The Case for A Strategic HRM

University of Massachusetts Amherst Isenberg School of Management Human Resource Management - Summer Session 2016 Professor: Dr. Samuel Todd Angelo's Pizza The Case for A Strategic HRM By Lewdorsey Williams 1. EXECUTIVE SUMMARY Background Angelo Camero, the owner of Angelo's Pizza is considering expanding his business through franchising because of the success of his business model. Angelo started his pizza shop after having long dreamed of owning a pizza business for many years as a youngster. After graduating from college as a marketing major, he opened his first pizza shop in the Bronx, emphasizing fresh ingredients. Within 5 years, Angelo’s store was a success, and he opened two other stores that were successful as well. Due to the success of his stores he is considering growth through franchising his concept of pizza with fresh ingredients. With just one store and a few of employees, he personally made every decision, watched the cash register, ordered and checked in new supplies, oversaw takeout orders, and personally supervised the service. His concept was successful and it allowed him to expand to three stores. However, he began having problems due to the additional challenges of managing, recruiting, selecting, training, motivating, compensating and developing personnel for leadership positions within the company. Angelo lacked the expertise himself to develop a comprehensive plan to align his business strategy with human resources management, information technology, and finance systems. The expertise and time needed to develop these systems meant he could not effectively manage his three stores and at the same time manage his strategic growth initiative. Although Angelo had hired two managers whom had worked for him for several years at his first store to manage the two new stores, he gave them only minimal training on how to run a store based on the assumption that their experience already provided them with everything they needed to know about effectively managing a store. He was already experiencing human resource management problems, and knew there was no way he could expand the number of stores he owned, or contemplate franchising his idea unless he had a system in place that allowed him to duplicate his management expertise in each new store. He needed a system to provide his new managers or franchisees with the necessary management expertise to run their stores if his growth strategy was to be successful. Structural Issues Impacting Development of a Sustainable Growth Model First, Angelo had no formal training program in place for teaching his new store managers (or franchisees) how to run their stores. Because he had no system in place for training new managers his managers were not adept at managing a store. In addition to having no formal training program for managers, Angelo had several other issues impacting the performance of the shop. Second, Angelo had no formal system in place for finding and hiring good employees and believed that this was his number one problem in implementing a sustainable growth model. Angelo stated that the problem was bad at the hourly employee level. He was churning a lot at the hourly level. Applicants come in and his managers or he would hire them and not spend much time training them causing the good ones would leave in frustration after a few weeks, leaving the bad ones to stay behind.” But in the last 2 years, Angelo’s three stores also went through a total of three store managers. They were just blowing through the door,” as Angelo put it, in part because, without good employees, their workday was brutal. Turnover is very costly, especially for small businesses. According to Dr. Daniel Farrell, and Caryl E. Rusbult, PhD, job satisfaction is best predicted by the reward and cost values of the job, and job commitment was best predicted by a combination of reward and cost values, alternative value, and investment size. Both satisfaction and commitment were correlated with job turnover, but job commitment was more strongly related to turnover than was satisfaction. The results of he study are in complete agreement with the investment model. See Exchange variables as predictors of job satisfaction, job commitment, and turnover: The impact of rewards, costs, alternatives, and investments. Department of Psychology, University of Kentucky, Journal of Organizational Behavior and Human Performance, Volume 28, Issue 1, August 1981, Pages 78-95. The investment model referenced by Dr. Daniel Farrell, and Caryl E. Rusbult, PhD is an organization's investment in human capital which is a term popularized by Gary Becker, an economist from the University of Chicago, and Jacob Mincer that refers to the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value. Management accounting is often concerned with questions of how to model human beings as a capital asset. Human capital is vitally important for an organization's success. See Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J.. Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3): 443–456. (2011) Human capital increases through education and experience. Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458. Human capital is one of the three main components of intellectual capital management in corporate finance, (Goodwill), which in addition to tangible assets comprise the entire value of a company. Human Capital is the value that the employees of a business provide through the application of skills, know-how and expertise. Maddocks, J. & Beaney, M. 2002. See the invisible and intangible. Knowledge Management, March, 16-17. Human Capital is an organization’s combined human capability for solving business problems. Human Capital is inherent in people and cannot be owned by an organization, therefore, human capital leaves an organization when people leave. Human Capital also encompasses how effectively an organization uses its people resources as measured by creativity and innovation. Sveiby, Karl Erik (1997). "The Intangible Asset Monitor". Journal of Human Resource Casting and Accounting. Human Capital is considered the Most Overlooked Asset Class. See http://www.investopedia.com/articles/younginvestors/09/human-capital.asp#axzz1Wb8QpjGs The third area of concern for Angelo is compensation. Compensation is a part of a strategic HRM program and is a vitally important in recruiting, selecting, motivating, training and rewarding employees. Angelo noted that larger companies can also afford to pay better benefits and to train their employees whereas small firms rarely have the resources or the economies of scale to allow outsourcing or to install the big training programs that would enable them to take untrained new employees and turned them into skilled ones. This concern may be addressed by designing, implementing a working capital management plan that can help manage compensation planning to be used in developing a model for sustainable growth. Summary - The need for a Strategic HRM Plan Based on the facts and the research presented herein, Angelo must create a Human Resources Management (HRM) system that aligns with his business objectives internally and externally to create a highly effective business model that produces the human capital to drive business efficiency and create a model for sustainable growth. In order to accomplish this alignment, First, Angelo must design, implement, and manage a strategic HRM plan that will link HRM with strategic business goals and objectives in order to improve business performance. Second Angelo has to develop an organizational culture that fosters innovation and flexibility. Third, Angelo must formulate and execute an HR system with policies and activities that produce the employee competencies and behaviors that the company needs to achieve its strategic aims. High Performing Organizations follow three rules when designing an HRM system that aligns the business with HRM strategically: a. determine which HR deliverables are necessary to achieve strategic performance drivers b. ensure all HR practices reinforce rather than counteract each other, c., make sure that employees have a clear understanding of what they need to help their company succeed. Angelo's should know the basic courses of action that HR will pursue to ensure that the recruiting, selecting, training, appraising, and compensating systems support the company's strategic plan. From these basic courses of action, Angelo can develop an HR Balanced Scorecard which is based on the Balanced Scorecard Approach (Kaplan and Norton). The Balanced Scorecard makes a firm link corporate strategies to financial outcomes in a value chain that considers the impact on the customer, business unit, employee and operations. The HR Scorecard is a framework that connects HR activities to firm strategies by determining which HR deliverables support the mechanisms driving firm performance. All HR components of the HR system architecture are then aligned to achieve stated business objectives. To assist with developing the HR Scorecard, Angelo can use a Strategy Map which is a Graphical Tool summarizing the chain of activities that contribute to the company's success, and also shows employees the big picture of how their performance contributes to achieving the company's overall strategic goals. All along the value chain, the company considers it Systems impact on business units. 2. Five Learning Modules most relevant in this case First, the most important module is strategic HRM (LM9). The goal of LM9 is to expose students to the topic of Strategic Human Resource Management, with the Objectives of enabling students to discuss how HR directors can add value to the firm, discuss how corporate strategy can be aligned with HR, and use episodes of The Office to analyze commonly held perceptions of HR. Because Angelo wants to develop a model for sustainable growth he must first invest in the human capital management plan (HRM) and align that plan with business objectives to achieve sustainable growth. Without a Strategic HRM plan, Angelo's can have a great fabulous recruitment machine, recruit the best potential employees, and even compensate them above market but no one would stay because of the lack of leadership, lack of training and motivation, and lack of strategic alignment. In this case, Strategic HRM is even more critical because the restaurant business is particularly brutal when it comes to turnover. Many restaurants turn over their employees at a rate of 200% to 300% per year so every year, each position might have a series of two to three employees filling it. Turnover for all industries is approximately 16.7 % See