You are here

Applied Psychology in Talent Management

Applied Psychology in Talent Management

Eighth Edition

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

A good introduction to personnel psychology that follows the principles of the scientist-practitioner model well.

Dr Sandra Costa
Management School, Liverpool University
January 24, 2022

I'll be using this in my Personnel Selection graduate course, thanks!

Afra Ahmad
Psychology Dept, George Mason University
August 26, 2019

This book is an eloquent piece of teaching for business students in the human resource field. As me, Professors and lecturers could find it a good resource for teaching. It provides good explanations and tasks to complement the understanding of each specific topic.

Mr Juan David Pelaez leon
Business Administration, Universidad Del Valle (US BU)
May 1, 2020

For instructors

Purchasing options

Please select a format:

ISBN: 9781506375915

SAGE Knowledge is the ultimate social sciences digital library for students, researchers, and faculty. Hosting more than 4,400 titles, it includes an expansive range of SAGE eBook and eReference content, including scholarly monographs, reference works, handbooks, series, professional development titles, and more.

The platform allows researchers to cross-search and seamlessly access a wide breadth of must-have SAGE book and reference content from one source.

SAGE Knowledge brings together high-quality content from across our imprints, including CQ Press and Corwin titles.