Due to these factors, Stingl decided the new HR team would create a new recruiting and selection system toenable the company to find the right people for the right positions in a timely
KEY AREAS OF A CASE STUDY
CASE STUDY SUMMARY
1 Introduction: A brief introduction of Sinotrading Ltd Company and characters’ background
1.1 General information about Sinotrading Ltd.
Sinotrading Ltd was a listed trading company headquartered in Hong Kong with offices in Zurich, Vienna, Shanghai, Guangzhou, and Tianjin It traded children's toys and manufactured wooden toys in company-owned factories located in Shanghai, Tianjin, and Nanhai near Guangzhou The company reported CAD 4,000,000 in revenue last year and employed 2,500 people.
Image 1.1 The partial organizational chart of Sinotrading Ltd.
Source: File forwarded by lecturer.
1.2 Human Resource Manager: Jiao Li.
Jiao Li has served as the HR manager for three years, a position that was her first job after graduation After earning her bachelor’s degree, she studied abroad in Australia and completed a master’s degree in human resource management and organizational behavior.
Smith “was a 35-year-old Canadian with a young Chinese girlfriend He had moved to China nearly 10 years ago and he had been working for the company for two years Before moving to the human resource (HR) department, Smith had worked in the marketing department and was responsible for public relations and international affairs His main responsibility was to act as a consultant in communication matters Due to restructuring activities in the company, Smith’s job in the marketing department was cut and the CEO of the company, Robert Stingl, shifted Smith to the HR team The new HR team’s task was to create and establish a new system for recruiting and selecting managers and factory workers for different positions throughout the company in China.”
Chen “was a new Chinese colleague, a married 42-year-old father of two boys Chen had grown up and studied in the northern part of China He lived in Guangzhou with his wife, children, parents and brother. After completing his master’s in law and general business administration he worked for several companies and gained lots of experience in finance, accounting and public law He was a leading member in one of several table tennis clubs in Guangzhou and more of a team-player than someone who wanted to sit alone in his office all day and work on a task individually assigned to him.”
Peng, a 22-year-old from the countryside and the only son in his family, recently earned a bachelor’s degree in German from Guangzhou University He joined Sinotrading Ltd as a new colleague and also taught language courses for foreigners while working as a bartender in a nightclub.
Hoffmann, a bright 27-year-old German, joined Sinotrading Ltd as the third new member of the HR department, taking a paid internship as the assistant to the HR manager This marked her first visit to Asia, and she was thrilled to seize the opportunity to gain international HR experience With a master’s degree from a German university renowned for HR management research—especially in personnel selection, leadership, and evaluating the effectiveness of HR initiatives—she brings strong expertise to her new role.
1.7 The initial condition of the HR team in Sinotrading Ltd.
Li and the CEO developed the current HR structure and its formal procedures, while the new HR team was tasked with designing and implementing a comprehensive system for recruiting and selecting managers and factory workers across the company in China, including identifying the target positions for recruitment and standardizing processes to fill those roles efficiently.
Facing these factors, Stingl directed the new HR team to design a revamped recruiting and selection system aimed at accelerating talent acquisition and ensuring the right people fill the right roles quickly This system is intended to streamline the hiring process, enabling the company to identify and place suitable candidates in the right positions in a timely fashion.
2 Story developments: Story content and problem development
2.1 Overview of the HR members’ perspectives on the interview.
Recruiting at Sinotrading was conducted at the last minute and without a consistent method, with no formal selection procedure in place For months, Smith reminded Li to incorporate selection tools like those used by other companies, but Li declined the suggestion because of its cost.
Smith worries about time constraints and the absence of a clear method to select new employees, while Li argues that in China those formal procedures are unnecessary and a waste of time and money; he suggests that such hiring practices might be suitable in Canada, but not in China, effectively challenging Smith’s view that a detailed recruitment process is needed there.
The new procedures mentioned by:
Anne Hoffmann argues that hiring should be based on objective criteria, with a thorough job analysis to define the requirements for every position Recruitment must be fair, transparent, and performance-driven, so decisions hinge on how candidates perform Once suitable candidates are identified, contracts should be prepared and finalized, and hiring decisions should be evaluated based on the performance of the newly hired employees at Sinotrading Ltd.
Long Peng told Anne that the discussion was too theoretical and far from the real world, insisting they needed something practical for their purposes He argued that a practical approach was essential and claimed he could pick the right hire just by looking into a candidate’s face.