http://www.compensationforce.com/2016/04/2015-turnover-rates-by-industry.html Angelo said he was losing two to three employees a month in a high-volume store, and while he should have been filling all the hours in a week with about six employees per store, he was down to only three or four, so he and his managers were really under the gun. This combined with insufficient training and low compensation made it very difficult retain good employees. As we know employee turnover is very costly. However, turnover high turnover of bad employees may be good, while turnover of good employees may hurt the enterprise. See http://www.gallup.com/businessjournal/316/truth-about-turnover.aspx Here, it's clear that the turnover rate hurt Angelo's because of the destabilization factor. Therefor, the need for a strategic HRM is imperative. Second, Learning Module 4, testing and selecting employees the goal of which is to expose students to key topics in Employee Testing and Selecting, with the objectives of enabling students to explain employee selection tests, evaluate and assign particular tests to employment needs, explain the meaning of the terms validity and reliability as they pertain to employment selection tests, distinguish between the validity of certain employment selection tests based upon the evidence, discuss from the applicants perspective, how certain employment selection tests may be viewed negatively when applicants are not selected for jobs, and comment on the relationship between personality and work performance. Having a great strategic HRM system that is perfectly aligned with business objectives is meaningless without the ability to recruit, select, train, and motivate employees to achieve the objectives of the enterprise. In this respect, LM9 and LM4 share a symbiotic relationship in that one is not effective without the other. LM4 helps us understand the Five Factor Model of Personality that can guide us in selecting employees that can better serve the enterprise. In addition, LM4 can help defend against claims of unfair impact employee recruitment, selection, discipline and termination cases. Angelo's should design recruitment processes and personnelselection systems so that he can find the best candidate for the job. Source: Boundless. “The Psychology of Recruiting and Selecting Employees.” Boundless Psychology. Boundless, 26 May. 2016. Retrieved 20 Jun. 2016 from https://www.boundless.com/psychology/textbooks/boundless-psychology-textbook/workplacepsychology-21/workplace-psychology-106/the-psychology-of-recruiting-and-selecting-employees-401-12 LM4 also helps us understand that certain personality traits make employees better performers like 1. Openness to New Experience, 2. Neurotics, 3. Conscientious had the strongest correlation to performance and is generalizable across all measures. planned rigid aims for achievement, 4. Agreeableness, 5. Extroversion. Barrick FFM correlations. Validity mean it actually measures what it's supposed to: Cognitive ability. 1.0 is exact but cognitive is .5 very strong. Reliability the extent to which it measures something the exact same way every time. You can have something valid but not reliable, meaning it can measure performance the likelihhod of excellence in job performance the same way every time. Third, LM6 Training and Developing Employees the goal of which is to expose students to key topics in Training and Developing Employees with the objective of enabling student to compare and contrast the five steps in the training and development process, construct a needs analysis for a given training scenario, analyze training oversights of management in an episode of The Office, and design a training program for frontline employees in a restaurant. Having a great strategic HRM system LM9, perfectly aligned with business objectives, and selecting and recruiting employees LM4 is meaningless unless the employees receive training and development that allows the company to invest in the human capital it needs to maximize efficiency, add value, and give the company a competitive advantage in the market. Designing Effective Training Activities: 3 factors used to choose training: A. Strategic Direction, B. Available Resources. C. Support Managers and Peers.LM6 encompasses 1. Needs Assessment: Org > Person > and Task Analysis. Person must fit between, 2. Ensuring EE readiness for training: Attitudes and Motivation, Basic Skills, 3. Creating A learning Environment: Objectives and outcomes, Meaningful material, practice, feedback, observation of others Administering and Coordinating Program, 4. Ensuring transfer of training: Self Management Strategies, Peer & manager support, 5. Selecting Training Methods: Presentation, hands-on, Group Methods, and 6. Evaluation: Outcome and evaluation design, CBA. Fourth, is Learning Module 7 Performance Management and Appraisal The goal of this learning module is to expose students to key topics in Performance Management and Appraisal the objectives of which is to develop and evaluate a performance appraisal tool for a given situation, list the strengths and weaknesses of the performance appraisal process in your current job according to the related textbook reading, explain and illustrate problems and/or errors that occur in the appraisal process and suggest alternative solutions to maximize both the (1) accuracy of the appraisal and (2) the perceived fairness of it, and to relate performance appraisal to organizational fairness implications. It allows student to creating a training Program, 1. Set Training Objectives, provide focus for training design, informs students what they should know at the end of program, assists in knowledge transfer establishes evaluation parameters, and 3 evaluate outcomes used to evaluate Training Programs. 