Individuals differences at work & personnel selection

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1 Individuals differences at work & personnel selection Dr Herbert Chiu 1

2 Learning objectives Identify how individuals differ at work Consider the implications of understanding individual differences for management Explain criteria for choosing selection methods Describe major selection methods and identify their advantages and disadvantages 2

3 Areas of differences Ability - carry out multiple processes in coordination to achieve a specified goal Intelligence - individual s capacity for abstract and critical thinking - understand complex ideas 3

4 Areas of differences Emotional Intelligence The ability to understand and manage one s own feelings and emotions and the feelings and emotions of others A good understanding of how to use emotions to promote effective functioning and well-being Demographic factors - age, gender, education, ethnicity, religion 4

5 Areas of differences Personality Refer to fundamental traits or characteristics that account for human functioning Eysenck et al (1975) "Personality is the relatively stable organisation of a person's motivational dispositions, arising from the interaction between biological drives and the social and physical environment. 5

6 Approaches to personality Myers-Briggs Type Indicator (MBTI) Personality and Stress Big Five Model 6

7 Myers-Briggs Type Indicator (MBTI) Introvert (I) Extravert (E) Sensing (S) intuiting (N) Thinking (T) Feeling (F) Judging (J) Perceiving (P) 7

8 Myers-Briggs Type Indicator Introvert (I) (MBTI) Extravert (E) preference of directing own energy I for the inner world; E for the outer world Sensing (S) intuiting (N) preference of processing information - S for facts and clarity; N for ideas and looking into unknown 8

9 Myers-Briggs Type Indicator (MBTI) Thinking (T) Feeling (F) preference of making decisions T for logic and analytic approach; F for values, beliefs, importance Judging (J) Perceiving (P) preference of organising life J for planned and stable; P for flexibility 9

10 16 combinations of MBTI types Example: ENFP - Extravert, Intuitive, Feeling and Perceiving ISTJ ISFJ INFJ INTJ ISTP ISFP INFP INTP ESTP ESFP ENFP ENTP ESTJ ESFJ ENFJ ENTJ 10

11 Application of MBTI Composition of problem solving and decision making groups - e.g. intuitive types need sensing types - e.g. feeling types need thinking types 11

12 Personality and Stress Study of coronary patients (Friedman & Roseman, 1974) Patients behaved similarly in many ways - Type A - more likely to suffer stress-related illness - Type B (opposite of type A) - less likely to suffer stress-related illnesses 12

13 TYPE A & B personalities Friedman & Rosenman (1974) Type A personality Competitive High need for achievement Aggressive Work fast Type B personality Allow time to enjoy leisure Not preoccupied with achievement Easy going Works at a steady pace Explosive Impatient Restless Constant feeling of time pressure Extremely alert Patient Not easily frustrated Seldom lack enough time Relaxed 13

14 Research on type A - Rapid career achievement and income - High achievement, autonomy, power, job commitment - Type A work faster but with more errors than Type B - Set high performance standards of themselves and others, but frequently fail to attain them - Work harder, suffer more stress, ignore minor illnesses, but when they become ill they suffer major illnesses - More likely to generate stress in others 14

15 The BIG FIVE Personality Model (Costa & McCrae, 1990) Five-Factor model (FFM) Five basic unrelated dimensions Measured on a continuum and most people are not categorised at the extremes 15

16 The BIG FIVE Personality Model (Costa & McCrae, 1990) Extraversion: experience of positive emotional states and feeling good about ourselves and the world around us Agreeableness: captures the distinction between individuals who get along well with other people and those who do not Conscientiousness: describes the extent to which an individual is careful, organised, scrupulous, and persevering 16

17 The BIG FIVE personality model (Costa & McCrae, 1990) Emotional stability/ Neuroticism: reflects people s tendency to experience negative emotional states, feel distressed, and generally view themselves and the world around them negatively Openness to experience: captures the extent to which an individual is open to new experiences, original and open-minded 17

