Predicting employee theft: A quantitative review of the validity of a standardized measure of dishonesty

One tool used in the preemployment setting for the prediction of theft is thePersonnel Selection Inventory (PSI) (London House, 1980). The PSI is a paper and pencil measure containing three scales: honesty, violence/emotional instability, and drugs. This paper focussed on the usefulness of the PSI dishonesty scale in the prediction of employee theft. Criterion-related validity data from 1,806 persons across 23 samples were quantitatively summarized. All samples met predetermined decision rules. The data indicated that the validity of the PSI dishonesty scale was dependent on a severity of consequences moderator. Validity coefficients are highest when the subject's responses are anonymous, when the theft criteria are self-report measures, when the subjects are students, and when the subjects are aware that the investigator has another source of information on their honesty. In all analyses, the validity of the PSI scale was found to be in useful ranges and showed little variance across studies.The opinions expressed in the report are those of the authors, and do not necessarily represent those of any organizations with which the authors are associated. This paper was neither sponsored nor endorsed by the Defense Personnel Security Research and Education Center. Reprints may be obtained from Michael A. McDaniel, Defense Personnel Security Research and Education Center, 99 Pacific Street, Building 455, Suite E, Monterey, CA 93940.     

Employee satisfaction and theft: testing climate perceptions as a mediator

Employee theft of both property and time is an expensive and pervasive problem for American organizations. One antecedent of theft behaviors is employee dissatisfaction, but not all dissatisfied employees engage in withdrawal or theft behaviors. The authors tested a model of theft behavior by using an organization's climate for theft as an explanatory mechanism. They found that dissatisfaction influenced employee theft behaviors through the intermediary influence of employees' individual perceptions of the organization's climate for theft. The authors encourage organizations to pay attention to such climate elements and take action to alter employee perceptions if they reflect permissive attitudes toward theft.     

A review and critique of honesty test research

This paper reviews and critiques research pertaining to the three most commonly used honesty tests. Honesty tests, sometimes called integrity tests, purportedly predict theft by employees. Secondary analyses were performed to remove the effect of faking good from validity coefficients with various self-report criteria, and to supplement other analyses. The honesty tests were found to have: (a) virtually no foundation in personality or attitude theory, (b) a corrected average correlation of 0.08 with objective indices of theft (95′/0 confidence interval: 0.03 < r < 0.14), (c) a Taylor-Russell utility of approximately 1% above base rate of success, and (d) a false positive rate of 0.44 if only nontrivial thefts are considered. The honesty tests reviewed are of such marginal validity (less than 1% of the criterion variance accounted for) that their continued use in preemployment settings is seriously questioned. The comparability of these review results with those of other reviewers is discussed along with the social and legal implications of honesty testing.     

THE IMPORTANCE OF UNDERSTANDING AND CHANGING EMPLOYEE OUTCOME EXPECTANCIES FOR GAINING COMMITMENT TO AN ORGANIZATIONAL GOAL

Senior management and the union executive committee of a forest products company set an organizational goal to reduce theft from approximately a million dollars a year to zero. Salaried and hourly employees, selected at random, were interviewed regarding their outcome expectancies for honest and dishonest behavior. The responses were categorized within a 2 × 2 empathy box (honest/dishonest behavior vs. positive/negative outcome expectancies) to allow the organization's leadership to understand from the employee's perspective why there was so much theft. This information was subsequently used to alter employee outcome expectancies which, in turn, changed behavior. Theft dropped to near zero.     

Psychometric properties of the Turkish version of the Flourishing Scale and the Scale of Positive and Negative Experience

ABSTRACT

The Flourishing Scale (FS) and the Scale of Positive and Negative Experience (SPANE) are scales that are newly introduced to evaluate well–being. The present study aims to assess the psychometric distinctive features of two scales by utilising two different Turkish samples: university students (n?=?320), and employees (n?=?180). Confirmatory factor analysis results demonstrate that a one-factor model of the FS and a two–factor model of the SPANE yield significant findings in those samples. Scales’ factorial structures are valid for gender groups also they have good internal consistency. Concurrent validity, and discriminant validity with the use of several conceptually related and unrelated measures in two samples reveal satisfactory validity results for both the FS and the SPANE. The results of the present study show the utility of these scales in Turkish culture.     

