comparison & a given predictor score b. how many successful employees can an organization expect given selection ratios i. Use raw hiring data to determine 8

1) Number of applicants 2) Number hired .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

3) Tenure of hires 4) Performance of hires ii. Use standardized charts per industry C. Multiple-Hurdle Approach 1. Includes multiple-regression and multiple-cutoff decisions 2. Adds perspective of time or a degree of provisionality a. Temporarily accepted or hired b. Permanent acceptance or hire dependent on future scores 3. Appropriate when training is long, complex, expensive a. Air traffic controllers b. Surgeons c. Financial specialists d. Tenure track professionals VII. Extending the Classical Validity Approach to Selection Decisions: Decision-theory Approach A. Classical validity – using a selection battery that explains the highest proportion of variance 1. Measurement based 2. Prediction determinant B. Taylor-Russell Decision Theory – includes 1. Classical validity and 2. Selection ratio (openings to applicants) and 3. Base rate (successful performers) 9

4. This yields information about success ratios of those hired and is a. sensitive to contextual issues .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

b. sensitive to organizational issues C. Selection Ratio – value is influenced by existence of quotas 1. When the ratio approaches +1.0, hire essentially every applicant 2. When the ratio approaches 0, hiring is very selective 3. Surface meanings may support selectivity but a. with greater selectivity, recruiting expenses will increase b. actual organizational budgets may not allow recruiting increases 4. When SR is flexible and standard is satisfactory performance (not best), a. can change to an optimal cutoff score or b. can change to a tolerance for less than best performance c. object is to decrease both i. erroneous acceptances ii. erroneous rejections 5. Challenge is that not everyone can follow the statistical logic D. Base Rate (successful performers) – 1. Measurements must add incremental validity to decisions 2. Decisions using the measurements must be better than decisions made without the measurements 3. If base rates are high (jobs are easy to perform), measures may not matter 4. If base rates are low (jobs difficult to perform), measures may be critical 5. Predictors should be added based on their ability to increase predictions E. Utility Considerations 10

1. Most organizations focus on erroneous acceptances are more costly a. Risk of life .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

b. Threat of lawsuits c. Injury to existing employees 2. Few organizations consider erroneous rejections except in terms of out of pocket expense to the organization a. Administrative expenses b. Legal defense F. Evaluation of the Decision-Theory Approach 1. Classical validity studies focus too much on selection 2. Selection decisions need to be considered with the entire HR System in mind and with the complete organizational operations as outcomes 3. Decision-theory emphasizes selection ratios, base rates, and the organizational impacts of HR judgments (decisions) and requires only that a. Predictor based decisions divided into two mutually exclusive sections b. Criterion data can be divided into two mutually exclusive categories, too c. The two sets of data can be compared 4. Decision-theory data based on actual numbers of people in categories 5. Decision-theory data not limited to correlational data 6. Weaknesses a. Errors of measurement not considered b. Some people may be treated unjustly (falling just below cutoffs) c. To minimize this, keep decisions relative to their use i. predicting attributes is appropriate 11

ii. predicting measurements is not appropriate VIII. Speaking the Language of Business: Utility Analysis .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

A. HR Utility = cost of HR operations & organizational impacts relative to benefits 1. Selection decisions should improve operations beyond benefits without use 2. Quality definitions a. proportion of successful selections b. average standard criterion score for selections c. payoff to organization for using the selection decisions B. Naylor-Shine Model – generally more applicable than Taylor-Russell method 1. Assumes linear relationship between validity and utility of selections 2. Defines utility as increase in average criterion scores 3. Assumes that new predictors added to existing selection battery 4. Does not require employee classifications as satisfactory or unsatisfactory 5. Naylor-Shine Model answers questions a. With specific SR, what will be the average performance of those selected? b. With desired SR, for those above the cutoff, what will the mean criterion score be? c. With desired improvement in criterion, what SR should be used?

6. Most appropriate when performance cannot be put into dollars (prediction of labor turnover) C. Brogden-Cronbach-Gleser Model 1. Assumes only that test scores and actual performance are linear in nature 2. Also assumes normal distribution of test scores and performance 3. Supports decisions to use selection with low validity when standard deviations are high 12

D. Further Developments of the Brogden-Cronbach-Gleser Model 1. Ability to separate costs for recruitment and selection .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

2. Alternative SD Estimation Methods a. percentiles (averages of estimates at 15th, 50th, 85th) b. average salary (40% to 70% of mean salary) c. Cascio-Ramos estimate of performance in dollars (CREPID) – relative worth of job tasks d. Break-even analysis – considers HR contributions relative to costs e. superior equivalents & system effectiveness – how many 85th performers needed to produce what fixed number of average 50th employees produce 3. Integrating selection-utility with capital-budgeting a. Utility = Returns minus costs b. Implies using only those HR practices that increase value c. Weaknesses – i. Does not look at time value of money ii. Ignores concept of risk iii. Ignores taxation payoffs 4. Assessing relative gain or loss per selection alternatives – best to consider costs as long-term investments rather than in terms of quick returns a. Developmental in scope b. Productivity increases c. Labor costs reductions d. Total employees required reduced e. Financial returns E. Application of the Brogden-Cronbach-Gleser Model 13

1. Top scoring candidates may not accept offers 2. Discrepancies between expected & actual performances .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

3. Influence of general economic conditions on utility estimates 4. Managers may not believe the results or may resist using data a. may not trust the motivation b. may not believe in the source c. may prefer individual responsibility d. may not understand the context of the presented information F. Utility and usefulness 1. Multiattribute utility analysis can improve Brogden-Cronbach-Gleser Model a. correlation coefficients b. increased diversity c. reducing minority recruitment costs d. organizational flexibility e. organization’s public image (impression management) 2. Considering multiattributes includes more of the effected decision-makers IX. The Strategic Context of Personnel Selection A. Profit maximization and cost minimization are common B. Strategic opportunities will vary per institution C. Most selection systems assume fixed or static validity & standard deviations 1. this assumption may be false 2. this assumption may be true 3. risks associated with both situations needs to be considered as part of organizational operations 14

X. Summary A. Classical validity stresses .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

1. measurement accuracy & predictive efficiency 2. depends on multiple regressions to forecast success 3. is not appropriate when variables are not compensatory B. Non-compensatory models include 1. Taylor-Russell 2. Naylor-Shine 3. Brogden-Cronbach-Gleser C. Non-compensatory models useful for planning information Discussion Questions 1. Critique the classical validity approach to employee selection. Pages 315 - 318 Classical validity assessments for selection decisions focus on the accuracy of selection decisions or on the efficiencies of those decisions. These validity studies depend on the statistical procedures of multiple regressions. The first and most critical step of the validation process is to conduct a job analysis. This analysis needs to identify the necessary selection criteria and the anticipated measurement outcome. The next step is to assess the relationship strength between the criterion & predictor(s). If the relationship is strong, tentatively accept candidate. After their performance is established, permanent acceptance can be determined through cross-validation. If the relationship is not strong, the candidate may be rejected or the predictor variable may be rejected and another variable selected as the predictor. If there is no relationship, the process can be repeated until validation is established.

2. What happens to our prediction models in the presence of a suppressor variable?

Pages 318-320

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Prediction models may be rendered ineffective in the presence of suppressor variables. Suppressor variables may be related to the predictor variables but not the criterion. They may be related to both the predictor and the criterion. They may be related to one or more predictor variables. While conceptually understandable, suppressor variable influences are difficult to isolate. Therefore the typical approach is to increase the number of predictor variables to increase true predictive variances.

However, statistical analyses demonstrate that beyond 4 or 5 predictors, the net increase to predictive accuracies is minimal. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

3. Describe the circumstances under which sequential selection strategies might be superior to single-stage strategies. Pages 326 - 327 When the training for a particular position or job is long, complex, and expensive, a sequential selection strategy is warranted. Sequential strategies are also warranted when there is risk to human life. A sequential strategy to consider is the Multiple-Hurdle Approach. A multiple-hurdle approach includes multiple-regression and multiple-cutoff decisions. This approach adds the perspective of time or a degree of provisionality (i.e., temporarily accepted until hurdles are cleared). Examples of positions where this approach is appropriate are air traffic controllers, surgeons, financial specialists, and tenure track professionals.

4. Why are clinical decision-making processes not as accurate as mechanical processes?

Pages 320 – 321 First, it helps to remember that clinical decisions are judgmental and therefore subject to intentional or unintentional personal bias. Mechanical decisions are based on data obtained from psychometric devices and are grounded in statistical probabilities.

Clinical decisions may be less accurate than mechanical decisions for the following reasons. a. Accuracy of the decisions may depend on accurate weightings b. Accurate weightings are not possible subjectively (judgmentally) c. Mechanical methods can continue to adjust findings while humans seem to be limited in ability to absorb more & more information d. It is hard for human decision makers to remove their own needs, biases, wishes, responses.

Strengths of subjective decisions seems to be in their ability to compliment mechanical data and to help the decision-makers feel better about the human impact of the decisions. The best decisions seem to be made when data is collected data both objectively and subjectively with the final decision reached through mechanical processes.

5. What is the role of human judgment in selection decisions? Pages 320 - 322

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Human judgment may play several roles in selection decisions. One of the roles is the subjective assessment of a candidate’s fit with the organization. In other words, human judgment is one source for the collection of selection data. Another role is the clinical assessment relative to the objective data collected in the selection process. This means that decision makers can adjust the weightings of predictor variables or that they can avoid inappropriate weightings of the predictors. Additionally, human judgment helps decision-makers and candidates believe that the candidates are receiving fair consideration as human beings. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

6. How might an expectancy chart be useful to a decision maker? Page 325 – 326 Expectancy Charts can be useful when decision makers need to understand how many successful employees they can expect to have in the organization and how these employees will contribute to the organization’s success. These charts help decision makers predict performance by comparing past performance data with a given predictor score. This data projects a selection ratio for successful performance. The data includes raw hiring data such as the number of applicants, the number of employees hired, the tenure of the hires, and the performance of those hires. Customized charts can be developed in addition to using theoretical industry charts.

7. Cite two examples to illustrate how the selection ratio and base rate affect judgments about the usefulness of a predictor. Pages 328 - 331 To provide these examples, it is helpful to begin with the definitions of selection ratio and base rate. The selection ratio is the proportion of the number of job openings relative to the number of job applicants. If an organization has 10 openings and 20 applicants then the selection ratio is 1:2 or 0.50. The base rate is the proportion of successful persons using existing selection procedures. Simplistically, if an organization has 5 successful performers out of 10 individuals hired by the procedure, then the base rate is 5:10 or 0.50.

Example one, when 20 people apply for a job and 10 are chosen based on the same selection predictors, it is expected that you will choose the 10 best candidates and achieve higher performance for the organization than would be experienced if the selection decisions were to hire the first 10 apply or 10 of the 20 chosen randomly. If the organization does experience expected or better performance, then the corresponding base rate will be high and confidence in the selection predictors will be confirmed.

However, in a second example, if actual performance is below expectations, then the base rate drops and the accuracy of the selection predictors is questionable. This might lead HRM to change the selection predictors making them more selective (lower ratios) but low base rates could be explained by factors other than the predictors such as the availability of the pool of applicants, general economic conditions, pressure to fill positions quickly, minimal recruiting budgets, and work-force demographic changes.

These examples, help explain why selection predictors are better thought of as ranges of scores or as optimal cutoff scores.

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8. Why and under what conditions can utility estimates be detrimental to the implementation of a new selection system? Pages 331, 338 – 339 Classical validity utility estimates can be detrimental to new selection systems when they focus only avoiding erroneous acceptances, paying no attention to the .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

potential costs of erroneous rejections. That said, it is justifiable to avoid erroneous acceptances to reduce risks to the organization. Avoiding erroneous rejections are harder to quantify in terms of costs but should not be ignored as the loss of potential benefit to an organization may be more expensive in the long-term outcomes.

