Control Areas of Concern for IT Companies in India - Example

Management Principles [Name] [Professor Name] [Course] [Date] Introduction The first step in the control process involves determining the areas of control. Managers in an organization usually base a majority of their controls on the mission, goals, and objectives of an organization. In any case, managers must make choices primarily on certain aspects of the business since it is expensive and impracticable to control all aspects of the organizational activities (Lee and Widener 2011). This essay presents analysis of a case study featuring issues revolving around discovery by Indian IT companies that information provided in the employees' Curriculum Vitaes (CVs) was false. Accordingly, the companies have blamed the recruitment agencies that had recruited the employees for helping the candidates to fake the CVs. Based on this case scenario, the types of control that are not being carried out effectively in IT companies in India are discussed, with reference to the control problem areas. Further, the strategies that reflect steps in the control process that can be implemented to reduce variations in accuracies of CVs throughout the Indian IT companies are examined. Lastly, the follow up ‘Control’ checks that could be used to ensure that the strategies brought in for compliance by the recruitment agencies are being followed are also discussed. Control areas of concern for IT companies in India IT companies in India have failed to recruit the right employees who are proficient and apt for tasks. This has been triggered by the problem of recruiting employees with fake CVs. Based on the facts presented in the case study, it is clear that IT companies in India have failed to effectively carry out concurrent, feed-forward and feedback control to manage variations within permissible limits that could have promoted efficiency of the recruited workforce (Pinheiro 2010; Plunkett, Attner Allen 2011). Feed-forward Control Feed-forward control is focused on the control of inputs, such as the inflow of human and financial resources into a company to ensure they meet the standards predetermined for the transformation process (Karlson 2008). In terms of the human resource management, they can regulate the employees ahead of time. In this way, future problems with employee recruitment can be averted. In the case study, Indian IT companies failed to effectively make use of this type of control since falsifications in the work experience, expertise and skills and educational qualifications have been noted (Ismail 2013). Further, orientation and training of the new employees could have served to avert later problems in employee performance, as it could have enabled them to understand their duties before actual assignment. Thoroughly interviewing the candidates should have informed the companies of the faked CVs. In addition, running background checks could have enabled the companies to determine whether the employees were lying (Anderson and Knudsen 2007). Concurrent Controls Concurrent control involves identification and mitigation of problems within a company as they happen. Typically, it begins with the company setting standards against which the performance of all employees will be evaluated. This means that employees’ quality of productivity and proficiency can be checked as they perform their work to ensure they meet the predetermined standards (Anderson and Knudsen 2007). The IT companies in India failed to make use of this type of control to detect the issue of fake CVs early enough, where 50 percent of the 200,000 jobs had been affected by the practice of falsified CVs. Since the main areas of falsification consisted of expertise and work experience, monitoring the employees’ quality of work and performance could have made the managers to detect the anomalies to make decisions in real-time and whether they should be maintained in the company (Plunkett, Attner Allen 2011). Feedback Control However, in case feed-forward and concurrent controls have the potential to take much time or prove too costly, an alternative type of control for the IT companies could have been feed-back control. The IT companies in India failed to effectively apply this type of control to identify and correct the problems in the company once they have happened (Plunkett, Attner Allen 2011). In the case, although Indian IT companies lodged complaints with the police against some recruitment agencies after which some of the agencies were asked to refund the expenditure incurred in hiring the dismissed workers, it failed to perform performance appraisals. This could have enabled the Indian IT companies to measure the experience and qualifications of their employees over time. For instance, after the employees had been recruited, the IT companies could have conducted performance appraisals to evaluate the staff, to develop the individual employees and to improve the organizational performance (Karlson 2008). Suggested Strategies reflecting control process to be used There are several strategies reflecting control that can be applied by the CEO of the Executive Recruiters Association (ERA) to reduce variations in accuracies of CVs throughout the Indian IT companies. Measuring Measuring involves investigating the origin and estimating the extent of specific deviances, problem areas or variations. The CEO should identify the origin and extent of recruitment of candidates with fake CVs. In the case study, since the problem area is the tendency of the recruitment agency to recruit employees with fake CVs, focus should be on conducting researches and surveys to analyze the extent of the problem and performance of the recruitment. At this stage, the CEO has the option of using strategic surveillance to identify the ongoing issue of recruiting candidates with fake CVs in India’s IT job market. This strategy is based on the conception that crucial yet unanticipated information is uncovered through analysis of multiple information sources. Possible sources of information could include inspections, observations, conversation and researchers published on trade journals and magazines, written reports, statistical reports and oral reports (Fairholm 2009). Comparing Comparing involves examining the variations between a predetermined standard and actual performance. At this stage, the CEO should determine the discrepancy between the predetermined standards of performance and the actual performance of the recruitment agencies. Focus should be on the extent and the direction of the variation. The CEO can use benchmarking to identify the potential areas of improvement and the performance gaps by comparing the performance of the recruitment