Description
Case Study
Case study
Dynamo Industries is a medium-sized manufacturer of small electrical motors headquartered in Port Elisabeth, Eastern Cape. The firm employs 7 500 people. Dynamo Industries has plants in Port Elisabeth; Richards Bay, KZN; Rosslyn, Tswane; Kempton Park, Gauteng; Kimberley, Northern Cape and in George, Western Cape. All these plants are unionised although the power of the unions varies greatly.
Recently the company has been trying to a hire a new plant manager (see Exhibit 1 for job description) for the Kimberley plant (plant managers report directly to the general manager production). Although Dynamo Industries has experienced slightly above-average growth and profit compared to its competitors, the Kimberley plant has been a trouble spot. Over the past three years, production costs have been extremely high and there has been labour unrest (e.g. numerous work slowdowns, an excessive number of grievances filed). The most recent Kimberley plant manager was terminated, although by mutual agreement, the company stated he left for a better job with another company. Because of the importance of the plant manager position, Dynamo Industries has used several expensive selection devices. These devices are detailed below. After a thorough recruitment effort (both within and outside the company) and some initial screening, the list of job candidates has been reduced to eight names; Exhibit 2 contains extensive information on each of the eight candidates.
Dynamo Industries does not have an established philosophy for filling job openings. In the past, it has favoured promotion from within the company. However, the general manager production was hired externally. Dynamo has no policy on lateral transfers. In the recent past, such transfers have been rare. The key issue seems to be whether the company benefits from the transfer.
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EXHIBIT 1. Plant Manager Job Description (compiled by the General Manager Production)
The plant manager (PM) is ultimately responsible for the operating efficiency of the entire plant. In fulfilling his/her responsibilities, the PM regularly consults with subordinate supervisory personnel (the PM frequently delegates duties). A plant manager must be somewhat knowledgeable of production methods and the capabilities of equipment. Some of the activities the plant manager is directly or indirectly involved in include Procuring materials Maintaining the plant Controlling quality Utilising manpower Establishing budgets Revising production schedules because of equipment failure or operational problems Consulting with engineering personnel concerning the modification of machinery to improve production quantity, the quality of products and employee safety 8. Conducting hearings to resolve employee grievances 9. Participating in union-management contract negotiations 10. Ensuring safety 11. Establishing community relations 1. 2. 3. 4. 5. 6. 7.
EXHIBIT 2. Background Information of the Candidates
1. George Martin ± age 44. Education: BA, Pretoria University; M.A. (Industrial Relations), University of Kwa Zulu-Natal. He is the plant manager of a relatively small (420 non-union employees) plant (in Bellville, Western Cape) of one of Dynamo¶s competitors. He has been with that company for 14 years. Nor reference information was gathered because Martin was concerned about his present employer¶s reaction. 2. Tony Caciopo ± age 59. Education: high school graduate. He is an assistant plant manager (Rosslyn). Caciopo has been with Dynamo for 24 years. He has been the assistant plant manager at Rosslyn for the past 10 years. He had a severe heart attack four years ago but appears to have recovered. Ten years ago, he was offered a job as plant manager but turned it down because of health problems his wife was having. 3. Kathy Joyce ± age 36. Education: B.Econ, University of the Western Cape. She is currently the plant manager at the Kempton Park plant. She desires a lateral transfer because it would enhance job opportunities for her husband. Joyce has been with Dynamo for five years. She has been plant manager at Kempton Park for the past two years.
