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ACKNOWLEDGEMENT
The preparation of this report “Improvement of recruitment and
selection process in HKT Consultant Jsc.” would not have been possible
without the enthusiastic support and contribution of all people involved in my
internship process.
Firstly, I would like to express my gratitude to Ms. Trần Thị Thu Giang,
Dean of Faculty of Foreign Languages for giving me the opportunity to conduct
this study to do the necessary research work and to use the departmental data. I am
also deeply indebted to my supervisor Ms Nguyễn Phương Hoài whose help,
stimulating suggestions and encouragement helped me in all the time of research
for and writing of this report.
I have furthermore to thank HKT Consultant Jsc. particularly Human
Resources Department for allowing me to do internship in the company. I
especially owe my thanks to my colleagues from the Department of Human
Resources particularly the director of HKT Consultant Jsc., Mr Kiem Pham for all
their valuable help and support.
Once again, great deal appreciated goes to all people that have encourage,
support and help me in completing my internship successfully.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT..................................................................................i
TABLE OF CONTENTS...................................................................................ii
TABLE OF ABBREVIATIONS.......................................................................ii
TABLE OF FIGURES.......................................................................................ii
EXECUTIVE SUMMARY..............................................................................iii
Therefore, improvements in the process of recruitment and selection is
required to help HKT Consultant Jsc. overcome its drawbacks and
attain greater competitive strength among other consulting companies in
Hanoi area. Recruitment preparation needs to have a clear method of
communicating requests for vacant or new positions - such as a
requisition form or memo. Employment agencies and campus
employment are beneficial sources to use for employing high skilled
workers. Metropolitan daily newspapers are a good way of attracting
suitable professional candidates for vacant positions. Advertising
internally to fill positions and having a structured interview helps ensure
that the right applicant is matched with the right job. Advertising
internally also helps increase commitment amongst employees. Finally,
by developing an orientation program and implementing it with new
employees, the organisation can decrease staff turnover and increase
commitment........................................................................................................iii
INTRODUCTION...............................................................................................1
CHAPTER I.........................................................................................................4
INTRODUCTION OF HKT CONSULTANT JSC. AND HUMAN
RESOURCE DEPARTMENT..........................................................................4
1. Company overview.....................................................................................4
2. Human resources department and recruitment – selection process
in HKT Consultant Jsc..................................................................................6
2.1. Roles and functions of human resources department in HKT Jsc.
................................................................................................................ 6
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2.2. Recruitment and selection process in HKT Jsc..............................7
CHAPTER II.....................................................................................................10
THEORETICAL FRAMEWORK ...............................................................10
1. Human resource management...............................................................10
1.1. Definition......................................................................................10
1.2. Functions of human resources management...............................11
2. Recruitment and selection.......................................................................11
2.1. Recruitment process.....................................................................11
2.2. Factors influencing recruitment..................................................18
2.3. Selection process...........................................................................18
2.4. Factors influencing selection.......................................................21
CHAPTER III....................................................................................................23
ANALYSIS AND FINDINGS........................................................................23
1. Recruitment process................................................................................23
1.1. Recruitment preparation...............................................................23
1.2. Sources of recruitment.................................................................24
1.2. General discussion of recruitment process in HKT Consultant
Jsc........................................................................................................26
2. Selection process.......................................................................................29
2.1. Procedures of selection in HKT Consultant Jsc..........................29
2.2. General discussion of selection process in HKT Consultant Jsc.31
CHAPTER IV....................................................................................................33
RECOMMENDATIONS.................................................................................33
1. Recommendations for recruitment process.........................................33
1.1. Recruitment preparation...............................................................33
1.2. Sources of recruitment.................................................................34
2. Recommendations for selection process...............................................35
2.1. Scanning and checking................................................................35
2.2. Testing and interviewing..............................................................35
CONCLUSION..................................................................................................37
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APPENDIX..........................................................................................................v
REFERENCES...................................................................................................iv
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TABLE OF ABBREVIATIONS
HR
: Human resources
HRM
: Human resources management
IT
: Information technology
Jsc.