About Dong Chen: He thought that they should choose employees based on contract.
2.2 Procedure and working style of the company.
Hoffmann's initial reaction to Sinotrading Ltd.'s interview procedure was confusion He recognized a selection process that could rely on prior performance, experience in similar roles, or earned degrees, but hiring decisions were reportedly governed by a four-eyes principle and decided mainly through the interview In practice, this approach appeared to downplay previous work experience, placing greater weight on how candidates perform in the interview rather than on their credentials.
In Sinotrading, promotions were based on an employee’s loyalty to the boss rather than on performance, with the criteria kept covert and giving supervisors substantial, arbitrary authority This discretionary power enabled managers to ignore or overturn established rules, eroding formal processes and rewarding allegiance over merit.
Hoffmann’s case highlights an abnormal working style in China: her contract was drafted in English while the accompanying email was in German After two weeks in Guangzhou, she was presented with a new Chinese contract to sign—one that imposed additional obligations and tasks not outlined in the English version The new agreement included provisions that, in cases of non-fulfillment, would slash her salary by 50% and require her to repay half of the salary already received to the company.
MAIN ISSUES OF THE CASE STUDY
The team had to deal with a series of challenges to ensure the project's success And there are 5 main issues that appeared in this case study.
Sinotrading Ltd., a multinational company operating in multiple countries, currently lacks a pre-planned and effective recruitment and hiring process, making this the primary HR challenge it faces Without a structured talent acquisition strategy, the firm risks uncoordinated hiring, inconsistent candidate experiences, and a weak employer brand that deters future applicants If this approach persists, the company could struggle to attract and retain talented employees, undermining its competitiveness and potentially impacting financial performance The absence of professional hiring practices also signals an unprofessional image to potential candidates, reducing the pool of top talent over time Addressing recruitment planning and implementing a standardized hiring process is essential to safeguard Sinotrading's ability to compete globally and maintain a strong talent pipeline.
Effective hiring should be based on clearly defined job requirements and demonstrated performance rather than personal relations with a boss In a well-structured hiring process, a step-by-step plan helps ensure the highest quality hires Companies can reach a broad candidate pool through recruitment channels such as mass media and online platforms like Facebook, Twitter, LinkedIn, and TopCV, which are popular among job seekers, especially younger applicants These platforms enable candidates to contact recruiters directly and swiftly, increasing the number of applicants and broadening the pool of contenders A strategic recruitment approach leverages these channels to attract qualified candidates and streamline the hiring workflow.
Sinotrading Ltd faced a flawed recruitment approach where job advertisements were not aligned with the actual job requirements and job descriptions and job specifications were not used in the hiring process In this case study, the team suggested posting ads in a nearby restaurant or asking family members to reach more workers, but the CEO dismissed these ideas as unsustainable and argued for more creative, eye-catching ads to attract interest This focus on outward appearances neglected the crucial content of the roles, including the specific job positions, the characteristics an ideal employee should have, and the working benefits on offer Yet job descriptions and job specifications are always required in every hiring process, and by ignoring them in favor of sensationalized outreach, Sinotrading Ltd undermined the effectiveness of its recruitment strategy and failed to provide candidates with the information needed to assess fit and for the company to evaluate applicants.
2 A determination about undertaking-specific job requirements
At Sinotrading Ltd, a shortage of distribution of undertaking-specific job requirements is visible in the HR team The HR team consists of five members—Jiao Li, the HR Manager; John Smith; Long Peng; Anne Hoffmann; and Dong Chen Although an organized, task-specific distribution can boost productivity by giving each member time to conduct in-depth research and develop solutions for their duties, this approach has not been implemented in the HR department Instead, all members are directed to handle company recruitment, rather than their own assigned tasks, revealing a lack of a clear method of working.
Another distribution-related gap appears in the recruitment strategy section While competing firms post detailed job descriptions for every role on hiring platforms, Sinotrading Ltd has not published a complete set of position requirements The absence of clear, transparent criteria makes it harder to adjust the recruitment process and to justify how an employee meets defined expectations Clear, role-specific requirements also influence future employee growth and development Job seekers, aiming to find a role they can pursue and sustain, first assess the job requirements to gauge fit and potential career path.
A clear job requirement will create many advantages and the most remarkable is that people and the company can know each other well and don’t waste time in the future.
