MGHA12 FINAL

fully updated-ish (apr8)

Selection

the process of choosing individuals with relevant qualitifcations that can fill job openings

Selection process steps (7)

Complete application (resume), Interview with HR, Employment testing (aptitiude), Preliminary selection in HR dept (round one complete), supervisor/team interview, references & background check, hiring decision

Examples of selection tests

cognitive abilities 9SAT, GRE, GMAT, LSAT), motor skills, physical abilities, job knowledge tests, work samples, integrity, substance abuse

Quality of selection test

How well a test measures a candidates attributes & predicts their future performance.

2 qualities of the Quality of selection test

Reliability, same results over and over again and cross diff people at diff times. Validity, test measures what it claims to measure and predicts relevant behaviors.

3 test of reliability

test retest (same results over time), internal consistency (ensures the test measures one concept, known as cronbach’s alpha), inter-rater reliability (agreement/similarity between multiple raters on a scale of 0.0-1.0)

3 types of validity

content validity (covers all aspect of a job), construct validity (includes convergent and divergent, test correlates and test does not correlate respectively), criternion related validity (includes predictive and concurrent, predicts future sucess, aligns with current performance)

rational approaches to validity definition

focuses on making sure a test effectively measured what it’s meant to assess in a logical and relevant way, includes 4 key parts

4 types of rational approaches to validity

content validity, face validity, criterion validity, incremental validity

content validity is assesed by

SMEs, subject matter expers, ensures if the test measures the right things

face validity measures

measures if applicants think the test is relevant and appropriate, does it seem job related (reference to that vid of the guy getting tested 100x by his boss when applying to a new job)

criterion related validity

is there a relation between test scores and job performance?

2 types of criterion validity

predicitive, concurrent. predictive measures test scores, then job performance, concurrent does both at once

incremental validity

asks whether adding a new test could improve accuract of a selection method.

9 box grid definition

used to evaluate people and minimize errors in hiring and promotion by accurately predicting job performance.

4 types of selection errors

true positive, true negative, false positve, false negative

true positive explained

Ideal selection for a candidate, good exam scores mean good job performance

true negative meaning

true negative, an ideal rejected candidate, bad exam score means bad job performance

false positive meaning

you’d assume good exam = good performance, but these poeple got picked because of good scores and suck at their job

false negative meaning

you’d assume these candidates will do a bad job because they did bad on the exams, but they’re actually really good at the job.

impacts of false negative and positive

false positives are costly, we hire underperformeres based on a misleading indicator. false negatives are lost potential, we didn’t hire them based on a misleading indicator.

validity coefficients & their meanings

r>0.5, great predictor. 0.3<r<0.5, good predictor. r<0.3, not good predictor.

the goal of adding more predictors is to

increase r² in tests, examples include overlapping predictors = redundancy, or independant predictors which can be + or - correlated with the job

utility meaning

how much a selection process improves the minimum efficiency of an organization through better hiring decisions, better job performance prediction, better roi. high utility = positive impact on company

asa model

attention-selection-attrition model, explains how organizations shap workfoce through attraction, selection attrition. people apply to attractive organizations, selection means that individuals who fit job requirements and company culture is seletcted, attrition means people who dont fit eventually leave either voluntarily or unvoluntarity.

3 types of interviews

structured, unstructured, situational. also includes behavioral interviews

3 methods of interviewing someone

standard interview (1-1), sequential interview (many interviewers over days), pannel interviews (1 interview, multiple interviewers)

4 methods of making a hiring decision

clinical SME strategy (evaluate all info, make an overall judgement), statistical strategy (use a formila with predictors and hire whoever has the highets predicted performance), multiple hurdle approach (multiple predictors, pass one predictor and you move to the next, hire the person with the highest last score), banding (multiple predictors, people in a certain scoreset is equal).

Training

systemic accquisition of attitudes, concepts, knowledge, roles or skills that result in imporved performancfe at work

importance of training

improves performance, gives employees experience, it’s costly so it’s an investment of time and resources

types of training

orientation, on tje job, managerial, sales, exec, it, customer service, compliance, ethics, diversity

4 parts of strategic model of training

needs assesment, designing the program, implementation, evaluating training program.

methods of evaluating programs using 4 dimensions of validity

face validity, transfer validity, intraorganizational, interorganizational

performance management

an ongoing provess of reviewing a job’s performance overall

pm systems fail because of 3 things

performance criteria, procedures, feedback

performance criterion

an evaluation standard used to measure an employee level of performance

criterion defficiency

ignores key aspects of the job within the evaluation

criterion contamination

the evaluation includes irrelevant things to the job

Criterion relevance

includes exactly what you should measure wihtin the job evaluatoin. a bigger area = more relevant things and less stupid. a smaller area = more contaminated and defficient, not much to evaluate on that actually relates to the job

Subjective criteria

depends on rater, lower accuracy and usefulness bc of the uniqueness/level of subjectivity, better for soft skills evaluation, rater bias is present

objective criteria

verifiable by multiple users, usually quantitative, hard data prevents rater bias

components of basic performance measurement framework

1. employee goals have to align with overall company goals: ex, increase calls from 5 to 10 an hour = increase customer engagement via phone by 20%

2. behavioral expectations + standards set = clear guideliens for employees

3. ongoing performance feedback = not just annual, more than 1 time

4. performance apprisal by manager

5. formal review session = structured meeting to understand current progress and projected progress + future

6. hr decision making = data from steps 1-5 affects pay + promotion

2 purposes/types of a performance feedback

developmental vs. administrative

developmental feedback

(here’s how to improve) provives eprformance feedback, celebrates accomplishments, analyzes goals, looks into future steps throuhg individual and company training, allows employee feedback

administrative feedbck

(here’s how you performed) retention, layoffs, termination, promotion. finds ways to fix performance issues, evaluates training process + programs

types of performance reviews

manager/supervisor eval, self eval, suboordinate eval, employee eval of managers, team eval, customer/client eval, 360 degree eval

