evaluation of recruitment methods-changae

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EVALUATION OF RECRUITMENT METHODS: A CASE STUDY OF SELECTED

BANKS IN DODOMA MUNICIPALITY


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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

There is little dispute recently that the success or failure of most organizations lies in the

competitiveness of their human resource. As such, Human Resource Management

HRM! has made a transition from a state of insignificance to one of strategic importance

academically and "usiness #ise $ago, 1%%&!. The current disposition of HRM is

largely associated #ith the drastic expansion of "usinesses glo"ally, technological

innovations and fierce competition that characterizes the environment in #hich

"usinesses operate today and the 'hanaian "usiness environment is no exception to this

glo"al development. 'hana, a country once characterized "y political and economic

insta"ility has recently developed into one of the fastest gro#ing economies on the

African continent and is gradually developing into the financial hu" of (u" (aharan

Africa.

The li"eralization of the "an)ing sector in *00+ #itnessed the proliferation and influx of

many "an)s into the country. onse-uently, the "an)ing sector has significantly

"een transformed and continued to improve #ith ne# regulations and guidelines

see)ing to maintain sta"ility. ith t#enty/six "an)s in operation, the sector has "ecome

more efficient, innovative, competitive and profita"le. t is therefore a step in the right

direction to vie# recruitment practices in some selected emerging and vi"rant "an)s in

the country. The selected "an)s include 'uaranty Trust an) 'hana! 2imited,

Agricultural 3evelopment an) 2imited and arclays an) 'hana 2td.

The recruitment and selection process is one of the most important HRM function at

those "an)s as it is the point of entry into the "an)s and also #here the "an)s recruit

talents that drive their goals and interest.


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To this end, "an)s must "e interested in attracting a larger pool of 4o" candidates "ecause

it #ill provide them a higher chance in hiring -ualified employees. n lieu #ith this,

many studies have "een conducted on different recruitment strategies ayne, *00*5

al)er, 1%%*5 6ador 1%%&. n order to attract more and "etter 4o" applicants, it is

important for "an)s to choose a method that fit into their gro#th and expansion

o"4ectives, and #hich "ear a lo#er cost of recruitment for each candidate.

t is therefore a step in the right direction to examine the various techni-ues employed

"y these "an)s in recruiting their staff to gain competitive advantage

1.2 STATEMENT OF THE PROBLEM

The success of organizations in this modern "usiness environment depends on the

cali"re of the manpo#er that steers the day to day affairs of the organizations. The

process of recruiting and selecting all categories of employees into "oth private and

pu"lic companies has "een a matter of concern to many and needs attention. 7ven

though it is the #ish of every organization to attract the "est human resource in order

to channel their collective effort into excellent performances, unconventional selection

practices can mar any "usiness plan.

3e enzo et, al. 1%%8! #rote9 :Recruitment is that set of activities an organization

uses to attract 4o" candidates #ho have the a"ilities and attitudes needed to help the

organization achieve its o"4ectives;. The recruiting efforts thus consist of #here to

search source! and ho# to notify applicants of positions methods!.

t is an undenia"le fact that most recruitments in Tanzania lac)s credi"ility and often

influence "y nepotism, "ri"ery and corruption, as #ell as the much tal) a"out #hom

you )no#; culture the practice #here"y people recommend their o#n relatives and

friends to "e employed "y their organizations!. onse-uently, s-uare pegs are put in


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round holes, resulting in poor service delivery. The recruitment and selection

procedure therefore "ecomes a formality as opposed to an o"4ective means to ensure the

selection of the "est andidates fit for the 4o". As in a s tud y done " y edia)o

*00


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1.3 RESEARCH OBJECTIVES

The general o"4ective of the study is to examine the various recruitment methods in the

"an)ing industries=sector in Tanzania.

The specific o"4ectives of the study are as

follo#s9

1. To identify recruitment activities of the "an)s understudy

*. To evaluate the effectiveness of the recruitment methods of the selected "an)s.

+. To identify the o"stacles to effective recruitments in the "an)s.

8. To provide recommendations for improving recruitment practices in the selected

"an)s

1.4 RESEARCH QUESTIONS

n vie# of the pro"lems associated #ith recruitments in Tanzania, the research

-uestions #hich this study hopes to find ans#ers include the follo#ing9/

1. hat are the recruitment methods adopted "y the selected "an)s>

*. Ho# effective are these methods>

+. hat are the o"stacles to effective recruitment in the selected "an)s>

8. Ho# can recruitment practices "e enhanced in those "an)s>

1.5 SIGNIFICANCE OF THE STUDY

?ver the years, the "an)ing industry has played a ma4or role in most economies hence

the importance attached to its practices, policies and general issues that concerns it

3elany, *00+!. The "an)ing industry provides the payment services and financial

products that ena"le "usinesses to gro# and expand. Thus, "y providing investment

opportunities, extension of credit and ris) management, they contri"ute significantly to


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the gro#th of economies.

an)ing institutions occupy a central position in Tanzania@s financial mar)et and are

catalytic agents in the development process of the country. Thus any study that see)s

to improve the "an)ing industry also see)s to improve the economic #ell/"eing of

the country. The study is important to the "an)ing sector in particular and the

Tanzanian economy as a #hole. The findings and recommendations of this study #ill

provide a frame#or) for the adoption of sound recruitment practices in the "an)ing

sector in Tanzania. The study #ill also "e "eneficial to the academic community and

decision ma)ers #ho deal directly #ith the "an)ing sector and to ma)e meaningful

proposals and suggestion to improve the "an)ing sector in Tanzania.

urthermore the study #ill serve as a spring "oard to those #ho #ant to delve much

into human resource planning and development. inally, the research can also serve as

source of reference to other related studies.


