Do Mistakes in Recruiting Create a Bad Reputation? Research Paper Example

Introduction

In the current first paced world where technological advancement is rapidly driving globalization, as well as changing the way Human Resource Management operates, hiring the best candidate is more important than ever. As the world become more competitive, Organizations realize that hiring and retaining the best talent will give them a distinct advantage in years ahead. On the contrary, committing mistake during hiring is costly.  It not only adversely affects the company’s productivity but also its reputation, thus reducing its competitive advantage.

Purpose

Hiring wrong individuals or having to terminate an employee shortly after hiring increases the costs, which affect the company’s productivity as well as its reputation.  The research aims at investigating the implication of the hiring mistake to an organization. In particular, the research will investigate how mistakes during recruitment and talent acquisition affect the reputation of an organization. At the end the report aim at providing a list of recommendations that will help companies avoid committing hiring mistakes.

Literature Review

Journal

Journal# 1:  “How does Internet recruitment have effect on recruitment performance?” authored by Veger Maarten in 2006.  Veger (2006) emphasizes that recruitment is a support process, which is the primary process that is not only aimed at establishing the organization’s primary goals, but also the support of other processes in the organization. Therefore, acquisition and the retaining high-quality talent are crucial to the success of an organization. This article provides a more effective guideline that determines the success of hiring the right people to be stationed at the right positions accordingly.

Journal# 2: “Recruitment Strategies: Managing/Effecting the Recruitment Process”, Authored by Margaret, 2012. According to Margaret Richardson’s “Recruitment Strategies: Managing/Effecting The Recruitment Process”, she states, “as the job market becomes increasingly competitive and the available skills grow more diverse, recruiters need to be more selective in their choices, since poor recruiting decisions can produce long-term negative effects…” (pg. 2). In her report, she discusses the importance of recruitment to the function of human resource management, as this activity affects the organization’s performance. It is understood that bad decisions with recruitment can affect the performance of the organization, and limit achieving their business goals. Furthermore, this reading gives a clear vision on how actual situations have proven such claim over incompetent hiring procedures resulting to incompetent business operations.

Journal #3  “Building the winning organization through high-impact hiring” authored by Bressler, Martin in 2014. In this reading, the author believes that selecting and hiring the employees that are capable of helping the organization achieve their mission is based on effective leadership. “Bad hiring decisions could not only negatively affect a company financially, but could also harm employee morale and possibly lead to even more bad hiring decisions” (pg. 2). Organizations hire who they believe that might produce preferred changes in the culture organization. Bressler points out decisions based on someone’s race or gender could harm the company in numerous areas, as well as hiring people with similar abilities or experiences. When failure to hire the right people occurs, there is always a sense of determined indication on how the whole business would fair in the face of such mistake.

Journal #4:  “Selecting the good vs. rejecting the bad: Regulatory focus effects on staffing decision making”. Authoured by Kuhn, 2015. In this reading, it is highlighted that if the company is interested in the training and development of the new employee they can waste resources and time when the employee turns out to be incompetent (Kuhn, 2014). Furthermore, the data contained in this material creates a workable sense of distinction on how regulatory policies could resolve issues of unfair and unguided hiring of new personnel; hence mandating a better sense of what good human resource management should be about starting from the hiring stage.

Journal #5: “Challenges in Recruitment and Incentive Management-Empirical Studies on the Effects of Informational Asymmetries, Monetary and Non-Monetary Job Characteristics” authored by Falk, S in year 2014. In this material, it is repetitively noted that human resources will lose the time in planning, preparing interviews, and selecting, the time in giving orders, advice, and information from the top management (Falk, 2014). Given the many responsibilities of the department dedicated to human resources management, it would help to be careful enough in choosing the right people in the first place; this reading gives tips and particular guidelines on how such matter could be handled successfully.

Journal #6 The role of attributions and fairness in understanding job applicant reactions to selection procedures and decisions”. Authored by Ababneh, K. I., Hackett, R. D., & Schat, A. C. in 2014. Herein, the author notes that the new employee can make numerous mistakes, which lead the company to lose customers, and impede the progress of work (Ababneh et al., 2008). This statement encourages human resource managers to be more careful as it will mean so much to the organization if the right people are hired for open positions.

Books

Book #1 “Recruitment and Selection: Hiring the Right Person. Society for Human Resource Management”. Authoured by Gusdoft, Myrna in year 2008. Gusdorf (2008) suggests that hiring people with the same point of view and opinions, limits the ability to identify potential opportunities within the organization (211). Therefore, hiring new employees should occur only after careful consideration, and only when the organization anticipates a long-term need for additional labor. This would reduce the tension brought about by the need to retrench workers as the labor force becomes larger in number that their services become inefficient if not needed by the company anymore.

