HRTM Test 2

Workforce Utilization Review

A comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market.

Learning Management System (LMS)

A computer application that automates the administration, development, and delivery of training programs

Virtual Reality

A computer-based technology that provides an interactive, three dimensional learning experience.

Adventure Learning

A teamwork and leadership training program based on the use of challenging, structured outdoor activities

Simulation

A training method that represents a real-life situation, with trainees making decisions resulting in outcomes that mirror what would happen on the job.

Assessment Center

A wide variety of specific selection programs that use multiple selection methods to rate applicants or job incumbents on their management potential.

Apprenticeship

A work-study training method that teaches job skills through a combination of on-the-job training and classroom training.

Readiness for Training

A combination of employee characteristics and positive work environment that permit training.

Protean Career

A career that frequently changes based on changes in the person's interests, abilities, and values and in the work environment

Transitional Matrix

A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Sabbatical

A leave of absence from an organization to renew or develop skills.

Criterion-Related Validity

A measure of validity based on showing a substantial correlation between test scores and job performance scores.

Coach

A peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback

Organization Analysis

A process for determining the appropriateness of training by evaluating the characteristics of the organization

Person Analysis

A process of determining individuals' needs and readiness for training.

Instructional Design

A process of systematically developing training to meet specifi ed needs

Yield Ratio

A ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next

Nondirective Interview

A selection interview in which the interviewer has great discretion in choosing questions to ask each candidate.

Structured Interview

A selection interview that consists of a predetermined set of questions for the interviewer to ask.

Core Competency

A set of knowledge and skills that make the organization superior to competitors and create value for customers.

Behavior Description Interview (BDI)

A structured interview in which the interviewer asks the candidate to describe how he or she handled a type of situation in the past.

Situational Interview

A structured interview in which the interviewer describes a situation likely to arise on the job, then asks the candidate what he or she would do in that situation.

DiSC

Brand of assessment tool that identifi es individuals' behavioral patterns in terms of dominance, infl uence, steadiness, and conscientiousness

Leaderless Group Discussion

An assessment center exercise in which a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period

Mentor

An experienced, productive senior employee who helps develop a less-experienced employee (a protégé)

Training

An organization's planned efforts to help employees acquire job related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job.

Recruiting

Any activity carried on by the organization with the primary purpose of identifying and attracting potential employees

Transfer

Assignment of an employee to a position in a different area of the company, usually in a lateral move.

Promotion

Assignment of an employee to a position with greater challenges, more responsibility, and more authority than in the previous job, usually accompanied by a pay increase

Downward Move

Assignment of an employee to a position with less responsibility and authority.

Realistic Job Preview

Background information about a job's positive and negative qualities.

Glass Ceiling

Circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organizations.

Assessment

Collecting information and providing feedback to employees about their behavior, communication style, or skills.

Electronic Performance Support System (EPSS

Computer application that provides access to skills training, information, and expert advice as needed

Avatars

Computer depictions of trainees, which the trainees manipulate in an online role-play.

Construct Validity

Consistency between a high score on a test and high level of a construct such as intelligence or leadership ability, as well as between mastery of this construct and successful performance of the job.

Content Validity

Consistency between the test items or problems and the kinds of situations or problems that occur on the job

trend analysis

Constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.

Outsourcing

Contracting with another organization to perform a broad set of services.

Multiple-Hurdle Model

Process of arriving at a selection decision by eliminating some candidates at each stage of the selection process

Compensatory Model

Process of arriving at a selection decision in which a very high score on one type of assessment can make up for a low score on another.

Externship

Employee development through a full-time temporary position at another organization.

Employment at Will

Employment principle that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

The extent to which something provides economic value greater than its cost

Federal law requiring employers to verify and maintain records on applicants' legal rights to work in the United States

Communities of Practice

Groups of employees who work together, learn from each other, and develop a common understanding of how to get work accomplished

Job Posting

The process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees.

