HRIS

1st Submission

Date Due: 15st April 2010 17:00 PM

Number of Pages: 23

Word Count: 4,020

MNM59

Lecturer’s Name: Asher Rospigliosi, Clare Millington,

Maura Sheehan and Sian Eggert

By Atchar Suwattanathum : Student no. 08837612

Apple Inc E-Recruitment

Apple Inc.

Executive Summary

This report approach basic knowledge, techniques, theories and statistics in human

resource recruitment and information system to access the most proper solution for

E-Recruitment system implementation of Apple Inc. The advantages and

disadvantage of E-Recruitment was used to be information in order to determine

alternatives.

The most admire company of business people like Apple Inc generally face with

massive information of applicants that impact to human resource management in

recruitment problem. The traditional and manual recruitment system cannot properly

deal with the quantity because of limitations itself. The most proper alternative and

characteristic of Apple’s E-Recruitment are evaluated in every stage of

implementation. Pre-Implementation evaluate in project selection, feasibility study,

analysis, design and construction. Implementing timeline is the major concern in

Implementation stage and Post-Implementation concerns with user’s feedback,

reviewing project result, monitoring dual phased process between new and old

software.

With all aspect possibility evaluation of Apple’s E-Recruitment project, Apple Inc is

able to use its core competency in computer and software market leader improve

and develop organization’s current E-Recruitment system by creating its own in

house software to solve the problem of massive application in order to select

potential candidates with least time consuming.

Apple Inc.

Table of Content

EXECUTIVE SUMMARY 2

1. INTRODUCTION 5

2. HUMAN RESOURCE MANAGEMENT - RECRUITMENT AND SELECTION 6

3. HUMAN RESOURCE INFORMATION SYSTEM IN E- RECRUITMENT 7

3.1 TREND OF RECRUITMENT PLATFORM 7

3.2 ADVANTAGES OF E-RECRUITMENT 8

3.3 DISADVANTAGES OF E-RECRUITMENT 9

4. CURRENT RECRUITMENT SYSTEM 11

4.1 CRITICAL APPLE’S RECRUITMENT SYSTEM 12

5. RECOMMENDATION AND IMPLEMENTATION 13

5.1 PRE-IMPLEMENTATION STAGE 13

5.2 IMPLEMENTATION STAGE 19

5.3 POST-IMPLEMENTATION STAGE 20

6. CONCLUSION 21

REFERENCE 22

Apple Inc.

List of Tables

Table1: Estimating yearly cost saving of Apple’s E-Recruitment software 15

Table 2: Success criteria weighting of Apple’s E-Recruitment 16

List of Figures

Figure 1: Apple website 11

Figure 2: Apple E-Recruitment platform 17

Figure 3: Example of Link software 18

Apple Inc.

1. Introduction

Apple Inc is the world best-known company for personal computer that was

established by partner college dropouts in USA; Steve Wozniak and Steve Jobs in

1976. Just two year later, Apple Inc became one fastest growing company in USA

with Macintosh software. From 1989 to 1991 it was the golden age for Macintosh

(Encyclopedia Britannica, 2010); however, due to high price in production, unrealistic

marketing plan and departure of founder, Steve Job and many Apple executives in

1985 including Microsoft continued gain personal computer market share by

Windows during 1991 to 1993, these reasons brought Apple depth into the Dark

Age. Until returning of Steve Jobs in 1996 from acquisition with NeXT, he

restructured Apple’s company strategy by emphasizing in differentiation strategy. As

wildly recognize that Apple’s products are outstanding in design and innovate

leading which were prove from the successful of the introduction of new product

lines; for example, The introduction of iPod in 2001that was phenomenally

achievement in portable music players market with sale volume over 100 million

units within six years. In addition, Apple aggressive competed into mobile market

with iPhone which was launched on June 2007 and dramatically successful. Apple

has current three main product lines; iMac, iPod, and iPhone which were produced

by subcontractors almost base in Asia such as China, Taiwan, Thailand, etc (Apple,

2010).

