GROUP AA1

Recruitment of a Star
Case Analysis

RSH, an investment banking firm is in urgent need to fill its star analysts position,
which has been vacated by Mr. Peter. The companys exit and compensation
policies and training and knowledge sharing strategy needs to be reworked on.

Problem statement
How can RSH fill the vacancy created after RSHs only star semiconductor analyst Peter
Thompsons resignation?

External Analysis
Factors

Factors

Political

Trade
liberalization
in
connection with APAC
Increasing prices of fuel and
commodities
in
the
international market leading
to higher production costs
China experiencing a boom in
its economy
Nationalism could affect
attitudes towards foreign
made products and foreign
owned companies
Unique educational system in
every
country
causing
difficulty in standardizing the
educational
qualification
required for each job
Ease in communication due to
development in Information
Technology
Fast evolving technology in
the mechanical parts industry
demanding employees to stay
regularly updated
The
common
recruiting
system must comply with the
rules and regulations of each
country. For example, in Asia
references indicate only a
candidates previous function
and duration of employment
according
to
common
employment law
Large scale differences in
Oriental and western culture;
for example, the way in which
people respond to the degree
of power distance vary with

Economic

Social

Technological

Cultural

Legal

Impact on the solving the problem

More jobs being opened up; Lesser skilled

workforce available in the market; costlier
workforce

Need to promise the new employees and

existing employees like Rina of a better
career prospects

Increase in demand of skilled workforce

means difficulty in head-hunting

Need to hire employees from local areas

respect to their culture

People are more comfortable
in their vernacular languages
creating a language barrier
among themselves

Internal Analysis
Strength
Diversity in the organization
Decisive leadership

Opportunities
Build a team with sufficient back up
planning
Better economic prospects

Weakness
Cultural conflicts
Lack of trust among employees
Lack of Job security
Managers Inability to understand
cultural nuances
Non-standardized
Dependence on external consulting
firms for conducting individual
assessment tests
Low participation of middle and lower
management in decision making
Threats
Scarcity of human resources
Increased employee retaining costs

Factors in the case

1.
2.
3.
4.
5.
6.

Overdependence on Star employees

Collaborative work culture
Team work
Training and Knowledge sharing policies
Better monitoring of employee compensation
Need for a formal Exit policies

Looking at the above listed factors on which the case revolves around, we can recognize that the
problem of the case is centered upon Employee retaining factors like better training and
knowledge sharing policies, monitoring of employee compensation, and need for formal exit
policies from the company.
3

1. Employee Training: This is a very important factor since this determines the backup and
knowledge sharing across different levels of employees. This also asks for proper
documentation of work processes.
2. Employee Compensation: Had the compensation of Mr. Peter been monitored in a
prudent way, he may not have left the company. This is very important to maintain parity
with the work and benefits that an employee gets
3. Formal Exit policies: Lack of formal exit policies leads to vulnerability of the teams
work processes at times of sudden employee resignation as it happened this case.
Sufficient notice period would help the company to train the juniors or replacements
ahead of a key resource separating from the company.

Constraints

Cost of selection and implementation: has to be low

Time constraint: Rina is relatively inexperienced and cannot handle the team for a
long time.

With these as constraints, the candidate who is going to be the replacement of Mr Peter must
have following skills:

Adaptability
Team working skills
Networking skills
Willingness to travel
Client-oriented
Cost
Industry Knowledge
Good writers

Possible options:
Stephen Connor has got four candidates of whom one can be chosen to fit in Peters position. So
the options available to Connor are choosing one among the four candidates or promote Rina and
train her to take on the responsibility.

Recommendations
In choosing one among the candidates, we found that Seth Horkum is better suited for the post
since he has good networking skills. He is also committed and hard working and has given

brilliant reports in the past. He also seems to have a high client orientation. This would assure the
company to maintain the client trust.
Thinking long term, the company has to come up with a better knowledge sharing mechanisms
and better employee policies. Along with formal exit policies, the company has to choose
between the following options
1. Maintain status quo
2. Establish a knowledge pool through which the company could train other employees
Alternative 2 seems to be a feasible one to go ahead since the company needs to equip itself to
face many employee separation situations in the future. This means the company can establish a
training center inside the company with availability of work related educational resources and
star employees s regular works could be shared by their subordinates. The star analysts and
experts will act as trainers, besides their regular work. Hence, this alternative allows company to
stay in guard of the knowledge bank that is established inside the company.