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Key performance indicators (KPI)

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key Performance Indicators: A complete Guide

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Key performance indicators (KPI)

  1. 1. Dr Arivalan Email: arivalankr@praxisynergy.com EFFECTIVE HR KPIs: HR PERFORMANCE MASTERCLASS
  2. 2.  Note for the participants: Not all the slides will be lectured in this two days workshop. Some slides shall be intentionally skipped to provide emphasis on new emerging issues. However the additional slides could be used by the participants as references.
  3. 3. “What gets measured gets done.” -Tom Peters What gets paid for gets done more!
  4. 4. VISION MISSION Objective SWOTSWOT SWOT Action Plan Strategy Strategic Planning & KPIs
  5. 5. Human Strategy Regards Work Capability Vision Business Strategy Organizational Strategy Human Strategy: Capability
  6. 6.  A benchmark is "the best in class" performance achieved for a specific business process or activity. It is performance that has been achieved in reality, & can be used to establish improvement goals.  Note: the term 'benchmark' is sometimes used incorrectly to refer to average performance or even to refer to a minimum acceptable standard. Care should be taken to use the term correctly
  7. 7. PM is a systematic process to improve organizational performance through on- going process of establishing performance goals, competency development, performance monitoring & appraising performance to drive & reward performance
  8. 8. MOTIVATION • Job enrichment • Promotions • Coaching • Feedback • Rewards ENVIRONMENT • Management philosophy • Culture • Empowerment ABILITY • Recruitment • Selection • Training • Development Performance = f (A,M,E..)
  9. 9. Will Do, Can Do Will Do, CANNOT Do Will Not Do, Cannot Do Will NOT Do, Can Do Star Performers Deadwood ? Attitude & Motivation Low Low Competency High High Very Often WATCH THESE !
  10. 10.  A company’s ability to make optimal use of its employees has developed to become a strategic parameter when it comes to the competitiveness of a company.  Absences and failure to use data based organizational key performance indicators are quite unsatisfactory when companies take initiatives to develop their organization. Such key performance indicators could ensure focused and business oriented efforts.
  11. 11.  “Organizational Key Performance Indicators” offers concrete evidence as to how a company’s organizational performance can be measured and evaluated by means of data which, to a large extent, are already available but which are rarely used in order to comprehend the overall performance of a company.  The tool measures on 27 significant organizational areas which are divided into four main categories; 1) how strong is the organization’s market position? 2) How vulnerable is the organization in relation to its key competences? 3) How much strain does the human organization put on the company financially? 4) How effective is the company’s organization?
  12. 12. The concept measures on 13 categories of organizational key performance indicators. These categories are: 1. Performance in the market 2. Innovation ability 3. Joint focus 4. Organizational profile 5. Organizational adaptation ability 6. Successor rate in key jobs 7. Total payroll costs 8. Salary level 9. Number of employees per manager 10. Investment in competence development 11. Staff turnover 12. Absences due to illness 13. Accidents
  13. 13. 1a. Market performance 1b. Turnover per employee 1c. Earnings per employee 1d. Turnover development per employee in relation to last year 1e. Development in earnings per employee in relation to last year 2a. Innovation ability (Vitality index) 3a. Organizational focus 3b. Number of managers and key employees with performance dependent salary (bonus) 3c. Performance dependent payroll share (bonus) 4a. Administration and support salary costs per employee
  14. 14. 5a. Organizational adaptation ability 6a. Successor rate on key jobs 6b. Job positions filled with internal candidates in relation to the vacant jobs 7a. Payroll share of total costs 8a. Average salary for managers 8b. Average salary for salaried workers 8c. Average salary for hourly-paid workers 8d. Average salary, all except senior management 9a. Number of employees per manager 9b. Number of middle managers per senior manager
  15. 15. 10a. Investments in competence development in per cent of the total costs 10b. Number of investments for competence development covering activities connecting the goals and plans of the company 11a. Staff turnover in per cent (confirmed staff) 11b. Staff turnover in per cent (probationer) 11c. Average seniority 11d. Share of staff turnover from employees with less than 12 months seniority 12a. Absence due to illnesses in per cent 13a. Accident frequency. Number of injuries per 1 million work hours 13b. Severity, average number of lost work days per accident
  16. 16. In order to organize the 29 key performance indicators in such a way that it is relatively easy to get an overview, the tool organizes them in 4 main groups. The four groups of organizational key performance indicators are: 1.Overall strength Key performance indicators in this main group indicate individually or put together measure an organization’s overall performance in the market 2. Vulnerability Key performance indicators in this main group measure individually or put together the organization’s ability to reproduce itself 3.Basic operation Key performance indicators in this main group measure individually or put together the burden of cost of the human organization in the company 4. Structural characteristics Key performance indicators in this main group measure individually or put together the significant feature in the organizational structure. 
