Austrian Insurance Firms Recruitment Policy - Assignment Example

Executive summary The paper is a study of some of the flaws prevalent in an Austrian insurance firm’s selection strategy. An analysis is then carried out on other selection strategies. It was found the best way forward would be for the company to abandon its current method and adopt a holistic approach. Here, the most effective methods that can be used are interviews, references and biographical data, cognitive ability tests and personality inventories. Table of Contents Executive summary 1 Table of Contents 2 Introduction 2 Appropriateness of the firm’s selection strategy 3 Validity of using star signs in selection 3 Interviews 4 Work samples 5 Personality inventories 6 Honesty tests 7 Physical ability tests 8 References and biographical data 8 Cognitive ability tests 9 Recommendations 9 Conclusion 10 References 11 Introduction In today’s competitive business environment, firms must tap into all their resources so as to ensure that they stay ahead of the pack. With increased advancement in human resource, firms have realized that their employees could be one of their most valued assets. If a company uses the wrong selection strategy, then chances are that that it could be operating below its optimum. Besides that, a good selection process also protects the firm’s reputation as an equal opportunity employer because it ensures that every single individual is given a chance to enter the organization. (Adler, 2006) The paper will look at some of the alternative selection strategies that an Austrian firm can use and these methods will be contrasted to their current strategy which is based on star signs. After making comparisons, an overall recommendation will be given on whether it should stick with its current strategy or whether it should consider some of the latter mentioned alternatives. Appropriateness of the firm’s selection strategy The latter organization may have noble motives in choosing a selection process based on star signs, however, such a method could be missing out on certain crucial aspects and may be placing the firm at a disadvantage. Before looking at those shortcomings, it is essential to analyse some of the benefits of adopting such a strategy. Firstly, because the latter method has no intense statistical backing, then it is extremely difficult to determine its predictability. This ensures that no favouritism occurs and thus some level of justice is carried. Aside from that, the method is quite simple and saves on valuable company time that could otherwise be directed towards further revenue generation. (Sears, 2008) Validity of using star signs in selection Despite the latter benefits, one cannot undermine some of the problems that could emanate from such an approach. First of all, the method is not systematic in nature. The company has not considered the fact that there could be plenty of personnel out therefore who are skill full and useful to the organisation but do not belong to these star signs. There is no valid reason to back up the selection of their preferred star signs i.e. Aries, Capricorn, Taurus and Aquarius. In fact, it can be asserted that this method relies more on myths and beliefs that it does on science. There are no set ways in which one can certify the accuracy of the method. In other words, it revolves around trail and error. The firm’s strategy can be likened to a bet made by an individual who hopes that he will hit the jackpot with his one bet. This method cannot in any way guarantee good talent or skilful individuals and the firm needs to result to a method of selection in which a more talented and resourceful employee pool can be generated. (Fox, 2008) Interviews Interviews are a suitable alternative for the latter company to consider. First of all, interviews are normally carried out by a panel. Usually, the panel must be made up of a representative from the human resource department, a line manager and a person from the job type under consideration. This means that fair recruitment can be ascertained. Aside from that, interviews can ensure that all aspects of the vacancy are considered when selecting the right candidate so that there is no bias on one side compared to the other. Interviews are quite important in assessment of candidates’ personality types and their ability to fit into the job that they are applying for. Interviews are also great in clarifying some of the issues that were ambiguous on the job application or the CV sent by applicants. This is because interviews facilitate face to face contact between panellists and interviewers thus providing an interactive platform for both parties. Analysts also assert that the latter forms of selection work very well for expressive individuals or those who can be categorized as extroverts. In other words, jobs that necessitate frequent interactions with clients, colleagues, suppliers or other external partners may best be filled through interviews. Interviews can also provide the insurance firm with an opportunity to understand how fast candidates can act or think under pressure. The latter aspect is particularly important when recruiting employees for managerial positions. (Wood & Payne, 2009) On the other hand, there are a few downfalls to the latter method. For instance, some individuals do not perform well under pressure. Consequently, an interview’s tense atmosphere may cause some candidates to underperform and this may prevent them from revealing what they truly are. Besides that, the latter method may not work for more technical jobs such as those of a lab technician; these positions often require practical demonstrations. Interviews tend to disfavour introverts yet the latter category of individuals may be suitable for certain job types. Aside from that, interviews provide very little time to assess all the capabilities of candidates. Alternatively, there is little time for candidates to demonstrate what they can do for the firm especially when denied the opportunity to do so. All in all, it can be said that interviews usually yield accurate results for managerial and artistic type jobs. Their validity is often affirmed by the presence of several panellists. (Wood & Payne, 2009) Work samples Work sample analysis is another common alternative utilised in the workplace. Usually, such companies often look at past work carried out by potential employees so as to ascertain that they are recruiting the right individuals for the job. Most often than not, the use of work samples is common in routine jobs that may not vary from one firm to another. This means that the potential employee can replicate the same results that he / she produced in his / her previous firm into this particular firm. The latter method is also favourable for jobs that need minimal interaction with other individuals. It can save valuable time for the human resource team because a work sample is testimony of what a candidate can do. (Wood & Payne, 2009) Nonetheless, work samples have their shortcomings as well. Firstly, a company has no way of ascertaining that work samples submitted by certain candidates have actually been written or done by the said individuals. It is possible for one individual to get a friend to do the work for him and then claim that he or she completed it. This casts serious doubts on