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Tanglewood Case Essay

Each branch of Tanglewood uses distinct methods for recruiting. With the employee turnover very high is the retail industry, Tanglewood is no exception. For that purpose, they need to constantly hire new employees. To fill these positions Tanglewood uses a variety of recruiting methods, though each region need not necessarily follow all. While the methods used for recruiting are Media, Referrals, Kiosks, State Job Services and Staffing Agencies, individual branches determine which staffing method suits best for them to use for hiring store associates. Tanglewood needs a uniform recruiting strategy and a recruiting guide that will not only help them hire a candidate with the Person/Organization match but also attract a culturally diverse workforce. This will lower the chances of employee turnover and also make them compliant with the EEO and other laws.

Having a standardized recruiting process across the chain will also create staffing operational efficiencies and help maintain the culture of the organization. In order to have a successful recruiting plan, the first thing that needs to be addressed is having a Job description for each position that is there in the organization. This can be done by Job Analysis which will determine what KSAOs are needed for a certain position. After job Analysis and Job description, a detail selection plan has to be made which will rank the KSAOs and how they can be assessed. For any recruiting plan to be successful, Tanglewood has to determine which method to use. Though each division uses a variation of methods to search for their job candidates, there has to be some consistency across the whole organization.

WESTERN WASHINGTON

It is the largest and most profitable region of all the Tanglewood stores, mainly because it is centered around Seattle which is a big urban city. In keeping with the company’s culture and values, this region strongly believes in employee participation and autonomy. This region’s primary method of recruiting is employee referral. In the Seattle area, job Services is also heavily used for recruiting. Lastly, to fill positions that have not been met with the initial methods, the Kiosk method is used. Western Washington heavily relies on employee referral recruiting method. Data shows that it gets the largest number of applicants that is 3362, of which 1564(47%) are qualified and 1048(31%) are hired. This method has one of the highest rate of retention of 712(68%) next only to Job service which is 75% of the hired workforce. The setup cost for employee referrals is the same as Media and Job service which is $250,000. However, it has the highest variable cost amongst all the methods of $2,356,240, thus putting the total cost to $2,606,240 which is even higher than the Kiosk method.

The cost per hire is $2,486.87 and the cost per 1 year survival is $3,660.45. This reveals that even though the employee referral method costs almost $1,100 more than Job service, in terms of qualification rate, hiring rate and employee retention it yields better. Job service data shows that it yields 4236 applicants, of which 1398(33%) are qualified and only 378(9%) are hired. This method has the highest rate of retention after 1 year of 284(75%). But if we look at the number it is only 284 employees versus 712 in referral. The setup cost for Job service is the same as Media and employee referrals, but it has the lowest variable cost amongst all the methods of $462,720, thus putting the total cost to $712,720 which is the lowest of all the methods. The cost per hire is $1,885.50 and the cost per 1 year survival is $2,509.58. This reveals that this is the cheapest method used for recruiting however the retention rate for this method is also the lowest.

The kiosk method in the recruiting data shows that it yields 3114 job applicants, of which 1278(41%) are qualified and only 652(21%) are hired. This method has a retention rate after 1 year of 358(55%). This method is the most expensive with the setup cost of $40,000 and the variable cost of $1,413,574, thus putting the total cost to $2,413,574 which is the highest of all the methods. The cost per hire is $3,701.80 and the cost per 1 year survival is $6,741.83. This reveals that this is the second most expensive method used for recruiting per hire. The Media method in the recruiting data shows that is it the most expensive method in terms of applicants attracted and hired. It yields only 1430 job applicants, of which 536(37%) are qualified and only 204(14%) are hired.

This method has a retention rate after 1 year of 92(45%). The setup cost is $10,000 and the variable cost of $469,280, thus putting the total cost to $719,280 which is slightly higher than Job service. However, the cost per hire is $3,525.88 and the cost per 1 year survival is the highest at $7,818.26. This reveals that this is the most expensive method used for recruiting per hire. Seeing the methods used and their results in attracting and retaining employees, western Washington should continue using Employee referral method as their primary method, along with job service and Kiosk.