  17. 17. Stallions (high performers) are the ones who will win races (brings the money) for you but they are not cheap. On the other hand, donkeys even if given „special treatment‟ will never ever win races for you. Dr John Sullivan in „The True Value of Hiring & Retaining Top Performers‟, states that “Top performers exceed the performance of average performers by at least 25%”. When you translate that into dollars & cents it can be very big money.
  18. 18. Stallions want to be treated like stallions. They know that they can win races & therefore know that they are special. They also know that they are very marketable. It is a small price to pay for excellence (win-win formula). However, when you treat them like donkeys, they get de-motivated which in turn results in them not winning races or else they leave.
  19. 19.  It is easy to convert a stallion into a donkey by mismanaging & de-motivating. On the other hand, even most excellent training, performance development & compensation strategies will not be able to convert a donkey into a stallion.  NEVER, EVER allow a donkey to manage stallions as they will be converted into donkeys or the stallions will leave. Donkeys are easily replaceable.
  20. 20. If you have a turnover problem look first to the managers as people leave managers, not companies. Therefore, identify the stallions & try to keep them as stallions PERFORMANCE provides the sustainable COMPETITIVE ADVANTAGE. Steve Jobs talks about managing people.avi
  21. 21. Develop Competencies Monitor / ObservePerformance Appraisal Set Performance Goals
  22. 22.  Quick Tips › S.M.A.R.T. Goals  Specific  Measurable  Achievable/Agreed Upon  Relevant  Time-bound › Aligned › Adjustable
  23. 23.  Traits  Behaviors  Competencies  Goal Achievement  Improvement Potential
  24. 24. Kassim has a MBA in HRM is offered the position of Manager – Employee Relations at a local manufacturing company. He does well during the probationary period & is confirmed in his position. Soon after, the National Union representing companies in his industry, are recognized to represent the employees. Kassim has never worked with Unions before and has a hard time negotiating the first CA with the mandate given by the management. He does little to build rapport with the Union, who start picketing outside the Company‟s premises. Kassim calls in the Police (who are his good friends), who arrest the Union leaders for causing public disturbance . The Union had overlooked his relationship with the local Police & did not seek a permit for picketing. After 2 days, the Union leaders are released…now they refuse to proceed with negotiations over the CA & are working to rule. Production & quality suffers & employee morale falls. The MD calls for termination of Kassim.
  25. 25. 1. Vision + Culture + Structure + Resources = Results 2. ? + Culture + Structure + Resources = Confusion 3. Vision + ? + Structure + Resources = Resistance 4. Vision + Culture + ? + Resources = Anxiety 5. Vision + Culture + Structure + ?+ Frustration Where is your organization NOW?
  26. 26. Activity  Respond to the following questions designed to help you establish “next steps”  Do I know my department objectives?  What do I do to achieve my own objectives?  Do I know my staff members‟ role profiles?  What do I need to do before conducting planning objective meetings with my staff members?  Discussion with group members  Share a few examples
  27. 27.  Understand the performance measurement system  Review employee‟s job description, performance goals and standards  Review notes from the year  Understand employee expectations
  28. 28. “Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible. A typical role targets three to five KRA.
  29. 29. Identifying KRAs helps individuals:  Clarify their roles  Align their roles to the organization's business or strategic plan  Focus on results rather than activities  Communicate their role’s purposes to others  Set goals and objectives  Prioritize their activities, and therefore improve their time/work management  Make value-added decisions
  30. 30.  Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
  31. 31. -RECRUITMENT/ SELECTION -WORKFORCE PLANNING/ -DIVERSITY MANAGEMENT -PERFORMANCE MANAGEMENT -REWARD MANAGEMENT -WORKPLACE MANAGEMENT -INDUSTRIAL RELATIONS -SAFETY AND HEALTH WORKPLACE -BUILDING CAPABILITIES AND ORGANIZATION LEARNING -EFFECTIVE HR MANAGEMENT SYSTEMS , SUPPORT AND MONITORING
  32. 32. KRA and hence KPI is attributed to the department which can have effect on the business results and is self measured where applicable.
