This report is about the principles and practices involved in the process of strategic recruitment and selection at Automax ltd. Automax Ltd is in business of manufacturing auto components for a wide range of products in India, it operates more than 7 units in India The biggest challenge in Automax ltd is to find, attract and retain the talent and big challenge for employees in this organization is to find good people to work with. Human resource is not only the most important resource for any organisation but is a non replicated resource.
The main aspiration of Automax Ltd is that it should be the most preferred company to work for, employees should feel belonged to the organisation and all professional goals needs to be fulfilled. The researcher will discuss the principles and practices used by them for strategic approach to strategic recruitment and selection. As we know that HR functional HR strategies deal with the core areas of HRM like recruitment and selection, performance management, pay issues, employee relations.
1.2 Strategic Recruitment: According to [ (Alan Nankervis, 2009) ]Recruitment and selection within an organisation is an integral part of that organization’s overall human resource management and planning process. It is closely related to other human resources management processes like human resource development, performance appraisal, job design, promotions and transfers, reward management.
Strategic recruitment usually refers to the identification of the real recruitment needs of the organization and fulfilling those needs. The organizational needs should be tied with the overall business needs. In strategic recruitment approach, business strategy should be linked to the recruitment strategy
1.3 Principles of Strategic recruitment : These principles are just the guidelines which helps in designing and implementing effectiverecruitment strategies. 1 .A well defined strategy: There should be a clearly defined and communicated strategy which defines the brand message, target candidates and primary sources.If the strategy is not defined ornot communicated properly it might result in wastage of resources. 2.Pipeline approach : A well defined recruitment strategy should help in building a steady and continuous pipeline of talented applicants. 3.Employment branding :
1. http://www.ere.net/2008/07/07/the-20-principles-of-strategic-recruitin 2. g/
Automax is committed to recruit individuals with appropriate skills, knowledge, expertise and experience and passion to excel in business not only on academic excellence but also on proactive approach they perform effectively. Human dignity, honesty and sincerity are the core values of the company and the recruitment and selection procedures provide mechanism to formulate for assessing and appointing the most effective and able individuals and also ensures that everyone is treated with equality and fairness. Recruitment and selection procedures are designed in such a way that they not only provide the best practise but also comply with legislation.(Sud,2007)
It is believed that “The quality of an organisation can never exceed the quality of the minds that make it up.”At Allied autos it is the responsibility of Human Resource Department to ensure that recruitment procedures should be clear and concise. For example at Allied autos ltd. Strategic HR plan is prepared by the top management which includes in detail the requirement of future human resource, number and type of people required. Preparation of training programme plans so that future needs can be met from inside the company. Preparation of long term recruitment and selection plans.
Plans for retaining the able and skilled manpower needs to be prepared. Increased flexibility plans should be prepared so that the company can make best use of human resource. The main aim of any recruitment and selection strategy should of sourcing the best candidate. This can be done by http://www.solgm.co.nz/NR/rdonlyres/D096BC3A-31D7-4044-9732-296D410B26F7/50553/PMFs3.pdf
1.4Resourcing Strategy at Allied Autos Ltd.
According to ()HRM is about matching human resources to the strategic and operational needs of the business and it ensures full utilization of the resources. It is not only concerned with the keeping and obtaining the right number and quality of people required but is also concerned with the selecting, promoting and efficiently employing those people who fit the culture and strategic requirement of the organization. The rationale behind resourcing strategy is that the strategic capability of an organization is dependant on the resource capability in the form of people. The main aim of resourcing strategy is to ensure that competitive advantage by a firm is achieved by employing more capable people than rivals.
1.5The strategic hrm approach to resourcing
HRM places more emphasis than traditional personnel management of finding people. According to Townley (1989) Organizations are concentrating more on the attitudinal and behavioural characteristics of employees. According to Armstrong,Baron(2002,pg160,161)HRM approach to resourcing is of matching resources with organizational needs does not mean maintaining the status quo rather it means radical changes in thinking about the skills and behaviour which is must for the sustainable growth and cultural change in future. The integration of business and resourcing strategy is based on the understanding of the direction in which organization is going and determination of The number of people required to meet business needs
The skills and behaviour required to support this alignment. The impact of restructuring the organization.
