Academy of Economical Studies from Bucharest

Faculty of Business Administration in Foreign Languages

Master program Business Administration in English

RISK MANAGEMENT
IN THE RECRUITMENT PROCESS

Coordinating teacher: Valentina Ghinea

Student:

2017
Summary:
Chapter 1. Introduction...................................................................................................... 3
1.1 Argument............................................................................................................... 5
1.2 Purpose of the work.................................................................................................. 6
1.3 Objectives and expected results.................................................................................... 6
Chapter 2. Literature review............................................................................................... 8
2.1 Theoretical aspects on risk management.........................................................................8
2.2. Theoretical aspects on human resources management.....................................................12
2.3. Risks related to labor............................................................................................. 16
2.4. Risks related to recruitment process........................................................................... 21
Bibliografie:................................................................................................................. 22
 Chapter 1. Introduction

Risk management has emerged since the formation of human communities, growing
slowly and difficult. Over time it has made a giant leap from accepting chance to identify, assess
and control major disruptions, prevent threats and capitalizing on opportunities by scientific risk
management actions.
Differentiation between hazard and risk was unavoidable, even more so, since there was a
general tendency, even in ordinary situations, to consider them as synonyms. While hazard refers
to the production of a specific event and unwanted risk it is an abstract concept, which defines
the negative or positive consequences of an event. Risk is both a numeric value, as well as an
attitude of scientific evaluation, prevention of unwanted events, mitigation, acceptance and
monitoring of probability or consequences of developing them. The multiplication of possibility
and consequences size is the best to correctly identify the specific risk.
Recruitment is the process that identifies a group of qualified candidates for vacant
positions in the organization. The process involves a research effort to ensure a sufficient number
of candidates to enable the selection of the most suitable person for a particular job.
Complementary to find a person to meet the needs of the job, the recruitment activity must
consider the needs of the person who will occupy the position. We can say that recruitment
activity aims not only to attract human resources, and increasing the chances that they remain in
the organization a relatively long period of time. This can only happen if recruits have values,
attitudes and personalities that match the existing organizational culture.
The success of the recruitment process depends on building a good strategy and a policy
based on realities of the internal and external environment of the organization. By developing
recruitment strategies and policies there can be established objectives and concepts, the
organization's code of conduct in the field of recruitment and specific behaviors of the activity,
and overall attitudes, intentions and guidelines for recruitment. Through recruitment strategies
and policies one defines how the organization fulfills its social responsibilities and philosophy
and values of the organization on the recruitment process.
Organizational policies have a significant impact on the effectiveness of the recruitment
process, requiring proper understanding and interpretation thereof in achieving efficiently
support the process.
 In practice of corporate management very little is known about what is the value of risk
management theory, in fact, it is the inability of managers to quickly assess that risk management
is a fluid and dynamic process. The research and argumentation of this work covers both these
topics, as well as other relevant concepts on managing specific risks on recruitment of human
resources.
The issue that crosses and connects the entire content of this work refers to answer
questions such as: What is risk management approaches? What are the new trends and risk
management in the knowledge society? How is regulated by Romanian and European legislation
the field of human resources recruitment and its risks and how the subject is approached in
literature? These issues have been discussed extensively in this work, concluding that risk
management in recruiting human resource is a cyclical process to be generated by the
organization's management specialists and other human resources, applied in policy and strategy
of the organization in this field in order to identify, analyze and evaluate potential events that
may affect its object and purpose and taking appropriate measures to control risk within
tolerance and risk appetite makers.
Another problem solved and linked to the previous ones was the answer to the questions:
How can we model and simulate risk in human resource recruitment? What new contributions
can be made in the field? In essence, the answer to these questions is found in the paper by
applying to the recruitment of human resources and specific patterns of risk management
methods and the use of specific mathematical tools, simulation and risk management through the
use of computer products such as Microsoft Excel, statistical software. (mai spuneti dvs ce, in
caz ca veti folosi)
Another important topic of the work was the answer to the question: Why implement risk
management in the recruitment of human resources? From my observations made in the entire
work, we can say that risk management in recruitment of human resource provides to every
organization the process it needs to become more proactive and obviously more rigorous to
evaluate and manage uncertain situations and risk in recruiting human resources.
In this context, risk management in the recruitment of human resources is the main force
to prevent and control the risks associated with recruiting human resources to protect, maintain
and develop the skills and behaviors of human resources in accordance with organizational and
individual needs of those involved in the recruitment process.
 On this foundation I have built my work divided into two main parts:
A. Theoretical part comprising: state of knowledge in the field of human resources
recruitment and risk management specific to this activity, aspects processed, interpreted and the
conclusions formulated in a personal manner;
B. The practical part, which presents: ______________________________
Dvs stiti

