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Decision errors

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Decision errors

  • What are the Type I and Type II decision errors costs?

In line with the outlined scenario, a type I decision error cost is one in which a qualified candidate who meets the qualification requirements gets wrongly rejected during the verification and screening process. On the other hand, a type II in the above case would be one in which a candidate who does not meet all the verification process requirements gets hired. Such a decision would translate to a type II error.

  • Which decision error is more likely to be discovered by the CEO?

The type of error that is more likely to be discovered by the CEO is type II error. This is because the wrong candidates’ inefficiencies are likely to manifest themselves sooner, and a decision on whether to fire or keep them will have to be made. On the other hand, if a qualified candidate is rejected as a result of type I error, the CEO is unlikely to be aware of the error made by the HR department, especially if they did not take part in the hiring process.

  • How does this affect the HR manager’s hiring decisions?

The recruitment process is an essential undertaking in any organization as a lot of time and resources are invested to ensuring that the right candidate is selected. Besides, the type of candidate selected has a bearing on the organization’s ability to meet its set objectives and goals. Thus in the case of the outlined scenario, the HR manager’s hiring decisions are affected in such a way that their efficiency will be questioned if the wrong candidate is hired. As a result, the management might have to take more control of the hiring process or outsource a third party to carry out the work.

 

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