Reference no: EM133212546
Case Study Information
Damon, the general manager of SUNNYDALE corporation, is facing a difficult situation. The employees organized a strike. The employees' key demands are clear, fair, and objective recruitment policies. Damon knows that current organizational development strategies are weak and do not promote organizational effectiveness; he is determined to change that.
When Damon established SUNNYDALE corporation, he was focused on success, and HR policies were not a priority at that time. He spent his time designing stores, looking for market opportunities, and never thought about developing any HR policies. Days passed by, and SUNNYDALE corporation grew rapidly without having any HR policies; the company especially lacked policies that promote organizational effectiveness. SUNNYDALE store employees were getting frustrated since the company lacked a clear compensation structure, also recruiting policies were non-existent.
One day the HR manager passed by Damon and explained that they should act now and develop recruitment strategies and policies. Existing employees are very upset about the unorganized recruitment strategies, and they feel disadvantaged. The strike started because they realized that new hires were getting paid more than existing employees with a long-standing track record of achieving targets. It also proved that HR had a lot of discretion when it came to recruitment strategies, and so they offered different compensation packages to hires with the same qualifications. Many employees think this is an unfair practice, and they demand to change it. So, the HR manager passed by Damon, and they started discussing possible solutions.
First, they discussed the recruitment process, which is currently done by using qualitative data. The recruitment process is a mess, it doesn't have any clear criteria, and potential candidates are judged based on their qualitative characteristics. The HR manager explained that this could be a dangerous game since some candidates could feel disadvantaged; thus, they could seek litigation. The HR manager proposed using a recruitment strategy that focuses on "Employer Branding" this strategy will enable the company to develop a unique brand in the marketplace to attract potential candidates. The brand will advertise objectivity in the recruitment process, fairness, and transparency. Damon thought this was a great idea, and he is eager to implement it.
Moreover, SUNNYDALE corporation doesn't measure its recruitment efficiency. The HR manager explained the importance of measuring recruitment efficiency. The key metric to use in this case is the "Recruiting Yield Pyramid." Damon knows nothing about the "Recruiting Yield Pyramid," and he asked the HR manager for a detailed report explaining the key features and advantages of using the "Recruitment Yield Pyramid." The HR manager is convinced about the efficiency of the "Recruitment Yield Pyramid." He said: "if we implement it correctly, this policy will promote our organizational efficiency, thus improving our bottom line, and enhancing profits." Damon agreed to give it a try, but he needed more information to make sure they were doing the right thing.
Finally, Damon suggested the use of commissions as a part of the compensation structure. The HR manager agreed with Damon, and they decided to include it in the recruiting plan. Damon and the HR manager agreed that commissions enhance profitability and organizational effectiveness. Using commissions as a compensation tool is far superior to using a flat salary. Currently, the company doesn't have a recruitment plan, but Damon and the HR manager agreed to draft one pretty soon and implement their ideas in the newly
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