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  • Page 1

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    0.0 The Proposal

    The importance of this part comes from the requirements of the assignment

    itself which requires the student to follow completely or partly the scientific

    research methods to come up with examined facts, effective solutions & analyzed

    information to accomplish the expected results of the assignment.

    Throughout this part, the semi-completed proposal will be conducted to highlight

    the main aspects and different issues of the assignment, and to identify the methods,

    articles, and communities will be dealt with.

    Finally, it is expected that this proposal will add value to the assignment by

    collecting all the supplementary issues of it in one part, and by approving that the

    assignment is committed to follow the scientific research methods -or part of them-

    to discuss and represent the theoretical & practical information related to it.

    Part One

  • Page 2

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    0.1 An Introduction

    The importance of Human Resource Management is increasing rapidly for every acting

    firms in the world, regardless its size, region, owner, capital, nature of work, orientation

    toward profit or non-profit and etc, this importance rises first, due to the need of human

    capital to accomplish and work for what the organizations have been created to do.

    Form this point of view comes the problem of the assignment of HRM course -which is

    offered at USTY campus in collaboration with OUM and presented, lectured and

    facilitated by Dr. Nayel Rashed on January 2014 semester-, which is revisiting the

    company policy on selection due to high turnover among the companys middle

    managers (BMHR5103 Assignment -Jan-2014).

    This assignment with this special problem is aimed to linkage between theory and

    practice of HRM in the aspects of (Selection Turnover Talent Management - training

    and development etc) which are critical concerns for any HR Manager in this era.

    From this point and for the purpose of solving the assignment problem and improving the

    student understanding & practicing skills, this assignment will Firstly, present the HR

    Department at University of Science & Technology as a Case Study to view the

    problem in the real world in One Chapter with using methods for collecting & analyzing

    information such as (Interview with the HR Manager Employee Guide HR Policies &

    Rules). Secondly, the analytical REPORT of the chosen Case Study will be discussed in

    ONE Chapter which view and critically identify Turnover problem as a precedent for One

    Chapter on Selection Issues, and special Chapter on Talent Management, followed by the

    Final Chapter of References and Appendixes.

    Finally, this assignment is accompanied with a great HOPE that it would enrich its

    writer's understanding of HRM subjects, and benefit the USTY with a new clear image of

    its HR practices in reality & in theories. And this assignment is attached with profuse of

    acknowledgments and thankfulness to Dr. Nayel Rashed who spent his time & efforts

    teaching and guiding us in the field of HRM & else, I have nothing to do or say for him

    just those few words "THANK YOU SIR. DR. NAYEL FOR EVERYTHING".

  • Page 3

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    0.2 The Objectives

    The objectives as stated in the assignment are:-

    1. To highlight the linkage between theory and practice of HRM.

    2. To highlight the roles of human resource manager in the human resource

    development and career development functions.

    3. To highlight the importance of training and development as a function of Human

    resource management process.

    But after the careful reading of the assignments these objectives can be added:-

    4. To identify the role of using selection methods effectively to reduce turnover

    among employee.

    5. To highlight the importance of talent employees for the company.

    0.3 The Assignment Community

    The community of the practical parts in this assignment is the HR Department at

    University of Science & Technology.

    0.4 The Assignment Problem

    The problem of this assignment is as situation in a selected company stated as;

    "revisiting the company policy on selection due to high turnover among the

    companys middle manager"(BMHR5103 Assignment -Jan-2014).

    Based on this problem the student is assigned to conduct an interview session with any

    company (UST) in order to understand better the current employee issues and their

    experiences on selection.

    0.5 The Assignment Methodology

    This assignment will follow the analytical & critical readings methodologies in the phase

    of data collections such as (interviews investigation previous studies personal

    observations etc), and will use as will the comparative and analytical methodologies in

    reporting phase on the case study and in delivering the Conclusions & Recommendations.

  • Page 4

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    0.6 The Assignment Hypotheses

    The hypotheses which have to be proven through this assignment are:-

    1. Voluntary Turnover among middle managers and talent workers is a critical

    problem to any company, specially to those who perform in the Education Field.

    2. Effectively creating and using a good Selection System will help to both

    predicting and reducing turnover among employees.

    3. Using Talent Management is important for orienting goals & integrating

    processes to improve all HRM functions.

    0.7 The Main References

    The main references were limited in the assignment to at least FIVE research articles on

    selection ONLY, but the assignment is not limited to the selection only, otherwise it is

    extended to a practical part which requires special references & report parts on selection,

    turnover, talent Mgt. and etc. which requires ore references, above all the assignment is

    based on the understanding of HRM as a whole.

    Due to those reasons and more, the main references for the assignment have been divided

    into three categories as follows:-

    a) The main Ref. for the practical part are:-

    1. Al-Awdy Najat, "the reality of recruitement system at UST' Master Thesis"

    2009.

    2. "The Employee Guide", USTY, First Ed-2014.

    3. "The Memorandum of HR Policies & Rules", USTY, Sep-2013.

    4. "The Interview with Mr. Faisal Haza The general manager for HR Department

    at UST", April-2014.

    b) The main Ref. for the Report Part are:-

    1. Adem Golee & Esra Kahya, " A fuzzy model for competency-based employee

    evaluation and selection," Computers & Industrial Engineering 52 (2007),.

    2. Adrian Furham, " HR Professionals Beliefs About, and Knowledge of,

    Assessment Techniques and Psychometric Tests," International Journal of

    Selection and Assessment, Sep-2009,.

    3. Leonard Schloss and J. Gregory Lahr, Watch Your Back: Smart Hiring and

    Proper Background Checks, Employee Relations Law Journal, Winter 2008,.

  • Page 5

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    4. Luren A. Rivera, " Hiring as Cultural Matching," American Sociological

    Association, 2012,.

    5. Murray Barrick and Ryan Zimmerman, Hiring for Retention and

    Performance, Human Resource Management, MarchApril 2009,.

    6. Murray Barrick and Ryan Zimmerman, RESEARCH REPORTS, Reducing

    Voluntary, Avoidable Turnover Through Selection," American Sociological

    Association, 2005,.

    In addition to the listed references there will be more mentioned in the references part at

    the end of this assignment.

    0.8 The Assignment Terminologies

    The main terms used throughout this assignment are defined as follows:-

    1. HR Department: The Administration of Human Resources at University of

    Science & Technology The Main Center Sana'a.

    2. Talent Management: is a goal-oriented and integrated process of planning for,

    recruiting, selecting, developing, and compensating employees.

    3. Selection: the process of choosing individuals with the correct qualifications

    needed to fill jobs in an organization

    4. Turnover: the process in which employees leave an organization and have to be

    replaced.

    5. University: The University of Science & Technology The Main Center

    Sana'a.

    6. (KSAOs): This abbreviation refer to; Knowledge, skills, Ability, and other

    characteristics of an employee.

  • Page 6

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1.0 The Case Study

    As required at the assignment that the student should Interview any HR

    manager (or above) from any company of your choice and Ask his/her

    opinion on selection by focusing on bunch of questions.

    The aim of this questions or interview is to provide the student with information

    related to selection practices and policies at the selected company, but as learnt in

    HRM theories, there are disadvantages of interviews as a source of information

    such as distorting of Info., hiding information and inability of the interviewee to

    deliver the info. To the interviewer. Due to those reason the other sources of

    information were used to extend the knowledge of selection practices and policies at

    the selected company such as (Memos Guides - investigations previous studies

    personal observations etc) .

    The selected company as a case study for this assignment is HR Department at

    University of Science & Technology, which the assignment will shed light on the

    background on the university, examine the HR Department's structure and duties,

    and reveal the rules, policies and procedures of selection applied in real life.