  33. 33. *VISION STATEMENT *MISSION STATEMENT *CORPORATE OBJECTIVES *CORPORATE STRATEGY *CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY. FOR THE BUDGET PERIOD, WHICH IS USUALLY 12 MONTHS.
  34. 34.  CORPORATE OBJECTIVE / STRATEGY -improve the company competitive positioning and productivity by 10%. HR DEPARTMENT'S OBJECTIVE -Achieve high productivity level in all activities [ say by 10%]  KRA 1 -RECRUITMENT/ SELECTION Key Performance Area (KPA) --RECRUITMENT KPI ----reduce average time taken to fill vacancies by 15% KPI ----reduce average cost per recruit by 10%
  35. 35.  KRA 2 -WORKPLACE MANAGEMENT KPI ---reduce the labor turnover by 20% KPI ----benchmark total HR COSTS externally.
  36. 36.  KRA 3 -SAFETY AND HEALTH WORKPLACE KPA ---workplace accidents KPI ----reduce workplace accidents by 10%
  37. 37.  KRA 4 -BUILDING CAPABILITIES AND ORGANIZATION LEARNING KPA ----TRAINING KPI --- ALL WORKFORCE below middle management should receive a minimum of 4 days of training.
  38. 38. KPI PIs KRI KRA Critical Success Factors/ Strategies from Mission
  39. 39.  KRI (Key Result Indicator)  PIs is Performance Indicator  KPI (Key Performance Indicator)
  40. 40. KRIs typically cover a longer period of time than KPIs; they are reviewed on monthly/quarterly cycles, not on a daily/weekly basis as KPIs are. Performance indicators that lie beneath KRIs could include:  Profitability of the top 10% of customers  Net profit on key product lines  Percentage increase in sales with top 10% of customers  Number of employees participating in the suggestion scheme
  41. 41.  A CEO of a distribution company realized that a critical success factor for their business was trucks leaving as close to capacity as possible. A large train truck capable of carrying more than 40 tons was being sent out with small loads as dispatch man-agers were focusing on "delivering in full on time" to customers.  Each day by 9 A.M., the CEO received a report of those trailers that had been sent out underweight. The CEO called the dispatch manager and asked whether any action had taken place to see if the customer could have accepted the delivery on a different date that would enable better utilization of the trucks. In most cases the customer could have received it earlier or later, fitting in with a past or future truck going in that direc-tion. The impact on profitability was significant.  Just with the airline example, staff did their utmost to avoid a career-limiting phone call with their CEO!
  42. 42.  KPI measures (general) › Quantity › Quality › Cost › Revenue › Timeliness
  43. 43. 1. Non-financial measures (not expressed in dollars, yen, pounds, euros, etc.) 2. Measured frequently (e.g., daily or 24/7) 3. Acted on by the CEO and senior management team 4. Understanding of the measure and the corrective action required by all staff 5. Ties responsibility to the individual or team 6. Significant impact (e.g., affects most of the core critical success factors [CSEs] and more than one BSC(Balance Score Card) perspective 7. Positive impact (e.g., affects all other performance measures in a positive way)
  44. 44. This example concerns a senior BA official, who set about turning British Airways (BA) around in the 1980s by reportedly concen-trating on one KPI. He was notified, wherever he was in the world, if a BA plane was delayed. The BA manager at the relevant airport knew that if a plane was delayed beyond a certain "threshold," they would receive a personal call from the BA official. It was not long before BA planes had a reputation for leaving on time. This KPI affected all six of the BSC perspectives. Late planes:  Increased cost in many ways, including additional airport surcharges, and the cost of accommodating passengers overnight as a result of planes being "curfewed" due to noise restrictions late at night
  45. 45.  Increased customers' dissatisfaction, and alienation of those people meeting passengers at their destination (possible future customers)  Contributed more to ozone depletion (environmental im-pact) as additional fuel was used in order to make up time during the flight  Had a negative impact on staff development as they learned to replicate the bad habits that created late planes  Adversely affected supplier relationships and servicing schedules resulting in poor service quality  Increased employee dissatisfaction, as they were constantly "firefighting" and dealing with frustrated customers
  46. 46. Balanced Scorecard
  47. 47. Past Measures Current Measures Future Measures Last week/two weeks/ month/quarter 24/7 and daily Next day/week/month/ quarter For example, number of late planes last week/last month For example, planes over two hours late (updated continuously) For example, number of initiatives to be commenced in the next month/two months to target areas that are causing late planes
  48. 48.  KPIs are prepared in real time, with even weekly ones available by the next working day.  One or two KPIs should be updated daily or even 24/7 (as in the British Airways case).  Most organizations will have five essential KPIs, which must be reported weekly at least (excluding the daily or 24/7 KPIs identified above).  Performance measures that focus on completion should be included.  Projects that are running late and overdue reports should be reported to the senior management team each week.  Such reporting will revolutionize project and task completion in your organization.
