Apple Inc

E-Recruitment
By Atchar Suwattanathum : Student no. 08837612

MNM59
Lecturer’s Name:
Asher Rospigliosi, Clare Millington,
Maura Sheehan and Sian Eggert

1st Submission
Date Due: 15st April 2010 17:00 PM
Number of Pages: 23
Word Count: 4,020
 Apple Inc.

Executive Summary
This report approach basic knowledge, techniques, theories and statistics in human
resource recruitment and information system to access the most proper solution for
E-Recruitment system implementation of Apple Inc. The advantages and
disadvantage of E-Recruitment was used to be information in order to determine
alternatives.

The most admire company of business people like Apple Inc generally face with
massive information of applicants that impact to human resource management in
recruitment problem. The traditional and manual recruitment system cannot properly
deal with the quantity because of limitations itself. The most proper alternative and
characteristic of Apple’s E-Recruitment are evaluated in every stage of
implementation. Pre-Implementation evaluate in project selection, feasibility study,
analysis, design and construction. Implementing timeline is the major concern in
Implementation stage and Post-Implementation concerns with user’s feedback,
reviewing project result, monitoring dual phased process between new and old
software.

With all aspect possibility evaluation of Apple’s E-Recruitment project, Apple Inc is
able to use its core competency in computer and software market leader improve
and develop organization’s current E-Recruitment system by creating its own in
house software to solve the problem of massive application in order to select
potential candidates with least time consuming.
 Apple Inc.

Table of Content

EXECUTIVE SUMMARY 2

1. INTRODUCTION 5

2. HUMAN RESOURCE MANAGEMENT - RECRUITMENT AND SELECTION 6

3. HUMAN RESOURCE INFORMATION SYSTEM IN E- RECRUITMENT 7

3.1 TREND OF RECRUITMENT PLATFORM 7

3.2 ADVANTAGES OF E-RECRUITMENT 8
3.3 DISADVANTAGES OF E-RECRUITMENT 9

4. CURRENT RECRUITMENT SYSTEM 11

4.1 CRITICAL APPLE’S RECRUITMENT SYSTEM 12

5. RECOMMENDATION AND IMPLEMENTATION 13

5.1 PRE-IMPLEMENTATION STAGE 13

5.2 IMPLEMENTATION STAGE 19
5.3 POST-IMPLEMENTATION STAGE 20

6. CONCLUSION 21

REFERENCE 22
 Apple Inc.

List of Tables

Table1: Estimating yearly cost saving of Apple’s E-Recruitment software 15

Table 2: Success criteria weighting of Apple’s E-Recruitment 16

List of Figures

Figure 1: Apple website 11

Figure 2: Apple E-Recruitment platform 17
Figure 3: Example of Link software 18
 Apple Inc.

1. Introduction
Apple Inc is the world best-known company for personal computer that was
established by partner college dropouts in USA; Steve Wozniak and Steve Jobs in
1976. Just two year later, Apple Inc became one fastest growing company in USA
with Macintosh software. From 1989 to 1991 it was the golden age for Macintosh
(Encyclopedia Britannica, 2010); however, due to high price in production, unrealistic
marketing plan and departure of founder, Steve Job and many Apple executives in
1985 including Microsoft continued gain personal computer market share by
Windows during 1991 to 1993, these reasons brought Apple depth into the Dark
Age. Until returning of Steve Jobs in 1996 from acquisition with NeXT, he
restructured Apple’s company strategy by emphasizing in differentiation strategy. As
wildly recognize that Apple’s products are outstanding in design and innovate
leading which were prove from the successful of the introduction of new product
lines; for example, The introduction of iPod in 2001that was phenomenally
achievement in portable music players market with sale volume over 100 million
units within six years. In addition, Apple aggressive competed into mobile market
with iPhone which was launched on June 2007 and dramatically successful. Apple
has current three main product lines; iMac, iPod, and iPhone which were produced
by subcontractors almost base in Asia such as China, Taiwan, Thailand, etc (Apple,
2010).
Apple have opened Apple’s retail store and have been expanding to 273 stores
worldwide in 2009 that made support the successful of Apple product distributions
and shape the strong financial health of company. From the most admired
companies ranking of CNN; Fortune’s survey on 22 March 2010, Apple is the
number one most admire‘s businesspeople company from any industry (CNN,
2010).
 Apple Inc.