Perceived organizational climate and employee counterproductivity

In this study, we replicated and extended the research of Hollinger and Clark (1983) on the prevalence and correlates of employee counterproductivity. Two separate employee groups completed an expanded version ofReid Survey III. Roughly one-third of subjects admitted to employee theft. Separate scales measuring perceived attitudes of management, of supervisors, of coworkers, and of employees themselves regarding theft all intercorrelated positively, supporting the concept of a pervasive organizational theft climate. Further, these climate measures were related to subjects' self-reported on-the-job theft. Parallel results were obtained for employee substance abuse. Implications for controlling employee counterproductivity are discussed.     

Detection of Feigned Posttraumatic Stress Disorder: A Comparison of the MMPI-2 and PAI

The Minnesota Multiphasic Personality Inventory-2 (MMPI-2) and Personality Assessment Inventory (PAI) were compared for detecting feigned posttraumatic stress disorder (PTSD) in a simulation research design. Participants were 85 undergraduates in one of three groups: PTSDs (n = 23), Fakers (n = 31), and Controls (n = 31). As expected, both the MMPI-2 and PAI discriminated PTSDs and Controls, with PTSDs scoring significantly higher on fake-bad validity scales and PTSD-relevant clinical scales. However, only the MMPI-2 discriminated Fakers and PTSDs, with Fakers scoring significantly higher on all MMPI-2 scales considered, but on only one PAI scale. Further, in logistic regression analyses the MMPI-2 demonstrated higher overall correct classification of PTSDs and Fakers than did the PAI. Although the MMPI-2 outperformed the PAI in detecting feigned PTSD, a substantial proportion of Fakers avoided detection by MMPI-2 fake-bad validity scales, suggesting that both tests are vulnerable to feigning of PTSD by motivated respondents with relatively limited coaching.     

A depressive symptom scale for the California Psychological Inventory: construct validation of the CPI-D

To facilitate life span research on depressive symptomatology, a depressive symptom scale for the California Psychological Inventory (CPI) is needed. The authors constructed such a scale (the CPI-D) and compared its psychometric properties with 2 widely used self-report depression scales: the Beck Depression Inventory and the Center for Epidemiological Studies Depression Scale. Construct validity of the CPI-D was examined in 3 studies. Study 1 established content validity, classifying CPI-D items into Diagnostic and Statistical Manual of Mental Disorders-Fourth Edition depressive symptoms. Study 2 used 3 large samples to gather evidence for reliability and validity: correlational analyses demonstrated alpha reliability and convergent and discriminant validity; factor analysis provided evidence for discriminant validity with anxiety; and regression analyses demonstrated comparative validity with existing standard PI scales. Study 3 used clinician ratings of depression and anxiety as criteria for external validity.     

Aggregated Personality, Climate and Demographic Factors as Predictors of Departmental Shrinkage

The present study investigated how demographic, personality, and climate variables act to predict departmental theft. Participants in the current field survey were 153 employees from 17 departments across two stores. The results of confirmatory factor analyses supported the construct validity of the Big Five Inventory (John, Donahue, & Kentle, 1991) and the Occupational Climate Questionnaire (Furnham & Gunter, 1997) in UK work settings. The results of regression analysis indicate that the variability in departmental theft is accountable in terms of a linear combination of demographic, personality, and climate factors. We concluded that an expanded theoretical perspective (utilizing demographic, personality, and climate variables) explained more variance than might otherwise be expected from any single perspective. Indeed, climate, personality, and demographic variables operated legitimately at the departmental level. Finally, we explained aggregated personality as a form of social interaction which is the by-product of individual differences.     