Apple have opened Apple’s retail store and have been expanding to 273 stores

worldwide in 2009 that made support the successful of Apple product distributions

and shape the strong financial health of company. From the most admired

companies ranking of CNN; Fortune’s survey on 22 March 2010, Apple is the

number one most admire‘s businesspeople company from any industry (CNN,

2010).

Apple Inc.

2. Human Resource Management - Recruitment and Selection

Recruitment and selection referred to Bratton (Bratton et al, 2003) always is the

important and first stage of human resource management function in company. The

objective of recruitment about attracts the talent people to be the company’s

employees following goal of company and labour demand forecasting; in addition, it

is able to be one way to and promote advertise in the public’s mind. Referred to

effective recruitment and selection practice (Compton et al, 2009), there are many

method of recruitment that generally separate by source to internal and external

source. The internal source is such as transferring, department examination, and

employee’s recommendation and so on. For external source that support in

advertisement of organization such employment agency, job center, news paper,

company website, etc. In the most case, company focus on recruit from external

source due to generate more competition of candidate that means providing variety

of choice and high potential to hire the employees of the dream. Especially, in

current many world class companies realize on value of human resource and

development people more than ever before; for instance, Steve Jobs; Apple Inc

CEO used to mention that “the most value asset of Apple Inc is employee”.

However, the costly of recruitment of external resource is the major weak point of

this way practically using job agency and newspapers and time consuming is

another disadvantage which are management challenges and every company intend

to overcome over past a year and a year.

Apple Inc.

3. Human Resource Information System in E- Recruitment

The idea of human resource information system (HRIS) came from merging between

HR process with information technology in order to collect and maintain employee

data accurately and effectively (Ceriello, 1998). HRIS in recruitment process over

past 10 years were developed rabidly as the development in technology including

occur new word and definition of HRIS in recruitment from the revolution of internet;

E-recruitment or online recruitment is using web-based and internet -based for

recruiting process (Hopkins, 2003).

3.1 Trend of recruitment platform

During over past a decade there are wide spread of E-Recruitment referred to the

information from survey if the Chartered Institute of Personnel and Development or

CIPD in 2008 (CIPD, 2010), 75% of company use their own website to attract the

applications and it is the fourth popular method in recruiting. There are growth of

many big job boards player such as search4job, Seek and so on that allow

candidates post and directly entry their information on website 24/7.

In addition, the development of web 2.0 that related to two way communication

facilitate interaction between whether users and sever and among users and users

such as information sharing, web-based communities (Encyclopedia Britannica,

2010), this crated new recruitment platform in current and potential to be distribute

widely in the future from increasing trend of users of community website; for

instance, Facebook has more than 150 million worldwide users from CIPD survey in

2009 (CIPD, 2010). As Gordon Brown, the ex-British Prime Minister, mentioned that

people more than 100 million are using online social networking site such Facebook,

Twitter, YouTube and so on thus web 2.0 established a new interdependent and

connected world.

Apple Inc.

3.2 Advantages of E-Recruitment

E-Recruitment revolted of 2000s recruitment platform with undeniably many benefits

both tangible and intangible benefits (Boddy et al, 2005):

3.2.1 Tangible benefits

First obviously benefit is vacancy advertisement cost saving, referred to CIPD

survey in 2008 (CIPD, 2010), the employers more than 7 in 10 used cooperate

websites to promote vacancy positions that 4 in 10 of respondents claimed that E-

Recruitment can reduce recruitment cost 73%. In addition, the investment in web-

based and online recruitment require small amount of budget that in some

companies use their IT employees to create and maintenance E-Recruitment

system.

Time saving is the second major advantage of E-Recruitment, as Gayleen Robinson,

Staffcv marketing manager claimed the effectiveness of E-Recruitment that

company compare between working time spent on manual and online method then

convert to direct cost, the result was up to 90% of time saving. Not only employer’s

time saving but also reduces applicants time and flexible in to access in database 24

hours.

Quality and accuracy of information improvement (Boddy et al, 2005), not only the

computer-based and internet-based generally provide speed in searching, but also

usually more accurate and consistency data including in terms of up-to-date

information. The error is always unexpected costly expenditure that difficult to

evaluating.

