1) A company used three different selection methods to select entry level business process analyst: 1. Structured interviews (validity coefficient 0.62) 2. Mental Ability Test (validity coefficient 0.54) 3. Work sample (validity coefficient 0.50). A total of 120 job applicants were given the test and they hired 25 applicants for the position. The intelligence test cost the company $22 per person, the work sample test costs the company $40 per person, and the structured interviews cost the company $55 per person. The standardized score (z-score) of the 25 applicants (selected for the position) on the intelligence test was 0.72, structured interviews 0.82, and for work sample test 0.63. The standard deviation of job performance expressed in dollars for the 25 applicants was $8,000. Given this data, calculate the utility of the three different selection methods and make recommendation to the company as to which one they should use for the future. Assume that 200 applicants applied for the job instead of 120 and the company hired 25 of the 200. What happens to the utility using these different methods? Show your calculations as an appendix (this does not count towards the 2 pages limit).
The formula for utility is: Ns*rxy*SDy*Zx-Nt(C) where
Ns = Number of applicants selected for the position
rxy = Validity coefficient of the selection method
SDy = Standard deviation of job performance expressed in dollar terms
Zx = Average test score of those selected expressed in standardized unit (z-scores)
Nt = Total number of applicants
C = Cost of assessing each applicant
2. In a company, one of the manufacturing plants is facing a dilemma. Some of the workers have been approached by AFL-CIO to organize the plant into a union. At present, about ten percent of the employees of the plant have shown interest in organizing. The Plant Manager needs to develop a strategy to counter to thwart the attempted unionization. Having no experience in unions, he has hired you as a consultant and asked you to provide him a list of things that he should not do during the unionization process. Provide him with a list of things he should refrain from doing so that he is not in violation of any laws.
3. A local oil and gas company in Houston hires the following categories of employees: 1. Petroleum Engineers at all levels (entry level, senior level, middle-management level, etc.). 2. Clerical employees (entry level only). 3. Senior management staff (both internal and external searches are done). The company employs about 3,000 employees in the Houston area. The company is interested in revising its compensation package to be externally competitive. They want to conduct their own market survey of wages and benefits paid by the competitors. Help them identify the relevant labor market, competitors, and the key areas they should focus on in designing the survey. Note that I do not expect an actual survey but the areas they should cover in terms of whom to survey, what to survey, and where to survey.