2. Human Resource Management - Recruitment and Selection

Recruitment and selection referred to Bratton (Bratton et al, 2003) always is the
important and first stage of human resource management function in company. The
objective of recruitment about attracts the talent people to be the company’s
employees following goal of company and labour demand forecasting; in addition, it
is able to be one way to and promote advertise in the public’s mind. Referred to
effective recruitment and selection practice (Compton et al, 2009), there are many
method of recruitment that generally separate by source to internal and external
source. The internal source is such as transferring, department examination, and
employee’s recommendation and so on. For external source that support in
advertisement of organization such employment agency, job center, news paper,
company website, etc. In the most case, company focus on recruit from external
source due to generate more competition of candidate that means providing variety
of choice and high potential to hire the employees of the dream. Especially, in
current many world class companies realize on value of human resource and
development people more than ever before; for instance, Steve Jobs; Apple Inc
CEO used to mention that “the most value asset of Apple Inc is employee”.
However, the costly of recruitment of external resource is the major weak point of
this way practically using job agency and newspapers and time consuming is
another disadvantage which are management challenges and every company intend
to overcome over past a year and a year.
 Apple Inc.

3. Human Resource Information System in E- Recruitment

The idea of human resource information system (HRIS) came from merging between
HR process with information technology in order to collect and maintain employee
data accurately and effectively (Ceriello, 1998). HRIS in recruitment process over
past 10 years were developed rabidly as the development in technology including
occur new word and definition of HRIS in recruitment from the revolution of internet;
E-recruitment or online recruitment is using web-based and internet -based for
recruiting process (Hopkins, 2003).

3.1 Trend of recruitment platform

During over past a decade there are wide spread of E-Recruitment referred to the
information from survey if the Chartered Institute of Personnel and Development or
CIPD in 2008 (CIPD, 2010), 75% of company use their own website to attract the
applications and it is the fourth popular method in recruiting. There are growth of
many big job boards player such as search4job, Seek and so on that allow
candidates post and directly entry their information on website 24/7.

In addition, the development of web 2.0 that related to two way communication
facilitate interaction between whether users and sever and among users and users
such as information sharing, web-based communities (Encyclopedia Britannica,
2010), this crated new recruitment platform in current and potential to be distribute
widely in the future from increasing trend of users of community website; for
instance, Facebook has more than 150 million worldwide users from CIPD survey in
2009 (CIPD, 2010). As Gordon Brown, the ex-British Prime Minister, mentioned that
people more than 100 million are using online social networking site such Facebook,
Twitter, YouTube and so on thus web 2.0 established a new interdependent and
connected world.
 Apple Inc.

3.2 Advantages of E-Recruitment

E-Recruitment revolted of 2000s recruitment platform with undeniably many benefits

both tangible and intangible benefits (Boddy et al, 2005):

3.2.1 Tangible benefits

First obviously benefit is vacancy advertisement cost saving, referred to CIPD

survey in 2008 (CIPD, 2010), the employers more than 7 in 10 used cooperate
websites to promote vacancy positions that 4 in 10 of respondents claimed that E-
Recruitment can reduce recruitment cost 73%. In addition, the investment in web-
based and online recruitment require small amount of budget that in some
companies use their IT employees to create and maintenance E-Recruitment
system.

Time saving is the second major advantage of E-Recruitment, as Gayleen Robinson,

Staffcv marketing manager claimed the effectiveness of E-Recruitment that
company compare between working time spent on manual and online method then
convert to direct cost, the result was up to 90% of time saving. Not only employer’s
time saving but also reduces applicants time and flexible in to access in database 24
hours.

Quality and accuracy of information improvement (Boddy et al, 2005), not only the
computer-based and internet-based generally provide speed in searching, but also
usually more accurate and consistency data including in terms of up-to-date
information. The error is always unexpected costly expenditure that difficult to
evaluating.
 Apple Inc.

