ST.

MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

ASSESSEMENT OF RECRUITMENT AND SELECTIONPRACTICE IN

ETHIOPIAN REVENUE AND CUSTOMS AUTHORITY MERCATO NO.1 BRANCH

BY

FITSUM TESFAHUN

MAY, 2017

ADDIS ABABA, ETHIOPIA

13
ASSESSEMENT OF RECRUITMENT AND SELECTION PRACTICE IN ETHIOPIAN
REVENUE AND CUSTOMS AUTHORITY MERCATO NO.1 BRANCH

BY

FITSUM TESFAHUN

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

STUDIES, IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE
DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

MAY, 2017

ADDIS ABABA, ETHIOPIA

14
 ST.MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

ASSESSEMENT OF RECRUITMENT AND SELECTION PRACTICE IN ETHIOPIAN

REVENUE AND CUSTOMS AUTHORITY MERCATO NO.1 BRANCH

BY

FITSUM TESFAHUN

APPROVED BY BOARD OF EXAMINERS

__________________________ _____________
Dean, Graduate studies Signature

__________________________ ____________
Advisor Signature

___________________________ ___________
External examiner Signature

___________________________ ___________
Internal examiners Signature

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 DECLARATION

I, the undersigned, declared that this thesis is my original work, prepared under the guidance of
Assistant Professor Goitom Abraham. All sources of material 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 learning institution for the purpose of earning any degree.

_______________________________ _____________

Name Signature

St. Mary’s University, Addis Ababa May, 2017

16
 ENDORSEMENT

This thesis has been submitted to St. Mary‟s university school of graduate studies for
examination with my approval as a university advisor.

_________________________ _____________________

Advisor Signature

St. Mary’s University, Addis Ababa May, 2017

17
 Table of Contents
Contents Page

ACKNOWLEDGEMENTS ................................................................................................................................ iii

List of Acronyms ........................................................................................................................................... iv
List of Tables ................................................................................................................................................. v
ABSTRACT..................................................................................................................................................... vi
CHAPTER ONE ............................................................................................................................................... 1
INTRODUCTION ............................................................................................................................................. 1
1.1 Background of the Study ......................................................................................................................... 1
1.2. Background of the Organization ............................................................................................................ 2
1.3 .Statement of the Problem ..................................................................................................................... 3
1.4. Research Questions ............................................................................................................................... 5
1.5. Objectives of the study .......................................................................................................................... 5
1.5.1 General Objective ................................................................................................................................ 5
1.5.2 Specific Objectives ............................................................................................................................... 5
1.6. Scope/Delimitations of the Study .......................................................................................................... 6
1.7. Significance of the Study ........................................................................................................................ 6
1.8. Organization of the Study ...................................................................................................................... 6
1.9. Operational definition of terms ............................................................................................................ 7
CHAPTER TWO .............................................................................................................................................. 8
REVIEW OF RELATED LITERATURE ................................................................................................................ 8
Introduction .................................................................................................................................................. 8
2.1. The Concept of Recruitment and Selection ........................................................................................... 8
2.2. Definitions of Recruitment................................................................................................................... 10
2.3 Factors affecting recruitment ............................................................................................................... 12
2.3.1 Internal factors................................................................................................................................... 12
2.3.2. External factors ................................................................................................................................. 12
2.4 .The Process of Recruitment ................................................................................................................. 13
2.5. Sources and Methods of recruitment .................................................................................................. 17
2.5.1. Internal sources of recruitment ........................................................................................................ 17
2.5.2. External Sources of recruitment ....................................................................................................... 20
2.6. Definition of Selection ......................................................................................................................... 23
2.7. Right and poor selection ...................................................................................................................... 24
2.7.1. Right selection................................................................................................................................... 24
2.7.2. Poor selection ................................................................................................................................... 24
2.7.3 Consequences of poor selection ........................................................................................................ 24
2.8. The Selection Decision ......................................................................................................................... 25
2.8.1. Advertisement .................................................................................................................................. 25
2.8.2. Application and Short-listing............................................................................................................. 25
2.8.3. Filling of Application Blanks .............................................................................................................. 26

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2.8.4. Selection Test .................................................................................................................................... 26
2.8.5. Employment Interview...................................................................................................................... 26
2.8.6. Investigation of Applicant’s Background .......................................................................................... 26
2.8.7. Medical Examination......................................................................................................................... 26
2.8.8 Final Selection .................................................................................................................................... 27
2.8.9 Placement .......................................................................................................................................... 27
2.9 Orientation ............................................................................................................................................ 27
2.10. Challenges of Recruitment and Selection .......................................................................................... 28
2.11. Improving the Effectiveness of Recruitment and Selection .............................................................. 29
CHAPTER THREE .......................................................................................................................................... 30
RESEARCH DESIGN AND METHODOLOGY ................................................................................................... 30
3.1 Research Design .................................................................................................................................... 30
3.2 Population and Sampling Technique .................................................................................................... 30
3.3 Source of Data and Instruments used................................................................................................... 31
3.4. Procedures of data collection .............................................................................................................. 32
3.5 Data Analysis Method Employed .......................................................................................................... 32
3.6 Reliability and Validity of Research Instruments .................................................................................. 33
3.7. Ethical Considerations.......................................................................................................................... 33
CHAPTER FOUR ........................................................................................................................................... 34
DATA ANALYSIS AND INTERPRETATION ...................................................................................................... 34
4.1 Demographic Data Analysis .................................................................................................................. 34
4.2. Analysis of the findings of the study .................................................................................................... 36
CHAPTER FIVE ............................................................................................................................................. 47
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ....................................................... 47
5.1 Summary of Major Findings .................................................................................................................. 47
5.2 Conclusion ............................................................................................................................................. 49
From the data analysis the following conclusions were drawn. ................................................................. 49
5.3 Recommendations ................................................................................................................................ 50
5.4 Limitations of the study ........................................................................................................................ 51
References: ................................................................................................................................................. 52
Appendix –A: Questionnaire completed by respondents ........................................................................ 57
Appendix –B: Interview for the respondents .......................................................................................... 64

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 ACKNOWLEDGEMENTS

With love and sincerity, I express my gratitude to all those who have ensured the completion of
this work. I am particularly profoundly grateful to my advisor Assistant Professor Goitom
Abraham for his useful and constructive comments and suggestions, without which this work
would have not been completed successfully. I am greatly indebted for his constant
encouragement, enthusiasm and overall professional assistances.
This study was also made possible by the assistance obtained from the respondents (including
managers) 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.

Fitsum Tesfahun

iii
 List of Acronyms

ERCA - Ethiopia Revenue and Customs Authority

HR -Humane Resource

iv
 List of Tables

Table 1: Characterstics of the respondents .............................................................................. 34

Table 2: Response on recruitment process................................................................................. 36

Table 3: respondents view on the Basis of recruitment ............................................................ 38

Table 4: Respondents opinion on the effectiveness of recruitment process ............................. 38

Table 5: Responses on recruitment methods used .................................................................... 39

Table 6: Respondents views on selection criteria used and efforts made to adjust them with
new work environment .............................................................................................................. 39

Table 7: Staff involvement in selection process........................................................................ 41

Table 8: Employees perception on the overall recruitment and selection practice of the office
................................................................................................................................................... 42

Table 9: Challenges of recruitment and selection process ........................................................ 43

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 ABSTRACT

The purpose of this study was to assess the recruitment and selection practices and procedures
of Ethiopian Revenue and Customs Authority Mercato no.1 branch. Specifically to assess, how
the recruitment and selection process is practiced, the method of recruitment used, how to adjust
employees with their new job and challenges of recruitment and selection. The study adopted a
descriptive research design to assess the recruitment and selection practice both qualitative and
quantitative methods were employed to gather information using questionnaire and interview.
Both simple random sampling and purposive sampling techniques were used to choose
respondents of the study. The study obtained information from one hundred and forty (140)
respondents from staff of ERCA Mercato no.1 branch comprised out of different departments.
The data obtained from the survey were then analyzed with descriptive statistics and qualitative
data analysis. The findings of the study indicated that the recruitment process in ERCA Mercato
no.1 branch is not carried out in afair and transparent manner, newspaper advertisement of job
vacancy is the frequently used method of recruitment and no prior efforts are made to adjust
employees with their new job. The study further revealed that the selection and recruitment
process are characterized with lots of challenges such as employees turn over, stiff competition
in the labor market and unavailability of qualified work force. Among the recommendations
made were that potential employees should all be treated fairly in the recruitment and selection
process, various methods of recruitment should be used in order to get the right skill instead of
relying on one or two methods ,moreover orientation programs should be prepared so as to
familiarize new employees with their new job and organizational culture ,using internal source
s of recruitment in order to minimize turn over and stiff competition in the labor market which
are the potential challenges to the recruitment and selection in the organization so as to improve
employee’s performance and to ensure organizational stability.

Keywords: Recruitment, Selection and ERCA

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Research on HRM practices has been studied extensively among manufacturing and small and
medium enterprises. These theoretical and empirical studies have generally focused on HRM
practices within western organizations. Relatively few studies have been done about the impact
of HRM practices on firm performance in African countries (Ngo, Turban. Lau, and Lui,
1998).The HRM environment can be more important determinant of productivity in the service
sector than in the manufacturing sector, given the much larger share of total production costs
accounted for by employment, and the much more extensive direct contract between employees
and customers, in services (Ann and Bartel, 2000). It is now commonly accepted that employees
create an important source of competitive advantage for firms (Barney, 1991). As a result, it is
important that a firm adopts HRM practices like recruitment and selection, motivation, employee
working environment and compensation that make the best use of its employees.

Recruitment is the process of attracting and encouraging potential employees to apply for a
position, while selection is the process of making fair and relevant assessments of the strengths
and weaknesses of applicants with the intention to hire them (Boxall& Purcell 2008; Breaugh&
Starke 2000). Correct selection creates a match between the capabilities and inclinations of
prospective candidates against the demands and rewards inherent in the organization.

