HR Presentation Recruitment Org Perspective Group 3

8/8/2019 HR Presentation Recruitment Org Perspective Group 3

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RECRUITMENT: AN ORGANIZATIONALRECRUITMENT: AN ORGANIZATIONAL

PERSPECTIVEPERSPECTIVE

Presented by:Presented by:--

Praveen Kumar (2009SMF6684)Praveen Kumar (2009SMF6684)

RakeshRakesh AgarwalAgarwal ((2009SMF6539)2009SMF6539)

SaurabhSaurabh Gupta (Gupta (2009SMF6555)2009SMF6555)

SubhadipSubhadip SarkarSarkar (2009SMF6565)(2009SMF6565)

SulabhSulabh SoodSood (2009SMF6593)(2009SMF6593)

TajinderTajinder Singh (2009SMF6544)Singh (2009SMF6544)


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AgendaAgenda

IntroductionIntroduction RecruitmentRecruitment-- the essencethe essence,, the skills required, the ethical issuesthe skills required, the ethical issues

Recruitment on CampusRecruitment on Campus

The Google recruitmentThe Google recruitment

Seeking CompetenceSeeking Competence--methods and fit.methods and fit. Hiring for the Organization and not the jobHiring for the Organization and not the job--

-- Sun MicrosystemsSun Microsystems

-- ToyotaToyota

The CEO recruitmentThe CEO recruitment

Succession planning at GESuccession planning at GE

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RecruitmentRecruitment

LLook to hire and promote energetic people who are passionate about whatook to hire and promote energetic people who are passionate about whatthey do. They will pay great dividends down the line. Skills can be acquiredthey do. They will pay great dividends down the line. Skills can be acquired

if you are passionate about your jobif you are passionate about your job --

Jack WelchJack Welch

(ex(ex--CEO, General Electric)CEO, General Electric)

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Equip your RecruitmentEquip your Recruitment tteameam

Educate, train, retrainand develop

Provide them withProvide them withTechnology andTechnology and

selection toolsselection tools

Reward system shouldReward system shouldencourage resultsencourage resultsachieved in a wayachieved in a way

aligned toaligned toorganizational valueorganizational value

systemsystem

TheThe quality of the talent and structure in recruitment teamquality of the talent and structure in recruitment teamwill finally make the differential.will finally make the differential.

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Getting the ethics right

From employers sideFrom employers side::

Employers lying about why they are hiring someone and notEmployers lying about why they are hiring someone and not

admitting/disclosing certain problems within their company.admitting/disclosing certain problems within their company.

From employee s sideFrom employee s side::

Employees hiding certain truths (usually their last drawn salary, jobEmployees hiding certain truths (usually their last drawn salary, jobresponsibilities, why they left their job and their educational achievements).responsibilities, why they left their job and their educational achievements).

So finding out the truth is very important in an interview, which is the mostSo finding out the truth is very important in an interview, which is the mosttough of the things to do.tough of the things to do.

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RECRUITMENT ON CAMPUSRECRUITMENT ON CAMPUS

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Catch them young - the obvious benefits

The young graduates bring with themThe young graduates bring with them fresh ideas, perspectivesfresh ideas, perspectives and aand a zeal tozeal toperformperform..

Companies get the opportunity to choose from aCompanies get the opportunity to choose from a vast poolvast pool and select theand select the bestbesttalent in a short span of timetalent in a short span of time..

Recruiters end upRecruiters end up saving a lot of time and effortssaving a lot of time and efforts that go in advertisingthat go in advertising

vacancies, screening and eventually selecting applicants for employment.vacancies, screening and eventually selecting applicants for employment. An early association with the suitable candidates also open up avenues forAn early association with the suitable candidates also open up avenues for

hiring individuals who may go a long wayhiring individuals who may go a long way with the company.with the company.

Flexibility of allocationFlexibility of allocation in any business division.in any business division.

Gives the organizations a chance toGives the organizations a chance to establish a goodwillestablish a goodwill with the institutionwith the institutionand building long term relationships.and building long term relationships.