3.2.2 Intangible benefits

Ferran claimed the intangible of IS investment (Ferran, 2008) that it was able to
improve communication and image of company. This is directly concerned with
reputation of company itself especially for international organization. Impossibly,
Apple Inc was the most attractive company in 2008 and maintain image of innovative
organization, if it still uses manual system in recruitment.

In addition, it can be the competitive advantage and help to support company’s

strategy in term of differentiation (Porter, 1985). The firm is able to use this
advantage to lead its competitors. On the other hand, the cost leadership company
can also gain the advantages from tangible side to encourage its low cost strategy;
for example, Virgin Blue Airline, Australian low cost airline is using online recruit all
their cabin crew position( CIPD, 2010).

Moreover, the web-based recruitment system provides flexibility of HR staffs in case

of the website was developed and maintenance by in house IT staffs by reducing the
complex communication between outsourcing and HR user. And due to flexibility
tend to reduce time consuming in routine recruitment activities so the chain benefit is
HR employees have more available time for development and strategic tasks.
Another indirectly tangible benefit that occurs from using in house IT staffs is; it
supports learning and transfer knowledge within organization from sharing, storing
and transferring information (Boddy et al, 2005).

3.3 Disadvantages of E-Recruitment

However, E-Recruitment has some weak points that each company necessary to
consider as much as possible preventing the undesirable damages. Many
individuals and researchers widely argued about E-Recruitment in terms of security
 Apple Inc.

and privacy issue especially in cases of job boards and society networking because
normally applicants public their personnel information on web board. Besides, if
compare technology in white side that is protected personnel data by programmer;
on another way around, hacker is who use black side of technology for personnel
benefits.

E-Recruitment usually is one way communication so it is a core limitation which

almost entry company is not able to eliminate traditional face to face interview in
selection process. Although many company allow applicants post or attach their
additional information such as personnel story and experiences, it still without
interaction between candidates and interviewers. HR staffs can use the individual’s
story in narrative analysis to identify and evaluate suitability of applicant
(Czarniawska, 1998).

There were many reports showed E-Recruitment fail because of the internet
limitation (Feldman et al, 2002, p175-206). The job board normally overload with job
proposing for social networking where had a lot user registered often response very
slowly. Most of these problem potential to appear in developing countries rather than
in developed countries.

Although the quantity of candidates is the strong point of E-Recruitment, it is able to

be weak point if consider at another aspect. Due to this attract both of talent
candidates and persons who change job frequently more likely to be called job
hoppers which base on survey 35% of staff who were hired from online recruitment
had more than three times job changing within five years (Wuttke, 2008, p14). It
leads to high turnover rate and increase replacement cost

Relationship and culture issue is another concern for HR manager, particularly

online recruitment on job boards. Referred to Wolter’s study (Wolters, 2006), he
mentioned about the negative relationship from comparison between suitable
respondent and information proposal from job seekers. Furthermore, the impact of
organization culture fit is a delicate and unable look across issue. Particularly, there
 Apple Inc.

is diversification of age and gender in organization. Mostly, young candidates use E-

Recruitment more than older people and men more use online job searching than
women (SHRM, 2010).

4. Current recruitment system

Due to Apple is the number one most admired company from ranking of CNN;
Fortune’s survey on 22 March 2010 (CNN, 2010), Apple website attracted tons of
candidate per day. Apple’s web-based uses Apple ID and password to identify huge
such information. This is not necessary to Apple hire agency or outsourcing for
recruitment that is advantage from company reputation. Apple web page is also a
good advertisement channel; it posted a lot of attractive information for job seekers
such as benefits of Apple staffs and VDO interview of Apple’s staff (Apple, 2010).

Figure 1: Apple website

Source: Apple (2010)
 Apple Inc.

Noticeably, there is not Apple’s vacancy position post on job boards by company
itself same as advertisement on job center also.

