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Applied Psychology in Talent Management

Applied Psychology in Talent Management

Eighth Edition
Additional resources:

August 2018 | 632 pages | SAGE Publications, Inc
Now with SAGE Publishing!

In Applied Psychology in Talent Management, world-renowned authors Wayne F. Cascio and Herman Aguinis provide the most comprehensive, future-oriented overview of psychological theories and how those theories impact people decisions in today’s ever-changing workplace. Taking a rigorous, evidence-based approach, the new Eighth Edition includes more than 1,000 new citations from more than 20 top-tier journal articles. The authors emphasize the latest developments in the field—all in the context of historical perspectives. Integrated coverage of technology, strategy, globalization, and social responsibility throughout the text provides students with a holistic view of the field and equips them with the practical tools to create productive, enjoyable work environments. 
Preface to the 8th Edition
About the Authors
Chapter 1: Organizations, Work, and Applied Psychology
The Pervasiveness of Organizations  
Differences in Jobs  
Differences in Performance  
A Utopian Ideal  
Point of View  
Personnel Psychology and Talent Management in Perspective  
Globalization of Product and Service Markets  
Impact on Jobs and the Psychological Contract  
Effects of Technology on Organizations and People  
Changes in the Structure and Design of Organizations  
Changing Roles of Managers and Workers  
Changing Demographics  
Implications for Organizations and Their People  
Plan of the Book  
Chapter 2: The Law and Talent Management
The U.S. Legal System  
Legal Systems Outside the United States  
Unfair Discrimination: What Is It?  
Legal Framework for Civil Rights Requirements  
The U.S. Constitution—Thirteenth and Fourteenth Amendments  
Civil Rights Acts of 1866 and 1871  
Equal Pay for Equal Work Regardless of Sex  
Equal Pay Act of 1963  
Equal Pay for Jobs of Comparable Worth  
Equal Employment Opportunity: Title VII of the Civil Rights Act of 1964  
Nondiscrimination on the Basis of Race, Color, Religion, Sex, or National Origin  
Retaliation, and Employment Advertising  
Suspension of Government Contracts and Back-Pay Awards  
Exemptions to Title VII Coverage  
Age Discrimination in Employment Act of 1967 (as Amended in 1986)  
Immigration Reform and Control Act of 1986  
Americans with Disabilities Act of 1990 (as Amended in 2008)  
Provisions of the ADA  
Enforcement of the ADA  
Civil Rights Act of 1991  
Monetary Damages and Jury Trials  
Adverse Impact (Unintentional Discrimination) Cases  
Protection in Foreign Countries  
Racial Harassment  
Challenges to Consent Decrees  
Mixed-Motive Cases  
Seniority Systems  
Race Norming  
Extension to U.S. Senate and Appointed Officials  
Family and Medical Leave Act of 1993  
Uniformed Services Employment and Reemployment Rights Act of 1994  
Enforcement of the Laws—Regulatory Agencies  
State Fair Employment Practices Agencies  
Equal Employment Opportunity Commission  
The Complaint Process  
Office of Federal Contract Compliance Programs  
Goals and Timetables  
Employment Case Law—General Principles  
Personal History  
Sex Discrimination  
Preventive Actions by Employers  
Age Discrimination  
“English Only” Rules—National Origin Discrimination?  
Preferential Selection  
Chapter 3: People, Decisions, and the Systems Approach
Costs and Consequences of Decisions—A Way of Thinking  
Organizations as Systems  
A Systems View of the Staffing Process  
Optimizing Staffing Investments  
Optimizing Staffing Outcomes  
A Systems View of the Broader Employment Process  
Work Analysis  
Strategic Workforce Planning  
Initial Screening  
Training and Development  
Performance Management  
Organizational Exit  
Chapter 4: Criteria: Definitions, Measures, and Evaluation
Job Performance as a Criterion  
Dimensionality of Criteria  
Static Dimensionality  
Dynamic or Temporal Dimensionality  
Individual Dimensionality  
Challenges in Criterion Development  
Challenge #1: Job Performance (Un)Reliability  
Challenge #2: Reliability of Job Performance Observation  
Challenge #3: Dimensionality of Job Performance  
Performance and Situational Characteristics  
