Deck 11: Decision Making

Question 1

A significance level of p < 0.05 means that there are fewer than 5 chance in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not.

Answer 1

True

Question 2

The selection ratio is the number of people hired divided by the number of applicants, and it is desirable that this ratio be high.

Answer 2

False

Question 3

There are no cases in which a predictor has high validity and high adverse impact.

Answer 3

False

Question 4

Practical significance is the sign of a correlation coefficient.

Question 5

Validity refers to the relationship between predictor and criterion scores.

Question 6

The base rate is the number of hires divided by the number of employees.

Question 7

In general, the greater the correlation of a given predictor with other predictors of a criterion, the more useful the predictor will be.

Question 8

It is desirable that the denominator of a selection ratio be small.

Question 9

A useful predictor is one where the sign of the relationship is consistent with the logic or theory behind the predictor.

Question 10

When deciding whether or not to use a new predictor, the validity coefficient, the base rate, and the selection ratio should be considered in combination, not independently.

Question 11

The usefulness of a predictor is determined by the value it adds to the prediction of job success above and beyond the forecasting powers of other available predictors.

Question 12

One of the key features of utility analysis is the use of a dollar-based metric for assessing the impact of improved selection systems.

Question 13

Although Kano analysis cannot quantify economic gains from a change in focus, it is useful for assessing which areas of the selection system should be improved for maximum impact on performance outcomes.

Question 14

Statistical significance is stated as a probability and indicates a given predictor's chances of yielding similar validity coefficients with different sets of applicants.

Question 15

All other things being equal, if a selection specialist must decide between two predictors, the one that causes the least adverse impact would be the best choice.

Question 16

The predictive analytics approach uses a regression-based approach to estimate how much potential changes in staffing procedures could influence performance-relevant outcomes.

Question 17

Predictive analysis is most suitable for cases in which relatively low amounts of prior data are available.

Question 18

Utility refers to the expected gains to be derived from using a predictor.

Question 19

Kano analysis is limited because it requires the assumption that improvements in any area of staffing practice will be equally important for financial outcomes.

Question 20

Utility analysis is hampered by the difficulty in estimating how much revenue is produced by a worker one standard deviation above average.

Question 21

One disadvantage of ranking is that it doesn't provide a clear suggestion of the order in which candidates should be offered jobs.

Question 22

The clinical prediction method of determining an applicant's score on a job assessment instrument relies on adding the individual predictor scores together to arrive at the applicant's total score.

Question 23

The minimum competency method involves setting the cut score on the basis of the minimum qualifications deemed necessary to perform a job.

Question 24

In ranking finalists are ordered from the most desirable to the least desirable based on the results of discretionary assessments.

Question 25

In top down hiring, all individuals who are above a minimum competency point are hired.

Question 26

Using high adverse impact procedures tends to reduce adverse impact in final selection, compared to procedures that put low adverse impact selection tools first and then follow with higher adverse impact predictors.

Question 27

When random selection is used to select the finalist to whom a job offer will be made, discretionary assessment methods should be used.

Question 28

A compensatory approach to selection decisions means that applicants must earn a passing score on each predictor before advancing in the selection process.

Question 29

There is little evidence that individuals who perceive themselves to be overqualified are less satisfied or have higher intentions to turnover.

Question 30

Ongoing hiring is most common in organizations with very high turnover rates.

Question 31

The law prohibits using different norms for test scores of minority and majority groups.

Question 32

In assessing cutoff scores, a "false positive" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Question 33

In establishing procedures for setting cutoff scores, organizations should stress the job-relatedness of the assessment procedure and de-emphasize validity.

Question 34

Applicants react positively when banding is associated with affirmative action.

Question 35

In assessing cutoff scores, a "false negative" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Question 36

Multiple regression will be more precise than unit weighting if there is a small number of predictors, low correlations between predictors, and a large sample.

Question 37

Banding is a procedure whereby applicants who score in different score ranges or bands are considered to have scored equivalently.

