Managing Human Capital 1

Assignment# 2

Q1: What are advantages and disadvantages to Jenifer’s company of

routinely administering honesty tests of all it employees?
There are positive advantages and some disadvantages of regularly conducting honesty test of
workers.
Honesty test helps to spot culprits in the organization. These types of people are indulged in
dishonorable and dishonest actions. Through this identification the personal managers can easily
get rid of these type of employees.

Polygraph testing raises a large number of legal and moral issues, issues Carter Cleaning would
best avoid. Use some of the available “paper and pencil” honesty tests may be a possibility. In
general, these have been shown to be reasonable, reliable and valid. They are still controversial.
The costs associated with these tests may also make them prohibitive to a small operation like
Jennifer’s. Therefore regularly conducting honesty test is also against employee empowerment.
Because at one side top management is giving them authority to make decisions and work
according to their own choice but at the same moment is conducting honesty test frequently. But
the employees should be aware that they are accountable of their acts

Q 2: Specifically what other screening techniques could the company use to

screen out theft -prone and turnover-prone employees and how exactly could
these be used?
Following techniques the company could use

Intense background checks are a recommend as technique to eliminate potential thieves.

Some firms chose to contract this out to a private security agency (Cost may be an issue
to Jennifer.
As part of the job preview, Carter must communicate that jobs in her company are worth
keeping. Dishonesty and theft will not be tolerated in any circumstances
Further company policies regarding theft should be clearly communicated to new and
existing employees.
 Managing Human Capital 2
Assignment# 2

Q3: How should her company terminate employees caught stealing, and what kind of
procedure should be set up for handling reference calls about these employees when they
go to other companies looking for jobs?

Terminating employees for theft should include the involvement of proper law enforcement
agencies and should only be done when there is absolute proof of the theft and who committed
It.

Such an action will also send a message to the other employees that the company will not
tolerate theft of company resources. While many employers are reluctant to prosecute employees
for theft, developing evidence with police and through the courts can be beneficial in providing
future employers of the individual with truthful and factual information.