Research Korner: Ford Motors Company

Managing Cultural Diversity in Crew Resource Management Program: A Research Proposal

Managing Cultural Diversity in Crew Resource Management Program   Research Aims This proposed research attempts to achieve the following objectives: 1.    To illustrate the need for a Crew Resource Training and Management Program in reducing the incidences of accidents and human error in the aviation industry 2.    To analyze the Chinese cultural background (using Cathay Pacific as a case study) in relation to their work and training in the aviation industry 3.    To evaluate the demand for a crew resource management program that shall integrate cultural factors and diversity problems in training using Cathay Pacific as a case study 4.    To recommend a training program that integrates the need for a crew resource training that responds to the cultural diversity in the aviation industry particularly that of China   Research Questions In accordance with the research aims of this proposed study, the following will be asked: 1.    What are the cultural differences of Western and Chinese (Cathay Pacific) aviation workers and crew resource management practices? 2.    What are the needs of the Chinese aviation industry (Cathay Pacific) and how effective is CRM in addressing these problems? 3.    Is there a need for a culturally specific CRM training in Cathay Pacific? 4.    What kind of CRM training program is effective in the Chinese aviation industry?   Introduction According to Salas, Bowers and Edens (2001), the goal of CRM is to improve safety, to reduce human error, and to promote effective teamwork and decision making in aviation. This is because in aviation, accidents and mishaps have been attributed to human error in 60% to 80% of cases (Bowers, et. al., 2001; Freeman & Simmon, 1991). A large part of these are attributable to failures in coordination among cockpit crews (Bowers, et. al., 2001). For example, poor pilot performance and faulty crew resource management (CRM) have been cited as contributing factors in numerous accidents and incidents reported by major airlines during the period covering 1983 to 1985 (U.S. General Accounting Office, 1997). The U.S. General Accounting Office (1997) found that CRM deficiencies (e.g., lack of coordination among cockpit crews, captain's failure to assign tasks to other members, and a lack of effective crew supervision) were a contributing cause in approximately half of accidents that occurred between 1983 and 1985 that involved one or more fatalities. In an effort to manage some of these problems with teamwork and the resulting safety issues, the aviation industry introduced the concept of CRM (Salas, Bowers, & Edens, 2001; Wiener, Kanki, & Helmreich, 1993). CRM was introduced as a way to train aircrews to use all available resources -- equipment, people, and information -- by communicating and coordinating as a team. CRM has been used within the aviation industry for more than 20 years and has undergone several evolutions with varying foci (Helmreich, Merritt, & Wilhelm, 1999; Maurino, 1999). Thus, CRM training is now a global psychological intervention. Johnston (1993) reported that the accident rate in some emerging nations is nearly eight times that in industrialized nations. As a result, CRM has made its way into other cultures. In fact, a body of research is available to CRM training developers that can aid in the development of CRM programs for airlines in other nations. According to Helmreich and his colleagues (Helmreich & Merritt, 1998; Helmreich, Wilhelm et al., 2001), cultural differences often impede the implementation of off-the-shelf CRM programs developed in the United States. Helmreich and Wilhelm (1998) identified four types of culture that influence CRM: national culture of the pilot, professional culture of the pilot, organizational culture, and the organization's safety culture. The professional culture of pilots reflects certain attitudes toward stress, fatigue, and vulnerabilities to stressors that may have an impact on the effectiveness of CRM (Helmreich & Wilhelm, 1998). In addition, Merritt and Helmreich (1996) found a relationship between organizational climate and CRM attitudes. Their study revealed that pilots who endorse organizational climates that the majority view as negative demonstrated less positive CRM attitudes, whereas a positive organizational climate correlated positively to CRM attitudes. The organizational culture also determines the safety culture. Furthermore, it has been shown that national culture plays a powerful role in determining the effectiveness of CRM training programs (Maurino, 1994). Specifically, attitudes that define the core concepts of CRM differ dramatically across national borders (e.g., individualism/collectivism, power distance, uncertainty avoidance, and division of roles between sexes; Hofstede, 1988). As such, initial attempts to apply CRM globally were often unsuccessful because of a failure to recognize the power of national culture (Helmreich, Wilhelm, Klinect, & Merritt, 2001). Finally, anecdotal evidence and reactions to CRM training generally suggest that cross-cultural CRM training can prevent accidents (Kayten, 1993) and that CRM is being applied i n domains outside aviation (Flin, 1995). This body of evidence suggests that successful CRM training depends on many factors outside the program itself, such as cultural sensitivity on training, expectations of trainees depending on their cultural background and values, management support for training, a climate that supports learning, and trainee expectations about and previous experiences with training. As such CRM training cannot be isolated from other factors that influence its success.   