LEADSTAR COLLEGE OF MANAGEMENT AND

LEADERSHIP
FACULTY OF BUSINESS AND LEADERSHIP

EFFECTIVENESS OF RECRUITMENT AND SELECTION PRACTICE:

(THE CASE OF COMMERCIAL BANK OF ETHIOPIA DESSIE DISTRICT)

A THESIS SUBMITED
FOR
THE PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR
DEGREE OF MASTERS OF BUSINESS ADMINISTRATION (MBA)
BY
SOLOMON W/MEDHIN MEZGEBU

PRINCIPAL ADVISOR:
YIMER AYALEW (PHD candidate)
OCTOBER, 2019
 LEADSTAR COLLEGE OF MANAGEMENT AND
LEADERSHIP
FACULTY OF BUSINESS AND LEADERSHIP

EFFECTIVENESS OF RECRUITMENT AND SELECTION PRACTICE:

(THE CASE OF COMMERCIAL BANK OF ETHIOPIA DESSIE DISTRICT)

BY: Solomon W/Medhin

Approved by Board of examiners:

Advisor Signature ……………………..

Co -advisor …………………………….

Examiner Signature ……………………

 Declaration
I declare that this thesis work entitled Effectiveness of Recruitment and Selection Practice my
original work, has not been presented earlier for award of any degree or diploma to any other
university and that all sources of materials used for the thesis have been duly acknowledged. I have
produced it independently except for the guidance and suggestion of my research advisors.

Declared by: Name______________

Sign__________________________
Date__________________________
Confirmed by:
Advisor: Name : ______________
Sign________________________
Date________________________
Co-advisor: Name: _____________
Sign_________________________
Date_________________________
 LETTER OF CERTIFICATION
This is to certify that Solomon W/Medhin has carried out his research work on the topic of
Effectiveness of Recruitment and Selection Practice: The Case of Commercial
Bank of Ethiopia Dessie District under my supervision. This work is original in its nature
and it is suitable for Submission in partial fulfillment of the requirement for the award of degree of
Master of Business Administration (MBA).

________________________
Yimer Ayalew (PHD candidate )
(Advisor)
 Abstract

Recruitment and selection is the process of attracting individuals on a timely basis, in sufficient
numbers and with appropriate qualifications. Thus recruitment is the process of identifying and
attracting potential candidates from within and outside an organization to begin evaluating them
for future employment. Selection then begins when the right calibre of candidates are identified.
Selection is thus the process through which organizations make decisions about who will or will
not be allowed to join the organization. And therefore recruitment and selection practice is the
only way that attract and hire competent employees to the organization. Commercial Bank of
Ethiopia has a vision to become a world class Commercial Bank in the year 2025 and it is obvious
that the bank could not accomplish its vision without competent employees. The study raised major
research questions related to the Recruitment practice, Selection practice and competency
assessment, awareness of the human resource business team in related to the importance of
recruitment and selection practice in attracting and hiring competent employees, challenges of the
recruitment and selection practice, and suggestions that can help for the improvement of the
practice. For the purpose of this study, descriptive research was used and stratified random
sampling technique was also used. The majority respondents evaluated the recruitment and
selection practice of the bank is not effective in attracting and hiring competent employees.
Awareness of the human resource business partner’s team is excellent, but it is in theory not in
practice, the vacancy announcement method is very poor, there are also some barriers which can
hinder experienced and matured employees from joining the organization. There are limited
number of and poor assessment methods. There are also challenges which may make the whole
recruitment practice ineffective. Finally based on the findings possible solutions were given. These
include; using other ways of vacancy announcement and disclosing the benefit package in the
announcement, it is advisable for the business partners to make their knowledge in to practice,
avoiding age barrier from the announcement criteria, widening the assessment method and using
other modern methods of assessment in addition to test and interview.
Key Words
Recruitment, Selection, Competent, Human resource, Attracting, Commercial Bank of Ethiopia,
Dessie District.

I
 ACKNOWLEDGMENTS

First of all give glory to my lord Jesus Christ who strengthens me through all my work. And then I
would like to thank my advisor, Yimer Ayalew for his continues advice and giving direction in
conducting my study. I am so grateful for the precious hours you dedicated to me and to my
dissertation. I am also grateful to many other individuals who were instrumental in the process of
completing this degree. Especially, I would like to thank the employee

s and management of commercial bank of Ethiopia those included under my study for their positive
cooperation in conducting this study.

II
Acronyms

CGPA………………………………Cumulative Grade Point Average

HR……………………………........Human Resource
HRD…………………………….....Human Resource Development
HRM…………………………….....Human Resource Management
SPSS…………………………………Statistical Package for Social Science

III
 Table of Contents
Abstract.............................................................................................................................................................. I
ACKNOWLEDGMENTS ....................................................................................................................................... II
Acronym…………………………………………………………………………………………………………………………………………………….III

Table of contents……………………………………………………………………………………………………………………………………….IV

List of tables……………………………………………………………………………………………………………………………………………….VI

List of figures…………………………………………………………………………………………………………………………………………….VII

CHAPTER ONE ................................................................................................................................................... 8

1. Introduction .......................................................................................................................................... 8
1.1. Background of the Study............................................................................................................... 8
1.2 Statement of the problem ................................................................................................................ 10
1.3 Research Questions .......................................................................................................................... 11
1.4 General Objective ............................................................................................................................. 11
1.5 Specific Objectives ............................................................................................................................ 11
1.6 Significance of the Study ................................................................................................................... 12
1.7 Scope of the Study ............................................................................................................................ 12
1.8 Limitation of the Study ..................................................................................................................... 12
1. 9 Organization of the Paper ................................................................................................................ 13
CHAPTER TWO ................................................................................................................................................ 14
2 REVIEW OF LITERATURE........................................................................................................................... 14
2.1 Theoretical Literature Review........................................................................................................... 14
2.1.1 The Concept of Recruitment and Selection ................................................................................... 14
2.1.2 Recruitment and Selection Process and Development of the Organization ................................. 16
2.1.3 The Process of Recruitment ........................................................................................................... 16
2.1.4 The Selection Decision ................................................................................................................... 19
2.1.5 Recruiting Sources/Methods ......................................................................................................... 20
2.1.6 Challenges of Recruitment and Selection ...................................................................................... 22
2.1.7 The Changing Context of Recruitment and Selection Decisions.................................................... 24
2.1.8 Recruitment and Selection Practices and Performance ................................................................ 28
2.1.9 Human Resource Development ..................................................................................................... 28
2.2 Empirical Literature Review .............................................................................................................. 30

IV
 2.3 Conclusion and Research Gap........................................................................................................... 31
CHAPTER THREE .............................................................................................................................................. 32
3 RESEARCH METHODOLOGY ..................................................................................................................... 32
3.1 Introduction ...................................................................................................................................... 32
3.2 Design of the Study ........................................................................................................................... 32
3.3 Data sources ..................................................................................................................................... 32
3.4 Population, Sampling technique and Sample size. ........................................................................... 32
3.4.1 Population of the universe ............................................................................................................ 32
3.4.2 Sampling technique ....................................................................................................................... 33
3.4.3 Sample size .................................................................................................................................... 33
3.5 Instruments of Data Collection ......................................................................................................... 34
3.6 Analysis of Data................................................................................................................................. 35
CHAPTER FOUR ............................................................................................................................................... 36
4 Presentation, Analysis and Interpretation of data .................................................................................. 36
4.1 Introduction ...................................................................................................................................... 36
4.2 Awareness of Human resource Team on the Importance of effective Recruitment selection
practice ................................................................................................................................................... 37
4.3 Effectiveness of Recruitment Practice .............................................................................................. 37
4.4 Effectiveness of Selection Practice ................................................................................................... 40
4.5 Competency Assessment .................................................................................................................. 42
4.6 Challenges of Recruitment and Selection Practice ........................................................................... 52
CHAPTER FIVE ................................................................................................................................................. 53
5 Summary of Findings, Conclusion and Recommendation ....................................................................... 53
5.1 Summary of Findings ........................................................................................................................ 53
5.2 Conclusion ......................................................................................................................................... 55
5.3 Recommendations ............................................................................................................................ 56
Reference ................................................................................................................................................ 58
Appendix I ............................................................................................................................................... 63

V
List of Tables
Table 1: Sample size…………………………………………………………………34

Table 2: Questionnaire response rate by Branch……………………………………..36

Table 3: Announcement of the vacant post…………………………………………..37
Table 4: Requirements to apply for the vacant post………………………………….38
Table 5: Requirements to that hindered qualified candidates………………………...39
Table 6: Age and work experience cross tabulation………………………………….39
Table 7: The kind of assessment method used………………………………………..40
Table 8: Work experience and the kind of assessment method used………………....41
Table 9: The type of Test given…………………………………………………….....42
Table 10: The kind of test versus work experience…………………………………....42
Table 11: The Type of interview question asked……………………………………...43
Table 12: Test against the Bank’s values……………………………………………...43
Table 13: Test of personal behaviour………………………………………………….44
Table 14: The reason for not receiving a Job description…………….........................45
Table 15: Sources of basic Competencies…………………………………………......46

Table 16: The General rating of the recruitment and Selection Practice of the Bank…47

Table 17: Justification for rating……………………………………………………….47

Table 18: Challenges of recruitment and selection practice…………………………...48

VI
List of Figures

Figure 6: Qualified Job Seekers……………………………………………………..38

Figure 4: Job description…………………………………………………………….45

Figure 5: Basic Competencies for banking work……………………………………46

VII
 CHAPTER ONE
1. Introduction
1.1. Background of the Study
People are individuals who bring their own perspectives, values and attribute to
organizational life, and when managed effectively, these human traits can bring considerable
benefits to organizations. One of the most significant developments in the field of
organization in recent times is the increasing importance given to human resources. More and
more attention is being paid to motivational aspects of human personality, particularly the
need for self-esteem, group belonging, and self-actualization. This new awakening of
humanism and humanization all over the world has in fact enlarged the scope of applying
principles of human resource management in organizations. The development of people, their
competencies, and the process development of the total organization are the main concerns of
human resource management (Mullins, 1999).

Recruitment and selection is the process of attracting individuals on a timely basis, in

sufficient numbers and with appropriate qualifications (Walker, 2009).Thus recruitment is the
process of identifying and attracting potential candidates from within and outside an
organization to begin evaluating them for future employment. Selection then begins when the
right caliber of candidates are identified. Selection is thus the process through which
organizations make decisions about who will or will not be allowed to join the organization.
The selection process varies from organization to organization, job to job, and country to
country. Some of the processes 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 abilities to be successful at their jobs (ibid).

