Job

Analysis and Hiring Decisions at Ovania Chemical

Group Report


1.

Overview of the issue

Ovania Chemical Corporation (Ovania) is a small but competitive chemical company that
produces polyethylene terephthalate (PET) thermoplastic resin as its core product. Its
continued success will require modernization of the facilities, adaptation to new technology and
undertaking a job redesign process for one of its key roles. The most immediate need is for
Ovania management to focus on redesigning the role of System Analyzer (SA), a prestigious,
non-managerial role that is estimated to change in duties and responsibilities by over 70% in the
next two years.

The central issue in this case is the need for Ovania to adopt a strategic human resource
management plan. The plan should focus on formalizing practices to support a rigorous and
thorough job analysis and an equitable selection and recruitment process. Corporations need to
have strong human resource management planning in order to develop human capital and
thereby enhance their competitive advantage (Kulvisaechana, 2005). The integration of a plan
that aligns with evolving business objectives will provide Ovania with a clear understanding of
the changing SA role and its function within the organization.

2.
Analysis of Case: Strengths & Weaknesses

Ovania has numerous strengths on which to build this foundation of formalizing human
resources practices. The company clearly demonstrates elements of a learning organization: a
commitment to redesigning roles to meet the changing needs of the industry and remain
competitive; intentions to promote from within the organization; recruiting the best talent
externally if deemed appropriate; and, a commitment to making decisions fair and objective.

As part of their learning orientation, the company recognizes the SA position will change
over the next two years and that by removing the factors that can be acquired through training;
they focus squarely on candidates skills and abilities (what the candidates bring rather than
what the candidates can learn). This allows the possibility of bringing new perspectives to the
role, while still meeting the critical requirements determined through the job analysis.

Additionally, the management at Ovania is aware of their poor record of employment
discrimination and has the will to change their strategies to encourage minorities and women to
apply for these new positions. This awareness is critical as a first step to overcoming
discriminatory practices in the organization. In this regard, the commitment to ongoing
development is particularly important for women and visible minorities, for whom management
has indicated they want to do a better job of recruiting. Statistically speaking, while
employment equity is now legislated, women1and minorities2 still face disadvantages and
inequities.
1

According to Statistics Canada (2006), womens salaries are substantially lower than those of men.


Ovanias standpoint on training can also enhance the selection process in relation to
ongoing talent management for both internal and external applicants. Given that they are a
specialty company, this position will potentially expand the applicant pool and allow
management to develop specific competencies in the job and/or people. The commitment to
training and development helps to build a culture of openness to ongoing learning which is
important as the company moves from an industrial focus to one which values knowledge and
innovation.

Some potential problems may arise from the decision to eliminate skills that could be
learned. One such issue is that the requirement for lengthy or substantial training could put
Ovania at a competitive disadvantage, as it will take two years to come up to speed. Further,
management is rolling the dice as there is a possibility that someone cannot be trained to do
the work. As a result training costs, in addition to initiating another recruitment process, could
be significant.

In order to avoid this and other issues, the company has made some judicious decisions
in how to address the need to evolve their operations in a competitive market, this includes
hiring two consultants to assist them with the job analysis and using published and standardized
aptitude testing to develop a fair and objective selection process.

Another efficacious consideration for Ovania will be how to engage any relevant union
groups in a discussion of the proposed changes. While it was not specifically mentioned
whether or not unions are present, or whether the company has a good relationship with its
various unionized groups, the absence of it as a factor in the case might suggest that the
relationship (if present) is functioning.

While there are many positive aspects to the process Ovania has undertaken, the
company also has some systemic weaknesses that will need to be addressed through the
implementation of a new strategic human resource management plan.

One issue is that the current job analysis process is flawed. This has led the selection
committee to develop a list of performance dimensions, and to identify critical abilities and
tasks for the role (noted in Appendix A), that may not fully represent the requirements of the
new job. The tasks and skills that have been determined to be critical appear more focused on
the existing role. Further, the selection committee had difficulty determining how best to
combine multiple predictors in order to reach the final cutoff scores to confirm the most
suitable candidates. As a result, the committee has not been able to develop a defensible
process to make their selection decisions.

2

People in a visible minority are nearly twice as likely as others to have low incomes. According to
Statistics Canada (1995), more than a third (36%) of the visible minorities had incomes below the poverty
line, compared with 18% of other Canadians.

Additionally, there is a culture of discrimination and bias in Ovania. Despite their

intention to correct a history of discriminatory hiring practices, the selection committee
demonstrated bias behind closed doors with their doubt of the abilities and credentials of
women and minority candidates.

3.
Recommendations for change

Three recommendations are proposed to the selection committee responsible for the selection
process of the SA position at Ovania:

Recommendation #1: Have the selection committee, in collaboration with HR, conduct a new
job analysis process.