Significance of the Study This proposed study seeks to motivate both scientists and practitioners to continue working on understanding human performance in complex environments and providing training and other interventions as solutions. It seeks to present a useful resource book for many professionals and researchers interested in human error and team functioning.   Conceptual Framework The utilization of Kirkpatrick's typology in this proposed study and corresponding revisions serves several important functions within the training evaluation process. First, it has served to organize the type of information that should be collected in the assessment of training. Second, it has served to argue for the added benefit and/or importance of collecting more than one level of evaluation information. Although both points perform important functions, the second has been more difficult to put into practice than has the first. The most popular framework for guiding training evaluations is Kirkpatrick's (1976) typology. Kirkpatrick argued for a multilevel approach to training evaluation consisting of four levels of evaluation: reactions, learning, behavior (i.e., extent of performance change), and results (i.e., degree of impact on organizational effectiveness or mission success). Within recent years, this typology has been expanded by several researchers (Kraiger, Ford, & Salas, 1993; Salas & Cannon-Bowers, 2001). Goldsmith and Kraiger (1997) have built upon this work by describing a method for the structural assessment of an individual learner's knowledge and skill, a method that has been successfully used in aviation research efforts (Kraiger, Salas, & Cannon-Bowers, 1995; Stout, Salas, & Kraiger, 1997).   Methodology This proposed study will use the descriptive approach- utilization of interview, observation and questionnaires in the study. The purpose is to describe the situation as observed by the researcher. The study will determine whether cross-cultural CRM techniques can resolve problems in the aviation industry. Particularly, the integration of personal values, traditions, skills and cultural background of the crew needs to be taken into consideration in devising a crew resource training program.             The primary source of data will come from the research-conducted questionnaire distributed to CRM trainers and strategists, and aviation crews who have undergone CRM training. Secondary data will consist of interviews, published articles from journals, theses and related studies on CRM, trainings and cross-cultural implications of training.             For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals, distribute sampling questionnaires; arrange interviews; and make a content analysis of the collected documentary and verbal material.  Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the management of Crew Resource training in the aviation industry.   References Bowers, C., Burker, S., Salas, E. and Wilson, K. (2001) Team training in the Skies: Does Crew Resource Management (CRM) training work? Human Factors, Vol. 43.   Flin, R. (1995). Crew resource management for teams in the offshore oil industry. Journal of European industrial Training, 19(9), 23-27.   Freeman, C., & Simmon. D.A. (1991). Taxonomy of crew resource management: Information processing domain. In R. S. Jensen (Ed.), Proceedings of the 6th Annual International Symposium on Aviation Psychology (pp. 391-397). Columbus: Ohio State University.   Goldsmith, T., & Kraiger, K. (1997). Structural knowledge assessment and training evaluation. In J. Ford, S. Kozlowski, K. Kraiger, E. Salas, & M. Teachout (Eds.), Improving training effectiveness in work organizations (pp. 19-46). Mahwah, NJ: Erlbaum.   Helmreich, R. L., Merritt, A. C., & Wilhelm, J. A. (1999). The evolution of crew resource management training in commercial aviation. International Journal of Aviation Psychology, 9, 19-32.   Helmreich, R. L., Wilhelm, J. A., Klinect, J. R., & Merritt, A. C. (2001). Culture, error and crew resource management. In B. Salas, C. A. Bowers, & E. Edens (Eds.), improving teamwork in organizations: Applications of resource management training (pp. 305-331). Mahwah, NI: Erlbaum.   Helmreich, R., & Wilhelm, J. (1998). CRM and culture: National, professional, organizational, safety. In Proceedings of the 9th International Symposium on Aviation Psychology (pp. 635-640). Columbus: Ohio State University.   Hofstede, G. (1988). McGregor in southeast Asia. In D. Sinha & H. Kao, Sr. (Eds.), Social values and development: Asian perspectives (pp. 304-314). Thousand Oaks, CA: Sage.   Johnston, N. (1993). CRM: Cross-cultural perspectives. In E. L. Wiener, B. G. Kanki, & R. L. Helmreich (Eds.), Cockpit resource management (pp. 367-398). San Diego: Academic.   Kayten, P. J. (1993). The accident investigator's perspective. In E. L. Wiener, B. G. Kanki, & R. L. Helmreich (Eds.), Cockpit resource management (pp. 283-314). San Diego, CA: Academic.   Kraiger, K., Ford, J. K., & Salas, E. (1993). Application of cognitive, skill-based, and affective theories of learning outcomes to new methods of training evaluation. Journal of Applied Psychology. 78, 311-328.   Kraiger, K., Salas, E., & Cannon-Bowers, J.A. (1995). Measuring knowledge organization as a method for assessing learning during training. Human Performance, 37, 804-816.   