The Hidden Characteristics That Face The Market

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The person on the side of the market with hidden characteristics and hidden action has an incentive to say the right thing .as they will promote themselves.signaling is the attempt by the informed side of the market to communicate information that the other side would find valuable .consider signaling in the job market .because some job require abilities that are unobservable on a resume or in an interview,job applicants offer proxy measures,such as years of education ,college grades,and letters of recommendation .a proxy measure is called a signal,which is an observable indicator of some hidden characteristic.a signal is sent by the informed side of the market to the uninformed side and is useful as long as less-qualified applicants face more difficulty sending the same signal.

to identify the best workers,employers try to screen applicants .screening is the attempt by the uninformed party .an initial screen might check each resume for spelling and typographical errors.although not important in themselves,such errors suggest a lack of attention to detail--which could reduce labor productivity .The uninformed party must identify signals that less-productive individuals have more difficulty sending. A signal that can be sent with equal case by all workers ,regardless of their productivity ,does not provide a useful way of screening applicants.but if ,for example,more -productive workers find it easier to graduate from college than do less-productive workers.a college degree is a measure worth using to screen this case,education may be valuable ,not so much because of its direct effect on a worker's productivity ,but simply because it enable employers to distinguish between types of fact , the actual pay increase resulting from a fourth year of college that results in graduation is several times the pay increase from just a third year of college. This finding is consistent with

the screening theory of education.

Identify requirements for staff selection

First of all to identify organisational objectives and needs for recruiting and retaining staff

Secondly ,to review and follow guidance, regulation requirements and organisational policy for staff

recruitment, requirements and numbers

Thirdly to analyse the requirements of the organisation, the needs of those within the service and

the composition of the existing team

Fourthly to analyse the type of candidate needed in terms of their skills, competence, experience

and knowledge

Finally to develop a specification which complies with the service's competences frameworks,

regulatory and legal requirements, including fair criteria for selection

Contribute to the recruitment of staff in accordance with legal,

regulatory and service guidance

step1,to assess information about candidates against specified selection criteria

step2,to involve those who use the services and existing staff appropriately in the selection


sept3,to ensure people with expertise of human resources and the particular area of practice are

involved in the selection process

step4,to provide clear and accurate information about selection decisions which is congruent with

the specified selection criteria

step5,to offer candidates appropriate information at each stage of the selection process, and

feedback about outcomes

step6,to keep accurate records and reports of the selection process which comply with legal,

regulatory and service requirements

step7, to ensure selection process complies with criminal record checking systems, and

registration requirements

step8,to ensure that any agency staff comply with legal, regulatory and service requirements

step9,to share outcomes with relevant people and organisations, including registration bodies

step10 ,to monitor and review the selection process

Success by Selection:

As I see it, Ability + Attitude = Altitude. Without the ability to do the job and the proper attitude to perform, there can be no success. Success by Selection focuses on three core areas requiring some discernment:

Ability: Is the candidate behaviorally suited for the position and do they possess the aptitude to perform as required?

Attitude: The candidate must have the correct attitude to do the job. Attitude is influenced both extrinsically and intrinsically; ensure you understand both the candidate's as well as the culture's motivations to align your candidate on an ideal path for success.

Team Dynamic: Will the candidate work well with the team you have built or are building? many hiring managers only have four qualifications for hiring someone:

You have a pulse (check)

You don't smell bad (check)

You have previous experience in the industry (check)

You make them feel good about themselves (check)


Hiring Mistakes Cost Real Money:

Hiring the wrong people will cost you much more in the end. An average employee makesaround $40,000 / year (USD); apply taxes, benefits, and other related costs you easily arrive at an additional 30% in additional costs, conservatively. This brings the first year's costs to $52,000. Once hired, most bad hires will generally hang around on the balance sheet 12 months before they exit.

Undoubtedly, each addition to the team will have an initial investment of another team member's time involved - whether this be your's, a manager's, supervisor's or co-worker's time in coaching, counseling or directing corrective action. Let's conservatively say three hours a week are invested in this manner, and even assume it is someone of the exact same annual wage ($52,000 / year). If the average employee works 48 weeks of the year (1920 hours), this organization would spend almost $4,000 of another person's time in activities focused on your bad hire. This means your organization is paying someone $4,000 / year to steal timefrom performing team members which could otherwise be spent with customers generating revenue and ensuring customer satisfaction!

Expanding this to a revenue generating position, like a sales representative with a minimal $40,000 / month quota, would cause you to miss $360,000 additional revenue the first year (considering a 3 month ramp with no sales). And what of the potential damage this person might cause in lost customer confidence, angering customers, missing service levels or sales goals?

Poor hiring decisions have real consequences - and you pay for it in real money.

Is Your Organization Good or Great?

Jim Collins, author of Good to Great, observed that great organizations do three things very well when it came to the most important asset company's possess - their people:

Hire the right people

Put them in the correct role

Get the wrong people out

Hiring is more art than science, and certainly more gut-instict than calculations. A good hiring manager requires a crisp understanding of himself or herself, a clear vision of desired outcome and an intuitive knowledge of how an individual's attitude, energy and skill set will impact the rest of the team - ultimately propelling the team to victory or plummeting the team into oblivion (with you in tow).