Decision-making Models address prediction, measurement, and outcomes.

However, decision-making model utility estimates can be detrimental to the implementation of new selection systems because the estimates do not consider all outcomes. For example, top scorers may turn down the offers. Additionally, there may be discrepancies between expected performances and actual performances of selected individuals. General economic factors may render decision-making theory results ineffective. Finally, managers expected to carry out the decision-making theory results may not trust the statistics or they may believe the statistics to be in error.

9. What are the main differences between single-attribute and multi-attribute utility analyses? What are the relative advantages and disadvantages of each method?

Pages 331 – 332, 340 – 341 The main differences between single-attribute and multi-attribute utility analyses include (1) the focus on initial selection versus longer term performance outcomes and (2) the reliance on a single statistical process (multiple regression) versus the combined decision-making statistical considerations of predictors, measurements, and organizational outcomes. Multi-attribute analyses also allow HRM to evaluate incremental increases in the quality of individuals hired over time, to monitor the proportion of successful performers, to observe increases in the average standard criterion scores, to determine the dollar payoff to the organization, to monitor increased diversity, to measure decreases in minority recruitment costs, to observe organizational flexibility, to monitor the organization’s public image, to increase the involvement of everyone in the organization who is affected by the selection decisions.

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An advantage to single-attribute utility analysis is that it provides a measurement of the success ratio relative to the validity of selection measure, the selection ratios, and the base rates of successful performers. Single-attribute utility analyses are logical next steps to improving selection decisions. They have the ability to demonstrate numerically or mechanically the relationships between erroneous acceptances, erroneous rejections, correct acceptances, and correct rejections. However, most organizations focus more the risk associated with erroneous acceptances, while considering only the .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 14 – Decision Making for Selection

out-of-pocket expenses associated with erroneous rejections. Hence, a disadvantage to single-attribute utility analyses is the focus on prediction and measurement rather than on the effect to the entire HR system.

Multi-attribute utility analyses do address the impact of selection decisions on the entire HR system and can be extended to consider the impact of selection decisions to the entire organization. These analyses allow organizations to understand employee acquisition and separation interactions. The analyses also compel organizations to consider the types of decisions being made.

10. Provide examples of strategic business outcomes that can be included in a multiattribute utility analysis. Pages 337 – 338 Basic strategic outcomes are to increase profits and to reduce operating costs.

Growth in market share and the proper alignment of labor, capital, and equipment resources are other typical strategic outcomes. Strategic business outcomes also can be thought of in terms of the advantages provided by multi-attribute utility analyses. These advantages include incremental increases in the quality of individuals hired over time, improvements in the proportion of successful performers, increases in the average standard criterion scores, increases in the dollar payoff of HRM to the organization, improvements in the organization’s workforce diversity, decreases in minority recruitment costs, increases in organizational flexibility, improvements to the organization’s public image, increases with the involvement of all organizational stakeholders.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

Overview Previous chapters focused on the aspects of applied psychology and HRM necessary to bring individuals into an organization. Chapter 15 – Training and Development (T&D) changes the focus to that of building and sustaining a productive workforce. Building a productive workforce requires that employees have necessary skills and knowledge. Organizations recognize that the skills and knowledge of its workforce must change as the organization responds to pressures requiring organizational change and as the organization plans to change strategically. To facilitate the acquisition and demonstration of these changes, organizations must provide training. Effective training requires knowledge of training designs, of training models, and of learning outcomes. Hence, various training designs are described as well as the considerations of several theoretical models for training. The chapter concludes with a discussion of methods for enhancing learning outcomes.

Annotated Outline I. At a Glance A. When organizations plan to change and to improve 1. Training and development (T&D) occur 2. Skills and knowledge and attitude and social behavior improve B. Training and development is planned change that follows 5 major steps.

1. Analyze current T & D system 2. Determine T & D needs & objectives 3. Create the learning environment 4. Determine best learning sequence 5. Consider other ways of learning C. Theoretical models can guide development efforts.

1. Learning styles a. Verbal b. Auditory 1

c. Hands-on d. Trail & error .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

e. Observation f. Mixed-mode 2. Individual differences 3. Principles of learning and transfer 4. Motivation Theory 5. Goal setting 6, Behavior modeling D. For maximum effect, the models needs to match training needs.

II. Introduction A. Organizations deal with constant change, growth, and development.

1. Important terms to consider for understanding organization development a. Training – activities leading to the acquisition of knowledge, skills, or attitudes needed to do jobs b. Development – acquisition of attributes or competencies for future use c. Learning – relatively permanent change in behavior due to practice or experience implying that an individual has an ability to perform and that the ability lasts for a long time d. Performance – demonstration of learning that is observable, measurable B. Many of the changes and needs for development are driven by 1. Hypercompetition: regional, national & international 2. Increased consumer power 3. Collaboration among suppliers: geographical, organizational 2

4. Need for high levels talent 5. Workforce changes .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

6. Technology 7. Teams C. Organizations realize that to survive they must provide conditions for T&D success 1. Organizational goals include a. provide the best learning b. provide the best growth potential c. remain competitive 2. Individual goals include a. make equal commitment to learning b. take advantage of T&D c. use the new skills for mutual benefits d. remain competitive individually & organizationally D. Organizations spend heavily on T&D 1. United States companies spend between $30 - $50 billion per year on T&D 2. When decisions to provide T & D are made, 3 aspects considered a. Design of the T & D program b. Measurement of the success of the T & D program c. Interaction of the T & D with other organizational departments 3. General T&D characteristics a. are learning experiences b. planned by the organization c. occur after individual joins 3

d. intended to improve organization III. Training Design .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

A. Characteristics of effective training 1. Effective organization training a. Have corporate culture of ongoing training b. Willing to create & redesign organization as a development tool c. Committed to training all levels management d. Are “feedback-rich” e. Invest in necessary resources f. Give adequate training time g. Provide adequate funding 2. Top management support is critical to organizational training B. Interpersonal, social, & structural aspects 1. Organizational support a. Readiness b. Ability c. Motivation d. Transfer of learning e. Managerial support f. Organization climate 2. Individual aspects important as well a. trainability b. personality c. job attitudes 4

d. self-efficacy C. Fundamental requirements for sound training practices .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

1. Basic Training Model a. Conduct needs assessment –what is needed, how needed, definitions 1) organizational 2) KSA and tasks 3) person 4) teams b. Train and implement – at all levels 1) Determine measurement criteria 2) Experimental design c. Evaluate – by chosen criteria d. Validate 1) Training 2) Transfer of training 3) Intraorganizational 4) Interorganizational D. Defining what is to be learned 1. Analyze T&D’s relationship within the organization 2. Determine training need 3. Specify training needs 4. Decompose learning task into basic elements 5. Determine the optimal learning sequence of task 6. Consider other ways to teach the information 5

E. The Training and Development Subsystem 1. Analyze T&D’s relationship within the organization .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

a. Who is to be trained 1) employees 2) collaborators 3) suppliers 4) customers b. When to train c. Where to train d. When to retrain e. What is relationship to strategy 1) relative to existing capabilities, identify needed new capabilities 2) update strategic plans 3) update training needs to match developing strategies 2. Assessing Training Needs a. First level of analysis, identify specific objectives for 1) individuals 2) teams 3) organizations b. Second analysis levels include 1) organizational 2) operations 3) persons 6

4) policy 3. Organization Analysis .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

a. Link strategic workforce plan with training needs assessment b. If workforce is inefficient, train departments & individuals c. Determine level of organization support for transfer of training 4. Demographic analysis is useful for identifying needs of special groups and should be completed for all levels of the organization a. Workers over 40 b. Women c. Diversity management 5. Operations analysis typically include a study of needed KSAO’s a. Increases likelihood that training meets organization’s needs b. Builds support for the training process within the organization 6. Person analysis focuses on the a. determination of whether people have KSAOs b. determination of where training is needed c. the collection of data through critical incidents d. the development of individual development plans (IDP) 1) Statement of goal 2) Definition of areas study 3) Priorities 7. Training objectives are the fundamental steps in training design. a. Objective or goal statements 7

1) can be behavioral or o 2) can be operational .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

b. Each objective includes 1) desired behavior 2) conditions for the behavior 3) standards to judge the behavior 8. Training & Learning Optimum Environments a. Trainees understand purpose and expected outcomes. b. Training content is meaningful. c. Trainees are given learning & recall cues. d. Trainees have opportunities to practice learning. e. Trainees receive feedback about their performance. f. Trainees observe & learn from other trainees. g. Training must be coordinated and arranged properly.

1) Tasks can be analyzed into distinct components 2) Component tasks are mediators of final task or objective 3) Effective training ensures that components mastery leads to final task mastery 9. Even with the best T&D design, T&D works best when trainees a. trainees want to learn, b. try to learn, c. apply the learning, and d. receive feedback from their efforts F. Training Teams 8

1. Training programs adapt to teams by a. Conducting team training needs analysis .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

b. Developing team training objectives addressing task-work c. Designing exercises that allow individual skill and team skills d. Designing measures for evaluating teams and using the feedback to revise training and to assist team with its development 2. Team Needs Analysis a. Interdependencies for team members 1) Determine compatible skills 2) Identify who works well together b. Cognitive skills to function as team 1) Technical skills, experience 2) Familiarity with each other 3) Organizational experience 3. Developing the team training objectives a. Develop training objectives 1) Tasks have to come first 2) Teamwork skills come second and include i. adaptability ii. situational awareness iii. performance monitoring & feedback iv. leadership/team management vi. coordination / communication vii. attitudes (trust, belief in teams, visions) 9

4. Team training exercise designs need to consider a. individual skill and team skills .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

1) team-coordination training 2) sharing information 3) cooperation 4) coordination b. cross-training, guided team self-correction, planning c. measures of effectiveness

IV. Theoretical Models to Guide Training and Development Efforts A. Varying theoretical models exist to improve learning outcomes based on 1. Learning styles a. Verbal b. Auditory c. Hands-on d. Trail & error e. Observation f. Mixed-mode 2. Individual differences 3. Available technology 4. Adaptive guidance B. Trainability and Individual Differences 1. Generally will get the best results (return on the training $) by considering the trainees’ 10

a. initial skills - baselines b. prior achievements .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

c. training expectations d. mental ability 2. Behavioral baselines are important to determine where training should start & for comparing effectiveness after training 3. Adaptive training considers baselines & preferred learning methods before attempting to train V. Principles that Enhance Learning A. Learning can be enhanced through 1. Knowledge of Results (KR) 2. Self-management to maintain changes 3. Adaptive Guidance 4. Reinforcement 5. Practice 6. Motivation 7. Goal-setting 8. Behavior Modeling B. Knowledge of Results (KR) 1. Trainees need to know why a response is incorrect 2. Trainees need to know how to correct responses in the future 3. Reinforcement may be a. intrinsic – from the action b. extrinsic – from the trainer c. qualitative - appeals to senses 11

d. quantitative – how many or much e. informative –next due date .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

f. evaluative – receiving praise C. Transfer of training (TOT) – using what is learned on the job 1. Provide positive organization climate 2. Provide realistic training & situations 3. Give ample experience for tasks, concepts, & skills 4. Strive for principles and facts 5. Link training & job content 6. Guarantee training used & rewarded D. Self-management to maintain TOT 1. Involves “training” to recognize threats to new learning 2. Employees analyze & list events that would pressure them to return to previous behaviors 3. Ideas are listed & discussed for coping 4. Periodic checks are scheduled E. Adaptive Guidance 1. Is similar to self-management 2. Developed to assist technology learning 3. Software reviews results of learning & suggests where more time, more practice, and different sequencing of learning would improve results 4. Is not clear if the learning results analyzed are evidence of mastery though the electronic course or if trainers are interacting with trainees F. Reinforcement 1. Based on principles of classical and operant conditioning 12

2. Reinforcements increase frequency of behaviors 3. Punishments “may” suppress but rarely eliminate behaviors .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

G. Practice of learning 1. Practice – use of what is learned during training a. Best when practice is active b. Best when overlearning, many practice sessions occur c. Length of practice, interest, fatigue, and monotony need to be considered 2. Distributive practice tends to lead to longer lasting results H. Motivation – desire that energizes, directs, & maintains behavior 1. Attitudes of the trainees, the trainers, and the organization are important a. self-efficacy / self confidence b. valence / outcome desirability c. job involvement d. organizational commitment e. career exploration 2. Personality will influence levels of motivation a. conscientiousness b. goal orientation c. anxiety 3. Trainer expectations will influence outcomes – self-fulfilling prophecy a. Pygmalion effect b. Golem effect I. Goal-Setting – conscious intentions regulate behavior 13

1. Evidence support that goal-setting is scientifically valid.

2. Employee commitment to goal necessary. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

3. For complex tasks, engage employee in setting own goals.

4. For simple tasks, assigned goals work.

J. Behavior Modeling – learning through observation 1. Assumption behind behavior modeling is that observations are remembered & repeated.

