Human Resource

In recent years, the market globalization is fueling greater competition among corporates. Now large institutional shareholders are becoming a new source of external governance.  In response to these massive shifts in the environment, the firms are spinning off their peripheral businesses, focusing on core areas and outsourcing selected activities.  One of the recent transformations in the corporate world is the skyrocketing number of executive team. According to a survey of some 300 Fortune 500 companies, the number of functional managers reporting directly to the CEO has doubled, from an average of 5 direct reports in 1986 to an average of 10 today.  A power shift is occurring in modern businesses as the functional managers who report directly to the CEO – are taking greater control in business management.  CEOs are eliminating layers in management ranks, broadening their spans of control, and changing pay structures by increasing in...

The way the current salaries are shooting up, the job of hiring professionals has become a lot more challenging to acquire the best talent who can add real value to the organization. On the other side,  mis -hiring causes big damage to the organization.  Based on the recent study, the average cost of  mis -hire can be six times base salary for a sales rep, 15 times base salary for a manager, and as much as 27 times base salary for an executive.  In a study conducted by Dr. Bradford Smart, author of Top grading, the cost of  mis -hiring executives (average compensation: $114,000) was 24 times the person's base compensation For doing the assessment of the right talent, the interview is still the preliminary and powerful process.  To derive better inferences, the hiring professionals are constantly trying to make the interview process more effective.  In this rega...