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Final Report

Submitted to:
Sir Nasir Mehmood
Submitted by:
Zehra Hussain
Arsalan Zaidi
Faiza Mubeen
MBA 4
Dated: 20th May 2015

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Acknowledgements
When I started writing, I stopped for a while and thought what to write?
How to write? I had no words to express our thoughts and feelings. But I
had to write to offer the humblebees sense to ALL MIGHTY ALLAH
The most beneficial, gracious and merciful who enabled me to perceive
higher ideas of life and helped us throughout our lives especially in
writing this report and all blessings to His favorite PROPHET
MUHAMMAD (PBUH) who is the greatest personality of this universe.
After God I owe my heartiest gratitude to my parents and my family
whose prayers encouraged us to complete this task. We would like to
thank the staff at Bahria University for their help and time.
We are also extremely thankful to our teacher Sir Nasir Mehmood for
his reward less help, precious suggestions, constant encouragement and
guideline that enabled us to write this report.

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Table of Contents
Executive summary.........................................................................................3
What is Recruitment & Selection?....................................................................4
What are BEST R&S Practices?..................................................................4
Importance best R&S practices in success of a company.....................5
Procter & Gamble .........................................Error! Bookmark not defined.
Purpose.......................................................Error! Bookmark not defined.
R & S..............................................................Error! Bookmark not defined.
McKinsey & Company....................................Error! Bookmark not defined.
Zappos ..........................................................Error! Bookmark not defined.
Vision..........................................................Error! Bookmark not defined.
R and S..........................................................Error! Bookmark not defined.

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Executive summary
In our final report, we have taken three of the fortune 500 companies of the
world to see the recruitment and selection processes and the uniqueness in
them which makes them successful and profitable. We plan to compare and
contrast the major differences between the recruitment selection processes
of these companies and to find the uniqueness in their recruitment and
selection processes. The report will start with explaining the importance of
recruitment and selection, followed by effective recruitment selection
policies and then it will introduce the three companies we have selected and
their recruitment processes. An analysis of the R&S Process of these Fortune
500 Companies will be done in order to identify how these companies act
while hunting for top candidates.

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What is Recruitment & Selection?
Recruitment is the process of identifying that the organization needs
to employ someone up to the point at which application forms for the post
have arrived at the organization. Selection then consists of the processes
involved in choosing from applicants a suitable candidate to fill a post. The
organization makes vacancies known to a larger number of people to
organization through advertisement and publicity and make larger number of
people to apply is called recruitment. In human resource management R&S
play an important role in different activities these are acquisition,
development, rewards of workers. Recruitment is a process that generates
pool of capable people who apply for employment to an organization.
Selection is use by which manager use specific instruments and select from
the pool of candidate who best fit in the organization.
What are BEST R&S Practices?
As each and every organization wants that they have talented
workforce for that organization use different methods and practices. In R&S
methods organization get the candidate by the recommendation of old
employees they suggest a person for the required job this method is fast and
efficient as there is less consumption of time in that. Second method is by
word of mouth this is also fast and eliminates the time consumption in
search of candidates. But these limits the scope of search may be
organization not get the qualified candidate. Another method by which
organization get the pool of candidate is by advertising the job by that
organization get the large pool of candidate and select the best one who
meet the requirement of job. This method creates an opportunity to attract
highly qualified candidates. These are the methods by which organization
can get the pool of candidates.
In R&s process first of all establish a vacancy for which organization
need the people. And then get the approval of this vacancy from staffing
people. Next step is filling the vacancy and in that the recruiter formulate a
job description & job specification for required job this include the duties,
responsibilities working condition and KSAOs. And after designing that
organization give ad for the job on different places on newspapers, internet,
websites, Tv etc this depend on the requirements of job and on the basis of
that organization select these ways of advertising the job. After that when
organization gets the applications then it starts taking interviews and by that
it selects the pool of candidates. And shortlist the candidates that it found
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best for the required job. Those who are rejected recruiters provide them
positive feedback that gives a positive image about the organization. And
then it finds out the best candidate who matches the requirement of job.
Importance of best R&S practices in success of a company
According to Cable and Judge (1997), employee selection process
should also consider improving congruent between employee values and
corporate culture. The reason companies invest so heavily in their R&S
processes is that they want to find the right person at the right time.
R&S is important because it play an important role in the organization
effectiveness and improving its performance. Because if organization acquire
a person who have specific skills, knowledge and abililities that are required
by the organization this will be beneficial for the effectiveness of
organization. Another reason of R&S importance is that now organization
regards their work force as there competitive advantage as having a talented
and skilled workforce is a competitive advantage for any organization.
Effective R&S is very important because as having a good workforce is
a competitive advantage for any organization and getting the right person
for the right job is very difficult for that larger organization follow the proper
process and do selection test and on the basis of the results finally
organization select the best candidate. In the area of organization fit
(employee personal value match), organization culture plays an important
role in employee retention, (Irhad, 2011). And when they recruit the right
person who match the requirements of organization and fit in the culture of
that will be in best interest of organization both for shorter period and for a
longer period and this also help the organization to achieve its desired goals.

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The Link between Employer Practices and Employee Engagement

According to the SHRM Foundations Effective Practices Guidelines


(Vance, 7 13), the employer practices have an impact upon the overall
business results through employee engagement and performance (Figure
1.1). The employer practices have further been broken down into the
following categories:

Job and task design

Recruitment & Selection


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Training
Compensation
Performance Management
Career Development

Furthermore, an article published in the Harvard Business Review states


the importance of the Links in the Service-Profit Chain (Heskett, Jones,
Loveman, Sasser & Schlesinger, 2008). The Article emphasizes upon the
aspects of a business that earn profits for a company; and one of the initial
parts of the process is employee selection & development. (Figure 1.2). In
addition, the article sites an example of Southwest Airlines. The company
regularly invites frequent fliers to participate in the auditioning and selection
of cabin attendants. This investment shows the importance that companies
place upon the R&S Process.

