Recruitment of a Star

GROUP 2 - PRESENTORS NAME: YOGESH SINGH: REEMA SAXENA: MONALISA SIL: NUPOOR SINHA: SHWETA SAINI: 11PT-045 11PT-027 11PT-016 11PT-022 11PT-039

Introduction
 Rubin, Stern and Hertz (RSH) is an investment banking firm in New York.
 Stephen Connor is the director of research at RSH.  RSH Research department work is divided into : Sell Side: Investment Banks (brokerage houses) make money both through their underwriting business and trading conducted at their firms.  Buy Side: Money management firms which seek their clients money by purchasing stocks for their portfolios.

Role of research
Ultimate purpose of research at an investment bank is to help move securities. Sell side analysts research their particular industry and develop hypotheses concerning the economic future of the specific companies. On average, sell side analysts cover anywhere 10 to 18 companies within their industry. Buy side gain information both about their industry and the particular companies they cover in order to form investment strategies. Buy side analysts tend to cover a wider spectrum of 30 companies at a time.

Organizational Culture of RSH

 Strong corporate culture(especially in research wing)  Teamwork oriented, family like atmosphere.  Promoted strong collaboration and support instead of competitive culture.  Each analysts strove to become raked by Institutional Investor magazine(II) but also focused on the success as a whole.

Compensation Strategy at RSH

Teamwork led to superior company coverage. Bonuses(additional incentive) were linked not only to individual success but also to the success of the group. Senior analysts mentored junior analysts and there was a formal training program to mold promising analysts into superstars.

Hiring dynamics at RSH

 It was essential both to be a first rate analyst and to fit in well with the firm s culture.  RSH was dedicated to its employee and expected similar dedication in return.  It was common for people to remain for the bulk of their careers.  Low turnover rate

Problem recognition
 Announcement of resignation by a star semiconductor analyst - Peter Thompson.  Peter was RSH s only semiconductor analyst.  RSH was in need of strong coverage of the semiconductor industry because of an upcoming deal with the PowerChip Company.  Losing one analyst may open the door for other analysts to leave RSH which could lead a big impact on the firms trading-commission revenue.

List of Alternatives
To replace Peter with another star, even though we did have to pay him or her starlevel compensation. To hire a senior person from a regional firm. To hire a highly ranked or well-established senior analyst which may be willing to bring his junior along with them.

Interviewing Gerald Barum

Individual Factor Background Technology analyst, alumni of MIT & Yale school of management , belongs to a well educated family. Attitude Proactive, Aspiration Ranking with excellent compensation Past Short Term Performance Achieved ranking in II in 2003. Long Term Performance In 1995 II ranked him as a runner up. In 1998 ranking dropped In 2003 achieved ranking in II.

Interviewing Gerald Barum contd..

Organizational Factor Goltz & Loeb

Culture Informal, No team work approach but competitive environment. Strategies Specializes in technology companies and made many other unknown companies blossom Structure Less Supervisory Management System Individualistic

Evaluation - Gerald Barum

Strength
Covering semiconductor industry for only 18 months and he has already in 11th place in analyst rankings. Active travelling. Proactive in giving response to others (through email etc.). Exceptional client service. Excellent industry knowledge, stock picking etc.

Weakness
Sometimes impatient Unapologetic Negative approach - Blame others or circumstances for not getting work. Might turn out to be a job hopper. Immature behavior with juniors (firing junior). More concerned about compensation. Not fair in approach

Interviewing Sonia Meetha

 Individual Factor  Background Major in Engineering and MBA  Attitude Focused on organizational culture, promising and personable  Aspirations Global reach is important to her and looking forward to be a star.  Past short term and long term performances  Elegant financial models  Perfect timing of research reports with accuracy of stock picking.  Successfully done reports on two non U.S. semiconductor firms which was well received by clients.  Long range vision for the global franchises.  Up-and-comer mentioned by II Magazine

Interviewing Sonia meetha contd..

 Organizational Factor - WHS
 Culture There was no official training and development program. WHS analysts were essentially autonomous entities.  Compensation Strategies Linked to the amount of commission money employees generated.  Structure Minimal managerial staff and covered only certain industries.  Management System Supervisory micromanagement.

Evaluation - Sonia Meetha

Strength
Up-and-coming recognition by II magazine and 8th place in analyst rankings. Both technical and sales background Excellent writer and responsive to her clients Accurate in stock picking Good Interpersonal and communication skills Worked on 2 Non-U.S. semi conductor firms Connections with CEO s of some major companies

Weakness
Juggle for raising her two children Not willing to travel Lack of experience at larger firms.

