HIRING A STORE DIRECTOR AT BAG GROCERS, INC.

Selection decisions require the collection of job-related information and a decision based on a prediction of the future job performance of a job candidate. The data collected can include test scores, previous performance data, interview ratings, personality inventories, and other information. The purpose of this exercise is to give you an understanding of the process involved in making a final hiring recommendation based on data collected during the selection process. You are to review each candidate's credentials for the Store Director position at BAG Grocers, Inc. in New Orleans and make a recommendation as to who should be selected for the position.

Review the background information and the selection data collected (See Exhibits that follow). Assume the following: You are the vice president of HR. You are to write a report (type a 1-page memo summarizing your recommendation followed by 2 to 4 pages of supporting information) which includes the following:

0. A rank ordering of the four choices for the New Orleans Store Director job.
1. An in-depth discussion of how this rank ordering was reached (a rationale for why some candidates are ranked higher than others).
2. A discussion of how the selection process for hiring a Store Director should be changed in the future (e.g., additional selection devices to use, additional information to gather, sources to drop or change). This report will be sent to the President of BAG Grocers, Inc.

BACKGROUND INFORMATION

BAG is a large grocery chain operating in the southwestern U.S. It has its headquarters in Dallas, Texas. The firm employs 8800 persons. The chain has several stores in each of the following cities: Dallas, TX; Houston, TX; Tulsa, OK; Oklahoma City, OK; Little Rock, AK; and New Orleans, LA.

Recently, the company has been trying to hire a new Store Director for store # 98, located in New Orleans (see the job description summary in Exhibit 1). Although BAG has experienced slightly above average growth and profits compared to its competitors, the New Orleans stores have all been a trouble spot. Over the last 3 years, customer complaints have been on the rise, and the stores as a whole have been having problems meeting sales goals. There has also been a higher degree of turnover in these stores than in other cities. The most recent Store Director for store # 98 quit after just 8 months detailing impossible working conditions and work-related stress as the main reasons for leaving.

Because of the problems in the New Orleans stores in general, BAG is looking for a Store Director to go in and turn around store # 98. If the Store Director is successful, the same techniques will be used in the other New Orleans area stores. This will be accomplished by promoting the new Store Director to the Regional Director for the New Orleans area. BAG has gone to great expense in the selection process for this position. The information gleaned from the selection tools is provided in Exhibits 3 through 6. After an impressive effort in recruitment and screening, the company has created a short list of four names. Biographical information on each of the candidates is included in Exhibit 2.

BAG, Inc. has typically favored a promotion from within philosophy, as can be recognized by its extensive Leadership Development Program, but one of the top Regional Directors was hired from outside the company into a Store Director's position.

EXHIBIT 1 -- SUMMARY OF THE STORE DIRECTOR'S JOB DESCRIPTION AND SPECIFICATION

The Store Director is responsible for developing and coaching partners to higher levels of performance that lead to a final goal of providing great customer service and quality products. The Director must also maximize profits, while minimizing fixed and variable cost and maintaining store standard, policies and procedures. Job functions considered critical to the Store Director's position include: maintaining good customer relations; maintaining good relations with department managers and their employees (partners); and meeting store objectives in the areas of sales, customer service, budgeting, and purchasing. The position requires a Bachelor's degree in Business or completion of School of Retail Leadership courses. The position also requires an extensive background of food retailing and store operation. Skills required for the job include: ability to use Microsoft Work, Excel, Access, PowerPoint, and E-mail; strong interpersonal and communication skills; and the ability to work in a fast-paced, stressful, changing environment.

EXHIBIT 2 -- BIOGRAPHICAL DATA

1. Jerry Barnes. Age 35. Education: B.B.A., Unversity of Texas; M.B.A. (human resource management) Arizona State Univeristy. Barnes is a Store Director for one of BAG's competitors. Barnes has held the Store Director job for the past 3 years and has been with the competitor for 10 years.
2. Anthony Cecelli. Age: 62. Education: high school graduate, completed the School of Retail Leadership courses nine years ago. Cecelli is an assistant Store Manager in Dallas. He has been with BAG Inc. for 30 years. He has been assistant Store Director for the last 8 years. He has had several health-related problems over the last several years, but appears to have recovered. Eight years ago, he turned down a Store Director position due to family problems.
3. Karen Stewart. Age: 37. Education: B.B.A., Texas A&M University, M.B.A. (management emphasis) Southern Methodist University. Stewart is currently the Store Director of one of BAG Inc.'s stores in the Oklahoma City area. She desires a lateral transfer for family related reasons. She has been with BAG Inc. for 8 years and Store Director in Oklahoma City for 2 years.
4. Charles Stevenson. Age: 47. Education: B.B.A., Harvard; M.B.A., Harvard. Stevenson is currently Assistant Store Director at one of BAG Inc's Little Rock Stores. He has been with BAG Inc. for 12 years; for the last 5 years has been an Assistant Store Director.

EXHIBIT 3 -- PERSONALITY PROFILES

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EXHIBIT 4 -- HANDWRITING ANALYSIS

The handwriting analyst (graphologist) placed the store director candidates into percentiles describing their probability of success in the Store Director's job (100th percentile being an outstanding candidate, and 0th percentile being an completely inadequate candidate). The analysis was based on a comparison of each candidate's personality with the personality needed to successfully turn Store # 98 around.

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EXHIBIT 5 - INTERVIEW RATINGS

The Human Resource Department trained interviewers. As a part of the training, interviewers conducted mock interviews and were scored on their skills and rating abilities. Interviews ranged between one and two hours. The interview ratings were made on a 5-point scale (from 1 for "poor" to 5 for "excellent"). All interviews were semi-structured.

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EXHIBIT 6 -- PERFORMANCE RATINGS, AND WORK SAMPLE SCORES

The performance ratings are based on the most recent performance appraisal at BAG, Inc., therefore the external candidate does not have a performance rating. The appraisals are based on a 1 to 5 scale with 1 indicating poor performance and 5 indicating excellent performance.

The work sample score is a composite score based on the results of an in-basket exercise, a budget analysis exercise, a customer complaint role-play, and a mock Department Manager's meeting. Individuals scoring above 20 are considered "good management material".

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