1.6Fair Approach to recruitment and selection :
There should be no discrimination, there should be incorporation of mutual respect into the recruitment and selection.Should be ethical and equal like power should be used in appropriate manner, use of skilful interview techniques, confidentiality should be maintained. 1.7Sub- sytems of recruitment and selection (Pilbeam & Corbridge,2006)
1. Attraction : Suitable candidates should be attracted.
2. Reduction : Anyone unsuitable must be eliminated
3. Selection : proper, assessment, choosing and appointing.
4. Transition: conversion of successful candidate into an effective employee. It should be noted that the involvement of line managers is of crucial importance, it is true that the best laid plans will fails if line managers are not convinced that it is important for the company.
1.8 At allied auto different phases of recruitment
1. Applications are generated by persuading the people to apply. 2. After the applications are received suitable candidates are encouraged to stay until the completion of selection process. 3. Offering of job to suitable candidate sometimes it happens that the same candidate is selected by the 2 different companies than HR department takes every possible step to encourage that candidate to join them.
1.9 Approaches to recruitment and selection:
Competency Approach: Torrington et al(2008,pg170). it is concerned with the behaviour that is relevant rather than the competent performance. These models are popular in graduate recruitment where decisions are made about future recruitments. This kind of approach is suitable in service organizations like banks. A Contingency approach: According to [ (french, 2010) ]the underlying principle that organizational policies and practices need to be shaped within a particular context. For example different culture emphasise different attributes when approaching the recruitment and selection of the employees. It is true to a great extent for example if the company is operating across many countries than it needs to recruit the people according to the culture of that place specially the low level staff like KFC is operating across many countries and is recruiting the operational staff from that culture as it helps them to understand its customers better and make profits but say if for UK branch it recruits outside the culture that its recruitment costs will increase.
Traditional Approach: It means getting the right people, it involves a sequence of steps like defining the ideal candidate. Defining the criteria in such a way that there is fit between the job and person like Job description and person specification. This approach was criticised on the grounds that it assumes that there is only one best way to perform a job, resulted in unfair discrimination, one way job. 1.10 Strategic recruitment and selection : It sees human resource as an investment for future, use of sophisticated methods of selection, involvement of stakeholders. On the other hand it is an improvement over the traditional method in a way that it aims at development of people, more reliable, switching from company needs to current market demands.
1.11 Staged approach is the best approach for allied autos as it is into manufacturing of auto components: Recruitment and selection advocates viewing the process as sequential with distinct and inter-linked stages. The model is referred to as the resourcing cycle and it begins with the identification of a vacancy and ends when the successful candidate is performing the job to an acceptable standard. This in turn is a two way process in which organisations evaluate the candidate and the candidate in turn observes the organisation as a prospective employer. This process helps to ensure that not only the best candidate is attracted to apply and accepts the post but also the unsuccessful candidate respects the decision and apply for future vacancies. The first and most important questions to be answered before recruitment are :- 1.Determining a vacancy ? If yes does it needs to be filled in by a newly recruited employee ? It is to be noted that there is not only one way of filling the gap but there are different way in which the gap can be filled .
Recruiting a new employee must be with the dealt in careful manner during recession. For example at allied auto when a new vacancy occurs HR department normally does not recruits new employee immediately, as first step the concerned department where the vacancy occurred try some of the options like reorganise the work, use of overtime, use of an agency. 2. Attracting Candidates: [ (Armstrong, 2009) ]The most important step in attracting candidates is to analyse the recruitment strength and weaknesses of the organization. For example previously when allied auto was choosing among the wide selection of candidates is becoming a thing of past. As we know employees are developing their marketability and knowledge-based skills, allied auto is competing to find the best candidate as its image seems to be less attractive to candidates.
Allied autos recognised that recruitment process of the company should be made as powerful an incentive to candidates to join as generous pay and condition. For example Former director of human resource system and personnel relations at CGU, David Hope believes that the interview process should be put together with a firm of business psychologists, it will help graduates to understand the brand, culture and company’s commitment to graduate recruitment.
Allied autos soon realised that if the recruitment and selection process is well designed it can definitely be an indicator of the future performance and will attract the good candidates, if the candidates can see that there is a positive link between the recruitment process and the job they will be positive about the company. 3.Recruitment Advert: The most widely used method to attract applicants is the recruitment advert. The most effective advert are those that are eye catching and provide sufficient details to attract interest, use of telephone numbers or contact details for informal enquiries will have an important effect on candidates perception of the job and will be encouraging. For example advert of allied autos.
CV or application form : it is a document prepared by the individual as a part of the application which includes the details as to education, employment history and other relevant information. In any advert details related to how to apply should be included like whether to send the CV or to fill in a standard application form.