: Joint stock company
TABLE OF FIGURES
Chart 1: Number of job quit in HKT Jsc. during 2009-2011......................8
Chart 2: Revenue by year of HKT Jsc. during 2009-2011...........................9
Figure 1: Organizational structure of HKT Consultant Jsc........................5
Figure 2: The Selection Process by Khan (2008, pp.104)..........................19
Table 1: Advantages and disadvantages of internal and external sources
of recruitment....................................................................................................17
Table 2: Effectiveness of sources of recruitment in HKT Consultant.....29
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EXECUTIVE SUMMARY
This report is intended to provide a brief but comprehensive analysis on the
current recruitment and selection process of Human Resources Department of
HKT Consultant Jsc. in terms of problems existing in HKT’s recruitment and
selection system.
The organisation selected is a management consultanting company. It is
based in Hanoi and has been established for several years. The company employs
more than seventy employees.
Observation, data analysis, interview questions and a questionnaire are used
to research and gather information about the organisation’s recruitment and
selection. Data collected shows that although the revenue of HKT shows a light
increase, this increase does not go along with huge resources used over the time.
This situation is the result of mistakes in the process of recruitment and
selection in the organization. Some problems in the process leads to job quit
unfitted employees and job dissatisfaction in the organization.
Therefore, improvements in the process of recruitment and selection is
required to help HKT Consultant Jsc. overcome its drawbacks and attain greater
competitive strength among other consulting companies in Hanoi area.
Recruitment preparation needs to have a clear method of communicating requests
for vacant or new positions - such as a requisition form or memo. Employment
agencies and campus employment are beneficial sources to use for employing high
skilled workers. Metropolitan daily newspapers are a good way of attracting
suitable professional candidates for vacant positions. Advertising internally to fill
positions and having a structured interview helps ensure that the right applicant is
matched with the right job. Advertising internally also helps increase commitment
amongst employees. Finally, by developing an orientation program and
implementing it with new employees, the organisation can decrease staff turnover
and increase commitment.
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INTRODUCTION
Introduction of research topic
There is no doubt that the business world is rapidly changing. As part of an
organization then, Human Resources Management (HRM) should be well
equipped to deal with the effects of the changing world of business. HRM must
understand the implications of globalization, technology changes, workforce
diversity. Changing skill requirements, continuous improvement initiatives
contingent workforce, decentralized work sites and employee involvement are the
issue for confront. Now it is a big challenge for the HRM to support the
organization by providing the best personnel for the suitable position in shortest
possible time. Starting with recognizing the vacancies and planning for them is a
great task. Moreover attracting the suitable candidates and selecting the best person
in time is a challenge. An effective approach to recruitment and selection can help
an organization to maximize the competitive advantages by choosing the best pool
of candidates quickly and cost efficiently. But successful recruitment and selection
can be costly and time-consuming. Still, recruitment and selection is crucial for a
business, because unsuccessful recruitment and selection can be responsible for the
failure of the business.
HKT Consultant Jsc. is a consulting company, so it is vital for the company
to have good human resources. However, during the past years, the revenue of the
company has not goes along with resources used. Moreover, there is an increase in
the number of employees who quit their jobs. Thus, HKT Consultant faces the
neccesity of developing the best process of recruitment and selection to make
human resources become the most valuable resource for the successful functioning
of an organization.
Rationales
The research attempts to explore the recruitment and selection process of
HKT Consultant Jsc. by providing a description of the current recruitment and
selection process of HKT. Then, a critical analysis of the existing recruitment and
selection process is conducted to determine which recruitment and selection
practices are most effective. Finally, some future recommendations
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recommendations will be made based on the information gathered to enable HKT
to attract highly qualified candidates and ensure person-job fit.
