Recruitment and selection at ibm pakistan

Human Resource Management
GROUP PROJECT
Recruitment and Selection at IBM
Pakistan
Submitted To:
Dr. Faisal Asghar Imam

Recruitment and Selection at IBM Pakistan Page 1
1.0 Introduction
Human Resource Management is a vast term. It comprises of planning, recruitment,
selection, training, development, discipline, employment legislation, reward and
recognition systems, etc.
Recruitment and selection are two of the most important functions of Human
Resource Management. Although these are distinct processes, yet they are closely
interrelated with each other. Together recruitment and selection forms the core part
of the central activities underlying Human Resource Management.
Recruitment is the process through which the organization seeks applicants for
potential employment.
Selection is the process of differentiating between applicants in order to identify and
hire those with a greater likelihood of success in a job.
"Recruitment provides the candidates for the selector to judge. Selection techniques
cannot overcome failures in recruitment; they merely make them evident" (Watson,
1994, p203).
Today, recruitment and selection is viewed as a two-way exercise where not only the
organization is evaluating the candidates but the candidates are also actively
evaluating the organizations.
1.1 Aims and Objectives
The basic aim of this project is to study
the contemporary trends in recruitment
and selection process and observe their
practical application and presence in a
dynamic organization in Pakistan. The
project will also focus on identifying the
gaps in the recruitment and selection
processes in the organization under
study and conclude with suitable
recommendations.
Fig: 1.1
Project Aims & Objectives
https://ashbournecollegebusinessstudies.files.wordpress.com/2
010/08/goals-dart-bullseye.jpg

1.2 IBM Pakistan - Organization under Study
For the purpose of the project, IBM Pakistan has been selected as the organization
under study.
IBM established its operation in Pakistan in 1952, and has continued since then to
create a long-standing business along with a technological and social heritage in
Pakistan. The country headquarters are based in Karachi with branch operations in
Lahore and Islamabad and remote maintenance services in over 30 cities. IBM along
with over 20 business partners provides product distribution, sales and technical
support, solution offerings, technology and business consultancy services.
2.0 Literature Review
2.1 Recruitment
Recruitment is the process of finding
and engaging the people the
organization needs. Through
recruitment, a pool of eligible and
interested candidates is created for
selection of most suitable candidates.
Recruitment represents the first contact
that a company makes with potential
employees.
It is through recruitment that many individuals will come to know a company, and
eventually decide whether they wish to work for it. Hence it is an employer branding
tool as well. A well-planned and well-managed recruiting effort will result in high
quality applicants, whereas, a haphazard and piecemeal efforts will result in
mediocre ones.
2.2 Need for Recruitment
The need for recruitment may be due to the following reasons / situation:
 Vacancies due to promotions, transfer, retirement, termination, permanent
disability, death and labor turnover.
Fig: 2.1
Recruitment
https://ashbournecollegebusinessstudies.files.wordpress.com/2
010/08/goals-dart-bullseye.jpg

 Creation of new vacancies due to the growth, expansion and diversification of
business activities of an enterprise. In addition, new vacancies are possible
due to job specification.
2.3 Purpose and Importance of Recruitment
 Determine the present and future requirements of the organization on
conjunction with its human resource planning and job analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of the selection process by reducing the
number of visibly under qualified or overqualified job applicants.
 Help reduce the probability that job applicants, once recruited and selected,
will leave the organization only after a short period of time.
 Meet the organization’s legal and social obligations regarding the composition
of its work force.
 Begin identifying and preparing potential job applicants who will be
appropriate candidates.
 Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.
 Recruitment is a positive function in which publicity is given to the jobs
available in the organization and interested candidates are encouraged to
submit applications for the purpose of selection.
2.4 A Retention Strategy
The last one decade has witnessed a strategic shift in the recruitment philosophy
exercised by competitive organizations. The organizations focus on a ‘Retention
Strategy’ to ensure long-term employment, reduce dependence on external labor
market and to improve the company’s image.
However, retention of high performers is linked to providing challenge and
achievement opportunities (e.g. assignments), mentors, equal opportunity,
continuous feedbacks, career development, induction and onboarding, reward and
recognition, improved work life balance, etc. A carefully devised retention strategy
also encourages the development of social ties within the company.
In the words of Cappelli (2000), ‘loyalty to companies may be disappearing but loyalty
to colleagues is not.’

