Chapter 1

Introduction

1.1 Background of the Study

Employing the right people for a business is the most important part of the organization.
It is essential to have a good recruitment process to attract the right kind of employees
for business needs. Successful recruitment is a direct reflection of the validity and
professionalism of a business. The recruitment process should be cost effective as Well
as time effective.

A good recruitment planning and process can minimize the time involved in the
searching, interviewing, hiring and training. It can streamline these processes and make
your search for viable candidates much more efficient. It is very important to build a
positive image to its customers, peers and competitors.

The main reason for the great interest in this field is They believe it is most important
part of an organization, employing the right people for their business. That’s why Kia
took some strategic steps as part of its recruitment planning. Which results in effective
and efficient selection process for the HR and recruiters.

This case on recruiting at Kia is different because its objectives and analysis are
different from others. Kia Motors is in a very unique position among other car brands.
Kia was in need of large numbers of employees as economic conditions became more
demanding, their strategic recruitment planning and recruiting actions resulted in the
hiring of more than 500 new employees within six months. During the rest of the year,
an additional 1,200 workers Were hired, primarily for the second shift, and more Were
hired later.

1.2 Overview of Kia Motors

Kia Motors Corporation, commonly known as Kia Motors, headquartered in Seoul, is

South Korea's second-largest automobile manufacturer, following the Hyundai Motor
Company, with sales of over 3.3 million vehicles in 2015. As of December 2015, the
Kia Motor Corporation is minority owned by Hyundai, which owns a 33.88% stake

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valued at just over US$6 billion. Kia in turn is a minority owner of more than twenty
Hyundai subsidiaries ranging from 4.9% up to 45.37%, totaling more than US$8.3
billion. [Wikipedia]

1.2.1 About Kia

Kia Motors Corporation was founded in May 1944 and is Korea’s oldest manufacturer
of motor vehicles. From humble origins making bicycles and motorcycles, Kia has
grown – as part of the dynamic, global Hyundai-Kia Automotive Group – to become
the world’s fifth largest vehicle manufacturer.

Today, Kia produces more than 1.4 million vehicles a year at 14 manufacturing and
assembly operations in eight countries. These vehicles are sold and serviced through a
network of more than 3,000 distributors and dealers covering 172 countries. The
Corporation has more than 40,000 employees and annual revenues of more than US$17
billion.

In its ‘home ‘country of South Korea, Kia operates three major vehicle assembly plants
– the Hwasung, Sohari and Kwangju facilities – plus a world-class research and
development center employing 8,000 technicians at Namyang and a dedicated
environmental R&D center. The Eco-Technology Research Institute, near Seoul, is
working on hydrogen fuel-cell vehicles for the future as Well as state-of-the-art end-of-
life vehicle recycling technologies and processes. Kia spends 6% of its annual revenues
on R&D and also runs research centers in the USA, Japan and Germany. [Kia Motors]

1.2.2 Corporate Philosophy

A business management philosophy outlines a company's reason for being while
serving as a fundamental guideline that shapes the mindset and behavior of employees.
The following three key phrases sum up Kia’s management philosophy: full
accountability, realizing potential, and practicing humanity. These key values are
encapsulated in a single mantra: 'Building a new future and realizing humanity's dreams
by thinking creatively and tackling challenges head on. [Kia Motors]

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1.2.3 History of Kia
Kia was founded in December 1944 as Kyungsung Precision Industry, a manufacturer
of steel tubing and bicycle parts, eventually producing Korea's first domestic bicycle,
the Samchully, in 1951.[1] In 1952, Kyungsung Precision Industry changed its name to
Kia Industries, and later built Honda-licensed small motorcycles (starting in 1957),
Mazda-licensed trucks (1962) and cars (1974). The company opened its first integrated
automotive assembly plant in 1973, the Sohari Plant. Kia built the small Brisa range of
cars until 1981, when production came to an end after the new military dictator Chun
Doo-hwan enforced industry consolidation. This forced Kia to give up passenger cars
and focus entirely on light trucks. Prior to the forced 1981 shutdown, Kia rounded out
its passenger car lineup with two other foreign models assembled under license: the Fiat
132 and the Peugeot 604. Starting in 1986 (when only 26 cars Were manufactured,
followed by over 95,000 the next year), Kia rejoined the automobile industry in
partnership with Ford. Kia produced several Mazda-derived vehicles for both domestic
sales in South Korea and for export into other countries. These models included the Kia
Pride, based on the Mazda 121 and the Avella, which Were sold in North America and
Australasia as the Ford Festiva and Ford Aspire. In 1992, Kia Motors America was
incorporated in the United States. The first Kia-branded vehicles in the United States
Were sold from four dealerships in Portland, Oregon, in February 1994. Since then, Kia
methodically expanded one region at a time. Dealers in 1994 sold the Sephia; and a few
years later, the United States segment expanded their line with the addition of the
Sportage. Over one hundred Kia dealerships existed across thirty states by 1995, selling
a record 24,740 automobiles.

