HRM_Quiz #2

Created by Wilda58 

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81 terms

Reliability

the consistency of a performance measure; the degree to which a performance measure is free from random error.

Validity

The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. (a measuring tool that assesses the true aspect of a job performance)

Validity - The performance measure

• Criterion-Related
• Concurrent
• Predictive
• Content validity

Criterion-Related

A method of establishing the validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores.

Concurrent

A criterion-related validity study in which a test is administered to all the people currently in a job and then incumbents' scores are correlated with existing measures of their performance on the job.

Predictive

A criterion-related validity study that seeks to establish an empirical relationship between applicants' test scores and their eventual performance on the job.

Content validity

A test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situation or problems that occur on the job.

Generalizability

The degree to which the validity of a selection method established in one context extends to other contexts.

Training

A planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

Development

The acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in client and customer demands.

Performance management

The means through which managers ensure that employees' activities and outputs are congruent with organization's goals.

Performance feedback

The process of providing employees information regarding their performance effectiveness.

Performance appraisal

The process through which an organization gets information on how well an employee is doing his or her job.

Performance planning and evaluation (PPE) system:

Any system that seeks to tie the formal performance appraisal process to the company's strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy.

Job evaluation

An administrative procedure used to measure internal job worth.

Forecasting

The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor shortages or surpluses.

Forecasting:
• Supply

Internal movements caused by transfers, promotions, turnover, retirements, etc. (Use a transitional matrix—shows the movement of ees in dif job categories over time); Useful for AA/EEO purposes.

Forecasting:
• Demand

Derived from product/service demanded; external in nature. (Use a leading indicator objective measure that accurately predicts future labor demand).

Reliability

The consistency of a performance measure; the degree to which a performance measure is free from random error. (Measuring instrument, e.g., ruler vs. a visual guess).

Validity

The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance.

Three validation methods - Validity has been established when:

Criterion-related validity-
• Two varieties of Criterion-related validity:
• Predictive Validation
• Concurrent Validation

Criterion-related validity

When there is substantial correlation between test scores and job-performance scores.

Two varieties of Criterion-related validity

• Predictive Validation
• Concurrent Validation

Predictive Validation

Seeks to establish an empirical relationship between test scores taken prior to being hired and eventual performance on the job.

Concurrent Validation

Assesses the validity of a test by administering it to people already on the job and then correlating test scores with existing measures of each person's performance.

Other criteria for selection methods:

• Generalizability
• Utility
• Legality

Generalizability

The degree to which the validity of a selection method established in one context extends to other contexts.

Utility

The degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in real organizations.

Legality

The final standard that any selection method should adhere to.

MBTI

A psychological test used for team building and leadership development that identifies employees' preferences for energy, information gathering, decision making, and lifestyle.

360-degree feedback

A performance appraisal process for managers that includes evaluation from a wide range of persons who interact with the manager. The process includes self-evaluations as well as evaluations from the manager's boss, subordinates, peers and customers.

BAR- Behaviorally Anchored Rating Scale (BARS) -

Designed to specifically define performance dimensions by developing behavioral anchors associated w/ diff levels of performance (after experts agree on large # same selection, these are used as anchors to guide the rater).
o Strengths - Can increase interrater reliability by providing precise & complete definition of performance dimension.
o Weaknesses - Can be bias b/c of info recall— due to behavior close to anchor will mostly be recalled; Manager & ee do not make distinction betw BARS & trait scale.

Purposes of performance management

• Strategic - should link employee activities with Org's goals
o Implemented through: defining results, behaviors, & employee characteristics necessary to carry out strategy.
o Talent management: identify employees' strength & weaknesses, link employee to training & development activities, & reward good performance with pay or other incentives.
o People Development System (PDS) - Designed ensure learning & devlpment align w/ bus strategy, drive bus results, employee have right skills to succeed in current & future job.
• Administrative - (in particular, performance appraisal) use in decisions for salary administration—pay raises, promotions, retention—termination, layoffs, & recognition of individual performance.
• Developmental - develop employee who are effective at their jobs, seeks to improve their performance, feedback given often pinpoints to employee's weaknesses—identifies deficient aspects of performance and causes of these, e.g., skills deficiency, motivational problem, other obstacles holding employee back.

