managing people exam

selection

process of choosing individuals with relevant qualifications to fill existing or projected job openings

goal of selection

minimize error and improve a company’s competitive position

person-job fit

job analysis identifies required competencies for job success

person-organization fit

degree to which individuals are matched to the culture and values of the organization

personnel selection

process through which organizations decide who will or will not be invited to join the organization; begins with identifying candidates through recruitment, number of applicants is reduced to best-qualified individuals, ends with selected individuals placed in jobs

applicant-tracking system

automates selection process of online applications; can also measure the performance of the hiring process

steps in selection process

screening applications and resumes, testing and reviewing work samples, interviewing candidates, checking references and background, making a selection

knowledge, skills, abilities

KSA

successful selection method

provides valid and reliable information, information can be generalized to apply to candidates, offers high utility, includes criteria that are legal

reliable

consistent, dependable, stable

validity

concerns the inferences we make from the measure, does the measure actually measure what we think it does and does it predict what we think it predicts?, is the measure “job-related”?

reliability

extent to which measurement is free from random error; organizations use statistics, like correlation coefficients, to compare results and determine reliability

test-retest reliability

how scores on the measure at one time relate to scores on the same measure at another time

validity

extent to which performance on measure relates to what the measure is trying to assess; all of what you want and none of what you don’t want

generalizability

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

practical value

selection method should produce information that is actually beneficial to the company; methods that provide economic value greater than the cost of using them are said to have utility

legality

adheres to existing laws and legal precedents; neutral-appearing selection methods; equal employment opportunity laws affect info organizations can gather on forms and in interviews

civil rights act of 1991

protects individuals from discrimination based on race, color, sex, religion, and national origin; differs by establishing employer’s explicit obligation to establish neutral-appearing selection method, allows a jury to decide punitive damages, explicitly prohibits granting preferential treatment to minority groups

age discrimination in employment act of 1967

covers over age 40 individuals; no protection for younger workers; outlaws almost all “mandatory retirement” programs- business necessity

americans with disabilities act of 1991

protects individuals with physical or mental disabilities; restrictions on pre-employment inquiries

candidate’s privacy rights

information gathered during selection may include information that candidates consider confidential; employers should only collect data using secure platforms

immigration reform and control act of 1986

requires employers to verify and maintain records on applicant’s legal rights to work in US

job applications and resumes

low cost way to gather basic information; contact information, work experience, educational background, applicant’s signature

resumes and application blanks

submitted by applicant to introduce self; applicants control content and presentation of info; drawback: information is biased and sometimes inaccurate

references

applicants provide names and contact info of people who can vouch for abilities and past job performance; biased: applicants choose people who will say nice things; usually checked when candidate is a finalist for the job

aptitude tests

assess how well a person can learn or acquire skills and abilities

achievement tests

measure a person’s existing knowledge and skills

physical ability tests

strength and endurance are essential in many jobs, but not as much as they were in the past; assess different aspects of physical ability including power, endurance, flexibility, balance, and coordination; tend to exclude women and those with physical disabilities

cognitive ability test

designed to measure skills and abilities; somtimes called intelligence tests; verbal comprehension, quantitative ability, reasoning ability; valid and relatively low cost; pose legal risks

verbal comprehension

a person’s capacity to understand and use written and spoken language

quantitative ability

speed and accuracy with which one can solve arithmetic problems

reasoning ability

a persons’s capacity to invent solutions to diverse problems

extroversion

sociable, gregarious, assertive, talkative, expressive

adjustment

emotionally stable, nondepressed, secure, content

agreeableness

courteous, trusting, good-natured, tolerant, cooperative, forgiving

conscientiousness

dependable, organized, persevering, thorough, achievement-oriented

inquisitiveness

curious, imaginative, artistically sensitive, broad-minded, plyaful

medical examinations

determines if applicant can meet job requirements; use measure of strength that does not exclude women, attempt to accommodate applicants with disabilities if possible. test components related to job requirements only after applicant has been hired

background checks and digital footprint

verify that applicants are who they say they are; false information is increasingly being found on resumes; criminal background checks are sensitive issue

nondirective interview

open-ended questions, low reliability and validity and generalizability

structured interview

only ask questions that are on the list, most reliable and generalizable, valid if job related

panel interview

this type of interview reduces bias

behavior description interview

has the highest validity

future oriented interview

has high validity

situational interview

confronts applicants on specific issues, questions or problems likely to arise on the job; experience based and future oriented questions (motivate employees, resolve conflict, overcome resistance to change)

interviews

should be structured, standardized, and focused on goals oriented to skills and observable behaviors; should be able to quantitatively rate each interview; should have structured note-taking system that will aid recall to satisfying ratings

performance management benefits

tells top performers they are valued, encourages communication between managers and their employees, establishes consistent standards for evaluating employees, helps the organization identify its strongest and weakest employees

challenges of performance management

people don’t see the value, see it as an event, instead of essential process, takes a lot of work, not very good at it

strategic

link employee behavior and expected results with organizational goalsa

administrative

used in salary administration, promotions, retentioin-termination, layoffs, recognition of employee performancee

developmental

identify employee strengths and weaknesses for managers to use in providing feedback and coaching and development and career planning

communication

emphasize what employees are expected to do, how they are performing, and what they need to improve; indicate important company values and principles

organization maintenance

show workforce performance, training, and development and talent acquisition needs

documentation

record for administrative decisions and information for litigation and investigatiosn

