Analysing the recruitment and selection process of mizuho corporate bank, ltd ho chi minh branch

The results from her analysis haveproved her competence in working on the research and have becomegood basis for her suggestions to improving the recruitment andselection process at MIZU

- I

HO CHI MINH CITY BRANCH

Student's name: Hoang Thi f)oan Thu

-July

I would like to thank my HUFLIT University and International BusinessAdministration Department's lecturers and staff who have given me goodconditions and an opportunity to write this graduation paper

Special thanks to Mr Vo Van Thanh Tin for reading my graduation paper andoffering valuable advice and comments I am extremely grateful for hisperseverance in reviewing and correcting my draft Without his direction andencouragement, I cannot go to the end of the way

Many thanks to the Board of Management of Mizuho Bank, especially HumanResource Department's managers who made it possible for me to learn and usetheir data and other information relating to my topic

With my deep gratitude, I would like to thank my parents for supporting,encouraging me and all the things they have done for me during the time I work onthis research paper

1 51 July, 2007

HOANG THI DOAN THU

ADVISOR'S ASSESSMENTS

The author, Ms HOANG THI DOAN THU, has tried her best to work onthe literature review related to the recruitment and selection process Her

greatly contributed to the values and implication of the GraduationPaper

Most of the objectives the Graduation paper have been reached Besides,the content of the Paper has also been clear, concise, and coherent thanks

to her good academic writing skills The results from her analysis haveproved her competence in working on the research and have becomegood basis for her suggestions to improving the recruitment andselection process at MIZUHO Corporate Bank, Ltd Ho Chi Minh CityBranch

With great consistency and hard working, the author has fulfilled herassignment successfully The results of her Graduation Paper are worthbeing recognized and rewarded

3rd July, 2007

VO VAN THANH TIN MBA

Human resources are the most important assets of an organization, the success orfailure of an organization is largely dependent on the virtues of the people workingtherein It is definite that without positive and creative contributions from people,organizations cannot progress and prosper In order to achieve the goals of anorganization, therefore, we need to recruit people with requisite knowledge, skills,and experience With basic knowledge and other information, the author willaddress the area: "Analyzing the Recruitment and Selection Process of MizuhoCorporate Bank, Ltd Ho Chi Minh City Branch" In addition, there will be someuseful suggestions on improving recruitment and selection process that matcheswith our society's development and needs.

I Research Paper Obj ectives 1

II Scope and Limitation 2III Research Methodology 3

IV Contents of the Research 3

Chapter 1: INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.

HO CHI MINH CITY BRANCH

I An Overview ofMizuho Corporate Bank, Ltd

Ho Chi Minh City Branch 5

1. Establishment History 5

2 Objectives ofMizuho 6

II Organizational Structure 7

1 Functions of Business Promotion Department 7

2 Functions of Operation Department 8

3 Functions of Administration Department 9III Business Activities 10

IV

1 Importance of Recruitment and Selection Process 13

II Support1ng A'"ct1vlt1es 14

1 Job Analysis 15

2 Job Description 16

3 Job Specification 16III Alternatives to Recruitment 17

1 What is Metric? 33

2 Why Should Use It? 34

3 What to Measure? 34

v

Chapter 3: ANALYZING THE RECRUITMENT & SELECTION PROCESS

OF MIZUHO CORPORATE BANK, LTD HO CHI MINH CITY

BRANCH

I Human Resource Situation 39

1 On What Basis to Decide Recruitment and Selection? 39

2 The Characteristics of Labor Force 41

II Recruitment Sources and Methods 44

1 Advertisement 44

3 Employee Referrals 46

1 Screening Job Application 47

IV Assessing the Recruitment and Selection Process 54

1 Some Strong Points on the Recruitment and Selection Process 54

2 Some Drawbacks on the Recruitment and Selection Process 56

Chapter 4: SOME SUGGESTIONS ON THE MIZUHO COMPANY'S

I Preparation Before Recruitment 62

1 Job Analysis Methods 63

2 Stages in the Job Analysis Process 65

II Improving and DiversifYing Recruitment Sources and Methods 67

2 Internal Recruitment 68III DiversifYing the Selection Tests 69

I Personality Tests 69

2 Emotional Intelligence Tests 70

IV DiversifYing on Interview 71

, -LIST OF FIGURES

Figure 1.1: Organizational Chart ofMizuho Corporate Bank, Ltd 8

Ho Chi Minh City Branch

Figure 2.1: Decision in Job Analysis Process 15Figure 2.2: Job Analysis and other Human Resource Activities 16Figure 2.3: The Selection Process Chart 29Figure 3.1: Department's Labor Arrangement 40Figure 3.2: Recruitment Decision ofMizuho Corporate Bank, Ltd 41