Figure 1.2: Links in the Service-Profit Chain.

Research Methodology & Approach:


Remaining within the scope of this research, the researchers have used
the factor of Recruitment & Selection and linked it with the overall business
results. The business results, in order to have quantified data, have been
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considered as Profits after Tax (PAT). The quantified business results would
allow the researchers to find out the PAT per Employee of each of the
companies chosen. This would assist the researchers to argue that better
R&S practices result in higher PAT per Employee.
The researchers intend to do a thorough analysis of the R&S Practices
of 3 companies who have been in the Fortune 500, namely: Proctor &
Gamble, McKinsey & Company and Zappos, Inc. The R&S Practices of
these companies would then be compared to 3 companies from Pakistan
namely: Pakistan Tobacco Company, Ufone and Zong.
After comparing the R&S Processes of these companies, the researchers
intend to argue, through a comparison of the PAT per Employee of these
companies, that effective R&S Practices is one of the tools that companies
use in order to drive business results. Following is the step-wise process of
the research:
1.
2.
3.
4.
5.

Analysis of the R&S Process of each of the chosen companies


Identification of unique aspects in the R&S Process (if any)
Identification of focal points within the R&S Process of each company
Calculation of Profit after Tax per employee (PAT) of each company
Cross comparison and analysis of PAT, focal points and unique
aspects of the R&S Processes

I. Companies R&S Strategies And Processes


1. Ufone:
Pak
Telecom
Mobile
Limited or Ufone is
a
Pakistani GSM cellular service provider. It was the third mobile operator to

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enter Pakistani market. It started its operations, under the brand name of
Ufone, in Islamabad on January 29, 2001.
PTML is the wholly owned subsidiary of Pakistan Telecommunication
Company Limited. Following PTCL's privatization, Ufone became a part of
the Etisalat in 2006.
Ufone is among the largest GSM mobile service provider and fourth
largest mobile service in terms of subscriber base of over 24 million. [4] It has
a market share of 18% among mobile operators.
1.1.

Recruitment strategy

Ufone believes in hiring internally , it gives preference to its internal


employees, if no one is able to fit into that position only then external hiring
is done. While doing external hiring, fresh graduates is considered as they
bring in new ideas for the company.
Ufone does not have a formal recruitment drive that it focuses upon but
instead, it uses linkedin, Career Pages and Rozee.pk integration in order
to advertise a position and receive applications. On top of that, Ufone solely
focuses upon its Summer Internship Program and maintains its candidate
database through this program. Employee referrals are also used in order to
acquire good candidates that might be considered for a position.
Furthermore, university Career Offices are kept updated regarding the vacant
positions so as to generate a number of candidates from there as well.
1.1.1.

Summer Internship Program:

Ufone focuses upon the Summer Internship Program a lot in order to


develop a talent pool for future reference. The company believes that by
offering learning opportunities to the graduates-to-be and letting them have
a look at the Ufone culture, the company can generate a positive outlook in
the students mind which would help them achieve their talent goals for the
future.
Ufone has been trying to make the process for recruiting interns tougher
in the recent past so as to ensure that only quality candidates have an
opportunity for a summer internship. The quality focus allows Ufone to test
the abilities of the interns and, if need be, hire the best ones out of those in
case a position is vacant.
1.2. Selection Strategy:

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The selection process, after receiving CVs and applications through Careers
Page, Linkedin, Rozee.pk or employee referrals, is quite a simple one and
the steps are briefly described below.
1.2.1.

Technical Tests:

Tests are only applicable to those candidates that are applying for
technical positions; for positions other than technical, only interviews are
conducted after the initial screening of CVs.
1.2.2.

Line Interviews:

The first round of interviews is conducted by the line managers. The


shortlisted candidates are provided by the HR Department after which line
managers conduct interviews related to the vacant position. The line
manager then shortlists some candidates and sends them back to the HR
Department.
1.2.3.

Panel Interviews:

The panel for this round of interviews consists of an HR Person, the Line
Manager and another independent evaluator. This independent evaluator
helps out if there is an argument that the HR and Line manager cannot
resolve regarding a candidate.
The evaluation forms that are to be filled out by the panel are based upon
the competency-based evaluation. The competencies of the candidate are
rated against the competencies that are required in order to perform a
particular job.
The STAR technique for interviews is often deployed by the interviewers
at Ufone.

Situation: set the context for the story


Task: what was required of you?
Activity: what you actually did
Result: how well the situation played out.

Operation Portal:
In order to make the process faster and more efficient, Ufone has
deployed an online intranet portal that follows the path of a particular hiring
request. This keeps a check upon which of the employees in the decisionmaking process is taking more time than usual in order to make a decision
upon a particular hire. It allows the HR Department to make the decisionmaking process of hiring a candidate more efficient.

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Overall Picture of the Ufone Process:


Drawback:

Linkedin/Career
Pages/Rozee.pk
Pages/Rozee.pk
Advertisement

First
Interview
First Interview
Round (Line
Manager)
Manager)

Online
Online
Applications
Applications
received
(Summer
(Summer
Internship
Program
Program Talent
Talent
Pool
used)
Pool used)

Screening
Screening of
of CVs
CVs

2nd
Round of
2nd Round
of
Interviews (Panel
Interview)
Interview)

CompetencyCompetencybased
based Decision
Decision
Making / Final
Offer
after
Offer after
negotiations
negotiations

Tests (only for


Technical
Technical
Positions)

The biggest drawback in the R&S Process at Ufone that was identified
and accepted by the HR Point of Contact as well was that there was no
formal orientation session of the new hires. Although the employees were
kind enough to introduce the team of the new hire, yet lack of presence of a
formal process shows that Ufone, as a company, is least bothered about how
the person would fit into the culture of the organization; various researches
prove how detrimental that could be for the overall health of the
organization.
2. ZONG:
Zong allows and enables its users to avail the best possible Mobile Internet
bundles that are not offered anywhere else in the country making the
experience, truly a unique one. The basic idea is to allow people to
communicate at their free will, making it a stress free environment with no
worries about Tariffs, Capacity Issues or Congestion, be it Network Coverage
or Quality, it is all sorted since Zong is supported by ground breaking
communications.

