5563-HRM- Case Study

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ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD(Commonwealth MBA / MPA Program)

Case study

Problems In Recruiting New Personnel Into Bata

Pakistan

ASSIGNMENT No. 2

11/15/2011


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Case Study

Which are the points I (HR manager) have to keep in mind for recruiting new personnel into

Bata Pakistan Pvt Ltd

If I am H.R. Manager of a footwear BATA manufacturing company and in this company

want recruit new employees then I will take information from HODs How many employees

need to work in organization?

Abstract

After having decided how many persons would be needed it is necessary to prepare a job analysiswhich records details of training, skills, qualifications, experiences, which are needed for a job.

Job analysis includes the preparation of job descriptions and job specifications so right man on

right job on right time will gate and organization goal will success

Company introduction:

Bata Shoes (Czech: Baa orBaovy zvody) is a large, family owned shoe company based in

Bermuda but currently headquartered in Lausanne, Switzerland, operating 3 business unitsworldwide Bata Metro Markets, Bata Emerging Markets and Bata Branded Business. It has a

retail presence in over 50 countries and production facilities in 26 countries. In its history the

company has sold more than 14 billion pairs of shoes.

Foundation, Tom Baa

The company was founded in 1894 Zln (then Austro-Hungarian Empire, today the CzechRepublic) by Tom Baa (Czech pronunciation: [ toma baca] ), whose family had been

cobblers for generations. A large order from the army, military shoes and rising demand for them,

during World War I started rapid growth and small manufacture turned into modern industrial

concern, one of the first mass producers of shoes.

Tom Baa was recognized for his social consciousness, establishing housing, cinemas and

advancement programmes for his employees. The phrase "work collectively, live individually" isone of his sayings. Baa recognized the potential of large-scale production, and was often called

the "Henry Ford of Eastern Europe". He saw technology as a means of progress, and wanted tomake the shoes as cheaply as possible so that the greatest number of people could access them

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http://en.wikipedia.org/wiki/Czech_languagehttp://en.wikipedia.org/wiki/Shoehttp://en.wikipedia.org/wiki/Bermudahttp://en.wikipedia.org/wiki/Lausannehttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Austro-Hungarian_Empirehttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Czech_languagehttp://en.wikipedia.org/wiki/Shoehttp://en.wikipedia.org/wiki/Bermudahttp://en.wikipedia.org/wiki/Lausannehttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Zl%C3%ADnhttp://en.wikipedia.org/wiki/Austro-Hungarian_Empirehttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Czech_Republichttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Wikipedia:IPA_for_Czech_and_Slovakhttp://en.wikipedia.org/wiki/Tom%C3%A1%C5%A1_Ba%C5%A5ahttp://en.wikipedia.org/wiki/Henry_Ford


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In 1932 Tom died in a plane crash at the age of 56 at the Zln airport (attempting to take off

under bad weather conditions) and his half-brother Jan Antonn Baa became head of the

company.

At the time of Tom's death, the Baa company employed 16,560 people, maintained 1,645

shops and 25 enterprises. Most of what Tom had built was centralized in Bohemia-Moravia

(15,770 employees, 1,500 shops, 25 enterprises) and Slovakia (250 employees and 2 enterprises).The total international contribution to the Baa organization at the time of Tomas's death consisted

of 20 international enterprises, 132 shops, and 790 employees.

Now the Bata shoe organization is the largest manufacture and under of footwear operations span

the globe through 75 companies in 60 countries which together buy, sell and produce shoes inalmost every country on earth. These include shoe factories, tanneries, engineering plants,

producing shoe machinery and moulds, product development studies, quality control laboratories,hosiery factories and 6300 retail stores and 100,000 franchises more then 60,000 people are

employed, producing and selling approximately 270 million pairs of shoes each year. Primarily forinternal markets .An additional 40,000 people and their families depend on hobs in support

services created by Bata operations .Now all these affairs are controlled by the foundries grandson.

Bata Pakistan Limited

Bata came into being in 1942 at distance on 18 km. from Lahorewith due entrepreneurial dynamism it expanded and grew by leaps

and bounds presently claiming to be the largest shoe manufacturing

unit in Pakistan.