You can't get hiring right all of the time. Even Jack Welch, the famous CEO of General Electric and author of Winning, thought the best of hiring managers only got it right 50-60 percent of the time. Hiring mistakes can cause you lost sleep, lost revenue, lost customers and even lost jobs (you and/or your top talent). Successfully selecting your teams is where victory begins, and sadly it is often where hiring managers spend the least amount of quality time.

Winning Teams Require a Leader Willing to Win:

Your responsibility is great. By your failure to recognize your own role - be it ignorance or abdication - you steal away another person's ability for success. All people are capable of great things, but it is only with the proper catalyst that this innate talent is realized. At times this comes from you, but more often it comes from you empowering and enabling your teams to be successful - removing the obstacles most mundane-minded managers ignore.

You role as a leader is to ensure this innate capability is recognized, nurtured and ultimately unleashed to help the team achieve victory where so many others have failed. Only when the team members, the organization and the customer win mutually is victory truly achieved.


Care for your team. That means knowing what matters to each member: their health, their partner, their children, their relatives, their interests, their hopes, their fears.

Stay close to your team. At some point, every day, walk around the office and say "Hi" to everyone who works for you. If you're not in the office that day, call and see how people are. This gives you a chance to enquire or encourage and gives them an opportunity to raise issues or make suggestions.

Meet your team. Regularly - daily, weekly or monthly, depending on your place and type of work - have meetings of all the members of the team. Keep these meetings short, focused and action-orientated. Make sure every member of the team contributes in some way and acknowledge that.

Train your team. Every team member should have at least two days training a year. Newer and more senior colleagues should have more. If they don't ask to go on training sessions, suggest some suitable courses.

Grow your team. Through varied experience and regular training, you should be developing each team member to be more and more confident and more skilled.

Inspire your team. Consider making available a motivational quote or story every week or month .

Celebrate with your team. This might be a personal event, such as a member's birthday or anniversary, or a professional occasion, such as completing a project or winning oa contract.

Socialise with your team. Have lunch or an after-work drink with them, especially when a member has a birthday or there's another reason to celebrate.

Set objectives for each team member. As far as possible, these objective such be SMART - Specific Measurable Achievable Resourced Timed.

Review the performance of each team member. At least once a year - at least quarterly for the first year of a new team member - have a review session where you assess performance, give feed-back and agree future objectives and training.

Thank constantly. The words "Thank you" take seconds to say, but mean so much.

Praise constantly. The words "Well done" take seconds to say, but will be long remembered and appreciated.

Communicate constantly. Don't assume that people know what you're doing, still less what you are planning or thinking. Tell them, using all the communication tools to hand: team briefings, electronic newsletters, organisational newspapers.

Eliminate. Too often we do things because they've always been done. Life changes. Consider whether you could stop doing certain things altogether.

Delegate. You don't have to do everything. Develop your team members by training them to do more and trusting them to take over some of the things you've been doing.

Empower. A really effective leader sets clear objectives for his team members, but leaves detailed implementation of these objectives to the discretion and judgement of individual members of the team. As Second World War U.S. General George S. Patton put it: "Don't tell people how to do things. Tell them what to do and let them surprise you with their results".

Facilitate. A confident leader does not try to micro-manage his team, but makes it clear that, if team members need advice or assistance, he is always there to facilitate and support.

Be on time. Always start meetings on time and finish them on time. Natural breaks keep people fresh. Short meetings concentrate the mind.

Be seen. Don't just talk the talk, but walk the walk. So visit each unit or department for which you are responsible on a regular basis. Don't do this unannounced - you are not out to undermine other leaders or catch out staff. So arrange with the unit leader or departmental head when you'll visit and ask him or her to walk round with you.

Make time. Managers are often very busy and this can deter people from approaching you, so make time for people and be approachable. People will appreciate you taking five minutes out of your busy schedule, especially if you act on/listen to what they say.

Really listen. Many of us - especially those who think they are important - don't really listen, but instead think about what they're going to say next. Give the person speaking to you your full attention and really take on board what they are saying. Accept honest criticism. Criticism is hard to take, particularly from a relative, a friend, an acquaintance or a stranger - but it's a powerful tool of learning. Above all, assess criticism on merit, without regard to its originator.

Think strategically. The doers cut a path through the jungle; the managers are behind them sharpening the machetes; the leaders find time to think, climb the nearest tree, and shout "Wrong jungle!" Find time to climb the trees.

Have a mentor or buddy, someone doing similar work in the same or a similar organisation with whom you can regularly and frankly discuss your progress and your problems as a leader.

Have a role model, someone who can inspire you to be a truly great leader. If you can't find one, study Jed Bartlet as the American President in any episode of the television series "The West Wing".