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CHAPTER TO

LITERATURE REVIE

2.1 INTRODUCTION

n every study a good literature revie# does not only provide )no#ledge a"out #hat

has "een done in the research area "ut also strengths and #ea)nesses upon #hich one can

also "uild an insightful and purposeful study. HRM is one of the #ell/ researched

areas in management literature, ho#ever, the more research conducted in the field the

more de"ata"le the concept "ecomes. This chapter focuses on the various studies

conducted in the field of HRM, revealing necessary gaps in the literature #hich this

research intends to fill. To "egin #ith the concept of HRM is explored in light of #hat

it is said to "e and various constitutes and su" divisions. The literature also loo)s at

HRM research in Africa and then narro#s do#n to Tanzania.

2.2 DEFINITION OF TERMS

2.2.1 RECRUITMENT

Recruitment is defined as a search for and o"taining -ualified 4o" candidates in sufficient

num"ers such that the organization can select the most appropriate people to fill its 4o"

needs. t is specifically the set of activities and processes used to legally o"tain a sufficient

num"er of the right people at the right place and time so that the people and the organization

can select each other in their o#n "est short/run and long interest (chuler and Coung"lood,

1%

2.3 THEORETICAL REVIE

om"run, Tichy and 3evanna 1%


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remar)ed that prior to selection, there is 4o" analysis and advertisement. ole 1%%+!

argued that selection is the process of getting the "est of the competitors to ensure that

the "est candidates! are employed. This process is accomplished "y an intervie#

#hich is a controlled conversation "et#een applicant for a 4o" and the employer Maici"i

*00+!. After recruitment and selection of the "est person for the 4o", induction is the

next ma4or human resource activity. The nature of facilitation and appraisal system used

are all crucial to the performance of staff if properly aligned #ith one another.

(ystems theory as in (toner *00B! also vie# the organization as a unified, purposeful

system composed of interrelated parts. A system has many parts that all interact

extensively #ith one another. ?ften small systems can "e part of larger systems. The

activity and effectiveness of any segment of an organization affects in varying degrees the

activity of every other segments. All organizations have su"/systems that ma)e up the

#hole of the organization system. ?ne of these su"/systems is Human Resource

3epartment dealing #ith employment issues and therefore handles the human resource

activities namely9/ recruitment and selection, induction, facilitation and appraisal of staff

performance. All these activities must "e in congruence in order for the organization to

achieve its goals and o"4ectives.

These theories are relevant and applica"le to the study as it highlights the critical processes

in the employment system namely9/ recruitment and selection, induction, facilitation and

appraisal. The researcher therefore #ill investigated on the recruitment and selection, used

for staff and their effect on performance in the chosen "an)s.

2.2 DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT

The study of people management has gone through different phases dating as far "ac)


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as redric) Taylor@s 1%0%! (cientific Management to 7lton Mayo@s1%*8/1%+*!

Ha#thorne experiment giving rise to Human Relations movement through the era of

Eersonnel management until the present day concept of Human Resource Management.

This development has "een of interest in many studies see for example lood et,al

*00*5 (chuler and Randall, 1%%management practice, the concept remains undefined as it is applied in different #ays.

Hammersa) *00*! identifies three main approaches to HRM9 irstly, HRM as a ne#

title for personnel management, pointing that organisations rename their personnel

department #ithout necessarily changing practices, secondly, HRM as a #ay of re

conceptualizing and re organizing personnel roles and descri"ing the #or) of personnel

department, and thirdly HRM as a totally ne# approach for management #ith a

distinctiveness #hich lies in the integration of human resource into strategic

management and the emphasis on full and positive utilization of these resources. HRM is

therefore defined as9


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1 hich recruitment techni-ues should a "an) use>

The ans#er to these -uestions depends on the recruitment goals and o"4ectives of

the "an) as outlined "elo#

1. C$,*C$*)$0

f the goal of the "an) is to fill vacancies at minimize cost then the "est option is

to recruit internally "y means of staff transfers, promotions, demotions, recall from

retirement, etc. Apart from "eing cheaper, internal recruitment has other advantages

such as employee morale "oosting, encourages competent individuals #ho are am"itious,

improves the pro"a"ility of good selection since information on the individual@s


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evaluation of recruitment methods-changae

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