Recruitment & Selection and the Management of Change

1. Recruitment & Selection and the Management of Change Chapter 4 of Thornhill et al Management of Change MBA 642 Robin Snell

2. Chapter Coverage A. Case Study of ‘Protection Royale’ B. Defining recruitment & selection. C. The ‘traditional’ model of recruitment & selection. D. A ‘strategic’ model of recruitment & selection and the challenges it faces. E. Where strategic R&S fits with higher-level strategies F. Strategic R&S when higher levels of strategy have already been decided (planned change) G. Strategic R&S when higher levels of strategy are still undecided (uncertain, unpredictable futures)

3. A1. The case of Protection Royale • The focus is on the Financial Consultancy Division of this insurance company • There had been very low turnover among the sales consultants whose job had been to market the company’s insurance products to insurance brokers. • Recruitment was by replacement: • advertise in the trade press • use specialist recruitment agencies • recommendations from existing staff • shortlist from applications • interviews, roles plays, psychometric testing • references • But the job became harder as products diversified and become more complex

4. A2. Protection Royale... • Customers lost confidence, the company lost its position in the marketplace • There was a big shake-up • The company recognised the need to have a more focused product range and high-performing staff who could persuade brokers that these were worth selling on to clients. • A new person specification emerged: • excellent product knowledge • influential and persuasive • negotiation skill

5. A3. Protection Royale ... • Furthermore, legislation introduced in 1994 required financial sales practitioners to hold various qualifications • Therefore there was a big reduction in eligible people within the external labour market. • Existing staff were deemed either ‘suitable’, ‘unsuitable’ or ‘possible’; many left • Line managers tried to head-hunt replacements, but failed. • A crisis became apparent

6. A4. Protection Royale ... • ‘Recruitment champions’ were appointed • Line managers and HR specialists were given performance indicators relating to recruitment objectives • A new search for direct recruits and for trainees. • A matrix of selection methods (e.g. Application form, testing of job knowledge/ skills/attitudes, psychometric testing, interviews, simulations, presentations, references) and competencies.

7. A5. Protection Royale... • National advertising • 7 day ‘phone-in’ interviews, followed by screening interviews • Assessment centre based selection • Appointment of an induction manager • Thorough procedural knowledge training for all those involved in the recruitment and selection process.

8. B1. Defining Recruitment & Selection Recruitment • Defining the vacancy (the job or role to be filled) • Identifying relevant personal attributes correlated with effectiveness (person specification) • Searching for and attracting relevant applicants Selection • Assessing candidates • Narrowing down the field • Making the final decision

9. B2. Internal vs. External Recruitment • Internal recruitment: meets manpower requirements from the existing stock of employees, except at the lowest level. • Internal recruitment may be vehicle for establishing ‘cultural fit’, morale, and commitment, reinforced by socialisation • External recruitment: meets manpower requirements by recruiting from outside • May be used as a symbol that ‘times are changing’

10. C. Traditional Recruitment & Selection Model (p. 96) • Vacancy • Job description • Personnel specification • Publicise vacancy • Shortlist • Interview • Select • Offer accepted? • References • Appoint • Engage and induct • Fits people to existing jobs • Not a vehicle for change • Reflects the status quo • Over-emphasis on the interview as a selection tool • Neglects the interests of customers, peers, providers • Needs adapting!

11. D1. Strategic Recruitment & Selection (see p. 115) • Linked to corporate strategy • Integrated with other HR strategies • Strategic job analysis • Incorporate core values • Front-loaded • investment R & S • Represent all stakeholder interests • Continuous • improvement • Reliable, valid selection methods • Job previews

12. D2. Challenges to Strategic Recruitment & Selection • Expensive • Short-term orientation/pressures • Often the lack of clear or coherent corporate strategy • Difficulty validating selection decisions The authors urge companies to embrace strategic recruitment & selection nonetheless

13. Upstream (bottom-up) integration E. Levels of Strategy 1. Corporate - Long term, big decisions, e.g. focus on innovation, cost reduction, etc) 2. Structural (e.g. delayering, decentralisation)- Operating procedures 3. Functional (HR) Other functions Downstream (top down) integration Culture Recruitment. & Selection. Training & Devel. Performance Mgt. Rewards Downsizing

14. F1. Recruitment & Selection and PLANNED/PREDICTABLE Change • When the strategists believe that the future is predictable, Human Resource Planning seeks to provide human resources for envisaged FUTURE jobs • Recruits will be selected on those attributes that are judged necessary for successful future performance

15. F2. Recruitment & Selection and PLANNED/PREDICTABLE Change We now consider strategic R&S under 3 conditions: F3a/b When corporate strategy has been decided F4 When desired organisation structure is known F5 When management has decided what assumptions it will make about employee motivational attitude and trustworthiness.

