The Increased Demands of the Market: Automated Recruitment System - Essay Example

 The Increased Demands of the Market: Automated Recruitment System I. Introduction In order to respond to the increased demands of the market, firms have to proceed to continuous improvements of their systems and their policies. In this context, Lawler et al. (2000, 11) found that ‘corporations are undergoing dramatic changes with significant implications for how human resources are managed and the HR function is best organized and managed; The forces driving change include the rapid deployment of information technology, globalization of the economy, and the increasingly competitive dynamic business environments that corporations face. On the other hand, the size of a firm seems to be a crucial factor towards its structure and its strategic decisions. Specifically for the boundaryless organizations Nelson (1997, 49) stated that these organizations present ‘a challenge to some forms of job analysis, and traditional recruitment and selection practices that center around a job to be analyzed in terms of relatively stable tasks’. In the specific study the main issue under examination is the implementation of an automated recruitment system in ASDA. The presentation of this system is combined with the analysis of the relevant theoretical views in order to formulate an integrate evaluation without been influenced from the company’s financial performance or other similar factors. The paper also includes a series of suggestions for the development of the system’s performance and credibility in accordance with the standards set in the British commercial market but also the financial strength of the company. II. Recruitment as part of the human resources management Human resource management covers two large performance areas: ‘(1) leadership and employee motivation, and (2) HR practices (recruitment and selection, training, performance appraisal, and compensation management); Both areas have peculiar connotations in the context of strategic alliances, although other typical problems associated with cooperation between firms may arise’ (Lajara et al., 2002, 35). On the other hand, Luthans (1998, 17) studied specifically the role of HR sector in its traditional form and found that this role ‘has essentially been functional in nature and has revolved around specialized tasks such as HR planning, recruiting, job analysis, performance review, compensation, training, and legislative compliance while hiring, firing, and providing benefits to employees remain important tasks that must be accomplished in any effective organization’. As for the presentation of the position of recruitment within the HR management, this refers mostly to the particular elements of this HR activity. For this reason, Ferris et al. (1992, 47) found that ‘staffing positions in organizations may well represent one of the most important human resources (HR) management functions; Who is hired into the job from outside the organization as well as who is moved to another job internally (e.g., through a promotion decision), or who is moved out of organizations, ideally reflect job-relevant decisions and the maximizing of critical knowledge, skills, and abilities which contribute to an organization's overall effectiveness and its competitive advantage’. In the same context, Armacost et al. (1991, 115) suggested that ‘recruiting new employees to fill existing vacancies is an important function within human resource departments; Heneman et al. (1989) identified five interrelated stages in the recruitment process: planning, strategy development, searching, screening, and evaluation and control; These routine dimensions of the recruiting process are integrated into the daily routine of many HR departments and once a system is established, there appears to be little need for additional planning or analysis with regard to how the recruiting process should proceed’. However, the procedure of recruitment may face obstacles from the internal and external organization environment particularly if there is not an appropriate framework for the protection and the development (within the organization) that will help the completion of the relevant tasks. According to Slowik (2001, 77) there are ‘specific predictors that can be discussed during both recruitment and selection that can have a direct effect on resolving retention problems; In essence, recruiting, selection and retention issues can be managed effectively by correctly targeting the information that predicts hiring mistakes and high turnover while encouraging candidates with potential to view the employer and possible job offer favorably’. The importance of recruitment as a crucial human resources management strategy has been recognized also by Brady et al. (1994, 61) who found that ‘among the three strategies of attracting applicants to organizations (recruitment practices, employment inducements, and targeting specific applicant pools), recruitment has garnered the most attention from scholars and practitioners; Of the three recruitment dimensions, including organizational representatives (interviewer characteristics), recruitment messages (vacancy information), and recruitment timing (the time between recruitment stages), limited research has addressed the latter, whereas the majority of investigative effort has concentrated on organization representatives and recruitment messages’. In accordance with the above researcher recruitment cannot be applied without an appropriate preparation in the organizational environment while the continuous review of its strategy is necessary in order to avoid possible negative outcomes for the entire organization. IIa. Human resources management and technology Technology is closely connected with human resources management. In most organizational environments this interaction is expressed through the instalment of advanced networks systems which are used to connect the above sector with the rest departments of the organization but also with the public. Particularly for the firms that are using extended network systems Lighton (2001, 30) stated that ‘it is not enough for network orchestrators to create information standards; They must then use those standards to move their key business processes--project management, order entry, recruitment, human-resources administration, and budgeting--on-line, where those processes can be made accessible to employees, partner companies, and customers’. On the other hand, Bingham et al. (2002, 59) referring especially to the traditional systems used in the human resources management area said that ‘traditional