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Corporate Restructure: Employee Screening, Selection & Placement

Updated on May 16, 2013

When a company or business undergoes a restructuring it is vitally important to ensure the continued validity and effectiveness of current jobs and evaluation to determine possible dissolving and/or addition of jobs. In particular to a company who is restructuring, jobs may be eliminated and/or absorbed to accommodate the change. To effectively accomplish this, each job, both current and due for absolution, must be evaluated for validity of their current job criteria and the possible addition of criteria being added to other job positions. I addition to archival data such as past performance reviews techniques such as job observation/participation, employee interviews and/or employee surveys can be used.

Each of these will grant different types of information regarding the various aspects of the job being evaluated and give the I/O psychologist a more comprehensive understanding of the criterion required of a successful candidate for employment (Riggio E. R, 2008). However, it is important that the I/O psychologist establish a base rate of success for the current employees to use as a framework for future analysis. Scores would be collected then analyzed most probably with a multiple cut-off model. This model dictates that the applicant attain a minimum score on each test variable to be considered for hire. Those that miss the cut-off on any variable are not considered for employment. This data may be obtained through any of the previously listed evaluation techniques.

Criteria from a worker-oriented perspective must also be determined so as to establish predictive success of the current or potential employees. Determining the current base rate of success for all employees with regards to their current job position is integral when determining job validity and the prospective effectiveness, performance and skill level necessary to perform the designated duties and responsibilities. In the case of a corporate restructuring it is necessary to evaluate each job description and high-lite criteria and subsequent predictors integral to the continued operation and success of the business (Riggio E. R., 2008). Each of these can then be assigned a rating with regards to their relative value to the company. In addition to this the individual duties and responsibilities of each position can be rated with regards to their relative value so as to establish a base by which to evaluate which positions can be reasonably dissolved and/or absorbed by other positions.

Evaluation of the current employee selection processes must be done to establish continued validity of the measures being used. These measures are inclusive of recruitment, employee screening and employee selection and placement. The most complex part of this process is that of employee screening. This process involves various methods of evaluating each applicant based on scores received throughout the screening process. Information evaluated is inclusive of “cognitive ability tests, mechanical ability tests, motor and sensory ability tests, job skills and knowledge tests, personality tests and honesty and integrity tests” (Riggio E. R., 2008). The scores of these tests can be used to help establish correlation between them and characteristics of past incumbent’s.

In addition to this, data should be collected regarding the current incumbents performance for both current and slated to be dissolved job positions with regards to the positive and negative relationships between worker-oriented analysis and job-oriented analysis criterion and their respective correlational value. This will establish a baseline with which to establish future job performance evaluation criterion and help identify particular job description elements that can be matched to another job description and job specifications so as to facilitate the effective distribution of the dissolving job position.

Integral to this process is the establishment of predictive validity. This means that there is a direct correlation between test scores and the criteria for a successful incumbent to the position. With regards to comparing the old and new selection criteria the I/O psychologist would need to measure employees based on both sets of selection criteria. The I/O psychologist would then be able show which criteria has validity with regards to their application to the various duties and responsibilities. This will allow the I/O psychologist to establish both past and current correlation of scores and criteria. Because there are new measures being instituted for employee selection administering another set of tests designed to establish concurrent validity can be used for comparison. In short showing that the tests have valid and comparable results (Riggio E. R., 2008). Although concurrent validity is much quicker to establish than predictive validity the results are not as accurate due to the likelihood of the incumbents attaining higher scores as a result of experience in the position. It could be reasoned that due to this disparity in data that the test for concurrent validity may not be viable it also stands to reason from an analytic perspective that the more raw data acquired the greater the accuracy of employee assessment and selection method validity.

As important as the job description/specifications and employee screening/selection are to the restructuring of the business, the I/O psychologist must be mindful of their decisions regarding the hiring and placement of potential employees so as to be compliant with standards established by the Equal Employment Opportunity Commission (EEOC). In summation this is a federal agency established to ensure that citizens in the United States are not discriminated from employment based on anything but their pre-employment screening results (EEOC, 2013).

In particular the I/O psychologist must ensure that the hiring decisions do not create adverse impact on protected groups inclusive of African, Asian and Native Americans, Latinos and women (Riggio E. R., 2008). This criteria establishes the white male as the opposing factor with which balance must be maintained. Currently adverse impact is considered to be created if 80% of the hiring decisions made from diverse and qualified applicants are white males. With regards to the restructuring, addition and elimination of jobs it is important that the decision for hire and job placement be reflective of this policy both in a departmental and corporate context.

In summation the task of restructuring the work force of a company is a complex process of multiple data retrieval techniques and multiple validity measures, all designed to discover, evaluate and validate as many criteria and predictors pertaining the selected job and current/potential incumbent as possible so as to present the candidate that exhibits the highest potential for success. This process can be long and inclusive of many different techniques and tools that may also be handled by many different entities be them personal or organizational. Regardless of the time, resources and monetary consumption required to perform this analysis it is integral for the success of the company in that it reduces the occurrence of dysfunctional components to the employee structure. Much like a clock with a faulty gear or spring will eventually fail, so too will a company with dysfunctional components. In this an I/O psychologist could be considered the Horologist (or clock keeper) of employee/employer relationship.


EEOC), (2013). Overview, Equal Employment Opportunity Commission, Retrieved on Apr. 21 2013 from

Riggio E. R., (2008). Job Analysis, Chapter 3, Introduction to Industrial/Organizational Psychology, Pearson Education Inc. p. 60

Riggio E. R., (2008). Employee Selection, Chapter 4, Introduction to Industrial/Organizational Psychology, Pearson Education Inc. p. 86, 93 & 118


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      Carolyn 3 years ago

      Your blogs have tremendously helped me in figuring out this class...I'm in a retake due to pregnancy last year...quite possibly we were in same class then...but anyway thank you! And good luck!