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The Process

PLANPLAN

- Form additional manpower plan

- Identify campuses to recruit on

REACH OUTREACH OUT

- Secure place in queue on each campus

- Conduct Pre-placement talks- Check application forms of candidates

SELECTSELECT

-- Conduct written tests / Interview intensively for competenceConduct written tests / Interview intensively for competence

-- Cross check for inconsistenciesCross check for inconsistencies

-- Identify suitable candidates and make the offers.Identify suitable candidates and make the offers.

KEEP IN TOUCHKEEP IN TOUCH

-- Informal interactionInformal interaction

-- Advise through final years specializationAdvise through final years specialization

-- Provide support to ease stressProvide support to ease stress

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Campus Recruitment : What the organizations do

Vie for theVie for the intellectually superiorintellectually superior at theat the best campusesbest campuses(faculty strengths,(faculty strengths,quality of classroom education, excellent infrastructure ).quality of classroom education, excellent infrastructure ).

Most recruitment teams comprise of aMost recruitment teams comprise of a senior HR managersenior HR manager and aand a line managerline managerwith a thorough knowledge of the organization and the job. The teamwith a thorough knowledge of the organization and the job. The teamcomposition reflects on the sincerity of the organization.composition reflects on the sincerity of the organization.

Salary often doesnt top the list of prioritiesSalary often doesnt top the list of priorities -- pay smartly, build possibility ofpay smartly, build possibility ofstock ownershipstock ownership to foster increased responsibility.to foster increased responsibility.

Project Project the companys culture and USPthe companys culture and USP( learning environment, foreign( learning environment, foreignassignments, scope to build a long term career )assignments, scope to build a long term career )

Dont promise what you cannot deliverDont promise what you cannot deliver, show the hard facts as well, show the hard facts as well

Getting ahead of the race throughGetting ahead of the race through summer placements and campussummer placements and campusrelationshipsrelationships..

Its not Its not everyones cup of teaeveryones cup of tea--doubledouble check for inconsistencies.check for inconsistencies.

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Google ( The king of Employment Branding)Google ( The king of Employment Branding)

First to develop a recruiting cultureFirst to develop a recruiting culture

Work is the primary attraction and retention toolWork is the primary attraction and retention tool

Salient featuresSalient features--

oo Working on interesting workWorking on interesting work

oo Learning continuouslyLearning continuously

oo Constantly challenged to do moreConstantly challenged to do moreoo Feeling that they are adding valueFeeling that they are adding value

20% work: Each individual can devote 20% of their time in researching20% work: Each individual can devote 20% of their time in researchingindividually selected projects.individually selected projects. EgEg. Google group and Google news. Google group and Google news

Attrition rate almost nilAttrition rate almost nil

Worlds largest recruiting budgetWorlds largest recruiting budget

Google has 1 recruiter for 14 employeesGoogle has 1 recruiter for 14 employees

Google has created more than 1000 millionaires through stock optionsGoogle has created more than 1000 millionaires through stock options

The kind of money it gives sometimes attracts people who solely want toThe kind of money it gives sometimes attracts people who solely want to

work for moneywork for money A case study of Google recruiting article by Dr. John SullivanA case study of Google recruiting article by Dr. John Sullivan16/02/2010 10


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Benefits to employees in silicon valley officeBenefits to employees in silicon valley office

oo Flex hoursFlex hours

oo Casual dress everydayCasual dress everyday

oo Onsite physician, dental care and yoga expertsOnsite physician, dental care and yoga experts

oo Stock option for everyoneStock option for everyone

oo Onsite gymOnsite gym

oo Free recreationFree recreation

oo Near site child care centreNear site child care centre

oo Employee referral bonus programEmployee referral bonus program

oo Maternity and parental leaveMaternity and parental leave

oo Free meals including breakfast, lunch and dinnerFree meals including breakfast, lunch and dinneroo 5000$ grant on buying an electric vehicle5000$ grant on buying an electric vehicle

A case study of Google recruiting article by Dr. John SullivanA case study of Google recruiting article by Dr. John Sullivan16/02/2010 11


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The Google recruiting machineThe Google recruiting machine

Googles college ambassador programGoogles college ambassador program

Continuous presence in college campus through recruited students who actContinuous presence in college campus through recruited students who actas ambassadorsas ambassadors

