AMOCO CORPORATION PROJECT AMOCO FINLAND TEAM 6: SELECTION BY HENRIK FRIBERG ANTTI GLAD JOHANNA HYTTINEN KATARIINA PUSA TIIA RISSANEN JENNI TORIKKA
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1 AMOCO CORPORATION PROJECT AMOCO FINLAND TEAM 6: SELECTION BY HENRIK FRIBERG ANTTI GLAD JOHANNA HYTTINEN KATARIINA PUSA TIIA RISSANEN JENNI TORIKKA
2 TABLE OF CONTENTS 1) ORGANIZATIONAL CHART 2) SELECTION PROCESS 3) TIMING OF SELECTION 4) SELECTION PROCESS CHART 5) SOURCES OF INFORMATION CHART 6) TOOLS 7) INTERVIEW METHODS 8) GUIDELINE 9) PSYCHOLOGICAL TESTS 10) JOB DIMENSIONS 11) EVALUATION DURING THE INTERVIEW 12) APPLICATION FORM 13) INTERVIEW FORM
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4 SELECTION PROCESS: WHO, WHEN, HOW The selection process will proceed "top-down", the top level: the CEO, and the Functional Directors will be selected first. The selection of the middle level e.g. Middle and District Managers will follow next. This is why we need careful and precise tests in selection. As the organization grows further the entry level positions will be filled. CEO CEO will be internally recruited by the US headquarters. FUNCTIONAL DIRECTORS: MARKETING, OPERATIONS, FINANCE AND HUMAN RESOURCE Amoco will hire an external company performing selection process e.g. Mercuri Urval, to carry out the first screening process from the initial pool of applicants. The candidates selected will proceed to the final interview performed together by Mercuri Urval, Amoco USA and the CEO of Amoco Finland. These people will complete the selection process. MIDDLE MANAGERS When the Director of the Human Resource department has been selected he/she will start working together with Mercuri Urval to carry out the selection process. They will perform the first screening of the Middle Manager applicants. The Functional Directors will use their expertise to determine the qualifications and skills needed for Middle Managers. Directors of Marketing, Operations and Finance will perform the second interview and make the final selection for their departments with the Director of HR. District Managers for The Three Flagship Stations The first phase of the selection will be performed similarly as with the other Middle Managers. Prior to the final interview the Director of Operations will consult with the CEO to hear his/her requirements and opinions about the candidates. Based on the CEO's recommendations the final decision will be made by the Director of Operations and the HR Manager. ENTRY LEVEL Middle Managers will determine the qualifications needed to perform the different entry level tasks (e.g. assistants.) The interview and final decision will be made by the Middle Managers based on the HR selection guidelines.
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6 SELECTION PROCESS Completion of Application Form Top Management Middle Management Entry Level CEO Functional Directors Amoco US X X X Initial Interview Amoco US Mercuri Urval Mercuri Urval - Employment Tests Amoco US Mercuri Urval Mercuri Urval Amoco Finland HR department Background Investigation Amoco US Mercuri Urval Mercuri Urval - Preliminary Selection Supervisory Interview Amoco US Mercuri Urval Mercuri Urval - Amoco US CEO, Mercuri Director(s) Amoco Finland Middle Manager Medical Examination & Drug Testing Amoco US Medical Co-op Partner Medical Co-op Partner Medical Co-op Partner Hiring Decision Amoco US CEO Director(s) Amoco Finland Middle Manager
7 SOURCES OF INFORMATION Sources of Information Top Management Middle Management Entry Level Application Form X X X Resume X X X Interview X X X Background Investigations: References X X X Colleagues X Former X Subordinates Credit Reports X X Tests X X X Legal Aspect The national laws regulating the selection process: Law of Privacy Protection (Tietosuojalaki) Collective Agreements Act and Labor Legislation (Työsopimuslaki) Law of Personal Data (Henkilörekisterilaki)
8 TOOLS USED IN THE SELECTION PROCESS The selecting of the Board of Directors (CEO, Dir. of Finance, Dir. of Human Resources, Dir. of Operations and the Dir. of Marketing) will be done using a the following tools: * application forms * resumes * background checks (references, credit reports) * interviews (2) * psychological tests * graphology * job sample test/simulation * medical and drug tests By using these tools, the following qualities and skills are sought: * integrity * ethics * analytical skills * communication skills * planning and organizational skills * teamwork skills * leadership skills * interpersonal skills * language skills * functional skills Middle management and entry level selection will be conducted using the following tools: * application forms * resumes * background checks (references and credit reports) * interview(s) * job knowledge tests * psychological tests * medical and drug tests The general skills and qualities sought by these tests are: * functional skills * planning and organizing skills * communication skills * interpersonal skills
9 In addition to the above, other specific qualities and skills needed for individual positions are as follows: controller: * numerical ability * abstract reasoning skills * problem solving skills advertising assistant: * creativity district manager: * leadership skills VALIDITY ISSUES A combination of different tools is used in the selection process in order to achieve the highest possible overall validity. This leads to a higher chance of hiring the best performers for the jobs. Validity of the tests used should also be ensured by careful formulation of the individual tests.
