Psychology Of Personnel Selection Research Paper

1. Comparison Of Person And Job

Occupational or job-related qualification, understood as the probability of success, basically means ‘who is suitable and what for?’ That is, the target groups or individuals are to be defined just as well as the target positions. The requirements of the tasks or positions are to be established, and the necessary characteristics of the job-holders have to be derived on that basis. For very specific requirements, diagnostic methods are available or will be developed, or adapted, in order to measure and to compare job-relevant traits or abilities. Besides performance criteria, other indicators of occupational success can be formulated as objectives of the diagnosis, namely job and work satisfaction, health and well-being, or the tenure in the organization. Consequently, in addition to task analysis, the potential for satisfaction of the job in question has to be determined and compared with the interests and needs of the individuals.

Aside from determining the present requirements, an attempt can be made to estimate what kinds of changes in the requirements are to be anticipated; furthermore, an undeterminable amount of change has to be expected. The required development potential of a person should correspond to the foreseeable changes and offer the prospect to be up to future developments of an uncertain nature. Predictions are difficult in this area; however, some characteristics turned out to be relevant to success in most occupational contexts. Based on these general findings, it is necessary to compare person and job on three different levels (Fig. 1).

Different methods of task and job analysis are available for the investigation of occupational requirements. For our context, the most important kinds of requirements—not always clearly separable—are formulated as trait requirements (e.g., abilities and interests), behavioral requirements (e.g., skills and habits), qualification requirements (e.g., knowledge and skills), or as outcome requirements (e.g., problem solving and quality standards). In most cases the assessment of requirements is conducted by observation or by means of interviews or questionnaires.

2. Job-Relevant Characteristics

The required characteristics of the job candidate are investigated, as far as feasible and appropriate, as they apply to the job-specific requirements. However, several characteristics also proved to be relevant predictors of occupational success. Preceding all is general intelligence, for which meta-analytical methods (Hunter and Schmidt 1990) provided evidence which showed that it is a valid predictor of achievement for practically all occupational fields (the effect of intelligence on work performance is mainly due to the ability to acquire job knowledge). As opposed to this, global personality traits such as extraversion and openness to experience have not shown to possess general validity. However, restricted variance in applicant samples may be responsible for this finding, adding to the problem that personality inventories usually lack job orientation. Among the global personality characteristics, the trait ‘conscientiousness’ seems to be of general relevance. In a meta-analysis using only European samples, Salgado (1997) found emotional stability (neuroticism) also to be a valid predictor for all jobs and criteria. While validity coefficients for these general traits turned out to be rather low, some narrower and less well-researched personality constructs showed higher validities at least for several occupational groups. Among these traits are: achievement motivation, self-confidence, and dominance. The highest predictive validity for a noncognitive trait has been found for ‘integrity’ (Ones et al. 1993), while its construct validity is still a controversial issue. Approaches to determine the interaction of several characteristics—especially those belonging to different diagnostic taxonomies—are only in the beginning. The application of structural equation modeling and related statistical methods should lead to substantial progress (Schmitt and Chan 1998).

3. The Trimodal Approach to Personnel Selection

The distinction of three general methodical approaches is helpful for the classification of diagnostic instruments: the trait approach, the simulation approach, and the biographical approach (Schuler 2001). Each one of these approaches pursues a partially independent validation logic and corresponds to specific methods of personnel assessment. With the trait or construct approach, characteristics are measured which are assumed to be relatively stable, e.g., conscientiousness and verbal intelligence. In order to assess these traits as homogeneous constructs, psychological tests are being used as typical instruments. In this case, construct validity is at the core of successful measurement. The objective of the simulation approach is the assessment of behavior similar to that required at the workplace; the appropriate validation strategy is the one which aims at representativeness or content validity. A typical form of measurement is the work sample. The third diagnostic principle is the biographical approach, although it cannot always be sharply distinguished from the other approaches. Typical assessment methods are biographical questions which can be presented in paper-and-pencil instruments (questionnaires), or in verbal form during an interview. Currently not in use, but a potentially fruitful method is the ideographical analysis of biographies (Fig. 2). For practical personnel selection, this means that in most cases multiple procedures are superior to cover complex requirements situations.