strategic congruence

extent to which performance management system elicits job performance that contributes to organization’s strategy, goals, and culture; must be flexible to adapt to change

deficient

does not measure all aspects of performance

contaminated

evaluates irrelevant aspects of performance or aspects that are not job related

acceptability

extent to which a performance measure is deemed satisfactory or accurate; may take too much time or not be accepted as fair (procedural, interpersonal, outcome)

procedural fairness

give managers and employees opportunity to participate in development of system; ensure consistent standards when evaluating different employees, minimize rating errors and biases; managers should collaborate with employees to set goals and key performance indicators

interpersonal fairness

give timely and complete feedback, allow employees to challenge the evaluation, provide feedback in an atmosphere or respect and courtesy; individual, team, and company goals and key performance indicators should be transparent to all employees

outcome fairness

communicate expectations regarding performance evaluations and standards, communicate expectations regarding rewards, the rationale for compensation and development decisions should be communicated and understood

specificity

extent to which a performance measure tells employees what is expected and how to meet expectations; relevant to both strategic and developmental purposes

evaluating performance

difficult to do because performance is complex

comparative, attributes, behavior, results, quality

what are the five different approaches of evaluating performance

comparative approach

compares an individual’s performance to others; simple ranking: highest performer to poorest; alternation ranking: cross one name off list at a time; virtually eliminates problems of leniency, central tendency, and strictness; easy to develop and use

attribute approach

graphic rating scales; evaluate list of traits on a scale, can be discrete or continuous; easy to develop and generalize

behavioral approach

behaviorally anchored rating scales; associated with different levels of performance, can increase inter rater reliability, can bias information recall; identifies and provides descriptions of common competencies; helps identify best employees to fill open positions; can link company’s strategy to specific behavior necessary for implementing strategy; high acceptability and reliability

results approach

managers set goals that are used as standards to evaluate individual’s performance; set effective goals, different types of measurement can be used for goals and objectives, goals set with manger and subordinates participation; minimizes subjectivity, links individual’s results with organization’s strategies and goals

quality approach

metric essential to the business (customer orientation, prevention approach to errors, continuous improvement, primary goal is improving customer satisfaction); many systems are incompatible with the quality approach; major focus should be to provide employees with feedback; adopts system-oriented focus

managers

most frequently used source of performance information, motivated to make accurate ratings, feedback from supervisors strongly related to performance and to employee perceptions of appraisal accuracy, might not have time to observe performance or may have bias against employe

peers

have expert knowledge of job requirements, have most opportunity to observe employee in day-to-day activities, often in best position to praise and recognize each other’s performance on daily basis, not expected to provide feedback, bring a different perspective, potential for bias and discomfort evaluating peers

direct reports

have best opportunity to evaluate how manager treats employees, upward feedback, gives subordiinates power over managers, might lead to emphasis of employee satisfaction over production

customers

in service industries, only person present to observe employee’s performance

self

not often used as sole source of performance information, but can still be valuable, tendency toward inflated assessments

360 degree appraisal

multiple raters provide input into a manager’s evaluation, minimizes bias, used primarily for strategic and developmental purposes

similar to me

individuals who are similar to us in race, gender, background, interest, beliefs, and the like receive higher ratings than those who are not

contrast

ratings are influenced by comparison between individuals instead of an objective standard

leniency

rater gives high ratings to all employees regardless of their performance

strictness

rater gives low ratings to all employees regardless of their performance

central tendency

rater gives middle or average ratings to all employees despite their perfromance

halo

rater gives employee high ratings on all aspects of performance because of an overall positive impression of the employee

horns

rater gives employee low ratings on all aspects of performance because of an overall negative impression of the employee

heuristics

unconscious bias- judgement outside of our consciousness that affects decisions based on background, culture, and personal experience

calibration meetings

managers discuss performance ratings and provide evidence supporting their ratings with goals of eliminating intentional errors

underutilizers

give honest, direct feedback, provide counseling, use team building and conflict resolution, link rewards to performance outcomes, offer needed training knowledge or skills, manage stress levels

solid performers

reward good performance, identify development opportunities, provide honest, direct feedback

deadwood

withholding pay increases, demotion, outplacement/firing, specific, direct feedback on problems

misdirected effort

coaching, frequent performance feedback, goal setting, training or temporary skill development, restructured job assignment

minimum wage

lowest amount employers may pay under federal or state law; stated as an amount of pay per hour

fair labor standards act

federal law that establishes minimum wage and requirements for overtime pay and child labor

equal employment opportunity

differences in pay must not be based on employee’s age, sex, race, or other protected status; laws do not guarantee equal pay; there are many legitimate factors that influence a person’s earnings

overtime pay

overtime is worked beyond 40 hours per week, under FLSA employers must pay 1.5 times employee’s usual rate for overtime hours

exempt employees

managers, outside salespeople, and other employees not covered by the FLSA requirement

nonexempt employees

employees covered by FLSA requirements for overtime pay

product markets

organizations that offer similar goods and services, organizations compete on quality, service, and price, cost of labor a significant part of organization’s costs, influences the top of the pay range

labor markets

organizations must compete to obtain human resources, competition establishes minimum pay to hire an employee for a job, may be influenced by cost of living, influences the bottom of the pay range

job structure

relative pay for different jobs within organizations

pay structure

pay policy resulting from job structure and pay level decisions

pay level

average amount the organization pays for a particular job

job evaluation

measures relative internal worth of organization’s jobs, committee identifies each job’s compensable factors, jobs rated for each factor