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Final Report Submitted to: Sir Nasir Mehmood Submitted by: Zehra Hussain Arsalan Zaidi Faiza Mubeen MBA 4 Dated: 20 th May 2015 Hunt for the Perfect “Doodh Patti”

Hunt for the Perfect "Doodh Patti" - Recruitment & Selection

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The project attempts to match and analyze the R&S Processes (Doodh Patti - Perfect Tea Metaphor in the Topic) of 5 companies that include a couple of companies that have been in and around the Fortune 500 List of Companies in the past 5 years. The analysis of R&S Processes is followed up by a comparison to Profit per Employee of each of the selected companies. A unique display of analysis has been attempted in the research.

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Hunt for the Perfect Doodh Patti

Hunt for the Perfect Doodh Patti

AcknowledgementsWhen I started writing, I stopped for a while and thought what to write? How to write? I had no words to express our thoughts and feelings. But I had to write to offer the humblebees sense to ALL MIGHTY ALLAH The most beneficial, gracious and merciful who enabled me to perceive higher ideas of life and helped us throughout our lives especially in writing this report and all blessings to His favorite PROPHET MUHAMMAD (PBUH) who is the greatest personality of this universe. After God I owe my heartiest gratitude to my parents and my family whose prayers encouraged us to complete this task. We would like to thank the staff at Bahria University for their help and time. We are also extremely thankful to our teacher Sir Nasir Mehmood for his reward less help, precious suggestions, constant encouragement and guideline that enabled us to write this report.

Table of ContentsExecutive summary3What is Recruitment & Selection?4What are BEST R&S Practices?4Importance bestR&S practices in success of a company5Procter & Gamble Error! Bookmark not defined.PurposeError! Bookmark not defined.R & SError! Bookmark not defined.McKinsey & CompanyError! Bookmark not defined.Zappos Error! Bookmark not defined.VisionError! Bookmark not defined.R and SError! Bookmark not defined.

Executive summary In our final report, we have taken three of the fortune 500 companies of the world to see the recruitment and selection processes and the uniqueness in them which makes them successful and profitable. We plan to compare and contrast the major differences between the recruitment selection processes of these companies and to find the uniqueness in their recruitment and selection processes. The report will start with explaining the importance of recruitment and selection, followed by effective recruitment selection policies and then it will introduce the three companies we have selected and their recruitment processes. An analysis of the R&S Process of these Fortune 500 Companies will be done in order to identify how these companies act while hunting for top candidates.

What is Recruitment & Selection?Recruitmentis the process of identifying that the organization needs to employ someone up to the point at which application forms for the post have arrived at the organization.Selectionthen consists of the processes involved in choosing from applicants a suitable candidate to fill a post. The organization makes vacancies known to a larger number of people to organization through advertisement and publicity and make larger number of people to apply is called recruitment. In human resource management R&S play an important role in different activities these are acquisition, development, rewards of workers. Recruitment is a process that generates pool of capable people who apply for employment to an organization. Selection is use by which manager use specific instruments and select from the pool of candidate who best fit in the organization. What are BEST R&S Practices?As each and every organization wants that they have talented workforce for that organization use different methods and practices. In R&S methods organization get the candidate by the recommendation of old employees they suggest a person for the required job this method is fast and efficient as there is less consumption of time in that. Second method is by word of mouth this is also fast and eliminates the time consumption in search of candidates. But these limits the scope of search may be organization not get the qualified candidate. Another method by which organization get the pool of candidate is by advertising the job by that organization get the large pool of candidate and select the best one who meet the requirement of job. This method creates an opportunity to attract highly qualified candidates. These are the methods by which organization can get the pool of candidates. In R&s process first of all establish a vacancy for which organization need the people. And then get the approval of this vacancy from staffing people. Next step is filling the vacancy and in that the recruiter formulate a job description & job specification for required job this include the duties, responsibilities working condition and KSAOs. And after designing that organization give ad for the job on different places on newspapers, internet, websites, Tv etc this depend on the requirements of job and on the basis of that organization select these ways of advertising the job. After that when organization gets the applications then it starts taking interviews and by that it selects the pool of candidates. And shortlist the candidates that it found best for the required job. Those who are rejected recruiters provide them positive feedback that gives a positive image about the organization. And then it finds out the best candidate who matches the requirement of job.Importance of bestR&S practices in success of a companyAccording to Cable and Judge (1997), employee selection process should also consider improving congruent between employee values and corporate culture. The reason companies invest so heavily in their R&S processes is that they want to find the right person at the right time. R&S is important because it play an important role in the organization effectiveness and improving its performance. Because if organization acquire a person who have specific skills, knowledge and abililities that are required by the organization this will be beneficial for the effectiveness of organization. Another reason of R&S importance is that now organization regards their work force as there competitive advantage as having a talented and skilled workforce is a competitive advantage for any organization. Effective R&S is very important because as having a good workforce is a competitive advantage for any organization and getting the right person for the right job is very difficult for that larger organization follow the proper process and do selection test and on the basis of the results finally organization select the best candidate. In the area of organization fit (employee personal value match), organization culture plays an important role in employee retention, (Irhad, 2011). And when they recruit the right person who match the requirements of organization and fit in the culture of that will be in best interest of organization both for shorter period and for a longer period and this also help the organization to achieve its desired goals.The Link between Employer Practices and Employee Engagement