2. When reproduction is the goal, show only the correct behaviors.

3. When generalizability is the goal, show correct & incorrect methods.

4. For maximum results from modeling a. Supervision must understand & practice new behavior. b. Trainees should practice mentally until it is consistent with self-image. c. Follow modeling with goal-setting and reinforcement.

VI. Summary A. Technology and technique are important.

B. Needs assessment is equally important.

C. Organizational climate is necessary to successful training and outcomes.

D. Learning principles do apply.

E. Organizations must allow positive transfer of training to occur.

Discussion Questions 1. Your boss asks you to identify some key characteristics of organizations and individuals that are related to effective training. What would you say? Pages 345, 346

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When organizations experience effective training results there is an on-going culture of continuous training with the importance of long-term commitment to learning emphasized. These organizations are willing to recreate and to redesign themselves developmentally. All levels of management are deeply committed to the training, development, and learning process. The organizations provide rich feedback

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

to participants. These organizations are willing to invest in the necessary resources, provide adequate funding, and allow adequate training time.

Interpersonal, social, & structural aspects are important to effective training, too. For example, along with organizational support, individuals must be ready to learn, have the ability to learn, be motivated to learn, have an opportunity to transfer the learning to the job, receive managerial support for their learning, and perceive a training friendly organization climate. Individual aspects that are important include trainability, personality, job attitude, and self-efficacy.

2. Transfer of training is important. What would you do to maximize it? Pages 359, 360 To maximize transfer of training, an organization needs to provide a positive organization climate and to provide realistic training & situations. Organizations should give ample experience to practice the tasks, concepts, & skills. Another TOT maximization is for the organization to strive for mastery of principles in additional to facts. Linking training to job content is important for TOT as is guaranteeing that the training is used & rewarded. Individuals can maximize their TOT by applying selfmanagement. For example, individuals should recognize when threats to new learning occurs. Employees can analyze & list events that might pressure them to return to previous behaviors. Then they can discuss methods for coping with the pressures.

Finally, individual can go through periodic checks to confirm their TOT. Adaptive Guidance is another TOT maximization tool. Adaptive guidance is similar to selfmanagement. It was developed to assist technology based learning. Software reviews results of learning & suggests where more time, more practice, and different sequencing of learning would improve results.

3. Outline a needs assessment process to identify training needs for supermarket checkers. Pages 350-354 The first level of a needs assessment analysis is to identify specific objectives for the 1) individuals (checkers), 2) whether teams of checkers will be involved, & 3) what the desired organizational objective(s) is(are). The second analysis level of the needs analysis needs to consider the content (operations) of the training. The third level of the needs analysis assessment must look at individual objectives and goals.

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The organization analysis should link the strategic workforce plan with training needs assessment. If the workforce is inefficient, training needs are departmental and individual. If the workforce is efficient, then training should be individual focused.

Training also needs to determine the level of organization support for the transfer of .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

training. Individual training needs analysis should include a demographic analysis that identifies needs of special groups and should be completed for all levels of the organization. Special groups might include workers over 40, women, and diversity management. Operations analyses typically include a study of necessary KSAO’s.

Individual analyses focus on the determination of whether people have KSAOs and identifies where training is needed. This data may be collected through critical incidents and should result in individual development plans (IDP).

4. What should individual development plans include? Page 353 Individual development plans should include three items.

1. Statement of aims – desired changes in KSAOs as well as attitudes, values, relationships with others 2. Definitions – identifications of areas of study, search, reflection, or testing 3. Ideas about priorities – feelings of preference or urgency, need to reflect organizational needs in addition to personal preference 5. What would an optimal environment for training and learning look like?

Pages 354, 355 An optimal environment for training and learning will reflect seven features.

These features are as follows.

1. Trainees understand objectives, purpose and outcomes of the training experience.

2. Training content is meaningful.

3. Trainees receive cues that help them with learning & recall.

4. Trainees have an opportunity to practice.

5. Trainees receive feedback from multiple sources.

6. Trainees have the opportunity to observe and interact with other trainees.

7. Training is properly coordinated and arranged.

6. Describe the components of an integrated approach to the design of team-based training. Pages 355, 356

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A systemic or component approach for the design of team-based training should include the following.

1. Conducting a team-training needs analysis to identify interdependencies and to identify the cognitive skills & knowledge necessary to complete the work 2. Developing training objectives that address needs at the task level and the .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

team level 3. Designing exercises and training experiences that reflect the needs and objectives, for example, team-coordination, cross-training, and guided team self-correction 4. Designing measure of effectiveness for initial training, for periodic verifications of training, and for future training needs.

7. How might behavior modeling be useful in team-based training? Pages 356, 365, 366 Behavior modeling is based on the assumptions that people learn through observation and that people will be able perform based on what they have learned.

Research supports these assumptions with support being for declarative and procedural knowledge. Behavior modeling would be helpful for team training in several ways. One of the ways is that team members will receive multiple exposures to the same information and they may see multiple ways to demonstrate the actions or to make decisions. Team members may see the actions in varying ways. They may hear the explanations from varying perspectives. Team members will receive multiple sources of feedback in very with minimal delays between action and result evaluation. Another way that behavioral modeling may be effective for teams is that of practice and overlearning. Teams tend to work together more frequently than do groups and therefore increase the opportunities for repetitive overlearning.

8. How do behavioral baselines help researchers to assess behavioral transitions in training? Pages 357, 358 Behavioral baselines act as unique starting points for each person receiving training. When baselines are averaged they can serve as the beginning point for group training investments. Training progress can be determined relative to the changes from these start points. Organizations, generally will get the best results (return on the training $) by considering the trainees’ initial skills, prior achievements, training expectations, and mental ability. Hence baseline considerations are necessary for any evidence based training and development practices.

9. Top management asks you to present a briefing on the potential effects of goal setting and feedback. What would you say? Pages 364, 365 17

I would say to “go for the goal.” Goal setting is an accepted managerial practice, is an effective personal motivation tool, and is a concept with substantial empirical evidence. Goal setting is most effective for clearly defined, reasonably challenging yet achievable goals. Goal setting serves to increase employee commitment. Engaging .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 15 –Training and Development: Considerations in Design

employees in the goal setting process increases the success of complex goals. Once goals are achieved, employees are more likely to set even more challenging goals thus insuring continued organizational success. Achieving goals acts as a built in system for action, feedback, adjustment, more action or in T&D terminology for training, feedback, performance, feedback, validation, feedback, continued development.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

Overview Where the previous chapter presented the reasoning for training and development and described various methods of delivering training and development, this chapter (Chapter 16 – Training and Development: Implementation and the Measurement of Outcomes) focuses on the effectiveness of training techniques and explains how scientific methodologies work with organizational applications to insure learning outcomes. The chapter begins with brief descriptions of information presentation techniques and presents a checklist for determining the most useful technique per training situation.

Next, the chapter describes the importance of measuring training outcomes using multiple criteria to evaluate training outcomes. Measurement outcomes include return on investments (ROI), utility analyses (cost benefits), logic analyses, and managerial influence. The chapter concludes with discussion of the relationships between measurement outcomes and the experimental designs implemented.

Experimental designs must balance organizational limits and practicalities with the need for scientific rigor.

Annotated Outline I. At a Glance A. Historically, training & development (TD) literature focuses on three areas.

1. Information presentation techniques 2. Simulation methods 3. On-the-job training B. To enhance learning outcomes, training designers must 1. Define clearly what is to be learned 2. Match the training technique to the desired outcome C. Training outcomes require measurement and adhere to evidence based practices.

1. Measure outcomes through multiple criteria. a. Vary by time. b. Vary by type. c. Vary by level.

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2. As much as is possible, practice experimental methodologies.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

3. When experimental control is not possible, practice the best possible quasiexperimental method.

4. Goal of training measurement is unambiguous evidence of effective training.

D. TD measurement needs to include individual and organizational utilities.

1. Consider practicality and theoretical significance.

2. Analyze the process and content of the training.

3. Deal with the systemic process of training.

II. Introduction A. TD literature implies that most research to-date focuses on techniques.

1. Many organizations invest in training.

2. Few organizations analyze training needs before choosing the technique(s).

3. Implications from these findings are a. Hardware, software, techniques are important b. Outcomes are overlooked or misunderstood.

B. Techniques may be traditional 1. Behavior modeling 2. Team coordination training 3. Lecture C. Techniques may be technological 1. Interactive multimedia 2. Computer-based business games

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D. Better understanding of multiple criteria to assess of training outcomes is needed E. TD techniques include .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

F. Information-presentation techniques 1. Lectures 2. Conference methods 3. Correspondence courses 4. Videos/compact disks 5. Reading lists 6. Interactive multimedia 7. Intranet and Internet 8. Systematic Observation 9. Organization development through action research (survey analysis) G. Simulation methods 1. Case method a. Trainees receive descriptions of representative situations

b. Trainees identify problems c. Trainees offer solutions d. Trainees receive feedback 2. Incident Method a. Trainees receive sketchy outlines of experienced or theoretical situations b. Trainees must question trainer(s) for clarifications c. Trainees attempt solution d. Trainers reveal missing data 3

e. Trainees and trainers compare solutions 3. Role-playing .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

a. Trainees act out multiple situations for multiple roles b. Trainees discuss the solutions with each other & with trainers c. Trainer gives feedback d. Feedback & solutions discussed 4. Experiential a. Hybrid - combines case study, role-playing, team-coordination b. Trainees review results individually, with groups, with trainer 5. Task model a. Trainees build a physical object with given materials b. Trainees discuss communications c. Trainees gain insight 6. In-basket technique 7. Business games 8. Assessment Centers 9. Behavior or competency modeling H. On-the-job Training 1. Orientation Training – classes, mentoring, meetings 2. Apprenticeships – working in organizations preliminary to employment 3. On-the-job Training – doing the work with supervision 4. Near-the-job Training – similar to on-the-job but occurs offsite 5. Job Rotation – working all organizational jobs per plan 4

6. Understudy Assignments - helpful for executive succession planning 7. Executive Coaching – concentrates on upper-level managerial development .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

8. Performance Management – continuous job effectiveness I. Computer-based Training (CBT) 1. CBT is technology-delivered instruction.

