Improvement of recruitment and selection process in HKT Consultant Jsc

The preparation of this report “Improvement of recruitment and selection process in HKT Consultant Jsc.” would not have been possible without the enthusiastic support and contribution of all people involved in my internship process. Firstly, I would like to express my gratitude to Ms. Trần Thị Thu Giang, Dean of Faculty of Foreign Languages for giving me the opportunity to conduct this study to do the necessary research work and to use the departmental data. I am also deeply indebted to my supervisor Ms Nguyễn Phương Hoài whose help, stimulating suggestions and encouragement helped me in all the time of research for and writing of this report. I have furthermore to thank HKT Consultant Jsc. particularly Human Resources Department for allowing me to do internship in the company. I especially owe my thanks to my colleagues from the Department of Human Resources particularly the director of HKT Consultant Jsc., Mr Kiem Pham for all their valuable help and support. Once again, great deal appreciated goes to all people that have encourage, support and help me in completing my internship successfully.

ACKNOWLEDGEMENTThe preparation of this report “Improvement of recruitment and selection process in HKT Consultant Jsc.” would not have been possible

without the enthusiastic support and contribution of all people involved in myinternship process

Firstly, I would like to express my gratitude to Ms Trần Thị Thu Giang,Dean of Faculty of Foreign Languages for giving me the opportunity to conductthis study to do the necessary research work and to use the departmental data I

am also deeply indebted to my supervisor Ms Nguyễn Phương Hoài whose help,stimulating suggestions and encouragement helped me in all the time of researchfor and writing of this report

I have furthermore to thank HKT Consultant Jsc particularly HumanResources Department for allowing me to do internship in the company Iespecially owe my thanks to my colleagues from the Department of HumanResources particularly the director of HKT Consultant Jsc., Mr Kiem Pham forall their valuable help and support

Once again, great deal appreciated goes to all people that have encourage,support and help me in completing my internship successfully

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

TABLE OF CONTENTS TABLE OF ABBREVIATIONS ii

TABLE OF FIGURES ii

EXECUTIVE SUMMARY iii

INTRODUCTION 1

CHAPTER I: INTRODUCTION OF HKT CONSULTANT JSC AND HUMAN RESOURCE DEPARTMENT 4

1 Company overview 4

2 Human resources department and recruitment – selection process in HKT Consultant Jsc 5

2.1 Roles and functions of human resources department in HKT Jsc .5

2.2 Recruitment and selection process in HKT Jsc 7

CHAPTER II: THEORETICAL FRAMEWORK 10

1 Human resource management 10

1.1 Definition 10

1.2 Functions of human resources management 11

2 Recruitment and selection 11

2.1 Recruitment process 12

2.2 Factors influencing recruitment 18

2.3 Selection process 18

2.4 Factors influencing selection 21

CHAPTER III: ANALYSIS AND FINDINGS 23

1 Recruitment process 23

1.1 Recruitment preparation 23

1.2 Sources of recruitment 24

1.2 General discussion of recruitment process in HKT Consultant Jsc 26

2 Selection process 29

2.1 Procedures of selection in HKT Consultant Jsc 29

2.2 General discussion of selection process in HKT Consultant Jsc 31

CHAPTER IV: RECOMMENDATIONS 33

1 Recommendations for recruitment process 33

1.1 Recruitment preparation 33

1.2 Sources of recruitment 34

2 Recommendations for selection process 35

2.1 Scanning and checking 35

2.2 Testing and interviewing 35

CONCLUSION 37

APPENDIX REFERENCES iv

TABLE OF ABBREVIATIONS

Jsc : Joint stock company

TABLE OF FIGURES

Chart 1: Number of job quit in HKT Jsc during 2009-2011 8

Chart 2: Revenue by year of HKT Jsc during 2009-2011 9

Figure 1: Organizational structure of HKT Consultant Jsc 5

Figure 2: The Selection Process by Khan (2008, pp.104) 19

Table 1: Advantages and disadvantages of internal and external sources of recruitment 17

Table 2: Effectiveness of sources of recruitment in HKT Consultant 28

EXECUTIVE SUMMARY

This report is intended to provide a brief but comprehensive analysis on thecurrent recruitment and selection process of Human Resources Department ofHKT Consultant Jsc in terms of problems existing in HKT’s recruitment andselection system

The organisation selected is a management consultanting company It isbased in Hanoi and has been established for several years The company employsmore than seventy employees

