Answer to Question #309984 in Management for Jagdish

Question

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

Answer 1

Hallmark Cards strategy is focused on measuring the quality of the hiring decisions by using 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. UnitedHealth Group’s strategy is focused on modifying their selection procedures within the organization by splitting job candidates into two basic groups. The first group 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. Based on the information that was provided, it appears that Hallmark did not change its selection procedures, but put in place a metric to measure the success of the procedure. UnitedHealth Group’s strategy actually changes the selection procedures, however, we are not told of any metrics used to determine the success of the change other than a reference to “increased control and efficiency.” Therefore, the change could have reduced costs but not increased quality.