4. Instruments For Personnel Selection

First, the section discusses different types of single procedures, subsequently more complex procedures are presented (for a more detailed report, refer to Schmitt and Chan 1998, Schuler 2001).

4.1 Tests

Psychological tests are standardized routinely used methods for the measurement of individual behavioral characteristics, from which conclusions can be drawn pertaining to the individuals’ traits or their behavior in other situations.

In scientifically controlled aptitude measurement, tests are the most commonly used instruments. They are applied to practically all occupational fields and job-relevant abilities. The most important kinds of tests used in personnel selection are:

(a) Tests of general cognitive ability (intelligence);

(b) Tests of specific cognitive abilities;

(c) Tests of attention and concentration;

(d) Tests of the sensory and motor abilities;

(e) Other achievement tests;

(f) General personality tests;

(g) Specific personality tests;

(h) Tests of attitudes, motivation, and interests.

Numerous tests have been published and are available from the test publishers. However, large organizations (such as the Federal Labor Agency, industrial companies, the military) often employ methods specifically designed for their purposes. The number of applications of these methods depend on the relevant occupational group. Figure 3 (data from 1990) shows that the extensiveness with which large companies use tests differs substantially between European countries.

4.2 Work Sample Tests

Work sample tests, being the prototype of simulation oriented diagnostic tools, are standardized tasks which require assessees to carry out success-relevant occupational behavior. A high similarity of predictors and criteria is intended. The construction of work samples generally follows the same principles as that of psychological tests. A substantial difference is that it is largely done without ‘translating’ the occupational tasks into trait requirements. Rather than inferring a predisposition (trait) from a ‘sign’ (test behavior), conclusions are drawn from a sample of behavior for similar future behavior (Robertson and Kandola 1982). Examples are the preparation of a workpiece by a mechanic or a ‘test lecture’ by a teacher. A new class of work samples has been created by using video technology and virtual reality.

The use of computer-based procedures for psychological testing is rapidly growing (Booth 1998). The simulation of complex and dynamic problem solving tasks in scenarios requires the application of computers. These types of problems, originally developed in cognitive psychology, confront the applicant with a virtual environment where He/she has to control a system so that certain objectives will be reached. Hereby, the outcome variables (e.g., sales) as well as process variables (e.g., decisions), which are characteristic of a person’s working behavior, can be observed.

There is also a special type of work samples that can be described as a kind of hidden intelligence tests, e.g., job knowledge tests. As construct validation research showed, cognitive ability is the primary determinant of knowledge acquisition. An extensive meta-analysis by Dye et al. (1993) proved job knowledge tests to be among the most powerful predictors of occupational success, especially in cases of high similarity between jobs and tests, and high job complexity.

4.3 Biographical Information

The basic principle of the biographical approach in personnel selection is the direct prediction of future behavior from past behavior. Application documents are being evaluated primarily with respect to that sort of information, although other (e.g., formal) aspects also require attention. Essential biographical elements are the curriculum vitae and references that contain information about job experience and achievements, as well as school and university grades. Methods of analysis to gain a maximum of information out of application documents have not been developed yet.

Prototypical for the biographical approach is the biographical questionnaire. These instruments are often difficult to distinguish from personality tests. In comparison to personality items, biographical items are generally related to the past, and they typically concern behavior and verifiable events. Classical principle of questionnaire construction is the validation of each item or even of each response alternative within a multiple-choice item with respect to external criteria. This results in a task-specific and often also organization-specific item selection—and as a consequence in limited generalization. For this reason, the ‘blind empirical’ approach is often combined with a rational approach which is requirementand construct-related (Stokes et al. 1994). In most cases the most straightforward sources of performance-related biographical information are the level of education, school, and college grades. While the level of education is of high predictive value, school grades provide highly valid information for later educational performance, but the validity for predicting job performance is only moderate (Roth et al. 1996). Yet, in the 1980s and 1990s, predictive validity has even decreased for High School grades (Schuler 2001).