Maurino, D. E. (1994). Cross-cultural perspectives in human factors training: Lessons from the ICAO Human Factors Program. International Journal of Aviation Psychology, 4, 173-181.   Maurino, D. E. (1999). Safety prejudices, training practices, and CRM: A mid-point perspective. International Journal of Aviation Psychology, 9, 413-427.   Merritt, A. C., & Helmreich, R. L. (1996, April). CRM: I hate it, what is it? Error, stress, arid culture. Paper presented at the Orient Airlines Association Air Safety Seminar, Jakarta, Indonesia.   Salas, E. Bowers, C. and Edens, E. (2001) (Editors). Improving Teamwork in Organizations: Applications of Resource Management Training. Mahwah, NJ: Lawrence Erlbaum Associates, 356 Pages.   Salas, E., & Cannon-Bowers, J. A. (2001). The science of training: A decade of progress. Annual Review of Psychology, 52, 471-499.   Stout, R. J., Salas, E., & Fowlkes, J. E. (1997). Enhancing teamwork in complex environments through team training. Group Dynamics: Theory, Research, and Practice, 1(2), 169-182.   U.S. General Accounting Office. (1997). Human factors: FAA's guidance and oversight of pilot crew resource management training can be improved (GAO/RCED-98-7). Washington, DC: Author.   Wiener, B. G. Kanki, & R. L. Helmreich (Eds.), Cockpit resource management (pp. 399-420). San Diego, CA: Academic.

Managing Cultural Diversity in Crew Resource Management Program: A Research Proposal

Managing Cultural Diversity in Crew Resource Management Program Research Aims This proposed research attempts to achieve the follow...

THESIS CHAPTER 1 ON INNOVATIVE COMPENSATION STRATEGIES TO FOSTER PERFORMANCE AND RETENTION OF INTERNATIONAL MANAGERS

CHAPTER 1   Introduction             This dissertation study investigates the ability of innovative compensation strategies for the retention of international managers. In studying the ability of compensation to retain and motivate managers, one should take into consideration the social comparison theory offers a different interpretation of high manager compensation. This way, together with skills in finding research evidence and changing practice as a result of research, the study would have a route to close the gap between research and practice and as such makes an essential contribution to improving compensation quality to the international mangers. Compensation among large firms is a common strategy to attract highly deserving individuals into working in their organization. Several studies suggest a clustering of these factors rather than their occurrence as separated values. Effort was highest in organizations that reward it; and, where intrinsics are valued and effort was rewarded, individuals who worked hardest were most satisfied with pay. (Schneider and Olson, 1970) Moreover, persons who are dissatisfied with non-monetary rewards also tend to be dissatisfied with pay. (Monczka et al, 1977) Strong associations and causal relationships have been shown for merit increases, higher job performance, and higher job satisfaction. (Porter and Lawler, 1973; Katzell & Yankelovich, 1975) There was no evidence that people are productive because they are better satisfied.(Greene, 1973) Though there are conflicting empirical findings, most studies have rejected Deci's hypothesis (Deci, 1976) that expectation of reward that is contingent upon performance will decrease intrinsic motivation. (Vecchio, 1982; Schay, 1988) Regardless of race and ethnicity (and for both public and private employees), people seek a mixture of intrinsic and extrinsic rewards in the work place. However, there is some tendency for minorities of lower socio-economic status to favor extrinsic rewards. (Bloom & Barry, 1967; O’Reilly & Roberts, 1973; Shapiro, 1977; Davis & West, 1980) Schay (1988) determined that perceptions of equity are important if a performance-contingent pays system is to work. From her study of a government research and development laboratory, she concluded that level of pay satisfaction was basically predicted by equity perceptions. Women who are secondary wage earners with children look not only for challenging and materially rewarding work, but also jobs that do not make excessive demands (hours, overtime, travel, physical effort). (Martin and Hanson, 1985) Similarly, the strategy for compensation among firms serves as a tool for the retention and motivation of personnel. The admonition that personnel development issues and compensation should not be discussed in the same performance appraisal meeting is contradicted by a more recent study. It was found that salary discussion had its strongest positive impacts when there was a strong need for employee development and clear communications in appraisal meetings. (Meyer, Kay, and French, 1965) Although organization theorists have long recognized that political processes can influence organizational action (Pfeiffer, 1981; Thompson, 1967), the relationships between social and political forces and compensation have not been examined fully in previous research. Of the studies incorporating behavioral variables, most have concentrated on linkages between executive pay and relatively apolitical factors. The development and testing of human capital models (Becker, 1964; Mincer, 1970) represents one research thrust. These models rely on personal attributes like age, experience, education (Deckop, 1988, Finkelstein and Hambrick, 1989; Foster, 1980), and level in the management hierarchy (Lawler and Porter, 1966; Mahoney, 1979; Rajagopalan and Prescott, 1990) to help explain compensation variation. Findings are clearly mixed, with human capital variables often explaining little or no variation in executive pay. Such factors as organizational power and politics, board member attributes and social processes, and group phenomena have not been subjected to similar scrutiny. But, the effects of social and political factors are becoming more apparent as boards of directors have more openly acknowledged the influence that individuals exert over compensation decisions.         