Recruitment and Selection within the Mining Industry - Case Study Example

Recruitment and Selection Name: Course: Tutor: Date: Executive Summary IronStrong is facing difficulties in attracting appropriate specialist engineers to fill existing vacancies. Additionally, the company is having difficulty in sustaining the current bunch of employees. There are high chances that these difficulties could be attributed to a number of external environmental and organisational factors including supply and demand of labour, the labour market, competitors, organisation’s image and political-legal-social environment. Some of the options deemed available to improve IronStrong RSP efforts include the recruitment process, implementing quality management practices, and the impact of culture and selection practices. This report also states the procedures to be followed by IronStrong when recruiting, selecting and placing specialist engineers. These include job description, job specifications and choice of method. Introduction Recruitment and selection are defined as the sequence and chain of activities pertaining to attracting, screening, and hiring qualified and suitable candidates for a particular job. Virtually every entrepreneurial organisation has some properly defined recruitment and selection policies. In many organisations, the responsibilities of recruitment and selection of employees are usually delegated to the human resource department. Basically, the objective of recruitment and selection process is to pair up the inclinations and capabilities of the prospective job candidates (Roberts, 1997). The pairing up process is carried out against the inherent rewards and demands of a given job. The aim of this report is to analyse recruitment and selection within the mining industry, specifically the Australian mining industry. The analysis to be carried out will concentrate on IronStrong, a mining company in Western Australia. It is worth noting that mining is not only a significant contributor but also a primary industry in the Australian economy. It is also worth pointing out that there are different minerals and ores mined throughout Australia. For instance, globally, Australia has the largest known deposits of recoverable uranium and the largest reserves. Uranium reserves are found in South Australia, Western Australia, Queensland, and the Northern territory. Australia also produces 22 percent of uranium globally. This is only second to Canada which produces 29 percent of uranium in the world. Historically, mining booms have also led to immigration to Australia (Ellison, 2009). The methods applied to gather facts and data and recommendations used to compile this report are derived from credible written literature. The external environmental and organisational issues likely to be affecting IronStrong’s RSP efforts An organisation’s recruitment function, IronStrong mining company in this case, is affected by an assortment of various external and internal factors. The internal factors are those factors that can be influenced by the organisation. The external factors on the other hand are those factors which the organisation has no control over. That is, external factors to an organisation are those factors that are influenced by external forces or the external environment. This report centres on the external environmental and organisational issues likely to affect IronStrong’s RSP efforts. Some of the external environmental and organisational factors likely to affect ironStrong RSP efforts include the labour market, the organisation’s goodwill, the political-social legal environment, the rate of unemployment and competitors (Catano, 2009; Harris, 2005; Billsberry, 2007; Durai, 2010). These factors could be further expounded as follows detailed next. Supply and Demand Supply and demand could be one of the factors affecting IronStrong’s RSP efforts. It is worth noting that the availability of labour both within and outside the organisation is a significant determinant in the recruitment process (Harris, 2005). For instance, IronStrong has a high demand for engineers considering the few applications they receive in relation to vacancy advertisements as well as a high turnover rate on the same. It can thus be deduced that the high demand for these engineers coupled with their scarce supply is likely to affect IronStrong’s RSP efforts. Labour Market The labour market also plays a crucial role in shaping up the recruitment process. That is, the prevailing condition of employment within the community within which IronStrong is based is likely to affect its RSP efforts. If at the time of recruitment there is a surplus of manpower, then, even informal efforts to attract applicants like announcements in meetings and notice board displays are likely to attract a substantial number of applicants (Catano, 2009). Organisation’s Goodwill The employer’s image can employ a key role in attracting potential job candidates. An organisation with a positive goodwill and image will find it easier to attract and retain employees as opposed to one with a negative goodwill and image. It should be noted that a company’s image is to a significant degree determined by its operations. Further, the organisation’s image is pretty much influenced by the industry within which the organisation operates (Billsberry, 2007). Political – Social - Legal Environment Various measures by the government to regulate the industry could impact IronStrong’s RSPs efforts. For instance, in Western Australia, uranium mining was banned since 2002 and was only lifted 17th November 2008. At the national level, both the Federal Coalition and the Federal Labour parties advocate for development of the uranium industry. However, the decision to issue licenses to mine uranium is made and granted within the residual jurisdiction