HR Program (Staffing From: Kenny

HR Program (Staffing

From: Kenny Houston (HR Director)

Alan Ben (Chief Executive Officer).

Dear Sir,

Assessment Center Technique Program Proposal

Fundamental objective of this proposal is to discuss the assessment centre technique and its particular importance to our organization when hiring senior level executive. To enhance greater understanding of the assessment center, the proposal provides its brief description.

Description of Assessment Center Technique

The concept assessment center consists of multiple evaluation technique, which includes various types of job related stimulation such as interview, problem analysis, oral exercises, group exercises, and psychological tests. Assessment center technique allows candidates to demonstrate their core skills with reference to job-relevant situation. Typically, assessment centre provides extremely accurate measure to evaluate individual capability and performances. Organizations using assessment center for the selection of senior level executive have been able to achieve higher degree of success and predictability in the selection process. Many organizations have used the assessment center tool for selection purpose. Byham, (2008) argues that assessment center generally demonstrates more fair and objective selection with reference to race, gender and age. Compared to other selection methodologies, assessment center provides unbiased predictions in the selection process. Many organizations started using assessment center technique for the selection of higher level candidates in the early 70s. Organizations such as IBM, PepsiCo, Sun Life, and Nortel have used assessment center to evaluate candidates for president of an organization, general managers, and plant managers. These organizations often employ professional assessors consultant since it is difficult to find highly qualified in-house team who can assess and evaluate candidate objectively. Since 1970s, estimates reveal that more than 2000 organizations use assessment center technique for the selection of candidates for job purpose. Each year, Texas Instruments implements 500 assessments center technique in the United States, Japan, and Europe for the selection of top-level candidates.

There are several benefits of assessment center technique for hiring of senior level professionals. Some of the benefits are described below.

Usefulness of Assessment Center Technique in Senior Level Hiring

There is several usefulness of the assessment center in senior level hiring. First, the assessment center provides objective and standardized methodology in hiring top level executive. By using multiple stimulations in observing candidates, the assessor professionals are able to rate each candidate to the managerial competency. Organizations using assessment center are able to select appropriate senior level candidates for the appropriate senior level positions. Avery and Callow (2010) argue that assessment center has direct impact on organizational profitability since the technique is a powerful tool in enhancing the selection of high quality and best candidate for senior level position. Many organizations using assessment center technique are already reaping the benefits of assessment centre to maximize their investment. Through assessment center, organization could readily predict a candidate for job performance. Organizations could also readily place candidate in the right position based on the candidate performances. Thus, an organization would be able to avoid the costly mistake of placing a candidate on a wrong position. Hagan, et al. (2006) point out that competencies are the building block of an organization, and selection of people with right competent is critical to organizational survival. In the present day competitive global market environment where organizations are being pressured to deliver high quality products within the shortest time, selection of high quality people is very critical to achieve organizational performances. The authors further argue that assessment center is very effectively to determine the competent levels of candidates. Typically, assessment center is a legally defensible selection process since it has been able to eliminate bias in the selection process. By using assessment center in the selection of senior level candidate, an organization could be able to predict the work's performances of employees selected. (Hogarty & Bromley 1996).

"A wealth of research demonstrates the validity of assessment centre findings. For example, one of at&T's studies compared 40 employees promoted using assessment centers with 40 who had been selected by other means. They discovered that two-thirds of the former group was rated above satisfactory in their job performance vs. only one-third selected by other means. With research estimating differences in employee performance to be worth 30% of a role's annual salary, this increase in selection quality has substantial implications for profitability." (Avery and Callow 2010 P. 29).

Based on the cost effectiveness of assessment centers, Amen (2010) argues that assessment centers are valid, cost effective and are seen to be effective in the selection of candidates for management positions. Compared to other selection method, assessment centers could provide better predictor of job performances for prospective candidates.

Despite the usefulness of assessment center in hiring senior level executive, there are some drawbacks identified with the use of assessment center.

Shortcomings of Assessment Center Technique in Senior Level Hiring

Major shortcoming of assessment center is the amount of time required for managers to spend in the selection of right candidates. Typically, managers of organizations using in-house assessment center technique for the selection procedure spend huge amount of time in the selection process. Sometimes, a manager will need to leave his or her job for three or four days to observe participants during the stimulation process. Manager will also need to spend additional one or two days with other observers in order to make a final evaluation.

Pynes & Bernardin (1992) argue that the increasing costs of implementing assessment center often deter many organizations in implementing assessment center technique in the selection of senior level candidate. Typically, it often costs an organization between $2,000 and $5,000 to select a senior level candidate. Moreover, the time spent by the a Psychology manager or Human Resources manger in evaluating candidate often serve as additional costs for organizations. Despite the high cost of implementation assessment center, Pynes et al. (1992) argue that long-term gains of assessment center outweigh its shortcomings. Moreover, may organizations have been able to overcome the costs of time spent by in-house managers by using external professional assessor for the assessment center.

In case Chief Executive Officer (CEO) gives go-ahead, the paper discusses the next step in the assessment center implementation. To enjoy the benefits of assessment centers, there is a need to develop a plan for the assessment centers technique.

Implementation of Assessment Center

Amen (2010) provides the following steps in the implementation of assessment centers. First, an organization should define the purpose and objective to derive from the implementation. This includes stating the right caliber of candidates that an organization intends to employ and competent level of the candidates.

Moreover, organizational support is very important. This includes financial and human resources for the implementation. For further implementation, there is a need to determine relevant exercises and critical abilities. More importantly, there is a need to select and train assessors. Selection and training of assessors is very critical for hiring of appropriate candidates.

Further suggestion is the selection of the assessment center site, which should be convenient for the implementation of the assessment center. Next step is to conduct the assessment center. An organization needs to use multiple evaluations in arriving at valid selection of candidate. Simulation methods such as in-basket exercises, analysis exercise, management games and group discussions are the effective methods in the selection process. For the selection of senior level executive, leadership group exercise is an effective technique to assess leadership.

Pooling information and completing the assessment center report is the next step that involves collating the results of all candidates for selection. The results of the assessment center should be able to provide appropriate, reliable and valid inference of each candidate. Using the results, the assessor should be able to select the right candidate for the right position.