Improving Recruitment and Selection in Mekong Economics LTD - Master Thesis

TABLES OF CONTENTSACKNOWLEDGEMENT1TABLES OF CONTENTS3ABBREVIATION6LIST OF FIGURES7LIST OF TABLES9EXECUTIVE SUMMARY10CHAPTER 1: INTRODUCTION131.1 Rationale131.2 Research objectives141.3 Research questions141.4 Research scope141.5 Research methodology151.6 Thesis structure18CHAPTER 2: THEORETICAL BACKGROUND ON RECRUITMENT AND SELECTION192.1 Overview of recruitment and selection192.1.1 Definition recruitment and selection192.1.2. Role and benefits of recruitment and selection192.2 Recruitment and selection process212.2.1 Recruitment process222.2.2 Selection process332.2.3 Socialization process392.3 Interaction between recruitment and other HR functions402.4 Factors affecting to recruitment and selections412.4.1 Internal factors422.4.2 External factors432.5. Criteria to evaluate the effectiveness of recruitment and selection in an organization44CHAPTER 3: THE SITUATION OF RECRUITMENT AND SELECTION IN MEKONG ECONOMICS LTD.453.1 Overview and human resources of the company453.1.1 Company profile453.1.2 Structure of the company463.1.3 Business Performance473.1.4 Human resources in Mekong Economics483.2 Staff recruitment and selection process in Mekong Economics533.2.1 Staff recruitment process in Mekong Economics553.2.2 Staff selection process in Mekong Economics633.2.3 Staff socialization process in Mekong Economics693.2.4 Evaluation of effectiveness of the staff recruitment and selection in Mekong Economics.713.3 Consultant recruitment and selection process in Mekong Economics753.3.1 Description of consultant sample in Mekong Economics753.3.2 Consultant recruitment and Selection process in Mekong Economics783.3.3 Evaluation of the effectiveness of consultant recruitment and selection in Mekong Economics.903.4 The interaction between recruitment and other human resources functions933.5 Factors impacting to recruitment and selection in Mekong Economics943.5.1 Internal factors943.5.2 External factors953.6 Strengths and weaknesses of recruitment and selection process in Mekong Economics963.6.1 Strengths and weaknesses of staff recruitment and selection in Mekong Economics963.6.2 Strengths and weaknesses of consultant recruitment and selection in Mekong Economics98CHAPTER 4: RECOMMENDATIONS FOR IMPROVING RECRUITMENT AND SELECTION IN MEKONG ECONOMICS LTD.1014.1 Development strategy in Mekong Economics1014.2 Objectives for recruitment and selection IN Mekong Economics1024.3 Recommendations for improving recruitment and selection in Mekong Economics1024.3.1 Staff recruitment and selection1024.3.2 Consultant recruitment and selection108CONCLUSION111LIST OF REFERENCES112APPENDIX 1: QUESTIONNAIRE SURVEY114APPENDIX 02: THE LIST OF QUESTIONS FOR INDEPTH INTERVIEWS126

NATIONAL ECONOMICS UNIVERSITY

-

 -NGUYEN VIET HOANG

IMPROVING RECRUITMENT AND SELECTION

IN MEKONG ECONOMICS LTD.

MASTER OF BUSINESS ADMINISTRATION THESIS

SUPERVISOR: DR TRINH DINH TU

Hanoi –2018

Furthermore, my colleagues in Mekong Economics who provide me usefulinformation, respond my survey, and share their experiences to support me complete

my thesis

Last but not least, I wish to thank my family and friend who accompanied with me

at the moments when I needed their help the most Their encouragement andsympathy were the sources of energy empowering me to overcome all challenges aswell to balance between living, works and studying

Because of the limitation of knowledge, I cannot avoid misunderstanding as well asthe faults in expression I really hope to receive your own opinions to improve thisthesis

