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BUS-3420 Study Guide - Final Guide: Personnel Selection, Test Validity, Human Resource Management

Course Code
Grace O' Farrel
Study Guide

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Final Exam Review:
Exam Breakdown:
-6 questions to choose from, choose 4. Each question is worth 10 marks. More short descriptions with
regards to the answers (describe, explain, etc.) 40 marks for this section
-Case Study with 4 no-choice questions, each question is worth 10 marks. 40 marks for this section
-Total 80 marks
-December 15, 2010 from 1:30-4:30p.m.
Chapter 1: An Introduction to Recruitment and Selection:
Should be able to:
-Appreciate the importance and relevance of recruitment and selection to Canadian organizations;
-Know where recruitment and selection fit into the organization as a whole and the human resources
management system in particular;
-Be aware of which professional associations and groups in Canada have a stake in recruitment and
-Become familiar with basic ethical issues in recruitment and selection; and;
-Understand how the rest of the chapters in this book work together to present a detailed picture of both
the practice and theory of recruitment and selection in Canada
Why Recruitment and Selection Matters:
-Best Practices are valid, reliable, and legally definsible. They involve the ethical treatment of job
applicants throughout the process; not necessarily perfect practices. They add value to an organization
and contributes to success (including financial). Best practices also:
-reduce employee turnover and increase productivity
-are responsible for up to 15% of a firms relative profit
-correlate with an organizations long-term profitability and productivity rates
-establish employee trust
-improve the KSA's of current/future employees
-RECRUITMENT: is the generation of an applicant pool for a position or job in order to provide the
required number of candidates for a subsequent selection or promotion program. Done to achieve
management goals and objectives for an organization and must also meet current legal requirements.
-SELECTION: is the choice of job candidates from a previously generated applicant pool in a way that
will meet management goals and objectives as well as current requirements. Selection can take many
functions: lateral transfer or promotion of current employees, training and development of current
employees, external hiring of entry level applicants, etc.
-Systems view of HR: HR is a staff function that needs to support the whole organization and continue
to prove its worth to top management by keeping up with two basic principles:
-HRM must carefully coordinate its activities with the other organizational units and people if
the larger system is to function properly
-HRM must think in systems terms and have the welfare of the whole organization in mind.
-HR Profession: Typically done by in-house HR staff but sometimes done by consulting firms.
Recently recognized as independent profession (CHRP designation).

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-Ethics: are the means by which we distinguish what is right from what is wrong, what is moral from
what is immoral, what may be done from what may not be done. HRM requires a careful balance the
rights and interests of management, workers, as well as the HRM professional with the larger society.
-Effective recruitment and selection are important because they contribute to organizational
productivity and worker growth.
-Effective human resource management, including recruitment and selection, must be carried out
within the context of an organizational system and external environment.
Chapter 2: Measurement, Reliability, and Validity:
Should be able to:
-Understand the basic components that make up a traditional personnel selection model;
-Know what a correlation coefficient is, along with a few other basic statistical concepts used in
personnel selection;
-Have a good understanding of the concepts of reliability and validity;
-Recognize the importance and necessity of establishing the reliability and validity of measurements
used in personnel selection;
-Identify common strategies that are used to provide evidence on the reliability and validity of
measurements used in personnel selection; and
-Appreciate the requirement for measurements used in personnel selection to evaluate applicants fairly
and in an unbiased fashion
-Recruitment and Selection Process:
-Many applicants for each job, employer needs to choose applicants who possess the necessary
Knowledge, Skills, Abilities, and Other attributes (KSAO's) to successfully perform the job.
-Every job employer who makes a hiring decision goes through some hiring process. That may be as
structured as applying to the Winnipeg General Police or as unstructured as a Mom and Pop's store.
-Table 2.1 on Page 29 is a good comparison between science-based approach vs. Practice-based.
-Selection programs must operate within the current legal context; standards set by the Meiorin
decision. Must choose best-qualified candidates within the agreed upon employment equity programs-
initiatives and policies in place to promote employment opportunities for members of designated
minority groups.
-Two elements to building a foundation:
-system must be based on solid empirical support. HR must be able to demonstrate reliability
and validity of their selection systems.
-Any selection system must operate within a legal context.
-Correlation and Regression: statistical procedures describe important information contained in the set
of applicant scores; measures of central tendency and variability are useful in summarizing large data
-Correlation Coefficient: measures the relationship between two variables. Useful in proving the
validity of selection criteria (cognitive ability) relationship with job performance.
-Coefficient of Determination: -this value represents the proportion of variability in one variable that is
associated with variability in another. ex. 31% of job performance can be attributed to cognitive ability.
-Simple and Multiple Regression: the relationship between one variable and another can be expressed
in terms of a straight line (simple regression) or multiple variables (multiple regression).
-RELIABILITY: degree to which observed scores are free from random measurement errors. It is an

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indication of the stability or dependability of a set of measurements over repeated applications of the
procedure- consistency. Factors that introduce error can be put into three broad categories:
-Temporary individual characteristics: nervousness, tired, fatigue all factors that throw off the
true score a candidate would get if in better condition
-Lack of standardization: change of conditions for applicants (ex. Different interview settings)
-Chance: luck of the draw on interview time, study concepts..
-Measurement: degree of variability that is caused by measurement error. Can test this by using two
different but parallel measurements of the characteristic or attribute and see if the yield the same result.
Test and re-test approaches can also be taken.
-VALIDITY: refers to the legitimacy or correctness of the inferences that are drawn from a set of
measurements or other specified procedures. Degree to which accumulated evidence and theory
support specific interpretations of test cores in the context of a test propped use.
-Validation Strategies:
-Construct and content validity provide evidence based on test content.
-Criterion-related validity provides evidence based on relationships to other variables.
-Factors affecting validity co-efficient:
-Range Restriction: measurements taken from a smaller subgroup are more homogeneous than a
larger group
-Measurement Error: reliability of measurement places an upper limit on validity
-Sampling Error: sample size may not be as representative as needed.
-Bias and Fairness:
-Bias refers to systematic errors in measurement or inferences made from measurements that are related
to different identifiable group membership characteristics such as age, sex or race. Form of bias is
differential prediction where the average performance score of a subgroup is higher or lower than the
score of the entire group.
-The concept of fairness in measurement to the value judgements people make about the decisions or
outcomes that are based on measurements. No single meaning so no statistical testing. Something that
is unbiased may be unfair as well.
-One goal of personnel selection is to use scientifically derived information to predict which job
applicants will do well in the job.
-The procedures used to select employees must meet acceptable professional standards.
Chapter 3: Legal Issues:
Should be able to:
-Understand the major legal issues affecting recruitment and selection;
-Know how relevant human rights and employment equity legislation and policies affect recruitment
and selection in your organization;
-Understand and be able to describe how legal concerns affect the practice of recruitment and selection;
-Know, and be capable of explaining, the key legal concepts that have had an impact on recruitment
and selection in this country; and
-Be able to apply the basic concepts and principles discussed in the chapter to the development of
recruitment and selection systems that meet legal requirements
-4 Legal sources affecting Canadian employment practices in R & S:
-Constitutional Law: Supreme law of Canada; it has a pervasive impact on employment practices and
all spheres of Canadian society. Precedent over all other legal means. Includes the Charter of Rights
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