    Part Two

  • Page 7

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    CHAPTER ONE (Q1)

    1.1 Executive Summary

    The University of Science and Technology (UST) was established in 1994 as the first

    private University in Yemen. The main objective of its establishment was to offer

    services to the society and develop the educational process and scientific research and to

    establish a wide scientific environment of experience, research, and innovation at the

    time of acceleration of technology and knowledge. This enabled it to get a leading

    position on the educational map to become a special member in many associations of

    Arab, Islamic and international universities.

    Since the University was established in 1994, it established a special branch for girls

    combines all the programs of the university's colleges and other branches in Taiz and

    Hudaydah by the academic year 1996 - 1997 and later on in many governorates of the

    Republic to offer opportunities of advanced education. It also offered some post-graduate

    programs in coordination with Arab and non-Arab universities. The university is also

    very keen to develop its relations with its counterparts of higher education institutions in

    various fields through signing agreements of cooperation with many of these universities

    regionally or internationally. Regarding the university's membership, it is a founding

    member of the Arab association of private universities for higher education, first private

    university in Yemen, third university in Yemen obtained the active membership in the

    association of Arab universities, and membership of the association of Islamic

    universities in 2000, and finally culminated its efforts by obtaining the membership of

    association of the world universities. In addition, it hosted the fortieth session of the

    association of Arab universities.

    Finally, the university was recently granted the award of investment for 2009 by the

    General Authority of Investment as the best private university in Yemen.

  • Page 8

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1.2 The Nature Human resource policies and practices at UST

    Due to the importance of the university as a source of knowledge and provider of

    educational & research services to the community, it is important that it have a strong

    HRM system to supply the university with qualified employee to carry out these

    assignments.

    The success of the university depends mainly on its capability to hire and maintain the

    competent and talented employee with a compatible abilities and capabilities with the

    new trends of technology, environment, and etc, to help the university to achieve its

    competitive goals. (Alawdy, 2009).

    Universities are described as fragmented, loosely coupled organisations, where individual

    performance is highly valued. (Managing The University Community EUA, 2007).

    So, When it comes to hiring employees, HR Department is careful to emphasize not just

    hiring workers, but hiring the right workers.

    For UST, appropriate human resources are those people who will make a valuable

    contribution to the attainment of the companys organizational objectives. In hiring

    lecturers, managers, staff, and administrative assistants, for example, management

    considers hiring only those people who will best help the organization become

    successful. In finding appropriate human resources, management at UST follows four

    basic steps:(1) recruitment, (2) selection, (3) training, and (4) performance appraisal.

  • Page 9

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1.3 The Role Of Human Resource Department At UST

    HR Department at UST is considered to be the responsible department for recruiting

    process at the university. (Employee Guide, 2013).secretary

    For implementing such functions the HR Department - Sana'a Center was established on

    2002, with FOUR employees and now it operates with EIGHT employees in the main

    center and a representative controller in every faculty in the university as shown in Figure

    (1.1).

    The HR Department has line authority on hiring and selecting the managerial staff ,

    starting from making job analysis, designing job description & specifications, developing

    tests, representing HRD in selection interview, and participating in making the final

    decisions. But it has supported authority on hiring the academic staff represented on

    making the final procedures such as (Checking & Archiving Files, Preparing Contracts,

    ensuring the reliability and validity of selection methods ,,,, etc).

    University President

    Archive Quality Control compensationTraining &

    DevelopmentLabour Affaires

    HR In Charge 1

    HR In Charge 2

    Faculty HR Rep. Faculty HR Rep Faculty HR RepFaculty HR Rep

    HRD Secretary

    General Manager

    HRD Manager

    Figure (1.1): The organizational Structure of HRD Employees at UST.

    Source: The student.

  • Page 10

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1.4 The Interview With HR Manager At UST

    On April 2014, the student: Mansour Al-Assry had the owner to meet Mr. Faisal Haza'a

    the HR Manager at UST and during the meeting the following questions have been asked

    to get the following answers:-

    Q1. What are the roles of selection in UST?

    The selection is playing a significant role in UST specially, when it is conducted with

    using high techniques and technologies. It enables the UST to achieve the following

    goals:-

    1. To hire competence individuals before the competitions.

    2. Acquire new KSAOs from the external environment to support and enhance the

    available KSAOs at university to jointly contribute in the development of UST

    and to achieve its strategic mission and vision.

    3. The good selection leads to good performance, and lead the company to gain &

    sustain a competitive advantage.

    4. From the other side, good selection for UST contribute on the improvement of

    social responsibilities & services made by UST as a source of knowledge &

    education.

    These are some roles of selection in UST.

    Q2. Is selection related to performance / turnover of UST?

    Of course, Yes, the HRD & professionals include many predictors in selections methods

    to predict the levels of performance of the candidates. Furthermore, most of the tests at

    UST are oriented to measure the level of performance that the candidate has and how it

    related to the real job.

    About prediction turnover, from some information in The CVs or Application Forms of

    the candidates we can predicate the stability of the previous positions of the candidate,

    how long had the candidate been in his past positions? & etc.

  • Page 11

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Q3. How do you quantify the performance measurement in your selection

    procedures?

    The Professionals at HRD in UST quantify the performance measurement based on many

    factors such as:

    a) The type of the position.

    b) The bunch of KSAOs required for the job.

    c) Job analysis, specification, & description.

    d) The timeframe for selection.

    And there are many types of tests to measure the performance such as:

    a) Knowledge tests.

    b) Skills tests.

    c) Performance tests.

    d) Emotional tests.

    e) Physical tests.

    f) Interviews.

    And some special tests required by the nature of the position.

    Q4. What are the issues which need to be considered before the management decide

    on the selection tool?

    We at HRD consider these critical issues be deciding on the selection tool:-

    a) The nature of the attribute to be measured and how to be measured.

    b) The nature and the extent of Knowledge, Skills, abilities, qualifications needed for

    the position and the suitable tool to measure them.

    c) The technological issues to improve the measurement process.

    d) The legal issues of selection tool; and some other issues.

    Q5. How do you evaluate the strengths or weaknesses of the candidate by using the

    selection tool?

    If the measurement tool is valid and reliable it is easy to evaluate the strengths or

    weaknesses of the candidate, by comparing the obtained scores of the candidate to the

    standards or to the agreeable benchmark to identify the strengths or weaknesses of the

    candidate and the extent of these strengths or weaknesses.

  • Page 12

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Q6. How do you decide that the candidate is eligible for hiring based on the result

    of the selection tool?

    If the steps of selection process at HRD is applied correctly, and the candidate achieved

    the required scores of the tests, has the requirements mentioned in the job description and

    meet the KSAOs required at job specification, HRD can decide or recommend that the

    candidate is eligible for hiring for the opening position.

    Moreover, the result of the selection tool is one of many predictors can contribute in

    making decision about to or not to hire some to do something.

    Q7. How do you ensure your selection method is suitable to be applied at UST?

    By revisiting them over time, and make evaluations needed to ensure their reliability &

    validity of them. Another thing is important here, that the development of technology is

    encourage HRD at UST to develop its methods from time to time.

    Q8. How do you avoid negligent hiring?

    First of all, it is a first time of me to here this term, but if you mean that; hiring regardless

    checking the past crime records or something like that; I can assure you that we do avoid

    such negligent hiring as we normally investigate on potential employees background

    before we proceed with the hiring processes. We also make sure that we do

    some background check with the potential employee by conducting interviews with the

    referees, verifying on the candidates works and educational histories, in case of

    suspecting something about some we can check with police station the crime history of

    the candidate.

    Q9. How do you measure the effectiveness of the selection method?

    HRD measures the effectiveness of the selection method by the following procedures:-

    a) Measuring its validity,

    b) Identifying its cost.

    c) Administrating the selection method again and again to prove its consistency and

    output.

