mng ppl

Importance of Employee Selection

• The selection process affects both organizational success and applicants' lives.

• Decisions should be fair, strategic, and beneficial to all stakeholders.

Standards for Selection Methods

• Five general standards: Reliability, Validity, Generalizability, Utility, and Legality.

• Reliability: Consistency of a method.

• Validity: How well the selection method predicts job performance.

• Criterion-related validation shows correlation between test scores and job

performance.

• Content validation ensures test content mirrors job tasks.

• Generalizability: Validity across various contexts.

• Utility: Contribution of the method to improving hiring decisions.

Legal Considerations in Selection

• ADA (1990): Requires reasonable accommodation unless undue hardship.

• Civil Rights Act (1991): Mandates neutral-appearing selection tools.

• ADEA (1967): Protects workers over 40 from age discrimination.

Selection Methods and Best Practices

• Common methods: Cognitive tests, personality inventories, work samples, structured

interviews.

• Structured interviews improve reliability by focusing on observable behaviors.

• Situational interviews present job-relevant scenarios.

• Reference checks are often unreliable due to overly positive or inaccurate reviews.

• Physical ability tests do not usually measure reaction time.

• The 'Big Five' personality traits exclude intelligence.

• Cognitive ability tests may have adverse impact on minority groups.

• Emotional intelligence includes self-awareness, empathy, and social skills.

Performance Management Basics

• Purpose: Align employee performance with organizational goals.

• Performance feedback should help improve and support employee development.

• First step: Identify important outcomes.

• Job descriptions should include measurable goals and relevant behaviors.

• Annual/biannual reviews compare actual vs. expected performance.

Types and Characteristics of Reviews

• Typical reviews occur midyear and annually with private discussions.

• Continuous reviews are forward-focused with fluid goal adjustment.

• Developmental reviews provide coaching and planning.

• Documentation supports legal and administrative uses.

Strategic Congruence

• Ensures alignment between employee behaviors and organizational strategy.

• Tools like OKRs help link nonfinancial and strategic goals.

• Continuous review of performance measures ensures alignment.

Validity and Reliability in Performance Measures

• Validity: Measures must assess all relevant performance aspects.

• Interrater reliability: Consistency between evaluators.

• Procedural fairness involves collaborative goal setting.

• Outcome fairness means communicating evaluation and reward expectations.

• Specificity includes both what and how performance is achieved.

Performance Evaluation Concepts

• Performance is difficult to evaluate because it's complex and what is considered

effective can vary.

• The comparative approach is easy to develop and use.

• The forced distribution method helps identify high-potential and low-performing

employees.

• Employees and managers should typically set three to five goals together.

• Sharing goals with someone higher in perceived status increases commitment.

Performance Perspectives & Approaches

• The four perspectives of performance do not include marketing and sales.

• The first step in ProMES is identifying the products or objectives the organization

expects to accomplish.

• The results approach minimizes subjectivity and aligns performance with

organizational goals.

• The quality approach aims to improve customer satisfaction.

• Many systems conflict with the quality approach because they lack both subjective

and objective feedback.

• Control charts are a statistical tool used in the quality approach to provide objective

feedback.

Performance Information Sources

• Managers are often used as raters because they are motivated to rate accurately.

• Peers are valuable raters because they often observe daily work.

• Frame-of-reference training helps reduce rater errors and increase accuracy.

• Managers should ask employees to rate themselves before giving performance

feedback.

• Calibration meetings help ensure fairness and consistency in performance ratings.

Diagnosing & Managing Performance

• An employee who is motivated but lacks ability shows misdirected effort.

• First step in diagnosing poor performance is considering its impact on the business.

Compensation & Pay Fairness

• From the employer’s perspective, pay is a motivational tool to align interests.

• Fairness in pay matters to employees because it affects their standard of living and

how they compare themselves to others.

• External equity involves comparing pay to similar jobs in other organizations.

• Internal equity is determined through job evaluations.

• Investing in employees helps attract, retain, and motivate a high-quality workforce.

Wage Theories & Market Pay

• Efficiency wage theory suggests that higher pay leads to better performance as

employees want to keep good jobs.

• When conducting market pay surveys, it’s crucial to select relevant jobs.

• Point-factor system weights can be assigned a priori or based on labor market

analysis.

• Benchmark jobs used in surveys are stable and common across organizations.

Global Pay Structures

• Market pay structures vary significantly across countries in level and relative job

worth.

• Expatriate pay is typically linked to the employee’s home country.

• Communication around pay structures greatly influences employee attitudes and

behaviors.

• Currency fluctuation and proximity to the U.S. market affect labor cost instability.

• Low labor costs may be associated with a lower-skilled workforce.

• Competitive labor evaluations also consider total operating costs, product speed,

and proximity to customers.