Case Analysis:

Recruitment of a Star
PROBLEM STATEMENT
To recruit a suitable replacement for RSH’s star analyst Peter Thompson

PESTC Analysis
Political – Nil

Economic:-

 Increased shuffling of jobs.

Social:-

 The environment required rigid competencies, high stamina, great communication skills,
and frequent client interaction.
 The industry average retirement age was approximately 45 to 50.

Technological:-

 Intensive use of technologies in research.

 Due to high competition, staying updated with latest technology provided the edge for
firms against its competitors.
 Many analysts were expected to provide prompt response to clients’ needs and come up
with latest financial instruments benefitting both company and clients.

SWOT of RSH:

Strengths:-

1. Work culture- Many analyst and industry experts believed that RSH work culture was
one of the main competitive advantages. This is so as the company gave space to its
analysts to work and allowed and encouraged team work. This ensured the employees felt
secured about their job thereby addressing the employees need for safety and social
needs.

2. Working in team helped to co-ordinate and achieve more. The employees felt that being
part of a team served them well. The company hence satisfied their need for affiliation.
 3. The interpersonal relations among employees were good and ensured harmony among
them.

4. With seniors helping juniors learn about the industry the work culture was informal and
the development process addressed employees need for achievement and self-
actualization.

5. Both the company and the employees believed that the quality of the research and success
of the department depended on team work. The employees displayed OCB and there was
a high employee engagement. This ensured that the productivity of the department was
high and also the employee turnover was low.

6. The awards at RSH were on performance of individual and team’s performance. Hence
the employees experienced equity at RSH. This led to loyalty of employees towards the
company.

Weaknesses:-

1. They don’t have any back up options for their semi-conductor senior analyst. As the
employee turnover is low the company takes long time to fill the vacant position.

2. Being a big firm and to avoid attention of other companies towards a vacant position they
have to rely on third party recruiters. This is time consuming.

3. The company finds it difficult to find people who can match the talent requirement and
also fit into company’s team culture.

Opportunity:-

1. Upcoming deal with Power Chip Company

Threats:-

1. Rival companies poaching talent pool of RSH.

2. Heavy dependence on one analyst for the semi-conductor.

SWOT for Peter:-

Strengths:-

1. High analytical skills and a sharp mind for stocks.

2. Go getter, dependable to assign work.

3. Proactive. Took lead in taking projects.

4. Star performer both with clients and at II.

5. Attracted many clients owing to his intelligence.

Weaknesses:-

1. Lone worker. Other team members grew uncomfortable working with him.

2. Very competitive nature that made team members feeling unsecured in his presence.

Threats:-

1. Peter’s departure from the firm might cause RSH to lose some customers.

2. With a big deal coming up with Power Chip Company, loosing Peter at this time can
harm the prospects of the deal.

3. The market being very competitive will try to lure other analysts and assistants from RSH
causing further problems for RSH.

Factors:-

 Ability to build relations with Sales force, traders and buy side
 Willingness to work in teams and guide junior analysts
 Access to upper management in companies
 Achieving, go getting attitude
 Analytical Skills
 Communication skills
 Industry knowledge
 Institutional Investor rankings
  Writing of reports
 Client oriented service (accessibility and responsiveness)
 Stock selection
 Industry connections

Critical Factors:-

 Ability to build relations with Sales force, traders and buy side
 Willingness to work in teams and guide junior analysts
 Access to upper management in companies
 Industry knowledge
 Institutional Investor rankings
 Client oriented service (accessibility and responsiveness)
 Writing of reports
 Stock selection
 Industry connections

Constraints – Company cannot commit to give anyone fixed salary as Semi conductor industry
is a very volatile industry. It experiences different amount of growth year by year.