Apple Inc.

3.2.2 Intangible benefits

Ferran claimed the intangible of IS investment (Ferran, 2008) that it was able to

improve communication and image of company. This is directly concerned with

reputation of company itself especially for international organization. Impossibly,

Apple Inc was the most attractive company in 2008 and maintain image of innovative

organization, if it still uses manual system in recruitment.

In addition, it can be the competitive advantage and help to support company’s

strategy in term of differentiation (Porter, 1985). The firm is able to use this

advantage to lead its competitors. On the other hand, the cost leadership company

can also gain the advantages from tangible side to encourage its low cost strategy;

for example, Virgin Blue Airline, Australian low cost airline is using online recruit all

their cabin crew position( CIPD, 2010).

Moreover, the web-based recruitment system provides flexibility of HR staffs in case

of the website was developed and maintenance by in house IT staffs by reducing the

complex communication between outsourcing and HR user. And due to flexibility

tend to reduce time consuming in routine recruitment activities so the chain benefit is

HR employees have more available time for development and strategic tasks.

Another indirectly tangible benefit that occurs from using in house IT staffs is; it

supports learning and transfer knowledge within organization from sharing, storing

and transferring information (Boddy et al, 2005).

3.3 Disadvantages of E-Recruitment

However, E-Recruitment has some weak points that each company necessary to

consider as much as possible preventing the undesirable damages. Many

individuals and researchers widely argued about E-Recruitment in terms of security

Apple Inc.

and privacy issue especially in cases of job boards and society networking because

normally applicants public their personnel information on web board. Besides, if

compare technology in white side that is protected personnel data by programmer;

on another way around, hacker is who use black side of technology for personnel

benefits.

E-Recruitment usually is one way communication so it is a core limitation which

almost entry company is not able to eliminate traditional face to face interview in

selection process. Although many company allow applicants post or attach their

additional information such as personnel story and experiences, it still without

interaction between candidates and interviewers. HR staffs can use the individual’s

story in narrative analysis to identify and evaluate suitability of applicant

(Czarniawska, 1998).

There were many reports showed E-Recruitment fail because of the internet

limitation (Feldman et al, 2002, p175-206). The job board normally overload with job

proposing for social networking where had a lot user registered often response very

slowly. Most of these problem potential to appear in developing countries rather than

in developed countries.

Although the quantity of candidates is the strong point of E-Recruitment, it is able to

be weak point if consider at another aspect. Due to this attract both of talent

candidates and persons who change job frequently more likely to be called job

hoppers which base on survey 35% of staff who were hired from online recruitment

had more than three times job changing within five years (Wuttke, 2008, p14). It

leads to high turnover rate and increase replacement cost

Relationship and culture issue is another concern for HR manager, particularly

online recruitment on job boards. Referred to Wolter’s study (Wolters, 2006), he

mentioned about the negative relationship from comparison between suitable

respondent and information proposal from job seekers. Furthermore, the impact of

organization culture fit is a delicate and unable look across issue. Particularly, there

Apple Inc.

is diversification of age and gender in organization. Mostly, young candidates use E-

Recruitment more than older people and men more use online job searching than

women (SHRM, 2010).

4. Current recruitment system

Due to Apple is the number one most admired company from ranking of CNN;

Fortune’s survey on 22 March 2010 (CNN, 2010), Apple website attracted tons of

candidate per day. Apple’s web-based uses Apple ID and password to identify huge

such information. This is not necessary to Apple hire agency or outsourcing for

recruitment that is advantage from company reputation. Apple web page is also a

good advertisement channel; it posted a lot of attractive information for job seekers

such as benefits of Apple staffs and VDO interview of Apple’s staff (Apple, 2010).

Figure 1: Apple website

Source: Apple (2010)

Apple Inc.

Noticeably, there is not Apple’s vacancy position post on job boards by company

itself same as advertisement on job center also.

