Chapter 5: Personnel Decisions
The social context for personnel decisions
I/O psychologists and members of the organization contribute the process of making personnel
decisions
Organizations operate within the social and cultural context in which they are embedded
Nepotism – an approach to personnel staffing whereby family members receive preferential treatment
o In the US, nepotism is viewed negatively because it results in unequal opportunity among job
applicants
o In non-Western cultures, nepotism is viewed positively
Logic: a family member is a known commodity who can be trusted to be loyal
Personnel decisions do not “stand apart” unrelated to the larger social system
The first documented personnel selection test in history is in the Bible – shibboleth (those who couldn’t
pronounce it correctly were executed)
Forces that affect personnel decisions and outcomes (some don’t even reference these)
o Organization and organizational needs
o Scientific theory
o Research and development
o Assessment of qualifications
o Assessment-based decisions
o Cultural values
End product of personnel selection process is to offer employment to some people, and deny it to
others
The way some organizations hire people in real life tends to be more intuitive, nonquantitative, not
based on validated, empirically derived factors
Some managers decline the use of scientific evidence in place of just a hunch – this will not improve
selection decisions
Cross-cultural differences in personnel selection: Preferences in ideal job candidates
o Universalist cultures – favor rational argument, follow what they see as universal codes of
practice and rules
US, Canada, Australia
o Particularist cultures – more emphasis on relationships, willing to bend the rules in making
selection decisions, rely more on interviews
France, Greece, Italy
o Japanese and Chinese = neutral, reserved approach
o South European / South American = more emotional
o There may be similarities in cross-cultural selection methods, but there can be strong cultural
differences in the desired performance of the candidate
Recruitment
Recruitment – process by which individuals are solicited to apply for jobs
The state of the economy will have a strong effect on how many people express interest in becoming
employees
Different recruiting approaches are used depending on the job level in question
Search firms – serve clientele at the higher job level – fee might be 50% of the person’s salary
“if recruiting strategies don’t help identify a sizeable and suitable pool of talent even the most accurate
selection process will be of little or no use
During high unemployment – organizations sift through candidates looking for the best candidate
During low unemployment – now the candidates sift through organizations, looking for their ideal
employer
More often, recruiting is a middling position – organizations and people try to figure out if they are a
perfect match – mating approach to meet the needs of both parties
Positive word of mouth channels was associated with perceptions of organizational attractiveness and
behavioral outcomes
Onsite visits – shows the candidates that the organization is serious about them – serves to affirm the
value each party holds for each other Success in getting candidates interested in joining an organization is not the same as actually getting
new employees to join the organization
Social validity – the quality of a selection process that makes it acceptable to job applicants
o The social validity of selection procedures was the strongest correlate with applicant’s favorable
reactions to the organization
French college students were more favorably disposed to graphology as a selection method
o US college students were more accepting of biographical info
Study: candidate reactions to a full-day multistage personnel selection procedure
o The rejected candidates viewed the assessment process as fair and reasonable to the extent
they felt the various assessments allowed them the “opportunity to perform” (show the
organization their skills)
Perceptions of fairness in personnel selection are enhanced when candidates have sufficient time and
resources to be assessed under conditions free of distraction
Explain why they were denied employment in a way that reduces negative feelings and damage to self
esteem
A model of personnel decisions
Sequence of factors associated with making personnel decisions:
Work and organizational analyses
Criteria and their measurement; Predictors and their measurement
Linkage between predictors and criteria: validity (regression analysis)
Design of recruitment strategies
Selection systems and factors affecting their use
Assessing the utility of selection systems
Set of principles for the validation / use of personnel selection procedures
o Specify scientific findings and accepted professional practices
o Focuses on the accuracy of the inferences that underlie employment decisions
Regression analysis
Regression analysis – statistical procedure used to predict one variable on the basis of another variable
It is used to predict criterion performance on the basis of a predictor score
Although a correlation coefficient is useful for showing the degree of relationship between two
variables, it is not useful for predicting one variable from a person’s status on another variable
o Regression analysis does permit us to predict a person’s status on one variable (criterion)
based on their status on another variable (predictor) – relationship is usually linear
Multiple predictors
o Combining two or more predictors may improve the predictability of the criterion
o If the two predictors are unrelated to each other, the predict different aspects of the criterion
o Multiple correlation – the combined relationship between two or more predictors and the
criterion
The degree of predictability (ranging from 0 – 1.00) in forecasting one variable on the
basis of two or more other variables
o It is rare for two predictors related to one criterion are unrelated to each other – meaning all of
the criterion variance accounted for by the second predictor is not new variance (part of it was
explained by the first predictor)
o It is generally advisable to seek predictors that are related to the criterion but unrelated to each
other (can explain more aspects of the criterion)
Multiple regression analysis
o Multiple regression analysis – statistical procedure used to predict one variable on the basis of
two or more other variables
o Usually enhances prediction of the criterion
o Regression equations with four or five predictors usually are as accurate as those with more
Validity genera
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