Reference no: EM133043003
Assignment: The demand for skilled, qualified people outpaces supply, and with so many competing for top talent, the initiative to attract highly qualified applicants is more competitive than ever. After screening dozens of applicants and vetting a select few through multiple stages of the hiring process, errors can still occur during applicant selection. Unfortunately, no matter how many questions you ask applicants during an interview, the image they portray may be very different from who they truly are. Statisticians classify decision errors into two categories: Type-I and Type-II. In human resources, a Type-I error, or false positive, occurs when the best hire identified by the selection system is actually the wrong hire However, a Type-II error, or false negative, occurs when the selection system fails to identify the best hire, leading to the rejection of top talent (Ferranti, 2013). Simply put, Type-I is a bad hire, and Type-II is a missed opportunity.
All positions within a company are essential to the organization's mission, and goals but all positions are not equal. Both selection errors have an adverse impact on an organization's productivity, but Type-I errors are the most damaging in terms of resources and productivity. With Type-I error (the bad hire), the process of letting go of a bad hire, honorably, and re-recruiting a better fit, entails additional cost, effort, and time. So you want to avoid this error at all costs with jobs requiring higher levels of education, experience, expertise as they command higher salary and compensation packages. I prefer making a Type-I error in selecting an entry-level employee or temporary hire to minimize its adverse effects and risks on the organization's resources and productivity (Kantrowitz & Dainis, 2014).
Missing out on top talent with Type-II error can be just as costly as a bad hire, especially if a competitor hires them. Still, there is a chance for another opportunity to hire this applicant in the future. Furthermore, the hired applicant can become the best fit for the job through mentorship and professional development. Employees develop loyalty for companies that invest in their professional development.
What external factors would lead you to be more willing to lean toward alpha or beta type error