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Mark Cook

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Beschreibung

This is a fully updated edition of Personnel Selection, a seminal text on the psychometric approach to personnel selection by a noted expert in the field.

  • Focuses on cutting-edge topics including the influence of social networking sites, adverse impact, age differences and stereotypes, distribution of work performance, and the problems of selecting new employees using research based on incumbent employees
  • Questions established beliefs in the field, especially issues that have been characterized as "not a problem," such as differential validity, over-reliance on self-report, and "faking good"
  • Contains expanded discussion of research and practice in the US and internationally, while maintaining the definitive coverage of UK and European selection approaches
  • Provides comprehensive yet accessible information for professionals and students, as well as helpful pedagogical tools (technical and statistical boxes, simplified figures and tables, research agenda boxes, key point summaries, and key references)

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Table of Contents

Cover

Title Page

Preface to the sixth edition

Preface to the first edition

CHAPTER 1: Old and new selection methods

WHY SELECTION MATTERS

RECRUITMENT

APPLICATION SIFTING

IMPROVING APPLICATION SIFTING

OVERVIEW OF SELECTION METHODS

WHAT IS ASSESSED IN PERSONNEL SELECTION?

NATURE OF THE INFORMATION COLLECTED

WORK PERFORMANCE

FAIR EMPLOYMENT LAW

CURRENT SELECTION PRACTICE

REASONS FOR CHOICE OF SELECTION METHOD

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 2: Validity of selection methods

RELIABILITY

VALIDITY

CRITERION VALIDITY

CONTENT VALIDITY

CONSTRUCT VALIDITY

CONVERGENT/DIVERGENT VALIDITY

CROSS-VALIDATION

INCREMENTAL VALIDITY

DIFFERENTIAL VALIDITY

MARGINAL TYPES OF VALIDITY

META-ANALYSIS

PROBLEMS WITH META-ANALYSIS

VALIDITY GENERALIZATION ANALYSIS

CRITICISMS OF VALIDITY GENERALIZATION

LATEST DEVELOPMENT IN VGA

KEY POINTS

KEY REFERENCES

CHAPTER 3: Job description, work analysis and competences

JOB DESCRIPTION AND PERSON SPECIFICATION

WORK ANALYSIS METHODS

SELECTED WORK ANALYSIS TECHNIQUES – AN OVERVIEW

WORK ANALYSIS AND PERSONALITY

RELIABILITY AND VALIDITY OF WORK ANALYSIS

BIAS IN WORK ANALYSIS

USES OF WORK ANALYSIS

USING WORK ANALYSIS TO SELECT WORKERS

SYNTHETIC VALIDATION

THE FUTURE OF WORK ANALYSIS

COMPETENCES/COMPETENCY MODELLING

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 4: The interview

RELIABILITY AND VALIDITY

REASONS FOR POOR VALIDITY

IMPROVING THE INTERVIEW

STRUCTURED INTERVIEWS

CONSTRUCT VALIDITY OF THE INTERVIEW

TRUTHFULNESS OF INTERVIEW INFORMATION

HOW THE INTERVIEWER REACHES A DECISION

BIAS IN THE INTERVIEW

LAW AND FAIRNESS

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 5: References and ratings

REFERENCES

VALIDITY

IMPROVING THE REFERENCE

UNSTRUCTURED REFERENCES

LAW AND FAIRNESS

RATINGS

PEER OR CO-WORKER ASSESSMENTS

VALIDITY OF PEER RATINGS

KEY POINTS

KEY REFERENCES

CHAPTER 6: Tests of mental ability

OVERVIEW OF MENTAL ABILITY TESTS

INTERPRETING TEST SCORES

THE VALIDITY OF MENTAL ABILITY TESTS

ORGANIZATIONAL PERFORMANCE

g

OR SPECIFIC COGNITIVE ABILITIES?

MENTAL ABILITY AND THE SUCCESS OF TEAMS

WHY MENTAL ABILITY TESTS PREDICT PRODUCTIVITY

LAW, FAIRNESS, AND MINORITIES

DEALING WITH ADVERSE IMPACT IN MENTAL ABILITY SCORES

OTHER WAYS OF ASSESSING MENTAL ABILTY

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 7: Assessing personality by questionnaire

PERSONALITY QUESTIONNAIRES

USING PQs IN SELECTION

QUESTION 1: THE RIGHT PERSONALITY?