Question 38

The "unit weighting" method of determining the score of a job applicant on an assessment instrument considers the relative importance of each predictor.

Question 39

Differential weighting schemes attempt to find solutions that maximize validity and diversity by giving more weight to valid predictors that have less adverse impact.

Question 40

The multiple hurdles method of setting a passing score for a job predictor would be a cost efficient method for making decisions about hiring.

Question 41

Under which circumstances is "hiring success gain" likely to be optimal?

A) Low selection ratio, low base rate, high validity
B) High selection ratio, high base rate, high validity
C) High selection ratio, low base rate, high validity
D) High selection ratio, low base rate, low validity

Question 42

The ________ method of determining an applicant's score is based on the expert judgment of the manager.

A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Question 43

Organizational leaders are in a good position to develop policies and procedures that will fit with the organization's plans and goals.

Question 44

The law suggests that unless the organization is under a formal AAP, protected characteristics should not be considered in selection decision making.

Question 45

If you are evaluating the usefulness of a given predictor in predicting job success, and you are interested in the value the predictor adds to the prediction of job success, you want to know the predictor's ________.

A) validity coefficient
B) practical significance
C) sign
D) statistical significance

Question 46

If adverse impact occurs because of certain selection procedures, these procedures may be justified under UGESP through validity studies.

Question 47

Because HR is a closed system, it is best to avoid inference from organizational leaders in designing staffing procedures.

Question 48

Utility analysis formulas provide the HR specialist with an estimate of ________.

A) the economic gain derived from using a predictor versus random selection
B) the economic gain from using random selection
C) the economic gain of the standard deviation of job performance
D) the economic gain of the validity coefficient

Question 49

Validity refers to ________.

A) the number of individuals hired by a predictor
B) the number of individuals hired divided by the number of applicants
C) the relationship between predictor and criterion scores
D) the inverse of the adverse impact ratio

Question 50

HR professionals have access to data related to predictor-outcome relationships, and therefore can quantify which current selection systems are most effective in meeting operational goals.

Question 51

A significance level of p < 0.05 in a validity study means ________.

A) that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not
B) that there are 5 chances in 100 of concluding that there is not a relationship in the population of job applicants, when in fact, there is
C) that the practical significance of the observed relationship is very low
D) that there are fewer than 5 chances in 100 that a predictor has adverse impact

Question 52

The ________ approach means that selection decisions means that scores on one predictor can make up for low scores on another.

A) multiple hurdles
B) Markov process
C) compensatory model
D) none of the above

Question 53

Which of the following is the most difficult to estimate term in the economic gain formula?

A) Average tenure of employees.
B) Number of applicants.
C) Dollar value of job performance.
D) Cost per applicant.

Question 54

If an HR specialist is assessing the usefulness of predictors in forecasting job success, and it is noted that a given predictor has both high validity and high adverse impact, the HR specialist should conclude ________.

A) this can never happen and the method of calculating validity must be incorrect
B) this is a common circumstance and the predictor should be used
C) if the predictor is highly correlated with other predictors, this will compensate for adverse impact
D) legal problems could result and alternative predictors should be sought

Question 55

The procedure designed to evaluate how small improvements in a selection system can yield large gains is called ________.

A) Predictive analytics
B) Utility analysis
C) Vector autoregression
D) Kano analysis

Question 56

Taylor-Russell tables are an effective decision making tool in that they ________.

A) allow for calculating selection ratios
B) enable HR specialists to calculate utility ratios
C) allow simultaneous consideration of a predictor's base rate, selection ratio, and validity
D) help to increase validity coefficients to more acceptable levels

Question 57

The two options the UGESP recommends for minimizing adverse impact are use of within-group norming and banding.

Question 58

Which of the following best fits the definition of predictive analytics?

A) using anecdotes and focus groups to assess applicant reactions to selection procedures
B) using regression analysis to predict how much performance indicators will change if staffing policies are changed
C) benchmarking the qualitative outcomes of selective attention to gainsharing
D) incorporating lateral analysis of big data vectors alongside principal components

Question 59

Since line managers are not usually technical experts in staffing processes, their input comes to play only in regard to hiring decisions.