The effective appointment of appropriate candidates is critical to organizational success yet few
organizations formally evaluate their recruitment and selection efforts (Carlson, Connerly
&Mecham, 2002; Hacker, 1997). The quality of the human resource the firm has heavily
depends on the effectiveness of these two functions (Gamage, 2014).Recruiting and selecting the
wrong candidates who are not capable come with a huge negative cost which businesses cannot
afford. Thus, the overall aim of recruitment and selection within the organization is to obtain the
number and quality of employees that are required to satisfy the strategic objectives of the
organization, at minimal cost (Ofori &Aryeetey, 2011). As a result, the need to put in place
appropriate strategy for recruitment of organizational work force cannot be over emphasized
(Banjonko, 2003). There are several factors which influence recruiting efforts like organizational

1
reputation, attractiveness of the job, cost of recruiting, recruiting goals and recruiting philosophy
(Sims, 2002). Due to this, various studies were conducted on challenges of recruitment and
selection practices. There are also many discussions in international and national level study on
the recruitment and selection practices. For example, Edward (2012), examined the recruitment
and selection practice of HFC bank Ghana limited and find out that Recruitment and iselection of
employees to a greater extent determines the performance of an institution and it is of great
importance if institutions want to achieve their goals. Mavis (2014) also tried to identify the
influence of recruitment and selection in construction industries at Ashanti region.

At national level challenges faced in recruitment and selection practice is not researched enough
and documented. But there are few studies conducted in different sectors. For example, Melese
(2015), tried to investigate the recruitment and selection practice at agency for government
houses. A Research was also conducted on the overall HR practices on the former construction
and business bank by Eyob (2014). Another study by Girum (2015) tried to examine human
resource management practice in selected civil service bureaus of Addis Ababa city government.
Therefore, the present study on Ethiopian revenue and customs authority (ERCA) mercato No.1
branch will try to investigate the recruitment and selection practice because such practices and
procedures are not properly followed and are done for formalities. Furthermore, it is highly
subject to interferences from the management in which less qualified are picked for the job.
Consequently this has negatively impacted on employees‟ productivity and overall
organizational performance. Therefore, this study tried to examine the recruitment and selection
practice in ERCA Mercato No.1 branch.

1.2. Background of the Organization

The Ethiopian revenues and customs authority (ERCA) is the body responsible for collecting
revenue from customs duties and domestic taxes. In addition to raising revenue, ERCA is
responsible to protect the society from adverse effects of smuggling. It seizes and takes legal
action on the people and vehicles involved in the act of smuggling while it facilitates the
legitimate movement of goods and people across the border. The ERCA traces its origin to July
7,2008 as a result of the merger of the ministry of revenues, the Ethiopian customs authority and
the Federal Inland revenues into one giant organization. According to article 3 of the
proclamation No. 587/2008, the authority is looked upon as “an autonomous Federal agency

2
having its own legal personality”. The authority came into existence on 14 July 2008, by the
merger of the ministry of revenue, Ethiopian customs authority and the federal Inland revenue
authority who formerly were responsible to raise revenue for the Federal government and to
prevent contraband. Reasons for the merge of the foregoing administrations into a single
autonomous authority are varied and complex. Addis Ababa as the capital city of Ethiopia was
established in 1986 Addis Ababa has 10 sub cities and each sub city is divided in to Woredas,
which are the smallest administrative, unites of city Addis ketema sub city, which is one of the
sub cities in central part of Addis Ababa and the branch which understudy. Until December
2010, Addis Ketema sub city revenue office was one of the offices in the Addis ketema sub city
administration. According to ERCA (2011), due to the agreement concluded between the Addis
Ababa city Administration and ERCA after December 2010 the Addis Ababa Revenue Authority
and ERCA Have merged and four tax payer‟s branch office emerged. Micro tax payers‟ Branch
include those taxpayers whose annual turnover is not greater than Br 100,000 and administrate in
Woreda level, small tax payer‟s branch include those tax payers whose annual turnover is greater
than Br 1,000,000 and not more than one million Birr and minister at sub city level; medium tax
payers Branch include tax payers whole annual turnover is greater than one million but not more
than 15 million and administrate city level and large tax payers branch include tax payer whole
annual turnover at Federal level. Therefore, Mercato No.1 branch is one of the medium tax payer
branches and structured with manager , deputy managers , work processes and team processes .

1.3 .Statement of the Problem

Effective recruitment and selection in the Public Service is critical in meeting the capacity
challenge of the state which is to deliver quality services to the public. People are the most
valuable resource of an organization and good quality work depends on good quality people. As
a result organizations having poor recruitment and selection practices are unlikely to recruit the
right people at the right time. This may lead to poor performance over a period of time, which
can be costly and undermine service delivery.

A poor or administratively flawed recruitment decision can have a demoralizing effect on other
staff members as their roles may be affected or their workload is drastically increased while time,
money and effort are spent bringing the new recruit up to standard. The impact of low morale
and grievances among employees on an organization include, amongst others, low productivity,

3
high staff turnover, service delivery failure and loss of public/customer confidence in the
organization.

The practice of recruitment and selection most of the time lack reliability and is subject to
influence of unjust behaviors in most of developing countries like Ethiopia .which peoples in an
organization recommend their own relatives and friends, Selection bias and discrimination based
on age, sex, marital status, ethnic origin, religious preference, sexual preference etc are among
others. Therefore the recruitment and selection procedures are used for formalities rather than
means for obtaining candidates that best fit for the job.

According to Hacker (1999:3), failure to understand the hiring process costs businesses money.
He further argues that an inadequacy in understanding recruitment and selection creates other
related problems such as emotional stress. He advises all people who hire and promote staff to
understand the processes, develop their skills and stick with a plan of action. According to him, it
is dangerous to rely too much on gut feeling during the recruitment and selection process.
Furthermore, a study done by (Jackson & Schuler, 2003; Hacker, 1997; Werther& Davis, 1989)
indicates that Some of the negative outcomes of selection errors that have financial and non-
financial implications include: poor performance by the employee which leads to productivity
losses; absenteeism; loss of self-esteem by the employee; poor morale amongst peer workers
who are compelled to assume more responsibility due to someone else‟s non-performance;
customers‟ expectations not being met; injuries and accidents; possible lawsuits and union
activity; and subsequent labor turnover leading to future recruitment costs.

In ERCA Mercato No.1 branch recruitment and selection policies and practices highly
influenced by management as well as manipulated in order to appoint favorable candidates at the
expense of more competent and qualified candidates and as a result incompetent and unqualified
candidates are employed .As recruitment and selection play a central role in bringing the best
skills in to the public service but it is not researched enough.

Therefore, this study is carried out to fill the research gap on recruitment and selection practice
and challenges in Ethiopian revenue and customs authority Mercato No.1 branch and suggest
recommendations to improve the organizations recruitment and selection practice so as to meet
the quality work force required for the achievement of organizational goals.

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1.4. Research Questions

The research questions which will serve as a guide to the study are:

A. How is employees‟ recruitment and selection carried out at ERCA Mercato no.1 branch?
B. What method of recruitment is used by ERCA Mercato no.1 branch?
C. How are employees made to adjust with their new job at ERCA Mercato no.1 branch?
D. What are the general perceptions of employees on the recruitment and selection process
employed by Mercato no.1 branch office?

E. What are the challenges associated with the recruitment and selection practices at ERCA
Mercato no.1 branch office?

F. What factors can improve the recruitment and selection practices of the ERCA Mercato
no.1 branch office?

1.5. Objectives of the study

1.5.1 General Objective

The General objective of this research is assessment of the recruitment and selection practices of
Ethiopian revenue and customs authority Mercato no.1 branch office.

1.5.2 Specific Objectives

The Specific objectives of the research are:

A. To investigate how employees recruitment and selection is carried out in the ERCA Mercato
no.1 branch office.

B. To examine the methods of recruitment and selection employed by ERCA Mercato No.1
branch office.

C. To examine how employees are made to adjust with their new job at ERCA Mercato no.1
branch.

D. To determine the challenges associated with recruitment and selection practices of ERCA
Mercato No.1 branch office.

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E. To identify the factors that can improve the recruitment and selection practices of the ERCA
Mercato No.1 branch office.

1.6. Scope/Delimitations of the Study

To make the study manageable the scope of the study is delimited to Ethiopian revenue and
customs authority Mercato no.1 branch office which is one among the branches located in Addis
Ababa City. The study is also delimited to 182 employees of ERCA Mercato No.1 branch in
which 120 of them are operating level employees whereas the remaining 62 are respondents from
management, HR Department experts, work process coordinators and team leaders. There are
data collection tools such as questionnaire, interview, observation and experiment. However, the
researcher employed only questionnaire and interview types of data collection tools for this
study. Furthermore, the study is delimited to the data collection instrument in which the
researcher employed both quantitative and qualitative methods of data analysis and also the
study covered the recruitment and selection practices of ERCA Mercato no.1 branch office for
five years since it‟s establishment.

1.7. Significance of the Study

This study helps Ethiopian revenue and customs authority and other public and private
organizations to adopt measures in the context of human resource planning and development in
relation to recruitment and selection. Furthermore the study can serve as a spring board to those
who want to further study much into human resource planning and development. Finally this can
give fore knowledge to management of ERCA before go on board on human resource planning
and development.

1.8. Organization of the Study

The study consisted of five chapters. The first chapter provides discussion of the background to
the study, statement of the problem, Scope of the study, Objective of the study limitation of the
study, significance of the study and lastly the organization of the study. Chapter two present
literature reviews of concepts relevant to the study. Chapter three present the research
methodology and design adopted to conduct the research. This chapter deals with issues such as
the research design, instrument and data collection tools, population and sampling technique.

6
Chapter four present data presentation, discussion and analysis. The last chapter shows the
findings of the study, conclusion and recommendations.

