Human Resource Management

Arab World Edition

Gary Dessler & Akram Al Ariss

Instructor’s Manual

Adapted by Dr. Victor Sohmen

Drexel University

Philadelphia, Pennsylvania, USA.

With

Translating Strategy Into HR Policies and Practices: The KAMCO Case model
answers provided by Dmytro Roman Kulchitsky, Ph.D. and Mr. Ramsey Awwad
American University of Kuwait
 This part in your main source
“textbook’’ from page 96 to page 127.
PART TWO RECRUITMENT AND PLACEMENT

C H A P T E R T F i v e

Lecture Outline
Personnel Planning
and Recruiting
5
Strategic Overview
The Recruitment and Selection Process
Planning and Forecasting
Forecasting Personnel Needs
Forecasting the Supply of Inside Candidates
Forecasting the Supply of Outside Candidates
Effective Recruiting
Why Recruiting Is Important
Recruiting’s Complexities
Organizing the Recruiting Function
Measuring Recruiting Effectiveness
The recruiting Yield Pyramid
Internal Sources of Candidates In Brief: This chapter explains the process
Internal Sources: Pros and Cons of forecasting personnel requirements,
Finding Internal Candidates discusses the pros and cons of methods
Rehiring used for recruiting job candidates, describes
Succession Planning how to develop an application form, and
Improving Productivity Through HRIS:
explains how to use application forms to
predict job performance.
Succession Planning Systems
Outside Sources of Candidates
Interesting Issues: The Internet has
Recruiting via the Internet
changed the face of recruiting, particularly
Advertising
in advertising for applicants. Employers can
Employment Agencies now reach more potential applicants in less
Offshoring/Outsourcing White-Collar and Other Jobs time, and less expensively. However, this
Executive Recruiters tool has generated some challenges.
On-Demand Recruiting Services Employers may get too many applicants, or
College Recruiting fail to reach certain segments of the
Referrals and Walk-Ins population.
Recruiting Source Use and Effectiveness
Improving Productivity Through HRIS: An Integrated
Technology Approach to Recruiting
Recruiting a More Diverse Workforce
Older Workers
Recruiting Minorities and Women
Recruiting Expatriates
Developing and Using Application Forms
Purpose of Application Forms
Using Application Forms to Predict Job
Performance
LEARNING OBJECTIVES

1. Explain the main techniques used in employment planning and forecasting.

2. List and discuss the main outside sources of candidates.
3. Effectively recruit job candidates.
4. Name and describe the main internal sources of candidates.
5. Develop a ‘help wanted’ ad.
6. Explain how to recruit a more diverse workforce.

ANNOTATED OUTLINE

I. The Recruitment and Selection Process

A. The recruitment and selection process can be seen as a series of

personnel hurdles involving: personnel planning and forecasting;
recruiting; selection tools; and, interview.

II. Planning and Forecasting

B. Forecasting Personnel Needs –Forecast revenues, and then estimate the

size of the staff required to achieve this sales volume.

1. Trend Analysis – This means studying a firm’s employment levels

over a period of years to predict future needs.

2. Ratio Analysis – Making forecasts based on the ratio between (1)

some causal factor, like sales volume, and (2) number of employees
required, like number of salespeople.

3. The Scatter Plot – Shows graphically how two variables (such as a

measure of business activity and a firm’s staffing levels) are related.

4. Using Computers to Forecast Personnel Requirements – The use of

software programs can enable employers to quickly translate
projected productivity and sales levels into forecasts of personnel
needs, while estimating how personnel requirements will be affected
by various productivity and sales levels.

B. Forecasting the Supply of Inside Candidates

1. Manual Systems and Replacement Charts – Simple manual devices

can be used to keep inventories and development records to compile
qualifications information on each employee. Personnel replacement
charts show the present performance and promotability for each
position’s potential replacement. Position replacement cards can
also be created for each position to show possible replacements as
well as their present performance, promotion potential, and training.

2. Computerized Information Systems – These are used to track the

qualifications of hundreds or thousands of employees. The system
can provide managers with a listing of candidates with specified
qualifications after scanning the database.

3. The Matter of Privacy – Employers must balance an individual’s right

to privacy while making HR information legitimately available to
those in the firm who need it. ArabRec’s website
 (http://www.ArabRec.com/) is an example of of how one Arab
recruitment website manages the privacy of individuals.