Recruitment and selection also has an important role to play in ensuring worker performance
and positive organizational outcomes. It is often claimed that selection of workers occurs
not just to replace departing employees or add to a workforce but rather aims to put in
place workers who can perform at a high level and demonstrate commitment (Dessler,
2000).

Following the initial selection of incumbents they are likely to again be chosen to develop
their further interest in the organization and later to encourage them to apply for other jobs.
Using appropriate techniques the suitable candidates are thus, able to be recruited and

8
selected during their career development. It has been argued that in order for the firm to build
and sustain the competitive advantage, proper staffing is critical Recruitment and selection is
a major Human Resource Management function as it encompasses all organizational
practices and decisions. Recent technological advances, globalization, social trends and
changes within organizations have brought new challenges for recruitment and selection
(Hax, 2001)

To manage a diverse workforce effectively, an organization must hire and promote the most
capable candidate for a job, while being mindful of the necessity to build a workforce that is
representative of the greater business community. This may be achieved through using more
appropriate and inclusive recruitment and selection strategies. Despite a recent increase in
published literature discussing recruitment and selection practices, there has been little
change in the types of methods used to recruit and select employees (Kelly, 2006)

Better recruitment and selection strategies result in improved organizational outcomes. 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.

In Ethiopia and other parts of the world, recruitment and selection processes are practiced to
some extent even though job placements in both public and private organizations are more or
less affiliated to networking and Traditional inclinations. It is vital that organizations select
people with the quality essential for continued success in this competitive global village of
today. The only means of achieving this success is through proper recruitment and selection
practices.

Recruitment and selection process is vitally important to any organization desirous of

attracting and appointing qualified personnel. Getting the right people in the right place at the
time doing the right job is an essential element of recruitment and selection process in
organizations. In order for the process to meet desired goals, it must be valid and measurable,
with minimum

9
1.2 Statement of the problem
Available evidences indicate that there is a positive and significant relationship between
recruitment and selection and the performance of an enterprise (Gamage, 2014). Sang (2005)
for example discovered a positive association between recruitment and selection and business
performance. Such were also of positive results between recruitment and selection and
performance as seen in Ichniowski and Shaw (1999), Katou and Budhwar (2006) and Wright
et al. (2005). Other studies such as Syed and Jama (2012) have equally shown that
implementing an effective recruitment and selection process is positively related to
organizational performance.

The study by Sen and Saxena (1997) has emphasized the importance of a quality process
during the time of recruitment and hiring given that the right type of labor is hard to come by.
In fact, while lending credence to the importance of hiring quality candidates who are hard to
find Tendon (2006) warned that talent deficiency is unrelated to huge population. While
reporting that recruitment is the only component for attracting and retaining knowledge
workers, Unwin (2005) gave significance to the process involved during the time of
recruiting and hiring good candidate.

Commercial Bank of Ethiopia has a vision to be a world class bank in the year
2025(www.combanketh.et) , which is about after 9 years and it is clear that it is impossible to
be a world class bank without highly competent employees. In addition to this in the Bank’s
mission statement it is clearly mentioned that the bank will accomplish its mission by
deploying highly motivated, skilled, and disciplined employees, more over the bank is in the
expansion process, by now Commercial Bank of Ethiopia Dessie District has about 69
branches. It is said, “About 69”, because, the branch expansion becomes the daily
phenomenon of the Bank and the may increase with in a day (www.combanketh.et). From
the points mentioned above, it is clear that the Bank is in need of quality and competent
employees. Effective recruitment and selection process is the only way to attract and hire
competent employees. That means if the process is effective the competency of the
employees will be without doubt. In addition to this, as far as the researcher’s knowledge
there are no researches in Commercial Bank of Ethiopia Dessie district that have been
conducted in such topic. Those researches conducted on human resource have not assessed
the effectiveness of the practice in attracting and selecting competent employees. Therefore

10
the researcher want to assess how effective is the recruitment and selection practice of
Commercial Bank of Ethiopia Dessie District in attracting and selecting competent
employees.

1.3 Research Questions

The research questions which served as a guide to the study are

 Do the Human Resource Commercial Bank of Ethiopia Dessie District aware of the
importance of effective recruitment and selection practice in attracting and hiring
competent employees?

 What are the recruitment practices of Commercial Bank of Ethiopia Dessie District?

 What are the selection practices of Commercial Bank of Ethiopia Dessie District?

 Is the recruitment and selection practice of Commercial Bank of Ethiopia Dessie

District really measuring the competency of hires?

 What are the challenges of the Recruitment and Selection practice of Commercial
Bank of Ethiopia Dessie District.?

1.4 General Objective

 To assess how effective is recruitment and selection practice of Commercial Bank of
Ethiopia Dessie District in attracting hiring competent employees.

1.5 Specific Objectives

The specific objectives are:

 To analyze the awareness of the human resource management team on the importance
of effective recruitment and selection practice in attracting and hiring competent
employees.

 To examine recruitment practice of Commercial Bank of Ethiopia Dessie District.

 To examine selection practice of Commercial Bank of Ethiopia Dessie District.

 To evaluate whether the recruitment and selection process is really measuring the
competency of the candidates.

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  To identify the challenges of the Recruitment and Selection practice of Commercial
Bank of Ethiopia Dessie District.

1.6 Significance of the Study

The study can help Commercial bank of Ethiopia to check its current recruitment and
selection practice and to adopt effective recruitment and selection practice that can help to
attract and hire competent candidate that can help to realize its vision of becoming a world
class commercial bank in the year 2025, more over the practice will help the banking industry
which is in a stiff competitive environment and other organizations who are concerned for
their performance. Therefore, the study may bring awareness for the organization or firms to
take accurate decisions with respect to adopting effective recruitment and selection practice.

1.7 Scope of the Study

The study was delimited conceptually to investigate external Recruitment and Selection
practice. And it was also geographically delimited to Commercial Bank of Ethiopia Dessie
District that is to the branches of Commercial Bank of Ethiopia and the District office found
in Dessie town. Further it is delimited on the recruitment and selection process of the junior
staffs, because it is the only huge recruitment and selection practice implemented at the
district level in the bank.

Also the study is delimited to the clerical employees of the Bank. Since external
Recruitment and Selection practice of Commercial Bank of Ethiopia Dessie District targeted
at c l e r i c a l employees of the institute. This will facilitate mobility to target population
as well as to cut down cost comparatively. Other factors like time and convenience will
also be taken into consideration.

1.8 Limitation of the Study

Recognizing the limitations of the study will enable the reader to realize the constraints that
the researcher had faced in conducting the research. As any other research, the researcher
have faced several limitations that constraint in conducting the research such as,
unwillingness or carelessness of some respondents in filling the questionnaires during data
collection and employees did not have sufficient time to answer the question provided due to
busy with their work, especially those who were working on the front line of the branch due
to their high contact with customers and the sensitivity of their job which is related to the
very liquid asset, cash. However, the researcher have tried to overcome such challenge by

12
using different mechanisms like providing most clear and unambiguous questionnaire, giving
enough time for respondents to respond the question in the best way and wait for convenient
time to conduct interview when the officials finished their work. Moreover, the researcher
had exerted at most effort to go according to the timetable.

1. 9 Organization of the Paper

The study consists five chapters. The first chapter consists of the background to the study,
statement of the problem, Scope of the study, Objective of the study and significance of the
study and lastly the organization of the study. Chapter two deals with literature reviews of
concepts relevant to the study. In chapter three, the methodology adopted to conduct the
research is stated. This chapter deals with issues such as the research design, instrument and
data collection tools and data analysis. Chapter four deals with data presentation, discussion
and analysis. The last chapter indicates the findings of the study, conclusion and
recommendations.

13
 CHAPTER TWO

2 REVIEW OF LITERATURE
This section presents a brief review of existing theoretical and empirical literature of
recruitment and selection. At the end of the review, an attempt is made to summarize the
major drawbacks of the existing empirical studies and to identify the knowledge gap to be
filled in by further investigation.

2.1 Theoretical Literature Review

This chapter deals with the assessment of literatures which relate to the topic the recruitment
and selection practices of organization. Several literatures would be selected and relevant
areas would be reviewed and evaluated. This chapter provides information about aspect
of previous works which relate to this study. In view of this, a number of presentations
culled from various sources are under review here.

2.1.1 The Concept of Recruitment and Selection

According to Costello (2006) recruitment is described as the set of activities and processes
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 own 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 staffing process, an organization formulates plans to
fill or eliminate future job 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 expanded to attract and retain such talent. Also related to the success of a
recruitment process are the strategies an organization is prepared to employ in order to
identify and select the best candidates for its developing pool of human resources.
Organizations seeking recruits for base-level entry positions often require minimum
qualifications and experiences. These applicants are usually recent high school
or University/technical College graduates many of whom have not yet made clear
decisions about future careers or are contemplating engaging in advanced academic
activity. At the middle levels, senior administrative, technical and junior executive
positions are often filled internally. The push for scarce, high-quality talent, often recruited

14
from external sources, has usually been at the senior executive levels. Most organizations
utilize both mechanisms to effect recruitment to all levels.

The focus of recruitment and selection according to Montgomery (1996) is on matching

the capabilities and inclinations of prospective candidates against the demands and rewards
inherent in a given job. 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). 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 the traditional recruitment
and selection process through proper decision techniques, with that both the effectiveness
and the efficiency of the processes can be increased and the quality of the recruitment and
selection decision improved. A human resource information system is a system exploited to
acquire, store, manipulate, analyze, retrieve, and distribute relevant information regarding
an organization's human resources (Huselid, 1995). The purpose of the system is to
support human resource services from the strategic level down to the tactical and
operational levels. Many decision- making problems, including recruitment and selection,
are herein involved. The system facilitates automated or computerized procedures to solve
the problems, and is of vital importance as an aggressive tool in the information age.

Researchers indicate that effective recruitment practices and policies enable boards to find
the best candidate for their organization. The personnel function becomes especially
important when recruiting and selecting new administrators. A critical role for human
resource management is how to elicit positive reactions from candidates when
discussing administrative roles. When opportunities are presented to employees to move
towards careers in administration (i.e., tapping shoulders of potential candidates), often a
negative reaction occurs. People without administrative experiences have negative
perceptions and views of the role of the administrator. In attempts to attract and support
individuals to the administrator’s position it is necessary to identify what barriers prevent
potential candidates from applying to the pool. Job complexity and workload are perceived
by employees as the two considerations having had the greatest impact on the number of

15
applicants for administrative positions. Other factors include poor remuneration as it relates
to demands and expectations of the job and lack of resources and support structures in.
Many highly qualified, competent, and talented employees dismiss careers in
administration because they do not want to sit in an office all day. Until some
alternative image is understood, or at least some support and resources put in place, a
problem of pre- screening and identification will not likely improve (Mullins, 1999).