1.1 Argument
Risk management is an element of internal control system of an organization with which
there are discovered significant risks within the organization, the ultimate goal is maintaining
these risks to an acceptable level. In recruiting of human resources, risk management
demonstrates the managerial capacity of experts and recruiters with responsibilities in this area to
manage risks in certain specific circumstances and in a manner that supports the goals of
recruiting human resources and ultimately the objectives of the organization.
The chosen theme is very topical and important as the management of any organization,
of whatever type must face the challenges of the business environment of the fledgling market
economy in Romania, influenced in particular, the impact of globalization, the dynamism of the
economic system and evolution the global economic crisis.
In these circumstances, risk management in the recruitment of human resources should be
directly involved in the application of rigorous principles and specific techniques for the
identification, analysis, evaluation and, in particular, the strategies that risk management in
response to the challenges of organizational environment governed by uncertainty and risk.
The impact of the research carried out for the development of this work became major,
for analyzing the current state of recruitment of human resources, to identify areas, causes and
risk factors, the capacity to implement the strategies and techniques specific to risk management
in the recruitment of human resources, and for offering solutions for immediate, concrete and
generally available in clarifying issues, of course, not pretend to solve the whole issue of risk
management in this area, given the complexity of the topics and failure approach in the literature.
General issues referred to my work led me to stop at some several reasons and targets
formulated specifically relevant to the subject matter.
 1.2 Purpose of the work
Providing a touch of theoretical knowledge and practice in risk management, for
management organizations and others involved with recruitment of human resources to manage
acceptable limits, threats and vulnerabilities associated training activity, recovery opportunities
and improve skills and performance of human resource work.
In achieving the purpose of the work, prevailed the following reasons and important
objectives, as follows:
1. In a world of change from the knowledge society and knowledge-based management, it
was required to highlight the forecasting, proactive and prospective risk management in the
recruitment of human resources;
2. highlighting this risk also in the recruitment of human resources, the need to be defined
as comprehensive and rigorous risk in this area, together with identifying, analyzing, evaluating
and managing significant risks associated with this important management activity of the
organization;
3. the need of highlighting the risk management through its modeling and simulation,
combining in a balanced way by using quantitative and qualitative methods of analysis,
evaluation, treatment and risk monitoring specific to human resource recruitment;

1.3 Objectives and expected results

Objectives are specific to the two stages the paper is structured, as follows:
A. The theoretical part targeted the following objectives:
1. analysis of the current status and trends foreseeable gain of human resource role and
place in the modern organization of the XXI century;
2. new approaches for the management of the organization in the knowledge society,
organizations that hire, knowledge management and other trends foreseeable future organization;
3. issues related to the purposes, policies, strategies, plans, programs, and phases of the
recruitment of human resources;
4. conceptual and practical approaches of risk and managing its human resources by
recruiting (definition of risk in recruiting human resources and risk categories specific to this
activity, developing risk management model in recruiting human resources, zoning, causes / risk
factors in recruiting human resources, rules of identification and description of risk in recruiting
human resources, analysis, evaluation, management, monitoring, communication and know the
risks identified risks; models of the recruitment and employment of human resources; the role
and place of risk management in the recruitment of human resource in the modern organization,
risk of modeling and simulation problems in recruiting human resources).
B. The practical part targeted the objectives:
1. application of the rules, methods and techniques to identify risks specific to human
resource recruitment: in a call center; specific risks of human resource recruitment program;
2. conducting practical applications in the selection and recruitment of human resources
by adapting specific methods: qualitative and quantitative risk management;
3. assess the general state of human resource recruitment in call centers and in particular
at call centerul dvs, regarding the regulations in this field, their examination and presentation of
results;
4. Perception of operators by applying a questionnaire on the activity performed,
absenteeism etc .... probleme cu care se mai confrunta call centerul
The expected results consist in drawing some conclusions on knowledge of theoretical
and practical issues of risk management in the selection, recruitment and human resources and
providing practical solutions applicative and methodological responsible for recruiting human
resources to operationalizing and emphasizing the modeling and simulation of risk in recruiting
human resources.
 Chapter 2. Literature review
The human resources at all levels is the essence of the organization and its total
involvement allows the use of their skills and knowledge to benefit the organization. It requires
mobilizing creative involvement of all workers of an organization from top management, top-
manager, to the level of each worker. The drive function of th human resources consist of all
enterprise processes by which the staff is drawn and determined to participate in achieving the
planned objectives in the field of activity, taking into consideration the motivational factors 1.
Currently the majority opinions of specialists converge on the view that the human resources
motivation plays an important role, because only when each worker is convinced that the work
they perform may influence the quality of the products they the organization makes and the
measures to improve quality may be effective.
The call centre industry faces many human resource challenges specific to their
organizational structures, job characteristics and workforce demographic2
Numerous organizations have made awesome strides in dealing with the difficulties in
call center workforces, yet basic employment plan and limitations keep on correlating with more
elevated amounts of mental strain and stress, especially for high risk groups of people who may
be ill-suited to call centre work

2.1 Theoretical aspects on risk management

The approach and the definition of risk, over recent decades has undergone substantial
changes. Thus, from the connotation of adverse event, injury or loss was switched to the
probability of events impacting the organization and subsequently to the uncertainty on
objectives. In this new vision, the risk is simply associated with the juxtaposition of the
objectives of an organization and environment, internal or external, in which it operates. In the
past the risk was entirely equated with high severity events and treated as something that must
necessarily transferred. The current concept considers risk as an inherent element of life or
organization, you have to assume it to thrive and achieve benefits.
1 Filip, N., Popescu, I., Moraru, C.O., Ingineria si Managementul calitatii, Editura Universitatii Transilvania,
2003.

