A STUDY OF THE EFFECTIVENESS OF RECRUITMENT IN SELECTING .

Transcription

A STUDY OF THE EFFECTIVENESS OF RECRUITMENT IN SELECTINGQUALIFIED TALENTS IN SERVICE ORGANIZATIONHIEW HON HOI (PC10001)Thesis submitted in fulfillment of the requirements for the award of the Bachelor ofIndustrial Technology Management with HonoursFaculty of TechnologyUNIVERSITY MALAYSIA PAHANGDECEMBER 2013

ivABSTRACTThe purpose of this study was to assess the effectiveness of the recruitment and selectionpractices and processes of services organizations, Kelly services and GD Express (GDEX). Theneed to attract and select a highly capabilities and skilled workforce in a tight and competitivemarket made the necessity adoption of best practices in recruitment and selection by servicesbased organizations. It was to examine the recruitment and selection practices in Kelly Servicesand GDEX, the effectiveness of the recruitment and selection practices of both companies, andways to improve the practices. Based on the investigation on best practices in recruitment andselection, three research questions were answered. Firstly, the adoption of best practices in bothorganizations is studied. Secondly, the effectiveness of the recruitment and selection methods isgiving attention. Finally a comparison is made between the recruitment and selection practices ofKelly Services and GDEX to determine which organization implement better techniques.

vABSTRAKTujuan kajian ini adalah untuk menilai keberkesanan pengambilan dan pemilihan amalan danproses organisasi perkhidmatan , Kelly Services dan GD Express ( GDEX ). Keperluan untukmenarik dan memilih sangat keupayaan dan tenaga kerja mahir dalam pasaran yang ketat danberdaya saing menjadikan keperluan amalan terbaik dalam pengambilan dan pemilihan olehorganisasi berasaskan perkhidmatan. Kajian ini mengkaji pengambilan dan pemilihan amalan diKelly Services dan GDEX , keberkesanan pengambilan dan pemilihan amalan kedua-duasyarikat , dan cara-cara untuk meningkatkan amalan tersebut. Berdasarkan siasatan mengenaiamalan terbaik dalam pengambilan dan pemilihan , tiga persoalan kajian telah dijawab. Pertama,pengambilan amalan terbaik dalam kedua-dua organisasi dikaji. Kedua, keberkesananpengambilan dan pemilihan kaedah memberi perhatian. Akhirnya perbandingan dibuat di antarapengambilan dan pemilihan amalan Kelly Services dan GDEX untuk menentukan organisasiyang melaksanakan teknik-teknik yang lebih baik.

viTABLE OF CONTENTSPageSUPERVISOR’S DECLARATIONISTUDENT’S ABLE OF CONTENTSVILIST OF TABLESXLIST OF FIGURESXICHAPTER 1INTRODUCTION1.1Introduction11.2Problem Background21.3Problem Statement41.4Research Objective51.5Research Question51.6Research Framework61.7Scope of Study61.8Signification of Study71.9Operational Definition8CHAPTER 2LITERATURE REVIEW2.1Introduction92.2Competitive Advantage92.3Human Resource Management92.4Definition of Recruitment10

vii2.52.4.1 The Process of Recruitment2.4.2 Recruitment strategies2.4.3 Recruitment sourcesSelection Process111415172.5.12.5.21819Selection MethodThe Selection Decision2.6Challenges of Recruitment and Selection202.7Summary23CHAPTER 3METHODOLOGY3.1Introduction243.2Research Design243.3Source of data253.3.13.3.225263.4Primary SourceSecondary SourceInstrument 273.6Sample Size273.7Sampling Technique273.8Process of data collection273.9Administration of Instruments283.10Data Analysis283.10.1 Content Analysis3.10.2 Descriptive Analysis2828Summary293.11