Feedback

Information employers give employees about their skills and knowledge and where these assets fi t into the organization's plans.

Needs Assessment

The process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary.

Task Analysis

The process of identifying and analyzing tasks to be trained for.

Succession Planning

The process of identifying and tracking high potential employees who will be able to fi ll top management positions when they become vacant.

Leading Indicators

Objective measures that accurately predict future labor demand.

Internship

On-the-job learning sponsored by an educational institution as a component of an academic program

Transfer of Training

On-the-job use of knowledge, skills, and behaviors learned in training

Referrals

People who apply for a vacancy because someone in the organization prompted them to do s

Direct Applicants

People who apply for a vacancy without prompting from the organization.

Due-Process Policies

Policies that formally lay out the steps an employee may take to appeal the employer's decision to terminate that employee.

Myers-Briggs Type Indicator (MBTI)

Psychological test that identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle, providing information for team building and leadership development.

E-Learning

Receiving training via the Internet or the organization's intranet.

Concurrent Validation

Research that consists of administering a test to people who currently hold a job, then comparing their scores to existing measures of job performance.

Predictive Validation

Research that uses the test scores of all applicants and looks for a relationship between the scores and future performance of the applicants who were hired.

Panel Interview

Selection interview in which several members of the organization meet to interview each candidate

Cross-Training

Team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

Coordination training

Team training that teaches the team how to share information and make decisions to obtain the best team performance.

Cognitive Ability Tests

Tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability.

Aptitude Tests

Tests that assess how well a person can learn or acquire skills and abilities.

Achievement Tests

Tests that measure a person's existing knowledge and skills.

forecasting

The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses

Employee Development

The combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.

Job Experiences

The combination of relationships, problems, demands, tasks, and other features of an employee's jobs

Readability

The difficulty level of written materials

Reliability

The extent to which a measurement is free from random error

Validity

The extent to which performance on a measure (such as a test score) is related to what the measure is designed to assess (such as job performance).

Utility

The extent to which something provides economic value greater than its cost

Downsizing

The planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness.

Nepotism

The practice of hiring relatives.

Personnel Selection

The process through which organizations make decisions about who will or will not be allowed to join the organization.

Cost per Hire

The total amount of money spent to fi ll a job vacancy. The number is computed by finding the cost of using a particular recruitment source and dividing that cost by the number of people hired to fi ll that type of vacancy

Self-Assessment

The use of information by employees to determine their career interests, values, aptitudes, behavioral tendencies, and development needs

Diversity Training

Training designed to change employee attitudes about diversity and/or develop skills needed to work with a diverse workforce

Orientation

Training designed to prepare employees to perform their jobs effectively, learn about their organization, and establish work relationships.

Team Leader Training

Training in the skills necessary for effectively leading the organization's teams.

Action Learning

Training in which teams get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying it out

On-the-Job Training (OJT)

Training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace

Experiential Programs

Training programs in which participants learn concepts and apply them by simulating behaviors involved and analyzing the activity, connecting it with real-life situations.

Assessment Center

Typically an off-site location at which multiple raters or evaluators (assessors) evaluate employees' performance on a number of exercises, usually as they work in a group

Generalizable

Valid in other contexts beyond the context in which the selection method was developed.

Tell how managers and peers develop employees through coaching.

• A coach is a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback. • Coaches should be prepared to take on one or more of three roles: working one-on-one with an employee, helping employees learn for themselves, and providing resources, such as mentors, courses, or job experiences.

Summarize principles of successful mentoring programs.

• A mentor is an experienced, productive senior employee who helps develop a less-experienced employee. • Although most mentoring relationships develop informally, organizations can link mentoring to development goals by establishing a formal mentoring program. A formal program provides a basis for ensuring that all eligible employees are included. • Mentoring programs tend to be most successful when they are voluntary and participants understand the details of the program. • The organization should reward managers for employee development, carefully select mentors based on interpersonal and technical skills, train them for the role, and evaluate whether the program has met its objectives.

