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Task 1
One of the main
responsibilities of an organization’s human resource department is the
recruitment and selection of the right employees. These primary activities
are the first steps done in hiring people. In selecting the right
employees, organizations take note of several factors; however, positive
work attitudes and technical skills appear to be the most prioritized
qualities needed from employees in general (Rowden, 2002).
Typically, the initial operations of an
organization are made of informal recruitment and selection processes.
However, as the organization becomes more mature, the need for a
well-established human resource practice becomes realized. In addition,
the use of various selection methods and more objective qualifications
became a part of developing hiring decisions; these practices had been
observed frequently in larger organizations (Barber et al., 1999).
Dell Computer and Cisco
Systems are two large organizations operating in the computer and
electronics industry. In order to ensure both companies’ success, their
respective managements see to it that proper recruitment and selection
processes are utilized. In Dell Computer for instance, the company
utilized online services for its recruitment process. Recently, the
company has signed in a contract with Monster.com, one of the leading
global careers site. The site allows the worldwide access to Dell’s
company profile and offered job opportunities. The company’s human
resource professionals on the other gain access to a larger pool of online
applicants (Business Wire, 2000).
The site’s global network and
content can also be displayed in different languages, making it accessible
to almost every potential employee all over the world. Paul McKinnon, the
company’s senior vice president for human resource, noted that the use of
online services is a unique method of recruitment and facilitates Dell’s
goal of obtaining world-class talents (Business Wire, 2000).
The recruitment medium selected by Dell is
actually a good method as compared to conventional recruitment processes.
One of the reasons is that Dell itself is a global company; as it needs to
employ people to manage its international operations, online recruitment
allows Dell to reach out to foreign applicant in the easiest, fastest and
inexpensive manner. Being a large organization, online submission of
resumes is also helpful for the company’s human resource staff since
storing and organizing applications become easier with the help of an
information system.
For the applicants, using the online
recruitment process is also an advantageous method as they could easily
send their applications to the company; there is a greater chance that the
application or resume will be received by the company as compared to
sending it by post. If the company regularly checks the resume database,
applicants can receive the results of the screening rapidly. Most
importantly, this process is less tedious and more economical for the
applicants as they do not have to personally submit their resumes to the
company’s HR department.
Using online services for the recruitment
procedure also has certain drawbacks. For example, down systems can delay
the hiring process and could even affect the files stored. Internet
security problems may also be considered a risk. The use of online
recruitment procedure may also be disadvantageous for the applicants;
since submitting applications is easier with this recruitment medium, the
chance of getting the job is decreased significantly. As more and more
applicants find online job application easier and very accessible,
competition becomes stricter. The company on the other hand is flooded
with many applications, slowing down the screening process.
Cisco Systems uses the same online feature
as with Dell. Rather than just posting job advertisements on the
newspaper, the company offers its own online application site. Similar to
Dell, the use of the online feature for the recruitment process is
advantageous as the company can post multiple job openings and useful job
information without any cost. Aside from the company website, Cisco can
also post job opportunities in cyberspace. Not only does this methods
allows the company to offer jobs for applicants from all over the world,
but it can also obtain other valuable recruitment information such as the
number of visitors who access the site (Nakache, 1997).
The company also employs an unusual
recruitment process where a recruiting team is used by Cisco to track down
people with the most potential. The recruiting team is trained and skilled
in identifying individuals that will greatly contribute to the company.
Knowing the fact that most skilled employees are happily hired by others
and are not browsing the advertisements, the recruiting team then used
various methods to lure them. One of which is the friends program; here,
over a thousand employees of the company join the program in order to
entice others to join the Cisco team. This is done by matching the
employees’ skills and backgrounds to the prospects; the employees on the
other hand try to convince the targets by telling them about their work at
Cisco and how the company has helped them to develop. Naturally, a
referral fee and even raffled free trip is given to employees who had
successfully referred target individuals (Nakache, 1997).