  • Page 13

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Q10. Do you conduct post evaluation on the selection tools?

    Pre & after evaluation on the selection tools is being practiced, by using surveys on

    employees, managers and professionals to ensure that our selection tools are measure

    what suppose to measure & provide fair results reflects what the management needs to

    know about the candidate

    Q11. How do you manage talent and key employees in UST?

    Frankly, this is a tough question for me, because we have a turnover among two talent

    groups of employees at UST the first, is managers, and the second is academic staff

    members.

    To prevent this kind of turnover the UST has taken many steps ahead like:-

    1. Doubling the salaries of The managers and Head of Departments.

    2. Providing full or partial scholarships to their families.

    3. Distributing iPad for everyone of them.

    4. Providing scholarships to the academic staff to continue their higher studies, now

    the university enrolled more than 70 persons from the academic staff in Master

    Programs and more than 40 persons from the academic staff in PhD Programs.

    Finally, Retaining Talents are crucial to us to maintain our existent.

    Thank you Mr. Faisal

  • Page 14

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1.5 Beyond The Interview

    To provide a broader image about the selection process at UST, the student strived to

    extract information to more enrich the view of selection process applied at UST. For this

    purpose the memorandum of HR Policies and Rules has been investigated to extract the

    objectives, policies, procedures, rules, authorities, participated parties and processes

    participating in the formulation of the selection function at UST, the findings were as

    follows:-

    1. From the Part of the memorandum Objectives, it participates in selection function

    with these objectives:_

    a) To Select the best employees & competencies and to retain them.

    b) To retain the distinguished employees to create the employment

    stabilizing.

    2. From the Part of the recruitment of Managerial Staff the steps of selection is listed

    as follows:-

    a) Checking & analyzing all candidates' files, to put off all uncompleted

    or unqualified candidates' files.

    b) Conducting the primary Interview. (Employee's Guide, 2013).

    c) Making the appropriate tests such as (Psychological & personality -

    cognitive tests Performance Tests Values Job orientations

    Finger dexterity) using the appropriate forms.

    d) Conducting the Final Personal Interview.

    e) Making the offer based on the recommendation of Interview Panel.

    f) Making the Physical Tests.

    g) Completion the rest of Hiring requirements such (Commercial Warrant

    Personal Photos Qualification Certificates etc.).

    h) Special issues in Selection Process:-

    i. The appointment of General Managers and Branches Managers

    should be based on the Rector's Decision.

    ii. The new employee should spend Three Months on probation.

    iii. The new employee should have the needed training & development

    based on the suitable developed program by HR department.

  • Page 15

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    iv. The new employee will be hired officially after the probation

    period and achieve Very Good rank in performance appraisal.

    After revealing the answers of UST-HR Manager and extracting the objectives, policies,

    procedures, rules, authorities, participated parties and processes participating in the

    formulation of the selection function at UST, it is time to make a report about the

    assignment's problem, case, and questions in the following chapters.

  • Page 16

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    2.0 Employee Turnover

    In many HR references the subject of TURNOVER is discussed as one of

    employee retention issues after discussing the selection issues, but in this assignment

    it may precedes the discussion of selection issues, because it is the problem of the

    assignment which stated as; " revisiting the company policy on selection due to

    HIGH TURNOVER among the companys middle managers". (BMHR5103

    Assignment -Jan-2014).

    The turnover here is a cause of revisiting the company's policy on selection, so due

    to causal-effect relationship and problem solving model, it must be discussed and

    analyzed first, the selection aspects will come later on as one of the treatments to

    reduce turnover.

    The turnover will be discussed in this assignment from the aspects of definition,

    types, cause, costs & benefits, and limiting turnover techniques. Then the status of

    turnover in our case study (UST) will be revealed.

    Part Three

  • Page 17

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    CHAPTER TWO

    2.0 EMPLOYEE TURNOVER

    2.1 Definition and Nature of Turnover

    Turnover is defined by (Mathis, Jackson-2010) as the process in which employees leave

    an organization and have to be replaced.

    Referred to the above definition of turnover, it is clearly obvious that leaving an

    organization is a questionable matter, because of the cost problems associated turnover,

    moreover, it is highly crucial when it comes to loosing high trained employee who have

    competencies of knowledge, skills, abilities, and other characteristics (KSAOs) which

    any company should strive to have enough of them.

    But from a strategic prospective, some turnover is actually good, that when an employee

    has lack of (KSAOs) competencies, it is good to leave, and be replaced with more

    suitable replacement. (Heneman III, Judge, Muller-2012 with modification).

    2.2 Types of Turnover

    Based on the nature of turnover there are many types of employee turnover as exhibited

    in Exhibit (1), furthermore, both organizations categorized turnover into whether the

    turnover was voluntary or involuntary from the employees perspective and avoidable or

    unavoidable from the organizations perspective. (Barrick, Zimmerman 2005).

    So, the types of turnover can be classified into two classification:

    1. Voluntary Turnover, where the employee leave by choice, or it can be described

    as the leaving initiated by the employee. This kind of turnover is divided into

    avoidable turnover and unavoidable turnover, the avoidable turnover is the

    targeted type with reducing.

    As (Barrick, Zimmerman 2005) stated in their article research that, the

    avoidable turnover reflected the individuals choice to leave and turnover the

    organization may have been able to avoid (e.g., through raises, providing more

    work hours, etc.).

  • Page 18

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    2. Involuntary Turnover

    Involuntary turnovers are inevitable. The employer will have to let some

    employers go when jobs are restructured or when competitive pressures

    necessitate reductions in the workforce.

    Unavoidable turnover (e.g., quitting to follow a relocating spouse) was not of

    primary interest because these leavers did not withdraw because of dissatisfaction

    with the job. (Barrick, Zimmerman 2005).

    a. Voluntary Turnover (employee initiated)

    Avoidable (could prevented)

    Unavoidable (couldn't

    prevented)

    Try to prevent;

    High-value employees

    Do not prevent;

    Low-value employees

    No attempt to prevent;

    Regardless of value

    High performance.

    Strong (KSAOs).

    Valued Intellectual

    Capital.

    High promotion

    potential.

    High training.

    High experience.

    Difficult to find

    replacement.

    low performance.

    Weak (KSAOs).

    Little Intellectual

    Capital.

    Low promotion

    potential.

    Low training.

    Low experience.

    Easy to find

    replacement.

    Retirement.

    Dual career.

    New career.

    Health.

    Child care or pregnancy.

    Return to school.

    Leave county.

    Take a break.

    b. Involuntary Turnover (Organization initiated)

    Discharge

    Downsizing

    Discipline.

    Poor performance.

    Permanent layoff.

    Temporary layoff.

    Site or planet closing, relocation.

    Redundancy due to a merger or

    acquisition.

    Exhibit (1) Types of Turnover

  • Page 19

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Source: (Heneman III, Judge, Muller-2012)

    2.3 Turnover and Churn

    Hiring new workers while laying off others is called churn. This practice raises a

    paradox in which employers complain about not being able to find skilled workers

    while they are laying off others.( (Mathis, Jackson-2010).

    As organizations face economic and financial problems that result in layoffs, the

    remaining employees are more likely to consider jobs at other firms.

    2.4 Causes of Turnover

    There are many models as in Figure (1) to exhibit cause of every type of turnover,

    but what matters here is the Voluntary turnover which occurs for many reasons

    including job dissatisfaction, poor pay, a lack of promotional opportunities, work-

    life balance issues, and inadequate health-care benefits. All these reasons and

    more illustrated in the Exhibit (2) and Figure (1) & (2).

    Exhibit (2): the relationships between variables (Drivers) causes Voluntary turnover.

    Sources: http://www.emeraldinsight.com

  • Page 20

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Some models dividing the factors Effecting employee turnover into two categories

    internal and external factors as shown in figure (2).

