HRM Assignment: XYZ Limited

Neha Gupta

10 DM091

Section-C

Q. If Chaudhari had been an external candidate, would he have got the job? As an internal candidate,
did he deserve to be treated in a different fashion?

A. Had there been no candidates from within the organization eligible to take the job or any better
external candidate other than Mr. Chaudhari himself, he would have definitely got the job as:

 He met the specification of minimum of five years of work experience.

 Was an able employee and could prove himself and his credentials in the interview (as in
substantiated in the case that he performed really well in the interview and was found suitable
for the job).

Even though XYZ Limited had, in policy, a procedure to fill in vacancies from within the company, it
failed to identify and capitalize on the talent within the organization which showcases a clear lapse on
the company’s recruitment procedure and talent management practices. Further, since there were no
stipulations with the advertisement that no internal candidates from the company can apply for the
vacancy, Mr. Chaudhari definitely did not deserve to be treated in a different fashion so as to give a
fair chance to all those eligible, including himself.

Q. Did the management make a mistake in calling Chaudhari for an interview and selecting him,
when he was ‘too junior’ in the organization?

A. The management didn’t make a mistake in calling Mr. Chaudhari for the interview and offering
him a job as:

 He did meet the minimum specifications for the job ( had four years of work experience in his
previous organization and one year of experience in XYZ Limited)
 Was an able employee and he performed really well in the interview.
 He was an internal employee and having spent one year in the organization already, he knew
the organization better than any candidate from outside and therefore had the right to be
considered with them for the post of Assistant Engineer.
 No where it was mentioned that the minimum five years of work experience had to be in XYZ
Limited itself.

But the existing Junior Engineers who had one year of work experience had seen Mr. Chaudhari join
the organization in the similar position (junior engineer) as theirs.

 They felt they carried one extra year of work experience than Mr. Chaudhari in XYZ Ltd. and
therefore should be given an equal/better and not a less platform.
 They felt that they were being discriminated.
 They felt demoralised.
 To show their resentment, they were ready to leave the organization if Mr. Chaudhari joined
as the Assistant Engineer.
Q. Are there any drawbacks in the recruitment/promotion policies of the company?

A. The existing policy of recruitment/promotions has the following pros:

 It gives due consideration to internal employees over external recruits at the time of filling up
a post.
 Only when no candidates from within the organization are found eligible, is an open
advertisement released.
 It’s cheaper and saves the cost of training and induction.
 The existing employees know the organization well and have strong loyalty towards the
organization.
 This method of internal recruitment increases the job satisfaction.
 The existing employees are not pressed to look for opportunities in the external job market
and therefore it reduces the employee turnover rate.

The cons of the system are as follows:

 Provides no incentives for good performance/competency as promotion is done on the basis

of seniority, therefore promotes a laid back attitude.
 Doesn’t encourage fresh talent and competition in the organization and therefore makes the
job, less challenging than it would be with external recruitment.
 One important pro of external recruitment is that it increases the popularity of the
organization in the job market which reduces if only internal recruitments are given
preference.

I would like to make the following suggestions in this regard:

 When promotions take place, the experience that an internal candidate had prior to his
experience in XYZ Ltd. should not be neglected and should be taken into account for the
promotion. This was done in case of Mr. Chaudhari but wasn’t appreciated by the other
internal employees. So the following action is recommended:
 The policy should clearly mention that overall years of work experience
would be considered when minimum work experience is stated, else
otherwise stated.
 Even during internal promotions the employee should have spent at least 1
year in the organization (apart from his experience before the current
organization), so that he knows the organization well when treated at par
with the other internal candidates.
 Internal employees should not be evaluated for promotions not just on the basis of the years
of work experience (E.g. 5 years of work experience as Junior Engineer to become an
Assistant Manager), but also on the targets achieved and their past annual performance in the
organization. This would promote competition in the organization and would continuously
increase the efficiency of the existing employees thereby increasing the efficiency of the
entire system.
 Internal employees should be given an edge over the external employees if both are equally
able, not otherwise. This would encourage competency.
 At the same time holding all candidates i.e. internal and external to the same hiring criteria
can help prevent problems and claims of unfair treatment or discrimination.