Peoplestreet is recruiting a VP of Business Development; Mark Pitts is the leading applicant. The company serves as a human resource and recruiting service. Their strategic purpose was to develop an effective, popular and updated online hiring search engine for employees called “LiveCard.” This is an example of horizontal related diversification. Their competitive advantage is low cost. They achieve product differentiation by providing updated and almost live information on each candidate. This case concludes that based on personality assessment tests, Mark Pitts may appear “better on paper” than in person. Caglayan must decide whether or not to rely on his own assumption and referral source, or more heavily weight the decision that is determined by these “personality profiles,” which indicate Pitts may not be a fit. He faces a strong dilemma. Peoplestreet is recruiting for a VP of Business Development who can ramp up sales and target big corporations. Human resource departments would use “LiveCard” to attract talent in a more cost-efficient way vs. using headhunters. This service would save companies an average of 90% commission that would have been paid to a head-hunter. Interestingly enough, the individuals who sign up and use this service would not pay a penny; rather the cost would be transferred to the hiring organizations. The first step to an optimal hiring process is to evaluate the “Big Five” which are: conscientiousness, emotional stability, agreeableness, extraversion and openness to experience. Personality does matter, not just to Cagalyan, but studies and research show that hiring the best fit for an organization from a human psychology perspective dramatically increases performance and outcome. However, “selection interviews” may be least accurate. Cagalyan should give a realistic job description as to what will be demanded of Pitts. You also want to attract the best employees. One way of doing this is through a...
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