Manpower Planning and Resourcing

Q.I Discuss the components and ranges of Manpower Planning

A. 1. The first essential component in manpower is its development. This component
involves optimal development of human resources through formal and informal
educations and creation of congenial conditions for rising technical, managerial,
Economics and other skills. Arousing of public enthusiasm or development of
motivation is also an essential part of manpower development.
Then come towards manpower utilization. This stage involves optimal and effective
utilization of various categories of manpower classified on the basis of education
and sex. The development manpower turns from a stock into a flow as a consequence
of proper utilization.
Next component is manpower forecasting. The future demand of manpower along their
essential characteristics is lorecast using relevant statistical techniques. The
various methods used are: through conduct ofjitys and seeking the opinion of
employers; the use of incremental labor- output ratio; density quotient method
that estimates the number of people required to do a certain job in an efficient
manner; Productivity change method and lastly through international comparisons.
Matching of manpower supply with manpower demand; this phase involves matching
manpower supplies with manpower demand keeping in view the nature of manpower
requirements and its characteristics. This takes us into the orbit of policy
action. Last component is provision of productive and gainful employment. It
involves provision of productive and gainful employment to the new entrants in the
job market.

Q.2Write a note on human resource value accounting.

A.2 Human is the core factor and which is required to be recognized prior to any
other ‘M’s But till now an urgent need based modification is required while
identifying and measuring data about human resources. In this paper my objective
is to identify the extensive use of Lev & Schwartz model of Human resource
accounting, in spite of several criticized from various sides regarding its
applicability. Further more, it also portrays the applicability in wide variety of
organization of such model (some pubic sector units and IT based sector).
Human is the buzzword in the modem knowledge based society. It is the most vital
input on which the success & failure of the organization very much depend upon.
Starting from the classical economist to modern human capital economist such
development in considered being a continuous process.
It is one of the most important ‘M’ associated, which is considered while taken
care of 4M’s associated with any organization and they are money machines.
Materials and men. However, the most interesting thing is that the first three are
recognized and find a place in the assets side of the Balance sheet of the
organization. However, in case of fourth one ambiguity prevails among the
accountant. In spite of its usefulness has been acclaimed is various literature
over the decades but its application still remain a suspectable issue, the IASB
and the ASB in different countries have not been able to formulate any specific
accounting standard for measurement & reporting of such valuable elements.
It is a popular phenomenon among the Indian corporate world is to disclose
information relating to human resource in annual statements. In this context, it
is necessary to conduct a study to assess the disclosure pattern of HRA
information in Indian corporate World.
It first promulgated by BHEL (Bharat Heavy Electrical Ltd), a leading public
enterprise, during the financial year 1972-73. Later other leading public and
private sector Organization in the subsequent years also adopted it. Some of them
are Hindustan Machine Tools Ltd. (HMTL). Oil and Natural Gas Corporation Ltd.
(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,(MRL),
Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL).
However, adaptability of various models (mainly Lev and Schwartz model, Flamholtz
model and Jaggi and Lev model) and discount rate fixation and disclosure pattern
Ic. Either age wise, skill wise etc in BHEL, SAIL, MMTC (Minerals & Metals Trading
Corporation Of India Ltd.) HMTL, NIP make it clear, that there has been no
uniformity among Indian enterprises regarding HRA disclosure.
Meaning of Human Resource Accounting:
HRA has been defined by American Accounting Association’s committee —“HRA is the
process of identifying & measuring data about human resources & communicating this
information to interested parties”. Stephen knauf defined HRA as “The measurement
& quantification of human organizational inputs such as recruiting, training,
experience & commitment.”
According to Eric. G flamholtz HRA represents-”Accounting for people as an
organizational resource. It is the measurement of the cost & value of people for
the organization”.
Hence, it can be said that, it is the process of developing financial assessment
for people within organization & society & monitoring of these assessment through
time, it deals with.
Although HR valuation has important implication for external financial reporting,
in the contemporary economic scenario valuing HR has been greater significance for
internal HRM decision.
Problem Statement:
Understanding the way of valuation of human resources by using Lev & Schwartz
model and how valuation of such asset are related with the other financial
variables for financial reporting purpose.
Research Objectives:
The main objectives of the study are:
i) To asses the way of presenting HRA information in the financial statement by
selected companies
ii) To identify’ HRA methods and models (mainly the extensive use of Lev &
Schwartz model) which are used to arrive at human resource value.
iii) How human resource are related with the other accounting variables for human
financial reporting in selected companies.
The ways of presentation of HRA information disclosed
by some of the companies
Name of the HRA introduce
Model Discount
organization in the
year rate (in%)
BHEL 1973 — 74 Lev & Schwartz model 12
SAIL 1983 — 84 Lev & Schwartz model with 14
Some refinements as suggested by Eric.G.
Flamholtz& Jaggi and Lev
MMTC 1982 — 83 Lev & Schwartz model 12
ONGC 1981 — 82 Lev & Schwartz model
12.25

