Midwest Appliances, Inc. Midwest Appliances (MA) is a medium-sized manufacturer of small appliances located in Grand Rapids, Michigan. The firm employs 1,500 persons. Midwest Appliances also has a plant in Gary, Indiana and Youngstown, Ohio. Recently, the firm has been trying to hire a new plant manager for the Youngstown plant. Because of the importance of the position, the firm has used multiple selection techniques. The techniques include: (1) interviews, (2) two cognitive ability tests, (3) graphology. (4) an In- Basket exercise (5) references. (6) a personality test and (1) biographical data. The average validities of these “performance predictors are set forth in Appendix A. attached. MA has had about an average profit and growth record for the industry. But Youngstown has been the real problem plant. Costs are high and there has been a history of labor strikes. Each of the applicants was interviewed by five executives at MA The executives were asked to rank the applicants in their order of preference. The results of these rankings are given in Table 1. The results of the intelligence test are given in Table 2 and the results of the In-Basket exercise are given in Table 3. Reference letters were favorable to all candidates. Based on the interpretation of the personality test, the psychologist ranked the individuals as follows: (1) Roberts, (2) Jones. 3) Taylor (4) Smith, and (5) Williams. One of the psychologist's comments was that Roberts and Jones are quite competitive and ought to take charge well especially when faced with a real challenge. The graphologist was asked to analyze an essay written by each in longhand entitled "The Challenges in Appliance Manufacturing Today." She was asked to select a person most likely to initiate change in a difficulty established situation. Her recommendations were: Outstanding Williams Jones Roberts Acceptable Smith Not Acceptable Taylor Exhibit 1 Biographical Data on the Candidates 1. Pat Smith, assistant plant manager at Youngstown. Age 48. Education: B.S.B.A. (Bachelor of Science, Business Administration), The Ohio State University; M.B.A., Youngstown State University. Has always worked for MA. Is fluent in Japanese. 2. James Williams, assistant plant manager at Grand Rapids. Age 51. Education: high school graduate. Has worked for MA for 10 years. Prior to that, worked for two other appliance manufacturers (six and four years, respectively), and before that a variety of jobs. 3. Yolanda Taylor, assistant plant manager at Gary. Age 41. Education: B.S.B.A., Yale University. Has four years military experience. Worked in appliance sales for competitors for three years and had production experience for competitor for five years. Has worked for MA for six years. Is currently completing an M.B.A. degree (part-time in evenings). 4. Mark Jones, Plant manager of small plant for a very aggressive competitor. Age 36. Education: B.S. in Engineering, University of Florida. Has been employed at present company for 10 years (three years as plant manager). Has four years military experience. 5. Debra Roberts, former plant manager of electrical equipment firm which went bankrupt in Youngstown. Age 58. Education: high school graduate. Worked for prior employer all of her working life. Ran a successful plant for this company, which failed for other reasons. Jones Roberts 4 2 5 4 Table 1 Preferences for Candidates by Five Midwest Appliances Executives Candidates Interviewers' Rankings Smith Williams Taylor President 1 3 5 Leslie Cox Vice president-personnel 3 1 Dale Young Vice-president-production 3 4 2 Kenneth O'Connor Plant manager-Grand Rapids 1 Stanley Hepler Plant manager-Gary Betty Butler Note: 5 = highest rating; 1 = lowest rating 5 1 5 2 2 1 4 5 3 Table 2 Cognitive Ability Test Results at Midwest Appliances Candidate Test (1) Score Test (2) Score Taylor 133 128 Jones 113 116 Roberts 123 118 Smith 130 131 Williams 105 110 Table 3 In-Basket Results Candidate Score Jones 70 Taylor 83 Roberts 59 Smith 92 Williams 68 Note: higher scores indicate better performance Appendix A Average Validities of Alternative Predictors of Performance Predictor Avg. Validity Work Sample Tests .54 Cognitive Ability Tests .53 Job Knowledge Tests 48 Assessment Centers 43 Biographical Inventories 37 Reference Checks .26 Projective Techniques .18 Experience .18 Interview .14 Academic Achievement .11 Interest Inventories .10 Amount of Education .10 Handwriting Analysis. .00 -.01 Age