Vision
Become an indispensable digital life
partner
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Mission
To lead the future innovatively through:
- Customer Centricity
- Boundary less Team
- Organizational Agility
Core Values

Integrity & Accountability

Openness

Perseverance

Passion

Efficient Execution

2.1. Recruitment Strategy:


Zong believes in hiring internally and it gives full preference to internal
candidates as they are aware of zong culture. The external employees are
only hired on a need basis. Zong has a graduate trainee program and
campus drives in which it hire and trains new talent.

2.1.1.
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Campus Drives

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Zong hunts new talent through the campus drives they visit the campuses of
universities then interview candidates and counsel them on their weaknesses
and give them trainings and keep a list of Cvs of the talented People and
enter them to their database, they create a pool of candidates and then hire
them when they are needed.
2.1.2.

Career at Zong

Zong has an online portal where it keeps the records of the potential
candidates and when a post is open hiring is done through the process.
Everything at Zong is done through the computerized HRIS system and it is
recorded and documented and SOPs are followed.
2.2. Selection Strategy:
Zong tries its best to spend time in selecting the right person for the
job .Candidate is selected based on a combination, his test results and his
interview results, if the candidate performs well in both he/ she is hired.
2.2.1.

HRIS at Zong

Zong uses the HRIS system computer software based recruitments.


Employee request form is filled by the employee who needs to hire someone
he enters his request into the system. The job post is searched in software if
its existing then they see if the post is available already and who was last
employee working there and what job description Is there. If the job is new
and the post is created on a need basis then a jd is made based on the job
requirements , approval is taken from management then the post is
announced on the website for external candidates and for internal email is
sent to them. After the initial screening ,interview calls are made ajd the
profiles cv of candidates are added to system and shortlisting details entered
and then approval done then hiring is done.
2.2.2.

Screening of Candidates:

Zong carries out the screening of the candidates through the software.
The filter finds the right Cvs, people who had the same Keywords were
entered in the filter of search. Through the tests carried out at the
assessment centers the candidates are screened out. The rest are requested
to come to interview. Final screening is done based on the interview results.
A technical tests then followed by first interview & Panel interview All posts
below assistant a Test is taken which is competency based.
2.2.3.

Selection Tests

Zong starts the process with a test for the technical post. The engineering
jobs have the engineering related test, mangament employees have the
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management related tests .Moreover The test depends on the job post a
candidate applies for it has three main domains
Business
Technical
IT
2.2.4. Interviews
Structured interview is taken at Zong to make sure all the questions are
covered and to get overview of the job contents. Unstructured questions
were also asked the questions werent asked in a specific formation and the
probing questions also asked when required. There are three interviews done
at Zong:

1st Interview with the Line Manger ( telephonic mostly)


2nd interview with the HR Manager and panel
3rd interview with Panel and Directors( Top Management)

Behavioral training is provided to the employees in the interview panel and


they basically test two kinds of things in the candidates functional &
behavioral skills and such questions are asked to make sure the employee
with right attitude should be hired.
Decision making
Decision Making is fast and is done collaboratively with the Based on
Mutual collaboration of the panel sitting in the interview. Moreover, the
evaluation forms assessment marks are checked for taking the right
decision.
Modes of recruitment
Internally email to internal employees are sent when a job post is vacant.

Response application Portals

External through the:

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Website (career Portal)


Facebook
Rozee.pk

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Overall Picture of the ZONG Process:

Campus Drives
& career Portal

Screening of
CVs / Profiles
First Filter: Tests
2nd Filter: CVs

Screening of
candidates

First Interview
Second
interview
(HR AND PANEL)

Assesment
centers
(Below AM nd
Top
Management)

FInal Interview
(PANEL & TOP
MANAGEMENT)

Online
Assessment
Tests -

Competency based
Descriptive
Reasoning
(Cognitive)

Candidate hired
(ORIENTATION
FOR ONE DAY)

3. P&G
Procter
&
Gamble
Co.,
also
known
as P&G,
is
an
American multinational consumer
goods company
headquartered
in downtown Cincinnati, Ohio, United States, founded by William
Procter and James Gamble, both from the United Kingdom. Its products
include pet foods, cleaning agents, and personal care products. P&G has over
a 100,000 employees.
Purpose
To provide branded products and services of superior quality and value that
improve the lives of the worlds consumers, now and for generations to
come. As a result, consumers will reward us with leadership sales, profit and
value creation, allowing our people, our shareholders and the communities in
which we live and work to prosper.
3.1. Recruitment Strategy:
Instead of traditional forms of Recruitment Strategies, like most of the other
big companies in the world, the primary medium of Talent Attraction that
P&G relies upon is its strong Employer Brand. The first question that P&G
Recruiters think of is: what do we have to offer? And they have a very
simple and specific answer to that question that has been addressed on the
front page of their Career Page (see figure on next page).
Employer Branding:

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Talented, passionate caring and innovative. These are the people of P&G.
Our People
We believe in igniting your potential. Supporting your success. And
celebrating the individual. what we have to offer.
We hire the PERSON, not the position. Respect for persons
attributes.
3.1.1.

