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Principles and Practices of Management




                    Notes


                                     Case Study  Which is more Important – Recruiting or Retaining?

                                            ptron Electronics Limited, is a pioneering and internationally reputed firm in the
                                            Electronics  industry. It is one  of the  largest firms  in the country. It attracted
                                     Uemployees from internationally reputed  institutes and  industries by  offering
                                     high  salaries, perks,  etc. It has advertised for the  position of  an Electronics Engineer
                                     recently.  Nearly  150  candidates applied  for the  job.  Mr  Sashidhar,  an  Electronics
                                     Engineering Graduate from Indian Institute of Technology with 5 years working experience
                                     in a medium-sized electronics firm, was selected from among the 130 candidates who took
                                     tests and interview. The interview board recommended an enhancement in his salary by
                                       5,000 more than his  present salary at his  request. Mr. Sashidhar was very happy to
                                     achieve  this and he was congratulated by  a number  of people  including his  previous
                                     employer for his brilliant interview performance, and wished him good luck.
                                     Mr. Sashidhar joined Uptron Electronics Ltd, on 21st January, 2002, with great enthusiasm.
                                     He also found his job to be quite comfortable and a challenging one and he felt it was
                                     highly prestigious to work with this company during the formative years of his career. He
                                     found his superiors as well as subordinates to be friendly and cooperative. But this climate
                                     did not  live  long.  After one year of  his service, he  slowly  learnt  about  a number  of
                                     unpleasant stories about the company, management, the superior-subordinate relations,
                                     rate of employee turnover, especially at higher level. But he decided to stay on as he had
                                     promised several things to the management in the interview. He wanted to please and
                                     change the attitude of management through his diligent performance, firm commitment
                                     and dedication. He  started maximising his contributions and the management got the
                                     impression that Mr. Sashidhar had settled down and will remain in the company.
                                     After some  time, the superiors started riding rough-shod over Mr.  Sashidhar. He was
                                     over-loaded with multifarious jobs. His freedom in deciding and executing was cut down.
                                     He was ill-treated on a number of occasions before his subordinates. His colleagues also
                                     started  assigning  their  responsibilities  to  Mr  Sashidhar.  Consequently there  were
                                     imbalances in his family life, social life and organisational life. But he seemed to be calm
                                     and contented. Management felt that Mr. Sashidhar had the potential to bear with many
                                     more organisational responsibilities.
                                     So the General Manager was quite surprised to see the resignation letter of Mr. Shashidhar
                                     along with a cheque equivalent to a month's salary one fine morning on 18th January,
                                     2004. The General Manager failed to convince Mr. Sashidhar to withdraw his resignation.
                                     The General Manager relieved him on 25th January, 2004. The General Manager wanted to
                                     appoint a committee to go into the matter immediately, but dropped the idea later.
                                     Questions
                                     1.   What prevented the General Manager from appointing a committee?

                                     2.   What is wrong with the recruitment policy of the company?
                                     3.   Why did Mr. Sashidhar's resignation surprise the General Manager?


                                   10.4 Selection

                                   Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc., of an
                                   applicant in relation to the requirements of the job to determine his suitability for the job. The




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