Key task of a college ambassadorKey task of a college ambassador

oo Spread the word about Google as a great place to workSpread the word about Google as a great place to work

oo Organize various events distribute free food during examsOrganize various events distribute free food during exams Other Google recruiting innovationOther Google recruiting innovation

oo Google gamesGoogle games

oo Recruitment billboards for highwaysRecruitment billboards for highways

oo ContestsContests

oo BlogsBlogs

oo Hires a large number of PhD for who like to go deep in unexplored areasHires a large number of PhD for who like to go deep in unexplored areas

The Google recruiting machine rolls on with Googles college ambassador program by Dr. J SullivanThe Google recruiting machine rolls on with Googles college ambassador program by Dr. J Sullivan

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SEEKING COMPETENCESEEKING COMPETENCE

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Fit is the mantra

Fit Fit is a measure of how closely a candidates mental makeup and personalis a measure of how closely a candidates mental makeup and personalvalues match those of the companysvalues match those of the companys..

Two types of Fit are required in the personTwo types of Fit are required in the person--organization Fit model:organization Fit model:

1)1) Fit between the individual's KSA's and the taskFit between the individual's KSA's and the task demands or requirements ofdemands or requirements of

the job;the job;2)2) Fit between the personality of the individualFit between the personality of the individual (e.g., values, beliefs, interests)(e.g., values, beliefs, interests)

and the cultureand the culture or climate of the organizationor climate of the organization

The conventional selection models focus almost completely on the first FitThe conventional selection models focus almost completely on the first Fit(KSA's and job) and is geared more towards finding new employees than(KSA's and job) and is geared more towards finding new employees thanretaining them. The later focuses on the whole person in an attempt to satisfyretaining them. The later focuses on the whole person in an attempt to satisfythe individual enough to stay by matching the culture of the organization andthe individual enough to stay by matching the culture of the organization andthe individualthe individual

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The Bilateral Fit

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The Reebok FitThe Reebok Fit

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YOUTHYOUTH::As Reeboks consumers are young, the company stresses youth. So, theAs Reeboks consumers are young, the company stresses youth. So, theaverage age of Reebok is 28 years.average age of Reebok is 28 years.

A SPORTYA SPORTYATTITUDE:ATTITUDE:

Employees shouldEmployees shouldhave a passion for thehave a passion for theFitness business andFitness business andreflect the companysreflect the companys

aspirationsaspirations..

HANDS ON:HANDS ON:

As Reebok has onlyAs Reebok has only26 employees, the26 employees, theability to get onesability to get ones

hands dirty is crucial.hands dirty is crucial.

INFORMAL:INFORMAL:Employees mustEmployees musthave an ability tohave an ability to

cope with informality,cope with informality,a flat organization,a flat organization,

and absence ofand absence of

hierarchies.hierarchies.

EMPOWERED:EMPOWERED: Employees must be able to take decisions independently andEmployees must be able to take decisions independently andperform consistently with their clearly defined roles.perform consistently with their clearly defined roles.

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The Reebok FitHow Pepsi hires for its Fit

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People Organization Fit: Quaker Chemical Corporation

QCC conducted a "Resign/Rehire" exercise with their global commercialQCC conducted a "Resign/Rehire" exercise with their global commercialemployees in 1993 Annual Human Resource Review.employees in 1993 Annual Human Resource Review.

The scenario asked, If all of our employees resigned on Friday, changed theirThe scenario asked, If all of our employees resigned on Friday, changed theirminds over the weekend, and requested to be rehired on the followingminds over the weekend, and requested to be rehired on the following

Monday, would we rehire every one of them?Monday, would we rehire every one of them?

If the answer was "no"If the answer was "no"----and in many cases it wasand in many cases it was----they addressed a morethey addressed a morecompelling question: Why did they continue to retain them? And what reallycompelling question: Why did they continue to retain them? And what reallymade the difference between those employees they wanted to rehire andmade the difference between those employees they wanted to rehire and

those they didn't? An Evaluation procedure was developed to find out this.those they didn't? An Evaluation procedure was developed to find out this.

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The process of evaluation in QCCThe process of evaluation in QCC

ThisThis evaluation process rated each employee on five factors. The firstevaluation process rated each employee on five factors. The first fourfour--education, language skills, industry, and job experienceeducation, language skills, industry, and job experience----were proficiencywere proficiencycredentials.credentials.

