Luận văn thạc sỹ: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION IN SSI – HANOI BRANCH

TABLE OF CONTENTS
ACKNOWLEDGEMENTS
ABBREVIATION

FIGURES, CHARTS AND TABLES....................................................................3
1.

Charts..........................................................................................................3

2.

Tables...........................................................................................................3

3.

Appendices..................................................................................................3

Chapter 1: INTRODUCTION...............................................................................5
1.

Rational.......................................................................................................5

2.

Research objectives:...................................................................................7

3.

Research questions:....................................................................................7

4.

Research methodology:..............................................................................8

5.

Scope of research and limitation................................................................9

6.

Research contents:......................................................................................9

Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND
SELECTION.............................................................................................10
2.1

Definitions:................................................................................................10

2.1.1

Human Resource Management................................................................10

2.1.2

Human Resource Planning.......................................................................11

2.1.3

Recruitment and Selection.......................................................................11

2.2

Process of Recruitment and Selection.....................................................12

2.2.1

Job description and job specification......................................................12

2.2.2

Process of Recruitment and Selection.....................................................13

2.2.2.1 Process of Recruitment.............................................................................13
2.2.2.2 Process of selection....................................................................................20
2.3

Induction...................................................................................................26

2.4

Role of Recruitment and Selection in Organization...............................27

2.5

Relationship between Recruitment & Selection and HRM functions
in organization..........................................................................................28


2.5.1

Recruitment & Selection and HR planning............................................28

2.5.2

Recruitment & Selection and Performance evaluations........................28

2.5.3

Recruitment & Selection and Compensation & Benefits.......................28

2.5.4

Recruitment & Selection and Training & development.........................28

2.5.5

Recruitment & Selection and Employee relations..................................29

2.6

Factors affecting Recruitment and Selection..........................................29

2.6.1

Factors affecting Recruitment.................................................................29

2.6.2

Factors affecting Selection.......................................................................31

Chapter 3: THE ACTUAL SITUATION OF RECRUITMENT AND

SELECTION IN SSI - HANOI BRANCH..............................................33
3.1

Overview about SSI..................................................................................33

3.2

Overview about SSI – Hanoi Branch......................................................33

3.2.1

SSI – Hanoi Branch’s divisions:...............................................................34

3.2.2

Missions and vision of SSI – Hanoi Branch from 2010 to 2015.............35

3.2.3

SSI – Hanoi Branch’s Structure:.............................................................35

3.2.4

HRD’s functions and responsibilities......................................................35

3.2.5

SSI – Hanoi Branch’s labor force structure............................................36

3.3

Factors affecting recruitment and selection at SSI - Hanoi Branch......37

3.3.1

Internal factors:........................................................................................37

3.3.2

External factors:.......................................................................................38

3.4

Finding about recruitment and selection at SSI - Hanoi Branch..........39

3.4.1

HR Planning..............................................................................................39

3.4.2

Job descriptions........................................................................................40

3.4.3

Recruitment...............................................................................................42

3.4.4

Selection.....................................................................................................49

3.4.5

Induction...................................................................................................52

Chapter 4: RECOMMENDATIONS TO IMPROVE RECRUITMENT
AND SELECTION IN SSI – HANOI BRANCH....................................54
4.1

Business plans and estimated manpower of SSI – Hanoi Branch in
the next period 2012 – 2014......................................................................54


4.1.1

Business plans...........................................................................................54

4.1.2

Estimated manpower for the period 2012 – 2014...................................55

4.2

Recommendations.....................................................................................56

4.2.1

Strengthen recruitment team...................................................................56

4.2.2

Improving job descriptions......................................................................57

4.2.3

Improving tests and interviews:...............................................................58

4.2.3.1 Tests...........................................................................................................58
4.2.3.2 Interview:..................................................................................................59
4.2.4

Conduct reference check carefully..........................................................63

4.2.5

Use more sources for choosing the best ones...........................................63

4.2.6

Other solutions..........................................................................................64