4.4 Interviews

Typical modes of employment interviews vary from a totally free conversation over partly structured to fully structured variants using standardized procedures, questions, and response evaluation. Ensuring interview validity can best be achieved by constructing the interview tool closely adapted to job requirements, standardizing questions, providing examples of response evaluation on behaviorally anchored rating scales, and combining several types of questions. The construction of interview questions can follow the same psychometric principles as test construction. Among the more elaborated types of interviews are the Situational Interview (Latham et al. 1980) and the Multimodal Interview (Schuler and Funke 1989). By means of the latter, it could be demonstrated that both construct and simulation-oriented principles of assessment can be realized in an interview, as well as the biographical principle. Moreover, a sequence of structured and unstructured interview components takes account of a candidate’s preferences for selection instruments that allow behavioral control, i.e., situations of low structure.

4.5 Multiple Procedures

The purpose of multimodal assessment procedures is to take into account a heterogeneous requirement constellation by combining different methods and diagnostic principles. Basically, all types of single procedures can be combined; however, meta-analytical calculations show that noncognitive predictors can provide substantial supplements only in a few cases, i.e., incremental validity, in addition to intelligence tests. The most important of these predictors are work samples, specific personality tests, and structured interviews. As multiple selection procedures for supervisors and trainees, assessment centers are often used (Thornton 1992). They usually consist of work samples such as group discussions, organizational tasks, presentations, and dyadic role-plays. Characteristic for an assessment center is that several applicants participate at the same time, and that the evaluation is carried out by several independent assessors. As far as the procedure succeeds to grasp the entirety of a person’s potential for future development, we speak of potential analysis. Where reliable criteria are available, single components of multimodal procedures can be weighted for the calculation of a total score (e.g., by multiple regression).

5. Evaluation Of Selection Instruments And Procedures

The evaluation of personnel selection procedures has to examine test theoretical criteria, especially objectivity, reliability, and validity. In addition to these, instruments have to be assessed according to organizational efficiency or advisory efficiency, to social validity as well as to further ethical and legal aspects.

5.1 Validity

Among the criteria of psychometric quality, validity is the most important, the others are necessary, but not sufficient conditions for validity. Among the variants of validity (or strategies of validation), predictive validity plays a crucial role, since the objective usually is the prediction of future occupational success. The following diagnostic procedures demonstrated good or sufficient validity (Salgado 1999, Schmidt and Hunter 1998): tests of general intelligence, work samples, job-related structured interviews, biographical questionnaires, some specific personality tests (integrity, conscientiousness, achievement motivation), and multimodal procedures (assessment center, potential analysis); tests of job knowledge and assessment of job performance are in a similar range. It must be noted that there are some moderating conditions (e.g., the validity of biographical questionnaires for young persons is low) and that validation leads to different coefficients for different measures of success—i.e., supervisory assessment, position level, income, assessment of potential. The aspect of content validity is important especially during the steps of instrument construction, that of construct validity in the examination of the psychological meaning of test scores.

5.2 Organizational Efficiency

Organizational efficiency is operationalized by aspects of practicability; these are, above all, the expenditure of the procedure, the required competence for its application, and its availability. Above all, economic utility is a core element of organizational efficiency. It depends on several parameters, especially validity, selection rate, and base rate as well as the variance in the performance criteria (that means, selection utility grows with the size of subsequent achievement differences). Supplemented by different economic indicators, the expected benefit can be calculated. Such calculations frequently lead to high utility estimates for the application of personnel selection instruments. Advisory efficiency may be understood as usefulness of diagnostic procedures to support individual occupational and organizational choice. Due to the relatively small general relationship between interests and abilities, such benefit is usually assumed. Advisory efficiency is important primarily in job counseling at labor agencies, but also in the context of organizational personnel development.

5.3 Applicants’ Reactions

The applicants’ acceptance of the selection process and their reactions to personnel selection methods is considered an independent quality criterion. Procedures which are better accepted are distinguished by information about job requirements as well as by transparency, feedback, and the possibility to control the situation. These requirements are better fulfilled in interactive procedures (i.e., interview) than in paper-and-pencil-tests or in biographical documentation (i.e., school grades).

5.4 Ethical And Legal Aspects

Ethical, professional, as well as legal aspects of personnel selection have received increasing attention. Examples for concrete ethical problems are: use of undue diagnostic methods, negligence of job requirements, application of intended distress during selection procedures, unjust invasion of privacy, lack of confidentiality of personal data, conflict of interest in relation to the employers and the clients. In this context, endeavors have been intensified to organize selection processes as fair and socially acceptable procedures (Schuler et al. 1993).

