Eastern Financial Company recently experienced a corporate restructuring. Because some new jobs were added and some old jobs eliminated, many job responsibilities changed. HR hired an Organizational Development (OD) consultant, Joe, to help moderate the various changes in the corporate structure.

Because of the restructuring, the selection criteria used in the past needed to be updated. Joe recommended additional selection measures and planned to conduct some validation studies of the old and new selection criteria. Depending on the results of these validation studies, he recommended eliminating or revising some of the selection methods used.

1) How would Joe determine the base rate of successful employees at the company?

2) Based on your view of predictive validity, how do you think Joe would demonstrate that the old and new selection criteria at Eastern Financial Company predict job performance after the corporate restructuring? What steps would Joe need to take to do this?

3) Based on your view of concurrent validity, when would it be useful to study the concurrent validity of a measure? Should Joe try to demonstrate concurrent validity?

4) When restructuring, what does Joe need to keep in mind in order to avoid charges of discrimination when employees are settled into new positions?