CONCLUSION.....................................................................................................65
LIST OF REFERENCES.....................................................................................66
APPENDIX 1: PERSONEL REQUISITION FORM........................................67
APPENDIX 2: CANDIDATE EVALUATION FORM.......................................68
APPENDIX 3: FORM OF PROBATION EVALUATION................................69
APPENDIX 4: INTERVIEW QUESTIONS FOR LINE MANAGERS AND
HR OFFICERS.........................................................................................70
APPENDIX 5: QUESTIONNAIRE FOR STAFFS............................................75
APPENDIX 6: RESULT OF INTERVIEW QUESTIONS FOR LINE

MANAGERS.............................................................................................78
APPENDIX 7: RESULT OF QUESTIONNAIRE FOR STAFFS...........................82


ACKNOWLEDGEMENTS
I would like to express my deep and sincere gratitude to my supervisor, Dr. Dao Thi Thanh
Lam, Business School of National Economics University. Her wide knowledge and her
logical way of thinking have been of great value for me. Her understanding, encouraging
and personal guidance have provided a good basis for the present thesis. I also wish to
extend my warmest thanks to all those who have helped me with my thesis in EMBA 7B
class, Business School NEU.
My special gratitude is due to my Director, my colleagues at SSI and my friends
working in financial for their participation in my survey and for valuable information they
provided.
I would also like to thank my family. Without their encouragement and understanding
it would have been impossible for me to finish this thesis.
Thank you very much.

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ABBREVIATION
SSC: State Stock Committee
HOSE: Ho Chi Minh City Securities Trading Center
HNX: The Hanoi Stock Exchange
SSI: Saigon Securities Incorporation
SSI – Hanoi Branch: Hanoi Branch of Saigon Securities Incorporation
ACBS: Asia Commercial Bank Securities
ICBS: Incombank Securities
BOA: Board of Administration

HRD: Human Resource Department
HRP: Human Resource Planning
JDs: Job descriptions

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FIGURES, CHARTS AND TABLES
1. Charts
Chart 1: Recruitment process flowchart
Chart 2: Selection process flowchart
Chart 3: Structure of SSI – Hanoi Branch
Chart 4: Recruitment flowchart of SSI – Hanoi Branch
Chart 5: Selection flowchart of SSI – Hanoi Branch
2. Tables
Table 1: Shareholder structure and ownership ratio
Table 2: Personnel requisition form
Table 3: Candidate evaluation form
Table 4: Recruitment and selection report for 2007, 2008 and 2009
Table 5: Form of probation evaluation
Table 6: Turnover of SSI – Hanoi Branch
Table 7: Gap between hiring time and demand fulfillment time
Table 8: Business plan for SSI – Hanoi Branch from 2011 - 2013
Table 9: Manpower plan in period 2011 - 2013
Table 10: Job descriptions
Table 11: Standard mark for transaction officer
Table 12: Interview evaluation form
3. Appendices
Appendix 1: SSI – Hanoi Branch interview questionnaire
Appendix 2: Questionnaire on evaluating the effectiveness of recruitment & selection of

line managers
Appendix 3: Survey for staffs

3


4


Executive summary
The Vietnamese stock market has gone through many ups and downs in ten years
from its inception. But forecasts to 2020 Vietnam's financial market will thrive, stability
and integration into international financial markets. Vietnamese stock market has great
potential and favorable conditions to grow. However, development opportunities are
always accompanied by challenges. The competitors between securities companies will
become more intense and takes place in all aspects: financial capacity, technological,
managerial, market share, human resource, etc… It can be said that the human resource is
one of the key factors affect organization’s value, in which recruitment and selection are
first stages and the decided steps in human resource management. Recruitment and plays a
key role of HR activities in general and the SSI – Hanoi Branch in particular. SSI – Hanoi
Branch is the oldest and the largest in the whole company. It has been the leading branch
for years. With over two hundred people work in here, the Branch also has to build an
effective human resource management to ensure all its activities are conducted fluently and
smoothly. Therefore, recruitment and selection is very important processes. It all boils
down to selecting the “most qualified and best person” for the job requirements. It is the
company and the Branch's goal to choose the candidate that helps them achieve its
missions, and gives them the advantage over their competitor's. It is not an easy work, but
it is all worth it.
Understand about this problem, I would like to focus on analyzing the recruitment
and selection which SSI – Hanoi Branch is used as a minor example. Recruitment and

selection has been paid attention of BOM and HRD, but for many reasons, it has been
issues and disadvantages in reality. Based on my experiences in SSI – Hanoi Branch, I
wish to propose solutions on recruitment and selection to improve and eliminate present
problems.

