CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Recruitment and selection are the process of attracting individuals on a timely basis, in sufficient
numbers and with appropriate qualifications (walker, 2009). Some of the process in the selection
include screening applications and resumes, testing and reviewing work samples, interviewing,
checking references and background. Organizations use these processes to increase the
likelihood of hiring individuals who possess the right skills and ability to the successful at their
jobs (walker,2009).
Recruitment and selection is a vital process for every successful organization because
having the right staff improves and sustains organizational performance. The impact of an
organization’s selection system influence bottom line business outcomes, such as productivity
and financial performance a dream for any organization.
In the operation of any organization recruitment and selection is the major function of the
human resource department and recruitment process in the first step towards creating the
competitive strength of organization. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many resources
and time. Accordingly, recruiting and selection are conceived as the process by which
organization solicit, conduct and interest potentials appointees and then establish whether it
would be appropriate to appoint any of them, sisson (1994). Human resources management aims
to ensure that the organization obtains and retains the skilled, committed and well-motivated
work-force it needs.
Recruitment and selection are the two phases of the employment process but there is a
difference between the two. The recruitment is the process of searching the candidate for
employment and stimulating the to apply for jobs in the organization while selection involves the
series of steps by which the candidates are screened for choosing the most suitable persons for
vacant posts.
Similarly, the basic purpose of recruitments is to create a talent pool of candidates to
enable the selection of best candidate for the organization, by attracting more and more
employees to apply in the organization whereas the basic purpose of selection is to choose the
right candidate to fill the various position in the organization. The recruitment process is the
immediately followed by the selection process, which is the final interviews and the decision
making, conveying the decision and the appointment formalities.
Recruiting is screen as a “positive process of generating a poll of candidates by reaching
the right audience, suitable to fill the vacancy” (Leopold 2002), on the other hand, he stated that
once these candidates are identified, the process of selecting appropriate employees for
employment can begin. This means collecting, measuring and evaluating information about
candidates’ qualifications for specified positions.
Selection therefore, is a process that involves the series of steps by which the candidates
are screened for choosing the most suitable persons for vacant posts.
The more effectively organizations recruit and select candidates the more likely they are to hire
and retain satisfied employees. In addition, the effectiveness of an organization’s selection
system can influence bottom-line business outcomes, such as productivity and financial
performance. Hence, investing in the development of a comprehensive and valid selection
system is money well spent. Recruitment and selection are vital process for a successful
organization, having the right staff can improve and sustain organizational performance (Petts.
1997).
The basic purpose of recruitments and selection is to create a talent pool of candidates to enable
the selection of best candidates for the organization, by attracting more and more employees to
apply in the organization as well as to choose the right candidate to fill the various positions in
the organization which process must be based on merit or technical know-how. With many
benefits of proper recruitment process, it will essential to develop a performance to examine the
effect of recruitment and selection, hence study.
1.2 Statement of The Problem
in recent years, there has been increase in the rate of business failure, closure and at best
low productivity. It was due to low level of organizational performance. To explain the situation,
various factors have been looked into including competitive strategy in an organization. Despite
the conflict between the stakeholders and the employees the personnel have crucial roles to play
in ensuring the resolution of impending conflicts between the management and the employees
for the achievement of goals and objectives of the organization.
Unfortunately, some organizations pay more attention on factors like money incentives
and or physiological factors without giving much attention to the recruitment and selection of
work force. Therefore, the need to ascertain the impact of R&S in organization performance
1.3 Objective of the study
The main objectives of this study are to examine the impact, the study also has the following
objectives:
1. Examine the recruitment and selection policy and process
2. To examine the challenges (if any) conformity R&C in the organization.
1.4 Research Questions.
1. Is there any form of recruitment and selection policy in the organization?
2. What is the various selection in the organization?
3. Is there any effect of recruitment and selection on organization performance?
1.5 Research Hypothesis
The research hypothesis are: -
Ho: - Recruitment and selection have no significant implicit on organization performance
Ho: -recruitment and selection does not significantly enhance getting competent staff
Ho: - standardized R&S policy has no effect on quality of personnel employed in an
organization.
1.6 significance of the study
the significance of the study can’t be over emphasized. It is believed that apart from the
organization and the institution under review, this study will go a long way in helping
organization in knowing the importance of effective recruitment and selection as a mechanism
for improving organization performance. It will also give an insight into the right step to follow
as to achieving the best place as well as the productivity capacity of individual when serve as a
guideline to management students who wish to carry pout this nature.
It is also meant to be helpful to management and staff of United Bank for Africa (UBA)
Nigeria in the course of its operation. Essentially, this research is to guide the management of
any organization on the need for effective recruitment and selection in order to achieve the
desired goals and objectives.
