An Investigation Into The Use Of Ability Tests In The Selection Process At GE Capital (2010)
This dissertation investigates whether the use of ability tests at GE Capital Consumer Finance is adding any value to the selection procedure. Ability tests are used as part of assessment centres at GE Capital Consumer Finance. Verbal and numeric ability tests are used as the selection methods alongside other selection methods such as interviews and group tasks. The group of employees selected for the purpose of this investigation was Interns due to accessibility of their test scores. Interns are university students taking a year out to work in the company as part of their undergraduate degree course. They are employed by the company for one year and are exposed to a wide range of processes in order to enhance their understanding of the business world in their chosen area.
The literature review discusses the history of ability tests and their use in organisations today. It discusses the different types of tests, reliability and validity of tests as well as limitations of test usage. The literature review provides a basis for the primary research which investigates whether, as suggested in the literature, ability tests are adding value to the selection procedure. In order to investigate this, assessors from various departments of the Consumer Finance sector of GE Capital are interviewed in order to find out how much consistency there is in terms of the types of tests and norm groups that are being used and how much consistency there is in terms of the importance placed on the test scores in the selection procedure.
Test scores for Interns were then compared to their appraisals in order to determine whether or not the tests were successful in predicting future job performance. The interviews show that there is consistency throughout the majority of the organisation in terms of the types of ability tests and norm groups that are being used for jobs at each level. The interviews also show however that there are inconsistencies in terms of how much emphasis is placed on the test scores in the decision making process. In addition to this there are inconsistencies in terms of the pass mark that is used in the tests. It was found that the inconsistencies arose due to opinions that the ability test being used were not of relevance to the jobs that they were being used for.
From comparison of intern test scores and their appraisals, there was no correlation between the two sets of data. This therefore suggests that ability tests are not successful predictors of future job performance. In conclusion, this investigation shows that the current use of ability tests are not adding any value to the selection procedure. Suggestions are therefore made as to changes that could be made to ensure the ability test and norm groups are more relevant to the jobs. This should lead to the tests having more value in the selection procedure as well as being more accurate predictors of future job performance.
- 20,000 words – 74 pages in length
- Outstanding use of literature
- Good in depth analysis
- Includes interview transcripts
- Ideal for HRM students
1 – Introduction
2 – Literature Review
The Development of Psychometric Tests
The Issue in Context
3 – Research Methods
The Issue in Context
The Sample Chapter
4 – Results
Comparison of Test Scores and Appraisals for Interns
Analysis of Results
5 – Conclusions
6 – Recommendations
Suggestions for Further Study