2
4. Barry Fein ± age 49. Education: B.Comm, University of the Witwatersrand. Until two months ago, Fein was plant manager at a large, unionised textile plant in Durban. Two months ago, the company Fein worked for discontinued this product line and he was retrenched. Fein had been with his former employer for 20 years and was plant manager for 5 years. His letters of reference were excellent. 5. Ron Jackson ± age 33. Education: B.A. Rhodes University; MBA, RAU. He is currently assistant plant manager at the Kimberley plant. He has been with the company for four years; he has been assistant plant manager for two years. He has served as acting plant manager at Kimberley for the past two months. 6. Jay Davis ± age 46. Education: B.Bus.Sc, University of Cape Town; MBA, UCT. He is currently assistant plant manager at Richards Bay. Davis has been with Dynamo for 10 years; the past 7 years he has been assistant plant manager (6 years in Port Elisabeth, the last year in Richards Bay. 7. Frank Hall ± age 58. Education: B.Sc. (chemistry), Stellenbosch University. He is currently vice general manager production for one of Dynamo¶s major competitors. He says he seeks a demotion so that he would not be required to travel so much. He has been in the vice general managerial position for the past six years. Before that he was a plant manager for 12 years. The plant was organised. No reference information is available. However, he has received outstanding reviews in trade publications for his performance as vice general manager. 8. Tom Doyle ± age 36. Education: B.Comm, University of the North; MBA, North-West University. For the past two years, Tom has worked as a special assistant to the vice general manager of production. Before this he was an assistant PM for two years and a PM (Rosslyn) for three years. Tom was the youngest PM ever appointed at Dynamo. He was very ineffective as a PM and after three years was removed from this position.
EXHIBIT 3. Personality Profiles of the Candidates
Characteristics the Candidates
of High Joyce
Ratings Medium Hall Low
Ability to handle Martin stress Caciopo Davis
Jackson Fein Doyle
Ability to resolve Joyce conflict Davis Caciopo
Martin Doyle Hall
Fein Jackson
3
Interpersonal skills
Martin Joyce
Hall Jackson Caciopo
Davis Fein Doyle Fein
Managerial skills
Martin Caciopo Davis
Joyce Doyle Hall Jackson
Note: Each of the eight candidates was assessed by a consulting psychologist. She used the Myers-Briggs Type Indicator (reliability = 0.66); the Occupational Personality Profile (reliability = 0.72; predictive validity = 0.56) and the Occupational Personality Questionnaire (reliability = 0.7; predictive validity 0.61) in calculating the above ratings.
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EXHIBIT 4. Interviewers¶ Ratings of the Candidates
General Manager Production George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson Jay Davis Frank Hall 6.5 5 6 4 5 4.5 6.5
General Manager HR 6 5.5 6.5 4 5.5 5 7
Plant Manager Richards Bay
Plant Manager Rosslyn
5.5 4.5 5 3 4.5 3.5 Interviewer not available for interview 4.5
4 6 5.5 4 5 6.5 4
Tom Doyle
5.5
6
6
Note: Each of the interviewers went through a one-day training programme. The General Manager Production¶s interviews averaged three hours in length. The others averaged 60 minutes in length. Interview ratings made on a seven-point scale (1 = poor candidate « 7 = excellent candidate). All interviews were semi-structured.
EXHIBIT 5. Intelligence Tests and Handwriting Analyses of the Candidates
Intelligence Test George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson 119 116 141 122 114
Handwriting Rating +3 +1 -1 0 +2
5
Jay Davis Frank Hall Tom Doyle
148 112 125
+2 +3 +3
Note: The intelligence test (Wechsler Adult Intelligence Scale) give by Dynamo Industries is commonly used for selecting candidates for management. Individuals scoring below 115 tend not to do well in managerial jobs. Standard error = 3.5, reliability = 0.91. A handwriting analyst rated the candidates for the job in terms of their likelihood of success as the Kimberley plant manager. (-3 = very poor prospect « +3 = very strong prospect).
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EXHIBIT 6. Promotability Ratings, Performance Ratings and Work Sample Scores
Promotability George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson Jay Davis Frank Hall Tom Doyle NA 6 5 NA 5.5 7 NA 5.5
Performance NA 5 6 NA 6 7 NA 6
Work Sample Score 19.5 15.5 18.5 18.5 18 16.5 19 17.5
Note: A promatability rating was made as part of the annual performance review (7 = ready for immediate promotion « 1 = should not be promoted). The performance ratings range from 1 = poor performance « 7 = exceptional performance. As part of the selection process, all applicants went through a series of work sample tests (i.e. inbasket, leaderless group discussion, and a production planning exercise). Scoring was done by trained raters from the human resources department. (20 = highest possible score).
Q From the above case design a complete matrix of the selection process of each of the candidate separately. You then have to decide the first three candidates you would be selecting and why. Also give reasons for each candidate as to why have you rejected?
