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A Study of the Recruitment & Selection Outcomes of Haier India This paper is an attempt to study the recruitment and selection procedures adopted by Haier Appliances (India) Pvt. Ltd and their subsequent effect on future employee commitment and performance.

2009

Ramashis Biswas Trainee- Haier Appliances (India) Pvt. Ltd

4/28/2009

Submitted by:

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Contents Haier Group ............................................................................................................................................................... 3

Company Profile .................................................................................................................................................... 3

Products ................................................................................................................................................................ 3

History ................................................................................................................................................................... 3

Haier India ............................................................................................................................................................. 4

Introduction .............................................................................................................................................................. 5

Recruitment & Selection ........................................................................................................................................ 5

Recruitment at Haier Appliances (India) Pvt. Ltd .................................................................................................... 5

Objective of the Study ............................................................................................................................................... 6

Methodology & Limitations .................................................................................................................................... 6

Questionnaire ............................................................................................................................................................ 7

Results & Analysis .................................................................................................................................................... 10

Hypothesis Testing ................................................................................................................................................... 13

Conclusion ............................................................................................................................................................... 14

Recommendations ................................................................................................................................................... 15

Sources .................................................................................................................................................................... 16

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Haier Group

Company Profile

Haier is the world’s 4th largest white goods manufacturer and one of China’s Top 100 IT Companies. Haier has 240 subsidiary

companies and 30 design centers, plants and trade companies and more than 50,000 employees throughout the world. Haier

specializes in technology research, manufacture industry, trading and financial services. Haier 2006 global revenue was

RMB107.5 billion.

Guided by the business philosophy of CEO Zhang Ruimin, Haier has experienced the development stages, noted as Brand

Building, Diversification and Globalization. At the 21st anniversary of the founding of Haier Group on December 26, 2005, Haier

announced its 4th strategic development stage of global brand building. In 1993, Haier brand was officially recognized as a

famous brand. In 2006, Haier brand was valued at RMB74.9 billion. Since 2002, Haier has consecutively been ranked first in the

row of China’s most valuable brands for manufacture of 18 products, including refrigerators, air conditioners, washing

machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances. Haier was ranked first of

China’s Top 10 Global Brands by China State Bureau of Quality and Technical Supervision (CSBTS) for refrigerators and washing

machines. On August 30, 2005, Haier was ranked 1st of China’s Top 10 Global Brands by the Financial Times.

Products

Haier’s product categories range from refrigerators, refrigerating cabinets, air conditioners, washing machines, televisions,

mobile phones, home theatre systems, computers, water heaters, DVD players and integrated furniture, among which 9 are

ranked market leaders in China, and 3 are ranked among the top 3 worldwide in their respective industries. Haier is also a world

leader in the technology domains of intelligent integrated home furniture, networked home appliances, digitalization and large

scale integrated circuits.

By April 2006, the Haier Group has obtained 6,189 patented technology certificates and 589 software intellectual property

rights. Haier’s proposal for safe care water heater technology initiative was accepted at the 66th IEC Conference in 2002 and

Haier dual drive washing machine technology was included in the 2006 IEC standard proposal.

History

Haier was founded as Qingdao Refrigerator Co. in 1984. With China opening up to world markets, foreign corporations began

searching for partnerships in China. One of these, Germany's Liebherr Group, entered into an agreement with Qingdao

Refrigerator Co., offering technology and equipment to its Chinese counterpart. Refrigerators were to be manufactured under

the name of Qingdao-Liebherr. Combined with Zhang's disciplined management techniques, which broke from the tradition of

the Iron rice bowl in Chinese state-owned enterprises, the company began to turn around. By 1986, Qingdao Refrigerator had

returned to profitability and sales growth averaged 83 percent per year. With sales of just CNY ¥3.5 million in 1984, sales

rocketed to CNY ¥40.5 billion by 2000; a growth of more than 1,150,000 percent.

