Recruitment and Selection

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Details
Case Code:

HROB044

Case Length:

5

Period:

Pub Date:

2004

Teaching Note:

YES

Price (Rs):

200

Organization:

Not Applicable

Industry:

General Business

Country:

Not Applicable

Themes:

Recruitment & Selection

Abstract

In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Selection is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best results. These caselets discuss the importance of having an effective recruitment and selection policy. They discuss the importance of a good selection process that starts with gathering complete information about the applicant from his application form and ends with inducting the candidate into the organization.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

  • Challenges in the process of recruiting and selecting employees.
Contents

Matrix Enterprises (Matrix) is one of the growing firms in the telecom industry. Matrix had recently won the “Company of the Year – 2003,” award for excellence, which was sponsored by one of the leading business magazines. The award was given to Matrix for its Six Sigma initiative in its sourcing and recruiting activities. This initiative of Matrix helped the company add substantially to its bottom line.

While speaking to the media after receiving this award, Shalini Mehta, the CEO of Matrix, attributed the success of Six Sigma to the concerted effort of employees belonging to all the levels of the organization. Emphasizing on the long-term benefits that the Six Sigma initiative accrued to Matrix, Mehta said, “It has been five years since its inception and we expect more positive results as we extend this program to other aspects of management as well.”

In simple terms, Six Sigma is a process-improvement strategy or an initiative to analyze and improve any business function in an organization. It is a robust methodology that is data-driven and that aims at minimizing deviations from the set standards for the company. Six Sigma is not a new jargon at Matrix. This concept had first been implemented as a quality control measure in the production department. Having reaped the benefits of this methodology for process improvement, the company ventured into implementing this concept in the HR department too. The introduction of Six Sigma in sourcing and recruiting activities helped Matrix measure each step of the processes, analyze and make decisions based on the data collected, and evaluate the outcome of the processes. A basic understanding of the factors that result in deviations from the standards set, helps the company in minimizing the deviations and work towards improving the processes. Thus, the Six Sigma initiative at Matrix adopts the following stages of process improvement:

  • Define – The goals of the initiative are defined at this stage. After identifying that recruiting could be a business process which can be improved through Six Sigma, the critical requirements of the initiative are defined, and linked to the business needs of the firm.
  • Measure – In this phase, data regarding the characteristics of recruitment process is collected and measured for determining its effectiveness.
  • Analyze – After studying the processes, the data collected is analyzed and the root cause for the defects is determined at this stage.
  • Improve – Having studied the root cause for the defects in the processes, an effort to work upon these defects and minimize them, is initiated by Matrix.

Control – This phase involves the documentation of process conditions with the help of statistical process control tools. Depending on the findings of the above stages, the necessity of revisiting any of the above processes is determined and the success of the eventual process is evaluated.

Thus by following the above stages of Six Sigma implementation, Matrix benefited immensely in terms of improving the effectiveness of recruitment and sourcing activities. Matrix organized training programs for its managers to understand the concept of Six Sigma. These managers in turn, trained their employees in its implementation. The top management insisted that these people be trained well as the concept was based on a complicated statistical tool. The management also provided adequate resources, in terms of financial and knowledgeable manpower resources for the implementation of Six Sigma. Matrix in fact, hired an external consultant during the initial stages who guided the company during its implementation phase. Thus, the top management was committed towards the successful implementation of the program.

Thus, Six Sigma, which was started as a rough framework to improve the effectiveness of hiring in the company, brought the desired results of minimized deviations and an improved process at Matrix.

1. Matrix initiated the Six Sigma methodology in its hiring process as a framework to improve the effectiveness of the hiring process in the company. Discuss the factors that determine the appropriateness of using this complicated statistical tool in the hiring process of the company.

2. Organizations in the present business scenario are introducing innovative techniques to improve the overall effectiveness of their hiring process. Six Sigma is one of them. Discuss the ways in which Six Sigma can help the organization improve its hiring process.

Integrated Solutions was a growing organization in the telecom industry. Its phenomenal growth in the recent past led to a huge manpower requirement in the company. Recruiting the required resources was a challenging task for the HR department as there was a dearth of talent in human resources in the market with too many companies vying for the same talent. The CEO of the company called for a meeting of all the heads of departments to discuss ways in which the manpower requirement could be met. The CEO invited suggestions about innovative ways of recruiting top talent in the industry. Anupama Roy, the HR manager had a point to make. She said, “This is a difficult task for us, as most of the openings in the company are in the middle and top managerial positions, for which we require experienced personnel. Unfortunately, most of them will be already employed and busy in their jobs. So, our job now is to attract this group of passive job- seekers.” At this point, one of the project leaders raised a doubt, “In such a competitive business scenario, how successful will we be in attracting the attention of skilled employees?” The CEO agreed and so did Roy. “Perhaps, we could conduct a study to identify ways of capturing this potential group of candidates,” suggested Roy. It was then decided that a team of members from the HR department will study the way employees in organizations sought for new opportunities in the job market.

