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Dynamo Industries is a medium-sized manufacturer of small electrical motors headquartered in St. Paul, Minnesota. The firm employs 9,800 people. Dynamo Industries has plants in St. Paul; Columbus, Ohio; Atlanta; San Diego; Pittsburgh; Providence, Rhode Island, and Little Rock, Arkansas. All these plants are unionized, although the power of the respective unions varies greatly. Recently, the company has been trying to hire a new plant manager (see job description in Exhibit 6.2.1) for the Pittsburgh plant (plant managers report directly to the vice president of production). Although Dynamo Industries has experienced slightly above average growth and profit compared to its competitors, the Pittsburgh plant has been a trouble spot. Over the past three years, production costs there have been extremely high and there has been labor strife (e.g., numerous work slow-downs, an excessive number of grievances files.) The most recent Pittsburgh plant manager was terminated although by mutual agreement the company stated he left for a better job with another company. Because of the importance of the plant manager position, Dynamo Industries has used several expensive selection devices. These devices are detailed below. After a thorough recruitment effort (both within and outside the company) and some initial screening, the list of job candidates has been reduced to eight names. . Dynamo Industries does not have an established philosophy for filling job openings. In the past, it has favored promotion from within the company. However, the vice president of production was hired externally. Dynamo has no policy on lateral transfers. The key issue seems to be whether the company benefits from the transfer. BACKGROUND INFORMATION ON THE CANDIDATES 1. Geroge Fein-age 44. Education: B.A., University of Wisconsin; M.A. (Industrial Relations), Cornell University. He is a plant manager of a relatively small (580 nonunion employees) plant (located in Cleveland) of one of Dynamo's competitors. George has held that job for the past six years. He has been with the company for 14 years. No reference information was gathered because George was concerned about his present employer's reaction. 2. Tony Caciopo-age 59. Education: high school graduate. He is an assistant plant manager (Providence). Caciopo has been with Dynamo for 24 years. He has been assistant plant manager in Providence for the past 10 years. He had a severe heart attach four years ago but appears to have recovered. Ten years ago, he was offered a job as plant manager by Dynamo but turned it down because of health problems his wife was having. 3. Kathy Joyce-age 36. Education: B.A., Indiana University. She is currently plant manager of the Little Rock plant. She desires a lateral transfer because it would enhance job opportunities for her husband. Joyce has been with Dynamo for five years and has been plant manager at Little Rock for two years. 4. Barry Martin-age 49. Education: associate degree (2 years) from Morehead State University. Until two month ago, Martin was plant manager at a large, unionized textile plant. Two months ago, the company Martin worked for discontinued this product line and he was let go. Martin had been with his former company for 20 years and was plant manager for 5 years. His letters of reference were excellent. 5. Ron Jackson-age 33. Education: B.A., Howard University: M.B.A., Northwestern. He is currently an assistant plant manager at the Pittsburgh plant. He has been with the company for four years: he has been assistant plant manager for two years. He has served as acting plant manager at Pittsburgh for the past two months. 6. Jay Davis-age 46. Education: B.A., Harvard; M.B.A., Harvard. He is currently assistant plant manager (Atlanta). Davis has been with Dynamo for 10 years; the past 7 years he has been assistant plant manager (6 years in St. Paul, the past year in Atlanta). 7. Frank Hall-age 58. Education: B.S. (chemistry), Duke University. He is currently vice president for production for one of Dynamo's major competitors. He says he seeks a demotion so that he is required to travel less. He has been vice president of production for six years. Before that, he was a plant manager for 12 years. The plant was organized. No reference information is available. However, he has received outstanding reviews in trade publications for his performance as vice president. 8. Tom Doyle-age 36. Education: B.A., Williams College: M.B.A., University of Chicago. For the past two years, Tom has worked as a special assistant to the vice president of production. Before this he was an assistant PM for two years and a PM (Little Rock) for three years. Tom was the youngest PM ever appointed at Dynamo. He was very ineffective as a PM and after three years was removed from this position. EXHIBIT 6.2.3 - PERSONALITY PROFILE Each of the eight candidates was examined by a psychiatrist. She utilized personality tests (e.g., 16PF, the MyersBriggs Type Indicator, and the Thematic Apperception Test) in drawing the following conclusions. INTEI IICFNCE TFCTC ANO HANRIAIRITINS ANIIVCFC Note: The intelligence test (Wechsler Adult Intelligence Scale) given by Dynamo Industries is commonly used for selecting candidates for management. Individuals scoring below 115 tend not to do well in managerial jobs. Standard error equals 3.5. Note: Ihe handwriting analyss rated the plant manager candidates in terms of their likelinood of success as the Pittsburgh plant manager (3= very poor prospect +3= very strong prospect ) DROAMOTARII ITV RATINAC DEDEORMAANIF RATINRC ANI IMIORK CAMADI F CRODEC Note: A promotability rating was made as part of the annual performance review (7=ready for immediate promotion....1=should not be promoted). The performance rating ranges from 1= poor performance....7=exceptional performance. As part of the selection process, all applicants went through a series of work sample tests (i.e., in-basket, leaderless group discussion, and production planning exercise). Scoring was done by trained raters from the personnel department (20=highest possible score). INTERVIEWERS' RATINGS Note: Each of the interviewers went through a one-day interview training program. The vice president of production's interviews averaged three hours in length. The other interviews averaged 60 minutes in length. Interview ratings were made on a seven-point scale (1=poor candidate .. . . 7-excellent candidate). All interviews were semi-structured The plant manager (PM) is ultimately responsible for the operating efficiency of the entire plant. In fulfilling his/her responsibilities, the PM regularly consults with subordinate supervisory personnel (the PM frequently delegates duties). A plant manager must be somewhat knowledgeable of production methods and the capabilities of equipment. Some of the activities the plant manager is directly or indirectly involved in include: I. Producing materials and maintaining quality. II. Establishing and maintaining the plant budgets and labor expenses. III. .Revising production schedules because of equipment failure or operation problems. IV. Consulting with engineering personnel concerning the modification of machinery to improve production quantity. V. Conducting hearings to resolve employee grievances (along with HR Department.) VI. Participating in union-management contract negotiations. VII. Ensuring health and safety of employees. VIII. Establishing community relations