EASTERN WASHINGTON

Eastern Washington is very similar to western Washington in its management styles. It is where the company originated. It has 25 stores like Western Washington but the area apart from Spokane is largely rural. Though this region has pioneered all the organizational policies, since it the birthplace of the organization, it has created some variations due to its geographical differences. It largely uses traditional media methods of Advertising for recruiting more than any other method. Data shows that Media yields the most applicants 4592, of which 1608(35%) are qualified and 676(15%) are hired. This method has a rate of retention after 1 year of 352(52%). The total cost is $1,799,200 and the cost per hire is $2,661.54 and the cost per 1 year survival is $5,111.36. Employee referral data shows that it gets 4046 applicants, of which 1720(43%) are qualified and 1016(25%) are hired. This method has the highest rate of retention after 1 year of 762(75%).

The total cost for employee referrals is the highest at $2,565,760. However, the cost per hire is $2,525.35 and the cost per 1 year survival is $3,367.14 which is the lowest amongst all the methods used. The kiosk methods in the recruiting data shows that it yields the lowest number of job applicants that is 2776, of which 1110(40%) are qualified and only 444(16%) are hired. This is mainly due to the fact that the area has a rural population who probably feel more comfortable applying for the job through an advertisement than physically going to the store and applying at the Kiosk. This method has a retention rate after 1 year of 284(64%) which is the second highest only after Media. The cost per hire is $4,466.07 and the cost per 1 year survival is $6,982.17. This reveals that this is the most expensive method used for recruiting per hire. This reveals that the region should make necessary changes to yield better results for recruiting more effectively. They should focus more on employee referral which has yielded the highest rate of retention, and the lowest cost per hire as well as cost per 1 year survival.

NORTHERN OREGON

Northern Oregon has a very different philosophy for running its operations which is more professional in nature. It has a hierarchical decision making structure which is opposite to the company’s culture. It largely uses traditional media methods of Media, Kiosk and Staffing Agencies for recruiting. The kiosk method yields the most applicants that is 3896, of which 1656(43%) are qualified and only 696(18%) are hired. This method has a retention rate after 1 year of 446(64%) which is the second highest only after Agency. The total cost is $2,246,696 which is the highest. The cost per hire is $3,228.01 and the cost per 1 year survival is $5,037.43. Data shows that Media yields 2686 applicants, of which 1102(41%) are qualified and 364(14%) are hired. This method has a rate of retention after 1 year of 164(45%).

The total cost is $1,022,720 and the cost per hire is $2,809.67 and the cost per 1 year survival is $6,236.10 which is the highest amongst all the methods used in Northern Oregon. The Staffing Agency method in the recruiting data shows that it yields the lowest number of job applicants that is 1290, of which 614(48%) are qualified and only 490(38%) are hired. This method has the highest retention rate after 1 year of 402(82%). The setup cost is the highest at $900,000, whereas the total cost is $1,451,400. The cost per hire is $2,962.04 and the cost per 1 year survival is $3,610.45 which is the lowest. This region should focus more on getting qualified applicants from staffing agencies as it yields the lowest cost per hire as well as cost per 1 year survival.

SOUTHERN OREGON

Southern Oregon is known for its innovativeness as a lot of recruiting methods were first tried in this region. It is the smallest division with only 16 stores, tough they are looking to expand into northern California. The primary methods used for recruiting in this region are Staffing agencies, referrals and Kiosk. Data shows that employee referral gets 1384 applicants, of which 610(44%) are qualified and 396(29%) are hired. This method has the second highest rate of retention after 1 year of 290(73%). The total cost for employee referrals is $1,054,880. However, the cost per hire is $2,663.84 and the cost per 1 year survival is $3,637.52 which is the lowest amongst all the methods used. The kiosk methods in the recruiting data shows that it yields the highest number of job applicants that is 2280, of which 866(38%) are qualified and only 346(15%) are hired.