1.7 Scope of the study
This research how the impact of effective recruitment and selection will help in improving
organizational performance. This research was carried out as a case study of United Bank for
Africa (UBA) with a view to finding out their general policies on staff recruitment and selection
and how it has impacted its performance. In making this research reliable and result oriented,
people, journals, textbooks, expert on the field and the internet should be consulted.
1.8 Limitation of the study
The major limitation of this study revolves round the policies in recruitment and selection of
personnel in the banking industry. Time to carry out the research work is equally a limitation to
the study as short period was given to complete the research work.
1.9 definition of key terms
To enhance the easy and better comprehension and understanding, the following key
terminologies which run through the length and breadth of this research will be briefly defined.
Effective: - means the ability to bring about the intended result. It is the achievement of
desired objectives.
Recruitment: - it is the process of searching for prospective employees and stimulating
them to apply for jobs in the organization.
Selection: - it is defined as the process by which business chooses the most suitable
person for vacant position from the list of applicants.
Human resources: - referred to the people, skills and ability seen as something important
in an organization, the individual work-force.
Organization: - this is been referred to as a group of people who form a business club
together to achieve a particular purpose and objectives.
Institution: - it means a large important organization that has a particular purpose e.g
University.
Management: - it refers to the process by which managers created, maintain and operate
purposeful organization through coordinated human effort.
Business: - this refers to any legal economic activities that involves the production or
manufacturing of goods and services with the satisfaction of consumers or society in
order to make profit.
Development: - this is a process in which the individual and society interact with their
physical, biological, and interpersonal prospective and transforming them to their benefit
and also for humanity.
Programme: - this refers to as future plan, events or activities as well as dissemination of
ideas or belief of an event to a particular society. Also, it is a plan of things that will be
done or include in the development of something.
Productivity: - it is the rate at which a worker, a company, business enterprise or a
country produces goods, and the amount produced, compared with how much time, work
and money is needed to produce them.
CHAPTER TWO
2.1 Conceptual Review
2.1.1 the concept of recruitment and selection.
According to Costello (2006) recruitment is described as the set of activities and process used to
legally obtain a sufficient number of qualified people at the right place and time so that the
people and the organization can select each other in their non best short- and long-term interests.
In other words, the recruitment process provides the organization with a pool of potentially
qualified job candidates from which judicious selection can be made to fill vacancies. Successful
recruitment begins with proper employment planning and forecasting. In this phase of the staff
process, an organization formulates plans to fill or eliminates future jobs openings based on an
analysis of future needs, the talent available within and outside of the organization and the
current and anticipated resources that can be expand to attract and retain such talent.
Also related to the process are the strategies an organization is prepared to employ in
order to identify and select the best candidates for it developing pool of human resources,
organization seeking recruit for base-level entry positions often require minimum qualifications
and experiences. At the middle levels, senior administrative, technical and junior executive
positions are often filled internally. The push for scarce, high quality talent often recruited from
external sources, has usually been at the senior executive levels. Most organization utilize both
mechanisms to effect recruitment to all levels. Jovanovic (2004) said recruitment is a process of
attracting a pool of high-quality applicants so as to select the best among them. For this reason,
top performing companies devoted considerable resources and energy to creating high quality
selection systems.
Recruitment and selection process are important practices for human resource
management and are crucial in affecting organizational success Jovanovic (2004) said,
recruitment and selection are vital functions of human management for any type of business
organization. These are terms that refers to the process of attracting and choosing candidates for
employment. The quality of the human resource of the firm has heavily depends on the effectives
of these two functions. Recruiting and selecting the wrong candidates who are not capable come
with a huge negative cost which business cannot afford. Thus, the overall aim of recruitment and
selection within the organization is to obtain the number and quality of employees that are
required to satisfy the strategic objectives of the organization at minimal cost Ofori & Artyeetey
(2011)
As explain by Opatha (2010) recruitment is the process finding and attracting suitable
qualified people to apply for job vacancies in the organization. It is a set of activities an
organization uses to attract job candidates who have needed abilities and attitudes.
Recruitment of candidates is the function proceeding the selection, which helps create a
pool of prospective employees for the organization so the management can select the right
candidates for the right job from this pool. The recruitment process is immediately followed by
the selection process i.e. the final interview and the decision making. Conveying the decision and
the appointment formalities, Wanous J.P (2009).
Due to the fact that organizations are always fortified by information technology to be
more competitive, it is natural to also consider utilizing this technology to re-organize that
traditional recruitment and selection process through proper decision techniques, with that both
the effectives and the efficiency of the process can be increased and the quality of the
recruitment and selection decision improved.