16. F3a. Recruitment & Selection flowing down from Corporate Strategy • Here the objective of recruitment & section would be to recruit people who will enhance the org.’s capacity to deliver its corporate strategy. • E.g. for an INNOVATION corp. strategy, the company would seek to recruit people with: • highly innovative behaviour • preference/ability for co-operative behaviour • relatively high risk taking • tolerant of uncertainty • moderate concern for quality of output • balanced orientation toward process and results • longer-term focus • For a QUALITY ENHANCEMENT or COST REDUCTION corp. strategies, the patterns would be different

17. Innovation (lo to hi) Self-autonomy (lo to hi, etc.) Risk taking Adaptability to change Comfort with certainty Concern for quality Concern for quantity Concern for outcomes Responsibility preference (avoids vs. seeks) Job/org involvement Skill base (broad-narrow) Time focus (long/short term) F3b. Employee Behaviour Continua Relevant to Corporate Strategy

18. Behaviours required in managers in Organic Organisations: networking team building information retrieval innovative problem solving Mgt competencies required in Organic organisations info search concept formation conceptual flexibility interpersonal search managing interaction developmental orientation self confidence proactivity achievement orientation (These may be needed by non-managers too) F4. Recruitment & Selection Flowing down from Organisation Structure

19. F5. Recruitment & Selection Flowing down from a desire to recruit Theory Y employees The target candidates would be • committed to the job • accepting of change • flexible Their precise qualities would depend on the context and circumstances that are envisaged

20. G1. Recruitment & Selection and uncertain/UNPREDICTABLE Change • When the higher level strategies are undetermined and uncertain, Strategic R&S seeks to provide new people who can help to shape future strategies and help the organisation to be more FLEXIBLE

21. G2. Recruitment & Selection and Uncertain/UNPREDICTABLE Change We now consider strategic R&S under 3 conditions: G3 When corporate strategy has NOT been decided G4 When desired organisation structure is NOT known but will be built around teams G5abcd When management has decided that it wants employees who will lead change and contribute to strategy development, whatever their level in the company

22. G3. Recruitment & Selection driving Corporate Strategy • There is a business case for building more DIVERSITY into organisations • enhances creative capability • greater flexibility in global markets • more widely equipped to face unpredictable challenges

23. G4. Recruitment & Selection driving Org. Structure e.g. Recruiting people in order to help reconfigure the organisation as delayered and TEAM-BASED rather than tall. • Therefore look for people: • who are dependable • have interpersonal skills • are self-motivated • have integrity • have leadership potential • are assertive • tolerate ambiguity • are able to cope with stress • Make recruitment a two-way process • Involve existing team members in the finalselection

24. G5a. Recruitment & Selection and Unplanned/Unpredictable Change (Future Imperfect) • When the strategists believe that the future is UNPREDICTABLE, Human Resource Planning seeks to provide human resources for jobs that cannot be prescribed • Continuous modifications are expected as the future unfolds, numerous changes are likely to systems of recruitment and development • Transformational criteria: • ability to work in the ‘learning organisation’ - one that is sensitive to environmental change and constantly changes and adapts through continuous learning • attributes that are required to enable change to happen, i.e. change agent competencies • leadership traits

25. Desired traits Experiments admits mistakes open encourages ideas makes joint decisions Undesired traits Cautions rationalises mistakes defensive discourage ideas dominates G5b. Necessary Characteristics for Workers in a ‘Learning Organisation’

26. G5c. Necessary Qualities of Change Champions & Change Agents • Take calculated risks • Good product knowledge & technical skills • Good motivation & work attitudes • Achievement-oriented • Good people skills and communication skills. • Probably require political skills and sensitivities to survive organisational politics games.

27. G5d. Qualities of Transformational Leaders • Charisma • Provides vision • Generates respect, trust & pride • Inspiration • Conveys high expectations • Intellectual stimulation • Promotes rational approaches to problem solving • Individualised consideration • Individual needs are addressed through personalised approaches

28. We Covered (recap) A. Case Study of ‘Protection Royale’ B. Defining recruitment & selection. C. The ‘traditional’ model of recruitment & selection. D. A ‘strategic’ model of recruitment & selection and the challenges it faces. E. Where strategic R&S fits with higher-level strategies F. Strategic R&S when higher levels of strategy have already been decided (planned change) G. Strategic R&S when higher levels of strategy are still undecided (uncertain, unpredictable futures)

29. QUESTIONS FOR DISCUSSION 1. Using the behaviour continua on slide 17, please indicate the employee behaviours that are most appropriate to corporate strategies based on a. Quality enhancement b. Cost reduction 2. How might recruitment and selection contribute to culture change programmes?