Determine Labor surplus or shortage

Once demand and supply forecasts are known, planer can compare the figures to be sure whether there will be a surplus or shortage for the respective job categories.

Surplus - Options for reducing expected labor surplus (Option, speed, human suffering).

(Option, speed, human suffering).
1. Downsizing, fast, high
2. Pay reductions, fast, high
3. Demotions, fast, high
4. Transfers, fast, moderate
5. Work sharing, fast, moderate
6. Hiring freeze, slow, low
7. Natural attrition, slow, low
8. Early retirement, slow, low
9. Retraining, slow, low

Shortage - Options for reducing expected labor shortage (Option, speed, human suffering).

(Option, speed, human suffering).
1. Overtime, fast, high
2. Temporary employees, fast, high
3. Outsourcing, fast, high
4. Retrained transfers, slow, high
5. Turnover reductions, slow, moderate
6. New external hires, slow, low
7. Technological innovation, slow, low

• Behavioral Observation Scale (BOS) - Developed from Critical incidents.

Developed from Critical incidents.
o Diff in 2 ways: Does not discard some of the large # of behaviors, instead, uses many to spec define all behavior necessary in effective performance; Manager rates frequency ee has exhibited each behavior during rating period—then % for an overall rating.
o Weaknesses - May require more info than managers can process or remember—can have 80 or more behaviors.

o Content validation - criterion-related

criterion-related—a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job
o Useful for small sample sizes
o Limitations: applicant must have skill/knowledge, not good for jobs that rely on the job learning, must minimize interference b/c judgment is selective

Types of selection methods:
• Interviews
• To increase utility: .
• References, Biological Data & Application Banks:
• Physical ability tests:
• Cognitive ability tests:
• Personality inventories:
• Work samples:
• Honesty & drug tests:

• Interviews: a dialogue initiated by one or more persons to gather information and evaluate the qualification of an applicant for employment. Most widespread method used.
o Can be unreliable, low in validity, and biased against different groups
• To increase utility: HR staff should keep interview structured, standardized and goals focused, and should have structured note taking system, use multiple interviewers, consider videotaping, ask situational interview questions (which have high predictive validity). This is effective for assessing sensitive issues like honesty & integrity.
• References, Biological Data & Application Banks:
o Reference issues: people pick those that will say good things about them, people that are giving references fear that giving damaging info will come back to haunt them. Background checks are a little more effective.
• Physical ability tests:
o Seven classes: muscular tension, muscular power, muscular endurance, cardiovascular endurance, flexibility, balance & coordination
o Must prove that these are essential to performing the job.
• Cognitive ability tests: Tests that include three dimensions: verbal comprehension, quantitative ability, and reasoning ability. Ex: Wonderlic test. Downside is that typically have adverse impact on some minority groups.
• Personality inventories: categorizes individual by what they are like. Use the Big Five: Adjustment, conscientiousness, extroversion, agreeableness, inquisitiveness
o Conscientiousness is the only one that has real predictive validity across situations.
• Work samples: Observes how an applicant does in a simulated job. Ex: Google code jam. Other places to observe this are assessment centers.
• Honesty & drug tests: Faking bias is actually not an issue with honesty tests and drug tests have been called in to question b/c of invasion to privacy.

Main findings from "Workforce USA" Watson Wyatt study on
performance management and "line of sight"

• Good performance management creates "line of sight" from Org's strategy to ee's pay
• Transmission or middleman is performance management
• Company strategy all the way to ee
• Employee activities & outputs = Org's goals—way to measure performance
• Business case - What revenue did Org create w/ same amount of capital—surplus value created
• Tobin's Q - a measure of intangible value
o Measures a company's ability to create value
o Numerator measures cash flows the Org is expected to generate over the life time of its assets
o Denominator represents the costs of assets it will need to generate those returns
o Q of 1 indicates a company will earn just enough to replace its assets while any value above 1 indicates the firm will be able to replace its assets & generate additional

Types of selection methods:

• To increase utility:

HR staff should keep interview structured, standardized and goals focused, and should have structured note taking system, use multiple interviewers, consider videotaping, ask situational interview questions (which have high predictive validity). This is effective for assessing sensitive issues like honesty & integrity.