Compare widely used training methods

• Classroom instruction is most widely used and is one of the least expensive and least time-consuming ways to present information on a specific topic to many trainees. It also allows for group interaction and may include hands-on practice. • Audiovisual and computer-based training (often called e-learning) need not require that trainees attend a class, so organizations can reduce time and money spent on training. Computer-based training may be interactive and may provide for group interaction. • On-the-job training methods such as apprenticeships and internships give trainees firsthand experiences. • A simulation represents a real-life situation, enabling trainees to see the effects of their decisions without dangerous or expensive consequences. • Business games and case studies are other methods for practicing decision-making skills. Participants need to come together in one location or collaborate online. • Behavior modeling gives trainees a chance to observe desired behaviors, so this technique can be effective for teaching interpersonal skills. • Experiential and adventure learning programs provide an opportunity for group members to interact in challenging circumstances but may exclude members with disabilities. • Team training focuses a team on achievement of a common goal. • Action learning offers relevance, because the training focuses on an actual work-related problem.

Discuss how development is related to training and careers.

• Employee development is the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers. • Training is more focused on improving performance in the current job, but training programs may support employee development. • In modern organizations, the concept of a career is fluid—a protean career that changes along with changes in a person's interests, abilities, and values and changes in the work environment. To plan and prepare for a protean career requires active career management, which includes planning for employee development.

Describe training methods for employee orientation and diversity management.

• Employee orientation is training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships. • Organizations provide for orientation because, no matter how realistic the information provided during employment interviews and site visits, people feel shock and surprise when they start a new job, and they need to learn the details of how to perform the job. • A typical orientation program includes information about the overall company and the department in which the new employee will be working, covering social as well as technical aspects of the job. • Orientation programs may combine several training methods, from printed materials to on-the-job training to e-learning. • Diversity training is designed to change employee attitudes about diversity and/or develop skills needed to work with a diverse workforce. • Evidence regarding these programs suggests that diversity training is most effective if it is part of management's long-term commitment to managing diversity as an opportunity for people to learn from one another and acquire teamwork skills.

Evaluate the success of a training program.

• Evaluation of training should look for transfer of training by measuring whether employees are performing the tasks taught in the training program. • Assessment of training also should evaluate training outcomes, such as change in attitude, ability to perform a new skill, and recall of facts or behaviors taught in the training program. • Training should result in improvement in the group's or organization's outcomes, such as customer satisfaction or sales. An economic measure of training success is return on investment.

Summarize how to implement a successful training program.

• Implementation should apply principles of learning and seek transfer of training. • In general, effective training communicates learning objectives, presents information in distinctive and memorable ways, and helps trainees link the subject matter to their jobs. • Employees are most likely to learn when training is linked to job experiences and tasks. Employees learn best when they demonstrate or practice what they have learned and when they receive feedback that helps them improve. • Trainees remember information better when it is broken into small chunks, presented with visual images, and practiced many times. Written materials should be easily readable by trainees. • Transfer of training is most likely when there is social support (from managers and peers), technical support, and self-management.

Describe recruitment policies organizations use to make job vacancies more attractive.

• Internal recruiting (promotions from within) generally makes job vacancies more attractive because candidates see opportunities for growth and advancement. • Lead-the-market pay strategies make jobs economically desirable. • Due-process policies signal that employers are concerned about employee rights . • Image advertising can give candidates the impression that the organization is a good place to work.

List and compare sources of job applicants.

• Internal sources, promoted through job postings, generate applicants who are familiar to the organization and motivate other employees by demonstrating opportunities for advancement. However, internal sources are usually insufficient for all of an organization's labor needs. • Direct applicants and referrals tend to be inexpensive and to generate applicants who have self selected; this source risks charges of unfairness, especially in cases of nepotism. • Electronic recruiting gives organizations access to a global labor market, tends to be inexpensive, and allows convenient searching of databases. • Newspaper and magazine advertising reaches a wide audience and may generate many applications, although many are likely to be unsuitable. • Public employment agencies are inexpensive and typically have screened applicants. • Private employment agencies charge fees but may provide many services. • Another inexpensive channel is schools and colleges, which may give the employer access to topnotch entrants to the labor market.