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Chapter 1: INTRODUCTION
1. Rational
The Hanoi Stock Exchange (HNX) and Ho Chi Minh City Securities Trading Center
(HOSE) were officially inaugurated on July 20, 2000. From its beginning, Vietnamese
stock market has been developed rapidly. Currently, by the end of 2009, the total market
capital is approximate 40 billion US dollar, and total daily trade of both HOSE and HNX is
more than 100 million US dollar. According to estimation in 2010 the capital size of the
stock market will be increased many times when much more companies have planned to
register their stocks to be listed on HOSE and HNX. As a result, Vietnamese stock market
will become very promising and challenging in the future.
There were two securities companies in year 2000 at the inception of HOSE and
HNX, but that number has been added massively years to years. During the last period, the
market was shared by several big and old securities companies, such as SSI, BVS, ACBS
and ICBS. Because of the boom of stock market in 2006 together with the tendency to post
up of joint stock companies there were a wave of new established securities companies and
that leads to the lack of qualified human resource working in stock market. Up to now,
there are more than one hundred securities companies are operated in the market and
gradually seize the market share, and this number will continue to grow in later years. This
trails the demand for human resource has been ongoing increased. Most companies have
endeavored to recruit and select employees who are qualified and experienced in finance.
Because of the intellectual business field, recruitment and selection are very important
processes; these are crucial first steps for a company to employ the appropriate candidates

for particular jobs. Unless a company selects the right people by using suitable recruitment
and selection process, it will lose money and time to fix the consequences. Requirement for
employees, who work in securities companies, are more rigorous than in other fields. It
requires certificate on practicing professional competence issued by State Stock Committee
(SSC) beside other requirements such as experience, knowledge, professional skills.
Therefore, in order to minimize the cost and time wasting caused by poor performance of
staffs the lack of deliberation in recruitment and selection, securities companies have to set

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up the reasonable human resource plans which first pays attention on recruitment and
selection process.
When the Vietnamese Stock market boomed in 2006, securities companies were
established with incremental number. At that time, the supply of qualified labor in this field
was lack. As a result, most securities companies recruited employees recklessly, a huge
number of their workforce didn’t have knowledge and experienced about stock market,
they even didn’t have certificates issued by SSC. This lack of deliberation caused serious
consequences, poor performance of staffs caused unsatisfactory of customers, companies’
prestige reduction and high turnover. The world financial crisis took place in 2007 and
2008, the workforce in securities companies was tumble reduction and they are fired with
huge number. But after suffering the world financial crisis, at the end of 2008 up to now,
the Vietnamese stock market has been recovered with moderate speed and the demand for
workforce is increasing again. With the new situation, securities companies have been
cautious in recruiting and selecting their workforce. According to the results of the survey
on website vneconomy.com.vn in 2009 about human resource situation in stock market,
57% of people agreed that the recruitment of fit well talents will be the major challenge in
2010-2015. So 72% of securities companies surveyed said the budget for personnel
operations of their company will increase in 2010-2015. At the National Meeting about
Finance and Banking human resources, Finance Ministry leaders said the demand for

human resource in 2010 in stock market is 5,000 people, but in fact the current human
resource is only meet 40% demand. So, the competition between securities companies in
recruiting people is getting fiercer.
Saigon Securities Inc. was established 2000, with charter capital was 6 billion VND,
offering only brokerage and stock investment advisory services. As Vietnam’s premier
financial services company, SSI commits to providing unrivaled investment intelligence
and opportunities, and consistently superior customer service. With its large scale, SSI is
trying to build up a qualified, dynamic and creative workforce to meet customers’ demand
and company’s business strategy. The company considers recruitment and selection are the
important tasks to bring success to SSI.