• Strategic Purposes of Management

should link employee activities with Org's goals
o Implemented through: defining results, behaviors, & employee characteristics necessary to carry out strategy.
o Talent management: identify employees' strength & weaknesses, link employee to training & development activities, & reward good performance with pay or other incentives.
o People Development System (PDS) - Designed ensure learning & devlpment align w/ bus strategy, drive bus results, employee have right skills to succeed in current & future job.

• Administrative Purposes of Management

(in particular, performance appraisal) use in decisions for salary administration—pay raises, promotions, retention—termination, layoffs, & recognition of individual performance.

• Developmental Purposes of Management

develop employee who are effective at their jobs, seeks to improve their performance, feedback given often pinpoints to employee's weaknesses—identifies deficient aspects of performance and causes of these, e.g., skills deficiency, motivational problem, other obstacles holding employee back.

Effective Performance Management Systems:

Effective Performance Management Systems:
• Measure performance criteria (behaviors) as precisely as possible.
• Serve a strategic function by linking performance criteria to internal & external customer requirements.
• Include a process for changing the system based on situational constrains (e.g., Org Culture, economic conditions).
• Have administrative & developmental purposes

Performance planning and evaluation (PPE) system:

Performance planning and evaluation (PPE) system: Any system that seeks to tie the formal performance appraisal process to the company's strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy.

o Critical Success Factors (CSFs) -

o Critical Success Factors (CSFs) - (measures of performance management systems) factors in a company bus strategy that give it a competitive advantage. E.g., Hewlett-Packard, FedEx, Coke.

• Return on investment (ROI) - To calculate ROI, do the following:

• Return on investment (ROI) - To calculate ROI, do the following:
o Identify outcomes, i.e., quality, incidents
o Place value on the outcomes
o Determine the change in performance after eliminating other potential influences on training results
o Obtain an annual amount of benefits (operational results) from training by comparing results after training to results before training (in $$).
o Determine the training costs (direct cost + indirect cost + development cost + overhead cost + compensation for trainees)
o Calculate the total savings by subtracting the training costs from benefits (operational results)
o Calculate the ROI by dividing benefits (operational results) by costs. The ROI gives an estimate of the $$ return expected from each $$ invested in training.

• Evaluation design of trainings:

• Evaluation design of trainings: ¬There is no one appropriate evaluation design—some factors need to be considered.
o Size of training program
o Purpose of training program
o Implications if a training program does not work
o Company norms reg evaluations
o Cost of designing & conducting an evaluation
o Need for speed in obtaining program effectiveness info
• Pros -
• Cons - Programs using can be costly & time consuming;

• Reasons for evaluating trainings:

• Reasons for evaluating trainings:
o To identify program's strengths & weaknesses—is program meeting learning objective, quality of learning environment & whether transfer of training to the job is happening.
o Access if content, Org, & Admin of program—schedule, accommodations, trainers & materials contribute to learning & the use of training on the job.
o Identify which trainees benefited most or least from program
o Gather marking data by surveying participants about whether they would recommend program, their level of satisfaction.
o To determine $$ benefits & cost of programs.
o Compare cost & benefits of trainings to non-training investments.

Ensuring transfer of training
• Transfer of Training:

• Transfer of Training: The use of knowledge, skills, and behaviors learned in training on the job. Influenced by:
o climate for transfer: trainee's perceptions about a wide variety of characteristics of the work environment that facilitate or inhibit used of trained skills of behavior.
o manager support: degree to which manager emphasize importance of attending training and stress application of training concepts
o peer support: support network: two or more trainees who agree to meet and discuss their progress using learned capabilities on the job
o opportunity to use learned capabilities: extend to which trainee is given or seeks opportunities to perform learned skills & abilities
o technology support
o self-management skills

Key steps in training process (needs assessment through evaluation)

1. Needs Assessment
2. Ensuring ee's readiness for training
3. Creating a learning environment
4. Ensuring transfer of training
5. Selecting training methods
6. Evaluating training programs

High-leverage training strategy, esp. high-leverage training:
• High-leverage training:

Training practice that links training to strategic business goals & objectives, has top management support, relies on an instructional design model, and is benchmarked to other programs in organizations. Helps create situation for continuous learning, where employees understand the entire work process & expect them to acquire new skills, apply them on the job, & share what they have learned w/ others.
• Emphasis on HLT has been accompanied by movement to link training to performance improvement or business strategy

High-leverage training strategy, esp. high-leverage training:

• Business strategy ==>
o Strategic Training & Development Initiatives ==>
o Training & Development Activities ==>
o Metrics that Show Value of Training

• Business strategy (Mission, Values, Goals) ==>
o Strategic Training & Development Initiatives (Div the learning portfolio, Improve customer service, speed ee learning, capture & share knowledge) ==>
o Training & Development Activities(web-based training, make development planning mandatory, develop web sites for knowledge sharing, increase amt of customer participation) ==>
o Metrics that Show Value of Training (Learning, performance improvement, reduced customer complaints, reduced turnover, employee satisfaction).

Distinction between distributional errors:
• Leniency -
• Severity -
• Halo
o Horns

• Leniency - Occurs when rater assigns high (lenient) ratings to all ees. Strictness occurs when manager give low rating to all ees—i.e. holds ees to unreasonable standards. Central tendency reflects that a manager rates all ees in the middle of the scale.
o Cons - makes it hard to distinguish betw ees rated by same person; Create problems in comparing performance of ee's rated by different raters.
• Severity -
• Halo & Horns - Failure to distinguish among different aspects of performance; Do not make distinction betw strong & weak.
o Halo - Occurs when one + performance aspect causes the rater to rate all other aspects of performance +; leads ee to believe no aspects of their performance need improvement.
o Horns - One (-) aspect results in the rater giving low ratings to all other aspects; make ee frustrated & defensive.

Rater errors in performance management:
• Similar to Me - .
• Contrast
• Distributional
• Halo & Horns -
• Appraisal politics -

• Similar to Me - when we judge those similar to us more highly than those who are not—can be discriminatory.
• Contrast - when we compare ees with one another instead of against an objective standard.
• Distributional - The result of a rater's tendency to use only one part of the rating scale.
• Halo & Horns - Refer to failure to distinguish among different aspects of performance; Do not make distinction betw strong & weak.
• Appraisal politics - A situation in which evaluators purposefully distort ratings to achieve personal or company goals.

Approaches to measuring performance (competitive, attribute, behavior, results, quality) & key strength & weaknesses of each:
• Comparative -
• Alteration Ranking
• Forced distribution Ranking -
• Paired comparison
• Attribute Approach
• Mixed standard scale
• Behavioral Approach
• Organizational Behavioral Modification (OBM)
• Results Approach
• Quality -