Research questions
For the above purposes, this research will be undertaken to gain answers for
the following questions:
1. Which general practices does HKT Consultant often use to recruit and
select employees?
2. How do recruitment and selection practices affect HKT’s outcomes?
3. Which practices should HKT apply for better recruiment and selection?
Scope of the research
The report deals with the recruitment and selection process in terms of
theoretical point of view and the practical use. The study will allow learning about
the recruitment and selection issues, importance, modern techniques and models
used to make it more efficient. The study will help to learn the practical
procedures followed by HKT Consultant Jsc. Moreover the study will help HKT
realize how the organization can improve its recruitment and selection process.
Methodology
There are three main research methods used in the report including
observational method, quantitative method and descriptive method. Observation
are used to observe, record and identify how the process of recruitment and
selection is performed in HKT Consulant Jsc. in order to point out some drawbacks
emerging in the middle of its operation process. Basing on quantitative method,
statical analysis is conducted on revenue growth and number of job quit to draw a
clear picture of recruitment and selection in HKT. Moreover, carried out as a
descriptive research, this report aims at identifying the underlying causes leading
to mistakes in the whole process of HKT’s recruitment and selection. from which
useful recommendations can be produced.
Methods of data collection
HKT Consultant does have a separate Human Resource (HR) department,
which conducts all the recruitment and se-lection activities. Interviewing the
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managers and executives of the HR department of HKT has provided the primary
sources of information. The interviews were conducted by using questionnaires
that consist of views and opinions of those particular people. Furthermore,
company brochures, documents, and the company website were the secondary
sources of data.
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CHAPTER I
INTRODUCTION OF HKT CONSULTANT JSC.
AND HUMAN RESOURCE DEPARTMENT
Chapter 1 provides an overview of HKT Consultant’s business and after that
goes more deeply in the operation of Human Resource Department in HKT
Consultant Jsc. Especially, this chapter will review the performance of recruitment
and selection process in order to find out its current situation.
1. Company overview
HKT Consultant Joint Stock Company or HKT for abbreviation founded
under the decision No 01105149688 of Minister for Ministry of Trade as a joint
stock company on February 11th 2009 with starting capital of VND 6.9 billion.
HKT has its own office at D1, Floor 9, Topcare Building, 335 Cau Giay,
Hanoi and is on the way to spread its business to other regions and provinces in
Vietnam.
Until now, HKT has 79 employees with 5 functional departments including
Research and Development, Sales, Administration and Human Resources, IT, and
Finance and Accounting.
Now, HKT mainly does business in two fields including implementation of
IT and modern management models in business and resesearch. Management
models provided by HKT Jsc. include strategic global management models;
resource management models; human resource management models evenue, sale,
purchasing, stock management models; financial management models; and
business and marketing management models; etc. while the service of research
provide epistemology and research methodology, data collection and process by
SPSS, Stata; management science (strategy, human resources, marketing, finance
and accounting, theories of the firm, organizational learning, competence and
knowledge transfer, acquisition & merger, joint-venture, etc.) and research
projects, study, articles…
With the prestige and trust built in three years of development, HKT
Consultant has now become the strategic partnership of VN SOLU Jsc. and the
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providers of management software for many companies in Hanoi and other
provinces.
With the current operations, the organizational structure of HKT Consultant
Jsc. is quite simple with the top management of Board of Management and 5
functional departments.
.
Board of
Management
Research and
Development
Dept.
Sales Dept.
Administration
and Human
Resources
Dept.
IT Dept.
Finance and
Accounting
Dept.
Figure 1: Organizational structure of HKT Consultant Jsc.
During the period of development, HKT Consultant always believes in the
statement that “Your customers don't care about your product, service, or business.
They care about themselves and their hopes, dreams and ambitions. Help them
achieve their dreams and you'll win them over”.