Book #2: “Managing Human Resources.” Author: Snell, Scott, Bohlander and George. date: 2013. According to Snell and Bohlander (2013), organization’s overall profitability and revenues are positively correlated to the investment placed in each new employee (145). The costs to recruitment and acquisition can have staggering impacts that can stem from costs to replace management, technical, and supervisory employees that can cost almost 100 percent of employee salary.

Book #3: “Smart hiring: The complete guide to finding and hiring the best employees”.  Author : Wendover;  date: 2007. Wendover, R. W. (2007) emphasizes that hiring is one of the valuable steps that organization can use to maximize their efficiency (211). It is, therefore, essential that hiring manager pay special attention to each stage of recruitment. This reading provides the pros and cons of having the proper managers handle the hiring procedures accordingly.

Book #4: The New Division of Labor: How Computers Are Creating the Next Job Market. Authors : Levy, Frank, Murnane, Richard.  Date 2004.  Much of the upcoming workforces are answering advertisements, and community through their computers. (Levy and Murnane, 2004) It is imperative that organizations do not make mistakes in recruiting the wrong candidates that could severely impair the reputation, as well as overall profitability of an organization.

Newspaper/Magazine

Newspaper #1: title “United Aggressively Responds to “United Breaks Guitars Part 2.” CBS. Author : Synder, Brett. Date:2009. What is the cost of a bad reputation? For some major corporations, a bad reputation can cost upwards to $180 million, as for the case of United Airlines. Musician David Carroll wrote the popular song, United Breaks Guitars, after he witnesses the airline damage his guitar and refused to pay for the damages. As detailed by CBS News in in July 2009, the song was a hit on YouTube with over 15 million views, and the popularity of the song cost the company hundreds of millions when following the release of the video, United’s stock fell by 10 percent. (Synder, 2009) Organizations operate within a landscape that is rife with surmountable threats to their reputations. Quoting these news items provides a strong indication on how wrong personnel hiring could ruin the reputation of the business and lower down its chances of retaining loyal customers in the long run.

Newspaper #2: title: How Much Does a Company’s Reputation Matter in Recruiting? MIT authors: Auger, Pat, Timothy M. Devinney, Grahame R. Dowling, Christine Eckert and Nidthida Lin. (2013). In a study conducted Auger, et al, (2013) in “How Much Does a Company’s Reputation Matter in Recruiting?” A survey of 527 MBA students in the top schools around the world, found that 96 percent believed that reputation was an essential factor in their choice of potential employer. (Auger et al, 2013)

Research method

A qualitative research approach is proposed for this study. A systematic review of literature will be carried out to identify the relevant work on the topic of study. To capture relevant information document were electronically searched from a wide range of websites. The documents were then evaluated to determine their relevance to the topic of studies. 12 relevant studies which included 6 journals, four book and 2 newspaper source were selected for review.  In addition,  I will interview hiring manger, consultants and groups of employees and customers.  The data from the interview will be coded and analyzed on the third assessment.

Research participants

The following people are expected to participate in the study: two interviewer, hiring managers, consultants, and key informant group.

Research Findings

For this presentation of research findings, the Pareto Analysis principles shall be taken into account. The following steps shall be considered and responded to accordingly:

Identify and list problems

It has been found through this research that the inability of hiring personnel to follow company protocol in choosing the right people often cause huge problems later on especially when the hired individuals are faced with difficult situations that they may have not been properly screened out for. Another problem discovered was that of the fact that when it comes to determining the capacity of the hiring personnel to choose the right person for the job, it could be that the condition would be extensive and specifically indicative of what is called as the condition of lack of control on the process. Although there are protocols of screening and they are followed accordingly, it is essential that the personnel have had ample experience in handling the said types of responsibilities. Without it, the individuals assigned to hire the people would have a hard time reading through the person through the utilization of at-point psychological state analysis and assessment right on the spot while the hiring procedures are being undergone by each applicant.

Identify the root cause of each problem

The two problems mentioned herein have been specifically caused by the lack of empowerment and support from the business administration. The weakness of the hiring protocols’ application is distinctively caused by the condition by which work on the part of the administration has not been fully dedicated towards assuring the protocol’s implementation. It is also because of the administration’s weak assumption of its role to find the right personnel to handle hiring activities that makes it harder to put the right person in the post. This means that when it comes to determining the overall condition of the situation, the administration ought to step up and do its job in the process.