2.5 Active Recruitment
As part of changing global trends, today when recruitment is necessitated,
organizations adopt ‘Active Recruitment’ as against the earlier practices of ‘Passive
Recruitment’. In active recruitment the organizations proactively reach out the
potential candidates before the advertisement through many sources, such as
internet job postings, social media including LinkedIn, Facebook, Twitter, bayt,
monster, rozee, company websites and college / on campus recruiting events, etc.
2.6 The Recruiting Yield Pyramid
It’s hard to overemphasize the importance of effective recruiting. Consider if only
two candidates apply for two openings, the company may have little choice but to
hire them. But if 10 or 20 applicants appear, the company uses techniques like
interviews and tests to screen out all but the best. It is important to understand that
even high unemployment doesn’t necessarily mean that it is easy to find good
candidates.
Filling a relative handful of
positions might require
recruiting dozens or hundreds
of candidates. Employers
therefore use a staffing or
recruiting yield pyramid as
shown in Figure 2.6 to gauge
the dimensions of the staffing
issues it needs to address. In
Figure 2.6, the company
knows it needs 50 new entry-
level employees next year.
From experience, the firm
also knows the following:
 The ratio of offers made to actual new hires is 2 to 1.
 The ratio of candidates interviewed to offers made is 3 to 2.
 The ratio of candidates invited for interviews to candidates interviewed is
about4 to 3.
Fig: 2.6
Recruitment Yield Pyramid
P 145-Human Resource Management, Gary Dessler, 13th
Edition, Prentice Hall

 Finally, the firm knows that of six leads that come in from all its
recruitingsources, it typically invites only one applicant for an interview a 6to1
ratio.
Given these ratios, the firm knows it must generate about 1,200 leads to be able to
invite 200 viable candidates to its offices for interviews. The firm will then interview
about 150 of those invited, and from these it will make 100 offers, and so on.
2.7 The Recruiting Process
The recruitment process can broadly be divided into three interrelated stages:
 Recruitment planning
 Strategy development
 Communication
2.7.1 The Recruiting Planning
The first stage in the recruitment process is planning. Recruitment planning process
should be aligned with strategic planning process. Planning involves the translation
of likely job vacancies and information about the nature of these jobs into set of
objectives or targets that specify the (1) Numbers and (2) Types of applicants to be
contacted.
Numbers of Contact: Organization, nearly always, plan to attract more applicants
than they will hire. Some of those contacted will be uninterested, unqualified or
both. Each time a recruitment program is contemplated; one task is to estimate the
number of applicants necessary to fill all vacancies with the qualified people.
Types of Contacts: It is basically concerned with the types of people to be informed
about job openings. The type of people depends on the tasks and responsibilities
involved and the qualifications and experience expected. These details are available
through job description and job specification.
2.7.2 Strategy Development
When it is estimated that what type and number of candidates are required to be
recruited, the organizations then concentrate on the following key questions:

 Whether to make or buy employees
Organization must decide whether to hire unskilled employees and invest on
training and development programs, or hire skilled and professionals from
external labour markets. Essentially, this is the ‘make’ or ‘buy’ decision.
Organizations, which hire skilled and professionals shall have to pay more for
these employees.
 Geographical distribution of labour markets comprising job seekers
In order to reduce the costs, organizations look in to labour markets most
likely to offer the required job seekers. As highlighted in Figure 2.7.2, Armin
Trost, Professor at HFU Furtwangen University, Schwarzwald, Germany argues
that the HR planning process must identify the key and bottle neck functions
with respect to strategic relevance of the job and external market talent
availability.
Figure: 2.7.2
Key and Bottleneck Functions
Troast. A (2012)Talent Relationship Management

2.7.3 Communication
Once a recruitment plan and strategy are worked out, the search process can be
initiated by carefully choosing the communication channels and the information that
should be communicated. The communication channels that can be utilized include:
 Advertising (print media, company website, social media tools like LinkedIn,
Facebook, Twitter etc)
Figure: 2.7.3 a
Recruitment Communication through Social Media
http://omoii.com/wp/wp-content/uploads/2012/10/social-media-recruitment.png
 Employment agencies
 Employee referrals
 Previous applicants
 Educational institutions
The information that should be
communicated must be:
 Based on JD & JS
 Sufficient
 Fixated with the image of
the company
Fig: 2.7.3 b
Recruitment Channels
http://www.managementguru.net/wp-
content/uploads/2014/03/recruitment_channels_in_vietnam.png

2.8 Employer Branding and Recruitment Process
Employer branding is a comprehensive recruiting strategy that positions the
company in an attractive way and makes it top of mind for potential candidates. It is
also a focused corporate message that speaks to current and potential employees
that conveys the company’s culture and identity in a truthful and compelling manner.
Therefore, contemporary recruitment considers employer branding as a long-term
vision that encompasses the values, systems, policies and behaviours which define
what employers expect of their employees and what employees expect of their
employer.
Figure: 2.8
Employer Branding by Hindustan Unilever& Starbucks, USA
http://www.hul.co.in/, http://www.starbucks.com/