of each state government. The lifting of the ban on uranium mining therefore was attributed to a state election held on 2008 in Western Australia (Paladin Energy Limited, 2011; Ellison, 2009). It can thus be deduced that the mining industry is volatile to some degree depending on the political and legal environment. This could hamper IronStrong’s RSP efforts as prospective engineers could be apprehensive about taking up job offers due to the inherent uncertainties. Rate of Unemployment Economy could also be one of the factors likely to affect availability of potential job candidates with regards to IronStrong. A rise or dip in the economy is likely to affect availability of prospective job candidates in the sense that it leads to either oversupply or undersupply of the labour force. For instance, a dip in the economy hinders an organisation from creating additional jobs due to financial constraints. Consequently, failure to create new jobs leads to oversupply of qualified manpower which in effect leads to unemployment. On the flipside, a vibrant economy leads to more jobs whose ripple effect is scarcity of labour (Catano, 2009). Competitors Another factor that hinders IronStrong’s RSP efforts is its competitor’s recruitment policies. In an environment that is becoming increasingly competitive, IronStrong might be faced by competitors whose corporate strategies might entail effective and attractive recruitment policies. To this end, the organisation, might find itself in a situation where prospective employees are attracted to its competitors. Incidentally, IronStrong could experience high labour turnover due to the fact that its competitors’ recruitment and organisational policies might be more appealing (Durai, 2010). Options that may improve IronStrong’s RSP practices and policies to result in a better outcome IronStrong’s RSP practices and policies have brought about a poor outcome in the sense that the company attracts low applications from potential employees. Incidentally, the organisation’s top management expresses displeasure at the new recruits. Sustaining the current lot of employees has also been an issue as shown by the high rate of job turnover at IronStrong. To this end, it is imperative that IronStrong introduces and incorporates RSP practices and policies that could lead to a better outcome with regards to prospective recruits. Some of the effective RSP practices and policies that IronStrong might consider introducing include the recruitment process, implementing quality management practices and being more sensitive to the impact of culture and selection practices (Heraty & Morley, 1998). The Recruitment Process According to Heraty and Morley (1998), the quality of an organisation’s fresh recruits depends on the organisation’s recruitment policies and practices. The authors further state that the relative effectiveness of the selection stage is inherently reliant upon the quality of the candidates attracted. Indeed, Heraty and Morley indicate that the more effective the recruitment phase is, the less significant the actual selection process becomes. In the event that an organisation decides to fill an existing vacancy through recruitment, then it should consider a number of points. The first phase in the process entails carrying out a comprehensive job analysis. Once an all-inclusive job analysis has been carried out, the organisation can then initiate the recruitment process in an effort to attract the best candidates for that particular vacancy. It is worth noting that one of the most outstanding outcomes of an effective recruitment and selection is a reduction in labour turnover and an enhanced employee morale. On the flipside, ineffective recruitment is costly in the sense that poor recruits deliver poor results and/or end up leaving the organisation. However, a cross-national research of recruitment practices indicates that in actual sense recruitment practices entail little or no attempts to confirm practices. Human resource managers tend to depend on feedback given to them by line managers as well as disciplinary procedures and probationary periods to get rid of mistakes. Organisations with high rates of job turnovers tend to use these to their advantage by building them into recruitment practices, that is, they do not evaluate the constitution of their labour turnover (Heraty & Morley, 1998). A number of recent studies indicate that some methods of recruitment are more effective compared to others with regards to the quality of employees recruited. While advertising through the media is a formal approach applied to attract prospective job candidates, some informal avenues like advertising through word of mouth could be equally effective. Word of mouth could be carried through the existing employees. Apart from the fact that word of mouth is relatively cheap, research reveals that it attracts employees who stay longer; that is, the rate of labour turnover is low. Along the same line, it has been shown that employees recruited through word of mouth are less likely to be dismissed. Employees recruited by word of mouth stay longer in an organisation because they have a clear idea of what the job actually entails. A review of five studies indicates that the average rate of job turnover of those employees recruited through advertising stood at 51 percent. On the other hand, the job turnover for spontaneous candidates stood at 37 percent. Finally, and more importantly, the labour turnover for those recruited through recommendations of existing organisation employees, stood at 30 percent. This therefore confirms recruitment of prospective candidates through word of mouth is more effective compared to advertisement and spontaneous applications (Heraty & Morley, 1998). A hypothesis deemed to account for the long stay of employees recruited