7
doc_726914166.docx
Case Study
Case study
Dynamo Industries is a medium-sized manufacturer of small electrical motors headquartered in Port Elisabeth, Eastern Cape. The firm employs 7 500 people. Dynamo Industries has plants in Port Elisabeth; Richards Bay, KZN; Rosslyn, Tswane; Kempton Park, Gauteng; Kimberley, Northern Cape and in George, Western Cape. All these plants are unionised although the power of the unions varies greatly.
Recently the company has been trying to a hire a new plant manager (see Exhibit 1 for job description) for the Kimberley plant (plant managers report directly to the general manager production). Although Dynamo Industries has experienced slightly above-average growth and profit compared to its competitors, the Kimberley plant has been a trouble spot. Over the past three years, production costs have been extremely high and there has been labour unrest (e.g. numerous work slowdowns, an excessive number of grievances filed). The most recent Kimberley plant manager was terminated, although by mutual agreement, the company stated he left for a better job with another company. Because of the importance of the plant manager position, Dynamo Industries has used several expensive selection devices. These devices are detailed below. After a thorough recruitment effort (both within and outside the company) and some initial screening, the list of job candidates has been reduced to eight names; Exhibit 2 contains extensive information on each of the eight candidates.
Dynamo Industries does not have an established philosophy for filling job openings. In the past, it has favoured promotion from within the company. However, the general manager production was hired externally. Dynamo has no policy on lateral transfers. In the recent past, such transfers have been rare. The key issue seems to be whether the company benefits from the transfer.
1
EXHIBIT 1. Plant Manager Job Description (compiled by the General Manager Production)
The plant manager (PM) is ultimately responsible for the operating efficiency of the entire plant. In fulfilling his/her responsibilities, the PM regularly consults with subordinate supervisory personnel (the PM frequently delegates duties). A plant manager must be somewhat knowledgeable of production methods and the capabilities of equipment. Some of the activities the plant manager is directly or indirectly involved in include Procuring materials Maintaining the plant Controlling quality Utilising manpower Establishing budgets Revising production schedules because of equipment failure or operational problems Consulting with engineering personnel concerning the modification of machinery to improve production quantity, the quality of products and employee safety 8. Conducting hearings to resolve employee grievances 9. Participating in union-management contract negotiations 10. Ensuring safety 11. Establishing community relations 1. 2. 3. 4. 5. 6. 7.
EXHIBIT 2. Background Information of the Candidates
1. George Martin ± age 44. Education: BA, Pretoria University; M.A. (Industrial Relations), University of Kwa Zulu-Natal. He is the plant manager of a relatively small (420 non-union employees) plant (in Bellville, Western Cape) of one of Dynamo¶s competitors. He has been with that company for 14 years. Nor reference information was gathered because Martin was concerned about his present employer¶s reaction. 2. Tony Caciopo ± age 59. Education: high school graduate. He is an assistant plant manager (Rosslyn). Caciopo has been with Dynamo for 24 years. He has been the assistant plant manager at Rosslyn for the past 10 years. He had a severe heart attack four years ago but appears to have recovered. Ten years ago, he was offered a job as plant manager but turned it down because of health problems his wife was having. 3. Kathy Joyce ± age 36. Education: B.Econ, University of the Western Cape. She is currently the plant manager at the Kempton Park plant. She desires a lateral transfer because it would enhance job opportunities for her husband. Joyce has been with Dynamo for five years. She has been plant manager at Kempton Park for the past two years.