1. Cognitive Outcomes, 2. Skill Based Outcomes: Motivation, Reaction to Program 3. Affective Outcome - Company Payoff, 4. Results/ROI Objectives and Learning Domains Can be written for all three : Cognitive, Affective, Psychomotor. (Pick and choose depending on deficiency. See http://www.nwlink.com/~donclark/hrd/bloom.html, http://www.stedwards.edu/cte/files/BloomPolygon.pdf, https://www.stedwards.edu/. Focus on Analysis, Synthesis and Evaluation, the highest level of cognitive. 2. Use detailed job description, 3. Develop abbreviated task analysis record form, and 4. compile training programs for jobs The fifth module most important is LM5 Learning Module Case Application which enables students to 3. Plan for mitigating employee intellectual property and property theft. Although finding enough good employees is Angelo's biggest problem, employee theft is also a concern that could severely impact a small business. For example companies in the United States are losing a total of well over $400 billion a year in employee theft. As a rough approximation, that works out to about $9 per employee per day and about $12,000 lost annually. More importantly: Small firms are more likely to have a single person doing several jobs, such as ordering supplies and paying the delivery person. This undercuts the checks and balances managers often strive for to control theft. Furthermore, the risk of stealing goes up dramatically when the business is largely based on cash. In a pizza store, many people come in and buy just one or two slices and a cola for lunch, and almost all pay with cash, not credit cards. Angelo was not just worried about someone stealing cash. They can steal your whole business idea, something he learned from painful experience. He had been planning to open a store in what he thought would be a particularly good location, and was thinking of having one of his current employees manage the store. Instead, it turned out that this employee was, in a manner of speaking, stealing Angelo’s brain—what Angelo knew about customers, suppliers, where to buy pizza dough, where to buy tomato sauce, how much everything should cost, how to furnish the store, where to buy ovens, store layout—everything. This employee soon quit and opened up his own pizza store, not far from where Angelo had planned to open his new store. LM 10: Angelo's Pizza Hiring Plan Profile for Mitigating Theft Selecting employees for Angelo's Pizzas Management and Staff positions the candidate must have the requisite skills and abilities to perform the job well in addition to having the personality attributes of conscientiousness to mitigate the possibility of theft. According to Sean P. Neubert, Rochester Institute of Technology, the most relevant personality trait most important to mitigation of theft in the position is conscientiousness. See http://www.personalityresearch.org/papers/neubert.html. Also, integrity testing can help mitigate employee theft. With estimates of annual economic losses to American business from employee theft ranging from $15 billion to $25 billion per year and as much as 30 percent of all business failures attributable to employee theft, employers are interested in any device or technique that could detect or prevent employee theft. See http://www.hiringstrategies.com/personality_testing.htm Integrity testing is one means of analyzing whether employees are likely to exhibit attitudes that predispose them to commit theft. There are three basic types of integrity tests: overt integrity tests, personality-oriented measures, and clinical measures. Integrity testing is legal under Title VII of the Civil Rights Act of 1964, which states that it is that it is not unlawful for an employer to give and to act upon the results of any professionally developed ability test provided that such test, its administration or action upon the results is not designed, intended or used to discriminate because of race, color, religion, sex or national origin. Section 703(h) of the Act Clearly, Title VII does not prohibit employers from using personality or integrity tests in the workplace. However, the statute is implicated when: (1) an employer uses tests to intentionally discriminate against minorities or (2) the tests have an adverse impact on minorities and are not job-related for the position in question and consistent with business necessity. Therefore, both the personality trait of conscientiousness and integrity testing should be used in this case the mitigate employee theft as long as it has been professionally developed. Integrity tests should be used in addition to non compete agreements. Non-Competition Agreements can also help a business retain valuable employees, protect its confidential information and customers, and prevent unfair competition. See http://www.macelree.com/the-top-10-mistakes-with-non-competition-agreements/ A non compete agreement is enforceable only when there is consideration for hiring new employees. For