Case Study on Utility Concerns in Choosing an Assessment Method

Case study summary

The case talks about Randy, who works in a small airline company based in Nantucket Island. He is an innovative young person who won a two million lottery and now wants to invest in ice-cream shops for future earnings. The new investment wants a lot of employees, about 50 people, but Randy has no idea how to select these people and the criteria to be used. He seeks help from his best friend Mary, who advises him to conduct an interview. He also seeks help from Professor Ray Higgins, a business degree lecturer, who advises Randy to conduct interviews and work sample tests for assessment.

Human resource management is always challenging, especially for small businesses. The kind of employees selected or hired will determine the cost and time used in training, performance management, coaching, mentoring, and career development; this case study tries to pinpoint the vital information and selection procedures used for cost and time effectiveness.

The value increase can be calculated by, NsTrSDyZs- NC, hence 50(1) (.50) (2400) (80)-100(150) = $33,000.

Case study Questions

1. Due to the small number of applicants (100 individuals), Randy will have a high selection ratio. This information is vital as the selection method should be effective as the applicant’s number skill pool will be below. When the selection ratio is very high, there is a high chance that the organization will hire every applicant as they will be a low applicant turn-up and low skill pool to choose from. Hence Randy will not be too selective when selecting the applicant qualified for the job, reducing the qualifications levels. Reducing the levels of qualification will make almost all individuals prepared for the job reducing the time and effort required to uncover specific skills and qualifications. Also, it will reduce the time needed for candidate’s differentiation, saving on resources as the selection process should only point out half of the individuals who attended the interview. Another essential piece of information is detecting and predicting each applicant’s total work performance and the total effective cost of the professor’s procedures. A 50% cost difference for work sample testing may not be worth the little increase in invalidity since validity rates above.30 are suitable for usage and regarded helpful for both selection techniques (Toker et al., 2021)
2. Randy should perform an interview to select the right employees to look at each applicant’s skills and job performance since it can tell how they perform their daily duties. Although for economic gains, Randy can consider using the work sample selection method. In doing an ice cream job, apart from skills for the job, the applicant’s personality and character are key, and through the interview, Randy can select the best applicant suited for the job. Furthermore, work sample testing will not influence the applicant’s selection process like the interview, making it ineffective and time-consuming. It will be an excellent idea for Randy to increase the starting salary to have a vast pool of skills and talent to select from as more applicants are attracted by this strategy. (Oostrom et al. 2016).
3. Conducting an interview means that the boss, Randy, is looking for the most exemplary employees fitted for the job for the business’s success. No matter the number of applicants, the company will select the required number with no addition or subtraction. Randy needed 50 applicants out of 100 who applied. If the applicant increases than expected, Randy would be at an advantage because selecting individuals from a large pool of talent and skills will be an easy task as the interviewer will not go deeper to select individuals due to a decrease in selection ratio. Since the selection process cost varies according to the skills and qualifications required for the job, ice cream work requires low qualifications; hence, its selection process will be fast and cost-effective provided there are many applicants. Therefore Randy should use this selection process. More individuals will be likely to be selected as the field requires fewer skills than the large applicants’ pool.
4. Suitable applicants that are best qualified for the job are those that the company looks at their personal employment history and skill level; this will help interviews go an extra mile of researching the applicant’s qualifications. Also, interviewers should look at each individual’s experiences to assess if the individual is a business-oriented person with good customer care services. Also, Randy needs to get information on how their competitors pay their employees. It will help them get information on how they can pay their employees differently from the competitors, for example, if it will be wise to pay or offer incentives to employees apart from the hourly wage. Randy having such information will ease the selection process, reducing the time and resources needed.

Recommendations

Each employer should get sufficient information about the industry they are investing in, in terms of skills, work experience, and the personalities and character needed. Also, the company should access the market industry to quote the right wage for the applicant to get the right individuals for the business sustainability and future success.

Biblical application

The sharing principle is an important concept. Leviticus 25:5-7 contains this information. Crops that develop organically and grapes that flourish on your unpruned vines provide revenue and dividends that are derived from earlier successes in company. In order for employees to benefit from a company’s past performance, bonuses, profit-sharing, as well as other incentives must be distributed among them in proportion to their productivity and dedication to the company and its networks of consumers, management, and fellow employees.

References

Toker-Gültaş, Y., Ok, A. B., & Ceylan, S. (2021). Cognitive Biases of Destructive Leadership: A Special Focus on Machiavellianism. In Destructive Leadership and Management Hypocrisy. Emerald Publishing Limited.

Oostrom, J. K., Melchers, K. G., Ingold, P. V., & Kleinmann, M. (2016). Why do situational interviews predict performance? Is it saying how you would behave or knowing how you should behave?. Journal of Business and Psychology, 31(2), 279-291.

Wilhelmy, A., Stühlinger, M., Kim, K., Taphuntsang, D., & König, C. J. (2020). Does self‐verifying behavior in job interviews help secure job offers, even if it reveals negative information about the self?. International Journal of Selection and Assessment, 28(4), 430-444.