10 INTERVIEW METHODS We considered that Amoco should use combination of unstructured and patterned interviews. Especially with higher level positions unstructured interview might reveal facts that we could not ask in patterned interview. On the other hand, patterned interview gives us validity and comparability between candidates. We should use this combination clearly in this order (unstructured first, patterned second), while after patterned interview, candidates are less likely to open to the interviewer. We should keep unstructured interview shorter and quite clear, so we can avoid asking about same things twice in patterned interview section. Use of unstructured interview first, might also ease the anxiety that candidate feels at beginning of the interview, before we move to use patterned phase. Since in the unstructured interview candidate controls the flow of the information, we don't see need for develop specific questions to be asked. For example, interviewer might ask candidates to describe themselves, or ask about their earlier career. When interview moves to the patterned phase, interviewer should have clear list of questions to follow. Of course different tasks require different skills from the candidates, so we have to prepare different sets of questions beforehand derived from job descriptions. Next we present examples of questions to find out specific skills that are required in different jobs. SAMPLE INTERVIEW QUESTIONS FOR JOB RELATED SKILLS In selection methods section we defined some skills sought for our example candidates. In this section we will give one or more sample questions for the interview session that will try to identify those skills in our candidates. Interviewer should pay close attention to candidates nonverbal communication as these questions are asked, in case this he or she feel unsecured in this area or try to lie. Interviewers should know what they want to know about candidates when asking these questions, so it should be made clear to them beforehand.
11 SKILLS AND SKILL RELATED INTERVIEW QUESTIONS Skill Sample question(s) 1) analytical skills Can you tell what are the strengths and weaknesses of Amoco Finland corporation? 2) strategic skills What this organization is/should be doing after five years? 3) language skills Would you be able to negotiate and bargain in foreign language? 4) decisiveness If you know that your superior is wrong and you are right, would you pursuit your point of view? 5) abstract reasoning skills Do you enjoy solving hard mathematical problems? 6) problem solving skills Tell me about some great obstacle in your life and how did you overcome it? 7) creativity Tell me how our new flagship station should look like? 8) interpersonal skills How would you friends/peers evaluate you as a person? Do you think people around you respect you and why? 9) integrity Do you think that you usually succeed no matter what you do? 10) ethics Will you tell customer about nest week s rebate? Will you conceal that your supervisor is claiming more money that he or she spend? 11) ecological thinking Do you sort your trash and how is it done? Do you prefer driving to work with you own car, or do you use public transportation? 12) communication skills Would you feel comfortable giving presentation in the front of large audience? How can you see if somebody is lying? 13) planning and organizing Describe the situation where you had to lead group of people to do skills something within tight time and budget limit, and how did you do that? 14) teamwork skills How would you describe yourself as a team worker? What supports your statement? 15) functional skills Can you describe the main tasks involved in the particular job? 16) leadership skills Tell about the last time you were successful in leading others to meet a goal. Describe a recent situation where you had to go the extra mile to get something done.
12 GUIDELINES FOR THE INTERVIEWERS 1. Before the interview: * Order necessary documents. * Go through the job dimensions, interview body and questions. * Review the resumes. * Set your mind to the interview and remember your training. Remember to fill up all the forms and take exact notes during the interview! 2. Beginning of the interview: * Introduce yourself and explain the structure. * Make the candidate feel at ease (small talk). * Explain that you are taking notes. * Ask: "Do you have any questions about the interview process before we begin?" 3. Unstructured part of the interview: *Give a guiding question, type: "Tell about yourself'. * Let the applicant speech freely, but don't loose the control. * Keep this phase in the required time-limit. 4. Patterned part of the interview: * Explain that you have moved to the patterned part. * Use the questions prepared beforehand. * Be sure that you get the information you are searching for. * Be ready to elaborate the relevant facts affecting the decision. 5. Closing of the interview. * Ask if applicant has any questions and give positive and specific answers. * Inform the applicant how soon he/she will be contacted. * Thank for the time spent politely.
13 PSYCHOLOGICAL TESTING The psychological tests will be done before the second interview by the Mercury Urval, because of the special skills needed to develop, perform and evaluate the tests. We suggest personality testing (such as Myers-Briggs type indicator) for the board of directors of the company, so that their personalities will match with each other and they would perform a creative and successful team. Personality tests' meaning is to test the range of personality characteristics, such as emotional adjustment, self-confidence and perseverance. Also tests evaluating the supervisory and managerial abilities are required to see the administrative skills and decision-making abilities, ethics and integrity skills of the applicants as requested. When providing personality testing for the middle-managers of the company, attention will be paid to personal characteristics required for the job. Tests providing the supervisory and managerial abilities will be done to see the applicants planning, organizing and decision-making abilities. Teamwork abilities as well as ethics are also very relevant for a person working in the middle-management of the company. Also some aptitude tests could be recommended to test the applicant's intelligence in his own operational field. The personality tests will also be done in the entry level selection. The personality characteristics required are very much equal to the ones required from the middle-managers due to the future promotions. Aptitude tests are relevant especially in the entry-level to evaluate the intelligence in the area of ones specialization. The career development programs made for the employees will be based on these tests The personality tests should also be done for the franchisees to determine the entrepreneurs, and the ability to take responsibility and to be able to work under stress. Characters such as loyalty, ethics, trustworthy and leadership skills are also important to persons working as franchisees. Multiaptitude tests are relevant to see the skills in different areas such as verbal, numerical, spatial and mechanical comprehension.