Observation, data analysis, interview questions and a questionnaire are used

to research and gather information about the organisation’s recruitment andselection Data collected shows that although the revenue of HKT shows a lightincrease, this increase does not go along with huge resources used over the time.This situation is the result of mistakes in the process of recruitment andselection in the organization Some problems in the process leads to job quitunfitted employees and job dissatisfaction in the organization

Therefore, improvements in the process of recruitment and selection isrequired to help HKT Consultant Jsc overcome its drawbacks and attain greatercompetitive strength among other consulting companies in Hanoi area.Recruitment preparation needs to have a clear method of communicating requestsfor vacant or new positions - such as a requisition form or memo Employmentagencies and campus employment are beneficial sources to use for employinghigh skilled workers Metropolitan daily newspapers are a good way of attractingsuitable professional candidates for vacant positions Advertising internally to fillpositions and having a structured interview helps ensure that the right applicant ismatched with the right job Advertising internally also helps increasecommitment amongst employees Finally, by developing an orientation programand implementing it with new employees, the organisation can decrease staffturnover and increase commitment

INTRODUCTIONIntroduction of research topic

There is no doubt that the business world is rapidly changing As part of anorganization then, Human Resources Management (HRM) should be wellequipped to deal with the effects of the changing world of business HRM mustunderstand the implications of globalization, technology changes, workforcediversity Changing skill requirements, continuous improvement initiativescontingent workforce, decentralized work sites and employee involvement arethe issue for confront Now it is a big challenge for the HRM to support theorganization by providing the best personnel for the suitable position in shortestpossible time Starting with recognizing the vacancies and planning for them is agreat task Moreover attracting the suitable candidates and selecting the bestperson in time is a challenge An effective approach to recruitment and selectioncan help an organization to maximize the competitive advantages by choosingthe best pool of candidates quickly and cost efficiently But successfulrecruitment and selection can be costly and time-consuming Still, recruitmentand selection is crucial for a business, because unsuccessful recruitment andselection can be responsible for the failure of the business

HKT Consultant Jsc is a consulting company, so it is vital for the company

to have good human resources However, during the past years, the revenue ofthe company has not goes along with resources used Moreover, there is anincrease in the number of employees who quit their jobs Thus, HKT Consultantfaces the neccesity of developing the best process of recruitment and selection tomake human resources become the most valuable resource for the successfulfunctioning of an organization

Rationales

The research attempts to explore the recruitment and selection process ofHKT Consultant Jsc by providing a description of the current recruitment andselection process of HKT Then, a critical analysis of the existing recruitment andselection process is conducted to determine which recruitment and selectionpractices are most effective Finally, some future recommendations

recommendations will be made based on the information gathered to enable HKT

to attract highly qualified candidates and ensure person-job fit

2 How do recruitment and selection practices affect HKT’s outcomes?

3 Which practices should HKT apply for better recruiment and selection?

Scope of the research

The report deals with the recruitment and selection process in terms oftheoretical point of view and the practical use The study will allow learningabout the recruitment and selection issues, importance, modern techniques andmodels used to make it more efficient The study will help to learn the practicalprocedures followed by HKT Consultant Jsc Moreover the study will help HKTrealize how the organization can improve its recruitment and selection process

Methodology

There are three main research methods used in the report includingobservational method, quantitative method and descriptive method Observationare used to observe, record and identify how the process of recruitment andselection is performed in HKT Consulant Jsc in order to point out somedrawbacks emerging in the middle of its operation process Basing onquantitative method, statical analysis is conducted on revenue growth andnumber of job quit to draw a clear picture of recruitment and selection in HKT.Moreover, carried out as a descriptive research, this report aims at identifying theunderlying causes leading to mistakes in the whole process of HKT’s recruitmentand selection from which useful recommendations can be produced

Methods of data collection

HKT Consultant does have a separate Human Resource (HR) department,which conducts all the recruitment and se-lection activities Interviewing the

managers and executives of the HR department of HKT has provided the primarysources of information The interviews were conducted by using questionnairesthat consist of views and opinions of those particular people Furthermore,company brochures, documents, and the company website were the secondarysources of data.