Yours Faithfully,

Nguyen Viet Hoang

TABLES OF CONTENTS

ACKNOWLEDGEMENT 1

TABLES OF CONTENTS 3

ABBREVIATION 6

LIST OF FIGURES 7

LIST OF TABLES 9

EXECUTIVE SUMMARY 10

CHAPTER 1: INTRODUCTION 13

1.1 Rationale 13

1.2 Research objectives 14

1.3 Research questions 14

1.4 Research scope 14

1.5 Research methodology 15

1.6 Thesis structure 18

CHAPTER 2: THEORETICAL BACKGROUND ON RECRUITMENT AND SELECTION 19

2.1 Overview of recruitment and selection 19

2.1.1 Definition recruitment and selection 19

2.1.2 Role and benefits of recruitment and selection 19

2.2 Recruitment and selection process 21

2.2.1 Recruitment process 22

2.2.2 Selection process 33

2.2.3 Socialization process 39

2.3 Interaction between recruitment and other HR functions 40

2.4 Factors affecting to recruitment and selections 41

2.4.1 Internal factors 42

2.4.2 External factors 43

2.5 Criteria to evaluate the effectiveness of recruitment and selection in an organization 44

CHAPTER 3: THE SITUATION OF RECRUITMENT AND SELECTION IN

MEKONG ECONOMICS LTD 45

3.1 Overview and human resources of the company 45

3.1.1 Company profile 45

3.1.2 Structure of the company 46

3.1.3 Business Performance 47

3.1.4 Human resources in Mekong Economics 48

3.2 Staff recruitment and selection process in Mekong Economics 53

3.2.1 Staff recruitment process in Mekong Economics 55

3.2.2 Staff selection process in Mekong Economics 63

3.2.3 Staff socialization process in Mekong Economics 69

3.2.4 Evaluation of effectiveness of the staff recruitment and selection in Mekong Economics 71

3.3 Consultant recruitment and selection process in Mekong Economics 75

3.3.1 Description of consultant sample in Mekong Economics 75

3.3.2 Consultant recruitment and Selection process in Mekong Economics 78

3.3.3 Evaluation of the effectiveness of consultant recruitment and selection in Mekong Economics 90

3.4 The interaction between recruitment and other human resources functions 93

3.5 Factors impacting to recruitment and selection in Mekong Economics .94 3.5.1 Internal factors 94

3.5.2 External factors 95

3.6 Strengths and weaknesses of recruitment and selection process in Mekong Economics 96

3.6.1 Strengths and weaknesses of staff recruitment and selection in Mekong Economics 96

3.6.2 Strengths and weaknesses of consultant recruitment and selection in Mekong Economics 98

CHAPTER 4: RECOMMENDATIONS FOR IMPROVING RECRUITMENT

AND SELECTION IN MEKONG ECONOMICS LTD 101

4.1 Development strategy in Mekong Economics 101

4.2 Objectives for recruitment and selection IN Mekong Economics 102

4.3 Recommendations for improving recruitment and selection in Mekong Economics 102

4.3.1 Staff recruitment and selection 102

4.3.2 Consultant recruitment and selection 108

CONCLUSION 111

LIST OF REFERENCES 112

APPENDIX 1: QUESTIONNAIRE SURVEY 114 APPENDIX 02: THE LIST OF QUESTIONS FOR IN-DEPTH INTERVIEWS 126

PID Project Implementation Division

LIST OF FIGURES

Figure 1 1: Author's Research Process 15

Figure 2 1: Recruitment and selection process 21

Figure 2 2: Recruitment Process 22

Figure 2 3: Job Analysis Matrix 24

Figure 2 4: Job description 25

Figure 2 5: Relationship between job description and job specification 25

Figure 2 6: Selection process 33

Figure 2 7: Internal and External factors 41

Figure 3 1: Organization Structure in Mekong Economics 47

Figure 3 2: Number of staffs from establishment in 2001 to 2016 48

Figure 3 3: Education percentage components of MKE staffs 49

Figure 3 4: MKE’s staffs break down by age groups 52

Figure 3 5: MKE’s staff percentage components break out by the number of working experience year 53

Figure 3 6: The recruitment and selection process in MKE 54

Figure 3 7: The process of finding job vacancy 56

Figure 3 8: The percentage of factors is included in job advertisement 57

Figure 3 9: The percentage to show how much those factors stated in job description work out when it comes to practical conditions 58

Figure 3 10: Recruitment source in MKE 59

Figure 3 11: Interrelation between job positions and recruitment sources 60

Figure 3 12: Recruitment methods of MKE 61

Figure 3 13: Recruitment methods breakdown by division 62

Figure 3 14: Showing how much the test is relevant to job 64

Figure 3 15: Types of interview in Mekong Economics 66

Figure 3 16: Showing whether the company requested health check and references 67

Figure 3 17: Reasons for staffs to accept the company’s offer 68

Figure 3 18: Provision of necessary information and HR support 70

Figure 3 19: Supporting from manager/supervisor 71

Figure 3 20: Comments of staffs about the process’s duration 73

Figure 3 21: Staffs’ general evaluation in recruitment and selection in MKE 74

Figure 3 22: Staffs’ comment on whether the process should be improved 75

Figure 3 23: Percentage components of national consultants breakdown by gender 76

Figure 3 24: Percentage components of national consultants breakdown by age 76

Figure 3 25: Percentage components of national consultants breakdown by the number of working experience year 77

Figure 3 26: Percentage components of national consultants breakdown by professional qualifications 78

Figure 3 27: Consultant recruitment and selection process in MKE 79

Figure 3 28: Information is contained in the job description 80

Figure 3 29: Showing how accurate staffs find in job specifications 80

Figure 3 30: Reasons preventing consultants from satisfying requirements 81

Figure 3 31: Showing how accurate the term of references reflect actual experiences in project implementation 82

Figure 3 32: Methods of external recruitment 84

Figure 3 33: documents the expert uses to show ability 85

Figure 3 34: Showing whether the consultant requested to provide updated CVs or relevant documents 86

Figure 3 35: Reasons of difficulties when negotiating the pre-contract agreement.87 Figure 3 36: Showing whether the consultant join an interview after CV had been shortlisted 88

Figure 3 37: Showing who join the interview 88

Figure 3 38: Showing whether the consultant is requested for providing references 89

Figure 3 39: Duration for getting the evaluation result after submitting CV 90

Figure 3 40: Duration for getting the bidding result after submitting tender documents 91

Figure 3 41: Consultant's comment on recruitment and selection process in MKE 92 Figure 3 42: Consultant's comment on whether the process needs improving 93

LIST OF TABLES

Table 1 1: List of Interviewees at MKE 16

Table 1 2: Number of respondents 17

Table 2 1: Advantages and disadvantages of internal sources 26

Table 2 2: Advantages and disadvantages of external sources 27

Table 2 3: Advantages and disadvantages of each recruitment method 31

Table 3 1: The Company's Revenue from 2013 to 2015 47

Table 3 2: Turnover rate of MKE staff from 2012 to 2016 48

Table 3 3: Educational structure of MKE’s staffs 49

Table 3 4: MKE’s staffs breakdown by position 50

Table 3 5: MKE’s staff breakdown by gender 51

Table 3 6: Percentage components of each division according to working experience year 52