HKT Consultant Jsc. always follows customers’ dreams about their product:
“More suitable, more helpful, higher quality and … simplest
Better, faster and … cheaper
More comfortable, easier, saving actions and … reflections
More convenient, logic, more elegant and … more splendid”
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2. Human resources department and recruitment – selection process in
HKT Consultant Jsc.
2.1. Roles and functions of human resources department in HKT Jsc.
Human resources (HR) department is always considered as one of the most
important departments in HKT. Human resource department deals with a wide
range of activities from strategic planning level to the day to day operations level.
The main functions of HKT’s HR department include:
• Forecasting the labor requirement:
The business world changes dramatically; as a result, HKT also has to
changes to keep pace with other companies. Especially, the demand of human
resources in HKT often changes depending on with revenue, market and other
factors. Therefore, the HR department in HKT holds the responsibility of
forecasting the labour requirement of the organization in the future based on the
future level of sales/production level of the organization. The labour forecast may
identify the need for hiring or firing employees, which matches with the current
situation of HKT and its future business plan.
• Recruitment
Once the labor forecast is done or requisitions for recruitment from any
department in HKT are received, HKT’s HR department can identify the need for
more labor in the organization if the existing workforce is not sufficient to handle
the future workload. Then HR department has to recruit new potential candidates
to fill the vacancies. This process in HKT start with receiving requisitions for
recruitment from any department of the company. Requisitions include posts to be
filled, number of persons, duties to be performed and qualifications required.
Based on these requisotions, HR department will prepare the job description and
person specification, and then locate and develop the sources of required number
and type of employees to attract candidates for the latter process – selection.
• Selection
Selection is the process following recruitment process by which the most
suitable candidate is selected from the recruited pool of candidates. Selection is
done by carrying out various types of tests and interviews. HR department in HKT
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is responsible of selecting the most suitable employees to fill existing vacancies.
The HR department in HKT operates a quite thorough and efficient selection
process to ensure that the very best candidates are chosen. The process is detailed
in chapter 3.
• Training
Once the employees are done with the induction they become an employee of
the organization but the skills they possess may not be adequate to carry out
required tasks. The need for training arises when the there is a gap between
expected level of skills and the current level of skills of an employee. If a there is a
training need HR department has to design training programs and execute them.
• Performance appraisal
Based on based on expected level and the actual level of the performance,
employee performance will be evaluated by HKT’s HR department. HR
department in HKT has set up design performance appraisal systems to appraise
the employee performance on a fairly manner.
In addition the functions above, HR department in HKT is also in charge of
other duties such as rewarding employees, managing carrier growth of
employees/promotions, managing redundancy, managing employee grievance, and
managing complains about employees…
2.2. Recruitment and selection process in HKT Jsc.
It is obvious that organizations with highly effective recruitment and
selection systems were significantly are likely to have experienced improvements
in business and employee outcomes than organizations with ineffective selection
systems.
Organizations with effective recruitment and selection systems can better
identify and hire employees with the right skills and motivations to succeed in the
positions, as well as in the organization. When employees are successful in their
jobs, the organization benefits through increased productivity and higher quality
products and services. In addition, when the “right” employees are hired initially,
they are more likely to be satisfied and stay with the company. Thus, by using a
good recruiment and selection system to hire qualified employees, organizations
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can reduce turnover, increase employee retention, and ultimately improve critical
business outcomes.
However, in HKT the recruitment and selection system seems not to function
well. The evidence is that there is an increase in the number of employees who quit
their jobs at HKT.
Chart 1: Number of job quit in HKT Jsc. during 2009-2011
From the chart we can see that the number of people who left their jobs at
HKT is greater during 2009-2011. If in the first year of operation, there were 6
employees leaving their positions at HKT, in 2010 and 2011 that number is 8 and
9. There are some reasons contributing to this situation in HKT such as low
income, limited career opportunities, unsatisfactory working conditions; and one of
the most important reasons firgured out through the research process is the process
of recruitment and selection with mistakes. This situation leads to the fact that
people chosen are not fitted with the positions.
