ST.

MARY'S UNIVERSITY COLLEGE

SCHOOL OF GRADUATE STUDIES

THE EFFECT OF RECRUITMENT AND SELECTION

PRACTICE ON ORGANIZATIONAL PERFORMANCE;
THE CASE OF COMMERCIAL BANK OF ETHIOPIA

BY
ZEYNU KEMAL

JUNE 2020
ADDIS ABABA, ETHIOPIA
 THE EFFECT OF RECRUITMENT AND SELECTION
PRACTICE ON ORGANIZATIONAL PERFORMANCE:
THE CASE OF COMMERCIAL BANK OF ETHIOPIA

BY
ZEYNU KEMAL

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY, SCHOOL

OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION (HRM CONCENTRATION)

JUNE 2020
ADDIS ABABA, ETHIOPIA

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 ST. MARY'S UNIVERSITY COLLEGE
SCHOOL OF GRADUATE STUDIES

THE EFFECT OF RECRUITMENT AND SELECTION

PRACTICE ON ORGANIZATIONAL PERFORMANCE:
THE CASE OF COMMERCIAL BANK OF ETHIOPIA

BY
ZEYNU KEMAL

APPROVED BY BOARD OF EXAMINERS

___________________________ ___________________________

Dean, Graduate Studies Signature

_________________________ _______________________

Advisor Signature

_________________________ _______________________

External Examiner Signature

_________________________ _______________________

Internal Examiner Signature

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 DECLARATION

I, the undersigned, declare that this thesis is my original work, presented under the guidance of
Birhanu Endeshaw (PhD). All sources of materials used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part or in full to
any other higher institution for the purpose of earning any degree.

______________________ _____________________
Name Signature

St. Mary's University, Addis Ababa Ethiopia January 2020

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 ENDORSEMENT

This thesis proposal has been submitted to St. Mary's University College, School of
Graduate Studies for examination with my approval as a university advisor.

_______________________ _____________________

Advisor Signature

St. Mary's University College, Addis Ababa JUNE 2020

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 ACKNOWLEDGMENTS

In the name of God, the beneficent, the merciful. Praise to be God, lord of the worlds for granting
me life, faith, health, strength and ability to complete this research.

I am indebted to many people for their assistance and support I would like to express my heartfelt
gratitude during the period of this study. I begin with my advisor, Berhanu Endeshaw (PhD) for
his constructive comments, valuable suggestions and good guidance.

This study was also made possible by the assistance obtained from the respondents who have
demonstrated their willingness to complete the questionnaires and provide me with the required
information, valuable for the completion of the study. Hence, special thanks go to my colleagues
for their assistance and cooperation in the data collection process and their overall support and
encouragement.

Moreover, I will never forget to thank my true friends who have been there for helping me along
the way till this work was finally done. Finally, I would like to send my particular thanks to my
dear Mom her contribution is precious and her role will always remain unchallenged in my life.

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Table of Contents Page
DECLARATION......................................................................................................................... IV
ENDORSEMENT ........................................................................................................................ V
ACKNOWLEDGMENTS .......................................................................................................... VI
LIST OF FIGURES .................................................................................................................... IX
LIST OF TABLES ....................................................................................................................... X
LIST OF ABREVIATION ......................................................................................................... XI
ABSTRACT ............................................................................................................................... XII
CHAPTER ONE ........................................................................................................................... 1
1. INTRODUCTION ............................................................................................................... 1
1.2. Background of the study ............................................................................................... 1
1.3. Background of the organization ................................................................................... 2
1.4. Statement of the problem .............................................................................................. 2
1.5. Research Questions....................................................................................................... 4
1.6. Objectives of the study ................................................................................................. 4
1.7. Statement of Hypotheses .............................................................................................. 5
1.8. Significance of the study .............................................................................................. 5
1.9. Scope /Delimitation of the study .................................................................................. 6
1.10. Limitation of the study .............................................................................................. 6
1.11. Organization of the study .......................................................................................... 6
1.12. Definition of Terms................................................................................................... 7
CHAPTER TWO .......................................................................................................................... 8
2. LITERATURE REVIEW .................................................................................................... 8
2.1. Theoretical framework ................................................................................................. 8
2.1.2. Definitions of Recruitment ....................................................................................... 9
2.1.3. Sources of Recruitment ........................................................................................... 10
2.1.2. Definition of Selection ............................................................................................ 17
2.1.4. Selection Process .................................................................................................... 18
2.2. Improving the Effectiveness of Recruitment and Selection ....................................... 21
2.3. Staff Recruitment and Selecting Plan ......................................................................... 21
2.4. Challenges of Recruitment and Selection ................................................................... 23
2.5. 2.7 The Relationship between Recruitment and Selection, and Organizational
Performance. ......................................................................................................................... 26
2.6. Empirical framework .................................................................................................. 27

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 2.7. Conceptual Framework............................................................................................... 28
2.8. Organizational Performance ....................................................................................... 31
2.9. Summary of Literature................................................................................................ 32
CHAPTER THREE .................................................................................................................... 34
3. RESEARCH METHODOLOGY....................................................................................... 34
3.1. Research Design ......................................................................................................... 34
3.2. Research Approach ..................................................................................................... 35
3.3. Population, sampling size and Sampling procedure ................................................... 36
3.4. Data Sources and Data Collection Method................................................................. 38
3.5. Data analysis method .................................................................................................. 39
3.6. Validity and Reliability .............................................................................................. 41
3.7. Ethical Consideration ................................................................................................. 42
CHAPTER FOUR ....................................................................................................................... 43
4. DATA PRESENTATION AND ANALYSIS ................................................................... 43
4.1. Respondents’ Demographic Description: ................................................................... 44
4.2. Normality Test: ........................................................................................................... 45
4.3. Descriptive Analysis of Study Variables: ................................................................... 46
4.4. Correlation analysis .................................................................................................... 55
4.5. Multiple Regression .................................................................................................... 57
CHAPTER FIVE ........................................................................................................................ 66
5. SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION ................ 66
5.1. Summary of findings: ................................................................................................. 66
5.2. CONCLUSION .......................................................................................................... 70
5.3. Recommendation ........................................................................................................ 72
5.4. Suggestions for Further Studies .................................................................................. 74
REFERENCES ............................................................................................................................ 75
APPENDIX- 1 QUESTIONNAIRES ........................................................................................ 78
APPENDIX – 2 DESCRIPTIVE STATISTICS OF THE QUESTIONARIES ..................... 83
APPENDIXES- 3 MODEL SUMMARY .................................................................................. 86

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LIST OF FIGURES
Figure 2-1 Source of recruitment .................................................................................................. 11
Figure 2-2 flow chart of recruitment and selection ....................................................................... 22
Figure 2-3 Recruitment selection plan .......................................................................................... 23
Figure 2-4 Conceptual framework ................................................................................................ 29
Figure 4-1 Initial Screening .......................................................................................................... 52
Figure 4-2 Interview ..................................................................................................................... 52
Figure 4-3 Selection Test .............................................................................................................. 53
Figure 4-4 Scatter plot for linearity internal recruitment & organization performance ............... 58
Figure 4-5 Scatter plot for linearity External recruitment and organizational perfromance ......... 59
Figure 4-6 Scatter plot for linearity selection and organizational performance ........................... 59
Figure 4-7 Histogram: Standardized Residual .............................................................................. 61
Figure 4-8 Normal P-P plot of Standardize Residual ................................................................... 62

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 LIST OF TABLES
Table 3 1 Total Number of Target population .............................................................................. 37
Table 4- 1 Demographic Characteristics of respondents .............................................................. 44
Table 4- 2 Normality distribution of study variables .................................................................... 46
Table 4- 3 Response on internal recruitment of the bank. ............................................................ 47
Table 4- 4 Response on external recruitment of the bank ............................................................ 48
Table 4- 5 Response on selection practice of the bank. ................................................................ 50
Table 4- 6 Response on organizational performance of the bank. ................................................ 54
Table 4- 7 Correlation analysis ..................................................................................................... 56
Table 4- 8 Collinearity Statistics................................................................................................... 60
Table 4- 9 Regression Model Summary ....................................................................................... 62
Table 4- 10 Coefficient Regression .............................................................................................. 63

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 LIST OF ABREVIATION

CBE- Commercial Bank of Ethiopia

HR- Human Resource

HRM- Human Resource Management

DV- Dependent Variable

IV- Independent variable

VIF- Variance Inflation factor

SPSS- Statistical Package for Social Science

EAAD- East Addis Ababa District

NAAD- North Addis Ababa District

SAAD- South Addis Ababa District

WAAD – West Addis Ababa District

PM- Performance Management

M - Mean

SD - Standard Deviation

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 ABSTRACT

Recruitment and selection, as a human resource management function, is one of the activities that
impact most critically on the performance of an organization in terms of achieving its ultimate goal
(Costello, 2006). The purpose of this study is to identify the effect of employee recruitment and selection
on organizational performance in CBE. The study focused particularly on identifying the effect of
internal recruitment, external recruitment and selection practice on CBE performance. The study also
reviewed literature on recruitment and selection with theoretical, empirical and conceptual
frameworks. To achieve the objective, the researcher was employed both descriptive and explanatory
design method. study was also applied both qualitative and quantitative research approach (mixed
method approach). Purposive sampling technique was used to select branches and process unit’s
representative of commercial bank of Ethiopia for the study. Survey questioners was used to collect
the data from a sample of 377 employees who are working in under four Addis Ababa districts and
head office in commercial Bank of Ethiopia. Descriptive and inferential statistics were employed for
the data analysis process. The descriptive statistics include the mean, frequencies, percentage and
standard deviation. The inferential statistics (correlation analysis and regression analysis) was also
used in analyzing the relation between independent and dependent variables. The finding indicates
that internal recruitment, external recruitment and selection correlated and have significance effect
on organizational performance. the internal source of recruitment methods of the bank is not rational,
acceptable and fair. Additionally, CBE recruitment and selection practice did not reduce potential
legal complications and did not save training time and money including, did not help CBE to gain
competitive advantage. And most of employees are not motivated to stay with the organization. So
that the researcher come up with recommendation that the bank should look and improve other
process of HR linked with recruitment and selection like the talent management (job analysis and job
specification) and compensation and reward management in order to gain competitive advantage. The
management should also improve the promotional and transfer practice and criteria beside except for
punishments, transfers have to be considered after a discussion with the employee of his or her console.
And All legislation and policies pertaining to recruitment and selection should also be made
available to all staff members of the bank

Keywords: Recruitment, Selection, Internal Sources, External Sources and performance

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 CHAPTER ONE
1. INTRODUCTION

1.2. Background of the study

Human Resource Management (HRM) activities play a major role in ensuring that a firm will
prosper and succeed. In most organizations, such success is measured by the balance of such
complementary characteristics as reaching goals, employing the skills and abilities of employees
efficiently and ensuring the influx and retention of well-trained and motivated employees
(Gberevbie, 2010). Recruitment and selection are essential tools in supporting the human resource
managers and the entire company to hire the right people and retain them (O‘Brien, 2012).

Recruitment and selection can play an important role in shaping an organization’s effectiveness
and performance, if organizations are able to acquire employees who already possess relevant
knowledge, skills and aptitudes and are able to make an accurate prediction regarding their future
abilities. Recruitment and selection also have an important role to play in ensuring employees
performance and positive organizational outcomes. It is often claimed that selection of employees
occurs not just to replace departing employees or add to a workforce but rather aims to put in place
workers who can perform at a high level and demonstrate commitment (Ballantyne, 2009).

Bratton and Gold (2007), differentiate the two terms while establishing a clear link between them
by stating that recruitment is the process of generating a pool of capable people to apply for
employment to an organization. Selection is the process by which managers and others use specific
instruments to choose from a pool of applicants a person or persons more likely to succeed in the
job(s), given management goals and legal requirements. Recruitment and selection form a core
part of the central activities underlying human resource management: namely, the acquisition,
development and reward of workers. It frequently forms an important part of the work of human
resource managers – or designated specialists within work organizations.

However, recruitment and selection decisions are often for good reason taken by non-specialists,
by the line managers. This is, therefore, an important sense in which it is the responsibility of all
managers, and where human resource departments exist, it may be that Human Resource (HR)

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managers who play more of a supporting and advisory role to those people who will supervise or
in other ways work with the new employee. According to Mullins (2010), for the Human Resource
Management (HRM) function to remain effective, there must be consistently good levels of
teamwork, plus ongoing co-operation and consultation between line managers and the HR
manager. This is most definitely the case in recruitment and selection as specialist HR managers
(or even external consultants) can be an important repository of up-to-date knowledge and skills,
for example on the important legal dimensions of this area.

By using the right selection methods, one can ensure that the candidate does not only has the right
skills for the job, but also possesses the right personality to fit into the existing organizational
culture. Once that “right” person has been employed, the company has to ensure that the right
incentives are put in place. However, recruitment and selection are characterized by potential
difficulties and it is necessary to keep abreast of developments in research in the field of Banking
industry. in order to use the proper techniques used to recruit and select employees, personnel
managers should be aware of potential candidate on performance of the job and bringing
challenges in a long-term success for the organization (Ivancevich, 1998). The research work seeks
to assess the effect of employee recruitment and selection on organizational performance in the
case of Commercial Bank of Ethiopia.

1.3. Background of the organization

The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of the State
Bank of Ethiopia in 1942.CBE was legally established as a share company in 1963.In 1974, CBE
merged with the privately owned Addis Ababa Bank. Since then, it has been playing significant
roles in the development of the country. Currently CBE has more than 22 million account holders
and the number of Mobile and Internet Banking users also reached more than 2.5 million as of
June 30th 2019. Active ATM card holders reached more than 8 million.

1.4. Statement of the problem

According to Maloney (2002), Major challenges many organization are facing during recruitment
and selection process while using of different recruitment methods (like suggestions from current
employees, word of mouth, government job services, college placement offices, posting job

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announcements on bulletin boards, executive search firms and the Internet; identification of labor
pools, application of variety of selection tools namely, application forms, interviews, reference
checks, pre-employment tests and trial period). Selection bias and discrimination based on age,
sex, marital status, ethnic origin, religious preference, sexual preference or disabilities are also
challenges facing organizations like the banking industries in obtaining adequate and trained staff.

The growth and development of any economy is connected directly or indirectly with the banking
industry. In Ethiopia, it is the wish of most banking firms to engage the best human resource in
order to channel their collective effort into excellent performances, increase in productivity, job
satisfaction and above all meeting customers’ expectations in terms of quality, cost, time and
safety. Recent recognition of the strategic potential of recruitment and selection to enhance
organizational performance put a lot of emphasis on getting the ‘right person’ for the right post.
(Armstrong, 2009).

Furthermore, as stated in the Corporate strategy of CBE 2015/16-2019/20 human resource skill
and competency gap as a major weakness of the bank. This is because of poor recruitment and
selection practice of the bank. Due to this Commercial bank of Ethiopia invest 32,125,000 Birr for
Technical training 4,088,000 for developmental training and 2,704,000 for ethical training, (CBE
nine months’ corporate performance and way forward, 2019). In order to fill the skill and
competency gap the bank is investing too much expense for training in order to fit its employee
for the given job. However, commercial bank of Ethiopia can reduce training expense through
proper recruitment and selection process which ultimately help the bank to acquire competent
employees for specific job. It is therefore clear that the foregoing that unconventional recruitment
and selection practices can ruin any business plan thereby affecting the overall target of the bank.
There is the need for management to put in place policies or strategies that will help recruit and
select the best employees to strive towards the achievement of organizational goals and objectives.

Adeyemi, Dumade and Fadare (2015) in the study of the influence of recruitment and
selection on organizational performance using questionnaire to study a sample of only twenty
respondents of Access Bank branch. The study indicated that, advertising of job vacancies to
general public, use of employment agent(s), the study also show that employee referrals are mostly

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the mode for recruiting potential employees, it was also realized that the method used in the
recruiting and selection process was very effective. The study made use of a very small sample
which cannot be generalized to represent the entire access bank employees.

Additionally, several studies have been carried out in this area in Ethiopia such as Fitsum, (2017),
Elisabet, (2016), Tamrayehu (2016) and Hiwot, (2019). However, none looked at the effect of
recruitment and selection on the organizational performance. This study fills that gap.