through word of mouth in an organisation was the better information hypothesis. It was argued that prospective employees who were recommended by other existing employees were not only better, but were also more realistically informed about the job. This is in contrast to those employees who were made aware of the job vacancy through media and other avenues. Employees recommended through word of mouth were therefore in a good position to evaluate their sustainability. Prospective job candidates who are well informed are more likely to have a realistic perception of the job, the organisational culture, and the job prospects. It is worth pointing out that recruitment sources are to a significant extent linked to differences in performance of the employee, job satisfaction, turnover, and organisational commitment (Heraty & Morley, 1998). It is therefore imperative that IronStrong considers moving away from the norm and more conventional practices of attracting prospective job candidates. Considering that the top management usually express displeasure at fresh recruits with regards to performance, they might be considered as the appropriate employees to recommend engineers to be recruited. Their input in the recruitment and selection process within the recommendation perspective, might significantly contribute to enhanced and cordial work relations. Incidentally, it could lead to enhanced performance on the part of employees as well as job satisfaction due to the understanding that exists between them and the upper management. Implementing Quality management Practices Due to enhanced competitive pressure, managers today are constantly looking for ways to amplify and sustain organisational performance, and IronStrong is not an exception. Implementing quality management practices is anticipated to improve organisational performance. For these practices to be effective, it is imperative that they be standard. In some cases, organisations implement quality management initiatives with great zeal only to achieve short lived performance improvements. These organisations fail to maintain continuous improvement efforts and therefore cannot remain afloat in the long run as regards competition in their respective industries (Ahmad & Schroeder, 2002). Issues such as lack of support by the top management and empowerment of the employee, failure to develop a conducive culture, human resource management policies that are inconsistent, and so on have been identified as some of the factors contributing to failure of total quality management. IronStrong aims at improving its RSP efforts to attain better outcomes. To this end, it ought to consider making such improvements within the context of total quality management. Ideally, the process of recruitment and selection is aimed at identifying prospective job candidates who will blend in well with the organisation hiring. It is an expensive and complicated process and as such, it ought to be carried out effectively and efficiently to avoid wasting time and resources. Many organisations when carrying out recruitment of prospective employees, place an emphasis on the candidates’ hard technical skills - overlooking or paying little attention to their soft behavioural skills. However, it ought to be noted that that the soft skills are critical if quality management practices are to be effective (Ahmad & Schroeder, 2002). Regardless of the skills being applied or how sophisticated the statistical techniques are, without soft skills in employees no improvements can be sustained. Additionally, while generally training employees in tools and techniques can be fast and easy affair, nurturing soft skills can take a long time to develop. In some cases, depending on the employees’ character, developing soft skills in an employee might be impossible. It is therefore imperative that employers pay more attention to employees’ soft skills during the recruitment and selection process (Ahmad & Schroeder, 2002). The Impact of Culture and Selection Practices As highlighted earlier, the mining industry in Australia has attracted a significant number of immigrants. To this end it is essential that the issue of culture be incorporated during the recruitment and selection process. If the methods of recruitment and selection are not in tandem with the cultural expectations of prospective job candidates, then there is a higher chance of the candidates seeking employment in other organisations whose practices they can identify with (Jeanquart- Barone & Peluchette, 1999). Management researchers have discovered that culturally based differences in people’s values, attitudes, and beliefs influence the way in which they perceive management situations. For instance, a study revealed that the origin of Asian, North American and European managers significantly influenced their perceptions of how effective managers should manage. This study was incorporated with another one on managers and employees in more than 60 countries. The outcome revealed significant differences in the attitudes and behaviours of employees from various countries. National culture seemed to better explain the differences in work-related values and attitudes than did position within the organisation, gender, profession, or age (Jeanquart- Barone & Peluchette, 1999). Set of procedures for IronStrong to follow when recruiting, selecting and placing specialist engineers Job Description IronStrong ought to come up with a proper description for the specialist engineers. By a proper job description it implies that the overall purpose role of the job ought to be defined and the main tasks be outlined. A good job description is important for the success of a selection procedure since it is the basis upon which the other processes are founded. The job or personal specification, advertisement, interviewing, and