2
4. Barry Fein ± age 49. Education: B.Comm, University of the Witwatersrand. Until two months ago, Fein was plant manager at a large, unionised textile plant in Durban. Two months ago, the company Fein worked for discontinued this product line and he was retrenched. Fein had been with his former employer for 20 years and was plant manager for 5 years. His letters of reference were excellent. 5. Ron Jackson ± age 33. Education: B.A. Rhodes University; MBA, RAU. He is currently assistant plant manager at the Kimberley plant. He has been with the company for four years; he has been assistant plant manager for two years. He has served as acting plant manager at Kimberley for the past two months. 6. Jay Davis ± age 46. Education: B.Bus.Sc, University of Cape Town; MBA, UCT. He is currently assistant plant manager at Richards Bay. Davis has been with Dynamo for 10 years; the past 7 years he has been assistant plant manager (6 years in Port Elisabeth, the last year in Richards Bay. 7. Frank Hall ± age 58. Education: B.Sc. (chemistry), Stellenbosch University. He is currently vice general manager production for one of Dynamo¶s major competitors. He says he seeks a demotion so that he would not be required to travel so much. He has been in the vice general managerial position for the past six years. Before that he was a plant manager for 12 years. The plant was organised. No reference information is available. However, he has received outstanding reviews in trade publications for his performance as vice general manager. 8. Tom Doyle ± age 36. Education: B.Comm, University of the North; MBA, North-West University. For the past two years, Tom has worked as a special assistant to the vice general manager of production. Before this he was an assistant PM for two years and a PM (Rosslyn) for three years. Tom was the youngest PM ever appointed at Dynamo. He was very ineffective as a PM and after three years was removed from this position.
EXHIBIT 3. Personality Profiles of the Candidates
Characteristics the Candidates
of High Joyce
Ratings Medium Hall Low
Ability to handle Martin stress Caciopo Davis
Jackson Fein Doyle
Ability to resolve Joyce conflict Davis Caciopo
Martin Doyle Hall
Fein Jackson
3
Interpersonal skills
Martin Joyce
Hall Jackson Caciopo
Davis Fein Doyle Fein
Managerial skills
Martin Caciopo Davis
Joyce Doyle Hall Jackson
Note: Each of the eight candidates was assessed by a consulting psychologist. She used the Myers-Briggs Type Indicator (reliability = 0.66); the Occupational Personality Profile (reliability = 0.72; predictive validity = 0.56) and the Occupational Personality Questionnaire (reliability = 0.7; predictive validity 0.61) in calculating the above ratings.
4
EXHIBIT 4. Interviewers¶ Ratings of the Candidates
General Manager Production George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson Jay Davis Frank Hall 6.5 5 6 4 5 4.5 6.5
General Manager HR 6 5.5 6.5 4 5.5 5 7
Plant Manager Richards Bay
Plant Manager Rosslyn
5.5 4.5 5 3 4.5 3.5 Interviewer not available for interview 4.5
4 6 5.5 4 5 6.5 4
Tom Doyle
5.5
6
6
Note: Each of the interviewers went through a one-day training programme. The General Manager Production¶s interviews averaged three hours in length. The others averaged 60 minutes in length. Interview ratings made on a seven-point scale (1 = poor candidate « 7 = excellent candidate). All interviews were semi-structured.
EXHIBIT 5. Intelligence Tests and Handwriting Analyses of the Candidates
Intelligence Test George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson 119 116 141 122 114
Handwriting Rating +3 +1 -1 0 +2
5
Jay Davis Frank Hall Tom Doyle
148 112 125
+2 +3 +3
Note: The intelligence test (Wechsler Adult Intelligence Scale) give by Dynamo Industries is commonly used for selecting candidates for management. Individuals scoring below 115 tend not to do well in managerial jobs. Standard error = 3.5, reliability = 0.91. A handwriting analyst rated the candidates for the job in terms of their likelihood of success as the Kimberley plant manager. (-3 = very poor prospect « +3 = very strong prospect).
6
EXHIBIT 6. Promotability Ratings, Performance Ratings and Work Sample Scores
Promotability George Martin Tony Caciopo Kathy Joyce Barry Fein Ron Jackson Jay Davis Frank Hall Tom Doyle NA 6 5 NA 5.5 7 NA 5.5
Performance NA 5 6 NA 6 7 NA 6
Work Sample Score 19.5 15.5 18.5 18.5 18 16.5 19 17.5
Note: A promatability rating was made as part of the annual performance review (7 = ready for immediate promotion « 1 = should not be promoted). The performance ratings range from 1 = poor performance « 7 = exceptional performance. As part of the selection process, all applicants went through a series of work sample tests (i.e. inbasket, leaderless group discussion, and a production planning exercise). Scoring was done by trained raters from the human resources department. (20 = highest possible score).
Q From the above case design a complete matrix of the selection process of each of the candidate separately. You then have to decide the first three candidates you would be selecting and why. Also give reasons for each candidate as to why have you rejected?
7
doc_726914166.docx