Bata Pakistan comprises three divisions:

Production, Marketing And Administration:

It annually produces more than 12 million pairs of leather, rubber, canvas and PVC Plastic

footwear of high quality.

Bata has its own tannery where leather of high quality is produced and is being consumed ion themanufacture of footwear of all kinds of cater to various marketing segments and exports .In

accordance with the expansion program a new modern unit at maraka , Multan road Lahore was

established in 1984 which produces highly sophisticated leather shoes on the most modernmachines .likewise the company ,being leader in the market ,has future plans of further expansion

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besides updating existing auxiliary operations like quality control laboratory ,product development

department and engineering workshops, etc.

LOCAL PURCHASES:

The company mostly acquires raw material form different business people dwelling in Pakistan.The company through local purchases on the one side, encourages the local business people on the

other side, endeavors to safe valuable foreign exchange. Generally, its local purchases are Buckles,

Straps, lashes and chemicals that are used in production of leather, rubber, P.V.C. BSO whileworking for the progress of the country, sometimes suffers due to preference given to the local

purchases because the local businessmen dont possess the quality that can easily be assessed from

imports. Instead of having knowledge of all these aspects still the company prefers to buy fromlocal business community.

IMPORTS:

As mentioned earlier the company makes all out efforts to get raw material within Pakistan, then

no other option left except the import of that required material from other countries. The imports

are done through letter of credit which is the safest way of doing international business.Nevertheless, before placing an order of import, purchasing department makes comparison list of

prices, advantages and disadvantages associated with the prospective purchases of material from

one businessman to another businessman. Finally business whose rates are appropriate andyielding more advantages is given order to ship that specific merchandise in stipulated time.

Marketing

Marketing programmes that identify and satisfy customers needs have always been a top priority in

the B.S.O. As a result, entirely new types of selling systems have been created and standardsdeveloped that have influenced the shoe business world wide. These have resulted in marketing

polices and guidelines being laid down to assist the companies in training personnel and

introducing modern marketing techniques. They have helped to establish one of the most effect

retail distribution systems in international trade, which although standardized, retains enoughflexibility to encourage cultural diversity. Guidelines have been written covering a wide range of

subjects, including store locations and lay out, design standards, merchandising, inventory control

and staff training. which has led to cooperation between the companies and, at the same time,

stimulated and encouraged trade between regions and countries. Product development and theintroduction of brands is another aspect of marketing. Because of the importance placed on

marketing, standards and programmes are constantly being improved and updated throughseminars and conferences.

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The most important meeting of the year takes place each spring in Europe, when more than 200

participants from product development, marketing, retailing and personnel attend Shoehorn of one

week. If there is a single forum, a point at which the Bata year is focused, it is the world meeting atShoehorn.

Shoehorn was originally a shoe conference to which each company brought its best shoes: from

these were selected the shoe lines the organization would sell in coming seasons. Judging the shoesprovided a natural, competitive stimulus for the companies, and, as a result, the quality and range

of shoes steadily improved year after year.

As Shoehorn matured, it remained essentially a shoe conference, but gradually expanded to

included satellite conferences in marketing and retailing. Exhibition areas were expanded to enablethe companies to display their most creative work to each other. As store standardization grew in

importance, fully staffed, operating stores were built to show the latest features in design andselling methods. And outside experts in a wide range of business areas were brought in to leaven

the mix.

The evolution of Shoehorn coincided with fundamental changes in world markets. Fashions and

tastes were becoming more universal: styles in Europe were on the streets of Bangkok or Sao

Paulo within weeks sometimes sooner and customers were responding to the same marketingstimuli.

In the lat4e Seventies, a complete marketing and advertising programme was developed under the

slogan Bata understands Shoes, and offered to all the companies. The success of the

programmed which ran in newspapers all over the world at the same time, was instantaneous, andtoday the symbol, an open fan of shoes, is common everywhere in the world.

PRODUCTION DEPARTMENT

LEATHER FACTORY

Leather factory consists of several departments, is a crucial mechanized unit of Bata shoe

organization where different components of the shoe are prepared and combinations of these

components ultimately produce the shoes. Although leather shoes are produced in leather factoryyet two types of sales are used in manufacturing leather shoes.