    2.5 Measurement of Turnover

    The turnover rate for an organization can be computed as a monthly or yearly cost. The

    following formula, in which separations means departures from the organization, is

    widely used to measure the turnover rate :.

    This measurement requires data on, and decision about the followings:-

    Figure (1): The Models explaining the factors effecting employee turnover.

    Sources: http://nuage-software.com/wp/wp-content/uploads/Factors-Affecting-Employee-Turnover.

    Figure (2): The internal and external factors effecting employee turnover.

    Sources: http://t3.gstatic.com/images?q=tbn:ANd9GcRKaKCWDUoxZ1MxgwSIrJvOkbgGP5wk5kqZFGIEhVWhH7mS4Q9KCA

  • Page 21

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    1. Time period of interest. (e.g month, year etc.).

    2. Employee counts (e.g, Full time, part time, etc).

    3. How to calculate the average number of employees over the time period.

    For example, at the start of the year a business had 40 employees, but during the year 9

    staff resigned with 2 new hires, thus leaving 33 staff members at the end of the year.

    Hence this year's turnover is 25%. This is derived from, (9/((40+33)/2))*100 = 24.66%.

    Figure (3): Example on the rate of turnover.

    Sources: http://www.inc.com/uploaded_files/image/strategy-92-turnover-statistics-inline_14290.jpg

  • Page 22

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    2.6 Cost & Benefits of Turnover

    The employee turnover has an obvious cost a company time, money, and other

    resources. "Research suggests that direct replacement costs can reach as high as

    50%-60% of an employees annual salary, with total costs associated with turnover

    ranging from 90% to 200% of annual salary".( David G. Allen,-2008).

    But from a strategic prospective, some turnover is actually good, that when an

    employee has lack of (KSAOs) competencies, it is good to leave, and be replaced

    with more suitable replacement. (Heneman III, Judge, Muller-2012 with

    modification).

    The summary of the Cost & Benefits of Turnover can be exhibited from Table (1).

    SEPARATION COSTS

    Financial

    HR staff time (exit interview, payroll administration, benefits).

    Managers time (retention attempts, exit interview).

    Accrued paid time off (vacation, sick pay).

    temporary coverage (contingent employee, overtime for remaining

    employees)

    Other

    Delays in production and customer service; decreases in product or

    service quality.

    lost clients.

    Clients not acquired that would have been acquired if employee

    had stayed.

    Stiffer competition as employee moves to a rival company or forms

    own business

    Contagion (other employees decide to leave; for example, to join

    defector at his/her new organization)

    Disruptions to team-based work.

    loss of workforce diversity

    Replacement

    Costs

    new hires compensation

    Hiring inducements (signing bonus, reimbursement of relocation

    expenses, perks)

    Hiring manager and unit/department employee time

    orientation program time and materials

    HR staff induction costs (payroll, benefits enrollment)

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    Training

    Costs

    Formal training (trainee and instruction time, materials,

    equipment).

    on-the-job training (supervisor and employee time)

    Mentoring (mentors time)

    Socialization (other employees time, travel

    Productivity loss until replacement has mastered job

    BENEFITS OF TURNOVER

    Hiring more performer employee.

    New KSAOs & motivation.

    Opportunity to restructure work unit.

    Savings from not replacing employees.

    Promotion Opportunity for others.

    Replacement less expensive in salary & seniority-based benefits.

    Table 2.1: The summary of the Cost & Benefits of Turnover

    Source: Herbert G. Heneman, iiiand timothy A. Judge, Staffing Organizations (7e) - 2013

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    2.7 Reducing Turnover

    Reducing employee turnover is dependent on the total work environment you offer

    for employees. These recommendations about reducing employee turnover are also

    common-sense, basic and incredibly hard to find in organizations today.

    The following list is to show ways to reduce voluntary turnover:

    1. Select the right people in the first place through behavior-based testing and

    competency screening. The right person, in the right seat, on the right bus is the

    starting point. (Barrick, Zimmerman 2005).

    2. At the same time, don't neglect to hire people with the innate talent, ability, and

    smarts to work in almost any position even if you don't currently have the "best"

    match available. Hire the smartest people you can find to reduce employee

    turnover. (Schloss J. Gregory-2008).

    3. Offer an attractive, competitive, comprehensive benefits package with components

    such as life insurance, disability insurance and flexible hours.

    4. Provide opportunities for people to share their knowledge on-the-job.

    5. Demonstrate respect for employees at all times.

    6. Offer performance feedback and praise good efforts and results to reduce employee

    turnover.

    7. People want to enjoy their work. Make work fun. Engage and employ the special

    talents of each individual.

    8. Enable employees to balance work and life.

    9. Involve employees in decisions that affect their jobs and the overall direction of the

    company whenever possible.

    10. Recognize excellent performance, and especially, link pay to performance to reduce

    employee turnover. Your key employees are motivated when their above-average

    efforts are recognized and rewarded.

    11. Base the upside of bonus potential on the success of both the employee and the

    company and make it limitless within company parameters.

    12. Recognize and celebrate success. Mark their passage as important goals are achieved.

    13. Staff adequately so overtime is minimized for those who don't want it and people

    don't wear themselves out.

    14. Nurture and celebrate organization traditions.

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    15. Provide opportunities within the company for cross-training and career progression.

    16. Communicate goals, roles and responsibilities so people know what is expected and

    feel like part of the in-crowd.

    17. Finally, encourage employees to have good, even best, friends, at work.

    2.8 Turnover at UST

    Returning back to the assignment case study to analyze the voluntary turnover at

    UST, from personal observations and from the interview the HR manager said; the

    university faces turnover among academic staff can range from 20% to 30%, which

    reflect a real problem should be solved.

    Now we will try to make a report on selection function to advise UST later on how to

    reduce turnover through selection to avoid seeing this letter submitted to you by a

    talent employee you have.

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Employee Selection

    This is the main part of this assignment, due to the report required in the

    assignment to write a report on selection based on the interview with HR Manager,

    and based on reading more than FIVE Articles & referencing to more than FOUR

    Books covering selection related issues.

    Writing the report requires general understanding on selection function as a whole

    and integrated understanding on theoretical & practical issues developed from

    questions & answers of the interview and from practicing the selection in the real

    world, for that, this part will discuss the role of selection in the company, the

    relationship between selection & performance / turnover of employee, the

    quantifying of performance measurement, the considerations before deciding on the

    selection tool, the using of selection tool to evaluate the strengths or weaknesses of

    the candidate, deciding the eligibility for hiring based on the result of the selection

    tool, ensuring that selection method is suitable to be applied at the company, how to

    avoid negligent hiring, measuring the effectiveness of the selection method, and the

    last but not least conducting post evaluation on the selection tools.

    Finally, this chapter will be followed by a conclusion part to compare between the

    theories discussed in this part and what is applied in the UST HR Department, the

    employee Selection Part along with those conclusions will provide the student with a

    strong base to deliver some useful recommendations to support HR current policies

    & rules and to reduce the related problems like, negligent hiring, employee turnover

    ,,,etc.

    Part Four

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    CHAPTER THREE (Q2)

    3.0 EMPLOYEE SELECTION

    3.1 Definition of Selection

    The selection is defined as "the process of choosing individuals with the correct

    qualifications needed to fill jobs in an organization". (Mathis, Jackson-2010).

    Another definition developed by (R. Wayne Monday 2014) stated that:

    "selection is the process of choosing from a group of applicants the individual

    best suited for a particular position and the organization".

    From UST Prospective according to the answers of HR Manager & Policy

    objectives, the student can develop this integrated definition on selection as: a

    process of choosing the right person with right competencies and (KSAOs)

    for the right available position after passing on the right set of tests and

    fulfilling all the other position requirements.

