People Management Based On Philosophy Commerce Essay

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People management are based on the philosophy that human resources are the most valuable assets that can dynamically adapt to sustain an organisation success in any business environment. For an organisation to have a competitive advantage, then managing people effectively is crucial by drawing on their skills, capabilities, expertise etc to meet its unambiguous objectives. Among the core HR activities, obtaining the number and type of people the organisation needs to achieve its aims and objectives through a process of matching activity between applicants and jobs with a clearly defined and specified vacancy within an organisation. These processes of recruitment and selection can be said to be fundamental to the operation and functioning of an organisation as these helps to attract, encourage and create a talent pool of candidates at a reduced or minimum cost to enable best candidate selection which helps to increase the success rate of selection process and reduce the probability that job applicants once recruited and selected will leave the organisation only after a short period of time. As these, if inappropriately done could cost the organisation an overall cost of leaving which includes; payroll, administration, recruitment and selection, time, fees, induction training cost etc.

The recruitment process of Framley Engineering designs used in these case study is based on their niche market strategy or policy of being innovating in their product with emphasis being placed on the research and development engineers as the drivers of the companies new products which indicate the strength of the organisation which must be matched with an effective and efficient recruitment and selection process.

The recruitment process adopted shows that they concentrate mostly on recruiting employee externally to fill in their vacant position rather than sourcing for suitable candidate within the organisation. It shows that their employees are not groomed to a level of filling-in such vacancies, or rather, the organisation recruitment culture might feel that its unique product and innovation is based on fresh ideas from external recruitment rather than relying on their existing employees which might not do things differently which is not good if they want to introduce new and innovative product to remain ahead of their niche market segmentation. However, a proper recruitment process aid and increase the success rate of the selection process to hire and retain employee, which can be founded upon good job analysis: reviewing the job and clearly describing, via the person specification, what the employer is looking for. Once organizations have successfully recruited candidates, they must select the best ones for the positions under consideration. Organizations use various tools to help them select individuals. Claydon, (2004) suggest that selection is the process in which organization chooses prospective employee from a list of applicants who best meet the criteria for the available position, considering the current conditions in its peculiar business environment'. But in this case study it shows that the HR had not realized its role has been involved in the selection process as well, leaving its final selection to the departmental heads which indicate that the HR had not involve them in the recruitment and selection strategy (plan) to be used, as not all departmental managers have managerial skills: ability to conduct interviews make objective selection or having a proper overall understanding of their organisational psychology and how each individual employee or potential employee should fit into the organisation objectives and/or policy.

SWOT analysis of their recruitment and selection process:

The SWOT (strength Weakness Opportunity and threat) analysis of Framley Engineering designs approach to its recruitment and selection process will greatly depend on the organisations' policy and recruitment culture, its internal strength, market segmentation and overall organization mode of operation among other internal and external business environmental factors.


Their strength includes;

Ability to conduct external recruitment to source for employees and placing importance on R&D engineers as the drivers of its new products as a 'first-mover' in its field.

Its ability to segment is market to identify their target customer and adopting a niche strategy.

Their use of technology that has been created in-house to manufacture and sells high-quality specialized electronic goods.

These mode of operation and understanding of its market segment and customers' requirements with attempt to remain the 'first-mover' in its field as a company (that is expanding steadily) could influence their external approach to recruitment in order to gain a wider audience to increases their chances in recruiting the skills needed, to get new and non stereotype approach to creating a dynamic innovation for the organisation through new recruit.


Framley Engineering designs weakness includes:

Inability to perform in-house recruitment.

High labour turnover.

Its extensive reliance on external recruitment.

Poor selection process in selecting best qualified person specification for the job characteristic.

Lacking flexible person approach in training to enable new employee meet up to standard and adjust to his or her job characteristic.

Framley extensive reliance on external recruitment point out the critical level of it labour turnover which does not only show wastage but its general skill shortage. Ahlrichs (2000, p.2) comments that: "Employers have not ignored the hiring and retention crisis, but their choice of responses has been inadequate at best and off-target at worst. Misled by memories of applicant lined up outside the door, they have confused on the recruiting portion of the problem and largely ignored retention. They have regarded employees as mere list of hard skills, as plug-in parts who are interchangeable as long as the resume matches the job description. They continue to hound their HR department for more and better candidates while ignoring the cost of turnover and HR's strategies to bond with, develop, and retain existing employees".


These include:

Its ability to expand steadily in its niche market with the right and steady work force.