2.9 Selection
Selection is the process of differentiating between applicants in order to identify and
hire those with a greater likelihood of success in a job. For long term employability,
the selection process must be objective and effective.
The main aim of employee selection is to achieve an idealistic person-job fit scenario.
Person-job fit refers to matching:
Those Knowledge, Skills, Abilities and competencies which are central to performing
the job (as determined by job analysis)
With
The prospective employee’s Knowledge, Skills, Abilities and competencies.
2.9.1 The Selection Perspective
It should be remembered that a candidate might be right for a job, but wrong for the
organization. For example, a highly experienced airline pilot might do well at
American Airlines but perhaps not as well at Southwest Airline, where the
organizational values require that all employees help get the plane turned around
fast, even if that means helping with baggage handling. Thus, while person-job fit is
usually the main consideration in selection, employers should care about person-
organization fit as well.
The best perspective on selection comes from two traditional HR truisms that clearly
identify the importance of effective selection:
“Good training will not make up for bad selection.”
“If you don’t hire the right one, your competitor will.”
2.10 Reliability and Validity
For an objective and effective selection process, the selection tools must be reliable
as well as valid.
2.10.1 Reliability
The first requirement of the selection tool is reliability which refers to consistency of
measurement. A reliable test is one that yields consistent scores when a person takes
two alternate forms of the test or when he or she takes the same test on two or
more different occasions.

 Test - Retest Reliability relates with consistency of tests results conducted at
various times. For example, if the same person took a test in December and
scored 100, but upon taking it in March scored significantly higher, the test
would not be highly reliable.
 Inter- Rater Reliability relates to consistency of rating given by different
interviewers giving similar ratings when observing the same performance.
2.10.2 Validity
Validity is accuracy in predicting or drawing inferences about criteria. Validity occurs
to the extent that a predictor actually predicts what it is supposed to predict.
Reliability can be without validity. Reliability, while indispensable, only tells you that
the test is measuring something consistently. It does not prove that you are
measuring what you intend to measure. A miss-manufactured 33-inch yardstick will
consistently tell you that 33-inch boards are 33 inches long. Unfortunately, if what
you’re looking for is a board that is 1 yard long, then your 33-inch yardstick, though
reliable, is misleading you by 3 inches.
 Construct Validity is said to occur when it is demonstrated that a selection
procedure measures a construct (an abstract idea such as morale or honesty)
and that the construct is important for successful job performance. In other
words it is a linkage between what the test measures and underlying
construct.
 Criterion Validity involves demonstrating statistically a relationship between
scores on a selection procedure and job performance of a sample of workers.
For example, it means demonstrating that those who do well on the test also
do well on the job, and that those who do poorly on the test do poorly on
the job. The test has validity to the extent that the people with higher test
scores perform better on the job. In psychological measurement, a predictor
is the measurement (in this case, the test score) that you are trying to relate
to a criterion, such as performance on the job.
 Content Validity is a demonstration that the content of a selection
procedure is representative of important aspects of performance on the job.
For example, employers may demonstrate the content validity of a test by
showing that the test constitutes a fair sample of the job’s content. The basic
procedure here is to identify job tasks that are critical to performance, and
then randomly select a sample of those tasks to test.
2.11 Criteria & Predictors Development

At the heart of an effective selection system is knowledge of what constitutes
appropriate job performance and what characteristics in employees are associated
with that performance. However, determining those characteristics is a complicated
task. Once the definition of performance is known, the employee specifications
required to achieve that success can be determined.
 Selection Criterion A selection criterion is a characteristic that a person must
have to do the job successfully. One example is the criterion ‘Appropriate
Employee Permanence’, which considers that a person must stay in a job long
enough for the employer at least to break even on the training and hiring
expenses incurred to hire the employee.
Figure xx shows that ability, motivation, intelligence, conscientiousness,
appropriate risk, and permanence might be good selection criteria for many
jobs.
Figure 2.11: Job Performance, Selection Criteria and Predictors
P 281 -Human Resource Management, Gary Dessler, 9th Edition, Prentice Hall
 Predictor is measurable indicator of selection criteria. To predict whether a
selection criterion (such as “motivation” or “ability”) is present, employers
try to identify several measurable predictors.
For example, in previous Figure xx good predictors of the criterion ‘Appropriate
Employee Permanence’ might be individual interests, salary requirements, and
tenure on previous jobs.
2.12 The Selection Process
The selection process has an important public-relations dimension. Discriminatory
hiring practices, impolite interviewers, unnecessarily long waits, inappropriate