Ho Chi Minh City Branch

Figure 3.3: Education Level of Employees ofMizuho Corporate Bank, Ltd 42

Ho Chi Minh City Branch

Figure 3.4: Age Level of Employees ofMizuho Corporate Bank, Ltd 43

Ho Chi Minh City Branch

Figure 3.5: Gender Level of Employees ofMizuho Corporate Bank, Ltd 44

Ho Chi Minh City Branch

Figure 3.6: The Selection Tests ofMizuho Corporate Bank, Ltd 48

Ho Chi Minh City Branch

Figure 3.7: The Selection Interview ofMizuho Corporate Bank, Ltd 51

Ho Chi Minh City Branch

Figure 3.8: Steps in Selection Process ofMizuho Corporate Bank, Ltd 53

Ho Chi Minh City Branch

Figure 4.1: Job Analysis Questionnaire 65Figure 4.2: Six Steps in Job Analysis 66

Several Issues were identified that the organization needs to address in therecruitment and selection processi. The objective of the recruitment and selectionprocess is the appointment of the most suitable person for a given post, based on acandidate's qualifications A fundamental part of the process is to ensure thatstandards of fairness and equality are maintained

1 RESEARCH PAPER OBJECTIVES

After an organization's structural design is in place, it needs people with theright skills, knowledge, and abilities to fill in that structure People are anorganization's most important resource because people either create or destroy

an organization's reputation for quality in both products and service.Attracting, developing, rewarding, and retaining the people needed to reach theorganizational goals are the activities that make up the Human ResourceManagement function

Generally, in a small business, the employees are an organization's greatestassets; without them, everyday business functions such as managing cash flow,making business transactions, communicating through all forms of media, anddealing with customers could not be completed Humans and the potential theypossess drive an organization Today's organizations are continuouslychanging The organizational change impacts not only the business but also itsemployees Human resource management works to ensure that employees areable to meet the organization's goals

If Human Resource is the most valuable asset of a corporation, which can bringthe competitive advantage to the corporation, we can say recruitment andselection are the heart of Human Resource Management So, what isrecruitment? Recruitment is seeking the people who have appropriate

1 Penny Clark, "Journal of Management Practice", p.l.

qualifications to achieve the organizational objectives Therefore, in otherwords, it is said that recruitment is selecting the right people in the right jobs atthe right time

In most of the industries, personnel always play an important role which canmake a positive contribution to the values and aims of the organization.Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch is the typical example.Though the implementation of recruitment and selection is of highest priority,besides the outstanding points, there are still some drawbacks The mainpurpose of this research is to analyze the current recruitment and trainingprocess at Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch with thefollowing objectives:

.: Defining the main concepts, principles, procedures of Mizuho recruitmentand selection process

•: Analyzing and assessing these two processes in terms of strong points anddrawbacks

•: Suggestions on improving the Mizuho Company recruitment and selectionprocess

II SCOPE AND LIMITATION OF THE RESEARCHThe research has been limited to the main parts including recruitment andselection process at Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch.From some basic concepts of recruitment and selection, the author analyzes,assesses them in terms of the benefits for the company Besides, the study alsosuggests some basic techniques that will sharpen the manager's ability torecruit and hire proficient people and help them get their feet on the groundonce they are on the payroll

All information, and evaluation are based on the real company's situation andthe author's comments

Advisor: Mr Vo Vlin Thanh Tin Page 2 Student: Hoang Thj Doan Thu

•

_ -III. RESEARCH METHODOLOGY

The required data for this research were collected through personal interviewswith the Manager and Human Resource recruiters regarding the cost and time

of different components involved in the recruitment and selection process Themethod used to work on this research is desk research that is based on thesecondary data All the major concepts, principles, procedures are taken fromtextbooks, internet and specific information and data from company's reportsand document related to recruitment and selection process

IV CONTENT OF THE RESEARCH PAPER

We begin the topic with the introduction of objectives, the scope andlimitation, the search methodology, and the contents of the research report.Then, in the body of the research paper, we describe the following chapters:.: Chapter 1: Overview of Mizuho Corporate Banks, Ltd Ho Chi Minh CityBranch In this chapter, the history, business operation of the company will

•: Chapter 4: Suggestions on improving the recruitment and selection process

of Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch The lastchapter's content points out some suggestions to make the company'sprocess better

Advisor: Mr Vo Van Thanh Tin Page 3 Student: Hoang Thj Boan Thu

Chapter 1: INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.

HO CHI MINH CITY BRANCH

INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.HO CHI MINH CITY BRANCH

1 An Overview of Mizuho Corporate Bank, Ltd Ho Chi Minh Branch

2 Organizational Structure

3 Business Activities

Advisor: Mr Vo Van Thanh Tin Page 4 Student: Hoang Tlij f)oan Thu

_-"T"'-=

In today's fast moving world, more and more foreign trade activities happen.Therefore, banking occurs and plays an intermediary role to make the transactionseasier Nowadays, banking becomes more popular all over the world and with itsappearance, many problems have been solved In such a situation, MizuhoCorporate Bank, Ltd Ho Chi Minh City Branch is established to contribute to thesatisfaction of human needs

This chapter will introduce Mizuho Corporate Bank, Ltd Ho Chi Minh CityBranch, a branch of Dai-Ichi Kangyo Bank, Limited (abbreviated as DKB)through its establishment, and organizational structure

I AN OVERVIEW OF MIZUHO CORPORATE BANK, LTD HO CHI MINHCITY BRANCH

"Channel to Discovery" is a slogan of Mizuho Company which means thecompany will play the role to realize today's dream and discoveriespossibilities that lie ahead and to create a better future

Transaction Office: Unit 1803, 18th Floor, SunWah Tower 115 Nguyen HueBoulevard, District 1 Ho Chi Minh City

Advisor: Mr Vo Van Thanh Tin Page 5 Student: Hoang Thi Doan Thu

Chapter 1: INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.