However, during the Asian financial crisis, Kia declared bankruptcy in 1997; and in
1998 reached an agreement with Hyundai Motor Company to diversify by exchanging
ownership between both companies. Hyundai Motor Company acquired 51% of the
company, outbidding Ford Motor Company which had owned an interest in Kia Motors
since 1986. After subsequent divestments, Hyundai Motor Company owns about one
third of Kia Motor Corporation. While Hyundai Motor Company remains Kia's largest
stakeholder, Kia Motor Company also retains ownership in some 22 different Hyundai
Motor Company subsidiaries. Since 2005, Kia has focused on the European market and
has identified design as its "core future growth engine"—leading to the hiring of Peter
Schreyer in 2006 as chief design officer and his subsequent creation of a new corporate

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grille known as the 'Tiger Nose'. In October 2006, Kia Motors America broke ground
for Kia Motors Manufacturing Georgia in West Point, Georgia, representing a US$1
billion investment for the company. Kia Motors Manufacturing Georgia opened in
February 2010, after Kia recorded its 15th consecutive year of increased U.S. market
share. In August 2014, the company received international attention when Pope Francis
of the Catholic Church rode in one of their compact cars, the Kia Soul, during a five-
day visit to South Korea. The Kia Soul drew bigger attention than two other vehicles
used by the Pope, their Kia Carnival and Hyundai's Santa Fe, because it appeared in the
high-profile Welcoming ceremony of his arrival at the Seoul Airport on August 14. In
2016, Kia Motors model reliability was ranked first in the United States by J.D. Power
and Associates, becoming the first non-luxury automaker since 1989 to top that list.
[Wikipedia]

1.2.4 Corporate Vision

 Together for a better future: In 2011, Hyundai Motor Group established a
new corporate vision: 'Respecting people and practicing environmental
management to maximize value creation and pursue balanced and shared
growth with stakeholders.' All subsidiaries will cooperate to fulfill this vision
and turn Hyundai Motor Group into a top-tier global automotive group that
provides customers with new value. With the greater value they create by
pooling our competencies, they will strengthen the soundness of partner firms
and local communities while contributing to the sustainability of humankind.

 Lifetime partner in automobiles and beyond: Under the Group-level

corporate vision are detailed vision statements for each key business area. For
the automobile business, the vision statement is 'Providing a new space that
makes life more convenient and enjoyable by realizing superlative mobility
based on innovative people-oriented, eco-friendly technologies and
comprehensive services. Kia Motors will offer products and services that befit
this vision of turning cars from mere modes of transport into new lifestyle
spaces.

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1.2.5 Core Values
The core values comprise the code of conduct for employees and the organization at
large. They also represent the corporate culture They strive for and the promise They
make to ourselves and stakeholders. They become one by sharing the same values and
applying them consistently in our decision-making processes. Kia Motors will tackle
challenges head on through mutual cooperation and respect while fulfilling our pledges
and embracing talent and diversity to build a distinct corporate culture.

 Customer first: They promote a customer- driven corporate culture by

providing the best quality and impeccable service with all values centered on
our customers.
 Challenges: They refuse to be complacent, embrace every opportunity for
greater challenge, and are confident in achieving our goals with unwavering
passion and ingenious thinking.
 Communication & collaboration: They create synergy through a sense of
"togetherness " that is fostered by mutual communication and cooperation
within the company and with our business partners.
 People: They believe the future of our organization lies in the hearts and
capabilities of individual members, and will help them develop their potential
by creating a corporate culture that respects talent.
 Globality: They respect the diversity of cultures and customs, aspire to be the
world's best at what They do, and strive to become a respected global corporate
citizen.

1.3 Recruiting at Kia

The main reason for the great interest in recruiting at Kia Motors is we believe that
recruiting is one of the most important part of an organization, employing the right
people for their business. Kia Motors took some strategic steps as part of its recruitment
planning. Which results in effective and efficient selection process for the HR and
recruiters.