Accordingly, a team of three members headed by Amit Bajaj set out to study ways in which passive job-seekers could be attracted. The survey conducted by Bajaj and his team dealt with issues like how the potential job seekers in the industry spent their free time, the web-sites they visited, their intentions of seeking a new job, their satisfaction levels in their present jobs, their expectations about an ideal work environment, etc. After a week, Bajaj was ready with the report and presented it in a meeting, which was also attended by the CEO, the HR manager and the Systems manager. The report found that a person already possessing a job would approach another organization if invited by a friend or associate working for the same organization. The report also brought to light, the fact that people desist seeking new opportunities elsewhere because of the long time wasted during the entire hiring cycle.

Based on the above report, Roy, in consultation with the CEO, Systems manager and Bajaj, drafted the following plan of action:

Integrated Solutions initiated a new scheme called, 'Invite a friend,' based on the finding that people approach organizations when advised by acquaintances already working for those firms. Accordingly, the Invite a friend scheme was introduced to encourage employees to bring in potential candidates from among friends and acquaintances for the various positions available in the organization. In case the candidate got selected, the employee who referred him/her would be rewarded. Within a year of its introduction, it was found that around 40%-50% of the new employees were recruited through this scheme.

  • The company also hired in-house head hunters who were completely devoted to the process of hiring talented people. This reduced the cycle time involved during the entire hiring procedure, which in turn attracted potential candidates.
  • Integrated Solutions linked the corporate web-site to the sites that are more likely to be visited by a maximum number of potential candidates. This increased the number of hits by job-seekers to their web-site. This in turn, helped attract passive job-seekers. The organizational members mingled with people belonging to other companies at various social gatherings and festivals and talked positively about Integrated Solutions.

Thus, the innovative ways of recruitment at Integrated Solutions helped the firm attract nearly 10% of the top talent in the industry. They also helped reduce the costs involved in the hiring process to a substantial extent. Soon, the company gained a strong competitive edge over its rivals in the industry through the strength of its human capital. This reinforced the belief that if an organization can manage to get the best talent present in the industry and succeed in retaining it, then it would remain the leader in the industry, merely on the strength of its human resources.

 

1. Integrated Solutions initiated a number of steps to attract the top talent in the industry as discussed in the case. Briefly describe the factors that are to be considered by the company before framing its recruitment policy.

2. Evaluate the success of the recruitment process initiated by Integrated Solutions.

It was an important day for Abhay Mittal, a management graduate seeking an employment opportunity in the competitive business environment. He received an interview call from one of the nation's leading private sector banks for the post of Relationship Manager (RM). His selection as an RM would be just the right break for Mittal in terms of the exposure and experience he would get in this customer-oriented business environment.

The responsibility of an RM includes providing important customers with complete and integrated investment advice. The select customers were those who made huge investments in the various products of the bank. The RM must also seek to attract prospective customers who had the potential to make heavy investments with the bank. Mittal was excited as he had been waiting for a call from this bank for quite some time. He then prepared for his interview – by reading the company's performance and history, making a quick SWOT analysis of the bank, and getting his documents ready for the interview. He also organized a mock interview with his friend who was an HR Manager in a consultancy firm. Having brushed up the fundamentals in his areas of interest and study, Mittal was all set for the interview the following day.

However, the interview proved to be a nightmare. It started an hour behind schedule and Mittal was kept waiting with no intimation of the changed schedule. The reception could not provide him any relevant information. Mittal, however, kept his cool and waited patiently for his turn. Finally, after an hour, he was called in. He firmly knocked on the door before entering the interview hall. The hall was huge with the panel of members seated in a corner. The panel consisted of seven members, none of whom, according to Mittal seemed friendly and approachable. He was made to sit on a chair that seemed likely to break with the slightest jerk. He however,  managed to sit, leaning forward slightly and tried to listen to the panel.