2. CBT represents a shift away from instructor led class-room training.

3. CBT places focus on learners and technology.

4. CBT most successful when a. Designed for meaningfulness to the organization, ease of use b. Balances need for control with guidance c. Provides practice and feedback opportunities d. Facilitates learner’s cognitive awareness J. Technique Selection Checklist 1. Motivate trainees 2. Illustrate skills clearly 3. Provide active learning 4. Provide practice 5. Provide feedback 6. Provide reinforcement 7. Structured from simple to complex 8. Technique should be adaptable to problems 9. Facilitates transfer of training III. Measuring Training and Development Outcomes A. Why it is important to measure TD outcomes 5

1. TD assumes that behaviors on the job change as a result of TD.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

2. TD assumes that these behavior changes have monetary value for the organization.

B. Other reasons to measure TD outcomes include 1. Deciding the future use of the training program.

2. Making decisions about individual employees.

3. Contributing to the scientific understanding of the training process.

4. Increasing the creditability and visibility of the training function.

IV. Essential Elements for Measuring Training Outcomes A. Decide what to count and how to count B. Within the training context, what counts is 1. Multiple criteria – people, profits, products, customers, services 2. Relationships between criteria – internal and external 3. Experimental controls - as much as is possible 4. Provision for practical and scientific significance 5. Analysis of the content and process of the training 6. Documenting the systems effect of the training with other organizational sub-systems C. Criteria – focus on multiple, refer to Chapter 4 1. Internal and external 2. Individual, group, team, department, division, organization 3. Psychological and utilitarian 4. Trainee, trainer, organization D. Time 6

1. Criteria measurement before training, during training, after training 2. Immediate results, mid-term, long-term results .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

E. Types of criteria – all types of criteria are important 1. Internal – directly linked to the training a. Attitudes b. Achievement on tests 2. External – assessing change on the job a. Ratings by supervisors, peers, subordinates b. Increases in performance, products, projects 3. Qualitative a. Attitudinal b. Perceptual 4. Quantitative a. Turnover b. Absenteeism c. Dollar volume d. Accident rates F. Levels of criteria – apply to data collection and to rigor of analysis 1. Data collection a. Individual b. Group 2. Typical analysis a. Reaction b. Learning 7

c. Behavior d. Results .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

3. Weaknesses of typical analysis a. Largely atheoretical and does not consider cognitive processes b. Overly simplistic c. Puts too much emphasis on the attitudes about training d. Does not consider decision-making, feedback, or marketing 4. Alternative analysis measurement model a. Target - Training content & design 1) Focus - Design, delivery, validity 2) Possible methods - Course ratings, expert judgments, advisory panel b. Target – Changes in learners 1) Focus – Cognitive, behavioral, affective 2) Possible methods – Work samples, surveys, interviews, written tests c. Target – Organizational payoffs 1) Focus – Results, transfer, performance 2) Possible methods – Ratings, surveys, cost benefit analysis G. Additional Considerations in Measuring the Outcomes of Training 1. Quality of inferences can be increased through experimental design 2. Allow at least 3 months before taking measures after training 3. Remember to take more than one after training measures H. Financial Impact Strategies for Measuring Training Outcomes 1. Return on Investment (ROI) analyses consider 8

a. How much the training costs b. How much performance increases can be traced to training .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

c. What are the time frames for the costs and increases in performance d. How much increases need to be offset by other factors 2. Utility analysis considers a. Dollar value of training program b. Duration in years for training effects c. Number of persons trained d. Difference in performance of average trained versus average untrained employee e. Variability of performance of untrained group f. Per-person cost of training I. Why not hold all training programs accountable strictly in economic terms?

1. Financial data is not always unbiased.

2. Financial data cannot control for all outside factors.

3. Collecting training cost data may cost more than necessary training.

J. Influencing Managerial Decision with Program-Evaluation Data 1. Training measures need to reflect and drive strategic organizational change.

2. An example of a training influence model a. Logic, analytics, measures, process b. Also referred to as the LAMP model 3. Consider the organizational context as to the use of ROI, Utility, or LAMP. 4. Framing the training is critical to its acceptance and to organizational commitment.

V. Classical Experimental Design 9

A. TD and aspects of experiments

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

1. Experimental designs help researchers & managers understand the relationships among variables (behaviors, predictors, criteria, outcomes).

2. Experimental designs do not guarantee that manipulated variables cause outcomes.

3. To draw causal explanations from experiments, three conditions must exist. a. The variable of interest must not exist prior to the experiment. b. A relationship between the outcome and the manipulated variable must exist. c. No other explanation for the relationship must exist.

4. Field research must confront additional challenges. Refer to Chapter 7. a. Statistical-conclusion validity b. Internal validity c. Construct validity d. External validity 5. TD and experiments also deal with the challenges (threats) of a. History b. Maturation c. Testing d. Instrumentation e. Statistical regression f. Differential selection g. Attrition h. Interaction of differential selection and maturation 10

i. Interaction of pretest with the experimental variable j. Interaction of differential selection with training .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

k. Reactive effects of the research situation l. Multiple-treatment interference B. Consider the standard experiment design (the following Designs A through D) 1. From a pool of representative participants, participants are randomly assigned to two groups.

2. One group of participants receives manipulation of the experimental (independent) variable and one group does not.

3. After the manipulation, for both groups, measure the dependent variable.

4. Assuming all other conditions are held constant, any change in the experimental group is attributed to the independent variable.

C. Design A – two groups 1. Participants are randomly assigned to two groups.

2. Neither group receives a pretest.

3. Experimental group participants receive training. Control group participants do not receive training.

4. Both groups are given a posttest (assessment, performance measurement).

5. Differences between the two groups are analyzed.

6. Any differences are assumed to be the result of training.

7. Advantages – avoids pre-test bias, avoids “give away” from repetition 8. Disadvantages (costs) - does not prevent maturation, does not prevent regression D. Design B – No Control group.

1. All participants receive a pretest.

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2. All participants receive training.

3. All participants receive posttest.

4. Advantages – does assess change, does assess individual achievement .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

5. Disadvantages (costs) – does not prevent history, maturation, testing effects, statistical regression, instrumentation E. Design C – two groups 1. Participants are randomly assigned to two groups.

2. Both groups receive pretest.

3. Experimental group participants receive training. Control group participants do not receive training.

4. Advantages – does prevent history, maturation, statistical regression, and instrumentation 5. Disadvantages (costs) – does not prevent selection effects, requires replication for confirmation F. Design D – four groups 1. Participants randomly assigned to four groups. a. Experimental group – receives pretest, training, posttest b. Control group 1 – receives pretest, no training, posttest c. Control group 2 – does not receive pretest, receives training & posttest d. Control group 3 – does not receive pretest, does not receive training, receives posttest 2. Advantages – increases generalizability, allows interaction effect analysis 3. Disadvantages (costs) – statistical analyses complicated, requires large number participants, two of four groups are not trained 4. Highly recommended when possible to use!

G. General Limitations for standard Designs A through D 1. Experiments tend to reflect isolated event.

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2. The experimental design moderates the conclusions.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

3. Power of evaluations sensitive to multiple design aspects.

4. Experiments may fail to consider acceptable costs to organization.

VI. Quasi-experimental Designs (the following Designs E through H) - address issues surrounding variable manipulation and random assignment.

A. Design E – Time-series (similar to Design B) no control group 1. Multiple criterion measures taken before training and after training multiple times 2. Biggest disadvantage – does not control for history effects B. Design F - Nonequivalent Control Group (similar to C) 1. Experimental and Control Groups occur by existing membership in organizational groups.

2. Advantage - tends to be cost-effective.

3. Disadvantages (costs) – does not account for selection-maturation, testing-training effects, or regression effects C. Design G - Nonequivalent Dependent Variable Group 1. One treatment group, compares two outcome variables a. One variable subject to training effect b. One variable not subject to training effects 2. Advantages – a. Controls for testing and Hawthorne b. Controls for unmeasured variable effect c. Disadvantages – does not control for history, maturation, or statistical regression 13

d. Another possible disadvantage is maintaining researcher objectivity

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

D. Design H - Recurrent Institutional Cycle Design 1. One treatment group with smaller groups trained separately 2. Training occurs over time in cycles 3. Groups can act as cohort groups 4. Advantages – controls for history, testing 5. Disadvantages – does not control for selection or maturation effects VII. Statistical, Practical, and Theoretical Significance A. Generally, statistical significance means that the observed change would occur for less than 5% of the participants without the variable manipulation.

1. Statistical significance may not have practical significance to (profits, sales, grievances, etc.).

2. Lack of statistical significance may have practical significance ( formal training not necessary, one training technique better) B. Practical significance generally considers the utility of TD in addition to administrative operations, employee acceptance, and managerial usefulness.

C. Theoretical significance requires statistical significance and practical significance.

1. Theoretical significance requires systemic research.

2. Theoretical significance requires long-term organizational commitment.

D. Another option for studying significance - Logic Analysis 1. Qualitative Data a. Clarity of training goals b. Relevance of methods & contents c. Methods & contents taught 14

d. Evidence of learning e. Expectations in criteria change .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

2. Quantitative Data a. Identify curriculum elements. b. Identify tasks performed. c. Obtain ratings of training and job. d. Correlate sets of ratings. e. Adjust training based on ratings.

Discussion Questions 1. Discuss the advantages and disadvantages of interactive multimedia training.

Pages 369 – 371 Interactive multimedia generally refers to computer-based training. It may include prepackaged training on compact disks, intranet or internet based courses, web with voice by phone interaction, web with chat room interaction, distance learning lectures, and multi-way phone discussions. There are other combinations of multimedia, as well. Each combination of multimedia offers its own set of advantages and disadvantages. However, a consistent advantage of multimedia is that of making the information learner-centered instead of instructor-led. This gives the learner control over how fast they can acquire and master the information. Learner-control also allows repetition as needed without requiring all of the learners to repeat the information.

Other multi-media advantages include flexibility, adaptability, and potential cost savings.

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While the advantages are many, there are potential disadvantages, as well. Initial development can be expensive and may not lead to actual mastery and competencies.

Because skills and knowledge requirements change at a pace as rapid as technological advances, the customized development of multimedia training tools may not be cost effective. Additionally, some skills require practice and experience to achieve mastery.

For example, some knowledge and skills need to be taught through traditional lecture and teacher-student interactions. Surgeons, airline pilots, and athletics are jobs that require the personal interactions between an instructor and a student. Multimedia can be incorporated into many training experiences but should be included by a well reasoned design and delivery and not solely as a cost savings measure.

2. Your boss asks you to design a study to evaluate the effects of a training class in stress reduction. How will you proceed? Pages 372, 381 – 383, 385 – 389 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

The first step I would take would be to clarify why my boss believes that the training is necessary. After documenting and clarifying the reasons, I would ask my boss to define the desirable outcomes and to explain how the results of the training will be used, how many employees are expected to complete the training, what the available budget is for the training, what the timeframe is for achieving the results and how much time will be allowed for the employees to complete the training. Based on this information, I would review existing packaged stress reduction courses and compare those course objectives to my organization’s course goals. If packaged courses meet the criteria, I would choose the top three, contact the vendors and ask to speak with previous course participants. Based on these interactions, I would decide whether to recommend one of the packaged courses or to develop the course in-house.

Assuming that the quasi-experimental recurrent institutional cycle design would work best for this organizational situation and with the managerial decisions and information, I would schedule meetings with all participating employees. During these meetings, I would collect initial stress level data, explain the stress reduction program and the organization’s expectations, and conclude the meetings with a questions and answers session for all of the employees. Subsequently, employees would participate in the stress reduction classes. At the end of the training, stress level data would be collected. During the first year following the training, I would collect stress level (and stress management) data at 3 months, 6 months, 9 months, and 12 months. During the next year, data would be collected at 6 month intervals (18 and 24 months) post training. For the next 3 years data would be collected annually (36, 48 & 60 months).