CHAPTER I INTRODUCTION OF HKT CONSULTANT JSC AND HUMAN RESOURCE DEPARTMENT

Chapter 1 provides an overview of HKT Consultant’s business and after thatgoes more deeply in the operation of Human Resource Department in HKTConsultant Jsc Especially, this chapter will review the performance ofrecruitment and selection process in order to find out its current situation

1 Company overview

HKT Consultant Joint Stock Company or HKT for abbreviation foundedunder the decision No 01105149688 of Minister for Ministry of Trade as a jointstock company on February 11th 2009 with starting capital of VND 6.9 billion HKT has its own office at D1, Floor 9, Topcare Building, 335 Cau Giay,Hanoi and is on the way to spread its business to other regions and provinces inVietnam

Until now, HKT has 79 employees with 5 functional departments includingResearch and Development, Sales, Administration and Human Resources, IT,and Finance and Accounting

Now, HKT mainly does business in two fields including implementation of

IT and modern management models in business and resesearch Managementmodels provided by HKT Jsc include strategic global management models;resource management models; human resource management models evenue, sale,purchasing, stock management models; financial management models; andbusiness and marketing management models; etc while the service of researchprovide epistemology and research methodology, data collection and process bySPSS, Stata; management science (strategy, human resources, marketing, financeand accounting, theories of the firm, organizational learning, competence andknowledge transfer, acquisition & merger, joint-venture, etc.) and researchprojects, study, articles…

With the prestige and trust built in three years of development, HKTConsultant has now become the strategic partnership of VN SOLU Jsc and the

providers of management software for many companies in Hanoi and otherprovinces.

With the current operations, the organizational structure of HKT ConsultantJsc is quite simple with the top management of Board of Management and 5functional departments

Figure 1: Organizational structure of HKT Consultant Jsc.

During the period of development, HKT Consultant always believes in thestatement that “Your customers don't care about your product, service, orbusiness They care about themselves and their hopes, dreams and ambitions.Help them achieve their dreams and you'll win them over”

HKT Consultant Jsc always follows customers’ dreams about their product:

“More suitable, more helpful, higher quality and … simplest

Better, faster and … cheaper

More comfortable, easier, saving actions and … reflections

More convenient, logic, more elegant and … more splendid”

Board of Management

Research and

Development

Dept Sales Dept.

Administration and Human Resources Dept.

IT Dept

Finance and Accounting Dept

2 Human resources department and recruitment – selection process in HKT Consultant Jsc.

2.1 Roles and functions of human resources department in HKT Jsc.

Human resources (HR) department is always considered as one of the mostimportant departments in HKT Human resource department deals with a widerange of activities from strategic planning level to the day to day operations level.The main functions of HKT’s HR department include:

 Forecasting the labor requirement:

The business world changes dramatically; as a result, HKT also has tochanges to keep pace with other companies Especially, the demand of humanresources in HKT often changes depending on with revenue, market and otherfactors Therefore, the HR department in HKT holds the responsibility offorecasting the labour requirement of the organization in the future based on thefuture level of sales/production level of the organization The labour forecast mayidentify the need for hiring or firing employees, which matches with the currentsituation of HKT and its future business plan

 Recruitment

Once the labor forecast is done or requisitions for recruitment from anydepartment in HKT are received, HKT’s HR department can identify the needfor more labor in the organization if the existing workforce is not sufficient tohandle the future workload Then HR department has to recruit new potentialcandidates to fill the vacancies This process in HKT start with receivingrequisitions for recruitment from any department of the company Requisitionsinclude posts to be filled, number of persons, duties to be performed andqualifications required Based on these requisotions, HR department will preparethe job description and person specification, and then locate and develop thesources of required number and type of employees to attract candidates for thelatter process – selection

 Selection

Selection is the process following recruitment process by which the mostsuitable candidate is selected from the recruited pool of candidates Selection is

done by carrying out various types of tests and interviews HR department inHKT is responsible of selecting the most suitable employees to fill existingvacancies The HR department in HKT operates a quite thorough and efficientselection process to ensure that the very best candidates are chosen The process

is detailed in chapter 3

 Training

Once the employees are done with the induction they become an employee

of the organization but the skills they possess may not be adequate to carry outrequired tasks The need for training arises when the there is a gap betweenexpected level of skills and the current level of skills of an employee If a there is

a training need HR department has to design training programs and execute them

 Performance appraisal

Based on based on expected level and the actual level of the performance,employee performance will be evaluated by HKT’s HR department HRdepartment in HKT has set up design performance appraisal systems to appraisethe employee performance on a fairly manner

In addition the functions above, HR department in HKT is also in charge ofother duties such as rewarding employees, managing carrier growth ofemployees/promotions, managing redundancy, managing employee grievance,and managing complains about employees…

2.2 Recruitment and selection process in HKT Jsc.

It is obvious that organizations with highly effective recruitment andselection systems were significantly are likely to have experienced improvements

in business and employee outcomes than organizations with ineffective selectionsystems

Organizations with effective recruitment and selection systems can betteridentify and hire employees with the right skills and motivations to succeed inthe positions, as well as in the organization When employees are successful intheir jobs, the organization benefits through increased productivity and higherquality products and services In addition, when the “right” employees are hiredinitially, they are more likely to be satisfied and stay with the company Thus, by

using a good recruiment and selection system to hire qualified employees,organizations can reduce turnover, increase employee retention, and ultimatelyimprove critical business outcomes.