1.9. Operational definition of terms

Recruitment: - the overall process of attracting, selecting and appointing suitable candidates for
jobs within an organization.

Selection: - the process of choosing the most suitable candidates for the vacant positions in the
organization.

Revenue and Customs Authority: - the body responsible for collecting revenue from customs
duties and domestic taxes.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

Introduction

This chapter deals with the assessment of literatures which relate to the topic the recruitment and
selection practices of organization. Several literatures were selected and relevant areas were
reviewed and evaluated. This chapter provides information about aspect of previous works which
relate to this study.

2.1. The Concept of Recruitment and Selection

Recruitment and selection constitute one of the vital practices in every organization. The survival
and progress of every organization depends on the nature of its workforce, since the success of a
business or an organization is directly linked to the performance of those who work for that
business. Making sure the right people are employed to work in an organization depends on the
quality of recruitment and selection policies and practices that are put in place.

In this era of organizational competitiveness, much circumspection should be given to the

recruitment and selection policies and practices since the employer is always vicariously liable
for the caliber of people that are employed.

This concept involves two interrelated processes, recruitment is the process of generating a pool
of capable people to apply for employment to an organization whiles selection is the process by
which specific instruments are employed to choose from a pool of applicants, persons most
suitable for the job taking into consideration management goals and legal requirements (Bratton
and Gold 2003). Armstrong (2009) categorizes recruitment and selection it into three stages:
defining requirement, attracting candidates, and selecting candidates respectively. The
recruitment and selection process is one of the most important HRM function as it is the point of
entry into most organizations and in addition where most organizations recruit talents that drive
their goals and interest. It also reflects the requirements and philosophy of the organization as
reflected in the caliber of people chosen for the job. Various techniques are employed in the
recruitment and selection processes and these include various forms of interviews, assessment
centers, curriculum vitae, references amongst others.

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Recruitment is described as the set of activities and processes used to legally obtain a sufficient
number of qualified people at the right place and time so that the people and the organization can
select each other in their own best short and long term interests (Dessler 1987 cited in
Richardson, 2012). An efficient recruitment plan will aid in the employment of workers who are
capable of increasing the performance of the company. Recruitment is described as the set of
activities and processes used to legally obtain a sufficient number of qualified people at the right
place and time so that the people and the organization can select each other in their own best
short and long term interests Costello (2006). In other words, the process provides the
organization with a pool of potentially qualified job candidates from which judicious selection
can be made to fill vacancies. Successful recruitment begins with proper employment planning
and forecasting. It is at this stage that, an organization formulates plans to fill or eliminate future
job openings based on an analysis of future needs, the talent available within and outside of the
organization, and the current and anticipated resources that can be expanded to attract and retain
such talent. Also related to the success of a recruitment 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 positions often require
minimum qualifications and experiences. These applicants are usually fresh students from high
schools, or universities or technical colleges, many of whom are yet to take decisions about
future careers or are contemplating engaging in advanced academic activity. Internal recruitment
is normally used to fill vacancies at the middle levels, senior administrative, technical and junior
executive positions. The need for scarce, high-quality talent, often recruited from external
sources, has usually been at the senior executive levels. Most organizations utilize both
mechanisms to make recruitment effective at all levels.

According to Montgomery (1996), the focus of recruitment and selection is on matching the
capabilities and inclinations of prospective candidates against the demands and rewards inherent
in a given job. Recruitment as a human resource management function is one of the activities
that impact most critically on the performance of an organization (Richardson, 2012). Recruiting
the right staff is one of the basic processes an organization needs to carry out if it aims at
increasing its competitiveness, as it serves as an entry for firms to receive new ideas. In today‟s
business environment, companies need to adjust their processes and methods to catch up with the
changes in the business environment. Constant changes in human resource management and

9
structure of organization increases competitiveness in the industry. Jovanovic (2004) said
recruitment is a process of attracting a pool of high quality applicants so as to select the best
among them. For this reason, top performing companies devoted considerable resources and
energy to creating high quality selection systems.

Recruitment and selection processes are important practices for human resource management,
and are crucial in affecting organizational success; Jovanovic (2004). Due to the fact that
organizations are always fortified by information technology to be more competitive, it is natural
to also consider utilizing this technology to re-organize the traditional recruitment and selection
processes through proper decision techniques, with that, both the effectiveness and the efficiency
of the processes can be increased and the quality of the recruitment and selection decision
improved. Huselid (1995), describes a human resource information system as is a system
exploited to acquire, store, manipulate, analyze, retrieve, and distribute relevant information
regarding an organization's human resources.

The purpose of the system is to support human resource services from the strategic level down to
the tactical and operational levels. Many decision-making problems, including recruitment and
selection, are herein involved. The system facilitates automated or computerized procedures to
solve the problems, and is of vital importance as an aggressive tool in the information age.

Researchers such as Mullins and Turkson indicate that effective recruitment practices and
policies enable an organization to get the required labor force to work with. The personnel
function becomes especially important when recruiting and selecting new administrators. A
critical role for human resource management is how to elicit positive reactions from candidates
when discussing administrative roles.

2.2. 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 are
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

10
 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 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 applicant at the right place and time to enable applicant
and the organization to select each other for their own optimum interest.
Furthermore in (2007), the chartered institute of personnel management of Nigeria (CIPM) gave
the definition of recruitment as the process of identifying and attracting or encouraging
individuals with the requisite skills and profile (potential candidates) to apply to fill existing or
future vacant positions in the organization by making them aware that such vacancies exist.

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.

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2.3 Factors affecting recruitment

There are number of factors that affect recruitment. These are internal and external

2.3.1 Internal factors

The internal factors are those factors within the organization that affect the recruitment of
personnel in the organization some of these are:

a. size of the organization:

The size of the organization has an influence on the recruitment process. Experiences suggest
that larger organizations find recruitment less problematic than organizations with small size.

b. Recruiting policy

Recruiting policy of the organization i.e. recruiting from internal sources (from own employees)
and external sources (from outside the organization) also affects recruitment process.

c. Good image of the organization

Image of organization is another factor having its influence on the recruitment process of the
organization. Good image of the organization earned by number of overt and covert actions by
management helps to attract potential and competent candidates.

d. Image of job

Image of job also affects recruitment also like image of organization. Better remuneration and
working conditions are considered the characteristics of good image of job. Besides, promotion
and carrier development policies of organization also attract potential candidates.

2.3.2. External factors

External factors are that are external to the organization that influence the recruitment process.
Some of these are listed below

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a. Demographic factors

Demographic factors are those factors which include age, sex, literacy, economic status etc. As
demographic factors are intimately related with human beings i.e. employees these have
profound influence on recruitment process.

b. Labor market
Labor market conditions i.e. demand and supply of labor is a particular importance in affecting
the recruitment process. For example, if the demand for specific skill is high relative to its supply
recruiting employees require more effort. On the contrary, if supply is more than demand for a
particular skill recruiting will be relatively easier.

c.Un employment situation

The rate of unemployment is yet another external factor having its influence on recruitment
process. When unemployment rate in a particular area is high, the recruitment process tends to be
simpler. On the other hand with low rate of unemployment recruitment process tends to become
difficult.

d. Labor laws

There are several labor laws and regulations passed by the state and central government that
govern different types of employment. These covers working conditions, compensation,
retirement benefits, safety and health of employees in industrial undertakings.

e.Legal considerations

Another external factor is legal considerations with regard to employment. Reservation of jobs
for the scheduled casts, scheduled tribes, and other backward classes is the particular example of
such legal considerations.

2.4 .The Process of Recruitment

Odiorne (1984) indicated that the quality of new recruits depends upon an organization's
recruitment practices, and that the relative effectiveness of the selection phase is inherently
dependent upon the caliber of candidates attracted. Indeed Smith et al. (1989) argue that the

13
more effectively the recruitment stage is carried out the less important the actual selection
process becomes. When an organization makes the decision to fill an existing vacancy through
recruitment, these are the stages they go through to recruit:

Step 1: Determine the exact need

Recruitment starts with identifying a need for recruitment. It could arise from workforce
planning, resignation or promotion. The manager should first consider other options before
deciding on recruiting. Decenzo and Robbins (2002:150) state that other options to recruitment
could include freezing the vacant post, distributing the work among other employees or
contracting a contract worker. According to Armstrong (1996:390), the first step in the
recruitment process is to submit a request for placement and obtain approval.

Step 2: Obtain approval

Approval is needed from the Human Resources department to verify budget constraints as well
as strategic plans and guidelines for recruitment. Approval must also be obtained from senior
management to ensure compatibility with the company‟s plans. This could lead to the
recruitment strategy of the organization being reviewed. Overtime and/or outsourcing could be
considered as alternatives.

Step 3: Combine or update job description and job specification

The job description and employee profile comprise the point of departure for all recruitment
activities (Lidstone, 1983:21). An accurate job description will enable the recruiting manager to
determine the exact nature of the vacant post. The job specification represents requirements with
regards to matters such as necessary experience, qualifications, motivation and communication
abilities. The recruiter must ensure that the correct job information is obtained. This corresponds
to step two of the recruitment process as set out by Armstrong (1996:389).

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Step 4: Determine the key performance areas (KPA) of the job

Step four may form part of the job description. KPA are those aspects of the job that are crucial
for the success of the task. Objectivity should always prevail because the recruiter must have an
insight of the actual job requirements.

Step 5: Consult the recruitment policy and procedure

It is very important to consult company recruitment policy and procedure before starting with the
recruitment process. This is a very important step in the process so that recruitment policy and
procedures will not be compromised. Policy and procedure indicates whether recruitment should
be done internally and/or externally. Company policy and procedures must be amended from
time to time when necessary and Terms and conditions of employment should be strictly adhered
to (Decenzo et al, 2002:95).

