Recruitment at China Sunwah Bank: Guanxi Versus Talent Harvard Case Solution & Analysis

Question 1:

As the businesses are moving towards achieving profitability, therefore, hiring most appropriate candidates is the preference of the recruiters nowadays. Although the mentioned candidates have strong backing and the background is quite influential, however, they cannot justify themselves according to merit. Therefore, their selection is not justified, and they cannot make up into the last 48 candidates.

As a standard practice, Chun has received some gifts and gestures from some close friends and mates who in return asked for favors from Chun. However, the Guanxi culture has caused the Chinese banks to stay behind in transforming their culture and to become more competitive. Therefore, as a bank manager it is very important to assess the situation and grab the best available talent.

In order to stay competitive, the bank will have to seek the right candidate and therefore, it will have to provide full freedom to the HR department for selecting the most appropriate candidates. In this regard, he will have to keep all the personal relations aside and will not be under the influence of any powerful person.

The HR department must be given the authority to enhance their selection process and should only accommodate those candidates that are perfect for the organization. Although Chun might lose some of his close friends, however, this decision will be beneficial for his career and organization in the long run,

Question 2:

Chun should first evaluate the profile of his friend’s daughter and involve in the discussion with the HR department to assess the possibility of hiring the girl or not. However, the name has not appeared in the last 48 candidates, which means that the daughter of Chun’s friend is not competent enough to meet the criteria. In such situation, Chun should first view her profile and see that if he can recommend her to some other places or banks.

On the other hand, if the profile of his friend’s daughter is not up to the mark and is low on merit, Chun should immediately decide on returning the “hang bao” to his former classmate. However, this may disrupt their relation and will put Chun in a situation to trade off between career and personal relation. Chun should keep his calm and without any delay return the “hand bao” with a positive gesture and an apology.

Question 3:

If the banks in China started to adopt competitive culture and strive to become better and competitive, then the chances for Guanxi’s survival in the culture are very low. Although this method has been a tradition for decades and is considered part of their culture, however, with modern world adoption and intense focus towards economic benefits, it has forced many organizations to implement strong organizational cultures. With these emerging trends, the likelihood of Guanxi sustaining its hold in the Chinese culture is not very strong and more likely to vanish in coming few years.

Question 4:

Hiring the candidates of Electric Power Director will allow Chun to get into strong relationships with the director that will be very effective for the bank as well. Furthermore, the bank can get strong backing from the Chinese Communist Party, which means that the bank will be under political influence as well. Besides that, the hiring of candidates will the Chun the benefit of obtaining accounts of the people working in Electric Power by leveraging the relationship with the Director. This move will result in higher benefits in terms of monetary value and it will strengthen the bank’s hold in the market.

On the other hand, the political influence can also play its role in establishing the banks as one of the strongest in the country and can provide access to many major projects and benefits. However, the disadvantage of not hiring the candidate will be in terms of loss of all these opportunities that can make the bank a reputed and differentiated it from its competitors. On the other hand, Chun has no personal relationship with the Director; therefore, no significant loss will occur to him......................

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