agencies in India and other areas. Action At the action stage, the CEO can choose to do nothing, correct the actual problem or revise the standard. By doing nothing, the CEO selects to take no action. By selecting to correct the actual performance, the CEO takes a corrective action if the source of variation has been deficient performance. An immediate corrective action will correct the problem at once and restore efficiency. With regard to the Indian job market, different IT companies have expressed concern that recruitment agencies are perpetuating the practice of recruiting candidates with falsified information (Chea 2012). Such an event should trigger an immediate and comprehensive reassessment of the recruitment agencies’ strategies. The CEO should form crisis teams to tackle the response to the issue (Staden 2001). The CEO may also choose to revise the standard since the variance may have been caused by an unrealistic or deficient standard. Implementation Implementation occurs as a series of steps, investments or activities that happen over a length of time. As the CEO, it would be essential to accomplish special projects that tackle the issue of fake CVs, reassign and employ staff at ERA. Further, a directive should be issued to the Indian recruitment agencies to do the same (Bakar, Asim & Virgiyanti 2011). In this case, two types of implementation strategy would be essential, namely milestone reviews and strategic projects or thrusts. Strategic thrusts will provide information to enable the CEO whether the overall recruitment strategy to tackle the issue of fake CVs is shaping up as expected. Concerning milestone reviews, the progress of the ERA’s strategy to tackle the issue of fake CVs at various levels and milestones is monitored (Chea 2012). Suggested follow up ‘Control’ checks Various follow up ‘Control’ checks can be leveraged to ensure that the strategies brought in for compliance by the recruitment agencies are being followed. These include auditing and monitoring, investigations and accountability and enforcement. Auditing and monitoring Auditing and monitoring the recruitment agencies can ensure that the proposed strategies to prevent recruitment of candidates with falsified CVs are implemented. This follow up control check is designed to detect possible frauds through bribery by the candidates and misconduct to determine whether the agencies’ controls are working as expected (KPMG 2006; Karagiorgos et al, 2009). It involves examining and evaluating areas of recruitment processes within the agencies to determine whether the proposed strategies are working, whether high priority areas (in this case preventing recruitment of candidates with fake CVs) are being met, and whether the changes effected in the IT job market are being met. A major question would involve whether the strategy is beneficial to the recruitment agencies and the recruiting companies (Botha and Boon 2003). Investigations When information pertinent to potential or actual misconduct or fraud is uncovered by ERA, it will be crucial to conduct investigation to determine whether there is compliance to the strategies (KPMG 2006). The purpose of such an investigation would ensure that facts are gathered to determine the weak areas in the strategy and what needs to be adjusted to enable effective compliance. An effective investigation can also ensure that ERA addresses potentially weak situations. Proper investigation would normally involve as special committee that can be able to ward off interference or undue pressure by the agencies. It should also be objective and unbiased, with the soles purpose of ensuring transparency in the job market. Further, it should require full cooperation and from the recruitment agencies ensuring no obscuring of concerns that gave rise to the investigation (Karagiorgos et al, 2009). Accountability and enforcement Consistent and reliable disciplinary system is a central control measure that can be crucial for deterring misconduct by the recruitment agencies. This should be made a requirement by ERA under the regulatory framework (KPMG 2006). Through promoting meaningful sanctions, ERA can send signals to both its internal staff and the recruitment agencies that the organization considers the full implementation of its strategy against fraud in recruitments its primary objective (Harrer 2008). A proper disciplinary system should be communicated to all the recruitment agencies, which promote progressive sanctions depending on the nature of the offense. The managers of the recruitment agencies should as well be held accountable for the full implementation of the strategies. They should also be held accountable for the misconduct of their subordinates whose conducts undermine the principles of the proposed strategies (Karagiorgos et al, 2009). Conclusion The problem of recruiting employees with fake CVs shows faced by the Indian IT companies shows that the companies have failed to effectively carry out feed-forward control to monitor the inflow of human and financial resources into a company to ensure they meet the standards predetermined for the transformation process before unforeseen problems happen. The companies have also failed to carry out cconcurrent control to identify and prevent employee proficiency related problems as they happen. They have also failed to carry out feedback control to identify and correct of employee recruitment-related problems in the company once they have happen. Various Strategies reflecting the control process can be implemented by the CEO for Executive Recruiters Association (ERA) to reduce variations in accuracies of CVs throughout the Indian companies can be implemented. These include sspecial alert control, which consists of thorough and rapid assessment of the strategies used in recruitment. Other strategies include iimplementation control and strategic surveillance. To ensure the success of these strategies, follow up control checks essential. For instance, auditing and monitoring the recruitment agencies can ensure that the proposed strategies to prevent recruitment of candidates with falsified CVs are implemented. Iinvestigations and enforcing accountability can also be used effectively to check on extent of compliance. References Anderson, T & Knudsen, T 2007, Strategic Organization: An Integrative Strategy Making Model, Paper To Be Presented At The Druid Summer Conference 2007 On Appropriability, Proximity, Routines And Innovation Copenhagen, CBS, Denmark, June 18 - 20, 2007 Bakar, A, Asim, M & Virgiyanti, W 2011, "Implementation of Strategic Management Practices in the Malaysian Construction Industry," Pak. J. Commer. Soc. Sci. 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