Question 60

When HR specialists state that a new predictor "adds value" to the prediction of job success, they mean that ________.

A) the predictor provides economic benefit to prediction
B) the predictor has a high validity coefficient
C) the predictor adds to the prediction of job success over and beyond the forecasting powers of current predictors
D) the predictor is highly correlated with other predictors, thus increasing efficiency

Question 61

If a cutoff scores is set based on the qualifications deemed necessary to perform a job, it is most likely the ________ method of determining cut scores.

A) top-down
B) criterion-related
C) minimum competency
D) banding

Question 62

If a cutoff score is lowered, the effect of this on hiring results is likely to be ________.

A) fewer false negatives only
B) both fewer false negatives and more true positives
C) fewer false negatives and fewer false positives
D) more false negatives and more false positives

Question 63

Co-workers are most likely to be involved in hiring decision making if they are organized in ________.

A) solo work
B) functional harmony
C) teams
D) none of the above

Question 64

When using ________, finalists are ordered from the most desirable to the least desirable based on results of discretionary assessments.

A) ranking
B) random selection
C) clinical prediction
D) grouping

Question 65

An applicant who is hired but does not perform successfully is a ________.

A) true positive
B) false positive
C) true negative
D) false negative

Question 66

When using ________, each finalist has an equal chance of being selected.

A) ranking
B) random selection
C) clinical prediction
D) grouping

Question 67

When using ________, finalists are banded together into rank-ordered categories.

A) ranking
B) random selection
C) clinical prediction
D) grouping

Question 68

If an organization wish to comply with the law and still increase the diversity of its workforce, it should ________.

A) de-emphasize selection based on KSAOs
B) use recruitment as a tool for attracting a more diverse and qualified applicant pool
C) use clinical and other subjective prediction methods
D) all of the above

Question 69

The ________ approach means that an applicant must earn a passing score on each predictor before advancing in the selection process.

A) multiple hurdles
B) Markov process
C) compensatory model
D) none of the above

Question 70

When applicants who score within a certain score range are considered to have scored equivalently ________.

A) top-down
B) criterion-related
C) minimum competency
D) banding

Question 71

In which of the following assessment procedures is the participation of line managers most needed?

A) initial assessment
B) substantive methods
C) discretionary methods
D) background investigations

Question 72

Uniform Guidelines on Employee Selection Procedures establish guidelines for record-keeping ________.

A) of applicants' sex
B) of applicants' race
C) for major job categories
D) all of the above

Question 73

In terms of who should participate in selection decision making (i.e., HR professionals vs.line managers), HR professionals would be least likely to ________.

A) make the hiring decision
B) establish selection procedures
C) ensure relevant laws and regulations are being followed
D) represent the interests of employees to management

Question 74

The ________ method of determining an applicant's score is based on assigning weights by statistical procedures and then adding predictor scores together.

A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Question 75

Which decision makers are best able to develop a philosophy of staffing systems that will link to the organization's strategy?

A) HR managers
B) organizational leaders
C) co-workers
D) line managers

Question 76

Which of the following statements is a useful guideline for setting cutoff scores?

A) Cutoff scores should be consistent with normal expectations of acceptable proficiency within the workforce.
B) The job relatedness of assessment procedures should not be correlated with validity.
C) A single "best" method of setting cutoff scores should be identified.
D) Cutoff scores should be set to maximize true positives.

Question 77

Research suggests which of the following about multi-stage selection procedures?

A) They seldom are effective in reducing costs of hiring
B) Few organizations find them worth employing
C) Using a variety of selection tools together can maintain high validity while maintaining comparatively lower adverse impact
D) When used effectively, adverse impact can be completely eliminated with multi-stage selection procedures

Question 78

An applicant who is not hired but who would have performed successfully if hired is a ________.

A) true positive
B) false positive
C) true negative
D) false negative