4.1 Critical Apple’s recruitment system

After considering Apple’s recruitment method and company profile, it was able to

assume that the talent candidate attraction was not a major challenge of Apple HR

department because of widely reputation and stability of company. Beside, due to

Apple Inc is the well known in personnel computer industry and itself operating

system Mac, it is strongly reason to conclude that Apple spent very small amount of

capital in its website E-Recruitment system.

The potential problems of Apple E-Recruitment process should be how to deal with

the enormous of CV and information to distill the most suitable employee with less

time consuming? In addition, the main recruitment cost of big worldwide company

like Apple Inc is not cost of advertising on publication sources or outsourcing and job

agency like general small to medium company but it possibly to be hidden operating

cost of HR staffs. The more working time for selection, the more labour cost of

company that it is difficult to measure or estimate such hidden cost thus this is risky

circumstance of company because how can HR staff improve the recruitment if they

cannot evaluate impact and wasting cost of system?.

The general problem of E-Recruitment in quality of application’s information is also

one issue of Apple with the limitation of one way communication.

Apple Inc.

5. Recommendation and Implementation

To deal with massive of candidates information, HR department cooperate with IT

department to develop in house Apple’s E-Recruitment software. Apple not

necessary to consider purchase software from outsourcing due to Apple has core

employee who are expertise in software development and familiar with internal

system including organization culture so it can be a guarantee sign of the high

software performance ; in addition, obviously that outsourcing software purchasing

require more investment than in house operating. However, E-Recruitment software

take more developing time than purchasing a ready to use software but in aspects of

costing and confidentiality of program performance seems outweigh than time

consuming in program development issue. Furthermore, indirect benefits from in

house software are in the areas of differentiation generating that support Apple’s

reputation and image; in addition, knowledge transfer and learning within

organization that encourage company’s knowledge management.

Step of development Apple’s E-Recruitment software can separate to three stages

namely Pre-Implementation, Implementation and Post- Implementation. In addition,

It can apply IS concept in system development life cycle or water fall model of Royce

(Leffingwell, 2003).

5.1 Pre-Implementation stage

Referred to waterfall model of Royce the step in project selection, feasibility study,

analysis, design and construction require cooperating from all concern departments

and major responsibility departments are HR and IT department. It is able to cut

vendor selection process due to propose to use in house operating.

Apple Inc.

5.1.1 Project selection - Based on Critical Apple’s recruitment system and

recommendation parts. It can conclude that Apple’s E-Recruitment software most

suitable is created by in house IT staffs with commentary of company and estimated

small budget that will be analyzed with economic feasibility in next step.

5.1.2 Feasibility studies – In parts of technical and operational are excellent

possibility due to high skill of IT department and flexibility to creating software. In

terms of economic feasibility, it concerns with making decision in project investment,

Net present value (NPV) and Internal Rate of Return (IRR) are usually use in

analyze the profitability of investment. Based to (Young, 2000), NPV concept is

comparison between value of money in current and the value in the future with add

inflation rate and if amount of NPV is less than zero that show the cash flow is

negative that made the project is potential to be rejected. In case of Apple Inc, this

article selected IRR to analyze Apple’s E-Recruitment financial feasibility analysis

instead of NPV. IRR is the actual yield of interest or discount rate from expected

investment and its conclusion same as with NPV method.

The basic principle in decision making is; if IRR greater than the weighted average

cost of capital (WACC), the result is; E-Recruitment software development project is

accepted because its rate of return on invested capital more than the cost of

investment.

As showed in table1, it showed estimated yearly saving cost of Apple’s E-

Recruitment software in labour, energy and maintenance. The estimated number

based on annual report of Apple Inc in 2009 (Apple, 2010)

Apple Inc.