Step 6: Choose the recruitment source/s

The type of a person needed and the organization‟s policy are considered as main factors that
influence the selection of sources. In most big companies vacancies are first advertised
internally. External recruitment follows if no suitable candidate has been identified internally.

Step 7: Decide on a recruitment method

The recruiter must select the best methods for recruitment. The potential source of recruitment
may indicate what methods should be used. The recruiter should consider more methods to avoid
being accused of discrimination for using one method only. It is possible that an organization has
been using a specific newspaper for a period of time, will only attract one segment of possible
candidates of the population. If the paper is not covering other areas that have potential
candidates, this could be perceived as discrimination. Armstrong (1996:390) agrees with the
recruitment process suggested by Erasmus et al (2000: 303) but combines step six and seven
with step five.

Step 8: Implement the decision

It is in this step whereby the chosen recruitment method is applied. If newspaper advertisement is
one of the methods chosen, the advertisement must be thoroughly screened to avoid mistakes. In

15
the case of a recruitment agency, clear parameters must be communicated well in advance.
Location, pay, allowances, application procedures, deadlines and contact numbers must be
specified.

Step 9: Allow sufficient time for response

It is important to allow sufficient time for potential clients to respond to advertisements. The
time is stipulated in the method used by the recruiter but flexibility can be exercised to allow for
more applicants if necessary.

Step 10: Screen responses

In this step, the applicant‟s details are compared with what has been stipulated in the job
description and specification. Those applications that do not meet the basic requirements are not
considered for further selection. A telephone screening process can also be applied. Candidates
who indicate that they have the necessary competencies, skills and educational level could be
asked to complete application forms. Completed application forms should also be screened.

Step 11: Draw up a shortlist of candidates

In this step potential successful applicants are short-listed. Telephone screening can be done to
obtain specific information, such as the availability of the candidate for the interview. The
shortlist must be discussed with the relevant section manager before proceeding to interviews.

Step 12: Provide feedback to applicants

To maintain the reputation of the company, feedback must be communicated to all applicants in
time. Most advertisements nowadays mention that if the applicant does not receive feedback
after two weeks from the closing date, he/she must understand that his/her application was
unsuccessful. This is caused by high numbers of responses from the public and organizations are
unable to respond to each and every person.

Step 13: Proceed to selection

All short-listed applicants are invited for selection interviews.

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Step 14: Evaluate the recruitment effort

According to Andrews (1988:92), Armstrong (1996:390) and Cascio (1998:194) the last three
steps in the recruitment process could also form the first phase of the selection process. All the
activities in the recruitment process should be evaluated. The main reason is to make changes
where there is a need to do so. Erasmus et al (2000:308) indicate three stages in the recruitment
process that should be evaluated:

 Pre-entry stage, the ability to recruit newcomers;

• Entry stage, the initial expectations of newcomers; and

 Post entry stage, the choice of organization by the individuals.

The recruitment of personnel is a sensitive matter that should be approached carefully (Cloete
and Mokgoro, 1995:107). If the recruitment effort is not properly planned and manpower
planning is not carried out in a scientific manner, there is no guarantee that the organization will
attract the quality of personnel needed. The recruitment process flows into the selection process,
which is discussed in the next session.

2.5. Sources and Methods of recruitment

Various sources of recruitment can be explored in the recruitment process. These sources are
divided into internal and external sources. 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 (2000)
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 candidate.

2.5.1. Internal sources of recruitment

1. 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

17
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).

2. Transfers: Transfer is a lateral shift causing movement of individuals from one position to
another. Langseth (1995), consider transfers as being effected 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).

3. 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).

4. 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.

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

18
 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).
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).

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  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).

2.5.2. 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, labor office,
education and training establishment (Beardwell, 2007; Cober& Brown, 2006). Details of these
sources are discussed in this section.

1. 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:

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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).

2. E-Recruitment or online recruitment: uses web-based tools such as a farm‟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).

3. 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 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 of recruitment.

4. 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).

21
5. Labor Offices: are sources of certain types of workers. In some industries, such as
construction, 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 nonunion 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).

6. 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:

 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
accomplishment for the competition allows the company to get an insider's view as to
what the competition is doing to be successful. This gives the organization a chance to
stay a step ahead of the competition.
 External recruitment provides an opportunity for a fresh outlook on the industry that a
company may need to stay competitive.
 Bringing in fresh talent from the outside can help motivate the current employees to
produce and achieve 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.

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  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 adapt 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 advancement.
 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).
Methods of recruitment are either internal or external but an organization‟s choice will depend
on the human resources needs and objectives with each of them having their merits and demerits.
Cascio (2010) identifies that in deciding where, when and how to implement recruitment
activities, initial consideration should be given to a company‟s current employees, especially for
filling jobs above the entry level. Cascio (2010) conceded that if external recruitment efforts are
undertaken without considering the desires, capabilities and potential of present employees, both
short and long run costs may be incurred.

2.6. Definition of Selection

Mondy (2010: 136), 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.

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2.7. Right and poor selection

2.7.1. Right selection

Hiring the right people is a critical activity for every organization seeking to be successful. Many
companies focus on skills, experience and aptitude as the answer to the challenge. However,
experience shows that even if you identify candidates who rank high in these categories, there is
no guarantee of success.

Right selection creates a match between the capabilities and inclinations of prospective
candidates against the demands and rewards inherent in the organization. The effective
appointment of appropriate candidates is critical to organizational success yet few organizations
formally evaluate their recruitment and selection efforts (Carlson, Connery &Mecham, 2002;
Hacker, 1997).

2.7.2. Poor selection

Hiring a wrong person for the job can be costly since a lot of time and managers/staff effort is
spent in the whole selection process. There are enormous costs which are associated with
interviewing candidates, training new hires, advertising and other related administrative
activities. A “bad hire” has tremendous costs associated with it including advertising, application
screening, phone interviewing, face-to-face interviewing, the on-boarding process and training –
not to mention low productivity and missed opportunity if you hired the wrong person (Paul
stock, 2013).

2.7.3 Consequences of poor selection

Poor selection decision can have long-term negative impact on an organization. Jackson and
Schuler (2003), find that a poor hiring decision can cost as much as five times the employee‟s
salary. Costs of poor hiring decisions fall under two categories: tangible costs and intangible
costs. Tangible costs include those associated with hiring and include advertising, interview
expenses (that might also include travel, hotel, meals, and other expenses), employment testing
and background checks, relocation, and possibly litigation for wrongful termination,
outplacement expenses, and salary (Hinkin and Tracey, 2000). In addition to these, the company
will likely have incurred the additional costs of spending considerable human resource and

24
management time in developing the job description and advertisement, screening resumes,
applicant testing and performing background checks, as well as interviewing candidates

Hacker (1997) and Werther and Davis (1989) are: the employee performing poorly which leads
to lost productivity, absenteeism, loss of self-esteem by the employee, poor morale amongst peer
workers as they suffer the consequences of the colleagues poor performance, customers‟
expectations not being met, managers experience increased pressure and failing to meet their
objectives, injuries and accidents may occur, possible lawsuits, even union activity and
subsequent labor turnover leading to future recruitment costs.

2.8. The Selection Decision

Selection is a process by which managers use specific instruments to choose from a pool of
applicants, a person or persons most likely to succeed in the job(s). This process is carried out to
select the most suitable person to fill positions in an organization. Recruitment is concerned with
filling the positions but selection deals with the actual exercise of choosing those who are
considered as the most suitable, based on valid information and systematic evaluation.

2.8.1. Advertisement

The vacant position must be advertised on the radio, television or in newspapers. It must be brief,
contain all relevant details stated concisely including key duties, level or grade of the job, special
working conditions, qualifications, experience, etc. The mode of application should also be
stated when advertising.

2.8.2. Application and Short-listing

Normally, many people may apply for an advertised position and it will not be possible to invite
all the applicants to an interview. One way of overcoming this problem is to have a short-list out
of the long-list of applicants. The short-listing is done by removing from the list of applicants,
those who do not qualify for the position or do not meet certain requirement like age, low
qualification, higher salaries than the organization can pay, etc.

25
2.8.3. Filling of Application Blanks

Most organizations have employment application forms to be filled by job seekers in order to
collect vital information from prospective employees in terms of personal history, education,
previous employment, etc. The accuracy with which these forms are filled gives a good
indication as to the type of person the job seeker is.

2.8.4. Selection Test

They also stated that, in modern business organizations, tests have formed a substantial part of
the selection process. Shortlisted applicants will be given tests in their individual fields of
knowledge. For instance, Secretaries may be tested on shorthand and speed work.

2.8.5. Employment Interview

This is an oral assessment of a job applicant through interaction between two or more parties for
a pre-determined purpose. Information is exchanged usually through questions and answers. This
exercise is exhaustive and sizes the applicant up. Information is gathered on the applicant by the
panelists through the questions they ask and the observations they make about the applicant.

2.8.6. Investigation of Applicant’s Background

This is a means of checking on the history and experience of the applicant to find out how
honestly he had exposed himself. It is done by seeking confidential reports from referees. These
references can be oral or written. Since the references are normally submitted by the applicants
who feel they can write well about them, the later may feel reluctant to write what he thinks of
the applicant and overlooks his shortcomings or over-emphasizes the applicants‟ good points.

2.8.7. Medical Examination

In some cases, medical fitness tests precede other steps, but with clerical jobs for instance, it
comes after employment interview. This is to make sure that the applicant is physically fit for the
job. It also guarantees that he does not have any contagious disease that he can easily spread at
his workplace.

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2.8.8 Final Selection

Sometimes the best person for the job stands out clearly among the applicants. In other
situations, the person who most nearly matches the personnel specifications may have a major
defect which the employer must accept and “live with” if he recruits him. This Stage therefore is
difficult to handle and requires tact and experience.

2.8.9 Placement

As a final step, the newly engaged person is given orientation on his job and placed in his
specific workplace. G.A.B.E.T further explained that, the steps listed above can be altered by an
organization depending on the nature of the job.