testing procedures, and lack of follow-up feedbacks can produce unfavorable
impressions of an employer, damaging the employer image and brand. Providing
courteous, professional treatment to all candidates during the selection process is
important because for most applicants a job contact of any kind is an extremely
personal and significant event. The selection process comprises of the following
activities:
2.12.1 Initial Screening
Essentially initial screening is in most large organizations, is done by someone in the
employment office or in the HR department. In most situations, the initial screening
comprises the following steps:
 Biographical information
 Resumes
 Application forms
 Reference checks
 Screening / preliminary interviews
Figure 2.12.1: Steps in initial Screening
http://www.usaswimming.org/_Rainbow/images/_SafeSport/BackgroundScreenGraphic.png
2.12.2 Tests
Job seekers who pass the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job and the
company. Generally, tests are used to determine the applicant’s ability, aptitude and
personality.
 Intelligence Tests Intelligence (IQ) tests are tests of general intellectual
abilities. They measure not a single trait but rather a range of abilities,
including memory, vocabulary, verbal, numerical, problem solving abilities,
analyzing complex situations. If there is only one selection tool available, it

has to be the Intelligence Test. It is because the traits tested in the IQ tests
are more or less required in every job.
 Aptitude Test Aptitude tests measure whether an individuals has the
capacity or latent ability to learn a given job if given adequate training. The
use of aptitude test is advisable when an applicant has had little or no
experience along the line of the job opening. Aptitudes tests help determine
a person’s potential to learn in a given area. An example of such test is the
General Management Aptitude Tests (GMAT), which many business students
take prior to gaining admission to a graduate business school programs.
 Personality Tests Personality is a unique blend of individual characteristics
that affect interaction with the environment and help define a person.
Carefully chosen personality tests that logically connect to work
requirements can help predict the interpersonal aspects of job success.
The most widely accepted approach to underlying personality traits is often
referred to as the “Big Five” personality traits. The Big Five can be considered
generally useful predictors of training success and job performance. The Big
Five are:
 Openness to Experience This describes people who are flexible in
thought and open to new ideas, broad minded, curious, and original.
 Conscientiousness This is the extent to which a person is achievement-
oriented, careful, hardworking, organized, and responsible.
 Extroversion Sociable, gregarious, talkative people are considered
extroverted.
 Agreeableness People who are cooperative, good natured, softhearted,
tolerant, and trusting score high on the agreeable dimension.
 Neuroticism This is the extent to which a person does not suffer from
neurosis, depression, anger, worry, and insecurity.
 Graphology Test Graphology is a type of test in which an analysis is made of
an individual’s handwriting. Such characteristics as how people ‘dot an I’ or
‘cross a t’, whether they write with a left or right slant, and the size and
boldness of the letters they form supposedly tell graphologists about the
individuals’ personalities and their suitability for employment. Its value as a
personality predictor is very questionable, but it is popular in France, Israel,
and several other countries.

2.12.3 Interviews
Despite the advent of modern selection tools, interview largely remains preferred
method for selecting the employees. It is because the organizations are interested to
physically judge the human element of the candidates, their appearance and verify
the facts to look for any cheats. Different types of interviews include:
 Situational Interviews The situational interview is a structured interview that
is composed of past or future hypothetical scenarios about how applicants
might handle specific job situations. They are usually designed to check the
candidate’s ability towards problem diagnostics and problem solution.
Interview questions are based on job analysis and checked by experts in the
job.
 Stress InterviewThe stress interview is a special type of interview designed to
create anxiety and put pressure on the applicant to see how the person
responds. In a stress interview, the interviewer assumes an extremely
aggressive and insulting posture. Those who use this approach often justify
its use with individual who will encounter high degrees of stress on the job,
such as a consumercomplaintclerk in a department store or an air traffic
controller.
Figure 2.12.3: Stress interview at Heineken, USA
https://www.youtube.com/watch?v=zVu_HxJ4vxM
The stress interview is a high-risk approach for an employer. The typical
applicant is already somewhat anxious in any interview, and the stress
interview can easily generate a very poor image of the interviewer and the
employer. Consequently, an applicant that the organization wishes to hire
might turn down the job offer. Even so, many interviewers deliberately put
applicants under stress.
 Behavioral Interview When responding to a behavioral description
interview, applicants are required to give specific examples of how they have
performed a certain procedure or handled a problem in the past.

 Comprehensive Interview Usually conducted by a panel of top level
management. Its main purpose is to check if the candidate has an overall fit
with the cultural values and business of the organization.
2.12.4 Assessment Centre
An assessment center is not necessarily a place; it is composed of a series of
evaluative exercises and tests used for selection and development. It is usually a two-
three day exercise conducted for management positions, training & promotions.
The assessment uses multiple exercises and multiple raters. In one assessment
center, candidates go through a comprehensive interview, pencil-and-paper test,
individualand group simulations, and work exercises. The candidates’ performances
are then evaluated by a panel of trained raters. It is crucial to any assessment center
that the tests and exercises reflect the job content and types of problems faced on
the jobs for which individuals are being screened.
Figure 2.12.4: Group simulations during Assessment Centre at BAT PLC, London
http://www.bat.com/
Assessment centers have high correlation with career advancement (.39) but its
correlation with actual performance is a bit lower. Assessment centers generally
results in high time, inter-rater reliability, test- retest reliability and content validity.
2.12.5 Induction
Carefully selecting employees doesn’t guarantee they’ll perform effectively. Even
high potential employees can’t do their jobs if they don’t know what to do or how to
do it. Uncertainty has a high correlation with performance. Making sure that
employees do know what to do and how to do it is the purpose of induction
program.
Initial experience of the organization shapes up the attitude of the employee which
determines the level of their psychological contract. A good induction certainty sets
the launch pad for long term employer-employee relationship.