3 Procedures to evaluate these job demands
During the recruitment process, the HR team reveals a lack of a coherent recruitment strategy, with mounting pressure to hire for diverse roles Smith notes that there has been no task analysis or job analysis for the heterogeneous target positions, leaving unclear job requirements and fueling urgent hiring problems This gap stems from inexperience and a fragmented approach, and ultimately the CEO bears responsibility for providing clear direction The root cause is rushing to fill varied roles without structured recruitment planning, underscoring the need for formal task analysis and job analysis to align hiring with actual job requirements and improve recruitment outcomes.
With a large number of open positions, standard recruitment procedures were not consistently applied In a multinational company, the recruitment process is highly sophisticated and lengthy, requiring extensive planning and cross-regional coordination This complexity suggests the organization should have prepared for this scenario well before the current hiring season, implementing standardized practices and proactive workforce planning to streamline the hiring cycle.
Evaluating job demands is crucial to the development and sustained performance of a company Sinotrading Ltd currently lacks formal procedures to address these demands, which can leave employee-related issues unaddressed and risk disrupting the workflow By conducting a structured assessment of job demands, the organization can quickly identify and mitigate unwanted issues affecting staff, ensuring smoother operations and uninterrupted productivity.
Sinotrading Ltd has not conducted job analyses, despite their key role in assessing job demands A job analysis is an in-depth description of a job that breaks down tasks and outlines the expectations and demands placed on the employee, including working conditions, requirements, and the relevant aptitudes, attitudes, skills, temperaments, and physical, psychological, and cognitive demands These analyses inform recruiting, training, and human resources planning, and they are especially useful for returning to work after disability or illness, such as cancer, by providing the information needed to assess readiness and identify the job aspects that must be adjusted to enable a safe and effective return.
Companies should take proactive steps to support their employees because doing so delivers long‑term benefits for the business Assessing job demands and workload is essential for any organization, regardless of size, and it directly affects employee well‑being, engagement, and performance When job demands aren’t managed, workplace stress rises and can lead to serious issues such as strikes or high turnover, harming the company’s development and potentially damaging its reputation in the labor market Employees deserve solid benefits, and without them they may hesitate to apply or leave if already employed At Sinotrading Ltd, such concerns have been rare, but they remain a serious issue the company needs to address promptly to safeguard growth and its image.
Jiao Li, the Human Resources Manager, argued that the proposed procedures are unnecessary in China and might be appropriate in Canada, but would be a waste of time and money here This stance reveals a conservative, potentially outdated mindset that can influence colleagues’ attitudes during the hiring process, given her leadership role Such HR leadership views can shape recruitment decisions and the overall hiring culture within the organization.
4 Procedures for personnel selection and final decision - making
There are no personnel selection methods in practice within the organization, despite a range of recruitment tools that could be used in the hiring process, such as work sample tests, integrity tests, assessment centers, biographical and educational questionnaires, employee referrals, and cognitive ability tests; none of these techniques are employed The HR members offer one-sided views, similar to Peng and Jiao Li Ann argues that personnel selection should be based on objective, fair, and transparent criteria within a formal process, hiring according to contracts, and evaluating decisions by the performance of new hires at Sinotrading Ltd to establish the predictive and construct validity of the selection procedures Peng, however, finds such an approach too academic and disconnected from reality, preferring practical methods or hiring by impression Hoffmann notes that Jiao Li tends to jump to conclusions when she believes she has found the right employees; Li’s decisions are not grounded in exact tools, and her judgments are not accepted in the multinational workplace where she serves as Human Resources Manager.
At Sinotrading Ltd, HR manager Jiao Li conducts last-minute recruitment with final hiring decisions resting on interview outcomes rather than structured methods, a questionable approach for a multinational company, especially since Smith urged Li to adopt selection tools used by other firms but Li declined citing cost concerns, leaving the hiring process seemingly simple and prone to mistakes rooted in Li’s personal views on recruitment.
Hoffmann was really confused by the final decision-making in the recruitment process, because Sinotrading Ltd relies on a four-eye principle where the interviewer and interviewee discuss a few work-related issues, and then the team leader or CEO makes the overall judgment about the candidate This means hiring decisions depend largely on the interview rather than on prior performance, experience in similar jobs, or degrees The approach raises questions about the quality of selected employees, since at many other companies the interviewer would weigh past knowledge and experience to determine eligibility In contrast, Sinotrading Ltd applies a different method that does not reliably ensure the candidate's abilities.