However, in HKT the recruitment and selection system seems not tofunction well The evidence is that there is an increase in the number ofemployees who quit their jobs at HKT

Chart 1: Number of job quit in HKT Jsc during 2009-2011

From the chart we can see that the number of people who left their jobs atHKT is greater during 2009-2011 If in the first year of operation, there were 6employees leaving their positions at HKT, in 2010 and 2011 that number is 8 and

9 There are some reasons contributing to this situation in HKT such as lowincome, limited career opportunities, unsatisfactory working conditions; and one

of the most important reasons firgured out through the research process is theprocess of recruitment and selection with mistakes This situation leads to thefact that people chosen are not fitted with the positions

Moreover, the business outcome is also affected by this situation Althoughmany resources including human resources and money are invested, the revenuehas not shown big changes

Revenue by year (USD)

Chart 2: Revenue by year of HKT Jsc during 2009-2011

If in 2009, the company gained revenue at more than 510,000 USD in 2010and 2011 it is only more than 512,000 USD and 513,000 USD Although therevenue still increased a little bit, compared with resources invested this revenuelevel is not satisfactory

For all the reasons above, this report is conducted to analyze the currentsituation in the recruitment and selection process in HKT Based on this analysis,recommendations will be offered to solve existing problems

In brief, chapter 1 gives a picture of HKT Consultant Jsc and its HRdepartment together with recruitment and selection process in HKT Someconsequences caused by recruitment and selection process are also figured out toidentify the problems Based on these problems, chapter 2 will give theoreticalframework for the process of recruitment and selection

CHAPTER II

THEORETICAL FRAMEWORK

Chapter 2 presents the theoretical framework for analyses of my report It isresponsible for answering the question about human resources managementissues which affectting the process of recruitment and selection It is also theguide to instruct the building of effective recruitment and selection strategies

1 Human resource management

1.1 Definition

1.1.1 Human resources

Human resources (HR) is a popular concept There are many meanings ofhuman resources People often use the meaning of HR within corporations andbusinesses which refers to the individuals within the firm, and to the portion ofthe firm’s organization that deals with the hiring, firing, training, and otherpersonnel issues

Gilley and Gilley also define HR as “the people employed by anorganization” (Gilley, Eggland, & Gilley, 2002, p 5)

However, these definitions are not really enough in the modern context ofbusiness In today business world, HR may be defined as the total knowledge,skills, creative abilities, talents and aptitudes of an organization's workforce, aswell as the values, attitudes, approaches and beliefs of the individuals involved inthe affairs of the organization

1.1.2 Human resources management (HRM)

In Managing Human Resources: Personnel Management in Transition,Stephen Bach (2005:3) states that HRM refers to: " all those activitiesassociated with the management of the employment relationship in the firm Theterm 'employee relations' will be used as an equivalent term as will the term'labour management'." While Gilley and Eggland define HRM as “therecruitment, selection, retention, development, and utilization of andaccommodation to human resources by organizations” (Gilley, et al., p 9)

The main objective HRM is the maintenance of better human relations inthe organization by the development, application and evaluation of policies,procedures and programmes relating to HR to take the best advantage theircontributions towards the fulfillment of organizational objectives In other words,HRM is concerned with getting better results for the organization with thecollaboration of people

1.2 Functions of human resources management

HRM can be understood as the development of a perfect mix betweentraditional administrative functions and the well-being of all employees within anorganization The HRM is responsible for: understanding and relating toemployees as individuals, thus identifying individual needs and career goals;dentify areas that suffer lack of knowledge and insufficient training, andaccordingly provide methods in the form of workshops and seminars; developingpositive interactions between workers, to ensure collated and constructiveenterprise productivity and development of a uniform organizational culture;recruiting the required workforce and making provisions for payroll and benefitsand implementing resource strategies to subsequently create and sustaincompetitive advantage for the enterprises In addition, HRM also acts the mainrole in dealing with employee dissatisfaction and evaluating employeeperformance