    The last definition is the summary for all process of selection, which covers and

    integrated as much as can be done to match the individual with the position.

    3.2 The Role of Selection in the Company (Q1)

    As illustrated in Figure (1) it is clear that Selection occupies an important

    position in Staffing Organizations Model which is considered as a core activity

    of staffing. Selection through applying its measurements & tests for selecting

    employees from external or internal sources is contributing in meeting HR &

    organization Strategies with supplying the organization with strategic staff to

    achieve strategic objectives.

    Furthermore, Selecting the right candidate requires identifying the specific skills,

    knowledge and qualities you seek and desire in an employee. This can pertain to

    the necessary skills and knowledge for the position itself, such as a specific

    degree or certification, and the desired personal qualities, such as a preference to

    hire employees with good moral and ethical standards. Other important parts of

    the selection process include conducting any necessary aptitude tests and

    conducting a thorough background check to ensure the employee meets the basic

    qualifications of both the position and the company.

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    From UST Prospective according to the answers of HR Manager & Policy objectives, the

    role of selection in UST is to:

    a) To hire the best employees & competencies and to retain them, to gain

    a competitive advantage in the competitive world.

    b) To retain the distinguished employees to create the employment

    stabilizing for both the university and the employees.

    Figure (3.1): The Role of Selection in Organization.

    Sources: Herbert G. Heneman, iiiand timothy A. Judge, Staffing Organizations (7e) - 2013

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    3.3 Selection Process (All Qs)

    The selection process typically begins with the preliminary screening. Next,

    applicants complete the firms application for employment or provide a rsum.

    Then they progress through a series of selection tests, one or more employment

    interviews, and pre-employment screening including background and reference

    checks. The hiring manager then offers the successful applicant a job, subject to

    successful completion of a medical examination. An applicant may be rejected at

    any time during the selection process. Figure (3.2) will illustrate the streaming of

    selection process steps

    External Environment

    Internal Environment.

    Recruited Individual

    Preliminary Screening

    Review of Applicants

    & Resumes

    Selecting Tests

    Employment Interviews

    Screening Background

    & References Checks

    Selection Decision

    Physical Exam

    Employed Individual

    Rejected

    Ap

    plican

    ts

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    The above mentioned process is the traditional process for selection. Nowadays,

    and based on articles reading, there is a model for selection called A fuzzy model

    for competency-based employee evaluation and selection developed by; (Adem

    Golec, Esra Kahya 2007).

    To understandably show the proposed fuzzy model for competency-based

    employee evaluation and selection framework, a procedure regarding stage-by-

    stage unification is first presented:

    Stage 1. Form an evaluation and selection hierarchy for having the right people in

    the right jobs.

    Stage 2. Establish a heuristic algorithm based on the use of fuzzy linguistic

    variables to characterize the com-petency of available employees to satisfy a

    common set of an organization goal.

    Stage 3. Develop a fuzzy rule-base system based on the competency factors to

    determine and select the best employee according to his/her score.

    Stage 4. Discuss the results and make the final decision to select the employee.

    (Adem Golec, Esra Kahya 2007) have proposed that employee selection

    framework has the following advantages:

    The hierarchical structure is consistent with organization goals and strategies.

    The decision makers can recognize the relationships among different goals and

    evaluate their influence by modeling them to the hierarchical structure.

    The decision-makers can decompose the compound employee selection problem

    into simpler and more logical judgments of the factors.

    The model is flexible enough to integrate extra factors in the evaluation.

    The model assesses corporate factors and guidance based on the organization

    goals. It cannot only reduce costs during selection phase, but also diminish the

    conflict and hidden costs in the implementation stage.

    Figure. (3.3) illustrates a flowchart for the employee evaluation and selection

    procedure.

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    Figure 3.3: A flowchart for the employee evaluation and selection procedure.

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    3.4 Predicting & Measuring Performance / Turnover Throughout Employee

    Selection, (Q2 & 3)

    As mentioned in the second question of question TWO of HRM the assignment,

    the relationship between selection & performance / turnover of employee is an

    important issue to be discussed theoretically after this question being answered by

    YES by UST-HR Manager.

    When making hiring decisions, organizations historically have focused on

    determining which job candidate will likely be the best performer. As it becomes

    more difficult to retain employees, organizations have also started to try to

    determine which candidates are most likely to stay with the organization. These

    two determinations must be developed at selection process by determining set of

    tests and methods to predict employee performance and voluntary turnover

    before the employee being hired.

    Murray Barrick and Ryan Zimmerman, in their Research Article Hiring for

    Retention and Performance" April 2009, which was a development of their

    previous Research Article titled as " RESEARCH REPORTS, Reducing

    Voluntary, Avoidable Turnover Through Selection," -2005," highlighted this

    issue in their articles and evaluated the usefulness of several pre-hire variables to

    predict voluntary turnover and job performance.

    In their last article they found these findings which enable the general using of

    personality, biographical, aptitudes, attitude and other tests to predict both the

    performance and turnover of employee before they have been hired.

    Those findings and hypotheses will be summarized here with some

    modification:-

    1. Employees who have greater pre-hire embeddedness in the organization

    will be (a) more likely to remain with their current employers and (b) better

    performers than those with lower embeddedness.

    2. Employees who had greater habitual commitment to their former

    employers (Longer Tenure) will be (a) more likely to stay with their current

    employers and (b) better performers than those with less commitment.

    3. Employees with higher confidence will be (a) more likely to stay with the

    organization and (b) better performers than those with lower confidence.

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    4. Employees who are more motivated to obtain the job will be (a) more likely

    to stay and (b) better performers than those who are not as motivated.

    5. Employees who are more conscientious will be (a) more likely to stay with

    the organization and (b) better performers than those who are less

    conscientious.

    6. Employees who are more emotionally stable will be (a) more likely to

    remain with the organization and (b) better performers than those who are less

    stable.

    7. The impact of more pre-hire embeddedness, attraction, and confidence on

    turnover and performance will be greater earlier in employees job tenure than

    later in their tenure.

    About the relationship between selection and turnover only, (Barrick, Zimmerman

    2005) confirmed that (1) biodata (Biographical Methods), (2) clear-purpose

    attitudes and intentions, and disguised-purpose dispositional retention scales

    predicted voluntary, avoidable turnover.

    Throughout their study, they improved these valuable hypotheses:-

    1. Employees who had a longer tenure with their immediate former employers

    will be more apt to stay with their current employers than employees who had

    a shorter tenure with their previous employers.'

    2. Employees who were referred by current employees will be more likely to

    remain with their current employers.

    3. The more friends and family employees had at the current organization at the

    time of hire, the more likely they are to remain.

    (Barrick, Zimmerman 2005) used biodata methods like (background checks,

    Application Forms, tenure in previous job, referring by a family member or

    friend working in the company, and etc) to approve the above hypotheses.

    4. Employees who have a greater intent to quit prior to hire will be more apt to

    do so than those who are not intending to quit.

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    5. Employees with a greater desire for the job will be less likely to quit than

    those who do not have as much desire for the job.

    The Attitudes and Behavioral Intentions methods used to approve these two

    hypotheses which predict the possibility of employee turnover.

    6. Employees with higher self-confidence will be more likely to stay with the

    organization than those with lower self-confidence.

    7. Employees who are more decisive will be more apt to stay than those

    employees who are not as decisive.

    Two disguised-purpose dispositional scales expected to have important

    relationships with turnover are self-confidence and decisiveness used to

    approve the last hypotheses.

    For the relationship between selection and performance, it is obvious

    that one of the most important function of selection is to measure and predict the

    performance of the candidate, this measurement and prediction utilize many

    selection tests such as:

    3.4.1 Performance Tests & Work Samples

    Performance Tests are mechanism to assess actual performance rather than

    underlying capacity or disposition. (Heneman III, Judge, Muller-2012 with

    modification) (e.g., fix a car, teach a class, type a document),

    The potential uses of these selection measures are quite broad in terms of job

    content & skill level.