5 The diversity within the team and cross-cultural problems in addition to the leadership behavior of its own CEO
Attempting to hire 85 personnel in just four weeks is impractical, especially for executive-level roles that require careful planning and expert selection In reality, large-scale recruitment typically extends beyond a month, and Sinotrading Ltd’s case illustrates the need for a detailed recruitment timeline A structured plan gives the HR team time to identify and secure high-quality candidates, whereas rushing to finish in four weeks risks compromising candidate quality and leaving the company with an unstable talent pipeline that could hinder future growth.
KEY CONCLUSIONS OF THE CASE STUDY
Question 1: What shortcomings do you see in the personnel selection system used in this company? Justify your answer
Personnel selection is a systematic process used to hire individuals, covering recruitment, selection, hiring, onboarding, and acculturation The core idea is to collect information about a candidate through a structured evaluation to determine whether they should be employed By understanding this process, organizations can attract applicants, assess qualifications, and make informed employment decisions while guiding new hires through onboarding and integration into the company culture.
According to the case study, Sinotrading Ltd's HR manager acknowledged a need to improve personnel selection, noting that recruitment was typically conducted at the last minute and without a consistent, standardized method This pattern underscored the urgency of implementing a structured hiring process, objective selection criteria, and timely decision-making to enhance the quality of hires and reduce turnover.
There was no formal recruitment process, and only a few team members knew which factors mattered in hiring Under the four-eyes principle, the final hiring decision rested with the team leader or the CEO, regardless of a candidate’s prior performance or educational qualifications.
One notable shortcoming in the recruitment process is the CEO's aggressive stance and volatile rhetoric, which put huge pressure on the team to hire for a wide range of positions Some members responded by simply hiring as many people as possible to satisfy the CEO’s demands, rather than pursuing quality In the case study, the manager rushed to conclusions about the right candidate, likely under CEO pressure, and routinely dismissed Smith’s and Hoffmann’s ideas, preferring a simpler approach and neglecting proper recruitment strategies The personnel selection process was planned in a perfunctory way, as Hoffmann proposed creating a mind map of the team's suggestions to establish objective hiring criteria, but Peng interrupted and ignored it due to the urgency of filling 85 vacancies The result is a quantity-over-method approach, with hiring driven by time pressure rather than a structured, criterion-based process, affecting the entire team except Smith.
One major shortcoming in the hiring process is reliance on subjective factors rather than performance-based evaluation, as demonstrated by the HR manager and two interviewers, Chen and Peng The HR manager prefers candidates who look friendly for face-to-face interviews and still gives final hiring preference to those who contributed little during the practical assessment, signaling a bias toward impression over merit Chen says he would not hire candidates with long hair, linking personal appearance to respect for the company, while Peng indicates a preference for applicants who frequently visit nightclubs None of them uses clear, objective criteria to assess candidates’ performance, resulting in a hiring process that is not fair, transparent, or objective.
Cultural differences are a major shortcoming that contributes to the inconsistency in developing a new selection tool Smith and Hoffmann share similar views and propose personnel decisions such as conducting job analyses and evaluation processes based on the performance of newly hired employees In contrast, HR managers Chen and Peng argue for a simpler selection procedure, contending that the methods proposed by Smith and Hoffmann are unnecessary and wasteful of time and money in China.
One major flaw in the HR process is hiring new employees who are unskilled and ill-suited for the HR team, as illustrated by the case study of Cheng, Peng, and Hoffmann Hoffmann stands out by offering constructive proposals rooted in personnel selection, drawing on a master’s degree from a university renowned for HR management In contrast, Peng and Cheng fail to provide helpful suggestions or resolve HR issues, highlighting the risks of underqualified hires in HR roles This comparison underscores the need for rigorous recruitment, specialized training, and evidence-based HR practices to improve HR decision-making and problem-solving outcomes.
There's a flaw in HR personnel selection: Hoffman has substantial HR experience and expertise, while other team members rely mainly on intuition, leading to conflicts and misunderstandings within the HR department.
Question 2: Which methods of personnel selection would you use to select managers and workers considering the validity of the specific personnel selection methods?
- Main task: 85 new middle managers and workers.