HO CHI MINH CITY BRANCH

Location of Head Office: 1-3-3, Marunouchi, Chiyoda-ku, Tokyo

2 Objectives ofMizuho

Mizuho Corporate Bank provides optimal solutions to the increasinglydiverse and sophisticated needs of customers in the areas of both financeand business strategies, focusing its efforts on serving major corporationsfinancial institutions and their group companies, public sector entities, andoverseas corporations including subsidiaries of Japanese Corporations

More especially, it is renewing its organization to dramatically strengthenits ability to provide financial solutions through competitive services at theglobal level

In addition to taking full advantage of the functions of the group companies

of Mizuho such as Mizuho Bank, Mizuho Securities and Mizuho Trust andBanking, it is working in broadly-based cooperation with foreigninvestment banks and various types of investment funds as it invests a "dealafter deal" marketing strategy that offers customers cutting-edge financialsolutions on a continuous, multi-faceted basis.2

2 Mizuho Corporate Bank, Ltd Company's website

II ORGANIZATIONAL STRUCTURE

Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch provides solutionsthat are a perfect fit to the increasingly sophisticated and diverse financial andcorporate strategy needs of major domestic and global companies3. MizuhoCompany has the simple organization structure which has been divided intothree mam departments: Business Promotion Department, OperationDepartment, and Administration Department Every department has its ownmanager, officers and senior clerks

1 Functions of Business Promotion Department

The manager of this department takes full responsibility for threeadministrations:

.: Marketing Administration: advertising new products, introducing thebenefits of using the products

•: Business Promotion Administration: the administration is responsiblefor not only promoting products, but also consulting corporations aboutusing what kinds of products

•: Corporate Banking Administration: The responsibilities of thisadministration are:

To check the validation of information from the transactions whichare received from the Operation Department

To give the instructions to the Operation Department to perform thetransactions which are checked carefully

3 Mizuho Corporate Bank, Ltd Company's website.

Chapter 1: INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.

HO CHI MINH CITY BRANCH

Business

Promotion

Department

OperationDepartment

AdministrationDepartment

Assistant tomanager

Assistant tomanager

SeniorClerk

SeniorClerk

Assistant tomanager

Assistant toManager

2 Functions of Operation Department

After receiving the transactions from their customer, this department will

send to Corporation Baking Administration Section which will check

whether the information of the transactions is valid or not Then, the

Section will send the transactions back to the department and at the same

time give instructions to the department whether to perform or not

Advisor: Mr Vo Van Thanh Tin Page 8 Student: Hoang Thi Doan Thu

3 Functions of Administration Department

This department is divided into three sections including the General Affairand Human Resource Section, the Accounting and Compliance Section,and the Information Technology Section

a General Affair and Human Resource Section: This section is responsiblefor managing the activities which related to inside company

The functions of General Affair:

.: Organizing meetings

•: Managing office supplies (fax, photocopy, etc.)

•: Developing and managing the information systems of the company.The functions of Human Resources Department (HRM):

.: Providing significant support and advice to line management

.: Providing the Mizuho Company with well-trained and motivatedemployees

•: Communicating HRM policies to all employees

•: Training internal employees to build up a skillful and professionalstaff

In summary, attraction, retention, and development of highly qualifiedpeople are a source of competitive advantage of the company, and arethe responsibility of Human Resource Department

b Accounting and Compliance Section

This section manages the company's budget, information, anddetermines the cash flow Moreover, it usually updates financialinformation which helps director or manager make decision

Chapter 1: INTRODUCTION OF MIZUHO CORPORATE BANK, LTD.

HO CHI MINH CITY BRANCH

c Information Technology Section

Many activities have to be done through modem technology andcomputers such as:

.: Supporting Customer Department, anticipating and identifYingtechnological trends, and fostering a broad understanding of ourcustomers' business functions

•: IdentifYing, providing, maintaining and replacing informationtechnology-related tools and systems, which support the company'smlsslOn

•: Providing training and education to develop a technology literateworkforce characterized by a standard level of core skillcompetencies Working closely with customer department to identifYand support their information technology needs

•: Treating the customer with respect, addressing problemsimmediately and always following up regardless of the result

III BUSINESS ACTIVITIES

Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch offered new financialservice to meet the needs of the Japanese local corporations and the Japaneseinternational corporations Mizuho Company provides loan products, Letter ofGuarantee, Domestic and International transaction etc to corporate customerswho are managing their business in an environmentally conscious manner.Here are the company's services:

.: Deposit-taking

.: LlC issuance, acceptance and confirmation

Advisor: Mr Vo Van Thanh Tin Page 10 Student: Hoang Thj DoanThu

.: Acceptance and negotiation of import/export bills

.: Remittance, forward exchange contracts

.: Guarantees

SUMMARY

The chapter has covered an overview of Mizuho's operation and businessactivities Regardless of new establishment, Mizuho has accomplished manyremarkable achievements on business In the near future, banking is going to bemore and more developing, and the need of recruiting new employees is essential.Therefore, recruitment and selection activities are the tools which should beconsidered first To understand clearly about the recruitment and selection roles,the author will represent this issue through Chapter 2: Literature Review

Chapter 2: LITERATURE REVIEW

LITERATURE REVIEW

1 Importance of Recruitment and selection process

1 THE IMPORTANCE OF RECRUITMENT AND SELECTION PROCESSPeople are the most significant and the largest investment that the organizationmakes and its success or failure is totally dependent on its skills in investing inand utilizing people effectively Viewed from this perspective, recruitment andselection generally represents one of the most important human resourcefunctions It's very important to link good quality recruitment and servicedelivery identically However, its importance is often overlooked Mistakesmade in respect of recruitment and selection require costly and extensiverescue measures at other levels5.

People often say: "The first step is the hardest" so the hiring decision isconsidered as one of the most important tasks of the managers Recruitingpeople who are wrong for the organization can lead to increased laborturnover, increased costs for the organization, and lowering of morale in theexisting workforce Such people are likely to be discontented, unlikely to give

up their best, and end up leaving voluntarily or involuntarily when theirunsuitability becomes evident They will not offer the flexibility and

4 Schermerhorn, Management, 7 th Edition, www.wiley.com/college/chermerhorm John Wiley and Sons, Inc p.3l2.

5 Ministry of Manpower, Recruitment and Selection "Case study series 1/2004" , Printed in Singapore, Jan

2004, p.2.

Chapter 2: LITERATURE REVIEW

= .: :.-_ -commitment that many organizations seek Managers and supervisors will have

to spend extra time on further recruitment exercises

The aim of recruitment and selection process should be:

• recruit high quality staff with the right skills on the appropriate place todeliver the key objectives of the position and organization;

• ensure that recruitment is effective as a key public relations exercise for allinvolved;

• ensure that recruitment is fair, efficient and cost-effective;

• ensure that equality of opportunity is considered as an integral part ofrecruitment practice, thus encouraging diversity

The effectiveness of recruitment and selection is in itself dependent on thequality of human resource planning, proper job descriptions and staffingrequirements dictated by transformation and service delivery objectives6.

Imagination if the company does not have enough job description, its employeedoes not know exactly what they are required for doing, work cannot beaccomplished and company objective cannot be achieved! Is that meanslacking of these area leads to an ever-increasing vicious circle in the HumanResource Management?

II SUPPORTING ACTIVITIES

Job analysis, job description and job specification can provide usefulinformation to a business in addition to serving as recruitment instruments.These documents are the starting step that will not only help the employers toselect the best person for the job but also enable them to justifY your decision

6Peter Wilson and Sue Bates, The Essential Guide on Managing Small Business Growth, John Wiley and

Sons, Inc., p 145.

Advisor: Mr Vo Van Thanh Tin Page 14 Student: Hoang Thi f)oan Thu

MethodsQuestionnairesInterviewsObservation

Prepared into:

Job descriptions

Data resourcesEmployeesSupervisorsManagers

Conducted by:

HR specialistsOutside consultantsSupervisors/

Reviewed by:

HR specialistsEmployees/

Supervisors/ managersFigure 2.1: Decision in Job Analysis Process

Source: South-western Educational Publishing, Human Resource Management, July 1999

1 Job analysisEffective Human Resource Management requires that job analysis be thefoundation for a number of other human resource activities7• Job analysis isthe process of examining jobs in order to identify the key requirements ofeach job The process of analyzing jobs in organization requires planning ofseveral factors It can be carried out by direct observation of employees atwork, by finding out information from interviewing job holders, or byreferring to documents such as training manuals Information can becollected directly from the person carrying out a task or from theirsupervisory staff In most companies, however, job analysis is expected to

be part of the general skills of a personnel officer It is most oftenperformed because of changes in the nature of jobs Figure 2.1 indicatessome of the considerations are how it is to be done, who provides data, andwho conducts and uses data so that job description and job specification can

7 Robert Adam, "Why Should I Conduct a Job Analysis?", AAIM, URL:

http://www.aimmconsult.com/JAreference.html (1998)

Advisor: Mr VOVan Thanh Tin Page 15 Student: Hoang Thi £loan Thu

Chapter 2: LITERATURE REVIEW

be prepared The most fundamental use of job analysis is to provide theinformation necessary to develop job description and specification