Having diversified its product line beyond refrigerators, the company adopted a new name in 1991. Borrowing from the German

name of its partner, "Haier" came from the last two syllables of the Chinese transliteration of Liebherr .Qingdao Haier Group

was further simplified in 1992 to Haier Group, the company's current name.

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In 1995 Haier bought out its chief rival in Qingdao, Red Star Electric Appliance Factory. In 1997, the company moved into

television manufacturing with the acquisition of Huangshan Electronics Group. By the end of the 1990s, Haier was the most

recognized brand in the country with products ranging from mobile phones to computers; it had also captured a dominant

market share in its core white goods division.

Its place in the domestic market secure, Haier moved onto the international stage with the goal of building a global brand name.

The company opened a production facility in Indonesia in 1996, and the Philippines and Malaysia in 1997. Haier's move into the

U.S. market was cautious at first; it focused upon two niche markets in compact refrigerators and electric wine cellars. Both

markets were underdeveloped, but Haier believed that they both had growth potential and were being largely neglected. The

company's sales figures soon proved this belief correct, allowing Haier to firmly establish itself in its US niche.

Haier continued its expansion into other international markets as well. Production facilities were constructed in Pakistan in 2002

and Jordan in 2003, greatly strengthening its position in the Middle East market. In Africa, Haier has plants in five countries:

Tunisia, Nigeria, Egypt, Algeria and South Africa. The company also purchased a factory in Italy, as part of its continued drive

into the European market. Haier has been successful in placing its products in most major European retail chains, either under

its own brand or under OEM agreements with foreign partners. Currently Haier is about to enter into a joint venture agreement

with the government of Venezuela.

As of 2008, Haier has surpassed rival Whirlpool as the world's top refrigerator producer in terms of sales, according to

Euromonitor, the world's leading independent business intelligence provider. Haier said it sold 12 million refrigerators

worldwide last year, up 20% over the previous year. Its market share reached 6.3% globally.

Today Haier is one of the leading brands globally, as well as one of the most respected. A recent survey by Forbes.com has

ranked Haier 14th among the top 200 most respected companies in the world.

Haier India

Haier Appliances (India) Private Limited is a wholly-owned subsidiary of Haier Group. Haier India was launched in India in

December 2003 and by August 2004 had an all-India promotion launched with over 55 products across six product categories --

refrigerators, color television/DVDs, washing machines, microwave ovens and dishwashers. Haier India has also launched its

brand of mobile phones in India.

The India launch was started with innovative products which were designed keeping the day to day customer needs in mind --

products that will transform the customer's everyday living into inspired living. Haier India launched BMR technology for the

first time in India. Even the Double Drive is a newly patented technology.

The India operations already has an established dealer network of approximately 1600 dealers all over the country, which is

backed by a strong service and after sales service network.

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Introduction

Recruitment & Selection

Both recruitment and selection are two phases of the employment process. Recruitment involves interesting and attracting

candidates for a certain job profile, while selection is concerned with choosing the right candidate for the job. The first step is

the creation of a talent pool through proper recruitment procedures, which subjected to selection procedures gives the most

suitable candidate for a given job profile.

It should be noted that recruitment is a positive process i.e. encouraging more and more employees to apply while selection is a

negative process as it involves rejection of the unsuitable candidates.

Moreover no contract is established during a recruitment procedure, while selection results in a contract of service between

the employer and the selected employee.

Recruitment at Haier Appliances (India) Pvt. Ltd

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Objective of the Study

The study aims to analyze the recruitment policies of Haier Appliances India by taking feedback from existing employees, and

correlate the same with their performance in the company. The main objective of the study is to eliminate redundancies in the

recruitment process, if any, and streamline the same so as to facilitate the recruitment of candidates better suited to a given job

profile.

By analyzing the selection procedures a candidate had to go through and mapping it against his/ her performance, we can find

out what additional selection procedures are required so as to successfully test future applicants for a given job profile and

ensure that deficiencies and consequent training costs are at a minimum.