QUESTION 2: WILL HE/SHE DO THE JOB WELL?

QUESTION 3: HAS HE/SHE GOT A GOOD ATTITUDE TO WORK? ORGANIZATIONAL CITIZENSHIP

QUESTION 4: WILL HE/SHE BEHAVE BADLY AT WORK?

COUNTERPRODUCTIVE WORK BEHAVIOUR

THE SAGA OF HONESTY TESTS

QUESTION 5: WILL THE TEAM WORK WELL?

COMPLEXITIES OF PQ VALIDITY

IMPROVING PQ VALIDITY

THE PROBLEM OF FAKING

DEALING WITH FAKING

PQs, LAW AND FAIRNESS

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 8: Alternative ways of assessing personality

SELF-REPORT

PROJECTIVE TESTS

OTHERS’ REPORTS

DEMONSTRATION EVIDENCE

RECORDED EVIDENCE

INVOLUNTARY EVIDENCE

KEY POINTS

KEY REFERENCES

CHAPTER 9: Biodata and weighted application blanks

WEIGHTED APPLICATION BLANKS

BIODATA

CONSTRUCTING BIOGRAPHICAL MEASURES

VALIDITY

FAKABILITY

BIOGRAPHICAL MEASURES, FAIRNESS AND THE LAW

KEY POINTS

KEY REFERENCES

CHAPTER 10: Assessment centres

THE PRESENT SHAPE OF ACs

RELIABILITY OF ACs

VALIDITY OF ACs

META-ANALYSES

RESERVATIONS ABOUT AC VALIDITY

THE DIMENSION × EXERCISE PROBLEM

LINE OF RESEARCH 1: TRYING TO FIND DIMENSIONS

LINE OF RESEARCH 2: IMPROVING THE ANALYSIS

LINE OF RESEARCH 3: IDENTIFYING DEFICIENCIES IN AC PRACTICE

ARGUMENT 1: ‘NEVER MEANT TO BE’

ARGUMENT 2: THE EXERCISE EFFECT IS NOT RATER ERROR

ARGUMENT 3: ACs ARE REALLY SETS OF KEY TASKS, OR WORK SAMPLES

ARGUMENT 4: THE D×E PROBLEM IS NOT SPECIFIC TO ACs

CONSTRUCT VALIDITY

FAIRNESS AND THE ASSESSMENT CENTRE

KEY POINTS

KEY REFERENCES

CHAPTER 11: Emotional intelligence and other methods

EMOTIONAL INTELLIGENCE

VALIDITY OF EI MEASURES

SITUATIONAL JUDGEMENT TESTS

EDUCATION

WORK SAMPLE TESTS

SELF-ASSESSMENTS

PHYSICAL TESTS

DRUG USE TESTING

SOCIAL NETWORKING WEBSITES

KEY POINTS

KEY REFERENCES

CHAPTER 12: Criteria of work performance

SUPERVISOR RATING

OBJECTIVE CRITERIA

OTHER ASPECTS OF WORK PERFORMANCE

NEW CRITERIA

STRUCTURE OF WORK PERFORMANCE

BIAS AND ASSESSMENT OF WORK PERFORMANCE

INGRATIATION AND REPUTATION

DYNAMIC CRITERIA

CRITERIA, FAIRNESS AND THE LAW

PREDICTOR OR CRITERION?

KEY POINTS

KEY REFERENCES

CHAPTER 13: Minorities, fairness and the law

BRITISH LAW

EUROPEAN UNION LAW

OVERVIEW

ADVERSE IMPACT

QUOTA HIRING

JOB-RELATEDNESS

PROVING SELECTION IS JOB-RELATED

UK PRACTICE

DISABILITY

DIFFERENTIAL VALIDITY AND TEST FAIRNESS

THE SHAPE OF THINGS TO COME

CONCLUSIONS

KEY POINTS

KEY REFERENCES

USEFUL WEBSITES

CHAPTER 14: The value of good employees

HOW MUCH DOES WORKER PRODUCTIVITY VARY?