This chapter starts with the overview of the study, a brief review the nature of problems, aims and objectives, scope of the study, methodology and limitation of the study.   Overview of the Study This study intends to investigate the ability of innovative compensation strategies for the retention of international managers. In studying the ability of compensation to retain and motivate managers, one should take into consideration the social comparison theory offers a different interpretation of high manager compensation. Festinger (1954) proposed that individuals possess the need to evaluate their opinions, attitudes, abilities, and self-perceptions. To facilitate such evaluations, people look for others who are similar on these dimensions to serve as standards of comparison. This also is a key process in reaching conclusions regarding conditions of equity or inequity. When making comparisons, individuals usually use others for comparison that are seen as slightly more skilled or higher paid than them. Thus, an executive making self-evaluation comparisons will compare to other managers of recognized skill and expertise, and whose recognized value (compensation) is slightly better than their own (Sulls and Miller, 1977). The literature is not as clear regarding social comparisons when a person or committee is arriving at other-valuations, as contrasted to self-valuation. As noted by O'Reilly et al. (1988), however, it seems plausible that compensation committees will make at least one of these choices. They may anchor the comparison to their own salaries, or to the salaries of slightly higher paid mangers. If the salaries of the compensation committee members were higher, then they would likely recommend a higher salary for the manager. If a comparison manager, who is slightly higher, paid, serves as referent, then a higher salary for his or her own manager also is likely. The only time a compensation committee would suggest a lower manager salary is when their own salaries are lower than the managers’. Another facet of this study is the query whether innovative compensation schemes could imbue organizational commitment among the managers. According to McGee and Ford (1987), there are two dimensions to the organizational commitment construct. The first, called "affective" commitment, represents the degree to which an employee exhibits a strong belief in, and acceptance of, the organizations' goals and values; and a willingness to exert considerable effort on behalf of the organization. The second, called "continuance" commitment represents the degree to which an employee exhibits a willingness to continue to work for the organization. (Agarwal and Ramaswami, 1993; Johnston et al., 1990; Kohli, 1989; Teas, 1981).   Statement of the Research Problem This researcher finds the necessity for a study that specifically tackles the improvement of compensation strategies for international managers. This study also intends to explore the factors to be considered in an international firm. Therefore this study attempts to answer the primary query:   What is the impact of current compensation schemes of a certain company in motivating international managers?             Moreover, this dissertation addresses the following sub-questions: 1.            What are the existing compensation schemes of the company? 2.            What is the level of effectiveness of these existing compensation schemes of the company in motivating the international managers? 3.            What is the level of effectiveness of these existing compensation schemes of the company in the organizational commitment of the international managers? 4.            How does international managers perceive a good compensation plan? 5.            What are the possible innovative compensation strategies that could be applicable to the firm?     Aims and Objectives of the Study This dissertation attempts to find ways to help the international business industry in motivating their international managers. It also addresses the need of the international manager to a justifiable compensations plan. The researcher gathered their views regarding the need for improvement. In addition, the current process of implementing ways to improve the factors related to compensation will be analyzed. Organization theorists have long argued that economic models are too constrained and that non-economic factors critically affect managerial compensation processes (Baron and Cook, 1992). These researchers have developed a rich set of alternative models to explain compensation and promotion practices focusing on sociological phenomena, like the relationship between internal labor markets and social stratification (Baron, 1984), the effect of ownership and monitoring by external parties on compensation practices (Finkelstein and Hambrick, 1989), social influence and managerial power (Allen, 1981), and social comparison theory (O'Reilly, Main, and Crystal, 1988). With the exception of innovative tests developed by O'Reilly, Main, and Crystal (1988) and Finkelstein and Hambrick (1988), however, prior research has not attempted to test the applicability of economic and non-economic models of organizational incentives simultaneously.   