The fifth factor was aThe fifth factor was a conglomeration of subjective criteria, includingconglomeration of subjective criteria, includinglikability, sense oflikability, sense of humorhumor, ability as a team player, ability as a team player, and others., and others.

It soon became clear that although QCC rated these areas equally on aIt soon became clear that although QCC rated these areas equally on ascale of 1 to 10,scale of 1 to 10, employees who rated high on objective criteriaemployees who rated high on objective criteria (proficiency(proficiency

credentials)credentials) andand low on subjective qualitieslow on subjective qualities (personal credentials) were(personal credentials) were fivefivetimes as likely not to be rehiredtimes as likely not to be rehired as those who scored the opposite way.as those who scored the opposite way.

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ConclusionConclusion Quaker Chemical CorporationQuaker Chemical Corporation

TheseThese subjective, unquantifiable personal characteristics appeared to be asubjective, unquantifiable personal characteristics appeared to be amajor key to the successmajor key to the success or failure of an employee, and while most hiringor failure of an employee, and while most hiring

managers intuitively understood this, it had been virtually ignored in themanagers intuitively understood this, it had been virtually ignored in thestaffing process.staffing process.

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Hiring for the organization and not the job

Sun Microsystems (USA)Sun Microsystems (USA)

oo At Sun, potential hires at all levels are brought into the organization from fourAt Sun, potential hires at all levels are brought into the organization from fourto seven times for interview with up to twenty interviewersto seven times for interview with up to twenty interviewers

Toyota (USA)Toyota (USA)

oo Screens 50,000 applicants for 3,000 jobsScreens 50,000 applicants for 3,000 jobsoo Each employee hired invests at least 18 hours in a selection process thatEach employee hired invests at least 18 hours in a selection process that

includes a general knowledge exam, a test of attitudes towards work, anincludes a general knowledge exam, a test of attitudes towards work, aninterpersonal skills assessment center, a manufacturing exercise designed tointerpersonal skills assessment center, a manufacturing exercise designed to

provide a realistic job interview of assembly work, an extensive personalprovide a realistic job interview of assembly work, an extensive personal

interview, and a physical examinterview, and a physical exam

Hiring for the organization, not the job article in Academy of Management Executive, 1991 Vol. 5 No.4Hiring for the organization, not the job article in Academy of Management Executive, 1991 Vol. 5 No.4by Gerald E. Ledford Jr., David E. Bowen and Barry R. Nathanby Gerald E. Ledford Jr., David E. Bowen and Barry R. Nathan

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Fit is bidirectional

The Fit is not only from the Organization's perspective. It is other way roundThe Fit is not only from the Organization's perspective. It is other way roundtoo. It may happen that the person is verytoo. It may happen that the person is very Proficiently FitProficiently Fit but the Organizationbut the Organizationis not.is not.

Here is an example of such a case:Here is an example of such a case:

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THE CEO HUNTTHE CEO HUNT

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New CEO Why we need a new one

Reasons for which a company needs change in the top positionReasons for which a company needs change in the top position --

The present one is old and retiring.The present one is old and retiring.

Though young and energetic, could not perform.Though young and energetic, could not perform.

Some facts about modern day CEOSome facts about modern day CEO Global average of CEO tenure was just 7Global average of CEO tenure was just 7--6 years in 2005, down from 96 years in 2005, down from 9--55years in 1995.years in 1995.

Two out of every five new CEOs fail in the first 18 months. (2005 data).Two out of every five new CEOs fail in the first 18 months. (2005 data).[ Source: Ending the CEO Succession Crisis, by Ram[ Source: Ending the CEO Succession Crisis, by Ram CharanCharan, HBR, HBR Feb 2005 ]Feb 2005 ]

Investors were too demanding and the CEO could not complyInvestors were too demanding and the CEO could not comply

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Sourcing the top man

The Trouble with outsidersThe Trouble with outsiders More than a third of theMore than a third of the FortuneFortune 1,000 companies are run by external recruits.1,000 companies are run by external recruits. Outsiders are generally chosen because they areOutsiders are generally chosen because they are expected to turn around theexpected to turn around thecompanycompany or restructure the portfolio withor restructure the portfolio with fresh bent of mindfresh bent of mind..In North America, 55% of outside CEOs who departed in 2003 were forced toIn North America, 55% of outside CEOs who departed in 2003 were forced to

resign by their boards, compared with 34% of insiders.resign by their boards, compared with 34% of insiders.