NTPC 1984 — 85 Lev & Schwartz model 12

INFOSYS 1999 Lev & Schwartz model 12.96
2006-07 Lev & Schwartz model 14.97
Source: Secondary
PRODUCTIVITY & PFRFORMANCF INDICATORS
RRJTA RR VA HR VAt HR PTIHR KR’ VA uRN. .1
ri.ployen
MIEL / -.
SALt - - - - -
I I I I I I
ONGC - - - -
N11’C I - - -
flffDSYS - - - I I I —
Source: Secondary
Terminology used:
1) PBT-Proflt Before Tax
2) HR- Human Resource
3) TA-Total Assets
4) Turn-Turnover ( or Sales)
5) FA-Fixed Assets
6) VA- Value Added
Models of Human Capital Valuation
Many models have been created to value human capital. Some are based on historic
costs while some are based on future earnings. But each has its own limitations
and one model has proved to be more valid than other. Although the Lev and
Schwartz model has been the most widely use model for its ease of use &
convenience.
The Lev & Schwortz Model
The Lev and Schwartz model states that the human resource of a co is the summation
of value of all the Net present value (NPV) of expenditure on employees. The human
capital embodied in a person of age r is the present value of his earning from
employment
Under this model, the following steps are adopted to determine HR Value.
i) Classification of the entire labor force into certain homogeneous groups like
skilled, unskilled, semiskilled etc. and in accordance with different classed and
age wise.eg. In Infosys the classification is based on software professionals &
support staff etc.
ii) Construction of average earning stream for each group.eg. At Infosys
Incremental earnings based on group! age have been considered.
iii) Discounting the average earnings at a predetermined rate in order to get
present value of human resource’s of each group.
iv) Aggregation of the present value of different groups which represent the
capitalized future earnings of the concern as a whole,
1(t)
vr=
(L-+ r)
Where, V, = the value of an Individual r years old
1(t) = the individual’s annual earnings up to retirement
t retirement age
r = a discount rate specific to the cost of capital to the company.
Critical appraisal of the Lev & Schwartz, wdel: —
1] It is essentially an input measure .it ignores the output i.e. productivity of
employees.
2] Service state of each individual employee is not considered.
3] The training expenses incurred by the company on its employees are not
considered.
4] The attrition rate in organization is also ignored.
5] Factors responsible for higher earning potentiality of each individual
employees like seniority, bargaining capacity, skill, experience etc. that may
cause differential salary structure are also ignore.
Conclusion
The conceptual thinking about valuation human resources is still in a developing
stage. The accounting bodies all over the world accept no model of HR accounting.
However, still we find some application of Lev & Schwartz model is most public
sector units and IT based sectors. En knowledge based sectors where human
resources are considered the key elements for monitoring the business activities
to attend their goals successfully, may not overlooked this side. Hence, the
government along with that should take considering the great significance of HRA
proper initiation
Other professional & accounting bodies both at the national & international
levels for the measurement & reporting of such valuable assets.
Q.3 Write a note on Individual and Organizational knowledge conversion process.
A.3 the definition of knowledge as the understanding gained from experience, and
applied to new situations, ties knowledge closely to the individual. This implies
that the term organizational knowledge is a mere metaphor to denote the aggregate
knowledge of an organization’s employees. After all, an organization cannot have a
brain or a memory to have knowledge. However, if an organization’s knowledge is
merely the aggregate knowledge and brainpower of its employees, then how do we
classify organizational behavioral patterns reflected in databases, records, and
hundreds of practices and operations? What about the wisdom gleaned from the
organizations past experiences and transactions, and the insight gained from
contact (relationships and networks) with customers, suppliers, and possibly
competitors? However, all these resources have been created and are still
maintained by individual employees, a considerable part of them remains with the
organization after employees leave at the end of the day.
There is no doubt that the knowledge of a newly established organization with few
members is that of its employees. But as organizations grow in size and life span,
organizational knowledge takes other forms as well. As the organization grows, its
knowledge base surpasses the knowledge of its individual members, to include
experiences and behavioral routines that develop because of the application of
knowledge to an insurmountable number of settings. These behavioral patterns and
routines have stored in them past experiences, and hence knowledge or wisdom, that
affect the organization’s modals operandi and the way it responds to the changing
environment.
In addition to these routines and practices, an organization has a wealth of in
formation resources that it collected and codified through the years. This
represents the informational platform, which the employees process to produce more
knowledge. Hence is part of the organizational knowledge base. The value of
information databases lies in their potential to facilitate the generation of new
knowledge by employees and thus should be based on their learning needs and the
competencies that the organization plans to develop. That is why knowledge
managers refer it to as the knowledge base, since it provides the basic knowledge
resources that an employee needs to advance on the learning curve. The interaction
between the individual knowledge and the various forms of organizational
knowledge, and the conversion from one form to the other, is what creates value in
an organization.
However, like the information/knowledge interface, it is hard to determine with
any precision when individual knowledge ends and organizational knowledge begins.
This is because of the complex nature of knowledge. Human and organizational