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SSI has recruited more and more staffs recently because of the company’s expansion.
But division managers are displeasure about the effectiveness of recruitment and selection
of Human Resource Department. According to the result of my survey conducted in
November 2011, about 67% of line managers complain about their staffs’ performance,
ability and knowledge. Many staffs work with low speed and make mistakes regularly. In
some cases, those situations cause serious consequences. The managers have to return
staffs to Human Resource Department for retraining, transferring to another departments or
even ending the labor contract. As a result, the turnover is quite high, about more than17%
in average for four years, from 2008 to 2011, and most staffs leave SSI involuntarily.
Therefore, the cost for retraining staffs, terminating contracts and recruiting new people is
also really high. On the other hand, I found that many newly staffs in SSI are dispirited and
stressful; they have to spend much time to familiarize themselves with the job and the
company’s culture, because they are not given concrete job descriptions at the starting
time, they are not trained about the job and SSI’s culture either.
2. Research objectives:
The aim of my thesis centers in the idea of improving recruitment and selection process in

SSI - Hanoi Branch. In order to support this aim there are three objectives of the
dissertation:


To analyze the existing recruitment and selection process of SSI to understand its
strengths and weaknesses.



To identify root causes of the weaknesses of the recruitment and selection process
at SSI



To give suggestions for improving recruitment and selection process in Saigon
Securities Inc. in order to match the employees and company needs.

3. Research questions:
With the objectives above, there are three biggest questions that I attempt to get the
"answers" in this thesis:

8




What are strengths and weaknesses of the recruitment and selection process of SSI
– Hanoi Branch?



What factors cause those weaknesses?



What plausible courses of action to improve the recruitment and selection process
in SSI – Hanoi Branch?

4. Research methodology:
Primary data: I employed both quantitative and qualitative approaches to data
gathering.
Firstly, in quantitative research, I interviewed deeply head and vice managers of
every departments in SSI – Hanoi Branch (10 departments with 20 people in total) and
especially the Board of Management (4 people) and the Head of Human Resource
Department, who purposely implemented the use of recruiting and selecting process and
recognize their reasons for implementing it, their evaluation and the awareness of Human
Resource manager and Board of Management about the reason for new staffs’ poor
performances. In addition, the interview can help me understand more clearly about the
gap between their expectations and the real outcome about implemented recruiting and
selecting process.
Secondly, the use of survey for qualitative research determines the attitude of staffs, their
reasons for making mistakes and their expectations. The questionnaires will be distributed for
all the staffs (70 people) of SSI - Hanoi Branch by email. All the collected information will be
summarized and analyzed to find out the problems in recruitment and selection process in SSI
- Hanoi Branch, and give recommendations to improve these issues.
Table 1.1: Feedback result
Result of feedback received
Number of feedback
Staffs
34

Line managers
12
Total
46

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Secondary data: newspapers, websites, human resources management books, related
researches, reports from SSC, stock magazines and other relevant documents.
5. Scope of research and limitation
This thesis focuses on studying recruitment & selection activities within SSI – Hanoi
Branch in three years (from 2009 to 2011). The information was collected from employees
to realize the reason and current situation of recruitment & selection in SSI – Hanoi
Branch. Comment from leaders of departments and team leaders will help me to give
suggestions to improve recruitment & selection.
6. Research contents:
The thesis includes 4 main chapters
Chapter 1: INTRODUCTION
Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND SELECTION

Chapter 2 aims to identify theory of recruitment and selection
Chapter 3: THE ACTUAL SITUATION OF RECRUITMENT AND SELECTION IN SSI
- HANOI BRANCH

Chapter 3 describes and analyzes in detail the fact of recruitment and selection in
SSI – Hanoi Branch
Chapter 4: RECOMMENDATIONS TO IMPROVE RECRUITMENT AND SELECTION
IN SSI - HANOI BRANCH

Chapter 4 is some recommendations to improve recruitment and selection in SSI Hanoi Branch based on its realities.