Table 3 7: Estimated cost for selection and recruitment in 2015 72

Table 3 8: Estimated time for each step 73

EXECUTIVE SUMMARY

Recruitment and selection activities are considered as one of the most importantfactor in human resources management Therefore, improving process is the keyaction for HR and the whole BOM of the company to do Over the years, thoughMekong Economics has significantly expanded market share, its human report atthe beginning of 2016 showed that its labor force changed a lots The staff turnoverrate has significantly fluctuated over recently five years Recruitment and selectionhas many problems causing instability in the number of staffs In addition, somestaffs who are working at MKE comment that there are a lot of issues related torecruitment and selection in MKE Furthermore, in addition to recruitment andselection for staffs, the company has recruited and selected consultant for biddingactivities and implementing ODA projects This process has recently had someproblems related to the availability of experts as well as mobilizing this sources forproject implementation to ensure clients’ requirements This leads to consequenceswhich impact on other function activities Catching up the importance of above

problem, the author chose the topic “Improving recruitment and selection in

Mekong Economics Ltd.” to do the research with the objectives (1) To review and

select an appropriate theoretical framework on recruitment and selection processrelating to this research; (2) To analyze and evaluate recruitment and selectionsituation at Mekong Economics Ltd to find out strengths and weaknesses as well asfactors affecting on recruitment and selection; (3) To recommend solutions forimproving recruitment and selection process at Mekong Economics Ltd

The author conducted the survey to 35 staffs who are working in MKE’s HanoiOffice to analyze the situation of staff recruitment and selection and 50 nationalconsultants who are Vietnamese to analyze consultant recruitment and selectionsituation To research methodology, the author used in-depth interview incombination with conducting surveys to respondents After collecting information,the author use Excel software to analyze The Excel helped the author to calculateand build up graphs and charts for analyzing Based on these findings, the author

has found out some weaknesses and challenges in recruitment and selection process

of both consultants and staffs With staffs recruitment and selection, there are someissues which are presented in below:

- Job analysis was not carefully conducted for each positions by interviewingrelevant people, just taken from previous recruitment without customizing forcurrent situation

- There is no application form so screening activities can be more difficult andwaste of time

- Testing content did not match with job requirements in actual as well as notchange by the time Interview content is not enough difficult and relevant torequirements in actual Probation time seems to be procedure without anyeffectiveness so the quality of new comers is not really satisfied withrequirements

Related to consultant recruitment and selection, due to different features, thecompany has some outstanding problems mentioned as follows:

- Job specifications does not really reflecting working skills which consultantshould have to conduct successfully assignments The company only focuses onwhat clients want but not pay attention to what consultants need This leads tothat the company cannot attract to the most qualified experts

- Internal database is the most important sources for finding out experts butupdating and arranging this sources have some significant problems There is nocoordination between BDD and PID in recruitment and selection activities

- There is no any socialization activities which can help the company in enhancingthe quality of consultant as well as checking consultant’s working ability inactual to draw lesson learnt in working with that consultant

To deal with these problems, the author also pointed out some suggestions andsolutions with aiming to improve the process

For staffs:

- Publishing HR plan to all managers and staffs to ensure that they can thoroughlyunderstand and coordinate in implementing; Building standard application formsfor all positions with participation of contributing comments from all managersand even recruiting expert for consultancy

- Creating job opportunity for end-year students as volunteers and internships towork at MKE so they can be back – up source in the future; Building database tosave all application forms from candidates who did not successfully apply fornext recruitment Building test content based on previous recruitment term alongwith customizing for matching with current requirements and the company’ssituation

For consultants:

- Working closely with consultants and clients to get necessary information fordeveloping job description and job specifications Building an automaticinformation system containing consultants’ profile This system will be updatedregularly all information of consultants Relevant staffs and managers/economists who have strong experience in implementing projects should havemeeting to unify criteria for searching experts

- Offering to sign contract with consultant according to each phase, not wholeproject duration with some core and long-term projects; Building evaluation form

to use during the project time and requesting clients for completing afterfinishing project

With all above recommendations, the author do hope to contribute in improvingrecruitment and selection of MKE

CHAPTER 1: INTRODUCTION

1.1 Rationale

In the market economy nowadays, each company which wants to survive anddevelop always needs to follow a right path for itself Recruitment and selectionalways play important role in human resources management To adapt with thechanging of world’s business, companies have to recruit candidates who areadaptable, loyal, knowledgeable, dependable and confident, thank to this bring thesuccess for companies When the companies select the suitable staffs for the job,train and guide them well and treat them appropriately, these people not onlyproduce good results but also tend to work with the organization in longer-term Insuch circumstances, the organization’s initial and ongoing investment in them iswell rewarded An enterprise may have both of the latest technology and the bestphysical resources, but if it does not have the qualified team it will be difficult togain requirements

Mekong Economics Ltd is ranked as one of the most leading economic and economic development and commercial consulting firm which has experienceworking in the Greater Mekong sub-region and Asia-Pacific region MKE has acomprehensive regional presence with Offices located in Hanoi (Vietnam) andYangon (Myanmar); and representative associates in Cambodia, Lao PDR, andTimor-Leste MKE focuses in providing consulting services for internationaldevelopment agencies, non-government organizations and corporate clients Thecompany has established for 15 years and now is facing ferocious competition fromother competitors of the industry One of the top problems which is related to loweffectiveness of recruitment and selection impacts significantly on the quality ofhuman resources Staff turnover rate is always at high level during recent five years.The other might be challenges which the company has to handle is recruiting andselecting the most qualified and appropriate specialists for specific projects.Working as a Business Development officer, the author decided to conduct this

socio-research namely “Improving recruitment and selection in Mekong Economics Ltd.” for the purpose of recommending suitable solutions for the company.

