Complete the Chapter 9 Exercise #5 (p. 322)
Jim Hill is the manager of subscriber account for the Prosper Company. The results of a job analysis indicate that Jim’s job includes four principal activities. A summary of Jim’s superior’s ratings of the job activities and Jim’s performance of each of them follows.
Principal Activity Frequency Importance Jim’s Performance
1 4.5 3 1.00
2 3.3 5 2.00
3 6.0 2 0.50
4 1.0 7 1.00
Assuming that Jim is paid $90,000 per year, use CREPID to estimate the overall economic value of his job performance.
Explain the meaning of the concept of SDy and why it’s important for HR Analytics. What did you find when you used the CREPID method to estimate the overall economic value of Jim Hill’s job performance in the exercise? What are the pros and cons of this method compared to Global Estimation?
Complete the Chapter 10 Exercise #3 (p. 352-353) The Top Dollar Co. is trying to decide whether to use an assessment center to select middle managers for its consumer products operations. The following information has been determined: variable costs are 0.10, corporate taxes are 44 percent, the discount rate is 9 percent, the ordinary selection procedure costs $700 per candidate, the assessment center costs $2,800 per candidate, the standard deviation of job performance is $55,000, the validity of the ordinary procedure is 0.30, the validity of the assessment center is 0.40, the selection ratio is 0.20, and the average tenure as a middle manager is 3 years. The program is designed to last 6 years, with 20 managers added each year. Beginning in year 4, however, one cohort separates each year until all hires from the program leave. Use Equation 10.6 in this chapter.
Should Top Dollar Co. adopt the assessment center to select middle managers? What payoffs can be expected in total, per selectee, and per selectee in the first year using the Brogden-Cronbach-Gleser Utility Calculator? How is this use of analytics in HR useful?
Jim Hill is the manager of subscriber account for the Prosper Company. The results of a job analysis indicate that Jim’s job includes four principal activities. A summary of Jim’s superior’s ratings of the job activities and Jim’s performance of each of them follows.
Principal Activity Frequency Importance Jim’s Performance
1 4.5 3 1.00
2 3.3 5 2.00
3 6.0 2 0.50
4 1.0 7 1.00
Assuming that Jim is paid $90,000 per year, use CREPID to estimate the overall economic value of his job performance.
Explain the meaning of the concept of SDy and why it’s important for HR Analytics. What did you find when you used the CREPID method to estimate the overall economic value of Jim Hill’s job performance in the exercise? What are the pros and cons of this method compared to Global Estimation?
Complete the Chapter 10 Exercise #3 (p. 352-353) The Top Dollar Co. is trying to decide whether to use an assessment center to select middle managers for its consumer products operations. The following information has been determined: variable costs are 0.10, corporate taxes are 44 percent, the discount rate is 9 percent, the ordinary selection procedure costs $700 per candidate, the assessment center costs $2,800 per candidate, the standard deviation of job performance is $55,000, the validity of the ordinary procedure is 0.30, the validity of the assessment center is 0.40, the selection ratio is 0.20, and the average tenure as a middle manager is 3 years. The program is designed to last 6 years, with 20 managers added each year. Beginning in year 4, however, one cohort separates each year until all hires from the program leave. Use Equation 10.6 in this chapter.
Should Top Dollar Co. adopt the assessment center to select middle managers? What payoffs can be expected in total, per selectee, and per selectee in the first year using the Brogden-Cronbach-Gleser Utility Calculator? How is this use of analytics in HR useful?