Environmental and Organizational Characteristics  
Environmental Safety  
Lifespace Variables  
Job and Location  
Extraindividual Differences and Sales Performance  
Steps in Criterion Development  
Evaluating Criteria  
Sensitivity or Discriminability  
Criterion Deficiency  
Criterion Contamination  
Bias Due to Knowledge of Predictor Information  
Bias Due to Group Membership  
Bias in Ratings  
Composite Criterion Versus Multiple Criteria  
Composite Criterion  
Multiple Criteria  
Differing Assumptions  
Resolving the Dilemma  
Research Design and Criterion Theory  
Distribution of Performance and Star Performers  
Chapter 5: Performance Appraisal and Management
Purposes Served  
Realities and Challenges of Performance Management Systems  
Fundamental Requirements of Successful Performance Management Systems  
Benefits of State-of-the-Science Performance Management Systems  
Who Shall Rate?  
Immediate Supervisor  
Clients Served  
Appraising Performance: Individual Versus Group Tasks  
Putting It All Together: 360-Degree Systems  
Agreement and Equivalence of Ratings Across Sources  
Judgmental Biases in Rating  
Leniency and Severity  
Central Tendency  
Types of Performance Measures  
Objective Measures  
Subjective Measures  
Rating Systems: Relative and Absolute  
Relative Rating Systems (Employee Comparisons)  
Rank Ordering  
Paired Comparisons  
Forced Distribution  
Absolute Rating Systems  
Behavioral Checklists  
Forced-Choice System  
Critical Incidents  
Graphic Rating Scales  
Behaviorally Anchored Rating Scales  
Summary Comments on Rating Formats and Rating Process  
Factors Affecting Subjective Appraisals  
Evaluating the Performance of Teams  
Rater Training  
The Social, Emotional, and Interpersonal Context of Performance Management Systems  
Performance Feedback: Appraisal and Goal-Setting Interviews  
Communicate Frequently  
Get Training in Appraisal  
Judge Your Own Performance First  
Encourage Subordinate Preparation  
Use “Priming” Information  
Warm Up and Encourage Participation  
Judge Performance, Not Personality or Self-Concept  
Be Specific  
Be an Active Listener  
Avoid Destructive Criticism and Threats to the Employee’s Ego  
Set Mutually Agreeable and Formal Goals  
Continue to Communicate and Assess Progress Toward Goals Regularly  
Make Organizational Rewards Contingent on Performance  
Chapter 6: Measuring and Interpreting Individual Differences
What Is Measurement?  
Scales of Measurement  
Nominal Scales  
Ordinal Scales  
Interval Scales  
Ratio Scales  
Scales Used in Applied Psychological Measurement  
Selecting and Creating the Right Measure  
Steps for Selecting and Creating Measures  
Determining a Measure’s Purpose  
Defining the Attribute  
Developing a Measure Plan  
Writing Items  
Conducting a Pilot Study and Traditional Item Analysis  
Conducting an Item Analysis Using Item Response Theory  
Selecting Items  
Determining Reliability and Gathering Evidence for Validity  
Revising and Updating Items  
Selecting an Appropriate Measure: Test-Classification Methods  
Standardized and Nonstandardized Tests  
Further Considerations in Selecting a Test  
Reliability as Consistency  
Estimation of Reliability  
Parallel (or Alternate) Forms  
Internal Consistency  
Kuder-Richardson Reliability Estimates  
Split-Half Reliability Estimates  
Stability and Equivalence  
Interrater Reliability  
Interpretation of Reliability  
Range of Individual Differences  
Difficulty of the Measurement Procedure  
Size and Representativeness of Sample  
Standard Error of Measurement  
Scale Coarseness  
Generalizability Theory  
Interpreting the Results of Measurement Procedures  
Looking to the Future: Anticipated Innovations in Applied Psychological Measurement  
Chapter 7: Validation and Use of Individual-Differences Measures
Relationship Between Reliability and Validity  
Evidence of Validity  
Content-Related Evidence  
Criterion-Related Evidence  
Predictive Studies  
Concurrent Studies  
Requirements of Criterion Measures in Predictive and Concurrent Studies  
Factors Affecting the Size of Obtained Validity Coefficients  
Range Enhancement  
Range Restriction  
Position in the Employment Process  
Form of the Predictor–Criterion Relationship  
Construct-Related Evidence  