1.2 Research objectives

The Research objectives of the thesis are:

 To review and select an appropriate theoretical framework on recruitmentand selection process relating to this research

 To analyze and evaluate recruitment and selection situation in MekongEconomics Ltd to find out strengths and weaknesses as well as factorsaffecting on recruitment and selection

 To recommend solutions for improving recruitment and selection process inMekong Economics Ltd

1.3 Research questions

Research questions to find out the answer for above objectives:

 What is theoretical framework on recruitment and selection process suitablefor this research?

 What is the actual situation of recruitment and selection in MekongEconomics Ltd.?

- What are strengths and weakness, opportunities and challenges ofrecruitment and selection process in Mekong Economics Ltd.?

- What are main factors affecting on recruitment and selection in MekongEconomics Ltd.?

 How to improve recruitment and selection in Mekong Economics?

1.4 Research scope

Content: The research focused on recruitment and selection process for staffs and

consultants in Mekong Economics The research was implemented for both currentnational and international staffs and national consultants who joined or are joiningprojects with MKE

Location: in Vietnam

Timing:

- Primary data was collected from April 2016 to June 2016

- Secondary data was collected from 2014 to 2015

Recommendations are proposed for next three years from 2016 to 2018

1.5 Research methodology

1.5.1 Research process

The research process was implemented through the below Chart:

Figure 1 1: Author's Research Process

Source: Author’s data

1.5.2 Data collection

The study applied both secondary data collection method and primary datacollection method

a) Secondary data collection

Secondary data is a vital source to supply basic data for the research They werecollected from internal and external sources Internal sources consisted of the

company’s reports, strategy, policies, regulations, etc External sources come frombooks, articles, researches, newspaper, projects and information on internet.

b) Primary data collection

Primary data were collected through in-depth interviews and survey

In-depth interviews:

In-depth interviews were implemented to ask MKE managers The following tablepresented the managers that were asked for joining the author research

Table 1 1: List of Interviewees at MKE

No Manager to be interviewed

Position

Information will be collected

1 Tran Thi Ngoc Diep General Manager  Actual situation of

recruitment andselection in MKE

 Potential reasonsthat can caused bythe situation inMKE

 Recommendationsfor improving

2 Nguyen Thi Thu Hien Deputy Manager of

ProjectImplementationDivision

3 Nguyen Thi Thanh

Van

Business DevelopmentManager

Method: With Managers, HR &Admin Officer: Directly interviewing

Survey was carried out to collect information on current situation of recruitment andselection in MKE The author carried out the survey with current staffs and nationalexperts in MKE in April, May and June 2016 The author conducted a survey with

35 staffs who are current working in MKE Vietnam and 50 national consultants

who joined or are joining projects with MKE as below:

Table 1 2 : Number of respondents

Source: Author’s summary

Questionnaire Design: Questionnaire structure consists of three main sections:

 Section 1: the first section includes Introduction of the survey, thank therespondents for supporting and explain the target of the survey

 Section 2: the second part includes questions about personal information

 Section 3: the third part includes questions about situations of recruitment andselection activities, and comments & recommendations

Questionnaire Distribution: Questionnaires were sent directly to 35 staffs in MKEand sent by email to 50 national consultants in Vietnam

1.5.3 Data analysis

With questionnaires, the data was compiled and processed by Excel software.Information from questionnaires survey was compared with secondary data to checkreliability It was also extended by in-depth interviews to explain and confirmvalidity of collected results

1.6 Thesis structure

Chapter 1: Introduction

Chapter 2: Theoretical background on recruitment and selection

Chapter 3: Analyzing and evaluating the situation of recruitment and selection in Mekong Economics Ltd.

Chapter 4: Recommendations for improving recruitment and selection in Mekong Economics Ltd.

CHAPTER 2: THEORETICAL BACKGROUND ON

RECRUITMENT AND SELECTION

2.1 Overview of recruitment and selection

2.1.1 Definition recruitment and selection

Recruitment and selection is one of the most important sections in human resourcesmanagement so it is defined in many ways according to many authors

Definition comes from the authors: Noe, Hollen, Gerhart, Wright (2008), human

resources recruitment is defined as any practice or activity carried on by the organization with the primary purpose of identifying and attracting potential staffs.

Another author – John M Ivancevich (2000) also defined “recruitment refers to

organizational activities that influence the number and type of applicant who apply for a job; and whether the applicants accept jobs that are offered Thus, recruitment

is directly related to both processes of human resource planning and selection”.