Chapter 2: BACKGROUND RELATED TO RECRUITMENT AND
SELECTION
10


2.1 Definitions:
2.1.1 Human Resource Management
Human resource management (HRM) is the sense of getting things done through people.
It's an essential part of every manager's responsibilities. HRM has become more and more
important in every organization. This term is defined in many different ways. In Michael
Armstrong’s handbook of Human Resource Management Practice, 11th edition, he defined
that Human resource management is a strategic, integrated and coherent approach to the
employment, development and well-being of the people working in organizations. Other
definition about HRM that defined by Ivancevich: HRM is the function performed in
organizations that facilitates the most effective use of people to achieve organizational and
individual goals.
Human resource is a core part in organizations. Every business is mainly conducted by
human, although now machines are replacement for human. For this reason, in order to
obtain goals and missions, every organization nowadays must be aware of the importance
of human resource and they also give and apply appropriate strategies to manage this
resource effectively. HRM is considered dead or live issue in modern life.
According to David J. Cherrington in his book named “The Management of Human
Resources”, HRM ‘s function include: staffing, performance evaluations, compensation
and benefits, training and development, employee relations, safety and health, and
personnel research. HRM ‘s function is to ensure that at all times the business is correctly
staffed by the right number of people with the skills relevant to the business needs.
Staffing is the first step to create a workforce for organization. Regardless of size and
organizational structure, staffing is indispensable. Staffing involves three major activities:

human resource planning, recruitment, and selection.

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2.1.2 Human Resource Planning
As defined by Bulla and Scott (1994), human resource planning is ‘the process for
ensuring that the human resource requirements of an organization are identified and plans
are made for satisfying those requirements’. Reilly (2003) defined workforce planning as:
‘A process in which an organization attempts to estimate the demand for labor and evaluate
the size, nature and sources of supply which will be required to meet the demand.’
(Michael Armstrong, Armstrong’s handbook of Human Resource Management Practice,
11th edition, p.486)
The goal of planning is to keep and improve on the human resource assets of the
organization in order to meet their needs and objectives. Human resource planning
forecasts human resource requirements of an organization such as skills, salaries, hiring
needs, layoffs, and other human resources concerns. It also involves finding ways and
means to reduce the number of employees if there is a surplus. On the contrary, if there is a
shortfall of personnel then the human resource plan should attract prospective employees
from outside of the organization.
2.1.3 Recruitment and Selection
After making human resource plans, if there is a shortage of employees, recruitment and
selection are next steps to fill the vacancies. The purpose of the recruitment and selection
process is to hire sufficient and capable staff to assist the entity in achieving its desired
objectives. Generally, the better the applicant's knowledge, skills, and abilities fit the nature
and scope of the job, the higher will be individual and organizational productivity.
Recruitment refers to organizational activities that influence the number and types of
applicants who apply for a job and whether the applicants accept jobs that are offered.
Thus, recruitment is directly related to both human resource planning and selection. (John
M. Ivancevich, HRM, eighth edition, p.186). Recruitment is the positive process as it

attracts suitable applicants to apply for available jobs. The process begins when new
recruits are sought and ends when their applications are submitted. The result is a pool of
applicants from which new employees are selected.

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Selection is the process by which an organization chooses from a list of applicants the
person or persons who best meet the selection criteria for the position available,
considering current environment conditions. (John M. Ivancevich, HRM, eighth edition,
p.211). It is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job. Selection is negative in its application in
as much as it seeks to eliminate as many unqualified applicants as possible in order to
identify the right candidates.
2.2 Process of Recruitment and Selection
2.2.1 Job description and job specification
Job description
A job description identifies the essential functions of the job and provides information
concerning the duties and responsibilities contained in a job. Such a description should
consist of accurate, concise statements that indicate what employees do, how they do it,
and the conditions under which they do it. The major items included in a job description
are: Identification, Job summary, Duties & responsibilities and Job specification. (David J.
Cherrington, The management of Human resources, fourth edition, p.183).
A job description will set out how a particular employee will fit into the organization. It
will therefore need to set out: the title of the job to which the employee is responsible for
whom the employee is responsible a simple description of the role and duties of the
employee within the organization. A job description could be used as a job indicator for
applicants for a job. Alternatively, it could be used as a guideline for an employee and/or
his or her line manager as to his or her role and responsibility within the organization. In
this step, job analysis is also important consideration to choose employees either from the

