Problems : Estimating Percentage of Workforce ImprovementTaylor-Russell Tables
As an IO psychologist, who has been hired as an independent consultant to assist management withinterpreting the results from a recently developed selection battery, read the following scenariosbelow and advise management on whether to use the selection instruments. Remember you want to determine whether using the new selection battery will improve the company's overall performanceof its workforce and be cost effective. Currently, the base rate for the company is already at 70%,which is good but management wants improvement. Based on the following information determinewhether it would be in the company's best interest to use the new selection batteries below.
1. This selection battery has a good validity coefficient (r = .60), but there are about as many jobapplicants, as there are openings. Therefore, the selection ratio is .95.
What percentage of workforce would be good performers?What's the percent improvement?
2. Use the same selection battery above with .60 validity coefficient. There are more applicants this year and the selection ratio is .10.
What percentage of workforce would be good performers?What's the percent improvement?
3. Another selection battery has .90 validity coefficient, and the selection ratio is .90. What percentage of workforce would be good performers?What's the percent improvement?
4. A third selection batter has a lower validity coefficient of .50, the selection ratio is .05. What percentage of workforce would be good performers?What's the percent improvement?