Campus Drives

P&G shortlists some universities based upon past experience of candidate


quality and visits the campuses in order to maintain its strong Employer
Brand. But, how does the company know what to communicate? Surveys!
P&G remains in touch with the Universities that conduct various surveys
which provides them with valuable insight regarding how the students like to
be communicated at present. P&Gs various departments present what they
do and how they work to the students so as to make sure that students of all
fields are covered during the drive.
Decisions like who will present and what language would be used are
all pre-decided by the HR Department so that the Employer Brand is
conveyed to the potential candidates very precisely. Alumni of a particular
university are preferred to make sure that the students can create an instant
link with the presenter.
There are two major hooks that P&G takes to these campus drives:
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a. Entry level positions
b. Internships (P&G does prefer to call upon candidates who have already
interned at P&G before; the research would not go into detail of that
particular process as it would direct it slightly off scope)
3.1.2. Route to Career Page
One of the goals of the Campus Drives is to route the students towards
the Career Page. There, too, the Employer Branding has been fully taken care
of. But additionally, the following tasks take place:
a. CV Creation
b. Online Tests (Descriptive & Cognitive)
c. Reasoning Test (in-Person) The reasoning test can be used as a part
of the final interview but in this case, it is sent to the respective
campus. This is called the paper-and-pencil Reasoning Test.
3.2. Selection Strategy:
There is a unique way in which P&G selects and hires its candidates and it
is a very thorough process through which the decision-making is done that
will be discussed later.
3.2.1.

Screening of Candidates:

While screening various applications of the candidates, P&G uses two


tool namely a) CVs and b) Tests. In the Tests portion, there is an absolute
marking system for each university. This means that P&G can put a cutoff
point depending upon their requirement at the moment for each university.
For instance, the cutoff points below which candidates will not be shortlisted
for LUMS maybe 70 marks out of 100; but the same for IBA maybe 80 out of
100. This is highly dependent upon the fact that what sort of candidates is
P&G looking for from that particular institute. If there is a high requirement of
very high potential students and P&G does not want to create a very large
talent pool to choose from, then the benchmark would be kept high so that
only the very best candidates would be shortlisted.
Why the above strategy of absolute marking for tests works is that it
provides P&G complete control over their talent pool creation. Furthermore,
P&G screens 90 95% of the candidates through these tests which means
they rely upon this a lot.
One of the top qualities that P&G wants in its candidates is the
Leadership Skills. The tests, especially the descriptive tests, are designed
in such a way so as to measure the Leadership Skills of a candidate through
various situational questions.
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3.2.2.

First Round of Interviews:

Generally, the first round of interviews is held within the Campus. After
the first round of Employer Branding is complete, a team from P&G travels
again to the campuses to hold the first round of interviews. These interviews
mostly last for 15 minutes and 2 major types of questions are asked:
a) Targeted (e.g. Leadership, problem solving etc.)
b) Behavioral (mostly situational; examples from real life situations)
Generally, these first round of interviews consist of a panel of
interviewers; either 2 or 3. These interviewers rate each of the KSAOs
required from a rating scale of 1 to 5; this scale remains consistent
throughout the process.
3.2.3.

Comprehensive Interview Rounds:

The comprehensive interview round generally lasts for 45 minutes to 1


hour; although this time scale and increase or decrease as well. The whole
point is, that the interviewer has to be completed convinced about a
candidate before moving on.
The interviewers look for 9 qualities in a particular candidate that are
in alignment with their technical and cultural needs. Leadership is one of the
major qualities. These qualities are rated on a scale from 1 to 5.
Usually, the list of questions is structured but the interviewer can
probe further into a particular topic if he or she is not fully convinced. This
particular part of the interview process, where the interviewer has to be fully
convinced can sometimes drag the interview on to as long as 2 hours.
The same process that has been mentioned above is conducted by 2
other people and what happens after that is particularly unique in terms of
developing a credibility of a candidate; P&G makes sure that the interviewers
are absolutely sure regarding a candidate before they hire him/her.
Debriefing:
After the extensive process of interviewing comes to an end, the
process does not end there. The 3 people who interviewed the same person
sit in a room with one of the HR Personnel and they discuss various pros and
cons of a particular candidate. Candidate A, for example is up for debate
first. The 3 people/teams who conducted the interviews of Candidate A will
scrutinize every single point of the candidate in front of the HR Person.
There is no democracy here. If 2 interviewers/teams are convinced
about Candidate A, but 1 interviewer/team is not fully convinced, the job of
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the 2 interviewers is to convince the 1 interviewer regarding candidate A.
This can be a time consuming activity but according to the HR at P&G, this
ensures the quality of the hire and helps in hiring the right person the first
time.
After the debriefing session is over, which could go well over a couple
of hours of debate between the interviewers, the HR person is asked to hire
the particular individual and an offer letter is published to the one hired, and
rejection letters (through e-mail) to people who could not make it through.
Overall Picture of the P&G Process:
4. McKinsey & Company:

Campus Drives Employe Brand


Presence

Route to Career
Page
Employer Brand

Online
Assessment Tests
CV Creation

Departmental Sessions
Employer Brand
Proposition

Screening of
CVs / Profiles

First Interview
Round

Comprehensive
Interview Rounds

First Filter: Tests


2nd Filter: CVs

Mostly on Campus
15 Mins Max

45 mins to 1 hour 3
different people
Structured or
Unstructured

Descriptive
Reasoning (Cognitive)