Construct Validation Process  
An Illustration of Construct Validation  
Empirical Cross-Validation  
Statistical Cross-Validation  
Comparison of Empirical and Statistical Strategies  
Gathering Validity Evidence When Local Validation Is Not Feasible  
Synthetic Validity  
Test Transportability  
Validity Generalization  
How to Conduct a VG Study  
Refinements to VG Techniques  
Challenges in Conducting a VG Study  
Empirical Bayesian Analysis  
Application of Alternative Validation Strategies: Illustration  
Chapter 8: Fairness in Employment Decisions
Assessing Differential Validity  
Differential Validity and Adverse Impact  
Differential Validity: The Evidence  
Assessing Differential Prediction and Moderator Variables  
Differential Prediction: The Evidence  
Problems in Testing for Differential Prediction  
Using Meta-Analysis to Assess Differential Prediction  
Suggestions for Improving the Accuracy of Slope-Based Differential Prediction Assessment  
Further Considerations Regarding Adverse Impact, Differential Validity, and Differential Prediction  
Minimizing Adverse Impact Through Test-Score Banding  
Fairness and the Interpersonal Context of Employment Testing  
Fair Employment and Public Policy  
Chapter 9: Analyzing Jobs and Work
Definition, Professional Standards  
Aligning Method With Purpose  
Defining the Job  
Job Specifications  
Reliability and Validity of Work Analysis Information  
Obtaining Information About Jobs and Work  
Direct Observation and Job Performance  
SME Panels  
The Position Analysis Questionnaire  
Fleishman Job Analysis Survey  
Critical Incidents  
Other Sources of Job Information and Job Analysis Methods  
The Job Analysis Wizard  
Incorporating Personality Dimensions Into Job Analysis  
Strategic or Future-Oriented Work Analyses  
Competency Models  
Work Analysis for Star Performers  
Cognitive Task Analysis  
Occupational Information—From the Dictionary of Occupational Titles to O*NET®  
Multiple Windows  
Common Language  
Taxonomies and Hierarchies of Occupational Descriptors  
The O*NET® Content Model  
Chapter 10: Strategic Workforce Planning
What Is Strategic Workforce Planning?  
Strategic Business and Workforce Plans  
Levels of Planning  
The Strategic Planning Process  
An Alternative Approach  
Payoffs From Strategic Planning  
Relationship of HR Strategy to Business Strategy  
Talent Inventory  
Information Type  
Forecasts of Workforce Supply and Demand  
External Workforce Supply  
Internal Workforce Supply  
From Predictable to Unpredictable Supplies of Labor  
Leadership-Succession Planning  
Chief Executive Officer (CEO) Succession  
Workforce Demand  
Pivotal Jobs  
Assessing Future Workforce Demand  
How Accurate Must Demand Forecasts Be?  
Integrating Supply and Demand Forecasts  
Matching Forecast Results to Action Plans  
Control and Evaluation  
Sampling and Measuring Performance  
Identifying an Appropriate Strategy for Evaluation  
Responsibility for Workforce Planning  
Chapter 11: Recruitment
Recruitment Planning  
Internal Recruitment  
External Recruitment  
Staffing Requirements and Cost Analyses  
Source Analysis  
External Sources for Recruiting Applicants  
Managing Recruiting Operations  
Measurement, Evaluation, and Control  
Job Search From the Applicant’s Perspective  
Realistic Job Previews  
Chapter 12: Selection Methods
Personal History Data  
Weighted Application Blanks  
Biographical Information Blanks  
Credit History  
Response Distortion in Personal History Data  
Validity of Personal History Data  
Bias and Adverse Impact  
What Do Biodata Mean?  
Recommendations and Reference Checks  
Polygraph Tests  
Honesty Tests  
Evaluation of Training and Experience  
Drug Screening  
Computer-Based Screening  
Employment Interviews  
Response Distortion in the Interview  
Reliability and Validity  
Factors Affecting the Decision-Making Process  
Social/Interpersonal Factors  
Cognitive Factors  
Individual Differences  
Effects of Structure  
Summary of Evidence-Based Suggestions for Improving the Interview Process and Outcome  
The Future Is Now: Technology and Big Data  
Social Media  
Mobile and Web-Based Selection  
Computer Scoring of Text  
Remote Interviewing  
Virtual Reality Technology  
Chapter 13: Managerial Selection Methods