2.1.2 Recruitment and Selection Process and Development of the

Organization
(ibid) indicated that to be a high performing organization, human resource management
must be able to assist the organization to place the right person in the right job. The
human resource management practices include recruitment, selection, placement,
evaluation, training and development, compensation and benefits, and retention of the
employees of an organization. Businesses have developed human resource information
systems that support: (i) recruitment, selection, and hiring, (ii) job placement, (iii)
performance appraisals, (iv) employee benefits analysis, (v) training and development,
and (vi) health, safety, and security. The first few activities of human resource
management are recruiting and selecting which deal with the actions concerned, and the
recruiting is also less frequently alerted in human resource information system recently.
Besides, e-recruitment on the web being the current trend for the recruitment and
selection processes can further distinguish many activities of the processes. Dessler (2000)
lists the essence of these in the following; build a pool of candidates for the job, have
the applicants fill out application forms, utilize various selection techniques to identify
viable job candidates, send one or more viable job candidates to their supervisor, have the
candidate(s) go through selection interviews, and determine to which candidate(s) an offer
should be made.

2.1.3 The Process of Recruitment

Odiorne (1984) indicated that the quality of new recruits depends upon an organization's
recruitment practices, and that the relative effectiveness of the selection phase is
inherently dependent upon the calibre of candidates attracted. Indeed Smith et al. (1989)
argue that the more effectively the recruitment stage is carried out, the less important
the actual selection process becomes. When an organization makes the decision to fill an
existing vacancy through recruitment, the first stage in the process involves conducting a

16
comprehensive job analysis. This may already have been conducted through the human
resource planning process, particularly where recruitment is a relatively frequent
occurrence. Once a job analysis has been conducted, the organization has a clear
indication of the particular requirements of the job, where that job fits into the overall
organization structure, and can then begin the process of recruitment to attract suitable
candidates for the particular vacancy.

According to Odiorne, (1984) one result of effective recruitment and selection is reduced
labor turnover and good employee morale. Recruiting ineffectively is costly, since poor
recruits may perform badly and/or leave their employment, thus requiring further
recruitment. In a cross national study of recruitment practices, suggests that, in reality,
recruitment practices involve little or no attempt to validate practices. Personnel managers
tend to rely on feedback from line managers and probationary periods and disciplinary
procedures to weed out mistakes. Firms with high quit rates live with them and tend to build
them into their recruitment practices and they do not analyze the constitution of their labor
turnover.

A number of recent studies have suggested that some recruitment methods are more
effective than others in terms of the value of the employees recruited.

Miyake, (2002) indicated 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 involuntary turnover). People recruited by word of
mouth stay longer because they have a clearer idea of what the job really involves. Miyake,
(2002) reviewed five studies in which average labor turnover of those recruited by
advertising was 51 per cent. The labour turnover for spontaneous applicants was 37 per
cent and turnover for applicants recommended by existing employees was 30 per cent.
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. Burack, (1985) argues that recruitment sources are
significantly linked to differences in employee performance, turnover, satisfaction and

17
organizational commitment. In a survey of 201 large US companies, Burack asked
respondents to rate the effectiveness of nine recruitment sources in yielding high-quality,
high-performing employees. The three top ranked sources were employee referrals, college
recruiting and executive search firms. However, Burack, (1985) cautions that, while these
general results are useful, there is a need for greater internal analysis of the relative
quality of recruits yielded by different sources.

In a study assessing the recruitment of new graduates, Kersley et al (1997) reiterated the
anticipatory socialization stage for students planning to enter professions, and in particular
the effects of recruitment and selection experiences on career expectations and
orientation. They agreed that the nature of students’ job search activity, the possession of
relevant work experience, and exposure to employers through recruitment and selection
activities may form part of the “evolving sequence of a person’s work experiences” which
contributes to anticipatory socialization. It has been argued that exposure to employers
through recruitment and selection is a social process where employers and potential
employees gradually perceive a match. Through job search activities and awareness of
employers’ recruitment literature and events, students gather information about
organization’s goals, values, climate, and work practices to guide their ultimate decision.
Exposure to selection procedures provides information about the culture and attributes of
an organization, and candidates form judgments from their perceptions of the fairness of
the selection methods used. Delery and Doty (1996) argued that providing students with
greater awareness of employment opportunities, and equipping them with the ability to be
proactive in approaching potential employers, will lead to more effective career self-
management and selection processes.

There is also evidence that employers prefer graduates with a broader range of skills than
just academic knowledge and greater appreciation of business needs both of which can
be gained through work experience and awareness of employers’ recruitment and
selection procedures. Using a sample of students in two traditional and one emerging
profession (law, accountancy and human resource Management), the study examined the
extent of career-related pre-employment work, recruitment and selection experiences and
the relationship between these experiences and career expectations. The focus on
professions reflects the expectation that anticipatory socialization is likely to be greater
amongst these students. Although most students in their final years of university training
will have had some contact with potential employers, students in dedicated professional

18
courses are likely to be provided with information earlier in their training about potential
employment in the profession. This is partly because of the prescribed nature of the
degree, the mandatory post-degree training required for membership of the professional
institute, unlike the problems identified in general degree courses, because lecturers are
likely to have closer ties to the practicing profession. Students in traditional professions,
therefore, are exposed earlier to the values of the profession, such as a commitment to
client service and a professional code of conduct. The mandatory nature of this training
also makes it likely that such a socialization process persists despite idiosyncratic events
within a profession; for example, recent concerns with corporate governance within
accountancy which may have adversely affected the attractiveness of the profession for
students and hence may impact recruitment into the profession (Burack , 1985).

2.1.4 The Selection Decision

While the caliber of candidate is determined by the value of the recruitment process, the
selection decision remains a difficult one. Gould, (1984) argues that most mistakes are
caused by the fact that managers generally give little thought to the critical nature of the
decisions. Employers are surprised and disappointed when an appointment fails, and
often the person appointed is blamed rather than recognizing the weaknesses in the
process and methodology, even the soundest of techniques and best practice (in selection)
contain scope for error. Some of this is due to the methods themselves, but the main
source is the frailty of the human decision makers.

Selection tools available to organizations can be characterized along a continuum that

ranges from the more traditional methods of interviews, application forms and references,
through to the more sophisticated techniques that encapsulate biographical data, aptitude
tests, assessment centers, work samples, psychological testing, and so forth. Each
method of selection has its advantages and disadvantages and comparing their rival
claims involves comparing each method's merit and psychometric properties. The degree
to which a selection technique is perceived as effective and perhaps sophisticated is
determined by its reliability and validity. In a comparison of personnel selection practices
in seven European countries explored the utilization of a range of established selection
methods. They reported a general trend towards structured interviews in all countries and,
while the general validity and acceptability of methods such as work samples, group

19
exercises and assessment centers were widely recognized, reported usage of these methods
was infrequent (Miyake, 2002).

Clear differences in the frequency of the use of several selection methods did emerge from
the study which reported, among others, the very high take-up of references and assessment
centers in both the UK and Germany, the high, almost exclusive, frequency of graphology in
France, and the limited use of testing and biographical inventories amongst all respondents.
In his study of recruitment and selection practices in the USA, Burton (2001) found that
approximately 25 per cent of respondent organizations conducted validation studies on
their selection methods. Furthermore, in a rating of various selection methods, those
perceived to be above average in their ability to predict employees' job performance
included work samples, references/recommendations, unstructured interviews, structured
interviews and assessment centers. Cran (1995) suggests that developments in the realm of
selection lend some support to those who propound the HRM thesis, where a key
feature has been the increase in testing designed explicitly to assess behavioral and
attitudinal characteristics. He further indicates that the extent to which these more
sophisticated and systematic approaches can be, and are, deployed, depends to a large
degree, on sectorial circumstances and on the wider employment- management policies
being pursued.

2.1.5 Recruiting Sources/Methods

Researchers face many decisions when selecting recruitment methods. Issues to consider
include the type of sample (random or convenience), cost, ease, participant time demands
(e.g., total time, days of week, and time of day), and efficiency (e.g., staff hours per recruited
participant). Researchers have a number of methods from which to choose, including
advertising, direct mail, and telephone. Advertising can be used both to publicize a study and
to recruit participants. Recruitment via advertising has the advantages of low cost and
convenience, but the samples are non-random and often highly motivated, and youth may be
especially hard to reach this way. Recruitment via mail is also low in cost and convenient, but
youth are difficult to reach by mail and return rates tend to be low. An added problem with
mail requests or surveys is that one can never be certain who completed the request/survey
(Armstrong, 1991). Institutions or events (such as medical offices, schools, community sports
organizations, health fairs, community events, and churches) often are used as a setting for
recruitment. Schools present a promising avenue for the recruitment and assessment of youth.

20
Their primary advantage is that they house a large number of children in one place and
present a captive audience, although parental consent usually is still required. However,
recruitment of participants from schools may meet resistance from school administrations
for political or practical reasons.

Additionally, recruitment at schools may not achieve the goal of sample

representativeness as student characteristics vary between different types of schools
(e.g., private vs. public) and between schools in different neighborhoods. Recruitment at
schools may not be appropriate in studies having a family or neighborhood context,
requiring a greater dispersal of participants from a larger area, or focusing on data
collection in the home. Door-to-door recruitment is another option. For large studies, this
recruitment method can be costly in terms of staff time and travel expenses, and it is difficult
to assure that recruiters randomly sample homes. Despite these concerns, door-to-door
recruitment may be a necessary recruitment strategy for certain potential participants (e.g.,
those who do not have a residential phone) (French, 1982).

Telephone recruitment has an important advantage over these methods in that it can be used,
in a fairly straightforward way, to randomly select respondents from the larger population.
The telephone provides a relatively low-cost, effective means of contacting many
households, as is often required for large-scale etiological research, and of making a
quick determination of eligibility and willingness to participate in the study.
Disadvantages of the telephone method include its limitation to households with
telephones, the problems of missing or changed phone numbers, challenges presented by
technology (such as answering machines or caller ID) that complicate the ability to
reach people, and relatively easy refusal or termination of the conversation by unwilling
respondents. Perhaps the largest problem with telephone contact methods involves rates of
non-response. Kaplan and Norton (2004) found that the number of people who refused
to provide screening information tended to be higher by telephone than in person.
However, refusals over the telephone tend to be less likely than with mailed surveys
(Kelly, 2006).

It should be noted that telephone methods can be used not only for recruitment, but also for
data collection. Recent advances in telephone survey methodology have made telephone
recruitment and surveying an increasingly attractive option in many research fields (Kaplan
& Norton, 2004).

