Recruitment of a StarGROUP 2 - PRESENTORS NAME:

YOGESH SINGH: 11PT-045REEMA SAXENA: 11PT-027

MONALISA SIL: 11PT-016NUPOOR SINHA: 11PT-022SHWETA SAINI: 11PT-039

Introduction

Rubin, Stern and Hertz (RSH) is an investment banking firm in New York.

Stephen Connor is the director of research at RSH. RSH Research department work is divided into :-

Sell Side: Investment Banks (brokerage houses) make money both through their underwriting business and trading conducted at their firms.

Buy Side: Money management firms which seek their clients money by purchasing stocks for their portfolios.

Role of research • Ultimate purpose of research at an investment bank is to help

move securities.• Sell side analysts research their particular industry and develop

hypotheses concerning the economic future of the specific companies.

• On average, sell side analysts cover anywhere 10 to 18 companies within their industry.

• Buy side gain information both about their industry and the particular companies they cover in order to form investment strategies.

• Buy side analysts tend to cover a wider spectrum of 30 companies at a time.

Organizational Culture of RSH

Strong corporate culture(especially in research wing)

Teamwork oriented, family like atmosphere.

Promoted strong collaboration and support instead

of competitive culture.

Each analysts strove to become raked by Institutional

Investor magazine(II) but also focused on the success

as a whole.

Compensation Strategy at RSH

• Teamwork led to superior company coverage.

• Bonuses(additional incentive) were linked not only to

individual success but also to the success of the group.

• Senior analysts mentored junior analysts and there

was a formal training program to mold promising

analysts into superstars.

Hiring dynamics at RSH

It was essential both to be a first rate analyst and to

fit in well with the firm’s culture.

RSH was dedicated to its employee and expected

similar dedication in return.

It was common for people to remain for the bulk of

their careers.

Low turnover rate

Problem recognition

Announcement of resignation by a star semiconductor analyst - Peter Thompson.

Peter was RSH’s only semiconductor analyst. RSH was in need of strong coverage of the

semiconductor industry because of an upcoming deal with the PowerChip Company.

Losing one analyst may open the door for other analysts to leave RSH which could lead a big impact on the firms trading-commission revenue.

List of Alternatives

• To replace Peter with another star, even though we did have to pay him or her star-level compensation.

• To hire a senior person from a regional firm.• To hire a highly ranked or well-established

senior analyst which may be willing to bring his junior along with them.

Individual Factor•Background – Technology analyst, alumni of MIT & Yale school of management , belongs to a well educated family.•Attitude – Proactive, •Aspiration – Ranking with excellent compensation•Past Short Term Performance – Achieved ranking in II in 2003.•Long Term Performance – In 1995 II ranked him as a runner up.•In 1998 ranking dropped•In 2003 achieved ranking in II.

Interviewing – Gerald Barum

Organizational Factor Goltz & Loeb

•Culture – Informal, No team work approach but competitive environment.•Strategies – Specializes in technology companies and made many other unknown companies blossom •Structure – Less Supervisory•Management System – Individualistic

Interviewing – Gerald Barum contd..

Evaluation - Gerald Barum

Strength•Covering semiconductor industry for only 18 months and he has already in 11th place in analyst rankings.•Active travelling.•Proactive in giving response to others (through email etc.).•Exceptional client service.•Excellent industry knowledge, stock picking etc.

Weakness•Sometimes impatient•Unapologetic• Negative approach - Blame others or circumstances for not getting work.•Might turn out to be a job hopper.•Immature behavior with juniors (firing junior).•More concerned about compensation.•Not fair in approach

Interviewing – Sonia Meetha Individual Factor

Background – Major in Engineering and MBA Attitude – Focused on organizational culture, promising and

personable Aspirations – Global reach is important to her and looking

forward to be a star. Past short term and long term performances –

Elegant financial models Perfect timing of research reports with accuracy of stock

picking. Successfully done reports on two non U.S. semiconductor

firms which was well received by clients. Long range vision for the global franchises. Up-and-comer mentioned by II Magazine

Interviewing – Sonia meetha contd..

Organizational Factor - WHS Culture – There was no official training and development

program. WHS analysts were essentially autonomous entities.

Compensation Strategies – Linked to the amount of commission money employees generated.

Structure – Minimal managerial staff and covered only certain industries.

Management System – Supervisory micromanagement.

Evaluation - Sonia MeethaStrength•“Up-and-coming“ recognition by II magazine and 8th place in analyst rankings.•Both technical and sales background•Excellent writer and responsive to her clients•Accurate in stock picking•Good Interpersonal and communication skills•Worked on 2 Non-U.S. semi conductor firms•Connections with CEO’s of some major companies

Weakness•Juggle for raising her two children•Not willing to travel•Lack of experience at larger firms.