Methodology & Limitations

The study was carried out on the basis of the following questionnaire. The sample size chosen was 10, and the respondents

were spread out over different departments so as to maintain generality. The respondents were chosen so as to belong to

grades L-5 and below. The sampling was random, and non-anonymous.

Due to the non-anonymity, a degree of biasness might have crept into the answers, and it was noted that most candidates were

hesitant in giving negative answers.

The questionnaire data is primary in nature, and was conducted as a survey.

For the analysis, the ratings of individual candidates were obtained from their performance appraisal for the year 2008 and

were tested for inter-correlation with the following factors:

1. No. of Interview Rounds faced

2. No. of Interviewers

3. Perceived difficulty of the process

4. Perceived competition

5. Research done about Haier prior to recruitment

Lastly, the sample size being relatively small, this study is at best indicative.

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Questionnaire

Name

Designation Department

Date:

Prior Work-Ex Yes

No

If yes, duration in years:

1 How did you first come to know about Haier?

a Consultancy

b Website

c Job Portal

d Friend's Company

e Commercials

f Other

2 What was the most important factor for you applying to Haier? (Tick One)

a Reputation of Company

b Compensation Offered

c Location

d Future Growth Prospects

3 Do your current roles & responsibilities live up to your expectations?

a Strongly Agree

b Agree

c Neither Agree nor Disagree

d Disagree

e Strongly Disagree

4 How did you apply to Haier? (Tick One)

a Consultancy

b Online CV submission

c CV was forwarded by a friend

d Direct Call from Company

5 What are the application processes that you'd had to go through? (Tick all that apply)

a Application Form

b Aptitude Test

c Psychometric Test

d Group Discussion

e Personal Interview(s)

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6 Were separate interviews conducted for HR and Technical rounds?

a

Yes

b No

7 How many rounds did you have to face in the entire recruitment procedure?

a 1

b 2

c 3

d 4

e Greater than 4

8 How many interviewers did you have for the entire recruitment process?

a 1

b 2

c 3

d 4

e More than 4

9 Did the interviewer inform you about the job profile and responsibilities?

a

Yes

b No

10 In your opinion the recruitment process is:

a Very Tough

b Tough

c Just right

d Easy

e Extremely Easy

11 How confident were you of getting this job?

a Very Confident

b Confident

c Neither Confident nor Nervous

d Nervous

e Very Nervous

12 I had intense competition for my job

a Strongly Agree

b Agree

c Neither Agree nor Disagree

d Disagree

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e Strongly Disagree

13 I spent time researching about Haier before my interview:

a Strongly Agree

b Agree

c Neither Agree nor Disagree

d Disagree

e Strongly Disagree

14 In my opinion, the recruitment process was comprehensive & tested me on all possible areas:

a Strongly Agree

b Agree

c Neither Agree nor Disagree

d Disagree

e Strongly Disagree

15 In my opinion all of my colleagues who got through the recruitment process are equally competent

a Strongly Agree

b Agree

c Neither Agree nor Disagree

d Disagree

e Strongly Disagree

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20%

60%

20%

How did you apply to Haier?

Consultancy

Online CV submission

CV was forwarded by a friend

Direct Call from Company

30%

10%

0%

40%

10%

10%

How did you first come to know about Haier?

Consultancy

Website

Job Portal

Friend's Company

Commercials

Other

17%

8%

25%

50%

What was the most important factor for you applying to Haier?

Reputation of Company

Compensation Offered

Location

Future Growth Prospects

10%

40%20%

20%

10%

I spent time researching about Haier before my interview:

Strongly Agree

Agree

Neither Agree nor DisagreeDisagree

Strongly Disagree

Results & Analysis

1. Candidate Sourcing

70% of the respondents first came to know about Haier either from a friend who was working here or from a consultancy.

Moreover 60% of the respondents had their CVs forwarded by a friend who was working here.

As an employer Haier has a fairly limited recognition. This is the primary reason why candidates have not actively sought out

Haier as a place to work in. Also due to the limited number of applicants, the recruitment process has significantly

underachieved. Not to mention, the limited talent pool restricts the choices in terms of candidates and thus might result in the

ultimate selection of candidates who might not perform according to expectations in future.