Constantly revisit and review these tips. In his seminal work, "The Seven Habits Of Highly Effective People", Stephen Covey puts it this way: "Sharpen the saw".

Plan your succession. You won't be there forever and you may not be in control of the timing and circumstances of your departure. So start now to mentor and train at least one colleague who could take over from you.

performance management is 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that it is 'a strategy which relates to every activity of the organisation set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organisational context and can vary from organisation to organisation.'

In other words performance management should be:

Strategic - it is about broader issues and longer-term goals

Integrated - it should link various aspects of the business, people management, and individuals and teams.

It should incorporate:

Performance improvement - throughout the organisation, for individual, team and organisational effectiveness

Development - unless there is continuous development of individuals and teams, performance will not improve

Managing behaviour - ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.

Armstrong and Baron stress that at its best performance management is a tool to ensure that managers manage effectively; that they ensure the people or teams they manage:

know and understand what is expected of them

have the skills and ability to deliver on these expectations

are supported by the organisation to develop the capacity to meet these expectations are given feedback on their performance

have the opportunity to discuss and contribute to individual and team aims and objectives.

It is also about ensuring that managers themselves are aware of the impact of their own behaviour on the people they manage and are encouraged to identify and exhibit positive behaviours.

So performance management is about establishing a culture in which individuals and groups take responsibility for the continuous improvement of business processes and of their own skills, behaviour and contributions. It is about sharing expectations. Managers can clarify what they expect individual and teams to do; likewise individuals and teams can communicate their expectations of how they should be managed and what they need to do their jobs. It follows that performance management is about interrelationships and about improving the quality of relationships - between managers and individuals, between managers and teams, between members of teams and so on, and is therefore a joint process. It is also about planning - defining expectations expressed as objectives and in business plans - and about measurement; the old dictum is 'If you can't measure it, you can't manage it'. It should apply to all employees, not just managers, and to teams as much as individuals. It is a continuousprocess, not a one-off event. Last but not least, it is holistic and should pervade every aspect of running an organisation.

Over time, the focus and emphasis of performance has shifted away from individual output to inform development or pay decisions, to individual contribution to organisational objectives through output, behaviour and capability. As such, performance management is now as much about driving engagement and collecting information and data to provide better insight into the drivers of performance as it is about providing information about individuals.

Learning and development

Employee development is the main route followed by most organisations to improved organisational performance, which in turn requires an understanding of the processes and techniques of organisational, team and individual learning. Performance reviews can be regarded as learning events, in which individuals can be encouraged to think about how and in which ways they want to develop. This can lead to the drawing up of a personal development plan (PDP) setting out the actions they propose to take (with the help of others, not least their managers) to develop themselves. To keep development separate from performance and salary discussions, development reviews may be held at other times, for example, on the anniversary of joining an organization.

Increasing emphasis on talent management also means that many organisations are re-defining performance management to align it to the need to identify, nurture and retain talent. Development programmes are reflecting the needs of succession plans and seeking to foster leadership skills. However, too much of an emphasis on talent management may be damaging to overall development needs and every effort needs to be made to ensure that development is inclusive, accessible and focused on developing organisational capability.

Objectives and performance standards

Objectives (some organisations prefer to use 'goals') describe something to be accomplished by individuals, departments and organisations over a period of time. They can be expressed as targets to be met (such as sales) and tasks to be completed by specified dates. They can be work-related, referring to the results to be attained, or personal, taking the form of developmental objectives for individuals. Objectives need to be defined and agreed. They will relate to the overall purpose of the job and define performance areas - all the aspects of the job that contribute to achieving its overall purpose. Targets then need to be set for each performance area, for example, increase 'sales by x per cent', 'reduce wastage by y per cent' …

Alongside objectives are performance standards. They are used when it is not possible to set time-based targets, or when there is a continuing objective which does not change significantly from one review period to the next and is a standing feature of the job. These should be spelled out in quantitative terms if possible, for example, speed of response to requests or meeting defined standards of accuracy.


To management performance effectively, individuals should know on what basis their performance will be measured. Measures should be transparent and applied fairly across the organisation. Ideally there should be a mix of individual and team measures, and measures relevant to both the inputs and the outputs of performance.

The following examples of performance measures are by no means exhaustive as performance measures are highly contextual and often job specific.

Individual output measures:

Achievement of objectives.

Achievement against agreed standards of performance, which might be descriptions of excellent, good, satisfactory or poor performance.

Behaviour, measuring the extent to which individuals exhibit behaviours associated with performance such as respect for others, trust etc.

Specific instances of performance for example commendations for specific pieces of work.

Individual input measures:


Skills and experience and the extent to which news skills are applied in the job.

Potential to develop and/or acquire new skills and progress to next career level.

Behaviours associated with developing and knowledge sharing.

Communication skills and other traits which enhance team roles.

Team measures:

Individual contribution to the team through involvement in cross team projects.

Support for other individuals to achieve their objectives and participation in cross organisation initiatives by providing timely input.

Understanding of team role.

Engagement scores.