Criteria of Managerial Success  
Global Criterion Measures  
The Importance of Context  
Instruments of Prediction  
Cognitive Ability Tests  
Controversial Issues in the Use of Cognitive Ability Tests  
A Recommendation to Address the Controversy  
Objective Personality Inventories  
Why and When Does Personality Predict Performance?  
Response Distortion in Personality Inventories  
Strategies to Mitigate Response Distortion  
Leadership Ability Tests  
Motivation to Manage  
Personal History Data  
Peer Assessment  
Work Samples of Managerial Performance  
Leaderless Group Discussion  
Effects of Training and Experience  
The In-Basket Test  
The Business Game  
Situational Judgment Tests  
Assessment Centers  
Assessment Center: The Beginnings  
Level and Purpose of Assessment  
Duration and Size  
Assessors and Their Training  
Performance Feedback  
Reliability of the Assessment Process  
Fairness and Adverse Impact  
Assessment Center Utility  
Potential Problems  
Combining Predictors  
Chapter 14: Decision Making for Selection
Personnel Selection in Perspective  
Classical Approach to Personnel Selection  
Efficiency of Linear Models in Job-Success Prediction  
Unit Weighting  
Suppressor Variables  
Data-Combination Strategies  
Types of Strategies  
Effectiveness of Alternative Data-Combination Strategies  
The Role of Subjective Judgment  
Alternative Prediction Models  
Multiple-Regression Approach  
Multiple-Cutoff Approach  
Setting a Cutoff  
Angoff Method  
Expectancy Charts  
Multiple-Hurdle Approach  
Extending the Classical Validity Approach to Selection Decisions: Decision-Theory Approach  
The Selection Ratio  
The Base Rate  
Utility Considerations  
Evaluation of the Decision-Theory Approach  
Understanding Outcomes of Selection Decisions: Utility Analysis  
The Naylor–Shine Model  
The Brogden–Cronbach–Gleser Model  
Further Developments of the Brogden–Cronbach–Gleser Model  
Alternative Methods of Estimating SDy  
Integration of Selection Utility With Capital-Budgeting Models  
Application of the Brogden–Cronbach–Gleser Model and the Need to Scrutinize Utility Estimates  
Top Scorers May Turn Down the Offer  
There Is a Discrepancy Between Expected and Actual Performance Scores  
Economic Factors Affect Utility Estimates  
Top Management May Not Believe the Results  
Utility and Usefulness  
The Strategic Context of Personnel Selection Decisions  
Chapter 15: Training and Development: Considerations in Design
Factors Driving the Increasing Demand for Workplace Training  
Training and Development Activities: What Are They?  
Training Design  
Characteristics of Effective Training  
Additional Determinants of Effective Training  
Fundamental Requirements of Sound Training Practice  
Defining What Is to Be Learned  
Interactions of Training and Development With Other Systems  
Assessing Training Needs  
Organization Analysis  
Demographic Analysis  
Operations Analysis  
Individual Analysis  
Rapid Prototyping  
Specifying Training Objectives  
Creating an Optimal Environment for Training and Learning  
Team Training  
Learning and Individual Differences  
Trainability and Individual Differences  
Principles That Enhance Learning  
Goal Setting  
Behavior Modeling  
Meaningfulness of the Material  
Active Practice  
Length of the Practice Session  
Transfer of Training  
Chapter 16: Training and Development: Implementation and the Measurement of Outcomes
Categories of Training and Development Methods  
Presentation Methods  
Hands-On Methods  
Group-Building Methods  
Technology-Based Training  
Technique Selection  
Measuring Training and Development Outcomes  
Why Measure Training Outcomes?  
Essential Elements of Measuring Training Outcomes  
Types of Criteria  
Levels of Criteria  
Additional Considerations in Measuring Training Outcomes  
Strategies for Measuring Training Outcomes in Terms of Financial Impact  
An Illustration of Utility Analysis  
Why Not Hold All Training Programs Accountable Strictly in Economic Terms?  
Influencing Managerial Decisions With Program-Evaluation Data  
Classical Experimental Designs  
Design A  
Design B  
Design C  
Design D  
Limitations of Experimental Designs  
Quasi-Experimental Designs  
Design E  
Design F  
Design G  
Design H  
Statistical, Practical, and Theoretical Significance  