viiiCHAPTER 4FINDINGS AND ANALYSIS4.1Introduction304.2Findings from GDEX 4142Demographic dataNumber of Years Spent at GDEXProfessional Qualification of RespondentsOutline of Job AnalysisJob analysis technique in GDEXStructured recruitment and selection practicesRecruitment and selection process in GDEXApplicable Methods of Recruitment in GDEXRecruitment sources of GDEXFactors Considered before SelectionEffectiveness of Recruitment and Selection Practices of the GDEXImpact of Recruitment and selection Practices to Job PerformanceFactor to Improve Recruitment and Selection Practices4.3FINDINGS FROM KELLY SERVICES4.44.3.1 Demographic data4.3.2 Number of Years Spent at Kelly Services4.3.3 Professional Qualification of Respondents4.3.4 Outline of Job Analysis4.3.5 Job Analysis Technique in Kelly Services4.3.6 Structured Recruitment and Selection Practices4.3.7 Recruitment and Selection Process in Kelly Services4.3.8 Applicable Methods of Recruitment in Kelly Services4.3.9 Recruitment sources of Kelly Services4.3.10 Factors Considered before Selection4.3.11 Effectiveness of Recruitment and Selection Practices of the Company4.3.12 Impact of Recruitment and selection Practices to Job Performance4.3.13 Factor to Improve Recruitment and Selection PracticesComparison between GDEX and Kelly Services43444546474849505152535556574.4.1 Technique of Job Analysis in GDEX and Kelly Services4.4.2 Recruitment Sources in GDEX and Kelly Services4.4.3 Method of Recruitment in GDEX and Kelly Services4.4.4 Selection Methods in GDEX and Kelly Services57606264

ixCHAPTER 5 RECOMMENDATION AND ation715.4Recommendations for Further Research71REFERENCES73APPENDIX AInterview Questions for HR Department76APPENDIX BSurvey for General Staff and Employees79APPENDIX CGantt Chart81APPENDIX DSample Size Table82APPENDIX ECandidate Evaluation Form For interview Session83APPENDIX FInterview Question Worksheet84APPENDIX GResume Evaluation Worksheet85

xLIST OF TABLESTable No.TitlePage4.1Gender Distribution of Employees in GDEX314.2Job Analysis Technique in GDEX344.3Gender Distribution in Kelly Services434.4Job Analysis Technique in Kelly Services474.5Comparison of Job Analysis Methods594.6Recruitment Sources in GDEX and Kelly Services614.7Method of Recruitment in GDEX and Kelly Services634.8Selection Methods in GDEX and Kelly Services67

xiLIST OF FIGURESFigureTitlePageNo.1.1The Research framework2.1Job analysis in recruitment Process132.2Selection Method in Recruitment Process194.1Number of Years Spent at GDEX314.2Professional Qualification of Respondents in GDEX324.3Outline of Job Analysis in GDEX334.4Structured Recruitment and Selection Practices in GDEX354.5Recruitment and Selection Process in GDEX364.6Applicable Methods of Recruitment in GDEX374.7Recruitment Sources of GDEX384.8Factors Considered before Selection in GDEX394.9Effectiveness of Recruitment and Selection Practices of GDEX404.10Impact of Recruitment and selection Practices to Job Performance414.11Factor to Improve Recruitment and Selection Practices in GDEX434.12Number of Years Spent at Kelly Services444.13Professional Qualification of Respondents in Kelly Services454.14Outline of Job Analysis in Kelly Services464.15Structured Recruitment and Selection Practices in Kelly Services484.16Recruitment and Selection Process in Kelly Services494.17Applicable Methods of Recruitment in Kelly Services514.18Recruitment sources of Kelly Services514.19Factors Considered before Selection in Kelly Services534.20Effectiveness of Recruitment and Selection Practices in KellyServicesImpact of Recruitment and Selection Practices to Job Performance544.21in Kelly Services655

xii564.23Factor To Improve Recruitment and Selection Practices in KellyServicesSelection methods in GDEX4.24Selection methods in Kelly Services654.2264

1CHAPTER 1INTRODUCTION1.1INTRODUCTIONThis study explains the basics and fundamentals of what managers need to befamiliar about recruitment and selection practices. To work with people effectively, anunderstanding of both human behavior, attitude and various practices available to helpus build a skilled and motivated workforce must be acquired.Most of today’s businesses focus more on human assets rather than physicalassets. An organization can be readily purchase equipment, manufacturing facilities, andmost technologies, but the human talent are much hard to come by. Candidates who areable add value to their clients’ businesses shows the ability of a good recruitmentcompany in searching talents. Human Resources may set strategies and developpolicies, standards, systems, and processes that implement these strategies in a wholerange of areas such as recruitment and selection.Recruitment refers to the action of attracting, screening, and selecting potentialand qualified individual who might join an organization. Selection may be defined asthe process of choosing individuals who have relevant qualifications to fill existing orprojected job opening. One the most important decisions made by managers is thehiring decisions. Without the right people in the right positions, neither a company norindividuals can execute exceptional performance. A foundation can be created by goodhiring decisions for more effective overall company performance. Conversely, badhiring decisions can spoil the organizational performance and are pricy to correct.