Interviewing Seth Horkum

Background Lower middle class family, graduated in Economics from Harvard in 1982 and further did MBA from Columbia's business school Attitude Ambitious,workaholic,intelligent,ready to take challenges.High dedication towards work(Impact :could not balance personal & professional life) Aspiration To be a star Past Short Term Performance Recently ranked runner up in the II Analyst Rankings in the semiconductor industry. Long Term Performance Working with Jefferson for 15 years now , star performer throughout his career , always received appreciation for the quality of his research reports from his clients.

Interviewing Seth Horkum contd..

Organizational Factor Culture Competitive environment , individualistic growth oriented. Structure Semi formal. Performance Compensation and bonuses were linked to the performance revenues generation , report writing , II rankings , client interaction etc.) Management System minimal managerial authority.

Evaluation - Seth Horkum

Strength
5th place in analyst rankings Brilliant stock picker Workaholic , intelligent enthusiastic and loyal . Excellent Report Writer Congenial personality would help him to build up a large client base. Strong contacts at Power Chip

Weakness
Reason for leaving Jefferson after 15 years . First time ranking in II. Lack of experience in dealing with larger firms.

Rina Shea
Background MBA from Columbia s business school.Prior to RSH , worked at Win412, top technology firm in California Attitude Hard working and talented at her work, but due to her introvert nature , she took some time in collaborating with her co-workers. Aspiration To be a star (enthusiastic and interested)

Past Short Term & Long Term Performance Already working for RSH for more than 3+ yrs., got appreciation and recognition for her recent role.

Evaluation - Rina Shea

Strength Weakness Hard working and Introvert in nature talented Lack of experience Enthusiastic about her required for the current work(self motivated profile. and ambitious) Working for RSH for 3+ years

Interviewing David Hughes

 Individual Factor

 Background Electrical Engineer , MBA , Very experienced  Attitude Believe in interpersonal relations, demotivated (not self motivated)  Aspirations Recognition  Past short term and long term performances In 1976 he was junior analyst In 1979 he became senior analyst In 1982 he was an II runner-up In 1988 moved to spenser for recognition Ranked 4 times First and 5 times second

Interviewing David Hughes

 Individual Factor

 Background Electrical Engineer , MBA , Very experienced  Attitude Believe in interpersonal relations, demotivated (not self motivated)  Aspirations Recognition  Past short term and long term performances In 1976 he was junior analyst In 1979 he became senior analyst In 1982 he was an II runner-up In 1988 moved to spenser for recognition Ranked 4 times First and 5 times second

Interviewing David Hughes contd..

Organizational Factor Spencer s Company

Culture Strictly Formal Strategies First among global operation Structure Set Hierarchy Management System Standardized procedures

Evaluation - David Hughes

Strength
Bright and articulate. Technically sound Ranked 2nd Teamer by II magazine for past 15 years. Fantastic credentials. Famous Has leadership qualities

Weakness
Fixed pattern of work .Old fashioned. No out of box or 360 degree thinking. Hesitant to learn new skills. Casual and overconfident during interview.

Evaluation of External Sources

Advantages More Choices Availability of Talented candidates. More Experienced Candidate Disadvantage Expensive & Time consuming Unfamiliarity with the organization Discourage the existing employees.

Evaluation of Internal Sources

Advantages Familiarity with own employees or team members Better use of talent Encourage/ Motivate existing employees Disadvantages Limited choice. Discourage competition

S.NO

Description

Weightage

DAVID HUGES GERALD BAUM

SONIA MEETHA SETH HORKUM RINA SHEA

Culture Knowledge of RSH & Ability to Fit in RHS 1 Family (support for joining your company) 2 Fortune (and Glory to join RSH) & Importance to Compensation 3 Freedom (to make decisions) 4

30% 10% 10% 5%

20 8 5 2

17 8 3 2

18 8 4 3

25 8 5 3

22 9 3 2

Past mistakes and its awareness or RED FLAG (candidates who don't take responsibility for past mistakes ) or who speak poorly of most of their bosses) , Past Accomplishments, Previous bosses feedback

20%

10

5 6 7 Years of Experience Teamwork spirit

10% 15%

9 10

7 7

8 9

9 10

5 8

TOTAL

100%

64

50

57

69

55

Conclusion
Short Run Decision : Long Run Decision :