According to the SHRM Foundations Effective Practices Guidelines (Vance, 7 13), the employer practices have an impact upon the overall business results through employee engagement and performance (Figure 1.1). The employer practices have further been broken down into the following categories: Job and task design Recruitment & Selection Training Compensation Performance Management Career DevelopmentFurthermore, an article published in the Harvard Business Review states the importance of the Links in the Service-Profit Chain (Heskett, Jones, Loveman, Sasser & Schlesinger, 2008). The Article emphasizes upon the aspects of a business that earn profits for a company; and one of the initial parts of the process is employee selection & development. (Figure 1.2). In addition, the article sites an example of Southwest Airlines. The company regularly invites frequent fliers to participate in the auditioning and selection of cabin attendants. This investment shows the importance that companies place upon the R&S Process. Figure 1.2: Links in the Service-Profit Chain.

Research Methodology & Approach:Remaining within the scope of this research, the researchers have used the factor of Recruitment & Selection and linked it with the overall business results. The business results, in order to have quantified data, have been considered as Profits after Tax (PAT). The quantified business results would allow the researchers to find out the PAT per Employee of each of the companies chosen. This would assist the researchers to argue that better R&S practices result in higher PAT per Employee. The researchers intend to do a thorough analysis of the R&S Practices of 3 companies who have been in the Fortune 500, namely: Proctor & Gamble, McKinsey & Company and Zappos, Inc. The R&S Practices of these companies would then be compared to 3 companies from Pakistan namely: Pakistan Tobacco Company, Ufone and Zong. After comparing the R&S Processes of these companies, the researchers intend to argue, through a comparison of the PAT per Employee of these companies, that effective R&S Practices is one of the tools that companies use in order to drive business results. Following is the step-wise process of the research:1. Analysis of the R&S Process of each of the chosen companies2. Identification of unique aspects in the R&S Process (if any)3. Identification of focal points within the R&S Process of each company4. Calculation of Profit after Tax per employee (PAT) of each company5. Cross comparison and analysis of PAT, focal points and unique aspects of the R&S Processes

I. Companies R&S Strategies And Processes1. Ufone:Pak Telecom Mobile LimitedorUfoneis a PakistaniGSMcellularservice provider. It was the thirdmobile operatorto enter Pakistani market. It started its operations, under the brand name of Ufone, inIslamabadon January 29, 2001.PTML is the wholly owned subsidiary ofPakistan Telecommunication Company Limited. Following PTCL's privatization, Ufone became a part of theEtisalatin 2006.Ufone is among the largest GSM mobile service provider and fourth largest mobile service in terms of subscriber base of over 24 million.[4]It has a market share of 18% among mobile operators. 1.1. Recruitment strategyUfone believes in hiring internally , it gives preference to its internal employees, if no one is able to fit into that position only then external hiring is done. While doing external hiring, fresh graduates is considered as they bring in new ideas for the company.Ufone does not have a formal recruitment drive that it focuses upon but instead, it uses linkedin, Career Pages and Rozee.pk integration in order to advertise a position and receive applications. On top of that, Ufone solely focuses upon its Summer Internship Program and maintains its candidate database through this program. Employee referrals are also used in order to acquire good candidates that might be considered for a position. Furthermore, university Career Offices are kept updated regarding the vacant positions so as to generate a number of candidates from there as well. 1.1.1. Summer Internship Program:Ufone focuses upon the Summer Internship Program a lot in order to develop a talent pool for future reference. The company believes that by offering learning opportunities to the graduates-to-be and letting them have a look at the Ufone culture, the company can generate a positive outlook in the students mind which would help them achieve their talent goals for the future. Ufone has been trying to make the process for recruiting interns tougher in the recent past so as to ensure that only quality candidates have an opportunity for a summer internship. The quality focus allows Ufone to test the abilities of the interns and, if need be, hire the best ones out of those in case a position is vacant. 1.2. Selection Strategy:The selection process, after receiving CVs and applications through Careers Page, Linkedin, Rozee.pk or employee referrals, is quite a simple one and the steps are briefly described below. 1.2.1. Technical Tests:Tests are only applicable to those candidates that are applying for technical positions; for positions other than technical, only interviews are conducted after the initial screening of CVs. 1.2.2. Line Interviews:The first round of interviews is conducted by the line managers. The shortlisted candidates are provided by the HR Department after which line managers conduct interviews related to the vacant position. The line manager then shortlists some candidates and sends them back to the HR Department. 1.2.3. Panel Interviews:The panel for this round of interviews consists of an HR Person, the Line Manager and another independent evaluator. This independent evaluator helps out if there is an argument that the HR and Line manager cannot resolve regarding a candidate.The evaluation forms that are to be filled out by the panel are based upon the competency-based evaluation. The competencies of the candidate are rated against the competencies that are required in order to perform a particular job. The STAR technique for interviews is often deployed by the interviewers at Ufone. Situation: set the context for the story Task: what was required of you? Activity: what you actually did Result: how well the situation played out. Operation Portal: In order to make the process faster and more efficient, Ufone has deployed an online intranet portal that follows the path of a particular hiring request. This keeps a check upon which of the employees in the decision-making process is taking more time than usual in order to make a decision upon a particular hire. It allows the HR Department to make the decision-making process of hiring a candidate more efficient.