Development of a diary for use with ambulatory monitoring of mood,activities, and physiological function

This paper describes three studies developed and providing preliminary validation for a pocket-size, self-monitoring diary suitable for use infield research on relationships among psychological states, activities, and physiological events. In the first study, a principal-components analysis of the diary's mood and cognition scales yielded three factors—negative affect, engagement, and predictability. These showed moderate concordance across two samples. In the second study, diary self-ratings of events, moods, and cognitions were shown to be meaningfully correlated with ratings made by spouse observers, providing evidence of concurrent validity of the diary. In the third study, diary ratings made by the same subjects at home, at work, and in other locations differed from each other in expected ways, providing evidence for discriminative validity. Modifications to the diary are suggested, and possible uses and limitations of the instrument are discussed.This research was supported by USUHS protocol RO7233 and a grant from the John D. and Catherine T. MacArthur Foundation. The opinions and assertions expressed herein are those of the authors and should not be construed as reflecting those of the USUHS or the Department of Defense.     

Measuring Customer Service Orientation: An Examination of the Validity of the Customer Service Profile

The construct of customer service is taking on an ever increasing level of importance in today's global economy. Organizations need a way to identify those individuals who have the demeanor to effectively serve the public. The present study discusses the development and validation of a personality-based instrument which organizations can use to select high-quality service providers. Multiple converging sources of validity are discussed. Specifically, the authors collected validity evidence using customer related (vs. supervisor) ratings, an area relatively neglected in the service literature. Evidence suggests that customer ratings are viable and an important criterion for use in the validation of customer service instruments. Implications of these findings are discussed in terms of both workplace intervention and future research.     

Dispositional resistance to change and emotional exhaustion: moderating effects at the work-unit level

Organizational change, although essential for business success, may negatively impact employees’ well-being. Based on person–environment fit theory, the authors investigate employees’ dispositional resistance to change as it impacts emotional exhaustion. Furthermore, the authors examine boundary conditions that may affect dispositional resistance to change and its influence on emotional exhaustion. They take a trait activation approach and test the moderating roles of two work-unit-level internal contextual factors: perceived organizational support and informational team climate. Using a longitudinal research design of 709 participants in 30 work units, multilevel analyses reveal that dispositional resistance to change (time 1) is positively related to emotional exhaustion (time 2). Moreover, a lack of perceived organizational support and a high informational team climate strengthen these effects. The authors conclude that organizations should offer coaching and training programmes to cope with organizational change for employees who are highly change resistant. Furthermore, personal and organizational development strategies should consider the insights gained from the study regarding internal contextual factors that moderate change management processes.     

Withholding Effort in Organizations: Toward Development and Validation of a Measure

Field research into the topic of withholding effort and its variants (shirking, loafing, free riding, and job neglect) has been limited due to a lack of measures that are applicable to organizational settings. This study used a multi-phase process to ascertain a measure of withholding effort that can be used in organizational settings. Items were generated through literature review and discussions with practitioners; culled by the authors; and tested in a field study in multiple, diverse organizations. Exploratory and confirmatory factor analyses found the construct of withholding effort to be multidimensional, but not necessarily as previous theoretical work in the area would suggest. Correlations of the various dimensions of withholding effort scales with existing scales tapping a wide range of employee attitudes were consistent with a priori expectations. Implications for the use of these scales in future workplace research and their practical application in organizations are discussed.     

HONESTY TESTING FOR PERSONNEL SELECTION: A REVIEW AND CRITIQUE

Paper and pencil predictors of employee theft are described and studies of validity, reliability, and adverse impact of these tests are examined. Validity studies for 10 tests were grouped into 5 categories: comparisons with polygraph examination results, correlations with admissions of past theft, predictive studies using future job behaviors as criteria, comparisons of shrinkage rates before and after the introduction of a testing program, and comparisons of test scores of groups known to be dishonest with groups representing the general population. While positive correlations were consistently found, a variety of methodological differences between studies were identified which make the direct comparison of test validities suspect. High reliabilities are consistently reported, and test score comparisons by race and sex generally report no differences. Ethical issues in honesty test usage are considered and future research needs are identified.     