Significance of the Study The study shall be a welcome addition to the vast field of resources based on personnel administration, particularly in the field of compensation. The study shall point out the need of innovative strategies in order to motivate international managers into upgrading their level of competency as well as to permeate organizational commitment among them. Moreover, the study would be able to help prospective administrative departments of multinational corporations by providing them a concrete study regarding the potential of a compensation system to boost up the performance of the corporations as a whole.   Methodology of the Study             The study shall be using the descriptive research method. It uses observation. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. This descriptive type of research will utilize observations in the study.  To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: Descriptive method of research is to gather information about the present existing condition.  The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.             The research described in this document is based solely on qualitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.             The primary source of data will come from published articles from social science journals, theses and related studies on international businesses in connection to the compensation of their employees. For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals; and make a content analysis of the collected documentary and verbal material.  Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the dealing with the international business in terms of managers compensation plans.   Limitations of the Study A greater understanding of the need for innovative compensation schemes among firms is a fundamental thrust of this paper. The study shall be acquiring information from the international managers themselves as well as from administrative and personnel offices of the respondent firms. Moreover, the study will only be limited to the international managers based in the United States as well as those in Germany. Similarly, only those firms that operate in the USA and Germany shall be considered in the study. This way the findings as well as the conclusion of this research could be considered as competent to formulate recommendations for the improvement of compensation strategies in the United States as well as in Germany.   References:   Agarwal, Sanjeev & Sridhar N. Ramaswami. (1993) Affective organizational commitment of salespeople: An expanded model. Journal of Personal Selling and Sales Management, 13(2): 49-70.   Allen, Michael Patrick (1981) "Power and privilege in the large corporation: Corporate control and managerial compensation." American Journal of Sociology, 86: 1112-1123.   Baron, James N. (1984)"Organizational perspectives on stratification." In Ralph Turner and James Short (eds.), Annual Review of Sociology, 10: 37-69. Palo Alto, CA: Annual Reviews.   Baron, James N., and Karen S. Cook (1992) "Process and outcome: Perspectives on the distribution of rewards in organizations." Administrative Science Quarterly, 37: 191-197.   Bloom, R. and J.R. Barry, (1967) "Determinants of Work Attitudes Among Negroes," Journal of Applied Psychology 51, 291-94;   Creswell, J.W. (1994) Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage.   Davis, C. and J. West, (1980) "Job Reward Preferences of Mexican-American and Anglo Public Employees," Public Productivity Review 4, n.3, 199-209.   Deci, E. (1976) "The Hidden Coats of Rewards," Organization Dynamics 4, 61-72.   Festinger, L. (1954) "A Theory of Social Comparison Processes." Human Relations 7: 117-140.   Finkelstein, Sydney, and Donald C. Hambrick (1988) "Chief executive compensation: A synthesis and reconciliation." Strategic Management Journal, 9: 543-558.   Greene, C. (1973) "Causal Connections Among Manager's Merit Pay, Job Satisfaction, and Performance," Journal of Applied Psychology 58, 95-100.   Johnston, Mark W., A. Parasuraman, Charles M. Futrell & William C. Black. (1990) A longitudinal assessment of the impact of selected organizational influences on salespeople's organizational commitment during early employment. Journal of Marketing Research, 27(August): 333-344.   Katzell, R. and D. Yankelovich. (1975) Work and Productivity and Job Satisfaction: An Evaluation of Policy-Related Research, New York University, Psychological Corporation, New York. Chap. 8.   Kohli, Ajay K. (1989) Effects of supervisory behavior: The role of individual differences among salespeople. Journal of Marketing, 53(October): 40-50.   Martin, J. and S. Hanson, (1985) "Sex, Family Wage-Earning Status and Satisfaction With Work," Work and Occupations 12, n.1, 91-109.   McGee, Gail W. & Robert C. Ford. (1987) Two (or more?) dimensions of organizational commitment: reexamination of the affective and continuance commitment scales. Journal of Applied Psychology, 72(November): 638-642.   Meyer, H., E. Kay, and J. French, (1965) "Split Roles in Performance Appraisal," Harvard Business Review 43, 123-29;   Monczka, R., L. Foster, W. Reif, and J. Neustrom. (1977) "Pay and Satisfaction: Money Is Not the Only Answer," Compensation Review 9, n.4, 22-8.   O'Reilly, C. and K. Roberts. (1973) "Job Satisfaction Among Whites and Nonwhites: A Cross Cultural Approach," Journal of Applied Psychology 62 (June), 295-99;   O'Reilly, C.A. III, B.G. Main, and G.S. Crystal. (1988) "CEO Compensation as Tournament and Social Comparison: A Tale of Two Theories." Administrative Science Quarterly 33: 257-274.   Porter, L. and E. Lawler (1973) Managerial Attitudes and Performance, (Homewood, IL. Irwin/Dorsey, 1968); W. Ronan and G. Organt, "Determinants of Pay and Pay Satisfaction," Personnel Psychology 26, n.4, 503-20;   Prince, J. and E. Lawler, (1986) "Does Salary Discussion Hurt the Developmental Performance Appraisal?" Organizational Behavior and Human Decision Processes 37, 357-75.   Schay, B. (1988) "Effects of Performance-Contingent Pay on Employee Attitudes," Public Personnel Management 17, n.2, 237-50.   Schneider and L. Olson. (1970) "Effort as a Correlate of Organizational Reward System and Individual Values," Personnel Psychology 23, n.3, 313-26.   Shapiro, G. (1977) "Racial Difference in the Value of Job Rewards," Social Forces 56 (September), 21-8;   Sulls, J., and R. Miller. (1977) Social Comparison Processes: Theoretical and Empirical Perspectives. Washington, DC.: Hemisphere.   Teas, Kenneth R. (1981) An empirical test of models of salespersons' job expectancy and instrumentality perceptions. Journal of Marketing Research, 18(May): 209-26.   Vecchio, R. (1982) "The Contingent--Noncontingent Compensation Controversy: An Attempt at a Resolution," Human Relations 35, n.6, 449-62

THESIS CHAPTER 1 ON INNOVATIVE COMPENSATION STRATEGIES TO FOSTER PERFORMANCE AND RETENTION OF INTERNATIONAL MANAGERS

CHAPTER 1 Introduction This dissertation study investigates the ability of innovative compensation strategies for the r...

Thesis Chapters 1 & 3 on The Validity and Reliability used by Organizations in Selection Procedures from a European Prospective

The Validity and Reliability used by organizations in selection procedures from a European Prospective   CHAPTER 1   Introduction             In business, Human Resources Department (HRD) is one of the highly critical departments that operate with a great deal of expectations from the higher management. This department is rigidly implementing all selection process able to squeeze the best applicant who is best suited for the available job or jobs. The function of recruitment is obviously a fundamental part of any personnel program that aims to put a superior group of persons at the disposal of each appointing officer (Klein, 1940). Without at least some superior individuals in the competing group, the best that can be hoped for in the eligible list is a high level of mediocrity (Klein, 1940). For both reasons the nature of the presentation is highly important to the agency administering the merit program, to the operating department seeking both personnel and public acceptance of its program, and to the profession or special field involved (Klein, 1940). In fact, learning and the application of learning to the job have emerged as a key aspect of applied psychological approaches to work (Ford, 1991). The development of a successful training and recruitment ideology is an iterative process that cycles through theory and application (Ford, 1991).  However, generally, organizational failure is not one of life's great mysteries; reasons for it tend to be pretty straightforward (Klein, 2000). To an organization, its design is the same thing as is the physiology to a living organism. The design gives the organization its repertoire and its capabilities; it is both the current identity and the future potential of the organization (Ford, 2000). In the business setting however, there exist an organizational design where a department hires new personnel for the company. Effective Human Resources Management means that they were able to produce more often highly qualified personnel. Putting a person in a specified job is critical because no one knows what this person may do in the company weather it would be beneficial or a problem. Hiring process is not that easy because the Human Resources Management (HRM) should track down the best-qualified personnel from the very start while he or she is applying up to the actual job performance in the company. On the other hand, while costly, neglect of organizational design is perfectly understandable. The organization forms in order to do something: not simply to display itself as a capable, well-qualified assemblage. Furthermore, as the organization develops, these purposes can change (Ford, 2000). There are steps that the companies provide for the applicants to prove themselves that they are worth full for the company’s acceptance. The selection process or the hiring process has never been easy for the company. It is due to certain factors that may affect the workforce. Basically not all applicants are qualified and even the qualified ones may still encounter problems regarding to their capabilities, work habits, and background. It is most common for the company to give the applicants a certain type of a written examination that will measure their Intelligent Quotient (IQ). This exam may be divided in different subject for example Math, Science, Literature, and even abstract reasoning. In the lexicon of organizations, "training and evaluation" tend to be linked, functionally as well as by nomenclature (Klein, 2000). One reason may be that evaluation not only concerns the effectiveness of the response to training but also continues the training process itself, by imparting information crucial to job performance (Klein, 2000). Psychometric Exams are also given also by the industrial psychologists of the company. This type of exam characterizes the applicants’ aptitude, attitude towards work, the ability to handle pressure, outlook in life, norms and even psychological capabilities. The way these exams were given is through questions like choosing between apple and grapes, what do the person preferred a large spider or the small one. There are no correct and wrong answers in these exams but points were given and corresponding personality types are shown for each level of points.             