21
Recruitment procedures need not be limited to one method. It is possible and often
desirable to combine methods to enhance the recruitment success of a particular project. For
example, use of focus groups and pilot studies that involve the community and pre-
recruitment publicity can lead to higher rates of consent (Drucker, 1999).

From the above, the sources of recruitment and selection are through advertising, via the
internet and so forth. However recruitment and selection is faced with lots of challenges.

2.1.6 Challenges of Recruitment and Selection

According to Kaplan and Norton, (2004) a common problem in recruitment and selection is
poor HR planning. Rigorous HR planning translates business strategies into specific
HRM policies and practices. This is particularly so with recruitment and selection policies
and practices. The key goal of HR planning is to get the right number of people with the
right skills, experience and competencies in the right jobs at the right time at the right cost.
Detailed and robust recruitment and selection policies, such as recruitment and selection
procedures, assessing criteria, talents auditing and processing the information about the
labor market are important in recruiting and deploying appropriate employees at the right
time. Past research shows that the competency level of HR managers has a major influence
on recruitment and selection and experienced HR experts within the HR department will not
only shorten vacancy duration, but also improve the quality of the applicants. Moreover,
effective recruitment and selection is possible only if there is a dedicated and competent HR
team (Kaplan and Norton, 2004)

In the strategy implementation phase, the extent of recruitment and selection strategic
integration can be gauged through four distinctive indicators. These indicators are: the
timely supply of an adequately qualified workforce, effective job analysis and
descriptions, effective selection, and the involvement of line managers in the recruitment
and selection practices. A key source of uncertainty in the business strategy
implementation is whether there is a timely supply of adequate qualified people, and to a
great extent this uncertainty involves the quality of employees. For instance, a firm might
decide to leverage a different human capital pool in terms of skills and education level than
its rival firms as a competitive strategy even within the same industry to develop specific
capabilities or to develop a HR process advantage. An organization can successfully
eliminate this uncertainty if its recruitment and selection policies and practices are
strategically integrated with business (Whitmell Associates, 2004).

22
Effectively conducting job analysis and targeting right potential candidates ensures a good
match between applicants and the jobs. Argument has been given that under qualified
employees may not able to effectively perform their job positions due to lack of
knowledge and competencies, while on the other hand over qualified employees tend to
experience less job satisfaction due to their higher qualification than a desired level for a
given job. For every job in the organization, a thorough job analysis, which includes job
description and job specifications, is necessary and based on this, an appropriate selection
criteria is vital. The job description provides indications of the duties to be undertaken, and
the job specification usually prescribes relevant personal qualities and attitudes as well as
skills and knowledge required for the job (Johnston, 1999).

A range of methods, such as application forms, interviews, formal tests, references,

assessment centres and official transcripts are used by firms in the selection process. A firm
needs to choose a method that is most appropriate to the job positions. HR experts
generally drive the staffing process and the purpose of the staffing is to fulfill the
requirements of business, and the skill levels presented by each new recruit is likely to
be judged better if the line managers are involved in the recruitment and selection process.
(Dess and Jason, 2001) suggest that in business strategy implementation the involvement of
line managers in the entire staffing process(i.e., drafting of job descriptions, setting selection
criteria and being on the panel of recruitment) is vital for ensuring recruitment and
selection to meet business needs. In other words, the line managers are the owner of the
recruitment and selection process along with HR playing a facilitator role.

Scholars have argued that other key issues and controversies run through analyses of
human resource management and recruitment and selection: efficiency, control, and the
difficulty of orienting practice towards social justice are often cited. The first two
problematic, as (Burton, 2001) notes, have been central to the management of people for
as long as managers have been present in organizations. The latter is also common across
all organizations, but is a particular academic and policy concern for smaller or growing
organizations (ibid). In recruitment and selection practice the construction of formalized
selection frameworks and norms of acceptable discrimination may be seen as an attempt
to enable managers to navigate between efficiency, control and social justice. In their
advice on how to achieve the perfect fit of person, organization and job, they argue that
selecting on the basis of managerial opinion is ‘utterly unscientific and unreliable and that
managers are ‘liable to be turned this way and that by the most inconsequential of

23
considerations’. In place of this unsatisfactory state of affairs, these authors propose that
physiognomy and the physical self-provide the key to ‘unlocking the inner secrets’ of the
individual seeking employment, and therefore should inform the selection process.
Managers are advised to assess nose, forehead, chin, habitual facial expression, digestion,
skin texture, and elasticity of muscle as found in Blackford and Newcomb, 1914 early
people management textbook. The underlying philosophy of this process is that everything
about man indicates his character and as much information as possible should be
collected to inform a decision - their list also includes religious belief and marital status.

Taking heredity and environment as bases for granting or denying access to an organization
and job is now legally unacceptable. The argument presented by Blackford and
Newcomb (2002), particularly in relation to skin, color and its predictive properties, could
be seen as a product of its time and place. However, it is important to note that the study is
based on what was then seen as a sound scientific set of ideas and tests, which proved the
premises underlying the suggested practice.

Recruitment may be conducted internally through the promotion and transfer of existing
personnel or through referrals, by current staff members, of friends and family members.
Where internal recruitment is the chosen method of filling vacancies, job openings can be
advertised by job posting, that is, a strategy of placing notices on manual and electronic
bulletin boards, in company newsletters and through office memoranda. Referrals are
usually word-of-mouth advertisements that are a low-cost-per-hire way of recruiting.
Internal recruitment does not always produce the number or quality of personnel needed; in
such an instance, the organization needs to recruit from external sources, either by
encouraging walk-in applicants; advertising vacancies in newspapers, magazines and
journals, and the visual and/or audio media; using employment agencies to “head hunt”;
advertising on-line via the Internet; or through job fairs and the use of college recruitment.

2.1.7 The Changing Context of Recruitment and Selection Decisions

Much of the recent literature on personnel management has emphasized the necessity for
the recruitment and selection of employees who are committed to the goals of the
organization. Recent waves of organizational restructuring have dramatically changed
and, in many cases, destroyed existing employment relationships. As traditional
autocratic structures flatten and organizations utilize multidisciplinary teams to remain

24
competitive, the need for strategic and transparent systems becomes paramount (Bingley et
al, 2004).

Bingley et al, (2004) suggested that, increasingly, many organizations are being
transformed from structures that are built on functions and jobs, to those where focused,
self-directed work teams, made up of empowered individuals with diverse backgrounds,
are replacing traditional specialized workers. Cran, (1995) highlighted that firms need
adaptable people who can adjust to rapidly changing customer needs and operational
structures, while Burton (2001) argues that employees, and the way they work, comprise
the crucial difference between successful and unsuccessful organizations. He argues that
as technology increases and product life cycles shorten, the major source of competitive
advantage will be the individual worker. Delery and Doty, (1996) further developed this
view of the prevailing business environment and reiterated that: with the sweeping changes
in today's business climate and the rise of re-engineering to meet the needs of organizations
in the area of downsizing or cost diminution, (search) firms must be equipped to recruit
individuals who can operate in a non-structured or “virtual” organization. Even in
today's technically advanced business environment, the human factor will always be
instrumental to the success of an organization.

Furthermore, Drucker, (1999) indicates that, as companies downsize, “delayer” and try to
boost productivity with fewer people, those that remain are being asked to assume more
tasks, roles and responsibilities. He proposes that, as this trend continues, companies will
be asking fewer employees to know more, do more, change more and interact more and
thus interest is increasingly focused on identifying the recruiting sources that are most
likely to yield high quality employees and the selection methods that best predict future job
performance. Arguments such as these have led to suggestions that the critical
organizational concern today is the hiring or promoting of the best qualified people while
still meeting all regulatory requirements. A study commissioned by the IPD's Recruitment
Forum highlighted a number of common failings in the recruitment and selection process.
Included among these failings were:

a) No obvious link with HR strategy, resourcing strategy and broader business and
Organizational goals;

b) Use of referencing for short listing;

25
 c) Unclear use of structured interview design and application;

d) Increasing use of invalid prediction methods;

e) Lack of widespread monitoring and lack of remedial action in those organizations

that did monitor recruitment;

f) Lack of validation of situation specific selection procedures.

These results are suggestive of an inability or unwillingness to appreciate the strategic

imperative of effective recruitment and selection practices. Smith and Robertson (1993)
argue for greater precision in recruitment and selection and caution that a company can be
dragged to its knees by the weight of ineffective staff which decades of ineffectual
selection methods have allowed to accumulate. Smith and Robertson, (1993) further noted
that the problem of inefficiency may be as a result of a difficulty in distinguishing good
practice from common practice. Should this be the case then the problem may lie less with
the processes utilized and more with the traditional perception of what constitutes effective,
valid recruitment and selection practices. The traditional perspective on recruitment and
selection assumed a rational framework, where the largely objective qualifications of the
individual were matched to the requirements of the job (Stoner and Freeman, 1992). The
assumptions of the rational model imply that those making the decisions have real
knowledge about the job, real knowledge about the applicants' job relevant
qualifications, can objectively compare these qualifications with the job demands and select
the applicant with the best match.

However, more recently, there is growing evidence to suggest that the notion of ‘fit’ as it
relates to suitability has assumed heightened significance in organizational settings. Kersley
et al, (1997), defines ‘fit’ as the degree to which the goals and values of the applicant
match those of individuals considered successful in the organization. Kersley et al, (1997)
further highlights this notion of fit as the key to job success: Think back in your career and
ask yourself, of all the people you know who failed in a job and were terminated, how many
of them failed because they lacked the right educational degree, the right job experience, or
the right industry background? In all likelihood, most of them failed because of
inadequate interpersonal skills, an inability to communicate, or because they just didn't
fit in with the culture; in other words bad chemistry. More specifically, (Armstrong,
1991) identify the “organizational chameleon” as a corporate creature who embodies the

26
 perfect fit in terms of organizational demands for values, beliefs, attitudes and so forth,
while advocating that an organizational analysis be carried out prior to making staffing
decisions to identify the dominant values, social skills, and personality traits required of
potential job applicants. Such an approach challenges the rational model of recruitment
and selection and brings into focus the “form versus substance” issue. According to
(Armstrong, 1991), the core of this problem is associated with the difficulties involved in
distinguishing candidates who are truly qualified (i.e. substance) from those who simply
construct images of qualifications and competence (i.e. form). This problem is compounded
in a situation where candidates actively seek to alter and manage images of competence,
with the result that the decision maker is attempting to hit a moving, rather than a stationary,
target. In an attempt to explain why the rational model has limited application in the current
business environment, Delery and Doty, (1996) find three particular arguments:

(1) In an increasingly competitive environment the content of jobs may change quickly
over time, because of shifts in corporate strategies or technological innovations. Stable
person/job match is unlikely in such unpredictable organizational environments.