4.1 Critical Apple’s recruitment system

After considering Apple’s recruitment method and company profile, it was able to
assume that the talent candidate attraction was not a major challenge of Apple HR
department because of widely reputation and stability of company. Beside, due to
Apple Inc is the well known in personnel computer industry and itself operating
system Mac, it is strongly reason to conclude that Apple spent very small amount of
capital in its website E-Recruitment system.

The potential problems of Apple E-Recruitment process should be how to deal with
the enormous of CV and information to distill the most suitable employee with less
time consuming? In addition, the main recruitment cost of big worldwide company
like Apple Inc is not cost of advertising on publication sources or outsourcing and job
agency like general small to medium company but it possibly to be hidden operating
cost of HR staffs. The more working time for selection, the more labour cost of
company that it is difficult to measure or estimate such hidden cost thus this is risky
circumstance of company because how can HR staff improve the recruitment if they
cannot evaluate impact and wasting cost of system?.

The general problem of E-Recruitment in quality of application’s information is also

one issue of Apple with the limitation of one way communication.
 Apple Inc.

5. Recommendation and Implementation

To deal with massive of candidates information, HR department cooperate with IT

department to develop in house Apple’s E-Recruitment software. Apple not
necessary to consider purchase software from outsourcing due to Apple has core
employee who are expertise in software development and familiar with internal
system including organization culture so it can be a guarantee sign of the high
software performance ; in addition, obviously that outsourcing software purchasing
require more investment than in house operating. However, E-Recruitment software
take more developing time than purchasing a ready to use software but in aspects of
costing and confidentiality of program performance seems outweigh than time
consuming in program development issue. Furthermore, indirect benefits from in
house software are in the areas of differentiation generating that support Apple’s
reputation and image; in addition, knowledge transfer and learning within
organization that encourage company’s knowledge management.

Step of development Apple’s E-Recruitment software can separate to three stages

namely Pre-Implementation, Implementation and Post- Implementation. In addition,
It can apply IS concept in system development life cycle or water fall model of Royce
(Leffingwell, 2003).

5.1 Pre-Implementation stage

Referred to waterfall model of Royce the step in project selection, feasibility study,
analysis, design and construction require cooperating from all concern departments
and major responsibility departments are HR and IT department. It is able to cut
vendor selection process due to propose to use in house operating.
 Apple Inc.

5.1.1 Project selection - Based on Critical Apple’s recruitment system and

recommendation parts. It can conclude that Apple’s E-Recruitment software most
suitable is created by in house IT staffs with commentary of company and estimated
small budget that will be analyzed with economic feasibility in next step.

5.1.2 Feasibility studies – In parts of technical and operational are excellent

possibility due to high skill of IT department and flexibility to creating software. In
terms of economic feasibility, it concerns with making decision in project investment,
Net present value (NPV) and Internal Rate of Return (IRR) are usually use in
analyze the profitability of investment. Based to (Young, 2000), NPV concept is
comparison between value of money in current and the value in the future with add
inflation rate and if amount of NPV is less than zero that show the cash flow is
negative that made the project is potential to be rejected. In case of Apple Inc, this
article selected IRR to analyze Apple’s E-Recruitment financial feasibility analysis
instead of NPV. IRR is the actual yield of interest or discount rate from expected
investment and its conclusion same as with NPV method.

The basic principle in decision making is; if IRR greater than the weighted average
cost of capital (WACC), the result is; E-Recruitment software development project is
accepted because its rate of return on invested capital more than the cost of
investment.
As showed in table1, it showed estimated yearly saving cost of Apple’s E-
Recruitment software in labour, energy and maintenance. The estimated number
based on annual report of Apple Inc in 2009 (Apple, 2010)
 Apple Inc.