THE ‘STAR’ HYPOTHESIS

HOW MUCH IS A PRODUCTIVE WORKER WORTH?

CALCULATING THE RETURN ON SELECTION

PROVING SELECTION REALLY ADDS VALUE

THE APPLICANT’S PERSPECTIVE

FIT

KEY POINTS

KEY REFERENCES

CHAPTER 15: Conclusions

HOW TO SELECT

THE FUTURE OF SELECTION

References

Index

End User License Agreement

List of Tables

Chapter 01

Table 1.1 Traditional and new(er) selection assessment methods.

Table 1.2 Seven main aspects of applicants assessed in selection.

Table 1.3 Five categories of qualitatively different information, obtained by selection tests.

Table 1.4 Three surveys of UK selection, by CIPD (2006), IRS (Murphy, 2006) and Zibarras & Woods (2010).

Table 1.5 Summary of surveys of selection test use in Europe (Dany & Torchy, 1994; Schuler

et al

., 2007; König

et al

., 2010).

Chapter 02

Table 2.1 Core and marginal types of validity in selection research.

Table 2.2 (Fictitious) correlations between school subject marks.

Table 2.3 Ghiselli’s (1973) meta-analysis of ability test validity.

Table 2.4 Summary of four meta-analyses of the correlation between interview and mental ability.

Table 2.5 Validity generalization analysis of the data of Figure 2.4, based on data given by Schmidt & Hunter (1977).

Table 2.6 VGA of Ghiselli’s (1973) data on correlation between GMA and work performance, for five levels of job complexity, using ‘conventional’ VGA, and VGA correcting for indirect range restriction.

Chapter 03

Table 3.1 Position Analysis Questionnaire's (PAQ) six main divisions, and illustrative job elements.

Table 3.2 Work analysis by Position Analysis Questionnaire, showing choice of tests for plastic injection-moulding setters

Table 3.3 Illustration of synthetic validation in a local authority (city) workforce of 1,500.

Table 3.4 A personality-based work competency model proposed by Consiglio

et al.

(2013).

Chapter 04

Table 4.1 Summary of three meta-analyses of interview validity, by Wiesner & Cronshaw (1988), Huffcutt & Arthur (1994) and McDaniel

et al.

(1994).

Table 4.2 Summary of three meta-analyses of structured interview validity by Wiesner & Cronshaw (1988), Huffcutt & Arthur (1994) and McDaniel

et al.

(1994).

Table 4.3 Meta-analysis of construct validity of unstructured and structured interviews.

Table 4.4 Some impression management (IM) tactics used in interviews, with examples.

Chapter 05

Table 5.1 Survey of 1,331 US HR professionals about information sought in reference requests.

Table 5.2 Two early meta-analyses of reference check validity by Hunter & Hunter (1984) and Reilly & Chao (1982).

Table 5.3 Examples of words relating to five factors in letters of reference.

Table 5.4 Meta-analysis of peer rating and work performance.

Table 5.5 Summary of Norton's (1992) meta-analysis of peer rating and work performance.

Chapter 06

Table 6.1 Six varied items typical of mental ability tests.

Table 6.2 Correlation between general mental ability and work performance, for nine general types of work.

Table 6.3 Summary of 14 meta-analyses of general mental ability and work performance, for 12 types of work.

Table 6.4 Average scores of accountants and lumberjacks conscripted into US Army during the Second World War, and 10th and 90th percentiles.

Chapter 07

Table 7.1 A selection of PQ items and formats.

Table 7.2 The big five personality factors.

Table 7.3 Meta-meta-analysis of the big five and job performance.

Table 7.4 Personality and specialized work performance.

Table 7.5 Meta-meta-analysis of the big five and three measures of work performance.

Table 7.6 Meta-analyses of FFM and ‘attitude’ aspects of work performance.

Table 7.7 Summary of meta-analyses of correlations between FFM PQs and counterproductive work behaviours.

Table 7.8 Some questions of the type found in honesty tests.

Table 7.9 Meta-analysis of links between team personality and team performance.

