MEASUREMENT ERROR IN RESEARCH ON HUMAN RESOURCES and FIRM PERFORMANCE: HOW MUCH ERROR IS THERE AND HOW DOES IT INFLUENCE EFFECT SIZE ESTIMATES?

Studies of the relationship between human resource (HR) practices and firm performance typically use a single respondent to assess firm level HR practices or HR effectiveness. However, previous research in other substantive areas suggests that rater differences are a potentially important source of measurement error. We demonstrate analytically the potential consequences of both random and systematic measurement error in research on HR and firm performance. However, our main focus is on random error and we show how generalizability theory can be applied to obtain better estimates of reliability by simultaneously recognizing multiple sources (e.g., items, raters) of random measurement error. These more inclusive reliability estimates, in turn, offer the possibility of more precisely quantifying substantive relationships in the HR and firm performance literature. In our sample, reliabilities (as estimated by generalizability coefficients) for single-rater assessments of HR variables were generally below .50. This degree of measurement error, if present in substantive studies on HR and firm performance, could lead to considerable bias, given that an unstandardized regression coefficient is corrected for measurement error in the independent variable by dividing by its reliability coefficient (not its square root). We also found only limited convergent validity between HR and line managers ratings of a second type of HR measure, HR effectiveness. In general, our findings suggest that future researchers need to devote greater attention to measurement error and construct validity issues. Our study provides an example of how generalizability theory can be useful in this pursuit.     

Problem Solving,Stress, and Coping in Adolescent Suicide Attempts

Twenty adolescents who had made suicide attempts were compared with 20 nonpsychiatric control subjects on measures of problem solving, stress, and coping. The suicidal group did not show evidence of “rigid” thinking or of deficits in the ability to generate solutions to standardized interpersonal problems. However, they did report recent histories of more severe life stress and had inaccurate appraisal of the extent to which stressful events could be controlled. Although suicidal patients were able to generate as many adaptive strategies as control subjects for coping with their own most severe recent real-life stressor, they actually used fewer. They were also more likely to identify maladaptive behaviors as ways of coping. These findings support a transactional model of adolescent suicidal behavior, whereby inaccuracies in the appraisal aspects of problem solving (but not in the solution-generation aspects) in the face of high life stress lead to a reduction in the use of adaptive efforts to cope.