2. General Awareness & Reasons for Applying

50% say that they applied to Haier for future growth prospects. And 33% also

feel that the location and compensation offered was the major factor. Only

17% of the respondents actually applied to Haier because they wanted to work

with the Brand. Moreover, 50% of the candidates spent little or no time

researching about Haier prior to their interview.

Once again demonstrates how limited Haier’s recognition as a brand is.

The fact that very few have chosen Haier because they wanted to work

with the brand, reflects a disturbing statistic which is indicative of the level

of interest of future employees. Moreover, the fact that half of the

candidates spent little or no time researching about Haier seems to

indicate a general casualness prevalent among current employees about

their employer. By extension, it would be only logical that future and

prospective employees would have a similar mindset.

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100%

0%

Did the interviewer inform you about the job profile and responsibilities?

Yes

No

20%

30%40%

10%

0%

Do your current roles & responsibilities live up to your expectations?

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

60%

40%

Were separate interviews conducted for HR and Technical rounds?

Yes

No

30%

30%

20%

20%

0%

How many rounds did you have to face in the entire recruitment procedure?

1

2

3

4

Greater than 4

30%

30%

20%

10%

10%

How many interviewers did you have for the entire recruitment process?

One

Two

Three

Four

More than Four

3. Job-Briefing and Candidate Satisfaction

While all the respondents say that they had been briefed about their job responsibilities, 50% are either undecided or do

not agree with the assessment that their responsibilities live up to their expectations.

The job-briefing at Haier Appliances (India) Pvt. Ltd. needs reconsidering. Employee motivation can seriously suffer if they

find themselves in a situation where their current responsibilities do not match up to their expected ones. The

disillusionment with the current employer is one of the main reasons of underperformance and attrition.

4. The Selection Process

40% of the respondents say that separate HR and Technical interviews

were not conducted. Further, 30% were selected by a single interviewer,

and 60% had to face 2 or less interviewers throughout the entire selection

process. Also, 30% were selected on the basis of a single round of

interview, while, 60% were selected on the basis of 2 or less.

This section indicates another very disturbing trend. Separate interviewers

are required to test candidate competencies in different fields. While the

HR manager is more than capable of judging how well a candidate is suited

to work in an organization, it’d take someone extraordinarily capable to

actually test the functional knowledge of the candidate as well.

Moreover, a candidate selected on the basis of a single round of interview

leaves room for doubt as to the quality of the overall candidate. In this

case, when it is coupled with the fact that 30% of all candidates were

selected on the basis of the impression of a single interviewer, this has

very dire implications indeed.

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0%

40%

50%

10% 0%

In your opinion the recruitment process is:

Very Tough

Tough

Just right

Easy

Extremely Easy

20%

40%10%

20%

10%

I had intense competition for my job:

Strongly Agree

Agree

Neither Agree nor DisagreeDisagree

Strongly Disagree

20%

60%

10% 10%

0%

How confident were you of getting this job?

Very Confident

Confident

Neither Confident nor Nervous

Nervous

Very Nervous

40%

20%

40%

0% 0%

In my opinion all of my colleagues who got through the recruitment process are

equally competent:

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

30%

50%

10%

0%10%

In my opinion, the recruitment process was comprehensive & tested me on all possible

areas:

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

5. Candidate Perception of the Selection Process

Only 40% of the respondents feel that the recruitment process is tough. 60% feel that it is okay or even easy. Also, 80% of

the candidates were either Confident or Very Confident of getting the job. Further 40% feel that they had little or no

competition for their job.

Even from the employee’s perspective, the recruitment

process is perceived to be fairly easy. Their selection in Haier

has failed to provide them with a sense of accomplishment.

By extension, as has already been indicated, their attachment

towards Haier should be lower than optimum.

Also, in the absence of competition, employees tend to

become overconfident and complacent, leading to a

consequent decrease in performance.

