Week 4 Part B: Personnel Selection in Workplace Psychology

Course Overview

• PY3105 TR1 2025: TVS. Workplace Psychology: Personnel Selection

Textbook Information

• Muchinsky, P., & Howes, S. (2022). Psychology Applied to Work: An Introduction to Industrial and Organizational Psychology, 13th Edition
• Available in e-version, not at the bookshop, can order directly from publisher
• Earlier editions acceptable but may have different content and pagination

Learning Objectives

• Understand the concept of personnel selection
• Explain predictor cutoffs, selection ratios, and base rates
• Understand implications of incorrect predictor cutoffs and issues of false positives/negatives
• Explain banding, its advantages and disadvantages

Classification of Tests

• Test = systematic observation of behavior quantified with numerical scales
• Common in organizational and educational contexts (e.g., NAPLAN, Personality Tests)

Planning and Recruitment

• Planning: Anticipating human resource needs based on work analysis
• Consider factors: expansion vs. replacements, labor market conditions
• Recruitment: Act of attracting candidates through various methods
• Methods include: advertising, employee referrals, agencies, schools, walk-ins, web ads (e.g., Monster)

Predictors in Organizational Context

• Predictor: Tool used to predict job performance (criterion)
• Predictive Validity: Degree to which a predictor effectively forecasts the criterion
• Higher overlap between predictor and criterion leads to better predictions

Selection Battery Considerations

• Example: Selection Battery for middle management
• Generate job specifications, criteria, and predictors while considering cost
• Avoid redundancy in predictors to enhance content validity

Selection Decisions

• Must be based on valid tests; general validation approaches include:
• Validation Study: Predictive or Concurrent designs, and Validity Generalization
• Larger organizations often implement selection batteries for hiring

Selection Battery Example

• Components may include interviews, assessment centers, cognitive ability tests, etc.

Applicant Selection Methods

• Utilization of: application forms, interviews, references, cognitive, personality, and work sample tests

First Screening Process

• Structured applications help filter out unqualified candidates
• Responses based on essential KSAOs (Knowledge, Skills, Abilities, and Other characteristics)

Second Screening Process

• Conduct interviews and psychometric testing (e.g., personality, cognitive skills)

Typical Tests Used

• Wonderlic Personnel Test: 50-item intelligence test measuring verbal and mathematical ability
• Known for reliability and validity; low-cost, quick administration
• Acer Advanced Tests: Assess language abilities and numerical reasoning

Personnel Selection Decisions

• Influenced by predictor validity, cutoff scores, and selection ratios

Base Rate and Performance

• Base Rate: Proportion of successful employees if hiring were random
• High base rate can dilute the effectiveness of the predictor; ideally around 0.5 for a non-random significant impact

Decision Interpretations

• Criterion Cutoff: Value separating successful from unsuccessful candidates
• Outcomes: true positives, true negatives, false positives, false negatives
• Aim to minimize false outcomes while balancing predictor cutoffs

Validity Generalization

• Validity assumptions regarding test performance versus job performance across various contexts
• Larger sample sizes yield more reliable results

Placement vs. Classification

• Placement: Assigning to jobs based on single test score
• Classification: Assigning based on multiple test scores

Diversity Considerations

• Diversity Factors: Gender, race, age, education, etc. impact hiring decisions
• Legal Context: Fair Work regulations in Australia to regulate employment practices
• Aims to balance workforce diversity with productivity

Affirmative Action

• Goals: Correct inequities, compensate past wrongs, model diversity, promote inclusion

Summary of Selection Criteria

• A predictor must be validated, reliable, applicable, and cost-effective to be effective in personnel selection.