Processing application: After the advert the next step is handling applications and processing them. It should be decide in advance internally in the organization as to how these applications needs to be handled. At allied autos standard acknowledgment is sent to all the applicants and then applications are compared and sorted with the key criteria in persons specification in 3 categories suitable, provisional and unsuitable. Standard letter is sent to the shortlisted candidates for interview and if any of them have not filled in the application form before.
5.Selection: One of the last stage in recruitment and selection is the selection itself. It includes the choice of methods by which a short-listed group is reduced by the employer following the recruitment stage and thus it leads to an employment decision. [ (french, 2010) ].In allied autos relative merits of the shortlisted candidates are assessed against the job description and person specification which explore their skills , experience and knowledge which establish the most suitable candidate for the job. After that the interviews arranged with the respective department and is ensured that they are structured, well prepared and focused.
Not more than 5 candidates are interviewed and all the interviews are held the same day. Some jobs involves practical tests and presentations, at allied autos practical tests are taken on the day of the interview and this is informed to the candidates in advance. References are taken for all shortlisted candidates prior to the interviews and are taken in writing and then these references are passed on to HR department for the successful candidates. The successful candidates are given the appointment letter and this is forwarded to the HR department as it is the HR department which will issue the formal offer letter.
1.12Talent Management and Development Techniques:
According to (Banfield and Kay,2008)
The successful attracting and recruiting of new talent means that the needs of both the organisation and individual tend to match. Ultimate aim of the organisation should be to develop and maintain this pool of talented people by making use of different elements like attraction and retention programmes, roles design, talent management relationship, performance management, career management. At allied autos it is believed that the key to success is sustained focus on technology, systems and human resource.
Training needs are identified periodically and all new recruits are trained in technical training centre on pressing machines and other technical fields. Competencies can be used to develop self assessment and encourages feedback for enhancing improvement and aligning employee goals with business objectives. The need for employees at all levels to be involved in ongoing development of new skills, exposure to new experiences and learning to learn is apparent.
Strategic Human Resource Management – Page 226 – Google Books Result books.google.co.uk/books?isbn=0415099897
Olive Lundy, Alan G. Cowling – 1996 – Business & Economics THE SELECTION PROCESS The ultimate effectiveness of strategically selecting …Selection principles Human resource selection is a process of measurement, …
http://books.google.co.uk/books?id=2Kg9AAAAIAAJ&pg=PA226&lpg=PA226&dq=principles+of++strategic+selection+in+hrm&source=bl&ots=zWSI2-Xzi7&sig=7L-Zd675CI2AYhMYaYIMFL65PVE&hl=en&sa=X&ei=UyngULa_MO3L0AXMyIG4Dg&ved=0CFcQ6AEwBQ#v=onepage&q=principles%20of%20%20strategic%20selection%20in%20hrm&f=false 2.1 Strategic Performance Mangement:
“Strategic performance management encompasses methodologies, frameworks and indicators that help organizations in the formulation of their strategy and enable employees to gain strategic insights which allow them to challenge strategic assumptions, refine strategic thinking and inform strategic decision making and learning.”-Bernard Marr Different tools used for strategic performance management are
1. Mangement by objectives
2. Balanced scorecard
3. Hoshni Kanri
4. Value based management
5. Result oriented management
6. Performance prism
Principles of strategic performance management
1.Be honest and open
2. make goals interesting, challenging and engaging
3.build on strengths more than correcting weaknesses
Performance management is a broader term, it includes
Performance management systems
Monitoring and evaluation
Performance management in context
2.2Models of Performance Management
1. Balanced Score card : Balanced scored card is a tool used for strategic performance management. This model was developed by Kaplan and Norton in 1960’s.This is used as a tool by the managers to keep track of and to monitor to the activities of the staff within their control. The main advantage of this method is that it is a mixture of both the financial and non financial measures compared to a target within a single concise report. It alerts the areas to the manager where performance deviates from expectations. To many organisations it is positioned as a holistic performance measure as it provides information relating to financial, internal processes, customer perceptions and internal growth and learning. Now increasingly it has been associated with strategy implementation.
2. The EFQM Business Excellence Model: This model was developed by European foundation for quality management for long term sustainability of the strategic objectives. According to EFQM(1999) it is defined as the outstanding practice in managing and achieving results. This model helps the organizations to maintain a balance between the stakeholders and incorporates financial and also an indicator of the future financial performance. It helps the business in identifying the threats and opportunities for improvement against strategic goals, this is used as a basis of self assessment.