18 The BIG FIVE Personality Model Applied to the Work Context Openness to experience Conscientiousness Extraversion Agreeableness Neuroticism Explorer Creative, open-minded, intellectual Focused Dutiful, achievement-oriented, self-disciplined Extravert Gregarious, warm, positive Adapter Straightforward, altruistic, compliant,sympathetic Reactive Anxious, depressed, selfconscious Preserver Unimaginative, disinterested, narrow-minded Flexible Frivolous, irresponsible, disorganised Introvert Quiet, reserved, shy Challenger Quarrelsome, oppositional Resilient Calm, contended, 18 selfassured

19 Research on the BIG FIVE Reliable, robust and representative measure High degree of consensus that the BIG five is an adequate way of describing personality Existence of five factors across different cultures with different languages Conscientiousness related to job performance in different occupational groups Extraversion was a good predictor of performance in managerial and sales jobs Openness to experience related to divergent thinking and training effectiveness (engaging and learning ) 19

20 Personality testing at work Advantages Tests provide numeric information Recorded data allow for follow-up on personal development over time and determine whether tests are predictive of later success Tests are fair - eliminate favouritism Tests are scientific and empirically based on theoretical foundations - reliable, valid, and able to distinguish between people 20

21 Personality testing at work Disadvantages Tests can be faked to present oneself in good light Some people do not have sufficient selfinsight to report their own feelings and behaviour Temporary factors such as test anxiety may compromise reliability leading to different answers on different occasions 21

22 Personality testing at work Disadvantages (cont) People have to be sufficiently literate or articulate to do these tests. Interpretations of the tests takes skill, insight and experience People could buy copies and practise, so that they know the correct answer or most desirable answer 22

23 Organisational Implications Individual differences may explain: - variations in performance - reactions to change & interventions - learning differences - variations in job satisfaction and motivation - teamwork effectiveness - creative potential - leadership style - Personnel selection decisions 23

24 Stages of Personnel Selection Job analysis Recruitment Attract candidates Validation of selection Choosing selection methods Using selection methods Making selection offer 24

25 Job analysis Designed to produce systematic information about jobs, including the nature of the work performed, the equipment used, the working conditions, and the position of the job within the organisation (Arnold, 2005). Job description: outline of tasks and responsibilities Person specification: skills and characteristics required of the job holder 25

26 Recruitment Process of attracting a pool of 'qualified' candidates to apply for a vacant position 'Qualified' - fit the bill Publicise job Sifting/Short-listing candidates who fit the profile Sources: Internal and external 26

27 Selection Selection is the process in which specific assessment instruments are used to choose from a short list of applicants a suitable candidate(s) to fill a post 27

28 "Blame it on the boogie" Is it appropriate? 28

29 Importance of getting it right PersonnelToday.com (March 2007) Study by Capital Consulting found: - 1 in 4 jobseekers felt they had been treated badly when they applied for a job - more than half of jobseekers stop buying goods or services from companies that treat them poorly - more than one third were asked irrelevant or stupid questions 29

30 There is more to recruitment Recruitment is not just about collecting applications and assessment Marketing the organisation and making it attractive 30

31 Criteria for choosing selection methods Reliability: the instruments measure consistently under varying conditions parallel reliability: consistency with other equivalent tests Validity: the instrument measures what it claims to measure criterion-related validity: prediction of future performance 31

32 Criteria for choosing selection methods Ability to distinguish between applicants Legality & fairness - must not discriminate against specific groups Cost Candidates reactions 32

33 Selection methods Application forms, CVs References - third party assessment Work-sample tests - perform tasks similar to those performed on the job Graphology - hand writing analysis 33

34 Selection methods Biographical Information (Biodata) Assumption: Self-report descriptions of past experiences or life histories can be used to predict work behaviour and potential for success Evaluation by supervisor / peers Assumption: If properly done, such evaluations reflect person X environment factors that influence workplace performance. 34