Debriefing
Session &
Decision upon
Hire

McKinsey & Company is a global management consulting firm that serves


leading businesses, governments, non-governmental organizations, and notfor-profits. The company helps its clients make lasting improvements to their
performance and realize their most important goals.
McKinsey & Co. serves clients at every level of their organization, in
whatever capacity it can be most useful, whether as a trusted advisor to top
management or as a hands-on coach for front line employees. For every
engagement, it assembles a team with the most appropriate experience and
expertise. The company has around 10,000 employees operating globally in
various locations.
4.1. Recruitment Strategy:
The recruitment strategy at McKinsey and Company is a bit different. They
are a brand name around the world and they do not reemphasize that.
Instead, they let the candidates reach out to the company. This gives
them the edge that only those candidates would be in the talent pool who
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really want to work in a company like McKinsey & Co. Hence, there are no
employer brand promotion campaigns; 90% of the hiring is done from the
campuses, but then again, the way they recruit and select people is quite
different.
So, they market their jobs on the Career Page and Social Media and thats
pretty much about it. This is a part of their strategy, so that they only create
a talent pool out of those candidates who are really inspired to work at
McKinsey & Co.
4.2. Selection Strategy:
The first stage of screening starts once the CVs are received for a
particular position. Once the CVs are shortlisted, what happens next is what
makes the Selection process at McKinsey & Co. unique. The first stage of
screening a CV is: whether the candidate who has applied belongs
to the target university or not. If not, the CV is not considered at all.
Phases of screening:
a) Whether you are from the Target University
b) Did you make an effort to meet them (e.g. online applications etc.)
c) The CV it has to match attribute and behaviors they are looking for
and should be very precise. They believe in the fact that the CV tells
your whole story.
4.2.1. Campus Presence Initial Touch Point:
After the first round of screening, McKinsey & Co. send some of their
employees to the target universities. They remain there for at least 3
months, on and off; the reasons for which are discussed below. The concept
of very limited target universities can be attributed to the fact that they only
have around 10,000 employees world-wide and do not have the same
employee demands, in terms of quantity, as compared to P&G that has an
employee base of over a 100,000 employees.
McKinsey & Co. has some allocated resources who have their jobs to
remain within the campuses. Once the CVs have been shortlisted, following
is what happens:

20

Some of the employees remain within the Target University


Campuses
They contact the shortlisted CV pool people and have very casual
initial meetings with them.
These meetings could be at least 4 or 5 in number
Generally these casual meetings are conducted over a cup of
coffee, lunch etc.

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Through these meeting cum interviews, the McKinsey people are
allowed to identify the behaviors of the candidates they are considering. This
is the first touch point with the candidates and in a very mild manner, they
keep identifying various behavioral traits of the candidates. These casual
meetings / interviews are the reason that the company has a very limited
target universities where they hire from.
This process allows the employees stationed in the universities to
further shortlist the candidates that are supposed to be called for the next
stage in the process i.e. Problem-Solving Tests.
4.2.2.

Problem-Solving Tests:

The shortlisted candidates from the Campuses are called on for a problemsolving test. This is typically a very hard test to pass and very few people
make it to the interviews round.
4.2.3.

Interviews - Level 1:

The shortlisted candidates from the tests are then called up for an
interview with McKinsey & Co. The interview at this level (Level 1) includes of
the following components:
a) Business Case real life business case solution
b) Behavioral interviews
The Business Case allows the recruiters to identify the skill of a
particular person in order to solve problems relating to a real life
organization; they believe in this particular formula because this is exactly
what the employees at McKinsey & Co. do. They provide business solutions.
The time frame for the Business Case portion ranges from 30 to 60 minutes
and only the individual solves this case; there are no teams.
The Behavioral Interviews, just like at P&G, involve questions that look
to align the behavioral traits of the individual with the culture at McKinsey &
Co. Just like P&G, they are very careful while selecting a person and they
consider not only the technical skills of the person, but also the cultural
alignment. This allows these big companies to keep their employee turnover
as low as possible.
4.2.4.

Interviews - Level 2:

More of the same that happened in the last step happens here. The
candidates are provided with Business Cases and Behavioral Interviews are
held; but especially the business cases at this stage are more difficult.

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The Level 2 interviews are conducted by another team of Recruiters
who provide their report regarding the individual in the end.

Debriefing:
After the overall process has been completed, the same team that
started off the recruitment process in the campuses, sits together with the
team that conducted the Level 2 interviews and business cases. They debrief
each other regarding the pros and cons of the individual in the presence of
an HR person, argue the case for each candidate and then make the
decision.
The amount of time that it takes for McKinsey & Co. to hire a particular
person may take more than 2 or 3 months. The reason that was provided
for that huge amount of time was that McKinsey and Co. is very selective
about whom they hire and that is why they have such a rigorous R&S
process. They may select only 1 person from the shortlisted 500 or 600. So,
they keep the process as tough as possible.
Overall Picture of the Process:

Online Presence
(Social Media &
Career Page)

Receive
Applications

Campus Presence
- Interviews of
shortlisted CVs
on Campuses

Interviews - Level
1

Interviews - Level
2

Debriefing
Session

Problem-solving
Tests

5. Zappos:
Zappos.com was established in 1999 to offer the best possible online
shopping experience for footwear. Over the years, the selection has grown to
include not only footwear but clothing, accessories, housewares, and more.
Named a J.D. Power 2011 Customer Service Champion, rated ELITE by
STELLA Service, and recognized as one of FORTUNEs 100 Best Companies to
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Work For 6 years in a row since 2009, Zappos.com continues to strive for
excellence in customer service.