Meanwhile, personnel selection is the process by which companies decide who will

or will not be allowed into organizations (Noe, Hollen, Gerhart, Wright, 2008) On

the hrwale website, selection is defined as a process of picking up individuals (out

of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization

In this research, the author chooses definitions of Luis R Gomez – Meijia, DavidB.Balkin and Robert L Cardy (2007):

“Recruitment is the process of generating a pool of qualified candidates for particular job; the first step in the hiring process Selection is the process of making a “hire” or “no hire” decision regarding each applicant for a job; the second step in the hiring process ”

2.1.2 Role and benefits of recruitment and selection

It is undeniable with important role of recruitment and selection in ensuringworking effectiveness and positive organizational outcomes It is often claimed thatselection of workers occurs not just to replace departing staffs or add to a workforcebut rather aims to put in place workers who can perform at a high level anddemonstrate commitment (Ballantyne, 2009) Hiring right person in an effectivemethod can help organization to not only avoid undesirable costs – for examplethose associated with high staff turnover, poor performance and dissatisfiedcustomers – but also engender a mutually beneficial employment relationshipcharacterized, wherever possible, by high commitment on both sides

The process will become more vital if as the company increasingly consider theirhuman resources as a source of competitive advantage For example, it has beennoted that ‘over several decades, work psychology has had a significant influence

on the way people are recruited into jobs, through rigorous development andevaluation of personnel selection procedures’ (Arnold et al, 2005, p 135) The lateststatistics indicate that replacement for an existing member of staff, it will costorganization two and a half times comparing with paying staff’s salary Therefore, it

is necessary that the HR is involved in the entire recruitment and selection process.According to Pilbeam and Corbridge (2006, p 142): ‘The recruitment and selection

of staffs is fundamental to the functioning of an organization, and there arecompelling reasons for getting it right Inappropriate selection decisions reduceorganizational effectiveness, invalidate reward and development strategies, arefrequently unfair on the individual recruit and can be distressing for managers whohave to deal with unsuitable staffs’ Therefore, these activities require the company

to invest through human capital as an important resource The purpose of thisprocess is finding out qualified applicants to fulfill the right positions and desiresthat they can make long-run returns for the company

One of the many adverse consequences of poor recruitment is the possibility of ahigh level of staff turnover Not only does this lead to increased direct costs, it also

has a disruptive effect on the use of managerial time Estimates of the cost toreplace supervisory, technical and management staffs run from 5 percent to severalhundred percent of their salaries (Myrna L Gusdorf, 2008) In addition, a veryimportant intangible cost which business will be able to lose is the effect of highstaff turnover on the morale, motivation and job satisfaction of staff and on the level

of organizational performance and customer satisfaction (Mullins, 1996)

2.2 Recruitment and selection process

Recruitment and selection is often presented as a planned rational activity,comprising certain sequentially-linked phases within a process of staff resourcing,which itself may be located within a wider HR management strategy In 2007, Luis

R Gomez-Meijia, David B.Balkin and Robert L Cardy published a recruitment andselection process as the hiring process This process includes three phases as thebelow:

Figure 2 1: Recruitment and selection process

Source: Luis R Gomez-Meijia, David B.Balkin and Robert L Cardy, 2007

The hiring process is fraught with challenges The most important of these are:

- Determining which personal characteristics are most important toperformance

- Measuring those characteristics

- Evaluating applicants’ motivation levels

- Deciding who should make the selection decision

It has three basic components: recruitment, selection and socialization Eachcomponent consists of some different small steps and will be explained more detail

in the below contents

 Recruitment: Recruitment is the process of identifying a list of qualifiedapplicants for a specific positions; the first step in the hiring process The

company have to announce the job’s vacancy to the labor market (inside andoutside the organization) and attract qualified candidates to apply.

 Selection: Selection is the process of determining whether the employerselects applicant for a job; the second step in the hiring process The processtypically involves specifying the requirements for effective job performanceand then checking candidates on those evaluation criteria which are normallybased on a job analysis Based on candidates’ result on various tests and/ orthe performance they have presented in interviews, managers make adecision who will be offered a job This selection process often relies on cutscores; candidates who have results below this level are considered to fail.The staffing process is not, and should not be, complete once applicants are hires orpromoted To retain and maximize the human resource that were so carefullyselected, organization must pay careful attention to socializing them

 Socialization: Socialization orients new staffs to the organization and to theunits in which they will be working Socialization can make the differencebetween a new worker’s felling an outsider and felling a member of the team

2.2.1 Recruitment process

The purpose of the recruitment process is to find the widest pool of applicants (frominside or outside of a company) to provide the greatest opportunity to select the bestpeople for the required roles in an organization It consists of identifying therequirements of a job as well as attracting candidates to that job

Figure 2 2: Recruitment Process

Source: Luis R Gomez-Meijia, David B Balkin and Robert L Cardy, 2007

2.2.1.1 Defining requirements:

Identifying requirements is the first step in recruitment process It is an importantobjective in developing job analysis and job descriptions Information which theyalso provide is used to draft advertisements, post vacancies on the internet, briefagencies or recruitment consultants and evaluate candidates by means of interviewsand selection tests

a Job analysis

Job analysis is the systematic process of collecting information used to makedecision about the jobs Job analysis identifies the tasks, duties, and responsibilities

of a particular job (Luis R Gomez at all, 2012)

The information from job analysis can be used for recruitment and selectionprocess:

 Recruitment: Job analysis provides information for job description, job

specification; generates a higher – quality pool of applicants as well asscreen application forms through describe tasks, duties and responsibilities ofjobs

 Selection: The company uses job analysis to decide whether an applicant for

a particular job should be required to make personality test measuringextroversion has a weak relationship to the job contents of other jobs andshould not be used as part of selection process for those jobs

Additionally, the information gathered during job analysis provides a foundation forsuch necessary human resource management activities as training them to performjob-specific tasks, developing performance evaluation standards, determiningappropriate compensation, and promoting personnel within career families

Some methods that organizations usually use for job analysis process, including: (1)interviewing staffs, (2) observing performance of certain tasks, (3) asking staffs to

fill out questionnaires and worksheet, and (4) collecting information about a jobfrom secondary sources.