Moreover, the business outcome is also affected by this situation. Although
many resources including human resources and money are invested, the revenue
has not shown big changes.
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Chart 2: Revenue by year of HKT Jsc. during 2009-2011
If in 2009, the company gained revenue at more than 510,000 USD in 2010
and 2011 it is only more than 512,000 USD and 513,000 USD. Although the
revenue still increased a little bit, compared with resources invested this revenue
level is not satisfactory.
For all the reasons above, this report is conducted to analyze the current
situation in the recruitment and selection process in HKT. Based on this analysis,
recommendations will be offered to solve existing problems.
In brief, chapter 1 gives a picture of HKT Consultant Jsc. and its HR
department together with recruitment and selection process in HKT. Some
consequences caused by recruitment and selection process are also figured out to
identify the problems. Based on these problems, chapter 2 will give theoretical
framework for the process of recruitment and selection.
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CHAPTER II
THEORETICAL FRAMEWORK
Chapter 2 presents the theoretical framework for analyses of my report. It is
responsible for answering the question about human resources management issues
which affectting the process of recruitment and selection. It is also the guide to
instruct the building of effective recruitment and selection strategies.
1. Human resource management
1.1. Definition
1.1.1. Human resources
Human resources (HR) is a popular concept. There are many meanings of
human resources. People often use the meaning of HR within corporations and
businesses which refers to the individuals within the firm, and to the portion of the
firm’s organization that deals with the hiring, firing, training, and other personnel
issues.
Gilley and Gilley also define HR as “the people employed by an
organization” (Gilley, Eggland, & Gilley, 2002, p. 5).
However, these definitions are not really enough in the modern context of
business. In today business world, HR may be defined as the total knowledge,
skills, creative abilities, talents and aptitudes of an organization's workforce, as
well as the values, attitudes, approaches and beliefs of the individuals involved in
the affairs of the organization.
1.1.2. Human resources management (HRM)
In Managing Human Resources: Personnel Management in Transition,
Stephen Bach (2005:3) states that HRM refers to: "... all those activities associated
with the management of the employment relationship in the firm. The term
'employee relations' will be used as an equivalent term as will the term 'labour
management'." While Gilley and Eggland define HRM as “the recruitment,
selection, retention, development, and utilization of and accommodation to human
resources by organizations” (Gilley, et al., p. 9).
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The main objective HRM is the maintenance of better human relations in the
organization by the development, application and evaluation of policies,
procedures and programmes relating to HR to take the best advantage their
contributions towards the fulfillment of organizational objectives. In other words,
HRM is concerned with getting better results for the organization with the
collaboration of people.
1.2. Functions of human resources management
HRM can be understood as the development of a perfect mix between
traditional administrative functions and the well-being of all employees within an
organization. The HRM is responsible for: understanding and relating to
employees as individuals, thus identifying individual needs and career goals;
dentify areas that suffer lack of knowledge and insufficient training, and
accordingly provide methods in the form of workshops and seminars; developing
positive interactions between workers, to ensure collated and constructive
enterprise productivity and development of a uniform organizational culture;
recruiting the required workforce and making provisions for payroll and benefits
and implementing resource strategies to subsequently create and sustain
competitive advantage for the enterprises. In addition, HRM also acts the main role
in dealing with employee dissatisfaction and evaluating employee performance.
2. Recruitment and selection
Breaugh and Starke (2000) found that the amount of research on recruitment
topics has increased significantly in the last four decades. Hiltrop (1996) found that
employee recruitment and selection have a statistically significant impact on
employee outcomes. In his research, Huselid (1995) mentioned about different
researchers who have signified the recruitment and selection practices as ‘high
performance work practices’ which could improve employee motivation and
retention. According to Singh and Finn (2003), an organization’s ability to attract
and retain capable employees can be the most important determinant of
organizational effectiveness because recruitment plays a significant role in
enhancing organizational survival and success in competitive and turbulent
business environments.