Overall Picture of the Ufone Process:Drawback: The biggest drawback in the R&S Process at Ufone that was identified and accepted by the HR Point of Contact as well was that there was no formal orientation session of the new hires. Although the employees were kind enough to introduce the team of the new hire, yet lack of presence of a formal process shows that Ufone, as a company, is least bothered about how the person would fit into the culture of the organization; various researches prove how detrimental that could be for the overall health of the organization. 2. ZONG:Zong allows and enables its users to avail the best possible Mobile Internet bundles that are not offered anywhere else in the country making the experience, truly a unique one. The basic idea is to allow people to communicate at their free will, making it a stress free environment with no worries about Tariffs, Capacity Issues or Congestion, be it Network Coverage or Quality, it is all sorted since Zong is supported by ground breaking communications.

VisionBecome an indispensable digital life partnerMissionTo lead the future innovatively through: - Customer Centricity- Boundary less Team- Organizational AgilityCore Values Integrity & Accountability Openness Perseverance Passion Efficient Execution2.1. Recruitment Strategy: Zong believes in hiring internally and it gives full preference to internal candidates as they are aware of zong culture. The external employees are only hired on a need basis. Zong has a graduate trainee program and campus drives in which it hire and trains new talent.

2.1.1. Campus DrivesZong hunts new talent through the campus drives they visit the campuses of universities then interview candidates and counsel them on their weaknesses and give them trainings and keep a list of Cvs of the talented People and enter them to their database, they create a pool of candidates and then hire them when they are needed.2.1.2. Career at ZongZong has an online portal where it keeps the records of the potential candidates and when a post is open hiring is done through the process. Everything at Zong is done through the computerized HRIS system and it is recorded and documented and SOPs are followed.2.2. Selection Strategy:Zong tries its best to spend time in selecting the right person for the job .Candidate is selected based on a combination, his test results and his interview results, if the candidate performs well in both he/ she is hired. 2.2.1. HRIS at ZongZong uses the HRIS system computer software based recruitments. Employee request form is filled by the employee who needs to hire someone he enters his request into the system. The job post is searched in software if its existing then they see if the post is available already and who was last employee working there and what job description Is there. If the job is new and the post is created on a need basis then a jd is made based on the job requirements , approval is taken from management then the post is announced on the website for external candidates and for internal email is sent to them. After the initial screening ,interview calls are made ajd the profiles cv of candidates are added to system and shortlisting details entered and then approval done then hiring is done.2.2.2. Screening of Candidates:Zong carries out the screening of the candidates through the software. The filter finds the right Cvs, people who had the same Keywords were entered in the filter of search. Through the tests carried out at the assessment centers the candidates are screened out. The rest are requested to come to interview. Final screening is done based on the interview results. A technical tests then followed by first interview & Panel interview All posts below assistant a Test is taken which is competency based.2.2.3. Selection Tests Zong starts the process with a test for the technical post. The engineering jobs have the engineering related test, mangament employees have the management related tests .Moreover The test depends on the job post a candidate applies for it has three main domains Business Technical IT 2.2.4. Interviews Structured interview is taken at Zong to make sure all the questions are covered and to get overview of the job contents. Unstructured questions were also asked the questions werent asked in a specific formation and the probing questions also asked when required. There are three interviews done at Zong: 1st Interview with the Line Manger ( telephonic mostly) 2nd interview with the HR Manager and panel 3rd interview with Panel and Directors( Top Management)Behavioral training is provided to the employees in the interview panel and they basically test two kinds of things in the candidates functional & behavioral skills and such questions are asked to make sure the employee with right attitude should be hired.Decision making Decision Making is fast and is done collaboratively with the Based on Mutual collaboration of the panel sitting in the interview. Moreover, the evaluation forms assessment marks are checked for taking the right decision.Modes of recruitment Internally email to internal employees are sent when a job post is vacant. Response application PortalsExternal through the: Website (career Portal) Facebook Rozee.pkOverall Picture of the ZONG Process:

3. P&GProcter & Gamble Co., also known asP&G, is an Americanmultinationalconsumer goodscompany headquartered indowntown Cincinnati, Ohio, United States, founded byWilliam ProcterandJames Gamble, both from the United Kingdom. Its products include pet foods,cleaning agents, andpersonal careproducts. P&G has over a 100,000 employees. Purpose To provide branded products and services of superior quality and value that improve the lives of the worlds consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.3.1. Recruitment Strategy: Instead of traditional forms of Recruitment Strategies, like most of the other big companies in the world, the primary medium of Talent Attraction that P&G relies upon is its strong Employer Brand. The first question that P&G Recruiters think of is: what do we have to offer? And they have a very simple and specific answer to that question that has been addressed on the front page of their Career Page (see figure on next page).Employer Branding: Talented, passionate caring and innovative. These are the people of P&G. Our PeopleWe believe in igniting your potential. Supporting your success. And celebrating the individual. what we have to offer. We hire the PERSON, not the position. Respect for persons attributes. 3.1.1. Campus DrivesP&G shortlists some universities based upon past experience of candidate quality and visits the campuses in order to maintain its strong Employer Brand. But, how does the company know what to communicate? Surveys! P&G remains in touch with the Universities that conduct various surveys which provides them with valuable insight regarding how the students like to be communicated at present. P&Gs various departments present what they do and how they work to the students so as to make sure that students of all fields are covered during the drive.Decisions like who will present and what language would be used are all pre-decided by the HR Department so that the Employer Brand is conveyed to the potential candidates very precisely. Alumni of a particular university are preferred to make sure that the students can create an instant link with the presenter. There are two major hooks that P&G takes to these campus drives:a. Entry level positionsb. Internships (P&G does prefer to call upon candidates who have already interned at P&G before; the research would not go into detail of that particular process as it would direct it slightly off scope)3.1.2. Route to Career PageOne of the goals of the Campus Drives is to route the students towards the Career Page. There, too, the Employer Branding has been fully taken care of. But additionally, the following tasks take place:a. CV Creationb. Online Tests (Descriptive & Cognitive) c. Reasoning Test (in-Person) The reasoning test can be used as a part of the final interview but in this case, it is sent to the respective campus. This is called the paper-and-pencil Reasoning Test.