The role of HR is to assist managers by providing education and advice, and by providing
the right tools to ensure continuous improvement in productivity. The HR manager should
initiate a new process of job analysis that follows a more systematic methodology (Schwind,
Das, & Wagar, 2010).

Briefly, there are three phases: 1. preparation in the form of a step-by-step examination
of the organization; 2. collection of the job analysis information, and 3. determination of how to
use the information collected.

In the first phase, the selection committee should thoroughly understand the
organizations character: company objectives, strategies, organizational structure, inputs
(people, material, and procedures) and desired outcomes (Schwind, Das, & Wagar, 2010). It
should also examine how the job relates to others in the organization (Service Canada, 2010).
This examination will help identify critical tasks and content for testing, and attempt to
eliminate discriminatory practices.

The committee should compile a task inventory in the second phase advancing into the
collection of job information. A comprehensive list of sources is needed such as in this case:
industry-specific associations like the Canadian Society for Chemical Technology that maintains a
set of practice competencies for certified chemical technologists; National Occupational
Classification; position descriptions from competitive organizations; equipment designs;
maintenance manuals, training and safety manuals; professional journals and publications, and
internet research (Schwind, Das, & Wagar, 2010). Data can be collected through a variety of
ways including interviews, observation, and Task Sort Questionnaires (Landis, Fogli & Goldberg,
1998).

In the case of Ovania, the committee should interview individuals who are directly
impacted by the role of SA. Such Subject Matter Experts (SME) include supervisors, position
incumbents, subordinates, customers, colleagues who are impacted by this role, those who do
the job in other companies and experts identified in the field (Truxillo, Paronto, Collins, & Sulzer,
2004). A job analysis template will help ensure consistency in data collection. A sample form is
included as Appendix B.

Through this process the committee can identify performance behaviors, critical
competencies, and knowledge, skills and abilities (KSAs). By linking tasks with KSAs they will
develop a legally defensible, content valid selection system (Landis, Fogli & Goldberg, 1998).
The committee should disseminate the gathered information to surveyed employees with lists
of tasks, work aids, and KSAs. This process would help organize the participants thinking and
standardize the approach (Urbanek, 1997).

The selection committee should also reconsider its assessment of what the candidate
must bring to the position versus what can be learned later on through whichever means
deemed appropriate. Using a methodical approach to this bring/learn ratio, Ovania can better
assess the impact of the higher knowledge-based component of the new SA. New educational
requirements may demand established abilities in areas such as oral and written
comprehension. Service Canada (2010) notes that tools like willingness statements can be used
to evaluate other special considerations. In the case of Ovania, this may include a statement of
willingness to work in treatment tanks.

Finally, the process enters the third phase with a determination of how to use the job
analysis information. The selection committee should meet with management to review the
findings, comparing the prior concept of the position to the data collected (Landis, Fogli, &
Goldberg, 1998). If not done earlier, it is at this point that the committee could raise the
question of how to engage the union in the job redesign. Schwind, Das and Wagar (2010) refer
to the importance of garnering union involvement in managing change to foster a smoother
transition.

Recommendation #2: Create a defensible selection process.

In order to establish a defensible selection process for SA at Ovania, it will be necessary
to review and amend the current performance dimensions, to re-examine the skills identified as
critical to the role, to identify additional selection requirements such as education and other
factors, and finally to incorporate a behavioural interview process as the final determining stage.
A new 5-step selection process is outlined in Appendix D that addresses each of these
requirements.

Review and amend performance dimensions:

After a detailed review of the performance dimensions (duties and tasks) as outlined in
the case study, Appendix A Figure 3A, it was noted that the original analysis by the selection
committee did not take into consideration such aspects as the educational requirements of the
new role or any special considerations (such as physical requirements of the job).

In reviewing the performance dimensions following the revised job analysis process, an
over-arching statement related to the key objectives of the job, education and special
requirements for the role were added to the performance dimensions. The revised
performance dimensions can be found in Appendix C Figure 3A (Revised).

It is assumed that after the new job analysis is completed, and the performance
dimensions amended to include educational, occupational and special requirements, that the

role criteria was found to be sufficiently comprehensive for the new SA position. As such, it is
then necessary to re-examine the skills that are deemed most critical in selecting candidates for
the job.

Re-examine Critical Skills:

Following the committees considered approach to not include skills they believe could
be gained through training and development over a two-year period, they developed an initial
list of 12 abilities and tasks, of which six were considered critical. However, previously identified
gaps in the job analysis resulted in the identification of critical skills which were more strongly
related to manual competencies, consistent with the current role, rather than the skills required
to support their future competitive needs. So while they used credible methods, the priority
given to certain skills is questionable.

In relation to the testing of skills, the assumption is that the tests themselves are
reliable and valid as they have been previously standardized; however, reliability does not
ensure that a test is valid or useful.