behavior. To clarify the matter, KM practitioners
Tacit Explicit
Tacit to Tacit Explicit to Tacit
Socialization Internalization
Tacit to Explicit to
Externalization Explicit
EXHIBIT 5.1 Tacit/Explicit Knowledge Conversions
created the concept of tacit/explicit knowledge, which incorporates both
dichotomies (information/knowledge and individual/organizational knowledge) in a
manner that enables an organization to understand the knowledge and value creation
process.
Under the tacit/explicit distinction, explicit knowledge includes all that can be
codified or expressed in documents, manuals, and databases. Tacit knowledge. On
the other hand, encompasses all that cannot be clearly articulated but is the real
source of knowledge and the basis of decision-making. En addition to experience,
skills, and competence, tacit knowledge includes intuition and things that the
employee “just knows.” The most efficient and effective way to pass this knowledge
is through personal contact. To enable effective decision-making. KM practitioners
search for ways by which an organization can locate, externalize, and capture the
tacit knowledge of its employees. Once captured. The tacit knowledge is converted
into explicit knowledge, by being codified, and later shared. However, other
individual/organizational or tacitlexplicit knowledge conversions take place as
well.
Nonaka and Takeuchil4 explain that there are four modes of knowledge conversions
based on the tacit explicit concept. As illustrated in Exhibit 5.1. First.
Knowledge can be converted from tacit to tacit through mentoring, apprenticeship,
and other forms of personal contact (i.e. socialization). Second, knowledge can be
converted from tacit to explicit when the individual articulates the basis of her
or his decision and thus conveys Knowledge (i.e. externalization). Then there is
the internalization of knowledge wherein explicit is transferred to tacit
knowledge when the employee learns from the organization’s codified knowledge
(reports, manuals. etc). Finally, explicit is transferred to other explicit
knowledge where documents or information arc shared and added to the
organizational information database.
These fotlr modes of knowledge conversions on the individual/organizational
interface and the informational knowledge conversion in the human brain arc what
KM tries to boost to maximize value creation. Misunderstanding of these knowledge
relations and conversions lies at the heart of so many failed KM initiatives. It
is important to note that KM is not only about implementing a number of solutions
to minimize organizational memory loss, prevent the brain drain, and supplement IT
tools, though many organizations use it just for this purpose. Using it
restrictively limits the potential of KM in advancing the whole organization on
its journey to become a learning organization. British Petroleum proved that by
implementing a robust KM program whereby the whole organization was transformed to
a “big brain,” boosting its overall performance extensively and pulling it from
the brink of bankruptcy.15
KNOWLEDGE MANAGEMENT - A MEANS TO AN END
The ability of an organization to learn, accumulate knowledge from its
experiences, and reapply this knowledge is itself a skill or a competence that,
beyond the core competencies directly related to delivering its product or
service, may provide strategic advantage.
- Michael Zack, Northeastern University Professor 15
The competence to generate knowledge resources, being deeply embedded in the
organization’s practices, routines, and brainpower of its people, can hardly be
imitated by competition, and hence can be the source of sustainable competitive
performance. Consequently, the ability to manage knowledge effectively becomes a
critical organizational competence for achieving the organizational mission. It is
the ability to recognize the availability of knowledge resources within the whole
organization, develop them through transfer, and deploy and redeploy them to meet
strategic objectives.
To develop KM as a core competence, a number of changes are needed at both the
strategic and operational levels. On the strategic level, a shift in the
organizational vision is necessary if the organization is to get on the road to
becoming a knowledge/learning organization. For leadership to steer the
organization in that direction, the organization should envision itself as a
knowledge machine or a big brain. To manage knowledge effectively, however,
leadership’s commitment alone is not sufficient. Two things are needed at the
strategic level to implement KM - (I) applying a gap analysis, also known as a
knowledge audit, to the organizational knowledge resources to ascertain what the
organization knows and needs to know; and (2) adopting the knowledge strategies
that will enable the organization to meet its goals or mission, taking into
account the strengths and weaknesses of its knowledge resources.
On the operational level, many changes need to be implemented that affect the
structure of the organization, including the IT infrastructure, its culture, the
use of practices and tools, and the job design. These changes will be discussed
next.
Q.l Explain demand forecasting in detail.
A.1 Demand forecasting is the activity of estimating the quantity of a product or
service that consumers will purchase. Demand forecasting involves techniques
including both informal methods, such as educated guesses, and quantitative
methods, such as the use of historical sales data or current data from test
markets. Demand forecasting may be used in making pricing decisions, in assessing
future capacity requirements, or in making decisions on whether to enter a new
market.
Necessity for forecasting demand
Often forecasting demand is confused with forecasting sales. However, failing to
forecast demand ignores two important phenomena. There is a lot of debate in the
demand planning literature as how to measure and represent historical demand,
since the historical demand forms the basis of forecasting. Should us USC the
history of outbound shipments or customer orders or a combination of the two to
proxy for demand.