ranks of existing staff or from the recruitment of new staff, set out the training
requirements of a particular job, provide information which will help in decision making
about the type of equipment and materials to be employed with the job, identify and profile
the experiences of employees in their work tasks (information which can be used as
evidence for staff development and promotion), identify areas of risk and danger at work
and help in setting rates of pay for job tasks. Job descriptions can be used as reference
points for arbitrating in disputes as to 'who does what' in a business.
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Job specification
A job specification identifies the minimum acceptable qualifications required for an
employee to perform the job adequately. The information contained in a job specification
typically falls into one of three catelogies: general qualification requirements; educational
requirements; knowledge, skills, and ability. (David J. Cherrington, The management of
Human resources, fourth edition, p.185)
A job specification highlights the mental and physical attributes required of the
organization. The job specification is developed from the job analysis. Ideally, also
developed from a detailed job description, for each job description, it is desirable to have a
job specification. The job specification describes the person an organization want to hire
for a particular job. It is helpful in preliminary screening in the selection procedure.
Candidates who have unsuitable qualifications, educations and skills can be eliminated.
2.2.2 Process of Recruitment and Selection
2.2.2.1 Process of Recruitment
Figure 2.1: Recruitment process

Formulating a recruiting strategy
Searching for job applicants
Screening applicants

Maintaining an applicant pool

(Source: David J. Cherrington, The management of Human resources, fourth edition,
p.193)
Formulating a recruiting strategy: When vacancies rise, it recommends develop
strategies and procedures for hiring people qualified with the jobs. Base on job descriptions
and job specifications, HRD chose the strategies for recruiting.
Internal versus external recruiting

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Every organization has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the
organization itself (like transfer of employees from one department to other, promotions) to
fill a position are known as the internal sources of recruitment. Recruitment candidates
from all the other sources (like outsourcing agencies etc.) are known as the external
sources of the recruitment.
The major advantage of a promotion-from-within policy is its positive effect upon
employee motivation. Internal promotion acts as an incentive to all staff to work harder
within the organization. They will desire to distribute more for organization because their
performance is recognized. That also raises the loyalty of employees and encourages them
to work long-term in organization. Employees who are promoted for upper positions have
knowledge thoroughly about organization and its culture. Individuals with inside
knowledge of how a business operates will need shorter periods of training and time for
'fitting in'.
The disadvantages of recruiting from within are that: The organization will have to replace
the person who has been promoted. An insider may be less likely to make the essential
criticisms required to get the company working more effectively. Organization doesn’t
have fresh new mind from people outside. Promotion of one person in a company may

upset someone else, sometime can due to infighting and jealousy. In order to take more
responsibilities, employees who are promoted need to learn and to be trained about
managerial development.
The major advantage of external hiring is that people come from outside the organization
bring new mind with new ideas. Besides, they easier to see the issues exiting in
organization, they also have objective sight about organization’s strengths and weaknesses.
As a result, if they have ideas or opinions to make change without having to please
constituent groups. They create diversity and helps achieve equal employment opportunity
goals. However, there are some disadvantages of hiring outsiders. Their abilities and skills
haven’t been accessed. Besides, it will take time and cost to let them join in organization.
Other employees in organization will feel dispirit because they don’t have chance to get
higher position and even have to obey new member that they haven’t worked with before.
15