2https://www.workplacestrategiesformentalhealth.com/pdf/Call_Centre_Workers_TrendsintheCallCentre
Sector_Resource.pdf, accesat la data de 06.03.2017
 The risk is closely linked to the life and vision that people have of life. From this point of
view the risk is viewed from several perspectives: pure risk or guaranteed risks, dynamic risks,
static risks, business risks, project risks, strategic risk, operational, technical, political etc.
Risk management in human resource recruitment requires an approach from a new
perspective. Organizations, regardless of its size and management, cannot be immune to change.
Therefore, the risk in human resource recruitment should be an essential element in the strategy
of any organization's agenda since its operations brings added value consisting of new
knowledge, skills, attitude and behaviors in an evolutionary process of human resources.
In fact, the 2009 Ernest and Young Business Risk Report highlighted the importance of
HR risk management. Christopher Lipski, HR Risk Management Service Line Leader in the
United States of America (USA), said that managing risk in the HR area has become an
increasingly important issue for global executives3.
The essential definition for the risk, accepted by specialists in the field, is the one given
by the standard ISO 31000:2009 and namely "The effect of uncertainty on objectives". This
standard recommends HR personnel, recruiters, practitioners, or others with HR responsibilities
to be directly involved in:
- embedding risk management as an indispensable piece of every single authoritative
process, including overseeing change;
- considering human and social components and, all the more particularly, perceiving
the abilities, recognitions and expectations of outer and inward individuals who can
encourage or thwart the accomplishment of the organizations targets;
- building capacity for effective risk management that begins with employee
induction and follows it with training in managing risk;
- setting up fitting hierarchical structures with clear roles and accountabilities for
managing risk.
Occupational risk or professional risk represents the probability that a person is to be
subjected to a certain level of injury as a result of an adverse event, specifically identified,
involving a degree of risk during labor activity4.

3 Ernest, & Young. (2009). The 2009 Ernest & Young Business Risk Report

4 Fuller, C. W., Vassie, L. H., Health and Safety Management. Principles and best practice, Prentice Hall, 2004
 Psychosocial stressors and risks are aspects of work design, management and
organization of work and their social and environmental contexts that have the potential for
causing psychological, social or physical damage5.
Causes recognized in the literature as being generators of psychosocial risks mainly
belong to the nature of tasks, work organization, human resource policy, labor relations, the
company's general policy and sociological climate.
Laborers, employees, human resources in general are both a source of risk and method
for tending to risks, and good human resources policy or practices can reduce risks.
Risk is such an ordinarily utilized word in the economics literature that many writers
don't characterize or expressly clear up what specific particular risk they are expecting. Starting
with Knight6 who proposed a qualification amongst risk and instability, in a general sense
distinctive risky ideas can be found in the literature, extending from target ideas, for example,
likelihood of misfortune, fluctuation of benefit, and size of most extreme conceivable
misfortune7, to subjective probability concepts8 and psychological concepts of risk perception 9.
With the end goal of my work, I will consider Hardaker 10 who recommend that the difference
between hazard and uncertainty is not helpful since situations where probabilities are
impartially <known> are the exemption as opposed to the rule in decision making or leadership.
The authors define risk as presentation to negative results, taking a huge possibility of harm or

5 Cox, T., Griffiths, A., Barlowe, C., Randall, R., Thomson, L., Rialgonzalez, E., Organisational interventions
for work stress: A risk management approach, Sheffield: HSE Books, 2000

6 Knight, F.H. (1921): Risk, uncertainty and profit, Boston: Houghton Mifflin.

7 Young, D.L. (1984): Risk concepts and measures for decision analysis, ed. Barry, P.J.: Risk management in
agriculture, Ames: Iowa State University Press, 31-42.

8 Bessler, D.A. (1984): Subjective probability, ed. Barry, P.J.: Risk management in agriculture, Ames: Iowa State
University Press, 43-52.

9 Musser, W.N. and Musser, L.M. (1984): Psychological perspectives on risk analysis, ed. Barry, P.J.: Risk
management in agriculture, Ames: Iowa State University Press, 82-92.

