Recruiting the Cisco Way Case 5 Q.

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by Ravikanth R - Tuesday, 23 July 2013, 5:19 PM

The changing dynamics of the global InfoTech industry necessitated Ciscos decision to change its recruitment process. Discuss the importance of recruitment and selection to an organizations business success. How did the changing dynamics of the global InfoTech industry influence the companys recruitment process? Give reason to support your answer.

Ans

Organizations business success and recruitment and selection importance

In order to maintain business performance and competitive advantage, organisations must recruit the best people they can.. An organisation may have all of the latest technology and the best physical resources, but if it does not have the right people it will struggle to achieve the results it requires. This is true across the whole spectrum of business activity e.g. schools, hospitals, legal practices, restaurants, airlines, and diesel engine manufacturers. The level of recruitment and selection strategic integration is positively related to growth in market share, profits and sales, employees satisfaction, employees productivity, and negatively related to employees turnover. According to Ciscos vision statement, Attracting, growing and retaining great talent is critical to sustaining Ciscos competitive advantage. Thus, effective recruitment was used as a powerful strategic weapon by the company. Because of following reasons, recruitment and selection process becomes important to organizations business success: 1. Cost: There are many ways in which poor recruitment practices can result in financial losses. For example, if a candidate's competency is not accurately assessed, he may make mistakes that can hinder productivity. If he needs to be retrained or replaced, this takes up more company time that could otherwise be invested toward remaining competitive. 2. Retention: Improper recruitment and selection practices can often result in high turnover or involuntary separations. Another so-called "red flag" is a gradual decrease in responsibility. For example, if the candidate starts out working as a senior manager and slowly shows progression to a less complex role, this could indicate that he is not as competent as he claims. 3. Loyalty and productivity: Employees who feel dedicated to the organization will work hard to help it succeed. With this in mind, recruiters must ask questions that provide information about a candidate's strengths and weaknesses. Additionally, interviewers should inquire about a candidate's greatest achievements throughout her career. Generally, loyal employees will have a track record of striving for excellence, resulting in a more competitive, innovative and profitable business.

4. Legal Issues: Discrimination is a serious concern among recruiters. If discriminatory hiring practices can be proven, this could result in serious harm, both financially and in terms of reputation. The United States Department of Labor forbids discrimination based on race, color, national origin, sex, disability, religion, political affiliation, religion or age. Steps can be taken to avoid such complications.

Changing dynamics of the global InfoTech industry and influence on companys recruitment process Reasons to support

In a constantly changing business world, companies need to hire people who are adaptable, loyal, knowledgeable, dependable and confident, thereby creating a foundation for success. How this influences recruitment process, can be well explained with the help of Cisco case study. Ciscos recruitment process was influenced in following ways due to changing dynamics of global info tech industry: 1. Cisco targeted passive job seekers. They published companys internet address in ads. Cisco formed focus groups to attract happily employed people. Focus group studied liking of target employees and took measures accordingly. For ex: They tied Dilbert.com with their website. Reason: Most of the achievers in the industry remain passive as they are usually well taken care by companies. Attracting such talent needs innovative methods.
2. Cisco targeted friends of employees. They launched Friend program. Cisco made Friend referral program more attractive by offering incentives upto USD 500 if the prospect candidate joins through referral. Reason: If the friends talk good about the company, candidate will approach them for recruitment. Since friends would have similar skills and likings, joining probability increases 3. Cisco organized or participated in social events like art fair, beer festivals. Cisco recruiters mingled in the crowd during such events and informally collected information about prospects Reasons: In Silicon Valley, such event attracted most of the talent. Understanding their views and needs can be better understood from such gatherings and the can be contacted accordingly 4. Cisco launched online tool Profiler. This made automated generation of resume and submission easy Reasons: Most of the prospective job seeker in the related industry have internet at work place and it is easy for them to generate their profile and submit online while on their work. As the trend suggests, most of the applications were received during 10 AM to 3 PM on working days 5. Cisco hired In-house headhunters for Managerial candidates

Reason: Filtering candidate saves recruitment process time on both the parts i.e. recruiters and candidates 6. Cisco launched internal referral program Amazing people Reason: Referral program is successful globally as good employees bring good people. Retention due to groups is helped. Employees work as ambassadors.