As participant data is collected, managerial data would be collected, as well, and correlated with participant data. This design will require significant administrative efforts. However, this correlational data can be used to empirically justify the continuation of organizational support for the stress reduction programs and for the inclusion of stress reduction efforts into individual performance management plans.

The data also can be used to justify dropping the support and or changing the support services, as well. Given the training topic, stress reduction, additional data from other existing sources can be used to cross-validate the data and expenses, as well.

3. Describe some of the key differences between experimental and quasi-experimental designs. Pages 379, 385

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Classical experimental designs assume that (1) the desired or expected outcome does not exist prior to the experimental manipulation, (2) the outcome and the experimental manipulation are related, and (3) other explanations for the outcome do not exist. These three assumptions are rarely true within organizational operations or settings. However, classical designs are still useful for research purposes as long as data .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

is interpreted with the understanding of design limitations. Classical designs include a definition of the participants (population and sample of participants), the random assignment of participants to experimental or control group(s), the manipulation of defined variables, analysis of the results, and recommendations based on the analyses.

Quasi-experimental designs acknowledge the challenges facing organizational researchers and offer researchers additional options for collecting empirical organizational data for managerial decision-making. For example, there may be no control groups (employees not allowed to receive training) but there can be sequential and/or recurring institutional cycles for participants. Another example of a quasiexperimental design is that of the nonequivalent control-group design. This design takes advantage of existing groups within an organization but acknowledges that existing group member differences can influence the outcomes as much as the training variable does.

The organizational decision to use classical experimental design versus quasiexperimental designs should be determined by several factors. These factors included the risk associated with the decision, the administrative efforts associated with the research, the perception of the employees and management within the organizations, and the perception of the public of the organization’s research efforts.

4. Your firm decides to train its entire population of employees and managers (500) to legendary customer service.” Suggest a design for evaluating the impact of such a massive training effort. Pages 385 – 388

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A suggested design for evaluating a massive training effort to produce legendary customer service would be a time series, nonequivalent control group, recurrent institutional cycle design. This design incorporates 3 quasi-experimental designs and is an example of the flexibility that research designs can include. For example, since the entire population is to be trained, it makes research “sense” to test (or to measure) existing customer service levels before training. It also makes time and research sense to evaluate customer service during the training, at the conclusion of the training, and at dates subsequent to the training (3 months, 6 months, 1 year, 2 years, etc.). The nonequivalent control groups aspect allows researchers to gage training effectiveness relative to those who have not been trained and to consider existing groups within the organization. This analysis can identify groups requiring additional training and groups that may need additional managerial support. The recurrent institutional cycle aspect allows the organization to account for historical data and for interactions with other organizational events. While this design requires major administration in the design and data collection, the information gathered would be extremely valuable. The design does allow automation to assist the analysis and flexibility with regard to managerial .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 16 –Training and Development: Implementation and the Measurement of Outcomes

reporting. Once implemented, the design could be self-sustaining allowing the organization and the industry to benefit from longitudinal analyses, too.

5. What additional information might a logical analysis of training outcomes provide that an experimental or quasi-experimental design does not? Pages 389, 390 Experimental and quasi-experimental designs offer increased confidence in the objectivity of results and lead to the analysis of statistically significant effects of training techniques and outcomes. However, statistical significance and experimental control does not always lead to meaningful significance or to clearly understood results. Logical analysis offers a different perspective with regard to “why” training results are experienced by the organizations. Qualitatively, logical analysis may consider the clarity of training goals, method and content relevance, application of the methods and content, the appearance of learning, and actual criteria changes. Quantitatively, logical analysis addresses curriculum elements, job tasks identifications, job tasks requirements, correlations between identifications and requirements ratings, and modifications of the emphasis on tasks training.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

Overview Chapter 17 – International Dimensions of Applied Psychology acknowledges that the impact of globalization is far-reaching for all organizations in all aspects of business in all parts of the world. With that perspective this chapter introduces the concepts necessary to understanding what culture is along with several ways of considering cultures. Following the discussion of culture, the chapter presents five international aspects of applied psychology.

Identification of international managerial talent and the effective selection for international assignments are two of the topics. The final topics include cross-cultural training, international performance management, and repatriation.

Annotated Outline I. At a Glance A. Globalization 1. is a fact, not a theory.

2. is the norm, not the exception.

3. refers to commerce across national borders.

B. Applied Psychologists 1. can improve international understanding and cooperation 2. contribute to a. identifying potential for international management b. effective selection for international assignments c. cross-cultural TD d. international performance management e. repatriation II. Globalization, Culture, and Psychological Measurement 1

A. What is globalization?

1. Satellite transmissions, .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

2. internet businesses, 3. fiber optics, 4. networked computers, 5. telecommuting, 6. free trade, 7. 24/7 atmosphere, 8. international ownership of companies, 9. international trade laws, 10. multinational enterprises B. Modern market capitalism is one result of the internet technologies.

1. Research and development – example Proctor and Gamble 2. Software development – example Linux 3. Telecommunications – example Skype 4. Retail – example eBay III. Globalization and Culture A. Cultures are being globalized through digitization of data.

B. Digital data moves from one nation to another nation faster than we can reason it.

C. Only unique aspects to organizations and work are humans & their skills.

D. Just what is culture?

1. unstated assumptions governing individual and group behavior 2. unconscious influence on cognitions, individual and group identities E. Cultural perspective example – Vertical and horizontal individualism & collectivism 2

1. Vertical – accept hierarchies, Horizontal – accept equality 2. Individualist – complex, loose .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

a. Definition of self – autonomous, independent from others b. Structure of goals – personal goals take priority c. Norms - attitudes, needs, rights are important d. Rationality is emphasized over relatedness 3. Collectivist – simple, tight a. Definition of self – interdependency with others b. Structure of goals – group goals take priority c. Norms, duties, and obligations are important d. Relatedness is emphasized over rationality F. Globalization impacts HRM practices, too.

1. Goal-setting 2. Reward systems 3. Communications 4. Performance feedback 5. Assessment practices 6. Training & development IV. Country-level Cultural Differences A. Power distance - accepting inequality, distance from those in higher positions 1. High – Malaysia, Guatemala, Philippines 2. Low – Austria, Israel, Denmark B. Uncertainty avoidance - cultural acceptance to ambiguous situations 1. High – Greece, Portugal, Belgium, Japan 3

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

2. Low – Singapore, Denmark, Sweden, Hong Kong C. Individualism - extent to which personal goals are encouraged over group goals 1. High – United States, other English speaking countries 2. Low – Guatemala, Ecuador, Panama D. Masculinity – emphasis placed on gender differences and roles 1. High – masculine – Japan, Austria, Venezuela 2. Low – feminine - Sweden, Norway, Netherlands E. Long-term versus short-term orientation - acceptance of delayed gratification 1. High – China, Hong Kong, Taiwan 2. Low – Pakistan, Nigeria, Philippines and the United States F. Psychological assessments need to consider globalization as part of standardization.

G. Using psychological measures across cultures 1. Establish translation - translate, convert to original, resolve differences 2. Establish attributes equivalencies – requires cultural knowledge 3. Confirm that variables’ statistical associations are stable across cultures H. Terminology 1. Expatriate – any person working outside their home country with a planned return to their home or another country (aka, a foreign service employee) 2. Repatriate – any employee who returns to their home country after having worked in another country 3. Home country – country of legal residence 4. Host country – country in which expatriate is working 4

5. Third-country national – expatriate who is transferred to another country while working abroad .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

6. Culture shock – period of time to adjust to new culture averaging 6 months V. Identification of Potential for International Management A. Begin with an understanding of executive competencies.

1. Cognitive & analytical ability 2. Business knowledge 3. Interpersonal skills 4. Commitment 5. Courage to take action 6. Employment experience B. Look for evidence of learning from experience.

1. Proactive learning 2. Seeing mistakes as opportunities to change, to grow 3. Demonstrates flexibility, adaptability 4. Seeks & uses feedback C. Learn to use specific assessment tools, such as The Prospector 1. Measures executive competencies along 8 dimensions a. Is Insightful b. Broad Business Knowledge c. Emotionally Intelligent d. Acts with Integrity e. Has Courage to take Stand 5

f. Takes Risks g. Making a Difference .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

h. Sensitive to Cultural Differences 2. Assesses learning from experience along 6 dimensions a. Seeks Learning Opportunities b. Seeks Feedback c. Uses Feedback d. Culturally Adventurous e. Open to Criticism f. Flexibility 3. To develop international talent, The Prospector can be used for 4 processes a. Gets organizational attention & Investment b. Takes or makes more opportunities to Learn c. Is Receptive to learning opportunities d. Changes as a result of experience VI. Selection for International Assignments A. General Mental Ability is consistently, extremely important 1. Can be measured by omnibus tests or by a battery of tests to determine a. Verbal b. Numerical c. Spatial d. Cultural 2. International predictive validity coefficients range .38 to .57 6

3. Examples of omnibus tests a. Wonderlic Personnel Test – matches skill sets to jobs based on Bureau of Labor Statistics & general intelligence score, in use since 1937 .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

b. Ravens Progressive Matrices – measures spatial reasoning & reasoning by analogy, compares to Stanford-Binet & Weschler 4. Tests that can be combined into a battery a. General Aptitude Test Battery – general intelligence score, requires certification to administer & interpret b. Differential Aptitude Test – 8 tests measuring verbal, math, abstract reasoning, perceptual speed, mechanical reasoning, spelling, language usage, space relations B. Personality – characteristic and consistent pattern of thinking, acting, feeling 1. Current thinking recognizes existence of the Big 5 Factors.

2. For all occupations and for all criteria across many countries a. United States, Canada, 36 European countries – conscientiousness best b. Emotional Stability next best all occupations, all criteria c. Extroversion, Agreeableness, & Openness - predict some performance aspects of some occupations 3. Existing international personality assessment - Global Personality Inventory a. Standardized with 10 project teams in 12 countries b. Developed the assessment using 2 approaches 1) emit – culture from within 2) etic – culture from without c. Research indicates

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1) Conscientiousness predicts work ethic & is necessary for overall success.

2) Extroversion, agreeableness, & emotional stability predict completion of international assignment. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

3) If these 4 factors are high, cross-cultural training justified.