10 Hardaker, J.B., R.B.M. Huirne and J.R. Anderson 1997. Coping with Risk in Agriculture. Oxon, UK: CAB
International. Chapters 1-2.
misfortune. Consequently uncertainty (defective information) is essential for risk to happen, yet
uncertainty require not prompt to a need not lead to a risk situation 11 . A significant perceived
negative welfare impact changes uncertainty to risk.
While Barry et al.12 make differences between business risk and financial risk, and
afterward additionally separate between various sorts of business risks, different authors 13,14,15
consider diverse sorts or sources for risks that are on the same level. Aside from Barry et al. who
conceptualize two extra risk categories (losses from severe casualties and disaster, dangers of
innovative change and obsolescence), the literature meets on five noteworthy sources or sorts of
risks:
(1) production and yield risks,
(2) cost and market risks,
(3) financial risks,
(4) human resources risks,
(5) institutional, lawful, and natural risks.
Some of the risk types the Human Capital Institute in Africa identified are presented in
Figure 1.1:

11 Harwood, J., Heifner, R., Coble, K., Perry, J. and Somawaru, A. (1999): Managing risk in farming:
Concepts, research, and analysis, USDA, Economic Research Service, Agricultural Economic Report 774.

12 Barry, P.J., Ellinger, P.N., Hopkin, J.A. and Baker, C.B. (2000): Financial management in agriculture, 6th
ed., Danville: Interstate Publishers.

13 Baquet, A.E., Hambleton, R., Jose, D. (1997): Introduction to risk management: Understanding agricultural
risks, USDA, Risk Management Agency, Washington/D.C.

14 Idem 11

15 Musser, W.N. and Patrick, G.F. (2002): How much does risk really matter to farmers? ed. By Just, R.E. and
Pope, R.D.: A comprehensive assessment of the role of risk in U.S. Agriculture, Norwell: Kluwer Academic
Publisher, 537-556.
 Figure 1.1 - Business Risks Identified in South Africa16

In spite of the fact that authors Musser and Patrick 17 suggest that money related risks,
human resources risks, and institutional risks are more imperative to farm survival than
generation and marketing risk, the literature does not reflect this. Hypothetical and empirical
publications tending to generation and promoting risks are various. Money related risks
additionally have gotten significant consideration, though legitimate and human resources issues
have been dealt with just barely. A few recent edited publications18,19 demonstrate that this
pattern is changing for natural risk. Work related risks, particularly with respect to hired labor,
are still treated just quickly.

16 Sacht, J. (2010). Business Risks Identified in South Africa. Personal discussion. Johannesburg.

17 Idem 13

18 Canavari, M., Caggiate, P. and Easter, K.W. (2001): Economic studies on food, agriculture, and the
environment. New York: Kluwer Academic/Plenum Publishers.

19 Babcock, B.A., Fraser, R.W., and Lekakis, J.N. (Eds.) (2003): Risk management and the environment:
Agriculture in perspective, Dordrecht (NL): Kluwer Academic Publishers.
 2.2. Theoretical aspects on human resources management
The term human resources (HR) was created by management guru Peter F. Drucker
(1954), in his work Practice Management, in which he presented three general functions of
managing: business, other managers, workers and labor. In comments on the management of
workers and labor Drucker introduced the concept of human resources, about which he says
are comparable to all other resources, but because is human, therefore has specific properties,
they must be considered by managers. The specific properties are the ability to coordinate, to
integrate, to judge and to design20.
Human resource management is the organizational activity that allows the most efficient
use of people (employees) to achieve organizational goals, as group and as individual.
HRM can be defined in many ways related to the institutional position of philosophy and
its followers; it presumes an approach or a total, global, interdisciplinary and professional
handling of the personnel issues within an organization21.
HR policies define the philosophy and values of the organization, according to which
people should be treated, and from these derive the principles according to which managers
should act when dealing with specific HR problems. Generally, the values underlying human
resource policies are presented in Table 1.1.

Table 1.1 - Human resource policies

Values Considerations
Equality treat employees in a fair and just, protecting any incorrect decisions of
managers, ensuring equal opportunities for employment, promotion, etc.
Consideration decisions affecting perspective, security or self-esteem of employees
taking into account the specific circumstances
Quality of continuous improvement of quality of working life in the sense of
professional life increasing motivation and improving outcomes, increase satisfaction,
reduce monotony, increasing variety and responsibility, empowerment
and reducing stress in the workplace.
Work conditions providing safe and healthy working conditions and pleasant if possible.

