Corporate Restructuring
Eastern Financial Company recently
experienced a corporate restructuring. Because some new jobs were added and
some old jobs eliminated, many job responsibilities changed. HR hired an
Organizational Development (OD) consultant, Joe, to help moderate the various
changes in the corporate structure.
Because of the restructuring, the
selection criteria used in the past needed to be updated. Joe recommended
additional selection measures and planned to conduct some validation studies of
the old and new selection criteria. Depending on the results of these
validation studies, he recommended eliminating or revising some of the
selection methods used.
1) How would Joe determine the
base rate of successful employees at the company?
2) Based on your view of
predictive validity, how do you think Joe would demonstrate that the old and
new selection criteria at Eastern Financial Company predict job performance
after the corporate restructuring? What steps would Joe need to take to do this?
3) Based on your view of
concurrent validity, when would it be useful to study the concurrent validity
of a measure? Should Joe try to demonstrate concurrent validity?
4) When restructuring, what does
Joe need to keep in mind in order to avoid charges of discrimination when
employees are settled into new positions?
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