(2) The increasing use of self-managed teams makes it difficult to view individual jobs as the
key unit of analysis. Team members may be given the responsibility of allocating tasks
between members and engage in collective problem-solving efforts that can be more
meaningfully understood at the group level of analysis.

(3) Research has documented that person/job match may not be sufficient to achieve high
job satisfaction, commitment and job performance among employees. It is necessary
also that employee hold values that are congruent with those of the organization. Delery
and Doty, (1996) concluded that this requirement for ‘fit’ encapsulates the congruence
of the personality traits, beliefs, and values of the employee with the culture, strategic
needs, norms and values of the organization and thus reinforces the necessity for greater
empirical evaluation of the mechanisms employed to measure such characteristics

27
2.1.8 Recruitment and Selection Practices and Performance
Recruitment and selection also has an important role to play in ensuring worker performance
and positive organizational outcomes. It is often claimed that selection of workers occurs
not just to replace departing employees or add to a workforce but rather aims to put in
place workers who can perform at a high level and demonstrate commitment (Ballantyne,
2009).

Recruitment and selection also has an important role to play in ensuring worker performance
and positive organizational outcomes. It is often claimed that selection of workers occurs
not just to replace departing employees or add to a workforce but rather aims to put in
place workers who can perform at a high level and demonstrate commitment (Ballantyne,
2009).

Pilbeam and Corbridge, (2006) provide a useful overview of potential positive and
negative 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 managers who have to deal with unsuitable employees.’

Recruiting and selection is very important for the survival of every organization but that does
not end there, new recruits need to be developed 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 organizations.

2.1.9 Human Resource Development

Companies can only succeed in the long-term if they recruit and motivate people who are
able to respond to and shape the challenges of the future. These are the individuals with the
capacity to create competitive advantage from the opportunities presented by changing
markets, with the desire to learn from customers, consumers, suppliers and colleagues, and
who possess the ability to build and influence long-lasting and effective partnerships
(Walker, 1990).

The recruitment of new employees helps to demonstrate a company’s aspirations,

highlighting the skills and attitudes to which it attaches the highest priority. The choice also
provides a major opportunity to communicate the values and successes of the organization

28
– to explain why the company offers the most attractive place for a person to develop
their career. Yet this competition for top talent is nothing new; and if the challenge for
HR managers is to spot the best people and win their favour (Walker, 1990).

A well-prepared and motivated workforce is possibly the most important of the three
intangible assets to support an organization’s value creating processes. According to
Peter Drucker “The most valuable asset of a 20th century company was its production
equipment. The most valuable asset of a 21st century institution will be its knowledge
workers and their productivity (Drucker, 1999). A great deal exists in the literature about
the provision of staff development and training as investment for organizations. Staff
development and staff training are parts of the bigger concept of human resource
development (HRD). Training is just one possible way to organize and implement
learning processes in organizations and not always the most effective one.

HRD encompasses the broad set of activities that improve the performance of the individual
and teams, hence the organization. Training and development have come to be viewed as
lifelong activity, rather than the front end acquisition of qualifications. As a result, the
focus of concern has shifted from what the trainer does, to what the learner requires. The
ultimate aim of the training and development process has been characterized as the
creation of the learning organization, constantly reviewing its mistakes and successes and
adapting its activities appropriately.

The issues of workforce demographics, desirable characteristics of the workforce and the
obstacles to achieving the workforce which is well prepared, motivated and strategically
ready in today’s libraries, are key elements to be considered when discussing human
resource development.

Some of the other issues/challenges confronting human resource managers in this context
are: Do we hire for today’s needs or tomorrow’s? How can we hire for the future needs of
the library? How do we go about providing human resource development for the needs of
the organization as a whole, not just for the specific jobs people perform? These issues are
not confined to libraries. Many other organizations are also trying to deal with these
challenges.

Until recently, the focus when hiring has been more on skills, for reference, cataloguing,
IT and so on, rather than on attributes like strategic thinking, flexibility, adaptability and

29
commitment to lifelong learning. There is a growing trend now to “hire for attributes and
then train for the skills” (Whitmell Associates, 2004). The need to hire staff with
abilities such as flexibility, adaptability, leadership potential and learning agility is
increasingly recognized by human resource managers.

The process of bringing in such changes to our workplaces is not straightforward as it

affects the hiring process as well as staff development and training activities. To keep
alive the principles of training and development, all related initiatives need to be
integrated. Hiring, orientation, communication, performance reviews, and rewards and
recognition are interrelated and therefore should be linked to each other and to the training
and development programs Recruitment of staff that is flexible, strategic thinkers, multi-
skilled, open to change and responsive is not a simple, straightforward process as
identification of individuals with these skills is not as easy as identification of those with
cataloguing, reference or IT skills. Retaining these skilled people and ensuring that once
hired, they are motivated and continue to enhance the skills and attributes they had when
they joined the organization may present challenges for human resource managers. It
requires creation of an environment within the organization to ensure these happen, in
other words a “knowledge-based organization” equipped to deal with the constantly
changing environment.

2.2 Empirical Literature Review

The study by Sen and Saxena (1997) has emphasized the importance of a quality process
during the time of recruitment and hiring given that the right type of labor is hard to come
by. In fact, while lending credence to the importance of hiring quality candidates who
are hard to find Tendon (2006) warned that talent deficiency is unrelated to huge
population. While reporting that recruitment is the only component for attracting and
retaining knowledge workers, Unwin (2005) gave significance to the process involved
during the time of recruiting and hiring good candidate.

Although the study conducted by Subbarao (2006) explained the recruitment sources used
by individual job seekers at various levels, the study further highlighted the importance of
different types of approaches used at the time of recruitment which in turn makes any
organization well- established or less established. According to Sarkar and Kumar (2007)
organizational performance is hinged on the approach which the organization adopts in
the recruitment and selection of employees. To this end, Sarkar and Kumar, spoke of a

30
holistic model of recruitment i.e. emphasizing the importance of the whole process of
recruitment and the interdependence of its parts (Sinha & Thaly, 2013).

Recruitment and selection in any organization is a serious business as the success of any
organization or efficiency in service delivery depends on the quality of its workforce who
was recruited into the organization through recruitment and selection exercises (Ezeali and
Esiagu, 2010). Since recruitment and selection involve getting the best applicant for a job
(Obikeze & Obi, 2004), it has been emphasized that recruitment procedures that provide
a large pool of qualified applicants, paired with a reliable and valid selection regime,
will have a substantial influence over the quality and type of skills new employees possess
(Okoh, 2005). For Mullins (1999) the important thing is for some suitable plan to be used,
complying with all legal requirements relating to employment and equal opportunities, to
follow recommended codes of practice and to ensure justice and fair treatment for all
applicants.

2.3 Conclusion and Research Gap

To conclude, the above studies are focused on Recruitment and Selection with special
emphasis on the outcome of quality recruitment and selection practice. For instance Sen and
Saxena (1997), focused on the importance of recruitment in solving talent deficiency. On the
other hand, Subbarao (2006), Sarkar and Kumar (2007), (Sinha & Thaly, 2013) focused on
the different approaches the practice and their outcome. (Ezeali and Esiagu, 2010), (Okoh,
2005), focused on the validity and reliability of the recruitment and selection practice in
giving equal opportunity. Generally all the above studies focused on assessing what would be
the end result taking quality recruitment and selection practice, but do not assess whether the
practice itself is quality or not. Therefore this knowledge gap also motivates the researcher to
conduct comprehensive evaluation of the recruitment and selection effectiveness.

31
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction
This Chapter focuses on the research methodology in which the researcher will use in this
study. The section explains why the study adopts the case study as a research strategy. Since
the study adopted the case study approach, various methods and techniques of data collection
and analysis will be used during the fieldwork.

3.2 Design of the Study

The study is adopted by using both qualitative and quantitative research approach to obtain
the desired results of the organization and to explore detailed evidence about the problems.
According to Burns and Grove (2003:201), descriptive research “is designed to provide a
picture of a situation as it naturally happens”. It may be used to justify current practice and
make judgment and also to develop theories. For the purpose of this study, descriptive
research was used to obtain an effectiveness of recruitment and selection practice in
commercial bank of Ethiopia Dessie District.
In the course of analysing the problems, both primary and secondary data collection
procedures were employed. To achieve this goal, questionnaires and interviews were going to
be the main tools.
3.3 Data sources
In this study, both primary and secondary sources were used provided that enough
information could be obtained. The primary sources were used to get first-hand information
collected from the employees of Commercial Bank of Ethiopia working at the branches found
in Dessie town and human resource business partners’ team who are working at the District
office found in Dessie town. The secondary sources were used to strengthen the primary
sources include books, journals, and articles, human resource management manual. Internet is
also used to avoid the inadequacies of the data and extensively review as references.
3.4 Population, Sampling technique and Sample size.
3.4.1 Population of the universe
Commercial Bank of Ethiopia Dessie district was selected for the study. The population of
the study consisted of 174 employees who work in the branches of the district that are

32
found in Dessie town and the 7 human resource business partners team who work in the
district office.

3.4.2 Sampling technique

Stratified sampling technique which is a random sampling technique was used to select
respondents for the questionnaires. In stratified the sampling frame is divided in
homogeneous and non-overlapping sub groups (called “strata”) and a simple random sample
is drawn with in each sub group (Anol Bhattacherjee, 2012). The stratified sampling
technique was used for the purpose of this research, basically because taking a sample from
each division will make the sample highly representative and avoid biasedness in selecting
each sample and to keep the proportionality of the sample from each branch. Therefore the
researcher has used stratified sampling technique to select employees for the questionnaire.
And a purposive sampling which is a non-probability sampling technique was also been used
to select respondents for the interview who deal directly with recruitment and selection
from the human resource business department of Commercial bank of Ethiopia Dessie
District Office. This is because the researcher wanted to deal with only typical cases
based on the objectives of the study.

3.4.3 Sample size

In order to take the appropriate sample size from the seven (7) branches the researcher has
used the formula of sampling according to Kothari, 2004.

In order to get the actual sample size from the total target population the researcher has
employed the formula as follows, by slightly adjust the fraction in to significant digit

fn = n
1+n/N
n = z2pq = (1.96)2(0.5)(0.5) = 3.8416 x 0.25 = 384.16 = 384
d2 (0.05)2 0.0025

fn = n = 384 = 120 will be the sample size of the study

(1+n/N) 1+384/174

33
 Where N = the estimate population size

n = the sample size when the population greater than or equal to 10,000

fn = the desired sample size when the population is less 10,000

z = the standard normal variable at required level of confidence (standard

normal deviation)

p= the proportion in the target population estimate to have characteristic being

measured
q = 1-p

d = the level of statistical significant set

From the target population only 120 employees was selected to question by using simple random
sampling. The sample has been distributed to each branch based on their proportion as follows.

