MGTO 324 Workshop 6: Criterion Validity. Multiple Regression Analysis Background You are an HR manager of an insurance firm. The most salient culture.
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MGTO 324
Workshop 6: Criterion Validity
Multiple Regression Analysis
Background You are an HR manager of an insurance firm. The most
salient culture in this organization is that they want their insurance agents to be
creative in helping their clients solve their financial problems. calm and patient in listening and understanding the clients’
needs. Supervisors gave an overall performance rating for each
agent according to the above criteria. Suppose you used two personality scales, Openness to
Experience and Emotional Stability, to predict job performance.
You choose to measure these two personality traits because they are theoretically related to job performance in this context.
You collected the personality data two years ago and the job performance ratings this year.
Criterion-related validity
Try to show criterion-related evidence of the two personality scales
In addition, try to show the value of the personality tests by assessing the incremental validity of each scale
Simple correlation
Correlations
1 .526** .298**. .000 .003
97 97 97.526** 1 .030.000 . .773
97 97 97.298** .030 1.003 .773 .
97 97 97
Pearson CorrelationSig. (2-tailed)NPearson CorrelationSig. (2-tailed)NPearson CorrelationSig. (2-tailed)N
Performance_Rating
Openness_to_Experience
Emotional_Stability
Performance_Rating
Openness_to_Experience
Emotional_Stability
Correlation is significant at the 0.01 level (2-tailed).**.
Scatter Plot
1.00 2.00 3.00 4.00 5.00 6.00 7.00
Openness_to_Experience
1.00
2.00
3.00
4.00
5.00
6.00
Perf
orm
ance
_Rat
ing
r = .526; p < .05
2.00 3.00 4.00 5.00 6.00 7.00
Emotional_Stability
1.00
2.00
3.00
4.00
5.00
6.00
Perf
orm
ance
_Rat
ing
r = .53; p < .05
Linear Regression
Model Summary
.526a .276 .269 1.10853Model1
R R SquareAdjusted R
SquareStd. Error ofthe Estimate
Predictors: (Constant), Openness_to_Experiencea.
ANOVAb
44.601 1 44.601 36.295 .000a
116.740 95 1.229161.340 96
RegressionResidualTotal
Model1
Sum of Squares df Mean Square F Sig.
Predictors: (Constant), Openness_to_Experiencea. Dependent Variable: Performance_Ratingb.
Coefficientsa
1.933 .348 5.553 .000.504 .084 .526 6.025 .000
(Constant)Openness_to_Experience
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: Performance_Ratinga.
PR = 1.933 + .504 x OE; Z(PR) = .526 x Z(OE)
This equation accounts for 27.6% of the PR’s variance, and it is significantly better than 0%.
1.00 2.00 3.00 4.00 5.00 6.00 7.00
Openness_to_Experience
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6.00
Perf
orm
ance
_Rat
ing
r = .526; p < .05
Z(PR) = .526 x Z(OE)
Multiple regression
Equal to linear regression, except that more than one predictor in the equation PR = Constant + B(OP) x OP + B(ES) x ES
InterpretationCoefficientsa
-.031 .627 -.050 .960.489 .079 .510 6.177 .000.331 .098 .277 3.365 .001.022 .013 .136 1.651 .102.133 .216 .051 .616 .539
(Constant)Openness_to_ExperienceEmotional_StabilityAgeGender
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: Performance_Ratinga.
• OE and ES are both significant predictors.
• The explained unique portion of the PR’s variance. That is, their predictions could not be replaced by other predictors in the equation, which shows the incremental validity.
Multiple Regression Analysis
Background You are an HR manager of a firm. There are two
performance criteria Salary increase after the first year’s performance appraisal Quit intention
After reviewing some leading research articles in Journal of Applied Psychology, Personnel Psychology, and Academy of Management Journal, you are thinking that perhaps their job satisfaction and job commitment to their previous jobs (i.e., before joining your organization) may predict these two variables
You also have an intuition that the outcome criteria should be related to one’s Extraversion
You measured their job satisfaction, job commitment, and Extroversion before joining your firm
You got the two criteria data one year after performance appraisal
Assignment
Task Show the criterion validity of each predictor Show the incremental validity of each predictor Comments on the usefulness of each predictor Comments on any interesting observation
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