(6) As an experiment, a charity decides to use SMART to determine a shortlist from the seven applicants who have applied for the post of Regional Officer for the Western Region. The main criteria which will be used to compare candidates are: the salary they would expect (SALARY) (they have stated this on the application form), their experience of charity work (CHARITY EXP), their managerial experience (MANAGEMENT EXP), their educational qualifications (EDUCATION), their apparent commitment to the charity’s work (COMMITMENT) (as gleaned from the application form) and the quality of the ideas they put forward on the form (IDEAS).

(a) When a value tree was used to identify the above attributes there was some doubt about whether the attributes IDEAS and COMMITMENT met Keeney and Raiffa’s criterion of decomposability. Explain what this means and why the concerns might be justified.

(b) The personnel manager ranked all the criteria, except salary, in order of importance and then assigned weights as follows:

Discuss whether the method the personnel manager used to assess these weights is appropriate.

(c) Candidate A’s scores for the non-monetary attributes are given below:

Using the weights given in part (b), show how the personnel manager obtained a score of 50 (subject to rounding) for this candidate.

(d) The aggregate scores for all the candidates are given below, together with their expected salaries. Assuming that the personnel manager’s model is appropriate, determine the candidates who appear on the efficient frontier and explain the significance of this.

(e) The candidate with the least management experience has only been working in management for 2 years, while the most experienced candidate has 10 years’ experience. If the personnel manager reckons that the charity would be prepared to pay $8000 for the 8 years’ extra management experience, all else remaining equal, determine which candidate she should recommend for the appointment prior to the interview. State any assumptions you have made.

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COMMITMENT 100 MANAGEMENT 70 EXP IDEAS 65 CHARITY EXP 55 EDUCATION 10