The Application of the 80-20 Rule in Candidate Selection Practices at Lloyds Banking Group

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

Signed __________________ Date _________________

EXECUTIVE SUMMARY

This research explores the concept of recruitment and selection process. It provides various approaches in context of recruitment, as well as selection practices that have been carried by the organisations in order to attract and select most applicable and efficient workforce. Furthermore, it analyses the merger case of Lloyd bank and Halifax Bank of Scotland (HBOS) and the recruitments practiced by the bank previously. In addition to this, the research also explores the concept of 80-20 rule presented by Pareto and its application in selection practices.

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

EXECUTIVE SUMMARYiv

CHAPTER 1: INTRODUCTION1

1.1Organisational Background1

1.2Aims and Objectives2

1.3Scope and Boundaries3

CHAPTER 2: LITERATURE REVIEW4

2.1Human Resource Management4

2.2Recruitment and Selection4

2.3Recruitment8

2.4Sources9

2.5Recruiting Workforce11

2.6The Selection Process13

2.7Job Matching14

2.8Pareto's Principle - 80/20 Rule15

2.9Application of 80-20 Rule in Recruitment and Selection Process16

REFERENCES17

CHAPTER 1: INTRODUCTION

Organisational Background

Plans for the merger between Lloyds TSB and Halifax Bank of Scotland (HBOS) were unveiled to shareholders on 3 November 2009 they revealed that the group expects to save almost £1.5 billion per year by 2011, mainly by slashing IT costs, economies-of-scale savings from integration projects and cutting jobs, with some press reports suggesting 20,000 positions could go, largely from the retail division. The merger, which will create the UK's biggest mortgage lender with a 29 per cent of the market and a similar number of current account holders, gained approval from the UK Government agreeing to set aside anti-monopoly laws in the national interest of ensuring the survival of HBOS from the financial turmoil sweeping the globe. The two banks together have 140,000 employees, 2,800 branches and 38 million customers

This merger would look at integrating systems, processes and procedures and would result in job losses; therefore there was a requirement to utilise a group-wide selection approach using desk top assessment based on the 80/20 rule.

This selection process is led by each Division and is based on a desktop assessment process using the agreed scoring mechanisms. In the case of a 'tie' on a selection decision, two business critical skills are identified as having higher priority and used to select the preferred candidate. Interviews may be used if appropriate, either to finalise the desktop assessment process or to ...