Compare and contrast the two selection strategies used by the organizations discussed in the case.

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Case: Strategic Selection: A Review of Two Companies

Managers are proactively improving the employee selection process with various strategies that will ideally enhance corporate success. Some of these strategies focus on improving the quality of the individuals who apply for work, as well as those individuals who are actually hired into the organization. Other strategies target the selection process itself and seek to improve the various activities involved in proper hiring. The overriding theme of these efforts is that the staffing/ selection function is a key component of an organization’s strategy because the process ideally provides highly motivated and qualified employees who can ultimately impact the financial and operational well-being of a company.

Hallmark Cards is one company that emphasizes selection. It recently developed a recruiting metric called a “staffing index” that enables management to track the degree to which newly hired employees are performing as expected on the job. A series of evaluations are conducted over time, and scores are compared to obtain a longitudinal perspective on the quality of the hiring decisions.66

UnitedHealth Group is another organization that has improved its selection activities with proper strategic planning and execution. The company’s Vice President of Recruitment Services decided to modify hiring procedures within the organization by splitting job candidates into two basic groups. The first group of individuals was comprised of high-level professionals who would be recruited by internal staffing specialists, while the second group included various staff and line personnel who would be acquired with outsourcing contacts. This “two-pronged” strategy enabled the company to save money through increased control and efficiency.67

These various strategic selection approaches enable companies to improve the manner in which employees are hired and placed within a hierarchy of jobs. Many other strategies could be employed in different employment situations to improve the efficiency and effectiveness of selection. Overall, these efforts should increase the degree of fit between employees and organizations and increase the completion of strategic objectives.



Compare and contrast the two selection strategies used by the organizations discussed in the case.

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