35 Selection methods (cont) Interviews Psychometric tests Assessment centres 35

36 Interviews 36

37 Interviews Procedure designed to predict future job performance on the basis of applicants oral responses to oral enquiries (McDaniel et al., 1994) - 97% of jobs (Keenan, 1995) - Global impression of applicants - Describe job - Give positive impression of organisation 37

38 Interviews - Or - Unstructured vs. structured interviews 38

39 Unstructured interviews Open ended questions Getting a feel of the person and the organisation Questions are not necessarily all job related - Why do you want to join our company? - What is your career ambition? Selection interviews are frequently conducted in an unstructured way (Van der Zee et al., 2002) 39

40 Pros and cons of unstructured interviews Pros: - flexible and offers opportunity to exchange information Cons: - casual, often short, random, - more scope for bias - halo effect - similar-to-me effect - personal liking effect - interpretation problems 40

41 Structured interviews Involve a series of job-related questions with pre-determined answers Questions based on job analysis - Tell me about a time when you worked successfully as a member of a team. Questions are standardised (consistent) across interviewers and interviewees Interviewers use consistent set of criteria to evaluate interviewee responses 41

42 Pros and cons of structured interviews Pros - standardised - reduce irrelevant information and bias Cons - can be too constraining - verbal reasoning test in disguise 42

43 Psychometrics A standardised measure of behaviour which can be described by a numerical scale or category (Cronbach, 1984) Enable us to quantify psychological characteristics (e.g. cognitive ability) Two categories: cognitive ability tests and personality tests 43

44 Psychometrics Cognitive ability tests (right and wrong answers) - verbal ability - spatial ability - numerical ability require training (admin, scoring, interpreting) 44

45 Psychometrics Personality tests - 16 PF (Personality Factors) - OPQ (Occupational Personality Questionnaire) - NEO (Big Five personality dimensions) 45

46 Pros and cons of Psychometrics Pros - cost-benefits in the long run - fair and objective - quick and easy to score - can be administered online - (cog ability) good predictor of job performance Cons - initial training expensive and time consuming - feedback essential but can be time consuming - applicants uneasy about taking tests - don't measure everything - (personality) distortion of responses 46

47 Assessment Centres Standardised evaluation of a candidate's behaviour based on multiple inputs from different methods - un/structured interviews - psychometric tests - group tasks/ discussions - work related presentations - simulations of real work exercises (role playing and in-tray exercises) Powerful approach for predicting future performance Duration ½ day to a week. 47

48 Assessment Centres Candidates are observed carrying out tasks Assessment based on several clearly defined criteria - problem-solving, influencing others (e.g. leadership) - organisation and planning, communication, drive - consideration / awareness of others, teamworking Criteria can be assessed from at least two angles Multiple trained assessors Decisions based on consensus or aggregate scores 48

49 Pros and cons of Assessment Centres Pros - high probability of selecting good applicants - data comprehensive and comparable - assess several candidates at once Cons - expensive - require training 49

50 Predictive validity vs. popularity of selection methods Perfect prediction 1.0 Popularity % Assessment centres 0.68 Interviews 97% Work samples 0.54 References 96% Ability tests 0.54 Application forms 93% Structured interviews 0.44 Ability tests 91% Personality tests 0.38 Personality tests 80% Unstructured interviews 0.33 Assessment centres 59% References 0.13 Graphology 2.6% Graphology 0.0 Source: Chmiel, N. (2006). Introduction to work and organisational psychology. Oxford: Blackwell 50

51 Summary Individuals in organisations differ in many ways and differences can explain work place behaviour Effective management requires an understanding of individual differences Criteria for choosing selection methods should be utilised Selection methods have their advantages and disadvantages Some are better predictors of job performance than others (have greater predictive validity) 51

52 References Available from HK CityU library Book Millward,L. (2005). Understanding occupational and organizational psychology. London: Sage. E-journal Robertson, I.T. and Smith, M. (2001). Personnel Selection. Journal of Occupational and Organizational Psychology; Nov 2001; 74,

53 Its been a pleasure Thank you & Best wishes 53

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