(a) "Different types of tests are used in the selection of employees." Discuss. 20 (b) Discuss the implications of Maslow's need…

(a) Tests used in the selection of employees

Selection tests are standardised, objective measures of the abilities, knowledge and traits of candidates, used to predict job success and to supplement the application form and interview. They are useful only if they are reliable (give consistent results) and valid (predict performance), and if they are standardised with norms.

The main types are:

• Aptitude tests: they measure potential to learn, covering intelligence (Raven's Progressive Matrices), mechanical, clerical, numerical and verbal aptitude, and psychomotor ability.
• Achievement or proficiency tests: they measure what the candidate already knows or can do, such as a typing test, a trade test or a job-knowledge test.
• Personality tests: they measure traits such as emotional stability, extraversion and integrity, by objective inventories (16PF, Myers-Briggs, the Big Five) and by projective tests (Rorschach, TAT), which are harder to interpret.
• Interest tests: they find the fields a person prefers (Strong or Kuder inventories).
• Situational and work-sample tests: they ask the candidate to do a part of the job, such as in-basket exercises, group discussion or assessment centre exercises.
• Honesty or integrity tests, and medical tests for fitness.

For example, a bank can use a numerical aptitude test and a situational judgement test for clerks, and a manufacturer a trade test for a machinist.

Merits: tests are objective, cut selection errors, reduce bias and save time with large numbers. Limits: a test can be faked, may be culturally biased, may not predict performance in a changed job, may cause stress and is costly to validate. They should be used with other tools, administered by trained persons, kept confidential and must not discriminate unfairly. Used with these safeguards, they raise the quality of selection.

(b) Implications of Maslow's and Herzberg's theories for motivation and compensation

Maslow arranged human needs in a hierarchy: physiological, safety, social, esteem and self-actualisation. A satisfied need no longer motivates, and the next higher need takes over. Herzberg's two-factor theory separates hygiene factors (pay, security, conditions, supervision, policy), which prevent dissatisfaction but do not motivate, from motivators (achievement, recognition, responsibility, advancement and the work itself), which create satisfaction.

Implications for motivation:

• Managers must find the unsatisfied need of each employee, since the same reward does not motivate everyone.
• Lower-order needs and hygiene factors must be met first, as fair pay and safe conditions are a precondition, not a spur.
• Real motivation comes from higher-order needs, through job enrichment, autonomy, challenge, recognition and career growth.

Implications for compensation:

• A fair base pay, benefits, job security and good conditions meet the physiological, safety and hygiene needs and avoid dissatisfaction.
• Beyond that, more money has diminishing effect; compensation should be linked to performance (incentives, bonuses, ESOPs, profit-sharing) so that it signals recognition and achievement.
• Non-monetary rewards (recognition, awards, titles, development opportunities) address esteem and self-actualisation, and flexible or cafeteria benefits let employees choose what suits their needs.

Both theories explain why pay alone does not motivate, though Herzberg's views on pay are disputed, as pay may also be a motivator for some. Maslow's strict order is not always supported by evidence. Used together, they suggest a balance of a sound pay structure with a motivating job.

(c) Traditional and modern methods of performance appraisal

Traditional methods rely on judgement by the superior of the traits and past performance of employees, while modern methods are based on results, behaviour and development.

Traditional methods include graphic rating scales, ranking and paired comparison, forced distribution, checklists, essays and confidential reports. Modern methods include management by objectives (MBO), behaviourally anchored rating scales (BARS), assessment centres, 360-degree feedback and human resource accounting.

Differences:

• Basis: traditional methods assess personal traits such as initiative or loyalty; modern methods assess results against agreed goals or observed behaviour.
• Orientation: traditional methods look at past performance and are judgemental; modern methods are future-oriented and developmental.
• Rater: traditional methods use the superior alone; modern methods may use peers, subordinates, customers and self (360-degree).
• Subjectivity: traditional methods are open to halo, leniency and bias; modern methods are more objective, with clear standards.
• Participation: the employee is passive in traditional methods but takes part in goal setting and feedback in modern methods.
• Use: traditional methods serve pay and promotion decisions; modern methods also guide training and career planning.

Modern methods are more costly and need training of raters, so many firms combine both.