Recruitment & Selection and the Management of ChangeChapter 4 of Thornhill et al Management of Change MBA 642 Robin Snell1

Chapter CoverageA. 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)2

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 companys 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 3

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 highperforming 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

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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 5

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.

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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.

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B1. Defining Recruitment & SelectionRecruitment 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

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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

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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!

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D1. Strategic Recruitment & Selection (see p. 115) Linked to corporate strategy Integrated with other HR strategies Front-loaded investment R&S Continuous improvement Represent all stakeholder interests Reliable, valid selection methods Job previews11

Strategic job analysis Incorporate core values

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 nonetheless12

Upstream (bottom-up) integration

E. Levels of Strategy1. Corporate - Long term, big decisions, e.g.focus on innovation, cost reduction, etc)

2. Structural (e.g. delayering, decentralisation)- Operating procedures

3. Functional (HR)Downstream (top down) integration Culture

Other functions

Recruitment. & Selection. Training & Devel. Performance Mgt. Rewards Downsizing13

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

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F2. Recruitment & Selection and PLANNED/PREDICTABLE ChangeWe 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.

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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

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

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

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F5. Recruitment & Selection Flowingdown from a desire to recruit Theory Y employeesThe target candidates would be committed to the job accepting of change flexible Their precise qualities would depend on the context and circumstances that are envisaged19

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

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G2. Recruitment & Selection and Uncertain/UNPREDICTABLE ChangeWe 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 company21

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

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G4. Recruitment & Selection driving Org. Structuree.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 final selection23

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

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G5b. Necessary Characteristics for Workers in a Learning OrganisationDesired traits Experiments admits mistakes open encourages ideas makes joint decisions Undesired traits Cautions rationalises mistakes defensive discourage ideas dominates25

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.26

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 approaches27

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)28

QUESTIONS FOR DISCUSSION1. Using the behaviour continua on slide 17, please indicate the employee behaviours that are most appropriate to corporate strategies based ona. Quality enhancement b. Cost reduction

2. How might recruitment and selection contribute to culture change programmes?29