3.2. Selection Strategy:There is a unique way in which P&G selects and hires its candidates and it is a very thorough process through which the decision-making is done that will be discussed later. 3.2.1. Screening of Candidates:While screening various applications of the candidates, P&G uses two tool namely a) CVs and b) Tests. In the Tests portion, there is an absolute marking system for each university. This means that P&G can put a cutoff point depending upon their requirement at the moment for each university. For instance, the cutoff points below which candidates will not be shortlisted for LUMS maybe 70 marks out of 100; but the same for IBA maybe 80 out of 100. This is highly dependent upon the fact that what sort of candidates is P&G looking for from that particular institute. If there is a high requirement of very high potential students and P&G does not want to create a very large talent pool to choose from, then the benchmark would be kept high so that only the very best candidates would be shortlisted. Why the above strategy of absolute marking for tests works is that it provides P&G complete control over their talent pool creation. Furthermore, P&G screens 90 95% of the candidates through these tests which means they rely upon this a lot. One of the top qualities that P&G wants in its candidates is the Leadership Skills. The tests, especially the descriptive tests, are designed in such a way so as to measure the Leadership Skills of a candidate through various situational questions. 3.2.2. First Round of Interviews:Generally, the first round of interviews is held within the Campus. After the first round of Employer Branding is complete, a team from P&G travels again to the campuses to hold the first round of interviews. These interviews mostly last for 15 minutes and 2 major types of questions are asked:a) Targeted (e.g. Leadership, problem solving etc.)b) Behavioral (mostly situational; examples from real life situations)Generally, these first round of interviews consist of a panel of interviewers; either 2 or 3. These interviewers rate each of the KSAOs required from a rating scale of 1 to 5; this scale remains consistent throughout the process. 3.2.3. Comprehensive Interview Rounds:The comprehensive interview round generally lasts for 45 minutes to 1 hour; although this time scale and increase or decrease as well. The whole point is, that the interviewer has to be completed convinced about a candidate before moving on. The interviewers look for 9 qualities in a particular candidate that are in alignment with their technical and cultural needs. Leadership is one of the major qualities. These qualities are rated on a scale from 1 to 5. Usually, the list of questions is structured but the interviewer can probe further into a particular topic if he or she is not fully convinced. This particular part of the interview process, where the interviewer has to be fully convinced can sometimes drag the interview on to as long as 2 hours. The same process that has been mentioned above is conducted by 2 other people and what happens after that is particularly unique in terms of developing a credibility of a candidate; P&G makes sure that the interviewers are absolutely sure regarding a candidate before they hire him/her. Debriefing:After the extensive process of interviewing comes to an end, the process does not end there. The 3 people who interviewed the same person sit in a room with one of the HR Personnel and they discuss various pros and cons of a particular candidate. Candidate A, for example is up for debate first. The 3 people/teams who conducted the interviews of Candidate A will scrutinize every single point of the candidate in front of the HR Person. There is no democracy here. If 2 interviewers/teams are convinced about Candidate A, but 1 interviewer/team is not fully convinced, the job of the 2 interviewers is to convince the 1 interviewer regarding candidate A. This can be a time consuming activity but according to the HR at P&G, this ensures the quality of the hire and helps in hiring the right person the first time. After the debriefing session is over, which could go well over a couple of hours of debate between the interviewers, the HR person is asked to hire the particular individual and an offer letter is published to the one hired, and rejection letters (through e-mail) to people who could not make it through. Overall Picture of the P&G Process:4. McKinsey & Company:McKinsey & Company is a global management consulting firm that serves leading businesses, governments, non-governmental organizations, and not-for-profits. The company helps its clients make lasting improvements to their performance and realize their most important goals. McKinsey & Co. serves clients at every level of their organization, in whatever capacity it can be most useful, whether as a trusted advisor to top management or as a hands-on coach for front line employees. For every engagement, it assembles a team with the most appropriate experience and expertise. The company has around 10,000 employees operating globally in various locations. 4.1. Recruitment Strategy:The recruitment strategy at McKinsey and Company is a bit different. They are a brand name around the world and they do not reemphasize that. Instead, they let the candidates reach out to the company. This gives them the edge that only those candidates would be in the talent pool who really want to work in a company like McKinsey & Co. Hence, there are no employer brand promotion campaigns; 90% of the hiring is done from the campuses, but then again, the way they recruit and select people is quite different. So, they market their jobs on the Career Page and Social Media and thats pretty much about it. This is a part of their strategy, so that they only create a talent pool out of those candidates who are really inspired to work at McKinsey & Co. 4.2. Selection Strategy:The first stage of screening starts once the CVs are received for a particular position. Once the CVs are shortlisted, what happens next is what makes the Selection process at McKinsey & Co. unique. The first stage of screening a CV is: whether the candidate who has applied belongs to the target university or not. If not, the CV is not considered at all. Phases of screening:a) Whether you are from the Target Universityb) Did you make an effort to meet them (e.g. online applications etc.)c) The CV it has to match attribute and behaviors they are looking for and should be very precise. They believe in the fact that the CV tells your whole story. 4.2.1. Campus Presence Initial Touch Point:After the first round of screening, McKinsey & Co. send some of their employees to the target universities. They remain there for at least 3 months, on and off; the reasons for which are discussed below. The concept of very limited target universities can be attributed to the fact that they only have around 10,000 employees world-wide and do not have the same employee demands, in terms of quantity, as compared to P&G that has an employee base of over a 100,000 employees. McKinsey & Co. has some allocated resources who have their jobs to remain within the campuses. Once the CVs have been shortlisted, following is what happens: Some of the employees remain within the Target University Campuses They contact the shortlisted CV pool people and have very casual initial meetings with them. These meetings could be at least 4 or 5 in number Generally these casual meetings are conducted over a cup of coffee, lunch etc. Through these meeting cum interviews, the McKinsey people are allowed to identify the behaviors of the candidates they are considering. This is the first touch point with the candidates and in a very mild manner, they keep identifying various behavioral traits of the candidates. These casual meetings / interviews are the reason that the company has a very limited target universities where they hire from. This process allows the employees stationed in the universities to further shortlist the candidates that are supposed to be called for the next stage in the process i.e. Problem-Solving Tests. 4.2.2. Problem-Solving Tests:The shortlisted candidates from the Campuses are called on for a problem-solving test. This is typically a very hard test to pass and very few people make it to the interviews round. 4.2.3. Interviews - Level 1:The shortlisted candidates from the tests are then called up for an interview with McKinsey & Co. The interview at this level (Level 1) includes of the following components:a) Business Case real life business case solutionb) Behavioral interviewsThe Business Case allows the recruiters to identify the skill of a particular person in order to solve problems relating to a real life organization; they believe in this particular formula because this is exactly what the employees at McKinsey & Co. do. They provide business solutions. The time frame for the Business Case portion ranges from 30 to 60 minutes and only the individual solves this case; there are no teams. The Behavioral Interviews, just like at P&G, involve questions that look to align the behavioral traits of the individual with the culture at McKinsey & Co. Just like P&G, they are very careful while selecting a person and they consider not only the technical skills of the person, but also the cultural alignment. This allows these big companies to keep their employee turnover as low as possible.4.2.4. Interviews - Level 2:More of the same that happened in the last step happens here. The candidates are provided with Business Cases and Behavioral Interviews are held; but especially the business cases at this stage are more difficult. The Level 2 interviews are conducted by another team of Recruiters who provide their report regarding the individual in the end.