- The target positions for the 85 individuals included three finance managers, 10 production managers, two security guides, 40 workers for the factories, 15 secretaries for administrative positions and 10 interns from Europe.
- Analyse the personnel selection method of the HR team: o Selection methods that the HR team used:
There was no formal procedure.
Recruitment conducted at the last-minute and without any consistent method.
Using ads in universities and in city centers to find candidates; post ads for workers Asking family.
Promotion criteria were not transparent (based on the employee’s loyalty).
Using the four-eye principle.
No applicant pools or databases available.
Pick applicants by looking who look friendly.
Half-structured interview; position-specific criteria.
Personnel selection didn’t base on objective, measurable selection criteria (political attitude, ) and pick applicants by looking who look friendly.
Using the available interview questionnaires.
Only 2 methods: application/ resumé and interview.
Let the interviewees wait 20 mins in the factory. o Strengths and Weaknesses:
Posting recruitment ads in universities and city centers expands the pool of potential applicants, helping the company reach a larger, more diverse audience This approach is especially effective for attracting young, dynamic candidates such as freshers who are actively seeking new opportunities By leveraging campus and urban locations, the company can quickly build a strong talent pipeline and improve its chances of filling roles with energetic, capable newcomers.
Adopting a no-formal-procedure approach is a cost-saving recruitment method that reduces advertising expenses, requires minimal effort, and saves a lot of time Chen suggested asking family members to work for the company, and referrals from trusted sources tend to follow organizational rules to maintain social relationships.
Without clear procedures and under Stingl's pressure on the team, misunderstandings and conflicts emerged, resulting in an ineffective selection method The situation was compounded by cultural differences, and Hoffman, who had only a paid internship in China, struggled to align with the organization’s philosophy and cooperate effectively.
The company found it harder to find the right person for the right position because there aren't any appropriate ads for each position.
Using sentimental judgment may not be appropriate in some cases By that, we can have some tests so that we will have a right assessment of applicants.
- Our personnel selection method’s suggestion:
Define which positions to recruit:
White-collar Workers like Managers, Seniors, Mid-levels, Junior/Interns : using a complicated selection process and the method that is identification of knowledge, skills
Blue-collar Workers like Security guides, workers for the factories…: using a simple selection process and the method that is the number and quality of the applicant pool
Especially about the managers: Based on the importance of managers in the company, we will have a formal procedure method for selection It will be conducted through several steps (6 steps):
Some basic requirements: o Have excellent communication skills. o Good interpersonal skills. o Strong leadership qualities. o Strong work ethic.
An examination of the case reveals that team members come from diverse cultural backgrounds, while the organization's recruitment culture in China often relies on informal, unstructured practices This lack of formal recruitment procedures led Hoffman and Smith—who were educated in Western environments—to view the selection method as flawed The evidence suggests that thorough preparation and steadfast adherence to a defined plan can address the problem, and it emphasizes the role of well-prepared recruitment program materials in supporting effective hiring decisions.
Job analysis is a foundational procedure in any personnel selection process, aligning recruitment with the exact requirements of the role By defining job duties, responsibilities, qualifications, and competencies, and by crafting targeted interview questionnaires, it helps identify the right candidates and provides a clear picture of what the job requires for both the organization and applicants.
Job requirements defined through a thorough job analysis are essential for objective recruitment; without them, HR teams struggle to weed out unsuitable candidates and rely on subjective judgments and appearances, which creates two piles of CVs and leaves a disproportionately large interview-eligible pool.
Job description : Making the job description is to help the candidates find out the duties, responsibilities Also it will help the candidate know if they fit the positions.
Marketing methods combine traditional and digital strategies Besides posting posters and distributing leaflets in universities and in the city center, we can focus on digital channels and leverage social media to attract more applicants, widening reach and boosting engagement with prospective candidates online.
(announcements and ads on Mass media, especially Linkedln) With the help of technology, there are many ways to enhance communication between recruiters and candidates such as Linkedln, Weibo,
Or searching Job Hunting/ Recruitment Channels: Job Opportunities Group, YBOX, TopCV, in Viet Nam Moreover, we can utilize the social circle of employers: recommendations from family members, relatives, friends
Application forms: Provides some information such as contact information, work experience, educational backgrounds, It is a very usual way to help the HR team meet the minimum requirements of candidates.
Resumé and References: It is also a usual way to clarify their background and what they are telling in the application.