Final Exam

Final Exam

Case 1

Question a)

Credit checks are being considered in the United States for all hiring's since there is a belief that people with bad credit records have a higher chance of stealing from the organization. With this concept in mind, there is a general belief that credit checks would lead to the hiring of employees that are more reliable. The reason for this is that employees that have a bad credit record would naturally be facing a tough financial situation and home due to which they will be compelled to steal. This factor makes credit checks a good way to maintain a reliable workforce.

Credit checks are also considered to be valid because employers claim that they have witnessed that employees with a bad credit history may perform well at work but a time will come when they would eventually begin to steal. This fact has been instrumental in making employers come to the conclusion that it is a must to conduct credit checks. However, according to employees, this is not a good way to judge a person because one of the main reasons that may have a bad credit record is because they are jobless and when they get a job, they would be able to pay off their debt.

The use of credit checks in order to generalize the fact that there is a direct proportionality between the credit history of a person and his reliability at the organization. Due to this, there is a general consensus among employers that if they hire people with a bad credit history, the chances that they would ultimately steal from the organization would be high.

The utility of such a decision is quite high because of the fact that if employers make hiring decisions on the basis of credit history, they would be losing some potentially good employees because there is no relation between a good employee and credit history. For instance, a potentially good employee may have a bad credit history and on this basis aloe he would not be offered the job because employers have set credit history as a benchmark for hiring decisions. This signifies the high utility of such a decision (Weber, 2008).

Employers can set and criteria for the selection of employees as long as they are not discriminatory. Selecting employees based on their credit history signifies that they have set criteria according to their needs. Therefore, it is legal to use such criteria.

Overall, the use of credit history as a criterion may seem to be invalid to many because of the fact that if a person has a good job, the chances that the he would continue to have a high debt would be low.

Question b)

A credit check would be useful in cases where the employee would be directly in contact with the property of the organization and would be in a position to steal or to manipulate accounts. Jobs such as that in the finance department are most prone to manipulation by people with a bad credit ...