IO psychologists stress on the measurement of the validity of an assessment process by using three strategies like Construct, Content, and Criterion, where the latter two strategies are commonplace. Criterion-related studies are done on tests for jobs in case of many incumbents and tests, while content valid tests are used to directly measure skills and abilities related to the job.
Though the concept of a fair test appears to be complex, the Uniform Guidelines have operationally defined it as such as the 4/5ths rule, which provides a guideline as to whether a selection procedure unfairly discriminates against racial minorities, women, or those ages 40 and older. If the passing rate for any of the groups is . 80 or greater than the passing rate of the highest scoring group (assumed to be whites, or males or those under age 40), then the procedure applied is considered as fair (Bobrow, 2003).
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There is a standard 2.01, Boundaries of Competence (American Psychological Association, 2002) that requires non-IO psychologists to either seek supervision or refer clients when asked to assess candidates for hiring and/or promotion (Bobrow, 2003). Conclusion The review amply highlights the significance of applying a systematic process in personnel selection in small businesses sector, where it should begin with a job analysis, before defining important job activities and worker characteristics. Alongside, the procedure also needs to be validated and framed by ethics.
Such a strategy is easy to design and also costs little, especially considering the future implications of personnel selection. Therefore, amid the financial crunch of post-downturn business environment, a systematic personnel selection could be the savior of the small business organizations.
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