  49. 49. Dashboard for the Board BSCs for Management and Teams Weekly scorecard on the top five KPIs Daily or 24/7 report on one or two KPIs (e,g., number of planes over two hours late) Monthly dashboard of up to ten KRIs, such as customer satisfaction, value of new business earnings before interest and taxes, etc. Monthly team and business unit scorecards Monthly organizational scoreboard on top PIs
  50. 50.  Many management reports are not management tools; they are merely memorandums of information. As a management tool, management reports should encourage timely action in the right direction.  Organizations need to measure and report on those activities on which the board, management, and staff need to focus. The old adage "What gets measured gets done" is still true.
  51. 51.  For management reporting to become a management tool, monthly reporting must be combined with daily and weekly reporting. It is of little help to tell the senior management team that "the horse has bolted" halfway through the following month. If management is told immediately "the stable door has been left open," most are soon able to "close" it.
  52. 52. Financial Results Customer Satisfaction Learning and Growth Internal Processes Staff Satisfaction Community and Environment Strategies (Issues & Initiatives) Mission/Vision/Values Journey FROM Mission and Vision to Performance Measures that Works
  53. 53.  Lesson 1: Appoint an External Project Facilitator  Lesson 2: Begin with the Senior Management Team: Commitment and Education  Lesson 3: Focus on the Critical Success Factors  Lesson 4: Follow the 10/80/10 Rule  Lesson 5: Select a Small KPI Team
  54. 54.  Lesson 6: "Just Do It“ – No failure only feedback  Lesson 7: Use Existing Systems (Software) for the First 12 Months  Lesson 8: Trap All Performance Measures in a Database and Make Them Available to All Teams  Lesson 9: Leave the KPI Reporting Formats to the KPI Team. Lesson 10: Maybe You Need to Rename
  55. 55. An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. An appraisal tool that asks managers to assess a worker‟s behaviors. An appraisal tool that asks managers to assess the results achieved by workers. Trait Appraisal Behavioral Appraisal Outcome Appraisal
  56. 56. Objective Appraisal Data 1) Production Data (e.g., sales volume, units produced) • When observation occurs (timing), and how data is collected • Fairness and relevancy issue • Potential limited variability • Limitations regarding supervisory personnel 2) Personnel Data • Performance goals • Absenteeism (excused versus unexcused)
  57. 57. Ratings Example: Scales Rate the employee‟s behavior on the scale provided. Excel Good Acc Unsat N/A 4 3 2 1 ___ Reasoning ability 4 3 2 1 ___ Decisiveness in Decision-making 4 3 2 1 ___ Imagination & originality 4 3 2 1 ___ Ability to plan and control 4 3 2 1 ___ Cooperation with peers 4 3 2 1 ___ Cooperation with management 4 3 2 1 ___ Professionalism 4 3 2 1 ___ Interpersonal skills 4 3 2 1 ___
  58. 58. Responsibility Commitment Initiative Sensitivity Judgment Communication Observation of specific behavior (s) (e.g., volunteers to work overtime) Halo Error High ratings on other performance dimensions
  59. 59.  Gut feeling (subjectiveness)  Lack of follow-up  Improper preparation; poor documentation  Biases › Similar to me › Positive leniency - want to give everyone high scores › Negative leniency - want to give everyone low scores › Halo effect - the employee is a "saint" so must have high scores › Attribution - tending to see poor performance more within control of the individual and superior performance as more of an influence of external factors
  60. 60. › Stereotyping › Contrast effect - contrasting one employee's accomplishments against another › Unfair comparison - comparing one employee against another › First impression › Central tendency (forced bell curve) - expecting in any group that there will be some poor employees and some great employees  Recency effect: over - emphasis on recent performance  Inadequately defined and/or misunderstood standards/goals  Lacking truth  Poor interviewer (poor environment, poor use of time, domineering, poor listener, etc.)  Conducting an "annual" review (as opposed to the ongoing review)  Negative approach - catching them doing doing something wrong (as opposed to the One Minute Manager Approach of catching them doing something right)
  61. 61. Performance Appraisal System A well designed performance appraisal should give employees answers to questions such as –  What am I expected to do  How well am I doing  What are my strengths and weaknesses  How can I do a better job and  How can I contribute more towards the organizational goal.