Additionally, recruitment is a positive process i.e. encouraging more and more employees
to apply whereas selection is a negative process as it involves rejection of the unsuitable
candidates. Recruitment also, is concerned with tapping the sources of human resources whereas
selection is concerned with selection the most suitable through various interviews and tests, and
finally, there is no contract of recruitment established in recruitment whereas selection results in
a contract of service between the employer and the selected employee.
Recruitment is the process of identifying and attracting a group of potential candidates
from within and outside the organization to evaluate for employment. Once these candidates are
identified, the process of selecting appropriate employees from employment can begin. This
means collecting, measuring and evaluating information about candidates’ qualifications for
specified positions. Organization use these practices to increase the likelihood of hiring
individuals who have the right skills and abilities to be successful in the target job, Leopold
(2002)
2.1.2 The Recruitment and Selection Process.
A number of recent studies have suggested that some recruitment processes are more
effective than others in terms of the value of employees recruited.
Miyake (2002) indicate that while advertising is usual for job vacancies, applicants were
sometimes recruited by word of mouth, through existing employees. Besides being cheaper, the
“grapevine” finds employees who stay longer (low voluntary turnover) and who are less likely to
be dismissed (low voluntary turnover). People recruited by word of mouth stay longer because
the have a clearer idea of what the job really involves. Miyake (2002) review five studies in
which average labor turnover of those recruited by advertising was 51 percent. The labor
turnover for spontaneous applicants was 37 percent and turnover for applicants recommended by
existing employees was 30 percent. One hypothesis proposed to account for this was the “better
information” hypothesis. It was argued that people who were suggested by other employees were
better and more realistically informed about the job than those who applied through newspapers
and agencies. Thus, they were in a better position to assess their own suitability. Better informed
candidates are likely to have a more realistic view of the job, culture of the organization and job
prospects.
Recruiting is seen as a “positive process of generating a pool of candidates by reaching the
right audience, suitable to fill the vacancy” Leopold (2002) is the process of searching the
candidates for employment and stimulating them to apply for the jobs in the organization.
Leopold (2002) states further that the first step of recruitment is to put forward a job analysis
which is important for both the organization and the candidate is not necessary.
However, if the job is needed a job description usually consists of the job title, where the job
is located, what the key purpose of the job is, what are the main duties that the job entails and
what roles it plays in the success of the organization, is compiled.
In agreement with Leopold, Wanous (1992), highlights that the steps involved in the formal
recruitment and the selection process are often fairly standard, but there are numbers of factors to
consider along the way. Initially, the recruiting manager should draw up a job description and
person specification for the vacant role if these are not already available. The steps involved in
formal recruitment and selection process are:
Step i: - identity vacancy
Step ii: - prepare job description and person specification
Step iii: - advertising the vacancy
Step iv: - managing the response
Step v: - short-listing
Step vi: - arrange interviews
Step vii: - conducting interview and decision making
The recruitment and selection are the major function of the human resource department and recruitment
process is the first step towards creating the competitive strength and the recruitment strategic advantage for
the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to
arranging and conducting the interviews and requires many resources and time. Sisson (1994)
Similarly, Hall and Torrington (1998), states that a general recruitment is as follows. The
recruitment process begins with the human resources department reviewing requisitions for
recruitment from any department of the company. These contains: preparing the job description
and person specification. Locating and developing the source of required number and type of
employees (Advertising etc).
Short listing and identifying the prospective employee with required characteristics as
well as arranging the interviews with the selected candidates, conducting the interview and
decision making. The recruitment process is immediately followed by the selection process i.e
the final interviews and the decision making, conveying and the appointment formalities.
2.1.3 Source of recruitment
Every organization has the option of choosing the candidates for its recruitment process from
two kind of sources; internal and external source the source within the organization itself (like
transfer of employees from one department to other, promotions) to fill a position are known as
the internal sources of recruitment.
Recruitment of candidates from all the other sources (like outsourcing agencies etc.) are
known as the external source of recruitment, Schmidt and Hunter (1998).
They further explain that external recruiting seeks to fill vacancies with current employees. It
is the most common approach, notify present employees and encourage them to apply for
positions in which they are qualified, ask present employee for referrals, often those referrals are
other current employees. According to them, internal recruitment is advantageous in a sense that
it increases morale, retain employees, attendance and work records are known, and less training
necessary. However, they say is disadvantages because it encourages lack of new ideals, may
settle for less qualified to avoid hurt feelings, and bring ripple effect creating other vacancies.