Debriefing:After the overall process has been completed, the same team that started off the recruitment process in the campuses, sits together with the team that conducted the Level 2 interviews and business cases. They debrief each other regarding the pros and cons of the individual in the presence of an HR person, argue the case for each candidate and then make the decision. The amount of time that it takes for McKinsey & Co. to hire a particular person may take more than 2 or 3 months. The reason that was provided for that huge amount of time was that McKinsey and Co. is very selective about whom they hire and that is why they have such a rigorous R&S process. They may select only 1 person from the shortlisted 500 or 600. So, they keep the process as tough as possible.Overall Picture of the Process:

5. Zappos:Zappos.com was established in 1999 to offer the best possible online shopping experience for footwear. Over the years, the selection has grown to include not only footwear but clothing, accessories, housewares, and more. Named a J.D. Power 2011 Customer Service Champion, rated ELITE by STELLA Service, and recognized as one of FORTUNEs 100 Best Companies to Work For 6 years in a row since 2009, Zappos.com continues to strive for excellence in customer service.

5.1. Recruitment Strategy:At Zappos, there are two main strategies that are at play for the Recruitment Strategy: a) they mostly prefer to hire from within internal rotations and promotions; and b) They use social media extensively to promote their work culture. Culture is the cue they send out to people through various blogs and social media accounts. The Recruiters are actively visible on the social media site like Twitter and Facebook trying to engage as many candidates as possible to know more about Zappos. According to them, whenever theyve tried to source externally, especially for C-Level positions, they have not been as successful as the internal sourcing. Basically, Zappos wants to make connections where connections werent previously made. The core recruitment strategy at Zappos is through Internal Sourcing. At the same time, Zappos, through the social media, keeps on creating their own database as well; their target is to have their own huge candidate talent pool where to choose from in the future. The reason that Zappos wants to have their own Talent Pool database is that some of the positions are harder to fill internally for which they have to actively go on the lookout for the right people. They post the jobs on their Careers Page and Social media for that purpose. High engagement plus real time interactions with Zappos employees automatically attracts talent. New concepts and their application in the culture, e.g. Halocracy, are well promoted and work as an attraction to the talent. Halocracy is an organizational methodology where each and every individual has say in what is to be done and what roles are to be assigned. It works by distributing power towards various people rather than the old Top-down approach. Research shows that every time the size of a city doubles, innovation or productivity per resident increases by 15 percent. But when companies get bigger, innovation or productivity per employee generally goes down. So we're trying to figure out how to structure Zappos more like a city, and less like a bureaucratic corporation. In a city, people and businesses are self-organizing. We're trying to do the same thing by switching from a normal hierarchical structure to a system called Holacracy, which enables employees to act more like entrepreneurs and self-direct their work instead of reporting to a manager who tells them what to do. Tony Hsieh CEO Zappos (See Appendix for Figure)5.2. Selection StrategyZappos believes in a very engaging culture so they always tend to come up with new ideas in order to select potential candidates. One of the ways they have devised is the Zappos Insider. This is simply a program for the people who might want to working for Zappos one day. It engages the candidates to create online profiles and interact with the employees, Zappos Ambassadors, who are constantly active on the social media and blogs. Following are some of the guidelines provided, that promote an engaging procedure of shortlisting for various jobs. (taken directly from the Zappos Website):There are a number of ways to stay in touch, help us get to know you and get to know us better too!1. If you havent already done so, be sure to create avideo cover letter(or some other creative way to show us your true colors, your real personality and who you are as an individual). Whencompany cultureis as much of a priority as it is for Zappos, these pieces of the equation are SO important and you will definitely stand out if you give us a chance to know you beyond the written words on your resume! (Zappos core value #4: Be Adventurous, Creative and Open-Minded.)2. Every single one of our recruiters is active on Twitter, talking to fans and Insiders every single day. If youre on Twitter, be sure tofollow our recruitersand join in the conversation! Hundreds of other Zappos employees are on there too! If youre not on Twitter, maybe nows the perfect time togive it a shot!After all, Embrace and Drive Change is another Zappos core value!3. Speaking of Twitter, be sure to join our biweekly#InsideZappos Tweetchatson Thursdays at 1pm ET / 10am PT. Its a great way to meet tons ofZappos employeesaround the company (not just recruiters) and gain insights and personal impressions about life at Zappos. You can ask questions, chime in, share your thoughts, etc. Its super fun and the 30 minutes just speed by!4. If Twitters just not your thing, youll be happy to hear that were also onFacebook,InstagramandPinterestand we love hearing from our fans, current employees and future employees! Pop by to say hi, tell us what you think about one of our updates on company culture, life at Zappos, our people, our events, our customer service, the way we do business. Its a great way to stay in touch and also to stand out.5. Google Hangoutsare coming! We will soon be launching Google Hangouts (think video conference calls) where potential employees can hang out (no pun intended) with recruiters and other Zappos employees, ask questions, get to know us, let us get to know you, etc. Therere going to be TONS of fun and we cant wait to get started!6. As always, feel free to reach out toyour team ambassadoranytime if you have any questions. Thats why were here! (Before reaching out, maybe get to know your ambassador better byreading his/her blog posts!)

5.2.1. Webcam Interview: In order to promote their different and engaging culture, whenever the number of applicants for a position is high, Zappos came up with the idea of asking the potential candidates to answer a few simple questions and introduce themselves in a Webcam Recorder interview. This allows the recruiters to view the messages whenever they want and helps them see various aspects of a persons personality e.g. communication skills, without the fuss of having the person actually come over. It is more like a video CV of an applicant where Zappos asks the candidates to come up with creative ways to demonstrate or communicate what they want to. 5.2.2. Interviews by SMEs:After shortlisting the potential candidates through Webcam Interviews and having a go at their online profiles on the social media and Insider Program, the shortlisted candidates are then called up for an interview to the Zappos office for a second interview with the SMEs mostly the people working in the particular department where the job opening is. The questions are mostly pertaining to the subject area. 5.2.3. Interviews by Teams: The second round of interviews is held with the particular team in which the person might be working in the future. This is more of a socialization interview process where the team members try to identify and see if the person would be a good fit within the team or not. 5.2.4. Interviews by Recruiters:These interviews are mostly related to the behaviors of the candidate. The recruiter asks 15 to 20 questions trying to analyze the behavior of the candidate. Situational questions here are a norm and are definitely related to customer experience. As Zappos prides itself in the customer experience, so they want employees are customer-centric as well. At the same time, during all these interviews, all the interviewers try to guage the level of creativity and try to identify if the person is trying to be himself. That is done through questions like what is your favorite swear word. If a person has to think a lot, then he or she is not being himself and trying to hide his/her true self. Zappos is very careful about this fact as they really value people who act as themselves and accept others as they are as well. 5.2.5. Decision: In the end, the recruiter gathers all the information and makes the final decision upon a hire. In case there is a tie between two or three candidates and they cannot decide, then they provide the candidates with e.g. a marketing plan for a marketing position; they would make the final decision based upon the quality of the marketing plan then.5.3. Socialization / Orientation:Zappos has an extensive orientation program of 4 weeks for the new hires. 2 weeks out of this time period are spent trying to gel the person within the culture where they involved various sessions with the team e.g. lunches etc. Zappos does not want only observers of culture but they want people to make the culture even stronger, so they introduce the new hire to all that is happening currently at Zappos. The other half of the Orientation is regarding technical aspects of Customer Service for each and every employee. Zappos believes that Customer Service is everyones core job; whether youre in HR, Marketing or IT. Drawbacks/Shortcomings/Challenges:The major shortcomings identified by Zappos were as follows:a) At the launch of the Zappos Insider Program, the company had decided not to post jobs at all and just search through candidates through the Insider Program. This turned out to be a failure as they, then, could not particularly match which CV to match to which particular opening. People could actually not apply anywhere, so they had to restart posting the jobs on the Careers Page. b) The Turnover Rate at Zappos currently stands at around 19% which they intend to bring down to around 16% because of the fact that they have had considerable success at sourcing from within, so they tend to work hard upon their retention plans; and it all starts from hiring the person who fits into the culture well. c) Although Zappos is doing well through Social Media in order to hire the right people, they are also planning to focus some energy by branding them in the Campus Drives as well so as to leave no stone unturned to hire the right talent.

Overall Picture of the R&S Process at Zappos:

1. 2. 3. II. Analysis of R&S Processes A Comparison1. P&G: As discussed in the preceding text, the researchers were able to find out that P&G puts in a lot of the energy and focus, more than during other processes, at the latter stage of the R&S Process. This has been highlighted in the image below where it is clear to see that when the process enters into the ending stages of the R&S process, the time consumed and effort invested (verticality) increases as well. (Verticality and color showing more time and effort consumed respectively).

The researchers believe that this can be related to the fact that P&G is a company with more than 100,000 employees world-wide and require to have a bigger talent pool as compared to other companies under consideration. This is why P&G allows as many applications to come in as possible but still, a filter is applied which is demonstrated in the fact that only select target universities are chosen for their employer branding campaigns. But unlike McKinsey & Co. target university is not the criteria for shortlisting candidates. The more focus and energy is vested in the Comprehensive interview rounds upon the shortlisted candidates. This is where the recruiters at P&G dissect every single detail of the individual. As per all other most of the other big companies, P&G also gauges the candidates based upon technical skills and the cultural fit. The unique aspect of the P&Gs Selection process is their debriefing process which has been discussed in a bit more detail in the preceding section. 2. McKinsey & Co.:McKinsey & Co. puts in a lot of effort and energy during the initial stages of their selection process. They do not indulge a lot in the recruitment practices but are rather very selective even about the people who they want to speak with in the first place. The company does invest a lot of time and energy once the CV has been shortlisted though. This is done through the unique procedure of having some of the recruiters on campus and have initial touch point meetings through casual interviews at lunch or coffee; they prefer to shortlist as much as possible before they even take a person through to a test. The reasons for this particular behavior have been highlighted in the preceding section. Once a lot of time and energy has been spent at the campuses, the next phase that starts to receive high level of attention is the last two parts of the processes: Interviews level 1 and 2, and the debriefing process (just like at P&G). Hence, McKinsey & Co. distributes its energies and time spent across the R&S Process. This helps them to narrow down their talent pool as much as possible before anyone appears for tests and interviews.

3. Zappos, Inc.:Zappos is has a high propensity to engage their potential talent through the social media. They are exploring avenues that have remained untapped by a lot of other organizations. For instance, the customer centric approach in each and every area linked with Zappos allows its people to talk to potential candidates all around the world. Weekly webinars where students from around the world can jump in and ask questions regarding the Zappos Culture and processes is one step towards that smart linkage creation with potential talent. Hence, as shown in the figure below, a lot of time and energy is invested during this engagement phase of the process on the social media. After receiving applications through the Insider Program and receiving Webcam initial interviews, the screening process starts and several important interviews are conducted. More than usual of the energy and time is spend on the interview by recruiters the reason being that although technical ability of a person is important, but Zappos focuses a lot upon the cultural-fit of the person with the organization. This is why the recruiters, who analyze this particular aspect of the person, need to focus a lot of their energies and make the final decision. 4. Ufone:Ufone focuses a lot of its energy and time into the competency-based selection process. In this process, the company matches the candidates against the functional competencies of the respective function for which the candidate is being hired (see Figure below)But before that, Ufone is constantly trying in order to improve upon its Summer Internship Program. A lot of energy is vested into this currently in order to make sure that the quality of students is kept high and a good amount of talent pool is generated from this program. In recent years, in order to achieve the goal of quality talent pool, the Summer Internship Program has seen the interns being hired drop from more than a 100 to only 30 interns in 2014. 5. Zong: Zong, especially in the past 2 years, has focused a lot upon the Campus Drives since the company was in the process of introducing their GTO program for fresh graduates. Since 90 GTOs have been hired from all over Pakistan, Zong does plan to reduce this energy focus towards the Campus drives at least for the coming year. Furthermore, the overall strategy is to give a lot of time and energy to the ending of the R&S Process i.e. is the 2nd and final interviews. The Final interviews are held with the Department Head and the HR has to make sure that only quality candidates, 2 or 3 in quantity, are shortlisted for these interviews. After this stage, a considerate amount of time is spent upon the Employee Orientation. A person from each department gives an orientation of 50 minutes in order to brief the people regarding operations of that department and how it adds value to the overall business result.