As this is not a usual recruitment
procedure applied by organizations, the efficacy of the method cannot be
determined. While this method may help the company recruit the best
people, it is quite costly. Aside from paying the recruiting team to do
the recruitment job, paying thousands of employees to befriend others with
potential add up to hiring costs. Moreover, the friend program can be
considered as underhanded since the employees are not aware that they are
just being befriended so they could work for the company. Although Cisco
may provide better job and compensation offers, a less complicated and
more honest recruitment procedure could have made the acquisition of
talented professionals more rewarding.
Line managers go through a difficult
responsibility in the department as they have to process piles and piles
of resumes for the recruitment process. Cisco on the other hand tried to
resolve this matter by hiring in-house professionals or head hunters.
These individuals are trained and skilled to identify qualified candidates
for manager positions. The company reasoned that while paying the head
hunters is an additional expense, faster hiring process is far more
beneficial. Faster hiring process can also save the company valuable
resources as new employees can start and contribute immediately (Nakache,
1997).
In selecting the employees, Dell and Cisco
apply the interview process. For Dell, the company employs rotational
recruiters. If the company is searching for employees to fill in certain
IT jobs, Dell gathers recruiters from its IT department. The company
believes that these recruiters will input better perspectives to the
selection process since they know the specific demands of the jobs being
offered. Once the hiring starts, the recruiters will spend about three to
four months in the human resource department to assist the interviews;
once the applicants had been selected, they will return to their posts (Joinson,
1999).
Cisco also uses the same selection method.
John Chambers, CEO of Cisco, stated that in the company’s interviews, the
interviewer looks at two vital points: the performance and the people
skills. The skills, knowledge and attributes are the focus of the
performance aspect. Questions in this aspect may identify the person’s
ability to decide, lead and control. The people skills aspect on the other
hand focuses on questions that will measure the person’s values,
motivations and style. Here, the interviewer tries to match the
applicant’s personality or work attitude with the nature of the job he or
she is applying for. This is an important aspect since this will determine
the applicant’s ability to interact with colleagues. Chambers noted that
the interview procedure uses situational and behavioral-based questions
for selecting applicants. Situational questions are given to assess the
applicants’ abilities, judgments and knowledge. On the other hand,
behavioral-based question are more on the evaluation of the applicants’
values and attitude (Smith, 2006).
The interview is perhaps one of the most
common selection method used by organizations. This is an effective
selection technique as it helps identify the communication capabilities of
the applicant, which may be helpful for the job. An interview is also a
highly flexible selection tool as the interviewer can modify or add in
questions in order to gather more information about the applicant. How the
applicant expresses himself or herself is also a good indication on how
well the person deals with other employees. While interview for selection
purposes is effective, the method also has downsides. For instance, since
the outcome of the interview will only be based on the personal assessment
of the interviewer, the process tends to be too subjective (HR-Guide,
2001a).
Moreover, interviewers tend to develop
initial impression about the applicant, and the remaining time of the
interview is only spent on validating these impressions. In addition, due
to its subjective nature, stereotypes can greatly affect the chances of
the applicants to pass the interview (HR-Guide, 2001a). Although,
it was not mentioned whether interview biases are observed within the
selection process of the two cited organizations, it is possible for these
observations to occur as the companies depend solely on this selection
method. The main error then of both companies in their selection process
is that only a single method is used. Without the use of other selection
methods, the disadvantages of the interview process become more
pronounced. It is then important that the companies employ other selection
methods to offset the downsides of the interview method.
According to Golhar & Deshpande (1997),
most employees are selected by means of one on one interviews; however,
along with this technique, written examinations and panel interviews are
also used for the selection process. The use of multiple selection
techniques will help prevent applicant selection errors. The use of
application tests in the selection process is perhaps the most effective
method that could be used in combination of the interview method. This is
because the characteristics of this technique are in direct contrast to
the interview process.