The human resources department usually designs the company’s orientation and
training programs, but the rubber hits the road with the supervisor. He or she does
most of the day-to-day orienting and training. Every manager therefore needs to
know how to orient and train employees. A good induction program avoids the
Reality Shock Syndrome, therefore the role of realistic job purviews and first
supervisor cannot be over emphasized.

PART II
RECRUITMENT AND SELECTION AT IBM PAKISTAN

3.0 Recruitment and Selection at IBM Pakistan
The men and women around the world employed by International Business Machines
(IBM) have always been its paramount priority. For example, IBM’s founder, Thomas
J. Watson, told employees in October 1926: “They say a man is known for the
company he keeps. We say in our business that a company is known by the men it
keeps.”
The value placed on IBM employees was codified in one of IBM’s three fundamental
principles. In 1969, IBM Chairman Thomas J. Watson, Jr., wrote to his management
team: “Our basic belief is respect for the individual, for his rights and dignity. It
follows from this principle that IBM should: help each employee to develop his
potential and make the best use of his abilities;pay and promote on merit; and
maintain two-way communications between manager and employee, with an
opportunity for a fair hearing and equitable settlement of disagreements.”
3.1 IBM Recruiting
IBM is committed to a diversified workforce and actively seeks qualified candidates
who reflect themany markets IBM serves, including women, minorities and people
with disabilities.
Each year, IBM recruiters attend more than 40 diversity-focused conferences and
career fairs to recruit from these constituencies.
IBM’s innovative "Why work?" marketing campaign, which began in the spring of
1999, is designed to reach the best and brightest campus and professional talent
through a compelling dialogue about IBM's strengths: its people, the work, the
rewards, and its global presence.
The recruiting campaign asks a series of provocative questions to get candidates to
better evaluate their goals in seeking an employer.
3.1.1 Co-Ops/Internships
IBM hires approximately 3,500 co-op students and interns each year. Of these
students, approximately 80 percent are from technical disciplines. Additional areas of
focus include students with business, finance, human resources or Masters of
Business Administration degrees. IBM’s goal is to obtain 40 percent of its university
hires from within the pool of candidates who work as interns and co-op students.

3.1.2 Women at IBM
IBM has a long history of commitment to the advancement of women in the
workplace, hiring its first professional women in 1935 and its first woman vice
president, Ruth Leach, in 1943.
In 1995, the company formed its Global Women Leaders’ Task Force, which later
initiated employeework/life surveys in the Americas, Europe and Asia Pacific; a series
of Global Women’s Leadership Conferences; the creation of Women of Color and
Women in Technology sub-committees, each of which has conducted global
conferences; and the formation of local women’s networks around the world.
In the United States, the number of women in executive positions totaled
approximately 21 percent at the end of 1999, growing from a total of 351 women
executives in 1998 to 445 at the end of 1999.
Globally, women comprise almost 18 percent of the IBM worldwide executive
population. The number of women executives around the world increased from a
total of 399 in 1998 to 508 at the end of 1999.
In 2000, in recognition of its long-standing commitment to the advancement of
women, IBM was one of three companies honored by Catalyst, the New York City-
based women’s advocacy organization.
In 2000, IBM expanded its Technology Camps for Girls summer program to a dozen
IBM and university locations in the United States and Puerto Rico. The program helps
middle school girls gain a better appreciation of the outstanding career opportunities
offered by technology and encouragesthem to pursue technical degrees.
3.2 Recruitment at IBMPakistan
IBM announces the job's availability to the market
and attracts qualified candidates to apply. The
market from which the firm attempts to draw job
applicants can be internal, external, or a
combination of the two. In other words, the firm
may seek applicants from inside the organization,
outside the organization, or both.IBM goes out
&reaches the people before the advertisement. It
actively seeks recruitment by frequently utilizing
the internet job postings on company’s website as
well as on social media such as LinkedIn,
Facebook, Twitter, monster.pk, rozee.pk etc.
Fig: 3.2
IBM Recruitment
http://www-
05.ibm.com/employment/pk/experienced-
jobs/index.shtml