III. Profit after Tax (PAT) per Employee A Cross-Comparison with R&S Strategies:PAT per employee of each of the aforementioned organizations was found by using the following formula:PAT per Employee = PAT Total No. of EmployeesAs has been proven through research referenced before, employees directly contribute towards the overall business results and profits and R&S becomes an indirect factor in the process. Based upon this notion, the formula would provide the researchers an idea regarding how successful the R&S strategies of each of the respective companies discussed above are. Although the researchers feel absolutely obliged to mention at this point that R&S is only one of the factors that contribute towards the overall business results and the researchers believed that through calculating the PAT per Employee, they would sufficient insight into the effectiveness of R&S processes of the companies under consideration. The researchers have tried to make the currency of PAT per Employee consistent and do realize that the economical differences of Pakistan and other countries can somehow skew the results. At this point, though, it is necessary to come to a consistent and common factor of analysis i.e. common currency.

PAT per Employee Comparison

S.No.CompanyNo. of EmployeesProfits after Tax (millions)PAT per Employee (millions)PAT per EmployeeConversion to $

1Zappos1441$54.40$0.037752$37,751.56$37,751.56

2P&G118000$11,785.00$0.099873$99,872.88$99,872.88

3McKinsey & Co.170000$0.00

4Ufone1500PKR 3,000.00PKR 2.00PKR 2,000,000.00$20,000.00

5Zong4000

6PTC1269PKR 4,850.00PKR 3.82PKR 3,821,907.01$38,219.07

PAT and R&S Focus Comparison

S.No.CompanyPAT per EmployeeR&S Process Focus

1P&G$99,872.88Selection Focus

2PTC$38,219.07NA

3Zappos$37,751.56Recruitment Focus

4Ufone$20,000.00Selection Focus

5McKinsey & Co.-Selection Focus

6Zong-Recruitment & Selection Focus

Note: The R&S focus in the above table has been gauged based upon the following scale:

Remaining within the scope of this research, the researchers came up with the finding that most of the top companies around focus more upon the selection process of their R&S as compared to the recruitment part of it. As per the preceding data analysis of the companies under consideration, it was found out that the companies that have more PAT have a greater focus upon their selection process which shows that the companies who take a considerate amount of time and energy to select a particular candidate have a positive impact upon the overall business results. The researchers find it important to mention here that these same companies spend a considerable amount of time and energy in the recruitment process as well but it is less as compared to the selection process. In order to analyze, though, following points are extremely necessary to keep in mind regarding the companies under focus (research limitations): the economic dynamics of a particular country where a company operates has a profound effect upon the overall analysis as different countries could have different level of industry profit levels (to cater to this, the researchers have tried to narrow down the research to Profits per employee) the conversion of currency had to be done in order to develop an analysis which could skew the results each company would hire based upon its culture and respective brand standing in the overall market. A company with a bigger employer brand in the market may not need to spend much effort in developing an employer brand (e.g. P&G) whereas another company with a weaker employer brand may have to spend more time and energy developing the employer brand and that is why, the focus would be more upon the recruitment side (e.g. Zong) the industry in which a company operates could have a profound impact upon the PAT as well. For instance, Zappos has a recruitment focus but has a good PAT; this could be down to the type of industry and is open for further research. Some of the very important information has been missing regarding the profits of certain companies (e.g. Zong and McKinsey & Co.). A more thorough analysis would consider more companies for the same research and focus upon depth of data as well.

Conclusion:The researchers believe that certain elements of the R&S process of a company could have an impact upon the overall Business Results and the decisions made at this beginning stage of the employees lifecycle could have a profound impact upon the overall profits that a particular employee makes for the company. An employee that has been hand picked out of thousands and ensured upon that he/she fits into the culture would provide a higher profit as compared to an employee who does not fit into the culture of an organization. The researchers believe the reason that top companies that are in the Fortune 500 are so successful is the fact that a) they ensure that the employees want to work for them and b) they ensure that the employees they choose fit into their culture. The cultural-fit aspect was one of the common aspects that the Top 500 companies focused a lot upon, and the people in those companies went to say so far that if a person had the technical abilities and skills but would not fit into the culture of the organization, he/she would not be hired. To conclude, the researchers believe that each and every organization, no matter where in the world, needs to ensure the cultural fit of a particular candidate while going through their R&S process and they need to focus upon candidates that they really believe would be a good fit for the organization.

References

Cable, D.M. and Judge, T.A. (1997). Interviewers perception of person organization fit and organizational selection decisions. Journal of Applied psychology. 82: 546-61Irshad (2011). Factors Affecting Employee Retention: Evidence from Literature Review. Abasyn Journal of Social Sciences. P. 84-102Robert J. Vance (2006). Employee Engagement and Commitment: A guide to understanding, measuring and increasing engagement in your organization. SHRM Foundations Effective Practice Guidelines. P. 7 13. Heskett, James L., Jones, Thomas O., Loveman, Gary W., Sasser, W. Earl Jr., & Schlesinger, Leonard A. (July-August, 2008). Putting the Service-Profit Chain to Work. Harvard Business Review. Retrieved from https://hbr.org/2008/07/putting-the-service-profit-chain-to-work

Appendix A

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