Chapter 08

Table 8.1 Meta-analysis of projective and PQ measures of entrepreneurial performance.

Table 8.2 Summary of two meta-analyses of others’ reports of personality and work performance.

Table 8.3 Four sample items from personality tests.

Chapter 09

Table 9.1 Some typical biodata items.

Table 9.2 A sample WAB item, and its scoring, from Mitchell & Klimoski (1982).

Table 9.3 Summary of validity of biodata for nine work-related outcomes.

Table 9.4 Summary of validity of biodata for six areas of work.

Chapter 10

Table 10.1 Results of the AT&T Management Progress Study (Bray & Grant, 1966).

Table 10.2 Summary of three analyses of assessment centre validity.

Table 10.3 Convergent validity – assessing the same dimension in different exercises – for exercises of high and low relevance to that dimension.

Table 10.4 Summary of three meta-analyses of AC construct validity, correlating test with AC rating.

Chapter 11

Table 11.1 Some (fictitious) items for assessing emotional intelligence.

Table 11.2 A fictitious situational judgement test question.

Table 11.3 Meta-analysis of criterion and construct validity of SJTs.

Chapter 12

Table 12.1 Some examples of counterproductive behaviour, sorted into 11 classes, with number of CWBs in each class.

Table 12.2 Estimated correlation between four individual types of CPB, and all other types of CPB.

Table 12.3 Viswesvaran

et al

.’s (2005) 10 dimensions of effective work performance, with examples for an academic psychologist.

Table 12.4 Meta-analysis of absence and four other work-performance measures.

Table 12.5 Meta-analytic estimates of true correlations between five aspects of work performance.

Table 12.6 Four meta-analyses of differences in white and African Americans’ work performance, assessed objectively and subjectively.

Chapter 13

Table 13.1 Key events in the development of fair employment legislation in Britain, USA, and European Union.

Table 13.2 Actual composition of the British House of Commons following the 2015 election, and expected composition, based on the assumption that MPs are selected regardless of gender and ethnicity.

Table 13.3 White and minority British applicants for graduate recruitment schemes (Scott, 1997).

Chapter 14

Table 14.1 Correlation between procedural and distributive justice, and five outcomes.

Table 14.2 Relationship of person–organization fit to six outcomes.

Chapter 15

Table 15.1 Summary of the validity of different selection tests for work performance.

Table 15.2 Summary of 12 selection tests by five criteria.

List of Illustrations

Chapter 01

Figure 1.1 Successive stages in selecting academic staff in a British university.

Chapter 02

Figure 2.1 Height plotted against weight, showing a positive correlation of 0.75.

Figure 2.2 Three types of correlation in an assessment centre with three dimensions (1 to 3) rated in each of two exercises (A and B).

Figure 2.3 Schematic representation of the relationship between two predictors, e.g. mental ability test and interview, and work performance, where (a) the predictors are not highly correlated and (b) they are highly correlated.

Figure 2.4 Four distributions of validity coefficients, for four combinations of test and criterion (Ghiselli, 1966b).

Figure 2.5 Three funnel plots, of sample size and correlation. The Xs show the actual distribution of correlations in the meta-analysis. In Figure 2.5c the Ms show the presumed missing values, according to trim and fill analysis.

Figure 2.6 Fictitious data illustrating restriction of range, in data on the correlation between fitness and running speed.

Figure 2.7 Distribution of validity coefficients for 63 sub-samples, each of 68, drawn randomly from a larger sample of 1455 US postal workers.

Figure 2.8 Indirect restriction of range. Observable variables are in

italic

. True variables are in

bold

. The lines show paths between the variables.

Chapter 04

Figure 4.1 Validity of situational and behaviour description interviews for jobs of high, medium and low complexity.

Chapter 05

Figure 5.1 Extract from a competence-based reference request.

Figure 5.2 Schematic representation of the study by Baxter

et al.

(1981) of letters of reference.

Figure 5.3 A Brunswik lens model of the unstructured reference letter.

Figure 5.4 Rating formats. (a) graphic rating scales; (b) (invented) example of behaviourally anchored rating scale (BARS), for rating occupational psychologists.

