USEK | Case: Hiring the educated – A new approach to staffing the automobile factory | Human Resource Management – A strategic Approach |

Assaf Ramy – Saad Elissar
11/28/2012
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Introduction

This article explains how the automobile industry changed from being dominated by less educated workers to the highly educated workers over the years; it also explains the reasons that made this change occur through studying the staffing process of Ford and Chrysler. The main reasons for this change are four: * Skilled craftsmen are replaced by high-tech machines which needed educated employees to run them instead of increasing the training costs by keeping the uneducated and training them. * Team-based management became a necessity in these factories; the factories needed more educated workers because they are more able to supervise themselves * The nature of the work is changing which requires more educated workers especially in to help with fixing any arising production problem. * Competition is changing since all the automobile factories are on the worldwide market and they needed qualified workers in order to compete with each other.
In this case, we also see how Chrysler started its process from high schools and how Ford created a new selection system.

Question 1: What do you think Ford’s overall strategic perspective is? How well does its new selection system support this strategy?

Ford is looking for better educated employees to staff their line because everything is changing in today’s world. Its overall strategic perspective is based on lowering costs of training old workers and competing against all automobile manufacturers on the global market.
The new selection system focuses in its first phase on the educational exam such as the math exam & the manual comprehension exam and then on the physical abilities to do the required job; this type of exam does support the strategy in a way that it searched for the better educated people before searching for the people who are able to perform the job needed. By choosing better educated workers who can physically do the job the strategic perspective of lowering training cost can be achieved.
As for competing in the global market, the new selection system can help the company by choosing the best fit as employees but it can’t tell us how well they will do in the global market especially since the turnover issue is not answered.

Question 2: What steps are included in Ford’s selection procedure? According to the chapter, what other techniques could it incorporate?

The steps used in Ford’s selection system are: 1. Testing: a 3.5 hours exam that includes math (fractions and percentages), reading technical material and answering questions about it, dexterity test, and demonstrating the ability to work as a team. 2. Reference checks: making sure that the candidates had a solid work history. 3. Interviews by at least two employees responsible of selection 4. Drug test 5. Physical examination
According to the selection process mentioned in the chapter, Ford could add to its system a verification and criminal background checks. In the testing phase, Ford could also use the trainability test, the personality test and the general interest inventories.
It can also use an external recruiting technique such as college recruiting which involves communication with college graduates aiming at encouraging them to work in the company.
In addition to this method, Ford can create an internship program that would allow the company to have a chance to check who are potential candidates for the future and then when they need to recruit they have a pool of candidates who are already acquainted with the company, its work and its culture.

Question 3: Are there any other factors that are causing the auto companies to alter their selection procedures and look for more educated employees?

The factors are: * The new technological changes (high-tech factories) and sophisticated technology. * The high training costs of non-educated employees. * The appearance of team-based management and the need for employees who can supervise themselves due to the ratio of supervisor/worker increasing from 1/25 to 1/48. * The changing nature of work, educated people are more capable of identifying problems and finding solutions for them. * The competition in the global market which necessitates qualified workers to be up to the challenge. * Due to the high level of unemployment and the rare opportunities in the market for educated people looking for a job, these people are now indirectly interested in these jobs that were once beneath them since they need the work and the salary. * Create the manufacturing workforce that will facilitate the needed products and process innovations in an evolving global business climate.

Question 4: How do you think this scenario will play out? Will the educated workers leave? Will they stay?

Retaining employees is very important and difficult especially when they are well educated and have a boring job. In order to retain their employees Ford must take care of the following factors that affect their commitment: * Be seen by the employees as a market leader thus people who think of leaving will be taking a step down. * Empowering employees with decision making. * Have a reputation as a good employer which will be the result of satisfied employees. * Make employees consider the company as their second home. * Create opportunities for the employees to develop and learn new skills. * Salary equity (internally and externally with competing companies). * Career opportunities * Work/life balance (especially in the manufacturing business such as this one)

Remains to mention that, if the work continues to be tedious, boring and relentless, the turnover rate will surely stay high.

Question 5: What type of work will the high school dropouts and immigrants who used to be selected to work in these car plants now be doing?

Since technology is emerging in our days very few of high school dropouts can still work the jobs that they previously occupied. The ones who have high skills will still be hired but maybe as temporary or part-time workers. They will still fill only the blue collar jobs if they don’t require any educated employees such as maintenance, construction and mining.

Question 6: What benefits will Chrysler get from educating high school student?

Chrysler’s initiated a program aiming to educate and prepare students in high schools to become potential future employees at their factory. The benefit of this program is to have a pool of candidates from which to choose the best fits for the company.
When Chrysler needs to recruit from this pool, the candidate already knows the company, what the job is, how to do each task, the culture inside the organization and the previous sessions attended at the high school facilitated the process of moving from school to the working environment.