Problem

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In Bata Pakistan Line managers often do not understand the whole process of recruitment.

Managers involved in the recruitment should not hire employees that should start as soon as

possible. This habit leads to poor recruitment and mis-profiling of individuals who will in turnbecome part of the problems in the system. Recruitment at an officer and managerial level should

be done effectively and one should remember that once you make the mistake it takes sometime

before that mistake is corrected. It may be costly to the organization. The three main causes of

the problem include a lack of specialist skills, poor quality applicants and pay inflexibility,

Many people in organizations today are in the wrong jobs and as a result, they are not utilizing

their full potential. This is compounded by the fact that some companies have built a tradition of

hiring people based on personal connections when the person is not qualified for the job. This is avivid case in most Organizations today including Bata.Most recruitment that involves managers

are done during discussions at lunch hour, at social clubs or during the coffee break time. All the

other processes that follow will only be a formality as the decision would have been made by linemanagers involved in the process.

Solution:

Steps Taken To Induct New Employees

Job Analysis: After having decided how many persons would be needed it is necessary to prepare

a job analysis which records details of training, skills, qualifications, experiences, which are

needed for a job. Job analysis includes the preparation of job descriptions and job specifications so

right man on right job on right time will gate and organization goal will success

Recruitment Policy: After job analysis I will make good recruitment policy. In this policy must

contain following elements:

Organization objectives - both in the short term and long term must be taken into

consideration as a basic parameter for recruitment decisions and needs of the personnel areawise job family wise.

Identification on the recruitment needs to take decisions regarding the balance of the

qualitative dimensions of the would be recruits. Preferred sources of recruitment which would be tapped by the organization.

Criteria of selection and preference

The cost of recruitment and financial implications of the same.

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D) Forecast of manpower recruitment: In this point will specify the Indents or requisition:

The jobs or operations or positions for which the person should be available.

Duration of their employment

Salary to be offered and any other conditions and terms of employment which the indenting

officer feels necessary.

Then I will use various stages in the recruitment process include:

Identifying the need to recruit

Identifying the job requirements.

Deciding the sources of potential recruits Deciding the selection method

Short listing candidates.

Selecting the successful

Notifying candidates of the outcomes

Appointing the successful candidate

Identifying the need to recruit: When a vacancy occurs the first issue to consider is whether

there is a need to fill it. There is also question of whether it is the same job that needs to be filled.

In considering this issue the employer should take account of the following alternatives:

Reorganization, Flexible working, unsung part time or casual staff, Using contractors, staff transferor promotion, Job sharing, computerization.

Identifying the job requirements. : This stage of the process entails being about the content of

the job. And the characteristics required of the person in order to perform the job to the necessary

standard. This means that there should first be a clear jibe description and the need to fill a

vacancy is an ideal opportunity to review any existing job description to ensure that is still meetsthe organizations requirements and personnel specification setting out the characteristics required

of the jobholder.

Content of the personnel or person specification: I will gather all information of recruitment so

I will make seven point plan as following:

1. Physical make-up- Health, appearance, bearing and speech

2. Attainments Education, qualification, experience.

3. General intelligence Intellectual capacity

4. Special aptitudes Mechanical, manual dexterity, facility in use of words of figures,

5. Interests Intellectual, practical, constructional, physically active, social artistic.

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6. Disposition Acceptability, influence over others, steadiness, dependability, self-reliance

7. Circumstances any special demands of the job, such as ability to work unsocial hours

travel abroad, etc

Five fold Grading System:

1. Impact on others physical make-up, appearance, speech and manner

2. Acquired qualification education, vocational training, and work experience.

3. Innate abilities quickness of comprehension and aptitude for learning

4. Motivation individual goals, consistency and determination in following them up,

success rate

5. Adjustment emotional stability, ability to stand up to stress and ability to get on withpeople.

Deciding the sources of potential recruits: There are number potential sources of candidatesfor jobs:

Internal Sources: I will find personnel needs are filled through transfer or promotions. Internalsource thought it is the main source of recruitment. After this needed candidate then I will use

External sources as following:

Organization itself: The first port of call when considering how to fill a vacancy will

usually be the organization itself and this can have advantages in terms of motivations, moral

and development as discussed above.