Examining the impact of unscorable item responses on the validity and interpretability of MMPI-2/MMPI-2-RF Restructured Clinical (RC) Scale scores

This article examined the impact of unscorable item responses on the psychometric validity and practical interpretability of scores on the Restructured Clinical (RC) Scales of the Minnesota Multiphasic Personality Inventory-2/Minnesota Multiphasic Personality Inventory-2-Restructured Form (MMPI-2/MMPI-2-RF). In analyses conducted with five archival samples, we found that relatively large proportions of unscorable responses (defined as 10% or more of the items scored on a scale) were relatively uncommon, occurring most often in forensic samples. Simulated unscorable responses were inserted in varying proportions (10% to 90%) in place of the responses of participants in two of the archival samples for which criterion data were available. Analyses were conducted to gauge the impact of unscorable responses on the criterion validity of scores on these scales and their interpretability. Impact on validity was evaluated by examining correlations with extra-test variables as a function of increasing levels of unscorable responding. Interpretability was evaluated by examining the proportion of participants who produced clinically elevated RC Scale scores as a function of unscorable responding. Results indicate that whereas scale score validity was relatively robust up to a level of 50% unscorable responses, interpretability was substantially compromised at only 10% unscorable responding. This suggests that prorated scores may be used to correct for the impact of unscorable responses on the interpretability of RC Scale scores at levels as high as 50% unscorable responses. Classification analyses supported this possibility. Further steps needed to explore the feasibility of using prorated scores are discussed.     

Employee Perceptions of Workplace Theft Behavior: A Study Among Supermarket Retail Employees in Malaysia

Employee theft is costly to any business, especially to big retail chain organizations. This research is to study the perception of retail employees on the impact of the individual and organizational factors contributing to workplace theft behavior in supermarkets in Malaysia and to study the mediating effect of intention to steal and the moderating effect of internal control systems. The results proved that individual and organizational factors do influence workplace theft behavior. It is also established that internal control systems moderate the relationship between the intention to steal and workplace theft behavior.     

Evidence of construct validity of the interest scales on the Campbell Interest and Skill Survey

This study explored evidence of the construct validity of the interest scales on the Campbell Interest and Skill Survey (CISS; Campbell, Hyne, & Nilsen, 1992) by testing evidence for convergent validity with the Strong Interest Inventory (SII; Hansen & Campbell, 1985). Two hypotheses were formulated. First, matching CISS and SII scales were expected to be more positively correlated compared to non-matching scales. Second, Holland's hexagonal calculus assumption (Holland, 1973) was expected to emerge in the pattern of intercorrelations among CISS and SII scales. These hypotheses were tested using correlational and factor analyses. Results supported the hypotheses and demonstrated evidence of good convergent and construct validity for scores on the CISS interest scales. Implications for the use of the CISS in counseling and for research on Holland's theory are discussed, and directions for future research are presented.     

Assessing the Effectiveness of Integrity Tests: A Review

Integrity tests, and other methods of assessing "honesty," are widely used in pre-employment screening, as most employers want to minimize dishonest and counterproductive behavior among their employees. This review applies a structured framework to the research literature to assess the general effectiveness of integrity tests. The framework employed evaluates integrity tests in terms of their scope, accuracy (reliability), relevance (validity), fairness, acceptability, and practicality. Such a framework based on these six aspects allows for an objective and systematic analysis of the qualities of integrity tests, as well as a structure for the evaluation of other methods of assessing honesty and integrity. For both narrow, overt measures of integrity and broader personality-based measures, research has shown favorable evidence of reliability, validity, fairness, and practicality. Even though in terms of acceptability research has indicated that integrity tests are viewed neither positively nor negatively, there is still considerable debate surrounding the issues of false positive rates and labeling. Comparisons with other methods of assessing honesty and integrity are also reviewed.     

Relationship Between Work Performance and Personality Traits in Hong Kong Organizational Settings

Four hundred and thirty‐seven employees from four Hong Kong organizations completed the Traditional Chinese versions of the Fifteen Factor Personality Questionnaire Plus (15FQ+) and the Cross‐Cultural Personality Assessment Inventory (CPAI‐2) (indigenous scales) and provided objective and memory‐based recent performance appraisal scores. A number of significant bivariate correlations were found between personality and performance scores. Hierarchical multiple regression analyses revealed that a number of the scales from the 15FQ+ contributed to significantly predicting four of the performance competency dimensions, but that the CPAI‐2 indigenous scales contributed no incremental validity in performance prediction over and above the 15FQ+. Results are discussed in the light of previous research and a call made for continued research to further develop and increase the reliability of the Chinese instruments used in the study and to enable generalization of the findings with confidence.