  62. 62. Unclear Language Mgr not taking PA seriously Mgr not prepared No on- going feedback Mgr not honest or sincere Ineffective discussion Lack appraisal skills Mgr Lacks Infor. Insuff. Rewards
  63. 63.  Prepare in advance for meeting  Clarify responsibilities and expectations  Review performance  Listen to employee‟s point of view  Discuss future plans and development  Close the session on a positive note
  64. 64.  The tell-and-sell method  Communicates to employees their performance as accurately and directly as possible with little return feedback, but can lead to defensiveness  The tell-and-listen interview  Communicates to employees their strengths and weaknesses, but also allows for return feedback  This creates an environment that is less defensive and stressful to the employee
  65. 65.  The problem-solving interview › Playing the role of helper more so than judge, the manager creates an environment through which the employee can discover his or her own developmental needs  The mixed-model interview › Allows for the problem solving interview in the beginning, where the subordinate leads off, and finishes with the tell-and-sell or tell-and-listen approaches if the subordinate has missed some important areas of his or her performance
  66. 66.  Be direct and specific - talk in terms of objective work data  Don‟t get personal - “You‟re too slow in producing those reports.”  Encourage the person to talk - stop and listen to what the person is saying  Make sure the person leaves knowing exactly what they are doing right and wrong
  67. 67.  Tell the employee what they did right  Pause to allow the praising to be felt  Encourage the employee to do more of the same  Reaffirm that you value the employee and their performance
  68. 68.  Must be immediate, specific, focuse d on behavior  Tell employee what they did wrong and why it is a problem  Solicit input from employee  Clarify expectations for future behavior and ensure employee understanding http://www.youtube.com/watch?v=1AtT8a1EJ6k
  69. 69. Syarikat ABC‟s managing Director, Ariffin, sat at his desk planning what he was going to say to Jamil, the Factory Manager, with whom he would be holding his annual performance review in a few minutes. Ariffin disliked these reviews because it was very difficult telling people about their weaknesses. When Jamil knocked on the door, Ariffin just told him to sit down. “Jamil, I‟m not happy with your performance. Your department has a shocking record on attendance, your accident rate is disgraceful and customer complaints about the quality of our product are increasing. Furthermore, I understand your eldest son is getting into trouble at school. You are going to have to pull your socks up or you will be looking for a new job!”
  70. 70. Jamil stood up with a face as red as at tomato, shouted at Ariffin, “How dare you criticize my work! You‟re the one who is never around when you‟re needed. You always out playing golf. There is nothing wrong with my worker‟s attendance. Why don‟t you check out Marketing? Their record is worse and there wouldn‟t be so many accidents if you had bought the machines which I recommended to you last year. Well, now you see the results! And lastly, leave my son out of this. My private life is non of your business.” with that
  71. 71. 1)……………………………………………………….. 2).………………………………………………………. 3)……………………………………………………….. 4)……………………………………………………….. 5).………………………………………………………. 6)………………………………………………............. 7)……………………………………………….............
  72. 72.  Robin was feeling pleased with himself as he had been called to attend an interview for the vacant post of Market Research officer in ABC Ltd. He had put on his new white shirt and colorful tie which he had bought especially for the interview. According to the company‟s letter, his interview was to start at 10.00 am but when he arrived at 9.45 am, he found there were 10 other candidates waiting to be interviewed. The receptionist told him to take a seat and apologized for the delay. His interview was now scheduled for 12.00 noon.
  73. 73.  At 12.15pm, he was called into the interview room where he found himself faced by there stern-looking interviewers. The man in the middle said, “Are you Robin?” Robin confirmed his information. There was some confusion while the other two interviewers looked through some papers, exchanged files and whispered together. Robin stood patiently. Eventually, the man on the right said, “Don‟t you want to sit down? We can‟t interview you while you‟re standing, you know!” Robin immediately sat on the seat facing the interview panel and said, “I would like to thank you for calling me for this interview. I would be pleased to explain why I think I can contribute to your organization as a Marketing Officer.”
  74. 74.  Upon which, one of the interviewers said, “Young man, just answer our question, please. Why are you wearing such a colorful tie? Don‟t you think it is important to dress conservatively in the office?” Before Robin had a chance to respond, the interviewer seated in the middle asked, “What do you think of our company‟s product?” Robin‟s heart sank. This was not what he had expected at all. He began to regret having applied to this company for a job.  Identify the mistakes made by the interviewers in this case, what are the direct and indirect cost to the organization and how might the interview process be done more professionally?
