Human Resource Restructuring


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Base rate determination under statistical terms is the determination of the level of uncertainty or probability in any case where a certain number of observations are made. This is applied under the human resource field to determine the probability that any selected employee fits the desired qualities through the determination of the marginal distribution.

This is a distribution probability of a single individual/variable and it measures how an individual forecast is different from the average forecast.  The base rate calculation to be applied in percentage should make application of the following formula.

Effective employees/total employees*100=base rate. The higher the base rate, the higher the likelihood of the new predictor to improve on the base rate and vice versa (Jackson & Mathis, 2007).

Predictive validity is a psychometric measure which determines how accurate a measure is predictive of scores on some measure of a certain criterion. The study of this validity requires tests to be administered and the scores to be collected and stored. Later in time, the measure of the criterion (same lot of employees) is also collected and weighed against the old stored scores to rate performance.

Joe could use predictive validity by gathering test score data from already established employees. Thereafter, he can gather current test scores from the same lot of employees. The use of performance evaluation and comparison of data from tests at hiring and thereafter, can show how effective the selection process was in determining performance levels.

The use of the measure is based on assessing employees as job applicants and later correlating their scores as full fledged employees to those scored at inception (Catanzariti, 2005).

However, currently Joe may not have the scores from the old employees inception period. Therefore, in order to demonstrate the significance of selection criteria in relation to employee performance, Joe will have to gather data from new applicants and make comparisons on the same at a later date after administering the same tests at a later date after employment (Catanzariti, 2005).

The use of concurrent validity may also help on the same, however; concurrent validity needs to be conducted immediately at hiring, because in concurrent validity the criterion is measured at the same time when the test is given to prospective employees. The biggest source of discrimination in any restructuring case may probably result from redundancy and related complains, therefore; to avoid any cases of discrimination Joe should make sure that whoever leaves is actually a redundant case (Jackson & Mathis, 2007).



January, 2011 from

Jackson, H. J. and Mathis, L. R. (2007),. Human resource management, Cengage Learning



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