"0el~ti°0

Unionrelations

2 Job description is a document that provides information regarding the tasks,duties, and responsibilities of the job8. It could be used as ajob indicator forapplicants for a job Alternatively, it could be used as a guideline for anemployee and his or her line manager as to his or her role and responsibilitywithin the organization Job descriptions must be both relevant andaccurate They should provide concise statements of what employees areexpected to do on the job and indicate what employees do, how they do it,and the conditions under which the duties are performed

Figure 2.2: Job Analysis and Other Human Resource Activities

3 Job specification goes beyond a mere description In addition, it highlightsthe mental and physical attributes required of the job holder Jobspecification is an analysis of the kind of person it takes to do the job thatlists the qualifications While job description describes activities to be done,

8 R Wayne Mondy, Robrt M.Noe and Shane R Premeaux, Human Resource Management, 8 th Edition,p.88.

job specification lists the knowledge, skills and abilities and individualattitude to perform a job satisfactorily Knowledge, skills and abilitiesinclude education, experience, work skill requirement, personal abilities,etc It is important to note that accurate job specification identifY whatknowledge, skills and abilities a person needs to do a job, not thequalification the current employee possesses

III ALTERNATIVES TO RECRUITMENTBefore initiating the recruitment process, alternatives to recruitment should beinvestigated by the manager, e.g can the job responsibilities be mixed withanother job? Alternatives to recruitment commonly include overtime,outsourcing, and contingent worker

1 Overtime is one of the popular solutions which can be applied in manycompanies It may help both employers and employees Employer benefits

by avoiding recruitment, and training costs The employees gain fromincreased income during the over time period However, this solution alsocaused some internal difficulties It is believed that they have to pay more

in a long term but receive less Besides, the employees will be exhaustedand less enthusiastic when they get back at the normal level

2 Outsourcing: Apart from the solution mentioned above, the Westerncountries still apply subcontracting method or also called outsourcing It is

a process of transferring responsibility for an area of service and itsobjectives to an external provider9. Outsourcing includes two parts: outmeans exterior and source refers spring The transferring of usingoutsourcing helps the businesses reduce remarkable in administration costs,managing costs, while the quality and effectiveness of the work still beensured Depending on the form as well as the field, using outsourcing that

9R Wayne Mondy, Robert M.Noe and Shane R Premeaux, Human Resource Management, 8 th Edition, p.121.

Advisor: Mr.VO Van Thanh Tin Page 17 Student: Hoang Thi Doan Thu

Chapter 2: LITERATURE REVIEW:.- - _

the budget can be saved about from ten to forty percent.1O In conclusion, it

is said that cutting down the cost is usually an effective key to helpbusinesses increase their profit Here, outsourcing is not only help thecompanies reduce their costs but also use information technology andmodern management skills in business activities, allows the smallbusinesses solved bigger tasks, developed faster

3 Contingent worker: this is also a method to solve shortage of workers,especially in the seasonal fluctuations or random fluctuations Contingentworkers are employees who do not have an explicit or implicit contract forlong-term employment However, when employing contingent workers, it

is important to understand their role in the company While they areindispensable members of the team, they are not the company's employeesand therefore, operate within a different management structure

IV RECRUITMENT

Recruitment is a very important element not only of human resources, but ofthe overall company's strategy as well The people we place in positions willdecide on the company's success or failure, on its problems and solving them,finally on its competitive edge or fall.11

The process of marketing needs to be undertaken carefully so as to ensure thebest response at the least cost The object is to get a good selection of goodquality candidates Possible sources and methods to consider are:

I Internal source

If the managers decide to recruit, be sure that their existing employeesknow about this opportunity They are willing to concern their employees'abilities, degree of understandings, to evaluate exactly whether the

10 According to the information from Mizuho Corporate Bank, Ltd Ho Chi Minh City Branch.

IIPhD Steven Stralser, MBA in a Day, John Wiley and Sons, Inc., p 30.

candiadtes are suitable in this new position or not, because new employeesare always unknown Recruitment is often associated with findingemployees outside At the beginning of this process, it is worthwhile toanalyze human resources and use internal recruitment as the source to findcandidates for the vacancy.

Internal sources refer to the available current employees within thecompany This is a complex procedure Internal recruitment helps promotegreater opportunities within an organization for employees' career growthand increases their engagement levels In internal recruitment, there arefour methods to follow:

- First, the manager makes a contact with the line managers

- Second, he or she has to send out a message about this vacancy

- Third, he sends information about the vacancy and places it in internalinformation channels; using the book of takeovers (successions), i.e a bookwith information about the current people in the positions as well as a list ofpotential candidates, able and willing to take over in case of a vacancy Thisresembles an organizational diagram with the name of position holder and,

in order of priority, names of possible future candidates for the position

- Finally, using the qualification book, which is a data base of employees

on the non-managerial level, facilitates decisions about promotions orinternal transfers

Planning internal recruitment must begin with job description, i.e.specification, requirements, duties and expectations from the employee It

is necessary to connect internal recruitment and appraisal and developmentprograms This shows that the company cares for employees and usesadvanced methods to make human resources policies