Ability to increase and maintain its market share with its 'first-in-the-market' innovation and the appropriate engineers for its research and development.

Opportunity to maintain a monopoly of their current niche marketing strategic.

Framley Engineering designs have this opportunity to explore to its maximum by putting in place appropriate solution to its hiring and retention problems with adequate training to motivate and develop its employees. Having place much emphasis on the company's commitment to innovation and its strategic importance on the employment of R&D engineers as the drivers of new products with a business goals that depended on getting and keeping good engineers.


They include:

Loss of talent and internal expertise to competitors

Becoming unattractive to potential candidate with their present labour turnover.

Lose being employer of choice among its competitors.

Loss of retainable resources due to labour turnover in term of overall cost of leaving which includes; payroll, administration, recruitment and selection, time, fees, induction training cost etc, which could treating liquidity for more effective and efficient competition.

Organisation should aim at making itself attractive to potential candidate in the course of sourcing for candidate to fill its vacancy, by being the or remaining the employer of choice among its competitors. Organization could outshine its competitors by effective management of its work force's as the most valuable asset by combination their skills and abilities with appropriate individual motivation to exploit environmental opportunities and neutralise potential threats. It has been a cliché that the people are the most important resources in business. Effective use of people may seems to be one of the primary assets of a business aside from its financial, technological and physical resources therefore it has to be managed effectively and strategically.(Ozbilgin, 2006). Human resource's policies can influence an organisation's competitive position by controlling its overall costs, improving quality, creating distinctive capabilities and restructuring its recruitment, selection and retention approach.

Successful Approach to Recruitment and Selection is most likely to be;

A Job Analysis:

Starting a recruitment process one needs to perform a job analysis, after given consideration to pre-recruitment analysis which address the question "is there really a vacancy to be filled and from where should it be filled". Job analysis documents the characteristics and requirement of the job that needs to be performed which can be derived from the job description by collecting data on the present and historical task, which aid a more focused and cost effective recruitment search.

Job description:

Another process of pre-recruitment analysis in identifying what job need to be fill is through job description process which involves; Identification data (job title, department, pay, grade, main location), Organisational data (responsible to and for other working relationships), Job summary (a brief statement of why the job exists), Job context (an explanation of the principal duties with brief summarized descriptions), Miscellaneous (covering unusual arrangement such as shift, working a need to be mobile).

Person specifications:

Commonly used terms among two previous recruitment process is the personal specification or job specification. These describe the ideal person for the job using the terms skill, experience, qualification, knowledge, personal qualities and competencies as substitutes for person's specifications, with carefully drafted application form design to ensure collection of sufficient information from each candidates if selected.

Recruitment sourcing:

Sourcing involves advertising, which are usually through media, such as the Internet, newspapers, job centres, window advertisements, graduate recruitment programs, professional publications etc; and recruiting research, used to source for relevant talent not derived from other recruitment advertising methods.

Recruitment strategy:

Organisation should aim at making itself attractive to potential candidate in the course of sourcing for candidate to fill its vacancy, by being the or remaining the employer of choice among its competitors, defining the skills and competencies needed and planning the methods of getting the right number and required people. The recruitment strategy needs to consider the skill and behaviour requirement against the existing competence frameworks, analysing the factors affecting decision to join an organisation in question which might includes; career opportunities, pay and benefits package etc. Also, an analysis of the labour market highlights the 'SWOT' analysis of an organisation in taking advantage of its competitor in order to attract the best candidate which is crucial to the fundamental of any organisation as employees are the most valuable asset of any organisation. However, an alternative strategy can be considered such as; outsourcing, re-engineering, increase flexibility, skills training, multi-skilling, downsizing etc. Alternative strategy might also include stepping up retention strategies, offering 'golden hellos' or attractive relocation packages, or even relocating the organisation to an area where recruitment prospects are more favourable.

Organizations can tailor their recruitment strategies to the specific position(s) they are seeking to fill. These strategies may differ depending on the level of the position.

In the survey carried out in the Business week, there are various recruitment strategies used by various organisations with their level of effectiveness.