Generally, there are no valuable research have been conducted to solve the above recruitment and
selection problems specially to improve productivity of the bank. This is therefore, the purpose of
the study is to give recommendations for the effect of recruitment and selection (internal
recruitment, external recruitment and selection) to improve the performance of the organization.

1.5. Research Questions

The paper address to answer the following questions.
1. How the internal recruitment method affects organizational performance (CBE)?
2. Does external source of recruitment affect organizational performance (CBE)?
3. How selection affects organizational performance (CBE)?

1.6. Objectives of the study

1.6.1. General objective

The general objective of the study is to identify the effect of recruitment and selection practice on
organizational performance in the case of Commercial Bank of Ethiopia.
1.6.2. Specific objective
 To determine the effects of internal source of recruitment on organizational performance
in the case of Commercial Bank of Ethiopia.
 To examine the effects of external source of recruitment on organizational performance in
the case of Commercial Bank of Ethiopia.
 To evaluate the effects of Selection on organizational performance in the case of
Commercial Bank of Ethiopia.

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 1.7. Statement of Hypotheses
The research hypotheses are
H0: Internal Source of recruitment has no significant effect on organizational
performance (CBE).
H1; Internal Source of recruitment has significant effect on organizational performance
(CBE).
H0: External Source of recruitment has no significant effect on organizational performance
(CBE).
H1; External Source of recruitment has significant effect on organizational performance
(CBE).
H0: Selection has no significant effect on organizational performance (CBE).
H1; Selection has significant effect on organizational performance (CBE).

1.8. Significance of the study

This study is considered as one of the few local studies that conduct the effect of recruitment and
selection practices on organizational performance in the commercial bank of Ethiopia. The result
of this study is important not only for the CBE but also for the other sectors, it will help to identify
the recruitment and selection practices that leads to organizational performance. This study is also
beneficial for academics to compare the recruitment and selection practice on organizational
performance aspects. Therefore, the importance of this study derives from the importance of the
variables that is dealing with and the following scientific and practical considerations:
 Provide a comprehensive survey of the study variables concepts and dimensions that can
be relied upon to measure the study variables, so that it can benefit researchers and
practitioners as a starting point for their future research.
 Provide a systematic basis in the field of human resource management measuring
recruitment and selection practices effect on organizational performance that may help to
rely on measures that have a high degree of reliability and validity.
 Highlighting the nature and importance of the recruitment and selection practices for the
benefit of the future project strategies that CBE and other company can benefit from.
 Contribute to the development of the CBE which may lead to maintain and have a
competitive advantage.

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 1.9. Scope /Delimitation of the study
1.9.1. Geographically

Recruitment and selection practice are essential to the organization in order to assign the right
person for the right position to carry out the daily task of the organization. This research is
delimited to CBE Head office which is found in Addis Ababa and four Addis Ababa Districts only.
Due to time and financial shortage of the researcher.
1.9.2. Conceptually
Since to study all variables of the effect of recruitment and selection on organizational performance
are impossible, the researcher was delimited to study the only three variables of recruitment and
selection which is Internal recruitment, external recruitment and Selection, Because, if the bank
have well managed such variables, the performance of the organization is increased and this leads
to organization to achieve its objective, mission and vision.
1.9.3. Methodological
This study is delimited with some methodologies. The study adopts non-probability and
probability sampling procedure. It allows researchers to approach target directly. Beside
descriptive approach also used and primary and secondary data source also used in the study. In
addition to that researcher employed both quantitative and qualitative methods of data analysis
methods is used.

1.10. Limitation of the study

Every research has its own challenges. Notwithstanding, this research had its own limitations.
During data collection, the researcher couldn’t attend physically due to the COVID-19 pandemic
disease so participants were sending their response through email in order eradicate physical
contact regarding with the disease some employees were absent so it was quite difficult getting in
touch with them. Due to the combination of studies and work the researcher also did have limited
time, but these limitations did not affect the validity of the study.

1.11. Organization of the study

This thesis was organized in to five chapters. The first chapter dealt with the introductory part of
the study, which includes back ground of the study, statement of the problem, objectives of the
study, scope of the study, significance of the study, definition terms and organization of the paper

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are incorporated. The second chapter provides a brief literature review regarding the research topic.
The research methodology and design were discussed in the third chapter. Chapter four dealt with
research analysis and interpretation of the finding and finally summery of the major findings,
conclusions and recommendations were discussed under in chapter five. The survey questionnaire
and the SPSS outputs that was used for data collection and analysis is attached to this document
as an appendix.

1.12. Definition of Terms

Human Resources (HR): People in working environment gifted with the right ability, skills and
attitude (Bratton and Gold, 2007).

Human Resources Management (HRM): Body of knowledge that encompass staffing,

rewarding, employee development, employee maintenance and employee relations (Bratton and
Gold, 2007)

Recruitment: is the process of generating a pool of capable candidates to apply to an organization

for employment (Bratton and Gold, 2007).

Selection: is the process of making a hire or no hire decision regarding each applicant for a job.
(Gomez, 1991).
Organizational performance: is a strategic and integrated approach to delivering sustained
success to the organizations (Armstrong and Baron, 2004).

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 CHAPTER TWO
2. LITERATURE REVIEW
Chapter one broadly introduced the research aim and objectives and presented an overview of
the organization of the paper. This chapter reviews critically employee recruitment and
selection in organizations and from the perspective of human resource management. The
development of a conceptual and empirical framework is also included.

2.1. Theoretical framework

2.1.1. The Concept of Recruitment and Selection
According to Windolf (1986), the choice of a particular recruitment strategy by a firm is specific
to the resources available to the organization at hand and its environmental dynamics. Boxall,
Purcell and Wright (2007), highlight five different questions an organization has to answer to
have an effective recruitment strategy in order to pursue its survival and success. Those
questions are “Whom to recruit?”, “Where to recruit?”, “What recruitment sources to use?”,
“When to recruit?” and “What message to communicate?” The notion of effectiveness in this
study relates to the manner by which organizations implements its employment policies. The
essence is to understand whether such policies are applied appropriately in the way they have
been designed.

As discussed by Jackson et al. (2009), human resource management approaches in any business
organization are developed to meet corporate objectives and materialization of strategic plans.
The nature of recruitment and selection for a company that is pursuing HRM approach is
influenced by the state of the labor market and their strength within it. Furthermore, it is
necessary for such companies to monitor how the state of labor market connects with potential
recruits via the projection of an image, which will have an effect on and reinforce applicant
expectations. Bratton & Gold (1999), were of the view that organizations are now developing
models of the kind of employees they desire to recruit, and to recognize how far applicants
correspond to their models by means of reliable and valid techniques of selection.

Also related to the success of a recruitment and selection process are the strategies an
organization is prepared to employ in order to identify and select the best candidates for its
developing pool of human resources. Organizations seeking recruits for base-level entry

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 positions often require minimum qualifications and experiences. These applicants are usually
recent high school or university/technical/college graduates many of whom have not yet made
clear decisions about future careers or are contemplating on engaging in advanced academic
activity. At the middle levels, senior administrative, technical and junior executive positions
are often filled internally. The push for scarce, high-quality talent, often recruited from external
sources, has usually been at the senior executive levels. Most organizations utilize both
mechanisms to effect recruitment to all levels. The focus of recruitment and selection according
to Montgomery (1996), is on matching the capabilities and inclinations of prospective
candidates against the demands and rewards inherent in a given job.

Odiorne (1984), postulated that the quality of recruitment practices put in place by an
organization is a function of the quantity of application that will be received; he stated further
that the relative effectiveness of the next human resources phase (selection) is inherently
dependent upon the quality of applicant attracted. Furthermore, Smith and Robertson (1993),
agreed with the above assertion by stating that the more effectively the recruitment phase is
implemented and carried out, the easier and accurate the selection process becomes in making
decisions on which applicant to select. Odiorne (1984), added that the result of effective
recruitment and selection are the reduction on labour turnover, good employee morale and
improves organization performance.

2.1.2. Definitions of Recruitment

Various researchers have contributed to the field of HRM, and have offered intensive and
profound knowledge on the branches of HRM especially on recruitment and selection. Below
is some of the different definitions of recruitment;

 Recruitment is the process of generating a pool of capable candidates applying to an

organization for employment (Gold, 2007). This suggests that applicants with experience and
qualifications most closely related to job specifications may eventually be selected.
Organizations become concerned when the cost of a mistake in recruitment is high. According
to Armstrong (2006), the aim is to obtain, at a minimum cost, the number of suitable and
qualified candidates to satisfy the needs of the organization. The organization attracts
candidates by means of identifying, evaluating and using the most appropriate sources of

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 applicants. El-Kot and Leat (2008), observation is that recruitment begins with advertising
existing vacancies.

 According to Eze (2002), recruitment is the process of finding and attempting to attract job
candidates who are suitably qualified and therefore capable of filling vacancies in job positions
effectively. The purpose is to encourage them to apply for the vacant position. Costello (2006),
affirm that recruitment is a set of activities and processes used to legally obtain adequate
number of qualified applicants at the right place and time to enable applicant and the
organization to select each other for their own optimum interest.

 Another scholar Jovanovic (2004), augured that recruitment is a process of attracting a great
pool of high-quality applicants to select the best among them. Omale (1992), in “past practice
in personnel management in the Nigeria civil service: issues and procedures” detained
recruitment as the process which starts from getting an applicant interested enough in a job and
in a particular organization to write an application and the process stops when his application
has been received in the organization.

Judging from the above various definition of recruitment as given by professional and scholars,
it is apparent that recruitment borders or deals with the plan advertisement of exiting vacant
position in an organization in order to wool or attract suitable and qualify applicant to apply for
the vacant position or offices for employment in the said organization. Based on the above
recruitment is a very specialized field in Human Resources practices as it involves techniques
that will adequately identify the pool of skilled and quality applicants.

2.1.3. Sources of Recruitment

Full-cycle recruiting is a term used by human resources specialists who manage the recruitment
process from start to finish as shown in Figure 2.1. Full-cycle recruiting begins with sourcing
candidates, which means looking for prospective applicants whose qualifications might be
suitable for the job openings you have.

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 Figure 2-1 Source of recruitment

Sourcing has evolved in the past several years with the proliferation of job and career sites.
Every organization has the option of choosing the candidates for its recruitment processes from
two kinds of sources: internal and external sources. The sources within the organization itself
like transfer of employees from one department to other, promotions to fill a position are known
as the internal sources of recruitment. Recruiting candidates from all the other sources (such as
outsourcing agencies etc.) are known as the external sources of recruitment.

2.1.4. Internal Sources of recruitment

Internal sources refer to recruiting employees from within the organization. In deciding
requirement of employees, initial consideration should be given to a company's current
employees, which is concerned with internal recruitment. They include those who are already
available on the pay roll of the company. This is important source of recruitment as it provides
opportunities for better development and utilization of existing human resources in the
organization. Armstrong (2000a), proposed that first consideration should be given to internal
candidates, although some organizations with powerful equal opportunity policies (often local
authorities) insist that all internal candidates should apply for vacancies on the same footing as
external candidates.

Aspects of recruitment under internal sources are as follows:

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 Promotions: It refers to promoting or upgrading an employee who is already existed in the
pay roll and contributed to the organizational performance. It is shifting an employee to a
higher position with high responsibilities, facilities, status and pay. Usually, many
companies fill higher job vacancies by promoting employees who are considered fit for
such positions. This is due to fact that it has a great psychological impact over other
employees for their motivation towards better performance. Internal recruitment efforts
very often result in promotions. Promotion signifies reward for past performance and
encourages employees in their efforts (Sherman, Bohlander, & Snell, 1998).
 Transfers: Transfer is a lateral shift causing movement of individuals from one position
to another. Langseth (1995), consider transfers as being affected when the need for people
in one job or department is reduced or increased, if the work load reduced employees would
want to relocate to other areas where they can have enough tasks to perform. Under it,
employees are recruited internally through transfer from one work place to another. It refers
to the process of interchanging the job duties and responsibilities of employees from one
place to another or from one department to another without any promotion in their position
or grade. It is a good source of generating qualified employees from over-staffed
departments (Keshav, 2013).

 Job Posting: Job posting is an open invitation to all employees in an organization to apply
for the vacant position. It provides an equal opportunity to all employees currently working
in the organization. Today it has become a very common practice in many organizations
across the world. Under this, vacancy announcement is made through bulletin boards or in
lists available to all employees. Interested employees, then apply for the post being
advertised. In this way, it has become one of the cost saving techniques of recruitment
(Keshav, 2013).

 Job bidding: is more effective when it is part of a career development program in which
employees are made aware of opportunities available to them within the organization. For
example, HR departments may provide new employees with literature on job progression
that describes the lines of job advancement, training requirements for each job, and skills
and abilities needed as they move up the job-progression ladder.

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There are number of key advantages in using internal recruitment and these include:

 Labor Turnover: The turnover of valuable employees is reduced through internal

placement. Here, star employees within the company can be reassigned to an area
within the organization where the need is greater. Restricting the vacancy to internal
candidate can also help retain employees who might otherwise have left the
organization (Sunderland &Canwell, 2008).
 Performance: Internal recruitment might offer cost saving in the human resource
management process because of the record of performance available to recruiters.
An internal candidate has developed a record of accomplishment of performance
during employment that provides the most accurate assessment of her on the job
professional skills and experience. If the company conducts formal performance
reviews, the employee performance and goal-setting information will give valuable
insight to recruiters when assessing internal candidates (Keshav, 2013).

 Time Value: When qualified candidates exist internally, recruiting candidates

internally can decrease the time it takes to fill a position. This is particularly useful
in a tight job market, when the number of external candidates applying for a given
job opening can become astronomical. In such cases, selecting among qualified
internal candidates may be efficient because it offers costs savings, such as those
associated with advertising and from using staffing resources to interview numerous
external candidates (Keshav, 2013).

 Corporate Culture: Corporate culture might formally relate to the goals and
objectives of the company as articulated in its vision and mission statement. It
informally includes the business attitude, customs and etiquette. An external
candidate that fulfills the experience and skills needed for a position might not fit
into the organizational culture. Internal candidates are already familiar with the
company's culture, policies and procedures. For example, this might manifest itself
in how meetings are conducted, projects are organized or the use of consensus
building in the decision-making process (Keshav, 2013).

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The principal disadvantages of internal recruitment are:

 Limited Choice: Internal recruitment provides limited choice of talent available in

the organization as it avoids the arrival of fresh candidates. Internal recruitment does
not tap any candidate from outside the organization; hence, the number of potential
candidates for the post is limited to those from within the organization. There may
be far better external candidates who have more experience and better qualifications
(Sunderland &Canwell, 2008).
 Implementation of Traditional System: Internal recruitment requires the
implementation of traditional form, system, process and procedures. In addition, this
limits the scope of fresh talent in the organization (Keshav, 2013).
 Position: In using internal recruitment, existing employees, whether competent or
not, will feel that they have an automatic right to be given a more senior post
(Sunderland &Canwell, 2008).
 Costly: Taking into consideration that when an employee is promoted, instantly
vacancy instantly arises. In this regard, another employee is to be recruited to fill
that position, which may be costly affair (Sunderland &Canwell, 2008).
 Limited Internal Sources: The source of supply of manpower is limited in internal
recruitment method. When an employee is promoted, his/her previous position will
be vacant and another personnel is to be recruited to fill that vacant position
(Keshav, 2013).

2.1.5. External Sources of recruitment

External sources of recruitment refer to attracting applicants from outside a particular
organization to fill vacant positions. Like internal sources, they are useful to attracting
competent applicants to apply for advertised positions in various organizations. Broad varieties
of methods are available for external recruiting. Organizations should fully assess the kinds of
positions they want to fill and select the recruiting methods that are likely to reduce the best
results. External source of recruitment include advertisement, e-recruitment, employment
agencies, labour office, education and training establishment (Beardwell, 2007; Cober&
Brown, 2006). Details of these sources are discussed in this section.