The case statement is here:

As economic conditions became more demanding for some employers, other firms
continued to recruit people for jobs. One firm, Kia Motors America, added a large

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number of jobs at one of its newer facilities. As a subsidiary of a South Korean
corporation, Kia Motors America added tons of equipment at its West Point, Georgia,
plant, so that ultimately about 300,000 vehicles would be produced annually.

As the firm sought recruits to fill its Georgia plant workforce, more than 40,000
individuals applied for the jobs, the bulk of which Were production and maintenance
positions. However, the need for people in a variety of other occupations, including air-
conditioning service people, cafeteria workers, and medical staff, added to the depth
and scope of Kia’s recruiting. A limited time frame for applications was set by Kia as
part of its recruitment planning.

In the recruiting process, a variety of regional and area sources Were contacted as part
of the Kia broad publicity and inclusive efforts in the area. Randy Jackson, HR Director,
spent a month visiting colleges and churches, appearing on radio and television shows,
and using other means to market Kia’s recruiting and employment efforts. All of these
activities Were done to inform applicants about the numerous jobs at Kia and the
monthlong time frame for application.

To make its recruiting system effective in screening the large number of applicants, Kia
established an online-only application process on a special Website. As part of its
recruiting efforts, Kia and a Georgia Department of Labor agency worked together. One
of the agency activities was to make computers available at a local technical college,
libraries, and other locations for those persons without home-based Internet. Having the
online system allowed Kia’s HR staff to move quickly to identify those applicants who
matched available jobs. The use of this system by HR recruiters and managers doing
the hiring made the selection process more efficient.

To aid in the selection of employees, recruiting software was used to sort applicants
into electronic “buckets,” divided by work experiences and education. Then an eight-
step process was established to let applicants obtain a realistic job preview of working
at Kia. These recruiting actions resulted in the hiring of more than 500 new employees
within six months. During the rest of the year, an additional 1,200 workers Were hired,
primarily for the second shift, and more Were hired later.

Although smaller employers might not use such an extensive recruiting process, the Kia
process illustrates the kinds of recruiting planning, activities, Internet linkages, and

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other means that can be used by both large and small employers doing recruiting. The
long-term success of Kia’s efforts to staff its Georgia operation demonstrates ways in
which HR can use both time- and cost-effective recruiting to hire qualified individuals.

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References

KIA, 2019. Core Values: Kia Motors. [Online] Available at:

https://www.kia.com/mt/about-kia/kia-company/philosophy/ [Accessed 01 April
2019].

KIA, 2019. Corporate philosophy: Kia Motors. [Online] Available at:

https://www.kia.com/mt/about-kia/kia-company/philosophy/ [Accessed 01 April
2019].

KIA, 2019. Kia Motors Corporation: Kia Motors. [Online] Available at:
https://www.kia.com/mt/about-kia/kia-company/ [Accessed 01 April 2019].

KIA, 2019. Vision: Kia Motors. [Online] Available at:

https://www.kia.com/mt/about-kia/kia-company/philosophy/ [Accessed 01 April
2019].

Sherzay, Z., 2015. The Importance of a Strong Recruitment Process. [Online]

Available at: http://www.lucaspsg.ca/the-importance-of-a-strong-recruitment-process/
[Accessed 02 April 2019].

Wikipedia, 2019. History: Kia Motors. [Online] Available at:

https://en.wikipedia.org/wiki/Kia_Motors [Accessed 02 April 2019].

Wikipedia, 2019. Kia Motors: Wikipedia. [Online] Available at:

https://en.wikipedia.org/wiki/Kia_Motors [Accessed 02 April 2019].

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6.2 Conclusion

Though freelancing not a new in Bangladesh, it became popular in the recent few years.
Becoming popular for four to five years, this sector is enough strong now to draw the
attention of creative and especially jobless people and the sector also received
considerable cooperation from the government of Bangladesh as Well. Now
government recognize freelancing sector as another potential business sector in the
economy. And taking enough initiatives to increase manpower in freelancing to reduce
unemployment problem. Not only the government but also the freelancers are
practicing their responsibility to the economy by creating new freelancers and earning
foreign remittance. But still now freelancing career has some hindrances to overcome.
They hope government will take proper action to make the internet available and in
affordable price, to make the payment gateway easier to bring money from foreign
country, and will take proper action against the fraud. Freelancing is highly contributing
to reduce unemployment problem and They hope in near future freelancing will be first
remittance earning sector of Bangladesh.