Organization Theory Essay: Hiring The Right Person For a Job And Retaining Them
Organization Theory Essay: Hiring the Right Person For a Job And Retaining Them
Summary Organisation theory, including pagenumbers and example questions
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Vrije Universiteit Amsterdam (VU)
International Business Administration
Organization Theory
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ORGANIZA
VRIJE UNIV
HIRING THE RIGHT
PERSON FOR A JOB
AND RETAINING
THEM
Damini Bissumbhar – 2739680
Luc Glasbeek 23-
10-2021
, Hiring the Right Person for a Job and Retaining Them
When selecting possible employees, employers need to consider numerous elements to ensure
the right person for a job is employed (Clegg, Kornberger, Pitsis & Mount, 2019). Those
elements include (a) the nature of the job, (b) the required skills, capabilities, and
qualifications of the future employee, and (c) the skills, capabilities, and qualifications of the
people in the job market (Clegg et al., 2019). Although, keeping those factors in consideration
does not prevent employers from making mistakes in hiring. According to a survey conducted
by CareerBuilder (2017), 74 percent of employers have admitted that they hired the wrong
individual for a position. The employers that took the survey listed various reasons for making
a bad hire, such as thinking that the candidate could quickly learn the needed skills, rushing to
hire someone for the job, or not working close enough with the HR department. In some
cases, there may not be an HR department to work with.
Making bad hires could be a genuine mistake. However, this is not always the case.
According to an article published on the Forbes website by Sally Percy (2018), many
organizations still cling to the same old mindsets when it concerns hiring people. Percy listed
three reasons as to why this is the case. First, the old-fashioned organizations seem to
prioritize the skills somebody possesses rather than their cultural fit, even though 87 percent
of leaders found that successful hires happened when evaluating cultural fit. Second, those
organizations undervalue ‘soft skills’, which consist of skills such as communication and
thinking outside of the box. The organizations believe that it is safer to hire someone with
whom they can pursue strategies to grow and transform, which could lead to them possibly
missing out on promising talent. Third, organizations that hire people with potential and train
them to develop their skills could lead to them having employees who make a positive
difference, whereas organizations with old mindsets exclusively hire people based on skills
they already possess and thus miss out on hidden potential.
Problem statement
Whether it was an honest mistake, or an organization hired someone in line with
outdated mindsets, hiring the wrong people can be rather costly. Companies lose on average
$14.900 per bad hire and $30.000 per good hire that they lose. Apart from bad hires being
expensive, when a bad hire is made, productivity and efficiency decrease, leading to possible
team dissatisfaction (CareerBuilder, 2017). In summary, many implications take place when
hiring the wrong person.
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