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 Advertisement: is the most common form of external sources of recruitment.
Organizations advertise vacant position on both electronic print and media to access a larger
pool of applicants. As cited by Nel et al. (2009:226), an advertisement has communication
as its basic underlying principle and it should be worded in a manner that triggers responses
from job seekers. Recruiters should formulate the wording of advertisements in a manner
that is not discriminatory. Advertisements are expensive but attract a larger pool of
applicants than internal recruitment processes. It is, however, more difficult to evaluate
external applicant than those that are already employed within the organizations. According
to Armstrong (2006), the objectives of an advertisement should be to:
Attract attention – it must compete for the interest of potential candidates against other
employers;
Create and maintain interest – it has to communicate in an attractive and interesting way
information about the job, the company, the terms and conditions of employment and the
qualifications required;
Stimulate action – the message needs to be conveyed in a manner that will not only focus
people’s eyes on the advertisement but also encourage them to read to the end, as well as
prompt a sufficient number of replies from good candidates (Armstrong, 2006).

 E-Recruitment: or online recruitment uses web-based tools such as a firm’s public internet
site or its own intranet to recruit staff. The processes of e-recruitment consist of attracting,
screening and tracking applicants, selecting, and offering jobs or rejecting candidates.
Cappelli (2001), has estimated it that it costs only about one-twentieth, as much to hire
someone online. The internet has become a way for employers to display company image
and advantages over competitors (Rotella, 2000). Many internet users know the difficulty,
frustration and inefficiencies of sorting through information to find applicable and useful
material. However, many companies find it difficult to integrate the Internet with their
existing systems (Brake & Lawrence 2000).

 Employee Referrals: An employee referral program is a system where existing employees

recommend prospective candidates for the job offered, and in some organizations if the
suggested candidate is hired, the employee receives a cash bonus. Under this method, a

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 candidate is appointed on the recommendation of some currently working employees.
Hence, the HR managers of various companies depend on the present employees for
reference of the candidates for various jobs. This source reduces the cost
and time required for recruitment. Further, this source enhances the effectiveness 9of
recruitment. HR managers offer various incentives/rewards including cash incentives to
the current employees for referring the best candidates (Rajarao, 2010).
 Employment Agencies: Employment agencies, sometimes referred to as labor brokers,
even though they can face criticism from labor unions in Ghana, tend to be fast and efficient
in recruiting applicants for specialized positions. For a fee collected from either the
employee or the employer, usually the employer, these agencies do some preliminary
screening for the organization and put that organization in touch with applicants. Private
employment agencies differ considerably in the level of service, costs, policies, and types
of applicants they provide. Employers can reduce the range of possible problems from these
sources by giving a precise definition of the position to be filled (Sims, 2002).
 Labor Offices: are sources of certain types of workers. In some industries, such as banking,
unions have traditionally supplied workers to employers. A labor pool is generally available
through a union, and workers can be dispatched to particular jobs to meet the needs of the
employers. In some instances, the union can control or influence recruiting and staffing
needs. An organization with a strong union may have less flexibility than a non-union
company in deciding who will be hired and where that person will be placed. Unions also
can work to an employer’s advantage through cooperative staffing programs, as they do in
the building and printing industries (Keshav, 2013).
 Educational and Training Establishments: Managers of organizations may visit
educational institutions such as universities and colleges to attract top students, especially
during their final years of study to apply for vacant positions. This method of recruitment
is also referred to as campus recruiting and is one of the cheapest methods of recruitment.
It introduces final year students to the institution. The recruiter normally makes a
presentation to final year students and invites desirable students to visit public institutions
exposing them to different areas within the organization (Nel et al., 2009:227).

As with any recruiting method, hiring from outside an organization instead of promoting from
within the company carries both advantages and disadvantages. Some of the advantages are:
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  When an organization recruits externally, it opens the organization up to a larger pool
of applicants, which increases its chance to find the right person for the job.
 Looking outside the organization also allows a company to target the key players that
may make its competition successful. Hiring a candidate with a proven record of
achievement for the competition allows the company to get an insider's view as to what
the competition is doing to be fruitful. This provide the organization a chance to stay a
step ahead of the competition.
 External recruitment provides an opportunity for a new outlook on the industry that a
company may need to stay competitive.
 Bringing in new talent from the outside can help motivate the current employees to
produce and attain more in hopes of obtaining the next promotional opportunity.
 Hiring an external candidate also opens up many opportunities to find experienced and
highly qualified and skilled candidates who will help a company meet its diversity
requirements.
 The biggest advantage of external recruitment is that the company has no limited supply
of candidates and can choose employees all over the world.
According to Duggan & Croy (2004) external recruitment in an organization can face challenges:

 External recruitment requires an employee to familiarize to the new environment and if

the new recruit is in management, the employees may tend to resist change that he or she
tries to implement because these changes may work against the organizational culture.
 This method of recruitment can indicate that the management of the organization fails to
train or motivate their staff through promotion opportunities and career progression.
 In addition, external recruitment can lead to a high rate of labor turn over when employees
realize that there is no room for career advancement in the organization (Manyonyi, 2011).

2.1.2. Definition of Selection

Mondy (2010), refers to selection as „the process of choosing from a group of applicants those
individuals best suited for a particular position in an organization. ‟ Whereas the recruitment
process is aligned to encourage individuals to seek employment with the organization, the
selection process is to identify and employ the best-qualified and suitable individuals for
specific positions. Traditionally, it was assumed that organizations could choose amongst

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applicants and that they would accept all job offers. However, attracting a large number of
applicants was not the problem, but recruiting the right applicants became the main concern
amongst employers (Branine, 2008). With the oversupply of unskilled applicants
(Nzukuma&Bussin, 2011), it can be assumed that employers would be very careful before
selecting any applicants. Employer decisions about the selection of employees are central to
the operation of organizations and to a series of outcomes that matter to individuals,
organizations, and society.
Amos (2004), as well as Mathis and Jackson (2006), define selection as the process of selecting
the most suitable applicants. The process, according to them, is guided by predetermined
selection criteria such as job descriptions, job specifications and job profiling and commences
after the recruitment process has been completed. Robbins (2001), point out that the objective
of the selection process is to match the applicants‟ ability, knowledge, skills and experience
with job requirements in a fair and legal manner. This means that selection panels, in their quest
to select applicants with potential. Perhaps the most basic question in this area is why
employers engage in selection efforts at all.

2.1.4. Selection Process

Employer decisions about the selection of employees are central to the operation of
organizations and to a series of outcomes that matter to individuals, organizations, and society.
Perhaps the most basic question in this area is why employers engage in selection efforts at all.
Managers who are involved in hiring employees need to understand the skills and abilities that
are required in a particular job and determine which candidates have those capabilities.
Interviews, reference checks, tests, applications and résumés can all help identify differences
among candidates. Managers can make their selection decisions with a fuller awareness of the
applicants‟ strengths and weaknesses (Tjosvold and Newman, 2003).

2.1.5. Screening
Screening, popularly known as short listing, is the first step after the recruitment process is
completed and applications received. In this step, all the applications received by the due date
are screened and those that do not correspond to the requirements stipulated in the
advertisement are immediately eliminated in this step. As Cuming (1994) and Nel et al. (2009),
caution, selection panels have to be careful not to discriminate against applicants with potential.
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Their decisions should be guided by short-listing criteria that is developed against the job
requirements stipulated in the advertisements. Furthermore, they need to ensure that enough
time is set aside for short-listing.

2.1.6. Selection tests

Selection tests are often used as part of a selection procedure for occupations where a large
number of recruits are required, and where it is not possible to rely entirely on examination
results or information about previous experience as the basis for predicting future performance.
Tests usually form part of an assessment center procedure. Intelligence tests are particularly
helpful in situations where intelligence is a key factor, but there is no other reliable method of
measuring it. Aptitude and attainment tests are most useful for jobs where specific and
measurable skills are required, such as typing or computer programming.
Personality tests are potentially of greatest value in jobs such as selling where “personality‟ is
important, and where it is not too difficult to obtain quantifiable criteria for validation purposes.
It is essential to evaluate all tests by comparing the results at the interview stage with later
achievements. To be statistically significant, these evaluations should be carried out over a
reasonable period and cover as large a number of candidates as possible. In some situations, a
battery of tests may be used, including various types of intelligence, aptitude and personality
tests. These may be a standard battery supplied by a test agency, or a custom-built battery may
be developed. The biggest pitfall to avoid is adding extra tests just for the sake of it, without
ensuring that they make a proper contribution to the success of the predictions for which the
battery is being used (Philipo, 2008).

2.1.7. Reference & background check

Usually advertisements require that applicants provide the names and contact details of people
who can serve as referees to them in case their applications are considered. Reference checks
are used to verify the information that is supplied by applicant and are usually done
telephonically. Although most referees are reluctant to respond to certain questions (Mathis and
Jackson, 2006), reference checks can be used to gather as much information that will be used
in deciding whether to appoint or decline to appoint the applicants.

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References provide the organization with other people’s perceptions of the candidate’s
professional ability. The company should contact the candidate’s previous employers and
colleagues. Questions to ask references might address the candidate's creativity and initiative.
This is mostly the reason why conditional job offers are given in other to check the authenticity
of what the candidate provided on the application form (Snell and Bohlander, 2010).
References are one of the more popular and „traditional‟ tools in the selection process.
However, the validity and reliability of references has been questioned, particularly with
respect to their unstructured and often ambivalent nature (Heraty and Morley, 1998).
2.1.8. Interview
Interviews are virtually used by all organizations for selection purposes. In support of this,
Newell and Tansley (2001), indicate that interviews are by far the most widely used personnel
selection procedure. With the use of interviews, managers of organizations get an opportunity
to meet the applicants directly. The interview also provides the applicants with an opportunity
to also learn more about the public institution. The purpose of the selection interview is to
gather as much information and to use such information to arrive at a selection decision
(Redman & Wilkinson, 2001:31). During the interview, panel members (interviewers) normally
pose questions to which the interviewee is expected to respond. Responses to the questions are
often captured by means of scores as determined the interviewers. The applicant that obtains
the highest score is recommended for appointment (Wilkinson, 2001:32). Because of interview
ambiguity, efforts must be made to ensure that all interviewees are being asked the same
questions (Gomez-Majia et al., 2004:175).
2.1.9. Physical Examination
Applicants are often expected to undergo test(s) to determine if they are fit to perform the job,
should they be appointed. The most common example of the employment tests that applicants
often undergo is a medical examination. Medical examination, also referred to as preplacement
medical testing, is conducted only where the applicants are required to use physical strength to
successfully perform their duties (Mathis and Jackson, 2006).
2.1.10. Job Offer
The next step in selection process is job offer to those applicants who have crossed all the
previous hurdles. In other words, it is the last step in the selection process. Development of an
offer via e-mail or letter is sometimes a more formal part of this process.

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 2.2. Improving the Effectiveness of Recruitment and Selection
An HRM approach can be adopted to recruitment, which involves taking much more care in
matching people to the requirements of the organization as a whole as well as to the particular
needs of the job. Moreover, these requirements will include commitment and ability to work
effectively as a member of a team. As described by Townley (1989), both followed a conscious
recruitment policy with rigorous selection procedures. Aptitude tests, personality questionnaires
and group exercises were used and the initial pre-screening device was a detailed „bio data‟-type
questionnaire, which enabled the qualifications and work history of candidates to be assessed and
rated systematically. Subsequent testing of those who successfully completed the first stage was
designed to assess individual attitudes as well as aptitude and ability.

The need for a more sophisticated approach to recruitment along these lines is characteristic by
HRM. The first requirement is to take great care in specifying the competences and behavioral
characteristics required of employees. At the very least, structured interviewing techniques should
be adopted. Wherever possible, psychological tests should be used to extend the data obtained
from the interview. Well-planned and administered assessment centers are the best predictors of
success in a job, but they are only practical for a limited number of more complex or demanding
jobs or for selecting graduates and entrants to training programs.

2.3. Staff Recruitment and Selecting Plan

This flow chart is aimed at enabling employers to recruit the right people for the right job. It was
realized that most companies did not have standard procedures it followed in recruiting staff. This
resulted in an inability to recruit the right caliber of personnel, which lead to poor performance,
hence the need for a plan such as a flow chart for staff recruitment and selection plan as shown in

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 Figure 2-2 flow chart of recruitment and selection

Source: Richardson (2012)

According to Jackson et al. (2009), recruitment involves searching for and obtaining qualified
applicants for the organization to consider when filling job openings. The aim of this plan is to
buttress the assertion of Richardson (2012), which states that acquiring high quality staff is critical
to an organization’s success. The proposed plan is in two parts that is the recruitment process and
methods and selection process and methods.

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 Figure 2-3 Recruitment selection plan

Source: Richardson (2012)

The recruitment process, (shown in Figure 2.2-flow chart), is the first process, followed by the
selection process in recruitment and selection which is outlined in Figure 2.3.

2.4. Challenges of Recruitment and Selection

According to Cooper (2003) recruitment and selection of employees is the most important job
of a Human Resource person. Briggs (2007), identified some of the problem affecting
recruitment and selection as, the increasing pressure for employment, utilization of informal
sources of recruitment and delegation of recruitment function. These problems have resulted to
inadequate use of job description and standard employee requirement in the process of
recruitment. Kaplan and Norton (2004), indicates that a common problem in recruitment and
selection is poor Human Resource Planning (HRM). This is particularly so with recruitment

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and selection policies and practices. The key goal of HR planning is to get the right number of
people with the right skills, experience and competencies in the right jobs at the right time at
the right cost. Detailed and robust recruitment and selection policies, such as recruitment and
selection procedures, assessing criteria, talents auditing and processing the information about
the labor market are important in recruiting and deploying appropriate employees at the right
time. Batt (2002), affirms that recruitment and selection experience can also impact on the
likelihood that a candidate will accept a job offer and on their subsequent commitment to
remaining in the organization. Appointment decisions are the most important ones a manager
has to make; they affect the manager’s ability to achieve targets, the quality of services or
products delivered to the customer and the well-being of the whole team. Previous research
shows that the competency level of HR managers has a major influence on recruitment and
selection and experienced HR experts within the HR department will not only shorten vacancy
duration, but also improve the quality of the applicants. Moreover, effective recruitment and
selection is possible only if there is a dedicated and competent HR team (Kaplan and Norton,
2004).

Conducting a thorough job analysis and identifying the right caliber of candidates bring about
a good blend between applicants and the job. Argument has been given that under qualified
employees may not able to effectively perform their job positions due to lack of knowledge and
competencies, while on the other hand over qualified employees tend to experience less job
satisfaction due to their higher qualification than a desired level for a given job. For every job
in the organization as Armstrong (2006), identified, there are stages by which a thorough job
analysis must aim to achieve -defining requirement, preparing job descriptions and
specifications; deciding terms and conditions of employment, attracting candidates, and
reviewing and evaluating alternative sources of applicants inside and outside the organization.
Job analysis process generates information which is converted into tangible outputs of a job
description and a person specification, that is what has to be done and who does it before
recruiting for a new or existing position. It is important to invest time in gathering information
about the nature of the job since it prescribes relevant personal qualities and attitudes as well
as skills and knowledge required for the job (Pilbeam and Corbridge, 2006).

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Organizations in the selection process use methods such as application forms, interviews,
formal tests, references, assessment centers and official transcripts. An organization needs to
choose a method that is most appropriate to the job positions. HR experts generally drive the
staffing process and the purpose of the staffing is to fulfill the requirements of business, and
the skill levels presented by each new recruit is likely to be judged better if the line managers
are involved in the recruitment and selection process. In business strategy implementation, the
involvement of line managers in the entire staffing process (that is, drafting of job descriptions,
setting selection criteria and being on the panel of recruitment) is vital for ensuring recruitment
and selection to meet business needs. In other words, the line managers are the owner of the
recruitment and selection process along with HR playing a facilitator role. (Dess and Jason,
2001).

Organization that are less selective or hire lower-skilled employees are likely to experience
significant effects on productivity, while hiring a mismatched employee can result in poor
performance and higher turnover rates (Batt, 2002). Scholars have argued that other key issues
and controversies run through analyses of human resource management and recruitment and
selection: efficiency, control, and the difficulty of orienting practice towards social justice are
often cited. The first two problematics, as (Burton, 2001) notes, have been central to the
management of people for as long as managers have been present in organizations. The latter
is also common across all organizations, but is a particular academic and policy concern for
smaller or growing organizations (Burton, 2001).

