Quiz 5: Planning for and Recruiting Human Resources


A developed company and developing company are the two major types of firms. The developing stage company is also known as growing companies. Internal recruiting through promotions and transfers is a good option for the developed companies. But when it comes to growing company, then internal recruiting can be done only to some extent. The reason is simple and clear. The growing company require many ideas, skills and innovative approach to compete in the market. The new talents help a growing company in diversification and new way of doing business, while the existing talent can help a company only to some extent. This is why the companies like google, yahoo, and apple believe in internal recruiting but companies like Panasonic, Onida and Samsung believes in external recruiting.

During the period of economic downturn, continuous downsizing of operation, to reduce the cost, would be ineffective, because it would lead to over burden on the existing employees. The same amount of work is divided amongst the other workers. This leads to tension and frustration among the workers, who now have to share the work by multiple amounts. This would create resentment among other workers and eventually their creative and productive capacity would get reduced. As a result, under performance by most of the employees would eventually lead to overall decline in productivity, and hurts the firm in the market. In the given case, design work was taken into account. Designing needs creativity and requires a lot of time. This creativity also leads to the better productivity. If such employees are overloaded then the productivity would go down very badly.

The demand and supply at IT companies are always unequal. The demand is more and supply is less. IT companies therefore wants to retain their existing talent. But in this company, it looks like a very difficult situation. Employees want to change their jobs so desperately that they do not miss a single call from consultancies for job change. This shows that the demand at Company Y is more than that of supply of the workforce.