Use and effectiveness of various recruitment strategies

Advertisements Percent Using practice Average Effectiveness

Internet (e.g., bulletin or job boards) 90 2.59

Local newspapers 64 1.77

Trade publications and magazines 51 1.81

National newspapers 29 1.48

Direct mail 25 1.73

TV or radio 21 1.60

Movie screens 7 1.22

Agencies or Services

Employment agencies 60 2.03

Temp agencies 52 1.96

Government employment services 28 1.47


Job fairs 66 1.83

College recruiting 59 2.16

School-to-work partnerships/internships 42 2.08

Targeted minority recruiting (e.g., NAACP,

minority colleges/organizations) 40 1.74

Partnerships with community organizations 35 1.79

Military recruiting 23 1.76

Retiree job banks 12 1.52

Professional Associations

Professional organizations 60 2.05

Professional conferences 52 1.97

Internal Resources

Employee referrals 90 2.57

Company's web site 88 2.26

Internal job postings 78 2.23

Walk-ins, unsolicited resumes 67 1.48

Toll-free number 33 1.58

Other 10 2.58

*Note: 1 = Not Effective; 2 = Moderately Effective; 3 = Very Effective

Sources: adapted from Business week

Screening and Selection:

Short listing a suitable candidate for a job, one have to screen the candidate in order to assess their level of skill based on capability or/and experience depending on if the organisation is seeking to employ a trainable candidate or a well experience one or both. Skills can include communication skills, interpersonal skills, computer skills etc. The screening processes also address area of qualification which is usually found in resumes and job application forms, through interviews and aptitude testing etc.

Selection Strategy:

The selection practices an organization uses depend on the positions to be filled. Selecting candidates for various positions typically requires different practices or methods. Using tests to measure mechanical, clerical, or other types of abilities might be more appropriate for certain jobs (e.g., plumber, administrative assistant) than for others (e.g., manager). Assessments are typically used for assessing critical competencies required for upper Organizations use a variety of practices to select their employee's upper level positions and might not be appropriate for lower-level jobs (Byham, 2005). The first steps in selection processes might involve the collection of basic candidate information and also require job candidates to submit a resume and complete a standard application to summarize education and work history.

There are various selection practices as suggested in the survey carried out in Business week.

Selection Practices:

Reference checks

Applications-forms requesting standard, verifiable information (e.g., education or work experience)

Resume screening-manual

Training and experience evaluations-providing a checklist of specific skills and/or experiences

Resume screening-computerized

Biographical data

Testing and assessment

Drug Tests

Knowledge tests-tests that measure job-specific knowledge

Performance/ Work sample tests-for example writing a computer program under structured testing conditions

Ability tests-mental, clerical, mechanical, physical, or technical

Motivational fit inventories

Assessments-role plays and simulations

Personality inventories-MMPI, Hogan, Myers-Briggs

Integrity tests


Behaviour-based interviews-asking candidates to describe specific examples of their skills

Situational interviews-asking candidates to respond to a hypothetical situation

Computer-assisted interviews-a computer screens candidates based on their responses

Sources: adapted from DDI Journal (2004).

In structured behaviour-based interviews, candidates are asked to describe specific behavioural examples of their skills. A variety of research studies have been conducted comparing the validity of different interviewing techniques Behaviour- or experience-based interviews were found to predict subsequent job performance better than other interviewing techniques (e.g., situational interviews) (Pulakos & Schmitt, 2002). More organizations are opting to perform such structured interviews as part of the selection process to increase the likelihood of hiring candidates who will be successful in the positions. In the future, organizations will make much greater use of behaviour-based interviewing.

Strategic approach to staff selection:

Recruitment stages and selection process builds upon the previous stage. The whole process is founded upon good job analysis: reviewing the job and clearly describing, via the person specification, what the employer is looking for. One of the key issues in the person specification is whether the employer is seeking for a fully trained or someone who is trainable but not yet fully trained. The formal is looking for current competence, the latter for trainability. This then has a profound effect upon the selection process. Testing for competence leads the employer to design test and ask questions that simulate the post to be filled, with appropriate use of one or all of these selection tools which includes; interviews following contents of CV/application form, structured interview (panel), test for specific skills, general ability test, literacy and/or numeracy test, telephone interviews, personality/aptitude questionnaires, assessment centres, group exercise (role play), pre-interview references and online test.


In choosing the appropriate selection tools to be used after attracting suitable candidate for the job through the recruitment process an organisation has to consider the sufficiency of the selection tool if it using enough tools to cover the topic on the person specification, the validity of the selection tool if the result obtained shows if the right test had been conducted, the authenticity of the selection tool if it is the right candidate's work, the reliability of the selection tools if it is repeatable with the same result and the cost of the selection tools in order to know at what point does the cost of the test carried out exceed the value of the data they provide.

Executive Summary: