Suppose you are a hiring manager for a large firm. You have two almost identical resumes for a position. The going rate (salary) for the position is $45,000. The job candidates are both graduates from a state university, same major, about the same age, and same gender (race unknown). The academic background is roughly the same. But one is a good candidate (personality, easy going, a “go-getter”, worth $50,000) but the other is the opposite (worth $40,000). The issue is that you can’t tell them apart from the submitted application dossier documents. Questions: What is the role of asymmetric information in this market? Fully explain this concept as it applies to labor markets.

Suppose you are a hiring manager for a large firm. You have two almost identical resumes for a position. The going rate (salary) for the position is $45,000. The job candidates are both graduates from a state university, same major, about the same age, and same gender (race unknown). The academic background is roughly the same. But one is a good candidate (personality, easy going, a “go-getter”, worth $50,000) but the other is the opposite (worth $40,000). The issue is that you can’t tell them apart from the submitted application dossier documents. Questions: What is the role of asymmetric information in this market? Fully explain this concept as it applies to labor markets.

Understanding Management (MindTap Course List)

10th Edition

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Richard L. Daft, Dorothy Marcic

Chapter15: Managing Quality And Performance

Section: Chapter Questions

Problem 4AL

See similar textbooks

Similar questions

Your old roommate from college was recently let go from his firm during a wave of employee terminations to reduce costs. You two have kept in touch over the six years since school, and he has asked you to help him get a position in the IT organization where you work. You offered to review his resume, make sure that it gets to the "right person," and even put in a good work for him. However, as you read the resume, it is obvious that your friend has greatly exaggerated his accomplishments at his former place of work and even added some IT-related certifications you are sure he never earned. What would you do? Use the five-step decision making process to answer the question.
“Imagine you have a client who is hesitant to commit to a job analysis. She states that the investment of time and money into developing a job analysis for every position isn’t worth it, especially because she thinks that many jobs in the organization will change a lot within the next five years. What might you say to this client?”
PLEASE MAKE SURE THE ANSWER IS CORRECT 100% 1. Which elements are covered in an effective job analysis? The primary and secondary duties of the job The skills and experience required to do the job The specific training and education level needed to perform the job All of the above 2. What are some warning signs to look out for when assessing resumes? Sloppy overall appearance Overemphasis on hobbies or interest outside of works Job changes All of the above
You want to apply for the position of Human Resources Director with a Fortune 1000 company in the field of retailing. The company "would prefer" applicants with at least four years of experience, though others can also apply. You are six months short on the preferred experience. However, you are absolutely confident of yourself and want to convince the recruiter about the same. Keeping in mind the above scenario, create a cover letter that convinces the recruiter about your competency for this job. Also include a resume. Your cover letter and resume must incorporate the following: • The cover letter should be concise and to the point, following the 3-paragraph structure. • The resume should be no more than two pages long, in an appropriate format and following all the standards associated with that format. • The resume must have an impressive, original objective statement and a summary of qualifications. • The resume must include your capabilities and special skills, preferably using…
Salary benchmarking is one of the most effective ways of ensuring that your pay is competitive. Knowing thatyour pay is competitive means that you can respond to employee queries with confidence. However, salarybenchmarking is also one of the least followed processes in HR. A quick check of the recruitment websites will tell you what other people are paying for the same job title – butdoes that mean it is the same job? Is the finance manager of a small housing association doing the same job,and earning the same as the finance manager of a larger manufacturing company? What is the competition likefor finance manager posts? What is happening in the economy that will affect our ability to recruit/retain theseposts? Answering these questions for any post you are considering, will help you to identify what your pay issuesmight be… Consider the following scenario:Ken Butron, a supervisor with Xylo Co. Ltd. (a large manufacturing company), was contemplating taking a joboffer with one of…
When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well.1. Which of the above options is the most ethical choice, and why, Explain?
When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well.1. Which of the above options is the most ethical choice, and why?
Poor hiring decisions can be very costly to employers. When a new hire is terminated or quits, the employer’s investment in acquiring that employee is lost. These costs include recruiting, screening, and training the new employee. How can an employer avoid hiring the wrong person? What factors should be considered in making a hiring decision? How would the employee selection process differ for a high-level, key position versus an entry-level, low-skill position?
You are a Benefits Manager at a privately held, retail organization. In January, you were notified that health insurance premiums have increased, and as a result, changes need to be made to the existing benefit package for the next year. The owners of the company want to keep the employee contribution to health insurance the same and therefore cuts will need to come from other voluntary benefits offerings. Current voluntary benefits include Paid Time Off, Holiday Pay, Life Insurance, Long Term Disability, Dental Insurance, Tuition Reimbursement, and an Employee Assistance Program. what information and data would be good togather make an informed decision regarding the benefits that should be eliminated or reduced for the next benefit year? , assume both the Employee Assistance Program and Tuition Reimbursement benefits were eliminated. What qualitative and quantitative metrics would you recommend tracking to evaluate these actions
To quote a statement from the article, “Firms must understand candidates’ expectations” and craft positions accordingly, “in the same manner in which they tailor their products to customers,”. Should you be in charge of human resources for an IT firm, how will you use this idea to craft a hiring strategy hire potential Engineers?
Read the passage and answer the following questions Harry Davis just finished interviewing a candidate to fill another medical billing specialist opening. As the human resources manager for MedEx, a medical billing company, Harry is concerned about the high turnover rate for the specialists. Turnover is very costly for the company, and Harry is trying to identify ways to lower the turnover rate. The candidate he just interviewed asked Harry if any of the specialists worked from home. Harry informed him that they do not right now, but telecommuting may be an option in the near future. MedEx employs more than medical billing specialists in its office located in a busy downtown metropolitan area. Each specialist works on a group of specific accounts, coding medical records and entering them into the computer system. The specialist position requires an intense 3-week training program to learn the coding system, but once they are proficient at their work, the specialists work independently…
An employer with a pool of applicants for a single available position is interested in testing each applicant’s potential. To help her decide whom she should hire, she should use an _________(achievement/aptitude) test . (fill in the blank)