20 Drucker, P.F., The practice of management, New York: Harper & Brothers, 1954

21 Manolescu, A., Lefter, V., Deaconu, A., Managementul resurselor umane, Editura economica, 2007
 When hiring, the organization should consider the importance of an orientation plan or
process.
The orientation (or introduction of a new employee in the company) is the process by
which employees are welcomed and greeted them when they first join an organization and to
provide them the basic information they need to integrate quickly and smoothly.
Orientation in the organization has four goals:
make lighter preliminary stages;
quickly establish in the minds of newcomers, a favorable attitude towards the
company to increase the chances that he or she remains;
in the shortest time to reach maximum productivity the new employee;
reduce the risk that the employee leaves the organization quickly.
It is important to use a program to introduce the employee in the organization for the
following reasons:
reducing the cost and inconvenience of resignations during the first months of the entry
into organization;
increasing commitment;
clarify the psychological contract;
accelerate progress on the learning curve;
socialization.
Regarding the main activity areas of HRM literature shows different views, depending on
the country of origin of the authors, one of which is shown in Figure 1.2:
 Figure 1.2 HRM activities

Also, in decision-making amid changing environment, generating new requirements

recruitment of human resource, the managers or human resource recruitment specialists must
establish and adapt objectives, action plans and policies to achieve the objectives of human
resource recruitment. Where there is the possibility of a risk or uncertainty in recruitment, they
must identify, generate alternatives and choose the best alternative, to implement the chosen
solution, to evaluate and monitor it.
When dealing with decision problems, we distinguish at least three types of decision-
makers' attitudes towards risk namely: aversion (pessimistic); preferable (optimistic attitude, lean
towards risk); indifference. Research conducted in the field have pointed out that usually, the
individual decision makers oppose assuming the risk and when the decision-maker is a group of
people it was found that the level of risk of the group is not equal to the average risk accepted by
individual members, the key factor is the position of members before discussing the issue.
The methods and techniques for decision-making under uncertainty is another application
of risk modeling in recruitment of human resources. Uncertainty, according to its sources is
present in the recruitment of human resources with the role of condition (decision under
uncertainty), determined by the environment, as well as intrinsic decision (uncertainty decision),
favored by the human factor (the actors in decision-making process). As a result, uncertainty may
generate a series of psycho-managerial problems whose solution is likely to change produce a
sensitive decision-making process itself, the decision-makers resort to strategies different from
those implied by the analytical model.
Managers can choose between internal sources and external sources of recruitment.
Internal sources of recruitment decrease the risk of error in the hiring decision because those
selected for vacancies can already know to the recruiter.
When employees that leave the company cannot, an organization calls for external
recruitment sources. Recruiting from outside is performed informally and through formal
method.
Informal method (hiring) advertising is characterized by very limited recourse to publish
the job and it means that there will be a sort of contest between the existing employees or it
means that the employees are asked to spread the news about the job among relatives, friends,
and acquaintances. Most jobs are occupied through informal method because this method is
inexpensive, and quickly applies.
However there is a risk that, because of a certain dose of bias to favor the recruitment of
personnel less appropriate. Therefore, it is necessary as a way to be connected with informal
formal method, that involves a wider audience.
 Organizations can also call from recruitment agencies. Recruitment agencies are working
effectively but with high tariffs. There is a risk that they find and offer to unsuitable candidates,
but it is diminished if the requirements are clearly understood.

2.3. Risks related to labor

Competitive pressure and technological progress have led to increased call-center sizes.
This trend has increased the demand for hired employees 22. After the glory year 2008, when the
local service providers of Call Center has reached its maximum growth rate followed a
significant drop in pace, as an effect of the inevitable establishment of the economic crisis. But
unlike other sectors which were in the wave some years ago, this sector has not been severely
affected by the crisis - was kept on an upward trend, but with much lower rates. Domestic
demand grew slowly and even though the small cost advantage slowed down markedly in recent
years, language skills and know-how increasingly more advanced of local suppliers maintain
Romania among the countries recommended for outsourcing Call Center.
The problems faced in recent years by companies have small in-house call centers
diversified and deepened, making outsourcing to become a relevant option. Arguments in favor
of seeking an external vendor services are numerous and hard to contest under real conditions.
During the past decade, research in this field supported the premise that people are an
important source of sustainable competitive advantage for companies able to develop a skilled
and competent human resource management strategy23,24,25,26,27. This procedure focuses on the

22 Vera Bitsch, Stephen B. Harsh, Amin W. Mugera, 2003, Risk in Human Resource Management and
Implications for Extension Programming Results of Focus Group Discussions with Dairy and Green Industry
Managers, Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting,
Montreal, Canada,

23 Pfeffer, J. (1994): Competitive advantage through people: Unleashing the power of the work force, Boston
(Massachusetts): Harvard Business School Press.

24 Becker, B. and Gerhart, B. (1996): The impact of human resource management on organizational
performance: Progress and prospects, Academy of Management Journal 39 (4), 779-801.
successful administration of human capital is not physical capital, it might be a definitive
determinant of hierarchical execution28 (Youndt et al., 1996: 836) and risk resilience.
For example, if we consider a medium-sized company, following an internal analysis, we
decided to have a real need for call center services. What is the optimal solution to this problem:
the creation of an own department, to cover these needs, or the offices of an external service
provider of Call Center? The method to solve the problem, most frequently recommended by
experts, in such a case, is outsourcing. But not a few local managers - not yet fully convinced
that the offices of an external supplier can be more cost effective and efficient than in-house
development - consider the unconditional acceptance of such a heavy verdict very hard to accept.
The most encountered counterargument is the savings that can be achieved while adopting in-
house option. And then, the involvement of agents and their level of expertise are greater than the
external one. There are arguments that can even offset the initial investment effort. But if we
analyze in depth this option can identify a number of real problems, with a high incidence for
which the solution involves financial and other consistent efforts. And the results obviously are
not guaranteed.
This expresses the fact that, although other sources of risk are important, the nature of the
call centers workforce creates a unique set of management challenges. On one hand, people can
be a source of sustained success and a competitive advantage in a sector increasingly depending
on hired labor29. Call centers management must carefully analyze the potential implications of
hiring for open positions30.

