Unit 3: Learning Objectives

Question 1

Students will be able to describe the basic purpose of human resource management.

Answer 1

The Basic purpose of HR is to find the right people, at the right place, at the right time, with the right training. In addition, we want a retention policy that is integrated into the company policy, and keeps these people in place.

In addition, HR is interested in evaluating and rewarding the performers. Studies show that the best are 3 times better than the worst employees. We must also be willing to take extreme actions, when necessary, of separating employees who do not fit into the strategic goals.

Question 2

Students will be able to determine when an employee is an asset and when he or she is a cost.

Answer 2

Employees must create more value than they cost. If they don’t, the company will cease to exist. Therefore, we have to see employees as sources of income for the company, rather than sources of expense. This means that an empty desk is actually costing the company money because there is no one in it creating value.

Generally speaking, employees are considered an asset when they:

1. Have a valuable skill.
   2. Are difficult to replace. 

A hamburger flipper, for example, may not necessarily be considered an asset. They are easy to train and easy to replace.

Question 3

Students will be able to explain when we hire for the organization and when we hire for the company.

Answer 3

To staff for the job, we need to know what the job is. The most common way to determine this is by a job description. A job description generally lists activities that the incumbent in the job must perform. For example, the job description of a hamburger flipper would say “flips hamburgers.”

Staffing for the organization means looking at the entire organization. When hiring, you don’t just hire somebody to do the job for which they are immediately needed. When hiring, you look beyond the skills needed for the specific job, and look for qualities that will make the employee a long-term success in the organization. In theory, you hire as if each person you hire could become the CEO of the company.

Question 4

In which circumstances is it better to hire for the organization than for the job?

Answer 4

Ask yourself the following questions:

Are you treating the employee as a cost or an asset?

What is the corporate environment?  For example, does the company hire managers from 	the outside or promote from within?  

What is the level of technical expertise needed to do the job? Is it critical for success?  	Can it be learned on the job?

How different are the skills needed to be a manager and a regular employee? 

What is the market situation?  Is the market mature or changing?

Question 5

Students will be able to describe alpha and beta hiring errors and when each occurs.

Answer 5

If you make an alpha-error, you simply fire the employee. If your company has a probationary period, this can be without cause. It is uncomfortable, but it can be done. If you make a beta-error, you will never see the candidate again, so you are left with no recourse.

In addition, since this employee is skilled (and you didn’t realize it), they can go to your competitor and give them the value they would have provided you. If we understand that employees are assets (not expenses) then we see that this is far more important than alpha-error.

Question 6

Students will be able to explain “criterion-based hiring.”

Answer 6

This is an algorithm for the PROCESS of hiring. It focuses on the job and not the person

Step 1. What is the job?
What are the criteria for success?
How do you know when an employee is successful?
If you have successful employees, what makes them successful?

Step 2:  Recruiting
	How do the job criteria influence your recruiting?
	Where do you recruit?
	How do you recruit?
	Willy Sutton on robbing banks.

Step 3. Selecting
Criterion Based selection—how do you find the best person?
Empirical testing.
Do what is necessary to find the right one.

Step 4.  Integration
	Probationary period—why good, and why bad?
	Corporate Citizenship—indoctrination.
	Job skills—training.
	Education is not training.

Step 5. Career ladder
Tracks—Peter Principle, The Dilbert Principle.
Facilitation—education support.
Career planning.

Question 7

Students will be able to understand and explain the elements of the “Five Test.”

Answer 7

“The Five Test”:

Does the process have:

1. Reliability: Does your hiring system measure everybody the same way every time?
2. Validity: Does your hiring system measure the things it is intended to measure?
3. Utility: Is your hiring system cost effective?
4. Legality: Is the system legal? Is the system fair? Does your hiring procedure contain any unanticipated biases that may eliminate certain groups or classes of people?
5. Acceptability: Do the applicants see it as fair?

Question 8

Students will be able to explain the various methods used in selection of employees and how effective each is.

Answer 8

The interview. This is probably the most frequently used instrument for hiring

Testing: Testing can be effective, BUT Testing can be prejudicial.

References. You have to have them, right

Biographical Information. This is otherwise known as the “application form.” Relying too heavily on this form can be a source of bias.

Educational transcripts or training documentation. Transcripts serve a very useful purpose.

Patterned Interviews. In a patterned interview, an interviewer, or groups of interviewers ask all candidates the same questions

Role Playing

Assessment Centers. Assessment centers are a combination of all of the above

Question 9

Students will be able to explain “criterion-based training.”

Answer 9

Criterion based training tests and assessments are designed to measure student performance against a fixed set of predetermined criteria or learning standards

1. Define job skills needed for success
2. Measure current skill levels
3. Select training methods (classroom, OJT, outside programs, etc.)
4. Measure results
5. Re-evaluate new skill needs.

Question 10

Students will be able to discuss the elements of an effective employee evaluation system.

Answer 10

1. How the system will be used (rewards, compensation, promotions, training, punishment, employee development, feedback for improvement)
   
   2. Who evaluates (immediate supervisor, team)
   3. What is evaluated (behaviors, outcomes, traits)
   4. How to evaluate (absolute [forced rankings], relative)
   5. Means of evaluation (scales, narratives, critical incidents, objectives-based)