HR Case Study Analysis In order to test which method would work best, it is necessary to do some calculations with the numbers Randy and Professor Higgins have generated as an estimate of how much each process would be. In order to compare each method, this current research will use the Dollar Value Gain formula in order to determine which method would prove the best in regards to keeping costs down and optimizing the total dollar gained from the process, considering that one is slightly more reliable than the other. This would allow Randy to see how much potential gain would result from hiring candidates using the two hiring process methods, the interview, and the work sample trial.

The formula for the expected dollar value increase is as follows: NsTrSDyZs-NC. In this equation, T = tenure of selected group in years (assumed to be one year) = 1, Ns = number of applicants selected = 50 and r = correlation between predictor (interview) and job performance, in this case it would be two different sets, one at = .30 correlation between predictor (work sample) and job performance, and the other at = .50. Additionally, SDy = standard deviation of job performance (assumed to be 40% of base pay), Zs = average standard predictor score of selected group = .80 and N = number of applicants = 100. Finally, the C. would also be different for each method, which the interview set at 100 and the work sample set at 150.

Dollar Value Gain from Using Interviews =

50(1)(.30)(4800)(.80) -100(100) = 47,600

Dollar Value Gain from Using Work Samples =

50(1)(.50)(4800)(.80)-100(150) = $81,000

Question 2

With its greater reliability coefficient, it results in a much higher potential dollar gain when calculated with the equation. In fact, the dollar gain would be almost twice that of using the interview process. Ultimately, this means that Randy should think about using the work sampling process as his primary hiring and selection strategy. The research does show that this is an appropriate tool to use when hiring, especially for positions that require customer interaction and structured service and performance tasks (University of California Riverside, 2014). This is especially true for entry positions, like the ice cream makers that Randy would be hiring to service his customers. In these tests, there are cognitive, psychological, and physical assessments that are possible for Randy to observe (Bryan, 2013). Essentially, Randy would be able to see the potential employees in action, working with the equipment, customers, and other team members. Creating work sampling tests need to emulate the actual job as best as they can. This is how Randy can get the most value of the this testing process.
However, before Randy makes a final decision on what process to use, he should create very detailed job descriptions. These job descriptions would help form the backbone of the work sampling test, but would also tell Randy if there were other performance tasks that would not be able to be emulated in the context of the work sampling process. For example, managers and assistant manager positions may require skills…