25 Delery, J.E. and Doty, D.H. (1996): Modes of theorizing in strategic human resource management: Tests of
universalistic, contingency, and configurational performance predictions. Academy of Management Journal 39 (4),
802-835.

26 Youndt, M.A., Snell, S.A., Dean, J.W. Jr. and Lepak, D.P. (1996): Human resource management,
manufacturing strategy, and firm performance, Academy of Management Journal 39 (4), 836-866.

27 Lawler, E.E. III (2000): Rewarding Excellence, San Francisco: Jossey-Bass.

28 Idem 25

29 Idem 22
 Call centers are at the front line of customer service. But many things can stand in the
way of optimum service provision. So, what are the biggest problems facing call centers today?
And crucially, how can they be overcome?31

Five types of labor-related risks have been identified as being more pertinent in call-
centers. These risks are partly caused by the often short time frame for getting key tasks
performed32 (Rosenberg, 1999).

One of them is absenteeism. To argue for outsourcing specialist recommendation, we will

review briefly the main challenges facing an internal Call Center, small. Thus, the hierarchy of
the most common problems in the first place is absenteeism agents. According to a statistical
study conducted by Dimension Data33, the annual rate of absenteeism, globally, is somewhere
around 11%. It may seem an acceptable percentage, but for a Call Center with a small staff, the
absence of an agent can drastically affect the efficiency of the entire center. Overloading other
agents inevitably lead to increased waiting time for customers and decreased sensitive indicator
FCR (First Call Resolution). And if the absence comes at a peak period - for example, following
the launch of a new range of services / products or after a marketing campaign - its effects can be
drastic in terms of the level of customer satisfaction.

As mentioned before, the rate of absenteeism of 11% is global, so it affects also large Call
Center. But in this case, the impact is not felt so acutely. It is obvious that in the case of a call
center that operates constantly with 100 agents, the effect is less noticeable than the one that has
a total of 10 agents, for example. The problem is more serious for small and medium companies
30 https://www.icmi.com/files/library/tu00006.pdf, accesed on 06.03.2017

31 https://www.callcentrehelper.com/the-top-ten-call-centre-problems-12637.htm, accesed on 06.03.2017

32 Rosenberg, H.R. (1999): Recognizing and managing risks in agricultural labor management. Labor
Management Decisions 8 (1), http://are.berkely.edu/APMP/pubs/Imd/html/wintspring-99/LMK.8.1.laborisks,
accesat la data de 06.03.2017.

33 Dimension Data, Benchmarking Comparison Service Brochure,

http://www.dimensiondata.com/Global/Downloadable%20Documents/Benchmarking%20Comparison%20Service
%20Brochure.pdf#search=absenteeism, accesat la data de 06.03.2017
which do not have the resources to invest in automation solutions or operations of Call Center
facilities (like IVR or automatic reallocation of call waiting, depending on workload of each
agent).

The second place in the hierarchy of the challenges that a small Call Center is facing is
about preserving and inherent, motivation of staff that serves the center. High dynamics of the
workforce in this sector is an element to be taken into account when consider the option of an in-
house Call Center. Economic solutions, like hire some part-time students can work for a while,
but bear in mind that in order to deliver quality service, this staff should be trained and perfected
continuously. Which means, on the one hand, hiring an instructor with real experience and
skills in the field - which has its cost - and secondly the actual cost of staff training.
Lifelong learning is closely linked to the evolution that is expressed by technical
progress, the evolution of knowledge, obsolescence of those acquired in school, competitive
environment etc. This implies the need to increase the level of training for all human resources,
of their professional competence and the opportunity to move from one profession to another34.
We also emphasized the importance of continuous training as beneficial for both the
organization and for human resources, especially in the knowledge society where training
represents a new stage determined by the processes, such as: innovation (creating new
knowledge); instruction (assimilation of new knowledge) and partnership interactivity (ie
knowledge).
Staff unless duly motivated, will have a high refresh rate. This will translate to
opportunity costs of training, but also by constant exposure to the risk of overloading the
remaining agents. This risk relates to tasks being done poorly and/or not in a timely manner. This
results in poor productivity, which results in higher labor costs per unit output, or the lowering of
product value. It is, again, the question of the motivation of staff, but also the upper echelon, is
not unique to the small call center, but is also found in centers that operate with tens or hundreds
of agents. The causes are numerous: the routine work, monotonous and time-consuming,
relatively low pay (especially at lower levels), reduced opportunities for professional