This method has a retention rate after 1 year of 216(62%) which is the second highest only after Agency. The total cost is $1,409,600 which is the highest of all the three methods used. The cost per hire is $4,073.99 and the cost per 1 year survival is $6,525.93. This reveals that this is the most expensive method used for recruiting per hire. The Staffing Agency method in the recruiting data shows that it yields 1132 applicants, of which 522(46%) are qualified and 392(35%) are hired. This method has the highest retention rate after 1 year of 336(86%). The setup cost is the highest at $800,000, whereas the total cost is $1,245,120. The cost per hire is $3,716.33 and the cost per 1 year survival is $3,705.71. Therefore, this division should focus on referrals and agencies for getting the best recruits.

CASE 6 – INTERVIEW

Hiring the right person starts with the interviewing process. Conducting a successful interview requires a skilled interviewer to adequately prepare for the meeting and to recognize and respond to the dynamics of the situation. Although being a skilled interviewer is part of the equation, applying the correct interview technique can be just as important. There are several types of interview techniques used by managers: traditional interview, behavior interview and situational interview techniques. Tanglewood is looking to revise its selection methods for the department manager position. Presently, there is no structure to the selection process for this position.

The current method of hiring department managers is similar to the one used for store associates. Tanglewood is looking to have a more efficient policy for screening. They would like to create a good sequence of staffing procedures by creating a selection plan for the department manager position as well as building a structured interviewing format which would include both situational and behavioral questions. A selection plan establishes an understanding of the job so you can hire the most qualified applicant. The plan lays out the major responsibilities of the job, identifies what KSAOs are needed to perform the job, and identifies the most effective selection procedures to use.

INADEQUATE KSAO MEASURES

There are a couple of inadequacies as far as the KSAO measurement is concerned. Those are the knowledge of legal Precepts and skill in analysis of financial and operational data. Both these KSAOs are not sufficiently measured during the selection process. It is essential for the department manager to be knowledgeable about the legal aspects concerning the retail business. The department managers in addition to having knowledge of legal aspects of the business need to have some kind of financial skills as well. A candidate’s knowledge in these fields can be tested through the interview process.

4. Knowledge of customer base served by the store| Yes| X| 5. Skills in managing personnel resource| Yes| X X| 6. Communication and speaking skills| Yes| X X| BIO=Biodata, MAE=Marshfield Applicant For, RK=Retail Knowledge, CON=Conscientiousness, EXT=Extroversion The current selection plan for the store manager bears some resemblance to the hiring process of store associates, but at a higher level. Tanglewood is seeking to change their hiring process for this position so as to hire the most appropriate applicant. Furthermore, the Spokane store where they are trying to fill this position has a symbolic value to the organization. It is not only the largest store in the chain but also nearly all managers are send to this store as part of their initial training. Therefore, it is important to create a hiring model that will help fill the position of store manager for this store but also help standardize the hiring process so that other stores can follow too. When we look at two of KSAOs, that is “Knowledge of Organizational policies and practices” and “Knowledge of Retail management policies and practices”, we can consider two options.

One is that the applicant should be knowledgeable about basic Organizational and Retail management policies and practices. Second is that if he is an external hire, he cannot be expected to know the Tanglewood’s Organizational and retail policies and practices. Only an internal hire would know that. As a result, we have marked the KSAO “Knowledge of Organizational policies and practices” and “Knowledge of Retail management policies and practices” as both “Yes” and “No”. “Yes” to be aware of basic Organizational and Retail management policies and practices, and “No” to the need to know Tanglewood’s Organizational and retail policies and practices.

Tanglewood uses various methods to measure the KSAOs needed for the position of store manager. This position needs Behavioral KSAOs which measure soft skills which are the attitudes and approaches the applicants take to their work, such as a ability to collaborate on team projects or the ability to communicate orally with a broad range of individuals. Hence it is very important that the store manager possesses skills like sound decision making and communication skills. Other KSAOs necessary for the selection should be weighed depending on their importance to the job and as to whether they can be further enhanced by training on the job. Following a standardized selection process can help recruit the best candidate to achieve Tanglewood’s goals and maintain its corporate culture.


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