Job analysis process can consist of the steps as follows:

 Determine the major tasks, activities, behaviors, or duties and responsibilities(essential functions)

 Determine relative importance of the tasks

 Determine the relative frequency with which the tasks are assessed

 Identify the critical knowledge, abilities, skills, and other characteristics(KASOCs) necessary to perform the tasks

In order to be easier for job analysis activity, some organization usually use jobanalysis matrix as a useful toll in completing this process

Figure 2 3: Job Analysis Matrix Source: http://myeasymba.blogspot.com/2011/06/hr-notes-job-analysis.html

b Job description

Job description is defined as a summary statement of the information collected in

the job – analysis process It is written document that identifies, defines, anddescribes a job in terms of its duties, responsibilities, working conditions, andspecifications (Luis R Gomez at all, 2012) Two types of job descriptions consist ofspecific job descriptions and general job descriptions There are five key elements

as listed: identification information (job title, location, etc.), job summary (a short

statement on duties, responsibilities and place of position in organization, etc.), jobduties and responsibilities (the detail information on duties, responsibilities, andwork condition, etc.), and job specifications and minimum qualifications (the list ofrequirements on education, experience and skills of applicants); and others(expected salary level; instruction on how to apply the position; deadline andcontact address).

Figure 2 4: Job description

Source: Chuck Schwartau, 2007

c Job specifications

Job specifications are a list of staff characteristics and qualifications required tosatisfy performance of defined duties and tasks comprising a particular job orfunction Job specification is referred from job analysis and is added in jobdescription as a small part

The relationship between job analysis, job description and job specifications asillustrated in the below image:

Figure 2 5: Relationship between job description and job specification

Source: http://myeasymba.blogspot.com/2011/06/hr-notes-job-analysis.html

2.2.1.2 Attracting and managing candidates

Attracting and managing candidates is the second step in recruitment process Thisstep has two key elements: identify sources of recruiting and identify methods ofrecruiting

a Recruitment sources

Sources of recruiting are channels where recruiters seek for candidates Two most

popular sources are internal and external sources which are used for recruitmentpurposes in a company

 Internal sources:

Internal source involves hiring applicant in-side an organization to fill the job Notsimilar to external sources, companies recruit the vacancy through references ofinternal staffs or current staffs’ promotions to higher positions

Although these sources have some advantages, they also have disadvantages Wecan see the details as follows:

Table 2 1: Advantages and disadvantages of internal sources

- It is not necessary for training

- Maintaining close relationshipwith staffs

- Make motivations for staffs towork hard to get higherpositions

- It is so quick and easy to pickbest in-house staffs

- Working in longer time withcompany when promoted tohigh position

- The position of staff who ispromoted will be vacant

- There may be partially inpromoting staffs

- There is no chance for externalcandidates

- Some staffs who are notpromoted will leave fordissatisfaction

Source: The author

 External sources:

External source are recruited from applicants through references, networks, jobportals or the company can contact recruitment agencies In order to complete withother companies and increase their standards, employers hunt for best talentsworking for other top companies

Also as internal sources, external sources have advantages and disadvantages inbelow:

Table 2 2: Advantages and disadvantages of external sources

- Able to recruitment theskills if needs

- Recruiting cost is high

- External process is moretime consuming ascompared to internalprocess

- Sourcing qualitycandidates becomesdifficult for the companies

- Internal recruiters lackheadhunting skills (lessreferences or networks).They may have toapproach recruitmentagencies to hire thepeople

Source: The author

b Main methods of recruiting

There are many different methods of recruiting and there is no best method forrecruiting job applicants Most organizations usually choose some different methods

or combine them in order to attract the best potential candidates The methods of

recruitment are often categorized on to internal recruitment and externalrecruitment.

Internal recruitment: internal recruitment is when business looks to fill the

vacancy within its existing workforce It can consist of five main methods whichare used to recruit current staffs in organization:

 Transfers: the staffs are moved from this division to the other based on theirperformance

 Promotions: The staffs are offered from one division to another with morebenefits and certainly higher responsibility based on performance

 Upgrading and Dismissing of present staffs according to their performance

 Retired and leaving staffs may also be hired once again in case of shortage ofexperienced human resources or increase in work-load Hiring suchemployees helps the company save time and costs as the people haveawareness of the organizational culture and the policies and procedures aswell as their ability was checked during they work at the company

 The dependents and relatives of Deceased staffs and Disabled staffs are alsodone by many companies so that the members of the family do not becomedependent on the mercy of others

External recruitment: External recruitment is when the business looks to fill the

vacancy from outside of organization

Organizations usually use many different methods for accessing these sources:Advertising, Employment Agencies, Government job services, Executive SearchFirms, E-recruitment, Outsourcing recruitment, Target research, Internships,Professional Associations, and Open Houses, Event Recruiting, Sign-on Bonuses,Company Database and target Internet sites

 Advertising

Advertising is a method that approach organization’s recruitment demandthrough media such as radio, television, industry publications, and theInternet in order to attract the potential candidates for organization Anadvertisement should have contents: (1) job title, (2) brief information on

organization, (3) general description on recruiting position, (4) jobrequirements and required qualifications, (5) rewards and prospects, etc.Moreover, an advertisement should also dedicate how to reply and closingdate.