Advisor: Mr Vo Van Thanh Tin Page 19 Student: Hoang Thj f)oan Thu

Chapter 2: LITERATURE REVIEW

The internal recruitment source obtains many advantages First,considerable savings can be made Individuals with inside knowledge ofhow a business operates will need shorter periods of training and time forprobation Moreover, the organization is unlikely to be greatly interrupted

by someone who is used to working with others in the organization.Another benefit is that the internal promotion acts as an incentive to allstaff to work harder within the organization Finally, from the firm's point

of view, the strengths and weaknesses of an insider have been assessed andknown already There is always a risk attached to employing an outsiderwho may be just a success on paper

2 External source

In case of ineffective or impossible internal recruitment or the companywants to expand the workforce, the employer will be forced to carry outexternal recruitment External recruitment makes it possible to draw upon awider range of talent, and provides the opportunity to bring new experienceand ideas into the business The following needs require externalrecruitment:

(I) to fill entry-level job

(2) to acquire skills not possessed by current employee

(3) to obtain employee with different backgrounds to provide new ideas.External recruitment has often been used as a necessary tool when we have

to trade off the need for outside talents with the incentives of insideworkers However, it also has a positive role to play By recruitingexternally, the firm decreases not only the chance of promotion , but also theeffectiveness of negative activities Depending on the position with specificqualification required, employees may be attracted from a number of

Advisor: Mr Vo Van Thanh Tin Page 20 Student: Hoang Thj Doan Thu

sources These following sources that are the most useful and commonpreferred by many companies can be divided into five kinds:

• Advertisement: It is probably the most common method Advertisementallows the employer to reach a wider audience The choice of advertisingmedia such as newspaper, Internet, etc depends on the requirement for theadvertisement to reach a particular audience and, crucially, the advertisingbudget Remember that information which the company promotes inadvertisement must be clear, specific and basis such as: the company'sname, location, position, salary, interests and working hours Employershould give brief description about the company and position recruitment

In addition, he has to require the ability, experience and diploma that thecompany needs from the applicants

• Internet: It has been becoming an efficient and effective recruitment tool forthe recruiters and applicants They know how to exploit the Internet system

to find out and recruit the competent applicants, how to inform therecruitment news in the websites including local websites and internationalone Most companies have discovered the advantages of websites inpresenting almost unlimited quantities and kinds of information about thefirm and about the job openings Not only is the Internet a great way to getthe recruiting information for minimal cost, but also Web pages are on thejob twenty-four hours a day, seven days a week.12

• Employment agencies: These businesses specialize III recruitment andselection They often specialize in recruitment for specific sectors such asfinance, secretarial, etc they usually provide a shortlist of candidates based

on the people registered with the agency They also supply temporary orinterim employees The main advantages of using an agency are the

12Bob Nelson and Peter Economy, The Management Bible, John Wiley and Sons Inc,p 54.

Chapter 2: LITERATURE REVIEW

specialist skills they bring and the speed with which they normally providecandidates They also reduce the administrative burden of recruitment.However, hiring the employment agencies may be expensive; the cost ispaid by the company who needs employees It is about thirty percent of thefirst year wages of anyone employed.!3 They provide a short list of CV, or

if you choose the prestigious agencies, they will meet the applicants beforedeciding the list to send

• Employee referrals: When the company has a recruitment demand, theemployer should disseminate by worth of mouth to all the employees,incentive them base on their current relationship to find the competenceapplicants Many organizations have found that their employees can serve

an important role in the recruitment process by attractively solicitingapplicants from their friends and associates This is a rather helpful way.The advantages are the company can have a qualified person It is easy tounderstand that when the employees like their work in the company, theyusually want their friends to work together This is a very effective jobapplicant source, especially if those making the referrals are goodperformers People usually make friends with people similar to themselves.Applicants referred through this process will tend to have a more realisticpicture of an organization Moreover, qualified people may be reached atpractically no cost There are disadvantages, however People might expectthat all referred applicants should receive job offers, when hiring allreferrals is likely to be impossible Employee referral programs may beperceived as discriminatory in practice, therefore, caution should also betaken to ensure that a referral program does not result in discriminatoryhiring practices

13Nguyen Huu Than, Quan Tri Nguon Nhan Lue, 7th Edition., Nha xuat ban thong ke.

• Headhunters: They are the recruitment agents who provide a morespecialized approach to the recruitment of key employees or seniormanagement They tend to approach the individuals with a good reputationrather than rely on the registered applicants They often use privilegedindustry contact to draw up a short list The cost of using headhunters orrecruitment consultant is high However, using this service will save time torecruit and cost for basic training The employer has to specifY exactly hisrequirement He always provides the headhunters with feedbackinformation if the list of CV or the applicants they provide are not suitable.The company should sign a contract with compensation clause if theapplicants employed are inefficient in their work For instance, if theapplicant employed quits the job after one month, the headhunter will payback fifty percent of the cost the company paid, or recruit another for thecompany.