2.9 Orientation

Employee orientation is the procedure of providing new employees with basic background
information about the firm and the job. It is more or less, considered as one component of the
employer‟s new-employee socialization process. The socialization process could be seen as an
ongoing process of initialing in all employees the prevailing attitudes, standards, values, and
patterns of behavior that are expected by the organization. Socialization is important for
employee performance and for organizational stability.

The reasoning for orientation is, in the main, to alleviate fear or anxiety which can be
experienced by newcomers in relation to how well they would fit into the organization and how
well they would perform. The components of an effective orientation system include preparing
for new employees, determining what information is needed and when it is needed, presenting
information about the workday, the organization itself, its policies, rules and benefits, all to be
evaluated and followed up (Mathis and Jackson, 1991). Most importantly and to the fore,
employees would be introduced to the channels of communication in the workplace and, thus,
leading to effective coordination.

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2.10. Challenges of Recruitment and Selection

According to Cooper et al. (2003) recruitment and selection of employees is the most important
job of a Human Resource person. CIPD (2009), suggest that effective recruitment is central and
crucial to the success of day-to-day functioning of any organization. The success of recruitment
depends upon finding the people with the right skills, qualification and expertise to deliver
organization objectives and the ability to make a positive contribution to the values and aims of
the organization (CIPD, 2009). 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 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 labour 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 have 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).

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 2.11. 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.

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

Introduction

This chapter deals with the methodology adopted in conducting the study. The chapter is
organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), administration of instrument and analysis of data.

3.1 Research Design

In this study descriptive research design is applied by using both qualitative and quantitative
methods .This design will particularly be important for the study because it helps to describe and
interpret the actual events that exist now and existed in the past and that have influence in
recruitment and selection practice of ERCA Mercato No.1 branch.

According to Cohen, Anion & Morrison (2005), descriptive research design is used to collect
numerical data from large population. In addition to this by using descriptive research method it
is easy to use various forms of data as well as incorporating human experience which enabled the
researcher to look the study in so many various aspects and can provide bigger overview about
the subject matter. It also gives room to use both quantitative and qualitative data in order to find
solution to the specific study.

3.2 Population and Sampling Technique

The population considered for this study will consists of all management staff and employees of
ERCA Mercato No.1 branch office. There are around 335 employees working at ERCA Mercato
No.1 branch office.

ERCA Mercato No.1 branch is structured with five core process and twenty two team processes
with a total of 335 employees. The sampling technique for this study will be simple random
sampling by taking staff who work in all work processes and team processes of the organization.
This method will be used to give equal chance to the population to make sure the
representativeness of the data and also to ensure the representative of all characteristics of the
population which it was not considered by the researcher. In addition purposive sampling

30
technique will be implemented for those who are directly responsible with recruitment and
selection. It is the researcher‟s belief that using this method will enable to have in-depth
knowledge from those who are in a position to give about the practice of recruitment and
selection at ERCA Mercato No.1 branch office.

The sample units for the study are employees of ERCA Mercato No.1 branch .Since it is very
expensive in terms of money and time to collect data from all these employees, so that the
researcher has to determine sample which is representative for the total population. Yamane
(1967:886) provides a simplified formula to calculate sample sizes of finite population, which
will be used to determine the sample size for this study a 95% confidence level will be assumed
to determine the sample size at e=0.05. The sample size will be determined by the formula:

n=_____N_______

1+N (e) 2

Where n is the required sample size, N is the population size and e is the level of precision.
Applying the formula,

n= _____335___=182.31 approximately equal to 182

1+335(0.05)2

Therefore the sample for the study is calculated to be 182 employees of ERCA Mercato No.1
branch office.

3.3 Source of Data and Instruments used

Data was collected by using both primary and secondary data collection methods. Primary data
was collected from employees of Ethiopian revenue and customs authority (ERCA) Mercato
No.1 branch office through questionnaire and interview. Employees were requested to fill the
designed open and close ended questionnaire.

In addition interview was held with top level managers and human resource department experts,
work process coordinators and team leaders. These methods of data collection will help the
researcher to triangulate the data gathered from questionnaire with the data collected from the
interview.

31
On the other hand, secondary data collected from various published and unpublished related
literatures, recruitment and selection policy and procedure of ERCA and organizational booklet
will be reviewed to get different data about the study.

3.4. Procedures of data collection

Copies of the questionnaires were distributed to respondents at work place. Then researcher
explained the questions to the respondents thoroughly after copies of the questionnaire were
given to them. It took about two weeks to distribute and collect the questionnaire from the
respondents. The status of the questionnaires was followed via phone and by physical visiting
and a pre-test was conducted before actual data collection using small representative sample to
find out whether the questions are properly being filled. The researcher collected the
questionnaire from few respondents and make sure whether it was correctly filled or not by the
participants. Clarity of wordings in view of respondents‟ level of understanding was checked on
the pre-test to avoid misunderstanding of the questions.

3.5 Data Analysis Method Employed

In accordance with the data types, quantitative and qualitative data analyses were employed. The
collected data was collated into MS-Excel spreadsheets and compiled at first. Then the data was
summarized, edited, coded, tabulated and analyzed. Editing was done to improve the quality of
data for coding. Editing involved going through the questionnaires to see if respondents
responded to questions and see if there are blank responses. Tabulation involved counting the
number of cases that fall into various categories. Descriptive statistics was applied to analyze
quantitative data where data is scored by calculating the number and percentages. Qualitative
data analysis method was also employed to analyze qualitative data gathered using the interview.

32
3.6 Reliability and Validity of Research Instruments

Validity is usually defined as the best available approximation to the truth or falsity of a given
inference, proposition or conclusion‛. It can be subdivided into internal and external. While
internal validity is about causal relationship and truthfulness of inferences, external validity is a
concern about generalizability of results. All raw ideas and concepts that came out as emotional
and spontaneous reflection and biases at the early stage of this work have been cut back and
deleted from this document. Efforts have also been made to maintain neutrality and not to
compromise the validity of data and the outcomes of the research.
Above all the design and convergence of data collected by means of different tools were guards
to validity and reliability. Some explanations given by interviewees have been directly quoted in
the document. Even though it would be difficult to generalize based on these explanations, I
believe they can tell the existing phenomenon with local tone, which can also facilitate the
triangulation of data obtained from different sources.

3.7. Ethical Considerations

In order to complete a research successfully cooperation from participants and informants is found
essential. As a result, the respondents need to be treated with respect and honesty. (Catherine, 2002)
Each participant was fully aware of the nature and the purpose of the research and their anonymity
will ensure. No names or any identifiable information from respondents takes as a way of ensuring
the ethical principle to keep all information confidential.

33
 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

Introduction

In this chapter data collected through questionnaire is discussed and document review will be
presented, analyzed and interpreted in a brief and organized way. Among the distributed 182
questionnaire 140 have been collected and this makes the response rate to be 76.9%.In fact,
according to Armstrong and Ashworth (2000), texts on survey methods have usually advised that
response rates of 60% and over are necessary to ensure that the replies of those responding will
give an accurate picture of the population from which they are drawn.

4.1 Demographic Data Analysis

On demographic data questions were asked on gender, academic qualifications and number of
years at post. In dealing with gender 91were males and 49 were females.

Table: 1 Characteristics of the respondents

Gender

Sex Frequency Percentage

Male 91 65%
Female 49 35%
Educational qualification
College diploma 14 10%
98 70%
b
Bachelor degree
Master‟s degree 28 20%
PhD - -

Work experience of the respondents

1 to 5 years 56 40%
6 to 10 years 28 20%
11 to 15 years 42 30%
16 to 20 years - -
20 years and above 14 10%

34
 General Manager 1 0.71%

Deputy managers 3 2.14%

Work process leader 10 7.14%

Team leader 28 20%

Senior officer 56 40%

Junior officer 42 30%

Source: Survey data, 2017

From table 1, it is realized that 91 of the respondents representing 65% of the total number of
participants were males while the rest 49 (35%)of the total number were females. This clearly
shows that there were slightly more male participants than female in this survey and it may be as
a result of the sampling technique used in selecting respondents.

Concerning educational status of the respondents, staffs who are degree graduates have the
largest portion which is around 98(70%), among the total respondents, 28 (20%) of them have
master‟s degree and the rest of the respondents which is 14 (10%) is graduated with college
diploma. From the above table we can see that no one from the selected respondents have PHD.
The fact that almost all of the respondents being educated in different levels it is believed that
they can easily understand the questionnaire as desired by the researcher.

Based on the data collected through questionnaire, the large portion of respondents 56 (40%) fall
within the range of one to five years of service, the second highest percent 42 (30%) of the
respondents have more than 10 years of experience, 28 (20%) respondents have respondents
from the sample size have an experience of six to ten years and the rest or 14 (10%) of the
respondents have 20 and above years of experience respectively. Therefore the researcher
believes that these combinations of the respondents were good enough in finding the accurate
information recruitment and selection practice of the organization because the majority of
respondents had spent at least a year to five years at the branch

Regarding the job title/position of the respondents 56 (40%) are senior officers, 42(30%) are
junior officers, 28 (20%) are team leaders whereas the remaining 10 (7.14%) are work process
leaders, 3 (2.14%) are deputy managers and 1(0.71%) of them is general manager respectively.

35
 This illustrates that the study comprises respondents from different level and helps to get
responses from different perspectives.

4.2. Analysis of the findings of the study

This section deals with the analysis and interpretation of the data gathered employees through the
distribution of questionnaires. Hence, the analysis and interpretation of the data are presented
following each table accordingly.