360 degree evaluations

feedback from everyone who’s involved w u: superiors, peers, subordinates etc, multuple sources, more comprehensive, less bias, mroe feedback

confirmation bias

the tendancy to focus on info that confirms their initial thoughts/biases ab a person. ex: manager thinks employee is lazy, so manager focuses on their misses deadliens and ignores their extra effprts to improve.

errors in performance management

halo/horn effect, distributional error, central tendency, leniency/strictness, temporal/recency, contrast, similar to me

halo effect

employee evaluations are all positive bc of one positive aspect of one person. ex: someone is very attractive, therefore they get very positive reveiws and can do no wrong, a form of bias.

horn effect

one negative thing = fully negative reviews, opposite of halo

distributional errors

how emplpyee performance ratings are spread across a team or organization, showcases simialarity of variety present in the ratings, includes bell curve, right and left skewed

bell curve

normal distirbutions, everyones sprt of avg, some otliers on high and low end (error of central tendency?)

right skewed

knwon as LENIENCY BIAS. eveyones rated super high which is why it’s condensed on the right side, theyre all above avg (bell)

left skewed

known as STRICTNESS BIAS. condensed on left side, more critical and majority arent meeting standarfs

contrast error

comparison between emplpyees, not emloyees to job standard

similar-to-me bias (homophily)

manager rates employee higher bc theyre similar via backgound, attitiudes, traits, etc. similarity dne competence however

other types of pr methods

trait methods, graphic rating scale, essay method, critical incident method, results based/objective goals, balanced scorecard

trait methods

focuses on perfornality traits or soft skills.

grpahic rating scale

numeric scale rating 1-5 for competencies

essay method

manager writes narrative summary ab emplpyees performance

critical icnidenth method

focuses on extreme and specific examples of good/bad behavior.

results based/objective goals

kpis, more qualtifiable data focused

balanced scorecrd

evaluates performance scross financial, customer, internal processes, learning +growth

Conducting Performance Review Meetings, methods of giving feedback

tell-sell, tell-listen, problem solving

tell-sell

manger communicates feedback, persuades employee to accept it

tell-listen

manager shares feedback + listens to employee pov

problem solving

both work tg to create action plan focusion on solitions not js criticism

management by objectives (mbo)

goal based review process, employees are rates on pre set objectives thats decuided w employee and manager.

behavior observation scale (bos)

rates employees on specific observable behaviors, not traits, rated on a frequency scale.

3 types of compensation

direct, indirect, nonfinancial

challenges to strategic compensation

firm policies/practices, compensation options available, level of equity within compensation system

2 theories relating to employee motivation and compensation

equity & expectancy theory

equity theory

employee oerception that compensaiton = value of work performed

expectancy theory

increase employee effort = increased value in reward

2 methods of establishing base pay rates

establishing internal and external equity

internal equity (focuses on internal organizationla pay)

job eval, similar jobs = similar pay

external equity (focuses on comparison to outsiders/competitors)

wage/salary survey, wage curves (mathematical/grpahical model that sets midpoint pay for a paygrade absed on amrket info/benchmarking)

job evaluation system

determines worth of jobs in the organization to establish an approach to payment

methods of job evaluation systems

job ranking, classifucation, point system

job ranking

ranks jobs based on raters pov of the importance of job

job classification system

jobs are classified and grouped according to predetrmined wage grades

point system/method definition + steps

assigning points to each job, more points = more relevance, implied to have higher pay, needs a point manual to assign points.

1. determine clusters of jobs to be eval

2. colelct job info

3. select and define factors that can be compensated (skill, effort, responsibility, working condition)

4. define factor degrees (bachelors, masters)

5. determine factor weights

6. assign points to factors and degrees

example: HR assistant, BSc (75), supervision of teams (60)=135 vs. HR Manager, MSc (100), supervision of depts (90) = 190. 100-150 = grade 1, 150-200 = grade 2 pay

pay structures

hourly, daily, salaried, piecework

the pay mix

refers to how orgaanization structures total employee compensation (ex: base, comission, benefits, etc). takes into consideration of internal (ex: job worth) and external factors (ex: cost of living, benchmarking) related to compensatino that make up the pay mix.

draw what a pay grade structure looks like and explain it

dots = employees, rectangles = paygrades, range for max and mins in each grade, axis pay vs points

types of market pay lines

match line = matches competitiors good balance of competitiveness and budget, lead line = higher then market attrtacts talent increases costs, lag line = lower then market saves money but risky turnover

3 ways of determining pay increases

seniority, cost of living adjustments, lump sum increases

seniority

time spent in org/on a job which is used ot determine potential extra benefits or rewards

cost of living adjustments (cola)

% incrwase in wages to maintine real wage in a period of economic inflation (matching wages to combat inflation)

lump sum increases (LSI)

one time payment or yearly pay increase that does not increase base wages

variable pay

tying payment amount to some measure of characteristics or performance

incentive plans

establishing performance threshold to qualify for incentive payments

4 factors to consider in int’l environments

political, economic, sociocultural, technlological

expatriates/home country nationals

employees from a home country who are in another country on a work assignment

three things can lead to expatriate failure

fmaily adjustment (difficult to go overseas), work adjustment (difficult to adjust in new environment with work??), bad selection

host country nations

employees who are natives of the host country

third country nationals

emplpoyees who are natives of a country other then the home country ot the host country (3rd party country?)

work permit/visa

document issued by govt granting authority to a foreign perosn to seek work in that govt’s country

2 types of wokr permints/visa

open permit, employer specific