In recruitment and selection practice, the construction of formalized selection frameworks and
norms of acceptable discrimination maybe seen as an attempt to enable managers to navigate
between efficiency, control and social justice. In their advice on how to achieve the perfect fit
of person, organization and job, they argue that selecting on the basis of managerial opinion is
utterly unscientific and unreliable and that managers are liable to be turned this way and that
by the most inconsequential of considerations. In place of this unsatisfactory state of affairs,
these scholars propose that the physical self-provide the key to unlocking the inner secrets of
the individual seeking employment, and therefore should inform the selection process. The
underlying philosophy of this process is that everything about man indicates his character and
as much information as possible should be collected to inform a decision- making.

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 Recruitment may be conducted internally through the promotion and transfer of existing
personnel or through referrals, by current staff members, of friends and family members. Where
internal recruitment is the chosen method of filling vacancies, job openings can be advertised
by job posting, that is, a strategy of placing notices on manual and electronic bulletin boards,
in company newsletters and through office memoranda. Internal recruitment does not always
produce the number or quality of personnel needed. According to McKenna & Beech (2002),
some of the organizations traditionally taken the employees from education institutions have
operated many processes to recruit the young people, who are in their final year or just
completed their studies. In such an instance, the organization needs to recruit from external
sources, either by encouraging employee referrals; radio advert, TV advert, newspaper advert,
professional association, employment agents, door to door, telephone, recruitment from school,
job fairs, talent hunt, job proofing, initial job offer and the use of labor office.

2.5. 2.7 The Relationship between Recruitment and Selection, and Organizational
Performance.
The effective recruitment and selection of employees is a fundamental HRM activity, one that if
managed well can have a significant impact on organizational performance as well as lead to a
more positive organizational image, recruitment and Selection are vital processes for a successful
organization, having the right staff can improve and sustain organizational performance. Also,
effective recruitment and selection is central and crucial to the successful functioning of the
organization as it depends on finding people with the necessary skills, expertise and qualifications
to deliver the organization’s strategic objectives and the ability to make a positive contribution to
the values and aims of the organization, Sisson (1994).

on the other hand, better recruitment and selection strategies result in improved organizational
outcomes. The more effectively organizations recruit and select candidates, the more likely they
are to hire and retain satisfied employees. In addition, the effectiveness of an organization’s
selection system can influence bottom-line business outcomes, such as productivity and financial
performance. Hence, investing in the development of a comprehensive and valid selection system
is money well spent Hall and Torrington (l998).

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Recruitment, as a human resource management function, is one of the activities that impact most
critically on the performance of an organization. Recruitment and selection also has an important
role to play in ensuring worker performance and positive organizational outcomes. It is often
claimed that selection of workers occurs not just to replace departing employees or add to a
workforce but rather aims to put in place workers who can perform at a high level and demonstrate
commitment.

Recruitment and selection play a pivotally important role in shaping an organization’s

effectiveness and performance, if work organizations are able to acquire workers who already
possess relevant knowledge, skills and aptitudes and are also able to make an accurate prediction
regarding their future abilities, recruiting and selecting staff in an effective manner can both avoid
undesirable costs for example those associated with high staff turnover, poor performance and
dissatisfied customers and engender a mutually beneficial employment relationship characterized,
wherever possible, by high commitment on both sides. Pilbeam and Corbridge, (2006) provide a
useful overview of potential positive and negative aspects noting that: The recruitment and
selection of employees is fundamental to the functioning of an organization, and there are
compelling reasons for getting it right. Inappropriate selection decisions reduce organizational
effectiveness, invalidate reward and development strategies, are frequently unfair on the
individual-recruit and can be distressing for managers who have to deal with unsuitable
employees. ‟ Recruiting and selection is very important for the survival of every organization but
that does not end there, new recruits need to be developed and appraised from time to time in
order for them to be abreast with new trends and challenges. When employees are developed it
help increase their performance and help sustain the growth of organizations.

2.6. Empirical framework

 Jonathan, Moses and Willis (2012) studied recruitment and selection on the performance
of SMEs in Kisumu Municipality, Kenya. Kenya has 1.6 million SMEs, constituting 96%
of business enterprises, employing 75% of the labour force and contributing 20% to
GDP. But their performance has been poor in the last decade. The study found that the

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 overall average performance of SMEs in Kisumu Municipality was 60.71%. There was
a significant positive correlation between recruitment and selection, and performance of
SMEs at α = .01. The average performance of SMEs with good recruitment and selection
was 81.90%; with moderate was 67.94%, with poor was 53.90%. Recruitment and
selection account for 40.8% of the total variance in the performance of SMEs. The study
concludes that recruitment and selection have a significant on the performance of SMEs
in Kisumu Municipality. However, it did not look internal recruitment, external
recruitment and selection as an independent variable.

 Enguday (2017) carried out a study on the effect of internal recruitment practice on job
satisfaction. From the analysis the coefficient of determination (the adjusted r square), =
0.394. This figure tells that employee satisfaction is considerably impacted by The
Internal Recruitment and Selection practice at CBE. This is to say that 39.4% of the
employee satisfaction is resulted from their view/perception (which said to form the
beholders reality) of the Internal Recruitment and Selection practice at the bank.
However, the study only focuses on the effect of internal recruitment on job satisfaction
which did not show the direct relationship between the effect of internal recruitment on
organizational performance.

 Ekwoaba, J.O., Ikeijie, U.O, Uforma, N (2015) carried out a study on the effect of
recruitment and selection criteria on organizational performance. The study was carried
out in Lagos using Fidelity bank Plc. The analysis of 130 valid responses obtained
through a questionnaire administered to randomly selected respondents revealed that
recruitment and selection criteria have significant on organization’s performances. Also,
the more objective the recruitment and selection criteria are the better the organization
performance. However, it lacks considering internal recruitment, external recruitment
and selection as an independent variable and each independent variable significance on
organizational performance which is the dependent variables.

2.7. Conceptual Framework

Recruitment and selection is characterized finally by potential difficulties and it is necessary to
keep abreast of developments in research in this field. One of the assets of every organization

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 is its employees. To engage and employee’s services the employer needs to undertake
recruitment by creating a pool of applicants, which mainly leads to the selection of qualified
people to work in the organization. Recruitment and selection also has an important role to play
in ensuring worker performance and positive organizational outcomes. Two main sources of
recruitment were identified - internal and external source of recruitment. The components of
internal source of recruitment consists of transfers, promotions, job positing and job bidding.

Conceptual Diagram of Recruitment and Selection

Figure 2-4 Conceptual framework

Source: Researcher

Whilst the external source of recruitment is advertisement, e-recruitment, employee referrals,

employment agencies, labor office and educational and training establishment. Selection process
followed recruitment which entails, initial screening, interview, selection test, job offer that mostly
leads to organizational performance. The conceptual framework explaining recruitment and
selection practices in organization as shown in Figure 2.4.

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Performance is a multi-dimensional construct, the measurement of which varies depending on a
variety of factors. It is important to determine whether the measurement objective is to assess
performance outcomes or behavior.
Latham, Sulsky and Macdonald (2007) emphasize that an appropriate definition of performance is
a prerequisite for feedback and goal setting processes. They state that a performance theory is
needed that stipulates:
o The relevant performance dimensions;
o The performance standards or expectations associated with different performance levels;
o How situational constraints should be weighed (if at all) when evaluating performance;
o The number of performance levels or gradients;
o The extent to which performance should be based on absolute or comparative standards.

There are different views on what performance is. It can be regarded as simply the record of
outcomes achieved. On an individual basis, it can be a record of the person’s accomplishments.
Performance is something that the person leaves behind and that exists apart from the purpose.
Performance could be defined as the outcomes of work because they provide the strongest linkage
to the strategic goals of the organization, customer satisfaction, and economic contributions. Also,
performance is about outcomes but the concept is linked to the idea of a balanced scorecard.
Fletcher (2001) mentions, contextual performance deals with attributes that go beyond task
competence and that foster behavior’s that enhance the climate and effectiveness of the
organization.

The Oxford English Dictionary defines performance as: „The accomplishment, execution, carrying
out, working out of anything ordered or undertaken This refers to outputs/outcomes
(accomplishment) but also states that performance is about doing the work as well as being about
the results achieved. Performance could therefore be regarded as behavior - the way in which
organizations, teams and individuals get work done.

Performance is behavior and should be distinguished from the outcomes because they can be
contaminated by systems factors. A more comprehensive view of performance is achieved if it is
defined as embracing both behavior and outcomes.

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Performance means both behavior’s and results. Behaviors emanate from the performer and
transform performance from abstraction to action. Not just the Instruments for results, behaviors
are also outcomes in their own right -the product of mental and physical effort applied to tasks -
and can be judged apart from results.

This definition of performance leads to the conclusion that when managing the performance of
teams and individuals both inputs (behavior) and outputs (results) need to be considered.

This is the mixed model of performance management that covers competency levels and
achievements as Well as objective setting and review. And it is this model that research (Armstrong
and Baron, 2004) has shown to be the one that is now interesting many organizations. Performance
can be said to be more concerned with measuring performance. Performance is the behavior or
action relevant to the attainment of the organization’s goals that can be scaled, that is, measured.

2.8. Organizational Performance

Organizational performance can be defined as a strategic and integrated approach to delivering
sustained success to the organizations by improving the performance of the people who work in
them and by developing the capabilities of teams and individual contributors (Armstrong and
Baron, 2004).

2.8.1. Purpose of performance management

Performance management is a means of getting better results from the organization, teams and
individuals by understanding and managing performance within an agreed framework at planned
goals standards and competence requirements. It is a process for establishing and developing, and
an approach to managing and developing people in a way that increases the probability that it will
be achieved in the short and longer term. It is owned and driven by line management.

2.8.2. Underpinning Theories

The following three theories underpinning performance management have been identified by
Buchner (2007).

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 2.8.3. Goal Theory
Goal theory as developed by Latham and Locke (2006) highlights four mechanisms that connect
goals to performance outcomes:
1. They direct attention to priorities,
2. They stimulate effort,
3. They challenge people to bring their knowledge and skills to bear to increase their
chances of success; and
4. The more challenging the goal, the more people will draw on their full repertoire of
skills.
This theory underpins the emphasis in performance management on setting and agreeing
objectives against which performance can be measured and managed. Goals inform individuals to
achieve particular levels of performance, in order for them to direct and evaluate their actions;
while performance feedback allows the individual to track how well he or she has been doing in
relation to the goal so that, if necessary, adjustments in effort, direction or possibly task strategies
can be made. Goal theory supports the agreement of objectives, feedback and review aspects of
performance management.

2.8.4. Control Theory

Control theory focuses attention on feedback as a means of shaping behavior. As people receive
feedback on their behavior, they appreciate the discrepancy between what they are doing and what
they are expected to do and take corrective action to overcome it. Feedback is recognized as a
crucial part of performance management processes.

2.8.5. Social Cognitive Theory

It is based on his central concept of self-efficacy. This suggests that what people believe that they
can or cannot do powerfully impacts on their performance. Developing and strengthening positive
self-belief in employees is therefore an important performance management objective.

2.9. Summary of Literature

The main intention of this chapter was to explain the theory of recruitment and selection. Through
the research, it became evident that there is an abundance of research on recruitment and selection
processes, mainly on how they are undertaken in organizations. In this chapter, the study revealed
recruitment definitions by different authors. Internal, external sources of recruitment and selection

32 | P a g e
were identified. Selection process used to fish out qualified employees who possess the required
abilities, skills and behaviors was detailed explained. The study also revealed challenges during
recruitment and selection by organizations and the effect of recruitment and selection practices on
organizational performance. Improving the effectiveness of recruitment and selection was briefly
discussed.

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 CHAPTER THREE
3. RESEARCH METHODOLOGY
This chapter explains how the research is conducted. It starts with a brief definition of research,
the research design, strategy, then followed by the method and procedures that is used in collecting
data, the population, sampling size and sampling technique, data collection and data analysis.

Research is something that people undertake in order to find out things in a systematic manner,
thereby increasing their knowledge. It is noted that this definition captures two significant phrases:
“systematic way” and “to find out things”. “Systematic” suggest that research is based on logical
relationships and not just beliefs (Saunders and Thornhill, 2009). It portrays the exact idea the
researcher is carrying out (William, 2001). “To find out things” suggests that, there are multiple
possibilities or purposes for your research. These may include describing, explaining,
understanding, criticizing, and analyzing. Research methodology can be described as the
framework associated with a particular set of assumptions that can be used to conduct research
(O‟Leary, 2004). Research methodology also involves considering the methods of data collection
and the theories and concepts underpinning the research topic.

3.1. Research Design

Research design is blueprint for fulfilling research objectives and answering research questions. It
is the general plan of how the research questions would be answered and it is the conceptual
structure with which research is conducted (Saunders et al., 2007). In other words, it is a master
plan specifying the methods and procedures for collecting and analyzing the needed information.
It ensures that the study is relevant to the problem and that it uses economical procedures. The
types of research design, namely exploratory (emphasizes discovery of ideas and insights),
descriptive (concerned with determining the mean and standard deviation with which an event
occurs or relationship between variables) and explanatory (concerned with determining the cause
and effect relationships).

According to Kothari (1990), descriptive research design is employed for detail description of the
findings that going to displayed in tables, charts and determining the mean and standard deviation
with which an event occurs or relationship between variables while explanatory research design,

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to explain ,understand, predict and control the cause and effect relationships between the effect of
recruitment and selection on organizational performance.

Therefore, the researcher employed both descriptive and explanatory design in the analyzing of
independent and dependent variables about the effect of recruitment and selection on
organizational performance. The data obtained from 377 sample employees who are working in 4
districts and head office in commercial Bank of Ethiopia.

3.2. Research Approach

The research is based on the effect of recruitment and selection on organizational performance in
the case of Commercial Bank of Ethiopia. Quantitative and qualitative analysis used as the research
strategy to achieve the research aim of investigating into the effect of recruitment and selection
adopted by these firm.

3.2.1. Quantitative Research

“Quantitative research allows the researcher to familiarize him/herself with the problem or concept
to be studied, and perhaps generate hypotheses to be tested.” (Golafshani; 2003) Quantitative
research seeks to quantify the collected data for analyzing, and find a final course of the action. It
is based on statistics; the objects are large number of respondents and it is structured. In the thesis
quantitative method is used to gather the information from the employees about the effect of
recruitment and selection on organizational performance. With the help of quantitative research
method, it is easy to have a clear and scientific view on the opinions by having them on
questionnaires and analyze with the help of SPSS, and to interview one or some of the employees
about their thoughts does not present all employees opinions; moreover, it is not possible to
interview every employee individually.
3.2.2. Qualitative Research
Burns and Grove (2003) describe a qualitative approach as “a systematic subjective approach is
used to describe life experiences and situations to give them meaning”. Parahoo (1997) states that
qualitative research focuses on the experiences of people as well as stressing uniqueness of the
individual. Holloway and Wheeler (2002) refer to qualitative research as “a form of social enquiry
that focuses on the way people interpret and make sense of their experience and the world in which

35 | P a g e
they live”. Researcher use the qualitative approach to explore the behavior, perspectives,
experiences and feelings of people and emphasize the understanding of these elements.

This study focuses on the effect of recruitment and selection on organizational performance in the
case of Commercial Bank of Ethiopia. The research approach is assumed to be qualitative as well
as quantitative type which is mixed approach.

3.3. Population, sampling size and Sampling procedure

3.3.1. Target Population

The term population refers to the entire group of individuals, objects or event having common
observable characteristics in which the research is interested in studying. According to Doku (2011),
population of a study constitutes all individual items or organization whose contribution is primarily
providing relevant information to the research.