• Comparative - Requires the rater to compare an individual's performance with that of others (uses some overall assessment of individual's performance or worth & seeks to develop some ranking of individual within a work group).
o 3 Techniques:
• Simple Ranking - Requires managers to rank ee within their depts from high performer to poorer.
• Alteration Ranking- Manager looks at list of ees deciding who is the best ee, & crossing that person's name off the list—from remaining names, manager crosses off worst ee, and so forth.
 Strengths - Talent management/ee development
 Weaknesses - Validity can be questioned—courts implications—case of Albermarle v. Moody—No way of knowing what criteria of job performance was considered by all managers.
• Forced distribution Ranking - (uses ranking format, but ee are ranked in groups) requires manager to put certain % of ees into predetermined categories—GM's Jack Welch—asked every yr to identify & remove bottom 10% of workforce—forces Managers to .
 Strengths - Distinguishes betw ees & avoids entitlement mentality for pay, rewards, & development activities. with ees. Help align company, ee, & compensation performance; help tailor development for under performers—can improve Org's potential performance of workforce.
 Weaknesses - forces Managers to select some ees, even when above % to be "Not acceptable"—Managers won't always do that; system may be illegal & cause poor morale, affecting teamwork, recruiting—bottom group is usually minority—women, men over 40yrs—leading to discrimination.
• Paired comparison - Requires managers to compare every ee w/ every other ee in the work group, giving an ee a score of 1 every time he is considered the high performer—once all have been compared, manager tallies the # of X each ee received favorable decision, which becomes ee's performance score.
 Strengths - Differentiate ee's performance—eliminating problems of leniency, central tendency & strictness; use to make Admin decisions reg pay raises & promotions; system is easy to develop, use and widely accepted by users.
 Weaknesses - Lacks specificity for feedback purposes—ee doesn't know what to do diff to improve; ees & managers may not accept eval based on comparison; time consuming, especially if many ees. E.g., Manager has 10 ees, then (10 x 9/2) = 45 comparisons).
• Attribute Approach - Extent to which ees have certain attributes (traits—initiative, leadership & competitiveness) believed desirable for the Org's success—on which ees are evaluated.
o Strengths
o Weaknesses
• Graphic rating scale - (most common form) list of traits evaluated by 5-pt. rating scale—[discrete scale—# of dif pts, or continuous scale—manger places ].
 Strengths -
 Weaknesses - E.g, Brito v. Zia case—Spanish-speaking ees were terminated based on appraisal—based on quality of work, job knowledge, etc. Court said Zia needed to provide empirical data to prove their point—called it subjective appraisals.
• Mixed standard scale - Developed to get around graphic scale problems—define relevant performance dimensions then create statement representing good, %, & poor PM for each dimension—these are later mixed w/ statements of other dimensions [ee's rated on (+), (0) & (-)]—now used for behavioral ratings to eliminate errors in PA.
 Strengths - Easy to develop, can be used w/ various jobs, can be reliable & valid as more measurement techniques.
 Weaknesses - Little congruence betw technique & Org's strategy; do not support Org's goals; creates for ee to be defensive when receiving feedback—does not tell ee how to improve.
• Behavioral Approach: Attempts to define the behaviors ee must exhibit to be effective in the job. Evaluation - Can be effective—links Org's strategy to specific behavior necessary for implementing that strategy; provide guidance & feedback. Weakness - Has to do w/ Org context of system—consistently monitored, revised for focus & assumes that there is "one best way" to do the job.
o Critical Incident - Requires Managers to keep records of specific examples of effective & ineffective performance on the part of each ee.
• Strengths - Give ee feedback about what ee does well or poorly; tied to Org's strategy by focusing on incident that best support strategy.
• Weaknesses - Managers resist having to keep daily/wkly log of their ee behavior; hard to compare ee since incidents are specific to each ee.
• Organizational Behavioral Modification (OBM) - Managing the behaviors of ees through formal system of behavioral feedback & reinforcement—ee's future behavior is determined by past one that has been + reinforced
o 4 Techniques: Define key behavior for job performance; Use measure to see if behavior is exhibited; Manger shares info w/ ee to reinforce behavior or set goals for these; & Feedback is provided to ee.
• Strengths - Used in variety of settings; Increase of ee performance in record keeping
• Results Approach - Managing the objective, measureable results of a job or work group—subjectivity can be eliminated to have closer indicator of one's contribution liked to Org effectiveness.
o Management by Objective (MBO) - popular in private & public Orgs—Original "manager's letter" from firm Booz, Allen & Hamilton—concept was for ee to write letter to manager reg performance goal & how to achieve them in coming yr. Process is top-down to reach Org's strategic goals—ee performance will be evaluated on standards of these goals. 3 common Component—specific, diff & objective goal.
• Strengths - Major findings—68 out of 70 studies productive gains; 2 showed loses; Increase productivity, Org's performance;
• Weaknesses
• Quality - Improving customer satisfaction is the primary goal (Customer Orientation & Preventive approach to errors)
• Strengths - Emphasize assessment of person & system factors in measurement system; Managers & ee work together to solve performance problems; Involve internal & external customer in setting standards & setting performance; Use multiple sources to evaluate person & system factors (Characteristics of effective appraisal system).
• Weaknesses - Existing systems measure performance in terms of quantity, not quality; ee held accountable for good or bad results; Orgs do not share $$ rewards w/ ee according to how much ee contributed; Rewards not connected to bus results.

