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Case: 11 The Dynamic Group: Selecting a right candidate

Questions for consideration:

Oscar has performed an job analysis in this case. What are the objectives of conducting job analysis in an organization? How are job description, job specification and job evaluation related to job analysis with regard to the procedure and the use made of each?

If you were one of the members selection panel, which of these men would you want to hire?

Mergers are trends in today's corporate environment. What are mergers? Discuss the objectives behind mergers and explain how those objectives might be accomplished.

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The Dynamic Group: Selecting a right candidate

The Dynamic Group is a progressive and aggressive company. Revenues have been increasing every year since it was founded fifteen years ago. Its headquarter is in Hong Kong, and it has major manufacturing facilities in Shenzhen and in Sri Lanka. It has been expanding rapidly abroad as well, in developing countries and in the European countries.

The company's chief executive, Mr. Alex Wong, is one of the Hong Kong's most outstanding managers and has contributed greatly to the growth of the company. His chief assistant, Mr. Oscar Tse who has the title of vice-president, had many years experience in operations research at a well known organization. In his present post, he serves as a kind of chief of staff, supervising operations research studies, mergers and acquisitions, and long-range planning.

Because of the increasing activities, co-ordination is becoming significant. Many younger recruits are joining the organization; operations are becoming more scattered geographically; and the work is becoming more diverse.

Mr. Alex Wong needs to reduce his burden of co-ordination, and he wants to be sure that further growth occurs smoothly. Hence he directs his assistant, Mr. Oscar Tse, to hire a specialist in organization planning. Oscar performed the job analysis on the newly created post and generated two statements - a job description as summarized in Exhibit 1 and a job specification as summarized in Exhibit 2. Eventually, he placed an advertisement on the South China Morning Post as shown in Exhibit 3.

Exhibit 1 - A job description

Job Title: Assistant to Chief Executive Officer
Report to: Chief Executive Officer.
Duties and Responsibilities:

  1. Co-ordinating the group's administrative matters
  2. Following-up on orders and production schedules
  3. Handling independent project assignments
  4. Preparing minutes of meetings
  5. Reviewing financial accounts
  6. Monitoring the progress of training programme
  7. Occasional business trips to the PRC required

Exhibit 2 - A job specification

Age: 28+
Education: University graduate in Management
Experience: 5 years in similar capacity
Knowledge: PRC market
Personal characteristic: Independent, self-motivated and initiative

Exhibit 3 - The Advertisement

The Dynamic Group is a major player in the manufacture and distribution of a diversified range of electronic products. The group has an established presence locally and overseas with sizable business operations in Hong Kong, Shenzhen and Sri Lanka. To cope with the group=s expanding business activities, a capable executive is urgently required to assist the Chief Executive Officer.

Assistant to Chief Executive Officer

This newly created position will assume a role with a wide scope of duties such as co-ordinating the group's administrative matters, following-up on orders and production schedules, independently handling project assignments and preparing minutes of meetings. The appointee will also be involved in reviewing financial accounts and monitoring the progress of training programmes. Occasional business trips to the PRC will be required.

Applicant should be over 28 years of age possessing a degree in management. A minimum of 5 years experience in a similar role is essential. Exposure gained in a manufacturing operation and knowledge of PRC business issues are highly desirable. Attributes sought include the ability to perform independently, a high degree of self-motivation and initiative together with a business oriented attitude.

An attractive salary and benefit package commensurate with the candidate's qualifications and experience, will be offered to ambitious executives wishing to gain valuable exposure in a challenging and progressive business environment.

Please apply in confidence with comprehensive details of work history, salary expectation and contact number to:

Executive Recruitment Division,
The Dynamic Group,
P.O.Box 3838

The response was very good. A selection panel has formed and started interviewing candidates. Eventually, the choice is narrowed down to three candidates:

  1. Candidate A has had many years experience in operations research and organization planning in IBM. During the last few years he has been in charge of the successful re-organization of a large corporation. More recently he has been working on product development. He is a good man, although not as articulate as his prospective employers.

  2. Candidate B spent several years with the MOTT and thereafter worked on the re-organizations of two major corporations, making good contributions under difficult circumstances. During the last two years he has been working as a consultant but is not happy with the variety of assignments and the heavy traveling involved. He is, therefore, looking for a new career opportunity.

  3. Candidate C has been with GAMMON whose products are somewhat similar to those of the Dynamic Group. At first he worked in the employee relations department, then in training activities, and later on mergers. He set up the organization of the international division in PRC. Now he is looking for promotion and wider opportunity.

In making the choice, the Dynamic Group must consider that the new man is to work for no more than two years on the new organization structure and the preparation of the manual. Thereafter he is to succeed the president's chief assistant, who is to go to more important responsibilities.

Suggested solution:

  1. Job analysis is a study of the specific tasks in a job and the environment in which the work is performed. It examines such things as the location of the job, duties and responsibilities, equipment used, and working conditions. The objectives of job analysis are to:

    1. provide job information for recruiting and maintaining adequate personnel;
    2. provide for long range projection of personnel need;
    3. keep tracking the future change in jobs;
    4. provide a basis for rating the value of jobs.

    Job description is a statement of the duties, responsibilities and conditions of a specific job and is the basis for selecting and training workers.

    Job specification is a statement of the personnel requirements to perform a specific job properly.

    Job evaluation is a process of rating the value of jobs to a firm.

    The relationship of each is that a job analyst gathers data in several ways: by observation of the worker, by a questionnaire filled out by the employee and/or by a supervisor, or by interview. It is possible to get many versions of what a worker actually does, depending on who provides the information. The data is then split into two statement: job description and job specification. After the job has been analyzed, it must be evaluated. Job evaluation is a process of rating the value of the job to a firm. This enables a firm to set the rate of pay for each job performed and to group similarly rated jobs. It is essential in recruiting, transferring and promoting employees.

  2. Keeping the jobs filled with the right people is the staffing phase of the management job, and it includes a subfunction of selection of the best qualified from those who seek the jobs.

    Given the three candidates for a job, there is no absolutely sure way of selecting the best one. The tools available are examination of the candidate=s past record, tests of various kinds, and the interview. But, these tools are to certain extent not reliable. At any rate, no amount of testing, interviewing, or examination of past records, as nearly as they can be ascertained, will enable a company to feel absolutely sure that it is really getting the best among the candidates. The qualities that make them successful in one company may not make them successful in another. Whether or not they do their best work depend on the circumstances, the way their supervisors act, the company policies, and other factors.

    If a choice must be made in this case, there should be greater emphasis on the most important qualification for the job. Although all 3 candidates satisfy the basic requirements as advertised in the newspaper, I would hire the Candidate C.

    Candidate C is selected because his lines of duty are somewhat similar to those of the Dynamic Group. He has rich experience in monitoring training activities, evaluating mergers and setting up the organization of the international division in PRC.

    Candidate A is rejected because he has no experience in financial and training aspects.

    Candidate B is rejected because he shows dissatisfaction with the variety of assignments and the heavy traveling involved with the present job.

  3. Merger refers to two or more firms that combine to form one company. The main objectives of merger are to:

    1. expand a market/product/service/technology;
    2. gain new sources of goods/ supplies/ materials;
    3. acquire cash reserves/ credit lines/ capital;
    4. gain tax advantages.

    The methods used to achieve the above objectives are:

    1. Vertical merger;
    2. Horizontal merger;
    3. Conglomerate merger.