The main drawback of this modelis it is not standard model and it does not tell how to fill the gaps although it provides a valuable feedback. 2.3Performance management systems : According to (Bevan and Thompson,1992) PMS should communicate the objectives of the organisation to all employees. Departmental and individual performance targets should be related to the organisation objective. Identification of training and development and reward outcomes. Evaluation of the effectiveness of the process as a whole.
2.4Objectives of performance management at Allied autos
1. Improvement of organizational and individual performance 2. Alignment of individual and organisational objectives
3. performance pay decisions
4. helps in personal development of employees.
Reducing poor performance and increasing organizational performance are the main priorities of performance and development function at allied autos. For considering the management of performance issues in the organization it is possible to identify two different reference frames which are associated with the use of term performance management. According to Taylor(2005) these are known as two perspectives on Performance management. Standard Oriented: It is measured at the individual level, focus on improving poor performance, concerned with slippage below expected expectations, Use of formal appraisal systems , incentive based payments and disciplinary procedures ,transactional leadership. Excellence Oriented: It is measured at the organizational level, focuses on enhancing strong performance, concerned with continuous improvement, Use of enhancing job satisfaction, coaching techniques, transformational leadership.
In allied autos both perspectives co-exist, it is very difficult to manage both of them together but it is fact that individual performance will lead to organizational performance as it is the individuals who make up the organization. HR department sets the rules and these were written in the policy for example(lateness, absence etc) and these are acceptable by all. Individual performances are measured by the department head or immediate supervisor and if there are deviations then standards are set for those particular workers to improve their performance. On the other hand if we look at excellence oriented approach although it sounds good but if we see the practical aspect of it, does not clearly indicate as to what is the satisfactory level of performance and its main focus is on continuous improvement, it mainly motivates, maximises level of commitment and job satisfaction among the staff.
For example at Allied autos this is always the problem, in the manufacturing plant, the performance of production people is always measured on the basis of quantity produced by them and it ignores the quality. If we look at it practically this kind of data is not correct as it will not provide the accurate results when evaluating the performance. 2.5 Behaviour-Oriented Approach: It has been argued that outcome approach does not provide the proper assessment of individual performance. So, it is argued that behaviour needs to be assessed as much as behaviour.
There was an argument that not only the achievements are important but the processes by which they are achieved are also important. It only focuses on what individuals do and remove other environmental factors and the other inputs. Employee behaviour is less readily measured then the criteria used in other approaches. The main methods used are direct observation, the report of others watching them for example peers. Approached used rating scale, critical incidents and reactive approaches.
2.6 Principles of measurement at allied autos.
Performance is measured according to the needs of customer, both internal and external, what is considered important by the customer is measured. Strategic plan is prepared which indicates what is to be measured and translating of customer needs to strategic priorities. All the departments are supplied with measured results of the key strategic areas for further improvement by motivating them.
2.7 Classification of measures
Performance Appraisal According to Jeanne Murphy, Growth strategists and president of strategic solutions. “ If you can’t measure a goal, then don’t set the goal,” performance should be measured on objective basis. According to Kane(1996),Taylor(2005),measures are classified as 1. Productivity measures: At allied autos sometimes for the casual workers who are actually working in the plant( manufacturing unit)producing spare parts their performance is measured according to the units produced by them, the more the numbers produced the better is the performance. The main drawback with this measure of performance is that it ignores the quality of the output as sometimes there may be some rejections at the customer end or when it goes for quality check.
2. Quality Measures : This involves assessing the individual on the basis of quality of service delivered by him. For example at allied autos in order to measure the performance of staff who is working in the head office or customer care department. The performance is measured on the basis of customer satisfaction, absenteeism, poor quality work and motivation. It can be internal customer like different departments or external customer to whom the final goods or services are supplied, this kind of performance measurement many a times fails to give accurate results specially when it is converted into quantifiable terms.
This assessment method is mostly used in service industry like hospitals, banks etc. 3. Objectives set and Met: This involves assessing the individuals or teams on the basis of objectives set by the top management or the immediate manager or supervisor. As the name indicates performance is measured on the basis of how far the objectives met the criteria defined, are they below satisfaction or objectives or above the satisfaction. To some extent this method is reliable but if say some have some personal bias with the sub ordinate than the boss or the supervisor will not give accurate results.