Conceptual Framework This study will utilize on how can be the Human Resources Management be competitive in producing the best-qualified applicants for the company. Psychologist and even Managers are strict in selecting the applicants, stages in this kind of selection are being done to squeeze up a few deserving people. Studies of some reliable sources regarding personality and selection process are being gathered and carefully analyzed for the understanding of the reader.   Statement of the Problem: This study will attempt to answer the following questions: 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Is there a correlation between recruitment 	needs and the candidate selection procedure?</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Why is selection important as well as the 	consequences of not selecting the right candidates?</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What caused the selection procedure to be 	unreliable?</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Could psychometric test be beneficial in 	the selection of the candidates?</li> Hypothesis             This study attempts to prove the following null hypothesis: 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	There is a positive correlation between the 	recruitment needs and the candidate selection procedure in a way that the 	company should hire the best-qualified personnel for the company.</li> 	<li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Improper coordination and lack of knowledge 	of the process is directly related to procedure unreliability.</li> Scope and Delimitation This study will tackle the validity and the reliability of psychometric test and the process in which the applicants under go during the time they are applying for a certain position.  The coverage of this study is the European perspective. Basically the individual differences of humans make such selection be critical as is. This study will be limited to the test done by professional people. The limitation of this study only covers the selection and hiring process in some companies. This does not evaluate on the bias side of the their professional studies. It only covers the process itself on how it can be beneficial to the company. Significance of the Study This study is an attempt to illustrate the Validity of Psychometric test and even the reliability of the traditional selection and hiring process by the Human Resources Department of any company. This will also be an informative guide for students, professors, managers and even the whole Human Resources Department. Further, this analysis will be beneficial for companies that maybe suffering to a low production of less qualified applicants in the company. Definition of Terms Human Resources Management - Human resources management is organizing, guiding, providing resources for, and interacting with employees Employee Behavior- Actions of an employee Employment Test - Any and all measurements of an applicant's capacity to perform job-related duties. On-the-Job Training - Training provided to an employee as the employee performs his or her job duties. Orientation - The introduction of a new employee into his or her job and the organization Probationary Period - A period of time that should be used to ensure that the applicant selected is qualified to perform the job and achieve regular status. During this period of time, you should carefully evaluate the employee's performance and suitability. Recruitment - The process of locating, identifying and attracting capable job candidates. Selection - The process of screening job applicants to ensure that the most appropriate candidates are hired.                 CHAPTER III METHOD AND PROCEDURE             This chapter will discuss the method of research to be used, the respondents of the study, the sampling technique, the instrument to be used, the validation of the instrument, the administration of the of the instrument and the statistical treatment of the data that will be gathered. In this study, the researcher will use the descriptive method of research. This method will be adopted to find out what was the actual situation of the study within the specified period covered by study. The primary source of data will come from a researcher-made survey questionnaire, which will be given to the respondents.  The respondents of this study will be randomly selected human resource personnel involved in the recruitment process of selected corporations.             The secondary sources of data will come from published articles from business and psychology journals, theses and related studies on recruitment and its effects on organizational design and effectiveness. For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals, distribute sampling questionnaires; arrange interviews; and make a content analysis of the collected documentary and verbal material.  Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the dealing with recruitment in the business setting.  