In addition, Schmidt and Hunter (1998) demonstrate also that external recruiting may be
effective in certain situations, it includes the ability to attract the most qualified individuals, a
reduction in resentment, the ability to bring in new ideals, and recruitment from minority groups
but to the contrary is calls for the need for more training, the chance of loosing current
employees to new opportunities elsewhere, and the risk of the unknown regarding the new
employee.
External recruiting resources can be used to locate, identify and attract qualified applicants,
and they include :- Newspaper adverts, specialized journals and publications, professional
organizations, educational institutions, public empowerment services, private employment
agencies, labour unions and trade associations, walk-in and mail-ins, and the internet as a new
resource, Taylor and Collins(2000) and are the present employees, unsolicited applicants,
educational and professional institutions public empowerment office, private empowerment
agencies, employees referrals, help wanted advertising walk-in, Schmidt and hunter (1998).
In their literature Taylor and Collins (2000) and Schmidt and hunter (1998), they agree that a
combined approach is probably the most common to make the most of the advantages of each
and further highlight the factors that influence both sources.
Factors affecting recruitment Taylor and Collins (2000) and Schmidt and Hunter (1998) from
the above, the source of recruitment and selection are through internal and external sources.
However, recruitment and selection is faced with lots of challenges.
2.1.4 Challenges of recruitment and selection.
The practice of recruiting and selecting employees for business organizations undoubtedly suffer
some challenges due to the fact that it involves human beings. By nature human beings are not
perfect and these imperfection, sometimes reflect in the recruitment and selection process.
i. Compensation/rewards
According to Mondy, (2008), If the compensation package of a company is inferior to those
provided by other competitors, hiring and retaining the best talent will be difficult or
impossible. He further suggested that if the safety and health records of the organization is
poor as compared to those of other competitors, it will be difficult to hire and retain the best
talents in the organization. Compensation is the monetary reward payment to an employee
for work done. This means that compensation and health and safety records of a company
are important tools use to attract and retain best talents. It also means that best talents will
not go to or stay with an organization that has low and poor compensation and health and
safety records.
ii. Technical advice
In the views of Batty J. (1974), the practice whereby some line or functional managers in
some organizations leave the entire process of engaging employees to the human resources
personnel is quite wrong and is in opposition to the idea behind the personnel function
namely, to advise on employee selection. As stated earlier, technically, it is the functional
manager who selects the best candidate for job opening. This is so because of the fact that
the new employee is coming to work under the departmental manager and he can not blame
anybody should in case the employee performs poorly. There is the tendency of “passing
the back” in case of employee poor performance especially where the departmental
manager was not part of the selection process.
iii. Biases
According to Poole et al., (1999), recruitment and selection processes are complex and
involve human decision making. Unfortunately, however, human information processing
capabilities are limited. Therefore, managers rely sometimes on inferences and shortcuts in
judgment, and biases become a critical issue. In their view human judgment biases can affect
the objective and quality of the selection process. According to Cascio, (1992), the lack of
preparation for interviews allows the selection decision to be biased by information or
characteristics that are not related to the performance of the job. These biases can take the
form of first impression, gender and attractiveness the degree to which the applicant matches
the stereotypes formed by the interviewer before the interview and even the amount of
silence or nonverbal cues present in the interview. The use of structured interviews may
result in the interview being dominated by the interviewer and, as a consequence, the
interviewees may feel overwhelmed and unable to perform their best.
2.1.5 The selection techniques
Organization employ a variety of selection techniques and statistical theory is used to give
credibility to techniques that attempt to measure people organization also need to consider
reactions of applicants to selection methods and an important factor is the perception of fair
treatments Gatewood and Field (1994). The interview is the oldest and most widely used of all
the selection techniques along with application forms and letters of reference, referred to as the
classic trio.
Once applications have been received for the role, the selection process should be clear and a
time able drawn up. There are a number of methods a company can use at the selection stage.
These include identifying whether the candidates has the required skills and experience from
their application or CV face-to-face interviews, assessment centers and completion of case
studies or presentations. Many company like to conduct initial telephone interviews to draw up a
short list of candidates, Dipboye (1992).
Furthermore, Schmidt and Hunter (1998) states a good selection requires a methodical
approach to the problem of finding the best matched person for the job selection process :
preliminary interview, selection tests, employment interview, reference and background analysis,
physical examination, job offer and empowerment contract, and the stages in selection process
include:-
Stage 1:- screening of application forms
Stage 2:- Test- intelligence, aptitude, technical, psychometric, ability, interest.