IBM also conducts university recruitment for Graduates through a ‘Battle of Minds’
program launched at top rated universities of Pakistan. Recruitment advertisements
are outsourced to specialist agencies for designing.
3.2.1 Company Image
IBM understands that for active recruitment, company image plays a central pivotal
role. It therefore advocates on employee value proposition through Employer
Branding as well as Employer of Choice techniques.
Figure 3.2.1 (a) & 3.2.1 (b) shows efforts of IBM to perpetuate taglines such as feel
proud to work here, build the career you want, deliver innovation that matters, work
alongside great minds, diversity of thought, a smarter planet for everyone etc.
Fig 3.3 a
Figure: 3.2.1 (a) 3.2.1 (b)
Employer Branding by IBM Pakistan
http://www-05.ibm.com/employment/pk/,http://www-05.ibm.com/employment/pk/about-ibm/index.shtml

3.2.2 Educational Student Internship
IBM has launched the Educational Students Internship Program(ESI) in Pakistan. This
program will enable students to collaborate with assigned mentors to deliver
planned technical projects which can be used in business situations. The Internship is
one of a kind and has tremendous benefits for students associated with it. The
students would not only learn new technology but also experience real business
issues, get familiar with corporate culture and enhance their communication skills.
This is part of IBM’s ongoing efforts to build skills in Pakistan’s universities and
prepare students for the job market.
3.2.3 Recruitment Evaluation
IBM carries out recruitment evaluation to find out whether the efforts are cost
effective in terms of time and moneyspent.The general indicators utilized include
quantity and quality of applicants (yield ratio), cost per applicant hired and time
required to fill the openings.
3.2.4 Professional Employer Organizations (PEOS) and Employee Leasing
Employeeleasing is a concept that has grown rapidly in recent years. In employee
leasing process an employer signs an agreement with aleasing company, after which
the existing staff is hired by the leasing firmand leased back to the company. For a
fee, a small business owner or operatorturns his or her staff over to the leasing
company, which then writes the pay checks, pays the taxes, prepares and
implements HR policies, and keeps all the requiredrecords.
For certain simple tasks required to be performed at the premises of the clients like
networking, installation of servers and business machines, etc, IBM has started to
utilize employee leasing from existing smaller firms in the business.
3.2.5 Message from IBM HR
“To apply for the scheme you can have any degree background and you don't need to
have any previous work experience to apply. We look for people who have energy,
creativity and who are passionate about the area they want to apply to as well as
having great team skills and a clear focus on delivering an exceptional service to our
clients.”
The people who are most successful at IBM share a distinct set of characteristics.
IBM has defined these characteristics as the IBM Foundational Competencies. These
skills are essential for being successful at IBM.

Candidates deciding to apply for a placement year with IBM, can utilize these
competencies to demonstrate their abilities while completing the application form
and at interview. The candidates are encouraged to use examples from their
education, work experience, voluntary work, involvement in clubs and societies or
hobbies.
3.2.6 What does IBM look for?
 Adaptability
 Teamwork & Collaboration
 Communication
 Drive to Achieve
 Creative Problem Solving
 Client Focus
 Passion for the business
 Taking Ownership
3.3 Retention Strategy&Employer Branding
IBM being the world's largest technology and consulting company pays great
attention to the retention of its employs. IBM values innovation, trust and personal
responsibility in all employment relationships. Therefore it has established
procedures to retain its employees through a competitive & flexible remuneration
package, policies, effective grievance handling systems, equal opportunity etc.
IBM also understands that there is a limit to the extent to which the people can
bribed to stay in organizations. Hence also respects the decision of employees if they
ultimately decide to leave the organization but conducts exit interviews through
people who have good rapport to analyse the real reasons.
For retention, IBM also concentrates on intrinsic factors such as task significance,
autonomy, meaningful relationships and culture.
3.3.1 Benefits by IBM
IBM compensation and benefits are among the very best in the industry. It includes:
 Basic Salary
 House Rent
 Bonus
 Medical Benefits
 Provident Fund

IBM offers a variety of programs to give employees a valuable total compensation
package. Some programs will apply to every employee, every year, while others are
designed to recognize individuals for very specific accomplishments.
3.3.2 Flexible Benefit Plan -FBP
The Flexible benefit Plan is a significant component of Total Compensation allowing
the employee the flexibility of planning their compensation. This Benefit Plan lets the
employee design their own package which best meets their individual and unique
needs. Flexible Benefits Plan empowers them to make responsible choices in order to
derive maximum value for Compensation.
In this approach employees are presented with the opportunity to make decisions on
the benefits and advice on how to make the necessary claims. The FBP covers
benefits such as:
 Leave Travel Allowance (LTA)
 Conveyance Allowance or Fuel expense and Vehicle maintenance
Reimbursement
3.3.3 Health
IBM provides a range of health benefit options so that employees can design
personalized coverage that meets their personal or family needs. They are eligible for
all health benefit programs beginning with first day of employment example life
insurance, etc
3.3.4 Training at IBM
In IBM, training is considered to be strategic human resource activity because it plays
a major role in determining the effectiveness and efficiency of an organization. A
successful training and development program will achieve the following benefits:
 Improve the quality and quantity of work done.
 Reduce the learning time required for employees to reach acceptable
standards of performance.
 Create more favorable attitudes, loyalty and cooperation.
 Satisfy human resource planning requirements.
 Reduce the number and cost of accidents.
 Help employees in their personal development and advancement.
 Help organizations to respond to dynamic market conditions and changing
consumer demands.