C. Forecasting the Supply of Outside Candidates – This may involve

considering general economic conditions and the expected rate of
unemployment. In Arab countries such as Dubai (UAE), there has been
some economic crisis, though several Arab countries have shown
economic recovery reflecting the need for recruitment efforts.

II. Effective Recruiting

A. Why recruiting is important – Recruiting needs to be effective, and can get

more complex as the competition increases for fewer vacancies. This will
require interviews and other tests to screen out all but the best.

B. Recruitment’s Complexities – Recruitment is complex because it should

be aligned with the company’s strategic plans. Some recruiting methods
are superior to others, including adopting non-recruitment incentives to
widen the applicant pool. Simultaneously prescreening applicants and
presenting a good image of the company attracts the best candidates.

C. Organizing the Recruitment Function – Companies make a choice to

centralize their recruiting efforts or to decentralize to various locations.
Advantages of centralizing are that it is easier to apply the company’s
strategy priorities company-wide. In addition, it reduces duplication,
makes it easier to spread the cost of new technologies over more
departments, and builds a team of recruitment experts, and makes it
easier to assess the effectiveness of the function. However, if divisions
are autonomous or needs are varied, decentralization is a more sensible
choice.

1. Line and Staff Cooperation – Since the recruiting HR manager is

seldom responsible for supervising the performance for the vacant
position, he/she must communicate with the supervisor to find out
exactly what the job entails.

D. Measuring Recruiting Effectiveness – Assessing the quality of each

recruitment source will help HR managers to determine where the most
cost effective recruiting sources are and thus determine where they want
to direct their recruiting dollars, Prescreening selection devices shown
in Table 5-2 are helpful tools to get quick assessments on whether
applicants are qualified. An example of Al-Futtaim is described here as a
best practice in terms of measurement techniques.

1. Al-Futtaim - Headquartered in Dubai, Al-Futtaim applies best

practices measurement techniques to the job of hiring highly
technical workers. Al-Futtaim has adopted a strategy of using
technology in the measurement process, creating a website:
www.afuturewithus.com that attracts international job candidates.

C. The Recruiting Yield Pyramid – is used by some employers to calculate

the number of applicants they must generate to hire the required number
of new employees. Figure 5-5 illustrates the pyramid.
 NOTES Educational Materials to Use

III. Internal Sources of Candidates

A. Internal Sources: Pros and Cons – There are both pros and cons to
recruiting from within the company. While there is no need for
orientation, and the strengths and weaknesses of the candidates are
more obvious to the firm. A problem with internal hiring is that the
unsuccessful candidates become disgruntled, and a lot of valuable
productive time can be wasted in the process of internal hiring.

B. Finding Internal Candidates – To be effective, promotion from within

requires using job posting, personnel records, and skill banks.

C. Rehiring – Rehiring former employees has its pros and cons. On the
positive side, they are known quantities and are already familiar with the
organization. But former employees may return with negative
attitudes. Current employees may perceive that the way to get
ahead is to leave and come back.

D. Succession Planning – Planning ensures a suitable supply of successors

for senior or key jobs. It can include the following activities: determining
the projected need for managers and professionals by company level,
function, and skill; auditing current executive talent to project the likely
future supply for internal sources; planning individual career paths based
on objective estimates of future needs and assessments of potential;
career counseling based on the needs of the individual and the firm;
accelerated promotions, with development targets against the future
needs of the business; performance-related training and development;
planned strategic recruitment to fill short-term needs and to provide
people to meet future needs; and actually filling the positions. In the Arab
world, despite a high proportion of family businesses in existence, almost
half of them have no succession plan.

E. Improving Productivity Through HRIS: Succession Planning Systems –

The HRIS is a software or online solution for the data management
needed by HR. For succession planning, HRsmart (www.hrsmart.com)
began operating in the Arab world in 2006. Such succession planning
allows companies to build a talent pool and employees to stay committed
to their career within an organization.