Criteria for performance measure:
• Strategic Congruence
• Validity (Content) -
• Reliability
o Acceptability
• Specificity -

• Strategic Congruence - The extent to which a performance management system elicits job performance that is congruent with the org's strategy, goals, & culture.
• Validity (Content) - The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. (a measuring tool that assesses the true aspect of a job performance—to be valid cannot be deficient or contaminated).
• Reliability - The consistency of a performance measure; the degree to which a performance measure is free from random error.
o Interrater Reliability - The consistency among the individuals who evaluate the employee's performance. (Performance Measure has interrater reliability if 2 individuals give the same [or close to same] evaluations of a person's job performance).
o Internal Consistency Reliability - The extent to which all the items rated are internally consistent.
o Test-retest Reliability - measurement reliable over time (E.g., scale—results should be same every time, if not it lacks test-retest reliability).
o Acceptability - Extent to which a performance measure is deemed to be satisfactory or adequate by those who use it (affected by extent employees believe the PMS is fair).
• 3 categories of perceived fairness:
 Procedural (development) - To ensure fairness use consistent standards when evaluating employee.
 Interpersonal (use) - provide feedback in atmosphere of respect & courtesy.
 Outcome fairness (outcomes) - Communicate expectations reg performance evaluations & standards.
• Specificity - Extent to which PM gives detailed guidance to employees about what is expected of them & how they can meet these expectations (relevant to strategy & development PM—measure must specify what employee must do to achieve strategic goal—if not, Org will not achieve its strategic purpose).

• Strategic Congruence

The extent to which a performance management system elicits job performance that is congruent with the org's strategy, goals, & culture.

Criteria for performance measure:
• Validity (Content)

• Validity (Content) - The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance. (a measuring tool that assesses the true aspect of a job performance—to be valid cannot be deficient or contaminated).

Criteria for performance measure:

• Reliability

The consistency of a performance measure; the degree to which a performance measure is free from random error.
o Interrater Reliability - The consistency among the individuals who evaluate the employee's performance. (Performance Measure has interrater reliability if 2 individuals give the same [or close to same] evaluations of a person's job performance).
o Internal Consistency Reliability - The extent to which all the items rated are internally consistent.
o Test-retest Reliability - measurement reliable over time (E.g., scale—results should be same every time, if not it lacks test-retest reliability).
o Acceptability - Extent to which a performance measure is deemed to be satisfactory or adequate by those who use it (affected by extent employees believe the PMS is fair).
• 3 categories of perceived fairness:
 Procedural (development) - To ensure fairness use consistent standards when evaluating employee.
 Interpersonal (use) - provide feedback in atmosphere of respect & courtesy.
 Outcome fairness (outcomes) - Communicate expectations reg performance evaluations & standards.

Criteria for performance measure:

• Specificity

Extent to which PM gives detailed guidance to employees about what is expected of them & how they can meet these expectations (relevant to strategy & development PM—measure must specify what employee must do to achieve strategic goal—if not, Org will not achieve its strategic purpose).

• Competency:

a core behavior that distinguishes outstanding from typical performers. Usually represented by a name like "trusted advisor." A description in a short paragraph follows, then behaviors listed below that show proficiency level. Above and beyond all of the functional things you know. Silent on skills, a set of behaviors.

Main findings from "Workforce USA" Watson Wyatt study on
performance management and "line of sight"
• Tobin's Q - a measure of intangible value

a measure of intangible value
o Measures a company's ability to create value
o Numerator measures cash flows the Org is expected to generate over the life time of its assets
o Denominator represents the costs of assets it will need to generate those returns
o Q of 1 indicates a company will earn just enough to replace its assets while any value above 1 indicates the firm will be able to replace its assets & generate additional

Types of selection methods:
• Interviews:

a dialogue initiated by one or more persons to gather information and evaluate the qualification of an applicant for employment. Most widespread method used.
o Can be unreliable, low in validity, and biased against different groups

Types of selection methods:

• References, Biological Data & Application Banks:

o Reference issues: people pick those that will say good things about them, people that are giving references fear that giving damaging info will come back to haunt them. Background checks are a little more effective.

Types of selection methods:
• Physical ability tests:

o Seven classes: muscular tension, muscular power, muscular endurance, cardiovascular endurance, flexibility, balance & coordination
o Must prove that these are essential to performing the job.