Year Savings Labour cost (4%Inflation) (€ 000)

Savings Energy and Maintenance (4%Inflation) (€ 000)

Total saving cost (€ 000)

Purchasing software (€ 000)

Software development and Energy and maintain cost (€ 000)

Depreciation of computer (€ 000)

Net profit from E-Recruitment Implementation after tax (€ 000)

IRR

0 0.0 0.0 0.0 0.0 (1,050.0)   (630.0)

74%

1 1,100.0 50.0 1,150.0   (20.0) (10.0) 442.0

2 1,144.0 52.0 1,196.0   (20.0) (10.0) 460.4

3 1,189.8 54.1 1,243.8   (20.0) (10.0) 479.5

4 1,237.4 56.2 1,293.6   (20.0) (10.0) 499.4

5 1,286.8 58.5 1,345.3   (20.0) (10.0) 520.1

6 1,338.3 60.8 1,399.2   (20.0) (10.0) 541.7

7 1,391.9 63.3 1,455.1   (20.0) (10.0) 564.0

8 1,447.5 65.8 1,513.3   (20.0) (10.0) 587.3

9 1,505.4 68.4 1,573.9   (20.0) (10.0) 611.5

Table 1: Estimating yearly cost saving of Apple’s E-Recruitment software

The IRR equation:

0 =

∑ NCFt(1+i )t

i = Internal rate of return

NCFt = Net cash flow year t

Referred to IRR equation (Wilkinson, 2005), IRR = 74% that higher than 12%

WACC; as a result of this, Apple are very highly favorable in decision implement E-

Recruitment software. Based on estimated cost saving in this table, Apple is able to

save around € 1.15 million at the end of first year and payback period around 6.5

month.

Apple Inc.

5.1.3 Analysis – As mentioned in critical Apple’s recruitment system and

recommendation parts, the main proposal of Apple’s E-Recruitment software

emphasis on time saving selection, user friendly and quality of candidates. In

analysis part should consisted of identify objectives and detail of requirements

including critical failures is required considering. Based upon many survey statistics

in IS implementation failure; for instance, survey of Cooper & Lybrand in 1995 found

that large companies in UK more than 60% had problem with computer system fail in

first two years of project implementation (Flowers, 1996). Moreover, Standish Group

also claimed in 1995 that there was around 31% of IS projects were canceled before

implementation and 39% of specific functions were eliminated from originally specific

function or the other word there was original features available around 61% after

implementation (Standish Group,2010) . According to these statistics, it is very

importance for Apple’s staff necessary to minimize potential failure in implementation

and operating (Post-implementation) stage, every Apple’s responsible staff in this

project should define and list all potential failure to access of success criteria.

Referred to scoring model of Standish Group (Standish Group, 2010), success

criteria weighting score of Apple’s E-Recruitment software is showed as table 1.

Success Criteria ScoreProject organization

- Staffs competency 7

- User involvement 15

- Objective and feasibility 10

- Effective planning time line 8

Support

- Executive management supporting 17

- Experienced manager and staffs 12

- Training support 10

Environment

- Company basic require and infrastructure 11

- Organization culture 5

Other 5

Total score 100

Apple Inc.

The supporting from Apple’s executive management is the most important of this

project so project manager should perform in realistic view of project and role in

team building to integrate cooperation between users and developers. Project

manager is able to encourage morale, reduce stress and increase involvement of

staffs that is second key success of Apple’s new software implementation.

Figure 2 : Apple E-Recruitment

platform

Source: Boddy (2005)

Software should be designed and constructed base on agreement of every

responsibility including department and line manager as figure 2 (Boddy, 2005) to

minimize debug of program. There are not vendors or outsourcing in this figure as

normal case due to it is in house software. The information transaction between HR

staffs and candidates is limited by system interface. Scope downing information

channel to one interface system made effective massive data organizing including

prevent repeated information. In addition, it has to response all key criteria from

analysis phase in speech, users friendly and quality including covers all recruitment

area; for instance, based on figure 3(Link, 2010), they are the examples of general

operating of recruitment software that link candidate information in visible display,

document management integrate and link with e-mail., search engine, active

schedule list and so on

Table 2: Success criteria weighting of Apple’s E-Recruitment

software

Apple Inc.

The critical part of Apple’s E-Recruitment software is defining and distillation of

applicant’s criteria. The software should be designed intelligently and automatically

match between data of candidates and vacancies position requirements including

key performance index (KPI) from each department. After run this filter function, the

potential candidates will be summarized, recorded and reported for next step of

selection.