21.2PROBLEM BACKGROUNDIt is an issue of services in today’s fast-paced economy competition. Much morefocuses has been brought to a better service and how these objectives can be achievedthrough the Human Resources Management. The growth of service organizations isimportant with the reason of customer interface. The importance of the relationshipbetween the customer and the service provider is the point that distinguishes serviceorganizations from manufacturing organizations is. Because of the amount of changethat has taken place in the last several decades, it is increasingly clear that the source ofcompetitive advantage in many industries has shifted from effective execution andreliable processes to the ability to provide satisfactory customer service to the ability toexcel in the area of customer relationship on a grand scale. Human resources is one ofthe sources of competitive advantage because they fulfill the criteria for being a sourceof sustainable competitive advantage (Wright, et al. 1994).As the world’s economy globalizes and competitors proliferate, competitiveadvantage is a compelling reason to do a business with an organization has becomeincreasingly important. Perhaps the most common approach to create competitiveadvantage is to be less expensive than competitors. For industries that are trulycommoditized and hence actively competing for customers, cost seems to be a logicaloption. However, competing on cost is a difficult game to win. In addition, competitioncomes not only from small players in underdeveloped countries but from largecorporations in developed countries. Southwest Airlines, Wal-Mart, and the retail chainCarrefour welcome a commoditized business environment.The point is that traditional sources of competitive advantage such as cost andproduct are becoming more and more difficult to maintain. If survival depends onmaintain a compelling reason for customers to choose one business over another, and itdoes playing field is tougher today than yesterday and will become even more difficulttomorrow as competitor and technologies proliferate.It is often heard people are the most important variable for and organization’ssuccess. Gratton 1997 shows that most companies believe that rather than financial or

3technological resources, human resource can offer a competitive advantage. In a studyof good companies that became great companies, Jim Collins (2001) identifies hiringthe right people and putting them in the right positions as a common practice among themost effective companies. This step eliminating problems of managing and motivatingpeople, the right ones are motivated, are committed to the success of the organization,and see that success linked to their personal success.The success of a business or an organization is directly affected to theperformance of those who work for that business. There is a linkage between HRpractices, competitive strategy and performance (Jackson 1987). Underachievement canbe a result of workplace failures. Because hiring the wrong people or failing toanticipate fluctuations in hiring needs can be costly, it is important that conscious effortsare put into human resource planning (Biles et al, 1980). If organization does not havethe right people although it possesses the latest technology and the resources, it will be aneed to put strenuous effort to achieve the objective and results required. This is trueacross the business activities, for example restaurants, hospitals, and airlines industry.Recruitment and selection are critical human resources functions for servicecompanies. Recruitment is just the initial process to be carried on. Rynes (1990)suggested that “recruitment encompasses all organizational practices and decisions thataffect either the number, or types, of individuals who are willing to apply for, or toaccept, a given vacancy”. Recruitment and selection also play important role in ensuringworker performance and positive organizational outcomes. As Mullins (2010) notes: ‘Ifthe HRM function is to remain effective, there must be consistently good levels ofteamwork, plus ongoing co-operation and consultation between line managers and theHR manager.’In a highly competitive marketplace, businesses need to make sure they getvalue from its performance. Employing the wrong person for certain position is a costlymistake to make. Poor choices at the recruitment stage can be costly. The organizationsneed to ensure for candidates competencies are well qualified physically andintellectually to sustain competitive advantage in the marketplace.

4One of the reasons that businesses consider to start hiring, when employees areneeded, is due to the high amount of cost in hiring. It is easy to forget that employing anemployee, not only charging in terms of cost, but once add in the cost of recruiting,training and more, and the dollars will start growing. The future of industries dependsupon the ability of the HR to innovate and brin

This study covers two areas of the service organization’s strategy for recruitment and selection practices. These areas include the recruitment process and the selection methods. There are specific steps used to implement the organization’s recruitment process and selection method in these areas. Job Analysis.