Discuss how to conduct effective interviews.

• Interviews should be narrow, structured, and standardized. • Interviewers should identify job requirements and create a list of questions related to the requirements. • Interviewers should be trained to recognize their own personal biases and conduct objective interviews. • Panel interviews can reduce problems related to interviewer bias. • Interviewers should put candidates at ease in a comfortable place that is free of distractions. Questions should ask for descriptions of relevant experiences and job-related behaviors. • The interviewers also should be prepared to provide information about the job and the organization.

Explain how job experiences can be used for developing skills.

• Job experiences contribute to development through a combination of relationships, problems, demands, tasks, and other features of an employee's jobs. • The assumption is that development is most likely to occur when the employee's skills and experiences 262 PART 2 Acquiring, Training, and Developing Human Resources do not entirely match the skills required for the employee's current job, so employees must stretch to meet the demands of the new assignment. • The impact varies according to whether the employee views the experience as a positive or negative source of stress. • Job experiences that support employee development may include job enlargement, job rotations, transfers, promotions, downward moves, and temporary assignments with other organizations.

Compare the common methods used for selecting human resources.

• Nearly all organizations gather information through employment applications and résumés. These methods are inexpensive, and an application form standardizes basic information received from all applicants. The information is not necessarily reliable, because each applicant provides the information. These methods are most valid when evaluated in terms of the criteria in a job description. • References and background checks help verify the accuracy of applicant-provided information. • Employment tests and work samples are more objective. To be legal, any test must measure abilities that actually are associated with successful job performance. Employment tests range from general to specific. General-purpose tests are relatively inexpensive and simple to administer. Tests should be selected to be related to successful job performance and avoid charges of discrimination. • Interviews are widely used to obtain information about a candidate's interpersonal and communication skills and to gather more detailed information about a candidate's background. Structured interviews are more valid than unstructured ones. Situational interviews provide greater validity than general questions. Interviews are costly and may introduce bias into the selection process. Organizations can minimize the drawbacks through preparation and training.

Explain how to assess the need for training

• Needs assessment consists of an organization analysis, person analysis, and task analysis. • The organization analysis determines the appropriateness of training by evaluating the characteristics of the organization, including its strategy, resources, and management support. • The person analysis determines individuals' needs and readiness for training. • The task analysis identifies the tasks, knowledge, skills, and behaviors that training should emphasize. It is based on examination of the conditions in which tasks are performed, including equipment and environment of the job, time constraints, safety considerations, and performance standards

Define ways to measure the success of a selection method.

• One criterion is reliability, meaning free from random error, so that measurements are consistent. • A selection method should also be valid, meaning that performance on the measure (such as a test score) is related to what the measure is designed to assess (such as job performance). • Criterion-related validity shows a correlation between test scores and job performance scores. • Content validity shows consistency between the test items or problems and the kinds of situations or problems that occur on the job. • Construct validity establishes that the test actually measures a specified construct, such as intelligence or leadership ability, which is presumed to be associated with success on the job. • A selection method also should be generalizable, or applicable to more than one specific situation. • Each selection method should have utility, meaning it provides economic value greater than its cost. • Selection methods should meet the legal requirements for employment decisions.

Describe how organizations use assessment of personality type, work behaviors, and job performance to plan employee development.

• Organizations collect information and provide feedback to employees about their behavior, communication style, and skills. • The information may come from the employees, their peers, managers, and customers. • Many organizations use performance appraisals as a source of assessment information. Appraisals may take the form of 360-degree feedback. • Some organizations use psychological tests designed for this purpose, including the Myers-Briggs Type Indicator and the DiSC assessment. • Assessment centers combine a variety of methods to provide assessment information. • Managers must share the assessments, along with suggestions for improvement.