Table 2: Response on recruitment process

Statements Rating
No
Strongly Disagree Neutral Agree Strongly
disagree agree
F % F % F % F % F %
1. Clear procedures are followed during 0 0 42 30% 42 30% 56 40% 0 0
recruitment of employees

2. The human resource department adheres to 0 0 56 40% 14 10% 70 50% 0 0

these policies and procedures

3. The recruitment process is monitored to 56 40% 0 0 70 50% 14 10% 0 0

ensure fairness and transparency
4. There is proper planning for the recruitment 0 0 56 40% 28 20% 56 40% 0 0
process

5. Proper consideration is given to skills, 0 0 56 40% 14 10% 56 40% 14 10%

competencies and traits before a post is
advertised

Source: Survey data, 2017

According to the survey when we see opinion of respondents on existence of clear procedure for
recruitment in the HR department 56 (40%) of the respondents agree that human resource
follows clear procedures of recruitment while 42 (30%) respondents replied that they disagree on
that HR follows clear procedures of recruitment whereas the rest 42(30%) respondents remain
indifferent respectively. This indicates that clear procedures are followed by the human resource
department during recruitment of employees.

The next point in which respondents forwarded their opinion was the HR department adherence
to recruitment procedures. As a result 70 (50%) of respondents agreed that HR department

36
adherence to the recruitment policies and procedures, 28(20%) remain neutral, 56(40%) either
disagree about the HR‟s adherence to its recruitment policies and procedures respectively. From
the responses a large number of respondents show an agreement. However, the HR‟s adherence
to its recruitment policies and procedures that each individual should be communicated well and
should be understood equally by all level of employees from the higher to the lower.

When we see the respondents opinion on fairness and transparency of the recruitment process
among the total respondents 70 (50%) remain neutral on the issue while 56 (40%) of the
respondent said the recruitment process is not fair and transparent in their organization and the
remaining 14 (10%) agreed that the recruitment process is fair and transparent respectively. This
clearly elaborates that the recruitment and selection process is not fair and transparent and will
make the .organization to lose its acceptance from its employees and reputation from the public.

Looking to respondents‟ opinion the existence of proper planning for recruitment process
64(46%) of the respondents agreed that there is proper plan for recruitment process while
48(34%) of the respondents don‟t believe that there is proper planning for recruitment process
and the remaining 28 (20%) of the respondents respectively. This clearly explains that there is
proper planning for recruitment process in the organization.

Lastly when we see respondents opinion on whether proper consideration is given to skills,
competencies and traits before a post is advertised in which 70(50%) either agree or strongly
agree that proper consideration is given to skills, competencies and traits before a post is
advertised whereas 42 (30%) of the respondents disagree on proper consideration is given to
skills, competencies and traits before a post is advertised and 14 (10%) of the respondents remain
neutral. This illustrates that proper consideration of skills, competencies and traits can make the
organization to obtain the right talent that fits to the vacant position in the organization.

37
 Table 3: Respondents view on the Basis of recruitment
No Particulars Frequency percentage
1. Political affiliation 42 30%
2. On merit 56 40%
3. Family /relatives 42 30%
4 Payment of money - -
Total 140 100%
Source: survey data, 2017

As we can observe from the above table from the total respondents about 56(40%) of them said
that merit is the basis for recruitment in their organization, 42 (30%) replied that political
affiliation is basis for recruitment in their organization whereas the remaining 42(30%) of the
respondents said that the basis for recruitment is family or relatives. Therefore it‟s possible to say
that most of the times employees are recruited on basis of other factors other than merit which
makes the organization unable to get right talent at the right time and place.

Table 4: Respondents opinion on the effectiveness of recruitment process

Particulars No. of respondents percentage
Very effective 0 0
Effective 56 40%
Not effective 42 30%
Indifferent 28 20%
Bad 14 10%
Total 140 100%
Source: Survey data, 2017

As shown on table 5 above from the total respondents 56 (40%) think the recruitment process in
their organization is effective, 42 (30%) of the respondents said it‟s not effective whereas
28(20%) remain uncertain and the rest 14(10%) of the respondents the recruitment practice is
bad.

38
Table 5: Responses on recruitment methods used
No Methods Frequency Percentage
1. Radio and TV advert 42 30%
2. Newspaper advert 56 40%
3. Employment agencies 14 10%
4. Newspaper ,radio and TV 28 20%
advert
Source: Survey data, 2017

As can be seen from the table above from the total respondents 56 (40%) replied that newspaper
advert of job vacancy is the most frequently used recruitment method in their organization,42
(30%) of the respondents replied that radio and TV adverts are the frequently applied method of
recruitment whereas the remaining 28 (20%) and 14(10%) of the respondents respond b
newspaper and TV and employment agencies as the potential methods of recruitment in their
organization respectively. This illustrates that the even if newspaper and TV and radio advert are
costly it can reach wider area and will provide us with a larger pool of applicants from which the
best talent is obtained.

Table 6: Respondents views on selection criteria used and efforts made to adjust them with
new work environment
No Statements Rating

Strongly Disagree Neutral Agree Strongly

disagree agree
F % F % F % F % F %
1. A formal academic qualification is - - 28 20% - - 42 30% 70 50%
considered when selecting candidates
2. Experience takes precedence over 14 10% 28 20% 28 20% 42 30% 28 20%
qualifications when selecting candidates
3. The curriculum vitae, references and 14 10% 42 30% - - 56 40% 28 20%
qualifications are checked thoroughly
before appointing a candidate
4. Candidates are selected on the basis of 14 10% 28 20% 42 30% 28 20% 28 20%
their competency and qualification
5. The selection panel always recommend - - 42 30% 28 20% 56 40% 0 0
the appointment of candidates who have
better skills and qualifications than the
rest
6. Employees are made to adjust with - - 70 50% 28 20% 28 20% 14 10%

39
 their new job
Source: survey data, 2017

As shown on the above table the opinion of respondents whether formal academic qualifications
are considered when selecting candidates 112 (80%) of respondents either agree or strongly
agree that academic qualifications are considered during selection while the rest 28 (20%)
disagree on that academic qualifications are considered when selecting candidates. This clearly
shows that proper consideration is given to academic qualifications during selection.

The next point is opinions of respondents on whether work experience takes precedence over
qualifications when selecting candidates in which 70 (50%) of respondents either agree or
strongly agree that experience takes precedence over qualifications during selection, while 42
(30%) of respondents disagree or strongly disagree on that experience takes advantage over
qualification during selection whereas the rest 20% stay indifferent. It means that among other
factors (i.e. experience, knowledge and skills), qualifications are also considered when selecting
candidates.

When we look at opinions of respondents on whether curriculum vitae, references and

qualifications are checked thoroughly before appointing a candidate 84 (60%)of respondents
agree or strongly agree indicated that reference checks are not taking place regularly, while 60%
suggest that reference checks are done regularly. According to the recruitment policy all
applications should be attached with certified copies of qualifications, identity documents and
curriculum vitae for reference checks which should be done on each and every candidate
shortlisted or appointed in the public service before they assume their duties.

Looking to the opinions of respondents on whether candidates are selected on the basis of their
qualifications and competency. 30% of respondents disagree and the selection of candidates is
not based on competency and qualifications, 40% of respondents agree that selection is based on
competency and qualifications whereas the rest 30% of the respondents remain indifferent. This
illustrates that candidates are selected on the basis of qualifications and competencies in the
organization.

Regarding opinions of respondents on whether the selection panel would recommend the
appointment of candidates who are better qualified than them 60% of respondents agreed that

40
those candidates who are better qualified than the rest of the candidates are recommended by of
the selection panel ,while 30% of respondents disagree on that the selection panel would
consider candidates less qualified than the rest are recommended by the selection panel whereas
the remaining 10% of the respondents remain uncertain on the issue. This indicates that the
selection panel recommends those candidates having better qualification from the application
pool.

When we see views and opinions of respondents on fairness of the selection process 50% of
respondents disagree on existence of fairness in selection process while 40% of the respondents
agreed that selection is carried out in fairly and acceptable manner whereas the rest 10%
respondents stay neutral on the issue . From this it is possible to conclude that the selection
process is not fair and subject to biases and favoritism which leads to poor selection and finally
cost to the organization.

Table 7: Staff involvement in selection process

No Response Frequency Percentage
1. Never 70 50%
2. Seldom 14 10%
3. Sometimes 42 30%
4. Often 14 10%
5. Always 0 0%
Source: Survey data, 2017
According to the survey results shown on the above table 70(50%) of the respondents answered
that they have never involved in the selection process ,whereas 42 (30%) of them respondents
that they sometimes participate in selection process on other hand the remaining 14(10%) of
them answered that their involvement in selection process is infrequent and used to participate
often respectively. Therefore from the above analysis it is possible say that most of the staff
members doesn‟t have the exposure to participate in staff selection process and it is done by
human resource department which raises questions of reliability and transparency on the selection
process.

41
Table 8: Employees perception on the overall recruitment and selection practice of the
office
No Statements Rating
Strongly Disagree Neutral Agree Strongly
disagree agree
F % F % F % F % F %
1. Recruitment and selection process of 84 60% 28 20% 28 20% - - - -
ERCA Mercato No.1 office
absolutely fair and there is no
partiality.
2. During selection, a candidate is 28 20% 56 40% 14 10% 42 30% - -
valued on his /her merit (knowledge,
skills and attributes) his /her than
work experience.
3. Time taken from recruitment to the - - - - 42 30% 84 60% 14 10%
final selection of candidate in ERCA
Mercato No.1 branch is long.
4. Different recruitment process is - - 70 50% 42 30% 28 20% - -
followed for different level of
employees.
Source: Survey data, 2017

According to the survey results shown on the above table 112(80%) of the respondents either
strongly disagree or disagree the recruitment and selection process in ERCA Mercato No.1
branch is fair and there is no partiality and believe that the recruitment and selection process in
ERCA Mercato No.1 branch is not fair and there is partiality. Around 28 (20%) of the
respondents remained neutral on the fact that recruitment and selection process in ERCA
Mercato No.1 branch is impartial. However, none of the employees believe that the recruitment
process is fair and impartial valued by experience

When we see respondents opinion on the second statement that candidate is prioritized on his/her
merit or by his/her experience during selection 84(60%) of the respondents strongly disagree and
disagree that candidate is judged by his/her merit rather than his/her work experience and they
have belief that candidate is valued by his/her total work experience than his/her merit while
42(30%) of them agree that candidates merit than work experience during selection and the
remaining 14(10%) of the respondents stay neutral on the issue. This clearly explains that
candidates are valued by experience than merit which closes the door to fresh graduates to apply
for the vacant positions posted.