Therefore, as per CBE data base half year report as of December 31, 2019, CBE has 37,847 employees
who are working in 1,456 branches which managed by 15 districts all over Ethiopia. So, the target
population for the study consisted of 15,947 employees, who work at Head Office and Four Addis
Ababa area districts (North Addis Ababa District, South Addis Ababa District, West Addis Ababa
District and East Addis Ababa District). According to the Bank’s Job classification of clerical
employees.
3.3.2. Sampling size
The researcher tried to calculate the sample size after determining the target population. In addition
to population, purpose of the research, population size, the level of precision or sampling error,
the level of confidence or risk level and the degree of variability or the distribution of attributes in
the population determine the appropriateness of the sample size (Miaoulis & Michener, 1976).
Therefore, the sample size is determined by using Yamane (1967), sample size determination
formula, He recognized that if the target population is large the sampling method with an error of
5% in which the true value of the population estimated and confidence coefficient of 95% in which
95 out of 100 sample have the true population value within the range of precision. As the result,
the researcher has determined the total sample size as follows.
𝑁 15947
n=1+𝑁(𝑒)2 =
1+15947(0.05)2
= 390

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 n=390
Where;
n is the sample size,
N is the target population size, and
e is 5% the level of precision.
95% confidence level
Table 3 1 Total Number of Target population

SN Branch/Process Sample Population Taken

1 Selase Branch 15
2 Arat Kilo Branch 16
3 Arada Ghiorgis Branch 17
4 Mehal Ketema Branch 15
5 Ethioa China Road Branch 12
6 Adwa Park Branch 16
7 Geazahegn Yilma Branch 18
8 Senga Tera Branch 14
9 Gofa Mazoria Branch 10
10 Bomb Tera Branch 18
11 Berbere Berenda Branch 15
12 Addisu Michael Branch 14
13 Kara Kore Branch 8
14 Geja Sefer Branch 27
15 EAAD office 22
16 NAAD office 25
17 SAAD office 27
18 WAAD office 32

19 Talent Acquisition process 12

20 PM process 10
21 HR Transaction mgt 10
22 HR partnering 10
23 Training & Development 8
24 Fraud Investigation team 5

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 25 District support team 5
26 Training Operation 9
Total 390
Source: researcher
3.3.3. Sampling Procedure
Sampling is the process of selecting observations (Babbie, 2008). The two types of sampling are
probability and non-probability sampling. The simple random sampling technique under the
probability sampling is used to select respondents from the employees with the exception of the Human
Resource Department. This is because the population have an equal chance of being selected.
Significantly, the purposive sampling technique, which is a non-probability sampling technique is used
to select respondents who deal directly with recruitment and selection from the Human Resource
Department. This is because the researcher wants to deal with only typical cases based on the objectives
of the study.

3.4. Data Sources and Data Collection Method

3.4.1. Data Sources
Both primary and secondary data is used to complete the information needed.
 The primary data is obtained using the survey method. These include the distribution of
questionnaires and collection of data from key respondents and HR professionals
pertaining to the commercial bank of Ethiopia. In order to achieve the aim and objectives
of the study well designed questionnaire with both close-ended and open-ended questions
is formulated to gather information from appropriate respondents.
 Secondary data is data collected by someone other than the user. A clear benefit of using
secondary data is that much of the background work needed has already been carried out
or analyzed (Funsho, 2012). Because the data already exist, you can evaluate them prior
before using it. These include policy documents, newspapers, website, journals, articles,
reports, bulletins, newsletters. The secondary source is to get a deeper understanding of
published information on worker recruitment and selection within commercial bank of
Ethiopia.

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 3.4.2. Methods of data collection
The data collection is a very critical aspect for acquiring all the necessary data to properly conduct
this type of research. The data have been collected by using two sources; the primary and
secondary data sources.

Primary data: primary data are helpful to get original information from the respondents
themselves to know their opinions, feelings, attitudes and perceptions towards a particular issue.
Furthermore, to collect the primary data the study used proper instruments like questionnaire.

Questionnaire is a printed list of questions that respondents are asked to answer and distributed
to sample respondents of CBE doesn’t require face to face contact. This questionnaire can be in
the form of closed ended or open-ended questionnaires. The former shows there are limited options
provided by the researcher in which respondents select one of them when it is appropriate to them
but they cannot write any answers in a statement form rather than encircling one of the available
options on the questionnaire. Moreover, the closed-ended questionnaire is used rating type of
questions in which a rating device is used to record responses. Rating questions are often used to
collect opinion data and most frequently used Likert-style rating scale in which the respondent is
asked how strongly she\he agrees or disagrees with a statement or series of statements, usually on
a four, five, six, or seven-point rating scale (Saunders et al, 2007).

The latter is characterized by giving chances to respondents to explain their reactions, feelings,
experiences, etc. in a statement from using the space provided on the questionnaire. This study
distributed both closed and open-ended questionnaires to the sample respondents.

Secondary data: such type of data involves different sorted data made, adjusted and filed by a
third party and hence secondary. This study used books, website, reputable journals which are
listed under the bibliographic heading and important documents of the bank like magazines,
brochures and reports.

3.5. Data analysis method

The data is analyzed using the Statistical Package for Social Science (SPSS) for the quantitative
analyses. First, this study examined descriptive statistics for the general information and for the
overall knowledge about recruitment and selection practice of respondents. Second, the study

39 | P a g e
employed Pearson product moment correlation and regression analyses to check simple and causal
relationship between the variables. However, for the qualitative analyses simply narrative analysis
is used.

3.5.1. Statistical Methods

For the purposes of testing the research hypotheses, a number of statistical techniques were
employed. These include both descriptive and inferential statistical techniques.

3.5.2. Descriptive statistics

Descriptive statistics describe the phenomena of interest (Sekaran, 2003) and is used to analyze
data for classifying and summarizing numerical data. It includes the analysis of data using
frequencies, dispersions of dependent and independent variables and measures of central tendency
and variability and to obtain a feel for the data (Sekaran, 2003). The mean and standard deviation
is used to describe the data obtained from the independent variables and the dependent variable.
The results of the general information are based on the frequencies and percentages obtained from
the sample respondents’ characteristics.

3.5.3. Inferential statistics

Inferential statistics allow the researcher to present the data obtained in research in statistical
format to facilitate the identification of important patterns and to make data analysis more
meaningful. According to Sekaran (2003), inferential statistics is employed when generalizations
from a sample to population are made. The statistical methods used in this research include the
Pearson Product Moment Correlation as well as regression analyses.

3.5.4. The Pearson Product Moment Correlation

For the purposes of determining whether a statistically significant relationship exists between
recruitment and selection and organizational performance, the Pearson Product Moment
Correlation Coefficient is used. It provides an index of the strength, magnitude and direction of
the relationship between variables (Sekaran, 2003).
3.5.5. Regression analyses
Regression is a statistical technique that is used for studying the relationship between the
dependent variable and independent variable (s). It provides a method to predict the changes in the

40 | P a g e
dependent variable in response to changes in either a single or more than one independent variable.
Hence, it allows the researcher to determine the relative importance of each predictor as well as to
ascertain the contribution of the independent variables (Sekaran, 2003). Therefore, in this study
recruitment and selection is the independent variables and organizational performance is the
dependent variable.

3.6. Validity and Reliability

The analysis of data would be sufficiently adequate to reveal its significance and the methods of
analysis used should be appropriate. The validity and reliability of the data is checked carefully.
Validity and reliability of scores on instruments, additional standards for making knowledge
claims, lead to meaningful interpretations of data.

3.6.1. Validity
Validity refers to the extent to which an instrument measures what is supposed to measure. Data need
not only to be reliable but also true and accurate. If a measurement is valid, it is also reliable (Joppe
2000). In order to ensure the quality of this research content validity of the research instrument is
checked. The content validity is verified by the advisor of this research, who looks into the
appropriateness of questions and the scales of measurement. Peer discussion with other researchers
also were conducted since it is another way of checking the appropriateness of questions.
Moreover, this is done to find out whether the developed instruments measures what it is meant to
measure and also to check the clarity, length, structure and wording of the questions. This test
helps the researcher to get valuable comments to modify some questions.

3.6.2. Reliability
Reliability has to do with the accuracy and precision of a measurement procedure. So that copies
of the questionnaire are distributed to twenty respondents as a pilot test who are not participate in
the main research. Cronbach alpha is a coefficient of reliability. It is commonly used as a measure
of the internal consistency or reliability of the instrument. According to statistical interpretation,
the closer the reading of Cronbach Alpha to digit 1, the higher the reliability is in internal
consistency. In general, reliabilities less than 0.60 are considered to be poor, those in the 0.70 range
are acceptable and those over 0.80 are good. (Hence Cronbach’s Alpha is utilized and calculated
to test the accuracy or dependability or, as we usually call it, reliability of the research instrument.

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Table 3.1 Reliability Statistics
Cronbach's
Variables Alpha N of Items
Internal Recruitment 0.872 5
External Recruitment 0.951 8
Selection 0.734 15
Organizational Performance 0.701 9
Over all variables 0.814 37
Source: Sample survey (2020)

The research Questioners were developed from related studies and conceptualizing based on
research questions and objectives, and hence the questioners are consistent with the objective of
the study and are also reliable.

3.7. Ethical Consideration

It is necessary to look at the ethical implications of what a researcher is proposing to do. Most
ethical issues fall in to one of four categories: protection from harm, informed consent, right to
privacy, and honesty with professional colleagues (Paul D. Leedy & Jeanne Ellis Ormrod, 2005.)
Therefore, taking the nature of this study under consideration, participants have been told the
nature of the study to be conducted and given the choice of either participating or not participating
because any participation should be strictly voluntary. More specifically, for ethical clearance the
study confirmed containing the following information:
 A brief description of the nature of the study
 A description of what participation involve, in terms of activities and duration
 The guarantee that all response remains confidential and anonymous as a result respondent
are not asked to write their names, their telephone numbers and their specific address so
that their private secrets never been disclosed.
 The researcher reports the findings in a complete and honest fashion and give appropriate
credit where credit is due and acknowledge any indebtedness to others.

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 CHAPTER FOUR
4. DATA PRESENTATION AND ANALYSIS
This section deals with the analysis and interpretation of data collected to determine the effects of
recruitment and selection on organizational performance. Therefore, this chapter would present a
discussion of the final results and the process through which the results were obtained. The
statistical methods of analysis, which included a descriptive analysis such as means and standard
deviation beside percentage and frequencies also used when it is necessary and the inferential
statistics (correlation and regression analysis) is used.

The statistical analysis was made through statistical package for social science (SPSS version of
24.0) to analyze the relation between independent and dependent variables. For the purpose of the
study multiple linear regression models was also employed. Tables and charts were also being
used to ensure easily understanding of the analysis.

The sample size of the research was 390. However, the researcher estimates that there would be a
probability that participants may not respond since most questionaries’ are distributed through
email due to the pandemic disease COVID-19 and believe the reliability would be decreased. As
a result, the researcher decides to distribute more than the sample size which is a total of 400
questionnaires were distributed to the sampled managerial and professional respondents during the
month of April and May, 2020 for CBE Addis Ababa districts. The proportion of the questioners
were distributed to CBE branches were 215. The name of the branches are Selase, Arat Killo,
Arada Ghiorgis, Mehal Ketema, Gezahegn Yilma, Senga Tera, Ethio China Road Branch, Adwa
Park Branch, Gofa Mazoria Branch, Bom Tera Branch, Berbere Berenda Branch, Addisu Michael
Branch, Kara Kore Branch, Geja Sefer Branch, Beside 185 questionnaires also distributed to East
Addis Ababa District office, North Addis Ababa District office, South Addis Ababa District office
West Addis Ababa District Office, Head Office Talent acquisition team, Performance
Management team, HR shared service team, HR partnering team, training and development team,
Fraud Investigation team, District support team and Training Operation team among 400
questionnaires 377 questionnaires are returned which is above the sample size.

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 4.1. Respondents’ Demographic Description:
Table (4-1) below shows the general characteristics of the respondents in terms of gender, age,
education, years of experience in the company and Job category.

Table 4- 1 Demographic Characteristics of respondents

Gender
Frequency Percent
Male 219 58.1
Women 158 41.9
Total 377 100.0

Age
Frequency Percent
20 and below 1 0.3
21-29 194 51.5
30-39 124 32.9
40-49 52 13.8
50 and above 6 1.6
Total 377 100.0

Educational Background
Frequency Percent
Diploma 6 1.6
First Degree 250 66.3
Second Degree and above 121 32.1

Total 377 100.0

Work Experience
Frequency Percent
1-5 140 37.1
6-10 153 40.6
11-15 67 17.8
16 and above 17 4.5
Total 377 100.0

Job Category
Frequency Percent
Professional 272 72.1
Managerial 105 27.9
Total 377 100.0

Source: Researcher’s field survey 2020

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Gender: with a total of 377. Most of the respondents are males with 219 (58.1%) while females
rated 158 (41.9%). This indicates that most of the employees that worked in CBE are males.

Age: The highest percentage of the respondents’ ages were less than 30 years with total number of
195 (51.8%), then 30 years to 40 years with a total of 124 (32.9%), then ages from 40 years to 50
years with a total number of 52 (13.8%), and ages above 50 were 46 (1. 6%).This indicates that
the average of ages of the employees are between 20 years to less than 30 years which is CBE is
filled with young and energetic man power.

Educational level: Most of the respondents were holding first degree with a total number of 250
(66.3%), the master or second degree and above 121 (32.1%), employees with a diploma were a
total number of 6 (1.6%). Majority of respondents have minimum first degree which is CBE man
power is filled with educated human resource.

Work Experiences: The majority of the respondents’ experiences in the company ranged between
6-10 years with a total number of employees 153 (40.6%), then less than 5 years with a total
number of 140 (37.1%), then on the range of 11-15 years of experiences in the company with a
total number of 67 (17.8%), finally above 16 years are 17 (4.5%). Majority of respondent’s
experience fail below 10 years which is CBE employees have enough experience and there is wide
pool of succession for next higher position if and only if the bank can retain the employees.

Job Category: Most of the respondents’ work in professional area with a total number of 272
(72.1%), then with a total number of 105 (27.9%) are those who are at managerial category. It
implies the study compromise both professional and managerial job category.

4.2. Normality Test:

A normality test is used to determine whether sample data has been drawn from a normally
distributed population (within some tolerance). The researcher conducted the Skewness and
Kurtosis test. Skewness is a measure of symmetry, or more precisely, the lack of symmetry. A
collected data is symmetric if it looks the same to the left and right of the center point. Furthermore,

45 | P a g e
 Kurtosis is a measure of whether the data are heavy-tailed or light-tailed relative to a normal
distribution. (West et al., 1995).

According to Sekaran, (2003), if the value of Skewness is less than 1 and the value of Kurtosis is
less than 7, then it indicates that the sample of this study represents the study population and the
results could be generalized to CBE context.

Skewness and Kurtosis test are used to test the normality of the data. Following table shows that
Skewness results ranged between (-0.235 to -0.165) whereas Kurtosis results ranged between
(-1.132 to -0.252). As shown in table 4.2. so that the data collected is normally distributed and was
used to conduct this study.

Table 4- 2 Normality distribution of study variables

Normality Distribution Statistics

N
Std. Std. Error of Std. Error of
Valid Missing Mean Deviation Skewness Skewness Kurtosis Kurtosis
Internal Recruitment 377 0 3.431299735 .8048897490 -.235 .126 -.434 .251

External Recruitment 377 0 3.25531 .446308 .086 .126 -.252 .251

Selection 377 0 3.742137173 .7326818180 -.002 .126 -.974 .251

Organizational 377 0 3.089596228 .8010464150 .165 .126 -1.132 .251

Performance

Source: Researcher’s field survey 2020

4.3. Descriptive Analysis of Study Variables:

4.3.1. Independent variable

The First Dimension: Internal Source of recruitment:

The researcher extracted arithmetic mean and standard deviation of the sample described Answers
about the paragraphs below, as shown in table 4-.3.

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So that Mean score < 3.39 was considered as low, the mean score from 3.40 - 3.79 was considered
as moderate and mean score > 3.8 was considers as high as illustrated by comparison bases of
mean of score of five-point Likert scale instrument (Zaidaton & Bagheri, 2009).

Table 4- 3 Response on internal recruitment of the bank.

The Human
Resource
The internal Department
CBE uses have pre- Internal source of
CBE uses
transfer in requisite recruitment
promotion in
order to fill knowledge affects
order to fill
source of vacant while organizational
openings
recruitment of posts Recruiting and performance
the bank is Selecting new
rational, internal source
acceptable and of applicants
fair.