existing employees, an employer must provide additional value to in exchange for the signing the NonCompete. This additional consideration could be more money, new job responsibilities and titles, new benefits, or a change from “at-will” to “contract-employee” status. While the additional consideration does not have to be of tremendous value, it must provide a real benefit that the employee was not otherwise entitled to receive. However, the non compete agreement must not be overly restrictive in terms of time and distance, meaning that it will be unenforceable restricts an employee from opening the same type of business too far in the future from terminating employment, or it is it restricts similar activities in an unreasonably large territory. Because conscientiousness may be a critical factor in mitigating theft, it will be assessed through a structured interviews, pre-employment survey (questionnaire), criminal background checks, employment references and resume review. The relevant personality assessment tool we will use is a structured interview to assess whether a prospective candidate can be successful for the position. The tool was selected from Table 1 in Ryans and Tippins (2004). In addition, we will evaluate personality constructs that can help predict whether the candidate is likely to be successful in the position. For this, we used the FFM Five Factor Model of Personality correlation study for evaluating prospective job performance (Barrick, Mount, & Judge, 2001). The FFM factors include 1. Openness to New Experience, 2. Neurotics, 3. Conscientious 4. Agreeableness, and 5. Extroversion. Of the five personality traits, conscientious had the strongest correlation to job performance and mitigation of theft that is generalizable across all measures due to that personality type having a planned rigid aim for achievement. (Barrick, Mount, & Judge, 2001), and being seen as a mitigating factor in workplace deviance including theft. Workplace deviance is related to the five-factor model of personality. Interpersonal deviance is negatively correlated with high levels of agreeableness. Organizational workplace deviance is negatively correlated with high levels of conscientiousness and positively correlated with high levels of neuroticism. This implies that individuals who are emotionally stable and conscientious are less likely to withhold effort or steal, whereas those who are agreeable are less likely to be hostile to their coworkers. See http://www.personalityresearch.org/papers/neubert.html. Workplace deviance occurs when an employee voluntarily pursues a course of action that threatens the well-being of the individual or the organization. Examples include stealing, hostile behavior towards coworkers, and withholding effort. Stealing and withholding effort are categorized as organizational deviance, whereas hostile and rude behavior toward coworkers are categorized as interpersonal deviance. Conscientious people are considered more dependable, honest, achievement oriented, thorough, and organized, (Barrick, Mount, & Judge, 2001). The research literature is replete with studies linking conscientiousness with job success. See Job Conditions and Personality: A Longitudinal Assessment of Their Reciprocal Effects Author(s): Melvin L. Kohn and Carmi Schooler Source: The American Journal of Sociology, Vol. 87, No. 6 (May, 1982), pp. 1257-1286 Published by: The University of Chicago Press See http://www.jstor.org/stable/2779361?origin=JSTOR-pdf&seq=1#page_scan_tab_contents Other studies show that conscientiousness is the most important factor for finding and retaining high performing employees. Of the Five Factors, conscientious had the strongest correlation to performance that is generalizable across all measures. General intelligence was also a strong predictor of success. A meta-analysis of selection methods in personnel psychology found that general mental ability was the best overall predictor of job performance and training performance. Schmidt, Frank L.; Hunter, John E., Psychological Bulletin, Vol 124(2), Sep 1998, 262-274. http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&id=1998-10661006&CFID=5257837&CFTOKEN=93267042. We think conscientiousness is an excellent predictors of success for Angelo's Pizza, and together with integrity testing, and criminal background checks will be sufficient to mitigate employee theft. Background checks are legal, but when making personnel decisions, including hiring, retention, promotion, and reassignment, employers but employers should make sure that they comply with regulations in conducting these checks so they do not have disparate. However, any time you use an applicant's or employee's background information to make an employment decision, regardless of how you got the information, you must comply with federal laws that protect applicants and employees from discrimination. That includes discrimination based on race, color, national origin, sex, or religion; disability; genetic information (including family medical history); and age (40 or older). These laws are enforced by the Equal Employment Opportunity Commission (EEOC). However, these alone are not enough, because employees need to feel good about their positions and therefore the workplace environment should be designed to provide and give employees a sense of accomplishment