Identify the methods organizations use for employee development.

• Organizations may use formal educational programs at the workplace or off-site, such as workshops, university courses and degree programs, company-sponsored training, or programs offered by independent institutions. • An assessment process can help employees identify strengths and areas requiring further development. Assessment can help the organization identify employees with managerial potential or identify areas in which teams need to develop. • Job experiences help employees develop by stretching their skills as they meet new challenges. • Interpersonal relationships with a more experienced member of the organization—often in the role of mentor or coach—can help employees develop their understanding of the organization and its customers.

Discuss how to link training programs to organizational needs.

• Organizations need to establish training programs that are effective—in other words, programs that (1) teach what they are designed to teach and (2) teach skills and behaviors that will help the organization achieve its goals. • Organizations create such programs through instructional design. • The steps in this process are to conduct a needs assessment, ensure readiness for training (including employee characteristics and organizational support), plan a training program, implement the program, and evaluate the results

Describe major types of employment tests

• Physical ability tests measure strength, endurance, psychomotor abilities, and other physical abilities. They can be accurate but can discriminate and are not always job related. • Cognitive ability tests, or intelligence tests, tend to be valid, especially for complex jobs and those requiring adaptability. They are a relatively lowcost way to predict job performance but have been challenged as discriminatory. • Job performance tests tend to be valid but are not always generalizable. Using a wide variety of job performance tests can be expensive. • Personality tests measure personality traits such as extroversion and adjustment. Research supports their validity for appropriate job situations, especially for individuals who score high on conscientiousness, extroversion, and agreeableness. These tests are relatively simple to administer and generally meet legal requirements. • Organizations may use paper-and-pencil honesty tests, which can predict certain behaviors, including employee theft. Organizations may not use polygraphs to screen job candidates. • Organizations may also administer drug tests (if all candidates are tested and drug use can be an on-the-job safety hazard). • Passing a medical examination may be a condition of employment, but to avoid discrimination against persons with disabilities, organizations usually administer a medical exam only after making a job offer.

Describe how to plan an effective training program

• Planning begins with establishing training objectives, which should define an expected performance or outcome, the desired level of performance, and the conditions under which the performance should occur. • Based on the objectives, the planner decides who will provide the training, what topics the training will cover, what training methods to use, and how to evaluate the training. • Even when organizations purchase outside training, someone in the organization, usually a member of the HR department, often is responsible for training administration. • The training methods selected should be related to the objectives and content of the training program. • Training methods may include presentation methods, hands-on methods, or group-building methods.

Explain how to assess employees' readiness for training.

• Readiness for training is a combination of employee characteristics and positive work environment that permit training. • The necessary employee characteristics include ability to learn the subject matter, favorable attitudes toward the training, and motivation to learn. • A positive work environment avoids situational constraints such as lack of money and time. In a positive environment, both peers and management support training.

Identify the elements of the selection process

• Selection typically begins with a review of candidates' employment applications and resumes. • The organization administers tests to candidates who meet basic requirements. • Qualified candidates undergo one or more interviews. • Organizations check references and conduct background checks to verify the accuracy of information provided by candidates. • A candidate is selected to fill each vacant position. • Candidates who accept offers are placed in the positions for which they were selected.

Discuss how to plan for human resources needed to carry out the organization's strategy.

• The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply of and demand for various human resources. • Based on whether a surplus or a shortage is expected, the planner sets goals and creates a strategy for achieving those goals. • The organization then implements its HR strategy and evaluates the results.

Discuss how organizations are meeting the challenges of the "glass ceiling," succession planning, and dysfunctional managers.