Valid 374 377 377 359 377

N
Missing 3 0 0 18 0
Mean 2.18 4.32 3.73 3.03 4.06
Std. Deviation 1.765 1.31 1.714 1.835 1.595
92/ 267/ 232/ 154/ 271/
Strongly Agree
67.4% 70.8% 61.5% 40.8% 71.9%
23/ 56/ 16/ 17/ 14/
Agree
6.1% 14.9% 4.2% 4.5% 3.7%
Frequency/ 2/ 2/ 2/
Neutral 0 0
percentage 0.5% 0.5% 0.5%
5/ 14/ 49/ 57/ 25/
Disagree
1.3% 3.7% 13% 15.1% 6.6%
254/ 40/ 78/ 129 65/
Strongly Disagree
67.4% 10.6% 20.7% /34.2 17.2%
Relative Importance Low High Moderate Low High

Source: Researcher’s field survey 2020

As it is seen from table 4-3, shows that the arithmetic means 2.18 with 1.765 Std. deviation on
the internal source of recruitment of the bank is rational, acceptable and fair which implies the
internal source of recruitment of the bank is not acceptable, rational and fair.

Regarding CBE means of internal recruitment CBE practice transfer in order to fill vacant posts
and openings with arithmetic mean of 4.32 with Std. Deviation of 1.310 respectively. This
implicate that CBE practice internal source of recruitment among different source CBE usually
practice transfer in order fill vacant posts.

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The above table also shows on CBE practice Promotion in order to fill opening respondents shows
their moderate level of agreement with arithmetic mean of 3.73 alongside the standardize
deviation of 1.714. which implies that CBE practice promotion in order to fill openings.

The Human Resource Department have pre-requisite knowledge while Recruiting and Selecting
internal applicants. Hence, respondents show low level of agreement with arithmetic mean of 3.03
and Std. Deviation of 1.835. It indicates that HR department don’t have the pre-requisite
knowledge while recruiting and selecting internally.

Respondents show the high relative importance of Internal source of recruitment affects
organizational performance with arithmetic mean 4.06 and 1.595 Std. Deviation. So, it implies
that internal recruitment and selection affects organizational performance of CBE.

Additionally, Enguday (2017), reveal that Promotion and transfers are major ways through which
vacant positions are filled internally. Internal sourcing as a priority in recruitment and selection has to
be further strengthened as a good practice.

The second-dimension external source of recruitment: Employees of any organization can be

employed through many ways. Regarding this respondent were asked how CBE use external
source of recruitment. Accordingly, their response is depicted in the table below.

Table 4- 4 Response on external recruitment of the bank

External N Frequency/Percentage
Std.
source of Mean Strongly Strongly
Deviation
recruitment Valid Missing Disagree
Disagree Neutral Agree
Agree
CBE usually 10/ 44/ 2/ 70/ 251/
practice 2.7% 11.7% 0.5% 18.6% 66.6%
377 0 4.35 1.122
Advertisement
method
CBE practice 0 5/ 3/ 37/ 332/
E- 1.3% 0.8% 9.8% 88.1
377 0 4.85 0.476
Recruitment
method mostly
Often CBE 111/ 69/ 2/ 18/ 177/
use Employee 29.4% 18.3 0.5% 4.8 46.9
377 0 3.21 1.802
referral
method

48 | P a g e
 CBE uses Job 246/ 105/ 0 8/ 11/
walk-in 370 7 1.47 0.859 65.3 27.9% 2.1% 2.9%
method.
CBE practice 225/ 63/ 24/ 59/
Labor office 371 6 2 1.517 59.7% 16.7% 0 6.4% 15.6%
methods.
CBE uses 61/ 27/ 12/ 276
Employment 376 1 4.1 1.574 16.2% 7.2% 0 3.2% 73.2%
Agencies
CBE practice 287/ 56/ 3/0.8% 12/ 14/
Education and 76.1% 14.9% 3.7% 3.7%
training 372 5 1.41 0.952
establishment
frequently.
External 12/ 12/ 50/ 303/
source of 3.2% 3.2% 13.3% 80.4
recruitment
377 0 4.64 0.897 0
affects
organizational
performance

Source: Researcher’s field survey 2020

The above table revealed that respondents show their level of agreement on CBE practice Advertisement,
E-Recruitment and employment agencies with arithmetic mean of 4.35, 4.85 and 4.10 alongside Std.
Deviation of 1.122, .476 and 1.574 respectively which is the high level of agreement while those who
believe CBE use employee referral recruitment method fall on medium with arithmetic mean of 3.21 and
Std. Deviation 1.802. However, regarding with CBE practice Job walk-ins, Labor Office and Education and
training establishment method fall on low level with arithmetic mean of 1.47, 2.00 and 1.41 alongside Std.
Deviation of .859, 1.517 and .952. In addition, most respondents have agreed on high level that external
recruitment affects organizational performance with arithmetic mean of 4.64 alongside Std. Deviation .897

The table demonstrate that CBE have a poor practice Labor office, job walk-ins and education and training
establishment method. Which leads the organization to lose capable employees who have a probability
come through this method.

On the other side the above analysis refers to us that CBE usually practice E-recruitment,
advertisement and employment agencies. This also confirmed through interview which the
researcher made with District HR business partnering and Talent acquisition manager that CBE
uses E-recruitment for internal and external recruitment whereas advertisement and E-recruitment
is for only external recruitment this is made in order to address capable applicants’ all over the
country who have an internet access and for those who don’t have. Beside employment agencies

49 | P a g e
is usually practice for service workers like janitor, guards, messengers, searchers and other non-
clerical job categories.

According to Murat (2019) advertisement, employment agencies, educational institutions, and

professional associations as sources of external recruitment in Diamond Bank Plc in Abuja are
acceptable but in ranking employment agencies was the 1st, advertisement was the 2nd,
educational institution was third and lastly was Professional associations. This means that
Diamond bank plc mainly uses employment agencies to recruit their staff and hardly used
professional associations.

The third dimension: respondents also asked to explain their level of agreement on selection
practice of the organization.
Table 4- 5 Response on selection practice of the bank.

N Frequency/Percentage
Std.
Selection Statistics Mean
Deviation
Strongly Strongly
Valid Missing Disagree Neutral Agree
Disagree Agree
CBE have recruitment and 14/ 10/ 2/ 40/ 310/
376 1 4.65 0.919
selection policy 3.7% 2.7% 0.5% 10.6% 82.2%
Selection system selects those
having the desired 160/ 64/ 2/ 16/ 135/
377 0 2.74 1.812
knowledge, skills and 42.4% 17% 0.5% 4.2% 35.8%
attitude.
There is formal
induction/orientation/
Familiarization process 14/ 8/ 2/ 60/ 293/
377 0 4.62 0.907
designed to help new recruits 3.7% 2.1% 0.5% 15.9% 77.7%
to understand the
organization.
In CBE line managers and
13/ 7/ 2/ 55/ 300/
HR managers participate in 377 0 4.65 0.875
3.4% 1.9% 0.5% 14.6% 79.6%
the selection process.
Selection affects 4/ 2/ 41/ 330/
377 0 4.83 0.547 0
organizational performance. 1.1% 0.5% 10.95 87.5%
CBE have a dedicated and 176/ 74/ 1/ 16/ 106/
373 4 2.47 1.73
competent HR team 46.7% 19.6% 0.35% 4.2% 28.1%
There is a biasness in selection 150/ 71/ 1/ 27/ 128/
377 0 2.77 1.779
at CBE 39.8% 18.8% 0.35% 7.2% 34%

Wrong Selection leads to

De-motivating the rest of the 12/ 7/ 2/ 53/ 303/
377 0 4.67 0.853
work force 3.2% 1.9% 0.5% 14.1% 80.4%
53/ 24/ 9/ 291/
Cost of Rehiring 377 0 4.22 1.499 0
14.1% 6.4% 2.4% 77.2%

50 | P a g e
 27/ 34/ 2/ 49/ 265/
Cost of training 377 0 4.3 1.275
7.2% 9% 0.5% 13% 70.3%

Damage of company 97 59/ 2/ 17/ 202/

377 0 3.45 1.784
reputation 25.7% 15.6% 0.5% 4.5% 53.6%

Source: Researcher’s field survey 2020

As shown in the above table respondents express their feeling on CBE have recruitment and
selection policy (M=4.65, SD= .919), there is formal induction/orientation/ Familiarization process
designed to help new recruits to understand the organization (M=4.62, SD=.907), In CBE line
managers and HR managers participate in the selection process (M=4.65, SD=.875), Selection
affects organizational performance (M=4.83. SD=.547), wrong selection De-motivating the rest of
the work force (M=4.67 SD=.853), Cost of Rehiring (M=4.22, SD=1.499) Cost of training (M=4.3,
SD=1.275) shows that high level of agreement with arithmetic mean of above 4.22. which implies
CBE have recruitment and selection policy and practice induction for new entrant employees
beside CBE line managers participate in selection process of the bank. In addition to that majority
of respondents agree that wrong selection affects the organization in cost of rehiring, demotivate
the rest of the work force and cost of rehiring.

Regarding on Selection system selects those having the desired knowledge, skills and attitude
(M=2.74, SD= 1.812), CBE have a dedicated and competent HR team (M=2.47 SD=1.73), there
is a biasness in selection at CBE (M=2.77, SD1.779), majority of respondents shows low level of
agreement. Which is CBE selection system does not select those who have the desired knowledge,
skill and attitude and also most of respondents believe that CBE does not have competent and
dedicated HR team while respondents also believe that there a biasness in selection at CBE with
low arithmetic mean of less than 2.74.

Enguay, (2017), states in her finding that a particularly lower level rating is assigned to such
particular issues of selecting as fairness, timeliness and transparency (communication) which are
so critical in shaping the perception of incumbents about the entire selecting process.

51 | P a g e
 Figure 4-1 Initial Screening

Source: Researcher’s field survey 2020

Figure 4-2 Interview

Source: Researcher’s field survey 2020

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 Figure 4-3 Selection Test

Source: Researcher’s field survey 2020

On the three methods of selection (Initial Screening, Interview and Selection Test) majority of
respondent agreed that CBE practice Initial screening, interview and selection test with 61.54%,
51.76% and 56.23% respectively.

The above graph illustrates as per the response of the respondent that CBE mostly practice
Selection test, initial screening and often use interview in order to select competent candidate. In
this case the researcher has interviewed district HR business partnering and talent acquisition
manager and explained that for clerical level, none clerical, professional level and low and middle
level management are required to written examination which is selection test. However, interview
is made for managerial level and new entrant applicants. So that the bank selection method is said
to be good.

In addition, according to Hiwot (2019) in her study she has find out that the selection method practice
of the CBE is then evaluated to be moderate.

4.3.2. Dependent variables

The researcher extracted arithmetic mean, frequency, percentage and standard deviation of the
sample described Answers about the dependent variables of the study as shown on the below Table

53 | P a g e
Table 4- 6 Response on organizational performance of the bank.

N Frequency/Percentage
Std.
Mean
Deviation Strongly Strongly
Valid Missing Disagree Neutral Agree
Disagree Agree
Recruitment and selection help
10/ 5/ 51/ 311/
to achieve the organization 377 0 4.72 0.776
2.7% 1.3%
0
13.5% 82.5%
goal.
The current and future growth
of the organization is
14/ 14/ 58/ 291/
depending on the organization 377 0 4.59 0.956
3.7% 3.7%
0
15.4% 77.2%
recruitment and selection
practice.
The use of fair recruitment and
selection methods contributes 78/ 49/ 2/ 16/ 232/
377 0 3.73 1.714
to CBE organizational 20.7% 13% 0.5% 4.2% 61.5%
development.
CBE recruitment and selection
136/ 63/ 2/ 17/ 159
practice reduce potential legal 377 0 3 1.831
36.1% 16.7% 0.5% 4.5% /42.2%
complications.
CBE recruitment and selection
190/ 55 2/ 14/ 116/
practice save training time and 377 0 2.5 1.785
50.4% 14.6% 0.5% 3.7% 30.8%
money.
CBE recruitment and selection
191/ 67/ 16/4 103/
help the organization to gain 377 0 2.4 1.728
50.7% 17.7%
0
.2% 27.3%
competitive advantage.
I am highly productive 136/ 63/ 2/ 17/ 159/
377 0 3 1.831
employee in the bank 36.1% 16.7% 0.5% 4.5% 42.2%
I understand my role that I play
178 75/ 1/ 16/ 107/
in achieving organizational 377 0 2.47 1.729
47.2% 19.9% 0.3% 4.2% 28.4%
goal.
Employees are motivated to 292/ 56/ 3/ 12/ 14/
377 0 1.41 0.947
stay with the organization 77.5% 14.9% 0.8% 3.2% 3.7%

Source: Researcher’s field survey 2020

Respondents also asked their opinion about how recruitment and selection affect organizations in
general and CBE specifically respondents shows high level of agreements on Recruitment and
selection help to achieve the organization goal (M=4.72 SD=0.776 ), The current and future growth
of the organization is depending on the organization recruitment and selection practice (M=4.59,
SD= .956). While respondents show medium level of agreement with arithmetic mean of 3.74 and
Std. Deviation of 1.714 on the use of fair recruitment and selection methods contributes to CBE
organizational development.

In addition to that respondents also shows low level of agreement on CBE recruitment and
selection practice reduce potential legal complications (M=3.00, SD=1.831) CBE recruitment and
54 | P a g e
selection practice save training time and money (M=2.50, SD=), CBE recruitment and selection
help the organization to gain competitive advantage (M=2.40, SD=1.728), I am highly productive
employee in the bank (M=3.00, SD=1.831), I understand my role that I play in achieving
organizational goal (M=2.47, SD=1.729) Employees are motivated to stay with the organization
(M=1.41, SD=.947).

According to W. Omolo (2012) The study established that sourcing, attracting, and screening taken
together are significant determinants of the performance of SMEs in Kisumu Municipality.

4.4. Correlation analysis

Correlation means relationship between two and more variables. It measures the degree to which
two sets of data are related. Higher correlation value indicates stronger relationship between both
sets of data (Coetzee, 2003). Correlation analysis is used to describe the strength and direction of
the linear relationship between two variables (Pallant, 2005). In this study, the correlation analysis
between dependent variable (organizational performance) and the independent variables (Internal
recruitment, external recruitment, and selection). Pearson correlation coefficients (r) can take on
only values from –1 to +1. The sign out the front indicates whether there is a positive correlation
(as one variable increases, so too does the other) or a negative correlation (as one variable
increases, the other decreases). The size of the absolute value (ignoring the sign) provides an
indication of the strength of the relationship. A perfect correlation of 1 or –1 indicates that the
value of one variable can be determined exactly by knowing the value on the other variable. On
the other hand, a correlation of 0 indicates no relationship between the two variables (Pallant,
2005).

55 | P a g e
Table 4- 7 Correlation analysis

Correlations

Internal External Organizational

Recruitment Recruitment Selection Performance
Internal Recruitment Pearson Correlation 1
Sig. (2-tailed)
N 377
External Recruitment Pearson Correlation .410** 1
Sig. (2-tailed) .000
N 377 377
Selection Pearson Correlation .598** .447** 1
Sig. (2-tailed) .000 .000
N 377 377 377
Organizational Performance Pearson Correlation .719** .531** .804** 1

Sig. (2-tailed) .000 .000 .000

N 377 377 377 377

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Researcher’s field survey 2020

According to (pallant, 2005) the strength of the relationship of two variables, r can range from
-1.00 to 1.00. A correlation of 0 indicates no relationship at all, a correlation of 1.00 indicates a
perfect positive correlation, and a value of –1.00 indicates a perfect negative correlation the
interpretation of the relationship between variables categorized as:
r=.10 to .29 or r=–.10 to –.29 which is small
r=.30 to .49 or r=–.30 to –.4.9 which is medium
r=.50 to 1.0 or r=–.50 to –1.0 which is large
The Pearson correlation between internal recruitment and organizational performance is (r = .719,
N = 377, Sig (2-tailed) =.000) which is significant, large and positive relationship.

In addition, Ibrahim Amadu (2014) finding explained that the internal source of recruitment at
NDVPL is positively related to the performance of the company at a statistical significance level
of 1%. The coefficient of 0.21779. so that the relationship of the two variables are large and
positive correlation coefficient.

56 | P a g e
The Pearson correlation between External recruitment and organizational performance is (r = .531,
N = 377, Sig (2-tailed) =.000) which is significant, Large and positive relationship.

Further Ibrahim Amadu (2014) in his finding implicate that there is also a positive correlation of
a magnitude of 0.2266 between the external source of recruitment and the performance of the
company at a statistical significance level of 1%. As a result, the relationship of the two variables
are large correlation and positive correlation coefficient.