with their work and their contributions to the health of the company being clearly defined and communicated. These together would give an excellent protection against of potential theft of inventory and intellectual property, and other workplace deviance that undermines the effectiveness of Angelo's Pizza. Assessment To assess whether a candidate had a high potential of being successful in the position, we will use the structured interviews, criminal background checks, integrity tests and references. Structured interviews can measure a attitudes towards theft, as well as interpersonal skills, leadership, and collaboration. We will using a standard set of questions and behavioral response anchors to evaluate the candidate. See Attracting and Selecting: What Psychological Research Tells Us, Ann Marie Ryan and Nancy T. Tippins (2004). Situational interview questions focus on a job candidate’s ability to project what their behavior would be in a given situation given the opportunity for theft. Behavioral interview questions include asking interviewees how they behaved in the past in a particular situation (Dressler, 2013). Angelo's Pizza hiring people with good manners - validity and measuring competencies in an interview Angelo's Pizza should use competency-based recruitment measures in the process of recruitment that are based on the ability of candidates to produce anecdotes about their professional experience which can be used as evidence that the candidate has a given competency, which in this case is good manners. See https://www.shrm.org/hr-today/news/hr-magazine/pages/0315-competencies-hiring.aspx, https://en.wikipedia.org/wiki/Competency-based_recruitment, http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3528408/ Our analysis also has already demonstrated that Angelo's Pizza can do a better job of selecting employees who have the competencies most critical to the company's success. In this case since Angelo's needs to hire personnel with good manners, it should and could only be assessed in structured competency based interviews. In this case, prospective employees should be asked to complete a quiz http://etiquette-guide.com/etiquette-quiz/ on their behaviors in past situations and in hypothetical situations. Developing a Behavioral Interviewing Process The steps to develop a behavioral interviewing process include: Identifying which job competencies to focus on during interviews. In order for measures of testing for good manners to be valid it must be validity meaning the test or technique actually measures what it's supposed to. For example Cognitive ability. 1.0 is exact but cognitive is .5 very strong. Reliability the extent to which it measures something the exact same way every time. You can have something valid but not reliable. Can it measure the same way every time. One of the best supported models for measuring personality involves the “Big Five Model,” with its five basic dimensions that capture most of the variation in human personality. The traits include neuroticism/emotional stability, extraversion, openness to experience, agreeableness, and conscientiousness. These five job traits are connected to job performance and are predictors of certain outcomes like avoiding counterproductive behavior, reducing turnover and absenteeism, exhibiting more teamwork and leadership, providing more effective customer service, contributing more citizenship behavior, influencing job satisfaction and commitment to the firm, and enhancing safety. But good manners is correlated positively with Emotional Intelligence. See http://www.fastcompany.com/3047455/hit-the-ground-running/why-emotionally-intelligent-people-are-moresuccessful Emotional intelligence is not a personality trait but a type of intelligence. Beginning in the 20th century, society has viewed intelligence almost exclusively through the lens of intelligence quotient (“IQ”) tests. IQ tests have the advantage of being very reliable, but they are limited in that they measure abstract reasoning and verbal fluency. Emotional intelligence is comprised of four components including the ability to accurately perceive ones own emotions and the emotions of others, having the ability to express their own emotions effectively, understand how their make them think, coping mechanisms, and the ability to understand and analyze their emotions. In addition they need to regulate their emotions to dampen negative emotions and make effective use of positive emotions. It is important to note is a type of intelligence. The marketplace is beginning to recognize the importance of EQ. One survey indicated that 60% of employers would not hire a high IQ candidate with a low EQ. When asked why emotional intelligence is more important than high IQ, employers said that employees with high EQ are more likely to stay calm under pressure, know how to resolve conflict effectively, be empathetic to their team members and react accordingly, lead by example, and make more thoughtful business decisions. See http://www.cornellhrreview.org/personality-tests-in-employment-selection-use-with-caution/. Assessing good manners in an interview is simply a matter of asking questions that test prospective employees ability to remain calm under pressure, regulate their emotions so that to dampen negative emotions and make effective use of positive emotions to