42
The other statement about which respondents give their opinion is the length of time it takes
from recruitment to the final selection in which 98(70%) of the respondents strongly agree and
agree on the fact that the time it take from recruitment to final selection is long whereas the rest
42(30%) of the respondents remain indifferent on the issue. This elaborates that the time it takes
from recruitment to final selection is too long that makes the organization unable to fill the
vacant positions on time and get the required work force towards the achievement of
organizational goal.

Regarding the opinion of respondents on the use of different recruitment procedures for different
positions of employees 70(50%) of the respondents do not believe that different recruitment
process is followed for different grades of employees, 42(30%) of the respondents stay uncertain
and the remaining 28(20%) of the respondents believe that different recruitment procedures are
followed for different grade. This indicates that different recruitment procedures are not followed
to different grades of employees in the organization results in unnecessary time and money spent
for recruitment.

Table 9: Challenges of recruitment and selection process

Strongly Disagree Neutral Agree Strongly
disagree agree
No statements F % F % F % F % F %

1. Employees turn over - - - - 28 20% 84 60% 28 20%

2. Competition in the labor market - - 28 20% 42 30% 70 50% - -
3. Ineffective job analysis 14 10% 28 20% 28 20% 56 40% 14 10%
4. Ineffective selection methods - - 28 20% 14 10% 70 50% 28 20%
5. Lack of qualified and experienced 28 20% 28 20% 42 30% 42 30% - -
candidates
6. Favoritism and nepotism - - 28 20% 42 30% 56 40% 14 10%
Source: Survey data, 2017

The top challenges are discussed below. One major challenge identified to be frequently facing
recruitment and selection in ERCA Mercato No.1 branch office is employees turn over (HR)
planning from the total respondents 60% of them agree that employee‟s turnover is a problem of
recruitment and selection while the rest 20% remain uncertain on the issue.

43
The second most challenge of recruitment and selection in ERCA Mercato No.1 branch is
Ineffective job analysis in which 70 (50%) of them agreed that ineffective job analysis is a
problem for the recruitment and selection process in their organization whereas 42(30%) of the
respondents disagree that ineffective job analysis is not problem of recruitment and selection in
their organization while the remaining 28(20%) of the respondents stay indifferent. Therefore it
is possible to say that ineffective job analysis is a potential challenge of recruitment and selection
process at ERCA Mercato No.1branch office.

The other challenge of recruitment and selection in ERCA Mercato No.1 Branch ineffective
selection method as major challenge for recruitment and selection process in which 98(70%) of
the respondents indicate that selection methods applied by HR department is poor and ineffective
and become a problem of the recruitment and selection process in their organization, while only
28(20%) of them disagree on the issue and indicate that there is no problem with selection
method adopted by their organization whereas the rest 14(10%) of the respondents stay
indifferent on the issue.
According to the survey fourth challenge for recruitment and selection in ERCA Mercato No.1
branch is favoritism and nepotism in which 70(50%) of the respondents agreed that there is
favoritism and nepotism in recruitment of employees in their organization whereas 42(30%) of
the respondents disagree on the existence of favoritism and nepotism during recruitment and
selection in their organization and 42(30%) remain uncertain on the issue.
Suggested solutions to improve the recruitment and selection process
The researcher tried to find out better solutions from respondents that can improve recruitment
and selection practices or processes in ERCA Mercato No.1 branch.
Most respondents gave the opinion that the recruitment and selection of ERCA Mercato No.1
branch is improved by preparing plan for recruitment practices in the organization.
The other proposed solution by the Respondents for better recruitment and selection is that
preparing efficient job description because job description is the first step towards successful
process of recruitment. As well as provide proper information about the requirements of the job
and the skills that are important for the job position.
Thirdly Respondents stated that the procedure for recruitment and selection should be strictly
followed and Procedures such as educational or academic qualification experience and
interviews all that helps to select the best of candidates for the organization.

44
The other solution respondents forwarded so as to improve the recruitment and selection process
is the use of effective selection methods because most of the selection problems occur due to the
selection methods used do not match with the skills, abilities and knowledge that needs to be
evaluated the and people involved in the process are not well trained and know how subjective
errors. Selection process should be based on a systematic review of the knowledge, skills, and
abilities required for the position, as well as organizational and cultural fit.
The Finally suggested solution by the respondents is that applicants should be given an equal
opportunity of being selected and treated fairly while all favoritism and biases are eliminated to
ensure that all get a fair chance of being selected and employed.
Analysis of results from Interview
The results of the interview with top management, HR department employees work process
coordinators and team leaders about the recruitment and selection practice of ERCA Mercato
No.1 branch is discussed below.
The first question forwarded to the respondents is whether ERCA Mercato No.1 branch follows
clear procedures for recruitment and selection of employees or not out of the total 62 respondents
about majority of the respondents answered that HR department follows clear procedures during
recruitment and selection of employees where as some of them remain indifferent.
The second question forwarded to the respondents were about job analysis before of a job
vacancy is advertised in which from the total respondents about 70% of them answered that HR
department undertakes proper analysis of knowledge‟s ,skills and duties before the job is
advertised whereas the remaining 30% off the respondents remain neutral on the issue.
Thirdly respondents were asked for their opinion about the method of recruitment adopted by
ERCA Mercato No.1 branch in which about 40% of them answered newspaper advert of job
vacancy is the most frequently used method of recruitment whereas 30% of the respondents
answered that TV and Radio advert of job vacancy is the method adopted by their organization
are the most frequently used and the rest 20% and 10% of the respondents answered both
newspaper and TV advert of jobs vacancy and notice board as the most common methods of
recruitment respectively.
The fourth question forwarded to the respondents were about factors considered before selection
of prospective employees in which about 50% of the respondent answered test on general
knowledge of candidates is considered , 20% of the respondents responds that interview of

45
candidates is considered before selection the whereas 20% of the respondents replied that
educational qualification of the prospective employees is considered before selection and 10% of
the respondents answered work experience is considered before selection.
The fifth question in which respondents asked for their opinion were about the challenges of
recruitment and selection process in ERCA Mercato No.1 branch accordingly from the total
respondents 70% of the respondents answered that high turnover rate in the organization is the
biggest challenge of recruitment and selection in their organization in which most of the newly
recruited employees leave the organization even before completing their probation period. The
other challenge mentioned by about 20% of the respondents is that prevalence stiff competition
in the labor market especially from the financial institutions in which most of the employees
leaving the organization join these institutions due to better salary offers and benefit packages
available. Whereas the rest 10% of the respondents said that in availability of the best talent in
the labor market is the biggest challenge of recruitment and selection at ERCA Mercato
No.1branch.
The final question is about respondent suggestion to improve recruitment and selection process
at ERCA Mercato No.1 branch in which 50% of the respondents suggested that HR departments‟
proper following of the recruitment and selection procedures could improve the recruitment and
selection process in the organization whereas 30% of the respondents suggested that
advertisement of job vacancy should be made open to the general public with detail information
about the job and 20% of the respondents suggested that the use of effective selection methods
could improve the recruitment and selection practice in the organization.

46
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

The purpose of this chapter is to round off the study with summary of findings, conclusion and
Recommendations. The conclusions would be made from the analysis and the objectives of the
Research.

5.1 Summary of Major Findings

The general objective of the study was to assess the recruitment and selection practice of
Ethiopian Revenues and Customs Authority Mercato no.1 branch office. It has assessed
recruitment process, the basis of recruitment, methods of recruitment, effectiveness of the
recruitment process, the selection process, the selection steps, staffs involvement in selection
process, perception of employees on recruitment and selection, challenges of recruitment and
selection process, Suggested solutions to improve the recruitment and selection process. In
general terms, the study result was based on the presentation and interpretation of findings in
chapter four is summarized here below.
The recruitment process
As confirmed by majority of the respondents clear procedures are followed during recruitment of
employees at ERCA Mercato No.1 branch. This is also supported by results from interview
session.
As confirmed by majority of the respondents (70%), the HR department adheres to the
recruitment policies and procedures of the organization.
As it is revealed by most of the respondent‟s the recruitment process is not monitored to ensure
fairness and transparency in the organization.

As revealed by half of the respondents (50%), proper consideration is given to skills,

competencies and traits before a post is advertised in the organization.

47
The basis of recruitment

As asserted by nearly half of the respondents the basis of recruitment in their organization is
merit but significant numbers of respondents believe that political affiliation and family basis are
used in recruitment of employees at ERCA Mercato no.1 branch.

Effectiveness of recruitment

As confirmed by majority of the respondents of the respondents that the recruitment process in
the organization is effective enough.

Recruitment methods employed

As revealed by most of the respondents advertisement of job through newspaper, radio and TV
advert are the widely used methods of recruitment. This is also supported by information
gathered from the interview session.

Selection process

As asserted by majority of the respondents (80%), formal academic qualification is considered

when selecting candidates. This is also supported with the information obtained from the
interview session.
As confirmed by half of the respondents (50%), experience takes precedence over qualifications
when selecting candidates.
As revealed by More than half (60%) of the respondents curriculum vitae, references and
qualifications are checked thoroughly before appointing a candidate.
As confirmed by most of the respondents employees are not made to adjust with their new job in
the organization office.
Employees’ involvement in selection process
As revealed by most of the respondent‟s employees are not made to involve in selection process
at ERCA Mercato no.1 branch office.