Logical Analysis  
Chapter 17: International Dimensions of Talent Management
Capitalism in the 21st Century  
Globalization and Culture  
Vertical and Horizontal Individualism and Collectivism  
Country-Level Cultural Differences  
Theoretical and Methodological Developments in the Study of Culture  
The Globalization of Psychological Measurement  
Transporting Psychological Measures Across Cultures  
Identification of Potential for International Management and Cultural Competence  
Selection for International Assignments  
General Mental Ability  
Personality Characteristics and Expatriate Success  
Other Characteristics Related to Success in International Assignments  
Cross-Cultural Training  
Performance Management  
Performance Criteria  
Who Should Assess Expatriate Performance?  
Performance Feedback  
Career Management  
Chapter 18: Organizational Responsibility and Ethical Issues in Talent Management  
Organizational Responsibility: Definition and General Framework  
Organizational Responsibility: Benefits  
Organizational Responsibility: Implementation and the Role of Human Resource Management Research and Practice  
Employee Privacy  
Safeguarding Employee Privacy  
Fair Information Practice in the Information Age  
Employee Searches and Other Workplace Investigations  
Testing and Evaluation  
Obligations to One’s Profession  
Obligations to Those Who Are Evaluated  
Obligations to Employers  
Individual Differences Serving as Antecedents of Ethical Behavior  
Ethical Issues in Organizational Research  
Ethical Issues at the Research-Planning Stage  
Ethical Issues in Recruiting and Selecting Research Participants  
Ethical Issues in Conducting Research: Protecting Research Participants’ Rights  
Ethical Issues in Reporting Research Results  
Strategies for Addressing Ethical Issues in Organizational Research  
Science, Advocacy, and Values in Organizational Research  
Appendix A: Scientific and Legal Guidelines on Employee Selection Procedures— Checklists for Compliance
Scientific Guidelines—Summary Checklist  
Sources of Validity Evidence  
Planning the Validation Effort and Analysis of Work  
Criterion-Related Evidence of Validity  
Criterion Development  
Choice of Predictors  
Choice of Participants  
Data Analysis for Criterion-Related Validity  
Evidence for Validity Based on Content  
Evidence of Validity Based on Internal Structure  
Generalizing Validity Evidence  
Fairness and Bias  
Operational Considerations  
Initiating a Validation Effort  
Selecting Assessment Procedures for the Validation Effort  
Selecting the Validation Strategy  
Selecting Criterion Measures  
Data Collection  
Data Analyses  
Communicating the Effectiveness of Selection Procedures  
Appropriate Use of Selection Procedures  
Technical Validation Report  
Administration Guide  
Other Circumstances Regarding the Validation Effort and Use of Selection Procedures  
Legal Guidelines on Employee Selection Procedures  
1. Adverse Impact  
A. Records Relating to Adverse Impact  
B. Special Record-Keeping Provisions  
C. Four-Fifths Rule  
D. Adverse Impact When User Meets Four-Fifths Rule  
E. Qualifying Circumstances Relating to Adverse Impact  
2. Validation  
A. General Information Regarding Validity  
B. Identifying Information  
C. Job Analysis  
D. Professional Control  
3. Criterion-Related Validity  
A. Sample  
B. Criterion Measures  
C. Fairness of Criterion Measures  
D. Results  
E. Corrections and Categorization  
F. Concurrent Validity  
G. Prediction of Performance on Higher-Level Jobs  
H. Fairness  
4. Content Validity  
A. Relevance of a Content Validity Strategy  
B. Relation Between Selection Procedure and Work Behaviors  
C. Knowledge, Skills, and Abilities  
D. Adequacy of Simulation  
E. Training  
5. Construct Validity  
6. Validity Generalization  
7. Application  
A. Use of Selection Procedures  
B. Test Administration  
C. Selection Decisions  
D. Reduction of Adverse Impact  
E. Currency, Interim Use  
Appendix B: An Overview of Correlation and Linear Regression
The Concept of Correlation  
The Concept of Regression  
Making Predictions Based on Multiple Predictors  
Predictive Accuracy of Multiple Regression  
Appendix C: Decision Trees for Statistical Methods
Author Index
Subject Index