34 Allaire, Y., Frsirotu, M. Management strategic. Strategiile succesului n afaceri, Editura Economic,
Bucuresti, 1998
development. Evidence for the significance of skill differentials is provided by some authors 35
who found a related wage differential in this sector.
Although the problem is common to most Call Centers, regardless the size, for the large
ones it is easier to solve on the one hand because the resources that such a center can allocate is
higher. And this is not only financial resources but also training structures that holds such a
center - many call centers have staff dedicated to these activities. Then, structure / hierarchy of a
large Call Center offer more opportunities for advancement to a certain level. However, a
specialized organization such as a dedicated Call Center will closely monitor the process of
sorting, placing a real effort in preserving agents that are really valuable by both providing
motivation and / or financial rewards and opportunities to advance professionally.
Cost-cutting and budget decrease is another problem call-centers are facing. Budget cuts
are, at least from 2008-2009, a constant reality facing companies around the world, regardless of
size, purpose and activity area. Obviously, in the pursuit of savings, and call center in-house they
were and are affected by this negative effect of the economic crisis. But the sharp decline in sales
volume and uniformity of supply, with increasing levels of competition have transformed
customer in the main resource of a company. And how it conducted, its interaction with one
company or another has become a competitive and essential factor, given that the end users have
become, in the last years of economic crisis, increasingly more careful and ambitious, their
acquisition behavior changing visibly. In such conditions, budget cuts for a small size in-house
call center, means, firstly, decreased quality of services that it offers. This translates
automatically in reduced levels of customer satisfaction and inherent in their loss. Another
important aspect in changing customer behavior is to diversify the channels of interaction
between them and companies. Expanding online media and social media impact are elements
that cannot be neglected, but which pose real problems for a Call Center with limited resources.
Integration problems with the online environment, upgrade software solutions, investment in
critical applications such as CRM, Workforce Optimization toolsor Workforce Management. And
budgetary limitations mentioned above are not meant to solve such problems, but to increase
them.

35 Erven, B.L. The role of human resource management in risk management,

http://aede.osu.edu/people/erven.1/HRM/index.htm, accesat la data de 07.03.2017
 The fourth risk is the struggle with workers, conflicts between employees than can
prompt to any of the already examined risks. Lawful suits against managers are turning out to be
more successive. Safeguarding against them is costly; not the least being lost managerial and
employee's time at work. Indeed, even before a formal legitimate move is made, a seething
conflict lessens representative profitability and can harm work environment spirit. A useless
conflict can emerge can arise from being inattentive to employees' basic needs for information,
poor communications, having unrealistic performance expectations, abusive supervision, or
ignorance of legal mandates and prohibitions36.
The last risk hazard, as a rule related with any of the past risks, is the shot of bringing
about fines or having punishments forced for infringement of laws and control, or the cost of
demonstrating consistence with the laws and directions.
This study was conceived as a first phase to identify risks in managing human resources
in agriculture, which has received considerably less attention than other types of risk in call
centers activity research. Given the limited availability of prior research, the nature of the study
is explorative, based on qualitative research methods.
2.4. Risks related to recruitment process
Hire the wrong person costs even more than you'd expect, and this is why more and more
employers do not take risks in recruitment and verifies skills and knowledge of each candidate
before offering them a job. In the short term the idea may seem expensive, but for a long-term
process, the companies can benefit, say some human resources specialists.
The selection process is the activity of choosing the most suitable candidates to be
recommended to customers in order to fill a particular post, according to defined criteria.
This selection can be made empirically by considering formal qualifications, skills and
behavior of candidates, and also scientific qualifications, using complex and appropriate
evaluation methodologies.
The selection process involves a series of stages, which is screening the candidates
filters:
- preliminary selection of the CV;
- Phone Interview;
- Behavioral Interview;
36 Idem 21
 - Psychological Testing;
- Professional Testing;
- Check references.
A key moment in the selection process is the pre-selection based on the information
contained in resumes and telephone interview, structured investigation and eliminatory criteria
for the job that the company is recruiting. It is recommended to call for interviews only people
with relevant experience and training.
Also, if the professional experience is not required, it is desirable interviewing those who
have real potential.
In the moment of conception of a "short list", the companies must consider how
appropriate are the recommended candidates according with job requirements in terms of
professional experience, skills, qualifications and achievements and culture of the organization.
But risks may arise in carrying out the selection process. Some candidates may try to give
those desirable responses in telephone interviews, relying on the good faith of the consultant.
Also, during the talks face to face, candidates are trying to "look good" in front human resources
specialists, in order to be recommended to the client. It is possible that other candidate wants to
bypass the answer, to get time to think, anticipate the answer expected by the interviewer or to
take control of the discussion to provide only the information that he wants to provide. In turn, it
is also possible that the consultant will have an attitude of superiority or he will assign certain
prejudices to the candidate, due to issues related to professional or personal belonging or guided
by certain stereotypes in evaluation.
According to some studies, the quality of recruitment is provided primarily by references
requests, internal control and background screening. Ensuring the responsibility assumed by
recruitment agencies had a share above 30%.
From experienced responses by improper recruiting it is increased risk of damage the
quality of work, the emergence of conflicts in team and clients and other risks.
Also, according to some studies, validation of information from CV by background
screening is always done by only 22%, while 35% of the companies choose rarely to do this
validation. HR experts consider a rate of over 50% that background screening is useful for all
categories of employees, 26% of them considering it useful only for top management. The
responsibility of the CV checking is performed in general by HR / recruitment. Only 9% of
companies prefer outsourcing this service.
Outsourcing background screening is seen as a useful thing in proportion of 49% and the
main benefits of outsourcing service are accuracy, time saved and impartiality.
Companies that participated in this study believe that the most important components of a
resume that require validation but are difficult to validate, are the reputation and experience. 51%
of them found false information in their resume after verification.
The main risks identified by experts in HR recruitment affect both teams, and corporate
image to customers and internal fraud. Some companies say they were happy to identify also in
the respondent's answers that a handy tool for managing these risks is to verify the information in
CV and application references, either internally or outsourced to specialized companies.
The onset of any recruitment project must match the deep perception of company and its
organizational culture, its strengths (examples: pleasant environment, good location, projects /
clients of scale etc.) or its weaknesses (e.g. salary lower than market). Each recruitment
department must also know exactly what is the direct and indirect competition when attracting
new employees.