Word of mouth: Jobs may often be filled by existing employees letting their friends and

acquaintances know of any vacancies. While this approach will save the costs of advertisingor recruitment by some other.

Drawing up an Advertisement: When drawing up an advertisement the following rules should

be followed:

Consider the key aspects of the job and ensure that these are appropriately stressed.

Describe the organization and a few key features

State the job title and summarize the main duties or accountabilities.

Describe the location

Describe the method of application and any closing date.

Adapt the style of the advertisement is discriminatory. Newspaper and magazine advertisements: I will give advertisements in local newspaper,

journals and trade and professional periodicals stating the availed job duties and

responsibilities, emoluments, qualification and experience required for the job. For senorpost the market is more likely to be a national one, justifying the use of national newspaper,

although this is likely to prove costly.

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Job center and employment agencies : After this I will take help of Employment jobcentre.Agencies tend to specialize in one particular type of staff such as secretaries or accountants.

Selection consultants: I will take advice of selection consultants that they can bring

considerable expertise to the selection process and can frequently attract suitable candidates.

Executive search consultants: If I would like recruit higher position then I will take help of

Executive search consultant..

Schools and universities : I will take help of schools, collages to provide a flow of potentialemployees.

Internet : I will search employees on internet.

Selection Method : The selection process really begin with the organization choice of how theapplicant should respond to an advertisement

Application form or curriculum vitae : After this I will prepare selection method how

application should respond to an advertisement .

Application forms

Letters of applications

Telephone

Interview : A selection interview is a controlled conversation between an applicant for a job and

the employer or someone representing the employer, designed to test the suitability of the applicant

for the job in question.

I will use two types of interview: 1) Direct Interview : It is a straight forward , face to face

question answers session between the interviewer and the interviewee.

Non-direct interview : No direct questions are asked in this interview.

Conducting Successful interviews : There are a number of rules to be followed when conductingselection interviews these are follows :

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Before the interview, During the interview and After the interview

Selection Tests: The defects of the more traditional method of recruitment have led many

organizations to look for more objectives predicator of performance

Psychometric tests: Psychometric tests involve applying standard procedures to applicants in

such a way that their responses can be qualified.

Intelligence Tests: Intelligence testsare the oldest kind of psychometric test having been designed

by bidet and simon in 1905.

Aptitude and attainment tests: These test are designed to test particular aptitude or abilities and

can therefore be made very relevant to the job in question

Personality tests: Personality is an even vaguer word than intelligence and this is probably the

biggest problem with personality tests.

Medical Examination/Physical examination : Application who get over one or more of

the preliminary hurdles are sent for physical examination either to the organization physician

or to a medical officer approval.

Placement : After Medical Report fit for job interview a particular person is selected for agiven job, often more than one person may be selected for the jobs of similar nature. In the

second case, individual employees have to be put under individual supervisors with the

approval of the latter.

Personnel Report : Selected candidate will give appointment letter and joining date first

will fill joining report. I will made his personnel file and all estimated copies of certificateeducation & experience will filing in his personal file.

Orientation (Induction Proramme) : Selected candidate introduce with all employs and

give induction programme. During the period he is informed about the company and itsproducts. He is provided with a completed description of his job and also a copy of the rules,

policies and procedures to be followed by him. He will informed about his authority ,

responsibility, his superiors and subordinates. The new employee may also be taken roundthe office and plant and made familiar with activities and schemes of the enterprises.

Summary

Recruitment is essential to effective Human Resources Management. It is the heart of the whole HR

systems in the organization. The effectiveness of many other HR activities, such as selection and training

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depends largely on the quality of new employees attracted through the recruitment the recruitmentprocess.

Policies should always be reviewed as these are affected by the changing environment. Management

should get specific training on the process of recruitment to increase their awareness on the dangers of

wrong placements.

HR practitioners should be on the guard against all the malpractices and advocate for professional

approach through out the system. The HR should indicate disagreement in the event that biasing toward

certain candidates is creeping in and point out the repercussions that may follow in terms of performance

and motivation.

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5563-HRM- Case Study