As a result, the relationship within departments and within a department may be stressful
and inconsistent. Other disadvantage that quite trouble if the new recruit worked for a
competitor and signed a no competing agreement, the formal employer may sue that new
recruit and new employer, especially both organizations work in same industry and contain
professional secrets.
Recruitment planning
According to employee requisitions, HRD knows how many vacancies need to be filled.
With that number of vacancies, HRD has to plan how many candidates will be recruit.
Because there is maybe less people accept the job offer for many reasons. Yield ratios help
organizations decide how many employees to recruit for each job opening. It is the ratio
describes the relationship between the number of people will go from one step to next step.
To select one best suitable person for a vacancy, HRD has to plan how many candidates
will go through the screening applications, how many candidates will pass the interview,
etc…
Plan for recruitment process must be done carefully and with the adoption of the

management and the HR of the organization. Base on the budget allocated for recruitment,
the organization have to analyze and work out the cost, time, documentation and schedule
to make for recruitment process. Besides, defining how to recruit, when and where to
obtain applications can not be ignored. Analysis and outline of those for recruitment
process is extremely important because they must fit the outline recruitment policy and
company's objectives.
Where and when
Base on job descriptions and job specifications, organizations need to choose the areas that
help them to select the best candidates. These areas will “show” them to where to make
recruitment and selection program. If an organization chose internal sources, it can be: Job
posting and bidding (vacancies will be announced publicly for employees); Promotion
from within (the employees are promoted from one department to another with more

16


benefits and greater responsibility based on efficiency and experience);

Contacts

and

referrals (friends and relatives of existing employees are inform to apply).
If an organization decides to choose external source, it can be: Direct applications (Many
job seekers visit the office of well-known companies on their own. Such callers are
considered nuisance to the daily work routine of the enterprise. But can help in creating the
talent pool or the database of the probable candidates for the organization); Private
employment agencies (Several private consultancy firms perform recruitment functions on
behalf of client companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists); Public employment agencies (They operate

under the management of local government or even the management of state, they help
people to get information about job placement, unemployment insurance, labor market
information, testing, employer consolation, training programs, and individuals counseling.
They support employees to prepare and find jobs), Executive search firms (They also
called headhunters. They specialize in finding the right candidate to fill open positions for
corporate clients. They usually keep an active list of skilled professionals and are
constantly on the lookout for good connections. Being on a headhunter's list means access
to job openings a candidate wouldn't likely find alone. Plus, just getting an interview for a
position comes with a sort of recommendation from the headhunter. If an organization
choose external source and especially for high positions, it usually use headhunters);
School and colleges (Educational institutes (Various management institutes, engineering
colleges, medical Colleges etc. are a good source of recruiting well qualified executives,
engineers, medical staff etc. They provide facilities for campus interviews and placements.
This source is known as Campus Recruitment); Professional associations (They attract
employees and employers through annual meetings, career fairs, career programs. Those
activities will help connect eployees and employers so that employees will get jobs and
employers will hire suitable staffs), military services (Some organizations recruit people
who are discharged from the military, because of their skills taught in military); unions
(labor unions is as a intermediary between the employer and the labor force, especially in
construction and maritime, where turnover are quite high);

the disabled (commonly,

organizations dislike to hire disabled people because of number of reasons, but in many
cases, employers satisfy with disabled people); former employees (employees has worked

17


for an organization before and they ended the labor contracts for many reasons is also a

