Case Analysis: Recruitment of a Star

PROBLEM STATEMENT To recruit a suitable replacement for RSHs star analyst Peter Thompson PESTC Analysis Political Nil Economic: Increased shuffling of jobs.

Social: The environment required rigid competencies, high stamina, great communication skills, and frequent client interaction. The industry average retirement age was approximately 45 to 50.

Technological: Intensive use of technologies in research. Due to high competition, staying updated with latest technology provided the edge for firms against its competitors. Many analysts were expected to provide prompt response to clients needs and come up with latest financial instruments benefitting both company and clients. SWOT of RSH: Strengths:1. Work culture- Many analyst and industry experts believed that RSH work culture was one of the main competitive advantages. This is so as the company gave space to its analysts to work and allowed and encouraged team work. This ensured the employees felt secured about their job thereby addressing the employees need for safety and social needs. 2. Working in team helped to co-ordinate and achieve more. The employees felt that being part of a team served them well. The company hence satisfied their need for affiliation.

3. The interpersonal relations among employees were good and ensured harmony among them. 4. With seniors helping juniors learn about the industry the work culture was informal and the development process addressed employees need for achievement and selfactualization. 5. Both the company and the employees believed that the quality of the research and success of the department depended on team work. The employees displayed OCB and there was a high employee engagement. This ensured that the productivity of the department was high and also the employee turnover was low. 6. The awards at RSH were on performance of individual and teams performance. Hence the employees experienced equity at RSH. This led to loyalty of employees towards the company. Weaknesses:1. They dont have any back up options for their semi-conductor senior analyst. As the employee turnover is low the company takes long time to fill the vacant position. 2. Being a big firm and to avoid attention of other companies towards a vacant position they have to rely on third party recruiters. This is time consuming. 3. The company finds it difficult to find people who can match the talent requirement and also fit into companys team culture. Opportunity:1. Upcoming deal with Power Chip Company Threats:1. Rival companies poaching talent pool of RSH. 2. Heavy dependence on one analyst for the semi-conductor.

SWOT for Peter:Strengths:1. High analytical skills and a sharp mind for stocks. 2. Go getter, dependable to assign work. 3. Proactive. Took lead in taking projects. 4. Star performer both with clients and at II. 5. Attracted many clients owing to his intelligence. Weaknesses:1. Lone worker. Other team members grew uncomfortable working with him. 2. Very competitive nature that made team members feeling unsecured in his presence. Threats:1. Peters departure from the firm might cause RSH to lose some customers. 2. With a big deal coming up with Power Chip Company, loosing Peter at this time can harm the prospects of the deal. 3. The market being very competitive will try to lure other analysts and assistants from RSH causing further problems for RSH. Factors: Ability to build relations with Sales force, traders and buy side Willingness to work in teams and guide junior analysts Access to upper management in companies Achieving, go getting attitude Analytical Skills Communication skills Industry knowledge Institutional Investor rankings

Writing of reports Client oriented service (accessibility and responsiveness) Stock selection Industry connections

Critical Factors: Ability to build relations with Sales force, traders and buy side Willingness to work in teams and guide junior analysts Access to upper management in companies Industry knowledge Institutional Investor rankings Client oriented service (accessibility and responsiveness) Writing of reports Stock selection Industry connections

Constraints Company cannot commit to give anyone fixed salary as Semi conductor industry is a very volatile industry. It experiences different amount of growth year by year.

SWOT of Individual candidates:David Hughes STRENGTHS Celebrity in Wall Street Ranked 1st four times, 2nd five times and 3rd or runner-up for six times Vast industry knowledge and rare interpersonal skills Close relations with client Team player and excellent mentor OPPORTUNITIES Expand the client base on his reputation THREATS Change of his personal priorities Might retire soon WEAKNESSES Growing old Unable to fully use technology Relies heavily on assistants

Better guidance of junior members in the firm Takes the work as a new challenge which can get the best out of him

Lacks stamina to do work

Gerald Baum STRENGTHS Highly enthusiastic in semiconductor industry Ranked 11th within 18 months of joining as per II. Exceptional work and client service Great skill set as what industry needs Maintains active travel schedules and replies promptly OPPORTUNITIES Already a star and expected to rise in ratings in future. Enjoys working at large institutions, hence can leverage the resources provided by the company. THREATS Will switch company if paid higher Spoil the existing team building process Less respect for organization culture. WEAKNESSES Changed companies before landing at Gotz and Loeb Negative attitude towards employer and co-workers. Mistreats his subordinates Compensation as reward and source of motivation

Sonia Meetha STRENGTHS Recognized as up-and-comer by II Technical and sales background Excellent writer Emphasizes on global markets Dedicated towards career More emphasis on culture which is a WEAKNESSES Worked for a small company (WSH) Needs lot of flexibility Not willing to travel

key feature of RSH OPPORTUNITIES High potential to become high ranked Can get many clients with her connections THREATS May not be able to cope up with fast track work Changes her priority to parenthood

Seth Horkum STRENGTHS Rated as runner up in II Close contact with Buy side Loyal to firm Experienced in networking with sales and trading. Dedication towards work Highly confident to grow up in rankings OPPORTUNITIES Right platform to achieve star status in II. Makes maximum use of resources available at the firm THREATS Could be misused Could be attracted other firms WEAKNESSES Needs to improve on report writing Got ranked for the first time

Reena Shea STRENGTHS Good technological expertise Well versed with organization culture Continuous improvement demonstrated in work OPPORTUNITIES Fast adaptability to changing WEAKNESSES Relies on senior analyst in technology group Introvert and less assertive Not recognised by II THREATS Mistake prone

atmosphere. Growing experience in industry.

Higher management not willing to accept her as a replacement.

Analysis of Critical Factors:Critical Factor Gerald Baum David Hughes Ability to build High relations with (regarded as Sales force, star in Moderate traders and buy industry, side which makes this easy) Willingness to work in teams and guide Low Moderate junior analysts Sonia Meetha Seth Horkum Reena Shea

Moderate

High

Moderate

High

Moderate

High

Access to upper management in Low companies

High

Low

Moderate

Moderate (as higher mgmt. did not want her to be Senior Analyst but she had good rapport with middle mgmt.) High Low

Industry knowledge Institutional Investor rankings Client orientation (sales skills, willingness to travel, accessibility) Writing of Reports Stock Selection Industry Connections

High Low

Very High High

Moderate Moderate

Moderate Moderate

Low

Moderate

Moderate (Not willing to travel)

Very High

Moderate

High High Moderate

High High High

Very High Moderate Moderate

High High High

Moderate Moderate Low

Options: Replace Peter by another candidate from the 4 external candidates available. Retain Reena as a senior analyst permanently

Recommendation:-

After weighing in the pros & cons of hiring various candidates, we feel that David Hughes & Seth Horkum are the most appropriate candidates for the position of Senior Analyst. Gerald could have been a good choice but he doesnt fit well with the culture of RSH.

Reena Shea seems to be inexperienced for the position. Stephen is right in considering her for the senior analyst position of a smaller industry. This will give her the exposure & the confidence to take on future leadership roles in the organization. Out of Seth & David, Seth seems to be a better choice, though Davids experience cannot be discounted. But if long term prospects of the organization are to be taken into consideration then hiring a younger talent would prove to be more beneficial. RSHs platform could propel Seth to star rankings & make him a loyal asset for the company. Thus in our view Seth should be offered the Senior Analyst position for the semiconductor industry.