  75. 75.  Recruitment is no longer “shopping” as it used to be but “marketing”.  Talent attraction and retention is crucial for competitiveness.  Organization needs the power of “attraction”. They need “branding.”
  76. 76. • A targeted long term strategy to manage the awareness and perceptions of employees, potential employees and related stake-holders with regards to a particular organization • An Image Management? Employer Branding
  77. 77. Marketing Your Organization Developing a positive internal image • How people are treated • Leadership and supervisory skills • Working conditions • Retrain and develop current employees for tomorrows needs • Ensure those you hire succeed • Wages and benefits
  78. 78.  McKinsey coined the phrase „War for Talent‟ in 1997 to describe the critical shortage of skilled talent  Now, almost two decade later, the war continues…
  79. 79. • Job Analysis • Job Description • Job Specifications • Recruitment & Selection Strategy • Internal Sources • External Sources • Screening Resumes • Initial Interview • Testing • Background Invest. • Intensive Interview • Selection Decision and Job Offer Planning for Recruitment & Selection Step 1 Recruitment: Locating Prospective Candidates Step 2 Selection: Evaluation and Hiring Step 3
  80. 80. Recruitment and Selection Process Most Hiring Managers make their selection decision within the first 5 minutes of the interview. Source: Harvard Study More than 75 % of turnover can be traced back to poor interviewing and hiring practices. Source: Harvard Study If an untrained interviewer uses an unstructured interview format, then the probability of hiring the best applicant is less than 15 %. Source: Michigan State University
  81. 81.  Managers may be tempted to paint overly rosy pictures of both the open positions and the organization as a whole › Managers may feel that if they are honest, an applicant may not be willing to work there. › However, research indicates this is a poor strategy.
  82. 82.  Realistic Job Preview › Providing an honest assessment of the advantage and disadvantages of a job and organization.  Can reduce the number of new hires who quit when their jobs and organizations fail to meet their unrealistic expectations.
  83. 83. Organizational Performance Legal Obligations (Unfair Dismissal) The Importance of Selecting the Right Employees Costs of Recruiting and Hiring
  84. 84.  Application forms, CV analysis  Tests - General Ability, IQ, EQ, SQ, etc.  Work Samples  Personality questionnaires  Reference Checks  Handwriting Analysis etc.  Astrology, Numerology, Face reading, etc  Demonstration or presentation  INTERVIEWS plus some of the above tools.
  85. 85. 1. Bad image 2. Bad job fit and eventual firing (legal cost) 3. Compounding turnover 4. Loss of productivity 5. Lowering morale 6. Costs to recruit again 7. Costs to train
  86. 86.  Robin was feeling pleased with himself as he had been called to attend an interview for the vacant post of Market Research officer in ABC Ltd. He had put on his new white shirt and colorful tie which he had bought especially for the interview. According to the company‟s letter, his interview was to start at 10.00 am but when he arrived at 9.45 am, he found there were 10 other candidates waiting to be interviewed. The receptionist told him to take a seat and apologized for the delay. His interview was now scheduled for 12.00 noon.
  87. 87.  At 12.15pm, he was called into the interview room where he found himself faced by there stern-looking interviewers. The man in the middle said, “Are you Robin?” Robin confirmed his information. There was some confusion while the other two interviewers looked through some papers, exchanged files and whispered together. Robin stood patiently. Eventually, the man on the right said, “Don‟t you want to sit down? We can‟t interview you while you‟re standing, you know!” Robin immediately sat on the seat facing the interview panel and said, “I would like to thank you for calling me for this interview. I would be pleased to explain why I think I can contribute to your organization as a Marketing Officer.”
  88. 88.  Upon which, one of the interviewers said, “Young man, just answer our question, please. Why are you wearing such a colorful tie? Don‟t you think it is important to dress conservatively in the office?” Before Robin had a chance to respond, the interviewer seated in the middle asked, “What do you think of our company‟s product?” Robin‟s heart sank. This was not what he had expected at all. He began to regret having applied to this company for a job.  Identify the mistakes made by the interviewers in this case, what are the direct and indirect cost to the organization and how might the interview process be done more professionally?
  89. 89. How do we (HR) CHANGE? “Everybody wants to change the world, but no one thinks of changing himself” - Leo Tolstoy

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