17-6 Hiring The HR department is trying to fill a vacant position for a job with

Question

17-6 Hiring

The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not is to be made. What are the type I and II decision error costs? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager

Explanation / Answer

Lets have a Look on all Decision Errors:-

1.) Type I Decision Errors Costs made by an HR- A Type 1 Error occurs when the organization recruits a person whose fitment has been called into question. This is an expensive situation, which may call for immediate remedial action. The cost of letting go of the wrong recruit, honorably; and the process of re-recruiting a better fit, entails cost, effort and time, and also leads to drop in employee morale.

2.) Type II Decision Error Costs made by an HR- A Type 2 Error explains the lost opportunity on missing out on a suitable candidate. This happens due to various reasons, including lack of information, an overcautious bearing (effort to reduce the Type 1 error.) This is expensive for two reasons: the loss of potential candidate in a resource constrained world; and worse, to lose him/her to a competitor.

Usually CEO Discovers Type II Decision Errors made by an HR in most Companies... It does happen oftenly that HR might loose a Potential Opportunity to find a suitable Candidate which might be suitable candidate for the suitable job profile.

HR Managers Hiring Decision gets impacted due to the fact of changing his Recruiting Plan of Action as well has to make an amendments in terms of his budegts (Financial) on the word of his CEO...

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