selection devices tend only to be available to candidates who are in the labor market during a particular two to three week period of time; This results in providing hiring managers a somewhat limited sample of the true labor market interested in competing for this job opportunity’. The above views verify the interaction between the human resources management sector and technology, however, they do not proceed to the suggestion or presentation of specific forms of such a cooperation. Towards this direction, Ashbaugh et al. (2002, 8) studied specifically the types of systems that could be applicable in the HR management area. They came to the conclusion that these systems would be ‘distinguished’ in accordance with the technology used but also their capabilities and region of activity. They found that there are three main categories of such systems: a) the Specialized "Standalone" Applications; Whether utilized by itself or in conjunction with a central HR system, there are numerous software solutions designed for specialized personnel administration functions such as applicant tracking, compensation/benefits planning, skills/training/test results, time and attendance, and risk management, among others; Their main problem relates to redundancy in data entry and inability to support enterprise-wide usage, b) the "Best of Breed" HRMS Solutions; Just as some software vendors provide solutions solely for a government's financial management functions, there are many vendors that provide only the core HRMS solution (human resources, benefits, payroll, time and labor) without financial components; These solutions are different from "standalone" because they encompass a broader range of HR functions, c) Enterprise resource planning (ERP) systems which are based on software that integrates information from diverse applications into a common database; The major difference between ERP systems and their predecessors is the linkage of financial and human resource applications through a single database in a software application that is both rigid and flexible’ (Ashbaugh et al., 2002, 8). The above systems can be used in a specific organizational environment according with the demands of the HR management sector but also the level of technology used already by the company as an upgrade to the whole company’s systems is rather a difficult and costly task for the specific organization. III. The case of Asda IIIa. Description of the automated recruitment system The specific automated recruitment system will offer to the company the chance to develop a high range of recruitment activities. Particularly for the specific period of time that the company is planning to proceed to the recruitment of 7,000 new staff, the need for the automated system is emergent. This system offers the possibility for the conduction of the interview (at least at the first stage) without the intervention of the company. This means that the HR department will need just to check the results of the interviews conducting in the first place by the system and then decide on the interview (the second one) of an average of 20% of the applicants. If we consider that previously the HR management had to conduct a complementary interview for a percentage of 50% of the applicants, such a development is really impressive. It has to be noticed that the new system will be used (at least at a first level) to manage recruitment just for the higher levels of the organizational positions, i.e. for management and head office positions. As for the operation of the system it could be described as follows: it gathers personality information and helps identify the appropriateness of specific candidates for the supermarket sector. More specifically, the system filters the data gathered by the candidates ‘progressing those most compatible and flagging others for further investigation by the resourcing teams’ (presentation of the system in the business plan). The most significant characteristic of this system is its potential to gather a high volume of data even very detailed ones and analyze them in order to execute the task required. IIIb. Advantages of the new system In order to identify the value of the new system we could refer to the suggestions mad by Mooney (2002, 48) who presents a series of advantages that characterize the advanced systems used in the HR sector and particularly for the recruitment sector More specifically the above researcher states that ‘Internet based pre-employment testing will benefit your recruiting efforts by attracting more candidates and increasing your ability to recruit from afar while the real time scoring and automatic notification features will expedite your hiring process and reduce staff time you currently use for these activities; With careful planning and process management you will be able to tailor this kind of tool for a best fit in your overall recruitment plan. Bringing up an online test is a learning process’ (Mooney, 2002, 48). With a reference to the specific system, it could be characterized as integrate and powerful while its main advantage is its ability to gather a high volume of data and to progress them with accuracy. In this way the procedure of recruitment will be conducted in very short period of time while the data used will be protected from any possible fraud. IIIc. Possible negative outcomes from the implementation of the automated recruitment system As for the possible negative consequences of the introduction of the automated system these would be limited in the following two areas: a) the existence of the organizational capital for the financing of the system including any payment necessary in a short term period, b) the training of the HR staff in order to handle the new system successfully – so that the system will reach its highest level of performance. If the above two issues will faced successfully then the introduction of the new system should be proceed without any delay because it is necessary for the successful completion of the recruitment procedure that will begin the following months. IV. Recommendations In order for the company to decide on a specific HR management strategy there are a few issues that need to be taken under consideration and certain procedures that need to be followed. These issues have been included in a six-step recruitment process proposed by Buckingham et al. (2001, 18) in accordance with which: ‘1. The organization develops an approach to define the behavioral competencies expected of each key role; 2. The organization designs interviewing systems to select employees who show evidence of these behavioral competencies; 3. Once the