• Background – Lower middle class family, graduated in Economics from Harvard in 1982 and further did MBA from Columbia's business school

• Attitude –Ambitious,workaholic,intelligent,ready to take challenges.High dedication towards work(Impact :could not balance personal & professional life)

• Aspiration – To be a star • Past Short Term Performance – Recently ranked runner up in the II

Analyst Rankings in the semiconductor industry.• Long Term Performance – Working with Jefferson for 15 years

now , star performer throughout his career , always received appreciation for the quality of his research reports from his clients.

Interviewing – Seth Horkum

Organizational FactorCulture – Competitive environment , individualistic growth oriented.

Structure – Semi – formal.

Performance – Compensation and bonuses were linked to the performance revenues generation , report writing , II rankings , client interaction etc.)

Management System – minimal managerial authority.

Interviewing – Seth Horkum contd..

Evaluation - Seth Horkum

Strength•5th place in analyst rankings •Brilliant stock picker•Workaholic , intelligent enthusiastic and loyal .•Excellent Report Writer •Congenial personality would help him to build up a large client base.•Strong contacts at Power Chip

Weakness•Reason for leaving Jefferson after 15 years .•First time ranking in II. •Lack of experience in dealing with larger firms.

• Background – MBA from Columbia’s business school.Prior to RSH , worked at Win412, top technology firm in California

• Attitude – Hard working and talented at her work, but due to her introvert nature , she took some time in collaborating with her co-workers.

• Aspiration – To be a star (enthusiastic and interested)

• Past Short Term & Long Term Performance – Already working for RSH for more than 3+ yrs., got appreciation and recognition for her recent role.

Rina Shea

Evaluation - Rina Shea

Strength•Hard working and talented•Enthusiastic about her work(self motivated and ambitious)•Working for RSH for 3+ years

Weakness•Introvert in nature•Lack of experience required for the current profile.

Interviewing – David Hughes Individual Factor

Background – Electrical Engineer , MBA , Very experienced Attitude – Believe in interpersonal relations, de-

motivated (not self motivated) Aspirations – Recognition Past short term and long term performances – In 1976 he was junior analystIn 1979 he became senior analystIn 1982 he was an II runner-upIn 1988 moved to spenser for recognition Ranked 4 times First and 5 times second

Interviewing – David Hughes Individual Factor

Background – Electrical Engineer , MBA , Very experienced Attitude – Believe in interpersonal relations, de-

motivated (not self motivated) Aspirations – Recognition Past short term and long term performances – In 1976 he was junior analystIn 1979 he became senior analystIn 1982 he was an II runner-upIn 1988 moved to spenser for recognition Ranked 4 times First and 5 times second

Organizational Factor Spencer’s Company

•Culture – Strictly Formal•Strategies – First among global operation•Structure – Set Hierarchy •Management System – Standardized procedures

Interviewing – David Hughes contd..

Evaluation - David Hughes

Strength•Bright and articulate.•Technically sound•Ranked 2nd Teamer by II magazine for past 15 years.•Fantastic credentials.•Famous •Has leadership qualities

Weakness•Fixed pattern of work .Old fashioned. No out of box or 360 degree thinking.•Hesitant to learn new skills.•Casual and overconfident during interview.

Evaluation of External Sources

Advantages• More Choices• Availability of Talented

candidates.• More Experienced

Candidate

Disadvantage• Expensive & Time

consuming• Unfamiliarity with the

organization• Discourage the existing

employees.

Evaluation of Internal Sources

Advantages• Familiarity with own

employees or team members

• Better use of talent• Encourage/ Motivate

existing employees

Disadvantages• Limited choice.• Discourage competition

S.NO Description Weightage DAVID HUGES GERALD BAUM SONIA MEETHA SETH HORKUM RINA SHEA

1

Culture Knowledge of RSH & Ability to Fit in RHS 30% 20 17 18 25 22

2

Family (support for joining your company) 10% 8 8 8 8 9

3

Fortune (and Glory to join RSH) & Importance to Compensation 10% 5 3 4 5 3

4Freedom (to make decisions) 5% 2 2 3 3 2

5

Past mistakes and its awareness or RED FLAG (candidates who don't take responsibility for past mistakes ) or who speak poorly of most of their bosses) , Past Accomplishments, Previous bosses feedback

20% 10 6 7 9 6

6Years of Experience 10% 9 7 8 9 5

7Teamwork spirit 15% 10 7 9 10 8

TOTAL 100% 64 50 57 69 55

Conclusion

• Short Run Decision :• Long Run Decision :