To improve of quality of candidate from selection, Apple’s E-Recruitment software is

able to eliminate general weak point of E-Recruitment system in terms of one way

communication with idea of interactive application on Apple website to go beyond

this limitation. Not only candidates fill all information on website, but also upload their

VDO to be additional narrative. In addition, Apple can interview real time by use

VDO conference instead of face to face in some noncritical positions. And also, it

can create interview online by post VDO of interviewees during ask questions and

keep record of interaction of candidates. According to these ideas, they can improve

in quality of candidate’s information issue including promote company image.

Figure 3: Example of Link software

Source: Link (2010)

Apple Inc.

5.2 Implementation stage

In implantation phase should considered about period of time and the key activity is

evaluating the alternative among changeover or cutover (Flowers, 1996).

A cutover method is; the practice in immediately stop old system and totally turn to

operate new system replace old system. The obviously advantages of this

alternative are; easy to operate because the staffs can focus on new software

whereas ignore and not confuse with old system and also it requires short time for

implement. On the other hand, this method has high risky to make overall operating

fail because there is not spare system (cutover old system) or tend to necessary turn

to temporary manual operating; in case if new system occur some undesirable errors

or unexpected problems. So this method requires very thorough preparation and

more accurate and consistent pre- testing until new system is highly confidential

system.

The changeover alternatives consisted of parallel and phased method. For parallel

concept, it is run new software parallel with old system and implement new software

phase by phase with old program. The key advantage point of parallel is safety

aspect because it allows direct comparison between new software and whereas old

software still running. There is overlap time of new and old program that both

systems are parallel operated at the same time. However, slow processing is one of

weak points of parallel method because it is unable to stop old system immediate

thus it requires overlap time to compare between new and old system that made

extend lead time of implementation longer. Moreover, it increased work load for staff

heavier than cutover method due to the employees operate double works during the

overlap period. Phased method seems to be middle way of parallel and immediate

method. The slightly replace old system with new system step by step by increasing

operating of new system during old system roll-out.

Apple Inc.

Phased method is the most suitable alternative for Apple’s E-Recruitment software

implementation due to mix and match the advantages of parallel and immediately

method and reducer risky and hard work load issue. In addition, due to this software

will be developed by Apple’s IT staffs so there are not concerns in competency of

vendor and communication support.

5.3 Post-Implementation stage

This stage concerns with IS implementation satisfaction, reviewing project result,

monitoring dual phased process (new vs old software) and continued fix bugs and

upgrading software (Flowers, 1996).

To reach in implementation satisfaction conclusion, Apple’s HR and IT staffs should

review both of internal and external users. For internal users, they are able to

summary from users’ opinion of concerned department by using questionnaires or

interviews. In addition, they also can use this questionnaire for applicants who were

selected in second round to evaluate satisfaction of candidate.

Project result evaluation require Apple’s HR and IT staffs evaluate performance in

every aspects which were purposed in planning such as budget, cost saving , time

management , etc and cross check with objectives of project to measure

effectiveness of project and performance.

Apple’s HR and IT staffs can use such performance evaluation to be basic

information in for monitoring and improvement their software to sustain and gain

maximum value from this Apple’s E-Recruitment software.

Apple Inc.

6. Conclusion

This report find that Apple Inc is able to use its core competency in computer and

software area develop and improve organization’s HRM in recruitment by creating its

own in house software to overcome massive information of candidates in recruitment

process with shortest time and the best quality. From feasible summary, it conclude

that Apple’s E-Recruitment software had highly potential to be successful by using

small budget and high IRR rate at 74% and less than one year payback period. In

addition, the effective planning and failure analysis in all three stage of IS (Pre-

Implementation, Implementation and Post-Implementation) are key successful of

Apple’s E-Recruitment software development. Furthermore, with unique idea in

interactive E-Recruitment, it perfectly supports Apple’s differentiation strategy and

spread brand reputation of Apple.

For future E-Recruitment system of Apple Inc possibly is developed by integrating

with technology 2.0 because of the popularity of job searching with internet- based

and social net working that tend to higher trend in next decade.

Apple Inc.

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