At IBM different jobs require different capabilities. These capabilities can be
considered fewer than four categories:
 Technical
 Managerial
 Behavioral
 Conceptual
3.3.5 Career at IBM
The employees of IBM who have access to On Demand Workplace, have access to a
variety of websites and tools to effectively manage career and build expertise, which
includes:
 E-Learning - IBM's central warehouse of all on-line courses that are offered by
IBM's professional communities. Includes universal access to thousands of
internal e-learning modules.
 Global Campus - IBM's central warehouse of all on-line and classroom courses
that are offered by IBM's professional communities. Includes universal access
to thousands of internal e-learning modules.
 Career sites and tools - IBM's career sites and tools enable employees to
identify opportunities, construct a plan of action for building skills and mark
their progress as they advance along their career path.
 Academic Learning Assistance Program - Known as ALAP, this program
provides assistance to obtain additional external education that employees
need to stay current with IBM's business strategies and goals.
3.3.6 Corporate Citizenship and Corporate Affairs
IBM HR strongly believes that companies, like individuals, have a responsibility to put
something back into the community in which they live and work. An important focus
of our efforts is in the education sector. IBM has a long history of supporting projects
which are designed to strengthen education levels and quality throughout the world.
3.3.7 IBM Pakistan CSR Efforts to Build Employer Brand Image
IBM Pakistan presented 26 Young Explorer computers to four non-profit
organizations in November 2013 including Development in Literacy (DIL), Mountain
and Glacier Protection Organization (MGPO), Kaghan Memorial Trust (KMT), and
PAF’s Special School of Education.

IBM Responds To Flood Disaster in PakistanThe summer of 2010 produced
Pakistan’s worst flooding in 80 years. In a televised address on August 14, Prime
Minister Yusuf Raza Gilani said that 20 million people, about one-ninth of the
population, had been displaced by the disaster.
Figure: 3.3.7
IBM Brand Image - Corporate Social Responsibility
http://www.ibm.com/pk/en/
3.4 Selection Process at IBM
Following are the four steps followed by IBM in order to select candidate.
Step 1- Submit your application
Step 2- Online Test
Step 3- First Round Assessment Center
Step 4- Second Round Assessment Center
Figure: 3.4
Selection Process at IBM Pakistan
http://www-05.ibm.com/employment/pk/?lnk=ftpl

Step 1 - Submit Your Application
In order to apply to IBM, you will need to apply online through this website.
Step 2 - Online Test
If your application is successful through the screening phase then we will invite you
to take an online aptitude test - the IBM IPAT test. This test has been developed by
IBM to test logical reasoning and the ability to process information quickly. All the
instructions are included in the email that will be sent to you inviting you to take the
test.
Step 3 - First Round Assessment Center
The test is divided into 2 sections and you can take these either both in one sitting or
two sittings and you will have 5 days to take it before your password expires. The
test can be adjusted for anyone that needs a reasonable adjustment and you will be
asked to self-select whether you need this when you log onto the test for the first
time.
Step 4 - Second Round Assessment Center
If you achieve the minimum score required on the online aptitude test then we will
invite you to a first round assessment center. You will be given a presentation about
the opportunities available and give you the chance to ask more questions. You will
get the opportunity to meet some of our current placement students. You can expect
to take part in the following activities:
Group Activity - You will take part in 2 group activities - one logical problem solving
exercise and one discussion based exercise. We will be looking for you to work well
as a team and demonstrate the IBM Foundational Competencies during these
exercises.
Confirmatory IPAT test - You will take a short confirmatory test for the online test
you have already completed. This will follow the same format as the online test.
If you have achieved the minimum score required from your first round assessment
center, you will be invited to come to a final second round assessment center.
You can expect to take part in the following activities:
Foundation Interview/Presentation - You will be required to create a 10 minute
presentation to present to a Professional Development Manager. The three topics
will be given to you for you to prepare before the day. This is to ascertain whether