Chapter 06

Figure 6.1 Distribution of mental ability scores, showing mean, standard deviations, percentiles, and IQs.

Figure 6.2 Corrected validity of GATB General + Verbal + Numerical composite with work performance, for five levels of job complexity.

Figure 6.3 Hierarchy of general mental ability, and specific cognitive abilities.

Figure 6.4 Linear vs. threshold models of the relationship between mental ability and work performance.

Figure 6.5 Schematic path diagram showing the paths from mental ability to work performance.

Chapter 07

Figure 7.1 Quadrant model of extraversion and neuroticism.

Figure 7.2 (Partial) hierarchical model of personality, at three levels, of two factors, five factors, and 30 facets. Only the neuroticism facets are listed.

Figure 7.3 Effect of directed faking, and applicant status on PQ measures of the big five. Baseline represents averages for unfaked big five, or present employees.

Chapter 08

Figure 8.1 A picture similar to those used in the Thematic Apperception Test.

Figure 8.2 An ink blot similar to those used in Rorschach test.

Figure 8.3 Links between six generic assessment centre exercises, and FFM, according to experts.

indicates experts rated that exercise likely to reflect that personality factor.

Figure 8.4 A letter attributed to Jack the Ripper.

Chapter 09

Figure 9.1 Results from the first published weighted application blank (WAB).

Figure 9.2 Predictive validity of the Career Profile System.

Figure 9.3 Schematic representation of the relationship between AIB score and success in selling insurance.

Figure 9.4 Results obtained with the Aptitude Index Battery (AIB) between 1951 and 1954.

Chapter 10

Figure 10.1 The dimension × exercise matrix underlying every assessment centre. XXX denotes influence is assessed by exercise A.

Figure 10.2 Links between seven generic AC dimensions, and the five-factor model of personality, according to experts.

Chapter 11

Figure 11.1 A sample item from an in-tray test.

Chapter 12

Figure 12.1 Schematic representation of true work performance, and actual criterion.

Figure 12.2 Possible hierarchical structure of work performance, suggested by Crites (1969).

Figure 12.3 Average ratings by white and African American supervisors, of white and African American workers.

Chapter 13

Figure 13.1 Stages in deciding whether a selection test is legally fair.

Figure 13.2 Two types of unfair test, showing (a) slope difference, and (b) intercept difference.

Figure 13.3 A fair test, in which test scores predict productivity equally accurately for minority and majority applicants.

Chapter 14

Figure 14.1 Distribution of productivity for 199 hosiery loopers (Tiffin, 1943).

Figure 14.2 The distribution of employee productivity, showing the percentile points used in Rational Estimate technique to measure it.

Figure 14.3 Favourability ratings of nine selection methods, across ten surveys.

Guide

Cover

Table of Contents

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Personnel Selection

Adding Value Through People – A Changing Picture

SIXTH EDITION

 

Mark Cook

 

 

 

 

 

 

 

This edition first published 2016© 2016 John Wiley & Sons, Ltd.

Edition history: John Wiley & Sons, Ltd. (1e, 1988; 2e, 1993; 3e, 1998; 4e, 2004; 5e, 2009)

Registered OfficeJohn Wiley & Sons, Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial Offices350 Main Street, Malden, MA 02148-5020, USA9600 Garsington Road, Oxford, OX4 2DQ, UKThe Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

For details of our global editorial offices, for customer services, and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell.

The right of Mark Cook to be identified as the author of this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

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Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

Library of Congress Cataloging-in-Publication Data

Names: Cook, Mark, 1942– author.Title: Personnel selection : adding value through people – a changing picture / Mark Cook.Description: Sixth edition. | Chichester, West Sussex, UK : John Wiley & Sons, 2016. | Includes bibliographical references and index.Identifiers: LCCN 2015039086 (print) | LCCN 2016000497 (ebook) | ISBN 9781118973592 (cloth) | ISBN 9781118973585 (pbk.) | ISBN 9781118973561 (ePub) | ISBN 9781118973578 (Adobe PDF)Subjects: LCSH: Employee selection.Classification: LCC HF5549.5.S38 C66 2016 (print) | LCC HF5549.5.S38 (ebook) | DDC 658.3/112–dc23LC record available at http://lccn.loc.gov/2015039086

A catalogue record for this book is available from the British Library.