C. Other Characteristics Predicting International Success 1. Tenacity – resilience 2. Communications 3. Adaptability 4. Organizational & commercial awareness 5. Teamwork 6. Self-discipline 7. Cross-cultural awareness VII. Cross-cultural Training (CCT) A. CCT - formal programs designed to teach people from one culture how to adjust & to work effectively in another culture 1. 84% of multi-national organizations offer 2. 77% of these make it optional B. CCT addresses 3 areas 1. Culture – particularly with regard to gender roles 2. Language 3. Practical day-to-day matters C. Effective CCT allows practice prior to exposure, provides feedback – cultural assimilator D. CCT assessment increases awareness and encourages behavioral practice E. CCT correlations 8

1. training and adjustment, 0.12 (p < 0.05) 2. training and performance, 0.23 (p < 0.01) .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

3. training with supervisor ratings, 0.38 4. training with language proficiency, 0.45 VIII. Performance Management (PM) A. Best PM Case includes 4 input sources 1. Person being evaluated 2. Cultural management 3. Organizational management 4. Former expatriate B. Most common PM experience includes 1. organization manager writes up performance after 2. receiving host country management input C. Predictors 1. Differences in accounting, labor laws 2. Cultural stability 3. Time & distance can hinder the PM 4. Market conditions may mean that employees need longer goal times 5. Technical knowledge 6. Personal & family adjustment 7. Political environment 8. Work force stability 9. Currency fluctuations 10. Differences from one’s own culture 9

11. Support from home offices 12. Host-county characteristics .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

13. Type of business D. Criteria 1. Categories a. Objective – gross revenues, market share, return on investment b. Subjective – judgments by host country management c. Contextual – situational influences: political climate, host culture skills, organizational citizenship 2. Performance Criteria Model a. Establish, maintain business contacts b. Technical performance - tasks c. Productivity – volume d. Ability to work with others e. Communication & persuasion f. Independent effort & initiative g. Personal discipline h. Interpersonal relations i. Management & supervision j. Overall job performance E. CCT & PM feedback 1. Individualistic Cultures a. Person being evaluated wants to receive feedback face-to- face b. Examples: USA, Great Britain, Australia 10

2. Collectivist Cultures .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

a. Face to face reviews may be perceived as loss of face or lacking respect b. Examples: China, Japan, Korea, Taiwan IX. Repatriation A. Adjustment areas include 1. Personal finances - potential loss of supplements 2. Reacclimation to home country lifestyle – reverse culture shock 3. Readjustment to home corporation structure B. Planning 1. Expatriation and repatriation is a complete process not a separate process.

2. Needs to occur before 6 months of expat assignment completion 3. Requires organizational strategic coordination C. Career Management 1. Attrition can be costly. a. 25% during assignment b. 27% within 1 year of return c. 25% within 1 to 2 years of return d. 23% within 2 or more years of return 2. Need to increase opportunities to use the international experience.

3. Be cautious of perceived demotions, lateral moves.

4. Best when repatriation includes promotion opportunity.

D. Compensation 11

1. Normal to offer one-time mobility premium upon return to home country.

2. Low-cost loans and other financial assistance may be offered. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

3. Financial counseling is necessary.

Discussion Questions 1. How does the theory of vertical and horizontal individualism and collectivism help to deepen our understanding of cultural differences? Pages 393, 394 To begin to understand the importance cultural knowledge, we need a working definition of culture. Culture may be defined as the implicit rules influencing how individuals think and act and experience emotions. Cultural rules may not be written or expressed as laws but do exert powerful influence within each culture’s realm. Cultural norms give people a sense of personal identity and group membership. To transact business successfully within the current global economy requires cultural skills in addition to business and product/service knowledge.

The cultural theory of vertical and horizontal individualism and collectivism helps deepen our understanding of cultural differences in the following ways. First individualistic cultures are prevalent in loose yet complex societies where there may be many co-existing belief systems. Collectivistic cultures tend to predominate when the society is tight yet simple, developing, and when most individuals possess the same belief systems. Next individualistic and collectivistic cultures have both horizontal and vertical perceptions acting on its cultural members. The interplays between individualism, collectivism and horizontal/vertical forces can be understood by looking at four dimensions. These dimensions are the definition of self, the structure of goals, the emphasis on norms versus attitudes, and the emphasis on relatedness versus rationality.

Individualists will tend to focus on autonomy and independence. Collectivists will focus on interdependencies. Individualists will strive to achieve personal goals.

Collectivists will see group goals and needs as more important. Individualists expect to have attitude variations and to receive respect for personal rights. Collectivists will focus more on social norms and duties to the group. Individualists will focus on rationality to govern behavior. Collectivists will focus on the priority of relationships within groups.

Understanding these differences will improve organizational performance in the human resource management areas of goal-setting, reward systems, communications, performance feedback, assessment practices and training and development.

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2. Explain Hofstede’s five dimensions that describe differences across countries. Identify countries that are high (low) on each dimension. Pages 394 – 396 Hofstede’s five dimensions are power-distance, masculinity, individualism, longterm versus short-term orientation, and uncertainty avoidance. Power-distance refers .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

to the acceptance of perceived differences in degrees of control held by job holders. It can be thought of as an acceptance of a top down managerial style. High powerdistance countries include Malaysia, Guatemala, and the Philippines. Low powerdistance countries include Austria, Israel, and Denmark. Uncertainty avoidance refers to a culture’s degree of comfort dealing with ambiguous or unstructured situations.

Greece, Portugal, Belgium, and Japan are countries high in uncertainty avoidance.

Countries low in uncertainty avoidance include Singapore, Denmark, Sweden, Hong Kong, and the United States.

The emphasis placed on personal versus group goals is the primary characteristic of Hofstede’s individualism dimension. High individualism countries are the United States and other English speaking countries. Low individualism countries include Guatemala, Ecuador, and Panama. Masculinity is the dimension descriptive of a country’s emphasis on gender role differences. Countries focusing on high gender role differences are classified as more masculine cultures. Examples of high masculine countries are Japan, Austria, and Venezuela. Highly feminine countries focus more on gender role equality. High femininity countries include Sweden, Norway, and the Netherlands.

Finally, long-term versus short-term orientation refers to a culture’s focus on delayed versus immediate gratification for material, social, and emotional needs.

Countries exemplifying high long-term orientation include China, Hong Kong, and Taiwan. High short-term orientation countries include Pakistan, Nigeria, and the Philippines, with the United States being relatively short-term oriented.

3. Four broad processes seem to facilitate the development of future international executives. Explain why each is relevant. Pages 397, 398 There are four themes that successful international employees exhibit with regard to learning from experience. These are (1) proactivity with regard to learning opportunities, (2) experiencing mistakes as opportunities to learn, (3) exhibiting situational flexibility and adaptability, and (4) the characteristic of seeking and using feedback. There are four broad processes that tend to develop these exhibited behaviors in future international executives. These four developmental processes include (1) gets organizational attention and investment, (2) takes or makes more opportunities to learn, (3) is receptive to learning, and (4) changes as a result of experience.

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A potential international executive will demonstrate an ability to attract organizational attention and investment by taking reasonable risks with a strong commitment to achieving success. These individuals have the courage to be different and to express viewpoints that differ from the group without offending or threatening .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

other individuals. International executive potential also is demonstrated by people who look for and who make time for learning opportunities. They seek new challenges and grow from the experiences. In other words, their learning experiences are exhibited in behavioral changes, in their cognitive abilities, and in evidence of their organizational leadership.

4. You have been asked to develop a selection program for expatriates to Vietnam.

Based on research results in the applied psychology literature, what would you propose? Pages 399 – 403 I would begin by clarifying how many expatriates the organization expects to need in Vietnam and then focus on the anticipated duration of the assignment and the organization’s plans for reassignment at the completion of the expatriate assignment.

With these clarifications, I would analyze the existing workforce talent inventory for evidence of international executive potential. With the potential candidates identified and with the permission of the organization directors and to the extent that it is reasonable, I would also open up the recruiting process to as many existing employees as is possible.

The pool of candidates would receive as much detail as is possible with regard to the job specifications and a copy of the job description. Along with the job information, I would include a sample of a performance plan and clarifications for the timing of performance appraisals. Due to the personal and financial investments required of expatriate assignments, I would make sure to include a formal Mentoring program as well. The mentor could be another expatriate or a former expatriate. If the organization does not have existing expatriates to draw from as Mentors, then I would contract with professional career coaches to assist the expatriate.

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Assuming that there is a pool of candidates from which to select, I would administer the Global Personality Inventory and the Prospector Questionnaire. I would compare these results to any organizational data as to their general mental ability and documented performance evaluations. I would offer/require cross-cultural training at this point. The trainers could include professional experts in Vietnamese culture and language, former residents of Vietnam, existing or former expatriates from Vietnam, and organizational administrators responsible for passport and visa processing. The trainers should provide a brief history, description of current cultural practices, healthcare issues and support, political climate descriptions, gender role clarifications, weather descriptions, educational opportunities, basic language survival phrases, currency valuations, banking practices, transportation availabilities, and security measures.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

Also, at this point, I would continue the selection process by providing the top 5% of the candidates with cultural information about living in Vietnam. Assuming that the candidates continue to be interested in the assignment, I would assess each candidate’s technical and administrative ability to complete the expatriate job assignment. If any other expatriates are available, I would include them in the interview selection process and request that they provide personal insights into what the successful candidate can expect with regard to work and to living in Vietnam. If funding and time permits, I would send the top 3 candidates to Vietnam for on-sight interviews with peers, subordinates, and support personnel. At this point, I would collect ratings all individuals involved, analyze the results, and make an offer to the top candidate.

If the candidate accepts, then I would provide the family an opportunity to go to Vietnam with the expatriate. I would make sure that a Vietnamese expert would be on hand to assist the family with housing, schools, transportation, day-to-day living practicalities. With this information, the compensation package would be put together and cultural training would be provided for the expatriate and the family. The training would begin locally and continue for up to 1 year after the relocation. As an added note, I would put in the expatriates performance plan that they are required to continue language instruction for as long as they are on the assignment and to act as a mentor for future expatriates, as well.

5. What might an effective performance-management program for expatriates look like?

Pages 405 – 407

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All performance-management programs need to start with thorough job analyses of the positions involved. From the job analysis results, detailed job specifications need to be documented in a job description. The job description needs to be shared with the incumbent and with any individuals required to sign-off on performance evaluations. At a minimum, the job description needs to include 10 dimensions. These ten dimensions include (1) establishment and maintenance of business contacts, (2) technical performance, (3) productivity, (4) ability to work with others, (5) communication and persuasion, (6) effort and initiative, (7) personal discipline, (8) interpersonal relations, (9) management and supervision, and (10) overall job performance. The best performance evaluations will include information from the incumbent, their mentor, host-country supervision, home-country supervision, hostcountry peers, home-country peers, host-country subordinates, home-country subordinates, host-country clients or collaborators, home-country clients or collaborators. Because there are so many contributors, the performance rating form needs to be as simple, yet thorough, as possible and to have gone through a validation process for language and comprehension equivalency. Given the complexity of the .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

performance evaluation data collection, adequate time must be provided and the expectations for completion times need to be well documented, too.

6. Adaptability is a key feature of successful international managers. How does adaptability manifest itself, and how would you train prospective expatriates to be more adaptable? Pages 403 – 405 Adaptability manifests itself in at least eight different dimensions. These dimensions include (1) handling emergencies or crisis situations, (2) handling work stress, (3) solving problems creatively, (4) dealing with uncertain or unpredictable work situations, (5) learning work tasks, technologies, or procedures, (6) getting along well with many different people, (7) being open to and respectful of cultural differences, and (8) physically oriented endurance. While each dimension is responsive to training, crosscultural training has been shown to positively influence and increase success along all eight dimensions. Cross-cultural training provides benefits in at least two ways. It enhances the transfer of knowledge and applied skills. It also increases a person’s ability to deal with other similar situations in additional cultures.

Cross-cultural training can begin with videos or internet websites, proceed to group classes, and then continue with individual instruction, and formal mentoring programs. As mentioned in the previous question on international selection, crosscultural trainers could include professional experts in the foreign culture and language, former residents of the country, existing or former expatriates from the country, and organizational administrators responsible for passport and visa processing. The trainers should provide a brief history, description of current cultural practices, healthcare issues and support, political climate descriptions, gender role clarifications, weather descriptions, educational opportunities, basic language survival phrases, currency valuations, banking practices, transportation availabilities, and security measures. If available, it might be appropriate to bring in home country government officials to discuss relationships between that and neighboring countries.

