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Does Strategic Fit Result in Better Fitting and More Successful Employees?

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Does Strategic Fit Result in Better Fitting and More Successful Employees? Does strategic fit result in better fitting and more successful employees? Author: Malin Björkhem Tutor: Bertil Hultén Program: The Economy Program Subject: Business Economics Level and semester: Master level, spring 2008 Baltic Business School Foreword This master level thesis has been written within the scope of the master program of Business Economics at the University of Kalmar. The thesis presents ideas about recruitment that are not yet very widely discussed, ideas about strategic fit of employees. With this thesis I aim to bring forth a discussion about the connection between a company’s business strategy and the selection of employees. It has not been an easy subject to research but it has been very interesting and developing. I would like to thank everyone who helped me to make this possible by taking the time for interviews, helping me with connections and providing me with facilities for interviews. The time during which I have been writing this thesis has been one of the most challenging periods in my life. There were many moments along the way when I doubted that I would ever gather enough energy to finish the thesis which I am now proudly and happily presenting. I could never have been able to finish this thesis without the positive support that I have received from my family, friends and colleagues. I would like to direct two special thanks to my fiancé David André for all the support and help, and to my tutor Bertil Hultén who has always been positive and encouraging, and who has helped me make this thesis become as good as it could be. Brussels the 28 th of May 2008 Malin Björkhem Abstract Title: Does strategic fit result in better fitting and more successful employees? Author: Malin Björkhem Tutor: Bertil Hultén Subject: Business Economics Purpose: The main purpose of this thesis is to bring forth the discussion about the possible connection between the business strategy and selection of employees. Method: This thesis is based on inductive reasoning and the research is done with a qualitative research method. The study has been done in the form of a case study and the collection of data has mainly been done through semi-structured qualitative interviews. Conclusions: At the studied company the personnel working with recruitment are not intentionally looking for a strategic fit, and the respondents were not sure if strategic fit would be beneficial for the studied company. The highest focus in the recruitment process in this company is given to the job specific requirements and the company values. But after analysing the factors that the respondents are focusing on during the selection process, and the reasons why, my conclusion is that aiming for strategic fit is generally of interest in the selection for all positions in the studied company, although it is more relevant for some positions. The job specific characteristics are of higher importance though. Without the technical knowledge and skills, and the personality needed to carry out a specific job the strategic fit is not of importance. Due to practical limitations you have to identify the most crucial requirements. Therefore it is necessary to prioritise the requirements to use in the selection, and in this process the strategic fit might get a lower priority and therefore fall out of the scope of the selection. I believe that strategic fit could lead to both a higher chance of retention and to alignment with the business strategy. The connection between strategy and selection is present, at least at Borealis, through the company values. But this connection is not something that the people are aware of. I believe that it is important to be aware which factors that are affecting the selection and why. Without the awareness and conscious considerations in the choice of requirements, and in the selection, there is a higher risk of mistakes and mismatches. Strategic fit should therefore always be a part of the discussion before recruitment according to me, just like all other factors, even if the strategic fit might not have a place in the final requirements. Content 1. Introduction .....................................................................................................6 1.1. Human resources in a strategic perspective.....................................................................6 1.2. Problem discussion..........................................................................................................8 1.3. The significance of the problem ....................................................................................11 1.4. Research question..........................................................................................................12 1.5. Purpose of the thesis......................................................................................................12 1.6. Restrictions ....................................................................................................................12 1.7. Concepts ........................................................................................................................13 1.8. Disposition of the thesis ................................................................................................15 2. Method............................................................................................................16 2.1. Research strategy...........................................................................................................16 2.2. Qualitative research method ..........................................................................................16 2.3. The research process......................................................................................................18 3. Frame of references.......................................................................................25 3.1. Strategic fit?...................................................................................................................25 3.1.1. How does the strategy affect recruitment? .............................................................25 3.1.2. Should companies aim for strategic fit? .................................................................26 3.2. Which factors are considered in the selection of employees? .......................................28 3.2.1. Competence ............................................................................................................29 3.2.1.1 Knowledge and skills............................................................................................30 3.2.1.2 Values, attitudes and behaviours ..........................................................................31 3.2.2. Motivation ..............................................................................................................34 3.3. The connection between the concepts ...........................................................................36 4. Results.............................................................................................................38 4.1. Case Borealis .................................................................................................................38 4.2. Strategic fit?...................................................................................................................38 4.2.1. How does the strategy affect recruitment? .............................................................38 4.2.2. Should companies aim for strategic fit? .................................................................40 4.3. Which factors are considered in the selection of employees? .......................................42 4.3.1. Knowledge and skills..............................................................................................43 4.3.2. Values, attitudes and behaviours ............................................................................44 4.3.3. Motivation ..............................................................................................................47 5. Discussion .......................................................................................................49 5.1. Which factors are considered in the selection of employees? .......................................49 5.1.1. Knowledge and Skills.............................................................................................49 5.1.2. Attitudes, Values and Behaviours ..........................................................................50 5.1.3. Motivation ..............................................................................................................51 5.2. Strategic fit?...................................................................................................................52 5.2.1. How does the strategy affect recruitment? .............................................................52 5.2.2. Should companies aim for strategic fit? .................................................................52 5.2.3. Does Borealis aim for strategic fit? ........................................................................53 6. Conclusions.....................................................................................................58 6.1. Case Borealis .................................................................................................................58 6.2. The research question ....................................................................................................58 6.2.1. Which factors are important to focus on in
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