 Employment agencies

Employment agencies can be used to recruit contingent employees It is greatmethod for non-exempt level jobs Normally, employment agencies have on-site representation at companies

 Government job services

Government job services are useful tools to attract a major workforce It is bededicated to placing qualified staffs which can meet specific requirements

 E-recruitment/ Online recruitment

Internet is used for these in advertising or uploading vacancies, providingrequirements about jobs and the organization; and enabling e-mailcommunication between the company and candidates The applicants canapply for jobs online and can email application forms and their CVs toemployers or agencies Even, tests can be conducted online

E-recruitment method can be used through corporate website, commercialjob boards and agencies sites:

- Corporate websites: Information of recruiting positions can be post oncorporate website at a specific area This area should be displayed to beable attract people’s sight It may be linked directly to organization’s homepage or other folders or other websites, so that interested people canaccess this information source

- Commercial job boards: Commercial job boards: Some firms such asvietnamworks.com and careerlink.com have a large databank of vacancies.Organizations have to pay to be posted their jobs on the sites Some job

advertisements are only found on the Internet Links may leadorganization’s website.

- Agency sites: These are controlled by established recruitment agencies.Candidates register online but maybe expected to discuss their details inperson before they are forwarded to a prospective employer

 Recruitment process outsourcing

“Recruitment process outsourcing” (RPO) is the term used when anorganization delegates a provider to be responsible for the end-to-enddelivery of the recruitment process covering all vacancies or a selection ofthem Organizations contact with recruitment managers for identifyingrequirements and specifications; deciding on the best methods to attractcandidates; processing applications; and setting up and facilitatinginterviews The strengths of RPO are that it saves time, bring outsideexpertise to bear on recruitment issues and free up HR for more value –added activities The weakness is the perception by some HR people and linemanagers that the provider is too remote to deal with the actual problems andthat there is a risk if impossible control

Additionally, there are some methods can be used to attract potentialcandidates, including:

 Job fair/ virtual job fair

Job fair: group of employers gather collectively to recruitment applicantsVirtual job fair: companies come together to recruit applicants online

 Internships

Internships are places that provide students temporary jobs Organizationwill be no obligation to hire student permanently or for student to accept apermanently position Typically, organizations have positions as temporary

job for summer or a part-time job during school year Students will havechances to apply the theory to practice.

 Professional organizations

Using professional organizations are the methods that specializedorganizations for certain professions It serves as an educational resource forthat profession,

In order to be easy to more understandable, a brief of advantages and disadvantages

of each recruiting method is displayed as the below table:

Table 2 3: Advantages and disadvantages of each recruitment method

Job posting - Can be fast and efficient

- No cost for advertising - Have limitation for scope offinding out the job.

- May not approach the mostsuitable candidates

Recommendations

from current staffs

- Save the time and may beefficient

- Can be effective becausethe staff has a vestedinterest

- Have limitation for scope offinding out the job

- May not approach the mostsuitable candidates

- May not work in a tight jobmarket

Advertising - Allows the employer to

reach a wider candidatespool

- It is potential to attract

- Spend more time

- Have to conduct carefullyscreening activities

more highly qualifiedapplicants

Government job

services

- Staffed by qualifiedprofessionals

- Provides job notice writingservice

- Provides screeningassistance

- May not have the bestapplicant pools

- Not highly regarded by somemanagers

- Too remote to deal with realissues

- May be a danger of losingcontrol

Source: The author

2.2.2 Selection process

Figure 2 6: Selection process Source: Luis R Gomez-Meijia, David B.Balkin and Robert L Cardy, 2007

Once the company has decided a pool of candidates through the recruitmentprocess, the most appropriate candidate, or candidates are determined through aselection process including but not limited to interviewing, referencing andtesting The selection process aims to ensure that the best person or people areappointed to the role or roles using effective, fair and equitable assessmentactivities Selection is separated into four small steps in the follow chart:

2.2.2.1 Screening and short-listing

a Screening

Screening applicants can be regarded as an integral part of recruiting process,though many people view it as the first step in selection process The selectionprocess begins after vacancies have been advertised and a various number ofapplicants respond to announcements The techniques are used to screen applicantsdepending on sources and methods of recruiting They can consist of sometechniques in below:

 List the applications on a control sheet setting out name, date applicationreceived and actions taken (reject, hold, interview, short-list, offer);

 Send a standard acknowledge letter to each applicant unless an instantdecision can be made to interview or reject;

 The applicant may be asked to complete and return an application form bypost or by email to supplement a letter or CVs

At some organizations, screening may be implemented through calling bytelephone The HR staff may ask some uncomplicated questions to further identifythe candidate’s job qualifications and whether the candidate is appropriate for theopen position In case the candidate is not suitable for the position in question, theinterviewer can suggest them to another open job within the company if there isavailable vacancy that matches the applicant’s qualifications On the other hand, the

candidate is obviously unqualified for the position, the recruitment ends there,thanks to this, both the candidate and the organization save the time and expense ofgoing further into the selection process.

b Short-listing

Short-listing involves in selection process to reduce the number of receivedapplications down into a suitable short-list for interviewing There are sometechniques can be used in short-listing process as follows:

 Collate the applications with the key evaluation criteria in the personspecification and classify them initially into three groups: possible, marginaland unsuitable;

 Review the possible candidates again to have a short-list for interview Thisscrutiny could be conducted by the HR or recruitment officer, and therelevant manager;

 Draw up an interviewing program;

 Invite the candidates to interview, using a standard letter where largenumbers are involved;

 Review the remaining possible and marginal and decide if any are to be held

in reserve Send reserves a standard “holding” letter and send the others astandards rejection letter

b Application forms

Organizations often use application forms as screening device to determine whether

a candidate satisfies minimum job specifications, particularly for entry-level jobs.The forms typically ask for information regarding past jobs and presentemployment status

c Tests

Tests are important tools in selection process that are usually used to evaluateability, aptitude and personality of candidates before applying other selection tools.Types of tests:

- Vocational interest tests

- Honesty and integrity tests

In addition, companies usually evaluate indicators, such as: Reliability and Validity and Selection Test and Standardization in applying tests and interviews.

d Selection interview

It might be a somewhat formal discussion between a recruiter and an applicant,typically in person, in which information is discussed, with the intention ofdetermining the applicant’s matching for a job.