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If an organization has a long-term commitment in the foreign culture, it would be advisable to intentionally send candidates to the foreign country as a part of their career development plan within the context of existing project assignments. Language exchange programs should be implemented in all countries as a sign of respect and mutual collaboration. Even with this commitment, it remains appropriate to insist on one common language and to assist all employees in all locations to increase their mastery of this common language. As it stands today, the international business language is English. Therefore, all organizations in all countries are exhibiting wise organizational practices when English language instruction is provided and proficiencies are increased. .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 17 –International Dimensions of Applied Psychology

7. Your boss asks you for advice on how to reduce the attrition rate of repatriates. How would you respond? Pages 408, 409 I would advise that the organization rethink their considerations of repatriates. I would advise that repatriation be considered as one aspect of the organization’s executive development career plan. In other words, given the pervasiveness of globalization and the need for many executive with international performance abilities, the organization and its employees would benefit more from recruiting individuals who expect to complete international assignment and to trust that their experiences and efforts fit into a bigger and long-term part of their careers with the sponsoring organization. The long-term career plan can state the possibility and probability of international assignments and can include skills to be developed. The individual performance plans can reflect these skills and accomplishments and can allow individuals the opportunities to target these assignments and to bring the benefits of the experiences back to the sponsoring organization. The organization, in turn, can plan for the development and placement of these experienced expatriates and can implement the necessary support systems for expatriate adjustment. The support systems need to consider adequate financial support and family re-adjustment counseling, as well as, the repatriate’s new job placement. Specifically then, the organization can change their operational plans, can support individual employee plans, and can budget for the needs of their experienced personnel.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

Overview The final chapter of the text is Chapter 18 – Organizational Responsibility and Ethical Issues in Human Resource Management. This chapter focuses on organizational behavior from the triple perspectives of economic success, social obligations, and environmental impacts. The chapter also discusses the interrelationships between these perspectives and the necessity to do what is right above and beyond what is legal and required. Employee, customer, service area, and societal expectations are discussed. The chapter concludes by explaining how organizational research must consider and incorporate organizational ethics at all phases of the research process, from research design, to participant treatment, through data analysis, to the presentation and implementation of research results.

Annotated Outline I. At a Glance A. Organizational responsibility (OR) 1. Definition – organizational actions that are context-specific & accountable to economic, social, and environmental expectations 2. Recognizes that voluntary human behaviors have impacts beyond those of the persons completing the actions 3. Missions a. to enhance human well-being b. to maximize organizational performance c. to elevate public awareness of organizational responsibility B. OR and ethics 1. Rules are responsive to a. social norms b. needs of organizational stakeholders 2. Focal areas are 1

a. employee privacy 1) employee records .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

2) computer files 3) electronic mail, communications b. testing and evaluation 1) applicants 2) employees c. OR research 1) Role ambiguity, conflict 2) Norm ambiguity, conflict 3) All stages of research 3. OR is critical to the HRM relationship process.

4. OR is subject to personal values.

II. Introduction A. Organizational responsibility (OR) 1. Organizational actions that are context-specific & accountable to economic, social, and environmental expectations 2. OR increases ethical actions 3. OR results in moral behaviors 4. OR responds to changes in societal norms a. Increased sensitivity to human rights b. Adoptions of civil rights laws c. Freedom of information B. Important terms & definitions 2

1. Privacy: employee control of personal information, employees’ behavioral freedom

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

2. Confidentiality: expected treatment of personal information provided by employees, subject to laws, rules, relationships 3. Ethics and morality: behavioral values of society 4. Ethical choice: after due consideration of risks and gains associated with actions, the considered best choice 5. Ethical decisions about behavior: decisions that consider one’s own choices in addition to the interests of other people affected by the decisions 6. Validity: for assessment procedure, justified interpretation and use of results III. Organizational Responsibility: Definition and General Framework A. Definition 1. Ethical organization actions and policies improving a. economic performance b. social actions c. environmental performance 2. Examples of OR actions a. Making & sharing profits b. Developing employees, c. Serving clients and customers d. Taking care of the earth and its resources e. Being responsible to local, regional, national, & global communities B. OR Components 1. Applies to all organizations a. Means doing the right things 3

b. Realizes potential of harmful decisions c. Considers all stakeholder expectations .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

1) Economic 2) Social 3) Environmental 2. Critics of OR argue a. Profits may not withstand fair wages b. Profits may not withstand environmental protections 3. IO psychologists are responsible for guiding OR 4. Driving forces behind OR a. Internet and information access b. Globalization and impact to organization structures c. Multi-national collaborations d. Increased accountabilities regardless of organization type IV. Organizational Responsibility: Benefits A. Results 1. Increased customer support, loyalty 2. Increased trust from employees, customers, clients, suppliers 3. Increased production, performance 4. Increased revenue B. Career options, OR management 1. Chief Responsibility Officers (CRO) 2. Compliance departments 3. Chief Ethics Officers 4

4. Internal ethics audit departments V. Organizational Responsibility: Implementation and the Role of HRM Research and Practice .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

A. Implementation Steps 1. Articulate OR vision and values as part of overall organization vision.

2. Identify, prioritize expectations for all stakeholders. a. Employees b. Customers, clients c. Stockholders d. Community e. Government 3. Develop OR initiatives integrated with corporate strategy.

4. Train all employees at all organizational levels to exhibit OR. 5. Institutionalize strategic responsibility management (SRM). a. Define consequences. b. Define rewards. c. Define assessments. d. Include timing.

6. Monitor & report SRM. a. Research is lacking but offers many opportunities. b. Include individual, external stakeholders, external processes.

B. OR Future 1. Increased application of empirical research design, data analysis 2. Changes in performance measurement and reward structures 3. Multilevel research opportunity levels 5

4. Opportunities to develop business cases for OR behaviors 5. Changes in academic curricula all disciplines, especially business .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

6. Extension and improvement of individual level research analysis 7. Development of new careers and revisions to existing job analyses C. Summary 1. OR offers chance to blend employee well-being with organization performance.

2. OR offers chance for HRM researchers and practitioners to develop business cases for OR behaviors.

VI. Employee Privacy A. Conundrum – that which is illegal is unethical, but that which is legal may not be ethical, lawsuits may be inevitable 1. EEO legislation sets minimums but may not meet ethical expectations 2. Professional and federal guidelines do not guarantee ethical results.

3. Individual privacy and freedom of information may be at odds.

B. Issues 1. Kind of information retained 2. How information is used 3. Disclosure extent of information C. Within the United States, organization privacy research results are troubling 1. 87% - allow employees to view personnel but not supervisor files 2. 57% - use private investigation firms to collect information 3. 42% - do not tell employees that private investigation firms are used 4. 38% - have no policy regarding release of information to government 5. 38% - do not require the government to provide subpoenas 6

6. 80% - give information to creditors with no subpoena 7. less than 20% have written employee privacy policies .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

8. more than 50% of managers and HR managers have access to all HR data D. Safeguarding employee privacy 1. Set up guidelines.

2. Notify employees of guidelines.

3. Know state & federal privacy laws.

4. Establish policy preventing employees from waiving their right to privacy.

5. State consequences for policy violations.

6. Allow employees to authorize information disclosure & maintenance.

E. Fair Information Practice in the Information Age 1. Periodically and systematically review HR recordkeeping a. Numbers & types of records kept for current & former employees, & for applicants b. Items in each record c. Uses of info items each record d. Uses of info within organization e. Disclosures made outside f. Extent employees informed & aware 2. Articulate, communicate, and implement these practices a. Limit information collection b. Inform employees of the practices 1) uses 2) practices 7

c. Adopt procedures d. Allow viewing, corrections .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

e. Limit internal use of information f. Limit external disclosures g. Review compliance procedures 3. Other important aspects a. Most important perception, employee controls how information used once released b. Employees participate in collection of information F. Employee Searches and Other Workplace Investigations 1. Guidelines a. Search only for reasons of business safety b. Avoid random searches c. Include all types of searches d. Provide adequate notice e. Do not touch the employees while searching or limit to “effects” (pockets) f. Have witness(es) to all searches g. If theft suspected, conduct away from other employees & on company time h. Conduct search respectfully 2. Five types of legal employee observations a. Electronic – photographic or video b. Stationary – as in office or car c. Moving – following on foot or car 8

d. Undercover – investigators e. Interviews – .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

1) best if voluntary 2) allow attorney if desired 3) provide phones 4) allow breaks 5) should result in written & signed statements 6) witnesses should be present VII. Testing and Evaluation A. Published guidelines are in 1. Ethical Principles of Psychologists & Code of Conduct 2. Ethical Conflicts in Psychology 3. Standards for Educational & Psychological Testing 4. Principles for the Validation & Use of Employment Selection Procedures 5. Guidelines & Ethical Considerations for Assessment Center Operations 6. Guidelines for Test User Qualifications 7. Standards for Educational & Psychological Measurement 8. APA’s Ethical Guidelines B. Surveillance agencies include 1. American Psychological Association (Ethics Committee) 2. State Licensing Boards 3. Academy of Management 4. Society for Human Resource Management 5. Society of Industrial & Organizational Psychology 9

C. Obligations to one’s profession 1. Continuing education .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

2. Staying current with standards 3. Sensitivities to colleagues 4. Industry knowledge 5. Statistical training 6. Knowledge of workers 7. Willing participation peer reviews 8. Other societal changes a. Ethics courses all curricula b. Ethics within each course c. Live case studies (nonprofits) d. Values retreats D. Obligations to those who are evaluated 1. Guard against privacy invasions 2. Guarantee confidentiality 3. Use accurate Information 4. Provide equal treatment and considerations 5. Obtain informed consent 6. Respect employees’ right to know 7. Keep time limitations on information 8. Minimize erroneous acceptance & rejection decisions 9. Treat employees with respect & consideration 10. Treat employees ethically during and after evaluation 10

E. Obligations to employers 1. Steps .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

a. Convey accurate expectations b. Strive for quality information c. Conduct on-going review of decision-making procedures d. Respect employer’s proprietary rights e. Balance employer interests with government regulations and employee rights 2. Expectations a. Must establish organizational corporate atmosphere conducive to ethical behaviors b. Atmosphere applies at all levels, with all contractors & with all collaborators 3. Inclusions a. Formal ethics code b. Ethics officer or ombudsperson c. Ethics committee d. Ethics training programs e. Ethics communication system f. Disciplinary processes F. Individual differences serving as antecedents of ethical behavior 1. Achieve at least a conventional level of moral development 2. Exhibit transformation leadership characteristics 3. Strong cognitive abilities 4. Low narcissism 11

5. Member of a complaint sensitive organization 6. Hold professional position .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

7. Positive about their work 8. Have tenure 9. Recognized for good performance 10. Member large work group 11. Females tend to react to unethical behaviors & to behave ethically 12. Males tend to stand up for and fight for ethics.