2.1. Recruitment process
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Recruitment is the process by which organizations locate and attract
individuals to fill job vacancies (Fisher, Schoenfeldt & Shaw, 2004; Kleiman,
2005). According to Khan (2008), recruitment means informing the market that
new people are going to be appointed, which can be done through publicity and
advertisement. The primary purpose of recruiting is identifying and attracting
potential employees (Noe, Hollenbeck, Gerhart & Wright, 2006).
To sum up, recruitment is the process of identifying and attracting a group of
potential candidates from within and outside the organization to evaluate for
employment.
In terms of recruitment process, the main concerns lie in recruitment
preparation and sources of recruitment in the organization.
2.1.1. Recruitment preparation
• Identifying staffing requirements
Recruitment preparation starts with indentifying needs and requirements of
human resources in all departments of organizations. After requirements are
identified, requisitions for the vacancies need to be raised.
• Job requirements and person specifications
Job requirements and person specifications are extremely important in the
process of recruitment. Good job requirements and person specifications allows the
organisation to profile the ideal person to fill the job.
All recruitment posts that are to be advertised must have an up-to-date job
description, which is an accurate reflection of the post the department is seeking to
fill. Job descriptions are required in recruitment posts in order to clarify what the
post-holder is required to do; to inform applicants about the post and to provide
information required for recruitment purposes; to provide information for drawing
up person specification criteria; to create a reference document for performance
assessment; etc.
The job description should include the following: post title and department;
background to the post; the purpose/objective of the post; the main duties and
responsibilities; key relationships; and special requirements.
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Person specification is so essential in the recruitment and selection process
because it lays the foundation for the success or failure of the process as a whole.
A well-written specification will become the basis for the objective assessment of
applicants both at the short-listing and selection stages; a badly written person
specification may make selection more difficult. It helps to enable potential
applicants to determine whether they are capable of meeting the requirements of
the job. It also helps recruiters to identify what qualities are required to do the job.
In addtion, it provides employers with a tool to judge whether applicants meet the
requirements and to compare one applicant with another. Importantly, it can reduce
bias in the recruitment and selection process by ensuring candidates are judged
against criteria which are relevant to the job. A person specification should include
a list of criteria which focus on the qualifications, knowledge,
skills/abilities/competences, experience and other post requirements.
2.1.2. Sources of internal recruitment
Internal recruitment is a recruitment which is conducted within the
organization. Internal sources of recruitment are always available to an
organization.
There are many sources of internal recruitment used by organizations. The
most common sources are:1. promotion; 2. transfer; 3. employee references; 4.
job posting ; 5. newsletters and 6. memorendum.
• Promotion
The most important source of filling vacancies from within is through
promotions. Promotion involves movement of employees from a lower level
position to a higher level position accompanied by changes in authority, duties,
responsibilities, status and remuneration (Khan, 2008). In promotion, the
employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.
• Transfer
As Khan (2008) mentioned, transfer is a lateral movement within the same
grade, from one job to another without any change in remuneration. Generally,
after 3 to 5 an employee is transferred from one department to another. In transfer,
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the employees are transferred from one department to another according to their
efficiency and experience.
• Job posting
Job posting is a system of providing notices of job openings and employees
respond to by applying (Mathis & Jackson, 2005). This is the convenient and
simple method of passing on important messages to the existing staff. A job
advertisement pinned to a notice board or through email or phone will probably be
seen, read and received by a sufficient number of appropriate employees at little or
no cost.
• Employee references
The existing employees will probably know their friends or relatives or
colleagues who could successfully fill the vacancy. Approaching them may be
highly efficient method of recruitment but will almost certainly offend other
workers who would have wished to have been considered for the job. To keep
employees satisfied make sure that potentially suitable employees are informed of
the vacancy so that they can apply. Also any one else who is likely to be interested
is told about it as well so that they can apply for the job.