employee is hired, the organization measures each person on these competencies, using a 360-degree tool, a manager/self assessment, or some combination of both; The total score on these behavioral competencies is weighted and then combined with other performance metrics to calculate a total performance rating; 4. The organization identifies the competencies lacking by individual, and sometimes by group, as part of a Training Needs Analysis. It labels these as "Areas for Improvement" or, perhaps, ‘Developmental Needs’; 5. The person and the manager design an "Individual Development Plan" which encourages the person to "work on" and "improve in" those competencies that are lacking; 6. Finally, the organization rates each person on these competencies again the following year. If there are signs of improvement in areas of weakness the person is rewarded with a higher performance or potential rating’ (Buckingham et al., 2001, 18). The above stages of recruitment process as presented by Buckingham et al. (2001) are in accordance with the structure of the recruitment process as it will be formulated after the implementation of the automated system. More specifically, the system will help the company during the stages 1-3 and in this way the firm’s HR management team will have to evaluate the candidates just at the second level. In order to prove the significance of the new systems we should proceed to the presentation of two relevant surveys. In the first of them early in 1992, the customers were asked ‘to assess recruitment and hiring activities and programs; More specifically, with the help of Professor Herb Heneman (University of Wisconsin-Madison) and a student intern, a 60-question survey was developed and distributed to assess performance in five key areas identified during focus group discussions: timeliness, communication, candidate quality, exam quality, and responsiveness/service orientation; According to the survey’s results there were area where the organizational performance was satisfactory (e.g., accessibility, professionalism and technical expertise) and others needing improvement (e.g., updating policy guidance, improving timeliness, and creating better and more flexible processes to assess applicants)’ (Lavigna, 1996, 424). During another survey presented by Keelty et al. (2002, 9) ‘interviews were conducted with representatives from 100 randomly-selected organisations with 200 or more employees, and 30 recruitment consultancies in New Zealand in order to determine current personnel selection practices, how those practices have changed over recent years, and respondents' beliefs about the predictive validity of alternative selection procedures; Results demonstrate a substantial increase in the use of psychological tests, greater standardization/structure of selection procedures and linking of selection methods to pre-determined job competencies’. The above findings prove the importance of the development of the recruitment process as part of the HR management of an organization. The structure and the operation of the entire process should be however decided based on the demands and the resources available of the particular organization. Conclusion The design and the supervision of the recruitment process is not an easy task. In this context, Bechet et al. (1993, 2) stated that ‘identifying and addressing future staffing needs is an important element of strategy execution and organizational change because the staffing strategies guide the recruitment, utilization, development, movement, and attrition of talent in ways that support long-term business requirements’. On the other hand, it is an issue of internal organizational structure and funds available for the realization of a plan of development. In the case of ASDA, the instalment of the automated system will lead to the significant save of time while the accuracy of the recruitment procedure will be at high levels. The use of the system after its implementation is an important element that needs to be examined carefully before the beginning of the relevant procedure. It should be noticed however that the offer of the appropriate training to current employees of the HR department will ensure the effectiveness of the system while it does not seem to exist complicated procedures that the employees cannot perform under the appropriate supervision. In general terms, the advantages of the automated systems are more than its disadvantages and for this reason the company should decide positively on its implementation. References Armacost, R., Jauernig, R. (1991). ‘Planning and Managing a Major Recruiting Project’ Public Personnel Management, 20(2): 115-121 Ashbaugh, S., Miranda, R. (2002). ‘Technology for Human Resources Management: Seven Questions and Answers’ Public Personnel Management, 31(1): 7-16 Bechet, T., Walker, J. (1993). ‘Aligning Staffing with Business Strategy’ Human Resource Planning, 16(2): 1-12 Bingham, B., Davidson, N., Ilg, S., (2002). ‘Great Candidates Fast: On-Line Job Application and Electronic Processing -- Washington State's New Internet Application System’ Public Personnel Management, 31(1): 53-61 Brady, R., Ralston, S. (1994). ‘The Relative Influence of Interview Communication Satisfaction on Applicants' Recruitment Interview Decisions’ The Journal of Business Communication, 31(1): 61-73 Brayfield, A. H., & Crockett, W. H. (1955). Employee attitudes and employee performance. Psychological Bulletin, 52, 396–424 Buckingham, M., Vosburgh, R. (2001). ‘The 21st Century Human Resources Function: It's the Talent, Stupid! Identifying and Developing Talent, One Person at a Time, Becomes Our Defining Challenge’ Human Resource Planning, 24(4): 17-22 Casey, B., Keep, E., Mayhew, K., (1999) ‘Flexibility, quality and competitiveness’, National Institute Economic Review, 168, 70-84 Doucouliagos, C. (2004). Governing the Firm: Workers' Control in Theory and Practice. Economic Record 80.251: 469-471 Ferris, G., Judge, T. (1992). ‘The Elusive Criterion of Fit in Human Resources Staffing Decisions’ Human Resource Planning, 15(4): 47-61 Keelty, Y., Mcdonnell, B., Taylor, P. (2002). ‘Evolving Personnel Selection Practices in New Zealand Organisations and Recruitment Firms’ New Zealand Journal of Psychology, 31(1): 8-23 Lajara, M., Lillo, F., Sempere, V. 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(1997). ‘The Boundaryless Organization: Implications for Job Analysis, Recruitment, and Selection’ Human Resource Planning, 20(4): 39-51 Slowik, S. (2001). ‘Objective Pre-Employment Interviewing: Balancing Recruitment, Selection and Retention Goals’ Public Personnel Management, 30(1): 77-89 Read More