VIII. Ethical Issues in Organizational Research A. Issues tend to develop as results of multiple and conflicting roles.

B. Ethical issues at the research-planning stage 1. Research competence 2. Knowledge of ethics guideline 3. Strength of research design 4. Acceptability of the study 5. Risks of not conducting research C. Ethical issues in recruiting and selecting research participants 1. Whether to use volunteers or paid participants 2. Whether to use incentives or to depend on altruism 3. Determining any risks versus benefits 4. Whether the research should be inclusive or exclusive D. Ethical issues in conducting research: protecting research participants’ rights 1. Right to Informed Consent 2. Right to Privacy 12

3. Right to Confidentiality 4. Right to Protection from Deception .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

5. Right to Debriefing E. Ethical issues in reporting research results 1. Misrepresentation of Results 2. Censoring 3. Plagiarism 4. Authorship Credit 5. Data Sharing F. Strategies for addressing ethical issues in organizational research 1. Recognize organizations as “ROLE SYSTEMS” & where there will be an intersection of participants & researchers’ pre-existing roles 2. Intersections to consider a. Role ambiguity – not being sure of role b. Role conflict – performing one role can hinder completing additional role c. Ambiguous &/or conflicting norms – behavior standards (freedom, self-determination, democracy, due process, equity) G. Science, advocacy, and values in organizational research 1. Guidelines a. Distinguish observations from advocacies b. Avoid depending on success stories c. Respect study data limitations d. Beware of pseudo-science research 2. To effectively and fairly blend values and research 13

a. Adopt a broad values model b. Put equal emphasis on “good of employee” and the “good of the organization” .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

c. Define success in societal terms as well as technical & individual terms d. Bring morality into scientific and organization perspectives

Discussion Questions 1. You work for an advertising agency. Develop a privacy-protection policy for email and voice mail communications. Pages 419 – 422 To a certain extent, it does not matter what type of organization an employee works for. Employee privacy tends to be perceived as a human right rather than a changeable organizational policy. With this perception, all organizations are advised to be sure that all employee email and voice mail policies are adopted at all levels of the organization, are made public to all existing employees, are periodically reviewed with all employees, and are included as training for all new hires. It is important for all organizations to communicate to their employees that safety, security, and competitive integrity are the motivations and necessities behind the privacy policies. All employees should be assured of the organization’s intention to maintain employees’ privacy and to guarantee employees’ confidentiality as long as no other individuals are deemed to be at risk and as long as intellectual, proprietary, and competitive integrity is not compromised. The organization should be clear about the organization’s right to evaluate email and voice mails. The organization should be clear about its intention to comply with any governmental (federal, state, county, professional associations) requests to review communications, as well. However the organization should be reassuring that the right will not allow employees to be abused and will allow employees opportunities to respond to any concerns.

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Specific privacy-protection concerns relevant to an advertising agency might include additional considerations and guidelines with regard to the creative aspects of employee communications. Particular attention might be given to communications intended to be humorous but could be misinterpreted if taken out of context. For example, when creative ideas are shared, the agency may institute a policy that the communication begin and end with the qualifier that creative content is included and that the content requires highest protection from intellectual piracy. The agency also could institute and communicate disciplinary actions resulting from misuse and abuse of agency communications. To that extent that it is technically possible and financially feasible, all agency communications should be time, date, origination source stamped with limitations to its use included in the content of the communication. The policy should include that proper use of agency communications is included in all job descriptions and employee performance plans, thus insuring that employees .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

understand that on-going review of their communication behaviors is part of their performance reviews.

To help employees accept the policies, advertising agencies specifically and many organizations in general provide their employees with cell phones, pagers, computers, land line phone services, internet connections, cameras, automobiles, transportation support, and other communication devices. When employees recognize that their employers provide the equipment and pay for corresponding support, employees are less likely to resist the corresponding monitoring of its use.

2. You suspect an employee is stealing company proprietary information. You decide to search his cubicle for evidence. How do you proceed? Pages 422, 423 First, the organization needs to make sure that all employees know that searches may occur if conditions warrant the need. This information should be provided to all employees periodically and should be included in all new employee orientations and training. Periodic internal audits need to occur for all employees with the foreknowledge of all employees. Note that employees do not need to know but may be told when the audits will occur. They do need to know that the audits are a part of normal operations.

Next, depending on the circumstances surrounding the need for the search, determine the timing of the search and who may witness the search. For example, if an employee expresses a concern that their communications or work area has been compromised, the employee should be included in the initial search. Note, that subsequent searches without the employee being present may need to occur, too. If an internal audit discovers reasons for the search, the organization may decide to interview the employee while the cubicle is searched. Circumstances will dictate whether other employees should be aware of and present during the search. If the search is deemed necessary for other reasons, care should be given to overall employee safety first, then to impacts on employees’ trust and confidence in the organization to behave in an ethical manner, and finally, to any subsequent legal challenges that may result if the search is challenged by the affected employees or by other employees.

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Subsequent to completion of the search, the organization should allow the employee(s) to know what occurred, how it was dealt with, and what the consequences have been or will be. Note, that overall safety is the key issue. Note, too, that the organization may need to filter the amount and timing of the information shared but that honesty and integrity will work for the organization better than will disassembling and equivocation. Employees will need to ask questions and may need reassurances.

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Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

3. Describe three specific areas within the general organizational responsibility domain to which HRM researchers can make a contribution and three specific areas to which HRM practitioners can make a contribution. Pages 412 – 415 Three specific areas where HRM researchers can make contributions include (1) economic performance, (2) social perceptions/actions, and (3) environmental impacts.

Three specific areas where HRM practitioners can make a contribution are (1) in the consideration of all organizational stakeholders, (2) in the structure of the organizations, and (3) in the accountability for all employees with regard to organizational information.

HRM researchers and practitioners must work together to make contributions with regard (1) to cooperation and collaborations in research designs and planning, (2) to the recruitment, selection, and protection of research participants, and (3) to the reporting of research results.

HRM research shows that OR tends to increase economic performance for organizations. These results are important as some industries have resisted OR actions believing that the organization could not afford to change. HRM research provides empirical support that OR actions lead to increases in loyalty and support for organizations from their employees, customers, clients, and other stakeholders. HRM research also provides the data to verify that environmentally responsible organizational actions and also to increase the overall operating strength and endurance of an organization. HRM practitioners contribute by implementing and managing the research findings and in communicating these actions to all stakeholders. HRM practitioners also contribute by encouraging and guiding changes to organizational structures appropriate for the industry and organization they are responsible to. Finally, HRM practitioners are instrumental in communicating their HRM policies and the effects of these policies to all employees, managers, directors, investors, regulators, and communities.

4. You need to make the case to your CEO regarding the need to hire a “Corporate Responsibility Officer.” What arguments can you use to make the case regarding the need for this position given the realities of twenty-first-century organizations and the benefits of organizational responsibility? Pages 415, 416

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Since there is a CEO to report to, it seems reasonable to assume that this organization is growing, is adjusting is operations to reflect this growth, and is planning for its continued success. With this as the background, I would begin the case by stating the purpose of the meeting and by defining what the ultimate desired outcome of the meeting will be. Then I would present current empirical data supporting the benefits of OR practices referring to industries and businesses similar to or in competition with our organization. Following the empirical evidence, I would describe how our organization .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

currently does or does not manage OR. This would provide a natural lead into descriptions of the risks our organization faces if we do not implement formal OR functions and oversight. I would follow this with a description of the proposed CRO job description and a new organization structure design with the CRO’s chain of command and responsibilities. The meeting would conclude with a suggested work plan to recruit and implement the new position and to train and prepare the existing workforce to accept and benefit from the CRO position.

5. Discuss the ethical obligations of an employer to job candidates. Pages 423 – 426 The ethical obligations of an employer to prospective job candidates include the laws, social practices, and the expectations of individual candidates. Employment laws may be considered the minimum ethical requirements with regard to recruitment, initial screening, and subsequent selection tests, interviews, situational exercises, placement, and promotional opportunities. Social practices may serve to increase considerations given to candidates. Employers will tend to find that individual candidate expectations are influenced by social practices, too.

Publications that can assist employers with the ethical treatment of job candidates include 1. Ethical Principles of Psychologists & Code of Conduct 2. Ethical Conflicts in Psychology 3. Standards for Educational & Psychological Testing 4. Principles for the Validation & Use of Employment Selection Procedures 5. Guidelines & Ethical Considerations for Assessment Center Operations 6. Guidelines for Test User Qualifications 7. Standards for Educational & Psychological Measurement 8. APA’s Ethical Guidelines Title VII of the Civil Rights Act of 1964 may be of help in addition to other publications by other professional associations such as the Society for Human Resource Management.

Specifically, some of the ethical obligations to candidates are accurate job descriptions, realistic job previews, clear explanations of performance review processes, career path descriptions and options, on-going training and certification expectations, relocation and travel requirements, and genuine benefit packages descriptions. Additional attention needs to be provided with regard to employee data collected, its uses, and privacy commitments, communications policies, and security provisions.

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6. You learn that a close colleague has misrepresented a research finding to make her organization “look good.” What do you do? Pages 431, 432 This is not an easy or easy to remedy situation to deal with. The first thing I would do is to try to determine the circumstances and the situation surrounding the .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

research finding. The next thing I would try to determine is my colleague’s motivation and/or intention behind the report. Finally, I would attempt to evaluate the impact that my colleague’s actions will have going forward.

If I realized that the circumstances and the situation surrounding the misrepresentation caused my colleague to misreport the findings, I would try to find a way to help my colleague recognize what happened and to encourage my colleague to report the corrected findings. If my colleague acted on the correction, I would stay out of the picture. If I determined that my colleague acted in innocence or through genuine misunderstanding, I would encourage my colleague to institute a corrected finding and would stay out of the picture. If I determined that the impact of the misreport was limited to the situation reported, I would talk with my colleague and leave it up to the person to take the corrective action and not to repeat the mistake going forward. If, however, I determined that my colleague intentionally misreported the results knowing that there could and would be future misrepresentatives and increasing impacts, I would verify with my colleague that they knew what they were doing and then would challenge my colleague while reporting the misrepresentation to the appropriate personnel and or professional association, managerial groups, or governing bodies.

7. Is it possible for researchers to be detached from their own personal values in conducting research? Why? Pages 428, 434 - 436 Researchers cannot completely detach themselves from their personal values when they conduct research. However, researchers can recognize that their values can influence them and can develop the research skills necessary to minimize personal values impacts and to maximize their objectivity when designing, conducting, and analyzing research. Researchers also can be careful to distinguish between observations, empirical data, and recommendations. Researchers can acknowledge the limits of their research designs and data. Finally, researchers can emphasize the need to continue ongoing research, to welcome replications and design change suggestions, and to be honest about changes that are indicated based on the available increases in available research evidence.

8. What kinds of ethical dilemmas might arise in conducting research in organizations at each stage of the research process? How might you deal with them? Pages 428 – 436

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Ethical dilemmas can arise at the research planning and design phase, at the participant recruiting and selecting phase, data collections phase, and at the results reporting phase. At the planning and design phase, ethical dilemmas range from researchers’ competencies, knowledge of ethical guidelines, the correct design to choose, and the acceptability of the study. Researchers need to be ethical about their own abilities and seek assistance with their limitations. Researchers have a professional .

Applied Psychology in Human Resource Management 7e Overview, Annotated Outline, Discussion Question Guides Chapter 18 –Organizational Responsibility and ethical Issues in Human Resource Management

obligation to be knowledgeable about research guidelines. Researchers must balance the best research designs with available budgets, organizational needs, and the usefulness of their findings. Finally, researchers must be honest about the acceptability of their research. In other words, it would be ethically wrong to conduct research that will knowingly hurt or harm participants.

With regard to recruiting and selecting participants, researchers need to make every attempt to include a large representative sample of participants. They need to document their efforts. To the extent that the participants are not representative or that the sample size is small, researchers need to be honest about this when analyzing and reporting their findings.

Once participants are selected, researchers need to insure that participants receive informed consent information. Participants’ privacy rights need to be protected.

If there will be confidentiality issues, researchers need to inform the participants and to take appropriate actions. If deception is deemed warranted or is necessary, researchers need to minimize its use and to acknowledge the deception in the analysis and results reporting. Finally, participants should receive debriefing at the conclusion of their participation experience.

Researchers need to practice personal and professional integrity with regard to the data collections phase. For example, it is better to decide at the design phase how to deal with missing or incomplete data. These decisions need to be documented and included in descriptions of the research methodology.

With regard to reporting research findings, researchers must practice personal integrity with regard to the honest interpretation of their research results. Researchers can increase the perception of ethical practices and can improve their own analytical skills by involving trustworthy peer reviewers and by seeking the advice of professionals in areas where the researchers’ know that they may be weak or that their findings might be questioned.

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