Wrongful Recruiting Damages Companies 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 is crucial to the success of an organization.

Journal# 2: “Recruitment Strategies: Managing/Effecting the Recruitment Process”, Authored by Margaret, 2012.

In her journal Margaret (2012) state poor recruiting decisions can produce long-term negative effects.

Similarly, bad decisions with recruitment can affect the performance of the organization, and limit achieving their business goals.

Journal #3  “Building the winning organization through high-impact hiring” authored by Bressler, Martin in 2014.

-Martin (2014) 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

Journal #4:  “Selecting the good vs. rejecting the bad: Regulatory focus effects on staffing decision making”. Authoured by Kuhn, 2015

As Kuhn (2014) points out, regulatory focus effects on staffing decision making” 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.

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.

Falk (2014) conveys notes; Human Resources will lose the time in planning, preparing interviews, and selecting, the time in giving orders, advice, and information from the top management.

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.

Ababneh et al. (2008) argues that, the new employee can make numerous mistakes, which lead the company to lose customers, and impede the progress of work.

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. Therefore, hiring new employees should occur only after careful consideration, and only when the organization anticipates a long-term need for additionally labor.

Book #2: “Managing Human Resources.” Author: Snell, Scott, Bohlander and George. date: 2013.

According to Snell and Bohlander (2013), the costs of 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. It is, therefore, essential that hiring manager pay special attention to each stage of recruitment.

Book #4: The New Division of Labor: How Computers Are Creating the Next Job Market. Authors : Levy, Frank, Murnane, Richard.  Date 2004.

Levy and Murnane, (2004) suggests that it is imperative that organizations do not make mistakes in recruiting the wrong candidates that could severely impair the reputation, as well as the 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.

As detailed by CBS News 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. Organizations operate within a landscape that is rife with surmountable threats to their reputations.

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).

Auger, et al, (2013) 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, the researcher will interview hiring manger, consultants and groups of employees and customers.  The data from the interview will be coded and analyzed using SPSS.

Research participants

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

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 statement.

References

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. Journal of Business and Psychology, 29(1), 111-129.

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 Magazine. Retrieved from http://sloanreview.mit.edu/article/how-much-does-a-companys-reputation-matter-in-recruiting/

Falk, S. (2014). Challenges in Recruitment and Incentive Management-Empirical Studies on the Effects of Informational Asymmetries, Monetary and Non-Monetary Job Characteristics (Doctoral dissertation, Universitätsbibliothek der TU München). Retrieved from http://mediatum.ub.tum.de/doc/1207123/file.pdf

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

Kuhn, K. M. (2015). Selecting the good vs. rejecting the bad: Regulatory focus effects on staffing decision making. Human Resource Management, 54(1), 131-150.

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

Margaret, A. R. (2012). Recruitment Strategies: Managing/Effecting the Recruitment Process. UN. Retrieved from http://unpan1.un.org/intradoc/groups/public/documents/un/unpan021814.pdf

Snell, Scott, Bohlander, George. (2013). Managing Human Resources. 16^th Edition. Cengage Learning. Ohio.

Synder, Brett. (2009). United Aggressively Responds to “United Breaks Guitars Part 2”. CBS News. Retrieved from http://www.cbsnews.com/news/united-aggressively-responds-to-united-breaks-guitars-part-2/

Travis, Michael. (2015). Mastering the Art of Recruiting: How to Hire the Right Candidate for the Job. ABC-CLIO. California.

Veger, Maarten. (2006). How does Internet recruitment have effect on recruitment performance? PSU. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.65.3278&rep=rep1&type=pdf

Wendover, R. W. (2007). Smart hiring: The complete guide to finding and hiring the best employees. Naperville, Ill: Sourcebooks.