The Pearson correlation between selection and organizational performance is (r = .804, N = 377,
Sig (2-tailed) =.000) which is significant and positive relationship. The relationship of the two
variables are significant, large correlation and positive correlation coefficient.

Finally, from the above correlation table, the relationship between internal recruitment and
organizational performance, the relationship between external recruitment and organizational
performance, selection and organizational performance are strongly correlated.

4.5. Multiple Regression

Multiple regression analysis is a statistical tool used to predict a dependent variable from multiple
independent variables. Multiple regression is not just one technique but a family of techniques that
can be used to explore the relationship between one dependent variable and a number of
independent variables or predictors. Standard multiple regression is the most commonly used
multiple regression analysis (Pallant, 2005). Regression model was applied to test how far the
independent variables such as Internal recruitment, External recruitment and selection and the
dependent variables which is organizational performance. Coefficient of determination R is the
measure of proportion of the variance of dependent variables about its mean that is explained by
the independent or predictor variables. It is conducted to investigate the effects of independent
variables on the dependent variable and identify the relative significant influence; i.e. independent
variables internal recruitment, external recruitment and selection on the dependent variable; i.e.
organizational performance. Higher value of R represents greater explanatory power of the
regression equation.

57 | P a g e
 4.5.1. Multiple Regression Assumptions
Assumption One: The relationship between the independent variables and the dependent
variables is linear.

The first assumption of multiple regression is that the relationship between the IVs and the DV
can be characterized by a straight line. Standard multiple regression can only accurately estimate
the relationship between dependent and independent variables if the relationships are linear in
nature (Osbborne & Waters, 2017). A relationship is linear if one variable increases by
approximately the same rate as the other variables changes by one unit. This means that the points
on the scatterplot closely resemble a straight line.

If the relationship between independent variables (IV) and the dependent variable (DV) is not
linear, the results of the regression analysis is under-estimate the true relationship. (Osbborne &
Waters, 2017).

A simple way to check the linearity between IVs and DV is by producing scatterplots and
Histogram of the relationship between each of our IVs and our DV.

Figure 4-4 Scatter plot for linearity internal recruitment & organization performance

Source: Researcher’s field survey 2020

58 | P a g e
 Figure 4-5 Scatter plot for linearity External recruitment and organizational perfromance

Source: Researcher’s field survey 2020

Figure 4-6 Scatter plot for linearity selection and organizational performance

Source: Researcher’s field survey 2020

59 | P a g e
Assumption Two: Homoscedasticity

The variance of the residuals is constant. This test the assumption of homoscedasticity, which is
the assumption that the variation in the residuals (or amount of error in the model) is similar at
each point of the model. The non-constant variance is called heteroskedasticity. If
heteroskedasticity is an issue, the points are often funnel shaped, becoming more, or less, spread
out across the graph. This funnel shape is typical of heteroskedasticity and indicates increasing
variance across the errors.

Assumption Three: Multi collinearity Analysis

This refers to the relationship among the independent variables. That is in multiple regression
analysis, multi collinearity refers to a situation where a number of independent variables are
closely correlated to one another. Multi collinearity test is also done using tolerance and variance
inflation factors (VIF). Tolerance is an indicator of how much of the variability of the specified
independent variable is not explained by the other independent variables. Taking into account the
Variance Inflation Factor not to exceed the allowable value (10), Tolerance value greater than
(0.05). the below table shows the results of the tests.

Table 4- 8 Collinearity Statistics

Collinearity Statistics
Model Variables Tolerance VIF
1 Internal 0.616 1.623
Recruitment
2 External 0.769 1.301
Recruitment
3 Selection 0.593 1.686
a. Dependent Variable: Organizational Performance

Source: Researcher’s field survey 2020

Table 4.7 shows that VIF values for each dimension of the independent variables is less than 10,
with tolerance (0.593-0.769). This indicates that there is no Collinearity diagnostics problem in

60 | P a g e
the regression model (Gujarati and Porter, 2003). Therefore, Analysis of collinearity and
correlation statistics shows that the assumption of Multi collinearity has been met, as VIF scores
were well below 10, tolerance scores above 0.05.

Assumption Four: The values of the residuals are normally distributed

The fifth, optional, assumption is that the regression model errors are approximately normally
distributed (Mooi, 2016). This assumption of normality can be tested by looking at the P-P plot
for the model. Skewness and kurtosis can be checked in the statistic tables, and values that are
close to zero indicate normal distribution. Histograms are bar graphs of the residuals with a super
imposed normal curve that show distribution. Only P-P plot and histogram graph are used to check
normality. The closer the dots lie to the diagonal line, the closer to normal the residuals are
distributed

Figure 4-7 Histogram: Standardized Residual

Source: Researcher’s field survey 2020

61 | P a g e
 Figure 4-8 Normal P-P plot of Standardize Residual

Source: Researcher’s field survey 2020

Table 4- 9 Regression Model Summary

Regression Model Summary

Adjusted R Std. Error of the
Model Variables R R Square Square Estimate
1 Selection 0.804 0.647 0.646 0.47662
2 Internal 0.857 0.735 0.734 0.41344
Recruitment
3 External 0.868 0.753 0.751 0.39943
recruitment
Over all Independent 0.843 0.712 0.710 0.430
Variables
Predictors: (Constant), Selection, Internal Recruitment, External Recruitment

Source: Researcher’s field survey 2020

The table also indicated that the correlation coefficient was (R = 0.804), which indicate a positive
relation between independent variable and dependent variable, in addition value of Coefficient of
Determination (R2) is (0.647) which indicate that (64.7%) of variance in organizational
performance may be intercepted through selection while the rest percent (35.3%) is attributed to
other variables which were not introduced in the regression model.

Table also indicated that the correlation coefficient was (R = 0.857), which indicate a positive
relation between independent variable and dependent variable, in addition value of Coefficient of
Determination (R2) is (0.735) which indicate that (73.5%) of variance in organizational

62 | P a g e
performance may be intercepted through internal recruitment while the rest percent (26.5%) is
attributed to other variables which were not introduced in the regression model.

Table also indicated that the correlation coefficient was (R = 0.868), which indicate a positive
relation between independent variable and dependent variable, in addition value of Coefficient of
Determination (R2) is (0.753) which indicate that (75.3%) of variance in organizational
performance may be intercepted through external recruitment while the rest percent (24.7%) is
attributed to other variables which were not introduced in the simple regression model.

Table 4-9 shows that the overall R value is 0.843. Therefore, R value (0.843) for the overall
independent variables such as internal recruitment, external recruitment and selection suggested
that there is a strong effect of these variables on organizational performance. It can also observe
that the coefficient of determination i.e. the R-square (R2) value is 0.710, which represent that
71% variation of the dependent variable (organizational performance) explained by the variation
in the independent variables, which in fact is a strong explanatory power of regression.

Further, Ibrahim Amadu (2014) in his finding the analysis indicates that a unit change in the
effectiveness of internal source of recruitment could bring about 22.0% changes in the performance of
the company. Also explain a unit increase in the effectiveness level of external source of recruitment
at NDVPL could also bring about 23.0% increase in the company’s performance. Furthermore, the
positive correlation coefficient of 0.1666 indicates that a unit change in the effectiveness of recruitment
and selection methods before employment would also bring about 17.0% increase in the performance
of NDVPL at a statistical significance level of 5%.
Table 4- 10 Coefficient Regression

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.

Selection 0.584 0.037 0.534 16.000 0.000
Internal Recruitment 0.335 0.033 0.336 10.262 0.000
External Recruitment 0.277 0.053 0.154 5.263 0.000
a. Dependent Variable: Organizational Performance

Source: Researcher’s field survey 2020

63 | P a g e
In the above table, the standardized beta coefficients indicated that how and to what extent value
of independent variable (Internal recruitment, external recruitment and selection) have an effect
on organizational performance in the bank.

It has revealed that the standardized and beta coefficient of selection has positive and significant
effect on organizational performance with a beta value (beta=.534), at 99% confidence level (p
<0.01). This implies that selection increase by 1 percent, organizational performance will increase
by 0.534.

It has also revealed that internal recruitment has positive and significant effect on organizational
performance with a beta value (beta=.336), at 99% confidence level (p <0.01). This implies that
internal recruitment increases by 1 percent, employee productivity will increase by .336.

In addition, the standardized and beta coefficient of external recruitment has positive and
insignificant effect on organizational performance with a beta value (beta=.154), 99% confidence
level (P>0.01). This implies that external recruitment increased by 1 percent, organization
performance will be increased by 0.154.

The result helps us to understand which variable are statically significant and the most determinant
in explaining the variance in organizational performance. Table 4-10 indicated that T calculated
value =16.000 and Sig value is (0.000) which is less than (α≤0.01), So according to the role the
null hypothesis is rejected and the alternative one is accepted which means that there is an effect
of selection on organizational performance.

The table also shows on the internal recruitment variable T calculated value =10.262 and Sig value
is (0.000) which is less than (α≤0.01), .So according to the role the null hypothesis is rejected
and the alternative one is accepted which means that there is an effect of internal recruitment on
organizational performance.

Finally, the table describe on the external source of recruitment variable T calculated value =5.263
and Sig value is (0.000) which is less than (α≤0.01), .So according to the role the null hypothesis

64 | P a g e
is rejected and the alternative one is accepted which means that there is an effect of external
recruitment on organizational performance.

In addition, the significant variables with P value less than 0.01 are likely to be meaningful addition
in organizational performance in the bank. Such variables are selection, internal recruitment and
external recruitment because a change in their values is related to changes in organizational
performance.

65 | P a g e
 CHAPTER FIVE
5. SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
This chapter provides the summary of the findings of the study, conclusions drawn from findings
and recommendations based on the findings. Conclusions drawn will be deduced from analysis
and objectives set for the research. The area for further research was also suggested in this chapter.

The study examined the effect of recruitment and selection practices on organizational
performance of the bank. The data collected through questioner were presented, analyzed,
interpreted, and discussed using statistical package for social science (SPSS 24) version.
Responses from both managerial and non-managerial staff indicate similar and, in some cases,
divergent views on recruitment and selection practices of CBE. Though research has established
concretely that recruitment and selection practices have positive effect on employee productivity
leading to improved organizational performance, from evidence gathered are yet to benefit from
the proper management of their recruitment and selection and even when they do, it is just
minimally.
This chapter is divided into the following four sections: summary of findings, Conclusions,
Recommendations and suggestion for future study

5.1. Summary of findings:

This study aimed to investigate the effect of recruitment and selection (internal recruitment,
external recruitment and selection) practice on organizational performance in the case of
Commercial Bank Ethiopia. The study posed a set of questions, placing the hypotheses and their
relation to the effect within the study variables. The study arrived at many results that contributed
to solve the study problem described in chapters 1 answering the hypotheses of the study. The
study came out with a number of results that may contribute to increase the organizational
performance in commercial bank of Ethiopia Based on the analyzed data and the study hypotheses
that tested in chapter four.

The data was collected from the purposively selected 14 branches of CBE, 4 district offices and 8
head office process unit, by using closed and open-ended questionnaire of randomly selected 400
employees of which 272 were professionals and the remaining 105 are managerial employee. From

66 | P a g e
the distributed 400 questionnaires, 377 were returned which is below the sample size 390 and the
response rate is 97%, which is acceptable for data analysis and discussion of the study. In addition,
unstructured personal interview questions were conducted.

The respondent is dominated by male employees that constitute (58.1%) of the respondents. With
regard to age group, 85% of the respondents are 40 and below. The survey result shows that 90.2% of
the respondents are at least first-degree holders. Majority of the responds have first degree with
66.3% The study also shows that 77.2% of the respondents have 1 up to 10 years of service in CBE.
In CBE, majority of the employees, (72.1%) of the respondents are professional job category
employees.

Respondents are asked their perception about the existing internal source of recruitment practice
of the bank and respondents shows their low level of agreement on the internal source of
recruitment of the bank is rational, acceptable and fair with the arithmetic means 2.18 with 1.765
Std. deviation and. While respondents show high level of agreement on the point CBE practice
transfer and promotion in order to fill vacant posts and openings with arithmetic mean of 4.32 and
3.73 alongside Std. Deviation of 1.310 and 1.714 respectively.

Respondents express their response with a high level of agreement on CBE practice
Advertisement, E-Recruitment and employment agencies with arithmetic mean of 4.35, 4.85 and
4.10 alongside Std. Deviation of 1.122, .476 and 1.574 while those who believe CBE use employee
referral recruitment method fall on medium with arithmetic mean of 3.21 and Std. Deviation 1.802.
on the other hand, regarding with CBE practice Job walk-ins, Labor Office and Education and
training establishment method fall on low level of agreement with arithmetic mean of 1.47, 2.00
and 1.41 alongside Std. Deviation of .859, 1.517 and .952. In addition, most respondents have
agreed with high level that external recruitment affects organizational performance with arithmetic
mean of 4.64 alongside Std. Deviation .897.

Considering the selection respondents were asked to put their level of agreement on the three
methods of selection majority of respondent agreed that CBE practice Initial screening, interview
and selection test with 61.54%, 51.76% and 56.23% respectively. On the points that CBE have

67 | P a g e
recruitment and selection policy, there is formal induction/orientation/ Familiarization process
designed to help new recruits to understand the organization, In CBE line managers and HR
managers participate in the selection process, Selection affects organizational performance, wrong
selection De-motivating the rest of the work force, Cost of Rehiring, cost of training shows high
level of agreement with arithmetic mean of above 4.22.

Respondents also asked their opinion about how recruitment and selection affect organizational
performance. Respondents shows high level of agreements on Recruitment and selection help to
achieve the organization goal and the current and future growth of the organization is depending
on the organization recruitment and selection practice arithmetic mean of 4.71 and 4.59 with Std.
Deviation .776 and .956 respectively. While respondents show medium level of agreement with
arithmetic mean of 3.74 and Std. Deviation of 1.714 on the use of fair recruitment and selection
methods contributes to CBE organizational development. One the other side respondents also
shows low level of agreement on CBE recruitment and selection practice reduce potential legal
complications (M=3.00, SD=1.831) CBE recruitment and selection practice save training time and
money (M=2.50, SD=), CBE recruitment and selection help the organization to gain competitive
advantage (M=2.40, SD=1.728), I am highly productive employee in the bank (M=3.00,
SD=1.831), I understand my role that I play in achieving organizational goal (M=2.47, SD=1.729)
Employees are motivated to stay with the organization (M=1.41, SD=.947).

Descriptive analysis was made to know the current practice of internal source of recruitment,
external source of recruitment and selection practice which is independent variable that have an
effect on organizational performance which is the dependent variables as a result normality test
was made and the mean level of internal recruitment of CBE (M= 3.43. SD=0.804). while level of
external recruitment of CBE (M= 3.25, SD=0.446) and selection of CBE (M= 3.742, SD=0.732).

The inferential analysis was made to know the relationship between internal recruitment, external
recruitment and selection on organizational performance. Correlation analysis is used to describe
the strength and direction of the linear relationship between two variables. The finding of
correlation analysis indicated that the Pearson correlation between internal recruitment, external
recruitment and selection on organizational performance is

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 Internal recruitment (r = .719, N = 377, Sig (2-tailed) =.000) which have a significant and
positive relationship.
External recruitment (r = .534, N = 377, Sig (2-tailed) =.000) which is significant and
positive relationship.
Selection (r = .804, N = 377, Sig (2-tailed) =.000) which have significant and
positive relationship.

In addition, to know the effect of internal recruitment, external recruitment and selection on
organizational performance, multiple regression analysis was made indicates that Internal
recruitment the value of VIF 1.623 and tolerance are 0.616. Beside coefficient of determination
i.e. the R-square (R2) value is 0.735 and the coefficient of standardized beta indicated that internal
recruitment (b=.336, p <0.01) Significant effect on organizational performance. Beside the effect
of external recruitment on organizational performance, indicates that the value of VIF 1.301 and
tolerance are 0.768 and the coefficient of standardized beta indicated that external recruitment
(b=.277, p <0.05) Significant effect on organizational performance. While selection indicates that
the value of VIF 1.686 and tolerance are 0.593. Beside coefficient of determination i.e. the R-
square (R2) value is 0.647 and the coefficient of standardized beta indicated that selection (b=.584,
p <0.05) Significant effect on organizational performance. So that there is no multi collinearity
problem among all independent variables because VIF do not exceed 10 and the value of tolerance
do not below 0.1

T calculated value =10.262 and Sig value is (0.000) which is less than (α≤0.05), for internal
recruitment and T calculated value =5.263 and Sig value is (0.000) which is less than (α≤0.05), for
external recruitment. Finally, T calculated value =16.000 and Sig value is (0.000) which is less
than (α≤0.05), So according to the role the null hypothesis is rejected and the alternative one is
accepted.

