HRM 565: Human Resource Management
University of Phoenix
One of the most challenging issues in running a successful human resources operation within the airline industry, or any industry for that matter, is hiring qualified individuals who are capable of contributing to the industry for an extended period of time. Said differently, the main challenges in human resources are recruitment, production and retention. In terms of recruitment, the human resources manager must be able to both go after and hire only the most qualified and capable individuals. In terms of production, the human resources manager must have a plan that successfully trains the hired individual in becoming a productive member of the employment team. Finally, retention requires the human resources manager to create a work environment that encourages the hired, productive employee to continue to be productive within the industry. The answer to succeeding at these three roles is both specialized pre-employment screening.
To understand how pre-employment screening needs to work in today's information age, one actually must turn towards the findings and work of several notable economists and the concept of asymmetric information and job market signaling as they apply to the human resources world.
Economist George Akerlof, Michael Spence and Joseph Stiglitz all received the Nobel Prize in Economics in 2001 for their joint research in asymmetric information. Asymmetric information is what occurs when the seller knows more about a product than the buyer. Although all three of these economist's work is technically economic in nature, their ideas and philosophies are applicable to the field of Human Resources. Thus, it is important to read their ...