resolve potentially stressful situations would be most effective in identifying the best candidate. This method will give us insight into candidates’ judgment in high-pressure situations, while also allowing us to compare their responses side-by-side. Example Interview Questions: A large order comes in, the restaurant is full, and there are 30 hungry customers waiting in line for lunch, and food supply is running out. How would you handle the given situation? a) Apologize for the delay and hand each customer gift card. b) Tell waiting customers they can go elsewhere, or to wait c) Handle each customer individually and explaining the situation. d) Apologize to the customers and tell them we’re doing everything to accommodate them The ideal candidate would display the ability to be pleasant and remain calm by answering interview questions in a positive manner. If candidate chooses b. they are probably not the best choice for the job. Angelo's Pizza hiring effective personnel - validity and measuring competencies in an interview In order to assess a prospective employees effectiveness, Angelo's should conduct structured interviews that can assess the candidate's likely effectiveness on the job. According to research studies, structured interviews are usually more accurate predictors of which applicants will be more effective. See Wiesner, W. H., & Cronshaw, S. F. (1988): A meta-analytic investigation of the impact of interview format and degree of structure on the validity of the employment interview. Journal of Occupational Psychology, 61(4), 275-290. Two major types are of situational questions, and behavioral questions (also known as patterned behavioral description interviews). See Latham, G. P., Saari, L. M., Pursell, E. D., & Campion, M. A. (1980)., Journal of Applied Psychology, 65, 422–427., Janz, T. (1982). Initial comparisons of patterned behavior description interviews versus unstructured interviews reveals that patterned behavioral interview are more accurate predictors of job success. See. Journal of Applied Psychology, 67, 577–580. Both types of questions are based on "critical incidents" that are required to perform the job but they differ in their focus. Critical incidents are relevant tasks that are required for measuring the likelihood of effectiveness on job and can be collected through interviews or surveys with current employees, managers, or subject matter experts In addition, conscientiousness may be a factor in assessing whether a candidate if likely to be more successful. Conscientious people are considered more dependable, achievement oriented, thorough, and organized, (Barrick, Mount, & Judge, 2001). Example Question A large order comes in, the restaurant is full, and there are 30 hungry customers waiting in line for lunch, and food supply is running out. What would you do to remedy the situation? a) b) c) d) Have more fresh delivered for preparation, and help other staff members with the workload This is only the lunch rush hour so tell waiting customers they can go elsewhere, or wait Turn customer away and explain that the restaurant is full. Apologize to the customers and tell them we’re doing everything to accommodate them The ideal candidate would demonstrate the ability to be effective and resourceful in this situation by answering interview questions in a positive manner that allows the restaurant to increase capacity during high volume times. If candidate chooses b. or c. they are probably not the best choice for the job. References 1. Dessler, G. (2013). A framework for human resource management (7th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. 2. What Psychological Research Tells Us, Ann Marie Ryan and Nancy T. Tippins (2004). 3. Schmidt, Frank L.; Hunter, John E., Psychological Bulletin, Vol 124(2), Sep 1998, 262-274. 4. Melvin L. Kohn and Carmi Schooler Source: The American Journal of Sociology, Vol. 87, No. 6 (May, 1982), pp. 1257-1286 Published by: The University of Chicago Press See http://www.jstor.org/stable/2779361?origin=JSTOR-pdf&seq=1#page_scan_tab_contents 6. http://www.personalityresearch.org/papers/neubert.html. 7. https://www.eeoc.gov/eeoc/publications/background_checks_employers.cfm 8. http://www.gallup.com/businessjournal/316/truth-about-turnover.aspx 9. Schmidt, Frank L.; Hunter, John E., Psychological Bulletin, Vol 124(2), Sep 1998, 262-274. http://psycnet.apa.org/index.cfm?fa=buy.optionToBuy&id=1998-10661006&CFID=5257837&CFTOKEN=93267042. 10. http://www.jstor.org/stable/2779361?origin=JSTOR-pdf&seq=1#page_scan_tab_contents 11. http://www.personalityresearch.org/papers/neubert.html. 12. http://www.macelree.com/the-top-10-mistakes-with-non-competition-agreements/ 13. http://www.hiringstrategies.com/personality_testing.htm 14. See Latham, G. P., Saari, L. M., Pursell, E. D., & Campion, M. A. (1980)., Journal of Applied Psychology, 65, 422–427., Janz, T. (1982). 15. http://www.cornellhrreview.org/personality-tests-in-employment-selection-use-with-caution/. 16. http://www.fastcompany.com/3047455/hit-the-ground-running/why-emotionally-intelligent-people-aremore-successful 17. http://etiquette-guide.com/etiquette-quiz/ 18.https://www.shrm.org/hr-today/news/hr-magazine/pages/0315-competencies-hiring.aspx, 19. https://en.wikipedia.org/wiki/Competency-based_recruitment, 20. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3528408/