2.8 Criteria for performance measures-appraisals
At allied autos performance measures are set in accordance with the strategic goals: like for example different targets are set for each department and division. Main focus is on both quality and quantity of outputs that can be measured and accomplished. Performance measures at allied autos are based on evidences. Measures that can be verified are taken into consideration.
Performance measures at allied are set in such a manner that they help in providing sound feedback and action. Performance measures are comprehensive in respect that they cover almost every area. In order to be achievable measurable targets must be set by expressing the individual requirements. for example : For output : According to (Bratton and Gold,2003)Targets should be clearly defined and should be measurable. Proper defining of the objectives so that an individual should know what is expected, it is the responsibility of the organization to ensure that everyone must understand what is required of them. It is said that objectives should be SMART S-Specific; M-Measurable ; A-Agreed; R-Realistic ; T-Timely
Job Related: Job descriptions should be in writing indicating the broad roles and responsibilities. Competencies of the individual or team should be defined in advance.
If there are any descrepencies which are normally expected as a result of human nature, it should be the responsibility of the top management to take necessary steps to remove them and use certain strategies to improve performance. 2.8 Strategies used at allied autos for improving performance. 1. Negotiation: At allied autos if it is observed that the performance of any worker is not upto the standard then he is called in by the immediate line manager or supervisor for the discussion to know the reason of detoriation in the performance level sometimes there is some personal problem which results in falling down of performance.
2. Grievance procedure: At allied autos there is proper grievance procedure handling system, grievance booklet is kept in the plant for recording grievances on daily basis. At the end of the day this register is checked by the HR manager and corrective actions are taken. 3. Reward: To motivate the employees and to improve production different reward schemes are in function at allied autos like suggestion reward, attendance reward, long term service reward etc.
4. Improvement in the working environment: Allied auto is taking all the necessary steps to improve the working environment for the workers like previously there was no cooling system in the plant and due to extreme hot weather workers were not able to give their 100% and they started feeling tired quickly, now a new cooling system has been installed in plant with which not only workers are happy but the output has also increased, canteen was renovated, water filtering system was installed keeping in my mind the health and safety of staff. All this have resulted in improved efficiency and low turnover rates.
2.9 Pay Performance Issues
The most important factor to be considered in order to improve performance is the Pay issues. Pay should be linked to performance not to time as it is unrealistic and does not motivate the workers. Pay structures should be designed in such a way that they bring in flexibility and multi skilling. Pay should be market driven there should not be any biases.
It should be noted that if pay is performance based then it will definitely help in improving performance. Should be based on performance appraisals and these appraisals should be fair. Some companies now a day’s use 360 degree appraisal: which means feedback is obtained from everyone like peers, superiors, subordinates and then the performance is measured. There should be transparency in pay differentials, there should be equal pay for equal work. According to (CIPD,2012)Performance management is a holistic process as it bring together many of the elements that make up the successful practice of managing people including learning and development.
3.10 Conclusion : It is to be concluded that allied autos has started realising that their employees are their strength and every possible action has been taken and strategies developed not only to recruit the best talent but also to retain them by making use of different development techniques like performance management, career development, performance measure. It is of great importance that strategic principles and practices used in recruitment and selection will have an effect on performance management so recruitment and selection should be done in a sophisticated manner and must be aligned with the business strategy.
Armstrong,M.(2009),Armstrong’s Handbook of Human Resource Management.11th ed. London and Philadelphia: Kogan Page Ltd. Armtrong,M. and Baron,A.(2002),Strategic HRM. London: CIPD
Banfield, P.and Kay,R.(2008),Introduction to Human Resource Management.1st ed.New York: Oxford Printing Press Bratton,J. and Gold,J.(2003),Human Resource Management Theory and Practice.3rd ed. New York: Palgrave Macmillan Google,books.(2012),People Resourcing. Taylor,S. Available from http://books.google.co.uk/books?id=6f-Yk35qMqcC&pg=PA268&lpg=PA268&dq=perspectives+of+performance+management+by+taylor&source=bl&ots=Elonir4KyP&sig=5Ia4pJD8eyY8kEDyxI6692PjM-4&hl=en&sa=X&ei=0VicT5T0K4Ke0QXArf2DDw&ved=0CDQQ6AEwAA#v=onepage&q=perspectives%20of%20performance%20management%20by%20taylor&f=false[Electronically accessed 28th April 2012] Rees,G.and French,R.(2010),Leading,Managing and Developing