useful source. They know about the organization and still keep relationship with other
employees. Recruiting them can save the cost for induction and training); advertisements
in the media (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);
special-event recruiting (organizations can find potential candidates through event related
to recruitment, such as job fairs or meeting about career direction, etc...); summer
internship (this source is useful for some organizations have traditionally recruit student for
some simple positions or sponsor internship program).
HRD can conduct recruiting and selecting instantly after receiving requisitions but if the
requisitions are not urgent, HRD can wait until receiving more requisitions from other
departments to implement to save the cost. In many organizations, they conduct recruiting
and selecting periodically, once or twice a year.
Entry position
According to David J. Cherrington, in his book, he stated that most organizations typically
have two major starting positions. One entry-level position is at the very bottom of an
organization. They are hired to fill an operative or production job. And they have a
potential to be promoted for first-line supervisor. The second entry-level position is lower
level of management. They have a potential to be promoted for advancement into upper
level of management. In order to realize candidates’ potential, their performances have to
be accessed regularly.
Searching for job applicants: Base on recruiting plans and strategies that have been
developed, HRD will conduct hiring program to choose the best candidates to fill the
vacancies.
Attracting recruits
To attract candidates to apply for the vacancies, an advertising program has been carry out.
The aim of the advertisement is to attract suitable candidates only, at the least cost. Depend
on which level of positions organization want to hire, advertising channel can be decided to
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choose. All vacancies will be advertised as widely as needed to attract a reasonable field of
suitable applicants and to enhance the diversity of the workforce. Managers can request
supplementary advertising elsewhere such as in the press or professional journals. Fixed
term vacancies should be advertised for the maximum period to attract the best field of
applicants. Where a continuation of a fixed term position is proposed, the vacancy must be
advertised for a new term of employment with clearly specified commencement and
cessation dates. A second appointment may be made from the same field of applicants for
an advertised vacancy provided that the manager is satisfied that further advertisement
would not attract a better field of applicants.
Effective recruiters
The recruiters play a very important role in recruiting and selecting process. They are not
only responsible for choosing the best candidates, but also represent the company's image.
In many cases, they are first people of organization that candidates meet. They have to give
candidates requirements for the vacancies, what kind of person organization need now and
in future. Besides, they need to give candidates comfort, sympathy, understanding, and
inspiring. Recruiters also show to be reliable to candidates in order to make them provide
the correct information about themselves. Recruiters must be able to improvise with a
variety of candidates to get as much information about candidates as possible.
Screening applicants
After advertising vacancies on picked channel, organization prepares to receive
applications in schedule. Number of resumes are received sometimes exceed estimate of
the organization, so the panel has to work very careful to ensure every candidates have
equal opportunities. In the process of reviewing applications, the panel should determine
which points fit with requirements for vacancies in terms of experience, education, job
skills. This will help organization to quickly identify potential candidates.
Maintaining an applicant pool
When an organization has an applicant pool, it has to analyze information delivered in
applications. The result of this is choosing candidates who most familiar with the job
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requirements. In the process, if it takes time, the organization need to inform to candidates
so that they may know their applications are viewed and considered. The organization has
to ensure that the applicant pool contains candidates who willing to take the job, and
eliminate candidates who are no longer interest in the positions.

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2.2.2.2 Process of selection
Figure 2.2: Selection process

Preliminary screening interview

Application blanks

a
p
p
l
i
c
a
n
t

e
c
t

Interview

Employment testing

Reference check

Drug testing

Final interview

Selection decision

Placement on the job

(Source: David J. Cherrington, The management of Human resources, fourth edition,
p.226)
Preliminary screening interview

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The decision to invite applicants to attend an interview is based entirely on what is written
on the application form or in the application letter and CVs which is assessed against the
criteria contained in the person specification and must be consistently applied to all
candidates. A record of the assessment must be recorded. This is especially important in the
event of any subsequent allegation of discrimination. The shortlist must be drawn up by
minimum of two people, one of whom should be the recruiting manager. All panel
members participating in short listing must be familiar with the job description and person
specification. Short listing must be based only on the information given in the application,
which is assessed against the criteria contained in the person specification and must be

consistently applied to all candidates. If there are large numbers of candidates meeting all
the criteria for the job, it will be necessary to examine the degree to which each candidate
meets the essential criteria, and by short listing those candidates who, in their application,
demonstrate the greatest ability to meet the criteria which can be tested at short listing
stage. Any potentially suitable candidates who have disabilities with skills and abilities
which broadly match the job description and person specification should also be short
listed, whether internal or external candidates.
In order to avoid allegations of favoritism, anyone involved in the selection process, which
is connected by close friendship or is related to a candidate. In situations where there are
internal candidates only, it is recommended that a third party not involved in the immediate
area should be involved in the selection process and interview process. This will help to
ensure, and be seen to ensure, that fairness is maintained and that a person is selected on
merit.
Application blank
Application blank is a useful way for organization to know about candidates. Base on job
descriptions and job specifications, requirements for vacancies are clarified and
applications blank will be designed to obtain meaningful and value information from
candidates. With a carefully application blank, the organization will make accurate
decision. Application blank commonly involves filling full information about vital
statistics, educational background, work history, and background experiences. Besides, in
application blank, candidates have to certify about the accuracy of given information. In
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