6. Employee Perception of the Effectiveness of the Selection Process

Only 30% of the candidates felt strongly that the recruitment process was comprehensive and tested them on all possible

areas. Further 40% were undecided when asked if their colleagues who had gotten through the recruitment process were

equally competent.

As is evident, the employees themselves aren’t too certain of the quality of the recruitment process. Moreover their

mistrust extends to some of their colleagues. With respect to team-work and commitment, this is a potentially dangerous

situation that should be tackled immediately.

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Hypothesis Testing

A standard correlation test was carried out for testing the hypotheses. The results are detailed below:

Rating No. of Interview Rounds No. of Interviewers Difficulty Competition Research

Rating 1

Interview Rounds 0.875951 1

No. of Interviewers 0.465773 0.198766606 1

Difficulty 0.210526 0.563111347 -0.340372823 1

Competition 0.824061 0.624695048 0.207317073 0.19705795 1

Research 0.649184 0.498904975 0.482104426 0.157377895 0.549063374 1

The results show moderate support for research performed prior to recruitment as one of the factors that can predict

performance of an employee, and strong support for number of interview rounds faced and perceived competition. Perceived

difficulty and number of interviewers had very little support.

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Conclusion

The results indicate that Haier as an employer has limited recognition. Most of the recruitments happen through referrals, and

candidates actively seeking out and applying to Haier is a rarity. Moreover the analysis suggests that in general candidates were

not too excited about working at Haier. Their reasons for applying to Haier were for the greater part not related to the

reputation of the company. Also, the fact that a majority spent little or no time researching about Haier suggests that people do

not exactly perceive Haier to be a dream company. This can lead to de-motivation, high rates of attrition, and decrease in

employee commitment and efficiency.

Also, the recruitment process is perceived to be extremely easy. The fact that a significant portion of the candidates were

selected on the basis of a single person’s recommendation is extremely disconcerting and should be looked into. This is further

justified by the candidates themselves who were not only confident of getting the job, but perceived a distinct lack of

competition for the same. The lack of a sense of achievement and competition can again lead to complacency, lack of

motivation and thus affect the performance of the employees. Moreover, there is a latent sense of discontent as a significant

portion feel that their colleagues who got through the recruitment process might not be equally competent. From the study this

seems logical as only a small percentage feel that the recruitment process was comprehensive and tested them on all possible

areas.

The results of this study are even direr if we account for the fact that the questionnaires were non-anonymous and were filled

up in public. The respondents had a middle-point or “neutral” answer to choose from and the sheer number of such neutral

responses indicate that the respondents chose the “diplomatic way out.” This also indicates that there is lack of proper

communication between the employees and the management and employees believe that feedback might lead to

complications of punitive actions.

Finally, the correlation testing indicated that candidates who have been selected on the basis of a single round of interview

were more likely to perform poorly as compared to candidates who had been selected on the basis of multiple rounds. The

majority of these candidates were also the ones who perceived the process to be very easy.

While it cannot be determined whether their poorer performance results from a low competency level or a lack of proper

motivation, the fact remains that the more stringent a recruitment process, the better the chances of a selected candidate

performing up to expectations.

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Recommendations

Based on the results and observations of the study, an overhaul of the recruitment process is strongly recommended. Some of

the major suggestions are:

• Separate rounds of interviews to test candidate competencies in Technical as well as HR fields.

• Expand the candidate pool.

• Increase recognition of Haier as an employer through Commercials, Job Fairs, etc.

• Make the selection process tougher by introducing multiple rounds of assessment.

• Ensure that a candidate is assessed by at least 3 people, preferably over two or more rounds. One of the interviewers

should ideally be someone from a related discipline.

• Reduce referral recruitments. Except for a few cases, recruitments should focus on recruiting candidates who are

genuinely interested in working for the company.

• Introduce measures to facilitate effective communication between the employees and the management.

• Increase employee engagement exercises.

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Sources

1. http://www.haierindia.com/

2. http://www.wikipedia.org/

3. http://www.naukrihub.com/

4. Google