2.5.10 Validation and Evaluation of

2.5.10 Validation and Evaluation of a Selection ProcessThe value of a selection procedure is determined by how well it contributes to hiring successful employees. If an extremely high proportion of employees achieve success even when they have been hired at random, an elaborate selection procedure would be worthless However, if only a small proportion of randomly selected employees achieve success, then a careful selection procedure would be valuable, especially if the position is important. For example, an elaborate selection procedure for hiring a landscaping crew would be unnecessary since most applicants could probably handle a rake and a shovel, or it would be discovered very quickly if they couldn’t. However, the selection of someone to operate a backhoe or other heavy equipment should involve a careful selection procedure.In every situation, the costs of using a predictor should be weighed against the benefits expected from it. The costs, which include such items as the cost of the interviewer’s time, Printing application forms, and buying and scoring personnel tests, are usually easy to compute through standard cost accounting procedures. However, the benefits are more difficult to estimate. The benefits obtained from using a new predictor are determined by three factors: (a)the selection ratio, (b)the validity coefficient, and (c)the base rate of success.Selection ratio: The selection ratio is defined by the formula