Finally The findings are in line with the finding of Jonathan, Moses and Willis (2012).Aruna
(2014), Adeyem,.Dumade and Fadare (2015 ),Ekwoaba, Ikeije and Uforma (2015) who found that
there was a significant relationship between recruitment and selection and employee performance
in organizations. The study also aligns with the Resource-Based theory which states that firms

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should constantly evaluate their workforce to ensure that they have the right people with the right
skills in the right places to ensure sustained competitive advantage.

5.2. CONCLUSION
Recruitment and Selection in every organization in general and banks in particular are very important.
Through this process organizations can acquire qualified people to achieve their strategies. The current
banking industries including CBE have a desire to employ high performing and competent employees.
However, this often is influenced by the recruitment and selection policy, practice, methods and
procedures of the company all other things being equal. Therefore, the study conducted to identify the
effect of recruitment and selection on organizational performance revealed several pertinent findings.

CBE employees are dominated by male employees and the organization is filled by educated and young
employees. Beside most of the employee’s job category is fall on job category of professional.

Based on the study finding the internal source of recruitment is often through promotion and transfer.
However, the internal source of recruitment methods of the bank is not rational, acceptable and fair.
Beside HR department does not have prerequisite knowledge while recruiting and selecting. In
addition, from the finding employees of CBE believe that internal recruitment has an effect on
organizational performance.

The external source of recruitment is often through E-recruitment, advertisement and employment
agencies. On the other hand, the bank does not apply walk-in, employee referral, labor office and
education and training establishment.

As per the finding mainly CBE employment is predominantly through initial screening, selection test
and interview in order to select the qualified and competent candidate. CBE have recruitment and
selection policy and line managers also participate in selection and induction/orientation is practiced
for those who selected in order to familiarize the new entrants to the organization environment.
However, the selection system of CBE does not select those having the desired knowledge, skills
and attitude and there is a biasness. Employees of CBE believe that wrong selection leads to
demotivating the work force, cost of training, cost of rehiring and damage company reputation.

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Furthermore, the study revealed that internal and external methods of recruitment and selection have
positive effect on the performance of CBE.

From the data analysis and the finding employees of CBE believe that Recruitment and selection
help to achieve the organization goal also the current and future growth of the organization is
depending on the organization recruitment and selection practice and the use of fair recruitment
and selection methods contributes to CBE organizational development.

0n the other hand respondents show their disagreement on CBE recruitment and selection practice
reduce potential legal complications and respondents show low level of agreement on CBE
recruitment and selection practice save training time and money including CBE recruitment and
selection help the organization to gain competitive advantage. Beside respondent’s express low
level of agreement on that they are highly productive employee in the bank and understand the
role that they play in achieving organizational goal most of the respondents are not motivated to
stay with the organization.

Pearson correlation between internal recruitment, external recruitment and selection on

organizational performance have significant and positive relationship.

The effect of internal recruitment, external recruitment and selection on organizational

performance, multiple regression analysis was made coefficient of standardized beta indicated that
internal recruitment (b=.336, p <0.01) Significant effect on organizational performance. Beside
the effect of external recruitment on organizational performance the coefficient of standardized
beta indicated that external recruitment (b=.277, p <0.05) Significant effect on organizational
performance. While selection indicates coefficient of standardized beta indicated that selection
(b=.584, p <0.05) Significant effect on organizational performance. So that there is no multi
collinearity problem among all independent variables because VIF do not exceed 10 and the value
of tolerance do not below 0.1

T calculated value =10.262 and Sig value is (0.000) which is less than (α≤0.05), for internal
recruitment and T calculated value =5.263 and Sig value is (0.000) which is less than (α≤0.05), for
external recruitment. Finally, T calculated value =16.000 and Sig value is (0.000) which is less

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than (α≤0.05), So according to the role the null hypothesis is rejected and the alternative one is
accepted.

5.3. Recommendation
In order to improve the standing of any organization, the performance drivers must work together.
Therefore, it is necessary to understand how well these drivers work together and function as a
whole. Effective Assessment involves understanding how each driver contributes to overall
productivity. Changes to one driver might (and probably will) have an effect on others.

So, based on previous results and conclusions, the following recommendations of this study help
for further improvement of organizational performance in CBE by solving the problem of
recruitment and selection practice which is stated in problem statement of this paper. Taking into
account the findings of this study and conclusion, the following sound recommendation forwards
to alleviate or at least to minimize currently encountered problems in the bank with related to the
effect of recruitment and selection on organizational performance.

Mainly, the effect created by the wrong practice of internal recruitment methods of the organization
which have an effect on organizational performance and it has to be controlled to prevent losing
experienced staff and creating demotivated staffs. Therefore, the management should improve the
promotional and transfer practice and criteria beside except for punishments, transfers have to be
considered after a discussion with the employee of his or her console. Mainly, promotions should be
in line with the performance excellence and development in educational qualifications. It is extremely
essential to take necessary action in order to avoid the risk of losing experienced staff and demotivating
employees to stay in the organization. Continuous updating is essential in internal promotional
opportunities as well as transfers to other branches/process. Hence, the Management has to take the
upper hand in assisting these critical issues as it will become a threat to the future development of the
Bank. Also, the internal recruitment methods affect organizational performance. Mainly, internal
recruitment and its success ought to be considered essential for demotivate to stay in the organization
has to be controlled. Furthermore, Management must enhance the opportunities to promote them to the
next level by developing a sense of achievement.

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The external method enables new blood to flow in to the bank while decreasing the inbreeding of
internal recruitment. The current external methods of recruitment of the bank is good and There is
no such best way of external methods of recruitment however, in order to get qualified applicants
from the general public the bank should employ additional other methods of external recruitment
considering the current situation of the general public (such as the use of social media) when hiring
staff. Considering the majority of younger generation tend to use social media to search for job
opportunities.

Beside All legislation and policies pertaining to recruitment and selection should also be made
available to all staff members of the bank. This will increase the awareness of the legal
appurtenances of recruitment and selection. The stakeholders of the institution should regularly
report on the productivity of the bank so that the staff are aware of how well or poorly the bank is
doing. It is equally important to regularly review incentive and reward systems of the bank.

The researcher recommended to increase the awareness of employees at Human Resource

department about the recruitment and selection theories, process and procedures training should
be given through on job and off-job training since among the core areas that the institutes survival
and existence depends human resources department capacity is the one and at key area of the
department employees who have deep knowledge and practical experience staff should be
assigned.


According to the finding and conclusion of the study CBE recruitment and selection practice does
not save training time and money. The researcher reviews secondary sources of the bank training
expense and explained on statements of the problem. If CBE would have a competent and qualified
staff the training cost and time would have been minimized. So, the researcher strongly
recommends the bank to give much emphasis on the recruitment and selection practice of the bank
since it minimizes future high training expense.

CBE employee in the bank don’t understand the role that they play in achieving organizational
goal most of the respondents are not motivated to stay with the organization. In order to retain and
motivate the current staff CBE should have a fair recruitment and selection method also fruitful
implementation. Beside the bank is highly recommended to update and provide a clear job

73 | P a g e
description for the existing and new recruited employees so that employees could understand their
role towards achieving organization goal.

Finally, the researcher recommends that to revise the bank recruitment and selection methods, process,
criteria, policy and procedure for internal and external recruitment and selection of the bank in order
to increase the acceptability and fairness and to minimize the biasness and turnover. Also, the bank
should look and improve other process of HR linked with recruitment and selection like the talent
management (job analysis and job specification) and compensation and reward management in order
to gain competitive advantage.

5.4. Suggestions for Further Studies

The intension of this study was to investigate the effect of recruitment and selection practice on
organizational performance in CBE. Following the study, future research can be conducted. This
study is delimited-on CBE at Addis Ababa region. Future researchers can also include outlying
districts and branch or other private and government banks. Beside this study has relevance in that
it has opened up the conversation around the relationship between internal, external recruitment
and selection on the performance of organization. It is also important for further studies to be
carried out across the country for a broader perspective on the relationship between the effects of
recruitment and selection on organizational performance using same or different variables and
their effect on different managerial aspects innovation, quality of services, employee satisfaction,
and other.

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 APPENDIX- 1 QUESTIONNAIRES

Masters of Business Administration Concentrated on HRM

QUESTIONNAIRE
Dear Sir/Madam
You have been selected to respond to this questionnaire for the study of “The effects of recruitment
and selection practice on organizational performance in the case of commercial bank of Ethiopia”.
You are assured that any information you provide is solely meant for the purpose of this research.
Your response to the questions would be kept confidential.

To get required data through filling out the questioners by placing (√) or (X) in the answer box
with your choice. Knowing that all the collected data will be used for research purpose only.

Thank you very much for your cooperation.

Zeynu Kemal
Zeynu911@gmail.com

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 I. Demographic Characteristics
Item Variables Alternatives Response
A Gender  Male []
 Female []
B. Age  Less than 20 []
 21 – 29 []
 30 – 39 []
 40 – 49 []
 50 and above []
C. Educational Background  Diploma []
 B.A. degree []
 Masters and above []
D. Work Experience  1–5 []
 6 – 10 []
 11 – 15 []
 > 16 []
E Job Category  Professional []
 Managerial []

Scale Rating
What is your opinion for the following Questions
related to the effect of recruitment on organizational
Strongly

Strongly
disagree
disagree

neutral

II
Agree

agree

performance

Internal source of Source of Recruitment 1 2 3 4 5

1 The internal source of recruitment of the bank is rational,
acceptable and fair.
2 CBE uses transfer in order to fill vacant posts

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3 CBE uses promotion in order to fill openings

4 The Human Resource Department have pre-requisite

knowledge while Recruiting and Selecting new applicants.
5 Internal source of recruitment affects organizational
performance

Disagree

Disagree

Disagree
Strongly

Strongly
III External source of recruitment Methods practice at CBE

Neutral

Agree
1 CBE usually practice Advertisement method
2 CBE practice E-Recruitment method mostly
3 Mostly CBE use Employee referral method
4 CBE uses Job walk-in method.
5 CBE practice Labor office methods
6 CBE uses Employment Agencies
7 CBE practice Education and training establishment
8 External source of recruitment affects organizational
performance
Disagree

Disagree

Disagree
Strongly

Strongly
IV Selection

Neutral

Agree
1 CBE have recruitment and selection policy
2 Selection system selects those having the desired
knowledge, skills and attitude.
3 There is formal induction/orientation/ Familiarization
process designed to help new recruits to understand the
organization.
4 In CBE line managers and HR managers participate in the
selection process.

5 Selection affects organizational performance.

6 CBE have a dedicated and competent HR team
7 There is a biasness in selection at CBE

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 Rate the following type of Selection method that CBE

Disagree

Disagree

Disagree
Strongly

Strongly
Neutral

Agree
practice

1 Selection Test
2 Interview
3  Initial screening

Strongly

Strongly
Rate your opinion on the following effect of wrong

Disagre
Disagre

Disagre
Neutral

Agree
selection results in the CBE performance?

e
1 De-motivating the rest of the work force
2 Cost of Rehiring
3 Cost of training
4 Damage of company reputation

Strongly

Strongly
Organizational Performance

Disagre
Disagre

Disagre
Neutral

Agree
V

e
1 Recruitment and selection help to achieve the organization
goal.
2 The current and future growth of the organization is
depending on the organization recruitment and selection
practice.
3 The use of fair recruitment and selection methods
contributes to CBE organizational development.

4 CBE recruitment and selection practice reduce potential

legal complications.
5 CBE recruitment and selection practice save training time
and money.
6 CBE recruitment and selection help the organization to gain
competitive advantage.
7 I am highly productive employee in the bank
8 I understand my role that I play in achieving organizational
goal.

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9 Employees are motivated to stay with the organization

If you have any suggestions or opinion, please specify it

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

_____________

ONCE AGAIN THANK YOU FOR TAKING THE TIME TO RESPOND!

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APPENDIX – 2 DESCRIPTIVE STATISTICS OF THE QUESTIONARIES

Statistics
N
Valid Missing Mean Std. Deviation
Gender 377 0 1.42 .494
Age 377 0 2.59 .746
Work 377 0 1.90 .849
Experience
Educational 377 0 2.31 .494
Background
The internal 374 3 2.18 1.765
source of recruitment of the
bank is rational, acceptable
and fair.
CBE uses transfer in order to 377 0 4.32 1.310
fill vacant posts
CBE uses promotion in order 377 0 3.73 1.714
to fill openings
The Human Resource 359 18 3.03 1.835
Department have pre-
requisite knowledge while
Recruiting and Selecting
new applicants.
Internal source of 377 0 4.06 1.595
recruitment affects
organizational performance
CBE usually practice 377 0 4.35 1.122
Advertisement method
CBE practice E-Recruitment 377 0 4.85 .476
method mostly
Often CBE use 377 0 3.21 1.802
Employee referral method
CBE uses Job walk-in 370 7 1.47 .859
method rarely.
CBE practice Labor office 371 6 2.00 1.517
methods rarely

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CBE uses Employment 376 1 4.10 1.574
Agencies
CBE practice Education and 372 5 1.41 .952
training establishment
frequently.
External source of 377 0 4.64 .897
recruitment affects
organizational performance
CBE have recruitment and 376 1 4.65 .919
selection policy
Selection system selects 377 0 2.74 1.812
those having the desired
knowledge, skills and
attitude.
There is formal 377 0 4.62 .907
induction/orientation/
Familiarization process
designed to help new
recruits to understand the
organization.
In CBE line managers and 377 0 4.65 .875
HR managers participate in
the selection process.
Selection affects 377 0 4.83 .547
organizational performance.
CBE have a dedicated and 373 4 2.47 1.730
competent HR team
There is a biasness in 377 0 2.77 1.779
selection at CBE
Selection Test 377 0 3.38 1.789
Interview 377 0 3.21 1.802
Initial screening 377 0 3.44 1.784
De-motivating the rest of the 377 0 4.67 .853
work force
Cost of Rehiring 377 0 4.22 1.499
Cost of training 377 0 4.30 1.275
Damage of company 377 0 3.45 1.784
reputation

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Recruitment and selection 377 0 4.72 .776
help to achieve the
organization goal.
The current and future 377 0 4.59 .956
growth of the organization is
depending on the
organization recruitment and
selection practice.
The use of fair recruitment 377 0 3.73 1.714
and selection methods
contributes to CBE
organizational development.
CBE recruitment and 377 0 3.00 1.831
selection practice reduce
potential legal complications.
CBE recruitment and 377 0 2.50 1.785
selection practice save
training time and money.
CBE recruitment and 377 0 2.40 1.728
selection help the
organization to gain
competitive advantage.
I am highly productive 377 0 3.00 1.831
employee in the bank
I understand my role that I 377 0 2.47 1.729
play in achieving
organizational goal.
Employees are 377 0 1.41 .947
motivated to stay with the
organization

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 APPENDIXES- 3 MODEL SUMMARY

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .868a .753 .751 .39943
a. Predictors: (Constant), Selection, External Recruitment, Internal
Recruitment

Variables Entered/Removeda
Variables Variables
Model Entered Removed Method
1 Selection, . Enter
External
Recruitment,
Internal
Recruitmentb
a. Dependent Variable: Organizational Performance
b. All requested variables entered.

Descriptive Statistics
Mean Std. Deviation N
Organizational Performance 3.0896 .80105 377
Internal Recruitment 3.4313 .80489 377
External Recruitment 3.2553 .44631 377
Selection 3.7421 .73268 377

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 181.761 3 60.587 379.755 .000b
Residual 59.509 373 .160
Total 241.270 376
a. Dependent Variable: Organizational Performance
b. Predictors: (Constant), Selection, External Recruitment, Internal Recruitment

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