1 Selection criteria

Selection criteria describe the personal qualities, skills, abilities, andknowledge if any person needs to perform the role effectively They areused to identifY the right person for the role From the organization's point

of view, selection criteria can help to standardize the recruitment process.They provide a guide to employees and recruiters as to essential and

14R Wayne Mondy, Robert M.Noe and Shane R Premeaux, Human Resource Management, 8 th Edition, p.175.

Advisor: Mr VOVan Thanh Tin Page 23 Student: Hoang Thi Doan Thu

Chapter 2: LITERATURE REVIEW

desirable requirements to look for in applicants and can help reducepersonal and social bias in selection decisions and to ensure that the mostsuitable candidate is selected

~ Formal education: As formally used, the term formal education refers tothe structured educational system provide by the state The criteria areused to consider the applicants' level of ability, so the employer willknow that whether they need to be trained more or not

~ Experience and past performance: The information about the experiencetells the employer that this applicant has been through how many jobs,what kinds of jobs is he familiar with, and then the employer cancompare with the vacancy Past performance shows the applicant'sperformance ability It is also considered as historical information thatallowed the employer has a basic data to trust the applicant ability Inaddition, with this kind of criteria, the employer can determine howmuch he will pay for this applicant Experienced employees are worththeir weight in gold Not only are you more likely to get a better, qualityproduct in less time, but you also have someone that is ready to perform

at maximum to potential in a few days rather than the weeks or months

it would take to train someone who is not experienced

~ Personal characteristics include hard-working, good attitudes,responsible and stable

•: Hard-working: Employees who are willing to work hard often gobeyond the call of duty in serving customers and in attending withthe needs of the organization As competition in global marketplacecontinues to heat up, employees who go above the call of duty may

be the one thing that differentiates organizations that succeed in thelong run from the organizations that do not

Advisor: Mr Vo Van Thanh Tin Page 24 Student: Hoang Thi f)oan Thu

.: Good attitudes: It means people who are positive, friendly andwilling to help customers, clients or coworkers Skills are importantbut attitudes are even more important From that, the employer candecide whether the applicant is appropriate for this position or not : Responsible: Employees must take responsibility for their work;employees constantly try to shift the blame for their problem to otherpeople or other things are employees who should not be employed

•: Stability: It is an important quality in the employees hired, the lastthing the employer wants is to hire someone today and then find outthat he or she is already looking for the next position tomorrow.Consider how long the job candidate worked with his previousemployer and why he left

In conclusion, selection criteria help to standardize the selection process for anemployer, which is particularly useful if there are large numbers of applicants

to assess Imagine how difficult it is for an employer to be objective when theyhave to read through hundreds of applications In these situations, employerscan more easily make their decision on who to interview according to how wellcandidates have demonstrated in writing that they meet the selection criteria

2 Selection process

~ Step 1: Preliminary screening

Typically, the number of responses an employer receives for anadvertised position far exceeds the number of job openings.Consequently, only the most promising among the pool of candidateswill be selected for a formal interview or otherwise continue toparticipate in the selection process Initial screenmg of applicants isusually based on an assessment of a candidate's experience andqualifications against the job's requirement The use of screening may

Chapter 2: LITERATURE REVIEW

be a useful way of filtering quickly through a huge volume of applicants

or sorting applicants Although screening will never be an entirelyscientific procedure, it certainly must be systematically completed Atwo-level screening process may be completed for candidates whosequalifications are still unclear Sometimes a simple telephone call to thecandidate will clarifY the situation so that a decision can be made

When the paper screening is complete, the functional manager willreview the list of the most qualified candidates The Human ResourceRepresentative might want to review some of the findings from thescreening process in order to obtain guidance on the employer'spreferences for formal interviews or other interventions

~ Step 2: Employment Tests

Employment tests are devices that assess the probable match betweenapplicants and job requirements Tests are used more frequently forcandidates for hourly-paid jobs than management openings because jobspaid hourly usually have a limited number of skills that are more easilytested In brief, if tests are used for selection purpose, it is recommendedthat they are:

specifically related to the job requirements and measure applicants'actual or potential ability to do or be trained for the job

professionally designed whenever possible

reviewed regularly to ensure that they remain relevant and free frombias in content or scoring

~ Step 3: Employment Interviews

Employment interview is a goal-oriented conservation in which theinterviewer and applicant exchange information 15. Interviews areextremely important in selection process because of the informationexchange they allow It is the time when both the applicants andpotential employer can learn a lot about each other This type, of course,

is not a perfect tool in itself It has weaknesses itself because it judgespeople in such unreal situations and judge about long-term careerdevelopment within a very short period of time presentation However,

it remains the best recruitment tool available and is universally used asthe short-listing process The approach is one of the key stages of therecruitment and selection process

~ Step 4: In depth Interview

An in-depth interview is design to integrate all the information fromapplication form, tests, and reference checks, so that the decision can bemade It can lead to increased insight into people's thoughts, feelings,and behavior on important issues This type of interview is oftenunstructured and therefore permits the interviewer to encourage aninformant to talk at length about the topic of interest

The in-depth interview uses a flexible interview approach It aims to askquestions to explain the reasons underlying a problem or practice in atarget group You can use the technique to gather ideas, to gatherinformation, and to develop materials for drug use interventions

Student: Hoang Thj Doan Thu

15R Wayne Mondy, Robert M.Noe and Shane R Premeaux, Human Resource Management, 8 th Edition, p.190.