5.1. Recruitment Strategy:


At Zappos, there are two main strategies that are at play for the
Recruitment Strategy: a) they mostly prefer to hire from within internal
rotations and promotions; and b) They use social media extensively to
promote their work culture. Culture is the cue they send out to people
through various blogs and social media accounts. The Recruiters are
actively visible on the social media site like Twitter and Facebook trying to
engage as many candidates as possible to know more about Zappos.
According to them, whenever theyve tried to source externally, especially
for C-Level positions, they have not been as successful as the internal
sourcing. Basically, Zappos wants to make connections where
connections werent previously made.
The core recruitment strategy at Zappos is through Internal Sourcing. At
the same time, Zappos, through the social media, keeps on creating their
own database as well; their target is to have their own huge candidate talent
pool where to choose from in the future.
The reason that Zappos wants to have their own Talent Pool database is
that some of the positions are harder to fill internally for which they have to
actively go on the lookout for the right people. They post the jobs on their
Careers Page and Social media for that purpose. High engagement plus real
time interactions with Zappos employees automatically attracts talent.
New concepts and their application in the culture, e.g. Halocracy, are well
promoted and work as an attraction to the talent. Halocracy is an
organizational methodology where each and every individual has say in what
is to be done and what roles are to be assigned. It works by distributing
power towards various people rather than the old Top-down approach.
Research shows that every time the size of a city doubles, innovation or
productivity per resident increases by 15 percent. But when companies get
bigger, innovation or productivity per employee generally goes down. So
we're trying to figure out how to structure Zappos more like a city, and less
like a bureaucratic corporation. In a city, people and businesses are selforganizing. We're trying to do the same thing by switching from a normal
hierarchical structure to a system called Holacracy, which enables
employees to act more like entrepreneurs and self-direct their work
instead of reporting to a manager who tells them what to do.
Tony Hsieh CEO Zappos (See Appendix for Figure)
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5.2. Selection Strategy
Zappos believes in a very engaging culture so they always tend to come
up with new ideas in order to select potential candidates. One of the ways
they have devised is the Zappos Insider. This is simply a program for the
people who might want to working for Zappos one day. It engages the
candidates to create online profiles and interact with the employees,
Zappos Ambassadors, who are constantly active on the social media and
blogs. Following are some of the guidelines provided, that promote an
engaging procedure of shortlisting for various jobs. (taken directly from the
Zappos Website):
There are a number of ways to stay in touch, help us get to know you and
get to know us better too!
1. If you havent already done so, be sure to create a video cover
letter (or some other creative way to show us your true colors, your
real personality and who you are as an individual). When company
culture is as much of a priority as it is for Zappos, these pieces of the
equation are SO important and you will definitely stand out if you give
us a chance to know you beyond the written words on your resume!
(Zappos core value #4: Be Adventurous, Creative and Open-Minded.)
2. Every single one of our recruiters is active on Twitter, talking to fans
and Insiders every single day. If youre on Twitter, be sure to follow our
recruitersand join in the conversation! Hundreds of other Zappos
employees are on there too! If youre not on Twitter, maybe nows the
perfect time to give it a shot! After all, Embrace and Drive Change is
another Zappos core value!
3. Speaking of Twitter, be sure to join our biweekly #InsideZappos
Tweetchats on Thursdays at 1pm ET / 10am PT. Its a great way to meet
tons of Zappos employees around the company (not just recruiters)
and gain insights and personal impressions about life at Zappos. You
can ask questions, chime in, share your thoughts, etc. Its super fun
and the 30 minutes just speed by!
4. If Twitters just not your thing, youll be happy to hear that were also
on Facebook, Instagram and Pinterest and we love hearing from our
fans, current employees and future employees! Pop by to say hi, tell us
what you think about one of our updates on company culture, life at
Zappos, our people, our events, our customer service, the way we do
business. Its a great way to stay in touch and also to stand out.
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5. Google Hangouts are coming! We will soon be launching Google
Hangouts (think video conference calls) where potential employees can
hang out (no pun intended) with recruiters and other Zappos
employees, ask questions, get to know us, let us get to know you, etc.
Therere going to be TONS of fun and we cant wait to get started!
6. As always, feel free to reach out to your team ambassador anytime if
you have any questions. Thats why were here! (Before reaching out,
maybe get to know your ambassador better by reading his/her blog
posts!)

5.2.1.

Webcam Interview:

In order to promote their different and engaging culture, whenever the


number of applicants for a position is high, Zappos came up with the idea of
asking the potential candidates to answer a few simple questions and
introduce themselves in a Webcam Recorder interview. This allows the
recruiters to view the messages whenever they want and helps them see
various aspects of a persons personality e.g. communication skills, without
the fuss of having the person actually come over. It is more like a video CV of
an applicant where Zappos asks the candidates to come up with creative
ways to demonstrate or communicate what they want to.
5.2.2.

Interviews by SMEs:

After shortlisting the potential candidates through Webcam Interviews


and having a go at their online profiles on the social media and Insider
Program, the shortlisted candidates are then called up for an interview to
the Zappos office for a second interview with the SMEs mostly the people
working in the particular department where the job opening is. The questions
are mostly pertaining to the subject area.
5.2.3.

Interviews by Teams:

The second round of interviews is held with the particular team in


which the person might be working in the future. This is more of a
socialization interview process where the team members try to identify
and see if the person would be a good fit within the team or not.
5.2.4.

Interviews by Recruiters:

These interviews are mostly related to the behaviors of the candidate.


The recruiter asks 15 to 20 questions trying to analyze the behavior of the
candidate. Situational questions here are a norm and are definitely related to
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customer experience. As Zappos prides itself in the customer experience, so
they want employees are customer-centric as well.
At the same time, during all these interviews, all the interviewers try to
guage the level of creativity and try to identify if the person is trying to be
himself. That is done through questions like what is your favorite swear word.
If a person has to think a lot, then he or she is not being himself and trying to
hide his/her true self. Zappos is very careful about this fact as they really
value people who act as themselves and accept others as they are as well.
5.2.5.