48
Employees’ perception on overall recruitment and selection practice of the office
As stated by majority of the respondents (70%), recruitment and selection process is not fair and
not free from partiality at ERCA Mercato no.1 branch.
As indicated by most of the respondents (60%), during selection a candidate is valued on his /her
experience than merit (knowledge, skills and attributes).
As asserted by majority of the respondents (70%), Time taken from recruitment to the final
selection of candidate in ERCA Mercato No.1 branch is long.
As ascertained by that majority of the respondents (70%), different recruitment process is not
followed for different grades of employees in the organization.
Challenges of recruitment and selection process
As stated by majority of the respondents that employee‟s turnover and stiff competition in the
labor market are the major challenges of recruitment and selection in their organization.
Furthermore this is supported by information obtained from interview.
Suggested solutions to improve recruitment and selection practice
As stated by most of the respondents proper plan for recruitment process, strictly following of
recruitment process, effective job analysis and description and use of effective recruitment
methods can improve the recruitment and selection process at ERCA Mercato no.1 branch.

5.2 Conclusion

From the data analysis the following conclusions were drawn.

 In ERCA Mercato no.1 branch even though clear procedures are followed during
recruitment and selection decisions are not made on the basis of the ability of the
applicants to meet the requirements of the job description , personal specification and
any other relevant criteria‟s. As a result all applicants and employees are not treated fairly
and according to the procedure. As a result most of the new and existing employees do
not really know the demands of their job.
 The recruitment process of the ERCA Mercato no.1 branch is not carried out in a fairly
and transparent manner and the time it takes from recruitment to final selection is too
long and there is a problem of executing the recruitment and selection practice according
to the time line specified by the organization which results in greater cost, disruption of
service or work and potential dissatisfaction of current employees.

49
  ERCA Mercato no.1 no efforts are made to adjust employee with their new job, with their
co-workers and work environment as a result this leads to employee‟s turnover that is a
major challenge of recruitment and selection process in the organization as revealed by
the study.
 According to the study one challenge facing recruitment and selection practices at ERCA
Mercato no.1 branch the unavailability of key talents on the job market to fill specialized
areas and another challenge was the rate of labor turnover. In which some of the
employees leave the institution shortly after been offered an appointment which affect the
organization as money has to be spent again for another recruitment and selection
process.

5.3 Recommendations

Based on the research findings of the study, the researcher recommends the following to help
make ERCA Mercato no.1 branch recruitment and selection practices more effective in order to
achieve organizational goals.
 There should have to be a well-structured recruitment and selection process in which job
description and specification should be prepared, deciding terms and conditions of
employment, reviewing and evaluating alternative sources of applicants, inside and
outside the organization and select candidates.
 There should be proper determination of the skills, talents, knowledge, abilities,
qualifications, responsibilities, experiences and other human attributes required for a
particular job for a successful performance.
 Appropriate job requirements and its relevant experiences should also be adopted in the
selection of new recruits to reduce cost and save time as well.
 The office should diversify the methods of recruitment from only newspapers to e-
recruitment (vacancy announcement via internet) which can help in cutting costs and
covering larger population. The office should timely based recruitment process and the
applicants who are interested in working for the office inform on the time
 The recruitment and selection process should be given to employment agencies since they
are fast and efficient in recruiting applicants for specified positions and reduce the
prevalence of problems by giving a precise definition of the job position to be filled.

50
  Preparing induction program; i.e. new employees should be well introduced to the
organization and its activities. Also proper job trainings should be organized regularly for
employees to enhance their effectiveness and efficiency by acquiring new skills and
knowledge.
 Adopting internal source of recruitment to solve turnover and unavailability of talent in
the labor market in which employees of the organization are reassigned to an area within
the organization where the need is greater.

5.4 Limitations of the study

The study was limited only to ERCA Mercato branch only because of time and financial
constraints that forced the researcher not to include other branches. In addition the study was
conducted based on perceptions /opinions/ of the respondents, which may not be free from their
individual perception and bias, in spite of the researcher‟s efforts to get them as objectively as
possible. Besides exclusion of employees below junior officers level such messengers, guards
and secretaries is another limitation of this research paper.

51
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 Appendix –A: Questionnaire completed by respondents

SAINTMARYS UNIVERSITY

School of Graduate Studies

MBA Program

Dear Respondents

I am a Graduating Student of General MBA program in the Department of Management at Saint

Mary‟s University in the postgraduate program; as a partial fulfillment of requirement of MBA
Degree program; I am conducting a study on the practices and challenges of recruitment and
selection of ERCA Mercato no.1 branch office. The purpose of this questionnaire is to enable the
researcher secure relevant information and data on the title selected, The findings of the study
may help the Authority to improve its human resource management practices as well as get a
competitive advantage in the different competent organization, your responses are thus
indispensable for the successful accomplishment of this study and in turn for accomplishing the
success of your Authority .please provide genuine and complete information for the questions
and rest assured that your responses shall be kept confidential and will only serve for the purpose
of this study.

Thank you for your collaboration

Fitsum Tesfahun

Directions:

• No need to write your name

.Please answer question by tick mark

• Answer the alternative questions by encircling the choices

• If you have any question, please contact me on 0913-59 04 10.

57
Section A- Personal Data

1. Sex

a. Male b. Female

2. How long have you been working in your organization?

a. less than 1 year

b. 1 – 5 years

c. 6 – 10 years

d. 11 – 15 years

e. 16– 20 years

f. 20 years and above

3. Educational level

a. Below 12grade

b. High School complete

c. Certificate

d. Diploma

e. First degree

f. Master‟s degree

g. PHD

4. Current position/job title in the Authority

a. Manager □

b. Deputy Manager

c. Work process leader

d. Team leader

e. Senior officer

f. Junior officer

58
g. external expert

h. Other

Section B-Recruitment and selection

5. What is the basis for recruitment in your organization?

a. Political affiliation

b. On merit

c. Family or relatives

d. Payment of money

6. Recruitment practices

Please indicate the extent to which you agree or disagree with the following statement byplacing
a tick mark block which most accurately reflects your opinion

Note: Strongly disagree :5, disagree :4,Neutral :3, Agree:2 and Strongly Agree: 1

Statements
1 2 3 4 5
1. Clear procedures are followed during recruitment of
employees

2. The human resource department adheres to these

policies and procedures
3. The recruitment process is monitored to ensure fairness
and transparency
4. There is proper planning for the recruitment process

5. Proper consideration is given to skills, competencies

and traits before a post is advertised

7. How effective are the recruitment practices of ERCA Mercato no.1 branch?

a. Very Effective

b. Good

c. Not Effective

59
d. Indifferent

e. Bad

8. Which source of recruitment is the best to recruit employees in your organization?

a. Internal source

b. External source

9. Which of these methods of recruitment are used in your organization? You may select more
than one if necessary.

a. Radio advert

b. TV advert

c. Newspaper advert

d. Professional association(s)

e. Employment agencies

f. Employee referrals

g. If other(s) specify……………………………………………………………………..

………………………………………………………………………………………

60
10. Selection process

Please indicate the extent to which you agree or disagree with the following statement by placing
a tick mark on block which most accurately reflects your opinion

Note: Strongly disagree :5,Disagree :4,Neutral :3,Agree:2 and Strongly Agree: 1

Questions 1 2 3 4 5
1. A formal academic qualification is considered when
selecting candidates
2. Experience takes precedence over qualifications when
selecting candidates
3. The curriculum vitae, references and qualifications are
checked thoroughly before appointing a candidate
4. Candidates are selected on the basis of their
competency and qualification
5. The selection panel always recommend the
appointment of candidates who have better skills and
qualifications than the rest
6. Employees are made to adjust with their new job

11.To what extent does your organization follow the selection steps?

a.Never

b. Seldom

c. Sometimes

d. Often

e.Always

12. How frequently are you involved in selection process?

a.Never

b. Seldom

c. Sometimes

d. often

e.Always

61
13. Employees perception on recruitment and selection process

No Statements Rating
Strongly Disagree Neutral Agree Strongly
disagree agree

1. Recruitment and selection process

of ERCA Mercato No.1 office
absolutely fair and there is no
partiality.
2. During selection, a candidate is
valued on his /her merit (knowledge,
skills and attributes) his /her than
work experience.
3. Time taken from recruitment to the
final selection of candidate in ERCA
Mercato No.1 branch is long.
4. Different recruitment process is
followed for different level of
employees.
14.The under listed are some identified common challenges in the recruitment and selection
practices. Please indicate whether you 1= stronglydisagree, 2 =Disagree, 3=Neutral, 4=Agree,
5=strongly agree on the statements by putting a tick mark on the space provided.

Strongly Disagree Neutral Agree Strongly

disagree agree
No Statements

1. Turnover of
employees
2. Stiff Competition in
the labor market
3. Ineffective job
analysis
4. Ineffective selection
methods
5. Unavailability of
qualified and
experienced
candidates
6. Favoritism and
nepotism

62
15 .If there are other please mention

………………………………………………………………………………………………

……………………………………………………………………………………………….

……………………………………………………………………………………………….

………………………………………………………………………………………………..

16. Please suggest solutions that can improve the current recruitment and selection practice used
by your organization; aimed at retaining recruited workers?

…..………………………………………………………………………………

………………………………………………………………………………….

….………………………………………………………………………………

63
Appendix –B

Interview Question to top management, HR department, work process coordinators and

team leaders of ERCA Mercato no.1 branch

1. Do you think clear procedures of recruitment and selection are followed at ERCA Mercato
no.1 branch?
2. Do you undertake a job analysis before a vacancy post is advertised at ERCA Mercato no.1
branch?
3. What methods of recruitment are by ERCA Mercato no.1 branch?
4. What factors are considered during recruitment and selection at ERCA Mercato no.1 branch?
5. What are the challenges of recruitment and selection at ERCA Mercato no.1 branch?
6. What solution do you propose for the improvement of the current recruitment and selection
practice at ERCA Mercato no.1 branch?

64