2 Recruitment and selection

Breaugh and Starke (2000) found that the amount of research on recruitmenttopics has increased significantly in the last four decades Hiltrop (1996) foundthat employee recruitment and selection have a statistically significant impact onemployee outcomes In his research, Huselid (1995) mentioned about differentresearchers who have signified the recruitment and selection practices as ‘highperformance work practices’ which could improve employee motivation andretention According to Singh and Finn (2003), an organization’s ability to attractand retain capable employees can be the most important determinant oforganizational effectiveness because recruitment plays a significant role inenhancing organizational survival and success in competitive and turbulentbusiness environments

2.1 Recruitment process

Recruitment is the process by which organizations locate and attractindividuals to fill job vacancies (Fisher, Schoenfeldt & Shaw, 2004; Kleiman,2005) According to Khan (2008), recruitment means informing the market thatnew people are going to be appointed, which can be done through publicity andadvertisement The primary purpose of recruiting is identifying and attractingpotential employees (Noe, Hollenbeck, Gerhart & Wright, 2006)

To sum up, recruitment is the process of identifying and attracting a group

of potential candidates from within and outside the organization to evaluate foremployment

In terms of recruitment process, the main concerns lie in recruitmentpreparation and sources of recruitment in the organization

2.1.1 Recruitment preparation

 Identifying staffing requirements

Recruitment preparation starts with indentifying needs and requirements ofhuman resources in all departments of organizations After requirements areidentified, requisitions for the vacancies need to be raised

 Job requirements and person specifications

Job requirements and person specifications are extremely important in theprocess of recruitment Good job requirements and person specifications allowsthe organisation to profile the ideal person to fill the job

All recruitment posts that are to be advertised must have an up-to-date jobdescription, which is an accurate reflection of the post the department is seeking

to fill Job descriptions are required in recruitment posts in order to clarify whatthe post-holder is required to do; to inform applicants about the post and toprovide information required for recruitment purposes; to provide information fordrawing up person specification criteria; to create a reference document forperformance assessment; etc

The job description should include the following: post title and department;background to the post; the purpose/objective of the post; the main duties andresponsibilities; key relationships; and special requirements

Person specification is so essential in the recruitment and selection processbecause it lays the foundation for the success or failure of the process as a whole.

A well-written specification will become the basis for the objective assessment ofapplicants both at the short-listing and selection stages; a badly written personspecification may make selection more difficult It helps to enable potentialapplicants to determine whether they are capable of meeting the requirements ofthe job It also helps recruiters to identify what qualities are required to do thejob In addtion, it provides employers with a tool to judge whether applicantsmeet the requirements and to compare one applicant with another Importantly, itcan reduce bias in the recruitment and selection process by ensuring candidatesare judged against criteria which are relevant to the job A person specificationshould include a list of criteria which focus on the qualifications, knowledge,skills/abilities/competences, experience and other post requirements

2.1.2 Sources of internal recruitment

Internal recruitment is a recruitment which is conducted within theorganization Internal sources of recruitment are always available to anorganization

There are many sources of internal recruitment used by organizations Themost common sources are:1 promotion; 2 transfer; 3 employee references; 4.job posting ; 5 newsletters and 6 memorendum

 Promotion

The most important source of filling vacancies from within is throughpromotions Promotion involves movement of employees from a lower levelposition to a higher level position accompanied by changes in authority, duties,responsibilities, status and remuneration (Khan, 2008) In promotion, theemployees are promoted from one department to another with more benefits andgreater responsibility based on efficiency and experience

 Transfer

As Khan (2008) mentioned, transfer is a lateral movement within the samegrade, from one job to another without any change in remuneration Generally,after 3 to 5 an employee is transferred from one department to another In

transfer, the employees are transferred from one department to another according

to their efficiency and experience

 Job posting

Job posting is a system of providing notices of job openings and employeesrespond to by applying (Mathis & Jackson, 2005) This is the convenient andsimple method of passing on important messages to the existing staff A jobadvertisement pinned to a notice board or through email or phone will probably

be seen, read and received by a sufficient number of appropriate employees atlittle or no cost

 Employee references

The existing employees will probably know their friends or relatives orcolleagues who could successfully fill the vacancy Approaching them may behighly efficient method of recruitment but will almost certainly offend otherworkers who would have wished to have been considered for the job To keepemployees satisfied make sure that potentially suitable employees are informed

of the vacancy so that they can apply Also any one else who is likely to beinterested is told about it as well so that they can apply for the job