One example of these tests is the work
sample tests; in this type of selection method, the applicants perform
tasks that are similar to the actual job they are applying for. A good
feature of this selection method is its reliability factor. Through this
method, assessors can easily determine whether the applicant is truly
skillful or not; in addition, it is difficult to fake ones’ work abilities
(HR-Guide, 2001b). This is in direct contrast to interview results
where the truthfulness and validity of the applicants’ responses is
difficult to verify. Cognitive ability tests or the paper and pencil
assessment, which is made up of general intelligence and aptitude tests
questions, may also be used along with the interview process.
In this technique, the applicants are
tested on their numerical and verbal abilities; similar to the interview
method, this test is very flexible since test questions can be modified
depending on the complexity of the job being offered. However, the
characteristic that makes this test different from the interview is that
it is highly reliable. Specifically, the results of the test are obtained
through definite scores. These scores represent a definite value, thus,
biases can be prevented. Aside from being objective, obtaining the results
is also easy as computer scanning equipment can be used. This method is
then useful as it is effective, fast and reliable (HR-Guide,
2001c).
Aside from these tests, the behavior or
psychological background of the applicant may also be assessed through
examinations. Through psychology or personality tests, the human resource
department can easily determine the behavior or attitude of the applicant
based on definite ratings. In general, the use of tests is helpful mainly
because of their high reliability. Aside form helping in making the
selection process more objective, the assessors will be able to decide
quickly with these test scores. Interpretation of the application results
will also be easier with the use of application tests. Due to the
diversity and flexibility of the tests, companies can easily choose which
technique is more appropriate for their employment needs. From this
comparison, it becomes clear that it is best for companies to employ a
variety of selection techniques so as to ensure that the employees they
will be hiring are truly appropriate for the job and the company’s
standards.
This selection practice is probably the
most appropriate for an instance when a human resource team member is
needed for a grocery chain’s HR department. In deciding the right
selection methods to use, it is important that the responsibilities of the
needed employee are clearly identified. As the needed team member will be
asked to conduct trainings for junior and trainee managers, it is
important that the applicant is willing and efficient in dealing with
people. Moreover, the applicant must have high levels of oral and written
proficiency; in particular, the applicant must be capable of doing good
seminar presentations. With these important skills, both personal and
intellectual attributes must be assessed.
For the personal aspect, a panel interview
may be appropriate. This will help determine whether the applicant has
sufficient confidence in discussing matters in front of an audience. Work
sample test may also be appropriate; this can be done by means of a
letting the applicant perform a training or teaching demo to an audience.
The applicant will be given the materials he or she needs; time will be
provided in order for him or her to prepare a 30 minute discussion about a
particular topic. Here, the creativity and skill of the applicant to
conduct actual training classes can easily be assessed. For this type of
test, a checklist of important features of the demo should be made fore
grading purposes.
Task 2
Widgets are Us faces a number of problems regarding its employees’
absences and turnover rate. The case clearly implies that these problems
are brought about by the company’s insufficient focus on appraising its
employees’ performance and giving them due rewards or incentives.
Performance appraisal or evaluation of the employees is an important
driver for motivating and retaining employees. By means of evaluating the
employees’ performance, the company is able to assess their employees
individually based on various aspects such as daily work output, quality
of work, work attitudes and overall performance. This helps the company
identify their employees’ strengths and weaknesses. The employees on the
other hand will be able to recognize where they are good at and what needs
to be improved. Included in this aspect is the provision of various forms
of recognition for hard working and deserving employees. Through
performance appraisal, the company motivates its employees to work more
efficiently.
The provision of rewards or
incentives to the employees is also an important factor for managing human
resource. Rewards can come in a number of forms. In general, rewards can
be given as monetary incentives like bonuses or as non-monetary incentives
like dinner certificates, public recognition and other similar rewards
that do not have any monetary value. This concept is actually based on two
theoretical frameworks: the expectancy and agency theory. The expectancy
theory states that the provision of rewards serve as a powerful driver to
motivate others. The agency theory on the other hand is based on the
perspective that rewards are a useful tool for aligning the goals of the
management with that of the stockholders. From these theoretical
perspectives, reward is viewed as an instrument of motivation, which in
turn optimizes the employees’ performance (Gomez-Mejia & Wiseman, 1997).