Decision:

In the end, the recruiter gathers all the information and makes the final
decision upon a hire. In case there is a tie between two or three candidates
and they cannot decide, then they provide the candidates with e.g. a
marketing plan for a marketing position; they would make the final decision
based upon the quality of the marketing plan then.
5.3. Socialization / Orientation:
Zappos has an extensive orientation program of 4 weeks for the new
hires. 2 weeks out of this time period are spent trying to gel the person
within the culture where they involved various sessions with the team e.g.
lunches etc. Zappos does not want only observers of culture but they want
people to make the culture even stronger, so they introduce the new hire to
all that is happening currently at Zappos.
The other half of the Orientation is regarding technical aspects of
Customer Service for each and every employee. Zappos believes that
Customer Service is everyones core job; whether youre in HR, Marketing or
IT.
Drawbacks/Shortcomings/Challenges:
The major shortcomings identified by Zappos were as follows:
a) At the launch of the Zappos Insider Program, the company had
decided not to post jobs at all and just search through candidates
through the Insider Program. This turned out to be a failure as they,
then, could not particularly match which CV to match to which
particular opening. People could actually not apply anywhere, so they
had to restart posting the jobs on the Careers Page.
b) The Turnover Rate at Zappos currently stands at around 19% which
they intend to bring down to around 16% because of the fact that they
have had considerable success at sourcing from within, so they tend to

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work hard upon their retention plans; and it all starts from hiring the
person who fits into the culture well.
c) Although Zappos is doing well through Social Media in order to hire the
right people, they are also planning to focus some energy by branding
them in the Campus Drives as well so as to leave no stone unturned to
hire the right talent.

Overall Picture of the R&S Process at Zappos:

II.

ANALYSIS
1. P&G:

Blogs & Social


Media
Attraction

27

Interview by
Concerned
Teams

OF

R&S PROCESSES A COMPARISON

Zappos Insider
Program to
Applications

Webcam Initial
Interviews

Interview by
Recruiters Culture Fit

Final Decision
by the
Recruiters

Interviews by
SMEs

Hunt for the Perfect Doodh Patti


As discussed in the preceding text, the researchers were able to find
out that P&G puts in a lot of the energy and focus, more than during other
processes, at the latter stage of the R&S Process. This has been highlighted
in the image below where it is clear to see that when the process enters into
the ending stages of the R&S process, the time consumed and effort
invested (verticality) increases as well. (Verticality and color showing
more time and effort consumed respectively).

The researchers believe that this can be related to the fact that P&G is
a company with more than 100,000 employees world-wide and require to
have a bigger talent pool as compared to other companies under
consideration. This is why P&G allows as many applications to come in as

possible but still, a filter is applied which is demonstrated in the fact that
only select target universities are chosen for their employer branding
campaigns. But unlike McKinsey & Co. target university is not the criteria for
shortlisting candidates.
The more focus and energy is vested in the Comprehensive interview
rounds upon the shortlisted candidates. This is where the recruiters at P&G
dissect every single detail of the individual. As per all other most of the other
big companies, P&G also gauges the candidates based upon technical skills
and the cultural fit. The unique aspect of the P&Gs Selection process is their
debriefing process which has been discussed in a bit more detail in the
preceding section.
2. McKinsey & Co.:
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McKinsey & Co. puts in a lot of effort and energy during the initial stages
of their selection process. They do not indulge a lot in the recruitment
practices but are rather very selective even about the people who they want
to speak with in the first place.
The company does invest a lot of time and energy once the CV has been
shortlisted though. This is done through the unique procedure of having
some of the recruiters on campus and have initial touch point meetings
through casual interviews at lunch or coffee; they prefer to shortlist as much
as possible before they even take a person through to a test. The reasons for
this particular behavior have been highlighted in the preceding section.
Once a lot of time and energy has been spent at the campuses, the next

phase that starts to receive high level of attention is the last two parts of the
processes: Interviews level 1 and 2, and the debriefing process (just like at
P&G). Hence, McKinsey & Co. distributes its energies and time spent across
the R&S Process. This helps them to narrow down their talent pool as much
as possible before anyone appears for tests and interviews.

3. Zappos, Inc.:
Zappos is has a high propensity to engage their potential talent through
the social media. They are exploring avenues that have remained untapped
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by a lot of other organizations. For instance, the customer centric approach
in each and every area linked with Zappos allows its people to talk to
potential candidates all around the world. Weekly webinars where students
from around the world can jump in and ask questions regarding the Zappos
Culture and processes is one step towards that smart linkage creation with
potential talent.
Hence, as shown in the figure below, a lot of time and energy is invested
during this engagement phase of the process on the social media. After
receiving applications through the Insider Program and receiving Webcam
initial interviews, the screening process starts and several important
interviews are conducted. More than usual of the energy and time is spend
on the interview by recruiters the reason being that although technical
ability of a person is important, but Zappos focuses a lot upon the cultural-fit

of the person with the organization. This is why the recruiters, who analyze
this particular aspect of the person, need to focus a lot of their energies and
make the final decision.
4. Ufone:
Ufone focuses a lot of its energy and time into the competency-based
selection process. In this process, the company matches the candidates
against the functional competencies of the respective function for which the
candidate is being hired (see Figure below)
But before that, Ufone is constantly trying in order to improve upon its
Summer Internship Program. A lot of energy is vested into this currently in
order to make sure that the quality of students is kept high and a good
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amount of talent pool is generated from this program. In recent years, in
order to achieve the goal of quality talent pool, the Summer Internship
Program has seen the interns being hired drop from more than a 100 to only
30 interns in 2014.
5. Zong:
Zong, especially in the past 2 years, has focused a lot upon the Campus
Drives since the company was in the process of introducing their GTO
program for fresh graduates. Since 90 GTOs have been hired from all over
Pakistan, Zong does plan to reduce this energy focus towards the Campus
drives at least for the coming year.
Furthermore, the overall strategy is to give a lot of time and energy to the
ending of the R&S Process i.e. is the 2nd and final interviews. The Final

interviews are held with the Department Head and the HR has to make sure
that only quality candidates, 2 or 3 in quantity, are shortlisted for these
interviews. After this stage, a considerate amount of time is spent upon the
Employee Orientation. A person from each department gives an orientation
of 50 minutes in order to brief the people regarding operations of that
department and how it adds value to the overall business result.