Sample and Sampling Techniques The general population of the study will be composed of human resource personnel particularly those involved in the recruitment of personnel. Moreover, the recruitment strategists will also be included. A total of one hundred fifty (150) will be used for this research. The sampling technique that will be used for this study is the purposive method. The purposive sampling method involves a deliberate effort to secure a sample that conforms to some predetermined criteria. Since the study is about recruitment practices, the respondents of the study were top management and human resource executives of selected corporations particularly the recruiting department.   Validation of the Instrument For validation purposes, the researcher will initially submit a survey questionnaire and after approval, the survey will be given to ten human personnel in the selected corporations.  After the survey questionnaire will be answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  The researcher will again examine the content of the survey questionnaire to find out the reliability of the instrument.  The researchers will exclude irrelevant questions and will change words that would be deemed difficult by the respondents, to much simpler terms.   Statistical Treatment of Data In analyzing the given data and in providing a systematic way of organizing, the frequency distribution percentage, ranking and chi-square test were used. 1 Percentage             Percentage is a descriptive statistical term to show the relationship between two magnitudes or the relationship of part to its whole. The formula is:                                     %=F/n X 100                         Where:                                     %=Percentage distribution                                     F= Frequency distribution                                     N=Number of respondents   2 Ranking             Ranking is a statistical method used to reinforce the description of percentage and desire the positional importance of an item, or an individual discussion in a series or rank, this method consists of arranging numbers in decreasing or increasing order or size. Typically, the highest score is written first, followed by the next highest and so on. 3     Arithmetic Mean The arithmetical mean is also simply called the “mean” or the “average”. The formula is: X =fx/N Where: X =mean X= item value N= total respondents on frequency F=frequency ∑=Sum of total t-test 4     Chi-square Test The chi – square test is the versatile statistical test name after the chi – square distribution that is desired under the assumption of a normality of the population. It will find out whether or not an observed proportion is equal to some given ideal or expected proportion.       The chi – square was used in order to determine the significant differences among the respondents perception towards recruitment strategies:       Formula is: X2 =∑(f0 – fe)2 / fe  F=(r-1)(k-1)   Where:   H0=one variable does not depend on the other variable or two variable are independent of each other(Null Hypothesis)         f0 = actual observed frequency       fe =expected or ideal frequency       r=the numer of rows describing on variable       k= the number of columns describing the other variable       x2 = chi – square value       df= degree of freedom       ∑=sum of total 5     Interpretation Guide and Manner of Scoring Using  likert-scale also provides the criteria for the interpretation of data. The concept of the boundary is the following:   Choices              weight             range of value     symbol Very effective           5                  4.5 – 5.5          VE Effective                   4                  3.5 – 4.5           E Not sure                   3                   2.5 – 3.5           NS Some times             2                   1.5 – 2.5           S Not effective            1                   0.5 – 1.5           NE Lower limit inclusive upper limit exclusive formula:      5(VE)n +4(E)M+3(NS)n+2(S)n+1(NE)n XW =          Total respondents   Where :      N= number of particular responses      XW = Weighted mean Division Criteria                         If X2c    X2t ……Accept H0                         If X2c    X2t ……Reject  H0 and Accept Ha                           Where:                                                 X2c  computed X2 value                                                 X2t  Tabular X2 value   The researcher will be assisted by the SPSS in coming up with the statistical analysis for this study.   BIBLIOGRAPHY Ford, Kevin, “Advances in Training Research and Practice: An Historical   Perspective”, In Kaufman, Herbert, Time, Chance, and Organizations:       Natural Selection in a Perilous Environment, Chatham House, 1991   Klein, Alice, Civil Service in Public Welfare: A Discussion of Effective Selection of         Public Social Work Personnel through the Merit System, Russell Sage       Foundation, 1940   Klein, Jonathan, “The Corporate Suicide Mission: The Emergence of         Organizational Purpose “, Corporate Failure by Design: Why           Organizations Are Built to Fail, Quorum Books, 2000   Klein, Jonathan, “The Training and Evaluation of Incompetence“, Corporate        Failure by Design: Why Organizations Are Built to Fail, Quorum Books,            2000

Thesis Chapters 1 & 3 on The Validity and Reliability used by Organizations in Selection Procedures from a European Prospective

The Validity and Reliability used by organizations in selection procedures from a European Prospective CHAPTER 1 Introductio...