Discussion Answers Must Be A Minimum Of 125 Words
The Discussion Answers Must Be A Minimum Of 125 Words Of Substance W
The discussion answer(s) must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else.
Paper For Above instruction
Discussion A: Sequential-Move Game Strategy
In the given sequential-move game scenario, the entrant faces choices regarding industry entry and potential withdrawal. If the entrant chooses to stay after being fought, they incur a loss of 5, while the incumbent gains little. Alternatively, if the entrant withdraws when contested, they suffer a loss of 1, and the incumbent gains 8. The equilibrium strategy involves analyzing the payoffs to determine optimal decisions. The dominant strategy for the entrant is to withdraw if they anticipate being fought, as this minimizes losses (loss of 1 compared to a loss of 5). From the incumbent’s perspective, rewarding withdrawal by winning 8 incentivizes them to fight. The equilibrium occurs when the entrant chooses to withdraw, and the incumbent fights, resulting in a payoff where the entrant loses 1 and the incumbent gains 8. If the entrant had the ability to withdraw at any stage, they are better off with this option, as it limits potential losses and provides strategic flexibility. Without the withdrawal option, the entrant might be forced into unfavorable outcomes, risking higher losses. Therefore, having the ability to withdraw strategically allows the entrant to mitigate risks in a competitive environment, making them better off overall.
Discussion B: Type I and II Decision Error Costs
In HR decision-making, understanding Type I and Type II errors is crucial. A Type I error occurs when a candidate is wrongly rejected despite possessing the necessary qualifications, whereas a Type II error involves wrongly accepting an unqualified applicant. Given the context of filling a position from a small talent pool, the costs associated with these errors influence hiring decisions significantly. Typically, Type I errors carry higher hidden costs because rejecting competent candidates can lead to prolonged vacancies, loss of productivity, and missed opportunities; these errors may be more likely to be discovered by the CEO, especially if the rejected candidate would have delivered immediate value. Conversely, accepting unqualified applicants (Type II errors) might be noticeable later through poor performance and the need to replace the hire. Consequently, HR managers tend to be cautious about Type I errors to avoid missing high-potential candidates, although this might increase the risk of Type II errors. Ultimately, balancing these errors involves analyzing the specific costs and strategic priorities involved in each hiring decision, emphasizing the importance of accurate candidate assessment tools.
References
- Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291.
- Fernandez, C. (2019). Game theory and strategic decision-making. Journal of Economics & Management Strategy, 28(3), 475-489.
- Raiffa, H., & Schlaifer, R. (1961). Applied Statistical Decision Theory. Harvard University Press.
- Venter, P., & Cloete, M. (2010). Decision errors in recruitment and selection: An integrated review. SA Journal of Human Resource Management, 8(1), 61-70.
- Schmidt, F. L., & Hunter, J. E. (1998). The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124(2), 262–274.