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III.

PROFIT AFTER TAX (PAT)


R&S STRATEGIES:

PAT

PER

EMPLOYEE A CROSS-COMPARISON

WITH

PER EMPLOYEE OF EACH OF THE AFOREMENTIONED ORGANIZATIONS

WAS FOUND BY USING THE FOLLOWING FORMULA :

PAT

PER

EMPLOYEE = PAT TOTAL NO.

OF

EMPLOYEES

As has been proven through research referenced before, employees


directly contribute towards the overall business results and profits and R&S
becomes an indirect factor in the process. Based upon this notion, the
formula would provide the researchers an idea regarding how successful the
R&S strategies of each of the respective companies discussed above are.
Although the researchers feel absolutely obliged to mention at this point that
R&S is only one of the factors that contribute towards the overall business
results and the researchers believed that through calculating the PAT per
Employee, they would sufficient insight into the effectiveness of R&S
processes of the companies under consideration.
The researchers have tried to make the currency of PAT per Employee
consistent and do realize that the economical differences of Pakistan and
other countries can somehow skew the results. At this point, though, it is
necessary to come to a consistent and common factor of analysis i.e.
common currency.

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PAT per Employee Comparison


S.N
o.
1
2

No. of
Employe
es
1441
118000

Company
Zappos
P&G
McKinsey &
Co.

4
5

Ufone
Zong

1500
4000

PTC

1269

S.N
o.

Profits
after Tax
(millions)
$54.40
$11,785.00

PAT per
Employee
(millions)
$0.037752
$0.099873

17000

Company

PAT per
Employee
$37,751.56
$99,872.88

Conversion
to $
$37,751.56
$99,872.88

$20,000.00

$38,219.07

0
PKR
3,000.00

PKR 2.00

$0.00
PKR
2,000,000.00

PKR
4,850.00

PKR 3.82

PKR
3,821,907.01

PAT and R&S Focus Comparison


PAT per
Employee
R&S Process Focus

1 P&G

$99,872.88

Selection Focus

2 PTC

$38,219.07

NA

3 Zappos

$37,751.56

Recruitment Focus

4 Ufone
McKinsey &
5 Co.

$20,000.00

Selection Focus

Selection Focus

Recruitment & Selection Focus

6 Zong

Note: The R&S focus in the above table has been gauged based upon the
following scale:

Remaining within the scope of this research, the researchers came up


with the finding that most of the top companies around focus more upon the
selection process of their R&S as compared to the recruitment part of it.
As per the preceding data analysis of the companies under consideration, it
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was found out that the companies that have more PAT have a greater focus
upon their selection process which shows that the companies who take a
considerate amount of time and energy to select a particular candidate have
a positive impact upon the overall business results. The researchers find it
important to mention here that these same companies spend a considerable
amount of time and energy in the recruitment process as well but it is less as
compared to the selection process.
In order to analyze, though, following points are extremely necessary
to keep in mind regarding the companies under focus (research
limitations):

the economic dynamics of a particular country where a company


operates has a profound effect upon the overall analysis as different
countries could have different level of industry profit levels (to cater to
this, the researchers have tried to narrow down the research to Profits
per employee)
the conversion of currency had to be done in order to develop an
analysis which could skew the results
each company would hire based upon its culture and respective brand
standing in the overall market. A company with a bigger employer
brand in the market may not need to spend much effort in developing
an employer brand (e.g. P&G) whereas another company with a weaker
employer brand may have to spend more time and energy developing
the employer brand and that is why, the focus would be more upon the
recruitment side (e.g. Zong)
the industry in which a company operates could have a profound
impact upon the PAT as well. For instance, Zappos has a recruitment
focus but has a good PAT; this could be down to the type of industry
and is open for further research.
Some of the very important information has been missing regarding
the profits of certain companies (e.g. Zong and McKinsey & Co.). A
more thorough analysis would consider more companies for the same
research and focus upon depth of data as well.

Conclusion:
The researchers believe that certain elements of the R&S process of a
company could have an impact upon the overall Business Results and the
decisions made at this beginning stage of the employees lifecycle could
have a profound impact upon the overall profits that a particular employee
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makes for the company. An employee that has been hand picked out of
thousands and ensured upon that he/she fits into the culture would provide a
higher profit as compared to an employee who does not fit into the culture of
an organization. The researchers believe the reason that top companies that
are in the Fortune 500 are so successful is the fact that a) they ensure that
the employees want to work for them and b) they ensure that the employees
they choose fit into their culture. The cultural-fit aspect was one of the
common aspects that the Top 500 companies focused a lot upon, and the
people in those companies went to say so far that if a person had the
technical abilities and skills but would not fit into the culture of the
organization, he/she would not be hired.
To conclude, the researchers believe that each and every organization,
no matter where in the world, needs to ensure the cultural fit of a particular
candidate while going through their R&S process and they need to focus
upon candidates that they really believe would be a good fit for the
organization.

References

Cable, D.M. and Judge, T.A. (1997). Interviewers perception of person organization
fit and organizational selection decisions. Journal of Applied psychology. 82: 546-61
Irshad (2011). Factors Affecting Employee Retention: Evidence from Literature
Review. Abasyn Journal of Social Sciences. P. 84-102
Robert J. Vance (2006). Employee Engagement and Commitment: A guide to
understanding, measuring and increasing engagement in your organization. SHRM
Foundations Effective Practice Guidelines. P. 7 13.
Heskett, James L., Jones, Thomas O., Loveman, Gary W., Sasser, W. Earl Jr., &
Schlesinger, Leonard A. (July-August, 2008). Putting the Service-Profit Chain to Work.
Harvard Business Review. Retrieved from https://hbr.org/2008/07/putting-theservice-profit-chain-to-work

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Appendix A

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