Score and analysis of problems

Between the two problems mentioned, the capacity of the organization to put the right in personnel in the hiring post would have provided a strong solution to the issues that have been resulted from the incapacity of the organization to seek proper individuals who have the right attitude and the right experience to handle the task of hiring new employees. It is not enough that the personnel has distinct qualifications [academic] to fit the job post; what matters is that the personnel have gained ample experience that makes them the best choice for the work at hand. It has been realized that it is from the inexperienced ones that problems such as discrimination of applicants and unethical treatments of new hires spur out from.

Grouping problems together by cause

As observed from discussion, both problems presented were caused by weak administrational guidance. It is expected that with closer attention given by the administrators themselves, right hiring personnel would be able to implicate the application of hiring protocols while also identifying with the course of development that the individuals placed in assignment to do a good job in choosing the right persons for the positions opened for filling.

Adding up the scores for each group

Both problems are considered to receive an average score as resolving them takes one step which involves administrational engagement in the business’ operation. This accounts for a more identifiable form of development, one that basically attests to the fact that when it comes to determining the cause of the situation that has spurred from wrong hiring process of people, it is essential to go to the roots of the problem and change the status of operation that the organization takes into account regarding the matter.

Take action, giving priority for the problem-group with the highest score

The need to pacify the problem is necessary enough in order to save the organization as well as its reputation when it comes to determining the hiring basics that the business should be highly noted for. The capacity of each hiring personnel to see beyond the obvious being of the applicants is a necessary requirement in order to choose the right people through seeing their capacities beyond their differences and diversities. Being able to put the right person to put applicants on the right posts takes experience and a balanced view of human basics; only those who are able to seek a balanced view of each person as a performer amidst particular differences against others is what makes a good hiring personnel effective enough to take the responsibility and the roe of picking the right individuals to mandate the work and operations that the business is basically dependent upon.

Recommendations

Based from the interviews and the research procedures taken into account in order to complete this implicative study, here are some of the suggestions that has been formed along the way in order to resolve the problems found to be extensive in form and ought to be responded to accordingly:

1. The creation of stronger and more detailed protocols in hiring ought to be established and imposed for proper application and implementation. Only through this could the hiring process be solidified and well-directed.
2. The distinction of procedures in putting the right personnel in the post of hiring to handle the job is an essential part of the process; this is where the concept of proper handling of one’s responsibilities comes into full play.
3. Developing a training program even for professionals asked to handle the post of hiring ought to be pursued so as to equip each hiring staff with the skills they need in seeing beyond the applicants’ obvious characteristics thus allowing them to see through the process of hiring as the basis of the company’s foundation for development and future growth rather than a simple idea of getting people to work.

Conclusion

It is conclusive that committing mistake during hiring process such as discriminating against a person’s race or gender, as well as selecting candidates that prove to be incompetent, or unreliable have negative implications to the reputation of a company. Therefore, organizations must strategize and implement a system that actively targets the right candidates in a small talent pool, which brings new abilities and experiences, as well as can help the organization meet their mission to grow as one unit that is able to face struggles and challenges through the determined strength of the work force and the capacity that each person has to stand for the primary purpose of the organization’s existence in the market for the benefit of the community.

References

Auger, Pat, Timothy M. Devinney, Grahame R. Dowling, Christine Eckert and Nidthida Lin. (2013). How Much Does a Company’s Reputation Matter in Recruiting? MIT

Ababneh, K. I., Hackett, R. D., & Schat, A. C.  (2014). The role of attributions and fairness in understanding job applicant reactions to selection procedures and decisions”. Human Resource Management Journal.

Bressler, Martin. (2014). “Building the winning organization through high-impact hiring”. The American Business Journal.

Falk, S. (2014).  “Challenges in Recruitment and Incentive Management-Empirical Studies on the Effects of Informational Asymmetries, Monetary and Non-Monetary Job Characteristics”.  Human Resource Management Journal.

Gusdoft, Myrna. (2008). “Recruitment and Selection: Hiring the Right Person. Society for Human Resource Management.

Khun (2015).  “Selecting the good vs. rejecting the bad: Regulatory focus effects on staffing decision making”. Human Resource Management Journal.

Levy, Frank, Murnane, Richard. (2004). The New Division of Labor: How Computers Are Creating the Next Job Market. Phoenix Publishing.

Maarten, V. (2006).  “How does Internet recruitment have effect on recruitment performance?” The American Business Journal.

Margaret, A. (2012).  “Recruitment Strategies: Managing/Effecting the Recruitment Process”, The American Business Journal.

Snell, Scott, Bohlander and George. (2013). “Managing Human Resources.”  Jossey Bass Publishing.

Synder, Brett. (2009). “United Aggressively Responds to “United Breaks Guitars Part 2.” CBS.

Wendover . (2007). “Smart hiring: The complete guide to finding and hiring the best employees”.  Jossey Bass Publishing.