• Cognitive ability tests:

Tests that include three dimensions: verbal comprehension, quantitative ability, and reasoning ability. Ex: Wonderlic test. Downside is that typically have adverse impact on some minority groups.

o

Types of selection methods:
• Personality

categorizes individual by what they are like. Use the Big Five: Adjustment, conscientiousness, extroversion, agreeableness, inquisitiveness
o Conscientiousness is the only one that has real predictive validity across situations.

Types of selection methods:
• Work samples: Observes how an applicant does in a simulated job. Ex: Google code jam. Other places to observe this are assessment centers.

• Work samples: Observes how an applicant does in a simulated job. Ex: Google code jam. Other places to observe this are assessment centers.

Types of selection methods:
• Honesty & drug tests:

Faking bias is actually not an issue with honesty tests and drug tests have been called in to question b/c of invasion to privacy.

Correlation coefficients - .

a measure of the degree to which two sets of numbers are related. Expresses the strength of the relationship in numerical form. Perfect positive correlation is +1, perfect negative is -1.

Distinguishing between low / high correlation scatterplots:

• If there were a perfect 1.0 correlation, the plot would show a straight line at a 45-degree angle
• If correlation is .5, the straight line will have less of 45-degree slope
• No correlation, coefficient = 0, there is no line that can be drawn, just scattered data

• Compare Utility -

is more on the O-Psych side (Utility of test increases as selection ratios get lower, so long selection recruiting & tests are not excessive.
o Competitive advantage—the higher the # of applicants from which to select.
o Company A—Selection ratio is high—fewer applicants for same jobs;
o Company B—Selection ratio is low—2x as many applicants for same jobs; people selected here have higher amount of extraversion than those of company A; Takes better advantage of relationship betw extraversion & sales.

Evaluation of training (reasons, evaluation designs and their pros/cons, return on investment (ROI) - Companies want to Gain competitive advantage

• Cognitive Outcomes - Acquisition of knowledge; pencil & paper test, Work Samples.
• Skills-based Outcomes - Behavior, Skills, Motivation; Observation, Ratings, Interviews
• Affective Outcomes - Reaction to program, Attitudes; Focus groups, attitude surveys, Observation
• Results - Company payoff; Data from info system or performance records
• Return on Investment - Economic value of Training; Identification & comparison of costs & benefits of the program.

• Transitional matrix:

Shows the proportion (or number) of employees in different job categories at different times. Typically these matrices show how people move in one year from one state (outside the organization) or job category to another state or job category.

• Downsizing -

The planned elimination of large # of personnel designed to enhance organizational competitiveness.
o Pros: Need to reduce costs; reduced need for labor due to technological changes; merger & acquisitions reduce bureaucratic overhead; firms change (location) where they do business.
o Cons: long-term effects can be negative, leading to loss of talent, and disrupts social networks needed to promote creativity & flexibility; sometimes Orgs let go of people who turn out to be irreplaceable assets; employees who survive the purge become narrow-minded, self-absorbed, and risk averse.

• Outsourcing:

o Steps for successful outsourcing: choose a bigger and older vendor, don't offshore work that is proprietary or requires tight security, start small and monitor the work closely.

• Temp hiring, etc.

o Pros: frees org for admin tasks and financial burdens associated with being the "employer of record;" small companies that can't afford testing programs get employees who have been tested by a temp agency; temp agencies train employees before sending them to employers, reducing training costs and eases transition; temp worker brings a fresh perspective to org's problems.
o Cons: tension b/t temp and full-time employees. To make this work, org must make sure that it has bottomed out in terms of down-sizing efforts, upswing in demands for labor should be first met by expansion of overtime granted to core full-time employees, hire "nonthreatening" temps, i.e., those who are not necessarily trying to stay.

• Altering Pay & Hours:

o Pros: employees enjoy the extra money
o Cons: Overtime, stress and frustration from being overworked.
o Other option is to cut hours or pay, employees are often glad just to keep their job

• Early Retirement Programs & Buyouts:

o Older workers sometimes more costly, sometimes prevent hiring or block the advancement of younger workers. For these reasons, some Org start early retirement incentive plans, or phased retirement plans

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