Year Savings Savings Total Purchasin Software Depreciatio Net profit from IRR
Labour cost Energy and saving g software development n of E-Recruitment
(4%Inflation Maintenanc cost (€ 000) and Energy computer (€ Implementation
) (€ 000) e (€ 000) and maintain 000) after tax (€ 000)
(4%Inflation) cost (€ 000)
(€ 000)
0 0.0 0.0 0.0 0.0 (1,050.0)   (630.0)
1 1,100.0 50.0 1,150.0   (20.0) (10.0) 442.0
2 1,144.0 52.0 1,196.0   (20.0) (10.0) 460.4
3 1,189.8 54.1 1,243.8   (20.0) (10.0) 479.5
4 1,237.4 56.2 1,293.6   (20.0) (10.0) 499.4
74%
5 1,286.8 58.5 1,345.3   (20.0) (10.0) 520.1
6 1,338.3 60.8 1,399.2   (20.0) (10.0) 541.7
7 1,391.9 63.3 1,455.1   (20.0) (10.0) 564.0
8 1,447.5 65.8 1,513.3   (20.0) (10.0) 587.3
9 1,505.4 68.4 1,573.9   (20.0) (10.0) 611.5

Table 1: Estimating yearly cost saving of Apple’s E-Recruitment software

The IRR equation:

NCFt
∑ (1+i)t
0 =

i = Internal rate of return

NCFt = Net cash flow year t

Referred to IRR equation (Wilkinson, 2005), IRR = 74% that higher than 12%
WACC; as a result of this, Apple are very highly favorable in decision implement E-
Recruitment software. Based on estimated cost saving in this table, Apple is able to
save around € 1.15 million at the end of first year and payback period around 6.5
month.
 Apple Inc.

5.1.3 Analysis – As mentioned in critical Apple’s recruitment system and

recommendation parts, the main proposal of Apple’s E-Recruitment software
emphasis on time saving selection, user friendly and quality of candidates. In
analysis part should consisted of identify objectives and detail of requirements
including critical failures is required considering. Based upon many survey statistics
in IS implementation failure; for instance, survey of Cooper & Lybrand in 1995 found
that large companies in UK more than 60% had problem with computer system fail in
first two years of project implementation (Flowers, 1996). Moreover, Standish Group
also claimed in 1995 that there was around 31% of IS projects were canceled before
implementation and 39% of specific functions were eliminated from originally specific
function or the other word there was original features available around 61% after
implementation (Standish Group,2010) . According to these statistics, it is very
importance for Apple’s staff necessary to minimize potential failure in implementation
and operating (Post-implementation) stage, every Apple’s responsible staff in this
project should define and list all potential failure to access of success criteria.

Referred to scoring model of Standish Group (Standish Group, 2010), success

criteria weighting score of Apple’s E-Recruitment software is showed as table 1.

Success Criteria Score

Project organization
- Staffs competency 7
- User involvement 15
- Objective and feasibility 10
- Effective planning time line 8
Support
- Executive management supporting 17
- Experienced manager and staffs 12
- Training support 10
Environment
- Company basic require and infrastructure 11
- Organization culture 5
Other 5
Total score 100

Table 2: Success criteria weighting of Apple’s E-Recruitment

software
 Apple Inc.

The supporting from Apple’s executive management is the most important of this
project so project manager should perform in realistic view of project and role in
team building to integrate cooperation between users and developers. Project
manager is able to encourage morale, reduce stress and increase involvement of
staffs that is second key success of Apple’s new software implementation.

Figure 2 : Apple E-Recruitment platform

Source: Boddy (2005)

Software should be designed and constructed base on agreement of every

responsibility including department and line manager as figure 2 (Boddy, 2005) to
minimize debug of program. There are not vendors or outsourcing in this figure as
normal case due to it is in house software. The information transaction between HR
staffs and candidates is limited by system interface. Scope downing information
channel to one interface system made effective massive data organizing including
prevent repeated information. In addition, it has to response all key criteria from
analysis phase in speech, users friendly and quality including covers all recruitment
area; for instance, based on figure 3(Link, 2010), they are the examples of general
operating of recruitment software that link candidate information in visible display,
document management integrate and link with e-mail., search engine, active
schedule list and so on
 Apple Inc.