The appropriate legal basis—in Germany it is the general individual law as well as the labor law—are subject to substantial international differences. In Europe, an adaptation process takes place at present.

6. Concluding Comments

The adequacy of the application of personnel selection instruments in specific cases depends on a number of factors. If we disregard all required differentiations, the value of diagnostic information for the most relevant occupational groups can be judged as is presented in Fig. 4, which gives a summary of all is discussed above, that is, validity, efficiency, social validity (acceptability and fairness) as well as ethical and legal aspects. We have to get used to the idea that all these aspects will be important for the use of personnel selection methods in the future.

As a result of innovative instruments of personnel selection being vividly required by practitioners, the chance for the development and application of new approaches to assessment has increased. However, our insight into the incremental validity of additional methods or the value of combined procedures has not improved in the same way. Once science has moved towards that direction, we could approach a project that at this point of time still has the character of a vision—to draw diagnostic information not only from single, specifically constructed procedures, but from a variety of human characteristics. Performance results may be combined with self-appraisals and other assessments, evidence on abilities may be drawn from preferences and personal values, and biographical incidents, in connection with physiological data and even characteristics of the physique or other tabooed indicators, may have their place in highly valid predictor combinations.

However, one prerequisite for such a multi- indicator diagnosis are models that go beyond the available multivariate statistics, although current structural equation models may represent one step into that direction. One possible attempt is to apply the principles of fuzzy logic to validity estimation of such combined conclusions. On the other hand, the perspective of the employee or, as we call it, the social validity of these procedures must not be overlooked by concentrating on such ‘technical’ innovations (Schuler et al. 1993). To keep the further development of diagnostic techniques in balance with these requirements will be an important challenge for personnel selection research in the future.

Bibliography:

1. Booth J F 1998 Uses of PC technology in selection and assessment. International Journal of Selection and Assessment 6: 57–60
2. Dye D A, Reck M, McDaniel M A 1993 The validity of job knowledge measures. International Journal of Selection and Assessment 1: 153–7
3. Hunter J E, Schmidt F L 1990 Methods of Meta-analysis. Sage, Newbury Park, CA
4. Latham G P, Saari L M, Pursell E D, Campion M A 1980 The situational interview. Journal of Applied Psychology 65: 422–7
5. Ones D S, Viswesvaran C, Schmidt F L 1993 Comprehensive meta-analysis of integrity test validities: Findings and implications for personnel selection and theories of job performance [Monograph]. Journal of Applied Psychology 78: 679–704
6. Robertson I T, Kandola R S 1982 Work sample tests: Validity, adverse impact and applicant reaction. Journal of Occupational Psychology 55: 171–83
7. Roth P L, BeVier C A, Switzer II F S, Schippmann J S 1996 Meta-analyzing the relationship between grades and job performance. Journal of Applied Psychology 81: 548–56
8. Salgado J F 1997 The five factor model of personality and job performance in the European Community. Journal of Applied Psychology 82: 30–43
9. Salgado J F 1999 Personnel selection methods. In: Cooper C L, Robertson I (eds.) International Review of Industrial and Organizational Psychology. Wiley, London, UK pp. 1–54
10. Schmidt F L, Hunter J E 1998 The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings. Psychological Bulletin 2: 262–74
11. Schmitt N, Chan D 1998 Personnel Selection, A Theoretical Approach. Sage, Thousand Oaks, CA
12. Schuler H 2001 Lehrbuch der Personalpsychologie [Personnel Psychology]. Hogrefe, Goettingen Country
13. Schuler H, Farr J L, Smith M (eds.) 1993 Personnel Selection and Assessment: Individual and Organizational Perspectives. Erlbaum, Hillsdale, NJ
14. Schuler H, Funke U 1989 The interview as a multimodal procedure. In: Eder R W, Ferris G R (eds.) The Employment Interview—Theory, Research, and Practice. Sage, Newbury Park, CA pp. 183–192
15. Stokes G, Mumford M, Owens E (eds.) 1994 Biodata Handbook: Theory, Research and Use of Biographical Information in Selection and Performance Prediction. Consulting Psychologists Press, Palo Alto, CA
16. Thornton G C 1992 Assessment Centers in Human Resource Management. Addison-Wesley, Reading, MA