Table 3:1: Sample Size

S. No. Category of Employees Population of each Sample proportion Sample Size

Category
n/N (126/174)

1 Ayteyef 14 0.69 10

0.69
2 Buanbua Wuha 19 13

0.69
3 Dawudo 15 10

0.69
4 Dessie 64 44

0.69
5 Gerado 14 10

0.69
6 Mugad 28 19

0.69
7 Tossa 20 14

Total 174 120

Source: Researcher field survey, 2019

3.5 Instruments of Data Collection

Questionnaires and interview were the main data gathering instruments. This was because of
the need to collect adequate data and for triangulation purpose. Therefore, employing

34
multiple data collection instruments may help the researcher to combine, strengthen and
amend some of the inadequacies of the data and for triangulating it (Cress well, 2003).
To undertake the study both primary and secondary data were collected.
Secondary data was collected from different sources including journals, Company manuals,
books, and online from internet sources.
Primary data was collected from the participants using interview and questionnaire. Close
ended and open ended type of questionnaires were used to gather data from the respondents
on the respondents’ demographic information such as age, sex, educational level, working
experience, job position. And information relevant to analyse the effectiveness of recruitment
and selection practice of Commercial Bank of Ethiopia Dessie District

3.6 Analysis of Data

Before analysis of the data collected using primary sources (especially through closed –ended
questionnaires), they were checked for accuracy, utility and completeness, compatibility with
the purpose of the study and the interviews & open-ended questionnaire responses were also
organized in a way to complement/supporting the quantitative analyzes after they were
arranged depending on the intended objective and responses accepted.
The data gathered through closed- ended questionnaires were analyzed and presented using
SPSS version 20 as descriptive statistics, through figures, graphs, tables and percentages. And
the data collected through open-ended questionnaires and interview also analyzed
qualitatively by supporting the quantitative analysis.
For the purpose of reducing chance of confusion of questionnaires and ensuring those for
validity and correctness some pilot tests were taken by distributing the questionnaires and
some irrelevant and redundant questions were reduced before actual distribution of the
questionnaires.

35
 CHAPTER FOUR
4 Presentation, Analysis and Interpretation of data
4.1 Introduction
This Chapter deals with the presentation, analysis and interpretation of the data collected
through questionnaires and interview. The questionnaire consists of four sections which are
both multiple choices and open ended ones. Section 1 focused demographic information of
the respondents; Section 2 focus on recruitment practice, selection practice and competency
assessment and the challenges of recruitment and selection practice, and suggestions for
improvement. A copy of the questionnaire is included in the Appendix A of this paper.
In order to understand the effectiveness of recruitment and selection practice of Commercial
Bank of Ethiopia Dessie District, structured questionnaire were distributed to clerical
employees working in the organization under the study. The questionnaire distributed and the
response rate from each branch found in Dessie town is shown in the table 4.1 below. For the
purpose of reducing chance of confusion of questionnaires and ensuring those for validity and
correctness some pilot tests were taken by distributing the questionnaires and some irrelevant
and redundant questions were reduced before actual distribution of the questionnaires.
And also after questioner collected the reliability of the question was:
Table 4.1Questionnaire response rate by Branch
Organization Number of questionnaire Number and percentage
Distributed Returned
Ayteyef Branch 10 10
Buanbua Wuha Branch 13 13
Dawudo Branch 10 10
Dessie Branch 44 44
Geraldo Branch 10 10
Mugad Branch 19 19
Tossa Branch 14 14
Total 120 120
Source: Researcher field survey, 2019

According to Sekaran (2001), a response rate of thirty percent is acceptable for most studies.
The response rate for this study was 100% which fully is sufficient.

36
4.2 Awareness of Human resource Team on the Importance of effective
Recruitment selection practice
The researcher has interviewed four human resource business officers and Human resource
business manager of Commercial Bank of Ethiopia Dessie District Office. From the interview
they have explained that they before three months they have taken trainings on Human
resource aspects especially on recruitment and selection process by the title “Competency
based recruitment and selection process” and “Competency Based Interview” by the trainers
from “Frankfurt School of Finance and management” who are from German. They explained
that they are highly aware by the training. They also mentioned that the new concept of
“Competency based recruitment and selection process” and “Competency Based Interview”,
is not implemented yet. But the time it is implemented the recruitment and selection of the
bank will become very effective.

4.3 Effectiveness of Recruitment Practice

Five items were used under in this category. These include the vacant post announcement
media, criteria for the vacant post, qualified job seekers hindered from applying to the vacant
post, criteria that hinders qualified job seekers from applying, and the age work experience
relationship.
Table4.2: Announcement of the vacant post

Frequency Percent
Notice board 108 90
Radio 0 0
Television 0 0
Magazine 0 0
Other(s)(friends) 12 10
Total 120 100
Source: Source: Researcher field survey, 2019

As we can observe from table,4. 2, 108 (90%) of the respondents have said they have got the
information on the vacant post they applied to be recruited in the organization on a Notice
board, the rest 12 (10%) were responded by saying “other(s)” and other options is specified in

37
the questionnaire as from friends, and there is no (0%) respondent for all three choices which
are television, radio, and magazine.
This clearly shows that the Bank uses only notice boards found in Dessie town for vacancy
announcement. But according to Costello (2006) recruitment is described as the set of
activities and processes used to legally obtain a sufficient number of qualified people.
Table4.3: Requirements to apply for the vacant post
Frequency Percent

Educational Qualification 9 7.5

Experience 0 0

Age 5 4.2

Cumulative GPA 10 8.3

Two or more(Educational 96 80
qualification, Age, CGPA)

Total 120 100

Source: Researcher field survey, 2019

From table 4.3, we can observe that from 120 respondents which are asked about the
recruitment criteria, 9 (7.5%) has chosen educational qualification, no (0%) respondent chose
experience, 5 (4.2%) chose age, 10 (8.3%) said cumulative GPA, and the rest 96 (80%)
answered “Two or more” and they specified it in the questionnaire as educational
qualification, age, and cumulative GPA. Though the other criteria are justifiable, age is just a
hindrance to quality recruits. Odiorne (1984) indicated that the quality of new recruits
depends upon an organization's recruitment practices.
Figure 4.1: Qualified job seekers who were not able to apply because of the criteria

38
Source: Researcher field survey, 2019

From 4:1 it is shown that for the question whether the respondents know or not a person
believed to be a qualified candidate hindered from applying to be hired in the organization 85
(70.83%) responded yes and the remained 35 (29.17 %) responded the opposite. This
indicates that majority of the respondents agreed that there is a qualified human resource pool
out there, who could not join the bank because of the recruitment practice.
Table4.4: Requirements to that hindered qualified candidates
Frequency Percent

Educational qualification 8 6.7

Experience 0 0

Age 11 9.2

CGPA 11 9.2

Two or more(Educational 55 45.8

qualification, Age CGPA)

None 35 29.2

Total 120 100

Source: Researcher field survey, 2019

From table 4.5 for the question about the criteria that hindered the qualified candidates, 8
(6.7%) responded educational qualifications, no (0%) responded experience, Age or
cumulative GPA responses were given by 11(9.2%) of the respondents each, 55(45.8%)
responded “Two or more” which is specified as the combination of educational qualification,
age, and cumulative GPA. From the above figure we can understand that there are barriers

39
 like age which seems to be a hindrance to matured and experienced people to join the bank.
Jovanovic (2004) said recruitment is a process of attracting a pool of high quality applicants
so as to select the best among them.

Table4.5: Age and work experience cross tabulation

Work Experience Total

<1Year 1-6Years 7-12 12-18 >=19

Years years

Age 18-28 Ye1rs old 5 86 1 0 0 92

29-38 Years old 3 16 6 0 0 25

39-48 Years old 0 0 0 1 0 1

>=49 Years old 0 0 0 0 2 2

Total 8 102 7 1 2 120

Source: Researcher Survey, 2019

From table 4:5 we can observe that there is no (0%) of respondents that have a work
experience between 0-12 with the age 39 and above years old, and at the same time there is
also no (0%) respondents with the age of 49 and above that have a working experience below
19 years. This age versus work experience table indicates the banks trend of accepting only
candidates below the age of 35.

4.4 Effectiveness of Selection Practice

It is often claimed that selection of workers occurs not just to replace departing employees or
add to a work force but rather aims to put in place workers who can perform at a high level
and demonstrate commitment (Ballantine, 2009).
Recruitment and selection is one of the fundamental functions of human resource
management. Selecting and hiring competent employees is one of the most important aspects
in the organization that cannot be ensured without effective selection practice.
Table 4:6 The kind of assessment method used

Frequency Percent

Test 1 0.8
Interview 3 2.5

40
Work Sampling 0 0
Other(S) 0 0
Two or more(test and 116 96.7
interview)
Total 120 100
Source: Researcher field survey, 2019

Table 4:6 shows for the question asked about the kind of assessment method used, 1(0.8%) of
the respondents answered test, 3(2.5%) responded, interview, No (0%) responded work
sampling, and the remaining which are the majority or 116(96.7%) of the respondents has
chosen “Two or more” and specified their response as Test and Interview. From the above
figure we can understand that test and interview are the only assessment tools. They reported
a general trend towards structured interviews in all countries and, while the general
validity and acceptability of methods such as work samples, group exercises and
assessment centers were widely recognized, reported usage of these methods was infrequent
(Miyake, 2002).

41
Table 4:7 Work experience and the kind of assessment method used

What kind of assessment method(s) Total

does Commercial Bank of Ethiopia
Use?

Test Interview Two or

more(Test
and
Interview)

Work >=19 0 2 0 2
Experience
12-18 0 1 0 1
years

7-12 Years 0 0 7 7

1-6Years 1 0 101 102

<1Year 0 0 8 8

Total 1 3 116 120

Source: researcher field survey, 2019

Table 4:7 shows that 2 employees with a working experience of 19 and more and 1 with the
working experience between12-18 have said the assessment method was only Interview, the
other 101 and 8 respondents with the working experience of 1 and less and between 1-6 years
respectively have responded the assessment method was both interview and test. This shows
even previously the bank used only interview as an assessment tool.
4.5 Competency Assessment
The items included in this category includes the type of test, the type of interview questions,
Interview questions and core values of the bank, interview questions and behaviour of the
candidates, Job description and the new entrants, reasons for not receiving of job description,
general features of the jobs in the Bank, competencies of new entrants on the basic works of
the bank, source of basic competencies of entrants, rating of the recruitment and selection
practice of the Bank by the respondents in General.

