In Stephen Barth's and David Hayes's formulation, the STEM acronym stands for "Select," "Teach," "Educate," and "Manage." Barth and Hayes argue that this process will help employers reduce employee error and, in turn, the likelihood of litigation.
"Select" refers to choosing the right person for any given position; this involves closely adhering to the stated requirements for any given position. The individual selected must have the appropriate qualifications, each of which can be verified.
"Teach" pertains to employee training; this should follow clearly defined methods. Success in this regard should also be evaluated with feedback mechanisms, such as competency tests.
"Educate" is concerned with managers' responsibilities and activities for self-education; managers should stay up-to-date and actively refresh their knowledge. This enables them to pass relevant information on to employees.
"Manage" refers to the consistent and accurate performance of duties, which will greatly help reduce any likelihood of litigation. Planning, organizing, controlling, and motivating are considered the four core functions of management.