In the case of Widgets are Us,
the company is experiencing high rates of absences among its staff in
units One and Two especially during the weekends. In addition, the company
also observed that employees in these units are difficult to retain. In
order to resolve these problems, a performance appraisal procedure along
with a reward system must be developed for the employees of these units.
To prevent constant absences for regular workdays and weekends, the
company’s HR department may develop a performance evaluation checklist
which includes the employees’ attendance. Including the employees’
attendance to the performance appraisal may be used as one measure for the
employee’s level of dependability, perseverance and interest. The company
may also provide small incentives every month for employees who were able
to report to work regularly. This will encourage others to refrain from
frequent absences. The results of the performance appraisal should then be
used not only for the monthly incentives but also on the future career
progress of the employees.
Units One and Two work for 24
hours a day for seven days a week; though work shifts are employed,
employees in these units are not given at least one day off from work.
This can also be another cause for the frequent absences. For this reason,
the company should then reconstruct its shifting schedules in such a way
that each employee is given at least one rest day; considering that
majority of the staff in these units are women, they must be given enough
time for themselves to regain strength as well as spend time with their
families. For regular employees, the company may also consider providing
work leaves and other similar benefits.
Along with this system, the HR department
may also develop due sanctions for habitual absences. For instance,
employees must be advised to call the company or their direct superior so
as to inform the HR department that they will not be reporting to work. A
record of absences must be kept in file; should frequent absences are
observed in an employee, the department must issue a warning. A second
warning may be given on the second event; however, the company also has
the authority to terminate the employee due to perennial absences should
this problem happen for the third time.
In order to address the problem on high
turnover rates, the company must establish a clear career ladder for the
employees. With a clear career plan, employees will be more motivated to
perform well so as to progress in the company. Naturally, as the
employees’ progress in company position, corresponding compensation
increases must also be part of the plan. As employees are encouraged to
work towards their personal career goals, they are more likely to stay in
the company. The progress of the employees in units One and Two on the
other hand, will be based on the results of their performance in the
employee evaluation. The main objective of this scheme is not only to
reward the employees for their hard work but also to retain the company’s
best employees.
Benham (1993) stated that promotion is
also synonymous to career success where employees are given higher
responsibilities or place on higher authority levels. Promotion is
considered an important element of human resource management as it
encourages employees to perform with quality. This also represents a
significant aspect of the internal selection system. The organizational
members’ affective reactions towards their job and to the company are also
influenced significantly based on their promotional opportunities. Most
importantly, the turnover process is reduced through promotion (Johnston
et al., 1993). These literatures clearly stress that by means of
recognizing the efforts of the employees through the conduction of
performance evaluation and provision of due rewards, employees are more
likely to stay in the company and be interested in their jobs.
High turnover rate is also observed in the
company Third unit, especially among the engineers. The provision of
annual salaries that are below national standards is the clear cause of
this problem. Hence, in order to remedy this problem, it is important that
the company reconstruct the salary levels of the engineers. In order to
maintain their service further, the company should apply a similar
strategy applied for units One and Two. Engineers must also be informed of
a definite career ladder, which will serve as a guide for their career
development.
By means of having a clear career
direction, the staff in the Third unit will realize the purpose of their
efforts and become more determined to reach the top of their career
ladders. To support this career plan, the engineers must also be subjected
to regular performance evaluation; the results of this assessment will
serve as the main basis for their progress. As the engineers progress in
the company, they are naturally given more challenging and important
duties; this in turn can help make them feel valued and important,
motivating them to stay in the company.
The staff posts are given the right salary
with various cafeteria benefits. The employees of this unit however, fear
that with no cash benefits, line operative are likely to have higher
earnings than those performing staff jobs. For this problem, the company
may consider cash incentives instead of cafeteria benefits. With this
strategy, the performance of the staff posts will have to be evaluated on
a definite timeframe. The merit element for providing cash incentives will
then be based on the outcome of each employee’s performance appraisal.