    There are some types of Performance Tests & Work Samples as follows:-

    a) Work Sample Tests,

    are Actual job tasks used in testing applicants' performance

    which require an applicant to perform a simulated task that is a

    specified part of the target job. Requiring an applicant for an

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    administrative assistants job to type a business letter as

    quickly as possible would be one such test.

    For example, an in-basket test is a work sample test in which a job

    candidate is asked to respond to memos in a hypotheti-cal in-basket that

    are typical of the problems experienced in that job.

    b) Situational Judgment Tests: These tests are designed to assess an

    applicants judgment regarding a situation encountered in the workplace.

    c) Management Assessment Centers: provide simulations in which

    candidates perform realistic management tasks under the observation of

    experts who appraise each candidates potential. Simulated exercises

    include in-basket, leaderless group discussion, management games,

    individual presentations, objective tests, and interviews.

    d) Situational Testing And Video-Based Situational Testing: which

    typically present the candidate with several scenarios, each followed by a

    multiple-choice question.

    e) Computerized Multimedia Candidate Assessment Tools: are systems

    specifically designed for each company to measure any type of skill or

    ability.

    f) Realistic Job Previews: Being explicit about work schedules,

    preferences, and other job standards at the point of interview can help

    reduce turnover later.

    3.4.2 Personality Tests

    Personality Tests are used to assess characteristics such as attitude,

    motivation, and temperament & measure basic aspects of an applicants

    personality, such as introversion, stability, and motivation.

    At one time Personality Tests were not perceived as a valid selection method.

    Today, however most research reach most positive results about the role of

    personality tests in predicting performance. (R.M. Guion & R.F. Gottier,

    1965).

    Personality Tests predicting performance by correlating with job performance

    in a number of areas. Different traits are predictive of different jobs.

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    3.4.3 Structured Performance-Based Interviews

    Because of that many companies that rely heavily on the interview for their

    selection decisions, while some types of structured behavioral and

    competency interviews can be problematic and may result in missing out on

    hiring the best person for the job. It's important to understand the limitations

    of these types of interviews and how you can effortlessly overcome and

    "upgrade" them by using performance-based interviews.

    3.4.4 Ability Tests

    Tests that assess an individuals ability to perform in a specific manner are

    grouped as ability tests. These are sometimes further differentiated into

    aptitude tests and achievement tests. (Mathis, Jackson-2010)

    There are types of ability tests as follows:-

    a) Cognitive Abilities Cognitive tests include tests of general

    reasoning ability (intelligence) and tests of specific mental abilities

    like memory and inductive reasoning.

    1. Intelligence tests are tests of general intellectual abilities ranging

    from memory, vocabulary, and verbal fluency to numerical ability.

    2. Specific cognitive abilities (aptitudes) include inductive and

    deductive reasoning, verbal comprehension, memory, and

    numerical ability.

    b) Motor and Physical Abilities Employers may use various tests to

    measure such motor abilities as finger dexterity, manual dexterity, and

    reaction time. They may also want to measure such physical abilities

    as static strength, dynamic strength, body coordination, and stamina.

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    What HRD at UST practices according to the answers of HR Manager & Policy

    objectives, is that; the selection is related to performance of employees rather than the

    turnover of employees, which reflects a real problem of spending efforts, time & money

    for hiring employee without taking in considerations the period of time those employees

    will stay working for the organization.

    From the prospective of quantifying the performance measurements in HRD selection

    Procedures, it is obvious that they concentrate on the traditional job-related, motor

    physical, performance tests, biographical tests, and interviews with candiadtes, which

    are a good methods but those methods should be improved to the extents of hiring

    employees for educational purposes, not just hiring employees to do what they are

    ordered to do.

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    3.5 Selection Methods' Considerations (Q4)

    There are many issues which need to be considered before the management

    decide on the selection tool these issues are:-

    Standardization: Uniformity of procedures and conditions related to

    administering tests (R. Wayne Monday 2014).

    On the other hand, it is the degree to which a validity of a selection method

    established in one context extends to other context.

    Objectivity: Condition that is achieved when everyone scoring a given test

    obtains the same results.

    - Objective measures are rules used to assign numbers to attribute are

    predetermined, communicated, and applied through a system. While;

    - Subjective measures are scoring system is more elusive, often involving a

    rater who assigns the numbers. (Heneman III, Judge, Muller-2012 with

    modification).

    From that point of view, it is important for a tool to be objective not

    subjective.

    Norm: Frame of reference for comparing an applicants performance with that of

    others. (R. Wayne Monday 2014).

    With nominal scale a given attribute is categorized and numbers are assigned to

    categories.

    Reliability:

    The term reliability refers to consistency. Assessment reliability is demonstrated

    by the consistency of scores obtained when the same applicants are reexamined

    with the same or equivalent form of an assessment (e.g., a test of keyboarding

    skills). No assessment procedure is perfectly consistent. If an applicants

    keyboarding skills are measured on two separate occasions, the two scores (e.g.,

    net words per minute) are likely to differ.

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    Reliability reflects the extent to which these individual score differences are due

    to true differences in the competency being assessed and the extent to which

    they are due to chance, or random, errors. Common sources of such error include

    variations in:

    Applicants mental or physical state (e.g., the applicants level of

    motivation, alertness, or anxiety at the time of testing).

    Assessment administration (e.g., instructions to applicants, time limits,

    use of calculators or other resources).

    Measurement conditions (e.g., lighting, temperature, noise level, visual

    distractions).

    Scoring procedures (e.g., raters who evaluate applicant performance in

    interviews, assessment center exercises, writing tests)

    A goal of good selection test is to minimize random sources of error. As a

    general rule, the smaller the amount of error, the higher the reliability.

    Reliability is expressed as a positive decimal number ranging from 0 to 1.00,

    where 0 means the scores consist entirely of error. A reliability of 1.00 would

    mean the scores are free of any random error. In practice, scores always contain

    some amount of error and their reliabilities are less than 1.00. For most selection

    applications, reliabilities above.70 are likely to be regarded as acceptable.

    The practical importance of consistency in assessment scores is they are used to

    make important decisions about people. As an example, assume two agencies use

    similar versions of a writing skills test to hire entry-level technical writers.

    Imagine the consequences if the test scores were so inconsistent (unreliable)

    applicants who applied at both agencies received low scores on one test but much

    higher scores on the other. The decision to hire an applicant might depend more

    on the reliability of the assessments than his or her actual writing skills.

    Reliability is also important when deciding which tool to use for a given purpose.

    Validity:

    Validity is defined as an Extent to which a test measures what it claims to

    measure. (R. Wayne Monday 2014).

    Or it refers to the relationship between performance on an assessment and

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    performance on the job.

    Validity is the most important issue to consider when deciding whether to use a

    particular selection tool because a test that does not provide useful information

    about how an individual will perform on the job is of no value to the

    organization.

    There are different types of validity evidence. Which type is most appropriate will

    depend on how the assessment method is used in making an employment

    decision. For example, if a work sample test is designed to mimic the actual tasks

    performed on the job, then a content validity approach may be needed to establish

    the content of the test matches in a convincing way the content of the job, as

    identified by a job analysis. If a personality test is intended to forecast the job

    success of applicants for a customer service position, then evidence of predictive

    validity may be needed to show scores on the personality test are related to

    subsequent performance on the job.

    The most commonly used measure of predictive validity is a correlation (or

    validity) coefficient. (Heneman III, Judge, Muller-2012).