Stage 3:- selection interview
Stage 4:- selection decision
Lastly according to Digboye (1992) selection methods vary between applications and
resumes used to selected qualified applicants which both include written documents that ccan be
used to determine if a candidate meets basic job requirements employment tests used to test job
skills, personality, or written intelligence / aptitude; they must be reliable and valid others are
personal interviews used to compare information on the application and usually allow a chance
to discuss the job face-to-face, the interviewer can ask questions, but can be applicant as well as
reference cheeks that provide additional information about the application.
2.1.6 IMPORTANCE OF RECRUITMENT AND SELECTION
a) It Ensures Transparency in The Hiring Process
A recruitment and selection policy ensures that all the procedures related to hiring and
selection are performed transparently, and all the members involved (the hiring manager,
HR, etc.) are following the recruitment process with having complete confidence over the
end-result. Moreover, being transparent also means that candidates are always informed
about the status of their application and informed if they are awarded a job.
b) It Paves the Way for Merit-Based Hires
An effective recruitment and selection policy ensures that the overall recruitment process
is being conducted in a fair and legitimate manner. It makes sure that discriminatory
behavior is avoided at any stage of the overall recruitment process – a candidate should
never be discriminated on the basis of his gender, race, age, religion, or nationality. A fair
and authentic policy allows a candidate to take legal action if they feel they’re being
discriminated against any factor. Moreover, every job application should be should be
treated in a confidential manner.
c) It Provides Consistency
A recruitment and selection process that is not consistent gives inconsistent results. Thus,
consistency is another reason for having an effective recruitment and selection policy.
Organizations should make sure not to set different selection criteria for each candidate
as it will then not be possible to determine the effectiveness of each individual. To
achieve consistency, a standardized process should be followed. Instead, it will be more
beneficial if organizations apply pre-determined criteria at all stages of the recruitment
process as it will eliminate the risks of bias and discrimination. Also, companies should
conduct reference checks prior to making any appointment with the candidate and should
be performed in a consistent manner.
d) It Lends Credibility to an Organization
Another reason for having a set recruitment and selection policy is to show that an
organization is credible enough for applying. Today, there are several job vacancies that
are not genuine and many candidates get trapped into the hands of fake companies.
Hence, for gaining reliability, a company should follow specific application procedures
that will make the candidates feel confident for the position they are applying.
e) It Helps Write an Appropriate Job Description
Having a good recruitment and selection policy is essential because it assists the
organization in writing an accurate job description. An appropriate job description is an
integral part of the overall recruitment process as it clearly describes what primary and
secondary tasks will be performed along with the core competencies for a particular role.
2.1.7 THE RELATIONSHIP BETWEEN RECRUITMENT AND SELECTION AND
ORGANIZATION PERFORMANCE.
The effective recruitment and selection of employee is a fundamental HRM activity, one that
if managed well can have a significant impact on organizational performance as well as lead to a
more positive organizational image, recruitment and selection are vital process for a successful
organization, having the right staff can improve the sustain organizational performance.
Also, effective recruitment and selection is central and crucial to the successful functioning
of the organization as it depends on finding people with the necessary skills, expertise and
qualifications to deliver the organizations strategic objectives and the ability to make a positives
contribution to the values and aims of the organization Sisson (1994).
On the other hand, better recruitment and selection strategies result in improved
organizational outcomes. The more effectively organizations recruit and select candidates, the
more likely they to hire and retain satisfied employees. In addition, the effectiveness of an
organization selection system can influence bottom-line business outcomes, such as productivity
and financial performance. Hence, investing in the development in a comprehensive and valid
selection system in money well spent, Hall and Torrington (1998)
Recruitment, as a human resource management function, is one of the activities that impact
most critically on the performance of an organization recruitment and selection also has an
important role to play I ensuring worker performance and positive organizational outcomes it is
often claimed that selection of workers occurs not just to replace employees or add to a
workforce but rather aims to put in place workers who can perform at a high level and
demonstrate commitment.
Recruitment and selection play a pivotally important role in shaping an organization
effectiveness and performance, if organizations are able to acquire workers who already posses
relevant knowledge skills and aptitudes and are also able to make an accurate prediction
regarding their future abilities, recruiting and selecting staff in an effective manner can both
avoid undesirable costs. Pilbeam and Carbridge (2006) provides a useful review of potential
positive and negatives aspects noting that :- the recruitment and selection of employees is
fundamental to the functioning of an organization, and there are compelling reasons for getting it
right. Inappropriate selection decisions reduce organizational effectiveness, invalidate reward
and development strategies, are frequently unfair on the individual-recruit and can be distressing
for manager who have to deal with unsuitable employees. Recruiting and selection is very
important for the survival of every organization and appraised from time to time in order for
them to be abreast with new trends and challenges. When employees are developed it help
increase their performance and help sustain the growth of organization.
2.1.8