Question

1. Under what circumstances should a compensatory model be used? Give examples of scenarios and jobs under which compensatory models should be used.

2, Under what circumstances should a multiple hurdles model be used? Give examples of scenarios and jobs under which compensatory models should be used

Answer 1

1) Compensatory model are used when one can compensate the low scores in one predictor with high scores in another predictor. This model is widely used in consumer decision making, while selecting candidates, brand marketing etc. In selecting candidates, this model recognises the strengths and weakness of candidates and according to which they place them in the role even though they may have weakness in certain job areas.

E.g. While buying an aprtement, you get good society, good carpet area, market nearby, low rent but may not get a sea view. One can compensate for the benefits provided here over the view.

In Jobs, while hiring a candidate, you get a candidate from a top B-school, having good experience in brand management with excellent results, good sales experience but no people management experience. Comapnies makes the trade off for the positives as people management can be laernt on the job.

2)Multiple hurdles models are used when each parameter measured by predictor is critical and is essential for the sucess of job and can not be compromised.

E.g. In Jobs, when there are few openings in an organisation but the number of applications received is large. Companies makes use of this model to filter out the candidates by evaluating them at different stages like assessment, group discussions, interviews etc.Using this model, companies select the candidates who have passed all the levels.

Management Jobs and leadership jobs are few but require a lot of skills and experience, this type of model can be used to assess candidates and find right fit.