Preface to the sixth edition

Every chapter of this sixth edition has been revised to incorporate new research and new ideas, so that amount of change in each chapter gives an indication of much new research has been reported in each area. The chapters on personality and assessment centres have needed the most revision. In order to keep the book within a manageable and affordable length a lot of older material has had to be removed, but I have tried to keep some historically important material. Chapter 11 covers a new topic: the contribution of social networking sites to selection. Two chapters have needed much less revision. One is Chapter 9, on biodata, where conventional paper and pencil measures may have been supplanted by interactive equivalents, which, however, do not seem to have been researched much, if at all. The other is Chapter 5, on the letter of reference, which has never been researched adequately, despite being so widely used. Every chapter has been rewritten even where there is not all that much new research to describe.

Established truths, or beliefs, continue to be questioned. Issues formerly described as finally settled and not needing any further discussion have been reopened, notably differential validity (whether the correlation between test and work performance might be different for different sections of the population, most particularly for white and non-white Americans). Another ‘closed’ issue that has been reopened is the importance, or unimportance, of specific abilities compared with general mental ability. There certainly seems to be a trend for things that were formerly described confidently as not a problem to be appearing perhaps to pose a problem after all.

There is growing awareness of how different selection tests correlate, which tends to cast doubt on approaches that emphasize the paramount importance of matching the test to the job. Emphasis on identifying separate aspects of work performance, notably organizational citizenship, counterproductive work behaviour and adaptability, runs in parallel with the suggestion that there might be a tendency for all measures of work performance to be positively correlated, the ‘monolithic’ hypothesis.

To keep the list of references to a reasonable length, references are not necessarily given for points that are not central to selection, e.g. heritability, or personality theory.

The key references sections at the end of each chapter are selected to be accessible, meaning they are written in English, and so far as possible obtainable through PsychInfo or other online systems. This tends to mean journal articles are included, whereas chapters in books are not.

Certain types of material I have generally not included, including simulations of work using students, and ‘Monte Carlo’ simulations in which sets of data are generated according to certain rules, then analysed as if they were ‘real’ data. I have always thought these an example of getting out what you put in, and not very useful.

One area that might be moving towards becoming important, but also controversial, could be the roles of commercial interests in general, and test publishers in particular. To declare my interests in this area, I have been involved in the publication of psychological tests in the past, but am not now.

I would to thank Swansea University for all their help with library and other facilities, and Karen Howard for her invaluable continuing support.

Department of PsychologySwansea University2015

Preface to the first edition

When I first proposed writing this book, I thought it self-evident that personnel selection and productivity are closely linked. Surely an organization that employs poor staff will produce less, or achieve less, than one that finds, keeps and promotes the right people. So it was surprising when several people, including one anonymous reviewer of the original book proposal, challenged my assumption, and argued that there was no demonstrated link between selection and productivity.

Critics are right, up to a point – there has never been an experimental demonstration of the link. The experiment could be performed, but it might prove very expensive. First, create three identical companies. Second allow company A to select its staff by using the best techniques available, require company B to fill its vacancies at random (so long as the staff possess the minimum necessary qualifications), and require company C to employ the people company A identified as least suitable. Third, wait for a year and then see which company is doing best, or – if the results are very clear-cut – which companies are still in business. No such experiment has been performed, although fair employment laws in the USA have caused some organizations to adopt at times personnel policies that are not far removed from the strategy for company B.

Perhaps critics only meant to say that the outline overlooked other more important factors affecting productivity, such as training, management, labour relations, lighting and ventilation, or factors which the organization cannot control such as the state of the economy, technical development, foreign competition, and political interference. Of course all of these affect productivity, but this does not prove that – other things being equal – an organization that selects, keeps and promotes good employees will not produce more, or produce better, than one that does not.

Within-organization factors that affect productivity are dealt with by others writings on industrial/organizational psychology. Factors outside the organization, such as the state of world trade, fall outside the scope of psychology.

Swansea, 1995