Through these reward schemes and performance appraisal suggestions,
Widgets are Us will hopefully be able to make their employees more
disciplined, motivated, determined and productive.
Task 3
Employees leave their organizations for a
number of reasons; some seek other job opportunities due to salary reasons
while other leave because of their bosses or superiors. In some other
cases, the nature of the job itself does not seem to fit the interest of
the employees; thus, they leave the organization. While there may be
several ways why employees leave, the manner how the employees leave their
organizations tend to vary as well.
One of the determinants of the way
employees leave is the nature of the organization; for major companies
with defined employment agreements, the process of leaving the
organization for any reason takes on a formal approach. This process
basically includes the submission of a resignation letter as well as other
documents or materials that belongs to the company. In smaller
organizations, where employment rules are not clearly established or
strictly enforced, employees leave by absenting themselves without any
notice. Some employees use their vacation or sick leaves prior to leaving
the organization. In these sample ways of leaving the company, the main
determinant is on the behavior or attitude of the employee.
Separation from the company is perhaps one
of the most difficult and complex aspects of human resource management.
Thus, in order to manage this HR aspect, most companies develop clear
employment agreement that also discusses the leaving process of the
employees. Two computer companies are used as examples. One is Dell
Computer and the other is IBM. For Dell, the company requires all leaving
employees for any reason, to submit a resignation letter. In addition,
employees who are about to leave the company must go through an exit
interview with an assigned Dell representative. Once the interview is
done, the employee must also surrender all original copies of material,
files, documents and other properties that belong to the company to the
representative (FindLaw, 2004).
Aside from these processes, if the
employee accepts a new employment within a year after leaving Dell
Computer, the employee must provide the new employer a written notice
regarding his or her obligations on Dell’s copyrightable works,
intellectual property rights and other confidential information. The new
employers must also be provided with a copy of all the agreements that
took place between the employee and Dell. Finally, within a period of two
years since the employee’s separation from Dell, he or she must agree to
promptly inform the company in writing, the name and address of all the
employers he or she will work for (FindLaw, 2004).
IBM on the other hand employs a less
strict employment agreement regarding the employees’ leaving process. In
the company’s code of ethics, IBM stated that if the employee is to leave
the company due to retirement of for any other reason, it is required that
all properties like media and documents with IBM proprietary must be
surrendered. Employees leaving the company are also required not to
disclose any copyrighted and confidential information about IBM. The
agreement also indicated that all intellectual properties that the
employee has contributed to IBM during the period of his or her employment
continue even after leaving the company (Illinois Institute of Technology,
1995).
From these examples, it is clear that
Dell’s leaving process is far more extensive as compared to IBM. However,
there are similarities as well. For instance, both companies developed
these employment agreements to cover all reasons for leaving the company.
Moreover, the companies developed these agreements due to clear intent of
protecting all copyrighted materials, information and data.
In some cases, employees do no voluntarily
leave their organizations. Based on various factors, company operators
have the authority to select employees for redundancy; this is also
synonymous to downsizing or involuntary termination of services of the
employees. In a survey (Labor Market Trends, 2002), it has been
revealed that redundancies are often conducted due to organizational
restructuring. In selecting employees for redundancy, the survey results
also indicated that the employees’ role in the company serves as one of
the most common means or factors for redundancy. Other factors that are
used for selecting employees for redundancy include the workers’ job
performance, ability or flexibility as well as their absences and
disciplinary records.
The survey also showed that redundancy is
an emotionally challenging aspect of human resource management, both for
the company and to the employees. Specifically, redundancies typically
cause a significant decline in the morale of the remaining employees. The
trust employees have for the company is also greatly reduced due to
redundancy. In some cases, the decline of morale of the employees affects
their skills and performance. For this reason, organizations try to
alleviate the stress of redundancy by offering alternative employment
within the company. Companies at time also do recruitment freezes; use
early retirement; or offer opportunity of secondment to another company (Labor
Market Trends, 2002). These strategies are done by the companies in
order to reduce at least the impact redundancies can do to organizations.
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