Stock effects
The effects that inventory levels have on sales. In the extreme case of stock-
outs, demand coming into your store is not converted to sales due to a lack of
availability. Demand is also untapped when sales for an item are decreased due to
a poor display location, or because the desired sizes are no longer available. For
example, when a consumer electronics retailer does not display a particular flat-
screen TV, sales for that model are typically lower than the sales for models on
display. In addition, in fashion retailing, once the stock level of a particular
sweater falls to the point where standard sizes are no longer available, sales of
that item are diminished.

Market response effect

The effect of market events that are within and beyond a retailer’s control.
Demand for an item will likely rise if a competitor increases the price or if you
promote the item in your weekly circular. The resulting sales increase reflects a
change in demand because of consumers responding to stimuli that potentially drive
additional sales. Regardless of the stimuli, these forces need to be factored into
planning and managed within the demand forecast.
In this case, demand forecasting uses techniques in causal modeling. Demand
forecast modeling considers the size of the market and the dynamics of market
share versus competitors and its effect on firm demand over a period. In the
manufacturer to retailer model, promotional events are an important causal factor
in influencing demand. These promotions can be modeled with intervention models or
use a consensus process to aggregate intelligence using internal collaboration
with the Sales and Marketing functions.

Methods
No demand forecasting method is 100% accurate. Combined forecasts improve accuracy
and reduce the likelihood of large enors.
Methods that rely on qualitative assessment
Forecasting demand based on expert opinion. Some of the types in this method are.
• Unaided judgment
• Prediction market
• Delphi technique
• Game theory
• Judgmental bootstrapping
• Simulated interaction
• Intentions and expectations surveys
• Conjoint analysis
Methods that rely on quantitative data
• Discrete Event Simulation
• Extrapolation
• Quantitative analogies
• Rule-based forecasting
• Neural networks
• Data milling
• Causal models
• Segmentation