A long silence followed. Mittal then hesitatingly ventured to initiate the conversation. “Here are the certificates in proof of my academic qualifications,” he said. This was followed by a quick response from the person sitting to his left. “It is not a bundle of certificates we are interested in, young man. They are no proof of how capable you are to handle the stress you would experience in case of your selection.” Mittal was taken aback for a moment. However, he gave a gentle smile and said that he was ready for the interview.

Mittal encountered a barrage of questions, most of which seemed irrelevant to the job of an RM. Although he could answer most of the questions, he was never allowed to answer them completely. He was constantly interrupted by the panel members while trying to answer the questions posed by each one of them. Most of the questions were sarcastic and cynical in nature. Mittal was given ambiguous instructions and asked to solve a situational case. He was then put through imaginative situations that required him to make tough decisions. Mittal could feel the tension creeping into him. Although he handled the questions well, he felt he could have done better if the panel had been more approachable. There was complete silence for some time.

The panel members inquired if Mittal had any questions to ask. By then, Mittal was exhausted and longed to leave the room. He kept his calm and said that there was nothing that he would like to ask, even though he had prepared a short list of questions the previous evening.

The members assured him that they would get back to him soon. Mittal thanked the panel and left the room in disgust.

1. What kind of interview do you think Abhay Mittal had to face? Describe the basic features of such an interview.

2. Discuss the various other kinds of interviews that could be used by organizations to make their selection process effective. Also discuss the advantages and disadvantages of each of these methods of selection.

Regal Attires is an upcoming garments manufacturer, which planned to expand its sales to around 15 new cities in the country by the end of the financial year. To achieve this, Regal had to increase its manpower substantially. It placed advertisements in all the leading newspapers and magazines stating its requirements. The HR department worked hard to attract the best resources. It undertook a massive recruitment drive that covered all parts of the country. In response to these advertisements, Regal received a large number of applications for each position.

Among the various openings that Regal had, the position of the sales executive was very important, not only in terms of the number of salesmen required but also the competencies they needed to possess. This was because the salesmen played a very crucial role in generating revenues for the company. Vishal Mehra, the HR manager, wanted only experienced candidates for this position. The key competencies that Mehra looked for in candidates included the initiative of the candidate, his willingness to learn, his love for traveling, his self-confidence, his ability to convince people, his communication and interpersonal skills, his ability to work in a team, his professionalism at work, etc. The interviews basically aimed at rating the candidates on these competencies.

Mehra was however not convinced about the effectiveness of the regular interviews as he felt that they do not succeed in selecting the candidates with the right skills and abilities. According to him, most of the traditional interviews comprised of questions that typically required the candidates to answer in 'yes? or 'no.? This, according to Mehra, was by no means enough to judge the candidate?s skills and abilities for the job.

The interviews conducted by Mehra, were a little different from the one discussed above. His interview model was a structured one that consisted of a specific set of questions which evaluated the candidates? capabilities on the above competencies. Though structured, his questions made the candidates describe past and real-life situations that brought out specific job-related competencies. The interview would usually start off with questions like, “Describe a situation where...,” which allowed Mehra to understand how the candidate would behave in a particular business situation. Mehra firmly believed that questions like these brought out the true worth of the candidates and therefore, such behavior-based interviewing helped him select the right candidate for the right job. For example, in this case, where Mehra wants to select candidates for the position of salesmen, questions like, “Which was the most difficult sale that you have ever made? And how did you convince the customer to go for the product?” helped him to assess the convincing skills of the candidate.

Although Mehra?s interviews succeeded in selecting the right candidate in more than 50 percent of the cases, there were also some instances in which the candidates selected by him proved to be ineffective at their jobs.

The above case highlights the fact that even though past performance of a candidate might be effective in predicting his future behavior to a certain extent, it does not completely succeed in selecting the right candidate for a job. This is because, over a period, trends in selecting candidates have been changing and over-reliance on a particular type of interviewing process proves to be ineffective. It is therefore advisable that a combination of selection tools may be used to address the issues arising in the selection process.

1. Vishal Mehra used the behavior-based interviewing technique to select candidates for the position of salesmen at Regal Attires. Briefly describe the characteristics of a behavior-based interview.

2. Although, Mehra succeeded in selecting the right candidate in more than 50 percent of the cases, there were instances of the selection tool?s failure in its objective. Citing the case of Regal Attires, discuss the various benefits and pitfalls of implementing the behavioral-interviewing technique of selection.

Keywords

Business environment, organizations, requirements, recruitment policy, the vacant positions, wrong candidate, rejecting, right candidate, costly, mistakes, external factors, minimal, HR department, selection policy, tools, gathering complete, information, applicant, application form, inducting

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