Figure 3: Example of Link software

Source: Link (2010)

The critical part of Apple’s E-Recruitment software is defining and distillation of

applicant’s criteria. The software should be designed intelligently and automatically
match between data of candidates and vacancies position requirements including
key performance index (KPI) from each department. After run this filter function, the
potential candidates will be summarized, recorded and reported for next step of
selection.
To improve of quality of candidate from selection, Apple’s E-Recruitment software is
able to eliminate general weak point of E-Recruitment system in terms of one way
communication with idea of interactive application on Apple website to go beyond
this limitation. Not only candidates fill all information on website, but also upload their
VDO to be additional narrative. In addition, Apple can interview real time by use
VDO conference instead of face to face in some noncritical positions. And also, it
can create interview online by post VDO of interviewees during ask questions and
keep record of interaction of candidates. According to these ideas, they can improve
in quality of candidate’s information issue including promote company image.
 Apple Inc.

5.2 Implementation stage

In implantation phase should considered about period of time and the key activity is
evaluating the alternative among changeover or cutover (Flowers, 1996).

A cutover method is; the practice in immediately stop old system and totally turn to
operate new system replace old system. The obviously advantages of this
alternative are; easy to operate because the staffs can focus on new software
whereas ignore and not confuse with old system and also it requires short time for
implement. On the other hand, this method has high risky to make overall operating
fail because there is not spare system (cutover old system) or tend to necessary turn
to temporary manual operating; in case if new system occur some undesirable errors
or unexpected problems. So this method requires very thorough preparation and
more accurate and consistent pre- testing until new system is highly confidential
system.

The changeover alternatives consisted of parallel and phased method. For parallel
concept, it is run new software parallel with old system and implement new software
phase by phase with old program. The key advantage point of parallel is safety
aspect because it allows direct comparison between new software and whereas old
software still running. There is overlap time of new and old program that both
systems are parallel operated at the same time. However, slow processing is one of
weak points of parallel method because it is unable to stop old system immediate
thus it requires overlap time to compare between new and old system that made
extend lead time of implementation longer. Moreover, it increased work load for staff
heavier than cutover method due to the employees operate double works during the
overlap period. Phased method seems to be middle way of parallel and immediate
method. The slightly replace old system with new system step by step by increasing
operating of new system during old system roll-out.
 Apple Inc.

Phased method is the most suitable alternative for Apple’s E-Recruitment software
implementation due to mix and match the advantages of parallel and immediately
method and reducer risky and hard work load issue. In addition, due to this software
will be developed by Apple’s IT staffs so there are not concerns in competency of
vendor and communication support.

5.3 Post-Implementation stage

This stage concerns with IS implementation satisfaction, reviewing project result,

monitoring dual phased process (new vs old software) and continued fix bugs and
upgrading software (Flowers, 1996).

To reach in implementation satisfaction conclusion, Apple’s HR and IT staffs should

review both of internal and external users. For internal users, they are able to
summary from users’ opinion of concerned department by using questionnaires or
interviews. In addition, they also can use this questionnaire for applicants who were
selected in second round to evaluate satisfaction of candidate.

Project result evaluation require Apple’s HR and IT staffs evaluate performance in

every aspects which were purposed in planning such as budget, cost saving , time
management , etc and cross check with objectives of project to measure
effectiveness of project and performance.

Apple’s HR and IT staffs can use such performance evaluation to be basic

information in for monitoring and improvement their software to sustain and gain
maximum value from this Apple’s E-Recruitment software.
 Apple Inc.

6. Conclusion
This report find that Apple Inc is able to use its core competency in computer and
software area develop and improve organization’s HRM in recruitment by creating its
own in house software to overcome massive information of candidates in recruitment
process with shortest time and the best quality. From feasible summary, it conclude
that Apple’s E-Recruitment software had highly potential to be successful by using
small budget and high IRR rate at 74% and less than one year payback period. In
addition, the effective planning and failure analysis in all three stage of IS (Pre-
Implementation, Implementation and Post-Implementation) are key successful of
Apple’s E-Recruitment software development. Furthermore, with unique idea in
interactive E-Recruitment, it perfectly supports Apple’s differentiation strategy and
spread brand reputation of Apple.

For future E-Recruitment system of Apple Inc possibly is developed by integrating

with technology 2.0 because of the popularity of job searching with internet- based
and social net working that tend to higher trend in next decade.
 Apple Inc.

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