42
Table4:8: The type of Test given
Types of tests Frequency Percent
Academic 12 10
Aptitude 79 65.8
Job related 0 0
Others 0 0
Two or more(Academic and 26 21.7
Aptitude)
None 3 2.5

Total 120 100

Source: Researcher field survey, 2019

Table 4:8 presents that 12(10%) of the respondents explained they have taken academic type
of test, 79 (65.8%) responded aptitude, 26 they both aptitude and academic type of test, there
is no (0%) respond for job related and other type and 3 (2.5%) of the respondents answered
they have taken no test. From the above figures it is clear that the test was focused on
academic and aptitude type of questions.
Table; 4:9: The kind of test versus work experience

If Your answer for Question number 10, includes test Total

What kind of test have you taken?

Academic Aptitude Two or None

more (
academic
and
Aptitude)

Work <1Year 1 7 0 0 8
Experience
1-6Years 9 69 24 0 102

7-12 2 3 2 0 7
Years

12-18 0 0 0 1 1
years

>=19 0 0 0 2 2

Total 12 79 26 3 120

43
Source: Researcher field survey, 2019

Table 4:9 Shows that 2 respondents with a work experience of 19 and above and one
respondent with an experience of have responded that they had not taken a test which has a
resemblance with the one stated on table 4:7, which showed before some years the bank uses
only interview as an assessment tool.

Table 4:10 The Type of interview question asked

Content of Interview Frequency Percent
Academic 20 16.7
Aptitude 17 14.2
Job related 3 2.5
Other(s) 1 0.8
Two or more 79 65.8
Total 120 100

Source: Researcher field survey, 2019

Table 4:10 presents 20 (16.7%) of the respondents answered the type of the interview
question was academic, 17 (14.2%0) responded aptitude, 3(2.5%) responded Job related, 1
(0.8 %) has responded other than the listed ones and specified it is, about personal life
history, 79 (65.8 %) has responded two or more of the above mentioned and most of them
have chosen academic and aptitude. This indicated the content of the interview questions
were academic and aptitude.

Table: 4:11Test against the Bank’s values

Frequency Percent

Yes 17 14.2

No 103 85.8

Total 120 100

Source: researcher field survey, 2019

From table 4:11 Majority of the respondents which are 103(85.8%) have responded they have
not taken a test that measures their personality according to the Bank’s values, the rest 17

44
(14.2) responded they have taken the test. And the test they have mentioned are interview
questions and they are summarized and listed as follows:

 “What are the values of the Bank?”

 “What is integrity?”

 “Can you work in a team?”

 “What is communication?

 “Do you have any bad habit?”

 “What do you know about customer handling?”

This clearly indicates candidates were not tested fitness to the values of the bank instead they
were asked about the values.

Table 4:12 Test of personal behaviour

Frequency Percent
Yes 12 10
No 108 90
Total 120 100

Source: Researcher field survey, 2019

Table 4:12 presents that 12(10%) of the total respondents answered they have taken a
behavioural test, and the rest majority, 108(90%) responded they have not taken it, and those
who said they have taken the exam have mentioned the interview questions here under:

 “Do you know that the bank has a dressing code?”

 “Do you have a patience that can help you to handle customers?”

 “Do you have any bad habit?”

 “What is your weakness?”

 “What is your strength?”

45
  “Do you have self-confidence to stand in front of people?”

 “What is your hobby?”

 “Mention the behaviors of a banker?

This clearly indicates candidates were not tested for their behavior instead they were asked
about their behavior. Cran (1995) suggests that developments in the realm of selection lend
some support to those who propound the HRM thesis, where a key feature has been
the increase in testing designed explicitly to assess behavioral and attitudinal
characteristics.

46
Figure 4:2 Job description

Source: Researcher field survey, 2019

Figure 4:2 describes the number of respondents who have said they have received and those
who said have not received a Job description. And 30(25%) have responded they have
received it and the rest 90 (75%) have responded they have not received it. This indicates
majority of the respondents did not receive the Job description on time.
Table 4:13: The reason for receiving or not receiving a Job description.
Frequency Percent
No job description 6 5
Supervisors forget to do so 45 37.5
I have no idea 39 32.5
None 30 25
Total 120 100
Source: Researcher field survey, 2019

From table 4:13 which presented the reasons for not receiving the Job description, 6 (5%) of
the respondents responded there is no job description, 45(37.5%), responded the supervisor
forget to do so, 39(32.5) responded that they have no idea, the rest 30(25%) had no reasons
because they have mentioned they have received the job description as presented on Table
4:14 above. This clearly indicates most of the supervisors forgot to give the job descriptions.
The job description provides indications of the duties to be undertaken, and the job
specification usually prescribes relevant personal qualities and attitudes as well as skills and
knowledge required for the job (Johnston, 1999).

47
48
Figure 4:3: Basic competencies for the banking work

Source: Researcher field survey, 2019

Figure 4:3for the question they have asked whether they have the basic competencies for the
banking work before they have joined the Bank, 14(11.7%) responded they had and the
remaining 106(88.3%) responded they had not. This indicates most of the respondents had
not the basic competencies when the first joined the bank.

Table 14:14 Sources of basic Competencies

Frequency Percent
Training 37 30.8
Asking from Colleagues 14 11.7
Other(s) 4 3.3
Two or more 51 42.5
None 14 11.7
Total 120 100
Source: Researcher field survey, 2019

Table 14:14 shows from those who responded they had no basic competencies for the
banking work before they have joined the Bank (on table 14:16), 37(30.8%) responded they
have got the basic competencies from training, 14(11.7%), Just by asking colleagues, 4(3.3%)
responded by trial and error, 51 (42.5%) responded more than one way of the above
mentioned, and the rest 14 (11.7%) responded none, which means they have already
mentioned they had the competencies on table 14:16. From this we can understand that most

49
of the respondents get basic competencies from training and more than one way of the above
mentioned.

50
Table 14:15 The General rating of the recruitment and Selection Practice of the Bank

Frequency Percent

Very strong 5 4.2

Strong 14 11.7

Medium 31 25.8

Weak 49 40.8

Very Weak 21 17.5

Total 120 100

Source: Researcher field survey, 2019

Table 14:15 is Likert scale type of rating of the recruitment and selection practice of the
Bank. 5 (4.2%) of the respondents rated it as very strong, 14(11.7%) rated strong, 31(25.8%0
rated medium, 49(40.8%) rated weak, 21(17.5%) rated weak. And they have justified their
rating as follows. This indicates most of the respondents rate the banks recruitment practice
as weak and very weak.
Table 14:16: Justifications of the rating

Rating No. of Justifications

Ratters

Very Good 5 -Merit based

-Fair and no discrimination

Good 14 -Decentralized, before years it was held at head office.

Medium 31 -Not uniform among all districts of the bank.

-Delayed in processing.

Weak 49 -It is dependent on CGPA

-Does not measure the individual competency

Very Weak 21 -the ratters’ skill is in question.

51
 -Stereo type

-Subjective

-Aptitude test is all about the IQ, not job related.

Total 120
Source: Researcher field survey, 2019

Table 4:16: Shows the Justifications of the respondents on their rating of the general rating on
the recruitment and selection practice of the bank. The justification was not given most
ratters, and some justifications are difficult to understand and more over some justifications
are repeated. The above mentioned ones are the summarized ones.
4.6 Challenges of Recruitment and Selection Practice

Table 4:17 Challenges of Recruitment and Selection practice

Frequency Percent
Yes 104 86.7
No 16 13.3
Total 120 100
Source: Researcher field survey, 2019

Table 4:17 shows 104(86.7%) of the respondents responded that there are challenges on
recruitment selection practice of the Bank, and 16 (13.3%) responded, No challenge. And
those who said there are challenges have explained the challenges and the challenges
explained by the respondents are summarized and presented as follows:
 Announcement of the vacant post only on the notice board.

 Commonly only two recent years graduates are invited.

 No affirmative action has been taken for female or handicapped candidates.

 The human resource manual is not strictly followed.

 The Bank does not have its own examination center.

 The written examination (test) is outsourced to Addis Ababa University but the
examiners at the examination centers are the bank employees.

52
 CHAPTER FIVE

5 Summary of Findings, Conclusion and Recommendation

The main objective of this research has been to assess the effectiveness of recruitment and
selection practice of Commercial Bank of Ethiopia Dessie. To obtain the data, questioners
and interview techniques were employed. And based on the presentation, discussion and
interpretation of the data obtained, this chapter summarizes the major findings of the study,
makes conclusions that are drawn from the findings of the study and then forwards possible
recommendations.

5.1 Summary of Findings

 Majority of the respondents of the questionnaires responded that they have found the
information about the vacant post they applied to join the bank as junior officer was
on notice board and the rest from friends. And from the interview it is found that the
vacancy announcement for external applicants is announced on the banks notice
board found in front of Dessie branch and on the public notice boards on Dessie
branch. And the duration is stated in the human resource management procedure
manual as: “application of the vacancy shall be received for minimum of 5 working
days. The time frame will, however, increase depending of the availability of
applicants’ pool.”

 From the interview it is also found the bank does not disclose the benefit packages
for the post on its vacancy announcement. On the human resource management
procedure it is clearly stated what must be included on the vacancy announcement:
position title, major duties and responsibilities, qualifications and experiences
required, duty station, information related to remuneration, application procedure,
closing date of application, information about examination and/or interview, (if any);
and other relevant information. Though it is stated on the procedure manual to
disclose information about the remuneration, as it is understood from the interview it
has never been disclosed.

 It is also found that the District human resource business partners’ team has well
trained by trainers from abroad on recruitment and selection process before about six
months, in the interview; they have explained that they have got new insight on the
process. But it is not implemented yet.

53
 It is found that respondents responded that they know friends who would perform
well and but hindered from applying because of their age. And from the interview
vacancy announcement are for applicants who are below 35 years old thirty five.

 It is also found that from the respondents, competency assessment methods are only
interview and test, there are no other methods used.

 It is found that the all of the written exam (test) and interview questions have
academic and aptitude content. More over candidates are not tested for behavior
instead they are sked about their behavior as it is mentioned in by the respondents:
“what is your strength and weakness? What are the values of the bank? Etc…). And
in the banks’ human resource procedure manual it is clearly stated about the test as:
“Written examination for professional posts shall focus on the required field of
study.” Even in banks human resource management procedure it is written about
interview as “If the applicants are less than ten, the bank can use interview, to screen
applicants, considering the cost-benefit of providing exam.

 It is also found that the bank always outsourced the written exam to Addis Ababa
university but does not have its own standardized examination center and as well as
professional examiners the test is conducted by its staffs and two supervisors from
Addis Ababa University .