• The glass ceiling is a barrier that has been observed preventing women and other minorities from achieving top jobs in an organization. Development programs can ensure that these employees receive access to development resources, such as coaches, mentors, and developmental job assignments. • Succession planning ensures that the organization prepares qualified employees to fill management jobs as managers retire. It focuses on applying employee development to high-potential employees. Effective succession planning includes methods for selecting these employees, providing them with developmental experiences, and getting the CEO actively involved with employees who display qualities associated with success as they participate in the developmental activities. • For dysfunctional managers who have the potential to contribute to the organization, the organization may offer development targeted at correcting the areas of dysfunction. Typically, the process includes collecting information about the manager's personality, skills, and interests; providing feedback, training, and counseling; and ensuring that the manager can apply new, functional behaviors on the job.

Explain how employers carry out the process of making a selection decision

• The organization should focus on the objective of finding the person who will be the best fit with the job and organization. This includes an assessment of ability and motivation. • Decision makers may use a multiple-hurdle model in which each stage of the selection process eliminates some of the candidates from consideration at the following stages. At the final stage, only a few candidates remain, and the selection decision determines which candidate is the best fit. • An alternative is a compensatory model, in which all candidates are evaluated with all methods. A candidate who scores poorly with one method may be selected if he or she scores very high on another measure.

Determine the labor demand for workers in various job categories.

• The planner can look at leading indicators, assuming trends will continue in the future. • Multiple regression can convert several leading indicators into a single prediction of labor needs . • Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.

Identify the steps in the process of career management.

• The process begins with data gathering. Employees use information to determine their career interests, values, aptitudes, and behavioral tendencies, looking for opportunities and areas needing improvement. Data-gathering tools often include psychological tests or exercises that ask about career status and plans. • The organization then provides feedback by communicating information about the employee's skills and knowledge and how these fit into the organization's plan. • The employee sets goals and discusses them with his or her manager, who ensures that the goals are specific, challenging, and attainable. • Finally, the employee works with his or her manager to create an action plan and follow-up for development activities that will help the employee achieve the goals.

Summarize the government's requirements for employee selection.

• The selection process must be conducted in a way that avoids discrimination and provides access to persons with disabilities. • Selection methods must be valid for job performance, and scores may not be adjusted to discriminate against or give preference to any group. • Questions may not gather information about a person's membership in a protected class, such as race, sex, or religion, nor may the employer investigate a person's disability status. • Employers must respect candidates' privacy rights and ensure that they keep personal information confidential. • Employers must obtain consent before conducting background checks and notify candidates about adverse decisions made as a result of background checks.

Describe the recruiter's role in the recruitment process, including limits and opportunities

• Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated. • Applicants tend to perceive job experts as more credible than recruiters who are HR specialists. • Applicants tend to react more favorably to recruiters who are warm and informative. • Recruiters should not mislead candidates. Realistic job previews have only a weak association with reduced turnover, but given their low cost and ease of implementation, employers should consider using them. • Recruiters can improve their impact by providing timely feedback, avoiding behavior that contributes to a negative impression of the organization, and teaming up with job experts.

Summarize the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.

• To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees' motivation and future recruiting. Also, the organization may lose some of its best employees. • Transferring employees and requiring them to share work are also fast methods, and the consequences in human suffering are less severe. • A hiring freeze or natural attrition is slow to take effect but avoids the pain of layoffs. • Early-retirement packages may unfortunately induce the best employees to leave and may be slow to implement; however, they, too, are less painful than layoffs. • Retraining can improve the organization's overall pool of human resources and maintain high morale, but it is relatively slow and costly. • To avoid a labor shortage, requiring overtime is the easiest and fastest strategy, which can easily be changed if conditions change. However, overtime may exhaust workers and can hurt morale. • Using temporary employees and outsourcing do not build an in-house pool of talent, but they quickly and easily modify staffing levels. • Transferring and retraining employees require investment of time and money, but can enhance the quality of the organization's human resources; however, this may backfire if a labor surplus develops. • Hiring new employees is slow and expensive, but strengthens the organization if labor needs are expected to expand for the long term. Hiring is difficult to reverse if conditions change. • Using technology as a substitute for labor can be slow to implement and costly, but it may improve the organization's long-term performance. New technology also is difficult to reverse.