In addtion to the main above internal sources of recruitment, there a still some
other sources such as newsletters of memorandum. While newsletters are
considered as a in-house publication of an organization which can be utilized as
the source of recruitment, memorandum is a kind of document sent to department
managers to read out to the teams or to write to all employees about the company’s
recruitment.
2.1.3. Sources of external recruitment
External sources of recruitment have to be solicited from outside the
organization. External sources are external to a concern. But it involves lot of time
and money. When a company is involved in large expansions and is more oriented
towards achieving high growth and high market share, with more focus on quality
of the product and high customer satisfaction then it is inevitable for any
organization to go for external recruiting. External recruiting is nothing but
recruiting the people in your organization from outside the company
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The external sources of recruitment include: press advertisement; job centers
and consultants; campus recruitment; and competitors
• Press advertisement:
Advertisements of the vacancy in newspapers and journals are a widely used
source of recruitment. The main advantage of this method is that it has a wide
reach. Enterprise advertises vacancies through newspaper, trade journals &
magazines. The content of advertisement and media through which advertisement
is to be given is decided by Human Resource department. It is a popular method of
seeking recruits, as many recruiters prefer advertisements because of their wide
reach. Want ads describe the job benefits, identify the employer and tell those
interested how to apply. Newspaper is the most common medium but for highly
specialized recruits, advertisements may be placed in professional or business
journals. Advertisements must contain proper information like the job content,
working conditions, location of job, compensation including fringe benefits, job
specifications, growth aspects, etc. The advertisement has to sell the idea that the
company and job are perfect for the candidate. Recruitment advertisements can
also serve as corporate advertisements to build company’ image.
• The Internet
The internet is rapidly becoming the primary source of recruitment. Technology or
the web based tools are now popularly used to assist the recruitment process. The
tool can be either a job website like vieclam.vn, the organisation’s corporate web
site or its own intranet. Many big and small organizations are using Internet as a
source of recruitment. They advertise job vacancies through worldwide web. The
job seekers send their applications or curriculum vitae (CV) through an e-mail
using the Internet or apply directly in the company’s website. In addition, job
seekers can place their CV’s in the worldwide web, which can be drawn by
prospective employees depending upon their requirements.
• Job centers and consultants
Jobs centers now are available in most large cities which offer employers a
professional recruitment service and help employers to match their vacancies to
job seekers.
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Consultants are also used by employeers to find the right candidates. They are
useful as they have a wide network and professionalism to the hiring process.
• Campus recruitment
School, colleges and professional institutions often offer recruitment
opportunities for their students. Prospective employers come directly to
universities and conduct interview; moreover, placement cells have been set up in
well known educational institutions to help students in seeking suitable jobs. Now
campus recruitment has gradually become a major source of recruitment for
prestigious companies.
• Competitors
This method involves identifying the right people in rival companies, offering
them better terms and luring them away. However, companies should take care of
some legal and ethical issues involved in raiding rival firms for potential
candidates.
2.1.3. Internal vs. external recruitment
The organization does not have a written policy on internal recruitment. There is no
procedure in place to facilitate the filling of positions through internal sources. One of the
implications of not advertising internally within the organization is that morale may be
damaged which may contribute to an increase in absenteeism and a decrease in job
satisfaction (Robbins et al. 1998). Another implication is that the most suitable applicant
for the job may already be employed with the organization, but because the position is not
advertised internally that employee will not have the opportunity to put their case
forward. Internal advertising can ‘… help identify people with talent who otherwise
would not be known personally to management’ (Compton & Nankervis 1998, p. 71).
Internal advertising and job posting can help facilitate the promotion of employees who
are aptly qualified. Without the advertising of positions internally, it is difficult to develop
succession planning (Walker 1992).