Advisor: Mr.Vo Van Tha

Chapter 2: LITERATURE REVIEW

~ Step 5: Reference and Background Checks

Believe it or not, a lot of people lie about their experience The pointhere is that resume and interview are great hiring tools, but the recruitersneed to conduct a reference check to confIrm whether or not thecandidates are who they say they are before the recruiters make a hiringdecision In some organizations, the managers may be expected to doreference checks, while in other organization the human resourcesdepartment takes on the responsibility Whatever the case conduct anexhaustive background check before he or she make an offer ReferenceChecks are inquiries to previous employers, academic advisors,coworkers, and acquaintances regarding the qualifIcations, experience,and past work records of a job applicant.16 Reference checks areinterviews with people who know the candidate, e.g supervisors,subordinates, and peers They can provide information on dates ofemployment, job title and duties, how well the job was done, keycompetencies and behaviors, identifIcation of key strengths, whether thecandidate is recommended for the position applied for, name of anotherperson who could evaluate candidate's performance, and additionalcomments regarding the candidate's job performance However,reference checks have low predictive validity Moreover, this is mainlyused as a pre-employment check to ascertain the truthfulness ofcandidates

~ Step 6: Final decision to hire or reject

Whether made by the supervisor or by the Human ResourceDepartment, the fInal hiring decision marks the end of the selection

16 Schermerhorn, Management, 7 th Edition, www.wiley.com/college/chennerhonn John Wiley & Sons, Inc., p 316.

I

-process Importantly, the emphasis in selection must always becomprehensive and focus on all aspects of the person's capacity toperform in a given job After all, the selection decision poses majorconsequences for organizational performance and for the internalenvironment or work climate

Reception Jobs open? - YesJob Preview/ Interest screen

Job Placement

Figure 2.3: The Selection Process Chart

Source: Andrew J Dubrin, Essentials of Management, South-Western Educational

Publishing; 5th Edition

Advisor: Mr VOVan Thanh Tin Page 29 Student: Hoang Thi Doan Thu

Chapter 2: LITERATURE REVIEW

3 Selection methods

>- Interview

• Unstructured interview: It is also called nondirective interviews.Unstructured interview involves little planning on the part of theinterviewer As such, interviews tend to vary greatly betweeninterviewees The prevalent use of unstructured interviews generallylies in the organization's lack of time and resources to conduct amore structured interview About the validity, this method has lowvalidity in assessing person that is fit in the organization or in agroup

• Structured interview: It is also called directive interviews, thequestions and acceptable responses are specified in advance and theresponses are rated for appropriateness of content The interviewerfollowed a printed form to ask a series of questions Commentsprinted beneath the questions then guide the interviewer III

evaluating the answers Types of structured interviews include:

• Criterion-based interviews: This form is based on pre-plannedstandard questions ranging over all aspects of the job Theinterviewers select some questions to explore the requirementneeded for effective performance of the job Criterion-basedinterviews also attempt to probe only specific skills orcompetencies relevant to the job

• Situational or behavioral interviews: These are used to projectcandidates into the future by asking "what if' questions Thequestions can be chosen to reflect aspects of the job which areknown to have difficulties or are critical for successfulperformance These areas could be identified from job analysis

I

-~ Employment Tests

• Job - knowledge Tests: Job knowledge tests typically use multiplechoice questions or essay type items to evaluate technical orprofessional expertise and knowledge required for specific jobs or

professions There are six advantages of using this type First, they

have been demonstrated to produce valid inferences for a number oforganizational outcomes, such as job performance Second, it can

reduce business costs by identifYing individuals for hiring,promotion or training that possess the needed skills and abilities

Third, the tests are typically less likely to differ in results by gender

and race than other types of tests In addition, they may be viewedpositively by test takers who see the close relationship between thetest and the job Besides, these tests will not be influenced by testtaker attempts to impression manage or fake responses Finally, withthese tests the employers can be provided useful feedback to testtakers regarding needed training and development However, thistype also has some drawbacks such as they may require frequentupdates to ensure test is current with the job Moreover, the testsmay be inappropriate for jobs where knowledge may be obtained via

a short training period Lastly, they can be costly and consuming to develop, unless purchased off-the-shelf

time-• Work - sample Tests: Tests in which candidates actually perform apart of the job so that success in doing the part of the job can bedetermined These tests typically focus on measuring specific jobskills or job knowledge, but can also assess more general skills such

as organizational skill, analytic skills, and interpersonal skills Worksamples and simulations typically require performance of tasks thatare the same or similar to those performed on the job to assess their

Advisor: Mr Vo Van Thanh Tin Page 31 Student: Hoang Thj £)oan Thu