The case indicates that there is no normative or validity data for the role of SA,
therefore the content validity of the tests is questionable. Validity ensures that the tests
accurately measure what is relevant and intended. In this case, it is clear that the content
validity has not been accurately defined between the tests and the new SA role. While the
occupational testing seems to be measuring the specific basic skills identified by the committee,
there is no testing that simulates the required job environment to ensure that candidates can
adapt to the physical environment that is necessary in the SA role.

Therefore in developing a new selection process, an assumption was made that content
validity of critical skills can be determined by the frequency that they are needed for job tasks.
To re-examine and determine the validity of the critical skills selected, the existing skills list was
compared to the performance dimensions. Skills that were required for more than 50% of the
performance dimensions were deemed to be critical. This resulted in a new list of critical skills
that were finger dexterity, mechanical comprehension, visual pursuit, deductive reasoning and
inductive reasoning. This re-examination of critical skills is the second step in the revised
selection process and is illustrated in Appendix D Figure 3B (Revised). Further, to enhance the
rigor of the selection process the revised critical skills were given priority in the selection
process. The scores associated with the revised critical skills were totaled for each candidate and
the average found for all candidates. Those candidates that had scores greater than the
average were forwarded on to the next phase of the selection process that involves an
assessment of additional selection requirements. This resulted in a reduction from 20 potential
candidates to 10 candidates as illustrated in Appendix D: Figure 3C (Revised) - Step 3.



Additional selection requirements:

As noted in the review of the performance dimensions for the SA role, the original analysis by
the selection committee did not take into consideration such aspects as the educational
requirements of the new role or any special considerations (such as physical requirements of
the job).

Educational attainment as well as the physical demands of role must be addressed. In
particular, working in the treatment tanks was raised as a concern for the role and this ability
must be assessed. However, this should not be considered based on stereotype, as suggested in
the original analysis, but considered based on the candidates statement of willingness and
physical capability.

Once these additional requirements are clearly identified they can be incorporated into the
selection battery as occupational testing. As step 4 of the new selection process, the 10
candidates remaining from the review of critical skills were then screened for education
requirements and occupational testing. It was determined that eighty percent of the candidates
would pass each phase of screening (occupational and education) resulting in a remaining pool
of 6 candidates. These candidates were: Beliveau, Buffett, Egan, Laukitis, Lesko, and Sherman
and the results are summarized in Appendix D: Figure 3C (Revised) Step 4.

Incorporating of behavioural interviews:

The final step in the new selection process is the behavioral interview. This process will enable
the selection committee to assess competencies such as teamwork, cooperation, commitment
to ongoing learning and respect; all of which are critical components to what candidates will
bring to the role. The final results from the behavioral interview process will ideally identify the
top three successful candidates for the position of System Analyzer. The final results of the new
selection process can be seen in Appendix D: Figure 3C (Revised) Step 5.


Recommendation #3: Address the systemic discrimination and bias in the company.

McShane (2006) describes stereotyping as the process of attributing characteristics to
individuals based either on information that can be easily observed, or by their membership in a
particular social category. One of the most significant issues with stereotyping is that it lays the
foundation for discriminatory behavior (McShane, 2006). This issue is evident at Ovania in
their history of employment discrimination charges and the comments made by management
and staff about women and minority groups. This indicates evidence of the systemic culture of
discrimination and bias that still exists in the company.

McShane (2006) recommends three strategies to minimize stereotyping: diversity
awareness, meaningful interaction, and decision-making accountability (p.73). Ovania needs a
comprehensive plan to address the root causes of discrimination within the corporation, in
addition to clear accountabilities for fair hiring practices. Conducting a thorough job analysis as

outlined will help to determine equitable and non-discriminatory selection and recruitment
processes that will mitigate the existing negative organizational culture.

4.
Summary

In conclusion, the recommendation to Ovania Chemical Corporation is to engage HR in a
strategic and formalized process to incorporate a new job analysis process for the SA role in an
attempt to align the business goals with the hiring strategy. This will require conducting a new
job analysis process and creating a defensible selection process.

It is highly recommended that Ovania also establish educational programs and non-
discriminatory practices for recruitment, selection and retention of employees. By using careful
analysis and a clear methodology for redefining the SA role, aligning the recruitment and
selection process with KSAs, and determining content validity, there is the opportunity for this
organization to establish a fair, objective and productive work environment to meet the
demands of a competitive and evolving marketplace.

Ovania may wish to compare the results using test scores from their current process to
the selection results based on the new, more rigorous, analysis and selection process (Appendix
E). The recommendations provide a more defensible and significantly different result.

If Ovania implements the outlined recommendations they will be able to demonstrate
integrated human resources management that will support their business planning objectives
and significantly enhance their competitive advantage.

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