Q.2 Discuss the various attraction strategies

A.2 Whenever I meet with a manager or broker to discuss their growth plans and
objectives. I always ask what their talent attraction strategy is. I often get a
blank or somewhat confused look. Most brokers and managers are former agents and
one thing we are not known for is our diligent business planning and strategizing.
Therefore, it is no surprise that we carry that trait over into our growth plans
when we become managers or brokers.
Here are some questions I ask to get them thinking:
• what is your target incremental GCI goal this year from new agents added to your
company?
• How many agents will you have to attract in order to reach that target?
• What methods are you using to generate inquiries from candidates considering a
career in real estate and those already licensed?
• How will you effectively respond, qualify and follow up with these inquiries?
• Do you have a talent attraction presentation that is customizable to the
candidate and their concerns and interests?
• What strategies do you use to target and contact existing agents from other
companies?
• Does your value proposition differentiate between Baby Boomers, Gen X and Gen Y
candidates?
• What plans do you have in place to train and develop new agents?
• How quickly will a new agent in your office make their first transaction
(listing or sale)? How long has it historically taken other new agents?
Knowing the answers to these questions should help anyone in charge of attracting
talent to their real estate office begin to formulate a strategy and plan.
You may have noticed that I have not used the word “recruit” up until this point.
We have purposely chosen to remove that word from our vocabulary and replace it
with “talent attraction”. I’ll explain more in a future blog.
Fashion people live for being ahead of the curve, spotting emerging trends and
being knowledgeable before anyone else knows it. As the Fall/Winter 2007/08
Fashion week at Bryant Park in New York City drew to a close in early February, 1
wondered what are the parallels that can be drawn between life trends and fashion
trends? Does what we choose to wear reflect who we are, who we want to be or what
we would like to be doing? How much of what we do really speaks to our true
passions and soul’s purpose?
Today, there is a trend toward going deeper and seeking work that is meaningful
and answers the question. “What am I here for?” Many are reviewing what their
definition of success really means. For some the outward symbols of success are
just veneer. True success comes from the inside out from living one’s life from a
place of imagination and purpose. Though they can make the trip enjoyable, fame or
a corner office, a public persona or a closet full of designer goodies may not be
enough to sustain us through life’s journey.
How many of us have made choices that have left us feeling empty, asking the
question. “Is that all there is?” Ever notice when you feel drained and droopy,
just going through the motions, feeling stuck? That loss of power is often a
message something just is not quite right. These “messages” if ignored tend to
grow louder and more frequent until something occurs, forcing us to pay attention
and make a change. What if we get to the top of the hill and discover it was not
what we wanted after all? What next?
Alternatively, if your work is satisfying but the rest of your life is totally out
of control and you have no time for yourself, you family, or friends? You want to
take time for your life but haven’t even got time for lunch.
Whatever is going on in your life, you will get a fresh perspective with the
guidance of a professional coach, which could be just the jumpstart you need. In
just one session, you will notice something has shifted.
Professional coaches are trained to use hundreds of skills to guide you to create
the life you want and have graduated from an International Coach Federation
accredited program such as: Coach University, Coaches Training Institute or the
NYU Executive Coaching Program to name a few. Coaches work in partnership with
you.
Working with a coach means you are ready and able to focus on creating an
extraordinary life.
One of the most frequent questions is, “What is the difference between a coach,
consultant and a therapist?” Coaches arc neither consultants nor therapists.
Therapists and consultants are often seen as experts in their fields.
Therapy focuses on healing wounds from the past. Professional coaching is not a
substitute for therapy and a professional coach does not work on therapy related
issues. If emotional pain or distress is present, then a therapist would be
recommended. Professional coaching clients have worked through and accepted their
pasts, and are ready to concentrate on creating an exceptional future in the
present.
Consultants are focused on results, and are hired to produce a certain outcome.
Consultants are often authorities in a particular field and advise their clients
how to solve specific problems.
Professional coaches are focused on people and connections, and are hired to
support the client as he or she achieves a desired outcome. Coaches guide clients
to their own solutions vs. consultants who are hired to make recommendations.
Coaches and clients have a peer relationship. An expert coach has been trained to
connect with the client, listen deeply, observe, assess, support and guide. An
expert coach works with clients to help them focus on that which matters most and
to be accountable to take the actions required for their success.
Are you ready to find out what’s next for you? Do you want to have a life that
fits who you are? Do you want more life balance, a better job, a new relationship
or to improve an old one? Is there a project you’ve wanted to work on or a
business idea you were hatching? Do you want to start an exercise program or get a
complete life makeover? Working with one of the professional coaches may just be
the thing you are seeking. A coach can help you to accelerate the process, improve
your performance and be more fulfilled in every area of your life. Coaches work
with clients via telephone, making it easy to get started and convenient to
arrange. Portable too!
Working with a coach you might just start something that will fit you like a
glove.
Nancy Mendes is a Coach University trained professional Attraction Coach who has
helped hundreds of clients since 2000. She works with women who want to be
audacious and bold, live rich, play big and do well. She has been an executive in
corporate America at such companies as Merrill Lynch, Elizabeth Arden and The
Fashion Group International. Her Audacious Confidence groups really help clients
to ramp up their attraction quotient so they can play a bigger, more profitable
and audacious game

Q.3Explain the types of validity.

