ENRON: A Not So Happy Ending to a Good Recruiting Plan

Please answer all the questions for the two case studies below.  Answers should be thorough and complete for each question.  Please write your responses in a word document for submission and use the APA format as a guideline. Double-space and use a 12 point font. The combined responses should be at least 200 words each in length.  Use the following information to support you in completing this assignment correctly.

Directions:

Please answer all the questions for the two case studies below.  Answers should be thorough and complete for each question.  Please write your responses in a word document for submission and use the APA format as a guideline. Double space and use a 12 point font. The combined responses should be at least 200 words in length.  Use the following information to support you in completing this assignment correctly.

· All questions answered and addressed

· Answers indicate that symptoms were recognized

· Actual causes of the problem were uncovered

· Answers indicate that you identified major goals of the organizations, units, and/or individuals in the case

· Answers indicate that longer-term performance problems and those requiring immediate attention have been recognized and considered

· Identified appropriate alternative actions

Case Study 1

ENRON: A Not So Happy Ending to a Good Recruiting Plan

Enron Corporation was launched in 1985, with the merger of Houston Natural Gas and InterNorth, a Nebraska company. In 1990, Enron—which was just a natural gas transportation company at the time—started a new division to trade natural gas. The company went from being a “stodgy” gas pipeline company to being a “world-class” company overnight. Enron soon became a $55 billion empire, trading gas, electricity, minerals, water, paper, and broadband capacity.

A critical part of Enron’s success was the company’s employee value proposition (EVP). The EVP focused on Enron as a dealmaker and was designed to attract the top talent the company needed to continue to move it forward. The EVP pro-vided employees with the opportunity to do something “big” and to change how business was done in other industries. Jobs were restructured to give employees a lot of elbow room and headroom. Traditional gas pipeline employees were not the employees needed for this new, never-before-tried venture.

Internal job movements at Enron were an important part of the EVP. Managers were strongly encouraged to allow employees to move within the company. The goal was to not hold anyone back. When the Global Broadband unit was launched, 100 top performers from around the company were brought together in Houston. By the end of the day, 50 had been recruited for the new project. Overall, the recruiting strategy focusing on internal recruitment paid off. The business continued to grow and attract entrepreneurial employees.

The company that thought it had no way to go but up came crashing down in 2001 when it was charged with illegal activities. By 2004, Enron’s corporate officers faced numerous charges of wrongdoing, and the company was a shell of its former self. Managers were charged with manufacturing profits, hiding debt, and bullying Wall Street to buy into its questionable accounting and investment practices. An extensive amount of downsizing had occurred, and many employees had lost all of their retirement savings after Enron’s stock collapsed. Faced with bankruptcy and a sullied reputation, the company struggled to continue but finally made the decision to cease to exist once all litigation concludes.

At one time, Enron’s recruiting efforts were described as a model for other employers. Enron portrayed itself as an exciting company with lots of growth opportunity—a firm in which employees experienced a great deal of autonomy and responsibility.

Questions

1. Enron did a lot of things right from a recruiting standpoint. Discuss its recruiting strategy and why it worked.

2. Do you think that Enron’s overall recruitment EVP and strategy played any role in the problems that resulted at Enron? If so, what and how?

3. Discuss why it’s important to create a recruiting message that’s attractive but that doesn’t “oversell” the company.

4. Assume that in a few years Enron decides to reconstitute itself in some form. Develop a recruiting strategy that the company could use to attract employees.

Case Study 2

Case Study 2: Virtual Selection at National City Corporation

National City Corporation, a multistate banking firm with headquarters in Cleveland, Ohio, employs around 32,000 people. The company has been named one of “The Top 100 Employers” by The Black Collegian magazine.  National City, founded in 1845, is one of the nation’s largest financial holding companies.

National City uses a computerized simulation of specific job-related tasks known as “Virtual Job Tryout” to select candidates for jobs.  In effect, job candidates get to audition for the job they want.  The company believes that this type of assessment does more than help the company select the right people. The process also gives National City Corporation a distinctive recruiting experience that creates a unique impression on applicants and helps build the employer brand of the company.             

National City worked with a consulting firm to develop several virtual simulations.  The simulations have audio and video interactivity and are quite appealing to younger job applicants such as Gen Y’ers.  Call center applicants, for instance, are given scenarios requiring them to solve customer service problems. Branch manager applicants have to demonstrate their skills at developing client relationships and making quick personnel decisions. Of course, these online assessments are just part of the overall selection process, but they are the next step in getting hired after completing the application process.

The firm believes that this part of its selection process is an educational tool that helps potential employees learn about the company. According to one of the consultants involved in the development of the simulation, innovative companies are looking for unique experiences such as this one to make their selection process standout.

Questions

1. Discuss the pros and cons of using virtual assessment for employee selection. To answer this question, you may want to do further research on the concept.

2. What concerns would you have about this selection process if you were an applicant?

3. Describe the steps the company would need to take to ensure that the selection process is nondiscriminatory and fair.

4. Do you think all types of employees would respond the same to virtual assessment? Why? Why not?

5. For what types of skills is virtual assessment best suited (e.g., interpersonal, analytical, business, engineering, other)? Explain your response.

6. Are there jobs for which this type of assessment would not be appropriate?