Instructor Teaching Site

Password-protected Instructor Resources include the following:


  • Test banks with a diverse range of prewritten options and the opportunity to edit any question and/or insert your own personalized questions to effectively assess students’ progress and understanding.
  • Instructor Manual linking chapter objectives to key concepts and suggested teaching strategies, as well as suggested exercises and projects.
  • Editable, chapter-specific PowerPoint® slides that offer complete flexibility for creating a multimedia presentation for your course.
  • Multimedia content that includes videos and audio files.

Applied Psychology in Talent Management contains a great breadth of really solid coverage of fundamental concepts and great examples.” 

Frank Igou
Louisiana Tech University

“This book has always been the most substantive coverage of applied psychology on the market.” 

John F. Binning
Illinois State University

“I think the book’s biggest strength is its comprehensive integration and review of HR processes, psychological theory, and applied examples. It is a great resource for both individuals new to the field and individuals interested in refreshing on topics they have studied for years. This text is a reliable source of information, in that researchers and practitioners alike feel secure in turning to this source for detailed information on a number of topics. It is a good multipurpose resource that holds up well over time.” 

Rebecca J. Thompson
University of Baltimore

“Cascio and Aguinis’s text is the gold standard for applied psychology in HRM and industrial psychology. It provides extensive research support and covers topics with a detailed empirical analysis unparalleled in rival texts. It is a MUST-read for graduate students in I/O psychology.” 

Brian W. Schrader
Emporia State University

“Theory based but practical, this book provides a useful resource for researchers and practitioners alike with concrete examples and illustrations.” 

Margaret Beier
Rice University

“An excellent introduction to personnel psychology that follows the principles of the scientist-practitioner model well.” 

Joseph J. Mazzola
Roosevelt University

“The book is very detail oriented and includes relevant research findings to corroborate key HRM concepts. I especially like the use of headings and bullet points in each chapter. Thus the organization of the chapter becomes clearer and easily understandable.” 

Neelam Rattan
San Jose State University

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ISBN: 9781506375915