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Nguyễn Thị Trải – CQ503805 – Business English 50B
Sources of
Internal sources
External sources
recruitment
Indicator
Advantages
- Enhancement of employee
satisfaction and individual
motivation;
- Improvement of existing
staff's skills and training
- Opportunities for
development and promotion.
- Retainment of valuable
employees whose skills can be
further enhanced
- A good basis for recruitment
based on daily performance
evaluation
- Reduction of costs and time
- Smaller pressure for the
compensation and benefits
Disadvantages
- Considerable small size of
prospective applicants
- Discouragement of external
sources entering the
organization
- Large sources of
recruitment.
- New blood of resh
employees with new ideas,
different approaches to
problems
-A good tool for the external
rumoring about new products
and services.
- Improvement of new skills
and competencies.
- Economical way of
recruitment in the long run
- Many available different
ways of recruitment
- Avoidance of suspision of
fovouritism
- Required extra time
- Increase in recruitment
costs
- Complicated procedures
- Employees dissatisfaction
- Limitation of innovation
- Suspision of favouritism
Table 1: Advantages and disadvantages of internal and external sources of
recruitment
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Nguyễn Thị Trải – CQ503805 – Business English 50B
2.2. Factors influencing recruitment
A number of factors affecting recruitment process in an organization. These
factors include (1) organizational policies regarding recruiting; (2) type of labor to
be recruited; (3) conditions of the labor market; and (4) cost and time constraints.
Recruitment policies affect significantly recruitment process. These policies
decide which source of recruitment will be used and how many resources will be
spent on recruitment.
In addition, type of recruited labor is also a determinant of recruitment. It is
important to clearly specify recruiting goals in terms of number and type of labor
to be recruited. The type of labor to be recruited affects the scope of the recruiting
effort. Each type of labor has its own labor market. Generally, labor markets are
smaller in number for labor types that are highly specialized or that require higher
levels of education and experience.
Labor market conditions also affect of recruiting plans. Labor markets are
local, regional, national, or international, depending on the geographical area in
which the forces of supply and demand operate for a particular labor type. Jobs
that require less highly skilled labor (such as clerical, sales, and service
occupations) can usually be recruited from local labor markets, while jobs
requiring more highly skilled labor (for example, water pollution specialists,
computer programmers, and registered nurses) can be recruited from regional
markets.
Lastly, cost and time constraints create obvious limitations on recruiting
efforts. For example, an organization with very little money used for recruiting will
not even consider hiring a artist to design attractive recruiting materials. Rather
than spend money to advertisement, an organization with few cash resources for
recruiting will often use a system of employee referrals in which potential
applicants are referred to the organization by present employees.
2.3. Selection process
Selection is the process by which companies decide who will or will not be
allowed into organizations (Noe et al, 2006). According to Khan (2008), the
objective of selection is to pick the right candidate(s) who meet the requirements
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Nguyễn Thị Trải – CQ503805 – Business English 50B
of the job and the organization best. Mathis and Jackson (2005) pointed out that it
ensures the person-job and person-organization fit. That’s why Fisher, Schoenfeldt
and Shaw (2004) mentioned that a good employee selection system can add to
overall effectiveness of the organization.
In brief, employee selection can be considered as the process of putting right
men on right job. This procedure will match organizational requirements with the
skills and qualifications of people.
According to Khan (2008, pp.104), main steps in selection process are:
reception of resume and application, CV screening, written test, interview,
background and references check, final selection, placement and medical and
physical examination.
Figure 2: The Selection Process by Khan (2008, pp.104).
Step 1: Reception of resume and application
After the notice of recruitment is delivered, candidates must apply their
resume and application to the companies which they aim at. The reception of
resume and application can be done via email, letter or directly at the office of the
company.
Step 2: CV screening
It is used to eliminate those candidates who do not meet the minimum
eligibility criteria and requirements laid down by the organization. The skills,
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