2.5. Research methodology

To plan and act in an organized manner must represent basic actions of any
department or organization, regardless of market conditions in which it operates.
So, whatever the number of candidates available, unemployment or specific
industry, an effective recruitment department must draw and pursue periodically
some strategic lines.
When talking about research there are two types of techniques we can use:
quantitative - aimed at obtaining statistics, percentage or number, so measurable -
and qualitative, based not so much on calculations, but on the interpretation of
various types of content.
The research process includes several distinct stages:
1. Define the problem: choice of questions.
2. Review the evidence and reviewing the literature.
3. Clarification of the problem by the hypothesis.
 4. Selection of the research plan by choosing one or more research methods
(experiment, study, observation, using existing sources).
5. Conducting research: data collection and recording of information.
6. Interpretation of results: collected data processing implications.
7. The reporting findings by the research report
Qualitative research involves the interpretation of texts written or recorded
conversations or audio-video. I will describe below some of the most important
information gathering techniques used in qualitative research.
Qualitative research techniques are:
1. Case Studies, journals, history, questionnaires
2. Depth Interview
3. Focus groups
The method of investigation is determined both by suitability for the intended
techniques (techniques must be linked because each one has limits) and
accessibility and cost. For example, when choosing the questionnaire as a research
technique, it is important to know that it should be "doubled" by direct observation
technique and indirect observation technique (e.g. research documents).
The questionnaire is probably the most common method of quantitative
research level. P. Pichot says that questionnaires "are tests consist of a larger or less
number of questions submitted in writing to subjects and covers opinions,
preferences, feelings, interests and behavior in specific circumstances ".
Roger Mucchielli, said on the questionnaire that "cannot be considered just a
list of questions." Earl Babbie says that the survey means "a method of data
collection by (1) the questions asked to persons or (2) by asking them whether they
agree or disagree with statements representing different points of view". Chelcea
defines the questionnaire as "a technique and, accordingly, an investigative tool
consisting of a set of written questions and possibly graphics, logically and
psychological sequenced, that by administering by investigation operators or self-
administration, it determines some answers from the investigated people; the
answers are to be recorded in writing".
In a questionnaire the questions usually follow an internal logic set by the
researcher. There are - generally speaking - questionnaires that start with questions
simple whose complexity increases as one goes further in their development
(Questionnaires "funnel"), other questions starting with neutral advancing towards
personal questions or questions nonspecific going to some very specific. Obviously,
according to the internal logic of research and according to particular objectives can
also be used questionnaires of "inverted funnel" (starting with complicated
questions to simple questions).
In determining succession questions it needs to consider a number of issues that
favor communication and foster cooperation subject. For example, at the beginning
of the questionnaire is recommended to use one or more questions "easy" to which
people respond with pleasure in order to train subject
dialogue.
Interview (Method IP)
In Romanian, the term "interview" is a neologism derived from language
English (interview - meeting meeting), being used both in journalism and in
social and human sciences. He is the French equivalent terms "entretien"
(Conversation, talk) and "entrevue" (meeting between two or more persons).
The second term, despite being the literal translation of the Anglo-Saxon,
however involves a different meaning: has a hue van, arrangement or surprise
(Grawitz, 1972).

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