IV. Outside Sources of Candidates

A. Recruiting Via the Internet – Most employers find that the Internet is their
best choice for recruitment efforts. Social networking also provides
recruiting assistance. For example gulftalent.com is one of the leading
Arab online recruitment portals. Rather than placing their own internet
ads on their own sites or on sites like Monster.com, many managers do
keyword searches on sites like ArabRec.com, which contains a résumé
database.
 1. Advantages – The Web is cost efficient, generating more responses
more quickly and providing exposure for a longer time at less cost.
(e.g. www.careerjet.ae).

2. Disadvantages – An employer may end up with a large number of

résumés. There are several ways to handle this, for example, by
detailing job duties, so those not interested need not apply. Another
approach is to have job seekers complete a short online
prescreening questionnaire, and then use these responses to identify
those that may proceed in the hiring process.

3. Using an Applicant Service Provider (ASP) – Web-based ads

generate so many applicants that some Arab firms are using
application service providers to support their on- and off-line
recruiting efforts.

4. Applicant Tracking Systems – Web-based ads generate so many

applicants that most firms are installing tracking systems to help
attract, gather, screen, compile and manage applications.

5. Designing Effective Internet Ads and Systems – Employers have only

about four minutes to get job seeker attention, so ease of use is key
in design. Figure 5-6 shows effective and ineffective ads. Online
recruiting requires caution on the part of the applicants. Many job
sites do little to question the legitimacy of the ‘recruiters’ who use
their sites.

B. Advertising

1. The Media – The best medium should be selected based on the

positions for which you are recruiting.

2. Constructing the Ad – Many experienced advertisers use a four-point

guide called AIDA (attention, interest, desire, action) to construct
their ads.

3. Employment Ads and Image– Recent studies show that it pays for
employers to formulate marketing campaigns aimed at making
themselves more attractive to potential recruits.

C. Employment Agencies

1. Private Agencies – These charge fees for each applicant they place.
Typically, market conditions determine whether the candidate or
employer pays the fee.

2. Temp Agencies - Employers can hire temp workers either directly or

through temporary staff agencies. Direct hiring involves simply hiring
workers and placing them on the job. The other approach is to retain
a temp agency to supply the employees. Here the agency handles all
the recruiting, screening, and payroll administration for the temps.

3. Benefits and Costs – The benefits of contingency staffing include

increases in overall productivity, and time and expenses saved by
not having to recruit, train, and document new employees. The costs
include fees paid to agency and individuals’ psychological reference
 to their place of employment. Many employers use temporary
agencies as a way to “test drive” prospective employees before
hiring them.

4. Concerns: Managers supervising temps should understand the main

concerns of their temp employees, by treating them well and
providing feasible benefits and security.

5. Guidelines: Basic policies and procedures for successful temping

include: timely and appropriate invoicing; timesheets; temp-to-perm
policy; recruitment of, and benefits for temp employees; dress code,
and, job description information;

D. Offshoring/Outsourcing White Collar and Other Jobs – Hiring workers

abroad is becoming more and more common. Outsourcing is a trend
starting to emerge in the Arab countries.

1. Main Issues – There are several specific issues that the HR manager
should keep in mind when considering outsourcing. These include 1)
the potential for instability or military tension in countries such as Iraq
and Lebanon; 2) the likelihood of cultural misunderstandings; 3)
security and privacy concerns; and 4) the need to deal with foreign
contract, liability, and legal systems issues.

E. Executive Recruiters – Also called headhunters, these are special

employment agencies retained by employers to seek out top-
management talent for their clients.

1. Pros and Cons – Recruiters can be useful and can save a manager’s
time, but they can be more interested in persuading you to hire a
candidate than in finding the one who will really do the job.

2. Guidelines – Make sure the recruiting firm is capable, meet the

individual who will handle your assignment, and ask how much the
firm will charge. Never rely on the recruiter to do all the reference
checking.

When You’re On Your Own: Recruiting 101 This dialogue talks

about small business owners who have the challenge of taking their
managers to the next level for the company to expand. The owner
cannot cut corners when hiring executives to move the business to a
higher level.. This may require the services of professional search
firms that could be costly, Networking may be helpful, and hiring from
within may not always be a feasible option.

F. On Demand Recruiting Services (ODRS) – This service provides short-

term specialized recruiting to support specific projects without the
expense of retaining traditional search firms. Basically, recruiters get
paid by the hour or project, instead of a percentage fee. Two trends –
technology and specialization – are changing the executive search
business. Executive recruiters are being more specialized, and large
ones are creating new businesses aimed specifically at specialized
functions or industries.