SWOT of Individual candidates:-

David Hughes

STRENGTHS WEAKNESSES
 Celebrity in Wall Street  Growing old
 Ranked 1st four times, 2nd five times  Unable to fully use technology
and 3rd or runner-up for six times  Relies heavily on assistants
 Vast industry knowledge and rare
interpersonal skills
 Close relations with client
 Team player and excellent mentor
OPPORTUNITIES THREATS
 Expand the client base on his  Change of his personal priorities
reputation  Might retire soon
  Better guidance of junior members in
the firm
 Takes the work as a new challenge
which can get the best out of him
Gerald Baum
STRENGTHS
 Highly enthusiastic in semiconductor
industry
 Ranked 11th within 18 months of
joining as per II.
 Exceptional work and client service
 Great skill set as what industry needs
 Maintains active travel schedules and
replies promptly
OPPORTUNITIES
 Already a star and expected to rise in
ratings in future.
 Enjoys working at large institutions,
hence can leverage the resources
provided by the company.
Sonia Meetha
STRENGTHS
 Recognized as “up-and-comer” by II
 Technical and sales background
 Excellent writer
 Emphasizes on global markets
 Dedicated towards career
 More emphasis on culture which is a
 Lacks stamina to do work
WEAKNESSES
 Changed companies before landing at
Gotz and Loeb
 Negative attitude towards employer
and co-workers.
 Mistreats his subordinates
 Compensation as reward and source
of motivation
THREATS
 Will switch company if paid higher
 Spoil the existing team building
process
 Less respect for organization culture.
WEAKNESSES
 Worked for a small company (WSH)
 Needs lot of flexibility
 Not willing to travel
 key feature of RSH
OPPORTUNITIES THREATS
 High potential to become high ranked  May not be able to cope up with fast
 Can get many clients with her track work
connections  Changes her priority to parenthood

Seth Horkum
STRENGTHS WEAKNESSES
 Rated as runner up in II  Needs to improve on report writing
 Close contact with Buy side  Got ranked for the first time
 Loyal to firm
 Experienced in networking with sales
and trading.
 Dedication towards work
 Highly confident to grow up in
rankings
OPPORTUNITIES THREATS
 Right platform to achieve star status  Could be misused
in II.  Could be attracted other firms
 Makes maximum use of resources
available at the firm

Reena Shea
STRENGTHS WEAKNESSES
 Good technological expertise  Relies on senior analyst in technology
 Well versed with organization culture group
 Continuous improvement  Introvert and less assertive
demonstrated in work  Not recognised by II
OPPORTUNITIES THREATS
 Fast adaptability to changing  Mistake prone
 atmosphere.  Higher management not willing to
 Growing experience in industry. accept her as a replacement.

Analysis of Critical Factors:-

Critical Factor Gerald Baum David Sonia Meetha Seth Reena Shea
Hughes Horkum
Ability to build High
relations with (regarded as
Sales force, star in
Moderate Moderate High Moderate
traders and buy industry,
side which makes
this easy)
Willingness to
work in teams
and guide Low Moderate High Moderate High
junior analysts

Moderate (as
higher mgmt.
did not want
Access to upper her to be
management in Low High Low Moderate Senior Analyst
companies but she had
good rapport
with middle
mgmt.)
Industry
High Very High Moderate Moderate High
knowledge
Institutional
Investor Low High Moderate Moderate Low
rankings
Client
orientation
Moderate
(sales skills, Very
Low Moderate (Not willing Moderate
willingness to High
to travel)
travel,
accessibility)
Writing of
High High Very High High Moderate
Reports
Stock Selection High High Moderate High Moderate
Industry
Moderate High Moderate High Low
Connections
Options:-

 Replace Peter by another candidate from the 4 external candidates available.

 Retain Reena as a senior analyst permanently

Recommendation:-

After weighing in the pros & cons of hiring various candidates, we feel that David Hughes &
Seth Horkum are the most appropriate candidates for the position of Senior Analyst.

Gerald could have been a good choice but he doesn’t fit well with the culture of RSH.

Reena Shea seems to be inexperienced for the position. Stephen is right in considering her for the
senior analyst position of a smaller industry. This will give her the exposure & the confidence to
take on future leadership roles in the organization.

Out of Seth & David, Seth seems to be a better choice, though David’s experience cannot be
discounted. But if long term prospects of the organization are to be taken into consideration then
hiring a younger talent would prove to be more beneficial. RSH’s platform could propel Seth to
star rankings & make him a loyal asset for the company. Thus in our view Seth should be offered
the Senior Analyst position for the semiconductor industry.