A.3 In psychology, validity has two distinct fields of application. The first
involves L validity, a concept that has evolved with the field of psychometrics:
“Validity refers to the degree to which evidence and theory support the
interpretations of test scores entailed by proposed uses of tests”. The second
involves research design. Here the term refers to the degree to which a study
supports the intended conclusion drawn from the results. In the Campbellian
tradition, this refers to the degree of support for the conclusion that the causal
variable caused the effect.
In contrast to test validity, assessment of the validity of a research design
generally does not involve data collection or statistical analysis but rather
evaluation of the design in relation to the desired conclusion on the basis of
prevailing standards and theory of research design.

Test validity
Reliability and validity an early definition of test validity identified it with
the degree of correlation between the test and a criterion. Under this definition,
one can show that reliability of the test and the criterion places an upper limit
on the possible correlation between them (the so-called validity coefficient).
Intuitively, this reflects the fact that reliability involves freedom from random
error and random errors do not correlate with one another. Thus, the less random
error in the variables, the higher the possible correlation between them. Under
these definitions, a test cannot have high validity unless it also has high
reliability. However, the concept of validity has expanded substantially beyond
this early definition and the classical relationship between reliability and
validity need not hold for alternative conceptions of reliability and validity.
Within classical test theory. Predictive or concurrent validity (correlation
between the predictor and the predicted) cannot exceed the square root of the
correlation between two versions of the same measure — that is, reliability limits
validity.

Construct validity
Evidence involves the empirical and theoretical support for the interpretation of
the construct. Such lines of evidence include statistical analyses of the internal
structure of the test including the relationships between responses to different
test items. They also include relationships between the test and measures of other
constructs. As currently understood, construct validity is not distinct from the
support for the substantive theory of the construct that the test is designed to
measure. As such, experiments designed to reveal aspects of the causal role of the
construct also contribute to construct validity evidence.

Content validity
Evidence involves the degree to which the content of the test matches a content
domain associated with the construct. For example, a test of the ability to add
two-digit numbers should cover the full range of combinations of digits. A test
with only one-digit numbers, or only even numbers, would not have good coverage of
the content domain. Content related evidence typically involves subject matter
experts (SME’s) evaluating test items against the test specifications.

Criterion
Validity evidence involves the correlation between the test and a criterion
variable (or variables) taken as representative of the construct. For example,
employee selection tests are often validated against measures of job performance.
Measures of risk of recidivism among those convicted of a crime can be validated
against measures of recidivism. If the test data and criterion data are collected
at the same time, this is referred to as concurrent validity evidence, lithe test
data is collected first in order to predict criterion data collected at a later
point in time, and then this is referred to as predictive validity evidence.

Construct validity
Construct validity refers to the totality of evidence about whether a particular
operationalization of a construct adequately represents what is intended by
theoretical account of the construct being measured. (Demonstrate an element is
valid by relating it to another element that is supposedly valid.)
 There are two approaches to construct validity- sometimes referred to as
‘convergent validity’ and ‘divergent validity’ (or discriminant validity).

Convergent validity
Convergent validity refers to the degree to which a measure is correlated with
other measures that it is theoretically predicted to correlate with.
Discriminant validity
Discriminant validity describes the degree to which the operationalization does
not correlate with other operationalization that it theoretically should not be
correlated with.
Content validity
Content validity is a non-statistical type of validity that involves “the
systematic examination of the test content to determine whether it covers a
representative sample of the behavior domain to be measured” (Anastasia & Urbana,
1997 p. 114).
A test has content validity built into it by careful selection of which items to
include (Anastasia & Urbana. 1997). Items are chosen so that they comply with the
test specification, which is drawn up through a thorough examination of the
subject domain. Fox craft et al. (2004. p. 49) note that by using a panel of
experts to review the test specifications and the selection of items the content
validity of a test can be improved. The experts will be able to review the items
and comment on whether the items cover a representative sample of the behavior
domain.

Representation validity
Representation validity is also known as translation validity.