G. College Recruiting – This involves sending employers’ representatives to

college campuses to prescreen applicants and create an applicant pool
of management trainees, promotable candidates, and professional and
technical employees.
 1. On-campus Recruiting Goals – These are to determine whether a
candidate is worthy of further consideration, and to attract good
candidates. The school’s reputation and the performance of previous
hires from that source affect school selection.

2. On Site Visits – These are usually extended to good candidates.

3. Internships – These are a recruiting approach that can be a win-win

situation for the employer and the student. For employers, interns
can make useful contributions while being evaluated for possible full-
time employment. Students, are able to hone business skills, check
out potential employers, and learn more about their likes and
dislikes.

H. Referrals and Walk-Ins – These are alternatives for identifying potential

candidates. Referrals tend to generate high quality candidates. Walk-in
candidates may be attracted by posting a “Help Wanted” sign.

1. Pros and Cons – The biggest advantage is that referrals tend to

generate high-quality candidates. They can also facilitate diversifying
your workforce, and can can be more cost-effective. However, this
can backfire if the firm rejects the employee’s referral, and they
become dissatisfied.

I. Recruiting Source Use and Effectiveness – Figure 5-8 summarizes a

survey of best recruiting sources. Table 5-3 gives guidelines to improve a
firm’s recruiting efforts.

1. Image - The overall image the firm projects is important in attracting

top candidates. Companies like Al Jazeera, Emaar, and Aramex
have been building an image in the Arab region and making their
presence felt globally.

J. Improving Productivity Through HRIS: An Integrated Technology

Approach to Recuiting – Employers may use computerized systems to
support their recruitment processes, preferably integrating them into a
comprehensive employee recruitment system. The elements of such a
system include: a requisition management system; a recruiting solution;
screeing services; and, hiring management;

 NOTES Educational Materials to Use

V. Recruiting a More Diverse Workforce

A. Older Workers – While the overall population in many Western countries

is getting older, the Arab region today shows a very different profile, with
a large youth population and a comparatively smaller, though growing,
proportion of older people. The Arab youth population suffers from high
unemployment rates.
 C. Recruiting Minorities and Women – requires employers to tailor their way
of thinking and to design HR practices that make their firms attractive to
them.

1. Understand
2. Plan
3. Implement

D. Recruiting expatriates – In the Arab region, relying on a diverse

expatriate workforce is a must, as local workforces are not always
available to fill the labor markets needs.

 NOTES Educational Materials to Use

VI. Developing and Using Application Forms

A. Purpose of Applications Forms – Application forms are a good way to

quickly collect verifiable and fairly accurate historical data from the
candidate. In practice, most employers encourage online applications.

C. Using Application Forms to Predict Job Performance – Some firms use

application forms to predict which candidates will be successful and
which will not by conducting statistical studies to find the relationship
between (1) responses on the application form and (2) measures of
success on the job.

 NOTES Educational Materials to Use

DISCUSSION QUESTIONS

1. What are the pros and con of five sources of job candidates? The text lists several
sources of job candidates, both internal and external. The student should clearly identify the
differences as well as comparative strengths and weaknesses of each. There are at least the
following sources to choose from: advertising, employment agencies, executive recruiters,
online job services, college recruiting, referrals, and outsourcing.

2. What are the four main types of information that application forms provide? The
application form is a good means of quickly collecting verifiable, and therefore potentially
accurate, historical data from the candidate. It usually includes information on education,
prior work history, and other experience related to the job The application form can provide
four types of information: 1. substantive matters (such as education and experience); 2.
applicant's previous progress and growth; 3. stability based on previous work history; 4.
prediction of job success.
3. What are key things employers should keep in mind when using internet sites to find
job candidates? Keyword searches, do not recycle your newspaper ads, give quick
feedback, ensure privacy, applicant tracking, etc.

5. What are the main things you would do to recruit and retain a more diverse workforce?
The student should first be able to identify groups that would create a diverse workforce.
Examples found in the text are: older workers, minorities and women, and expatriates. In
order to retain these employees, students would first need to understand the needs of each
group, and then create plans and programs that accommodate these specific needs.