you have the correct skills to work in IBM. There will also be 5 minutes at the end for
questions.
3.4.1 Business Interview
You will have a business interview by one of our hiring managers to ascertain
whether you have the skills we are looking for at IBM for their current role they are
looking to fill. This interview will assess your suitability for a specific role in that
business area and also assess you further on the IBM Foundational Competencies.
3.5 First Day Orientation at IBM
"Your IBM" is a new employee orientation class designed to help the employees hit
the ground running as they begin their career at IBM. This class gives them the road
map to help understand the company's core values, rich heritage of technology
leadership, Innovation, and the important role employees are being asked to play as
the company continues to drive growth and innovation. This program uses a blended
learning model that has the following components:
 E-learning that is accessible to you right away.
 2 or 3 day Classroom orientation on or as close to start date as possible.
 E-learning to be completed within your first four months at IBM.
In addition to the IBM learning program, new employees will develop the IBM
Foundational Competencies as part of their career development. Values of IBM
explain that every IBMer, no matter his or her job, should be focused on ensuring the
success of its clients, on improving IBM and the wider world, making both better
than found, and on extending talent for building relationships based on trust and
integrity. Through the IBM Foundational Competencies, the characteristics and
behaviors necessary for this values-based work culture are developed.
These competencies set a common standard of excellence across the organization
and form the basis of people development within IBM. They will also help to focus
the learning time on developing the characteristics identified and validated as being
key to achieving success.
All of IBM's learning initiatives enable employees to access information when they
need it. Learn what you want, when you want, where you want...this is the strategy
of On Demand learning. Every component has been designed to help employees
improve: in knowledge, in people connections, and in career direction.

4.0 Conclusion
The human element of organization is the most crucial asset of an organization.
Taking a closer perspective, it is the very quality of this asset that sets an
organization apart from the others, the very element that brings the organization’s
vision into fruition.
Thus, one can grasp the strategic implications that the manpower of an organization
has in shaping the fortunes of an organization. This is where the complementary
roles of Recruitment and Selection come in. The role of these aspects in the
contemporary organization like IBM Pakistan is a subject on which the experts have
pondered, deliberated and studied, considering the vital role that they obviously
play.
The essence of recruitment can be summed up as ‘the philosophy of attracting as
many applicants as possible for given jobs’. The face value of this definition is what
guided recruitment activities in the past. , IBM Pakistan emphasizes on aligningits
objectives with that of the individual’s. By making this a priority, IBM Pakistan
safeguards its interests and standing. After all, a satisfied workforce is a stable
workforce which also ensures that IBM Pakistan has credible and reliable
performance. In a bid to underscore this subtle point, the project examined the
various processes and nuances one of the most critical activities of an organization.
The end result of the recruitment process is essentially a pool of applicants. Next to
recruitment, the logical step in the HR process is the selection of qualified and
competent people. As such, this process concentrates on differentiating between
applicants in order to identify and hirethose individuals whose abilities are consistent
with IBM Pakistan’s requirements.

5.0 Recommendations
After analyzing the Recruitment and Selection process of IBM Pakistan and
comparing it with the processes mentioned in the literature review of the project
there are some gaps in the R&Sprocess of IBM Pakistan.
Following are the recommendations for IBM Pakistan to make their Recruitment &
Selection processes more effective:
Recruitment
IBM Pakistan should focus on their advertising for the jobs that are posted on their
portals or social media portals. In some cases a resource is hired for a specific
position but still the job post is open on the portals and applicants still apply.
IBM Pakistan has to improve the process of retention strategy in terms of the exit
interviews. The outgoing resources are not honest about the reason for leaving the
organization and think of the exit interviews only as an unimportant process while
leaving the organization.
IBM Pakistan does not follow the employee referral program; hence the employees
do not take interest in helping the HR for hiring of the posts on the Job portal. This in
some cases causes a vacant post and HR is unable to recruit a suitable candidate for
the post.
Selection
IBM Pakistan loses a lot of potential candidates due the delay feedback after the
interviews are conducted. Due to this candidates if get another offer they do not
wait for IBM’s response. Thus IBM should keep the selected candidates to be
informed in every step of the selection. The selected candidates should be informed
about the whole hiring procedure and the duration of it too.

References
Wayne F. Cascio. ‘Managing Human Resources’, Fifth Edition. McGraw-Hill
Gary Dessler,‘Human Resource Management’, Ninth Edition, Prentice Hall
Lecture Slides
Web General Links
http://www-03.ibm.com/ibm/history/documents/pdf/hr.pdf
http://futureobservatory.dyndns.org/9010.htm
http://futureobservatory.dyndns.org/2013.htm
http://www.ibm.com/pk/en/
Web IBM Global Policies
http://www.ibm.com/ibm/responsibility/letter.shtml
http://www-935.ibm.com/services/us/en/it-services/human-resources-learning-and-
recruiting-outsourcing.html
http://www-01.ibm.com/software/analytics/cognos/human-resource-performance-
management.html
Web IBM Pakistan
http://www-05.ibm.com/pk/ibm/corpcomm.html?lnk=ftai

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