Face validity
Face validity is an estimate of whether a test appears to measure a certain
criterion; it does not guarantee that the test actually measures phenomena in that
domain. Indeed, when a test is subject to faking (malingering), low face validity
might make the test more valid.
Face validity is very closely related to content validity. While content validity
depends on a theoretical basis for assuming if a test is assessing all domains of
a certain criterion (e.g. does assessing addition skills yield in a good measure
for mathematical skills. To answer this you have to know, what different kinds of
arithmetic skills mathematical skills include) face validity relates to whether a
test appears to be a good measure or not. This judgment is made on the “face” of
the test, thus it can also be judged by the amateur.

Criterion validity
Criterion-related validity reflects the success of measures Isled for prediction
or estimation. There are two types of criterion-related validity: Concurrent and
predictive validity. A good example of criterion-related validity is in the
validation of employee selection tests; in this case scores on a lest or battery
of tests is correlated with employee performance scores.

Concurrent validity
Concurrent validity refers to the
correlates with other measures of
time. Going back to the selection
administered to current employees
performance reviews.
degree to which the operationalization
the same construct that are measured at the same
test example. This would mean that the tests are
and then correlated with their scores on

Predictive validity
Predictive validity refers to the degree to which the operationalization can
predict (or correlate with) with other measures of the same construct that are
measured at some time in the future. Again, with the selection test example. This
would mean that the tests are administered to applicants, all applicants are
hired, their performance is reviewed at a later time, and then their scores on the
two measures are correlated.

Statistical conclusion validity

Campbell and Stanley (1963) define internal validity as the basic requirements for
an experiment to be interpretable — did the experiment make a difference in this
instance? External validity addresses the question of generalizability to whom can
we generalize this experiment’s findings?
Internal validity
internal validity is an inductive estimate of the degree to which conclusions
about causes of relations are likely lobe true, in view of the measures used the
research setting And the whole research design. Good experimental techniques in
which the effect of an independent variable on a dependent variable is studied
under highly controlled conditions, usually allow for higher degrees of internal
validity than, for example,
Single- case designs.
Eight extraneous variables can interfere with internal validity:
1. History, the specific events occurring between the first and second
measurements in addition to the experimental variables
2. Maturation, processes within the participants as a function of the passage of
time (not specific to particular events), e.g. Growing older, hungrier, More
tired, and so on.
3. Testing, the effects of taking a test upon the scores of a second testing.
4. Instrumentation, changes in calibration of a measurement tool or changes in the
observers or scorers may produce changes in the obtained measurements.
5. Statistical regression, operating where groups have been selected on the basis
of their extreme scores.
6. Selection, biases resulting from differential selection of respondents for the
companion groups.
7. Experimental mortality, or differential loss of respondents from the comparison
groups.
8. Selection-maturation interaction, etc. e.g. in multiple-group quasi-
experimental designs
Intentional validity
To what extent did the chosen constructs and measures adequately assess what the
study intended to study?

External validity
The issue of external validity concerns the question to what extent one may safely
generalize the (internally valid) causal inference (a) from the sample studied to
the defined target population and (b) to other populations (i.e. across time and
space).
Four factors jeopardizing external validity or representativeness are:
1. Reactive or interaction effect of testing, a pretest might increase the scores
on a posttest
2. Interaction effects of selection biases and the experimental variable.
3. Reactive effects of experimental arrangements, which would preclude
generalization about the effect of the experimental variable upon persons being
exposed to it in non-experimental settings
4. Multiple-treatment interference, where effects of earlier treatments are not
erasable.

Ecological validity
Ecological validity is whether the results can be applied to real life situations.
This issue is closely related to external validity and covers the question to
which degree your experimental findings mirror what you can observe in the real
world (ecology science of interaction between organism and its environment).
Typically, in science, there arc two domains of research: Passive-observational
and active experimental. The purpose of experimental designs is to test causality,
so that you can infer A causes B or B causes A. But sometimes, ethical and/or
mythological restrictions prevent you from conducting an experiment (e.g. how does
isolation influence a child’s cognitive functioning?) Then you can still do
research, but it’s not causal, it’s co relational, A occurs together with B. Both
techniques have their strengths and weaknesses. To get an experimental design you
have to control for all interfering variables. That’s why you conduct your
experiment in a laboratory setting. While gaining internal validity (excluding
interfering variables by keeping them constant) you lose ecological validity
because you establish an artificial lab setting.
On the other hand with observational research you can’t control for interfering
variables (low internal validity) but you can measure in the natural (ecological)
environment, thus at the place where behavior occurs.