INDIVIDUAL AND GROUP ACTIVITIES

1. Working individually or in groups, bring to class several classified and display ads from
the website ‘www.gulfjobsites.com’. Analyze the effectivenss of these ads using the
guidelines discussed in the chapter. The effectiveness should be analyzed using the
following list: attracts attention, develops interest, creates desire, and prompts action.

2. Working individually or in groups, develop a five-year forecast of occupational market

conditions for five occupations such as accountant, nurse, and engineer. Be sure that
the forecasts the students develop are grounded in information gleaned from these sources.
They should do an adequate analysis of the statistics.

3. Working individually or in groups, visit the local office of Adecco ME (or another
recruitment agency in your area). Come back to class prepared to discuss the
following questions: What types of jobs seem to be most available through this
agency? To what extent do you think this particular agency would be a good source of
professional, technical, and/or managerial applicants? What other services does the
office provide? What other opinions did you form about this agency? Generally, these
agencies may be more oriented to unskilled and skilled positions; rarely do they handle
professional and managerial positions...although some do quite a bit. Although students may
come back with a negative view of these offices, help them to understand the valuable role
that they do play. A special note of courtesy: make sure that your have discussed this
assignment with the local agency office. Surprise visits by several groups during busy
periods can create some especially negative relations between the office and your school.
Make sure they are welcome and expected.

4. Working individually or in groups, find at least five employment ads either on the
Internet or in a local newspaper, that suggest that the company is family-friendly and
should appeal to women or minorities. Discuss what they’re doing to be family-
friendly. Students should identify statements in the ad that would suggest that they are
aiming to be family-friendly—and identify the possible rationale for such a stance.

5. Working individually or in groups, interview a manager between the ages of 25 and 35

at a local business who manages employees 40 or older. Ask the manager to describe
three or four of his or her most challenging experiences managing older employees.
Students should probe the manager to see if he/she mentions that the older employee found
the experience challenging as well.

EXPERIENTIAL EXERCISE

The Nursing Shortage

This is a good exercise for students to create a recruiting approach for nursing jobs and use their
creativity and what they have learned in the chapter.
In Arab countries, unemployment is still disappointingly high, and employers are still obviously
holding back on their hiring. However, while many people are unemployed, this is not the case
with nursing professionals, and owing to a shortage of nurses in the region, many hospitals in the
Arab world are turning to foreign-trained nurses. Experts expect nurses to be in short supply in
years to come.70

Purpose: The purpose of this exercise is to give you experience in creating a recruitment
program.

Required Understanding: You should be thoroughly familiar with the contents of this chapter, and
with the nurse recruitment program of a hospital in your country.

How to Set Up the Exercise/Instructions: Set up groups of four to five students for this exercise.
The groups should work separately and should not converse with each other. Each group should
address the following tasks:

1. Create a hard-copy ad for the hospital to place in the Al Waseet and Daily Star newspapers.
2. Analyze and critique the hospital’s current online nurses’ ad. How would you improve it?
3. Prepare in outline form a complete nurses’ recruiting program for this hospital, including all
recruiting sources your group would use.

APPLICATION CASE

Al Jazeera News Channel

1. Identify some techniques that Al Jazeera can use to plan, forecast, and recruit. Al
Jazeera should actively recruit potential employees early in the hiring cycle. Their techniques
should include reviewing resumes using a keywords search, attending job and career fairs,
conducting on campus interviews, flying in prospects for interviews, and having more
personalized procedures for handling top recruits. Advertising in the best online jobsites such
as Bayt.com also would help in the worldwide recruitment prospects.

2. What particular elements of Al Jazeera’s culture are most likely to appeal to

international candidates? How can it convey these elements to job prospects? Al
Jazeera should actively recruit potential employees early in the hiring cycle. Their techniques
should include reviewing resumes using key words’ search, attending job and career fairs,
conducting campus interviews, flying in prospects for interviews, and having more
personalized procedures for handling top recruits. Advertising in the best online jobsites such
as Bayt.com also would help in the worldwide recruitment prospects.