New CEONew CEO

Succession PlanSuccession Plan HiringHiring

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Sourcing the top man (Contd.)

The job is to lead a hugely complex organization over many yearsThe job is to lead a hugely complex organization over many years throughthroughan unpredictable progression of shifting markets and competitive terrainsan unpredictable progression of shifting markets and competitive terrainsand not just making short term financial profit.and not just making short term financial profit.

Even under the best circumstances, CEO selection is somethingEven under the best circumstances, CEO selection is something of a

batting average.

Companies will not hit successfully every time. But two or moreconsecutive outsider outs can have a devastating effect on

employees, partners, and strategic position.

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The Insider trouble

As "known qualities" they may sail through a lax dueAs "known qualities" they may sail through a lax due--diligence process.diligence process.

Their social networks and psychological tiesTheir social networks and psychological ties may complicate efforts tomay complicate efforts tochange the culture.change the culture.

Individuals from functional areas may not be up to the taskIndividuals from functional areas may not be up to the task of leading theof leading the

entire business.entire business.

TheThe credibility of the outgoing CEOcredibility of the outgoing CEO or management team may beor management team may be so sulliedso sulliedthat only a new broom can sweep the company clean.that only a new broom can sweep the company clean.

Implication:Implication:

Companies that have no ongoing senior management development programCompanies that have no ongoing senior management development program

(currently more the rule than the exception) will in all probability need to look(currently more the rule than the exception) will in all probability need to lookoutside, maybe for as long as the next ten to 20 years.outside, maybe for as long as the next ten to 20 years.

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The problem with CEO development

In CEO succession, it takes a ton of ore to produce an ounce of gold.In CEO succession, it takes a ton of ore to produce an ounce of gold.

A $25 billion corporation with 70,000 employees, for instance, may haveA $25 billion corporation with 70,000 employees, for instance, may have3,000 leaders, perhaps 50 to 100 of whom would qualify for one of the ten3,000 leaders, perhaps 50 to 100 of whom would qualify for one of the ten

jobs just below the top.jobs just below the top.

That same company would be fortunate to field five strong internalThat same company would be fortunate to field five strong internalcandidates for CEOcandidates for CEO -- and two or three is a more realistic number.and two or three is a more realistic number.

What guides to select candidates for top post:What guides to select candidates for top post:--

Functional KnowledgeFunctional Knowledge

Charismatic PersonalityCharismatic Personality

Past PerformancePast Performance

Entrepreneurial TraitsEntrepreneurial Traits

Fit with organizationsFit with organizationsstrategic goals andstrategic goals andCultureCulture

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The trouble with Boards

DirectorsDirectors describe CEO succession as one of their most consuming issues,describe CEO succession as one of their most consuming issues,

theythey don't appear consumeddon't appear consumed by it.by it.

In a survey by Mercer Delta and the University of Southern California, 40% ofIn a survey by Mercer Delta and the University of Southern California, 40% ofcorporate directors called their involvement in CEO succession planning lesscorporate directors called their involvement in CEO succession planning lessthan optimal.than optimal.

Large majorities reported spendingLarge majorities reported spending more hours to monitoring accounting, risk,more hours to monitoring accounting, risk,and financial performanceand financial performance andand less time interacting with and preparingless time interacting with and preparing

potential CEO successorspotential CEO successors than on any other activity.than on any other activity.

Yet boards' work on succession represents probably 80% of the value theyYet boards' work on succession represents probably 80% of the value theydeliver.deliver.

The trouble with RecruitersJust three recruiters control 80% of the Fortune 100 CEO searchJust three recruiters control 80% of the Fortune 100 CEO searchmarket, and one or two people within those companies direct themarket, and one or two people within those companies direct themost important searchesmost important searches

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How to make the decisive callHow to make the decisive call

Get theGet the boardboard thoroughlythoroughly involvedinvolved..

DetermineDetermine critical strategic and cultural competenciescritical strategic and cultural competencies required for the post.required for the post.