 It is also found that all job posts have Job descriptions but the supervisors does not
give them for new entrants. As it is investigated from the response of the
questionnaires, it is mostly because of the supervisors’ negligence.

 From the respondents of the questionnaire, it is also found that the majority of the
respondents didn’t have basic competencies for the bank work when they had first
joined the bank, and they had no training any training before starting the new job
except the half day induction about the overall atmosphere of the bank.

 It is also found that the new entrants have gotten their basic competencies for the
bank work by asking their colleagues and by trial and error method.

 Most respondents rate the general recruitment practice as “weak.’

54
5.2 Conclusion
There is no company in the world without human resource. And attracting competent
employee is the central need of every organization. Recruitment and selection practice is the
only way of attracting and employing competent employees to an organization. It is a crucial
component of human resource management that contribute a lot for the productivity and
development of a company. So adopting and implementing effective recruitment and
selection practice is an uncompromised issue for every organization.

This study assesses effectiveness of recruitment practice in the case of Commercial Bank of
Ethiopia Dessie District. The study also identifies the awareness of the human resource
business partners’ team on the importance of recruitment and selection practice, the
challenges, and suggestions that can contribute for the improvement of the practice. To
achieve this study both primary and secondary data were used .The primary data was
obtained through questioners and interview. The questioner was prepared specifically for
human resource business partners’ team. In addition the secondary data was obtained from
human resource management manual of the bank, documents, books, and internet.

From over all response of the respondents it is clear that the overall recruitment and selection
practice of the bank is not effective. First of all the bank vacancy announcement practice is
very weak when compared to its financial capability. Commercial bank of Ethiopia is a
leading bank of the country it will not have any financial problem to use any media to
announce the posts. Using notice board which is found only in Dessie town has very poor
accessibility for the applicants. Even the duration mentioned for the vacancy announcement
in the procedure manual which is five days is very limited. To employ competent candidate
accepting many and diversified applicants is very helpful.

In the announcement part, although procedures explained to disclose the information about
the remuneration, it is not practically explained in the vacancy announcement. Commercial
Bank of Ethiopia is one of the few organization with an interesting benefit package. Not
using the potential it has make the practice weak.

The human resource management team has a very good knowledge on recruitment selection
practice because they have been trained by internationally known consultant firm. But their
knowledge is dormant since they have not practiced it yet.

55
The requirement of the age below 35 hindered well experienced and matured applicants from
joining the bank, the type of exam that is only about academic, which is like examining
candidates for what they have already certified, is meaningless because they are already
screened by their CGPA. The interview is also not measuring the applicants behavior asking
about behaviour is not examining behaviour. It is good practice to outsource the examination
but if the examination center and the examiners are not standardized the outsourcing would
be useless. Because there may be cheating at the exams and not only incompetent candidates
but also cheaters may join the bank.

It is also clearly stated by the respondents that they had not basic competencies for the bank
work. Moreover has no any training for new entrants with no banking competency. The half
day induction program has no value for the new entrants who are not familiar with even for
the banking terminologies. More over the new entrants does not receive their Job description
because of the negligence of their supervisors; they simply train themselves without a clear
awareness of what is expected from them. Moreover they have explained they are trying to
grasp the basic competencies just by asking their friend and trial and error methods. These
shows the bank is not working as expected because it is only nine years remaining to become
a world class commercial bank.

5.3 Recommendations
The following recommendations are suggested and can be utilized to improve the
effectiveness recruitment and selection practice of Commercial bank of Ethiopia Dessie
District.

 The researcher recommend the bank to use another vacancy announcement media to
attract many and diversified applicants who can be filtered by any means needed,
otherwise incompetent employees may be employed because of shortage of
applicants.

 Announcing the benefit package as it is stated in the procedure manual is very

important. Since the bank has attractive package it may be used as an instrument of
attracting so many applicants.

 It is very important to implement or bring in to practice the theoretical knowledge that

the human resource business partners gained from the international trainers from

56
 abroad. The practice may not only help the bank but help the organizations in the
country practice international standard recruitment and selection practice.

 The researcher recommends the Bank to avoid the age floor of 35 years old, because
it may be helpful to the bank to attract and hire experienced and matured employees.

 The competency measurement is very narrow and traditional there are many and
modern way of measuring competency other than test and interviews like competency
based interview, personality testing , work sampling and so on, are recommended to
be implemented. Even in our country private banks are using employee referral way
of hiring, which they use it to take experienced employees from Commercial Bank of
Ethiopia itself.

 Instead of asking about the behavioral expectation and values of the bank, it is
advisable to test behavior of the candidate using different ways of testing like work
sampling and personality testing and by asking references about the behavioral
aspects of the candidate.

 The exam center should be standardized and the examiners have to be qualified in
order to avoid cheating at the exam center.

 Before starting the job it may be helpful to train the beginners for the basic
competencies the job demands. And giving the Job description at the right time may
also help the new entrants to know what is expected from them and try their way of
self-improvement.

57
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w.w.w.combanketh.et

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62
 Appendix I
LEADSTAR COLLEGE OF MANAGEMENT AND LEADERSHIP
FACULTY OF BUSINESS AND LEADERSHIP
MBA DISTANCE PROGRAM

Questionnaire for staff (or Employee)

This questionnaire is designed to gain understanding of recruitment and selection practices at
Commercial Bank of Ethiopia Dessie District. Kindly complete this questionnaire as
objectively as possible. The information given out is solely for academic purpose and would
be treated as confidential. All the questions about recruitment and selection practice are about
the external one. Thank you.
Write or mark (X) the appropriate response to each of the question.
Section A: Personal Data
1. Sex
Male ( )
Female ( )
2. Work experience in the Bank.
a. Less than 1 year ( )
b. 1-6 years ( )
c. 7-12 years ( )
d. 12-18 years ( )
e. More than 19 ( )
3. Educational level
a. 1st Degree ( )
b. Diploma ( )
c. 2nd Degree ( )
d. Other (s) specify…………………………………
4. Your Job title?
a. Junior Officer ( )
b. Customer Service Officer ( )
c. Senior Customer Service Officer ( )
d. Senior Branch Controller ( )
e. Customer Service Manager ( )
f. Branch manager ( )

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 g. Other Specify ………………………..
5. Age
a. 18-28 years old ( )
b. 29-38 years old ( )
c. 39-48 years old ( )
d. 49 and above ( )

Section B: Effectiveness of Recruitment Practice

6. Where do you get the information about the vacant post you applied to be recruited In
Commercial Bank of Ethiopia?
a. Notice board ( )
b. Radio ( )
c. Television. ( )
d. Magazine ( )
e. Other(s) specify………………………………………………………………
7. What were the requirements to apply for the vacancy post?(you may select more than
one)
a. Educational Qualification ( )
b. Experience. ( )
c. Age ( )
d. Cumulative GPA ( )
e. Other(s) Specify………………………………………………………………….
8. Do you know any person who was eager to apply for the post and who you think
would perform well but was not able to apply because of the criteria required?
a. Yes ( )
b. No ( )
9. If your answer for Question number 8. Is “yes” what was the criteria that hinders the
person from applying for the vacant post? (you may select more than one)
a. Educational Qualification
b. Experience ( )
c. Age ( )
d. Cumulative GPA ( )
e. Other(s) specify……………………………………………………………………..

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Section C: Effectiveness of Selection practice and competency assessment
10. What kind of competency assessment method does Commercial Bank of Ethiopia
used? (you may select more than one)
a. Test ( )
b. Interview ( )
c. Work sampling ( )
d. Other (s) specify………………………….
11. If your answer for question 10, include “Test” what kind of test have you taken? (you
may select more than one)
a. Academic ( )
b. Aptitude ( )
c. Job related ( ) Specify……………………………………………………
d. Other (s) specify………………………………………………………………..
12. If your answer question number 10, include “Interview”, what kind of interview
question have you been asked? (you may select more than one)
a. Academic ( )
b. Aptitude ( )
c. Job related ( ) Specify………………………………………………………
d. Other (s) specify……………………………………………………………………
13. Was there any interview question that can measure your competency against the
bank’s core value?
a. Yes ( )
b. No ( )
14. If your answer for question number 13 is “Yes” mention
…………………………………..
15. Was there any kind of test that can identify behaviour?
a. Yes ( )
b. No ( )
16. If your answer for question number 15 is “Yes” mention
………………………………………………………………………………
17. Have you received a Job description before you started the Job?
a. Yes ( )

65
 b. No ( )
18. If your answer for question number 17 is “No” what do you think is the reason
a. There is no Job description ( )
b. The Supervisors forget to do so ( )
c. I have no Idea ( )
d. Other (s) specify………………….
19. What kind of work are you working by now? (you may select more than one)
a. Cash ( )
b. Accounting ( )
c. Customer handling ( )
d. Foreign banking. ( )
e. Other (s) mention………………………………………………………

20. Do you think you had the basic competencies like customer handling, bank
accounting etc. before you have joined the bank.
a. Yes ( )
b. No ( )
21. If your answer for question number 20 is “No” from where do you get those basic
competencies you have now? (you may select more than one)
a. From training ( )
b. Mentoring ( )
c. Coaching ( )
d. Just by asking from colleagues ( )
e. Other(s) specify………………………………………………………………….
22. How do you rate the recruitment and selection practice of Commercial Bank of
Ethiopia Dessie District?
a. Very strong ( )
b. Strong ( )
c. Medium. ( )
d. weak ( )
e. very weak ( )

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23. Would you justify your rating on question number 22,
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
……
Section D: Challenges of Recruitment and Selection Practice

24. Have you observe any challenge on recruitment and selection practice of Commercial
Bank of Ethiopia Dessie District?
a. Yes ( )
b. No ( )
25. If “Yes” for 24, what are the challenges?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…
26. Suggest, if any, that you think is helpful to improve the recruitment and selection
practice of Commercial Bank of Ethiopia Dessie District?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………...

Thank you for your cooperation

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 Interview Questions
1. Explain your recruitment and selection practice in general.
2. Have you ever take any training on recruitment and selection process?
3. How do you announce external vacancy?
4. What kind of jobs are announced externally at your level?
5. How many junior officers do you hire yearly on average?
6. What are the requirements to apply for the post of junior officer?
7. Do you mention the benefit package on the vacancy announcement?
8. Do you make any affirmative action for females?
9. Do you have a job description for all jobs in the bank?
10.Do you need experienced candidates for junior officers?
11.Do you use other kinds of testing the candidates other than written
examination (aptitude test) and interview?
12.Do you train new beginners before they first start their new job?
13.Where do you give written examinations, who are the examiners at the
examination centres?

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