3. Would Al Jazeera appeal to you as an employer? Why or why not? If not, what would it
take for you to accept a job offer from Al Jazeera? Students may answer this either way.
Students who require more structure may want to know about company profile and growth
prospects, career paths, training, mentoring, and, measures of success. They may want the
company to uphold equal opportunity, fairness, and corporate social responsibility.

CONTINUING CASE

Al Nazafa Company – Getting Better Applicants (LO 5.3-5; AACSB: Analytic Skills; Learning
Outcome: Compare and contrast different recruitment methods)

1. First, how would you recommend that the Al Nazafa Cmpany goes about reducing the
turnover in their stores? The students should base their responses on the information
presented in the advertising section of the chapter, and their response should include placing
and constructing ads that will attract candidates who will find the job attractive.
2. Provide a detailed list of recommendations concerning how the Al Nazafa Company
should go about increasing their pool of acceptable job applicants, so the company
attracts more highly qualified workers. Include fully worded online and hard-copy
advertisements and recommendations regarding any other recruiting strategies they
should use. The students should review the section on outside sources of candidates, and
their responses should include advertising and the possible use of employment and/or temp
agencies.

TRANSLATING STRATEGY INTO HR POLICIES AND

PRACTICE: THE KAMCO CASE

In teams or individually, answer the following questions:

1. Given the company’s stated employee preferences, what recruiting sources would you
suggest they use, and why? One of the first new initiatives adopted by KAMCO was to
launch an external recruitment website (see:
http://www.kamconline.com/JobSearch.aspx?language=en). The new recruitment source
allows prospective employees to view jobs available at the company, as well as to apply for
employment following a simple online data entry process. According to the HR director, the
external recruitment website is the first place he looks during the recruitment process. The
company also conducts headhunting activities and relies on employee referrals to recruit
highly specialized employees. Should any of these recruitment sources fail to identify
qualified new hires, KAMCO turns to an employment agency for help. However, outsourcing
is used whenever all other options have been exhausted.

2. How would you suggest KMACO measure the effectiveness of their recruiting efforts?
KAMCO tracks the basic costs incurred during their recruitment efforts. Data is collected on
the source of the recruitment (such as online job postings, print ads, job banks, or referrals);
and the costs associate with the (1) screening process (such as time and expense
administering cognitive, job knowledge or situational judgment tests); (2) interview process
(such as travel expenses, time spent scheduling interviews, as well as the cost associated
with allocating staff members involved in the interviews); and (3) hiring process (such as cost
associated with finalizing the hire, notifying those that were not hired, referral fees,
background investigations and reference checks, medical tests and orientation, benefits
enrollment, computers, mobile phones and so forth). This data is collected and stored in a
folder by year. Currently, the KAMCO HR score card reports the (1) number of applicants per
recruiting source; and measures the (2) costs associated with the screening, interviewing,
and hiring processes for each applicant).

KEY TERMS
applicant tracking systems Online systems that help employers attract, gather, screen,
compile, and manage applicants

application form The form that provides information on education, prior work
record, and skills

computerized forecast The determination of future staff needs by projecting a firm's

sales, volume of production, and personnel required to maintain
this volume of output, using computers and software packages

Employee recruiting finding and/or attracting applicants for the employer’s open
positions.

employment or The process of deciding what positions the firm will have to fill,
personnel planning and how to fill them

job posting Posting notices of job openings on company bulletin boards is an

effective recruiting method.

on demand recruiting These services provide short-term specialized recruiting services

services (ODRS) paid for by the hour or project, rather than on a percentage fee

personnel replacement Company records showing present performance

charts and promotability of inside candidates for the most important
positions.

position replacement A card prepared for each position in a company to show possible
card replacement candidates and their qualifications.

qualifications inventories Manual or computerized systematic records, listing employees'

education, career and development interests, languages, special
skills, and so on, to be used in forecasting inside candidates for
promotion.

ratio analysis A forecasting technique for determining future staff needs by

using ratios between sales volume and number of employees
needed.

recruiting yield pyramid Calculating and using the historical arithmetic relationships
between recruitment leads and invitees, invitees and interviews,
interviews and offers made, and offers made and offers
accepted.

scatter plot A graphical method used to help identify the relationship

between two variables.

succession planning The process of ensuring a suitable supply of successors for

current and future senior or key jobs.

trend analysis Study of a firm's past employment needs over a period of years
to predict future needs.