Place the candidates in key positions to develop mindset.Place the candidates in key positions to develop mindset.

Put the candidate under microscope.Put the candidate under microscope.

Rule out political infightingRule out political infighting among candidates.among candidates. Look outside the company to map andLook outside the company to map and benchmark the talent marketbenchmark the talent market. How. How

do your people compare? Who might be available?do your people compare? Who might be available?

Companies shouldCompanies should think the unthinkablethink the unthinkable. Who would be put in the place of the. Who would be put in the place of thepresent CEO in the event of sudden need? Is anyone ready?present CEO in the event of sudden need? Is anyone ready?

Once decision is made, try to retain the candidates who are not selected.Once decision is made, try to retain the candidates who are not selected.

Have theHave the outgoing CEOoutgoing CEO and boardand board provide mentoringprovide mentoring to new CEO.to new CEO.

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Succession planning at General Electric

Continuous Supply of talent required for continuous growthContinuous Supply of talent required for continuous growth

Homegrown Talent preferred as they would understand the companys cultureHomegrown Talent preferred as they would understand the companys culturebetterbetter

Thus, Annual Review of Executive Talent in place since 1981Thus, Annual Review of Executive Talent in place since 1981

To identify employees who haveTo identify employees who have high potential and meet GEs standards forhigh potential and meet GEs standards for

results and adherence to corporate valuesresults and adherence to corporate values

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Succession planning at GE: How it was done

In 1994, Jack Welch and board of directors wanted toIn 1994, Jack Welch and board of directors wanted to

begin grooming a successorbegin grooming a successor

Initially a list of potential successors was prepared andInitially a list of potential successors was prepared and

each one was assessedeach one was assessed

The potential successors were given more responsibility and coached andThe potential successors were given more responsibility and coached andmentoredmentored

They were also encouraged to interact with board members during golf,They were also encouraged to interact with board members during golf,dining etc.dining etc.

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The method adoptedThe method adopted

Every December , HR chief would provide a detailed assessment ofeach candidates performance

Finally, List was narrowed down to Jeff Immelt, W James McNerneyand Robert L Nardelli

All of them were given opportunities to head major divisions Medical Systems, Aircraft Engines and, Turbines and Generators

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The final callThe final call

After making the final decision, Welch personally visited the twocandidates who did not get the job

On Sep 9 2001, Jeff Immelt was declared the new CEO of GE W James McNerney and Robert L Nardelli, moved on as the CEOs

of 3M and Home Depot, respectively.

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References

Ending the CEO Succession Crisis, by RamEnding the CEO Succession Crisis, by Ram CharanCharan, HBR, HBR Feb 2005Feb 2005

Hiring from Outside the Company: How New People Can Bring UnexpectedHiring from Outside the Company: How New People Can Bring UnexpectedProblems, Published : September 03, 2008 inProblems, Published : September 03, 2008 in Knowledge@WhartonKnowledge@Wharton

CEO Succession Crisis: Lessons Learned by George E Davis, HBRCEO Succession Crisis: Lessons Learned by George E Davis, HBR April 1999April 1999

www.mckinseyquarterly.com/Governance/Boards/Planning_for_your_next_CEO_www.mckinseyquarterly.com/Governance/Boards/Planning_for_your_next_CEO_25242524

Turnover at the Top by Bill Leonard, HBRTurnover at the Top by Bill Leonard, HBR May 2001May 2001

Montgomery, Clifford E. ,Montgomery, Clifford E. , "Organizational Fit is key to job success,"Organizational Fit is key to job success, HRHRMagazine, Jan 1996Magazine, Jan 1996

Hiring for the organization, not the job article in Academy of ManagementHiring for the organization, not the job article in Academy of Management

Executive, 1991 Vol. 5 No.4 by Gerald E. Ledford Jr., David E. Bowen and BarryExecutive, 1991 Vol. 5 No.4 by Gerald E. Ledford Jr., David E. Bowen and BarryR. NathanR. Nathan

The Google recruiting machine rolls on with Googles college ambassadorThe Google recruiting machine rolls on with Googles college ambassadorprogram by Dr. J Sullivanprogram by Dr. J Sullivan

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THANK YOUTHANK YOU

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Documents

HR Presentation Recruitment Org Perspective Group 3