assessment procedures are all reliant on the job description (Min & Kleiner, 2001). Job Specifications This specifies qualifications, experience and personal traits required from the prospective job candidate. Additionally, this segment outlines any other information deemed necessary on the special demands required by the job. Examples include unusual hours, physical conditions, travelling and so on. Job specifications should also outline terms and conditions of employment such as salaries, fringe benefits, holidays, and so on (Min & Kleiner, 2001). The information on qualifications, qualities, and experience required should be drawn from an analysis of the skills and knowledge required to execute the job. These should therefore be properly outlined. The list outlined should be as precise as possible so that during the interviewing phase the interviewee can be asked on what his/her abilities are or what he/she cannot carry out (Min and Kleiner, 2001). Choice of Method Of the methods, the seven point plan has the greater pedigree. The five fold grading scheme is less complex and emphasises on the dynamic elements of the candidate’s career. Both methods offer a good interviewing framework. However, a more simple approach applied by many interviews is to begin by analysing the required knowledge and skills, then assessing the minimum and maximum education, experience, qualifications, and training required to succeed in the job. This spills over to a specification of physical personal attributes needed and a definition of other requirements such as night or day shift work, location, age limits, cultural values, religious affiliations and so on (Min & Kleiner, 2001). Based on the procedures highlighted above, IronStrong ought to incorporate them when recruiting, selecting, and placing specialist engineers. It is imperative that IronStrong carefully considers incorporating these procedures based on the fact that they are comprehensive and cover virtually every aspect - hence effective. Conclusion IronStrong mining company’s problem is more of a human resource problem specifically emanating from its recruitment and selection policies and practices. This is attributed to the fact that not only do the company’s advertisements on job vacancies attract only a small number of applicants but the company is also faced with a high rate of job turnover. To overturn these trends, it is essential that the company introduces new policies and practices that would enable it to attract suitable specialist engineers to fill in the vacant posts. Essentially, the company ought to introduce measures that would help to sustain existing employees. Recommendations As highlighted in the report, there are other methods of recruitment that are more effective compared to others. It is recommended that IronStrong takes some of these methods into consideration and integrate them with the existing practices and policies. One of the effective methods highlighted was the recommendation of a suitable candidate by existing employees Another measure that IronStrong ought to introduce in its recruitment policies and practices is the incorporation of other cultures, religious values, and beliefs. It is important that these elements be taken into considerations as they give the employees a sense of belonging as well as motivation to perform better. It is also recommended that during the recruitment process, IronStrong should not only consider a prospective employee’s hard technical skills but also carefully scrutinise a candidate’s soft behavioural skills. By so doing, IronStrong would have a comprehensive idea on who an employee really is. Attracting candidates to fill an existing job vacancy is basically a matter of identifying, assessing, and using the most suitable sources of applicants However in cases where an organisation is facing difficulty in attracting and sustaining employees, it may be essential to conduct a preliminary study of the issues likely to attract or repel candidates. Therefore, IronStrong ought to carry out a preliminary study on where the actual problem lies so as to come up with a concrete solution. It is also recommended that IronStrong should create a structure that depicts certainty with regards to employment contracts. That is, a structure that grants employees job security regardless of the external factors such as the dynamic political and legal environment. References Ahmad, S. & Schroeder, R. (2002). “The Importance of recruitment and selection process for sustainability of total quality management.” International Journal of Quality and Reliability Management. 19(5): 540-550. Billsberry, J, (2007). Experiencing Recruitment and Selection. West Sussex: John Wiley and Sons. Catano, V. (2009). Recruitment and Selection in Canada. Toronto: Cengage Learning Durai, P, (2010). Human Resource Management. New Delhi: Pearson Education India. Ellison, M. (2009). Mining uranium in Australia: frequently asked questions. Sydeny: Uranium Focus Group. Harris, M, (2005). Managing health services: concepts and practice. Melbourne: Elsevier Australia. Heraty, N. & Morley, M., (1998). “In search of good fit: policy and practice in recruitment and selection in Ireland.” Journal of Management Development. 17(9): pp. 662-685 Jeanquart- Barone, S. & Peluchette, J. (1999). “Examining the Impact of the Cultural Dimension of Uncertainty Avoidance on Staffing Decisions: A Look at US and German Firms.” Cross Cultural Management. 6(3). Min, C. & Kleiner, C. (2001).”How to Hire Employees Effectively.” Management Research News. 24(12). Paladin Energy Limited (2011). “Australian Uranium Policies,” retrieved 27 June 2011, from http://www.paladinenergy.com.au/default.aspx?MenuID=106 Roberts, G. (1997). Recruitment and selection: a competency approach. London: CIPD Publishing. Read More