A further study of the problems shows that Zuko was involved in hiring a large number of internal employees. The employees were promoted to higher positions but lacked the fresh talent and knowledge. The resultant factor was a massive slump in goodwill and productivity of Zuko over last few years, thereby enabling competitors to gain greater access to and utilize the fresh set of candidates available for their best interests. With the decline in goodwill and rise in the number of competitors present in the software industry, the entire process of recruitment and selection has become difficult for once an IT giant, Zuko. Zuko has significantly lost the ability to draw new candidates at the same pace as before. Also, the company had to unnecessarily witness immense outflow of resources in form of paying the internal employees for referrals provided. All the complications undeniably led to shrinkage in productivity and augmented the organizational cost while recruiting new candidates. Zuko wishes to conduct the process of external recruitment and selection so as to rebuild the goodwill. Through commitment towards the technology, people, and system, Zuko wants to provide the value needed to all its stakeholders and customers. The purpose of this study is to provide an accurate understanding of the effects of external recruitment and selection on productivity and organizational effectiveness of Zuko. The subject matter is found to be considered appropriate for presenting suggestions and insights related to the improvement of certain dimensions related to the employee acquisition program of Zuko. The study has the ability to refine understanding of the company’s HR managers about the need to invest in the recruitment and selection of external candidates as they are the source of fresh knowledge that can add to the organizational productivity. The investigation on reasons for which the process of recruitment and selection had faced a significant number of hiccups is necessary so as to frame proper solutions, thereby eliminating issues faced in employee acquisition. Understanding the employees’ opinions is vital for the HR managers for formulating plans.
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