 Purpose of the interviews: The interview aims to provide a two-way

exchange of information; to advertise your organization; to offer yourposition; to have a meeting and personally assess the applicant and toresponse the applicants’ questions and deal with any concerns

 Advantages of interviews:

- Give chances for employers to ask probing questions about the candidates’working experience and to explore the extent to which the applicant’scompetencies are suitable for those specification for the position;

- Provided chances applicants to clarify concerns about the positionrequirements and to ask issues concerning training, career promotion, theorganization and terms and conditions of employment;

- Enable a face-to-face encounter to take place so that the interviewer canmake an assessment of how the candidate would be suitable for theorganization;

- Bring the applicant the same opportunity to assess the organization, theinterviewer and the job

 Disadvantages of interviews:

It could be lack of validity as a means of making sound predictions of performance,and lack reliability in the sense of measuring the same things for differentapplicants;

- Rely on the skill of the interviewer – many people are poor at interviewing,although “most think that they are good at it”

- Do not necessarily assess competence in meeting the demands of theparticular job;

- Can lead to biased and subjective judgments by interviewers

 Types of interviews

- Biographical interviews: the familiar methods of starting an interview is thebiographical approach A biographical approach is logical and provides somefactors of structure to the interview but it will not bring the desired

information unless interviewers do not understand thoroughly about whatthey need and are prepared with questions that will elicit the data they have

to make a prediction and a selection decision

- Structured or patterned interview: in a structured or patterned interview, theinterviewer follows a pre-test list of questions that are asked of allcandidates

- Unstructured interview: The nondirective interview is conducted with aminimum of questions asked by the interviewer and questions are not alwaysplanned in advance

- Situational and problem-solving interview: Situational interviewing ischaracterized by questions like “What would you do in this situation?”allowing the company to test on applicant’s ability in dealing with aparticular job problem

- Behavioral interview: It requires the applicant to share real examples of pastactions and results and it is based on the theory that past behavior is a usefulpredicting factor for future behavior

e Assessment centers

An assessment center is a set of simulated tasks or exercises that candidates (usuallyfor managerial positions) are asked for perform Observers rate performance onthese simulations and make inferences regarding each candidate’s managerial skillsand abilities Many organizations use assessment centers for external recruitmentand for internal promotion

An assessment center is usually used to evaluate a group of candidates (maximumsix candidates at a time from one to three days) with various techniques Typically,assessment center evaluate each candidate’s abilities through four areas: performskills and abilities in dealing problems, challenges and complex tasks

2.2.2.3 Checking and referencing

When one or two talent candidates were chosen from a pool of applicants, theprocess of recruitment and selection still does not finish completely Normally, HR

staff will need to conduct some other activities, such as: health checking, contactingwith reference process in order to give out the final decision.

a Checking

Before the job offer is made, the candidate will be required to conduct a physicalfitness test The purpose of health checking is to find a candidate who satisfies withworking requirements to create the highest working productivity Moreover,organization also could prevent risks from transmitting diseases for other staffs Theresults of the medial fitness test are recorded in a statement and are preserved in thepersonnel records

Additionally, some companies normally use more one-two tests in order checkapplicants before giving out a final decision:

Drug test – is normally used to measure presence of illegal drugs or controlledsubstances in urine

b Referencing

The main purpose of a reference is to obtain in confidence factual information about

a prospective staff It is simply necessary to identify the nature of the previous job,the period of time in employment, the reason for leaving job (if relevant), the salary

or rate of pay and, possibly, the attendance record (if necessary)

2.2.2.4 Making hiring decisions

a Job offer

The job offer may be extended by phone, letter or in person; whatever is customary

in your organization Most commonly, the job offer is handled by the HRdepartment At this time, salary and benefits are discussed and the prospective staff

is told of any further conditions that must be met If the candidate needs time tothink over the job offer, a time should be established for notification

b Signing contracts

All information regarding to the position and working conditions as discussed ornegotiated with staff in selection process must be explained or added in the laborcontract as an evidence for solving benefit conflicts in future (if have) This willensure legal rights for both staffs and employers.

2.2.3 Socialization process

Socialization is the process if orienting new staffs to the organization of the unit inwhich they will be working It is also the final stage of the recruitment and selectionprocess, a step to ensure that new staffs will start working well

Socialization consists of two keys activities, concluding: orientation/ induction andtraining:

2.2.3.1 Orientation/ Induction

Normally, there are two components should be conducted in the induction process

in organizations: company induction and department induction:

 Company induction

The first stage of induction is when the staff receives a detailed introduction to thecompany and their job A staff handbook is useful for this purpose, but there shouldalso be a face-to-face induction given which covers things like:

- A brief description of the company – its history, products, organization andmanagement

- Basic conditions of employment – hours of work, holidays, pension, scheme,and insurance

- Pay-pay scales, when paid and how, deductions, queries

- Sickness – notification of absence, certificates, pay

- Company rules/ regulations

- Disciplinary procedure, Grievance procedure and promotion procedure

- Education and training

- Health and safety arrangements

- Social and welfare arrangements

- Telephone calls and correspondence

- Travelling and subsistence expenses (if relevant)

 Department induction