1. September 22-25, 2008 Athens, Greece Cornerstone Assessments “Basic Training” Competence + Compatibility = Contribution to Results Management Development Series

2. Welcome!

3. Formulas Introduction Concepts Final Exam Casework Online System

4. The Cornerstone International On-Line Assessments are based upon the Human Capital Management System

5. Human Capital Management System A Proprietary, Copyrighted Product

6. Basic Concepts The Human Capital On-Line Profile Evaluation improves performance through five basic concepts 1.APPRECIATING HUMAN ASSETS 2. UNDERSTANDING THE WORK ENVIRONMENT 3. CLARIFYING AND SIMPLIFYING JOBS 4. EXPLAINING SUCCESS DETERMINANTS 5. APPLYING THE HCI METHOD

7. Concept One WHAT ARE HUMAN ASSETS? People have value. They are assets to an organization, and they should be managed accordingly. KEY POINT: If people are managed as assets, they will develop, grow, and increase in value. On the other hand, if they are managed as an expense, they more likely become a target for control and lay-off.

8. The work environment is comprised of: STRUCTURE STRATEGY CULTURE TEAMS JOBS Their definition, design, and the resulting climate affect people's performance. KEY POINT: Never judge people as though they work in a vacuum. People work in a real world of challenge, conflicts, change, and constraints. If people work in a comfortable setting where goals and other expectations are clear, they tend to be motivated and contribute to increased productivity. If the environment is confusing or conflicting, pressure increases, tension builds, and work suffers. Most people become uncomfortable and unhappy. Concept Two WHAT IS WORK ENVIRONMENT?

9. WHAT IS JOB CLARIFICATION? Job expectations should be better defined and simplified.The Purpose and Priorities of all jobs should be clear so that know what is expected of them. Job expectations should be better defined and simplified.The Purpose and Priorities of all jobs should be clear so that people know what is expected of them. If people understand their responsibilities, they will be more productive. When employees are placed in a job, they should know its expectations and the organization's priorities. If they see the whole picture, they will better understand its parts. Concept Three KEY POINT:

10. WHAT ARE "SUCCESS FACTORS"? The human factors that underly and cause success, and therefore help predict success. KEY POINT: Success factors are the ideal components of human capital (education, training, knowledge, skills, experience and behavior) which may be used to establish standards for jobs. These standards suggest what is required in human terms to become successful in the job, and therefore what also will predict success in the job. Concept Four

11. THE HCI METHOD FORMULA Competency + Compatibility = Contribution to Results C1 + C2 = C4 Concept Four

12. WHAT IS THE HCI METHOD? Identifying the Success Factors for a specific position, then measuring each Candidate against them. C1 + C2 = C4 EXPERIENCE determines COMPETENCY ( C1 ) FIT determines COMPATIBILITY (C2 ) When both Competency and Compatability are considered in the selection process, better hires are made. As a result, people perform better. Human synergy occurs. This is indicated by C4. Competency alone does not mean a person will succeed in a job. Compatibility with the work environment is the other factor that contributes to improved performance and success. Concept Five KEY POINT:

13. BRAINPOW ER (1) CONTRIBUTION TO RESULTS VALUES STYLE EDUCATION TRAINING EDUCATION TRAINING KNOWLEDGE SKILLS KNOWLEDGE SKILLS EXPERIENCE (1) BRAINPOWER = THINKING PROCESS + EMOTIONAL THINKING + RATIONAL THINKING HCIMETHODHCIMETHOD COMPETENCY COMPATIBILITY

14. The total of knowledge, skills, and experience  Proven past performance”  Years and types of jobs  Results accomplished Education / Training Ø Quality of Institution Ø Quality of Faculty Ø Specific Curricula COMPETENCY Knowledge/Skills: Technical Managerial Human Relations Leadership EDUCATIONTRAINING KNOWLEDGE SKILLS EXPERIENCE  Degree of difficulty  Amount of company support  Quality of products and services

15. VALUESVALUESSTYLESTYLE Problems Problems People People Pressures Pressures Policies Policies and Procedures and Procedures Problems Problems People People Pressures Pressures Policies Policies and Procedures and Procedures HOW? Act or react to: Motivators Interests Priorities Goals WHY? Act or React to Act or React to : THINKING PROCESS EMOTIONAL THINKING RATIONAL THINKING BRAINPOWERBRAINPOWER WHICH? COMPATIBILITY

16. HOW DO WE SET BETTER SELECTION STANDARDS? Through improved understanding of the organization’s CULTURE STRUCTURE STRATEGY When selection standards are vague, hiring decisions become confused or complicated. Why? Because decision-makers may have questions about what type person they are trying to hire. When selection standards are clear, hiring decisions improve. Therefore, understanding how organizational culture, structure, and strategy impact selection standards becomes important. KEY POINT:

17. Culture, Structure, Strategy... and How They Impact Selection Standards WHAT IS CULTURE? Beliefs, traditions, and values... "the way we do things around here." WHAT IS STRUCTURE? Work requirements and relationships..."who does what, reports to and works with whom" WHAT IS STRATEGY? The organization roadmap... "the best way for the whole team to reach the goals" When decision-makers understand their work environment, meaning its job standards, accepted practices, and desired human relationships, they make better hiring decisions. As The HCI Method suggests, if decision-makers select people who are both competent to perform the work and compatible with the work environment, the people selected will perform better. KEY POINT:

18. Position Definition WHAT IS THE POSITION DEFINITION? A standard form for the decision- makers to establish each job's A standard form for the decision- makers to establish each job's PURPOSE PRIORITIES TIME USE The Position Definition defines a job's desired results (Purpose), its responsibilities in order of importance (Priorities), and the best distribution of time to accomplish those responsibilities (Time Use). When the purpose is unclear, responsibilities are not prioritized, and time use is indefinite, performance suffers. KEY POINT:

19. Purpose, Priorities, Time Use WHAT IS PURPOSE? The reason the job exists in the first place, and therefore, what contribution to results the job is expected to make. WHAT ARE PRIORITIES? Responsibilities in order of importance...what comes first to perform productively. WHAT IS TIME USE? Approximate allocation of time to carry out each responsibility properly. KEY POINT: Better Selection Standards require agreement on Job Purpose, Priorities and Time Use. The Position Analysis indicates job expectations in these ways. This guides improved performance. When duties are not properly defined, managers tend to expect too much from some people and under- utilize other people. Teamwork suffers, and people find it more difficult to meet expectations.