14 JOB DIMENSIONS Dimension BUSINESS ACUMEN Business function relations Economic impact of business decisions COMMUNICATION Clarity, completeness, accuracy Top Middle Entry Question* Oral Written Listening Non verbal DECISION MAKING Quality of the decision, who is involved, the impact of the decisions, Appropriate risk taking Judgment Decisiveness DIVERSITY AND INTERPERSONAL SAVVY Respect all people and points of views Anti discriminatory behavior Understanding all levels Diplomacy and tact PLANNING & ORGANIZING Getting work done, efficiently & in time Effective use of resources TEAMWORK Cooperative effort throughout organization Gaining and giving trust Motivate others Ability to build rapport Key: 4=Essential (High degree of skill needed for success) 3=Important (Considerable skill needed for success) 2=Useful, but not important (skill somewhat helpful) 1=Unnecessary (Skill would seldom enhance performance) *The number of sample question
15 EVALUATING CANDIDATES DURING THE INTERVIEW In addition to skills, we will want to know how candidates look, behave and act. Therefore we will develop specific form where candidates appearance and behavior can be rated in the scale from poor to superior. Things that we will evaluate here will be: * appearance * preparation for interview * verbal communication * maturity * sincerity * personality * overall evaluation This type of evaluation should be conducted uniform way in order to rate candidates validly. This also puts pressure to that we train our interviewers to understand and use right way these measures
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17 We have improved significantly the outlook of our original report. Would you please be so nice and look at it. We would highly appreciate it.
18 REVIEW OF JOB PLANNING AND REQUIREMENT TEAM REPORT Reorganizing the distribution of stations: -25 in Southern cities -25 in other Southern Finland -50 elsewhere in Finland Develop the whole organization immediately
19 REVIEW OF JOB PLANNING AND REQUIREMENT TEAM REPORT Increase the amount of assistant managers from two to three per station AMOCO should take advantage of their already established advertising agency Separate, small posts in marketing department
20 REVIEW OF ORGANIZATIONAL STRUCTURE Helsinki, Espoo & Vantaa combined to one district The three flagship stations would have an own district manager District managers would do the facility inspecting Station managers working for the franchisers, not AMOCO
21 DIRECTOR OF FINANCE Establishes financial policy and objectives Responsible for significant corporate investment and financing decisions Oversees both the treasurer's and controller's work General managerial responsibilities beyond strictly financial issues
22 DIRECTOR OF HRM Performs professional human resources responsibilities: establishes the HR program formulates the HR planning, sets up employment, training and compensation policies to the US AMOCO principles builds up the AMOCO spirit
23 ADVERTISING MANAGER Responsible for marketing functions in advertising: contacts with regular clients plans advertisements and promotion campaigns; national, local, special communication with the outside advertising agency outlook of publications
24 STATION MANAGER Responsible for operating performance of individual station sites: evaluates, recognizes, rewards and motivates station associates recruits and screens core group of the staff, coaches it on side performs cash drawer audit, staffs stores
25 JOB DESIGN & BEHAVIORAL CONSIDERATIONS Job enlargement, job enrichment and job rotation on management level: job enlargement & job enrichment: implemented together especially in the marketing and HRM depart. job rotation: merely impossible to implement on a management level
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27 Group 6. Appendix Additions and adjustments to the selection process: Who, When, How CEO Finnish CEO will be selected to work with the American CEO. He or she will provide the expertise from the Finnish markets and will take over the leadership after couple of years. Mercuri Urval will perform the selection process with the help of American CEO. He or she will make the final selection. FUNCTIONAL DIRECTORS Amoco US will participate in the selection process only through the CEO. MIDDLE MANAGERS The Functional Directors will perform the second interview with the help of the Director of HR. Each of the Directors will make the final selection for their departments. There will only be one District Manager for the three flagship stations. The final selection will be made by the Director of Operations.
28 Appendix II. TOOLS THAT WILL BE USED IN THE SELECTION PROCESS Changes made after the Tele-Conference The primarily tools used in the Selection Process will be the * application forms and the resumes of the applicants * background checks such as references and credit reports and * interviews Depending of the budget available also psychological tests, graphology and job sample test/simulation can be performed. The Mercury Urval is asked to do three different expense estimations of different testing methods that could be used in order to provide the selection. From these estimates we then select the one we think is the most accordant with our purposes and with our budget limit. Medical testing for the applicants will be done just before the actual selection in order to see if some of the applicants in the final stage has a very serious illness. Drug testing will be performed during the same process, though we are aware of the contradictory feelings such a test rises in our society. This is mainly because the drug problem does exist in Finland, though many persons don't admit it, and in the future it will be necessary to provide these tests.
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