its validity. Besides that, work samples have no time frame and may not allow the company to assess an employee’s ability to carry out tasks under pressure. The latter selection method is therefore inaccurate when it comes to deadline oriented jobs or managerial positions. However, for routine/ repetitive tasks with little room for creativity, it can be a fair method of determining the best candidate for the job. Usually, this approach yields the most effective results when it has been combined with other rigorous techniques such as interviews. (Adler, 2006) Personality inventories Personality inventories are quickly becoming some of the most effective ways of selecting candidates in the corporate arena. This is especially after the realization that it takes more than high IQ scores to become successful in business. In fact, it has been shown that Emotional intelligence is a more accurate predictor of success in the latter issues. This statement is the basis upon which personality interviews are carried out. Research shows that certain job types favour specific personality types and successful organisations are those ones with an ability to merge these two concerns. For instance, lawyers and advocates rank highly in terms of extroverted characteristic. (Grout, 2006) Computer engineers, network designers, research analysts are best carried out by persons with minimal social skills but a concern for what has to be done. In this regard, it has been shown that personality inventories are actually quite accurate in predicting whether a certain individual can meet the demands of a certain job type. However, such a method still has its deficiencies. First, there may be some job groups that do not fit neatly into either sides of the personality type scale. Consequently, candidates chosen for these posts may not be the most appropriate for those tasks. Besides that, it is often possible to find that some individuals lack personalities required for certain jobs but may still be able to carry them out. Likewise, some individuals may posses them but when given the job, they may fail to deliver. The underlying reason behind the latter observation is that it takes more than just personality to complete one’s responsibilities. In other words, this method under looks technical aspects such as skills and expertise yet they may be more important than personality in certain instances. (Grout, 2006) Honesty tests Honesty tests are somewhat similar to personality inventories. However, the latter approach usually dwells on one quality as the sole determinant of candidate’s appropriateness. This kind of approach is usually favourable for job positions that entrust employees with huge resources or those ones in which staff may be tempted by external parties by bribes and the like. Also, in the event that a company does not possess efficient management to critically analyse all their staff members’ actions, then honesty tests are quite appropriate. Examples of such job groups are; bank tellers, supermarket cashiers or loan supervisors. The downside to this method of selection is that some individuals may have perfected the art of passing such tests but they may not be truly honest. Besides that, there are still other important factors that need to be considered when recruiting candidates and some of them include interpersonal skills, leadership capabilities and teamwork skills. (Sears, 2008) Physical ability tests Physical ability tests are also necessary for those kinds of jobs that are repetitive and manual in nature. More often than not, these tests are frequently carried out in the military, for factory employees, manual labourers at a farm etc. Such jobs usually require minimal educational qualifications and sometimes even minimal experience. If carried out correctly, they can ensure that manual work within an organisation is carried out efficiently and with the most capable individuals. However, analysts argue that such tests treat human beings as objects that can contribute towards heightened profits within one’s business. Additionally, the very design of the test can harbour inter professional development within a certain company because it assumes that all that matters is an individual’s physical ability. (Grout, 2006) References and biographical data References and biographical data are highly instrumental in various companies’ human resource strategies. This is because they can provide an insight into what a certain candidate has done in other institutions or firms and whether this is related to what the specific firm is looking for. It can save a lot of precious recruitment time especially in instances where a job vacancy received too many responses. This method can be an important way of sieving out unsuitable candidates. On the other hand, the latter method is more effective when combined with others because when utilized alone, it cannot be very accurate - it does not incorporate personality issues or talent related issues. (Sears, 2008) Cognitive ability tests Cognitive ability tests can also be a plausible option for the latter company especially given the fact that there are several positions within an insurance firm that require cognitive abilities. This method is fairly accurate and can ensure that skilled persons have been employed within the firm. On the other hand, this method ignores personality type aspects. (Adler, 2006) Advantages and disadvantages of using star signs It has been established that the insurance firm’s selection strategy has more limitations than benefits. While the use of star signs may prevent favouritism and save on time, it has a number of problems. First it is not valid or reliable as it is based on trail and error. Additionally, the firm is missing out on some of the most resourceful people who may not fall within their selected star signs. (Grout, 2006) Recommendations In order for this firm to realise its maximum potential, it would be more effective if it combined several selection processes. This would ensure that weaknesses in one strategy are made up by strengths in another. It could first start with a request for work samples, references and biographical data from candidates. Thereafter, candidates can be subjected to a cognitive ability test followed by interviews. Finally, the organisation can carry out personality inventories to ensure that its final candidates are indeed the right ones. The latter method has been selected because it would favour an insurance firm which has less manual work and more strategic tasks. (Adler, 2006) Conclusion The Austrian insurance firm would be better off looking for another selection process as the use of astrology signs is neither accurate nor valid. However, as it has been above, other methods have their pros and cons as well. Nonetheless, the most relevant and effective processes include interviews, personality inventories, cognitive ability tests, references and biographical data. References Sears, D. (2008). Successful Talent Strategies. Melbourne: Polity Press Wood, R. & Payne, T. (2009). Competency based recruitment. Oxford: Oxford University Press Adler, L. (2006). Building great teams through power hiring. London: Mc Millan Grout, J. (2006). Recruiting Excellence. New York: Putnam Publishers Fox, J. (2008). Do not send a CV. Nashville: Abingdon Publishers Read More