    Correlation coefficients range in absolute value from 0 to 1.00. A correlation of

    1.00 (or -1.00) indicates two measures (e.g., test scores and job performance

    ratings) are perfectly related. In such a case, you could perfectly predict the actual

    job performance of each applicant based on a single test score. A correlation of 0

    indicates two measures are unrelated. In practice, validity coefficients for a single

    assessment rarely exceed .50. A validity coefficient of .30 or higher is generally

    considered useful for most circumstances (Biddle, 2005).

    When multiple selection tools are used, you can consider the combined validity of

    the tools. To the extent the selection tools measure different job-related factors

    (e.g., reasoning ability and honesty) each tool will provide unique information

    about the applicants ability to perform the job. Used together, the tools can more

    accurately predict the applicants job performance than either tool used alone. The

    amount of predictive validity one tool adds relative to another is often referred to

    as the incremental validity of the tool. The incremental validity of a test is

    important to know because even if an test has low validity by itself, it has the

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    potential to add significantly to the prediction of job performance when joined

    with another measure.

    Just as assessment tools differ with respect to reliability, they also differ with

    respect to validity.

    The following table (3.1) provides the estimated validities of various assessment

    methods for predicting job performance (represented by the validity coefficient),

    as well as the incremental validity gained from combining each with a test of

    general cognitive ability.

    Cognitive ability tests are used as the baseline because they are among the least

    expensive measures to administer and the most valid for the greatest variety of

    jobs. The second column is the correlation of the combined tools with job

    performance, or how well they collectively relate to job performance.

    The last column shows the percent increase in validity from combining the tool

    with a measure of general cognitive ability. For example, cognitive ability tests

    have an estimated validity of .51 and work sample tests have an estimated validity

    of .54. When combined, the two methods have an estimated validity of .63, an

    increase of 24%above and beyond what a cognitive ability test used alone could

    provide.

    Table 3.1: Validity of Various Assessment Tools Alone and in Combination

    Source: Schmidt & Hunter (1998). Copyright 1998 by the American Psychological Association.

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    3.6 Test Validation (Q5 & 6)

    From Evidence-Based HR this process is important to evaluate the

    strengths or weaknesses of the candidate by using the selection test,

    the steps of test validation are:-

    1. Analyze the job and write job descriptions and job

    specifications.

    2. Choose the tests that measure the attributes (predictors)

    important for job success.

    3. Administer the test selected to old or new employees for

    concurrent and predictive validation.

    4. Relate test scores and criteria through a correlation analysis,

    which shows the degree of statistical relationship between (1)

    scores on the test and (2) job performance.

    5. Cross-validate and revalidate by performing Steps 3 and 4 on a

    new sample of employees. Testing guidelines: 1) use tests as

    supplements; 2) validate the tests; 3) analyze all your current

    hiring and promotion standards; 4) keep accurate records; 5)

    begin your validation program now; 6) use a certified

    psychologist; and 7) test conditions are important.

    3.6.1 Important Note: Avoide Bias

    Bias usually occurs in two ways:

    1. how the test measures the trait, and

    2. the predictions made with the test results.

    So, it is important for Employers to be careful to avoid bias

    whenever possible.

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    3.7 Utility Analysis (Q6 & 5)

    Knowing the test is reliabe and valid is important, but one must also

    consider the practical use of the test.

    The practical use of the test is to decide that the candidate is eligible

    for hiring based on the result of the selection tool.

    By completing a utility analysis which shows the degree to which a

    selection test improves the quality of those selected versus what decision

    would have been made without it. Utility analysis usually includes the

    1) validity of the measures, 2) a measure of job performance in dollars, 3)

    the applicants average test scores, 4) the cost of the measure and 5) the

    number of applicants tested and selected.

    As HRD Manager mentioned in his answer that "the steps of selection process at

    HRD is applied correctly, and the candidate achieved the required scores of the

    tests, has the requirements mentioned in the job description and meet the

    KSAOs required at job specification, HRD can decide or recommend that the

    candidate is eligible for hiring for the opening position".

    Furthermore, as (Lauren A. Rivera) mentioned in her Article titled; " Hiring

    as Cultural Matching , American Sociological Association 2012" that:

    "cultural similarities between employers and job candidates matter for

    employers hiring decisions. Drawing from 120 interviews with employers as

    well as participant observation of a hiring committee, I argue that hiring is

    more than just a process of skills sorting; it is also a process of cultural

    matchingbetween candidates, evaluators, and firms."

    This provides another indicator "culture" for hiring somebody to do something.

    She added, " Employers sought candidates who were not only competent but

    also culturally similar to themselves in terms of leisure pursuits, experiences,

    and self-presentation styles. Concerns about shared culture were highly salient

    to employers and often outweighed concerns about absolute productivity."

    Which is completely true specially in our culture and community.

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    3.8 Negligent Hiring (Q8)

    negligent hiring is "Liability a company incurs when it fails to conduct a

    reasonable investigation of an applicants background, and then assigns a

    potentially dangerous person to a position in which he or she can inflict harm." (R.

    Wayne Monday 2014).

    An important study and Article conducted by (Leonard Schloss and J. Gregory

    Lahr), titled as Watch Your Back: Smart Hiring and Proper Background

    Checks, Employee Relations Law Journal, Winter 2008,.

    The study highlighted the Proper Background Checks for that employers can

    substantially decrease the risk of such occurrences by methodically following a

    lawful process that thoroughly screens all applicants, and by recognizing warning

    signs indicating that a candidate is not an appropriate hire for the workplace.

    (Leonard Schloss and J. Gregory Lahr) provided practices tips to avoid

    negligent hiring and other liabilities can be held against the company involving

    violence, theft, fraud, or other criminal or tortuous conduct, an employer must be

    vigilant in the hiring process and adhere to a strict practice of fully evaluating

    candidates for employment.

    In the employment application, be sure to obtain the following information:

    1. Whether the candidate is over age 18;

    2. Whether the candidate can provide verification of his legal right to work in the

    company;

    3. The full name of schools attended, major, number of years attended, diploma,

    or degree earned;

    4. Prior and/or current employer contact information, name of supervisor,

    position held, dates of employment, starting and ending salary, and reason for

    leaving last five jobs or last ten years of work history, whichever is longer;

    5. Whether the candidate has been convicted of a felony, and if so, obtain details,

    but advise the candidate that a felony conviction or pending criminal charges

    will not necessarily disqualify him or her from employment;

    6. Whether the candidate, with or without reasonable accommodation, can

    perform the essential functions of the job applied for; and

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    7. Signature certifying that the information is true and correct and that any

    misrepresentation, falsification, or material omission may result in failure to

    receive an offer of employment or, if hired, in dismissal from employment.

    Along with the application, be sure to have the candidate sign a con-sent form

    permitting a reference check and releasing both the hiring employer and former

    employers from liability resulting from the ensuing exchange of information. (The

    release should be drafted broadly so that it includes not only those references

    listed in the application, but all pertinent contacts.)

    When checking references, advise the reference of any applicable immunity

    statutes, particularly now that many states have enacted reference checking

    immunity laws protecting employers from civil liability when giving references in

    good faith. A reference will appreciate knowing that he or she is protected from

    liability by providing honest information regarding the candidates company

    history, and may be more open and revealing with the information he or she

    provides about the candidate.

    During the reference-checking process, document all contacts and attempts, even

    if unsuccessful. Always try to reach the direct supervisor rather than the Human

    Resources (HR) department, but if the supervisor is not available at least contact

    HR to verify factual information.

    When speaking to the reference, sound conversational and not as though a

    checklist is being followed, and take notes during the conversation, but do not

    advise that you are doing sothe reference likely will be more forthcoming if the

    conversation feels casual. Be sure to not ask about any protected information, and

    always conclude by asking if there is anything else the reference can share about

    the candidates work background.

    When conducting a more comprehensive background check and using a vendor to

    do so, be sure to obtain written consent from the candidate and provide him or her

    with a clear and conspicuous written disclosure that a background report may be

    requested. If a consumer report is generated and adverse action will be taken as a

    result of the contents of the report, provide the candidate with a copy of the report

    and a statement of his or her rights prepared by the FTC. If the candidate contends

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    that the report is inaccurate or incomplete, he or she has the opportunity to

    contact the employer and the CRA to dispute or explain what is in the report.

    If the adverse employment decision is final, send the candidate a Notice of

    Adverse Action informing him or her that a final decision has been made and

    containing information required by FRCA, including a copy of the report, a

    summary of his or her rights, and a cover letter. After a reasonable period of time

    has expired (approximately one week), the adverse decision may become final.

    From the above tips, it is clear that negligent hiring and its similarities is a

    liability can be prevented by practicing EFFECTIVELLY the above tips which are

    based on and part of selection process.

    For UST HRD practices a great deal from the above mentioned tips but it is not

    enough to avoid negligent hiring, so they have to be smarter in practicing

    selection methods.

  • Page 47

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Talent Management

    Human resource is one of the most important keys to the success of a business.

    How a business is running very much depends on staff management and

    recognizing potential in employees. It, therefore, is very important task for an

    organization to understand the behavior of a staff and rightly assess their skills in

    order to build up a pool of highly skilled and efficient professionals who are capable

    to take the business to a new height. And it is not a rocket science with a number of

    training institutions offering many programs designed especially for senior level

    executive s and managers endowed with task of managing human resource.

    This assignment is dedicated this small part to discuss issue related to managing

    talent in companies for sustaining their success.

    Part Five

  • Page 48

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    CHPTER (4)

    4.0 TALENT MANAGEMENT

    4.1 Definition & nature of Talent Management

    Talent is only talent if you can use it. This implies that talent has a direct

    relationship to business performance which makes it a strategic asset for future

    success.

    Organizations struggle to crystallize in a meaningful way what they mean by

    talent. According to classical management theory, in order to make something a

    strategic asset, it must be:

    > Valuable

    > Differentiating

    > Hard to imitate.

    The move from personnel to human resources was part of a struggle by

    organizations to make their human capital a strategic asset. Most modern western

    organizations have a number of intangible asset classes that they deliberately try

    to grow into strategic assets, including intellectual property, brands and,of course,

    their human resources. Most corporate reports thank and extol the virtues of their

    employees, but in practice the old claim that people are our most important

    asset is wrong. According to Collins(2001), people are not your most important

    asset: The right people are

    So, Talent management is the use of an integrated set of activities to ensure that

    the organization attracts, retains, motivates and develops the talented people it

    needs now and in the future. (Michael Armstrong, 10e. 2006). As shown in Figure

    (1.4),

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    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    4.2 Benefits of Talent Management

    Talent Management helps enterprises identify, develop, evaluate, motivate, and

    retain workers who have the competencies the enterprise needs to meet its

    business objectives.

    The key Talent Management functions include goal management, competency

    management, performance appraisals, career and development planning, and

    performance management.

    Using these functions, enterprises can:

    Set high-level strategic goals and cascade these goals down throughout the

    enterprise. This ensures that individual objectives are aligned and synchronized

    with the enterprise goals.

    Set up a competency model that is fully integrated with the performance appraisal

    process, enabling managers to evaluate workers competency levels and suggest

    areas for growth.

    Conduct performance appraisals to evaluate individual workers based on goal

    accomplishments and competency attainments. Managers can assess workers

    consistently, identify competency gaps and training needs, and take informed

    decisions concerning compensation.

    Establish a complete performance management process that supports goal setting

    and performance assessment at the enterprise level, and promotes the ability to

    continually analyze and develop strategies to optimize worker performance.

    Develop career paths and development plans across the organization to ensure

    career path progression and to motivate and retain valuable workers.

  • Page 50

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    4.3 The Elements Of Talent Management

    The elements of talent management and their interrelationships are shown in Figure (2.4)

    Talent management starts with the business strategy and what it signifies in terms

    of the talented people required by the organization. Ultimately, its aim is to develop

    and maintain a talent pool consisting of a skilled, engaged and committed workforce.

    Its elements are described below.

    Figure (2.4): The elements of Talent Management.

    Source: Michael Armstrong, 10e. 2006.

  • Page 51

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    4.4 Succession Planning

    'Angela Hills' on her research article title as "

    Succession planning or smart talent management-

    2008" asked this question: What exactly is succession

    planning?

    The answer was; Some consider it similar to the royal line of succession to the

    throne planning who will be the next senior team. For others it spreads wider

    and deeper in the organization helping people cross-skill so there is a well-

    equipped pool of suitably experienced talent for internal recruitment. For some it

    is more of an organization-wide strategy that is focused on ensuring the

    organization is future-proofed it will have the right skills in place to be able

    to grow and perform in a future that is increasingly unpredictable.

    It is all these things but to simplify, it is doing all you can to ensure you have

    the right people in the right jobs at the right time.

    4.5 Techniques of Succession Planning

    (Angela Hills-2008) identified five important techniques in making succession

    strategy work:-

    1. Flex with the future.

    2. The 3Cs of fit: competence, connection and culture.

    3. The magic is in the mix; of three things (Experience - Outside/executive

    coaching - Formal learning experiences).

    4. Involve the talent in the planning.

    5. Cast a wider net.

    From this article's tips, what UST does with its Talent employees is OK, but it should be

    improved to avoid both BAD PERFOROMANCE & TURNOVER.

    THANK YOU

    THE END

  • Page 52

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Table of References

    1. Angelina Hills, " Succession planning or smart talent management" The

    research quoted is in the global Blessing White survey report The State of

    Engagement 2008.

    2. Robert Grossman, Hiring to Fit the Culture, HR Magazine, February 2009, 41

    50.

    3. Murray Barrick and Ryan Zimmerman, Hiring for Retention and Performance,

    Human Resource Management, MarchApril 2009, 183206.

    4. Martha Frase, Smart Selections, HR Magazine, December 2007, 6367.

    5. Adem Golee & Esra Kahya, " A fuzzy model for competency-based employee

    evaluation and selection," Computers & Industrial Engineering 52 (2007),.

    6. Adrian Furham, " HR Professionals Beliefs About, and Knowledge of,

    Assessment Techniques and Psychometric Tests," International Journal of

    Selection and Assessment, Sep-2009,.

    7. Murray Barrick and Ryan Zimmerman, RESEARCH REPORTS, Reducing

    Voluntary, Avoidable Turnover Through Selection," American Sociological

    Association, 2005,.

    8. Jack Welch and Suzy Welch, Hiring Is Hard Work, BusinessWeek, July 7,

    2008, 80.

    9. Nic Paton, Half of Hiring Decisions a Mistake, Say Managers, October 7, 2008,

    www.management-issues.com; Ann Howard and Jehanna Johnson, If You Were

    a Tree What Kind Would You Be? Development Dimensions International

    White Paper, 2008, 111.

    10. Leonard Schloss and J. Gregory Lahr, Watch Your Back: Smart Hiring and

    Proper Background Checks, Employee Relations Law Journal, Winter 2008, 46

    71.

    11. Lin Grensing-Pophal, Hiring Inside or Out, Human Resource Executive Online,

    November 10, 2009, www.hreonline.com 13.

    12. Biddle, D. (2005). Adverse Impact and Test Validation: A Practitioners Guide to

    Valid and Defensible Employment Testing.Burlington, VT: Gower Publishing.

  • Page 53

    HRM Assignment Jan-2014 By: Mansour Al-Assry Supervisor: Dr. Nayel Rashed

    Books

    1. Al-Awdy Najat, "the reality of recruitment system