In addtion to the main above internal sources of recruitment, there a stillsome other sources such as newsletters of memorandum While newsletters areconsidered as a in-house publication of an organization which can be utilized asthe source of recruitment, memorandum is a kind of document sent to departmentmanagers to read out to the teams or to write to all employees about thecompany’s recruitment

2.1.3 Sources of external recruitment

External sources of recruitment have to be solicited from outside theorganization External sources are external to a concern But it involves lot oftime and money When a company is involved in large expansions and is moreoriented towards achieving high growth and high market share, with more focus

on quality of the product and high customer satisfaction then it is inevitable forany organization to go for external recruiting External recruiting is nothing butrecruiting the people in your organization from outside the company

The external sources of recruitment include: press advertisement; jobcenters and consultants; campus recruitment; and competitors

 Press advertisement:

Advertisements of the vacancy in newspapers and journals are a widelyused source of recruitment The main advantage of this method is that it has awide reach Enterprise advertises vacancies through newspaper, trade journals &magazines The content of advertisement and media through which advertisement

is to be given is decided by Human Resource department It is a popular method

of seeking recruits, as many recruiters prefer advertisements because of theirwide reach Want ads describe the job benefits, identify the employer and tellthose interested how to apply Newspaper is the most common medium but forhighly specialized recruits, advertisements may be placed in professional orbusiness journals Advertisements must contain proper information like the jobcontent, working conditions, location of job, compensation including fringebenefits, job specifications, growth aspects, etc The advertisement has to sell theidea that the company and job are perfect for the candidate Recruitmentadvertisements can also serve as corporate advertisements to build company’image

The Internet

The internet is rapidly becoming the primary source of recruitment Technology

or the web based tools are now popularly used to assist the recruitment process.The tool can be either a job website like vieclam.vn, the organisation’s corporateweb site or its own intranet Many big and small organizations are using Internet

as a source of recruitment They advertise job vacancies through worldwide web.The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet or apply directly in the company’s website In addition,job seekers can place their CV’s in the worldwide web, which can be drawn byprospective employees depending upon their requirements

 Job centers and consultants

Jobs centers now are available in most large cities which offer employers aprofessional recruitment service and help employers to match their vacancies tojob seekers

Consultants are also used by employeers to find the right candidates Theyare useful as they have a wide network and professionalism to the hiring process

 Campus recruitment

School, colleges and professional institutions often offer recruitmentopportunities for their students Prospective employers come directly touniversities and conduct interview; moreover, placement cells have been set up inwell known educational institutions to help students in seeking suitable jobs.Now campus recruitment has gradually become a major source of recruitment forprestigious companies

 Competitors

This method involves identifying the right people in rival companies,offering them better terms and luring them away However, companies shouldtake care of some legal and ethical issues involved in raiding rival firms forpotential candidates

2.1.3 Internal vs external recruitment

The organization does not have a written policy on internal recruitment There is

no procedure in place to facilitate the filling of positions through internal sources One

of the implications of not advertising internally within the organization is that moralemay be damaged which may contribute to an increase in absenteeism and a decrease injob satisfaction (Robbins et al 1998) Another implication is that the most suitableapplicant for the job may already be employed with the organization, but because theposition is not advertised internally that employee will not have the opportunity to puttheir case forward Internal advertising can ‘… help identify people with talent whootherwise would not be known personally to management’ (Compton & Nankervis

1998, p 71) Internal advertising and job posting can help facilitate the promotion ofemployees who are aptly qualified Without the advertising of positions internally, it isdifficult to develop succession planning (Walker 1992)

Sources of

recruitment

Indicator

Internal sources External sources

Advantages - Enhancement of employee

satisfaction and individual motivation;

- Improvement of existing staff's skills and training

- Opportunities for development and promotion

- Retainment of valuable employees whose skills can befurther enhanced

- A good basis for recruitmentbased on daily performance evaluation

- Reduction of costs and time

- Smaller pressure for the compensation and benefits

- Large sources of recruitment

- New blood of resh employees with new ideas, different approaches to problems

-A good tool for the externalrumoring about new

products and services

- Improvement of new skills and competencies

- Economical way of recruitment in the long run

- Many available different ways of recruitment

- Avoidance of suspision of fovouritism

Disadvantages - Considerable small size of

prospective applicants

- Discouragement of external sources entering the

- Complicated procedures

- Employees dissatisfaction

Table 1: Advantages and disadvantages of internal and external sources of

recruitment